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Table of Contents
Sl. No 1. 2. Particulars Executive Summary Industry profile 2.1 3 Brief history Page No. 5 10 11 14 15 17 24 25 29 32 42 56 59 61
Company profile 5.1 5.2 5.3 5.4 5.5 5.6 Karnataka Milk federation Dharwad milk union Organization chart Products Marketing department Promotional activities by KMF
6 7 8 11
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A study on Consumer awareness about Nandini Milk and Milk Products 12 13 Annexure Bibliography 63 67
EXECUTIVE SUMMARY
Title of the project: TO STUDY THE CONSUMER AWARENESS ABOUT NANDINI MILK AND MILK PRODUCTS, AND IMPACT OF PROMOTIONAL ACTIVITIES ON CREATING AWARENESS.
Objective of the study: To study the consumer awareness about Nandini Milk and Milk Products. To study impact of promotional activities on creating consumer awareness. Sub Objectives: To study the whole product range of Nandini Milk and Milk products. To study the customer expectations in Packaged Milk and Milk products. To study the promotional activities adopted by the company. To evaluate the impact of those activities on customers mind.
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RESEARCH METHODOLOGY:
Sample Size - 100
1) DATA COLLECTION METHODS USED: Primary and secondary data collected to carry out the research work. Primary data: Information was collected directly from the consumers for the project work. The data collected during the study included the data collected through questionnaire and face-to-face interview with customers. Secondary data: Secondary data includes data collection of information from newspapers, magazine reviews and Internet information about Processed Milk and Milk products industry.
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Sampling Method: The sample is selected based on non- probability sampling method. Sample size: Sample size is 100 customers. Using SPSS software: It involves a recorded observation into dissipate statement. The measurement and evaluation of data is done using SPSS 11.0 version software and Microsoft Excel for the graphical representations.
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Out of 11 customers who attended the campaigns, freshness of the product was learnt by 7 people, reliability of the Nandini brand was learnt by 5 people, hygiene in production by 4 and no adulteration in Milk and its products by 2 respondents. Out of 100 respondents 72% purchase Nandini Milk and Milk products. Out of 72 respondents who purchase Nandini Milk and Milk products 74% feels quality is great it is the main factor which influence them for repetitive purchase. Then 27% says taste, 23 % feels availability, 17% says thickness, 16% feels price which influence them in making purchase decision. Very less importance was given by the customers to fat content (15%) and promotional activities (6%) Out of 28 respondents who do not purchase Nandini Milk and Milk products price was said as the major factor with 64% response which influence their purchase decision. Second and third importance was given to availability and taste by 32% and 29%. Quality 07%, Fat content (11%), thickness (07%) and promotional activities (11%) are not major factors which prevents them for not being the customers
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SUGGESTIONS:
As there is very less awareness about Double toned milk the company should try to promote this product. The products like pot curd, Masala lassi, Sweet lassi has a great potential to grow in the market but the awareness is little less. So the company must take appropriate steps in order to increase the awareness. And much effort is needed to promote Khoa and Paneer. During the study I came to know that the availability of the milk products other than milk is very less. So the other milk products also made available to customer where ever the milk is available. That certainly increase the sales volume of milk products Consumers say they learnt about the product mainly through Television, wall paintings and banners. And feels television ads, banners, ad boards were more informatory. So the efforts of the company are going in a right direction. But only suggestion is to increase the frequency television ads and ad boards
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Conclusion
After analyzing the data of the study I conclude that the Toned milk is also in the queue with 46% of awareness and the Double Toned Milk is showing very poor awareness with only 15% of respondents are aware of it 29% felt wall paintings were more informatory. Radio ads, magazines, and campaigns were felt less informatory to about 15%, 16% and 10% respectively. Second and third importance was given to availability and taste by 32% and 29%. Quality 07%, Fat content (11%), thickness (07%) and promotional activities (11%) are not major factors which prevents them for not being the customers.
