SUMMER TRAINING REPORT

ON

“Study of consumer Perception about

Verka products”

Submitted in partial fulfillment of the requirements for the degree of Master

of business administration (2008-2010) affiliated to Punjab Technical
University, Jalandhar

Project Guide SUBMITTED BY

Ms. Mandeep Mahendru Gundeep Singh

Faculty of Management BBA-5th Sem.

GJ-IMT, Mohali Roll No.:-8100132012

GIAN JYOTI INSTITUTE OF MANAGEMENT AND TECHNOLOGY

MOHALI

1
 ACKNOWLEDGEMENT

I would like to thank General Manager Verka Milk Plant, Mohali, for
providing me this wonderful opportunity to work with ‘Roper Distt. Milk
Producers Union Cooperative Ltd.’

I am extremely thankful to In-charge (Marketing MR………………. and

entire marketing division for their invaluable support and inputs in this
project.

I extend my sincere gratitude to various respondents and citizens of Mohali

who spared their valuable time and contributed to consumer survey.

GUNDEEP SINGH

2
 DECLARATION

I undersigned here by declare that the summer training project report

submitted to my college Gian Jyoti Institute of management and
technology. In partial fulfillment for the degree of master of business
administration on “study of consumer Perception about Verka
products” is a result of my own work under continous guidance and
kind co-operation of our college faculty member Ms. Mandeep
mahendru. I have not submitted this training report to any other
university for the award of degree.

GUNDEEP SINGH

3
 CERTIFICATE OF COMPLETION

This is Certify that Mr. GUNDEEP SINGH BBA (IVth Semester) has
successfully completed her project titled “Study of consumer behaviour
about verka products” under the guidance of Ms. Mandeep Mahendru.
This is in the partial fulfillment of her MBA curriculum (2008-2010)

Dated:

Ms. Mandeep Mahendru

(Project guide)

4
 PREFACE

For management careers, it is very important to develop managerial skills .In

order to achieve positive and concrete results, along with theoretical
concepts, the exposure of real life situation existing in a corporate world is
very much needed. To fulfill this need, this type of practical training is
required.

I underwent summer training in VERKA MILK PLANT, located in Mohali.

It was my fortune to get training in a very healthy company. I got great
opportunity to view the overall working of the organization. In the
forthcoming pages, I have attempted to present a report covering different
aspects of my training.

5
 EXECUTIVE SUMMARY

Customers today are more informed and more demanding than ever. They
know quality service when they get it and they aren’t afraid of taking their
business elsewhere if they don’t get it. Most manufacturers have taken this
fact to heart because a refusal to acknowledge this reality can spell - failure -
rejection by the one who holds the purse strings and the key to profits.

Satisfaction of customer needs, in fact, provides a rationale for the

firm’s existence. Therefore consumer behavior lies at the heart of modern
marketing and its knowledge is vital for a firm’s existence, growth and
success. An understanding of the motives underlying the consumer behavior
helps a firm to seek better and more effective ways to satisfy consumers.

Consumer behavior, however, is a complex system where there is an

interaction of various social, economic and psychological factors. All these
factors affect the purchase decision of the buyer and his perception about
different products. Buying decision process incorporates all the activities
that individuals go through in their role as consumers. It starts right from the
time when there is a state of deprivation (need arousal) and goes through a
point when a means of need satisfaction has been obtained. It ends at a

6
juncture when the product has been used for a sufficiently long period of
time to judge the level of satisfaction (post - purchase evaluation).
Satisfaction is the key to generate repeat business. It ensures
customerloyalty and determines whether a customer would come to the
company again.

TABLE OF CONTENTS

Chapter No. Contents Page No.

1. Introduction 8-37

1.1 Industry profile (Milkfed) 8-14

1.2 Objectives

1.3 Company Profile (Verka) 15-37

2. Review of literature 38-41
3. Research Methodology 42-48
4. Data analysis & Interpretations 49-61
5. Conclusion 62-63
6. SWOT Analysis 64-66
7. Suggestions and recommendations 67-71
8. Bibliography 72-73
9. Annexure 74-78

7
CHAPTER NO. 1

INTRODUCTION

8
1.1 MILKFED-PUNJAB

(Introduction)

The Punjab State Cooperative Milk Producers’ Federation Limited popularly

known as MILKFED Punjab, came into existence in 1973 with a twin
objective of providing remunerative milk market to the Milk Producers in
the State by value addition and marketing of produce on one hand and to
provide technical inputs to the milk producers for enhancement of milk
production on the other hand.

Although the federation was registered much earlier, but it came to real self
in the year 1983 when all the milk plants of the Punjab Dairy Development
Corporation Limited were handed over to Cooperative sector and the entire
State was covered under Operation Flood to give the farmers a better deal
and our valued customers better products. Today, when we look back, we
think we have fulfilled the promise to some extent. The setup of the
organization is a three tier system, Milk Producers Cooperative Societies at
the village level, Milk Unions at District level and Federation as an Apex
Body at State level. MILKFED Punjab has continuously advanced towards
its coveted objectives well defined in its byelaws.

9
1.2 Objectives of MILKFED

1. To provide remunerative prices to milk producers by value addition and

marketing of produce.

2. To provide technical inputs for enhancement of milk production on the

other hand.

3. To carry out activities for promoting production, procurement processing

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

4. To purchase and/or erect buildings, plants, machinery and other ancillary

equipment to carry out business;

5. To study problems of mutual interest related to production, procurement

and marketing of dairy and allied products;

6. To establish research and quality control laboratories;

7. To make necessary arrangements for transfer of milk allied milk products

and commodities;

8. To market its products under its own trade name/brand name with its
Member Union’s trade mark/brand;

9. To promote the organization of primary societies and assist members in

organization of the Primary Societies; and

10
ACHIEVEMENTS

On the basis of quality with efficient administration, MILKFED has not only
established new mile stone of providing services to Dairy farmers but scaled
new heights in delighting esteemed customers also.

