Projct

Karnataka Milk Federation, Dharwad
Executive Summary KARNATAKA COOPERATIVE MILK PRODUCERS' FEDERATION LIMITED (KMF) KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the third 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 ' ' 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 Dair y Cooperative Societies (DCS) and distribute milk to the consumers in various Town s/Cities/Rural markets in Karnataka. The first ever World Bank funded Dairy Development Program in the country starte d in Karnataka with the organization of Village Level Dairy Co-operatives in 1974. Th e AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 wit h the financial assistance from World Bank, Operation Flood II & III. The dairy co-operatives we re established under the ANAND pattern in a three tier structure with the Village Level Dairy C o-operatives forming the base level, the District Level Milk Unions at the middle level to ta ke 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. Coordination of activities among the Unions and developing market for Milk and M ilk products is the responsibility of KMF. Marketing Milk in the respective jurisdic tion is organized by the respective Milk Unions. Surplus/deficit of liquid milk among the member M ilk Unions is monitored by the Federation. While the marketing of all the Milk Products is org anized by KMF, both within and outside the State, all the Milk and Milk products are sold under a common brand name NANDINI. Dharwad District Co-operative Milk Producers' Societies' Union Ltd Kousali Institute of Management Studies, Dharwad. 1
The Union was established in the year 1986 under the Operation Flood II & III. T he Union also later took over in 1988 the Milk Products Factory with a drying capac ity of 2.10 Lakh Liters per day, earlier established by the Karnataka Milk Products Limited (Gove rnment of Karnataka Undertaking). The Dharwad Milk Union is Co-operative society among the 13 establishment, under KMF. The Dharwad Milk Union (DMU) is one of the most modern plants in the countr y. It is located in the spacious 25 acres of land, located in Lakamanahalli Industrial Ar ea, adjacent to the Nation Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat. The Union covers the districts of Dharwad, Karwar, Haveri & Gadag, and has Chill ing Centres at Gadag,Haveri, Sirsi, Ron, Nargund, Hirekerur & Kumta with chilling ca pacity of 0.80 Lakh Liters Per Day. The Union procures and sells on an average 0.68 Lakh Kgs per Day and 0.59 Lakh L iters Per Day respectively. There are 7 Bulk Milk Coolers in the Union. Project Details PROJECT TITLE: CONSUMER PREFERENCE & BRAND AWARENESS TOWARDS NANDINI MILK & milk PRODUCTS in Hubli-Dharwad cities OBJECTIVE: Kousali Institute of Management Studies, Dharwad. 2
Consumers are attracted through competitively other milk brands. So main objecti ve of the study is to know the consumer preference in choosing the milk and there prod uct, and know the Nandini brand awareness about the Nandini Milk and other various kind of Nan dini Milk Product in the consumer mind in the particular geographical area at Hubli-Dharwa d cities. To analyze the consumer attitudes and perception towards price, quality, hygiene , long shelf life and Brand name.. To study what kind of family member group and income people are most interested to consume Nandini milk and their product. To find out what is the present level of loyal consumer of Nandini milk. To know consumer preference about the Nandini. To find out the satisfaction level of Nandini product availability and pricing To find out whether advertisement help the consumer in buying decision. I have carried out my studies by personally interviewing the customers from all the areas of Hubli and Dharwad. The sample size was 100. I had set the questionnaire based on the above said objectives very carefully. FINDINGS IN THE ORGANIZATION: Nandini products have a good brand image in the Market. . Pricing strategy of Nandini is appreciated by its customers. . Nandini is started with customer contact programs in order to get first hand fee dback from its customer and also to improve its products. . The various private brands have been trying to give a really tough competition b y giving the agents high trade margins. . DMU has a waste area of operation which is geographically spread and which leads high procurement and distribution charges. Kousali Institute of Management Studies, Dharwad. 3
. Lack of consumer awareness about the wide range of products sold. . The dealers wants only more commission because they also suffer same problem wit h other brands also but they complains with us only. . The organization is playing an important role in developing the economic viabili ty of the villages. . The powder making plant has taken an vital role in Dharwad Milk Union. SUGGESTIONS . The retailers and dealers should be satisfied with commission and schemes so tha t they can improve the sales in the market. . The company should come up with new products with different varieties and attributes to attract the customers. . To advertise about all the products in the market. . The organization can build good infrastructure better than these like maintainin g good garden etc. . If the company wants to restart the production of Double Toned Milk , firstly it has to provide sufficient knowledge and awareness about the attributes of products as compared to others. Milk: India's Number One Farm Commodity Milk is India's number one farm commodity in terms of its contribution to the na tional economy. In 1994-95, the value of its output based on producer price was Rs. 500 ,051 millions, exceeding that from paddy (rice). Notwithstanding its top place and the many ben efits it bestows on the lower rungs of the rural society, dairying has not received due attention from planners, economists, social scientists and others. For example, the investment in dairyin g made under the five-year plans is not commensurate with its output. Consequently, its potential has not been adequately tapped. Milk contains many different nutrients Milk and milk products contain a good balance of protein, fat and carbohydrate a nd are a very important source of essential nutrients including: .
Calcium . Riboflavin . Phosphorous . Vitamins A, D and B12 Kousali Institute of Management Studies, Dharwad. 4
. Pantothenic acid. Milk products also contain high quality proteins that are well suited to human nee ds. Milk proteins increase the value of poorer quality cereal and vegetable proteins in the diet by providing the amino acids these proteins lack. As a food, milk serves the following broad purposes: (a) growth, (b) reproductio n, (c) supply of energy, (d) maintenance and repair and (e) appetite satisfaction. The requirements of these categories vary with the individual, and in some instances not all the sta ted functions of the food need to be served, e.g. adults no longer require food for growth whereas in fants do. The functions of a food are served specifically through the various nutritionally im portant components, comprising proteins, carbohydrates, lipids, minerals, vitamins and w ater. Fat content is closely followed by milk proteins at about 3.4%. Milk proteins in turn are subdivided into casein, comprising approximately 76 80% of the total milk proteins , and the whey proteins, comprising roughly 20 24%. Modified milks explained: There are many types of milks on the market, including: Full cream full cream milk contains around four per cent fat and is a source of vitamins A and D. For children up to the age of two years, full cream milk is recommended . Reduced fat expect around half as much fat in reduced fat milk as full cream. Ch ildren over the age of two years can drink reduced fat milk. Skim milk contains less than one per cent fat. Children older than five years ca n safely consume skim milk. Both reduced fat and skim milk have vitamin A and D added to replace the naturally occurring vitamins that are reduced when the fat is remove d. Calcium enriched generally milks that are enriched with extra calcium are also f at reduced. A 250ml glass of milk contains 408 500mg of calcium. Flavored these milks can either be full cream or reduced fat. However, most vari eties contain a lot of sugar.
UHT (ultra-high temperature-treated) milk is treated with very high heat to allo w milk to be stored for long periods. Pasteurization milk: Kousali Institute of Management Studies, Dharwad. 5
Pasteurization is a process in which the milk is heated till 75 degree Celsius a nd the milk is exposed to this temperature for about 16 seconds and then the milk is suddenl y cooled to 4 degree Celsius. This process is carried out to destroy all the pathogenic bacter ia that are present in raw milk. Pasteurization is a very costly process and it requires the install ation of very costly machines. Unpasteurized milk: Most milk on the market is pasteurized (heat treated then cooled). Milk that has n t been through this process should be avoided. While pasteurization reduces the amount of some vitamins, such as vitamin C, it also kills bacteria. Unpasteurized milk is a hea lth hazard because of the dangers of bacterial diseases. NUTRITIVE VALUE OF MILK (Values are for 100g) Buffalo Cow Moisture (g) 81.0 87.5 Protein (g) 4.3 3.2 Minerals (g) 0.8 0.8 Carbohydrates (g) 5.0 4.4 Energy (kilocalories) 117.0 67.0 Calcium (mg) 210.00 120.0 Phosphorous (mg) 130.0 90.0 Iron (mg) 0.2 0.2 Carotene (ug) 160.0 174.0 Thiamine (mg) 0.04 0.05 Riboflavin (mg) 0.1 0.19 Kousali Institute of Management Studies, Dharwad. 6
Niacin (mg) 0.1 0.1 Vitamin B12 (ug) 0.1 0.1 Folic acid (ug) Total 3.3 5.6 Free 5.6 8.5 Vitamin C (mg) 1.0 2.0 Sodium (mg) 19.0 73.0 Potassium (mg) 90.0 140.0 Fat (g) 7.97 3.78 Total fatty acids (g) 7.18 3.57 Linoleic acid (g) 0.08 0.09 Linolenic acid (g) 0.09 0.06 Total phospholipids (g) 0.03 0.035 Cholesterol (g) 0.014 0.012 India: World's Largest Milk Producer India has become the world's No. 1 milk producing country, with output in 1999-2 00
(marketing year ending March 2000) forecasted at 78 million tones. United States , where the milk production is anticipated to grow only marginally at 71 million tones, occu pied the top slot till 1997. In the year 1997, India's milk production was on par with the U.S. at 71 million tones. The world milk production in 1998 at 557 million tones would continue the steady progress in recent years (see Table 1). Furthermore, the annual rate of growth in milk produ ction in India is between 5-6 per cent, against the worlds at 1 per cent. The steep rise in the gr owth pattern has been attributed to a sustained expansion in domestic demand, although per capita consumption is modest - at 70 kg of milk equivalent. Annual Milk Production has trebled India's annual milk production has more than trebled in the last 30 years, risin g from 21 million tons in 1968 to an anticipated 80 million tons in 2001. This rapid growt h and Kousali Institute of Management Studies, Dharwad. 7
modernization is largely credited to the contribution of dairy cooperatives, und er the Operation Flood (OF) Project, assisted by many multi-lateral agencies, including the Europ ean Union, the World Bank, FAO and WFP (World Food Program). In the Indian context of poverty a nd malnutrition, milk has a special role to play for its many nutritional advantage s as well as providing supplementary income to some 70 million farmers in over 500,000 remote villages. Table 1. World's Top Milk Producers. Countries 1998 1997 1996 India 74 71 68 United States 71 71 70 Russian Federation 33 34 36 Pakistan 22 21 20 Brazil 22 21 19 Ukraine 14 15 16 Poland 12 12 11 New Zealand 12 11 10 Australia 10 9 9 EC 125 125 125 World (includes others) 557 549 542 The origin of Co-operative Milk Producers societies: The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges of the Himalayas. Similar is the story of Amul which inspired 'Operation Flood' and her alded the 'White Revolution' in India. It began with two village cooperatives and 250 lite rs of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul coll ects processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer memb ers. Achievements of dairy co-operatives: A commitment to help rural producers help themselves has guided the Dairy Board' s work for more than 30 years. This commitment has been rewarded with achievements made by cooperative dairies in milk production, employment generation, and per capita av ailability of milk, foreign exchange savings and increased farmer incomes. The start of a revolution: Kousali Institute of Management Studies, Dharwad.
