A STUDY ON

IMPACT OF ADVERTISING AND SALES PROMOTION

ACTIVITIES ON THE GROWTH OF BSNL
A Mini project report submitted to Jawaharlal Nehru technological university, kakinada in

Partial fulfillment of the requirements for the award of Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by
A.LEELA SAI

Regd. No. 18HP1E0034

Under the Guidance of

Mr.N.JANARDHANA RAO

M.B.A, M.Com, M.Phil, (Ph.D)

ASSOCIATE PROFESSOR

DEPARTMENT OF BUSINESS ADMINISTRATION

ANDHRA LOYOLA INSTITUTE OF ENGINEERING AND TECHNOLOGY

(Approved by AICTE New Delhi, Recognized by Govt. of A.P., Affiliated to JNTUK, Kakinada)

Vijayawada – 520008, Krishna District. A.P

2018-2020
 CERTIFICATE

This is to certify that this project entitled “A STUDY ON IMPACT OF

ADVERTISING AND SALES PROMOTION ACTIVITIES ON THE
GROWTH OF BSNL” is the bonafide work done by Mr. A. LEELA SAI (Roll
No: 18HPIE0034), under management guidance and submitted to the Department
of Business Administration, ANDHRA LOYOLA INSTITUTE OF
ENGINEERING AND TECHNOLOGY, VIJAYAWADA, in partial fulfillment
of the requirements for the award of the degree of Master of Business
Administration by JAWAHARLAL NEHRU TECHNOLOGICAL
UNIVERSITY, KAKINADA.

Mr. N. JANARDHANA RAO Rev. Fr.K.ANIL KUMAR S.J

Associate professor Head of the Department
Project Guide
 DECLARATION

I hereby declare that this Project Report Entitled “A STUDY ON IMPACT

OF ADVERTISING AND SALES PROMOTION ACTIVITIES ON THE
GROWTH OF BSNL”, has been prepared by me in partial fulfillment of the
requirement for the award of the degree of “Master of Business Administration”
By Jawaharlal Nehru Technological University, Kakinada.

I also declare that this project report is the result of my own effort and that it
has not been submitted to any other university for the award of any Degree or
Diploma.

Place: Vijayawada A.LEELA SAI

Date: 18HP1E0034
 ACKNOWLEDGEMENT
I am particularly grateful to the Director. Rev. Fr.Dr. A.FRANCIS
XAVIER, S.J, Director, Andhra Loyola Institute of Engineering and Technology,
Rev. Fr. K.ANIL KUMAR, S.J, Asst. Director, Rev. Fr. J.CHIRANJIVI, S.J,
Asst. Director, Dr.O Mahesh, Principal of Andhra Loyola Institute of Engineering
and Technology for providing there valuable suggestions and advices during the
project.

I express my deepest sense of gratitude to internal guide and

Head of the Department Rev. Fr. K.ANIL KUMAR S.J, Department of Business
Administration Andhra Loyola Institute of Engineering and Technology, for his
valuable encouragement and cooperation throughout the completion of the project.

I do take this opportunity to thank all of my faculty members who gave full
cooperation and support for the successful completion of my project.

I have also made an extensive use of the Library of Andhra Loyola Institute
of Engineering and Technology, for which I am greatly indebted to Mrs.k.Swathi
Kiran, Mrs.K. Mallika, Librarian & other staff members who are very courteous
to me and providing maximum assistance.

A.LEELA SAI
18HP1E0034
 CONTENTS

CHAPTER PARTICULARS OF TABLE PAGE.NO

INTRODUCTION

1.1 Introduction

1.2 Objectives of the study

CHAPTER - I 1.3 Scope of the study

1.4 Need of the study

1.5 Research Methodology

1.6 Limitations of the study

CHAPTER - II THEORETICAL FRAME WORK

CHAPTER - III INDUSTRY PROFILE

CHAPTER - IV COMPANY PROFILE

CHAPTER - V DATA ANALYSIS AND INTERPRETATION

FINDINGS, SUGGESTIONS AND

CHAPTER - VI
CONCLUSION

BIBLOGRAPHY

APPENDIX QUESTIONNAIRE
 LIST OF TABLES

Table No Table content Page. No.

