sudha project

Distributor’s perception and satisfaction level about sudhaREPORT SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT

FORINTEGRATED MASTER OF BUSINESS ADMINISTRATION

BY

MAMTA KUMARI(IMBA/3019/11)

UNDER THE GUIDANCE OF

INDUSTRY GUIDE COLLEG GUIDE

MR.R.PRASAD PROF. A.K MAHANTY

(Chief Executive)(H.O.D, Management,)(Project Dairy, Dehri on sone)B .I.T, Allahabad

DECLARATION

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I hereby declare that the project entitled “distributors perception and satisfactionlevel about sudha”is an original and authentic work done by me and is based upon the study conducted by me.

This project report was undertaken as a part of IMBA programme of BIT,Mesra,Ranchi.

Mamta kumari

(IMBA/3019/11)

TABLE OF CONTENTS.no Topic Page no.

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1 Acknowledgement 04

2 Executive summary 05

3. Introduction to Indian Diary Industry 6-11

4 Factors affecting the Competitiveness of Dairy Sector 12

5 Market Structure 13-14

6 Identifying the critical issue in the Dairy chain 15-16

7 Company profile-COMFED 17

8 Area of Operation 22

9 Procurement and Marketing 23-24

10 Milk and Milk product 25-26

11 SWOT Analysis 27

12 Scope of the Study 28

13 Objective of the Study 29

14 Limitation of the Study 30

15 Research Methodology 31

16 Data Interpretation 32-41

17 Findings 42

18 Suggestions 43

19 Annexure 44-45

20 Bibliography 46

Acknowledgement

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At the very outset, I would like to express my heartfelt gratitude to SHAHBAD DUGDH UTPADAK SAHAKARI SANGH,Product dairy, Dehri-On Sone for allowing me to do a project “distributor’s perception and satisfaction level about sudha”.

I felt this project interesting and challenging one. My thanks is to Mr. RavindraPrasad who was very kind in explaining how to use the challenges that lay ahead me. I feel indebted to Mr. Rupesh kumar. for explaining to me the intricacies and peculiarities of milk business which came handy on various occasions and allowed us to retain our focus and finish my research with the satisfaction of a job well done .I would also like to commit my hearty thanks to Mr. Abhishek kr.Ranjan for his help and valuable support throughout the project term. It was a great learning experience to work under their guidelines.

I am extremely thankful to my faculty guide Dr. (Prof) A.K Mahanty at BIT Allahabad Campus ,who guided during my training.In the end we would like to say that it was a great experience working on this project.

Executive summaryThe project was started on 1st of June after knowing all the relevant information about the different milk varieties available, under the guidance of Mr. .R. Prasad (Chief Executive) &Mr. Abhishek.

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SHAHBAD DUGDH UTPADAK SAHAKARI SANGH, Product dairy, Dehri-On Sone, is one of the member milk union of COMFED, where the milk procurement pasteurization and marketing is taking place.

It was a great experience to undergo Summer Internship Training on “Distributors perception and satisfaction level about sudha”.

During study I tried my best to know about the various departments of the company, from production to marketing of milk.

I found that marketing plays key role in the company. Through this study, I tried to find out distributors perception towards the company, which may help the marketing department of the company as well as the company.

The study was focus to find out the satisfaction level of distributors and Identification of their problem areas and helping them in order to increase sales and promotion of brand. For this I used the method of personal interviews and questionnaires.. For this I visited around 10 distributors in the area, i.e., Sasaram, Dehri, Aurangabad and spoke to them.

A major source of information in this category being secondary data analysis.Research question were framed which was further divided into subcomponents and following the subcomponent a questionnaire is designed to conduct descriptive research.

INTRODUCTION TO THE INDIANDAIRY INDUSTRY

The world's biggest dairy producing country is growing fast and looking to become an export powerhouse despite major quality problems

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India i s the wor ld ' s la rges t mi lk producing count ry and i s growing fast, with an eye toward becoming a major dairy exporter.

.Consumer Habits and PracticesM i l k h a s b e e n a n i n t e g r a l p a r t o f I n d i a n f o o d f o r c e n t u r i e s . T h e p e r c a p i t a availability of milk in India has grown from 172 gm. per person per day in 1972 to 182gmin 1992 and 203 gm. in 1998-99.This is expected to increase to 212gms for 2008. However a large part of the population cannot afford milk. At this per capita consumption it is be low the wor ld average of 285 gm. and even less than 220 gm. recommended by the Nutritional Advisory Committee of the Indian Council of Medical Research.

Packaging TechnologyMilk was initially sold door-to-door by the local milkman. When the dairy co-operatives initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the years, several developments in packaging media have taken place. In theearly 80's, plastic pouches replaced the bottles. Plastic pouches made transportation andstorage very convenient, besides reducing costs. Milk packed in plastic pouches/bottleshave a shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra Packs wereintroduced in India. Tetra Packs are aseptic laminate packs made of aluminum, paper, board and plastic. Milk stored in tetra packsand treated under Ultra High Temperature (UHT) technique can be stored for four monthswithout refrigeration. Most of the dairy co-operatives in Andhra Pradesh, Tamil Nadu, Punjaband Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs5-7compared to p las t ic pouches . In 2008-00 Nest le launched i t s UHT mi lk . Amul toore launched i t s Amul Taaza brand of UHT mi lk . The UHT mi lk market i s expected to grow at a rate of more than 10-12% in coming years.

