SUMMER TRAINING REPORT ON “Study of consumer Perception about Verka products” Submitted in partial fulfillment of the requirements for the degree of Master of business administration (2008-2010) affiliated to Punjab Technical University, Jalandhar Project Guide SUBMITTED BY Ms. Mandeep Mahendru Gundeep Singh Faculty of Management BBA-5 th Sem. 1
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SUMMER TRAINING REPORT
ON
“Study of consumer Perception about
Verka products”
Submitted in partial fulfillment of the requirements for the degree of Master of business administration (2008-2010) affiliated to Punjab Technical University, Jalandhar
Project Guide SUBMITTED BY
Ms. Mandeep Mahendru Gundeep Singh
Faculty of Management BBA-5th Sem.
GJ-IMT, Mohali Roll No.:-8100132012
GIAN JYOTI INSTITUTE OF MANAGEMENT AND TECHNOLOGY
MOHALI
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ACKNOWLEDGEMENT
I would like to thank General Manager Verka Milk Plant, Mohali, for
providing me this wonderful opportunity to work with ‘Roper Distt. Milk
Producers Union Cooperative Ltd.’
I am extremely thankful to In-charge (Marketing MR………………. and
entire marketing division for their invaluable support and inputs in this
project.
I extend my sincere gratitude to various respondents and citizens of Mohali
who spared their valuable time and contributed to consumer survey.
GUNDEEP SINGH
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DECLARATION
I undersigned here by declare that the summer training project report
submitted to my college Gian Jyoti Institute of management and
technology. In partial fulfillment for the degree of master of business
administration on “study of consumer Perception about Verka
products” is a result of my own work under continous guidance and
kind co-operation of our college faculty member Ms. Mandeep
mahendru. I have not submitted this training report to any other
university for the award of degree.
GUNDEEP SINGH
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CERTIFICATE OF COMPLETION
This is Certify that Mr. GUNDEEP SINGH BBA (IVth Semester) has
successfully completed her project titled “Study of consumer behaviour
about verka products” under the guidance of Ms. Mandeep Mahendru.
This is in the partial fulfillment of her MBA curriculum (2008-2010)
Dated:
Ms. Mandeep Mahendru
(Project guide)
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PREFACE
For management careers, it is very important to develop managerial skills .In
order to achieve positive and concrete results, along with theoretical
concepts, the exposure of real life situation existing in a corporate world is
very much needed. To fulfill this need, this type of practical training is
required.
I underwent summer training in VERKA MILK PLANT, located in Mohali.
It was my fortune to get training in a very healthy company. I got great
opportunity to view the overall working of the organization. In the
forthcoming pages, I have attempted to present a report covering different
aspects of my training.
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EXECUTIVE SUMMARY
Customers today are more informed and more demanding than ever. They
know quality service when they get it and they aren’t afraid of taking their
business elsewhere if they don’t get it. Most manufacturers have taken this
fact to heart because a refusal to acknowledge this reality can spell - failure -
rejection by the one who holds the purse strings and the key to profits.
Satisfaction of customer needs, in fact, provides a rationale for the
firm’s existence. Therefore consumer behavior lies at the heart of modern
marketing and its knowledge is vital for a firm’s existence, growth and
success. An understanding of the motives underlying the consumer behavior
helps a firm to seek better and more effective ways to satisfy consumers.
Consumer behavior, however, is a complex system where there is an
interaction of various social, economic and psychological factors. All these
factors affect the purchase decision of the buyer and his perception about
different products. Buying decision process incorporates all the activities
that individuals go through in their role as consumers. It starts right from the
time when there is a state of deprivation (need arousal) and goes through a
point when a means of need satisfaction has been obtained. It ends at a
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juncture when the product has been used for a sufficiently long period of
time to judge the level of satisfaction (post - purchase evaluation).
Satisfaction is the key to generate repeat business. It ensures customerloyalty
and determines whether a customer would come to the company again.
