Girish final report

BELGAUM MILK UNION LTD.

EXECUTIVE SUMMARY

Page 1 KLS's Institute of Management Education and Research, Belgaum


EXECUTIVE SUMMARY

In this project my aim was to understand the concept of the milk diary and this study

focused on the consumer preference towards Nandini milk & its Products in Belgaum city.

For this study 100 consumers of Belgaum city were randomly chosen and their

response has been collected through a systematic questionnaire. Again the responses

collected are tabulated are analyzed to take up the decision and recommendations which will

be helpful for the BEMUL, to improve service to its consumers.

While carrying the survey many respondents have show negligence when they where

answering, and few were very much excited answered the questions with their personal

interest. Some of them reacted and started communicating their complaints and requirements.

This study is conducted for consumers, in Belgaum city. It gives more emphasis on

the selected consumers for gathering the information about consumer preference towards

Nandini Milk and its products.

The research aims to collect the information about the consumer preference.

Findings inferred from the data enable and subsequent recommendation will help KMF to

improve its marketing effectiveness



INDUSTRY PROFILE

DAIRY INDUSTRY IN INDIA

Dairy enterprise is an important occupation of farmer. In India nearly 70% of the

people depend on agriculture. It is the backbone of India. Dairy is linked with agriculture

industry to a large extent.

Animal husbandry in India is an essential part. It is mainly a rural occupation closely

associated with agriculture.

DEVELOMENT OF DAIRY INDUSTRY IN INDIA

During the Pre-independence year there was no serious stress given to dairy industry.

In 1886 the Department of Defense of the British Government established the dairy farms for

the supply of milk to the British troops in Alahabad. Later, in 1920 serious steps were taken

by Mr. William Smith, an expert in dairy forming to improve the milk production There was

discrimination done to the Indians hence this led to the rise of the first milk union in India. In

Lucknow 1937 called the Lucknow milk producer’s Co-operative union Ltd.

In 1946 AMUL (Anand Milk Udyog Ltd) was started in Gujarat to bring up the

economic stability of villagers.

When the farmer Prime Minister Lal Bahaddur Shastri visited the functioning as it

was rendering a social service to the society, which helped the villagers to come in the

national economic stream.

The dairy and Animal Husbandry received serious attention after the independence.

There was not many of progressive steps taken by the government through five year plans.

This led to the formation of National Dairy Development Board in 1965

& thus in 1970 he decided to bring a “White Revolution” throughout the country, Initially 10

states were selected for this purpose excluding Karnataka.

In Karnataka in 1974 an integrated project was launched to restructure and reorganize

the dairy industry on Co-operative principle of AMUL and to lay foundation for new

direction in dairy industry.



NATIONAL DARIY DEVELOMENT BOARD

History:

NDDB was founded to replace exploitation with empowerment, tradition with

Modernity, Stagnation with growth, transforming dairy into and instrument for the

development of Indian’s rural people.

NDDB was established in 1965; the board is registered under the Societies

Registration Act and the public Trust Act, fulfilling the desire of the Prime Minister of India

– the late Lal Bhahaddur Shastri to extend the success of the Kaira Co-operative Milk

producers union (AMUL) TO OTHER PARTS OF India. Dr Vergese Kurien was the

founder chairman. The success combined the wisdom & energy of farmers with professional

management to successful capture liquid milk and milk product markets while supporting

farmer’s investment with inputs and services.

The Growth

NDDB began its operations with the mission of making dairying a vehicle to a better

future for millions of gross roots milk producers. The mission archived helped to launch

‘’Operation Flood’’, a program extending over 26 years and with the help of World Bank

Loan India become the world’s largest milk producing country. As per March 2001 India’s

96000 Dairy Co-operative are integrated thorough a three Tier Co-operative structure.

The Anand pattern which is owned by more than 10 million farmers procures an

average of 1605 million liters of milk every day. The milk is processed and marketed by 170

milk producers’ co-operative unions which, in turn own 15 state co-operative milk marketing

federation. Since its establishment the dairy development board has planned

and spearheaded India’s Dairy programme by placing dairy development in the hands of milk

producers and the professionals, they employ to manage their co-operatives.

In addition, NDDB also promotes other commodity based co-operative, allied

industries and veterinary biologically on an intensive and nationwide basis.



Objectives of NDDB

To sponsor, promote, manage, acquire, construct or control any plant or work,

which promote projects of general public utility relation to dairying.

To make information available on request to technical services to increase

production of Milk.

To prepare initial feasibility studies of dairying and other dairy related projects

and undertake subsequent designing planning and start up those projects.

To undertake research and development programme related to production and

marketing of milk and milk products.

To provide assistance for exchange of information to other international agencies.

Services rendered by NDDB

Planning dairy and rural development projects.

Organization of farmer co-operative societies.

Setting up of dairy and cattle feed plants.

Manpower planning and training.

Applied research and development.

Implementation of milk production enhancement programme.



INTRODUCTION TO KARNATAKA MILK FEDERATION


KARNATAKA MILKFEDERATION

DISTRICT CO-OPERATIVEMILK UNION

VILLAGE LEVEL MILK CO-OPERATIVE SOCIETY

MILK PRODUCERS(MEMBERS)


The first dairy in Karnataka was started in Kudige in Kodagu district in 1955, Further

in June 1974; an integrated project was launched in Karnataka to restructure and reorganize

the dairy industry on the co-operative principle and to lay foundation for a new direction in

dairy development.

In 1975, the World Bank aided dairy development was initiated. The present

Karnataka Milk Federation (KMF) came into existence in 1984-as a result of merging of

Karnataka Dairy Development Co-operation, small co-operatives and Karnataka Milk

Production Development and loose vendors.

At the end of the March 1998, the network of 8023 Diary Co-operative Societies

(DCS) have been established which are spread over 166 taluks of the total 175 taluks in all 27

districts of Karnataka. There are 13 Milk Unions and BEMUL is one among them. There are

35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants and 2 Product dairies for chilling,

processing, conservation and marketing of milk. To supply cattle feed there are 4 cattle feed

plants.

