Chapter 1 Industrial Overview and Profile

Introduction to H.D.D.C.F.
Haryana is well known for its highly productive milk cattle particularly for the murrah buffalos and haryana cows. The economy of the state is predominated based on the agriculture which comprises small holdings. More than 75% of the cultivators having land holding of less than 5 acres. As a subsidiary occupation they rear and breed cattle. The milk production was estimated to around 115 lt. lakh per day last year. The essence of various programs launched in the state had been to add the Anand Pattern of milk co-operative to Haryana.

Anand Pattern
In this pattern all the function of dairying milk procurement, the milk producers themselves control processing and marketing the supply of inputs relating to milk production and animal, husbandry are also provided at the door steps of producers.Dairying co-operative on and Anand Pattern in Haryana is a three tier co-operative structure consisting of primary milk producers cooperative societies at village level, milk producers co-operatives union at district level and the state, dairy federation.

Primary Milk Producers Co-operative Societies

There is organized one society for one village provided at least 40 milk producers willing to sell at least 50 kg of milk per day. The objective of such a society is to promote the economics of its members by improving the quality and increasing quality of milk production. A milk producer of the age 18 or more and the resident of that village willing to pay admission of fee Rs.1 and purchase a share of Rs. 101 are eligible for the membership of a primary milk society. Such a member can only exercise his voting right if he is not defaulter to the society and has supplied at least 200 liters of milk during the previous year. This society procures milk from its members and supplies the same to the milk union.
1

District Milk Producers Co-operative Union

A district co-operative milk producer union is in the middle level tier in the three tier dairy cooperative structure. These unions organize new primary societies. A society must hold one share of Rs. 100 of the union. Each member of the society had one vote irrespective of the no. of shares. The primary societies purchase milk from producers and supply to milk unions. The union either processes the milk or pass on to milk plant of the federation for further processing. These unions carry out important function related to procurement, processing and marketing of milk & milk products, supply of technical input to organization, organization of new primary milk societies and supervision over the existing societies.

Dairy Federation
THE HARYANA DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION ( HDDCF ) is the state level apex body established to promote the economic interest of milk producers of Haryana state particularly those belonging to weaker section of village community by purchase of milk and processing of milk products and marketing there of by itself or through milk unions.The membership of federation is open to all milk unions. Each member has to pay an admission fee of Rs. 100/- at the time of admission and has to purchase at least on share of Rs. 100/-.

Operation Flood
A recent World Bank audit show that of the Rs 200 crores is invested in Operation Flood II. The net return into the rural economy has been a whopping Rs. 24,000 crores per year over a period of ten years, or a total of Rs.240,000crores in all. No other major development program has matched this input-output ratio.Operation Flood, launched in 1970, has been instrumental in helping the farmer mould their own development. Thus helping reach milk to consumers in 700 towns and cities through a National Milk Grid. It also helped eradicate the need for middlemen thereby reducing the seasonal price variations. As a result of the co-operative structure the whole exercise of production and distribution of milk and milk products has become economically viable for farmer to undertake on their own.
2

1.1Three Phases of development

The scheme sought to established milk producers co-operatives in the villages and make modern technology available to them. The broad objectives are to increase milk production (a flood of milk), augment rural incomes and transfer to milk producers the profits of milk marketing which are hitherto enjoyed by well to do middlemen.

Phase I
Of Operation Flood was financed by the sale with in India of skimmed milk powder and butter oil gifted by the EC countries via the World Food Program. As founder chairman of the National Dairy Development Board (NDDB) of India, Dr. Kurien finalized the plans and negotiated the detail of EEC assistance. He looked after the administration of the scheme as founder chairman of the erstwhile Indian Dairy Corporation, the project authority for Operation Flood. During its first phase, the project aimed at linking Indias 18 best milk sheds with the milk markets of the four metropolitan cities of Delhi, Mumbai, Calcutta and Madras.

Phase II
Of the project, implemented during 1981-85 raised this to some 136 milk sheds linked to over 290 urban markets. The seed capital rose from the sale of WFP/EEC gift products and World Bank loan had created by end 1985, a self-sustaining system of 43,000 village co-operatives covering 4.25 million milk producers. Milk powder production went up from 22,000 tones in the pre project year to1,40,000 tones in 1989, thanks to dairies set up under Operation flood. The EEC gifts thus helped to promote self-reliance. Direct marketing of milk by producers co-operatives resulting in the transfer of profit from milk contracts increased by several million liters per day.

Phase III
Of Operation Flood (1985-1996) enabled dairy co-operatives to rapidly build up the basic infrastructure required to produce and market more and more milk daily. Facilities were created by the co-operatives to provide better veterinary first-aid health care services to their producer members.

1.2 The Indian Consumer

Indias growing middle class will drive change in food consumption. Dairy products are highly income elastic.

The Indian consumer is moving from subsistence to basic food categories.

