A Study On Channel Members Satisfaction of Nandini Liquid Milk IN Mandya Milk Union Limited. (Manmul)

Study on Distribution Strategy of Nandini Milk In MANMUL
A STUDY ON CHANNEL MEMBERS SATISFACTION OF NANDINI LIQUID MILK IN MANDYA MILK UNION LIMITED. (MANMUL)
INTRODUCTION:
A channel member satisfaction is defined as the satisfaction towards their performance and services to both organization and customers. There are many definitions for customer satisfaction, But, All are converging on above meaning. In case of MANMUL, the liquid milk (Nandini) is distributed to customers by the one level channel. i.e. from producer to agents & from agents to customers. The prime channel members of MANMUL are Producer, Retailers, Parlors owners, Agentsetc . MANMUL includes 39 distribution routes constituted by both urban agents and rural agents, Totally 872 agents in 872 distribution centers and 2 milk parlors are maintained by MANMUL.
OBJECTIVES OF THE STUDY

The objectives of study on channel members satisfaction of Nandini liquid milk in MANMUL are
1) To know the levels of channel members at MANMUL. 2) To understand the channel members service to both MANMUL and other channel members. 3) To measure the effectiveness and evaluation of channel members performance in MANMUL..
Dept Of MBA ,Marketing
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PROJECT METHODOLOGY
The research to study channel members satisfaction of Nandini liquid milk in MANMUL includes primary data collection and secondary data collection methods.
1) Primary data collection

The primary data collection for the study on channel members satisfaction of Nandini liquid milk in MANMUL includes the following. (a) Direct observation in MANMUL (b) Questionnaire for channel members.
2) Secondary data collection

The secondary data collection for the study on channel members satisfaction in MANMUL includes the following methods. (a) Company profile 2011-11 (b) Annual reports of MANMUL 2010-11 (c) Magazines like NANDINI, PRAGATHI, REVOLUTION etc
SCOPE OF THE STUDY

The study on channel members satisfaction of Nandini liquid milk in MANMUL has following scopes(1) To understand the different ways of motivating channel members of Nandini liquid milk in MANMUL. (2) The study gives the information about special provisions and incentives given to channel members to increase the sales of milk. (3) The study gives the comprehensive picture of different strategies adopted by channel members of MANMUL to improve sales of milk.
Dept Of MBA ,Marketing Page 2
Study on Distribution Strategy of Nandini Milk In MANMUL (4) The study gives information about the method of selection of agents to sell Nandini liquid milk. (5) This study is helpful to understand what are all the basic qualities required for channel members of MANMUL to increase sales of milk. (6) This study is helpful to know about training programs provided to channel members by MANMUL to improve their knowledge to sell milk.
LIMITATIONS OF THE STUDY

The study on channel members satisfaction of Nandini liquid milk with reference to MANMUL has the following limitations. (1) The study period in MANMUL is limited to 8 weeks only. (2) The study on channel members satisfaction in MANMUL is limited only to Nandini liquid milk products. (3) The study and survey is limited to Mandya and near geographical area. (4) The study gives the distribution pattern of only Nandini liquid milk regarding with Mandya geographical area.
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EXECUTIVE SUMMARY
The Project entitled A STUDY ON CHANNEL MEMBERS SATISFACTION OF NANDINI LIQUID MILK conducted in MANMUL, Gejjalagere plant, Mandya Dist. This study has been undertaken with the objective of measuring the effectiveness and evaluation of channel members of Mandya milk union limited (MANMUL).
This study also serves as guideline for the respective organization. The data was collected from the channel members using structured questionnaire and from secondary sources. The data collected has been analyzed and interpreted using tables and graphs with suggestions.
From this study, I came to know the different methods of distribution of Nandini milk to both urban and rural agents and also from this study; I came to understand the comprehensive picture of different strategies taken by MANMUL to distribute the Nandini liquid milk.
The respondents were satisfied with the time management of delivery vehicles and also satisfied with the pricing and promotion strategies of the organization. And promotion strategy of the company. This study is limited only to Mandya due to time constraint. The sample size is limited to about 50 channel members.
While, conducting a survey to collect information from channel members, Iam coming to know that, Most of the agents are Illiterates. They were not even in the position of understanding the simple questions of questionnaire. And most of the respondents are not willing to answer.
Since, Nandini has a strong brand image; it would be beneficial for the company to leverage its brand name. This study concludes with a view of its channel members satisfaction and excellent time management technique while distribute milk to different levels.
This study has been conducted for academic purpose and it will be successful study only if the findings and suggestions are helpful to the organization under study.
INDUSTRIAL PROFILE
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1. INDUSTRIAL PROFILE
Information of Milk and Milk Industry:
The progress of mankind and civilization has, since history began, been closely alike with his diet. Even today the leading nation and nations capable of becoming strong are those, which can obtain food in abundance for their people. India is the highest milk producer in the entire globe. India is otherwise known as the Ocean of the global dairy industry, with great opportunities to the entrepreneurs globally. Anyone might want to capitalize on the largest and fastest growing milk and milk products' market. The dairy industry in India has been witnessing rapid growth. The liberalized economy provides more opportunities for MNCs and foreign investors to release the full potential of this industry. The main aim of the Indian dairy industry is only to better manage the national resources to enhance milk production and upgrade milk processing using innovative technologies.
Origin of the industry:

