Management Prjct KSE

Management Project

INTRODUCTION TO THE STUDY

As a part of Bachelor of Business Administration, the researcher

conducted a management project on any of the private/public organization. As a part of

the project under prescribed syllabus of Mahatma Gandhi University, Kottayam, the

researcher had selected a well established and well reputed company , Kerala Solvent

Extractions Ltd.The researcher selects the topic “A STUDY ON DEALERS

SATISFACTION WITH REFERENCE TO KS MILK IN TRICHUR TOWN”.

Every company wants to know present position of its production.

This is because with its information they can develop marketing strategies to maintain

the current position. If the company’s market position is not good it has to formulate

different marketing strategies to make the brand better positioned with this aim in mind

researcher took the problem to find out the market position of K S milk among its

competitors.

The project is done at KSE dairy unit Konikkara, Marthakkara,

Thrissur district, Kerala. KSE is the number one cattle feed producing company in

India. Its product is KS milk. This project is to find out the market position of KS milk

with respect to its competitors in Thrissur district in terms of quality, brand loyalty and

promotional activities.

1Nirmala College of Information Technology, Chalakudy

Management Project

RATIONALE OF THE STUDY

As a part of curriculum the researcher has done the study on the

“A STUDY ON DEALERS SATISFACTION WITH REFERENCE TO KS MILK IN

TRICHUR TOWN”. The need of the study is to fulfill the requirements of the syllabus

provided for the completion of Bachelor of Business Administration course as per

Mahatma Gandhi University. This marketing research tries to highlight the threats and

position of KS milk. This study is intended to the dealer’s satisfaction level of KS milk.

This study also analyzes the customer’s satisfaction level regarding the product. The

researcher has selected this topic as it is relevant to the company and helps to

understand the working condition and to improve market position of the company.

OBJECTIVES OF THE STUDY


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1. To find out the dealers attitude towards branded milk.

2. To identify reason as to why customers and dealers prefer KS milk.

3. Find out the level of awareness among the dealers regarding KS milk and other KS

products.

4. To evaluate present market condition of KS milk.

5. To find out the expectation of dealers from the company side.

6. To know the buying behavior and motive of customers.

7. To find out how dealers rate the promotional activities.

8. To identify the competitors of KS milk in Trissur town


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HYPOTHESIS

A hypothesis, generally means a mere a assumption or supposition to be

proved or disproved. But for a researcher hypothesis is a normal question that he

intends to resolve .Hypothesis is a tentative proposition formulated for empirical

testing. It is a tentative answer to a research question. It is tentative because its validity

has to start somewhere. This point of start is called hypothesis is usually considered as

the principal instrument in research. Its main function is to suggest new experiments

and observations. In fact, many experiments are carried out with the deliberate object of

testing hypotheses. Decision-makers often face situations wherein they are interested in

testing hypotheses on the basis of available information and then take decisions on the

basis of such testing. There are two types of hypothesis they are:

i. NULL HYPOTHESIS

The null hypothesis formally describe some aspects of statistical behavior of a set of

data .The null hypothesis is a hypothesis which the researcher tries to disproves, reject

or nullity in statistical hypothesis testing. The description is assumed to be valid unless

the actual behavior of the data contradicts this assumption.

H0-The dealers of K.S milk are satisfied

ii. ALTERNATIVE HYPOTHESIS

Alternative hypothesis is the hypothesis that the restrictions or set of restrictions to

be tested does not hold .The alternative hypothesis which is opposite of the null

hypothesis is stated expressing a relationship between two variables or indicating

difference between groups.

H1- The dealers of K.S milk are not satisfied


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RESEARCH METHODOLOGY

Research is a diligent and systematic inquiry and investigation into the subject

inorder to discover a revise facts, theories, applications etc. Methodology is a system of

methods followed by particular discipline. Thus research methodology is the way how

we conduct our research.

Research methodology is a way to systematically solve the research problem. It

may be understood as a science of studying how research is done scientifically. In it we

study the various steps that are generally adopted by a researcher in studying his

research problem along with the logic behind them. It is necessary for the researcher to

know not only the research methods/techniques but also the methodology. Researchers

not only need to know how to develop certain indices or tests, how to calculate the

mean, the mode, the median or the standard deviation or chi-square, how to apply

particular research techniques, but they also need to know which of these methods or

techniques, are relevant and which are not, and what would they mean and indicate and

why. Researchers also need to understand the assumptions underlying various

techniques and they need to know the criteria by which they can decide that certain

techniques and procedures will be applicable to certain problems and others will not.

All this means that it is necessary for the researcher to design his methodology for his

problem as the same may differ from problem to problem. For example, an architect,

who designs a building, has to consciously evaluate the basis of his decisions, i.e., he

has to evaluate why and on what basis he selects particular size, number and location of

doors, windows and ventilators, uses particular materials and not others and the like.

Similarly, in research the scientist has to expose the research decisions to evaluation

before they are implemented. He has to specify very clearly and precisely what

decisions he selects and why he selects them so that they can be evaluated by others

also.


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RESEARCH DESIGN

The research design is a conceptual framework within which the researcher is

to be conducted .Rather it is the skeleton of the research work to be undertaken, which

can be modified to suit the nature and procedure of the research. A research design is

defined as “the orderly arrangement of elements and conditions for the collection and

analysis of data in a manner that aims to combine relevance to the research objective

with economy in procedure.” Rather it is a plan of action or blue print for the collection

and analysis of data. A suitable research design shall be selected for the study in hand

based on the nature and purpose of the study.

There are many types of research design they are:

i. Exploratory research design.

ii. Descriptive research design.

iii. Diagnostic research design.

iv. Experimental research design.

The researcher here selects descriptive research design.

DESCRITIVE RESEARCH DESIGN

A descriptive research design is concerned with the detail description of certain

functional variables and characteristics of a problem situation since it is concerned with

the explanation of the problem situation and allied variables its rather called explanatory

research .Descriptive research should define the who , what , where , why and how

aspects of the research. Descriptive research includes surveys and fact-finding enquiries

of different kinds. The major purpose of descriptive research is description of the state

of affairs as it exists at present .The main characteristic of this method is that the

researcher has no control over the variables; he can only report what has happened or

what is happening. The methods of research utilized in descriptive research are survey

methods of all kinds, including comparative and co relational methods.


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POPULATION

In any statistical investigation we are interested in studying the various

characteristics of individuals or item of a particular group. This group of individuals

study is known as population or universe .Therefore universe is the aggregate of all the

units to be studied in any field of enquiry. In statistics, “Population is the aggregate of

objects, animates or in animates under study in any statistical investigation”. It is thus a

collection of individuals or of the values or of the result of operations which can be

numerically specified. Thus, all items in any field of inquiry constitute a ‘Universe’ or

‘Population.’

The total number of dealers of K.S milk in Trissur town is 130.

CENSUS

A complete enumeration of all items in the ‘population’ is known as a census

inquiry. It can be presumed that in such an inquiry, when all items are covered, no

element of chance is left and highest accuracy is obtained. But in practice this may not

be true. Even the slightest element of bias in such an inquiry will get larger and larger as

the number of observation increases. Moreover, there is no way of checking the element

of bias or its extent except through a resurvey or use of sample checks. Data obtained

from each and every unit of population is likely to be more accurate and reliable. The

possibility of bias and prejudice is minimum. It is intended to collect information from

all the 130 dealers in Trissur town.


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DATA COLLECTION METHOD

The task of data collection begins after a research problem has been defined and

research design/ plan chalked out. While deciding about the method of data collection

to be used for the study, the researcher should keep in mind two types of data viz.,

primary and secondary .Thus the researcher have provided with two types of data

collection namely primary and secondary.

i. PRIMARY DATA COLLECTION

Primary research involves the collection of data that does not already exist, which is

research to collect original data. Primary research is often undertaken after the

researcher has gained some insight into the issue by collecting secondary data. Primary

data sources are the sources by which data are collected originally for a certain purpose.

The data collected from primary sources are called primary data.

Methods used for the collection of Primary data can be:

Observation method.

Interview method.

Through schedules.

Questionnaire method.

The researcher selects questionnaire as a tool for collecting data.

ii. SECONDARY DATA COLLECTION

Secondary data is the data collected by someone other than the user. Common

sources of secondary data for social science include censuses, surveys, organizational

records and data collected through qualitative methodologies or qualitative research.

The secondary data collection must need much care for the making of minute and

scrutiny.

Secondary Data is the data or information that is already available. This data is

collected by a person or organization other than the use of the data. Advantages of

secondary data are that it is cheap and inexpensive. It is easily accessible. It is already

available. It saves time and efforts. It is unobtrusive. It avoids data collection problems

and it provides a basis for comparison.


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Secondary Data can be collected from various sources like:

Reference books

Magazines

Websites

Already published reports

Newspapers

Journals and publications

Research papers

The researcher here selects reference books, already published reports and websites for

collecting data.

