uuu

SUMMER TRAINING REPORT

ON

“Study of consumer Perception/Behaviour about

Verka products”(KHEER)

Submitted in partial fulfillment of the requirements for the degree of Master of business administration (2010-2012) affiliated to Punjabi University, PATIALA

Project Guide SUBMITTED BY

Ms,…………………… Gurpeet Singh sandhu

Faculty of Management MBA 3rd

CBS, Mohali Roll No.:-………..

1

ACKNOWLEDGEMENT

I would like to thank General Manager Verka Milk Plant, Mohali, for

providing me this wonderful opportunity to work with ‘Roper Distt. Milk

Producers Union Cooperative Ltd.’

I am extremely thankful to In-charge (Marketing MR………………. and

entire marketing division for their invaluable support and inputs in this

project.

I extend my sincere gratitude to various respondents and citizens of Mohali

who spared their valuable time and contributed to consumer survey.

GURPREET SINGH

2

DECLARATION

I undersigned here by declare that the summer training project report

submitted to my college .CHANDIGARH GROUP OF COLLEGES.

In partial fulfillment for the degree of master of business

administration on “study of consumer Perception about Verka

products(KHEER)” is a result of my own work under continous

guidance and kind co-operation of our college faculty member Ms.

Mandeep mahendru. I have not submitted this training report to any

other university for the award of degree.

GUNDEEP SINGH

3

CERTIFICATE OF COMPLETION

This is Certify that Mr. GURPREET SINGH SANDHU MBA (3rd

Semester) has successfully completed her project titled “Study of consumer

behaviour about verka products”(kheer) under the guidance of Ms.

…….. This is in the partial fulfillment of her MBA curriculum (2010-2012)

Dated:

Ms. ……………

(Project guide)

4

PREFACE

For management careers, it is very important to develop managerial skills .In

order to achieve positive and concrete results, along with theoretical

concepts, the exposure of real life situation existing in a corporate world is

very much needed. To fulfill this need, this type of practical training is

required.

I underwent summer training in VERKA MILK PLANT, located in Mohali.

It was my fortune to get training in a very healthy company. I got great

opportunity to view the overall working of the organization. In the

forthcoming pages, I have attempted to present a report covering different

aspects of my training.

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EXECUTIVE SUMMARY

Customers today are more informed and more demanding than ever. They

know quality service when they get it and they aren’t afraid of taking their

business elsewhere if they don’t get it. Most manufacturers have taken this

fact to heart because a refusal to acknowledge this reality can spell - failure -

rejection by the one who holds the purse strings and the key to profits.

Satisfaction of customer needs, in fact, provides a rationale for the

firm’s existence. Therefore consumer behavior lies at the heart of modern

marketing and its knowledge is vital for a firm’s existence, growth and

success. An understanding of the motives underlying the consumer behavior

helps a firm to seek better and more effective ways to satisfy consumers.

Consumer behavior, however, is a complex system where there is an

interaction of various social, economic and psychological factors. All these

factors affect the purchase decision of the buyer and his perception about

different products. Buying decision process incorporates all the activities

that individuals go through in their role as consumers. It starts right from the

time when there is a state of deprivation (need arousal) and goes through a

point when a means of need satisfaction has been obtained. It ends at a

juncture when the product has been used for a sufficiently long period of

6

time to judge the level of satisfaction (post - purchase evaluation).

Satisfaction is the key to generate repeat business. It ensures customerloyalty

and determines whether a customer would come to the company again.

TABLE OF CONTENTS

Chapter No. Contents Page No.

1. Introduction

1.1 Industry profile (Milkfed)

1.2 Objectives

1.3 Company Profile (Verka)

8-37

8-14

15-37

2. Review of literature 38-41

3. Research Methodology 42-48

4. Data analysis & Interpretations 49-61

5. Conclusion 62-63

6. SWOT Analysis 64-66

7. Suggestions and recommendations 67-71

8. Bibliography 72-73

9. Annexure 74-78

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CHAPTER NO. 1

INTRODUCTION

8

1.1 MILKFED-PUNJAB

(Introduction)

The Punjab State Cooperative Milk Producers’ Federation Limited popularly

known as MILKFED Punjab, came into existence in 1973 with a twin

objective of providing remunerative milk market to the Milk Producers in

the State by value addition and marketing of produce on one hand and to

provide technical inputs to the milk producers for enhancement of milk

production on the other hand.

Although the federation was registered much earlier, but it came to real self

in the year 1983 when all the milk plants of the Punjab Dairy Development

Corporation Limited were handed over to Cooperative sector and the entire

State was covered under Operation Flood to give the farmers a better deal

and our valued customers better products. Today, when we look back, we

think we have fulfilled the promise to some extent. The setup of the

organization is a three tier system, Milk Producers Cooperative Societies at

the village level, Milk Unions at District level and Federation as an Apex

Body at State level. MILKFED Punjab has continuously advanced towards

its coveted objectives well defined in its byelaws.

1.2 Objectives of MILKFED

9

1. To provide remunerative prices to milk producers by value addition and

marketing of produce.

2. To provide technical inputs for enhancement of milk production on the

other hand.

3. To carry out activities for promoting production, procurement processing

and marketing of milk and milk products for economic development of the

farming community;

4. To purchase and/or erect buildings, plants, machinery and other ancillary

equipment to carry out business;

5. To study problems of mutual interest related to production, procurement

and marketing of dairy and allied products;

6. To establish research and quality control laboratories;

7. To make necessary arrangements for transfer of milk allied milk products

and commodities;

8. To market its products under its own trade name/brand name with its

Member Union’s trade mark/brand;

9. To promote the organization of primary societies and assist members in

organization of the Primary Societies; and

ACHIEVEMENTS

10

On the basis of quality with efficient administration, MILKFED has not only

established new mile stone of providing services to Dairy farmers but scaled

new heights in delighting esteemed customers also.