The term Market Milk refers to fluid whole milk that is sold to individuals usually for direct consumption. As a major enterprise, the market milk industry is of comparatively recent origin even in developed dairy countries such as U.S.A. Though ancient written records report milk as an important food, its processing and distribution as a separate commercial business did not develop in those countries until the concentration of population in the cities reached a high-level in the middle of the nineteenth century, however, market milk technology may be considered to have commenced in 1965, with the functioning of the central dairy of Aarey milk colony and milk product technology in 1956 with the establishment of AMUL Dairy Anand. GROWTH AND DEVELOPMENT OF THE INDUSTRY: Until the 1940, there was very little published information on the method of preparation and use of these products. The credit for the first publication on the subject goes to Dr. W.B.Davis, the first
Study on Distribution Strategy of Nandini Milk In MANMUL director of the industry research, Indian Diary research Institutes (now National), Bangalore. Within the span of these four decades since his book appeared, considerable research has been places in indigenous Dairy products.
PRESENT STATUS OF THE INDUSTRY: With unprecedented growth in milk production by over two and a half time in the also two decades to about 58.8 million tons in 1992, India has emerged as the largest milk producer in the world with an annual milk production of 76 million tones. Food processing industry ranks as the fifth largest industry in the country. Though the milk and milk products have 85% business in unrecognized sector, it is having only 7% growth per year. Today, over 275 dairy plants and 83 milk products factories in the co-operative, public and private sectors handle an estimated 12%-15% of the total milk produced. In most of the countries in the world, the proportion of milk delivered to the dairies is over 90%. The value of the output of the dairy products in the countrys food sector has increased from 5%-7% during the same period. CHANGING PATTERN OF THE INDUSTRY The demand for milk and milk products in the country is on the rise. The current trends indicated that 44% of the total population would be urban. This will definitely lead to an increase in consumption of dairy products. The domestic market for butter and ghee is growing at a healthy rate of over 10% per annum but the same may not be true in case of an international market. The production and export of butter has witnessed a major decline in some of the developed countries. Ice cream, a modern frozen dairy product, is relatively new addition in India. At present, the market reach of an ice cream may not be very large. But, the potential market is more than the ten times. That might be one of the reasons that a company like Unilever group has delivered into this segment to build their brands and capitalize its production in Indian market.
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COMPANY PROFILE
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2. COMPANY PROFILE
KARNATAKA COOPERATIVE MILK PRODUCERS' FEDERATION LIMITED (KMF):
KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the third largest dairy co-operative amongst the dairy cooperatives in the country. In South India it stands first in terms of procurement as well as sales. One of the core functions of the Federation is marketing of Milk and Milk Products. The Brand 'NANDINI' is the household name for Pure and Fresh milk and milk products. KMF has 13 Milk Unions throughout the State which procure milk from Primary Dairy Cooperative Societies (DCS) and distribute milk to the consumers in various Towns/cities/Rural markets in Karnataka. The first ever World Bank funded Dairy Development Program in the country started in Karnataka with the organization of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from World Bank, Operation Flood II & III. Coordination of activities among the Unions and developing market for Milk and Milk products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid milk among the member Milk Unions is monitored by the Federation. While the marketing of all the Milk Products is organized by KMF, both within and outside the State, all the Milk and Milk products are sold under a common brand name NANDINI.
List of co-operative milk producers societies unions:

Bangalore Milk Union Belgaum Milk Union Bellary Milk Union Bijapur Milk Union Dakshina Kannada Milk Union
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Dharwad Milk Union Gulbarga Milk Union Hassan Milk Union Kolar Milk Union Mandya Milk Union Mysore Milk Union Shimoga Milk Union Tumkur Milk Union
2.1 BACKGROUND AND INCEPTION OF THE COMPANY:
Mandya Milk Union was registered in the year 1987. The Product Diary, Gejjalagere was then managed by Mysore Dairy. In the year 1988, The Product Diary, Gejjalagere was handed over to Mandya Milk Union. MANMUL with its headquarters at Gejjalagere has got liquid milk plant of 2.0 Lakh liters capacity and a powder plant of 10 MT capacities per day through the assistance of NDDB. It has two chilling centers at Nagamangala and KR Pet. The diary has a spread of 47 acres of land at Gejjalagere and 3 acres each at KR Pet and Nagamangala. MANMUL was a part of Mysore & Tumkur Milk Union till 1987. In 1988 Union started marketing about 5,000 liters per day which gradually extended to about 15,000 liters. There came a boom through the advent of milk marketing in Bangalore city from 1993. As on today the Milk sales is about 1.59 lakhs liters per day(1.24 lakhs liters in sachet and 0.35 lakhs liters in bulk) with annual turnover of Rs.65 crores alone on this account out of the total Rs.100 crores turnover through the sales including milk products like Skim milk powder (SMP), Butter, Ghee, Burfi, Lassi, Curds etc. Once MANMUL got hold of the Bangalore marketing, it has a steady and continuous profits from 1994-95.
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2.2 NATURE OF THE BUSINESS CARRIED:
The MANMUL is stand for Mandya milk producers co-operative union limited. As the name implies the union is found for the purpose of the milk producers who were un-organized in nature in earlier days before foundation of this unions. The nature is that the organized milk union formed for the protecting the interest milk producers who were, un-organized in nature in olden days. In previous days milk producers were, who situated in villages are used to keep cows, buffalos, goats, sheeps etc. in that time what milk they produced is has no any organized market and they were not getting reasonable price for produced milk. These are provide the milk producers status in that time how they un-organized in nature. This is basis for the foundation of these dairy unions. Mainly the union stands for accumulating the milk from the milk producers who located in villages in large numbers. From its village level co-operative societies, milk transported through trucks to district milk union. Union supplies that milk to the milk buying customers who located in the urban areas. They use of fix the reasonable price to both buyers and milk producers.
2.3 VISION, MISSION AND QUALITY
VISION:
To grow in to Model Co-Operative Milk Union in the country. To produce more, sell more and serve more.
MISSION: Assuring the rural prosperity in the lives of members of milk producers in Mandya district.
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Study on Distribution Strategy of Nandini Milk In MANMUL THE QUALITY POLICY AND OBJECTIVE: 1. To encourage rural farmers to engage in dairy forming and producing more milk and good quality of milk at least cost. 2. To provide assured and remunerative market for the milk produced by the farmer members. 3.To provide good quality of milk and milk products to the people of urban area by scientifically processing the milk obtained from rural area. 4.To create harmonious environment for the union can perform at its best, being a communication bridge between producers and consumers. 5.To build village level institution co-operative sector to manage the dairy activities. 6.To provide good quality milk and milk products at competitive price to urban and rural consumers in order to fulfill this objective, the union is constantly engaged in working towards improvement s of the business as well as the welfare of members. This has resulted in greater performance on commercial as well institutional fronts.
2.4 Product Profile:

Constituents of milk percentage WATER BUTTER FA CASEIN ALBUMIN LACTOSE (MILK SUGUR) MINERALS 87.0% 4.0% 2.8% 0.5% 5.0% 0.7%
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The following are the Products and their quantity offered by MANMUL:
Nandini Toned Milk
Karnatakas the most favorite milk. This milk contains 3.0% of fat and 8.5% SNF. Available in 500ml and 1 liter packs. Nandini Homogenized Toned Milk
This is pure milk which is homogenized and pasteurized. Consistent right through, it gives you more cups of tea and coffee and is easily digestible. Available in 500ml and 1 liter packs. Nandini Full Cream Milk
Pure milk contains 6% fat and 9%SNF. A rich, creamer and tastier milk which is ideal for preparing home-made sweets and savories. Available in 500ml and 1 liter packs.
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Study on Distribution Strategy of Nandini Milk In MANMUL Nandini Curd
Nandini Curd made from pure milk. It is thick and delicious, gives you all the goodness of homemade curds. Available in 200gms and 500gms sachets. Nandini Butter
It is rich, smooth and delicious. Nandini Butter is made out of fresh pasteurized cream. Available in 100gms, 200gms and 500gms packs. Nandini Ghee
It is taste of purity. Nandini Ghee made from pure Butter.Hygenically manufactured and packed in a special pack to retain the goodness of the pure Ghee.
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Study on Distribution Strategy of Nandini Milk In MANMUL Nandini Peda
No matter what you are celebrating! Made from pure milk, Nandini Peda is a delicious treat for the family. Store at room temperature approximately 7 days. Available in 250gms pack containing 10 pieces each. Nandini Milk Powder
Nandini Milk powder gives purity and taste as similar to liquid milk. It can be store for long time than liquid milk at room temperature. Available in 50gms, 100gms, 200gms, 500gms and 1 kg packs.
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Study on Distribution Strategy of Nandini Milk In MANMUL The table shows various milk and milk products manufactured at MANMUL
Sl. No. 1 2 Product Name Toned Milk Homogenized Toned Milk Double Toned milk Quantity 1 LTR 250 ml 500 ml 500 ml 3 500 ml 250 ml 250 ml Dealers rate 23.16 6.76 7.72 12.06 11.10 4.83 5.79 MRP 24.00 7.00 8.00 12.50 11.50 5.00 6.00
Full Cream Milk
1 LTR 500 ml
Ghee
200 ml 500 ml 1000 ml 15 kg Tin
54.55 133.64 263.64 4363.65 8.85 17.70 40.91 113.64 204.55 116.07 6.48 13.88
60.00 147.00 290.00 4800.00 10.00 20.00 45.00 125.00 225.00 130.00 7.00 15.00
Skimmed Milk Powder
50 Grams 100 Grams 200 Grams 500 Grams 1 Kg
7 8
Butter Curds
500 Grams 200 Grams 500 Grams
Peda
250 Grams
62.50
70.00
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2.5 Area of operation:

As a district milk union under KMF, individually the union has no opportunities to expand their operation. This is because the MANMUL is structured under KMF as a district milk union of Mandya district. The union itself acts as a branch of KMF but the union has opportunities by way of marketing its milk products out of its limited market borders means of its district market borders. The district milk unions are controlled by the KMF, which acts as a mother organization to all other district unions in the Karnataka. The union receives all types of demand orders from in and outside the company. Especially the milk powder is more demand from foreign countries the union will produce other milk product according to their demand rate.
2.6 Ownership Pattern of MANMUL:

The ownership pattern in the MANMUL is characterized by members share capital investment. The members of the unions are the dairy co-operative societies (DCS), which parented by the district milk union. The unit, which acts as representative member of district milk union by locating in villages, is called as co-operative dairy society of respective village. Presently member share capital structure of the union is as here under. Accumulated members share capital in union is share capital; this share capital is deposited in MANMUL bank account in the name of respective member dairy co-operative societies.
2.7 Competitors Information:

The competitors for these union milk and milk products are other states milk unions, counterpart district union in Karnataka state and branded milk product producing companies. Other district milk unions products The competitors like loose milk supplier which engaged in accumulating milk and supplying that milk to respective district customers. This results in competition between district milk unions themselves, is the reason for the union losing the chance of getting new markets.
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The prime competitors in the market for Nandini milk are;

HERITAGE SWASTHIK DODLA AROGYA THIRUMALA SHRUTHI JERSY
2.8 Infrastructural Facilities in MANMUL:

a. Production infrastructure facilities MANMUL has got liquid milk plant two lakh liters capacity and powder plant of ten M T capacities per day through the assistance of national dairy development board (NDDB). It has chilling centers at Nagamangala, Malavalli and K.R.Pet. The dairy has a spread of 47 acres of land at Gejjalagere and 3 acres each at K.R.Pet., Nagamangala and Malavalli. The union has its own trucks for transporting the milk from dairy co-operative societies to its production units, with good milk from dairy co-operative societies its production units, with good milk procurement networks b. Canteen facilities for employee and workers As a Section 46 of the factories act, 1948 imposes a statutory obligation to employees to provide canteens in premises employing more than 300 workers, in MANMUL a big canteen is situated beside the working complex to provide canteen facilities. c. Accommodated buildings for operations of the union The union has good building infrastructure facilities to smooth functioning of different departments day-to-day operations in organization.
2.9 ACHIEVEMENT/AWARDS EARNED BY MANMUL:

On 26-03-2005 the union is recognized as ONE OF THE HONEST INCOME TAX PAYER by the commercial taxes department. Other achievements of the union can be revealed in following milestones of the union. 1. Establishment of 18 co-operative societies in district, which duly administered by women members. 2. In 1993-94 the union has increased its milk production [amt capacity to 2.0 lakh liter.] 3. In the year of 2002-03 the union has got the international license. The MANMUL is the first south milk union in getting this license. 4. The union is first union for supplying ghee to SHRI THIRUMALA TEMPLE through the tankers. 5. In the year 2003-04 the union has developed consolidated price list for cows milk and
buffalos milk, which is first in this types in all over Karnataka state. In the same period the union released double toned milk. 6. In 2009-10 creating the availability of milk and milk products through Exclusive joints (ATMs and Parlors). One ATM counter to be started in Mandya town.
2.10 Work flow model of MANMUL:

K.R.Pet Chilling center Nagamangala Chilling center
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DCS
DCS
DCS
DCS
K.R.Pet Chilling center DCS DCS
Nagamangala Chilling center
DCS
MANMUL
Processing section
Separation Pasteurization
Production
Packaging
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D C S: District Cooperative Society The workflow model which presents the operation of the company in the form of model is shown in following pictures. The end-to-end work process of company can be divided into 5 stages as year under. The figure shows the sequence of bringing to milk into MANMUL
Sequence of bringing milk into MANMUL:

Stage1. The workflow of the union starts from the process of the union starts from the process of weighing, sampling and chilling of procure milk from its member and non-member co-operative societies. The raw milk collected from societies transported to union through trucks. Stage2. This stage start with the process of storing the processed milk means of milk processed under the stages of weighing, sampling and chilling processes. The stored milk under this process is ready to use from next process for producing milk products. The milk stored in insulated tanks. Stage3. The stored milk processed under standardization process to get required quality after this process the milk sent to another two process namely cream separation process and pasteurization process. Stage4. The cream separated milk is stored in insulated tanks. The separated cream is processed and stored for next processes. In next stage hat cream is used for production of butter, ghee, Peda and cream based milk products. Stage5. In this stage the stored milk which already pasteurized and stored insulated tanks is sent to packaging processes. The packed milk stored in cold storage of 5 degree centigrade.
2.11Future growth and prospects:

The union intends to establish total of 100 DCS by the end of 2010. Planed to establish artificial insemination centers and chilling centers across the district. For this they are expected expenses of Rs 16800 for single AI centers, and Rs 201600 for cluster centers. Cowpea production 1.5 metric tons, 2500000 of route slip.
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The milk procurement is expected to increase to 4480-kgs.per day. The local sales are expected to 108610 LPD and bulk sales are 51610 LPD. Cattle food sales will also be increased to 106 metric ton. In addition to strengthening of market, network quality assurance programs and milk enhancement activities will be undertaken.
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AN OVERVIEW OF STUDY ON CHANNEL MEMBERS SATISFACTION IN MANMUL
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INFORMATION ABOUT CHANNEL MEMBERS OF MANMUL
Prime channel members: The prime channel members of Nandini liquid milk products
in MANMUL are Producers, Retailers, agents and parlors owners. More than 900 retailers, 872 agents and 2 parlors are playing a major role in distributing nandini liquid milk.
BASIC QUALITIES REQUIRED FOR CHANNEL MEMBERS OF MANMUL

Following are some of the basic qualities required for channel members of Nandini liquid milk in MANMUL. 1) Efficiency in work. 2) Negotiation techniques. 3) Timely delivery. 4) Financial capacity. 5) Designed layout. 6) Sales skill and sales experiences. 7) Educational qualification..etc
SELECTION CRITERIA OF AGENTS: In MANMUL, agents are selected on the basis of financial capacity, layout and his efficiency. And agents are also selected on the basis of Nomination of members of MANMUL.
TRAINING PROGRAMES FOR CHANNEL MEMBERS IN MANMUL

K.M.F. and MANMUL adopted some training programs for channel members of Nandini liquid milk to improve their knowledge and to increase the sales of nandini liquid milk. The impart ant training programs are
1) Self study system.
2) On the job training. 3) Presentations etc
DISTRIBUTION METHODS OF NANDINI LIQUID MILK IN MANMUL 1) Distribution through agents. 2) Direct distribution to industrial customers. 3) Distribution through parlors. 4) Direct distribution to occasional customers.
MOTIVATIONAL TOOLS: To motivate channel members of Nandini liquid milk,

MANMUL adopted some Motivational tools which encourage channel members to improve their sales. Which are 1) Incentives 2) Bonus 3) Awards and rewards 4) Promotions..etc
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DISTRIBUTION STRATEGIES OF MANMUL

