Report on Milk Vita

BANGLADESH UNIVERSITY OF BUSINESS & TECHNOLOGY (BUBT)

Mirpur-02, Dhaka-1216

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Report On Overall Performance Of

MILK VITA

SUBMITTED TO:

Md. Aslam UddinSubject supervisor

Department of MarketingBUBT

SUBMITTED BY:

Name: ID:

Md. Rzwan Hossain Khan

051

Titu Ritchil 053

M. Hamidur Rahman

081

Md. Faisal Mahmud

082

Benzir ahmed 084

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Intake – 119th, Section – 02

DATE OF SUBMITION: 20/8/2011

Submission Date: 20/8/2011

Letter of transmittal

Date: August 20, 2011

To

Md. Aslam Uddin

Lecturer

Department of Marketing School of Business

Bangladesh University of Business & Technology (BUBT)

Subject: Submission of our Report

Dear Sir,

I would like to thank you for report me this subject to prepare the report. This task has been given me the opportunity to explore one of the most important aspect of the products. The report contains a comprehensive study based on the product. It was a great pleasure for me to have such type of opportunity to work on this topic. We have endeavor our best to come out with a good one and also if we do any mistake (involuntary), then please try to see it in the eyes of forgiven.

Finally we would like to thank you for valuable guidance & supportive in preparing this report. We will be grateful for any clarification when required.

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We will be highly obliged if you are kind enough to approve this report and provide your valuable judgment on it.

Group- LibertyIntake – 19th, Section – 02BBA ProgramBangladesh University of Business & Technology (BUBT)

ACKNOWLEDGEMET

First of all we express my deep gratitude and thanks to the

Almighty Allah for his infinite that allowed us to complete this report

as a part of the BBA program. A lot of effort and study have been

involved in preparing this report reality.

The successful accomplishment of this report is the outcome of

the contribution of number of people, especially those who gave us

time and share their thoughts and gave suggestions to prepare this

report. We will pay humble gratitude to the almighty for giving me

ability and patience to complete this report.

We are very much grateful to our course teacher Md. Aslam

Uddin, Department of Marketing School of Business, BUBT to give us

guideline to prepare this report. He helped us a lot to choose the topic

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and help us to thing different way to make the report. Without his

proper guideline it may be vary difficult to prepare this assignment.

No: Particulars Page No:1. Executive summary 6

Part - 12. Introduction, Background, Significant 83. Scope of the report 94. Objective of the study 105. Methodology of the study 116. Limitation to make this report 12

Part – 2: Company Profile/ Overview of Company7. Background, Vision 148. Objectives, Organ gram 15

9. SWOT analysis 16

Part – 3: Marketing Mix analysis4 P’s of Milk Vita

10. Products 18

11. Price 19

12. Place 20

13. Promotion 21

Part – 4: Findings and Analysis14. Findings and Analysis 22

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Part – 515. Recommendation, Conclusion 24

16. Bibliography 25

Executive Summary

Milk Vita a trade name for dairy products manufactured by the Bangladesh Milk Producers Co-operative Union Limited (BMPCUL). Established under the co-operative fold, the organization, popularly known as Milk Vita, makes necessary efforts to fulfill the demand for MILK and milk products of city dwellers by collecting milk from remote places of the country. Presently, Bangladesh Milk Producers Co-operative Union Limited operates in six milk shed areas of the country viz Tangail, Manikganj, Tekerhat, Baghabarighat, Rangpur, and Sreenagar. It collects milk through networks established by its primary co-operative societies. BMPCUL is the central union of a total of 345 Primary Milk Producer's Co-operative Societies and has a membership of about 40,000 milk-producing farmer-members. To become a member of a rural primary society, farmers have to own a milking cow and have to buy a share of Tk 10.00 and pay Tk 1.00 as admission fee. To maintain membership, a farmer has to supply at least 150 liters of milk in a year.

