Upload
anandanicon
View
409
Download
2
Tags:
Embed Size (px)
Citation preview
CHAPTER 1
INTRODUCTION ABOUT THE MILK INDUSTRY
The Tamilnadu Cooperative Milk Producers Federation Ltd. constituted on the 1st
February 1981 is handling the entire commercial activities of procurement, processing
and marketing of milk and milk products.
The Federation had implemented the Dairy Development activities with the funds
provided by the National Dairy Development Board under Operation Flood Programmed
in 24 Districts and in Non-operation Flood Districts Dairy Development activities are
implemented by the Dairy Development Department through budgetary support both
under State/Central Plans.
To facilitate, better administration and qualitative improvement of integrated Dairy
Development, there are 17 Districts Cooperative milk Producer’s Unions covering all 28
Revenue Districts except Chennai. The normal activities of milk procurement and
distribution are being attended to by the District Unions. However, for genetic
improvement of milch animals, the Federation through the two bull mother farms owned
and managed by TCMPF carries out the production of frozen semen both for white cattle
and black cattle.
The Federation owns four dairies, one at Ambattur with a capacity of 4.00 lakh
liters per day, one at Madhavaram with a capacity of 1.75 lakh liters per day, a third dairy
at Sholinganallur with a capacity of 4.00 lakh liters per day. These dairies cater to the
processing, packing and distribution of liquid milk in and around Chennai City. The
fourth dairy, a product dairy at Ayyanavaram with a capacity of 12000 liters per day, is
engaged in the manufacture of milk by-products such as yogurt, ice-cream and khova
The Federation supervises and coordinates the activities of the District Unions and
provides technical expertise as and when required and also undertakes planning and
1
erection/expansion of Dairies and Chilling Centers of the unions on turnkey basis. The
Federation helps the Unions in marketing their milk products like Skimmed milk powder,
Ghee, Butter and Cheese both within and outside the state.
OBJECTIVES OF THE DAIRY
Assure a remunerative price for the milk produced by the milk producers' societies
through a stable, steady and well organized market support.Distribution of quality milk
and milk products at reasonable prices to the consumers.Bearing the above two
objectives in mind, the following major multifarious activities are undertaken by the Dairy
Development Department.
Provision of free veterinary health cover to all animals owned by the members of
milk cooperatives, implementation of Artificial Insemination Programmed, supply of
balanced cattle feed and inculcation of farmers with the modern animal husbandry
methods and practices.
All activities, which are essential for the up gradation of the milch animals and
improving their productivity in the long run, are also to be imparted on them.
Provision/creation of necessary infrastructure facilities for the enhancement of
processing and marketing has been made by way of establishing new chilling centers,
pasteurization plants and adoption of modern marketing system in order to supply quality
milk to the consumers.
FUNCTIONS OF THE DAIRY
The main functions of the Dairy Development Department are Organization of
societies, registration of societies, supervision and control of primary milk cooperatives,
District Cooperative Milk Producers Union and Tamilnadu Cooperative Milk Producers
Federation.
2
The Dairy Development Department exercises statutory function - like Inquiry,
Inspection, Surcharge and Super session, appointment of special officer’s liquidation and
winding up of dormant Societies etc.
The Commissioner for Milk Production and Dairy Development, Deputy Milk
Commissioner (Co-operation), and Circle Deputy Registrars (Dairying) are vested with
quasi-Judicial powers in respect of settlement of disputes, appeal, revision and review
under various provisions of Tamilnadu Cooperative Societies Act 1983 & the rules made
there under.
The Commissioner for Milk Production and Dairy Development has been
designated as the State Registering Authority for the state of Tamilnadu, under the
provisions of Milk and Milk Products Order'92. All the Dairy units including private Dairies
handling more than 10,000 lpd of milk or Milk Products containing milk solids in excess
of 500 Metric tones per annum has to obtain registration certificate under the provision of
Milk and Milk Products Order'92.
The Commissioner for Milk Production and Dairy Development / State Registering
Authority has been conferred with powers to register the dairy units having handling
capacity from 10,000 LPD to2 lakh LPD.
