Comparative Study of Milma Chocolate with Other Brands CHAPTER I INTRODUCTION Milk is an unavoidable element in the life of the keralites. In olden days, Kerala was far ahead in production of milk. But due to several reasons production of milk declined. Milk is the ancient as mankind itself, as it is the substance created to feed the mammalian infant. All species all mammals from man to whales produce milk for this purpose. Terminology differs slightly between countries .in particular in the U.S dairy can be a facility that processes, distributes and sells dairy products. As an attributive the word diary refers to milk based products and derivatives and processes. The animals and workers involved are considered as dairy cattle and dairy workers respectively. A dairy farm produces milk and dairy products. These establishments constitute the dairy industry, a component of the food industry. 1 | Page
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Comparative Study of Milma Chocolate with Other Brands
CHAPTER I
INTRODUCTION
Milk is an unavoidable element in the life of the keralites. In olden days,
Kerala was far ahead in production of milk. But due to several reasons
production of milk declined. Milk is the ancient as mankind itself, as it is the
substance created to feed the mammalian infant. All species all mammals from
man to whales produce milk for this purpose.
Terminology differs slightly between countries .in particular in the U.S
dairy can be a facility that processes, distributes and sells dairy products. As an
attributive the word diary refers to milk based products and derivatives and
processes. The animals and workers involved are considered as dairy cattle
and dairy workers respectively. A dairy farm produces milk and dairy
products. These establishments constitute the dairy industry, a component of
the food industry.
Chocolate comes from the seeds of the cacao plant, which is native to
South America''s tropical rain forest. At least 3000 years ago, the
Mesoamericans discovered how to process the beans to release the distinctive
chocolate flavor, and drank it as a sacred beverage. Cacao is now grown all
over the world, which annually consumes more than a million tons of
processed chocolate. But cacao yields around the world are falling, because the
pollination rate of commercially cultivated cacao plants is extremely low.
Plantations are also plagued by diseases, expensive to run, and consume
precious rain forest. Scientists have recently learned that cacao flowers are
According to one estimate, the packed milk segment would double in the next
five years, giving both strength and volume to the modern sector. The narrow
tip at the top is a small but affluent market for western type milk products.
2.1.5.2. Growing Volumes
The effective milk market is largely confined to urban areas, inhabited
by over 25 per cent of the country's population. An estimated 50 per cent of the
total milk produced is consumed here. By the end of the twentieth century, the
urban population is expected to increase by more than 100 million to touch 364
million in 2000 a growth of about 40 per cent. The expected rise in urban
population would be a boon to Indian dairying. Presently, the organized sector
both cooperative and private and the traditional sector cater to this market.
The consumer access has become easier with the information revolution.
The number of households with TV has increased from 23 million in 1989 to
45 million in 1995. About 34 per cent of these households in urban India have
access to satellite television channel.
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2.1.5.3. Potential for further growth
Of the three A's of marketing - availability, acceptability and
affordability, Indian dairying is already endowed with the first two. People in
India love to drink milk. Hence no efforts are needed to make it acceptable.
Its availability is not a limitation either, because of the ample scope for
increasing milk production, given the prevailing low yields from dairy cattle. It
leaves the third vital marketing factor affordability. How to make milk
affordable for the large majority with limited purchasing power? That is
essence of the challenge. One practical way is to pack milk in small quantities
of 250 ml or less in polythene sachets. Already, the glass bottle for retailing
milk has given way to single-use sachets which are more economical. Another
viable alternative is to sell small quantities of milk powder in mini-sachets,
adequate for two cups of tea or coffee.
2.1.5.4. Marketing Strategy for 2000 AD
Two key elements of marketing strategy for 2000 AD are: Focus on
strong brands and, product mix expansion to include UHT milk, cheese, ice
creams and spreads. The changing marketing trends will see the shift from
generic products to the packaged quasi, regular and premium brands. The
national brands will gradually edge out the regional brands or reduce their
presence. The brand image can do wonders to a product's marketing as is
evident from the words of Perfume Princess Coco Channel: In the factory, we
pack perfume; in the market, we sell hope!
2.1.5.5. Emerging Dairy Markets
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Food service institutional market: It is growing at double the rate of
consumer market
Defense market: An important growing market for quality products at
reasonable prices
Ingredients market: A boom is forecast in the market of dairy products
used as raw material in pharmaceutical and allied industries
Parlour market: The increasing away-from-home consumption trend
opens new vistas for ready-to-serve dairy products which would ride
piggyback on the fast food revolution sweeping the urban India.
India, with her sizable dairy industry growing rapidly and on the path of
modernization, would have a place in the sun of prosperity for many decades
to come. The one index to the statement is the fact that the projected total milk
output over the next 15 years (1995-2010) would exceed 1457.6 million tonnes
which is twice the total production of the past 15 years!
2.1.5.6. Penetration of milk products
Western table spreads such as butter, margarine and jams are not very
popular in India. All India penetration of butter/ margarine is only 4%. This is
also largely represented by urban areas, where penetration is higher at 9%. In
rural areas, butter/ margarine have penetrated in 2.1% of households only. The
use of these products in the large metros is higher, with penetration at 15%.
Penetration of cheese is almost nil in rural areas and negligible in the
urban areas. Per capita consumption even among the cheese-consuming
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households is a poor 2.4kg pa as compared to over 20kg in USA. The lower
penetration is due to peculiar food habits, relatively expensive products and
also non-availability in many parts of the country. Butter, margarine and
cheese products are mainly manufactured by organized sector.
Similarly, penetration of ghee is highest in medium sized towns at
37.2% compared to 31.7% in all urban areas and 21.3% in all rural areas. The
all India penetration of ghee is 24.1%. In relative terms, penetration of ghee is
significantly higher in North and West, which are milk surplus regions. North
accounts for 57% of ghee consumption and West for 23%, South & East
together account for the balance 20%. A large part of ghee is made at home
and by small/ cottage industry from milk. The relative share of branded
products in this category is very low at around 1-2%.
Milk powder and condensed milk have not been able to garner any
significant consumer acceptance in India as indicated by a very low 4.7%
penetration. The penetration is higher at 8.1% in urban areas and lower at 3.5%
in rural areas. Within urban areas, it is relatively higher in medium sized towns
at 8.5% compared to 7.7% in a large metros.
2.1.5.7. Market Size And Growth
Market size for milk (sold in loose/ packaged form) is estimated to be
36mn MT valued at Rs470bn. The market is currently growing at round 4% pa
in volume terms. The milk surplus states in India are Uttar Pradesh, Punjab,
Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and
Tamil Nadu. The manufacturing of milk products is concentrated in these milk
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surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh,
Rajasthan, Tamil Nadu and Gujarat together account for 58% of national
production.
Milk production grew by a mere 1% pa between 1947 and 1970. Since the
early 70's, under Operation Flood, production growth increased significantly
averaging over 5% pa.
About 75% of milk is consumed at the household level which is not a
part of commercial dairy industry. Loose milk has a larger market in India as it
is perceived to be fresh by most consumers. In reality however, it poses a
higher risk of adulteration and contamination.
The production of milk products, i.e. milk products including infant
milk food, malted food, condensed milk & cheese stood at 3.07 lakh MT in
2009. Production of milk powder including infant milk-food has risen to 2.25
lakh MT in 2009, whereas that of malted food is at 65000 MT. Cheese and
condensed milk production stands at 5000 and 11000 MT respectively in the
same year.
