Sagar

To find out total market size of Sumul Milk and Competitors Survey PROJECT BBA-307 SUBMITTED TO
METAS ADVENTIST COLLEGE

ATHWALINES, SURAT IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF BACHELORS OF BUSINESS ADMINISTRATION IN MARKETING SUBMITTED BY Sagar .B. Patel B1201216 UNDER THE GUIDANCE OF Mrs. Rangita Mam
THE NORTH EASTERN HILL UNIVERSITY (NEHU)

SHIILONG MEGHALAYA APRIL 2013
Total market size of Sumul Milk & Competitors Survey
DECLARATION
I, the undersigned, SAGAR PATEL, student of BBA, hereby declare that the project work presented in this report on To find out total market size of Sumul Milk and Competitors Survey and organization overview at SUMUL DAIRY is my own work and submitted by me to METAS ADVENTIST COLLAGE, Surat towards the partial fulfilment of the BBA program. This project is entirely outcome of my own efforts and the report prepared there is based on the knowledge and the work done by me in the company during the project work. I further declare that to the best of my knowledge, to any other university or Institute for any examination, this report is not submitted by anyone else.
Place: SURAT Date: (Mr. Sagar.B.Patel) ( S.Y BBA )
Metas Adventist College
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Acknowledgement
I feel great pleasure to present this summer training report on TO CHECK TOTAL MARKET SIZE OF MILK IN SURAT CITY AND COMPETITORS SURVEY and organization overview at SUMUL DAIRY, Surat. Being a student of BBA it is my pleasure to have and opportunity to present this Industrial Summer Training report at METAS ADVENTIST COLLAGE. I would like to thank SUMUL DAIRY for giving me an opportunity to complete my project. I wish to give grateful acknowledgements to myrespective project guide Mr. Manish Bhatt (Asst. Marketing Manager)in SUMUL DAIRY and all the staff members of SUMUL for giving me invaluable information and guidance on the necessary the theoretical aspect and methodology for handling my work, without their valuable guidance, this project report can not be made possible. A special word of thanks to Dr.M.S. Jeremiah, President & CEO (METAS ADVENTIST COLLAGE) as this type of analysis work is the core function of management studies. My sincere thanks are also to my project guide Mrs. Ranjita for his guidance and technique about report writing that have been a key factor in the successful completion of this project. Last but not the least I acknowledge the support and encouragement of my parents, teacher and friends. Place: Date: (Mr. Sagar.B.Patel) Yours faithfully
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INDEX
SR NO. 1 1.1 1.2 1.3 1.4 1.5 1.6 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 3 4 5 6 7 8 9 9.1 9.2 9.3 9.4 9.5 10 11 12 13 14 15 RESEARCH METHODOLOGY Marketing Research Research Design Data Collection Tools Sampling Design Limitation Of Research DATA ANALYSIS FINDING RECOMMENDATION CONCLUSION BIBLIOGRAPHY ANNEXURE Metas Adventist College CONTENTS INDUSTRY PROFILE What Is Dairy ? Dairy Industry In India Background Of Industry. History Of Indian Dairy Nddb Swot Analysis COMPAN PROFILE Introduction To Sumul History Of Sumul Glimse Of Sumul Milestone Of Sumul Sumul Vision And Mission Statement Work Area Of Sumul Turnover Of Company Organisation Structure HUMAN RESOURCE DEPARTMENT PRODUCTION DEPARTMENT FINANCE DERPARTMENT MARKETING DEPARTMENT PRODUCT MIX THEORETICL ASPECT 71 72 73 76 76 77 78 100 102 104 106 108 Page 4 PAGE NO. 5 6 6 7 12 13 14 16 17 18 20 21 23 25 27 28 29 39 44 49 56 67
1. INDUSTRIAL PROFILE
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1.1 WHAT IS DAIRY?

A dairy is a facility for the extraction and processing of animal milk mostly from goats or cows, but also from buffalo, sheep, horses, or camels for human consumption. As an adjective, the word dairy describes milk-based products and processes, for example dairy cattle, dairy goat. A dairy farm produces milk and a dairy factory processes it into a variety of dairy products. In New Zealand English a dairy means a corner shop, milkbar or Separate and dairy factory is the term for what is elsewhere a dairy. In the UK a dairy is a processing facility that turns milk into a range of products.
1.2 Indian dairy Industry - a profile

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. As he expands his overseas operations to India many profitable options await him. He may transfer technology, sign joint ventures or use India as a sourcing center for regional exports. The liberalization of the Indian economy beckons to MNC's and foreign investors alike. Indias dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japans $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at around Rs7,00,000mn
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1.3 Background Information

India is the worlds largest producer of dairy products by volume and has the worlds largest dairy herd. The country accounts for more than 13% of worlds total milk production and is also the worlds largest consumer of dairy products, consuming almost all of its own milk production. Dairying has been regarded as one of the activities that could contribute to alleviating the poverty and unemployment especially in the droughtprone and rainfed areas. In India, about threefourth of the population live in rural areas and about 38% of them are poor. Therefore among these people, as well as the large vegetarian segment of the countrys population, dairy products provide a critical source of nutrition and animal protein to millions of people in India. Prior to year 2000, India was not noticed by most international dairy companies, as the country was neither an active importer nor an exporter of dairy products. Although India has imported some milk powder and butter oils as aid between 1970 and 1990, exports from India were insignificantly small and it was not until 2000 onwards, when Indian dairy products started having more presence in global markets. Milk production in India has developed significantly in the past few decades from a low volume of 17 million tons in 1951 to 110 million tonnes in 2009. Currently, the Indian dairy market is growing at an annual rate of 7%. Despite the increase in production, a demand supply gap has become imminent in the dairy industry due to the changing consumption habits, dynamic demographic patterns, and the rapid urbanization of rural India. This means that there is an urgent need for the growth rate of the dairy sector to match the rapidly growing Indian economy.
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Key Statistics: Annual Milk Production (2008-9)5 Annual Export Volume (2008-9)6 Share of world dairy production (2010)7 Share of world trade in dairy products (2003)8 Milking herd size 9
108.5 Million Tonnes 70,790 Tonnes 15% 0.3% 115.5 million 170 96,000 15 250g/day 40-50% 65% 75 million women/ 15 million men
Number of milk producers cooperative unions Number of local dairy cooperatives Number of state cooperatives 10 Per capita consumption (Drinking milk) 11 Estimated percentage of dairy farmers in organised sector 12 % of dairy produce consumed by unorganised sector 13 Dairy industry workforce 14
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Production of milk in India

E= estimated T= target / expected Source: DFPI, Annual Report-1999-2000 Year 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00(E) 2000-01(T) Production in million MT 48.4 51.4 53.7 56.3 58.6 61.2 63.5 65 68.5 70.8 74.7 78.1 81.0
World's major milk producers(Million

MTs) Country India USA Russia Germany France Pakistan Brazil UK Ukraine Poland New Zealand 1997-98 71 71 34 27 24 21 21 14 15 12 1998-99 ( Approx.)
11
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Industry Structure, Production and Consumption

Industry Structure
While it is estimated that around 40 to 50 percent of Indian dairy farmers are employed by the organised sector, approximately 65 percent of milk in India is consumed (in fluid or processed forms) on farm or by the unorganised sector including local milk vendors, wholesalers, retailers, and the producers themselves. Of the total milk distributed jointly by both the organised and unorganised sector, around 46 percent of the milk is consumed in fluid form and the rest is processed into various milk products such as butter, yogurt and milk powder. Indias milk processing industry is small compared to the large amount of raw milk produced every year. Almost 55 percent of the milk produced is consumed by the producer household. Of the remaining, twothird is sold in informal markets and 1516 percent of the total milk produced in India is processed by the organised market, including dairy cooperatives and the private sector. During 19992000, there were around 770 dairy processing units in the organised sector. Vendors and milk dealers dominate the informal market where the former generally procures milk from producers and sells them to urban households, while the latter supplies to private processing units. Of the milk that enters the formal and informal market, almost 45 percent is consumed in the raw form while the remaining is processed to produce ghee, khoa, butter, curd, milk powders, cottage cheese, etc.
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Production
The Indian dairy sector is different from other dairy producing countries as India places its emphasis on both cattle and buffalo milk. Out of all bovine population in India, 40 percent are indigenous cows, 46 percent are buffaloes and 14 percent are imported European or North American cattle crossbreeds. Out of the nations total milk production, about 55 percent comes from buffaloes, and the remainder from dairy cows. Traditionally, buffalo milk has been preferred for its high milk fat content. However, as the organised sector procures more milk, dairy cattle becoming more popular due to their increased yields and shorter dry periods.
Indian Milk Production by State (in thousand tonnes)
Consumption growth and industry response

Despite its huge production volume, India nevertheless faces a milk supply gap due to increasing demand from a growing middle class population. Estimation suggests that Indian dairy production is growing at a rate of about four percent per year, yet consumer demand is growing at approximately double that rate. In response to increasingly strong demand for milk products, the Indian dairy industry is growing its milk production in several ways. For example, dairy farmers have responded to increasing dairy prices by increasing herd sizes. In addition, those farmers working directly with buyers from the organised sector generally have access to modern extension services, which provide support for the dairy farmers to improve management, feeding, fertility and veterinary care. Many of these extension service providers offer artificial insemination services that aim to further improving milk yields with new dairy cattle genetics. Artificial insemination services are expected to grow in the future, as the government of India continues to develop protocols for imported genetics products. Finally, commercial dairies are also continuing with strengthening their presence in India. Metas Adventist College Page 11
1.4 HISTORY OF INDIAN DAIRY