The Commissioner / State Registering Authority / Deputy Milk Commissioner
(Co-operation) / District collector and Deputy Registrars have been authorized to carry
out supervision and periodic inspection of the dairies
National Diary Development Board (NDDB)
Diary co-operative account for the major share of processed liquid milk marketed
in the country. Milk is processed and marketed by 170 milk producers’ co-operative
unions, which federate into 15 state co-operative milk marketing federations.
3
The diary development board’s programmes and activities seek to strengthen the
functioning of diary co-operatives, as producer-owned and controlled organizations.
NDDB supports the development of diary co-operatives by providing them financial
assistance and technical expertise, insuring a better future for Indian farmers.
Over the years, brands created by co-operatives have become synonymous with
quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras
(Rajasthan), Nandini (Karnataka), Milma (Kerala), Gokul (Kolhapur), Aavin(Tamilnadu),
are those that have earned customers confidence.
Some of the major diary co-operatives federations include
Andra Pradesh Diary Development Co-operative Federation Ltd.,(APDDCF)
Bihar State Co-operative Milk Producers Federation Ltd.,(COMPFED)
Gujarat Co-operative Milk Marketing Federation Ltd.,(GCMMF)
Hariyana diary Development Co-operative Federation
Himachal Pradesh state Milk Producers Federation Ltd., (HPSCMPF)
Karnataka co-operative Milk Producers Federation Ltd., (KMF)
Kerala state co-operative Milk Producers Federation Ltd., (KCMMF)
Madhya Pradesh state co-operative Dairy Federation Ltd., (MPCDF)
Maharastra Rajya Shakari Maryadit Dugdh Mahasangh
Orissa State Co-operative Milk Producers Federation Ltd., (OMFED)
Prdeshik Co-operative Dairy Federation Ltd., (UP PCDF)
Punjab State Co-operative Dairy Federation Ltd., (MILK FED)
Rajasthan co-operative Dairy Federation Ltd., (RCDF)
Tamilnadu co-operative Dairy Federation Ltd., (TCMPF)
West Bengal co-operative Milk Producers Federation Ltd., (WBCMPF)
4
ACHIEVMENT OF DIARY CO-OPERATIVES:
Commitments to help rural help themselves has guided the diary boards work for
more than 30 years this commitment has been rewarded with achievements made by co-
operative diaries in milk production, employment generation, per capital availability of
milk, foreign exchange Savings and increased farmer incomes.
REACH:
The Diary Co-operative Network.
Include 170 milk unions.
Operates in over 285 districts.
Covers nearly 96,000 village level societies.
Is owned by nearly 10.7 million farmer members.
MILK PRODUCTION:
India’s milk production increased from 21.2 million MT in 1968-69 to 78.1 million
MT in 1999-2000.Per capita availability of milk presently is 213 grams per day, up
from 107 grams per day in 1969-70
India’s 4% annual growth of milk production surpasses the 2% growth in
population. The net increase in availability is around 2% per year.
MARKETING:
Diary Co-operatives now market milk in about 200 classes 1 town and some 550.
During the last decade, the daily milk supply to each 1000 urban Indians has
increased from 17.5 to 43.5 liters.
5
INNOVATION:
1. Bulk − vending − saving money and environment.
2. Milk travels as far as 2200 Kms to deficit areas, carried by innovative and road
milk tanker.
3. 95% of diary equipment is produced in India, saving valuable foreign exchange.
MACRO IMPACT:
1. The annual value of India’s milk production amounts to Rs.780 billion.
2. Diary co-operative generate employment opportunities for some 10.5 million farm
families.
