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SALE &
ACKNOWLEDGEMENT
A large number of individuals have contributed to project. This project is a humble attempt to sketch done the contribution of all those persons who have directly or indirectly given their precious time and help along with proper guidance for making this report in the following shape. First of all I would like to thank Mr. R.K. Tiwari (General Manager, Marketing) Verka milk plant, Bathinda without whose permission project of VERKA would have been castle in the air. Who always helped me and provided me relevant knowledge in the subject to enable to prepare the project. And also I would like to give thank to Mr.V.K. Sharma, project co-ordinate (Deputy Manager, Marketing) whos supported to me in every aspect. Lastly but not the least, I pay my gratitude to my parents, family members, friends, faculty members of Chandigarh Business School and all executives of Verka Milk Plant, Bathinda for their moral support and whole hearted co-operation in drafting this report.
DECLARATION
I hereby declare that the project report entitled Sale and Market Share of Verka, Milk Plant Bathinda submitted in partial fulfillment of the requirement for the degree of master of business administration of Chandigarh Business School, Landran Mohali is my original work and has not been submitted for the award of any other degree at any other institute or university.
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Place:
Date:
Supervisor
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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 Bathinda. 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.
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The Indian dairy industry is contributing significantly to the country's economy, besides improving the health standards by increasing the nutrition value of the food. The value of output from dairy sector increased to Rs. 5,00,510 million in 1994-95 from Rs. 2,75,080 million in 1990. India occupies first position in the world having a total bovine population of 288 million compared to the world's total bovine population of 1420 million. As per 1992 livestock census, the country has about 62.90 million breed able cows and 42.46 million breed able buffaloes.
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The cross bred cattle are predominant in Kerala, Maharashtra, Tamil Nadu, Punjab and Uttar Pradesh, while buffaloes are very common in Uttar Pradesh, Andhra Pradesh, Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Punjab, Bihar, Karnataka, Haryana and Tamil Nadu. There has been a major improvement in milk production which increased from 17 million ton in 1951 to 70.1 million ton in 1997 and the growth was maximum between 1980 and 1990. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Maharastra, Gujarat, Andhra Pradesh, Haryana, Tamil Nadu and Bihar contributed to the extent of 85 percent of the total milk production in the country.
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Today, India is the second largest producer of milk in the world after the United States of America. The present per capita availability of milk is 205 gms as against the ICMR recommendation of 250 gms. In 1970 under the aegis of NDDB, "Operation Flood" programme was launched to modernize the dairy sector and flood the four metro cities with from dairy cooperatives. By the end of 1996-97, 74, 383 village milk producers cooperatives
were organized in 264 districts with an average rural milk procurement of 12.26 million liters per day. Another step was taken in 1989, to augment rural income by launching Technological Mission on Dairy Development (TMDD), which aims at applying modern technology to improve productivity, reduce costs of operation and thus ensure greater availability of milk and dairy products. Milk procurement and processing
The organized dairy sector (both co-operative and private) is presently handling only 10-12 percent of total milk production in the country. The targets and achievements of milk production, procurement and processing in co-operative sector by the end of VIII Five Year Plan are given in Annexure II. Thus it indicates, there is a wide scope for processing of milk and manufacture of milk products for domestic consumption as well as export.
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Export performance
Dairy products form one of the fastest growing segments in the livestock produce export. The major products exported are malted milk foods, ghee and cheese (to some extent) to the countries like Bangladesh, UAE, Nepal, Sri Lanka, Bahrain and Oman.
Export potential and marketing Bangladesh, United Arab Emirates, Nepal, Sri Lanka and Oman are the potential countries for export of malted milk products, butter and ghee. The export of milk and milk products to currently existing markets would increase to Rs. 285 million and to new markets to Rs. 155 million. Thus exports are likely to touch Rs.440 million by the turn of the century. The GATT agreement further gave a boost to the dairy industry, as India has a comparative cost advantage in regard to milk production. NABARD has been actively involved in credit disbursement in a number of schemes in dairy sector. It also encourages development of new products through its Research and Development Fund besides guiding various entrepreneurs in new areas of business and technology.
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Fluid Milk Ghee Butter Curd Khoa (Partially Dehydrated Condensed Milk) Milk Powders, including IMF Paneer & Chhana (Cottage Cheese) Others, including Cream, Ice Cream
Overview of the Indian Dairy Sector The country is the largest milk producer all over the world, around 100
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(Approximately equals combined output of paddy and wheat!!) 1/5th of the world bovine population Milch animals (45% indigenous cattle, 55 % buffaloes, and 10% cross bred cows) Immensely low productivity, around 1000 kg/year (world average 2038 kg/year) Large no. of unproductive animals, low genetic potency, poor nutrition and lack of services are the main factors for the low productivity There are different regions developed, average, below average (eastern states of Orissa, Bihar and NE region) in the dairy industry.