INDUSTRY PROFILE
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Brief History
India has a rich tradition in dairying since the time of Lord Krishna. Dairying has been inherent in Indian culture, for centuries. Milk and milk products have always been an integral part of our consumption habits. In the vast field of animal husbandry, the contribution of dairying has been most significant, in terms of employment, as well as income generation. In post-independence India, co-operative dairying has been one of our major success stories, having a profound impact on socio-economic development of rural areas. Today, India is the largest milk producer in the world with record production of 91.5 million tons. India stands first in world milk production with a share of about 14 per cent in world milk production. Milk has achieved unique status in terms of its output value exceeding Rs. 1,00,000 crores and has made rapid strides both in terms of number of milk producers and quantity of milk produced. In India, dairying is the second important subsidiary occupation in rural areas, next to the main occupation of agriculture. Livestock sub-sector alone contributed to 25 per cent of the total value of agricultural GDP. The development of dairy industry in India is well known all over the world as one of the most successful development programme in the globe. Dairy farming is visualized by the farmers in India as part of an integrated agricultural system where dairy and agriculture complement each other. The milk production in India was 17 million tonnes in 1950-51. This could meet only 25 per cent of the domestic demand, the remaining 75 per cent of the demand was met by importing the milk solids. The production was stagnant for two decades till 1970, with annual growth rate of milk production of one per cent. Thanks to the vision and foresight of Dr. Kurien, in 1970, NDDB launched Operation Flood Program with objective of ending milk famine in the country and turning farmers co-operatives into powerful catalyst for transforming India into major milk producer in the world. Further, by providing milk producers remunerative prices round the year, milk production in India touched 74 million tons since 1997. By the year 2000, India tops to emerge as the largest Babasabpatilfreepptmba.com Page 12
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---COMPANY PROFILE
KARNATAKA MILK FEDERATION
The first dairy in Karnataka was started in Kudige in Kodagu district in 1955. Further in June 1974; an integrated project was launched in Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to lay foundation for a new direction in dairy development. In 1975, the World Bank aided dairy development was initiated. The present Karnataka Milk Federation (KMF) came into existence in 1984-as a result of merging of Karnataka Dairy Development Co-operation, small co-operatives and Karnataka Milk Production Development and loose vendors. At the end of the March 1998, the network of 8023 Diary Co-operative Societies (DCS) have been established which are spread over 166 taluks of the total 175 taluks in all 27 districts of Karnataka. There are 13 Milk Unions and Dharwad Milk Union (DMU) is one among them. There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants and 2 Product dairies for chilling, processing, conservation and marketing of milk. To supply cattle feed there are 4 cattle feed plants. To ensure supply of quality germ plasma, bull breeding farm and frozen semen bank are also available. Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the apex Body in Karnataka representing Dairy Cooperatives. It is the third largest dairy cooperative amongst the dairy cooperatives in the country. Babasabpatilfreepptmba.com Page 16
To impart training, institutes at Bangalore and regional training institutes at Dharwad and Gulbarga are functioning. Three nitrogen plants (2 plants of 25 CPM and 1 plant of 5 CPM) are been set-up to supply nitrogen, which is used for refrigeration purpose. Three diagnostic centers have been set-up for monitoring diseases, three fodder farms at Rajkunte, Kuttanahalli and Kodagu have been set-up to supply good quality of fodder and seed production farm at Shahpur has been set-up. The federation giving details of the latest technology in dairy industry etc is published "Ksheer Sagar" magazine monthly.
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INTRODUCTION TO DMU
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ESTABLISHMENT:
The Dharwad Milk Union is one Co-operative society among the 13 establishments, under KMF: The Dharwad Milk Union (DMU) is one of the most modern plants in the country. It is located in the spacious 25 acres of land, located in Lakamanahalli Industrial Area; adjacent to the National Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat.
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FUNCTIONS OF DMU:
The main function of DMU is to procure milk from villagers and pay them the right price. To educate the villagers about milk and its quality. To make 'Nandini' as a part of daily life. To provide good quality of cattle feed, fodder, veterinary aid seeds, etc., to the villagers. To see that the DCS's are carrying out their activities properly and in an efficient manner. To see that the milk is brought from DCS's to the chilling centers in the prescribed time. To look the accounts of the DCS's supervise the purchase process and market the milk and milk products.