1. MILKFED is providing technical input services like animal healthcare,

supply of quality cattlefeed, fodder seeds etc. at the door steps of the dairy
farmers under its Productivity Enhancement Programme.

2. For producing quality technical services MILKFED has established its

own two cattle feed plants having capacity of three hundred metric ton per
day.

3. During the last 3 years, 8 Milk Plants and 2 Cattle Feed Factories of
MILKFED, Punjab were accedited with ISO9002 and IS-15000 (HACCP)
Certification.

4. In view of today's interest of consumers in getting quality and safe

products, MILKFED is manufacturing quality milk and milk products as per
International Standards and also exploring the possibility of manufacturing
milk products of consumer's choice.

5. MILKFED has launched its own interactive Website on Internet for its
prospective customers which can be accessed by clicking
http//www.milkfed.nic.in

11
6. MILKFED introduced liquid milk in new design packing with Mnemonic
Symbol of Co-operative Milk in all the District Milk Unions.

Critical analysis of Milk fed

Corporate Focus

MILKFED is serving the cause of Milk producers of the state in

collaboration with National Dairy Development Board by increasing the
number of functional MPCSs from 4642 in 1990-91 to 6248 in 2000-01 and
their membership rose by 90000 from 2.63lac in 1991 to 3.53lac during the
same period. This has resulted in increase of milk procurement from 1438lac
in 1991 to 3371lac liter in 2000-01. However, rehabilitation plan of sick
Milk unions has yet to reach the implementation stage.

Strength/Care Competency/Opportunities:

MILKFED earned a net profit of Rs.3.19crore in 2000-01. Its core

competency in marketing of Milk &Milk products by creating a marketing
infrastructure is serving a social purpose by providing income to land-less
laborers small and marginal farmers scheduled caste families and households

12
headed by women having just one or two cattle only as nearly 90% of the
member of Milk producer’s Cooperative Societies belong to these categories

(Annexure 20) “Operation Flood” programmed of dairy development is

implemented by it in the state.

MILK VISION 2004 to stabilize the gap between Milk procured during peak
seasons and lean season has been drawn by MILKFED to optimally utilize
Milk plants for reducing their losses. Moreover, Model diary farms in
collaboration with Technology information and Assessment Council
(TIFAC) are being developed by it at a capital outlay of Rs.2.00crore.

Restructuring/revival

Export Ropar and Ludhiana Milk unions the remaining 9 unions are
incurring losses. Their combined accumulated looses are Rs.76.33crore as
on 31-03-2001. This way, cooperative Milk union’s structure of MILKFED
is losing its commercial viability over the last two years by restricting itself
to the sale of Milk and Milk products only and not exploiting its well
developed procurement sale and supply distribution channels to market fresh
vegetables and fruits along with processing and procurement of oil seeds. To
make these plants viable and socially sustainable the introduction of latest
technology in Milk; plants and full exploitation of its marketing strength in
procurement and marketing network is the need of the hour. MILKFED is a
vital mechanism for more them one reason in the Punjab context. First and

13
foremost it is engaged in raising the viability of Agriculture of the
small/marginal farmers. Landless labors, families with no male earners and
the scheduled castes. It is therefore of utmost importance that the
Government of Punjab make its due contribution for the purpose of
leveraging finances or the National Dairy Development Board and other
cooperative institutions. Infect, If necessary Government should get District
Milk Union Cooperative so that hitherto slow extension is intensified and
the

maximum potential for cost reduction is achieved. The other important

reason for Government to support this activity even by subsides to induce a
shift out of the paddy- wheat rotation by encouraging the cultivation of
better seeds vegetable, Fruits and eventually oil seeds and meat products.

14
 1.3 INTRODUCTION &

GENERAL FEATURES OF MILK PLANT MOHALI

NAME: Verka Milk Plant.

ADDRESS: Verka Milk Plant

PHASE 6, Mohali

RAW MATERIAL: Milk.

PRODUCTS: Ghee, Pasteurized milk,

Milk powder, Curd, Cheese,

15
 Milk Cake, Sweet flavored milk.

WORKING HOURS: 24 hours (3 shifts).

TOTAL WORKERS: 163.

Capacity 1 Lakh Ltrs per day.

PROFILE OF THE UNIT

The elegant building situated on Patiala road just before we enter Sangrur is
that of Milk Plant owned by The Sangrur District Co-operative Milk
Producers Union Ltd. Its foundation stone was laid by India’s Home
Minister Mrs. Uma Shanker Dixit in 1973. It started its production in 1979.
Its name was registered as “The Sangrur Distt. Co-operative Milk
Producers Union Ltd. Sangrur”. It has been registered under Punjab Co-
operative Societies Act 1961 on 24 March 1973. This union started its milk
procurement from March 1974.

The union is working under the laws of act. In the beginning 13 societies
became its members. But this union started as milk procurement from 1974.
Initially its office was situated on the upper side of co-operative bank of
Barnala. At that time Milk Plant Sangrur was not existing. Initially the
societies of Barnala circle were started, after this it was expanded and

16
centers were approved at Dhuri and Malerkotla. At that time this union
collects milk from other societies and to Horlicks. Before it, except Horlicks
there was no major buyer of milk and Horlicks was a private concern giving
low rates.

