CHAPTER-1

INTRODUCTION

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1.1 INTRODUCTION

In today’s time there is serve competition in every field and the milk industry is also
facing a lot of competition a we know competitor can pause some threats to the
organization as well as they provide us some opportunities. An organization can store
over its competition either by enhancing the quality of the products, reducing the price,
heavily spending promotional activities or having a effective distribution network.
The project was concerned with the tetra packs of verka. Flavored milk, flavored lassi,
Mango Rassila and kheer were the products of the verka coming in the tetra packs. These
tetra packs were increasing the self-life of the products. These looked good in the
packing and were good for the heath. This project was concerned to find out how many
retailers and citizens were satisfied with tetra packs of verka. How many retailer sale the
products of verka and how many consumers use verka.? Which type of the improvement
was required by the consumers and the retailer and what were the reasons behind the use
and no use of the tetra packs?
The project was concerned to find out which were the other competitors of the verka in
Gurdaspur. The citizens having awareness regarding the tetra packs of the verka and
which were the products used by the consumers and how often consumer use the tetra
packs of the verka. How much they were satisfied with the tetra packs of verka? In which
factors the citizens had the complaints and want improvement? How much margin was
offered by the others companies to the retailers? Which tetra packs of verka were kept by
the retailers. There were how many distributors of tetra packs, were they providing
supply in time? if late then how much late? How much they were satisfied by sale of the
verka.? How much quantity they sale? Finding the reasons why they were not selling the
products of the verka? Or they were having any complaint. Any retailers want to keep the
products of verka.?

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1.2 INDUSTRY PROFILE

1.2.1 Indian Dairy Industry

Dairy is a place where handling of milk and milk products is done and technology refers
to the application of scientific knowledge for practical purposes. Dairy technology has
been defined as that branch of dairy science, which deals with the processing of milk and
the manufacture of milk products on an industrial scale.

In developed dairying countries such as the U.S.A., the year 1850 is seen as the dividing
line between farm and factory-scale production. Various factors contributed to this
change in these countries, viz. concentration of population in cities where jobs were
plentiful, rapid industrialization, improvement of transportation facilities, development of
machines, etc. whereas the rural areas were identified for milk production, the urban
centers were selected for the location of milk processing plants and product
manufacturing factories. These plants and factories were rapidly expanded and
modernized with improved machinery and equipment to secure the various advantages of
large-scale production. Nearly all the milk in the U.S.A. before 1900 was delivered as
raw (natural) milk. Once pasteurization was introduced, it developed rapidly. Mechanical
refrigeration helped in the rapid development of the factory system of market milk
distribution.

In India, dairying has been practiced as a rural cottage industry since the remote past.
Semi-commercial dairying started with the establishment of military dairy farms and co-
operative milk unions throughout the country towards the end of the nineteenth century.

During the earlier years, each household in those countries maintained its ‘family cow’ or
secured milk from its neighbor who supplied those living close by. As the urban
population increased, fewer households could keep a cow for private use. The high cost
of milk production, problems of sanitation etc., restricted the practice; and gradually the
family cow in the city was eliminated and city cattle were all sent back to the rural areas.

Gradually farmers within easy driving distance began delivering milk over regular routes
in the cities. This was the beginning of the fluid milk-sheds which surround the large
cities of today. Prior to the 1850s most milk was necessarily produced within a short

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distance of the place of consumption because of lack of suitable means of transportation
and refrigeration.

The Indian Dairy Industry has made rapid progress since Independence. A large number
of modern milk plants and product factories have since been established. These organized
dairies have been successfully engaged in the routine commercial production of
pasteurized bottled milk and various Western and Indian dairy products. With modern
knowledge of the protection of milk during transportation, it became possible to locate
dairies where land was less expensive and crops could be grown more economically.

In India, the market milk technology may be considered to have commenced in 1950,
with the functioning of the Central Dairy of Aarey Milk Colony, and milk product
technology in 1956 with the establishment of AMUL Dairy, Anand. The industry is still
in its infancy and barely 10% of our total milk production under goes organized handling.

1.3 HISTORY OF INDIAN MARKET MILK INDUSTRY

Beginning in organized milk handling was made in India with the establishment of
Military Dairy Farms.

• Handling of milk in Co-operative Milk Unions established all over the country on
a small scale in the early stages.
• Long distance refrigerated rail-transport of milk from Anand to Bombay since
1945
• Pasteurization and bottling of milk on a large scale for organized distribution was
started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961),
Madras (1963) etc.
• Establishment of Milk Plants under the Five-Year Plans for Dairy Development
all over India. These were taken up with the dual object of increasing the national
level of milk consumption and ensuing better returns to the primary milk
producer. Their main aim was to produce more, better and cheaper milk.

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1.3.1 Operation Flood

The transition of the Indian milk industry from a situation of net import to that of surplus
has been led by the efforts of National Dairy Development Board's Operation Flood.
Programmed under the aegis of the former Chairman of the board Dr. Kurien. Launched
in 1970, Operation Flood has led to the modernization of India's dairy sector and created
a strong network for procurement processing and distribution of milk by the co-operative
sector. Per capita availability of milk has increased from 132 gm per day in 1950 to over
220 gm per day in 1998. The main thrust of Operation Flood was to organize dairy
cooperatives in the milk shed areas of the village, and to link them to the four Metro
cities, which are the main markets for milk. The efforts undertaken by NDDB have not
only led to enhanced production, improvement in methods of processing and
development of a strong marketing network, but have also led to the emergence of
dairying as an important source of employment and income generation in the rural areas.
It has also led to an improvement in yields, longer lactation periods, shorter calving
intervals, etc through the use of modern breeding techniques. Establishment of milk
collection centers and chilling centers has enhanced life of raw milk and enabled
minimization of wastage due to spoilage of milk. Operation Flood has been one of the
world's largest dairy development programmes and looking at the success achieved in
India by adopting the co-operative route, a few other countries have also replicated the
model of India's White Revolution.

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 Production in India
Year Production (Million Tones) Per Capita Availability
1993-94 55.7 (gms/day)
178
1994-95 58.0 182
1995-96 60.6 187
1996-97 63.8 194
1997-98 66.2 197
1998-99 69.1 202
1999-00 72.1 207
2000-01 75.4 213
2001-02 78.3 217
2002-03 80.6 220
2003-04 84.4 225
2004-05 86.2 230
2005-06 88.1 231
2006-07 90.7 229
2007-08 94.6 220
2008-09 96.2 224
Source: State/UT Animal Husbandry Departments, 2008-09
*Source: Production Estimate of MILK, EGG, MEAT and WOOL of the year 2007-

1.4 MAJOR COMPITITORS OF MILKFED PUNJAB

1.4.1 Amul
Amul was formally registered on December 14, 1946. The brand Amul, sourced from the
Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in
Anand. Some cite the origin as an acronym to (Anand Milk Producers Union
Limited).The Amul revolution was started as awareness among the farmers. It grew and
matured into a protest movement that was channeled towards economic prosperity.

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1.4.2 Gujarat Cooperative Milk Marketing Federation
In 1954, Kaira District Co-operative Milk Producers’ Union built a plant to convert
surplus milk produced in the cold seasons into milk powder and butter3. In 1958, a plant
to manufacture cheese and one to produce baby food were added. Subsequent years saw
the addition of more plants to produce different products. In 1973, the milk
societies/district level unions decided to set up a marketing agency to market their
products. This agency was the Gujarat Cooperative Milk Marketing Federation
(GCMMF). It was registered as a co-operative society on 9 July 1973.

1.4.3 Nestle
Nestle relationship with India dates back to 1912, when it began trading as The Nestlé
Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market.
After India’s independence in 1947, the economic policies of the Indian Government
emphasized the need for local production. Nestlé responded to India’s aspirations by
forming a company in India and set up its first factory in 1961 at Moga, Punjab, where
the Government wanted Nestlé to develop the milk economy. Progress in Moga required
the introduction of Nestlé’s Agricultural Services to educate advice and help the farmer
in a variety of aspects. From increasing the milk yield of their cows through improved
dairy farming methods, to irrigation, scientific crop management practices and helping
with the procurement of bank loans. Nestlé set up milk collection centers that would not
only ensure prompt collection and pay fair prices, but also instill amongst the community,
a confidence in the dairy business. Progress involved the creation of prosperity on an on-
going and sustainable basis that has resulted in not just the transformation of Moga into a
prosperous and vibrant milk district today, but a thriving hub of industrial activity.
Nestlé has been a partner in India's growth for over nine decades now and has built a very
special relationship of trust and commitment with the people of India. The Company's
activities in India have facilitated direct and indirect employment and provides livelihood
to about one million people including farmers, suppliers of packaging materials, services
and other goods.

