Documentos de Académico
Documentos de Profesional
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1st Year Academic Year 2010-2012 Enrollment no. 107580592022 Name of institute Shri Aurobindo Institute Of Management Guided by Mr. Hasmukh Pandya Project Guide Prof. Kalpesh Pandya Submitted to Gujarat Technological University, Ahmedabad
AN INDUSTRIAL SUMMER INTERNSHIP PROJECT REPORT AT SARVOTTAM DAIRY ON CONSUMER SATISFACTION TOWARDS AMUL MILK
COMPANY CERTIFICATE
COLLEGE CERTIFICATE
DECLARATION
I undersigned, Gaurav M. Parekh, the student of M.B.A. hereby declare that, I have undergone the industrial training at Sarvottam dairy and taken training from 01-06-2011 to 15-07-2011 i.e., for 45 days. during this training I was obliged to be guided by Mr. Hasmukh Pandya ( Production manager ) and also by Mr. Kalpesh Pandya, professor of Shri Aurobindo Institute of Management.
I ensure that, the project work presented in this report is based on my training and information provided by the concerned organistion. This work has not been previously submitted to any other university for any examination.
Gaurav M. parekh
PREFACE
THE EXPERIENCE IS LIKE ADDING SUGER TO SWEET Experience makes a man perfect.
Knowledge is one of the most important treasure for any person. Knowledge and practice are twins and both go together, there is no knowledge without practice and no practice without knowledge.
The main purpose of practical training is to gain knowledge of and study about the organization. To become sharper in the field of management, one needs both practical as well as academic knowledge. During this training period, student can get a chance to meet the senior executive and learn something from their experience. Practical studies prove to be very important and necessary as it helps a student to enter into practical field and get an idea about the exact position of an entrepreneur.
Being a student of M.B.A., a 45 days practical training is required. so I complete my training at Sarvottam dairy and complete my research work in Marketing management on Consumer satisfaction towards amul milk
All the valuable data are collected from reliable source of the company, which are trustworthy. An activity such a project report gives lot of pleasure to me, as I enjoy living practical life.
ACKNOWLEDGEMENT
I feel great pleasure in submitting this report as a part of my practical study in the professional course of management. This visit has been helped me a lot in acquiring knowledge regarding dairy industry.
The Objectives of practical studY in the form of industrial training at the M.B.A. level is to give a perspective about the organization, functioning of management and make research about industrial unit. As a student of M.B.A., I have presented the research report on consumer satisfaction towards amul milk in sarvottam dairy, Sihor.
It is not always easy to make the task successful. It requires tremendous efforts. In preparation of this report, I have received encouragement and support from various persons. I take the opportunity to express my gratitude to all these persons.
I would like to thank MR. Mahendrabhai Panot , M.D of, Sarvottam dairy to give me such a golden chance to work with him and to open the door of the his unit for me work their and to pass six golden week of my life. I would like to thanks Production Manager of sarvottam dairy Mr. Hasmukhbhai Pandya for obliging me by providing there full co-operation and giving all type of information about the unit and share with me all the knowledge, experiences very friendly. I would also like to thank my project guide Professor Kalpesh Pandya for guiding me for my project work and helping me to complete my project work.
Last but not the least, I am thankful to all the senior executives and other staff members who have spend their precious time in helping me throughout my training. I really thank once again to everyone who has directly or indirectly helped me throughout this training.
EXECUTIVE SUMMARY
The project titled Customer satisfaction towards amul milk was carried out in the market of bhavnagar district under the sample unit of Sarvottam dairy. The main objective of the market research was to find out the level of the consumer satisfaction and take necessary steps or action , that would help in increasing Consumer satisfaction.
According to the study , most of the consumer used amul milk and most of them are satisfied towards product. As per his view such changes are required. So I hope, this project will surely going to help sarvottam dairy to increase in the number of satisfied consumer and also help to gain new customers.
During the course of study a substantial amount of data was collected. This data has been analyzed and presented in this project. Charts have been used in the representation of data.
Conclusion have been drawn based on the analysis of the data collected. The conclusions are based on Consumer satisfaction; factors currently influencing the purchase of milk
NO. 1. 2. 3. 4. 5. 6.
PARTICULARS Process chart Organization structure Distribution network Organization structure of marketing Channel of distribution Data analysis and interpretation
PAGE NO.
INDEX
Sr. No. Particular PHASE- I
1. Industry overview 2. Introduction and industry profile Indian dairy industry facts and figures Key challenges
Page no.
Company profile Introduction History and development Size of unit Form of organisation Board of directors Manufacturing process List of products Organisation structure Mission and Vission Objectives of the dairy Distribution network Company profile
Sr. No.
3.
Particular
Human resource department
Page no.
Introduction Recruitment and Selection Training and Development Promotion and Transfer Policy Performance Appraisal Wage and Salary Administration Working on E.S.I. Scheme Study of Provident Fund Personal Records
4.
Marketing department
Organization Structure Product Planning Market Segmentation Pricing Policies Channel of Distribution Sales Promotion Advertising Market research
Introduction Capital structure Management of Fixed Assets Operating cycle Working capital management
PHASE - II
1.
Research Methodology
Literature review Introduction about the topic What is research Research problem Research objectives Research design Data sources Sampling design Limitations
2. 3. 4. 5. 6. 7.
Data analysis and interpretation SWOT analysis Findings Suggestions Conclusion Bibliography
INDUSTRY OVERVIEW
Gradually farmers living near the cities took advantage of their proximity to the cities & began supplying milk to the urban population; this gave rise to the fluid milksheds we see today in every city of our country.Prior to the 1850s most milk was necessarily produced within a short distance of the place of consumption because of lack of suitable means of transportation and refrigeration.
