Sanket Dhariwal Final Project

A Project Report

On

“A STUDY OF PHYSICAL DISTRIBUTION OF

GODAVARI MILK DAIRY”

At

Godavari Khore Namdeoraoji Parjane Patil

Taluka Sahakari Dudh Utpadak Sangh Ltd., Kopargaon

In Partial Fulfillment for the Award of the Degree

Masters Degree Course In Business Administration

University of Pune

2012-2013

Submitted By

Mr.Sanjay Abasaheb Devkar

(M.B.A. Sem-III, Marketing)

Under the Guidance of

Prof. kopare sir

(M.B.A.)

ACKNOWLEDGMENT

It is my great privilege to express my gratitude lo Godavari Milk Dairy, Kopargaon for

giving me opportunity to undergo my summer training in this prestigious organization under

highly experienced executives. My sincere regards to Mr. C.S.GADVE (Managing Director)

Godavari Milk Dairy.

I also wish to express my sincere thanks to Mr. P.K.NANDY (Dairy Manager) under

whose guidance and supervision, I successfully completed my summer training.

Last but not the least I take an opportunity to thank all those who responded carefully to

my questionnaire, as well as my friends and Godavari milk dairy staff members.

I would like to show my sincere thanks to Prof. S,N.D COOLEGE, PUNE

UNIVERSITY, For their support and guidance and time to time help. Without whose

cooperation, it would have been a difficult task to accomplish this project.

Mr.Sanjay Abasaheb Devkar

MBA-Marketing

DECLARATION BY REASEARCH STUDENT

I hereby declare that this project report tittled A study of physical distribution Godavari

milk dairy submitted by me is based on actual work carried out by me under the guidance

and supervision of Mr .P.K.Nandy.Any reference to work done by any other person or

institution or any material obtained from other sources have been duly cited and

refercenced.It is further to state that this work is not submitted any where else for any

examination

DATE SANJAY ABASAHEB DEVKAR

INDEX

Sr. No. Particulars Page No.

1 Preface

2 Executive Summary

3 Objective of Project

4 Company Profile

4.1 History

4.2 Fact File

4.3 Godavari Logo

5 Godavari Success

6 Research Methodology

7 Production Process

8 Taste of Competition

9 Financial Performance

10 Data Analysis & Interpretation

11 Findings of Research

12 Questionniar

13 Suggestions

14 Bibliography

Annexure

PREFACE

Marketing deals with identifying and meeting human and social needs. One Other

shortest definitions of marketing is "meeting needs profitably." Marketers are skilled in

stimulating demand for their products. However, this is too limited a view of the tasks that

marketers perform. Just as production and logistics professionals are responsible for supply

management, marketers are responsible for demand management. The American Marketing

Association offers this managerial definition: Marketing (management) is the process of

planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and

services to create exchanges that satisfy individual and organizational goals.

Whereas marketing channels connect the marketer to the target buyers, the supply chain

describes a longer channel stretching from raw materials to components to final products that are

carried to final buyers. This supply chain represents a value delivery system. Each company

captures only a certain percentage of the total value generated by the supply chain. When a

company acquires competitors or moves upstream or downstream, its aim is to capture a higher

percentage of supply chain value.

The Indian Dairy Industry has made rapid progress since Independence. A large number

of modern milk plants and product factories have since been established. These organized dairies

have been successfully engaged in the routine commercial production of pasteurized milk and

various Indian dairy products. With modern knowledge of the protection of milk during

transportation, it became possible to locate dairies where land was less expensive and crops

could be grown more economically.

In earlier years, many households owned their own 'family cow' or secured milk from a

neighbor who had one. With the increase in urban population fewer households could afford to

keep a cow for private use & moreover there were other problems also like the high cost of milk

production, problems of sanitation etc. restricted the practice; and gradually the family cow in

the city was eliminated and city cattle were all sent back to the rural areas.

A) Milk Production

India's milk production increased from 21.2 million MT in 1968 to 88.1 million MT in

2003-04. India is the largest producer of Milk in the World {replacing USA)

Per capita availability of milk presently is 231 grams per day, up from 112 grams per day

in 1968-69.

India's 3.8 percent annual growth of milk production surpasses the 2 per cent growth in

population; the net increase in availability is around 2 per cent per year.

B) KEY CHALLENGES BEFORE INDIAN DAIRY INDUSTRY ARE AS

FOLLOWS:

Ensuring Quality

Procurement and efficiencies in supply chain

Product differentiation and value addition

Supply

Supply of milk is affected by the seasonal influences, in summers the milk supplies dip & in

winters it soars. Therefore, dairies generally make use of the surplus milk available with them

during winters for manufacturing milk powder so that they can meet the increased demand

during summers.

Demand

Demand for milk is not very stable either, during festivals its demand increases

exponentially .In 2003,for example, the demand during festivals surpassed even Mother Dairy's

projections & its booth had to encounter a rare problem of being out of stock, a blot indeed on an

otherwise impeccable distribution system of Mother Dairy, Since then, to its credit Mother Dairy

brought efficiency in the system & reevaluated its strategy to encounter this problem & to be fair

to them they have lived to the expectations of its consumers by making milk easily available.

Milk An Almost Complete Food

Milk is not only an excellent source of Calcium. Which is vital for strong bones and

teeth; it also contains many other vital nutrients like:

Carbohydrates: In the form of lactose.

Fat: For energy

It also contains Vitamins needed for good health; Vitamin A, B1, B2, B3, B12, FOLIC

ACID and Vitamin D are all found in significant quantities in milk.

A glass of milk provides 50% of the daily intake of calcium required by teenagers.

EXECUTIVE SUMMARY OF THE PROJECT

Project Title : “A Study of Physical distribution of Godavari

Milk Dairy”.

Company Name : Godavari Khore Namdeoraoji Parjane Patil,

Kopargaon

Functional Area of Project : Marketing

OBJECTIVE

To Study of the all milk process.

To Study existing distribution channel.

To Study of Increase the distribution efficiency & reducing the over all Cost.

