CONTENTS CHAPTER-1

Introduction of the topic Need of the study Scope of the study Limitations of the study

CHAPTER-2
Objectives of the study Research design and Methodology

CHAPTER-3
Industry profile

CHAPTER-4
Company profile

CHAPTER-5
Data analysis and interpretation

CHAPTER-6
Findings and suggestions Questionnaire Bibliography
1

CHAPTER-1

INTRODUCTION OF THE TOPIC

CONSUMERS PERCEPTION
The term consumers perception i.e what consumers think about the product or producer or brand etc. The consumer perception is much more important to the market than their knowledge of objective reality because individuals make decisions and make decisions and take actions based in what they perceive reality. It is important that marketers must understand the whole notion of perception of consumers can its related concepts so that they can more readily determine what influence consumers to buy. Perception is quite personal phenomena. It may be defined as The process by which an individual select, organizes and interprets stimuli into meaningful and coherent pictures.

PERCEPTUAL SELECTION:
Consumers by nature are selective. An individual who is expected to a number of stimuli will perceive only those which satisfy his name. A stimulus is any unit of input to any of the senses.

THERE ARE THREE FACTORS ONWHICH STIMULI GET SELECTED:

1. Nature of the stimulus 2. Expectation and 3. Motives

Nature of stimuli: Marketing stimuli include a no. of variables such as nature of the
product its physical attributes, its package design, brand name etc. Which affect the consumer perception
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Expectations: people usually see what they expect to see usually based on their past
experience.

Motives: Motives or needs perceive the things.

The quality of a product is judged by a consumer on the basis of a variety of informational clues (stimuli that give direction to consumer motive i.e that suggest a specific way to satisfy a salient motive) which are associated with the product. Some of the clues are intrinsic and some of 6the cues are extrinsic intrinsic cues are physical characteristics of the product itself such as size, shape, color, flavor, aroma etc. Extrinsic cues are price quality relationship store image, manufactures image. A mix of those cues provides the basic for perceptions concerning product quality.

Price quality relationship:

Consumers generally perceive the quality of the product basis on process. They consider price as an indicator of product quality.

Manufacturer

s image:

The another extrinsic factor that help in perceiving the quality of the products is the manufacturer image of the manufacture is high in the minds of the consumers. The quality of the manufactures will be perceived high. Similarly, the sangam milk factor also gained reputed manufactures image with its quality maintainance.

Brand loyalty and brand image:

Brand loyalty for the old customers of sangam dairy and brand image of sangam dairy favors the company to holds a strong consistent position in the market. Taking into consideration the above concept the marketing survey is done in taking into account and concentrating on the product attributes such as

Price quality relationship Income wise preference Brand image Advertising

The survey was mainly concentrated on consumers perception towards the various milk suppliers. The way of perceiving while selecting the specific milk supplier.

NEED OF THE STUDY:

Now a days consumer is paying a vital role in the success of any organization. So it is necessary for any organization to identify how consumers perceive about their products.

This study concentrates on identifying the problems that the consumers are facing. It also gathered consumers opinion regarding service oh the retailer, availability and delivery of milk.

AS it is competitive industry this study emphasizes on identifying the reasons of consumers who are purchasing unbranded milk also.

SCOPE OF THE STUDY:

This study is aimed at understanding how consumers perceive about SANGAM DAIRY

This scope of the study is confined to SANGAM DAIRY milk. The various parameters of the study are period of purchasing service of the retailer, availability and delivery of milk and impact of ISO certification at the time of purchasing.

The survey was conducted with sample size of 100 consumers in GUNTUR and TENALI. The project will go a long way in identifying the gray area and address the same in right manner. This study can be of the same consequences to the future research also in the sense that they take this study a basis for future conducting studies in the related area.

LIMITATIONS OF THE STUIDY:

As the study on a survey of consumer, there is possibility that consumers might not give the right information due to like lack of interest.

The sample size of 100 may are not present the accurate pictures.

Paucity of time is another constraint.

The survey is confined to GUNTUR and TENALI only.

CHAPTER-2

OBJECTIVES OF THE STUDY:

To find out the consumers who are purchasing SANGAM DAIRY milk from more than 5 years.

To find out market share of toned milk against cream milk.

To find out the convenient time for consumers to purchase milk.

To find out major purpose of using SANGAM DAIRY milk.

To find out the reasons for using unbranded milk a long with SANGAM DAIRY milk.

To find out the impact of ISO certification at the time of purchasing milk.

TO find out the type of advertisement that the consumers come across frequently.

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REASERH DESIGN AND METHODOLOGY:

Methodology is the procedure applied to gather the information required for the stud. Collection of the data refers to purposive gathering of information, relevant to subject matter under the study and the method used depends mainly on the nature.

Accordingly, the data collection can be grouped in or two types I.e. primary and secondary. Primary data is the original observations collected by the researcher or his agents for the first time and used y them in their investigation. Once primary data is used it ceases to be primary data and becomes secondary data.

11

PRIMARY DATA

The source of primary data includes direct personal investigation interview, indirect oral investigation, information received through customers, drafting a schedule, drafting a questionnaire. Information with respect to the products, service of the retailer, mode of distribution, availability of milk was gathered from the primary data. The primary data in the present study was obtained by questionnaire.

A survey wads conducted on the consumer perception or SANGAM DAIRY. Information in the survey is being collected from the consumers in GUNTUR and TENALI areas.

QUESTIONAIRE
Primary data is being collected from the agents through questionnaire. It is the most common instrument in collection of primary data. Questions are both open ended and close ended. Questions were simple and easy to understand. The number of questions was limited and not repeated.

