INTRODUCTION Early morning millions of Indians wake up to find their daily requirements of milk waiting at their doorsteps. Across the country, the Vijaya range of dairy products milk butter cheese, Gee, Spread find their way into millions of home in the metros, cities, towns and even the teeming rural populations. Milk is the nourisher of life. And it was this elixir that brought forth-significant changes in the lives of the people of Andhra Pradesh. It changed the way of people looked at life in rural India. But most of all, it renewed their hopes and raised their aspirations. And so when the white revolution looks place, nothing could stop the flood. People from all walks of life joined the young and the old, women, men, and children and a movement had begin, Heralding a new dawn for the people, whole lives now took on a different meaning. The main thrust was not in just supplying, milk but also living opportunities to improve the quality of rural life. And may be for the first time allowing them to dream. 1
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INTRODUCTION
Early morning millions of Indians wake up to find their daily requirements of
milk waiting at their doorsteps. Across the country, the Vijaya range of dairy
products milk butter cheese, Gee, Spread find their way into millions of home in the
metros, cities, towns and even the teeming rural populations.
Milk is the nourisher of life. And it was this elixir that brought forth-
significant changes in the lives of the people of Andhra Pradesh. It changed the way
of people looked at life in rural India. But most of all, it renewed their hopes and
raised their aspirations. And so when the white revolution looks place, nothing could
stop the flood.
People from all walks of life joined the young and the old, women, men, and
children and a movement had begin, Heralding a new dawn for the people, whole
lives now took on a different meaning.
The main thrust was not in just supplying, milk but also living opportunities to
improve the quality of rural life. And may be for the first time allowing them to
dream.
1
CUSTOMER SATISFACTION
Customer satisfaction is an abstract concept and the actual manifestation of the
state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological
and physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other factors
the customer, such as other products against which the customer can compare the
organization’s products. The usual measures of customer satisfaction involve a
survey with a set of statements using a Likert Technique or scale.
DEFINITION
According to Peter Drucker, a company’s first tasks are “to create customers”.
Today’s customers face a vast array of product and brand choices prices and suppliers
making it difficult for them to make choice. It is believed that the customer estimated
which offer delivers the maximum vale. Customers are value maximizes with in the
bounds of search costs value and act on it. Whether or not the offer lives up to the
value expectation affects both satisfaction and repurchases probability.
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NEED FOR THE STUDY
Since the time Milk and Milk Products occupied a prominent position in your
diet as well as our socio-cultural rituals, Milk is considered to be the important food
among all the food products. It is the best source of nutrition, in fact and it is a
complete food consisting of proteins and vitamins.
Milk is used for different purpose in our daily life, in highly developed
countries, milk and it its products constitute and important part of daily diet of people.
Therefore those people enjoy freedom from diseases concerned with, malnutrition,
which is commonly found in our country.
Indian economy is dominated by agricultural sector. Dairy land animal
husbandry forms are very important activity of its farmers. India’s carry out their
agriculture through out the year. Certain activities such as dairying sheep rearing,
poultry etc are to be taken up by the farmers to learns their livelihood.
Major part of milk is produced in rural areas where as the demand for lit is
from the urban side. The urban areas have high density of pollution, which is
engaged in non agriculture activities, hence the urban people have to depend upon
rural areas for the supply of milk generally the urban consumers receive milk from
private milk venders who come from villages to supply milk.
Dairying in India remained an un-organized industry till the end of 19 th
century being restricted to rural production centers due to lacks of chilling,
processing, and transport and marketing facilities.
Milk is essential product for making Milk, Curd, Butter, Ghee etc are used
everyday by everyone home, so these products should be available in a required time
for the people. When these products are essentially the production concern has to
produce in required time if it has to produce in a required time its business has to run
smoothly.
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OBJECTIVES
1. To study the factors that lead to customer satisfaction
2. To study the customers opinion on the quality of products and services
3. To analyze customer assistance render by Model Dairy sales persons.
4. To study the aspects relating to maintenance and cleanliness of products.
5. To find out the preference of “Model Dairy” products in Eluru and
Viajayawada areas.
6. To find out the factors which influence the customer’s purchase decision.
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METHODOLOGY: The data collected for the preparation of the dissertation is gathered from to
sources which include primary and secondary.
Primary Sources of Data:
Majority of primary data is gathered by making a sample survey of 100
Respondents. The summary was carried out in Vijayawada City during the
month of May to June 2015 .
Secondary Sources of Data:
A part of the data is also gathered through the secondary source which
includes company website, magazines and other published articles and text
books.
SAMPLE SIZE:
Sample size is taken up to 100 respondents
SAMPLE DESIGN:
Simple random sampling technique has been followed to select customers of
Model Dairy ,Vijayawada.
SAMPLE TECHNIQUE
Percentage method is chosen as a statistical tool for analyzing the data that is
collected from customers.
