PROJECT REPORT

On
“A STUDY OF DEMAND ANALYSIS OF SUDHA MILK”

FOR
THE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE
OF
“MASTER OF BUSINESS ADMINSTRATION”
FROM GGS IP UNIVERSITY
DELHI
BATCH: 2018-2020

SUBMITTED BY: SUBMITTED TO:

AMAN KUMAR PROF. BABITA BHATI

ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY,

GREATER NOIDA (UP) – 201306

1
2
 Supervisor Certificate

This is to certify that Mr. Aman Kumar a student of Master of Business

Administration, MBA 2018-20, Army Institute Management & Technology,
Greater Noida, has successfully completed his project under my supervision.

During this period, he worked on the project titled “A Study of Demand Analysis
of Sudha Milk” in partial fulfilment for the award of the degree of Master of
Business Administration of GGSIP University, Delhi.

To the best of my knowledge the project work done by the candidate has not been
submitted to any university for award of any degree. His performance and
conduct has been good.

(Signature)

Prof. Babita Bhati

AIMT-Gr. Noida
Date :

3
 Certificate of Originality

I, Mr. Aman Kumar, Roll No. 93118403918 of MBA 2018-20 Batch of Army
Institute of Management & Technology has undergone a Summer Internship in
Patna Dairy Project (SUDHA) for a duration of 8 weeks on a project title “A
Study of Demand Analysis of Sudha Milk”, hereby declare that this project is my
original piece of work.

Signature of the student:

Student Name: AMAN KUMAR
Date:

4
 ACKNOWLEDGEMENT

I want to show my sincere gratitude to all those who made this study possible.
First of all, I am thankful to the helpful staff and the faculty of Army Institute of
Management and Technology. Second, I would like to extend my sincere thanks
to my Industry Guide, Mrs. Vandana Kumari, for her untiring cooperation. One
of the most important tasks in every good study is its critical evaluation and
feedback which was performed by my faculty guide Prof. Babita Bhati. I am very
thankful to my Faculty as well as Industry guide for investing his precious time
to discuss and criticize this study in depth, and explained the meaning of different
concepts and how to think when it comes to problem discussions and theoretical
discussions. My sincere thanks go to my Institute and family, who supported and
encouraged me.

Mr. AMAN KUMAR

Course- MBA

5
 EXECUTIVE SUMMARY

The Bihar State Milk Co-Operative Federation Ltd (Patna Dairy Project) is
a dairy cooperative, established in 1983 as an enterprise of the Government of
Bihar, India. It markets its products under the label "Sudha Dairy". The co-
operative facilitates the procurement, processing, and marketing of dairy
products. The research was conducted to know the product demand of Sudha
Dairy and to figure out the factors affecting the demand of Sudha dairy products.
The data was collected using questionnaire from customers perspective as well
as retailer’s perspective.
During the training at Patna Dairy Project, Patna, the basic focus of training was
on study of demand analysis of Sudha milk. Under this project the researcher had
to find different players carrying on business of liquid milk in Patna and their
market share in the region.
The researcher found out that the demand of Sudha milk in Patna region is much
higher as compared to other brands. The main reasons for the high demand of the
milk are: i) Easy Availability
ii) Density of milk
iii) Brand image
iv) Taste & Price etc.

6
 TABLE OF CONTENT
Chapter Page No.

Chapter 1- Introduction 7
1.1- Industry Introduction
11
1.2- Company Introduction 23
1.3- Topic Introduction

Chapter 2- Objective of the Research undertaken 24

Chapter 3- Literature Review 25-27

Chapter 4- Hypothesis, if any -

Chapter 5- Research Methodology 28-29

Chapter 6- Data Analysis 30-42

Chapter 7- Result Discussion 43-44

Chapter 8- Conclusions & Recommendations 45-46

Bibliography 47

Appendices 48-50

7
 Chapter-1

1.1Introduction of The Dairy Industry

India has had 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 the most significant in terms of
employment generation, as well as income generation. In post-independence
India cooperative dairying has been one of our major successful stories having a
profound impact on socio-economic development of rural area. Agriculture and
animal husbandry are the two main supporters on which the entire structure of the
village life rests in India. Apart from land and irrigation, live stock is the largest
productive resource in the rural economy of India.
Milk and milk products, being the largest agricultural commodity contributing to
Rs. 1,50,000 crores to the country’s GDP annually, play a vital role in agricultural
economy. In India, dairying also provides sustenance to the millions of farmers
distributed over 5,50,000 villages constituting the bulk of rural people with an
annual income of less than 3,800 per family. Among food products demand for
milk increases relatively at higher rate as education makes people conscious of
the value of nutritious food. Milk constitutes the most important source of
nourishment for both vegetarian and non-vegetarian. According to the National
Sample Survey, expenditure on milk and milk products constituted seven percent
of the total expenditure in Urban area. According to the world Health
Organization’s recommendations, per capita milk requirement is 210 grams., but
India has crossed the requirement due to the greatest success of Operation Flood,
lies to in increasing the per capital availability of milk in India from only 132
grams per day in 1950-51 to 225 grams per day in 2004-2005.
The growth of Indian Dairy Industry during the last three decades has been
impressive, at more than 5% per annum; and in the 90's the country has
emerged as the largest producer of milk. This is not a small achievement when
we consider the fact that dairying in India is largely stringent that farmers in
general keep dairy animals in proportion to their free crop and are
available for family labour with little or no purchased inputs and a minimum
of marketed outputs. The existence of restrictive trade policy milk in the Diary
Industry and the emergence of Amul type cooperatives have changed the
dairy farming practices in the country. Farmers have gained the favourable
price for their milk and for their production. Which was essentially a self-reliant

8
one is which is now being transformed into a commercial proposition.
In India Milk production is dominated by small and marginal land-holding
farmers and by landless labourers who in aggregate own 70% of the
national milk animal herd. And as the crop production on 78% of the
agricultural land still depends on rain, which is prone to both drought and
floods, rendering agricultural income is very much uncertain for most of the
farmers. Dairying, as a subsidiary source of income and occupation, is real
relief to most of the farmers in the society. Usually one or two milk animals
enable the farmers to generate enough income to break the vicious
subsistence agricultural-debt cycle.