After that the union was strengthened and milk producers got benefited by
this union as they were getting reasonable rates for their from. A project
report of Milk Plant Sangrur was made at that time with shares from

different societies were to be collected and it includes Rs 100 share money

and Rs 5 admission fees, 15 lack Rs were to be collected and in this manner
and the share of government was fixed at Rs 40 lack.For the smooth running
of the plant, the union had taken loan of worth Rs 62 lack from Co-operative
Development Corporation. By this loan a milk plant was established. It
started milk of 45000 liters per day in December 1979 further it was
expanded with the help of National Diary Development Board at ANAND
under the “Operation Flood” programmed. After few years a drier was
installed with a capacity of 10 tones. For the purchase of this machinery
70% of loan was taken from NDDB and 30% loan from government in the
form of subsidy. The total investment in the plant was 6.5 crores.

LOCATION AND LAYOUT

In the milk plant there are hard receiving departments: Production and
Engineering. The location of the stores department is carefully planned out

17
and it is housed in a position which is very near to production department so
that transportation charges are minimum. It is also easily accessible to all
other departments like engineering, boiling, refrigeration, powder plant and
workshop.

The layouts of plants store is properly planned. There are shelves,

racks, admirals and handling devices for keeping the material and
equipments properly. The store is divided into racks which are further sub-

divided into small spaces allocated. Special attention is paid to storage of

material which is liable to leakage or evaporation and deterioration.

SELECTION OF ROUTES:

Routes are selected for the delivery of milk through these societies. Shortest
milk routes are preferable so that milk reach to plant in same condition,
otherwise milk can become sour or curd. The societies which are far away
from milk plant, the four milk chilling centers are established for them.
Societies send milk directly to milk plant or through chilling centers. These
chilling centers chill milk at 4 degree Celsius which keeps the milk in good
condition for 24 hours. After chilling the milk these centers send milk to the
milk plant.

REGISTERATION OF THE SOCIETY AND THE

MEMBERS:

18
When a society is fully formed for the collection of milk it is registered
under the registration act of societies. Its members are also registered and
given members pass books and share certificates. A copy of rules and
regulations are also given to them. Then the actual milk collection starts.

MILK PROCUREMENT IN DIFFERENT SEASONS

Milk Plant Sangrur procures milk in three seasons. First comes the lean
season i.e. the months of May. June, July and August. In this season milk is
available in very low quantity i.e. 25000 liters per day. The second season is
mid-season i.e. the months of March, April, September and October. In this

season the procurement of milk is about 50000 liters per day. The most
awaiting season is flush season i.e. the months of November, December,
January and February. In this season the procurement of milk is maximum
i.e. 65000 liters.

MILK PROCUREMENT IN LAST 7 YEARS:

Year saver age milk procurement per day (in liters) total milk handling.

2001- 85000 liters per/day

2002- 80000 liters per/day

19
2003- 70000 liters per/day

2004- 75000 liters per/day

2005- 70000 liters per/day

2006-65000 liters per/day

2007- 60000 liters per/day

2008- 62000 liters per day

MAIN CENTRES AND THEIR BRANCHES:

About 300 milk producing societies come under Milk Plant Sangrur which is
operating in the whole Sangrur district. All these are divided into six main
centers which are as under:

LOCAL SANGRUR 140

MALERKOTLA 50

SEHNA 30

MEHAL KALAN 30

CHANGALIWALA 30

SANDHORE 20

20
(A) MILK PROCUREMENT PER DAY

NAME OF THE SOCIETYMILK PER DAY (in liters) Local Sangrur

40000 Sehna 8000 Mehal Kalan 5000 Chanhaliwala 7000

(B) PRODUCTION

Production is the foundation on which every organization is built.

Production is an internal act of producing something in an organized
manner. It is the fabrication of a physical object through the use of men,

material and equipment. Thus the basis of production is the transformation

of inputs into goods and services. In milk plant Sangrur two different plants
are established for the production of Ghee and SMP. These are called:

1. Powder Plant.

2. Production plant.

In powder plant Skimmed Milk Powder is prepared from spreta milk which
comes from production department. In production plant Ghee is prepared
from cream after its separation from milk. Here pasteurized milk is also
prepared. Sometimes milk cake is also prepared according to its
requirement. In addition to it there are arrangements for filling sweet milk
bottles. Powder and Ghee are made only in flush season when milk is

21
available in large quantity. In lean season production fails because of non-
availability of milk. In months of May, June, August is done; sometimes
glucose is made here on contract basis.

(C) QUALITY CONTROL

Quality control includes techniques and systems for the achievement of the
required quality of the raw material as well as final products. Most often
milk vendors adulterate the milk in such a way that normally consumers are
to be fooled. Consumers remain obvious to the various ways and means
adopted by milk vendors to adulterate milk. Here are some eye openers:

1. Urea, caustic soda and salt are added to thicken the milk.

2. Milk powder is also used for thickening and usually the powder used
is sub-standard.

3. Synthetic milk is added to pure milk to increase the quantity.

4. Sometimes pure milk is separated, the cream is removed and the

skimmed milk powder is added to it.

(D) ACCOUNTING :

22
Accounting is the art of recording, classifying and summarizing in a
significant manner, and in terms of money transactions and events which are
in part at least of financial character and interpreting the results thereof. In
milk plant Sangrur this section performs the functions of maintaining the
accounts of stores material and milk products by union and to make
payments at right time. Like this to maintain the accounts of milk and milk
products sold by the union and to receive the payment for goods sold to
consumers, concerned sections and branches. The bills are prepared by
accounts branch according to 10 days milk purchase from producers and
societies. It is the duty of this section to maintain the accounts according to
rules and regulations mentioned by Registrar Co-operative Department and
to follow the restrictions and suggestions imposed by auditor.

(E) MARKETING

Milkfed Punjab is serving nationwide consumers through its network of

regional offices and strong distribution channels. Milkfed markers a wide
variety of products liquid milk, skimmed milk powder and many more.