Table
No.5.1 Representing Satisfaction towards distribution network
Table
No.5.2 Representing satisfaction regarding the demand

Table
No.5.3 Representing satisfaction regarding additional facilities

Table
No.5.4 Representing the way of provision of fridge to the retailer

Table
No.5.5 Representing satisfaction regarding company’s salesmen

Table
No.5.6 Representing satisfaction regarding information provided by
company salesmen

Table
No.5.7 Representing satisfaction regarding profit margin

Table
No.5.8 Representing satisfaction regarding the quantity and price

Table
No.5.9 Representing satisfaction regarding visits of company executives

Table
No.5.10 Representing satisfaction regarding the information provided about
the payment mode

Table
No.5.11 Representing satisfaction regarding the company’s marketing team

Table
No.5.12 Representing the rating given by retailers regarding goods received

Table
No.5.13 Representing satisfaction regarding additional services

Table
No.5.14 Representing satisfaction levels regarding retailers support desk

Table
No.5.15 Representing retailers ‘satisfaction regarding receipt of products
 Table
No.5.16 Representing satisfaction regarding timely compensation for the
damaged goods

Table
No.5.17 Representing the retailers who have problems with the company

Table
No.5.18 Representing the satisfaction of retailers with the overall
performance of the company
 CHAPTER-1

INTRODUCTION
1.1 INTRODUCTION TO MARKETING MANAGEMENT:
Marketing Management is a discipline focused on the practical application of marketing
techniques and the management of firm’s marketing resources and the activities for the
purpose of creating a demand for the firm’s products for selling the same.
Traditionally, marketing management was partitioned into 3 silos, namely the 3 Cs,
“Customer analysis”, “company analysis” and “competitor analysis”. Over the years, it has
evolved into an integrative 5Cs: “Customer analysis”, “company analysis”, “Collaborator
analysis ”, “Competitor analysis” and “Analysis of industry context”.

DEFINITION OF MARKETING:-

“The science and art of exploring, creating and delivering value to satisfy the
needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It
defines, measures and quantifies the size of the identified market and the profit potential”
-PHILIP KOTLER
CONCEPTS OF MARKETING:-
The marketing concept is the strategy that firms implement to satisfy the
customers’ needs, increase sales, maximize profit and beat the competition. There are 5
marketing concepts that organization adopt and execute.

5 MARKETING CONCEPTS:-
1) Production Concept:-
The idea of production concept is that, “consumers will favour products
that are available and highly affordable”. This concept is one of the oldest marketing
management orientations that guide sellers.
2) Product Concept:-
The product concept holds that the consumers will favour products that offer
the most quality, performance and innovative features. Marketing strategies are focused on
making continuous product improvements.
3) Selling Concept:-
The selling concept holds the idea that, “consumers will not buy enough of
the firm’s product unless it undertakes a large-scale selling and promotion effort”. Here the
management focuses on creating sales transactions rather than on building long-term,
profitable customer relationships.
4) Marketing Concept:-
The marketing concept holds the idea that “achieving organizational goals
depends on knowing the needs and wants of target markets and delivering the desired
satisfactions better than the competitors do”. Here marketing management takes a “customer
first” approach.
5) Societal Marketing Concept:-
The societal marketing concept holds “marketing strategy should deliver
value to customers in a way that maintains or improves both the consumers’ and society’s
well-being”.
OBJECTIVES OF MARKETING:-
1. Creation of Demand:

The marketing management’s first objective is to create demand through various

means. A conscious attempt is made to find out the preferences and tastes of the consumers.
Goods and services are produced to satisfy the needs of the customers. Demand is also
created by informing the customers the utility of various goods and services.
2. Customer Satisfaction:

The marketing must study the demands of customers before offering them any goods
or services. Selling the goods or services is not that important as the satisfaction of the
customers’ needs. Modern marketing is customer-oriented. It begins and ends with the
customer.
3. Market Share:

Every business aims at increasing its market share, i.e., the ratio of its sales to the
total sales in the economy. For instance, both Pepsi and Coke compete with each other to
increase their market share. For this, they have adopted innovative advertising, innovative
packaging, sales promotion activities, etc.
4. Generation of Profits:

The marketing department is the only department which generates revenue for the
business. Sufficient profits must be earned as a result of sale of want-satisfying products. If
the firm is not earning profits, it will not be able to survive in the market. Moreover, profit
are also needed for the growth and diversification of the firm.
5. Creation of Goodwill and Public Image:

To build up the public image of affirm over a period is another of marketing. The
marketing department provides quality products to customers at reasonable prices and thus
creates its impact on the customers.
The marketing manager attempts to raise the goodwill of the business by initiating
image-building activities such as sales promotion, publicity and advertisement, high quality,
reasonable price, convenient distribution outlets, etc..

