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CHAPTER 1
Introduction To
TheOrganization
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INTRODUCTION TO COUNTRY MILK
THE PUNJAB STATE COOPERATIVE MILK PRODUCERS
FEDRATION LIMITED; The Punjab State Co-operative Milk Producers
Federation Limited (MILKFED) was established the in 1973 by Punjab Diary
Development cooperation under the Punjab Sate Co-operative Act, 1967 to
safeguard commercial interest of milk producers farmers to save them from
exploitation of middleman, with their participation in its management and to
provide quality milk and milk products to consumers at competitive rates.
First, to carry activities for promoting production, procurement and
processing of milk for the economic development of milk producers by
providing remunerative milk market to them at their door step. Second, provide
quality milk and milk products to consumers at reasonable rates.
Although the federation was registered much earlier, but it came to real
self in the year 1983 when all the milk plants Punjab Dairy Development
corporation Limited were handed over to cooperative sector and the entire State
was covered under operation Food programme to give farmers to a better deal
and our valued customers better products. Today, when we look back, Country
Milk has fulfilled the promise to great extent. The setup of the organization is a
three tier system, Milk Producers Cooperative Societies at the village level,
Milk Union at District level and Milk Federation as an apex body at a State
level.
Milk production is a very important part of agricultural economy in the
State of Punjab. Punjab is one of smallest state in Indian Union with a total area
of 50,362 Sq. km. Dairy Farming is an old subsidiary profession in the rural
area of Punjab. Punjab is the second largest milk producing state in India,
producing 10 % of countrys milk.
Some facts about Country Milk:-
1. First Milk Plant of the State was setup at Country Milk near Amritsar.
2. The brand name of Milk and Milk Products was adopted as Country Milk.
3. The Foundation stone of Milk Plant Ludhiana was laid by Hon. S. Parkash
Singh Badal the CM of Punjab in 1970.
4. Commissioning of the Plant was done by Dairy Development Corporation in
1974.
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HISTORY
The Punjab State Country Milk Milk Producers Federation limited
popularly known asMILKFED Punjab came into existence in 1973 with a
twin objective:
To providing remunerative milk market to the Milk Producers in the
State by value addition and marketing of produce on one hand and
To provide technical inputs to the milk producers for enhancement
of milk production on the other hand.
Although the federation was registered much earlier, but it came to real
self in the year 1983 when all the milk plants of the erstwhile Punjab Dairy
Development Corporation Limited were handed over to Cooperative sector and
the entire State was covered under Operation Flood to give the farmers a better
deal and our valued customers better products. Today, when we look back, we
think we have fulfilled the promise to some extent. The setup of the
organization is a three-tier system, Milk Producers Cooperative Societies at the
village level, Milk Unions at District level and Federation as an Apex Body
at State level.MILKFED Punjab has continuously advanced towards its coveted
objectives well defined in its bylaws.
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Name and location of group companies & products
manufacture/offered by MARKFED:-
Milkfed has a strong value addition base addition base though its 12
District cooperative milk producers unions and 40 chilling centers capacity of
about 15 Lac liters per day, all of whom have attained self sufficiency or are on
the thresh-old of attaining it.
1. Gurdaspur
2. Amritsar
3. Hoshiarpur
4. Jalandhar
5. Ropar
6. Ludhiana
7. Bathinda
8. Sangrur
8. Patiala
9. Firozpur
10. Faridkot
11. Bassi Pathana
12. Mohali
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MISSION, OBJECTIVE, QUALITY POLICY AND
CORE VALUES
Mission:-
To become the market leader in market of milk and milk
products.
Objective:-
Direct approach to consumer and producer and to avoid
middleman. (By the farmers, of the farmers and for the farmers
organization.)
Quality Policy:-
On the basis of quality with efficient administration, MILKFEDhas not
only established new mile stone of providing services to Dairy farmers but
scaled new heights in delighting esteemed customers also. This has resulted into
tremendous achievements in all fields.
Core Values:-
Selling the highest quality natural and organic products available
Satisfying and delighting our customers
Supporting team member happiness and excellence
Creating wealth through profits & growth
Caring about our communities & our environment
Creating ongoing win-win partnerships with our suppliers
Promoting the health of our stakeholders through healthy eating
education.
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PRODUCTION RESULTS OF PREVIOUS YEARS
NAME OF THE
PRODUCT
2006-07(in
M.T)
2007-08(in
M.T)
2008-09(in
M.T)
Ghee 356.729 412.933 505.90
Butter 140.550 291.193 83.69
WMP 382.070 195.205 58.05
SMP 245.350 402.175 583.97
Cheese 92.290 85.463 110.42
Curd 693.620 727.845 807.43
Kaju Pinni 559.00 1329.0 1746.00
Liquid Lassi 10999195 11270977 12496497
Lassi 17.189 2136.0 138333.0
Kheer 1262.0 2770.0 5814.0
Total Capacity
Utilized
50.38(%) 52.83(%) 58.77(%)
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TURNOVER:-
The annual turnover of Milkfed which was Rs.585 crores in the year 2003-04
has hit the level of Rs.725 crores in the year 2006-07.
EQUITY PARTICIPATION:-
The paid-up equity of Milkfed as on 31.3.2007 was to the tune of Rs.47.15
crores which comprises of Rs.29.02 crores from the cooperative members and
balance Rs.18.13 crores from State Government.