Milking the old-fashioned way People milked cows by hand, in some countries small numbers of cows are still milked by hand. Hand-milking is accomplished by grasping the teats in the hand and expressing milk by either squeezing the fingers, progressively, from the udder end to the tip or by squeezing the teat between thumb and index finger then moving the hand downward from udder towards the end of the teat. And repeat using both hands for speed. Both methods result in the milk that was trapped in the milk duct being squirted out the end into a bucket that is supported between the knees (or rests on the ground) of the milker who usually sits on a low stool to accomplish the milking task. In early times the cow, or cows, would stand in the field or paddock while being milked. Young stock, heifers, would have to be trained to remain still to be milked. In many countries the cows were tethered to a post and milked. The problem with this method is that it still relies on quiet animals because the milking end of the cow is not restrained. In northern countries where cows are kept in barns in winter, and much of the rest of the year, they are still tethered only by the neck or head, particularly where they are kept in small numbers. Milk-producing animals have been domesticated for may thousands of years. Initially they were part of the subsistence farming that nomads engaged in. As the community moved about the country so did their animals accompany them? Protecting and feeding the animals were a big part of the symbiotic relationship between the animal and the herder. In the more recent past, people in agricultural societies owned dairy animals that they milked for domestic or local (village) consumption, a typical example of a cottage industry. The animals might serve multiple purposes (for example, as a draught animal for pulling a plough as a youngster and at the end of its useful life as meat). In this case the animals were normally milked by hand and the herd size was quite small so that all of the animals could be milked in less than an hour about 10 per milkier. With industrialization and urbanization the supply of milk became a commercial industry with specialized breeds of cow being developed for dairy, as distinct from beef or draught animals. Initially more people were employed as milkier but it soon turned to mechanization with machines designed to do the milking. Historically, the milking and the processing took place close together in space and time on a dairy farm.
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1.5 NDDB (National Dairy Development Board)

The National Dairy Development Board was created to promote, finance and support producer-owned and controlled organisations. NDDB's programmes and activities seek to strengthen farmer cooperatives and support national policies that are favourable to the growth of such institutions. Fundamental to NDDB's efforts are cooperative principles and cooperative strategies. The National Dairy Development Board (NDDB) was founded in 1965 to replace exploitation with empowerment, tradition with modernity, stagnation with growth, transforming dairying into an instrument for the development of India's rural people. NDDB began its operations with the mission of making dairying a vehicle to a better future for millions of grassroots milk producers. The mission achieved thrust and direction with the launching of "Operation Flood", a programme extending over 26 years and which used World Bank loan to finance India's emergence as the world's largest milk producing nation. Operation Flood's third phase was completed in 1996 and has to its credit a number of significant achievements. As on March 2006, India's 1, 17,575 village dairy cooperatives federated into 170 milk unions and 15 federations procured on an average 21.5 million litres of milkevery day. 12.4 million farmers are presently members of village dairy cooperatives. Since its inception, the Dairy Board has planned and spearheaded India's dairy programmes by placing dairy development in the hands of milk producers and the professionals they employ to manage their cooperatives. In addition, NDDB also promotes other commodity-based cooperatives, allied industries and veterinary biological on an intensive and nation-wide basis. The Dairy Board's strength lies in leveraging the capabilities of milk marketing federations and milk producers' cooperative unions to bring high quality services and modern technology to the service of rural India. Our more than 40 years' experience helping to create a national network of dairy cooperative institutions has been adapted and extended to other commodities and areas. Our constant effort to learn and to enrich our experience is central to our approach and our capacities.
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1.6 SWOT ANALYSIS

Strengths:
Demand profile: Absolutely optimistic. Margins: Quite reasonable, even on packed liquid milk. Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to your product line. Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years.
Weaknesses:
Perishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life. Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved. Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why cant we sell other dairy products too? Moreover, it is only a matter of time before we see the emergence of a cold chain
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Opportunities:
"Failure is never final, and success never ending. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of never ending success! If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped: Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition: Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building. Addition of cultured products like yoghurt and cheese lend further strength - both in terms of utilization of resources and presence in the market place. A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunities. Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals. Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular.
Threats:
Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance. The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics).
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2. COMPANY PROFILE
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2.1 INTRODUCTION TO SUMUL

The Sumul district co-operative milk producers union ltd (SUMUL Dairy) is a co-operative endeavor committed to help marginal farmers and down trodden tribal to lead to a healthy life and better standard of living through scientific animal husbandry practices. Todays Sumul enjoys the pride to serve milk and milk products to populous Surat city and surrounding towns of it. Sumul is holding strong brand equity in Surat district and command more than 70% of the liquid milk in Surat city, to make the distribute system fast and the delivered milk in time. The area of operation of Sumul is the entire district of Sumul. The present milk procurement of 160,929,736 liters of milk annually makes it the third largest union in the state after the AMUL and Mahesana dairy. The present market of Surat for liquid milk is around 6.90 lack liters per day. This has necessary active development of by product market. Products so far introduced are Paneer, ghee, flavored milk, sweet, shrikhand, lassi, butter milk etc. Sumul consist of 13 board of directors one each of 13 talukas of Surat district and they from themselves elect the chairman. The total numbers of employees are about 1100 besides the contract workers. Under Sumuls activities, Surat district is now firmly established as a milk shed and is growing from strength to strength. Hence, the Surat district co-operative milk producers union ltd, SUMULis trade name and literally meaning sound process, came in to existence on August 22, 1951 The formal commissioning of the pasteurization plant on March 17, 1968 was a turning point of Sumul.
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2.2 HISTORY OF SUMUL

Sumul or Surat Milk Union Limited, which is now renamed as The Surat District Co-operative Milk Producers' Union Ltd, is one among the 17 district unions which acts as manufacturing units of dairy products for Gujarat Co-operative Milk Marketing Federation Limited, the marketers of Amul brand of products. Surat District has been a Pioneer in India in channeling trade in Cotton and Milk through co-operatives. Before SUMUL stepped in, traditional Private Milk Traders were dominant in the area. The private trade was monopolizing the Milk market and exploiting both the Milk Producers and Consumers alike. The milk procurement price which used to be fixed by the traders (traditional Bhatias) was very low and was fluctuating from time to time at their sole discretion. These has capitalized on the absence of any infrastructure and processing facilities and has managed to keep producers from deriving equitable benefits from the marketable surplus generated. As such their income from milk was very low and they had no incentive for modern dairy farming. The farmers resented the system, but were helpless in the face of these traditional constraints and to their own lack of resourcelessness. Dairying on the other hand, was never popular with tribal's (a major rural population in the District) as practically no infrastructure existed for milk marketing in their talukas, inaccessibility to their villages as well as taboos regarding keeping of buffaloes prevented the entire population of tribal's from considering dairying as a source of income. Hygienic and pure milk was almost unknown in the market. In fact unbridled adulteration of milk was practiced by these traders to meet the growing demand of milk in the city. To salvage the poor producers from the clutches of these Private Traders, Organisation and integration of procurement, processing and marketing of milk and milk products by the producers themselves on a sound co. operative line was essential; this would also ensure elimination of middlemen, equitable distribution of benefits to Rural Milk Producers and indirectly to urban milk consumers as well.
Hence, the Surat District Co. operative Milk Producers' Union Ltd., SUMUL is trade name and literally meaning sound price, came into existence on August 22, 1951.
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Board of Directors
Name 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Shri Mansinhbhai Kalyanjibhai Patel Chairman Shri Pravinbhai Namlabhai Gamit Shri Arvindbhai Singabhai Gamit Shri Jayeshbhai Natvarbhai Patel Shri Jitendra Dhirajlal Desai Shri Manojbhai Naranbhai Patel Shri Rajeshkumar Kantilal Pathak Shri Ramanbhai Ukadiyabhai Gamit Shri Nareshbhai Bhikhabhai Patel Shri Bharatsinh Gomansinh Solanki Shri Ajitbhai Jagubhai Patel Shri Jaysingbhai Dungariyabhai Vasava Shri Bharatbhai Sudambhai Patel Shri M. S. Saiyad Dr. S. T. Desai / Dr. K. K. Pramanik Vice Chairman
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2.3 GLIMPSE OF SUMUL

1. Date of Registration 2. Date of commissioning of Pasteurization Dairy Plant 3. Dairy Plant capacity at the time of commissioning 4. Present capacity of Dairy Plant 5. Milk Powder Drying capacity 6. Milk Chilling Plants alongwith capacity of Milk Chilling Bajipura Uchchal Navi Pardi Chasvad Dediapada 7. No. of Milk Producers Co-op. 8. Total membership and Nos. of Primary Milk Producers' Co.operatives. : a) Tribals b) Non-Tribals Society 898 79 Membership 1,71,502 32,703 204205 956 22nd August, 1951 March, 1968 50,000 ltrs. per day 5,00,000 ltrs. per day 12.5 MTs. per day 3,00,000 ltrs. per day 1,00,000 ltrs. per day 2,00,000 ltrs. per day 30,000 ltrs. per day 30,000 ltrs. per day
9. Milk Co.operatives Managed by women 81 10. No. of Mobile Veterinary Clinics 11. No. of Veterinarians 12. No. of A.I. Centres 13. Cattle feed Mixing Plant capacity sale 22 40 130 300 Mts. per day Producers Metas Adventist College
14. Mineral Mixture Plant : Production and : 45000 packets for Milk
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2.4 Milestone of Sumul Dairy
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OBJECTIVES
The Sumul Dairy was established with the following objectives: To provide guaranteed remunerative milk market round the year for surplus milk. To provide maximum return to producers To Provide good quality Milk and Milk Product to consumers To increase milk productivity at most economic rate by providing technical input services to the producers.
2.5 FUTURE OBJECTIVES OF SUMUL

The Sumul Dairy shall provide proper Nutrition and Good Health to its customers in addition to achieving customer delight.
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2.6 Sumuls Vision Statement
We are socially responsible organization with commitment to consumer delight and respect fro all. We believe in growth and continuous improvement through teamwork, trust & excellence without compromising our honesty and integrity
Values Excellence Dedication Team work Cooperation Ownership Trust and courage Honesty Transparency Self leadership
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Sumuls Mission Statement