MARKETING INFORMATION MANAGEMENT:

Managing marketing information helps you understand your customers’ needs. You can
gather information by reviewing published market research reports, asking your sales team
for feedback or carrying out a survey using a market research firm. You should also monitor
product review sites and social media, such as Facebook and Twitter, where you can find
information on customers’ needs and attitudes towards products.

Distribution

Your distribution strategy determines how and where customers can obtain your products. If
you market products to a small number of business customers, you may deal with them
directly through a sales team. If your business expands to other regions or countries, it may
be more cost effective to deal with customers through local distributors. Companies
 marketing consumer products distribute them through retail outlets or, increasingly, via the
Internet.

Product/Service Management

Marketing provides valuable input to product and service development. Information on

customers’ needs helps to identity the features to incorporate in new products and product
upgrades. Marketing also identifies opportunities to extend a product range or launch existing
products into new sectors.

Pricing

Pricing plays an important role in determining market success and profitability. If you market
products that have many competitors, you may face strong price competition. In that situation, you
must aim to be the lowest-cost supplier so you can set low prices and still remain profitable. You
can overcome low price competition by differentiating your product and offering customers benefits
and value that competitors cannot match.

Promotion

Promotion makes customers and prospects aware of your products and your company. Using
promotional techniques, such as advertising, direct marketing, telemarketing or public relations, you
can communicate product benefits and build preference for your company’s products.

Selling

Marketing and selling are complementary functions. Marketing creates awareness and builds
preference for a product, helping company sales representatives or retail sales staff sell more of a
product. Marketing also supports sales by generating leads for the sales team to follow up.

Financing

Successful marketing provides a regular flow of revenue to pay for business operations.
Marketing programs that strengthen customer loyalty help to secure long-term revenue, while
product development programs open new revenue streams. Financing also plays a role in marketing
success by offering customers alternative methods of payment, such as loans, extended credit terms
or leasing.
INTRODUCTION:-

The report is an earnest endeavour made to understand the present market scenario in
market captured by the KMUV and retailer’s perception about the products of KMUV. It helps to
bring out the potential and loyal retailers so that the company could maintain the market leadership
in the existing business scenario in the dairy products market.

1.2 OBJECTIVES OF THE STUDY:-

 To study the retailers’ perception towards the distribution management of Krishna Milk
Union.
 To understand the retailers’ perception towards the distribution management of Krishna
Milk Union.
 To analyse the satisfaction levels of retailers towards distribution management of Krishna
Milk Union.
 To develop effective solution to the problems faced by retailers/
 It also helps to make improvements in service and quality of products, for their long term
existence in the market and earning profits.

1.3 SCOPE OF THE STUDY:-

The scope of the study is limited to retailers’ satisfaction with reference to KDMPMACU,
Vijayawada. For the study, a sample of 90 retailers were selected and showed them a structured
questionnaire. Information is also collected through interview. The study was conducted only for a
period of 35 days.

1.4 NEED FOR THE STUDY:-

The report helps in understanding the present market situation and the position of the company in
the market. It helps the company to maintain god relations with the potential retailers and it helps in
the long term survival of the company.

1.5 RESEARCH METHODOLOGY:-

Primary data:- Primary data means the original data that has been collected specially for the
purpose in mind. it is the first hand data collected. Primary data can be collected through
questionnaire, interview, observation etc.

In this study, the primary data is collected through a structured questionnaire.

Secondary data:- Secondary data refers to the data that was collected by someone other than the
user. It is the second hand data which is already collected. Common sources of secondary data are
magazines, company websites etc.

Population:-
There are about 3000 retailers who are distributing the products of the company.

Sample framework:-
Selected few retail outlets in Vijayawada according to convenience.

Sample design:-
Selected sample design is convenience sampling under Non-probability sampling method.

