A STUDY ON

DISTRIBUTION CHANNEL
(A Study with Reference to VISAKHA DAIRY, Visakhapatnam)

A Project Report submitted to AU

University,
VISAKHAPATNAM in Partial fulfillment
of the requirements for the Award of the
Degree of
MASTER OF BUSINESS ADMINISTRATION
During the Year 2008-2010
Submitted By
Mr.Behara Rajesh Patro
Reg. No. 2085408035

Under the guidance of

Dr.P.SRINIVAS SUBBA RAO,M.COM, M.B.A,M.A,M.Phil, PhD,B.L,PG.D.C.S,
P.GD.Ex.M.M,M.I.M.A,HEAD OF THE DEPARTEMENT
MAHA RAJA COLLEGE OF P.G COURSES, DEPARTEMENT OF MANAGEMENT
STUDIES,
(Approved by AICTE, Affiliated to A.U,Govt.Of.INDIA NEW DELHI)
PHOOLBAUGH COLONY
VIZIANAGARAM
(2008-2010)

DECLARATION
 I hereby declare that this project report entitled “DISTRIBUTION CHANNEL” with

reference to VISAKHA DAIRY, Visakhapatnam, was prepared by me during the academic year

2008-2010 .

MAHA RAJA COLLEGE OF P.G.COURSES ,Vizianagaram. The project work is not

submitted to any other university or institute or published before for the award of Degree.

Station: vizianagaram

Date: (B.Rajesh Patro)

 ACKNOWLEDGEMENT

I am thankful to M.R.College of P.G.Courses Vizianagaram for Valuable and

insightful guidance, inspiration, support, clarification and the good suggestion, which have enable
me to carry out this project.

I am extremely thankful to Dr.P.Srinivas Subba Rao HOD of MBA DEPARTEMENT

M.R. COLLEGE OF P.G.COURSES, Vizianagaram who have also been a source of inspiration..

I am thankful to my company guide Sri Srinuvasarao, of Visakha dairy who has

provided me the valuable suggestions & tips for conducting the survey in my project.

I owe my gratitude and appreciation to the entire faculty of MBA Department

M.R.COLLEGE OF P.G COURESES VIZIANAGARAM .My parents and especially my friends for
cooperating and encouraging me during the course of the project.
 MAHA RAJA COLLEGE OF P.G. COURSES

DEPARTMENT OF MANAGEMENT STUDIES

PHOOL BAUGH

VIZIANAGARAM

CERTIFICATE

This is to certify that the report entitled “A STUDY ON DISRIBUTION CHANNEL “is being
submitted by MrB.Rajesh Patro, bearing Regd.No 2085408035 in partial fulfillment of the
requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION, A.U
is a record bonafied work carried out by him under my guidance and supervision. The results
embodied in this report have not been submitted to any other University/ for the award of any
degree.

Project Guide
 CONTENTS

Chapter-l

 Introduction

 Need of the study

 Objectives

 Methodology

 Limitations

Chapter-ll

 Dairy industry at glance

Chapter-III

 Company profile

Chapter-IV

 Detail study on distribution channel

Chapter V

 Interpretation & analysis

 Findings

Chapter VI

 Suggestions

 bibliography
INTRODUCTION

Indian dairy Industry - a profile

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to
entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest
growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy
processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the
galloping progress around the world. As he expands his overseas operations to India many
profitable options await him. He may transfer technology, sign joint ventures or use India as a
sourcing center for regional exports. The liberalization of the Indian economy beckons to MNC's
and foreign investors alike.

India’s dairy sector is expected to triple its production in the next 10 years in view of expanding
potential for export to Europe and the West. Moreover with WTO regulations expected to come
into force in coming years all the developed countries which are among big exporters today
would have to withdraw the support and subsidy to their domestic milk products sector. Also
India today is the lowest cost producer of per liters of milk in the world, at 27 cents, compared
with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of
milk production and increasing production in the country multinational companies are planning
to expand their activities here. Some of these milk producers have already obtained quality
standard certificates from the authorities. This will help them in marketing their products in
foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33%
per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the
greater emphasis on the processed foods sector and also by increase in the conversion of milk
into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000
million. Presently the market is valued at around Rs7,00,000mn

Background

India with 134mn cows and 125mn buffaloes, has the largest population of cattle in the world.
Total cattle population in the country as on October'00 stood at 313mn. More than fifty percent
of the buffaloes and twenty percent of the cattle in the world are found in India and most of these
are milch cows and milch buffaloes.

Indian dairy sector contributes the large share in agricultural gross domestic products. Presently
there are around 70,000 village dairy cooperatives across the country. The co-operative societies
are federated into 170 district milk producers unions, which is turn has 22-state cooperative dairy
federation. Milk production gives employment to more than 72mn dairy farmers. In terms of
total production, India is the leading producer of milk in the world followed by USA. The milk
production in 1999-00 is estimated at 78mn MT as compared to 74.5mn MT in the previous year.
This production is expected to increase to 81mn MT by 2000-01. Of this total produce of 78mn
cows' milk constitute 36mn MT while rest is from other cattle.

