The document discusses the dairy industry profile of India and Kalpataru dairy company. It provides background on the Indian dairy industry, including its growth, production levels, leading states, organized sector expansion, and cooperative structure. It also includes a profile of Kalpataru dairy, noting its founding, location, markets served, and ambitions for growth. The document contains detailed information on the Indian dairy industry, organized sector, cooperative movement, leading states, and profiles of Kalpataru dairy company.
A project report on demand estimate of milk for institutional sales, in dharwar
1. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
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DETAILED TABLE OF CONTENTS
SL.NO. PARTICULARS
1. PART-I
EXECUTIVE SUMMARY
2. PART-II
INTRODUCTION TO THE COMPANY AND INDUSTRY
PROFILE OF COMPANY
INDIAN DAIRY INDUSTRY
THE MILK AND MILK PRODUCTS MARKET
THE ORGANISED MILK MARKET IN INDIA
THE SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY
3. PART-III
LITERATURE SURVEY
4. PART-IV
DESIGN OF THE STUDY
NEED FOR THE STUDY
RESEARCH OF THE OBJECTIVES
RESEARCH PROCESS
SCOPE OF THE STUDY
LIMITATIONS OF THE STUDY
5. PART-V
ANALYSIS AND INTERPRETATION OF DATA
6. PART-VI
FINDINGS
7. PART-VII
SUGGESTIONS
8. PART-VIII
CONCLUSION
BIBLIOGRAPHY
APPENDIXES
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PART-II
INTRODUCTION TO THE COPMANY
INDUSTRY PROFILE
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COMPANY PROFILE:
Kalpataru dairy has been started in the year 1998 and in the year 2004 it has been
purchased by the young entrepreneur of Dharwar, Mr. Vijay Mane. Now kalpataru dairy
is running under the keen observations of Mr. Vijay Mane. It is located near
khalaghatagi city. It is operating in Dharwar and Dharwar regions. It is also one of
largest milk producers in the market. The company is very enthusiastic and more
ambitioned to cater and carve the new markets in the North Karnataka. The company has
good market share in the Dharwar and dharwar regions. They are achieving higher
market share in that region by practicing good marketing strategies.
Kalpataru dairy has a good number of satisfied customers in the market. The company is
using many new product development strategies to satisfy the customers. Its one among
the many dairies which are producing good quality standard toned milk. It has many
institutional and domestic customers for their milk. The company has widened its market
share about 5% this year. They are now looking for the Belguam market as an
institutional segment.
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INDIAN DAIRY INDUSTRY PROFILE
INTRODUCTION
India's high-value, high-volume market for traditional dairy products and delicacies is all
set to boom further under the technology of mass production. This market is the largest
in value after liquid milk and is estimated at US $3 billion in India.
More and more dairy plants in the public, cooperative and private sectors in India are
going in for the manufacture of traditional milk products. This trend will undoubtedly
give a further stimulus to the milk consumption in the country and ensure a better price
to primary milk producers. Simultaneously, it will also help to productively utilize
India's growing milk surplus.
Milk production in India increased from 17 million tons in 1950-51 to 89.6 million tons
in 2004-05. India has rapidly positioned itself as the world's largest producer of milk.
Producing milk in rural areas through smallholder producer cooperatives and moving
industrially-processed milk from these smallholder sources to urban demand centers
became the cornerstone of government dairy development policy. This policy initiative
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gave a boost to dairy development and initiated the process of establishing the much-
needed linkages between rural producers and urban consumers.
The performance of the Indian dairy sector during the past three decades has been truly
impressive. Milk production grew at an average annual rate of 4.6 percent during the
1970s, 5.7 percent during the 1980s, and 4.2 percent during the 1990s.
Despite its being the largest milk producer in the world, India's per capita availability of
milk is one of the lowest in the world, although it is high by developing country
standards. The per capita availability of milk expanded substantially during the 1980s
and 1990s and reached about 226 grams per day in 2003-04 the per capita consumption
of milk and milk products in India is among the highest in Asia, but it is still growing. It
is still below the world average of 285 grams per day, and also the minimum nutritional
requirement of 280 grams per day as recommended by the Indian Council of Medical
Research (ICMR).
Several factors have contributed to increased milk production. First, milk and dairy
products have cultural significance in the Indian diet. A large portion of the population is
lacto-vegetarian, so milk and dairy products are an important source of protein in the
diet. The demand for milk and dairy products is income-responsive, and growth in per
capita income is expected to increase demand for milk and milk products.
Despite the fact that dairy production in India is widespread throughout the country and
overwhelmingly carried out by small-scale producers, there are still large interregional
and interstate variations in milk production. Roughly two-thirds of national milk
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production comes from the states of Uttar Pradesh, Punjab, Rajasthan, Madhya Pradesh,
Maharashtra, Gujarat, Andhra Pradesh, and Haryana. However, there have been some
shifts in milk production shares of different states. In 2001-02, Uttar Pradesh was the
largest milk producer in the country, with about 16.5 million tons of milk, followed by
Punjab (8.4 million tons), Rajasthan (6.3 million tons), Madhya Pradesh (6.1 million
tons), Maharashtra (6 million tons), and Gujarat (5.6 million tons). The eastern region is
lagging behind in terms of dairy development, and imports milk from surplus areas in the
West and North.
INDIAN DAIRY INDUSTRY — A PROFILE
— The annual milk production is presently 92 million tonnes, contributing around Rs.
1000 billions to the GDP.
— Provides assured and remunerative employment round-the-year to 60 millions
families.
— The dairy animals make a substantial contribution to household food security by
providing income, quality food, energy, fertilizer and assets in over majority of the rural
households in India.
— The Animal Husbandry is the single largest contributor under the agriculture sector
which provides a remunerative employment round the year at a very small investment.
The dairy animals make a substantial contribution to household food security by
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providing income, quality food, energy, fertilizer and assets in over majority of the rural
households in India.
These livestock keepers are constrained by poor animal health and veterinary
services, lack of feed and fodder, water, milk handling, chilling, etc. Besides, there has
been lack of infrastructure facilities such as good roads and access to markets, etc. The
livestock keepers also lack access to advanced technologies as well as proper
institutional support system. The result is that both the production and productivity
remain well below its potentials. Thus the losses and wastages continue to remain high.
Adapted breeds and local feed resources although available, but need proven technology
supports in its preservation and processing. Such support would substantially improve
production and productivity, which would result in higher income for the livestock
keepers.