MANMUL not only operates in Mandya district, But, Also operates in some parts of Bangalore Rural and Bangalore Urban. It operates more than 600 distribution centers, concerning all the agents besides, there are 2 milk parlors maintained by the dairy. The following are the strategies of Distribution which are adopted by MANMUL efficient and easy Distribution. 1) All the Heavy vehicles are changed to Medium insulated vehicles to ensure timely supply. 2) To strengthen Home delivery & to encourage delivery boys, Water proof caps & HDPE bags are provided. 3) Divide the area of operation in particular basis to fast supply of Nandini products. 4) Door to Door campaigning is taken to improve distribution method. 5) Milk is made available throughout the day by opening "ANY TIME MILK COUNTERS". 6) It is a future plan of MANMUL that Agents are assigned between every 200 meter within geographical area. Effective sales distribution of Nandini liquid milk is influenced by the following aspects. 1) Producer of the milk. 2) Brand name of the milk. 3) Quality of the milk. 4) Availability of the milk. 5) Price of the milk. 6) Promotion about the milk product. to
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LEVEL OF DISTRIBUTION:
MANMUL adopted 1 level distribution to distribute its products to consumer. This level includes mainly, producers (MANMUL), agents, retailers, parlous, industrial customers, occasional customersetc
AREA OF OPERATONS:
Mandya taluk Maddur taluk Nagamangala taluk Malavalli taluk K.R. pet taluk Srirangapatna taluk Distribution routes: 44 Distribution unit: liter Big parlors: 02 Retailers: more than 200 Agents: more than 900 Pandavapura taluk Ramanagar taluk Magadi taluk Channapatna taluk Bidadi taluk Kengeri
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SWOT ANALYSIS
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4. SWOT ANALYSIS
Strength
1. Market leader for both milk products and services. 2. Provides excellent veterinary, AI, Vaccination, Extension facilities, Feeds and Fodder seeds supply etc., in the field, which cannot be thought off by any private operator. Hence earned lot of goodwill from member producers, who patronize the Union throughout the year. 3. Has earned the distinction of not failing to deliver the Milk to Market on time year. 4. NANDINI is a trusted household brand name. Highly remunerative and timely payment to producers. 5. Union is in good financial position, even with least margin between procurement price (one among the highest in the country) and sale price (one among the lowest in the country). 6. Good institutional support from KMF, NDDB, NCDFI, Etc., throughout the
Weakness
1. Lack of flexibility in deciding about its operation. No authority over issues like pricing, offering volume discounts etc. 2. No replacement policy, resulting in safe indenting by the Agents. 3. Inter Union competition in same place. 4. Organizational structure does not permit incentive/ reward for good performance among DCS, Sales Agents, Material suppliers and Employees for Quality performance, achieving volumes, etc.
Opportunities
1. MANMUL has got eternal Bangalore market which can be extended very comfortably to 1.5 Lakh liters market in about couple of seasons. 2. Because of logical location MANMUL has perennial supplies of milk to Tamil Nadu and Kerala 3. At much better price than any other milk unions price obtained in Karnataka.
Study on Distribution Strategy of Nandini Milk In MANMUL 4. Institutional markets, bakeries, hotels, Etc., are not fully tapped and these can captured preferably by direct marketing. 5. Market milk share of unorganized sector still remains to be tapped. 6. Diversification into milk products like Peda, Burfi, Lassi etc.,
Threats
1. After liberalization, entry barriers in the dairy industry eased for new entrants. 2. Private dairies procure milk at lost cost from producers and sell milk resorting to unethical trade practices. It is a marketing war in which union has to fight by rules and other i.e., private dairies do not fight by rules. Hence, there is no level playing field for organization with social responsibilities to compete with organizations with purely profit motive. 3. Some private dairies are selling homogenized milk, which appears rich. The union cannot homogenize all its huge quantity of milk being sold due to lack of homogenizing capacity and increase in processing cost. 4. Absence of foolproof quality/ adulteration monitoring mechanism by the government, resulting in proliferation of adulterated / substandard milk in the unorganized sector and by private dairies. 5. Plans of major companies like Reliance, ITC to enter into milk market in future. 6. The competition from co-operatives like AMUL, VIJAYA, AAVIN... Etc., for the products like SMP, Butter, Ghee, Etc.
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ANALYSIS OF FINANCIAL STATEMENT
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5. SUMMARY OF LATEST ANNUAL REPORTS OF THE MANMUL Particular

Trading account Sales Account Less: Cost of goods sold Opening stock Add: Purchase a/c Less: Closing stock
Rs
Rs
3356981489.79
69700789.68 2,840293024.93 80676996.67 2829316817.94
Direct Expenses Gross Profit Income statement Indirect income Interest on deposit and advances Other income Indirect Expenses Administrative Expenses Interest and Banking charges Selling and Distribution Expenses Staff Expenses Taxes and Insurance Depreciation Net Profit
231827535.19
3061144353.13 295837136.66
2013900.10
12079769.12
14093669.22
8628207.10 6527955.03 52438230.12
122895510.01 34804828.51 18001679.10 243296409.87 66634396.01

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Study on Distribution Strategy of Nandini Milk In MANMUL Profit and Loss Account For the Period Ending 31st March 2011
Particular
Trading account Sales Account Less: Cost of goods sold Opening stock Add: Purchase a/c Less: Closing stock
Rs
Rs
3356981489.79
69700789.68 2,840293024.93 80676996.67 2829316817.94
Direct Expenses Gross Profit Income statement Indirect income Interest on deposit and advances Other income Indirect Expenses Administrative Expenses Interest and Banking charges Selling and Distribution Expenses Staff Expenses Taxes and Insurance Depreciation Net Profit
231827535.19 3061144353.13 295837136.66
2013900.10 12079769.12 14093669.22
8628207.10 6527955.03 52438230.12 122895510.01 34804828.51 18001679.10 243296409.87 66634396.01
Table No. Profit and Loss Account for the Period Ending 31st March 2011
Study on Distribution Strategy of Nandini Milk In MANMUL Balance sheet as on 31st March 2011
Particulars
Sources of funds Capital Account Loans(Liability) Current Liabilities Audit Objection(A) Audit Recoveries(L) Other Funds Profit and loss account Total Application of funds Fixed assets Investments Current Assets Audit objections(L) Audit Recoveries(A) Total 3724356.43 168595614.21
Rs
180392228.39 88924627.00
3022615.20
2821435.65 98843284.05 546324169.93
162135673.38 11707000.00 365708819.98 3022615.20 3750052.37 546324160.93
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Table No. Balance sheet as on 31st March 2011 and 2010 Ratio Analysis
Ratio Liquidity Ratio Current Ratio Quick Ratio Leverage Ratio Debt Equity 0.694 Ratio Activity Turnover Ratio Total Asset 7.28 times Turnover Ratio Fixed Asset 22.55 times Turnover Ratio Current Asset Turnover Ratio Profitability Ratio Gross Profit 7.5% Ratio Net profit 0.796% Ratio 8.8% 10.75 times Times 0.493 2010 Year 2010 2011 Year 2011
1.89:1
2.17:1
1:41:1
Times
Times
1.985%
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DATA ANALYSIS AND INTERPRETATION
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DATA ANALYSIS AND INTERPRETATION