To Study of Daily demand & supply of milk.

ACADEMIC SCOPE

To Gain a Practical Knowledge of Supply Chain Management of Organization.

MANAGEMENT TECHNIQUE USED

To Conduct the marketing survey, the data collection technique used was Questionnaire.

This Include both open and closed ended Question.

FINDINGS

Milk Quality of Godavari is not a very good.

Many workers are uneducated.

Loss in Transit is high.

Company's 34 route .Good existing Distribution Network.

OBJECTIVE OF THE PROJECT

The project forms'a very vital aspect during the curriculum of M.B.A. at the end of the

first year students are required to undergo summer training and a project for span of two months.

The present study is physical distribution of GODAVARI MILK DAIRY, Kopargaon.

The main objective of the present study is to analysis the all production Process. &

distribution system of company. Beside the following are the specific objective of the present

study.

1. To study the all process on milk & to increase the effectiveness of milk processing chain.

2. To study the Promotional activity using the promotion of product.

3. To understand the expectation of consumer about the dairy product.

4. To study about the product mix marketing.

5. To study the competitive analysis.

6. To study about the distribution channel of product.

7. To identify the dealers expectation about the distribution network.

8. To study the physical distribution of organization.

9. To study the Checking milk quality.

SCOPE OF THE PROJECT

The project study will help the increase effectiveness of production process. And also

helpful the dairy to counter the general in efficiency in the distribution network. Dairy

management also know about the expectation of customer and dealers. Taking a vital action

about the product mix marketing and promotion.

As manufacturing and distribution costs constitute major role play in the total cost of

final output. It around 60 to 70% cost spend on manufacturing and 40 to 30% cost spend on

distribution. Promote service .efficient delivery, lower transportation cost, decrease the wastage

of milk etc. will provide competitive advantage to dairy.

In brief dealer's and customer market survey will provide sufficient data input to the dairy

to take a necessary steps for increasing demand and reducing the distribution cost & help in

bringing down the manufacturing and distribution cost.

COMPANY

PROFILE

NAME & ADDRESS OF ORGNIZATION

GODAVARI KHORE NAMDEORAOJI PARJANE PATIL TALUKA SAHAKARI DUDH

UTP.SANGH LTD AT POST: SHINGNNAPUR ,TAL: KOPARGAON DIST:

AHMEDNAGAR ,PIN CODE: 423603.

HISTORY:

Godavari khore Namdeoraoji Parjane Patil Taluka Sahakari Dudh Utp.Sangh Ltd. Was

establishing in 1976 with Registration No. NAR/PRD 169 dated 20 Jan 1976 under the Co-

operative leadership of Late Mr. Namdeoraoji Parjane Patil.

Milk procurement was started with collection of 80 litters of milk per day but with his

deep vision he self-initiated the white revolution to increase milk production with the help of

BAIF Urlikanchan. Lot of efforts were made to convince farmers for cross breeding through

Artificial key village centers run by Zilla Parishad in the whole Kopargaon Tahasil. With the

help of Leaders from Kopargaon taluka and help of BAIF,we had introduced Al systems and

started 17 Al centers in 106 villages of Kopargaon and Rahata (old Kopargaon) taluka.

LOCATION:

Godavari Khore Union is centrally located in North Maharashtra at Kopargaon Taluka

just 15 Km away from shirdi the wholly shri.Shirdi sai baba. The near by cities connected to

kopargaon includes i) Aurangabad,Nashik,Ahmednagar at 100 km ii)Dhuiia at 135 Km iii) Pune

at 220 Km and iv)Mumbai at 275 Km.

AIMS AND OBJECTIVES:

The main objective of the Union is to increase an assured income of the farmers by

creating dairying as an primary occupation. We also support to give income to the small farmers,

farmless workers and educated unemployed person through dairy business.

NUMBER OF MILK CENTERS AND MILK PRODUCERS :

More than 20,000 milk producers are linked up with the Union through more than 200

dairy co-operative societies (DCS). At present breedable and milch animals taluka is around

45000. At the beginning milk procurement was 600 Itrs per day and during the year 1988-99

milk procurement has crossed 1.8 laks per day. But due to condition from 1999 to 2005 milk

procurement has drastically come down to 1.25 laks per day which is our present procurement.

THREE TIER SYSTEM:

Union has adopted three tier system for its operations. The producers are members of the

DCS at all the village level supplying their milk to DCS. The Union collects/procures all the

milk collected by these DCS. Further the milk collected is Processed, homogenized and packed

at central dairy plant owned by the Union and marketed in poly packs strictly adhering to

Govt.norms. however the Union is also supplying allotted quota of milk supply to Maharashtra

state federation (Mahananda - 20000 Itrs/day) and Gujarat Co-Op. Milk Mktg Fed. Ltd (Amul -

70000 Itrs/day).

MANAGEMENT:

Functioning of the Union are managed by Board of Directors who are elected from out of

152 DCS. The period of Management Committee is for 5 years. After completion of tern re-

election will be held by Collectorate ie Govt. Officers, daily Functioning of the Union is

looked by Managing Director with the help of dairy Managers, Production managers, Quality

Contra! managers, Procurement officer and other Departmental heads like Maintenance Engineer

,Secretory, Marketing Managers, chief Accountant. Etc

Products of Godavari :-

1.shrikhand

2.Dahi

3.Lassi

4.flavored milk

6.ghee

7.saiprasad pedha

8.paneer

9.aamrakhand

OPERATION OF THE UNION:

The Union is full fledged with all the machinery and equipment's in the dairy with a

handling capacity of 3.0 lakhs Itrs/day. The Union has also expertise team comprising of Dairy.

Technologist and an dairy Engineers besides being in consultation with tetra Pack-India and

some other technical consultant for any technical up gradations. The Union Provides animal

health and Artificial Insemination (Al) services and quality cattle feed besides providing quality

seeds and planting material of high yielding fodder crops varieties under fodder development

services. Provision of technical inputs through the extension and training program for milk

producers and DCS workers has also been provided by our Union.