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OBJECTIVES OF DMU:
Providing hygienic and good quality of milk to the consumers. To build the economic strength of the milk producers in villagers. To eliminate middlemen's in the business so that the milk producers receive their appropriate share of bread. To educate the villagers about the adulteration of milk and its harmful effect on the body. To see that every citizen becomes healthy by consuming good quality of milk. To make villagers self-viable and build self image.
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A study on Consumer awareness about Nandini Milk and Milk Products DETAILS OF DHARWAD MILK UNION
Status A co-operative society registered under the Co-operative act 1959 Nature of Business Procuring and Marketing of Milk Production and Sale of Milk Products Share Capital Plant Capacity 3 crores Approx. 2 Lakhs Liters / day Milk Powder 12 MT /Day Butter 6 MT / Day Ghee 6 MT / Day Milk Chilling Centres Gagad Haveri 20000 LPD 20000 LPD
and Capacity
Hirekerur 20000 LPD Naragund Ron Sirsi Karwar packing unit 8000 LPD 10000 LPD 20000 LPD
The milk in bulk is sent for packing and distribution at Karwar Which supplies and need of Karwar, Gokama, Honnavar, Bhatkal, Murdeshwar and Goa
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70000 LPD
60000 LPD
Area of Operation
Board of Directors
8 5 3
383 Workers Lakamanahalli Industrial Area, Dharwad 8 Nandini Milk Toned Milk, Standard Milk, Shubham Milk Milk Products Butter, Ghee, Pedha, Curd, Lassi, Paneer, Milk Powder
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ORGANIZATION CHART
Presidents
Director (Elected-8)
Director (Ex-officer-5)
Directors
(Nominated-3)
Managing director
P&I
Production
Finance
Admin
Security
Marketing
Dy Manager
Dy Manager
Dy Manager
Dy Manager
Sr. Supervisor
Dy Manager
Extension Officer
Q.C Officer
A/cs Assistant
Assistant
Jr.Supervis or
Assistant
Helper
Assistant
Helper
Helper
Guards
Helper
Workers
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Product Name
Maximum Price of Sale 17.00 19.00 20.00 100.00 4.00 16.00 5.00
Subham Milk 5 liter in pack Standard Milk 200 Ml pack Double Toned Milk Curd 200 gm
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Pedha per kg Khoa per kg Paneer 200 gm pack / kg Paneer Bulk Ghee 200 Ml Pack / Liter Ghee 500 Ml Pack / Liter Ghee 1000 Ml Pack / Liter Ghee 15 kg tin/Kg
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OTHER PRODUCTS
Sl No. 1.
Product Name Badam Powder 200 gm Tin/Kg Badam Powder 200 gm Tin/Kg Badam Powder 10 gm Tin/Kg
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MARKETING DEPARTMENT.
The marketing department of DMU is considerably extensive which covers an Area viz., North Goa, Uttar Kannada district, Haveri, Gadag, Hubli and Dharwad. Marketing of milk and products is done under brand name Nandini. Except loose milk other products are marketed by KMF, the marketing agency. Due to perishable nature of products the greatest responsibility is over marketing department to all the products before losing its quality. Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to co-operative organization and other benefits received from the state government. But Babasabpatilfreepptmba.com Page 31
To prepare the marketing plan at the beginning of every year, taking into consideration the demand, sales, production capacity. To undertake promotional activities in order to create awareness and to generate sales. To ensure proper supply chain management. To study competitors products and their strategies.
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Dharwad Co-operative milk producers union Ltd., Dharwad Month and Year wise average milk sales statement (without bulk sales)
Month 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
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KMF found the need for adopting the promotional activities in order to create awareness about the product which intern lead to increase in sales and help the company to increase its market share. The company has undertaken various promotional activities in order to increase the market share of its Milk and Milk products. The following are the major promotional activities carried over by KMF:
Advertisements
Magazines Hoardings Ad boards Banners Dealer displays Television Radio etc
Awareness campaigns
Door to door Mass campaigns
ADVERTISEMENTS:
Now a days advertisement is the well known, most effective, and common means of promotional activity. Advertisement is a complex form of communication that operates with objectives and strategies leading to various types of impact on consumer thoughts, feelings and actions. It is the best way to keep your customer updated and give an
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MAGAZINES:
All the leading Kannada magazines are used by the company for advertising. Especially the weekly and monthly magazines are used to a greater extent. The special
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HOARDINGS:
These are also very effective ads, where in the large hoardings with the ad message are put in the much clustered areas or on the sides of the roads. These are designed in such a way that just to remind about the brands. Usually this doesnt give the detailed information about the brand but to remind about the brand and to show the availability.