One of the problems faced by India is unemployment, despite the rapid growth
rate. The problem is more acute in rural educated and marginally educated youths, who
have no alternative but to migrate to urban areas. Due to automation in various core
sectors, the employment opportunities have dwindled considerably whereas the service
sector has its own limitations, especially the high investment cost per job created. In this
context, the dairy industry offers a plausible opportunity of creation of self-employment
with minimum investment. There is a scope for doubling the present milk production,
which can be achieved with marginal investment, such a step would not only enhance
milk production and productivity, but also would create millions of additional jobs.
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Dairying is, in fact, a supplementary activity of the marginal farmers and the
landless laborers. It is therefore suggested that dairy and such other animal farming be
included within the legal framework of ‘agriculture and agriculture products’. This
would enable the marginal farmers and the landless agriculture laborers to benefit from
the various government incentives.
Milk is no more a luxury, but essential nutritional requirements of human
being. The children largely depend on milk for nutrition. Higher milk production
therefore will also increase the health status of the farmers and people at large. Due to
several inherent reasons, the cost of milk production is high. One of the important
reasons is low animal productivity. Because of high cost, the milk and milk products are
not affordable to poor strata of the society. Milk is a perishable commodity. Hence, its
conversion to products, such as, milk powder, butter and cheese, etc. is necessary.
Considering these factors, it is reasonable that at par with agriculture produce, the milk
products be also exempted from any excise duty, sales tax and such other taxes. This
gesture of the government would go a long way in accelerating the growth of the Indian
dairy industry from present annual rate of around 4.5 % to more than 9%.
The conversion of excess milk to milk-products is a necessity. The basic principle here is
evaporation of water which changes its physical form only, whereas there is no change
whatsoever in its chemical composition. One of the reasons of higher cost of milk and
milk products is the cost of packaging. To safeguard the quality and safety for human
consumption, packaging of milk and milk product is necessary. The milk product
manufacturing therefore should be construed as ‘processing milk for preservation’ and it
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should be exempted from all the taxes and duties like excise, central sales tax and octroi
etc.
To enhance milk production during the next five years as well as to address the issues
referred in the foregoing sentences, there is an imperative need of policy support from
the government on the following core areas:
- Clean and quality milk production, processing and packaging
- Boost the exports of milk and milk products
- Enhance milk production and milch animal productivity
Indian Dairy: the organized sector is expanding Daily
India’s modern dairy sector has expanded rapidly. From an insignificant 200,000 liters
per day (lpd) of milk being processed in 1951, the organized sector is presently handling
some 20 million lpd in over 400 dairy plants. Already, one of the world’s largest liquid
milk plants is located in Delhi and handling over 800,000 liters of milk per day (Mother
Dairy, Delhi). India's first automated dairy ‘Mother Dairy ‘ has been established at
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Gandhi agar near Ahmedabad, Gujarat, in Western India and its capacity is capacity is 1
million lpd. It is owned by India’s biggest dairy cooperative group, in Anand, with an
annual turnover in excess of Rs 23 billion (US $500 million). Amul-III with its satellite
dairies, with total installed capacity of 1.5 million lpd has also been commissioned.
India's first vertical dairy (capacity: 400,000 lpd), owned by the Pradeshik Cooperative
Dairy Federation (PCDF) has been commissioned at Noida, outside Delhi
Dairy is a place where handling of milk and milk products is done and technology refers
to the application of scientific knowledge for practical purposes.
In India, dairying has been practiced as a rural cottage industry since the remote past.
Semi-commercial dairying started with the establishment of military dairy farms and co-
operative milk unions throughout the country towards the end of the nineteenth century.
The Indian Dairy Industry has made rapid progress since Independence. A large number
of modern milk plants and product factories have since been established. These
organized dairies have been successfully engaged in the routine commercial production
of pasteurized bottled milk and various Western and Indian dairy products. With modern
knowledge of the protection of milk during transportation, it became possible to locate
dairies where land was less expensive and crops could be grown more economically.
The Winning Edge
Three aspects of India’s modern dairy sector are particularly noteworthy.
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A vast market for dairy products is being built as disposable incomes increase. Its
focus is the increasingly affluent middle class, numbering some 300 million — almost
the population of the United States — which is confined to well-defined urban pockets
and is easily accessible. Milk occupies pride of place as the most coveted food in the
Indian diet, after wheat and rice. Milk-based sweets are a culinary delight in all homes
throughout the year.
The milk production is pre-dominantly rooted in the cooperative system focus is on
the small rural farmer having one or two cow/buffaloes, yielding 2-3 liters of milk per
animal. This system is the basis of operation flood, the world’s largest dairy
development program.
The preferred dairy animal is the buffalo. Some 65 per cent of the world buffalo milk
is produced in India. It has 30 per cent higher total solids compared to cow milk
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DAIRY INDUSTRY PROFILE
• Human population: 953 million (70 million dairy farmers)
• Milk production: 74.3 million tonnes (203.5 million lpd)
• Average annual growth rate (1995-2000): 5.6%
• Per capita milk availability: 214 g/day or 78 kg/year
• Milch animals: 57 million cows; 39 million buffaloes:
• Milk yield per breedable bovine in-milk: 1,250 kg
• Cattle feed production (organized sector): 1.5 million tonnes
• Turnover of veterinary pharmaceuticals: Rs. 550 crores
• Dairy plants throughput: 20 mlpd
• Throughput as percentage of total milk output: 10
The Dairy Movement in India
The dairy cooperative movement in India continues to be unparalleled in the world in
terms of its scope and scale. Launched in the Kaira district of Gujarat during India's
independence, farmers were encouraged to form a cooperative to counter exploitatively
low prices offered for their milk by the monopoly milk supplier, Polson Dairy. The Kaira
cooperative launched its operations in 1946 and operated at two levels. The primary
village dairy cooperative society of milk producers collaborated with others in the
district to form the milk producers union, which procured and processed the milk. The
union processed the milk that was procured from the village dairy cooperatives at its
processing plants. In addition to collecting surplus milk, the Kaira union assisted
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members in expanding production. The father of the Indian dairy movement was
Varghese Kurien. A mechanical engineer from the Michigan State University, US,
Kurien helped India to become the largest producer of milk in the world.
As the number of district unions increased, the Kaira cooperative was transformed
into the Gujarat Milk Marketing Federation Ltd (GCMMF) under the chairmanship of
Kurien. GCMMF coordinated the operations of the union and marketed milk and milk
products. As the operations were based in Anand, Gujarat, this came to be known as the
Anand model. This model was replicated across India. In 1965, NDDB was formed
under the chairmanship of Kurien and was mandated with the task of building
cooperative dairies across the country. Operation Flood was launched in 1970, which
sought to establish dairy cooperatives across India, get rid of middlemen, remove
seasonal price variations and make it economically viable for farmers to undertake
production and distribution of milk. Operation Flood achieved phenomenal success:
trebling India's annual milk production from 21 million tonnes in 1968 to 89 million
tonnes in 2004. Nearly 9 million small producers in 74,000 villages began supplying
hygienic and fair priced milk to 300 million consumers and earning revenues of Rs 25
billion in the process.
