Documente Academic
Documente Profesional
Documente Cultură
PART A
Industry Profile
Dairy is a place where handling of milk and its milk products is done and technology refers to
the application of scientific knowledge for practical purposes. Dairy technology has been defined
as that branch of dairy science, which deals with the processing of milk and the manufacture of
milk products on an industrial scale. In developed dairying countries such as the USA, the year
1850 is seen as the dividing line between farm and factory scale production. Various factors
contributed to the change in these countries, concentration of population in cities where jobs
were plentiful, rapid industrialization, improvement of transportation facilities, development of
machines etc., whereas the rural areas were identified for milk production, the urban centers
were selected for the location of milk processing plants and product manufacturing factories.
These plants and factories were rapidly expanded and modernized with improved machinery and
equipment to secure the various advantages of large-scale production. Nearly all the milk in the
USA before 1900 was delivered as raw (nature) milk. Once pasteurization was introduced, it
developed rapidly. Mechanical refrigeration helped in the rapid development of the factory
system of market distribution. Milk may be defined as whole, fresh, clear lacteal suretion
obtained by the complete milking of healthier milk animals. It represents the perfect food for
man nearly than any other natural food. An adequate consumption of milk can correct dieting
deficiencies for most people strong, healthy bodies. It is delicious and appetizing food as well as
being healthful.
The major constituents of milk are water, fat, protein, lactose and mineral water. The major
constituents are phospholipids, sterols, vitamins, enzymes, pigments etc. The true constraints are
milk fat, casein and lactose. Milk is absolutely essential for the welfare of the human race. The
cow has been rightly called, “The Foster Mother of Human Race” and she is found in most of the
civilized countries of the earth.
Asian Dairy
Scene With 60% of the world population, Asia accounts for only 20% of the global milk
production. The total world production of more than 500 million tons for a population of about 4
billion amounts to an average annual per capita availability of 100kg. The corresponding figure
for Asia is only about 27 kg and the consumption is about 30kg. Some 10% of milk consumed in
Asia is imported. In several Asian countries, imports of dairy products, both as finished products
in consumer packs and in bulk for recombination in to milk have helped create a dairy market
and a milk processing industry. The Asian countries have been producing over 96% of the
world’s buffalo milk output, estimated at 48 million tons, India accounts for more than 30% of it.
The recent formation of the Asian Buffalo Association will help overcome the neglect that the
buffalo has suffered for decades.
Dairy in India:
In India, dairying has been practiced as a rural cottage industry since the remote part. Semi-
commercial dairying started with the establishment of military dairy farms and co-operative milk
unions throughout the country towards the end of nineteenth century. During the earlier year,
each household in those countries maintained its family cow or secured milk from its neighbor
who supplied those living close by. As the urban population increase, fewer households could
keep a cow for private use. The high cost of milk production, problems of sanitation etc.,
restricted the practice, and gradually the family row in the city was eliminated and city cattle
were all sent back to the rural areas.
The Indian dairy industry has made rapid progress since independence. A large number of
modern milk plants and product factories have since been established. These organized dairies
have been successfully engaged in the routine commercial production of pasteurized bottled milk
and various western and Indian dairy products. With modern knowledge of the protection of milk
during transportation, it become possible to locate dairies where land was less expensive and
crops could be grown more economically. In India, the market milk technology may be
considered to have commenced in 1950 with the functioning of the Central Dairy of Aarey milk
colony, and milk product technology in 1956 with the establishment of AMUL dairy, Anand. The
industry is still in its infancy and barely 10% of our milk productions under goes organized
handling.
Organized milk handling was made in India with the establishment of Military Dairy Farms.
Handling of milk in co-operative milk unions established all over the country on a small
scale in early stages.
Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945.
Pasteurization and bottling of milk on a large scale for organized distributed was started at
Aarey - 1950, Calcutta (Haringhata) - 1958, Delhi – 1959, Worli – 1961, Madras - 1963.
Establishment of milk plants under the 3-year plans for dairy development all over India.
They were taken up with the dual object of increasing the national level of milk
consumption and ensuring better returns to the primary milk producer. These main aims were
to produce more, better and cheaper milk. In terms of percentages we have 51% of the Asian
population. Amul A situation prevailed in the case of milk about 30 years ago; when the
exploitation by middlemen had forced the milk producers to sell milk at throw prices. The
answer to such a situation was found in developing a system that enables milk producers to
own and operate not only their processing facility, but also the inputs, delivery machinery,
and the marketing of finished products. The integrated approach first proved very successful
in Kaira-the AMUL organization and through the Operation Flood Programme, aimed to
establish similar farmer’s organizations in 18 districts in the country. The Programme when
implemented did face some preliminary problems, but these were overcome, so much so that
when the IBRD and World Bank came forward to finance dairy projects in Karnataka,
Rajasthan and Madhya Pradesh. The results were that 13 milk producers’ co-operative unions
were established. Based on the success of these 13 unions bodies owned by the farmers
themselves. The other phase of dairy development, Operation Flood II, being implemented to
bring the total number of such district unions to 155, and cover some 10 million farmers. The
success of these 13 unions have further demonstrated that problems can best solved if the
agency implementing the program is owned and operated by the producers themselves, who
employ the best professionals that the responsibility of such an organization is not only to
guarantee a remunerative market for the rurally produced commodity by its member
producers, consumers has increased from 175 to 473 liters.
