Gundeep Project

SUMMER TRAINING REPORT

ON

“Study of consumer Perception about

Verka products”

Submitted in partial fulfillment of the requirements for the degree of Master of business administration (2008-2010) affiliated to Punjab Technical University, Jalandhar

Project Guide SUBMITTED BY

Ms. Mandeep Mahendru Gundeep Singh

Faculty of Management BBA-5th Sem.

GJ-IMT, Mohali Roll No.:-8100132012

GIAN JYOTI INSTITUTE OF MANAGEMENT AND TECHNOLOGY

MOHALI

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.

GUNDEEP SINGH

2

DECLARATION

I undersigned here by declare that the summer training project report

submitted to my college Gian Jyoti Institute of management and

technology. In partial fulfillment for the degree of master of business

administration on “study of consumer Perception about Verka

products” 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. GUNDEEP SINGH BBA (IVth Semester) has

successfully completed her project titled “Study of consumer behaviour

about verka products” under the guidance of Ms. Mandeep Mahendru.

This is in the partial fulfillment of her MBA curriculum (2008-2010)

Dated:

Ms. Mandeep Mahendru

(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

6

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

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

7. Suggestions and recommendations 67-71

8. Bibliography 72-73

9. Annexure 74-78

CHAPTER NO. 1

8

INTRODUCTION

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

9

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

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;

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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

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

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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.

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.

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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

(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

13

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

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

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RAW MATERIAL: Milk.

PRODUCTS: Ghee, Pasteurized milk,

Milk powder, Curd, Cheese,

Milk Cake, Sweet flavored milk.

WORKING HOURS: 24 hours (3 shifts).

TOTAL WORKERS: 163.

Capacity 1 Lakh Ltrs per day.

PROFILE OF THE UNIT

The elegant building situated on Patiala road just before we enter Sangrur is

that of Milk Plant owned by The Sangrur 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 Sangrur Distt. Co-operative Milk

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

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

procurement from March 1974.

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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 Sangrur was not existing. Initially the

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

centers were approved at Dhuri and Malerkotla. 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.

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 Sangrur 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.

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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.

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 milk through these societies. Shortest

milk routes are preferable so that milk reach to plant in same condition,

otherwise milk can become sour or curd. 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

18

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

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:

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

2001- 85000 liters per/day





2006-65000 liters per/day


2008- 62000 liters per day

MAIN CENTRES AND THEIR BRANCHES:

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

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

centers which are as under:

LOCAL SANGRUR 140

MALERKOTLA 50

SEHNA 30

20

MEHAL KALAN 30

CHANGALIWALA 30

SANDHORE 20

(A) MILK PROCUREMENT PER DAY

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

40000 Sehna 8000 Mehal Kalan 5000 Chanhaliwala 7000

(B) PRODUCTION

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 Sangrur two different plants

are established for the production of Ghee 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 Ghee is prepared

21

from cream after its separation 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 Ghee 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

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.

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(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 Sangrur 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

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.

ACHIEVEMENTSMilk Procurement: - Milk Plant procured about

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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.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

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

24

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

Sangrur are as under:1. Ghee.2. Pasteurized Milk.3. Milk

Powder.4. Sweetened Flavoured Milk (PIO).5. Milk Cake.6.

Cheese.7. Curd. MARKETING

DEPARTMENT 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 paymentMARKETING

MEASURES FOR DOMESTIC MARKET: For domestic

market following measures are taken up by marketing personnel: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

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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-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, 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

26

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. 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

27

sincerity and capability in convincing is your performance for success.3.

Over convincing never pays single facts convince better.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 RETAILER

CUSTOMER PRODUCT OF VERKA Milkfed has formulated

company specifications for its milk & milk products to provide standard and

quality of products to consumers.

Milk Cheese SFM(Pio)

Ghee Icecream & Sweets Milk Powder

Curd, Kheer... Butter Rasella

28

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

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

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

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

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 Milk2.

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

29

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. 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. 7. Ice Cream:- Ice

30

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

andCrushed 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. 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

31

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. CHAPTER

NO. 2 REVIEW

OFLITERATUREDr. 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

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

32

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) 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 discussedH.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

33

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 OGPCHAPTER NO.

