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PROJECT REPORT
ON
SUBMITTED TO
UNIVERSITY OF PUNE, PUNE
SUBMITTED BY
AMOL S. KORDE.
1
ACKNOWLEDGEMENT
I would like to take this opportunity to thank the management of company for allowing
me to undertake a project in a company of international repute.
My special thanks and heartiest gratitude to Mr. Anand Karhade (Marketing Officer)
for his kind co-operation and timely help.
I am also thankful to DR. R. R. Berad Sir (Director). And my internal guide, Prof. G.
N. Salunke Sir for his assistance and encouragement, motivation and valuable advice from
time to time that guided me towards fulfillment of my project report successfully.
I would like to thank my family and friend for their moral support throughout this
project.
I sincerely hope that the project report will help the company and serve as guide to
those using this project.
Thanking you,
Amol S.
Korde.
2
DECLARATION
I, the undersigned hereby state that the report entitled “Market Potential for Milk and
Milk Product” with reference to Shivamrut milk in Akluj & Adjoining area is a genuine and
bonafide work prepared by me under the guidance of Prof. G. N. Salunke.
The empirical findings in this project report are based on the data collected by myself.
The matter presented in this report is not copied from any source. I understand that any copy is
liable to the punishment in the way the University authority dean fit.
The work has not been submitted for the award for any degree or diploma either to
University of Pune, or any other University.
This project report is submitted to the University of Pune in the partial fulfillment of the
degree of Master of Business Administration.
Date: ________
Place: ________
Signature
(AMOL S. KORDE)
3
EXECUTIVE SUMMARY
Location: - Akluj & Adjoining area
The main object of the project is to find out the scope, trade, and feasibility for milk
and milk product, which includes the retail survey, consumer survey.
In the retail survey which is termed as retail barometer researcher has to find out
various aspect related to the products available in the milk product category like name of the
manufacturer, brand name, visibility, pop material available, availability of the stock, sale
month, source of purchase, Frequency of supply, scheme operating, price to retailer, as well as
price to Consumer, manufacturing date Etc.
In the Consumer Survey the main thing was to execute scheduled and interview they
and customers should belong to the socio-Economic Classification.
In Third step researcher has to interview the customers for getting the details regarding
the product used by them as well as what are the expectations from the new product.
The major findings of the retail barometer were that the market for Milk product is
large because of daily used of milk by every human being. Shivamrut is the market leader in
category of the Milk & Warana in category of the Milk Product.
For the consumers survey is the same became people want fast action, low price and
easily available which is fulfilled by milk product only.
During the retail survey researcher found some new product also & they are as
follows:
4
From the consumers feedback given by the questionnaire researcher has given some
recommendations regarding the product that most of the people want the product available with
sweet taste and packing should be good with white color, advertising should be done to
promote the product, also the chain between the retailers & the distributors should be
maintained.
5
INDEX
1 Introduction
2 Industry Profile
3 Company Profile
4 Product profile
5 Organization Structure
6 Theoretical Background
7 Research Methodology
9 Findings
10 Conclusion
11 Recommendation
12 Questionnaire
13 Bibliography
6
7
Background of the Study:
Companies and Marketing Managers often carry out study of Specific Problems and
opportunities in the market so as to analyze the performance of their Brands and respective
Products in the market. This can be done by carting out Market survey, Product Preference
Test and Advertisement Evaluation.
In this case, as per company suggestion Market surveys were carried out to understand the
Customer and Retailers preferences for the Milk and Milk Product. Akluj Market was divided
into 13 brief Area and asked us to carry out a detailed survey about Milk product brands sold
most area wise, Availability of Shivamrut Products and Suggestion if any given by the retailers
to improve service. Doing so researchers as marketing students got a brief exposure to the
functioning of small and large scale Retailers, Distributors and Measuring of product
performance in an Rural market.
8
INDUSTRY PROFILE:
9
The World Dairy Situation – 2008-09:
The strongest growth would be in Asia, notably in China and India. Milk production is
projected at 36 million tonnes in China and 94.60 million tonnes in India. India would continue
to be the largest milk producer, followed by the US, with projected production of 82.60 million
tonnes
The following graph represents world milk production (fig in million Tonnes)
700
600
500
400
548
554
543
533
517
521
509
501
491
484
477
300
200
100
102
102
104
100
94
97
99
83
84
86
89
0
1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008-
99 2000 01 02 03 04 05 06 07 08 09
Major changes are not expected in dairy products basket. World butter production increased for
two years, in 2005 and 2006 and then declined in 2007-08. It is expected to decline again in
2008-09. Industrial cheese production is continuing to grow. The production of condensed and
evaporated milks is subject to a declining trend for many years in the developed market. It has
been replaced by many other dairy products, especially liquid milks of UHT type, coffee cream
and coffee whitener including some of the non-dairy origin.
Production of milk powders increased last year and is expected to continue in the year 2008-
10
09. However, this growth is mainly restricted to whole milk powder (WMP) and semi-
skimmed milk powder, while skim milk powder (SMP) production is on the way down. The
reason in favour of WMP was the ongoing fat surplus problem in EU, together with the
reduction of butter intervention price. This trend would continue to remain despite the price
increase for butter. For SMP, despite high market price, production is likely to decline in 2008-
09. The reasons are that milk production would grow only modestly and in most major
producing areas of the world, less skim milk would be available for drying, because of the on-
going growth of the other product markets. In EU, the subsidy for processing skim milk into
casein was set at zero, in October 2008, which dampened the production of SMP. This is good
news for Indian dairying, which has created a large capacity for SMP production.