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HISTORY
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Milkfed is not an unknown name for the people of Punjab. It is very popular among the people. There is a very long history behind this popularity. In 1959, a village named 'Verka' near Amritsar, Chief Minister of Punjab Sardar Partap Singh Kairon established a Dairy Development Corporation for safeguards of farmers and increase dairy business. After some times four more Milk Plants were established i.e. in Chandigarh, Mohali, Ludhiana and Bathinda. There after it progressed and the number of Milk Plants roses to 8 Plants upto 1980. Before 1981 it is fully under the control of Punjab Govt. But after it in 1981 the Govt. has developed its name from Punjab State Co-operative Milk Producers Union Ltd. into MILKFED Punjab. All the plants were controlled by Head Office which is established at Chandigarh. Only one balance sheet was prepared for all plants in Punjab and Profit & Loss for all the plants was prepared collectively. But in 1981 all plants started to make their own Balance Sheet and calculate Profit & Loss for their own plant. The fully Co-operative Society System was adopted and presently is in continue.
Milkfed, Punjab
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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 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 organisation 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.
Organization Structure:
Objectives of MILKFED
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To provide remunerative prices to milk producers by value addition and marketing of produce. To provide technical inputs for enhancement of milk production on the other hand. To carry out activities for promoting production, procurement processing and marketing of milk and milk products for economic development of the farming community. To develop and expand such other allied activities as may be conducive for the promotion of the dairy industry, improvement and protection of milch animals and economic betterment of those engaged in milk production; To purchase and/or erect buildings, plants, machinery and other ancillary equipment to carry out business; To study problems of mutual interest related to production, procurement and marketing of dairy and allied products; to purchase commodities from the member and deal with nonmembers for marketing, dairy and allied products subject to such conditions as may be decided by the Board from time to time; To establish research and quality control laboratories; To make necessary arrangements for transfer of milk, allied milk products and commodities; to market its products under its own trade name/brand name with its Member Unions trade mark/brand; To promote the organization of primary societies and assist members in organization of the Primary Societies; and To plan development strategies and programme to increase the volume of procurement and production of the Federation and its members Unions and for its affective marketing.
INPUT SERVICES:
It is one of the fundamental objectives of MILKFED to carry out activities for promoting milk production in the State. In view of this, various technical input services like veterinary health care, artificial insemination services, vaccination, supply of VERKA balanced cattle feed and quality fodder seed etc. are provided for enhancing milk production and economic development of farming community.
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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. Milkfed not only provides assured market to milk producers but also carries inputs to enhance milk to their doorsteps. The District Cooperative Milk Producers Unions and Milk Plants have attained self-sufficiency or are on the threshold of attaining it. Milkfed has played a very vital role in providing a strong base for remunerative price to the producer; they get more money for their milk and payments are timely. In addition technical input services in feeding, breeding and management are easily accessible. Value addition is one of Milkfeds thrust areas and the plants produce not only pasteurized, homogenized milk but also buttermilk, cream, cheese, ice cream, butter and clarified butter-oil (ghee) and several other products. The Milk Unions have marketed milk and milk products of the value of Rs 202.87 crore during the year under report. As a cooperative, Milkfed is also instrumental in empowering milk producers, especially women and poor people, and fostering management skills. Milkfed runs regular courses for members in Co-operative Development. 1. MILKFED is providing technical input services like animal healthcare, supply of quality cattle feed, 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. Dairy Farmers are being encouraged to produce quality milk under the Clean Milk Production Programmes by paying premium price for quality milk. 4. MILKFED installed a bactoscan in its Milk Union, Ludhiana which is first in India for determining the bacterial counts in raw milk at different stages.
5.
During the last 3 years, 8 Milk Plants and 2 Cattle Feed Factories of MILKFED, Punjab was accedited with ISO-9002 and ISO-15000 (HACCP) Certification.
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6.
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.
7.
MILKFED has launched its own interactive Website on Internet for its prospective customers which can be accessed by clicking http//www.milkfed.nic.in
8.
MILKFED introduced liquid milk in new design packing with Mnemonic Symbol of Co-operative Milk in all the District Milk Unions.
9.
The turnover of MILKFED, Punjab during the year 2006-2007 was arrived at Rs. 725 crore.
Milkfed is serving nationwide consumers through its network of Regional offices and very strong Distribution channels. Milkfed markets a wide range variety of Verka products which include liquid milk, skimmed milk powder, whole milk powder, infant food, ghee, butter, cheese, lassi, SFM, Ice Cream, Malted food etc. The annual turnover of milkfed has crossed Rs.931 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 which include multi-national as well as private trade and other Cooperative Federations. Now Verka is known for its quality, freshness, purity and of course its homemade taste.