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The Company continuously focuses its efforts to better understand the changing lifestyles
of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and
Wellness through its product offerings. The culture of innovation and renovation within
the Company and access to the Nestlé Group's proprietary technology/Brands expertise
and the extensive centralized Research and Development facilities gives it a distinct
advantage in these efforts. It helps the Company to create value that can be sustained over
the long term by offering consumers a wide variety of high quality, safe food products at
affordable prices.
Nestlé India manufactures products of truly international quality under internationally
famous brand names such as NESCAFE, MAGGI, MILKYBAR, MILO, KIT KAT,
BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also
introduced products of daily consumption and use such as NESTLES Milk, NESTLÉ
SLIM Milk, NESTLE Fresh 'n' Natural Dahi and NESTLE Jeera Raita.
Nestle India is a responsible organization and facilitates initiatives that help to improve
the quality of life in the communities where it operates.
Today, Nestle is the world's largest and most diversified food company. It has around 2,
50,000 employees worldwide, operated 500 factories in approximately 100 countries and
offers over 8,000 products to millions of consumers universally.

1.4.3 MOTHER DAIRY

Since 1974 millions of consumers in Delhi have been walking up to the goodness and
freshness of mother dairy milk. Mother Dairy has established itself as an integral part of
their lives be it in terms of providing pure wholesome milk or rich, delicious milk
products.
The drop logo, used by cooperatives across the country is a symbol of purity and
freshness, qualities which Mother Dairy over the years has come to be closely associated
with.
Available at a store nearest to you be it your local kirana store, the largest supermarkets
in the city or there very own exclusive milk shops .is it any wonder that mother dairy
enjoys almost 75% of the market share for branded milk in Delhi and more importantly
that special place in every life.

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1.4.3.1 Products of Mother Dairy
1. Milk
2. Ice- Cream
3. Ghee
4. Butter
5. Cheese
6. Dahi
7. Lassi

8. Flavored Milk

1.5 MILK FED

Historical background

The Punjab State Cooperative Milk Producers’ Federation limited popularly known as
Milk fed Punjab came into existence in 1973 with a twin objective:

• To providing remunerative milk market to the Milk Producers in the State by

value addition and marketing of produce on one hand and

• To provide technical inputs to the milk producers for enhancement of milk

production on the other hand.

Although the federation was registered much earlier, but it came to real self in the year
1983 when all the milk plants of the erstwhile Punjab Dairy Development Corporation
Limited were handed over to Cooperative sector and the entire State was covered under
Operation Flood to give the farmers a better deal and our valued customers better
products. Today, when we look back, we think we have fulfilled the promise to some
extent. The setup of the organization is a three-tier system,

• Milk Producers Cooperative Societies at the village level

• Milk Unions at District level

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 • Federation as an Apex Body at State level.

MILKFED Punjab has continuously advanced towards its coveted objectives well
Defined in its by laws. A place is called verka. For away from the din and the madding
pace of the city there rests, near Amritsar, a sleepy village is called verka. It is a prefect
picture of health and happiness. It is the first milk plant of verka.

1.5.2 Number of group companies & products manufacture/offered by them

Milkfed has a strong value addition base addition base though its 11 District cooperative
milk producer’s unions and 40 chilling capacity of about 15 Lac liters per day, all of
whom have attained self sufficiency or are on the thresh-old of attaining it.

Ghee, S.M.P., W.M.P. Butter, Paneer, Milk-Cake & S.F.M

Raseela, Ice-Cream, Pinni, Milk Cake

1.5.3 Mission of Corporate

To become the market leader in market of milk and milk products.

1.5.4 Objective

Direct approach to consumer and producer and to avoid middleman. (By the
farmers, of the farmers and for the farmer’s organization.)

1.5.5 Achievements
On the basis of quality with efficient administration, MILKFED has not only established
new mile stone of providing services to Dairy farmers but scaled new heights in
delighting esteemed customers also. This has resulted into tremendous achievements in
all fields.

1.5.6 Turnover

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The annual turnover of Milkfed which was Rs.1150 crores in the year 2009-10 has hit the
level of Rs.1389 crores in the year 2009-10. Turnover (Rs. in Crores)

1.5.7 Marketing of Milked

Milked is a serving nation wide consumer through its net work of Regional offices and
strong Distribution channels. Milkfed markets a wide Variety of Products which include
liquid milk, skimmed milk powder, whole milk powder, infant food, ghee, butter,
cheese, lassi, SFM, Ice Cream, Malted food Verka Vigour etc. etc. The annual turn over
of Milkfed has crossed Rs 668 crores. Verka is a brand leader in milk powders
particularly in northern eastern sectors and SMP marketed by Milkfed commands a
premium price over powders manufactured by competitors who include multi-national as
well as private trade and other Cooperative Federations. Now Verka has arrived on the
sheer strength of its quality, freshness and purity. And of course, its home made taste.
And all this, at the most affordable prices. To people today, Verka is the part of their
daily lives.

1.6 EXPORT OF MILK PRODUCTS

With competition in the national market zooming up efforts to export products have been
made. Milkfed has established its ghee market in Middle East Market. Verka ghee
reaches all the emirates and is available almost in all super markets. The penetration is so
deep that verka ghee is available in far off labor camps. In addition to ghee, SMP was
also exported to Asian Countries like Philippines, Bangladesh and Sri-Lanka. Verka Malt
Plus (Malted Milkfood) has also been exported to Bangladesh.

1.7 QUALITY ASSURANCE PROGRAMME

Quality Assurance Programme (QAP) which is a part and parcel of Dairy Plant
Improvement Programme (DPIP) was taken up in Gurdaspur Milk Union with the
Technical guidance from NDDB. The main objective of the programme is to
improve efficiency of Plants coupled with loss management to bring down the

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cost of production, im-prove the quality of milk and milk products
manufactured to ameliorate the general hygienic and house keeping standards.

1.8 MILKFED’S NETWORK

MILKFED has its milk unions in many districts of Punjab. These district unions are:

i) Amritsar ii) Bhatinda iii) Bassi Pathana

iv) Chandigarh v) Faridkot vi) Ferozepur
vii) Gurdaspur viii) Hoshiarpur ix) Jalhandhar
x) Ludhiana xi) Patiala xii) Ropar
xiii) Sangrur

The plants in all these unions are being run under the VERKA

1.9 ORGANISATION PROFILE

1.9.1 Capacity Of Gurdaspur Milk Plant

The plant was designed to handle 150,000 liters per day of milk drying and 10, 0000
liters per day as liquid supply. Since inception of the plant. There was no charge in the
handling capacity until April 2004. Due to good potentiality of milk in area, efforts were
always made to enhance its handling capacity to 1, 00,000 liters milk per day. Under the
guidance of Milk Federation Punjab the Registrar Cooperative Societies Punjab had
sanctioned a sum of Rs.140 core from the cooperative development fund. These funds are
being utilized at the earliest. On expansion, the plant will handle 1, 00,000 liters of milk
per day. The refrigeration capacity will also increase to 1.5 lacs liters of milk per day.
At present because of loan from Cooperative societies the handling capacity of Milk in
Milk Plant Gurdaspur is 1, 00,000 liters per day and freezing capacity of milk is 1.5 lacs
liters per day.

1.9.2 Controlling Authority

The milk plant Gurdaspur was originally setup by Punjab Government but in 1960 the
control was passed on the Punjab Diary Development corporation (PDDC) &

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subsequently its management was passed to Milkfed w.e.f 9th April 1983. The
Gurdaspur District cooperative Milk Producers union limited was registered on 28 th
April. Union has started its business on 1st July 1988 with the complete control of
plant to the Union. However all the assets and liabilities of the Punjab.
Government and Punjab Development Corporation (PDDC) at Milk Plant, Gurdaspur
was transferred to Union w.e.f 1st April 1994. The Union has an elected Board and
Managing Director is on deputation from Milkfed. The officers in the cadre of deputation
from Milkfed.