The Indian Dairy Industry has made rapid progress since Independence. A large number of modern milk plants and product factories have since been established. These organized dairies have been successfully engaged in the routine commercial production of pasteurized bottled milk and various Western and Indian dairy products. With modern knowledge of the protection of milk during transportation, it became possible to locate dairies where land was less expensive and crops could be grown more economically.
In India, the market milk technology may be considered to have commenced in 1950, with the functioning of the Central Dairy of Aarey Milk Colony, and milk product technology in 1956 with the establishment of AMUL Dairy, Anand. Indian dairy sector is still mainly an unorganized sector as barely 10% of our total milk production undergoes organized handling.
Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945 Pasteurization and bottling of milk on a large scale for organized distribution was started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963) etc.
Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over India. These were taken up with the dual object of increasing the national level of milk consumption and ensuing better returns to the primary milk producer. Their main aim was to produce more, better and cheaper milk.
Marketing : In 2009-10, average daily cooperative milk marketing stood at 195lakh liters, registering a growth of 4.2 percent over 148.75 lakh liters in 2003-04. Dairy Cooperatives now market milk in about 200 class cities including metros and some 550 smaller towns. During the last decade, the daily milk supply to each 1,000 urban consumers has increased from 17.5 to 52.0 liters.
COMPANY PROFILE
The business philosophy and mission of Sarvottam dairy is to serve the interests of milk producers by providing remunerative returns to them and to satisfy the taste and nutritional requirement of the customers of the world, by achieving excellence in marketing and by provide quality products that offer the best value to consumers for money spent. Sarvottams main objective is, carrying out activities for the economic development of agriculturists by efficiently organizing marketing of milk and dairy produce. This is to be done through common branding, centralized marketing, centralized quality control, centralized purchases and pooling of milk efficiently.
The values that it adheres to are customer orientation, commitment to producers, attaining co-operation and upholding integrity, orientation for new products, achieving and maintaining excellence, delivering quality, encouraging innovation, orientation for new products, generating belongingness, having pride in organization, and providing employee satisfaction.
Now a days Sarvottam merged with AMUL DAIRY(GCMMF), ANAND. So it follows a pattern better known as the Amul Pattern or Anand Pattern that visualizes dairy co-operative societies at village level, a processing unit called union at the district level Operative. The total milk receiving per day is of 1,20,000 liters. The total milk collection as well as average milk collection per day for the year 2009 10 was of 216 lacs liters respectively. The 55,000 milk use for the selling or marketing purpose and remaining 65,000 was sent to the mother dairy.
SHRI BHAVNAGAR JILLA SAHAKARI DOODH UTPADAK SANGH LTD. (SARVOTTAM DAIRY)
History and development : GUJARAT DAIRY DEVELOPMENT BOARD establishes Bhavnagar dairy in 1974. Bhavnagar dairy has brand name SAURAS. By this name Bhavnagar dairy sells milk and ghee in Bhavnagar district, by co-operative members of the district the milk is sold to the Sangh and after processing the milk it is sold under the name of Bhavnagar dairy. In year 1989 the highest milk purchased from co-operative members was 42,500 liters and they sell the purchased milk to different areas of district. As the year passed the production came down and due to some crisis government closed Bhavnagar Dairy on 24-12-1999.
Sangh was enabling to serve Bhavnagar dairy from crisis. When sangh was established in 1974 they took the responsibilities to solve the problems of their co-operative members but the response by the government was not proper to save Bhavnagar dairy to help the small milk producers.
Because of the crisis of Bhavnagar dairy the milk producers of whole district came into financial crisis as they had no option to sell their milk. After sometime the producers made meeting in Jilla panchayat ground and majority of them took the responsibility of re-establishment of Sangh. Mr. H.R. Nandva and Mr.M.P.Pandya with the help of political bodies like Sunil oza, Rajendrasinh rana and Mr. Mahendrabhai Panot decided to establish the sangh. Mr. H.R. Nandva and Mr.M.P.Pandya send the application to Gujarat government for the re-establishment of sangh in the district. On temporary basis SRI AUROBINDO INSTITUTE OF MANAGEMENT
CUSTOMER SATISFACTION TOWARDS AMUL MILK government tie up milk producer of Bhavnagar district with Uttam dairy, Ahmedabad and Government also formed a government body under president ship of Mr. V.C.Joshi to take care of the responsibility of producers of Bhavnagar district and Uttam dairy and also to work as a mediator between this two.
As I mentioned above that H.R.NANDVA and M.P.PANDYA are the main bodies of this work on the behalf of whole district. They started to sell the milk produced by the district to Uttam dairy on 3-1-2000 and on the date of 14-4-2000 Uttam dairy established a chilling center in TALAJA near Bhavnagar.
This system was temporary. So a permanent body was required to be formed on behalf of all the milk producers. For this purpose, the meeting of milk producer was needed under the chairmanship of Mr. Mahendrabhai Panot.The registrar of Bhavnagar Mr. K.B.Upadhyay also supported and guided for further process. At the end, on the date of 276-2001 under the registration number: REDG/U 28701 the Sangh formed second time. But as the handling of the milk was done by Uttam dairy the Sangh started to make the members at co-operative level and after some time they started to provide animal food and other basic things to their members in order to increase the number of member.
At the end with the help of (GCMMF) that is GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION, The meeting was held between Mr, Mohanbhai Bharvad the chairman of Uttam dairy and Mr. Mahendrabhai Panot the chairman of BHAVNAGAR JILLA DOODH UTPADAK SANGH LTD. In this meeting it was decided that the chilling center which was developed by Uttam dairy and other dead stock was purchased by Sangh, they started production in Talaja on rented land. On the date 2111-2004 the Sangh started its production and distribution system. The profit earned thereby under the name of dairy was used in purchasing a land near sihor and a new plant was established on the date 12-12-2005.
