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ORGANISATION PROFILE
5.1 Introduction –
For the study five dairy organizations were selected. The detailed information
regarding the marketing policies viz. product, price, promotion and distribution
policies of the dairy units were collected by the discussions with the Managing
Director, Marketing Managers and Assistant Marketing Managers of these
organizations.
5.2.1 Introduction –
98
The milk handling capacity of the Kolhapur Zilla Sahakari Dudh
Utpadak Sangh & chilling centers is 10.75 LLPD. Dudh Sangh covers 3499 village
level dairy co-operative on 210 milk routes for milk procurement. Milk & milk
products are sold under the brand name ‘Gokul.’ The Kolhapur Zilla Sahakari Dudh
Utpadak Sangh is also popularly known as Gokul.
Under guidance and assistance from NDDB & FAO, Gokul implemented
a quality management system, in order to improve the quality of its output. Gokul is
IS/ISO, 9001:2000 and IS: 15000:1998 certified dairy unit. It is also Quality
management and food safety system certified dairy, which is accredited by Export
inspection council.
Dudh sangh has won 12 national awards. Prominently, the first one
was in the year 1988-89 in the category of best Milk Product plants. The second,
for the year 1992-93 in the category of outstanding liquid milk plant. The third
and Fourth was in the year 1993-94 in the category of best Dairy processing
industry and best dairy development and public sector. It has received National
recognition in 1994-95 by winning NPC Award along with two national awards
for best performance in animal feed processing.
Installed plant capacity of the Gokul dairy is given considering Gokulshirgaon plant,
Lingnur chilling Centre, Gadhinglaj, Borawade chilling Centre, Bidri, Tawarewadi
chilling Centre, Chandgad, and Gogavave chilling Centre, Shahuwadi.
Table 5.2.1 Installed plant Capacity –
99
Manufacturing capacity of different products by Gokul is given in the following
table.
Product Capacity
Skimmed Milk Powder 41 MTPD
Butter 24 MTPD
Ghee 06 MTPD
Table Butter 03 MTPD
Shrikhand 01 MTPD
Curd 02 MTPD
Paneer 01 MTPD
Lassi 02 KTPD
(MTPD - Metric Ton per day)
(Source: Kolhaupr Zilla Sahakari Dudh Utpadak Sangh Ltd., Kolhapur)
Milk packing capacity of Gokul at Gokul Dairy, Washi, and Pune are given as
follows.
Table 5.2.3 Milk packing Capacity
5.2.2 Objectives –
100
2) Fulfill the growing needs for milk & milk products of the consumers in
Maharashtra and other territory.
3) Supplement the programme extension & inputs, with particular reference to feed
& fodder production and implement an intensive, breeding programme for milk
animals to increase milk production.
4) Imparting training for developing human resource at rural level for effective
leadership. Management skill and improvement of service to rural milk
producers.
5) Running co-operative development cell to increase awareness and to herald
active women participation for better management of co-operatives and their
positive role in democratic setup.
101
3) Dairy Business & Animal Husbandry Training Centre -
From 1984, Dudh Sangh has started the training centre for its
members and employees. Training regarding the various aspects of dairy
business such as accounting, management, milk testing etc. is provided.
4) Preventive & clinical veterinary services -
A team of 45-trained veterinary graduates operating from 33 different
locations in the district is catering to the preventive farmers. Each veterinarian
looks after about 10 villages and provides these services round the clock at the
farmer’s doorsteps.
It also provides breeding services. Dudh sangh has established 240
artificial insemination centers in its operational area. All the necessary inputs to
these centers such as liquid nitrogen, semen, sheath, cryogenic containers are
made available by the Dudh sangh.
5) Milkotester -
In order to ensure high quality of raw milk received from the villages,
Dudh sangh has supplied Milko Testers to the village Dairy Co-operatives. The
milko Testers are electronically operated machines to determine the fat
percentage of the milk. The milk supplied by every individual milk producer is
tested before acceptance and the payment is made based on the quality of milk.
The Dudh Sangh gives the subsidy of Rs. 3000 /- per milkotester.
6) Fodder Development -
Availability of sufficient quantity of good and nutritious fodder is
essential prerequisite for sustained milk production milk. In view of this, a
team of four agricultural graduates with the assistance of five supervisors is
working under fodder development section of the union. Under this programme
seeds of improved fodder varieties are distributed at 25 % subsidized cost.
