1. A REPORT ON
A STUDY ON CUSTOMER LOYALTY OF GOKUL
MILK
By:
Mr. Amit Dumbre
Mr. Anand Mehta
Ms. Chaitali Ghosh
Mr. Rahul Chavan
Mr. Shailendra Kumar
Mr. Tabrez
MBA Program(Class of 2005-2007)
ICFAI National College
Nerul- Navi Mumbai
Gokul Milk
Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd.,

2. Table of Contents
1Objectives…………………………………..3
2Background………………………………...4
3Location…………………………………….5
4Chairman's Statement……………………..6
5Questionnaire………………………………7
6Market share……………………………….8
7Logistics…………………………………….9
8Products…………………………………….9
9Activity……………………………………...13
10Reasons for using milk brands…………...15
11Availability…………………………………15
12Reasons…………………………………….16
13Quantity……………………………………17
14Expectations……………………………….18
15SWOT Analysis…………………………….18
16Awards………………………………………20
17Conclusion………………………………….22

3. Objectives:
• To survey market demand and consumption of major
traditional dairy products of Gokul Milk, as also their process
know-how up gradation.
• To identify leading players in Surveyed Areas.
• To explore marketing opportunities and investment
prospects.
• Ensure an assured market for Milk producers
throughout the period, as well as good remunerative
prices.
• Analyze growing need for Milk & Milk products of the
consumers in Navi Mumbai & else where.
• Study the Co-operative structure of milk producers
at the village level.
• Imparting training for developing human resource at
rural level for effective leadership, Management skills
& improvement of services to rural Milk producers.

4. Background
The Kolhapur District Co-operative Milk producers Union Ltd.,
Kolhapur was established on 16th March, 1963 under the Co-
operative Act. It made a moderate beginning by collecting 700
liters of Milk per day from 22 societies. Most success stories have
a humble beginning & so have been with
Kolhapur Zilla Dudh Utpadak Sangh Mayadit.
On 16th March 1963 a spark stormed a fire to help the White
Revolution revolt heavily, when on this day came into being the
“Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd” with the
introduction of its popular brand of Gokul Milk & its wide range
of Dairy products in to the market.

5. Locations
Following series of images will help you locate Kolhapur,
where we are located. Simply click the hotspot areas on
the following images.
The Kolhapur Production Unit location

6. A word from Chairman,
Mr. Vishwasrao Patil...
Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd., Kolhapur, commonly
known as Gokul is a farmer's Dairy Co-operative organisation dealing with
more than 300,000 rural milk producers. This professionaly managed
organisation is working under able and dynamic leadership of its Chairman,
Shri Vishwasrao Patil. Its paid-up share Capital is of Rs.150 million and its
annual turnover is of Rs.3.5 billion.
Daily 460,000 liters of milk is handled by the organisation out of which about
80% share is of buffalo milk. Its main dairy of 750,000 lpd capacity with
powder plant of 30 M.T. per day capacity is situated at Kolhapur in
Maharashtra State. This processing facility is supplemented by a chain of
Chilling units located in its operational area.
On the merit of its excellent performance, the organisation has won Indian
National Productivity Council Awards for 11 times during last 11 years.
It is highly cautious in observing strict quality control norms in its various
operations. By virtue of this it could be proud recipient of ISO-9002
certification in the year 1998.
While striving hard to provide utmost satisfaction to its esteemed customers
it is also constantly endeavouring to improve the quality of life of its rural
producer members through execution of unique village development
programmes i.e. Gokul Gram Vikas Yojana.
In order to enhance Milk production, the Sangh provides on credit, quality
Cattle feed on a 'no profit no loss' basis, as well as free A.H. services &
nominally charged A.I. services to the Producer members.
All-round achievements of organisation is cumulative outcome of visionary
directions from its members of Board of Directors, Managing Director,
dedicated work put up by its able and devoted staff and last but most
important one is whole hearted involvement of its member-producers in
policies of organisation.
Vishwasrao Patil

7. Questionnaire for the customers:-
1.Which milk do you prefer?
2.What are the reasons for using that product?
3.For how long are you using that product?
4.How much quantity do you purchase?
5.What is your way of purchase?
6.Have you anytime switched from one company to
another?
7.Are you with this roduct? If yes or no why?
8.Which are the expected areas for improving?
9.If there is a price reduction in the compititors
product then will you have a shift?
10.Are you satisfied with the service provided by the
distributers?

8. Market Share
Gokul
18%
Others
82%
1According to our survey Market share of Gokul Milk is
18 % in surveyed area.
2Remaining 82% market share are captured by Amul,
Warana, Mahanada and others.