World trade in dairy products after a period of relative stagnation, started recovery in
the second half of 2007-08 and it continued in the first half of 2008-09. The recovery is due to
prosperity resulting from economic demand.
Export of butter and butter-oil recovered in 2007-08 and this recovery continued in
early 2008-09. The total volume of the world trade in cheese has accelerated and this trend is
likely to continue in the year 2009. The world trade in WMP continued to increase in the first
half of 2008-09, but it seems that though it would continue in the second half also, it would be
at a slower pace. The reason is that the supply is short and countries like New Zealand, US and
Argentina have cleared their stocks. The biggest exporter of the WMP in 2007-08 was the New
Zealand with export volume of more than 0.7 million tonnes, which is an all-time record. EU
was the second major exporter, but with quantities exported, reduced considerably. The
outlook for the trade in dairy commodities for 2008-09 appears bright. However, since the new
market equilibrium, in respect of prices has to be found, the question is whether international
trade in dairy products will continue its growth in 2008-09 at the same momentum as in
previous years. Because of the price situation in 2008-09, one may ask whether demand can
follow the expected trends, but it would be premature to expect stagnation in the trade. In
established markets, the potential for demand to reduce slightly can release the additional
supplies, which are needed to maintain the growth of trade. The price rise in 2007 and 2008
was unprecedented and therefore no experience is available on which to base conclusions as to
what might happen in future! Nevertheless, it can be assumed that much would however
11
depend on the farm policies of the big players. These policies are mainly oriented towards
supporting their protected domestic markets and not, with the exception of few, aiming at the
new opportunities which are offered by the growing demand of milk and its product by the
world's population and its growing purchasing power.
Co – Operative Unions:
12
Backward integration of the process led the cooperatives to advances in animal husbandry and
veterinary practice.
• More than 900 village cooperatives have created jobs for people in their own villages
and that too without disturbing the socio-agro-system and thereby the exodus from the
rural areas has been arrested to a great extent.
• The yearly elections of the management committee and its chairman, by the members,
are making the participants aware of their rights and educating them about the
democratic process.
• Perpetuating the voluntary mix of the various ethnic and social groups twice-a-day for
common causes and mutual betterment has resulted in eroding many social inequalities.
The rich and the poor, the elite and the ordinary come together to cooperate for a
common cause.
• Live exposure to various modern technologies and their application in day-to-day life
has not only made them aware of these developments but also made it easier for them
to adopt these very processes for their own betterment. One might wonder whether the
farmer who knows almost everything about impregnating a cow or buffalo, is also
equally aware of the process in the humans and works towards planning it.
• The income from milk has contributed to their household economy. Besides, women,
who are the major participants, now have a say in the home economy.
This income is helping these people not only to liberate themselves from the stronghold
of poverty but also to elevate their social status. The system succeeded mainly because it
provides an assured market at remunerative prices for producers' milk besides acting as a
channel to market the production enhancement package. What's more, it does not disturb the
agro-system of the farmers. It also enables the consumer an access to high quality milk and
milk products. Contrary to the traditional system, when the profit of the business was cornered
by the middlemen, the system ensured that the profit goes to the participants for their socio-
economic upliftment and common good.
• Produce an appropriate blend of the policy makers’ farmers’ board of management and
the professionals: each group appreciating its roles and limitations.
13
• Bring at the command of the rural milk producers the best of the technology and
harness its fruit for betterment.
• Provide a support system to the milk producers without disturbing their agro-economic
systems.
• Plough back the profits, by prudent use of men, material and machines, in the rural
sector for the common good and betterment of the member producers.
• Even though, growing with time and on scale, it has remained with the smallest
producer members. In that sense, Cooperative Movement is an example par excellence,
of an intervention for rural change.
Recently the Indian cooperative movement got a much needed facelift. With
competition snapping at its heels, the sector which has been governed by arcane laws until the
recent past will see a special provision inserted in the Companies Act, 1956. All the
cooperative unions will be re-christened co-operative companies; they will come under the
purview of the registrar of companies, instead of the registrar of cooperatives. While they will
have to adhere by the audit procedures like any corporate, they will differ from ordinary
companies in many ways. Not everyone can join a cooperative. Only users can enroll as
members at a fixed membership fee. Quantum of business and not equity capital will see an
election to the board. And there will be flexibility to raise capital from members and outside.
Dairy Cooperatives account for the major share of processed liquid milk marketed in the
country. Milk is processed and marketed by 170 Milk Producers' Cooperative Unions, which
federate into 15 State Cooperative Milk Marketing Federations. The Dairy Board's
programmes and activities seek to strengthen the functioning of Dairy Cooperatives, as
producer-owned and controlled organizations. NDDB supports the development of dairy
Cooperatives by providing them financial assistance and technical expertise, ensuring a better
future for India's farmers.
Over the years, brands created by cooperatives have become synonymous with quality
and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan).
Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned
customer confidence.
14
Some of the major Dairy Cooperative Federations include:
15
• Is owned by nearly 12 million farmer members.