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MILKFED GROWTH AT A GLANCE
PARTICULARS UNIT 02-03 03-04 04-05 05-0606-07
FUNCTIONAL
SOCIETIESCUMMU.NOS. 6643 6445 6104 6101
5989
MEMBERSHIPCUMMU.NOS
IN LACS3.79 3.76 3.56 3.63
3.60
AVG. DAILY MILK
PROCLKG SPD 10.01 7.45 7.81 7.82
7.78
PEAK MILK PROC LKG SPD 15.01 10.04 11.64 11.3711.54
A.I. CLUSTER SOCS. COOMU.NOS. 305 323 341 388433
FODDER SEED
SUPPLIED
M.Ts. 517.40 444.10 400.30 430.00
500.00
CATTLE FEED SOLD M.Ts. 71743 73724 66970 6675073577
AVG..DAILY CITY
SUPPLYLLPD 4.68 4.97 5.27 5.67
5.81
SALE OF SFM LAC PKTS/BTLS 29.61 30.32 35.85 42.4941.92
SALE OF LASSI LAC PACKETS 10.10 10.54 12.20 16.8919.16
SALE OF ICE-CREAM LAC LITRES 7.63 9.17 10.23 12.1815.61
EXPORTS RS.IN LACS 953.52 698.17 1142.28 713.6711.50
TURNOVER RS.IN CRORES 670.00 585.00 653.00 682.00725.00
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MARKETING OF MILKFED:-
Milkfed is serving nation wide consumers through its net work of
Regional offices and strong Distribution channels. Milkfed markets a wide
Variety of Products which include liquid milk, skimmed milk powder,
whole milk powder, infant food, ghee, butter, cheese, Lassi, SFM, Ice
Cream, Malted food Country Milk Vigour etc. etc. The annual turn over of
Milkfed has crossed Rs 668 crores. Country Milk is a brand leader in milk
powders particularly in northern eastern sectors and SMP marketed by
Milkfed commands a premium price over powders manufactured by
competitors who include multi-national as well as private trade and other
Cooperative Federations
EXPORT OF MILK PRODUCTS:-
With competition in the national market zooming up efforts to
export products have been made.Milkfed has established its ghee market in
Middle East Market. Country Milk ghee reaches all the emirates and is
available almost in all super markets. The penetration is so deep that CountryMilk ghee is available in far off labor camps. In addition to ghee, SMP was
also exported to Asian Countries like Philippines, Bangla Desh and Sri-
Lanka. Country Milk Malt Plus (Malted Milk food) has also been exported to
Bangla Desh.
QUALITY ASSURANCE PROGRAMME:-
Quality Assurance Programme (QAP) which is a part and parcel of
Dairy Plant Improvement Programme (DPIP) was taken up in Ludhiana
Milk Union with the Technical guidance from NDDB. The main objective
of the programme is to improve efficiency of Plants coupled with loss
management to bring down the cost of production, improve the quality of
milk and milk products manufactured to ameliorate the general hygienic
and house keeping standards and above all to enhance the profitability and
financial viability of the Milk Plants to enable milk producers to get better
price for their produce.
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DETAILS OF OPERATIONS
(Procurement, Reception and processing)
Inauguration of plant by Punjab Minister Giani Jail Singh dated 7 May, 1973
and the plant started in 1975.
Village Producer
Societies
Chilling Milk Centre
Milk Plant Hoshiarpur
Reception Dock
Quality Control
Production Department
Processing
Finished Products
SOCIETIES:-
The milk plant, procure milk through co-operative societies. At
the present the plant has the 751 societies. Firstly milk is collected by these
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societies and then sent to the milk plant for two times, morning and evening.
The milk producers receive rate of milk from milk plant on the basis of fat.
CHILLING MILK:-
There are three milk-chilling centers at Dasuya, Padrana and
Balachour. Firstly milk is received at the chilling center and after chilling
the milk.
MILK PLANT:-
After chilling the milk, it is sent to the milk plant, the purpose to
setup the center are that, the societies are far away from the milk plant
and milk is perishable in nature so to avoid the wastage of milk, the
chilling center were setup. Firstly milk is received in dock through
tempo in higher basis of routes. There are 3 seasons of milk - fluid,
average and lean. The lean period is during April and July and this
period supply of milk received in less quantity. The average is During
August to November and in this period the supply of milk received is
average. The flush is in winter and the milk is highly produced.
RECEPTION OF MILK:-
Reception of milk is done at the dock. Dock is like a station. The
milk plant has two Docks, firstly milk is reached in the huge quantity, after
this process milk is sent to the laboratory to find out fat and S.N.F. contents,
then milk cans are washed by the machines and again these cans are kept in
the carriers after this process tempo sheets are prepared. The numbers of
milk cans of buffalo and cows milk are recorded on these sheets are sent to
the societies for the information of quantity of milk.
PROCESSING:-
All the received is passed on to the tank lying under the weighing
bowl. Then the milk is immediately chilled and pasteurized. Pasteurization
is a process which was found by Lou Pasteur.
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MARKET SERVED DOMESTIC/FOREIGN:-
The success of a concern lies not only in production, but also mainly in
successful marketing.
Marketing is the process getting the right goods to the right consumers
at the right place at the right price.
In Country Milk Milk Plant four types of tetra packs and other products
are marked under the brand name COUNTRY MILK,Milk plant is solely
responsible for the marketing of fluid milk products are marked by the Punjab
state co-operative milkproducersunion ltd.
Return of tetra packs:-
Because the expiry time of tetra pack is 6 months, good packing
and fresh supply, there is no replacement of the tetra packs.
Exports
Milk union is famous all over the country and outside the country for
its quality of milk and milk products. It holds international quality
certificates ISO 9002 and IS-15000 (HACCP). Due to these certificates its
products are easily acceptable in the international market. It export Ghee to
Dubai but no any tetra pack is export.
Products Manufactured and marketed by Milk Union:-
Milk plant, has variety of products which are available in different
packing. Raw material for all these products is milk which procured from
milk producers.
1 Sterilized Fluid Milk
a) Standardized milk (Fat Contents 4.5%)
b) Double Tend Milk (Fat Contents 1.5%)
c) Full Cream Milk (Fat Contents 5.5%)
2 Ghee
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3 Butter
4 Skimmed Milk Powder(SMP)
5 Paneer
6 Milk Cake
Besides these products milk plants sells various products
procured from plants. These products are as under:
1 Flavored Milk
2 Flavored Lassi
3 Mango Rassila
4 Yoghurt Fruit Drink
5 Kaju Pinni
6 Ice Cream
Aims Of Milk Union
Every organization is formed for achieving some objectives.
