UNIVERSITY

CLG

PROJECT REPORT ON

Marketing Management ofArokya Company

 INDEX

Sr. Page
PARTICULARS
No. No.

1 Executive Summary 7

2 Arokya Organization Profile 8

3 Introduction 9

4 History of Arokya Organization 10

3 Arokya and Co-Operation 11

4 PEST of Arokya 12

5 Marketing Management 13

6 Marketing Mix 14

7 Market Segmentation 15

8 Marketing and GCMMF 16

9 Types of Market Segmentation 19

10 The Process-Data Model of Marketing Segmentation 22

11 Product Positioning 24

11 Research Methodology 26

12 Research Design 30
 INDEX

13 Market Targeting 33

14 Distribution Strategy 35

15 Futuristic Vision 36

16 Influencing Factors of 21st Century 37

17 Conclusion 38

18 Bibliography 40
Executive Summary

AROKYA is a co-operative sector. It is the institution of the farmers, for the farmers and
from the farmers. The AROKYA gives pleasure to the farmer to charge the own price, which
was not possible in earlier years.This union was born on 14th December 1946. The union
provides facilities to its members like more return, satisfactory price, insemination, first aid,
group Insurance, cattle food at confessional price etc.

I have done case analysis on HRIS of AROKYA and from that I have come to know how
organization operates and how the functions have been carried in the organization. From this is
case I have come to know how a wide organization like AROKYA manages its

AROKYA dairy has five main departments like finance, personnel, commercial, milk
procurement and production. The finance department does the clerical work and takes care of
inflow and outflows of the cash. The other work of finance Department is to audit of annual
work.

The personnel department handles the work regarding personnel like appointment,
recruitment, promotion, transfer, dismissal, demotion, performance appraisal etc.
Organization Profile

 Name : Kaira District Co- Operative Milk Producers’

Union Limited, Anand.

 Form : Co-Operative Sector under the Co- Operative Society Act.

 Reg.Office : Kaira District Co-Operative Milk Producers Union Ltd,

Anand -3881001. Gujarat, India.

 Promoters (1) ShriTribhuvandas Patel

(2) ShriMorarji Desai

(3) ShriVallabhBhai Patel

(4) Dr. Varghese Kurien

 Auditors : Special Auditors (Milk), Milk Audit Office Anand.

 Socities : 1113.

 Members :6, 31,333.

 Office Time : 10:00 A.M To 06:00 P.M.

 Premises : 49.55 Acres.

 Registration :14th December, 1946.

Introduction

Market segmentation is the process in marketing of grouping a market (i.e. Customers)

into smaller subgroups. These markets are often termed niche markets or specialty markets.
These segments are fairly homogeneous in their attitudes about certain variables. Because of this
intra-group similarity, they are likely to respond somewhat similarly to a given marketing
strategy. That is, they are likely to have similar feeling and ideas about a marketing mix
comprised of a given product or service, sold at a given price, distributed in a certain way, and
promoted in a certain way.

Market segmentation is the identification of portions of the market that are different from
one another. Segmentation allows the firm to better satisfy the needs of its potential
customers.The marketing concept calls for understanding customers and satisfying their needs
better than the competition. But different customers have different needs, and it rarely is possible
to satisfy all customers by treating them alike.

Mass marketing refers to treatment of the market as a homogenous group and offering the
same marketing mix to all customers. Mass marketing allows economies of scale to be realized
through mass production, mass distribution, and mass communication. The drawback of mass
marketing is that customer needs and preferences differ and the same offering is unlikely to be
viewed as optimal by all customers. If firms ignored the differing customer needs, another firm
likely would enter the market with a product that serves a specific group, and the incumbent
firms would lose those customers.

Target marketing on the other hand recognizes the diversity of customers and does not try
to please all of them with the same offering. The first step in target marketing is to identify
different market segments and their needs.