Innovation
Dairy co-operative society is a basic organization unit functioning at the village level. Reach
The Dairy Co-operative network
Milk Production
India’s milk production increased from 21.2 million MT in 1968 to 84.6 million MT in 2001-
02.
India’s 4% annual growth of milk production surpasses the 2% growth in population; the net
increase in availability is around 2% per year.
National Dairy Development Board (NDDB) is the central cooperative board of the country and
was created to promote, finance and support producer-owned and controlled organizations
mentioned above.
Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the Apex Body in
Karnataka representing Dairy Farmers' Co-operatives. It is the second largest dairy co-operative
amongst the dairy cooperatives in the country. In South India it stands first in terms of
procurement as well as sales. One of the core functions of the Federation is marketing of Milk
and Milk Products. The Brand “nandini" is the household name for Pure and Fresh milk and milk
products. KMF has 13 Milk Unions throughout the State which procure milk from Primary Dairy
Cooperative Societies (DCS) and distribute milk to the consumers in various Towns/Cities/Rural
markets in Karnataka.
The first ever World Bank funded Dairy Development Program in the country started in
Karnataka with the organization of Village Level Dairy Co-operatives in 1974. The AMUL
pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial
assistance from World Bank. The dairy co-operatives were established under the ANAND pattern
in a three tier structure with the Village Level Dairy Co-operatives farming the base level, the
District Level Milk Unions at the middle level to take care of the procurement, processing and
marketing of milk and the Karnataka Milk Federation as the Apex Body to co-ordinate the
growth of the sector at the State level.
FEDERATION FUNCTIONS
Presently Mother Dairy and ‘Nandini Milk Products’ at Bangalore are under the control of KMF.
Four cattle feed plants, a central training institute and a centralized testing and quality control
laboratory are functioning under the direct control of KMF Coordination of activities between
the unions and developing market for the increasing milk production is the responsibility of
KMF local milk market in the area of union is being organized by the respective unions.
Surpluses and deficiencies of liquid milk amongst the member milk unions and disposing milk
added products at a remunerative price are managed by the Federation. Marketing of liquid milk
and products outside the state is organized by the federation. Milk and Milk products are sold
under NANDINI brand name, which has become household name in Karnataka. To make
products available to consumers, distribution network has been established and sales depots are
commissioned at Bangalore, Hubli, Chennai, Tirupati and Mangalore. The distribution network
includes 150 major professional wholesale dealers spreading across all the southern states of
India. Under Nandini brand, toned milk, homogenized toned milk, sterilized milk and full cream
milk is being sold. The major products includes Nandini Ghee, Butter, Curds, Skim Milk
Powder, Cheese, Badam Powder, Paneer, Peda, Mysore Pak, Burfi, Jamoons, Khova, flavored
milk and Ice Cream. Nandini Ghee is known for its purity and rich taste and is one of the largest
selling ghee brand in the country. The Ghee quality conforms special Agmark quality standards.
MILK UNION
SCOPE
Union is the middle tier of the complex cooperative organization network. Unions are formed by
federating societies in earmarked geographical area. The milk unions are organized to make them
economically viable and the jurisdiction extends from one district to 3 districts. There are five
milk unions whose jurisdiction covers 2 districts each, 3 unions cover 3 districts and one union’s
territory extends to 4 districts. All unions own their milk processing facilities.
FUNCTIONS
DCS are grouped at district level into cooperative milk producer’s unions. The unions organize
new DCS, assist DCS with their management including audit of accounts, supervise, purchase,
process and market the liquid milk. Provision of input facilities are also organized by the union
and channelized to the dairy farmers through DCS. The input facilities include supply of cattle
feed, fodder, AI, veterinary services, training and know how on scientific animal husbandry.
COMPANY PROFILE
The Tumkur Milk Union registered as "Tumkur Co-operative Milk Producers Societies Union
Limited" under registrar of Co-operative societies act on 27th June 1977. The dairy co-operatives
were established under the ANAND pattern in a three tier system. Formation of Village Level
Dairy Co-operatives societies at village level, Milk Unions at District Level to take care of the
procurement, processing and marketing of milk and Federation at state level to co-ordinate milk
movement and marketing at the State level.
