CHAPTER # 1 INTRODUCTION BACK GROUND After the world war 2 nd , industrial development accelerated ampliphicatedly in multidimensional all over the world especially in America and Western Europe. In the race of industrial tremendous development although industrial products based on modulated and sophisticated technology, received the bright concentration of the industrial nations, yet consumer products also caught the attraction of particular group of manufactures seeking profit orientation vide satisfaction. Agriculture being the vocation of the majority was considered the genuine industry to be technologies worldwide. So this recognized phenomenon amplified the agro-based industry astonishingly and unprecedented during the last three decades. As the market- oriented concept of business and trade holds the popular and attractive vase behind the process of manufacturing consumer goods, the progressive businessman to explore new fields, and niches resulting in consumer satisfaction do always efforts. This enchanting and fascinating process of exploration and Research was basic factor, which brought about the origin and
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C H A P T E R # 1
INTRODUCTION
BACK GROUND
After the world war 2nd, industrial development accelerated ampliphicatedly in
multidimensional all over the world especially in America and Western Europe. In
the race of industrial tremendous development although industrial products based
on modulated and sophisticated technology, received the bright concentration of
the industrial nations, yet consumer products also caught the attraction of particular
group of manufactures seeking profit orientation vide satisfaction.
Agriculture being the vocation of the majority was considered the genuine industry
to be technologies worldwide. So this recognized phenomenon amplified the agro-
based industry astonishingly and unprecedented during the last three decades. As
the market- oriented concept of business and trade holds the popular and attractive
vase behind the process of manufacturing consumer goods, the progressive
businessman to explore new fields, and niches resulting in consumer satisfaction
do always efforts. This enchanting and fascinating process of exploration and
Research was basic factor, which brought about the origin and innovation of milk
industry to meet some unsatisfied needs of milk- consumer.
It is an accepted fact the milk from the very origin of man’s life on the earth, has
been the most likely and captivating food its energetic qualities. In the early days,
milk could be easily managed and availed. But with the industrial growth,
population explosion, change in life style, above all over, increasing consumption
of the meats of milk generating cattle and their evacuation from cities caused the
problems of milk scarcity and unavailability at its unprecedented and gravity level,
especially, in the big crowded cities. To meet this milk scarcity problems, powder
milk was launched into market but it could not achieve the real target despite its
propagation and advertisement of its hygienic effects and still the need of fresh and
natural milk were felt among the consumer.
Realizing this very need and same other socio-psychological factors e.g. Its
purchase without any pot; tetra-pack mils was introduced and expectedly it
captured a reasonable market share not only at its starting period but it always on
the paths of increase and growth. Still there is bright prospectus for this product to
maximize its position in the growing markets of big cities. Currently there are two
main brands serving the market-associated with Tetra Brick, Aseptic Tetra pack.
Firstly, Nestle milk pack processed and aseptically packed by nestle milk pack
limited, 308 Upper Mall, Lahore. Under license of society dues products, Nestle
S.A very-Switzerland, trade marks owners. Second one is HALEEB & Dairy
Queen standardized Milk, processed and Aseptically packed by Chaudhry Foods
Ltd. 135 Feroze Pur Road, Lahore. There are many other brands.
Chapter # 2
PROCESS OF PACKED MILK
PROCESS OF PACKED MILK
Packed milk is a processed milk. We collect milk from the approved dairy farms
and process it keeping the highest standards. Many people doubt that packed milk
is made of chemicals or its proceeds synthetically but it is a quite misleading
conception.
MILK COLLECTION
The method adopted in collection of milk from dairies is, to only collect milk from
the approved suppliers who are running their cattle farms in accordance with the
prescribed standards. The temperature is maintained at 80C without adding ice. The
chiller containers are especially cleaned before milk is stored in them. This milk is
then transported to the factory.
FACTORY RECEPTION
As soon as milk reaches the factory reception the qualified chemists and
microbiologists for conducting a series of tests once again test it. This enables us to
mark the milk confirming it to be international standards.