When Dairy was started it had many problems regarding raw materials means the milk which was owned by the milk producer, machinery, labour and was not having enough skilled people. In order to survive under all odds, now they have 1 distributor in every taluka and 17 distributors in Bhavnagar city. At present, the dairy collects 1,20,000 liters of milk per day, but it processed on 55,000 liters and remaining 65,000 will sent to Mother dairy.
Size of Unit:
There are three types of industry. 1. Small Scale Industries 2. Medium Scale Industries 3. Large Scale Industries. Small scale unit is a unit in which investment in fixed assets and current assets is less than Rs. 1 crore. Medium scale unit is a unit in which investment in fixed assets falls between range of Rs. 1 crore to 5 crore. Large scale unit is the one in which investment in machinery and plant exceeds above Rs. 5 crore.
In Dairy the total plant cost is of Rs.2,90,00,000 and it is said to be a Medium scale co-operative dairy. Depending on the ownership, the business organization can be classified in the following forms:
1 Sole proprietorship 2 Partnership 3 Joint sector company 4 Co-operative organization 5 Government departments 6 Public organizations 7 Government company
From the name itself it can be known that it is a co-operative unit. The producers of milk get together and form a SANGH, that is runned by trained and experienced persons and they get the profit from selling their milk to the SANGH. The SANGH process that milk and sell it to the local market and the profit is divided in the form of dividend.
Form of organisation :
Before 8 years, the form of this industry was sole- proprietorship but it is converted in to co-operative firm. As the name it suggests that it is a co-operative unit. In additional to above there is also other like computer it in dairy manufacturing department. The dairy occupies about 30 acre lands for manufacturing unit and it has one big cold store room on its premises the average receive milk 1,20,000 liters and selling 55,000 liters per day and remaining 65,000 sent to Mother dairy.
Formal Organization:
Board of directors:
1. Mr. MAHENDRABHAI PANOT, CHAIRMAN 2. Mr. H.R.NANDVA, M.D 3. Mr. BHALIYA MAUJIBHAI, DIRECTOR 4. Mr. CHUNILAL BARAIYA, DIRECTOR 5. Mr. BHIKHABHAI KHODAFAD DIRECTOR 6. Mr. DAYARAMBHAI BARAIYA, DIRECTOR 7. Mr. GIRJASANKARBHAI DHANDHALIYA DIRECTOR 8. Mr. MATHURBHAI ZINJALA DIRECTOR 9. Mr. JESHABHAI KHER DIRECTOR 10. Mrs. SHARDABEN RAJYAGURU DIRECTOR 11. Mrs. PRABHABEN VALAKI DIRECTOR 12. Mrs. DEVUBEN BHATT DIRECTOR 13. Mr. LAKHUBHAI KAMALIYA DIRECTOR 14. MEMBER OF GUJARAT CO-OPERATION MILK MARKETING FEDRATION DIRECTOR.
Receive milk from co-operative Society of milk | | Milk Tank (Storage) | | Taking general Fat & S.N.F. | | Standardization (Maintain Fat & S.N.F.) | | Pasteurization | | Packaging | | Dispatch to Distributor
No.
Milk
FAT %
SNF %
QTY.
Selling rate
AMUL GOLD
6.0
9.0
1.ltr
32.00
33.00
34.00
AMUL BUTTERMILK
0.5
6.5
1 liter
12.00
12.80
14.00
Process : -
Some competitors are as under. 1. MOTHER DAIRY 2. B.D.P.L. (BACHUBHAI DUDHVALA PVT. LTD.) 3. SUGAM MILK 4. RAJWADI MILK 5. SUMPURNA MILK
ORGANISATIONAL STRUCTURE
CHAIRMAN (Mr. MAHENDRABHAI PANOT)
B.O.D.
H.O.D Eng
Quality assurance
plant operator
Assistant
____________________________________________
_____________________ Supervisor
Clerk
computer Operator
store keeper
The good organization structure is most important and vital, because with the help of the good organization structure, the managerial ability and inner energy of the managers come out. The managerial ability and develop of the business depend upon the organization structure of an organization. The organization structure of the SARVOTTAM DAIRY includes three levels. 1) Top level. 2) Middle level. 3) Lower level.
1) TOP LEVEL
Top level includes the unit or groups. Top level consists of mainly Board of Directors, General Manager, and Chairman etc.
2) MIDDLE LEVEL
Middle level is the very important level, because it is the linker who combines both the level top level to the bottom level. Finance head Production head Co-operative head Marketing head Auditor Mr. Bhikhubhai Patel Mr. Hasmukhbhai Pandya Mr. Bharatbhai Kher Mr. Vijaybhai Ramana - Mr. Jagdishbhai Mehta (C.A.)
3) LOWER LEVEL
A lower level or bottom level seen at the lowest in the chart of company. It is the level, where actual work is done. Workers. Forman.
The total capacity of dairy is 1,20,000 liters per day. From which they use55,000 liters of milk for packaging and distribute it in the district and rest of 65,000 liters of milk they sent to MOTHER DAIRY, If we take the production part of the dairy, but if we take the selling part, the dairy only have 70% market of Bhavnagar district. So it shows the growth and development of dairy. The dairy is largest producer of milk at district level.
Opportunity:
Sarvottam dairy has opportunities to increase market share for the milk products in Bhavnagar as well as Gujarat state markets. Sarvottam dairy has also opportunities to capture the food market. An another opportunity of Sarvottam dairy is that to motivate of consumer for purchase packing milk from loose milk.
Distribution network:Most producers do not sale their good directly to the final user. But they sale their product by keeping marketing intermediaries perform various type of function and bearing various names. It means most producer work most producer work with marketing intermediaries to bring their producers to market. The marketing intermediaries made up a marketing channel. Sarvottam dairy consider Two level of distribution.