The revolution started as awareness among the farmers that grew and matured into a protest movement and the determination to liberate them. Over four decades ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere els e in India. His income was derived almost entirely from seasonal crops. The income from milch bu ffaloes was undependable. The marketing and distribution system for the milk was controlled by private traders and middlemen. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throwaway prices. I n this situation, the one who gained was the private trader. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if marketed their milk them selves. In order to do that they needed to form some sort of an organization. This realization is what led to the establishment of the Kaira District Cooperative Milk Producers' Union Limited (p opularly known as Amul) which was formally registered on December 14, 1946. NATIONAL DAIRY DEVELOPMENT BOARD: History: The NDDB was founded to replace exploitation with empowerment, tradition with Modernity, Stagnation with growth, transforming dairy into and instrument for th e development of Indian s rural people. The NDDB was established in 1965; the board is registered under the Societies Registration Act and the public Trust Act, fulfilling the desire of the Prime Mi nister of India the late Lal Bhahaddur Shastri to extend the success of the Kaira Co-operative M ilk producers union (AMUL ) TO OTHER PARTS OF India. Dr Vergese Kurien was the founder chairma n. The success combined the wisdom & energy of farmers with professional management to successful capture liquid milk and milk product markets while supporting farmer s investment with inputs and services. The Growth NDDB began its operations with the mission of making dairying a vehicle to a bet ter future for millions of gross roots milk producers. The mission archived helped t o launce Operation Flood , a programmed extending over 26 years and with the help of World Ban k
Loan India become the world s largest milk producing country. As per March 2001 In dia s 96000 Dairy Co-operative are integrated thorough a three Tier Cc-operative struc ture. The Anand pattern which is owned by more than 10 million formers procures an average of 1605 million liters of milk every day. The milk is processed and marketed by 170 milk producers cooperative unions which, in turn own 15 state co-operative milk marketing federation. Since its establishment the dairy development board has planned and spearheaded India s Dair y Kousali Institute of Management Studies, Dharwad. 9
programmer by placing dairy development in the hands of milk producers and the p rofessionals they employ to manage their co-operatives. In addition, NDDB also promotes other commodity based co-operative, allied industries and veterinary biologically on an intensiv e and nationwide basis. Objectives of NDDB: . To sponsor, promote, manage, acquire, construct or control any plant or work, which promote projects of general public utility relation to dairying. . To make information available on request to technical services to increase production of Milk. . To prepare initial feasibility studies of dairying and other dairy related projects and undertake subsequent designing planning and start up those projects. . To undertake research and development programmed related to production and marketing of milk and milk products. . To provide assistance for exchange of information to other international agencies. Services rendered by NDDB: NDDB provide the following services. . Planning dairy and rural development projects. . Organization of farmer co-operative societies. . Setting up of dairy and cattle feed plants. . Manpower planning and training. . Applied research and development. . Implementation of milk production enchantment programmers. KARNATAKA COOPERATIVE MILK PRODUCERS' FEDERATION LIMITED (KMF) The very much impressed by the successes of AMUL dairy. With this spirit in Karnataka in the year 1974 KARNATAKA MILK FEDERATION starts and works all ove r Kousali Institute of Management Studies, Dharwad. 10
Karnataka as per the rules and regulations themes and adopted this as the model and starts its operation on this and its very much success on this field. The first dairy in Karnataka was started in Kudige in Kodagu district in 1955, F urther in June 1974; an integrated project was launched in Karnataka to restructure and re organize the dairy industry on the co-operative principle and to lay foundation for a new dir ection in dairy development. In 1975, the World Bank aided dairy development was initiated. The present Karna taka Milk Federation (KMF) came into existence in 1984-as a result of merging of Karn ataka Dairy Development Co-operation, small co-operatives and Karnataka Milk Production Deve lopment and loose vendors. And in the year 1986 the Karnataka milk federation bifurcated to many parts to w ork many more towards customers and formers needs and wants and it is de-centralized and regional authority is be given to the managing directors and marketing managers and forms and cooperative societies union to give suggestions to this management. KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the third 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 ' ' 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 Dair y Cooperative Societies (DCS) and distribute milk to the consumers in various Town s/Cities/Rural markets in Karnataka. The first ever World Bank funded Dairy Development Program in the country starte d in Karnataka with the organization of Village Level Dairy Co-operatives in 1974. Th e AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 wit h the financial assistance from World Bank, Operation Flood II & III. The dairy co-operatives we re established under the ANAND pattern in a three tier structure with the Village Level Dairy C o-operatives forming the base level, the District Level Milk Unions at the middle level to ta
ke 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. Coordination of activities among the Unions and developing market for Milk and M ilk products is the responsibility of KMF. Marketing Milk in the respective jurisdic tion is organized by the respective Milk Unions. Surplus/deficit of liquid milk among the member M ilk Unions is monitored by the Federation. While the marketing of all the Milk Products is org anized by KMF, Kousali Institute of Management Studies, Dharwad. 11
both within and outside the State, all the Milk and Milk products are sold under a common brand name NANDINI. At the end of the March 1998, the network of 8023 Diary Co-operative Societies ( DCS) have been established which are spread over 166 taluks of the total 175 taluks i n all 27 districts of Karnataka. There are 13 Milk Unions and Dharwad Milk Union (DMU) is one among them. There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants and 2 Produ ct dairies for chilling, processing, conservation and marketing of milk. To supply cattle feed there are 4 cattle feed plants. To impart training, institutes at Bangalore and regional training institutes at Dharwad and Gulbarga are functioning. Three nitrogen plants (2 plants of 25 CPM and 1 plant of 5 CPM) are been set-up to supply nitrogen, which is used for Refrigeration purpose. Three diagnostic centers have been set-up for monitoring diseases: three fodder farms at Rajkunte, Kuttanahalli and Kodagu have been set-up to supply good quality of fodder and seed production farm at Shahpur has been set-up. The federation giving details of the latest technology in dairy industry etc is published Ksheer Sagar magazine monthly. KMF is a co-operative apex body in the state of Karnataka for representing dairy organizations and also implementing dairy development activities to achieve the following objectives. . Providing assured and remunerative market for all the milk produced by the farmer members. . Providing 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 and dissemination of know-how. . To facilitate rural development by providing opportunities for selfemployment at village level, preventing migration to urban areas, etc. Kousali Institute of Management Studies, Dharwad. 12
THE MILK UNION: Milk union is a channel of District Co-Operative Societies in organized form for milk procurement. The procurement route is linked to chilling center or a dairy. Dhar wad Milk Union is one of such Milk Unions. It is the middle tier of the complex co-operative or ganization network. Unions are formed by federating the societies in locating geographical area. The milk unions are organized to make them economically viable and the jurisdiction exten ds from one district to 3 Districts. There are 5 Milk Unions who s Jurisdiction covers a singl e district, 4 Unions COVER 2 District, each 3 Unions cover 3 districts and one Union s territory extends to 4 District. All Unions own their own Milk Processing Facilities. UNITS OF KARNATAKA MILK FEDERATION: KMF has the following Units functioning directly under its control: 1. Mother Dairy, Yelahanka, Bangaloru. 2. Nandini Milk products ,KMF complex, Bangaloru. 3. Cattle feed plants at Rajanukunte/ Gubbi/ Dharwad/ Hasana. 4. Nandini Sperm Station (Formerly know as Bull Breeding Farm and Frozen semen Bank)at Hessaraghatta. 5. Pouch Film Plant at Munnekolalu, Marathhalli. 6. Center Training Institute af KMF Complex, Bangloru. CO-0PRATIVE MILK PRODUCERS SOCITIES UNIONS: 1. Bangaloru Milk Union 2. Belgaum Milk Union 3. Bellary Milk Union 4. Bijapur Milk Union 5. Dakshin kannada Milk Union 6. Dharwad Milk Union 7. Gulbarga Milk Union 8. Hassana Milk Union Kousali Institute of Management Studies, Dharwad. 13
9. Kolar Milk Union 10.Mandya Milk Union 11.Mysore Milk Union 12.Shimoga Milk Union 13.Tumakur Milk Union FUNCTIONS: These Unions help to organize new Primary Dairy Co-operative Societies. The Unio n also helps in managing these DCS by assisting in accounts, purchase, process and marketing liquid milk. The Union helps in providing all the input facilities to DCS and ch annelizes the dairy farmers through DCS. The Union provides the following facilities. . Co-ordination of activities between the unions. . Providing Balanced Cattle Feed. . Providing Animal Health Care. . Developing the markets for the increasing in milk production. . Providing Artificial Insemination facility for breed improvement. . To make the brand as a house hold name. . Excellence in quality is to be maintained to lay a solid foundation for wide spa red acceptance of Nandini products. . To increase the market share of Nandini . . Providing Training for breeding, feeding management. OBJECTIVE : . To build primary dairy cooperative societies to manage the dairy activities. . To provide assured remunerative market to the milk produced by the producer members. . To supply quality milk and milk products to urban consumers. . To ensure provision of milk production inputs, processing facilities and dissemination of know-how. . To facilitate rural development by providing opportunities for self employment a t village level, preventing migration to urban areas, introducing cash economy and opportunity for steady income. Kousali Institute of Management Studies, Dharwad.