(Source: Annual Report 2009-2010, DFPI)
2.2. ABOUT CHOCOLATES
2.2.1. History of chocolate:
The earliest record of chocolate was over fifteen hundred years ago in
the central.America rain forests, where the tropical mix of high rain fall
combined with high year round temperatures and humidity provide the ideal
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climate for cultivation of the plant from which chocolate is derived, the cacao
tree.
“ Chocolate is made from the cocoa bean, found in pods growing from the
trunk and lower branches of the cacao tree, Latin name “ theobroma cacao”
meaning “ food of the gods”
Cacao was corrupted into the more familiar “ cocoa” by the early European
explorers. The Maya brewed a spicy, bittersweet drink by roasting and
pounding the seeds of the cacao tree with maize and capsicum peppers and
letting the mixture ferment. This drink was reserved for use in ceremonies as
well as for drinking by the wealthy and religious elite; they also ate cacao
porridge.
The Aztecs, like the Mayans, also enjoyed cacao as a beverage
fermented from the raw beans, which again featured prominently in ritual and
as a luxury available only to the very wealthy. The Aztecs called this drink
xocolatl, the Spanish conquistadors found this almost impossible to pronounce
and so corrupted it to the easier “ chocolat” the English further changed this to
chocolate. The Aztec’s regarded chocolate as an aphrodisiac and their
emperor, Montezuma reputedly drank it fifty times a day from a golden goblet
and is quoted as saying of xocolatl: “ the divine drink, which builds up
resistance and fights fatigue. A cup of this precious drink permits a man to
walk for a whole day without food”
Chocolate in Europe
Xocolatl! or chocolat or chocolate as it became known, was brought to
Europe by Cortez, by this time the conquistadors had learned to make the drink
more palatable to European tastes by mixing the ground roasted beans with
sugar and vanilla ( a practice still continued today), thus offsetting the spicy
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bitterness of the brew the Aztec’s drank. The first chocolate factories opened
in Spain, where the dried fermented beans brought back from the new world
by the Spanish treasure fleets were roasted and ground, and by the early 17th
century chocolate powder – from which the European version of the drink was
made- was being exported to other parts of Europe. The Spanish kept the
source of the drink- the beans- a secret for many years, so successfully in fact,
that when English buccaneers boarded what they thought was a Spanish “
treasurer galleon” in 1579, only to find it loaded with what appeared to be “
dried sheep’s droppings, they burned the whole ship in frustration. If only they
had known, chocolate was so expensive at that time, that it was worth it’s
weight in silver ( if not gold), chocolate was treasure indeed !
Within a few years, the cocoa beverage made from the powder produced in
Spain had become popular throughout Europe, in the Spanish Netherlands,
Italy, France, Germany and – in about 1520 – it arrived in England.
The first chocolate house in England opened in London in 1657
followed rapidly by many others. Like the already well established coffee
houses, they were used as clubs where the wealthy and business community
met to smoke a clay pipe of tobacco, conduct business and socialize over a cup
of chocolate.
Back to the America’s
Event’s went full circle when English colonists carried chocolate (and
coffee) with them to England’s colonies in north America. Destined to become
the united states of America and Canada, they are now the worlds largest
consumers – by far – of both chocolate and coffee, consuming over half of the
words total production of chocolate alone.
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The Quakers
The Quakers were, and still are, a pacifist religious sect, an offshoot of
the puritans of English civil war and pilgrim fathers fame and a history of
chocolate would not be complete without mentioning their part in it. Some of
the most famous names in chocolate were Quakers, who for centuries held a
virtual monopoly of chocolate making in the English speaking world – fry,
Cadbury and row tree are probably the best known. Its probably before the
time of the English civil war between parliament and king Charles 1st that the
Quaker’s who evolved from the puritans, first began their historic association
with chocolate. Because of their pacifist religion, they were prohibited from
many normal business activities, so as an industrious people with a strong
belief in the work ethic (like the puritans), they involved themselves in food
related businesses and did very well. Baking was a common occupation for
them because bread was regarded as the biblical “staff of life”, and bakers in
England were the first to add chocolate to cakes so it would be a natural
progression for them to start making pure chocolate. They were also heavily
involved in breakfast cereals but that’s another story.
What is certain is that the fry, row tree and Cadbury families in England
among others, began chocolate making and in fact Joseph fry of fry &sons
(founded 1728 in Bristol, England) is credited with producing and selling the
world’s first chocolate bar. Fry’s have now all but disappeared (taken over by
Cadbury) and row tree have merged Swiss company nestle, to form the largest
chocolate manufacturer in the world. Cadbury have stayed with chocolate
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production and are now, if not quite the largest, probably one of the best-
known chocolate makers in the world.
Chocolate as we know it
The first mention of chocolate being eaten in solid form is when bakers
in England began adding cocoa powder to cakes in the mid 1600’s. Then in
1828 a Dutch chemist, Johannes van houten, invented a method of extracting
the bitter tasting fat or “cocoa butter” from the roasted ground beans, his aim
was to make the drink smoother and more palatable, however he unknowingly
paved the way for solid chocolate as we know it. Chocolate as we know it
today first appeared in 1847 when fry & sons of Bristol, England – mixed
sugar with cocoa powder and cocoa butter (made by the van houten process) to
produce the first solid chocolate bar then in1875 a Swiss manufacturer, Daniel
peters, found a way to combine (some would say improve, some would say
ruin) cocoa powder and cocoa butter with sugar and dried milk powder to
produce the first milk chocolate.
2.3. CHOCOLATE PRODUCTION
The cocoa-bean -- the heart of the sweetest delicacy in the world – is bitter!
This is why, up to the 18th century some native tribes ate only the sweetish
flesh of the cocoa fruit. They regarded the precious bean as waste or used it, as
was the case among the Aztecs, as a form of currency.
The Varieties
There are two quite different basic classifications of cocoa, under which
practically all varieties can be categorised: Criollo and Forastero cocoas. The
pure variety of the Criollo tree is found mainly in its native Equador and
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Venezuela. The seeds are of finer quality than those of the Forastero variety.
They have a particularly fine, mild aroma and are, therefore, used only in the
production of high-quality chocolate and for blending. However, Criollo cocoa
accounts for only 10% of the world crop. The remaining 90% is harvested
from trees of the Forastero family, with its many hybrids and varieties. The
main growing area is West Africa. The cocoa tree can flourish only in the
hottest regions of the world.
The Harvest
Immediately after harvesting, the fruit is treated to prevent it from
rotting. At fermentation sites either in the plantation or at, collecting points, the
fruit is opened.
Fermentation
The fermentation process is decisive in the production of high quality
raw cocoa. The technique varies depending on the growing region.
Drying
After fermentation, the raw cocoa still contains far too much water; in
fact about 60%. Most of this has to be removed. What could be more natural
than to spread the beans out to dry on the sun-soaked ground or on mats? After
a week or so, all but a small percentage of the water has evaporated.
Cleaning
Before the real processing begins, the raw cocoa is thoroughly cleaned
by passing through sieves, and by brushing. Finally, the last vestiges of wood,
jute fibres, sand and even the finest dust are extracted by powerful vacuum
equipment.
Roasting
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The subsequent roasting process is primarily designed to develop the
aroma. The entire roasting process, during which the air in the nearly 10 feet
high furnaces reaches a temperature of 130 °C, is carried out automatically.
Crushing and shelling
The roasted beans are now broken into medium sized pieces in the
crushing machine.
Blending
Before grinding, the crushed beans are weighed and blended according
to special recipes. The secret of every chocolate factory lies in the special
mixing ratios, which it has developed for different types of cocoa.