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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.
TURNOVER:
The annual turnover of Milkfed which was Rs.931 crores in the year 2007-08 has hit the level of Rs.1150 crores in the year 2008-09.
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3.
To bring transparency in all the milk collection, fat testing and payment, electronic milk-o-testers & automatic milk collection centres will be provided at village level Dairy Cooperative Societies.
4.
Expansion
of
butter
manufacturing
capacity
and
reconditioned
butter
manufacturing machinery will be installed. 5. Expansion of existing ice cream manufacturing capacity and set up additional Ice Cream Plant at Jalandhar. 6. Milkfed strives to give better and remunerative price to the farmers to make dairy attractive and sustainable profession. 7. 8. 9. 10. 11. 12. 13. 14 15. Providing improved technical input services to farmers. Setting up big commercial farms. More stress on clean milk production programme. Rural women empowerment. Massive modernization of process and operations. Enforcement of stringent quality parameters. Strenghthing market base with specific stress on consumer market. Dynamic enhancement in Verka product mix. To launch new value added milk products including long shelf life panner etc.
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Before the year 1992-1993 the milk procurement was in a very bad shape. Milk plant was running under capacity. The improvement in milk procurement by 40% was achieved in the year 1994-95 and the best achievement was made in the year 2000-01 about 42000 milk producers members are attached with the milk union through village level cooperative societies. Out of them 98% are running on profit. The average milk procurement per day in 60364 ltrs per day in 1998-99.
Inception
Milk Production is a very important part of the agricultural economy in the State of Punjab. Punjab is one of the smallest States in Indian Union with a total area of 50,362 Sq. Kms, which is 1.5% of the Indian landmass. Dairy Farming is an age-old subsidiary profession in the rural areas of Punjab. Punjab is the second largest milk producing state in India, producing around 10% of the countrys Milk Production i.e. 8 million tons annually.
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1. First Milk Plant, of the State was setup at Verka near Amritsar. 2. Milk Union, Bathinda was registered as a society in 1977 3. The brand name of Milk and Milk Products was adopted as Verka. 4. An ISO 9001:2000, HACCP: 15000 & export certified unit. 5. Turnover of Milk plant, Bathinda is Rs. 55 Cr. per annum 6. The capacity of the plant is 1.00 lac. Liter per day.
Objectives
1. To strengthen dairy sector, Milkfed came into existence in 1978 and Simultaneously Distt. Milk unions were formed. 2. Village level cooperative societies were also formed on "Anand Pattern". The system was run by the farmers, of the farmers and for the farmers. 3. To give remunerative prices to farmers and to ensure permanent market for the whole year. 4. To provide technical inputs like artificial insemination, to improve the breed of animals, animals health services, preventive disease treatment and awareness regarding farm management etc. 5. To provide ISI marks good quality balanced Cattle feed and fodder seeds to the farmers.
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1. Milk production in the area increased manifold with the result. Resultantly started receiving daily 2.50 LPD of milk. 2. To increase the participation of women 120 exclusively women societies are organized with 15300 women members. Through Punjab Women Dairy Project a Central Govt. sponsored scheme. 3. Milk Production in the area increased manifold with the result. Resultantly started receiving daily 2.50 Lac LPD of Milk and Peak procurement 4.5 Lac LPD. 4. To cater to the increased demand, necessity of expansion of milk plant arose. 5. This improved the socio- economic conditions of marginal and poor farmers. 6. The profitability of the plant and turnover of the plant improved a lot. 7. No. of societies increased from 94 to 751 and its membership from 5400 to 78000. 8. All the societies are in net profit and distributing bonus to its members.
1. To improve the quality of raw milk, Clean Milk Production program started in 650 villages and resultantly the quality of products increased. 2. Milk Plant, Bathinda is one of the milk plant in India in Dairy Sector to get ISO Certification. 3. Under ISO Certification and HACCP (IS 15000) Milk Union started export of Ghee, SMP to Gulf Countries Philippines, Manila, South Africa, Singapore, Bangladesh etc. The export is more than 5.5 crore during the last year. 4. To further improve the quality of Raw Milk, Milk Union started 365 Automatic Milk collection Stations at village level. 5. To meet the Challenges of WTO Milk Union started TIFAC program with the help of Ministry of information. 6. Bulk Milk Coolers have been installed at village level to chill the milk on this spot and to check bacterial count. 7. Further BMC has been approved under central govt. Scheme on 75% grant to be installed in societies.