To ensure supply of quality germ plasma, Bull breeding farm and frozen semen bank

are also available.

Karnataka co-operative Milk Producers’ Federation Limited (KMF) is the apex Body in

Karnataka representing Dairy Cooperatives. It is the third largest dairy co-operative amongst

the dairy co-operatives in the country.

To impart training, institutes at Bangalore and regional training institutes at Dharwad

and Gulbarga are functioning. Three nitrogen plants are been set-up to supply nitrogen, which

is used for Refrigeration purpose. Three diagnostic centers have been set-up for monitoring

diseases: three fodder farms at Rajkunte, Kuttanahalli and Kodagu

have been set-up to supply good quality of fodder and seed production farm at Shahpur has

been set-up.



The federation giving details of the latest technology in dairy industry etc is published

in ‘’Ksheer Sagar’’ magazine monthly.

KMF is a co-operative apex body in the state of Karnataka for representing dairy

organizations and also implementing dairy development activities to achieve the following

objectives.

Providing assured and remunerative market for all the milk produced by the

farmer members.

Providing hygienic milk to urban consumers.

To build village level institutions in co-operative sector to manage the dairy

activities.

To ensure provision of milk production inputs, processing facilities.

To facilitate rural development by providing opportunities for self-employment at

village level, preventing migration to urban areas, etc.

The growth process

The growth over the years and activities undertaken by KMF is summarized briefly

here under:

Particulars 1976-77 2004-05

Dairy Co-operatives (No’s) 416 9670

Membership (No’s) 37000 1743664

Milk Procurement

(Kgs/day)

50000 12699785

Milk Sales (Lts/day) 35050 1694116



FUNCTIONS OF KMF

Co-ordination of activities between the unions.

Developing the markets for the increasing in milk production.

To make the brand ‘’Nandini’’ as a house hold name.

Excellence in quality is to be maintained to lay a solid foundation for wide spread

acceptance of ‘’Nandini’’ products.

To increase the market share of ‘’Nandini’’.

THE THREE- TIER STRUCTURE


MILK UNION MILK UNIONMILK UNION

DISTRICTCO-OPERATIVE

SOCIETY

DISTRICT CO-OPERATIVE

SOCIETY

DISTRICT CO-OPERATIVE

SOCIETY

KARNATAKA MILK FEDERATION


THE DISTRICT CO-OPERATIVE SOCIETY (DCS)

It is basic organization unit, functioning at the village level, by training local people to

organize and manage the activities, village level institution building and development of local

leadership is promoted.

FUNCTIONS

It functions daily and acts as a marketing outset for the milk produced in the

village.

Input facilities are also canalized to the dairy farmers through these societies and

include Veterinary First Aid, Sale of Cattle Feed, Supply of Fodder Seeds,

Seedling and Provisions of Mobile Veterinary Health Care etc.

Payment for the milk is done through society.

THE MILK UNION

Milk union is a channel of District Co-Operative Societies in organized form for milk

procurement. The procurement route is linked to chilling center or a dairy. Belgaum Milk

Union is one of such Milk Unions. It is the middle tier of the complex co-operative

organization network. Unions are formed by federating the societies in locating geographical

area. The milk unions are organized to make them economically viable and the jurisdiction

extends from one district to 3 Districts. There are 5 Milk Unions who’s Jurisdiction covers a

single district, 4 Unions COVER 2 District, each 3 Unions cover 3 districts and one Union’s

territory extends to 4 District. All Unions have their own Milk Processing Facilities.



FUNCTIONS

These Unions help to organize new Primary Dairy Co-operative Societies. The Union

also helps in managing these DCS by assisting in accounts, purchase, process and marketing

milk. The Union helps in providing all the input facilities to DCS and channelizes the dairy

farmers through DCS. The Union provides the following facilities.

Providing Balanced Cattle Feed.

Providing Animal Health Care.

Providing Artificial Insemination facility for breed improvement.

Providing Training for breeding, feeding management.

MILK FEDERATION

The main objective of the federation is to help in formation of Milk Unions through

the state. The Federation implements all the project activities. After the project activities are

accomplished the federation aims at formulating Marketing strategies in marketing the Milk

and Milk Product. The Karnataka Milk Federation which was setup in 1984 has the following

functions:

The foremost function of KMF was to co-ordinate the activities between the Union

and also in making market available so that production increases.

The Federation also manages surplus and deficiencies of milk among the milk union

and help in disposing milk and milk product at reasonable price

The Federation also manages to market the milk and milk products outside the state.

Training and developing senior managerial personnel, acquiring and applying all

recent technologies, prescribing quality guidelines and norms.



THE PRODUCTS OF KMF

Milk Toned Milk, Full Cream Milk, Standardized Milk,

Flavored Milk, Smart, Slim Butter Milk,

Homogenized Toned Milk,

Milk Products Ghee, Badam Powder, Butter,

Panner, Curd, Peda, Cheese and

Khawa Kundha.





COMPANY PROFILE

KEY ELEMENTS OF BEMUL:

Name of the Company Belgaum District Co-operative Milk Producers

Societies Union Ltd. Belgaum.

Address of the Company Belgaum Dist. Co-operative Milk Producers

Societies Union Ltd. Belgaum Dairy premises

Kanbargi Road. Belgaum- 590016.

Tel Ph No:- 0831- 2455036, 2454107,

2453442.

Registration No JRL/9072/DAY/1985-86.

Date:- 24th December 1985.

Type of unit Small Scale.

Organization set up Land-22acres

Labors Permanent: - 128

Contract :- 78

206



Belgaum District Cooperative Milk Producers

Societies Union Limited, Belgaum – 590 016.