However due to huge competition with private dairy plants (un reganized dairy plants)

and with an threat of losing the milk constant efforts have been laid down by Union from time to

time to increase the milk procurement (Milk handling) through proper channelizing and

implementing of various schemes for DCS and through out-sourcing of milk thru other Chilling

Centers / Private Dairy plants ensuring that the milk collected thru these centers is free from any

adulterations And laying down constant efforts to increase MBRT of Raw milk by providing in

depth technical guidance to such Producers / DCS Chilling Plants.

EXTENSION SERVICES TO DCS:

A. To help in the from of loan assistance from banks with repayment guarantee from milk

collection and payment thereof.

B. To provide milk tester at subsidized rates.

C. To provide financial assistance for the construction of milk shed.

D. To provide cattle feed at concessional rates.

E. To provide Al services at minimum cost.

F. To provide various kind of animal health services.

G. To arrange training programs and educating milk producers & DCS members for clean milk

production.

Through this intensive team work and Co-Operation of the DCS members,Union Has

succeeded in maintaining a grade Audit "A" from the State Government.

FACILITIES PROVIDED TO MILK PRODUCERS & SOCIETIES:

A. Milk cans to collect milk at P.V.S. Centers.

B. Financial help to buildup shed to milk collection centers.

C. With the help to BAIF.Pune we are having an intensive programme to produce cross

breed cows. The programme also includes necessary veterinary aids and facilities for

artificial insemination.

D. To supply weighing balances, choff-cutters & Electronic fat testing Machine to societies

at subsidized rates.

E. Supply cattle feed to societies at subsidized rates.

GENERAL WORK OPERATION:

A. To collect good quality milk from different regd.primary Co-Op. Societies receiving that

milk ar our Raw Milk Reception dock(RMRD) at our Union site, weigh it accurately &

then chill it before undergoing processing of milk {Chilling,Pasteurising,Homogenization

& Sepration.etc.) At present the total procurement of milk is 20000 Lakh Ltrs per day.

(1.5 Lakh dock collection and 50 thousand from chilling center's)

B. Presently we pack around 90000 thousand Ltrs per day and sell it in Pune, Nashik,

Aurangabad, Mumbai....etc. and balance loose milk is being sold to Amul, Mother Dairy,

Govt. Milk Scheme And Mahananda by road milk tankers.

C. We are also Manufacturing different range of dairy products like Ghee, Shrikhand,

Amrakhand, Paneer, Lassi, Butter Milk, Masala Chease, Sterilised Flavoured Milk,

Khava, and Pedha.

CAPITAL AND INVESTMENT:

Sangh has collected shares of Rs.100 From each society. Both above sugar factories have

kept Rs. One Lakh each as a capital & Govt. Given financial assistance at the time of starting of

the sangh. As on 31/03/2002 the total Share Capital of Sangh is Rs. Three Cr. & other Funds

Rs.4.60 Cr. From this Sangh has inveted fixed asset of Rs. 10 Cr. Which includes Buildings,

Machinery,vechicles,Furniture.etc

SOCIAL WORK:

Sangh arranges various social & cultural activities on our own interest. In addition to that

Medical & Hospitalization Aids, Educational Help, Distribution Of School Uniform &

Stationery And Arrangement of Ganesh festival are some other activities of Sangh.

BOOKS OF ACCOUNTS:

Sangh Maintains Following Books Of Records: Daybook,General Ledger, Journal

Book ,Trading Register, Milk Advance Register, Purchase Register, Sales Register, Milk

Purchase Register, All Accounting Work is computerized & all Dept. are connected by

networking.

AUDIT CLASS:

Still up to 31/03/2002 Our Sangh is classified in Audit "A" Class.

FUTURE PLANS:

Prefrence will be given to Woman's Co-Op. Societies. Sangh is Planning to install a new

Chilling Plant, Powder Plant,& Ice-Cream Plant in near Future. Sangh is also assisting Milk

producers to get Loans from State Bank Of India & ICIC! Bank for purchases Of Cows.

GODAVARI FACT FILE:

Type : Cooperative

Headquarter : Kopargaon, Dist- Ahmednagar

Key People : Chairman___________________

Industry : Dairy Products

Revenue : ____________________________

Employees : 625 Employees

Email Id : [email protected]

Phone no. : (02423)222735/36/37

GODAVARI LOGO AND ITS IMPORTANCE:

GODAVARI

SUCCESS

Godavari Success (3 C’s Model):

CompetitorCustomerCompany

Company

Largest milk Brand

More than 20 dairy brands

Market leader in Milk and butter milk, Ghee, Pedha, etc.

Good Supply chain

Enjoys fine reputation. Though the company has grown so big, it never left its key

players- the milk suppliers.

Quality with affordability.

Customer

Are extremely satisfied

Moved from loose milk to packaged milk and then gradually moved them up the value

chain.

Being exposed to a brand, its natural for a customer to try more products.

Improved socio-eco conditions of the customers, has changed their lifestyle and thus the

scope for product innovation has increased.

Competitor

Godavari has to defend against Mahananda, Amul, Mother Dairy, Rajhans, and other co-

operative Milk brands.

Godavari has a competitive sustainable advantage. This lies in the procurement part. Its

ability to collect 1.10 Lakh liters of milk from farmers and distribute them to 80 thousand

retailers is a tough job.

Intelligent Marketing.

Godavari Sales Turnover

Sales Turnover Rs.

2005-2006 49,78,67,922

2006-2007 56,23,35,367

2007-2008 61,42,80,855

2008-2009 82,55,44,338

2005-2006 2006-2007 2007-2008 2008-20090

10

20

30

40

50

60

70

Godavari 4 P’S Marketing

Product-

Over the years, Godavari has come up with many products. There has been product line

extension as well as product category extension. The picture below is a snapshot of various

product of Godavari.