COMPANY PROFILE :
Name Registered office Sarvottam dairy Sarvottam dairy Bhavnagar Rajkot highway, Sihor. Establishment Date Registration Date Registration no. Form of organization Chairman & Promoter Managing Director Auditors Bankers 1-3-2000 12-12-2005 REDG/U28701 Co-operative firm. Mr. Mahendrabhai Panot Mr. H.R.Nandva Mr. Jagdishbhai Mehta (C.A.) 1) State bank of saurashtra, Sihor branch 2) IDBI, Bhavnagar. Telephone no. Fax Total workers and staff Manufacturing Product (02846) 329633, 225502. 91-02846-225501 73 workers. 1) Amul gold milk. 2) Amul butter-milk. Main product Average marketing (per day) Annual output Competitors Milk. 55000 liters. 216 lacs liters. 1) B.D.P.L. 2) Rajwadi milk 3) Mother dairy 4) Sampurna milk.
Introduction :
HRM is a process of producing development, maintaining and controlling human resources for effective achievement of organization goals.
Human resource management is an art of managing people at work in such a manner that they give their best to the organisation. Human resource management is also a management function concerned with hiring,motivating and maintaining the people in an organization.
HRM involves the application of management functions and principles. The scope of HRM is indeed vast. All major activities in the working life of his or her entry into organization until he or she leaves come under the previews of HRM. Success of the any industry or company depends upon the efficiency of the work of employee. HRM is an essential part of organization. It is totally based on inter relation between the employee in organisation. Establishing sound and harmonious industrial relations and taking decisions that are favorable for both the organization and employees.
In the Sarvottam dairy there are very less employees who are permanent, many of them are on contract basis. Still the human resource department is required. The department does its work very efficiently. The employees as well as laborer are happy with the management. The atmosphere is neither very rigid nor very flexible. They also deal with the emotional aspect of an employee or worker.
Recruitment :
Recruitment is the process of searching for prospective employee and stimulating them to apply for jobs in the organisation. A good organisation structure & good plan can be easily run if there is a proper way of recruitment. Recruitment makes it possible to acquire the number and types of people necessary to ensure continuous operation of organization. There is no general procedure for hiring people, which is applicable to all business enterprise. Each enterprise has its own procedure, which brings desired quality.
In the Sarvottam dairy, the recruitment process is not an organized one, because most of the employees and workers are on the contract basis. The requirement of workers is fill up by private contractors, so contractor solves any dispute between the worker and organization. Contractors are liable for any problem raised by the workers. The benefit of contract system is that the cost of recruitment process is cut down; they pay some amount to contractors and tell their demand regarding workers. Now it is headache of contractors to find the right type of workers for the dairy and also be liable for the problems regarding workers.
Selection :
After application of require number of employee are secured through different method of recruitment, selection process begins main purpose of selection producer is to find the right man for each job. The efficiency & profitability of the concern depends mainly on proper selection of the personal.
The selection procedure is concerned with securing relevant information about an applicant. The steps of selection in the original method are as under.
Searching of application Selection test Preliminary interview Psychological test Checking reference Written and oral test Final selection by interview Placement
But as I stated above the labour work is done on contract basis so there is no procedure for selection of labourers. The selection procedures for an officer and management cadre are as follows;
Searching for application Call for interview Checking the reference in the interview Placement
CUSTOMER SATISFACTION TOWARDS AMUL MILK Also there are some sources by which the dairy fills up the vacancy. The sources are;
So far Sarvottam dairy is concerned they use all the above sources for recruitment. In the last two year dairy sent his 5 employees to Amul dairy,Anand for the further training. And after the completion of training they are promoted. And the workers are on the contract basis so they use their external source of contractors. Also the advertisement is used for the recruitment and management also considers the employees recommendation for low-level job.
Training and development are the process concerned with the increasing capabilities of individual and groups so that they may contribute effectively for the attainment of organizations goal.
The Sarvottam dairy sent new fresh employees in Amul dairy for training and after this employee are working in Sarvottam dairy.
1. Seniority 2. Performance
In Sarvottam dairy, promotion is given on the performance basis. First a person join as a junior in the dairy as his qualification and after that by his experience and certain course done by him, he will promoted to the higher level. The dairy was commenced on 2005 so there is no major promotion done.
Transfer :
A transfer is a horizontal or lateral movement of an employee from one job, to another place where his salary, status and responsibility are the same.
In Sarvottam dairy, there is no transfer because there is no branch of this dairy. But the internal transfer is there, from one department to another department within the dairy. But the transfer is most on the labour work because it does not require any high skill for the work. But the work related to operating plant or a machine is not a transferable work.
In Sarvottam dairy , the payment is counted on daily basis. They make a part of salary in different grade or rather we say they pay the salary as per
company and job to job. In this firm the wages and salary of the employee is minimum 100 rupees will be paid per day to employees. The structure of the wages SARVOTTAM DAIRY is as follows:
Designation
1 2 3 4 5 6 7 8 Peon Clerk Operator Officer Manager (production) Manager (marketing) General Manager Assistance(marketing)
Per Day
100 150 200 250 400 300 833.33 183.33
Per Month
3000 4500 6000 7500 12000 9000 25000 5500
Per Annum
36000 54000 72000 90000 144000 108000 300000 66000
The SARVOTTAM DAIRY has provided supervisor`s travelling expenses, allowance, wages and salary paid after one month.
Personal Records
A record is a piece of writing or a chart, which provides ready future reference or use. Personal records are very important for the company to know about their employees. This department also keeps record of though workers who are working at present.
Looking at the important of personnel records DAIRY also maintain records of its personnel separately. The SARVOTTAM DAIRY keeps the personal record of the H.R manager. They are as follows:
Name and address of the employees. Education of employees. Experience of the employees. Reasons for job the form. Interview report. Training report. Monthly health report.