1. MILKFED is providing technical input services like animal healthcare,

supply of quality cattlefeed, fodder seeds etc. at the door steps of the dairy

farmers under its Productivity Enhancement Programme.

2. For producing quality technical services MILKFED has established its

own two cattle feed plants having capacity of three hundred metric ton per

day.

3. During the last 3 years, 8 Milk Plants and 2 Cattle Feed Factories of

MILKFED, Punjab were accedited with ISO9002 and IS-15000 (HACCP)

Certification.

4. In view of today's interest of consumers in getting quality and safe

products, MILKFED is manufacturing quality milk and milk products as per

International Standards and also exploring the possibility of manufacturing

milk products of consumer's choice.

5. MILKFED has launched its own interactive Website on Internet for its

prospective customers which can be accessed by clicking

http//www.milkfed.nic.in

6. MILKFED introduced liquid milk in new design packing with Mnemonic

Symbol of Co-operative Milk in all the District Milk Unions.

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Critical analysis of Milk fed

Corporate Focus

MILKFED is serving the cause of Milk producers of the state in

collaboration with National Dairy Development Board by increasing the

number of functional MPCSs from 4642 in 1990-91 to 6248 in 2000-01 and

their membership rose by 90000 from 2.63lac in 1991 to 3.53lac during the

same period. This has resulted in increase of milk procurement from 1438lac

in 1991 to 3371lac liter in 2000-01. However, rehabilitation plan of sick

Milk unions has yet to reach the implementation stage.

Strength/Care Competency/Opportunities:

MILKFED earned a net profit of Rs.3.19crore in 2000-01. Its core

competency in marketing of Milk &Milk products by creating a marketing

infrastructure is serving a social purpose by providing income to land-less

laborers small and marginal farmers scheduled caste families and households

headed by women having just one or two cattle only as nearly 90% of the

member of Milk producer’s Cooperative Societies belong to these categories

12

(Annexure 20) “Operation Flood” programmed of dairy development is

implemented by it in the state.

MILK VISION 2004 to stabilize the gap between Milk procured during peak

seasons and lean season has been drawn by MILKFED to optimally utilize

Milk plants for reducing their losses. Moreover, Model diary farms in

collaboration with Technology information and Assessment Council

(TIFAC) are being developed by it at a capital outlay of Rs.2.00crore.

Restructuring/revival

Export Ropar and Ludhiana Milk unions the remaining 9 unions are

incurring losses. Their combined accumulated looses are Rs.76.33crore as

on 31-03-2001. This way, cooperative Milk union’s structure of MILKFED

is losing its commercial viability over the last two years by restricting itself

to the sale of Milk and Milk products only and not exploiting its well

developed procurement sale and supply distribution channels to market fresh

vegetables and fruits along with processing and procurement of oil seeds. To

make these plants viable and socially sustainable the introduction of latest

technology in Milk; plants and full exploitation of its marketing strength in

procurement and marketing network is the need of the hour. MILKFED is a

vital mechanism for more them one reason in the Punjab context. First and

foremost it is engaged in raising the viability of Agriculture of the

small/marginal farmers. Landless labors, families with no male earners and

the scheduled castes. It is therefore of utmost importance that the

13

Government of Punjab make its due contribution for the purpose of

leveraging finances or the National Dairy Development Board and other

cooperative institutions. Infect, If necessary Government should get District

Milk Union Cooperative so that hitherto slow extension is intensified and

the

maximum potential for cost reduction is achieved. The other important

reason for Government to support this activity even by subsides to induce a

shift out of the paddy- wheat rotation by encouraging the cultivation of

better seeds vegetable, Fruits and eventually oil seeds and meat products.

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1.3 INTRODUCTION &

GENERAL FEATURES OF MILK PLANT MOHALI

NAME: Verka Milk Plant.

ADDRESS: Verka Milk Plant

PHASE 6, Mohali

RAW MATERIAL: Milk.

PRODUCTS: Special kheer,Ghee, Pasteurized milk,

Curd, Cheese,

Milk Cake, Sweet flavored milk,

WORKING HOURS: 24 hours (3 shifts).

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TOTAL WORKERS: 163.

Capacity 1 Lakh Ltrs per day.

PROFILE OF THE UNIT

The elegant building situated on …….road just before we enter phase 7 is

that of Milk Plant owned by The mohali District Co-operative Milk

Producers Union Ltd. Its foundation stone was laid by India’s Home

Minister Mrs. Uma Shanker Dixit in 1973. It started its production in 1979.

Its name was registered as “The Mohali Distt. Co-operative Milk

Producers Union Ltd. mohali”. It has been registered under Punjab Co-

operative Societies Act 1961 on 24 March 1973. This union started its milk

procurement from March 1974.

The union is working under the laws of act. In the beginning 13 societies

became its members. But this union started as milk procurement from 1974.

Initially its office was situated on the upper side of co-operative bank of

Barnala. At that time Milk Plant was not properly made. Initially the

societies of nearest circle were started, after this it was expanded and centers

were approved at other places. At that time this union collects milk from

other societies and to Horlicks. Before it, except Horlicks there was no

major buyer of milk and Horlicks was a private concern giving low rates.

16

After that the union was strengthened and milk producers got benefited by

this union as they were getting reasonable rates for their from. A project

report of Milk Plant mohali was made at that time with shares from

different societies were to be collected and it includes Rs 100 share money

and Rs 5 admission fees, 15 lack Rs were to be collected and in this manner

and the share of government was fixed at Rs 40 lack.For the smooth running

of the plant, the union had taken loan of worth Rs 62 lack from Co-operative

Development Corporation. By this loan a milk plant was established. It

started milk of 45000 liters per day in December 1979 further it was

expanded with the help of National Diary Development Board at ANAND

under the “Operation Flood” programmed. After few years a drier was

installed with a capacity of 10 tones. For the purchase of this machinery

70% of loan was taken from NDDB and 30% loan from government in the

form of subsidy. The total investment in the plant was 6.5 crores.