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LIMITATIONS
Every study is conducted under some limitations. Some of the limitations of
the study are as follows:
Time is an important limitation. The whole study was conducted with a period
of two months and a sincere attempt was made to collect the information to the
maximum possible extent.
1. Some of the customers did not respond properly and refused to give correct
information as they were unaware of it and they were not interested to reveal
the facts because of their busy schedule.
2. Time period is short that in 2 months, within this time the more data could not
be collected.
3. There is no satisfactory response from the Company outlets.
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INDUSTRY PROFILE
INDUSTRY SCENARIO
India is known to be an agricultural economy. Indian Agriculture supports
about 65% of its population. Dairy and livestock sectors play a pivotal role in India’s
Agro based economy. Animal husbandry and dairy development has greater
prominence in Rural Economy. The dairying is subsidiary to agriculture and practiced
since time immemorial.
Milk is the leading agriculture produce and world’s most important and
versatile food. There was no market facility for the surplus milk produced in village in
the olden days. The market was in the hands of a middleman called vendor who
operates between producer and consumer in those days. The producer was exploited
by the vendors.
The marketable surplus in the rural area and the rapid urbanization in the
country led to organize projects for surplus milk procurement from the villages and to
supply pasteurized liquid milk to the needy urban and semi-urban consumers.
Government of India realized the necessity of increasing milk production and
bi-products there by availing substantial job opportunities to the urban and rural
community. The government has also recognized the need for getting of additional
income and employment opportunities to the rural and urban people.
The Government of India has focused much more attention on Dairy
Development programmer by allocating more funds in the IV and V five year plans.
The Government of India during 1970 have launched massive programmer i.e.,
OPERATION FLOOD.
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OPERATION FLOOD PROGRAMME IN INDIA
In order to build a viable and self sustaining national dairy industry and
cooperative lines the NDDB launched a project christened operation Flood mobilized
from the sale of products based on foreign food donations in the form of skim milk
powder and butter oil. Operation Flood, the largest development programmed under
taken in the world, was initiated closely on the heels of Green Revolution in title
country. Against the back drop of huge surplus of milk production in the highly
developed milk producing countries in the west and dwindling per capita. Milk
availability at home with its pledge to provide milk to one and all, it was considered
the world’s largest dairy development programmer. It spurred the Indian dairy
Industry to launch a “White Revolution”.
The establishment of milk producers off co-operative societies to link dairy
development with milk marketing formed the central plant of the project which gave
into a vigorous milk co-operative movement under the basis of NDDB. This was
a unique development effort which was initiated at the grassroot level the villager and
went up to the “Dairy Federation” of a stale with its operational effectiveness
ascending at every step.
According to the agreement signed by world Food Programme ( WFP) and
Government of India, the WFP will arrange to supply 1,26,000 metric tones of buffer
oil which the corporation will handle on behalf of the Government utilization of
commodities would generate funds estimated at It’s.954 millions during lie project
period. These funds are to be invested in the plan of operations agreed by the WFP in
government.
The project aims at the improvement of milk marketing in the organized sector
especially in the four major cities extended over ten states i.e., Punjab, Haryana,
Rajasthan, Utter Pradesh, Bihar, West Bengal, Tamil Nadu, Andhra Pradesh,
Maharashtra&Gujarat.
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Phase Operation Operation Operation
Flood-I Flood-II Flood-III
Duration July 1970 to April 1975 to April 1985 to
March 1975 March1985 March 1990
The importance of dairy development in India was recognized internationally
in the holding of the 58th Annual Session of the international (IDC) at New Delhi in
1974. The 19th International Dairy Congress was a particular significance to India as
its main theme was “Dairying as an Instrument of social and Economic Change”.
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NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)
At the time of industrialization at cattle feed factory at kanjari in October,
1964. The late Shri Lal Bahadur shastri, the Prime Minister of India paid an
unscheduled visit to milk production co-operative societies and stated there overnight.
He was impressed by the socio-economic changes brought by milk co-operatives in
Krishna District, And desired to have a National Dairy Development Board is the
Chief Executive of the organization who is supported by professionals to carry out
board’s activities.
Thus the NDDB was setup under the empowerment of ministry of agriculture
and irrigation, government of India in September 1965 under the society registration
Act 1860 and the Bombay Trust Act, 1950. The president of India nominates the
Board of Directors including chairman, secretary; NDDB is the chief of the
organization.
DAIRY INDUSTRY IN INDIA
India has the world’s largest cattle and buffalo population adapted to tropical
climate and poor nutrition and environment. According to Livestock census 1982,
India’s bovine population was 191 million cattle and 69 million buffaloes. The
forecast for 2000 A.D is 204 million cattle an 78 million buffaloes. Milk production
gives employment to 70 million dairy farmers. In term of total production India ranks
2nd to USA with a production of 71 million tons in 1997-1998. The production of
various dairy products in 2002, 428 (000’metric tones).