The dairy development activities started during 1976 by the Karnataka Dairy Development
Corporation (KDDC) with the object of supporting the marketing activities of the Bangalore
market. Hence, 30,000 liters capacity farm cooler was established. Subsequently, during 1981,
this has been converted as 60 TLPD feeder plant. The processing capacity of the dairy was
increased to 1 lakh liters during 2005 under Perspective plan phase I. Due to the rapid increase in
milk procurement, again the processing capacity of the dairy will be increased to 3.25 lakh liters
per day.
Apart from this Union owns 4 chilling centers at Sira (20 TLPD), Yediyur (20 TLPD), KB Cross
(60 TLPD) and Madhugiri (60 TLPD). Besides this, Union has 18 Bulk milk coolers and 185
Automatic Milk Collection centers.
The Union sells milk and milk products under the brand name of “Nandini”.
New societies will be organized in the uncovered areas based on milk potentiality, surplus and
taking the cost of milk transportation. There are about 218 milk collections centers are working
in the milk shed. These collection centers will be converted into societies. To encourage women
members, every year it is planned to organize 40 societies. As at the end of June 2012, the Union
has 1010 registered DCS and 995 commissioned DCS. Out of which, 944 are functional. There
are 206 exclusive women DCS functioning.
MARKETING ACTIVITIES
The marketing area includes entire Tumkur district and a small part of Bangalore urban and rural
districts. The Union sells varieties of milks i.e. Toned Milk, homogenized toned milk,
Homogenized Cow Milk and Shubam Milk. The other range of the products being manufactured
and marketed includes Butter Milk, Curd, Ghee and Peda. Besides this, the Union sells all the
products produced by Nandini Milk products, a unit of K.M.F. The Union is increasing its market
share steadily. The present aggregate growth rate works out to be around 12.85 % for the past 5
years. The average milk sale during the month of June 2012 is 2lakh liters per day.
MEMBERSHIP
As on June 2012, the total Members enrolled was 234507. Out of which 92516 are Small
farmers, 59966 are Marginal farmers, 35109 are Landless labor and others 46916.Out of Total
Membership 67708 are women members, 23213 Schedule caste and 18847 are the Scheduled
Tribe members.
MILK PROCUREMENT
During 1975-76, the average milk procurement was 1035 kgs per day. At the time of registration
of the Union, the milk procurement rose to 9486 kgs per day. From then onwards, the milk
procurement increased by many folds due to effective implementation of various input activities.
The average milk procurement during the month of June 2012 is 4.73 lakh kgs per day. On 21st
of May 2012, the Union procured 4.81 lakh kgs per day and it is recorded as highest milk
procurement since inception. At present, the Union procures 4.50 (2012-13 up to June) lakh kgs
of milk daily from 944 DCS comprises of 2.34 lakh members. The Union had registered a
growth to the tune of 15 % for the last 5 years.
Specialty of the Union: First milk union to turn around after availing the financial assistance
under rehabilitation scheme.
Ownership Pattern
Elected Body: The Co-operative society members are eligible for electing the President and
other governing members. The President heads the elected body. The elected body controls the
societies and they keep a close watch on the working of the Co-operative societies and TUMUL.
VISION STATEMENT
Tumkur milk union in committed to conserve energy and maintain in the areas of plants by
educating all the connected staff and thereby gaining competitive edge by reducing operation
cost control, increasing market share of milk and milk products for prosperity of producers,
consumers and employee for mutual help for nation and organizations.
MISSION STATEMENT
Tumkur Milk Union is committed to socio economic development of its member milk producers
by adopting advanced technology to make dairying a profitable business by the dedicated
workmanship to provide best services to its members and consumers thereby achieving the best
position in the country.
VALUES
Honesty
Discipline/ Timeliness
Quality
Trust
Impartial
Savings
Transparency
To provide assured and remunerative market for all the milk produced by the farmer
members.
To provide hygienic milk to urban consumers.
To build village level institutions in co-operative sector to manage the dairy activities.
To ensure provision of milk production inputs processing facilities.
To facilitate rural development by providing opportunities for self-employment at village
level, preventing introducing cash economy and opportunity for steady income.
Quality Policy
Tumkur Co-op Milk Union is certified as ISO 22000: 2005 from DNV Business Assurance from
Food Safety System Certificate is committed to supply safe Milk & Milk Products to the
satisfaction of customers by:
Tumkur milk union assures supply of pure and fresh milk to customers. This is achieved by
having stringent Quality Control mechanism in place.
PHASE-1
PHASE-2
INFRASTRUCTURAL FACILITY
Tumkur co-operative milk producer society union ltd has following infrastructural facilities:
Transportation
Pooling, chilling
Testing
Storage
Transportation
PROCESS OF MILK
Reception of raw
Chilling
Pasteurization
Standardization
Cold storage
PROCESS EXPLANATION
1) COLLECTION OF MILK
In this stage, the milk is bought from the various DCS to the main dairy in can containing 40
liters capacity of in milk in a vehicle. Once the milk is bought to the dairy it undergoes for
testing of FAT & SNF.