PROCESS
The milk is then pasteurized at 780C killing 98% germs / bacteria. The milk after
pasteurization is then standardized as prescribed by the Pakistan Pure Food Laws
at 35% fats and 8.9% SNF (Solid Non-Fats). This process makes it a premium
quality product.
STANDARDIZATION
Standardization is a process in which the excess fats and SNF’s are removed from
the milk in order to achieve the standard of 3.5% Fat and 8.9% SNF as prescribed
by the Pakistan.
HOMOGENIZATION
Homogenization is a process in which all the cream in the milk is mixed. In this
process, milk is passed through 200 Bars of pressure, which in turn breaks each
cell to 0.5 microns, which is 200 times smaller than its actual size.
By applying this enormous pressure the entire cream mixes in the milk. This
process makes every drop of Haleeb milk highly nutritional, energy giving and
homogeneous to the other parts. That is why, on boiling Haleeb does not
accumulate cream on its top like ordinary milk.
UHT
By means of this process, the milk passes through 140 C in 3 seconds and then
cooled up immediately to 20 C with in the next 5 seconds, which in turn kills all
the bacteria.This is fate most sophisticated and advanced process being adopted
throughout the world. At dairies we use the indirect method of HUT and milk is
heated by steam passing through stainless steel pipes. All other brands in Pakistan
use the direct method of heating by injecting steam in the milk. These ads water
contents in milk, where – as indirect heating in fact evaporates water from the
milk. This is what makes Haleeb the “thickest milk”
SKIMS MILK
There are mainly two types of milk powders, full cream and skimmed. SKIMZ is a
skimmed milk powder. Full cream powder contains 28% fat, whereas SKIMS as
compared to full cream milk powder.
BENEFITS OF SKIMMED MILK
Researched all over the world have identified the following benefits of using low-
fat milk powder:
-Low cholesterol content helps prevent high blood pressure and various cardiac
disorders.
-Low fat content helps you stay smart.
-High calcium content prevents Osteoporosis (deterioration of bone mass)
especially in women after menopause.
-High protein content helps strengthen and builds muscles.
-Low fat milk can reduce the risk of intestinal cancer.
-Low fat milk helps in reducing the Alzheimer’s disease.
HOW IS SKIMS PRODUCED?
Milk is collected from the best available sources. It is pasteurized to kill all
pathogenic bacteria. All fat is removed from the milk and water is evaporated from
it under vacuum.It is then spray dried. Spray drying increases the quality of
solubility of milk powder, making it more “ instant”. The product is then packed in
aluminum foil to protect it from bacteria, heat and light, and to preserve its
freshness and flavor.
Chapter # 3
MARKETING OF MILK
NESTLE MILK LTD .
INTRODUCTION OF THE COMPANY
Nestle Milk Pak Ltd. Was established in 1981. As a result of the joint venture
between Nestle-S.A and Milk pack Limited. Besides the investment, this joint
venture has helped Nestle Milkpak Ltd to acquire the equipment, transfer of latest
food technology .It has also invested vast resources in people and developed a
well-trained industries work force.
Pakistan, at present, has a very narrow and segmented food industry.
There for it has tremendous untapped potential, that can be maximized by
developing new food concepts. Nestle Milkpak Ltd. has aimed to do just that, and
much of its activities are focused on introducing new food products to the
customer, rather than concentrating on gaining market share in existing categories.
MILK RELATED PRODUCT LINE OF NESTLE MILKPAK
Nido
Milkpak
Chocolates
Lactogen
Nes Cafe Select
N E S L A C
NESCAFE CLASSICNess Café 3 in 1Nescafe FrotheEvery day Tea WhitenerCereal WheatCerlac FruitCerlac HoneyCerlac BananaCerlac RiceMiloDesi GheeCreamButter
Butter Skotch
CHAUDHRY FOODS LTD.
