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Chapter 1
Industrial Overview and Profile
Introduction to H.D.D.C.F.
Haryana is well known for its highly productive milk cattle particularly for the murrah buffalos
and haryana cows. The economy of the state is predominated based on the agriculture which
comprises small holdings. More than 75% of the cultivators having land holding of less than 5
acres. As a subsidiary occupation they rear and breed cattle. The milk production was estimated
to around 115 lt. lakh per day last year. The essence of various programs launched in the state
had been to add the Anand Pattern of milk co-operative to Haryana.
Anand Pattern
In this pattern all the function of dairying milk procurement, the milk producers themselves
control processing and marketing the supply of inputs relating to milk production and animal,
husbandry are also provided at the door steps of producers.Dairying co-operative on and Anand
Pattern in Haryana is a three tier co-operative structure consisting of primary milk producers’ co-
operative societies at village level, milk producers’ co-operatives union at district level and the
state, dairy federation.
Primary Milk Producers’ Co-operative Societies
There is organized one society for one village provided at least 40 milk producers willing to sell
at least 50 kg of milk per day. The objective of such a society is to promote the economics of its
members by improving the quality and increasing quality of milk production. A milk producer of
the age 18 or more and the resident of that village willing to pay admission of fee Rs.1 and
purchase a share of Rs. 101 are eligible for the membership of a primary milk society. Such a
member can only exercise his voting right if he is not defaulter to the society and has supplied at
least 200 liters of milk during the previous year. This society procures milk from its members
and supplies the same to the milk union.
1
District Milk Producers’ Co-operative Union
A district co-operative milk producer union is in the middle level tier in the three tier dairy co-
operative structure. These unions organize new primary societies. A society must hold one share
of Rs. 100 of the union. Each member of the society had one vote irrespective of the no. of
shares. The primary societies purchase milk from producers and supply to milk unions. The
union either processes the milk or pass on to milk plant of the federation for further processing.
These unions carry out important function related to procurement, processing and marketing of
milk & milk products, supply of technical input to organization, organization of new primary
milk societies and supervision over the existing societies.
Dairy Federation
THE HARYANA DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION ( HDDCF ) is
the state level apex body established to promote the economic interest of milk producers of
Haryana state particularly those belonging to weaker section of village community by purchase
of milk and processing of milk products and marketing there of by itself or through milk
unions.The membership of federation is open to all milk unions. Each member has to pay an
admission fee of Rs. 100/- at the time of admission and has to purchase at least on share of Rs.
100/-.
Operation Flood
A recent World Bank audit show that of the Rs 200 crores is invested in Operation Flood II. The
net return into the rural economy has been a whopping Rs. 24,000 crores per year over a period
of ten years, or a total of Rs.240,000crores in all. No other major development program has
matched this input-output ratio.Operation Flood, launched in 1970, has been instrumental in
helping the farmer mould their own development. Thus helping reach milk to consumers in 700
towns and cities through a National Milk Grid. It also helped eradicate the need for middlemen
thereby reducing the seasonal price variations. As a result of the co-operative structure the whole
exercise of production and distribution of milk and milk products has become economically
viable for farmer to undertake on their own.
2
1.1Three Phases of development
The scheme sought to established milk producers’ co-operatives in the villages and make modern
technology available to them. The broad objectives are to increase milk production (“a flood of
milk”), augment rural incomes and transfer to milk producers the profits of milk marketing
which are hitherto enjoyed by well to do middlemen.
Phase I
Of Operation Flood was financed by the sale with in India of skimmed milk powder and butter oil gifted
by the EC countries via the World Food Program. As founder chairman of the National Dairy
Development Board (NDDB) of India, Dr. Kurien finalized the plans and negotiated the detail of EEC
assistance. He looked after the administration of the scheme as founder chairman of the erstwhile Indian
Dairy Corporation, the project authority for Operation Flood. During its first phase, the project aimed at
linking India’s 18 best milk sheds with the milk markets of the four metropolitan cities of Delhi, Mumbai,
Calcutta and Madras.
Phase II
Of the project, implemented during 1981-85 raised this to some 136 milk sheds linked to over 290 urban
markets. The seed capital rose from the sale of WFP/EEC gift products and World Bank loan had created
by end 1985, a self-sustaining system of 43,000 village co-operatives covering 4.25 million milk
producers. Milk powder production went up from 22,000 tones in the pre project year to1,40,000 tones in
1989, thanks to dairies set up under Operation flood. The EEC gifts thus helped to promote self-reliance.
Direct marketing of milk by producers’ co-operatives resulting in the transfer of profit from milk
contracts increased by several million liters per day.
Phase III
Of Operation Flood (1985-1996) enabled dairy co-operatives to rapidly build up the basic infrastructure
required to produce and market more and more milk daily. Facilities were created by the co-operatives to
provide better veterinary first-aid health care services to their producer members.
3
1.2 The Indian Consumer
India’s growing middle class will drive change in food consumption. Dairy products are
highly income elastic.
The Indian consumer is moving from subsistence to basic food categories.
