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EXECUTIVE SUMMARY
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INDUSTRY PROFILE
INDUSTRIAL BACKGROUND
Dairying prior to operation flood:
The earliest attempts of dairy development can be traced back to British rule, when the
Defiance Department established military dairy farms to ensure the supply of milk and butter to the
colonial army. The first of these farms was set up in Allahabad in 1913; subsequent facilities were
established at Bangalore, Ootacamund and Karnal. These farms were well maintained. As animals
were reared under farm conditions, some herd improvement was made using artificial insemination.
This approach did not have any impact on the supply of milk to urban consumers, which was of
major concern to civilian authorities but less important to the military. With the growth of the
population in urban areas, consumers had to depend on milk vendors who kept cattle in these areas
and sold milk, often door-to-door. As a result several cattle sheds came into existence in different
cities.
To some extent, the Second World War gave impetus to private dairies with modestly
modernized processing facilities. In the cities like Bombay, Calcutta, Madras, and Delhi and in some
large townships, processed milk, table butter and ice-cream were available. Polson’s, Kelventers and
the Express Dairy were some of the pioneer urban processing dairies. These dairies were not
concerned with improving the breed of milk animals but were content with contracting milk supplies
through middlemen or their own staff. Milk producers as well as consumers were exploited to a large
extent. Despite modernized processing facilities, dairying remained unorganized.
With the initiation of India’s first five-year plan in 1951, modernization of the dairy industry
became a priority of the government. The goal was to provide hygienic milk to the country’s
growing urban population. Initial government action in this regard consisted of organizing “milk
schemes” in large cities. To stimulate milk production, the government implemented the Integrated
Cattle Development Project (ICDP) and the Key Village Scheme (KVS), among other similar
programmes. In the absence of a stable and remunerative market for milk producers, however, milk
production remained more or less stagnant.
During the 1960s, various state governments tried out different strategies to develop dairying,
including establishing dairies run by their own departments, setting up cattle colonies in urban areas
and organizing milk schemes. Almost invariably, dairy processing plants were built in cities rather
than in the milk sheds where milk was produced. This urban orientation to milk production led to the
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establishment of cattle colonies in Bombay, Calcutta and madras. These government projects had
extreme difficulties in organizing rural Milk procurement and running milk schemes economically,
yet none concentrated on creating an organized system for procurement of milk, which was left to
contractors and middlemen. Milk’s perishable nature and relative scarcity gave the milk vendors
leverage, which they used to considerable advantage. This left government-run dairy plants to use
large quantities of relatively cheap, commercially imported milk powder.
All these factors combined left Indian dairying in a most unsatisfactory low-level
equilibrium. The establishment and prevalence of cattle colonies emerged as a curse for dairying in
the rural hinterland as it resulted in a major genetic drain on the rural milk animal population, which
would never be replaced. City dairy colonies also contributed to environmental degradation, while
the rural producer saw little reason to increase production.
Operation flood:
The strategy for organized dairy development in India was actually conceived in the late
1960s, within a few years after the National Dairy Development Board (NDDB) was founded in
1965. It rested on the Operation Flood programme, which was conceived by the NDDB and endorsed
by the government. Operation Flood is a unique approach to dairy development. During the 1970s,
dairy commodity surpluses were building up in Europe. The chairman of NDDB saw those surpluses
as both a threat and an opportunity. The threat was massive exports of low-cost dairy products to
India, which had it occurred, would have told the death-knell for India’s staggering dairy industry.
The large quantities that India was already importing had eroded domestic markets to the point
where dairying was not viable. The opportunity, on the other hand, was built into the Operation
Flood strategy. Designed basically as a marketing project, Operation Flood recognized the potential
of the European surpluses as an investment in the modernization of India’s dairy industry. With the
assistance of the World Food Programme, food aid in the form of milk powder and butter oil was
obtained from the countries of the European Economic Community (EEC) to finance the programme.
Operation Flood is a programme designed to develop dairying by replicating the An and
Model for dairy development, which has stood the test of time for almost half a century. The first
phase of Operation Flood was launched in 1970 following an agreement with the World Food
Programme, which undertook to provide as aid 126000 tonnes of skim milk powder and 42000
tonnes of butter oil to finance the programme.
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The programme involved organizing dairy co-operatives at the village level; creating the
physical and institutional infrastructure for milk procurement, processing, marketing and production
enhancement services at the union level; and establishing dairies in India’s major metropolitan
centres. The main thrust was to set up dairy co-operatives in India’s best milk sheds, linking them
with the four main cities of Bombay, Calcutta, Delhi and Madras, in which a commanding share of
the milk market was to be captured. In achieving that goal, the first phase of Operation Flood laid the
foundation for India’s modern dairy industry, an industry that would ultimately meet the country’s
need for milk and milk products.
The second phase of the programme was implemented between 1981 and 1985. Designed to
build on the foundation laid in the first phase, it integrated the Indian Dairy Association-assisted
dairy development projects being implemented in some Indian states into the overall programme.
The current third phase of Operation Flood aims at ensuring that the co-operative institutions
become self-sustaining. The programme envisages substantial expansion of the dairy processing and
the marketing facilities; an extended milk procurement infrastructure; increased outreach of
production enhancement activities and professionalization of management in the dairy institutions.
National Dairy Development Board (NDDB)
National Dairy Development Board was established in 1965 under the Societies Registration
Act, the Charitable Trust Act and the Public Trust Act, to fill the vacuum of national-level
organization to replicate An and Model dairy co-operatives throughout the country and to make
available multidisciplinary, professional dairy expertise to dairies in the public and co-operative
sectors. During its initial stages, NDDB was assisted financially by the Government of India, the
Danish Government and by AMUL. It also received aid from the United Nations Children’s Fund
(UNICEF) in the form of teaching material and equipment.
In 1969, when the Government of India approved the Operation Flood programme and Its
financing through the monetization of World Food Programme-gifted commodities, it was found that
the statutes under which NDDB was registered did not provide for handling of government funds.
Therefore, in 1970 the government established a public-sector company, the Indian Dairy
Corporation. The IDC was given responsibility for receiving the project’s donated commodities;
testing their quality; their storage and transfer to user dairies and receiving the dairy payments. Thus
it served as finance-cum-promotion entity while the entire Operation Flood technical support was
provided by NDDB. To avoid any duplication in their activities or overlap of functions, the IDC and
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NDDB were eventually merged into a newly constituted NDDB by an Act of Parliament passed in
October 1987.
KARNATAKA MILK FEDERATION
Karnataka Milk Federation (KMF) was instituted in 1984, by federating the 13 milk unions in
the state and thus forming the state level apex organization. As a co-operative apex body of the state
of Karnataka, it represents dairy farmers’ organization and also implements dairy development
activities to achieve the following objectives:-
Provides assured and remunerative market for the milk produced by the farmer members.
Provide quality milk to urban consumers.
To build village level institutions in co-operative sectors to manage the dairy activities.
To ensure provision of milk production inputs, processing facilities and dissemination of
know-how.
To facilitate rural development by providing opportunities for self employment at village
level, preventing migration to urban areas, introducing cash economy and opportunity for
steady income.
List of co-operative milk producers under Karnataka Milk Federation:
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2 COMPANY PROFILE
INTRODUCTION:
MYSORE DAIRY, a unit of Mysore – Chamrajanagar District Co-Operative milk producers Union
Limited (MYMUL) registered under Karnataka co-operative act has been commissioned in the year
1976. It is fully owned and managed by Mysore and Chamrajanagar districts of Karnataka state.
The philosophy of this co-operative milk producer’s organisation is to eliminate middlemen
and organize institutions owned and managed by milk producers, by employing professionals.