INTRODUCTION OF BEMUL

Government Dairy, Belgaum, was established in the year 1971 with milk handling

capacity of 10,000 LPD under Govt. Milk Scheme. The BEMUL is union member of KMF

and registered on 24thDec 1985. It is a co-operative organization. The integrated, dairy

development activated in Karnataka started on sound footing with Govt. of Karnataka

initiating dairy development project in 1974 with the World Bank Assistance. The AMUL

Model Co-Operative System was followed for Dairy Development activities in Karnataka.

Initially Dairy Development was started in 8 districts of Southern Karnataka. Later in 1983

Integrated Dairy Development activities were started in Northern Districts of Karnataka from

Oct 1984 under Operation Flood-II project of National Dairy Development Board which gave

impetus for further development in Dairying. Belgaum Milk Union started functioning with

effect from December 1985.

Belgaum district is North Western border district of Karnataka, 512 km

away from Bangalore and it is on the border of Maharashtra and Goa States. The district is

formerly known as land of sugar later turned into land of sugar and milk. New dairy plant

was established in the year 1995 with milk handling capacity of 60,000 LPD expandable to

1,00,000 LPD to serve consumers with pasteurized milk and products such as Ghee, Peda,

Curd, Sweet milk, Masala Butter Milk and Belgaum special sweet “Nandini Kunda”. There

are 314 primary dairy co-operative societies functioning which are affiliated to the union. In

all around 15,280 milk producers families supplying milk to the union through Primary Milk

Producers Co-Op Societies. Around 64,867 families are depending on Dairy activities for

their livelihood of whom many are land less laborers and belongs to weaker section. The

major objectives of the union shall be to carry out activities conducive to the economic and

socio-economic development of the milk producers by organizing effective promotion,

processing and marketing of commodities.



PRINCIPLES OF THE BEMUL:

Honesty

Discipline and Time Management

Quality at all stages

Mutual Co-Operation and Respect

Transparency

Hard Work and Sincerity

OBJECTIVES OF THE BEMUL:-

The main objective of BEMUL is to develop the members by procuring good

quality milk.

To provide high quality milk to the continuous changing market and to increase

the position of Union in introducing milk and milk products.

Honestly striving to become one of the best dairy in Karnataka State.

To build village level institution in co-operative sector to manage daily activities.

Providing hygienic milk to urban consumer.

MEMEBERS OF WORKING BOARD

ELECTEDED MEMBERS 11

NOMINATED MEMBERS 03

PROCUCT PROFILE



KMF - milk and Milk Products.

Toned Milk: Karnataka’s most favorite milk. Nadine

Toned Fresh and pure milk containing 3.0% FAT and 8.5%

SNF, Available in 500ml and 1ltr packs.

Standard Milk:

Buffalo’s milk, 100% pure pasteurized processed and

packed hygienically, this milk has 5% FAT and 9% SNF.

Available in 500ml and 1ltr, and also Available in 5 ltr

packs for marriages, and other functions.

Full Cream Milk:

Full cream milk, containing 6% FAT and 9% SNF. Rich,

creamier tastier milk, ideal for preparing home-made sweet.

Available in 500ml and 1ltrs packs.

Homogenized toned milk:

Nandini homogenized milk is pure milk. Which is

homogenized and pasteurized, consistent right through, it

gives you more cups of tea or coffee and is easily digestible.

Available in 500ml packs.

Curd:

Nandini curd made from pure milk, its thick delicious

Giving you all the goodness of homemade curds. Available

in 200gms and 500gms sachet.



Milk powder:

Enjoy the taste of pure milk! Skimmed milk powder made

form pure milk, processed and packed hygienically.

Available in 100gms, 200mgs, 500gms, 1kg & 25kg Pack.

Butter:

Rich, smooth and delicious. Nandini butter is made out of

fresh pasteurized cream, rich taste, smooth texture and the

rich purity of cow’s milk makes any preparation a delicious

treat. Available in 100gms(salted), 200gms and 500gms

cartons both salted and unsalted

Peda :

No matter what you ate celebrating! Made from pure milk,

Nandini peda is a delicious treat for the family. It will be

store at room temperature approximately 7days. Available

in 250gms pack containing 10pieces each.

Ghee:A state of purity, Nandini ghee made from pure

butter. It is fresh and pure with a delicious flavor,

hygienically manufactured and packed in a special pack to

retain the goodness of pure ghee. Shelf life of 6 months at

ambient temperature. Available in 200ml, 500ml, 1000ml

sachets, 51trs tins and 15kegs tins.



DEPARTMENTS OF BEMUL:-

In BEMUL, there are various sections or Departments which

constitutes the operation of union. The various departments are:

Procurement and Input

Production or Plant Department

Engineering Department

Marketing Department

Administrative Department

Finance or Accounts Department

Stores and Purchase Department

MIS

Security Section.



PROCUREMENT AND INPUT DEPARTMENT:- (P&I)

P&I is an important Dept in the Organization. It deals with procurement of milk the

procurement of milk and takes it as input for final production.

Now a days due to increase in the population, the demands for milk and milk products

has been increasing. So to meet this demand of market only procurement of milk through

societies is not sufficient. So the Union has adopted various other sources of procurement

life:

Milk procured from societies 90%.

Milk procured from other dairy 10%.

PROCUREMENT PROCESS:-

The farmers milk the cattle and take the milk to DCS i.e. Dairy Co-Operative

Societies and then the milk is tested for FAT for both cow and buffalo.

The milk collected at DCS centers are picked up by milk vans and taken to the main dairy.

Then it is weighted there and FAT & SNF are again tested and then send for pasteurization.

The money paid by main dairy to the societies based on the FAT and SNF content of milk.

Calculation of SNF:-

SNF (Solid Not Fat) = CLR /4 + 0.25 * FAT + 0.35.

THE TABLE SHOWING TOTAL PROCUREMENT PER DAY:-


FARMERS

DCS

BEMUL


YEAR TOTAL

PROCUREMENT(in liter)

2001-02 44,954

2002-03 47305

2003-04 46,968

2004-05 53,154

2005-06 56,838

2006-07 52,994

2007-08 56,361

For more milk procurement and milk production, balanced cattle feed is essential.

