Milma Project

Comparative Study of Milma Chocolate with Other Brands

CHAPTER I

INTRODUCTION

Milk is an unavoidable element in the life of the keralites. In olden days,

Kerala was far ahead in production of milk. But due to several reasons

production of milk declined. Milk is the ancient as mankind itself, as it is the

substance created to feed the mammalian infant. All species all mammals from

man to whales produce milk for this purpose.

Terminology differs slightly between countries .in particular in the U.S

dairy can be a facility that processes, distributes and sells dairy products. As an

attributive the word diary refers to milk based products and derivatives and

processes. The animals and workers involved are considered as dairy cattle

and dairy workers respectively. A dairy farm produces milk and dairy

products. These establishments constitute the dairy industry, a component of

the food industry.

Chocolate comes from the seeds of the cacao plant, which is native to

South America''s tropical rain forest. At least 3000 years ago, the

Mesoamericans discovered how to process the beans to release the distinctive

chocolate flavor, and drank it as a sacred beverage. Cacao is now grown all

over the world, which annually consumes more than a million tons of

processed chocolate. But cacao yields around the world are falling, because the

pollination rate of commercially cultivated cacao plants is extremely low.

Plantations are also plagued by diseases, expensive to run, and consume

precious rain forest. Scientists have recently learned that cacao flowers are

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http://www.amnh.org/sciencebulletins/biobulletin/biobulletin/story669.html





pollinated exclusively by midges--small, gnat-like flies--which prefer moist

rain forest to sunny plantations. Eager to cultivate cacao more efficiently,

farmers are now starting to grow cacao in small patches within the forest

ecosystem, as the original Mesoamericans did.

This project is based on the comparative study of Milma chocolates with

other chocolates.

1.1. STATEMENT OF THE PROBLEM

The assigned task was to conduct a survey for a Milma. Research is

concerned with the systematic and objective collection, analysis and evaluation

of information about specific aspects in order to help management make

effective decisions.

Once the aspect is identified and defined it is the responsibility of the

researcher to chalk out a comprehensive plan explaining each step required to

conduct the research in a successful manner.

1.2.OBJECTIVE:

The main objective of this study is

1. To study comparison of Milma chocolates with other Brands.

2. To understand the popularity of Milma among the customers.

3. To understand the main competitors of Milma chocolates

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1.3 METHODOLOGY

1.3.1. PERIOD OF STUDY:

The time period was one month for the study, starting from April to May

30.

1.3.2. DATA USED:

The type of data collected comprises of Primary data and Secondary

data.

1.3.2.1. Primary data is the first hand data collected from the customers and

retailers. It was collected through questionnaire.

1.3.2.2. Secondary data for the study has been compiled from the reports and

official publication of the organization, which have been helped in getting an

insight of the present scenario existing in the operation of the company.

1.3.3. Research Instrument:

The method used for data collection was “questionnaire method”. The

questionnaire is a structured one. It was a mixture of open ended, close ended

and multiple choice. The words used were simple and helps in avoiding

confusion and misunderstanding among the respondents.

1.3.4. Research Design:

The Research design is purely and simply the framework of plan for a

study that guides the collection and analysis of data. Descriptive Research

design was used for this research.

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1.3.5. Research Approach:

Questionnaire survey method was adopted for completing the data

collection in this research.

1.3.6. Sample Design:

In designing the sample the researcher must specify three things.

1) Sampling Unit

2) Sample Size

3) Sampling Technique

1.3.6.1. Sample Size:

The size of the sample is 100.

1.3.6.2. Sampling Technique:

The technique adopted here is the probability sampling, simple random

sampling was adopted.

1.3.7. The Statistical tools applied

1. Percentage

2. Chi-Square Test

1.3.7.1 Percentage:

The earliest method used in analysis is percentage methods.

No. of respondents for each responsePercentage = ------------------------------------------------------ * 100

Total Number of respondents

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1.3.7.2. Chi-Square Test ( X2 ) :

The X2 test is one of the simplest and most widely used non-parametric test in

statistical work.

1.3.8. Charts:

Charts are the graphical representation of data. It is mainly to give a clear

picture of the collected data. Charts helps to communicate the data easily to the

viewer without consuming much time. It is done with more care and well

planned before representing the data in a pictorial form.

1.3.9. Report Presentation:

Analysis and evaluation of data transform the raw data collected during

the field survey into management information. This has communicated in an

attractive and effective information. Report is planned and also relevant to the

information needed. It is clearly represented, effectively illustrated with tables,

diagrams etc. Printing and binding is done with special care.

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CHAPTER II

PROFILES

2.1 INDUSTRY PROFILE

2.1.1. INDIAN DIARY INDUSTRY

Today, India is 'The Oyster' of the global dairy industry. It offers

opportunities galore to entrepreneurs worldwide, who wish to capitalize on one

of the world's largest and fastest growing markets for milk and milk products.

A bagful of 'pearls' awaits the international dairy processor in India. The

Indian dairy industry is rapidly growing, trying to keep pace with the galloping

progress around the world. As he expands his overseas operations to India

many profitable options await him. He may transfer technology, sign joint

ventures or use India as a sourcing center for regional exports. The

liberalization of the Indian economy beckons to MNC's and foreign investors

alike.

India’s dairy sector is expected to triple its production in the next 10

years in view of expanding potential for export to Europe and the West.

Moreover with WTO regulations expected to come into force in coming years

all the developed countries which are among big exporters today would have

to withdraw the support and subsidy to their domestic milk products sector.

Also India today is the lowest cost producer of per litre of milk in the world, at

27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to

take advantage of this lowest cost of milk production and increasing

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production in the country multinational companies are planning to expand their

activities here. Some of these milk producers have already obtained quality

standard certificates from the authorities. This will help them in marketing

their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an

accelerated pace of around 33% per annum to around Rs.43,500 crores by year

2005. This growth is going to come from the greater emphasis on the

processed foods sector and also by increase in the conversion of milk into milk

products. By 2005, the value of Indian dairy produce is expected to be Rs

10,00,000 million. Presently the market is valued at around Rs7,00,000mn

2.1.2. Background

India with 134mn cows and 125mn buffaloes, has the largest population

of cattle in the world. Total cattle population in the country as on October'00

stood at 313mn. More than fifty percent of the buffaloes and twenty percent of

the cattle in the world are found in India and most of these are milch cows and

milch buffaloes.

Indian dairy sector contributes the large share in agricultural gross

domestic products. Presently there are around 70,000 village dairy

cooperatives across the country. The co-operative societies are federated into

170 district milk producers unions, which is turn has 22-state cooperative dairy

federation. Milk production gives employment to more than 72mn dairy

farmers. In terms of total production, India is the leading producer of milk in

the world followed by USA. The milk production in 1999-00 is estimated at

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78mn MT as compared to 74.5mn MT in the previous year. This production is

expected to increase to 81mn MT by 2000-01. Of this total produce of 78mn

cows' milk constitute 36mn MT while rest is from other cattle.

While world milk production declined by 2 per cent in the last three

years, according to FAO estimates, Indian production has increased by 4 per

cent. The milk production in India accounts for more than 13% of the total

world output and 57% of total Asia's production. The top five milk producing

nations in the world are India ,USA, Russia, Germany and France.

Although milk production has grown at a fast pace during the last three

decades (courtesy: Operation Flood), milk yield per animal is very low. The

main reasons for the low yield are

Lack of use of scientific practices in milching.

Inadequate availability of fodder in all seasons.

Unavailability of veterinary health services.

Milk Yield comparison:

Country Milk Yield (Kgs per year)

USA 7002

UK 5417

Canada 5348

New Zealand 2976

Pakistan 1052

India 795

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World (Average) 2021Source: Export prospects for agro-based industries, World Trade Centre, Mumbai

2.1.3. Operation Flood

The transition of the Indian milk industry from a situation of net import

to that of surplus has been led by the efforts of National Dairy Development

Board's Operation Flood. programme under the aegis of the former Chairman

of the board Dr. Kurien.

Launched in 1970, Operation Flood has led to the modernization of

India's dairy sector and created a strong network for procurement processing

and distribution of milk by the co-operative sector. Per capita availability of

milk has increased from 132 gm per day in 1950 to over 220 gm per day in

1998. The main thrust of Operation Flood was to organize dairy cooperatives

in the milkshed areas of the village, and to link them to the four Metro cities,

which are the main markets for milk. The efforts undertaken by NDDB have

not only led to enhanced production, improvement in methods of processing

and development of a strong marketing network, but have also led to the

emergence of dairying as an important source of employment and income

generation in the rural areas. It has also led to an improvement in yields, longer

lactation periods, shorter calving intervals, etc through the use of modern

breeding techniques. Establishment of milk collection centers, and chilling

centers has enhanced life of raw milk and enabled minimization of wastage

due to spoilage of milk. Operation Flood has been one of the world's largest

dairy development programme and looking at the success achieved in India by

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adopting the co-operative route, a few other countries have also replicated the

model of India's White Revolution.