Achieve economies of scale of rural milk producers by ensuring maximum returns and at the same
time providing wholesome milk at responsible price to urban consumers. Ultimately, the complex
network of co-operative organisation should build a strong bridge between masses of rural producers
and millions of urban consumers and achieve a socio-economic revolution in the village community.
2.1 Background and inception of the company
Under the World Bank aided Karnataka Dairy Development Projects, the activities on Dairy
Development were taken up in the year 1975. The Mysore Coop Milk Producers Societies Union
Ltd was established on 23.11.1976, having the jurisdiction extended to the entire Mysore District
and Five Taluks of Mandya District. The Union undertook the work of organization of Milk Co-
operatives in ‘AMUL Pattern’ with the main objective of socio-economic reformation of the
farmers in the rural areas through Dairying as main subsidiary occupation.
Later the Union was bifurcated into Mysore and Mandya District Co-Operative Milk
Producers Societies Union Ltd from 01.04.1987. Consequent to the bifurcation of Mysore District
into Mysore and Chamrajanagar Districts, this Union is renamed as
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Mysore-Chamrajanagar District Coop Milk Producers Societies Union Ltd.
Main functions of this union:
To provide remunerative market for the milk produced by the rural farmers throughout the
year irrespective of the quantity supplied by them.
First Aid facility at the Society level.
Emergency visits to treat the animals on a nominal fee to be collected from the producer.
Cross breeding facility through Artificial Insemination service.
Supply of balanced Cattle Feed to the farmers of the Coop Societies at subsidized rates.
Technical guidance and supply of root slips/seeds for Fodder cultivation by the members of
the Coop Societies
Effective supervision/extension services through field executives of the Union.
Intensive Co-Operative education programmes to the women members of the Dairy Coop
Societies through Coop Development Programme.
Mysore Dairy with the capacity of 10 TLPD was started in the year 1965 under the control of the
Department of Animal Husbandry and Veterinary Services of Karnataka State, which was transferred
to Karnataka Dairy Development Corporation in the year 1974. The capacity was expanded to 60
TLPD in 1980 and transferred to the Karnataka Milk Federation in 1984. The capacity was expanded
to 100 TLPD under the Operation Flood II and further expanded to 150 TLPD under OF III
Programme. As per the Government policy the Dairy and its Chilling Centres were handed over to
MYMUL on 01.06.1987
2.2 VISION AND MISSION:
Vision:
The vision of MYMUL is to provide quality milk products to the consumers and emerge as
one of the top milk union of the co-operative dairy industry in the country.
Mission:
MYMUL is committed to provide maximum possible price for the milk supplied by its
members and provide necessary inputs to enhance milk production while ensuring economic
viability of the union.
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2.3 Qualitypolicy:
MYMUL is committed to producer’s welfare through customers delight by adopting
continuous improvement and ensure pure and hygienic milk and milk products.
Values:
Honesty
Discipline
Quality
Cost control
Co-operation
Team spirit
Service motive
PRODUCTS DETAILS:
MILK PRODUCTS
Pasteurised Toned Milk Shubha Nandini Double
Toned Milk
Samrudhi Homogenised Cow's Pure Milk Goodlife Milk
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Goodlife Slim Milk Sampoorna Standardised Milk Smart Double Toned
Milk
Goodlife UHT Long Life Milk
Curds & other fermented products
Yoghurt Real Thick Curd Curd Butter Milk
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Premium Curd Large Set Curd Sweet Lassi
Milk powder
Dairy Whitener Skimmed Milk Powder Badam-Powder
Ghee & butter
Ghee in Standy Pouches Butter Salted & Unsalted Ghee In Bag
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Ghee in Pet Jar Ghee in Sachet
Icecream & Frozen Desserts
Crazy Cone Ice Cream Nandini Magic Strawberry Pista Kulfi Butter
Scotch Chocolate
Chocobar IceCream Tasty Anjir IceCream
TastyChocolate
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Ice Cream Delightfully Tasty Ice Cream Delightfully Tasty Kaju Draksh
Vanilla and Strawberry
Ice Cream Delightfully Tasty Mango Ice Cream Delightfully Tasty Kesar Pista
Ice Cream Delightfully Tasty Black Currant Casatta Ice Cream
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Nandini Sugar Free Pro Biotic Frozen Matka Kulfi Food Vanilla
and Strawberry
Ice Cream Delightfully Ice Cream Delightfully
Tasty Butter Scotch Tasty Pineapple
Dolly Stick Ice Cream Raspberry & Orange Ice Candy Mango
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Sundae Ice Cream Strawberry Sundae Icre Cream Butter Scotch
Ball Ice Cream Vanilla Strawberry
Milk Sweets
Mysore Pak Khova Jamoons Dry Fruits Burfi Rossagolla
Assorted sweets gift box Coconut Burfi Vermicelli Payasa Mix
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Chocolate Burfi Nandini Bite Premium Badam burfi
Premium Besan Ladoo Premium Cashew Burfi Pure Milk Elachi and
Kesar Peda
Pure Milk Peda
Other Products
Nandini Cream Process Cheese Spread Cheddar Cheese
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Nandini Sugar Free Peda Diced Paneer Dharwad Peda
Flavoured Milk Pista Mango Strwaberry Flavoured Milk Coolchoco Milk Shake
Flavoured Milk Gulab Jamoon Mix Khova
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Paneer Kunda
Chocolate
creamy bite Eclairs Goodlife Chit Chat
PRICE OF PRODUCTS :
Sl.No. Product Packing Pack SizeMRP per
Pack
1 Assorted Sweets Gift Box 1 Kg Rs.400.00
2 Badam Milk Mix Pouch 500-Gm Rs.150.00
3 Butter Carton 100-Gm Rs.29.00
4 Butter Carton 500-Gm (Salted) Rs.145.00
5 Butter Carton 500-Gm Rs.147.00
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(UnSalted)
6 Butter Milk Tetra pack 200-ML Rs.10.00
7 Cheddar Cheese Pouch 200 Gm Rs.65.00
8 Cheddar Cheese Pouch 1000 gm Rs.270.00
9 Dairy Whitener Pouch 500-Gm Rs.115.00
10 Dairy Whitener Pouch 1Kg Rs.220.00
11 Dairy Whitener Bag 25kg Rs.5000.00
12 Flavoured Milk Badam Tetra pack 200-Gm Rs.17.00
13 Flavoured Milk Pista Tetra pack 200 ml Rs.17.00
14 Flavoured Milk Strawberry Tetra pack 200 ml Rs.17.00
15 Ghee Pouch 500-ML Rs.157.00
16 Ghee PP Jar 1000-ML Rs.320.00
17 Ghee Pouch 1-Ltr Rs.310.00
18 Ghee PP Jar 5-Ltr Rs.1525.00
19 Gulab Jamoon Cont.RTE Tin 500-Gm Rs.80.00
20 Gulab Jamoon Mix Pouch 200-Gm Rs.50.00
21 Ice Cream Anjir 1250 ml Rs.130.00
22 Ice Cream Anjir Buy 1 Get 1 750 ml Rs.136.00
23 Ice Cream Anjir 5000 ml Rs.525.00
24 Ice Cream Anjir / Black Current 5000 ml Rs.525.00
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25 Ice Cream Black Current 1250 ml Rs.130.00