The Operation Flood which is the successful Indian dairy development

programmed has analysed that how food aid can be utilized as an investment
in building the type of institutional infrastructure that can bring about
national dairy development. Programs like this, with similar policy
orientations may prove to be appropriate to dairy development in India.

Patna was one of the milks shed identified under ‘Operation Flood - I’ (OF-1) for
implementation of the programme. A One hundred thousand litres per day
capacity Feeder Balancing Dairy (FBD) and 100 MT per day capacity cattle feed
plant (CFP) were set up under this programme.

A Corporation known as Bihar State Dairy Corporation was formed in the year
1972 for speedy and effective implementation of the Operation Flood programme
in the state. The Dairy Corporation was to develop the Dairy Cooperatives both
at the village level and milk shed level on `Anand Pattern’ and it was expected
that the milk shed level cooperative would take over the entire infrastructure
created in due course.

The Corporation positioned a multi-disciplinary Procurement & Inputs wing in

1975 after their recruitment and training. A Spear Head Team (SHT) was deputed
from National Dairy Development Board (NDDB) from the same year for helping
the Corporation in organising and developing the Cooperatives. Though the
progress in the initial years was encouraging, the programme, for obvious reasons
could not achieve the goals for which it was established.

Subsequently, the State Government felt it worthwhile to request the DAIRY

BOARD (NDDB) for taking over the infrastructure created on management basis.

9
The National Dairy Development Board (NDDB) took over the management of
the infrastructure with effect from 1st October 1981 under the banner of Patna
Dairy Project (PDP). Dr. Verghese Kurien was the Chairman of this organization
from 1981 to1988.

The NDDB immediately after taking over the project positioned an integrated
Spear Head Team to restructure the milk procurement activities and for
streamlining the working of the FBD and CFP. Under the management of NDDB
the project had not only made excellent progress but had been able to establish
the fact that the Cooperatives could function equally well in Bihar too and what
is essential is the proper atmosphere and guidance.

Along with the organisation of milk procurement activities and management of

both the plants on commercial lines, NDDB took special care to develop the
Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd. (VPDUSS), the milk shed
level Cooperative for taking over the project once the DAIRYBOARD withdraws
its management. NDDB handed over the arrangements of Patna Dairy Project
(PDP) to Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd (VPDUSS) with
effect from 1st July 1988.

10
1.2 COMPANY INTRODUCTION:

“Patna Dairy Project (PDP)” was started in 1st oct.1981 through the National
Dairy Development Board (NDDB). NDDB handed over the arrangements of
Patna Diary Project (PDP) To Vaishal patliputra Dugdh Utadak Sahkari
Sangh Ltd. With effect from 1st July 1988. The company is ISO-22000-2005 and
HACCP (IS-15000) certified by Indian Register Quality System (IRQS)
2013.Milk producing animals have been domesticated for thousands of years.
Initially, they were part of the subsistence farming that nomads engaged in. As
the community moved about the country, their animals accompanied them.
Protecting and feeding the animals were a big part of the symbiotic relationship
between the animals and the herders.

In the more recent past, people in agricultural societies owned dairy animals that
they milked for domestic and local (village) consumption. In this case the animals
were normally milked by hand and the herd size was quite small, so that all the
animals could be milked in less than an hour—about 10 per milker.

BACKGROUND:
Patna was one of the milks shed identified under ‘Operation Flood - I’ (OF-1) for
implementation of the programme. A One hundred thousand litres per day
capacity Feeder Balancing Dairy (FBD) and 100 MT per day capacity cattle feed
plant (CFP) were set up under this programme.

A Corporation known as Bihar State Dairy Corporation was formed in the year
1972 for speedy and effective implementation of the Operation Flood programme
in the state. The Dairy Corporation was to develop the Dairy Cooperatives both
at the village level and milk shed level on `Anand Pattern’ and it was expected
that the milk shed level cooperative would take over the entire infrastructure
created in due course.

The Corporation positioned a multi-disciplinary Procurement & Inputs wing in

1975 after their recruitment and training. A Spear Head Team (SHT) was deputed
from National Dairy Development Board (NDDB) from the same year for helping
11
the Corporation in organising and developing the Cooperatives. Though the
progress in the initial years was encouraging, the programme, for obvious reasons
could not achieve the goals for which it was established.

Subsequently, the State Government felt it worthwhile to request the DAIRY

BOARD (NDDB) for taking over the infrastructure created on management basis.
The National Dairy Development Board (NDDB) took over the management of
the infrastructure with effect from 1st October 1981 under the banner of Patna
Dairy Project (PDP). Dr. Verghese Kurien was the Chairman of this organization
from 1981 to1988.

Progress of Patna Dairy Project:

The NDDB immediately after taking over the project positioned an integrated
Spear Head Team to restructure the milk procurement activities and for
streamlining the working of the FBD and CFP. Under the management of NDDB
the project had not only made excellent progress but had been able to establish
the fact that the Cooperatives could function equally well in Bihar too and what
is essential is the proper atmosphere and guidance.