Members supply milk to societies twice a day on cash payment with a preferential system of weekly basis matched on the market day of each area. The rate of the farmer's milk is decided on the basis of fat and solid non-fat (SNF) percentage. Milk collected from cooperative societies is transported to the nearest plant for preliminary processing and afterwards milk of Tangail, Manikganj, Tekerhat and Sreenagar areas is brought to Dhaka for the production of liquid milk, cream, ice-

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cream, flavoured milk, and sweet yogurt. Milk collected from Rangpur and Baghabarighat areas is processed at Baghabarighat Dairy Plant for Powder Milk, Butter and Ghee (butter oil) production. All products of the organization are marketed under the trade name of 'Milk Vita'.

1 Introduction2 Significant3 Scope of report4 Objectives of report5 Methodology6 Limitation

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INTRODUCTION OF THE REPORT

Report means an overall performance of a company or subject.As a partial fulfillment of the BBA program in Bangladesh University of Business & Technology (BUBT), we got a chance to make a report at the Milk Vita. This report is the outcome of our experience at the organization. We can know an overall idea of an organization by a report.

BACKGROUND

We have tried our level best to put more emphases on the consumer demand and its recovery process since it was the topic of our course program. This report is to be used only for the academic purpose. We have collected all the necessary and relevant information from various primary and secondary sources. We would like to give thanks to everyone who has helped and encouraged us in the process of preparing this report.

SIGNIFICANT

All these information will help the management to identify various scopes and limitations of an organization. This is the basic rational behind the study. Besides it would be a great opportunity for us to get familiar with this system. So this study is very significant for both the company and us. They satisfy to our work and helped us.

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SCOPE OF THE REPORT

For the student:

Student can know about the Institution,

Formation.

Objective.

Activities.

Active Plan.

Organ Gram.

Management processes etc.

For the Government:

Government can get the information about contribute on the organization in the

economic development of the country.

For the customer:

The study will be benefited for the customer and the potential customer.

The customer can know about the various service served by the company. So

that they can chose the perfect service.

For the Organization:

People in management process, employees can know the impression of the

institution to the outside.

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They can find out their strength and weakness.

OBJECTIVE OF THE STUDY

The Milk Vita is one of the big organizations of our economy. So we tried our best

to force the role of Milk Vita in the economic development of Bangladesh.

Our special focus was on the analysis of the Overall Performance of Milk Vita. So

we tried to make an analysis view of that state.

Our additional focus was on the problem of the corporate social responsibility of

the company and our objective was to find out the solution of this problem.

Therefore, if we point specifically the main purpose of our study are a follows:

To present an over view Milk Vita.

To find out the objective of Milk Vita.

Analyzing the position in milk production of Bangladesh.

To examine the formation of Milk Vita.

To identify the service they provide.

To find out their existing and future programs.

To identify the problems with their management.

Evaluate the contribution in overall economic development.

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METHODOLOGY OF THE STUDY

When we were to do the report the first question raised in our mind is which type

of data, how much data we need from where we would collect them. For reason we

divided our sources of data into two section, such as primary data collection source

and the secondary data collection source.

We decided that, primary data which are not available so we have to use in web

sites, published books, annual reports newspaper and TV channels; we will them

by visiting to Milk Vita head office at tejgaon.

Primary source of data:

Conversation with the company officials.

Formal and informal conversation.

Conversation with the employee of the Organization.

Secondary source of data:

Official website of Milk Vita.

Annual report of Milk Vita.

Prospectus.

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LIMITATION TO MAKE TIHIS REPORT

In report, we will need to explain limitation. The word limitation we mean things

that keep in your report from being an ideal treatment of the problem. Of course,

in reality there is no such thing as an ideal treatment. No real world problem can

be completely explored & because different writers will approach the same

problem differently, what seems complete to another. Every one understands that

no report can provide coverage of a given topic in an absolute sense. If a major

source of information was unavailable, we would note this limitation in our report.