1.9.3 Milk Procurement at Milk Plant

The procurement system of this milk plant is well organized. Milk procurement is made
though Milk Producers Co-operative societies which are spread over whole of the
Gurdaspur. Under these societies there are milk producer members. These members are
chosen by village level societies from each village. These members choose a secretary
who collect milk from milk producers and sell to the plant and earn some percentage of
commission. Milk is collected twice a day.
Up to June 30, 2002 Milk Plant Gurdaspur has 738 functional societies out which 493
are working.
While collection of milk, the fat contents of milk are properly tested in order the check
the quality of Milk because the price is paid according to fat contents. CERBER &
MILKOTESTS are the tests applied to test protein and fat contents in milk.

1.9.4 Chilling Station

There are three chilling station working under this plant; these are
Batala, Kahunwan, and Tugalwada.

The motive for opening these stations is to save the milk. The life of the milk is only five
hour after it is collected. Some villages are more away from Gurdaspur plant &
transportation time is much higher than this time. So these chilling stations are opened to
chill the collected milk. So the life of milk is increased against 5 hour.

1.9.5 Air Water Pollution Control

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The pollution created by boiler’s smoke & effluent discharge is checked as per the norms
of the. Punjab Pollution Control Board, Necessary. Device have been installed with the
start of these equipments the BOD of treated water being discharged into Municipal
sewer is less than 30 i.e. well within norms. The treated water is used for irrigation
purpose on the land of Milk Plant. Thus reducing pumping of water from earth strata. The
cost of this is 27, 00,000.

1.9.6 General Manager

G.M. is the topmost authority in particular milk plant. He is the in-charge of affairs of
union in process provides due price to milk producers and assures good quality to the
consumer at the most reasonable price.
G.M. who is duly assisted by mangers of various line functional departments plus staff to
carry out his task and any problem related to different departments are dealt by him.

The name time periods of the G.M. are as follows:-

1. Dr. Virban Singh 1984 — 89
2. S. Surjit Singh Bhullar 1989 — 90
3. Sh. K.K. Bali 11-06-90 to 04-10-90
4. S. Amrik Singh Dec 1990 to Dec 1993
5. Sh. G.S Dhari Dec. 1993 — 94
6. S. Amrik Singh 01-09-1994 — 98
7. Sh. S.K. Mahajan 13-09-94 — 98
8. S. Amarjit Singh 1998-2002 — 31-03-2002
9. S.R.S. Kalra 01-04-2002 -- 31-03-2003
10. S. Kuldeep Singh 1-04-2004 – till now

The aim of marketing is to understand the needs of consumer and provide the market
with appropriate products to fulfill those needs. Milk plant, Gurdaspur has not a separate
Marketing of products is done by sale department. The motto of sales is not just selling
the products and fulfills consumer needs but making consumer crazy about Verka.

SALES DEPARTMENT HIERARCHY

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 Manager (Sales)

Supervisor

Field 1 Sales Field 1 Sales

RepresentativeRepresentative
(Out door sales) (City supply)
Clerk

The overall marketing is controlled by Milkfed, Chandigarh but all the dispatches are to
be made by Milk Plant. Sales department appoints agents, which are also called as
Dealers for supply of Milk products. At present city supply is done though 24 agencies
and overall supply is done through 60 agencies.
Verka Milk and Milk Products are also sold through Verka Milk Bars. Milk bars of the
Gurdaspur Milk Union are categorized as under:-

1. Milk bars owned and managed by milk unions.

2. Milk bars on rent and managed by milk unions.

3. Milk bars owned by Union and managed by private agencies (licensee).

Milk bars run on two shifts basis. One of the office staff is responsible for deploying staff
in case of leave.

At present Verka Milk plant Gurdaspur has two Milk Booth, one in Gurdaspur city
for city supply and one is Pathankot.

The overall delivery of milk is made through delivery trucks. The whole area is
divided into 9 routes for delivery of milk. These 9 routes involves 4 routes to

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Pathankot, l to Gurdaspur city supply. 1 to Jammu 1 to Thene -Dam and 2 to
Batala cum Army.

Marketing of Milk products is done both by plant and the head office generally
these products are sold through dealers. The dealers supply the products to
different retailers and also sell them directly to consumer.

1.10 MARKETING MIX OF MILKFED

Product, price, place and promotion are the core components of marketing objective. So it
is essential to have complete knowledge of these aspects of an organization. So we
discuss these 4 points of Verka’s Marketing mix in detail.

1. Product Mix
There are 15 products of Verka Brand which are being manufactured at different Verka
Plant in Milk Plant Gurdaspur six Verka products are manufactured.
Milk, Ghee, Curd, Paneer, Kheer and Dry milk are being produced at Gurdaspur Milk
Plant other milk products like table butter. Processed Cheese, SFM, Lassi, Mango Rasela,
Ice Cream, etc. are being produced at sister concern plants of Mohali, Patiala and
Jalandhar.

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The following table shows various details of products composition products packing is
covered under price mix.

PRODUCT COMPOSITION

Product Composition

Full Cream Milk (FCM) 6.5% Fat + 9% S.N.F.

Standard Milk (SM) 4.5% Fat + 8% S.N.F.
Double Toned Milk 1.5% Fat 9% S.N.F.
Lassi
(DTM) Toned Milk + Water + Sugar = Curd
Kaju Pinni Milk+Fat+Wheat+Sugar+Sugi+Besan+Edible Oils +Flavor
Butter 80% (Min) Fat +16 Moisture+ 3% salt + 0.1% Max
Paneer 26.27% Fat + 45% Moisture + S.N.F.
Curd Toned Milk + S.N.F.
Pure Ghee 99-99.8% Fat 0.5% Moisture (Max)
Mango Rasela Water + Sugar + Mango Pulp + Citric Acid + Vitamin C.
S.F.M. Sugar + D.T.M.
W.M.P. 26%Fat + 26%Protein + 37%Lactose + 70%Mineral
S.M.P. Fat 0.5% (Max) + Moisture 5%
Milk Cake Fat (19%) (Min) + Sugar 26% (Max)
Ice Cream Fat 10% (Min) + Sugar 15% (Max)

2. Price Mix
Pricing Policy
The decision about the liquid milk pricing in taken by a Committee of the following
persons:-
1. Chairman of the Milk Union
2. One Board of Director
3. General Manager (Final Approval Authority)
4. Manager (Finance & Accents) and

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 5. In-charge Sales & Marketing
The main criteria for pricing are the price charged by neighboring milk union &
profitability of the concern. The Gurdaspur market in quite price sensitive. Price payable
by market is also taken into consideration while fixing price is set in consonance.
Here under, the table is showing the prices of various products which are charged by
Verka milk plant Gurdaspur with basis rate, sales tax F.O.D. distributor margin retail
margin maximum retail price & milk bar price. Rates are listed according to packing in
the table.

3. Place Mix
Distribution channel

The Gurdaspur Milk Plant has a particular dispatch section which is response for
distribution of milk. The milk union has appointed private agencies who are also called as
dealers for supply of milk & milk production to ultimate customer. There are two types of
agencies one, which operate from structure.

Constructed & allotted by Municipal Corporation & second which operate from their own
shops. At present there are 24 dealers of Verka products in Gurdaspur city & 56 in
overall conferred.

Verka inspector or field sales representatives cover dealers. They visit different routes
everyday & collect demand of the dealers. These inspectors or field sales representative
distribution the Verka products directly to the dealer’s collection of payment for same are
also their reasonability.

Gurdaspur Milk Plant is increasing its private dealership and sale through it own milk bar
by providing good commission and competing with private dairies and other competitors
and by motivating its field staff. But some problems are undertaken to field staff.
1. Unsold milk is not accepted back in any case.
2. The spoilage if not genuine is not entertained.
3. The return of spoil milk will be accepted only if there is any mass compliant.
4. The leaked milk packets are taken only after quality check.
So the filed staff had to deal hardly in presence of old policies of sale and marketing.

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Transportations
Milk plant Gurdaspur use private transporters as well as union’s vehicle for supplying
milk products of Verka to dealers to the city Verka plant.
Floats a notice for hiring transportation. The tender which has least cost of transposition
is accepted. Dealers generally used their own transportation for supplying the Verka
products to different retailers though Auto Rickshaw etc.