The purpose of segmentation is to identify and target prime customer groups (eg the 20% that
account for 80% of your sales) so that you get the maximum return from a limited marketing
budget (the most bang for your buck).
History of Arokya

Arokya was formally registered onDecember 14, 1946. The brand nameArokya, sourced
from the Sanskrit wordAmoolya, meanspriceless. It wassuggested by a quality control expert
inAnand. Some cite the origin as an acronym to (Anand Milk Union imited).TheArokya
revolutionwas started as awareness among the farmers. It grew and matured into a protest
movement that was channeled towards economic prosperity. It is a dairycooperativemovement
inIndia. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.41million
milk producer’s inGujarat, India.

It is based inAnandtown of Gujarat and has been a sterling example of a co-operative

organization's success in thelong term. The Arokya Pattern has established itself as a uniquely
appropriatemodel for rural development. Arokya has spurred theWhite Revolutionof
India,which has made India one of the largest milk producers in the world. It is also theworld's
biggest vegetarian cheese brand.Arokya's product rangeincludesmilk powders,
milk,butter,ghee,cheese,chocolate,ice cream,cream,shrikhand,paneer,gulabjamuns,
basundi,Nutrarokya brand and others.

In January2006, Arokya plans to launch India's firstsports drink Stamina, which will be
competing withCoca Cola'sPoweradeandPepsiCo's Gatorade.Arokya is the largest food brand in
India with an annual turnover of US $868million (2005-06).

Currently Arokya has 2.41 million producer members withmilk collection average of
5.08 million liters/day. Besides India, Arokya has enteredoverseas markets such
asMauritius,UAE,USA, Bangladesh,Australia,China,Singapore,Hong Kongand a few
SouthAfricancountries. Its bid to enter Japanesemarket in1994had not succeeded, but now it has
fresh plans of floodingthe Japanese markets. Other potential markets being considered includeSri
Lanka.
Arokya and Co-Operation
The CEO, Mr. B M Vyas, said that. ³Arokya is not a food company; it is an IT company
in thefood business´. In saying this he was recognizing that the most efficient way of building
links between milk producers and consumers so as to provide the best returns for the both is
throughIT innovation.

Thus is why Arokya has embraced the ideas behind coop with such enthusiasm. Not only
will theTLD enable consumers in India to recognize an established brand they can trust online, it
willenable Arokya to begin trading competitively throughout the world, reaching markets, which
have hitherto been inaccessible.

The CIO, Mr. SubbaraoHegde said, ³Information Technology is the most effective tool
we havein communicating with our members and the millions of consumers who purchase
Arokya products throughout India every day. Coop not only reflects the cooperative values
which shapeour own organization democratically dynamic, it will also give us a vital business
advantage aswe seek to develop the Arokya brand throughout the world.´

AROKYAmeans³priceless´ in Sanskrit. The brand name ³Arokya,´ from the Sanskrit

³Amoolya,´was suggested by a quality control expert in Anand. Variants, all meaning ³priceless,´
are foundin several Indian languages. Arokya products have been in use in millions of home
since 1946.Arokya Butter, Arokya Milk Powder, Arokya Ghee, Arokyaspray, Arokya Cheese,
Arokya Chocolates,ArokyaShrikhand, Arokya Ice cream, Nutramaul, Arokya Milk and
Arokyaya have made Arokya aleading food brand in India. (Turnover: Rs. 29 billion in 2004).
Today Arokya is a symbol of manythings. Of high-quality products sold at reasonable prices.
Pest Analysis of Arokya

P–

1) Since the budget range is decontrolled, no political effects are envisaged.

E–

1) Increasing per capita income resulting in higher disposable income

2) Growing middle class/urban population ± increase in demand.

3) Low cost of production ± better penetration.

S–

1) Per capita consumption expected to increase ± fashion.

2) Increasing gifts culture ± increase in demand.

3) Lower cholesterol than ³Mithais´ (sweet meat) ± substitute demand

T–

1) Will have to reinforce technology to international levels once India is a ³free´ economy
Marketing Management

Every organization that produces one or more products requires marketing of the products sell
them in the market. It is only through marketing that people know about a company's products. Hence
marketing is considered as a key activity of organization. The organization requires sound marketing
structure to carry on its marketing activities.