Gradual shift from only cereal consumption to include Dairy and other protein products.

The share of HH food expenditure on dairy increasing:Currently 18% in Urban India (increased from 13% in 1989-99) Currently 15% in Rural India (increased from 10% in 1989-99)

1.3 Dairy In India

PRE- INDEPENDENT DEVELOPMENT
It is said that in India people started rearing cattle for obtaining milk to be consumed as food around 2000 B.C. They priced the cow milk more than its meat. A preliminary study concerning the composition of milk by indigenous cows and buffaloes was conducted during 1914 on the advice of board of agriculture and attempts were made to establishing pedigree herds of India breeds. An empirical council of agriculture research at present INDIAN COUNCIL OF AGRICULTURE RESSEARCH (I.C.A.R.) was establish during 1929. The first milk union known as LUCKNOW MILK PRODUCERS CO-OPERATIVES UNION LIMITED was established during 1937 and another co-operatives venture was established in KAIRA district at ANAND during 1946.

POST-INDEPENDENT DEVELOPMENT
Separate Dairy Development Board was set up in 1965. Dairy acquire national reorganization. Concept of planned approach and intensive cattle development was introduced at all levels. Program under operation flood were launched. These programs open a way for the Dairy Industry to come up as producers oriented industry.

KEY SUCCESS FACTORS

Branding. Deep insight into the Indian consumer. Innovative product offering. Competitive and penetrative pricing especially for mass communication categories.

Distribution Efficient nationwide dry and wet cold chain.

High quality raw milk.

Chapter-2

COMPANY PROFILE

From ancient times, Haryana is known as home of milk as a famous saying tells us "Deshonmeindesh Haryana jitdoothdahikakhana" cattle of Haryana are world famous for their high yielding capacity for instance Haryana cows and murrah buffaloes are among the best yielder of milk in the country.

MISSION
We at VITA our endeavor to satisfy the taste and nutritional requirement of the customer of India through excellence in market by our committed team throughCo-operative networking. We are committed to offering quality products that provide best value for money.

KEY THRUST
Expand production of existing product. Identify and marketing of new product. Building capacity of marketing of fresh product. Attract and retain quality manpower. Integration of Co-operatives with common branding.

VALUES
Co-operative Customer Orientation Integrity
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Committed to producers Excellence Leadership Quality Innovation Growth Orientation Belongingness Pride of Organization Employee Satisfaction

QUALITY & FOOD SAFETY OBJECTIVES

Together we shall
WIN CUSTOMERS CONFIDENCE.

OPERTE QUALITY & FOOD SAFETY SYSTEM.

REDUCE WASTAGE AND POLLUTION.

KEEP ON IMPROVING

In order to achieve the following quality objectives are designed.

SR.N.

QUALITY OBJECTIVES

RESPONSIBLE FUNCTION

RESPONSIBLE OFFICER

1.

Delight our customers by providing safe and high milk products. quality milk and QUQLITY CONTROL INCHARGE QULITY CONTROL

2.

To reduce use of water and energy by 2% during the year. ENGINEERING INCHARGE ENGINEERING

3.

To achieve growth rate on minimum 5% sales during the year. SALE INCHARGE SALE

4.

To reduce handling losses by 2% from the previous year. PRODUCTION INCHARGE PRODUCTION

5.

Judicious and efficient utilization of resources by employees motivation and satisfaction. PERSONNEL INCHARGE PERSONNEL

2.1Objectives of the company

The objective of the union shall be to carry our activities conductive to the economic development of milk producers by production, procurement, processing and marketing of commodities. To achieve the objectivity the organization is carrying out activities under three segments: Field Activities. Processing Activities. Marketing Activities.

Field Activate
To facilitate farmers (Milk Producers) in organizing. Dairy Cooperation Societies for their Socio-economic uplift. To purchase milk from Dairy Cooperation Societies on remunerative price. To arrange transportation of milk from collection points of Dairy Cooperation societies to Dairy Plant or Chilling Centers. To arrange and provide milk cans testing equipments, testing chemicals, technological items and stationary etc. required as per requirement of DCSs. To arrange and make available inputs like cattle feed, mineral mixture, good quality fodder sees, milk producers & items related to health care of mulch animal. To arrange training of required know-how for farmers & functionaries of C.S. To guide supervise & control the working of Dairy Cooperation Societies.

Processing Activities
This Milk Union has one Dairy Plant at Sirsa leased by Haryana Dairy Federation and its main products are Ghee, Powder, Paneer and liquid Milk, Dahi, Lassi under the brand name.

Marketing Activities
The marketing policy is devised and modified under the guidance of Haryana Dairy Federation and in return royalty is to pay it Federation as per mutual agreement. Quality management policy has been adopted and stands certified under ISO 9001-2000 & HACCP-15000 to ensure quality and to get recognition in marketing circles.