Gradual shift from only cereal consumption to include Dairy and other protein products.
The share of HH food expenditure on dairy increasing:-
- Currently 18% in Urban India (increased from 13% in 1989-99)
- Currently 15% in Rural India (increased from 10% in 1989-99)
4
1.3 Dairy In India
PRE- INDEPENDENT DEVELOPMENT
It is said that in India people started rearing cattle for obtaining milk to be consumed as food around 2000
B.C. They priced the cow milk more than its meat.
A preliminary study concerning the composition of milk by indigenous cows and buffaloes was
conducted during 1914 on the advice of board of agriculture and attempts were made to establishing
pedigree herds of India breeds.
An empirical council of agriculture research at present INDIAN COUNCIL OF AGRICULTURE
RESSEARCH (I.C.A.R.) was establish during 1929.
The first milk union known as “LUCKNOW MILK PRODUCERS CO-OPERATIVES UNION
LIMITED” was established during 1937 and another co-operatives venture was established in KAIRA
district at ANAND during 1946.
POST-INDEPENDENT DEVELOPMENT
Separate Dairy Development Board was set up in 1965. Dairy acquire national reorganization.
Concept of planned approach and intensive cattle development was introduced at all levels.
Program under operation flood were launched. These programs open a way for the Dairy
Industry to come up as producers’ oriented industry.
KEY SUCCESS FACTORS
Branding.
Deep insight into the Indian consumer.
Innovative product offering.
Competitive and penetrative pricing especially for mass communication categories.
Distribution – Efficient nationwide dry and wet cold chain. High quality raw milk.
5
Chapter-2
COMPANY PROFILE
From ancient times, Haryana is known as home of milk as a famous saying tells us
"Deshonmeindesh Haryana jitdoothdahikakhana" cattle of Haryana are world famous for their
high yielding capacity for instance Haryana cows and murrah buffaloes are among the best
yielder of milk in the country.
MISSION
We at VITA our endeavor to satisfy the taste and nutritional requirement of the customer of India
through excellence in market by our committed team throughCo-operative networking. We are
committed to offering quality products that provide best value for money.
KEY THRUST
Expand production of existing product.
Identify and marketing of new product.
Building capacity of marketing of fresh product.
Attract and retain quality manpower.
Integration of Co-operatives with common branding.
VALUES
Co-operative
Customer Orientation
Integrity
6
Committed to producers
Excellence
Leadership
Quality
Innovation
Growth Orientation
Belongingness
Pride of Organization
Employee Satisfaction
QUALITY & FOOD SAFETY OBJECTIVES
Together we shall
WIN CUSTOMERS CONFIDENCE.
OPERTE QUALITY & FOOD SAFETY SYSTEM.
REDUCE WASTAGE AND POLLUTION.
KEEP ON IMPROVING
In order to achieve the following quality objectives are designed.
7
SR.N. QUALITY OBJECTIVES RESPONSIBLE
FUNCTION
RESPONSIBLE
OFFICER
1. Delight our customers by providing
safe and high quality milk and
milk products.
QUQLITY
CONTROL
INCHARGE
QULITY CONTROL
2. To reduce use of water and energy
by 2% during the year. ENGINEERING INCHARGE
ENGINEERING
3. To achieve growth rate on minimum
5% sales during the year. SALE INCHARGE SALE
4. To reduce handling losses by 2%
from the previous year. PRODUCTION INCHARGE
PRODUCTION
5. Judicious and efficient utilization of
resources by employees’ motivation
and satisfaction.
PERSONNEL INCHARGE
PERSONNEL
8
2.1Objectives of the company
The objective of the union shall be to carry our activities conductive to the economic
development of milk producers by production, procurement, processing and marketing of
commodities.
To achieve the objectivity the organization is carrying out activities under three
segments:-
Field Activities.
Processing Activities.
Marketing Activities.
Field Activate
To facilitate farmers (Milk Producers) in organizing.
Dairy Cooperation Societies for their Socio-economic uplift.
To purchase milk from Dairy Cooperation Societies on remunerative price.
To arrange transportation of milk from collection points of Dairy Cooperation societies to
Dairy Plant or Chilling Centers.
To arrange and provide milk cans testing equipments, testing chemicals, technological
items and stationary etc. required as per requirement of DCSs.
To arrange and make available inputs like cattle feed, mineral mixture, good quality
fodder sees, milk producers & items related to health care of mulch animal.
To arrange training of required know-how for farmers & functionaries of C.S.
To guide supervise & control the working of Dairy Cooperation Societies.
9
Processing Activities
This Milk Union has one Dairy Plant at Sirsa leased by Haryana Dairy Federation and its main
products are Ghee, Powder, Paneer and liquid Milk, Dahi, Lassi under the brand name.
Marketing Activities
The marketing policy is devised and modified under the guidance of Haryana Dairy Federation
and in return royalty is to pay it Federation as per mutual agreement. Quality management policy
has been adopted and stands certified under ISO 9001-2000 & HACCP-15000 to ensure quality
and to get recognition in marketing circles.