Along with the organisation of milk procurement activities and management of

both the plants on commercial lines, NDDB took special care to develop the
Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd. (VPDUSS), the milk shed
level Cooperative for taking over the project once the DAIRYBOARD withdraws
its management. NDDB handed over the arrangements of Patna Dairy Project
(PDP) to Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd (VPDUSS) with
effect from 1st July 1988.

PROGRESS UNDER VAISHAL PATLIPUTRA DUGDH

UTPADAK SAHKARI SANGH LTD (VPDUSS)

The major tasks before the Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd.
(VPDUSS) was to see that the excellent infrastructure developed by the National
Dairy Development Board (NDDB) is not only maintained but also to see that the
pace of development is not hampered. The Vaishal Patliputra Dugdh Utpadak
Sahkari Sangh Ltd. (VPDUSS) has been able to accomplish these tasks to a
greater extent. The Board of Directors consists of 12 elected Members from Milk
Producers and three exofficio members M D of Milk Union, MD Comfed and a

12
representative from NDDB. A Professional Sri Sudhir Kumar Singh is Managing
Director of Milk Union he is associated with the Organisation since 1981.The
capacity of FBD has been enhanced from one lakh litre per day to 2.5 lakh per
day and one lakh litre per day Dairy plant has been established at Hazipur . The
progress of the Project over the years has been remarkably successful. It has now
grown into one of the most successful Milk Union in the country.

Rural development & Women Empowerment

The Milk Union undertakes supportive activities of Milk Producers for income
and social security. Such as we are paying remunerative price of Milk. The rural
milk producers are paid around Rs One crore daily which comes around Rs 30
crore in a month. This amount adds in poverty alleviation of poor Farmers and
raises per capita income of Bihar. It caters their day to day expenses of family.
There are around 1.5 lakh families are benefitted under this program in five
Districts of Bihar.

There is different supportive program for Milk Producers.

• Underfarmers Induction Program they are being sent to different States such
as Gujrat, Punjab and Rajasthan for learning of different aspects of Cattle
rearing and Milk Production.
• We are providing Balanced Cattle feed for increase in Milk Production and
decrease in Production cost.
• Artificial Acumination programme for Breed improvement.
• Cattle Insurance Program.
• Vaccination for Animals.
• Clean Milk Production program.
• Fodder Development Program.
• Training program for Farmers, Management Comity and Artificial
Insemination for Animals.
• Cattle Purchase on Subsidy.
• Assistance in Installation of Biogas Plant.
Milk Union plough back about 80% of its revenue receipt as milk value and
incentive to the rural milk producers. In addition to that 565 Women Dairy Co-

13
Operatives are functioning exclusively by Women. Our Milk Union Chairperson
is Women which is first time in Bihar.
PRESENT STATUS

Milk Procurement:

There are at present 2490 numbers of functional Dairy Cooperative Societies

(DCS) in the areas of VPMU covering the districts of Patna, Vaishali, Nalanda,
Saran& shekhpura with a total membership of 151952. The daily average
procurement has reached up to 319460 litres during the year 2015-2016, It is
hoped that the project shall collect above 4.5 lakh litres of milk per day in
commencing year. There are 580 numbers of Women Cooperative Societies
exclusively managed and run by rural women folk. While the Union has a fairly
good number of functional societies, emphasis is being given to consolidate the
functioning of the primary societies by increasing the members participation. The
Cooperative Development (CD) Programme was also initiated from March 1991
with the assistance of NDDB.

Technical Inputs:

The Union, in addition to providing a ready and stable market for the rurally
produced milk at the door-step has been providing the inputs required for milk
production enhancement viz. Artificial Insemination (AI) with Frozen Semen,
Veterinary First Aid (VFA), Vaccination, supply of balanced feed, supply of
fodder seeds, treatment of paddy straw/wheat bhusa with Urea, supply of Urea
Molasses Block (UMB) etc on no profit no loss basis. The response from the milk
producers for all these inputs has been exceedingly encouraging and the Union is
in the process of extending these facilities to more and more societies and farmers.

Feeder Balancing Dairy:

The Feeder Balancing Dairy with a capacity to handle 2.5 lakhs litres per day
(LLPD), has facilities for manufacture of milk powder, butter, ghee, ice cream,
peda, paneer and Plain/Misti Dahi.,Lassi,Matha and kulfi.

The production and marketing of Table Butter under the brand name `SUDHA’
was introduced from 1st October 1993 and the response has been encouraging.

14
The marketing of Sudha brand of Ice Cream in Patna after test marketing in
August-September 1994, was formally launched from April 1995. The initial
response has been satisfactory. Efforts are on to increase the market share of
Sudha ice-cream.

The marketing of Sudha brand Plain / Misti Dahi in Patna was started in Oct -
Nov. 2001 and was formally launched from Nov. 2001. The initial response for
this product too has been overwhelming.

The production of Sudha brand Lassi in Patna was started in April-May - 2003,
the product of matha started in March -2007 and Mango Lassi & Mango Dahi
started in March-10.

The production of Sudha brand kulfi was started in 2011.

Cattle Feed Plant:

The capacity of Cattle Feed Plant has been enhance from 100 mt to 150 mt per
days. The role of balanced feed is not only increasing milk production but also
sustaining the same by ensuring regular conception need not be over emphasized.
Realizing the same the Union has been making consistent efforts for popularizing
the consumption of balanced feed by the milk producers. Another 150 MT Cattle
feed plant is ready for production. In addition to that one 20 MT Bye Pass protein
plant is also coming up. with this feed, cost of production of milk will be reduced.
Animals will require One Kg feed in lieu of Two Kg which is our aim.

