Milma Project123

LIST OF CONTENTS

CHAPTER TITLE PAGE NO.Chapter 1 Introduction

General introductionCompany profileThe projectStatement of the problemObjectives of the studyPrimarySecodaryResearch MethodologyResearch approachData sourcesPrimary dataSecodary dataResearch instrumentSampling planSampling unitSample sizeSampling procedureContact methodTools used for analysisProject periodLimitation of the study

Chapter 2 Theoretical review

Chapter 3&4 Data analysis and discussionsChapter 5 Findings, recommendation &

conclusionsFindingsRecommendationConclusionsAppendices

BibliographyGlossary

1. Introduction

1.1. General Introduction

Marketing is an important stage on the modernized productions and distribution. It

has a special significance in the modern management of business and industry. It is one of

the important management concepts, unless it is properly under stood and put into practice in

the right use. Many of the business or industrial enterprise will collapse or prove failure.

Marketing is so basic that it is not enough to have strong sales department and entrust

marketing to it:

a) The business decision must be consumer oriented.

b) Marketing must increase profit.

c) Marketing must be dynamic in process.

The major purpose of marketing is to satisfy human needs by delivering

products of various types to buyers when and where they want them and at a reasonable

price. Product available at right time will make customer satisfied. Customers satisfaction is a

person’s feelings of pleasure or disappointment resulting from comparing a product’s

perceived performance with the performance he expects of it. Complete customer satisfaction

is achieved by understanding customer requirements And delivering superior quality goods

and services.

The modern marketer is called upon to set the marketing objectives, develop the

marketing plan, organize the ,marketing function, implement the marketing plan or

programme (marketing mix) and control the marketing programme to ensure the

accomplishment of the set marketing objectives. The marketing programme covers producer

planning or merchandising, price, promotion and distribution.

In short, modern marketing begins with the customer, not with production cost, sales,

technological landmarks and it ends with the customer satisfaction and social well-being.

Under the market- driven economy buyer or customer is the boss.

Marketing has been viewed as an ongoing or dynamic process involving a set of

interacting activities dealing with a market offering by producers to consumers on the basis

of reliable marketing anticipation.

Marketing is a matching process by which a process by which a producer provides a

marketing mix that meets consumer demands of a target markets within the limits of society.

The process is based on corporate goals and corporate capabilities. Marketing process brings

together producers and consumers the two main participants in exchange.

Each producer or seller has certain goals and capabilities in making and marketing his

products. He uses marketing research as a tool to anticipate market demand. Then he provides

a marketing mix in order to capitalize marketing opportunity. An exchange or a transaction

takes when market offering is acceptable to the customer who is prepared to give something

value return against the product so bought.

In modern market competition is increasing day by day. Therefore companies are

required to give quality product to customers at reasonable price. Today products are sourced

from different parts of the world, assembled at different location, and shipped to various

destination to ensure greater customer satisfaction and squeeze out un productive time and

cost from the supply chain cycle. These trends have resulted in numerous marketing

opportunities across the world through expanding global supply chain and enhanced

competitiveness. Hence, today business firms cannot afford to ignore the crucial role of

logistics in the supply chain of business. If ignored, it will probably be suicidal for the

business firm, not only in terms of growth but even for its survival. So study on the

effectiveness of the logistics management is necessary to measure the competency of a firm

along with various factors influencing the customers satisfaction and availability of products.

Kerala Co-operative Milk Marketing Federation Limited (KCMMF) markets its milk

and milk products under the brand name “MILMA”. Malabar Regional Co-operative Milk

Producers’ Union Limited (MRCMPU is one of the three Regional Co-operative Milk

Producers’ Union in Kerala. The importance of a modern marketing strategy for MRCMPU

has only recently be realized. Apart from supervision of milk sales and physical organization

of sale, now the concept of modern marketing strategies are well developed at MRCMPU

Limited including many areas like

Physical marketing of product

Consumer contact/relation

Building of consumer awareness

Creation of many new product

Promotion of existing and new products

Improvement of quality of milk and milk products

1.2.Company profile:

MILMA “THE GOODNESS KERALA WAKES UPTO”

The Kerala Co-operative Milk Marketing Federation (KCMMF), popularly known as

“MILMA ” is providing quality milk products to the consumers. It was established in

February 1980 with its Head Office at Trivandrum. It was started as an Indo-Swiss project.

The project was Launched in 1963 on the basis of a bilateral agreement between the Swiss

confideration and the Government of India. The project has made great strides in the

improvement of live stock farming in the state. One of them is development of Swiss Brown,

a cross breed suited for the states conditions.

Kerala Co-operative Milk Marketing Federation is associated with National Dairy

Development Board (NDDB), Amul, Government of Kerala.. KCMMF has three regional

unions which are TRCMPU, ERCMPU, and MRCMPU. Tiruvananthapuram Regional Co-

operative Milk Producers Union (TRCMPU) covers the district of Trivandrum, Kollam,

Allapey, Pathanamthitta. Ernakulam Regional Co-operative Milk Producers Union

(ERCMPU) covers district of Kottayam, Ernakulam, Idukki, Trichur. Malabar Regional

Co-operative Milk Producers Union (MRCMPU) covers district of Calicut, Kannur,

Kasargod, Wayanad, Malappuram, Palakkad. Each Co-operative union have its own

governing body. Only the actual dairy farmers are entitled to become memebers of the

society. The main activities of the societies are to collect milk from all its farmers. Milk

collected by the societies are sent to related dairy for production.