Setting of objectives and aims serves as guidelines for excellent or smooth
working of the concern. The Country Milk milk plant, touted to fulfil the
following aims.
1. To uplift social and economic states of the milk producers.
2. To develop dairy as an industry allied to agriculture.
3. To procure milk and execute marketing efforts so that milk
producers get good prices of their milk.
4. To provide better quality cattle feed at reasonable prices.
5. To increase the bargaining power of milk producers at their
doorsteps.
6. To provide veterinary aids to animals of milk producers at their
doorsteps.
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7. To create employment opportunities for rural youth by milk
production activities.
Study of functioning of all departments:-
Milk Procurement Section
Milk procurement business is being looked after mainly by milk
union, Milk is collected by milk producer co-operative societies ate the
village level and purchased by Milk Union, which further supplies that milk
to the Milk Plant, after charging commission from milk Plant at ratesspecified by Milk Union.
The plant was registered in the year 1972 with primary
membership of 45 milk producer co-operative society. At present it has
767 co-operative societies.
Staff Structure of procurement section:
Manager, milk Procurement
Dy.Manager (Proc.)
Manager (Milk Chilling Center)
M.P.A.
D.H.C.C.
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Production Department:-
This department his headed by production manager and
technical staff and officers and operation. Manager is responsible for
production planning, receiving good quality of milk, its processing and
production of milk products.
His responsible for achieving production target with minimum
wastage. He also guides workers for better performance. The production
is an important activity because other department purchasing extra
revolve around it. Different milk products are produced as per
availability of milk and as per demand of market.
First of all the requirement of milk demand is fulfilled and then
remaining milk is used for producing various products such as Ghee,
butter, cheese etc,.
Staff Structure of production section:
Manager of Production
Dy. Manager, Production
Sr. Plant Operator
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Jr. Plant Operator
D.H.C.
Purchase Department:-
This department his headed by purchase officers who is assisted by
supporting staff in maintaining regular supply of store items. This section
ensures timely purchase of required store items at very reasonable cost.
Functions of purchase department:-
a. To received purchase requisition from stores.
b. To buy goods or materials wisely at reasonable prices.
c. To invite quotation from number suppliers and preparing
comparative statement to choose a right supplier.
Engineering Section:-
This section his headed by engineering manager who is assisted by
technical officers. He is responsible for identifies all machine needing
maintenance to avoid any breakdown during the production. He is also
supposed to introduce to new machinery by which the cost of production can
be decreased it also insured are transport vehicles of milk plant.
Staff Structure of engineering section:
Manager, Engineering
Dy. Manager, Engineering
Foreman Foreman Foreman Foreman
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Electrical Refrigeration Boiler Transportation
Management Information System:
MIS is a system where information about the activities of plant is
supplied to management. Accurate and precise information to support the
operation management analysis and decision making function in an
organization. Here data are collected from different section in an
organization, which can be useful to the management for decision making.
Accounts Department:-
A manager account is the head of this department. He is responsible for
the overall management of accounts. This section is responsible for timely
payment to all the employees of milk plant and also to the parties dealing with
it. It records all the transactions in the proper books to provide necessary
information to the authorities whenever required.
Personnel and HRD department:-
Production Manager & HRD Department who is assisted by
supporting staff to carry out function of this section head this section. This
section ensures compliance of labor laws, maintenance of proper records and
completion of administrative formalities for timely payments of dues to
employees. It is also responsible for maintaining cordial relationship between
workers and management.
Marketing Department:-
The success of concern lies not only is production but mainly in
successful marketing. Production of goods and services has no meanings
unless goods and services are exchanged profitably for money or moneys
worth. This involves the movement of goods from the manufacturers to
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ultimate consumers. In bringing he producer and consumer together, certain
activities are performed which is the concern of marketing.
Marketing is a process of getting the right goods to right consumers at
the right place, at right time and prices.
Deputy Manager who is further assisted by supporting staff heads Marketing
section. He regulates the production of milk and milk product in different
ways to ensure maximum possible returns from sales.
Quality Control Department:
Quality control manager heads this department and the technical staff
assists the manager by conducting all type of tests on raw materials and
finished products with the help of sophisticated equipment and machines
purchased.
Quality control laboratory helps in maintaining high quality of milk
and milk product assist ensures quality by testing the raw material as well as
finished products.
Staff Structure of Quality Control section.
Manager, Quality Control
Dy. Manager, Quality Control
Asstt.Manager, Q.C.
Chemist
Laboratory Assistant
Helper
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Store Department:-
This department stores all the essential equipment and material and
stationary required in all the departments. It also keeps the records of goodspurchase and goods in stock as well as the goods the used by the particular
department. The main purpose of this section is to keep the full record of packed
material. The product is stored at clean and Cool places.
Security Department:-
One senior security employee, who is assisted by a team of well-
trained personnel manager the security department. This department keeps
proper watch on men, money and materials while entering in and going out
of the plant.
Special Technique Adopted
Management information system:-
MIS is the system in where information about the activities of the
plant supplied to the management. Accurate and precise information to
support the operation management, analysis and decision making function in
an organization. Here data are collected from the different related sections
which can be the management for the decision making.
The following information are maintained and supplied to the
management when required:-
Progress of dairy plant (monthly/Yearly).
Progress report of input activities (monthly/Yearly).
Progress report of procurement activities (monthly/Yearly).
Reports on activity of chilling centres (monthly).
Report on product wise costing (monthly).
Report on unit costing (monthly).
Report on product wise costing (monthly).
Stock statement (monthly).
Sales and return (monthly).
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Transportation cost of milk collected (route wise).
Section wise salary report (monthly).
Running hours of machine (monthly).
Financial position (yearly). Dairy co-operative societies progress (Monthly)
In any decision making matter all these information is of great help tp
the management. Thereby in an organized dairy like Country Milk Milk
Plant, Hoshiarpur, it is a very important section to keep the overall
position/status of the plant.
Production of milk products:-
Production is a more important activity of an organization. In occupies an
important and significant place because other functional areas of
management viz.financing, marketing, purchasing and personal revolve
around it.