2) TESTING:
In this stage the testing takes place in three different processes, such as:
Smelling (odor) test: A man at the dock station checks the acidic nature of the milk by
smelling or tasting the raw-milk. If it is found that the tasted milk has some bad smell or
taste, then the dairy will pay lower rate of the milk to such society members than the normal
rates.
Extraneous matter appearances-This test is conducted by the chemist. The chemist checks
two aspects, mainly whether the milk is contaminated or not & secondly whether the milk is
in liquid from or curd from. He also checks for the presence of any extraneous matters like
dust & flies which results in spoilage of milk.
Acidic test-The payment to suppliers depends mainly on the SNF & FAT content in the raw
milk. The suppliers may add sugar to the milk so as to increase the content of SNF & FAT
content in the milk. Hence to avoid adulteration, this test in conducted. In this process, 10ml
of milk & 1ml of hydrochloric acid is collected in a test tube. This solution is shaken well &
is heated for 5minutes. If the solution turns into orange color it proves that sugar is added to
it.
packets per hour. The machine packs the milk in 500ml pouches made of plastic. These
machines are used to pack all types of milk as well as other products like ghee.
After packing the milk pouches are arranged in caters. Each cater contains
10liters of milk. These caters are then kept in a cold room which has a temperature of about
5 degree Celsius or below sometimes.
Channels of distribution
The distribution network of milk was found to be very systematic and has made distinct role in
the successful marketing of milk.
Storage
Dealers or Retailers
Consumers
Consumers
The processed and pasteurized milk is first packed and stored, and then it is distributed to the
target customers.
The success of each and every business unit is mainly depending on how brilliantly it faces the
competitions TUMUL dairy is not out of competition.
1. Good morning
2. Heritage
3. Dodla
4. Arokya
5. Gopathi
Market Share of Nandini Milk Products
The market share of Nandini milk is shown as below:
MILESTONES
17 2005 Dairy processing capacity increased from 60000 liters to 1 lakh liters
19 2006 Grade 'A' certification from department of audit for the year 2006-07
-07
20 2007 Online RMRD computerization of milk procurement truck sheet
25 2011
A)Milkprocurement
1. Crossed 1 Lakh Kgs Milk Procurement on October 2001.
2. Crossed 2 Lakh Kgs Milk Procurement on October 2005.
3. Crossed 3 Lakh Kgs Milk Procurement on June 2009.
4. Crossed 4 Lakh Kgs Milk Procurement on June 2011.
B)Sales
1. Crossed 1 Lakh Liters Milk sales on June 2006.
2. Crossed 1.5 Lakh Liters Milk sales on February 2009.
3. Crossed 2 Lakh Liters Milk sales on April 2012.
MILK DEFINITION AND ITS COMPOSITION
Milk may be defined as the whole, fresh, clean, lacteal secretion obtained by complete milking of
one or more healthy milk animals, excluding that obtained within 15 days before or 5 days after
calving or such periods may be necessary to render the milk practically colostrums-free and
containing the minimum prescribed percentages of milk fat and milk s o l i d s - n o t - f a t .
Milk SNF means milk solids-not-fat, comprising protein, carbohydrates, vitamins, minerals, etc
in milk other than milk fat.
Milk standards
PRODUCT PROFILE
Nandini homogenized
toned milk is pure milk
containing 3.1% Fat and
8.5%SNF.This is
HOMOGENISED homogenized and
TONED MILK pasteurized.
MILK PRODUCTS
a) Structure.
b) System.
c) Strategy.
d) Skills.
e) Style.
f) Staff.
g) Shared Value.
A) STRUCTURE
MANAGING DIRECTOR
Manager (P&I) Manager (dairy) Manager (mkting) Manager (Finance)Manager (Admin)Manager (System)Manager (purchases)
Dy. Managers Dy. Manager Dy. Manager Asst. Managers Asst. Managers Asst. Managers Purchase Officer
Asst. Managers 9
Asst. Managers Asst. Managers Accounts officer Admin. Officer Admin. Assistance Superdnts.
9DAIRY
Helpers
9DAIRY
“Study on promotional activities of nandini milk and its products.”
1. ADMINISTRATION
2. FINANCE
3. MARKETING
4. PROCUREMENT AND INPUT
5. M.I.S. (Management Information System)
6. PURCHASES
1. ADMINISTRATION DEPARTMENT
---------------------------------------------------
Functions:
2. FINANCE DEPARTMENT:
3. MARKETING DEPARTMENT
Functions:
4. PRODUCTION DEPARTMENT:
Milk procurement: The average milk procurement during the month of June 2012 is 4.73 lakh
kg per day. On 21st of May 2012, the Union procured 4.81 lakh kg per day and it is recorded as
highest milk procurement since inception. At present, the Union procures 4.50 (2012-13 up to
June) lakh kgs of milk daily from 944 DCS comprises of 2.34 lakh members. The Union had
registered a growth to the tune of 15 % for the last 5 years.