9. Logistics
Logistical competency is achieved by coordinating the
following:
1 Network Design
2 Information
3 Transportation
4 Inventory
5 Warehousing
Products
The Gokul Dudh Sangh Products are extremely popular in the Local &
Distant Markets. Branded as Gokul Products, they include Milk, Shrikhand,
Ghee, Table Butter, Skimmed Milk Powder & White Butter.
Moreover, Skimmed Milk Powder is IS-Part I & Part II Extra Grade,
which is on its way to capture the global market. In 1988, Liquid Milk
Marketing was launched in Mumbai by the Dudh Sangh. Sales initially were
16,000 Liters/Day. Today Standard, Cow & Tonned Milk together account
for more than 3.5 Lakh Liters/Day. In 1993 Gokul Milk was launched in
Pune where the sales are 20,000 Liters/Day. The present sale in local Milk
market is 70,000 Liters/Day.

10. Milk
Brand Gokul
Packing sizes 1 Liter & 500 m.l. Pouches
Standardized Milk
Fat 6.5 %
SNF 9.2 %
Rate per Liter Rs. 17/- Local
Rs. 18/- for Pune, Kokan & Belgaum
Rs. 22/- in Mumbai, Thane & Raigad District
Cow Milk
Fat 4.1 %
SNF 8.5 %
Rate Rs. 16/- Mumbai, Thane & Raigad District
Tonned Milk
Fat 3.1 %
SNF 8.5 %
Rate Rs. 13/- for Mumbai, Thane & Raigad District Rs. 12/- for Pune,
Kokan & Belgaum
(Toning can be defined as the addition of the constituted skim milk to whole buffalo
milk so to reduce the fat to 3%. Its nutritive value is almost similar to that of the fresh
cow's milk. It is a useful source of protein for special conditions such as
malnourishment, pregnancy etc.)
Shrikhand
Brand Gokul
Variety Badam Pista
Mango, Ilaichi, Nutmeg

11. Fat 7 %
Sugar40 %
Protein 9%
Packing Sizes Rates per K.g.
500 gm. Poly Bag Rs. 60/- (only for Ilaichi)
500 gm. Cup Rs. 73/-
250 gm. Cup Rs. 75/-
100 gm. Cup Rs. 85/-
Ghee
Brand Gokul
Packing sizes 1 K.g Pouch
500 gm. Pouch
Fat 99.7 %
Moisture 0.3 %
Rates Rs. 130/- per 1 K.g
Table Butter
Brand Gokul
Packing sizes 500 gm. Pack
100 gm. Pack
Fat 80.5 %
Moisture 16 %
Salt 2.5 %
Curd 1 %
Rates Rs. 115/- per K.g.
Rs. 120/- per per K.g.
Skimmed Milk Powder
Brand Gokul

12. Packing sizes 1 K.g. Poly Bag
500 gm. Poly Bag
100 gm. Poly Bag
25 Kg. in Bag
Fat 1.0 %
Moisture 3.5 %
Protein 35 %
Carbo-hydrates 51 %
Minerals 7 %
Rates
1 K.g Poly Bag, Rs. 90/- per K.g.
500 gm. Poly Bag, Rs. 90/- per K.g.
100 gm. Poly Bag, Rs. 100/- per K.g.
White Butter
Brand Gokul
Packing size 20 K.g. Box
Fat 83 %
Curd 1 %

13. Activities
Milk Procurement
The rated capacity of the Gokul Dairy is 6.5 Lakh Liters per day. Dudh
Sangh covers 2569 village level dairy co-operatives on 151 milk routes for
Milk procurement everyday.
Since then, the figure has shot up year after year & today in the year 2000,
the average procurement is 4.50 Lakh Liters per day. The ratio of Buffalo
Milk to Cow Milk capacity is 78% to 22% respectively. The Buffalo fat is
7.21% (SNF 9.4%) & the Cow fat is 4.2% (SNF 8.6%).
Preventive & Clinical Veterinary Services
A team of 47 trained veterinary graduates is recruited by the organization to
cater to the Preventive & Clinical Veterinary needs of the milk producers.
Each Veterinarian looks after an area of about 20 villages & provides mobile
services round the clock at their doorstep. The Field Veterinarian is provided
with a vehicle.
Breeding Services
In its operational area 243 Artificial Insemination centers have been
established by the Union. All the necessary inputs to these centers such as
LN2, semens, sheath, & even Cryogenic containers are made available by
the union. At present more than 700 villages are covered under these
services.
Fodder Development
A team of 5 Agriculture Graduates with the assistance of 5 supervisors are
currently working under Fodder development section of the Union. Under
this programme seeds of improved fodder varieties are distributed at 25%
subsidy cost. Moreover, Manual Chaff Cutter & Power driven Chaff Cutter are
distributed at 25% & 30% subsidy respectively also.
Cattle feed Plant
In 1982, Dudh Sangh started production of 100 MTPD Cattle feed under the
brand name Mahalaxmi. To meet the increasing demand for Cattle feed,
Dudh Sangh expanded the plant capacity upto 200 MTPD.
The production was later switched to by-pass feed to meet more demand at