Sample size:-
According to the convenience of the researcher, a sample of 90 retailers have been selected
for the present project.

Tools used:-
Simple percentage method is used to analyse the collected data.

1.6 LIMITATIONS OF THE STUDY:-

 The study was conducted in a limited area; hence results could not be applied widely.
 The duration of study is very small. The accuracy is also limited because of very small
sample size.
 The respondents were too busy to give exact answers to all the questions.
 CHAPTER-2

CONCEPTUAL FRAMEWORK
 CONCEPTUAL FRAMEWORK

MEANING OF RETAILER:-

The word retailer had been derived from the French word ‘Retailer’ which means ‘to cut
again’. Hence retailing means to cut in small portions from large lumps of goods. A retailer is the
last middlemen in the distribution channel. He is a link between wholesalers and the customers.

Retailing consists of the sale of gods or merchandise from a fixed location, such as
department store boutique or kiosk, in small or individual lots for direct consumption by the
purchaser.

Types of retail outlets:-

 Supermarkets
 Department stores
 Discount stores
 General merchandise stores
 Warehouse stores
 Variety or dollar stores
 General stores
 Convenience stores

MOTIVATIONAL FACTORS FOR THE RETAILERS:-

1. Trade schemes:-
These are undertaken by the company and it raises the margin by 2%. However this
is the only a short term initiative to push the products of the company.
2. Glow boards:-
The company puts up glow boards at the retailer and pays the major portion of the
cost.
3. Schedule of salesmen:-
They provide the retails with this schedule so the retailers can pre estimate the
quantities of the various products needed.
4. Infrastructure facilities:-
The company facilitates the retailers to buy beautiful stalls by formulating an easy
payment. Program and a commitment to buy back the equipment at a reasonable price when the
value of the equipment has depreciated.

Role of retailers in distribution channel:-

o Retailers have an important place in the distribution channel. As they sell gods to final
consumers, they play an important role in the distribution channel as the last link. In the
absence of retailers, the consumers cannot find necessary goods at a single shop.
o They provide valuable services to producers and wholesalers like information about
customer, risk bearing etc.
o Retailers also provide various services to consumers like supply of variety of goods,
credit facility, home delivery etc.

Satisfaction:-
Satisfaction measures how well a company’s product or services met or exceed the
individual expectations.
Satisfaction results in consumer loyalty and product repurchase.
 How to satisfy a retailer?

A retailer can be satisfied by:

 Providing better goods and services to retailers.
 Proper distribution of goods.
 Provide good profit margin on purchasing of products.
 Provide new schemes, discounts, gifts and offers to retailers.
 Creating brand loyalty through timely delivery of goods and in right amount.
 Timely resolving the problems of retailers regarding credit facilities, sales persons,
information and profit margin.

THE RETAIL MANAGEMENT DECISION PROCESS

The success of a small entrepreneurial retailer or a major retail corporation, in making

these decisions, depends largely on how much it embraces the retailing concept. The
RETAILING CONCEPT is a managerial orientation that focuses a retailer on determining its
target market’s needs and satisfying those needs more effectively and efficiently than its
competitors.
The retailing concept emphasizes that high-performance retailers must be strong
competitors. They can’t achieve high performance by simply satisfying customers’ needs. They
must also keep a close watch to ensure that competitors don’t attract their customers.

UNDERSTANDING THE WORLD OF RETAILING

The first step in the retail management decision process is getting an understanding of
the world of retailing. Retail managers need a good understanding of their environment, especially
their customers and competition, before they can develop and implement effective strategies.
The critical environmental factors in the world of retailing are:

1. The macro environment

2. The micro environment

Ethical standards and legal and public policy are critical macro environment factors
affecting retail decisions. Strategy development and implementation must be consistent with
corporate values, legal opinions and public policies. Federal state and local laws are enacted to
ensure that business activities re consistent with society’s interests. These laws define unfair
competitive practices related to suppliers and customers; regulate advertising, promotion and
pricing practices and restrict store locations.
Retailers rely on ethical standards to guide decision making when confronting
questionable situations not covered by laws. Buyers may have to decide whether to accept a
supplier’s offer of free tickets to a football game. Some retailers have policies that outline correct
behaviour of employees in these situations, but in many situations people must rely on their own
code of ethics.
The introductory section on the world of retailing focuses on the retailer’s micro
environment-the retailer’s competitors and customers.