SUMUL is the market legend capturing 78 % of market in Surat and want to be the most believable Organization going towards Total Customer Satisfaction up to the Customer door. SUMUL Dairy has prepared Mission-2020 on the basis of Vision and Values. Overview of Mission- 2020 is as follows:
MISSION-2020 Attributes Turnover Milk Procurement Milk Sale Cattle feed Woman empowerment BCU vehicle 2006-07 Rs. 607 Crores 6,59,682 kg/day 595,595 LPD 300 Mt / day 109 societies 91 2019-20 Rs. 2500 Crores 14,10,000 kg/day 13,00,000 Liters/Per day 750 Mt / day 200 societies 425 Liquid milk in pouch
Distribution systemthrough insulated Only products
It is quite obvious from the mission statement of the Sumul; the organization is committed to customer satisfaction and believes in providing the highest quality of product to them. Infect, for ensuring highest quality product, it has already put into practice TPM and TQM tools in the organization besides many Quality Circle (QC) and Small Group Activity (SGA) operating in the organization to achieve the vision and mission.
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2.7 WORK AREA OF SUMUL

Sumul is very popular Brand not only in Surat but it is even more popular in rural areas of Surat. Basically work area of Sumul is covered the Surat city & its rural areas. The map of Work Areas of SUMUL shows the outline of areas.
Unit SUMUL DAIRY Navi Pardi Chilling Centre Uchchhal Chilling Centre Bajipura Chilling Centre Sumuldan Factory Nasik Plant Nizer Chilling Centre
Place Surat Navi Pardi (N.P.C.C.) Uchchhal (U.C.C). Bajipura (B.C.C.) Chalthan (S.D.F.) Nasik Nizer
Capacity 11 Lakh LTPD 2 Lakh LTPD 1 Lakh LTPD 3 Lakh LTPD 200 MT PD 50000 LTPD 63.000 LTPD
Employees 950 66 49 113 96 --16
Distance From Surat 0 km 25 km 105 km 50 km 18 km
175 km Page 25
SUMUL dairy is located near railway station road in Surat. It covers 15,000 acre land. Sumul provides milk collection facilities at the producers door in each village co-operative, where milk is speedily, efficiently and economically transported twice daily to its dairy plant and chilling centers for processing and marketing. Since the milk procurement system has been extended far and wide in the entire district. Sumul have five chilling center at Bajipura, Uchchal, Navi Pardi, Chaved and Dediapada site at a distance of 50,105,25,110,146 km respectively from Surat city. The chilled is then transferred to the mail plant at Surat railway station road. These 5 chilling center have provided have provided equal opportunities of milk marketing to the distantly inhabited tribal milk producers, which aids the economy of their milk production enterprise or else they would have been obliged to dispose of their milk to the middlemen at very low price. These chilling centers were established with a view to improve the quality of milk and ease pressure at its headquarters. A large plot of area was bought while establishing Navi Pardi Chilling Center keeping in mind to shift the dairy plant from city, if the need arises in future.
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2.8 Turn Over of the Company
(In Crores) Year Turn Over 2004-05 153 2005-06 607 2006-07 700 2007-08 790 2008-09 900 2009-10 1088
From the study of the above diagram, we can see that Sumul has made a continuous progress in their Turnover. The present turnover of the firm is 188 Crores more than the turnover of the previous year
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2.9 Organisation Structure
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3. Human Resource Department
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Human Resource Department
Hierarchy of Organizatiom
Bord of Director
Managing Director Senior Executive Officer Junior Executive Officer Senior Assistant Junior Assistant Technician Workman
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HR OBJECTIVES
To develop business leaders fro tomorrow. To provide job contentment through empowerment, accountability and responsibility. To build and upgrade competencies through virtual learning, opportunities for growth and providing challenge in the job. To foster a climate of creativity, innovation and enthusiasm. To enhance the quality of life of employees and their family. To develop and sustain core values
ROLE OF HR IN SUMUL
Alignment of HR vision with Corporate Vision Shift from support group to strategic in business operations HR as a change agent. Enhance productivity and performance by developing employee competency and potential. Developing professional attitude and approach Developing Global Managers for tomorrow to ensure the role of global players.
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HUMAN RESOURCES ACTIVITIES

In SUMUL HR dept. is very important. The main activities of this department are selection, training, recruitment, and welfare actives. To diffuse the effect of Global Competition, Sumul has adopted the latest concepts of management practices and provided appropriate training with the help of leading institute from time to time for up-gradation & development of its Human Resource Some of the efforts of Sumul to achieve this are:
Employee Knowledge)
Personality
Development
(Attitude,
skill
& 1995
Self Development (Self management Leadership, Meditation)
1995
Total Quality Management, QC, SGA, Kaizen, SQC
1996
Total Productive Maintenance
1999
Meditation Hall
2000
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Not only have that but Sumul also provided other facilities for their employees like:
[[[
1. Washing facilities: The facility of washing clothes is provided to all the workers. 2. Store & drying facility: The full time workers are given personnel lockers to store their things and also facility for drying clothes. 3.Canteen facility: It is providing employee to take Breakfast, Lunch and Dinner at economic price. 4.Rest room: It is also provided to take rest during the Lunch hours. 5.First aid facility: It is given for quick remedy of employees, when any accident occurs during the working hours of the organization. 6.Vehicle parking space: It is provide for employee, worker and visitors separately. 7.Accommodation: Organization is providing township & accommodation facilities to employees. 8.Vehicle loan: It is given to Employee / Executive only. 9.Department stores: KAMDHENU department store is in the staff ready credit society / Staff Quarters to purchase all necessary items at economic rate for employee. 10.Uniforms, Shoes and Raincoats: Uniforms, Shoes and Raincoats are provided to all employees and workers. Metas Adventist College Page 33
EMPLOYEE RECORDS
Generally the company also needs record information pertaining employees that are as follows. Employee name. Employee present residual address with telephone no. Employee Permanent address with telephone no. Employee birth date Employees education qualification Year and date of joined services Department in which currently works. To whom to contact in your absence at your residence & the nearest phone no. Age Male / female
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RECRUITMENT & SELECTION PROCESS

A) Recruitment Process
HR Department receives requisitions. Locating and developing the sources of required number and type of employees. Identifying the prospective employee. Communicating the information. Generally, two types of SOURCES are used in the Organization: 1. Internal Recruitment: It is generally done through promotion and training programs. 2. External Recruitment: Direct Interview: Campus interview. Advertisement.
B) Selection Process:
The Selection Process is concerned with determining whether an applicant meets with all the qualification need to perform a particular job. It means right person a right place. It is very important because of a wrong person is selected it will cost to the company. Need of selection would be arise when vacancies are made in organization. Procedure for selection is differing from organization to organization and from job to job.
For Executives:
Written Test Aptitude test Subject test
Group Discussion Interview Final selection
For Non-Executives:
Written Test Final interview
Final selection
Metas Adventist College Page 35
TRAINING AND DEVELOPMENT SYSTEM
Training is very important aspect for any organisation. Sumul is such organisation, which has arranged no. of training programs for their employees.
In Sumul generally Training is given in 3 Categories, which are as follows: Management Training Office Training Senior Executive Training
The management training is given for 6 months. Officers and senior Executives attend the management development programmed organized by the institute. Training is not uncommon in Sumul. It has an elaborate training program to make employees acquire new skills and knowledge. Both internal and external training is carried out as and when required.
PROMOTIONS AND TRANSFER POLICY
A) PromotionPolicy
The Management Trainees are given 6 month training and later on if they perform well, then they are promoted as provisionary and after one year they are confirmed. Moreover promotion is given on the basis of education obtain by different personnel.
B) TransferPolicy
There is not any policy for transfer, but managing director of the organization generally takes the transfer decisions.
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WAGE & SALARY STRUCTURE

In Sumul generally 3 types of allowances are given which are as follows: Dearness Allowance Additional Dearness Allowance (ADA) House rent Allowance (HRA)
Some fixed amount of house rent allowance is provided for those who live in rental house. Sumul has a fixed increment system for each level of authority in the organization. Only one increment is given a year. However for calculating increment for an employee, the period of time the day of his joining are taken into consideration. Rather month of January and July are considered as base month for the same. For instance, an employee joining the organization in second week of January in 2006 would be having his next increment due in 2007 July not in January. There is also a compulsory increment every 14 and 23 year in which, the employee becomes eligible for immediate next salary scale. Plus two increments without any change in his/her designation. However, during last agreement, upgraded employees have also been given designation as per new salary scale. Recently, Sumul has revised its pay structure to attract more young talents like: Leave Travel Allowance (LTA) Every year allowance is given to employees for traveling any place. This amount is also fixed. Super Annuitant Scheme (SAS) it provided after every 3 years (BASIC+DA+ADA). Washing Allowances (WA) Rs. 20/- is provided every month as washing allowances to worker category. City & Travel Allowance (CTA) Those who live in city are given these allowances more than those are in the village. Shift Allowance (SA) Shift allowance is provided in following way: In Sumul there are 3 shift exist.
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Total market size of Sumul Milk & Competitors Survey Visiting Allowance (VA) This allowance is given to the entire field officers and veterinary officer. Bicycle Allowance (BA) It is give to all permanent employee of worker category. Scooter Allowance (SA) This allowance is given to all the officers and marketing executives. Driving Allowance (DA) It is giving to the drivers of tempos and trucks of SUMUL. Other Components: Bonus (8.33% of BASIC +DA+ADA) Funeral Fund Rs.3000 to the ward and family of the dad. Every month Rs1/- of all higher executives salary is maintained for this fund.
INDUSTRIAL RELATIONS ENVIRONMENT