Product Range
Toned milk Double Toned milk Full cream milk Table butter Ghee Skimmed milk powder Paneer JalJeera Mango Drink Milk Cake MithiLassi NamkeenLassi

Capacity of milk plant: 1.5 Lakhs liter/ per day milk turned into powder : 1 lakhs / per dayPasteurized milk as such Placed in market: 50,000 liter/ per day.

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Milk Reception
Milk plant, Sirsa is handled by Sirsa Co-operative milk Producer's Union Limited, Sirsa. Milk is collected from the villages through docks are used for entry of Milk from trucks. A sample is taken from each container from testing and sample giving positive test rejected and left of the milk is put into tub from which through pipes milk goes for the further processing payment is made to milk producer by weighing & measuring fat percentage. After reception two types of tests are done to judge the quality of milk. Platform test/ organoleptic tests Laboratory tests

Composition of Milk
Contents Fat Water Albumin Casein Lactose Ash Other Percentage 3.75 87.34 0.40 3.00 4.70 0.75 0.06

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2.2Sales Offices

HARYANA is one of the most progressive states of Republic of India. In the domain of dairy development it is well known for its productive milk cattle particularly the 'Murrah' Buffaloes and Haryana Cows. The economy of the state is predominantly based on agriculture. People rear and breed cattle as a subsidiary occupation. Milk production in the State was estimated around 128.18 lac litres per day during 1999-2000.
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There are five milk plants operating in the Cooperative Sector in Haryana. These are located at Ambala, Jind, Rohtak, Sirsa and Ballabgarh having a handling capacity of 4,70,000 litres per day.

Chilling Center

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2.3District Milk Producers

The Primary Milk Societies (PMS) functioning at the village level join to form a Milk Union for carrying out such activities which are conducive and essential for the socio-economic development of milk producers, by procuring and processing of milk and marketing of milk products. The Board of Directors comprising 9 members elected out of the Chairmen of affiliated Primary Milk Societies run the day-to-day administration through Chief Executive Officer.

These Unions either process milk at their own level or pass the same to the milk plants of other milk unions for processing. They also organize new Primary Milk Societies at the village level. A brief matrix of the Milk Unions is as follows:

Sr. No.

Name of the Union Ambala Rohtak Jind Kurukshetra Sirsa

Date of Registration

1. 2. 3. 4. 5.

10.03.1973 12.07.1991 10.07.1991 05.07.1991 10.01.1978

The essence of various programmes launched in the State has been to adopt the Anand pattern of Milk Co-operatives. Under this system, all the functions of dairying like milk procurement, processing and marketing are controlled by the Milk Producers themselves. It has three tier system comprising milk Producers Societies at the village level, Milk Producers Co-operative Union at the district level and the state Milk Federation as an apex body at the State level. The Haryana Dairy Development Co-operative Federation Ltd. registered under Haryana Co-operative Societies Act came into existence on April 1, 1977. Its authorized share capital is
14

Rs.2000 lacs. It was established with the primary aim to promote economic interests of the milk producers of Haryana particularly those belonging to weaker sections of the village community by procuring and processing milk into milk products and marketing thereof by itself or through its unions. In furtherance of the above objects, the Federation undertakes a number of activities such as establishment of milk plants, marketing of VITA BRAND milk products of the Milk Unions. Its turnover during 2006-07 was to the tune of Rs.355.00 crores. It also extends technical guidance to the Unions in all spheres of personnel, technical, marketing and financial management as well as makes them quality conscious, through use of modern methods of laboratory testing of various products.

Quality - VITA the Hallmark of Quality

As part of stringent quality measures, milk required for processing VITA products is procured from Dairy Cooperative Societies only. It is ensured that the milk is transported to chilling centres and plants in clean and sterilized milk cans as quickly as possible. Al quality measures as per Standard of Bureau of Indian Standards/Agmark are being applied before the products are marketed. Well-equipped laboratories are functioning in the chilling centres and milk plants to maintain ideal quality standards. VITA is the endorsement of quality, a commendation we are Proud of. Milk Plant (Located in Sirsa district at Begu Road, covering 15 acre area) was installed in 1983 as a chilling center by Haryana Dairy Development Co-operation later it came out as a composite milk plant in the year 1996 with handling capacity of 1 lakh liters per day. Haryana Dairy Corporation is converted into federation in 1979 under operation flood-I. In November 1982, the responsibility of milk procurement through societies and tip was handled over to milk unions under operation flood-2. Before November 19, 1982 milk was collected directly from collection centres and system was not full proof. In 1991 ten milk unions were converted into 5 milk unions by amalgamation to increase the area of operation behind each milk plant for capacity feeding.
15

In April 1992, Milk plants were leased out to milk unions to remove the confrontation between milk unions and plants to remove the confrontation between milk unions and plants to make the system similar to NDDB, Anand Pattern which has been applicable in whole India in dairying field. This has been applicable in whole. India in dairying field. This step stopped commission system applicable to unions Automotive of milk purchase price was also given which was withdrawn later on the Nov. 1992.