The National Dairy Development Board was created to promote, finance and support producer-
owned and controlled organizations. NDDB's programme and activities seek to strengthen
farmer cooperatives and support national policies that are favorable to the growth of such
institutions. Fundamental to NDDB's efforts are cooperative principles and the Anand Pattern
of Cooperation. A commitment to help rural producers help themselves has guided the Dairy
Board's work for more than 30 years. This commitment has been rewarded with achievements
made by cooperative dairies in milk production, employment generation, and per capita
availability of milk, foreign exchange savings and increased farmer incomes.
The National Dairy Development Board (NDDB) has replaced exploitation with
empowerment, convention with modernity, stagnation with growth and transformed dairying
into an instrument for the development of Indian farmers. The National Dairy Development
Board was created in 1964 in response to the Prime Minister Lal Bahadur Shastri's call to
"transplant the spirit of Anand in many other places". He wanted the Anand model of dairy
development - with institutions owned by rural producers, which were sensitive to their needs
and responsive to their demands - replicated in other parts of the country.
16
The above map show’s the various milk and milk products industries location in maharashtra.
17
COMPANY PROFILE
18
SHIVAMRUT Co-op Milk Producers Union was established on 27th January, 1976
under the Co-operative Societies Act. Initially five Talukas from Solapur District namely
Malshiras, Sangola, Pandharpur, Mangalwedha, & Karmala were brought under the operational
area of this sangh. Presently the activities of this sangh are mainly concentrated within
Malshiras taluka having 110 villages. Due to effective implementation of this program, income
generated from Dairy business tuned to Rs.100 Crores annually in this area.
Location:
The Shivamrut milk union is situated at village Vijaynagar, near Akluj. It is 165 km
from Pune. It is a co-operative dairy founded by Mr. Shankarrao Mohite-Patil in 1976.
The total area under processing plant is 13 acres. The plant capacity is 3,00,000 liters.
19
The major milk processing is the packaging of pasteurized and homogenized milk in
pouches. Also, there is manufacture of milk products like Ghee, Butter, Cheddar Cheese,
Processed Cheese, Sterilized Flavoured Milk, Curd, Shrikhand, Amrakhand, Lassi, Pedha,
Burfi, Buttermilk, Gulab Jamun, etc.
Goal Statement:
Objective of Shivamrut:
1. To organize & arrange the activity of milk procurement from producers to the sangh.
2. To process milk by Homogenization & Pasteurization in a highly sanitary condition.
3. To find assured & remunerative market for milk & milk products.
4. To provide veterinary & breeding services by undertaking programs with the use of
high quality germ plasma.
5. To perform a role of catalyst in the process of securing financial inputs & purchasing
dairy animals for the beneficiaries in the areas.
6. To make available medicinal & biological inputs for the dairy animals in the area.
7. To undertake production & supply of nutritious & balanced cattle feed.
8. To work as an agency for insuring the dairy cattle & for perusing the insurance
settlement claim of cattle owners, with the insurance companies.
9. To perform a function of disseminating modem technical know how to the dairy
farmers in the area by organizing extension & training programs regularly.
Share Capital:
Initially the share capital of the Shivamrut Sangh was Rs.51,000/-presently this has
gone up to Rs.14,85,13,000/-
Sales Turnover:
20
• Average Rs-15, 00,000/month sales of bi-products.
Board of Directors:
Name Designation
Shri. R. V. Mohite – Patil Chairman
Shri. B. G. Salunke Vice-Chairman
Shri. D. R. Mohite – Patil Director
Shri. D. R. Bhilare Director
Shri. H. D. Sool Director
Shri. B. G. Bhosale Director
Shri. N. Y. Jadhav Director
Shri. B. A. Patil Director
Shri. M. P. Patale Director
Smt. H.P. Patil Director
Smt. S. D. Bhosale Director
Smt. V. M. Jadhav Director
Smt. U. K. Kenjale Director
Smt. S. K. Mane Director
Smt. K. B. Patil Director
Shri. D. L. Inamdar Director
Shri. N. Y. Kale Director
Smt. R. A. Bhujbal Director
Shri. H. B. Dhobale Director
Shri. D. A. Avtade Director
Smt. S. M. Inamke Director
Shri. S. V. Kulkarni M.D
Branches:
21
APRIL-08 71.26
MAY-08 72.51
JUNE-08 72.21
JULY-08 72.85
AUGUST-08 72.92
SEPTEMBER-08 69.39
OCTOBER-08 73.63
NOVEMBER-08 73.71
DECEMBER-08 74.90
JANUARY-09 75.95
FEBRUARY-09 74.64
MARCH-09 74.22
Graphical Presentation:
78 ANNUAL PROCUREMENT OF
MILK (IN LAKHS)
76
74
72
70
68
66
MARCH
OCT
DEC
MAY
JULY
NOV
APRIL
AUG
FEB
JUNE
SEPT
JAN
22
SOLAPUR 26,65,882
AKLUJ 54,63,722
Graphical Presentation:
6000000
5000000
4000000
ANNUAL SALESOF PACKING
MILK (in Lakhs)
3000000
2000000
INTERNATIONAL STANDARDS
1000000
0
NANDED
PUNE
SOLAPUR
LATUR
AKLUJ
VASHI
International Standards:
The Union has met & achieved the ISO-9001 (Quality Management System) HACCP
(Food Safety Audit) & ISO-14001 (Environment Management System) Certifications & is
striving to meet the other International Standards.
The Union is the first to obtain these Certifications together in the state.