ACHIEVEMENTS

23
Milk Procurement: -

Milk Plant procured about 55,000 Lt. of milk per day through 19 Milk routes
in the Flush Season.

Animal Health Care & Other Technical Inputs: -

In addition to Organizing the remunerative Milk market system Through

milk producers cooperative societies, Milk Plant is also providing regular
health coverage by running 2 vet nary routes and 55 Artificial Insemination
Service Stations at Society level.

Genetic Improvement of Milch Animals Under this, lay inseminators are

trained who are in-turn, doing Artificial Insemination at the door steps of
Dairy Farmers.

Supply of Balanced Cattle Feed: -

Special attention has been paid to the supply of balanced cattle feed to the
milk producers so as to enhance the milk production. Four types of cattle
feeds are being supplied i.e. ISI Type, High Energy, Bye Pass Protein Feed
& Buffalo super feed to meet the requirements of Milk Producers.

Supply of Improved Varieties of Fodder Seeds: -

24
Cows does not produce ample milk without ample fodder. Through research
and seed-farms, Milkfed has worked t provide the farmers high yielding
forages at low cost. Fodder Development activities initiated by Milkfed have
created a good demand for improved fodder seeds in Punjab. Milkfed
established its own seed processing unit in 1985, the unit is automated and
has the capacity to grade 16 million tons of fodder seed per day.

Quality Assurance Program:

Quality Assurance Program (QAP) which is a part and parcel of Dairy Plant
Improvement Program (DPIP) was taken up in Ludhiana Milk Union with
the Technical guidance from NDDB. The main objective of the program is
to improve efficiency of Plants coupled with loss management to bring
down the cost of production, improve the quality of milk and milk products
manufactured to ameliorate the general hygienic and house keeping
standards and above all to enhance the profitability and financial viability of
the Milk Plants to enable milk producers to get better price for their produce.

MAIN PRODUCTS MANUFACTURED BY MILK PLANT

The main products which are manufactured by the milk plant Sangrur are as
under:

1. Ghee.

2. Pasteurized Milk.

25
3. Milk Powder.

4. Sweetened Flavoured Milk (PIO).

5. Milk Cake.

6. Cheese.

7. Curd.

MARKETING DEPARTMENT

According to Prof. Phillip Kotler”Marketing is the human activity directed

as satisfying need and wants through the exchange process”.

Marketing is the process through which producers and consumers of various

goods are brought together in an exchange relationship and the transfer of
ownership takes place. Marketing process starts even before the goods go

into production. It does not end with sale but continues till the satisfaction of
consumer is obtained.

To carry out selling functions, it is important to have a qualified and

expressed sales force with leader who can plan, organize, direct and control
the selling job objectivity. The salesman is an extremely important link in

26
the claim of distribution. It is sometimes said that salesmanship is the other
name of persuasion.

MARKETING STRATEGIES

Section of Milk Booths/Agencies Security Money Refundable Agency Rs.

5000 Full time booths Rs. 10000 Part time booths Rs. 3000 Institutions 45
days advance payment

MARKETING MEASURES FOR DOMESTIC MARKET:

For domestic market following measures are taken up by marketing

personnel:

A. Dealers” meeting is called once in every six months.

B. The plant has own distribution network for the sale of products.

C. Milk products are marketed to bring up country markets through out

India on consignment basis.

FOR INTERNATIONAL MARKET:

27
For Export following measures are taken into consideration:

A. Requirement is given by customers in the letter of credit.

B. Quality should be mentioned.

DOMESTIC MARKETING ACTIVITIES

The domestic marketing activities are performed on the basis of Demand and
Supply.

Demand for milk and milk products are received in two ways:

Through Telephone-

Any demand or change in demand is received between 9:30 am and 2:00

pm.

Through Supply-

Milk booths collect demand according to milk supplied to the agencies.

About 70% of milk is distributed in the morning and remaining 30% is
distributed in the evening.

28
PAYMENT AND BALANCE SYSTEM

Since agency is required to deposit one day advance payment separately for
morning and evening, if any cash balance remains with the union that is
admitted in the meant supply payment.

For institutions 45 days of advance payment against their demand is

collected union.

RETURN OF MILK

If milk is found leaked. It is taken back from dealers only at the time of
delivery. One entire tray is provided for replacement of leakage of every
truck or other vehicle through which milk is supplied to the dealers.

Marketing is a comprehensive term and it includes all resources and a set of

activities necessary to direct and facilitate the flow of goods and services
from producers to consumers in the process of distribution. Marketing is the
process of planning and executing the conception, pricing, promotion and

29
distribution of ideas, goods and services to exchange that satisfy individual
and organizational objectives.

ROLE OF MARKETING IN VERKA MILK PLANT

Head Office collects this information from all the plants and scrutinizes the
information that which plant has large stock of products and who is lacking
in it. Then it gives orders to plant which has large stock to supply products

to other plants so that stock can be absorbed quickly. The prices of all the
products are determined by the H.O. and their retail price through out India
is same H.O. charges 3% commission on sales made by milk plant, Sangrur.

For the local sale of milk and milk products, a milk bar is opened outside the
main gate of milk plant, Mohali and its average sales are Rs 5 lakh per day.
Some milk products like liquid milk, Cheese, Milk cake, S.F.M., Ice-cream
etc. are sold through local dealers in the district.

ADVERTISEMENT AND SALES PROMOTION

The advertisement and sales promotion of every product is necessary.