Regulatory Framework The da i ry indus try was de- l icensed in 1991 wi th a v iew to encourage pr iva te investment and flow of capital and new technology in the segment. Although de-licensingat t rac ted a la rge number of p layers , concerns on i ssues l ike excess capaci ty , sa le of contaminated/ substandard quality of milk etc. induced the Government to promulgate theMMPO (Milk and Milk Products Order) in 2008. Milk and Milk Products Order (MMPO) regula tes mi lk and mi lk produc ts product ion in the count ry . The order requires no permission for units handling less than 10,000 liters of liquid milk per day or milk solidsup to 500 TPA. MMPO prescribes State registration to plants producing

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between 10,000to 75,000 liters of milk per day or manufacturing milk products containing between 500 to3, 750tons of milk solids per year. Plants producing over 75,000 liters per day or moret h a n 3 , 7 5 0 t o n s p e r y e a r o f m i l k s o l i d s h a v e t o b e r e g i s t e r e d w i t h t h e C e n t r a l Government. The stringent regulations, government controls and licensing requirementsfor new capacities have restricted large Indian and MNC players from making significantinvestments in this product category. Most of the private sector players have restrictedthemselves to manufacture of value added milk products like baby food, dairy whiteners,condensed milk etc.All the milk products except malted foods are covered in the category of industriesfor which foreign equity participation up to 51% is automatically allowed. Ice cream, which wasearlier reserved for manufacturing in the small-scale sector, has now been de-reserved. Ass u c h , n o l i c e n s e i s r e q u i r e d f o r s e t t i n g u p o f l a r g e - s c a l e p r o d u c t i o n f a c i l i t i e s f o r manufacture of ice cream.

The Food Safety and Standards Authority of India (FSSAI) regulates food safety in India. Dairy products are regulated under the Food Safety and Standards Regulations (FSSR), which replaced the Milk and Milk Products Order, 1992 on August 5, 2011. The FSSR applies equally to domestic and imported food, and requires that food business operators (including food processors, manufacturers, exporters, or importers) hold a license to carry out business in India. Individuals are not allowed to start or carry out any food business without a license from the FSSAI. The FSSR also prohibits the use of animal-derived rennet in cheeses.

While the FSSAI sets standards for the safety of domestically produced and imported milk and milk products into India, the Ministry of Agriculture’s DAHD is responsible for issuing sanitary permits for milk and milk product imports into India.

Penetration of milk productsWestern table spreads such as butter, margarine and jams are not very popular inI n d i a . A l l I n d i a p e n e t r a t i o n o f b u t t e r / m a r g a r i n e i s o n l y 4 % . T h i s i s a l s o l a r g e l y represented by urban areas , where penet ra t ion i s h igher a t 9%. In rura l a reas , but ter / margarine have penetrated in 2.1% of households only. The use of these products in thelarge metros is higher, with penetration at 15%.

Manufacturing Process

Milk is pasteurized by treating it to high temperature for a short time. The main aim intreating milk with high temperature is to destroy the disease causing pathogens and toimprove keeping quality.Separation machine is typically a high

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powered centrifuge. The centrifugal force makesmilk fat globules and emerges as cream from the separator bowl. Separation of cream produces skim milk from which several dairy products are made.Baby food: Fresh milk, which is received from farmers/ traders, is chilled and stored.Then MSK skimmed/ wet skimmed milk and sugar are added in turbo mixture to achievethe des ired speci f ica t ions of ingredients in the mi lk . This is fo l lowed by addi t ion of vitamins and minerals. This milk which contains ingredients to specifications is filtered,cooled, analyzed and then purified. Then it passes through specific pasteurization and is taken to evapora tor for pre-condens ing. Pre-condensate i s homogenized, cooled and stored. Cooled pre-condensate is heated and dried in spray drier (Ergo). Then sugar is added. The powder is then passed through chemical analysis to check quality and is filledin tins through filling machines. These tins are gassed during gas mix and then sealed, packed and dispatched in cardboard cartons.

Butter:

Whole milk is first separated into skim milk and cream by centrifugal force in aseparator. The cream is then pasteurized either through batch process or a continuous p r o c e s s . I n b a t c h p r o c e s s , c r e a m i s h e a t e d t o a m i n i m u m o f 7 4 0 C a n d h e l d a t t h e temperature for 30 minutes, while in continuous process it is heated at 850 C and is heldfor only 15 seconds. The heat treatment destroys bacteria, inactivates enzymes and givesthe cream a cooked flavor .After pasteurization, a tempering process is applied in which cream is held at 100 C toallow rearrangement of the fat crystals. The cream is then churned to produce butter.Continuous churning converts cream into butter in a few minutes while batch churning takes a longer time. Composition and color adjustment is also done at the churning stage and a salt solution is added to give the finished butter a salty taste. About 13 liters of milk with 6% fat is required to produce 1 kg of butter.

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Cheese:T h e r e a r e t h o u s a n d s o f v a r i e t i e s o f c h e e s e i n t h e w o r l d . T h e t y p e o f manufacturing process used in the production of cheese determines its flavor, whichranges from extremely mild to very sharp, and its texture, which can be semi-solid toalmost stone hard. Cheese making requires four main ingredients - good quality milk,rennet or coagulating acids, culture and salt. Cheese is generally made from cow's milk.About 10 liters of milk with 3% fat is required for making 1 kg of cheese. Natural Cheeseis made by coagulating or curdling milk, stirring & heating the curd, draining off thewhey and collecting or pressing the curd. The desired flavor and texture is obtained byva ry ing t he t e mpera t u r e , humi d i ty a nd t im e pe r iod o f t he cu r ing p roc es s . S w ee te ned condensed milk is usually made from fresh milk by adding sugar to the milk pre-warmingAnd concentrating the mixture in the high vacuum. The syrupy milk is then cooled so thatthe lactose crystallizes as very fine crystals and then the product is coagulated.