In addition to catering to the needs of the Dairy Cooperative Societies Cattle feed
is sold through dealers in rest of the state for better capacity utilisation of the
Plant. Further realising the importance of introduction of latest technologies in
this field, the production and sale of By Pass Protein feed was started from the
year 1989-90. The response for this feed too is encouraging.

Milk Marketing:

The marketing of liquid milk in sachets was introduced from the year 1981 itself.
However, initially the thrust was for organising the milk procurement activities
and to stabilise the same at reasonable level. Nevertheless, there was some natural
growth in the milk marketing over the years. However, for various reasons there
was some stagnation for few years in the quantity of milk marketed. With certain

15
modifications in the policy decisions and because of concerted efforts, the
quantum of milk being marketed is steadily growing. The average Milk
Marketing of Milk Union is 222000 ltr. per day.

Quality & Productivity Activities:

The Dairy Plant Management Programme (DPM) was introduced in the year 1992
followed by Quality Assurance Programme (QAP) in the year 1993 with the help
of NDDB. This resulted in bringing about a positive change leading to viability
of the project coupled with lowering of operational costs on one hand and
improved quality of products on the other. Consequent to the liberalisation and
globalisation of Indian economy in early 90’s it was felt that the organisation
should strive to make its total outlook, approach and systems of highest standards.
Accordingly, it was decided in the year 2001 that the organisation should go in
for ISO certification both in quality management system and food safety. This
process was successfully completed leading to ISO-22000:2005 certification by
Indian Register Quality System ( IRQS ) 2013.

The project has been honoured with “Best Productivity Performance”Award for
the four years 2000 - 2001, 2001-2002 , 2005-2006 & 2006-2007 by National
Productivity Council, New Delhi. The Chamber Commerce Association of Patna
has honoured VPMU ¼ Patna Dairy ½ by providing Vanijayakar Ratna”/
Bhamashah Samman in the month of January 2010.This is a rare honour by any
of the dairies in India. The international Business Council has honoured by
“Indira Ghandhi Excellence Award” in December-2013.

Major Achievements & Awards

• The Union received the “BEST PUBLIC UTILITY SERVICE AND

SYSTEM AWARD” for the year 1982.
• “Best productivity Performance Award” for 2000-01, 2001-02, 2005-06
and 2006-07 by National Productivity Council, New Delhi.
• Silver Medal for Standard Vanila and Chocolate Icecream in 2009 through
participation in Great Indian Icecream Competition.

16
 • The Chamber of Commerce Association of Patna hounered Patna Dairy
Project by “Vanijyakar Ratna / Bhamashah Samman” In January 2010.
• Silver Medal for Standard Vanila and Chocolate Icecream in 2010 through
participation in Great Indian Icecream Competition.
• “Indira Gandhi Excellence Award” in 2013 by International Business
council.
• Bronze Medal in great Indian Icecream Competition in 2013.
• Best Marketing Stratagy Award by Comfed , Patna in 2012.
• The Indian Solidarity Council, New Delhi Awarded Patna Dairy
Project “Rajiv Gandhi Samman Puraskar” in August 2015.
• Smt. Sharda Devi (Member Board of Director) was honoured as the “Dairy
Women of the year Award” February 2016 by Indian Dairy Association,
New Delhi.
• “Glory of India Award” by Global Achievers Foundation New Delhi on
10th June 2016.

ABOUT COMFED:

The Bihar State Milk Co-Operative Federation Ltd. (COMFED) was

established in 1983 as the implementing agency of Operational Flood (OF)
programme of dairy development on “Anand” pattern in Bihar. All the
operations of erstwhile Bihar State Dairy Corporation were handed over to
COMFED.

Till the end of (OF) programme in March 1997, there were five district level Milk
Producers' Cooperative Unions covering eighteen districts of Bihar. The dairy
development work continued and at present there are eight district level milk
unions covering thirty-three districts of Bihar. COMFED develops the districts
first in terms of dairy development coupled with capacity development of milk
producers to shoulder broader responsibilities and then hands over the entire
operations to the representatives democratically elected by the milk producers.

COMFED is serving the consumers of Jharkhand also and there are three dairies
at Jamshedpur, Ranchi and Bokaro. These dairies are serving a good number
of towns and cities of Jharkhand in Ranchi, East & West Singhbhoom,
Hazaribagh, Gumla, Khunti, Palamu, Lohardaga, Bokaro, Dhanbad,

17
Giridih etc. Sudha Milk and some products are now available in Delhi/NCR
region and Uttarakhand also apart from a number of towns and cities of U.P.
and West Bengal.

The Farmer's Training Centre at Patna, Barauni and Begusarai provides

training to the milk producers and society functionaries in various aspects of
dairying, clean milk production, society operation, artificial insemination etc.

18
1.2.1 ORGANIZATIONAL STRUCTURE:

19
1.2.2 PRODUCT DETAILS:

The Products that Patna Dairy Deals with are Liquid milk & milk powder, butter,
ghee, ice cream, peda, paneer and Plain/Misti Dahi, Lassi, Matha.

The marketing of Liquid milk in sachets was introduced from the year 1981 itself.

The production and marketing of Table Butter under the brand name ‘SUDHA”
was introduced from 1st October 1993 and the response has been encouraging.

The marketing of Sudha brand of Ice Cream in Patna after test marketing in
August – September 1994, was formally launched from April 1995. The Initial
response has been satisfactory. Efforts are on to increase the market share of
Sudha ice-cream.

The marketing of Sudha brand Plain/Misti Dahi in Patna was started in Oct.-
Nov. 2001 and was formally launched from Nov. 2001. The initial response for
this product too has been overwhelming.

The production of Sudha brand Lassi in Patna was started in April-May- 2003,
the product of matha started in March-2007 and Mango Lassi & Mango Dahi
started in March-10.