Grinding
The crushed cocoa beans, which are still fairly coarse are now pre-
ground by special milling equipment and then fed on to rollers where they are
ground into a fine paste. The heat generated by the resulting pressure and
friction causes the cocoa butter (approximately 50% of the bean) contained in
the beans to melt, producing a thick, liquid mixture.
This is dark brown in color with a characteristic, strong odour. During
cooling it gradually sets: this is the cocoa paste. At this point the production
process divides into two paths, but which soon join again. A part of the cocoa
paste is taken to large presses, which extract the cocoa butter. The other part
passes through various blending and refining processes, during which some of
the cocoa butter is added to it. The two paths have rejoined.
Cocoa Butter
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The cocoa butter has important functions. It not only forms part of every
recipe, but it also later gives the chocolate its fine structure, beautiful lustre
and delicate, attractive glaze.
Cocoa Powder
After the cocoa butter has left the press; cocoa cakes are left which still
contain a 10 to 20% proportion of fat depending on the intensity of
compression. These cakes are crushed again, ground to powder and finely
sifted in several stages and we obtain a dark, strongly aromatic powder, which
is excellent for the preparation of delicious drinks - cocoa. Cocoa paste, cocoa
butter, sugar and milk are the four basic ingredients for making chocolate.
Kneading
In the case of milk chocolate for example, the cocoa paste, cocoa butter,
powdered or condensed milk, sugar and flavouring - maybe vanilla - go into
the mixer, where they are pulverized and kneaded.
Rolling
Depending on the design of the rolling mills, three or five vertically
mounted steel rollers rotate in opposite directions. Under heavy pressure they
pulverise the tiny particles of cocoa and sugar down to a size of approx. 30
microns. (One micron is a thousandth part of a millimetre.)
Conching
But still the chocolate paste is not smooth enough to satisfy our palates.
But within two or three days all that will have been put right. For during this
period the chocolate paste will be refined to such an extent in the conches that
it will flatter even the most discriminating palate. Conches (from the Spanish
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word "concha", meaning a shell) is the name given to the troughs in which 100
to 1000 kilograms of chocolate paste at a time can be heated up to 80 °C and,
while being constantly stirred, is given a velvet smoothness by the addition of
certain amounts of cocoa butter.
2.4. CONSUMPTION OF CHOCOLATES IN INDIA
Chocolate consumption in India is extremely low. Per capita
consumption is around 160 gms in the urban areas, compared to 8-10kg in the
developed countries. In rural areas, it is even lower. Chocolates in India are
consumed as indulgence and not as a snack food. A strong volume growth was
witnessed in the early 90’s when Cadbury repositioned chocolates from
children to adult consumption. The biggest opportunity is likely to stem from
increasing the consumer base. Leading players like Cadbury and Nestle have
been attempting to do this by value for money offerings, which are affordable
to the masses.
2.5. MAJOR PLAYERS
2.5.1. CADBURY
The Cadbury story is a fascinating study of industrial and social
developments covering well over a century and a half. It shows how a small
family business developed into an international company combining the most
sophisticated technology with the highest standards of quality, technical skills
and innovational established by the founders.
A one-man business opened in 1824 by a young Quaker, John Cadbury,
in bull street Birmingham was to be the foundation of Cadbury limited, now
one of the work’s largest producer of chocolate.
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By 1831 the business had changed from a grocery shop and Cadbury
had become a manufacturer of drinking chocolate and cocoa. This was the star
of the Cadbury manufacturing business, as it is know today.
Now the leader in the UK confection market. Cadbury limited is confectionery
division, of a major force in the confectionery and soft drinks international
market.,
Quality has been the focus of the Cadbury business from the beginning
as generations have worked to produce chocolate with that very special taste,
smoothness and snap, so characteristics of Cadbury’s more forward to extend
their business by introducing Health drinks. Now Cadbury’s is the brown
drinks (Cocoa based) segment.
2.5.2NESTLE
Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey,
Switzerland and its first product was “Farine Lactée Nestlé”, an infant cereal
specially formulated by Henri Nestlé to provide and improve infant nutrition.
From its first historic merger with the Anglo-Swiss Condensed Milk Company
in 1905, Nestlé has grown to become the world’s largest and most diversified
food Company, and is about twice the size of its nearest competitor in the food
and beverage sector.
Nestlé’s trademark of birds in a nest, derived from Henri Nestlé’s
personal coat of arms, evokes the values upon which he founded his Company.
Namely, the values of security, maternity and affection, nature and
nourishment, family and tradition. Today, it is not only the central element of
Nestlé’s corporate identity but serves to define the Company’s products,
responsibilities, business practices, ethics and goals.
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In 2010, Nestlé had around 3,47,000 employees worldwide, operated
500 factories in approx. 100 countries and offered over 8,000 products to
millions of consumers universally. The Company’s transparent business
practices, pioneering environment policy and respect for the fundamental
values of different cultures have earned it an enviable place in the countries it
operates in. Nestlé’s activities contribute to and nurture the sustainable
economic development of people, communities and nations.
Above all, Nestlé is dedicated to bringing the joy of ‘Good Food, Good
Life’ to people throughout their lives, throughout the world.
2.5.3. AMULIn 1929, Peston Edul Polson established Polson Model Dairy at Anand
to manufacture butter, ghee and casein and in 1944, the Bombay Municipal
Corporation Milk Supply was inaugurated.
Monopoly rights were awarded to Polson for Procuring milk from Kaira.
Amul's genesis is linked to the freedom movement in India. Sardar
Vallabhbhai Patel, an eminent
Indian freedom fighter encouraged the dairy farmers from the Kaira
district in Gujarat to form a cooperative to counter the 'exploitatively' low
prices offered for their milk by the monopoly milk supplier of the area,
Polson's Dairy. The dairy farmers met in Samarkha (Kaira district, Gujarat) on
the 4th of January 1946.
Initially, when the Bombay government refused to deal with the
cooperative, the farmers called a strike. The government finally relented when
Bombay went without milk for a fortnight. The successful union registered
itself as the Kaira District Cooperative Milk Producers' Union Ltd.
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(KCMPUL), Anand, in Gujarat in December 1946. And so did GCMMF and
brand AMUL establish consequently.
COMPANY PROFILE- MILMA
Kerala Co-operative Milk Marketing Federation (KCMMF) popularly
called milma was established in April 1980 with its Head Office at
Thiruvananthapuram for the successful implementation of the Operation Flood
which is a dairy program me launched in 1970 under the aegis of National
Dairy Development Board (NDDB).
Operation Flood, otherwise known as white revolution is one of the
world’s largest rural development program. It has helped dairy farmers direct
their own development, placing control of the resources they create in their
own hands. According to this program a National Milk Grid links milk
producers throughout India with consumers in over 700 towns and cities
reducing seasonal and regional price variation, while ensuring that the
producers gets a major share of the consumer’s rupee. The bedrock operation
flood has been village milk producer’s co-operative which produces milk and
provide inputs and services, making modern management and technology
available to members. Kerala was introduced ill the operation flood project
during the second phase (1980-1987). The eight southern districts from
Trivandrum to Thrissur were included in the project area having a total layout
of 29 crores.
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These projects were based at Trivandrum regional co-operative milk
producers union (TRCMPU) and Ernakulam regional co-operative milk
producers union (ERCMPU) formed in 1985. The third union via Malappuram
regional co-operative milk producers union (MRCMPU) was formed in 1986.
Main Milma products
The name of milma and its motto Your Health is Our Concern, has
become synonymous with assured quality. This is amply proved by the fact of
all its products mainly Ghee, selling solely under the trade name of MILMA.