The questi0ons in the questionnaire were arranged in logical sequence. The questions were all related to the topic, the questionnaire is prepared in such way to get much information about the consumer perception. The survey conducted on random basis.

12

SECONDARY DATA

Sources of secondary data can be cauterized in broad categories namely published statistics and unpublished statistics. Various sources are available central and state government publication, foreign government publications, technical and trade journal, books magazines, news papers, business and industry publications, statistical reports etc. Unpublished statistics include information in diaries, letters biographies, scholars, research work trade association etc.

In internal sources a business organization has to maintain records of financial accounting, sales records, reports of salesmen, etc. The marketing manager and other staff of the company assisted in providing the needful information. Information regarding Indian Milk industry and A.P.Milk industry was gathered from the secondary sources like internet.

STEPS IN MARKET SURVEY PLANNING THE SURVEY

Problem definition Selection of the methodology Questionnaire development

FIELD WORK
Interviewing or collection of data

ANALYSIS AND INTERPRETATION POF DATA

Editing Tabulating, processing and interpreting data. Statistical analysis and interpretation

REPORT MAKING
Summarizing, finding and suggestions. Report writing 13

SAMPLE SIZE

The total sample size of 100 respondents in chosen for the study in order to gather their opinions nd perceptions. The consumers are chosen on convenient sampling method. All of them are purchasing SANGAM DAIREY milk.

Communications and observations were the two basic means of obtaining the data. The interaction between the researcher and the respondent is a social process.

14

CHAPTER-3

15

INDUSTRY PROFILE

BRIEF HISTORY:-

Under the operation flood 1 problem, Guntur district was selected to develop dairy activities on annual patterns keeping in view the three tier system of village dairy cooperative society at the village level, managed by the elected representatives of milk producers, a co operative union ltd ., was registered after A.P. co-operative societies act 1964 with registration No;83DD dated 01-02-1997 with 81 affiliated milk producers cooperative society act 1995 with a registration number AMC/GNT/DCI/97/28 DT 1/02/1997.it is the first registered under model act in India.

INDIAN DAIRY INDUSTRY:-

Dairy place were handling of milk products is done and technology refers to the application of scientific knowledge for practical purposes dairy technology has been defined as that of branch of dairy science which deals with processing of milk and manufacturing of milk products on an industrial scale. India with a vast population has great problem to provide every citizen with adequate food, both India terms of quality and quantity a large no of people depend on milk 8 its products as are most important source nourishments thus during promises to be utile significant occupation of the formers. Besides organized dairying also creates substantial employment opportunities diary industry only provides additional employment but reduces the burden of population as agricultural products keeping this India view, it is necessary to develop diary very fast for overcoming the problem of income employment 8 nutrition India the country.

16

In developed dairying countries such as the USA the year 1850 is seen as the diving line between farm and factory scale production various factors contributed to this change in the countries, viz. concentrated of population in cities where jobs plentiful, rapid

industrialization. Improvement of transportation facilities, development of machines, etc. whereas the rural. Areas were identified for milk products, the urban centers we selected for the location milk processing plants and product manufacturing factories were expanded and modernized with improved machinery equipment to ensure the various advantages of large scale production nearly all the milk U.S.A before 1900 was delivered raw. Once pasteurization was introduced. It developed rapidly mechanical refrigeration helped in the rapid development of the factory system of market milk distribution.

In India dairying has been practiced as a rural cottage industry since the remote part semi commercial dairying started with the establishment of military dairy farms and c ooperative milk unions throughout the country towards the end of nineteenth century.

During the earlier years each household in these countries maintain it family cow or secured milk from its neighbor who supplied those living by as the urban population increased fewer households would keep a cow for private use the high cost of production. Problems of sanitation etc. Restricted the practice and gradually family cow was culminated of the city cattle were all sent back to the rural areas.

Gradually farmers within easy driving distance began delivering milk over regular routs in the cities this was the beginning of the fluid milk sheds which surrounded the large cities of today, prior to the 1850s most of the milk was necessarily produced within a short distance of the place of the place of lack of suitable means of transportation and refrigeration,

17

Indian dairy industry has made a rapid program since independence a large number of modern milk plants and products factories have since been established. These organized dairies have been successfully engaged in the routine commercial production with the modern knowledge, the protection of milk during transportation. It becomes possible to locate dairies where land was less expensive and crops could be grown more economically. In India the market milk technology may to have commenced in 1950, with the functioning of central dairy of area milk colony and milk products technology in 1956 with establishment of AMUL dairy Anand. The industry is still in its infancy and barely 10% of our milk production undergoes organized handling.

THE CO-OPERATIVE STRUCTURE:-

The Anand model of co-operative structure builds on a vertically integrated single industry co-operative that links rural producers with urban instruments by including enhancive milk production system and improved technology for processing and marketing.

The Anand model of co-operative structure was three tired. The structure is as follows:1. The village milk producers co-operative society. 2. The district milk producers co-operative union. 3. Various district unions which together form a co-operative milk marketing federation.

18

ESTABLISHMENT OF ANAND TYPE CO-OPERATIVE IN INDIA:-

In 1964.the Prime Minister LALBAHADUR SASTRY visited Gujarat during that visit he was impressed with village milk co-operative societies and requested Mr. Varghese Kurein. The general, manager of Anand milk union (AMUL) to extend the Anand type milk.

Co-operative to other o other parts of the country the prime minister wrote letters to chief minister of all states government advising to take the initiative to setup Anand type milk producers co-operative societies in their respective states.