CHILING CENTER:
At present six milk chilling centers are functioning under milk plant verka. The detail of which are as under: 1. M.C.C, Rampura, 4. M.C.C, Badal 2. M.C.C, Bhagta 5. M.C.C, Bhikhi 3. M.C.C, Talwandi Sabo 6. M.C.C, Sardulgarh
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The milk producers have been provided the inputs services like cattel feed and fudder seed.
FINANCIAL PERFORMANCE
Milk Plant, Sangrur has earned a Net profit of Rs. 110.51 in year 2000-2001 and in 2001-2002 was 261.54 lakh. In the year 2002-2003 plant has earned net loss of 40.63 lakh and in 2003-04 it earned net loss of 102.38 lakh. For the year 2005-06 and 2006-2007 it had net loss of 150.98 and 188.31 lakh respectively. The detail of Profit/Loss of last 6 years is as under:YEAR 2000.1 2001-02 2002-03 2003-04 2005-06 2006-07 PROFITILOSS (Rs. In lakh) 110.51 261.54 -40.63 -102.38 -150.98 -188.31
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CHAPTER IV
FUNCTIONS & HIERARCHY OF MARKETING SECTION
MRKETING DEPARTMENT
The marketing section plays a vital role in the plant and the union. The marketing section of Milk Plant, Bathinda is a well-functioning section, which seals the product produced here under a trade name of verka this marketing section covers following section Punjab as well as in others state in Haryana, Rajisthan. A. Punjab
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1. 2. 3. 4. 5. 6. 7. 8. B. Haryana
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ORGANIZATION STRUCTURE
The marketing department at Verka milk pant, Bathinda is one of the major part of whole management. This section is working in a well-designed structure. All the departmental activities are well co- ordinated and fruitful.
General Manager
Deputy
Manager Field sales Field sales Field sales
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SALIET FEATURES OF MILK PLANT VERKA 1. SUPPL OF LIQUID MILK Milk plant bathinda protects the interest of milk producers as well as the consumer of milk and milk products. It is supplying 28,000 Ltrs of milk per day to the urban population. Milk Plant Bathinda supplies fresh, hygienic pasteurized milk. The bathinda milk plant produce various kind of milk i.e. Full cream, Standard milk, Toned milk, Double toned milk and others milk products to serve different segment of consumer market. 2. Export of Ghee With the competition in the national market hooting up, efforts to export milk product has been made. Milk plant has exported 40 Mts. Of ghee to Gulf counties in the month of January and February 2010, which are around value of 3 Lac $
3. Automatic Khoa making machine.
Recently an automatic khoa making machine has been installed which can manufacture to Mts of khoa every day, which is most hygienic, fresh and is a base for most of the sweets.
4. Sweetened flavored Milk and Verka Lassi
A large numbers of milk bars have been started. In the city of Abohar , Bathinda, Malout, Muktsar, Moga, Bhagapurana, Nihalsingh wala, Mansa and a large network of dealers are also made to supply milk and milk products. The demand of sweetened flavored milk and verka lassi has increased manifold. 5. Milk Products The Milk Plant is manufacturing Skimmed milk powder, Whole powder, Ghee, Table Butter, Panner, Khoa, Namkeen lassi, Kheer and Milk cake. 6. Quality assurance The management of milk plant has adopted especial program on quality since two years called Quality Assurance Programme in which ensured that the final product must come out with national and international quality norms as per P.F.A. standards. The products also tested various standard laboratories like composite food laboratories.
Sale & market share of verka (Army) hygienic of the plant by army organization, the laboratories of Mother Diary, Aggmark and BIS, which is a proof of guaranteed quality. The quality products are also accepted on international standards.
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7. Financial Position The Financial Position was very week before 2008-09 which started improving with the improvement of milk procurement. The losses were reducing year to year and now a stage has come that the union will definitely earn net profit in the year 200910. The annual loses were incurred to the tune of 1.25 to 1.40 crores but in the year 2009-10 after wiping out such loses the union has increased at net profit.
Milk and Milk products are prepared as per the norms by pasteurizing the milk and others required process to fulfill the target/norms as per the market demand. Milk plan also got ISO-9001:2000 with HACCP (as per IS: 15000: 98) and also approved by the Export Inspection Agency New Delhi for export the milk products. Milk products having standards norms of PFA/BIS/EGG MARK and our prescribed specification if International Standards for export of ghee and Milk Powder to Dubai and Middle East Countries. Products : - (BRAND-VERKA)
Milk Ghee Skimmed Milk Powder Whole Milk Powder Table Butter Paneer Khoa S.F.M. Milk Cake
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Verka milk plant, Bathinda is serving wide consumers through its network of Regional offices and very strong Distribution channels. Milk plant markets a wide range variety of Verka products which include liquid milk, skimmed milk powder, whole milk powder, infant food, ghee, butter, cheese, lassi, SFM, Ice Cream, Malted food etc. The Union has a processing capacity of 100TLPD and drying capacity of 6.2 MTD. It also owns four Milk Chilling Centers namely Rampura (15TLPD), Talwandi Sabo (10TLPD), Bhikhi (15TLPD) and Sardulgarh (20TLPD). In addition the union has hired ice factory Bhagta with a capacity of 20TLPD.