For that reason BEMUL is supplying balanced food i.e. Cattle feed and mineral mixture at

reasonable prices in the village itself at their DCS. The price of the Mineral Mixture is Rs

30/- for 1kg.

Mineral Mixture Powder:-

Composition Percentage (%)

Calcium 19.80

Phosphorous 9.00

Zink 1.62

Copper 0.25



Functions of Procurement and Input:-

Opening of new dairy Co-Operative Societies.

To procure good milk at dairy Co-Operative Societies.

To check the records maintained at dairy Societies.

To attend complaints.

To organize meetings at the dairy Co-Operative Society level.

PRODUCTION DEPARTMENT:-

Production is the conversion of raw material into finished products. In other words it

is the conversion of input into output. At BEMUL, production department is well planned and

adequately equipped manufacturing set up where all the necessary infrastructure is available.

Production Procedure:- The different stages of production are as follows:

Collection of Milk:-

In the first stage, the milk is brought from the various DCS to the main dairy

in a can containing 40 liters capacity in the vehicles. The cans are marked with two

different colours to differentiate between the Cow and Buffalo milk. .The Red colour is

used for Buffalo milk, and Green or Blue colour is used for Cow milk. Once the milk is

brought to the main dairy, it undergoes into following processes:

Organoleptic Test

Smelling and Tasting Test

Extraneous Matter

COB i.e. Clot on Boiling.

Storage of Chilled Milk:-



Once all the tests are over, the milk is allowed to store in the Store Tank. It

contains cold level of 4 degree Celsius. The Union is having 7 storage tanks , 3 tanks are

vertical with 30,000 liters capacity each and the remaining 4 are horizontal among which

are having the capacity of 10,000 liters each and other 2 of 15,000 liters capacity each.

After chilling the milk, it is passed for pasteurization.

PASTEURIZATION:-

This step includes heating every particle of milk at 72 degree Celsius in 15

Seconds and is cooled in less than 4 degree Celsius.

PACKING:-

Once the pasteurization stage is conducted the next step is to pack the

milk. Packing is done by machines in case of fluid goods where as it is done manually in

case of solid goods like Peda.

STORAGE:- In the Storage, the milk is packed in 500ml and 1000ml pouches then

they are arranged in the caters. Each cater contains 10 liters of milk. These are stored in

the cold room which has a temperature of 4 degree Celsius or below.



Flow Chart of Production Department:


CHILLING OF RAW MILK

STORAGE OF CHILLED MILK

PASTEURIZATION

COLLECTION OF MILK (COW AND BUFFALO)

STANDARDIZATION

PACKING

STORAGE

DISPATCH


PRODUCTION DEPARTMENT CHART:-


Deputy Manager

Assistant Manager

Technical Officer

Dairy Supervisor

Manager Dairy

Production

Operation

Helpers

Quality Control

Chemist

Helpers


ENGINEERING DEPARTMENT:-

Engineering dept is the heart of dairy production and other unit. Its major

contribution is towards the production unit. Engineering dept at BEMUL consists of 20

workers based on shifts.

DEPARTMENTS OF ENGINEERING:-

Electricity Department

Boiler Section

Air Compressor and Work shop

Refrigeration

Processing Plant

ETP (Efflon Treatment Plant)

FUNCTIONS OF ENGINEERING DEPT-

To supply hot water to production dept and wash cans and utensils.

To supply cold by ammonia treatment so as to maintain the 4 degree Celsius

temperature of milk.

Maintenance and repairs of motors.

To supply electricity through D.G (Diesel Generator) sets in case of power failure.



MARKETING DEPARTMENT:-

“Marketing is the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to create exchanges that satisfy

individual and organizational goals.”

Marketing Section in BEMUL is divided into three different internal sections: viz

Office Work

Marketing and Production Co-Ordination

Field Work

Office Work:- The Office work deals with all daily transactions. They include

checking the daily indents, collecting the cash from salesman and depositing the same

into the bank. Delegating the work to all assistants and helpers. They also arrange

vehicles for distribution of milk on contract basis.

Marketing and Production Co-Ordination:- Marketing and Production are not

two different aspects. They are two faces of same coin. The indents collected by the

agents which helps in production and packing of the products. They prepare chart of

requirement for the next day and sent to the production department which helps in

taking decisions for the production.

Field Work:- The Marketing Officers will go to the fields to study the market and

then they will plan for the strategy. They will plan about Marketing Mix i.e. Product,

Price, Promotion and Place or Distribution. There are around 15 sales persons in the

field work.



DISTRIBUTION PROCESS:-

Sales Promotion

Sales promotion consists of short-term incentives to encourage purchase or sales of

products or service.

Promotion tools used by BEMUL

* Through the agent.

* Home delivery.

* Cycle to agent.

* T-shirts.

* Home delivery Bags.

* Plan for lucky draw.

* Samples.

The budget is allocated by the KMF & NDDB (National Dairy Development Board) 3

to 4 Lakhs per year. This allotted fund is utilized for sales promotion campaign.


People pouring Milk

Dairy/ Societies

BEMUL

Agents Dealers

Customers


MILK DISTRIBUTION ROUTES OF BEMUL:-

ROUTES

DISTRICT TALUKA OUTSIDER

BELGAUM I GOKAK SAWANTWADI

BELGAUM II BAILHONGAL GOA I

BELGAUM III T S HALLI GOA IA

BELGAUM IV RAMNAGAR GOA KUNDAIM

BELGAUM V RAIBAG GOA II

SULEBHAVI CASTLE ROCK GOA III

AUTO (M1) ITAGI MPCS GOA IV

AUTO (M2) BAILUR ROUTE GOA NAVY

AUTO (M3)