Production is a process by which raw materials are converted into
finished products with the help of energy, capital, manpower, and machinery.
Production policy aims at maximum output with minimum input. The
production departments play a very important role in formulation of the
production policies.
Production planning is done by the head office and send to the
production manager according to this planning production manager arrange
to produce the products.
Production planning of milk products is done in keeping in the view the
procurement of the milk plant and also tentative demand in the city. After the
supply of the pasteurized milk, the remaining milk is used for producing
various products. Different milk products are produced as per availabilities
of milk and as per demand of sales and keeping in view the production plan
given by head office. Every district has its own plant.
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Country Milk products range:-
1 Ghee
2 Butter
3 Skimmed milk powder
4 Flavoured milk
5 Flavoured Lassi
6 Mango Rassila
7 Paneer
8 Milk Cake
9 Dahi
10 Ice Cream
11 Kaju Pinni
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VARIOUS PRODUCTS PRODUCED BY COUNTRY MILK
MILK PLANT
GHEE (AGMARK)
Boudine Test Neg.
B.R.reading (40 degree C.) 40 - 43
RM Value (Min.) 28.0
P.Value 1.0 - 2.0
FFA % Oleic Acid( Max) 0.30
BUTTER
TABLE WHITE
Fat% (Min.) 80.00 82.00
Acidity %L.A. (Max.) 00.15 00.06
Curd % (Max) 01.00 01.50
Salt % (Max) 2.8 -
Coliform/ml. (Max.) 5 5
Y&M (Max)/g 20 20
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GENERAL COMPOSITION FOR
MILK
Percentage Cow Milk Buffalo Milk
Fat 4.6 6.6
Proteins 3.4 3.9
Lactose 4.9 5.2
Ash 0.7 0.8
Water 86.6 84.2
STANDARD MILK
Milk Fat % (Min) 4.5
Milk SNF % (Min) 8.5
PH (Max) 6.8
MBRT (Min) 5.00
Hrs.
Phosphates Test Ng.
Bacterial Count/ml.(Max) 30,000
Coliform/0.1 ml. Nil
UHT MILK
FAT 4.6%
SNF 8.6%
pH 6.6
Acidity L.A. 0.130% LA
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SWEETENED FLAVOURED MILK
Milk Fat % (Min.) 1.65
Total Milk Solids % (Min.) 17.0
Sugar % (Max.) 6.0
Turbidity Test Neg.
Creaming Index 20
Bacterial Spores per ml. (Max.) 5
LASSI
Milk Fat % 3.0 to 3.4
Total Solids % (By wt.) 20 - 23
Sugar % 12.00
RASEEELA
Cheese Whey % 40
Sugar % 12-12.5
Mango Pulp% 10.00
Brix 15
Acidity(%Citric Acid) 0.28
pH 3.9-4.1
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ICE CREAM
Weight (g/lts.) Min.560-
580
Total Solids (Min.) (By
wt.)38.5
Milk Fat % (Minimum) 13
Acidity, L.A. % (Max) ByWt.
0.25
Sucrose % Max. (By Wt.) 14.50
Stab. Emul. % Max. 0.50
KULFI AND F/N CHOCOLATE
KulfiF/N
Choc
Total Solid (%Min. By
wt.)42.00 38.50
Milk Fat %(%Min. By
wt.)13.00 13.00
Protein (%Min. By wt.) 3.50 3.50
Acidity % Max (By wt.) 0.30 0.30
Sucrose % Min. (By wt.)
Total14.00 16.50
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CHAPTER 2
INTRODUCTION
TO
THE TOPIC
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CONSUMER PERCEPTION
Definition:-
The concept of customer perception does not only relate to individual
customers in consumer markets. It is also valid in business to business
situations. For example, a competitor benchmarking survey of a large industrial
supplier revealed that the market leader, although recognized for excellent
quality and service and known to be highly innovative, was perceived as
arrogant in some regions. If we take into consideration that there are about four
other large players with a similar level of quality and innovative ideas, this
perceived arrogance could develop into a serious problem. Customers here are
well aware the main characteristics of all the offerings available at the market
are largely comparable. So they might use the development of a generation of
their own to switch to a supplier that can serve them not better or worse, but
with more responsiveness and understanding.
In general, consumer behaviour is the study of when, why, how, and
where people do or do not buy products.
Consumer behavior is the study of when, why, how, and where people do
or do not buy product. It blends elements from psychology, sociology, social
anthropology and economics. It attempts to understand the buyer decision
making process, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioral variables in an
attempt to understand people's wants. It also tries to assess influences on theconsumer from groups such as family, friends, reference groups, and society in
general.
Customer behavior study is based on consumer buying behavior, with the
customer playing the three distinct roles of user, payer and buyer. Relationship
marketing is an influential asset for customer behavior analysis as it has a keen
interest in the re-discovery of the true meaning of marketing through the re-
affirmation of the importance of the customer or buyer. A greater importance is
also placed on consumer retention, customer relationship management,
personalization, customization and one-to-one marketing. Social functions can
be categorized into social choice and welfare functions.
In todays globalizing economy competition is getting more and fiercer.
That means it becomes more difficult for products and services to differentiate
themselves from other offerings than ever before. Not only is the number of
competitive offerings rising due to globalization of production, sourcing,
logistics and access to information. Many products and services face new
competition from substitutes and from completely new offerings or bundles
from industry outsiders. Since product differences are closed at an increasing
speed and many companies try to win the battle for customers by price
reductions, products and services tend to become commodities.
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On the other hand, customer behavior becomes more hybrid. On one
hand, customers are increasingly price sensitive searching for bargains at
marketplaces like eBay or buying their groceries at discount markets. On the
other hand they enjoy branded and luxury goods. One and the same person may
plan a weekend trip with a no-frills airline and a stay at a five-star-hotel.
In the result, customers have a wider choice of often less distinguishable
products and they are much better informed. For many offerings the balance of
power shifts towards the customer. Customers are widely aware of their greater
power, which raises their expectations on how companies should care for them.