The initiative led to the creation of national dairy development board (NDDB)in 1965 and taken its sister organization the Indian dairy co-operation (IDC)in 1970 with the intention of implementing operation flood, whi9ch is essentially aimed at setting up of Anand type dairy co-operative flood-1was the extension if the Anand pattern milk cooperative in the rural hinter lands.

The national dairy development board and the Indian dairy co-operative drew up plans under operation flood with the air of establishing the dairy industry in the operation in 1970 and covered eighteen milk sheds which comprised the rural hinter lands of the metropolitan cities

Financial assistance from the World Bank helped NDBB and IDC to establish dairy industry in the Karnataka, Madhya Pradesh and Rajasthan. having hinter lands of the metropolitan cities.

19

OPERATION FLOOD:-

Aimed at setting up a model dairy to meet Indians rapidly need for milk and products, the project operation flood was conceived and formulated by the national dairy development board during the 4th plan period the project was initiated in 1970, the project initially scheduled for a period of 5years was subsequently extended twice of 11 years the project operation flood was terminated in 1981. Based on operational validity of the Anand pattern NDDB had received and formulated the project.

The main aim if the project was to create a flood of rurally produced milk assuring the farmers remunerative price and ready market and the urban consumer of whole some milk at stable and reasonable prices by consuming centers in urban areas. link the main milk producing areas to main

NATIONAL GRID:-

National milk grid has been set up to transport liquid milk for surplus to deficit areas with the help of 976 roads and rail milk tankers having a capacity of 13.3 million liters a day national milk grid today linked by million rural products in 59 milk shed to 126 urban centers providing them a national grid, which aims to even out seasonal fluctuations in production and price.

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DAIRY INDUSTRY IN ANDHRA PRADESH:-

The program of dairy industry was initially with commendable help of the United Nations international childrens emergency funds the freedom from the hunger campaign of U.K these organizations contributed a lot in the establishment of the dairy units in Andhra Pradesh during the period 1967-1968.

Agriculture is the primary occupation of Andhra Pradesh. The total occupation of Andhra Pradesh is reported to be around 9.5 cores as per 1999. Above 70% to 80% of people in the state is living in the country side.

The milk producers have been faced with a lot of problems in the process of production and marketing milk namely improper transport facilities poor technology observes of organized system of processing marketing and pricing at the context that government of Andhra Pradesh had viewed to constitute a dairy development corporation to safe guard the interest of milk produces and ensuring adequate supply of fresh milk at the reasonable price of urban consumers. As a result the APDDC came in existence on 2 nd April, 1974.

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CO-OPERATIVE FEDERATION:-

To implement operation flood II through active involvement of producers in organizing milk production, procurement processing and marketing on three tire cooperative as per the national policy of Government of India, Andhra Pradesh dairy development co-operative federation was constituted in October 1981.

The three tier system includes primary village level dairy co-operative societies, cooperative unions at the district milk shed level and a stage level federation.

For dairy development program in Andhra Pradesh the Indian dairy Co-operative offered financial assistance of 78.51 cores with 30% of grand and 70% on lone basis. Sixteen districts out of 23 districts in the state were identified by National Dairy Development Board for implementation of Operation flood-II program.

With implementation of operation flood-II program in Andhra Pradesh, Dairy Development has gained momentum providing a trust to Eradicate the poverty and unemployment in rural areas and brought greater through dairy co-operative of Anand Pattern. The dairy development in Andhra Pradesh is presented in the following table.

The promise for Indias dairy development lies in recognizing the need for substantial increase in production of liquid milk. Presently milk products fetch relatively higher price than liquid milk and this has directly boosted. The output of value added products. Further the indigenous milk production enjoy higher demand and better prices than western products such as tangle butter cheese, ice cream, milk powder. However the importance of Liquid milk and its influence on the market can be under played since it meets and basic

22

need of late particularly since 1985 the liquid milk has witnessed and upswing in price of development of any activity a rational pricing policy is vital. This is more in case of daring where a positive price policy acts as a Catalyst for growth by motivating the farmers to segment milk production live their four key determining factors are the price farmers should receive for milk. The profitability of comparison, non-firm enterprise, the input cost milk Production and prices consumption response of market.

GROWTH OF THE INDUSTRY:-

Before the Independence of India, India the first half of the 20 th century dairying India the country was largely unorganized milk &its products were generally not easily marketable commodities and there were no transport these products to far distances organized, as was understood India the first India a small way when military dairy fames &this was established towards the end of 19th century to met the 5% demand of the force & their hospitals, some dairies have been encouraged to make pasteurized butter, primary for the use of British army. As a result he imperial instate animal has boundary dairy was established India 1923 at Bangalore, there has been another major effort in the early 1940s were milk is produced. In India rural areas and district, was collected in bulk of paste erased &transport by distributing Bombay by the Bombay milk scheme operated by the Bombay municipality when India become independent in 1947, are of the major milk scheme (GBMSW).

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PRESENT STAGE OF INDUSTRY:During the past four decades the dairy industry in India has undergone revolutionary changes in its structure. now India is the first large milk producer in the world the methods of collection and marketing and utilization of milk for manufacturing products have been considerably improved although from hygiene point of milk production India rural areas continue to be an satisfaction milk product country more than doubled since the efficient of planning in 1951. although it has raised from 17.4 million tones India to 40.2 million tons India 1984-85 after stanfnating at a level of 17.20 tones for 1940 and 1970 India faces shortages to met the nutritional requirements of the proportional increase in India milk production in relation to population growth marketing schemes were involved and development in India in some of the major cities in the initial stage.