20
1.2.3 MILK:

Sl. no Product Name Pack Size Fat %

1 Sudha Gold (Full 200/500 ml pack 6

cream milk)
2 Sudha Healthy 200/500 ml pack 3
(Tonned milk)
3 Sudha Shakti 200/500 ml pack 4.5
(Standard milk)
4 Sudha Smart 200/500 ml pack 1.5

5 Cow Milk 200/500 ml pack 3.5

1.2.4 MILK PRODUCTS:

21
22
1.3 TOPIC INTRODUCTION:

Almost 5-7 other players have entered the market in the last 2 decades and are
given a rough time for Sudha milk
supply. This can be either because of the low profit margin provided to the dealers
or the absence of a proper promotion channel.
There is huge competition between each organization. Mostly corporate market
follows consumer satisfaction as the only source of profitability.
The modern market focuses on customer and hence organization work hard on
understanding their needs and providing the product at a reasonable price
accordingly. Most of the company tries to develop the technology to improve their
products and services to satisfy the customer.
Sudha is the producer of milk and various milk products and prepare a budget
estimating the various expenses and income for each financial year, based on
consumer satisfaction. The expenses and budgets are prepared for the next
financial year.
However, the estimated figure does not match with the actual figures always.
Milk procurement is based on consumers. It is almost impossible to predict the
exact figures and so deviations are bound to occur. Thus, it become necessary to
identify the consumers satisfaction and analysis them. Thus, this study focuses
on the calculation of the consumers and dealer’s satisfaction and the area of their
dissatisfaction and ascertaining the reasons for the same to increase the sale of
the Sudha milk and its product in the market.

23
 CHAPTER 2
OBJECTIVE OF THE RESEARCH UNDERTAKEN:

Primary Objective: - To study the product demand of Sudha Dairy.

Secondary Objective: -To study the factors affecting demand at Sudha Dairy.

24
 CHAPTER-3

LITERATURE REVIEW

CaiShou Song, Gu Xiao Min [1], “The Market Demand Analysis of the
Liquid Milk”. With the happen of sanlug milk powder incident in 2008,
China's food problems, especially infant milk, obtained the wide spread
attention. Also, for the necessaries that in our dairy life, such as pure milk,
yogurt and so on, its production enterprises also need to improve the quality of
their products. So, this is an opportunity for overall dairy industry. which is also
a challenge. This paper mainly focuses on the liquid milk of overall dairy
products demand. Based on the research of the liquid milk industry, we were to
explore the development of China's dairy products in recent years and to analyse
how much potential market demand for liquid milk. This report is selected
liquid milk sales from 2002 to 2011.According to these previous sales data; we
use time series analysis methods and the quantitative analysis for the main
factors which can affect their demand. Finally, we combined with least square
method for curve fitting to calculate the future market demand forecasting
model. And then to forecast the future demand of liquid milk, thereby
establishing the liquid milk market in China market demand analysis report. The
goal of this report is the study of the change of liquid milk market demand in
China since 2002. Thereby reflecting the developmental status of Chinese liquid
milk.

A.J. OSKAM and E. OSINGA [2], “Analysis of demand and supply in the
dairy sector in Netherlands”. This research on the demand for and supply of
milk in the Netherlands combines a detailed empirical analysis with a strong
emphasis on methodological aspects. The analysis forms a pilot study for part of
an EC dairy sector model. The demand and supply functions are derived from
theory. On the demand side, information from data has been combined with a
priori information. The methodology involved is discussed in detail. This
working method enables information from cross-section (or time series cross-
section) data to be combined with macro data, leading to a consistent result on
aggregate level. On the supply side, two concepts are used: a dynamic price
reaction and a total price. The very specific lagged price reaction of dairy
farmers is investigated, if they attune their production to a total price, which is
derived from the prices of milk, beef, calves and concentrates. Many hypotheses
25
about the supply function have been tested empirically. The very popular
Nerlove scheme should be rejected for the supply function of milk in the
Netherlands. The whole study, which incorporates also margins and margin
behaviour, gives several clear estimations and test results

Karl A. Fox [3], “The Analysis of Demand for Farm Products”. This
bulletin presents, in terms of simple diagrams, demand-supply structures for
several farm products. These diagrams have been found helpful in deciding
whether consumer demand equations for various products are statistically
measurable and, if so, whether single-equation or simultaneous-equation
methods are required. Basic problems of analysis of demand by both methods
are outlined, and many statistical demand equations for 1922-41 are presented
and discussed. The stability and reliability of some of these demand equations
during 1942-51 are examined.

Daniel. F. Liman [4], “Demand Forecasting for Perishable Commodities”. :

Inflight food sales have become an important revenue source for low cost
airlines where demand forecasting is play a critical role in profitability. By
creating a new and improved forecasting method, the research is aiming for
reduced waste and lost sales, thus will increase the business profitability.

R.J. Brodie R.G. Moffitt J.D. Gough, [5], “THE DEMAND FOR MILK:
AN ECONOMETRIC ANALYSIS OF THE NEW ZEALAND MARKET”.
This report presents the results of a preliminary econometric analysis of the
factors affecting town milk consumption in New Zealand. The study objectives
are: (1) to review overseas studies which have examined the demand for fluid
milk; (2) to specify and estimate quarterly and annual econometric models in
order to quantify the factors which determine demand; and (3) to investigate the
models' suitability for short-term and medium-term forecasting and policy
analysis. The study demonstrates that econometric analysis provides an
effective tool for quantifying the factors which determine the per capita
consumption of milk. The estimated mode.1~ show consumption is largely
determined by four factors. These are: (1) the previous period's consumption
level, (2) the real price of milk, (3) the proportion of young people in the
population, and (4) seasonal factors. The New Zealand market is very price

26
inelastic or unresponsive to price changes and is even more unresponsive than
the Australian market. Other factors such as disposable income and advertising
do not appear to have an important influence on milk consumption, but further
investigation is necessary to determine their exact effect. The estimated models
appear to be highly suitable for accurate short and medium-term forecasts. The
authors are confident that an extension of this analysis will lead to the
development of a valuable tool to be used by the industry to plan and co-
ordinate its marketing programme over the next decade.