PARLOUR

EVE.SALES

EVE.SALES II

MIL.DAIRY

ADHOK SALES

TOTAL DISTRIBUTORS

216 110 100



BELGAUM MILK UNION LIMITEDBELGAUM MILK UNION LIMITED

BELGAUM GOA

Sl.No PARTICULARS Dealers Margin M.R.P Dealers Margin M.R.P

MILK

1 Tonned milk /Ltr 16.25 0.75 17.00 17.50 1.50 19.00

2 Standardised milk /Ltr 17.15 0.85 18.00 19.65 1.35 21.00

3 Full cream milk /Ltr 21.00 1.00 22.00 22.65 1.35 24.00

PRODUCTS

1 Ghee 200ml 218.18 21.82 240.00 186.36 18.64 205.00

2 Ghee 200 ml per

sachet

43.64 4.36 48.00 37.27 3.73 41.00

3 Ghee 500 ml 212.72 21.28 234.00 180.90 18.10 199.00

4 Ghee 500 ml per

sachet

106.36 10.64 117.50 90.45 9.05 99.50

5 Peda 100Grams 13.50 1.50 15.00 13.50 1.50 15.00

6 Peda 250 Grams 30.50 2.50 33.00 30.50 2.50 33.00

7 Peda /kg 122.00 10.00 132.00 122.00 10.00 132.00

8 Curds 200 ml 4.40 0.60 5.00 4.00 2.00 6.00

9 Curds 500 ml 9.25 0.75 10.00

10 Flavoured milk 200 ml 4.00 1.00 5.00 4.00 1.00 5.00

11 Sterilised Flavoured

milk

10.76 1.24 12.00 10.76 1.24 12.00

12 Tetra pack Flovored

milk

10.20 1.80 12.00

13 Masala Butter milk

200 ml

3.40 0.60 4.00 3.40 0.60 4.00

15 Sweet Lassi 200 ml 4.00 1.00 5.00 4.00 2.00 6.00

16 Kunda 250 Grams Tin 31.00 4.00 35.00 34.00 6.00 40.00

17 Kunda /kg 124.00 16.00 140.00 136.00 24.00 160.00



18 Badam powder sachet

10 Gm

225.25 24.75 250.00 225.25 24.75 250.00

19 Badam powder

200Gr /Tin

37.97 4.03 42.00 37.97 4.03 42.00

20 Badam powder 200

Grams

189.85 20.15 210.00 189.85 20.15 210.00

21 Jamoon mix 200

Grams

29.45 4.05 33.50 29.45 4.05 33.50

22 Jamoon mix / kg 147.23 20.27 167.50 147.23 20.27 167.50

23 Ghee 15 kg Tin (per kg

Rs.)

190.00 5.00 195.00 190.00 5.00 195.00

Market Segment:- There are 3 verities of milk in BEMUL. viz

1) Toned Milk 2) Standardized Milk 3) Full Cream Milk

TYPE OF MILK FAT (%) SNF (%)

Toned Milk 3 8.5

Standardized Milk 4.5 8.5

Full Cream Milk 6 9



Composition of milk

Milk may be defined as the whole,

fresh, clean, lacteal secretion

obtained by the complete milking

of one or more healthy milch

animals, excluding that obtained

within 15 days before or 5 days

after calving or such periods as

may be necessary to render the

milk practically colostrums-free

and containing the minimum

prescribed percentages of milk fat.

CHEMICAL COMPOSITION OF MILK:-

Sl. No Species Water FAT Protein Lactose Ash

1 Cow 86.6 4.6 3.4 4.9 0.7

2 Buffaloe 84.2 6.6 3.9 5.2 0.8



MILK PRODUCTS


http://www.kmfnandini.coop/html/products.htm






SWOT ANALYSIS

Strengths

Nandini enjoys good image.

Wide distribution network leads to regular and timely supply.

Milk processed is local milk, which reduces the transportation cost.

It enjoys highest market shares in the packed milk segment.

Weaknesses

Poor retail serving and consumer grievance handling.

Recurring quality problem.

Lowest paying brand i.e. commission given by the company is less compared to other

brands.

Inadequate sales promotional activity. Due to bad smell that persists causes low sales.

Opportunities

There is scope for developing in new area.

Availability of buffalo milk-improves market milk quality.

Predominant of loose milk segment-divide appropriate strategies.

Threats

No entry barriers for private players.

Low level of consumer awareness.

Persuade benefits of competing brand.



ADMINISTRATION DEPARTMENT:-

It is main dept in the BEMUL. There are totally 3 employees are working in the

dept. One of them is a Supervisor and the other two are helpers or subordinates. This dept is

act as a HRD and take care that whether all the employees are satisfied with present work or

not.

Functions of Administration Department:-

1. It will recruit the candidates and select the suitable candidate for the job.

2. It will conduct the training to the new employees as well as to the existing employees.

3. To maintain shifts timing. Etc...

The whole Administration dept has one sub dept by name MIS i.e.

Management Information System. The BEMUL seems in 3 shifts daily which includes

general shift also. The timings of these shifts are shown below:

I Shift 6-00 A.M. To 2-00 P.M.

II Shift 2-00 P.M. To 10-00 P.M.

III Shift 10-00 P.M. To 6-00 A.M.

General Shift 9-30 A.M To 5-00 P.M.

WELFARE FACILITIES:-

I. Statutory Facilities

a. canteen facilities

b. payment to provident fund contribution

c. Provision of toilets, Restroom sittings.

d. Leave facilities:



e. Uniforms are provided.

f. Provision of wash basins.

g. Medical benefits

Non Statutory Facilities.

a. Factory arranges cultural programs at the time of Ganesh chaturthi, workers day and

deepavali.

b. Factory often conducts demonstration through social workers in respect of family

planning, AIDS awareness, etc.

Financial Scheme:-

a. Employee gratuity scheme.

b. Employees’ group savings linked insurance scheme.

c. Employees’ death cum gratuity scheme.

d. Employees provided fund and pension scheme.


Casual Leave 15 days

Sick Leave 10 days

Earned Leave 30 days


FINANCE DEPARTMENT

The main activity of the finance department is to keep all the account of the financial

transactions. It is responsible for maintaining up to date account. The various activities are

collected to different sections.