LOCATION AND LAYOUT

In the milk plant there are hard receiving departments: Production and

Engineering. The location of the stores department is carefully planned out

and it is housed in a position which is very near to production department so

that transportation charges are minimum. It is also easily accessible to all

other departments like engineering, boiling, refrigeration, powder plant and

workshop.

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The layouts of plants store is properly planned. There are shelves,

racks, admirals and handling devices for keeping the material and

equipments properly. The store is divided into racks which are further sub-

divided into small spaces allocated. Special attention is paid to storage of

material which is liable to leakage or evaporation and deterioration.

SELECTION OF ROUTES:

Routes are selected for the delivery of kheer through these societies. Shortest

milk routes are preferable so that kheer reach to target market in same

condition, otherwise kheer can become sour . The societies which are far

away from milk plant, the four milk chilling centers are established for them.

Societies send milk directly to milk plant or through chilling centers. These

chilling centers chill milk at 4 degree Celsius which keeps the milk in good

condition for 24 hours. After chilling the milk these centers send milkto the

milk plant.

REGISTERATION OF THE SOCIETY AND THE

MEMBERS:

When a society is fully formed for the collection of milk it is registered

under the registration act of societies. Its members are also registered and

given members pass books and share certificates. A copy of rules and

regulations are also given to them. Then the actual milk collection starts.

MILK PROCUREMENT IN DIFFERENT SEASONS

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Milk Plant Sangrur procures milk in three seasons. First comes the lean

season i.e. the months of May. June, July and August. In this season milk is

available in very low quantity i.e. 25000 liters per day. The second season is

mid-season i.e. the months of March, April, September and October. In this

season the procurement of milk is about 50000 liters per day. The most

awaiting season is flush season i.e. the months of November, December,

January and February. In this season the procurement of milk is maximum

i.e. 65000 liters.

MILK PROCUREMENT IN LAST 7 YEARS:

Year saver age milk procurement per day (in liters) total milk handling.

2001- 85000 liters per/day





2006-65000 liters per/day

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2008- 62000 liters per day

MAIN CENTRES AND THEIR BRANCHES:

About 300 milk producing societies come under Milk Plant mohali which is

operating in the whole mohali district. All these are divided into six main

centers which are as under:

LOCAL MOHALI 140

ROPAR 50

LUDHIANA 30

SIRHIND 30

CHANGALIWALA 30

SANDHORE 20

(A) MILK PROCUREMENT PER DAY

NAME OF THE SOCIETYMILK PER DAY (in liters) Local MOHALI

40000 Sehna 8000 Mehal Kalan 5000 Chanhaliwala 7000

(B) PRODUCTION

20

Production is the foundation on which every organization is built.

Production is an internal act of producing something in an organized

manner. It is the fabrication of a physical object through the use of men,

material and equipment. Thus the basis of production is the transformation

of inputs into goods and services. In milk plant MOHALI two different

plants are established for the production of KHEER and SMP. These are

called:

1. Powder Plant.

2. Production plant.

In powder plant Skimmed Milk Powder is prepared from spreta milk which

comes from production department. In production plant KHEER is prepared

from milk. Here pasteurized milk is also prepared. Sometimes milk cake is

also prepared according to its requirement. In addition to it there are

arrangements for filling sweet milk bottles. Powder and KHEER are made

only in flush season when milk is available in large quantity. In lean season

production fails because of non-availability of milk. In months of May, June,

August is done; sometimes glucose is made here on contract basis.

(C) QUALITY CONTROL

Quality control includes techniques and systems for the achievement of the

required quality of the raw material as well as final products. Most often

milk vendors adulterate the milk in such a way that normally consumers are

21

to be fooled. Consumers remain obvious to the various ways and means

adopted by milk vendors to adulterate milk. Here are some eye openers:

1. Urea, caustic soda and salt are added to thicken the milk.

2. Milk powder is also used for thickening and usually the powder used

is sub-standard.

3. Synthetic milk is added to pure milk to increase the quantity.

4. Sometimes pure milk is separated, the cream is removed and the

skimmed milk powder is added to it.

(D) ACCOUNTING :

Accounting is the art of recording, classifying and summarizing in a

significant manner, and in terms of money transactions and events which

are in part at least of financial character and interpreting the results thereof.

In milk plant MOHALI this section performs the functions of maintaining

the accounts of stores material and milk products by union and to make

payments at right time. Like this to maintain the accounts of milk and milk

products sold by the union and to receive the payment for goods sold to

consumers, concerned sections and branches. The bills are prepared by

accounts branch according to 10 days milk purchase from producers and

societies. It is the duty of this section to maintain the accounts according to

22

rules and regulations mentioned by Registrar Co-operative Department and

to follow the restrictions and suggestions imposed by auditor.

(E) MARKETING

Milkfed Punjab is serving nationwide consumers through its network of

regional offices and strong distribution channels. Milkfed markers a wide

variety of products liquid milk, skimmed milk powder and many more.

ACHIEVEMENTS

Milk Procurement: -

Milk Plant procured about 55,000 Lt. of milk per day through 19 Milk routes

in the Flush Season.

Animal Health Care & Other Technical Inputs: -

In addition to Organizing the remunerative Milk market system Through

milk producers cooperative societies, Milk Plant is also providing regular

health coverage by running 2 vet nary routes and 55 Artificial Insemination

Service Stations at Society level.

23

Genetic Improvement of Milch Animals Under this, lay inseminators are

trained who are in-turn, doing Artificial Insemination at the door steps of

Dairy Farmers.

Supply of Balanced Cattle Feed: -

Special attention has been paid to the supply of balanced cattle feed to the

milk producers so as to enhance the milk production. Four types of cattle

feeds are being supplied i.e. ISI Type, High Energy, Bye Pass Protein Feed

& Buffalo super feed to meet the requirements of Milk Producers.