Vimal kumar, Rajkumar sharma, Dr. Piyush Singhal, [6], “Demand

Forecasting of Dairy Products for Amul Warehouses using Neural
Network”. Demand forecasting is very intensive research area now a day as it
significantly affects the revenue growth of industries. In this paper, demand
forecasting of amul butter for “Aman warehouse private limited Agra” of
different cities has been presented using artificial neural network technology.
Supply chain consists of manufacture, warehouse and customer. Model of
network has been built up with last three years historical data. First input
variable is associated with population. Second and third input variables are
associated with no of restaurant, hotels, colleges and types of places (sub
parameter tourist, religious, historical, industrials) respectively. Output variable
is linked with demand. Result shows that demand prediction using neural
network in tune wise. He provided by Aman warehouse supply chain managers.

27
 CHAPTER-4

RESEARCH METHODOLOGY

Research Problem:
The research problem of this research basically revolved around the demand
analysis of the milk and milk products of the dairy industry. In a nutshell, the
problem of the research is the optimization of the dairy industry demand and
supply management to meet the future domestic requirements and remain
competitive in global markets. The present research study tried to find the actual
happenings, and accordingly analyse the mechanism for betterment in those
processes to create a win-win situation for all the stakeholders of the dairy supply
chain.

Data collection Techniques:

‘Data collection’ is a term used to describe a process of preparing and collecting
data. The purpose of data collection is to obtain information to solve a research
problem.

Primary Data Sources:

There were 13 Questions in the questionnaire prepared by the researcher. Primary
data was collected through a structured questionnaire for the retailers. The
researcher interviewed the respondents personally in order to increase the
accuracy of the data.

Secondary Data Sources:

Secondary data was collected through different websites, magazines, newspaper,
research journals etc.

For the research undertaken the data was collected using questionnaire from
customer perspective and retailer perspective which was intended to find out their

28
perception about the company which will allow us to determine the product
demand and factors affecting it. After analysing the data, we were able to find out
that the customers are happy with the quality of products of the Sudha dairy and
Sudha dairy has a strong brand image however retailers are not satisfied with the
Sudha dairy because of the following reasons:
• Credit facility not available.
• Low profit margins.
• No compensation for damaged products.
Population- All the retailer shops in Danapur region, Patna
Sample taken- 50 Retailer Shop Owners.
Data Collection Tool- Questionnaire
Sample Design- Convenience
Data Analytical Tool- Excel and Pie Chart
Type of Study – Descriptive

29
 CHAPTER-5
DATA ANALYSIS

Primary Objective: - To study the product demand of Sudha Dairy.

Table: Which company’s product demand is higher?
Response No of respondent

Sudha 21

Ashirvad 09

Raj 08

Gopad 12

Demand of Product

Gopad
24%
Sudha
42%

Raj
16%

Ashirvad
18%

Sudha Ashirvad Raj Gopad

Interpretation: The above table and graph indicate that Sudha’s demand is
higher in the market with 42%, Gopad’s demand is 24%, Raj’s demand is 16%
and Ashirvad’s demand is 18%.

30
Secondary Objective: -To study the factors affecting Retailer Demand at Sudha
Dairy.
Table: Why do you like to sell this dairy product in comparison to other dairy
products?
Response No of respondent

Customer Demand 20

Brand/Quality 12

Profit margin 08

Easy availability 10

Reson for selling that particular product

Easy availability, 10,

20%
Demand, 20, 40%

Profit margin, 8, 16%

Brand/Quality, 12,
24%

Demand Brand/Quality Profit margin Easy availability

Interpretation: The above table and graph indicate that 40% of the retailer sells
the product based on the Demand of the product, 24% are selling based on the
Brand image/Quality of the product, 16% are selling based on Profit margin given
by the company and 20% are selling because of the Easy availability of the
product.

31
Demand of Sudha milk is higher from customer which indicates higher customer
satisfaction.

# OTHER FINDINGS
(Sample size 50)

Table 5.1: Which dairy product do you sell?

Response No of respondent

Sudha 21

Ashirvad (ITC) 09

Raj 08

Gopad 10

All 02

Dairy product preference

All
Gopad 2%
20%

Sudha
51%
Raj
15%

Ashirvad
12%

Sudha Ashirvad Raj Gopad All

32
The above table and graph indicate that 42% of the retailers are selling Sudha
dairy product, 24% are selling Gopad dairy products, 18% are selling Ashirvad
dairy products while 16% retailers are selling Raj dairy products.

Table 5.2: What products are you dealing in?

Response No of respondent

Mattha 03

Ghee 05

Milk 18

Paneer 14

Curd 10

Products

Curd Mattha
Ghee
20% 6%
10%

Paneer Milk
28% 36%

Mattha Ghee Milk Paneer Curd

The above table and graph indicate that 36% of the retailers are dealing in Milk,
28% deals in Paneer, 20% deals in curd, 6% deals in Mattha while 10% retailers
deals in Ghee.