VARIABLES UNDER STUDY


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Two types of variables under study are dependent and independent variables.

i. DEPENDENT VARIABLE

Dependent variable, those are having an impact in tune with any change in the

other independent variables. A dependent variable is what you measure in the

experiment and what is affected during the experiment. It is called dependent because it

‘depends’ on the independent variable. In a scientific experiment, you cannot have a

dependent variable without an independent variable. Dependent variables can be

defined as the variables under study which are changeable with a variation in the

independent variables.

The dependent variable in this study is: A study on dealers satisfaction with

reference to K.S milk in Trissur town.

ii. INDEPENDENT VARIABLE

Independent variable, those which don’t vary or get influenced by any change in

other variables. Manipulating the variables is the main tool for experimentation.

Independent variables are those variables which depend upon the facts which help them.

It can be changed as required, and its values do not represent a problem requiring

explanation in an analysis. These variables do not vary or are influenced by any change

in other variable.

The independent variables of this study are:

Quantity

Quality

Price

Customer satisfaction

Commission

Delivery from the side of company

Seasonal offers


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Brand preference

Product knowledge

Dealers meeting

Range of products

Nature of product

Packages

Competitors price and commission

Credit sales

DURATION OF STUDY


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The duration of the project study was a period of 45 days.

LIMITATIONS OF THE STUDY

Response received could be incorrect and misleading.

Absence of respondents at their premises was a major constraint.

The scope of survey was limited to Trissur town.

MARKETING MIX


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Marketing mix is the combination of the elements of marketing and what roles

each element plays in promoting your products and services and delivering those

products and services to your customers.

Elements of the Marketing Mix

The elements of the marketing mix are also referred to as the 5 P's of

marketing. For years marketers referred to the 4 P's of marketing. Only recently has a

5th P been added. Whether you subscribe to the theory that there are four P's or five P's

of marketing, this is essentially referred to as your "marketing mix".

The 4 P's of the Marketing Mix

The original 4 P's of marketing (although they have been renamed a bit over the

years) that were the elements of marketing mix is:

Product – The products or services offered to your customer: Their physical attributes

what they do, how they differ from your competitors and what benefits they provide.

Price – How you price your product or service so that your price remains competitive

but allows you to make a good profit.

Place (Also referred to as Distribution) – Where your business sells its products or

services and how it gets those products or services to your customers.

Promotion – The methods used to communicate the features and benefits of your

products or services to your target customers

CHANNELS OF DISTRIBUTION


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A channel of distribution or trade channel is defined as the path or route

along which goods move from producers or manufacturers to ultimate consumers or

industrial users. In other words, it is a distribution network through which producer puts

his products in the market and passes it to the actual users. This channel consists of: -

producers, consumers or users and the various middlemen like wholesalers, selling

agents and retailers (dealers) who intervene between the producers and consumers.

Therefore, the channel serves to bridge the gap between the point of production and the

point of consumption thereby creating time, place and possession utilities.

A channel of distribution consists of three types of flows:-

Downward flow of goods from producers to consumers

Upward flow of cash payments for goods from consumers to producers

Flow of marketing information in both downward and upward direction i.e. Flow of

information on new products, new uses of existing products, etc from producers to

consumers. And flow of information in the form of feedback on the wants,

suggestions, complaints, etc from consumers/users to producers.

An entrepreneur has a number of alternative channels available to him for

distributing his products. These channels vary in the number and types of middlemen

involved. Some channels are short and directly link producers with customers. Whereas

other channels are long and indirectly link the two through one or more middlemen.

These channels of distribution are broadly divided into four types:-

Producer-Customer: - This is the simplest and shortest channel in which no

middlemen is involved and producers directly sell their products to the consumers. It

is fast and economical channel of distribution. Under it, the producer or entrepreneur

performs all the marketing activities himself and has full control over distribution. A

producer may sell directly to consumers through door-to-door salesmen, direct mail

or through his own retail stores. Big firms adopt this channel to cut distribution costs


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and to sell industrial products of high value. Small producers and producers of

perishable commodities also sell directly to local consumers.

Producer-Retailer-Customer: - This channel of distribution involves only one

middleman called 'retailer'. Under it, the producer sells his product to big retailers (or

retailers who buy goods in large quantities) who in turn sell to the ultimate

consumers. This channel relieves the manufacturer from burden of selling the goods

himself and at the same time gives him control over the process of distribution. This

is often suited for distribution of consumer durables and products of high value.

Producer-Wholesaler-Retailer-Customer: - This is the most common and

traditional channel of distribution. Under it, two middlemen i.e. wholesalers and

retailers are involved. Here, the producer sells his product to wholesalers, who in

turn sell it to retailers. And retailers finally sell the product to the ultimate

consumers. This channel is suitable for the producers having limited finance, narrow

product line and who needed expert services and promotional support of

wholesalers. This is mostly used for the products with widely scattered market.

Producer-Agent-Wholesaler-Retailer-Customer: - This is the longest channel of

distribution in which three middlemen are involved. This is used when the producer

wants to be fully relieved of the problem of distribution and thus hands over his

entire output to the selling agents. The agents distribute the product among a few

wholesalers. Each wholesaler distributes the product among a number of retailers

who finally sell it to the ultimate consumers. This channel is suitable for wider

distribution of various industrial products


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DEALER

A dealer facilitates market liquidity by intermediating between transistors

to whom time is important in exchange for charging buyers a higher price than he pays

sellers. A value-based investor may also fulfill this function, but at a larger bid-asked

spread than that imposed by the dealer. Relative to the value-based investor, the dealer

has limited capital, hence limited ability to absorb risk; he will thus limit the position-

long or short-he is willing to take. When the dealer's position reaches a maximum, he

will lay off to the only other transactor motivated by price-the value-based investor.

The dealer's price is tied to the value-based investor's price at these layoff points. As the

value-based investor shifts his prices in response to new information, the dealer's

interior prices shift along with his layoff prices. An investor should realize that, when

he trades with the crowd, he is trading at the value-based investor's spread, which may

be many times the size of the explicit dealer's spread. More generally, the actions of the

crowd--whether it is buying or selling, and in what volume will determine whether the

price of trading quickly is high or low, hence whether the value of his information

justifies trading.

FUNCTIONS OF DEALERS

Creating Value

The value of a product to a consumer, called its utility, is a measure of how much it

improves the person's life. There are four types of utilities: Time, place, form and

possession. Intermediaries add to time utility by making products accessible when

people want them. They create place utility by having goods available where consumers

want to shop. Possession utility involves helping people take title to an item, like a car

dealer arranging financing. Form utility is when an intermediary makes products more

usable or convenient. For example, soda bottlers transform flavoured syrups into soft

drinks.

Transactional Functions


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The transactional functions of intermediaries involve buying, selling and risk taking.

Wholesalers or agents buy products from manufacturers in sufficient quantities to stock

the shelves of multiple stores. They promote the goods to build sales, using personal

salespeople and various marketing communication devices aimed at retailers. While

buying and selling, all intermediaries take a measure of risk. That is because the

inventory they stock in their warehouses can lose competitive appeal or become

obsolete before it is sold.

Logistical Functions

Most mass market products must be manufactured in large quantities to achieve

economies of scale, but few producers can afford to store their inventories or ship small

numbers of items to individual consumers. Instead, they rely on intermediaries to

perform these and other logistical functions. For example, frozen food manufacturers

ship to supermarkets, not direct to consumers' homes. Book publishers rarely sell to

bookstores; they do business primarily with book wholesalers, who assemble large

assortments of new releases and then distribute them in accordance with reader demand.

Facilitating Functions

Facilitating functions include various activities performed by intermediaries to make

exchanges easier for consumers. This often involves collecting and disseminating

information. For example, brokers who buy fresh beef or pork from ranchers inspect

and grade the meat to enable buyers to accurately compare alternatives. Fruit and

vegetable wholesalers sort and certify the freshness of produce. Another facilitating

function is the provision of credit and other financial services. This is especially

important among retailers, who commonly issue credit cards and offer layaway

programs.

BENEFITS OF INTERMEDIARIES


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If selling directly from the manufacturer to the consumer was always the most

efficient methodology for doing business, the need for channels of distribution would be

obviated. Intermediaries, however, provide several benefits to both manufacturers and

consumers: improved efficiency, a better assortment of products, reutilisation of

transactions, and easier searching for goods as well as customers.

The improved efficiency that results from adding intermediaries in the

channels of distribution can easily be grasped with the help of a few examples. Take

five manufacturers and 20 retailers, for instance. If each manufacturer sells directly to

each retailer, there are 100 contact linens line from each manufacturer to each retailer.

The complexity of this distribution arrangement can be reduced by adding wholesalers

as intermediaries between manufacturers and retailers. If a single wholesaler serves as

the intermediaries, the number of contacts is reduced from 100 to 25: five contact lines

between the manufacturers and the wholesaler, and 20 contact lines between the

wholesaler and the retailers. Reducing the number of necessary contacts brings more

efficiency into the distribution system by eliminating duplicate efforts in ordering,

processing, shipping, etc.