Functions :
6. PURCHASE DEPARTMENT:
Functions:
B) STAFF:
STAFF STRENGTH:
Totally 362 employees are working in different departments of Tumkur Milk Union, Tumkur. In
addition to that 200 workers are taken on contract basis.
Human resources management processes used to develop managers, ways of basic values of
management cadre, ways of introducing young recruits to the company.
Staffs are nothing but keeping the position fixed in the structure. Staffs, the people in the
organization are treated in two ways. Pay scales, appraisal systems man power planning system
etc., at the soft and it refers to morale, attitude of the people towards their works and company.
The top manager does not pay more importance for the development of the staff, but is observed
that the companies which concentrate more on the development of managers for performing
efficiency.
TUMUL has adopted on the job training to improve the necessary skills of the employees. They
send the employees to their own institutions such as ANAND and KMF for training.
Under this method the individuals is placed on the regular job and learns under the Supervision
of guidance of the instructor. Tumkur milk co-operative society provides on-the –job training
according to the needs. For method of training, they are inviting experts from various training
institutions. This type of training will be conducted once in three month, six months, and a year.
COACHING:
The trainers are placed under a particular supervision who functions as a coach in training the
individual. Tumkur milk union provides coaching in order to fulfill the organization
requirements. To give coach they inviting experts from various institutions like National Dairy
Development Board (NDDB), and sometimes top managers of the organizations.
JOB INSTRUCTIONS:
The union conducting this type of training at the time of selected new employees. Under this
method the experts or the superiors explains to the trainees the way of doing the job and allow
him to do the job.
Under this method of training, trainee is separated from the job situation. Here employee can
place his entire concentration to learn rather than spending time in performing job.
VESTIBULE TRAINING:
Under this method, actual work condition is simulated in a classroom, Tumkur Milk Union seeds
its employees to National Dairy Board (NDDB), Confederation Of India Industries (CII) and
NDDB Anand for technical training and clerical job.
SEMINARS:
Under this method the individuals are given training on selected topics. Supervisory personnel
are given seminars in different institutions like NDDB Anand, NDDB E-Board and
Confederation Of India etc.,
ROLE PLAYING:
Under this method participants play the role of certain characters, like general manager,
Marketing manager, technicians, workers and the like. The union provides this training to the
manager\employees in order to develop the interpersonal relationship between the employees.
This type of training is giving by Ramakrishna Institute of Morale (RIM) and Spiritual
education.
C) SKILLS:
The skill here refers to the various skills of the workers. The workers are further divided into
three categories. The first category contains the people who are in the top management level; the
second category consists of the supervisors and office assistants etc and third category consists of
the workers at the operational level.
SKILL MATRIX
D) SYSTEM:
A system is defined as a process, or set of process, that links and orders activities to enable work
to be done and goals to be achieved. System is simple words is the formal and the informal
procedures, including, compensation systems management information system, performance
management system, and capital allocation system that gives everyday activity.
TUMUL maintains the FIFO (First in first out) method to control the inventory in the plant. Here
the inventory should be maintained correctly as it contains only perishable products.
TUMUL maintain weekly milk billing system. It has monthly four cycles. They are from
Accounting system:
Currently they are using Tally 7.2 as the accounting software with VAT
E) STYLE:
1. ORGANIZATION CULTURE:
The dominant values are beliefs and norms, which develop features of organization life.
2. MANAGEMENT STYLE:
Fundamental responsibilities of managers.
Style explains the nature of TUMUL group, Style of leadership or relationship is the manner in
which an individual is given importance to his or her talents, values, knowledge judgment and
attitude to lead and relate to others.
F) STRATEGY:
A strategy is the determination of the basic long term goals and objective of an enterprises and
the adoption of the course of action allocation of resources necessary for carrying out these
goals.
PRICING STRATEGY:
The activity of fixing the price of the product is done by the KMF. It fixes a common price for
the products throughout the state. TUMUL will follow that price only to sell the products
produced.
PROMOTIONAL STRATEGY:
Wall paintings, advertisement through cable network, awareness programs and door to door
campaign is done by TUMUL.
TUMUL provides more incentives to the retailers only in cash.
TUMUL also cover the extension areas.
G) SHARED VALUES:
Guiding concepts, fundamental ideas around which a business is built-must is simple, have great
meaning inside the organization even through outsiders may not see or understand them.
Shared values are identified by which a company is known throughout its business areas. These
values must be explicitly stated as both corporate objective and individuals values. A shared
value is an essential characteristic or attribute promoted by the organization to motive the
behavior of members of the organization.
Honesty
Discipline
Quality
Impartiality
Cost Effectiveness.
STRENGTHS
Huge Demand: There is a huge demand for Nandini milk and milk products in the market.
Milk is very much needed for the children and the people to get good calories, vitamin and
nutritional. There is increased population in India, hence there is increased demand for milk
products.