APDDCF was formed in October 1981 to implement operation flood-II
program through involvement of producers in organizing milk production
procurement, processing and it will low due to rapid population growth. It was 178
grams/day in 1990. There was only an increase of 50 grams per day from 1980 to
1990. It is expected that milk availability will reach 213 gram/capita/day by 2000
A.D as against 300 grams, the optimum recommended by the health scientists. Today
India ranks first in milk production in the world.
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Dairy Plants in India
In this section dairy plants are listed alphabetically and region wise, including
liquid milk plants and product manufacturers, both Western and indigenous, in the
public cooperative and private sectors. The address, phone and fax numbers, list of
products manufactured and capacities and other details of these plants can be obtained
from Dairy India 1997 or from us.
1. Dairy Plants in Northern India
2. Dairy Plants in Eastern India
3. Dairy Plants in Southern India
4. Dairy Plants in Western India
NORTHERN INDIA
States No. of Companies
Chandigarh 1
Delhi 18
Haryana 23
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EASTERN INDIA
States No. of Companies
Andaman & Nicobar 1
Assam 2
Bihar 8
Madhya Pradesh 10
Manipur 1
Mizoram 1
Nagaland 1
Orissa 4
Sikkim 1
Tripura 1
West Bengal 18
SOUTHERN INDIA
States No. of Companies
Andhra Pradesh 24
Karnataka 18
Kerala 2
Pondicherry 2
Tamil Nadu 10
WESTERN INDIA
States No. of Companies
Goa 2
Gujarat 45
Maharashtra 71
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A.P DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION
APDDCF was firmed in October 1981 to implement operation flood-II
program through active involvement of producers in organizing milk production,
procurement, processing and marketing on “three-tier” cooperative structure as per
the national policy of Government of India.
The three-tier system consists of primary dairy is operative societies at village
level, co-operative unions at district level and federation at the state level.
ROLE OF DAIRY CO-OPERATIVES:
The milk co-operative of India had a many impact on the economic social life
of the district within which they operate. Apart from providing supplementary
income to the milk produces, the liquidity generated by the scale of milk has also
began to transform the nature of agricultural economy had help in certain cases,
entrepreneur families to start commercial ventures in various emerging small town of
the district. Over the year as the milk co-operative penetrated deeper in to social and
economical hierarchy of roller communities, they own compos ion began to change.
Then they come to have, in a increasing number. Marginal and small land holders as
members the principle on which they are based helped them to build gradually a
demand responses relationship between themselves and there office-bearers and
bureaucracy at various levels of administration. This Co-operative Dairying also
provided women with new roles and functions in animal health are, health and
hygiene for there families and in an increasing measure, participation in various
decision making bodies connected with dairying. Dairy Co-operatives also fit most
appropriately in the country’s programme as increasing milk production income, rural
employment and distributive justice. With the help of Dairy co-operatives the annual
milk production has more than doubled in last two decades from about 19.6 million
tones in 1969-70, to the level of 43.9 million tones during 1986-97 the milk
production was 46.1 million tones during 1987-88 which exceed the target of 45.9
million tones in 1988-89. For these reasons the Dairy Co-operatives are turned as
“CATALYSTS” for economic and social change rural India.
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COMPOSITION OF MILK AND LEGAL STANDARDS:Milk is defined as lacteal secretion obtained from the animal 15 days before
and 5 days after parturition.
P.F.A. Standards of Milk:
Cow milk : 3 to 4% fat, 85 to 90% S.N.F.
Buffalo Milk : 5 to 6% fat, 90% S.N.F.
Toned Milk : 3% fat, 8.5% S.N.F.
Doubled tone milk : 1.5% fat, 9% S.N.F.
Standardized Milk : 5.4% fat, 8.5% S.N.F.
AVERAGE COMPOSITION OF MILK:
COW BUFFALOW
WATER 86.6 84.2
FAT 4.6 6.6
PROTEIN 3.4 3.9
LACTOSE 4.9 5.2
ASH 0.7 0.8
BACTERIOLOGICAL STANDARDS:
SPC/ML GRADE
Not exceeding 2,00,000 Very Good
Between 2.10 lakhs Good
Between 10.5 lakhs Fair
Over 50 lakhs Poor
HUMANIZED MILK:
According to the US public health service, manner has to insure breakup of the
fat globules to such an extent that after 48 hours quiescent storage visible cream
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separation occurs on the milk and the fact percent milk in the top 100ml of does not
differ by more than 10% of it itself from the remaining milk. Fat globule size – 2 per
disc.
PLANNING INVESTMENT IN OPERATION FLOOD-II
I plan - 34.43 Crores
II plan - 247.53 Crores
III plan - 187.00 Crores
IV plan - 349.17 Crores
V plan - 1166.00 Crores
VI plan - 600.00 Crores
VII plan - 1700.00 Crores
15
Milk Products
The surplus milk after meeting requirement of the liquid milk is being
converted into products like food, milk powder, Ghee, Butter, Sterilized milk,
doodhpeda, etc. All these products subject to strict quality control before being
dispatched.