Supply of Improved Varieties of Fodder Seeds: -

Cows does not produce ample milk without ample fodder. Through research

and seed-farms, Milkfed has worked t provide the farmers high yielding

forages at low cost. Fodder Development activities initiated by Milkfed have

created a good demand for improved fodder seeds in Punjab. Milkfed

established its own seed processing unit in 1985, the unit is automated and

has the capacity to grade 16 million tons of fodder seed per day.

Quality Assurance Program:

Quality Assurance Program (QAP) which is a part and parcel of Dairy Plant

Improvement Program (DPIP) was taken up in Ludhiana Milk Union with

24

the Technical guidance from NDDB. The main objective of the program is

to improve efficiency of Plants coupled with loss management to bring

down the cost of production, improve the quality of milk and milk products

manufactured to ameliorate the general hygienic and house keeping

standards and above all to enhance the profitability and financial viability of

the Milk Plants to enable milk producers to get better price for their produce.

MAIN PRODUCTS MANUFACTURED BY MILK PLANT

The main products which are manufactured by the milk plant

MOHALI are as under:

1. KHEER.

2. Pasteurized Milk.

3. Milk Powder.

4. Sweetened Flavoured Milk (PIO).

5. Milk Cake.

6. Cheese.

7. Curd.

MARKETING DEPARTMENT

25

According to Prof. Phillip Kotler”Marketing is the human activity

directed as satisfying need and wants through the exchange process”.

Marketing is the process through which producers and consumers of various

goods are brought together in an exchange relationship and the transfer of

ownership takes place. Marketing process starts even before the goods go

into production. It does not end with sale but continues till the satisfaction of

consumer is obtained.

To carry out selling functions, it is important to have a qualified and

expressed sales force with leader who can plan, organize, direct and control

the selling job objectivity. The salesman is an extremely important link in

the claim of distribution. It is sometimes said that salesmanship is the other

name of persuasion.

MARKETING STRATEGIES Section of Milk Booths/Agencies Security

Money Refundable Agency Rs. 5000 Full time booths Rs. 10000 Part time

booths Rs. 3000 Institutions 45 days advance payment

MARKETING MEASURES FOR DOMESTIC MARKET:

For domestic market following measures are taken up by marketing

personnel:

26

A. Dealers” meeting is called once in every six months.

B. The plant has own distribution network for the sale of products.

C. Milk products are marketed to bring up country markets through out

India on consignment basis.

FOR INTERNATIONAL MARKET:

For Export following measures are taken into consideration:

A. Requirement is given by customers in the letter of credit.

B. Quality should be mentioned.

DOMESTIC MARKETING ACTIVITIES

The domestic marketing activities are performed on the basis of

Demand and Supply. Demand for milk and milk products are received in

two ways:

Through Telephone-

Any demand or change in demand is received between 9:30 am and 2:00

pm.

Through Supply-

27

Milk booths collect demand according to milk supplied to the agencies.

About 70% of milk is distributed in the morning and remaining 30% is

distributed in the evening.

PAYMENT AND BALANCE SYSTEM

Since agency is required to deposit one day advance payment separately for

morning and evening, if any cash balance remains with the union that is

admitted in the meant supply payment.

For institutions 45 days of advance payment against their demand is

collected union.

RETURN OF MILK

If milk is found leaked. It is taken back from dealers only at the time

of delivery. One entire tray is provided for replacement of leakage of every

truck or other vehicle through which milk is supplied to the dealers.

Marketing is a comprehensive term and it includes all resources and a

set of activities necessary to direct and facilitate the flow of goods and

services from producers to consumers in the process of distribution.

Marketing is the process of planning and executing the conception, pricing,

28

promotion and distribution of ideas, goods and services to exchange that

satisfy individual and organizational objectives.

ROLE OF MARKETING IN VERKA MILK PLANT

Head Office collects this information from all the plants and scrutinizes the

information that which plant has large stock of products and who is lacking

in it. Then it gives orders to plant which has large stock to supply products

to other plants so that stock can be absorbed quickly. The prices of all the

products are determined by the H.O. and their retail price through out India

is same H.O. charges 3% commission on sales made by milk plant, Sangrur.

For the local sale of milk and milk products, a milk bar is opened outside the

main gate of milk plant, Mohali and its average sales are Rs 5 lakh per day.

Some milk products like liquid milk, Cheese, Milk cake, S.F.M., Ice-cream

etc. are sold through local dealers in the district.

ADVERTISEMENT AND SALES PROMOTION

The advertisement and sales promotion of every product is necessary.

Without this, nobody comes to know about the product. Every organization

whether it is small, medium or big has to do some type of advertisement.

Verka milk plant has also adopted some policies for the sale of its products.

29

It has its own Vans, Trucks, and Jeeps etc. for selling its products. There are

also some benefits which are being provided to the dealers. There is a

facility of free training of testing milk to the societies so as to make more

customers. With the adoption of such policies sales have increased in

Dhuri,Sunam, and Barnala as well as in Sangrur. For doing advertisement

the shops of retailers have been painted showing various Verka products and

various types of banners are also given to them which are to be displayed.

Advertisement of Verka products is also shown on Local Cable Networks of

Chandigarh,Mohali,ropar and many more cities. Pamphlets are also being

distributed door to door.

SALESMANSHIP GUIDE

Certain guidelines and motto are being told to the salesmen for

meeting the customers’ desires and wants. Various guidelines are as follows:

1. It is said "sell yourself before you sell the product". The above

saying is measuring to create one’s own confidence in the minds of

customers so as to ensure sales.

2. Your sincerity and capability in convincing is your performance for

success.

3. Over convincing never pays single facts convince better.

30

4. Always remember that customer is more intelligent than you.

5. Don’t indulge in giving guarantees if wear and tear.

6. You should be pre-determined in your mind of items, size to be sold

to the customers after stock.

7. Your expertise is your success.

8. Don’t display all of your varieties because customers generally have

the habit of asking “more”.