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BANNERS:
Banners are also play important role in creating awareness. They are the one which carry the message of the product or brand and catches the eye of consumers very easily. They are so compatible in nature that you can use them at any place. For ex, the banners can be used at dealers or outlets, can be tied in a crowded area, can be used in a promotional campaigns etc
DEALER DISPLAYS:
The dealer displays are the display boards given by the company for displaying the product information. They are exclusively given to dealers only which contain lighting facility which make them clearly visible at the night also. These boards displays the products that are available and also to make separate identity for the dealers.
AD BOARDS:
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These are the tin boards and hard plastic boards which carry the information about individual products and of all products. There are two types of ad boards, namely Rectangle boards, cone boards. Usually these are used to advertise on public transport systems (back of city bus) and to display at the dealer outlets. informatory compared to the hoardings. These are more
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A study on Consumer awareness about Nandini Milk and Milk Products AWARENESS CAMPAIGNS:
Awareness campaigns are the campaigns organized by the KMF for promoting the Nandini Milk and Milk products. The awareness campaigns are organized by the marketing department of the company in which the company officials try to make the consumers aware about all the products available at Nandini counter. Also the officials try to convey the parameters which have to be looked while purchasing the milk and milk products. The consumers are given knowledge of the steps taken by KMF in order to provide them the healthier products which are processed with hygiene. The company officials also give knowledge to the consumers that how they are cheated by the private suppliers by doing adulteration and how that will affect their and their childrens health. In total the awareness campaigns never force the consumer to purchase the Nandini products but help them in decision making by comparing Nandini products with that of other private branded products. Usually this kind of awareness campaigns are organized in developing market and in the areas where the sales is less, and in the area where comparatively less educated people are there. Because the less educated consumers are week in decision making so these campaigns gives them a platform to think and decide.
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There are two types of awareness campaigns practiced by the company. They are:
MASS CAMPAIGNS:
Mass campaigns are carried over where there is a crowd. In such areas the officials take opportunity to make the crowd understand about the quality of the product, the factors to be looked after while purchasing the milk products. And also educate the crowd about the product mix of Nandini. These type of campaigns are organized in Melas, Fairs, and in sponsored programs like Mahila Mandal programs, functions in school and colleges etc... Compared to door to door campaigns the mass campaigns are less expensive and less time consuming. But the results of mass campaigns are not so favorable as of door to door campaigns.
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---ANALYSIS
INTERPRETATION AND ANALYSIS
Keeping in view of the objectives, the data so collected from various sources and were analyzed with the help of appropriate techniques. The results of the study are presented in this chapter under the following headings. Table 1: Number of respondents aware about NANDINI Brand of Milk and Milk products Valid Percent 100.0 Cumulative Percent 100.0
Frequency Yes
120
Percent 100.0
100
100
100
80
60
40
Frequency
20
0 Yes
Figure 1: Number of respondents aware about NANDINI Brand of Milk and Milk
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DTM
As the graph depicts among the milk brands of Nandini Standard milk carries highest of 60% of awareness, the next is Shubham Milk which carries the 58% of Babasabpatilfreepptmba.com Page 48
awareness. Toned milk is also in the queue with 46% of awareness and the Double Toned Milk is showing very poor awareness with only 15% of respondents are aware of it.
Table 3: extent of awareness about the Nandini milk products Note : Figures in the parenthesis indicate % to the total
80 70 60
Respondents
50 40 30 20 10 0 Curd P Curd S lassy M lasy Pedha products Khova Paneer Butter Ghee Series1
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Fig 4: Table 4: factors looked while purchasing the Milk and Milk Products When we tried to know what are the parameters which are looked while purchasing the milk and milk products the overall quality was given more importance with 74% then the next importance is given for taste with 52% response. Availability thickness and price comes next with 31%, 26% and 26% where as the fat content carries very less importance with only 17% looking for that.