Future Prospects

Post forecasts calendar year (CY) 2014 fluid milk production at a record 140.6 million tons, approximately 4.5 percent more than CY 2013 on the assumptions of a normal monsoon, increased demand for milk and dairy products and rising consumer income. CY 2013 fluid milk production has been marginally decreased and estimated at 134.5 million tons.

As a result of strong prices and increased export demand, Post forecasts CY 2014 Non Fat Dry Milk (NFDM) production to increase by 19,000 metric tons to 489,000 metric tons. CY 2013 production estimate for NFDM is revised higher at 470,000 metric tons. While most NFDM producers faced difficulties throughout 2012, market for NFDM has picked up in 2013 due to strong prices and export ban lifted in June 2012. Increased demand for reconstituted milk during the lean season (April-August) and consistent exports of NFDM are also the major drivers supporting increased production. The NFDM market is used as a way to establish a procurement

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system and maintain cash flow while slowly developing a marketing network for high-value perishable goods.

Following India’s rising production trend, Post forecasts CY 2014 production of combined butter and ghee (clarified butter) to increase approximately by 3 percent over CY 2013 to 4.88 million metric tons as a result of increase in income of an average Indian consumer leading to increased domestic demand. However, CY 2013 production estimates are marginally revised down to 4.74 million metric tons in order to match with the current market situation. (Note: Post Production, supply and demand (PSD) estimates for fluid milk, NFDM and butter have been revised to reflect the calendar year in lieu of the April/March marketing year)

India ranks first in the world in milk production and it has gone up from 53.9 million tons in 1990-91 to 127 million tons in 2011-12. The country accounts for around 17 percent of world’s total dairy production. As per Economic Survey Statistics, 2012-13, the per capita availability of milk has increased from 176 grams per day in 1990-91 to 290 grams per day in 2011-12 and this is comparable with the world per capita availability of milk at 289 grams per day for 2011. Strong farm gate prices supported by growth of the Indian economy and the rising domestic demand for value-added dairy products are factors contributing to increased production. Growing private investment in dairy processing facilities is also expected to provide further impetus to India’s milk production over the coming years. Farmers working directly with formal sector buyers have access to modern extension services, thus improving the herd size, management, feeding, fertility and veterinary care. Many of these extension service providers offer artificial inseminations further improving milk yields with new dairy cattle genetics. Artificial insemination services are expected to grow in the future, as the government of India continues to develop protocols for imported genetics products as well as encourage the growth of genetics services throughout the country.

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Factors affecting the competitiveness of the dairy sector

To assess the dairy sector’s competiveness, a performance analysis looked at five factors: demand conditions, market structure, factor conditions, related supporting industries, and government and the enabling environment.

Demand conditions

Demand for dairy products in India is likely to grow significantly in the coming years, driven by more consumers, higher incomes and greater interest in nutrition. Consumption of processed and packaged dairy products is increasing in urban areas. Because of the increasing competition from the private sector, several national and international brands have entered the market and expanded consumers’ expectation of quality – although only among a small proportion of the population. In many parts of the country, people still prefer unpacked and unprocessed milk delivered by a local milkman because of its taste and the perception of freshness. The price elasticity for milk is high, thus demand for milk is very sensitive to price changes.

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Table 1: Demand conditionsMarket size and growth Market growth is due to high per capita consumption, increasing

population and health consciousnessConsumption patterns Consumption of processed and packaged dairy products is

increasing in urban areasConsumption patterns Unpackaged milk is still preferred because of taste and priceSophistication of consumers Consumer awareness on product quality is increasing but in a very

small portion of the populationReceptivity to new products Mostly urban consumers have a very low but increasing interest in

new productsPrice elasticity Price elasticity is highImpact of market opening on demand Consumers now have a variety of quality products

Market structureUntil 2002, cooperatives traditionally were the dominant players in the formal sector. With liberalization of the dairy industry, private investment has increased quite significantly. However, the organized sector’s share in milk procurement is very low because a large proportion of the milk and milk products are sold through the informal channel (Table 3). The informal demand absorbs approximately 41 percent of the milk and milk products produced in the country, accounting for about 75 percent of the marketable surplus of milk. The formal channel, with its packaged milk and dairy products, accounts for only about 25 percent of the marketable surplus, which is about 15 percent of production.

Performance Still large share of produce; 85% of marketable surplus goes through informal channelQuality of milk through informal channel is an issue and to some extent in formal channel as well

Competitive structure Little competition to cooperatives because private sector was not allowed in the sector until recentlyEntry of supermarkets in retailing of milk is increasing the competitive structure

Governance (value chain type) Governance of cooperative structures is constraining efficiency and expansion

Role of "lead" or organizing firms Role of lead agency has been hampered by government interference in cooperatives

Farmer organization Immense scope for improving management and governance

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through farmer organizationsMarketing chain capacity and efficiency Scope for enhancing efficiency of distributionDistribution channels Cooperatives have a well-developed distribution channel in urban

areasHow market signals are conveyed or distorted

Government and political interference in price setting, limits prices being determined by market forces.