The single window system as advocated in operation flood is delightedly followed by

MILMA by collecting milk from societies round the year and providing other support system

like supply of cattle feed, vetenary care support for fodder development activities, organized

training in all aspects of cattle management and society management. Thus the dairy get this

dairy entire requirement under one roof. They also provides insurance benefits to Farmers,

Agents. KCMMF organizes various programs to increase production of milk and to get good

return to farmers.

Milma is one of the major brand in kerala. According to survey conducted by Dhanam

Magazine “MILMA” is the number one brand for last five years. KCMMF supplies about

12lakh litres of milk in the market. As it is a venture for farmers prosperity, it supplies about

1400 crores to farmers.

1.2.1.Malabar Regional Co-operative Milk Producers’ Union (MRCMPU)

MRCMPU was registered on 29.06.1989 and started functioning on 15.01.1990. It is

one of the youngest union. The area of operation is six northern district of Kerala. Viz.

Kasargod, Kannur, Kozhikode, Wayanad, Malappuram, Palakkad. It covers 45% of total

geographical area of Kerala State and 42% of total population of the State. The Union is

procuring milk from Anand Pattern Societies (APCOS) and Traditional Milk Societies in the

above area. MRCMPU procure about 3.66 lakh liters of raw milk (per day) from the societies.

The union have the sale of 4.5lakh liters a day. Malabar Unions’ turn over for year 2010-2011

is 430crore. Among this 24% is gained from milk products. Companies surplus profit is

transferred to the hands of farmers. MRCMPU has given about 20crores to farmers as

incentive in the last year. From 15.01.1990 to 15.04.1993 an administrative committee

constituted by the government was governing the organisation and from 16.04.1993 onwards,

MRCMPU is governed by an elected Board of Directors.

Before formation of MRCMPU, the Kannur and Palakkad Dairies were managed by

Kerala Co-operative Marketing Federation(KCMMF) and the erstwhile of Kozhikode,

Malappuram and Wayanad milk Unions were functioning in the area of MRCMPU. It took

over Kannur and Palakkad dairies from KCMMF on 01.06.1990 and the three district milk

unions were merged with MRCMPU on 01.08.1990.

The Head Quarters of MRCMPU is located at Peringolam near Kunnamangalam at a

distance of 15Kms away from Kozhikode City.

Milma For Farmers

MRCMPU had conducted milk production enhancement program at Farmer

Level.The following programmes are carried out at the farmer level to enhance quantity and

quality of milk production.

1.Artificial Insemination:

It is carried out through more than 100 Artificial Insemination centres located at

village dairy co-operative societies. These centres are manned by self employed youth or

trained society employee.

2.Feed and Fodder Programme:

Milma supplies Balanced cattle feed through the village Dairy co-operative

societies at subsidized rates. In order to reduce cost of production they supplies straw pellets

sourced from other states to farmers at subsidized rates. The supply of baled straw to farmers

at subsidized rates from Straw Baling Unit at Palakkad had done. Milma provides essential

drugs and vitamins to keep proper health of milch animals.They established fodder plots to

make available green fodder to farmers at affordable rates.

3. Total Mixed Ration Programme:

The concept of Total Mixed Ration Programme (TMR) is to utilize the locally

available crop residues and feedstuff of plant origin for milk production. The main residues

proposed to be used are from paddy, banana and jackfruit. The plant to manufacture TMR is

proposed to be set up soon.

4. Heifer Development Programme:

The objective of the programme is to develop 2000 high quality cows through their

adoption and focused attention from the heifer stage itself. Ten heifers each will be selected

from 200 Co-operative societies and they are proposed to be given special provisions like

vitamins, minerals, medicines and adequate volumes of cattle feed using the special budget

set apart for this.

5. Farm Support Programme:

This is a new venture aimed at promoting dairy farming as a profitable commercial

venture in itself, instead of being carried out as an “add-on” activity to mainstream

agriculture. More than three hundred project proposals have already been submitted under the

Dairy Venture Capital Fund of the National Bank for Agriculture and Rural Development

(NABARD) of India. Out of these proposals, more than 180 have been sanctioned by the

bank. Many activities had conducted under this venture.Mechanization of dairy farms

through use of milking machines, chaff cutters, animal cooling systems, bio–gas plants,

rubber mats, automatic watering systems etc. They conduct Farm Entrepreneurs Training

Programmes for farmers. Distribute low cost alternate feeds like beer and tapioca waste to

farmers.

6. Decentralized Veterinary Units:

Under this scheme veterinarians on contract basis are posted at a central society with

required facilities and medicines. Service of these veterinarians is to be made available on

cost basis to the farmers of all societies in the area.

7. Women Cattle Care Program:

This programme mainly focuses on training Farm Women groups in the village by a

trained promoter selected from same village. Trainers training are given to the promoters on

different aspects of technical dairying, communication skills, motivation and Personnel

Development at regular intervals. The trained promoters will have men and women farmers

groups in the village (6-8 groups per village) as the target group. The task of promoter is to

conduct regular informal meetings to discuss different topics related to dairying and

individual/social development. It include topic such as Clean milk production, Family

counseling, calf rearing, Child psychology, Feeding of dairy animals, Prevention and control

of diseases, consumer rights, Home management, Artificial insemination activities.

10. Co-operative Development / Institution Building Programme:

This is mainly an institutional development programme. The main activity is training

of presidents, Secretaries, Testers, Committee members and Leaders in the societies so as to

equip them to tae initiative and active role for the development of their society. Recently, this

programme is modified and implemented as Institution Building Programme with more focus

on Planning, Strategy, Formulation, Budgeting etc. at the society level.

11. Rewards to Farmers and APCOS:

In order to develop a competitive spirit among farmers for achieving excellence in

their field of activity, awards are given each year to farmers and societies who show the best

performance. In addition four types of scholarships are also given to farmers’ children to

enable them to pursue education at various levels.