Board of Directors

Designation Chairperson Managing Director Chief Administrative Officer

Name SmtChandravati ShDevender Singh ShPradeepKasni

Phone 0172-2585507 0172-2586826,2585159 0172-2583050

Organizational Structure
The head office of HDDFC limited is situated at Chandigarh, which looks after the functioning of all the five milk plants and chilling centres. At the top level there is board of directions to manage the activities of federation. The board is headed by chairman. Chairman of Co-operative unions of different districts and register, co-operative societies is member of the board of directors. The Chairman's post is held by person nominated by Haryana govt. managing director is head of the institution in the top executive position.

16

The business of plant is managed by General Manager subject to control and supervision of Managing Director, HDDFC Ltd. General Manager of all five milk plants come directly under the control of Managing Director. General Manager takes care of all the milk functional departments at the plant except the milk procurement department, which is directly controlled by head office through district milk unions.

Products and packaging

Milk plant is producing Paneer, Ghee, skimmed milk powder(SMP) whole milk powder (WMP). Ghee is packed in 1 KG, 2 KG, 5 KG and 15 Kg packs. All are meant for domestic use. SMP is packed 1 to and 1 KG for domestic used and in 25 kg bag far bakeries etc. WMP is packed in kg tins for domestic use and into bags for military. Paneer packed in polythene bag (250) label on paneer polythene is safal.

Distribution of Goods or products

There are twelve registered distributors at least one in each district of its operational region registered under head office. The goods for domestic use are supplied to dealers, relatives and to ultimate consumers through registered distributors. Besides these their sales office of plant in Chandigarh and Delhi, which receive orders and supply goods.

Channels of Distributions:
Following pattern has been adopted by the plant for transferring goods to ultimate consumers. Direct selling to consumers. To consumers through distributors. To consumers through retailers.

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Store Department
The main function of store department are receipt of goods, stores and issue of materials when needed and keeping proper record of all incoming and outgoing materials. The stores department has two main branches: 1) 2) General stores. Finished Goods stores. Ghee Store. Paneer Store. Milk Powder Store. Ghee and powder can stored at room temp but paneer can be stored in refrigeration or cold temperature (3C).

Water supply and Disposal

A regular supply of water is must in the plant because of the nature of products and production process. The two tube wells in the plant serve this purpose. There is plant which converts hard water into soft water on the basis of ion-exchange principle. soft water is used for all purposes in plant.

Disposal
Water cleaned by E.T.P. (Effluent treatment plant) then moves to the disposal tank and from here it is disposed off in the field with the help of two disposal pumps of 30 and 40 HP respectively. This treated water is good for crops and at present supplied free of cost to the farmers.

Pasteurization
Pasteurization refers to the process of heating each and every particle of milk to atleast 63C for 30 minutes or 72C for 15 second in approved and properly equipment and immediately cooling it to or below
18

Purpose
To render milk safe for human consumption by destruction of percent pathogenic microorganism. To improve the keeping quality of milk by destruction of almost all spoilage organisms (85-99 percent)

2.4Detail of products sold

PRODUCTS MANUFACTURE BY PLANT ITSELF

GHEE

CURD

19

 PANEER

SWEETS

20

 FLAVOURED MILK

Flavoured milk is available in four different flavor. MILK

21

 JALJEERA

LASSI

22

Butter

Jalebi

Tomato Soup

23

2.5Sale System Of Vita Milk Plant

Any sequence of institution from the producer to the consumer including one or any number if middlemen are called distribution.

VITA MILK PLANT DISTRIBUTION CHANNEL VITA Consumer Goods

Dealer Retailer Retailer

Ultimate Consumer

VITA Industrial Goods

Industrial Users
\

24

(1) Manufacture Ultimate Consumer Here in this part Vita have no intermediaries. It is called direct distribution channel. Vita has its own shops and has good selling of products.

(2) Manufacture Retailer Ultimate Consumer In this part of distribution Vita supply its product in only in Jind City.

(3) Manufacture Dealer Retailer Ultimate Consumer And all other shops of Vita allied this channel.

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Chapter-3 RESEARCH METHODOLOGY & OBJECTIVE

Objective of the Study
Most products do not sell their goods directly to the final users. Between producers and final users stand the marketing channel. These include the Retailers or Shopkeepers. From this study it was expected to find out that: To know the level of support provided by the company to the retailers. To find out the problems faced by the retailer in selling and promoting the vita products. To find out what type of benefits should be provided to the retailers in order to maintaining good relations with them. To know the products which are highly demanded by consumer so that their supply can be increase and thus profitability. To know the preference level of the consumers for vita products in comparison to products of competetitors. To know the factors considered by consumers while buying milk products. To find out whether both retailers and customers are satisfied with the schemes provided by the company on festive season or not.