While world milk production declined by 2 per cent in the last three years, according to FAO
estimates, Indian production has increased by 4 per cent. The milk production in India accounts
for more than 13% of the total world output and 57% of total Asia's production. The top five
milk producing nations in the world are India ,USA, Russia, Germany and France.
Although milk production has grown at a fast pace during the last three decades (courtesy:
Operation Flood), milk yield per animal is very low. The main reasons for the low yield are

 Lack of use of scientific practices in milching.

 Inadequate availability of fodder in all seasons.
 Unavailability of veterinary health services.

DAIRY

A dairy is a facility for the extraction and processing of animal milk mostly from cows or goats,
but also from buffalo, sheep, horses or camels for human consumption. Typically it is a farm
(dairy farm) or section of a farm that is concerned with the production of milk, butter and cheese.

Terminology differs slightly between countries. In particular, in the U.S. a dairy can also be a
facility that processes, distributes and sells dairy products, or a room, building or establishment
where milk is kept and butter or cheese is made. In New Zealand English a dairy means a corner
convenience store, or superette—and dairy factory is the term for what is elsewhere called a
dairy.

As an attributive, the word dairy refers to milk-based products, derivatives and processes, and
the animals and workers involved in their production: for example dairy cattle, dairy goat. A
dairy farm produces milk and a dairy factory processes it into a variety of dairy products. These
establishments constitute the dairy industry, a component of the food industry.

Company profile

Company Name : Sri VijayaVisakha Milk Producers Company Ltd (Visakha Dairy)

Address : BHPV Post

 Level of Office : Head Office

Phone No : (891) 2517230 2517290

Website : www.visakhadairy.com

Industry : Food Processing/ Beverages

City : Visakhapatnam

State : Andhra Pradesh

Pin : 530012

Company Type : Industry Best

Total Turnover : 100-250 Crs

No. of Employees : 5001 & above

Sector : Private Sector

Mission Statement

Visakha Dairy is committed to enhance the Milk Procurement throughTechnical inputs by

providing Quality services to our Member Producers by ensuring economic viability to improve
socioeconomic conditions of our Members. Visakha Dairy is also committed to supply quality
milk and milk products to consumers. Our Dairy shall become top dairy in the country with its
inspired team of employees. We, the inspired Team of Employees are dedicated to Co-operation,
Honesty, Discipline & Time, Quality & Purity, Hard Working, Transparency, Trust & Belief on
Orianization, Mutual Respect, Skill Development & Education
Quality Policy

Visakha Dairy endeavors to be one of the largest processors of milk and manufactures of milk
products in India.  We are committed to provide hygienic, safe and nutritious products while
meeting the statutory and legal requirements to achieve customer satisfaction and in-turn to
improve the economy of our member producers.  To this effect the management is committed to
communicate, implement, maintain and continually improve the Quality and Food Safety
Management Systems Dairy.

Objective

Our main object is to serve the farmers and to give help to their economical development, and
provide Quality Milk & Milk Products to the Consumers.

MAIN OBJECTIVES:

To provide assured year and market for the surplus milk procured in the rural areas supply
wholesome milk and milk product to the urban consumer and to stimulate milk production
and to develop the required infrastructure.

FLUCTUATION IN THE SUPPLY OF MILK:

The first problem of this industry is the search of fluid mille the demand for milk products is
almost uniform throughout the country in all seasons in the year. whereas by and large milk
production is small and scattered .ltd that too is distinctly seasonal. The summer months of
April to July record acute shortage of milk while in winter or number to February. supply of
milk would be 200to 300 per cell higher. So the industry requires diversification or
production of milk foods and other production. This can be preserved and so throughout the
year.

IRRATIONAL PRICING POLICY:

The price of milk is determined on the basis of price in the open market, which in turn
determine the price of milk products. Such a price shift pattern does not help to build a
permanent, workable relationship between the milk schemes and the producers. unless the
producers are guaranteed a reasonable price on the a long term basis. her economy bound to
be affected adversely .thus the industry should provide an incentive price for milk to the rural
producer over and above their cost of milk production adversely. Thus the industry should
provide an incentive price for milk to the rural producers over and above their cost of milk
production.

TRASPORTATION:

The milk bulk collection are established in centrally located villages/provided head quarters
form where the bill return centers less than 10km.hence each ultra virus rays arrays their
own transportation from the villages to bulk centers and the dairy providing transportation
charges on the basis of quality .there is no problem in transportation in bulk collection.

QUALITY CONTROL:

Quality aspect of milk has not received much attention due to the general shortage of milk
.the quality of milk they supply is far from what is required or not according to the control
manager .

The planned dairying therefore should he provided.

Milk is the only single food item that fairly represents the complete human diet.

It has proteins and micro ingredient in India is identified with rural farmer as an essential
subsidiary to agriculture. The govt. started a dairy at Visakhapatnam, under the intensive milk
supply scheme in 1970-71 with a handling capacity of 6000 litters. now the present capacity 1.5
lack litter per day. With a view to utilized the resources from national co-operative development
council for the large scale dairy to meet the growing need Visakhapatnam city besides the small
marginal farmers and milk producers co-operative was registered covering the district of
Visakhapatnam and srikakulam govt. arrange finance to this union from NLDC to establish the
Visakha dairy with an initial handling capacity of 1.50 lakes liters expandable to 1 lakh liters its
expansion to 1.50 lakhes liters was completed by 1990.it has a polythene sachet packing system
for milk. The total investment on Visakha dairy was about RS 3 crores
 Need of the study

visakha dairy has a very image of supplying good quality of milk at reasonable price to the
consumers. It has a hugged turnover and profits and some other reason gave birth to many
privates dairies .as visakha dairy occupies a very important place in our state , a through survey
is made to know about the consumer awareness their , attitudes toward all the dairy products.