Product Range
Toned milk
Double Toned milk
Full cream milk
Table butter
Ghee
Skimmed milk powder
Paneer
JalJeera
Mango Drink
Milk Cake
MithiLassi
NamkeenLassi
Capacity of milk plant: 1.5 Lakhs liter/ per day milk turned into powder : 1 lakhs / per
dayPasteurized milk as such Placed in market: 50,000 liter/ per day.
Milk Reception
10
Milk plant, Sirsa is handled by Sirsa Co-operative milk Producer's Union Limited, Sirsa. Milk is
collected from the villages through docks are used for entry of Milk from trucks. A sample is
taken from each container from testing and sample giving positive test rejected and left of the
milk is put into tub from which through pipes milk goes for the further processing payment is
made to milk producer by weighing & measuring fat percentage. After reception two types of
tests are done to judge the quality of milk.
Platform test/ organoleptic tests
Laboratory tests
Composition of Milk
Contents Percentage
Fat 3.75
Water 87.34
Albumin –0.40
Casein 3.00
Lactose 4.70
Ash 0.75
Other 0.06
2.2Sales Offices
11
HARYANA is one of the most progressive states of Republic of India. In the domain of
dairy development it is well known for its productive milk cattle particularly the 'Murrah'
Buffaloes and Haryana Cows. The economy of the state is predominantly based on agriculture.
People rear and breed cattle as a subsidiary occupation. Milk production in the State was
estimated around 128.18 lac litres per day during 1999-2000.
12
There are five milk plants operating in the Cooperative Sector in Haryana. These are located at
Ambala, Jind, Rohtak, Sirsa and Ballabgarh having a handling capacity of 4,70,000 litres per
day.
Chilling Center
2.3District Milk Producers
13
The Primary Milk Societies (PMS) functioning at the village level join to form a Milk Union for
carrying out such activities which are conducive and essential for the socio-economic
development of milk producers, by procuring and processing of milk and marketing of milk
products. The Board of Directors comprising 9 members elected out of the Chairmen of affiliated
Primary Milk Societies run the day-to-day administration through Chief Executive Officer.
These Unions either process milk at their own level or pass the same to the milk plants of other
milk unions for processing. They also organize new Primary Milk Societies at the village level.
A brief matrix of the Milk Unions is as follows:
Sr. No. Name of the Union Date of Registration
1. Ambala 10.03.1973
2. Rohtak 12.07.1991
3. Jind 10.07.1991
4. Kurukshetra 05.07.1991
5. Sirsa 10.01.1978
The essence of various programmes launched in the State has been to adopt the Anand pattern of
Milk Co-operatives. Under this system, all the functions of dairying like milk procurement,
processing and marketing are controlled by the Milk Producers themselves. It has three tier
system comprising milk Producers Societies at the village level, Milk Producers Co-operative
Union at the district level and the state Milk Federation as an apex body at the State level.
The Haryana Dairy Development Co-operative Federation Ltd. registered under Haryana
Co-operative Societies Act came into existence on April 1, 1977. Its authorized share capital is
14
Rs.2000 lacs. It was established with the primary aim to promote economic interests of the milk
producers of Haryana particularly those belonging to weaker sections of the village community
by procuring and processing milk into milk products and marketing thereof by itself or through
its unions. In furtherance of the above objects, the Federation undertakes a number of activities
such as establishment of milk plants, marketing of VITA BRAND milk products of the Milk
Unions. Its turnover during 2006-07 was to the tune of Rs.355.00 crores. It also extends technical
guidance to the Unions in all spheres of personnel, technical, marketing and financial
management as well as makes them quality conscious, through use of modern methods of
laboratory testing of various products.
Quality - VITA the Hallmark of Quality
As part of stringent quality measures, milk required for processing VITA products is
procured from Dairy Cooperative Societies only. It is ensured that the milk is transported
to chilling centres and plants in clean and sterilized milk cans as quickly as possible. Al
quality measures as per Standard of Bureau of Indian Standards/Agmark are being
applied before the products are marketed. Well-equipped laboratories are functioning in
the chilling centres and milk plants to maintain ideal quality standards. VITA is the
endorsement of quality, a commendation we are Proud of.
Milk Plant (Located in Sirsa district at Begu Road, covering 15 acre area) was installed in
1983 as a chilling center by Haryana Dairy Development Co-operation later it came out
as a composite milk plant in the year 1996 with handling capacity of 1 lakh liters per day.
Haryana Dairy Corporation is converted into federation in 1979 under operation flood-I.
In November 1982, the responsibility of milk procurement through societies and tip was
handled over to milk unions under operation flood-2. Before November 19, 1982 milk
was collected directly from collection centres and system was not full proof.
In 1991 ten milk unions were converted into 5 milk unions by amalgamation to increase
the area of operation behind each milk plant for capacity feeding.
15
In April 1992, Milk plants were leased out to milk unions to remove the confrontation
between milk unions and plants to remove the confrontation between milk unions and
plants to make the system similar to NDDB, Anand Pattern which has been applicable in
whole India in dairying field. This has been applicable in whole. India in dairying field.