1.
Fluid Milk
GENERAL COMPOSITION FOR MILK STANDARD MILK Percentage Cow Milk Buffalo Milk Fat Proteins Lactose Ash Water 4.6 3.4 4.9 0.7 86.6 6.6 3.9 5.2 0.8 84.2 Milk Fat % (Min) Milk SNF % (Min) 4.5 8.5
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Milk Fat % (Min.on dry matter basis ) Salts % (Max. By wt.) Stabilizer/Emulsifier % (Max. By wt.}
3.0
Preservative %(Max. By wt.) Sorbic Acid OR Nisin or both Calcium Chloride % (Max. By wt.)
0.1
60
Sale & market share of verka Anaerobic spores (Max/gm) Caliform Max./0.1 gm NIL 200
400
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Anaerobic spores Max/gm RAW CHEDDAR CHEESE Moisture % (Max.) Fat % (Min.on dry matter basis) Salts % (Max. By wt.) Stabilizer/Emulsifier % (Max. By wt.) Preservative % (Max. By wt.) Sorbic Acid or Nisin or both
200 PANEER 43 42 0.20 0.2 * 0.1 * Moisture % (Max.by Wt.) 60.00 Milk Fat % ( Dry Matter) 50.00 Acidity % L.A. (Max.by Wt.) 0.50 Bacterial Count/g Max. 5x100000
3. Flavoured Milk :
SWEETENED FLAVOURED MILK Milk Fat % (Min.) Total Milk Solids % (Min.) 1.65 17.0
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Sugar % (Max.) Turbidity Test Creaming Index Bacterial Spores per ml. (Max.)
6.0 Neg. 20 5
LASSI Milk Fat % Total Solids % (By wt.) Sugar % RASEEELA Cheese Whey % Sugar % Mango Pulp% Brix 40 12-12.5 10.00 15 3.0 to 3.4 20 - 23 12.00
GHEE (AGMARK)
Neg. 28.0
B.R.reading(40 degree C.) 40 - 43 P.Value 1.0 - 2.0 FFA % Oleic Acid( Max) 0.30 BUTTER TABLE Fat% (Min.) Curd % (Max) Salt % (Max) Coliform/ml. (Max.) Y&M (Max)/g 80.00 01.00 2.8 5 20 WHITE 82.00 00.06 01.50 5 20
ICE CREAM
Weight (g/lts.) Min. Total Solids (Min.) (By wt.) Milk Fat % (Minimum) Acidity, L.A. % (Max) By Wt. Sucrose % Max. (By Wt.) Stab. Emul. % Max. Bacterial Count/g (Max) Coliform/g (Max.) Phosphates Test
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KAJU PINNI
SKIMMED MILK POWDER Extra Standard Grade Grade Milk Fat % (Max.) 1.25 1.50 Moisture % (Max) 3.50 4.00 Titratable Acidity %L.A. (Max) 19.5ml 1.50 * of N/10 NaOH ** Insolubility Index(ml.Max) 0.5 2.00 Scorched Particles(Max) 15 mg 15 mg (DISC.B) (DISC.B) Total Ash % (Max.) 8.2 8.2 Lactate Content (Mg/g.Max) 1.50 Bact. Count/ g.Max) 40,000 50,000 Coliform Count/g.Max) NIL NIL * Except Production designated as "High Heat" which shall not be more than 2.0 ml ** Except Production designated as "High Heat" which shall not be more than 2.5 ml
MILK POWDER Moisture % (Max.) 4.00 Total Solids % (Min.) 96.00 Fat % Min . 26.00 Insolubility Index (Max.) 0.5 ml * Titratable Acidity % (Max.) 1.20 Bacterial Count/gm (Max.) 40,000 Coliform Count/0.1 g(max.) Absent Staphylococcus aureus/0.1g (Max) Absent Salmonella/25g Absent Shigella /25g Absent * Insolubility index as per ADPI is 1.0 ml for extra grade and 1.5ml for Starndard Grade.