The informal sector consists of the village milk vendors who procure loose milk from farmers and sell it in urban and peri-urban areas directly to consumers, small private processors or hotels. The milk vendors also may sell processed products, such as paneer or separated cream. The quality of the vendors’ milk and milk products is not guaranteed. Largely sold in loose form, it is often adulterated with several additives to control spoilage.

Table 3: Flow of milk through different channelsShare of

marketable surplus

% of production Total production(million tons) Use

100% 10045% 45 Home consumption

55% 55 Marketable surplus sold in urban and rural markets (informal and formal)

34.5% 19% 19 Sold in urban markets as loose unpackaged milk

40% 22% 22 Sold as processed products through informal markets

14.5% 8% 8 Sold as packaged milk through formal markets

12.7 % 7 % 7 Sold as packaged milk products through formal markets

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Stage Priority Agent IssuesPolicy environment

Developing livestock policyBreed development

Dept. of Animal Husbandry, Dairying and Fisheries

Lack of a coherent livestock development policyIneffective implementation of policy and projects due to lack of clarity in roles of different agenciesLack of resourcesLack of clarity between roles of different departmentsLack of regulation for quality of feed and medicines

Services Disease control/ health/breeding/extension servicesSupport to dairy farmer organizations/women’s self-help groups

Dept. of Animal Husbandry, Dairying and FisheriesCooperativesNGOsPrivate dairies

Inadequate coverage of veterinarian and breeding servicesNon-existent extension servicesScope to enhance activities of NGOs in these areasLack of private sector involvement in dairy development services and activities

Inputs Feed supplyFodderMedicines/vaccine supply

CooperativeFeed companiesMedicine companies

Quality/cost of feedIneffective approach for management of common property resourcesQuality of medicines

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Medicine storeFormal credit for animal purchase

Banks/financial institutionCooperativesSelf-help group

Very poor access to formal credit at the farm level

Informal loans for animal purchase or other dairy needs

TraderPrivate company agent

Very high rate of interest; farmer has to sell milk at low price to the trader if he/she has borrowed money from the trader

Production Dairy farmingSelling milk cooperatives/traders/private dairy agents

Farmer Poor management and feeding practices because of lack of information in the absence of extension activities.Low productivity because of poor genetic potential, poor feeding and management practices, poor access to health and breeding services, lack of good-quality animalsAvailability of milk per household very lowLow profitability from dairy enterprise

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Marketing/processing

Collection of milk from farmers through village society, processing and marketing of milk in cities and urban areas

Cooperative society

Lack of coverage of villagesLack of transparency in milk testing and pricingLack of democracy in village societiesMarketing only in peri-urban/urban areasMaintaining quality of milk/infrastructureMilk prices declared by cooperatives kept low and used as a benchmark price by other players

Purchase milk from farmers and selling milk and processed products to consumers

Trader No transparency in milk pricingAdulteration and quality of milk and milk productsUnhygienic conditions for milk processing

Purchase of milk from farmers through village agents, processing and selling milk

Private dairy No transparency in pricing of milkQuality of milk

Retailing Selling of milk and milk products processed by cooperatives and private dairies

Retailers

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

Organization

The Bihar State Milk Co-Operative Federation Led. (COMFED) was established in 1983 as the implementing agency of operational Flood programme of dairy development on “Anand”pattern in Bihar.

Physical Performance17

The physical performance indicators are showing a steady growth. The policy decisions taken to make it a truly farmers organization is shown the achievements listed below.

DCS Organization and Membership

“Sudha” milk and milk product has become a symbol of quality. As on date nine out of ten dairy plants are ISO: 9001:2000 and HACCP: IS: 15000:1998 certified.

Organization of Dairy Cooperative Societies (DCS) and Membership

Particulars 1987-88 1997-98 2003-04 2006-07 2010-11 2011-12

DCS Organization 1669 2884 4018 5819 9760 11638

DCS Functional 1462 2306 3285 4540 6937 8823

Membership ('000) 65.60 147.20 213.58 284.42 533.16 629.20

Milk Procurement Enhancement Program (TIP)

The technical inputs program is one of the crucial activities of the milk unions / Compfed and is the major strength responsible for the success of dairy cooperatives. The main technical inputs given to milk producers include breeding facility, animal health cover, feed & fodder and extension/training services. The inputs provided to the farmers are elaborated below.

Artificial Insemination (AI) Program

Artificial insemination with frozen semen using liquid nitrogen (LN) technology is done by static (single) and mobile (cluster) AI workers who are self-employed persons specially trained by Compfed. The progress of establishment of AI centers is as follows:

Milk Union 1987-88 1997-98 2003-04 2006-07 2010-11 2011-12

Patna 120 136(48) 222(96) 250((116) 382(184) 441(218)

Barauni 57 104(35) 162(53) 178(55) 292(150) 344(202)

Muzaffarpur 20 70(28) 129(61) 189(106) 260(177) 300(200)

Samastipur 29 103(35) 185(112) 183(105) 341(171) 395(210)

Shahabad 0 50(15) 160(47) 194(52) 333(105) 333(105)

Bhagalpur 0 6(0) 10(00) 21(00) 87(62) 101(101)

Magadh 0 0 11(06) 30(12) 71(34) 80(36)

Kosi 0 0 0 0(00) 10(10) 20(20)

Ranchi 0 2(0) 17(03) 05(02) 07(02) 07(02)

Total 226 471(161) 896(378) 1050(448) 1783(895) 2021(1094)

AI's Performed

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Particulars 1987-88M 1997-98 2003-04 2006-07 2010-11 2011-12

Total 24926 294895 548334 700222 1134293 1185230

Adequate arrangements have been made to expand the coverage of dairy co-operative societies under this program. For AI training, training facilities available at Compfed qtr. are being utilized and some persons are provided training at ERDTC, Siliguri, and a NDDB managed training center.

