Sunteți pe pagina 1din 25

MARKET RESEARCH REPORT FOR

DAIRY DEVELOPMENT CORPORATION (COW MILK) IN KATHMANDU VALLEY

Prepared by Krishna Poudel & Shiva Ram Neupane

ACKNOWLWDGEMENT
On the accomplishment of this market research report we would like to express our deepest appreciation to all those who provided us the possibility to complete this report. We would like to acknowledge Human Resource Department of Dairy Development Corporation, for recruiting us and giving us an opportunity to work as an intern in the organization. In this regard, we would like to express our sincere thanks to all the staff members of DDC for their co-operation and guidance. We would also like to express a warm acknowledgement towards Sales Department for continuous support throughout the research period. We would also like to thank Mr. Rewati Prakash Subedi (Administrative Assistant) & Mr. Nawaraj Khadka (Administrative Officer) for their continuous supervision and support and for providing guideline and feedback to make our research most fruitful and productive. Special thanks go to our senior brothers Mr. Sudhir Bhusal and Mr. Raju Gnawali for their continuous support and encouragement throughout the research period.

Finally, regardless of all sources, we wish to express our gratitude and thanks towards all those who have contributed and supported us in preparing this report.

Krishna Poudel

&
Shiva Ram Neupane

CASE STUDY BACKGROUND INFORMATION:


The Dairy Development Corporation (DDC) has started selling pure cow milk from March 2. The state-owned dairy said the product has been made available in 500 ml poly pack, priced at Rs 30 per pack. The milk contains 3.5 percent fat and 7.8 percent SNF. Dairy Development Corporation established under corporation Act 2021 BS. DDC-a fully state owned corporation, initiated for the economic advancement of the poor farming communities, has flourished into a nationwide movement with an annual collection over 60 million liters of milk from more than 75 thousand milk producers through 888 milk cooperatives spread out in 33 district. With the sate-ofart infrastructure comprising of fully modern dairy plants, 11 cheeses manufacturing units, 45 milk chilling plants and highly qualified dairy specialists, DDC is a precious asset in the economic development of our nation. DDC is the pioneer in dairy development in Nepal a fully government state owned corporation DDC was initiated for the economic advancement of the poor small milk producing farming communities. It is still one of the major players in the milk market and handles about half of the total milk marketed in the formal sector (about 13 percent of the total milk produced in the country is believed to be marketed through formal marketing channel). Dairy development efforts started in early fifties with assistance from FAO. Initiatives were focused in Himalayan region with establishment of yak cheese factories. Besides FAO, bilateral assistance from the governments of Switzerland, New Zealand and Denmark has made remarkable contribution The objectives of the corporation were laid as under: to provide a guaranteed market for milk to the rural farmers with fair price; to supply pasteurized milk and milk products to urban consumers; to develop organized milk collection system to meet increasing demand for pasteurized milk and milk products; to develop organized marketing system for milk and milk products in urban areas; and to organize, promote and expand milk collection, production to bring self-sufficiency in milk and milk products in order to meet the local demand and substitute imports of dairy products.
1|Page

RESEARCH PROBLEM:
The research was conducted to find out the reason behind the stagnant sales of cow milk from DDC. Though being the leader in the market with respect to milk and milk products supply DDC hasnt been able to cement its places in the heart and mind of the customers. In-order to provide the customers with new taste and experiences DDC has introduced the cow milk in the market, claiming that it is the purest and healthiest milk sold by DDC. After DDC began its sales of cow milk in the market people have mixed kind of opinions towards the product. People havent been able to accept the cow milk fully because of various reasons. The sales of other milk is satisfactory but the newly launch cow milk hasnt been performing as per the expectations of the company. The problem of our research is:
STAGNANCY IN SALES OF COW MILK OFFERED BY DDC

2|Page

RESEARCH OBJECTIVES:
To determine the people familiarity with DDC and cow milk from DDC. To measure the impact of promotional effort done by the organization. To understand the market attractiveness of cow milk. To identify the reason behind the stagnancy in sales of cow milk in the market. To identify and measure the customers trust in quality as claimed by DDC.