Product Market Share

Ghee 55%

Shrikhand 52%

Amrakhand 47%

Paneer 59%

Lassi 35%

Butter Milk 66%

Masala Chaas 43%

Khava 64%

Pedha 86%

Marketing

Mix

Product Price Place Promotion

Godavari , being a co-operative union offers variety of services to the members of village

and district level co-operative societies. The main services offered by Godavari are:

Medical Facilities for the Cattle of Farmer:-

Godavari provides medical facilities to cattle of farmer at a concessional rate Medicines,

treatment charge.

Cattle Feeding:-

Godavari provide the "Dan" to the cattle of member farmers.

Godavari

Godavari also provides scholarship to children of member of society. Godavari does all

the above said, to ensure high yield of milk and thus ensure that there is constant supply of the

raw material in sufficient quantity.

PRICE :

Decided by the conducting market surveys to check the validity and feasibility of prices

in the market and accordingly decides the prices of GODAVARI products. Price is inclusive of

several elements like,

Cost of milk

Labour cost.

Processing cost.

Packaging cost.

Advertising cost.

Transportation cost.

Sales promotion costs.

Taxes etc.

Place-

Godavari’s Success today is partly because of its strong supply chain design. Below is the

schematic diagram of GODAVARI’S supply chain.

Farmer

Milk Collection

Centers

Local

Farmer

Testing of Milk In

Dairy

Weight of

Milk

Cooling

Tank

Homogenization Pasteurization

Packaging Cooling

Warehouse

Final Customer Retailers

With products being highly perishable, the supply chain ought to have to maintain correct

temperature, humidity etc. and the chain should move fast. To reach out its consumers more

directly and let them the total brand experience. They have come up in major cities like

Ahmednagar, Nashik, Dhulia, Kopargaon, Mumbai, Shirdi, Pune, Sangamner and Aurangabad,

and many more starting up real soon.

Promotion-

On of the most conservative FMCG entities- Godavari- Spends a mere 1% of its turnover

on promotions.

Medium of Promotion- Wall Painting, Banners, Newspaper, Pamphlet’s Magazines. Etc.

RESEARCH

METHODOLOGY

Research Methodology is a way to systemically solve the research problem. The various

steps adopted by researcher in studying his research problem along with logic behind them. It

consists of feedback, Database, New Techniques to lay foundation off & to furnish the given

information for analysis and findings to accomplish the objective of research.

Research starts with the problems, collects data or facts analyses them critically and

reaches decisions based on the actual evidence.

Research means discovery of facts , development offsets and verification of the facts,

Research is a Systematically, controlled, commercial, and critical investigation of hypothetical

propositions about the presumed relation s among natural phenomenon.

A Careful investigation or inquiry specially through search for new facts in any branch of

knowledge.

The Marketing by primary data, Secondary Data

Research Approaches : Observation, Survey, Group Focus,

Experiments

Research Instrument : Questionnaires, Mechanical Instruments.

Sampling Plan : Sampling Unit, Sample Size, Sampling

Procedure

Contact Method : Personal Interview, Telephone Interviews.

Data Source-

1. Primary Data

2. Secondary Data

Primary Data

Primary data is the information collected during the course of an experimental research. It

can also be obtained through observation or through direct communication, with the person

associated with the selected subject, by performing surveys or descriptive research. Primary data

is that which is collected fresh and for the first time. Primary data also called basic data or

original data

Following are methods were adopted for collecting data

Telephone Interviewing

Prior appointment with dealers saves lot of time and money during the market survey.

Dealer is mentally prepared to face the questions & to give his valuable suggestions. His active

participation during structured interview process provides realistic & authentic data. Before

conducting market survey. Dealers were contacted & prior appointment with them was fix on

telephone.

Questionnaire –

Questionnaire is the most common & versatile method of data collection. Some

advantages associated with the reliability, cost effectiveness, versatile and factual in gathering

data.

Questionnaire design passed through three phase as mentioned below.

Pre-Requisite Of Questionnaire:

Secondary data was insufficient to satisfy the main objective of project study. Due to

unavailability of this data. It was felt to collect data from the dealers themselves.

First Edition Of Questionnaire :

Considering main objective under project study. Questionnaire was designed with the

help of secondary data collected during orientation programed. It was well designed and well

constructed. Marketing framing questionnaire suggestions of concerned marketing executive

were taken. These suggestion were implemented.

Pre-Testing & Penalization of Questionnaire:

Dealers in Nashik District were selected for pretesting of designed questionnaire. Their

responses were recorded, Feedback taken, Queries identified. Necessary commissions and

corrections were made in Questionnaire, Again from plant managers it was ensure that designed

questionnaire was errorless. Required amount of photocopies of the Questionnaire were drawn

and then switched over to fieldwork.

Secondary Data

Secondary data provides starting point for Research and often the advantages of low and

ready availability.

Internal Sources

Dairy catalogues, Product Information Brochures, Leaflet's, Dealer's Contract's

Documents, Marketing Manual, Company's Financial Statement Provides Necessary second

hand information. This information was utilized while framing questionnaire.

REASEARCH INSTRUMRNT

The "Questionnaire" is a main research instrument in collection primary data. It consists

of a set of questions presented to responds for their answer. It was carefully developed, Tested,

and Debugged before they were administered on a large scale.

SAMPLING PLAN

After deciding on the research approach and instrument the sample plan was designed.

This plans called for three decisions.

1. Sampling Unit

Individual dealers were the target population.

2. Sample Size

Hence total 30 dealers, 80 Retailers and 40 customer, were selected to study their

Distribution Network. Hence total sample size 150 was adequate to accomplish the project

objectives considering time, Budget Constrains.

3. Sampling Procedure

Non-Probability sample was chosen as cost and time involved in sampling is less. The

Judgment sampling method was used while selecting sample, as it selected the population

members who were good prospects for accurate data.

Contact Methods

Considering the research objective personal interviews was considered the best

alternative due to advantages associated with it such as response rate, Reliability and accuracy of

information.

LIMITATION

The study limited to Nashik and ahmednagar city only.

The Main limitations are follows:

1) The response given by the user & non user of GODAVARI milk may be biased.