Animal Health Program

Main activities under animal health (AH) program include prophylactic vaccination, deworming, mastitis control program, organization of veterinary/infertility camps and treatment of veterinary first ais cases. Resume of different components of AH program is as follows.

Prophylactic Vaccination

Around 2038 Veterinary First Aid (VFA) centers have been established which do the vaccinations. Prophylactic inoculations are mainly done against Foot & Mouth Disease (FMD), Hemorrhage Septicemia (HS), Black Quarter (BQ) and Theileriosis diseases. During 2001-02, after initial trial, mass vaccination with Trio-o-vac (combined FMD, HS and BQ vaccine) on the lines of Pulse Polio vaccinations in children was taken up. During 2011-12 about 16.25 lakh vaccinations have been done. State Govt. is now supporting this programme and mass vaccination campaigns are being done.

Mastitis Control Program

This program has been taken up with the technical assistance from NDDB. Under this program, screening of milk animals is done using "Mastic". The doubtful or sub-clinical cases are given treatment. Awareness amongst the milk producers is created for disinfecting the udders and teats after milking with a view to check the infection of animals. Milk unions provide necessary disinfectant and teat cups to the milk producers on cost basis.

Deworming

Worm infestation in the milk animals affects the productivity adversely. Hence, for improving the productivity and health of animals, deworming with broad-spectrum anthelmintic is arranged regularly by the milk unions.

Veterinary Camps

The milk unions organize veterinary camps where the milk producers bring their animals for treatment.

Feed and Fodder

Since, seventy five to eighty percent of the cost of milk production depends on the feeding of milk animals, this is very important affecting the economy of dairying activity. Both green fodder and balanced cattle feed are required to be fed in appropriate quantities for optimizing the output i.e. the production and also to maintain the health of the animal. The farmers in select dairy co-operative

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societies are being provided training through a computerized nutrition balancing system with the help of National Dairy Development Board.

Adult Cattle feed (ACF) and Bypass Protein Feed (BPF) is manufactured by our cattle feed plants (CFP) located at Patna, Ranchi and Muzaffarpur. The total installed capacity of these plants is 260 Metric Tonsper Day (MTD) thecattle feed produced by these plants is supplied on cost basis to the farmers. Besides manufacturing BPF and ACF, CFP Ranchi also manufactures other livestock feeds to meet the requirement of Govt. farms in Bihar and Jharkhand. During 2011-12, the sale of cattle feed to DCS was 61.10 thousand MTs.

Green fodder is equally important in animal nutrition. Besides providing important nutrients, it helps in reducing the intake of balanced cattle feed and in turn the cost of production. After prolonged extension work and persuasion, the farmers have started not only the cultivation of different fodders in their fields but have started the production of fodder seeds.

Another important scheme under fodder development has been the treatment of straw with urea, which not only increases the palatability of dry fodder but increases its nutritional value also. Feeding of urea treated straw helps in reducing the cost of production of milk. Farmers have now taken it up on regular basis and during 2011-12 about 15873 MTs of straw has been treated.

Training / Manpower Development

Capacity building / skill up gradation has been given maximum emphasis in implanting the dairy development program. This has been achieved through regular training of milk producers, management committee members (MCM) of DCS, staff of DCS / milk unions of Compfed. Training of milk producers, DCS staff and MCM has been mainly arranged at the Compfed training center at Patna. Training programs organized at Compfed's training center include programs of Society Operation for Secretaries, Orientation of MCM, AI & VFA training, Dairy Animal Management, and Legal Literacy & Women Empowerment. Refresher courses and tailor made programs as per need of milk unions is also organized.

Name of the Program Total trained Women

Secretaries 5662 631

MCM 29909 6264

DAM 3528 636

Al 2441 159

Other 7645 3265

Total 49185 10955

Clean Milk Production

Besides creating awareness amongst the milk producers about importance of clean milk production (CMP) program, efforts are made to install bulk coolers and link the DCS covered under CMP with these bulk coolers. Other actions taken include - Preponing arrival time of milk vehicles at chilling centers / dairy docks, use of Stainless Steel milk cans, sanitization of milk cans, vigorous testing of adulterants etc.

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Area of Operation

Milk Unions/Projects/UnitsDistricts

Vaishal Patliputra Milk Union(VPMU), Patna

Patna, Vaishali, Nalanda, Saran and Sheikhpura

DR Milk Union(DRMU), Barauni Begusarai, Khagaria, Lakhisarai and part of Patna

Districts

Tirhut Milk Union(TIMUL), Muzaffarpur

Muzaffarpur, Sitamarhi, Sheohar, East Champaran, West Champran, Siwan and Gopalganj

Mithila Milk Union(MMU), Samastipur

Samastipur, Darbhanga and Madhubani

Shahabad Milk Union(SMU), Ara Bhojpur, Buxar, Kaimur and Rohtas

Vikramshila Milk Union(VIMUL), Bhagulpur

Bhagalpur , Munger, Banka, Jamui and part of Khagaria Districts

Magadh Dairy Project(MDP), Gaya Gaya, Aurangabad, Jehanabad, Arwal and Nawada

Kosi Dairy Project(KDP), Purnia Purnia, Katihar, Araria, Kishanganj, Saharsa, Supaul

and Madhepura

Jamshedpur Dairy Saraikela Kharsawan, East Singhbum and West

Singhbum

Ranchi Dairy Ranchi, Ramgarh, Hazaribagh, Simdega, Gumla, Khunti, Chatra, Palamu, Koderma, Lohardaga, Latehar and part of Giridih District