Milma has a range of products from wholesome Pasteurized Milk to Pure,
Ghee Creamy Butter, and Nourishing Sterilized Flavored milk and Ice-
crèmes .All the products strictly adhere to the PFA rule and are sent to the
market only after stringent quality checking etc.
Pasteurized milk
Milma is marketing liquid milk in pasteurized from only. There is
variety in terms of fat content in the pasteurized milma milk. They are Toned
milk which contains 3.0% fat and 8.5% other minerals, Standardized milk
which has high fat content- and another type in which fat is totally removed.
Pasteurized milk is available in 500ml and 1 liter sachets.
Ghee
Milma’s ghee is produced from either crème or butter. Milma is now
marketing ghee in different packs from 50gm to 15kg.
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Butter
Milma’s butter is prepared from crème separated from milk, Milam’s
butter contains 81%fat and below 15.6% water content. It is distributed in pack
size from 100gm to 500gm.
Ice-cream
Milma’s Ice-cream now available in Vanilla, Chocolate, Mango and
Strawberry flavours.
Flavoured milk
There is flavored milk available both in Tetra packs and carry home
bottle .The flavours such as Cardamom Pineapple Mango and Strawberry etc
are marketed by milma. A mango drink under the name Refresh is also a
product of milma in tetra packs. These products can be kept without damage
for a period of 6 months.
Dairy whitener
Dairy whitener is a partially skimmed dry milk powder which is easily
soluble in both cold and hot water. It is used as a tea/coffee whitener and
quality curd can be made out of it.
Curd
Milma sells skimmed milk curd in 500ml sachets which is well accepted
by the customers.
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Sambharam
Sambharam or buttermilk is an instant thirst quencher sold by milma in 200ml
sachets.
Milma cattle feed
Milma now producing 500MT cattle feed a day. It is distributed at a
very reasonable rate through the Anand Pattern Co-operative Societies and
Dealers.
National Dairy Development Boar
NDDB, under Dr.V.Kurien’s guidance set up KCMMF in 1980. Ever
since then, there a very close co-operative between NDDB and the Federation.
NDDB are the originators of the Operation Flood Program and had been the
funding agent for the Operation Flood project in Kerala.
Amul
The Dairy Co-operative of Gujarat has been the inspiration for the
development of such a vast network of dairy co-operatives in Kerala. Among
the co-operatives in Gujarat, Kaira District Co-operative.
The name milma represents
2,608 primary milk co-operative societies.
7.33 lakhs farmers’ members.
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Three Regional Co-operative Milk Producer’s Union.
Fourteen Milk Chilling centers.
Two cattle feed plants with cumulative capacity of 500 MT.
One Milk Power Plant of 10 MT per day capacity.
A well established Training Centers.
5000 retail outlets.
Mission of Milma
“Farmer’s prosperity through consumer’s satisfaction”.
Objectives of Milma
To channelise marketable surplus milk from the rural areas to urban
deficit areas to maximize the returns to the producer and provide quality
milk and milk product to the consumers.
To carryout activities for promoting production, procurement,
processing and milk and milk products for economy development of the
farming community.
To build up a viable dairy industry in the state.
To provide constant market and stable price to the dairy farmers of their
products.
Government of Kerala
The phenomenal success of Dairy Co-operative in Kerala could not have been
achieved without the foundation of Animal Husbandry Department, dairy
development Department and Kerala Livestock Development Board, of the
Government of Kerala.
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Milma –The Farmers Organization
Milma is an organization of farmers. They are the producers of the raw
materials milk the shareholders in the organization and the Chairman and
Board of Director are elected from among them.
The Farmers are members of the APCOS (Anand Pattern Co-operative
Societies).The president of the APCOS from the General Body of the Regional
Milk Unions, which Federation to from KCMMF.
Procurement of milk
First and foremost, milma provides assured milk market and procures
milk from even the remotest societies, twice a day the milk collection trucks
go to the societies and collect milk. In areas which are not accessible by road
other means of collection are employed.
Veterinary service
Veterinary services are the most popular component of input activities;
the veterinary wing operates two types of veterinary routes regular and
emergency.
Cattle Feed Plant
Balanced cattle feed is the major centralized input provided to the dairy
farmers of the state from the federation .There are a high level of acceptability
for this product in the market.
Training Center
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In keeping with the ideology of placing the instruments of progress in
the hands of the farmers themselves. An orientation program is offered to the
farmers to equip them with the basic and fundamentals of co-operatives,
accounting, testing, laws etc. A full-fledged training center is functioning at
Trichur.
Regional Milk Co-operative unions
In order to affect efficiency and expedite the process procurement and
marketing, KCMMF has three Regional Co-operative Milk producers Unions
in Kerala TRCMPU, ERCMPU, and MRCMPU. These three unions cover the
northern central and southern regions of the state respectively. These divisions
have helped to decentralize and democratize the functioning of the
organization.
Role of competitors in the milk market
Majority of the milk market remains with co-operative which was formed
under operation flood all over India. The milk marketing federations and its
affiliated districts milk unions control majority of the milk market in the
organized sector.
AMUL
MILMA
MOTHER ADAIRY
VERKA
NANDINI
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VIJAYA
ARVIN
PARAG, ETC.
There are few major private companies which are in the forefront of dairy
product marketing such as Britania, Cadbury’s, and Nestle etc. New
international players such as Anchor, Fronteero, Compine, Landolakers etc, are
expected to enter in India market very soon either directly or through joint
ventures.
The change in retail formats and opening of big retail malls like Reliance,
Bharati wall, Trinetra etc. has started the concept of store branding.
Coming to Kerala milma still enjoys a near monopoly in the organized milk
marketing. However there are 35 to 40 brands of packaged milk being sold in
Kerala.
Some of the brands are Penta, Cowma, Balaji, Kairali, Royal, Ambadi etc.
Few charitable organizations such as PDDP, MALANADU etc, are also
having their presence in the milk market. Most of the private brands of milk
are bringing milk from other states and sell it in Kerala Through there are large
number of brands the share of each of these brands are too small. Altogether
these private brands sell around 3 lakhs liters of milk per day. In the dairy
product category all the multinational brands are available.
The total estimated milk consumptions in the state are around 85 lakhs per
day. The organized sector caters to approximately 13 lakhs liters per day.
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The remaining is completely under un organized sector especially
household sales, own consumptions sale by cycle vendors etc.
Milma’s social responsibility and Plan of Milma
Milma being a framers organization catering to lakhs of milk consumer
in the state has the twin responsibility of ensuring regular market and
reasonable price to lakhs of consumer in the state at reasonable price. Milma
has successfully carrying out this social responsibility in the last few decades-
Milma’s dream is to ensure prosperity through Milk be it for the
producer or for the consumer. Milma look forward to a bright future for this
farmer’s organization and reiterate Milma’ s resolve to strive relentlessly to
make this a full-fledged co-operative of the farmers who would grow along
with the organization.
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CHAPTER III
LITERATURE SURVEY
Marketing is typically seen as the task of creating, promoting and
delivering goods and services to consumers and business. According to Duddy
and Revzan, “Marketing is the economic process by which goods and services
are exchanged and their values determined in terms of money prices”.
Traditionally a market was a physical place where buyers and sellers gathered
to exchange goods.
The term ‘market’ is derived from the Latin word “Marcatus” which
means “Merchandise”, trade or a place where actual buying and selling take
place or where buyers and sellers personally meet together to effect purchase
and sales. This clearly means that a market is a geographical area where
commodities are exposed for sale. Market is the sum total of the situation or
environment in which the resources, activities, attitudes of the buyers and
sellers, affect the sale for the product in a given area.