About 10 tones of folder seed are distributed annually.
7) HRD Programme -
Quality of the work put out by the individual staff member depends
upon his technical competency as well as his attitude towards working. These
courses are conducted at various levels from workers to managerial cadre.
102
5.2.4 Marketing Organization –
In 1988, Dudh sangh started liquid milk marketing in Mumabi.
Initially the sale was 16,000 LPD. To meet the requirements of different
customers four different varieties of milk, Viz Classic (Buffalo) milk, Cow milk,
Tonned milk & Double tonned milk are marketed in Kolhapur , Pune, Mumbai
and other parts of Western and Southern Maharashtra. In Mumbai the total sales
is 3,50,000 LPD and in rest of the areas sales is 1,10,000 LPD. Along with the
liquid milk, Gokul is involved in marketing of the Ghee, Shirkhand, Milk
Powder, Paneer, Butter and dahi.
Managing Director
Marketing Manager
Officers (3)
Clerks (26)
(Source: Kolhaupr Zilla Sahakari Dudh Utpadak Sangh Ltd., Kolhapur)
103
5.2.5 Product Policy -
Kolhapur Zilla Sahakari Dudh Sangh offers a variety of milk & milk
products.
Figure 5.2.2
PRODUCT MIX
Cooking Butter
Table Butter
(Source: Kolhaupr Zilla Sahakari Dudh Utpadak Sangh Ltd., Kolhapur)
104
is available in 100 gm and 500 gm carton. Cooking butter is available in 500 gm
carton. Lassi is available in 200 ml polythene bag. Dahi is available in 200 gm
and 400 gm packs.
Market area covered by Gokul is Kolhapur, Mumbai, Pune, Sangli,
Satara, Ratnagiri, Kokan, Goa, and Belgaum. They export mainly butter & milk
powder to Middle East and Europe.
105
5.2.7 Promotional Policy -
As Gokul is the oldest dairy in the area, they have maintained the
good public relations. By providing the extension service to the milk producers,
they have earned goodwill in the market. In promotion mix, they depend more
on public relations & publicity. In Gokul they don’t have their advertising
department. They rely on the outside advertising agency for preparing the
advertisement messages and for media buying. The annual advertising budge is
Rs. 60/- Lakh. For setting advertising budget, they use affordability method.
For advertising their products, they use radio newspapers, local TV channels,
Point of purchase material, as the advertising medias. In sales promotion
strategy, they sponsor the local events. They place an advertisement in a
particular media depending upon the media availability. At the time of festivals,
generally they advertise the products.
106
Gokul conducts environmental analysis on regular basis. They
conduct customer surveys as well as distributor or retailer surveys to understand
the market situation. They have implemented marketing information system for
the use of decision-making purpose. Their major competitors include warana
milk, Sphurti Products, Yalgud milk, Amul. Their marketing strategy is based
on the customer satisfaction.
Gokul is involved in many extension activities and extending corporate social
Responsibility towards milk producers, employees and society as a whole.
Through its regular market surveys, they found the social changes are taking
place, viz. the customers are becoming more health and hygiene conscious, they
use various packaged milk products at the various occasions, and the
consumption for milk product has increased.
107
2003-04 1839 30.0 97.0 471.0 1856.0 2604.0
2004-05 1892 35.0 102.0 408.0 1597.0 2558.0
2005-06 1909 64.0 76.0 333.0 1623.0 2584.0
2006-07 1946 85.00 703.0 327.0 2077.0 2338.0
2007-08 1784 88.00 187.0 396.0 3221.00 3390.0
2008-09 1860 116.0 497.0 328.0 2705.0 2719.0
(Source: Kolhaupr Zilla Sahakari Dudh Utpadak Sangh Ltd., Kolhapur)
Production of milk shows the increasing trend with some exception in 2003-04 and
2004-05. The production of Shrikhand has declined from 142.65 M.T. in 1995-96 to
44.0 M.T. in 2001-02. From 2002-03 it again started increasing. Production of
table butter shows increasing trend with some fluctuations. Ghee production was
almost constant over a period. Milk powder production has increased over a period.
Butter production level was also constant to some extent.