The A.P Dairy Development Federation has got 6 product-manufacturing units
in the A.P., namely:-
1. Milk Products Factory, Hyderabad
2. Milk Products Factory, Chittor
3. Milk Products Factory, Nandyal
4. Milk Products Factory, Proddutoor
5. Sangam Dairy, Vadlamudi
6. Milk Products Factory, Vijayawada.
The marketing division of the federation is doing marketing of the milk
produced by the above units. Public relations advertisement, training are controlled
by the Joint Director (Training & Marketing). The marketing wing consists 38
members of employees presently.
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DAIRYING IN ANDHRA PRADESH
The program of dairy was initially started with the commendable help of the
United Nations International Children’s Emergency Fund (UNICEF), Food and
Agriculture Organization (FAO) and Freedom from Hunger Campaign Organization
of the UK. These organizations assisted a lot of establishment of dairy units at
Hyderabad and Vijayawada’s in 1967 and 1969, respectively which led to pioneer
dairy development program in Andhra Pradesh. Later a set of cooling and chilling
centers have been setup to feed these gigantic units.
The milk producers have been facing eith a lot of problems in the process of
production and marketing of milk, improper transport facility, poor technology, and
absence of price particularly during flush period etc., It was at this context the
Government of Andhra Pradesh has viewed to constitute a dairy development
corporation. More than 3.5 lakhs milk producers get 20crore rupees per annum for
supplying of milk of which 69% of total benefices belongs to small and marginal
farmers, agricultural labour and other weaker section of the rural community.
With all these efforts by APDDC and NEED today Andhra Pradesh has an
excellent potential for production with progressive farmers who are more receptable
to the new technology and scientific practices. The estimated milk production is
40lakhs liters per day. Today a strong wave of white revolution is sweeping creating
a new hope of eliminating socio economic imbalances. Andhra Pradesh is poised to
be the Dairy land of India playing an important role on the National milk grid.
With the implementation of operation flood II program in Andhra Pradesh the
tempo of dairy development has gained a momentum providing a thrust to eradicate
poverty and unemployment in rural areas brought greater awakening and confidence
among the producers to manager their own affairs through dairy cooperatives of
Andhra Pattern. The Dairy federation is marching ahead with dairy cooperatives to
herald a new era of prosperity.
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Financial Assistance
The National Cooperative Development Corporation (NCDC) has been
providing financial assistance to dairy cooperatives for organizing medium and small
sized dairy processing plants and milk chilling centers. The corporation has
sanctioned a total loan assistance of Rs.633 lakh for establishment of 29 cooperative
dairy units comprising 17 chilling centers and 12 cooling centers.
Dairy Industry in Krishna District
Dairy occupies second place in earning livelihood next to agriculture in
Krishna District, as the cattle wealth in this district is more. The Dairy Development
Union after changing different management systems is now stepping into cooperative
sector to help the small and backward farmers by making them members of the union.
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Genesis
Krishna District with its large area claims notable place in agricultural
activities. It is a long time aptitude for the agricultural farmers to possess dairy cattle
along with cattle for agriculture. This aspect has drawn the attention of the officials
of UNICEF, FAO and Government of India. After analyzing the dairying prospects,
they expressed the view that there could be bright future for dairy scheme in Krishna
District. Accordingly a survey was undertaken to explore the market for surplus milk
in 1960-1961. This marks the first step in developing the dairy industry in the state.
19
COMPANY PROFILE
Model Dairy is being established in NIDAMANURU, near Vijayawada,
Krishna District that is 10kms away from the Vijayawada city. The area covered
under the Dairy is 2 acres, which is adjacent to the national highway of Viajayawada,
Calcutta National Highway No.5. The greatest advantage of the locality is its
proximity to both production area and marketing area. The area also has the
advantage of hygienic surroundings with absolutely no pollution and excellent
drainage facilities. It also has the facilities of regular power and water supply.
The production potential of the area is very high. Statistics reveal that only
30% of the milk production in the district in being procured and handled by the
Krishna Milk Union. More than 40% of it is being handled by vendors and very small
scale organization. Therefore procurement of milk may not be a problem and does
not in any way disturb running or operative and organized sector. The area has a very
large marketing potentiality also, with a city like Vijayawada and large towns like
Guntur, Eluru etc. The growing demand in these areas provides potential for market.
20
BIO-DATA OF THE DIRECTORS:
Sri. P. Dhana Prakash: Managing Director.
Mr. Dhana Prakash is 40 years a dynamic M.B.A. Post Graduate. He is holding the
shares in several companies along with management of M/s. Model Gratings Pvt.
Ltd., and M/s. Supreme wires and Granite line of activity from 1988. He is in
executive and managerial activity and he has got good contact with the farmers in the
near by villages of Gannavaram area. He came from agricultural family and having
agricultural lands in Jaggaiahpet area, Anantapur district and Bellary District. He is
very much interested in agricultural and in food products. He is holding several
companies shares in the self-management companies like M/s. Model Steel Pvt. Ltd.,
Model Gratings Pvt. Ltd., Model Alloy Steel Pvt. Ltd., Supreme Wires and Pearl
Granites etc. and he is looking after - to – day affairs.