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MILK FEDERATION: The main objective of the federation is to help in formation of Milk Unions thro ugh the state and thus forming the state level apes organization. The Federation impleme nts all the project activates. After the project activities are accomplished the federation aims at formulating Marketing strategies in marketing the Milk and Milk Product. The Karnataka Milk Federation which was setup in 1984 has the following functions: . The foremost function of KMF was to co-ordinate the activities between the Union and also in making market available so that production increases . The Federation also manages surpluses and deficiencies of liquid of milk among t he milk union and help in disposing milk and milk product at reasonable price . The Federation also manages to market the milk and milk products outside the sta te. . Provides Balanced cattle feed, mineral mixture, frozen semen straws and liquid nitrogen are produced and distributed to Unions Excellence in quality is maintai ned to lay a solid foundation for widespread acceptance of the milk and milk products. Training and developing senior managerial personnel, acquiring and applying all recent technologies, prescribing quality guidelines and norms. MEMBERS IN DISTRICT CO-OPERATIVE SOCIETY: BUSINESS STRATEGY OF NANDINI: The federation is striving to excel on three critical factors of business to giv e remunerative price to producers and to give value for money to customers QUALITY, COST & DELIVERY QUALITY -Fresh and pure milk Quality Excellence from cow to consumer . COST -Least selling price for market milk in the country Minimum price spread be tween the purchase price and selling. PRICE -Remunerative price to the producers. DELIVERY -Prompt & assured delivery at any time and any place. There are days in the cities of Karnataka, when there is no water or power supply in the homes of consumers, but there are no days without supply of NANDINI milk.
VETERINARY SERVICES: . Genetic up-gradation of livestock . Control of Diseases, Mastitis control, regular vaccination, etc. Kousali Institute of Management Studies, Dharwad. 15
. Veterinary health cover to all animals Regular and Emergency Services . Artificial Insemination Initiated Cluster AI facilities During 2005-06, no. of A I done 13.3 lakhs when compared to 11.4 lakhs AI done in 2003-04-Increase of 16.5% . Embryo transfer technology to upgrade cattle wealth. FEEDS AND FODDER: . Fodder crop seeds supplied to farmers. . Urea treatment of straws & Urea Molasses Blocks. . Four cattle feed plants all ISO certified and operating with more than 100% capacity utilization. . The Federation has sold 1,54,249 MTs of cattle feed during 2004-05. CLEAN MILK PRODUCTION: . Training producers on hygienic management, milking methods and handling of milk. . Milk Producers provided with SS pails, Saff kit, etc. . Electronic Weighing Machines, Automatic Milk Collection Units and Bulk Milk Coolers in DCS. . Community Milking Parlors . SS Cans and Milk Collection Materials. . CMP Promotional Materials and documentary Films. CLEAN MILK PRODUCTION IMPLEMENTED: . Number of Milk Unions involved 11 . Number of districts covered 12 . Number of Milking parlors 94 (5,785 Number of animals milked twice in a day Total 55,000 liters of milk collected per day) . Number of BMCs established 112 (capacity of 2.19 LLPD) with 24 BMC Tanker routes in operation. . Quality of milk collected from BMC centers with an MBRT time from 5-6 hrs and SPC count <5,00,000. . Under implementation -with GOI assistance 109 BMCs (2.2 LLPD capacity) will be added by March 2006. Kousali Institute of Management Studies, Dharwad.
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MILK PROCUREMENT AND SALES: *2010 is projected THE PRODUCTS OF KMF: Milk Toned Milk, Full Cream Milk, Good Life, Standardized Milk, Flavored Milk, Smart, Slim, Butter Milk, Homogenized Toned Milk, Milk Products Ghee, Badam Powder, Butter, Pannier, Curds, Peda, Cheese, Ice Cream, Gulab jamoon mix, Khova, CashewBurfi, The growth over the years and activities undertaken by KMF is summarized briefly hereunder: Dairy Cooperatives Membership Milk Procurement Milk Sales Cattle Feed Consumed Daily Payment to Farmers NO s NO s Kgs/day Lts/day Kgs/DCS Rs.Lakhs 1976-77 416 37000 50000 95050 220 0.90 2009-2010( Up to Jul'09) 11542
2018788 3668314 / Peak Proc.40.41 LKPD 2377364 / Curds:2.27LKPD 3046 449 Kousali Institute of Management Studies, Dharwad. 17
Karnataka Milk Federation, Dharwad Turnover Rs.Crores 3135.00 Karnataka Milk Federation, Dharwad Turnover Rs.Crores 3135.00 PERSPECTIVE PLAN 2010: The Operation Flood (OF) Programmed initiated by NDDB in 1970 was a planned attempt to revive India's Dairy Industry from a premature stagnation. Th e OF Programmed not only propelled the growth of dairy development in India, it also helped India become the world's largest milk producer. OF enhanced the incomes and quality of life for millions of India's dairy farmers, most of them poor and many of them women. It has become India's largest Dairy Development Programmed. OF (1970-1996) created a strong foundation to transform India's dairy sector into a vibrant business activity. It paved the way to take up new initiatives an d create new conditions to firm up India's world leadership in milk production. Th e new challenge for the Dairy Industry was to explore ways to emerge stronger usin g the network created under OF. The response is Perspective 2010, a plan that attempts to take the dairy cooperative movement to its highest potential. Perspective 2010 focuses on four key areas. These include Strengthening Cooperatives Business, Production Enhancement, Assuring Quality and creating a National Information Network. The State Milk Marketing Federations and the Milk Producers' Cooperative Unions, the architects and key beneficiaries have identif ied the thrust areas. The plan is designed keeping at helm the benefit to farmers at large. NDDB facilitated the planning process and will provide technical support and need-based finance for implementing Increase liquid milk procurement by cooperatives to 33 percent (488 lakh kilograms per day) of the marketable surplus in Operation Flood areas, constitut ing 80% of the national milk produced (i.e. Quadruple liquid milk procurement by yea r 2010) Increase liquid milk sales to 365 lakh kilograms per day, more than 60 percent of the market shares in metros, and on average of close to 50 percent in the Class I cities served by cooperatives (i.e. Treble fluid milk marketing by year 2010) After the closure of OF-III project. Government of Karnataka and NDDB (National Dairy Development Board) signed an MOU during February 2000, for Kousali Institute of Management Studies, Dharwad. 18
further strengthening the Dairy Development Activities in Karnataka with an outlay of Rs.250 Crores. Consequent to the announcement of new lending terms and conditions by NDDB through an evolution of an action plan - Perspective 2010 to enable the dairy cooperatives to face the challenges of the increased demand for milk and milk products by focusing efforts in the four major thrust areas of Strengthening the Cooperatives. Enhancing Productivity, Managing Quality and building a National Information Network, plans are under implementation. The 4 Milk Unions viz., Dharwad, Tumkur, Bijapur and Gulbarga that were having accumulated losses were included for rehabilitation programmers under the Centrally Sponsored Scheme "Assistance to Cooperatives" which is also under implementation. STRATEGY: . Identify and address quality related problem at every stage from the producer at the village co-operative, to the dairy plant and the process of final delivery to the consumer. . Facilitate improvement of hygiene, sanitation, food safety and operating efficiency in the dairy plants and sensitize dairy personnel to product quality aspects as per international standards FUTURE VISION: To consolidate the gains of Dairying achieved in the state of Karnataka and with a view of to efficiently chill, process and market ever developing and increasing milk procurement with an utmost emphasis on the Quality and in the process conserve the socio-economic interests of rural milk producers, the Govt. of Karnataka through KMF has proposed to undertake several projects with financial and technical support of NDDB for which an MOU was signed between Govt. of Karnataka and NDDB on 10th Nov. 2004. DHARWAD MILK UNION: Dharwad District Co-operative Milk Producers' Societies' Union Ltd Kousali Institute of Management Studi
The Union was established in the year 1986 under the Operation Flood II & III. T he Union also later took over in 1988 the Milk Products Factory with a drying capac ity of 2.10 Lakh Liters per day, earlier established by the Karnataka Milk Products Limited (Gove rnment of Karnataka Undertaking). The Dharwad Milk Union is Co-operative society among the 13 establishment, under KMF. The Dharwad Milk Union (DMU) is one of the most modern plants in the countr y. It is located in the spacious 25 acres of land, located in Lakamanahalli Industrial Ar ea, adjacent to the Nation Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat. The Union covers the districts of Dharwad, Karwar, Haveri & Gadag, and has Chill ing Centres at Gadag,Haveri, Sirsi, Ron, Nargund, Hirekerur & Kumta with chilling ca pacity of 0.80 Lakh Liters Per Day. The Union procures and sells on an average 0.68 Lakh Kgs per Day and 0.59 Lakh Liters Per Day respectively. There are 7 Bulk Milk Coolers in the Union. Apart from selling milk, it sells pure buffalo milk & produces very thick 250 gm Curds in mud pots specially designed for this namely "KUDIKE MOSARU", the famous Dharwad Peda, Butter in bulk as well as in retail packs and in 10 gm chipsets, Ghee, Skimmed Milk Powder and Pannier. A DMU group of experienced officers, appointed by the Karnataka Milk Federation surveyed the whole of Dharwad districts (includes two newly formed district Gadag and Haveri) and Uttar Karnataka. Further they found out there as a need for a Milk Dairy. They traveled the surrounding villages, educated the villagers about Milk and Milk products and the benefits they would get from the Milk Dairy. Seeing the overwhelming response and untapped resources and the huge the Federation decided to setup the Milk Union in 1984, known as the 1988, the Raipur Dairy and Chilling Center, setup in 1968, also came under In 1989, the training center, which was controlled by KMF, came under Dharwad market Further in the union. Milk Union.
DMU was Rs.7 Crore Projects of which Government has Rs.2Crore of share capital and authorized capital of DMU is Rs.5crore. Kousali Institute of Management Studies, Dharwad. 20
DMU formed 551 milk producer s co-operative societies in Dharwad, Gadag, Haveri and Uttar Kannada districts. The prediction capacity of DMU is 2 lack liters of milk per day and also has the capacity to produce 12 tons of milk powder, 10 tones of butter, 6 tones of ghee per day.DMU is collecting 70thousand liters of milk per day from its societies and s ells 60 thousand liters of milk per day and the remaining milk is used for producing mil k products. FUNCTIONS OF DHARWAD MILK UNION: One of the core function is Procurement of milk, processing it and marketing mil k and milk products, Dharwad Milk Union markets its products under brand name of Nandini . The main function of DMU is to procure milk from villagers and pay them the right price. To educate the villagers about milk and its quality To make Nandini as a part of daily life.