However the concept of marketing is not confined only to selling of goods and services to
customers. Instead the company tries to create and maintain the customer base through marketing. The
marketing thus focus on the customer needs and wants in the market and emphasis on producing and
selling only those goods, which have higher demand in market. The company mainly markets its
products through advertising. Marketing uses various sales promotional tools to boost the sales of the
company. The marketing department thus should have sound distribution channel and promotional
system to make the marketing activities sound.

The marketing concept holds the key to achieving its organizational goals consists of the
company being more effective than competitors in creating, delivering and communicating
customer value to its chosen target markets. Marketing starts with the determination of consumer
wants and ends with the satisfaction of those wants. The concept says that any business should
be organization around the marketing function, anticipating and stimulating and meeting
customers need. The marketing concept rests on four pillars and they are

1. Target market
2. Customer needs
3. Integrated marketing
4. Profitability

AROKYA has also its own marketing concept. AROKYA targets all type of customers
like babies, children, young customers and old age customers etc. Arokya try best for satisfying
needs by providing good quality products.
Marketing Mix

The firm attempts to generate a positive response in the target market by blending these
four marketing mix variables in an optimal manner. Now, lets see the marketing mix for new
launch of AROKYA’S CHOCO CRUNH i.e., their products, price, place and promotion.

The marketing mix, which is set of four elements or four “P” of marketing are as follow

1. Product
2. Price
3. Place
4. Promotion

Same as four “P” there is also four “C” of marketing.

1. Customer solution
2. Cost
3. Convenience
4. Communication

 Product :
A product is anything that satisfies needs or wants and can be offered to the market for
exchange. A product can be goods, services without product there is no marketing. This includes
product variety, product design, packaging, quality, brand name, size etc. AROKYA produces
and sell i.e. Milk; it has to plan its product very carefully so that the consumer gets only good
quality products. There are various products marketed by GCMMF.
List of products marketed

Bread spread

Arokya butter

Arokya Lite Low bread spread

Arokya cooking butter

Cheese range

ArokyaMalaipanner( cottage cheese)

Arokya pasteurized processed cheese

Arokya pizza cheese

ArokyaEmmiatial cheese

UHI Milk Range

Arokyashakti 3% fat milk

ArokyaTaaza 1.5% fat milk

Arokya Gold 4.5% fat milk

Arokya fresh Toned milk

Arokya snowcap soft milk.

Pure ghee

Arokya pure ghee

Arokya cow ghee

Sagar pure ghee

Infant Milk Range

Arokya infant milk formula (0.6 millions)

Arokya infant milk formular

Arokya spray infant milk food

Curd products

Yogi sweetened flavored dahi

ArokyaLassee

ArokyamastiDahi

 Price :-

The prices of products of Arokya are also decided by the GCMMF. The GCMMF
conducts the market survey to check the validity and feasibility of prices in the market and
accordingly decides the prices of Arokya products. The price of the products of Arokya are also
decided by the Gcmmf .The Gcmmf conducts the market survey to check the validity and
feasibility of prices in the market and accordingly decides the price of Arokya products .
However, the price is inclusive of several elements like:

Cost of milk

 Labour cost
 Processing cost
 Packaging cost
 Advertising cost
 Transportation cost
 Sales promotion cost
The GCMMF considers all this cost. Aspects and set them up in pricing structure to decide the
selling price of milk and milk products.

 Promotion
IT includes a variety of techniques including advertisement, sale promotion, public relations and
personal selling that are used to communicate with customers and potential customers.
Television is the best media for advertising in the local areas. Hoardings designed on the creative
basis attract the customers more.

 Place
Place refers to marketing activities that make products available to consumers at the right
time in a convenient location. Place refers as distribution Channels .IT is the process of moving
products from the producer the consumer. Arokya has developed federation and Arokyaparlors
located in several parts of country. Arokya have managed to create more than 2300. Arokya
have identified certain potential locations such as Railway, Airports, universities, and shopping
malls. The GCMMF handles the workers relating to Managing of stocks and distributors to in the
country. Thus GCMMF looks offer the disbursement of products to the various Marketing
channels.