The purpose of production is consumption and one’s own purpose will be served only if the
consumer interests are attended to quality of service rendered by VISAKHA DAIRY ensures the
organization regarding customer satisfaction in their product . the aim of this study is to provide
an insight into the characteristics of the consumer markets, identify the possible source of
dissatisfaction , work toward handing complaints from consumer , which in turn help in
enhancing customer satisfaction and prevent dissatisfaction .

Keeping in view,the private dairies operation in vizag district milk market a thorough study is
also made to know about the distribution of the products on visakha dairy . which include a
study of various factors include process, quality , availability, packaging , taste usage time and
so on…..

OBJECTIVES

This study was conducted with an objective of getting an insight of present market share
achieved and steps taken to maintain it in vizag and in adjacent areas. This study emphasize on
the market stategy developed in order to meet the developing challenge in the market another
important objective of this study conduct is to know and understand the penetration of visakha
dairy in vizag and the suburbs as compared to others.

1. To study the perception of distribution towards visakha dairy milk and its products.
2. to find out the product wise demand toward visakha dairy milk products.

3. to identify the features that influence the customer for selecting their milk vendor.

4. to study the brand wise demand for the various of milk and milk products

RESEARCH METHODOLOGY

Population : finite(approx-15000)

Sample size : 150 (distribution are taken as the sample

Sampling technique : census survey

Fact expressed in quantitative from can be termed as “data”. Date may be classified either as
“primary data” or “secondary data”
Primary data :

The primary data is the data that is generated by the researcher for the specific purpose of
research situation at hand. It is the first hand information that researcher gets from various source
like respondents, analogues case situation and research experiments. or

The primary data has been collected from the distribution by supplying them the
questionnaire.

Secondary data:

Secondary data are already published data collected from some purpose other than one
confronting the researcher at a given point of time. the secondary data can be gathered from
various sources like books, journal, research agencies etc..

In this case the secondary information was collected from newspaper like “business line” and
“business magazines like “business today” and “internet”.

SOURCES OF DATA:

after the objective has been stated clearly ,the next task was to collect relevant data
regarding the research study. The data regarding the Indian and international diary scenario were
collected from the internet. And other relevant data were also collected from internet . although
there were some data from newspaper and magazines but the major portion was given by the
company i.e. the assistant manager of the respective departments.

Most of the data and figures were collected from the record of the company. In fact the above
collected data was not enough so there was need of primary source of data. So the primary data
involved data collected from few milk booth and from few consumers.
Data collection instrument:

The basic instrument used in collecting the data in this survey is the questionnaire. Apart from
that we had also gone through the record of the company. The data collection from the above
include:

1. data regarding visakha dairy .

2. data regarding the highest selling product.
3. data regarding the contribution of each product toward sales.
4. data regarding total sales and market shares of visakha dairy.
5. data regarding effect of promotional activity done by visakha dairy.
6. data regarding the consumer presumption about quality of milk availability of the
product and price of the product.
7. data about visakha dairy and competitors share in the market.

The questionnaire was prepared by us under the guidance of the marketing

manager of the visakha dairy. Although most of the questionnaires were useful
but some of the questions were not answered properly. Some question like high
recall rate and question regarding promotional activity were not answered
properly, perhaps the consumer had never though with that concern and interst.

Satifistical tools:

Due to the extension and welfare activities taken up by the visakha union, dairying has almost
became a main occupation for the milk producer in the drough districts of srikakulam,
vizianagaram , and Visakhapatnam especially where the rains are insufficient . there by the milk
procurement was surpassed the capacities of various levels of the dairy. There fore necessities
arouse for the expansion of the dairy capacity for handling the excess milk procured . for this the
following project were planned and under activities execution.

a) fat handling unit-II with ice back system refrigeration plant and butter deep freeze with
an estimated cost of RS 241 lakhs.
 b) Milk pouch packaging unit-II with cold store and plant room with an estimated cost of
RS 256 lakhs.
c) Uht /aseptic milk plant with preprocession and packaging machines on deferred payment
basis with an estimated cost of RS.848 lakh

Limitations

inspite of honest and sincere efforts by the researched there are bound to be certain discrepancies
and inconsistencies .again there were several limitation both statistical and non statistical within
which there research has been carried out. Some of the limitation felt and faced are;
1. the whole research study was carried out in vizag only .there fore the result may not be same
in zonal basis.

2. it was very difficult to generalized the main finding as the sample size was very small.

3. some of the finding have been taken in the research are based on opinion ,attitudes, feelings,
and perceptions its few respondents .so we cannot take for granted the opinions and presumption
of all the consumer.

4. the major limitation in this research study is lack of co-operation from few department heads
due to probably lack of time.

5. the research had to visit number of time to obtain required data.