COMPETITORS
 At first glance, identifying competitors appear easy. A retailer’s primary competitors
are those with the same format. This competition with the same type of retailers is called intra type
competition.

To appeal to a broader group of consumers and provide one-stop shopping, many

retailers are increasing their variety of merchandise. By offering greater variety in one store,
retailers can offer one-stop shopping to satisfy more of the needs of their target market. The
offering of merchandise not typically associated with the store type is called Scrambled
merchandising. Scrambled merchandising increases intertype competition- Competition between
retailers that sell similar merchandise using different formats

Increasing intertype competition has made it harder for retailers to identify and monitor their
competition. In one sense, all retailers compete against each other for the dollars consumers spend
buying gods and services. But the intensity of competition is greatest among retailers located close
together with retail offerings that are viewed as very similar.

 Since convenience of location is important in store choice, a store’s proximity to

competition is a critical factor in identifying competition.
 Management’s point of competition also can differ, depending on the manager’s position
within the retail firm.

CUSTOMERS:

Customer needs are continually changing at an ever increasing rate. Retailers need to
respond to broad demography and lifestyle trends in our society.

To develop and implement an effective strategy, retailers also need to know the information
about why customers shop, how they select a store, and how they select among that store’s
merchandise.

DEVELOPING A RETAIL STRATEGY:-

Retail strategy indicates how the firm plans to focus its resources to accomplish its
objectives. It identifies:

1. Target market towards which the retailer will direct its efforts;
2. The nature of the merchandise and the services the retailer will offer in order to satisfy the
needs and wants of the consumers.

3. How the retailer will build long term advantage over the competitors.

STRATEGIC DECISION AREAS

 The key strategic decision areas involve determining a market strategy, financial
strategy, location strategy, organizational structure and human resource strategy and
information systems strategy. When major environmental changes occur, the current
strategy and the reasoning behind it are re-examined. The retailer then decides what, if
any, strategy changes are needed to take advantage of new opportunities or avoid new
threat in the environment.
 The retailer’s market strategy must be consistent with the firm’s financial objectives.
  A retailer’s organization design and human resource management strategy are
intimately related to its market strategy.
 Retail information and supply chain management systems will offer a significant
opportunity for retailers to gain strategic advantage in the coming decade.

IMPLEMENTING THE RETAIL STRATEGY:

To implement a retail strategy, management develops a retail mix that satisfies the needs of
its target market better than its competitors. The retail mix is the combination of factors retailers use
to satisfy customer’s needs and influence their purchase decisions. Elements in retail mix include:

 The type of merchandise and services offered

 Merchandise pricing
 Advertising and promotional programs
 Store design
 Merchandise display
 Assistance to customers provided by salespeople
 Convenience of the store’s location

If you asked a food manufacturer 20 years ago how they selected an ingredient supplier, they would
have likely said it was based on price, flavour or the supplier location and preference. However, as
government an d industry put a stronger emphasis on food, safety and quality, evaluating and
selecting the right supplier today has become much more critical and complex.

Selecting the right supplier may seem like an onerous process for your supply chain. While having a
more simplistic supplier selection process may be helpful for some smaller supply chains, a more
involved process of selecting the right suppliers can help many food and companies meet or exceed
regulatory standards, drive customer demand and build a strong brand reputation of quality
products.

Quality and safety of our ingredients, products and packaging are paramount to our success at
Abbott Nutrition, so choosing a god supplier is a critical business decision. Consequently, our
supply chain team has identified six steps for choosing the right supplier, as well as several best
practices in the industry.

Reflect back to your last home project. your focus was probably to keep costs low. You may have
used a lower quality, cheaper material to save money, and upon completion, were satisfied with the
result. Unfortunately, overtime, the project did not look as nice as it did at first.

Similarly, if you used the same criteria when selecting ingredients for your manufactured food
products, its possible that the produced food would look when it was first manufactured, but it
may not meat shelf- life expectations. In addition, if you needed to go back to the suppliers for
replacements, they may not have specific material, or in some cases, they may no longer be in
business. At this point, you are probably thinking, ” if I had used higher-quality materials from a
reputable suppliers, by finish product would have met my expectations”.