In terms of efficiency there is an effect of diminishing returns as more

intermediaries are added to the channels of distribution. If, in the example above, there

were three wholesalers instead of only one, the number of essential contacts increases to

75: 15 contacts between five manufacturers and three wholesalers, plus 60 contacts

between three wholesalers and 20 retailers. Of course this example assumes that each

retailer would order from each wholesaler and that each manufacturer would supply

each wholesaler. In fact geographic and other constraints typically eliminate some lines

of contact, making the channels of distribution more efficient.

Intermediaries provide a second benefit by bridging the gap between the

assortment of goods and services generated by producers and those in demand from

consumers. Manufacturers typically produce large quantities of a few similar products,

while consumers want small quantities of many different products. In order to smooth


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the flow of goods and services, intermediaries perform such functions as sorting,

accumulation, allocation, and creating assortments. In sorting, intermediaries take a

supply of different items and sort them into similar groupings, as exemplified by graded

agricultural products. Accumulation means that intermediaries bring together items

from a number of different sources to create a larger supply for their customers.

Intermediaries allocate products by breaking down a homogeneous supply into smaller

units for resale. Finally, they build up an assortment of products to give their customers

a wider selection.

A third benefit provided by intermediaries is that they help reduce the cost of

distribution by making transactions routine. Exchange relationships can be standardized

in terms of lot size, frequency of delivery and payment, and communications. Seller and

buyer no longer have to bargain over every transaction. As transactions become more

routine, the costs associated with those transactions are reduced.

The use of intermediaries also aids the search processes of both buyers and

sellers. Producers are searching to determine their customers' needs, while customers

are searching for certain products and services. A degree of uncertainty in both search

processes can be reduced by using channels of distribution. For example, consumers are

more likely to find what they are looking for when they shop at wholesale or retail

institutions organized by separate lines of trade, such as grocery, hardware, and clothing

stores. In addition, producers can make some of their commonly used products more

widely available by placing them in many different retail outlets, so that consumers are

more likely to find them at the right time.

DAIRY INDUSTRY


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The dairy industry is recognized as one of the largest and most important of food

industries. The dairy industry exists for one purpose – to provide, at a reasonable cost,

milk and milk products that satisfy the consumer’s needs and fulfils his nutritional

requirements. The industry means different things to the different participant- the

producers, the dairy handlers and consumers.

The word “Dairy” was derived from the Middle English word, “deirie” meaning

day or maid servant worked. Dairy now connotes a wide range of activities starting with

the production of milk in the farm to the point it reaches the consumer in the form of

liquid together by a diverse field of disciplines such as dairy science, animal husbandry,

crop husbandry, and dairy engineering. Management science is applicable in each of

these disciplines and integrates them, to achieve the objective of providing milk to the

consumer by making an optimum use of Earth’s renewable resources for production of

milk.

The importance of dairying stems from the role of milk in human nutrition. Food

serves two major functions in human nutrition, to provide energy and to furnish the

elements essential for growth and replacement of body tissues. All the three main forms

of food-carbo-hydrates, fats and proteins provide the energy, but only proteins can

supply nitrogen and amino-acids essential for growth and replacement of tissues. In

planning for human nutrition, there are two possible stages the first has a limited

objective of holding back hunger while the second is achieved by providing a balanced

diet which includes ascertain quantity of animal protein to include the essential amino-

acids in the diet. The developed countries have achieved the second stage. The

developed countries need to plan their agriculture for providing adequate balanced

nutrition from the available resources within the country. The relevance of the dairy

industry, at this stage of planning for food, is in promoting supply of balanced diet to

the population.


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In terms of biological value human nutrition egg protein is the most

important, followed by the protein from milk. Egg or milk protein can furnish all the

amino-acids essential for normal growth and healthy life processes, provided that they

are consumed inadequate amounts. Fish, meat and poultry products are also high in the

scale of biological value. Vegetable protein from wheat, maize, rice, beans and nuts are

of low biological value, particularly when it represents the only source of protein. The

essential amino-acids are not provided in sufficient quantities. In many of the

developing countries, more so in India, milk may form the only source of animal

protein. “One quart (approximately on litre) of milk furnishes approximately all the fat,

calcium, phosphorus and riboflavin; half the protein; one third of the vitamin A, acetic

acid and thiamin; one fourth the calories and with the expectation of iron, copper,

magnesium and manganese, all the minerals needed daily considerable amounts of

nicotinic and chorine are also provided”. Milk is the secretion of mammary glands,

produced primarily for feeding the young. All mammals produce milk. However, milk

is obtained for commercial consumption purposes from domestic animals, particularly

the cow. The milk of different species essentially contains the same constituents. The

composition may, however vary from species to species in minor proposition. The

variation in milk composition is likely to occur within the species due to a number of

factors like breed, age, stage of lactation, individual variation, seasonal variation,

variation from lactation to lactation, interval between milking, first and last milk, fitness

of the animal and feed provided to the animal. Milk and cream are the main products of

dairying. The other products are derived from these principle products. The industry

faced with some general characteristics peculiar to dairying. The production of milk is

seasonal mainly because of the nature and purpose of milk production. Milk is produced

for the young calf and is, therefore, depended on the calving season. However, the

demand for milk and milk products remain the same throughout the year. Milk is bulky

and highly perishable. The milk handlers, therefore, have to process the milk and store

it under refrigeration or reduce the bulk by drying before storage.

Agriculture and allied industries account for nearly half the gross national

income of India, one fourth of which is from dairy. The national economy of certain


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European countries like Denmark and Sweden are depended almost entirely on animal

husbandry of which dairying is a major industry. In the US, dairy industry alone

contributes to one fifth of the total agricultural income. Moreover, the consumer spends

a fifth of his food expenses on milk and milk and milk products. Apart from the

contribution, dairying needs to the economy and nutritional status of any country, the

industry provides employments to thousands of people. In the US, over a quarter

million people were employed by the dairy industry in 2000. In the tropics, where

dairying is less developed, millions earn their income either partly or wholly from the

dairy industry.

INDIAN DAIRY INDUSTRY


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INTRODUCTION

India is the highest milk producer in the entire globe. India is well known as

the ‘Oyster’ of the global dairy industry, with opportunities galore for the entrepreneurs

globally. It might be dream for any nation in the world to capitalize on the largest and

fastest growing milk and milk products' market. The dairy industry in India has been

witnessing rapid growth with liberalization. As the economy provides good

opportunities for MNCs and foreign investors to release the full potential of this

industry. The main objective of the Indian Dairy Industry is to manage the national

resources in a manner to enhance milk production and upgrade milk processing using

innovative technologies.

The crossbred technology in the Indian Dairy Industry has further

augmented with the viability of the dairy units by increasing the milk production per

animal. Then subsequently milk production has also increased at an exponential rate

while the benefits of an increase in milk production also reached the consumers from a

relatively lower increase in the price of milk. The favorable price environment for milk

producers for the Dairy Industry in India however appeared to have weakened during

the 90's, a decline in the real price of milk being noticed after the year 1992. And then

slowly regained it is glory after 1992 to till now.

In India dairying from very much earlier is regarded as an instrument for

social and economic development. The country’s milk supply comes from millions of

small producers, who are dispersed throughout the rural areas. All these farmers

maintain an average herd of one or two milch animals, comprising cows and/or

buffaloes. Mostly ample labour and a small land base encourage farmers to practice

dairying as an occupation subsidiary to agriculture. As income from crop production is

seasonal instead dairying provides a stable which is a year-round income and also an

important economic incentive for the small farmer.


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HISTORY OF INDIAN DAIRY INDUSTRY

India had tremendous milk production in 40 years and has become the world’s

largest milk-producing nation with a gross output of 84.6 million tons in 2001. The

Indian Dairy Industry has achieved this strength of a producer-owned and

professionally-managed cooperative system, despite the facts that a majority of dairy

farmers are illiterate and run small, marginal operations and for many farmers, selling

milk is their sole source of income. More than 10 million dairy farmers belong to

96,000 local dairy cooperatives, who sell their products to one of 170 milk producers’

cooperative unions who in turn are supported by 15 state cooperative milk marketing

federations.

In India dairy business has been practiced as rural cottage industry over the

years. Semi-commercial dairy started with the establishment of military dairy farms and

co-operative milk unions throughout the country towards the end of the 19th century.

Since Independence this Industry has made rapid progress. A large number of modern

milk and milk product factories have since been established. The organized dairies in

India have been successfully engaged in the routine commercial production of

pasteurized bottled milk for Indian dairy products.