To provide good quality of cattle feed, fodder, veterinary properly and in an efficient manner. To see that the DCS s are carrying out their activities properly and in an efficient manner. OBJECTIVES OF DHARWAD MILK UNION: . Providing hygienic and good quality of milk to the consumers. . To build the economic strength of the milk products in villages. . To eliminate middlemen s in the business so that the milk products receive their appropriate share of bread. . To educate the villages about the adulteration of milk and its harmful effect on the body. . To see that every citizen becomes healthy by consuming good quality of milk. . To make villagers self-viable and build self image. . DHARWAD MILK UNION
Kousali Institute of Management Studies, Dharwad. 21
STATUS A Co-operative society registered under the Co-operative Act 1959. NATURE OF BUSINESS Procuring & Marketing of Milk Production & Sale of Milk Products. SHARE CAPITAL 3 Crores approx PLALNT CAPACITY 2 Lakh lites/day Milk Powder 12 MT/Day Butter 6MT/Day Ghee 6MT/Day MILK CHILLING CENTERS AND CAPACITY Gadag 20.000LPD CENTERS AND CAPA Haveri 20.000 LPD Hirekerur 20.000LPD Naragund 8.000 LPD Ron 10.000LPD Sirsi 20.000 LPD KARWAR PACKING UNIT The milk in Bulk is sent Packing and Distribution at karwar which supplies the need of Karwar, Gokarna, Honnavar, Bhatkal, Murdeshwar and Goa. PRENSE VALUE OF ACTIVITY Collection of Milk 70.000LPD Sale of milk 60.000LPD AREA OF OPERATION Dharwad, Haveri, Gadag Uttar Kannada district BOARD OF DIRECTORS Elected Member 8 EX-Officers 5 By Govt. 3 TOTAL WORKERS 339 Workers LOCATION Lakamanahalli Industrial Area, Dharwad. DEPARTMENT 9 BRAND NAME NANDINI PROCUCTS MILK:Toned Milk, Standard Milk, Shubham Milk. MILK PRODUCTS: Butter, Ghee, Curd, Lassi, Paneer, Milk Powder CO-OPERATIVE SOCIETIVE AT VILLAGE LEVEL 460 Societies PROCESS AT DHARWAD MILK UNION: Kousali Institute of Management Studies, Dharwad.
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The milk collected at DCS s ( District Co-operative Society ) is brought to the center thought carries trucks etc. the quality and quantity of milk bought is ch ecked at the Reception center by a supervisor. A sample of milk is taken and is tested in a laboratory for fat content, Solid N ot fat (SNF) acidity etc. As the milk is at room temperature is to be brought down to 40 c to 50 c. so tha t it may check the growth of bacteria. To ensure this milk is passed through a chilli ng chamber where the milk is chilled. Its temperature is bought down and then the m ilk is stored in a tank called as Row Milk Tank . Row Milk or Unpasteurized milk: Most milk on the market is pasteurized (heat treated then cooled). Milk that hasn t been through this process should be avoided. While pasteurization reduces the amount of some vitamins, such as vitamin C, it also kills bacteria. Unpasteurized milk is a health hazard because of the dangers of bacterial diseas es. From this tank milk is pumped to a pasteurizing cell where the milk is heated up to 720 c and 15 seconds, so that all the bacteria and microorganisms may be killed and th en the milk is simultaneously cooled to 40 C to 5o C and is store in a Pasteurized Milk Tank From here the milk is separated according to the requirement of production of different types of milk and the remaining milk is used for manufacturing milk products. Pasteurization milk: Pasteurization is a process in which the milk is heated till 75 degree Celsius a nd the milk is exposed to this temperature for about 16 seconds and then the milk is suddenl y cooled to 4 degree Celsius. This process is carried out to destroy all the pathogenic bacter ia that are present in raw milk. Pasteurization is a very costly process and it requires the install ation of very costly machines. WORKFLOW MODEL. (END TO END) Production process has the following work flow model: Kousali Institute of Management Studies, Dharwad. 23
Karnataka Milk Federation, Dharwad PROCUCT PROFILE KMF, Dharwad product the following milk and Milk Products. TONED MILK: Karnataka s most favorite milk. Nadine Toned Fresh and pure milk containing 3.0% FAT and 8.5% SNF, Available in 500ml and 11tr packs. SHUBHAM:
Buffalo s milk, 100% pure pasteurized processed and packed hygienically, this milk has 5%fat and 9%snf. Available in 5ooml and 1ltr, and also Available in 5trs packs for marriages, and other functions. CURD: Nandini curd made from pure milk, it s thick delicious Giving you all the goodness of homemade curds. Available in 200gms and 500gms sachet. MILK POWDER: Enjoy the taste of pure milk! Skimmed milk powder made form pure milk, processed and packed hygienically. Available in 100gms, 200mgs, 500gms, 1kg& 25kg Pack. BUTTER: Rich, smooth and delicious. Nandini butter is made out of fresh pasteurized cream, rich taste, smooth texture and the rich purity of cow s milk makes any preparation a delicious treat. Available in 100gms(salted), 200gms and 500gms cartons both salted and unsalted. PEDA : No matter what you ate celebrating! Made from pure milk, Nandini pada is a delicious treat for the family. It will be store at room temperature approximately 7days. Available in 250gms pack containing 10pieces each. GHEE: A state of purity, Nandini ghee made from pure butter. It is fresh and pure with a delicious flavor, hygienically manufactured and
packed in a special pack to retain the goodness of pure ghee. Shelf life of 6 months at ambient temperature. Available in 200ml, 500ml, 1000ml sachets, 51trs tins and 15kegs tins. The milk produced here is differentiated by the content of fat and SNF Kousali Institute of Management Studies, Dharwad. 24
TYPE FAT SNF Toned Milk 3.1% 8.5% Standard Milk 4.5% 9% Subham Milk 6% 9% Full Cream Milk 5.1% 9% He below table gives a brief idea of the milk products, their fat SNF, moisture Content: PRODUCT FAT SNF MOISTURE Butter 83% 1% 16% Ghee 99.8% -0.2% Panner 20% 30% 50% ADMINISTRATION DEPARTMENT The Administration Department controls the overall functioning of the organizati on. The organization consists of the following three levels. Managerial cadre includes Managing Director, Deputy Manager, and Assistance Manager. Supervisory level included technical officers and supervisors. Worker level includes labors helpers. PURCHASE DEPARTMENT: It is a sub-department, which comes under Finance Department. The main work of t his department is to purchase various materials required by different department. Af ter ascertaining Kousali Institute of Management Studies, Dharwad. 25
the stock position by stores department and indent is sent by different departme nt duly approved by the Managing Director. This department act to purchase materials. It also maintains records of all the suppliers calls for Tenders, quotations etc . Quotations with lowest rate are sanctioned. Purchase up to 50,000, then the approval of Man aging Director. QUALITY CONTROL DEPARTMENT: In DMU, at every stage, care is taken to ensure that the customer gets the produ ct, which have a very high quality. Hence there is a separate department called Quality De partment. Where the quality testing is done. There is a separate laboratory for this. Qual ity control is very essential as to maintain the freshness of the milk. All the containers, pipes an d other equipments are washed with hot water before starting off with new production. There are man y tests conducted here. The packed milk we get will have undergone 3 quality tests. Firs t test is done on raw milk, whicget from chilling center. Next before standardization and the l ast test before packing. The other tests conducted are: TEST REASON Temperature Should be below 5 degrees Clot on Boiling If mill curdles soon after billing milk is rejected Acidity Test To test the extent of acidity Alcohol Test To check the heat stability of milk Lactometer To check the density of milk Fat test Percentage of fat determined SNF Test Percentage of SNF determined for pricing SNF=CLR+FAT/4 STORE DEPARTMENT The Stores Department in DMU follows the Cordex system (Coded Control System). A card is maintained for each item and a number is allotted. The card attached to each article consists of amount balance, date of issue, purchase etc. This is later recorded in separated ledge book. The inventories are of different kind ranging from mechanical, spares, pac king items to animal drugs, and stationary and veterinary drugs. There are at least 4000 diffe rent inventories. This department has the following services: . It tries to maintain maximum and minimum level of inventory
so as to avoid blockage of capital and storage. . Ordinary and local available commodities are maintained at minimum possible level. Kousali Institute of Management Studies, Dharwad. 26
. Items of urgent and not easily available are stored sufficiently for further dem and. FINISHED GOODS STORES: This Department acts as an interface between production and Marketing Department . It is concerned with maintenance of finishes goods connected records. It received a ll the finished goods and issued the stock to marketing department as per indents. It ensures th at the goods are maintained properly with respect to quality Accounts are maintained and daily and daily and monthly report is submitted to t he production. Marketing and Finance Departments. As the products as perishable Fir st-In-firstOut method of inventory is followed. FINANCE DEPARTMENT: This Department is responsible for keeping all the inward and outward flow of mo ney of union. It prepares budget every year and financial rules for receipts all paymen ts are framed. The functions of these departments are: . To prepare monthly accounts (Receipts and payment P & I Account and Balance Sheet). . To prepare quarterly financial statement. . To prepare integrated business plan. . To prepare year ending financial statements. . To get accounts audited from statutory books of accounts. DMU Follows to types of auditing: 1. Pre-Audit System done by Finance and Account Department every year. 2. Statutory System Done by Private charted accountants every year. CANTEEN: There is a Canteen in the premise itself. The employees are provided lunch, Tea etc., at reasonable rates. The Canteen is handled by the Canteen-In charge. TIME KEEPER: This Department records the working hours of the employees. The time machine sho ws the entry time and exit time of each employee. The workers divided into differen
t shifts control the working of the Department. Each employee is given a Punch Card, SECURITY DEPARTMENT: Dharwad Milk occupies 25 acres of land the whole premise is been guarded by the security personnel. The security people work in three shifts. All the vehicles a re checked before Kousali Institute of Management Studies, Dharwad. 27
entering the premise. The departments is also maintains separate registers like store-in Register, Attendance register etc. SKILLS: The skills here refers too the various skills the workers have here the workers are further divided into three categories. This first category contains the people who are i n the topmanagement level the second category consists of the supervisor s office assistant s etc. The third category consists of the supervisor s office assistants etc. The third categ ory consists of the workers at the operational. The first category consist of the people who are in the decision making process in KMF these people are highly qualified few Deputy Managers are to industries like IRM A, Anand dairy for Training. The second category is related to office work and fieldwork. These people are al so trained in computer Applications, secretarial skills, accounting skills etc. The third level people consist of the workers who are actually into the operatio n these people are also trained into fields like checking the quality of milk processing packing etc. TRAINING SYSTEM The Union emphasizes on training the employees. Most of the training given to th e employees here are On-the-Job training and few Off-the-Job Training. . Procurement and Technical Input Training (NDDB) . PG Diploma in Rural Management . Basic Computer Applications. . Data Base Administrator . Finance Training for non-Finance Officer . Co-Operative management Training Programs . Clean Milk Production Training STYLES: A) DMU has follows Top to Bottom or Top down style system.