Bokaro Dairy Bokaro, Dhanbad and Giridih

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Procurement

The milk procurement during 1994-95 averaged 114.32 thousend kgs. Per day which jumped more than five times to around 608.38 TKPD in 2006-07 but the devastating floods in July-Sept 2007 and also during second half of 2008 had very severe effect on the production of milk and its procurement by DCS. In 2008-09, it fell down to 415.36 TKPD but due to sustained efforts it again picked up the momentum. The daily average milk procurement during 2011-12 was 1074.92 TKPD

.Marketing In the initial years, the emphasis of Compfed was on organizing DCS and educating farmers. In the initial years the milk sale moved at snail's speed from 100.55 thousand liters per day in 1987-88 to 106.54 thousand liters per day (TLPD) in 1992-93. However, strategies adopted in 1993-94, changed the trend completely. Year 2003 was declared as "Market Development Year". The daily average milk marketing has now reached a level of about 863.61 TLPD during 2011-12.

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Unit wise Milk Procurement(in '000 Kgs per day)

Milk Union/ Unit

1987-88

1997-98

2003-04

2006-07

2010-11

2011-12

Barauni 20.57 65.93 135.00 173.69 333.08 314.12Muzaffarpur

10.77 24.43 52.84 87.13 118.13 115.12

Samastipur 7.44 32.00 69.86 129.85 248.13 250.99Patna 30.18 56.18 102.66 157.33 221.23 210.15Shahabad - 8.77 29.99 45.41 123.75 129.44Vikramshila 1.41 2.81 3.27 7.78 35.05 35.73Gaya .68 .0.15 3.55 2.42 10.76 7.50Kosi - - - - 6.29 7.13Ranchi - 5.35 6.06 4.78 4.95 4.74Total 71.05 213.19 403.00 608.38 1101.38 1074.9

2

Milk Union/Unit

1987-88

1997-98

2003-04 2006-07 2011-12 2012-13

Patna 31.54 68.84 103.72 124.46 177.36 186.72Jamshedpur 21.91 53.41 69.44 87.41 121.35 123.06 Ranchi 7.09 30.02 51.51 65.35 90.18 99.85Bokaro 10.84 26.26 42.13 54.95 59.23 63.36Muzaffarpur 22.91 27.49 51.87 55.79 88.40 102.51 Gaya 3.88 6.78 14.19 15.56 32.32 38.64 Vikramshila - 3.75 6.83 8.48 20.63 23.67 Barauni 2.47 6.85 41.33 48.55 66.78 81.91 Samastipur - 21.55 54.43 56.84 100.22 110.51 Shahabad - 0.04 16.02 14.72 34.19 37.36Kosi - - - - 25.87 31.46Delhi - - - - - 20.86Total 100.55 245.02 451.46 532.11 816.53 919.89

MilkSerial No.

Milk Milk Type Fat SNF

1. Sudha Gold Full Cream Milk 6.0% 9.0%2. Sudha Gold Sudha Shakti 4.5% 8.5%3. Sudha Gold Cow Milk 3.5% 8.5%4. Sudha Healthy Toned Milk 3.0% 8.5%5. Sudha Smart Double Toned Milk 1.5% 9.0%

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Milk productS. No. Milk Products S. No. Milk Products

1. Ghee 200 ml (Poly) 30. Rasogulla 100 gm2. Ghee 500 ml (Poly) 31. Rasogulla 250 gm3. Ghee 500 ml (Cartoon) 32. Rasogulla 500 gm4. Ghee 15 Kg (Tin) 33. Rasogulla 1 Kg Tin5. Table butter 50 gm 34. Rasogulla 5 Kg Jar6. Table butter 100 gm 35. Rasogulla 10 Kg Jar7. Table butter 500 gm 36. Gulab Jamun 100 gm8. Paneer 100 gm 37. Gulab Jamun 250 gm9. Paneer 200 gm 38. Gulab Jamun 500 gm10. Paneer 500 gm 39. Gulab Jamun 1 Kg Tin11. Lassi 200 ml 40. Gulab Jamun 5 Kg Jar12. Mango Lassi 200 ml 41. Gulab Jamun 10 Kg Jar13. Matha 200 ml 42. Balusahi 100 gm14. Misti Dahi 100 gm 43. Balusahi 250 gm15. Mango Dahi 100 gm 44. Balusahi 500 gm16. Plain Dahi 200 gm 45. Balusahi 1 Kg Tin17. Plain Dahi 400 gm 46. Balusahi 5 Kg Jar18. Plain Dahi 500 gm (P) 47. Balusahi 10 Kg Jar19. Plain Dahi 5 Kg Jar 48. Surbhi 100 gm20. Plain Dahi 16 Kg Jar 49. Milk Cake 100 gm21. Plain Dahi 18 Kg Jar 50. Milk Cake 250 gm22. Flavoured Milk 200 ml

(Kesar/Elaichi)51. Kalakand 100 gm

23. Flavoured Milk 200 ml (C) 52. Kalakand 250 gm24. Peda 100 gm 53. Sugar Free Kalakand 100 gm

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25. Peda 250 gm 54. Sugar Free Peda 100 gm26. Khoa Mithai 100 gm 55. Soanpapdi 250 gm27. Khoa Mithai 250 gm 56. Soanpapdi 400 gm28. Khoa Plain 500 gm 57. Soanpapdi 2 Kg Jar29. Gift Pack 1000 gms 58. Plain Dahi 2 Kg Jar

SWOT Analysis

Strength:

1. The COMFED group is India‘s one of largest dairy sector enterprise. 2. The company has strong brand image for its products.