PERSPECTIVE 2015:
The perspective 2015 plan of the Diary Board maps the future of dairying in India,
setting realistic goal for strengthen co-operative business, production enhancement,
assuring quality, and creating National Information Network. The plan was realistic with
the successful completion of the operation flood program and has developed by the
State milk Marketing Federation and the Milk Producer’s Co-operative Unions in
consultation with the diary Board. The perspective 2015 goals and strategies to meet
them have been drawn by its actual implementers-federation and unions and supported
by NDDB. (National Diary Development Board)
PERSPECTIVE 2015 GOALS:
1. Increase liquid milk procurement by co-operatives to 33% (488 lakhs kilograms
per day) of the marketable surplus in operation Flood Areas constituting 80% of the
National Milk Produced (i.e. quadruple liquid milk procurement by the year 2015)
2. Increase liquid milk sales to 365 lakhs kilo grams per day, more than 60% of the
market shares in metros, and on average of close to 50%in class 1 cities served by Co-
operative (i.e. triple fluid milk marketing by the year 2015)
6
PRODUCT RANGE
MILK:
The federation is engaged in production of both milk and milk products. The
federation sells the following type of milk to customers in Chennai metro:
Standardized Milk
Toned milk
Full cream milk
UTH milk
These products are marked under the brand name “AAVIN”
MILK PRODUCTS:
1. Yogurt
2. Ice creams
3. Butter Milk
4. Khova
5. Skimmed milk powder
6. Ghee
7. Butter
8. Cheese
9. Flavoured milk
10. Mavin mango drink
7
PRODUCT DETAILS:
Product diary is situated next to the Ambattur dairy. It is controlled by the manager
(production and maintenance). The milk which is received through load tankers are
pumped into raw milk storage tank, then taken for different product processing. The
various products produced here are as follows:
Ice Creams
Khalakhad
Yoghurt/ fermented milk
Curd
Buttermilk
Gulabjamun
Flavoured Milk
Khoa (sweetened)
Khoa (unsweetened)
Mysorepak.
MARKET COMPETITORS:
Aavin stands first in the production and distribution of milk in Tamilnadu. Its
competitors are:
Arokya
Heritage
Thirumala
Nutra
8
CHAPTER 2
REVIEW OF LITRATURE
ROSHIT SHARMA (1999) “VIEW ON INDIAN DIARY SECTOR”
Under the provisions of milk and milk products order. All the dairy units including
private dairies handling more than 10,000 lpd of milk or milk products containing milk
solids in excess of 500 metric tons per annum has to obtain registration certificate under
the provision of milk and milk products order
ANAND VEER (2005) “SPECULATIVE VIEW ON INDIAN DIARY SYSTEM”
The diary development board’s programs and activities seek to strengthen the
functioning of diary co-operatives, as producer-owned and controlled organizations.
NDDB supports the development of diary co-operatives by providing them financial
assistance and technical expertise, insuring a better future for Indian farmers.
DENNIS MATHEW (2006) “DIARY ON GLOBAL VIEW “
Commitments to help rural help themselves has guided the diary boards work for
more than 30 years this commitment has been rewarded with achievements made by co-
operative diaries in milk production, employment generation, per capital availability of
milk, foreign exchange savings and increased farmer incomes.
KEVIN ALEX (2004) “INDIAN MILK PROCURMENT”
In India realistic goal for strengthen co-operative business, production
enhancement, assuring quality, and creating national information network. The
successful completion of the operation has developed by the state milk marketing
federation and the milk producer’s co-operative unions in consultation with the diary
board. The perspective 2015 goals and strategies to meet them have been drawn by its
actual implementers-federation and unions and supported by NDDB. (national diary
development board)
9
CHAPTER 3
RESEARCH METHODOLOGY
3.1 MEANING
The research approach for this study was conclusive research. Conclusive
researches are designed to help executives to choose among various possible
alternatives to make a viable business decision. Further this research was of descriptive
type, which is an offshoot of conclusive research. The problem for this research was
non-operating in nature the data both primary and secondary data, the source was one
hundred respondents for primary data. For the proper analysis of data simple statistical
techniques such as percentage were use. It helped in making more accurate
generalization from the data available.
3.2 SOURCES OF DATA
Source of data for this project primary & secondary only. In reference to the
theoretical concept as well as for information are collected through secondary sources
from paper published material i.e. Newspaper, journal and magazine & from printed
electronic media i.e. Internet websites. The primary data was collected through
questionnaire filled from the respondents.
3.3 COLLECTION OF PRIMARY DATA
For the study primary data is obtained through preparing questionnaire
3.4 COLLECTION OF SECONDARY DATA
The secondary data that are required are got from the internet, books and other
sources.