B) The Styles of the organization is said to follow the participative type that is the management cadre follow the participative type of administration. The fact is th at for a manufacturing firm like the KMF, Dharwad this type of administration is necessar y. The Indicators of the Style are: Follows Orders, rules and procedure Is always Reliable, Dependable Watches Details\Prefers to write out Communications Is Rational, Logical, Self-Controlled, Fair and Firm. Kousali Institute of Management Studies, Dharwad. 28
Decision making parameter for day to day operations. The marketing department provides information to production department regarding daily requirements of the sale of the milk and milk products based on the marketing de mand, later the production department will take the decision about production activities. STRATEGIES The Dharwad Milk Union has the following set of strategy, which will be formulat ed event year. The present year has the following strategies. The strategies are fo rmulated with the help of KMF and NDDB an the union members. Below are the strategies set for this year. SRTAGETIES OF THE MARKETING DEPARTMENT: . Visit to all roots of individual points by going in a root distribution vehicle for contact with all agents. . Aims to conduct 5 Consumer Awareness Program and various Seminars. . Aims at conducting agents meetings. . Aims at setting 10 Exclusive NANDINI Milk Parlors. . Aiming to set up new sales promotional and advertisement activities. . Women association programs. . Joining with other programs. Strategy Implementation system: Marketing strategy like sales promotional and advertisement activities of DMU are as follows. . Press advertisements . Hoardings . Wall paintings . Rental for KSRTC Buses . Leaf lets
. Banners . Vehicles paintings and own hoarding paintings . Pole ads and Flute boards . Rate display boards . Milk carry bags . Calendar and greetings . Exhibition, drawing and consumer mela. Kousali Institute of Management Studies, Dharwad. 29
INVENTORY CONTROL SYSTEM: DMU has follows inventory control system like, FIFO System (First In First Out System). It means milk which is procured first which is sent first to production process immediately. Staff: The staff deals with the various personnel Policies followed by the Organization . Below are given the personnel policies followed by the Organization. Personnel policies: There are around 339 employees working in Dharwad Milk Union. There are various policies followed by the Union. The Human Resource Department is the in Dharwad Milk Union Works as a sub Department of Administration Department. Recruitment & selection: Due to registration, termination, retirement and transfers, in the concerned dep artment head will give the manpower requirement along with the job description according the HR department arranges for recruitment. The manpower sourcing is done through advertisement, manpower consultant, employment exchanges and personnel reference and available data bank. Promotion and transfer: Promotion is solely on the basis of sensitivity and experience. Transfers are al ways accompanied by promotions. Induction: After an employee is employed in DMU, he\she has to be made familiar to the unio n and also known the objective, value, functions and the operations. This helps the em ployee to interact with senior staff members from various departments. SALARIES AND EMPLOYEE BENEFITS: Gross salary: A regular staff member in the Union will have a gross salary consisting of Basi c salary, Dearness Allowance, CCA, House Rent Allowance, and Conveyance Allowance. There a re special benefits given to few employees, like:
Shift allowance: Kousali Institute of Management Studies, Dharwad. 30
There are separate allowances given to employees working in different shift like : First shift Allowance Second shift Allowance Third shift Allowance Heat allowance: Separate allowance is given to those workers working near boilers and other equi pments. Cold allowance: Separate allowance is given to workers working in Defreeze or cold storage. Furt her there is Uniform code for every employee. The Union provides 2 pair of uniforms to the employees every year House interest: The employee working in the union can take a loan from other external sources an d the Union will pay half the interest on the capital per month. Other benefits: Canteen subsidy, Festival Advance, medical Allowance, surrender Leave. SHARED VALUES: These shared values include the mission and vision of the organization. It also includes objective values. Environment Policies etc. KMF, Dharwad has the mission to prov ide a lucrative market for farmers to sell their milk and to provide best milk to urba n customers. Its Vision is to produce more milk and milk Products in the forth-Coming years. KMF, Dharwad also follows environment Policies. The plant doesn t pollute the environme nt. The organization has its own Effluent Treatment Plant in its own Premises. The Efflu ents are properly dumped so that on environment hazards occurs. STRUCTURE: a. Organization structure Kousali Institute of Management Studies, Dharwad. 31
b. Sub-structure of various departments and their functions: Procurement and input department (structure) The Union carries on procurement by setting up-operative societies at village le vel. Later milk is collected in the Chilling Center. Milk collected from the milk center, i s first tested there are milk-testing equipments for this purpose. Then a survey on availability of t ransportation facilities and productive capacity of villages are conducted. If the marketable surplus is more than 150liters per day, a society is formed; further 10promeoters are selected f rom the village and are given the responsibility of collecting the capital for the society by se lling shares. Procurement is done twice a day and payment is made on the basis of percentage o f the content and SNF in the milk. After this, Milk is sent to Union else chilling center, whichever is near. At th e chilling center, milk is chilled up to 4degree Celsius. Later this chilled milk is sent t o Union in Insulated Tankers for further processing. The main function of this department is to procu re milk different areas throughout the year. The main function of P & I Department is to organize, supervise and operate village dairy co-operative societies and to procure more milk from villa ge societies. Other services provided are: Veterinary services to keep up the good heath of cattle through -Regular health Camps Emergency service round the clock First aid, Vaccination, Infertility Camp, Fodder Artificial Insemination facility for improvement of cattle breeds. Facilitating Training Programs regarding management of cattle Supply of Fodder to cattle. VISION OF THE DHARWAD MILK UNION: . Cleanliness in the Production House. . Total quality maintenance and making of Brand awareness. Kousali Institute of Management Studies, Dharwad. 32
. In the union Discipline is maintained. . Co-operation with other milk union and the sub unions. . Transparency in the processing. . Co-operative free of politics. . Respective each other opinion ideas and feelings. MISSION STATEMENT OF DHARWAD MILK UNION: Dharwad milk Union is commuted to provide maximum possible price for the milk supplied by its members and provided necessary inputs for the milk production while ensuring economic viability of the union and also committed to provide quality milk products to consumer and image as one of the most milk union of the co-operative dairy industry in the country. At DMU we Endeavour to satisfy the taste and nutritional requirements of the customers. Through excelle nce in marketing by DMU committed team, DMU are committed to offering quality products that provide best value for money. QUALITY POLICY OF DHARWAD MILK UNION: To ensure pure, hygienic milk and milk products through continuous improvement of quality standards. DMU has got ENERGY SAVING award for the production activities IN Achievement Category. FUTURE GROWTH AND PROSPECTUS OF DHARWAD MILK UNION: Procuring and selling 1 lack letters per day. Preparing for ISO-9001 certification. Marketing quality improvement. Kousali Institute of Management Studies, Dharwad. 33
Developing HACCP- hazards analysis and Critical Control Points. Getting export grade milk powder. OWNERSHIP PATTERN: DMU builds and runs under the co-operative institutions such as . District Co-operative Society.(DCS) . National Dairy Development Board.(NDDB) INFRASTRUCTURAL FACILITIES: Infrastructural facilities of DMU are as follows. . Security facilities. . Canteen facilities. . Shifts facilities-3shifts per day. . Heat allowance. . Cold allowance. DEPARTMENTS OF DHARWAD MILK UNION: 1. Purchasing Department. 2. Quality Control Department. 3. Production Department. 4. Procurement and Input Department. 5. Store Department. 6. Finished good and materials storage department. 7. Sales and Marketing Department. 8. Finance and Accounts Department. 9. Administration Department. INPUT REQUIRED PER DAY: Kousali Institute of Management Studies, Dharwad. 34
. Milk procurement up to 70,000 liters. . 5 to 6 lakh liters of water. . 10,000 units of electricity. . 4 to 5 tons of coal. . Generator in case of electricity failure and manpower. COMPETITORS OF INFORMATION: DMU has various competitors in the milk products market such as . Sri Krishna . Arokya . Spurthi . Datta . Bharath Dairy . Ram Rahim . Gopal . And the local milk suppliers STRENGTHS OF KMF: . Nandini enjoys good image. . Wide distribution network leads to regular and timely supply. . Milk processed is local milk, which reduces the transportation cost. . It enjoys highest market shares in the packed milk segment. WEAKNESSES OF KMF: . Poor retail serving and consumer grievance handling. . Recurring quality problem. . Lowest paying brand i.e. commission given by the company is less compared to other brands. .
