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Introduction

   Need

   Scope

 Objectives

Methodology

Limitations




     1
INTRODUCTION



One must have a contemporary understand of this dynamic world to

survive or proper therein. Never in the past has the role of manager in India as

crucial and exciting as now. The ongoing economic reforms programme has

created infinite opportunities. There has been an increase in milk income gradually

development have broadened the knowledge of consumers. They have now

become choosy resulting in winners & looser at the same time winners those who

monitors needs, identifies opportunities and create value. It is the market

place not the factory that ultimately determines which company will succeed.

Marketing is practiced not only by manufacturing concern & their channel

members but all kinds of individuals and organization. No politician can get the

required votes to win and no” r e s o r t ” t h e n e e d e d t o u r i s t t o f l o u r i s h

w i t h o u t d e v e l o pi n g a n d c a r r yi ng o u t t h e s o u nd marketing plans.

Authentic market practice is not the art of selling what you make as much as

knowing what to make. It is the art of identifying and understanding customer‟s

needs and coming up with solution that satisfies them and produces riches for

firm‟s profitability.




                                               2
As we all know, future is always uncertain. More precisely when there is volley of

brilliant competitors and each wants to be the market leader. So in the light of

intense competition satisfaction through product innovation maintaining the

standard quality their in, failing which no amount or deal of promotional

measure or scheme can compensate at length. Competitive forces have compelled

the companies to focus on specific segment of the market with frequent product

innovation and rather new products and launching thereof with greater confidence.

The present study gives special emphasis on the various strategies to be adopted by

Visakha to c o u n t e r H e r i t a g e s a l e s i n Vi s a k h a p a t na m. T h e e n t i r e

s t u d y h a s b e e n d i v i d e d i n t o c h a p t e r s a n d further subdivided into

segments from each dealing with a separate aspect in a simple and lucid

style and clarification has been given top priority throughout the project




                                                3
NEED FOR THE STUDY



Consumer preference study programs help in marketing the product. Marketers
can be satisfied with the maximum consumers for the product if they study the
preference of consumers. Here my survey deals with the consumer‟s preference in
the utilization of milk via highway in Visakhapatnam dist.

In early days consumers went to milk centers. They stood in a line or queued to
buy the product. But the scenario has changed drastically with the market being
fledged by a wide variety of brands and the volumes and prices, desired and
affordable by the consumers under such circumstances it is that company which
distinguishes its product from that of competitors is bound to succeed. The
company has to mould its product to suit the consumer, his needs, wants, place of
purchase, personality and so on.

Milk is obtained from different chilling centers, collected and pasteurized, excess
amount of fat is removed in the processing and maintaining required amount of
fat.

Milk contains fat, vitamins and mineral. Milk is consumed regularly in each and
every house. Milk is complete food for infants and is partially taken by adults also
either directly taken as milk or indirectly taken as tea or coffee. How ever the
importance of milk may be briefly mentioned here and the preference attached to
its study as a subject for the project work may be self – explanatory.




                                         4
SCOPE OF THE STUDY



As learning is a human activity and is as natural, as breathing. Despite the fact that

learning is all pervasive in our lives, psychologists do not agree on how learning

takes place. How individuals learn is a matter of interest to marketers. They want

to teach consumers in their roles as their roles as consumers. They want consumers

to learn about their products, product attributes, potential consumers benefit, how

to use, maintain or even dispose of the product and new ways of behaving that will

satisfy not only the consumer‟s needs, but the marketer‟s objectives.

The scope of my study restricts itself to the analysis of consumer preferences,

perception and consumption of Cadbury and Nestle Chocolates. There are many

other brands of chocolates available but my study is limited to two major players

of chocolates leaving behind the others. The scope of my study is also restricts

itself to Mumbai region only.




                                          5
OBJECTIVE OF THE STUDY

The most important objective of the project is that it is obligatory on the part of the
student of M.B.A. programme to undergo the convention of the business
administration in the partial fulfillment of M.B.A. degree besides, project
study is a sort of practical training of eight weeks thus the students are
benefited by undertaking such a study as it helps organization in
overcoming administrative, financial, marketing and other problems
whatever they may be interested in for the sake of simplicity the
objectives of this study can be classified under three heads:


PRINCIPAL OBJECTIVES
      To find out the various strategies to be adapted by Visakha to counter milk
      sales of Heritage in Visakhapatnam.
      To find various ways to increase Visakha milk sales in Visakhapatnam.
      To discover the various factors which hurdles people to take Visakha milk.
      To identify various factors which motivates people to use Visakha milk.
      To discover the main reason beyond shifting of customers from
      Visakha milk to other milk.
      The other objective is to know about the customer satisfaction level
      associated with the product and the customer preference level.
      To increase customer satisfaction and recapture the market share by
      fulfilling the customer needs.
      To study the factors affecting the consumption pattern.




                                           6
METHODOLOGY

COLLECTION OF DATA

The data was collected from two different sources

PRIMARY DATA


The primary data has been collected with the help of a questionnaire, prepared
specially for the retailers and consumers to be administered for their responses
      Questionnaire
      Direct Interview.


SECONDARY DATA


Secondary data is what the researcher collects from different sources. It also helps
to get elaborate information to do the research.


Secondary data has been collected from
      Books
      Magazines
      Internet
      Company annual reports
      Research papers
      Govt. Publications
      Past Records and Files
      Journals and periodicals pertaining to different brands and segments of milk.



                                          7
LIMITATIONS
Limitations of study and difficulties encountered:


N o t h i n g i n t h i s u n i v e r s e i s f r e e f r o m L i mi t a t i o n s a n d p r e s e n t
p r o je c t i s n o t a n exception to it. Due to certain restrictions on the part
of potential customers as well as actual customers and Suppressed and
biased responses from them, appropriate figure for relevant data and their
interpretation precisely could not be ascertained,
       Due to time and budgetary constraint, the sample size was restricted.
       The salesmen at the outlets showed their discontent with the tight schedule.
       Most of the retail respondents showed their discontent with the company for
       its unsystematic distribution, replacement, short supply, incentives, margin
       and so they were reluctant to talk about the company.
       People of the region were not conscious about the survey, so they
       were not much supportive.
       Nearly about 30% population of the city takes the service of servants to
       bring their milk from market and reason for their brand selection was not
       known.
       M a n y p e o p l e d o n o t k n o w t h e ms e l v e s wh y t h e y u s e a n y
       p a r t i c u l a r b r a n d a s t h e i r answer was “we use ……brand because
       we like it” so the actual reason behind their l i k i n g wa s n o t
       c o n f i r me d .
       Many         retailers       do     not        like   to     interact       because         of
       t h e i r business. People are not interested to fill questionnaire as
       they think it as wastage of time, this is again because of less scope of
       research in India.

                                                  8
Industry profile

Company Profile




    9
INDUSTRY PROFILE

INTRODUCTION

Milk producing animals have been domesticated for thousands of years. Initially,
they were part of the subsistence farming that nomads engaged in. As the
community moved about the country, their animals accompanied them. Protecting
and feeding the animals were a big part of the symbiotic relationship between the
animals and the humans.

Slowly people in agricultural societies owned dairy animals that they milked for
domestic and local (village) consumption, a typical example of a cottage industry.
The animals might serve multiple purposes (for example, as a draught animal for
pulling a plough as a youngster, and at the end of its useful life as meat). In this
case the animals were normally milked by hand and the herd size was quite small.
This small cottage industry took the shape of Dairy farming. Dairy farming is a
class of agricultural or an animal husbandry enterprise, for long-term production of
milk, usually from dairy cows but also from goats and sheep, which may be either
processed on-site or transported to a dairy factory for processing and eventual
retail sale. Dairy farming has been part of agriculture for thousands of years. Until
the late 19th century, the milking of the cow was done by hand. The first milking
machines were an extension of the traditional milking pail. With the availability of
electric power and suction milking machines, the production levels increased
tremendously. With industrialisation and urbanisation, the supply of milk became a
commercial industry, with manufacture of many by products like Cream and
butter, Skimmed milk, Casein, Cheese, Whey, Yogurt, Milk powders etc.




                                         10
DAIRY INDUSTRY IN INDIA

Indian dairy Industry - a profile

The Dairy Industry in India made rapid progress, particularly during the last two
decades. Today, INDIA occupies first position in milk production in the world,
surpassing the U.S. Today, India is 'The Oyster' of the global dairy industry. It
offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on
one of the world's largest and fastest growing markets for milk and milk products.
A bagful of 'pearls' awaits the international dairy processor in India. The Indian
dairy industry is rapidly growing, trying to keep pace with the galloping progress
around the world. The liberalization of the Indian economy beckons to MNC's and
foreign investors alike. The credit definitely goes to operation flood, which has
played a key role in the development of dairying.

The employment potential of Indian Dairy sector is substantial. This sector
provides additional income and generates job opportunities for 180 million farmer
families. More than 70% of marginal farmers and labourers maintain dairy animals
to supplement their incomes.

In India, there are 10.1 million farmers who are members of 77,000 village Dairy
Co-operative Societies, each of which is affiliated to one of 170 district and
regional Co-operative Unions, which in turn are a part of state Co-operative
unions, which in turn are apart of a state Co-operative Marketing Federation. The
Co-operative sector has contributed significantly for the success of White
Revolution in India. There are more than 97,000 milk Co-operative Societies in
264 districts.




                                        11
This sector is growing at the rate of 6.5% per annum. The first large scale and
systematic breakthrough in Dairy operation milk producers union was at ANAND
(ANAND MILK UNION LIMITED) , Gujarat abbreviated to “AMUL” which in
vernacular means HIGHLY VALUABLE or “BEYOND ALL PRICES”.

INDIAN DAIRY CORPORATION (IDC):

The INDIAN DAIRY CORPORATION (IDC) was set up under companies Act
on 13th Feb 1970. It is a government of India under taking. The immediate need to
set up IDC was to handle the “OPERATION FLOOD”. It became mainly a
financing – cum promotional agency of central government.

OBJECTIVES:

       To promote dairy industry in the country.

       To assist the state government and other organization including co-
       operative societies interested in the promotion of dairy industry to meet the
       requirement of milk & milk products.

       To provide a package of technical inputs for enhancement of milk
       production.

       Resettlement of city based cattle in the rural areas.

       To assist in expanding the capacity and operation of existing dairies in big
       cities and rural areas.

       To assist development of allied industry required to meet the needs of dairy
       development.




                                         12
DAIRY INDUSTRY IN ANDHRA PRADESH:

The milk producers have faced a lot of problems in the process of production and
marketing of milk namely improper transport facilities, poor technology and
absence organized system of processing, marketing and pricing. It was at this
context, that the Govt. of A.P. has viewed to continue a „DAIRY
DEVELOPMENT CORPORATION‟ to safeguard the interests of milk producers
and ensuring adequate supply of flush milk at a reasonable price to the urban
consumers. As a result the „APDDCF‟‟ came into the existence on 2nd April, 1974.
A.P. has an excellent potential for milk production with the progressive farmers
who are responsive to the new technology and scientific practices.




                                         13
DAIRY DEVELOPMENT PARTICULARS

The dairy development in A.P. according to 2008 figures has been presented in the
following table.

       Milk products factories                                   07

       District dairies                                          10

       Milk chilling centers                                     48

       Milk collection centers                                 1400

       Village milk producers co-operative societies          5200

       Milk collection routes                                   267

       Milk producers                                        57200

       Villages covered for collection of milk                10000

       Milk consumers                                        650000

       Cattle feed plants                                          6

       Women Members in Unions                                 5000

       Cash paid to milk producers                         62 Crores




                                        14
A.P. DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION (APDDFC)

APDDFC was constituted on 2nd April in 1974 with an aim to implement
OPERATION FLOOD – 2 programme through active involvement of producers in
organizing milk production, procurement, processing and marketing a three – tier
co-operation structure as per the national policy of government of India. The
“Three – Tier” system consists of primary unions at district milk shed level and
federation at state level. Indian Dairy Development Corporation owns the
responsibility of implementation of operation flood programmes, which provides
money assistance of up to 70% towards loans and 30% as subsidy.

OBJECTIVES:

    1. Development of infra – structure for procurement of milk in rural areas of
       A.P. and ensure assured market for milk products throughout the year as
       well as the best remunerative prices.

    2. Fulfill the growing needs for milk & milk products of the consuming public
       in A.P and outside.

    3. Organize the co – operative structure of milk producers at the village and
       district levels.

    4. Supplement the programme extension and inputs with particular references
       to feed and fodder production and implement intensive cross – breeding
       programme for milk cows to increase milk production.

    5. Carry out human resource development programme to provide effective
       leadership and management skills in the service of the rural producers.




                                         15
THE CO-OPERATIVE MILK PRODUCERS UNION IN A.P.:

Sri Vijaya Visakha Co-operative Milk Producers Union,Vizag.

The Godavari Co-operative Milk Producers Union, RAJAHMUNDRY.

The Krishna District Co-operative Union, VIJAYAWADA.

The Guntur District Co-operative union, VADLAMUDI.

The Prakasam District Co-operative union, ONGOLE.

The Nellore District Co-operative union, NELLORE.

The Chittoor District Co-operative union, CHITOOR.

The Cuddapah District Co-operative union, PRODDUTUR.

The Kurnool District Co-Operative union, KURNOOL.

The Nalgonda District and Co-operative Union, HYDERABAD.

Medak District and Co-operation Union, MEDAK.