26 Ice Cream Black Current Buy 1 Get 1 750. ml Rs.136.00
27 Ice Cream Black Current 5000 ml Rs.525.00
28 Ice Cream Butter Scotch Buy 1 Get 1 750 ml Rs.115.00
29 Ice Cream ButternScotch 1250 ml Rs.110.00
30 Ice Cream ButterScotch 5000 ml Rs.425.00
31 Ice Cream Chocolate 1250 ml Rs.105.00
32 Ice Cream Chocolate Buy 1 Get 1 750 ml Rs.110.00
33 Ice Cream Chocolate 5000 ml Rs.425.00
34 Ice Cream Kesarpista 1250 ml Rs.145.00
35 Ice Cream Kesarpista 5000 ml Rs.550.00
36 Ice Cream Khajudraksh 1250 ml Rs.115.00
37 Ice Cream Khajudraksh 5000 ml Rs.450.00
38 Ice Cream Mango 1250 ml Rs.100.00
39 Ice Cream Mango 5000 ml Rs.425.00
40 Ice Cream Pineapple 1250 ml Rs.95.00
41 Ice Cream Pineapple 5000 ml Rs.350.00
42Ice Cream Probiotic Sugar Free
Frozen Food500 ml Rs.60.00
43 Ice Cream Strawberry 1000 ml Rs.85.00
44 Ice Cream Strawberry 5000 ml Rs.350.00
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45 Ice Cream Vanilla 1000 ml Rs.85.00
46 Ice Cream Vanilla 5000 ml Rs.350.00
47 Khova Pouch 200-Gm Rs.52.00
48 Nandini Chit Chat ChocolateOuter (44
Bars)Rs.195.00
49 Nandini Creamy Bite ChocolateOuter ( 24
Slabs)Rs.220.00
50 Nandini Eclairs 3.2 Chocolate Jar (550 pcs) Rs.275.00
51 Nandini Eclairs Chocolate 4.5 Jar (220 pcs) Rs.200.00
52 Nandini Good Life ChocolateOuter (44
Bars)Rs.195.00
53 Panner-bulk Pouch 1kg Rs.206.00
54 Set Curd PP Jar 200-Gm Rs.15.00
55 Set Curd PP Jar 400-Gm Rs.27.00
56 SMP Pouch 500-Gm Rs.125.00
57 SMP Pouch 1kg Rs.225.00
58 Sterlized Flavoured Milk Badam Bottles 200-ML Rs.16.00
59 Sterlized Flavoured Milk Pista Bottle 200 ml Rs.16.00
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60 Sugar Free Peda Box 100-Gm Rs.34.00
61 Sweet - Badam Burfi PP Box 250-Gm Rs.130.00
62 Sweet - Belgaum Kunda Tin 250-Gm Rs.60.00
63 Sweet - Cashew Burfi PP Box 250-Gm Rs.120.00
64 Sweet - Dharwad Peda Duplex Carton 250-Gm Rs.60.00
65 Sweet - Dry Fruits Buri PP Box 250 gm Rs.140.00
66 Sweet - ElaichiPeda Duplex Carton 250-Gm Rs.75.00
67 Sweet - Kesar Peda Duplex Carton 250-Gm Rs.80.00
68 Sweet - Mysorepak PP Box 250-Gm Rs.80.00
69 Sweet - Mysorepak PP Box 500-Gm Rs.155.00
70 Sweet - Peda Duplex Carton 250-Gm Rs.75.00
71 Sweet- Besan Ladu PP Box 250-Gm Rs.75.00
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72 Sweet-Chocolate Burfi PP Box 250 gm Rs.80.00
73 Sweet-Coconut Burfi PP Box 250 gm Rs.80.00
74 UHT Good Life Fino 200 ml Rs.9.00
75 UHT Good Life Brick 200 ml Rs.8.00
76 UHT Good Life Fino 500 ml Rs.20.00
77 UHT Good Life Brick 1000 ml Rs.40.00
Objectives of MYMUL:
To provide a guaranteed remunerative milk market round the year for all the marketable sur-
plus of member producers in their villages.
To procure milk, process into good quality milk/milk products and market it most economi-
cally and efficiently to give maximum overall net-returns to the producers and general satis-
faction to the consumers.
To provide essential technical inputs and services to the producers at their door-steps in an
economic and efficient manner and also in a way most acceptable to them.
To build village level institutions co-operative sector to manage the dairy activities.
In order to fulfil these objectives, the union is constantly engaged in working towards improvements
of business as well as the welfare of the producers. This has resulted in greater performance on
commercial as well as in institutional fronts.
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2.4 MYSORE Dairy, complex facts at a Glance.
1 General
Area of the Dairy : 45 acres
Handling capacity : 4.80.00 LPD
Estimated cost of Building : 2.89crores
Number of employees : 320
2 .Milk procurement
Dairy co-operative societies functioning : 895
Dairy societies registered : 936
Procurement routes : 71
Chilling centres : 3
Districts covered : 2
Taluks covered : 11
Villages covered : 2005
3 Milk Distributions
Distribution routes : 47
Districts covered : 2
Selling agents in urban : 510
Selling agents in rural : 450
Milk parlours : 68
City of Palaces and Banana: Here was initiated by the Maharaja, the artificial insemination concept.
This union reciprocated by organizing “Cluster Artificial Insemination (AI) Centres” covering 11
talukas and more than 1288 functional DCSs.
It has chilling centers at Chamarajanagar-60 TLPD, Hunsur-60 TLPD and Kollegala-20 TLPD .Total
chilling capacity 140 TLPD. There is Bulk Milk Collars -49, Automatic Milk Collection-232 and
community milking parlor-15 in the union
The union procures on an AVG 5.63 lac kg/day of milk and sales 2.35 lac litres/per
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Speciality of the Union: Union has launched ground level water storage tanks during drought for
cattle in more than 600 DCS.
Mysore-Chamarajanagar Dist.Co-op.Milk Producers' Societies' Union Limited
2.5 AREA OF OPERATION
MYMUL not only operates in Mysore districts, but, also operates in some parts of Chamrajanagar
District. It operates 502 distribution centres, concerning all the agents besides, there are 2 milk
parlour maintained by the dairy. The area of operation is as under:
Mysore Tq.
T Narasipura Tq.
Nanjanagudu Tq.
H.D.Kote Tq.
Hunsur Tq.
Piriapatana Tq.
K.R. Nagar Tq.
Chamrajanagar District Chamrajanagar Tq.
Gundlupete Tq.
Kollegala Tq.
Yalandoor Tq.
2.6 COMPETITORS INFORMATION
The major competitors of the MYMUL are as follows:
>Jersey
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>Dodla
>Arogya
>Gomatha
>Thirumala
>Swastika
>Loose milk vendors
>Heritage
JERSEY
*Plant at Andhra Pradesh
*Sale in Union Jurisdiction 45 TLPD (Thousands litre per day) (100 TLPD in City)
*M.R.P. rate Rs. 20.00 per litres- seller rate Rs. 22 to based on quantity.
*Commission ranges from 40-70 per litre (good incentive scheme)
*Quality perception-thick and longer shelf life.
*Flexible distribution-retailers, wholesalers or anyone willing to sell.
*Payments cash and carry or while collecting empty crates on return trip.
*Availability mostly retail outlets and now capturing institutional sales by any means.
* Vigorous advertisement especially at the point of purchase.
DODLA:
* Plant at Nellore.
*Availability of raw material at cheaper rate.
*Sale in union Jurisdiction 18 TLPD (Thousands litre per day in city)
*M.R.P rates Rs. 19 per litre- seller rate 22.
*Commission ranges from paisa 40-50
*Quality perception-thick and long shelf life.
*Flexible distribution-retailers or anyone willing to sell
*Returns will be accepted.
*Payment- cash and carry or which collecting empty on return trip.
*Channel members are playing critical role in boosting the sales.
*Packing is attractive with multicolour pricing on sachets
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*Consumers perceives that milk is good for making curds.
AROGYA:
*Plant at Bangalore
*Sale in union jurisdiction 10 TLPD (Thousands litre per day) (25 TLPD in cities)
*MRP Rates Rs. 18.00 per litre.