HISTORY OF INDIA MARKET MILK INDUSTRY:1. Beginning in organized milk handling was made in India with establishment of military

dairy forms.
2. Handling if milk in co-operative milk unions established all over the country on a small

scale in the early stages.

3. Long distance refrigerated rail transport of milk from Anand to Bombay since 1945. 4. Pasteuribution and bottling of milk on a large for organized distribution was started at

Arey (1950), Calcutta (haringhata, 1959), Worli (1961), Madras (1963), etc.
5.Establishment of milk plants under the five year plants for dairy development allover India

there were taken up with duel object of increasing the national level of milk consumptionand ensuring better returns to the primary milk producers their main aim was to produce more better and cheaper milk.

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DAIRY INDUSTRY:-

Dairy industry is the industry which fiber gates the milk production in to by products and served for different customer located at different places with netter quality and which is new to mankind it is as old as him although it has been recognized as an industry from 18 th century onwards.

The dairy industry in going through major changes with the liberalizations policies of the government and the restructuring of the economy this has brought greater participation on the private sector this is also consistent with global trends which could hopefully lead greater integration of India dairying with the world market milk products.

After stagnating of 20 millions tones for 20 years between 1950 to 1979 Indias milk production being to raise crossing 30 million tons in 1980 and 59 million tons in 1992 today India ranks as the world second largest milk producers after the U.S (72 million tons)

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WORLD FOCUS ON INDIAN DAIRY:-

Indian dairy is emerging as sun raise industry India represent one of the worth largest and fastest growing market for milk and products due to the increasing disposable income among the 250 million strong classes.

There are two main for the world focus on India one the low cost economy and two liberalization process initiated since 1991. Other important factor including low inflation rates expensive labor the presence of the worlds largest third pool off.

DAIRY DEVELOPMENT UNDER 5 YEARS PLAN:-

Dairy development in India after the independence under industrialization & public awakening recess the establishment of organized collection processing and distribution of mile to the reads of expanding urban areas.

The planned development of dairying was actually taken up by India as the first national 5 years plan (1951-56) and the inadequately of suitable market structure was noticed as factor for milk production this expressed itself India a remote rural area where, a went of quick transport and marketing facilities, milk was marked India the converted to ghee, which did not provide sufficient income to solve the problem.

The India dairy corporation (dc) was established India 1970 as a specialized institution to promote a finance dairy development in India the function include financing co-operative dairy development in India and promoting expanding of milk processing and marketing facilities.
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PAST TRENDS:In olden days there were no proper means for transporting the milk from one place to another place and the milk used to lose its quality while transporting it from milk chilling centers. And there was no critical relation between dairy people and the milk producers there was only one way communication.

In olden days there was no proper equipments for testing of fat content and SNF testing i.e., solid hot fat.

PRESENT TRENDS:There has developed a cordial relationship between the milk producers and the dairy people now a day the dairy are providing loans for buying milk producing animals and giving subsidies for cattle feed and the means of transport has been increased to a longer extent which has the better storage capacity of milk for longer period streams of now bay-products have been introduces in the resent days.

FUTURE TRENDS:It is estimated that future of the dairy industry would be bright looking the growing pattern on milk production and increase in the number of milk production. And it is expected that the technology will stand at its best position to serve different customers in many different ways.

PROBLEMS OF THE DAIRY SUB SECTOR:A review of the present state of sub sector reveals that during the last two decades a wide net work of cooperatives has been created in the dairy sub-sector of India economy this has been advances in dairy technology however the dairy sub-sector of our economy appears to be in the grip of few basic problems that have perennially. Following are some of the basic problems of the sub sector which require immediate attention of the planners and administrators of dairy development it seems desirable to resolve their problems so as to develop the dairy sub sector on a sound feeding.
27

1) Low productivity: - Majority of the milk animals in India have poor yield low level of
productivity has resulted in low per capital availability milk unprofitable dairy enterprise high price of milk products and negligible by the relativity poor people .

2) Problems of cattle feed and fodder: - The dairy sub sector in India faces a strangely
paradoxical situation. On the one hand, it is facing diminishing returns to more intensive use of animal feeds. Al\though the scientific feeding rates maximum milk production they do not maximize the farmers return from milk production. Therefore, they are unlikely to be used by the farmer for feeding his milk animals. He feeds his animals at such rates, which would maximize his financial returns on milk production. Unless feeding is improved, no lasting improvement can be brought out by selective breeding or exotic cross breeding.

3) Poor Breeding:-

within the constraints imposed by the supply of cattle feeding and

fodders the only way to enhance the milk production to meet the growing demand of milk production is to fully exploit and improve the genetic potential of our milk animals. There is a need for a suitable breeding policy which would enhance milk production without adversely affecting the draught power requirement of the Rural Economy and total food supply for human consumption.

4) Milk production through wreakers section:- The present growth strategy of the
dairy sub sector envisages that at least on third of the producers in the project areas must be drawn from the groups of small farmers and at ;east another one third from marginal farmers and agricultural laborers the quality of their animals is poor their fodder resources are limited; hence their dairy enterprise suffers from a severe setback under the drought situation their animals have a face problem of drinking water and poor shelter too these are the major constrains to a study growth of the dairy sub-sector through higher involvement of the weaker section in rural areas to achieve these objectives the policies and problems affecting growth the dairy sub-sector must provide solution to the problem related with milk production through weaker sections in rural areas.