                             16
COMPANY PROFILE




Sri Vijaya Visakha Milk Producers Company Limited., [Visakha Dairy],

Visakhapatnam in Andhra Pradesh, is having their procurement operations in

Coastal Andhra districts, viz, Srikakulam, Vizianagaram, Visakhapatnam & in East

Godavari and Sales operations across India. The Government after considering

dairying as one of the instruments for bringing socio economic development in the

rural areas, To overcome this object, the Dairy was started in the year 1973 with

handling capacity of 10000 liters per day in Visakhapatnam under cooperative act

with milk procurement operations in 50 villages. Now the Dairy is procuring the

milk from 2744 villages in Costal Andhra areas by serving 2,07,925 milk

producers.


The Dairy was converted to Mutually Aided Cooperative Act-1995 in the year

1999 as „Sri Vijaya Visakha District Milk Producers Mutually Aided Cooperative




                                       17
Union' and the Dairy was converted to Company Act-1956 with effect from

06.01.2006 as „SriVijayaVisakha Milk Producers Company Limited‟.


The Procurement and Production graph growth is increasing year after year with

more participation of the rural farmers.


Now the Visakha Dairy is one of the fastest growing Milk & Milk Products

Manufacturing organizations.


                           M ISSION STATEMENT

The following is the mission statement of Visakha Dairy.


“Visakha Dairy is committed to enhance the Milk Procurement through Technical

inputs by providing Quality services to our Member Producers by ensuring

economic viability to improve socioeconomic conditions of our Members. Visakha

Dairy is also committed to supply quality milk and milk products to consumers.

Our Dairy shall become top dairy in the country with its inspired team of

employees. We, the inspired Team of Employees are dedicated to


    Co-operation

    Honesty

    Discipline & Time

    Quality & Purity

                                           18
 Hard Working

    Transparency

    Trust & Belief on Organization

    Mutual Respect

    Skill Development

    Education




                              QUALITY POLICY



Visakha Dairy endeavours to be one of the largest processors of milk and

manufactures of milk products in India. We are committed to provide hygienic,

safe and nutritious products while meeting the statutory and legal requirements to

achieve customer satisfaction and in-turn to improve the economy of our member

producers. To this effect the management is committed to communicate,

implement, maintain and continually improve the Quality and Food Safety

Management Systems in the Dairy.




                                        19
THE GROWTH OF VISAKHA DAIRY

         Started Dairy with a handling capacity of 10000 LPD
1966 -
         (Lts. Per Day) operations in Visakhapatnam.

1973 - Union registered under cooperatives Act.

         Inauguration of 50000 LPD Visakha Cooperative Modern Dairy.
1977 -
         By Sri.Jalagam Vengala Rao Chief Minister of AP.

         Inauguration of 25000 LPD MCC (Milk Chilling Center) at
1980 -
         Narasipatnam.

         Joined as member of the AP Dairy Development Coop Federation
1981 -
         Ltd. At AP level.

       Operation area of the Union extended to Srikakulam and
1982 - Vizainagaram districts and the name changed to Sri Vijaya
       Visakha District Cooperative Milk producers Limited.

         MCC Srikakulam merged with Visakha Coop Dairy & capacity
1985 -
         expanded from 12000 to 20000 LPD.

1986 - Expansion 50000 to 100000 LPD.

1987 - NMG (National Milk Grid) milk sales started.

       Expansion plant 100000 to 150000 litres per day. Establishment
1989 - of milk producers & employees‟ education, health and medical
       welfare trust.

1991 - Expansion of 150000 to 200000 LPD.

1996 - Inauguration of 30000 LPD chilling center at Vizianagaram.


                                    20
1998 - Inauguration of 13 MT powder plant at Visakhapatnam.

       Converted to Mutually Aided Cooperative Act‟95. Name also
1999 - changed as “Sri Vijaya Visakha District Milk Producers Mutually
       Aided Cooperative Union Limited”

       Dairy expansion 200000 to 300000 LPD Commenced milk
2000 - procurement in East Godavari District Commissioning of milk
       packing station at MCC Kakinada

       Inauguration of Aseptic packing station (APS) Commissioning of
2001 - milk packing station at Hyderabad & sales started at
       Rajahmundary & Hyderabad.

         Dairy expansion 300000 to 500000 LPD Inauguration of milk
2002 -
         pouch packaging station.

2003 - ISO 9001:2000 & HACCP certification.

2004 - Up gradation of HACCP to revised standard.

         Converted to Company Act‟56. Name also changed as “Sri
2006 -
         Vijaya Visakha Milk Producers Company Limited”

         Inauguration of Aseptic packing station (APS) with New Tetra
2008 -
         Pack A1 Machine




                                    21
OTHER ACTIVITIES

Visakha Dairy is not only concentrating on the farmer‟s cattle welfare but is
equally giving priority for the welfare of farmer families in different dynamics like
….


►      HEALTH


►      EDUCATION


►      SOCIO-ECONOMIC MEASURES

In this process Visakha Dairy Chairman, Sri Adari Tulasi Rao established a

Welfare Trust in 1989 named as Milk Producers and Employee's Education

Health and Medical Welfare Trust (MP & EEH & MW Trust).

The main aim of the Trust is to extend Medical Health and Educational facilities

particularly to farmers and their families. In this direction the trust has established

a modern hospital fully equipped with the latest technology and employed

specialists and super specialists. Further, it has established schools and colleges for

rural poor and farmer's children.


The Trust's activities are being carried out in 8.25 acres of land in the vicinity of

city of Visakhapatnam. Various social welfare activities have been undertaken

since its establishment which was applauded by various Government officials,

Chief Ministers, Parliamentarians, Ministers and other Public Figures.

                                          22
Health

Krishi Trust Hospital is one of the most
well equipped and best Medical Trust
Hospitals    in   the   Green      City   of
Visakhapatnam. The Hospital is a 100
bedded modern multi – speciality cum
critical care referral hospital. To give the
patient best care round the clock, The
hospital is fully infrastructured with Hi-
Tech equipment of world class quality to
provide best medical care. Krishi Trust
Hospital is situated in a quiet and serene
place in Sheelanagar away from the
noise and pollution of the city.




            Hospital Equipment                  Nursing College




                                           23
Education




Trust provides the residential educational
facility with subsidised rates for visakha
dairy milk producers and employees
childrens & general public also. It
provides free education to orphans
recommended by the local village heads
as well as to children who are below
poverty level.

Providing Education from Primary Level
to Junior College & Nursing College.
Computer education is provided from
3rd   class onwards.     The trust       has
Residential facility for 300 Students.


                                                School




                                           24
The trust believes in value based
education. The teacher student ratio is
1:25     in   true   spirit.   Students   are
disciplined and hard working, so every
year the school gets good results in the
general public exams. The aim is to
impart         qualitative        education.


There is a well equipped Laboratory,
Library, Multi Media Computer Lab. We
have a playground with sports facilities.
Our Students are selected for national
sports, and sports academy in Andhra
Pradesh

                                                 College & Hostel




                                            25
Socio-Economic Measures

Various social welfare activities have
been taken up by the Trust. Among the
other activities, the Trust has provided
drinking water to rural poor by digging
Bore Wells in villages and arranging
water channels for farmers by digging
old and new reservoirs, and also
constructed bridges on rivers, where
crossing rivers were impossible for rural
people        in       rainy     season.
Major task of the Trust is identifying,
training, providing employment to
weaker sections who are not having any
support from the society. Hither the
Trust has provided employment directly
and indirectly to 300 people.


Providing Employment to Physically Handicapped, every Year by Conducting
interviews with cooperation of visakha dairy. Providing employment to women,
who are physically abused by their family and who have no other source of living.
roviding hearing aids to deserving deaf people after a thorough check-up by the
concerned physicians, providing wheel chairs to the physically handicapped people




                                        26
VISAKHA MILK




     27
MILK PRODUCTS




      28
Marketing Department




         29
Theoretical Framework




         30
MARKETING


Marketing is the process of identifying, anticipating and then meeting the needs
and requirements of consumers in order to make a profit. In contrast, selling
involves persuading customers that your products or services provide the benefits
that they are looking for.


You can therefore see that there is an important difference between marketing and
sales. Marketing puts the needs of the customer first. Through market research, it is
possible     to     find     out   about   customer    tastes   and    requirements.
In contrast selling takes place after marketing has helped the business to identify
those sorts of goods that customers are looking for. The sales person is convinced
that theirs is the best in the market. It is their job to then convince customers that
this is the case.

Aims of marketing department

Marketing involves a range of processes concerned with finding out what
consumers want, and then providing it for them. This involves four key elements,
which are referred to as the 4P's (the marketing mix). A useful starting point
therefore is to carry out market research to find out about customer requirements in
relation to the 4Ps.




                                           31
Market research


There are two main types of market research: Quantitative research involves
collecting a lot of information by using techniques such as questionnaires and other
forms of survey. Qualitative research involves working with smaller samples of
consumers, often asking them to discuss products and services while researchers
take notes about what they have to say. The marketing department will usually
combine both forms of research.


The marketing department will seek to make sure that the company has a
marketing focus in everything that it does. It will work very closely with
production to make sure that new and existing product development is tied in
closely     with     the     needs      and      expectations     of      customers.
Modern market focused organisations will seek to find out what their customers
want. For example, financial service organisations will want to find out about what
sort of accounts customers want to open and the standard of service they expect to
get. Retailers will seek to find out about customer preferences for store layouts and
the range of goods on offer. Airlines will find out about the levels of comfort that
customers desire and the special treatment that they prefer to receive.
A useful definition of marketing is the anticipation and identification of customer
needs and requirements so as to be able to meet them, make a profit or achieve
other key organisational objectives.




                                         32
The marketing department of a firm that produces milk carries out research to find
out the sorts of new developments that their customers are looking for. They ask
customers to tell them what improvements they would like to see to existing
products and what new products they would like developing. They test market a
range of possible products on customers. As a result of the marketing process they
are able to come up with the most suitable products.



 Nature and role of marketing

All modern organisations engage in marketing so as to be able to please and win
the loyal support of their customers. Gillette engages in marketing to find out about
the needs and requirements of shavers, banks engage in marketing research to find
out about its customers financial services requirements, and the Inland Revenue
engages in market research to find out about the needs and requirements of
taxpayers and other clients, dairy industry engages in market research to find out
about the competitors in the market and how to tackle the problem of competition.


The Chartered Institute of Marketing uses the following definition of marketing:
'Marketing is the management process responsible for identifying,
anticipating     and     satisfying    consumer        requirements     profitably.'
T
he definition places consumers at the centre of the organisation's activities -
whether they be consumers of Kellogg's Special K, the pupils or parents of
children at the local school, or people buying milk               from the dairy.




                                         33
Some organisations are very close to their consumers - for example, a post office in
a small town. For other organisations consumers may be thousands of miles away.
The principle that the 'Consumer is King and Queen' is just as relevant to the
organisation engaged in marketing.


There are a number of key ingredients to the Chartered Institute of Marketing
definition:
Identifying - This will involve answering questions such as 'How do we find out
what the consumer's requirements are?' and 'How do we keep in touch with their
thoughts and feelings and perceptions about our good or service. This is a key
purpose of market research.
Anticipating - Consumer requirements change all the time. For example, as people
become richer they may seek a greater variety of goods and services. Anticipation
involves looking at the future as well as at the present. What will be the Next Best
Thing (NBT) that people will require tomorrow.
Satisfying - Consumers want their requirements to be met. They seek particular
benefits. They want the right goods, at the right price, at the right time in the right
place.
Profitability - Marketing also involves making a margin of profit. An organisation
that fails to make a profit will have nothing to plough back into the future. Without
the resources to put into ongoing marketing activities, it will not be able to
identify, anticipate or satisfy consumer requirements.




                                          34
Marketing model




People often get confused between the marketing of a product and the selling of a
product. Marketing is concerned with identifying, anticipating and meeting the
needs of customers in such a way as to make a profit for the organisation. Market
research is thus an important element of marketing because this is the process
involved in finding out what customers want. Meeting customer requirements then
involves applying a relevant marketing mix i.e. providing the right product, at the
right price, through the right distribution channels (place) and supported by the
most suitable promotional and advertising activity.


Strategic and tactical marketing

Marketing      operates    at      two    levels      within   the     organisation.
1. At one level marketing is a strategic discipline - it is concerned with major long
term decisions that affect the whole organisation.
                                         35
In particular strategic marketing involves seeing marketing activity as being
essential to everything the organisation does. Given this strategic approach
everyone in the organisation has a responsibility for meeting needs of internal and
external customers.


2. As well as strategic marketing, marketing activity is also concerned with tactical
marketing. Tactical marketing is all about applying the marketing mix in the most
appropriate way. Tactical marketing involves such activities as:


organising relevant promotions,
setting prices, and adjusting price in line with customer expectations, what the
competition is doing etc.
positioning the product, and periodically organising relaunches and adjustments to
the product in line with changing market conditions.
organising the most appropriate channels through which to distribute the product.
The most appropriate marketing model is one that combines marketing strategy
with tactics to create a totally customer facing organisation.


Market planning


Marketing is the process of developing and implementing a plan to identify,
anticipate and satisfy consumer demand, in such a way as to make a profit. The
two main elements of this plan are market research to identify and anticipate
customer requirements and the planning of an appropriate marketing mix to meet
these requirements. Market research involves gathering and recording information
about consumers, market, product, and the competition in an organised way.
                                          36
The information is then analysed and used to inform marketing decisions. There
are   three main ways       of gathering information        for market     research:
1.From internal information already held by an organisation, e.g. details of existing
customers and their spending habits.
2. External primary information - i.e. information collected at first hand by
interviewing customers and potential customers to get their views about a
company, products and services.
3. External secondary information - using published sources of information e.g.
those produced by marketing organisations about products, markets and brands.


Marketing planning can then be used:
1. To assess how well the organisation is doing in its markets.
2. To identify current strengths and weaknesses in these markets.
3. To establish marketing objectivesto be achieved in these markets.
4. To establish a marketing mix for each market designed to achieve organisational
objectives.