MARKETING DEPARTMENT
Introduction :
Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas , goods and services to create echanges that satisfy individual and organizational goals. In a book it is said by Pramod Batra that , the consumer do not always buy products, but after buy images and the work of creating that images is done by marketing department, after all selling is once, but marketing is when it is sold again and again.
Marketing department considered to be at high importance because the profitability of any company largely depends upon the efficiency of marketing activities of marketing department. It is related with selling the cmpanys product at favorable price.
The dairy commenced its working just before three years, so their marketing department is not very experienced in this field. the dairys marketing department is growing up slowly. The principle regarding marketing is very clear. The major principle is as below;
1) Reasonable price of milk pouch 2) Good quality of milk 3) Supply must be done as expected. 4) Using every techniques of marketing to inform the customer. 5) Easy availability of their product in any area.
Major decision regarding marketing is taken collectively by general manager and marketing manager. They also take advice from other officers. Marketing manager itself takes daily decision.
GENERAL MANAGER
CLERKS
PEONS
Product Planning
Product planning means planning required for product i.e. what type of product should be produce, what needs will product satisfy etc. It involves two types of decisions as stated below:
Product planning is a heart of marketing mix and it basically involves following issues. 1) Product mix 2) Product line 3) Packaging 4) Labeling 5) Branding 6) After sales service 7) Organizing 8) Product research Product planning is divided in three levels like .
Product mix is the set of all products that a seller offers for sale to buyers. Product mix involves some concept like product which refers to different product lines that the company carries.
The Sarvottam dairy is in milk production business and it is necessary for them to make easily availableness of their product because as I stated above this business has cutthroat competition, so SARVOTTAM must do all the needful efforts.
Their production depends on the order of the distributors. Suppose the average collection of milk is 60,000 liters daily from the co-operative members than if the demand is only of 20,000 liters rest 40,000 liters is send to Mother dairy as surplus. Mother dairy pay amount for this surplus milk, but it is not the profitable amount but the minimum price for the milk.
Market Segmentation
Market segmentation means dividing a market in to distinct groups of buyers with different needs, characteristics or behavior who might require separate products or marketing mixes. It is an approach mixing between mass marketing and individual marketing.
The market for the product of Sarvottam dairy is at a district level, but there is competition in it. They target the all customers, as milk is necessity of all people. Each and every people use the milk in different way, such like as a curd, sweet, ice cream or any milk product.
Their is a distribution in each Taluka of Bhavnagar district and 17 distributors in Bhavnagar city. They targeted all types of people by aggressive marketing. The price of their product is also compatible to other brands. So the people are satisfied with the price, service and quality which help them for development.
SEGMENTATION BASIS
Geographic. Demographic. Socio-graphic. Psychographic. Marketing on condition.
SRI AUROBINDO INSTITUTE OF MANAGEMENT
Pricing Policy
Pricing is an extremely important factor in determining both the revenue and product for the enterprise. Hence determining price is extremely important task.
Sarvottam keep the same price like amul because they producing amul milk. They brand are strong in the market and competition with amul milk is very tough.
Here the below factors are taken into consideration by dairy in fixing the price.
Purchase price of milk Cost of production Transportation cost Taxes Dividend policy The price of competitors Profit margin
In the dairy price is fixed by board of directors but they take the view of marketing and finance manager. They adopted cost plus pricing method, which is as follow:
Channel of Distribution
Distribution is a marketing activity, which facilitates the movement of goods from the producer to the ultimate consumer. Distribution channel means the set of marketing institutions participating in the marketing activities related to the movement of flow of goods and services from the primary procedure to the ultimate uses. Dispatching from the dairy
Distributors
Retail agent
Consumer After packaging, the milk is dispatched to the distributor. In early morning the vehicles of each distributor comes to the dairy from their respective town and as per the order noted down by dairy on the previous day. They take the money or cheque from the distributor and then they dispatch the carats of milk to the distributors vehicles.
After that the vehicles return to their respective area.. Then, the distributor sells those carats to retail agent as per their orders and take money or cheque in return. The retail agent sells the pouch of milk to the consumer. The distributor gets 0.25 paise per pouch of milk and the retail agent get Re. 1 or 0.75 paise per pouch. The distributor also gets the transportation allowance at the end of the month.
Sales Promotion
Sales promotion consists of a diverse collection of incentive tools mostly short term designed to stimulate greater purchase of particular products by consumer or trade. Sales promotion is a bridge or a connecting link covering the gap between advertisement and personal salesmanship, i.e. the two wings of promotion.
1. When a new brand is introduced 2. When major improvement in to existing product. 3. When we want to increase to retail stores.
Sarvottam has used various tools of sales promotion. They give Rs.6 as commission on a carat. Many a time they give Rs.2 extra if distributor sales are surplus than average. Retail agent also gets some amount on extra sales. And if consumer have booked a big order in carats than he also get the benefit in price. As the dairy wants the more market share they promote their sale by sales promotion.
Advertising
Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified organization through different media. At the time of advertising, marketing manager should keep in mind four Ms of advertising i.e. mission, media, money, and measurement. In DAIRY the marketing department is very careful about advertising. They use different tools of advertising stated as below:
- In City news - News papers - Pamphlets - Wall painting - Hoardings and boards.
They also give board, which states the different product and price to every distributor. If any retail agent sales more than average the dairy also provides a board to him. The stickers are provided to every retail agent. They put their hording on the prime location and they also paint on wall. On special occasion they give an advertisement in newspapers and the pamphlets are also distributed.