Availability of Milk: Union can easily get required milk with less cost from the rural area
according to the need. Most of the farmers in Tumkur district are having at least 2 or 3 cows
or buffaloes in their home. Hence there is a good availability of milk for TUMUL.
Brand Nandini: Nandini milk, Nandini ghee, Nandini curd etc Nandini products are well
branded in the market because of their quality.
WEAKNESS
Bad condition of roads and inadequate transportation facilities makes milk procurement
problematic.
Limited advertisements.
OPPORTUNITIES
Export: There is demand for Nandini Products in other states like Kerala, Goa. So it can
export its product to those states along with Tamilnadu and Andrapradesh.
New Product Innovation: It can innovate new products like Ice cream, Pannier and dairy
Sweets in the same product line.
THREATS
Market uncertainty: There is a price fluctuation in the market, it may leads to decrease the
demand and there by reduction in profit.
Competition: Competitors are coming up with similar product, this is the main threat posed
by the external environment.
Many private firms have entered into Manufacturing of dairy products; there is a tough
competition for Nandini like AROKYA, HERITAGE, DODLA and many more.
PART B
GENERAL INTRODUCTION
It is particularly effective in spurring product trial and unplanned purchases. Most marketers
believe that a given product or service has an established perceived price or value, and they use
sales promotion to change this price-value relationship by increasing the value and/or lowering
the price. Compared to the other components of the marketing mix (advertising, publicity, and
personal selling), sales promotion usually operates on a shorter time line, uses a more rational
appeal, returns a tangible or real value, fosters an immediate sale, and contributes highly to
profitability. In determining the relative importance to place on sales promotion in the overall
marketing mix, a small business should consider its marketing budget, the stage of the product in
its life cycle, the nature of competition in the market, the target of the promotion, and the nature
of the product. For example, sales promotion and direct mail are particularly attractive
alternatives when the marketing budget is limited, as it
Promotional Activities is for many small businesses. In addition, sales promotion can be an
effective tool in a highly competitive market, when the objective is to convince retailers to carry
Product or influence consumers to select it over those of competitors. Similarly, sales promotion
is often used in the growth and maturity stages of the product life cycle to stimulate consumers
and resellers to choose that product over the competition—rather than in the introduction stage,
when mass advertising to build awareness might be more important. Finally, sales promotion
tends to work best when it is applied to impulse items whose features can be judged at the point
of purchase, rather than more complex, expensive items that might require hands-on
demonstration.
At present in this competitive business world the milk industry has more brands in the battle field
facing stiff competition in every segment’s targeted. Even brand Nandini is also facing stiff
competition to retain brand in the market. There are many players in the market in this industry
and their own promotional strategies where is to inducing the different consumer segment. Hence
due to this it is crucial to analyze the promotional strategies of Nandini and its competitors to
penetrate the targeted market. In this juncture it has to identify its competitors in this market by
bringing brand awareness in the minds of consumers and also it has to cope up with the updated
advertising and sales promotional strategies. Through this study, the main problem that it studies
during this project work is to find out the effectiveness of the reach of different sales promotion
techniques to the consumers and the awareness of brand among the consumers of Tumkur city.
The main purpose of the study is to identify the awareness of branding system and sales
promotion program adopted by various producers engaged in the production of milk products
and in specific relation to Nandini products.
In order to know the Brand Awareness of Nandini milk and its milk products.
To study the branding system and sales promotion programme of Nandini products among
the consumers of Tumkur city.
RESEARCH METHODOLOGY
The formidable problem that follows the task of designing the research project is known as the
"Research Design".
The design of a quantitative research study includes the method for collecting the data.
1. Purpose of enquiry: The scope of the enquiry is to support the data required to make study
on “An effective study on promotional activities of Nandini Milk and its Products”.
2. Scope of data: The scope of enquiry is limited to the study of the topic concerned only.
3. Sources of data: The data collected through primary data and secondary data.
Sampling Design:
The task of data collection begins after a research problem has defined & Research design of
plan cooked out.
Primary Data:
The primary data collection instrument for the survey is self-administrated and structured
questionnaire which consists of preference and scaling questions. This method of data collection
is quite popular, particularly in case of big enquires. The questionnaire consists of close-ended
and open ended questionnaire. The study includes questionnaire of 16 questions to an effective
study on promotional activities of Nandini Milk and its Products at Tumkur City.
• Interviewing face-to-face
Measuring tools
The measuring and evaluation of data has to be done using statistical tools and techniques such
as simple percentage method, mean, graphical representation with the help of data code sheet
with the help of MS excel or spss software.
Graphs
Charts
Percentage
1) Have you heard about Brand Nandini and its Milk products?
TABLE-1
NO 0 0%
Analysis:
GRAPH-1
70
63
60
50
40
37
30
20
10
0
yes no
Column1
Interpretation: According to my survey, out of 100 all the respondents were aware of Nandini
Milk and its products. It shows most of the people heard about the Brand Nandini and its
Products. And we clear that Nandini Created its own Market over so many existing products.