Of the Rs 2 billion invested by World Bank in the second phase of Operation
Flood, the net return to the rural economy has been in the region of Rs 240 billion. per
year over a period of ten years or a total of Rs 2.4 trillion in all. No other development
programme in the world has achieved such success. Several countries like Sri Lanka,
Bangladesh, Nepal, the Philippines, Malaysia and some African countries have decided
to implement similar projects. The third phase of Operation Flood, implemented during
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1985-96 aimed at consolidating the achievements of the first two phases. Infrastructure
was strengthened, production enhanced and animal healthcare and nutrition improved.
The Operation Flood III programme was funded by a World Bank credit of US $365
million and food aid worth Rs 2226 million. By May 1995, Rs 15.78 billion had been
invested in the three phases of Operation Flood. By the time the third phase came to an
end, milk processing capacity had grown to 17.2 million liters per day. Chilling capacity
of 6.9 million litres per day had been added and milk powder production capacity of 839
tonnes per day had been set up. By 1999, average milk procurement by the cooperatives
had grown to 10.2 million liters per day, of which 9.4 million liters was marketed as
liquid milk. The remainder was converted into milk powder, butter, cheese, ghee and
other traditional milk products.
DDB (National Dairy Development Board) has been focusing on intensive R&D
activities in animal husbandry through the late 1990s. It has set up an embryo transfer
lab at Sabarmati Ashram Gaushala in Ahmedabad. NDDB has also been working on
improving nutrition quality of the normal cattle feed. NDDB has made it possible to
transport milk over long distances by using over 140 insulated rail milk tankers, each
with a capacity of 40,000 liters. This has enabled the National Milk Grid to supply milk
to milk-deficient regions in the country.
In the year 2000, NDDB (National Dairy Development Board) announced a ten-year
plan called Perspective 2010. It is aimed at strengthening the dairy cooperative
movement.
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The major objectives include:
• increasing milk procurement by cooperatives from 5.75 mt in 2000 to 17.8 mt in
2010;
• increasing the number of dairy cooperative societies from 84,289 in 2000 to
129,480 in 2010;
• increasing the membership in dairy cooperatives from 10.62 million in 2000 to
15.62 million in 2010; and
• Increasing the amount of milk to be marketed from 4.7 mt in 2000 to 14 mt in
2010.
Specific features of dairy in relation to marketing in developing
countries
The dairy industry in the developing countries has a number of specific features which
distinguish it from the other sectors of agriculture and have particular implications for
marketing. First, milk consists of over 85% water, and produced daily. Consequently,
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high costs of transportation are incurred per unit of output marketed. Also, milk being
highly perishable, it needs to be used within a short period or processed and
transformed into a more stable, longer-storable form. The quality of milk depends on
farm management practices, and milk is potentially subject to adulteration, so strict and
comprehensive quality regulations may be necessary when marketing involves more
than direct delivery by producers to consumers.
Second, the vast majority of the dairy farmers are small-scale producers, who
produce milk as a source of regular cash income. Dairy production is a labor-intensive
enterprise, and dairy marketing activities often provide substantial employment.
However, because of asset fixity (high percentage of fixed costs), dairy enterprises often
respond to market changes and incentives in a limited and gradual way.
Third, milk can be used to make a wide range of high quality palatable and
nutritious products, which often imply substantial value added over the cost of the raw
material. When production and consumption points are far apart and demand increase
rapidly, processing of dairy products becomes very important.
Fourth, as a consequence of the above features of milk and the market
vulnerability of its producers, cooperatives may assume a strong position in milk
processing. A survey by the International Dairy Federation in 1984 revealed that in 21
developed countries together accounting for 55% of the world's milk supply, producer
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cooperatives marketed 86% of total sales of milk from farm to the first handler. In some
of these countries, cooperatives also handled 80-90% of the total processing activity. It
may be noted that the history of development of dairy cooperatives in these countries are
not always similar. However, in most developing countries, dairy producer cooperatives
and cooperative processing are either non-existent or very weak. The need for
cooperatives in these countries is driven by the need to capture some economies of scale
in transportation and processing where numerous small producers are scattered far away
from the consumption centres. In many countries, this gap has been filled by
establishment of parastatal dairy enterprises for collection and processing of milk to
promote domestic dairy production. In most cases, these enterprises ended up processing
subsidized imported dairy products, neglecting the rural dairy sector. The monopolistic
character of these enterprises often led to inefficiency thus they failed to serve the
interests of domestic producers and consumers.
Weaknesses in physical and marketing links between rural producers and urban
processors and consumers are among the major constraints to dairy development in the
developing countries. It is important to be aware of and understand how such constraints
can be addressed in order to devise mechanisms that can transfer growing urban demand
into increased livestock production. Inadequate infrastructure and inefficient marketing
may lead to increased transactions costs and/or market failure. By better understanding
these costs and identifying the ways of reducing their impact, policy prescriptions can be
made to promote economic development by fostering production and trade.
CHARACTERIZING DAIRY MARKETING SYSTEMS
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A dairy marketing system is characterized by:
• The range of dairy products marketed;
• The size, structure and organization of the enterprises participating in the market
for each product and in the entire marketing chain;
• The conduct and performance of the marketing system; and
• The existing marketing policies, institutions and organizations, and the physical
environment within which marketing takes place.
Functional parameters: These are key descriptors of how the system operates.
Examples include dairy products marketed, marketing agents, marketing outlets, prices
at each marketing node, modes of transporting marketed products, etc. Functional
parameters combine characteristics related to market structure and conduct.
Performance indicators: These parameters permit assessment of the performance of the
system. Examples are the percentage of total dairy products marketed, the ratio of
standardized to non-standardized products marketed; the ratio of marketing to total costs;
the ratio of farm gate to retail price. The importance of identifying performance
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indicators is that they form the baseline against which any changes in the efficiency or
performance of the system can be measured.
Formal market includes firms and organizations whose daily operations are guided by
statutory rules and procedures, e.g. a parastatal dairy processing plant or a company
engaged in dairy marketing.
Informal market includes firms whose daily operations are not guided by statutory
rules and procedures except for any trade license, e.g. dairy producers and itinerant
traders.
A marketing chain defines the flow of commodities from producers to consumers that
brings into place economic agents who perform complementary functions with the aim
of satisfying both producers and consumers.
A marketing node is defined as any point in the marketing chain where an exchange
and/or transformation of a dairy product take place. A marketing chain may link both
formal and informal market agents.