10
3.5 SAMPLE SIZE
The method used for sample technique was random sampling method. This
method was used because it was not know previously as to whether a particular person
will be asked to fill the questionnaire.
3.6 SAMPLE UNIT
The population of the sample would be 100 respondents.
3.7 STASTICAL TOOLS
Simple Percentage Analysis=Number of Respondents/Total Number of
Respondents×100%
CHI-SQUARE
Chi Square analysis has been used to judge the relationship or association
between two attributes and to find out how they are influencing the investment patterns.
Χ2=Σ (O-E) 2/E
Degree of freedom= (R-1) (C-1)
Where O = Observed Frequency
E = Expected Frequency
R = Number of Rows
C = Number of Columns
11
CHAPTER 4
ANALYSIS AND INTERPRETATION
Table - 1
Consuming Milk
S.No Factors No of
respondents
Percentage
1. Yes 89 89
2. No 11 11
Total 100 100.00
Interpretation
From the Above Table we predict that 89 % of the Respondents
consume milk & 11 % do not.
Inference
This Study reveals that 89 % of the respondents consume milk
CHART 1
Consuming Milk
12
Table – 2
Consumption of Milk
13
NO
OF R
ES
PO
ND
EN
TS
MILK CONSUMPTION
S.No Factors No of
respondents
Percentage
1. Aavin 28 28
2. Arokaya 30 30
3. Nutra 18 18
4. Akshya 24 24
Total 100 100.00
Interpretation
From the Above Table we predict that 28 % of them buy Aavin while 30
% buy Arokaya 18 % buy Nutra & 24 % buy Akshya
Inference
This Study reveals that 30 % of the respondents buy Aryoka Milk
CHART 2
Consumption of Milk
14
Table-3
Other milk factor
S.No Factors No of
respondents
Percentage
15
NO
OF R
ES
PO
ND
EN
TS
MILK BRAND COMSUMPTION
1. Butter 34 34
2. Cheese 28 28
3. Paneer 24 24
4. Others 14 14
Total 100 100.00
Interpretation
From the Above Table we predict that 34 % of the Respondents buy
Butter while 28 % buy cheese 24 % buy paneer and 14 others products.
Inference
This Study reveals that 34 % of the respondents buy Butter
CHART 3
Other milk factor
16
Table - 4
Satisfaction of the Product
S.No Factors No of
respondents
Percentage
1. Yes 64 64
17
NO
OF
RES
PO
ND
EN
TS
OTHER PRODUCTS
2. No 36 36
Total 100 100.00
Interpretation
From the Above Table we predict that 64 % of the respondents are
satisfied while 36 % are not satisfied.
Inference
This Study reveals that 64 % of the respondents are satisfied with the
milk
CHART 4
Satisfaction of the Product
18
Table – 5
About the Product
S.No Factors No of Percentage
19
NO
OF R
ES
PO
ND
EN
TS
SATISFICATION LEVELSATISFICATION LEVEL
respondents
1. Friends/Family 40 40
2. T.V. Ads 24 24
3. Newspaper/Boards 32 32
Total 100 100.00
Interpretation
From the above Table we predict that 40 % from Friends & Family 40 %
from Tv Ads 32 % Newspaper/Boards
Inference
This Study reveals that 40% of the respondents came to know about
the product through Family\Friends
CHART 5
About the Product
20
Table – 6
Purchasing Significance
S.No Factors No of
respondents
Percentage
1. Quality 30 30
21
NO
OF R
ES
PO
ND
EN
TS
PRODUCT RELEVANCE
2. Quantity 24 24
3. Service 20 20
4. Others 26 26
Total 100 100.00
Interpretation
From the Above Table we predict that 30% of respondents look for
Quality, 24% go towards Quantity 20% Service 26 % others.
Inference
This Study reveals that 30 % of the respondents wanted Quality in their
product
CHART 6
Purchasing Significance
22
Table – 7
Comparison Competitor’s product
S.No Factors No of
respondents
Percentage
1. Very Good 14 14
2. High 34 34
23
NO
OF R
ES
PO
ND
EN
TS
PURCHASING BASIS
3. Average 10 10
4. Same 42 42
Total 100 100.00
Interpretation
From the Above Table we predict that 14 % of the respondents compare
their product on very good, 34% is high, 10 % Average, 42% are same.