A simple definition of market research is 'keeping those who provide goods and
services in touch with the needs and wants of those who buy the goods and
services.'


A marketing strategy is an overall marketing plan designed to meet the needs and
requirements of customers. The plan should be based on clear objectives. A
number of techniques will then be employed to make sure that the marketing plan
is effectively delivered. Marketing techniques are the tools used by the marketing
department. The marketing department will set out to identify the most appropriate
techniques to employ in order to make profits.
                                         37
These marketing techniques include public relations, trade and consumer
promotions, point-of-sale materials, editorial, publicity and sales literature.
Marketing techniques are employed at three stages of marketing:




Market research enables the organisation to identify the most appropriate
marketing mix. The mix should consist of:
the right product
sold at the right price
in the right place
using the most suitable promotional techniques.


To create the right marketing mix, marketers have to ensure the following:



The product has to have the right features - for example, it must look good and
work well.
The price must be right. Consumers will need to buy in large numbers to produce a
healthy profit.
The goods must be in 'the right place at the right time'. Making sure that the goods
arrive when and where they are wanted is an important operation.



                                         38
The target group needs to be aware of the existence and availability of the product
through promotion. Successful promotion helps a firm to spread costs over a larger
output.


Finally techniques need to be applied to monitor the success of marketing activity.
For example when carrying out advertising it is helpful to track consumer
awareness of the adverts and their messages. Evaluation can also take the place of
other aspects of the marketing mix e.g. which distribution channels were most
effective? Was the chosen price the right one? etc.

 Business behaviour: marketing

Today businesses have an increasing market focus. If organisations are to serve the
needs of their customers they need to be structured in such a way as to identify and
meet customer requirements.
Businesses therefore need to behave in such a way that they recognise the needs of
the customer.
A company prospers best when everyone in it believes that success depends on the
excellence of his or her contribution. Short-term decisions made many times a day
by individuals determine the quality of that day's work.
The governing principle should be that everybody has a customer - either outside
the company (the traditional 'customer') or inside the company (the internal
customer). Both kinds of customer expect to be supplied with the product or
service they need, on time and as specified.
The principle holds good for everyone in the company, whatever their level of skill
and experience, whether their 'product' is answering a telephone in a helpful way or
masterminding a major new project. It works to everyone's benefit.



                                         39
It gives the individual genuine responsibility and scope for initiative and it
virtually guarantees that the company's performance will be improved.
However, individual behaviours will only match the organisation objective of
being customer focused if the right sorts of structures are created. Hence the
importance of developing structures such as team working and empowering
employees     to        make     decisions   rather   than   be   told   what   to   do.


Advertising, promotion, packaging and branding
Advertising, promotion, packaging and branding are important marketing tools
which are used to make products and services more desirable and hence increase
sales and profits.


Any form of publicity is advertising. There are two main forms of advertising
although           in          practice      the       two        are      inter-related.
The informational aspect of advertising involves providing information about
products, services, or about important issues. For example, the government
provides information about the dangers of cigarette smoking, which is an example
of informative advertising.


Persuasive advertising goes further and uses a persuasive message, for example by:
showing a famous personality (e.g. Film Stars) using the product
comparing the advantages of one product with another
Using sex appeal.




                                              40
There are a number of processes involved in producing effective advertising,
including:

identifying the most appropriate market segments to target the advertising
choosing the best possible media, e.g. television, radio, posters etc
projecting the right message in the adverts
getting the timing of the advertisements right
tracking the effectiveness of the advertising, e.g. checking to see how many people
can recall the advert and its message.


Advertising is just one way of promoting a product. Promotion is the business of
communicating with customers. There are a number of ways of promoting
products and services, including:

in-store promotion e.g. giving away free samples in a supermarket
publicity in the media, competitions, and sponsorship
PR - public relations activities - i.e. presenting the public image of a company to a
wide audience
presenting products in attractive packaging
creating an attractive brand for a product.

 Sponsorship

Packaging typically refers to the material in which a product is packed - or more
specifically, the surface design on the material. However, a wider definition
includes all the various aspects of presenting a product - e.g. the shape size and
appearance of the packaging, colour and design, the convenience of using the
packaging etc.



                                          41
A brand is a product with a unique, consistent and well recognised character. The
branding of the product therefore involves projecting and developing this
character. The uniqueness can come either from an actual product or from its
image - usually created by its manufacturer through advertising and packaging.
The consistency comes mainly from the consistence of its quality and performance,
but it also reflects the consistency of the advertising and packaging. A brand is
well-recognised because it has been around for a long time. It takes years to
develop a brand.


CONSUMER PREFERENCE




                                       42
All marketing starts with the consumer. So consumer is a very important person to
a marketer. Consumer decides what to purchase, for whom to purchase, why to
purchase, from where to purchase, and how much to purchase. In order to become
a successful marketer, he must know the liking or disliking of the customers. He
must also know the time and the quantity of goods and services, a consumer may
purchase, so that he may store the goods or provide the services according to the
likings of the consumers. Gone are the days when the concept of market was let the
buyer‟s beware or when the market was mainly the seller‟s market. Now the whole
concept of consumer‟s sovereignty prevails. The manufacturers produce and the
sellers sell whatever the consumer likes. In this sense, “consumer is the supreme in
the market”.

As consumers, we play a very vital role in the health of the economy local, national
or international. The decision we make concerning our consumption behavior
affect the demand for the basic raw materials, for the transportation, for the
banking, for the production; they effect the employment of workers and
deployment of resources and success of some industries and failures of others.
Thus marketer must understand this.

Preference (or "taste") is a concept, used in the social sciences, particularly
economics. It assumes a real or imagined "choice" between alternatives and the
possibility of rank ordering of these alternatives, based on happiness, satisfaction,
gratification, enjoyment, utility they provide. More generally, it can be seen as a
source of motivation.

In cognitive sciences, individual preferences enable choice of objectives/goals.
The study of the consumer preference not only focuses on how and why consumers
make buying decision, but also focuses on how and why consumers make choice


                                         43
of the goods they buy and their evaluation of these goods after use. So for success
of any company or product promotion it is very necessary to depart its
concentration towards consumer preference.



The underlying foundation of demand is a model of how consumers behave. The

individual consumer has a set of preferences and values whose determination are
outside the realm of economics. They are no doubt dependent upon culture,
education, and individual tastes, among a plethora of other factors. The measure of
these values in this model for a particular good is in terms of the real opportunity
cost to the consumer who purchases and consumes the good. If an individual
purchases a particular good, then the opportunity cost of that purchase is the
forgone goods the consumer could have bought instead.

We develop a model in which we map or graphically derive consumer preferences.
These are

The consumer‟s objective is to choose the bundle of goods which provides the
greatest level of satisfaction as they the consumer define it. But consumers are
very much constrained in their choices. These constraints are defined by the
consumer‟s income, and the prices the consumer pays for the goods.

THE THEORY OF THE CONSUMER

Consumer make decisions by allocating their scarce income across all possible
goods in order to obtain the greatest satisfaction. Formally, we say that consumers
maximize their utility subject to budget constraint.     Utility is defined as the
satisfaction that a consumer derives from the consumption of a good.



                                        44
As noted above, utility‟s determinants are decided by a host of noneconomic
factors. Consumer value is measured in terms of the relative utilities between
goods.

These reflect the consumer‟s preferences.

Theory of Consumer Preferences

Consumer preferences are defined as the subjective (individual) tastes, as measured
by utility, of various bundles of goods. They permit the consumer to rank these
bundles of goods according to the levels of utility they give the consumer. Note
that preferences are independent of income and prices. Ability to purchase goods
does not determine a consumer‟s likes or dislikes. .

The Need to Understand Customer Preference

Have you ever wondered why your company often loses relatively satisfied
customers? Why is it that customers will often indicate they are satisfied with how
they have been treated but then leave for a competitor at the first opportunity?
Why is customer defection often unrelated to price? The answers to these and other
related questions are found in coming to an understanding of customer
preference.



The idea that customers prefer one product or one service over another is not new.
The ability to identify and measure the elements of such preference decisions with
any accuracy and reliability has only recently become available.



Research into this area of consumer behavior has brought understanding to some of
the major issues with standard customer satisfaction research.

                                         45
Most importantly, we have come to realize that high customer satisfaction does
not assure continued customer preference. Satisfaction research over the past
fifteen years demonstrates that high satisfaction scores, while a measure of
corporate performance on a set of important criteria, do not adequately explain the
composition of preference formation and therefore often serve as insufficient
predictors of sustained preference or what is normally referred to as customer
loyalty.



Loyalty as a concept has also shown itself to be difficult to define. Like beauty,
loyalty is truly in the eye of the beholder. We understand there are different types
and degrees of loyalty and some of these are not appropriate in describing the
relationship between a consumer and a company. However, preference (defined as
The power or ability to choose one thing over another with the anticipation that
the choice will result in greater satisfaction, greater capability or improved
performance) has demonstrated the ability to be effectively measured and to
provide meaningful insight into the choices consumers make when selecting one
provider over another and when determining to continue a relationship over time.




                                         46
REASONED ACTION MODEL OF CONSUMER PREFERENCE




 Conviction that the
choice leads to certain
  desired functional
      outcomes
                            Evaluation of the
                                                  Attitude toward the
                               outcomes
                                                        behavior


 Conviction that the
choice leads to certain
   desired emotive
      outcomes
                                                    Intention           Preference
                                                                         Behavior



 Conviction that the
 choice is considered
  correct by others
                          Subjective comparison
                                   norm

Motivation to comply
 with the opinion of
       others




                                          47
The important contribution of the reasoned action model is the realization that
consumers utilize the model in all purchase experiences to a lesser or greater
extent. Of equal importance is the realization that the components used to make a
preference decision are also the ones employed by a consumer to evaluate the
performance success of the product or service purchased and the company
responsible for them. Therefore, as the components of preference change, the
elements influencing satisfaction change accordingly.



The relationship is dynamic and fluid therefore static or predetermined satisfaction
analytic packages often miss the most important elements of preference and can
create a false sense of security on the part of companies who think that since their
customer satisfaction scores are high they must in turn have relatively loyal
customers.




                                         48
Data Analysis and Interpretation




               49
DATA ANALYSIS AND INTERPRETATION
I met around 100 sellers of milk and found the following information from the
agent‟s answer of the relevant questionnaire. These charts are made according to
the found data on 100 questionnaires.

   1. Total Number of shops for Visakha and Heritage.


                     PRODUCT                NO. OF RESPONDENTS



                     VISAKHA                         60



                    HERITAGE                         40




                            NO. OF RESPONDENTS
       70

       60

       50

       40

       30                                                 NO. OF RESPONDENTS

       20

       10

        0
                  VISAKHA             HERITAGE




                                       50
BRAND PREFERENCE




                                                              VISAKHA
                                                              HERITAGE




INTERPRETATION



Here, I have taken a sample size of 100 agents to understand the total

market share of Heritage and Visakha brands. We can see that VISAKHA has a

better share in the market than HERITAGE. Only 40% shops sell the HERITAGE

out of 100 and 60% sell Visakha. This clearly indicates the preference levels of

Visakha among customers when compared to Heritage.




                                       51
2. How many Crates of Visakha and Heritage do you sell in a day?


                     PRODUCT             NO. OF CRATES



                     VISAKHA                       790



                    HERITAGE                       748




                           NO. OF CRATES
     800

     790

     780

     770

     760
                                                         NO. OF CRATES
     750

     740

     730

     720
                 VISAKHA                HERITAGE




                                   52
NO. OF CRATES SOLD ON A DAILY BASIS




                              HERITAGE
                                49%               VISAKHA
                                                    51%




INTERPRETATION

Sale of Visakha milk per day is 790 crates and sale of Heritage milk is 748 crates
per day. It is clearly evident that the sale of Visakha milk is better than the sale of
Heritage milk.




                                           53
3. Is the availability of Visakha milk sufficient?



                        RESPONSE               NO. OF RESPONDENTS


                             YES                       80


                             NO                        20




                             NO. OF RESPONDENTS
            90
            80
            70
            60
            50
            40                                              NO. OF RESPONDENTS
            30
            20
            10
             0
                       YES                 NO




                                          54
SUFFICIENCY OF MILK AVAILABILITY


                                  NO
                                  20%




                                               YES
                                               80%




INTERPRETATION


In my survey 80% agents are satisfied with the availability of Visakha milk and

20% agents are not satisfied with the availability of Visakha milk.




                                         55
4. Are you satisfied with product delivery time?


                        RESPONSE                NO. OF
                                             RESPONDENTS


                            YES                    57



                             NO                    43




                            NO. OF RESPONDENTS
           60

           50

           40

           30
                                                        NO. OF RESPONDENTS
           20

           10

            0
                      YES               NO




                                        56
SATISFACTION WITH PRODUCT DELIVERY TIME




                                                                             YES
                                                                             NO




INTERPRETATION


53% of agents said that delivery time of Visakha Milk is good where as

47% of agents felt that the delivery time of Visakha Milk is not so good causing

inconvenience to the collecting agents.




                                          57
5. Margin of Sales is sufficient or not?




                      RESPONSE                  NO. OF RESPONDENTS



                         YES                            30



                             NO                         70




                             NO. OF RESPONDENTS
           80
           70
           60
           50
           40
                                                        NO. OF RESPONDENTS
           30
           20
           10
            0
                       YES                 NO




                                           58
Satisfaction with Margin of Sales




                                                                                  YES
                                                                                  NO




INTERPRETATION


Most of the agents were not happy with the margin on sales paid to them by

Visakha Dairy. The level of dissatisfaction is more than the level of satisfaction.