12.Malabar Rural Development Foundation (MRDF):

Malabar Rural Development Foundation is a charitable trust registered under the Indian

Trusts Act 1882 for implementing non – core social developmental activities for the benefit

of farmers in Malabar region. It was established on October 16 2001. It is managed by a

board of trustees consisting seven members including Chairman of KCMMF Ltd , Chairman

of MRCMPU Ltd and Managing Director of MRCMPU Ltd. The major initiatives of MRDF

include the following :

Financial support for the education of children of farmers and employees who have

registered under the trust

Distribution of low cost alternate cattle-feed like beer waste

Procurement and distribution of farm machinery like milking machines, chaff cutters,

rubber mats etc. at reasonable rates to farmers.

Implementation of Farm Tourism Initiatives involving the linkage of dairy farms and

scenic spots in Wayanad District, so as to give tourists an opportunity to spend quality

time with the dairy farmer in the village.

Milma For Consumers:

Milma’s main objective is Farmers’Prosperity through Customer Satisfaction . So

they implemented various programmes for welfare of customers also. Different types of

quality management systems are being implemented in MRCMPU Ltd to ensure that

customer requirements are given due importance and customer satisfaction is enhanced on a

continuous basis. These include:

1. ISO 9001:2008:

ISO 9001:2008 is a quality management standard by which an organization ensures

that customer requirements are met and customer satisfaction is enhanced continuously.

Dairies and chilling plants under the Union have been ISO 9001:2008 certified by the

international certifying agency, M/S Det Norske Veritas B.V of the Netherlands.

ISO is an effective system for integrating the quality development, quality

maintenance and quality improvement efforts of the various groups in an organization so as

to enable the various departments of the Union to achieve full customer satisfaction at

minimum cost. ISO ensures that systems, machinery and devices work safely and

satisfactorily. The International standard also provides a common framework for the

customer and suppliers world wide for smooth interchange of goods and services.

2. Hazard Analysis and Critical Control Point(HACCP):

The growing concern among consumers about the safety of food is one of the greatest

challenges facing the dairy industry today. The Hazard Analysis and Critical Control Point

(HACCP) system is a structured, systematic tool developed to identify and asess the

microbiological, chemical, physical and allergenic hazards and risks associated with the

manufacture and distribution of dairy products. HACCP is a method to reduce the hazard

down to an acceptable level or even less. In MRCMPU Ltd the Kozhikode Dairy is HACCP

certified. HACCP together with prerequisites such as Good Hygienic Practices (GHP) during

milk production and processing and Good Manufacturing Practices (GMP) are the basis for

producing safe milk products any where in the world.

3. ISO:22000:2005:

This latest international standard specifies the requirements for a food safety management

system where an organization in the food chain needs to demonstrate its ability to control

food safety hazards in order to ensure that food is safe at the time of human consumption. It

requires an organization to meet any applicable food safety related statutory and regulatory

requirement through its food safety management system. This system is under

implementation at the newly commissioned Wayanad Dairy.

Kannur Diary

The Kannur Dairy is located at Pallikunnu, 6Kms away from Kannur town near the

National Highway 47. It was inaugurated on 30th august 1979. The Kannur diary is

manufacturing mainly milk, ghee, curd, and sambharam. During the initial period this dairy

manufactured only 1000liters/day of milk, now it has increased to 100,000liters/day. Its area

of operation is Mahe & Kannur district except market areas under Koothuparamba depot.

Milma supplies its products through Agents and Dealers. Under Kannur diary there is 879

dealers and 29 credit institution. The dairy was expanded from 60,000 LPD to 100,000 LPD,

during 2002-03. The dairy procure milk from Kannur and Wayanad district and selling milk

and milk products to Kannur district. Kannur district is divided into four zones. Each zone is

under the controll of each supervisors.

The diary was established in the 1979 by Government of Kerala directly under the

control of the Kerala Live Stock Development and Milk Marketing Board Limited. It

formally comes into the existence on 31st August 1979 with an installed capacity of 10,000

litres per day. The initial procurement was around 586 liters of milk per day and the

maximum sales turnover achieved was around 3452 liters of milk. The procurement gone up

to 1210 liters per day during 1982-83 and sales 4694 liters. During 1983-84 the activities of

the Kannur Diary was taken over by the Kerala Co-operative Milk Marketing Federation.

During the initial stage procurement was about 6000liters per day and the sale 9000liters. The

activities of KCMMF continue till 1990, during that time the procurement reach up to 12000

liters and sale reach up to 27000 liters per day.

In the year of 1990-91 again the dairy was taken over by Malabar Union on 1st june

1990. The average daily procurement at that time was 14300 liters and the sale was around

28000 liters of milk. With the assistance of swiss agency for development and co-operation,

Kannur dairy was able to shot up the procurement to 65963 liters of milk and sales 68365

liters per day. In addition to that they started selling ghee and sales reach up to 13260kg per

month, 4535kg of curd per day and 4805 packets of butter milk per day. With the whole

hearted co-operation of the diary farmers, board employees, dealers and finally consumers

MILMA was able to achieve a land mark in the procurement processing and marketing of

milk and milk products and were able to achieve confidence of general public. During these

periods dairy was able to manufacture and sell various value added products and there by

strengthen the financial base of the diary. The dairy has celebrated its silver jubilee of

functioning on 25th October 2002.

MISSION:

“FARMER’ PROSPERITY THROUGH CONSUMER SATISFACTION”

Objectives of MILMA:

1. To channelize marketable surplus milk from the rural areas to urban deficit areas to

maximise return to the producers and provide quality milk and milk products to the

consumers.