WHAT DOES MODEL DAIRY ASSURES? OR QUALITY IS
THE KEY:
Quality products with a large choice. Fluid milk will be marketed with many
compositions so that the consumers have great choice of selection according to
“Quality” the main motto of the Dairy is “Quality” Model Dairy assures high on the
needs. The various products marketed will be:
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WHOLE MILK:Fresh, pasteurized whole milk with full fat and milk solids and processed very
hygienically with minimum bacterial load.
STANDARDIZED MILK:
Fresh, pasteurized to a fat percentage of 4.5 and SNF of 8.5%.
TONED MILK:
Pasteurized and standardized to 3.0% fat and 8.5%
HOMOGENIZED MILK:
Standardized milk will be homogenized using a two-stage homogenized,
which consists of value, which affectively breaks down the fat globules and inhibit
clumping of fat globules. This increases the total surface area covered by the fat and
there by the apparent of milk increases. The result is a very thick and vislows milk,
more whiter in color and is part from thickness is that no cream layer i.e., formed
even on storage and consistency of milk remains constant and uniform. The only
disadvantage is that fat can not recovered from the returned milk. Homogenized milk
forms soft curd which very palatable and easily digestible.
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SAFELY ASPECTS:
All Model Dairy products are properly pasteurized to ensure complete
destruction of all pathogenic organisms. Processing is carried out under extremely
hygienic conditions avoiding contamination.
CONVENIENCE ASPECTS:
Model Dairy products will be brought in convenient size and shape packaging
and will be delivered at home at very early hours at the day. This avoids unnecessary
confusion at the booth and lot of inconvenience to the customers.
NOTE:
Regular and timely supply of fresh, whole some and hygienic products is the
aim of the Model Dairy.
CAPACITY:
The company has got installed capacity to handle 50,000 ltrs per day.
INFRASTRUCTURE:
The company having 3500 sq.ft. R.C.C. building and vacant land of 2.0 acres
in good environment location.
23
WATER:
There is plenty of under-ground water, without any hardness. The unit is
situated between the Budameru channel and Rivas water channel. Water will be
available with in a depth of 20fts. And the water will be available without any
additional cost.
POWER:
The electricity of H.T. and L.T. will be available immediately and easily as the
new substation of H.T. supply is under construction at Nidamanuru below 500mts.
Distance and their will not be any additional; cost in electricity line and the unit is
going to have a separate line from substation for uninterrupted supply.
SERVICES AND DISTRIBUTION:
The management has planned to sachet-packet milk to door delivery through
closed vans in area-wise in bulk through sealed cans to hotels and canteens and needs
by way of mini-vans.
SUBSIDY:
The unit has got the provision of capital investment of 15% and 25% of power
subsidy for 3 years and 100% sales tax subsidy for 5 years or 100-fixed capital cost
which ever is lower.
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EQUIPMENT1. Chain conveyor: Is required for moving the cans mechanically from the point
of reception on the dock to the weigh bowl.
2. Weigh Bowl and dump tank: The cans are removed from the conveyor and
milk is transferred to the weigh bowl which then passes into the dump tank
after the weigh is registered.
3. Milk Pumps: At various stages of processing, milk pumps are being used to
pump milk in or out of the equipment. Pumps with various HP motors are used
to suit the capacity of the equipment. (1 H.P. and 3 H.P.motors)
4. Can Washer: for efficient and fast cleaning of cans, the rinsing to water
rinsing, alkali rinsing all take place in an orderly sequence.
5. Plate chiller: The milk from the dump tank is chilled in a plate chiller to less
than 10 degrees centigrade to retard the bacterial growth. The chilled milk is
store in a strong tank at this temperature until it is pasteurized.
6. Stored in Strong Tanks: Of 50,000 liters capacity, milk is storage tanks until
next operation is commenced i.e., before and after pasteurization, chilling etc.
7. Pasteurizer: A plate heat exchanger is used as pasteurized to pasteurize milk to
72 degrees centigrade and the milk is held at this temperature for 15 seconds
and is immediately cooled to 5 degrees centigrade. The pasteurizer consists of
5 sections: Registration, the heating section, the holding section, the second
regeneration section and the cooling section. This ensures good regeneration
capacity and saves energy.
Capacity ---------------------- 5000 LPH.
8. Cream separator 1000LPH
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A portion of milk is subjected to separation to remove excess fat from the
milk. The skim milk is added back to whole milk after calculating the
required amount.
9. Packaging machine: Double headed – 4800 LPH.
The pasteurized milk is packed in 500 ml. Packs in a double-from fill-seal
packaging machine.
10. Cold Store: The cold store, which maintained at temperature of around degree
centigrade is used for storing milk after packing until dispatch.