TABLE OF CONTENTS
Chapter No. Contents Page No.
1.Introduction
1.1 Industry profile (Milkfed)
1.2 Objectives
1.3 Company Profile (Verka)
8-37
8-14
15-37
2. Review of literature 38-41
3. Research Methodology 42-48
4. Data analysis & Interpretations 49-61
5. Conclusion 62-63
6. SWOT Analysis 64-66
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7. Suggestions and recommendations 67-71
8. Bibliography 72-73
9. Annexure 74-78
CHAPTER NO. 1
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INTRODUCTION
1.1 MILKFED-PUNJAB
(Introduction)
The Punjab State Cooperative Milk Producers’ Federation Limited popularly
known as MILKFED Punjab, came into existence in 1973 with a twin
objective of providing remunerative milk market to the Milk Producers in
the State by value addition and marketing of produce on one hand and to
provide technical inputs to the milk producers for enhancement of milk
production on the other hand.
Although the federation was registered much earlier, but it came to real self
in the year 1983 when all the milk plants of the Punjab Dairy Development
Corporation Limited were handed over to Cooperative sector and the entire
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State was covered under Operation Flood to give the farmers a better deal
and our valued customers better products. Today, when we look back, we
think we have fulfilled the promise to some extent. The setup of the
organization is a three tier system, Milk Producers Cooperative Societies at
the village level, Milk Unions at District level and Federation as an Apex
Body at State level. MILKFED Punjab has continuously advanced towards
its coveted objectives well defined in its byelaws.
1.2 Objectives of MILKFED
1. To provide remunerative prices to milk producers by value addition and
marketing of produce.
2. To provide technical inputs for enhancement of milk production on the
other hand.
3. To carry out activities for promoting production, procurement processing
and marketing of milk and milk products for economic development of the
farming community;
4. To purchase and/or erect buildings, plants, machinery and other ancillary
equipment to carry out business;
5. To study problems of mutual interest related to production, procurement
and marketing of dairy and allied products;
6. To establish research and quality control laboratories;
7. To make necessary arrangements for transfer of milk allied milk products
and commodities;
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8. To market its products under its own trade name/brand name with its
Member Union’s trade mark/brand;
9. To promote the organization of primary societies and assist members in
organization of the Primary Societies; and
ACHIEVEMENTS
On the basis of quality with efficient administration, MILKFED has not only
established new mile stone of providing services to Dairy farmers but scaled
new heights in delighting esteemed customers also.
1. MILKFED is providing technical input services like animal healthcare,
supply of quality cattlefeed, fodder seeds etc. at the door steps of the dairy
farmers under its Productivity Enhancement Programme.
2. For producing quality technical services MILKFED has established its
own two cattle feed plants having capacity of three hundred metric ton per
day.
3. During the last 3 years, 8 Milk Plants and 2 Cattle Feed Factories of
MILKFED, Punjab were accedited with ISO9002 and IS-15000 (HACCP)
Certification.
4. In view of today's interest of consumers in getting quality and safe
products, MILKFED is manufacturing quality milk and milk products as per
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International Standards and also exploring the possibility of manufacturing
milk products of consumer's choice.
5. MILKFED has launched its own interactive Website on Internet for its
prospective customers which can be accessed by clicking
http//www.milkfed.nic.in
6. MILKFED introduced liquid milk in new design packing with Mnemonic
Symbol of Co-operative Milk in all the District Milk Unions.
Critical analysis of Milk fed
Corporate Focus
MILKFED is serving the cause of Milk producers of the state in
collaboration with National Dairy Development Board by increasing the
number of functional MPCSs from 4642 in 1990-91 to 6248 in 2000-01 and
their membership rose by 90000 from 2.63lac in 1991 to 3.53lac during the
same period. This has resulted in increase of milk procurement from 1438lac
in 1991 to 3371lac liter in 2000-01. However, rehabilitation plan of sick
Milk unions has yet to reach the implementation stage.