23
Raw Material Suppliers:
Affiliated Societies:
It is noteworthy to mention that, two member societies have won the prestigious awards
of State Govt. for efficient management continuously in 1984-85 & 1985-86.Initially only five
milk procurement societies were in operation in Malshiras Taluka, however this number has
raised to 407 primary societies which are involved in milk procurement & collection of each
society on an average 600 liters per day.
Social Commitment:
Supporting Rural Education by aiding school, Erecting public gardens, Bus shelters,
Aiding Hospitals, Promoting Rain water harvesting, Motivating people through active
participation in Gram Swachchhata Aabhiyan, Helping Drought affected farmers by supplying
water & fodder.
Generously Donating for relief funds at the time of disaster & natural calamities like
earthquake, Floods, Tsunami etc shows social commitment of Shivamrut Sangh.
24
Competitors of Shivamrut:
1. GOVIND
2. SONAI
3. LOKMANGAL
4. GOKUL
5. HUTATMA
6. WARANA
7. CHITALE
8. GOPAL
9. AMUL
10. KRUSHNAI
11. RAJHANS
12. DUDH PANDHARI
Ice Factory:
Ice is an essential commodity required for procurement of milk, to retain its quality in
initial stages Sangh used to procure this commodity from far place like Sangli, Phaltan,
Pandharpur, Solapur, etc. This resulted in escalating cost of milk procurement of milk.
Ultimately Sangh took a decision to install its own Ice Factory which has provided to be a most
profitable event. Financial assistance was obtained from N.C.D.C. New Delhi & Government
of Maharashtra & an Ice Factory of 10 M.T. capacity per day with a capital structure of 11.25
Lakh, which commenced production in April, 1982. As even this production is inadequate
considering the ever increasing demand of Ice, Sangh proposes to undertake expansion
program of 20 tines capacity per day Ice Plant.
25
26
PRODUCT PROFILE
A) Ghee:
B) Shrikhand:
• Shrikhand is an age old tradition product popular in
western India.
• It is a fermented product containing useful lactic acid
bacteria and is made by mixing concentrate curd
(CHAKKA) with sugar condiments, fruits, nuts etc.
• Shrikhand is available in Badam, Pista, and Kesar, Elaichi.
It is a product having nutritional advantage of fermented
milk product and is rich in milk protein.
• Available in 100gm. 250 gm, and, 500gms in plastic cups.
C) Amrakhand:
27
• The product is made from concentrated curd sugar and alphanso mango
pulp.
• The product is fermented product having
nutritional advantages and distinct flavour
due to use of Alphanso mango.
• Available in 100gms, 200gms, 500gms, Plastic cups.
D) Lassi:
• It is a popular Indian fermented drink similar to drinking
yoghurt. The product is made from fresh cow milk by
using lactic acid bacteria and mixing sugar. It is then
pasteurized, homogenized and packed in pouches using
form fill seal machine.
• Available in poly packs.
E) Table Butter:
• Butter is now a days commonly used in the breakfast with bread and many more things
• Butter is generally used in the restaurants for the different recipes like Pav Bhaji,
Soups , curries and cookies
• Butter is available in 100gm, 500gm, packets
• Butter is prepared by both by milk i.e. Cow and buffalo
28
F) Toned Milk:
• Toned milk is product which great demand in the
metros.
• Milk has good nutritive value and high shelf life.
• In this different tetra packs are available.
• The consumption of Toned milk is increased day by
day.
G) Cheese:
• Cheese is the innovative product of Shivamrut Dairy
• Cheese was previously not consumed by the Indian population due to unawareness but
now people more familiar with cheese and demand for the cheese is increasing.
• Shivamrut cheese is well processed quality cheese and has great nutritive value.
• It is available in 100,200,500 Gms polypacks.
H) Sterilized Milk:
29
30
Organisation Structure:
Organization structure of Shivamrut Dairy (Co-Operative)
BOARD OF
DIRECTORS
CHAIRMAN
MANAGING
DIRECTOR
PERSONNEL
DAIRY FINANCE MARKETING SECRETARY
MANAGER MANAGER MANAGER
MANAGER
PROCUREMENT
MANAGER
QUALITY CONTROL
R &D OFFICER
CHEMIST CHEMIST
LAB.TECHNICIAN LAB.TECHNICIAN
LAB.TECHNICIAN LAB.TECHNICIAN
31
32
MARKET POTENTIAL
MARKET POTENTIAL:
Decisions related to products and services - where to offer them, how to set revenue
targets for them, how much to spend in support of them - all start with a realistic, accurate and
ZIP Code, or any other defined trade area. Businesses and other organizations use Market
Potential data to make decisions about where to offer products and services.
in a particular market segment and open to all sellers of goods or services during a stated future
period.
Thus, a market potential indicates how much of a particular product can be sold to a
particular market segment over some future period, assuming the application of appropriate
marketing methods.
Sales potential:
a particular market segment and open to a specified company selling a good or service during a
33
stated future period. Thus, sales potential represents sales opportunities available to a particular
manufacturer, while market potential indicates sales opportunities available to entire industry.
different than simply taking the difference between Total Potential and your current market
share.
maintaining a presence where you're strong and investing heavily where opportunity is greatest
The best way to establish revenue goals and sales quotas for products, territories or
stores/branches is to base them on the true consumer demand/market potential within the area.
Sales Forecast:-
A sales forecasting is an estimate of sales in physical units in a future period under a
particular marketing program and assumed set of economic and other factors outside the unit
for an entire product line. It may be for a manufacturer’s entire marketing area or for any sub-
division of it. Such forecasts are short term or operating it is important to the sales executive.