THE STRUCTURE OF FINANCE DEPARTMENT:

MIS DEPARTMENT:-

MIS is a Management Information System. MIS is a Computer based information system.

MIS at BEMUL is divided into two types. Viz.

Daily Information Report:- The information is recorded daily regarding

the depts., like Procurement, Water Consumption, Ice Consumption etc..

Monthly Report:- Monthly records are available here like monthly stock

report, monthly progress report on milk procurement, monthly sales etc..

FUNCTIONS OF MIS:-

To maintain daily reports

To maintain information regarding input and output

Maintains town wise sales report

Reports regarding procurement and input

Maintaining accounts of daily purchase of ice and water.


DEPUTY MANAGER FINANCE

ASSISTANT MANAGER

HELPERS

ACCOUNT ASSISTANT

Deputy Manager

Quality Analyst

Lab Assistant Quality Assistant


QUALITY CONTROL DEPARTMENT

The Quality Control department has the following structure

At every stage, care is taken to ensure that the customer gets the products, which have

a very high quality. Hence there is a separate department called Quality Department. Where

the quality testing is done. There is a separate laboratory for this. Quality control is very

essential as to maintain the freshness of the milk. All the containers, pipes and other

equipments are washed with hot water before starting off with new production. There are

many tests conducted here. The packed milk we get will have undergone 3 quality tests.

First test is done on raw milk, which we get from chilling center. Next before standardization

and the last test before packing. The other tests conducted are:


Assistant manager

Quality Assistant Officer (Chemicals)

Assistant managerQuality Assistant Officer

(Chemicals)


TEST REASON

TemperatureShould be below 5 degrees

Clot on Boiling If mill curdles soon after billing milk is rejected

Acidity Test To test the extent of acidity

Alcohol Test To check the heat stability of milk

Lactometer To check the density of milk

Fat test Percentage of fat determined

SNF Test Percentage of SNF determined for pricing

SNF=CLR+FAT/4

ORGANIZATION CHART

President

Director Director Directors

Elected (8) (Ex-Officer-5) (Nominated – 3)

Managing Director



P & I Production Finance Admn security Mktg

Dy. Mang Dy. Mang Dy. Mang Dy. Mang Dy. Mang Dy. Mang

Extension Q.C. A/c’s assistant Jn. Suprv Asst.

Officer officer Asst

Helper Asst. Helper Asst.

INTRODUCTION TO PROJECT

WORK



INTRODUCTION TO PROJECT WORK:

A survey was conducted by me regarding CONSUMER PREFERENCE

TOWARDS NANDINI MILK & ITS PRODUCTS. Before introducing any product in

the markets, it’s inevitable to the organization to know the customer habits, taste, & their

needs, so that company can produce. & distribute the products & services to satisfy the

targeted customers.

. TITLE OF THE PROJECT:

“CONSUMER PREFERENCE TOWARDS NANDINI MILK & ITS PRODUCTS”

sub -Objectives:

To study the expectations of consumers from KMF products.

To identify the market leader of milk brand in the study area.



To know the satisfaction level of consumers with respect to Nandini Milk.

To know the factors influencing the consumers to purchase Nandini Milk.

To study the various competitors of Nandini Milk.

RESEARCH METHODOLOGY

STATEMENT OF THE PROBLEM:

The present study undertaken is entitled as “consumer preference towards Nandini

milk and its products”in Belgaum city.

The preparation of the report included extensive study of the organization and market

research, which was primary source of the report.

a. A study on “consumer preference towards nandini milk & its products in Belgaum

city.

b. Initial questionnaire preparation.

c. Framing the objectives.

d. Preparing the questionnaire based on objectives.

e. Analyzing the data.

f. Giving conclusions and recommendations based on findings.

I have collected information from consumers of the nandini milk and other milk by

preparing questionnaire and also collected the data from secondary sources such as

company brochures, books & websites.

Data Collection Methods:



Primary Data:

Primary data is collected directly from respondents through interview method using

structured questionnaire. Systematic collection of information is done directly from

consumers at random basis. Primary data is nothing but it is the data collected for the first

time.

Secondary Data:

Secondary data sources are the annual reports of the organization as well as monthly

report of the organization and also from the website www.kmf.com,

www.indianmilkdairy.com and harbinger of kmf, on line information

Sample Plan

As the project work is dependent on the study of the consumer preference.

Sampling unit : Individual consumers

Sampling method : Convenient sampling

Sample size : 100 consumers

Sampling instruments : Questionnaire and personal interview

Sampling area : Belgaum city with areas [Bhagya nagar, Hindwadi ,Adarsha Nagar,

Mahantesh nagar, 1st Gate, And 2nd gate ].

DATA MESEARMENT TECHNIQUE

Questionnaire: - questionnaire consists of question for end users and for consumers,

which are of the following types:-

(a) Multiple choice questions

(b) Both open – ended and questionnaire for writing down the study on consumer

preference towards Nandini Milk and its products.



LIMITATIONS OF THE STUDY:

As the time is given only 60 days to conduct the study. It is not possible to survey more

number of respondents so; it is restricted to 100 consumers only.

The study was restricted to certain areas of Belgaum. [Viz. Bhagya nagar,

Hindwadi ,Adarsha Nagar, Mahantesh nagar, 1st Gate, And 2nd gate ].

Even after assuring the respondents that the data will not be made publics and will be

used for the study only still the respondents hesitated to reveal certain information such as

their sales of other milk per month.

Many of the respondents were too impatient to complete the questionnaire.



Data analysis and interpretation.



ANALYSIS AND INTERPRETATION

TABLE NUMBER 1

Are you aware of Nandini milk?

100 100.0 100.0 100.0YesValidFrequency Percent Valid Percent

CumulativePercent



Are you aware of Nandini milk?

100.0%

Yes

INTERPRETATION: Out of `100 respondents all of them are aware of nandini milk.

TABLE NUMBER 2

Which type of milk are you using?