The industrial environment is very good in the organization. Union and management relation are very cordial. Trade union exists affiliated to Surat District Kamdar Sabha. Settlement is done after every 3 years. Salary + other welfare activities are included in settlement.
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4. PRODUCTION MANAGEMENT DEPARTMENT
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PRODUCTION MANAGEMENT STRUCTURE
Managing Director In charge Strategy Business Unit Center Packing of Shrikhand Sweets Production manager (1) Production manager (2) Cream Processing Tanker Handling Raw Milk Transportation Pasteurized Milk Transportation Manufacturing Skim milk Powder
Milk Processing Cream Processing Packing of Pasteurized Milk Packing of Manufacturing of Flavored Milk Milk Packing of Manufacturing of Ghee Packing of Manufacturing of Dahi
Sumul has produced 15,04,61,760 ltr. Milk during the year out of which 100944886kg i.e.62.52% consulted buffalo milk and 6,65,91,094 kg i.e. 37.50% consulted cow milk. Buffalo milk contains 6.8% fat, 9.00%snf, cow milk 4.3%fat, 8.5%snf that aids the union in marketing good quality milk and milk products. Sumul has paid on an average Rs. 215/- per kg its milk producers / farmers. It has attained self-sufficiency in its milk requirement. Now, Sumul is in a position to surplus milk to mother dairy of Gujarat co-operative milk marketing federation limited, Gandhinagar and other district co-operative milk unions, in Gujarat.
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PRODUCTION PROCESS
Milk cycle:
1. A machine milking the cow 2. Milk producers co-operative Ltd collects the milk from the entire village. 3. The collected milk is tested against the set standard. That insures quality of milk being received from the root level. 4. The received milk is sold locally as well as transported to the dairy for the further processing 5. The milk is tested in dairy lab. No compromises with the quality of milk being received. 6. The qualified milk is received at raw milk receiving Dock at dairy. 7. Cleanliness is always the top priority at any stage of milk cycle cans cleaning process. 8. Milk is pasteurized, clarified and standardized using lasted technological machine & equipments. 9. Milk again tested before being packed. 10. Pouch filling for all the end users. 11. Packed milk stored in well-maintained cold storage. 12. Milk dispatched for the sale in the market. Metas Adventist College Page 41
TIME & MOTION STUDY

During the visit to the production plant we have done micro motion study of a worker whose work was to take the milk pouched from the machine and the keep them on crate, which uses to come serially on the belt conveyors. The position of the person was such that it to very less time. The pouches of 500 ml were filled in Polly bags, sealed and ready pouches were thrown though the pouchfilling machine. 1. First of all we caught the two pouches in one hand and again two pouches with other hand (5 sec) 2. Then he kept all the four pouches together in the crate coming over the Belt conveyor. (4 sec) 3. He again tuned and caught all the four pouches with two hands. (5 sec) 4. And again kept all the four pouches together in the crate coming over the Belt conveyor. (4 sec)
The entire process was completed in 18 sec.
ACTIVITIES OF PRODUCTION DEPARTMENTS

1. Production of planning 2. Material requirement planning 3. Store finished goods and raw material 4. Quality control 5. Packaging 6. Painting of pack product 7. Transport to Marketplace
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MATERIAL HANDLING EQUIPMENTS USED

Sumul dairy, since it is a giant dairy, is fully automatic, and so they used much material equipment. The total no. of material equipment used is as follows: Equipment Milk Tankers: Sumul On contract Tempos (on contract) Crates Cans: 40 Liter. 20 Liter. Crates Trolleys Cans Trolleys Plastic Tube 250 25 50 10 5 13 11 70 40,000 No.
ISO CERTIFICATION
ISO 9001-2 FOR QUALITY CONTROL ISO 14001 FOR ENVIRONMENTAL SAFETY MANAGEMENT ISO 22000 FOR FOOD SAFTY MANAGEMENT (Recently taken) And also has
HACCP- Hazard Analysis Critical Control Point
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5. FINANCE DEPARTMENT
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FINANCE DEPARTMENT
HIERARCHY OF FINANCE DEPARTMENT
OBJECTIVES
The main objective of finance department is Sumul are as under. 1. To monitor & measure debtors 2. To prepare profit & loss account 3. To maintain working capital at minimum level compared to last year. 4. To prepare a balance sheet of 7th may each year. 5. To monitor & measure internal customer satisfaction. 6. To increase short-term investment by 10%.
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SOURCES OF FINANCE
In the Sumul dairy requirement of finance is major into two major areas. 1. In working Capital 2. Investment on expansion These requirements fulfill by taking loan and issuing share. (1) For working Capital: To meet the needs of arising working capital Sumul makes transactions from the following banks. The Surat District Co-operative Bank Ltd, Surat Sarvoday Sahakari Bank Ltd, Surat State Bank of India, Surat Surat Mahila Nagrik Sahakari Bank, Surat Indian Bank, Surat Dena Bank, Surat Co-operation Bank, Surat (2) For Investment on Expansion: National Dairy Board Share capital Debenture
From where rupee comes?
0.01 0.06 0.16 milk sales product sales closing stock miscellenious income 0.77
0.83 0.02 0.02 0.02 0.03 0.03 0.01 milk purchase packing expense salary transportation charge R&D electricity expense distribution
where rupee gone?
FROM WHERE RUPEE COMES?
WHERE RUPEE GONE?
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ACTIVITIES OF FINANCE DEPARTMENT

1. Planning & budgeting of financial resources. 2. When financial resources is not that time taken loans. Issuing shares. 3. Issuing financial resources to different department. Working capital managing 4. Balance sheet & Annual general prepared. Accounting management. 5. Cash management
Annual Business Plan:

The annual business plan is prepared by taking the information regarding sales of every product. The sales officer compile these data taking into consideration growth rate of city population, per capital consumption so as to arrive at overall market size and r=targeted market sale for Sumul product, for the effectiveness of annual business plan the data regarding marketing channel, and product mix are needed.
Data Required for Annual Plan:

1. Product mix plane 2. Marketing channels 3. Manpower requirement 4. Estimated investment 5. Institutional demand 6. Segment wise demand estimation 7. 5 Years procurement analysis 8. 5 Years procurement capacity
COMPUTERIZED SYSTEM OF ACCOUNTS

As finance Department in SUMUL deals with various transaction of finance it always maintains computerized system of accounts. Tally 0.9 software is used in finance department and mercantile is used in Accounting. They maintained this system of accounting because it is also helpful in forecasting the costs, expenses, income, etc moreover, maintaining manual accounts in much time consuming and may lead to inaccurate result. The company has prepared their own made software for billing and other purpose. This software was specially design for the firm according to the requirement of the firm.
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PAYMENT PROCESS
1. Collection of sales bills & sales data 2. Data verification with sales information 3. Feed concern data in computer 4. Feed duration data in computer 5. To pass duration entry to the computer.
To the Milk Producers

Finance department will make payment on the base of certified & approved bills. Receipt of milk collection data. Verify the data with concern department & payment for each dairy co-operative society. Feed all the data in computer with oracle support Reduction of DCSP (dairy co-operative society purchase) & other miscellaneous Account of net amount payable to society is prepared. The payment will send by MT (Money Transfer) by district co-operative bank.
To The Transporters
All the come to the finance department for final payment. The concern department authority certifies every bill. They have to give justification for any expenses. & Then finance department will make payment to the transportation for any expenses. & Then finance department will make payment to the transporters on the bases of certified & approved bills.
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6. MARKETING DEPARTMENT
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MARKETING DEPARTMENT
Hierarchy of Marketing Department
Managing Director
Senior Executive Officer
Senior Executive
Junior Executive
Senior Assistant
Junior Assistant
Workmen
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OBJECTIVES OF DEPARTMENT
Increase the yearly sale of Sumul products by 15 present in compression of last years same month.
The monitor the internal and external customers satisfaction level. To monitor the product and the storage condition including GMP and distributors parlour retailers levels. Training and awareness to customer regarding ISO-9000, ISO-14000, HACCP, GMP and Sumul products about 1000 customer per year. Appoint 5 new agents per month to make milk easily available in market. To take 25 milk awareness programs at various schools in Surat.
CHANNEL OF DISTRIBUTION
Dairy
Agent
Customer
Direct Distribution Channel Sumul is handling 1900 outlets for selling their buttermilk, tea and sugar. Indirect Distribution Channels Sumul is distributing various products: milk, milk products & other than milk products. There are 3 major distributors in Surat city & 19 distributors in rural areas. All dairy co-operative society acts as a distributor for all Sumul products. In Surat city Sumul has created 3400 outlets; Sumul has their own 44 milk parlours, which are in direct contact with the customer.
information technology growing very fast and Sumul always ahead in technology. Customer should be got advantage of these technologies for this reason Sumul Started online shopping facility to Direct Customer as well as Distributor and parlour also net facilities like.
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Direct Customer Distributor and parlour
www.sumuldairy.com www.b2bsumul.com
The distributors and parlours cover whole Surat District including Surat City, Bardoli, Vyara, Kodod, Ukai, Chatthan, Kamrej, Kim, Kosamba, Olpad, Kathor, and Sayan. This whole district is covered by almost 3000 retail outlets; they constantly remain in contact with the customers. In dairy industry Sumul Dairy is wide term. We are the market leaders in almost each dairy product in Surat District.
Product Ghee Paneer Shrikhand & Sweets Milk
Market Share 70% 50% 15% 70%
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Promotion Policy
Promotion activity mainly consists of advertisement. Sumul is a cooperative sector and so the advertisement budget is quite less. However Sumul dairy spend nearly 20 to 25 lakh on the advertisement. The contract of advertisement is with the Venus ads. Here advertising is done through hoardings, banners, wall painting, newspapers, and stickers etc. Sumul as part of promotion activity holds Sumul healthy baby contest on regular intervals. The participation is increasing every time the contest is being held. Here every one is given information about product of Sumul and their views regarding the Sumul product. What change they want? Which other product they want? Are also being asked shop painting is also promotion activity carried on by them. Another Promotion Activity: Changes have been done in packing and slogans of few products. Door to door advertising is done for new product. Facility of taking loan from bank for vehicle and refrigerator are given to agents. A mobile van with facility to test milk show films to customers and address public regarding the hygienic aspects of Sumul milk. Sumul Dairy Cooking Competition organized by Sumul at Hotel Holiday Inn, Surat. Rasoi Show organized by Sumul at Hotel Holiday Inn, Surat. Sumul Healthy Baby Competition. Sumul Painting Competition 2002-02 organized by Sumul & Saint Xaviers School. School students visiting Sumul as a part of their education to know about production activity.
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System of Approaching the Customers