The growth of Indian Dairy Industry during the last three decades has been

impressive, at more than 5% per annum; and in the 90's the country has emerged as the

largest producer of milk. This is not a small achievement when we consider the fact that

dairying in India is largely stringent that farmers in general keep dairy animals in

proportion to their free crop and also are available for family labor with little or no

purchased inputs and a minimum of marketed outputs. The existence of restrictive trade

policy milk in the dairy Industry and the emergence of Amul type cooperatives have

changed the dairy farming practices in the country. Farmers have gained the favourable

price for their milk and for their production which was essentially a self-reliant one is

which is now being transformed into a commercial proposition.


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In India Milk production is dominated by small and marginal land-holding

farmers and also by landless labourers who in aggregate own 70% of the national milch

animal herd. And as the crop production on 78% of the agricultural land still depends on

rain, which is prone to both drought and floods, rendering agricultural income is very

much uncertain for most of the farmers. Dairying, as a subsidiary source of income and

occupation, is real relief to most of the farmers in the society. Usually one or two milch

animals enable the farmers to generate sufficient income to break the vicious

subsistence agricultural-debt cycle.

The Operation Flood which is the successful Indian dairy development

programmed has analyzed that how food aid can be utilized as an investment in building

the type of institutional infrastructure that can bring about national dairy development.

Programmes like this, with similar policy orientations, may prove to be appropriate to

dairy development in in India.

India in the early 1950's was commercially importing around 55000 tonnes of

milk powder annually to meet the urban milk demand. Most of the significant

developments in dairying have taken place in India in this century only.

PRESENT STATUS OF INDIAN DAIRY INDUSTRY

The Indian Dairy Industry engages in the production and processing of milk &

cream. This industry is involved in the manufacture of various dairy products like

cheese, curd, yoghurt etc. The Indian Dairy Industry specializes in the procurement,

production, processing, storage and distribution of dairy products. India as nation stands

first in its share of dairy production in the international scenario. The industry

contributes about Rs 1,15,970 to the national economy.

Indian Dairy Industry is the largest milk producer all over the world, around 100

million MTIndian Dairy Industries value of output amounted to Rs. 1179 billion in

2004-05 which approximately equals combined output of paddy and wheat. With 1/5th

of the world’s bovine population. In India the Milch animals constitutes 45%

indigenous cattle, 55 % buffaloes, and 10% cross bred cows


Management Project

Intensive Dairy Development Programmed (IDDP): The Schemes, modified under

this programmes are on the basis of the recommendation of the evaluation studies which

were launched during Eighth Plan period and is being continued through out the

Eleventh Plan with an outlay of Rs. 32.49 core for 2009-10.

Strengthening Infrastructure for Quality and Clean Milk Production (CMP): this

is a centrally sponsored scheme which was launched in October 2003, which had the

main objective of improving the quality of raw milk produced at the every village level

in the India.

Dairy Venture Capital Fund- this is introduced in the Tenth Fiver Year Plan to bring

about structural changes in unorganized sector, which would measure like milk

processing at village level, marketing of pasteurized milk in a cost effective manner,

quality or the up gradation of traditional technology to handle commercial scale using

modern equipments and management skills.

FURURE SCOPE OF INDIAN DAIRY INDUSTRY

The value of the Indian dairy industry is expected to touch Rs 5 lakh crore by

2015, with milk output pegged at 190 million tonnes at the end of the period According

to an Associated Chambers of Commerce and Industry of India (ASSOCHAM) study,

the Indian dairy industry is growing at the rate of 10 per cent per annum. "Milk

production is likely to reach about 190 million tonnes in 2015 from current level of

about 123 million tonnes. India - the world's largest milk producer -- accounts for

around 20 per cent of global milk production, with most of it consumed domestically. In

India, about 60 per cent of milk is consumed in liquid form, while the remaining 40 per

cent is used in the form of butter, clarified butter (desi ghee), cheese, curd, paneer, ice

cream, dairy whiteners and traditional sweets. An upward spiral in prices, the lack of

proper infrastructure like cold storages and absence of a transparent milk pricing system

are affecting retail consumption of milk and leading to escalating milk prices in the

domestic market. Andhra Pradesh, Bihar, Haryana, Gujarat, Madhya Pradesh,


http://economictimes.indiatimes.com/topics.cms?search=retail%20consumption

http://economictimes.indiatimes.com/topics.cms?search=Indian%20dairy%20industry

Management Project

Maharashtra, Rajasthan and Uttar Pradesh are the leading milk producing states in the

country.


Management Project

DAIRY INDUSTRY IN KERALA

Milk is an unavoidable element in the life of Keralites. In olden days, Kerala was

far ahead in production of milk. But due to several reasons the production of milk is

defined. Milk producers in Kerala are in the grip of a major crisis following the flow of

large quantity of milk from outside the State at lower prices. According to a survey, the

state produces 20.61 lakhs tons of milk per annum. The production, according to market

sources, is insufficient to meet the demand of the state’s population. As a result, Kerala

has become a major market for milk produced in neighboring States. Supplies from

TamilNadu meet around 60% of the daily demand milk.

Rapid increase in milk processing and marketing companies has resulted in tough

competition leading to cut in prices. Thus, availability of milk at low prices from other

States has created a crisis for the milk producers in the State farmers said. A dairy

expert told Business Line that the only solution to the crisis was production of “good

and pure milk” by which the Kerala milk producers could compete and recapture the

market Dairy Development Board was created in 1962. The livestock Development and

Milk Marketing Board for milk procurement and marketing was set up, followed by the

Kerala Co-operative Milk Marketing Federation. But all these have failed to save the

dairy sector and the farmers.

One of the major problems being encountered is the non-availability of modern

facilities to process and stock the entire milk produced during the peak season (in

therainy months). As a result, during these months, not only are restriction imposed on

the quantity procured but there is a cut in the prices by the co-operatives. The State has

over 2,972 milk marketing their functioning unfavourable to the development of the

sector. When the societies run by NGOs procure milk at Rs.10 per litre from the farmers

by providing subsidy for cattle feeds, in Kerala they were being discouraged with taxes.

Kerala requires 68.5 lakh tons of cattle fodder, of which they only 40 tons are available

within the State. Non-availability of land and improved variety of fodder grass has

become major impediments. The estimated dairy consumption of milk in Kerala is


Management Project

35.53 lakhs liters including the institutional consumption. The average daily production

of milk in Kerala is estimated to be 32.72 lakhs liters per day. Hence there is a shortage

of 2. 81 lakhs of milk per day .


Management Project

COMPANY PROFILE

HISTORY OF KSE LTD

KSE LTD is a public limited company is an incorporated with

substantial capital participation by the Kerala state industrial development corporation

limited. Trivandrum and though loans from industrial finance corporation of India, New

Delhi. The company is engaged in the solvent extraction of ground nut cake and rice

bran also. The oil thus obtained is moved for industrial purpose in to the market. In

addition is full – fledged live stock feed division engaged in the production of ready

mixed cattle feed.

The company was registered in the year 1963. In 1973 the solvent

extraction plant was started with processing capacity of 60 metric tones of cake per day.

in1976 the company stated production of ready mixed feed with the production

capacity of 50 metric tone per day and in 1983 the company increased the production of

cattle feed to 120 tm per day which has recently been increased to 180 tm per day by the

construction of a daily automated computerized plant . In 1988 company started a

solvent extraction and cattle feed plat at Swaminathapuram near Palani, with production

capacity of 150 mts of cattle feed per day and processing capacity of 100 – 120 mts of

expeller extracted deoiled cake.

In 1972, the company laser new cattle feed plant at Pothannur near

Coimbatore with a production capacity of 80 mts per day and in 1995 company has

leased a plan in my sore with the capacity of 50 mts per day. In 1996 the company

started a new plant Vedagiry at Kottayam in Kerala with the capacity of 240 mts per

day. Kerala solvent extraction limited come out with a premium public issue on march

1993 which was over subscribed , through the stock markets are showing a low trend ,

now Kerala solvents share is still quoted at Rs140 per share whose face value is Rs 10

this reflect the confidents of investing in the company .


Management Project

It was in 1963 that Kerala solvent extraction limited now known as KSE

limited entered the solvent extraction industry setting up the very first solvent extraction

plant in the largest producer of copra in the country , as much as 80 % of it , Kerala the

infrastructure to exploit the potential of its abundant produce . While the oil industry in

other parts of the country were thriving.

The Dr. Lokhanathan committee, set up to feasibility of starting new

industries in Kerala, recommended the establishment of 3 solvent extracting plants. And

one of them, in Thrissur district. The oil mill owners in hand around Irinjalakuda , who

were thinking in similar lines saw the opportunity and look the initiative to establish a

solvent extraction unit. The solvent extraction plant went on the stream in 1972 and in

1976 a new plant was set up to manufacture ready mixed cattle feed, which was a

pioneering step. Since then there, was no looking back. The last 3 decades have seen

KSE emerging as a leader in solvent extraction and ready mixed cattle feed in the

county and though these years of consideration and diversification KSE has gate a niche

for itself.