Be frank in this section but not too negative, state clearly what was not done &

why, but do so without apology or such negative the validity of our finding.

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History of Milk Vita:

Background of Bangladesh Milk producers’ Co-operative Union Limited

Pioneer of Dairy in BangladeshLate M. Mukhlesur Rahman

In 1946, a Dairy Plant with a capacity of 2,000 liters per day was established at Lahirimohanpur, Pabna (presently) with the target to send milk products to Calcutta (India) market that was within the easy rail communication system. After the partition of India and Pakistan, Eastern milk Products Limited, a private

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company purchased this dairy in 1952 from the original owner. In 1965, the first milk producers’ co-operative was formed under the name Eastern Milk Producers’ Co-operative Union Limited (EMPCUL) through Government patronization over the plant at Lhirimohanpur. About 1000 village milk producers’ co-operative societies were formed through a development scheme and the federal union was termed as Milk Union.

There was another dairy plant, ASTO Dairy at Dhaka run by the National Co-operative Marketing Society which was amalgamated with the EMPCUL in 1974. The debts, assets and liabilities were transferred to the Eastern Milk Producers’ Co-operative Union Limited. The organization was renamed as Bangladesh Milk Producers’ Co-operative Union Limited in 1977.

Vision:

- Our Mission is to gain self sufficiency in the dairy sector with in 2025.- To fulfill the nutritional demand.- The activities of milk vita is contributing a bondage between the rural and urban areas by way of marketing the rural products to city dwellers and on the other hand re-investing back the money received against milk and milk product sale to the rural area for re-investment in milk purchase. This creates positive impact on national economy along with materialization of the program for country’s self-sufficiency through white revolution.

Objective:

Supporting the hardcore poor, landless & marginal farmers & the villagers with the best logistic support in Milk sector to enhance countrywide milk production & collecting the milk, making more milk based products Our objective is

- To raise subsidiary income of the hard-core poor, landless and marginal farmers living in relatively remote rural areas of the country by way of purchasing their produced milk at reasonable price through guaranteed market under the co-operative fold.- Ensuring the regular supply of safe, hygienic and nutritious milk and milk products to city dwellers at a fair price.

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Organ gram:

SWOT ANALYSIS

1. Strength:

- Arranging of balance cattle feed at no-profit no loss basis.- Human resources development for society members.- Cow loan for society members.

2. Weakness:

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-They have many competitors.-A lack of retailers who can work face to face with the customers to generate product awareness.

3. Opportunity:

- Free Medication, vaccination facilities for the society members.- Unique supply of milk and milk products augmenting consumer’s satisfaction.- Green grass seeds & grass cutting facilities for the farmers.- Extension services, Training.

4. Threats:

-Future competition from already established market participation.- A slump in the economy that could has a negative effect on peoples spending of discretionary income on these products.

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PRODUCTS, PRICE, PLACE, PROMOTION

MARKETING MIX ANALYSIS OF MILK VITA

The set of controllable tactical marketing tools - products, price, place and promotion the firm blends to produce the response it wants in the target market.

Product Price

Target Markets

Promotion Place

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Fig: Integrated market mix 4 P’s of Milk Vita:

1. Products: “Goods and service”- combination that a company offers a target market. There are some products are shows:

2. Price: Price is the amount of money that consumers have to pay to obtain the products. The price of Milk Vita products are given below:

SL NO.