33
Table 5.3: Are you satisfied with the profit margin on Sudha dairy product?
Responses No of respondent

Highly satisfied 00

Satisfied 18

Neutral 03

Dissatisfied 23

Highly 06
dissatisfied

Satisfaction on profit margin

Highly satisfied
Highly Dissatisfied
12% 0%
Satisfied
36%

Dissatisfies
46% Neutral
6%

Highly satisfied Satisfied Neutral Dissatisfies Highly Dissatisfied

The above table and graph indicate that 50% of the retailers are Dissatisfied by
the profit margin they receive, 36% are Satisfied with the profit margin, 14% are
Highly dissatisfied by the profit margin they receive on the product.

34
Table 5.4: Does Sudha make you reach supply on time?
Responses No of respondent

Yes 20

No 30

Supply on time?

Yes
40%

No
60%

Yes No

The above table and graph indicate that 40% retailers agrees to have supply on
time from Sudha while 60% retailers says they never gets supplies on time.

Table 5.5: Do you find any problem in Sudha dairy products?

Responses No of respondent

35
 Yes 40

No 10

Problem in Sudha dairy product?

No
10%

Yes
90%

Yes No

The above table and graph indicates that 89% of the retailers find problem in the
Sudha dairy product while 11% of the retailer don’t find any problem in Sudha
dairy product.

Table 5.6: If yes, the problem is related to:

Responses No of respondent

Poor packaging 04

Irregular supply 11

36
 Leakage in packets 16

Credit facility not 19

available

Problem in sudha products

Poor packaging
8%
Credit facility not
Irregular supply
available
22%
38%

Leakage in packets
32%

Poor packaging Irregular supply Leakage in packets Credit facility not available

The above table and graph indicates that 38% of the retailers finds problem with
the non-availability of credits, 32% retailers finds Leakage in packets, 22%
retailers complains about the Irregular supply of the product while 8% of the
retailer have poor packaging problem.

Table 5.7: DO you have any leakage of milk problem in Sudha brand milk?
Responses No of respondent

Yes 49

No 01

37
 Leakage of milk?

No
2%

Yes
98%

Yes No

The above table and graph indicates that 98% of the retailers finds leakage
problem in Sudha milk while 2% of the retailers never found any leakage
problem.

Table 5.8: Does the company compensate for the leakage and spoiled milk
packages?
Responses No of respondent

Yes 00

No 50

38
 Compensation for spoiled milk packages?

Yes
0%

No
100%

Yes No

The above table and graph indicates that 100% of retailers said that they don’t get
compensation for the spoiled milk packages.

Table 5.9: Do we Fulfil the demand as per your expectation?

Responses No. of respondent

Highly satisfied 34

Satisfied 13

Neutral 02

Dissatisfied 01

Highly dissatisfied 00

39
 Demand Fulfilment
Highly dissatisfied
Neutral Dissatisfied 0%
4% 2%

Satisfied
26%

Highly satisfied
68%

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

The above table and graph indicate that 68% of the retailers are highly satisfied,
28% of the retailers are satisfied, 4% of the retailers are neutral, 2% of them are
dissatisfied with the demand fulfilment of the company’s product.

Table 5.10: Are your customer satisfied with Sudha milk and its products?
Responses No. of respondent

Yes 42

No 08

40
 Customer Satisfaction

No
16%

Yes
84%

Yes No

The above graph and table shows that 84% of the customer are satisfied with
Sudha milk and milk products where as 16% of the customer are not satisfied
with Sudha milk and milk products.

Table 5.11: What could be factors leading to customer satisfaction?

Responses No. of respondent

Availability 18

Density of milk 11

Price 01

Taste 08

Freshness 12

41
 Factors of satisfaction

Taste
Price 21%
3%
Availability
47%

Density of milk
29%

Availability Density of milk Price Taste Freshness

The above graph and table indicate that the factors leading to customer
satisfaction are 47% due to availability, 29% due to density of milk, 21% due to
taste, and 3% due to price.

42
 CHAPTER-6
RESULT DISCUSSION
FINDINGS:
• Sudha milk has captured majority of the market share of processed milk in
Patna.
• Customer prefer Sudha milk over other brand milk because of its
availability-47%, taste-21%, density of the milk-29% and price of the milk-
3%.
• Around 60% of the retailer are satisfied with the dairy and other 40% had
problem related to irregular supply, leakage in packet, or with the refund
policy of the company.
• Retailers had issues regarding credit facility- 38%, leakage in packets-
32%, Irregular supply-22%, and poor packaging-8%.
• Company has a very good supply chain but they need to manage them
efficiently as the retailers complained about delay in milk supply
sometimes.
• Sudha has a strong brand value and strong presence in the market.
• Among competitor the sale of Sudha milk and milk product is very high
and most of customer prefers Sudha’s product than other.
• Retailers are not getting credit facility from Sudha which forces them to go
for another brand milk.
• Most retailers are not satisfied with the profit margin they are getting form
the Sudha milk.
• Advertisement is not that high as compared to other brands.
• Company’s refund policy is not good as complained by the retailers.
• There’s a big communication gap between the retailer and the organization.
• No compensation on leakage of the milk or spoiled milk packets.
• Other brand milk is basically used in the tea shop as they give them the
credit facility.
• Price of other brand milk (for e.g.: - Ashirvad milk) is bit low than Sudha
milk.
• Demand for Sudha milk and milk products are very high as compared to
others due to several reasons like: Easy availability, Good supply chain,

43
 Brand awareness, Additional requirement fulfilment, customer satisfaction
etc.
• In order to maintain the demand of their products in the market, company
needs to communicate with their retailers so that the retailers could give
them the feedback from customers about their products and accordingly
make changes if required.