Without this, nobody comes to know about the product. Every organization

30
whether it is small, medium or big has to do some type of advertisement.
Verka milk plant has also adopted some policies for the sale of its products.
It has its own Vans, Trucks, and Jeeps etc. for selling its products. There are
also some benefits which are being provided to the dealers. There is a
facility of free training of testing milk to the societies so as to make more
customers. With the adoption of such policies sales have increased in
Dhuri,Sunam, and Barnala as well as in Sangrur. For doing advertisement
the shops of retailers have been painted showing various Verka products and
various types of banners are also given to them which are to be displayed.
Advertisement of Verka products is also shown on Local Cable Networks of

Chandigarh,Mohali,ropar and many more cities. Pamphlets are also being

distributed door to door.

SALESMANSHIP GUIDE

Certain guidelines and motto are being told to the salesmen for meeting the
customers’ desires and wants. Various guidelines are as follows:

1. It is said "sell yourself before you sell the product". The above
saying is measuring to create one’s own confidence in the minds of
customers so as to ensure sales.

31
2. Your sincerity and capability in convincing is your performance for
success.

3. Over convincing never pays single facts convince better.

4. Always remember that customer is more intelligent than you.

5. Don’t indulge in giving guarantees if wear and tear.

6. You should be pre-determined in your mind of items, size to be sold

to the customers after stock.

7. Your expertise is your success.

8. Don’t display all of your varieties because customers generally have

the habit of asking “more”.

DISTRIBUTION CHANNEL

MILKFED

32
 COMPANY

WHOLESALER

RETAILER

CUSTOMER

PRODUCT OF VERKA

Milkfed has formulated company specifications for its milk & milk products

33
to provide standard and quality of products to consumers.

Milk Cheese SFM(Pio)

Ghee Icecream & Sweets Milk Powder
Curd, Kheer... Butter Rasella

Now Verka has arrived on the sheer strength of its quality, freshness and
purity and of course its home made taste and its products being of most
affordable prices. To people today, Verka is part of their daily life.

1. Liquid Milk Pasteurized Pouch Packed Milk:-

It is pouch packed milk. It may be used as such or for milk based

preparations. It shall be kept under refrigerated conditions. It is packed in

half ltr. Pouch. Its length of shelf life is 48 hours under refrigerated
conditions. It is sold in arid around Chandigarh,Mohali,kharar and ropar
areas. Special distribution control is needed, under refrigerated condition if

34
transported to very long distance. Verka Milk Plant is preparing three types
of milk pouch :-

Standardized Milk Toned Milk Double Toned Milk

2. Milk Powder:-

Dried Milk or Milk Powder is product obtained by the removal of water

from milk by heat or other suitable means to produce a solid containing 5%
or less moisture. Whole milk, defatted or skim" milk may be used for drying.
It comes in packing of 200 gms, 500 gms. etc. It can be stored for 1 year
before use.

3. Ghee:-

Ghee may be defined as clarified butter fat prepared chiefly from cow or
buffalo milk. The product can be used on roti/pranthas or can be used as

cooking other material for food. It is preserved at ambient temperature for

one year. It is packed on 500 gms, 2 Kgs., 5 Kgs. & 15 Kgs. bulk pack in tin.

35
It is sold anywhere in Punjab and abroad also. No special distribution
control is needed.

4. Butter: - Butter may be defined as a fat concentrate which is

obtaining by churning cream, gathering the fat into a compact mass and then
working it.

The product obtained from cow and buffalo milk or a combination thereof or
from cream or curd obtained from cow or buffalo milk or a combination
thereof, with or without the addition of common salt and colouring matter. It
can be kept under refrigeration for three months. This comes in packs of 10
gms. 100 gms. And 500 gms.

5. Lassi:-

Lassi, also called chhas refers to desi butter milk which is by product
obtained when churning curd led whole milk with curd indigenous devices
for the production of desi butter.

Verka Lassi is very popular, specially in Punjab and it is also liked by the
people of other states. It comes in the 200 ml. tetra pack.

36
6. SFM:-

It is known as Sweetened flavoured milk or bottle milk. The product used in

the form of drinking sweet milk. It is preserved at ambient temperature. It is
packed in 200 ml. bottle, 200 ml. tetra packs. The length of shelf life of
product can be held far three months under ambient temperature. It is sold in
and around Punjab and upcountry market mainly Delhi.

7. Ice Cream:-

Ice Cream may be defined as a frozen dairy product made suitable blending
and processing of cream and other milk products, together with sugar and
flavour, with or without colour and with the incorporation of air during the
freezing process. There are mainly three types of Verka Kulfies i.e. Malai
Kulfi, Choco bar and Mango bar. Malai Kulfi made with milk, malai and

Crushed nuts. Choco bar contained chocolate and Mango bar kulfi contain
mango flavour.

8. Paneer:-

37
Paneer refers to the small sized soft cheese. The product can be consumed as
such or can be fried and consumed. It can also be used as an ingredient for
making Indian Sweets and paneer based dishes. It is preserved under
refrigerated condition for 20 days from the date of packing. The product is
packed in poly film bags. The pack size is 200 gms. For consumer pack and
5 Kg. Capacity in bulk pack as agreed by contracted buyer.

9. Curd/Dahi:-

Dahi or curd is the product obtained from boiled milk by souring, natural or
otherwise, by a harmless lactic acid or other bacterial culture. It should have
the same percentage of fat and solids - not - fat as the milk for which it is
prepared.

38
10. Raseela:-

Raseela is a very popular product of Verka which was launched in 1995. It

comes in two flavours - i) Mango Raseela and ii) Pine apple Raseela. Mango
Raseela is prepared from mango pulp and Pineapple Raseela from pineapple
pulp. These are coming in 200 ml. tetra pack.

39
CHAPTER NO. 2

REVIEW OF

LITERATURE

40
Dr. Arvind Kumar Yadav and Mr. Suman Yadav (2008)

Journal of IPM Meerut

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.