28

1).Problems of milk marketing: - It is a great necessity that production must reach the
consumer at a reasonable price the traditional system of milk collection and marketing can be characterized by exorbitant rates and rampart adulteration there is a wide gap between the collection of milk in flush and lean seasons it adversely affects the economic liability of dairy plants as well as the collection and marketing channels adulteration is the other problem of urban milk marketing in India.

2).Other problems:- A balanced and study growth of the dairy sub-sector also depends
on the infrastructure in the country side the infrastructure also includes research establishment in to supply channels credit institutions extension organization and marketing outlets an effective growth strategy must work for the establishment of these ingredients of the infrastructure. There are basic problems to be considered while planning the growth of the subsector for their solution is imperative for improving the incomes of milk producers nutritional standard of costumers and for running the plants at viability levels such solutions are relevant at national as well as at the regional levels growth strategy for the development of the dairy sub-sector in a sector in a particular region would have to evolve proper solutions to these problems.

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CHAPTER-4

30

COMPANY PROFILE

Milk and milk products are the most important food items in promotion the health of children are elders it is well known as the whole some food prior to 1970 the entire population in Guntur district used to depend on vendors of milk since the vendors were monopolies they win an intention of marketing profits adulterated the milk extracted the cream out it.

Sell the milk at favorable prices to them they used to sell the milk of inferior quality are unreasonable price which failed to serve the very purpose soothe government with a view to protect health and to supply good quality of milk at reasonable price set up dairies at some important places and Sangam dairy is one of them.

Under the operation flood -1 programmed Guntur district was selected to develop dairy activities on Amul pattern keeping in view the three tier system of village dairy cooperation (V.D.C) societies the district milk producers co-operative and co-operative federation at state level which is an apex body.

31

SANGAM DAIRY ORGANISATIONAL CHART

BOARD OF DIRETORS

CHAIRMEN

GENERAL MANEGER

SENIOR MANAGER

SECTIONALACCOUNTING MANAGER MANAGER

PRODUCTION MANAGER

DAIRY MANAGER

SUPERRS

WORKERS

SKILLED WORKERS

UNSKILLED WORKERS

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NO MEN CULTURE OF THE SUNGAM DAIRY:-

The name of the Sangam dairy is due to the presence of Sangameswara Temple at the village Sangam Jagarlamudi near vicinity of the dairy the dairy is located between Guntur Tenali high way about 15 kms from Guntur and 10 kms from Tenali having a very good architectural view attracting the visitors.

ANAND PATTERN:
The Anand pattern an integrated approach to the dairy development under cooperative sector by providing remunerate process and creating assured market to the farmers produce and also safeguards the markets of sale produce by providing necessary technical inputs for the rapid progress of dairy industry in this pattern the real investment of producers are seen where the village dairy co-operative as well as district union are managed by producers themselves the producers have got a say in determining the price of commodity they produce this is really a fantastic approach.

33

OPERATION FLOOD PROGRAMME: OPERATION FLOOD-1

1) Dairy plant handling capacity of 1.5 lakes liters of milk per day besides facilities to manufacture 12 liters of skim milk powder 8 tons of butter 2 tons of ghee and casein from sour milk was established with a cost of Rs. 2.88 crores.

2) Facilitation to Providing technical facilities like free veterinary aid cattle insurance and artificial insemination fodder development and cattle feed on no profit no loss basis was created with an expenditure of Rs. 12 crores.

OPERATION FLOOD-II
Under operation flood II the dairy processing capacity had been increased from 1.5 to 2.5
lacks liters per day with an expenditure of 36 crores.

OPERATION FLOOD-III
Rs 2.5 crores was allocated to this milk shed for expansion improvements in dairy plant chilling centers and technical input activities. All the above finance is 70% loan and 30% grant in addition to this our government gave an amount of Rs 81 lacks towards the construction of quarters, technical inputs building which is treated as share capital of the government. The total value of assets of this dairy as on today is 21.6 crors.

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3) FODDER DEVELOPMENT PROGRAMME: The union has raised in its campus nearly
15 acres of perennial crops like Para, hay, Napier, co-2 the union supplies certain varieties of fodder seeds to the milk producers at 30% subsidy.

4) FODDER SEED MULTIPLICATION PROGRAMME:

The union has taken up seed multiplication for past 7 years by supplying good varieties of seed to the producers rising in farmer.

5) SILVIPASTURE SCHEME:
Under kissan van this has taken up growing in farmers fields

6) DISTRIBUTION OF CHAFF CUTTERS:

The union purchased 140 chaff cutters from Ludhiana and supplied to the milk producers with 59% subsidy for better utilization of grass fodder.

7) ENRICHMENT OF PADDY STRAW WITH UREA:

The union provides necessary infrastructure and area required for the program on free of cost to the producers.

8) CATTLE FEED:
The cattle a feed plant with an installed capacity of 100 Lts per day was constructed by N.D.D.B the feed produced by semi automatic pre weighing with a provision of mechanical devices to separate and take the uneven and unwanted harmful particles.

9) BY-PASS PROTEIN FOOD:

The union is providing a special feed called by-pass protein feed this union is only union by-pass protein fee in Andhra Pradesh by-pass aseptic milk packing station was
35

established initially during the year 1986 and estimated cost of Rs. 2.5 crores the station equipped to pack milk in packs with 15 days shelf life earlier has been replaced with machinery to pack with 3 months shelf life the exiting capacity is 50.000 it today after
overcome the minimal set back with regards to.