34 34.0 34.0 34.0

52 52.0 52.0 86.0

14 14.0 14.0 100.0

100 100.0 100.0

Branded

Unbranded

Combination of Both

Total

ValidFrequency Percent Valid Percent

CumulativePercent



Which type of milk are you using?

14.0%

52.0%

34.0%

Combination of Both

Unbranded

Branded

INTERPRETATION: Majority of the consumers in the Belgaum city are consuming

Unbranded milk. The remaining market share is captured by branded milk.

TABLE NUMBER 3

Which milk product you are using presently?

26 26.0 26.0 26.0

6 6.0 6.0 32.0

11 11.0 11.0 43.0

51 51.0 51.0 94.0

6 6.0 6.0 100.0

100 100.0 100.0

Nandini

Arokya

Aditya

Unbranded

Others

Total


CumulativePercent



INTERPRETATION: Apart from the Unbranded milk, the consumption of Nandini milk

is high among the branded milk.

TABLE NUMBER 4


Which milk product you are using presently?

6.0%

51.0%

11.0%

6.0%

26.0%

Others(Gokul,Warana)

Unbranded

Aditya

Arokya

Nandini

How do you buy Milk products?

10 10.0 10.0 10.0

22 22.0 22.0 32.0

68 68.0 68.0 100.0

100 100.0 100.0

Grocery shop

Milk parlor

Home delivery

Total


CumulativePercent


INTERPRETATION: Most of the consumers prefer home delivery for the consumption of

milk as it is convenient.

\

TABLE NUMBER 5

How much quantity of milk you are purchasing daily?

4 4.0 4.0 4.0

26 26.0 26.0 30.0

58 58.0 58.0 88.0

12 12.0 12.0 100.0

100 100.0 100.0

250 ml

500 ml

1000 ml

Above 1000 ml

Total


CumulativePercent


How do you buy Milk Products?

68.0%

22.0%

10.0%

By Home delivery

From Milk parlor

From Grocery shop


How much quantity of milk you are purchasing daily?

12.0%

58.0%

26.0%

4.0%Above 1000 ml

1000 ml

500 ml

250 ml

INTERPRETATION: Due to the size of the family most of the respondent’s daily

consumption of milk is 1000ml.

TABLE NUMBER 6



What factors you consider while purchasing milk among the following?

18 18.0 18.0 18.0

20 20.0 20.0 38.0

15 15.0 15.0 53.0

16 16.0 16.0 69.0

15 15.0 15.0 84.0

16 16.0 16.0 100.0

100 100.0 100.0

Price

Service

Freshness

Creaminess

Thickness

Credit

Total


CumulativePercent

What factors you consider while purchasing milk

among the following?

Credit

Thickness

Creaminess

Freshness

Service

Price

INTERPRETATION: Price and Service are the the major factors which contribute to the

sale of milk. Consumers expect good service like home delivery as well as low price.

TABLE NUMBER 7



How do you know about Nandini products?

24 24.0 24.0 24.0

6 6.0 6.0 30.0

53 53.0 53.0 83.0

17 17.0 17.0 100.0

100 100.0 100.0

Television

Friends

Wall painting

Others

Total


CumulativePercent

INTERPRETATION: Nandini milk has used wall painting as effective tool of

advertisement to attract the consumers. Wall painting has a major impact on the consumers

to create the awareness of the product.

TABLE NUMBER 8


How do you know about Nandini products?

17.0%

53.0%

6.0%

24.0%

Others(Pamplets,Hoardings)

Wall painting

Friends

Television


Indicate your opinion about Nandini milk with respect to the mentioned attributes?

Price

18 69.2 69.2 69.2

7 26.9 26.9 96.2

1 3.8 3.8 100.0

26 100.0 100.0

High

Moderate

Low

Total


CumulativePercent

Price

3.8%

26.9%

69.2%

Low

Moderate

High

INTERPRETATION: The existing consumers of Nandini milk feel that the price of

Nandini milk is high.

TABLE NUMBER 9



Quality

20 76.9 76.9 76.9

4 15.4 15.4 92.3

2 7.7 7.7 100.0

26 100.0 100.0

High

Moderate

Low

Total


CumulativePercent

INTERPRETATION : The consumers of Nandini milk are highly satisfied with the

quality of milk.

TABLE NUMBER 10


Quality

7.7%

15.4%

76.9%

Low Quality

Moderate Quality

High Quality


INTERPRETATION: The consumers of Nandini milk are highly satisfied with the taste of

milk.They say that taste of Nandini milk is good.

TABLE NUMBER 11


Taste

19 73.1 73.1 73.1

5 19.2 19.2 92.3

2 7.7 7.7 100.0

26 100.0 100.0

Good

Better

Avg

Total


CumulativePercent

Taste

7.7%

19.2%

73.1%

Average taste

Better taste

Good taste


Thickness

8 30.8 30.8 30.8

7 26.9 26.9 57.7

11 42.3 42.3 100.0

26 100.0 100.0

High

Moderate

Low

Total


CumulativePercent

Thickness

42.3%

26.9%

30.8%

Low

Moderate

High

INTERPRETATION: Most of the consumers of nandini milk are unsatisfied with the

thickness of the milk which is low compared to other brands.

TABLE NUMBER 12



Packaging

18 69.2 69.2 69.2

7 26.9 26.9 96.2

1 3.8 3.8 100.0

26 100.0 100.0

Convenient

Attractive

Not Attractive

Total


CumulativePercent

Packaging

3.8%

26.9%

69.2%

Not Attractive

Attractive

Convenient

INTERPRETATION: The quality of packaging of Nandini milk is good. The datails

provided on the packet add value to the product.

TABLE NUMBER 13



Brand image

17 65.4 65.4 65.4

8 30.8 30.8 96.2

1 3.8 3.8 100.0

26 100.0 100.0

High

Moderate

Low

Total


CumulativePercent

Brand image

3.8%

30.8%

65.4%

Low

Moderate

High

INTERPRETATION: Nandini milk has created good brand image into the minds of

consumers.