Dr. N. Kathirvel and Dr. N Chandersekaran (2008)

Indian journal of marketing

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

41
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.

J.V Rangeswara Reddy (2009)

Indian journal of marketing

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.

Steen 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

42
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

H.k 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

43
CHAPTER NO. 3

RESEARCH

METHODOLOGY

44
RESEARCH METHODOLOGY

INSIGHT MARKETING RESEARCH PROCESS AN OVERVIEW

The essence of research conducted by me is to analyze the present market

position of Verka products among its competitors and the problems which
are being faced by customers, wholesalers, retailers. The eventual objective
is to suggest some recommendations to the company so as to enable them to
increase their market share.

One in analyzing my samples follows no conventional method. The total

analysis is based on the internees from the question put on before my sample
size. A research of this can’t be done all once throughout large area in a
limited time so Sangrur, Sunam have been selected for research.

INTRODUCTION

According to Prof. Phillip Kotler,”Marketing research is the systematic,

design, collection, analysis and reporting of the data and finding relevant to
specific marketing situation facing the company”.

Marketing is restless, changing dynamic field. Since 1920 many important

and dramatic changes have taken place in marketing, thousands of new
products including those of entries of new industries such as automobiles,

45
electronics and computer, textile, walk product etc. have appeared in the
market. The market orientations have changed from production to market.

STEPS OF MARKETING RESEARCH PROCESS:-

DEFINING PROBLEM AND RESEARCH OBJECTIVES

DEVELOPING THE RESEARCH PLAN

COLLECTION OF DATA

PRESENTATION OF THE FINDINGS

The first step of marketing research is defining the problems and research
objectives. Following are the problems and objectives which are to be
defined:

# To ascertain the frequency of using Verka product.

# To ascertain rescannable price of Verka products.

# To ascertain the best product of Verka brand. .

46
# why people prefer Verka products.

# To know about sales pattern.

# To know the competition level faced by Verka products in the

market.# To know the opinion of people about Verka products regarding
its taste, packing etc.

DEVELOPING THE RESEARCH PLAN

The second step of marketing research process calls for developing

the most efficient plan for gathering the needed information. While
designing a research plan we have to take decisions regarding data sources,
search approached, search instruments, sampling etc. There are two plan
contact methods which are as follows:

A. DATA SOURCES

There are two types of data sources:

1. Primary Data:-

Personal interviews are conducted which enable collection of oral verbal

response. This is fact to face contracted with structured or sometimes even
unstructured patterns. This helps in obtaining indent information.

47
2. Secondary Data:-

Secondary data can be obtained from different Milkfed magazines and

annual reports, financial documents referred.

B.

RESEARCH APPROACH

Survey Method :- Survey are best suited for descriptive research companies
which undertake surveys to learn about peoples’ knowledge, beliefs,

preferences, satisfaction etc. to measure these magnitude in the general

population. While observation and tours are best suited for exploratory
research which is not the case of our study.

C. RESEARCH INSTRUMENT

Questionnaire

A questionnaire is prepared and used to collect the information. The

majority of questions are close ended. Questionnaire is distributed to people
to know about their preferences, tastes, demands etc. This is one of the
easiest methods of collecting information.

D. SAMPLING PLAN

After deciding on the research approach and instrument, we must design a

sampling plan. This plan calls for three decisions:

48
 1. Sampling Unit:-

Here we define what is to be surveyed i.e. the target population that will
be sampled. In our case the general public in cities and towns come under
the sampling unit.

2. Sample Size:-

Large samples give more reliable results. In our study 100 customers
were surveyed in Sangrur, Sunam.

3. Sampling Procedure:-

Area sampling is using because it is not practically possible to visit all

places of India therefore Sangrur, Sunam chosen for survey.

E. CONTACT METHOD:-

In this decision is taken that how the object should be contacted i.e. whether
by mail questionnaire, telephone, interviews. In our research personal
interview is the most convenient and reliable method.

F. COLLECTION OF THE INFORMATION:-

49
The data collection phase of the marketing research is the most expensive
and most error prone process. There can be error as some respondent can
give biased or dishonest answer for the collection of the information. The
researchers personally go to customers to collect the reliable data. Here all
knowledge of the researcher about that field comes to test the ingenuity of
the research.

Here I got the experience of working professionally and independently on

the road which gives some taste of practical marketing. I also got a lot of
exposure about the market. The present study undertaken is descriptive in
nature and in this study questioning people with regular expertise in that are
being used.

Limitations of research:-

1) Due to sangrur being a large city, it was not possible to interact with
people from all over the city or even district.

2) Few consumers were reluctant to fill the questionnaire as they perceived

us as sale men and also shown reluctance in giving their contact numbers.

3) Time period for the project execution was less as ample time could not be
given to each customer and vice versa as they have to fulfill their other
obligations also.

50
4) Interaction with dealers was also difficulty as they were busy with their
customers most of the time.

5) There is no measure to check out whether the information provided by the

consumers is correct or not.

51
 CHAPTER NO. 4

DATA ANALYSIS
AND
INTERPRETATION

ANALYSIS & INTERPRETATION

1. Kind/source of milk purchased?

52
Packed 34

Dairy 25

Milkman 41

Packed
Milkman 34%
41%

Dairy
25%

Packed Dairy Milkman

Interpretation: According to 100 respondents 34% people says that they

use to use packed milk, 25% says they use dairy milk and rest 41% says they
use milk brought by milkman.

2: How you ever used Verka Products?

Answer Percentage
Yes 60
No 40

53
 Percentage

40% Yes
60% No

Interpretation: According to 100 respondents 60% people says that they

use to verka product and 40% people do not use verka product..