*Commission ranges from 60 paisa per litre.
*Availability mostly retail outlets like bakeries. Condiments and departmental stores
*Packing is attractive with multicolour printing on sachets.
*Concentrating on value added products and not much on milk.
INFRASTRUCTURE FACILITIES:
Infrastructure facilities in MYSORE MILK UNION LIMITED are in this way.
1. MILK PROCUREMENT
Milk collection from farmers.
Dairy co-operative society.
Bulk milk products.
2. TRANSPORTATION;
They have procurement group contract vehicles.
EG; Milk tanker
3. MILK PROCESSING:
Row milk reception dock
Cream separators
Milk pastures
Stored tanks
Electronic milk tester and milk scan.
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4. PACKING:
Milk packing machine
Curd packing machine
Lassi, masala majjige packing machine
Flavored milk packing machine
Ghee packing machine
5. ENGINEERING:
Reformation equipments
Boiler equipment
Effluent treatment plants
Electronic generation
6.MARKETING:
Distribution network
Agents
Parlors
Depots
Franchise
7. DISTRIBUTION TRANSPORT:
Trunks
Auto
Mobile van
Following is the general information of MYSORE MILK UNION LIMITED
plant in Mysore:
Area of the Dairy : 45 acres
Handling capacity : 2, 74,000 LPD
Estimated cost of Building : 2.89 crores
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Number of employee : 380
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ACHIEVEMENT /AWARD:
80 Nandini sales and distribution camps have been arranges.
5850 cattle have been purchased for milk producers under different schemes to the
government.
Producers are being paid their amount every week without delay.
Cost reduction has been purchased for minimizing the electricity and oil.
24 hours service has been provided at the main entrains of the dairy.
ISO9001-2000 has certified it.
MYSORE MILK UNION LIMITED bags the prestigious “National Energy Conservation
Awards 2005” Mr. A. S. Premnath Managing Directors MYSORE MILK UNION LIMITED
received the award from his Excellency president of India on 14TH December 2000.
MYSORE MILK UNION LIMITED has got two awards: they are
1. ISO 2001-2000
2. National Energy Conservation award from president of India in 2005.
ENERGY CONSERVATION ACHIEVMENT: during 02-05, Mysore dairy has implemented
Energy saving projects through engineers, initiatives, sub section team suggestion and innovative
ideas by officers and has achieved savings of RS.28.2 lakh with a resulting in 14.37% reduction in
specific electrical energy consumption and 17.58 % in specific thermal energy consumption.
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J)WORK FLOW MODEL
Primary Milk Producers
:
Milking
Villages’ dairy co-op. society
Transportation
Dairy/Chilling centers
Security check
Milk reception dock
Quality check of incoming milk
.
Good milk received
Quality check (fat SNF)
Chilling milk
Processing
Production section Packing section…
Dispatch through transport vehicle
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FUTURE GROWTH AND PROSPECTS:
1.Milk procurement enhance activities like introduction of new societies formation of BMCs
(bulk milk coolers) providing, training on various production enhancement activities, clean milk
production, good animal husbandry.
Marketing:
Allotting more agencies opening new parlors and depot, conducting various
comparative like children drawing
Competition, then arranging dairy visits for school, college children consumers and farmers.
Dairy plant:
Expansion of processing capacity, installation of new equipment, making processing and packing
facilities at chilling centers.
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Mckensy’s 7 Frame work theory applied to K.M.F.
INTRODUCTION:
The 7-s model is better known as McKenzie 7s. This was developed by Tom Peters and
Robert Waterman who had been consultants at the firm “McKenzie”. They published their 7-S model
in their article “structure Is Not Organization” (1980) and in their books “The Art of Japanese
Management”91981) and” In Search of Excellence” (1982). Just as the 7wonders of the world serve
as the mirror to world’s beauty, so does these 7elements constitute the entire company as a whole.
The model starts on the premise that an organization is not a Structure but consists of seven
elements namely:
1. STRUCTURE
2. SYSTEM
3. STRATEGY
4. SKILLS
5. STYLE
6. STAFF
7. SHARED VALUE
These seven elements are distinguished as, so called, hard S’s and soft S’s. The hard
elements are feasible and easy to identify. They can be found in strategy statements, corporate plans,
organizational charts and documentation.
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The four soft S’s however, are hardly feasible. They are difficult to describe since
capabilities, values, and elements of corporate culture are continuously developing and changing.
They are highly determined by the people at work in the organization. Therefore, it is much more
difficult to plan or to influence the characteristics of the soft elements.
DESCRIPTION
THE HARD S’s
Strategy: Actions of company plans in response to or anticipation of changes in its
external environment.
Structure:Basis for specialization and co-ordination influenced primarily by strategy and by
organization size and diversity.
System: Formal and Informal procedures that support the strategy and structure.
THE SOFT S’s
Style/culture: the culture of organization consists of two components:
1. Organization culture : the dominant values and beliefs, and norms, which develop
features of organizational life.
2. Management style: Fundamental responsibility of managers.
Staff:Human Resource Management-processes used to develop managers, ways of basic
values of management cadre and ways of introducing young recruits to the company.
Skills: The distinctive competencies and ways of expanding or shifting competencies.
Shared Value:Guiding concepts, fundamental ideas around which a business is builtmust be
simple, have great meaning inside the organization even though outsiders may not see or
understand them.
1. STRUCTURE:
A structure describes the hierarchy of authority and accountability in an organization these
relationships are frequently diagrammed in organizational charts. An organization’s structure can be
deemed as the skeleton of the whole concern. A clearly defined or designed organizational structure
goes a long way in shaping the hierarchy, authority-responsibility relationships between the
personnel of the concern.
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Organizational structure in MYSORE MILK UNION LIMITED can be viewed as having an
established pattern of relationship among the components of the organization. The organizational
structure in MYSORE MILK UNION LIMITED is well planned. The function and objective of the
organization are brought to the notice of the employees. The authority and responsibility are properly
assigned and therefore the rest is carried on smoothly.
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Organization Chart:
JSSATE-BANGLORE Page 36
Board of Directors
President
Managing Director
Administrative
Officer
Financemanager
ManagerDairy
Marketing manager
ManagerProcurem
ent
MISmanager
Deputy Mgr Procurement
DeputyMgr Input
DistributionWing
Development wing
Deputy Mgr
Quality
EmployeeEmployee Employee Employee Employee Employee
Deputy Plant mgr
Customer satisfaction on KMF
2. SKILLS:
Definition:
A skill is the ability, knowledge, understanding and judgement to accomplish a
task. Skills may be defined as what the company does best; the distinctive capacities and
competencies that reside in the organization. It can be deemed as the lubricant which keeps the
wheels of the organization running.
The skills expected from employees may vary according to the job. There is certainly a sea
level of difference between the skills of an employee at the milk reception desk and the deputy
manager at any of the departments.
For recruiting and selecting the manpower required by the production department the criteria
would be, B.Tech (Dairy Technology) and Bachelor of engineering(B.E) for maintenance of boilers
who have the capabilities and competencies to handle the functioning of work smoothly.
3. STYLE:
Definition:
Style is the leadership approach of top management and the organization’s overall operating
approach. It is also the way in which the organization’s employees present themselves to the outside
world, to suppliers and customers.
Style expresses the nature of an organization. It is the face of organization and its
functioning. Style of leadership or relationship is the manner in which an individual is given
importance to his or her talents, values, knowledge, judgment and attitude to lead and relate to
others.
The organization believes in placing the employees in the right jobs.
The organization believes in giving the employees authority and confidence in
decision-making.
The organization believes in seeing to it that the employees are able to grow to meet
both their own needs and the needs of MYSORE MILK UNION LIMITED group.