Name of the Products Distributor Price Retailer Price Consumer Price Effective Date

01 LIQUID MILK1 Ltr. Pkt 41.30 42.60 45.00 12/05/2009½ Ltr. pkt. 21.70 22.40 24.00 09/04/2009½ Ltr. Pkt. (Low fat) 23.65 24.30 26.00 29/12/2008½ Ltr. Pkt. (UHT) 22.25 23.00 25.00 15/07/2008¼ Ltr. Pkt. 11.45 11.80 13.00 09/04/2009UHT Flavoured Milk 13.25 14.00 16.00 01/11/2007

02 I.S.M.P1 kg Pouch pkt. 335.00 314.00 350.00 14/05/2009500gm Pouch Pkt. 170.00 174.00 180.00 14/05/2009Per kg Bulk (25 kg bag) 315.00 …….. ……. 14/05/2009

03 GHEE900 gm tin 493.00 508.00 530.00 24/10/2008450 gm tin 250.00 258.00 270.00 24/10/2008200 gm tin 118.00 123.00 130.00 24/10/2008

Pasteurized Milk Milk Vita CreamFresh Milk Milk Vita Sweet Curd

Flavored Milk Milk Vita Rosh MalaiFull Cream Milk Powder Milk Vita Ice-Cream

Milk Vita Chocolate Milk Vita Lollys

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Bulk (per kg) 493.00 …….. ……... 24/10/200804 BUTTER

400 gm tin 170.00 174.00 180.00 08/01/2008200 gm pkt. 80.00 83.00 90.00 08/01/2008

  100 gm pkt. 44.00 46.00 50.00 08/01/2008  Bulk (per kg) 375.00 390.00 …….. 08/01/200804 ICE-CREAM

  2ltr. box 138.00 151.00 180.00 01/11/2007  1ltr. box 82.00 90.00 105.00 01/11/2007  ½ ltr. box 43.00 47.00 55.00 01/11/2007  Cup 9.10 10.00 12.00 01/11/2007  Chocober (65ml) 11.00 12.00 15.00 01/11/2007  Chocober (48m.) 9.10 10.00 12.00 01/11/2007  Lollies (65ml) 4.55 05.00 06.00 01/11/2007  Lollies (48ml) 3.65   04.00 05.00 01/11/2007 05 SWEET CURD          1 ltr box 91.00 100.00 115.00  01/11/2007  ½ ltr box 50.00 55.00 65.00  01/11/2007  Cup 11.00 12.00 15.00  01/11/2007 06 SWEET LESS CURD          1 ltr. box 61.00 65.00 70.00  15/07/2008  ½ ltr. Box 33.00 36.00 40.00  15/07/2008

 07 RASMALAI        1 ltr. box 131.00 144.00 160.00 01/11/2007

  ½ ltr. box 70.00 77.00 86.00 01/11/200708 CONDENSED MILK

Per tin (415gm) 45.60 46.00 48.00 28/08/200709 CHOCOLATE

Per pkt (20gm) 5.60 6.00 7.00 23/11/2006

 Establishment (1989-2008)

Place Nature of PlantsProduction Capacity

(Liters per day)Date of

Commissioning

 Srinagar (Monshigonj)  Milk Chilling  15,000  June 1975

 Rangpur  Milk Chilling  15,0008000/h   

 Powder milk production  factory, Baghabari  Powder milk  Processing  8000/h  

 Banggura (Pabna)  Milk Chilling  10,000 lit   

 Laherimohonpur  (Shirajgonj)  Milk Chilling  10,000 lit   

 Bhirab (kishorgonj)  Milk Chilling  5,000 lit  

 Raipur (laxmipur)  Milk Chilling  10,000 lit  

 Nator  Milk Chilling  5,000 lit  

 Islampur (Jamalpur)  Milk Chilling  5,000 lit  

 Gabtoli (Bogra)  Milk Chilling  5,000 lit  

 Baghabari  Minaral water Plant  60,000 lit/h  

 Domar (nilphamary)  Milk Chilling  5,000 lit  

 Shaithkhira  Milk Chilling  5,000 lit  

 Noagon  Milk Chilling  5,000 lit  

 Ramgonj (laxmipur)  Milk Chilling  5,000 lit  

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 Shibpur (Narsingdi)  Pasteurization  30,000 lit  