2.1.4. Fresh Milk

Over 50% of the milk produced in India is buffalo milk, and 45% is cow

milk. The buffalo milk contribution to total milk produce is expected to be

54% in 2000. Buffalo milk has 3.6% protein, 7.4% fat, 5.5% milk sugar, 0.8%

ash and 82.7% water whereas cow milk has 3.5% protein, 3.7% fat, 4.9% milk

sugar, 0.7% ash and 87% water. While presently (for the year 2000) the price

of Buffalo milk is ruling at $261-313 per MT that of cow is ruling at $170-267

per MT. Fresh pasteurized milk is available in packaged form. However, a

large part of milk consumed in India is not pasteurized, and is sold in loose

form by vendors. Sterilized milk is scarcely available in India.

Packaged milk can be divided according to fat content as follows,

Whole (full cream) milk - 6% fat

Standardized (toned) milk - 4.5% fat

Doubled toned (low fat) milk - 3% fat

Another category of milk, which has a small market is flavoured milk.

2.1.5. THE INDIAN MARKET - A PYRAMID

2.1.5.1. Consumer Habits And Practices

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Milk has been an integral part of Indian food for centuries. The per

capita availability of milk in India has grown from 172 gm per person per day

in 1972 to 182gm in 1992 and 203 gm in 1998-99.This is expected to increase

to 212gms for 1999-00. However a large part of the population cannot afford

milk. At this per capita consumption it is below the world average of 285 gm

and even less than 220 gm recommended by the Nutritional Advisory

Committee of the Indian Council of Medical Research.

There are regional disparities in production and consumption also. The

per capita availability in the north is 278 gm, west 174 gm, south 148 gm and

in the east only 93 gm per person per day. This disparity is due to

concentration of milk production in some pockets and high cost of

transportation. Also the output of milk in cereal growing areas is much higher

than elsewhere which can be attributed to abundant availability of fodder, crop

residues, etc which have a high food value for milch animals.

In India about 46 per cent of the total milk produced is consumed in

liquid form and 47 per cent is converted into traditional products like cottage

butter, ghee, paneer, khoya, curd, malai, etc. Only 7 per cent of the milk goes

into the production of western products like milk powders, processed butter

and processed cheese. The remaining 54% is utilized for conversion to milk

products. Among the milk products manufactured by the organized sector

some of the prominent ones are ghee, butter, cheese, ice creams, milk powders,

malted milk food, condensed milk infants foods etc. Of these ghee alone

accounts for 85%.

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It is estimated that around 20% of the total milk produced in the country

is consumed at producer-household level and remaining is marketed through

various cooperatives, private dairies and vendors. Also of the total produce

more than 50% is procured by cooperatives and other private dairies.

While for cooperatives of the total milk procured 60% is consumed in

fluid form and rest is used for manufacturing processed value added dairy

products; for private dairies only 45% is marketed in fluid form and rest is

processed into value added dairy products like ghee, makhan etc.

Still, several consumers in urban areas prefer to buy loose milk from

vendors due to the strong perception that loose milk is fresh. Also, the current

level of processing and packaging capacity limits the availability of packaged

milk.

The preferred dairy animal in India is buffalo unlike the majority of the

world market, which is dominated by cow milk. As high as 98% of milk is

produced in rural India, which caters to 72% of the total population, whereas

the urban sector with 28% population consumes 56% of total milk produced.

Even in urban India, as high as 83% of the consumed milk comes from the

unorganized traditional sector.

Presently only 12% of the milk market is represented by packaged and

branded pasteurized milk, valued at about Rs. 8,000 crores. Quality of milk

sold by unorganized sector however is inconsistent and so is the price across

the season in local areas. Also these vendors add water and caustic soda, which

makes the milk unhygienic.

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India's dairy market is multi-layered. It's shaped like a pyramid with the

base made up of a vast market for low-cost milk. The bulk of the demand for

milk is among the poor in urban areas whose individual requirement is small,

maybe a glassful for use as whitener for their tea and coffee. Nevertheless, it

adds up to a sizable volume - millions of litres per day. In the major cities lies

an immense growth potential for the modern sector. Presently, barely 778 out

of 3,700 cities and towns are served by its milk distribution network,

dispensing hygienically packed wholesome, quality pasteurized milk.

According to one estimate, the packed milk segment would double in the next

five years, giving both strength and volume to the modern sector. The narrow

tip at the top is a small but affluent market for western type milk products.

2.1.5.2. Growing Volumes

The effective milk market is largely confined to urban areas, inhabited

by over 25 per cent of the country's population. An estimated 50 per cent of the

total milk produced is consumed here. By the end of the twentieth century, the

urban population is expected to increase by more than 100 million to touch 364

million in 2000 a growth of about 40 per cent. The expected rise in urban

population would be a boon to Indian dairying. Presently, the organized sector

both cooperative and private and the traditional sector cater to this market.

The consumer access has become easier with the information revolution.

The number of households with TV has increased from 23 million in 1989 to

45 million in 1995. About 34 per cent of these households in urban India have

access to satellite television channel.

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2.1.5.3. Potential for further growth

Of the three A's of marketing - availability, acceptability and

affordability, Indian dairying is already endowed with the first two. People in

India love to drink milk. Hence no efforts are needed to make it acceptable.

Its availability is not a limitation either, because of the ample scope for

increasing milk production, given the prevailing low yields from dairy cattle. It

leaves the third vital marketing factor affordability. How to make milk

affordable for the large majority with limited purchasing power? That is

essence of the challenge. One practical way is to pack milk in small quantities

of 250 ml or less in polythene sachets. Already, the glass bottle for retailing

milk has given way to single-use sachets which are more economical. Another

viable alternative is to sell small quantities of milk powder in mini-sachets,

adequate for two cups of tea or coffee.

2.1.5.4. Marketing Strategy for 2000 AD

Two key elements of marketing strategy for 2000 AD are: Focus on

strong brands and, product mix expansion to include UHT milk, cheese, ice

creams and spreads. The changing marketing trends will see the shift from

generic products to the packaged quasi, regular and premium brands. The

national brands will gradually edge out the regional brands or reduce their

presence. The brand image can do wonders to a product's marketing as is

evident from the words of Perfume Princess Coco Channel: In the factory, we

pack perfume; in the market, we sell hope!

2.1.5.5. Emerging Dairy Markets

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Food service institutional market: It is growing at double the rate of

consumer market

Defense market: An important growing market for quality products at

reasonable prices

Ingredients market: A boom is forecast in the market of dairy products

used as raw material in pharmaceutical and allied industries

Parlour market: The increasing away-from-home consumption trend

opens new vistas for ready-to-serve dairy products which would ride

piggyback on the fast food revolution sweeping the urban India.

India, with her sizable dairy industry growing rapidly and on the path of

modernization, would have a place in the sun of prosperity for many decades

to come. The one index to the statement is the fact that the projected total milk

output over the next 15 years (1995-2010) would exceed 1457.6 million tonnes

which is twice the total production of the past 15 years!

2.1.5.6. Penetration of milk products

Western table spreads such as butter, margarine and jams are not very

popular in India. All India penetration of butter/ margarine is only 4%. This is

also largely represented by urban areas, where penetration is higher at 9%. In

rural areas, butter/ margarine have penetrated in 2.1% of households only. The

use of these products in the large metros is higher, with penetration at 15%.

Penetration of cheese is almost nil in rural areas and negligible in the

urban areas. Per capita consumption even among the cheese-consuming

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households is a poor 2.4kg pa as compared to over 20kg in USA. The lower

penetration is due to peculiar food habits, relatively expensive products and

also non-availability in many parts of the country. Butter, margarine and

cheese products are mainly manufactured by organized sector.

Similarly, penetration of ghee is highest in medium sized towns at

37.2% compared to 31.7% in all urban areas and 21.3% in all rural areas. The

all India penetration of ghee is 24.1%. In relative terms, penetration of ghee is

significantly higher in North and West, which are milk surplus regions. North

accounts for 57% of ghee consumption and West for 23%, South & East

together account for the balance 20%. A large part of ghee is made at home

and by small/ cottage industry from milk. The relative share of branded

products in this category is very low at around 1-2%.

Milk powder and condensed milk have not been able to garner any

significant consumer acceptance in India as indicated by a very low 4.7%

penetration. The penetration is higher at 8.1% in urban areas and lower at 3.5%

in rural areas. Within urban areas, it is relatively higher in medium sized towns

at 8.5% compared to 7.7% in a large metros.

2.1.5.7. Market Size And Growth

Market size for milk (sold in loose/ packaged form) is estimated to be

36mn MT valued at Rs470bn. The market is currently growing at round 4% pa

in volume terms. The milk surplus states in India are Uttar Pradesh, Punjab,

Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and

Tamil Nadu. The manufacturing of milk products is concentrated in these milk

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surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh,

Rajasthan, Tamil Nadu and Gujarat together account for 58% of national

production.

Milk production grew by a mere 1% pa between 1947 and 1970. Since the

early 70's, under Operation Flood, production growth increased significantly

averaging over 5% pa.

About 75% of milk is consumed at the household level which is not a

part of commercial dairy industry. Loose milk has a larger market in India as it

is perceived to be fresh by most consumers. In reality however, it poses a

higher risk of adulteration and contamination.

The production of milk products, i.e. milk products including infant

milk food, malted food, condensed milk & cheese stood at 3.07 lakh MT in

2009. Production of milk powder including infant milk-food has risen to 2.25

lakh MT in 2009, whereas that of malted food is at 65000 MT. Cheese and

condensed milk production stands at 5000 and 11000 MT respectively in the

same year.