2) The data has been collected from Nahik, so the concern are report have been done \

prepare plan this city only.

3) The study is conducted only for 2 months which is no represented of annual pattern of

survey.

While visiting some respondent the response is not to the expectation, so the data can be

valid.

Some consumer's have prejudice

The response from the respondent is valid from another.

PRODUCTION

PROCESS

FARMERS AND THE MILK CO-OPERATIVE SOCIETY

The Operation Flood programmed helps both farmers as well as the city consumers. The

programmed ensures that the farmers get a fair price for their cow milk and the consumers get

best quality milk at reasonable prices. 1,10,000 Ltrs. Daily collection of milk from farmers & co-

operative society, In order to maintain freshness, this milk is chilled and then transported to

GODAVARI Diary in insulated milk tankers by road.

Checking the Quality of Milk

At the Dairy stringent hygienic standards are maintained. The milk in the tankers is first

checked for quality and freshness and then unloaded into huge insulated stainless steel storage

tanks. These tanks have a capacity of 1000 liters each.(3 tanks). The presence of adulterants

(impurities) like urea, sugar test, salt test, glucose test. All these tests ensure that only good

quality milk is accepted. Once empty, the tankers are thoroughly cleaned and sanitized using acid

and alkali then tank clean by the hard water mean water are heated at 95° c.. The tankers are then

finally rinsed with water.

Processing of Milk

Unprocessed milk may contain small dirt particles invisible to the naked eye. In order to

remove these particles the milk has to be processed.

To process milk at GODAVARI Dairy, the milk is first clarified. This is done in a

clarifier which spins the milk at a very high speed, as a result of which the dirt particles are

thrown out and drained.

Pasteurization

Pasteurization had become standardized for milk in most countries, since heating the milk

destroys any bacteria in it, making the milk safer to drink Pasteurizers can work in a number of

different ways. One of the most common styles is the high temperature, short time (HTST),

which brings food to a very high temperature for a brief period to kill bacteria before rapidly

cooling it.

The milk is then pasteurized to make it safe for human consumption. This process

destroys any disease causing bacteria and also increases the shelf life of the milk. During

pasteurization the milk is heated to 84° degree Celsius for 15 seconds and then rapidly cooled

down to 7°degree celsius. This process, unlike boiling, does not affect the nutritional value of the

milk. Pasteurized milk is safe to drink without boiling as long as it is kept cool at all times.

Fortification with Vitamin A

Toned milk during processing is fortified with Vitamin A. The deficiency of Vitamin A

can lead to night blindness and skin horning.

Homogenization

Homogenized milk was the next step. Pasteurization milk could still easily have milk fat

proteins separate from the rest of the milk, use the homogenization process to reduce overall

milk fat in milk. 2% milk is stripped of some of the fat molecules to produce lower fat milk

At GODAVARI Dairy the milk is also homogenized. This ensures that the customers get

uniform amount of cream in their milk.

In this process the milk is pumped at a very high(2000) pressure turning the cream into

tiny droplets thus distributing the fat through out the milk. These droplets do not float to the

surface to form a creamy layer. That is why no creamy layer appears when GODAVARI Dairy

milk is boiled at home.

GODAVARI Dairy shops sell homogenized toned milk which contains minimum 3% fat

even though you cannot notice it.

Dispatching of Milk

After processing, the milk is chilled and stored in silos and further chilled to about 2 C.

by the glycol chilling system, and then dispatched to the Milk Shops in insulated road milk

tankers. Prior to the milk being dispatched in tankers, it is tested for quality to make sure that it

meets the quality standards. When the tanker arrives at the shop the milk is transferred into a

large refrigerated tank.

Making the milk available

The control room is very vital to the efficient distribution of milk to the 300 shops across

the city. It organizes the tanker routes and its staff is responsible for ensuring that shops do not

run out of milk. 45 tankers Available at Diary. GODAVARI dairy own tankers is 28 and on Rent

is 19. When completing the 60000 to 700000 Km of each tankers after that sale the tankers.

Distribution Department learns that a particular shop is running out of milk(on Telephone), he

contacts the tanker nearest to the shop on the mobile which then delivers the extra milk to it.

Quality Control all the way

A final quality check of the mill is also made at the shop itself. This ensures that milk

reaching the customers is of same quality as dispatched from the Dairy.

Consumer Information

To raise the consumers awareness regarding Adulteration of milk, GODAVARI Dairy

has thrown open its testing facilities. In its laboratories consumers can see for themselves how

impurities and adulterants are easily detected. GODAVAR! Dairy also has two "mobile labs"

that can test milk in the residential colonies. All this is part of a commitment to provide the

consumers with the purest milk nature has to offer.

Keeping Milk Cool

GODAVARI Dairy takes care to keep milk cool at every stage-it is chilled before

transporting in insulated tankers, it is stored in insulated silos and kept in refrigerated tanks at the

shops.

Keeping milk cool slows down the rate at which bacteria multiply. This also increases its

shelf life.

Effluent treatment plant:

The water used for cleaning equipment and tankers is treated at the effluent treatment

plant in the Dairy before being discharged into the sewage system.

BACKGROUND OF DISTRIBUTION

CHANNAEL OF DISTRIBUTION

According to William Standton " Channel of Distribution for a product is the rout taken

by the title of good as they come from the producer to the ultimate consumer"

From the above definition it is clear that channel of distribution act as an intermediary to

help in taking the product to ultimate customer.

Channel of Distribution for the marketing of Milk & Milk Products are as below.

Producer

Dealers

Retailers

Final Consumer

CHANNAEL OF DISTRIBUTION OF MILK AND MILK PRODUCTS

Marketing channels are sets of inter dependent organization involved in the processing of

making a product or a services available for use or consumption. Companies which

manufacturing product services distributes their product generally through a network of

wholesalers/dealers and retailing contrivances, which sell their product directly to consumer are

said to be involved in direct marketing with a 2000 level channel.