2. To carryout activities for promoting production, procurement processing, and

marketing of milk and milk products for economic development of the farming community.

3. To build up viable dairy industry in the state.

4. To provide constant market and stable price to the dairy farmers for their produce.

Product profile:

MILMA has a range of products. Its marketing chain consist of number of outlets,

across the state ensures the availability of milma products to consumers. Milma produces

wide varieties of milk and milk products to its customer. In Kannur diary MILMA produces

three types of milk based on the fat and other content and also various value added products

extracted from milk. Other than Milk dairy manufactures product such as Curd, Sambharam,

Ghee.

Milk:

In Kannur diary it produces Toned milk, Homogenised milk, Standardized milk.

1. Toned milk:

Toned milk is the first variety of milk introduced by milma to the market. The raw

milk is pasteurized and then the fat and SNF are maintained at 3 % and 8 % respectively.

Pasteurization is a process where in the milk is first boiled to 74 0c and rapidly cooled to 4 0c

in order to make the milk bacteria free. Fat and SNF content in the toned milk is similar to

that of cow milk and makes it a favourite for households. Toned milk is supplied to the

market in 500 ml packets with a maximum retail price of Rs.11.50 per packet.

2. Homogenised milk:

When only toned milk in market. milma could not satisfy the need of its large variety

of customers. So milma introduced homogenized toned milk in the market. The contents of

homogenized toned milk are same as that of the toned milk. It contains 3 % fat and 8.5 %

SNF, but is homogenized. Homogenization is a process where in the fat content of the milk is

pasteurized and dissolved in the milk. Toned milk undergoes this process after pasteurization

and transforms into homogenized toned milk, which is much thicker and denser than the

ordinary toned milk and hence this milk is good for preparation of tea, coffee, and other milk

based dishes. But since the fat is dissolved in the milk, ghee can’t be extracted from

homogenized toned milk.

Homogenized toned milk is introduced in the market mainly targeting

medium scale hotels that need thick milk to make tea and coffee with minimum cost. This

product also has demand from households in festival seasons, family functions. The product

is sold in 500 ml packets with a maximum retail price of Rs.12.50 per packet.

3. Standardised milk:

It contains 1.5 percent fat and 9.0 percent non-fat solids. Ideal for elderly people since

fat content is low. Can also be used for whitening tea/coffee and for the preparation of milk

based drinks like fruit shakes. Fat will not settle at the top since the milk is homogenized.

Available in 500 ml sachets.

Curd:

It is a subsidiary product of milma which is produced in dairies. Curd is an important

milk product produced from milk by the addition of cacture prepared in the laboratory to the

skimmed milk. Milma curd does not contain much fat in it but it contains 10.2 % SNF in it.

The product is generally marketed in 500 gram packets through a chain of wholesale and

retail dealers. Each packet of curd is sold to the wholesale and retail dealers. The maximum

retail price is Rs.14.50 per packet.

Sambharam:

Sambharam (Buttermilk) contains 4.5 percent total solids and natural flavour extracts.

Ideal as thirst quencher during hot season. Prepared under hygienic conditions using fully

natural processes. It is available in 200 ml sachets.

Ghee:

Ghee contains 99.7 percent milk fat. It is manufactured by melting fresh cream under

hygienic conditions. Milma ghee has the ideal golden yellow colour due to presence of

natural carotene in cow milk. (In contrast, ghee manufactured from buffalo milk is white in

color). No artificial colours or flavours are added in Milma ghee. Natural aroma and flavour

of ghee is retained since ghee is produced directly from fresh cream instead of going in for

melting stored butter.

FUNCTIONAL DEPARTMENTS

1. Quality control/ assurance department:

Quality control department is headed by Quality Control Officer assisted by

Technical Superintendent. They check incoming and outgoing milk. 8 employees were

working in this department.

Quality Department Structure

Quality Control Officer (dairy)

Technical Superintends

Lab Technicians

Lab Attendee

Responsibilities:

1. Checking the quality of raw milk.

2. Determine the Fat and SNF level in the raw milk.

3. Checking the quality of milk at different sit permits during the production processes.

4. Ensuring quality of packed milk.

5. To ensure that the supplied milk satisfies the conditions stated in process of food

adulteration act, Package commodities act and Weight and measurement.

2. Production Department:

This department deals with the production activities. The production department is

headed by Technical officer (dairy). 20 employees were working in this department.

Production Department Structure

Production Manager

Senior Supervisor

Supervisor

Plant attendees

3. Technical Department:

There is an engineering department to maintain the machines and other equipment

installed for the production process. This department is headed by Dairy Engineer. They are

deals with machinery maintenance, machinery operation, Vehicle scheduling, electricity,

water and other statutory requirements of the company.26 employees were working in this

department.

Responsibilities:

1. Inspection of machineries for damage.

2. Repairs and maintenance of installed machines

3. Ordering for the new machines and replacement of parts.

4. Refrigerator and boiler maintenance

4. Marketing Department:

MRCMPU has a centralized marketing department for the whole region headed by

marketing manager at head office and dairy level marketing department in each unit is headed

by marketing manager at dairy.

Responsibilities

1. New product Development.

2. Forecasting of sales

3. Development and Execution of market development activities.

4. Developing of marketing strategies.

Marketing Department Structure

Assistant Marketing Manager (Dairy)

Assistant Marketing Officer (Field activities)

Marketing Organizer (supply management)

Field Supervisor

5. Finance and Accounts Department:

It is centralized department situated in the diary and headed by Assistant Finance

Manager. This department deals with financial and accounting activities of the diary.