(Source: Annual Report 2009-2010, DFPI)

2.2. ABOUT CHOCOLATES

2.2.1. History of chocolate:

The earliest record of chocolate was over fifteen hundred years ago in

the central.America rain forests, where the tropical mix of high rain fall

combined with high year round temperatures and humidity provide the ideal

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climate for cultivation of the plant from which chocolate is derived, the cacao

tree.

“ Chocolate is made from the cocoa bean, found in pods growing from the

trunk and lower branches of the cacao tree, Latin name “ theobroma cacao”

meaning “ food of the gods”

Cacao was corrupted into the more familiar “ cocoa” by the early European

explorers. The Maya brewed a spicy, bittersweet drink by roasting and

pounding the seeds of the cacao tree with maize and capsicum peppers and

letting the mixture ferment. This drink was reserved for use in ceremonies as

well as for drinking by the wealthy and religious elite; they also ate cacao

porridge.

The Aztecs, like the Mayans, also enjoyed cacao as a beverage

fermented from the raw beans, which again featured prominently in ritual and

as a luxury available only to the very wealthy. The Aztecs called this drink

xocolatl, the Spanish conquistadors found this almost impossible to pronounce

and so corrupted it to the easier “ chocolat” the English further changed this to

chocolate. The Aztec’s regarded chocolate as an aphrodisiac and their

emperor, Montezuma reputedly drank it fifty times a day from a golden goblet

and is quoted as saying of xocolatl: “ the divine drink, which builds up

resistance and fights fatigue. A cup of this precious drink permits a man to

walk for a whole day without food”

Chocolate in Europe

Xocolatl! or chocolat or chocolate as it became known, was brought to

Europe by Cortez, by this time the conquistadors had learned to make the drink

more palatable to European tastes by mixing the ground roasted beans with

sugar and vanilla ( a practice still continued today), thus offsetting the spicy

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bitterness of the brew the Aztec’s drank. The first chocolate factories opened

in Spain, where the dried fermented beans brought back from the new world

by the Spanish treasure fleets were roasted and ground, and by the early 17th

century chocolate powder – from which the European version of the drink was

made- was being exported to other parts of Europe. The Spanish kept the

source of the drink- the beans- a secret for many years, so successfully in fact,

that when English buccaneers boarded what they thought was a Spanish “

treasurer galleon” in 1579, only to find it loaded with what appeared to be “

dried sheep’s droppings, they burned the whole ship in frustration. If only they

had known, chocolate was so expensive at that time, that it was worth it’s

weight in silver ( if not gold), chocolate was treasure indeed !

Within a few years, the cocoa beverage made from the powder produced in

Spain had become popular throughout Europe, in the Spanish Netherlands,

Italy, France, Germany and – in about 1520 – it arrived in England.

The first chocolate house in England opened in London in 1657

followed rapidly by many others. Like the already well established coffee

houses, they were used as clubs where the wealthy and business community

met to smoke a clay pipe of tobacco, conduct business and socialize over a cup

of chocolate.

Back to the America’s

Event’s went full circle when English colonists carried chocolate (and

coffee) with them to England’s colonies in north America. Destined to become

the united states of America and Canada, they are now the worlds largest

consumers – by far – of both chocolate and coffee, consuming over half of the

words total production of chocolate alone.

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The Quakers

The Quakers were, and still are, a pacifist religious sect, an offshoot of

the puritans of English civil war and pilgrim fathers fame and a history of

chocolate would not be complete without mentioning their part in it. Some of

the most famous names in chocolate were Quakers, who for centuries held a

virtual monopoly of chocolate making in the English speaking world – fry,

Cadbury and row tree are probably the best known. Its probably before the

time of the English civil war between parliament and king Charles 1st that the

Quaker’s who evolved from the puritans, first began their historic association

with chocolate. Because of their pacifist religion, they were prohibited from

many normal business activities, so as an industrious people with a strong

belief in the work ethic (like the puritans), they involved themselves in food

related businesses and did very well. Baking was a common occupation for

them because bread was regarded as the biblical “staff of life”, and bakers in

England were the first to add chocolate to cakes so it would be a natural

progression for them to start making pure chocolate. They were also heavily

involved in breakfast cereals but that’s another story.

What is certain is that the fry, row tree and Cadbury families in England

among others, began chocolate making and in fact Joseph fry of fry &sons

(founded 1728 in Bristol, England) is credited with producing and selling the

world’s first chocolate bar. Fry’s have now all but disappeared (taken over by

Cadbury) and row tree have merged Swiss company nestle, to form the largest

chocolate manufacturer in the world. Cadbury have stayed with chocolate

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production and are now, if not quite the largest, probably one of the best-

known chocolate makers in the world.

Chocolate as we know it

The first mention of chocolate being eaten in solid form is when bakers

in England began adding cocoa powder to cakes in the mid 1600’s. Then in

1828 a Dutch chemist, Johannes van houten, invented a method of extracting

the bitter tasting fat or “cocoa butter” from the roasted ground beans, his aim

was to make the drink smoother and more palatable, however he unknowingly

paved the way for solid chocolate as we know it. Chocolate as we know it

today first appeared in 1847 when fry & sons of Bristol, England – mixed

sugar with cocoa powder and cocoa butter (made by the van houten process) to

produce the first solid chocolate bar then in1875 a Swiss manufacturer, Daniel

peters, found a way to combine (some would say improve, some would say

ruin) cocoa powder and cocoa butter with sugar and dried milk powder to

produce the first milk chocolate.

2.3. CHOCOLATE PRODUCTION

The cocoa-bean -- the heart of the sweetest delicacy in the world – is bitter!

This is why, up to the 18th century some native tribes ate only the sweetish

flesh of the cocoa fruit. They regarded the precious bean as waste or used it, as

was the case among the Aztecs, as a form of currency.

The Varieties

There are two quite different basic classifications of cocoa, under which

practically all varieties can be categorised: Criollo and Forastero cocoas. The

pure variety of the Criollo tree is found mainly in its native Equador and

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Venezuela. The seeds are of finer quality than those of the Forastero variety.

They have a particularly fine, mild aroma and are, therefore, used only in the

production of high-quality chocolate and for blending. However, Criollo cocoa

accounts for only 10% of the world crop. The remaining 90% is harvested

from trees of the Forastero family, with its many hybrids and varieties. The

main growing area is West Africa. The cocoa tree can flourish only in the

hottest regions of the world.

The Harvest

Immediately after harvesting, the fruit is treated to prevent it from

rotting. At fermentation sites either in the plantation or at, collecting points, the

fruit is opened.

Fermentation

The fermentation process is decisive in the production of high quality

raw cocoa. The technique varies depending on the growing region.

Drying

After fermentation, the raw cocoa still contains far too much water; in

fact about 60%. Most of this has to be removed. What could be more natural

than to spread the beans out to dry on the sun-soaked ground or on mats? After

a week or so, all but a small percentage of the water has evaporated.

Cleaning

Before the real processing begins, the raw cocoa is thoroughly cleaned

by passing through sieves, and by brushing. Finally, the last vestiges of wood,

jute fibres, sand and even the finest dust are extracted by powerful vacuum

equipment.

Roasting

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The subsequent roasting process is primarily designed to develop the

aroma. The entire roasting process, during which the air in the nearly 10 feet

high furnaces reaches a temperature of 130 °C, is carried out automatically.

Crushing and shelling

The roasted beans are now broken into medium sized pieces in the

crushing machine.

Blending

Before grinding, the crushed beans are weighed and blended according

to special recipes. The secret of every chocolate factory lies in the special

mixing ratios, which it has developed for different types of cocoa.

Grinding

The crushed cocoa beans, which are still fairly coarse are now pre-

ground by special milling equipment and then fed on to rollers where they are

ground into a fine paste. The heat generated by the resulting pressure and

friction causes the cocoa butter (approximately 50% of the bean) contained in

the beans to melt, producing a thick, liquid mixture.

This is dark brown in color with a characteristic, strong odour. During

cooling it gradually sets: this is the cocoa paste. At this point the production

process divides into two paths, but which soon join again. A part of the cocoa

paste is taken to large presses, which extract the cocoa butter. The other part

passes through various blending and refining processes, during which some of

the cocoa butter is added to it. The two paths have rejoined.

Cocoa Butter

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The cocoa butter has important functions. It not only forms part of every

recipe, but it also later gives the chocolate its fine structure, beautiful lustre

and delicate, attractive glaze.

Cocoa Powder

After the cocoa butter has left the press; cocoa cakes are left which still

contain a 10 to 20% proportion of fat depending on the intensity of

compression. These cakes are crushed again, ground to powder and finely

sifted in several stages and we obtain a dark, strongly aromatic powder, which

is excellent for the preparation of delicious drinks - cocoa. Cocoa paste, cocoa

butter, sugar and milk are the four basic ingredients for making chocolate.

Kneading

In the case of milk chocolate for example, the cocoa paste, cocoa butter,

powdered or condensed milk, sugar and flavouring - maybe vanilla - go into

the mixer, where they are pulverized and kneaded.