Sumul is doing the following activities to Approach its customers. AdvertisementBy giving the advertising and to a local TV channel by hosting famous anchor advertising through during festival Seasons. HoardingAdvertising through hoardings during Festivals Paneer Show In this show different items made from paneer are sold at a discount rate. Healthy Baby Contest In order to popularize milk and milk products, Sumul organize every year Sumul Healthy Baby Competition. Healthy Baby Contest is unique contest of its kind in Surat. It is conducted each year since 1992 successfully. Education Programs The firm also gives information to the cool children about cow milk by visiting different type of schools in Surat city. House Visits The companies also visit different houses and collect information about different products of the company and also take suggestion from the customer. Other ways Sumul Drawing Competition and Healthy Lady competition arranges meet with agents to guide them how to interact with and serve consumers. A noteworthy step to check the copying by copy makers who have been supplying milk in the pouch more or less resembling artwork and fonts similar to Sumul pack, thus affecting Sumul's image. Sumul has approached legally to combat such unscrupulous activities and achieved successful results. The design/artwork of milk packs have been registered under Trademark Registration Act. Consumers' awareness programs are being organized from time to time, thus educating consumers with regard to value of nutrients they get against what they pay.
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Customer Satisfaction
Sumul has made FEEDBACK system to know the customer satisfaction, for that following action has taken: 1 2 3 4 5 6 7 8 9 After personal visit to customers & explaining the causes of complaint. Replacement is given for storage milk or low weight milk pouches. If agents changes more than MRP than they are fined & even terminated. Agents may also be terminated for his unwanted behavior. Customer satisfaction is most important for the organization. The organization goes for consumer survey to know their preferences & intended Demand. A separate wing is creating in the sales department who takes care of customer complaint. Consumer forums in different areas are formed and regular meeting are organized to address their grievances. Complains are received either by the letter or telephone. Complains are entered in to the customer complaint resister.
10 Seeing the nature of complaint, action is taken. They also take care of solving complains like: Complain Curding of milk Low weight Price changed by the agent more than MRP Agents Behaviour Leakage Complain Process Steps Receive the complain Complains are received either by the letter or telephone. Complaints are entered in to the customer complaint resister After the proper evaluation of complains the necessary steps or action are taken by the marketing department.
Records of Customer Base

Sumul has got more than 1900 customer (approx) and Cods No. is given to each and every customers telephone / fax no., email, person to be contacted. Sumul is also maintaining file for each and every customers and copy of any correspondence exchanged between the customers by Office of Branch Office are available in the said file for reference, i.e. whenever Office is corresponding with the customers, a copy of the same will be forwarded to the respective Branch Office and Vice-versa. Metas Adventist College Page 55
7. Product Mix
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Product Mix of SUMUL Dairy

Products Mix: The set of all products and items that a particular seller offers for sales to buyer.
Whole Milk Pasteurized Milk Homogenize d Toned Milk Skimmed Milk Cow Milk
Butter Milk Ghee White Butter Skimmed Milk Powder
Self Developed Products
Liquid Mlik
Milk Product
Paneer Flovors Milk Sweets Shrikhand Sumul Sugar Sumul Tea
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Pasteurized standardized milk:
Amul Gold Milk
Amul Skakti Milk
Amul Taaza Milk
Sumul Cow Milk
Name of Raw Material or Ingredient:

1. Raw Milk 2. Skim milk Powder 3. Pasteurize white Butter 4. Pasteurize Skim Milk 5. Pasteurize Cream 6. LDPE Film 7. Water
Pure Ghee:
Ghee
Cow Ghee
A Product obtained from milk, cream or butter from various animal species by means of processes, which result in the total removal of moisture and SNF contents, with an developed physical structure. Clarified butter fat with a strong flavor is prepared by heating makkhan.
1. Pasteurize White Butter/White Butter 2. Sour Butter 3. Hd:Ld:Hd 4. 3 layer Polyethylene Bag 5. Tin (Lacquered) 15kg size 6. 1kg/2kg Size With Corrugated Box
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Paneer:
Milk is heating to boiling temperature and limejuice, citric acid, or sour whey. Paneer contain 70% moisture. The whole milk paneer should contain 50%, milk fat on dry matter basic. In skimmed milk paneer the fat on dry matter basic should not exceed 13%.
Name of Raw Material or Ingredient :

1. PasteurizedStandardized Mik 2. Citric Acid 3. Common Salt 4. Moralized Polyester Bag 5. Pasteurized Chilled Water
Flavored Milk :
Milk standardized to a certain fat percentage to which some flavor such as chocolate and fruit syrup is added.
Name of Raw Material or Ingredient :

1. Homogenized Pasteurize Toned Milk 2. Sugar 3. Flavor 4. Color 5. Glass Bottle 6. Crown Cork Metas Adventist College Page 59
Buttermilk:
Chhash
Masala Chhash
By product obtained after the removal of butter or cream from crud by churning or otherwise also known as chhas.

1. Pasteurize Skim Milk 2. Skim Milk Powder 3. Batch Starter 4. Water
White Butter:

1. Pasteurize Cream 2. Corrugated Box 3. HM-HDPE Sheet 4. Pasteurized Chilled Water
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SWEETS
Shrikhand
A milk based sweets male from concentrated dahi with a sweet and sour taste. It is a semi-soft whole milk product prepared from dahi and resembles sweetened quark. Dahi is drained of its whey by hanging it in a cloth from 4 to 6 hours to producing a solid mass called chakka or maska. The resultant maska is mixed with the required sugar, condiments and flavor.

1. Pasteurize Whole Milk 2. Pasteurize Skim Milk 3. Sugar 4. Saffrom (kesar) 5. Nuts (Kaju, Badam, Pista etc) 6. Poly-Propylene Cups 7. Sealing Foil 8. Corrugated Box
Kesar Dry Fruit Shrikhand

1. Chakka 2. Sugar 3. Kesar 4. Almond 5. Cashew nuts 6. Kismis Metas Adventist College Page 61
Elaichi Shrikhand
1. Chakka 2. Sugar 3. Elaichi (Cardamom)
Peda:

1. Pasteurize Milk (Sumulya) 2. Sugar 3. Saffrom (kesar) Powder 4. Cardamom (Elaichi) 5. Nuts (Kaju, Badam, Pista etc) 6. Paper Box 7. Oxygen Scavenger Poly Bag
Elaichi Peda :

1. Milk 2. Cardamom 3. Sugar
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Kesar Peda :

1. Milk 2. Sugar 3. Kesar
MalaiPuri:

1. Milk 2. Sugar 3. cardamom 4. Ghee 5. Pista
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Other Sweets :
Rasgulla:Gulabjabun:
Other Products :
Tea:
Sugar:
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Growth Path of Sumul Products
Products Milk distribution in bottle Establishing member of GCMMF Milk distribution in polybag Butter milk distribution in polybag Whole milk (SUMUL YA) in bulk Whole milk (SUMUL YA) in 500 ml Homogenized toned milk in 500 ml Homogenized toned milk in 200 ml Flavor milk Paneer Sweets Shrikhand Masala Chaas Flavored milk in 200 ml pouch Pasteurized milk in 5 liter pack Masala chass, methi chass Pizza & Ice-cream Rasgulla, Gulab Jamun,Sugar & Cow milk Tea Glabletop Packing for Milk (Plane & Flavoured) Buttermilk in ESL Packing Cold Coco
Year 3-5-1968 9-7-1973 7-12-1978 1-6-1987 1987-88 1991 1994 1995 1993 1994 1994 1995 15-8-1999 15-8-1999 1998 2000 2001 2002 2003 2004 2005 2005
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Price list of Sumul Products:

COMMODITY
Milk Amul Gold Milk Amul Shakti Milk Amul Taaza Milk Sumul Cow Milk Butter Milk Thick Butter Milk Tak Butter Milk Ghee
QUANTITY
500ml pouch 500ml pouch 500ml pouch 500ml pouch 500ml pouch 500ml pouch 200ml 500ml 1 ltr pouch 1 ltr Tin 5 ltr Tin 15 ltr Tin
PRICE ( Rs. )
21 19 15 17 130 10 67 150 290 300 1450 4250 25 48 110 215 1050 8 5 75 80 85
Paneer
100gm 200gm 500gm 1kg 5kg
Flavored Milk
200ml bottle 200ml pouch
Shrikhand
Elaichi Mango Kesar Dryfruit
500gm 500gm 500gm
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8. Theoretical Aspects
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Theoretical Aspects
What is a Market - Definition and Different types of Markets
A set up where two or more parties engage in exchange of goods, services and information is called a
market. Ideally a market is a place where two or more parties are involved in buying and selling. The two parties involved in a transaction are called seller and buyer. The seller sells goods and services to the buyer in exchange of money. There has to be more than one buyer and seller for the market to be competitive.
Monopoly - Monopoly is a condition where there is a single seller and many buyers at the market place. In
such a condition, the seller has a monopoly with no competition from others and has complete control over the products and services. In a monopoly market, the seller decides the price of the product or service and can change it on his own.
Monopsony - A market form where there are many sellers but a single buyer is called monopsony. In such
a set up, since there is a single buyer against many sellers; the buyer can exert his control on the sellers. The buyer in such a form has an upper edge over the sellers.
Market Size
The market size is directly proportional to two factors: Number of sellers and Buyers Total money involved annually
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Market Segmentation - Meaning, Basis and Types of Segmentation

What is Segmentation ?
Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or less similar or related characteristics. Market Segmentation
1. Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference. 2. A market segment is a small unit within a large market comprising of like minded individuals. 3. One market segment is totally distinct from the other segment. 4. A market segment comprises of individuals who think on the same lines and have similar interests. 5. The individuals from the same segment respond in a similar way to the fluctuations in the market.
Basis of Market Segmentation

6. Gender The marketers divide the market into smaller segments based on gender. Both men and women have different interests and preferences, and thus the need for segmentation. Organizations need to have different marketing strategies for men which would obviously not work in case of females. A woman would not purchase a product meant for males and vice a versa. The segmentation of the market as per the gender is important in many industries like cosmetics, footwear, jewellery and apparel industries. 7. Age Group Division on the basis of age group of the target audience is also one of the ways of market segmentation. The products and marketing strategies for teenagers would obviously be different than kids. Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags Age group (20 years and above) - Cosmetics, Anti-Ageing Products, Magazines, apparels and so on
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8. Income Marketers divide the consumers into small segments as per their income. Individuals are classified into segments according to their monthly earnings. The three categories are: High income Group Mid Income Group Low Income Group Stores catering to the higher income group would have different range of products and strategies as compared to stores which target the lower income group. Pantaloon, Carrefour, Shoppers stop target the high income group as compared to Vishal Retail, Reliance Retail or Big bazaar who cater to the individuals belonging to the lower income segment. 9. Marital Status Market segmentation can also be as per the marital status of the individuals. Travel agencies would not have similar holiday packages for bachelors and married couples. 10.
Occupation Office goers would have different needs as compared to school / college students. A
beach house shirt or a funky T Shirt would have no takers in a Zodiac Store as it caters specifically to the professionals.
Types of Market Segmentation