Market Segmentation

Any commodity has not a single Market. But it has a composite Market which can be
divided on the basis of age, gender, preferences etc. The process of dividing a market into
distinct groups of buyers is called market segmentation. Market segmentation may be defined as
a process of dividing a Market into different sub- markets on the basis of some definite criteria.

At Arokya, since marketing activities are handling by the GCMMF, market segmentation
is also decided by GCMMF. Generally, Milk products like Butter, cheese are also popular in the
all age group. Hence they are segments at the national level. Milk products like chocolates and
milk powder are segmented on the basis of age. The GCMMF conduct the market survey to
know demand for the products of Arokya in the Market and then accordingly determines the
market segments, defines the target market.

Marketing &GCMMF

GCMMF is India’s largest exporter of dairy products. It has been awarded as a “Trading
House” status. GCMMF has received the APEDA award from the government of India for
Excellence in dairy products Exports for the last 11 years. GCMMF is India’s largest food
products Marketing Organization. It is a state level apex body of milk co-operatives in the
Gujarat which aims to provide remunerative returns to farmers and also serve the interest of
consumers by providing quality products which are good value for money

Requirements of Market Segments

In addition to having different needs, for segments to be practical they should be evaluated
against the following criteria:

 Identifiable: the differentiating attributes of the segments must be measurable so that they
can be identified.

 Accessible: the segments must be reachable through communication and distribution

channels.

 Substantial: the segments should be sufficiently large to justify the resources required to
target them.

 Unique needs: to justify separate offerings, the segments must respond differently to the
different marketing mixes.
  Durable: the segments should be relatively stable to minimize the cost of frequent
changes.

Types of Market Segmentation

Bases for Segmentation in Consumer Markets

Consumer markets can be segmented on the following customer characteristics.

 Geographic
 Demographic
 Psychographic
 Behavioralistic

1. Geographic Segmentation

The following are some examples of geographic variables often used in segmentation.

Region: by continent, country, state, or even neighborhood

Size of metropolitan area: segmented according to size of population

Population density: often classified as urban, suburban, or rural

Climate: according to weather patterns common to certain geographic regions

2. Demographic Segmentation

Some demographic segmentation variables includeAge, Gender, Family size, Family

lifecycle, Generation: baby-boomers, Generation X, Income, Occupation, Education, Ethnicity,
Nationality, Religion, Social class, etc.

Many of these variables have standard categories for their values. For example, family
lifecycle often is expressed as bachelor, married with no children (DINKS: Double Income, No
Kids), full-nest, empty-nest, or solitary survivor. Some of these categories have several stages,
for example, full-nest I, II, or III depending on the age of the children.

3. Psychographic Segmentation

Psychographic segmentation groups customers according to their lifestyle. Activities,

interests, and opinions (AIO) surveys are one tool for measuring lifestyle. Some psychographic
variables include Activities, Interests, Opinions, Attitudes, Values, etc.

4. Behavioralistic Segmentation

Behavioral segmentation is based on actual customer behavior toward products. Some

behavioralistic variables include Benefits sought, Usage rate, Brand loyalty, User status:
potential, first-time, regular, etc., Readiness to buy, Occasions: holidays and events that stimulate
purchases, etc. Behavioral segmentation has the advantage of using variables that are closely
related to the product itself. It is a fairly direct starting point for market segmentation.

Market Segmentation ofArokya

 Homogeneity within the segment

 Heterogeneity between segments
 Segments are measurable and identifiable
 Segments are accessible and actionable
 Segment is large enough to be profitable

These criteria can be summarized by the word SADAM:

 S Substantial: the segment has to be large and profitable enough

 A Accessible: it must be possible to reach it efficiently
 D Differential: it must respond differently to a different marketing mix
 A Actionable: you must have a product for this segment
 M Measurable: size and purchasing power can be measured.