Bringing it all together, it becomes ever more difficult to differentiate a
product or service by traditional categories like price, quality, functionality etc.
In this situation the development of a strong relationship between
customers and a company could likely prove to be a significant opportunity for
competitive advantage. This relationship is not longer based on features likeprice and quality alone. Today it is more the perceived experience a customer
makes in his various interactions with a company (e.g. how fast, easy, efficient
and reliable the process is) that can make or break the relationship. Problems
during a single transaction can damage a so far favorable customer attitude.
The consequence for companies is that they have to adapt their ways of
competing for customers. Traditionally, companies have focused their efforts of
customer relationship management on issues like customer satisfaction and
targeted marketing activities like event marketing, direct marketing or
advertising. Although doubtless necessary and beneficial, these activities are not
longer enough. They narrow the relationship between company and customer
down to a particular set of contacts in which the company invests its efforts.
Most likely this will produce not more than a satisfied customer who is well
aware of the companys offerings and has a positive attitude towards them.
However, a satisfied customer is not necessarily a loyal one.
If a customer is satisfied that means that a product of service has met his
expectations and that he was not dissatisfied by it. Customer satisfaction is
doubtlessly very important. It is the precondition for repeat purchases and it
prevents the customer from telling others about his disappointing experiences. A
loyal customer, however, is more than a customer who frequently purchasesfrom a company.
The difference is the emotional bond which links the customer so closely
to the company that he develops a clear preference for these products or brands
and is even willing to recommend them to others. Loyal customers truly prefer a
product, brand or company over competitive offerings. Thus loyalty goes
beyond a rational decision for known quality or superior price-performance-
ratio. It is about the customers feelings and perceptions about the brand or
product.
When the customer makes his buying decision, he evaluates the benefitshe perceives from a particular product and compares them with the costs. The
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value a customer perceives when buying and using a product or service go
beyond usability. There is a set of emotional values as well, such as social
status, exclusivity, friendliness and responsiveness or the degree to which
personal expectations and preferences are met. Similarly, the costs perceived by
the customer, normally comprise more than the actual price. They also include
costs of usage, the lost opportunity to use another offering, potential switchingcosts etc. Hence, the customer establishes an equation between perceived
benefits and perceived costs of one product and compares this to similar
equations of other products.
Based on this, customer loyalty can be understood as to how customers
feel about a product, service or brand and whether their perceived total
investments with a it live up to their expectations.
The important point here is the involvement of feelings, emotions and
perceptions. In todays competitive marketplace, these perceptions are
becoming much more important for gaining sustainable competitive advantage.
Customer perceptions are influenced by a variety of factors. Besides the
actual outcome i.e. did the product or service deliver the expected function
and did it fulfill the customers needthe whole process of consumption and all
interactions involved are of crucial importance. In todays globalize information
driven economy this can also comprise issues like
How other customers or influencing groups perceive the product or
brand
The degree to which the customer feels the actual marketing campaign
addresses the most important issues
Responsiveness and service quality of any affiliates, e.g. distribution
partners
Customer perceptions are dynamic. First of all, with the developing
relationship between customer and company, his perceptions of the company
and its products or services will change. .
Moreover, if the customers circumstances change, their needs andpreferences often change too. In the external environment, the offerings of
competitors, with which a customer compares a product or service will change,
thus altering his perception of the best offer around. Another point is that the
public opinion towards certain issues can change. This effect can reach from
fashion trends to the public expectation of good corporate citizenship. Shells
intention to dump its Brent Spar platform into the ocean significantly altered
many customers perception of which company was worth buying fuel from.
Research has been done on the impact of market share on the perceived
quality of a product. Depending on the nature of the product and the customers
preferences, increasing market share can have positive or negative effects onhow the customer perceives the product.
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Companies have done a lot to improve customer satisfaction and
customer relationships in the past. As discussed above, this will not be enough
any more.
Any serious effort to manage customer perceptions starts with a good
measurement system. Companies must be truly willing to look at the wholeprocess of interaction through the customers eyes. For many companies, this
requires a more or less extensive shift in mindset, since most departments from
development to sales will be involved.
Positive effects of increasing market share on customer perception
Increasing market share can send out positive signals by acting as an
indicator of superior quality that is recognized by more and more other
customers. This effect is particularly strong for premium priced products.
Customers normally assume that a product must be of exceptional quality if it
can gain such an unexpected market success despite its high price.
Many brands offer positive emotional benefits of using a product that is
popular in the markets.
The value of a product or service can rise through increasing number of
users of the same product, e.g. number of members of an online community,
better availability of software for popular computer systems.
Negative effects of increasing market share on customer perception
For premium and luxury products, customers may translate an increasing
market share into a loss of exclusivity and thus perceive it as less valuable.
The quality of services may suffer if they are consumed by increasing
numbers of users. Diseconomies of scales and congestions can be observed with
busy airports and many other services so that customers may look out for other
providers that promise more timely service and convenience.
CONSUMER BUYING BEHAVIOUR
Definition: -
Buying Behaviour is the decision processes and acts of people involved
in buying and using products.
Need to understand:
Why consumers make the purchases that they make?
What factors influence consumer purchases?
The changing factors in our society.
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Consumer Buying Behaviour refers to the buying behaviour of the ultimate
consumer. A firm needs to analyze buying behaviour for:
Buyers reactions to a firms marketing strategy has a great impact on the
firmssuccess.
The marketing concept stresses that a firm should create a Marketing
mix (MM) that satisfies (gives utility to) customers, therefore need to
analyze the what, where, when and how consumers buy.
Marketers can better predict how consumers will respond to marketing
strategies.
Stages of the Consumer Buying Process:-
Six Stages to the Consumer Buying Decision Process (For complexdecisions). Actual purchasing is only one stage of the process. Not all decision
processes lead to a purchase. All consumer decisions do not always include all 6
stages, determined by the degree of complexity:-
1. Problem Recognition (awareness of need):-
Difference between the desired state and the actual condition,
deficit in assortment of products, hunger-food. Hunger stimulates your
need to eat. Can be stimulated by the marketer through product
information--did not know you were deficient? I.E., see a commercialfor a new pair of shoes, stimulates your recognition that you need a new
pair of shoes.