44
 CHAPTER-6
CONCLUSION & RECOMMENDATIONS:

This project was about the milk segment of Sudha Dairy which due to intense
competition from its competitors has a threat of losing its market share. So, in this
project different parameters on which the sale of Sudha depends are studied and
analysed from the distributor, retailer and consumers perspective. The outcome
of the project is that the parameters which make decision regarding the purchase
of milk are Price, Quality, Smell, Taste, Advertisement and Awareness. Milk market is
a totally unpredictable market and the organisation should be over-cautious of
any complaints that come into milk as it includes the sentiments of a mother for
her kid and she would not prefer to give anything to her kid for which she is not
100% satisfied. So, the company should take every step possible step to overcome
any problem which affects the sale of Sudha milk.

Sudha has been major suppliers of milk in Bihar in last 30 years and creates
consumer awareness about pouch milk and milk products in different milk market
in Bihar. Even today, Sudha is the sole flag bearer of quality pouch milk and milk
products in Bihar with rest of open space filled by local players. Patna dairy has
grown every moment since its birth and the process is still on.

The effective marketing strategies help the dairy reach maximum number of
retailers. Innovating and effective marketing is the most important aspect in the
increasing popularity of Sudha. Sudha has never compromised with its quality of
the products. All though the company is leading in the milk market in Bihar but
there are still areas which needs improvement. Sudha is doing good in Bihar and
with additional efforts and dedication they might lead the national market one
day.
Recommendations:
During the survey, some complain, and few suggestions came from consumers.
Those suggestion are related to all the tools of marketing mix i.e. product, price,
place and promotion. After analysing those complain, suggestion and data, we
got to know that some changes or modification are needed in various aspect of
Sudha milk. Some of those suggestions are listed below: -
• Improving the smell of milk.

45
• Company should increase the production and supply of flavoured milk for
those who don’t like the taste of the milk.
• Company should come out with a program to educate the consumer about
the benefits of processed or pasteurized milk. These types of program will
surely boost up the sale Sudha milk.
• During the survey, it was found that maximum people prefer Cow milk and
Shakti and few people prefer Sudha healthy. It is a case of cannibalization.
It is also found that Sudha booths do not keep good amount of Sudha
healthy. So, company should focus on healthy and should do promotion or
give discount to attract more customer and hence increase the sale of
healthy.
• Increase the number of booth and try to make Sudha available in general
stores also.
• Train the distributers and retailers to act generous as they, for a period, acts
as a face of the organization.
• Patna dairy should use famous personalities as their brand ambassador for
advertising their brand on a national level.
• There should be a panel which will monitor the complaint and suggestions
from the retailer and customer for a better functioning.
• Patna dairy should follow Competitive pricing strategy to remain
competitive and retaining customer.
• Sudha should sponsor for the socio-cultural activities organized in Bihar &
Jharkhand.

46
 CHAPTER-7
BIBLOGRAPHY

BOOKS:
KOTLER, P. & KELLER, K. 2011. Marketing Management 14th Edition, Upper
Saddle River, NJ, Prentice Hall.

• CaiShou Song, Gu Xiao Min [1], “The Market Demand Analysis of the
Liquid Milk”
• Liman F. Daniel, “Demand Forecasting for Perishable Commodities”.
• Zepp, G. A. and McAlexander, R. M. (1969). Predicting aggregate milk
production: An empirical study. American Journal of Agricultural
Economics 51: 642-649
• Wilson, R. R. and Thompson, R. G. (1967). Demand, supply and price in
the dairy sector. Journal of Farm Economics 49: 360-371.
• Karl A. Fox, “The Analysis of Demand for Farm Products”.
• Daniel. F. Liman, “Demand Forecasting for Perishable Commodities”.
• R.J. Brodie R.G. Moffitt J.D. Gough, “THE DEMAND FOR MILK:
• AN ECONOMETRIC ANALYSIS OF THE NEW ZEALAND
MARKET”.
• Vimal Kumar, Rajkumar Sharma, Dr. Piyush Singhal, “Demand
Forecasting of Dairy Products for Amul Warehouses using Neural
Network”.

WEBOLOGY:
• www.sudha.coop/
• www.patnadairy.org/
• www.slideshare.com
• www.wikipedia.org/

47
 APPENDICES
Questionnaire for retailer

1)Which dairy product do you sell?

a) Sudha
b) Ashirvad(ITC)
c) Mother Dairy
d) Gopad
e) All of the above
2)What products are you dealing in?
a) Mattha
b) Ghee
c) Milk
d) Paneer
e) Curd
f) All
3)In dairy product, which company product demand is higher?
a) Sudha
b) Ashirvad(ITC)
c) Mother Dairy
d)Gopad
4)Why do you like to sell the above stated dairy product in comparison to other
dairy products?

48
 a) Quality/Demand
b) Brand/Packaging
c) Price
d) Availability
5)Do you receive a good profit margin on Sudha dairy product?
a) Yes
b) No
6)Does Sudha make you reach supply on time?
a) Yes
b) No
7)Are your customer satisfied with Sudha milk and its products ?
a) Yes
b) No
8)If yes, the reason of satisfaction could be?
a) Availability
b) Density of milk
c) Price
d) Taste
e) Freshness
f) Hygiene
9)Do you find any problem in Sudha dairy product?
a) Yes
b) No
10)If yes, the problem is related to:
a) Poor Packaging
b) Irregular supply

49
 c) Leakage in packets
d) Credit facility not available
11)Do you have any leakage of milk problem in Sudha milk product?
a) Yes
b) No
12)If yes, does the company compensate for the leakage and spoiled milk
packages?
a) Yes
b) No
13) Do we fulfill the demand as per your expectation?
a) Highly satisfied
b) Satisfied
c) Normal
d) Dissatisfied
e) Highly Dissatisfied

50