Inference
This Study reveals that 34 % of the respondents feels the price of
others product is very high
CHART 7
Comparison Competitor’s product
24
Table – 8
Substitutes
S.No Factors No of
respondents
Percentage
1. Tea 38 38
25
NO
OF R
ES
PO
ND
EN
TS
COMPETITORS COMPARISION
2. Coffee 42 42
3. Cool Drink 12 12
4 Others 8 8
Total 100 100.00
Interpretation
From the Above Table we predict that 38% of respondents drink tea, 42
% drink coffee, 12 % drink Cool Drink, 8 % prefer others.
Inference
This Study reveals that 42 % of the respondents feel coffee as the close
substitute
CHART 8
Substitutes
26
Table-9
Beverages as Substitutes
S.No Factors No of
respondents
Percentage
1. Yes 32 32
2. No 68 68
27
NO
OF R
ES
PO
ND
EN
TS
Substitutes
Total 100 100.00
Interpretation
From the Above Table we predict that 32% of the respondents use
Beverage as substitute while 68% do not
Inference
This Study reveals that 68 % of the respondents feel that Beverages are
not the close substitute
CHART 9
Beverages as Substitutes
28
Table-10
Implication of Advertisements
S.No Factors No of
respondents
Percentage
1. Yes 64 64
2. No 36 36
29
NO
OF R
ES
PO
ND
EN
TS
Beverage on substitute
Total 100 100.00
Interpretation
From the Above Table we predict that 64 % of the respondents agree
with the Advertisement Implies and 36 % do not agree.
Inference
This Study reveals that 64 % of the respondents feel that
advertisements implies
CHART 10
Implication of Advertisements
30
Table-11
Satisfaction of Homemade milk
S.No Factors No of
respondents
Percentage
1. Yes 61 61
2. No 39 39
31
NO
OF R
ES
PO
ND
EN
TS
Advertisement Influence
Total 100 100.00
Interpretation
From the Above Table we predict that 61 % of respondents are satisfied
with Homemade Milk while 39 do not agree.
Inference
This Study reveals that 61 % of the respondents feel satisfied with
home made milk
CHART 11
Satisfaction of Homemade milk
32
Table-12
Performance of the Existing Product
S.No Factors No of
respondents
Percentage
33
NO
OF R
ES
PO
ND
EN
TS
Satisfication level
1. Outstanding 26 26
2. Excellent 30 30
3. Good 20 20
4. Average 24 24
Total 100 100.00
Interpretation
From the Above Table we predict that 26 % of respondents believe its
outstanding, 30 % are excellent, 20 % believe its good & 24 on average basis
Inference
This Study reveals that 30 % of the respondents feel their product is
excellent
CHART 12
Performance of the Existing Product
34
Table – 13
Promotional Activity
S.No Factors No of Percentage
35
NO
OF R
ES
PO
ND
EN
TS
Performance level
respondents
1. Yes 64 64
2. No 36 36
Total 100 100.00
Interpretation
From the Above Table we predict that 64 % of respondents are affected
by their promotional activity and 36 % are not
Inference
This Study reveals that 64 % of the respondents feel their product
makes product promotion
CHART 13
Promotional Activity
36
CHAPTER 5
5.1 FINDINGS
37
NO
OF R
ES
PO
ND
EN
TS
PROMOTIONAL ACTIVITY
This Study reveals that 89 % of the respondents consume milk
This Study reveals that 30 % of the respondents buy Aryoka Milk
This Study reveals that 34 % of the respondents buy Butter
This Study reveals that 64 % of the respondents are satisfied with
the milk
This Study reveals that 40% of the respondents came to know about
the product through Family\Friends
This Study reveals that 30 % of the respondents wanted Quality in
their product
This Study reveals that 34 % of the respondents feels the price of
others product is very high
This Study reveals that 42 % of the respondents feel coffee as the
close substitute
This Study reveals that 68 % of the respondents feel that Beverages
are not the close substitute
This Study reveals that 64 % of the respondents feel that
advertisements implies
This Study reveals that 61 % of the respondents feel satisfied with
home made milk
38
This Study reveals that 30 % of the respondents feel their product is
excellent
This Study reveals that 64 % of the respondents feel their product
makes product promotion
5.2 SUGGESTIONS
Milk and milk product purchase decisions are more decided by women rather than
male, because she act as a invigilator, execute her decision and influence the
same to the purchase while ascertaining the quality, freshness and price. Hence, I
suggest Diary co-operative society to concentrate more on the women and men
39
suggestions for designing the marketing strategy, because women’s role in the
house is dominant, even in the various decisions.