2. Information search:-o Internal search, memory.
o External search if you need more information. Friends and
relatives (word of mouth). Marketer dominated sources;
comparison shopping; public sources etc.
A successful information search leaves a buyer with possible
alternatives, the evoked set.
Hungry, want to go out and eat, evoked set is
o Chinese food
o Indian food
o burger king
o Klondike kates etc
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3. Evaluation of Alternatives:-
Need to establish criteria for evaluation, features the buyer wants or does
not want. Rank/weight alternatives or resume search. May decide that you
want to eat something spicy, Indian gets highest rank etc.
If not satisfied with your choice then returns to the search phase. Can youthink of another restaurant? Look in the yellow pages etc. Information from
different sources may be treated differently. Marketers try to influence by
"framing" alternatives.
4. Purchase decision:-
Choose buying alternative, includes product, package, store, method of
purchase etc.
5. Purchase:-
May differ from decision, time lapse between 4 & 5 product availability.
6. Post-Purchase Evaluation (outcome):-
Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made
the right decision. This can be reduced by warranties, after sales
communication etc.
After eating an Indian meal, may think that really you wanted a Chinese
meal instead.
Types of Consumer Buying Behaviour:-
Types of consumer buying behaviour are determined by:
Level of Involvement in purchase decision. Importance and intensity ofinterest in a product in a particular situation.
Buyerslevel of involvement determines why he/she is motivated to
seek information about a certain products and brands but virtually
ignores others.
High involvement purchases--Honda Motorbike, high priced goods, products
visible to others, and the higher the risk the higher the involvement. Types of
risk:
Personal risk
Social risk
Economic risk
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The four type of consumer buying behaviour are:
Routine Response/Programmed Behaviour:-
Buying low involvement frequently purchased low cost items; need very
little search and decision effort; purchased almost automatically. Examplesinclude soft drinks, snack foods, milk etc.
Limited Decision Making:-
Buying product occasionally. When you need to obtain information
about unfamiliar brand in a familiar product category, perhaps. Requires a
moderate amount of time for information gathering. Examples include
Clothes--know product class but not the brand.
Extensive Decision Making/Complex high involvement, unfamiliar,
expensive and/or infrequently bought products. High degree of
economic/performance/psychological risk. Examples include cars,
homes, computers, education. Spend allot of time seeking information
and deciding.
Information from the companies MM; friends and relatives, store
personnel etc. Go through all six stages of the buying process.
Categories that Affect the Consumer Buying Decision Process:-
A consumer, making a purchase decision will be affected by the followingthree factors:
1. Personal
2. Psychological
3. Social.
Personal Factors:-
Demographic Factors:-Sex, Race, Age etc.Who in the family is responsible
for the decision making? Young people purchase things for different reasons
than older people.
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Psychological factors
Psychological factors include:
Motives:-
A motive is an internal energizing force that orients a person's activities
toward satisfying a need or achieving a goal.
Actions are effected by a set of motives, not just one. If marketers can
identify motives then they can better develop a marketing mix.
MASLOW hierarchy of needs!!
o Physiological
o Safety
o Love and Belonging
o Esteem
o Self Actualization
Perception:-
What do you see?? Perception is the process of selecting, organizing and
interpreting information inputs to produce meaning. IE we chose what
info we pay attention to, organize it and interpret it. Information inputs
are the sensations received through sight, taste, hearing, smell and touch.
Selective Exposure: - select inputs to be exposed to our awareness.
More likely if it is linked to an event, satisfies current needs, intensity ofinput changes (sharp price drop).
Selective Distortion:- Changing/twisting current received information,
inconsistent with beliefs.
Advertisers that use comparative advertisements (pitching one
product against another), have to be very careful that consumers do not
distort the facts and perceive that the advertisement was for the
competitor.
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Ability and Knowledge:-
Need to understand individuals capacity to learn. Learning,
changes in a person's behaviour caused by information and experience.
Therefore to change consumers' behaviour about your product, need to
give them new information re: product...free sample etc. Learning is the
process through which a relatively permanent change in behaviour
results from the consequences of past behaviour.
Attitudes:-
Knowledge and positive and negative feelings about an object or
activity-maybe tangible or intangible, living or non- living.....Drive
perceptions Individual learns attitudes through experience andinteraction with other people.
Consumer attitudes toward a firm and its products greatly influence the
success or failure of the firm's marketing strategy.
Personality:-
All the internal traits and behaviours that make a person unique,
uniqueness arrives from a person's heredity and personal experience.
Examples include:
o Workaholics
o Compulsiveness
o Self confidence
o Friendliness
o Adaptability
o Ambitiousness
o Dogmatism
o Authoritarianism
o Introversion
o Extroversiono Aggressiveness
o Competitiveness.
Traits affect the way people behave. Marketers try to match the store
image to the perceived image of their customers.
Social Factors:-
Consumer wants, learning, motives etc. are influenced by opinion leaders,person's family, reference groups, social class and culture.
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Roles and Family Influences--
Family is the most basic group a person belongs to. Marketers must
understand:
o that many family decisions are made by the family unito consumer behaviour starts in the family unit
o family roles and preferences are the model for children's future
family (can reject/alter/etc)
o family buying decisions are a mixture of family interactions and
individual decision making
o Family acts an interpreter of social and cultural values for the
individual.
Reference Groups--
Individual identifies with the group to the extent that he takes on
many of the values, attitudes or behaviours of the group members.
Families, friends, sororities, civic and professional organizations.
Any group that has a positive or negative influence on a persons
attitude and behavior.
Social Class:-
Social class determines to some extent, the types, quality, and
quantity of products that a person buys or uses. Lower class people tend
to stay close to home when shopping; do not engage in much repurchase
information gathering.
Family, reference groups and social classes are all social
influences on consumer behavior. All operate within a larger culture.
Culture and Sub-culture:-
Culture refers to the set of values, ideas, and attitudes that are
accepted by a homogenous group of people and transmitted to the next
generation.