Inadequate sales promotional activity. Due to bad smell that persists causes low sales. OPPORTUNITIES: . There is scope for developing in new area. . Availability of buffalo milk-improves market milk quality. . Predominant of loose milk segment-divide appropriate strategies. Kousali Institute of Management Studies, Dharwad. 35
THREATS: . No entry barriers for private players. . Low level of consumer awareness. . Persuade benefits of competing brand. THE DISTRIBUTION CHANNELS OF THE DHARWAD CO-OP MILK PRODUCER S SOCIETIES UNION LTD. The channel is well planned to suit the milk and milk products which perishes ve ry quickly. ROLE OF TRANSPORTERS IN THE MARKETING CHANNEL: Transporters play a very big role in all the channels. The milk union has made a round 64 routes to cover all the 4 districts. Transportation is outsourced to private par ties. Those with goods vehicle can participate in the tender process. Tenders are called once in every 2 years. The person whoever wants to operate in a particular route has to bid for that route. The person who quotes the lowest rate per kilometer for that routs is allowed to take the trans portation work for that route. The goods vehicles are loaded in the dispatch dock in the milk union and sent to the locations. The transporters deliver the goods while going on their assigned rout es to the agents, parlor owners, ATM centers, Day counters according to the instructions given by the marketing department and while returning back they collect the money and milk trays and re turn to the union. The milk union does not give goods on credit. Payment has to be made on t he day on which the goods are delivered to them. The transporters come back to the union a nd deposit their collection in the cash counter of the milk union. Dispatch dock Dharwad Karwar Hubli Haveri Gadag Kousali Institute of Management Studies, Dharwad. 36
WE CAN BROADLY CLASSIFY THE MARKETING SYSTEM INTO 4 CHANNELS: 1. Agency/ Agents. The channel is as shown above. The agents are located in almost all the areas. T hey distribute the milk and other products especially in the morning. There are 646 agents who cover all the 4 districts. The Agents will have to give the indents to the marketing d epartment as per the requirement as per the time notified by the marketing department. The dispatch s ection will load the transport vehicles with all the products as per the indent. Now once when th e goods are loaded it becomes the responsibility of the transporters to transfer the product s to the concerned agents. The Agents can also operate through these above shown channels. They can put the ir products in the retail shops such as provisional stores, bakeries, etc and share the retail margin with them. They can also make home delivery by hiring delivery boys. 2. Day counters. The channel is as shown above. They cover all the parts of the 4 districts. Ther e are around 254 day counters in 4 districts. These are the shop owners such as of pro visional stores, bakeries, etc who sell milk along with the other products they sell in their sho ps. The shop keepers will have to give the indents to the marketing department as pe r the requirement as per the time notified by the marketing department. The dispatch s ection will load the transport vehicles with all the products as per the indent. Now once when th e goods are Kousali Institute of Management Studies, Dharwad. 37
loaded it becomes the responsibility of the transporters to transfer the product s to the concerned agents. 3. MILK PARLORS The channel is as shown above. They are located in all the major educational ins titutes, Government hospitals, Courts, Bus stops etc in all the 4 districts. The Milk uni on takes the required permission from these institutes to set up the milk parlors and set up the shops. These are given to the people who are interested in managing them. The interested peop le will have to participate in the bidding process called by the milk union. The bidder who quot es high rent will be given permission to manage these parlors. He will have to pay the rent monthl y as per the rate quoted by him. The condition by the Milk union is that the Parlor will have to s ell only the products of KMF. The decoration, maintenance etc. regarding parlors is taken car e by the marketing department of milk union. No other products are allowed to sell. What ever the retail margin he gets is his profit. The Parlor owners will have to give the indents to the marketing department as per the requirement as per the time notified by the marketing depa rtment. The dispatch section will load the transport vehicles with all the products as per t he indent. Now once when the goods are loaded it becomes the responsibility of the transporters to t ransfer the products to the concerned Parlor owners. 4. ALL TIME MILK CENTERS. The channel is as shown above. They are located in all the major locations of th e city. They are called as ALL TIME MILK CENTERS. The person whoever is interested to se t up the ATM center has to search for such busy locations and contact the milk union with the proposal to start such centers. The milk unions marketing people will survey the area and give the permission to start such centers. A major part of the rent is paid by t he milk union. The union also pays a major part of electricity charges. The condition for the A TM owners is that they should sell only KMFs products. No other products are allowed to sell. What ever the retail margin he gets is his profit. The ATM owners will have to give the in dents to the marketing department as per the requirement as per the time notified by the mark eting department. The dispatch section will load the transport vehicles with all the p roducts as per the indent. Now once when the goods are loaded it becomes the responsibility of
the transporters to transfer the products to the concerned Parlor owners. Kousali Institute of Management Studies, Dharwad. 38
Milk Procurement (TKGPD) Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Avg 198788 2125 6 1834 9 2120 2 1980 7 2406 8 3161 6 41647 51219 50190 6089 3 5282 9 4653 8 36635 198889 2938 2 2924 1 2824 6 2681 3 2645 7 3308 3 42977 43513 37077 7695 0 6512 9 5675 5 41302 198990 2840 7 2403 1 2350 3 2313 2 2574 0 3087 6 39473 45302 42114 6259 7 5645 3 5191
4 37792 199091 2871 9 2655 2 3002 7 3185 2 3402 3 4129 6 49014 55932 59140 6570 7 5540 0 4951 4 43931 199192 4550 9 4188 1 4660 8 5111 8 4846 2 5271 0 60694 63207 61366 6476 0 5691 1 5220 1 53786 199293 4508 9 4583 4 5046 1 5436 5 5717 3 6649 2 77531 83025 90415 9222 6 8469 7 7897 7 68857 199394 7315 3 6578 2
7160 2 7202 8 6863 6 6967 0 77110 87168 83891 8301 8 7194 7 6470 0 74059 199495 6076 4 5675 6 5431 3 4831 2 4976 3 5138 5 62303 73842 71014 6306 6 5443 0 4827 1 57852 199596 6709 6 3875 3 3609 4 3341 7 3959 3 4881 4 58330 68447 65406 5648 3 4876 9 4301 5 50351 199697 3999 5 3611 2 3870 4 4447 4 4751 8
5535 7 65324 6 5713 4 5165 6 54146 199798 4596 7 3983 6 3882 4 4334 5 4525 4 5414 4 64305 9 7409 4 6625 3 59877 199899 5782 0 5480 9 5393 7 5553 6 5832 4 6553 1 72830 3 6410 3 6631 1 65790 199900 5448 0 5365 8 5665 9 5341 2 5301 9 5802 5 64414 0 5577 9 5142
77061 72314 6410
77424 84221 8485
85620 81773 7288
75783 70608 6167
8 59078 200001 4586 8 4754 3 4804 7 4978 3 5278 1 6020 0 69520 82200 74931 6577 7 5862 7 5592 5 59229 200102 5208 9 5141 9 5037 2 5042 3 5248 9 6104 3 77987 86527 77947 7309 7 6690 7 6079 7 63406 20025445 5009 5530 6221 5838 6492 65865 73829 67078 6677 5984 5534 61162 Kousali Institute of Management Studies, Dharwad. 39
03 6 4 0 9 0 0 5 0 6 200304 5022 4 4823 1 4321 9 4278 0 4351 7 4992 0 55421 69333 68689 7142 5 6903 9 6677 5 56548 200405 6117 5 6016 0 6522 0 6825 1 6469 0 6881 9 74759 69291 68477 6869 7 6751 1 6515 8 66851 200506 6445 7 6429 7 6909 6 7410 9 7897 2 9088 4 10365 1 11251 9
10347 9 9114 3 8016 0 7552 8 84025 200607 6823 9 6293 2 6766 5 7406 8 7241 6 7576 3 83033 88497 81517 7614 9 7199 1 6704 7 74110 200708 5938 0 5827 2 5735 2 6103 8 6453 1 6936 2 78763 84826 81216 7200 6 6801 4 6175 6 68043 200809 6749 6 7319 5 7251 6 6540 5 5962 8 6960 9 75705 79246 79336 8147
0 7313 5 7162 3 72364 200910 7251 8 7274 6 72632 DHARWAD MILK UNION LTD., Milk Sales Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Avg 198788 3058 7 3167 2 3234 6 3715 1 3984 9 4184 0 4019 4 4108 2 4081 9 4252 6 4514 6 4689 5 39176 198889 4850 7 5099 0 4955 0 4869 2 5484 0 5533 3 5111 4 5231 5 5832 7 5369 2
5625 8 5685 4 53039 198990 5949 8 6314 4 6032 4 6285 6 6335 2 6309 3 6132 1 6184 1 6203 5 6294 4 6867 5 6338 2 62705 199091 6916 8 6781 2 6529 9 6458 7 6473 9 6476 8 6264 4 6319 7 6385 1 6335 7 6257 8 6473 1 64728 199192 6594 4 5914 8 5918