Income of the people decides the purchasing power. The high income prefers to
purchase product with the quality, freshness, thickness, etc. and vice versa. So I
suggest Diary to concentrate also on low income segment to capture market and
position themselves in the minds of the customer with required quality and quality
milk and milk products.
Quality and Brand Image plays a dominant role. Milk and milk products move in
the market due to its quality and brand. Therefore it should maintain the same.
Since milk is having loyal customer it should concentrate more on this factor
through various potential programmes such as campaign, premium packs, offers
etc., this helps to increase the loyalty towards the diary products
As only 30% of the total respondents are dissatisfied which is quite a large
percentage and this may influence negatively and increase the rate of switch over.
Hence I suggest management to concentrate on few product quality, shelf life,
dealers approach, outlet maintenance etc. will help diary department to satisfy to
a greater extent.
Milk and milk product are having high demand and it is considered as a very
essential products. In present practice, purchase of milk and milk products is
through dealers. In this connection dealers approach towards the product.
40
5.3 CONCLUSIONS
From the survey conducted it is observed that milk and Milk products has a good
market share.
From the study conducted the following conclusions can be drawn. In order the
dreams into reality and for turning liabilities into assets one must have to meet the
needs of the customers.
41
The factors considered by the customer before purchasing milk are freshness,
taste, thickness and easy availability.
Finally I conclude that, majority of the customers are satisfied with the milk and
Milk products because of its good quality, reputation, easy availabilities. Some
customers are not satisfied with the Milk & Milk products because of high price,
lack of dealer services, spoilage and low shelf life etc. therefore, if slight
modification in the marketing programme such as dealers and outlets, promotion
programmers, product lines etc., definitely company can be as a monopoly and
strong market leader.
Diary Department has also to take care of its competitors into consideration and
more importantly it’s customers before making any move.
ANNEXURE
5.4 QUESTIONNAIRE
1. Name
2. Age
3. Gender
42
4. Occupation
5. Annual Income
6. Do you consume milk?
Yes❏ No❏
7. How much litres milk do you purchase per day?
---------------------
8. Which Milk do you buy?
❏Aavin ❏Arokaya ❏Nutra ❏Akshya
9. Other than milk what do you purchases in the same brand
❏Butter ❏ Cheese ❏Panner ❏Others
10.Are you satisfied with the quality of the product?
Yes ❏ No❏
11.How did you come to know about your milk product?
❏Friends/Family
❏T.V. Ads
❏Newspaper/Boards
12.What exactly you wanted in the milk you purchase?
❏Quality ❏Quantity ❏Service ❏Others
43
13.Do you think the price of your existing product is high / low compared to
Competitor’s product?
❏Very good ❏High
❏Average ❏Same
14.Other than milk which component is comparable?
❏Tea ❏Coffee ❏Cool drinks ❏Others
15.Are beverages close substitute for milk?
Yes ❏ No❏
16.Does Advertisement implies the sale of Diary Product
Yes ❏ No❏
17.Will you be satisfied with the home made milk products?
Yes ❏ No❏
18.What is your opinion about the performance of your existence Diary Product?
❏Outstanding ❏Excellent
❏Good ❏Average
19.Do the various schemes / promotional activities affect your purchase plans?
❏Yes ❏No
20.Suggest your comments on improving the diary products
______________________________________________
44
5.5 BIBLIOGRAPHY
Websites
www.altavista.com
www.askjeeva.com
www.google.com
45
www.aol.com
www.hindustan.com
www.projecthubs.com
www.indiainfoline.com
Newspapers
Times of India
The Economic Times
46