4. Promotion Mix

Advertising

Being Government sector organization advertising is usually given a limited budget

which is 2 paisa by milk plant. Gurdaspur and 2 paisa by dealer. Some grant is given by
National Dairy Development Board (NDDB) also Verka dealers are provided with
banners, sign boards and Retail shops are painted as Verka Milk Products to advertise
Verka Products.

Sales Force
Field sales representatives or sales inspectors work as a sale force of the milk
plant Gurdaspur. They sell Verka products on their respective routes and also advertise
Verka product with their pained vehicles. Sales inspectors are also the eyes and ears of
Verka plant. They collect information about the demand of Verka products and Provide
useful information to sales department for boosting the sales of Verka product

Future Planing
In the future planning, there is a target to supply 90000 liters of Verka milk in Jammu and
its surrounding township. The same quantity of liquid pasteurized & vitaminsed milk is
also being supplied in the area of Chamba, Dalhousie and Dharamshala etc.
The future efforts are to improve for good production as well as manufacturing practices
which lead to milk no lead residue and less than I la/ml of SPM to meet the bench mark
specified in codex standard.

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An advertisement campaign is being organized though the followings for education and
awareness of Verka milk products to the consumers for quality in particulars:-

• Animated advertisement boards at Batala and Gurdaspur.

• Destruction of notebook stickers among children in school in public as well as

slum area to them aware of Verka milk & milk products.

• Shop wall painting & glow sign boards are being affixed in various towns and
cities covered under the programme for public awareness.

1.11 DETAILS OF OPERATIONS

a) Procurement- The milk plant, Gurdaspur procure milk through co-operative
societies. At the present the plant has the 738 societies. Firstly milk is collected by
these societies then sent the milk to the milk plant Gurdaspur in two times, morning
and evening. The milk producers receive rate of milk from milk plant on the basis of
fat.There are three milk-chilling centers at Batala, Kahunwan, and Tugalwada. Firstly
milk is received at the chilling center and after chilling the milk. It is send to the milk
plant, the purpose to setup the center are that, the societies are for away from the milk
plant and milk is perishable in nature so to avoid the wastage of milk, the chilling
center were setup. Firstly milk is received in dock through tempo in higher basis of
routes.

There are 3 seasons of milk –

Flush, average and Lean.

The lean period is during April and July and this period supply of milk received
in less quantity.

The average is during August to November and in this period the supply of milk
received is average.

The flush is in winter and the milk is highly produced.

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 b) Reception of milk- Reception of milk is done at the dock. Dock is like
a station. The milk plant has two Docks, firstly milk is reached in the huge
quantity, after this process milk is sent to the laboratory to find out fat and
S.N.F. contents, then milk cans are washed by the machines and again
these cans are kept in the carriers after this process tempo sheets are
prepared. The numbers of milk cans of buffalo and cows milk are recorded
on these sheets are sent to the societies for the information of quantity of
milk.

c) Processing All the received is passed on to the tank lying under the
weighing bowl. Then the milk is immediately chilled and pasteurized.
Pasteurization is a process which was found by Lous Pasteur. All the get
during pasteurization.HTST (High Temperature Short Time) technique is
followed where milk is immediately heated at 71’C, held for 16 seconds
and then chilled down immediately at 4’C. After regeneration to 17’C, or !
8’C, milk is sent to the required area for e.g. city supply, powder section,
ghee section etc. In fixed production where the cream is separated and
further process is carried on as required.

1.11.1 Market served Domestic/Foreign

The success of a concern lies not only in production, but also mainly in successful
marketing.

“Marketing is the process getting the right goods to the right consumers at
the right place at the right price”.

In Verka Milk Plant Gurdaspur three types of tetra packs and other products are
marked under the brand name “VERKA”, Gurdaspur milk plant is solely
responsible for the marketing of fluid milk products are marked by “the Punjab
state co-operative milk producers union ltd.”.

21
1.11.2 Marketing of tetra packs

In verka milk plant, Gurdaspur tetra packs are not manufactured here. The tetra
packs are making in the Chandigarh and also distribute by the verka milk plant,
Gurdaspur. All types of tetra packs are sale through distributors and any person
gets the supply direct from the verka milk plant Gurdaspur directly. There are two
only two distributors of tetra pack.

One distributor has to follows the followings rules:

1. He has to pay the all payment in cash. There is no any credit scheme.

2. The total margin is 8% for the distributor, 16 % for the retailers.

Return of tetra packs :Due to the expire time of tetra pack is 6 month, good
packing and fresh supply from Chandigarh there is no replacement of the tetra
packs.

Exports Milk union is famous all over the country and outside the country for its
quality of milk and milk products. It holds international quality certificates ISO
9002 and IS-15000 (HACCP). Due to these certificates its products are easily
acceptable in the international market. It export Ghee to Dubai but no any tetra
pack is export.

Other information

Products Manufactured and marketed by Milk Union, Gurdaspur

Milk plant, Gurdaspur produces a variety of products which are available in

different packing. Raw material for all these products is milk which procured
from milk producers.

Products manufactured by milk plant are:

1. Ghee

2. Butter

3. Skimmed Milk Powder(SMP)

4. Paneer

5. Dry milk

22
Besides these products milk plants sells various products procured from plants. It
charges commission on the sale of the products.These products are as under:

1. Flavored Milk

2. Flavored Lassi

3. Mango Rassila

4. Kheer

5. Kaju Pinni

6. Ice Cream

1.11.3 Aims of Milk Union

Every organization is formed for achieving some objectives. Setting of objectives and
aims serves as guidelines for excellent or smooth working of the concern. The verka milk
plant, GURDASPUR was constituted to fulfill the following aims.

1. To uplift social and economic status of the milk producers.

2. To develop dairy as an industry allied to agriculture.
3. To procure milk and execute marketing efforts so that milk producers get
good prices of their milk.
4. To provide better quality cattle feed at reasonable prices.
5. To increase the bargaining power of milk producers at their doorsteps.
6. To provide veterinary aids to animals of milk producers at their Doorsteps.
7. To create employment opportunities for rural youth by milk Production
activities.

1.12 MILK PLANT’S SALIENT FEATURES

Verka Milk Plant has certain salient features through which it is considered as top most
Milk Plant in Northern India. Some of the silent features are given below:

1. First Milk Plant In India to get ISO-9002 International quality Certification mark.

23
2. Milk procurement highest among all the Unions in the State.

3. Milk rate paid to the producers among all the unions highest in the state.

4. 100% Milk Producer’s Co-operative societies are in profit.

5. Milk procurement per society / per day highest among all the Unions in the state.

6. Aggregate profit of the societies in any year is the maximum among all the Unions in
the States.

7. Customer satisfaction and consistency in quality is the key thrust area of the
organization.

8. Number of A.I Cases maximum among all the Unions in the States.

9. Milk transportation cost lowest among all the Unions in the States

10. Number of sick animals treated highest among all the Union in the state.

11. Cattle feed sold to societies are maximum.

12. F.M.D vaccination maximum among all the Unions in the State,

13. Milk Chilling cost lowest among all the Unions in the State.

14. Capacity utilization is maximum on yearly basis.

15. Fuel cost per kg milk is lowest among all the Unions in the State.

16. Embryo transfer technology introduced in the field for the first time Northern India.

17. Electricity cost per Kg. Milk is lowest among all the Unions in the State.

18. Leading Unions to state cooperative development programmed to strengthen the

cooperative base at village level.

19. Annual profitability highest among all the Unions in the state.

ISO-9002, IS-15000(HACCP):- Milk Plant GURDASPUR is India’s first Milk Plant to

get this certificate of international quality standards. It is provided to a concern, which
has established specialization in quality and prices and able to use its full installation
production capacity.

24
IS-15000(HACCP):- Milk Plant GURDASPUR has also got these international quality
certificates, which allow it to sell its products at international levels. It actually called.
“International Standard-15000 (Hazard analysis and Critical Control Point).

1.13 ORGANIZATIONAL STRUCTURE

In the organization of milk plant, Gurdaspur, the test of management and direction of
subordinates of subordinates is divided according to the type of work involved. All
activities are grouped together according to the certain function like production,
marketing, finance, personal etc. and put under the charge of different persons. The
person in-charge of a function is a specialist in it and brings out the best in him.