34
ANALYZING THE MARKET POTENTIAL
Market Identification:-
The first step in analyzing a product’s market potential is to identify its market. Market
identification required finding out
Who buys the product?
Who use it?
Who are the prospective buyers and users?
Some companies find answer to these questions in their internal records but most of the
companies especially those that use long marketing channels, in consumer- good marketing,
Buyers, user, and prospectus are identified and classified according to such characteristics as
age, sex, income, and social class. In Industrial goods marketing, buyers, users, and prospectus
are identified and classified by size of firm, geographical location, type of industry and the
like.
Market identification studies reveal the characteristics that differentiate the market
segments making up the product’s market potential. market identification studies provides, as a
side result, customer data on such factors as purchase frequency, searching time expended unit
of purchase, and seasonal buying habits. When assembled and analyzed, these data help in
estimating market potential.
Market Motivation:-
The second step in analyzing market potential is to detect the reasons why customers buy
the product and the reasons why potential customers might buy it. Market motivation studies
answer twin questions: why do people buy? & why don’t buy?
The answer helps not only in estimating market potential but assist the sales executive to
increase the effectiveness of promotional programs.
Motivation research techniques vary, but the most widely used are the projective
techniques, in which respondents projects themselves, their attitudes interests and opinions into
interpretation of special materials presented by the researcher. Analysis of results by trained
specialist lays bare what goes on in buyer’s minds, including, importantly, the real reasons for
35
buying or not buying the product. Most motivation studies are directed towards explaining the
buying behaviour of ultimate consumers rather than industrial users.
Information from motivation studies helps not only in estimating a product’s market
potential but also assists in deciding
1. How best to present the product in sales talks
2. The relative effectiveness of different selling appeals
3. The relative appropriateness of various promotional methods
Third Step is to analyze the market potential. Market potential can not be analyze
directly, so analysis make use of market factors (Market factor is a market feature or
characteristics related to the product’s demand) using market factor for analyzing market
potential is a two step process
1. Select the market factor associated with the product’s demand
2. Eliminate those market segments that do not contain prospective buyers of the product
Market Potential data helps companies to understand, predict, and influence consumer
behavior by providing insight into areas with the highest growth potential. This allows you to
make informed decisions about products and services based on the latest trends and consumer
demand.
36
RETAILING
Introduction
Retailing consist of the activities involved in selling goods and services to ultimate consumer
for personal use. Thus, a retail sale is one in which the buyer is an ultimate consumer, as
opposed to business or institutional purchaser.
The term retailing has been derived from old French word ‘retailing which means ‘a piece of
‘or ‘cut-up”. This means breaking of large quantity in small pieces. This is exactly what is
done in retailing. In retailing large amount of products are acquired by the retailer, the same is
divided into smaller amounts for selling into smaller amounts for selling it to the individual
consumer for his consumption.
Definition:-
Different definition of retailing indicates nature of retailing indicates nature of retailing
activities. Following are some the definition of retailing.
“Retailing is concerned with sale of goods and services to the consumer for their use.”
“Retailing is the link in the distribution system, which makes goods and services available to
the consumer.”
“Retailing is the intermediate step between the consumer and the manufacturer.”
Thus, it can be seen that retail transaction are different from wholesale transaction. In
retail, goods are sold to the ultimate consumer who purchases the same for his own
consumption. Further characteristics like buying motives, discounts, quantity of purchase,
stock requirement and price difference differentiate retail transition from wholesale transaction.
37
FUNCTION OF RETAILING
RETAILERS ARE UNDERTAKEN BUSINESS ACTIVIES or perform function that
increase the value of the products and service they sell to consumers. These functions are:
1. Providing an assortment of products and services.
2. Breaking bulk.
3. Holding inventory.
4. Providing services.
1. Providing Assortment:-
supermarkets typically carry 15000 diff. Items made by over 500 companies. Offering an
assortment enables customers to choose from a wide selection of brands, designs, sizes, colors
and prices in one location. Manufacturers specialize in producing specific types of products.
For e.g. Kellogg makes breakfast cereals. If each of these manufacturers had its own stores that
only sold its own products, consumers would have to go many different stores to buy groceries
to prepare a single meal.
2. Breaking Bulk:-
To reduce transportation costs, manufacturers had its own products, consumers would
have to go to many different stores to buy groceries to prepare a single meal.
3. Holding Inventory:-
A major function of retailer to keep inventory so that products will be available when
consumers required.
4. Providing Service:-
Retailers provide Service for customers to buy and use products will be available when
consumers required. Retailers provide services for customers to buy and use products. E.g. they
offer credit to customers can have a product now and pay for it later.
In summery by providing assortments, making bulk, holding inventory and providing
services, retailers increase the value of consumer receive from their products and services.
Thus retailing is the set of business activity that adds values to the products and sold to the
38
consumer for their personal or family use. Often people think of retailing only as sale of
products in haircut or home-delivered pizza. Not all retailing is done in stores.
TYPES OF RETAILERS
1. Super retailing:-
In this type of retailing we have to discuss two type of super markets as-
i) Conventional super market,
ii) Superstores and combination approach
The conventional super markets are large self service super markets, offering
considerable low prices. They offered groceries meat etc. But is such shop is the sell of non-
food items such as health, beauty, aids and general merchandise is limited. Superstores and
combination approach, along with the foodstuff, non-food merchandise such as flowers, health
and beauty aids, kitchen utensils, also the musical instrument available in the super market.