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Strength/Care Competency/Opportunities:
MILKFED earned a net profit of Rs.3.19crore in 2000-01. Its core
competency in marketing of Milk &Milk products by creating a marketing
infrastructure is serving a social purpose by providing income to land-less
laborers small and marginal farmers scheduled caste families and households
headed by women having just one or two cattle only as nearly 90% of the
member of Milk producer’s Cooperative Societies belong to these categories
(Annexure 20) “Operation Flood” programmed of dairy development is
implemented by it in the state.
MILK VISION 2004 to stabilize the gap between Milk procured during peak
seasons and lean season has been drawn by MILKFED to optimally utilize
Milk plants for reducing their losses. Moreover, Model diary farms in
collaboration with Technology information and Assessment Council
(TIFAC) are being developed by it at a capital outlay of Rs.2.00crore.
Restructuring/revival
Export Ropar and Ludhiana Milk unions the remaining 9 unions are
incurring losses. Their combined accumulated looses are Rs.76.33crore as
on 31-03-2001. This way, cooperative Milk union’s structure of MILKFED
is losing its commercial viability over the last two years by restricting itself
to the sale of Milk and Milk products only and not exploiting its well
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developed procurement sale and supply distribution channels to market fresh
vegetables and fruits along with processing and procurement of oil seeds. To
make these plants viable and socially sustainable the introduction of latest
technology in Milk; plants and full exploitation of its marketing strength in
procurement and marketing network is the need of the hour. MILKFED is a
vital mechanism for more them one reason in the Punjab context. First and
foremost it is engaged in raising the viability of Agriculture of the
small/marginal farmers. Landless labors, families with no male earners and
the scheduled castes. It is therefore of utmost importance that the
Government of Punjab make its due contribution for the purpose of
leveraging finances or the National Dairy Development Board and other
cooperative institutions. Infect, If necessary Government should get District
Milk Union Cooperative so that hitherto slow extension is intensified and
the
maximum potential for cost reduction is achieved. The other important
reason for Government to support this activity even by subsides to induce a
shift out of the paddy- wheat rotation by encouraging the cultivation of
better seeds vegetable, Fruits and eventually oil seeds and meat products.
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1.3 INTRODUCTION &
GENERAL FEATURES OF MILK PLANT MOHALI
NAME: Verka Milk Plant.
ADDRESS: Verka Milk Plant
PHASE 6, Mohali
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RAW MATERIAL: Milk.
PRODUCTS: Ghee, Pasteurized milk,
Milk powder, Curd, Cheese,
Milk Cake, Sweet flavored milk.
WORKING HOURS: 24 hours (3 shifts).
TOTAL WORKERS: 163.
Capacity 1 Lakh Ltrs per day.
PROFILE OF THE UNIT
The elegant building situated on Patiala road just before we enter Sangrur is
that of Milk Plant owned by The Sangrur District Co-operative Milk
Producers Union Ltd. Its foundation stone was laid by India’s Home
Minister Mrs. Uma Shanker Dixit in 1973. It started its production in 1979.
Its name was registered as “The Sangrur Distt. Co-operative Milk
Producers Union Ltd. Sangrur”. It has been registered under Punjab Co-
operative Societies Act 1961 on 24 March 1973. This union started its milk
procurement from March 1974.
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The union is working under the laws of act. In the beginning 13 societies
became its members. But this union started as milk procurement from 1974.
Initially its office was situated on the upper side of co-operative bank of
Barnala. At that time Milk Plant Sangrur was not existing. Initially the
societies of Barnala circle were started, after this it was expanded and
centers were approved at Dhuri and Malerkotla. At that time this union
collects milk from other societies and to Horlicks. Before it, except Horlicks
there was no major buyer of milk and Horlicks was a private concern giving
low rates.