3|Page

LIMITATIONS OF THE RESEARCH:


Each study is conducted under some constraints and limitations. Accurate, up-todate information obtained by marketing research can be of enormous value to an organization in gaining and/or maintaining its competitive edge. However, there are a number of reasons why, in reality, these potential benefits may not be realized. Likewise, this study is also limited by some common constraints. The specific limitations of the study are as follows: This research is affected by financial resource of the researcher. Since field research is to be carried out by moving from one to another, money is always an issue especially for the students. Research had to be carried in pure English language, so the language of the research is a limitation in this study because many of the common booth owners as well as the consumers did not have good understanding of English language. Time and workforce are also limiting factors in undertaking this study. Research had to be conducted between 5: am to 7: am inorder to identify the booth, so time was absolutely limited. The study area is also limited; it is oriented within Kathmandu valley only. The study is affected by personal biasness of the respondents. Primary data collection is affected by irresponsiveness of customers, booth owners and other various personnels involved. Since the research is carried by mere basic knowledge of the student, thus research may lack some important facts and opinions.

4|Page

METHODOLOGY:
The research was conducted over a 25 day period in the first quarter of 2070 B.S by our research team. The sources of information for this report are: Employees from the corporation itself. Data gathered from the Internet. Classified data (routine & monthly) from the corporation. Following methodologies have been incorporated for carrying out this research: Direct interview with the customers, employees and competitor workforce. Information collected through questionnaire. Field visit On-Line research including third party references. Every effort is made to provide accurate information. The information provided is best available on the day the data was gathered. Changes in personnel, company products and operations change daily.

5|Page

DATA ANALYSIS:
Secondary data analysis: Table 1.0 - Share of cow milk(in liters) in total sales (standard milk, whole milk, fresh milk, cow milk).
type of milk months

Standard 3213170 3218585 3200765 3198785 12831305

whole 519580 527590 553840 583265

Fresh 2460 4860 2600 4860

Cow 96804 231810 215640

Total 3832014 3982845 3972845

Share of cow milk 2.53% 5.82% 5.43% 5.39% 19.17%

Falgun Chaitra Baisakh Jestha Total

215651.5 4002561.5

2184275 14780 759905.5 15790265.5

The cow milk was launched in market since Falgun. During the first month of introduction the total sales is liters was 96804, which was only 2.53% of the total sales of milk by DDC. Similarly, the sales of cow milk during the following month Chaitra, Baisakh and Jestha were 231810 (5.82%), 215640 (5.43%) and 215651.5 (5.39%) respectively. Figure 1.0 - Share of cow milk in Falgun:

6|Page

Figure 1.1 - Share of cow milk in Chaitra:

Figure 1.2 -Share of cow milk in Baisakh:

7|Page

Figure 1.3 -Share of cow milk in Jestha:

Table 1.1 -Trend Analysis of Cow milk: Months Falgun Chaitra Baisakh Jestha Cow milk in liters 96804 231810 215640 215651.5 Change (%) 139.46 -6.97 0.0053

The sales of cow milk started in the month of Falgun 2070. Even though there is no sufficient data for trend analysis, it is just attempted to show the trend of 4 months regarding the sales of cow milk. In the starting month of Falgun the sales was 96804 liters however in the following month Chaitra the sales was increased to 231810 liters(139.46%) but the sales was decreased in the month of Baisakh to 215640 liters(-6.97%), in the following month Jestha sales was 215651 liters(0.0053%).

8|Page

Figure 1.4 -

Primary data Analysis: Primary data are collected to meet the specific purpose of the study that is to know the responses of the customers. In essence, the questions that researchers ask during primary data collection are tailored to elicit the data that will help them with their study. The main purpose behind asking the questionnaire was to know the response of the customers toward cow milk of DDC. As a sample population 35 people were asked to fill up the questionnaire but only 30 people responded. Degree of familiarity of customers with DDC and its cow milk Regarding the familiarity of customers with DDC and its cow milk, the respondents were asked whether they are familiar with DDC and its cow milk or not. The responses regarding this are presented in the table 1.2 Table 1.2 Familiarity with DDC S. No. Research No. of respondents Variable 1 Yes 29 2 No 0 3 Just a little 1

Percentage 96.66% 0% 3.33%


9|Page

Regarding Table 1.2, it has been observed that out of 30 people 96.66% people were familiar with the name DDC. There were no such people who were not familiar with the name DDC; however there were 3.33% people who were only just a little bit familiar with the name DDC. Familiarity with cow milk from DDC The responses regarding this are presented in the table 1.3 Table 1.3 S. No. Research No. of respondents Percentage Variable 1 Yes 21 70% 2 No 1 3.33% 3 Not much 8 26.66% Regarding Table 1.3, it has been observed that out of 30 people 70% people are familiar with cow milk from DDC. There were one people who were not familiar at all with cow milk from DDC; however there were 26.66% people who were not much familiar with the cow milk from DDC. Comparison (Table 1.2 and Table 1.3) When we compare both tables an interesting fact is noticed. The percentage of people familiar with the name DDC is 96.66% however there are only 70% people who are familiar with the cow milk from DDC. Thus there are 26.66% people who are familiar with DDC but they are not aware with the cow milk from DDC. Satisfaction of customers regarding the promotion effort of Cow milk The responses regarding this are presented in the table 1.4 Table 1.4 S. No. Research Variable 1 Yes 2 You must be joking 3 Ive not seen any