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MYSORE MILK UNION LIMITED has followed top to bottom or top-down style system.
The styles of the organization is said to follow the participative type that is the management cadre
follow the participative type of administration.
MYSORE MILK UNION LIMITED has a three-tier structure. Three-tire structure depicts the flow
of authority in the organization.
THREE TIER STRUCTURE
TOP MANAGEMENT
MIDDLE MANAGEMENT
FUNCTIONAL LEVEL MANAGEMENT
TOP MANAGEMENT-Board of directors (policy making)
MIDDLE MANAGEMENT- Managing Director (implementation of policies) FUNCTIONAL
LEVEL MANAGEMENT- Workers (execution of the policy)
4. STRATEGY:
Definition:
Strategy, in simple terms can be understood as the course of action. It is a plan that an organization
formulates to gain a sustainable advantage over the competitors. Strategy is an art of devising and
employing a system of activities that mobilizes all resources towards the goal.
A strategy is the determination of the basic long-term goals and objective of an enterprise and
the adoption of the course of action and allocation of resources necessary for carrying out these
goals.
Below mentioned are a few strategies followed at MYMUL:-
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Pricing Strategy:
The activity of fixing the price of the product is done by the KMF. It fixes a common price
for the products through out the state on obtaining the approval from the government. MYMUL
follows only that price to sell its products.
Promotional Strategy:
The promotional activities done by MYMUL are
Wall paintings, advertisement through cable network, awareness programmes and door to
door campaign.
Customizing the products with respect to their package, quantity and price in tune with the
demands.
Providing incentives to the retailers who bring required sales during the flush season(20paise)
Round the clock availability of the products is ensured through ‘anytime parlors’.
School children and other students are encouraged to visit the plant to gain an insight into the
operations
Getting brand recognition through popular modes of advertising (cine star upendra as brand
ambassador). .
5.SYSTEM
A system is defined as a process, or a set of processes, that links activities and goals to be
achieved. System in simple words is the formal and the informal procedure, including compensation
system, management information system, performance management system, and capital allocation
system that govern everyday activities.
Systems maintained at MYMUL are:
Inventory Control System:
o MYMUL maintains the FIFO (first in first out) method to control the inventory in the
plant. As MYMUL being a dairy processing industry whose products have a shorter
shelf life, it makes no sense to follow LIFO or any other system.
o
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Milk Billing System:
o MYMUL maintains a weekly milk billing system. It has four cycles in a month. They
are from 1-7, 8-15, 16-23 and 24 to the end of the month.
Accounting System:
o Currently MYMUL is using Tally 7.2 version as the accounting software with VAT
6. STAFF:
Definition:
Staffing is nothing but keeping the positions fixed in the structure. Staffs, the people in the
organization are treated in two ways. Pay scales, Appraisal systems, Manpower Planning systems etc
and at the soft end it refers to morale, attitude of the people towards their work and the
company .The top manager does not pay attention for the development of the general staff, but is
concentrates more on the development of managers for performing more efficiently.
Classification of staff in MYSORE MILK UNION LIMITED is as follows:
Technical Officers -------------- Studies dairy technology
Supervisory Officers -------------- Look after the job done by workers
Clerical Officers -------------- Carry out the paper work
Benefits provided by the MYSORE MILK UNION LIMITED to its employees
Housing facilities for technical officers near the plant
Traveling facilities
Bonus – once in a year.
Medical facilities
Primary education for the employee’s children.
Canteen facility – full meals for Rs 3. Coffee and tea for 60 Ps and Break fast for just 1.20
Rs.
Twice the year, ghee is given free for the employees
DA for permanent employees as per State Govt.
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Uniform for employees – once in a year
Free training programme is conducted
Subsidy milk to the workers
At present there are around 380 workers as against the permitted limit of 450 workers,
employed on both regular and contract basis.
7. SHARED VALUE:
Shared value or super ordinate goals refers to a set of value and aspirations that goes beyond
the conventional formal statement of corporate objective. There are the fundamental ideas around
which business is built. They are the identity by which a company is known throughout its business
area. These values must be explicitly stated as both corporate objectives and individuals values. A
shared value is an essential characteristic or attribute promoted by the organization to motivate the
behavior of members of the organization.
Some of the shared values in MYMUL are:
1. Honesty 4. Trust
2. Discipline 5.Cost effectiveness.
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SOWT ANYSIS
Strengths:
Nandini enjoys good brand image. mysore milk union is one the leading producer of milk
products & it has wide area of Market, “Nandini” is a trusted house hold brand name, more
than two lakhs farmer members were supplying milk.
It has large procurement system.
Huge infrastructure for processing.
Competitive prices for all products.
Wide distribution network leads to regular and timely supply.
It enjoys highest market shares in the packed milk segment.
Provides excellent veterinary, vaccination, Extension facilities, Feeds and Fodder seeds sup-
ply 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.
Has earned the distinction of not failing to deliver the milk to market on time throughout the
year. There are days with no power supply, no water supply; but there is no day without
NANDINI milk supply.
MYMUL is giving highly remunerative and timely payment to its producers & this has a
good on suppliers and made Union to be in good financial position.
ISO 9001-2000 certificate.
Good institutional support from KMF, NDDB, by giving financial support and guidance to
the MYMUL. MYMUL is equipped with fully automatic systems which ensure total quality
maintenance.
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Weaknesses:
Lack of flexibility in deciding about its operation. No authority over issues like pricing, offer-
ing volume discounts etc. The president of KMF and the Board of directors MYMUL decides
it.
Perishable commodity. Milk is Perishable commodity it cannot be store in long.
Lack of professional manpower. In MYMUL department heads are not based on qualifica-
tion.
Bureaucratic method of functions.
Lacking quality consistency because of seasonal changes in the supply of milk.
Less buffalo milk. Because of which customers preferring buffalo milk may get attracted to
other brands.
Inadequate sales promotional activity.
Due to bad smell that persists causes low sales.
Some private dairies are selling homogenized milk, which appears rich. The union cannot ho-
mogenize all its huge quantity of milk due to lack of homogenizing capacity and increase in
processing cost.
MYMUL Organizational structure does not permit incentive/ reward for good performance of
an employee.
MYMUL Company should distribute their product directly to sellers without keeping any
middlemen and agents because part of profit is divided between middlemen and agents .
About 65-70% of the marketing is done directly the rest of 35-40% is done using middle
men.
Opportunities:
There is a phenomenal scope for innovation in product development, packing and presenta-
tion.
Steps to taken to introduce value added products like shrikhands, ice-creams, paneer, khoa,
flavored milk, dairy sweets etc. this will lead to a greater presence and flexibility in the mar-
ket place along with the opportunities in the field of brand building.
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Yet another aspect can be the addition of infant foods and nutritionals.
Increasing market demand for milk and milk products.
There is scope for developing in unexplored areas for milk processing as Nandini can extend
its equity of brand.
Addition of buffalo milk will improve market share.
Since the MYSORE district is under Cauvery basin, perennial greens are available to the cat-
tle. This makes the farmers to rare the cattle easily from this MYMUL is getting huge amount
of milk.
Institutional markets, bakeries, hotels etc., are not fully tapped and these can be captured
preferably by direct marketing.
Diversification of milk products like Peda, Mysore Pak, cashew burfi, lassie, milk powders,
masala majjige.
Exploit the “Human Face”, by positioning in the market as an organization with social re-
sponsibilities of serving the milk produced by paying remunerative price and serving cus-
tomer by offering hygienic quality product at a reasonable price throughout the year. Union is
not in the business to maximise the profit as in the case of private dairies and is acting as
price stabilizing force in the market. Projecting these to the customers will reinforce the posi-
tive image of the organization in customer’s minds as a caring organization which service to
them as its motto.