The Liquid Milk & Milk Products Market
Out of a total production of 88 mt of milk, 46per cent is consumed as liquid
milk. Less than 30 per cent of milk production – i.e. 26.4 mt – is packaged. Currently
barely 778 out of 3,700 cities and towns are served by the milk distribution network,
dispensing hygienically packed wholesome, quality pasteurized milk. According to one
estimate, the packed milk segment would double in the next five years.
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The effective milk market is largely confined to urban areas, inhabited by over
25 per cent of the country's population. In urban India, an estimated 50 per cent of the
total milk produced is consumed by a population of roughly about 350 million. The
expected rise in urban population would be a boon to Indian dairying.
Of the three A's of marketing - availability, acceptability and affordability, the dairy
sector is at an advantage since Indians are a milk loving people. However what continues
to be a challenge is the affordability factor. Volume sales could dramatically increase if
small packs of 250 ml or less is made available. Sales of milk powders in mini-sachets,
for two cups of tea or coffee, could also help in increasing volumes.
Flavored Milk is increasingly becoming the toast of the milk market. The overall market
for flavored milk in India is estimated to have grown 27 per cent in value terms in 2004-
05. Milk-based drinks are the flavor of the season as consumers seek healthy lifestyles.
Nestlé’s Fruit and Milk and Amrit Foods’ Gagan are the two brands that have a
significant presence in this segment
Ultra Heat Treatment (UHT) milk or long-shelf-life milk sales are estimated to be in
the region of 70 million liters and the segment is growing at a healthy pace of 20-25 per
cent per year.
Packaged curd and curd products – such as lassi, buttermilk, chhas, set dahi, mishti doi,
etc. – are new products and are witnessing a rapid pace of growth. In terms of volumes
this just comprises 5 per cent of dairy products, but they are growing at 10 per cent per
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annum. Flavored yoghurt, which is popular in the West, however, has not been
successful in India.
Traditional products, such as paneer, mithai, khoa and khoa-based sweets, which are
available in the unorganized market, is a huge segment. Apart from Amul which has
launched paneer and its Mithaee brand which offers traditional Indian sweets, the
organised sector has not tapped into the potential that this sub-category offers.
Some facts about organized Milk market in India:
Beginning in organized milk handling was made in India with the establishment of
Military Dairy Farms.
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• Handling of milk in Co-operative Milk Unions established all over the country on
a small scale in the early stages.
• Long distance refrigerated rail-transport of milk from Anand to Bombay since
1945
• Pasteurization and bottling of milk on a large scale for organized distribution was
started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961),
Madras (1963) etc.
• Establishment of Milk Plants under the Five-Year Plans for Dairy Development
all over India. These were taken up with the dual object of increasing the national
level of milk consumption and ensuing better returns to the primary milk
producer. Their main aim was to produce more, better and cheaper milk.
Milk Production data
1950 – 17 million tonnes
1996 – 70.8 million tonnes
1997 – 74.3 mT
(Projected) 2020 – 240 mT
Expected to reach- 220 to 250 mT – 2020
India contributes to world milk production rise from 12-15 % & it will increase up to 30-
35% (year 2020)
SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY
Strengths:
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• Demand profile: Absolutely optimistic.
• Margins: Quite reasonable, both on packed and non packed liquid milk.
• Flexibility of product mix: tremendous opportunities are present. With balancing
equipment, we can keep on adding to your product line.
• Availability of raw material: Abundant. Presently, more than 80 per cent of milk
produced is flowing into the unorganized sector, which requires proper
channelization.
• Technical manpower: Professionally-trained, technical human resource pool,
built over last 30 years.
Weaknesses:
• Perishability: Pasteurization has overcome this weakness partially. Surely, many
new processes will follow to improve milk quality and extend its shelf life.
• Lack of control over yield: Theoretically, there is little control over milk yield.
However, increased awareness of developments like embryo transplant, artificial
insemination and properly managed animal husbandry practices, coupled with
higher income to rural milk producers should automatically lead to improvement
in milk yields.
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• Logistics of procurement: Woes of bad roads and inadequate transportation
facility make milk procurement problematic. But with the overall economic
improvement in India, these problems would also get solved.
• Problematic distribution: Yes, all is not well with distribution. But then if ice
creams can be sold virtually at every nook and corner, why can’t we sell other
dairy products too? Moreover, it is only a matter of time before we see the
emergence of a cold chain linking the producer to the refrigerator at the
consumer’s home!
• Competition: With so many newcomers entering this industry, competition is
becoming tougher day by day. But then competition has to be faced as a ground
reality. The market is large enough for many to carve out their niche.
Opportunities:
"Failure is never final, and success never ending”. If dairy entrepreneurs are looking for
opportunities in India, the following areas must be tapped:
• Value addition: There is a phenomenal scope for innovations in product
development, packaging and presentation. Given below are potential areas of
value addition:
o Steps should be taken to introduce value-added products like shrikhand,
ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead
to a greater presence and flexibility in the market place along with
opportunities in the field of brand building.
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o Addition of cultured products like yoghurt and cheese lend further
strength - both in terms of utilization of resources and presence in the
market place.
o A lateral view opens up opportunities in milk proteins through casein, and
other dietary proteins, further opening up export management.
o Yet another aspect can be the addition of infant foods, geriatric foods and
nutritional
Export potential: Efforts to exploit export potential are already on. Amul is exporting
to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT
treaty, opportunities will increase tremendously for the export of agri-products in
general and dairy products in particular.
Threats:
Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of
place in the industry. Organized dissemination of information about the harm that they
are doing to producers and consumers should see a steady decline in their importance.
The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far
outweigh ‘weaknesses’ and ‘threats’. Strengths and opportunities are fundamental and
weaknesses and threats are transitory. Any investment idea can do well only when you
have three essential ingredients: entrepreneurship (the ability to take risks), innovation
approach (in product lines and marketing) and values (of quality/ethics).
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The Indian dairy industry has been attracting a large number of entrepreneurs. Their
success in dairying depends on factors such as an efficient yet economical procurement
network, hygienic and cost-effective processing facilities and innovativeness in the
market place. All that needs to be done is: to innovate, convert products into
commercially exploitable ideas. All the time keep reminding yourself: Benjamin
Franklin discovered electricity, but it was the man who invented the meter that really
made the money.
PART III-LITERATURE SURVEY
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INSTITUTIONAL SALES
The institutional sales are defined as the process of selling the good and services to the
customers who will make purchases in bulk quantity. Now in India the rate of
consumerism is increasing predominantly these days. The customers are enjoying the
purchase experience in the retail outlets. The increased number of consumerism has the
strong supporting factors like the augmentation of the disposable income.