DISTRIBUTION CHANNEL

MILKFED

COMPANY

WHOLESALER

31

RETAILER

CUSTOMER

PRODUCT OF VERKA

Milkfed has formulated company specifications for its milk & milk products

to provide standard and quality of products to consumers.

KHEER Cheese SFM(Pio)

Ghee Icecream & Sweets Milk Powder

32

http://www.milkfed.nic.in/mpdr.htm

http://www.milkfed.nic.in/ice.htm

Milk... Butter Curd

Now Verka has arrived on the sheer strength of its quality, freshness and

purity and of course its home made taste and its products being of most

affordable prices. To people today, Verka is part of their daily life.

1. Liquid Milk Pasteurized Pouch Packed Milk:-

It is pouch packed milk. It may be used as such or for milk based

preparations. It shall be kept under refrigerated conditions. It is packed in

half ltr. Pouch. Its length of shelf life is 48 hours under refrigerated

conditions. It is sold in arid around Chandigarh,Mohali,kharar and ropar

areas. Special distribution control is needed, under refrigerated condition if

transported to very long distance. Verka Milk Plant is preparing three types

of milk pouch :-

Standardized Milk Toned Milk Double Toned Milk

33

http://www.milkfed.nic.in/more.htm

2. Milk Powder:-

Dried Milk or Milk Powder is product obtained by the removal of water

from milk by heat or other suitable means to produce a solid containing 5%

or less moisture. Whole milk, defatted or skim" milk may be used for drying.

It comes in packing of 200 gms, 500 gms. etc. It can be stored for 1 year

before use.

3. Ghee:-

Ghee may be defined as clarified butter fat prepared chiefly from cow or

buffalo milk. The product can be used on roti/pranthas or can be used as

cooking other material for food. It is preserved at ambient temperature for

one year. It is packed on 500 gms, 2 Kgs., 5 Kgs. & 15 Kgs. bulk pack in tin.

It is sold anywhere in Punjab and abroad also. No special distribution

control is needed.

4. Butter: - Butter may be defined as a fat concentrate which is

obtaining by churning cream, gathering the fat into a compact mass and then

working it.

The product obtained from cow and buffalo milk or a combination thereof or

from cream or curd obtained from cow or buffalo milk or a combination

thereof, with or without the addition of common salt and colouring matter. It

can be kept under refrigeration for three months. This comes in packs of 10

gms. 100 gms. And 500 gms.

34

5. Lassi:-

Lassi, also called chhas refers to desi butter milk which is by product

obtained when churning curd led whole milk with curd indigenous devices

for the production of desi butter.

Verka Lassi is very popular, specially in Punjab and it is also liked by the

people of other states. It comes in the 200 ml. tetra pack.

6. SFM:-

It is known as Sweetened flavoured milk or bottle milk. The product used in

the form of drinking sweet milk. It is preserved at ambient temperature. It is

packed in 200 ml. bottle, 200 ml. tetra packs. The length of shelf life of

product can be held far three months under ambient temperature. It is sold in

and around Punjab and upcountry market mainly Delhi.

35

7. Ice Cream:-

Ice Cream may be defined as a frozen dairy product made suitable blending

and processing of cream and other milk products, together with sugar and

flavour, with or without colour and with the incorporation of air during the

freezing process. There are mainly three types of Verka Kulfies i.e. Malai

Kulfi, Choco bar and Mango bar. Malai Kulfi made with milk, malai and

Crushed nuts. Choco bar contained chocolate and Mango bar kulfi contain

mango flavour.

8. Paneer:-

Paneer refers to the small sized soft cheese. The product can be consumed as

such or can be fried and consumed. It can also be used as an ingredient for

making Indian Sweets and paneer based dishes. It is preserved under

refrigerated condition for 20 days from the date of packing. The product is

packed in poly film bags. The pack size is 200 gms. For consumer pack and

5 Kg. Capacity in bulk pack as agreed by contracted buyer.

36

9. Curd/Dahi:-

Dahi or curd is the product obtained from boiled milk by souring, natural or

otherwise, by a harmless lactic acid or other bacterial culture. It should have

the same percentage of fat and solids - not - fat as the milk for which it is

prepared.

10. Raseela:-

Raseela is a very popular product of Verka which was launched in 1995. It

comes in two flavours - i) Mango Raseela and ii) Pine apple Raseela. Mango

Raseela is prepared from mango pulp and Pineapple Raseela from pineapple

pulp. These are coming in 200 ml. tetra pack.

37

11.KHEER

Kheer is something different which is made by boiling rice in milk and then

serve it after freezing it at very low temperature.

38

CHAPTER NO. 2

REVIEW OF

LITERATURE

Dr. Arvind Kumar Yadav and Mr. Suman Yadav (2008)

Journal of IPM Meerut

The research on the on the topic “CONSUMER SATISFACTION IN SBI”

the objective of the study is to made analyse with regard to the assessment of

39

services provided by SBI to the customers. The research methodology used

by researcher includes collection of primary and secondary data. Primary

data has been collected from the existing customers of SBI. Data collected

has been analyzed by researcher through tables, graphs and pie charts. By

the researcher found that the expectations of customers of SBI are met to a

limited extent.

Dr. N. Kathirvel and Dr. N Chandersekaran (2008)

Indian journal of marketing

The researcher research on the topic “CONSUMER BEHAVIOUR AND

BRAND PERFORMANCE TOWARDS THE ONIDA T.V” the objective of

the research was to study consumer satisfaction and brand loyalty of the

respondents toward the Onida T.V. For this researcher collected primary and

secondary data from the sources. The research methodology adopted by the

researcher includes chi-square test, percentage, arithmetic mean, correlation,

and variance. The researcher founded that favorable appreciation response

was received from the customers. Study also certifies that consumer

behavior is unpredictable one in any kind of the market.