3: From the following which Verka products you have used?

Products Percentage
Milk 55
Ice-Cream 25
Lassi 5
All & Others 15

Percentage

60
50
40
30 Percentage
20
10
0
Milk Ice- Lassi All &
Cream Others

54
Interpretation: According to 100 respondents 55% people says that they
use to use packed milk, 25% says they use ice cream and 5% says they use
verka lassi and rest are 15% used other product of verka.

4: Since when you are using Verka milk Product?

Time in Years Percentage

1 57
1-5 34
More than 5 9

Percentage

9%
1
34% 1-5
57%
More than 5

Interpretation: According to 100 respondents 57% people says that they

are using the milk product last one year, 34% from 1 to 5 year and 9%people
using the milk more than 5 year..

Q5: Do you think whether the price is reasonable for Verka milk
products?

55
Answer Percentage
Yes 45
No 55

Percentage

45% Yes
55% No

Interpretation: According to 100 respondents 45% people says that the

price of verka milk product is reasonable and remaining 55% people says
that the price is not reasonable.

6: What do you think about the packing of the different Verka

products?

Answer Percentage
Good 68
Ok 8
Satisfactory 9

56
Poor 15
Very poor 0

Percentage

80
60
40 Percentage
20
0
y
e
d

or
or
ag
oo

Po
ct
er
G

fa
Av

tis
Sa

Interpretation: According to 100 respondents 68% people says that the

packing of verka products are good, 8% people says that packing is ok, 9%
says satisfactory and remaining 15% says that the packing of verka products
are poor so according to this analysis packing is good.

7: In your opinion taste of the Verka products are?

Answer Percentage
Good 64
Average 8
Satisfactory 18
Poor 10
Very poor 0

57
 Percentage

80
60
40 Percentage
20
0

ry
e
d

or
ag
oo

Po
ct
er
G

fa
Av

tis
Sa

Interpretation: According to 100 respondents 64% people says that the

taste of verka product is good, 8% says that its taste is average, 18% people
satisfactory with this and 10% people says that the taste is poor.

8: What is your opinion about the quality of the various Verka

products?

Answer Percentage
Excellent 13
Good 51
Satisfactory 26
Poor 10
Very poor 0

58
 Percentage

60

40
Percentage
20

0
Excellent Good Satisfy Poor

Interpretation: According to 100 respondents 13% people says that the

quality of verka products are excellent, 51% people says that the quality is
good, 26% people satisfy with this and remaining 10% people says that it is
poor.

Likert scale

For comparing verka products with Today & Amul with respect to
likert type scale has been used.

Services Excellent Good Average Poor Very Total Relative

37
of verka
36
(5) (4) (3) (2) poor weighted %
35
34
(1) average
Packing 68 8 9 15 0 429 35.63
relative %

33
Taste
32 64 8 12 10 0 408 33.88
quality 13
31
51 26 services 10
of verka prefered by
customer as compared to Today
0 367 30.48
30
milk & Amul
29
28
27
packing taste quality

servicesprovided by verka

59
Note:- Responses of excellent were assigned weight of (5) good responses
were assigned weight of (4) responses of average (3) and responses of poor
and very poor were assigned weight of (2) and (1) respectively. And
respective responses were multiplies with their corresponding weight to get
total weighted average and then their relative percentage was calculated.

9. Are you aware that full cream milk is the best for growing
children & sports person as it contain 6.0% of facts?

Yes 63

No 37

60
 No
37%

Yes
63%

Yes No

Interpretation: According to 100 respondents 63% people says that they

are aware about that full cream milk is the best for growing children &
sports person as it contain 6.0% of facts and rest 37% says that they are not
aware that full cream milk is the best for growing children & sports person
as it contain 6.0% of facts.

10: Have you ever seen the advertisement of the Verka Products?

Answer Percentage
Yes 24
No 76

Percentage

24%

Yes
No

76%

61
Interpretation: According to 100 respondents 76% people says that they
have not seen the verka advertisement and 24% says that they have seen the
advertisement. As clear from analysis mostly people have not seen the verka
advertisement.

11: When you like to buy verka products?

Answer Percentage
During Traveling 27
For Break 18
As a Health Tonic 35
For Enjoy 20

Percentage

40
30
20 Percentage
10
0
Traveling

For Enjoy
Health
Break

Tonic
During

As a
For

Interpretation: According to 100 respondents 27% people says that they

like to buy verka products during traveling, 18% people buy during break
time, 35% people buy as a health tonic and remaining 20% buy verka
products only for enjoy.

62
CHAPTER NO .5

CONCLUSION

63
 Conclusion

Working at Verka Milk Plant, MOHALI gave me an opportunity to apply

my skills and knowledge, which I had gained previously.

It gave me an opportunity to see working an organization and to be a part of

it. Marketing Research Project on Rural Marketing gave me an opportunity
to be exposed to the farmers who were the members of various Milk
Producers’ Co-operative Societies and to know about them.

It was an amazing experience with learning all the way, which helped me to
brush up my knowledge and skills.

64
 CHAPTER .6

SWOT ANALYSIS

65
SWOT ANALYSIS

STRENGTHS:-

1. Brand Loyalty among the rural people for Verka products.

2. Good brand image of Verka products in the minds of rural people.

3. Faith on Verka products by the rural farmers.

4. Rural people satisfaction with quality, price, quantity and availability

is also strengthen the dairy business.

WEAKNESSES :-

1. Lack of proper advertisements by the plant, such as posters, glow

signs, etc.

2. Lack of proper distribution system in rural areas.

3. Lack of proper marketing network in rural areas as like in urban areas.

66
4. Very high rates of products such as bottle milk for Rs.15 for 200 ml.