CHAPTER-II

DAIRY INDUSTRY AT GLANCE

3.1. PROFILE OF THE VISAKHA DAIRY:

Visakha dairy is located on nh-5 opp.to bhpv at Visakhapatnam on the road from to
gjajuwaka. The dairy complex includes and inputs, effluent treatment plant, electrical sub station,
administration office, staff canteen and residential quarters.
The milk shed of sri Vijay Visakhapatnam comprised of three districts srikakulam,
vizianagram, visakhapatnam.these three districts are situated in the north eastern part of the
coastal area of Andhra pradesh state and considered to be backward for agricultural and
industrial development. The perennial sources of water was from irrigation through rivers lets is
also very much limited especially on visakhapatnam and vizianagaram diatrict.therefore, the
rural farmers belonging to small and marginal categories have necessarily to depend on some
other source of income for the livelihood.
The government after considering dairying as one of the best instrument for brining socio-
economic development in the rural areas has started a dairy with a handling capacity of 1000
liters per day in 1996. The union was registered under cooperative act in 1973. after observing
the success of the small dairy, the present new dairy was constructed with initial capacity 50,000
liters with an estimated cost of rs.1.37 crors with the assistance from NCDC, new Delhi and
procurement started increasing year by year by leaps and bounds. Thanks to the vision and
foresight of the founders, the visakha dairy, now covering 2744 villages in three districts in 50
villages in visakhapatnam districts in 1977 is now 2744 villages in three districts serving
2,07,925 no.of milk producers. This union is converted to mutually aided as at ,1995 with effect
from 08-07-1999 and name is changed as “sri vijaya visakha district mil producers mutually
aided cooperative union” the union is converted to company act .1956 with effect from 06-01-
2006 and its name is changed as “sri vijaya visakha milk producers company limited” the
production and procurment started increasing year by year with more participation of the rural
farmers. The handling capacity of visakha dairy has been enhanced from time to time as started
below.

1987-1989: 50,000 to 1,00,000 liters per day

1989-1990: 1,00,000 to 1,50,000 liters per day
1991-1992: 1,50,000 to 2,00,000 liters per day
2000-2001: 2,00,000 to 3,00,000 liters per day
2002-2003: 4,00,000 to 5,00,000 liters per day
2004-2005: 4,50,000 to 5,20,000 liters per day
2006-2007: 4,60,000 to 5,40,000 liters per day
 Organization structure

Board of management

Field Plants Marketing Finance Personal Mis Civil

operation project accounting project
Production Engineering&m Aps Quality Dispatch
aintaince control

TOP MANAGEMENT

   
Shri ADARI TULASI
Dr. D VENKATA RAO
RAO
MANAGING DIRECTOR
CHAIRMAN

Shri S
Shri S G B SANKAR RAO
SURYANARAYANA
BOARD DIRECTOR
BOARD DIRECTOR

Shri
Shri M RAMANA
B.G.N.M.V.S.SATYANARAYANA
RAO
BOARD DIRECTOR
BOARD DIRECTOR

Shri S
Shri S SATYANARAYANA
SURYANARAYANA
BOARD DIRECTOR
BOARD DIRECTOR

Shri A RAMANA
Shri S AMMALU
BABU
BOARD DIRECTOR
BOARD DIRECTOR

Shri D MALLU
Shri CH V RAMANA RAO
NAIDU
BOARD DIRECTOR
BOARD DIRECTOR
 Shri R RAMA
Shri K KATAMAYYA
KRISHNA
BOARD DIRECTOR
BOARD DIRECTOR

Shri B SANYASI RAO

Shri D GANGA
BOARD DIRECTOR

VISAKHA DAIRY UNION AS DECEMBER, 2006:

1 No. Of societies 886

2 No. Of women societies 67
3 No. Of MPAC’S 1791
4 No. Of milk chilling plants 6
5 No. Of flesh mixing plants 2
6 Union training centers 1
7 No. Of bulk cooling centers 74
8 No. Of milk collecting routes 50
9 No. Of veterinary routes 661
 10 No. Of emergency veterinary routes 19
11 No. Of women members 33245
12 No. Of animals vaccinated (triovac) 45000
13 No. Of cattle’s insured 27124
14 No. Of producers in societies 179146

Milk procurement
This union is procuring milk through a network of 886 primary milk producers cooperative and
1791 un- registered centers. The average daily procurement of the union during 2005-06 is
3,94,681liters per day and present procurement is 4,27,907 liters per day. The peak quantity
touched during the year 2005-2006 is 4,46,907 liters. This is another vital technical input activity
implemented with long vision to improve the milk procurement apart from procuring the day-to-
day available surplus.