11. Homogenizer: 1000LPH capacity. It is carried out to break the clumps of fat
globules and to reduce the fat globule size carried out at temperature of around
55-60 degree centigrade and pressures 2500ps in the 1st stage and 500ps in the
2nd stage.
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CHOOSE OF EQUIPMENT
In Indian Dairy machinery has got equal standard with imported one. In this
widely scattered Market as follows: Some leading companies are supplying in
unbelievable. They are
1. ALFA-LEVEL INDIA LTD., PUNE.
2. H.M.T. LTD.,
3. FILTRAN ENGINEERS (P)., PUNE.
4. JECTRON ENGINEERS (PO) LTD.,
The above companies are supplying each and every item. In the above
suppliers, we have chosen ALFA a level India Ltd., for main machinery and M/s.
Filtran Engineers Co. for auxiliary equipment.
The hot water generate order was place on P.E.C. Engineers Ltd., who are the
experts in the boiler in Dairy Field.
The balance small S.S. Fabricants items will produced from KADAM
ENGINEERS, Satara, who are the leading fabricator in the Industry.
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FLEXIBILITY OF EQUIPMENT
As far as equipment was concerned in the company, it was more flexible to
make required items.
1. Skim milk (for slim and for Diabetes)
2. Toned milk with 3% fat.
3. Doubled toned milk with 1.5% fat and 8.5% SNF
4. Standardized Milk with 4.5% fat and 8.5% SNF
5. Whole milk with 7% fat and 8.5% SNF
6. Homogenized milk with 4.5% fat and 8.5% SNF
We can produce above items as required parameter of product mix and as per
market demand.
Regarding SNF soils not fat was standardized at 8.5%
There was flexibility to change the above percentage, but as per Indian milk
market normal supply will be at 8.5% SNF as far as Fat concerned we can supply with
required percentage as per orders.
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FIRM’S CONDITIONS
ASSUMPTIONS MADE FOR WORKING OUT PROFITABILITY AND CASH
FLOW STATEMENTS OF THE UNIT.
1. The unit is expected to complete civil works and install plant and machinery
by August, 94. Commercial production is expected for September 94.
2. Installed capacity:
Number of days ……………………… 365
Number of shifts ……………………. 3
Duration per shift ………………….. 8 hours
3. Turnover: 1 st year Rs.210.03 Lakhs including by products of Ghee for
Rs.40.09 lakhs. Whole milk Rs.8/- per liter Rs.169.94 lakhs per year.
4. The unit is assumed to work at 60%; 80%; 100% of installed capacity during
the first second and third years onwards respectively.
5. Raw milk costs at installed capacity is calculated as follows:
1. Raw milk (6% fat) ……………………. Rs.6.4 per liter
2. Agent Commission ……………………. Nil
6. Wages and salaries amount in Rs.3.40 lakhs during the first year; 4.08 in second
year and Rs.4.89 in third year and are increased by 20% every subsequent year
onward. The details are as follows:
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7. Power and fuel and water charges are calculated as follows:
First year 1.80 lakhs
Second year 2.28 lakhs
Third year 2.75 lakhs, on 75 HP Motors and other small consumptions
including maintenance of office buildings.
8. Administration and Misc. expenses are estimated at Rs.9.80 lakhs in 1st year;
Rs.11.83 in 2nd year and increased by the basis of the future optimism
drawbacks.
9. Depreciation has been calculated at 10% of building and 15% on plant and
machinery as per present existing company’s act.
10. Commission on sales has been provided at 0.25Ps. per liter on sales.
11. Interest on loan has been calculated as 15% per annum.
12. I.T. Provision calculated at a present existing act rates on companies at 60%
on profit.
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DETAILS OF PLANT AND MACHINERY AND ITS COST WITH
TAXES:
1. Can Tipping bar 0.10
2. Inline strainer 0.20
3. Can drip saver, can scrubber 0.30
4. S.S. Horizontal milk storage tank 2.90
5. Milk pumps 0.25
6. Milk pasteurization plant 3.25
7. Cream separator 1.06
8. Hot water boiler 1.00
9. Air compressor 0.40
10. Automatic for fill seal machine-2 nos. 3.95
11. Ice plant 9.00
12. Can with chambers and lid 2.80
13. Milk pouch states 1.00
14. D.G. set 75 KVA 2.00
15. Quality control equipment like testing kit
Centrifuge, milk test. MRI tester, glass ware etc., 1.00
16. Power wiring (75 H.P.) with control panel 0.80
17. Pipe lines (S.S) with fittings and insulations 0.80
18. E.T.P agitators and pumps 0.40
19. Electron and commissioning 0.50
20. Homogenizer machinery 7.00
21. Weight Brown and pump tank 0.60
22. Weight scale (electronic) 0.65
23. Balance tank and can washer 2.00
24. Contingencies 42.61
PROCUREMENT OF MILK
For the purpose of raw milk, there is a separate “Procurement section”. In this
persons to the activities of the procurement of milk smoothly and effectively there are
about 35 persons working in the head office of the section has been lead by a manager
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who has to plan co-ordinate and control the procurement activity to augment with the
quality of milk.