Responsibilities:

1. Calculation and charging of depreciation to fixed asset.

2. Preparation of P&L A/c and Balance sheet.

3. Making payment to workers.

4. Capital Management Schemes for primary co-operative societies

F & A Department Structure

Assistant Manager F&A

Junior Superintendent F&A

Clerical Staff

6. Human Resources Department:

The unit level Human Resource Department is headed by HR Manager . Activities

like recruitment of permanent staff training and development planning etc centralized in the

P& A at the head office. This department deals with accounting matters related to ranging

from recruitment to retention.

Responsibilities:

1. Recruitment and Selection of employees

2. Providing training and development programs.

3. Fixing compensation and other benefits .

4. Taking care of employee welfare activites

7. MIS and Systems Department:

Computers are widely used for information processing and other office automation

functions. Computer system are installed in diary for various purpose such as Milk billing,

Financial Accounting, Raw Milk Reception and Despatch, Stores, Payroll, Plant Operation,

Marketing etc. All Diaries are interconnected with Management Information System (MIS).

Broadband connection is established between Dairies and Head Office.

Statement of the problem:

The first in research is formulating a research problem. It is the important stage in

applied research, as poorly defined problems will not yield useful result. It is righty said, “a

problem well defined is half-solved”. Poorly defined problems cause confusion and do not

allow the research to develop a good research design.

The problem identified for the study is to find out the level of awareness of MILMA milk and

also to find out the attitude and perception of the consumers towards MILMA milk and milk

products in Kannur district.

Objectives of the Study

Primary objective

1. To assess the Customer Satisfaction levels about the milma products and its

availability.

Secondary Objectives

1. To know about products and production of milk and various milk products.

2. To identify various activities conducting by Milma for the welfare of Farmers and

Consumers.

3. To analyze the market potential of MILMA milk.

Research Methodology

Research methodology is the description, explanation and justification of various

methods of conducting research. This area deals with the research design, sources of data

collection, sampling design, size of the sample, hypothesis, and statistical tools used for the

data analysis and interpretation.

Data Sources

Primary Data

Primary data are those data which are collected for the first time which is original in

character. Here primary data are collected from customers through a well structured

questionnaire.

Secodary Data

Secondary data is information that has already been collected and is usually available

in published or electronic form. This data can be accessed from from company records,

journals, Magazines, websites etc.

Research Instrument

To collect accordant information from the customers, structured questionnaire were

used as the research instrument. The questionnaire helped the researcher to collect

information in a structured format. Researcher will approach the customer and ask questions

according to questionnaire. If customers feel busy questionnaire is supplied to them and

researcher will collect it later. This made data collection and analysis much easier.

Sampling Plan

Sampling Unit:

The sample unit used by researcher is certain number of customer residing in

thaliparamba zone of Milma Kannur Dairy.

Sampling Size

A survey on 100 customers was conducted for measuring customers satisfaction level

on milma products and its availability.

Sampling Procedure

Convenience sampling was used for the study. The researcher collected the data to

find out the customer level of satisfaction by giving the previously prepared questionnaires.

Contact Method

Direct contact method was used for the study. The questionnaires were directly given

to the customers. This method helped the researcher to get directly feedback from the

customers.

Tools Used for Analysis

The collected data has been analyzed using statistical tools like percentage method

and softwares. Tables, diagrams charts etc. were used to present the result in a more

simplified manner. Microsoft Excel and SPSS software is used for processing and analyzing

the data.

Project Period

The period of study is 21 days.

Limitation of the Study

1. The study was limited to a particular area of Kannur district, therefore the finding

and conclusions are valid only for this area.

2. Time factor was a major constraints to the study and posed hindrances for any

deeper investment.

3. The collection of data find some difficult, due to lack co-operation from some

respondent.

4.

Theoretical Review

Introduction

The term “market” is derived from the Latin word ‘Marcatus’ which means to trade or

place of business. So in the literal sense and in the ordinary language, the term ‘Market’

refers to a certain place, where buyers and sellers personally meet each other and make their

purchase and sales. In short, it means a certain place where goods are bought and sold

However in commerce the term ‘Market’ is used in the economic sense. In the

economic sense the term ‘Market’ does not refer to any particular place where buyers and

sellers meet face to face and make their purchase and sales, but covers the whole of any

region, where the buyers and sellers are in such free intercourse, that is contract or

communication with one another that a single price prevails for a certain commodity at a

certain point of time through the region.

In short, it means the getting together of buyers and sellers in person or any by mail

telephone, telegraph of through any other means of communication.

M arketing:

The meaning of the term ‘marketing’ can be studied under two heads. They are,

1. Traditional or old view of marketing

2. Modern of customer oriented marketing

Definition

According to the American Marketing Association, “Marketing is the performances of

business activities that direct the flow of goods and services from producer to customer or

user”. It is an integrated process through which companies build strong customer

relationships and create value for their customers and for themselves. Marketing is used to

identify the customer, satisfy the customer, and keep the customer. With the customer as the

focus of its activities, marketing management is one of the major components of business

management. Marketing evolved to meet the stasis in developing new markets caused by

mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing

strategies requires businesses to shift their focus from production to the perceived needs and

wants of their customers as the means of staying profitable.

Customer Orientation

A firm in the market economy survives by producing goods that persons are willing

and able to buy. Consequently, ascertaining consumer demand is vital for a firm's future

viability and even existence as a going concern. Many companies today have a customer

focus (or market orientation). This implies that the company focuses its activities and

products on consumer demands. Generally, there are three ways of doing this: the customer-

driven approach, the market change identification approach and the product innovation

approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic

marketing decisions. No strategy is pursued until it passes the test of consumer research.