Match Demand and Supply

The major function of intermediaries is to assemble the goods from producer in such a

manner the customer could effect purchases with case. E.g. Food Corporation of India Purchases

food grains the farming just after harvest season is over and stores it in godown. It monitors the

smooth flow of food grains so these customers can get them term fair price shops, at a reasonable

price throughout the year.

Promotion

Companies run special schemes for wholesaler/retailers along with the point of purchases

displays at retail shops or advertisement to attract more customers.

Physical Distribution

The process of delivering the product to the customer is termed as distribution.

Distribution management is an important part of marketing management and it consists of two

major tasks physical distribution and management of distribution channels.

Physical distribution can defined in different ways a simple definition which conveys the

essence of the task, is stoked below.

"Physical distribution is to deliver the right goods to the right customer at the right time

and right place"

"Physical distribution is the process of reaching the product to the consumers. It

encompasses all the aquatinters involved in the physical flow of product from producer to

consumer".

Important of Physical distribution

Physical Distribution provides place and time utility to products in other words it is

physical distribution that makes the product available at the right place and at right time , there

by maxi-missing the companies changes to sell the product and strengthen its competitive

position.

Rising Competitive demand

Through physical Distribution management got the benefits of lower cost & higher levels

of customer services and thereby could reduce their operating expenses.

Components of Physical Distribution

There are Five components of physical distribution system are as below.

Order Processing

Order processing includes receiving, recording, filling, and assembling of product for

dispatch. Detailed records of orders must be kept to avoid further problems.

Inventory Management

It is a powerful tool in the process of creation of satisfaction of customer demand.

Inventory is an investment & hence control over inventory is very important.

Warehousing System

Warehouse performs functions like dispatch of material to retailers, holding the stokes for

retailers, storekeepers, Etc. In marketing warehouses regulate market supplies according to

changing market demand.

Packaging & Material Handling System

Packaging is a very important to avoid damages, losses and to attract to customer. The

mechanized handling services & protective packages have improved the level of customer

services & lowered the physical distribution cost.

Transport System

Transportation is the crux of the problem of physical distribution. Simple and smoother

transport facilities are minimizes the crux problem.

Inventory Management

There are Three types of inventories with which logistics is concerned.

a. Raw Milk input - In the production Process.

b. Work-in -Progress - Milk under going processing or in a semi-process

State a waiting further processing

c. Process Milk - Pasteurized and Homogenized milk ready for distribution ,

according to the requirement of the final customer i.e. Toned Milk,

double Toned Milk.

a) Raw Milk:

Requirement is planed on day to day basis. Information about this plan is given with the

tempos which daily goes for milk collection & secondary as milk is a perishable product it can

be stored for more than 48 hrs. hence it's requirement is determined and day to day basis.

b) Semi-Process Milk:

Which waiting for further processing depends upon distribution route, Destination and

distribution schedule of vehicles. Tank which stored chilled milk. Chilled milk Stores capacity of

tanks is around 1000 litters. This is semi processed milk. This milk avoids extend perishability

period of milk by 4 to 5 hrs.

c) Process Milk:

Pasteurized and Homogenized milk stored in another yanks which is having capacity of

1000 litters. Each there are four such milk tanks. From these tanks, milk is sent according to

packing orders. As on average 2000 to 3000 litters of milk remaining in process. And in dairy

transportation there is an average inventory of around 10000 litters.

DEALERS AND RETAILERS MANAGEMENT

Dealers are appointed on the basis of their reputation & their past records. Their

geographic penetration, customers relation, their existing facilities (cold storage, their own

distribution Network) Plays an important role. Dealers margin is decided on the basis of market

situation. Dairy owner reserve the right to promote, manage or discontinue the dealers operation.

Dairy owner and dealers enter into contractual agreement with each other and they deal with

each others according to the terms and conditions mentioned in the contract.

Role of Dealer's

1. Assembling of goods.

2. Distribution of Goods.

3. Transportation.

4. Financing.

5. Risk Bearing.

6. Market Information.

7. Advertising and Publicity.

Retailers Management

Retailers are concerned with the sale of goods and services to the customers for their use.

They buys goods in small quantity from dealers and sales the same to customers. Retailers are

last connecting link between the manufacture and customers.

TEST OF

COMPETITION

The Competitors

Amul Dairy

Gowardhan Dairy

Thorat Dairy

Rajhans Dairy

Jivan dhara

Shriram Dairy

Mother Dairy

The Various competitors of GODAVARI Product- Wise is given as under.

Godavari Product Competitors

Ghee Gowardhan, Mother, Amul, Thorat

Amrakhand Mother, Amul, Thorat

Paneer Mother, Amul, Gowardhan

Lassi Thorat

Butter Milk Gowardhan, Mother, Amul, Thorat

Masala Chaas Gowardhan, Rajhans, Thorat

Khava

Pedha Thorat

FINANCE

MATTERS

GODAWARI KHORE NAMDEVRAOJI PARJANE PATIL TALUKA SAHAKARI DOODH UTTAPDAK SANGHA LTD. KOPARGAON

MILK SALE :-

31/3/2010endingRupee

Perticular 31/3/2011 endingRupee

5,90,1,111.0036,45,38,067.0028,92,20,350.4516,09,88,993.171,54,84,875.0260,68,086.00

Cow milk sale – MahanandaCow milk sale – outerCow milk sale – properTond milk sale

Cow milk sale tranferable

3,09,59,227.0028,43,12,846.0037,33,64,477.1319,62,48,510.521,99,59,638.0449,11,460

89,53,01,482.64 Total 90,97,56,158.69

MILK FOOD SALES :-

31/3/2010 ending Perticular 31/3/2011 ending1,37,69,244.401,15,928.0033,22,912.00,1,33,31,533.0032,95,397.001,96,520.009,59,457.5038,17,534.6018,54,711.7538,22,641.2050,27,852.0072,856.00

Ghee saleKhawa Masala milk Pedha, barfiShrikhandChakka CreamLassiDahiButter milkPaneerberry