Today KSE commands the resources, expertise and infrastructure to

manufacture a range of live stock feed in high volumes, coconut oil from coconut cake

and refined edible oil. Since the early KSE hand endeavored to supply its products to

customers through extensive net work of dealer and retailers which from a dedicated

force behind the success of KSE. It is matter of pride that KSE is house hold name

today .The KSE is a public limited company having around 6000 share holders. The

board of directors consisting 10 directors in the executive committee responsible for the

management the articles of association of the employers the board of directors of

directors to appoint one as the chief managing director and one whole time director.

The Chief Managing Director, Executive Director and Whole Time

Director are the smooth running of day to day affairs of the company. Strategic decision

of the company are taken by an executive body consisting of the Managing Director ,

Executive Director ,Whole Time Director , General Manager , Finance Manager ,


Management Project

Nutritionist , Marketing Manager , Plant Manager and Purchase Manager . These

executives are professional with vast experience in their areas of specialization.

ESTABLISHMENT

Kerala Solvent extraction limited now known as KSE

limited was established in 1963 , by a hand full of coconut millers in an around

Irinjalakuda . With a vision to over comes the crisis of the coconut oil industry. Initially

started as a solvent extraction plant the company now produces 750 – 800 MTs of

coconut cake a day with a four cattle feed production units and two solvent extraction

plants. The company has diversified in to 9 the area of dairying by establishing two

dairy plants for the production of pasteurized milk and milk products. It has obtained

ISO recognition for its commitment to quality and professionalism.

DAIRY DIVISION

KSE started operation of its dairy division on 22 January

2000.The idea of diversification into dairy industry was the outcome of the desire for

forward integration of the cattle feed business of KSE ltd, the company market a wide

range of dairy products in the market. Its main area of operation is Thrissur and also

some parts of Ernakulam and Malapuram.The products are toned homogenized

milk ,ghee, curd, sambharam and ice cream.KSE has milk processing units in

Thalayuth (Tamilnadu) and Konikkara in Thrissur have processing capacity of 20000

liters and 30000 liters per day. The brand name of milk and milk products is “KS” and

ice cream is “vesta”.


Management Project

PRESENT STATUS OF THE COMPANY

The pioneering plant of KSE at Irinjalakuda in many ways. It was first

solvent extraction plant in Kerala. It was first manor factory in the locality, spread over

15acres. It was here set up its first cattle feed plant. The embodied the spirit

of enterprise of group of committed people, who wanted to user in an era of modernity

into a traditional society and change the industrial landscape of the state. Naturally,

today the Irinjalakuda plant enjoys a flagship status and commands an edge on

infrastructural strength. Taking great in technological development, the process of

computerization in plant and office was initiated way back in 1987.Research and

development plays an important role in the activities of KSE, The central R & D unit is

located here. The plant houses a modern laboratory. The quality control cell here leads

and guides other units and formulates stringent standards. The chief Nutritionist and

Assistant manager quality controls are also based here. A proud symbol of growth, the

Irinjalakuda unit is an inspiring force for the entire KSE family.

KSE Limited an ISO 9001-2000 certified company is having an annual sales

turnover Rs. 371 crores ; Irinjalakuda branch is the head office of the company. Only

the cattle feed production is running in Irinjalakuda plant with a production capacity

of 210 tones per day.

In Swaminathapuram unit they have a model dairy farm with highly yielding

animals maintained for conducting feeding trials and other experiments .In Konikkara

unit which is main dairy division of KSE has made their products like “K.S. milk, K.S.

ghee, K.S. curd, and butter milk” has already become popular in Thrissur, Ernakulum,

Malappuram, and Alapuzha districts. In the year 2010 ice cream production also started

in Vedagiri, Kottayam to meet growing demand in Kerala.


Management Project

GROWTH CHRONICLE

Kerala solvent extraction limited was registered as a public limited

company on 25th September 1963. The company was later on renamed as KSE ltd. and

listed in stock exchange of Mumbai, Chennai, Cochin. The company started production

in 1972 with a solvent extraction capacity of 40 mts per day.

1972 : Solvent plant commences operation.

1976 : Ready mixed cattle feed.

1980 : Production capacity of cattle feed increased to 60 MTs per day.

1983 : A fully automatic new cattle feed plant started operation capacity 120 MTs / per day.

1984 : Thus solvent extraction plant capacity increased to 80 MTs / day.

1987 : Cattle feed plant capacity increased to 180 MTs / day.

1988 : Cattle feed plant in Tamilnadu went into operation .capacity 100MTs

1989 : A solvent unit with a capacity of 120 tones per day. Commences operation at the Tamil Nadu plant.

1990 : Introduction of KS supreme pellets as by pass protein cattle feed in the market.

1991 : Palakad branch started.

1993 : KS enters export market.1994 : Keys forte, the new feed supplement for

cattle feed introduced.

1995 : Cattle feed production started at my sore in Karnataka state Calicut branch started vegetables oil refining unit commenced


Management Project

operation “K.S.SUPREAM” at Irinjalakuda.

1996 : 240 TDP cattle feed plant at verdigris in Kottayam district started operation.

1997 : Company renamed as KSE LTD.

1998 : Fourth feed production unit at Palakad.

1999 : A modern children park & information center has been completed at Irinjalakuda.

2000 : Company started production & marketing of pasteurized milk and milk products.

2001 : Started operating solvent extraction plant and oil refining plant on lease at Kunjikod for processing coconut cake launched jersey in 50 kegs limited HDPE bags.

2002 : Irinjalakuda unit cattle feed plant capacity is increased to 195 MTs / day ice cream launched.

2003 : Vesta heaven ice cream par lour at

Irinjalakuda and Marthakkara started

producing cattle feed in leased plant at

Edayar.

2004 : KSE bags productivity award.

2005 : Cattle feed production capacity there of

to 200 MTs / day.


Management Project

2006 : 200 TPD the solvent extraction plan of

Kinfra Park.

2007 : Install 500 TPD cattle feed plant at

Irinjalakuda unit.

2008 : Ice cream production unit commissioned

at Thalayuthu.

2009 : CMD, CYM and others at the auto

bagging station in the 500 TPD feed will

wearing completion at Irinjalakuda.

2010 2010 : Ice cream production unit at Vedagiri.


Management Project

OBJECTIVES OF THE COMPANY

According to memorandum of association of the company. The most important

objectives are following.

1. To produce , manufacturing , extract , refine , prepare , import , export sell and

generally to deal in oil from seeds ,oil cakes and other oil bearing material to carry

on the business of refining and hydro generation of oil and manufacturing of by

products there and trades connected there with .

2. To acquire, erect, construct, establish, operate and maintain oil mills, extraction

plant, ghee plant, work shop and other works.

3. To purchase, manufacture, sell or otherwise deal in oil cakes, washing soap, toilet

soap, hair oil tinned products etc …

VISION

We shall endeavor to maintain leadership through quality

products , explore new avenue in product development are marketing , create a stronger

bond between the management , work force , dealers and customers , contribute to

social development and rural enlistment and constantly strive for excellence for in all

spheres of our activities .


Management Project

BOARD OF DIRECTORS

Chairman and managing director : M.C Paul.

Executive director : P.K. Varghese.

Director and legal adviser : A.P.George.

Director : K.P. John.

Director : P.D.Anto.

Director : Dr K.C. Vijayaraghavan.

Director : John Francis k

Director : T.R. Ragulal.

Director : Dr. Jose Paul Thaliyath.

Director : Joseph Xavier.

Chief General Manager : Anand Menon.

Company secretary -cum -general manager : R. Sankaranarayanan.


Management Project

CAPITAL OF THE COMPANY [Financial Highlight]

Starting capital of the company is Rs 320 lakhs. Paid up capital 217 per

share at Rs. 10. The turnover of the Company improved from Rs 454 crores to Rs 542

crores during the year ended 31st March, 2012, thus registering an increase of 19 %

over that of previous. In the Dairy division, the volume of sale of ice cream remained

more or less at the same levels that of previous year at 865 kl. The profit of Dairy

division for the year 2011-12 is Rs 96.99 lakhs, which was at Rs 145.03 lakhs in the

previous year. The over-all profit after tax thereby improved from Rs 449.81 lakhs in

year 2010-11 to Rs 1,044.93 lakhs in the year under report.


Management Project

PRODUCTION UNIT

IRINJALAKUDA UNIT

The pioneering plan of KSE at Irinjalakuda in many ways. It was

first solvent extraction plant in Kerala. It was first manor factory in the locality, spread

over 15 arêtes. It was here set up its first cattle feed plant. The embodied the spirit of

enterprises of group of committed people, who wanted to user in an era of modernity in

to a traditional society and change the industrial landscape of the state. Naturally, today

the Irinjalakuda plant enjoys a flag ship status and commands an on infrastructural

strength. Taking great in technological development, the process of computerized in

plant and office was initiated way back in 1987. Research and development plays an

important role in the activities of KSE. The central R&D unit is located here. The plant

houses a modern laboratory. The quality control cell here leads and guides other units

and formulates standards. The chief nutritionist and assistant manager quality control

are also based here. A proud symbol of growth, the Irinjalakuda unit is an inspiring

force for the entire KSE family.