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No 70 91 64 58 45 79 78 (70%) (91%) (64%) (58%) (45%) (79%) (78%) 100 100 100 100 100 100 100
30 09 36 42 55 21 22
fig 5: Sources of knowing about NANDINI products The learning about the products is happened to the great extent by Television 55% and wall paintings 42%. The banners and dealers also contributed in learning process by 36% and 30% respectively. 22% and 21% people came to know about the product s through magazines and radio ads, and only 9% of respondents learn about the products through campaigns which is the least.
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96 4 100
100 96 80
60
40
Frequency
20
0 Yes No
Fig 6: Extent of observation of advertisements of NANDINI products 96 % of the respondents have observed the advertisements of Nandini Milk and Milk products. Its a very good indicator that the efforts of the company are reaching the public.
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100
80
77
60
40
Frequency
20
19
0 Yes No
Fig 7: Were they informatory Among 96 respondents who have observed the advertisements 77 respondents (80%) feel that the ads were informatory. Only 20% feels they were not so informatory.
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Yes Banners Ad boards Campaigns Wall paintings Television ads Radio ads Magazines 34 30 10 29 58 15 16 (44%) (39%) (12%) (38%) (75%) (19.5%) (21%)
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Fig 8: efficiency of media vehicles used When we asked which of the ads were more informatory 58% felt television, 34% says Banners, 30% felt ad boards, and 29% felt wall paintings were more informatory. Radio ads, magazines, and campaigns were felt less informatory with 15%,16% and 10% response. Table 9: Number of awareness campaigns attended by the respondents
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89 80
60
40
Frequency
20
11 0 Yes No
Only 11 persons out of 100 have attended awareness campaigns which show the company has failed to reach to maximum number of customers through campaigns.
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Reliability of brand 05
Out of 11 customers who attended the campaigns , freshness of the product was learnt by 7 people, reliability of the Nandini brand was learnt by 5 people, hygiene in production by 4 and no adulteration in Milk and its products by 2 respondents.
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80
72
60
40
28 20
Frequency
0 Yes No
Out of 100 respondents 72% purchase Nandini Milk and Milk products. And 28% do not purchase Nandini Milk and Milk products.
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Parameters Quality Thickness Fat content Price Taste Availability Promotional activity
Table12: Factors influencing for repetitive purchase NANDINI Milk and Milk Products Note : Figures in the parenthesis indicate % to the total
60 50 40 30 20 10 0 Series1
Quality
Fat content
Taste
Pro activity
Fig 12: Factors influencing for repetitive purchase NANDINI Milk and Milk Products Out of 72 respondents who purchase Nandini Milk and Milk products 74% feels quality is great it is the main factor which influence them for repetitive purchase. Then
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influence them in making purchase decision. Very less importance was given by the customers to fat content (15%) and promotional activities (6%). Table 13: Reasons which forces for not purchasing NANDINI Milk and Milk Products : Note : Figures in the parenthesis indicate % to the total
18 16 14 12 10 8 6 4 2 0 Quality Fat content Taste Pro activity Series1
Fig13: Reasons which forces for not purchasing NANDINI Milk and Milk Products :
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---FINDINGS
Findings of the study:
There is 100% of the respondents are aware of Nandini brand Nandini Standard milk carries highest of 60% of awareness, the next is Shubham Milk which carries the 58% of awareness. Toned milk is also in the queue with 46% of awareness and the Double Toned Milk is showing very poor awareness with only 15% of respondents are aware of it Curd, Ghee, Pedha and Butter are having the greater awareness i.e.76%, 62%, 55% and 54% of awareness respectively. The Pot curd, Masala lassi and Sweet lassi carry little less awareness as compared to the first 4 products with a response of 43%,48% and 44%. Among all products Khoa and Paneer are the 2 products with very less response of 33% and 29%. Quality was given more importance with 74%, then the next importance is given for taste with 52% response. Availability thickness and price comes next with 31%, 26% and 26% where as the fat content carries very less importance with only 17% looking while purchasing milk and milk products The learning about the products is happened to the great extent by Television 55% and wall paintings 42%. The banners and dealers also contributed in learning process by 36% and 30% respectively. 22% and 21% people came to know about the product s through magazines and radio ads, and only 9% of respondents learn about the products through campaigns
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Out of 11 customers who attended the campaigns, freshness of the product was learnt by 7 people, reliability of the Nandini brand was learnt by 5 people, hygiene in production by 4 and no adulteration in Milk and its products by 2 respondents. Out of 100 respondents 72% purchase Nandini Milk and Milk products. Out of 72 respondents who purchase Nandini Milk and Milk products 74% feels quality is great it is the main factor which influence them for repetitive purchase. Then 27% says taste, 23 % feels availability, 17% says thickness, 16% feels price which influence them in making purchase decision. Very less importance was given by the customers to fat content (15%) and promotional activities (6%) Out of 28 respondents who do not purchase Nandini Milk and Milk products price was said as the major factor with 64% response which influence their purchase decision. Second and third importance was given to availability and taste by 32% and 29%. Quality 07%, Fat content (11%), thickness (07%) and promotional activities (11%) are not major factors which prevents them for not being the customers.