Economists now describe a market as a collection of buyers and sellers
who transact over particular product or product class. But the marketers view
the sellers as constituting the industry and the buyers as constituting the
market. Now a days, the market has become buyers market. In the new sense,
marketing means satisfaction of consumer needs.
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To apply marketing concept, an organization must meet three basic
needs. First, it must truly believe in the customer’s importance. All marketing
activities are focused on providing satisfaction on the customers. Second,
marketing efforts must be integrated, specific and measurable goals should be
set; all marketing activities should be co-ordinated. Finally, management must
accept the assumption that profit goals will be reached through satisfied
customers.
Key assumptions of the marketing concept
Brand positioning and overall customer attitude:
Branding:
A brand is a name, term, symbol or design or a combination of them which is
intended to identify the goods or services of one seller or group of sellers and
to difference them from those of the competitors.
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Branding refers to decisions about names, including brands, brand names,
brand marks and trade marks. A brand name is the part of a rand that can be
verbalized; it includes letters word and numbers. A brand name is sometimes a
product’s only distinguishing characteristics. A brand mark is a symbol, design
or other element of brand that cannot be spoken. When a brand name or brand
mark is registered and legalized. It becomes a trade mark.
Advantages of branding (Consumers)
a) When a product is distinguishable by its brand, consumer has an
assurance of quality and consistency in the products attributes being
offered.
b) Certain brands provide status and prestige to consumers, which endow
them, a some what conspicuous psychological satisfaction otherwise not
normally available.
c) These are a considerable saving of time and energy in shopping for
goods because a brand renders product identification much better.
d) Price of ranted goods is uniform throughout the country.
Disadvantages:
a) Popularity of brand renders them out of the common man’s reaches
because they command a premium price.
b) Brand royalty helps save time and energy in product selection but it
discharges the consumer from trying out other new brands, which may
possibly be more satisfying.
c) Quality is not assured under all circumstances.
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Important functions of branding are below:
1) It helps in product identification and gives “distinctive” to product.
2) Indirectly it indicates the quality or standard of the product.
3) It eliminates the imitation of the product.
4) It ensures legal right on the product.
5) It helps in advertising and packing activities.
6) It helps to create and sustain brand loyalty to particular product.
7) It helps in price differentiation of the products.
Brand Positioning:
Brand positioning refers to “target consumer’s” reason to buy your
brand in preference to others. It is ensures that all brand activity has a
common aim; is guided, directed and delivered by the brand’s benefits/reasons
to buy; and it focuses at all points of contact with the consumer.
Brand positioning must make sure that:
Is it unique/distinctive vs. competitors?
Is it significant and encouraging to the niche market?
Is it appropriate to all major geographic markets and businesses?
Is the proposition validated with unique, appropriate and original
products?
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Is it sustainable - can it be delivered constantly across all points of
contact with the consumer?
Is it helpful for organization to achieve its financial goals?
Is it able to support and boost up the organization?
In order to create a distinctive place in the market, a niche market has to be
carefully chosen and a differential advantage must be created in their mind.
Brand positioning is a medium through which an organization can portray its
customers what it wants to achieve for them and what it wants to mean to
them. Brand positioning forms customer’s views and opinions.
Brand Positioning can be defined as an activity of creating a brand offer in
such a manner that it occupies a distinctive place and value in the target
customer’s mind. For instance-Kodak Mahindra positions itself in the
customer’s mind as one entity- “Kotak ”- which can provide customized and
one-stop solution for all their financial services needs. It has an unaided top of
mind recall. It intends to stay with the proposition of “Think Investments,
Think Kotak”. The positioning you choose for your brand will be influenced
by the competitive stance you want to adopt.
Brand Positioning involves identifying and determining points of similarity
and difference to ascertain the right brand identity and to create a proper brand
image. Brand Positioning is the key of marketing strategy. A strong brand
positioning directs marketing strategy by explaining the brand details, the
uniqueness of brand and it’s similarity with the competitive brands, as well as
the reasons for buying and using that specific brand. Positioning is the base for
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developing and increasing the required knowledge and perceptions of the
customers. It is the single feature that sets your service apart from your
competitors. For instance- Kingfisher stands for youth and excitement. It
represents brand in full flight.
Customer’s attitude towards a particular brand:
The direct formation of attitudes is linked to the experiential perspective.
For forming attitude directly, the following elements are considered.
- Classical conditioning/associative learning--positive affect is attached to
object
- Mere exposure--frequent exposure to stimulus increases liking for it.
Derived from Butterfly effect.
- Moods--mood at the time of exposure to object influences feelings about
object.
There are three major factors that are predictive of attitudes. They are
Salient Beliefs
Strength of the Belief
Evaluation
There exist two types of influences regarding the consumer’s attitude. They
are internal and external influences.
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Internal influences:
Customer attitude is influenced by demographic factors, psychographic
factors, personality, motivation, knowledge, attitude, beliefs and feelings.
Customer attitude concerned with consumer need, consumer actions in the
direction of satisfying needs leads to thus behavior of every individual depend
on thinking process.
In simple terms attitude refers to what a person feels or believes about
something. Additionally, attitude may be reflected in how an individual acts
based on his or her beliefs. Once formed, attitudes can be very difficult to
change. Thus, if a consumer has a negative attitude toward a particular issue it
will take considerable effort to change what they believe to be true.
Marketers facing consumers who have a negative attitude toward their
product must work to identify the key issues shaping a consumer’s attitude
then adjust marketing decisions (e.g., advertising) in an effort to change the
attitude. For companies competing against strong rivals to whom loyal
consumers exhibit a positive attitude, an important strategy is to work to see
why consumers feel positive toward the competitor and then try to meet or beat
the competitor on these issues. Alternatively, a company can try to locate
customers who feel negatively toward the competitor and then increase
awareness among this group.
External influences:
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Customer attitude or consumer behaviour is influenced by culture, sub-
culture, locality, family, social class, reference group and marketing mix
factors.
It also includes perception and learning.
Perception:
It is a process of attaining awareness or understanding of sensory information.
Learning:
It is acquiring new knowledge, behaviour, skill, values, preferences or
understanding and may involve synthesizing different types of information.
The ability to learn is preceded by humans, animals and machines.
Marketing Research
Marketing research may be defined as the objective and systematic design,
collection, and analysis and reporting of data and findings relevant to a specific
marketing situation facing the company.
According to G.B Giles, “Marketing research may be defined as the objective
and systematic collection, recording analysis, and interpretation and reporting
of information about-
Existing potential markets
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Marketing strategies and tactics
Interaction between markets
Marketing methods and
Current or potential products or services.
Scope of Marketing Research
The marketing research aids the marketers in ascertaining various factors.
Some of them are,
1. Aids in manufacturing by of aids the manufacturers in product
planning, product pricing etc.
2. Aids in the distribution of the product through ascertainment
market conditions, understanding the market policies and
strategies etc.
Marketing research process:
The following are the different steps in marketing research.
1. Define the problem and research objectives.
The researcher must know what the management wants him to do. So the
problem must be defined carefully and precisely. The research objectives are
also to be set out in this page.
2. Develop the research plan.
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The second stage of marketing research calls for developing the most efficient
plan for gathering the needed information. The cost of plan also specified in
this stage.
3. Collect the information.
This is the most expensive phase in marketing research. The data may be
collected through survey method, interviews etc. The data may be collected by
way of primary data collection or secondary data collection.