7 6069 5 5555 0 5987 9 6140 8 6393 7 6345 1 6143 0 6240 4 6009 0 61094 199293 5428 8 5243 8 5632 6 5760 6 5631 3 5533 3 5147 4 4995 1 4949 1 4987 9 5177 4 5438 2 53271 199394 5634 3 5923 9 5762 9 5607 1 5392 8 5361 0 5109 9 5204
8 5246 9 5189 8 5345 7 5450 2 54358 199495 5347 8 5573 6 5431 1 5326 2 5284 9 5351 3 5204 3 5369 8 5334 6 5250 8 5293 6 5560 3 53607 199596 5492 1 5572 5 5222 9 5084 5 5382 6 5496 1 5300 1 5416 1 5360 5 5404 9 5727 9 5671 3 54276 199697
6077 5 6216 6 5967 4 5902 8 5925 9 5823 8 4988 7 4877 7 4744 4 4608 4 4697 7 5094 7 54105 199798 4638 2 4817 8 4802 5 4874 6 5032 7 5326 4 5293 5 5190 1 4828 1 5082 6 4877 4 4943 6 49756 199899 4942 4 4493 6 4997 3 4951 6 5007 7
5028 9 4826 4 4842 0 4950 9 5142 3 4874 2 5207 2 49387 199900 5300 8 5251 2 5233 1 5245 5 5322 7 5297 2 5250 8 5196 7 5292 7 5444 9 5459 2 5706 4 53334 200001 5836 0 5890 9 5894 3 5878 4 6079 3 6001 4 5846 7 5802 3 5881 0 5905 4
5593 6 5635 3 58555 200102 5518 7 5654 8 5439 1 5414 6 5421 3 5268 6 5089 4 5065 8 5259 4 5153 8 5390 4 5419 0 53518 200203 5518 7 5451 4 5821 9 5205 5 5199 1 5280 6 5253 1 5303 0 5487 9 5371 2 5615 5 5633 3 53762 Kousali Institute of Management Studies, Dharwad. 40
200304 5816 2 5943 5 5807 5 5634 7 5645 9 5457 1 5429 1 5583 3 5425 8 5248 2 5159 7 5288 4 55366 200405 5381 7 5282 6 5073 1 4966 2 4966 3 5003 0 4866 0 5134 3 5111 3 5164 6 5199 3 5320 9 51224 200506 5525 6 5631 2
5435 7 5331 4 5260 2 5267 0 5188 4 5289 5 5168 9 5160 2 5422 1 5531 5 53510 200607 5212 7 5338 6 5162 1 5139 0 5241 4 5252 0 5298 1 5197 6 5218 2 5354 7 5450 1 5534 2 52832 200708 5871 8 5936 3 5764 2 5735 5 5802 4 5777 7 5859 6
5996 6 5888 9 5783 5 5931 1 6053 6 58668 200809 6178 1 6008 4 5818 6 5979 6 6197 8 6320 9 6418 5 6445 9 6638 2 6504 9 6902 9 6990 0 63670 200910 7135 8 7404 6 72702 Dharwad Co-operative Milk Producers Union Ltd., Dharwad. Product sales statement during 2008-09 April08 May-08 June08 July-08 August08 Sept08 Oct-08 Nov-08 Dec-08 Feb-09 March09 Cum. Total Sales 2008-09 Product Name Total Total Total Total Total Total Total Total Total Total Total T otal Curds 200 Gm (Pkts)
29543 0 305427 15532 7 163341 165151 19145 1 264127 23753 7 241731 245860 311756 2808926 Curds 500 Gm (Pkts) 84808 73585 34412 41370 43912 45958 56717 54560 59159 57144 74955 675065 Bulk Curds in Kgs 27885 18638 85175 114351 88634 91710 21104 82061 88310 88607 8 9905 869214 Pot Curds (250 gm Pots) 24897 26786 16292 9243 9195 8871 13222 12734 15067 19843 26400 198721 Tetra SFM 200 Ml(Pkts) 7424 5168 1320 2087 779 972 1350 6344 5157 5883 3651 46000 Tetra B Milk 200 Ml(Pkts) 0 0 0 0 0 0 0 0 0 0 0 0 200 Ml Sweet Lassi(Pkts) 45043 40683 8987 7710 6826 10140 22518 24388 17522 35130 51623 29153 1 200 Ml Massala Lassi(Pkts) 83287 70401 10878 7901 8195 19448 27423 22231 23401 65086 106543 470 273 200 Ml FM Sachets(Pkts) 1000 200 0 0 1200 0 0 125 0 0 0 2525 200 Ml SFM Bottles 11746 12499 5200 3548 4852 4500 9985 0 0 10900 11898 82928 Cream in Kgs 0 0 0 0 0 0 0 0 0 0 0 0.00 Kunda 45 30 117 445.25 398.5 408.75 453.25 260 334.75 240 203.25 3247.25 Khova in Kgs 634 117 128 182.50 209 157.5 254 300.75 471.25 373.5 314 3299.75 Badam Powder 200 Gm(in Kgs) 143 97 103.6 112.20 119.2 121.6 119.8 134.4 170.2 144.4 149.2 158 4.20 Badam Powder 500 Gm(in Kgs) 4 5.5 9.50 Badam Powder 10 Gm(in Kgs) 15 11 13 14.00 15 10 19 14 27 16 13 187.00 200 Gm Jamoon Mix(in Kgs) 51.8 33.8 41 36.40 47 57.6 30.4 75.8 77.4 75.6 55 645.40 Mysore Pak 250 Gm(in Kgs) 116.75 127.75 111.75 169.75 120 114.75 120 205.25 253 220.25 152.5 18 42.50 Bulk Paneer 980.3 870.25 674 623.00 693.5 615.5 1010.25 1255 1628.5 1049 1199.5 11764.80 Paneer 200 Gm (inKgs) 150 250.6 237.8 251.00 179.4 240.4 60 265.8 208.4 226.4 25 4 2409.20 250 Gms Dwd Peda(in Kgs) 14448 14840.8 16469 15800.25 14047 13132 15267.3 11912 13093.3 1143 0.3 13780.3 167841.25 Kousali Institute of Management Studies, Dharwad. 41
Butter 10 gm packkgs 305 275 343 249.00 182 861 352 61 283 358 205 3505.00 Butter 100 gm pack-kgs 306.6 748.2 2562 267.20 180.1 571.9 29.9 402.1 485.2 1200.8 188.3 8195. 70 Butter 500 gm U/Spack-kgs 4447 9888.5 9027.5 6371.00 5448.5 4948 4757 3337 4513. 0 10851 5676.5 73446.50 Butter 500 gm Spack-kgs 0 2792 4210 2825.00 1748.5 6402.5 1083.5 1436 6581.5 979 .5 1448.5 34584.50 Ghee 1000 MlLTRS 5972 1561 965 942.00 1421 1044 1630 167 0 909 2 15236.00 Ghee 500 Ml-LTRS 2542.5 2328 3232 2059.00 2915.5 2324.5 2768.5 686.5 1347.5 2381 .5 1659.5 26654.00 Ghee 200 Ml-LTRS 1992.8 1258.6 2997.4 1877.60 1576.2 1415.6 1847.8 474.2 313.6 9 77.8 1105.2 16564.20 Ghee 15 Kg TinKgs 495 525 600 945.00 420 0 30 345 195 240 75 3945.00 Ghee in Bulk 0 0 0 0.00 0 0 0 0 0 0 0 0.00 SMP 1 Kg Pack 1301 215 0 1946.00 473 584 1069 680 605 575 628 8587.00 SMP 25 Kg 0 400 275 175.00 0 25 200 25 0 0 0 1100.00 SMP Sweep 0 0 1850.00 Address Dharwad District Co-operative Milk Producers' Societies' Union Ltd Product Dairy, Lakkammanahalli Industrial Area DHARWAD - 580 004. Karnataka Phone 0836-2467603 / 2468380 / 2467643 Fax 0836-2468268 E-mail dharwarnin@satyam.net.in Kousali Institute of Management Studies, Dharwad. 42
METHODOLOGY: Collection of data and interpretation: Principles of marketing or marketing research cannot be accurately applied to da ily usable consumer product like milk. It has wide fluctuations to demand movement, and consumer s choice because customer prefers milk and not a particular brand in time of need. This means that the consumer should have total brand awareness to stick up to a popular brand. This has an impact on dealers and retailers also. The brand and its products are first segmented their market to satisfy the deman d of consumers who always need a change in their consumption of milk. The basic benef its are gender and the income groups but market is not segmented as per the segmentation done by the company because consumers of milk don t go for a particular brand for particular r eason. Location : Hubli-Dharwad cities. Sample size : 100 respondents. Instrument Used : Self administered questionnaire Sampling Techniques Used :Convenient Sampling Statistical Tool : Tables, Pie Charts and bar charts are used in Analyzing the d ata. Collection of primary data: Primary data is that type of data which includes the first hand information whic h is being collected from the respondents through observation or through direct communicati on with respondents in one form or another or through personal interviews. In this research personal interviews and survey were conducted to get primary da ta. The survey will be conducted in the geographical region of Hubli-Dharwad cities. Respondent s area was divided on the basis of geographically. Kousali Institute of Management Studies, Dharwad. 43
The main regions for survey were Hubli and Dharwad cities. I was divided each ci ty into 5 sub regions which are North, South, East, West and central. Collection of secondary data: Secondary data means the data which have already been collected and analyzed by someone else. The secondary data is collected through the various sources like company s magazin e and broachers the past projects done on the branding. The other sources are internet , pamphlets, relevant magazines, journal et Table # 1: Surveyed respondents genders: Sl. No 1 Gender Male No.of Respondendents 22 2 Female 78 Total 100 Source: Primary data INTERPRETATION: Percentage 22% 78% 100% The table shows that in the survey the respondents are 22% males and 78% respondents are females. Table # 2: Age groups of the respondents: Sl. No 1 2 3 Age Groups 15-25 25-35 35-45 No.of Respondendents 18 26 34
Kousali Institute of Management Studies, Dharwad. Percentage 18% 26% 34% 44
4 45-55 14 14% 5 Above 55 8 8% Total 100 100% Source: Primary data INTERPRETATION: Above table shows that 18% of respondents are belonging to the age group of 15-25, 26% of respondents belongs to 25-35 age group, 34% of respondents belongs to 35-45 age group, 14% and 8% of respondents are belonging to the respectively 45-55 and above 55 age groups. Table # 3: Occupation of the respondents: Sl. No Occupation 1 Students 2 Business man 3 Working in private org 4 Government job 5 House wife Total Source: Primary data INTERPRETATION: No.of Respondendents 6 12 17 8 57 100 Percentage 6% 12% 17% 8% 57% 100% It has been observed form the above table 6 respondents are belongs to students, 12 are from business man, 17 from private organization workers, 8 respondents are government employees and major part of the respondents are belonging target customers are housewife.