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MALTED MILK FOOD WITH COCO POWDER Moisture % (Max.by wt) Total Fat % (Min.on dry basis ) Total Ash % (Min.on dry basis ) Acid insoluble Ash % (Max.) Solubility % (Max.) Cocoa Powder % (Min) SPC/ gm (Max.) Coliform Count/gm (max.) 5.0 6 5 0.1 80 5 50,000
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PRODUCTS
PACKING
GHEE POLY PACK/MONO CARTON 500 gms. & 1 Kg. GHEE TIN PACK 500 gms., 1 Kg., 2 Kg., 5 Kg &15 Kg. TABLE BUTTER 10 gms., 100 gms. & 500 gms. CHEESE PIZZA CHEESE VERKA VIGOUR DAIRY WHITENER SKIMMED MILK POWDER WHOLE MILK POWDER SWEETENED FLAVOURED MILK SWEET LASSI MANGO RASEEELA PINE APPLE RASEEELA MILK CAKE /PEDA KAJU PINNI MILK POUCHES U.H.T. MILK 200/400 gms. Cekatainer, 200 gms. Singles, 400 gms Tin & 1 Kg. Brick 200 gms. & 1 Kg. Pack 500 gms. Jar, 500 gms. Refill & 1 Kg. Jar 500 gms. Pkt. & 10 Kg. Tin 200 gms. & 500 gms. Bottle, 500 gms. Cekatainer 1 Kg. Pkt. & 25 Kg. Bag 500 gms.Tin, 1 Kg. Tin, 10 Kg. Tin 200 ml. Bottle, 200 ml. Tetrapak 200 ml. Tetrapak 200 ml. Tetrapak 200 ml. Tetrapak 200 gms Pkt. 50 gms. Pkt. Full Cream, Standardised, Toned, Double Toned & Skimmed. 1 Lt. Tetrapak Standardised & Toned
CHAPTER VI
MARKETING
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STRATEGIES
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MARKETING STRATEGIES
The starting point for the effective marketing strategy is the consumer and his product preferences. Studying the consumer closely, analyzing his needs, life styles and standard of living will enable marketer to formulate effective marketing strategies. Elements for effective marketing strategies are:1. 2. 3. 4. 5. 1. Product planning Pricing Positioning of product Distribution channel planning Promotional planning Product Planning:Before entering into the production process, it would be important to understand the likely improvements and modifications required in the existing products. The production design, colu and quality ought to be planned as per demand and the taste of the consumers. This would help
make products acceptable to the population. For example, it has been observed that rural consumers relish "Homemade ghee" which is prepared
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by heating butter obtained by churning curd. This process induces a peculiar attempt the ripening process for manufacturing ghee and should develop flavor as close to that of the "Home made ghee". The packing of products should be strong enough to with stand rough handling. The size of packing should be smaller than urban retail pack so as to suit the affordability by the rural masses. A low unit price pack is desirable because of the low purchasing power of rural consumers. 2. Pricing:Price is an important element of the marketing strategy. The role of price becomes more significant because of low purchasing power of the Indian population. This factor should be considered while pricing the product. For example, the price of ghee must be lower than the cost of manufacturing ghee at home by milk producers; otherwise they would not find it attractive to buy from the market. Packing cost of the product should be kept as low as possible.
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3.
Positioning of Product:After analyzing the preferences of the rural consumer a firm should
position its product in an appropriate way. The positioning of the product can be done in many ways. For example:a) b) c) Low price positioning Positioning on the sense of belongingness Quality leadership After analyzing the product attributes and studying the rural habits, tastes and life style, one can come up with a proper strategy to position the milk products in rural areas. 4. Distribution Channel Planning:Distribution is a major problem in marketing. In spite of the growing awareness about the potential of market, most marketing firms have failed to tap it because they could not develop an effective distribution system. The most of areas hardly have any agents, dealers or stockiest. Milk Plant has an advantage over the private enterprises because of their daily
milk collection network of village level societies. The society works as stockiest/dealer and the secretary of the society becomes a good medium
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to route the products to the ultimate consumer. Therefore, if the secretary is given retailer's margin, he gets motivated to sell the products. Credit facilities against the milk sale can also boost the sales. Gram Seva Samiti can also be used as sales point by giving them suitable margin. 5. Promotional Planning:While deciding on as to which media would reach the prospective buyers effectively, the socio-cultural background, the literacy level and their media preferences need to be studied. Rural people with low literacy level would only remember brands by picture symbols as opposed to brand names. For the such consumer a message should be simple and design should be catchy to comprehend. As mentioned earlier one should understand the psychology of the consumer before designing the "Message". Rural milk producers generally perceive that converting milk into ghee at home is a cheaper proposition. The message should so designed as to break these notions of rural masses. Rural people should educate that conversion of milk into ghee at home is a costlier proposition. Posters in this context should be pasted at
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various societies and message should be communicated through village extension workers. Personal contact of village extension workers and secretary with the producer members also plays an important role. Milk van could be painted with advertisements of the brand of the Milk Plant to increase awareness. Because of literacy level in rural areas, media selection becomes a problem. However, "Word of mouth" advertising will emerged as the most effective means of advertising and communications. It is also felt that opinion leaders and important informants in the village have a greater role in improving product image. Field team should contact them and seek their help. Another popular effective rural media is "Wall painting" which is already done by the Milk Plant's authority in case of sale of Verka cattle feed. Propaganda and demonstration vans, loudspeakers and participation in village fairs & melas help in turning the villagers into buyers.