Market identification now the product is making a smooth sailing in the cities of Hyderabad, Vizag and Calcutta besides the tetra pack milk has been popularized in the milk deficit coal belt area of Bhadhrachalam, Khammam and Kothagudem etc., there are plans for the further market expansion in Calcutta and Bangalore cities. Aseptic station not only suitable to pack milk but also pack novelty products like sterilized cream double milk high fat and high solids not fat depending up on the need of the consumers. Trails are under process for the introduction of these new products the given table gives brief details of the milk packed in 500 ml packs from 2000-2007 year wise (in lacks packets).

PACKAGING:Milk the product is packed in different size according to the weight.

Table butter: - 10g, 100gm, 200gm, and 500gm pack aluminum foil.

While butter: - 70 kg carbons oil proof papers.

Ghee: - kg &1 kg aluminum foils &15 kg ting.

Whole milk powder: - 1 kg polythene covers 25 kg bags Hussein laminated Craft

paper with polythene covers inner side.
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Doodh peda: - Each bring 25 kg packed in oil proof paper. Lassie: - 200 ml sachets. Flavored milk: - 180 bottles.

Flavored milk: - liters sachets polythene cover aluminum foils packing pack the self is
60 days.

Existing capacities:-

01. Milk handling capacity 2.5 lacks liters per day

02. Milk powder capacity (tow powder plants l &2 make and stain co 22 M Ts per day

03. Table butter (4packing machine/CBMM And butter chaplets machine) 8 M Ts per day

04. Ghee 10mt M Ts per day

05. Storage of butter in deep freeze 700 M Ts per day

06. Boiler selection 2 oil fires boilers 2 coil fixed

07. Refrigeration 350 M Ts 37

08. Milk chilling centers

(a)

M.C.C

Narasaraopeta

50.000lpd (liters per day)

(b)

M.C.C

Gurazala

30.000 LPD

(c)

M.C.C

Vinukonda

30.000 LPD

(d)

M.C.C

Battiprolu

30.000 LPD

The union has also started construction works for another two chilling centers each at Vinukonda and Battiprolu.

09. Cattle feed

100 M Ts per day

10. Aseptic feed

50.000 M Ts per day

11. Powder

(a) For machinery

2746hp+131kw

(b) For lighting

122kw

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Sangam dairy aims & objectives:-

Sangam reaffirms new millennium.

1)To enhance the present procurement to 4.0 lacks liters/day in the next 5 years. 2)To enhance the liquid milk market to 1.5 lacks liters/ days in the next 5 years 3)To enhance the business turnover to 250 Crores by 2005 4)Increasing milk production enhancement activities inducing cross breading cow and up

gradation of buffaloes
5)Uphold co-op principles and be a model co-operative principles are a model co-op for

others.

Sangam-a saga of success:-

It is true say that milk is the nourishes our life and it was the elixir that brought forth significant changes India the lives of people of Guntur district Guntur is the first one selected in the state under operation flood program among the 18 districts in the country which changed the way people looked at life in rural India.

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Sangam-at instrument of socio and economic change in group:-

The evolution of GDMPCU ltd. Started with the generous donation of milk producer of Krishna, Guntur and west Godavary district for the purpose of 34.46 acres of land at a cost of Rs. 1.5 lakhs during 1973-74 the G.D.M.P.C.U ltd was registered under the AP co-op societies act 1964 on 23-2-1977 and the management of dairy was handed over to the elected representatives of the union on 1-08-1978 with two milk chilling centers at Narasaraopet and Gurazala by the A.P.D.D.C. ltd.

Milk producers co-operative societies were established in the village facilitating people to mobilize themselves and interact productively this the voyage of Sangam dairy started with 81 co-operative societies and now it has 544 members societies and 432 collecting centers in the district the GDMPCU ltd has also entered in a challenging task of cooperative societies act 1995 and got registered on 01-02-1997 under the name of Guntur district milk producers mutually aided co-op union ltd in 1997 the union established a new chilling center at Battiprolu and another at Vinukonda in 1998. The union now procuring 2.57 lack liters per day on an average and a highest of 2.57 lacks. Items during flush and producing milk product like table butter white better salted butter cooking butter skim milk powder whole milk powder toned milk whole milk and standardized all he urban areas of the district and other states of the country Though its renewed brand Sangam the union expanded its processing capacity from 1.0 lakh liters to 2.5 lakh during operation flood ii and stated aseptic packaging station India the dairy premises and cattle feed plant India the Vadlamudi. The union started its own marketing in the important towns like Hyderabad, Vijayawada, Tirupathi, and Chennai, besides supplying milk to distant places, like Nagapur, Kolhapur, Pune.

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Sangam At the Farmers services:-

Animal vaccines at subsidy rates. Fodder seeds. Sitvia pasture scheme. Distribution of chaff cutters. Enrichment of paddy straw with urea. Distribution of cattle feed on subsidy rates. Supply of bypass protein feed. Distribution of mineral mixture. Cattle insurance on 2/3 subsidy. Aid to society building. Distribution of cross breed cows and heifers. Training programs to all farmers and paid secretaries. Formers inducing program through CD program accident insuring to all member products.

Sangam facts & figures that speak:-

Sangam is strength of 1.33 lacks member product & producers around 665 lacks liters per annum.
Sangam pumps around Rs.200 lacks in to the rural economy every 10 days towards

payment to the milk producers. Sangam co-operative have been Arpad over and interwoven with 643 villages of Guntur dist.