YES 63 63%
NO 37 37%
ANALYSIS:
Interpretation: Out of 100 respondents 63% of respondent say’s that Nandini’s advertising has
brought change in their perception on Nandini products and remaining 37% say’s that there are
no changes in perception before or after Advertisements.
70
60
50
40
30
20
10
0
yes no
Series 1
3: What factor you consider while purchasing the milk and its milk products?
Quality 59 59%
Price 14 14%
Taste 16 16%
Availability 11 11%
GRAPH-3
6.00%
21.00%
15.00%
Very satisfied
Satisfied
Average
Poor
58.00%
Interpretation: From the source of field survey, out of 100 respondents when the people
purchasing the Nandini products 59% people influenced by the Quality of the product and 14%
price factor, 16% Taste factor and 11% availability factors influence on the purchasing of the
Nandini milk and its products.
% of respondents
opinion No. of respondents
Dealers 32 32%
Campaign 12 12%
21.00%
15.00%
6.00%
Very satisfied
Satisfied
Average
Poor
58.00%
Interpretation: According to my survey 32% of the people know the information by dealers,
13% of people from wall painting, 43% T.V Advertisement and remaining 12% people know the
information by campaigns.
Table – 5: How satisfied are you with the promotional activities of the Brand Nandini?
Satisfied 58 58%
Average 15 15%
Poor 06 06%
6.00%
21.00%
15.00%
Very satisfied
Satisfied
Average
Poor
58.00%
Interpretation: According to my survey 58% of the people has the satisfaction on the
promotional activities of Nandini Milk and it’s products, 21% of the people are very satisfied,
15% has the Average and 6% of the people are not Satisfied about the promotional activities of
Nandini Milk and its products.
Table – 6: Does Nandini’s advertisement convey you enough required information about its
products ?
Yes 47 47%
No 53 53%
RESPONDENTS
YES NO
47.00%
53.00%
GRAPH-6
Interpretation: 47% of the people say’s that Nandini’s Advertisement conveying the required
information about the products, but remaining 53% of the people told that advertisements not
contains enough information about the product.
Banner 17 17%
Radio 12 12%
GRAPH-7
Series 1
Series 1
60
50
40
30
20
10
0
BANNER WALL PAINTING T.V ADVERTISEMENT RADIO
Interpretation: According to my survey in the samples taken out of 100 respondents 17% are
say’s that Banner is effective, 13% Wall painting, 58 T.V advertisements, 12% Radio
advertisement. Most of the people prefer T.V. Advertisements.
Table – 8:
Picturization 35 35%
execution 18 18%
Information 46 46%
Total 99 99%
35.35%
46.46% PICTURIZATION
EXECUTION
INFORMATION
18.18%
Yes 12 12%
No 88 88%
Interpretation: From the source of field survey 8% of the people attended the campaign
organized by the Nandini and remaining 92% of the people not yet attended any campaign
organized by the Nandini.
GRAPH-9
12.00%
YES
NO
88.00%
Table – 10: Are you familiar about Nandini’s products other than its Milk?
Familiar 59 59%
70%
60%
59%
50%
40%
30%
20%
16%
10% 12% 13%
0%
very familier familier only heard non familier
Interpretation: When we come to know about the familiarity of the Nandini product other
than Milk 12% of the people are very familiar about the product, 59% familiar, 16% only heard
and remaining 13 of the people are not familiar about the Nandini products.
Table – 11: Which of the following factor made you to purchase Nandini milk and milk
products repetitively?
Advertisements 11 11%
Series 1
OWN DECISION
Series 1
REFERENCE BY FRIENDS
ADVERTISEMENTS
0 5 10 15 20 25 30 35 40 45 50
Interpretation: There is 11% of the people purchase the product by watching advertisements,
16% of the people by friend reference, 24% of them by their own decision and remaining 49% of
the people purchase the Nandini Products by Price and Brand of the Products.
7 07%
23 23%
38 38%
32 32%
100 100%
Interpretation: According to my survey respondents rated the promotional activities for the
Nandini 7% of the people given 4( ), 23% of the people for 2( ), 38% people for 3, ( ) and
remaining 32% of people given 1( ).
Table – 13: According to you which media is more suitable for promoting Nandini milk and
its products to enhance the sales?
Television 66 66%
Radio 13 13%
Newspaper 15 15%
Magazine 6 06%
70 66
60
50
40
30
20
10
13
15
0
TELEVISION
RADIO 6
NEWSPAPER
MAGAZINE
RESPONDENTS
Interpretation: According to Respondents opinion 66% of the people prefer T.V Advertisements
are suitable to enhance the sales, 13 % of people say’s that radio is suitable, 15% News paper ,
and remaining 6% magazines.
Table – 14: Are you satisfied with the packaging of the Nandini Products?