                                          59
6. Behavior of milk delivery van driver is?


                        RESPONSE              NO. OF RESPONDENTS

                       EXCELLENT                      56

                            GOOD                      24

                        AVERAGE                       12

                            BAD                       8




                            NO. OF RESPONDENTS
           60

           50

           40

           30
                                                          NO. OF RESPONDENTS
           20

           10

            0
                EXCELLENT   GOOD   AVERAGE     BAD




                                         60
BEHAVIOUR OF DELIVERY VAN DRIVER




                                                                  EXCELLENT
                                                                  GOOD
                                                                  AVERAGE
                                                                  BAD




INTERPRETATION

In my survey, I understood that 56% agents felt that the behavior of driver is

excellent, 24% agents said that it is good, 12% agents said that it is average and

8% said that is bad. It means that on an average the behavior of the delivery van

driver is good.




                                        61
7. Quality of Visakha Milk is




                      RESPONSE                 NO. OF RESPONDENTS

                     EXCELLENT                         33

                            GOOD                       46

                      AVERAGE                          13

                            BAD                        8




                              NO. OF RESPONDENTS
           50
           45
           40
           35
           30
           25
           20                                          NO. OF RESPONDENTS
           15
           10
            5
            0
                EXCELLENT    GOOD   AVERAGE    BAD




                                          62
QUALITY OF VISAKHA MILK




                                                                             EXCELLENT
                                                                             GOOD
                                                                             AVERAGE
                                                                             BAD




INTERPRETATION

During the survey 33% agents said that the quality of Visakha milk is excellent,

46% said good, 13% said average and only 8% said that the quality of

Visakha milk is bad. This gives a clear picture that visakha milk has to take

certain measures to improve the quality of milk to satisfy all the people.




                                          63
8. Customer purchase milk because of


                       FACTOR               NO. OF RESPONDENTS

                        PRICE                       23

                      QUALITY                       44

                        TASTE                       10

                    AVAILABILITY                    15

                       OTHERS                       8




                         NO. OF RESPONDENTS
         50
         45
         40
         35
         30
         25
         20
         15                                              NO. OF RESPONDENTS
         10
          5
          0




                                       64
REASON BEHIND BUYING MILK




                                                                       PRICE
                                                                       QUALITY
                                                                       TASTE
                                                                       AVAILABILITY
                                                                       OTHERS




INTERPRETATION


In my survey agents said that 23% customers purchase Visakha milk due to price,

44% due to quality, 10% due to taste, 15% due to availability and 8% due to other

reasons.




                                       65
Report of Consumer

Q- Which Brand of milk do you use?

                     PRODUCT                 NO. OF RESPONDENTS


                     VISAKHA                        47%


                     HERITAGE                       33%


                      OTHERS                        20%




                           NO. OF RESPONDENTS
          50%
          45%
          40%
          35%
          30%
          25%
                                                      NO. OF RESPONDENTS
          20%
          15%
          10%
           5%
           0%
                 VISAKHA     HERITAGE    OTHERS


                                        66
BRAND PREFERENCE BY CUSTOMERS




                                                               VISAKHA
                                                               HERITAGE
                                                               OTHERS




INTERPRETATION


During my survey it was observed that 47% consumers prefer Visakha

milk, while 33% consumers prefer Heritage milk and 20% consumers prefer

other Milk brands including loose milk supplied by milkmen.




                                       67
Q- How do you know about Visakha Milk?




                      SOURCE                     NO. OF RESPONDENTS


                   Advertisements                         53%


                     Shopkeeper                           32%


                        Others                            15%




                           NO. OF RESPONDENTS
          60%

          50%

          40%

          30%
                                                           NO. OF RESPONDENTS
          20%

          10%

          0%
                Advertisements Shopkeeper        Others




                                            68
SOURCE




                                                                        Advertisements
                                                                        Shopkeeper
                                                                        Others




INTERPRETATION


Wh e n c u s t o me r s we r e a s k e d h o w t h e y c a me t o k n o w a b o u t

V i s a k h a M i l k , 53% of customers replied through advertisement, 32% of

Customers replied through their local shopkeepers and 15% of customers replied

by other means.




                                        69
Q- What is the average Quantity of milk Consumed by you?


                             QUANTITY                   NO. OF RESPONDENTS


                               2+ ltrs                           30%


                               2 ltrs                            45%


                               1+ ltrs                           13%


                                1 ltr                            12%




                               QUANTITY CONSUMED
            50%
            45%
            40%
            35%
            30%
            25%
                                                                   NO. OF RESPONDENTS
            20%
            15%
            10%
             5%
             0%
                   2+ ltrs      2 ltrs   1+ ltrs         1 ltr




                                                   70
QUANTITY OF MILK CONSUMED



                                                                   2+ ltrs
                                                                   2 ltrs
                                                                   1+ ltrs
                                                                   1 ltr




INTERPRETATION



I observed in my survey that 30% of consumers consume 2+ ltrs milk per day, 45%

consumers consume 2 ltrs milk per day and 13 % consumers consume 1+ ltr per

day, while only 12% consumers consume 1 liter of milk per day.




                                       71
Q- Why do you choose a particular brand?


                       REASON              NO. OF RESPONDENTS


                  HOME DELIVERY                   10%

                 EASY AVAILABILITY                23%

                        PRICE                     22%

                      QUALITY                     45%




                         NO. OF RESPONDENTS
          50%
          45%
          40%
          35%
          30%
          25%
          20%
          15%
          10%
           5%                                       NO. OF RESPONDENTS
           0%




                                      72
REASON FOR BRAND PREFERENCE




                                                         HOME DELIVERY
                                                         EASY AVAILABILITY
                                                         PRICE
                                                         QUALITY




INTERPRETATION


It was observed during the survey that different persons consume
a particular brand because of many factors. 10% of consumers consume a
particular Brand of milk because of Home Delivery, while 23% of consumers
consume a particular band of milk because of Easy availability and 22% of
consumers consume a particular brand because of Price, 45% of consumers
consume a Particular brand because of Quality of the product provided to
them by the company.




                                   73
Q- Why are you using Visakha Milk?


                       REASON                  NO. OF RESPONDENTS

                 HOME DELIVERY                            5%

               EASY AVAILABILITY                          28%

                        PRICE                             16%

                      QUALITY                             51%




                          NO. OF RESPONDENTS
        60%

        50%

        40%

        30%
                                                                NO. OF RESPONDENTS
        20%

        10%

         0%
               HOME       EASY        PRICE     QUALITY
              DELIVERY AVAILABILITY




                                          74
REASON FOR PREFERING VISAKHA MILK




                                                                    HOME DELIVERY
                                                                    EASY AVAILABILITY
                                                                    PRICE
                                                                    QUALITY




INTERPRETATION


When the customers using Visakha milk were asked why they use Visakha milk,
5% of customers replied with the answer because of Home Delivery of the
Milk, 28% of customers replied with the answer because of Easy Availability,
while 16% of customers replied with the answer that because price is very
good and rest 51% replied that the quality of Visakha milk is very good. So
maximum number of customers prefer visakha milk because of its good quality.




                                      75
Q- Why are you not using Visakha Milk?



                     REASON               NO. OF RESPONDENTS

                 HOME DELIVERY                   9%

                EASY AVAILABILITY                18%

                      PRICE                      47%

                    QUALITY                      26%




                        NO. OF RESPONDENTS
          50%
          45%
          40%
          35%
          30%
          25%
          20%
          15%
          10%
           5%                                     NO. OF RESPONDENTS
           0%




                                     76
REASONS FOR NOT PREFERING VISAKHA MILK



                                                                   HOME DELIVERY
                                                                   EASY AVAILABILITY
                                                                   PRICE
                                                                   QUALITY




INTERPRETATION



When customers not using Visakha milk were asked reason for not using the

Visakha milk many reasons were found. 9% of the customers do not

prefer Visakha because of its high price, 18% of consumers do not

consume Visakha milk because of non-availability of the Visakha milk at

their nearest shopkeepers, while 47% of customers do not use Visakha milk

because of no home delivery service, 26% of consumers do not prefer Visakha

milk because of Low Quality of Visakha milk. So the response is mixed.




                                      77
Q- How do you Purchase Milk?
                       RESPONSE               NO. OF
                                           RESPONDENTS

                      YOURSELF                    83


                   HOME DELIVERY                  17




                        NO. OF RESPONDENTS
          90
          80
          70
          60
          50
          40                                           NO. OF RESPONDENTS
          30
          20
          10
           0
                  YOURSELF        HOME DELIVERY




                                      78
MODE OF PURCHASE




                                                           YOURSELF
                                                           HOME DELIVERY




INTERPRETATION:


When customers were asked, how they Purchase the milk 83% of customers
said on their own, while 17% of the customers responded with the answer
Home Delivery.




                                  79
Q- What is your overall experience with Visakha.



                        RESPONSE                 NO. OF RESPONDENTS

                       EXCELLENT                        10%

                             GOOD                       61%

                             FAIR                       22%

                             POOR                       7%




                             NO. OF RESPONDENTS
           70%


           60%


           50%


           40%


           30%                                            NO. OF RESPONDENTS


           20%


           10%


            0%
                 EXCELLENT    GOOD   FAIR        POOR




                                            80
OVER ALL RESPONSE WITH VISAKHA




                                                                      EXCELLENT
                                                                      GOOD
                                                                      FAIR
                                                                      POOR




INTERPRETATION:


When customers were asked what their overall experience with Visakha
was then, 10% of customers replied with the answer excellent, 61% customers
replied good, 22% customers replied fair and 7% of the customers responded with
the answer poor.




                                      81
AWARENESS

                      PURCHASE PREFERENCE


                PRODUCT                PREFERENCE

                VISAKHA                      30%

                HERITAGE                     26%

                 JERSEY                      6%

                 DODLA                       13%

                AGRIGOLD                     15%

                 OTHERS                      10%




                   PURCHASE PREFERENCE
35%

30%

25%

20%

15%

10%

5%

0%
      VISAKHA   HERITAGE   JERSEY    DODLA         AGRIGOLD   OTHERS




                                82
WHAT INFLUENCES CONSUMER TO BUY VISAKHA MILK?


            PRODUCT               PREFERENCE

           ADVERTISING                12%

          WORD OF MOUTH               18%

       ATTRACTIVE PACKING             5%

             DEALER                   5%

              PRICE                   10%

             QUALITY                  40%

             OTHERS                   10%




                       PREFERENCE
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%




                            83
Findings

Suggestions

 Annexure

Bibliography




     84
FINDINGS


FINDINGS OF RETAILER SURVEY



   Heritage is offering more incentives than Visakha.

   Heritage has started to offer chilling equipments.

   Most of the retailers associate themselves with Visakha milk.

   Visakha products are sold more than others.

   Retailer if provided more cooling equipment promises to stock more

     Visakha products.

   Retailers have problem of advertising material, schemes related material of

     Visakha.

   Retailers are more interested in products of those companies, which offers

     more margins to them.

   Visakha Milk becomes scarce during the time of festivals etc.

   Visakha is not trying to introduce new products in the market.

   The packing of Visakha Products in not so attractive.




                                       85
SUGGESTIONS


 Visakha should change the packing as it is not attractive and does not seem to be

   standard and hygienic.

 Visakha should make 24hour availability of milk in the market in order

   to improve their Sales.

 Visakha should offer more home delivery services to Increase sales

 Visakha should offer refrigerators on installments to retailers.

 Visakha should give emphasis on Punctuality and regularity in the Supply of milk.

 Visakha should offer promotional schemes to retailers as is done by Heritage.

 Visakha should offer some extra benefit to the customer and supplier.

 Visakha should offer promotional schemes to retailers as free sample, gift packs

 The organization should make elaborate arrangements for availability of milk at

   the time of festivals etc.

 Visakha should provide home delivery facility to their consumers.

 Visakha should launch some new products also.

 Visakha should emphasize to provide better quality than others instead of

   increasing the sale.

 Visakha should increase the number of retail shops, wher e the retail

   shops of Visakha is not available.

 Visakha should emphasize on advertisement also.




                                         86
PLEASE ANSWER ALL QUESTIONS ASKED IN THE QUESTIONAAIRE AND SEEK
    FOR HELP IF ANY THING IS NOT CLEAR OR UNDERSTOOD TO YOU.


NAME OF CUSTOMER:

OCCUPATION: ______________________________________

ADDRESS: ______________________________________

MOBILE NUMBER: ______________________________________

No. OF FAMILY MEMBERS: 1 to 3, (                  )        3 to 5 (          ) , More than 5 (       )

MONTHLY INCOME:

       BELOW 5000                       (                  )
       15000 to 20,000,                (                   )
       20,000 to 50,000,               (                   )
       MORE THAN 50,000                (                   )


Q.No.1: Which brand of milk do you use?

(a) Visakha (           ) (b)          Vijaya (                 ) (c)        Others (       )



Q.No.2: How do you know about Visakha Milk?

(a) Advertisement (        ) (b) Shopkeeper (              ) (c) Others             (       )



Q.No.3: Quantity used by you (In liter)?

(a) 3 liters ( )      (b) 2 liters (        ) (c) 1+ liters (           ) (d) 1 liter (          )



Q.No.4: Reason to choose a particular brand?

(a) Home Delivery (            )   (b) Easily Available (                )

(c) Price (        ) (d) Quality (            )

                                                      87
Q.No.5: Reason for using Visakha?

(a) Quality (           )               (b) Price (       )             (c) Availability (   )



Q.No.6: Reason for not using Visakha ?

(a) High Price (                )       (b) Non Availability (           )

(c) Not regular supply (                   ) (d) Bad Taste (        )



Q.No .7: How do you purchase milk ?

(a) Yourself (              )                  (b) Home Delivery (               )



Q.No.8: Response of customer about door delivery?