26

Scope of the Study

The study involved the market survey of Sirsa, which is a major market of Vita products. The study is aimed at finding out the image of Vita, hold in this market and also to find out the retailers problem in the sale of Vita products. The aspect covered includes the kind of competition prevalent in the market, the growth of Vita and promotional practices to ensure quick movement of product from retail counters. Company is definitely in the advantageous position because of their high image rate. The entire customer is the central point in the marketing strategy of almost all the players. Thus, emphasis is on building customer satisfaction through Service & Quality. o Supply system. o Advertisement facilities. o Better quality o Easy Availability o Proper Packaging

Research design
Research Design is purely and simply a framework for the study that guides the collection and analysis of the data. There are basically three research designs: Exploratory Descriptive Experiments. All the three designs are not mutually exclusive and combination of all three could be used for the successful completion of the project report.

27

DESCRIPTIVE

EXPLORATORY

EXPERIMENT

The research design used for the present problem is Exploratory Research Design, as the retailers survey is conducted to get the desired information. Exploratory study is characterized by flexibility and informality. This study will help Milk fed to have more sellers for its products and will help in improving and further strengthening its relation with retailers because it is in the hands of the retailers to sell the product, they are the ultimate decision makers for increasing the sale of various brands. Study will also help the company to improve service in the market and to improve upon the areas in which it is lagging.

Data collection method

The data collection method used for this very study is Primary and secondary data collection. Communication and Observation are two basic means of obtaining primary data. For this problem Communication is used which involves the questioning of respondents to secure the desired information using a data collection instruments called Questionnaire. For the present problem structured and undisguised questionnaire schedule is used for retailers and end users. In the structured questionnaire questions are presented with exactly the same wording and in exactly the same order to all respondents. A good mix of opens and closeended questions were being asked from the respondents to get the desired information.

Presenting of questionnaire
The questionnaire schedule mentioned above was administered to the retailers and customers of Sirsa city and was tested against the criteria of ease of administration,
28

continuity and flow of sharp focus of question. The drawbacks were identified and the questionnaire was accordingly modified before being administered to the other sectors.

Sampling Plan
Sample of 25 retailers and 50 customers were selected from various areas of Sirsa. Regardless of the method used to obtain the primary data the researcher has to decide whether to use census method i.e. only a small portion of population. As it is very difficult to contain information in census method, so normally sampling method is followed. There are mainly two categories, under which various sampling methods can be put: Probability Sampling Method. Non-Probability Sampling Method.

In this study Convenience sampling under Non-Probability Sampling is followed. Retailers and customers were selected by this method from the city.

Field Work
As the study mainly aims at what retailers and customers think about Vita and also to know through them that what their preferences are. The main interest of the study was to find out the brands more acceptable to the customer on the basis of price, quality advertisement and range wise, what type of service are provided to retailers and customer the company, Scheme offered by the company and the problems retailers face with various brands.

29

Chapter-4 DATA ANALYSIS AND INTERPREATION

The analysis has been done on the basis of data collected from Retailers (Sample size 25) through questionnaire. 1. Milk 14 Which Vita product you sell most? Dahi 3 Makhan 3 Ghee 2 Any other 3

Ghee 8%

Any other 12%

Makhan 12% Dahi 12%

Milk 56%

Interpretation:
76% of the sample size said that the milk is highly demanded in the market and this may be probably due to the less no of competitors but as a new competitor named LAKSHAY has recently entered market so the company should increase the promotional efforts and also provide some more benefits to the retailers to give a boost to them to maintain the sales. Only 12% of the retailers agreed that there is demand for vita butter in the market. This is surely due to the high demand of amul butter.

Company should work on improving quality and building brand image.

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2.

Do you face any problem with the quality of Vita's products?

Yes 2

No. 23

Yes

No.

23

Interpretation:
Survey transpired that, 92% of the retailers/respondents were satisfied with vita milk products, whereas only 8% respondents were having some complaints, which meant that company's products are good. This is probably due to the quality standards maintained by the company. But there is a need to conduct surveys to know the quality problems to retain the market for long term.

31

3.

Are you happy with the services provided by the company?

Yes 6

No. 19

Yes

No.

19

Interpretation:
Survey transpired an astonishing fact that 76% of the retailers/respondents were not satisfied with the services provided by the company. They highlighted the problems regarding low query resolution and even sometimes the stock was not provided on time which overall affects customers. 24% of retailers were satisfied but the company should increase this % of satisfied retailers to build a strong distribution network.

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4.

If no, which type of problem you are facing?