MILK CHILLING CENTERS:

S. No Name of the center District Capacity
1 MCC narsipatnam Visakhapatnam 5000
2 MCC vizianagaram Vizinagaram 3000
3 MCC rambadrapuram Srikakulam 5000
4 MCC srikakulam Srikakulam 5000
5 MCC tune (lease) East godavari 3000
6 MCC kakinada (lease) East godavari 50000

Bulk cooling centers:

With a view to stand stiff in global competition, visakha union on the quality front
installed 74 bulk-cooling centers. Extension services are provided to educate and help the milk
producers in clean milk production, animal health and productivity.
S.no District Capacity
1 Visakhapatnam 37
2 Vizianagaram 8
3 Srikakulam 5
4 East godavari 24
Objectives:
1. There is time saving for the farmers in supply of milk to their respective village milk
collection center both AM and PM
2. The quantity of milk will be maintained by restricting the transits time.
3. The weighing and testing of milk will be done in the presence of the representative who
bring’s milk to the bulk cooling points,
4. The expenditure involved in transport of milk both times and will be reduced by 50% by
collection milk once a day through milk tankers
5. Feed mixing plant
1. Fmp amdalavalsa 30 mt/day
2. Visakhapatnam
 :

MARKETING

Milk Marketing

Visakha dairy is marketing milk under “VISAKHA DAIRY” brand in visakhapatna,

vizinagaram, srikakulam, east godavari, west godavari and khammam districts and in twin
cities of hyderabad and secenderabad through a wide network of 66 milk distribution routes,
about 3,000 retail points and 60 round the clock milk parlors.
During the year 2006-2007 average milk sale per day is 3,77,174.00
Liters of this 98%is in sachets and the rest 2% in cans, 4 variants of milk namely
homogenized toned milk, double toned milk, toned milk, and full cream milk is supplied to
market to cater to varying needs of milk consumers. While milk to individual consumers is
supplied through retail point either on advance payment by issuing monthly milk cards or on
day-to-day cash payments, on day-to-day cash carry system on credit depending on the duly
taking into account competition from other player in the market.
 To ensure extensive availability of milk with in the reach of the consumers and intensive
coverage of market, visakha dairy has established wide distribution and sales network by
appointing about 2,000 retailers. Visakha dairy milk retailers have to deposit two days sale
value of milk as security deposit at the time of appointment and have a remit the sale
proceeds on day to day for the quantity of milk supplied each day .the average daily sales of
the union during 2005-2006 are 3,20,263.00 liters per day and during 2006-2007 are liters
per day and 3,77174.00.
Products marketing:
Visakha dairy markets wide range of milk products through its own network of super
stockiest and retailers in visakhapatnam, vizinagaram, srikakulam, east god vary, west
godavary, and Krishna district and twin cities of hyderbad and secendrbad and through m/s.
matha federation in the rest of Andhra pradesh and outside Andhra pradesh. Products are
supplied to market strictly on cash and carry business.

Particular 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2007-

1998- 00 01 02 03 04 05 06 2006 08
99 -07
Milk sales 1387 152450 158000 170000 20260 23503 28096 32026 3771 395174
in liters (day 33 0 6 7 3 74
average)
Products
Ghee (in 7055 115015 542350 723569 42900 48085 54259 42183 7030 803030
kgs) 36 5 0 4 2 9 204 5
Smp (in 8161 120153 20360 114098 75000 41380 56135 19436 1574 16450
kgs) 9 4 5 8 8 3 2
Doodipada 2597 27003 30801 46103 56000 70167 81711 82501 9328 93528
3 2
Sfm (200ml 2778 291502 576586 716076 10150 13870 22723 33912 4057 406810
bot) 23 00 27 08 0 12
Butter milk 1736 250207 280955 440048 56000 59358 68207 19876 2633 290450
378 7 8 00 50 70 07 308 5
Curd (in 5695 11623 9238 39436 56000 12973 15596 20976 3404 450588
kgs) 81 09 35 871 1
Pannier in 179 2699 4649 10696 15600 30867 62632 10708 1364 150470
kgs 2 54
Rose milk 250 2848 3205 3500 3552 3524 3377
Uht milk 15823 41865 57995
53 9 44
Tp flavored 75219 36988 63400
milk
White butter 70000 15000 20997 27738 31510
70 60 65
Mostidhohi 3294 105 45
(in kgs)
Milk cake 33641 412 27
Badam burfi 10508 106 58
(in kgs)
Mysorepak 247
(in kgs) 9.5
Ice cream 128 92 165 32
(in kgs)
Shrikand (in 193 6 107 0
kgs)

Curd bulk: 10kg, 20kg, 30kg, and 40kg

Distribution network:

Total no. Of routes: 36

Total no. Of booths: 1650
No. Of booths having refrigerators: 650
Total no. Of booths with iceboxes: 350
Roadside booths: 650

Parlors: 425
Mil products retail outlets: 1800

door delivery

Channels of distribution
Personnel
 a) Milk VCD retailer/ agent consumer

(Insulated vehicle/ordinary)
Autos

b) Milk products VCD stockiest retailer

Consumer
(Insulated vehicles)

Booth management programme:

 At present around 30 to 35 milk booths comprises a single route and about 3 routes
comprises a zone/city officer area.
 Each city office is monitored by a city in change and under him the routes supervisors
and business development supervisors work.
 The division of marketing filed activity into city officer is providing to strengthen the
marketing activities on the whole and it helped in development of sales.
 Further meeting with the commission agents organized routes wise and zone wise
regularly to develop them in terms of working capital management and inter personal
communication.
 We are encouraging the both agents with monetary and no-monetary benefits.
 Incentives are being passed on to the supervisors on achievement of targets. Targets
will be fixed @10% increased of the previous year particular month’s sales.
Sales promotion activities:
As apart of sales promotion we are doing activities such as placement of hoardings in
important place, giving glow sign boards to retail outlets, wall paining at retail outlets, as
well as hop paintings, distributing banner and carry bags, press ads local cable television as.
FM radios advertising glow signboards distributing big size umbrellas, conducting
exhibition, trade shows, we are sponsoring some of the events where public particulars are
good. We are offering incentives to our commission agents as well as our filed staff on
achievement of targets.
1. Hoardings
2. Glow sign boards
3. Painting
1.wall paint
2.tea stall painting
3.structure painting
4. Banners flute boards
5. Garden umbrellas
6. Advertisements
a. Press advertisement
b.local cable ads
c.calender
7.corporation film
8.gifts&incentives to door delivery persons
9.gifts&incentives to agents
10.glow signboards
11. FM radio advertisements
Major projects:
Powder plant:
As the recipients of milk exceeded the 2,00,000 liter per day capacity and the peak
procurement was reached to the level of 2,14,000 liter during the 1992,whereas the local
liquid milk sales in about sales in about 1,00,000 liter per day and in order to convert the
surplus milk into milk power, a milk power factory with a capacity of 13 MT per day with a
capacity outlay of Rs. 7.00 crores was constructed and started commissioning from may,
1998.

Uht plant/aseptic packing station:

With a view to diversity the product range for capturing the new market, the value
added premium, product of aseptic milk/flavored milk fruit juice packing, an aseptic
packaging station (UHT plant) was established.
Milk prochI filling unit-II
As a present 2.00 lack liter of milk is being packed in pouches to meet the local sales
demand with considerable constrains. The existing milk cold storage capacity is limited to
the minimum capacity of 70000-lt.only .it is also required renovation. Keeping in view of the
future of the demand, it was proposed to strengthen the pouch filling facilities to pack up to
2.50 lakh liters of milk per day with sufficient milk cold store and required refrigeration plant
with an out lay of Rs.256 lakes.
 CHAPTER-IV

DETAIL STUDY ON DISTRIBUTION CHANNEL

Sri vijaya visakha district milk products company Ltd.

PREAMBLE;

The milk shed of sri vijaya visakha company union LTD of milk products.

Visakhapatnam is comprising of distributes districts areas srikakulam,

vizayanagaram, east &west Godavari and visakhapatnam.

These districts are situated in the northeastern part or the coastal areas or Andhra Pradesh and
considered to be backward for agriculture and industrial development. the srikakulam district is
declared as the backward for the industrial development and government has sanctioned subsidy
and also exemption for perennial sources of water for irrigation through rivers and river lets.

There fore the rural farers mostly belonging to small and marginal categories have necessarily to
depend on some other source of income for their livelihood.
These districts are situated in the northeastern part or the coastal areas or Andhra Pradesh and
considered to be backward for agriculture and industrial development. the srikakulam district is
declared as the backward for the industrial development and government has sanctioned subsidy
and also exemption for perennial sources of water for irrigation through rivers and river lets.

Again the necessity to increase the capacity from 1,00,000 to 15,00,000 liters per day since the
installed capacity was reached in a short time. The union has increase the purchase once of the
milk to a reasonable level comparing with the other advance state like Gujarat.the reasonable
price gave very good impetus for the rural farmers for adding more animals to there stock of
milk animals and also to take of up dairy as a fresh occupation for the new farmers there by. The
procurement had surpassed very much to the level of the sale of liquid milk and hence ways and
means were searched to dispose of the surplus liquid milk which over the above the local liquid
sales.

In this process milk distribution to other states like west Bengal. Orissa and Calcutta as per their
requirement. Subsequently milk was sold to raipur dairy in Madhya Prasad. Even after the
disposal of the surplus milk to other states. Need arise to conserve the remaining surplus milk by
sending it to powder factor, Vijayawada as the procurement increased very much in a short
period. Surpassing the liquid milk sales locally and also outside states. Hence the handing
capacity of visakha dairy was increased again to 20,000 ltd .per day and the expansion program
was completed during 1992.

As the receipts of milk exceed the 20,00 ,222 liters per day capacity and the peak procurement
reached to the level of 2,14,000 liters during the year 1992.liters where as the local liquid milk
sales is about 10,00,000 per day.the surplus milk is to be converted conversion, the surplus milk
is being sent to Vijayawada by incurring heavy into product on the process or expenditure on
transport alone involving a risk of long distance transportation of the highly perishable products.
In addition huge amount were paid MPF Vijayawada.

The government after considering dairying as one of the best instrument for brining socio-
economic development in the rural area has started a dairy with a handling capacity of 10,000
liters per day in1996.dairying not only creates subsidiary occupation to the rural formers by
creating responsible market price for his produce at his door step but also meets the demand or
the urban consumes for the supply of hygienic quality will at reasonable price. After observing
the success or the small dairy, the small dairy the present new dairy was constructed with an
initial capacity of 50,000 liters per day taken a loan of 98.50 lakh from NDDB& he dairy was
registered under co operative society action 1973 and established in1977.at the initial stage. The
area of operation was limited to Visakhapatnam distrect only. the farmers took lot of interest in
dairying after realizing it as the subsidiary occupation as it is giving them regular income for
there lively hood. with the above result, more and more small, marginal farmers and agricular
labors joined in this stream for increasing there economy at village level utilizing the instructed
available at there doorsteps. when the A.P.State has adopted “anand pattem” for dairy
development through operation flood programmed this dairy has also developed cooperative
federation limited at apex level at srikakulam vizianagaram and Visakhapatnam was formed
under the name or sri vijaya visakha distrect cooperative milk producers union limited during the
year1981-82 .