SWAMINATHAPURAM UNIT

The enthusiastic responses received on the introduction of KS cattle feed

certain pockets of Tamilnadu promoted KSE to start a manufacturing unit in the state it

self. This unit has a daily production capacity of 180 tones cattle feed processing

capacity of 120 tones of coconut oil cake or 80 tones of bran per day. This major step

towards reinforcing the strength of KSE. A solvent extraction plant was started the very

next year. Spread out on 22 acres of land on the banks of river Amaravathi, this Rs.3.5

crores plant works round the clock. Keyes Forte is also manufactured at this unit. A

model Dairy farm with high yielding animals is also maintained in the unit for

conducting feeding trials and other experiments.


Management Project

VEDAGIRY UNIT

The third cattle feed manufacturing unit of KSE at Vedagiry, is

the most sophisticated and the finest in the country. This unit has the capacity to

produce cattle feed in both “mash” and “pellet” forms. With a weekly production

capacity of 1600 tones. In the year 2010 Ice Cream production was also started in

Vedagiri, Kottayam to meet the growing demand in Kerala.

PALAKAD UNIT

A recent addition to KSE family is the live stock feed plant at

Palakkad with a manufacturing capacity of 120 TPD, this plant caters predominantly to

the needs of the northern district of Kerala.

KORATTY UNIT

Company acquired land from Kinfra Small Industrial Park, Koratty,

Trichur Dist. And installed 200 TPD Solvent Extraction plant and 100 TPD Physical

Refining Plant with a capital outlay of Rs. 14 crores for refining Vegetable oils. Solvent

Extracted Coconut oil is refined in the plant and made edible. Commissioned

fractionation Plant in March 2009

KONIKKARA UNIT

KSE Limited entered in the field of milk procurement, processing and

marketing of liquid milk and milk products in the year 2000. “K.S. PAAL, K.S. GHEE,

K.S. CURD and BUTTER MILK” have already become popular in Trichur and

Ernakulam, Malappuram and Alleppey Districts. Ice cream under the brand name

“VESTA’ was launched during August, 2002 and have conquered the Kerala Market.


Management Project

THALAYUTHU UNIT – DAIRY DIVISION.

In the year 2000 procurement and processing of milk also started in

Thalayuthu Unit,near Palani. In 2008 Ice Cream production started in to cater the

growing demands in Tamil Nadu.

KSE LTD

Location details

Location type Address

Factory / plant : Dairy unit

Thalayathu - 624618

Tamil Nadu – India

Phone – 252861

Factory / plant : Palakkad unit

Palakkad – 678020

Kerala – India

Ph: 2536332

Factory / plant : v/679J , Muppathadam PO

Kochi – 683110

Kerala – India

Ph: 2541070

Factory / plant : Nanjaioothukuli

Erode -638104

Tamilnadu – India

Ph: 2500210


Management Project

Registered office & factory : P.B. No. 20, solvent road, Irinjalakuda

Thrissur -680121

Kerala – India

Ph: 2825476

Factory / plant : Swaminathapuram unit

Dindigul – 64213

Tamil Nadu – India

Ph: 252560

Factory / plant : Vedagiry unit Kurumullur

Kottayam – 686632

Kerala- India

Ph: 2536829

Factory / plant : Palakkad unit, NIDA, Menonpara

Road and kanji ode

Palakkad – 678621

Kerala – India

Ph: 2368176

Factory / plant : Dairy unit, Konikkara

Thrissur – 680320

Kerala – India

Ph: 2351501, 2358806.

Branch office : XXXlll/2837, Paropadi,

Kozhikode -673012

Kerala – India

Ph: 2370056


Management Project

Factory / plant : Koratty unit, Kinfra Park

Nalukettu road.

Thrissur- 680308

Kerala – India

Ph: 3257651


Board of Directors

Chairman &Managing Director. .

Chief General Manager.

Executive Director.

Officer.

Officer Sales Executive

.

Office Assistant

Office Assistant.

Clerk.

Clerk

Security guard

Assistant Manager

Store Supervisor

Store clerk

Worker

Assistant Manager

Executive Officer

Office Assistant

Clerk

Store Officer

Management Project

ORGANIZATION STRUCTURE


Chief personnel manager

Chief Quality manager

Company secretary – cum- general manager [finance] Assistant

Manager

Chief Purchase manager

Executive Officer Executive

Officer

Chief Marketing manager

Assistant Manager

Chief nutritionist

Chief Production manager

Management Project

PRODUCT OF KSE

CATTLE FEED

K.S ORDINARY (MASH )

K.S .SUPER (MASH )

K.S. SUPREME (PELLETS )

K.S. DELUXE ( PELLET )

DE OILED CAKE – JERSY

K.S REFINED SUN FLOWER OIL

DAIRY PRODUCTS

K.S. MILK

K.S GHEE

K.S. SAMPARAM

K.S BUTTERMILK

VESTA ICE CREAM


Management Project

BUSINESS OPERATIONS

The organization main business operations are buying , production ,

and selling in the operation of buying including purchase of Raw material that are

needed for the production process .In the production the purchased raw material

assembled and convert into finished goods . When it become necessary to milk larger

number of cows, the cows would be brought to a shed or barn that was set up with bails

were the cows could be confined while they were milked. One person could milk more

cows this way, as many as 20 for a skilled worker.


Raw material

Work- in -

progress

Finished goods

Debtors

Cash

Management Project

The raw milk they receives from farmers so as to extent its marketable

life. two main type of process are employed heat treatment to ensure the safety of milk

for human consumption and to lengthen its shelf – life , and dehydrating dairy products

such as butter , hard cheese and milk powders so that they can be stored .


Management Project

TRADE UNION PRESENCE

INTUC, CITU, BMC these 3 trade unions are presented in KSE ltd.

trade union will influence working of the company. Trade union as the power to resist

changes and this will effect normal working of the organization. Some times this trade

unions working will be favorable to the company and some time it will make problem

in the company


Management Project

MARKET SHARE

15%

65%

10%

10%

Chart Title

KSE ltd

MILMA

SAKTHI

PENTAGON

KS milk has a good market share in the current

market. The firm has some competitors. Even though the concern have good market

share by producing quality K.S with a reasonable price.


Management Project

COMPANY LIFE CYCLE:

KS milk exist in the growth stage of the company life cycle. In this stage the

sales are increased rapidly and try to expand the scale of production , and the main

feature of growth stage is rising profit and lower cost of production per unit and

competition increased in the market .


Management Project

COMPETITORS

The main competitors of K. S. MILK are given below

Milma

Sakthi

Pentagon

Amul

Vavins

PDDP

Amruth

KPS etc ….


Management Project

FUTURE PROSPECTS AND GROTH PLAN

The Animal feed division is expected to perform well in year 2012-

13 also, though there is high volatility in the ingredient prices. There is good demand

for the feed, and the company is unable to meet the demand in certain pockets. KSE is

adding capacities to meet the increased demand. The increase in the price of milk by

the Government of Kerala, will help to boost the cattle rearing, and company expect a

steady demand in year 2012-13. Adjustment in feed price, to match the ingredient

prices, will be possible, without losing the market share, when the demand is steady.

Good quality copra cake is available now as per requirement from Kerala and Tamil

Nadu at reasonable price and the dependency on import has reduced to that extent. The

company is trying to utilise the capacities for ice cream in Thalayuthu and Vedagiri ice

cream units and once they are able to improve the volume, the Dairy division will

generate higher revenue.


Marketing Manager

Assistant Manager

Sales executive

Office assistant

Management Project

DEPARTMENTS

MARKETING DEPARTMENT

In the department of marketing, are controlled and supervised by

marketing manager in the consultation with general manager. This marketing

department performs a lot of activities viz. pricing selection of suitable distribution

policies & some promotional policies such as price discounts, gifts etc …

STRUCTURE OF MARKETING DEPARTMENT


AssistantManager

Executive officer

Office assistant

Clerk

Management Project

FINANCE DEPARTMENT

The success of every organization is good and efficient finance

department. KSE limited has a good financial department & they allocate all purchasing

efficiently that lead to improve market share & increase profit.

STUCTURE OF FINANCE DEPARTMENT


Company secretary -cum- general manager

Purchase Manager

Executive officer

Officer

Office assistant

Clerk

Management Project

PURCHASE DEPARTMENT

The purchase department consists of the manager, assistants &

store keeper .They is responsible for all the purchases. Including raw materials for

production, office stationeries & other maintenance related purchase in KSE limited.

The purchase department will have to convince of requirements before the articles &

procured. This policy ensures less revenue loss due to unnecessary & unplanned

purchase activities.

STRUCTURE OF PURCHASE DEPARTMENT


Management Project

FUNCTION OF PURCHASE DEPARTMENT

What to purchase? When to purchase? Where to purchase? How much to purchase? At what price to purchase?