No. of respondents 6 5 19

Percentage 20% 16.66% 63.33%

10 | P a g e

Regarding Table 1.4 it has been observed that out of 30 people only 6(20%) people are satisfied with the promotion effort of DDC considering cow milk, there are 5(16.66%) people who said you must be joking when asked whether they were satisfied with the promotional effort of DDCs cow milk, however there were 19(63.33%) people who says that they have not seen any kind of promotional effort by DDC regarding the cow milk.

Have the customers ever purchased cow milk from DDC The responses regarding this are presented in the table 1.5 Table 1.5 S. No. Research Variable 1 Yes 2 No 3 Once

No. of respondents 23 5 2

Percentage 76.66% 16.66% 6.6%

Considering Table 1.5 it has been seen that 23(76.66%) people out of total 30 have purchased the cow milk from DDC but that may not be regular purchase, there were 5(16.66%) people who have never purchased cow milk from DDC and there were 2(6.6%) people who have purchased cow milk only once.

What is the customers rating for DDC The responses regarding this are presented in the table 1.6 Table 1.6 S. No. Research Variable 1 Excellent 2 Good 3 Average 4 Poor

No. of respondents 3 21 3 3

Percentage 10% 70% 10% 10%

11 | P a g e

Considering Table 1.6 it has been observed that there are 21(70%) people who have rated DDC as Good. However there are 3(10%) people who have rated DDC as Excellent, Average, and Poor respectively.

Level of customers satisfaction from DDC rated in (1-10) scale. Remaining under a scale of 1 to 10, there are people who have rated DDC as low as 1 out of 10 and there are also people who have rated DDC as high as 9 out of 10. When total is done the figure is 173 out of 300. Since the questionnaire were filled up by 30 people the average rating for DDC is considered above average.

(173/30) =

5.93

which can be

Would the consumers recommend DDCs Cow milk to their friends? The responses regarding this are presented in the table 1.7 Table 1.7 S. No. Research Variable 1 Yes 2 No 3 It depends

No. of respondents 11 4 15

Percentage 36.66% 13.33% 50%

Considering Table 1.7 it has been noticed that out of 30 people 11(36.66%) people are ready to recommend the DDCs cow milk to their friends. There are 4 people (13.33%) who do not agree to recommend the cow milk to their friends and there are 15(50%) people who are in dilemma and are not sure whether they will recommend the cow milk to their friends or not so they say it depends.

12 | P a g e

Could the next milk purchase be from DDC and would it be cow milk The responses regarding this are presented in the tables below. Next milk purchase from DDC The responses regarding this are presented in the table 1.8 Table 1.8 S. No. Research No. of respondents Percentage Variable 1 Yes 14 46.66% 2 No 3 10% 3 May be 13 43.33% Considering Table 1.8 out of 30 respondents 14(46.66%) agree to make their next purchase from DDC, however 3(10%) absolutely disagree to make their next purchase from DDC and 13(43.33%) people says may be their next purchase will be from DDC, they are not sure. Next milk purchase be Cow milk from DDC The responses regarding this are presented in the table 1.9 Table 1.9 S. No. Research No. of respondents Percentage Variable 1 Sure 5 16.66% 2 Cant say 19 63.33% 3 No 6 20% Considering Table 1.9 out of 30 people who filled up the questionnaire 5(16.66%) are absolutely certain that their next milk purchase would be cow milk from DDC. There are 19(63.33%) people who are not in a position or who are not sure whether their next milk purchase would be cow milk from DDC and there are 6(20%) people are says there is no chance that their next milk purchase would be cow milk from DDC.

13 | P a g e

Comparison (Table 1.8 and Table 1.9) As we compare Table 1.8 and Table 1.9 we come across an interesting fact as why the sale of cow milk is stagnant in the market. We here notice that there are 14(46.66%) people who agree that their next milk purchase would from DDC but there are only 5(16.66%) people out of those who agreed that their next milk purchase would be from DDC who agree that their next milk purchase would be cow milk from DDC. Here we notice that even though people are ready to purchase from DDC they are not willing to buy a cow milk rather they buy other (46.66 % - 16.66%) milk from DDC. The deviation we found here is = 30 %. Here 30% people are such people who purchase other milk from DDC but do not purchase cow milk from DDC.