MYMUL is SELLING its products to different states like Tamilnadu, Kerala and An-
drapradesh
Threats:
Increase of competitor's milk vendors in organized sector.
Flexibility in commission structure by competitors may attract the distributors.
No entry barriers for private players.
Low level of consumer awareness in MYSORE and surrounding areas.
After liberalization, entry barriers in the dairy industry eased for new entrants.
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The competition from Co-operatives like Dodla, Heritage, Kamadenu, they producing differ-
ent milk products which are giving a good competition to the MYMUL, etc.
Private dairies procure milk at low 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 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.
Plans of major companies like Reliance, ITC to enter into milk market in future.
FINACIAL STATEMENT ANALYSIS
KMF
Balance Sheet
------------------- in Rs. Cr.
-------------------
Mar '12 Mar '11 Mar '10
12 mths12
mths12
mths
Sources Of Funds
Total Share Capital 11.1 10.77 10.77
Equity Share Capital 11.1 10.77 10.77
Share Appli-cation Money 0 0 0
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Preference Share Capital 0 0 0 Reserves -7.91 -9.25 -9.25
Revaluation Reserves 0 0 0
Networth 3.19 1.52 1.52 Secured Loans 0 2.09 3 Unsecured Loans 1.29 0.65 0
Total Debt 1.29 2.74 3
Total Liabili-ties 4.48 4.26 4.52 Mar '12 Mar '11 Mar '10
12 mths12
mths12
mths
Application Of Funds
Gross Block 0.1 0.07 0.07
Less: Accum. Depreciation 0.04 0 0
Net Block 0.06 0.07 0.07
Capital Work in Progress 0 0 0
Investments 0.87 0 0
Inventories 0 0 0 Sundry Debtors 1.08 1.19 1.19
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Cash and Bank Balance 0.02 0.24 0.1
Total Current Assets 1.1 1.43 1.29
Loans and Advances 2.95 2.8 3.17 Fixed De-posits 0 0 0
Total CA, Loans & Ad-vances 4.05 4.23 4.46 Deffered Credit 0 0 0
Current Lia-bilities 0.49 0.02 0
Provisions 0.01 0.02 0.02
Total CL & Provisions 0.5 0.04 0.02
Net Current Assets 3.55 4.19 4.44
Miscella-neous Ex-penses 0 0 0
Total Assets 4.48 4.26 4.51
Contingent Liabilities 0.16 0.16 0
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Customer satisfaction on KMF
Book Value (Rs) 2.87 1.37 1.37
PART-B
THEORITICAL BACKGROUND
Customer satisfaction
The current global business environment is extremely competitive. Today’s consumers are more
than willing to switch from supplier to supplier in search of better service or courtesy, or better
product availability features or for any other variety of reasons. To attract and retain customers,
effective organization need to focus on determining and then providing what there customer wants
and values. Advertisement market positioning, product/service imaging, discounting, crisis handling,
and others methods of attaching the customer attention are not enough.
Understanding the customer’s needs and expectation is essential to winning new business and
keeping existing business. An organization must give its customer a quality product or service that
meets their needs at a reasonable price. Which includes on time delivery and outstanding service? To
attain this level, the organization needs to continually examine their quality system to see if it is
responsive to ever changing customer requirements and expectation.
DEFINITIONS OF CUSTOMER SATISFACTION
Philip kotler defines customer satisfaction as follows:
“Satisfaction is a persons feeling of pleasure or disappointment resulting from comparing a products
perceived performance in relation to his or her expectation”
Brown defines customer satisfaction as “the state in which customer needs. wants and expectation
throughout the product or service life are met or exceeded resulting in repeat purchase, loyalty and
favorable word of mouth”
Customer satisfaction is a difficult concept to define. However, the following ideas are usually
considered to be fundamental in achieving customer satisfaction.
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The product or service must meet customer needs, wants and expectation for quality and
functionality. It doesn’t matter how much advertisement is done or after sales support
provided. A shoddy product that doesn’t work or falls apart will disappoint. Service
delivered by an unenthusiastic, moody employee will leave the customer feeling let down.
Sales and promotional activities need to create a positive experience for the customer. For
example, the attitudes of employee who make contact with customer should be positive
and professional.
After sales service should also be positive and appropriate (e.g. user training, help lines,
servicing). Customer often needs reassurance after they have bought something that they
have made the right choice, or help in using a product properly.
Customer satisfaction seems simple enough, and yet it is far from simple. Customer satisfaction is
not an objective statistic but more of a feeling or attitude although certain statistical pattern can be
developed to represent customer satisfaction, it is best to remember that people’s opinion and
attitudes are subjective by nature.
Because customer satisfaction is subjective, it is hard to measure. There are so many facts to a
customer’s experience with a product and service that need to be measured individually to get an
accurate total picture of customer satisfaction. Whether or not a customer is satisfied cannot be
closed as a yes or no answer. Errors can occur when customer satisfaction is simplified too much.
Since customer satisfaction is hard to measure, the measurement often is not precise. As with
most attitudes, there is variability among people, and often within the same person at different times.
Often due to the difficult of measuring feelings, customer satisfaction strategies are developed
around clearly stated, logically customer opinions, and the emotional issues of a purchase are
disregarded, this can be a costly mistake.
Customer satisfaction should not be viewed in a vacuum, for example, a customer may be
satisfied with a product or service and therefore rate the product or service. highly in a survey. And
yet that same customer may buy another product or service. It is of little benefit to understand a
customer views about a product service. It is of little benefit to understand a customer views about a
product service if the customer’s views about competitors’ product or service are not understood.
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The value customer place on one product compared to another may be a indicator of customer
loyalty. Customer loyalty can be sustained only by maintaining a favorable comparison when
compared with competitors.
DELIVERING CUSTOMER VALUE AND SATISFACTION
Given the importance of customer value and satisfaction what does it take to produce and
deliver it? To answer this, we need to introduce the concepts of value chain and value delivery
systems.
Customer satisfaction is the level of person’s felt state resulting from comparing a product’s
perceived performance (or outcome) in relation to the person’s expectations. Thus the satisfaction
level is a function of the difference between perceived performance and expectations.
If the performance exceeds expectations, the customer is delighted. Customers who are just
satisfied will find it easy to switch suppliers when a better comes along. On the other hand,
customers who are delight are much less ready to switch as delight creates an emotional affinity with
the brand and just rational preference, and this creates high customer loyalty.
After purchasing the product, the consumer will experience some level of satisfaction or
dissatisfaction. The marketer’s job does not end when the product is bought. Marketers must monitor
customer satisfaction
What determines whether the buyer will be highly satisfied, somewhat satisfied, or
dissatisfied with a purchase? The buyer’s satisfaction is a function of the closeness between the
buyer’s expectation and the product perceived performance. If performance falls short of
expectations, the customer is disappointed, if it meets the expectation, the customer is satisfied; if it
exceeds expectations, the customer is delighted. These feelings make a difference in whether the
customer buys the product again and talks favorably or unfavorably about the product to others.
Consumers from their expectation on the basis of message received from sellers, friends and
other information sources. The greater the gap between expectation and performance the greater the
consumer’s dissatisfaction. Here the consumer’s coping style comes into play some consumers
magnify the gap
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When the product is not perfect and they are highly dissatisfied. Other consumers minimize
the gap and are less dissatisfied.
The importance of post-purchase satisfaction suggests that product claims must truthfully
represent the products likely performance. Some sellers might even understate performance level so
that consumer experience higher than expected satisfaction with the product
The consumer’s satisfaction or dissatisfaction with the product will influence subsequent
behavior. If the consumer is satisfied, he or she will exhibit a higher probability of purchasing the
product again. The satisfied customers will also tend to say good things about the brand to others.