108
2000-01 1617.93 42.4 34.3 211.7 457.9 1171.0 1637.08
2001-02 1571.40 55.5 23.6 289.9 1738.3 2564.0 1618.11
2002-03 1658.55 36.5 17.5 429.2 2943.1 3440.0 1727.22
2003-04 1806 30.0 89.00 471.0 1069.0 1503.0 1837.62
2004-05 1811 32.0 100.00 399.00 1281.0 2910.0 1858.22
2005-06 1885 56.0 75.0 363.00 513.0 1235.0 1907.42
2006-07 2086 76.0 647.00 327.0 348.0 1262.0 2112.6
2007-08 2157 83.0 216.0 396.0 1247.0 1712.0 2193.54
2008-09 2256 110.0 517.0 328.0 1698.0 3059.0 2313.12
(Source: Kolhaupr Zilla Sahakari Dudh Utpadak Sangh Ltd., Kolhapur)
Sale of milk has shown an increasing trend with some fluctuations. Sales of
Shrikhand declined from 1996 to 2001 & again from 2002 it has increased with
some fluctuations. Sales of table butter vary over a period. Ghee Sales have
shown an increasing trend over a period. Sales of milk powder increased from
1996 to 2009. Sales of butter have also increased with some variations over a
period.
109
5.2.11 Promotional Expenditure –
Annual promotional expenditure of Gokul from the year 1991 to 2009 is as follows.
Table 5.2.7 Annual Promotional Expenditure
Table 5.2.7 shows that promotional expenditure has increased from 1991 to 2006.
110
5.3 Warana Sahkari Dudh Utpadak Prakriya Sangh Ltd; Warana
Nagar
5.3.1 Introduction -
111
5.3.3 Extension Activities –
112
Figure 5.3.1
Marketing Organisation Structure
Board of Directors
Chairman
Managing Director
[1] Milk - Warana Dairy Produces standarsised, pasteurised milk & they sell it in
polythene packages in two sizes i.e. 500ml & 1 liter.
113
available in 50gm, 100gm, 250gm, 500gm and 1kg cup. Mango Shrikhand is
available in 100gm, 200gm cup & 500gm polythene packs.
[3] Tetra Pack Milk - Tonned milk and double tonned milk is available in one-
liter tetra pack. The milk is sterilised at high temperature and packed in tetra pack,
which can be stored for 120 days without refrigeration until opened.
[4] Milk Powder - Warana Dairy produces two types of milk powder viz. Skim
milk powder and full cream milk powder. It is available in 100gm, 500gm, 1 kg
polypacks and 25 kg in craft paper bag with inner polythene bag.
[5] Ghee - Ghee is available in two varieties i.e. buffalo ghee and cow ghee
which is, available in 200ml, 500ml, 1 liter polypack, 1 liter plastic jar, 1 liter and
15 liter Tin and 200ml and 500ml Box packing.
[6] Table butter - Table butter is available in 100gm, 500gm pack and 9.1 gm
chiplet.
[8] Cheese – Cheese is available in two varieties mozerella cheese & processed
cheese. It is available in 100gm, 200gm, 500gm and 1 kg polypacks.
[11] Flavoured Milk – Flavoured milk is available in four varieties viz. Chocolate,
Butter-skotch, Ice-cream soda and milk masala are sale in 200 ml bottle.
114
5.3.5 Price Policy –
Warana Dairy follows cost based pricing policy. The total cost is calculated
& certain profit margin us added to arrive at a price, which is again, depends upon
competition. Warana Dairy do not use price as a promotional tool, if competitors
lowers its price structure, they believes that customers will purchase quality
products.
The prices of different products are as follows –
115
Ghee 1 lit. tin 156
½ lit. tin 73
15 lit. tin 2160
200 ml. Poly Pack 30
500 ml. Poly Pack 68
Lassi 200 ml. Poly Bag 5
Process Cheese 100 gram Poly pack 15
200 gram Poly pack 30
500 gram Poly pack 74
Table Butter 100 gram packet 13
500 gram packet 62
(Source: Warana Sahkari Dudh Utpadak Prakriya Sangh Ltd; Warana Nagar,
Kolhapur.)