Selecting the suppliers who can meet your consumers demand for higher quality ingredients may
bring some initial costs, But it will pay off over time through consistent high grade materials.
However, the process to find the ideal supplier is often not easy and requires discipline and hard
work.

1. Identifying a Supplier :
Before selecting your supplier, is important to gather the opinions of stakeholders and
define the criteria for the selection process. This list of stakeholders may include members from
research and development, Purchasing, Marketing, Quality assurance and any other area of your
organization that touches suppliers selection process.
During this time, it is important to identify a few suppliers to assess their capabilities
and compare pricing. The supplier selection team should work with the potential suppliers to
establish specifications. for example: they should explain how the suppliers materials would be used
in your products and within the manu8facture process. Keep in mind that the ultimate goal is a win-
win situation for the supplier and manufacturer, there fore, open and transparent communication is
extremely important.

A key criterion in selecting the right supplier is value. Cost should not be the lone
driver; you should instead look at the total cost of ownership, which looks as a
suppliers-
 Customer service
 Delivery commitments
 Reliability and responsiveness
 Resource savings(hard & soft)

2. Measuring supply performance:

Another important step of the supplier management process is developing an audit and
assessment programme. Best in class supplier programs conduct audits throughout multiple
stages of the manufacturer / supplier relationship you should always conduct an audit before
the contract is signed to confirm that the supplier does not have any significant complaints or
quality systems failures that could affect your ability to produce top quality products.
Another reason to conduct the audit before hand is to understand the suppliers strengths and
weaknesses before the relationship becomes officially.
Even after the contract is signed, you should continue the auditing, basing the frequency of
the audits on the criticality of the suppliers. To determine the frequency, all suppliers should be
categorised into a level of risk or importance. This prioritisation will help you be smarter and
more effective with your resources and place a higher focus on your important, high risk
suppliers, while continuing to monitor second tire supplies.
Beyond an established audit programme, you should continuously monitor an assess each
suppliers performance. You can track positive or sustained strong performances, as well as
negative trends.

3. Gaining supplier feedback:

Another tool you can utilise with suppliers is a self assessment questionnaire. The
suppliers self assessment can be used to identify performance gaps, as well as discover how the
supplier understands they own operations. In addition to audits and assessments, it is also
beneficial to monitor informative metrics that direct value to the business you should discuss
and select in appropriate metrics with suppliers to receive input and understanding of purpose
full measurements. Examples of these metrics include rejected lots, perfect shipments and
documentation errors. The metrics selected should measure the total cost of ownership, as well
as improve performance towards the maximum finished product performance.

4. Achieving Certification:
As your relationship grows stronger, and both parties feel they are receiving
positive performances, The supplier may be able tp achieve a certified status =. This occurs
when you establish a set of selected criteria to be met by your suppliers. Certification must be
obtained with sustained successful performance and can be lost with poor performance or a
negative compliance outcome from an audit.

As the relationship continue to grow, the supplier also will become more integrated into
your manufacturing process.
5.Developinng Partnerships:

Ultimately, the manufacturer supplier relationship is at its best when a strategic partnership is
formed, allowing full knowledge of the source of materials and ensuring high quality.

With a stronger business partnership, a supplier is more likely to;

 Anticipate what is needed from the manufacturer and begin to take the leadership role
in communication
 Notify the manufacturer if problems occur, That limit production availability, or a
quality issue is identified.
This type of partnership allows for an increased understanding and mutual benefits for both
parties. It cultivates stronger commitments and encourages a greater interest in success for the
material and finished goods. This type of relationship is your ultimate goal.

However There are risks associated with forgoing this kind of partnership. Trust in both parties
becomes paramount, and both entities must ensure no potential or real conflict of interest occur.
When both parties become more relation on each other, if there is a breakdown on either side or
the relationship dissolves, there is much more to lose.