(a) Yes (           )                          (b) No (        )



Q.No.9: Response regarding extra charges for door delivery?

(a) Yes (       )                              (b) No (        )



Q.No. 10: What type of Visakha milk do you use?

(a) Standardized (                  )                 (b) Full Cream (           )

(c) Toned Milk (                )                              (d) Loose Milk (         )



Q.No.11: Change from one brand to another brand

a) Yes (                        )                      b) No (               )


                                                          88
Q.No.12: Over all experience with Visakha

a) Excellence (   )     b) Good (   )

c) Fair (    )    d) Poor (   )



Q.No.13: Your suggestion with respect to Visakha milk product?

………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
…………………………………………….




                                    89
RETAILER SURVEY FORM

Name of the shop ___________________________
Address: __________________________________________________
Tel No.___________________________________________________

Q.No.1: What are the milks you usually keep in your shop?

   a) Visakha b) Vijaya        c) Tirumala d) Jersey     e) Heritage f) Others

Q.No.2: Rate these milks in terms of volume of sales from 1 to 4

   a) Visakha b) Vijaya c) Tirumala d) Jersey e) Heritage f) Others

Q.No.3: Does packing play any role in promoting sales?

   a) Yes       b) No

Q.No.4: How do you sell the milk?

   a) At M.R.P       b) Less than M.R.P        c) More than M.R.P


Q.No.5: How would you compare the services of Visakha and other
brands on the following?

   Tick mark your preference

   a)   Frequency of Visit of sales personnel Visakha     (     ) Others    (   )
   b)   Timely delivery                       Visakha     (     ) Others    (   )
   c)   Display Support                       Visakha     (     ) Others    (   )
   d)   Any other                             Visakha     (     ) Others    (   )

Q.No.6: Customer purchase milk because of:

   a) Price         b) Quality        c) Availability     d) All of these

Q.No.7: Behaviour of Delivery Van Driver

    a) Good        b) Excellent          c) Bad           d) Average

                                          90
Q.No.8: Quality of Visakha Milk

    a) Good            b) Excellent   c) Bad   d) Average

Q.No.9: Product delivery time

a) Good                b) Bad

Q.No.10: Customer‟s preference purchase

a) Counter Purchase b) Door Delivery

Q.No.11: Margin on sales

a) Yes                 b) No

Q.No.12: Payment Mode

a) Monthly b) Weekly c) Daily




                                       91
BIBLIOGRAPHY




BOOKS

    ► Marketing management- Kotler Philip


    ► Marketing research- Malhotra K. Naresh


    ► Marketing Management- Berman B and Evans J.R


    ► Consumer Preference- Louden D.L. & Bitta Delia


    ►Advertising-Environment and operations- Newman A.J. and Cullen P




INTERNET WEB PAGE


    www.visakhadairy.com

    Organizedretail.co.in

    marketing seminar. In

    Literature review on visakhadairy

    marketing.co.in




                                        92

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Understanding consumer preferences and increasing market share of Visakha milk in Visakhapatnam