Every aspect of a market offering, including the nature of the product itself, is driven by the

needs of potential consumers. The starting point is always the consumer. The rationale for

this approach is that there is no reason to spend R&D funds developing products that people

will not buy. History attests to many products that were commercial failures in spite of being

technological breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA(Solution,

Information, Value, Access). This system is basically the four Ps renamed and reworded to

provide a customer focus. The SIVA Model provides a demand/customer-centric alternative

to the well-known 4Ps supply side model (product, price, placement, promotion) of

marketing management.

Product → Solution

Promotion → Information

Price → Value

Place → Access

If any of the 4Ps were problematic or were not in the marketing factor of the business, the

business could be in trouble and so other companies may appear in the surroundings of the

company, so the consumer demand on its products will decrease.

Customer Satisfaction

Customer satisfaction is defined as "the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services (ratings)

exceeds specified satisfaction goals." In a survey of nearly 200 senior marketing managers,

71 percent responded that they found a customer satisfaction metric very useful in managing

and monitoring their businesses.

Customer satisfaction is defined as an "evaluation of the perceived discrepancy

between prior expectations and the actual performance of the product" (Tse and Wilton,

1988, Oliver 1999). Satisfaction of customers with products and services of a company is

considered as most important factor leading toward competitiveness and success (Hennig-

Thurau and Klee, 1997). Customer satisfaction is actually how customer evaluates the

ongoing performance (Gustafsson, Johnson and Roos, 2005). According to Kim, Park and

Jeong (2004) customer satisfaction is customer’s reaction to the state of satisfaction, and

customer’s judgment of satisfaction level. Customer satisfaction is very important in today’s

business world as according to Deng et al., (2009) the ability of a service provider to create

high degree of satisfaction is crucial for product differentiation and developing strong

relationship with customers.

Customer satisfaction makes the customers loyal to the company. Previous researchers have

found that satisfaction of the customers can help the brands to build long and profitable

relationships with their customers (Eshghi, Haughton and Topi, 2007). Though it is costly to

generate satisfied and loyal customers but that would prove profitable in a long run for a firm

(Anderson, Fornell and Mazvancheryl, 2004). Therefore a firm should concentrate on the

improvement of service quality and charge appropriate fair price in order to satisfy their

customers which would ultimately help the firm to retain its customers (Gustafsson, Johnson

and Roos, 2005).

It is a common phenomenon that the services a brand offers and the price it charges

actually determine the level of satisfaction among its customers, than any other measure

(Turel et al. 2006). Customer’s involvement is also important as when buyer consider the

product important and invests time to seek information then it ultimately enhances the

satisfaction level (Russell-Bennett, McColl Kennedy and Coote, 2007). This satisfaction may

influence the concerned company by repurchase, purchase of more products, positive word of

mouth and willingness of customer to pay more for the particular brand. Any business is

likely to lose market share, customers and investors if it fails to satisfy customers as

effectively and efficiently as its competitors is doing (Anderson, Fornell, and Mazvancheryl,

2004).

Organizations need to retain existing customers while targeting non-customers.

Measuring customer satisfaction provides an indication of how successful the organization is

at providing products and/or services to the marketplace.

Customer satisfaction is measured at the individual level, but it is almost always

reported at an aggregate level. It can be, and often is, measured along various dimensions. A

hotel, for example, might ask customers to rate their experience with its front desk and check-

in service, with the room, with the amenities in the room, with the restaurants, and so on.

Additionally, in a holistic sense, the hotel might ask about overall satisfaction “with your

stay.”

As research on consumption experiences grows, evidence suggests that consumers

purchase goods and services for a combination of two types of benefits: hedonic and

utilitarian. Hedonic benefits are associated with the sensory and experiential attributes of the

product. Utilitarian benefits of a product are associated with the more instrumental and

functional attributes of the product (Batra and Athola 1990).

Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction will vary from person to person and product/service

to product/service. The state of satisfaction depends on a number of both psychological and

physical variables which correlate with satisfaction behaviors such as return and recommend

rate. The level of satisfaction can also vary depending on other options the customer may

have and other products against which the customer can compare the organization's products.

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988

provides the basis for the measurement of customer satisfaction with a service by using the

gap between the customer's expectation of performance and their perceived experience of

performance. This provides the measurer with a satisfaction "gap" which is objective and

quantitative in nature. Work done by Cronin and Taylor propose the

"confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman,

Zeithaml and Berry as two different measures (perception and expectation of performance)

into a single measurement of performance according to expectationThe usual measures of

customer satisfaction involve a survey with a set of statements using a Likert Technique or

scale. The customer is asked to evaluate each statement and in term of their perception and

expectation of performance of the organization being measured. Their satisfaction is

generally measured on a five-point scale.

Customer satisfaction data can also be collected on a 10-point scale.

Regardless of the scale used, the objective is to measure customers’ perceived

satisfaction with their experience of a firm’s offerings. It is essential for firms to effectively

manage customer satisfaction. To be able do this, we need accurate measurement of

satisfaction.

Good quality measures need to have high satisfaction loadings, good reliability, and

low error variances. In an empirical study comparing commonly used satisfaction measures it

was found that two multi-item semantic differential scales performed best across both

hedonic and utilitarian service consumption contexts. According to studies by Wirtz & Lee

(2003), they identified a six-item 7-point semantic differential scale (e.g., Oliver and Swan

1983), which is a six-item 7-point bipolar scale, that consistently performed best across both

hedonic and utilitarian services. It loaded most highly on satisfaction, had the highest item

reliability, and had by far the lowest error variance across both studies. In the study, the six

items asked respondents’ evaluation of their most recent experience with ATM services and

ice cream restaurant, along seven points within these six items: “please me to displeased me”,

“contented with to disgusted with”, “very satisfied with to very dissatisfied with”, “did a

good job for me to did a poor job for me”, “wise choice to poor choice” and “happy with to

unhappy with”.