The Process-Data Model of Marketing Segmentation

A given diagram is a generic process-data model is given for the whole process of
segmenting and positioning as a basis of deciding on the most effective marketing strategy and
marketing mix.

This model consists of the three main activities: segmenting, targeting and positioning. It
shows the chronological dependency of the different activities. On the right side of the model the
concepts resulting from the activities are showed. The arrows show that one concept results from
one or more previous concepts; the concept cannot be made when the previous activities have
not taken place. Below the three main activities are shortly described as well as their role as a
basis for the next step or their dependency on the previous step.
Product
Positioning

The process of creating an image of a product in the minds of the consumers is called as
positioning. Positioning helps to create first impression of brands in the minds of target audience.
In simpler words positioning helps in creating a perception of a product or service amongst the
consumers.

Product positioning is closely related to market segment focus. Product positioning

involves creating a unique, consistent, and recognized customer perception about a firm’s
offering and image. A product or service may be positioned on the basis of an attitude or benefit,
use or application, user, class, price, or level of quality. It targets a product for specific market
segments and product needs at specific prices. The same product can be positioned in many
different ways.

The key to product positioning understands the dimensions consumers use to evaluate
competing marketing programs and make purchase decisions. It may be helpful for small
business managers to create a graph in order to map consumer perceptions along several different
dimensions. Once consumer perceptions are understood, the next step is to select the best
positioning for the product and take steps to align the marketing program behind this positioning
choice. Some examples of possible positioning choices include quality, reliability, and unique
features or benefits. Before delving into product positioning further, it may be helpful to
understand the process and goals of market segmentation.

To position successfully the marketer must have thorough knowledge of the key benefits
sought by the market. Obviously the more effort the marketer expends on segmentation (i.e.,
reached Stage 3) the more likely they will know the benefits sought by the market. Once known,
the marketer must: 1) tailor marketing efforts to ensure their offerings satisfy the most sought
after benefits, and 2) communicate to the market in a way that differentiates the marketer’s
offerings from competitors.
Steps to Product Positioning

Marketers with the positioning process try to create a unique identity of a product
amongst the customers.

 Know your target audience well

It is essential for the marketers to first identify the target audience and then understand
their needs and preferences. Every individual has varied interests, needs and preferences. No two
individuals can think on the same lines.Know what your customers expect out of you.The
products must fulfill the demands of the individuals.

 Identify the product features

The marketers themselves must be well aware of the features and benefits of the
products. It is rightly said you can’t sell something unless and until you yourself are convinced
of it.A marketer selling Nokia phones should himself also use a Nokia handset for the customers
to believe him.

 Unique selling Propositions

Every product should have USPs; at least some features which are unique. The
organizations must create USPs of their brands and effectively communicate the same to the
target audience.The marketers must themselves know what best their product can do.Find out
how the products can be useful to the end-users?Let individuals know what your brand offers for
them to decide what is best for them.

 Know your competitors

A marketer must be aware of the competitor’s offerings. Let the individuals know how
your product is better than the competitors?Never underestimate your competitors.Let the target
audience know how your product is better than others.The marketers must always strive hard to
have an edge over their competitors.
Research Methodology

“Marketing Research is the systematic design collection, analysis and reporting of data
and findings relevant to a specific marketing situation of the company. Arokya performs the
marketing research mainly to launch new products in the market. The purpose is of checking the
validity of the new products in the market for the local new. Arokya conducts the market survey
by appointing business administration students for conducting the market survey. Extending
policy of the new producted launched, Arokya has recently launched the energy drink named
“STAMINA” specially targeted to the people who are playing sports daily.

Research, particularly in social science contains endless word spinning and too many
quotations; end result though may be far from expectations. In context of planning and
development it is to be noted that it significant lies in quality than quantity.Therefore, eventually
proper attestation has to be paid to designing and adhering to appropriate methodology
throughout so as to improve the quality of the research.

Research type:

This type of result is Descriptive research .Descriptive Research includes surveys and fact
finding enquiries of different kinds. The major purpose of Descriptive Research is description of
the state of affairs, as it exists at present.