Table # 4: Rrespondents monthly income groups: Sl. No Monthly income group 1 Less than 10,000 2 10,000-15,000 3 15,000-20,000 No.of Respondendents 19 26 38 Kousali Institute of Management Studies, Dharwad. Percentage 19% 26% 38% 45
4 20,000-30,000 13 13% 5 Above 30,000 4 4% Total 100 100% Source: Primary data INTERPRETATION: Among the respondents surveyed, 19% of them are have income group of the less then 10,000 rupees per month, 26% of them belongs to 10,000-15,000 per month income group,38% and 13% of respondents are belonging to respectively to 15,000-20,000 and 20,000-30,000 per month income group and the last 4% of the respondents are belongs to above 30,000 per month income group. Table # 5: Rrespondents family member: Sl. No No.of family 1 2 3 4 5 members 2 3 4 5 More than 5 Total Source: Primary data No.of Respondendents 12 17 35 23 13 100 Percentage 12% 17% 35% 23% 13% 100% INTERPRETATION: Among the respondents surveyed, the respondents
family strength is 12% of them are have family member of the 2, 17% of them belongs to 3 member family group,35% and 23% of respondents are belonging to respectively to family members are 4 and 5 members group and the last 13% of the respondents are having a more than 5 family members group. Table # 6: Rrespondents per day consumption of milk : Sl. No Per day consumption No.of Respondendents Percentage 1 Less than liter 8 8% 2 liter 23 23% 3 1 liter 42 42% 4 2 liters 16 16% Kousali Institute of Management Studies, Dharwad. 46
More than 2 liters 5 11 11% Total 100 100% Source: Primary data INTERPRETATION: It has been observed form the above table 8% respondents are consumption of milk per day is less than liters most of the this group is belonging in to the 2 family members, 23% are consumption is liter per day , 42 are consume the 1 liter per day, 16% of respondents are consuming the 2 liters per day. And the 11% respondents are consuming the milk per day more than 2 liters. Table # 7: Rrespondents presently using milk : Sl . No Brand No.of Respondendents Percentage 1 Nandini 48 48% 2 SriKrishana 19 19% 3 Arokya 23 23% 4 Spurti 06 06% 5 Other (Datta,Gopal,Bharat,RamRahim ) 04 04% Total 100 100% Source: Primary data INTERPRETATION: Among the respondents surveyed, the respondents are presently using their own selective brand milk. In the respondent 48% of them ar e consume the presently a Nandini brand milk. And 19% of respondents are go throw the Sri Krishana milk .23% are consume the Arokya Milk, 6% and 4% respondents are using the respectively Spurti and other milk brand and local mil k.. Table # 8: How many cunsumers are loyal to the Nandini Milk : Sl. No Opinioun No.of Respondendents Percentage 1 Yes 43 43% 2 No 57 57%
Karnataka Milk Federation, Dharwad Total 100 100% Karnataka Milk Federation, Dharwad Total 100 100% Source: Primary data INTERPRETATION: It has been observed form the above table The 43% of respondents are loyal to the Nandini brand milk and the last finding the 48% of the respondents are presently using the Nandini brand milk but among the 48% of respondents continue or in the fetcher 5% of the respondents are not loyal to th e among the Nandini brand milk. and the remaining 57% of respondents are not loyal to Nandini brand milk. Table # 9:Among three brand of Nandini milk the respondents favorite brand is: Sl. No Various brands in Nandini No.of Respondendents Percentage 1 Nandini Toned 22 22% 2 Nandini Standard 32 32% 3 Nandini Shubham 46 46% Total 100 100% Source: Primary data INTERPRETATION: Among the respondents surveyed, the respondents are favorite bands among three brand of Nandini milk 22% respondent say that they go for a Nandini Toned milk, 32% of respondents are say that their favorite brand i s Nandini Standard and the remaining 46% respondents favorite brand is Nandini Shubham. Table # 10: Purpose of using the Nandini milk: Kousali Institute of Management Studies, Dharwad. 48
Sl . No Purpose No.of Respondendents Percentage 1 Direct consumption 18 18% 2 Tea/ coffee 53 53% 3 Curds 20 20% 4 Other purpose 09 09% Total 100 100% Source: Primary data INTERPRETATION: It has been observed form the above table 18% respondents are consumption purpose of using milk for the direct consumption, 53% are consumption purpose of using milk for the Tea/ coffee , 20% are using for a curd making and 9% of respondents are using for other propose. Table # 11: Respondents while purchasing Milk factors are consider: Sl . No Factors No.of Respondendents Percentage 1 Brand name 10 10% 2 Price 14 14% 3 Thickness 26 26% 4 Long shelf life 32 32% 5 Attractive packing 8 8% 6 Others (Pure, Fat content, Easy availibility ) 10 10% Total 100 100% Source: Primary data INTERPRETATION: It has been observed form the above table 10% respondents are while purchasing Milk Brand name was consider, 14% are consider the Price, 26% of respondents are considering a Thickness of the milk, the meager of respondents are wile purchasing milk they consider a Long shelf life, and 8% of respondents are consider a Attractive packing and the remaining respondents are 10% are consider a pure, Fat contents, Easy availability.. Table # 12: Awareness of the NandiniProducts : Kousali Institute of Management Studies, Dharwad. 49
Sl. No Opinioun No.of Respondendents Percentage 1 Yes 94 94% 2 No 6 6% Total 100 100% Source: Primary data INTERPRETATION: Among the respondents surveyed, the respondents are know about the Nandini product are 94% of respondents are say yes and the remaining 6% of respondents are know about the Nandini milk but they don t know about the other Nandini products. Table # 13: Sources are help to come to know about Nandini Products? Sl . No Sources No.of Respondendents Percentage 1 Friends or Neighbors 19 20% 2 Agents 8 8% 3 Banners 25 27% 4 Wall painting 29 31% 5 Meadia (TV, Radio or News papers) 13 14% Total 94 100% Source: Primary data INTERPRETATION: Among the respondents surveyed, the respondents are known about the Nandini products are 94% of respondents are say yes. In this known category I Question to the respondents how to know about the Nandini Products. The 20% of respondents are known to the friends and the Neighbor hoods, 8% of respondents are know through to agents, 27% of respondents are known to a banners and the reaming 31%and 14% of the respondents are respectively know about the Nandini product through the wall painting and media. Kousali Institute of Management Studies, Dharwad. 50
Table # 14: Do you get above product whenever you ask in the shop? Sl . No Opinion No.of Respondendents Percentage 1 Yes 57 61% 2 Some time Yes 20 21% 3 No 17 18% Total 94 100% Source: Primary data INTERPRETATION: It has been observed form the above table 61% respondents are satisfied with a they ask in the shop for Nandini product. 21 % of consumers are some time get Nandini product in all shops and the remaining 17% of respondents are not satisfied with the marketing of Nandini product are not get it so easily. Table # 15: Respondents while purchasing Nandini products factors are consider: Sl . No Factors No.of Respondendents Percentage 1 Availability 10 10% 2 Price 14 14% 3 Taste 22 22% 4 Quality 30 30% 5 Attractive packing 8 8% 6 Adertisement 16 16% Total 100 100% Source: Primary data INTERPRETATION: It has been observed form the above table 10% respondents are while purchasing Nandini Milk products availability consider, 14% are consider the Price, 22% of respondents are considering a Test of the milk produc t, the meager of 30% respondents are wile purchasing Nandini milk product they consider a Quality , and 8% of respondents are consider a Attractive packing and the remaining respondents are 16% are consider a Advertisements. Kousali Institute of Management Studies, Dharwad. 51
Table # 16s: Are you satisfied with the service given by the KMF ATM s and Parlor? Sl . No Criteria No.of Respondendents Percentage 1 Highly satisfied 4 4% 2 Satisfied 27 27% 3 Neutral 47 47% 4 Dis satisfied 14 14% 5 Highly dis satisfied 8 8% Total 100 100% Source: Primary data INTERPRETATION: Among the respondents surveyed, the 4% of respondents are highly satisfied with service providing by the KMF and there ATM s or Parlor. The 27% of respondents are satisfied with a service given by KMF, 47% of respondents are Neutral satisfied with a KMF service or Availability ,and 14%and 8% of the respondents are respectively Dis satisfied and Highly dis satisfied wi th the service given by the KMF and their ATM s or Parlor. FINDINGS IN THE ORGANIZATION: Nandini products have a good brand image in the Market. . Pricing strategy of Nandini is appreciated by its customers. . Proper training programs are going on from past few years. . Trade union is in active. . The security in the Production house and the DMU need to be improve. . Nandini is started with customer contact programs in order to get first hand fee dback from its customer and also to improve its products. . The various private brands have been trying to give a really tough competition b y giving the agents high trade margins. . In the DMU the co-ordination between the subordinate is appreciable. . DMU has a waste area of operation which is geographically spread and which leads
high procurement and distribution charges. . Lack of consumer awareness about the wide range of products sold. . The dealers wants only more commission because they also suffer same problem wit h other brands also but they complains with us only. Kousali Institute of Management Studies, Dharwad. 52
. The organization is playing an important role in developing the economic viabili ty of the villages. . The powder making plant has taken an vital role in Dharwad Milk Union. . In some cases it is proven that DMU also not solved the problems on the spot bec ause it is not allows a single person to take decision because this is a co-operative se ctor. . Another important problem is the under utilization of the resources available. T he plant capacity utilization of DMU is very less which is leading the organization to lo ss. The various machineries install must be run even when quality of milk handled is les s. This adds up a huge unwanted expense to DMU. SUGGESTIONS . The retailers and dealers should be satisfied with commission and schemes so that they can improve the sales in the market. . The company should come up with new products with different varieties and attributes to attract the customers. . To advertise about all the products in the market. . The organization can build good infrastructure better than these like maintaining good garden etc. . If the company wants to restart the production of Double Toned Milk , firstly it has to provide sufficient knowledge and awareness about the attributes of products as compared to others. Kousali Institute of Management Studies, Dharwad. 53
CONCLUSION It was an exciting experience to me working with DMU Dharwad. From this project I learnt about the marketing tactics used by Dharwad Milk Union. Dharwad Milk Union is a reputed organization which has developed its goodwill in the market to compete with other famous brands such as Sphurti, Arokya, Srikrishna e tc. It has to adopt modern technology in the production process and can do better marketing co mpared with others. It has to increase the rate of commission payable to its agents or deale rs or retailers. DMU is functioning well for the social as well as economical upliftment of the r ural population. To survive in the market the company needs to adapt an aggressive marketing poli cy as of competitors. Last but not the least I would like to conclude DMU as good organization to work as well as to interact with people. All the workers and members of the union nicely motivated me. Kousali Institute of Management Studies, Dharwad. 54
The Hubli Dharwad retailers and hotel owners co-operated well and supported me i n completing and making this project a successfully. RECOMMENDATIONS . The retailers and dealers should be satisfied with commission schemes so that they can improve the sales in the market. . The company should come up with new products with different varieties and attributes to attract the customers. . The advertise about the entire product line in the market. . The organization can build good infrastructure better than these like maintainin g good garden. Kousali Institute of Management Studies, Dharwad. 55
LEARNING EXPERIENCE GAINED IN THE KMF 1. Got complete knowledge of quality testing. 2. Method of maintaining accounts in proper manner. 3. Learnt about the marketing strategy and sales promotion. 4. To know about the types of milk and how can it will be stored in the cold sto rage. 5. Proper manner of maintaining punch cards and every time alert security center s. 6. Learnt about the distribution channels it contains wide area of networking also speed of operation. Kousali Institute of Management Studies, Dharwad. 56

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Karnataka Milk Federation, Dharwad

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