116
markets, they use tetra pack milk. As they have an active marketing department,
they conduct environmental analysis through its sales representatives. They have
developed Marketing Information system, which collects information from all the
sources, provides it to the marketing manager. They are aware about their
competitor’s products. Their major competitors are Chitale Dairy, Sphurti products,
Gokul Dairy and Amul Dairy. The thrust of their marketing strategy is customer
satisfaction. Their future plan is to start Warana Dairy and Agro Industries a
multistate union for milk collection.
Distributor Consumer
Retailer
Consumer
(Source: Warana Sahkari Dudh Utpadak Prakriya Sangh Ltd; Warana Nagar,
Kolhapur.)
117
In Mumbai Warana Dairy have their own depot. The milk and milk
products are transported in insulated vans and packed in the Mumbai depot. From
there it goes through the distributor and retailers to the customers. In local area, they
distribute milk and milk products through retailers. In other areas such as Sangli,
Ichalkaranji, Miraj, Pune, Aurangabad, Jalgao, they send the products to the
distributor. Distributor gives it to the retailes and retailers distribute the products to
final customers.
Warana Dairy has insulated vans for delivery of milk & milk
products, which they take on, hire basis.
The number of delivery vehicles is as follows-
Along with these vehicles they have their own two small vehicles
which are used to distribute products in local areas. In addition, they have 12
insulated tankers, which are used for the distribution of milk. The cost of
distribution of milk at local level is 24 paisa / liter & it varies depending upon the
distance. On average, the cost of distribution of milk products is Rs. 1.50 per kg.
They have seven retail outlets. One retail outlet is situated in
Kolhapur, 4 retail outlets are in Mumbai and 2 retail outlets are in Ichalkaranji.
They provide point of purchase material such as boards, in shop
material to the retailers, to promote the products. Their wholesale buyers include the
other dairy units located in Hyderabad, which purchase skim Milk Powder, and
butter in bulk. In addition, they export their products in Gulf countries like Kuwait,
118
Saudi Arabia & Sharjah, African Countries, Bangladesh and China. Now they are
trying to export the milk products to US, UK, Russia, South Africa & Bahrain.
Mainly they export Skim Milk Powder, full cream milk powder and tetra pack milk,
Ghee, Cream. In 2007-08 they exported the products worth Rs. 35,75,000. Their
exports amount for 7-8 per cent of total sales. They also supply to the Indian army
through its Misamari and Tejpur depots, which are located in Assam. They supply
tetra pack milk, ghee and milk powder to Indian army.
(Source: Warana Sahkari Dudh Utpadak Prakriya Sangh Ltd; Warana Nagar,
Kolhapur.)
119
Graph 5.3.1 Contribution of each product to sales
Table 5.3.3 shows the sales of milk and milk products. Sales of milk as well as
milk products ghee, shrikhand, milk powder, lassi, dahi, butter, cheese, and paneer
has increased over the years from 1991 to 2008-09. Butter has introduced in market
in 1993-94. Manufacturing of cheese has started in 1996-97. Dahi production started
in 2000-01. Panneer production started in 2001-02. All the products are having the
up ward demand.
120
6 1996-97 4,070,000
7 1997-98 4,300,000
8 1998-99 4,700,000
9 1999-2000 5,100,000
10 2000-01 5,800,000
11 2001-02 6,420,000
12 2002-03 8,170,000
13 2003-04 9,630,000
14 2004-05 11,000,000
15 2005-06 11,350,000
16 2006-07 12,000,000
17 2007-08 13,000,000
18 2008-09 14,100,000
(Source: Warana Sahkari Dudh Utpadak Prakriya Sangh Ltd; Warana Nagar,
Kolhapur.)
Table 5.3.4 shows that promotional expenditure has shown an increasing trend from
the year 1991 to 2009.
121
5.4 Shri Hanuman Sahakari Dudh Vyavasaik and Krushipurak
Sewa Sanstha Ltd., Yalgud, Kolhapur
5.4.1 Introduction -
Shri Hanuman Sahakari Dudh Vyavasaik and Krushipurak Sewa Sanstha Ltd. was
established on 14th July 1967 primarily to collect milk from milk producers and to
supply milk to the government milk scheme. Its main objective is to aid and provide
assets in the form of milch animals to farmers and landless laborers to undertake
Dairy activities and to raise their standard of living in particular and of the village
population in general & to improve dairy industry and to increase milk production.