The members of the milk societies select through the top management of Milk Plant.
Now the question arise that how the milk societies are formed. So firstly, the field staffs
of Milk Plant visits the various villages for encouraging people to make cooperative
department to purchase milk from villages. Minimum 35 members are required for
making a society. To become the member of the society a person has to pay Rs.10 as
membership fees and other purchase a share of Rs.1. At present there are 72500 members
of the milk societies. Organizational structure is a systematic combination of people
function and physical facilities. It constitutes a formal structure with defined authority
and clear responsibilities. Each and every person is given a job and then authority is
assigned to him for the job, he is made responsible for the job. The structure and process
by which a cooperative group of human beings the organizing structure aims at saying.”
EACH ONE FOR JOB AND JOB FOR EACH ONE” Organizational structure of milk
plant: Its board consists of 18 directors. They appoint General Manager and chairman.
Then there are different Departmental heads like Accounts Manager, Production
Manager, Marketing Manager & Purchase Manager etc. these heads have deputy
manager for there assistant. Then each department has different employees at
departmental level. Verka Milk Plant is well organized. It helps in efficient running of
concern.

25
 Chapter II

Review of Literature

26
 Review of literature

Amp (1991) studied the Consumers' variety seeking tendency (intrinsic desire for
variety) is recognized as an important characteristic that influences consumers' electronic
choice behaviour. Empirical studies in economics and marketing have not specifically
focused on this consumer characteristic, but instead have approached the issue from the
overt behaviour side. Given the great many factors that may underlie variation in
behaviour, intrinsic desire for variety cannot be validly derived directly from observed
behaviour. Instead, a measure specifically tapping this consumer characteristic is
required. In this paper a scale (VARSEEK) for measuring consumers' variety seeking
tendency with respect to foods is developed. The construct validity of this VARSEEK-
scale is investigated extensively and managerial implications are discussed

Mukharje (1995) studied that two-equation bivariate probit model was formulated to
analyze simultaneously consumers' preferences and attitudes toward organically grown
produce (OGP). Results suggest that consumers who are nutritionally conscious,
concerned about the use of pesticides, and wanting produce tested for freedom from
residues would have a higher Propensity to prefer OGP. Among the potential buyers,
consumers who are white, better-educated, and have large families are more likely than
others to tolerate sensory defects. The study suggests that testing and certification,
sensory qualities, and competitive pricing are the most important factors that would
enhance the marketing potential of OGP

Chandersekaran (1996) The researcher research on the topic “CONSUMER

BEHAVIOUR AND BRAND PERFORMANCE TOWARDS THE ONIDA T.V” the
objective of the research was to study consumer satisfaction and brand loyalty of the
respondents toward the Onida T.V. For this researcher collected primary and secondary
data from the sources. The research methodology adopted by the researcher includes chi-
square test, percentage, arithmetic mean, correlation, and variance. The researcher

27
founded that favorable appreciation response was received from the customers. Study
also certifies that consumer behavior is unpredictable one in any kind of the market

Kathirvel (2007) The researcher research on the topic “CONSUMER BEHAVIOUR

AND BRAND PERFORMANCE TOWARDS THE ONIDA T.V” the objective of the
research was to study consumer satisfaction and brand loyalty of the respondents toward
the Onida T.V. For this researcher collected primary and secondary data from the
sources. The research methodology adopted by the researcher includes chi-square test,
percentage, arithmetic mean, correlation, and variance. The researcher founded that
favorable appreciation response was received from the customers. Study also certifies
that consumer behavior is unpredictable one in any kind of the market.

Yadav (2008) The research on the on the topic “CONSUMER SATISFACTION IN SBI”
the objective of the study is to made analyse with regard to the assessment of services
provided by SBI to the customers. The research methodology used by researcher includes
collection of primary and secondary data. Primary data has been collected from the
existing customers of SBI. Data collected has been analyzed by researcher through tables,
graphs and pie charts. By the researcher found that the expectations of customers of SBI
are met to a limited extent.

Reddy (2009) The researcher research on the topic “CUSTOMER SATISFACTION OF

NOKIA MOBILE HANDSET USERS” the objective of the research is to study the
satisfaction level of the customers, awareness of customer about the products and to
predict the consumer behavior. For this researcher collected primary data and analyse it
with the help of tables, charts, bar graphs and pie charts. The researcher found that the
product awareness about the nokia product is high as compared to others. It is also
concluded that the consumer is influenced to buy nokia due to its brand image and also
the satisfaction level of customers of nokia is high as compared to the others handsets in
market.

28
 Chapter - III

Need, Scope and Objectives

of the Study

29
3.1 Need of the study

In today’s time there is serve competition in every field and the milk industry is also
facing a lot of competition a we know competitor can pause some threats to the
organization as well as they provide us some opportunities. An organization can store
over its competition either by enhancing the quality of the products, reducing the price,
heavily spending promotional activities or having a effective distribution network.
The project was concerned to find out which were the other competitors of the verka in
Gurdaspur. The citizens having awareness regarding the tetra packs of the verka and
which were the products used by the consumers and how often consumer use the tetra
packs of the verka. How much they were satisfied with the tetra packs of verka? In which
factors the citizens had the complaints and want improvement?

3.2 Scope of the study

This study is limited to Gurdaspur and Pathankot city only.

3.3 Objectives of the study

Objectives of the study are as follows:

• To analyze Market share of verka milk in comparison to

competitor.

• To study the perception of consumer at Distt. Gurdaspur regarding

the selected products of verka.

• To study the preference of retailers regarding the selected products

of verka.

• Selected products are:-

Flavored Milk

Flavored Lassi

Mango Rassila

Kheer

30
 CHAPTER-4

RESEARCH
METHODOLOGY

31
.
RESEARCH METHODOLOGY

Research refers to a search for knowledge. This research defines the problems of retailers
and perception of citizens.Research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions
to determine weather they fit the formulating hypothesis. It presents the research design,
sampling procedure, tools of investigation, collection of data and the limitations of the
study.

4.1 RESEARCH DESIGN

This research was descriptive and conclusion oriented research.
a) Descriptive Research:
The research was a descriptive research as it was concerned with specific predictions,
with narration of facts and characteristics concerning individuals, groups or situations.
b) Conclusion Oriented Research:
The research was conclusion oriented because this research aimed at determining the
perception of consumers and retailers preference towards verka products.

4.2 SAMPLING DESIGN

A sampling design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher adopts in selecting items for the
sample. The following factors have to decide within the scope of sample design:

4.2.1 Universe: Universe refers to the total of the units in field of enquiry. The universe
comprises of two parts as theoretical universe and accessible universe. The theoretical,
accessible and Target universe in the study is given below.
• Theoretical Universe: It includes all the people who are using verka products
throughout the universe.

32
• Accessible Universe: It includes all the people who are using verka products in India.
• Target Universe: Universe of the study included consumers and retailers in Distt.
Gurdaspur.

4.2.2 Sampling Frame: Sample frame refers from where the questionnaires are to be
filled. Our sample frame consists of consumers and retailers.

4.2.3 Sample Unit: In this research project sampling unit was the consumers and retail in
Gurdaspur district.

4.2.4 Sample Size: A sample of minimum respondents was selected. An effort was
made to select respondents evenly as regard their gender. The survey was carried out on
100 consumers and 50 retailers.

4.2.5 Sampling Techniques: The sampling techniques used are convenient technique
and simple random sampling technique.

• Convenient Technique: A non-probability sampling technique that attempts to

obtain a sample of convenient elements. The selection of sampling units is left
primarily to the interviewer.
• Simple Random Technique: A probability sampling technique in which each
element in the population has a known and equal probability of selection. Every
element is selected independently of every other element and the sample is drawn by
a random procedure from a sampling frame.

4.3 SOURCES OF DATA COLLECTION

There are two types of data sources. These were:
4.3.1 Secondary data:

Secondary data are those which have already been collected by someone else and which
have already been passed through the statistical process. In this research project
secondary source used were various books, magazines, journals and websites.

33
4.3.2 Primary data:

Primary data are those, which are collected afresh and for the first time, and this is
original in character. For the fulfillment of this research project the primary data was
collected through surveys. Survey was done personally with an appropriate structured
questionnaire consisting of close ended questions and statements based on likert scale.