6. Ensuring Quality for consumers:

Depending on the number of materials and ingredients needed, developing a supplier quality
management program can be a complex and upfront investment. However, once you choose to
build strong relationships with reliable suppliers, you will have peace of mind, knowing you’re
delivering high quality to your consumer.
The benefits are realized when your satisfied end-users have confidence in the products you
provide.
 CHAPTER 3

INDUSTRY PROFILE
INDUSTRY PROFILE:-

Milk producing animals have ben domesticated for thousands of years. Initially, they were part
of the subsistence farming that nomads engaged in. as the community moved about the country,
their animals accompanied them. Protecting and feeding the animals were a big part of the
symbiotic relationship between the animals and the humans. Slowly, people in agricultural
societies owned dairy animals that they milked for domestic and local (village) consumption, a
typical example of a cottage industry. The animals might serve multiple purposes (for example,
as a draught animal for pulling a plough as a youngster and at the end of its useful life as meat).
In this case the animals were normally milked by hand and the herd size was quite small. This
small cottage industry took the shape of dairy farming.

Dairy farming is a class of agricultural or an animal husbandry enterprise, for long-term

production of milk, usually from dairy cows but also from goats and sheep, which may be
either processed on-site or transported to a dairy factory for processing and eventual retail sale.
Dairy farming has been part of agriculture for thousands of years. Until the late 19 th century,
the milking of the cow was done by hand. The first milking machines were an extension of the
traditional milking pail. With the availability of electric power and suction milking machines,
the production levels increased tremendously. With industrialization and urbanisation, the
supply of milk became a commercial industry, with manufacture of many by products like
cream and butter, skimmed milk, casein, cheese, whey, yogurt, milk powders etc.

DAIRY INDUSTRY IN INDIA:-

Indian dairy Industry – a profile

The dairy industry in India made rapid progress, particularly during the last two
decades. Today, India occupies first position in milk production in the world, surpassing the
U.S. today, India is ‘The Oyster’ of the global dairy industry. It offers opportunities galore to
entrepreneurs worldwide, who wish to capitalize on one of the world’s largest and fastest
growing markets for milk and milk products. A bagful of ‘pearls’ awaits the international dairy
processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the
galloping progress around the world. The liberalization of the Indian economy beacons to
MNC’s and foreign investors alike. The credit definitely goes to operation flood, which has
played a key role in the developing of dairying.
The employment potential of Indian dairy sector is substantial. This sector provides
additional income and generates job opportunities for 180 million farmer families. More than
70% of marginal farmers and labourers maintain dairy animals to supplement their incomes.
In India, there are 10.1 million farmers who are members of 77,000 village dairy co-
operative societies, each of which is affiliated to one of 170 district and regional co-operative
unions, which in turn are a part of state co-operative unions, which in turn are a part of a state
co-operative marketing federation. The co-operative sector has contributed significantly for the
success of white revolution in India. There are more than 97,000 milk co-operative societies in
264 districts.
This sector is growing at the rate of 6.5% per annum. The first large scale and
systematic breakthrough in dairy operation milk producers union was at ANAND (ANAND
MILK UNION LIMITED), Gujarat abbreviated to “AMUL” which in vernacular means
HIGHLY VALUABLE or “BEYOND ALL PRICES”.
 INDIAN DAIRY CORPORATION (IDC):
The INDIAN DAIRY CORPORATION (IDC) was set up under companies act on 13th FEB
1970. It is a government of India under taking. The immediate need to set up IDC was to
handle the “OPERATION FLOOD”. It became manly a financing-cum promotional agency
of central government.

OBJECTIVES:
 To promote dairy industry in the country.
 To assist the state government and other organization including co-operative societies in
the interested in the promotion of dairy industry to meet the requirement of milk & milk
products.
 To provide a package of technical inputs for enhancement of milk production.
 Resettlement of city based cattle in the rural areas.
 To assist in expanding the capacity and operation of existing dairies in big cities and
rural areas.
 To assist development of allied industry required to meet the needs of dairy
development.