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Cream rich Sangam milk and toned milk is sold 1 8 towns in Guntur district and Sangam is the brand leader. Guntur dist. Sangam milk is also in Hyderabad and Madras. Chaff cutters were being giving to producers at 25% cost. The area of operation flood under programmed has been identified into 9 milk sheds union as presented in annexure -1,

S.NO

District

Milk Sheds / Union

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Srikakulam Vijayanagaram Visakhapatnam East Godavari West Godavari Krishna Guntur Prakasam Chittor Kurnool Nalgonda Ranga Reddy Medak Nizamabad

Visakha Visakha Visakha Godavari Godavari Krishna Guntur Prakasam Chittor Kurnool Nalgonda Ranga Reddy Medak Nizamabad

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FINANCIAL POSITION:-

The dairy has earned a turnover of Rs. 64.48 cores in 1996-97 and Rs. 73 cores in 1977-98 the turnover for the year 1998-99 was Rs. 85.10 cores. The turnover for 1999-2000 was Rs. 104.83 cores. The turnover for 2000-2001 was Rs. 109.3. The turnover for 20012002. Was Rs.119.13 cores. The turnover for 2004-2005. Were 1103.25 cores the turnover for 2005-2006 was Rs. 120.13 cores the turnover for 2006-2007 was Rs. 125.51 cores the dairy is proposing to increase its share capital of Rs.5 cores on hand to meet the financial exigencies? A notable feature is that Sangam dairy has not drawn the Rs. 5. Cores overdraft facilitated by the G.D co-operative central bank for the last year.

As a result the new co-operative societies act. The commission of Rs. 50 lakh payable to the APDDCF for marketing of the products could be saved.

The interest free lone Rs. 1.77 cores from the NDDB has enabled Sangam dairy to return the state government equity of Rs. 81 lacks and loan of Rs. 96 lacks.

The dairy gives 30 np to milk producers for every kg of milk they supply of the 30ps. 15ps is given as cash.

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NEW INTERVENTIONS:-

Marketing of Sangam milk in Hyderabad (in June 1997) and Chennai (September 1999) currently around 25000 its per day in being sold in Hyderabad 28000 its in Chennai and 9000 lts per day in Tirupathi.

Marketing of mango drink (1 liter and 200 ml) and Vijaya Sangam mineral water. Curds in 200gms poly pouches and 125 ml cups and Kalakhanda 250 gms plastic boxes. Entire quantity of skim milk powder manufactured (approx 1200mt) being sold only in retail 1 kg packs. Sangam ghee in poly (1 liter and 200 ml) launched in November 2000. We are supplying cattle feed to meet the requirement of producers at Rs. 5.50 per kg.

Hybrid fodder seeds vaccines at subsidized prices to farmers. Chaff cutters were being given to produces at 25% cost. Insurance coverage (J.P.A) for 1.00.000 member milk producers for an amount of Rs. 50.000. Subsidy for purchase of animals from Haryana is to the tune of Rs. 2500 per animal. Animal insurance 12. building subsidy for societies to an extent of Rs. 20.000/An amount of Rs. 5,000. Per head for natural death coverage all milk producers as per the milk procurement guide lines.

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CHAPTER-5

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1). Statement showing "which milk would you use?"

SRE.NO 1 2

USAG Dairy packet milk Milk vendor

PERSENTAGE 68 32

Dairy packet milk

Milk vendor

The above table depicts that 68% of the respondents are using dairy packet milk, where as 32% of the respondents milk vendor milk.

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2) Statement showing that "which dairy milk packet would you use?"

SR.NO 1 2 3 4 5

DAIRY PACKET MILK Sangam Thirumala Heritage Reliance Others

PERSENTAGE 40 20 15 12 12

Sangam

Thirumala

Heritage

Reliance

Others

The above table depicts that 40% of the respondents are using Sangam milk, where as 20% of the respondents are using Thirumala milk, 15% of the respondents are using Heritage milk, 12% of the responds are using Reliancemilk, and 12% of the respondents are using other Dairy milk.
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3) statement showing "How much quantity of milk do you consume daily?"

QUANTITY SR.NO 1 2 3 4 CONSUMED 200 ml 500 ml 1-2lt More than 2lt PERSENTAGE 1 42 52 5

200 ml

500 ml

1-2 lt

More than 2lt

The above pie depicts that 1% of the respondents are consuming 200ml of Sangam dairy milk, where as 42%of the respondents are consuming 500ml, 52% of the respondents are consuming 1-2lt, and 5% of the respondents are consuming more than 5lt of sangam dairy milk.
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4) Statement showing " which variety of milk do you prefer more?"

SR.NO 1 2

VARIETY Toned milk Cream milk

PERSENTAGE 70 30

Toned milk

Cream milk

The above pie depicts that 70% of the respondents are consuming Toned milk, where as 30% of the respondents are consuming Cream milk.

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5) Statement showing " From how many years you are purchasing sangam dairy milk?"

SR.NO 1 2 3 4

USAGE Less than 1 year 1-2 years 2-5 years More than 5 years

PERSENTAGE 13 25 29 33

Less than 1 year

1-2 years

2-5 years

More than 5 years

The above table depicts that 33% of the respondents are using Sangam milk from more than 5 years, where as 13% of the respondents are using from less than one year, 25% of the respondents are using from 1-2 years, 29% of the respondents are using from 2-5 years.
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6) Statement showing "when would you purchase sangam milk?"

SR.NO 1 2 3

TIME OF PURCHASE Morning Evening Both times

PERSNTAGE 65 10 25

Morning

Evening

Both times

The above pie depicts that 65% of the respondents are consuming in the morning, where as 10% of the respondents are consuming in the Evening, 25% of the respondents are consuming Both times.
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7) statement showing " How would you use sangam milk?"