3RESEARCHMETHOD

OLOGYRESEARCH METHODOLOGY INSIGHT

MARKETING RESEARCH PROCESS AN OVERVIEW 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 Sangrur, Sunam have 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

34

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

OBJECTIVESDEVELOPING THE RESEARCH PLANCOLLECTION OF

DATAPRESENTATION 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 products.# 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 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:-

35

Secondary data can be obtained from different Milkfed magazines and

annual reports, financial documents referred.B. RESEARCH

APPROACHSurvey Method :- Survey are best suited for descriptive

research companies which undertake surveys to learn about peoples’

knowledge, beliefs, 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 INSTRUMENTQuestionnaire 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 Sangrur, Sunam.3. Sampling

Procedure:-Area sampling is using because it is not practically possible to

visit all places of India therefore Sangrur, Sunam chosen for survey.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

36

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 sangrur being a large city, it

was not possible to interact with people from all over the city or even

district.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. CHAPTER NO.

4DATA ANALYSIS

AND

37

INTERPRETATIONANALYSIS

& INTERPRETATION 1. Kind/source of milk purchased?

Packed 34

Dairy 25

Milkman 41

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 Products?

Answer Percentage

Yes 60

No 40

38

Interpretation: According

to 100 respondents 60% people says that they use to verka product and 40%

people do not use verka product.. 3: From the following which

Verka products you have used?

Products Percentage

Milk 55

Ice-Cream 25

Lassi 5

All & Others 15

Interpretation: According to 100 respondents 55% people says that they

use to use packed milk, 25% says they use ice cream and 5% says they use

verka lassi and rest are 15% used other product of verka. 4: Since when

you are using Verka milk Product?

Time in Years Percentage

1 57

39

1-5 34

More than 5 9

Interpretation:

According to 100 respondents 57% people says that they are using the milk

product 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 milk products?

Answer Percentage

Yes 45

No 55

40

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

price of verka milk product is reasonable and remaining 55% people says

that the price is not reasonable.6: What do you think about the packing

of the different Verka products?

Answer Percentage

Good 68

Ok 8

Satisfactory 9

Poor 15

Very poor 0

41

Interp

retation: According to 100 respondents 68% people says that the packing of

verka products are good, 8% people says that packing is ok, 9% says

satisfactory and remaining 15% says that the packing of verka products are

poor so according to this analysis packing is good. 7: In your opinion

taste of the Verka products are?

Answer Percentage

Good 64

Average 8

Satisfactory 18

Poor 10

Very poor 0

42

Interpretation:

According to 100 respondents 64% people says that the 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

43

Interpretation:

According to 100 respondents 13% people says that the 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

weighted

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

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.

Are you aware that full cream milk is the best for growing children &

sports person as it contain 6.0% of facts?

44

Yes 63

No 37

No37%

Yes63%

Yes No


are aware about that full cream milk is the best for growing children &

sports person as it contain 6.0% of facts and rest 37% says that they are not

aware that full cream milk is the best for growing children & sports person

as it contain 6.0% of facts.

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

Answer Percentage

Yes 24

No 76

45


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

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

advertisement.

11: When you like to buy verka products?

Answer Percentage

During Traveling 27

For Break 18

As a Health Tonic 35

For Enjoy 20

46


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.

47

CHAPTER NO .5

CONCLUSION

48

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.

49

CHAPTER .6

SWOT ANALYSIS

50

SWOT ANALYSIS

STRENGTHS:-

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

2. Good brand image of Verka products 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.

51

4. Very high rates of products such as bottle milk for Rs.15 for 200 ml.

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.

52

4. Export of quality feed under the liberalisation policy.

CHAPTER NO .7

SUGGESTION

AND

53

RECOMMENDATION

54

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

55

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

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.

56

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.

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

57

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.

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.

58

CHAPTER NO .8

BIBLOGRAPHY

59

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

60

http://www.milkfed.org/

http://www.milkfed.jp/

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

CHAPTER NO .9

ANNEXURE

61

ANNEXURE

Dear Sir/Madam

I am a student of, GJIMT, 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

62

Dairy

Milkman

2. How you ever used verka product?

Yes

No

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

Milk

Ice cream

Lassi

All & others

4. since when you are using verka milk products?

One year

1-5 years

More than 5 years

63

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

Yes

No

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 products?

Excellent

64

Good

Satisfy

Poor

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 products?

During traveling

For break

As a health tonic

For enjoy

65

66

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Gundeep Project