These increased transactions and higher disposable incomes in Indian markets bring
down the opportunities to expand the existing businesses and start a new venture. An
institutional sale supports the 80:20 rules of the marketing or sales. These 20%
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institutional customers purchases 80%of the sales and 80% of the customers’ purchases
20%of the total production.
Institutional sales provides very favorable margin to the companies in terms of cash sales
and the profit margin is also very high as compared to the daily merchandised factors.
Indian business scenario is changing every day. This change has many reasons in it, they
all are not happened suddenly, but, all these are the results of LPG policy of 1991. At
present every Indian per capital income has increased and the disposable income also
raisened these years. These all lead them to have the paramount experience of
purchasing process.
These all factors gives raise to the more business opportunities generally and
institutional sales particularly. Institutional sales more surely influenced by the market
structure and demand forecasting data of that industry. It has many determining factors
like economical, political, legal, and international factors play a vital role in the
institutional sales. For the Indian dairy industry these institutional sales are not fixed.
They vary according to the changing demands and other seasonal variations. India is one
of hot region in this world. In summers the milk consumption rate as the its end product
like cold milk, flavored milk, ice creams, curd, butter milk, etc is very high. So the
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summer season blossoms the high sales for this milk industry. Hence the milk industry
has very changing business for the institutional sales.
The dairy industry is growing in India and all the Indians are lacto-vegetarian in nature.
Indians want to consume more milk content food in their eating menu. 60% of the
produced milk in India is consumed by the urban people and this shows that the urban
India is growing fastly. The fast urbanization leads to get more opportunities for these
institutional purchasers of milk.
These institutional sales are done on the discount rates. The purchasers get a bit high
amount of discount in their total purchase. This leads them to get more profit in their
manufacturing of their final product and selling. The institutional sales are based on the
strong and good relationships with your customers. The customer relationship
management (CRM) plays a very vital role in the institutional sales. To boost these
institutional sales the manufacturers have to come up with many new marketing
strategies
in their product promotions and as well a with their product and pricing strategies. The
distribution channel also has to be made so lively. The distribution channel has to be o
strong and should follow the intensive distribution strategy
For this dairy industry the distribution channel are its local operating dealers and other
retailers of the market. The dealers are given more commission to achieve the high sales
during a period of time. These dealers are very business minded and always push the
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product into the market which is fetching more commission to them. So its very
important to see through this end channels of marketing.
Philip kotler suggests that these institutional markets are very volatile in nature. In this
market the buzz word “BRAND” plays a very important role. Many customers make the
purchase decision on the basis of their preferred and most trusted brand. To boost the
institutional sales the companies have to practice the strong brand building strategy in
the customer mind sets. They have to make intensive advertisement campaigns to place
their product in the customer mind. In institutional sales the quality is main element than
the price. The quality has to be maintained as per the prescribed details.
DEMAND ANALYSIS.
The sale of a product depends upon the demand of that product. but the demand of that
product depends upon a number of varied factors. These factors are such as price, buyers
income, price of substitute or competing products, advertising and sales promotion,
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population, availability of credit, changes in buyers tastes, needs and preferences,
geographical location, expected future trends in prices etc. there are certain fundamental
factors which determine the demand for a product. These factors are price of a product,
buyer’s income, prices of related goods and advertising and sales promotion.
These factors have high influence on the sales and hence they constitute the controlling
variables commonly used in the study of demand. The importance of each of these four
factors varies from product to product and for the same product from time to time.
What is demand?
In the ordinary language the word demand means desire. But mere desire does not
constitute demand in the economic sense. Because the person with low income may
desire to have a MERCEDEZ BENZ car but this doesn’t constitute a demand for a car
because that person doesn’t have adequate money to purchase the car. In other words he
does not have the ability to purchase the car.
In other words the demand is defined as the human want that are backed by his
purchasing power.
Demand implies three conditions;
a) desire for a commodity or a service
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b) willingness to pay the price for it, and
c) ability to pay price for it.
Thus demand for any commodity as a desire for that commodity backed up by
willingness and ability to pay. Further demand has no meaning without reference to
price.
LAW OF DEMAND
This law states the relation between the price of commodity and its quantity demanded in
the market. the law is” other things remaining equal, the amount of a commodity
demanded increases every fall in its price and diminishes with every rise in its
price”
Thus the quantity of a commodity demanded varies inversely with its price.
INCOME EFFECT OF DEMAND
A fall in the price of a commodity results in an increase in the real income of the
consumer. Because with the same amount of money to be spent on commodity he can
now purchase more of it when its price falls. On the contrary a rise in the price of a
commodity results in decrease in the real income of the consumer. Because with the
same amount of money to be spent on the commodity, he will now purchase less
quantity of it when its prices rises.
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Substitution effect of a demand
A fall in the price of commodity leads to an increase in the demand for it, while the price
of its substitutions remains constant. On the contrary, a raise in the price of a commodity
will make it costlier and lead to a decrease in the demand for it, while prices of its
substitutes remain constant. This is the case of contraction of demand are attributed to
substitution effect. Normally the substitution effect is stronger than the income effect.
Because consumers always substitute the cheaper commodity for the costlier commodity.
Income effect has positive only in case of superior goods because if their prices fall the
consumers real income will increases and they will , there fore buy more of them.
But the income effect is negative in case of inferior goods because if their prices fall the
consumers real income increases and they purchase less of such inferior goods. But the
substitution effect on the other hand is always positive because consumers always
substitute relatively cheaper goods for relatively costlier goods. Thus in the case of
superior goods the income effect and substitution effect are both positive. But incase of
inferior goods the income effect is negative while the substitution effect is positive
FACTORS GOVERNING DEMAND
The law of demand states that demand changes whenever prices changes. But this
change in demand which is result of a change in price is known as extension or
contraction of demand. But demand may also changes due to changes in factors other
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than price. This change due to changes in factors other than the price. The factors which
bring about changes in demand price remaining the same.
Changes in population:
An increase in the size of population naturally leads to an increase in the demand for
various goods and services. Conversely, a decrease in size of the population leads to a
decrease in demand for goods and services.
Changes in climatic conditions:
Demand for certain goods are affected by changes in climatic conditions.
Changes in fashion:
Changes in fashion bring about changes in demand.
Changes in tastes, habits etc:
If tastes, habits and customs to which people are accustomed change, demand for goods
and services also changes.
Changes in quantity of money in circulation:
If the quantity of money in circulation increases, people will be having more purchasing
power and hence, demand for goods ad services increases. Conversely, if the quantity of
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money in circulation decreases, people will be having less purchase power and therefore
demand for goods and services also decreases.
Changes in the distribution of income and wealth:
If the income or wealth is distributed more evenly among the various sections of the
community, the purchasing power of majority of the people increases and therefore,
demands for goods and services increases.