2. Brand retailers:-
The first thing you notice is that almost every product the shelves carry has the stores
brand name –ghee, mustard, bread even chocolates. Best example of such type of retailers at
Pune in Maharashtra hosiery.
39
3. Specilised Retailers:-
It concentrates on a limited number of complementary merchandise categories and
provides high level of service. The specialty segment focuses on narrow market segment or
niche. Due to that they can offer a better selection and sales expertise to the customers.
4. Franchise Retailers:-
It is contractual agreement in which Franchiser grants Franchisees the right to sell the
suppliers product in exchange for some type of consideration. The Franchiser may receive
percentage of Franchisee’s revenues in exchange for furnishing marketing professionals.
Besides and children are focus of many new Franchises like baby from USA which sales baby
furniture.
5. Discount Retailers:-
To understand the concept of Discount retailer first of all we have to understand what
Discount stores are. The Discount stores are those stores, which offer brand-name products at
lower prices. Generally they contain appliances, house ware, sport equipment etc.
6. Relationship Retailers:-
This type of retailing is concerned with the relationship with the customers. Here
retailers keep good relationship with the customers. So these types of retailers are called
relationship retailers.
40
NEED & SIGNIFICANCE OF THE STUDY
Managers are always curious to know about position of the Company’s Product in the
Markets which largely depends upon the company goodwill & Position of their Brand. Market
Potential survey can chart out the Market share of the company along with that of its
competitors. It helps the organization to find the Brands being purchased most by the
consumers along with the Retailer Stocking and selling preferences. Market Potential survey
helps to know the sales of Shivamrut Milk & Milk Products in its Local Area.
Market Potential survey helps Managers to know the newly entered Brand in the market & also
helps to know the competitors marketing strategy.
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42
RESEARCH METHODOLOGY
Every marketing research acts as an aid to decision making by providing valuable
information. The information provided by the research should justify the & money which
organization puts in research activity, research design plays an important role in collecting
useful information in cost effective manner.
For the study of customer behavior marketing research is a must, for this purpose
questionnaire is prepared for getting information from consumer & retailer.
Market research is defined as “the systematic and objective search for and analysis of
information relevant to the identification and solution of any problem in the field of
marketing”.
According to American Marketing Association (AMA), Market Research is defined as
“the systematic gathering, recording and analyzing of data about problems relating to the
marketing of goods and services”.
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Process of Research:
PROBLEM
IDENTIFICATION
DEFINE RESEARCH
OBJECTIVES
SOURCE OF DATA
RESEARCH DESIGN
PRIMARY
DATA
DATA COLLECTION
SECONDARY
DATA
DATA ANALYSIS
AND
INTERPRETATION
FINDINGS
SUGGESTIONS AND
RECOMENDATIONS
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Research design:
• Descriptive Research : -
Descriptive Research includes surveys and fact findings enquiries of different
kinds. The basic reason for carrying out descriptive research is to identify the cause of
something that is happening. For this instance, research was used in order to find out
whether Shivamrut Dairy’s market share differs between geographical regions and to
discover how many competitors Shivamrut Dairy have in the Akluj market.
Sampling method:-
Cluster sampling method: -
Sampling Plan
• Universe:
The population for the study was population in the region of Akluj & adjoining
areas.
• Sample size:
45
The sample size of the study is 120 respondents. It includes 75 milk & milk
products consumers & 45milk & milk products retailers/distributors.
• Sample media:
The respondents in the sample were contacted through personal conversation
with help of questionnaire. Questions were open ended as well as close ended.
A) PRIMARY DATA
For primary data collection, close-ended type of questionnaire was used first one for the
consumers & the other for the retailers.
1) close-ended questionnaire
In fixed question answer the respondent has to give answer out of the given fixed
options & in open-ended question respondent is free to give their views & suggestions.
The instruments used for primary data collection were: market survey which comprises
of two types-
1). Consumer survey.
2). Retailer survey.
POPULATION SIZE
Primary Data for Market Survey is as follows:-
Total No. of Retailers = 45
Total No. of Consumers = 100
Routes Covered = 13
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B) SECONDARY DATA
The aim of the secondary data was to get the basic idea of different Milk & Milk
Products & to gain the conceptual familiarity with the structure of dairy industry. The
secondary data is the one which has already been collected by someone else & which has
already been passed through the statistical process. It consists of the information collected from
commercial research work done before. This data is collected from Internet, Company’s
Brochure, Magazines & Annual Review Reports etc.
1. The main aim of the study was to find the distribution of Milk product
Brands in the given Area.
2. To know the retailer satisfaction level.
3. To know the consumer response to the quality of the product.
4. To know the competitors Position in Akluj market.
5. To collect the valuable suggestions of the retailers in terms of quality of
Product and service.
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Data Analysis Techniques:
The data thus collected from the Market survey has been analyzed as per
the research plan stated above.
Limitations:
The Limitations to the study are as follows:-
1. The Time Constraint was a major limitation to the study.
2. The information collected solely depends upon the respondents answers
and accuracy of information could vary.
3. Getting actual information from the respondents was difficult.
4. According to the sample size, the findings might only be suggestive and
not conclusive.