PRODUCTION DEPARTMENT

Production department are heard by plant supervisor. The main function of production

department in manufacturing of various types of milk products, which is having better

demand from the customers both from Kerala and national market.

PRODUCTION FUNCTION

Improving volume of production

Controlling idle time of workers

Minimizing work rates


Production manager

Assistant Manager

Stores officer

Store supervisor

Store clerk

Management Project

STRUCTURE OF PRODUCTION DEPARTMENT


Worker

Management Project

1. EXPERIENCE WITH KS MILK DEALERSHIP

TABLE NO: 1

Options No. of respondents percentage

Less than 5 years 5 4

5 years 15 12

5-10 years 50 38

More than 10 years 60 46

Total 130 100

FIGURE NO: 1

4%

12%

38%

46% Less than 5 years5 years5-10 yearsMore than 10 years

INTERPRETATION

From the above table and diagram it is clear that out of 130 dealers 46% of dealers are

having more than 10years of experience ,38% of dealers have upto 5-10years of

experience with KS milk,12% have only 5 years of experience and 4 % have upto less

than 5 years of experience .


Management Project

2. OUTLETS

TABLE NO: 2


Milk booth - -

Bakery 70 54

Provisional store 30 23

General store 30 23

Total 130 100

FIGURE NO: 2

54%

23%

23%

Chart Title

Milk boothBakeryProvisional storeGeneral store

INTERPRETATION

From the above table and diagram it is clear that among the 130 dealers 54%are

bakeries ,the other 23% are provisional and general store . No milk booth is available as

dealers of KS milk.


Management Project

3. REASON FOR PURCHASING FROM KS

TABLE NO: 3


More commission 15 12

Customers request 20 15

Good quality 35 27

All the above 60 46

Total 130 100

FIGURE NO: 3

12%

15%

27%

46%

Chart Title

More commissionCustomers requestGood qualityAll the above

INTERPRETATION

The above table and diagram shows the reason for selling KS milk .Majority of dealers

said that they sell it due to 3 reasons they are more commission, good quality and

customers request. The next 27% of dealers told that they sell KS milk due to the good

quality of the product.


Management Project

4. OPINION ABOUT THE COMMISSION FROM THE COMPANY

TABLE NO: 4


Highly satisfied 15 12

Satisfied 115 88

Dissatisfied - -

Highly dissatisfied - -

Total 130 100

FIGURE NO: 4

12%

88%

Chart Title

Highly satisfiedSatisfiedDissatisfiedHighly dissatisfied

INTERPRETATION

From the above table and diagram it is clear that majority of dealers that is 88% are just

satisfied with the commission provided by the company and only 12% of dealers are

highly satisfied with the commission provided by the company .The commission

provided by the company is 70ps for 1 packet of milk.


Management Project

5. CUSTOMERS SATISFACTION

TABLE NO: 5


Yes 130 100

No - -

Total 130 100

FIGURE NO: 5

100%

Chart Title

YesNo

INTERPRETATION

From the above table and diagram it is clear that the customers of KS milk are highly

satisfied with the product. All the 130 dealers in Trissur town said that customers buy

this product due to its quality and there is a high sales movement for KS milk compared

to other brands of milk.


Management Project

6. OTHER BRANDS THAT DEALERS DEAL

TABLE NO:6


Milma 54 41

PDDP 10 8

Both 25 19

others 41 32

Total 130 100

FIGURE NO: 6

42%

8%19%

32%

MilmaPDDPBoth others

INTERPRETATION

The above table and diagram it is clear that majority of dealers deal with Milma because

beside KS milk Milma is the another brand of milk that high sales movement in the

market. PDDP does not have that much sales movement so only 8% of dealers deal with

PDDP.


Management Project

7. OPINION ABOUT THE PRICE OF KS MILK

TABLE NO: 7


Very good 46 35

Good 53 41

Satisfactory 31 24

Poor - -

Total 130 100

FIGURE NO: 7

35%

41%

24%

Very goodGoodSatisfactoryPoor

INTERPRETATION

The above table and diagram shows the idea of dealers about the price of KS milk.

Among the 130 dealers 41%of dealers reported that the price of the product is good they

said that because of the quality of the product .35% of dealers said that the price of the

product is low so that there is no problem to deal with the product.


Management Project

8. SALE OF MILK PER DAY

TABLE NO: 8


20 packets - -

20-40packets 5 4

40-60packets 24 18

More than 60 packets 101 78

Total 130 100

FIGURE NO: 8

4%

18%

78%

20 packets20-40packets40-60packetsMore than 60 packets

INTERPRETATION

The above table and diagram depicts the sale of the product per day. Among the 130

dealers 78% of dealers sell more than 60 packets per day that may be upto 200 or 500

packets .


Management Project

9. REASON TO BE A DEALER OF KS MILK

TABLE NO:9


Promotional scheme - -

Quality 49 38

Company’s policy 37 28

margin 44 34

Total 130 100

FIGURE NO: 9

38%

28%

34% Promotional schemeQualityCompany’s policymargin

INTERPRETATION

The above table and diagram is talking about the main factors enabling the dealers to be

the KS milk dealers ,most of the dealers prefer on quality to be first factor. About38%

of the dealers are dealing KS milk products for its quality and 28% are for company

policies. The rest 34 % of the dealers voted for margin. Though the dealers prefer

quality and margin as a main factor.


Management Project

10. OPINION ABOUT CREDIT PERIOD

TABLE NO: 10


Very good 9 7

Good - -

Satisfactory - -

poor 121 93

Total 130 100

FIGURE NO: 10

7%

93%

Very goodGoodSatisfactorypoor

INTERPRETATION

The above table and diagram shows degree of dealers satisfaction on the credit period

allowed by the company to them .Most of the dealers rated it as poor because the

company only provide credit to the dealers who make bulk purchases.


Management Project

11. HOME DELIVERY SERVICE

TABLE NO: 11


Yes 61 47

No 69 53

Total 130 100

FIGURE NO: 11

47%

53%YesNo

INTERPRETATION

The above table and diagram shows the home delivery services provided by the dealers.

About 53% of dealers does not provide home delivery services. The rest 47% of dealers

provide home delivery .Bakeries are the main outlets which provide home delivery

services.


Management Project

12. CUSTOMERS PREFERENCE OTHER THAN KS MILK

TABLE NO: 12


Milma 54 42

PDDP 12 9

Sakhti 14 11

Others 50 38

Total 130 100

FIGURE NO: 12

42%

9%11%

38%MilmaPDDPSakhtiOthers

INTERPRETATION

The above table and diagram shows the preferences of customers other than KS

milk.42% of dealers responded that majority of customers prefer Milma .38% dealers

said that the customers prefer other brands rather than Milma, PDDP and Sakhti.


Management Project

13. VARIETIES OF KS MILK PRODUCTS SOLD BY DEALERS

TABLE NO: 13


KS butter milk 11 8

KS curd 54 42

KS ghee 20 15

All the above 45 35

Total 130 100

FIGURE NO: 13

8%

42%

15%

35%KS butter milkKS curdKS gheeAll the above

INTERPRETATION

The above table and diagram shows that majority of dealers sell KS curd because of

customers request and it has a high sale volume than the other products.35% of dealers

sell all the KS milk products .Only a small portion sell butter milk and ghee.


Management Project

14. SALES MOVEMENT OF KS MILK

TABLE NO: 14


Excellent 37 29

Very good 45 35

Good 24 18

Average 24 18

Total 130 100

FIGURE NO: 14

28%

35%

18%

18%

ExcellentVery goodGoodAverage

INTERPRETATION

The above table and diagram depicts the sales movement of KS milk according to the

dealers .Majority of dealers said that the sales movement of the product is very good.

Because of the quality and goodwill of the company customers prefer KS milk more so

the sales is fast.


Management Project

15. ATTRIBUTE THAT INFLUENCE THE CUSTOMERS

TABLE NO: 15


Price 22 17

Quality 42 32

Availability 26 20

Brand image 40 31

Total 130 100

FIGURE NO: 15

17%

32%

20%

31%

PriceQualityAvailabilityBrand image

INTERPRETATION

The above table and diagram shows the attributes that influence the customers to buy

KS milk. Majority of the dealers said that the customers buy the product due to the

quality of the product.31% of dealers reported that the customers prefer the product due

to the brand image .The rest 20% and 17% of dealers said that the customers prefer it

because of the availability and price.


Management Project

16. PROBLEM FACED BY DEALER

TABLE NO: 16


Bad packaging - -

No prompt delivery - -

Insufficient delivery - -

No problem 130 100

Total 130 100

FIGURE NO: 16

100%

Bad packagingNo prompt deliveryInsufficient deliveryNo problem

INTERPRETATION

The above table and diagram shows the problems faced by the dealers .The 130 dealers

in Trissur town said that they don’t face any problem with the dealership of the

company.