A semantic differential (4 items) scale (e.g., Eroglu and Machleit 1990)[9], which is a

four-item 7-point bipolar scale, was the second best performing measure, which was again

consistent across both contexts. In the study, respondents were asked to evaluate their

experience with both products, along seven points within these four items: “satisfied to

dissatisfied”, “favorable to unfavorable”, “pleasant to unpleasant” and “I like it very much to

I didn’t like it at all”.The third best scale was single-item percentage measure, a one-item 7-

point bipolar scale (e.g., Westbrook 1980)[10]. Again, the respondents were asked to evaluate

their experience on both ATM services and ice cream restaurants, along seven points within

“delighted to terrible”.

It seems that dependent on a trade-off between length of the questionnaire and quality

of satisfaction measure, these scales seem to be good options for measuring customer

satisfaction in academic and applied studies research alike. All other measures tested

consistently performed worse than the top three measures, and/or their performance varied

significantly across the two service contexts in their study. These results suggest that more

careful pretesting would be prudent should these measures be used.

Finally, all measures captured both affective and cognitive aspects of satisfaction,

independent of their scale anchors. Affective measures capture a consumer’s attitude

(liking/disliking) towards a product, which can result from any product information or

experience. On the other hand, cognitive element is defined as an appraisal or conclusion on

how the product’s performance compared against expectations (or exceeded or fell short of

expectations), was useful (or not useful), fit the situation (or did not fit), exceeded the

requirements of the situation (or did not exceed

Data Analysis

1. The Brand do you prefer?

Brand Name No of Respondent % of Respondent

MILMA 81 81AMUL 9 9

JANATHA 10 10WAYANAD MILK 0 0

TOTAL 100 100

Interpretation:

From 100 samples taken, 81% of people prefer Milma Brand. 9% prefer Amul, 10%

of customer prefer Janatha Brand. Nobody choose Wayanad milk.

2. The product of MILMA you buying?

Product name No of Respondent % of Respondent

MILK 58 71.6CURD 13 16.05GHEE 6 7.41

BUTTER MILK 4 4.94ICE CREAM 0 0

TOTAL 81 100

Interpretation:

Among 81 customer, 71.6% buys Milk, 16.05% uses Curd, 4.94% buys Butter milk,

and 7.41% uses Ghee. Ice creams are not available in this area.

3. How did you come to know about MILMA?

Sources No of Respondent % of RespondentAdvertisement 67 82.72

Relatives 5 6.17T.V. 3 3.7

News Paper 0 0Other Sources 6 7.41

Total 81 100

Interpretation:

Milma came to through different sources. 82.72% from Advertisement, 6.17% from

Relatives, 3.7% from T.V., 7.41% from Other sources.

4. How often do you buy MILMA product?

Options No of Respondent % of RespondentVery frequently 54 66.67

Frequently 13 16.05Occasionally 8 9.88

Rarely 6 7.4Very Rarely 0 0

Total 81 100

Interpretation:

In this 67% buys Milma products very frequently, 16% purchase frequently,

10%Occasionally, and 7% people buys rarely.

5. Is MILMA providing the best value for money?

Options No of Respondent % of RespondentStrongly Agree 23 28.4

Agree 41 50.62Neutral 14 17.28

Disagree 3 3.7Strongly Disagree 0 0

Total 81 100

Interpretation:

Among 81 samples 28.4% are strongly agree, 50.62% are Agree, 17.28% are

Neutral,3.37% are Strongly Disagree.

6. It is easy to buy MILMA product because of its availability?

Options No of Respondent % of Respondent

Strongly Agree 46 56.8

Agree 27 33.33

Neutral 5 6.17Disagree 3 3.7

Strongly Disagree 0 0

Total 81 100

Interpretation:

56.8% customer Strongly Agree that Milma product are available,33.33% are Agree,

6.17% are Neutral, 3.7% are Disagree.

7. Price of MILMA compared to competitors’ Product?

Options No of Respondent % of RespondentVery High 17 20.99

High 18 22.22Neutral 46 56.79

Low 0 0Very low 0 0

Total 81 100

Interpretation:

20.99% customers says that Milma’s price is Very high compared to competitors.

22.22% are High, 56.79% are Neutral.

8. Quality of MILMA product?


Highly Satisfied 26 32.09

Satisfied 46 56.79

Nuetral 7 8.64

Dissatisfied 2 2.48

Highly Dissatisfied 0 0Total 81 100

Interpretation:

32.09% customers are Highly satisfied with quality of product, 56.79% are satisfied,

8.64% are Nuetral, 2.48% are Dissatisfied.

9. Reachability and Accessibility of MILMA product?

Options No of Respondent % of RespondentHighly Satisfied 16 19.75

Satisfied 51 62.96Nuetral 11 13.58

Dissatisfied 3 3.71Highly Dissatisfied 0 0

Total 81 100

Interpretation:

19.75% are Highly satisfied, 62.96% are Satisfied, 13.58% are Nuetral, 3.71% are

Dissatified.

10. whom the product buy?

Sources No of Respondent % of RespondentAgent 2 2.47

Retailer 75 92.59

Suppliers 0 0Home Delivery 4 4.94

Total 81 100

Interpretation:

Among 81 samples 92.59% respondents from Retailer, 2.47% from Agents, 4.94%

from Home Delivery.