Currently 50 primary milk societies supply milk to Shri Hanuman
Sahakari Dudh Vyavasaik and Krushipurak Seva Sanstha Ltd; Popularly known as
Yalgud. 6000 to 7000 liters of milk is collected from these 50 societies. There are
total 797 members of the society. Milk procured by Yalgud is supplied to Kolhapur
Zilla Sahakari Dudh Utpadak sangh Ltd; (Gokul) as Yalgud is a primary society of
the Gokul. The 50 primary societies are located nearby Yalgud. They distribute
milk & milk products in Kolhapur, Ichalkaranji, Miraj, Nipani, Jat and
Kawathemahankal. Daily milk collection has increased from 5585 liters in 2003-04
to 7395 liters in 2008-09.
122
j) Shri Shetakari Sahakari Dudh Utpadak Sangh Ltd; Nipani – Chikodi.
k) Sahakar Ratna Vasantrao Mohite Krishi Abhivrudhi Sangh Ltd; Nipani
l) Sahakar Maharshi Tatyso Mohite Vikas Sewa Society Ltd; Yalgud
Yalgud has received financial assistance of Rs. 40.60 lakh for dairy
development from the National Co-operative Development Corporation, New Delhi.
In addition, they have received Rs. 20 lakhs as subsidy and concession in sales tax
for 6 years from Western Maharashtra Development Corporation, Pune under
special incentive scheme 1988 of Maharashtra. It has got food safety management
system certificate ISO 22000: 2005 for dairy products.
Chairman
Managing Director
Secretary
Marketing Marketing
Executives Executive
(Source: Shri Hanuman Sahakari Dudh Vyavasaik and Krushipurak Sewa Sanstha
Ltd., Yalgud, Kolhapur)
123
Marketing Policies -
Dairy products manufactured by the Yalgud are marketed in Kolhapur,
Sangli, Satara, Ratnagiri and Belgaum District through their retail outlets or through
the agency system.
124
* Chakka * Orange Bar
* Paneer
* Milk powder
* Lassi
* Dahi
(Source: Shri Hanuman Sahakari Dudh Vyavasaik and Krushipurak Sewa Sanstha
Ltd., Yalgud, Kolhapur)
125
5.4.6 Promotion Policy – Mainly they use advertisement and personal selling for
promotion of the milk & milk products. As they directly sell the products to the
retailers, the delivery person performs the task of personal selling. In addition, the
retailers work as the sales people. They use print media i.e. local newspaper and
magazine for advertising their products. The advertisements are prepared by the
advertising agency. There is no pre-determined advertising budget; they spend as per
the opinion of the management.
5.4.7 Distribution Policy - Yalgud mainly distributes milk & milk products in
Kolhapur, Miraj, Sangli, Satara, Ratnagiri, Nipani, and Belgaum. They market the
products directly through retailers. They have 224 retailers all over the market area.
They have their own 12 retail outlets in Kolhapur, Sangli and Nipani viz. Central
Bus stand, Dabholkar Corner, Bhaskar Plaza, Shahupuri, Takala Road, SIBER Road,
Shivaji Stadium, Tarabai Road, Shahu Naka, Kagal Bus stand etc.
The retailers place an order in Kolhapur Head Office and then these are
forwarded through internet to Yalgud Plant. Then the orders are directly delivered to
the retailers with the help of 17 delivery vehicles. They supply products regularly to
retailers through 10 regular routes in Kolhapur. In other areas through 7 routes on
alternate days.
They provide some small hoardings to the retailers. They supply fresh and
quality products to retailers in time. Yalgud do not export the milk and milk
products.
Yalgud do not have Marketing Information System. They conduct some
opinion surveys of their regular customers to assess their requirement. Their major
competitors are Gokul, Sphurti, and unorganised dairies. They are aware about their
competitor’s product and always compare their own products with competitor
products for quality improvement.
126
5.4.8 Sale of Milk and Milk Products –
Sale of different milk and milk products of Yalgud from 1991 to 2009 is given in the following table.