Management Project

17. SERVICES EXPECTED BY THE DEALER

TABLE NO: 17


Sales follow up - -

After sales service 30 23

Credict facility 35 27

Seasonal offers 65 50

Total 130 100

FIGURE NO: 17

23%

27%

50%

Chart Title

Sales follow upAfter sales servicesCredict facilitySeasonal offers

INTERPRETATION

The above table and diagram shows the services expected by the dealers. About 50% of

dealers expect more seasonal offers during the monsoon season when the availability of

milk is low. The other 23%and 27% of dealers expect services and credit facilities.


Management Project

18. TIMELY SUPPLY

TABLE NO: 18


Yes 130 100

No - -

Total 130 100

FIGURE NO: 18

100%

YesNo

INTERPRETATION

The above table and diagram reveals the timely supply of the product to the dealers.

Here all the dealers are satisfied with the timely supply of the product. All the dealers

receive the product at the expected time and quantity.


Management Project

19. OPINION ABOUT THE PROMOTIONAL ACTIVITIES

TABLE NO: 19



Satisfied 119 92

Dissatisfied - -


Total 130 100

FIGURE NO: 19

8%

92%


INTERPRETATION

The above table and diagram shows that 92% of dealers are just satisfied with the

promotional activities. According to their opinion the promotional activities are still to

be improved.


Management Project

20. TIME OF SALE

TABLE NO: 20


Morning 45 35

Evening 36 27

Both times 30 23

No specific time 19 15

Total 130 100

FIGURE NO: 20

35%

28%

23%

15%

MorningEveningBoth timesNo specific time

INTERPRETATION

The above table and diagram shows the time of sale made by the dealers.34% of dealers

said that the sale is made in the morning hours because everyone need milk at the

specific of time.27% of dealers reported that they got the sale at evening time as Trissur

is a busy town area every one buy milk at that time for their convenience.


Management Project

21. STORAGE FACILITY

TABLE NO: 21


Yes 130 100

No - -

Total 130 100

FIGURE NO: 21

100%

YesNo

INTERPRETATION

The above table and diagram reveals the storage facility of the dealers .All the dealers

have their own storage facility as milk is a perishable food item. Most of the dealers

have small refrigerators for storage.


Management Project

22. OPINION ABOUT THE SERVICES PROVIDED BY THE

COMPANY

TABLE NO: 22



Satisfied 100 77

Dissatisfied - -


Total 130 100

FIGURE NO: 22

23%

77%


INTERPRETATION

The above table and diagram reveals the satisfactory level of the dealers about the

services provided by the company. Majority of the dealers are satisfied with the services

provided by the company .Only 23% of dealers are highly satisfied with the services.


Management Project

23. OPINION ABOUT PACKAGING OF THE PRODUCT

TABLE NO: 23



Satisfied - -

Dissatisfied - -


Total 130 100

FIGURE NO: 23

100%


INTERPRETATION

The above table and diagram reveals the packaging of the product .All the 130 dealers

are highly satisfied with the packaging of the product because the material used for the

packing is of high quality .The packets does not show any type of damages.


Management Project

24. DEALERS ATITUDE TOWARDS SALES PROMOTIONAL

ACTIVITIES

TABLE NO: 24


Free samples - -

Coupons - -

P.O.P displays 23 18

None of the above 107 82

Total 130 100

FIGURE NO: 24

18%

82%

Free samplesCouponsP.O.P displaysNone of the above

INTERPRETATION

The above table and diagram reveals the sales promotional activities of the company.

Only a small portion of dealers said that the company uses Point of Purchase displays

for sales promotion. Majority of dealers said that there is no such sales promotion is

conducted by the company.

25. DEALERS MEETING


Management Project

TABLE NO: 25


Yes - -

No 130 100

Total 130 100

FIGURE NO: 25

100%

YesNo

INTERPRETATION

The above table and diagram reveal about the dealers meeting conducted by the

company. All the dealers reported that the company does not conduct dealers meeting.

FINDINGS


Management Project

1. The dealers have considerable experience and their answers are valued much and

their statements were very much helpful for the analysis.

2. The quality of the K.S .milk is found to be satisfied by most of the dealers selling

this brand.

3. The main outlets of company are bakeries.

4. Most of the dealers are just satisfied with the commission provided by the

company.

5. Majority of the dealers feel that supply facility as excellent.

6. The sale of KS milk per day is excellent. The dealers sell more than 150 packets

of milk per day.

7. Most of the dealers feel that the service provided by the firm is average.

8. Most of the dealers feel that the price of milk is good.

9. KS milk is offering credit facility but most of the dealers are not satisfied.

10. Quality and margin are the main factors which enable the dealers to be dealer of

KS milk.

11. All the dealers have their own storage facility.

12. Among the different KS milk products KS curd have high sales.

13. Dealers does not face any problem with the company.

14. Dealers meetings are not conducted by the company so the dealers find it difficult

to express their views

15. Packaging of the product is excellent.

16. Customers prefer this product due to the high quality and brand image.

17. Sales promotional activities provided by the company is not enough.

18. Dealers expect more seasonal offers and services from the side of the company.

19. Milma is the main competitor of KS milk.

20. The supply of the product is timely.

21. 77% of dealers are just satisfied with the services provided by the company.

Services provided by the company are yet to be improved.

SUGGESTIONS


Management Project

1. Try to increase the amount of sales promotion activities such as advertisements.

2. Try to provide better service and schemes. The company can provide bonus to the

dealers at the time of festivals.

3. Step should be taken to make KS milk available at all places.

4. Try introducing new product into the market. They can introduce flavored milk in

the market which may attract children .They can introduce cheese and butter into

the market.

5. Dealers meeting should be conducted yearly.

6. They should try to introduce other types of packing. They can introduce bottle

milks so that it may be more convenient in handling.

7. The company should provide credit facilities to the dealers.

CONCLUSION


Management Project

The study has helped the researcher a great deal in getting through

knowledge of the marketing and system of distribution, competition and general

trends .the study has been useful to acquire a practical experience a part from the

theoretical knowledge.

The study certainly proved that KS Milk can improve their market share.

Though KS Milk enjoys the brand image, it certainly has to work up on the service and

other aspects so as to remain in that position. Even though KS Milk has a certain

negative aspects. It still can emerge as the top brand with certain adjustment in the

existing policies and strategies.

BIBLIOGRAPHY


Management Project

BOOKS:

Author : C.R KOTHARI

Book : Research Methodology, methods and

Techniques

Publisher : New Age International (p) ltd Publisher

Second Revised Edition: 2004

JOURNALS : Annul report

WEBSITES

Department of the company;

Date : 17/07/2012

Time : 10.15 am

http://www.google.com

Date : 1/8/2012

Time : 10.20 am

http://www.kselimited.com

Date : 1/8/20/12

Time : 11.00 am

QUESTIONNAIRE


Management Project

1. How long have you been dealing with KS products?

Less than 5year 5years

5-10years More than 10 years

2. What business do you do?

Milk booth Bakery

Provisional store General store

3. What is the reason for purchasing from KS?

More commission Customers request

Good quality All the above

4. Are you satisfied with the commission from the side of the company?

Highly satisfied Satisfied

Dissatisfied Highly Dissatisfied

5. Do you think that the customers are satisfied with the KS milk products?

Yes No

6. Which brand of milk do you sell other than KS?

Milma PDDP

Both Others

7. What do you feel about the price of KS milk products?

Very good Good


Management Project

Satisfactory Poor

8. How much quantity of milk do you sell per day?

20 packets 20-40 packets

40-60 packets More than 60 packets

9. Which factor enables you to be the dealer of KS milk products?

Promotional scheme Quality

Company’s policy Margin

10. What do you feel about the credit period given by the company?

Very good Good

Satisfactory Poor

11. Do you provide home delivery service?

Yes No

12. Which brand of milk do customers prefer more than KS?

Milma PDDP

Sakthi Others

13. What are the different varieties of KS milk that you sell?

KS butter milk KS curd

KS ghee All of them

14. How do you rate the sales movement of KS milk?

Excellent Very good


Management Project

Good Average

15. What is the most important attribute that influence the customers?

Price Quality

Availability Brand image

16. What type of problem do you face in the delivery and purchase of KS milk?

Bad packing No prompt delivery

Insufficient delivery No problem

17. What are the services that you expect from the company?

Sales follow up After Sales Services

Credit facility Seasonal offers

18. Whether the expected quantity of KS products is supplied to you in time?

Yes No

19. What do you feel about the promotional activities provided by the company?



20. During which period of time do customers prefer the product?

Morning Evening

Both times No specific time

21. Do you have own storage facilities?

Yes No


Management Project

22. Are you satisfied with the services provided by the company to the dealers?



23. Are you satisfied with the packaging of KS milk?



24. Do you know which sales promotional activities does the company undertake for

KS milk?

Free samples Coupons

P.O.P displays None of the above

25. Is there dealers meeting conducted by the company?

Yes No

THANK YOU


Management Prjct KSE

Documents

Transcript of Management Prjct KSE