After that the union was strengthened and milk producers got benefited by
this union as they were getting reasonable rates for their from. A project
report of Milk Plant Sangrur was made at that time with shares from
different societies were to be collected and it includes Rs 100 share money
and Rs 5 admission fees, 15 lack Rs were to be collected and in this manner
and the share of government was fixed at Rs 40 lack.For the smooth running
of the plant, the union had taken loan of worth Rs 62 lack from Co-operative
Development Corporation. By this loan a milk plant was established. It
started milk of 45000 liters per day in December 1979 further it was
expanded with the help of National Diary Development Board at ANAND
under the “Operation Flood” programmed. After few years a drier was
installed with a capacity of 10 tones. For the purchase of this machinery
70% of loan was taken from NDDB and 30% loan from government in the
form of subsidy. The total investment in the plant was 6.5 crores.
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LOCATION AND LAYOUT
In the milk plant there are hard receiving departments: Production and
Engineering. The location of the stores department is carefully planned out
and it is housed in a position which is very near to production department so
that transportation charges are minimum. It is also easily accessible to all
other departments like engineering, boiling, refrigeration, powder plant and
workshop.
The layouts of plants store is properly planned. There are shelves,
racks, admirals and handling devices for keeping the material and
equipments properly. The store is divided into racks which are further sub-
divided into small spaces allocated. Special attention is paid to storage of
material which is liable to leakage or evaporation and deterioration.
SELECTION OF ROUTES:
Routes are selected for the delivery of milk through these societies. Shortest
milk routes are preferable so that milk reach to plant in same condition,
otherwise milk can become sour or curd. The societies which are far away
from milk plant, the four milk chilling centers are established for them.
Societies send milk directly to milk plant or through chilling centers. These
chilling centers chill milk at 4 degree Celsius which keeps the milk in good
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condition for 24 hours. After chilling the milk these centers send milk to the
milk plant.
REGISTERATION OF THE SOCIETY AND THE
MEMBERS:
When a society is fully formed for the collection of milk it is registered
under the registration act of societies. Its members are also registered and
given members pass books and share certificates. A copy of rules and
regulations are also given to them. Then the actual milk collection starts.
MILK PROCUREMENT IN DIFFERENT SEASONS
Milk Plant Sangrur procures milk in three seasons. First comes the lean
season i.e. the months of May. June, July and August. In this season milk is
available in very low quantity i.e. 25000 liters per day. The second season is
mid-season i.e. the months of March, April, September and October. In this
season the procurement of milk is about 50000 liters per day. The most
awaiting season is flush season i.e. the months of November, December,
January and February. In this season the procurement of milk is maximum
i.e. 65000 liters.
MILK PROCUREMENT IN LAST 7 YEARS:
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Year saver age milk procurement per day (in liters) total milk handling.
2001- 85000 liters per/day
2002- 80000 liters per/day
2003- 70000 liters per/day
2004- 75000 liters per/day
2005- 70000 liters per/day
2006-65000 liters per/day
2007- 60000 liters per/day
2008- 62000 liters per day
MAIN CENTRES AND THEIR BRANCHES:
About 300 milk producing societies come under Milk Plant Sangrur which is
operating in the whole Sangrur district. All these are divided into six main
centers which are as under:
LOCAL SANGRUR 140
MALERKOTLA 50
SEHNA 30
20
MEHAL KALAN 30
CHANGALIWALA 30
SANDHORE 20
(A) MILK PROCUREMENT PER DAY
NAME OF THE SOCIETYMILK PER DAY (in liters) Local Sangrur
40000 Sehna 8000 Mehal Kalan 5000 Chanhaliwala 7000
(B) PRODUCTION
Production is the foundation on which every organization is built.