1. Psychographic segmentation The basis of such segmentation is the lifestyle of the individuals. The individuals attitude, interest, value help the marketers to classify them into small groups. 2. Behaviouralistic Segmentation The loyalties of the customers towards a particular brand help the marketers to classify them into smaller groups, each group comprising of individuals loyal towards a particular brand. 3. Geographic Segmentation Geographic segmentation refers to the classification of market into various geographical areas. A marketer cant have similar strategies for individuals living at different places. Nestle promotes Nescafe all through the year in cold states of the country as compared to places which have well defined summer and winter season. McDonalds in India does not sell beef products as it is strictly against the religious beliefs of the countrymen, whereas McDonalds in US freely sells and promotes beef products.
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9. Research Methodology
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Research Methodology
9.1 Marketing Research
Marketing research is the function which links the customer, consumer and public to the marketer through information used to identify and define marketing opportunities and problems; generate, retire and evaluate marketing action; and improve understanding of market as a process. The methodology followed in the research is explained here in the form of distinguished steps:
Current Situation & Secondary Data
Problem Identify
Research Design
Simplicity & collection
Analysis of Data
Preparation of Project Research Design Research Approac Research Instrument Information Need Area of the survey Sample Size Sampling unit Interview method : : : : : : : : Exploratory Survey Questionnaire Primary Data Surat City 100 Respondents(Consumer) 8 Respondents(Distributors) People Focus Group interview
Objective of Study:
The objective is To Check out the Total Market Size of MILK in Surat city &Competitor Surey.For that I have done FOCUS INDIVIDUAL method on consumers usage of Milk & their Spending on Milk. To study the market size of milk in surat. Survey of sumul milk competitor Study consumer's usage of milk & their spending on milk
For that I have done two basic surveys. One is of consumer on consumers usage of Milk & their Spending on Milk and other one is of competitors on their market coverage and distribution system.
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9.2 Research Design

Research Design constitutes the blueprint for the collection, measurement, and analysis of data. It also express both structure of research problem- the framework, organisation, or configuration of the relationships among variables of the study- and plan of investigation used to obtain empirical evidence on those relationships. Research Design is classified in to main 8 types, I have used Exploratory Study. The purpose of choosing this method is to develop the hypotheses or question for further research. The topic, which I had taken, is need to revised study; it is done only through EXPLORATORY STUDY.
Exploratory Stage
The first stage in research design is the exploration of current situation. In this stage clarification of the specific problem is defined. Exploratory stage gives the answer of question that how I came to know about the problem statement.
Why exploration?
One of the reasons is that the area of my investigation was new this is my first study of investigation in the dairy sector. Here the company did not have any clarity about the problem statement. What should be the researched what should be not? Also due to time constrains, it is save time because it help me to clarify the situation more precisely.
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Research Process
Competitors analysis
Exploration
Consumer Survey Process
Distributors Interview Process
Consumer Survey Process
Problem Identify
Current Situation & Secondar y Data
Preparation of Questionnaire
Research Design
Data Collection
Analysis of Data
Preparation of Project
Findings from the study
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Distributors Interview Process
Preparation of questionnaire
Contacting with dealers of different brands
Getting information about distributors from dealers
Taking of interview of distributors
Note down of points from interviews
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9.3 Data Collection tools

Sources of data collection
Primary dataPrimary data are collected through direct contact with people in different areas of Surat city
through FOCUS GROUP method.
Secondary data
Products..
Secondary data arestudied through past data of market size of milk & Milk
Research instrument
01. Questionnaire was used for the purpose of the data collection as the instrument. Questionnaire consisted of both close ended and open ended questions. 02. Focus Group Interview (Snow Ball Sample)
9.4 Sampling design

Here the non - probability sampling method has been used.
Defining the target population:

Sampling element The people who use Sumul or other brand. Samplings frameThe data base provided by the SUMUL DAIRY, Surat city. Sampling size The size of the sample is 100 respondents. Duration of data collectionTime duration from 22ndApril 13 to 28th April 13
Statistical test used:

Here in this project statistical test like 2 test, cross tabulation are used.
Cross tabs:
The cross tabs procedure form two-way and multi way tabs and provides variety of test and measures of association for two-way tables. The structure of the table and weather categories is ordered determine what test or measure to use. Cross tabs statistics and measure of association are computed for two-way table only. If you specify a row, a column and a layer factor{control variable}, the cross tabs procedure from one panel associated statistics and measure fro each value of the layer factor or a combination of values for two or more control variables. For example the liking of Present Milk is the layer factor for a table of Various Component against liking of Sumul Milk, the result for two way tables for the various components of Present Liking of Milk & Liking of Sumul Milk. Above mention statistical test will use according to the type of data collected in the survey. Metas Adventist College Page 76
Defining the target population:

Sampling element The people who use Milk and milk products whether they use Sumul or other brand of Milk and milk products. And the distributors of competing brands. Samplings frame The database provided by the SUMUL DAIRY. Basically the secondary data and some information regarding competitors in Surat city. Sampling size The size of the sample is 100 respondents in consumer survey and 8 respondents in distributors survey. I.e. I have surveyed 8 distributors of different competing brands.
Duration of data collection

Time duration of data collection is 7 days i.e. from 22nd April 13 to 28th April 13.
9.5 Limitation of research

As every coin have two sides one good and other bad. My study has some limitation. Some of the major limitations of my study are mentioned below. The survey work was conducted in Surat only so, it cannot cover the preference of other areas. The sample size taken for the survey work was 100 because of the limited time period there is There is a chance of mistake in the answer because of the limited knowledge of the respondent. Probability sampling was not used due to time and cost constraints and therefore the results cannot be There is also limitation of time in preparing specialized report along with General report in limited
Chances of error in Data Analysis.
generalized to the population. time; I am unable to collect all the information related to general report
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10. DATA ANALYSIS
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Analysis of Data & Interpretation:

Data Analysis is done with help of computer by using SPSS Software and interpretation in form of Graphs, Tables and Charts should be done.
We have divided Area of Surat into 4 clusters; I have covered various areas which are as follows:
Cluster 1 Varachha road, A.K.Road, Fulpada Cluster 2 Katargam, Alkapuri, Patel Vadi, G.I.D.C. Nanpura Cluster 3 New Rander Road, Adajan, PalGam, Rander, Citylight Cluster 4 Udhna, Bharatnagar, Pandesara, G.I.D.C., Bhathena, Dindoli
Total Market Size of Milk in Surat City. Formulae

Average Family Size = Total number of persons of sample size Sample Size Average Consumption = Total consumption of sample size Sample Size Per Capita Consumption = Average consumption
Average family size Per Capita Budget = (Per capita consumption) x(Average price of 1 lit Milk). Market size of Milk of Surat city = (Population of Surat city) x (Per capita Consumption).
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Average Family Size:

Family Size 2 3 4 5 6 7 8 9 Total
Frequencies 6 9 30 19 20 7 5 4 100
Total 12 27 120 95 120 49 40 36 499
Average Family Size:

= Total no. of person in a family Sample Size = 499 100 = 4.99 persons in a family.
= 5 persons in a family (Approx.)
Page 80
Average Consumption: - (for all clusters)

Consumption (lit) 0 0.500 0.500 - 1.00 1.00 - 1.50 1.50 - 2.00 2.00 - 2.50 2.50 - 3.0 >3.00 Total Mid point (lit) 0.25 0.75 1.25 1.75 2.25 2.75 3.25 Frequency 6 10 32 19 21 7 5 100 (Freq.) x (Mid. point.) 1.5 7.5 40 33.25 47.25 19.25 16.25 165 Percentage (%) 0.91 4.55 24.24 20.15 28.64 11.67 9.85 100
Avg. Consumption: = Total Consumption of family Size of sample = 165 100
=1.65 litre. (Approx.)
Per Capita Consumption: = Avg. Consumption Avg. family size =1.65 5 =0.33 liter.
= 0.33 liter. Milk (Approx) / person / per day
Page 81
Per capita Budget: = [Per capita consumption] x [Avg. price of Milk (1 liter.)] = [0.33] x [22]
= 7.26 Rs. per day.
Market Size of Milk in Surat City: Total consumption of Surat city (100) = 1322 Total consumption of Sumul dairy (100) = 892.5 = 892.5 *100 1322
= 67.51% Sumul milk consumption.

So, total population of Sumul milk user: = 42, 74,429 * 67.51%
= 28, 85,724 (People using Sumul milk)

= population (of Sumul) X per capita consumption = (28,85,724) X (0.33) = 8,02,231 litre (per day) *22
= 1,76,49,091 Rs. (per day)
Page 82
ANALYSIS
A. DEMOGRAPHIC PROFILE
1) Gender: Respondent Female Male Total
the no. of female respondents in the research
No. of Respondent 91 9 100
Percentage 91 9 100
Purpose: - The survey of female is more important in the case of milk. So the purpose is to know
Gender ratio
100 80 60 40 20 0 Female Male Female Male
Interpretation: Percentage Male Female 9 91 0.9 0.91
Among the respondents 0.91%, i.e 91 is females. This ratio act as accuracy of the responses available
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2) Age Group you belong to:

Purpose: - The purpose of this question is to know the age group of the respondents.
Age Below - 20 21 - 40 41 - 50 51 and above Frequency 16 58 18 8
Age Group
60 50 40 30 20 10 0 Below - 20 21 - 40 41 - 50 51 - Above Below - 20 21 - 40 41 - 50 51 - Above

Interpretation: Herefrom the graph it is clearly observed that the age of the most respondents are more than 21 years and less than 40 years. So here we got the authentic age group as respondents.