1,08,85,580.009,78,205.8031,40,593.801,54,66,761.9860,82,524.951,40,221.002090.0039,36,882.7543,47,045.0031,36,629.9074,40,216.9083,191.00

4,95,86,587 total 5,56,39,943.08

R.P. Rohom & co. S.B.Gunjal C.A.Gadhave D.K. Gudaghe R.N.Parjane

C.A. Accountant M.D. V.C. CHAIRMAN

GODAWARI KHORE NAMDEVRAOJI PARJANE PATIL TALUKA SAHAKARI DOODH UTTAPDAK SANGHA LTD. KOPARGAON

Milk product production cost :-

31/3/2010 ending Perticulars 31/3/2011ending1,28,50,826.001,15,021758.2025,25,845.0031,01,141.0028,40,509.0029,48,371.0015,94,169.8094,683.6046,41,676.100.00

Ghee production costPedha, barfiMasala milkShrikhand ButtermilkLassi DahiKhawaPaneerchakka

93,35,747.001,19,70,956.6025,99,122.0053,80,401.2019,66,620.5032,51,480.0033,95,082.007,47,371.2072,40,029.305,65,441.20

4,20,99,979.70 Total 4,64,52,251.00

MILK TRANSPOTATION EXPENCES :-

31/3/2010 ending Perticulars 31/3/2011 ending34,19,648.001,25,47,888.004,01,29,575.001,42,879.0030,70,500.003,13,976.009,94,521.00

Repair & Maintenance Petrol Diesel exp.Rent Paid Vehicle exp.Salary & WagesVehicle InsuranceTraveling exp.

40,98,167.001,64,23,662.003.32,38,015.002,41,383.0055,48,948.004,89,165.0017,31,386.00

6,06,18,987.00 Total- 6,17,70,726.00

R.P. Rohom & co. S.B.Gunjal C.A.Gadhave D.K. Gudaghe R.N.Parjane

C.A. Accountant M.D. V.C. CHAIRMAN

CAPITAL STRUCURE:

GODAVARI is co - operative organization therefore is nothing like market value of share

whenever GODAVARI needs funds it issue adequate number of share, but only to its

shareholders or members of societies and not to the others. The capital structure of a firm would

generally denote the ratio of own capita! do the borrowed capital. The capital structure thus,

indicates how the capital has been raised. The capital structure of the GODAVARI Dairy figure

is given below.

Capital Structure 2008-2009 2009-2010

Authorized Sh. Capital

3,50,000 Sh. @ Rs. 100

35,00,00,000 35,00,00,000

Subscribe Capital

Reserve Fund 81,43,879 73,28,489

Net Profit 29,45,233 36,02,821

WORKING CAPITAL

In GODAVARI there is no credit with the federation, wholesale dealers.

Requirement of working capital in winter season is much higher and availability of fund

is lesser. To meet with this working capital requirement, GODAVARI has got certain

provision and short - term investments. From the monthly sale, to GODAVARI from

which it covers up its short - term expenses.

SOURCES OF CAPITAL

Inflow:- Source of capital of GODAVARI are:

Federation gives them dairy amount decided by union.

Fix deposit of society is major source of finance.

Interest of fix deposit of bank like SBI, Pravara Bank. ICICI etc. is one of the sources of

finance.

Share Capital of GODAVARI. Share of GODAVARI is not for public but only for the

society members.

Net profit of GODAVARI during the year 2009- 2010 is 36.02 lack.

Bankers:-

State Bank of India.

N.D.C.C. Bank.

Bank Of Maharashtra

Bank Of Baroda

DATA ANALYSIS &

INTERPRETATION

Background

The data after collection to be processed and analyzed in according with the outline laid

down for the purpose at the time of developing the research plan. This is essential for a scientific

study and for ensuring that we have all relevant data for making contemplated comparisons and

analysis. Technically speaking, processing implies edition .coding classification and tabulation

of collected data so that they are amenable to analysis.

Data Analysis

The term analysis refers to the computation of certain measures along with searching for

patterns of relationship that exists among data group simply analysis can be defined as the

ordering or breaking of the data into constituent parts in order to obtain answer or research

questions.

Interpretation

After collection and analyzing the data. The researcher has to accomplish the task

drawing inferences followed by report writing. This has to be done very carefully; otherwise

misleading conclusion may be drawn.

Meaning Interpretation

Interpretation refers to the of drawing inferences from the collected facts after an

analytical or experimental study. In fact, it is search for broader meaning of research findings.

Interpretation is essential for the simple reason that the usefulness and utility of research lie in

proper interpretation.

Dealers

Location of Dealers

Attributes No. of Respondents Percentage of Response

Rural 6 20%

Semi-Urban 15 50%

Urban 9 30%

Total 30 100%

No. of Respondents

RuralSemi-UrbanUrban

Interpretation-

Majority of the dealers are located in Semi-Urban (50%) Area.

Most Sales of Milk


Toned 12 40%

Double-Toned 08 27%

Standard 0 0%

Skimmed 06 20%

Full Cream 04 13%

Total 30 100%

Toned Double-Toned Standard Skimmed Full Cream 0

2

4

6

8

10

12

14

Percentage of ResponseNo. of Respondents

Interpretation-

Toned milk have maximum i.e. 40% sale in the market as compare to other types of milk.

Full cream milk have low sales in the market.

Daily Requirement of Milk


10-100 Ltr 0 0%

100-300 Ltr 2 7%

300-800 Ltr 4 13%

800-1000 Ltr 9 30%

1000-2000 Ltr 13 43%

Above 5000 Ltr 2 7%

Total 30 100%

10-100 Ltr

100-300 Ltr

300-800 Ltr

800-1000 Ltr

1000-2000 Ltr

Above 5000 Ltr

0

2

4

6

8

10

12

14


Interpretation-

In Nashik Market Majority of the Dealers Daily requirement of Milk is 1000-2000 Ltrs.

(43%).