Production is an internal act of producing something in an organized
manner. It is the fabrication of a physical object through the use of men,
material and equipment. Thus the basis of production is the transformation
of inputs into goods and services. In milk plant Sangrur two different plants
are established for the production of Ghee and SMP. These are called:
1. Powder Plant.
2. Production plant.
In powder plant Skimmed Milk Powder is prepared from spreta milk which
comes from production department. In production plant Ghee is prepared
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from cream after its separation from milk. Here pasteurized milk is also
prepared. Sometimes milk cake is also prepared according to its
requirement. In addition to it there are arrangements for filling sweet milk
bottles. Powder and Ghee are made only in flush season when milk is
available in large quantity. In lean season production fails because of non-
availability of milk. In months of May, June, August is done; sometimes
glucose is made here on contract basis.
(C) QUALITY CONTROL
Quality control includes techniques and systems for the achievement of the
required quality of the raw material as well as final products. Most often
milk vendors adulterate the milk in such a way that normally consumers are
to be fooled. Consumers remain obvious to the various ways and means
adopted by milk vendors to adulterate milk. Here are some eye openers:
1. Urea, caustic soda and salt are added to thicken the milk.
2. Milk powder is also used for thickening and usually the powder used
is sub-standard.
3. Synthetic milk is added to pure milk to increase the quantity.
4. Sometimes pure milk is separated, the cream is removed and the
skimmed milk powder is added to it.
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(D) ACCOUNTING :
Accounting is the art of recording, classifying and summarizing in a
significant manner, and in terms of money transactions and events which are
in part at least of financial character and interpreting the results thereof. In
milk plant Sangrur this section performs the functions of maintaining the
accounts of stores material and milk products by union and to make
payments at right time. Like this to maintain the accounts of milk and milk
products sold by the union and to receive the payment for goods sold to
consumers, concerned sections and branches. The bills are prepared by
accounts branch according to 10 days milk purchase from producers and
societies. It is the duty of this section to maintain the accounts according to
rules and regulations mentioned by Registrar Co-operative Department and
to follow the restrictions and suggestions imposed by auditor.
(E) MARKETING
Milkfed Punjab is serving nationwide consumers through its network of
regional offices and strong distribution channels. Milkfed markers a wide
variety of products liquid milk, skimmed milk powder and many more.
ACHIEVEMENTSMilk Procurement: - Milk Plant procured about
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55,000 Lt. of milk per day through 19 Milk routes in the Flush Season.
Animal Health Care & Other Technical Inputs: - In addition to
Organizing the remunerative Milk market system Through milk producers
cooperative societies, Milk Plant is also providing regular health coverage
by running 2 vet nary routes and 55 Artificial Insemination Service Stations
at Society level.Genetic Improvement of Milch Animals Under this, lay
inseminators are trained who are in-turn, doing Artificial Insemination at the
door steps of Dairy Farmers.Supply of Balanced Cattle Feed: -
Special attention has been paid to the supply of balanced cattle feed to the
milk producers so as to enhance the milk production. Four types of cattle
feeds are being supplied i.e. ISI Type, High Energy, Bye Pass Protein Feed
& Buffalo super feed to meet the requirements of Milk Producers.Supply of
Improved Varieties of Fodder Seeds: - Cows does not produce ample milk
without ample fodder. Through research and seed-farms, Milkfed has
worked t provide the farmers high yielding forages at low cost. Fodder
Development activities initiated by Milkfed have created a good demand for
improved fodder seeds in Punjab. Milkfed established its own seed
processing unit in 1985, the unit is automated and has the capacity to grade
16 million tons of fodder seed per day.Quality Assurance Program:
Quality Assurance Program (QAP) which is a part and parcel of Dairy Plant
Improvement Program (DPIP) was taken up in Ludhiana Milk Union with
the Technical guidance from NDDB. The main objective of the program is
to improve efficiency of Plants coupled with loss management to bring
down the cost of production, improve the quality of milk and milk products
manufactured to ameliorate the general hygienic and house keeping
standards and above all to enhance the profitability and financial viability of
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the Milk Plants to enable milk producers to get better price for their
produce.MAIN PRODUCTS MANUFACTURED BY MILK
PLANT The main products which are manufactured by the milk plant
Sangrur are as under:1. Ghee.2. Pasteurized Milk.3. Milk