  • 1. Introduction Need Scope Objectives Methodology Limitations 1
  • 2. INTRODUCTION One must have a contemporary understand of this dynamic world to survive or proper therein. Never in the past has the role of manager in India as crucial and exciting as now. The ongoing economic reforms programme has created infinite opportunities. There has been an increase in milk income gradually development have broadened the knowledge of consumers. They have now become choosy resulting in winners & looser at the same time winners those who monitors needs, identifies opportunities and create value. It is the market place not the factory that ultimately determines which company will succeed. Marketing is practiced not only by manufacturing concern & their channel members but all kinds of individuals and organization. No politician can get the required votes to win and no” r e s o r t ” t h e n e e d e d t o u r i s t t o f l o u r i s h w i t h o u t d e v e l o pi n g a n d c a r r yi ng o u t t h e s o u nd marketing plans. Authentic market practice is not the art of selling what you make as much as knowing what to make. It is the art of identifying and understanding customer‟s needs and coming up with solution that satisfies them and produces riches for firm‟s profitability. 2
  • 3. As we all know, future is always uncertain. More precisely when there is volley of brilliant competitors and each wants to be the market leader. So in the light of intense competition satisfaction through product innovation maintaining the standard quality their in, failing which no amount or deal of promotional measure or scheme can compensate at length. Competitive forces have compelled the companies to focus on specific segment of the market with frequent product innovation and rather new products and launching thereof with greater confidence. The present study gives special emphasis on the various strategies to be adopted by Visakha to c o u n t e r H e r i t a g e s a l e s i n Vi s a k h a p a t na m. T h e e n t i r e s t u d y h a s b e e n d i v i d e d i n t o c h a p t e r s a n d further subdivided into segments from each dealing with a separate aspect in a simple and lucid style and clarification has been given top priority throughout the project 3
  • 4. NEED FOR THE STUDY Consumer preference study programs help in marketing the product. Marketers can be satisfied with the maximum consumers for the product if they study the preference of consumers. Here my survey deals with the consumer‟s preference in the utilization of milk via highway in Visakhapatnam dist. In early days consumers went to milk centers. They stood in a line or queued to buy the product. But the scenario has changed drastically with the market being fledged by a wide variety of brands and the volumes and prices, desired and affordable by the consumers under such circumstances it is that company which distinguishes its product from that of competitors is bound to succeed. The company has to mould its product to suit the consumer, his needs, wants, place of purchase, personality and so on. Milk is obtained from different chilling centers, collected and pasteurized, excess amount of fat is removed in the processing and maintaining required amount of fat. Milk contains fat, vitamins and mineral. Milk is consumed regularly in each and every house. Milk is complete food for infants and is partially taken by adults also either directly taken as milk or indirectly taken as tea or coffee. How ever the importance of milk may be briefly mentioned here and the preference attached to its study as a subject for the project work may be self – explanatory. 4
  • 5. SCOPE OF THE STUDY As learning is a human activity and is as natural, as breathing. Despite the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as their roles as consumers. They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer‟s needs, but the marketer‟s objectives. The scope of my study restricts itself to the analysis of consumer preferences, perception and consumption of Cadbury and Nestle Chocolates. There are many other brands of chocolates available but my study is limited to two major players of chocolates leaving behind the others. The scope of my study is also restricts itself to Mumbai region only. 5
  • 6. OBJECTIVE OF THE STUDY The most important objective of the project is that it is obligatory on the part of the student of M.B.A. programme to undergo the convention of the business administration in the partial fulfillment of M.B.A. degree besides, project study is a sort of practical training of eight weeks thus the students are benefited by undertaking such a study as it helps organization in overcoming administrative, financial, marketing and other problems whatever they may be interested in for the sake of simplicity the objectives of this study can be classified under three heads: PRINCIPAL OBJECTIVES To find out the various strategies to be adapted by Visakha to counter milk sales of Heritage in Visakhapatnam. To find various ways to increase Visakha milk sales in Visakhapatnam. To discover the various factors which hurdles people to take Visakha milk. To identify various factors which motivates people to use Visakha milk. To discover the main reason beyond shifting of customers from Visakha milk to other milk. The other objective is to know about the customer satisfaction level associated with the product and the customer preference level. To increase customer satisfaction and recapture the market share by fulfilling the customer needs. To study the factors affecting the consumption pattern. 6
  • 7. METHODOLOGY COLLECTION OF DATA The data was collected from two different sources PRIMARY DATA The primary data has been collected with the help of a questionnaire, prepared specially for the retailers and consumers to be administered for their responses Questionnaire Direct Interview. SECONDARY DATA Secondary data is what the researcher collects from different sources. It also helps to get elaborate information to do the research. Secondary data has been collected from Books Magazines Internet Company annual reports Research papers Govt. Publications Past Records and Files Journals and periodicals pertaining to different brands and segments of milk. 7
  • 8. LIMITATIONS Limitations of study and difficulties encountered: N o t h i n g i n t h i s u n i v e r s e i s f r e e f r o m L i mi t a t i o n s a n d p r e s e n t p r o je c t i s n o t a n exception to it. Due to certain restrictions on the part of potential customers as well as actual customers and Suppressed and biased responses from them, appropriate figure for relevant data and their interpretation precisely could not be ascertained, Due to time and budgetary constraint, the sample size was restricted. The salesmen at the outlets showed their discontent with the tight schedule. Most of the retail respondents showed their discontent with the company for its unsystematic distribution, replacement, short supply, incentives, margin and so they were reluctant to talk about the company. People of the region were not conscious about the survey, so they were not much supportive. Nearly about 30% population of the city takes the service of servants to bring their milk from market and reason for their brand selection was not known. M a n y p e o p l e d o n o t k n o w t h e ms e l v e s wh y t h e y u s e a n y p a r t i c u l a r b r a n d a s t h e i r answer was “we use ……brand because we like it” so the actual reason behind their l i k i n g wa s n o t c o n f i r me d . Many retailers do not like to interact because of t h e i r business. People are not interested to fill questionnaire as they think it as wastage of time, this is again because of less scope of research in India. 8
  • 10. INDUSTRY PROFILE INTRODUCTION Milk producing animals have been domesticated for thousands of years. Initially, they were part of the subsistence farming that nomads engaged in. As the community moved about the country, their animals accompanied them. Protecting and feeding the animals were a big part of the symbiotic relationship between the animals and the humans. Slowly people in agricultural societies owned dairy animals that they milked for domestic and local (village) consumption, a typical example of a cottage industry. The animals might serve multiple purposes (for example, as a draught animal for pulling a plough as a youngster, and at the end of its useful life as meat). In this case the animals were normally milked by hand and the herd size was quite small. This small cottage industry took the shape of Dairy farming. Dairy farming is a class of agricultural or an animal husbandry enterprise, for long-term production of milk, usually from dairy cows but also from goats and sheep, which may be either processed on-site or transported to a dairy factory for processing and eventual retail sale. Dairy farming has been part of agriculture for thousands of years. Until the late 19th century, the milking of the cow was done by hand. The first milking machines were an extension of the traditional milking pail. With the availability of electric power and suction milking machines, the production levels increased tremendously. With industrialisation and urbanisation, the supply of milk became a commercial industry, with manufacture of many by products like Cream and butter, Skimmed milk, Casein, Cheese, Whey, Yogurt, Milk powders etc. 10
  • 11. DAIRY INDUSTRY IN INDIA Indian dairy Industry - a profile The Dairy Industry in India made rapid progress, particularly during the last two decades. Today, INDIA occupies first position in milk production in the world, surpassing the U.S. Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. The liberalization of the Indian economy beckons to MNC's and foreign investors alike. The credit definitely goes to operation flood, which has played a key role in the development of dairying. The employment potential of Indian Dairy sector is substantial. This sector provides additional income and generates job opportunities for 180 million farmer families. More than 70% of marginal farmers and labourers maintain dairy animals to supplement their incomes. In India, there are 10.1 million farmers who are members of 77,000 village Dairy Co-operative Societies, each of which is affiliated to one of 170 district and regional Co-operative Unions, which in turn are a part of state Co-operative unions, which in turn are apart of a state Co-operative Marketing Federation. The Co-operative sector has contributed significantly for the success of White Revolution in India. There are more than 97,000 milk Co-operative Societies in 264 districts. 11
  • 12. This sector is growing at the rate of 6.5% per annum. The first large scale and systematic breakthrough in Dairy operation milk producers union was at ANAND (ANAND MILK UNION LIMITED) , Gujarat abbreviated to “AMUL” which in vernacular means HIGHLY VALUABLE or “BEYOND ALL PRICES”. INDIAN DAIRY CORPORATION (IDC): The INDIAN DAIRY CORPORATION (IDC) was set up under companies Act on 13th Feb 1970. It is a government of India under taking. The immediate need to set up IDC was to handle the “OPERATION FLOOD”. It became mainly a financing – cum promotional agency of central government. OBJECTIVES: To promote dairy industry in the country. To assist the state government and other organization including co- operative societies interested in the promotion of dairy industry to meet the requirement of milk & milk products. To provide a package of technical inputs for enhancement of milk production. Resettlement of city based cattle in the rural areas. To assist in expanding the capacity and operation of existing dairies in big cities and rural areas. To assist development of allied industry required to meet the needs of dairy development. 12
  • 13. DAIRY INDUSTRY IN ANDHRA PRADESH: The milk producers have faced a lot of problems in the process of production and marketing of milk namely improper transport facilities, poor technology and absence organized system of processing, marketing and pricing. It was at this context, that the Govt. of A.P. has viewed to continue a „DAIRY DEVELOPMENT CORPORATION‟ to safeguard the interests of milk producers and ensuring adequate supply of flush milk at a reasonable price to the urban consumers. As a result the „APDDCF‟‟ came into the existence on 2nd April, 1974. A.P. has an excellent potential for milk production with the progressive farmers who are responsive to the new technology and scientific practices. 13
  • 14. DAIRY DEVELOPMENT PARTICULARS The dairy development in A.P. according to 2008 figures has been presented in the following table. Milk products factories 07 District dairies 10 Milk chilling centers 48 Milk collection centers 1400 Village milk producers co-operative societies 5200 Milk collection routes 267 Milk producers 57200 Villages covered for collection of milk 10000 Milk consumers 650000 Cattle feed plants 6 Women Members in Unions 5000 Cash paid to milk producers 62 Crores 14
  • 15. A.P. DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION (APDDFC) APDDFC was constituted on 2nd April in 1974 with an aim to implement OPERATION FLOOD – 2 programme through active involvement of producers in organizing milk production, procurement, processing and marketing a three – tier co-operation structure as per the national policy of government of India. The “Three – Tier” system consists of primary unions at district milk shed level and federation at state level. Indian Dairy Development Corporation owns the responsibility of implementation of operation flood programmes, which provides money assistance of up to 70% towards loans and 30% as subsidy. OBJECTIVES: 1. Development of infra – structure for procurement of milk in rural areas of A.P. and ensure assured market for milk products throughout the year as well as the best remunerative prices. 2. Fulfill the growing needs for milk & milk products of the consuming public in A.P and outside. 3. Organize the co – operative structure of milk producers at the village and district levels. 4. Supplement the programme extension and inputs with particular references to feed and fodder production and implement intensive cross – breeding programme for milk cows to increase milk production. 5. Carry out human resource development programme to provide effective leadership and management skills in the service of the rural producers. 15
  • 16. THE CO-OPERATIVE MILK PRODUCERS UNION IN A.P.: Sri Vijaya Visakha Co-operative Milk Producers Union,Vizag. The Godavari Co-operative Milk Producers Union, RAJAHMUNDRY. The Krishna District Co-operative Union, VIJAYAWADA. The Guntur District Co-operative union, VADLAMUDI. The Prakasam District Co-operative union, ONGOLE. The Nellore District Co-operative union, NELLORE. The Chittoor District Co-operative union, CHITOOR. The Cuddapah District Co-operative union, PRODDUTUR. The Kurnool District Co-Operative union, KURNOOL. The Nalgonda District and Co-operative Union, HYDERABAD. Medak District and Co-operation Union, MEDAK. 16
  • 17. COMPANY PROFILE Sri Vijaya Visakha Milk Producers Company Limited., [Visakha Dairy], Visakhapatnam in Andhra Pradesh, is having their procurement operations in Coastal Andhra districts, viz, Srikakulam, Vizianagaram, Visakhapatnam & in East Godavari and Sales operations across India. The Government after considering dairying as one of the instruments for bringing socio economic development in the rural areas, To overcome this object, the Dairy was started in the year 1973 with handling capacity of 10000 liters per day in Visakhapatnam under cooperative act with milk procurement operations in 50 villages. Now the Dairy is procuring the milk from 2744 villages in Costal Andhra areas by serving 2,07,925 milk producers. The Dairy was converted to Mutually Aided Cooperative Act-1995 in the year 1999 as „Sri Vijaya Visakha District Milk Producers Mutually Aided Cooperative 17
  • 18. Union' and the Dairy was converted to Company Act-1956 with effect from 06.01.2006 as „SriVijayaVisakha Milk Producers Company Limited‟. The Procurement and Production graph growth is increasing year after year with more participation of the rural farmers. Now the Visakha Dairy is one of the fastest growing Milk & Milk Products Manufacturing organizations. M ISSION STATEMENT The following is the mission statement of Visakha Dairy. “Visakha Dairy is committed to enhance the Milk Procurement through Technical inputs by providing Quality services to our Member Producers by ensuring economic viability to improve socioeconomic conditions of our Members. Visakha Dairy is also committed to supply quality milk and milk products to consumers. Our Dairy shall become top dairy in the country with its inspired team of employees. We, the inspired Team of Employees are dedicated to  Co-operation  Honesty  Discipline & Time  Quality & Purity 18
  • 19.  Hard Working  Transparency  Trust & Belief on Organization  Mutual Respect  Skill Development  Education QUALITY POLICY Visakha Dairy endeavours to be one of the largest processors of milk and manufactures of milk products in India. We are committed to provide hygienic, safe and nutritious products while meeting the statutory and legal requirements to achieve customer satisfaction and in-turn to improve the economy of our member producers. To this effect the management is committed to communicate, implement, maintain and continually improve the Quality and Food Safety Management Systems in the Dairy. 19
  • 20. THE GROWTH OF VISAKHA DAIRY Started Dairy with a handling capacity of 10000 LPD 1966 - (Lts. Per Day) operations in Visakhapatnam. 1973 - Union registered under cooperatives Act. Inauguration of 50000 LPD Visakha Cooperative Modern Dairy. 1977 - By Sri.Jalagam Vengala Rao Chief Minister of AP. Inauguration of 25000 LPD MCC (Milk Chilling Center) at 1980 - Narasipatnam. Joined as member of the AP Dairy Development Coop Federation 1981 - Ltd. At AP level. Operation area of the Union extended to Srikakulam and 1982 - Vizainagaram districts and the name changed to Sri Vijaya Visakha District Cooperative Milk producers Limited. MCC Srikakulam merged with Visakha Coop Dairy & capacity 1985 - expanded from 12000 to 20000 LPD. 1986 - Expansion 50000 to 100000 LPD. 1987 - NMG (National Milk Grid) milk sales started. Expansion plant 100000 to 150000 litres per day. Establishment 1989 - of milk producers & employees‟ education, health and medical welfare trust. 1991 - Expansion of 150000 to 200000 LPD. 1996 - Inauguration of 30000 LPD chilling center at Vizianagaram. 20
  • 21. 1998 - Inauguration of 13 MT powder plant at Visakhapatnam. Converted to Mutually Aided Cooperative Act‟95. Name also 1999 - changed as “Sri Vijaya Visakha District Milk Producers Mutually Aided Cooperative Union Limited” Dairy expansion 200000 to 300000 LPD Commenced milk 2000 - procurement in East Godavari District Commissioning of milk packing station at MCC Kakinada Inauguration of Aseptic packing station (APS) Commissioning of 2001 - milk packing station at Hyderabad & sales started at Rajahmundary & Hyderabad. Dairy expansion 300000 to 500000 LPD Inauguration of milk 2002 - pouch packaging station. 2003 - ISO 9001:2000 & HACCP certification. 2004 - Up gradation of HACCP to revised standard. Converted to Company Act‟56. Name also changed as “Sri 2006 - Vijaya Visakha Milk Producers Company Limited” Inauguration of Aseptic packing station (APS) with New Tetra 2008 - Pack A1 Machine 21