Weakness:

.

1. Absence of a strong distribution channel. 2. Company has a poor market share in entire Delhi. 3. No effective promotional

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3. Well qualified and technically sound people in the organization.

efforts are being taken by the company.

.Opportunities:

1. Delhi is one of the biggest markets for milk product in the country. 2. Per capita consumption of milk is still below the world average

Threats:

1. Presence of established players like Mother dairy, Amul. 2. Margin is very low in dairy industry. 3. Uncertainty in market factors and changing market scenario.

Scope of the study

The scope of the study is to know the mindset and perception of the distributors. The study will help the company to understand the behavior of distributors while procuring milk.

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The study will help to know the expectation of the distributors from the company.This study will help to improve their services and to make effective marketing strategies to meet customers and distributors expectations. The scope is restricted to specified area.

OBJECTIVE OF THE STUDY

1.To find out penetration level among dealers of sudha milk distributors in the specified region.

2. To study distributors perception and satisfaction level with sudha.

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3. To calculate display percentage and physical reach of sudha milk in consumer (FMCG category).

4. To find out assortment breadth provided by sudha to its customers in the specified region.

LIMITATIONS OF THE STUDY:

1. The survey is geographically covered only in Rohtas and Aurangabad. Data collection in

other regions may produce different results.

2. Few of responses may not be genuine because of time factor.

3. Few respondents were reluctant and not interested to give the feedback.

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4. The research was to be completed within a set deadline. Evidently, more time would have

resulted in more effectiveness of the research.

RESEARCH METHODOLOGY

Research in common refers to a search for knowledge. Once can also define research as a scientific and

systematic search for pertinent information on a specific topic. In fact, research is an art of scientific

investigation. The Advanced Learner’s Dictionary of Current English lays down the meaning of research as “a

careful investigation or inquiry especially through search for new facts in any branch of knowledge

DATA SOURCE-This methodology include both,

Primary data collection Secondary data collection

Primary data collection included simple questionnaire. This questionnaire has closed end questions. Primary data was collected by meeting people personally. Personal interview was taken from dairy distributors.

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Secondary research: COMFED website, past record.

RESEARCH APPROACH- Survey research approach was followed.

CONTACT METHOD-

Personal interview- distributors were interviewed personally.

RESEARCH INSTRUMENT- A structured questionnaire was used as research instrument.

SAMPLING PLAN:

In sampling plan, decision about sample unit, sample size and sample procedure is taken.

Sample unit- existing distributors of sudha dairy. Sample size- The sample size was 10. Sampling Technique - Convenient sampling, Field survey.

Method of data analysis

Data has been analyzed with the help of,MS-EXCEL through pie chart, bar graph.

DATA INTERPRETATIONQue: 01which of the milk products do you also sell?

S.No RESPONSES NO. OF RESPONDENTS

% OF RESPONSES

1 Butter milk 10 10

2 Paneer 10 10

3 Lassi 10 10

4 Curd 10 10

5 Ice cream 0 0

6 Peda 10 10

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TOTAL 10 100

20%

20%

20%

20%

20%

NO. OF RESPONDENTS

1 Butter milk2 paneer3 lassi4 curd5 Ice cream6 peda

Inference:

Here,from our responses we can conclude that all the distributers procure butter milk,lassi,paneer,curd,peda but they do not deal with ice cream.

Que: 02 In which area are you selling (Radius in Km)


% OF RESPONSES

1 0-10 1 10

2 10-25 2 20

3 25-50 3 30

4 50-100 4 40

TOTAL 10 100

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10%

20%

30%

40%

NO. OF RESPONDENTS

1 0-102 25-Oct3 25-504 50-100

Inference:

Here, from our data I can conclude that 10% of the distributors sell their products in 10 km of radius,20% sell in 10 to 25 km of radius,30% deals in 25 to 50 km ,and remaining 40% sell their products in 50 t0 100 km of radius.

Que:03 Reasons for not procuring milk from other dairies/ brands.

Inference:

From the above chart we can say

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% OF RESPONSES

1 Not in the vicinity 2 20

2 Not good quality 5 50

3 High Price 0 0

4 Any other reason 3 30

TOTAL 10 100

that, the 20% of the respondent said not in vicinity,50% said not good quality,30% have others reasons such as brand trust of sudha as their reason of not procuring any other brand of milk.

Que:04 which is the peak season for procurement of milk(please mention the months)


% OF RESPONSES

1 January to march 0 0

2 April to june 8 80

3 July to september 2 20

4 October to december 0 0

TOTAL 10 100

80%

20%

NO. OF RESPONDENTS

1 January to march2 April to june3 July to september4 October to december

Inference:

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From above chart we can conclude that the peak season for procurement of milk and its product is from april to june as the resonses says it is 80% and reaming 20 % is from july to September.

Que:05 Are you satisfied with the advertising of this organization.


% OF RESPONSES

1 yes 6 60

2 no 2 20

3 Can’t say 2 20

Total 10 100

60%20%

20%

NO. OF RESPONDENTS

1 yes2 no3 Can’t say

Inference:

From the above chart we can conclude that 60% of the distributors are satisfied with the advertisement, 20% are not and remaining 20 % are neutral.