FINANCE DEPARTMENT
Introduction :
According to Hogland , Financial management is concerned mainly with such matter as, how a business corporation raises its finance and how it makes use of these funds . Financial management is that managerial activity which isconcerned with planning and controlling of the firms financial resources. Finance department has to manage the finance in such a way that both the goal of business say profit or wealth maximization is achieved.
As we go back to the history, the scope of finance management is divided into two approaches:
1. Traditional approach. 2. Modern approach. The key objectives of financial management would be to.
1. Create wealth for business. 2. Generate cash. 3. Provide an adequate return on investment.
Sarvottam dairy has a good finance department. They manage all their funds in such a way that they can get maximum return of the fund. As we know that this is a SANGH and they mainly use their share capitals amount for the investment and expenses. The decision regarding finance is a taken by general manager with the help of Joint General Manager and head of finance department.
Capital Structure
There are two principal sources of income for a company, equity and debt. These are the two components that make up the companys capital structure. Thus, capital structure may be defined as relationship of debt and equity.
A firm should always try to maintain an optimum capital structure. An optimum capital structure can be obtained at that combination of debt and equity that maximizes the total value of the firm. Thus, it can be said that capital structure decision are crucial as they affect the total value of the firm. So, they are to be taken very wisely debt-equity mix that maximizes the total value of the firm is to be selected. But it differs from company to company and organization to organization.
Share capital Share reserves (1% deduction from co-operative members Reserves and surplus Deposits Loans Total
If any part of manufacturing process is in need of any new machine or rather we say new technology, the General manager takes the decision about it, after consulting with Chairnan, director and manager of respective departments.
Now we see fixed assets turnover ratio. This ratio shows the efficiency and profitability of business, the total assets are compared to sales. The more the sales in relation to the amount invested in fixed assets, the more efficient is the use of fixed assets. It indicates higher efficiency. If the sales are less as compared to investment in fixed assets, it means that fixed assets are not adequately utilized in business.
Operating cycle
In case of SARVOTTAM DAIRY the operating cycle is very fast. As they are in the business of milk the operating cycle is complete in only one day. Lets see how? First of all we start with raw material; they get the milk from their co-operative member every day in the morning as well as in the evening. They start process on milk thereafter, as we see in the general information that the milk is passes from different process like pasteurization and s.n..f. After that the flow of milk is goes to the packaging machine and at the late night the packaging is completed. And in the early morning the distributor comes with their vehicles and purchases the milk on the cash basis. The dairy not allowed any kind of debt by the distributors. The dairy makes payment to the members on every 10 days basis. So there are no debtors and creditors ratio is available.
1. Gross working capital It refers to the firms total investment in total current assets, 2. Net working capital It is the excess of current assets over current liabilities.
Payment of Dividend
In the business every one is invest the money for some return. If the company or any firm doesnt give any kind of return to its investors, the investors withdraw their amount from the business. The other financial institution also hesitates to give any kind of loans to the firm who had not paid dividend.
The SARVOTTAM DAIRY is a co-operative unit and it is its responsibilities to pay a good amount of dividend to its member. The Sarvottam dairy paid 15% dividend from consecutive last three years and the co-operative members are also satisfied from it.
RESEARCH METHODOLOGY
Literature review
Consumer research in different disciplines
A considerable body of literature in a range of different disciplines exists on consumption, consumer behaviour, and consumer decision-making process. Research in economics, business, marketing, psychology and sociology domains studies consumer behaviour from different theoretical premises: for economists, consumption is used to produce utility; for sociologists, it is a means of stratification; for anthropologists a matter of ritual and symbol; for psychologists the means to satisfy or express physiological and emotional needs; and for business, it is a way of making money(Fine 1997).
For more than a decade now, a range of studies that address environmentally sound consumer behaviour, e.g. car use, waste sorting, minimisation and recycling practices, have been conducted. However, few studies evaluated consumer acceptance of the PSS concept a consumption based on non-ownership of physical products, see, for example, studies on car sharing schemes (Schrader 1999; Meijkamp 2000), ski rental and washing services (Hirschl, Konrad et al. 2001). One reason explaining the lack of studies in the area could be that, there are still not many PSS schemes in place to serve as test grounds. Another reason could beuniformity of research focus. Most of consumer research focused on adopter categories, habits, attitudes and intentions, rather than on actually measuring the satisfaction level with the service. The reason is probably that PSS ideas have been promoted by researchers from the environmental management, marketing, design and engineering fields, and to a lesser extent by sociologists, who hold the banner of research in customer satisfaction.
A Customer is not an interruption of our work , he is the purpose of it. We are not doing favor by serving him, he is doing us a favor by giving us the opportunity to do so.
CUSTOMER SATISFACTION :Customer satisfaction means giving the customers what they really want, when they want it and the way they want it. It involves understanding customer expectations and meeting them fully.
It can be defined as, An outcome of purchase and use resulting from the buyers comparison of rewards and the costs of the purchase in relation to the anticipated consequences. (Churchill and Surprenant 1982, 493)
Today, more companies are recognizing the importance of satisfying and retaining customers. Satisfied customers constitute the companys relationship capital. If the company were to be sold, the acquiring company would have to pay not only for the plant and equipment and the brand name, but also for the delivered customer base, namely the number and value of the customers who would do business with the new firm.
Conformance of services to their requirements and its performance in actual Stage. Competitive prices. Quality and reliability. Prompt delivery. Service.
Customer Perceived value :Customer perceived value (CPV) is the difference between the prospective customers evaluation of all the benefits and all the costs of an offering and the perceived alternative.
Total customer value is perceived monetary value of the bundle of economic, fuctional, and psychological benefits customers expect from a given market offering.
Total customer satisfaction :Whether the buyer is satisfied after purchase, depends on the offers performance in relation to the buyers expectations. In general, satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (of outcome) in relation to his or her expectations. If the performance falls short of expectations, the customer is dissatisfied .If the performance matches the expectations, the customer is satisfied. If the performance exceed expectations, the customer is highly satisfies or delighted.