  • 22. OTHER ACTIVITIES Visakha Dairy is not only concentrating on the farmer‟s cattle welfare but is equally giving priority for the welfare of farmer families in different dynamics like …. ► HEALTH ► EDUCATION ► SOCIO-ECONOMIC MEASURES In this process Visakha Dairy Chairman, Sri Adari Tulasi Rao established a Welfare Trust in 1989 named as Milk Producers and Employee's Education Health and Medical Welfare Trust (MP & EEH & MW Trust). The main aim of the Trust is to extend Medical Health and Educational facilities particularly to farmers and their families. In this direction the trust has established a modern hospital fully equipped with the latest technology and employed specialists and super specialists. Further, it has established schools and colleges for rural poor and farmer's children. The Trust's activities are being carried out in 8.25 acres of land in the vicinity of city of Visakhapatnam. Various social welfare activities have been undertaken since its establishment which was applauded by various Government officials, Chief Ministers, Parliamentarians, Ministers and other Public Figures. 22
  • 23. Health Krishi Trust Hospital is one of the most well equipped and best Medical Trust Hospitals in the Green City of Visakhapatnam. The Hospital is a 100 bedded modern multi – speciality cum critical care referral hospital. To give the patient best care round the clock, The hospital is fully infrastructured with Hi- Tech equipment of world class quality to provide best medical care. Krishi Trust Hospital is situated in a quiet and serene place in Sheelanagar away from the noise and pollution of the city. Hospital Equipment Nursing College 23
  • 24. Education Trust provides the residential educational facility with subsidised rates for visakha dairy milk producers and employees childrens & general public also. It provides free education to orphans recommended by the local village heads as well as to children who are below poverty level. Providing Education from Primary Level to Junior College & Nursing College. Computer education is provided from 3rd class onwards. The trust has Residential facility for 300 Students. School 24
  • 25. The trust believes in value based education. The teacher student ratio is 1:25 in true spirit. Students are disciplined and hard working, so every year the school gets good results in the general public exams. The aim is to impart qualitative education. There is a well equipped Laboratory, Library, Multi Media Computer Lab. We have a playground with sports facilities. Our Students are selected for national sports, and sports academy in Andhra Pradesh College & Hostel 25
  • 26. Socio-Economic Measures Various social welfare activities have been taken up by the Trust. Among the other activities, the Trust has provided drinking water to rural poor by digging Bore Wells in villages and arranging water channels for farmers by digging old and new reservoirs, and also constructed bridges on rivers, where crossing rivers were impossible for rural people in rainy season. Major task of the Trust is identifying, training, providing employment to weaker sections who are not having any support from the society. Hither the Trust has provided employment directly and indirectly to 300 people. Providing Employment to Physically Handicapped, every Year by Conducting interviews with cooperation of visakha dairy. Providing employment to women, who are physically abused by their family and who have no other source of living. roviding hearing aids to deserving deaf people after a thorough check-up by the concerned physicians, providing wheel chairs to the physically handicapped people 26
  • 31. MARKETING Marketing is the process of identifying, anticipating and then meeting the needs and requirements of consumers in order to make a profit. In contrast, selling involves persuading customers that your products or services provide the benefits that they are looking for. You can therefore see that there is an important difference between marketing and sales. Marketing puts the needs of the customer first. Through market research, it is possible to find out about customer tastes and requirements. In contrast selling takes place after marketing has helped the business to identify those sorts of goods that customers are looking for. The sales person is convinced that theirs is the best in the market. It is their job to then convince customers that this is the case. Aims of marketing department Marketing involves a range of processes concerned with finding out what consumers want, and then providing it for them. This involves four key elements, which are referred to as the 4P's (the marketing mix). A useful starting point therefore is to carry out market research to find out about customer requirements in relation to the 4Ps. 31
  • 32. Market research There are two main types of market research: Quantitative research involves collecting a lot of information by using techniques such as questionnaires and other forms of survey. Qualitative research involves working with smaller samples of consumers, often asking them to discuss products and services while researchers take notes about what they have to say. The marketing department will usually combine both forms of research. The marketing department will seek to make sure that the company has a marketing focus in everything that it does. It will work very closely with production to make sure that new and existing product development is tied in closely with the needs and expectations of customers. Modern market focused organisations will seek to find out what their customers want. For example, financial service organisations will want to find out about what sort of accounts customers want to open and the standard of service they expect to get. Retailers will seek to find out about customer preferences for store layouts and the range of goods on offer. Airlines will find out about the levels of comfort that customers desire and the special treatment that they prefer to receive. A useful definition of marketing is the anticipation and identification of customer needs and requirements so as to be able to meet them, make a profit or achieve other key organisational objectives. 32
  • 33. The marketing department of a firm that produces milk carries out research to find out the sorts of new developments that their customers are looking for. They ask customers to tell them what improvements they would like to see to existing products and what new products they would like developing. They test market a range of possible products on customers. As a result of the marketing process they are able to come up with the most suitable products. Nature and role of marketing All modern organisations engage in marketing so as to be able to please and win the loyal support of their customers. Gillette engages in marketing to find out about the needs and requirements of shavers, banks engage in marketing research to find out about its customers financial services requirements, and the Inland Revenue engages in market research to find out about the needs and requirements of taxpayers and other clients, dairy industry engages in market research to find out about the competitors in the market and how to tackle the problem of competition. The Chartered Institute of Marketing uses the following definition of marketing: 'Marketing is the management process responsible for identifying, anticipating and satisfying consumer requirements profitably.' T he definition places consumers at the centre of the organisation's activities - whether they be consumers of Kellogg's Special K, the pupils or parents of children at the local school, or people buying milk from the dairy. 33
  • 34. Some organisations are very close to their consumers - for example, a post office in a small town. For other organisations consumers may be thousands of miles away. The principle that the 'Consumer is King and Queen' is just as relevant to the organisation engaged in marketing. There are a number of key ingredients to the Chartered Institute of Marketing definition: Identifying - This will involve answering questions such as 'How do we find out what the consumer's requirements are?' and 'How do we keep in touch with their thoughts and feelings and perceptions about our good or service. This is a key purpose of market research. Anticipating - Consumer requirements change all the time. For example, as people become richer they may seek a greater variety of goods and services. Anticipation involves looking at the future as well as at the present. What will be the Next Best Thing (NBT) that people will require tomorrow. Satisfying - Consumers want their requirements to be met. They seek particular benefits. They want the right goods, at the right price, at the right time in the right place. Profitability - Marketing also involves making a margin of profit. An organisation that fails to make a profit will have nothing to plough back into the future. Without the resources to put into ongoing marketing activities, it will not be able to identify, anticipate or satisfy consumer requirements. 34
  • 35. Marketing model People often get confused between the marketing of a product and the selling of a product. Marketing is concerned with identifying, anticipating and meeting the needs of customers in such a way as to make a profit for the organisation. Market research is thus an important element of marketing because this is the process involved in finding out what customers want. Meeting customer requirements then involves applying a relevant marketing mix i.e. providing the right product, at the right price, through the right distribution channels (place) and supported by the most suitable promotional and advertising activity. Strategic and tactical marketing Marketing operates at two levels within the organisation. 1. At one level marketing is a strategic discipline - it is concerned with major long term decisions that affect the whole organisation. 35
  • 36. In particular strategic marketing involves seeing marketing activity as being essential to everything the organisation does. Given this strategic approach everyone in the organisation has a responsibility for meeting needs of internal and external customers. 2. As well as strategic marketing, marketing activity is also concerned with tactical marketing. Tactical marketing is all about applying the marketing mix in the most appropriate way. Tactical marketing involves such activities as: organising relevant promotions, setting prices, and adjusting price in line with customer expectations, what the competition is doing etc. positioning the product, and periodically organising relaunches and adjustments to the product in line with changing market conditions. organising the most appropriate channels through which to distribute the product. The most appropriate marketing model is one that combines marketing strategy with tactics to create a totally customer facing organisation. Market planning Marketing is the process of developing and implementing a plan to identify, anticipate and satisfy consumer demand, in such a way as to make a profit. The two main elements of this plan are market research to identify and anticipate customer requirements and the planning of an appropriate marketing mix to meet these requirements. Market research involves gathering and recording information about consumers, market, product, and the competition in an organised way. 36
  • 37. The information is then analysed and used to inform marketing decisions. There are three main ways of gathering information for market research: 1.From internal information already held by an organisation, e.g. details of existing customers and their spending habits. 2. External primary information - i.e. information collected at first hand by interviewing customers and potential customers to get their views about a company, products and services. 3. External secondary information - using published sources of information e.g. those produced by marketing organisations about products, markets and brands. Marketing planning can then be used: 1. To assess how well the organisation is doing in its markets. 2. To identify current strengths and weaknesses in these markets. 3. To establish marketing objectivesto be achieved in these markets. 4. To establish a marketing mix for each market designed to achieve organisational objectives. A simple definition of market research is 'keeping those who provide goods and services in touch with the needs and wants of those who buy the goods and services.' A marketing strategy is an overall marketing plan designed to meet the needs and requirements of customers. The plan should be based on clear objectives. A number of techniques will then be employed to make sure that the marketing plan is effectively delivered. Marketing techniques are the tools used by the marketing department. The marketing department will set out to identify the most appropriate techniques to employ in order to make profits. 37
  • 38. These marketing techniques include public relations, trade and consumer promotions, point-of-sale materials, editorial, publicity and sales literature. Marketing techniques are employed at three stages of marketing: Market research enables the organisation to identify the most appropriate marketing mix. The mix should consist of: the right product sold at the right price in the right place using the most suitable promotional techniques. To create the right marketing mix, marketers have to ensure the following: The product has to have the right features - for example, it must look good and work well. The price must be right. Consumers will need to buy in large numbers to produce a healthy profit. The goods must be in 'the right place at the right time'. Making sure that the goods arrive when and where they are wanted is an important operation. 38
  • 39. The target group needs to be aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output. Finally techniques need to be applied to monitor the success of marketing activity. For example when carrying out advertising it is helpful to track consumer awareness of the adverts and their messages. Evaluation can also take the place of other aspects of the marketing mix e.g. which distribution channels were most effective? Was the chosen price the right one? etc. Business behaviour: marketing Today businesses have an increasing market focus. If organisations are to serve the needs of their customers they need to be structured in such a way as to identify and meet customer requirements. Businesses therefore need to behave in such a way that they recognise the needs of the customer. A company prospers best when everyone in it believes that success depends on the excellence of his or her contribution. Short-term decisions made many times a day by individuals determine the quality of that day's work. The governing principle should be that everybody has a customer - either outside the company (the traditional 'customer') or inside the company (the internal customer). Both kinds of customer expect to be supplied with the product or service they need, on time and as specified. The principle holds good for everyone in the company, whatever their level of skill and experience, whether their 'product' is answering a telephone in a helpful way or masterminding a major new project. It works to everyone's benefit. 39
  • 40. It gives the individual genuine responsibility and scope for initiative and it virtually guarantees that the company's performance will be improved. However, individual behaviours will only match the organisation objective of being customer focused if the right sorts of structures are created. Hence the importance of developing structures such as team working and empowering employees to make decisions rather than be told what to do. Advertising, promotion, packaging and branding Advertising, promotion, packaging and branding are important marketing tools which are used to make products and services more desirable and hence increase sales and profits. Any form of publicity is advertising. There are two main forms of advertising although in practice the two are inter-related. The informational aspect of advertising involves providing information about products, services, or about important issues. For example, the government provides information about the dangers of cigarette smoking, which is an example of informative advertising. Persuasive advertising goes further and uses a persuasive message, for example by: showing a famous personality (e.g. Film Stars) using the product comparing the advantages of one product with another Using sex appeal. 40
  • 41. There are a number of processes involved in producing effective advertising, including: identifying the most appropriate market segments to target the advertising choosing the best possible media, e.g. television, radio, posters etc projecting the right message in the adverts getting the timing of the advertisements right tracking the effectiveness of the advertising, e.g. checking to see how many people can recall the advert and its message. Advertising is just one way of promoting a product. Promotion is the business of communicating with customers. There are a number of ways of promoting products and services, including: in-store promotion e.g. giving away free samples in a supermarket publicity in the media, competitions, and sponsorship PR - public relations activities - i.e. presenting the public image of a company to a wide audience presenting products in attractive packaging creating an attractive brand for a product. Sponsorship Packaging typically refers to the material in which a product is packed - or more specifically, the surface design on the material. However, a wider definition includes all the various aspects of presenting a product - e.g. the shape size and appearance of the packaging, colour and design, the convenience of using the packaging etc. 41
  • 42. A brand is a product with a unique, consistent and well recognised character. The branding of the product therefore involves projecting and developing this character. The uniqueness can come either from an actual product or from its image - usually created by its manufacturer through advertising and packaging. The consistency comes mainly from the consistence of its quality and performance, but it also reflects the consistency of the advertising and packaging. A brand is well-recognised because it has been around for a long time. It takes years to develop a brand. CONSUMER PREFERENCE 42
  • 43. All marketing starts with the consumer. So consumer is a very important person to a marketer. Consumer decides what to purchase, for whom to purchase, why to purchase, from where to purchase, and how much to purchase. In order to become a successful marketer, he must know the liking or disliking of the customers. He must also know the time and the quantity of goods and services, a consumer may purchase, so that he may store the goods or provide the services according to the likings of the consumers. Gone are the days when the concept of market was let the buyer‟s beware or when the market was mainly the seller‟s market. Now the whole concept of consumer‟s sovereignty prevails. The manufacturers produce and the sellers sell whatever the consumer likes. In this sense, “consumer is the supreme in the market”. As consumers, we play a very vital role in the health of the economy local, national or international. The decision we make concerning our consumption behavior affect the demand for the basic raw materials, for the transportation, for the banking, for the production; they effect the employment of workers and deployment of resources and success of some industries and failures of others. Thus marketer must understand this. Preference (or "taste") is a concept, used in the social sciences, particularly economics. It assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they provide. More generally, it can be seen as a source of motivation. In cognitive sciences, individual preferences enable choice of objectives/goals. The study of the consumer preference not only focuses on how and why consumers make buying decision, but also focuses on how and why consumers make choice 43