SR.NO 1 2 3 4 5

MIOLK PRODUCTS Butter milk Curd Tea/Coffee Ghee All

% OF USES 7 35 39 5 14

Butter milk

Curd

Tea/Coffe

Ghee

All

The above pie depicts that 7% of the consumers are using Butter milk, where as 35% of the consumers are using Curd, 39% of the consumers are using for Tea/Coffee, 5% of the respondents are using for Ghee, 14% of the respondents are for All the purposes.
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8) Statement showing " How is the timely supply of milk?"

SR.NO 1 2 3 4

TIME SUPPLY Excellent Good Average Bad

PERSENTAGE 43 44 10 3

Excellent

Good

Average

Bad

The above table depicts that 43% of the respondents are telling Excellent, 44% of the respondents are telling Good, 10% of the respondents are telling Average, 3% of the respondents are telling Bad.

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9) Statement showing " what kind of problems would you face after buy milk?"

SR.NO 1 2 3

PROBLEM Spoilage Leakage Others

PERSENTAGE 67 25 8

Spoilage

Leakage

Others

The above pie depicts that 67% of the respondents are facing Spoilage problem, 25% of the respondents are facing Leakage problem, 8% of the respondents are facing Other problems.

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10) Statement showing " Do you purchasing unbranded milk also?"

SR.NO 1 2

PURCHASING Brand milk only Unbranded milk

PERSENTSGE 82 28

Brand milk only

Unbranded milk

The above pie depicts that 82% of the respondents are purchasing Brand milk, where as 18% of the respondents are purchasing unbranded milk.

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11) Statement showing "would you see ISO certification at the time of purchasing?"

OPINION SR.NO 1 2 PEOPLE Yes No

OF

THE PERSENTAGE 65 35

Yes

No

The pie depicts that 65% of the respondents would see ISO certification at the time of purchase, where as 38% of the respondents would not see ISO certification at the time if purchase.

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12) Statement showing " How do you feel about the pricing?"

SR.NO 1 2 3

CHOICES High Average Low

PERSENTAGE 22 68 10

High

Average

Low

The above pie depicts that 22% of the respondents feel that the price is High, 68% of the respondents feel the price is Average, 10% of the respondents feel the price is low.

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CHAPTER-6

58

FINDINGS

The management of THE GUNTUR DISTRICT MILK PRODUCERS COOPERATIVE UNION LTD has been working sincerely and achieving the goals of the organization successfully.

68% of the consumers are purchasing dairy packet milk daily.

40% of the respondents are using sangam dairy milk.

33% of the consumers are purchasing milk from more than 5 years.

Toned milk has the largest market share of the total quantity consumed daily that is 70% , whereas share of cream milk is 30%.

Most of the sangam dairy consumers are consuming 1-2lt of milk that is 52%, where as 42% of the consumers are using 500ml daily.

Out of the total respondents 65 % of them are purchasing milk in the morning.
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 The major use of sangam milk is for curd that is 35% of the respondents, where as 14% of the respondents are using all products.

43% of the consumers are telling supply is excellent, where as 44% of the consumers are telling good, 10% of the consumers are telling average, 3% of the consumers are telling bad.

82% of the consumers are telling purchase brand milk, where as 18% of the respondents are telling purchase unbranded milk.

67% of the respondents are facing spoilage problem, where as 25% of the respondents are facing leakage problem, 8% of the consumers are facing other problem

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SUGGESTIONS

The growth and development of dairy not only depends upon the availability of the monetary resources. One should recognize other factor also that contributes for the development of dairy.

Advertisement should be increased to upgrade the image of sangam dairy in the change environment, where private dairies are coming up.

Sales promotion committee has to implement new market strategies to compete with competitors and to expand the market.

During survey it is found that consumers are facing problem regarding quality and package of milk.

Sangam dairy should solve these problems in proper attention is paid towards these problems it will help sangam dairy in retain its customers.

Spoiled milk should be replaced. It was found that some of the respondents are using unbranded milk. Proper attention as to pay towards them so as to make them use sangam milk only.

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QUESTIONNAIRE

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A STUDY ON CONSUMER PERCEPTIONTOWARDS THE MILK OF SANGAM DAIRY SURVEY QUESTIONNARIE

1. Which milk would you use? a)Dairy packet milk b)Milk vendor

2. What are the reasons to purchase from milk vendor? a)Taste b)fresh c)Credit facility d)All

3. When do you purchase of milk? a)Morning b)Evening c)Both times

4. Which dairy milk packet would you use? a) Sangam b) Thirumala c) Reliance d) Others

5. What are the reasons to use of sangam dairy milk? a) Taste b) Freshness c) Quality

6. How much quantity of milk do you consume daily? a)200ml b)500ml c)1-2 lt d)More than 2 lt

7. From how many years you are purchasing sangam dairy milk? a)0-1 year b)1-2 years c)2-5 years d)More than 5 years

8. Which type of milk do you prefer more? a)Ghee b) Flavored milk c)Butter milk

9. Would you use sangam mineral water ? a) Yes b) No

10. How would you use sangam dairy milk? a)Curd b)Butter milk c)Ghee 63

11. What kind of problems would you face after purchasing milk? a)Spoilage b)Leakage

12. How frequent would you face this problems? a) Frequently b) Rarely

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BIBLIOGRAPHY

65

BIBLIOGRAPHY

TEXT BOOKS
Marketing Management Philip Kotler

Marketing Management

Ramaswamy& Namakumari

Modern Marketing Research

Patella S.F

Consumer Behavior and Marketing Research

Schiffimann and Kaneka

INFORMATION GATHERED THROUGH INTERNET

www.Indian dairy industries.com www.google.com (consumer perception)

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