3) How many members does your family consist of?

Purpose: - the purpose of this question is to know the average family size in the area of Surat city.

Family Size Up to 3 46 More than - 7 No. of members 30 58 12
Family Size
60 50 40 30 20 10 0 Up to 3 4 To 6 More Than - 7 Up to 3 4 To 6 More Than - 7

Interpretation: According to the graph and tabulation data, we can know that average family size in the Surat city should be in between 46. And secondary suggest average family size in Surat city is 4.68persons/family.

4) Income Group you belong to:

Purpose: - The purpose of this question is to know various household income of the people in the Surat city.

Income Below - 10,000 10,000 - 30,000 30,000 - 50,000 50,000 - Above Total
No. of respondents 18 51 24 7 100
Household Income
60 50 40 30 20 10 0 Below - 10,000 10,000 - 30,000 30,000 - 50,000 50,000 - Above Below - 10,000 10,000 - 30,000 30,000 - 50,000 50,000 - Above
Interpretation: Here, from the graph and tabulation data it is clearly observed that the average monthly household income in the Surat area is in between 10,000-30,000. So, we can say that people are capable of spending sufficient money behind milk.
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B. MILK PURCHASING HABITS

5) How often do you purchase milk.
Responses Regularly Occasionally No 100% (100) 0% (0) 0% (0)
How Often?
100 90 80 70 60 50 40 30 20 10 0 Regularly Occasionally No Series 1
Interpretation: Here, from the graph and tabulation data it is clear that 100% people in the Surat city purchase milk regularly and our secondary data also suggest the same.
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6) In what form do you purchase milk?

Purpose: - The purpose of this question is to know the market of pack milk as well as loose milk. Responses Packed Unpacked ( Loose ) Both 18 72 10
In What Form?
80 70 60 50 40 30 20 10 0 Packed Unpacked ( Loose ) Both Packed Unpacked ( Loose ) Both
Interpretation: From the graph it is known that the market of pack milk in the Surat city is high. People mostly prefer to purchase pack pasteurized milk. So, we can say market potential is also up to the mark.

7) Brand name you aware of ? Respondent Amul Sumul Rajhans Gokulam Vimal Other No. of Respondent 100 100 10 25 5 10
Awareness Of Various Brand Of Milk

100 90 80 70 60 50 40 30 20 10 0 Amul Sumul Rahjans Gokulam Vimal Others Amul Sumul Rahjans Gokulam Vimal Others
Interpretation: The above survey shows the awareness of various Brand of milk. The maximum
awareness is of Amul, Sumul which is 100%.
Page 89
8) Through what source do you purchase milk? Respondent Milk Booths Full Time Counters (FTC) Provision Stores Home Delivery Others No. of Respondent 60 18 12 10 0
Source Milk Purchase

60 50 40 30 20 10 0 Milk Booths Full Time Provision Home Counters Stores Delivery Others Milk Booths Full Time Counters Provision Stores Home Delivery Others
Interpretation:
The above survey shows the sources of purchasing milk. The main source of purchasing milk is Milk Booths which is 60%, 18% is of Full time counters. 12% is of provision stores & the least is 10% which is of home delivery, and the last is others.
Page 90
9) What type of milk do you usually purchase? Respondent Double toned Milk Cow Milk Tetra pack Full Cream/ Whole Milk / Buffalo Milk others 33 0 No. of Respondent 11 46 10
Type of Milk Purchase

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Double Toned Milk Cow Milk Tetra Pack Full Cream/Whole Milk/ Buffalo Milk Others
Interpretation: The above survey shows the types of consumption of milk. 46% of respondents
prefer Cow Milk . There are 33% respondents who prefer Full Cream, Whole Milk, and Buffalo Milk. 11% respondents prefer Double toned Milk. Thus we can interpret that Cow Milk is mostly preferred by the respondents. Metas Adventist College Page 91
10)

How would you rate the milk that you purchase with respect to the
following attributes?
Respondent Availability Timeliness Quality Packaging Price Source of supply
1 0 2 0 0 2 6
2 4 4 0 2 10 10

3 6 24 12 18 56 11
4 30 50 56 58 20 40
5 60 20 32 22 12 11
% 1.54 2.18 1.80 2.00 2.70 2.38
Rate Based On Attributes

3 2.5 2 1.5 1 0.5 0 Availability Timeliness Quality Packaging Price Source of supply
Interpretation: The above survey shows the weight age of various attributes considered. The
maximum weight age is given to Price which is 2.70, next is 2.38 which is Source of Supply, 2.18 weight age is given to Timeliness, Packaging is given 2 weight age & the least is 1.54 weight age of Availability. Metas Adventist College Page 92
C. CONSUMER PERCEPTION OF MILK, PREFERENCE AND LEVEL OF SATISFACTION

11) Reason for Usage Of Sumul Brand ?
Respondent Availability on all days Fresh Thick Smell Good for making Milk products Good Packaging Pure Always been using it Comparatively lower price Low Fat

1 10 30 6 6 2 0 11 1 7 0
2 22 50 10 0 12 0 16 1 6 3
3 34 5 12 6 0 6 33 0 5 0
4 21 10 12 6 17 11 10 1 13 2
5 13 5 18 1 12 6 30 6 2 6 2.96 3.57 3.06 3.9 2.42 2.00 2.86 2.89 1.21 2.00
Reason for using of Sumul brand

4 3 2 1 0 Availablity on all days Fresh Thick Availablity Good for Always been Comparativ Low fat Fresh Thick Smell Pure Smell
Interpretation: The above survey shows the most 6 reasons to use current brand. The maximum
reason to use is 3.57 which are Fresh. 3.21 weight ages is given to Lower price. The least is given to 1.21 Comparatively low price. Metas Adventist College Page 93
12)
What is the total average consumption of milk in your household
(litres/day)? Respondent up to 1lt 1lt to 3lt 3lt to 5lt 5lt and above Total

No. of Respondent 11 70 10 9 100
Average consumption(litres/day)
70 60 50 40 30 20 10 0 up to 1lt 1lt to 3lt 3lt to 5lt 5lt and above up to 1lt 1lt to 3lt 3lt to 5lt 5lt and above
Interpretation: The above survey shows the per day consumption of the respondents. The
maximum consumption of respondents is 1 lt to 2 lt & the minimum is of 3 litre & above.
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13)How is the milk used?

Uses Making Tea / Coffee Making Dahi / Curd Making Channa / Paneer Making Ghee / Butter Making Lassi / Butter Milk Making Sweets Drinking Shakes Total Proportion 25 15 5 5 10 3 30 2 100 %
How is Milk Used?

30 25 20 15 10 5 0 tea/coffee dahi/curd channa/paneer ghee/butter lassi/butter making sweets drinking shakes
Exploratory Study (Interview Method)

Rajhans
The distribution ship of Rajhans milk is mainly with Rajesh bhai who is strongly attached to the company. Rajhans brand of milk is a threat for a giant Sumul. Rajesh bhai has dealer ship since last 9 years in Surat city. And the brand has strong boards background. Because the owner of the dairy is Balasaheb Thorat who is a well known politician. There are 30 dealers under Rajesh bhais distribution ship. The market of the Rajhans is vast i.e. of 42,000 litres a day in the Surat city and Rajesh bhai covers 20,000 litres milk market in the area of his distribution ship. There are 15000 litres per day market for butter milk also. Before 12 PM order goes to main production plant in Maharashtra. Rajesh dont take any deposits from the dealers but they require some references for taking dealership. They take the payment very next day. They also sell the cow milk which contains 3.90 % fat and 8.65 % SNF. Rajhanss cow milk is well known in the area of Surat city. The rate for 500 ml of cow milk is 11.50 Rs and it is low comparatively. The Rajhans brand not giving the facility for replacement and company also not repays the distributors. The company gives the basic target to the distributors The sale was 20000 litres per day before recession but now its goes down to 16000 litres a day. They reduced the price of the milk 50 paise per every 500 ml milk pouch still sales decline. Company doesnt provide any refrigerator system for storage of milk. Sometimes company offer discount. So, that we can say unlike other companies Rajhans is doing at least something for their sales promotion. Sometimes they also offer 1 litre milk free on every 100 litres milk. Sometimes demand fluctuates.
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Gokulam
The brand Gokulam is old but the distribution ship with Bharat bhai is since last 8 months. Before it some other person was having the distribution ship of brand Gokulam. The market coverage of Simaran dairy is good and the capability of Bharatbhai is also good. These are the reasons why Gokulams distribution ship is with Bharat bhai. The companys production plant is in Sachin near Surat. Gokulam doesnt have any website and also not publishing any catalog. There are 18 dealers under Bharatbhais distribution ship. The milk of Gokulam covers the whole city.
Price...
Tonned 18
the company. Company, basically, not giving any target to achieve. The market of Gokulam in Varachha area is 6,000 litres per day. And the total market of the company in Surat is 40,000 litres a day. The distributor is not taking any deposits from the dealers but the payment cycle is same i.e. next day payment. Milk comes two times a day from the company. It comes in afternoon at 1 PM and one time 1 AM. Company is not providing any equipment for storage of milk. The company not making any marketing efforts to promote brand Gokulam. According to Bharatbahi there are some seasons in which the consumption fluctuates. It may go up or down also.
Standard 19
Full cream 21
The company is not giving any replacement facility. The milk is coming following the order only from
Comments for Sumul: The price of Sumul is comparatively high. Consumers are satisfied with Sumul. There are very high effect of recession reflects in the brand Gokulam. Before recession the market was 8,000 litres per day and now its reduced to 6,000 per day in Varachha only. Bharat bhai believes that increase in price reduces the demand of the milk. According to Bharat bhai service and quality are main factors in the milk business. During flood also Gokulam provides milk to the people.
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Vimal
Chiman bhai has the distribution ship for long time. The brand name Vimal is of Vimal group. Vimal group also produces Vimal oil which is well known. Vimal is producing all the three types of milk i.e. Gold, Shakti, and Taza. The milk of Vimal brand covers Surat city only and per day market is 5000 litres pack milk. Dairy is basically located in Mahesana district. Replacement Ststem: Sub dealer sends milk back if any fault is there. Distributors send it back to the company.
And company compensate for that.