DAIRY INDUSTRY IN ANDHRA PRADESH:

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

DAIRY DEVELOPMENT PARTICULARS:

The dairy development in A.P. according to 2008 figures has been presented in the
following table.
Milk products factories 07
District dairies 10
Milk chilling centres 48
Milk collection centres 1400
Village milk producers’ co-operative societies 5200
Milk collection routes 267
Milk producers 57200
Village covered for collection of milk 10000
Milk consumers 650000
Cattle feed plants 6
Women members in unions 5000
Cash paid to milk producers 62 Crores

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

The Krishna District Co-operative Union, VIJAYAWADA.
Sri Vijaya Visakha Co-operative Milk Producers union, Vizag
The Godavari Co-operative Milk Producers Union, RAJAHMUNDRY.
The Guntur District Co-operative union, VADLAMUDI.
The Prakasam District Co-operative union, ONGOLE.
The Nellore Disrtrict Co-operative union, NELLORE.
The Chitoor District Co-operative union, CHITOOR.
The Cuddapah District Co-operative union, PRODDUTUR.
The Kurnool District Co-operative union, KURNOOL.
The Nalgonda District and Co-operative union, HYDERABAD.
Medak District and Co-operation Union, MEDAK.

AP DAIRY DEVELOPMENT COOPERATIVE FEDERATION (APDDCF)

APDDCF was formed in act 1981 to implement operation flood-II program through active
involvement of producers in organizing milk production, procurement, processing & marketing on
‘three tier’ co-operative structure as per the national policy of India.
The three tire system consists of primary dairy is operative societies at village level cooperative
union at district level & federation at the state level.
Planning investment in operation flood-II
Plan – 34.43 Crs
Plan – 247.53 Crs
Plan – 187.00 Crs
Plan – 349.17 Crs
Plan – 1166.00 Crs
Plan – 600.00 Crs
Plan – 1700.00 Crs

MAJOR DAIRY PRODUCTS MANUFACYURERS IN INDIA & THEIR

BRANDS
Company
Brands
Major products
Nestle
Mild foods Ltd
Smithkline beecham ltd
Gujarat cooperative market
Cadbury
Britannia
Hj.Heinz Ltd
Milk-maid, Ceralac Milo, Lactogen & Everyday.
Milk food
Horlicks, Maltova, Viva
Amul
Bournvita
Milk man
Farex, Vitamilk Glactose
Sweetened condensed milk power, Malted food, Milk Powder & Dairy whitener, Ghee & Ice cream.
Ghee & Ice cream
Malted milk food Ghee Butter & Baby milk foods
Butter Ghee & other milk products
Infant milk food malted milk food
Flavoured milk Ghee, Milk powder Biscuits & Ghee, Malted milk food.

ORGANIZATION OF A DAIRY FARM:

There are many activities involved in successful running of a dairy farm. Many one of
these activities is as important as any other for profitable dairy farming coordination of all these
activities in a dairy farm is known as organization of the dairy farm.
MANAGEMENT OF ANIMALS:
These successes of dairy depend upon the good health and wellbeing of the cow and
buffaloes maintained in the dairy and their production. The various aspects to be considered are:
Housing, Feeding, Breeding and Disease control.

MANAGEMENT OF LABOUR:
Labour is becoming costly and scarce and hence organization is becoming more difficult.
The farm should be so planned that it shall be possible to completely manage with family labour.
Hired labour should be minimum and used only for such operations as sowing, harvesting etc.,
permanent labour if employed should be minimum but provided with all facilities like housing and
should well paid and looked after so that they will work wholeheartedly.
Management of equipment small dairies may have less equipment and machinery like
chilling plant pasteurizing plant, tractor trailer harvester and such either agricultural equipment.
These have to be kept in good working condition so that all dairy & agricultural operations will go
on normally and milk may be transported in good condition for marketing.

MANAGEMENT OF MILK AND MILK PRODUCTS:

The profitability of a dairy depends upon the farm in which the milk is disposed of selling
in cities fetches more money than in smaller towns. Milk transported to longer distances may cost
more on transport. There is a chance of spoilage if more time is allowed between milking and sale
unless milk is pasteurized and preserved properly.

RECORD KEEPING:
Record keeping is important in a dairy which will enable us to know that actual position of
the dairy in all aspects to enable us to plan properly record may pertain to all aspects of dairying
viz, feeding, breeding and management. It will enable the farmer to breed the cows in time to give
balanced rations according to mild yield to know the actual production of milk of individual cows,
to know profit and loss in the farm etc.,

OPPORTUNITIES IN DAIRY FARMING:

Dairy is one of the important side businesses of ninety per cent of the agriculturists of our
village. A cattle rearing are an age old practice & almost all the land holding people keep one
agriculture operations.
Dairy enterprise is an effective and labour intensive business, so that the sha