5.4.1 Sale of milk and milk products
Sr. 1991- 1999-
No. Products 92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
1 Shrikhand (kg) 32141 32123 53816 58102 69142 74680 61764 55206 63349 73016 61840 63202 60766 63328 63852 69948 76489 91881
2 Amrakhand (kg) - - - - - - 6707 9947 8751 13491 9780 12233 16940 19145 19674 22758 27510 35051
3 Basundi (kg) 15048 14322 21454 22604 22038 25616 31810 38004 41605 49601 41430 39442 36390 36919 42297 47228 5119 59118
4 Pedha (kg) 18008 13202 23504 30405 30634 33167 35023 39378 46456 44612 35391 29934 29559 30988 31717 37385 30541 31688
5 Khoa Burfi (kg) 1024 546 854 1184 795 1601 1041 1067 1154 1155 769 784 933 972 1109 1405 1324 1357
6 Mango Burfi (kg) 1072 530 1016 901 955 959 665 649 740 745 506 632 748 793 952 1189 1020 1289
7 Kunda (kg) 696 383 565 543 551 613 477 366 495 250 52 - - - - - - -
8 Milk Powder
(kg) - - - - 8085 12611 27271 6769 29959 20124 24578 25808 18796 13718 15544 23743 3634 -
9 Cream (kg) - - - - 1120 31428 63237 42481 101545 36803 33111 27436 37242 39825 34576 45303 25627 -
10 Loni (kg) - 1500 - - - 8249 20237 1300 18891 10126 14316 16304 15547 11915 13222 20699 3055 -
11 Modak (kg) - - 280 311 492 759 1365 1847 1901 1901 1754 1714 2063 1685 1636 1389 1407 1938
12 Ghee (kg) - 5510 9186 4247 7542 25301 36063 21477 43097 14461 19324 17007 15373 15517 15820 13490 15066 13042
13 Milk Mithai (kg) 149 181 - - - 127 - - - - - - - - - - - -
14 Khawa (kg) 61 - 173 - 325 3612 3918 3398 - - - - - - - - - -
15 Chakka (kg) 41 - - - 284 1440 2222 2134 - - - 35 35 - - - - -
16 Malai Paneer
(kg) - - - - - - - - - - - - 531 1174 2018 2430 2607 2945
Toatal (kg) 68240 68297 110848 118297 141963 220163 291800 224023 357943 266285 242851 234530 234923 235979 242417 280967 239399 238309
17 Sumadhur Milk
(200ml) lit. 68110 43463 68892 76325 92046 94383 85574 82671 88833 90363 71590 68643 78137 81955 83744 89208 96774 97852
18 Lassi (200ml) lit. - - - - - - 2990 30404 40383 70371 35197 39309 52232 54818 57352 66638 63076 65175
127
19 Scheme milk
(lit.) - - - - - 259315 594510 410775 865443 307554 272690 226609 308415 275455 299071 423502 256574 -
Total conversion 68110 43463 68892 76325 92046 353698 683074 523850 994659 468288 379477 334561 438784 412228 440467 579348 416424 163027
(lit)
20 Pasteirised
milk(lit.) 957740 1250146 1653349 1513776 1467988 2071323 1806850 1784678 1450018 1191847 1078862 1016207 1274938 1377489 1539493 1408740 1407641 1615293
21 Tonned milk (lit.) - - - - - - - 562710 694234 264964 23480 2968 22418 94904 29822 - - -
22 Double Tonned
milk (lit) - - - - - 397173 1785745 1457731 1324494 732680 83129 103453 93402 - - - - -
23 Dahi (lit) - - - - - - - - - - - - - 9789 16291 14368 15507 20043
Total (lit.) 957740 1250146 1653349 1513776 1467988 2468496 3592595 3805119 3468746 2189491 1185471 1122628 1390758 1482182 1585606 1423108 1423148 1635336
24 Ice cream (lit) - - - 6166 13919 13004 14597 8927 9125 5230 5308 7223 1953 - - 107 - -
Total per Annum 1E+06 1361906 1833089 1714564 1715916 3055361 4582066 4561919 4830473 2929294 1813107 1698942 2066418 2130389 2268190 2.3E+07 2078971 2036672
128
From the table 5.4.1, it can be inferred that sales of milk and all milk products has
gradually increased from 2001-02 to 2008-09.