4. Analyze the information.
It is the important stage in the research process. Correct analysis and
interpretation of the data makes the research meaningful and purposeful.
Various statistical tools may be used for the research analysis. So investor
should have an adequate knowledge of various techniques like correlation,
measures of central tendency, averages etc are a must.
5. Present the findings
At the last step, the research should present findings that are relevant to the
major marketing decisions facing management.
6. Make the decision.
The manager knows that the findings could suffer from variety of errors. If
their confidence is low they may decide against the research findings. They
may even decide to conduct a further study.
Limitations of marketing research.
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1. Marketing research cannot predict future market behaviour accurately in
many areas. In fact, many predictions go wrong and become untrue.
2. Lack of qualified personnel is another problem related to market research.
3. Marketing research using the technique of science, but it itself is not an
exact science, therefore the result obtained are not very accurate as
compared to physical and chemical science.
4. Market research is carried out in open market place where so many
variables are acting on the research setting. It is not comparable to the
controlled laboratory situation as available in physical and other exact
science.
5. Marketing research is carried out on consumers, dealers etc who are
human beings. Human beings have a tendency to behave artificially when
they know that they are being observed, so the attitudes, opinion, believes
etc are being studied. This aspect of human behaviours distorts the market
research results.
6. The marketing research projects take generally long period than other
ones. The time by which the research results are represented market
situations also undergoes changes. Hence the time gap affects the
successful implementation of research results.
7. Relatively a few business personal are competent to undertake research
projects.
8. Lack of appropriate training to search leads to misrepresentation of data
collection.
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9. In India, research is taken as time wasting and resource wasting activity.
Time and money remain the major limitations worth mentioning in all
sorts of marketing research studies. This discourages the researches and
in term them do not give their to the organization.
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CHAPTER IV
ANALYSIS AND INTERPRETATION
4.1. LOCATION OF THE RESPONDENTS
4.1.1. TABLE -LOCATION OF THE RESPONDENTS
LOCATION Rural Urban TOTAL
NO. OF RESPONDENTS 36 64 100
PERCENTAGE 36% 64% 100%
4.1.2. FIGURE - LOCATION OF THE RESPONDENTS
Inference:
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The table above shows the location to which the respondents belong. In the above analysis it is shown that 82% of respondents belong to urban area and 18% belong to rural area.
4.2. MODE OF PURCHASE
4.2.1. TABLE - MODE OF PURCHASE
MODE
Once in a
fortnight
DailyWeekl
yMonthl
yQuarterl
yTOTA
L
NO. OF RESPONDENTS
61 18 39 25 13 100
PERCENTAGE 61% 18% 39% 24% 13% 100
4.2.2. FIGURE - MODE OF PURCHASE
Inference:
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The above table shows that the majority (39%) of the respondents purchases chocolates in a weekly base.
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4.3. FORM OF CHOCOLATE LIKES TO CONSUME
4.3.1. TABLE - FORM OF CHOCOLATE LIKES TO CONSUME
ChoiceHard
Nutties
Crunchy
Chew
Others
Total
NO. OF RESPONDENTS
17 34 42 7 0 100
Percentage 17% 34% 42% 7% 0100%
4.3.2. FIGURE - FORM OF CHOCOLATE LIKES TO CONSUME
Inference:
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The above table shows that the 42% of the respondents like to consume crunchy chocolates, 34% like to consume Nutties, 17% like hard and the rest 7% of the respondents like to consume chewy chocolate.
4.4. SOURCE OF INFORMATION ABOUT THE MILMA CHOCOLATES
4.4.1. TABLE - SOURCE OF INFORMATION ABOUT THE MILMA CHOCOLATES
SOURCEAdvertise-
mentRetail-
ersMarketing executives
Friends/relatives
Others TOTAL
NO. OF RESPONDENT
S
24 45 0 23 8 100
PERCENTAGE
24% 45% 0 23% 8% 100%
4.4.2. FIGURE - SOURCE OF INFORMATION ABOUT THE MILMA CHOCOLATES
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Inference:
The above table shows that the majority (45%) of the respondents got information about the Milma chocolates from the retailers.
4.5. AMONG MILMA CHOCOLATES WHICH CHOCOLATE DID THE RESPONDENT MORE LIKE?
4.5.1. TABLE - AMONG MILMA CHOCOLATES WHICH CHOCOLATE DID THE RESPONDENT MORE LIKE?
ChoiceMilma
chocochat
White Éclair
s
Milky thunde
r
Chocobeats
Others
Total
NO. OF RESPONDENT
S23 34 19 15 9 100
Percentage 23% 34% 19% 15% 9%100%
4.5.2. FIGURE - AMONG MILMA CHOCOLATES WHICH CHOCOLATE DID THE RESPONDENT MORE LIKE?
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Inference:
From the above table, 34% of the respondents like White Éclairs, 23% like Milma chocochat, 19% like Milky Thunder, 15% like Chocobeats, and 9% of the respondents like other chocolates of Milma.
4.6. REASON FOR PURCHASING MILMA CHOCOLATES
4.6.1. TABLE - REASON FOR PURCHASING MILMA CHOCOLATES
Reason Taste Brand name
Low price
Quality Others Total
NO. OF RESPONDENTS
47 22 17 21 9 100
Total 47% 22% 17% 21% 9% 100%
4.6.2. FIGURE- REASON FOR PURCHASING MILMA CHOCOLATES
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Inference:
From the above table shows, 47% of the respondents are opinioned that taste is the main reason for purchasing Milma chocolates, 22% of the respondents prefer to purchase Milma chocolates because of its brand name, 21% purchase Milma because of quality, 17% are opinioned that low price as the reason for purchasing, and 9% of the customers have other reasons to purchase Milma chocolates.
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4.7. SATISFACTION LEVEL OF THE CUSTOMERS
4.7.1. TABLE - SATISFACTION LEVEL OF THE CUSTOMERS
Opinion Highly Satisfied
Satisfied
Highly Dissatisfied
Dissatisfied
No opinion
Total
No. Of respondents
14 77 1 2 6 100
Total 14% 77% 1% 2% 6% 100%
Source: Primary data
4.7.2. Figure - SATISFACTION LEVEL OF THE CUSTOMERS
Interference:
The above table shows that majority(77%) of the respondents are satisfied with using Milma chocolates, 14% of the respondents are highly satisfied, 2% are dissatisfied and 1% are highly dissatisfied in using Milma chocolates.
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4.8. BRANDS OF CHOCOLATES USED OTHER THAN MILMA
4.8.1. TABLE - BRANDS OF CHOCOLATES USED OTHER THAN MILMA
Brands Cadbury Nestlé Lotte Mars Others Total
No. Of respondents
47 31 7 15 0 100
Percentage 47% 31% 7% 15% 0% 100%
4.8.2. Figure - BRANDS OF CHOCOLATES USED OTHER THAN MILMA
Inference:
The above table shows that the chocolates respondents use other than Milma. 47% of the respondents use Cadbury, 31% use Nestle, 15% use mars and 7% are using Lotte chocolates.
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4.9. RESPONDENT’S OPINION ABOUT REASONABLE PRICE OF THE CHOCOLATES
4.9.1. TABLE - RESPONDENT’S OPINION ABOUT REASONABLE PRICE OF THE CHOCOLATES
Price Below 5 5-10 10-15 15-20 20-Above
Total
No. Of respondents 12 43 30 13 2 100
Percentage 12% 43% 30% 13% 2% 100%
4.9.2. FIGURE - RESPONDENT’S OPINION ABOUT REASONABLE PRICE OF THE CHOCOLATES
Inference:
From the above table, it is clear that most (43%) of the customers are opinioned that the reasonable price of the chocolate products is 5-10 rupees, 30% of the respondents are of the opinion that the reasonable price of chocolates is between 10-15 Rupees.