5. The survey was limitsd to Akluj & adjoining area.
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SCOPE OF THE STUDY
1) CONSUMER SURVEY:
The survey was conducted in Akluj. The total size of consumer survey was
100 respondents.
2) RETAILER SURVEY
The retailer survey was conducted to confirm & corroborate results of the
consumer survey. For the retailer survey the sample size was 45.The retailer’s
survey was also carried out in the Akluj & adjoining areas.
49
For the retailer survey questionnaire was prepared which was structured
& consisted of multiple choice questions etc. The questions were also asked in
depth to the retailers for collecting related data which was unstructured in nature.
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DATA ANALYSIS & DATA INTERPRETATION
The data collected was analyzed & presented by using Graphs & Charts etc. The
questions in the questionnaire were analyzed individually as it prepared in the questionnaire.
The graphical representation is done with an object to understand all analysis in a lucid
manner.
The analysis is totally depended upon the collected data in the study.
Separate presentation of the consumers & the retailers is done in the project.
CONSUMER SURVEY:
Students
Housewives 15%
35%
Servicemen
20%
Businessmen
30%
Interpretation
From the above graph, it is clear that 35% are Housewives, 30% are Businessmen, 20%
are Servicemen and 15% are Students.
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A-2) Income Wise Profile of Respondent:
60
50
40
30
20
10
0
Less than 2500 2501 To 5000 5001 To 10000 More than 10000
Interpretation
52
From the above graph, it is clear that 60% of the customers belong to income range of
5001 to 10000, 20% belongs to more than 10000, 12% belongs to income range of 2501 to
5000 and only 8% of the customers belongs to income range less than 2500.
35
30
25
20
15
10
0
0.5 litre 1-2 litre Above 2 litre
Interpretation
From the above graph, it is clear that 60% of the customers purchase in between 1-2
litres, 25% purchase more than 2 litres and only 15% of the customers purchase 0.5 litre.
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A-4) Profile of Respondent When They Purchase Milk:
Evening
20%
Morining
70%
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Interpretation
From the above graph, it is clear that 70% of the customers purchase in the
morning, 20% purchase in the evening and only 10% purchase both the times.
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Customer Prefernce for Milk
Govind
14%
Sahkar
Shivamrut 10%
61%
Gokul
8%
Amul
Other
4%
3%
Interpretation
From the above graph, it is clear that 61% of the customers prefer milk of
Shivamrut, 14% prefer Govind, 10% prefer Sahkar, 8% prefer Gokul, 4% prefer Amul and
only 3% of the customers prefer other milk brand.
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Reasons for the preference of milk
70
60
50
40 East
30 West
North
20
10
0
Quality Price Availability Brand name Packaging
Interpretation
From the above graph, it is clear that 65% of the customers prefer milk because of
its quality, 15% prefer Price, 10% prefer Availability, 7% prefer due to its Brand name, 3%
of the customers gave importance to the packaging.
Warna
62%
Shivamrut
13%
Chitale
Amul
Other 5%
2% 3%
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Interpretation
From the above graph, it is clear that 62% of the customers prefer milk products of
Warana, 15% prefer Govind, 13% prefer Shivamrut, 5% prefer Chitale, 3% prefer Amul
and only 2% of the customers prefer other milk products brand.
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Reasons for the preference of milk products
70
60
50
40
30
20
10
0
Quality Price Availability Packaging Brand name
Interpretation
From the above graph, it is clear that 68% of the customers prefer milk products
because of its quality, 12% prefer Price, 15% prefer Availability, 3% prefer due to its
Brand name, 2% of the customers gave importance to the packaging.
RETAILER SURVEY:
For the survey of consumer behavior it is also necessary to take the retailer
under consideration, because they are also consumer of the company. Shivamrut
Milk has Distribution Channel in which Distributors & the Retailers are involved.
For getting information from retailer & distributor, 45 respondents were taken for
survey. This information is used for taking important decisions.
MILK RESPONDENTS
CONSUMPTION
59
Good 27
Bad 6
Average 12
Total 45
30
25
20
15
10
0
Good Bad Average
EXPERIENCE RESPONDENTS
0 to 1 Yrs 3
1 to 5 Yrs 5
5 to 10 Yrs 13
10 to 15 yrs 18
15 to 20 Yrs 4
20 yrs and above 2
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Total 45
10 to 15 Yrs 5 to 10 Yrs
40% 29%
B-3) Profile of How Much Liters of Milk they sell per Day:
From the data collected it shows that the respondent sell 25-50ltr per day is
maximum. Very few respondents sell more than 150ltr daily.
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20
18
16
14
12
10
0
25-50 51-100 101-150 150 Above
From the survey it shows that Shivamrut Milk is stocked by most of the
retailers due to its quality & availability.
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Milk Brands Stocked by Retailers
Other
Amul
Shivamrut
Gokul
Sahkar
Govind
From the survey it shows that Warna Milk Products is stocked by most of
the retailers due to its quality & availability.
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WARANA 32
GOVIND 17
SHIVAMRUT 16
CHITALE 12
AMUL 8
OTHER 5
Other
Amul
Warana
Chitale
Consumer Company
Demand Schemes
B-6) Reasons 10%
32%
for milk
product Company
Margin
brands sold 9% Service
25%
most by
retailers:
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• Above graph shows the reasons for the Milk rpoduct brands sold most by
retailers un their respective areas.
• 32 % of retailers replied Consumer demand to be the most prominent
reason for selling of their respective milk product brands the most.