TABLE1: The table indicates the basic qualities necessary for channel members of
nandini liquid milk for efficient distribution . Particulars Timely delivery of milk Efficiency of channel members Negotiation techniques of channel members All the above Total Responds 11 06 04 29 50
GRAPH1: The graph shows the basic qualities which are necessary for channel members of MANMUL
to distribute Nandini milk to different channels.
Responds
Time sense Efficiency Negotiation techniques All the above
Primary Source
INFERENCE: Majority of the respondents (58%) were says all the channel members should
have time sense, efficiency and negotiation technique together. 22% of the respondents are says time sense is essential. Some (12%) of the respondents suggest efficiency is needed. Only 8% of the respondents are says to have negotiation technique.
TABLE 2: the table indicates the regular industrial customers of MANMULs milk
products Options Hospital industries Educational institutions Hotels customers Banks institutions Total Respondents 15 10 18 07 50
GRAPH 2: The below graph gives information about regular industrial customers for Nandini liquid milk
in MANMUL.
Respondents
18 16 14 12 10 8 6 4 2 0 Hospitals Education institutions Hotels Banks
Respondents
Primary Source
INFERENCE: According to respondents, Hotels are the most (36%) regular customers for
Nandini milk, next to Hotels, Hospitals (30%), Education institutions are third impartant (20%) regular customers and banks are least(14%) took last place.
Study on Distribution Strategy of Nandini Milk In MANMUL TABLE 3: The table indicates who are all the channel members responsible for timely delivery of milk to lower channels. options Channel members Delivery vehicle Both A and B Total Respondents 08 23 14 50
GRAPH 3: The graph gives the representation of channel members responsibility in case of
timely delivery to lower channels.
Respondents
Both A and B
Delivery vehicle
Respondents
Agents 0 5 10 15 20 25
Primary Source
INFERENCE: According to respondents, the time management, when distribute milk is mainly
depends on delivery vehicles. 46% of the respondents were agreed this. 28% of respondents says it is depends on both agents and delivery vehicles. And only 16% of the respondents says, it is depends on agents.
Page 39
TABLE 4: This table indicates the selection basis of agents with respect to capacity and
layout destination.
Options Capacity of the agents Layout destination Both A and B Total
Respondents 17 11 22 50
GRAPH 4: The below graph shows the basis of selection pattern of agents in MANMUL with
respect to capacity and layout destination.
Respondents
Capacity Layout Both A and B
Primary Source
INFERENCE: Majority (44%) of the respondents were interested to select agents on the basis
of capacity and layout. 34% of the respondents were interested to select on the basis of capacity. And only least (22%) of the respondents are interested to select on the basis of layout.
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TABLE 5: The table indicates the basis of segmentation while designing the sales territories
of MANMUL. Options Geographical basis Sociocultural basis Economic basis Demographic basis Total Respondents 33 08 06 03 50
GRAPH 5: This gives the graphical representation of basis of designing the sales territories to segment
market area.
Respondents
35 30 25 20 15 10 5 0
Respondents
Primary Source
INFERENCE: A good majority of the respondents(66%) were says, its better to design sales
territories on the basis of geographical area. 16% of the respondents were interested to design on the basis of Socioculture basis. 12% of the respondents say, economic basis is suitable. And only least least number (6%) is interested in demographic basis.
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TABLE 6: The table indicates the factors which influences Effective sales distribution of
Nandini milk with respect to quality, price and availability of milk.
Options Quality of milk Price of milk Availability of milk All the above Total
Respondents 09 12 06 23 50
GRAPH 6: This gives the graphical representation on the factors which influences effective distribution of
milk products with respect to quality, price and availability of milk.
Respondents
25 20 15 10 5 0 Quality Price Availability All the above Respondents
Primary Source
INFERENCE: Majority of the respondents(46%) are says, effective sales distribution depends
on quality, price and availability all together. 18% of the respondents are says its depends on quality, 24% says its depends on price. And least number(12%) of respondents are says its depends on availability.
TABLE 7: The table gives information about training programs adopted by MANMUL to
train channel members in order to increase sales and distribution.
Options On job training Self study system Presentation Total
Respondents 36 09 05 50
GRAPH 7: The below graph gives information about different training programs adopted by MANMUL to train channel members to increase sales.
Respondents
On job training Self study system presentation
INFERENCE: A good majority (72%) of the respondents are interested in on-job training.
Some (18%) are interested in self study system and only few (10%) are interested in presentation.
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TABLE 8: The table indicates the motivational tools adopted by MANMUL to motivate
channel members with respect to salary, bonus, awards and rewards.
Options Salary Incentives Awards and rewards Bonus Total
Respondent 05 31 06 08 50
GRAPH 8: The graph shows the motivational tools adopted by MANMUL to motivate channel members
with respect to salary, bonus, awards and rewards.
Respondent
Bonus Awards and rewards Respondent Incentives Salary 0 10 20 30 40
Primary Source
INFERENCE: Most of the respondents suggest to give more incentives to channel members to
increase sales. And some are interested in bonus. Some are in awards and rewards and few are suggest giving salary.
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TABLE 9: The below table indicates which distribution method of nandini milk in
MANMUL is easy and earn profit. Options Direct distribution to industrial customers Distributions through agents Direct distribution to customers Total Respondents 10 37 03 50
GRAPH 9: The graph gives the typical information about the different distribution methods of
MANMUL.
Respondents
40 30 20 10 0
Respondents
Primary Source
INFERENCE: A good majority (74%) of the respondents was interested in direct distribution
to industrial customers. 20% of the respondents were interested in distribution through agents and only 6% were interested in direct distribution to customers.
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TABLE 10: The table indicates the qualities which are essentially required for channel
members OF MANMUL.
Options Marketing management education Sales skills Sales experience All the above Total
Respondents 04 09 11 26 50
GRAPH 10: the graph shows what are all the qualities required for channel members of
MANMUL.
Respondents
All the above
Sales experience Respondents Sales skills Marketing management education 0 5 10 15 20 25 30
Primary Source
INFERENCE: a good majority of the respondents(52%) are says, all the channel members
should have sales experience, sales skills and management education together. 22% of the respondents are interested to have sales experience. And 18% of the respondents were interested to have sales skills and very few members are respondents (8%) are says channel members should have management education.
Page 46
TABLE 11: The table indicates the opinion of respondents about the statement, taking
and considering the special orders is advantage for MANMUL.
Options Yes No Total
Respondents 50 0 50
GRAPH 11: The graph shows the respondents opinion about the statement taking and considering special
orders is advantage for MANMUL.
Respondents
50 40 30 20 10 0 Yes No Respondents
INFERENCE: all the respondents says taking and considering the special orders is advantage for MANMUL.
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TABLE 12: The table explains the satisfaction opinion of channel members about their
service to both MANMUL and customers. Options Highly satisfied Satisfied Not satisfied Total Respondents 40 10 0 50
GRAPH 12: The graph indicates the satisfaction opinion of channel members about their service to both
MANMUL and customers.
Respondents
Not satisfied
Satisfied
Respondents
Highly satisfied 0 10 20 30 40
Primary Source
INFERENCE: Almost all the channel members are highly satisfied with their service. And few
are satisfied.
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Findings
1. Majority of the respondents specially agents are uneducated, they were not even completes SSLC. 2. Industrial customers are regular & potential customers to MANMUL and from these MANMUL earn more profit. 3. Majority of the respondents are says that timely delivery, efficiency & negotiation technique are essentially required for channel members to serve efficiently and effectively. 4. Most of the respondents are says that time management when deliver milk is mainly depends on both agents & delivery vehicles while distribute milk to different channels. 5. Most of the respondents (72%) are suggest Adopting on the job training method, 18% of the respondents are interested in self-study system & only 10% are says presentation is better. 6. Most of the respondents are interested in direct distribution to industrial customers, some are interested in distribution through agents & least number of respondents are interested in direct distribution to customers. 7. MANMUL has disciplined friendly and supportive working environment among employees and labors, leads to effective distribution. 8. Channel members are highly satisfied themselves about their service. 9. Agents are selected on the basis of both financial capacity & layout destination. 10. According to respondents, all the channel members essentially need some knowledge and training programs to improve their knowledge about their service.
Page 49
SUGGESTIONS
Based on the findings, the following suggestions are suggested to MANMUL to improve themselves in MANMUL..
1. MANMUL should also consider the education qualification while selecting agents and other channel members to improve them. 2. To motivate agents awards, bonus and other offers should be provided along with incentives. 3. Segmentation is made on the basis of geographical basis to increase the sales of Nandini liquid milk 4. Channel members of MANMUL need more training programs especially on the job training. 5. MANMUL should strictly restrict the parlors and agents to not sell any other products except MANMUL products. 6. To motivate channel members, along with the incentives, promotion system adopting is better technique which influences MANMUL to increase profit and also it increases channel members efficiency and their satisfaction.
Page 50
OBSERVATIONS
Page 51
6. OBSERVATIONS ON DIFFERENT DEPARTMENTS DURING PROJECT PERIOD IN MANMUL ORGANISATION