This step stopped commission system applicable to unions Automotive of milk purchase
price was also given which was withdrawn later on the Nov. 1992.
Board of Directors
Designation Name Phone
Chairperson SmtChandravati 0172-2585507
Managing Director ShDevender Singh 0172-2586826,2585159
Chief Administrative
Officer ShPradeepKasni 0172-2583050
Organizational Structure
The head office of HDDFC limited is situated at Chandigarh, which looks after the functioning
of all the five milk plants and chilling centres. At the top level there is board of directions to
manage the activities of federation. The board is headed by chairman. Chairman of Co-operative
unions of different districts and register, co-operative societies is member of the board of
directors. The Chairman's post is held by person nominated by Haryana govt. managing director
is head of the institution in the top executive position.
16
The business of plant is managed by General Manager subject to control and supervision of
Managing Director, HDDFC Ltd. General Manager of all five milk plants come directly under
the control of Managing Director. General Manager takes care of all the milk functional
departments at the plant except the milk procurement department, which is directly controlled by
head office through district milk unions.
Products and packaging
Milk plant is producing Paneer, Ghee, skimmed milk powder(SMP) whole milk powder (WMP).
Ghee is packed in 1 KG, 2 KG, 5 KG and 15 Kg packs. All are meant for domestic use. SMP is
packed 1 to ½ and 1 KG for domestic used and in 25 kg bag far bakeries etc. WMP is packed in
½ kg tins for domestic use and into bags for military. Paneer packed in polythene bag (250) label
on paneer polythene is safal.
Distribution of Goods or products
There are twelve registered distributors at least one in each district of its operational region
registered under head office. The goods for domestic use are supplied to dealers, relatives and to
ultimate consumers through registered distributors. Besides these their sales office of plant in
Chandigarh and Delhi, which receive orders and supply goods.
Channels of Distributions:
Following pattern has been adopted by the plant for transferring goods to ultimate
consumers.
Direct selling to consumers.
To consumers through distributors.
To consumers through retailers.
Store Department
17
The main function of store department are receipt of goods, stores and issue of materials when
needed and keeping proper record of all incoming and outgoing materials.
The stores department has two main branches:
1) General stores.
2) Finished Goods stores.
Ghee Store.
Paneer Store.
Milk Powder Store.
Ghee and powder can stored at room temp’ but paneer can be stored in refrigeration or
cold temperature (–3°C).
Water supply and Disposal
A regular supply of water is must in the plant because of the nature of products and production
process. The two tube wells in the plant serve this purpose. There is plant which converts hard
water into soft water on the basis of ion-exchange principle. soft water is used for all purposes in
plant.
Disposal
Water cleaned by E.T.P. (Effluent treatment plant) then moves to the disposal tank and from here
it is disposed off in the field with the help of two disposal pumps of 30 and 40 HP respectively.
This treated water is good for crops and at present supplied free of cost to the farmers.
Pasteurization
Pasteurization refers to the process of heating each and every particle of milk to atleast 63°C for
30 minutes or 72°C for 15 second in approved and properly equipment and immediately cooling
it to or below
Purpose
18
To render milk safe for human consumption by destruction of percent pathogenic
microorganism.
To improve the keeping quality of milk by destruction of almost all spoilage organisms
(85-99 percent)
2.4Detail of products sold
PRODUCTS MANUFACTURE BY PLANT ITSELF
GHEE
CURD
PANEER
19
FLAVOURED MILK
Flavoured milk is available in four different flavor.
MILK
JALJEERA
21
LASSI
22
Butter
Jalebi
Tomato Soup
23
Ultimate Consumer
Dealer
Retailer
VITA Consumer Goods
Industrial Users
VITA Industrial Goods
2.5Sale System Of Vita Milk Plant
Any sequence of institution from the producer to the consumer including one or
any number if middlemen are called distribution.
VITA MILK PLANT DISTRIBUTION CHANNEL
\
24
(1) Manufacture – Ultimate Consumer
Here in this part Vita have no intermediaries. It is called direct distribution
channel. Vita has its own shops and has good selling of products.
(2) Manufacture – Retailer – Ultimate Consumer
In this part of distribution Vita supply its product in only in Jind City.
(3) Manufacture – Dealer – Retailer – Ultimate Consumer
And all other shops of Vita allied this channel.
25
Chapter-3
RESEARCH METHODOLOGY & OBJECTIVE
Objective of the Study
Most products do not sell their goods directly to the final users. Between producers and final
users stand the marketing channel. These include the Retailers or Shopkeepers.
From this study it was expected to find out that:
To know the level of support provided by the company to the retailers.
To find out the problems faced by the retailer in selling and promoting the vita
products.
To find out what type of benefits should be provided to the retailers in order to
maintaining good relations with them.
To know the products which are highly demanded by consumer so that their supply
can be increase and thus profitability.
To know the preference level of the consumers for vita products in comparison to
products of competetitors.