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---SUGGESTIONS
SUGGESTIONS:
As there is very less awareness about Double toned milk the company should try to promote this product. The products like pot curd, Masala lassi, Sweet lassi has a great potential to grow in the market but the awareness is little less. So the company must take appropriate steps in order to increase the awareness. And much effort is needed to promote Khoa and Paneer. During the study I came to know that the availability of the milk products other than milk is very less. So the other milk products also made available to customer where ever the milk is available. That certainly increase the sales volume of milk products Consumers say they learnt about the product mainly through Television, wall paintings and banners. And feels television ads, banners, ad boards were more informatory. So the efforts of the company are going in a right direction. But only suggestion is to increase the frequency television ads and ad boards The customers expect Quality, taste and availability while purchasing the milk and milk products and the company has reached the expectation in case of quality and taste but a small effort is needed to increase the availability.
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---CONCLUSION
Conclusion
After analysing the data of the study I conclude that the Toned milk is also in the queue with 46% of awareness and the Double Toned Milk is showing very poor awareness with only 15% of respondents are aware of it 29% felt wall paintings were more informatory. Radio ads, magazines, and campaigns were felt less informatory to about 15%, 16% and 10% respectively. Second and third importance was given to availability and taste by 32% and 29%. Quality 07%, Fat content (11%), thickness (07%) and promotional activities (11%) are not major factors which prevents them for not being the customers.
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---ANNEXURE
Questionnaire Dear Sir/ Madam,
The information provided by you will be used for academic purpose only. Name: ____________________________________________ Address: ___________________________________________ Age: a. [15-20]
b. [20-25]
c. [25-30]
a. Yes
b. No
2. Which of the following Milk brands of NANDINI are known to you? a. Toned Milk b. Standard Milk c. Shubham Milk d. Double Toned Milk
a. Curd b.Pot curd c.Sweet lassy d. Masala lassy e. Pedha f. Khoa g. Paneer h. Butter i. Ghee
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a. Dealers b. Campaigns c. Banners d. Wall paintings e. T.V advertisements f. Radio Advertisements g. Magazines h. Others
a. Yes
7. Were they informatory?
b. No
a. Yes
b. No
a. Banners b. Ad Boards c. Campaigns d. Wall paintings e. T.V advertisements f. Radio Advertisements g. Magazines h. Others
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a. Yes
b. No
10. What you came to know about the NANDINI products in Awareness Campaigns?
a. Freshness of the product b. Hygeinity in production c. Reliability of the Brand d. No contamination of milk like in Private sector e. Others, If specify, ______________________________.
a. Yes
b. No
If Yes 12. Which of the following factors made you to repetitive purchase NANDINI Milk and Milk Products :
If No 13. Select the following reasons due to which you are not purchasing NANDINI Milk and Milk Products :
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THANK U
---BIBLIOGRAPHY
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Economic efficiency on milk products co-operative union in North Bihar. Indian Co-Operative Review Annual Report, National Dairy Development Board, Anand, Gujarat, India
INTERNET WEBSITES:
www.kmfnandini.com www.mofpi.nic.in,
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