The MANMUL which started in 1988 as a district milk union of Mandya District, today it is on the way to achieving its aimed objectives of serving its Milk producers and customers. HR department: In that department I observed that, this department deals with the employees career planning, award, technical matter, VRS ,terminal benefits, PF etc.., all the people who work under this department are very friendly. Finance department: Here all the workers are busy with their work as its function deals with financial matters. I observed that it as the sub division function like raising of funds, allocation of funds, maintenance of records ,cost and management account. Production department: Here I learnt what are the responsibilities and duties of plant manager. Who is the responsible for the entire functioning of the plant and who ensures the efficient utilization of three Ms. Marketing department: I observed marketing department is well established with sufficient space to perform marketing activities, such as.

Selling and distribution of products. Maintaining records for all transactions to evaluate the performance of past records. They call the meeting of retailers and distributors when its required to discuss with them. They maintaining track records of products are also helpful in evaluating sales of present and past periods.
The department is having a practice of participate in other product exhibitions.
MIS department: Here the manager of Management information system controls this department. This department plays a vital role in collecting, storing and disseminating of required data in organization. Because of All the departments are busy with their work.
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Study on Distribution Strategy of Nandini Milk In MANMUL Purchase department: While the training time I observed the procedure of purchase department. Here I mention those procedures. The purchasing procedure of Purchase department