IMPORTANT OF CUSTOMER SATISFACTION
The modern business environment is characterized by increasing competition and therefore
increasing customer choice due to the trends such as:
Greater freedom of international trade and globalization makers
Are no longer the preserves of local or national companies who can afford to be complacent
about their customers
E - Commerce and interest marking- business can reach customer around the world every
minute of the day.
Increasingly customer confidence in complaining.
De-regulation of market (i.e, allowing new entrants to markets previously run by
monopolies).
Here are some principles given by Steve smith.
The goal is to exceed customer expectation.
The more the employee satisfaction, the more the customer satisfaction.
Customer satisfaction is necessary, but not sufficient how many times do satisfied customer
switch brands? Answer, a lot.
All initiative must be derived from defined problems. For instance, dissatisfied customers don’t
buy. That’s an example of a clear problem.
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Initiative must produce either measurable or conceptual benefits. Distinguish between the two
benefits types.
Rather than blanket initiatives for everyone, outline initiatives for each level of management.
Keep expectations in line with the manager’s span of control.
Distinguish between goals and objectives.
The plan must be resonate with the VP and at least a minority of managers who agree with the
objective and initiative.
The plan must be clear and congruent
The following items amplify customer satisfaction given by Steve smith
Quality of a company’s product and services.
Quality of the relationship between the co agent the customer.
Responsiveness
Thoroughness
Creativity
Demonstrations of the company’s value to someone whose opinion counts.
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2.1 ANALYSIS AND INTERPRETATION
Table No.4.3 Showing the distribution of respondents, according to Gender
Gender No of Respondents Percentage
Male 42 42
Female 58 58
Total 100 100
0
10
20
30
40
50
60
NO OF RESPONDENT PARTICIPATED IN SURVEY
Male Female
INTERPRETATION
From the above table indicates that 42% male respondents and 58% female respondents are involved
in survey.
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1.How did you know about Nandini products?
PRODUCTS No OF
RESPONDENTS
PERCENTAGE
Advertisements22 22
Recommended by family
45 45
Company promotional
schemes 13 13
Agents
20 20
No OF RESPONDENTS05
101520253035404550
Advertisements
Recommended by family
Company promotional schemes
Agents
INTERPRETATION
From the above table 9% of the respondents are 13% of the aware of nandini milk and milk and
products through company promotion, 22% advertisements, 45% through family, 20% agents.
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2) Which Nandini milk products are you presently using?
No OF RESPONDENTS PERCENTAGE
Milk 62 62
Peda 15 15
Masala majjige 11 11
Ghee 12 12
Milk Peda Masala majjige Ghee0
10
20
30
40
50
60
70
No OF RESPONDENTS
No OF RESPONDENTS
INTERPRETATION
From the above table 62% of respondents are using milk, 15% are using peda, 11% are using
masala majjige, 12% are using ghee.
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3) Since how many years you have been the customer of Nandini?
No OF YEARS No OF RESPONDENTS PERCENTAGE
1 YEAR 9 9
3 YEARS 22 22
5 YEARS 38 38
8 YEARS 31 31
1 YEAR 3 YEARS 5 YEARS 8 YEARS0
5
10
15
20
25
30
35
40
No OF RESPONDENTS
No OF RESPONDENTS
INTERPRETATION
From the above table 9% of the respondents are using from 1 year, 22% of the respondents are using
from 3 years, 38% of respondents are using from 5 years, 31% of respondents are using more than 8
years,
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4) Which type of Nandini milk you are using?
TYPES OF MILKS NUMBER OF
RESPONDENTS
PERCENTAGE
Standardized milk 19 19
Toned milk 42 42
Samurudhi milk 11 11
Homogenized milk 20 20
Good life milk 8 8
NUMBER OF RE-SPONDENTS
05
1015202530354045
Standardized milkToned milkSamurudhi milkHomogenized milk Good life milk
INTERPRETATION
From the above table, 19% of the respondents are using standardized milk, 42% are using toned
milk, 11% are using samurudhi milk, 20% are using homogeneous milk, and remaining 8% of the
respondents are using full cream Good life milk.
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5) How do you feel about the taste of Nandini milk products?
SATISIFACTION LEVELS
ON TASTE
NUMBER OF
RESPONDENTS
PERCENTAGE
Excellent 18 18
Very good 26 26
Good 52 52
Average 4 4
NUMBER OF RE-SPONDENTS
0
10
20
30
40
50
60
ExcellentVery good Good Average
INTERPRETATION
From the above table, according to the satisfaction level, 52% of the respondents were satisfied
with Nandini milk and milk products and dissatisfaction level is 2% only.
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6) Why do you prefer Nandini products?
Comparison with other
Products No OF RESPONDENTS PERCENTAGE
Taste 24 24
Price 28 28
Quality 38 38
Hygiene packaging 10 10
INTERPRETATION
From the above table it is clear that 24% of the respondents consider taste, 38% quality to
purchase Nandini products against other brand, 28% were consider price and remaining 10% of
people prefer to hygiene packing services.
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No OF RESPONDENTS0
5
10
15
20
25
30
35
40
Taste
Price
Quality
Hygiene packaging
Customer satisfaction on KMF
7) How do you perceive about the quality of Nandini milk products?
SATISIFACTION LEVELS
IN QUALITY
NUMBER OF
RESPONDENTS
PERCENTAGE
Excellent 22 22
Very good 19 19
Good 48 48
Average 11 11
NUMBER OF RESPONDENTS05
101520253035404550
Excellent
Very good
Good
Average
INTERPRETATION
From the above table it is clear that level of quality 22% are felt excellent, 19% are felt very good,
48% are felt good, only 11% are felt average.
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8) What do you think about the pricing policy of the Nandini milk products?
RESPONSE ON MILK
PRICING
NUMBER OF
RESPONDENTS
PERCENTAGE
Expensive 22 22
Moderate 38 38
Reasonable 36 36
low cost 4 4
INTERPRETATION
From the above tableresponses of consumer on price policy 22% feel expensive, 38% are feel
moderate, 36% are reasonable and low cost feel are 4%.
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NUMBER OF RESPONDENTS0
5
10
15
20
25
30
35
40
Expensive
Moderate
Reasonable
low cost
Customer satisfaction on KMF
9) HOW do you feel about the packaging of Nandini milk products?
SATISIFACTION LEVELS
IN PACKAGINIG
NUMBER OF
RESPONDENTS
PERCENTAGE
Excellent 18 18
Very good 26 26
Good 42 42
Satisfactory 14 14
NUMBER OF RESPONDENTS05
1015202530354045
Excellent
Very good
Good
Satisfactory
INTERPRETATION
From the above table it express It clear that, 18% are response packaging of milk is excellent, 26%
are think very good, 42% are feel good and 14% are satisfied with packages.
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10) Do you feel the packaging of Nandini milk products is attractive?
Package appearance No OF RESPONSE PERCENTAGE
Yes 56 56
No 44 44
No OF RESPONSE0
10
20
30
40
50
60
Yes
No
INTERPRETATION
From the above table and graph it is clear that 56% of respondents are influenced by outer
appearance of the product while remaining 44% are not influenced.
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11) Which of the following Nandini milk products do you prefer?
Preferences No OF RESPONSE PERCENTAGE
Curd 27 27
Lassie 7 7
Badam powder 9 9
Peda 17 17
Masala majjige 18 18
Ghee 10 10
Mysore pak 12 12
No OF RESPONSE0
5
10
15
20
25
30
Curd
Lassie
Badam powder
Peda
Masala majjige
Ghee
Mysore pak
INTERPRETATION
From the above table clears 17% of the consumer purchase peda and 27% of curd while
masala majjige is 18% &12% of Mysore pak, 9% of badam powder, 7% lassie is the least
preferred product.