14. the same production capacity. The sale of Mahalaxmi Cattle feed is
only meant for the village level Dairy Co-operatives that are affiliated to the
Dudh Sangh.
Gokul Gram Vikas Yojana
The Dudh sangh, while keeping a keen eye on the quality of its products,
also believes in the development of its Co-operatives. In March 1990 with
the help of NDDB a program known as Gokul Gram Vikas Yojana was
implemented.
This program covered Women’s Education, Member Education, Management
Training, Youth Group Discussion, Leadership Development Program &
Refresher Courses. Recently it has also included adoption of a Village for
development. Initially more than 250 Villages were bene-ficiaries of this
programme.
Reasons For Using Milk Brand
GOKUL AMUL MAHANAN WARANA OTHERS
DA
QUALITY
v v v v v
PRICE
High High Low Low Low
AVALIBILITY
Easy Hard Avg. Easy Easy
PACKAGING
Good Better Good Good Avg.
ADVERTIZEM
ENT Low High Low High Low

15. Availability
1Door - To – Door
1Retail Outlets
1Malls
1General Stores
Reasons
1Gokul to Others
 Highly conscious
 Comparatively costly
 Easy availability of competitor
products
 Less importance to umbrella
branding
1Others to Gokul
1. Comparatively high quality
2. Preference during occasions
3. Expanded market demand
4. 2 to the value of 1

16. Quantity
Milk consumption
12 12
Gokul
10
Warana
8
Amul
6
Mahananda
4 4 4 4 Others
2 2 2 2
0 0 0 0 0 0 0
<1 1 2 >=3
No. of Liters
1Based on the survey of 72 consumers this graph
shows the daily consumption of different milk
brands.
2It can be seen that only 12 people have gone for
Gokul milk and rest for others which is about 18:82
ratio.
3This graph conveys that there is a huge market for
Gokul to capture in Navi Mumbai area.

17. Expectations
1Carton Packaging
2Low fats
3Avoid adulteration
4Increase in retail outlets
5Price effective
6Maintaining high quality
SWOT Analysis
Strengths:
1.High quality
2.Heavy demand during occasion
3.Goodwill
4.Capture of rural market (Maharashtra)
Weaknesses:
1.Lack of marketing strategies
2.Less emphasis on R & D
3.Less focus on their other milk products

18. Opportunities:
1.To concentrate on competitors market
2.To increase the awareness of its by products
3.Match the international
Standards (in all aspects)
4.To motivate the distributors
5.Have some extra benefit opportunities for the
consumers
Threats:
1.Competitors aiming at international standards in
packaging and quality
2.The adulteration in the consumers market
3.People being diet conscious
4.Easy availability of competitors products

19. Awards
Gokul Dudh Sangh, thanks to its high production standards &
exemplary performance, has won the National Productivity
Council Award 11 times since year 1988-89.
Under guidance & assistance from NDDB & FAO, Gokul
implemented a Quality Management System. The System
contributed towards improving quality of the plant & its output
not only up to the National standards but well enough to compete
at International levels.
Here are some details of the awards that we have won over past
years..
The image on the left denotes 1st Prize for National Productivity Council Award.
The 1st Prize was won for the following years
• 89-90
• 91-92
• and 93-94 (won for both Dairy & Cattle feed categories)
The image on the left denotes 2nd Prize for National Productivity Council Award.
The 2nd Prize was won for the following years
• 92-93 (won for both Dairy & Cattle feed categories)
• 94-95 (won for both Dairy & Cattle feed categories)
• and 96-97
The image on the left denotes the Merit Certificate award, which was won for the
following years
• 93-94
• 94-95

20. Conclusion
Based on the survey conducted conclusion
can be stated as
1Inspite of maintaining high quality
Gokul has not won 100% customer
loyalty.
2Gokul Customers may shift to
competitors product if the quality
offered by them is superior.
3The customers also tend to shift on the
basis of easy availability of the
competitors product.
4Gokul has a potential of capturing the
maximum market if they have a strong
marketing strategy.