Availability of substitutes:
If the substitutes are available adequate then demand for commodity falls when its
substitutes become cheap. If there are no substitutes for a commodity then demand for it
does not fall even though their price increases.
Advertisement and salesmanship:
Clever and persistent advertisement and efficient salesmanship create new demand and
increase the existing demand.
Complementary goods:
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These goods are the goods which are demanded together. A change in the demand for
one leads to a similar change in the demand for others.
Technical progress:
The introduction of new products in the market as a result of invention and discoveries
also affects the demand. Demand for old things will decrease while demand for new ones
increase.
COMPANY DEMAND
Company demand is the company’s share of market demand.
This can be expressed as a formula:
Company Demand = Market Demand v Company’s Market Share
A company’s share of market demand depends on how its products, services, prices,
brands and so on are perceived relative to the competitors. All other things being equal,
the company’s market share will depend on the size and effectiveness of its marketing
spending relative to competitors.
Sales Forecast
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The Sales Forecast is the expected level of company sales based on a chosen marketing
plan and an assumed marketing environment. Sales Forecast is not necessarily the same
as a “sales target” or a “sales budget”.
A sales target (or goal) is set for the sales force as a way of defining and encouraging
sales effort. Sales targets are often set some way higher than estimated sales to “stretch”
the efforts of the sales force.
A sales budget is a more conservative estimate of the expected volume of sales. It is
primarily used for making current purchasing, production and cash-flow decisions. Sales
budgets need to take into account the risks involved in sales forecasting. They are,
therefore, generally set lower than the sales forecast.
OBTAINING INFORMATION ON MARKET DEMAND
As a starting point for estimating market demand, a company needs to know the actual
industry sales taking place in the market. This involves identifying its competitors and
estimating their sales.
An industry trade association will often collect and publish (sometime only to members)
total industry sales, although rarely listing individual company sales separately. By using
this information, each company can evaluate its performance against the whole market.
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This is an important piece of analysis. However, it finds out that overall industry sales
are rising by 15% per year. This must mean that Company is losing market share – its
relative standing in the industry.
Another way to estimate sales is to buy reports from a marketing research firm. These
are usually good sources of information for consumer markets – where retail sales can be
tracked in great detail at the point of sale. Such sources are less useful in industrial
markets which usually rely on distributors.
Estimating Future Demand
Current Company Demand = Current Market Demand x Current Market Share
Very few products or services lend themselves to easy forecasting. These tend to involve
a product whose absolute level or trend of sales is fairly constant and where competition
is either non-existent (e.g. monopolies such as public utilities) or stable (pure
oligopolies). In most markets, total demand and company demand are not stable – which
makes good sales forecasting a critical success factor.
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A common method of preparing a sales forecast has three stages:
(1) Prepare a macroeconomic forecast – what will happen to overall economic activity
in the relevant economies in which a product is to be sold.
(2) Prepare an industry sales forecast – what will happen to overall sales in an
industry based on the issues that influence the macroeconomic forecast;
(3) Prepare a company sales forecast – based on what management expect to happen
to the company’s market share
Demand forecasts can be based on three types of information:
(1) What customers say about their intentions to buying new products?
(2) What customers are actually doing in the market?
(3) What customers have done in the past in the market?
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The value of a customer intention survey increases when there are a relatively small
number of customers, the cost of reaching them is small, and they have clear intentions.
An alternative way of measuring customer intentions is to sample the opinions of the
sales force or to consult industry experts
(1) The trend: are sales growing, “flat-lining” or in decline?
(2) Seasonal or cyclical factors. Sales are affected by swings in general economic
activity (e.g. increases in the disposable income of consumers may lead to increase in
sales for products in a particular industry). Seasonal and cyclical factors occur in a
regular pattern;
(3) Erratic events; these include strikes, fashion fads, war scares and other disturbances
to the market which need to be isolated from past sales data in order to be able to
identify the more normal pattern of sales
(4) Responses: the results of particular measures that have been taken to increase sales.
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PART-IV
DESIGN OF THE STUDY
NEED OF THE STUDY
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The need for demand analysis of institutional sales of milk arises to predict the
demand for the milk at present and in future days. Ensuring the demand estimation is
vital to our long-term business survival and profitability.
Demand estimation Surveys are an important tool to help us collect the
information we need to understand and evaluate the market structure. This survey
answers tough questions. A well-designed survey can give answer to the most critical
question, Are our products have potential demand in the market?
Demand estimation surveys give us the insight we need to define what is
extremely important to our customers. Once we came to know what is most important,
we use the surveys to compare our product and its each section’s performance on the
customers` wants. Surveys help us to identify which sections may need to improve so we
can provide customers to decide how and where to allocate our product in different
segments of the market.
The need for the conducting this study was to estimate the potential demand of
institutional sales for the company and to know the factors influencing it.
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The Research objectives
To find out the market potentiality.
To identify the new market opportunities.
To understand the new prospective of institutional sales of milk in Belguam
city.
RESEARCH PROCESS
The research was carried out as per steps of consumer research process. The figure
below depicts a model of consumer research process.
STEP1: DEFINE THE OBJECTIVE OF THE RESEARCH
STEP2: COLLECTING AND EVALUATING SECONDARY DATA
STEP3: DESIGNING A PRIMARY RESEARCH STUDY
STEP4: COLLECTING PRIMARY DATA
STEP5: PROCESSING AND ANALYSING THE DATA
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Step1: Define the Objectives of the Research
The first step in the consumer research is to care fully define the objectives of the
study. The objectives of the study were explained earlier. The objectives of the study
were decided at the vary outset to ensure that research design is appropriate. The
statement of objectives helped to define the type and level of information needed.
Step2: collecting and evaluating secondary data
A search for secondary data generally follows the statement of objectives.
Secondary information is any data originally generated for some other purpose other
then the present research objectives. It includes findings based on research done by
outside organizations, data generated in-house for earlier studies, details of other related
documents & even customer information collected by the firms sales departments like
sales call reports etc. Locating secondary data is called secondary research.
In this secondary data was not available, as earlier studies were not carried out on
this topic at on stores level. To meet the objectives primary research was undertaken.
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Step3: Designing a primary research study
The design of a research study is based on the purpose of the study. A quantitative
study was undertaken, as descriptive information was needed.
Research design is the specification of procedures for collecting &analyzing the
data necessary to identify or react to a problem or opportunity, such that the difference
between the cost of obtaining various levels of accuracy & the expected value of the
information associated with each level accuracy is maximized.