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12) Are you satisfied with Nandini milk products?
Discounts and other schemes No OF RESPONDENTS PERCENTAGE
Yes 82 82
No 18 18
No OF RESPONDENTS0
102030405060708090
Yes
No
INTERPRETATION
From the above table 82% are satisfied with Nandini milk products and other 18% are still not
satisfied.
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13) Which other brands do you prefer?
Other brands No OF RESPONDENTS PERCENTAGE
Jersey 42 42
Arogya 15 15
Thirumala 10 10
Other 33 33
No OF RESPONDENTS05
1015202530354045
Jersey
Arogya
Thirumala
Other
INTERPRETATION
Above table show the, if other than Nandini 42% jersey, 15% arokya, 10% Thirumala and
remaining 33% others.
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2.2 SUMMARY OF FINDINGS:-
FINDINGS:
In this survey being undertaken, 58% respondents are female while remaining 42% of them are male.
Majority of them are customer of Nandini since 82% of consumers satisfied with Nandini products
due to the taste, fresh.
1. It indicates 13% of the aware of nandini milk and milk and products through company
promotion, 22% advertisements, 45% through family, 20% agents.
2. It indicates 62% of respondents are using milk, 15% are using peda, 11% are using masala
majjige, 12% are using ghee.
3. It indicates 9% of the respondents are using from 1 year, 22% of the respondents are using
from 3 years,38% of respondents are using from 5 years, 31% of respondents are using more
than 8 years,
4. It indicates 19% of the respondents are using standardized milk, 42% are using toned milk,
11% are using sammrudi milk, 20% are using homogeneous milk, and remaining 8% of the
respondents are using good life milk.
5. It shows satisfaction level of taste 18% are felt excellent, 26% are felt very good, 52% are felt
good, only 4% are felt average.
6. In this regard it is possible to infer that 24% of consumers purchase the product based on
taste. 10% Hygiene packaging. 28% price. 38% quality.
7. It shows satisfaction level of quality 22% are felt excellent, 19% are felt very good, 48% are
felt good, only 11% are felt average.
8. As per responses of consumer on price policy 22% feel expensive, 38% are feel moderate,
36% are reasonable and low cost feel are 4%.
9. It clear that, 18% are response packaging of milk is excellent, 26% are think very good, 42%
are feel good and 14% are satisfied with packages.
10. It is clear that 56% of respondents are influenced by outer appearance of the product while
remaining 44% are not influenced.
11. From the above table 17% of the consumer purchase peda and 27% of curd while masala
majjige is 18% &12% of Mysore pak, 9% of badam powder, 7% lassie is the least preferred
product.
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12. According to survey 82% of people are satisfied with Nandini products and remaining 18%
are not satisfied.
13. As per the response received the consumer prefers other than Nandini that 42% jersey, 15%
arokya, 10% Thirumala and remaining 33% others.
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CONCLUSION AND RECOMMENDATIONS:-
SUGGESTION AND RECOMMENDATION:
1. As per survey being made popularized of Nandini products is more than compared to other
existing in order to survive in the market aggressive advertising has to be undertaken.
2. Nandini sweet products like peda, mysorepak can be promoted in school by undertaking
special campaign.
3. Special offer may be provided to dealer and retailer in order to motivate to them sale more.
4. Can open special counter inside supermarkets like Bigbazer, Loyal world, more.
5. Can open new parlors due to increase availability.
6. Give more offers and discount to attract the customer.
7. Modification in advertisement department.
8. Increasing the quality of the product.
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CONCLUSIONS:
Nandini brand has a good image in the market. Majority of the consumer are using Nandini
milk. Nandini milk products available on time to the customer for daily use. In the market best
quality milk is Nandini. Nandini brand is having good position in the market. Customers have good
opinion about Nandini milk products hence. Customer satisfaction towards Nandini milk products
holds good. Majority of respondents have seen Nandini milk advertisement in television. Advertising
plays a major role in creating a brand image and it helps in increasing the sales. Majority of
respondents are loyal to Nandini products through number of other brand are available in the market.
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ANNEXURE
QUESTIONNAIRE
Dear sir/ madam
As a part of MBA curriculum, a survey on the K.M.F. Nandini product has been undertaken to
understand the profit of customer satisfactory.
NANDISH.H.N of Final year MBA student from the College of JSS ACADEMY OF TECHNICAL
EDUCATION,BANGLORE (Marketing) request you to co-operate in responding in this
questionnaire. The information collected will be confidential and used for the academic purpose
only. Please fill this questionnaire, which, will be helpful for my project work.
Name :
Address :
Age :
Number of household :
Qualification :
Occupation :
Monthly income :
1) How did you know about Nandini products? a) Advertisements ( ) b) Recommended by family ( )
c) Company promotional schemes ( ) d) Agents ( )
2) Which Nandini milk products are you presently using? a) Milk ( ) b) Peda ( ) c)Masala majjige ( )
d) Ghee ( ) e) Other ( )
3) Have you heard and used Nandini brand of milk products?
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a) If yes, since how long you are using Nandini products?
a) 1year ( ) b) 3 years ( )
c) 5 years ( ) d) 8 years ( )
b) If no, what is the reason for not using Nandini brand?
a) Never heard of Nandini ( ) b) Poor quality ( )
c) Irregular supply ( ) d) Not available at right price ( )
4) Which type of Nandini milk you are using?
a) Standardized milk ( ) b)Toned milk ( )
c) Samurudhi milk ( ) d) Homogenized milk ( )
e) Good life milk ( )
5) HOW do you feel about the taste of Nandini milk products?
a) Excellent ( ) b) Very good ( )
c) Good ( ) d) Average ( )
6) Why do you prefer Nandini products?
a) Taste ( ) b) Hygiene packaging ( )
c) Price ( ) d) Quality ( )
7) HOW do you perceive about the quality of Nandini milk products?)
a) Excellent ( ) b) Very good ( )
c) Good ( ) d) Average ( )
8) What do you think about the pricing policy of the Nandini milk products?
a) Expensive ( ) b) moderate ( )
c) Reasonable ( ) d) low cost ( )
9) HOW do you feel about the packaging of Nandini milk products?
pa) Excellent ( ) b) Very good ( )
c) Good ( ) d) Satisfactory ( )
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10) Do you feel the packaging of Nandini milk products is attractive?
a) Yes ( ) b) No ( )
11) Which of the following Nandini milk products do you prefer?
a) Curd ( ) e) Lassie ( )
b) Peda ( ) f) Flavoured milk ( )
c) Masala majjige ( ) g) Mysorepak ( )
d) Ghee ( ) h) Badam powder ( )
12) Are you satisfied with Nandini milk products?
a) YES ( ) b) NO ( )
13) Which other brands do you prefer?
a)Jersey ( ) b)Arogya ( )
c) Thirumala ( ) d) Other ( )
Any Suggestions
…...............................................................................................................................
…...............................................................................................................................
Thank you
Date of interview Signature
…........................... ..................................
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BIBLIOGRAPHY:
PHILIP KOTLER – Marketing Management – Asoke.K. Ghosh , prentice – Hall of India Pvt
Ltd 11th Edition , 2004
Dr.C.B.Gupta , Dr.N.Ranjan Nair – Marketing Management sultan chand and sons , 6th
Edition 2001
Nayar – Marketing Management – S Chand and company limited – 1981 New Delhi.
P.S.V. Rao – Marketing Concept – Knonork Publication Private Limited 1987 New Delhi.
Websites
- http://www.nandinimilk.com
- http://www.dairyindia.com
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