Non-availability in season 2

Poor Dealer's Network 3

Both

20

20

3 2

Non-availability in season

Poor Dealer's Network

Both

Interpretation:
During the Survey this fact came into light that 8% of retailers/respondents are facing problems regarding non-availability of products in season and 12% are facing problem of poor dealer's network, retailers themselves go to the dealers' shop to purchase any vita product. 80% of the Retailers were having both of these problems. The company should solve this problem as soon as possible otherwise market will be captured by the competitors.

33

5.

Whether any advertisement material is provided by the company?

Yes 17

No 8

Yes

No

17

Interpretation:
During the Survey this fact came into light that 68% of the retailers/respondents agreed to the fact that they were provided enough advertising material which is very important for window display to catch the attention of customers.

34

6.

Whether any promotional scheme is provided by the company?

Yes 2

No 23

No

23

Interpretation:
During the Survey this fact came into light that retailers/respondents are not provided any promotional schemes, 92% of the respondents told that they are not provided any scheme, whereas only 8% said that they were provided promotional schemes. If this will continue the
company will not be able to build and maintain a strong distribution network and will not be able to retain market share.

35

7.

For how long company's representative visits you ?

Once in fortnight 3

Once in month 2

Never 20

3 2
Once in fortnight Once in month Never

20

Interpretation:
During the Survey this fact came into light that company's executive visits only to nominal retailers. 80% of the retailers admitted that no company's executive ever visited them. Only 20% admitted that executives visit them fortnightly or monthly. If the retailers are not attended properly then they may get churned by the competitors as distribution network will be very weak.

36

8.

Do you sell only vita milk or other products also?

Yes 11

No 14

11
Yes No

14

Interpretation:
During the Survey this fact came into light that 56% of retailers/respondents are not selling vita's products other than milk product, whereas 44% were selling other products with milk products. This may be probably due to the low margins, low demand or defects in

supplying so the company should work on this to build strong channels to make availability of all products at maximum places to push sales and thus profit margins.

37

9.

If no, why don't you sell other products?

Less demand in Less Quality the market

Company's poor marketing strategy

Any other

6
Less demand in the market

2 8

Interpretation:
28% of the retailers told that the reason for not selling other products of vita then milk was only due to poor marketing strategy of the company. There are no promotional schemes and advertisements are also not attracting the masses.Other retailers pointed out that24% said it was merely due to poor quality, other 24% blamed it on less demand and other 24% told no specific reason for the same. 38

Any suggestion ?

When the retailers/respondents were sought suggestions regarding the Vita's products, there were some complains and suggestions for the company. Some of the respondents told that most of the company's products are not popular among the general public except milk. Company should emphasize on other products, some were seeking better service from the company. Some respondents told that in order to stimulate the other products company should make some advertisements and initiate some innovative schemes.

39

The analysis has been done on the basis of data collected from Customers (Sample size 50) through questionnaire. 1.
Milk 38

Which Vita' product you purchase most?

Butter 4 Paneer 3 Any other 5

5 3
Milk Butter Paneer Any other

38

Interpretation: During the Survey this when the customer/respondents were queried that which product they purchase most, 76% of consumers were inclined towards the milk,whereas only 8% and 6% respondents use to buy butter and paneer respectively from the company, 10% of respondents are buying other products. High sales of milk are surely due to high quality but sales butter should be increased.There is a need to adopt suitable strategies concerning AMUL.
40

2.

How'll you rate Vita's products?

Very good 34

Good 8

Average 3

Can't say 5

3
Very good Good

Average Can't say

34

Interpretation:
When the customer/respondents were asked to rate vita milk products, 68% of respondents rated the products as 'very good' , 16% rated them as 'good and 6% of consumers found the products to be average. And remaining 10% have not expressed their views on the question. There is a need to improve quality standards so tha all consumers can be brought under the category of completely satisfied consumers.

41

3.

Whether advertisement effects your purchasing decision?

Yes 32

No 18

18
Yes No

32

Interpretation:
During the survey, it has come into light that 64% of respondents think that advertisement of any company effects their purchasing decision, whereas 36% of respondent's reply was negative. Therefore the company should make effective advertisements to attract more and more customers to increase market share.

42

4.

Whether you faced any shortage of milk in the summer season?

Yes 39

No 11

11

Yes

No

39

Interpretation:
During the survey, it has come into light that 78% of customers said that they faced the problem of shortage which means that the products were not available when required.This highly hampers the sales and profits of the company as due to this the customers get turned to products of competitiors.

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5.

How would you rate Vita's product quality?

Better than others 28

Same as others 17

Worse than others 5

Better than others

Same as others

17

28

Worse than others

Interpretation:
During the survey, it has come into light that 56% of respondents think that Vita's products are better than others, 34% were unable to differentiate the quality of Vita's products with others whereas according to 10% of remaining respondents, Vita's products' quality is inferior than others. The company needs to work on improving quality and may undertake activities like new packing patterns which are attractive to differentiate the products from those of others. A survey among customers who are not satisfied with products should be done to look for loop holes and win their confidence also.
44

6.