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1.
Union-wise targets/achievements of liquid Milk (City Supply) during the year 2009-10 and upto May, 2010 as comparison to the same period of last year and targets for the month of June & July, 2010.
Year 2009-2010
Period April May June July August Sept. Oct. Nov. Dec. Jan. Feb. March Total
Target 2009-10 22000 22000 24000 26000 30000 30000 29000 26000 25000 25000 26000 26000 25915
Achievement 2008-09 2009-10 18855 19687 21948 22263 23183 26009 23123 27802 22758 28780 22903 27927 21733 24429 19268 22850 18728 22513 18097 21904 18790 22379 18112 23094 20624 24124
+/- % over last year +4.4 +1.4 +12.2 +20.2 +26.5 +21.9 +12.4 +18.6 +20.2 +21.0 +19.1 +27.5 +17.0
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Year 2010-2011 Up to May 2010 & Targets for June and July 2010.
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2.
Union wise Sale of fresh milk products i.e. Paneer, Curd, Lassi, (Plain & Namkeen) & Kheer for the year 2009-10 and for April, 2010 against the targets and in comparison to same period of last year and targets for the months of June & July, 2010.
Particular
Achievement 2008-09 95.577 115.578 16411 15.446 2009-10 106.637 172.829 197585 17.236
Sale of Paneer
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Sale of curd:
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Sale of kheer:
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3. Milk Union wise & Branch sale office wise sale of Consumer Pack Ghee and Table Butter for the year 2009-10
Particular
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4.
Sale of tetra pack products, PIO, & Ice Cream for the year 2009-10
Particular
Achievement 2008-09 567081 140130 243840 32373 2009-10 624807 213219 324300 48545
Rassila 200 Ml. Pkts. Lassi 200 Ml. Pkts. Pio Bottles 200 Ml Ice-Cream Ltrs.
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Average city Supply (LPD) Fresh Products Paneer (MT) Curd (MT) Kheer (MT) Lassi (Namkeen) Ltrs. Tetra Pack/Ice-Cream Rassila 200 Ml. Pkts. Lassi 200 Ml. Ptks.
20624
24124
+17.0
Pio Bottles 200 Ml. Ice-Cream Products (MT) Ghee WMP Table Butter Panjiri Ltrs.
CHAPTER VIII
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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
For achieving the objectives of study, survey was conducted. For survey, personal interviews of the Management & workers were undertaken. Personal interviews of official working in the milk plant was selected as the mode of survey to make the study more meaningful & so that maximum information could be collected. For conducting the personal interviews of the workers, a questionnaire was made. The questionnaire was structured with open ended & close ended questions. The Shopkeepers were selected as respondent to the questions as it was easy to access them and they can provide valuable information in bulk and systemize form. We try to identified there taste, preference, various aspects whom they give
weightage while selecting a particular brand to deal in and attempts were also made to check there knowledge about different milk brand, different products made by verka, and the storage condition of milk and milk made products.
USEFULNESS OF STUDY
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The study can be useful to the company as they might come to know about the importance of brand image and marketing strategies in the Verka Milk Plant. Milk plant can also track down the various topicAnd also the new brands entering into the market in dairy industry there market sahre and impact on consumer. The study can be of great importance to the company.
Sample Size:
I have used printing as well as secondary data. Some data is been taken from internet, some from MILKFED literature and some is gathered through questionnaire.
LIMITATIONS OF STUDY
1. Due to the limitation of time and financial resources it was not possible to collect information from the whole population so the sample statistic may vary from population.
2. The information provided by the shopkeeper is not definitely true. 3. The samples of shopkeepers may not be representative of the total
population size.
4. The shopkeepers hesitate disclosing the true facts like their core
preference to profit margin in dealing so the result may vary from original somewhat.
5. There is no measure to check out whether the information provided by
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busy with some other thing at the similar time answering the question. So negligence of shopkeeper may lead to some variation in results.
Analysis of information:
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Q.1 In how many Milk Brands do you deal in? Verka Baba Milk Saras Today Milk Shud Others,Specify
24 18 6 25 3 1
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22 9 4 16 2
1 11 4 5 18 13
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Yes No
14 36
1 2 8 5
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Yes No
40 10
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It is not available at all times Cost is higher than others Quality is not better. Profit margin is very low
16 1 7 11
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Q8 Are you aware about the following Verka product for different segment/consumer?