Placement of Order by the dealers for Daily Milk Requirement


On Telephone 10 33%

Through Distribution Network 16 54%

Judgment/ Experience 04 13%

Total 30 100%

On Telephone Through Distribution Network Judgment/ Experience

Interpretation-

Majority of dealers booked their milk requirement. Through distribution network (53%)

followed by orders on Telephone.

Size of Milk Packages Sales a Faster-


200 ml 10 33%

250 ml 16 54%

500 ml 04 13%

Total 30 100%

200 ml 250 ml 500 ml 0

2

4

6

8

10

12

14

16

18


Interpretation-

Nashik market has been captured by 250 ml. with 60% of sales of milk is of Godavari

Milk.

500 ml milk packages having only 27% sales in Nashik Market.

Other Milk packages contribute about 13% of sales of milk.

Most Important Factor Affecting on Production Sales


Price 10 33%

Taste 08 27%

Quality 09 30%

Ease of Availability 03 10%

Advt./ Promotion 00 00%

Total 30 100%

PriceTasteQualityEase of AvailabilityAdvt./ Promotion

Interpretation-

Quality of Milk is first thing for which customers go for a particular milk.

Price Sensitivity customers are much more in Market. Hence price is Another factor for

which customer look.

Taste are the other factors which are consider by customer while buying milk.

Season Wise Milk Requirement


Summer 09 30%

Winter 16 53%

Rainy 05 17%

Total 30 100%

Summer Winter Rainy 0

2

4

6

8

10

12

14

16

18


Interpretation-

Milk Requirement is Peak during Winter Season (53%) as compared to summer and

Rainy Season as per dealers opinion.

Loss in Transit During Distribution-


Dairy Owner 0 00%

Dealers 03 10%

As Agreed Between

Dealers & Dairy Owner

27 90%

Total 30 100%

Dairy Owner DealersAs Agreed Between Dealers & Dairy Owner

Interpretation-

Almost all the dealers said that Loss in Transit is bared by the parties as agreed between

dealer’s and Owner (90%).

Dealers Facing the Problem Regarding the Distribution.


Time 16 54%

Packages 04 13%

Services 10 34%

Total 30 100%

Time PackagesServices

Interpretation-

Majority of (54%) Dealers Preferred and Expect Timely delivery of milk from the dairy

owner. And 33% dealers expected services provided by Dairy owner.

Dealers Opinion about the Godavari Distribution Network.


Excellent 04 13%

Very Good 14 47%

Good 10 33%

Fair 02 07%

Poor 00 00%

Total 30 100%

Excellent Very Good

Good Fair Poor0

2

4

6

8

10

12

14

16


Interpretation-

More 47% dealers are said that Godavari Distribution Network is very Good and 33%

Dealers Said that Godavari Distribution Network is Good.

FINDINGS OF

RESEARCH

1. 50 % of the dealers are Located In Semi-Urban area. Where road condition is good.

2. Godavari Dairy mostly sales of milk is 40 % Toned & 27 % Double Toned.

3. Godavari dairy 43 % dealers daily requirement of milk is 1000-2000 Litters.

4. Majority of dealers place orders on telephone followed by order placed through

distribution network.

5. Timely delivery followed by reliability is the major criteria considered by the dealers

while selecting milk dairy.

6. 93 % Dealers said that Distribution Channel plays a important ro!e in sales of Godavari

milk.

7. Dealers Survey indicated that dealers margin, Quality, Price, Taste are the major factor

considered while placing the milk order.

8. Godavari Milk dairy 60 % sales of the 250 ml packing is more faster than the other

packing.

9. 90 % Dealers responded that Loss during the transit it's beard by them as agreed

between dairy owner and dealers at the time of signing contract.

10. Godavari milk dairy sales is depend on seasonal Dealers survey 53 % dealers said that

in winter milk sales is high.

Questionnaire

Questionnaire

Name of the Dealer :-

Address :-

1. Which product of Godavari has demand high than other product?

a) Godavari milk b) Godavari Pure gheec) Flavored milk d) Lassie) Shrikhand

2) which brand of milk and milk product you have sale other than Godavari?

a) Rajhans

b) Thorat

c)Amul

d) other note

e) Only Godavari

3) How many product of Godavari you have sale?

a) Godavari milk only

b) Godavari milk product

c) milk and all milk product

4) How was the response of Godavari milk and milk product?

a) poor sales

b) better sales

c) growing Sales

5) Consumer are Satisfied by buying the milk of Godavari?

a) Yes

b) No

c) buying other product next time

6) what percentage of margins added in the original mfg Cost?

a) 10%

b) 20%

c)30%

d) 5 %

e) 10%

7) what do you use the expiry product or outdated product?

a) Return to the Company

b) Destory the product

8) Are you Satisfying the Service of Godavari Dairy?

a) Yes

b) No

9)Case of new product by whom the promotion is made?

a) Company

b)yourself

c) Jointly

10) If the promotion is made by yourself which type of media you use for launching the product?

a)boards

b) free Sample

c) Hoardings

d)advt in newspaper

SUGGESTIONS

Suggestions

1. Majority of distribution vehicles remains unutilized to there full capacity. Hence

appropriate capacity distribution vehicle will give distribution efficiency along with

overall reduction in the cost.

2. The company can improve the sales by giving more and more advt. on Newspaper, T.V.

etc.

3. Lead time required to load the vehicle can be sufficiently reduced overall expenses.

4. If the company can achieve its target in this area by keeping low margin and by reducing

the price then the sales in this area can improve drastically because in this area the

income level of households is not very high.

5. Godavari Dairy should also lunch certain schemes for household. It has schemes for

retailers but not for households. This section being the major user of milk and in order to

enter into new area such starting schemes can be very helpful.

6. The company should get a proper FEEDBACK from retailers time to time. Incase they

are facing any problem it can be solved timely, without delays.

7. There is a problem of DATE also being faced by retailers. The date printed is one day

previous. If retailers get the same day’s milk in the evening.

Bibliography

Market Management- Philips Kotler

Works of Students who did summer training at GCMMF

www.cow.com

http://www.cow.com/