 Candi and Chocolate Plant Tajgoan, Dhaka  Coverchar,  Chocolate  500 kg/day  

 Moulovibazar  Milk Chilling  5,000 lit  

 Khulna  Milk Chilling  5,000 lit  

 UHT Milk Plant, Mirpur.  Flaverd Milk  40,000 lit   

 Condence Milk Plant, Mirpur.  Condence Milk  96,000 can/h  

 Chirirbondor, Dinajpur  Milk Chilling  5,000 lit  

 Ishardi, Pabna  Milk Chilling Factory  5,000 lit  

 Sonagazi. Fani  Milk Chilling  5,000 lit  

 Subornochar, Noyakhali  Milk Chilling  5,000 lit  

 Shahjadpur Purbanchal,  Sirajgonj  Milk Chilling  5,000 lit  

 Sorupkathi, Pirojpur  Milk Chilling  5,000 lit  

 Tungi Bari, Munshigonj  Milk Chilling  5,000 lit  

 Jamalpur  Milk Chilling  5,000 lit  

 Can making plant, Baghabari  Condence Milk  12,000 can/h  

 UHT Liquied milk, Baghabari  UHT Liquied Milk  1,00,000 lit  

3. Place: Company activities that make the product available. The price is given below:

4. Promotion:

The major products of Milk Vita include: pasteurized liquid milk, butter, ghee, ice-cream and ice lollies, full cream milk powder, skim milk powder, flavored milk, sweet curd, cone ice cream, cream and rasa malai (sweetmeats). With the gradual expansion of the organization, Milk Vita has been paying due attention to addition of new products to the product range and to the maintenance of overall quality and hygienic conditions.

Milk Vita's products are mainly marketed in major cities through established marketing networks of rickshaw van co-operative societies in addition to the formal retail agencies and wholesaling distributors. Milk Vita's marketing operation through the Milk Distributors' Rickshaw Van Co-operative Society is another unique example depicting success of co-operative systems in the country. In this process, the common rickshaw-pullers have formed societies, which have been supplied with locally fabricated insulated milk delivery vans on a hire-purchase basis.

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It has been observed that most of the pullers have become the owners of the rickshaw vans paying off the dues through their income from the delivery of milk and milk products to retail shops. Presently, there are five milk distributors' rickshaw societies of which one society is established in a 10-storeyed house.

FINDINGS AND ANALYSIS

1. Milk vita company’ authorities buy raw materials from far away of the village. That’s why transportation cost is growth. As a result product price are increased.2. They have no any individual production firm, which is creating problem for company and buyer.3. Every year milk vita company shows their income statement always loss, because of their autocratic leadership.

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1 Recommendation2 Conclusion3 Bibliography 22

RECOMANDATION

1. They should change their place whereas collect their raw materials .That means near the factory which will reduce the production cost.2. If they established individual firm then they provide product with reasonable price and quality products.3. If they establish participative leadership then they make profit.

framing, within a given period of time, of an appropriate dairy policy for the country depicting all pertinent issues

formation of the Dairy Development Board of Bangladesh with professionals of the sector assuring adequate authority and autonomy (Rahman et al. 2000)

acquisition of batman land for farmers' cattle grazing government, national and international assistance in the milk sector both for

plant establishment and infrastructural support replication of the Milk Vita model in other parts of Bangladesh through

government initiatives and funding for the benefit of both farmers and consumers and

Channeling the government's poverty alleviation programmers through the infrastructure of Milk Vita in all the milk-shed areas of the country.

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CONCLUSION

Milk Vita has emerged as a successful co-operative Endeavour in Bangladesh. It provides poor, landless and marginal milk producer farmers and women in the associated communities with regular supplementary incomes. It has shown itself capable of strengthening its activities further to increase dairy production and thereby to contribute effectively to the national economy through a strong and viable organization of small farmers.

Implementation of these major issues by the relevant quarters will contribute effectively in increasing domestic agricultural production.

1. Annual report of Milk Vita

2. www.googly.com

3. www.milkvita.com

4. Official website of Milk Vita

5. Prospectus

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