As the production and procurement started increasing year by with more participation or rural
fanners with more enthusiasm ,the handing capacity of visakha co-operative dairy also increased
form 50.000 liters to 1,00,000liters per day which came into operation during the year 1986-87.

The production and procurement started increasing year byyear with more participation of the
rural farmers. The handing capacity of visakha dairy has been enhanced from time as stated
below.

1986.87 - 50,000 to 1,00,000 liters per day.

1989.90 - 1,00,000 to 1,50,000 liters per day.
1991-92 -1,50,000 to 2,00,000 liters per day.

Procurement:

This union is procuring milk though a network of 800 primary milk producer co-operative and
766 unregistered centers across three districts. The average dairy procurement of this union
during 2007-2008 is 5 lakhs .this is another vital activity implement with long vision to improve
the milk procurement a part from procuring the day available surplus.

MARKET ING STRATEGIES:

 All marketing strategy is built on STP- segmentation targeting and positioning. a
company discovers different needs and groups in the market place, targets those needs
and group that it can satisfy in a superior way and than positions its offering so that the
target market recognized the companies distinctive offering and image.if a company does
a poor of positioning .the market will be confused as to what to expect if a company does
an excellent of job of positioning . then it can work out rest of its marketing planning and
differentiation from its positioning straggly

POSITION is the act of designing the companies offering and images to occupy a distinctive
price in the mind of the target market. The end result of position of the successful
creation of a customer focused value proposition a cogent region by the target market
should buy the product.

A company must decide how many ideas to convey in its positioning to its target customer many
markets advocate promoting only one central benefit. Rosser reeves believes a company
should developed a unique selling proposition for each brand and stick to it .crest
toothpaste consistently promotes its anticavity protection,and Mercedes promotes it great
engineering. Reis and trout favor one consistent position message this makes for easier
communication to the target market it results in employees being clear about what counts
and it makes easier to align the whole organization with the central positioning.

The breand should tout it self as “number one” on the benefit it select number one positioning
include “best quality”, “best performance” ,”best service”, “best styling”, best value”,
“lowest price”,”safest”, “fastest”, “most customized”,”most convenient”, “most
technological”,”most reliable”, or most prestigious”, if a company consistently hammers
away at one position and delivers on it ,it will probably the best know and recalled for
this benefit.

As companies increase then no.of claimed benefits for this brand, the risk this beliefs and loss of
clear position .in general the company must four major positioning errors.

1.UNDER POSITIONING:

Some companies discover that buyers have only a vague ideas of the brand. The brand is seen as
just another enter in a crowded market paces. When pepsi interduced its clear crytal pepsi
in 1993,custmors where distinctly unimpressed. They did not see clarity as an important
benift in soft dink.

2.OVER POSITIONING;
Buyer may have too narrow an image of the brand.

Thus a customer might think that diamond rings at tiffany statrt at $5000 when in fact tiffany
now offer affordable diamond rings staring at $1000.

3.CONFUSED POSITIONING

Buyer might have a confused images of the bank resulting from the companies making too many
times or changing the band’s position to frequently. This was the case with Stephen job’s sleek
and powerful next desktop computer. Which was positoned first for student then for engineers
and then for business people,all successfully

4. DOUBTFUL POSITIONIN:

Buyers may find it hard to believe the brand claims in view of the products features. Price or
manufactures then Gm’s Cadillac division introduction the Cimarron, it positioned the car as a
luxury competitor

With bmw, Mercedes and audi although the care featured leather seats,a luggage rack lots of
chrome and a Cadillac logo stamped on the chassis customers saw it as dolled of version of a
chevy’s cavalier and olds mobiles’s firenza. The car positioned as “more for more” customer
saw it as “lets for more”.

Solving the position problem enables the company to solve the marketing mix problem. Seizing
the “high quality position” required the film to produce high quality products. Charge a high
price distribution through high-class dealers, and advertise in the quality magazines.

Marketing:

At present we have total number of 1250 milk booths, out of which 500 outlets are selling milk
and milk products round the clock.

Visakha dairy supplying milk products in the district of north coastal Andhra .srikakulam,
vizianagaram, Visakhapatnam, Kakinada, and tuni also in east &west Godavari district. at the
recently to transporting other state in bhubeneswara and bharampur. Visakha dairy is distributing
milk through 30 routes for a wider coverage and accessibility of the public visakha dairy has
been doing all sorts of sales promotion activities with innovative ideas for the development of
milk market .
1. Promotional activities:

a) Hoarding.
b) Glow signboards.
c) Wall painting.
d) Banners and carry bags.
e) Press advertisements.
2. consumer education program: test your milk.

3. training to field staffs: To up grad the skill.

4. milk production are being sold through distributors.

HR FUNCTIONS

Technical input activities:

a) animal health care.

b) Artificial insemination
c) Feed and fodder activities

Training centre

This union has its own union training center funded by NDDB, to cater the need of the society
personnel and farmers on various activities.