To know the factors considered by consumers while buying milk products.
To find out whether both retailers and customers are satisfied with the schemes
provided by the company on festive season or not.
26
Scope of the Study
The study involved the market survey of Sirsa, which is a major market of Vita products. The
study is aimed at finding out the image of Vita, hold in this market and also to find out the
retailers problem in the sale of Vita products. The aspect covered includes the kind of
competition prevalent in the market, the growth of Vita and promotional practices to ensure
quick movement of product from retail counters.
Company is definitely in the advantageous position because of their high image rate.
The entire customer is the central point in the marketing strategy of almost all the players. Thus,
emphasis is on building customer satisfaction through Service & Quality.
o Supply system.
o Advertisement facilities.
o Better quality
o Easy Availability
o Proper Packaging
Research design
Research Design is purely and simply a framework for the study that guides the
collection and analysis of the data.
There are basically three research designs:
Exploratory
Descriptive
Experiments.
All the three designs are not mutually exclusive and combination of all three could be
used for the successful completion of the project report.
27
DESCRIPTIVE
EXPLORATORY EXPERIMENT
The research design used for the present problem is Exploratory Research Design, as the
retailer’s survey is conducted to get the desired information. Exploratory study is
characterized by flexibility and informality.
This study will help Milk fed to have more sellers for its products and will help in
improving and further strengthening its relation with retailers because it is in the hands of the
retailers to sell the product, they are the ultimate decision makers for increasing the sale of
various brands. Study will also help the company to improve service in the market and to
improve upon the areas in which it is lagging.
Data collection method
The data collection method used for this very study is Primary and secondary data
collection. Communication and Observation are two basic means of obtaining primary data.
For this problem Communication is used which involves the questioning of respondents
to secure the desired information using a data collection instruments called Questionnaire.
For the present problem structured and undisguised questionnaire schedule is used for
retailers and end users. In the structured questionnaire questions are presented with exactly the
same wording and in exactly the same order to all respondents. A good mix of opens and close-
ended questions were being asked from the respondents to get the desired information.
Presenting of questionnaire
The questionnaire schedule mentioned above was administered to the retailers and
customers of Sirsa city and was tested against the criteria of ease of administration,
28
continuity and flow of sharp focus of question. The drawbacks were identified and the
questionnaire was accordingly modified before being administered to the other sectors.
Sampling Plan
Sample of 25 retailers and 50 customers were selected from various areas of Sirsa.
Regardless of the method used to obtain the primary data the researcher has to decide whether to
use census method i.e. only a small portion of population. As it is very difficult to contain
information in census method, so normally sampling method is followed.
There are mainly two categories, under which various sampling methods can be put:
Probability Sampling Method.
Non-Probability Sampling Method.
In this study Convenience sampling under Non-Probability Sampling is followed.
Retailers and customers were selected by this method from the city.
Field Work
As the study mainly aims at what retailers and customers think about Vita and
also to know through them that what their preferences are.
The main interest of the study was to find out the brands more acceptable to the customer
on the basis of price, quality advertisement and range wise, what type of service are provided to
retailers and customer the company, Scheme offered by the company and the problems retailers
face with various brands.
29
Chapter-4
DATA ANALYSIS AND INTERPREATION
The analysis has been done on the basis of data collected from Retailers
(Sample size 25) through questionnaire.
1. Which Vita product you sell most?
Milk Dahi Makhan Ghee Any other
14 3 3 2 3
Milk 56%
Dahi 12%
Makhan 12%
Ghee8%
Any other 12%
Interpretation:
76% of the sample size said that the milk is highly demanded in the market and this may be
probably due to the less no’ of competitors but as a new competitor named “LAKSHAY” has recently
entered market so the company should increase the promotional efforts and also provide some more
benefits to the retailers to give a boost to them to maintain the sales. Only 12% of the retailers agreed that
there is demand for vita butter in the market. This is surely due to the high demand of amul butter.
Company should work on improving quality and building brand image.
30
2. Do you face any problem with the quality of Vita's products?
Yes No.
2 23
2
23
Yes No.
Interpretation:
Survey transpired that, 92% of the retailers/respondents were satisfied with vita milk
products, whereas only 8% respondents were having some complaints, which meant that
company's products are good. This is probably due to the quality standards maintained by the
company. But there is a need to conduct surveys to know the quality problems to retain the
market for long term.
31
3. Are you happy with the services provided by the company?
Yes No.
6 19
6
19
Yes No.
Interpretation:
Survey transpired an astonishing fact that 76% of the retailers/respondents were not
satisfied with the services provided by the company. They highlighted the problems regarding
low query resolution and even sometimes the stock was not provided on time which overall
affects customers. 24% of retailers were satisfied but the company should increase this % of
satisfied retailers to build a strong distribution network.