Rolling

Depending on the design of the rolling mills, three or five vertically

mounted steel rollers rotate in opposite directions. Under heavy pressure they

pulverise the tiny particles of cocoa and sugar down to a size of approx. 30

microns. (One micron is a thousandth part of a millimetre.)

Conching

But still the chocolate paste is not smooth enough to satisfy our palates.

But within two or three days all that will have been put right. For during this

period the chocolate paste will be refined to such an extent in the conches that

it will flatter even the most discriminating palate. Conches (from the Spanish

24 | P a g e


word "concha", meaning a shell) is the name given to the troughs in which 100

to 1000 kilograms of chocolate paste at a time can be heated up to 80 °C and,

while being constantly stirred, is given a velvet smoothness by the addition of

certain amounts of cocoa butter.

2.4. CONSUMPTION OF CHOCOLATES IN INDIA

Chocolate consumption in India is extremely low. Per capita

consumption is around 160 gms in the urban areas, compared to 8-10kg in the

developed countries. In rural areas, it is even lower. Chocolates in India are

consumed as indulgence and not as a snack food. A strong volume growth was

witnessed in the early 90’s when Cadbury repositioned chocolates from

children to adult consumption. The biggest opportunity is likely to stem from

increasing the consumer base. Leading players like Cadbury and Nestle have

been attempting to do this by value for money offerings, which are affordable

to the masses.

2.5. MAJOR PLAYERS

2.5.1. CADBURY

The Cadbury story is a fascinating study of industrial and social

developments covering well over a century and a half. It shows how a small

family business developed into an international company combining the most

sophisticated technology with the highest standards of quality, technical skills

and innovational established by the founders.

A one-man business opened in 1824 by a young Quaker, John Cadbury,

in bull street Birmingham was to be the foundation of Cadbury limited, now

one of the work’s largest producer of chocolate.

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By 1831 the business had changed from a grocery shop and Cadbury

had become a manufacturer of drinking chocolate and cocoa. This was the star

of the Cadbury manufacturing business, as it is know today.

Now the leader in the UK confection market. Cadbury limited is confectionery

division, of a major force in the confectionery and soft drinks international

market.,

Quality has been the focus of the Cadbury business from the beginning

as generations have worked to produce chocolate with that very special taste,

smoothness and snap, so characteristics of Cadbury’s more forward to extend

their business by introducing Health drinks. Now Cadbury’s is the brown

drinks (Cocoa based) segment.

2.5.2NESTLE

Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey,

Switzerland and its first product was “Farine Lactée Nestlé”, an infant cereal

specially formulated by Henri Nestlé to provide and improve infant nutrition.

From its first historic merger with the Anglo-Swiss Condensed Milk Company

in 1905, Nestlé has grown to become the world’s largest and most diversified

food Company, and is about twice the size of its nearest competitor in the food

and beverage sector.

Nestlé’s trademark of birds in a nest, derived from Henri Nestlé’s

personal coat of arms, evokes the values upon which he founded his Company.

Namely, the values of security, maternity and affection, nature and

nourishment, family and tradition. Today, it is not only the central element of

Nestlé’s corporate identity but serves to define the Company’s products,

responsibilities, business practices, ethics and goals.

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In 2010, Nestlé had around 3,47,000 employees worldwide, operated

500 factories in approx. 100 countries and offered over 8,000 products to

millions of consumers universally. The Company’s transparent business

practices, pioneering environment policy and respect for the fundamental

values of different cultures have earned it an enviable place in the countries it

operates in. Nestlé’s activities contribute to and nurture the sustainable

economic development of people, communities and nations.

Above all, Nestlé is dedicated to bringing the joy of ‘Good Food, Good

Life’ to people throughout their lives, throughout the world.

2.5.3. AMULIn 1929, Peston Edul Polson established Polson Model Dairy at Anand

to manufacture butter, ghee and casein and in 1944, the Bombay Municipal

Corporation Milk Supply was inaugurated.

Monopoly rights were awarded to Polson for Procuring milk from Kaira.

Amul's genesis is linked to the freedom movement in India. Sardar

Vallabhbhai Patel, an eminent

Indian freedom fighter encouraged the dairy farmers from the Kaira

district in Gujarat to form a cooperative to counter the 'exploitatively' low

prices offered for their milk by the monopoly milk supplier of the area,

Polson's Dairy. The dairy farmers met in Samarkha (Kaira district, Gujarat) on

the 4th of January 1946.

Initially, when the Bombay government refused to deal with the

cooperative, the farmers called a strike. The government finally relented when

Bombay went without milk for a fortnight. The successful union registered

itself as the Kaira District Cooperative Milk Producers' Union Ltd.

27 | P a g e


(KCMPUL), Anand, in Gujarat in December 1946. And so did GCMMF and

brand AMUL establish consequently.

COMPANY PROFILE- MILMA

Kerala Co-operative Milk Marketing Federation (KCMMF) popularly

called milma was established in April 1980 with its Head Office at

Thiruvananthapuram for the successful implementation of the Operation Flood

which is a dairy program me launched in 1970 under the aegis of National

Dairy Development Board (NDDB).

Operation Flood, otherwise known as white revolution is one of the

world’s largest rural development program. It has helped dairy farmers direct

their own development, placing control of the resources they create in their

own hands. According to this program a National Milk Grid links milk

producers throughout India with consumers in over 700 towns and cities

reducing seasonal and regional price variation, while ensuring that the

producers gets a major share of the consumer’s rupee. The bedrock operation

flood has been village milk producer’s co-operative which produces milk and

provide inputs and services, making modern management and technology

available to members. Kerala was introduced ill the operation flood project

during the second phase (1980-1987). The eight southern districts from

Trivandrum to Thrissur were included in the project area having a total layout

of 29 crores.

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These projects were based at Trivandrum regional co-operative milk

producers union (TRCMPU) and Ernakulam regional co-operative milk

producers union (ERCMPU) formed in 1985. The third union via Malappuram

regional co-operative milk producers union (MRCMPU) was formed in 1986.

Main Milma products

The name of milma and its motto Your Health is Our Concern, has

become synonymous with assured quality. This is amply proved by the fact of

all its products mainly Ghee, selling solely under the trade name of MILMA.

Milma has a range of products from wholesome Pasteurized Milk to Pure,

Ghee Creamy Butter, and Nourishing Sterilized Flavored milk and Ice-

crèmes .All the products strictly adhere to the PFA rule and are sent to the

market only after stringent quality checking etc.

Pasteurized milk

Milma is marketing liquid milk in pasteurized from only. There is

variety in terms of fat content in the pasteurized milma milk. They are Toned

milk which contains 3.0% fat and 8.5% other minerals, Standardized milk

which has high fat content- and another type in which fat is totally removed.

Pasteurized milk is available in 500ml and 1 liter sachets.

Ghee

Milma’s ghee is produced from either crème or butter. Milma is now

marketing ghee in different packs from 50gm to 15kg.

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Butter

Milma’s butter is prepared from crème separated from milk, Milam’s

butter contains 81%fat and below 15.6% water content. It is distributed in pack

size from 100gm to 500gm.

Ice-cream

Milma’s Ice-cream now available in Vanilla, Chocolate, Mango and

Strawberry flavours.

Flavoured milk

There is flavored milk available both in Tetra packs and carry home

bottle .The flavours such as Cardamom Pineapple Mango and Strawberry etc

are marketed by milma. A mango drink under the name Refresh is also a

product of milma in tetra packs. These products can be kept without damage

for a period of 6 months.

Dairy whitener

Dairy whitener is a partially skimmed dry milk powder which is easily

soluble in both cold and hot water. It is used as a tea/coffee whitener and

quality curd can be made out of it.

Curd

Milma sells skimmed milk curd in 500ml sachets which is well accepted

by the customers.

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Sambharam

Sambharam or buttermilk is an instant thirst quencher sold by milma in 200ml

sachets.

Milma cattle feed

Milma now producing 500MT cattle feed a day. It is distributed at a

very reasonable rate through the Anand Pattern Co-operative Societies and

Dealers.

National Dairy Development Boar

NDDB, under Dr.V.Kurien’s guidance set up KCMMF in 1980. Ever

since then, there a very close co-operative between NDDB and the Federation.

NDDB are the originators of the Operation Flood Program and had been the

funding agent for the Operation Flood project in Kerala.

Amul

The Dairy Co-operative of Gujarat has been the inspiration for the

development of such a vast network of dairy co-operatives in Kerala. Among

the co-operatives in Gujarat, Kaira District Co-operative.

The name milma represents

2,608 primary milk co-operative societies.

7.33 lakhs farmers’ members.

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Three Regional Co-operative Milk Producer’s Union.

Fourteen Milk Chilling centers.

Two cattle feed plants with cumulative capacity of 500 MT.

One Milk Power Plant of 10 MT per day capacity.

A well established Training Centers.

5000 retail outlets.

Mission of Milma

“Farmer’s prosperity through consumer’s satisfaction”.

Objectives of Milma

To channelise marketable surplus milk from the rural areas to urban

deficit areas to maximize the returns to the producer and provide quality

milk and milk product to the consumers.

To carryout activities for promoting production, procurement,

processing and milk and milk products for economy development of the

farming community.

To build up a viable dairy industry in the state.

To provide constant market and stable price to the dairy farmers of their

products.