Culture also determines what is acceptable with product
advertising. Culture determines what people wear, eat, reside and travel.
Cultural values in the US are good health, education, individualism and
freedom. Culture affects what people buy, how they buy and when they
buy.
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Five Stages of Customer Bonding:-
This bond results from effective one-on-one communication, mutually-
beneficial interaction, the company's genuine interest and involvement in the
customer's life and lifestyle, a combination of customer allegiance and company
advocacy, and a shared sense of purpose.
Customer loyalty develops from personal relationships and trust between
the company and the customer over time. This includes keeping customers
involved throughout the product lifecycle as well as developing products and/or
services to meet changing customer needs and desires.
AWARENESS:-
The art of earning customer "share-of-mind" involves creating an
impression of personal identification with the company's products and/or
services.
This first stage, awareness, represents the weakest aspect of a
relationship because it is non-interactive and depends entirely on the
customer's perception.
IDENTITY:-
The identification stage occurs when a potential customer asks the
question, "What's in it for me?"
A customer identifies a product of service as meeting one or more
important personal needs, such as self-fulfillment, status, or belonging.
A customer may perceive the company as having values and preferences
similar to his own and begin to form a relat ionship with the company.
RELATIONSHIP:-
At this stage, the customer receives the benefit of products and/ or
services tailored specifically to his individual needs (at least as nearly as
the company can provide).
Once a customer interacts with the company, repeated experiences of
individual customer satisfaction take on significant importance.
Customers expect that products will work and that they will receivegood service. Customer delight results largely from how a product is sold
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marketer to carry out the business in such a way that they give satisfaction to
consumers needed. When a firm markets a product or service it should aim to
enjoy consumers satisfaction & profit maximization.
Concept & Need for Studying Consumer Behavior:-
Consumer behavior can be said to be the study of how individual make
decision on how to spend their available resources (time, money, effort) on
various consumption related items. This simple definition of consumer behavior
tells the markets to resolve every activity around the ultimate consumers &
gauge their behavior by specially focusing on:
Who buys products or services?
How do they buy products or services?
Where do they buy them?
How often they buy them?
Why do they buy them?
How often they use them?
These questions will help in understanding better what factors influences
the decision making process of the customers. The decision making process
identifies the number of people who are involve in this process & describes a
role to them like users, decides, influences & buyers.
It is believed that consumers or customers make purchase decision on the
basis of receipt of a small number of selectivity chosen pieces of information.
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Thus it will be very important to understand what & how mush them to evaluate
the goods & services offerings.
Customer Expectation:-
Customer expectation through look realistic is very often build upon on a
very high platform. Then the quality of the product or services may not match
the expectation. This again will affect the consumer satisfaction level.
So as to reduce the level of dissatisfaction among the customers, the
marketing decision maker could adopt approaches wherein he can classify
market in relation to the degree of opportunity to deliver customer satisfaction.
He could establish itself common factors & them evaluate each market
opportunity against these. The most probable factors which influence
consumersbehaviours are:
Market size
> Rate of growth of the market
> Stability of demand
> The due importance attached to price by the consumers before making a
purchase decision
> Consumer emphasis & the due importance given to the quality aspect
> The consumers desire for product innovation
> The level of competition (inclusive of both existing & potential
competitors)
> The firms competitive strengths in terms of price &product
Customer Focus:-
Many companies today have a customer focus (or customer orientation).
This implies that the company focuses its activities and products on consumer
demands. Generally there are three ways of doing this: the customer driven
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approach, the sense of identifying market changes and the product innovation
approach.
In the consumer driven approach, consumer wants are the drivers of all
strategic marketing decision. No strategy is pursued until it passes the test of
consumer research. Every aspect of a market offering, including the nature of
the product itself, is driven by the needs of potential customers. The starting
point is always consumer. The rationale for this approach is that there is no
point spending R&D funds developing products that people will not buy.
History attested to many products that were commercial failure in spite of being
technological breakthroughs.
Customer Loyalty:-
It takes a lot less money to increase your retention of current than to
find new ones but I know I dont give it as much effort as I should because it
does take a lot of energy and effort.
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CHAPTER 3
SCOPE AND
OBJECTIVE OF THE
STUDY
SCOPE OF THE STUDY
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As learning is a human activity and is as natural, as breathing. Despite of
the fact that learning is all pervasive in our lives, psychologists do not agree on
how learning takes place. How individuals learn is a matter of interest to
marketers. They want to teach consumers in their roles as their roles as
consumers. They want consumers to learn about their products, product
attributes, potential consumers benefit, how to use, maintain or even dispose of
the product and new ways of behaving that will satisfy not only the consumers
needs, but the marketers objectives.
The scope of my study is restricted to COUNTRY MILK dairy products
only.
OBJECTIVE OF THE STUDY
a. To study how frequently people use dairy products
b. To know the most preferred company for buying dairy products
c. To study the satisfaction level of customer regarding Country
Milk products.
d. To study the factors affecting the consumption pattern.
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CHAPTER 4
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Research refers to a search for knowledge. This research defines the
problems of retailers and perception of citizens.
Research comprises defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the
conclusions to determine weather they fit the formulating hypothesis.
It presents the research design, sampling procedure, tools of
investigation, collection of data and the limitations of the study.
RESEARCH DESIGN:-
A descriptive research design was used for the present study. Since the
study was not to find relationship between various factors but to draw
inferences about causation. The design was used to produce a picture of the
factors which affect retailers and consumers to purchase the product.
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DATA COLLECTION
Sources of Data Collection:
Primary data: -Primarydata was obtained through questionnaire. The
questionnaire was designed keeping in view the objectives of the study.
It contains both open ended and close ended questions. Questionnaire
was filling by the citizens.
Secondary data: -Secondary data was obtained from newspapers,
books, annual reports of Country Milk and from internet.