50 50 25
Sale & market share of verka Rasila Table Butter Paneer Khoa Curd Milk Cake
43 41 48 37 48 40
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Yes No
43 7
Sale & market share of verka Q10. Are you aware about the storage condition of Verka milk?
Yes No
40 10
Jul. 8
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27 1 11 5 11
Jul. 8
5 37
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11 16 12 5 2 3
Jul. 8
1 11 11 27
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16 10 16 7
Jul. 8
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SUGGESTIONS & RECOMMENDATION Though the survey revealed that rural people like Verka's products to a great extent and there is more demand of Verka brand but then also
some people want a change in its price, quality, quantity and some in availability. Therefore, to make its customers fully satisfied, some
Jul. 8
measures should be taken which will also add to its sales and improve its position in the rural market. So, there were some suggestions given by the people which are summed up as follows:a) Increase in profit margin:Generally, shopkeepers are not satisfied with the prices of 'Verka products'. They feel the products are bit expensive & provide a very little profit margin. Some other dairy brand like Baba milk, Today milk give big share of M.R.P. as profit margin compare to verka thus we should try to increase the profit margin. So that market share of verka may increase and we could dominate the market. b) Distribution System should be improved:Shopkeepers of large area are not satisfied with the distribution system. So, distribution system should be improved and verka should maintain its access even to small shopkeepers. c) Lack of Advertisement:-
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Significant no of shopkeepers
advertisement of the brand Verka. It should be made popular through more and more advertisements and schemes so as to attract people of all age groups. More hoardings should be put in villages and with the help of word of mouth more awareness about products should be given. d) Availability :The products of Verka should be easily available in societies. There are some area where Verka products are not available easily in societies. Therefore, Verka should expand its market in rural area, so that products are available easily. More variety of products should be send to the societies. e) Communication and soft skill training:- Some dealers complaint
about the behavior of delivery boys. They are the face of the company need to provide proper training that who to deal with the shopkeepers and get work done.
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CHAPTER X CONCLUSION
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CONCLUSION
Working at Verka Milk Plant, Bathinda 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 Products and market share of verka provide me an opportunity to deal with real time problems in day to day working of organization. Working with the other management students from various college and university give me a chance to learn a lot from them. It was an amazing experience with learning all the way, which helped me to brush up my knowledge and skills.
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SWOT ANALYSIS
Strengths:1. 2. 3. 4. Good brand image of Verka products in the mind of people. Brand Loyalty among the people for Verka products.
Faith on Verka products by the rural and urban population. Rural people satisfaction with quality, price, quantity and availability is also strengthen the dairy business.
Weaknesses:-
1.
signs, etc. 2. 3. Lack of proper distribution system. Lack of proper marketing network in rural areas as like in urban
areas. 4. Very high rates of products such as sweet lassi Rs.10/100g only.
Opportunities:-
1.
Greatly improved expert potential for milk products of western as well as traditional types.
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2. 3. 4. 5.
Proper utilization of available resources to decrease the per unit cost. By product utilization for import substitution. Growing demand for milk and milk products. Cost of procurement of raw milk could be decrease significantly.
Threats:-
1. 2. 3.
Introduction of foreign products in Indian market. Poor quality of raw milk. The liberalization 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.
5.
A large number of brands entering into dairy industry and there increasing market share.
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BIBLIOGRAPHY
BOOKS
KOTHARI CRS, RESEARCH METHODOLOGY Second Revised Edition Publishers-New Age International (P) Ltd
NEWSPAPERS
1. AJIT 2. THE INDIAN EXPRESS 3. DAINIK JAGRAN
WEBSITES
1. www.milkfed.nic.in 2. www.milffed.org 3. www.indiaagronet.com/indiaagronet/Dairy.htm 4. www.punjabgovt.govt.in/government/milkfed.htm
5. www.hindu.com/thehindu/2001/10/11/stories/0611000c.htm
I Ajay Sumeet Gera hereby declare that the information submits in questionnaire will be used only for research purposes not to serve any legal or other measures
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Profit Margin
Q6. Do you have faith in Verka products? Yes No Q7. If, dont like Verka products, please specify reasons? It is not available at all times Cost is higher than others Quality is not better. Profit margin is very low
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Q. 13 Which media influence most in advertisement? T.V. Signboards Banners Wall paintings Pamphlets News paper Q.14 Effect of advertisement on sales? No effect Nominal effect Some what Great
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Respondents Particular..
Name:________________________ No._______________________ Address:_______________________________________________________________ ______________________________________________________________________ __________ Contact