Government of Kerala

The phenomenal success of Dairy Co-operative in Kerala could not have been

achieved without the foundation of Animal Husbandry Department, dairy

development Department and Kerala Livestock Development Board, of the

Government of Kerala.

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Milma –The Farmers Organization

Milma is an organization of farmers. They are the producers of the raw

materials milk the shareholders in the organization and the Chairman and

Board of Director are elected from among them.

The Farmers are members of the APCOS (Anand Pattern Co-operative

Societies).The president of the APCOS from the General Body of the Regional

Milk Unions, which Federation to from KCMMF.

Procurement of milk

First and foremost, milma provides assured milk market and procures

milk from even the remotest societies, twice a day the milk collection trucks

go to the societies and collect milk. In areas which are not accessible by road

other means of collection are employed.

Veterinary service

Veterinary services are the most popular component of input activities;

the veterinary wing operates two types of veterinary routes regular and

emergency.

Cattle Feed Plant

Balanced cattle feed is the major centralized input provided to the dairy

farmers of the state from the federation .There are a high level of acceptability

for this product in the market.

Training Center

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In keeping with the ideology of placing the instruments of progress in

the hands of the farmers themselves. An orientation program is offered to the

farmers to equip them with the basic and fundamentals of co-operatives,

accounting, testing, laws etc. A full-fledged training center is functioning at

Trichur.

Regional Milk Co-operative unions

In order to affect efficiency and expedite the process procurement and

marketing, KCMMF has three Regional Co-operative Milk producers Unions

in Kerala TRCMPU, ERCMPU, and MRCMPU. These three unions cover the

northern central and southern regions of the state respectively. These divisions

have helped to decentralize and democratize the functioning of the

organization.

Role of competitors in the milk market

Majority of the milk market remains with co-operative which was formed

under operation flood all over India. The milk marketing federations and its

affiliated districts milk unions control majority of the milk market in the

organized sector.

AMUL

MILMA

MOTHER ADAIRY

VERKA

NANDINI

34 | P a g e


VIJAYA

ARVIN

PARAG, ETC.

There are few major private companies which are in the forefront of dairy

product marketing such as Britania, Cadbury’s, and Nestle etc. New

international players such as Anchor, Fronteero, Compine, Landolakers etc, are

expected to enter in India market very soon either directly or through joint

ventures.

The change in retail formats and opening of big retail malls like Reliance,

Bharati wall, Trinetra etc. has started the concept of store branding.

Coming to Kerala milma still enjoys a near monopoly in the organized milk

marketing. However there are 35 to 40 brands of packaged milk being sold in

Kerala.

Some of the brands are Penta, Cowma, Balaji, Kairali, Royal, Ambadi etc.

Few charitable organizations such as PDDP, MALANADU etc, are also

having their presence in the milk market. Most of the private brands of milk

are bringing milk from other states and sell it in Kerala Through there are large

number of brands the share of each of these brands are too small. Altogether

these private brands sell around 3 lakhs liters of milk per day. In the dairy

product category all the multinational brands are available.

The total estimated milk consumptions in the state are around 85 lakhs per

day. The organized sector caters to approximately 13 lakhs liters per day.

35 | P a g e


The remaining is completely under un organized sector especially

household sales, own consumptions sale by cycle vendors etc.

Milma’s social responsibility and Plan of Milma

Milma being a framers organization catering to lakhs of milk consumer

in the state has the twin responsibility of ensuring regular market and

reasonable price to lakhs of consumer in the state at reasonable price. Milma

has successfully carrying out this social responsibility in the last few decades-

Milma’s dream is to ensure prosperity through Milk be it for the

producer or for the consumer. Milma look forward to a bright future for this

farmer’s organization and reiterate Milma’ s resolve to strive relentlessly to

make this a full-fledged co-operative of the farmers who would grow along

with the organization.

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CHAPTER III

LITERATURE SURVEY

Marketing is typically seen as the task of creating, promoting and

delivering goods and services to consumers and business. According to Duddy

and Revzan, “Marketing is the economic process by which goods and services

are exchanged and their values determined in terms of money prices”.

Traditionally a market was a physical place where buyers and sellers gathered

to exchange goods.

The term ‘market’ is derived from the Latin word “Marcatus” which

means “Merchandise”, trade or a place where actual buying and selling take

place or where buyers and sellers personally meet together to effect purchase

and sales. This clearly means that a market is a geographical area where

commodities are exposed for sale. Market is the sum total of the situation or

environment in which the resources, activities, attitudes of the buyers and

sellers, affect the sale for the product in a given area.

Economists now describe a market as a collection of buyers and sellers

who transact over particular product or product class. But the marketers view

the sellers as constituting the industry and the buyers as constituting the

market. Now a days, the market has become buyers market. In the new sense,

marketing means satisfaction of consumer needs.

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To apply marketing concept, an organization must meet three basic

needs. First, it must truly believe in the customer’s importance. All marketing

activities are focused on providing satisfaction on the customers. Second,

marketing efforts must be integrated, specific and measurable goals should be

set; all marketing activities should be co-ordinated. Finally, management must

accept the assumption that profit goals will be reached through satisfied

customers.

Key assumptions of the marketing concept

Brand positioning and overall customer attitude:

Branding:

A brand is a name, term, symbol or design or a combination of them which is

intended to identify the goods or services of one seller or group of sellers and

to difference them from those of the competitors.

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Branding refers to decisions about names, including brands, brand names,

brand marks and trade marks. A brand name is the part of a rand that can be

verbalized; it includes letters word and numbers. A brand name is sometimes a

product’s only distinguishing characteristics. A brand mark is a symbol, design

or other element of brand that cannot be spoken. When a brand name or brand

mark is registered and legalized. It becomes a trade mark.

Advantages of branding (Consumers)

a) When a product is distinguishable by its brand, consumer has an

assurance of quality and consistency in the products attributes being

offered.

b) Certain brands provide status and prestige to consumers, which endow

them, a some what conspicuous psychological satisfaction otherwise not

normally available.

c) These are a considerable saving of time and energy in shopping for

goods because a brand renders product identification much better.

d) Price of ranted goods is uniform throughout the country.

Disadvantages:

a) Popularity of brand renders them out of the common man’s reaches

because they command a premium price.

b) Brand royalty helps save time and energy in product selection but it

discharges the consumer from trying out other new brands, which may

possibly be more satisfying.

c) Quality is not assured under all circumstances.

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Important functions of branding are below:

1) It helps in product identification and gives “distinctive” to product.

2) Indirectly it indicates the quality or standard of the product.

3) It eliminates the imitation of the product.

4) It ensures legal right on the product.

5) It helps in advertising and packing activities.

6) It helps to create and sustain brand loyalty to particular product.

7) It helps in price differentiation of the products.

Brand Positioning:

Brand positioning refers to “target consumer’s” reason to buy your

brand in preference to others. It is ensures that all brand activity has a

common aim; is guided, directed and delivered by the brand’s benefits/reasons

to buy; and it focuses at all points of contact with the consumer.

Brand positioning must make sure that:

Is it unique/distinctive vs. competitors?

Is it significant and encouraging to the niche market?

Is it appropriate to all major geographic markets and businesses?

Is the proposition validated with unique, appropriate and original

products?

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Is it sustainable - can it be delivered constantly across all points of

contact with the consumer?

Is it helpful for organization to achieve its financial goals?

Is it able to support and boost up the organization?

In order to create a distinctive place in the market, a niche market has to be

carefully chosen and a differential advantage must be created in their mind.

Brand positioning is a medium through which an organization can portray its

customers what it wants to achieve for them and what it wants to mean to

them. Brand positioning forms customer’s views and opinions.

Brand Positioning can be defined as an activity of creating a brand offer in

such a manner that it occupies a distinctive place and value in the target

customer’s mind. For instance-Kodak Mahindra positions itself in the

customer’s mind as one entity- “Kotak ”- which can provide customized and

one-stop solution for all their financial services needs. It has an unaided top of

mind recall. It intends to stay with the proposition of “Think Investments,

Think Kotak”. The positioning you choose for your brand will be influenced

by the competitive stance you want to adopt.

Brand Positioning involves identifying and determining points of similarity

and difference to ascertain the right brand identity and to create a proper brand

image. Brand Positioning is the key of marketing strategy. A strong brand

positioning directs marketing strategy by explaining the brand details, the

uniqueness of brand and it’s similarity with the competitive brands, as well as

the reasons for buying and using that specific brand. Positioning is the base for

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developing and increasing the required knowledge and perceptions of the

customers. It is the single feature that sets your service apart from your

competitors. For instance- Kingfisher stands for youth and excitement. It

represents brand in full flight.

Customer’s attitude towards a particular brand:

The direct formation of attitudes is linked to the experiential perspective.

For forming attitude directly, the following elements are considered.

- Classical conditioning/associative learning--positive affect is attached to

object

- Mere exposure--frequent exposure to stimulus increases liking for it.

Derived from Butterfly effect.

- Moods--mood at the time of exposure to object influences feelings about

object.

There are three major factors that are predictive of attitudes. They are

Salient Beliefs

Strength of the Belief

Evaluation

There exist two types of influences regarding the consumer’s attitude. They

are internal and external influences.