The need for purchase (when need arise to purchase material). Requisition for purchase (by respective department). Calling tender for particular material (from respective material suppliers). Receiving quotation price list (from suppliers who ready to supply). Analyzing quotation price lists and placing order with suppliers who found well (well in terms of high quality and low price)
Receiving ordered materials (from selected suppliers). Payment of amount bill through finance department (to respective suppliers).
R&D department: In this department I learnt that, this department strives to develop new innovative ways of producing the products for cost efficiency and to invent new flavor products satisfy the changing taste of customers. Totally I gained the different experience with different people in different departments. These are all the things which made me to learn some knowledge about work and work life. Firstly, I got to know that personal relation starts long with the professionals relationship.
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LEARNING EXPERIENCE
Learning is a continuous process by which we acquire the knowledge that we apply to our future Endeavour. The university has given me an opportunity to learn many aspects pertaining to the working of the organization. The objective of the project is to study the distribution strategies of MANMUL products and services. Along with this objective, to study the structure, style, system, skills, strategy, staff, shared values and functioning of various dept. a theoretical study of management practices will not offer a useful insight if not supplemented by a practical exposure. The project work at MANMUL exposed me to the management practices. The strategies studied in theory in a controlled environment will fail to deliver on the actual business scenario. Hence, this study taught me that firms have to thrive in harsh market realities and even the best of the strategies may be ineffective. It was an enriching experience to work in MANMUL, it give me a good exposure where I acquired the practical knowledge about the overall functioning of the organization. The project work has given me an opportunity to study the marketing strategy and also make me a ready to face different situations which an individual would normally come across during the work life. The project mainly provided an opportunity to know distribution methods and strategies of organization. The project provided an opportunity to relate theoretical aspects in working environment concepts such as delegation of authority, reporting, services.etc Different objectives of MANMUL and distribution strategy were helpful to me to know the levels of distribution channel. To understanding different methods of distribution of Nandini milk. This project gives a great tribute to me. Other than this, this project
Study on Distribution Strategy of Nandini Milk In MANMUL helpful me to study the comprehensive picture of marketing strategies taken by MANMUL and other strategies. The disciplined friendly and supportive working environment leads to effective distribution and sales. All the employees and channel members works in a highly disciplined atmosphere. To conclude, this study gave me practical insights to the working of an understanding and supplementing my theoretical learning. Iam in a better position to understand, comprehend the problems faced by organization and to work under competitive environment. The project has helped me to acquire skills required to be competitive in near future.
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CONCLUSION
1. The study says that the most of the channel members are satisfied themselves about their service to both MANMUL and customers. 2. The study says that its benefit to MANMUL, if it is improves direct distribution to industrial customers. 3. On-the job training is required for all the channel members to train them to improve their knowledge. 4. MANMUL should also concentrate on internet marketing and e procurement to improve sales and distribution. 5. Its better to adopt more motivational tools to motivate channel members to increase their efficiency in sales and distribution.
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QUESTIONNAIRE
Declaration Iam somashekara K.S. studying 2nd year MBA in PES college of engineering, Mandya. Iam conducting a survey for distribution strategy of nandini milk for the purpose of my project work. Please fill this
questionnaire with respect to your service about MANMUL. Date: Place Signature
NAME :
ADDRESS : . . .
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EDUCATIONAL QUALIFICATION:
a. PG
b. UG
c. PUC
D. SSLC
AGE GROUP:
Bet 20-30 Bet 30-40 Bet 40-50 Above 50
1. Which of the following institutions is most regular industrial customers for Nandini milk? a. Hospitals customers c. Educational institutions b. Hotels d. Banks
2. Which of the following qualities should essentially required for distribution members of Nandini liquid milk? a. Time delivery c. Negotiation technique b. Efficiency d. All the above
3. According to you, the time management, When distribute milk to mainly depends on
parlors and customer is
a. Agents
b. Delivery vehicles
c. Both a & b
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4. according to you, its better that, Agents are selected on the basis of
a. Capacity
b. Layout
c. Both a &b
5. Sales territories are designed on the basis of
a. Demographic basis c. sociocultural basis
b. Geographic basis d. economic basis
6. Effective sales distribution of Nandini milk is influenced by
a. Quality c. Availability
b. Price d. All the above
7. Which of the following Training method is adopted is better to train channel to train the channel members of MANMUL?
a. On the job Training c. Product demonstration
b. Self-study system
8. Which of the following option is suitable, In order to increase the sales of Nandini milk to motivate channel members? a. Salary C. Awards & Rewards b. Incentives d. Bonus
9. Which of the following method of distribution is easy and earn Profit for MANMUL?
a. Direct Distribution to industrial customers b. Distribution through agents c. Direct distribution to customers
10. Which of the following qualities should have all distribution members?
a. Marketing management education b. Sales skills c. sales experience d. All the above
11. "Taking and considering the orders of special functions like marriage and other events is advantage for MANMUL" would you like this? A. yes B. no
12. Are you satisfied with overall performance of all employees and workers of MANMUL? a. highly satisfied b. satisfied c. not satisfied
Page 60
BIBILOGRAPHY
BOOKS: 1. MARKETING MANAGEMENT BY PHILLIP KOTLER(11TH EDITION) 2. INDUSTRIAL MARKETING 3. SALES MANAGEMENT by Toppan Panda
JOURNALS: 1. ANNUAL REPORTS OF MANMUL 2010-11 2. BUSINESS LINE 3. MAGAZINES.etc 4. COMPANY PROFILE 2010-11
WEBSITES: 1. www.Indiandairy.com 2. www.google.com 3. www.nandinimilk.com 4. www.nandiniproducts.coop
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A Study On Channel Members Satisfaction of Nandini Liquid Milk IN Mandya Milk Union Limited. (Manmul)

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Study on Distribution Strategy of Nandini Milk In MANMUL

OBJECTIVES OF THE STUDY

Dept Of MBA ,Marketing

Study on Distribution Strategy of Nandini Milk In MANMUL

1) Primary data collection

2) Secondary data collection

SCOPE OF THE STUDY

LIMITATIONS OF THE STUDY

Dept Of MBA ,Marketing

Study on Distribution Strategy of Nandini Milk In MANMUL

Study on Distribution Strategy of Nandini Milk In MANMUL

Dept Of MBA ,Marketing

Study on Distribution Strategy of Nandini Milk In MANMUL

Origin of the industry:

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Study on Distribution Strategy of Nandini Milk In MANMUL

Dept Of MBA ,Marketing

Study on Distribution Strategy of Nandini Milk In MANMUL

List of co-operative milk producers societies unions:

Dept Of MBA ,Marketing

Study on Distribution Strategy of Nandini Milk In MANMUL

2.1 BACKGROUND AND INCEPTION OF THE COMPANY:

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Study on Distribution Strategy of Nandini Milk In MANMUL

2.2 NATURE OF THE BUSINESS CARRIED:

2.3 VISION, MISSION AND QUALITY

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2.4 Product Profile:

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Study on Distribution Strategy of Nandini Milk In MANMUL

Dept Of MBA ,Marketing

Study on Distribution Strategy of Nandini Milk In MANMUL Nandini Curd

Dept Of MBA ,Marketing

Study on Distribution Strategy of Nandini Milk In MANMUL Nandini Peda

Dept Of MBA ,Marketing

Full Cream Milk

200 ml 500 ml 1000 ml 15 kg Tin

Skimmed Milk Powder

50 Grams 100 Grams 200 Grams 500 Grams 1 Kg

500 Grams 200 Grams 500 Grams

Dept Of MBA ,Marketing

Study on Distribution Strategy of Nandini Milk In MANMUL

2.5 Area of operation:

2.6 Ownership Pattern of MANMUL:

2.7 Competitors Information:

Dept Of MBA ,Marketing

Study on Distribution Strategy of Nandini Milk In MANMUL

The prime competitors in the market for Nandini milk are;

HERITAGE SWASTHIK DODLA AROGYA THIRUMALA SHRUTHI JERSY

2.8 Infrastructural Facilities in MANMUL:

Study on Distribution Strategy of Nandini Milk In MANMUL

2.9 ACHIEVEMENT/AWARDS EARNED BY MANMUL:

2.10 Work flow model of MANMUL:

Dept Of MBA ,Marketing

Study on Distribution Strategy of Nandini Milk In MANMUL

K.R.Pet Chilling center DCS DCS

Nagamangala Chilling center

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Study on Distribution Strategy of Nandini Milk In MANMUL

Sequence of bringing milk into MANMUL:

2.11Future growth and prospects:

Dept Of MBA ,Marketing