  • 44. of the goods they buy and their evaluation of these goods after use. So for success of any company or product promotion it is very necessary to depart its concentration towards consumer preference. The underlying foundation of demand is a model of how consumers behave. The individual consumer has a set of preferences and values whose determination are outside the realm of economics. They are no doubt dependent upon culture, education, and individual tastes, among a plethora of other factors. The measure of these values in this model for a particular good is in terms of the real opportunity cost to the consumer who purchases and consumes the good. If an individual purchases a particular good, then the opportunity cost of that purchase is the forgone goods the consumer could have bought instead. We develop a model in which we map or graphically derive consumer preferences. These are The consumer‟s objective is to choose the bundle of goods which provides the greatest level of satisfaction as they the consumer define it. But consumers are very much constrained in their choices. These constraints are defined by the consumer‟s income, and the prices the consumer pays for the goods. THE THEORY OF THE CONSUMER Consumer make decisions by allocating their scarce income across all possible goods in order to obtain the greatest satisfaction. Formally, we say that consumers maximize their utility subject to budget constraint. Utility is defined as the satisfaction that a consumer derives from the consumption of a good. 44
  • 45. As noted above, utility‟s determinants are decided by a host of noneconomic factors. Consumer value is measured in terms of the relative utilities between goods. These reflect the consumer‟s preferences. Theory of Consumer Preferences Consumer preferences are defined as the subjective (individual) tastes, as measured by utility, of various bundles of goods. They permit the consumer to rank these bundles of goods according to the levels of utility they give the consumer. Note that preferences are independent of income and prices. Ability to purchase goods does not determine a consumer‟s likes or dislikes. . The Need to Understand Customer Preference Have you ever wondered why your company often loses relatively satisfied customers? Why is it that customers will often indicate they are satisfied with how they have been treated but then leave for a competitor at the first opportunity? Why is customer defection often unrelated to price? The answers to these and other related questions are found in coming to an understanding of customer preference. The idea that customers prefer one product or one service over another is not new. The ability to identify and measure the elements of such preference decisions with any accuracy and reliability has only recently become available. Research into this area of consumer behavior has brought understanding to some of the major issues with standard customer satisfaction research. 45
  • 46. Most importantly, we have come to realize that high customer satisfaction does not assure continued customer preference. Satisfaction research over the past fifteen years demonstrates that high satisfaction scores, while a measure of corporate performance on a set of important criteria, do not adequately explain the composition of preference formation and therefore often serve as insufficient predictors of sustained preference or what is normally referred to as customer loyalty. Loyalty as a concept has also shown itself to be difficult to define. Like beauty, loyalty is truly in the eye of the beholder. We understand there are different types and degrees of loyalty and some of these are not appropriate in describing the relationship between a consumer and a company. However, preference (defined as The power or ability to choose one thing over another with the anticipation that the choice will result in greater satisfaction, greater capability or improved performance) has demonstrated the ability to be effectively measured and to provide meaningful insight into the choices consumers make when selecting one provider over another and when determining to continue a relationship over time. 46
  • 47. REASONED ACTION MODEL OF CONSUMER PREFERENCE Conviction that the choice leads to certain desired functional outcomes Evaluation of the Attitude toward the outcomes behavior Conviction that the choice leads to certain desired emotive outcomes Intention Preference Behavior Conviction that the choice is considered correct by others Subjective comparison norm Motivation to comply with the opinion of others 47
  • 48. The important contribution of the reasoned action model is the realization that consumers utilize the model in all purchase experiences to a lesser or greater extent. Of equal importance is the realization that the components used to make a preference decision are also the ones employed by a consumer to evaluate the performance success of the product or service purchased and the company responsible for them. Therefore, as the components of preference change, the elements influencing satisfaction change accordingly. The relationship is dynamic and fluid therefore static or predetermined satisfaction analytic packages often miss the most important elements of preference and can create a false sense of security on the part of companies who think that since their customer satisfaction scores are high they must in turn have relatively loyal customers. 48
  • 49. Data Analysis and Interpretation 49
  • 50. DATA ANALYSIS AND INTERPRETATION I met around 100 sellers of milk and found the following information from the agent‟s answer of the relevant questionnaire. These charts are made according to the found data on 100 questionnaires. 1. Total Number of shops for Visakha and Heritage. PRODUCT NO. OF RESPONDENTS VISAKHA 60 HERITAGE 40 NO. OF RESPONDENTS 70 60 50 40 30 NO. OF RESPONDENTS 20 10 0 VISAKHA HERITAGE 50
  • 51. BRAND PREFERENCE VISAKHA HERITAGE INTERPRETATION Here, I have taken a sample size of 100 agents to understand the total market share of Heritage and Visakha brands. We can see that VISAKHA has a better share in the market than HERITAGE. Only 40% shops sell the HERITAGE out of 100 and 60% sell Visakha. This clearly indicates the preference levels of Visakha among customers when compared to Heritage. 51
  • 52. 2. How many Crates of Visakha and Heritage do you sell in a day? PRODUCT NO. OF CRATES VISAKHA 790 HERITAGE 748 NO. OF CRATES 800 790 780 770 760 NO. OF CRATES 750 740 730 720 VISAKHA HERITAGE 52
  • 53. NO. OF CRATES SOLD ON A DAILY BASIS HERITAGE 49% VISAKHA 51% INTERPRETATION Sale of Visakha milk per day is 790 crates and sale of Heritage milk is 748 crates per day. It is clearly evident that the sale of Visakha milk is better than the sale of Heritage milk. 53
  • 54. 3. Is the availability of Visakha milk sufficient? RESPONSE NO. OF RESPONDENTS YES 80 NO 20 NO. OF RESPONDENTS 90 80 70 60 50 40 NO. OF RESPONDENTS 30 20 10 0 YES NO 54
  • 55. SUFFICIENCY OF MILK AVAILABILITY NO 20% YES 80% INTERPRETATION In my survey 80% agents are satisfied with the availability of Visakha milk and 20% agents are not satisfied with the availability of Visakha milk. 55
  • 56. 4. Are you satisfied with product delivery time? RESPONSE NO. OF RESPONDENTS YES 57 NO 43 NO. OF RESPONDENTS 60 50 40 30 NO. OF RESPONDENTS 20 10 0 YES NO 56
  • 57. SATISFACTION WITH PRODUCT DELIVERY TIME YES NO INTERPRETATION 53% of agents said that delivery time of Visakha Milk is good where as 47% of agents felt that the delivery time of Visakha Milk is not so good causing inconvenience to the collecting agents. 57
  • 58. 5. Margin of Sales is sufficient or not? RESPONSE NO. OF RESPONDENTS YES 30 NO 70 NO. OF RESPONDENTS 80 70 60 50 40 NO. OF RESPONDENTS 30 20 10 0 YES NO 58
  • 59. Satisfaction with Margin of Sales YES NO INTERPRETATION Most of the agents were not happy with the margin on sales paid to them by Visakha Dairy. The level of dissatisfaction is more than the level of satisfaction. 59
  • 60. 6. Behavior of milk delivery van driver is? RESPONSE NO. OF RESPONDENTS EXCELLENT 56 GOOD 24 AVERAGE 12 BAD 8 NO. OF RESPONDENTS 60 50 40 30 NO. OF RESPONDENTS 20 10 0 EXCELLENT GOOD AVERAGE BAD 60
  • 61. BEHAVIOUR OF DELIVERY VAN DRIVER EXCELLENT GOOD AVERAGE BAD INTERPRETATION In my survey, I understood that 56% agents felt that the behavior of driver is excellent, 24% agents said that it is good, 12% agents said that it is average and 8% said that is bad. It means that on an average the behavior of the delivery van driver is good. 61
  • 62. 7. Quality of Visakha Milk is RESPONSE NO. OF RESPONDENTS EXCELLENT 33 GOOD 46 AVERAGE 13 BAD 8 NO. OF RESPONDENTS 50 45 40 35 30 25 20 NO. OF RESPONDENTS 15 10 5 0 EXCELLENT GOOD AVERAGE BAD 62
  • 63. QUALITY OF VISAKHA MILK EXCELLENT GOOD AVERAGE BAD INTERPRETATION During the survey 33% agents said that the quality of Visakha milk is excellent, 46% said good, 13% said average and only 8% said that the quality of Visakha milk is bad. This gives a clear picture that visakha milk has to take certain measures to improve the quality of milk to satisfy all the people. 63
  • 64. 8. Customer purchase milk because of FACTOR NO. OF RESPONDENTS PRICE 23 QUALITY 44 TASTE 10 AVAILABILITY 15 OTHERS 8 NO. OF RESPONDENTS 50 45 40 35 30 25 20 15 NO. OF RESPONDENTS 10 5 0 64
  • 65. REASON BEHIND BUYING MILK PRICE QUALITY TASTE AVAILABILITY OTHERS INTERPRETATION In my survey agents said that 23% customers purchase Visakha milk due to price, 44% due to quality, 10% due to taste, 15% due to availability and 8% due to other reasons. 65
  • 66. Report of Consumer Q- Which Brand of milk do you use? PRODUCT NO. OF RESPONDENTS VISAKHA 47% HERITAGE 33% OTHERS 20% NO. OF RESPONDENTS 50% 45% 40% 35% 30% 25% NO. OF RESPONDENTS 20% 15% 10% 5% 0% VISAKHA HERITAGE OTHERS 66
  • 67. BRAND PREFERENCE BY CUSTOMERS VISAKHA HERITAGE OTHERS INTERPRETATION During my survey it was observed that 47% consumers prefer Visakha milk, while 33% consumers prefer Heritage milk and 20% consumers prefer other Milk brands including loose milk supplied by milkmen. 67
  • 68. Q- How do you know about Visakha Milk? SOURCE NO. OF RESPONDENTS Advertisements 53% Shopkeeper 32% Others 15% NO. OF RESPONDENTS 60% 50% 40% 30% NO. OF RESPONDENTS 20% 10% 0% Advertisements Shopkeeper Others 68
  • 69. SOURCE Advertisements Shopkeeper Others INTERPRETATION Wh e n c u s t o me r s we r e a s k e d h o w t h e y c a me t o k n o w a b o u t V i s a k h a M i l k , 53% of customers replied through advertisement, 32% of Customers replied through their local shopkeepers and 15% of customers replied by other means. 69
  • 70. Q- What is the average Quantity of milk Consumed by you? QUANTITY NO. OF RESPONDENTS 2+ ltrs 30% 2 ltrs 45% 1+ ltrs 13% 1 ltr 12% QUANTITY CONSUMED 50% 45% 40% 35% 30% 25% NO. OF RESPONDENTS 20% 15% 10% 5% 0% 2+ ltrs 2 ltrs 1+ ltrs 1 ltr 70
  • 71. QUANTITY OF MILK CONSUMED 2+ ltrs 2 ltrs 1+ ltrs 1 ltr INTERPRETATION I observed in my survey that 30% of consumers consume 2+ ltrs milk per day, 45% consumers consume 2 ltrs milk per day and 13 % consumers consume 1+ ltr per day, while only 12% consumers consume 1 liter of milk per day. 71
  • 72. Q- Why do you choose a particular brand? REASON NO. OF RESPONDENTS HOME DELIVERY 10% EASY AVAILABILITY 23% PRICE 22% QUALITY 45% NO. OF RESPONDENTS 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% NO. OF RESPONDENTS 0% 72
  • 73. REASON FOR BRAND PREFERENCE HOME DELIVERY EASY AVAILABILITY PRICE QUALITY INTERPRETATION It was observed during the survey that different persons consume a particular brand because of many factors. 10% of consumers consume a particular Brand of milk because of Home Delivery, while 23% of consumers consume a particular band of milk because of Easy availability and 22% of consumers consume a particular brand because of Price, 45% of consumers consume a Particular brand because of Quality of the product provided to them by the company. 73
  • 74. Q- Why are you using Visakha Milk? REASON NO. OF RESPONDENTS HOME DELIVERY 5% EASY AVAILABILITY 28% PRICE 16% QUALITY 51% NO. OF RESPONDENTS 60% 50% 40% 30% NO. OF RESPONDENTS 20% 10% 0% HOME EASY PRICE QUALITY DELIVERY AVAILABILITY 74
  • 75. REASON FOR PREFERING VISAKHA MILK HOME DELIVERY EASY AVAILABILITY PRICE QUALITY INTERPRETATION When the customers using Visakha milk were asked why they use Visakha milk, 5% of customers replied with the answer because of Home Delivery of the Milk, 28% of customers replied with the answer because of Easy Availability, while 16% of customers replied with the answer that because price is very good and rest 51% replied that the quality of Visakha milk is very good. So maximum number of customers prefer visakha milk because of its good quality. 75
  • 76. Q- Why are you not using Visakha Milk? REASON NO. OF RESPONDENTS HOME DELIVERY 9% EASY AVAILABILITY 18% PRICE 47% QUALITY 26% NO. OF RESPONDENTS 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% NO. OF RESPONDENTS 0% 76
  • 77. REASONS FOR NOT PREFERING VISAKHA MILK HOME DELIVERY EASY AVAILABILITY PRICE QUALITY INTERPRETATION When customers not using Visakha milk were asked reason for not using the Visakha milk many reasons were found. 9% of the customers do not prefer Visakha because of its high price, 18% of consumers do not consume Visakha milk because of non-availability of the Visakha milk at their nearest shopkeepers, while 47% of customers do not use Visakha milk because of no home delivery service, 26% of consumers do not prefer Visakha milk because of Low Quality of Visakha milk. So the response is mixed. 77
  • 78. Q- How do you Purchase Milk? RESPONSE NO. OF RESPONDENTS YOURSELF 83 HOME DELIVERY 17 NO. OF RESPONDENTS 90 80 70 60 50 40 NO. OF RESPONDENTS 30 20 10 0 YOURSELF HOME DELIVERY 78
  • 79. MODE OF PURCHASE YOURSELF HOME DELIVERY INTERPRETATION: When customers were asked, how they Purchase the milk 83% of customers said on their own, while 17% of the customers responded with the answer Home Delivery. 79
  • 80. Q- What is your overall experience with Visakha. RESPONSE NO. OF RESPONDENTS EXCELLENT 10% GOOD 61% FAIR 22% POOR 7% NO. OF RESPONDENTS 70% 60% 50% 40% 30% NO. OF RESPONDENTS 20% 10% 0% EXCELLENT GOOD FAIR POOR 80
  • 81. OVER ALL RESPONSE WITH VISAKHA EXCELLENT GOOD FAIR POOR INTERPRETATION: When customers were asked what their overall experience with Visakha was then, 10% of customers replied with the answer excellent, 61% customers replied good, 22% customers replied fair and 7% of the customers responded with the answer poor. 81
  • 82. AWARENESS PURCHASE PREFERENCE PRODUCT PREFERENCE VISAKHA 30% HERITAGE 26% JERSEY 6% DODLA 13% AGRIGOLD 15% OTHERS 10% PURCHASE PREFERENCE 35% 30% 25% 20% 15% 10% 5% 0% VISAKHA HERITAGE JERSEY DODLA AGRIGOLD OTHERS 82
  • 83. WHAT INFLUENCES CONSUMER TO BUY VISAKHA MILK? PRODUCT PREFERENCE ADVERTISING 12% WORD OF MOUTH 18% ATTRACTIVE PACKING 5% DEALER 5% PRICE 10% QUALITY 40% OTHERS 10% PREFERENCE 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 83
  • 85. FINDINGS FINDINGS OF RETAILER SURVEY  Heritage is offering more incentives than Visakha.  Heritage has started to offer chilling equipments.  Most of the retailers associate themselves with Visakha milk.  Visakha products are sold more than others.  Retailer if provided more cooling equipment promises to stock more Visakha products.  Retailers have problem of advertising material, schemes related material of Visakha.  Retailers are more interested in products of those companies, which offers more margins to them.  Visakha Milk becomes scarce during the time of festivals etc.  Visakha is not trying to introduce new products in the market.  The packing of Visakha Products in not so attractive. 85
  • 86. SUGGESTIONS  Visakha should change the packing as it is not attractive and does not seem to be standard and hygienic.  Visakha should make 24hour availability of milk in the market in order to improve their Sales.  Visakha should offer more home delivery services to Increase sales  Visakha should offer refrigerators on installments to retailers.  Visakha should give emphasis on Punctuality and regularity in the Supply of milk.  Visakha should offer promotional schemes to retailers as is done by Heritage.  Visakha should offer some extra benefit to the customer and supplier.  Visakha should offer promotional schemes to retailers as free sample, gift packs  The organization should make elaborate arrangements for availability of milk at the time of festivals etc.  Visakha should provide home delivery facility to their consumers.  Visakha should launch some new products also.  Visakha should emphasize to provide better quality than others instead of increasing the sale.  Visakha should increase the number of retail shops, wher e the retail shops of Visakha is not available.  Visakha should emphasize on advertisement also. 86
  • 87. PLEASE ANSWER ALL QUESTIONS ASKED IN THE QUESTIONAAIRE AND SEEK FOR HELP IF ANY THING IS NOT CLEAR OR UNDERSTOOD TO YOU. NAME OF CUSTOMER: OCCUPATION: ______________________________________ ADDRESS: ______________________________________ MOBILE NUMBER: ______________________________________ No. OF FAMILY MEMBERS: 1 to 3, ( ) 3 to 5 ( ) , More than 5 ( ) MONTHLY INCOME: BELOW 5000 ( ) 15000 to 20,000, ( ) 20,000 to 50,000, ( ) MORE THAN 50,000 ( ) Q.No.1: Which brand of milk do you use? (a) Visakha ( ) (b) Vijaya ( ) (c) Others ( ) Q.No.2: How do you know about Visakha Milk? (a) Advertisement ( ) (b) Shopkeeper ( ) (c) Others ( ) Q.No.3: Quantity used by you (In liter)? (a) 3 liters ( ) (b) 2 liters ( ) (c) 1+ liters ( ) (d) 1 liter ( ) Q.No.4: Reason to choose a particular brand? (a) Home Delivery ( ) (b) Easily Available ( ) (c) Price ( ) (d) Quality ( ) 87
  • 88. Q.No.5: Reason for using Visakha? (a) Quality ( ) (b) Price ( ) (c) Availability ( ) Q.No.6: Reason for not using Visakha ? (a) High Price ( ) (b) Non Availability ( ) (c) Not regular supply ( ) (d) Bad Taste ( ) Q.No .7: How do you purchase milk ? (a) Yourself ( ) (b) Home Delivery ( ) Q.No.8: Response of customer about door delivery? (a) Yes ( ) (b) No ( ) Q.No.9: Response regarding extra charges for door delivery? (a) Yes ( ) (b) No ( ) Q.No. 10: What type of Visakha milk do you use? (a) Standardized ( ) (b) Full Cream ( ) (c) Toned Milk ( ) (d) Loose Milk ( ) Q.No.11: Change from one brand to another brand a) Yes ( ) b) No ( ) 88
  • 89. Q.No.12: Over all experience with Visakha a) Excellence ( ) b) Good ( ) c) Fair ( ) d) Poor ( ) Q.No.13: Your suggestion with respect to Visakha milk product? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………. 89
  • 90. RETAILER SURVEY FORM Name of the shop ___________________________ Address: __________________________________________________ Tel No.___________________________________________________ Q.No.1: What are the milks you usually keep in your shop? a) Visakha b) Vijaya c) Tirumala d) Jersey e) Heritage f) Others Q.No.2: Rate these milks in terms of volume of sales from 1 to 4 a) Visakha b) Vijaya c) Tirumala d) Jersey e) Heritage f) Others Q.No.3: Does packing play any role in promoting sales? a) Yes b) No Q.No.4: How do you sell the milk? a) At M.R.P b) Less than M.R.P c) More than M.R.P Q.No.5: How would you compare the services of Visakha and other brands on the following? Tick mark your preference a) Frequency of Visit of sales personnel Visakha ( ) Others ( ) b) Timely delivery Visakha ( ) Others ( ) c) Display Support Visakha ( ) Others ( ) d) Any other Visakha ( ) Others ( ) Q.No.6: Customer purchase milk because of: a) Price b) Quality c) Availability d) All of these Q.No.7: Behaviour of Delivery Van Driver a) Good b) Excellent c) Bad d) Average 90
  • 91. Q.No.8: Quality of Visakha Milk a) Good b) Excellent c) Bad d) Average Q.No.9: Product delivery time a) Good b) Bad Q.No.10: Customer‟s preference purchase a) Counter Purchase b) Door Delivery Q.No.11: Margin on sales a) Yes b) No Q.No.12: Payment Mode a) Monthly b) Weekly c) Daily 91
  • 92. BIBLIOGRAPHY BOOKS ► Marketing management- Kotler Philip ► Marketing research- Malhotra K. Naresh ► Marketing Management- Berman B and Evans J.R ► Consumer Preference- Louden D.L. & Bitta Delia ►Advertising-Environment and operations- Newman A.J. and Cullen P INTERNET WEB PAGE www.visakhadairy.com Organizedretail.co.in marketing seminar. In Literature review on visakhadairy marketing.co.in 92