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Internal influences:

Customer attitude is influenced by demographic factors, psychographic

factors, personality, motivation, knowledge, attitude, beliefs and feelings.

Customer attitude concerned with consumer need, consumer actions in the

direction of satisfying needs leads to thus behavior of every individual depend

on thinking process.

In simple terms attitude refers to what a person feels or believes about

something. Additionally, attitude may be reflected in how an individual acts

based on his or her beliefs. Once formed, attitudes can be very difficult to

change. Thus, if a consumer has a negative attitude toward a particular issue it

will take considerable effort to change what they believe to be true.

Marketers facing consumers who have a negative attitude toward their

product must work to identify the key issues shaping a consumer’s attitude

then adjust marketing decisions (e.g., advertising) in an effort to change the

attitude. For companies competing against strong rivals to whom loyal

consumers exhibit a positive attitude, an important strategy is to work to see

why consumers feel positive toward the competitor and then try to meet or beat

the competitor on these issues. Alternatively, a company can try to locate

customers who feel negatively toward the competitor and then increase

awareness among this group.

External influences:

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Customer attitude or consumer behaviour is influenced by culture, sub-

culture, locality, family, social class, reference group and marketing mix

factors.

It also includes perception and learning.

Perception:

It is a process of attaining awareness or understanding of sensory information.

Learning:

It is acquiring new knowledge, behaviour, skill, values, preferences or

understanding and may involve synthesizing different types of information.

The ability to learn is preceded by humans, animals and machines.

Marketing Research

Marketing research may be defined as the objective and systematic design,

collection, and analysis and reporting of data and findings relevant to a specific

marketing situation facing the company.

According to G.B Giles, “Marketing research may be defined as the objective

and systematic collection, recording analysis, and interpretation and reporting

of information about-

Existing potential markets

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Marketing strategies and tactics

Interaction between markets

Marketing methods and

Current or potential products or services.

Scope of Marketing Research

The marketing research aids the marketers in ascertaining various factors.

Some of them are,

1. Aids in manufacturing by of aids the manufacturers in product

planning, product pricing etc.

2. Aids in the distribution of the product through ascertainment

market conditions, understanding the market policies and

strategies etc.

Marketing research process:

The following are the different steps in marketing research.

1. Define the problem and research objectives.

The researcher must know what the management wants him to do. So the

problem must be defined carefully and precisely. The research objectives are

also to be set out in this page.

2. Develop the research plan.

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The second stage of marketing research calls for developing the most efficient

plan for gathering the needed information. The cost of plan also specified in

this stage.

3. Collect the information.

This is the most expensive phase in marketing research. The data may be

collected through survey method, interviews etc. The data may be collected by

way of primary data collection or secondary data collection.

4. Analyze the information.

It is the important stage in the research process. Correct analysis and

interpretation of the data makes the research meaningful and purposeful.

Various statistical tools may be used for the research analysis. So investor

should have an adequate knowledge of various techniques like correlation,

measures of central tendency, averages etc are a must.

5. Present the findings

At the last step, the research should present findings that are relevant to the

major marketing decisions facing management.

6. Make the decision.

The manager knows that the findings could suffer from variety of errors. If

their confidence is low they may decide against the research findings. They

may even decide to conduct a further study.

Limitations of marketing research.

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1. Marketing research cannot predict future market behaviour accurately in

many areas. In fact, many predictions go wrong and become untrue.

2. Lack of qualified personnel is another problem related to market research.

3. Marketing research using the technique of science, but it itself is not an

exact science, therefore the result obtained are not very accurate as

compared to physical and chemical science.

4. Market research is carried out in open market place where so many

variables are acting on the research setting. It is not comparable to the

controlled laboratory situation as available in physical and other exact

science.

5. Marketing research is carried out on consumers, dealers etc who are

human beings. Human beings have a tendency to behave artificially when

they know that they are being observed, so the attitudes, opinion, believes

etc are being studied. This aspect of human behaviours distorts the market

research results.

6. The marketing research projects take generally long period than other

ones. The time by which the research results are represented market

situations also undergoes changes. Hence the time gap affects the

successful implementation of research results.

7. Relatively a few business personal are competent to undertake research

projects.

8. Lack of appropriate training to search leads to misrepresentation of data

collection.

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9. In India, research is taken as time wasting and resource wasting activity.

Time and money remain the major limitations worth mentioning in all

sorts of marketing research studies. This discourages the researches and

in term them do not give their to the organization.

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CHAPTER IV

ANALYSIS AND INTERPRETATION

4.1. LOCATION OF THE RESPONDENTS

4.1.1. TABLE -LOCATION OF THE RESPONDENTS

LOCATION Rural Urban TOTAL

NO. OF RESPONDENTS 36 64 100

PERCENTAGE 36% 64% 100%

4.1.2. FIGURE - LOCATION OF THE RESPONDENTS

Inference:

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The table above shows the location to which the respondents belong. In the above analysis it is shown that 82% of respondents belong to urban area and 18% belong to rural area.

4.2. MODE OF PURCHASE

4.2.1. TABLE - MODE OF PURCHASE

MODE

Once in a

fortnight

DailyWeekl

yMonthl

yQuarterl

yTOTA

L

NO. OF RESPONDENTS

61 18 39 25 13 100

PERCENTAGE 61% 18% 39% 24% 13% 100

4.2.2. FIGURE - MODE OF PURCHASE

Inference:

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The above table shows that the majority (39%) of the respondents purchases chocolates in a weekly base.

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4.3. FORM OF CHOCOLATE LIKES TO CONSUME

4.3.1. TABLE - FORM OF CHOCOLATE LIKES TO CONSUME

ChoiceHard

Nutties

Crunchy

Chew

Others

Total

NO. OF RESPONDENTS

17 34 42 7 0 100

Percentage 17% 34% 42% 7% 0100%

4.3.2. FIGURE - FORM OF CHOCOLATE LIKES TO CONSUME

Inference:

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The above table shows that the 42% of the respondents like to consume crunchy chocolates, 34% like to consume Nutties, 17% like hard and the rest 7% of the respondents like to consume chewy chocolate.

4.4. SOURCE OF INFORMATION ABOUT THE MILMA CHOCOLATES

4.4.1. TABLE - SOURCE OF INFORMATION ABOUT THE MILMA CHOCOLATES

SOURCEAdvertise-

mentRetail-

ersMarketing executives

Friends/relatives

Others TOTAL

NO. OF RESPONDENT

S

24 45 0 23 8 100

PERCENTAGE

24% 45% 0 23% 8% 100%

4.4.2. FIGURE - SOURCE OF INFORMATION ABOUT THE MILMA CHOCOLATES

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Inference:

The above table shows that the majority (45%) of the respondents got information about the Milma chocolates from the retailers.

4.5. AMONG MILMA CHOCOLATES WHICH CHOCOLATE DID THE RESPONDENT MORE LIKE?

4.5.1. TABLE - AMONG MILMA CHOCOLATES WHICH CHOCOLATE DID THE RESPONDENT MORE LIKE?

ChoiceMilma

chocochat

White Éclair

s

Milky thunde

r

Chocobeats

Others

Total

NO. OF RESPONDENT

S23 34 19 15 9 100

Percentage 23% 34% 19% 15% 9%100%

4.5.2. FIGURE - AMONG MILMA CHOCOLATES WHICH CHOCOLATE DID THE RESPONDENT MORE LIKE?

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Inference:

From the above table, 34% of the respondents like White Éclairs, 23% like Milma chocochat, 19% like Milky Thunder, 15% like Chocobeats, and 9% of the respondents like other chocolates of Milma.

4.6. REASON FOR PURCHASING MILMA CHOCOLATES

4.6.1. TABLE - REASON FOR PURCHASING MILMA CHOCOLATES

Reason Taste Brand name

Low price

Quality Others Total

NO. OF RESPONDENTS

47 22 17 21 9 100

Total 47% 22% 17% 21% 9% 100%

4.6.2. FIGURE- REASON FOR PURCHASING MILMA CHOCOLATES

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Inference:

From the above table shows, 47% of the respondents are opinioned that taste is the main reason for purchasing Milma chocolates, 22% of the respondents prefer to purchase Milma chocolates because of its brand name, 21% purchase Milma because of quality, 17% are opinioned that low price as the reason for purchasing, and 9% of the customers have other reasons to purchase Milma chocolates.

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4.7. SATISFACTION LEVEL OF THE CUSTOMERS

4.7.1. TABLE - SATISFACTION LEVEL OF THE CUSTOMERS

Opinion Highly Satisfied

Satisfied

Highly Dissatisfied

Dissatisfied

No opinion

Total

No. Of respondents

14 77 1 2 6 100

Total 14% 77% 1% 2% 6% 100%

Source: Primary data

4.7.2. Figure - SATISFACTION LEVEL OF THE CUSTOMERS

Interference:

The above table shows that majority(77%) of the respondents are satisfied with using Milma chocolates, 14% of the respondents are highly satisfied, 2% are dissatisfied and 1% are highly dissatisfied in using Milma chocolates.