J.V Rangeswara Reddy (2009)

40

Indian journal of marketing

The researcher research on the topic “CUSTOMER SATISFACTION OF

NOKIA MOBILE HANDSET USERS” the objective of the research is to

study the satisfaction level of the customers, awareness of customer about

the products and to predict the consumer behavior. For this researcher

collected primary data and analyse it with the help of tables, charts, bar

graphs and pie charts. The researcher found that the product awareness about

the nokia product is high as compared to others. It is also concluded that the

consumer is influenced to buy nokia due to its brand image and also the

satisfaction level of customers of nokia is high as compared to the others

handsets in market.

Steen amp (1991) studied the Consumers' variety seeking tendency

(intrinsic desire for variety) is recognized as an important characteristic that

influences consumers' electronic choice behaviour. Empirical studies in

economics and marketing have not specifically focused on this consumer

characteristic, but instead have approached the issue from the overt

behaviour side. Given the great many factors that may underlie variation in

behaviour, intrinsic desire for variety cannot be validly derived directly from

observed behaviour. Instead, a measure specifically tapping this consumer

characteristic is required. In this paper a scale (VARSEEK) for measuring

consumers' variety seeking tendency with respect to foods is developed. The

construct validity of this VARSEEK-scale is investigated extensively and

managerial implications are discussed

41

H.k mukharje (1995) studied that two-equation bivariate probit model was

formulated to analyze simultaneously consumers' preferences and attitudes

toward organically grown produce (OGP). Results suggest that consumers

who are nutritionally conscious, concerned about the use of pesticides, and

wanting produce tested for freedom from residues would have a higher

Propensity to prefer OGP. Among the potential buyers, consumers who are

white, better-educated, and have large families are more likely than others to

tolerate sensory defects. The study suggests that testing and certification,

sensory qualities, and competitive pricing are the most important factors that

would enhance the marketing potential of OGP

42

CHAPTER NO. 3

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

INSIGHT MARKETING RESEARCH PROCESS AN OVERVIEW

43

The essence of research conducted by me is to analyze the present

market position of Verka products among its competitors and the problems

which are being faced by customers, wholesalers, retailers. The eventual

objective is to suggest some recommendations to the company so as to

enable them to increase their market share.

One in analyzing my samples follows no conventional method. The total

analysis is based on the internees from the question put on before my sample

size. A research of this can’t be done all once throughout large area in a

limited time so MOHALI has been selected for research.

INTRODUCTION

According to Prof. Phillip Kotler,”Marketing research is the

systematic, design, collection, analysis and reporting of the data and finding

relevant to specific marketing situation facing the company”.

Marketing is restless, changing dynamic field. Since 1920 many important

and dramatic changes have taken place in marketing, thousands of new

products including those of entries of new industries such as automobiles,

electronics and computer, textile, walk product etc. have appeared in the

market. The market orientations have changed from production to market.

STEPS OF MARKETING RESEARCH PROCESS:-

DEFINING PROBLEM AND RESEARCH OBJECTIVES

44

DEVELOPING THE RESEARCH PLAN

COLLECTION OF DATA

PRESENTATION OF THE FINDINGS

The first step of marketing research is defining the problems and

research objectives. Following are the problems and objectives which are to

be defined:

# To ascertain the frequency of using Verka product.

# To ascertain rescannable price of Verka products.

# To ascertain the best product of Verka brand. .

# why people prefer Verka kheer.

# To know about sales pattern.

# To know the competition level faced by Verka products in the

market.# To know the opinion of people about Verka products regarding

its taste, packing etc.

DEVELOPING THE RESEARCH PLAN

45

The second step of marketing research process calls for developing

the most efficient plan for gathering the needed information. While

designing a research plan we have to take decisions regarding data sources,

search approached, search instruments, sampling etc. There are two plan

contact methods which are as follows:

A. DATA SOURCES

There are two types of data sources:

1. Primary Data:-

Personal interviews are conducted which enable collection of oral verbal

response. This is fact to face contracted with structured or sometimes even

unstructured patterns. This helps in obtaining indent information.

2. Secondary Data:-

Secondary data can be obtained from different Milkfed magazines and

annual reports, financial documents referred.

B. RESEARCH APPROACH

Survey Method :- Survey are best suited for descriptive research companies

which undertake surveys to learn about peoples’ knowledge, beliefs,

46

preferences, satisfaction etc. to measure these magnitude in the general

population. While observation and tours are best suited for exploratory

research which is not the case of our study.

C. RESEARCH INSTRUMENT

Questionnaire A questionnaire is prepared and used to collect the

information. The majority of questions are close ended. Questionnaire is

distributed to people to know about their preferences, tastes, demands etc.

This is one of the easiest methods of collecting information.

D. SAMPLING PLAN

After deciding on the research approach and instrument, we must design a

sampling plan. This plan calls for three decisions:

1. Sampling Unit:- Here we define what is to be surveyed i.e. the

target population that will be sampled. In our case the general public in cities

and towns come under the sampling unit.

2. Sample Size:- Large samples give more reliable results. In our

study 100 customers were surveyed in mohali

3. Sampling Procedure:- Area sampling is using because it is not

practically possible to visit all places of India therefore mohali chosen for

survey.

47

E. CONTACT METHOD:-

In this decision is taken that how the object should be contacted i.e. whether

by mail questionnaire, telephone, interviews. In our research personal

interview is the most convenient and reliable method.

F. COLLECTION OF THE INFORMATION:-

The data collection phase of the marketing research is the most expensive

and most error prone process. There can be error as some respondent can

give biased or dishonest answer for the collection of the information. The

researchers personally go to customers to collect the reliable data. Here all

knowledge of the researcher about that field comes to test the ingenuity of

the research.

Here I got the experience of working professionally and independently on

the road which gives some taste of practical marketing. I also got a lot of

exposure about the market. The present study undertaken is descriptive in

nature and in this study questioning people with regular expertise in that are

being used.

Limitations of research:-

1) Due to mohali being a large city, it was not possible to interact with

people from all over the city or even district.