4.4 DATA ANALYSIS

4.4.1 Tools of Presentation:

It means what all tools were used to present the data in a meaningful way so that it
becomes easily understandable. In this research tools used were tables and graphs.
4.4.2 Tools of Analysis:
In this research the tools of analysis used were Factor Analysis and Chi-Square Test
along with basic statistics i.e. Percentages and Average Mean.

4.5 LIMITATIONS OF THE STUDY

The present study has been carried out with the following limitations:
• Inadequate Data: The data provided was not sufficient due to which the
generalizations cannot be made about the performance of verka.

• Time and Cost factor: There was difficulty of timely availability of published
and relevant data which led to increase in cost.

• Lack of Scientific Method: The lack of scientific training in methodology of

research was great impediment in the research program, which led to the delay of
research.

• No Response by the Respondent: Problem occurred in some sensitive issues like

getting information about the financial position of the respondent.

34
These limitations were faced as they were an integral part of the research. However,
they did not affect the quality of analysis and presentation of the findings.

CHAPTER-5
DATA ANALYSIS
&
INTERPRETATION

35
 Survey Results for the Consumer

Q1. Do you use the dairy products?

This question reveals how many respondents use dairy products.

TABLE 5.1- This table shows how many respondents use dairy products.

Attribute Number of Respondents Percentage (%)

Yes 100 100%
No 0 0%
Total 100 100%

Figure5. 1- Shows that all the respondents use dairy products.

120
No of respondents

100%
100
80
60
40
20 0%
0
Yes No

Interpretation- Since only those respondents who use manufactured dairy products were
questioned, therefore number respondents who use dairy products was 100. A person who
was not using the dairy products was not considered.

36
Q 2- Which Company’s dairy products do you use? Please rank?

This question answer’s which company’s products are preferred by the consumers on first
number.

TABLE 5.2- This table answers which company’s products are preferred by the
consumers on first number.

Company Number of Percentage (%)

Respondents
Verka 70 70%
Nestle 9 9%
Amul 7 7%
Reliance 14 14%
Total 100 100%

Figure 5.2- Answers which company’s products are preferred by the consumers on
first number.

70
60
50
Verka
40
Nestle
30
Amul
20
Reliance
10
0
Respondent
Interpretation - This question was asked to know the market share of dairy company. In
which 70% of consumer have selected the Verka, 9% Nestle, 7% Amul and 14%
Reliance.

37
Q 3- Please tick the name of the products used by you?

This question reveals how many consumers use which type of tetra pack of verka.

TABLE 5.3- This table shows how many consumers uses which type of
Tetra pack of verka.

Product Number of Respondents Percentage (%)

Flavored Milk 50 50%
Flavored Lassi 38 38%
Mango Rassila 7 7%
Kheer 5 5%

Figure 5.3- Shows how much consumer use which type of Tetra pack of verka.

50

40
Flavored Milk
30
Flavored Lassi
20 Mnago Rassila
10 Kheer

0
Respondent

Interpretation - The reason to ask this question was only to get the taste of the consumer
regarding the selected products of the Verka among above four most preferred tetra pack
is flavored milk 50% and least preferred is Kheer 5% only.

Q 4 – How often do you use the products of verka? Mentioned below

38
This question reveals how many consumers uses which type of tetra pack of verka how
often.
TABLE 5.4 - This table shows how many consumers uses which type of
Tetra pack of verka how often.

Products Once in More than once Once in a More than once Occasi
a week in a week month in a month -onally
Flavored milk 17 14 13 4 10
Flavored lassi 7 13 6 5 8
Mango rasilla 3 1 1 0 2
Kheer 0 0 1 0 3

Figure 5.4 - Shows how many consumers’ uses which type of tetra pack of verka
how often.

18
16
14
12 f.milk
10
f. lassi
8
mango rasilla
6
4 kheer
2
0
repondent
Interpretation - The reason to ask this question was to check the consuming pattern of
the consumer here again the flavored milk is most popular in a week 17 consumer want to
consume, 7 consumer flavored lassi, 3 mango rassila and nobody is interested in kheer. In
overall from this question we can conclude that flavored milk again most popular and
consumption is more in over all options.
Q 5- How much quantity do you use approximately in a month?

This question reveals how much quantity of tetra pack of verka used by the consumers in
the one month.

39
TABLE 5.5- This table shows how much quantity of tetra pack of verka used by the
consumers in one month.

Tetra pack 0-6 6-12 12-18 18-24 24--30 >30

Packets Packets Packets Packets Packets Packets
F milk 45 10 2 3 2
F lassi 27 7 3 1 3
M Rassila 5 1 1
Kheer 4 1

Figure 5.5- Shows how much quantity of tetra pack of verka used by the consumers
in the one month.

50

40

30

20

10

0
0-6 6--12 12--18 18--24 24--30 m-30

Interpretation - The propose was to know about the exact quantity consumption of the
tetra pack by dividing into six different options starting from 0-6 to more than 30. 45
consumer were those who take 0-6 packets in a month, 27 were those who consume lassi,
5 were those who were interested in consuming mango rassila and only 4 consumer had
replied for kheer.
Q 6 What do you perceive of the verka products?

This question reveals satisfaction level of consumers with the factors, which were related
to buying behavior.
Table 5.6 Shows satisfaction level of consumers with the factors, which were related
to buying behavior.

40
 FACTORS Response (%age)
Price 25
Quality 45
Brand 5
Taste 15
Availability 10

Figure 5.6 Shows satisfaction level of consumers with the factors, which were related
to buying behavior.

50

40 Price

30 Quality
Brand
20
Taste

10 Avability

Interpretation - The purpose of asking this question was to check the important factor of
the satisfaction. In which 45 consumer were satisfied with the product because of quality,
25 with prices, and 15 with taste.10 with the availability and only 5 who were satisfied
due to the brand name of Verka.

41
Q 7 – How much are you satisfied with verka ‘s products mentioned below?

This question reveals satisfaction level of the consumers with the tetra pack of verka.

TABLE 5.7- This table shows satisfaction level of the consumers with the tetra pack
of verka.

Tetra packs Respondent Percentage (%)

Flavored milk 52 52
Flavored lassi 37 37
Mango rasilla 8 8
Kheer 3 3

Figure 5.7 Shows how many respondents were satisfied with of tetra pack of verka.

60
50

40 F.milk
30 F. lassi

20 M. rassila
Kheer
10

0
Respondent

Interpretation - The propose of asking this question was to check the satisfaction level
regarding various selected by providing them five option out of only the high satisfied
was taken for the conclusion of the result product 52% were high satisfied, 37% with
lassi, mango rasilla 8% and with Kheer only 3%.

42
Q 8 – Do you have any complaint regarding the tetra packs of verka ?

This question reveals how many complaints respondents have regarding the tetra packs of
verka.

TABLE 5.8- This table shows how many complaint respondents have regarding the
tetra packs of verka.

Complaint regarding NO. OF Percentage (%)

RESPONSES
Quality 4 16.6%
Packing 4 16.6%
Availability 13 54.1
Taste 3 12.5
Total 24 100%

Figure 5.8- how many complaint respondents have regarding the tetra packs of
verka.

70
60
50 Quality
40
Packing
30
avalbility
20
Taste
10
0
Respondent

Interpretation - The reason to ask this question was only to make the improvement in
the particular area where they have lacking but only 24 consumers had given their
complaints. 3% had complaint regarding taste, 4% consumer had complaint with Quality,
4% regarding packing and the having problem with the availability.

Survey Results for the retailers

43
Q 1 – How much old your business mention below?

This question reveals how many years old the business of the retailers.

TABLE 5.9- This table shows how many years old the business of the retailers.

Years NO. OF RESPONSES Percentage (%)

0–5 8 16
5 – 10 9 18
10 –15 11 22
15 –20 5 10
20 – 25 5 10
25 –30 7 14
=> 30 5 10
50 100%

Figure 5.9- Shows how many years old the business of the retailers.

12
0--5
10
5--10
8
10--15
6 15--20

4 20--25
25--30
2
30--above
0

Interpretation - The main purpose of asking this question was only to know for how
long a retailer was in business and the range starts from 0-5 years and goes upto 30 years
and the sample size of the retailer were 50 retailers
Q 2 – Do you prefer keeping dairy products?

This question reveals how many retailers are keeping the dairy products.