OPPORTUNITIES:-

1. Greatly improved expert potential for milk products of western as well

as traditional types.

2. Proper utilisation of available resources to decrease the per unit cost.

3. By product utilisation for import substitution.

4. Growing demand for milk and milk products.

THREATS:-

1. Introduction of foreign products in Indian market.

2. Poor quality of milk.

3. The liberalisation of Dairy Industry is likely to be exploited by multi

-nationals. They will be interested in manufacturing milk products which
yield high profits. It will create milk shortage in the country adversely
affecting the consumers.

67
4. Export of quality feed under the liberalisation policy.

CHAPTER NO .7

SUGGESTION

AND

68
RECOMMENDATION

69
 RECOMMENDATIONS REGARDING PRODUCT:-

Verka has presently four variants of liquid milk in market but still it is not
able to segment market according to consumers’ preferences. The only
differentiation in these variants is the color of the packs. Variants name
should be printed on the packs in such a way that they are clearly visible to
the consumers. Different punch lines should be designed for different
variants. This will help in formulating advertisement strategy and reaching
the targeted customers. For example, verka smart double toned milk is
offered recommended by doctors to heart patients. It can be targeted in
health conscious people.

Plain lassi which comes in one litre pack only should be available in smaller
packs like 250ml or 500ml.

Kheer is available in 125gm pack, which is quite small and is recommended

to be packed in larger pack like family size packs so that it can be consumed
conveniently as a sweet dish by whole family.

RECOMMENDATIONS REGARDING PLACE

70
Milk consumer values from delivery and a lot of distributors are already
providing this facility. Milk plant should think of giving extra commission to
its dealers for ensuring such facilities. This scheme can be implemented in

few areas and if there is an increase in consumption of milk then it can be

extended to all other areas catered by milk plant.

There is need to communicate regularly and taking feedback from agents.

Monthly meetings will help in improving the relation with dealers. The
declaration of the prices like “Fastest Growing Dealer” OR “Highest selling
Dealer” can be announced bi monthly or bi annually to motivate dealers to
increase their sales.

Shortage of products is seen in Sunam so distribution network should be

improved for the same.

RECOMMENDATION REGARDING PROMOTION

The following steps can be taken in the field of promotion:

1) Using electronic and print media for information dissemination:

In recent days, there has been lots of new highlighting adulteration of food
products that is making people skeptical about packed food products.

71
Special programs highlighting supply chain of milk producers ‘ co-
operatives can be screened and telecasted on TV from time to time .news
highlighting achievement of milk plant can also be published in news papers
which will help in creating favorable image for verka products.

2) Inviting people for plant visits on weekends:

Plant can be opened to general public for visit on Saturday and Sunday for a
limited time interval in order to win their trust on verka products. This can
be done through collaborating with Radio Fm channels where winners can
get free visits and some limited period coupons.

3) Toll free telephone for customer feedback:

Presently verka products have a telephone number printed on their packs but
this is not toll free. A toll free number should be there and printed in such a
color or font that is easily differentiable from the rest of the text on the pack.

Recommendations regarding pricing:

Following suggestions can be considered for improving pricing strategies of

companies:

1) Introduction of coupon system;

Milk is the commodity that is daily bought and consumed within

households. It is cumbersome for consumers to make payment daily as
change for currency is not available at times. There are offered candies in

72
return for change which many of the consumers do not like. This problem
can be solved by introducing milk coupon which can be bought from
agencies. Coupon system has been successfully implemented by several
individual distributors in their respective areas. It is needed to be
implemented in entire city.

2) Pricing in round figures:

Milk sellers often do not have fifty paise coin or change with them so they
often sell milk at higher prices .this problem can be curbed by keeping the
prices in whole number multiple of rupee. People buying milk using
coupons can be this discount of fifty paise. This will encourage more people
to for milk coupon.

73
CHAPTER NO .8

BIBLOGRAPHY

74
 Brochure/booklet/magazine Verka milk Plant, Mohali

Kothari C R, “Research methodology” Second Revised Edition Publishers-

New Age International (P) Ltd., Year- 2008

Dr. Arvind Kumar Yadav and Mr Suman Yadav (2008) , Journal of IPM
Meerut

Dr. N. Kathirvel and Dr. N Chandersekaran ( 2008) , Indian journal of

marketing.

J.V Rangeswara Reddy (2009) , Indian journal of marketing.

Websites:-

www.milkfed.nic.in

www.milkfed.jp

www.milkfed.org

75
CHAPTER NO .9

ANNEXURE

76
 ANNEXURE

Dear Sir/Madam

I am a student of, GJIMT, MOHALI conducting a marketing

survey on “study on consumer behaviour about verka products I”. I request
you to fill this questionnaire & I assure that this data will be used only for
study purpose & it will be kept confidential.

Name: …………….

Address: …………....

Telephone No: ……………

1. Kind/source of milk purchased?

Packed

77
 Dairy

Milkman

2. How you ever used verka product?

Yes

No

3. From the following which verka products you have used?

Milk

Ice cream

Lassi

All & others

4. since when you are using verka milk products?

One year

1-5 years

More than 5 years

78
5. Do you think whether the price is reasonable for veka milk products?

Yes

No

6. What do you think about the packing of different verka products?

Good

Ok

Satisfactory

Poor

7. In your opinion taste of verka products are?

Good

Average

Satisfactory

Poor

8. What is your opinion about the quality of the various verka products?

Excellent

79
 Good

Satisfy

Poor

9. Are you aware that full cream milk is best for growing children & sports
persons as it contains 6.0% of fats?

Yes

No

10. Have you ever seen the advertisement of verka products?

Yes

No

11. When you like to buy verka products?

During traveling

For break

As a health tonic

For enjoy

80
81