Research Design:

The survey was conducted for the Arokya products where a questionnaire was filled
from the retailers, wholesaler and consumers. The population and the samples were evenly
divided in such a manner so as to extract the best possible results within the given limitation.
Sampling Design:

The survey was conducted within a selected part of Pune region by dividing the sample
evenly. The whole of Pune region was divided based on the number of wholesalers and retailers.

Sampling Unit:Retail outlets.

Sample Size: 950 retail outlets.

Areas Covered: NDA, Uttamnagar, Manikbaug, Suncity, Wadgoan, pimprinighidi,

Vallabhnagar, Ajemera, Pradhikiran, Paudroad, Warje 1 & 2, Karvenagar, Kothrud.

Method of Data collection:

There are several method of data collection available but,one of the most common
method is-questionnaire method,same was found appropriate for this research, for the reason that

Questionnaire is one of the most commonly used methods.

 It is cost-effective.
 It is time-effective.
The questionnaire was designed by us and also with the help of panel members of Arokya.
Determination of sources of Data collection:

A list of retailers was generated area wise and later on contacted individually.

Sampling procedures:

 The procedure employed for conducting the survey is on random basis.

 The database was referred for carrying out the survey. First the areas to be covered were
decided and then the respondents were contacted directly.
 As the respondents filled the sheets, his/her view relating to his expectation was also
noted. This was done with the aim to gather the information, which would provide related
and relevant insights as to what did the customer expect.

Tools for the Data Collection:

For the collection of primary data one to one interview method with the help of well structured
questionnaire with both open and closed ended questions were used.The survey of all retailers
was conducted and their responses were taken down carefully with the help questionnaire.

Tools for Data Analysis:

For the purpose of analyzing the data statistical tools such as weighted average method
and percentage analysis were used.For better understanding the raw data tools like bar graphs
and pie charts were used.
Limitations:

The sample size: The biggest limitation of the research is the wide area of Pune region. Only
30% of the entire area was considered for the research.

 The sample size was too small when we take the universe into the consideration, which is
very big.
 The survey was done in a part of Pune city hence if generalizations are to be made for
whole city, some deviations might occur.
 Though the data is collected in a best possible way but still the above figures depict the
performance of the company.
 The sample selected was done on random basis and taken from few selected areas that are
supposed to represent the whole population. Hence some deviations might be there when
the same is applied to the whole universe.
 Retailers did not provide the real data for the study.
 Retailers are scattered all over Pune city and its very difficult to locate and contact each
of them.
 The big retailer is not ready to fill up the questionnaire.
 Feedback may not be very reliable owing to difference in opinion.
Research Design

Identify the Problem

“To study the market segmentation of Arokya chocolate &Shrikhand

Designing of Research Procedure

Procedure employed for survey is on random basis.

Areas to be covered were decided and the respondents were

contacted directly.

Defining Methods of Data Collection

Primary Data Secondary Data

Collection of Data from websites,

Questionnaire Prepared
manuals and company records

Surveyed 950 retail outlets in

Pune city

Analyzing and tabulating the Data

1. For analyzing of Data, statistical tools such as weighted average

method and percentage analysis were used

Interpretation of Data

Findings
 1. Arokya India has a market share of around 5%
in Chocolate industry for which the competitors
includes leaders like Cadburys & Nestle.

2. For Shrikhand market, Arokya has a market

share of 30% which includes tough competition
with chitle, warna&Gagangiri.

3. The distribution Network of Arokya India has

to be more efficient as compared to others.

Suggestions

1.Should increase the awareness of Arokya products

through advertising in various media.

2.The Retail margin for their products should be

increased so that that more number of retailers will
have Arokya products.
Analysis and Interpretation

Graphical Representation of Data

The data is obtained by administering the questionnaire to the selected samples and the results
are calculated on the basis of the data thus collected.The data is supported by graphs and charts
for easy understanding.