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Que 06: Are you satisfied by the schemes and offers of the organization?


% OF RESPONSES

1 yes 3 30

2 no 6 60

3 Can’t say 1 10

TOTAL 10 100

30%

60%

10%

NO. OF RESPONDENTS

1 yes2 no3 Can’t say

Inference:

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From the above data we can say that,30% respondents are satisfied, 60% are not satisfied and 10% are neutral about the schemes and offers given by the organization.

Que 07: If not satisfied what other offers and schemes you want from the manufacturers?


% OF RESPONSES

1 cash discount on next bulk purchase

6 60

2 increase display allowances 0 0

3 some gifts during peak seasons 3 30

4 any other 1 10

TOTAL 10 100

60%30%

10%

NO. OF RESPONDENTS

1 cash discount on next bulk purchase2 increase display al-lowances 3 some gifts during peak seasons4 any other

Inference:

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From the above chart we can interpret that 60% distributors want cash discount, 30% wants gifts and 10 % wants some other offers from the organization.

Que :08 Do you get the timely delivery of the products?


% OF RESPONSES

1 yes 8 80

2 no 0 0

3 sometimes 2 20

TOTAL 10 100

80%

20%

NO. OF RESPONDENTS

1 yes2 no3 sometimes

Inference:

From the above data we can conclude that 80% of the distributors get the timely delivery of their products and 20% have sometimes late issues problems.

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Que:09:do you get display allowances?


% OF RESPONSES

1 yes 0 0

2 no 10 100

3 sometimes 0 0

TOTAL 10 100

100%

NO. OF RESPONDENTS


Inference:

From the above data we can conclude very clearly that our organization do not pay display allowances to the distributors.

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Que 10: Do company personnel take tours?


% OF RESPONSES

1 yes 8 80

2 no 0 0

3 sometimes 2 20

TOTAL 10 100

80%

20%

NO. OF RESPONDENTS


Inference:

From the above chart we can conclude that 80% of the distributors place is visited by the company personnel regularly and remain 20 % rarely.

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Findings

1. Most of the respondents sell almost all milk products of the company.2. Ice cream is not sold by any of the distributors.3. Company has good brand image in the area and distributors are satisfied with the

quality of the product.4. Distributors are not satisfied with the schemes and offers of the company as their

expectations are not met by the company.5. The peak season of procurement of milk by the distributors is mainly in the months

of April to July due to summer.6. The distributors do not get any display allowances from the company.7. The distributors get timely delivery of the products and are often visited by company

personnel.

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SUGGESTIONS

1.The sudha brand is having trust name in the market where it operates and still the market is open to acquire,company may take advantage of it through advertisement.

2.The company may keep one employee as Customer Relation Executive who will co-ordinate between customers and company and also with retailors,who may also promote sudha milk effectively on regular basis.

3.Coin milk parlor at suitable places can be establish.

4. Company should pay display allowances to the distributors.

5. Company should have close watch on customer to know their changing needs and wants and also on the competitors for benchmarking.

6. Company should also provide some gifts or other discount to distributors to maintain healthy and economical relationship with them.

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Annexure:QUESTIONNAIRE

You are requested to give us your thoughts to this subject by providing your responses to the questionnaire attached herewith. The information provided by you will help us conduct our survey successfully. The response should be frank. Your responses will be kept fully confidential and will be used for academic purpose.

Date: _ _ / _ _ / _ _ Serial Number: _ _ _Name: …………………………… Age:…………………….…………Address: ………………………… Phone:...........................................Block: ………………….Town/ City: ………………….

Que:01 Which of the milk products do you also sell?

o Butter Milk o Paneero Curdo lassio Ice Creamo Gheeo pedao Any Other

Que:02 In which area are you selling (Radius in Km)

o 0 to 10 10 to 25o 25 to 50 25 to 100

Que:03 Reasons for not procuring milk from other dairies/ brands.

A. Not in the vicinity B. Not good quality C. High PriceD. Any other reason (specify)…………………………………………………

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Que:04 which is the peak season for procurement of milk(please mention the months)

January to march April to June

July to September October to December

Que:05 Are you satisfied with the advertising of this organization.

Yes No Can’t say

Que 06: Are you satisfied by the schemes and offers of the organization?

Yes No Can’t say

Que 07: If not satisfied what other offers and schemes you want from the manufacturers?

a) cash discount on next bulk purchase

b) increase display allowances

c) some gifts during peak seasons

d) any other ………

Que 08:Do you get the timely delivery of the products?

Yes No Can’t say

Que:09:do you get display allowances?

Yes No sometimes

Que 10: do company personnel take tours?

Yes No sometime

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BibliographyREFERENCE BOOKS:

1) Marketing Research (Author - G C Beri)

(Published by Tata McGraw Hill Publishing Co. LTD., New Delhi)

Third Edition(2002)

2) Marketing Management (Author – Rajan Saxena)

(Publish by Tata McGraw Hill Publishing Co. LTD., New Delhi)

Second Edition(2001)

3) Marketing Management (Author- Philip Kotler)

(Publish by Pren Tice-hall of India PVT. LTD., New Delhi) Ninth Edition

4) Research Methodology (Author – Bhandrai)

Print 2004, second edition

WEBLIOGRAPHY

1. WWW.COMFED.COM

2. WWW.ECONOMIC SURVEY .COM

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