11. Taste of MILMA products?



Satisfied 58 71.6

Nuetral 12 14.82

Dissatisfied 3 3.7

Highly Dissatisfied 0 0Total 81 100

Interpretation:

9.88% are Highly satisfied, 71.6% are Satisfied, 14.82% are Nuetral, 3.7% are

Dissatisfied.

12. Freshness of MILMA product?



Satisfied 49 60.49

Nuetral 11 13.58Dissatisfied 3 3.71

Highly Dissatisfied 0 0

Total 81 100

Interpretation:

22.22% are Highly satisfied with freshness of products, 60.49% are Satisfied, 13.58%

are Nuetral, 3.71% are Dissatified.

13. Packaging of MILMA products?

Options No of Respondent % of RespondentHighly Satisfied 13 16.05

Satisfied 17 20.99

Nuetral 47 58.02Dissatisfied 4 4.94

Highly Dissatisfied 0 0

Total 81 100

Interpretation:

Among 81 samples,16.05% are highly satisfied. 20.99% are Satisfied. 58.02% are

Nuetral. 4.94% are Dissatisfied

14. Service of MILMA in delivering products?

Options No of Respondent % of RespondentGood 54 66.67

Nuetral 20 24.69Bad 7 8.64Total 81 100

Interpretation:

Among 81 samples 67% are good, 25% are Nuetral, 8% opinion is Bad.

15. Do you suggest MILMA to anybody?


Yes 74 91.36No 7 8.64

Total 81 100

Interpretation:

91.36% customers respond Yes ,and 8.64% are NO.

Findings:

This chapter is including in my survey findings, suggestions and conclusions of my

study. First I would like to present my survey findings. The main findings of my survey are

as follows:

1. Among the 100 samples taken, 81 customers buys MILMA products. Samples are

taken from specified zone of Kannur District.

2. Of the 81 samples, 82.72% came to know about milma from Advertisement, 6.17%

knows from Relatives,3.7% and 7.41% knows from T.V. and Other sources respectively.

3. It is findings in the survey that 66.67% of customers Very frequently purchase

milma products and remaining 33.33% customers purchase very frequently, frequently,&

rarely .

4. The data reveals that majority of customers are satisfied with the quality and

Freshness of milk products.

5. A major section customers opinion is neutral that the price of milma is high as

compared to other products.

6. Majority of customers strongly agree that they can find it easy to buy the product

because of its availability.

Suggestions:

1. Milma is branded product, therefore customers have a view that company is adding

preservatives in the products. So company want to take necessary action to change their view.

2. Milma should increase quality of tonned milk, as compared to HTM milk.

3. Even though, the customers are fairly satisfied with its price,quantity&quality

necessary steps should be taken to upgrade the satisfaction level of customers to maintain

market stability.

4. The customers might switch to the competitors product if milma charges high price

so in order to argument brand loyalty should charge reasonably.

5. Milma should bring varieties in the packing of curd.

6. Ice creams are not available in certain area Kannur district, therefore more agents

should be sent to this area.

Conclusion:

From the study conducted the following conclusions can be drawn. In order the

dreams into reality and for turning liabilities into assets one must have to meet the needs of

the customers. The factors considered by the customer before purchasing milk are freshness,

taste, price, quantity, quality, and easy availability.

Finally I conclude that, majority of the customers are satisfied with the milma & other Milk

products because of its easy availability, good quality, & reach ability & accessibility. Some

customers are not satisfied with the milma & other Milk products because of high price,

spoilage etc. therefore, if slight modification in the marketing programme such as promotion

programmers, product lines etc., definitely company can be as a monopoly and strong market

leader. Milma has also to take care of its competitors into consideration and more importantly

its customers before making any move.

Appendices:

“A customer satisfaction study on Milma products”

Respected sir/Madam

Given below is a questionnaire to prepare a project report on above title in

connection with partial fulfillment of my MBA course. I request you to provide the required

information for the completion of my study .Promise that the information is used exclusively

for academic purpose only.

1. NAME: 2. AGE : 3. SEX:

4. ADDRESS: 5. OCCUPATION:

6. Which Brand do you prefer?

Milma Amul Janatha Wayanad Milk

7. Which product of milma are you buying?

Milk Curd Ghee Buttermilk Ice cream MilmaPlus

8. How did you come to know about Milma?

Advertisement Relatives T.V. News paper Other sources

9. .How often do you buy this product?

Very frequently Frequently occasionally rarely very rarely

10. Is Milma providing the best value for money?

Strongly agree Agree Neutral Disagree Strongly disagree

11. I find it easy to buy the product because of its availability?

Strongly agree Agree Neutral Disagree Strongly disagree

12. Your opinion on the price of Milma compared to competitors’ Product?

Very high High Neutral Low Very low

13. Are you satisfied with the quality of Milma product?

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

14. Are you satisfied with reachbility and accessibility of Milma product?


15. From whom you buy the product?

Agent Retailer Suppliers Home delivery

16. Are you satisfied with the taste of Milma products?


17. Are you satisfied with the freshness of Milma products?


18. Are you satisfied with packaging of Milma ?


19. Service of Milma in delivering products?

Good Neutral Bad

20. Do you suggest Milma to anybody?

Yes No

21. Your Suggestion And Recommendations…

a) Milk: ………………………………………………………………………

………………………………………………………………………

b) Curd ………………………………………………………………………

………………………………………………………………………

c) Buttermilk ………………………………………………………………..

……………………………………………………………………….

d) Ghee ………………………………………………………………………..

………………………………………………………………………..

Milma Project123

Documents

poorly defined

maximum retail

critical control

point bipolar

homogenized

measuring

buy milma

ice creams