1990-91 28,088
1991-92 34,861
1992-93 61,954
1993-94 1,63,810
1994-95 1,47,294
1995-96 2,43,070
1996-97 2,73,368
1997-98 2,17,630
1998-99 2,40,626
129
1999-2000 1,89,134
2000-01 2,10,748
2001-02 2,38,375
2002-03 2,42,394
2003-04 2,69,045
2004-05 3,53,917
2005-06 2,23,309
2006-07 2,21,068
2007-08 1,46,539
2008-09 3,03,734
(Source: Shri Hanuman Sahakari Dudh Vyavasaik and Krushipurak Sewa Sanstha
Ltd., Yalgud, Kolhapur)
Table 5.4.2 shows that the promotional budget has grown steadily from 1991-92 to
2008- 09.
130
5.5 Bharat Dairy-
5.5.1 Introduction –
5.5.2 Procurement –
Bharat Dairy procures milk mainly from Karnataka State. Some quantity of
milk is procured from the villages located on the Karnataka- Maharashtra boundary
in Maharashtra state. They have two chilling centers one is at Nasalapur and other is
at Khemlapur located in Karnataka state. They also collect milk from four milk
cooperative societies. Everyday 40,000-liter milk is collected from Karnataka and
10,000-liter milk is collected from Maharashtra.
For milk procurement, they offer different payment rates to the milk producers
depending upon flush and lean season. Regular rate for milk containing 6.0 percent
fat is Rs. 14.20. Rate for milk containing 6.5 percent fat is Rs.15.20. The cost of
chilling is Rs. 2.00 per liter. Thus, their total cost of milk procurement is Rs. 17.20.
131
Organisation Structure –
This is a partnership firm.
Figure 5.5.1 Organisation Structure
FOUR PARTNERS
GENERAL MANAGER
MANAGER
LABOURER
MD Marketing
132
5.5.3 Product Policy –
Bharat Dairy believes in quality products and innovation. Their product mix consists
of different product lines such as milk, skim milk powder, curd, shrikhand, basundi,
paneer, butter/ ghee. They market their products under the brand name ‘Sphurti’.
Under each product line, they offer various products as follows –
1) Milk – Milk is available in 500 ml and 1-liter packages. They offer toned
milk, double toned milk and standardized milk. Both cow milk and buffalo
milk is available. Milk processing capacity is 50,000 to 55,000 liter per day.
2) Skim Milk Powder – In flush period when milk supply is more, at that time
milk is converted into SMP. Depending on the excess milk, availability 200
to 700-ton SMP is produced per month. Generally, SMP is procured from the
other dairy unit as per the requirements.
3) Curd – 2000 to 3000 liter curd is produced every day. Curd is having 15 days
shelf life with refrigeration. Bharat Dairy is the first in Maharashtra to
market curd in packed form after Amul. At the beginning, curd is sold in
loose form, then it is sold in polythene bags and now cups are used to pack
the curd. For curd market, they are the market leader.
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5.5.4 Price Policy –
Price of the milk is decided by the association of milk unions. They offer the milk
products at competitive rates. They use marginal costing and reverse costing for
calculating the prices for the products. They do not use price as a promotional tool.
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5.5.7 Annual Sales and promotional expenditure of the Bharat Dairy –
Annual sales and promotional expenditure of Bharat Dairy from 1991 to 2010 are
given below.
Table 5.5.1 Annual Sales and promotional expenditure
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Graph 5.5.1 Annual Sales and promotional expenditure
The sales figure shows the increasing trend mainly because of the consistent quality
products and marketing. Every year they have made expenditure of 6 to 7 percent of
last year sales on promotional activities. Therefore, it also shows the increasing
trend.
Bharat Dairy conducts market survey like consumer survey, retailer’s survey
through their sales representatives. Moreover, they use the collected information for
marketing decision making. Their main competitor is Chitale Dairy, Pune. They
always keep the product quality high to beat the competitors. Their marketing
strategy relies on customer satisfaction. According to them, there are social
developments in the target market. The customers prefer packaged and branded
products.
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5.6 Sahyadri Dudh Utpadak Sangh Ltd; Shinoli, Chandgad.