Sample design:-
Population: Girls of SVIET hostel
Sampling unit: More than 17 years
Sample Size: 100 respondents
Sampling Technique: Non-probability:Convenience sampling
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CHAPTER 5
DATA ANALYSIS
AND
INTERPRETATION
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INTERPRETATION: - It is clear from the figure that there are 22%
people who purchase the flavored Milk mostly. There are 15% people
who purchase the flavored lassi, 16% people purchase mango rassila,
7% people use Yoghert fruit drink, 15% people purchase curd, 7%
people purchase cheese, and 6 people purchase Kheer and 12% people
like to purchase Kaju Pinni.
No. of respondents
22
15
16
7
15
76
12
0
5
10
15
20
25
Flavored
milk
Flavored
lassi
Mango
Rassila
Yoghert
fruit
drink
Curd Cheese Kheer Kaju
Pinni
No. of respondents
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Q4 How often you use the dairy products of Country Milk?
Once in a week ( ) More than once in a week ( )
Once in a month ( ) More than once in a month ( )
Occasionally ( )
TABLE 4.1
Consumption No. of respondents
Once in a week 7
More than once in a week 60
Once in a month 2
More than once in a month 27
Occasionally 4
Total 100
FIGURE 4.1
No. of respondents
7
60
2
27
4
0
10
20
30
40
50
60
70
Onceina
week
Morethan
onceina
week
Onceina
month
Morethan
onceina
month
Occasionally
No. of respondents
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INTERPRETATION: - It is clear from the figure that 7 consumers purchase
the milk products once in a week, 60 consumers purchase the milk products
more than once in a week, 2 consumers purchase the milk products once in a
month, 27 consumers purchase the milk products more than once in a month
and 4 consumers purchase the milk products occasionally.
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Q6 What factors do you consider while purchasing the Country Milk dairy
products?
Price ( ) Quality ( )
Taste ( ) Brand ( )
TABLE 6.1
Factors No. of respondents
Price 22
Quality 45
Taste 18
Brand 15
Total 100
FIGURE 6.1
INTERPRETATION: - The above table and graph shows that 22 consumers
are satisfied with the price of the milk products, 45 consumers are satisfied with
the quality of milk products, 18 consumers are satisfied because of taste of the
products and 15 consumers like to buy the products because of brand name.
No. of respondents
22
45
1815
0
5
10
15
20
25
30
35
40
45
50
Price Quality Taste Brand
No. of respondents
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CHAPTER 6
FINDINGS
OF
THE STUDY
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FINDINGS OF THE STUDY
Consumers like to purchase Country Milk products more than once in a
week.
Consumers prefer to purchase Country Milk dairy products than other
companys products.
Most of the consumers are satisfied with the use of Country Milk
product.
Consumers prefer to purchase Country Milk products because of better
quality.
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CHAPTER 7
RECOMMENDATIONSAND
SUGGESTIONS
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SUGGESTIONS AND RECOMMENDATIONS:-
This chapter presents the recommendations or suggestions,these are: -
The first suggestion is improving the advertisement agenda. Moreelectronic media advertisement would help Country Milk to increase its
sales.
The packing of the tetra packs of Country Milk should be according to
the packing of Coke, Limca, Fruity and Pepsi.
The company should emphasize on promotional schemes and marketing
activities.
The company should focus on the quality and also maintain it.
Sales promotion schemes for the consumers should be made.
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CHAPTER 8
CONCLUSION
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CONCLUSION
Based on the detailed analysis and interpretation (done in previous
chapter) of the data collected, this chapter presents a summary of the research
through the following conclusions related to the area of study: -
Country Milk has good brand image. Other brands like Nestle, Amul are
lower than the Country Milk. Consumers prefer Country Milk more than
other brands because it is a local company.
There are 66 respondents who are satisfied with the use of products.
Mostly consumers prefer flavored milk than any other products.
Mostly consumers like to buy the products because of better quality.
Consumers use Country Milk products daily, weekly and monthly. But
there are rare consumers who use these products occasionally.
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CHAPTER 8
LIMITATIONS
OF
THE STUDY
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LIMITATIONS OF THE STUDY
1. The study is unable to escape the usual limitations due to constraints of
Time, Money and other resources.
2. The response of respondents may or may not represent their own
responses.
3. Most of the respondents were busy with their own routine and they
have no or less time to fill up the questionnaire.
4. Some of the units in the sample may not be the true representatives of
the population.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Kothari, C.R., Research Methodology, 2nded, Wishwa Prakashan, 2003
Katler,Phiplip, Marketing Management, 11th ed, Pearson Education,
2003
Sexena, Rajjan, Marketing Management, 1st ed., Tata McGraw hill,
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WEBSITES:-
http://www.milkfed.nic.in/mark.htm
http://www.Country Milkfoods.com/home.htm
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ANNEXURE
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QUESTIONNAIRE
Q1 Do you use the dairy products?
Yes ( ) No ( )
Q 2 Which Companys dairy products do you use? Please rank.
Country Milk ( ) Nestle ( ) Amul ( )
Wonder ( ) Rajat ( ) Uttam ( )
Others ________________________
Q 3 Please tick the name of the products used by you?
Flavoured milk ( ) Flavoured lassi ( )
Mango Rassila ( ) Yoghert fruit drink ( )
Curd ( ) Cheese ( )
Kheer ( ) Kaju Pinni ( )
If other please specify __________________________
Q 4 How often do you use the products of Country Milk mentioned below?
Once in a week ( ) More than once in a week ( )
Once in a month ( ) More than once in a month ( )
Occasionally ( )
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Q 5 How much quantity do you use approximately in a month?
0-10 ( ) 10-20 ( )
20-30 ( ) above 30( )
Q6 Which factors do consumers consider while purchasing the Country Milk
dairy products?
Price ( ) Quality ( )
Taste ( ) Brand ( )
Q 7 How much are you satisfied with Country Milk s products mentioned
below?
Very satisfied ( ) satisfied ( )
Neutral ( ) dissatisfied ( )
Q 9 Any suggestion, if you have?
_______________________________________________________
_______________________________________________________
Personal information
Name_______________________Address__________________________
Ph.No._______________
Thanks for sparing few minutes to fill the Questionnaire.