48

2) Few consumers were reluctant to fill the questionnaire as they perceived

us as sale men and also shown reluctance in giving their contact numbers.

3) Time period for the project execution was less as ample time could not be

given to each customer and vice versa as they have to fulfill their other

obligations also.

4) Interaction with dealers was also difficulty as they were busy with their

customers most of the time.

5) There is no measure to check out whether the information provided by the

consumers is correct or not.

49

CHAPTER NO. 4

50

DATA ANALYSIS

AND

INTERPRETATION

ANALYSIS & INTERPRETATION

1. Kind/source of milk purchased?

Packed 34

Dairy 25

Milkman 41

51

Packed34%

Dairy25%

Milkman41%

Packed Dairy Milkman

Interpretation: According to 100 respondents 34% people says that they

use to use packed milk, 25% says they use dairy milk and rest 41% says they

use milk brought by milkman.

2: How you ever used Verka KHEER?

Answer Percentage

Yes 60

No 40

60%40%

Percentage

Yes

No

52


use to verka kheer and 40% people do not use verka kheer..

3: From the following which Verka products you have used?

Products Percentage

Milk 55

Kheer 25

Lassi 5

All & Others 15


use to use packed milk, 25% says they use KHEER and 5% says they use

verka lassi and rest are 15% used other product of verka.

Milk Kheer Lassi All & Others

0

20

40

60

Percentage

Percentage

53

4: Since when you are using Verka milk Product?

Time in Years Percentage

1 57

1-5 34

More than 5 9

57%34%

9%

Percentage

1

1-5

More than 5


are using the milk product specially KHEER from the last one year, 34%

from 1 to 5 year and 9%people using the milk more than 5 year..

Q5: Do you think whether the price is reasonable for Verka KHEER

products?

Answer Percentage

Yes 45

No 55

54

45%55%

Percentage

Yes

No

Interpretation: According to 100 respondents 45% people says that the

price of verka KHEER is reasonable and remaining 55% people says that

the price is not reasonable.

6: What do you think about the packing of the Verka KHEER?

Answer Percentage

Good 68

Ok 8

Satisfactory 9

Poor 15

Very poor 0

55

Good

Avera

ge

Satisf

acto

ryPoo

r0

20406080

Percentage

Percentage


packing of verka KHEER is good, 8% people says that packing is ok, 9%

says satisfactory and remaining 15% says that the packing of verka kheer is

poor so according to this analysis packing is good.

7: In your opinion taste of the Verka KHEER is?

Answer Percentage

Good 64

Average 8

Satisfactory 18

Poor 10

Very poor 0

56

Good

Avera

ge

Satisf

acto

ryPoo

r0

20406080

Percentage

Percentage


taste of verka product is good, 8% says that its taste is average, 18% people

satisfactory with this and 10% people says that the taste is poor.

8: What is your opinion about the quality of the various Verka

products?

Answer Percentage

Excellent 13

Good 51

Satisfactory 26

Poor 10

Very poor 0

57

Excellent Good Satisfy Poor0

102030405060

Percentage

Percentage


quality of verka products are excellent, 51% people says that the quality is

good, 26% people satisfy with this and remaining 10% people says that it is

poor.

Likert scale

For comparing verka products with Today & Amul with respect to

likert type scale has been used.

Services

of verka

Excellent

(5)

Good

(4)

Average

(3)

Poor

(2)

Very

poor

(1)

Total

weighte

d

average

Relative

%

Packing 68 8 9 15 0 429 35.63

Taste 64 8 12 10 0 408 33.88

quality 13 51 26 10 0 367 30.48

58

Note:- Responses of excellent were assigned weight of (5) good responses

were assigned weight of (4) responses of average (3) and responses of poor

and very poor were assigned weight of (2) and (1) respectively. And

respective responses were multiplies with their corresponding weight to get

total weighted average and then their relative percentage was calculated.

9. Do you want fruits and nuts in verka kheer?

Yes 63

No 37

packing taste quality27

28

29

30

31

32

33

34

35

36

37

services of verka prefered by cus-tomer as compared to Today milk & Amul

services provided by verka

rela

tive

%

59

No37%

Yes63%

Yes No


want fruits and nuts and rest 37% says that they do not want it.

10: Have you ever seen the advertisement of the Verka KHEER?

Answer Percentage

Yes 24

No 76

24%

76%

Percentage

Yes

No


have not seen the verka advertisement and 24% says that they have seen the

60

advertisement. As clear from analysis mostly people have not seen the verka

advertisement.

11: When you like to buy verka KHEER?

Answer Percentage

During Traveling 27

For Break 18

As a Health Tonic 35

For Enjoy 20

Du

rin

g T

r...

Fo

r B

rea

k

As

a H

ea

l...

Fo

r E

njo

y

010203040

Percentage

Percentage


like to buy verka products during traveling, 18% people buy during break

time, 35% people buy as a health tonic and remaining 20% buy verka

products only for enjoy.

61

CHAPTER NO .5

CONCLUSION

63

Conclusion

Working at Verka Milk Plant, MOHALI gave me an opportunity to apply

my skills and knowledge, which I had gained previously.

It gave me an opportunity to see working an organization and to be a part of

it. Marketing Research Project on Rural Marketing gave me an opportunity

to be exposed to the farmers who were the members of various Milk

Producers’ Co-operative Societies and to know about them.

It was an amazing experience with learning all the way, which helped me to

brush up my knowledge and skills.

64

CHAPTER .6

SWOT ANALYSIS

65

SWOT ANALYSIS

STRENGTHS:-

1. Brand Loyalty among the rural people for Verka products.

2. Good brand image of Verka KHEER in the minds of rural people.

3. Faith on Verka products by the rural farmers.

4. Rural people satisfaction with quality, price, quantity and availability

is also strengthen the dairy business.

WEAKNESSES :-

1. Lack of proper advertisements by the plant, such as posters, glow

signs, etc.