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4.8. BRANDS OF CHOCOLATES USED OTHER THAN MILMA

4.8.1. TABLE - BRANDS OF CHOCOLATES USED OTHER THAN MILMA

Brands Cadbury Nestlé Lotte Mars Others Total

No. Of respondents

47 31 7 15 0 100

Percentage 47% 31% 7% 15% 0% 100%

4.8.2. Figure - BRANDS OF CHOCOLATES USED OTHER THAN MILMA

Inference:

The above table shows that the chocolates respondents use other than Milma. 47% of the respondents use Cadbury, 31% use Nestle, 15% use mars and 7% are using Lotte chocolates.

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4.9. RESPONDENT’S OPINION ABOUT REASONABLE PRICE OF THE CHOCOLATES

4.9.1. TABLE - RESPONDENT’S OPINION ABOUT REASONABLE PRICE OF THE CHOCOLATES

Price Below 5 5-10 10-15 15-20 20-Above

Total

No. Of respondents 12 43 30 13 2 100

Percentage 12% 43% 30% 13% 2% 100%

4.9.2. FIGURE - RESPONDENT’S OPINION ABOUT REASONABLE PRICE OF THE CHOCOLATES

Inference:

From the above table, it is clear that most (43%) of the customers are opinioned that the reasonable price of the chocolate products is 5-10 rupees, 30% of the respondents are of the opinion that the reasonable price of chocolates is between 10-15 Rupees.

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4.10. RESPONDENT OPINION ABOUT THE CURRENT PRICE OF MILMA CHOCOLATES

4.10.1. TABLE - RESPONDENT OPINION ABOUT THE CURRENT PRICE OF MILMA CHOCOLATES

Opinion Excellent Good Average Bad Very Bad Total


Percentage 52% 23% 16% 9% 0 100%

4.10.2. FIGURE - RESPONDENT OPINION ABOUT THE CURRENT PRICE OF MILMA CHOCOLATES

Inference:

The above table shows the customers opinion about the current price of the Milma chocolate products. From the 100 respondents, majority (52%) of the total respondents are opinioned that the current price of Milma chocolates is excellent.

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4.11. RESPONDENT OPINION ABOUT THE AVAILABILITY OF MILMA PRODUCTS IN THE STORES

4.11.1. TABLE - RESPONDENT OPINION ABOUT THE AVAILABILITY OF MILMA PRODUCTS IN THE STORES

Availability Excellent Good Average Bad Very Bad Total


Percentage 2% 8% 53% 24% 13% 100%

4.11.2. FIGURE - RESPONDENT OPINION ABOUT THE AVAILABILITY OF MILMA PRODUCTS IN THE STORES

Inference:

The above table shows the availability of Milma products in the stores. 53% of the total respondents are having the opinion that the availability of Milma products is average, 24% are of the opinion that the availability of Milma products is bad.

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4.12. RESPONDENT OPINION ABOUT THE POPULARITY OF THE PRODUCT

4.12.1. TABLE - RESPONDENT OPINION ABOUT THE POPULARITY OF THE PRODUCT

Popularity Excellent Good Average Bad Very Bad Total


Percentage 11% 20% 37% 23% 9% 100%

4.12.2. FIGURE - RESPONDENT OPINION ABOUT THE POPULARITY OF THE PRODUCT

Inference:

The above table shows about the popularity of the chocolate products of Milma, 37% of the respondents are opinioned that it have an average popularity, 23% are opinioned that popularity is bad.

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4.13. RESPONDENT OPINION ABOUT THE BRAND NAME

4.13.1. TABLE - RESPONDENT OPINION ABOUT THE BRAND NAME

Choice Excellent Good Average Bad Very Bad

Total


Percentage 26% 43% 31% 0 0 100%

4.13.2. FIGURE - RESPONDENT OPINION ABOUT THE BRAND NAME

Inference:

The above table shows that 43% of the total respondents are of the opinion that brand name of Milma is good, 31% are opinion that the Milma is having an average brand, 26% of the respondents are of the opinion that the brand name of Milma is excellent.

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4.14. RESPONDENT OPINION ABOUT THE QUALITY OF MILMA CHOCOLATES

4.14.1. TABLE - RESPONDENT OPINION ABOUT THE QUALITY OF MILMA CHOCOLATES


Total

No. Of Respondents

26 41 33 0 0 100

Percentage 26% 41% 33% 0 0 100%

4.14.2. FIGURE - RESPONDENT OPINION ABOUT THE QUALITY OF MILMA CHOCOLATES

Inference:

The table above shows the quality of the Milma chocolates, here 41%

are having good opinion regarding the quality of the products, 33% have an

average opinion about the quality and 26% have an excellent opinion regarding

the quality of the Milma chocolates.

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4.15. TO SHOW THE DEGREE OF CORRELATION BETWEEN THE

MALE AND FEMALE RESPONDENTS AND THE TASTE OF

MILMA CHOCOLATES

4.15.1. TABLE - TO SHOW THE DEGREE OF CORRELATION BETWEEN THE MALE AND FEMALE

RESPONDENTS AND THE TASTE OF MILMA CHOCOLATES

Choice X Rx Y Ry D = Rx- Ry D2

Excellent 10 2 40 1 1 1

Good 40 1 10 2 -1 1

Average 0 0 0 0 0 0

Bad 0 0 0 0 0 0

Very bad 0 0 0 0 0 0

D2 = 2

Where X = Male respondents

R = 1 - Rx = Ranks of male respondents

Here N = 5, D2 = 2 Y = Female respondents

R = 1 - Ry = Ranks of female respondents

R = 0.9

The coefficient or rank correlation states that the responses of male and

female are positively correlated. That is, the opinions regarding the taste of

milma chocolates are somewhat similar, ie, there exists a positive correlation.

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4.16. RESPONDENT OPINION ABOUT THE PACKAGING OF THE MILMA CHOCOLATES

4.16.1. TABLE - RESPONDENT OPINION ABOUT THE PACKAGING OF THE MILMA CHOCOLATES


Total

No. Of Respondents

3 33 48 16 0 100

Percentage 3% 33% 48% 16% 0 100%

4.16.1. FIGURE - RESPONDENT OPINION ABOUT THE PACKAGING OF THE MILMA CHOCOLATES

Inference:

The table above deals with the packing of the Milma chocolates, here it is clearly understood that 48% of the respondents are having an average opinion regarding the packing of the Milma chocolates.

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4.17. CHI-SQUARE TEST

THE PACKING OF THE CHOCOLATES MAKE ANY INFLUENCE

ON THE SALES OF THE CHOCOLATES

Strongly agree

AgreeStrongly disagree

DisagreeNo

opinionTotal

Male 10 38 0 2 0 50

(%) 20 76 0 4 0 100

Female 28 22 0 0 0 50

(%) 56 44 0 0 0 100

Total 38 60 0 2 0 100

H0 : Packing is do not make any influence on the sales of the

chocolates.

H1 : packing influence on the sales of the chocolates.

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EXPECTED FREQUENCY

Male Female

O E O E

Strongly agree 10 19 28 19

Agree 38 30 22 30

Strongly disagree 0 0 0 0

Disagree 2 1 0 1

No opinion 0 0 0 0

Calculated value of X2 = 14.8

Degree of freedom = 4

Table value of X2 = 9.488 (at 5% level of significance)

Decision

From the above analysis, the calculated value of X2 is greater than the table value and hence, the null hypothesis is rejected. So there is an influence of packing on sales of the products.

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4.18. RESPONDENT OPINION ABOUT THE PRESENT ADVERTISEMENT OF MILMA CHOCOLATES

4.18.1. TABLE - RESPONDENT OPINION ABOUT THE PRESENT ADVERTISEMENT OF MILMA CHOCOLATES


Total

No. Of Respondents

3 33 48 16 0 100

Percentage 3% 33% 48% 16% 0 100%

4.18.2. FIGURE - RESPONDENT OPINION ABOUT THE PRESENT ADVERTISEMENT OF MILMA CHOCOLATES

Inference:

The table above deals with the advertisement of the Milma chocolates, here it is clearly understood that 41% of the respondents are having an average opinion regarding the advertisement of the Milma .

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4.19. CHI-SQUARE TEST

ADVERTISEMENT IS A METHOD FOR CREATING DEMAND AND

POPULARITY

Strongly agree

AgreeStrongly disagree

DisagreeNo

opinionTotal

Male 10 30 8 0 2 50

(%) 20 60 16 0 4 100

Female 25 15 6 0 4 50

(%) 50 30 12 0 8 100

Total 35 45 14 0 6 100

H0 : Advertisement is not a method for creating demand and popularity

H1 : Advertisement is a method for creating demand and popularity

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Expected Frequency

Male Female

O E O E

Strongly agree 10 17.5 25 17.5

Agree 30 22.5 15 22.5

Strongly disagree 8 7 6 7

Disagree 0 0 0 0

No opinion 2 3 4 3

Calculated value of X2 = 12.38

Degree of freedom = 4

Table value of X2 = 9.488 (at 5% level of significance)

Decision

From the above analysis the calculated value of X2 in greater than the

table value and hence the null hypothesis is rejected. So advertisement affects

the demand and popularity of the products.