INTRODUCTION OF THE COMPANY
Chauhdry Foods Ltd. was established in1984 and started its production in 1987. It
was setup with the financial aid of PICIC
(Pakistan industrial Credit & investment Corporation) and ADBP (Agriculture
Development Bank of Pakistan). The company purchased the plant form Holland
and installed it near Bhai Phero. The Head office of the company is situated at
Ferozepur road Lahore. Over all management of Choudhry Foods ( Pvt.) Ltd. is
run by a Board of Directors. One of the directors is chosen as the chairman of
Board of Directors. At the main office management is totally under the
administration and supervision of the chief executive. Chaudhray Food Limited is
the only food company in Pakistan, which is certified by ISO, and has ISO 9002
certificate for Haleeb.
The company has several departments as;Marketing department.Finance department.Production departmentQuality increase departmentRepair departmentEngineering department
MILK RELATED PRODUCT LINE OF CHAUDHRY DAIRIES LTD .
Haleeb milk
Nova Milk ( Low fats milk)
Skimming milk powder
Skims yogurt
Candia Skims
Dairy Queen
Chapter # 04
CHANNEL OF DISTRIBUTION
In the business world, consumer is the most important figure. Health of well being
the consumer sets the future prosperity and performance of business. If the good
are properly channeled and sold to consumer the activity of the production begins
to cease.
Mainly the question lies who our customer is and where they are located? What
they want? And what price they are willing to pay for our product?
The question is how to reach them? This task involves the establishment of
strategy covering channels of distributions and physical distribution of the product.
AVAILABLE CHANNELS FOR TETRA PACK MILK
LONG CHAIN
Manufacturer
Distributor
Retailers
Ultimate Consumer
MEDIUM CHAIN
Manufacturer
Retailers
Consumers
Chapter # 05
THEORETICAL FRAMEWORK AND METHODOLOGY
PROBLEM STATEMENT
To what extent, people are responding towering towards the packed milk? The
superiority of packed milk is in the areas of hygiene, convenience, taste,
nourishment and affordable price. Price of packed milk is though higher, but it is
economical in the sense that it’s quantity required to make a certain number of tea
cups is half of that of fresh milk.
We have observed that in spite of these facts, most of the families prefer fresh
milk.Why is this so? Problem is to be defined and investigation is to be carried out
that whether fresh milk is really preferred over packed milk or not and what could
be the possible reasons for it.
HYPOTHESIS :
Ho = Fresh milk is preferred over packed milk.
Hi = Packed milk is preferred over fresh milk.
THEORETICAL FRAMEWORK
The theoretical framework developed is as follow:
People prefer fresh milk, because of its easy availability, low price, free from
germs and good taste.
Based on the observations, the most important variables in comparison of fresh and
packed milk are quality, price, hygiene, taste and nourishment the variable of
primary interest or the dependent variable is “ preference for the type of milk”. The
independent variables influencing are below:
Quality
Price
Hygiene
Taste
Nourishment
Income
The most influencing factor is the income of families. Most of families may
strongly believe that the independent variables are in favor of a certain kind of
milk, but they will surely prefer the one they can afford.
OBJECTIVES OF THE RESEARCH
The objective of the research is:
To find out whether as to the consumers prefer fresh milk over packed milk or not
and find out the possible causes for it.
To find out whether as to the advertisement affects the preference of people
regarding the packed milk or not.
RESEARCH METHODOLOGY
Tools of research use for the data collection will be personal interviewing and
questionnaire and secondary data as well.
QUESTION DESIGN
We question consists of the following items
In question design process, we have considered the factors given hereunder:
1) Relevancy and accuracy of the question was considered as the first important
objective.
However, We have also tried my best that the wording of the question should be
simple and easily understandable
2) Our questionnaire required two types of information;
First, consumer behavior about the packed milk.
3) These questions were about knowledge of the residence and their monthly
income. After deciding what should be asked, We focused our attention on the
following points:
-Question contents should be relevant and accurate.
-Question wording should be easy.
-Question sequence should be logical.
-Question should be pure of complexity and ambiguity.