Pie Diagram
MARKET SHARE OF CHOCOLATES
Showing the
Market Share
CADBURY
48% of Chocolates

NESTLE
18% AMUL
16%

AMUL NESTLE CADBURY OTHERS

Competitors Market Share (%)

Cadbury 48

Nestle 18

Arokya 16

Others 18

Explanation:
From the fig.1, we can see that, Arokya faces a tough competition with the leaders from
chocolate industry like Cadbury & Nestle. Cadbury leads the market of Chocolates with a market
share of 48% and Arokya with a share of mere 16%.

Pie Diagram Showing the Market Share of Shrikhand

MARKET SHARE OF SHRIKHAND

Warna Gagangiri
20% 10%

Amul
Chitale 30%
40%

Amul Chitale Warna Gagangiri

Competitors Market Share (%)

Arokya 30

Chitale 40

Warna 20

Gagangiri 10

Explanation:
From the fig.2, it shows the market share of shrikhnad in Pune region. Thefig. Clearly reflects
that the share of ArokyaShrikhand holds a good position after Chitale. The market share is about
30% of Arokya, 40% of Chitale, 20% of Warna& 10% of Gagangiri.

Market Targeting

After the most attractive segments are selected, a company should not directly start
targeting all these segments. The attractiveness of the segments is also depending on other
important factors. In the main activity of defining a target market, four sub activities are given
which are the bases for deciding on which segments will actually be targeted.

AGE GROUP TARGETED

60
50
40
30 Target

20
10
0
7 - 20 yrs 21 - 40 yrs 40 - 50 yrs

The four sub activities performed by Arokya while targeting are:-

 Defining the abilities of the product and resources needed to enter a market
 Analyzing competitors on their resources and skills
 Considering the company’s abilities compared to the competitors’
 Deciding on the actual target markets.
 The first three sub activities are described at the topic competitor analysis. The last sub
activity of deciding on the actual target market is an analysis of the information made available
when comparing the company’s abilities to the competitors’.

This analysis leads to a list of segments which are most attractive to target and have a
good chance of leading to a profitable market share.Obviously, targeting can only be done when
segments are predefined; there have to be segments to analyze the competitors which are in this
market. When the process of targeting is ended, the markets to target are selected, but the way to
use marketing in these markets is not yet defined. To decide on the actual marketing strategy,
knowledge of the differential advantages of each segment is needed. When positioning a product,
the segments are first analyzed, this process is described next.

Distribution Strategy

In order to ensure a continuous & efficient distribution, an approximate figure has to be

arrived at for getting the initial orders & to ensure adequate supply so that any delays or resultant
losses are avoided. For this purpose, the company adopted the consumer response hierarchy
model so that, it is ensured that all the company enters the market with a bang avoiding any
problems of late or inadequate supplies. This is highly essential to support the huge promotional
budget, since if the supplies aren’t at the right time, all other effort can be in vain.

Studying the Demographic Conditions of INDIA

 It is expected that 80% of this targeted population will get aware about the products with
the help of the sales promotion, advertising and other marketing tactics.

 Out of the People being aware of the products & the company, 60% will have somewhat
exact knowledge of the product.
  It is expected that out of the people having the knowledge of the product, with the
product features and the requirement of milk in the country, 40% will develop a liking for
the products.

 20% of the target audience who have developed a liking, will opt for the company’s
product as against the products they are using for daily consumption.

 10% of the people who might prefer the product, will actually try it for the first time.

 5% of the people who have tried it for the first time, might be convinced to purchase the
product again

 Thus, adding up the people trying the product and the re-purchaser of the products, it
comes up to 624960 people.