2. Lack of proper distribution system in rural areas.

3. Lack of proper marketing network in rural areas as like in urban areas.

4. Very high rates of KHEER for Rs.15 for 200 mg.

66

OPPORTUNITIES:-

1. Greatly improved expert potential for milk products of western as well

as traditional types.

2. Proper utilisation of available resources to decrease the per unit cost.

3. By product utilisation for import substitution.

4. Growing demand for milk and milk products.

THREATS:-

1. Introduction of foreign products in Indian market.

2. Poor quality of milk.

3. The liberalisation of Dairy Industry is likely to be exploited by multi -

nationals. They will be interested in manufacturing milk products which

yield high profits. It will create milk shortage in the country adversely

affecting the consumers.

4. Export of quality feed under the liberalisation policy.

67

CHAPTER NO .7

SUGGESTION

AND

RECOMMENDATION

68

RECOMMENDATIONS REGARDING PRODUCT:-

Verka has presently four variants of liquid milk in market but still it is not

able to segment market according to consumers’ preferences. The only

differentiation in these variants is the color of the packs. Variants name

should be printed on the packs in such a way that they are clearly visible to

the consumers. Different punch lines should be designed for different

variants. This will help in formulating advertisement strategy and reaching

the targeted customers. For example, verka smart double toned milk is

offered recommended by doctors to heart patients. It can be targeted in

health conscious people.

Plain lassi which comes in one litre pack only should be available in smaller

packs like 250ml or 500ml.

Kheer is available in 125gm pack, which is quite small and is recommended

to be packed in larger pack like family size packs so that it can be consumed

conveniently as a sweet dish by whole family.

RECOMMENDATIONS REGARDING PLACE

Milk consumer values from delivery and a lot of distributors are already

providing this facility. Milk plant should think of giving extra commission to

its dealers for ensuring such facilities. This scheme can be implemented in

69

few areas and if there is an increase in consumption of milk then it can be

extended to all other areas catered by milk plant.

There is need to communicate regularly and taking feedback from agents.

Monthly meetings will help in improving the relation with dealers. The

declaration of the prices like “Fastest Growing Dealer” OR “Highest selling

Dealer” can be announced bi monthly or bi annually to motivate dealers to

increase their sales.

Shortage of products is seen in Sunam so distribution network should be

improved for the same.

RECOMMENDATION REGARDING PROMOTION

The following steps can be taken in the field of promotion:

1) Using electronic and print media for information dissemination:

In recent days, there has been lots of new highlighting adulteration of food

products that is making people skeptical about packed food products.

Special programs highlighting supply chain of milk producers ‘ co-

operatives can be screened and telecasted on TV from time to time .news

highlighting achievement of milk plant can also be published in news papers

which will help in creating favorable image for verka products.

70

2) Inviting people for plant visits on weekends:

Plant can be opened to general public for visit on Saturday and Sunday for a

limited time interval in order to win their trust on verka products. This can

be done through collaborating with Radio Fm channels where winners can

get free visits and some limited period coupons.

3) Toll free telephone for customer feedback:

Presently verka products have a telephone number printed on their packs but

this is not toll free. A toll free number should be there and printed in such a

color or font that is easily differentiable from the rest of the text on the pack.

Recommendations regarding pricing:

Following suggestions can be considered for improving pricing strategies of

companies:

1) Introduction of coupon system;

Milk is the commodity that is daily bought and consumed within

households. It is cumbersome for consumers to make payment daily as

change for currency is not available at times. There are offered candies in

return for change which many of the consumers do not like. This problem

can be solved by introducing milk coupon which can be bought from

agencies. Coupon system has been successfully implemented by several

individual distributors in their respective areas. It is needed to be

implemented in entire city.

71

2) Pricing in round figures:

Milk sellers often do not have fifty paise coin or change with them so they

often sell milk at higher prices .this problem can be curbed by keeping the

prices in whole number multiple of rupee. People buying milk using

coupons can be this discount of fifty paise. This will encourage more people

to for milk coupon.

72

CHAPTER NO .8

BIBLOGRAPHY

73

Brochure/booklet/magazine Verka milk Plant, Mohali

Kothari C R, “Research methodology” Second Revised Edition Publishers-

New Age International (P) Ltd., Year- 2008

Dr. Arvind Kumar Yadav and Mr Suman Yadav (2008) , Journal of IPM

Meerut

Dr. N. Kathirvel and Dr. N Chandersekaran ( 2008) , Indian journal of

marketing.

J.V Rangeswara Reddy (2009) , Indian journal of marketing.

Websites:-

www.milkfed.nic.in

www.milkfed.jp

www.milkfed.org

74

http://www.milkfed.org/

http://www.milkfed.jp/

http://www.milkfed.nic.in/

CHAPTER NO .9

ANNEXURE

75

ANNEXURE

Dear Sir/Madam

I am a student of, CBS, MOHALI conducting a marketing

survey on “study on consumer behaviour about verka products I”. I request

you to fill this questionnaire & I assure that this data will be used only for

study purpose & it will be kept confidential.

Name: …………….

Address: …………....

Telephone No: ……………

1. Kind/source of milk purchased?

Packed

Dairy

Milkman

76

2. How you ever used verka product?

Yes

No

3. From the following which verka products you have used?

Milk

kheer

Lassi

All & others

4. since when you are using verka milk products?

One year

1-5 years

More than 5 years

5. Do you think whether the price is reasonable for veka milk products?

Yes

No

77

6. What do you think about the packing of different verka products?

Good

Ok

Satisfactory

Poor

7. In your opinion taste of verka products are?

Good

Average

Satisfactory

Poor

8. What is your opinion about the quality of the various verka kheer?

Excellent

Good

Satisfy

Poor

78

9. Are you aware that full cream milk is best for growing children & sports

persons as it contains 6.0% of fats?

Yes

No

10. Have you ever seen the advertisement of verka products?

Yes

No

11. When you like to buy verka kheer?

During traveling

For break

As a health tonic

For enjoy

79

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