TABLE NUMBER 14



Why you are not consumer of Nandini milk?

13 17.6 17.6 17.6

14 18.9 18.9 36.5

10 13.5 13.5 50.0

21 28.4 28.4 78.4

16 21.6 21.6 100.0

74 100.0 100.0

Price

Service

Freshness

Creaminess

Any other

Total


CumulativePercent

INTERPRETATION: Lack of creaminess is the main reason due to which consumers are

not preferring Nandini milk compared to other milk.


Why you are not consumer of Nandini milk?

21.6%

28.4%

13.5%

18.9%

17.6%Any other (No Butter, Milk smells)

Creaminess

Freshness

Service

Price


FINDINGS

FINDINGS

From the survey I have found out the following results:



Consumers have brand preference for Nandini milk.

Among the branded milk, Nandini milk is dominating. It has captured majority of

the market segment. The consumers prefer Nandini milk compared to other brand

milk.

Price and Service are the major factors which contribute to the sale of milk.

Consumers expect good service like home delivery as well as low price.

The consumers of Nandini milk are highly satisfied with the quality of milk.

The consumers of Nandini milk are highly satisfied with the taste of milk. They

say that taste of Nandini milk is good.

The quality of packaging of Nandini milk is good. The details provided on the

packet add value to the product.

Nandini milk has created good brand image into the minds of consumers.

Most of the consumers of Nandini milk are unsatisfied with the thickness of the

milk which is low compared to other brands.

Lack of creaminess is the main reason due to which consumers are not preferring

Nandini milk compared to other milk.

The major competitors of Nandini milk in the market are Adiya milk, Arokya

milk, Gokul milk, Warana milk etc along with lose milk sellers

II ) When general question were asked



The main reasons for purchasing loose milk are door delivery, thickness, low price,

creaminess and they provide credit facility.

The main reasons for people not to purchase NANDINI milk are no door delivery,

less creaminess, less thickness, no credit facility.

Complaints regarding NANDINI?

1) High price of the milk cannot make the common people to afford it.

2) No cream appears on the milk.

3) Cannot get good quality curd from the milk.

4) Cannot get the butter.

5) Quality of milk is not maintained regularly.

6) Shortage of supply in summer season.(evening route).

7) Agents’ complaints that crates are not clean.

8) The agents mention that some time leakage/damage of milk packet occur in the crate

due to the over packing of milk in the crate.(12 liters instead of 10 liters.)

Suggestions



1) As many want buffalo Milk Company should go for FULL CREAM BUFFALO

MILK product item as family milk.

2) As majority knows that dairy milk is good for children the company should target its

STANDARD milk as children milk.

3) As the packet milk users have tendency of skipping from one brand to another brand

the company should take it as an opportunity to attract the consumers who are using

other brands of milk.

4) As the door delivery is an effective sourcing, the company should follow it’s a

distribution channel.

5) BEMUL should take care to maintain the cleanliness of the crate.

6) There should be no over packing of milk in the crate to avoid leakage of the milk.

7) BEMUL has to provide door delivery facility to the customers because maximum

number of people purchases loose milk due to door delivery facility.

8) The people prefer to purchase loose milk because credit facility &door delivery ,so

BEMUL should try to give credit facility to the customer in order to increase its sales.

9) Effective sales promotional activities such as advt, banners, hoardings, and pamphlets

should be distributed to attract the consumers.



CONCLUSION

Belgaum Milk Dairy is providing quality milk and milk products. It has succeeded in

creating good name in the minds of people for its quality, availability and relatively

satisfying the needs of consumers.

• Consumer’s perception towards nandini milk is excellent as it has good brand image

in the market.

• Most of the consumers said that the advertisement of nandini milk is not effective

compared to the other competitors.

• As compared to other milk brands, the promotional activities of nandini milk is low

ANNEXURE



QUESTIONNAIRE

Dear Sir/Madam,

I am pleased to introduce myself Girish. J. Shiragannavar an MBA student of KLS

-Institute of Management Education and Research Belgaum, as a part of our curriculum, I

am doing my summer in plant project in Belgaum milk union ltd, and am undertaking a

survey on “Consumer preference towards Nandini milk and its milk products in

Belgaum City”. The information provided by you will be strictly kept confidence and used

for academic purpose only.

Your co-operation will be highly appreciated.

Name: ___________________________________

Address: _________________________________

1. Are you aware of Nandini milk?

a) Yes b) No

2. Which type of milk you are using

a) Branded b) Unbranded

c) Combination of Both

3. Which milk product you are presently using

a) Nandini

b) Arokya

c) Aditya

d) Unbranded

e) Other

4. How do you buy milk products?

a) Grocery shop b) Milk Parlor

c) Home delivery

5. How much quantity of milk you are purchasing daily?



a) 250ml b) 500ml

c) 1000ml d) Above 1000ml

6. What factors do you consider while purchasing milk among the following?

a) Price b) Service

c) Freshness d) Creaminess

e) Thickness f) Credit

7. Why you are not consumer of NANDINI milk?

a) Price b) Service

c) Freshness d) Creaminess

e) Any other

8. How do you know about NANDINI products?

a) Television b) Friends

c) Wall painting d) Others

12. Indicate your opinion about Nandini milk with respect to the mentioned attributes?

Attributes High Moderate Low

Price

Quality

Taste

Thickness

Packaging

Brand image

13) Complaints regarding NANDINI?



14) If any Suggestions

Thank you



BIBLIOGRAPHY

Annual Reports of Belgaum Milk Union.

Journals of KMF

Marketing Management - By Philip Kotler

Marketing Research - By Tull and Hawkins

WEBSITES:

WWW.KMF NANDINI.COM

WWW.INDIANDAIRY.COM


http://WWW.INDIANDAIRY.COM/

http://WWW.KMF/

Girish final report

Documents

belgaum milk union

nandini milk

liters of milk

milk diary

milk production

india dairy enterprise

indias96000 dairy cooperative

develoment of dairy