Complaint and suggestion systems Customer satisfaction survey Ghosts Shopping Lost Customer Analysis
What is Research ?
Research can be define as a, clearful investigation or inquiry specially through such for new fact any branch of knowledge.. In fact, research is an art of scientific investigation. Research in common term is reference to search for knowledge. It is also known as journly moving from known to un-known. As such term research refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain either in the form of solutions towards the concerned problem or in certain generalizations for some theoretical formulation.
Meaning of Research:-
Basic research (also called fundamental or pure research) has as its primary objective the advancement of knowledge and the theoretical understanding of the relations among variables; it is exploratory and often driven by the researchers curiosity, interest, or intuition. It is conducted without any practical end in mind, although it may have unexpected results pointing to practical applications.
Research problem :As we know in the actual industry it is dificult to satisfy each and every customer. But again that is what industry is in need of . I have identify the main problem of why customers are not satisfied and if they then how can we convert satisfied customers into delightful customers.
Research objectives
Research refers to collecting, formulating and analyzing data on specific topic and finding the solutions. Though every research study has its own specific objective. The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth, which is hidden and which has not been discovered as yet. In fact research is an art of scientific investigation.
Objectives : Finding out the market and customers view about the Amul milk .
To gain the practical knowledge about customer satisfaction in practical World. Finding out whether customers are satisfied towards Amul milk or not. Finding out the attitude of the consumer towards the Amul milk.
Research Design
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The design decisions happen to be in respect of
1) What is the study about? 2) Why is the study being made? 3) Where will be the study be carried out? 4) What type of data is required? 5) Where can the required data be found? 6) What periods of time will the study include? 7) What will be the sample design? 8) What techniques of data collection will be used ? 9) How will the data be analyzed? 10) In what style will the report be prepared?
Research design is the plan structure and strategy of investigation conceived as to obtain answers to research questions and to control variance. Research design is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximal information with minimal expenditure of effort, time and money.
Research design is the blueprint for the collection measurement and analysis of data. It is a plan outlining how information is to be gathered for an assessment or evaluation that includes identifying the data gathering methods, the instruments to be used/created, how the instruments will be administered, and how the information will be organized and analyzed.
This research study is of Exploratory research study because this research is made on the basis of primary data collected through the questionnaires.
Data sources
There are mainly two types of sources of data collection.
In this Research study, I have selected the method of collecting information through primary data collection. the data were collected through the questionnaire method.
Sampling design
Introduction :A sample design is a definite plan for obtaining sample from a given population. It refers to the technique or procedure in research would adopt in selecting items for sample.it also includes the number of items in the sample that the size of sample. The selected sample constitute, which is technically called a sample and the selection process is called sampling technique. The survey so conducted is known as sample survey.
- Sample units :
Sample units may be geographical one such as state,district,village etc. or a construction unit such as house,flat etc. or it may be a social unit such as family,club etc. or it may be an individual.
- Sample size :
This refers to the number of items to be selected from the universe to constitute a sample; this is major problem before a research. I took 50 respondents among the total consumers are to be conducted under the survey.
- Sample universe
My Target sample size is consumer of Bhavnagar district. Sample : - The sample size will comprise of 50 sample units.
- Sampling Method:
In this research I use Simple random sampling method. Samples from different strata will be selected randomly.
Limitations
As there are two sides of the same coin, in the similar way though much of significance and the scope of study, there are some limitations of the study.The collection of data is the main part for doing any research. The data is collected from the some selected sample size and the data are collected through the questionnaires. Therefore, there is certain limitation of the study.
1. The survey work was conducted in Bhavnagar district only so, it Can not cover the preference of other areas consumer.
2. The sample size taken for the survey work was 50 because of the limited time period. In this research study, I collect data from only 50 customers and I cant reach to other customers. So it is not possible that the reviews of all other customers are same.
3. There is a chance of mistake in the answer because of the limited knowledge of the respondent.
4. Respondent does not give the picture of the current situation. We cant say that information given by all respondents are fully correct. It may be wrong.
5. It may happen that all the aspects of research can not be covered through questionnaire.
60% 50% 50% 40% 30% 20% 10% 0% 0% Excellent Very good Good Poor 28% 22%
- Intrepretation
Here we can say that most of the customer feel excellent after purchasing the product, i.e. 50%. The remaining 28% and 22% feel very good and good. So we can say that overall result is very good.
- Interpretation
Above graph indicates that in the total population 64% of people have recommended that, the price of the Amul milk is reasonable and 34% have recommended the price is not reasonable or high or they are not satisfied with the price.
54%
10%
- Interpretation
The above chart indicates 85.37% respondents, that major of the respondents satisfied with the quality of the milk. On the other hand, 14.63% respondents has not satisfied with the quality.
4) Through which media you are came to know about the Product ?
Response Frequency TV 20 Hoarding 11 Wall painting 13 other 6
- Interpretation
The above chart shows that, most of the consumer came to know about the product through TV that 40%. Other 22%% consumer came to know about the product through hoarding. 26% consumer through wall painting and 12% consumer came to know through other media.
Response Frequency
Yes 40
No 10
20%
Yes No
80%
- Interpretation
The most of the customer say that , the product is easily available on retail shop i.e. 80% and remaining 20% say that, they not find product easily on retail shop.
Response
Brand name
Price
Packing
Frequency
24
10
11
10%
22%
20%
- Interpretation
The above chart indicate that, most of the consumer ( 48% ) believe in quality and taste and they make purchase decision regarding the quality and taste. The another 20% believe in price, 22% believe in brand name and 10% believe in packing.
5 liter 6%
1 liter
68%
500 ml.