5.6.1 Introduction -
Sahyadri Dudh Utpadak Sangh Ltd; was established in the year 2000. The
founder Chairman, Mr. Dajiba Desai has started the dudh sangh at the Maharashtra –
Karnataka boundary only for the benefit of the milk producers situated in boundary
area. Because of Maharashtra – Karnataka border conflict, Karnataka Milk
Federation do not provide milk procurement facilities in the border area. For the
dairy units situated in Maharashtra, specifically in Kolhapur, the cost of milk
procurement in this area is more. Therefore, Sahyadri Dudh Sangh started procuring
milk from these areas. The cost of milk procurement is Rs. 17.70 per liter with
addition of 65 paisa as management charges per liter for 6.0 to 9.0 percent fat
content. Mainly, the raw milk is collected from the 282 milk societies situated in
Belgaum border area. The milk pasteurization capacity was 500 lit / day at the
beginning. Currently pasteurization capacity is 3000 lit./day.
Because of the natural climatic conditions the fat percent of milk is more (i.e.
7.5 to 9%) than the other areas. Therefore, the private dairy units such as Chitale
dairy, Pune Maskate dairy, Hyderabad and other dairies from Mumbai purchase
milk from the Sahyadri dudh Sangh to manufacture the various milk products. Their
market area covers Belgaum, Goa, Kankawali, Sawantwadi.
Figure 5.6.1 Oraganisation Structure –
Board of Directors
Chairman
Managing Director
General Manager
General Manager
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As the milk handling capacity is less, one dairy manager looks after all the
production & quality control procedures. Marketing Officer works directly under
general manager, as they do not have separate marketing department. Marketing
Officer visits to the various distributors and retailers to market the milk and milk
products. Sahyadri Dudh Sangh does not employ marketing information system and
they do not conduct environmental analysis. The dairy unit is well aware about its
competitors. Their major competitors are Karnataka Milk Federation, Hatson and
Aditya Milk.
Sadhyadri Dudh Sangh provides extension activities to the milk producers.
They provide financial assistance to milk producers through Sahyadri Co-operative
Society. In addition, they provide veterinary services for the cattle. They provide the
employment opportunities to the people residing in the border area.
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Prices of the milk & milk products –
Milk - Rs. 30 per liter
Ghee - Rs. 200 per kg
Shrikhand - Rs. 85 per kg
(Source: Sahyadri Dudh Utpadak Sangh Ltd; Shinoli, Chandgad.)
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5.6.6 Annual Sales of Milk & Milk Products –
Milk and milk products annual sale of Sahyadri Dairy from the year 2001 to 2009 is
given in the following table.
Year Sale of Milk (Rs.) Sale of Milk products (Rs.) Total Sales (Rs.)
2001-02 2,25,32,362 10,82,560 23614922
2002-03 6,55,25,668 49,950 65575618
2003-04 9,68,95,904 18,15,335 98711239
2004-05 10,39,35,045 -- 103935045
2005-06 10,47,97,384 10,469 104807853
2006-07 10,83,67,110 10,660 108377770
2007-08 12,26,81,615 -- 122681615
2008-09 13,51,23,399 5,89,673 135713072
Table 5.6.1 shows that sales of liquid milk has increased steadily over a
period. This pattern is not found in milk products sale. The main reason is the
irregularity in availability of raw milk and more demand for the liquid milk.
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5.6.7 Annual Promotional Expenditure
Milk and milk products annual promotional expenditure of Sahyadri Dairy from the
year 2001 to 2009 is given in the following table.
Table 5.6.2 Annual Promotional Expenditure
Year Promotional Expenditure (Rs.)
2001-02 77,985
2002-03 73,436
2003-04 88,925
2004-05 25,841
2005-06 90,753
2006-07 91,308
2007-08 19,712
2008-09 17,190
(Source: Sahyadri Dudh Utpadak Sangh Ltd; Shinoli, Chandgad.)
Table 5.6.2 shows that promotional expenditure has shown increasing trend
except in the year 2004-05. In year 2007-08 & 2008-09, the promotional
expenditure was low because of the lower profit margin.
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5.7 Conclusion –
The surveyed dairy organizations focus on the pasteurization of milk
products. Their sale is concentrated on the sale of liquid milk. These dairy
organizations mainly produce the milk products like ghee, shrikhand, curd,
butter, lassi, milk powder and paneer. They offer milk and milk products at
competitive prices. There is a very little vaiation in the prices of the
products. The dairy organizations distribute the milk and milk products with
the help of the distributors and retailers. The main market area is the
Kolhapur, Sangli, Satara, Pune, Mumbai, Belgaum, Goa and Kokan. These
dairy organizations make the use of local television, radio channels, and
local news papers for advertising their products.
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