RESEARCH DESIGN METHODOLOGY
DATA COLLECTION
DATA COLLECTION APPROACH: Survey Research
DATA COLLECTION INSTRUMENTS: Questionnaires, Attitude scale
SAMPLING PLAN
SAMPLE UNIT: Milk consumption institutions
SAMPLE SIZE: 100 Respondents
METHOD OF SAMPLE SIZE DETERMINATION: Unaided judgment
SAMPLING PROCEDURE: Non probability sampling
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SAMPLING FRAME: Institutional Customers
SAMPLING PLAN: Selection of the customers based on
the quantity Purchases
STATISTICAL TOOLS
Simple percentage method
Measures of central tendency
Graphical representation tools like charts, tables etc
SURVEY DETAILS
LOCATION OF SURVEY: Dharwar
DURATION OF THE SURVEY: 16 days.
Step4: Collecting primary Data
The survey has conducted in all the areas of Dharwarcity during the business
hours. The respondents generally sought no assistance except for one or two questions.
Data collection began in the first week of February and was completed in second third
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week of March. On an average took 10 minutes for respondents to answer the
questionnaire. Respondents who were approached during morning hours were reluctant
in filling up the questionnaire because of the time involved in responding. But when the
customers were approached during afternoon and evening, it received encouraging
response. Some of the customers were very enthusiastic. They showed keen interest and
added their views regarding the survey topic.
STEP: 5 PROCESSING AND ANALYSING THE DATA
Analysis of data is done to build a sort of intellectual Model where the
relationships involved are carefully brought out so that some meaningful inference can
be drawn. It involves the presentation of data through tables, graphs and diagrams.
Statistics was used to translate responses into meaningful information to get the most out
of the collected data. Inferences have been drawn of the analyzed Data with proper
supportive data.
SCOPE OF THE STUDY
The scope of the study is broader than mere gauging the demand estimation of
institutional sales. It makes an effort to build and strengthen relationship with the
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customers. It makes Competition analysis as well as helps in knowing the expectations
of the customers along with the market structure and its consumption pattern.
The result obtained cannot be generalized to all the markets, as the methods for arriving
at the sample size and selecting the sample were unempirical. . The study will help the
company to identify the new segments and need to come up with the new marketing
strategies so to achieve the market leadership and earn the revenues start from the
entering stage. The study will also help the management to decide which strategies are
to be used to tap the potential market
LIMITATIONS OF THE STUDY
Every study has its own limitations. The limitations of this study are:
Small Sample size
Study is restricted by the time
Absence of direct interference of owners in the outlets.
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PART V
DATA ANALYSIS AND INTERPRETATION
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TYPE OF RESPONDENTS
TYPE OF NO.OF
INSTITUTIONS RESPONDENTS
HOTELS 27
HOSTELS 5
HOSPITALS 0
CANTEENS 15
MOILE TEA
53
SALES
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TYPE OF RESPONDENTS
27
53
5
0
15
HOTELS HOSTELS HOSPITALS CANTEENS MOILE TEA SALES
INTERPRETATION:
The above chart shows that there is more number of respondents is from mobile
tea sales as compared to the hotels, hospitalsand canteens. This is all because the
population of mobile tea sales is more in Dharwar because of their character of mobility.
END USE OF MILK IN HOTELS
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END NO.OF
PRODUCT RESPONDENTS
TEA/COFFEE 27
SWEETS 22
CURD 25
OTHERS 18
END USE OF MILK IN HOTELS
20%
29%
TEA/COFFEE
SWEETS
CURD
27% OTHERS
24%
INTERPRETATION:
The above graph shows that in all visited hotels every one use milk for preparing tea
and coffee and few of them use for preparing curds as due to the demand because
demand for the curd is more due to the heat in Dharwar city. And in winter season the
demand for tea and coffee increases due to cold and also in rainy season. And from total
number of hotels visited i.e. 27 respondents maximum of them use milk for preparing
sweets as well as others.
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END USE OF MILK IN HOSTELS
END NO.OF
PRODUCT RESPONDENTS
TEA/COFFEE 05
SWEETS 0
CURD 04
OTHERS 0
END USE OF MILK IN HOSTELS
0%
TEA/COFFEE
44%
SWEETS
CURD
56%
OTHERS
0%
INTERPRETATION:
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The above graph states that in all visited hostels all respondents use milk in preparing
tea and coffee and also maximum respondents use milk for preparing curd due heat in
the city. If hostels start supplying food to the students staying in hostel then this segment
will be of good potential for the NOVA milk.
END USE OF MILK IN CANTEENS
END NO.OF
PRODUCT RESPONDENTS
TEA/COFFEE 15
SWEETS 13
CURD 15
OTHERS 05
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END USE OF MILK IN CANTEENS
10%
32%
TEA/COFFEE
SWEETS
31% CURD
OTHERS
27%
INTERPRETATION:
The above figure states that from all the canteen respondents every one uses milk for
preparing tea, coffee and also curd. to increase there market share and also to retain the
existing customers they go In preparing of Varity of sweets and also like other dishes.
The people in Dharwar city are addicted to tea as the demand for coffee in this city is
very less. Even though there is high temperature the people go in for consuming tea.
END USE OF MILK IN MOBILE TEA SALES
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END NO.OF
PRODUCT RESPONDENTS
TEA/COFFEE 53
SWEETS 02
CURD 04
OTHERS 09
13%
6% TEA/COFFEE
3%
SWEETS
CURD
OTHERS
78%
INTERPRETATION:
The above graph clearly states that end use of milk in mobile tea sales is for preparing
tea and coffee. Due to excess demand for curd and also lassi even the mobile tea sales go
in for preparing another product called as lassi. These people also go in for preparing of
sweets and also others.
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TOTAL CONSUMPTION OF MILK BY THE INSTITUTIONS IN A DAY
TYPE OF CONSUUMPTION
INSTITUTION OF MILK PER
DAY(LTRS)
HOTELS 1861
HOSTELS 18
HOSPITALS 0
CANTEENS 687
MOBILE TEA
1300
SALES
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1300
1861
687 18
0
HOTELS HOSTELS HOSPITALS CANTEENS MOBILE TEA SALES
INTERPRETATION:
The above figure clearly sates that from all the visited institutions the total
consumption of milk is 3866 0f liters from all the visited institutions. The demand for
curd, lassi and others depends on the season but the demand for tea and coffee hardly
goes down which is very negligible. In other season the demand for others like badam
milk goes up but in summer there is no demand for others in Dharwar city. The highest
consumer of the milk from all visited institution hotels are ahead and next comes mobile
tea sales.
SOURCES OF MILK FOR HOTELS
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SOURCES NO. OF LITRES
LOOSE 734
NANDINI 437
DUDH
480
PANDARI
KRISHNA 107
AROKYA 142
TOTAL CONSUPTION OF MILK IN VISITED
HOTELS
6% 7%
39%
25%
23%
LOOSE NANDINI DUDH PANDARI KRISHNA AROKYA
INTERPRETATION:
The above figure clearly states that for the hotels the major supplier of milk is loose.