• 24 % stated good Company incentive as resons for selling of the particular
milk product brand the most.
• 25 % of Retailers rate company servie as the most important reason for
selling their particular milk product the most.
• However very few retailers (9%) rated margin as an important factor for
selling particular milk brands most.
• 10 % of rated Company schemes as important factor of selling most.
From the research it was observed that most of the retailers are
getting 35
Shivamrut Products easily. Only few retailers were not getting Shivamrut
products.
30
25
20
32
15
10
13
5
0 65
Yes No
B-8Retailer’s opinion about Shivamrut Milk & milk products distributor’s
services:-
It was observed that 40% retailers said that distribution service is average,
33% said it is good, 18 % retailers said that it is poor, only 9% retailers said
that it is Excellent.
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Sr. No. Options Retailers Percentage
No.
1 Poor 8 17.77
2 Average 18 40.00
3 Good 15 33.33
4 Excellent 4 8.89
Total 45 100
Poor
Average
18%
40%
Excellent
9%
Good
33%
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Sr. No. Option No. of retailers Percentage
1 Yes 34 75.55
2 No 11 24.44
35
30
25
20
15
10
0
Yes No
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Findings of the Consumer Survey:
On the basis of the data collected it was observed that more than 60% of
the consumers prefered Shivamrut Milk due to its satisfaction level with respect
to quality is good & more than 60% of the consumers prefered Warana Milk
products due its quality & availabilty. It was observed that most of the consumers
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prefer to purchase milk in the morining & quantity from 1-2 litres daily. There is
less awareness & availability about the Shivamrut Milk Product among the
people.
70
71
RECOMMENDATIONS
The Milk products market has reached Maturity stage in India large no. of Co-
operatives having a variety of product range has entered the market, thus the
Shivamrut as a Brand can sustain in the market by increasing Brand awareness
and Differentiation. This can be done as follows:-
PRODUCT PRICE
• Increase Product line. • Lowest Price structure
for local market.
• Improve Distribution
Channel for Milk • Increase margin for
Products. retailers.
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TARGET
MARKE
PLACE T PROMOTION
• Improve coverage. • Increase print
Advertisement.
• Increase no. of
Wholesalers. • Use print media
like Banners,
• Improve delivery Posters and
schedule Danglers
• Give schemes to
retailers for
promotion of
products
A. PRODUCT:
3. Improve product quality too by concentrating on taste and increase the no.
of flavors in existing products.
B. PRICE:
1. Maintain current Price structure as it can compete with the existing brands.
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2. Provide higher Margin to retailers this motivates them to promote
company’s Products as retailer recommendation is vital for improvement
of sale.
3. Lowest price structure in Akluj Market as the close markets can impact of
company goodwill with the retailers.
C. PLACE:
D. PROMOTION:
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1. Increase advertisement through print media like Local newspapers (Sakal,
Lokmat), Local magazines (Family doctor, Gruhashobika), Weekly
editorials.
2. Use Media like Banners, Poster, and Danglers outside retail outlets this
helps retailers to better promote and recommended company products.
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76
CONCLUSION
• The Market Potential for Shivamrut Milk is good but there is very less hammering
about Shivamrut Milk Products into the Customers mind.
• More than 60% of the Customers prefer Shivamrut Milk due to its quality.
• More than 60% of the Customers prefer Warana Milk Products due to its quality.
• Most of the Retailers stock Shivamrut Milk & Warana Milk Products due to Customers
demand, Company’s service & incentives.
• However from the survey it was found that small difference in the consumer purchase
preferences and Retailers selling preference of milk & milk product brands was largely
due to the varied degree of perception about the brand among them.
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A) Questionnaire
For Consumer.
Date: - _________
1) Occupation - ___________________________________________________.
78
2) Income -
B) Questionnaire
For Retailers
Date: _________
79
a) Good b) Average c) Bad
a) 0-1 Yrs b) 1-5 Yrs c) 5-10 Yrs d) 10-15 Yrs e) 15-20 Yrs f) 20 Yrs &
above
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7. Are Shivamrut Products easily available to you?
a) Yes b) No
8. Rate the service provided by Shivamrut distributor?
a) Poor b) Average
c) Good d) Excellent
9. Do you require the credit facility to keep Shivamrut Milk & Milk Product?
a) Yes b) No
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Bibliography
A. Contacts
1. Mr. S.V. Kulkarni
Managing Director,
Shivamrut Dudh Utpadak Sahkari Sangh, Akluj.
2. Mr. Anand Karhade
Marketing Officer,
Shivamrut Dudh Utpadak Sahkari Sangh, Akluj.
3. Mr. H.U Jadhav
Shivamrut Dudh Utpadak Sahkari Sangh, Akluj.
4. Mr. Tanaji Pawar
Shivamrut Dudh Utpadak Sahkari Sangh, Akluj.
B. Books
1) Prof. Kulkarni M. V: Marketing research (Text & Cases), 8th edition 2008,
Everest Publishing House, Pune, Maharashtra.
2) Kotler Philip: Kevin Keller, Marketing Management, 12th Edition 2007,
Pearson Publication House. New York.
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3) De Sukumar: Outlines of Dairy Technology, 20th Edition 2004, Oxford
University Press, Delhi.
C. Web sites
1) www.fao.org
2) www.indiadairy.com
3) www.google.co.in
4) www.wikipedia.com
5) www.shivamrut.com
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