32
4. If no, which type of problem you are facing?
Non-availability in
season
Poor Dealer's
Network
Both
2 3 20
Non-availability in season
Poor Dealer's Network Both
23
20
Interpretation:
During the Survey this fact came into light that 8% of retailers/respondents are facing
problems regarding non-availability of products in season and 12% are facing problem of poor
dealer's network, retailers themselves go to the dealers' shop to purchase any vita product. 80%
of the Retailers were having both of these problems. The company should solve this problem as
soon as possible otherwise market will be captured by the competitors.
33
5. Whether any advertisement material is provided by the company?
Yes No
17 8
17
8
Yes No
Interpretation:
During the Survey this fact came into light that 68% of the retailers/respondents agreed to
the fact that they were provided enough advertising material which is very important for window
display to catch the attention of customers.
34
6. Whether any promotional scheme is provided by the company?
Yes No
2 23
23
2
No
Interpretation:
During the Survey this fact came into light that retailers/respondents are not provided any
promotional schemes, 92% of the respondents told that they are not provided any scheme,
whereas only 8% said that they were provided promotional schemes. If this will continue the
company will not be able to build and maintain a strong distribution network and will not be able to retain
market share.
35
7. For how long company's representative visits you ?
Once in fortnight Once in month Never
3 2 20
3
2
20
Once in fortnight Once in month Never
Interpretation:
During the Survey this fact came into light that company's executive visits only to
nominal retailers. 80% of the retailers admitted that no company's executive ever visited them.
Only 20% admitted that executives visit them fortnightly or monthly. If the retailers are not
attended properly then they may get churned by the competitors as distribution network will be
very weak.
36
8. Do you sell only vita milk or other products also?
Yes No
11 14
11
14
Yes No
Interpretation:
During the Survey this fact came into light that 56% of retailers/respondents are not
selling vita's products other than milk product, whereas 44% were selling other products with
milk products. This may be probably due to the low margins, low demand or defects in
supplying so the company should work on this to build strong channels to make availability of all
products at maximum places to push sales and thus profit margins.
37
9. If no, why don't you sell other products?
Less demand in
the market
Less Quality Company's poor
marketing
strategy
Any other
6 6 7 6
6
82
6Less de-mand in the marketLess Qual-ity
Interpretation:
28% of the retailers told that the reason for not selling other products of vita then milk was only due to
poor marketing strategy of the company. There are no promotional schemes and advertisements are also
not attracting the masses.Other retailers pointed out that-
24% said it was merely due to poor quality, other 24% blamed it on less demand and other 24% told no
specific reason for the same.
38
Any suggestion ?
When the retailers/respondents were sought suggestions regarding the Vita's products,
there were some complains and suggestions for the company. Some of the respondents told that
most of the company's products are not popular among the general public except milk. Company
should emphasize on other products, some were seeking better service from the company. Some
respondents told that in order to stimulate the other products company should make some
advertisements and initiate some innovative schemes.
39
The analysis has been done on the basis of data collected from Customers
(Sample size 50) through questionnaire.
1. Which Vita' product you purchase most? Milk Butter Paneer Any other
38 4 3 5
38
4
35
MilkButter PaneerAny other
Interpretation:
During the Survey this when the customer/respondents were queried that
which product they purchase most, 76% of consumers were inclined towards the
milk,whereas only 8% and 6% respondents use to buy butter and paneer
respectively from the company, 10% of respondents are buying other products.
High sales of milk are surely due to high quality but sales butter should be
increased.There is a need to adopt suitable strategies concerning “AMUL”.
40
2. How'll you rate Vita's products?
Very good Good Average Can't say
34 8 3 5
34
8
35
Very good Good AverageCan't say
Interpretation:
When the customer/respondents were asked to rate vita milk products, 68% of
respondents rated the products as 'very good' , 16% rated them as 'good and 6% of consumers
found the products to be average. And remaining 10% have not expressed their views on the
question. There is a need to improve quality standards so tha all consumers can be brought under
the category of completely satisfied consumers.
41
3. Whether advertisement effects your purchasing decision?
Yes No
32 18
32
18
Yes No
Interpretation:
During the survey, it has come into light that 64% of respondents think that
advertisement of any company effects their purchasing decision, whereas 36% of respondent's
reply was negative. Therefore the company should make effective advertisements to attract more
and more customers to increase market share.
42
4. Whether you faced any shortage of milk in the summer season?
Yes No
39 11
39
11
Yes No
Interpretation:
During the survey, it has come into light that 78% of customers said that they faced the
problem of shortage which means that the products were not available when required.This highly
hampers the sales and profits of the company as due to this the customers get turned to products
of competitiors.
5. How would you rate Vita's product quality?
43
Better than others Same as others Worse than others
28 17 5
2817
5Better than others
Same as others
Worse than others
Interpretation:
During the survey, it has come into light that 56% of respondents think that Vita's
products are better than others, 34% were unable to differentiate the quality of Vita's products
with others whereas according to 10% of remaining respondents, Vita's products' quality is
inferior than others. The company needs to work on improving quality and may undertake
activities like new packing patterns which are attractive to differentiate the products from those
of others. A survey among customers who are not satisfied with products should be done to look
for loop holes and win their confidence also.