How would you rate the price of Vita's products?

Very high 4

high 11

Moderate 35

4
Very high

11

high

Moderate

35

Interpretation:
Quality comes with a Price, we all know about this fact. So if the product is of good quality consumers dont mind paying price but it should not be so high that customers find it costly. The company can introduce products in different segments for different consumers price wise but not compromising much with quality. 70% of consumers find the price moderate and 22% find vitas products highly priced. And remaining 8% very high so there is a need to introduce products price segments wise.

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7.

Whether company provide replacement scheme?

Yes 38

No 12

12
Yes No

38

Interpretation:
When the respondents were queried whether their products are replaced in case of deficiency in the product, 76% of respondents told that products are replaced in case of deficiency.This is important to win customerss confidence and enhance their loyalty.

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8.

While making purchase what are the key factors you consider?

Quality 11

Price 12

Brand Name 19

All of these 8

11

Quality Price Brand Name All of these

19

12

Interpretation:
When the respondents were queried that which factor affects most their buying behavior. 38% admitted that brand name effect their decision, 24% of respondents consider price of the product, 22% of respondents were saying about the quality. Despite above all there were 16% of respondents who consider all above factors while purchasing. This simply means that company should make efforts for brand building and products should also be supplied at reasonable prices to retain the market and quality should not be compromised at all.

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9.

Whether company provides any scheme on various festive occasions?

Yes 3

No 47

Yes

No

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Interpretation:
In todays competitive market it is very important to exploit opportunities so there is a need to provide schemes on festive seasons.94% of customers said that there are no promotional schemes provided by the company. Like on festivals like diwali company can introduce gift packs of sweets etc.
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10.

Any Suggestion

When the respondents were asked for any suggestion, most of the people were saying that company should improve its retailer's network and better services should be provided there. Some also told that company have to manage the crises of shortage of milk in summer season. There were also some suggestions regarding the advertisement of the vita products, there is no display board of Vita on the retailers' shop. Some suggested that company should do some thing for other products. They are lagging far behind than milk.

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Major Findings
There are five milk plants operating in the Cooperative Sector in Haryana. These are located at Ambala, Jind, Rohtak, Sirsa and Ballabgarh having a handling capacity of 4,70,000 litres per day.

The company enjoys a good image but the problem one of the main problem is in the distribution network. Products like flavoured milk are not available most of the times thus hampering the profitability.

Such products usually attract youth and kids and can increase the profits if promoted properly.

Retailers complained that there are no promotional schemes for them which are no doubt very important in todayss competitive market to pump up sales.

Usually there are no schemes on Festive season for consumers. Though festivals like Diwali could be exploited to maximize sales. Gift packs of Sweets can be introduced on Festve seasons.

As specifically Concerning Sirsa and other parts of Haryana there is a need to increase the no of booths so that the products are easily available.

The competition is rising, Recently a new competetior Lakshay has stepped in, so there is a need to carry out promotional activities to attract customers.

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Retailers also complained that the less promotional material was provided to them by the company. Though it is very important now a days to attract the attention of customers.

Though Vita is a trusted brand in Haryana but it is important to capture the new markets to retain in market. So there is a need to enhance distribution channels.

It is also required on the part of the company to provide some variety to consumers so that they are not taken away by competetiors. Like more variety in flavoured milk could be introduced to attract youth and segment of kids.

The company is not doing anything to enhance relations with customers which is very important today. Though it is a govt organization but still the competition is increasing and it is important to keep customers intact.

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CHAPTER-5 CONCLUSION AND LIMITATIONS Conclusion

Retailers are the most important link between manufacturers and consumers as it's in their hands to sell the product. The retailer will only go for that company whose products not only are in demand but also which keep the retailers benefits in mind. Now days customers are very concerned and careful about the products they buy and want the best. Customer is the pivotal point in the marketing strategy of almost all the players. In summer seasons there always remains shortage of milk, which not only troubles retailers but also to the consumers. Market survey reveals that Vita products hold a good

position in Sirsa city. Mostly milk's sale is best in the market. Vita's products are good in the market as is clear from 23 retailers, who admit that they never faced any problem regarding quality. This fact also came into light that most of the retailers are not satisfied with the company's service. They personally go to the dealer's shop to purchase milk for their shop, no company's executive visits them. Non-availability of milk in summer season and poor dealer's network were the two major problems for the retailers. Poor advertisement is also the major weakness of the company. Leave the other advertisement sources, there were only a number of retailers, where board of Vita was placed before there shops. There were 14 respondents, who were not selling other products of vita. Mostly retailers sell only milk.

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When I moved to the customers, they also admitted that they mostly purchase only milk from Vita, only a few number of respondents purchase other products of vita. Most of the customers rate Vita's products' quality as good. Most of the consumers admitted that advertisement affects their buying behaviour. Consumers also admitted that they faced crises during summer season.