Do customers believe in quality as claimed by DDC regarding cow milk? The responses regarding this are presented in the table 2.0 Table 2.0 S. No. Research Variable 1 Yes 2 Only little 3 Not much 4 Not at all

No. of respondents 9 14 3 4

Percentage 30% 46.66% 10% 13.33%

Considering Table 2.0 weve figured out that there are 9(30%) people who believe in quality of cow milk as claimed by the corporation, there are 14(46.66%) people which can be considered quiet a considerable margin who believe in quality only a little, this may be one reason why the cow milk market is stagnant because significant margin of people doubt in quality as claimed by DDC. Furthermore there are 3(10%) people who have not much believe in quality as claimed by DDC and there are 4(13.33%) people who absolutely do not believe in quality of cow milk as claimed by DDC.

14 | P a g e

People are not absolutely sure about the quality of cow milk. Only 30% people believe in quality however rests of 70% people are in uncertainty about the quality of cow milk as claimed by DDC.

Any other comments for the company/cow milk During primary data collection, not only questionnaires were filled. There were personal visit to the Booths in various routes. The interview was conducted with the Booth man or the Booth owners as well as the consumers and retail shopkeepers who purchase the milk from Booth near to him. As no primary data collection would be complete until or unless the opinions of the consumers are understood, so keeping that thing in mind effort was made to speak to as many people as possible either formally or informally. Peoples/customers/consumers/booth mans comments are as follows There were numerous number of comments and complains but only major are mentioned below. DDC lacks in promotional activities regarding cow milk. It would be better if extra efforts would be provided towards promotional activities and customers awareness I would like the company to upgrade its quality since it has a very unusual kind of smell even if we have boiled it properly. Though being the leading brand DDC hasnt been able to capture the hearts with its quality, so quality should be considered a major issue. I have to say that, the milk sold by the DDC must maintain its quality as well as its merchantability before sending to the market. So far its been providing excellent milk. But, promotional activities are less. Besides word of mouth technique, advertisement could be helpful.
15 | P a g e

It would be better if price of the cow milk be reduced with improved quality. The quality of DDC milk used to be good few years back, but now its degrading. It is losing its fame that is has established in past years. So, the company needs to maintain its quality. DDC vaye aru kina Chhaiyo Improper packaging leading to leakage of milk. Commission should be increased and returning back of unsold milk should be regular and certain without making gloomy face. Cow milk has unusual kind of smell and it is very thin for Tea. Expensive than other milks. The company hasnt been able to develop loyal customer in the case of cow milk, People have not been provided the reason as to why should they shift to cow milk from what they have been consuming previously. Irresponsible delivery man and their behaviors are creating negative image of DDC in the mind of customers. No inspection or visit from the companys top personnels either in routes or any booths. No seriousness is shown by the DDC with regards to cow milk and its promotion and distribution.

16 | P a g e

FINDINGS:
Findings are the result of research or an investigation. Findings are generally summarized outlines of the data analysis part. The research was conducted to know the reason behind the stagnant sales of cow milk from DDC. Various reasons were there behind the stagnancy of sales. However some major findings of this research are as follows: The sale of cow milk as compared to other milks from DDC is very sparse ever since its introduction. Its share out of total 100% starting from the month Falgun to Jestha were 2.53%, 5.82%, 5.43%, 5.39% respectively. The total contribution made by the sale of cow milk has increased by more than double (2.53% to 5.82%) from the month of Falgun to Chaitra which is the increase of 130.03% but after the month of Chaitra it has been decreasing continuously. Amount of cow milk sold in the month of Jestha (215651.5 liters) is slightly higher than in Baisakh (215640 liters) but its total contribution(5.39%) is still less as compared to Baisakh (5.43%) because of the greater increase in sales of other milks as compared to cow milk. When the trend of sale in cow milk is analyzed separately without comparing to other milks from DDC, its sales has increased by 139.46% from the month of Falgun to the month of Chaitra but the percentage goes to (minus) -6.97 in Baisakh and in the following month Jestha it has again increased by 0.0053%. Months Falgun Chaitra Baisakh Jestha Cow milk in liters 96804 231810 215640 215651.5 Change (%) 139.46 -6.97 0.0053

17 | P a g e

About 96.66% people are familiar with the name DDC.However, out of those 96.66% people only 70% people are aware about the DDCs cow milk. Here we notice 26.66% people still dont know about cow milk even though they know about DDC and its other products. It is found that while 46.66% people agree to make their next milk purchase from DDC, only 16.66% people claim that though their next milk purchase would be cow milk from DDC.