Futuristic Vision

On the basis of the various issues and challenges the following suggestions will be of
much help to the philosophy of HRM with regard to its futuristic vision:

 There should be a properly defined recruitment policy in the organization that should give its
focus on professional aspect and merit based selection.
 In every decision-making process there should be given proper weightage to the aspect that
employees are involved wherever possible. It will ultimately lead to sense of team spirit,
team-work and inter-team collaboration.
 Opportunity and comprehensive framework should be provided for full expression of
employees' talents and manifest potentialities.
 Networking skills of the organizations should be developed internally and externally as well
as horizontally and vertically.
 For performance appraisal of the employee’s emphasis should be given to 360 degree
feedback which is based on the review by superiors, peers, subordinates as well as self-
review.
 360 degree feedback will further lead to increased focus on customer services, creating of
highly involved workforce, decreased hierarchies, avoiding discrimination and biases and
identifying performance threshold.
 More emphasis should be given to Total Quality Management. TQM will cover all
employees at all levels; it will conform to customer's needs and expectations; it will ensure
effective utilization of resources and will lead towards continuous improvement in all spheres
and activities of the organization.
 There should be focus on job rotation so that vision and knowledge of the employees are
broadened as well as potentialities of the employees are increased for future job prospects.
 For proper utilization of manpower in the organization the concept of six sigma of improving
productivity should be intermingled in the HRM strategy.

 The capacities of the employees should be accessed through potential appraisal for
performing new roles and responsibilities. It should not be confined to organizational aspects
only but the environmental changes of political, economic and social considerations should
also be taken into account.
 The career of the employees should be planned in such a way that individualizing process
and socializing process come together for fusion process and career planning should
constitute the part of human resource planning.

Major Influencing Factors in 21st Century

In the 21st century HRM will be influenced by following factors, which will work as
various issues affecting its strategy:

 Size of the workforce.

 Rising employees' expectations
 Drastic changes in the technology as well as Life-style changes.
 Composition of workforce. New skills required.
 Environmental challenges.
 Lean and mean organizations.
 Impact of new economic policy. Political ideology of the Government.
 Downsizing and rightsizing of the organizations.
 Culture prevailing in the organization etc.

CONCLUSION

To conclude Human Resource Management should be linked with strategic goals and
objectives in order to improve business performance and develop organizational cultures that
foster innovation and flexibility. All the above futuristic visions coupled with strategic goals and
objectives should be based on 3 H's of Heart, Head and Hand i.e., we should feel by Heart, think
by Head and implement by Hand.

The times when management could arbitrarily dictate terms to the employees and tread
upon their rights is something that is not relevant anymore. With the ballooning of the white
collar workforce, it becomes necessary for organizations to pay more attention to the needs of the
employees more than ever.

In recent years, with the high levels of attrition in the service sector, it has become
imperative for firms to have a structured separation plan for orderly exits of employees. Of
course, the concept of “pink slips” or involuntary exits are another matter altogether and involve
some bitterness that results because of the employee losing his or her job. In conclusion, it is our
view that employee separations must be handled in a professional and mature manner and though
attrition is a fact that concerns everyone in the industry, once an employee decides to leave, the
separation must be as smooth as possible.

As we know that Arokya is very big organization and market leader in dairy products. It
hasmaximum market share in Milk, Butter and Cheese, which are its main/core products. As we
know Arokya is a co-operative organization but chocolate industry is a profitable industry we
can’t ignore it. With the help of research, company can find out its week points in chocolate
product and can increase its market share through rectify mistakes. People have believed in
Arokyas product andthey will accept its chocolates also if effective actions were taken.

The survey resulted intofollowing conclusions:

 Arokya must come up with new promotional activities suchthat people become
awareaboutArokya Chocolates like Chocozoo, Bindaaz, and Fundoo.
 Quality is the dominating aspect which influences consumerto purchase Arokya
product, but prompt availability of other chocolate brands and aggressive
promotional activities byothers influences the consumer towards them and also
leads to increase sales.
 In comparison to Arokya Chocolate, the other players such asCadbury, Nestle,
areprovide a better availability and give competition to the hilt.
 People are mostlysatisfied with the overall quality of ArokyaChocolate, but for
theexistence in the local market Arokyamust use aggressive selling techniques.
 BIBILOGRAPHY

 www.arokya.co.in
 www.hrm.com
 www.google.com
 www.marketresearch.com
 www.dairy.com
 Research Methodology (HarperW.Boyd, C. R. Kothar)
 Human resource management – ashwathappa