METHODS OF PROCUREMENT OF MILK
Milk is received at Model Dairy through roots road tankers from chilling
centers. Vehicles used for direct route collection of milk are hired by the dairy
contract basis. This truck starts from the dairy early in the cases. A mode of
collection is similar to any collection under chilling centers. Whether it is Co-
operative society or not. The milk collected in the direct in the direct routes is carried
the dairy in canes. The trucks 8.05 a.m. to 10.05 P.M. time check note down the
arrival time of the trucks from the different routes. Model of payment is also similar
to any collection center or chilling center.
THROUGH ROAD TANKERS:
Milk from various chilling centers is receiving through road tankers presently
milk from 2 milk chilling centers is being received by road tankers besides the other
chilling centers, surplus milk from mofessil dairies is also being the flush season.
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TESTING OF RAW MILK OR PROCURED MILK
The raw milk reception dock of Model Dairy is capable of receiving milk from
cans and milk tankers. The milk, which received at the Dairy through cans, is tested
for
1. Organoleptic test
2. COB Test
3. Acidity Test
4. Sodium Test
5. Temperature
The milk, which is positive for COB Test, is not allowed for processing. From
that, sample is taken for test and determination of SNF, if there are more than one
from the same co-operative society or collection center is give a code number for
recording the weight. The weighting clerk records the weight against the code
number.
The milk, which brought by road tankers is tested organolspitically by quality
control supervisor then the milk plunge red from about 15 minutes, to ensure through
test is drawn. If they found negative to test, another sample passed into processing
section through a pipe fitted with.
The milk producers co-operative societies thus registered of the 3,51,124
societies are having is estimated at Rs.40 lakhs funds to the tune of 46 lakhs of rupees
are at deposit with the societies.
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PURCHASE OF RAW MATERIAL:
All the purchasers either material machines or stores are carried out by
purchase subsection. The duties of purchase section are as follows:
1. To purchase materials, equipment, suppliers as authorized under proper
recognized requisitions.
2. To obtain a material of uniform and standard quality.
3. To keep check the invoice on receipt with the purchase order and seen that the
quality set and price charged are properly.
4. To keep it well informed to the market rates, purchasing methods and normal
requirements of the company.
The purchase of the materials like stationary, paints, some spare parts required
are purchased from local market only other items like Ghee tins, chemicals firm
suitable firms are given due consideration. Glassware is first approved by C.D and
then only the order is placed.
For all purchases the purchase the department has to get the approval from the
appropriate authority. They are of the following nature.
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NORMAL APPROVAL:
At times when used immediately material can be purchased with factory
manager’s approval. This is later ratified by approval. For every two liters of milk
one kg of feed for production purchase of necessary after maintenance with balance
diet through the feed. The health of the animal the milking period of animals and this
quality of milk will increase.
APPROXIMATE INGREDIENT COMPOSITION OF
BALANCEDFEED:
1. Grain 12-51%
2. Cakes 12-15%
3. Buns 15-20%
4. Extracted beans 20-25%
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Organization Chart
Board of Director
Chairman
Managing Director
Deputy Director
Managers
Dairy Managers
Supervisors
Workers
Super skilled Skilled Semi Skilled Unskilled
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THEORETICAL FRAME WORK
CUSTOMER SATISFACTION
According to Peter Drucker, a company’s first tasks are “to create customers”.
Today’s customers face a vast array of product and brand choices prices and suppliers
making it difficult for them to make choice. It is believed that the customer estimated
which offer delivers the maximum value. Customers are value maximizes with in the
bounds of search costs value and act on it. Whether or not the offer lives up to the
value expectation affects both satisfaction and repurchases probability.
People often feel that the most important part of marketing is selling, bust
selling is only the tip of the marketing iceberg. Competition between the companies
is intensifying over the years. A company sees its competitors as other companies
offering a similar product and services to the same customer at similar prices. To
overcome competition, customer satisfaction is a deciding factor.
Many companies are aiming for higher satisfaction because customers, who
are just satisfied, find it easy to switch when better offer comes along. High
satisfaction creates an emotional bond with the brand, not just a rational preference.
The results is high customer loyalty.
But is fact marketing is only one factor in attracting and keeping customers.
The best marketing department in the world cannot sell products that are poorly made
or fail to meet anyone’s need. The marketing department can be effective only in
companies whose various departments and employees have designed and
implemented a competitively superior customer value delivery system.
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Customer and his Importance:
The essence of the marketing concept is that organization must adopt customer
– oriented features and focus their attention on building programs, offering and
strategies that satisfy customer needs or wants. Many organizations maintain their
focus on operation or product or sales efforts and there by get dislocated by mistaking
the means for the end. Successful perceptions of the people in how they view the
customer. Deep commitment to the customer is what distinguishes successful
marketers form laggards. The companies, which show extraordinary concern for the
customers never, forget that the customer’s attitude is the hall mark.
Hence Customer Are
‘People’ who are most important in any business.