44
6. How would you rate the price of Vita's products?
Very high high Moderate
4 11 35
4
11
35
Very high
high
Moderate
Interpretation:
Quality comes with a “Price”, we all know about this fact. So if the product is of good quality consumers
don’t mind paying price but it should not be so high that customers find it costly. The company can
introduce products in different segments for different consumers price wise but not compromising much
with quality. 70% of consumers find the price moderate and 22% find vita’s products highly priced. And
remaining 8% very high so there is a need to introduce products price segments wise.
7. Whether company provide replacement scheme?
45
Yes No
38 12
38
12
Yes No
Interpretation:
When the respondents were queried whether their products are replaced in case of
deficiency in the product, 76% of respondents told that products are replaced in case of
deficiency.This is important to win customers’s confidence and enhance their loyalty.
8. While making purchase what are the key factors you consider?
46
Quality Price Brand Name All of these
11 12 19 8
11
1219
8Quality
Price
Brand Name
All of these
Interpretation:
When the respondents were queried that which factor affects most their buying behavior.
38% admitted that brand name effect their decision, 24% of respondents consider price of the
product, 22% of respondents were saying about the quality. Despite above all there were 16% of
respondents who consider all above factors while purchasing. This simply means that company
should make efforts for brand building and products should also be supplied at reasonable prices
to retain the market and quality should not be compromised at all.
9. Whether company provides any scheme on various festive occasions?
47
Yes No
3 47
3
47
Yes No
Interpretation:
In today’s competitive market it is very important to exploit opportunities so there is a need to
provide schemes on festive seasons.94% of customers said that there are no promotional schemes
provided by the company. Like on festivals like diwali company can introduce gift packs of
sweets etc.
10. Any Suggestion
48
When the respondents were asked for any suggestion, most of the people were saying that
company should improve its retailer's network and better services should be provided there.
Some also told that company have to manage the crises of shortage of milk in summer season.
There were also some suggestions regarding the advertisement of the vita products, there
is no display board of Vita on the retailers' shop. Some suggested that company should do some
thing for other products. They are lagging far behind than milk.
49
Major Findings
There are five milk plants operating in the Cooperative Sector in Haryana. These are
located at Ambala, Jind, Rohtak, Sirsa and Ballabgarh having a handling capacity of
4,70,000 litres per day.
The company enjoys a good image but the problem one of the main problem is in the
distribution network. Products like flavoured milk are not available most of the times thus
hampering the profitability.
Such products usually attract youth and kids and can increase the profits if promoted
properly.
Retailers complained that there are no promotional schemes for them which are no doubt
very important in todays’s competitive market to pump up sales.
Usually there are no schemes on Festive season for consumers. Though festivals like
Diwali could be exploited to maximize sales. Gift packs of Sweets can be introduced on
Festve seasons.
As specifically Concerning Sirsa and other parts of Haryana there is a need to increase
the no’ of booths so that the products are easily available.
The competition is rising, Recently a new competetior “Lakshay” has stepped in, so
there is a need to carry out promotional activities to attract customers.
Retailers also complained that the less promotional material was provided to them by the
company. Though it is very important now a days to attract the attention of customers.
50
Though Vita is a trusted brand in Haryana but it is important to capture the new markets
to retain in market. So there is a need to enhance distribution channels.
It is also required on the part of the company to provide some variety to consumers so
that they are not taken away by competetiors. Like more variety in flavoured milk could
be introduced to attract youth and segment of kids.
The company is not doing anything to enhance relations with customers which is very
important today. Though it is a govt’ organization but still the competition is increasing
and it is important to keep customers intact.
51
CHAPTER-5
CONCLUSION AND LIMITATIONS
Conclusion
Retailers are the most important link between manufacturers and consumers as it's in their
hands to sell the product. The retailer will only go for that company whose products not only are
in demand but also which keep the retailers benefits in mind.
Now day’s customers are very concerned and careful about the products they buy and
want the best. Customer is the pivotal point in the marketing strategy of almost all the players.
In summer seasons there always remains shortage of milk, which not only troubles
retailers but also to the consumers. Market survey reveals that Vita products hold a good
position in Sirsa city. Mostly milk's sale is best in the market. Vita's products are good in the
market as is clear from 23 retailers, who admit that they never faced any problem regarding
quality. This fact also came into light that most of the retailers are not satisfied with the
company's service. They personally go to the dealer's shop to purchase milk for their shop, no
company's executive visits them.
Non-availability of milk in summer season and poor dealer's network were the two major
problems for the retailers. Poor advertisement is also the major weakness of the company. Leave
the other advertisement sources, there were only a number of retailers, where board of Vita was
placed before there shops. There were 14 respondents, who were not selling other products of
vita. Mostly retailers sell only milk.
When I moved to the customers, they also admitted that they mostly purchase only milk
from Vita, only a few number of respondents purchase other products of vita.
52
Most of the customers rate Vita's products' quality as good. Most of the consumers
admitted that advertisement affects their buying behaviour. Consumers also admitted that they
faced crises during summer season.