TABLE 5.10- This table shows how many retailers are keeping the dairy products.

44
 Respondent’s response NO. OF RESPONSES Percentage (%)
Yes 50 100%
No --- ----
50 100%

Figure 5.10- How many retailers were keeping the dairy products.

120%
100%
100%

80%

60%

40%

20%

0%
Yes No

Interpretation - The purpose of asking this question was to check the retailer was in a
business of dairy products. And only those retailers were being considered in this that
was in dairy business. The entire 50 retailer were in dairy business.

45
Q3. Do you sell the product of following brands
This question reveals how many retailers are keeping the products of other companies.

TABLE 5.11-This table shows how many retailers are keeping the products of other
companies.

Brand No of retailers Percentage (%)

Nestle 10 20
Amul 15 30
Bartiania 5 10
Uttam 6 12
Reliance 10 20
Milkfood 4 8

Figure 5.11- Shows how many retailers are keeping the products of other
companies.

46
 15

NestleAmul
10 Britanina
Uttam
5 Reliance
Milk food
Amul
0
Respondent

Interpretation - The purpose of asking this question was to know the competitors brands
of the verka in the market and how many retailers were selling the competitors brand 10
deals with nestle,15 deals with amul, 5 with britania, 5 with uttam, 10 with reliance, and
4 with milkfood.

Q 4 – Do you keep the products of verka?

This question reveals how many retailers keep the products of verka.

TABLE 5.12- This table shows how many retailers keep the products of verka.

Respondent’s response NO. OF RESPONSES Percentage (%)

Yes 50 100
No 0 0
Total 50 100%

Figure 5.12– Show how many retailers keep the products of verka.

47
 50

40

30
Yes
20 No

10

0
Retailers

Interpretation - The purpose of asking this question was to know how many retailers
deal with the verka products. And only those 50 retailers were being taken for survey
who deals in verka products

48
Q 5 – Which of these products do you deal in?

This question reveals how many retailers keep the tetra packs of verka.

TABLE 5.13- This table shows how many retailers keep the tetra packs of verka.
.
Products NO. OF RESPONSES
Flavored milk 50
Flavored lassi 50
Mango Rasilla 15
Kheer 3
Others (milk, butter, dahi, 50
paneer etc.)

Figure 5.13– Shows how many retailers keep the tetra packs of verka

50

40
F. m ilk
30 F. Lassi

20 M. Rassila
Kheer
10
Others
0
Retailers

.
Interpretation - The purpose of asking this question was to know that how many retailer
deals in verka Tetra packs. Out of those 50, 33retailer deals in flavored milk and lassi, 12
deals in above two and also with mango rasilla and 3 were those who deals in all the
above four products of the Verka.

Q 6- Do you get the supply in time?

49
This question reveals how many retailers get the supply of tetra packs of verka in time.

TABLE 5.14- This table shows how many retailers keep the tetra packs of verka.

No. of responses Percentage (%)

Yes 33 66
No 17 34
Total 50 100%

Figure 5.14– Shows how many retailers keep the tetra packs of verka.

35
30
25
20 Yes
15 No
10
5
0
Retailers

Interpretation - The purpose of asking this question was only to check out the retailer
was able to get the supply on time or not. Only 33 retailers were getting the supply of
tetra packs on time and rest 17 were not able to get the supply.

Q 7 – If no please tell how much time

This question reveals how much time retailers are get the supply late.

50
TABLE 5.15- This table shows how much time retailers are get the supply late.

Time in days No of respondents Percentage (%)

1-3 days 26 52
4-6 days 11 22
7- 9 days --- ---
Occasionally 8 16
Not coming 5 10
Total 50 100%

Figure 5.15– Shows how many retailers keep the tetra packs of verka.

30
25
1--3
20
4--6
15
7--9
10
Occasionally
5 Not com ing
0
Retailers

Interpretation - The purpose of asking this question was to check how many retailers get
the supply of Tetra packs on the routine bases. Out of which only 26 were those who get
the supply on the routine, 11 are those who get supply in a week and 8 are those who get
the supply occasionally and 5 were those who never got supply by verka they always
purchase the tetra packs from the counter

51
Q 8 – How much you satisfied with verka‘s products mentioned below?

This question reveals satisfaction level of the retailers with the verka‘s products.

TABLE 5.16- This table shows satisfaction level of the retailers with the verka‘s
products.

Products Retailers Percentage (%)

Flavored milk 47 94
Flavored lassi 50 100
Mango rasilla 15 30
Kheer 3 6

Figure 5.16 – Shows how satisfaction level of the retailers with the verka ‘s products.

50

40
F.Milk
30
F. Lassi
20 M.Rassila
10 Kheer

0
Retailers

Interpretation - The purpose of asking this question was to check the satisfaction level
of the retailer in terms of sale 50 persons were satisfies with the lassi, 47 retailer were
satisfied with flavored milk 15 are satisfied with the mango rasilla and only three retailer
were those who were satisfied with the Kheer.

52
Q 9 – How much you are satisfied with verka’s selected products in the term of following
factors:-

This question reveals satisfaction level of the retailers with the factors that affect the
behavior of retailers.

TABLE 5.17 - This table shows satisfaction level of the retailers with the factors that
affect the behavior of retailers.

Products Retailer
Quality 18
Margin 15
Supply 16
Sales promotion 1

Figure 5.17– Shows how satisfaction level of the retailers with the factors that affect
the behavior of retailers.

20

15
Quality
10 Margin
Supply
5 Sales Prom otion

0
Retailers

Interpretation - The purpose of asking this question was to check that factor which
affects the behavior of the retailers to purchase the product again and again 18 prefer due
to quality, 15 due to margin, 16 due to supply and only 1 due to sales promotion.

53
Q 10 – Please tell the approximate sale of verka’s products according to the sale?
This question reveals approximate sale of the tetra packs of verka in the summer and
winter seasons.

TABLE 5.18- This table shows approximate sale of the tetra packs of verka in the
summer and winter seasons.

Season Percentage (%)

Summer 42
Winter 8

Figure 5.18– Shows approximate sale of the tetra packs of verka in the summer and
winter seasons.

50

40

30
Sum m er
20 Winter
10

0
Retailers

Interpretation - The purpose of asking this question was only to know about the sales in
summer and winters. Out of these 50 retailers 42 sell the tetra packs in summer season
but 8 were those who sell the tetra products in winters also.

54
Q 11 – Why are you not selling the products of verka?

This question reveals reasons for not selling the tetra packs of verka.

TABLE 5.19- This table shows reasons for not selling the tetra packs of verka.

Reasons No of respondents
Awareness 15
Margin 7
Quality 2
Sales promotion scheme 25
Replacement 13

Figure 5.19– Shows reasons for not selling the tetra packs of verka.

25

20
Aw areness
15 Margin

10 Quality
Sales prom otion
5
Replacem ent
0
Retailers

Interpretation - The purpose of asking this question was to check why the retailers were
not using the selected products of verka. This question was asked to 62 retailers. Out of
15 was those who were no awareness, 7 due to margin, and 2 due to quality, 25 due to
sales promotion and 13 due to replacement.This question was only for those who was not
selling the verka products or Tetra packs of Verka.

Q 12 – Do you have any complaint regarding?

55
This question reveals complaints of the retailers.

TABLE 5.20- This table shows complaints of the retailers.

Complaints No of respondents Percentage(%)

Quality 0 0
Packing 5 10
Supply 25 50
Taste 5 10

Figure 5.20– Shows complaints of the retailers.

25

20
Quality
15
Packing
10 Supply
5 Taste

0
Retailers

Interpretation - The purpose of asking this question was only to get the complaints of
the retailers nobody had complaints regarding the quality, 5 retailers having complaints
regarding packing and 5 regarding the taste and the most of the complaints were
regarding the supply.