The company takes deposits from distributors nearly 2 to 2.5 lacs. Milk comes at the place in might 2 AM According to the Chiman bhai demand of the milk fluctuates season by season and during festivals. In spite of milk, Vimal produces ghee, buttermilk etc. According to Chiman bhai there is lots of competition in Maharashtra daitries. He also tells that Rajhans deserves best. Choryasi dairy also produces good quality of milk. Loose milk of Choryasi dairy is famous.
Comments for Sumul:The quality of Sumul is good and its a well known brand so, Respondent from the consumers is very good. The management of the Sumul is also excellent. Sumul provides two times service i.e. in morning and in afternoon. The effect of recession is reflecting on Vimal milk. According to Chiman bhai for continue with smooth milk business customer satisfaction in sense of quality and service is very necessary. Vimal is currently not using any promotional activities for effective marketing.
Page 98
Sumdhur
The brand Madhuram is own by Sailesh bhai who currently handling the franchisee shop of Monginis in Surat. The production plant is situated near Surat itself. The per day market of Sumdhur brand is nearly 5000 litre. According to Sailesh bhai recession in diamond business makes decrement in sales of milk of his brand. Milk comes after 1 AM at the place ant than they send to the dealers for sales and the order of milk goes to the plant everyday between 12 PM to 1 PM. They generally dont take deposits from the dealers but they only take next day payment. They are having all the three types of milk according to Gujarat government rules. They currently not using any promotional activities for the enhancement of sales and not giving any discounts to the dealers but they will do all such things in future. Demand fluctuates according to the season and during festivals also. Milk comes one time only that is early in the morning. Due to recession 2000-3000 litres milk selling goes down.
Comments for Sumul:Sumul is big union and the management style of Sumul is also good. Sumul maintains quality consistently. People have trust on Sumul. Brand name matters a lot in case of Sumul.
Page 99
11. FINDING
Page 100
FINDINGS:1) sumul is having major share in the market with 77.90%. 2) Majority 50% of young people we find in household. 3) In Surat city around 68% household have member between 4 to 6 people. 4) Milk is very required product in market and people always use milk in their own house hold so that all most people purchase milk regularly in the market. 5) In surat, milk is purchase by the self and after that they prefer home delivery for the milk in house. 6) People who purchase the pack milk it more than who purchase the loose milk. It all more than double. There is bigger segment of that people also who purchase the both milk, loose as well as pack. 7) Milk is consume for tea, coffee etc. its consume as time of snack. There are 70% of people who buy milk at morning before 9am. As second preference they bye milk between 4pm to 7pm. 8) In market, Amul, Sumul and gokulam have very good awareness in the market than come rajhans and vimal milk as aware in people mind in market. 9) At the rate of 23, 24 and 25 per liter consumer purchase the milk most. 10) Consumer purchase milk form mainly two place, milk booth and local loose milk booth. 11) Standard milk is most purchase in market and second place come whole milk or buffalo milk. 12) According to survey, consumer demanding the availability and quality of milk most.
13) Consumer purchase milk for any brand because of freshness, good for children, comparative low price and timely delivery while the reason to not purchase other brand because of not use before, not good for children, not proper availability and comparative high price in market.
14) Most of the household consume the 1ltr to 2ltr milk per day consumer in the market. 15) Each household spending 50% for the milk. 16) All the other brands in the packed milk segment is having only 20% share. 17) Quality of sumul was well appreciated. 18) Price of sumul packed is highest in the market. 19) Distributor was having positive Respondent towards the sumul brand 20) Overall Satisfaction Level is 91.43%
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12. RECOMMENDATIONS
Page 102
RECOMMENDATIONS:

1. In order to survive in the competition in the market, Sumul need to be more co-operative and provide more margins to the distributor, retailer and small shop owners. 2. Price of the Sumul is high in the market, so they should charge according to competitor. 3. Sometimes schemes of discounts and allowance should be provided to the distributors in order to encourage them. 4. Sumul have to concentrate that area where the other competitor product selling more and adopt such way to cover particular market. 5. Sumul is very big organisation and have very good financial capacity to expand the market. on the bases of this advantage Sumul have to advertise its product in that area where low turn over in the market. 6. Sumul have to change in their strategy according to the recession period of the market and Sumul have to may reduce in the price or milk or lunch the low cost milk for the lower class customer. 7. Other competitor also in plan to develop their business so that Sumul facing problem with other product apart forms the milk. 8. Sumul can deliver its milk in the various form of item like sweet, curd, lassi, cold coco etc. by the marketing of all this product Sumul can grow more consumption of milk in the market. 9. Sumul adopt the very good strategy to distribute the milk in the market. in further Sumul have to adopt same strategy to direct connection with all dealer and provide milk is more beneficial and grow the market also. 10. Sumul can start to cover the un tap market in surat. Sumul can cover that market which is in competitor hand and other market which is totally un tap. 11. Sumul have to adopt the social service in the market which will increase the goodwill of company in market and milk business also work on trust so that consumer may increase trust on company by the its social activities. 12. Sumul can contact the big mall which is running in city and which will soon start in city for the supply of milk and its product. This way Sumul can increase market share and cover the other customer of market.
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13. CONCLUSION
Page 104
Conclusion
I would like to conclude that SURAT DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.(SURAT) is having a good reputation. During my visits I observed that the company enjoys good production time. Having a detailed study of marketing department, today company is one of the most and leading company in the market.SUMUL is considered as the best brand in the market with regards to milk and milk products. With the help of deep network of distribution and wide infrastructure company maintains constant touch with the distributors and customers. They give more and more emphasis on marketing management. The company is having high efficiency and smooth going personnel department and along with this company has good financial position. SUMUL maintains good relationship with the bank, debtors, creditors, officers and others. During my industrial training at SUMUL, I found that there is co-operative managerial staff & workers & also good & efficient management in each & every department & workers are fully satisfied with their management because the main purpose of SUMUL is to achieve their goals involving each & every employee. Since its establishment, it has been profit-making organization.
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14. BIBLIOGRAPHY
Page 106
Bibliography
Websites:
1. www.sumuldairy.com 2. www.suratmunicipal.gov.in 3. www.indiadairy.com 4. www.google.com 5. www.nddb.org 6. www.indiandairymart.com
Other resources:
61th annual report of Sumul Dairy 2011-12
Page 107
15. Annexure
Page 108

7) Brand name you aware of ?
Annexure
QUESTIONNAIRE ( Consumer )
A. DEMOGRAPHIC PROFILE
1) Gender: 2) Age Group you belong to: [ ] Below 20 3) How many members does your family consist of? [ ] 20 30 [ ] 40 50 [ ] 50 Above
[ [ [
] Amul ] Rahjans ] Vimal
[ [ [
] Sumul ] Gokulam ] Other
8) Through what source do you purchase milk?
[ [ [
] Milk Booths [ ] Others
] Full Time Counters ] Home Delivery
] Provision Stores [
[ ] Male [ ] Female
9) What type of milk do you usually purchase?
[ [ [
] Double Toned Milk [ ] Cow Milk [ ] Others
] Tetra Pack
] Buffalo Milk
10) How would you rate the milk that you purchase with respect to the following attributes?(PLEASE RATE)
[ [
] up to 3 ] >7
]46
Very Good 5 Bad 2
Good 4
Okay 3
Very Bad 1 Rating [ [ [ [ [ [ ] ] ] ] ] ]
Attributes
4) Income Group you belong to: [ ] Below 10,000 [ ] 10,000 30,000 [ ] 30,000 50,000 [ ] 50,000 Above
Availability Timeliness Quality Packaging Price Source of supply
B. MILK PURCHASING HABITS

5) How often do you purchase milk.
[ [
] Regularly ] No
[ ] Occasionally
6) In what form do you purchase milk?
[ [
] Packed ] Both
] Unpacked (Loose)
Page 109
C. CONSUMER PERCEPTION OF MILK, PREFERENCE AND LEVEL OF SATISFACTION
12) What is the total average consumption of milk in your household (litres/day)?
11) Reason for Usage Of Sumul Brand ?
Consumption: Up to 1ltr 1ltr to 3ltr [ [ ] ]
[ [ [ [ [
] Availability on all days [ ] Fresh ] Thick [ ] Smell [
] Lower Price [ ] Pure
] Always Being Using it ] Good for Making Milk Products [ ] Low Fat 3ltr to 5ltr 5ltr and above [ [ ] ]
] Good Packaging
13) How is the milk used?
Uses Making Tea / Coffee Making Dahi / Curd Making Channa / Paneer Making Ghee / Butter Making Lassi / Butter Milk Making Sweets Drinking Shakes [ [ [ ] ] ] [ [ [ [ [ ] ] ] ] ]
Page 110
Page 111

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To find out total market size of Sumul Milk and Competitors Survey PROJECT BBA-307 SUBMITTED TO

METAS ADVENTIST COLLEGE

THE NORTH EASTERN HILL UNIVERSITY (NEHU)

Total market size of Sumul Milk & Competitors Survey

Place: SURAT Date: (Mr. Sagar.B.Patel) ( S.Y BBA )

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

Total market size of Sumul Milk & Competitors Survey

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

1.1 WHAT IS DAIRY?

1.2 Indian dairy Industry - a profile

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

1.3 Background Information

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

Production of milk in India

World's major milk producers(Million

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

Industry Structure, Production and Consumption

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

Indian Milk Production by State (in thousand tonnes)

Consumption growth and industry response

Total market size of Sumul Milk & Competitors Survey

1.4 HISTORY OF INDIAN DAIRY

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

1.5 NDDB (National Dairy Development Board)

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

1.6 SWOT ANALYSIS

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

2.1 INTRODUCTION TO SUMUL

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

2.2 HISTORY OF SUMUL

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

2.3 GLIMPSE OF SUMUL

Total market size of Sumul Milk & Competitors Survey

2.4 Milestone of Sumul Dairy

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

2.5 FUTURE OBJECTIVES OF SUMUL

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey

2.6 Sumuls Vision Statement

Metas Adventist College

Total market size of Sumul Milk & Competitors Survey