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4.10. RESPONDENT OPINION ABOUT THE CURRENT PRICE OF MILMA CHOCOLATES
4.10.1. TABLE - RESPONDENT OPINION ABOUT THE CURRENT PRICE OF MILMA CHOCOLATES
Opinion Excellent Good Average Bad Very Bad Total
No. Of respondents 52 23 16 9 0 100
Percentage 52% 23% 16% 9% 0 100%
4.10.2. FIGURE - RESPONDENT OPINION ABOUT THE CURRENT PRICE OF MILMA CHOCOLATES
Inference:
The above table shows the customers opinion about the current price of the Milma chocolate products. From the 100 respondents, majority (52%) of the total respondents are opinioned that the current price of Milma chocolates is excellent.
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4.11. RESPONDENT OPINION ABOUT THE AVAILABILITY OF MILMA PRODUCTS IN THE STORES
4.11.1. TABLE - RESPONDENT OPINION ABOUT THE AVAILABILITY OF MILMA PRODUCTS IN THE STORES
Availability Excellent Good Average Bad Very Bad Total
No. Of respondents 2 8 53 24 13 100
Percentage 2% 8% 53% 24% 13% 100%
4.11.2. FIGURE - RESPONDENT OPINION ABOUT THE AVAILABILITY OF MILMA PRODUCTS IN THE STORES
Inference:
The above table shows the availability of Milma products in the stores. 53% of the total respondents are having the opinion that the availability of Milma products is average, 24% are of the opinion that the availability of Milma products is bad.
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4.12. RESPONDENT OPINION ABOUT THE POPULARITY OF THE PRODUCT
4.12.1. TABLE - RESPONDENT OPINION ABOUT THE POPULARITY OF THE PRODUCT
Popularity Excellent Good Average Bad Very Bad Total
No. Of respondents 11 20 37 23 9 100
Percentage 11% 20% 37% 23% 9% 100%
4.12.2. FIGURE - RESPONDENT OPINION ABOUT THE POPULARITY OF THE PRODUCT
Inference:
The above table shows about the popularity of the chocolate products of Milma, 37% of the respondents are opinioned that it have an average popularity, 23% are opinioned that popularity is bad.
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4.13. RESPONDENT OPINION ABOUT THE BRAND NAME
4.13.1. TABLE - RESPONDENT OPINION ABOUT THE BRAND NAME
Choice Excellent Good Average Bad Very Bad
Total
No. Of respondents 26 43 31 0 0 100
Percentage 26% 43% 31% 0 0 100%
4.13.2. FIGURE - RESPONDENT OPINION ABOUT THE BRAND NAME
Inference:
The above table shows that 43% of the total respondents are of the opinion that brand name of Milma is good, 31% are opinion that the Milma is having an average brand, 26% of the respondents are of the opinion that the brand name of Milma is excellent.
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4.14. RESPONDENT OPINION ABOUT THE QUALITY OF MILMA CHOCOLATES
4.14.1. TABLE - RESPONDENT OPINION ABOUT THE QUALITY OF MILMA CHOCOLATES
Choice Excellent Good Average Bad Very Bad
Total
No. Of Respondents
26 41 33 0 0 100
Percentage 26% 41% 33% 0 0 100%
4.14.2. FIGURE - RESPONDENT OPINION ABOUT THE QUALITY OF MILMA CHOCOLATES
Inference:
The table above shows the quality of the Milma chocolates, here 41%
are having good opinion regarding the quality of the products, 33% have an
average opinion about the quality and 26% have an excellent opinion regarding
the quality of the Milma chocolates.
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4.15. TO SHOW THE DEGREE OF CORRELATION BETWEEN THE
MALE AND FEMALE RESPONDENTS AND THE TASTE OF
MILMA CHOCOLATES
4.15.1. TABLE - TO SHOW THE DEGREE OF CORRELATION BETWEEN THE MALE AND FEMALE
RESPONDENTS AND THE TASTE OF MILMA CHOCOLATES
Choice X Rx Y Ry D = Rx- Ry D2
Excellent 10 2 40 1 1 1
Good 40 1 10 2 -1 1
Average 0 0 0 0 0 0
Bad 0 0 0 0 0 0
Very bad 0 0 0 0 0 0
D2 = 2
Where X = Male respondents
R = 1 - Rx = Ranks of male respondents
Here N = 5, D2 = 2 Y = Female respondents
R = 1 - Ry = Ranks of female respondents
R = 0.9
The coefficient or rank correlation states that the responses of male and
female are positively correlated. That is, the opinions regarding the taste of
milma chocolates are somewhat similar, ie, there exists a positive correlation.
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4.16. RESPONDENT OPINION ABOUT THE PACKAGING OF THE MILMA CHOCOLATES
4.16.1. TABLE - RESPONDENT OPINION ABOUT THE PACKAGING OF THE MILMA CHOCOLATES
Choice Excellent Good Average Bad Very Bad
Total
No. Of Respondents
3 33 48 16 0 100
Percentage 3% 33% 48% 16% 0 100%
4.16.1. FIGURE - RESPONDENT OPINION ABOUT THE PACKAGING OF THE MILMA CHOCOLATES
Inference:
The table above deals with the packing of the Milma chocolates, here it is clearly understood that 48% of the respondents are having an average opinion regarding the packing of the Milma chocolates.
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4.17. CHI-SQUARE TEST
THE PACKING OF THE CHOCOLATES MAKE ANY INFLUENCE
ON THE SALES OF THE CHOCOLATES
Strongly agree
AgreeStrongly disagree
DisagreeNo
opinionTotal
Male 10 38 0 2 0 50
(%) 20 76 0 4 0 100
Female 28 22 0 0 0 50
(%) 56 44 0 0 0 100
Total 38 60 0 2 0 100
H0 : Packing is do not make any influence on the sales of the
chocolates.
H1 : packing influence on the sales of the chocolates.
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EXPECTED FREQUENCY
Male Female
O E O E
Strongly agree 10 19 28 19
Agree 38 30 22 30
Strongly disagree 0 0 0 0
Disagree 2 1 0 1
No opinion 0 0 0 0
Calculated value of X2 = 14.8
Degree of freedom = 4
Table value of X2 = 9.488 (at 5% level of significance)
Decision
From the above analysis, the calculated value of X2 is greater than the table value and hence, the null hypothesis is rejected. So there is an influence of packing on sales of the products.
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4.18. RESPONDENT OPINION ABOUT THE PRESENT ADVERTISEMENT OF MILMA CHOCOLATES
4.18.1. TABLE - RESPONDENT OPINION ABOUT THE PRESENT ADVERTISEMENT OF MILMA CHOCOLATES
Choice Excellent Good Average Bad Very Bad
Total
No. Of Respondents
3 33 48 16 0 100
Percentage 3% 33% 48% 16% 0 100%
4.18.2. FIGURE - RESPONDENT OPINION ABOUT THE PRESENT ADVERTISEMENT OF MILMA CHOCOLATES
Inference:
The table above deals with the advertisement of the Milma chocolates, here it is clearly understood that 41% of the respondents are having an average opinion regarding the advertisement of the Milma .