Limitations
53
Various limitations, which have affected the completion of this project, are listed below. In
order to provide reader an insight into the special; considerations, pertaining to the work done.
As the study is entirely based on the Field Work and Surveys, so people give their own ideas
and assumptions, which sometime contradict each other and can not be ensured as accurate.
While doing the survey respondents take lots of time in understanding the question and
responding to them. More over due to confidential nature of the information in certain
aspects there may be a possibility off their having given certain inaccurate information.
Limited time span was also a problem.
While doing retailers survey, some of the retailers got busy while filling the questionnaire
and I was to wait for them.
As the survey was confined to 25 retailers and 50 consumers, so the chances of biasness can not
be ruled out.
CHAPTER-6
54
SUGGESTIONS
If we talk about the Vita's milk, company position is outstanding in the city, but when we
come to the other products of Vita, whole scenario changes and we come to know that company
is surviving in the market only on the basis of milk. Excluding 3/4 products of Vita, other are
only show piece in the retailers shop.
Company, in Sirsa is in advantageous position not only because of its quality but also for
its monopoly in the City. No other company sell milk in the city, so company has a hold over the
market but when company enters the market with other products, company's position gets
diminish because of other players in the market. Here are some suggestions, which Vita can
adopt :
First of all, company is suggested to enhance its dealers network, because of this weakness
both retailers and consumers are facing hardships.
Company should also pay its attention towards other products of the company. Even some of
the retailers were not in the knowledge of all products of the company.
Company has to think regarding advertisement of its products. Victory never means
cleverness. Though company's position is good, but it is only for milk, which is the need of
hour. In future, coming of new player can give a big jolt to the company so the company
should adopt some marketing strategies.
Some Marketing Sales Executives should be employed for the purposes of sales promotion.
Company should also provide innovative schemes on various festive occasions for both
retailers and consumers.
SOME OTHER RECOMMENDATIONS
55
Company already producing quality producers by working on Products Innovation,
Customer Care and overall Customer Satisfaction, but during the survey it is observed &
conclude that still there may some change to be brought.
More and more publicity.
Frequent visit to the customer.
Better and fast services to the customers.
Optimum use of promotional tools.
Stress on R & D department for the better finishing.
To formulate new scheme.
To give more guidance to the customers.
To give Prizes to the customers.
To improve the packaging positive.
To improve the behavior of the workers.
To start coupon schemes because to attract customer
Customer awareness is necessary.
Reference
56
www.vitaindia.com
www.google.co.in
www.wikipedia.com
Customers of VITA products.
Retailers of VITA products.
Books Used:
o C.R. Kothari (Business research methodology)
o Philip Kotler (Marketing Management)
ANNEXURE
QUESTIONNAIRE
57
(For Retailers)
This questionnaire is a compulsory part of a project report, needed for the award of
master Degree in Business Administration (MBA). Please answer the following
questions. The data gathered here shall strictly be kept confidential and shall be
used only for academic purposes.
Name …………………………. Firm name ………………………..
1. Which Vita product you sell most ?
i) Milk ii) Dahi iii) Makhan
iv) Ghee v) Any other
2. Do you face any problem with the quality of Vita's products?
i) Yes ii) No
3. Are you happy with the services provided by the company?
i) Yes ii) No
4. If no, which type of problem you are facing?
i) Non-availability in season
ii) Poor Dealer's Network
iii) Both
5. Whether any advertisement material is provided by the company?
58
i) Yes ii) No
6. Whether any promotional scheme is provided by the company?
i) Yes ii) No
7. For how long company's representative visits you ?
i) Once in fortnight
ii) Once in month iii) Never
8. Do you sell products of vita, other than milk products?
i) Yes ii) No
9. If no, why don't you sell other products?
i) Less demand in the market ii) Less Quality
iii) Company's poor marketing strategy
iv) Any other
10. Any suggestion ?
………………………………………………………
QUESTIONNAIRE
59
(For Consumer)
This questionnaire is a compulsory part of a project report, needed for the award of
master Degree in Business Administration (MBA). Please answer the following
questions. The data gathered here shall strictly be kept confidential and shall be
used only for academic purposes.
Name …………………………. Age……………………….
F's Name ……….…………. Occupation ……………….
1. Which Vita' product you purchase most?
i) Milk ii) Butter
iii) Paneer iv) Any other
2. How'll you rate Vita's products?
i) Very good ii) Good
iii) Average iv) Can't say
3. Whether advertisement effects your purchasing decision?
i) Yes ii) No
60
4. Whether you faced any shortage of milk in the summer season?
i) Yes ii) No
5. How would you rate Vita's product quality?
i) Better than others
ii) Same as others
iii) Worse than others
6. How would you rate the price of Vita's products?
i) Very high ii) High
iii) Moderate
7. Whether company provide replacement scheme?
i) Yes ii) No
8. While making purchase what are the key factors you consider?
i) Quality ii) Price
iii) Brand Name iv) All of these
9. Whether company provides any scheme on various festive occasions?
i) Yes ii) No
10. Any Suggestion………………..
61