56
 Chapter- VI

Findings of the Study

57
6.1 FINDINGS OF CONSUMER

Based on the detailed analysis and interpretation of the data collected, this above
presents a summary of the research through the following conclusions related to the area
of study: -
• In the Gurdaspur city the citizen preferred the products of the verka. Verka had
good brand in the Gurdaspur city. Other brands like nestle, amul, reliance were
lower than the verka. Consumers prefer verka more than other brands because it is
a local company.
• Flavored milk was a used more than flavored lassi, mango rasilla and kheer. It
was consumed by more than 50% consumers.
• Flavored milk and flavored lassi consumers used daily, weekly and monthly. But
the consumers use mango rasilla and kheer occasionally.
• Consumer were satisfied with price, quality, taste, availability and self-life of
product consumers were dissatisfied with the quantity.
• Only some citizens were not use flavored milk and flavored for the reason of
awareness, packing, quantity and availability. Many citizens were not use mango
rasilla and kheer for the reason of awareness, packing, quantity and availability
and quality.
• Consumers had more complaint of quality, packing and taste.
• Consumers more buy the tetra packs verka from outside of milk plant Gurdaspur.

58
6.2 FINDINGS OF RETAILERS

Based on the detailed analysis and interpretation done above the data collected, this
chapter presents a summary of the research through the following conclusions related to
the area of study: -
• Many retailers sales products from when they open the shops.
• The margin was offered by verka to retailers on the tetra packs was less than
others brands.
• More than 45 retailers keep the flavored milk and flavored lassi of verka. Only 15
retailers keep mango rasilla and only 3 retailers keep the kheer,
• Only 42% retailers get the supply in time.
• Retailers were satisfied with the flavored milk and flavored lassi but they were
only satisfied with mango rasilla and kheer.
• The sale of tetra packs was more in summer than winter.
• The sale of the flavored milk and flavored lassi was very good. The sale of mango
rasilla was so-so and the sale of kheer was very poor.
• The retailers were not keeping the tetra packs of verka for the mainly reason of
supply, replacement and sales promotion schemas.
• Very less no of retailer want to sell the tetra packs

59
 Chapter- VII

Conclusion
&
Recommendations

60
7.1 CONCLUSION OF THE STUDY

From the above study it was clear that the in today’s time there is serve competition in
every field and the milk industry is also facing a lot of competition a we know competitor
can pause some threats to the organization as well as they provide us some opportunities.
An organization can store over its competition either by enhancing the quality of the
products, reducing the price, heavily spending promotional activities or having a effective
distribution network. In the Gurdaspur city the citizen prefer the products of the verka.
Verka has good brand in the Gurdaspur city. Other brands like nestle, amul, reliance are
lower than the verka. Consumers prefer verka more than other brands because it is a local
company. Consumer are satisfied with price, quality, taste, availability and self-life of
product. The margin offered by verka to retailers on the tetra packs is less than others
brands.

61
 7.2 RECOMMENDATIONS OF CONSUMER

• The packing, price and quantity of the tetra packs of verka are less than the amul,
nestle.
• Citizens have less awareness about the tetra packs of verka. So the advertisement
budget is to increase.
• Increase the availability of the tetra packs.
• The other products of verka should be fresh and well packed because the
production is daily.
• Sales promotion schemes for the consumers should be making.

7.3RECOMMENDATIONS OF RETAILERS
• Supply of the tetra packs is improved. It should be a twice in the week.
• The replacement of the tetra packs is should be made.
• The sales promotion schemes should gave to the retailers.
• Retailers and citizens have less awareness about the tetra packs of verka. So the
advertisement budget is to increase.
• Either increases the quantity or decrease the price it will increase sale.

62
REFERENCES

63
References

Websites

• www. Altavista.com

• www.dairyindia.com

• www.google.com

• www.indiandairyassociation.com

• www.indiandairy.com

• www.milkfed.nic.in

Reference books:
• Kothari C.R – Research Methodology
• Kotler Philip - Marketing Management
• Prasad L.M- Principal & Practice of Management

64
ANNEXURE

65
 QUESTIONNAIRE

Questionnaire for citizens of Gurdaspur.

Q1 Do you use the dairy products?

1 Yes ( )
2 No ( )

Q2 Which Company’s dairy products do you use? Please rank?

1 Verka
2 Nestle
3 Amul
4 Reliance

Q3 Please tick the name of the products used by you?

1 Flavored milk 1 Yes ( ) 2 No ( )
2 Flavored lassi 1 Yes ( ) 2 No ( )
3 Mango Rasilla 1 Yes ( ) 2 No ( )
4 Kheer 1 Yes ( ) 2 No ( )

Q4 How often Do you use the products of verka? Mentioned below

Once in More than once Once in a More than once Occasi
a week in a week month in a month -onally
Flavored milk
Flavored lassi
Mango rasilla
Kheer

66
67
Q5 How much quantity do you use approximately in a month?
0-6 6----12 12---18 18--24 24--30 >30
F milk
F lassi
M Rassila
Kheer

Q6 What do you perceive of the verka products?

Excellent Good Average Fair Poor
Price
Quality
Brand
Self life of product
Availability
Quantify
Taste

Q7 How much are you satisfied with verka ‘s products mentioned below?

Very Satisfied Indifferent Dissatisfied Very

Satisfied dissatisfied
Flavored milk
Flavored lassi
Mango rasilla
Kheer

Q8 Do you have any complaint regarding?

Quality Yes ( ) No ( )
Packing Yes ( ) No ( )
Availability Yes ( ) No ( )
Taste Yes ( ) No ( )

68
Q9 Any suggestion, if you have?
_________________________________________________________________
_
_________________________________________________________________
_

Personal information
Name_______________________Address____________________________
Ph.No. _______________ Thanks for sparing few minutes to fill the Questionnaire.
Children, Housewife, Young, Elder. Date…/ July. /. 2009

Questionnaire for the retailers.

Q 1 How much old your business mention below?

69
 1 0-----5 ( )
2 5-----10 ( )
3 10----15 ( )
4 15----20 ( )
5 20----25 ( )
6 25----30 ( )
7 =>30 ( )

Q 2 Do you prefer keeping dairy products?

1 Yes ( ) 2 No ( )

Q 3 Do you sell the product of following brands?

1. Nestle
2. Amul
3. Britania
4. Uttam
5. Reliance
6. Milkfood

Q 4 Do you keep the products of verka?

1 Yes ( )
2 No ( )
If no than go to question no.13
If yes continue

Q 5 From how much time you are keeping the dairy products of verka mention below?
1. 0 - 5 ( )
2. 5 - 10 ( )

70
 3. 10 - 15 ( )
4. 15 - 20 ( )
5. 20 - 25 ( )
6. 25 - 30 ( )

Q 6 Which of these products do you deal in?

1 Flavored milk 1 Yes ( ) 2 No ( )

2 Flavored lassi 1 Yes ( ) 2 No ( )
3 Mango Rasilla 1 Yes ( ) 2 No ( )
4 Kheer 1 Yes ( ) 2 No ( )
5 others 1 Yes ( ) 2 No ( )

Q 7 Do you get the supply in time?

1 Yes ( ) 2 No ( )

If no please tell how much time

1 1 - 3Days ( )
2 4-- 6 Days ( )
3 7- 9 Days ( )
4 Occasionally ( )
5 Not coming ( )

Q 8 How much you satisfied with verka ‘s products mentioned below?

Very Satisfied dissatisfied Very

Satisfied dissatisfied

71
Flavored milk
Flavored lassi
Mango rasilla
Kheer

Q 9 How much you are satisfied with verka’s selected products in the term of following
factors:-

Very Satisfied Indifferent dissatisfied Very

Satisfied dissatisfied
Quality
Margin
Supply
Sales promotion

Q 10 Please tell the approximate sale of verka’s products according to the sale?

Summer High 5 4 3 2 1 low

Winter Not know 5 4 3 2 1 low

Q 11 Why are you not selling the products of verka?

1 Awareness Yes ( ) No ( )
2 Margin Yes ( ) No ( )
3 Quality Yes ( ) No ( )
4 Sales promotion scheme Yes ( ) No ( )
5 Replacement Yes ( ) No ( )
Q 12 Do you have any complaint regarding?
Quality 1 Yes ( ) 2 No ( )

72
 Packing 1 Yes ( ) 2 No ( )
Supply 1 Yes ( ) 2 No ( )
Taste 1 Yes ( ) 2 No ( )
Q 13 Do you want to become a retailer of verka?
1 Yes ( ) 2 No ( ) If yes than signature and stamp.

Q14 Any suggestion, if you have?

_________________________________________________________________
_
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
___

Personal information
Name_______________________Address_____________________________________
________________Ph.No. _________________________ Date……/June.July. /. 2009
Thanks for sparing few minutes to fill the Questionnaire.

73