26%
0%
20%
40%
60%
80%
- Interpretation
The most of the consumer that 68% prefer 1 liter quantity, 26% consumer prefer 500 ml. quantity and only 6% consumer will prefer 5 liter quantity.
8) As per your preference, there may any changes required in quality and taste of the milk?
Response Frequency
Yes 18
No 32
- Interpretation
The above chart indicate that, in the total population 64% consumer not required to any changes in quality and taste of the milk. Means majority of consumer are satisfied with the present taste and quality. On the other hand, 36% consumer required changes in quality and taste.
60% 50% 40% 30% 50% 20% 30% 10% 0% Never Rare Sometime 12% 8% Frequent
- Interpretation
As per the above chart, we can say that most of consumer has no any problem with a product i.e. 50%.
16% 54%
18%
- Interpretation
The most of the respondents i.e. 54% believe that the product is excellent. 18% % respondents believe that the product is very good. 16% respondents believe that the product is good and 12% believe that, the product is satisfactory.
S.W.O.T. Analysis
Strengths
The major strength of the Sarvottam Dairy is the different variety of Milks and a recognized brand name amul. The increasing demand for these products presents a great opportunity for the Sarvottam Diary to increase and scale up the production.
Weaknesses
Scarce Outlets. Fewer Margins given to the Outlet owners to match the existing competitors. Less margin given to the retailer, so as a result retailer do not earn satisfactory profit.
Opportunities
There is a scope of business as there is a demand for dairy products. Sarvottam Dairy should open more outlets to get the maximum advantage of the demand. Need to put more stress in the face-to-face direct marketing to reach to the customers.
Threats
Increasing competition from the other brands. Strong marketing strategy by competitors by offering the discount coupons to consumers and providing healthy commissions to the retailers.
Findings
As per the data, we have seen that most of the customer i.e.50 feel excellent about the product. so it shown that, the product is good and well satisfactory from the customer point of view.
The most of the customer (64%) are also satisfied with the price level. but some customer (36% ) are says that, the price is comparatively higher.
Customer are well satisfied with the quality. 54% customer are highly satisfied with the quality.
Most of the customer came to know about the product through TV as a media.
The 80% customer says that, the product means amul milk is easily available on all retail shop. It shows the excellent channel of distribution.
Most of the customer ( 48% ) seen the quality and taste at a time of purchasing the product. so, dairy try to maintain high level of quality to attract more and more customers. Other seen price, brand name and packing of the product.
Overall 54% says that product is excellent and 28% says that the product is very good.
So, we can say that customer feels good and they are happy after that amul milk is really The taste of India
purchasing
the product. Amul milk is a leader brand in the dairy industry. At the end we can say
Suggestions
The dairy should take the step for reducing the price of Amul milk.
The some customers suggested to dairy should make improvement in quality and taste of the milk. So sarvottam dairy should take necessary steps.
The most of the customer seen quality and taste at the time of purchasing the milk. So dairy should always try to maintain good quality for increasing the customer satisfaction level. This should be helpful in future to attract more and more customer.
The dairy should try to organize customer welfare programme to actually know about their needs and wants. Finally, I have found most of customer said Amul milk is really THE
TASTE OF INDIA.
Conclusion
One of the basic in successful organization has been the mindset of not standing still, not resting on past laurels, but pushing harder and harder for profitability and growth. This seems to be true with Sarvottam dairy. By analyzing the survey finding it is concluded that Amul is a leader brand in the dairy industry.
Sarvottam dairy is a well known dairy who manufactures AMUL MILK. It is a well known dairy of the Gujarat. The dairy has good reputation not only in the market but also in the consumers. The companys main strength is that its quality and reputed brand name amul. Sarvottam dairy provides good quality of milk with the cheaper price assets compare to its competitors. Now a day in the dairy market the competition is arises, but the most of the people are prefers the products of sarvottam dairy mostly because of the strong brand amul. the most of the customer are satisfied towards the product,it shows positive result.
The Sarvottam dairy is a medium scale unit; it has wide market in the Bhavnagar district. At the end, I want to conclude that company should try to reduce the price and make some changes in the quality and taste of the milk. so that more and more customer are attracted towards them products.
In my training I observed that the dairy has good management and the staff of the company is very co-operative. So that the more number of consumers are attracted.
I am sure that the experience gained by undertaking this study will help me a lot in my future career. My sincere thanks to all the Sarvottam personnels who have helped us to complete this study successfully
Annexure
QUESTIONNARIE Topic : - Customer satisfaction towards Amul milk (Sarvottam dairy)
Name: __________________________ Occupation: _______________ Age: _____
Q.1 Feeling about the product amul milk. Excellent Good Very good Poor
Q. 4 Through which media you are come to know about the product? TV Hoarding Wall painting Other
CUSTOMER SATISFACTION TOWARDS AMUL MILK Q. 6 At the time of purchasing the product, which attribute attracted to you? Quality and taste Price Brand name Packing
Q. 7 How much Quantity usually do you Prefer? 500 ml. 5 liter 1 liter
Q. 8 As per your preference, their any changes required in quality and taste of the milk? Yes No
Q. 9 Problems faced by you due to the product. Never Sometime Rare Frequent
Q. 10 Give the Opinion Regarding the Product? Excellent Good Very poor Very good Poor
Q.11 Would you like to give any suggestion regarding the Amul milk?
Date: _____________
Signature:__________________
Bibliography
1. Books
C.R. Kothari, Research Methodology, second edition, Published by prentise hall of india pvt. ltd. Philip kotler, Marketing management,13th edition,published by prentice hall of india pvt. Ltd. Customer Satisfaction is worthless Customer loyalty is priceless Jeffrey Gitomer
2. Websites
www.customersatisfaction.com www.scribd.com
3. Magazine
4 ps of marketing