Not dependent on business, business is dependent on them.
Doing us favour when they come in, we are not doing them a favour by
servicing them.
Apart of our business and not outsiders.
People come to us with their needs and wants. It is our job to fulfill them.
Deserving of the most courteous and attractive treatment we can give them.
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Customer Satisfaction
Whether the buyer is satisfied after purchase depends upon the offer’s
performance is relation to the buyer’s expectations. Customer satisfaction can thus be
said us.
“Satisfaction is a person’s feeling of pleasure or disappointment resulting from
the comparing a products perceived performance (or out come) in relation to his or
her expectations”.
This statement makes it clear that satisfaction is a function of perceived
performance and expectations. If the performance falls short of the expectation the
customers are dissatisfied. If the performance matches the expectations, the customer
is satisfied. If performance exceeds expectations, the customer is highly satisfied or
delegated. Although the customer – centered firm seeks to create high customer
satisfaction, its main foal is to maximize customer satisfaction.
First the company can increase customer satisfaction by lowering its prices or
increase its services, but the result may be lower profits.
Second the company might be able to increase its profits by means other than
satisfaction.
Third the company has many shareholders, including employees, dealers,
suppliers and stockholders. Spending more to increase customer satisfaction
might divert funds from increasing the satisfaction of the other partners.
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Customer Satisfaction Process
Brand loyalty and customer’s satisfaction on the other hand are almost
synonymous and their impact on market share is statistically verifiable. The
relationship between market share and shareholder value creation have been the
subject of considerable research over the years and linkages have been proven many
times.
The safe customers are those who are satisfied and not likely to move.
The habitual switchers are happy and still likely to switch.
The patient ones will stay on regardless but should not be taken for granted.
Their satisfaction can be improved profitably as they are inherently less likely
to switch.
The marketer is the most vulnerable with the lost category of people who are
not satisfied and also likely to move. This is a customer segment, which
sometimes results to efforts in diminishing returns to efforts to satisfy them.
However much you spend on them to keep back, by improving performance of
the product, you may still end up losing them any way.
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Today’s customers are global and have high degree of need for cognition,
recognition, approval and respect. So many companies believe that customer
satisfaction can make the company more profitable to some extent.
It is real experience and a rich insight is to customer’s mind to hit the bull’s
eye with carefully designed marketing strategies.
A highly effective technique is to keep a check on buying habits, intentions,
self-images, spending patterns, customers and manufacturing in agency.
Listening and caring for customer develops a sense of belonging in then and a
soft corner for the company itself.
Higher customer retention index, customer lifetime value, loyalty and
satisfaction level increase transaction with the same customer again and again.
A highly effective system of communication helps in developing positive
attitude in customer mind about the company its offerings.
Marketers believe that if they make service a surrogate for the product, track
and solve the customers problem and do fellow up the service they provide,
lifetime customers can be developed.
It is an effective tool to keep competitors away our customer’s sight.
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What marketing should do
Companies should establish a separate relationship market to prepare,
implementation and monitor their relationship marketing program.
Company should not rely totally on technical people but employ relationship
managers who well equipped with marketing, communication and
interpersonal skills.
An integrated marketing system is a per-requisite for building relationship
with customers. Companies should continuously search for value building
approaches through a system of quality management review process etc,
because by exceeding customer’s expectations, marketer can build a value-
laden relationship with customers.
As said before to satisfy a customer and to retain customer relationship
marketing is important. (Maintain relationship in the field of marketing)
II. RELATIONSHIP MARKETING : an Indian perspective
Relationship marketing has defined a new parading for itself. Sales
people today are not just meeting customer needs, they are anticipating
those needs and creating solutions for them.
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Relationship marketing: an Indian perspective
Modern marketing calls for more than developing a product, pricing it,
promoting it, and making it accessible to the target customers. It demands trust, a
building force and a value added relationship with the customer to win their hearts.
Relationship marketing
The changes in business environment have to customer specialization, quicker
decision-making and the possibility of collaborative with competition for lowering
distribution costs. In this background various questions are being raised.
What can he do in the futures?
How do they create value for customer?
The new age marketing aimed at winning customer forever, where companies
greet the customers, create products to omit their needs, work hard to develop life
time customers through the principles of customer delight, customer approval and
customer enthusiasm etc.
Marketers care acknowledge, appreciate and empower the customer in a
number of ways like sending thank you cards, special occasion cards, complementary
two-way communication club marketing and membership programs. Special discount
cards developed customers database a large storehouse of customer’s personal profile,
preferences, intentions, invitation on special occasion in the company and so-on.
Constant improvisation, shift from marketing myopia to marketing hypermetropia,
provision of additional services and utility both the tangible and intangible attributes-
binds a customer with brand related brands and the company itself.
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Why to get personal?
A number of actors contribute to getting personal, like increasing competitive
pressures, intense brand battle frequent new product introduction, active educated,
well informed and cautions customers, fickle brand loyalties, churning product line,