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4.20. THERE IS A NEED FOR ACTION ORIENTED ADVERTISEMENT IS REQUIRED FOR BUILDING A BRAND

IMAGE

4.20.1. TABLE - THERE IS A NEED FOR ACTION ORIENTED ADVERTISEMENT IS REQUIRED FOR BUILDING A BRAND

IMAGE

Choice Strongly agree

Agree Neutral DisagreeStrongly disagree

Total

No. Of Respondents

68 21 10 1 0 100

Percentage 68% 21% 10% 1% 0 100%

4.20.2. FIGURE - THERE IS A NEED FOR ACTION ORIENTED ADVERTISEMENT IS REQUIRED FOR BUILDING A BRAND

IMAGE

Inference:

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The above table shows that 68% of the total respondents are of the opinion that action oriented advertisement are required for building up a brand image.

4.21.RESPONDENT OPINION ABOUT THE PRESENT DEMAND OF MILMA CHOCOLATES

4.21.1. RESPONDENT OPINION ABOUT THE PRESENT DEMAND OF MILMA CHOCOLATES

Choice Highly demanded

Demanded MediumPoor

demand

Very poor

demand

Total

No. Of Respondents

1 20 41 26 12 100

Percentage 1% 20% 41% 26% 12% 100%

4.21.2. RESPONDENT OPINION ABOUT THE PRESENT DEMAND OF MILMA CHOCOLATES

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Inference

The table above shows the present demand of the Milma chocolates,

here 41% are having medium opinion regarding the demand of the products.

4.22. RESPONDENT OPINION ABOUT THE MAJOR COMPETITORS OF MILMA CHOCOLATES

4.22.1. TABLE - RESPONDENT OPINION ABOUT THE MAJOR COMPETITORS OF MILMA CHOCOLATES

Choice Nestley Cadbury Lotte Mars Others Total

No. Of Respondents

35 44 8 11 2 100

Percentage 35% 44% 8% 11% 2% 100%

4.22.2. FIGURE - RESPONDENT OPINION ABOUT THE MAJOR COMPETITORS OF MILMA CHOCOLATES

Inference:

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The above table shows that the competitors of Milma chocolates here 44% are of the opinion that Cadbury is the major competitors of Milma, 35% are of the opinion that nestle is the major competitors of Milma, 22% are of the opinion that mars is the major competitors of Milma chocolates.

TABLE NO. 21

4.23. RESPONDENT OPINION ABOUT THE FACTORS THAT MILMA DIFFER FROM OTHERS

4.23.1. TABLE - RESPONDENT OPINION ABOUT THE FACTORS THAT MILMA DIFFER FROM OTHERS

Choice Trust worthy

Brand image

Products Goodwill Others Total

No. Of Respondents

39 14 9 25 13 100

Percentage 39% 14% 9% 25% 13% 100%

4.23.2. FIGURE - RESPONDENT OPINION ABOUT THE FACTORS THAT MILMA DIFFER FROM OTHERS

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Inference:

The table shows the factors that differs Milma from others, here 39%of the respondents are giving the opinion that trust worthy is the main factors that make Milma products different from others

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CHAPTER VI

FINDINGS SUGGESTIONS AND CONCLUSION

Findings

1. Majority of the respondents purchases chocolates in a weekly base.

2. Majority of the respondents like to consume crunchy chocolates.

3. Majority of the respondents got information about the Milma chocolates

from the retailers

4. Most of the respondents like White Éclairs

5. Majority of the respondents are opinioned that taste is the main reason

for purchasing Milma chocolates.

6. Majority(77%) of the respondents are satisfied with using Milma

chocolates,

7. Majority of the respondents use Cadbury

8. Most (43%) of the customers are opinioned that the reasonable price of

the chocolate products is 5-10 rupees,

9. Majority (52%) of the total respondents are opinioned that the current

price of Milma chocolates is excellent

10.Most of the total respondents are having the opinion that the availability

of Milma products is average, 24% are of the opinion that the

availability of

11.Majority of the respondents are opinioned that it have an average

popularity

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12.Majority of the total respondents are of the opinion that brand name of

Milma is good

13.Most of the respondents are having good opinion regarding the quality

of the products.

14.Majority of the respondents are having an average opinion regarding the

packing of the Milma chocolates

15.It is found out that there is an influence of packing on sales of the

products.

16.Majority of the respondents are having an average opinion regarding the

advertisement of the Milma chocolates

17.Advertisement affects the demand and popularity of the products.

18.Majority of the total respondents are of the opinion that action oriented

advertisement are required for building up a brand image,

19.Most are having medium opinion regarding the demand of the products

20.Most of the respondents are of the opinion that Cadbury is the major

competitors of Milma

21.Majority of the respondents are giving the opinion that trust worthy is

the main factors that make Milma products different from others

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Suggestions

1. The company should indulge in giving more advertisement to attract

customers.

2. Mostly the chocolates are attracted by children’s, So the company

should focus on such kinds of customers.

3. The company should improve the quality of the products.

4. The company should produce variety of products to attract the peer

group.

5. The company should increases distribution channel of Milma chocolates

to increase the sales and demand of the product.

6. More attractive designs and packing should be introduced by the

company.

7. Regular advertisement on TV should be given. Hoardings and other

methods of advertisement should be introduced by the company for

increasing the sales.

8. Attractive promotional offers should be given by the company to attract

more customers.

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Conclusion

Chocolates are a weakness not only to the children but for everyone.

That is why most of the chocolate companies are flourishing in the market. It

mainly depends on the taste of the product. Here in our country the major

producers of chocolates are the Cadbury, Nestle, Mars etc. so it is difficult for

a new industry to flourish in the market.

Milma is an existing industry in milk products but the market is limited

to Kerala. The major aim of the company is to increase the market to a higher

range. From the analysis done its is found that the Milma chocolates is not

having much popularity among the customers. The main reason for this is that

it is not having a good marketing strategy and the competition is also high, the

company should enlarge the market and should take necessary steps to get into

the market of chocolates and to compete with the chocolate giants.

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BIBLIOGRAPHY

Books:-

1. Kotler Philip, “Marketing management”, Prentice-Hall of India Pvt Ltd,

New Delhi, 8th e.d., 2006.

2. Kothari C.R, “Research Methodology”, New Age International(P) Ltd,

New Delhi,2nd e.d., 2007.

3. Schoell F William & Guiltinan P Joseph, “Marketing: Contemporary

Concepts & Practices”, 5th e.d., 2006.

4. Periodicals, Magazines, Notices, Brochures, Books etc, of the Company

5. Joshi R.L., Manoria C.B, Principles and practices of marketing in India,

Kitab Mahal 1985

6. R.L Potti., Quantitative Techniques, Yamuna Publications, 2002.

Web-sites visited:-

1. www.milma.com

2. www.milkindustry.com

3. www.wikipedia.edu

4. http://en.wikipedia.org/wiki/Textile_manufacturing

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http://www.milma.com/


ANNEXURE

Comparative study of milma chocolate with other brands

QUESTIONNAIRE TO CUSTOMERS

1. Name:

2. Age:

3. Gender: M F

4. Occupation:

5. Family income:

6. Location: Rural Urban

7. How frequently do you purchase chocolates?

Once in a fortnight Daily Weekly monthly

Quarterly

8. Which form of chocolates do you like?

Hard Nutties Crunchy Chew

9. Do you Use Milma Chocolates?

Yes No

10.Where did you get information about the Milma Chocolates?

Advertisement Friend/Relatives Others

11.Among Milma chocolates which chocolates you have used?

White éclairs Milky thunder

Milma Chocolate Chocobeats Others

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12.What are the brands of chocolates used by you other than Milma?

Nestle Cadbury Others

13.What is the reason for purchasing Milma chocolates?

Taste Quality Low price Brand name

14. Are you satisfied with Milma chocolates?

Highly Satisfied Satisfied Highly Dissatisfied

Dissatisfied No opinion

15. What according to you is the reasonable price of the chocolate?Below 5 5-10 10-15 15-20 20-above

16.What is your opinion about the current price of the Milma products? Excellent Good Average Bad Very Bad

17.What is your opinion about the availability of Milma products in stores?

Excellent Good Average Bad Very Bad

18. What is your opinion about the popularity of the product?


19.What is your opinion about the brand name?Excellent Good Average Bad Very Bad

20.What is your opinion about the packaging of the Milma chocolates?Excellent Good Average Bad Very Bad

21.What is your opinion about the quality of Milma chocolates?Excellent Good Average Bad Very Bad

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22. What is your opinion about the promotional offers provided by Milma

Chocolate?

Good Average Poor

23. What is your opinion about the advertisement of Milma chocolates?


24. Do you think the packing of the chocolates influence the sales of the

product?

Strongly Agree Agree Strongly Disagree Disagree

No Opinion

25.Do you think that advertisement is a method for creating demand and

popularity?


No Opinion

26.Do you agree that there is a need for Action oriented advertisement is

required for building a brand image?


No Opinion

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27.According to your opinion is there demand for Milma chocolates?

Highly demanded Demand Medium

Poor demand Very poor demand

28.Who do you think are the biggest competitors of milma chocolates?

Nestley Cadbury Lotte Mars Others

29. Do you think that the marketing strategy adopted by milma is adequate

to overcome the tough competition?

Yes No

30.What are the factors that make Milma differ from others?

Trust worthy Brand image Products Goodwill

Others

31. Will you recommend the Milma chocolates to your relatives and

friends?

Yes No

Give suggestions if any….

Thank you for your time and effort.

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Documents

Milma Project