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Limitations
Various limitations, which have affected the completion of this project, are listed below. In order to provide reader an insight into the special; considerations, pertaining to the work done. As the study is entirely based on the Field Work and Surveys, so people give their own ideas and assumptions, which sometime contradict each other and can not be ensured as accurate. While doing the survey respondents take lots of time in understanding the question and responding to them. More over due to confidential nature of the information in certain aspects there may be a possibility off their having given certain inaccurate information. Limited time span was also a problem. While doing retailers survey, some of the retailers got busy while filling the questionnaire and I was to wait for them. As the survey was confined to 25 retailers and 50 consumers, so the chances of biasness can not be ruled out.

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CHAPTER-6 SUGGESTIONS
If we talk about the Vita's milk, company position is outstanding in the city, but when we come to the other products of Vita, whole scenario changes and we come to know that company is surviving in the market only on the basis of milk. Excluding 3/4 products of Vita, other are only show piece in the retailers shop. Company, in Sirsa is in advantageous position not only because of its quality but also for its monopoly in the City. No other company sell milk in the city, so company has a hold over the market but when company enters the market with other products, company's position gets diminish because of other players in the market. Here are some suggestions, which Vita can adopt : First of all, company is suggested to enhance its dealers network, because of this weakness both retailers and consumers are facing hardships. Company should also pay its attention towards other products of the company. Even some of the retailers were not in the knowledge of all products of the company. Company has to think regarding advertisement of its products. Victory never means cleverness. Though company's position is good, but it is only for milk, which is the need of hour. In future, coming of new player can give a big jolt to the company so the company should adopt some marketing strategies. Some Marketing Sales Executives should be employed for the purposes of sales promotion. Company should also provide innovative schemes on various festive occasions for both retailers and consumers.

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SOME OTHER RECOMMENDATIONS

Company already producing quality producers by working on Products Innovation, Customer Care and overall Customer Satisfaction, but during the survey it is observed & conclude that still there may some change to be brought.

More and more publicity. Frequent visit to the customer. Better and fast services to the customers. Optimum use of promotional tools. Stress on R & D department for the better finishing. To formulate new scheme. To give more guidance to the customers. To give Prizes to the customers. To improve the packaging positive. To improve the behavior of the workers. To start coupon schemes because to attract customer Customer awareness is necessary.

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Reference
www.vitaindia.com www.google.co.in www.wikipedia.com Customers of VITA products. Retailers of VITA products. Books Used: o C.R. Kothari (Business research methodology) o Philip Kotler (Marketing Management)

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ANNEXURE
QUESTIONNAIRE (For Retailers) This questionnaire is a compulsory part of a project report, needed for the award of master Degree in Business Administration (MBA). Please answer the following questions. The data gathered here shall strictly be kept confidential and shall be used only for academic purposes. Name . 1. Which Vita product you sell most ? i) iv) 2. Milk Ghee ii) v) Dahi iii) Makhan Firm name ..

Any other

Do you face any problem with the quality of Vita's products? i) Yes ii) No

3.

Are you happy with the services provided by the company? i) Yes ii) No

4.

If no, which type of problem you are facing? i) ii) iii) Non-availability in season Poor Dealer's Network Both
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5.

Whether any advertisement material is provided by the company? i) Yes ii) No

6.

Whether any promotional scheme is provided by the company? i) Yes ii) No

7.

For how long company's representative visits you ? i) ii) Once in fortnight Once in month iii) Never

8.

Do you sell products of vita, other than milk products? i) Yes ii) No

9.

If no, why don't you sell other products? i) iii) iv) Less demand in the market ii) Company's poor marketing strategy Any other Less Quality

10.

Any suggestion ?

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QUESTIONNAIRE (For Consumer) This questionnaire is a compulsory part of a project report, needed for the award of master Degree in Business Administration (MBA). Please answer the following questions. The data gathered here shall strictly be kept confidential and shall be used only for academic purposes.

Name . F's Name ..

Age. Occupation .

1.

Which Vita' product you purchase most? i) iii) Milk Paneer ii) iv) Butter Any other

2.

How'll you rate Vita's products? i) iii) Very good Average ii) iv) Good Can't say

3.

Whether advertisement effects your purchasing decision? i) Yes ii) No

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4.

Whether you faced any shortage of milk in the summer season? i) Yes ii) No

5.

How would you rate Vita's product quality? i) ii) iii) Better than others Same as others Worse than others

6.

How would you rate the price of Vita's products? i) iii) Very high Moderate ii) High

7.

Whether company provide replacement scheme? i) Yes ii) No

8.

While making purchase what are the key factors you consider? i) iii) Quality Brand Name ii) iv) Price All of these

9. i) 10.

Whether company provides any scheme on various festive occasions? Yes ii) No

Any Suggestion..

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