These are the people who owns there own buffalo’s and early in the morning they supply
milk to all the hotels. As Dharwar city is surrounded by villagers whose main business is
agriculture and
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60. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
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SOURCES OF MILK FOR HOSTELS
SOURCES NO. OF LITRES
LOOSE 8
NANDINI 0
DUDH
05
PANDARI
KRISHANA 00
AROKYA 05
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61. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
TOTAL CONSUMPTION OF MILK IN VISITED
HOSTELS
28%
44%
0%
28% 0%
LOOSE NANDINI DUDH PANDARI KRISHANA AROKYA
INTERPRETATION:
The above chart shows that the suppliers for the visited hostels are the milk man who
comes on motor bike these are the people who have almost captured the market in
Dharwar because of there time management, trust, the way they communicate to the
customers and most importantly the quality of the product is very high compared to the
other suppliers. next are the competitors like DUDH PANDARI AND NANDANI. in
this segment other competitors like the local manufacturer KRISHNA and AROKYA are
not that effective.
SOURCES OF MILK FOR CANTEENS
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62. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
SOURCES NO. OF LITRES
LOOSE 180
NANDINI 164
DUDH
180
PANDARI
KRISHANA 62
AROKYA 72
CONSUMPTION OF MILK IN VISITED CANTEENS
10%
9% 31%
26%
24%
LOOSE NANDINI DUDH PANDARI KRISHANA AROKYA
INTERPRETATION:
This above graph clearly shows that here in this segment other suppliers like
NANDANI,DUDH PANDARI have made it to capture the market by there promotional
activities and also with there sales force they are able to tap the market in this segment
milk man is slowly loosing there market share. and also other competitors like
KRISHNA AND AROKYA are slowly tapping the market.
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63. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
SOURCES OF MILK FOR MOBILE TEA STALLS
SOURCES NO. OF LITRES
LOOSE 537
NANDINI 302
DUDH
267
PANDARI
KRISHANA 62
AROKYA 132
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64. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
CONSUMPTION OF MILK IN VISITED MOBILE TEA
SALES
LOOSE
NANDINI
DUDH PANDARI
KRISHANA
AROKYA
INTERPRETATION:
The above chart clearly states that in this segment the milk man are the primary
suppliers to all the mobile tea stalls. Other competitors are also heading very closely to
the market leaders in tapping the market. The milk men are very comfortable with the
relation with the owners of the tea stalls and also there flexibility towards the mode of
payment. These are the reasons why the milk men or local dairy are the market leaders in
this segment.
TOTAL CONSUMPTION PATTERN OF MILK IN DHARWAR CITY BY THE
INSTITUTIONS
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65. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
NO.OF
RESPONDENTS
END
AND THE
PRODUCT
USAGE
(OUT OF 100 )
TEA/COFFEE 98
SWEETS 38
CURD 56
OTHERS 24
CONSUMPTION PATTERN OF MILK IN BIJAPUR
CITY
24
56 98
38
TEA/COFFEE SWEETS CURD OTHERS
INTERPRETATION:
The above chart clearly states that the end use of milk in Dharwar city is mainly
in preparing of Tea/Coffee. As also earlier stated that the people over in Dharwar are
very much addicted towards consumption of Tea/Coffee. Due to high temperature in this
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66. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
city much of the respondents use milk in preparing curd. And few other respondents use
milk in preparing verity of items..
SUPPLY SCHEDULE OF MILK IN DHARWAR CITY
SULLY CHEDULE
SOURCES OF MILK IN
DHARWAR
NADINI 5-00 AM
DUDH
5-00 AM
PANDARI
KRISHNA 4-45 AM
AROKYA 5-00 AM
LOCAL MILK 5-00 AM TO 7 AM
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67. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
MODE OF PAYMENT FOR SUPPLIERS
MODE OF
RESPONDENTS
PAMENT
CASH 82
CREDIT 18
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68. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
MODE OF PAYMENT
18%
82%
CASH CREDIT
INTERPRETATION:
The above chart shows that all the suppliers believe in cash and carry policy. Few
of brand go for giving in credit for the customers this is because the suppliers do not
want any clashes in their business .Few of milk men go in for giving credit to those
customers who are well known to them and even if credit is given the collection is done
within couple of days as it is daily business.
MAIN SOURCES OF MILK
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69. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
SOURCES OF CONSUUMPTION
MILK OF MILK PER
DAY(LTRS)
NANDINI 249
SAHYADRI 828
MORANA 1118
AROKYA 534
LOOSE/LOCA
1177
L
MAIN SOURCES OF MILK IN BIJAPUR
249
1177
828
534
1118
NANDINI SAHYADRI MORANA AROKYA LOOSE/LOCAL
INTERPRETATION:
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70. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
The above figure clearly mentions that the market leader in all segments are local
dairy and milk men this is all because of earlier stated the good relation, trust,
reliability, time management.
PART-VI
FINDINGS
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71. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
FINDINGS
During the survey it is found that Dharwar is very much potential market for “NOVA
MILK” of KALPATARU DAIRY, as there is always scope for such products which are
of good quality and the city has more disposable income, day by day it is increasing as
you find at least 2-3 people getting employed and minimum 2 to 3 people starting up
new business it might be kirana shop or dealers for any company, so the people in this
city are ready to spend the money for good product and for such products which are
good for health.
During the survey it was found that local dairy is the only person who
is satisfying the need of the customers. There fore it will be a good potential market for
NOVA MILK and also other player “DUDH PANDARI” have come very aggressive
into the market with good promotional activity and the people here say that the quality of
this product is “OK”. This product is produced in solapur (Maharashtra). As the border
of Karnataka and Maharashtra is very near to this city we find outside company doing
good business in Dharwar.
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72. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
Due to the brand name and efforts of aggressive promotional strategies
initially the “NANDANI” is also making a very good business in this city. It has already
captured 31% of total market. “AROKYA” is struggling to tap the market as market
leaders like LOCAL DAIRY,NANDANI,DUDH PANDARI have captured the almost
total market. But the people here complaint regarding the quality of the product.
SUGGESTIONS
The liquid milk should be offered in different range of packets.
The packing should be very strong and should not give bad smell once
it is opened.
Should maintain good relationship with the retailers as they are main
source who will help the company to create brand awareness.
They can also offer storage devices like refrigerator to bulk buyers.
Delivery timing should be maintained on time.
Special care & attention should be given to rural areas as they are the
un tapped & potential market.
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73. “DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES,
in Dharwar
As early as possible diversification in products range offering should be
done. Like (curd, buttermilk & milk powder)
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