Satisfied 53 53%
Average 18 18%
NOT SATISFIED
AVERAGE
SATISFIED
VERY SATISFIED
0 10 20 30 40 50 60
Series 1
Interpretation: When we come to know about the response for packaging of the product 17%
very satisfied, 53% satisfied, 18% Average and remaining 12% of the people not satisfied the
packaging of the products.
Real 69 69%
Fake 05 05%
80
70
69
60
50
40 Series 1
30
20
10 13 13
5
0
VERY REAL REAL FAKE CAN'T SAY
Interpretation: Based on my survey the customers are says that 13% of the people Nandini’s
advertisement are very real, 69% of the people feel it is real, 5% feels it is fake and remaining
people not interested to share their opinion.
Table 16: Are you satisfied with nandini milk and its product as a whole?
Yes 72 72%
No 28 28%
INTERPRETATION: Based on my survey the customers are says that 72% of the people are
satisfied with nandini and its products as a whole and 28% of the people are not satisfied.
YES NO
28.00%
72.00%
FINDINGS
The research study was undertaken to identify the effectiveness of sales promotion activities and
so during the study a sample of 100 from various places of Tumkur city out of which 100
respondents were responded from this I was able to give the following findings:
100% of the respondents are aware about the Nandini milk because of its existence from past
35 years and its heritage created in the market of milk field.
Nandini has a good name in the market and it covers the major shares in the market on its
milk products.
Till today Nandini doesn’t give major importance to the promotional activities compare to
other products.
The advertisements are very limited and we can find most of the promotional activities in
urban areas only, but it not yet covers the rural areas for promoting of the product.
Most of the people purchase the Nandini products by the brand name of “Nandini” and
quality of the product matters.
Compare other promotional activities like Banner, Dealers, Campaigns, most of the people
know the information about the products through T.V.
Level of satisfaction about the promotional activities on Nandini products is 58 % and most
of the people not getting more information through the advertisements.
Most of the people expect Nandini products advertisements in the T.V channels because it is
the most effective media when compared to other media.
Nandini organizing the campaigns for the customer but the level of succession rate is very
low.
Familiarity about the Nandini products is good and most of them are aware about the
available products of Nandini.
Suggestions
Brand awareness and sales promotion plays a significant role in marketing and also in the minds
of the consumers. So, the study was conducted to understand, to what extent the consumers are
aware of Nandini milk and its products among the consumers in the city of Tumkur. Based on the
analysis and findings, I was able to provide the following suggestions.
Conclusion
In this study, it has been observed that Nandini brand created a very good brand image among
the minds of the consumers. The main reason for this is quality product offered to the consumers.
Building the good impression about the product in the customer mind is difficult but Customer
has the good impression on the Nandini because of its quality products. And it clears that and
how promotional activities are very important to promote the product in the market and
maintaining the consistence in the market, and it is very toughest job. The importance given for
the promotion activities for the Nandini products is comparatively low but it has the good brand
name in the market as well as in the perception of the customers. If Nandini adopt the new
creative ads and more promotional activities to enhance the sales it really works in the mind of
the customer, and it helps to increase the more shares in the milk market. Recently promoting of
a product in the market is the toughest job but Nandini doesn’t have to face that task since it had
already made a good brand name in the milk products compare to the other manufacturers.
QUESTIONNAIRE
“An Effective study on Promotional Activities of Nandini Milk and Its Products at Tumkur
City” Tumkur Co-Operative Milk Producers Societies Union Ltd,
I am Manjunatha.T.K pursuing final year MBA in Siddaganga institute of technology Tumkur.
As part of my academics, I am conducting this survey to know the Effectiveness of promotional
activities on Nandini milk and milk products at Tumkur. I would be grateful to you if you could
spare your valuable time to answer the following questions.
Name: …………………………………………………………..
Address…………………………………………………………................................
Phone number……………………………………………………
1] Have you heard about Brand Nandini and its Milk products?
a) Yes b) No
3] What factor you consider while purchasing the milk and its milk products?
a) Quality b) Price
c) Taste d) Availability
5] How satisfied are you with the promotional activities of the Brand Nandini?
a) Very satisfied b) Satisfied
c) Average d) Poor
6] Does the Nandini’s advertisement convey you enough required information about its
products?
a) Yes b) No
b) Campaigns
c) Information
10] Are you familiar about Nandini’s products other than Milk?
11] Which of the following factor made you to purchase Nandini milk and milk products
repetitively?
a) Advertisements b) Reference by friends
c)3 d) 2
13] According to you which media is more suitable for promoting Nandini milk and its products
to enhance the sales?
a) T.V b) Radio
c) Newspaper d) Magazine
14] Are you satisfy with the packaging of the Nandini Products?
a) Very satisfied b) Satisfied
c) Average d) Poor
16] Are you satisfied with Nandini milk and its products as a whole?
a) Yes b) No