-Open – ended question were asked.
-Personal question and question that are more interesting an easier to consumer.
SAMPLING TECHNIQUES OF THE RESEARCH
What do we mean by sampling is the use of simple random technique of
sampling. While selecting a book, We read some pages or lines or related topic of
the research and selected the Sampling Techniques.
SAMPLING
The process of using a small number of items or parts of the whole population to
make conclusions about the whole population.
SAMPLES
A sample is a subset or some part of a large population.
In research 250 respondents were selected by me to represent the sample.
POPULATION
A complete group of entities shares some common set of characteristics. The
population of our research was the total population of Multan City.
SAMPLING UNIT
A single element or group of element subject to the selection in the sample in case
of this research-sampling unit was selected respondents.
SAMPLING TECHNIQUES APPLIED
We select non probability sampling techniques, under which We applied quota
sampling and probability sampling by means of which We applied systematic
sampling.
QUOTA SAMPLING
A non-probability sampling procedure that insures certain characteristics of a
population sample represent the exact extent that the investigator desires.
SYSTEMATIC SAMPLING
A sampling procedure in which an initial starting point is selected by a random
process and then every number on the list is selected.
SAMPLING INTERVAL
Sampling interval is the number of population elements amongst the units selected
for the sample. So, in order to represent the consumer behavior of all income
classes, We have selected six areas of Multan City. The selected areas were equal
representation i.e. from each of selected areas, We have chosen the same number
of respondents to be included in my sample.
The areas, which were selected by us for the purpose of the study, are under.
Gulgasht 50
New Multan 50
Mumtazabad 50
Nishter Road / Chungi No.1 50
Cantt: 50Total:- 250
We interviewed the people at their home. We selected those people who were
willing to answer the question. We filled in the questionnaire and some
questionnaires were distributed to the people and were collected after two or three
days. We assured the respondents that their response would be kept
confidential. As no previous research done by us, so in experience become a
problem to get the response from the people.But after some time, We gained
confidence in making queries.
SAMPLE SIZE SELECTION
The selection of sample size proves to be the most difficult job while you are going
to get the information from the people. We have taken sample size of 250. The
reason behind this selection is that in such type of informal studies that is enough
number of samples to get the conclusion.
C H A P T E R # 0 6
ANALYSIS & RESULTSQ.No.1. What type of milk do you use?
Answer – Analysis
Category Frequency Frequency in %
Packed 10 4%
Fresh 209 83.6%
Both 31 12.4%
250 100%
T O T A L
Interpretation:
The purpose of asking question was just to know the type of milk, being used by
the people. About 83.6 % respondents replied that they use fresh milk, 12.4%
respondents answered that they use both (fresh, packed) and 4 % respondents
replied that they use packed milk. So, we can conclude that majority of people use
fresh milk.
Fresh Milk:
Q. No. 2. What are the basis of your preference?
A N S W E R – A N A L Y S I SPreference Frequency of Respondents Frequency in %
The purpose of asking this question was to know that for which purpose the fresh
milk is used.shows that 72.5% respondents replied the use of fresh milk for drinking. 25 % replied for tea and only 2.5 % reply for yogurt.Packed Milk:
Q. No. 7 Are the prices lof packed Milk affordable?
A N S W E R – A N A L Y S I SCategory Frequency of Respondents Frequency in %
Yes 19 46%No 22 54 %Total:. 41 100%
Interpretation:
The purpose of asking this question was to know that whether the prices of packed
milk are affordable. 54 % respondents replied that the prices of packed milk are not
affordable. The fresh milk does not fulfill our needs. Hence, we purchase the
packed milk. 46 % respondents replied that the prices of packed milk are
affordable.
Q.No. 8 what do you think about the availability of packed milk?A N S W E R – A N A L Y S I S
Category Frequency of Respondents Frequency in %Near the Residence 35 85%Away the Residence 6 15%Total:. 41 100%
Interpretation:
This question was asked
to know whether packed
milk is easily available,
near the residence or
away from the
residence. 85 % respondents replied that the packed milk is available near the
residence. Only 15 % respondents replied away from the residence.