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4.19. CHI-SQUARE TEST
ADVERTISEMENT IS A METHOD FOR CREATING DEMAND AND
POPULARITY
Strongly agree
AgreeStrongly disagree
DisagreeNo
opinionTotal
Male 10 30 8 0 2 50
(%) 20 60 16 0 4 100
Female 25 15 6 0 4 50
(%) 50 30 12 0 8 100
Total 35 45 14 0 6 100
H0 : Advertisement is not a method for creating demand and popularity
H1 : Advertisement is a method for creating demand and popularity
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Expected Frequency
Male Female
O E O E
Strongly agree 10 17.5 25 17.5
Agree 30 22.5 15 22.5
Strongly disagree 8 7 6 7
Disagree 0 0 0 0
No opinion 2 3 4 3
Calculated value of X2 = 12.38
Degree of freedom = 4
Table value of X2 = 9.488 (at 5% level of significance)
Decision
From the above analysis the calculated value of X2 in greater than the
table value and hence the null hypothesis is rejected. So advertisement affects
the demand and popularity of the products.
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4.20. THERE IS A NEED FOR ACTION ORIENTED ADVERTISEMENT IS REQUIRED FOR BUILDING A BRAND
IMAGE
4.20.1. TABLE - THERE IS A NEED FOR ACTION ORIENTED ADVERTISEMENT IS REQUIRED FOR BUILDING A BRAND
IMAGE
Choice Strongly agree
Agree Neutral DisagreeStrongly disagree
Total
No. Of Respondents
68 21 10 1 0 100
Percentage 68% 21% 10% 1% 0 100%
4.20.2. FIGURE - THERE IS A NEED FOR ACTION ORIENTED ADVERTISEMENT IS REQUIRED FOR BUILDING A BRAND
IMAGE
Inference:
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The above table shows that 68% of the total respondents are of the opinion that action oriented advertisement are required for building up a brand image.
4.21.RESPONDENT OPINION ABOUT THE PRESENT DEMAND OF MILMA CHOCOLATES
4.21.1. RESPONDENT OPINION ABOUT THE PRESENT DEMAND OF MILMA CHOCOLATES
Choice Highly demanded
Demanded MediumPoor
demand
Very poor
demand
Total
No. Of Respondents
1 20 41 26 12 100
Percentage 1% 20% 41% 26% 12% 100%
4.21.2. RESPONDENT OPINION ABOUT THE PRESENT DEMAND OF MILMA CHOCOLATES
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Inference
The table above shows the present demand of the Milma chocolates,
here 41% are having medium opinion regarding the demand of the products.
4.22. RESPONDENT OPINION ABOUT THE MAJOR COMPETITORS OF MILMA CHOCOLATES
4.22.1. TABLE - RESPONDENT OPINION ABOUT THE MAJOR COMPETITORS OF MILMA CHOCOLATES
Choice Nestley Cadbury Lotte Mars Others Total
No. Of Respondents
35 44 8 11 2 100
Percentage 35% 44% 8% 11% 2% 100%
4.22.2. FIGURE - RESPONDENT OPINION ABOUT THE MAJOR COMPETITORS OF MILMA CHOCOLATES
Inference:
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The above table shows that the competitors of Milma chocolates here 44% are of the opinion that Cadbury is the major competitors of Milma, 35% are of the opinion that nestle is the major competitors of Milma, 22% are of the opinion that mars is the major competitors of Milma chocolates.
TABLE NO. 21
4.23. RESPONDENT OPINION ABOUT THE FACTORS THAT MILMA DIFFER FROM OTHERS
4.23.1. TABLE - RESPONDENT OPINION ABOUT THE FACTORS THAT MILMA DIFFER FROM OTHERS
Choice Trust worthy
Brand image
Products Goodwill Others Total
No. Of Respondents
39 14 9 25 13 100
Percentage 39% 14% 9% 25% 13% 100%
4.23.2. FIGURE - RESPONDENT OPINION ABOUT THE FACTORS THAT MILMA DIFFER FROM OTHERS
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Inference:
The table shows the factors that differs Milma from others, here 39%of the respondents are giving the opinion that trust worthy is the main factors that make Milma products different from others
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CHAPTER VI
FINDINGS SUGGESTIONS AND CONCLUSION
Findings
1. Majority of the respondents purchases chocolates in a weekly base.
2. Majority of the respondents like to consume crunchy chocolates.
3. Majority of the respondents got information about the Milma chocolates
from the retailers
4. Most of the respondents like White Éclairs
5. Majority of the respondents are opinioned that taste is the main reason
for purchasing Milma chocolates.
6. Majority(77%) of the respondents are satisfied with using Milma
chocolates,
7. Majority of the respondents use Cadbury
8. Most (43%) of the customers are opinioned that the reasonable price of
the chocolate products is 5-10 rupees,
9. Majority (52%) of the total respondents are opinioned that the current
price of Milma chocolates is excellent
10.Most of the total respondents are having the opinion that the availability
of Milma products is average, 24% are of the opinion that the
availability of
11.Majority of the respondents are opinioned that it have an average
popularity
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12.Majority of the total respondents are of the opinion that brand name of
Milma is good
13.Most of the respondents are having good opinion regarding the quality
of the products.
14.Majority of the respondents are having an average opinion regarding the
packing of the Milma chocolates
15.It is found out that there is an influence of packing on sales of the
products.
16.Majority of the respondents are having an average opinion regarding the
advertisement of the Milma chocolates
17.Advertisement affects the demand and popularity of the products.
18.Majority of the total respondents are of the opinion that action oriented
advertisement are required for building up a brand image,
19.Most are having medium opinion regarding the demand of the products
20.Most of the respondents are of the opinion that Cadbury is the major
competitors of Milma
21.Majority of the respondents are giving the opinion that trust worthy is
the main factors that make Milma products different from others
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Suggestions
1. The company should indulge in giving more advertisement to attract
customers.
2. Mostly the chocolates are attracted by children’s, So the company
should focus on such kinds of customers.
3. The company should improve the quality of the products.
4. The company should produce variety of products to attract the peer
group.
5. The company should increases distribution channel of Milma chocolates
to increase the sales and demand of the product.
6. More attractive designs and packing should be introduced by the
company.
7. Regular advertisement on TV should be given. Hoardings and other
methods of advertisement should be introduced by the company for
increasing the sales.
8. Attractive promotional offers should be given by the company to attract
more customers.
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Conclusion
Chocolates are a weakness not only to the children but for everyone.
That is why most of the chocolate companies are flourishing in the market. It
mainly depends on the taste of the product. Here in our country the major
producers of chocolates are the Cadbury, Nestle, Mars etc. so it is difficult for
a new industry to flourish in the market.
Milma is an existing industry in milk products but the market is limited
to Kerala. The major aim of the company is to increase the market to a higher
range. From the analysis done its is found that the Milma chocolates is not
having much popularity among the customers. The main reason for this is that
it is not having a good marketing strategy and the competition is also high, the
company should enlarge the market and should take necessary steps to get into
the market of chocolates and to compete with the chocolate giants.
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BIBLIOGRAPHY
Books:-
1. Kotler Philip, “Marketing management”, Prentice-Hall of India Pvt Ltd,
New Delhi, 8th e.d., 2006.
2. Kothari C.R, “Research Methodology”, New Age International(P) Ltd,
New Delhi,2nd e.d., 2007.
3. Schoell F William & Guiltinan P Joseph, “Marketing: Contemporary
Concepts & Practices”, 5th e.d., 2006.
4. Periodicals, Magazines, Notices, Brochures, Books etc, of the Company
5. Joshi R.L., Manoria C.B, Principles and practices of marketing in India,