Table 2.1 - Mean, Median & Standard deviation of past four month sales

Falgun Chaitra Baisakh Jestha N Mean Median Std. Deviation

standard 3213170.00 3218585.00 3200765.00 3198785.00 4 3207826.25 00 3206967.50 00 9590.13067

whole 519580.00 527590.00 553840.00 583265.00 4 546068.7500 540715.0000 28792.77351

fresh 2460.00 4860.00 2600.00 4860.00 4 3695.0000 3730.0000 1346.43975

cow 96804.00 231810.00 215640.00 215651.50 4 189976.3750 215645.7500 62580.55432

Mean and median are just a simple calculation and doesnt have a great deal of meaning. However, Standard deviation has a deeper sense and meaning. Standard deviation is always preferred small. Small standard deviation signify that the sales is less volatile or we can say more consistent where larger standard deviation signify more volatile data that means sales can be up and down drastically. When we analyze past four months most consistent sales has been of fresh milk where cow milks sale has been most volatile.

18 | P a g e

RECOMMENDATIONS:
Cow milk research has led to a concrete finding for the research team as well as for the organization. The stagnancy and market enhancement hindrance of cow milk were thoroughly studied and conclusions have been derived. Various technical as well as non technical traits are seen acting as barrier to cow milk as a successful product in the market. If DDC is committed in the development of cow milk as a nationwide consumable and successful product, it must follow up on the following recommendations tabulated based on the research done. Vigorous advertisement is absolutely necessary at most. A press conference during the launch of the product is seriously not even close to required advertisement level. The effect is seen as public unawareness regarding cow milk and its attributes such as quality, usability etc. Price factor is also seen as a major trait responsible for the current market stagnancy of cow milk. If only its price can be matched approximately near with standard or whole milk product, market dominance of the product is almost certain. Limited use of cow milk i.e. for worshipping purpose and for child and old market target has been acting as a major barrier for the market area enhancement. People are to be made aware regarding its specialty of direct consumption over using it for tea preparation. Unsatisfied booth point retailer and carefree delivery men appointed by DDC are to be monitored properly. Retailer can be provided with a little more but reasonable commission rate and delivery men are to be directed to be more consumers friendly and bring positive attitude and behavior. Packaging of the product plays a vital role in its purchase. So packaging should be made appealing and attractive to all types of customers.

19 | P a g e

Contribution in social welfare activities and public events should be considered in order to improve the brand image and brand position in the market. Some of the consumers were found to be highly brand switchers. So organization should try to create brand loyalty among such consumers.

20 | P a g e

REFERENCES/BIBLIOGRAPHY
BOOKS: Kotler, Philip, keller, kevin, koshy, Abraham, Jha, Mitheloshwor(20070) Marketing Management: A South Asian Perspective, 12th ed. (Pearson Education). Barry, Berman. (2009). Retail Management.(Pearson Education)

REPORTS: Marketing Research reports of DDC.

WEB-PAGES: http://www.dairydev.com.np/ http://www.abhiyan.com.np/articlethecorporate_vol3_issue3_Brandspeak_DDC_CowMilk http://en.wikipedia.org/wiki/Marketing_research

21 | P a g e

ANNEXTURE
NAME: ADDRESS: 1. Are you familiar with the name DDC? Yes No Just a Little

2. Do you know about cow milk from DDC? Yes No Not Much

3. Are you satisfied with the DDCs promotion effort regarding cow milk? Yes You must be joking Ive Not seen any

4. Have you ever purchased cow milk from DDC? Yes No Once

5. How would you rate DDC? Excellent Good Average Poor

6. How satisfied are you with your service from DDC (1- 10)? 7. Would you recommend DDCs cow milk to your friend? Yes No It Depends

8. For your next milk purchase would you purchase from DDC? Yes No May Be

9. Could it be that your next milk purchase is cow milk from DDC? Sure Cant say No

10. Do you believe in Quality as claimed by DDC regarding cow milk? Yes Only little Not Much Not at All

11. Would you at least try the cow milk once now? 22 | P a g e

I Will

Not Sure

I Havent Been given a reason to

12. Are there any other comments you have for the COMPANY?

23 | P a g e

S-ar putea să vă placă și