Q. No. 9 what are the basis of your preference?
A N S W E R – A N A L Y S I SPreference Frequency of Respondents Frequency in %
The purpose of asking this question was to know that what type of milk is better
for tea. 84 % respondents replied in favor of fresh milk for tea. 16 % respondents
replied that the packed milk is better for tea.
So, the majority of people like fresh milk for tea as compared to the packed milk.
P E R S O N A L Q U E S T I O N SQ. No. 17 You education please?
A N S W E R – A N A L Y S I SCategory Frequency of Respondents Frequency in %Primary 25 10%Middle 18 72%Matriculate 90 36%F.A 15 6%Graduation 60 24%Doctor/ Lawyer 22 8.8%Master 20 8 %Total 250 100.00
Interpretation:
This question was designed to know that our respondents are how much educated.
36 % respondents replied that they are Matriculates. 24% respondents replied that
they are Graduates. 6% respondents replied that they had complete their education
up to F.A 8.8 people responded that they are professional like Doctor/ Lawyer
whereas 8% and 7.2% the qualification of other were Primary, Master and Middle
respectively.
So, “ Matriculation” and “Graduation” are greater in number than other.
Q.No. 18 How many family members do you have?
A N S W E R – A N A L Y S I SCategory Frequency of Respondents Frequency in %1 to 2 31 12.4%3 to 4 48 19.2%5 to 6 68 27.2%7 to 8 38 15.2%9 to10 25 10%11 to 12 30 12%131 to 14 10 4%Total:- 250 100.00
Interpretation:
The purpose of asking lthis question was to know the knowledge of family
members of the respondents. The response reveals that the respondents have
minimum two family members and maximum fourteen family members. 27.2%
people reply that they have 5-6 members of their family. 19.2 %, 12%, 15.2%,
10%, 12.4%, 12.4% and 4%, respondents replied that their family comprise 3-
4, 11-12,7-8, 9-10, 1-2 and 13-14 respectively.
So, most of family have 5-6 member as compared to others.
Q . N O . 1 9 Y O U R F A M I L Y I N C O M E P L E A S E ?
A N S W E R – A N A L Y S I SCategory Frequency of Respondents Frequency in %
0001 to 5000 27 10.8%5001 to 10000 48 56.4%10001 to 15000 68 18%15001 to 20000 38 102%20001 to 25000 25 2.8%Total 250 100.00
Interpretation:
The purpose of asking this question was to know that income level of the family of
respondents. 58 % people replied that their income falls Rs. 5001-10000 per
month. 10.8 %, 18% and 2.8% respondents replied that their income is between Rs.
0001-5000,10001-15000,15001-20000 and 2001-25000 per month respectively.
So, majority of the family’s income lies in Rs. 5001-10000.
CONCLUSIONFrom the research conducted, it has been observed that.
1. There is no signification relation between the use of packed milk and fresh milk.
2. About 83.6% people use only fresh milk l whereas only 4% people use packed
milk.The rest of people use both packed and fresh milk. Therefore, the
hypothesis stated earlier, i.e.’ fresh milk is preferred over packed milk, is
accepted on the basis of results.
3. Also, the relationship of education with use of packed milk is not very strong. Its
difficult to determine how educated a family is? Moreover, the method used by
us to calculate the educational score is quite tricky, and it is difficult to fix
parameter of educated family.
4. All families are aware of the advertisement of packed milk. About 56% families,
who don’t use packed milk at all, have awareness of advertisements of packed
milk.
5. The influence on purchasing decision of the people after watching the
advertisement is not much.
6. Usage pattern of the people does not seem to affect the purchasing decision in case of packed
milk. The following table summarizes the usage rate for people who use fresh milk alone,
and people who use packed milk along with fresh milk.
U S A G E People using fresh milk alone People using packed milk along with fresh milk