Bulk cooling centres:

 the unique feature of this union on quality front has established 22 BCC s covering procurement
of 40,000 liters per day during the year 2000-2001 and with a view to compete the present
global competition under world trade organization agreement of government of India.

WELFARE MEASURES TO THE FARMERS&EMPLOYEES

The union has constituted a trust by name “milk producer & employees education ,heath &
medical welfare trust” in the year 1989 with an objective to provide education ,health, medical
services to milk producers and employees of the union.

Cash-component up to maximum RS 10,000/- in case or natures death of milk producer.

FINANCE FUNCTIONS:

Finance and accounts:

The financial operation of visakha dairy ,in Visakhapatnam has been increasing with a
remarkable growth rate year by year from

1995-1996to 1999-2000 with almost double from RS 63.00 to 121.00 crores. The purchase price
of the milk also been year to year and reached 170 kgs fat. This union is also in the habit of
passing differential price since 1981 onwards upto reporting year.

Milk powder plant :

As the receipt milk exceeded the 2, 00,000 lakhs liters per day capacity and the peak
procurement was reached to the level of 2, 14,000 during the year 1992, where as the local liquid
milk sales is about 1,00,000 per day, the surplus milk is to be converted into products. For this
process of conversion the surplus milk is being sent to Vijayawada by incurring heavy
expenditure on transport along involving a risk of long distance transportation of the highly
perishable products.

In addition huge amount were paid to MPF Vijayawada toward conversion changes of the SMP
basing on the above facts the circumstances lead to establish a milk powder factory with a
capacity of 13 Mts per day at Visakhapatnam with a capital outlay of RS7 cores which was
commission during may 1998.

Good milk :

Visakha dairy good milk to produce in tetra pack packages. It is health and fresh. Its packages
assure you complete nutrition protection. It some points are there.

1. Flash heat treated, which means 0% bacteria. It works like double pasteurization to kill
germs while preserving nutrition.
2. Freshness retained as milk is free from bacteria. Presence of bacteria, which feeds on the
nutrients of milk, affects freshness.
3. 100% pure. It’s no needed milk powder, preservative or chemicals.
4. Long shelf life, convenient to use any where any time. Special six layer packaging
protects the milk form harmful germs, air, and light. U.V. rays, to ensure that it stays for
30 days (when not opened).
5. fortified with vitamins A & D.
Provides nutrients essential for good health.

6. Safe and nutritious particularly for children. As milk is nutrition protected. Bacteria free
and fortified with vitamin A & D.
7. Needs no refrigeration till pack is opened.
Once opened it need to be refrigerated and has the normal life of regular milk.

8. No boiling required. Ensures there is no nutrition loss right up to consumption.

Products:

Issachar dairy is organization, which is completely involved in providing services to the

customers and through formers from whom milk is being procured. Though it is a profit oriented
firm yet it is charging only reasonable amount from the customer for their products being sold.
Visakha dairy is improving and increasing many product varieties day by day.

The products of visakha dairy are numerous. they are producing all possible products, which can
be made out of milk. The basic products of visakha dairy are butter milk, lassi, cooking butter,
curd, ghee, flavored milk , doodthpeda, mysore pak, milk cake, badam burfi, paneer, misti doi,
kalakanda.etc….

MAJOR HIGH LIGHTS OF VISAKHA DAIRY:

1. this union has established a welfare trust for the milk producer and employees for
education and heath. It constructed a school and junior college running with strength of
872 studdent.

2. constructed a 60 bedded hospital.

3. natural death welfare scheme for the milk producers

4. implementing gopal raksha scheme for the welfare of cattle and milk producers.

5. construction of small bridges on rivers and vaggus under janmabhoomi programs at

c.bhogapuram.p.p.agraharam and kailasapuram.

6.
desilting of irrigation tanks by visakha dairy.

7.
digging of bore \veils for drinking water for formers and their cattle.
 8. constructed reservoir at karaka village in butchayyapeta mandal under janmabhoomi
programme.

9.
construction of milk collection buildings under janmabhoomi programme,which is major
mile stone.

To wards conversion charges of the SMP. Basing on the above facts the circumstance lead to
established a milk powder factory with a capacity of 13 f’v ltrs per day at visakhaptnam with a
capital outlay of RS 7.00 crores.which was commissioned during mar 1998.

MISSION AND OBJECTIVE OF VISAKHA DAIRY

1. to serve the people concerned with VCD such as consumer, milk

producer,member and employees.
2. to deliver best quality of milk and milk products at reasonable rates 10
maintain the leadership in the milk market.
3. to achieve market leadership in the area of milk products.

UNIQUE ACHIEVEMENT;

Vcd stands second in milk prosurment and sales after anand dairy. Vcd is the
market leader in visakhaptnam.

STRENGTHS AND WEAKNESS;

Vcd motives 70 year of the consumer of Visakhapatnam la consumer visakha

milk.
Efficient procurement and physical distribution systems.Regular prompt and timely supply of
milk and milk products at its own parlour and retail outlets.

WEAKNESS

1. Vcd is not able to meet the demand of the milk products due to less allowance
of milk to process the milk products.

2. in effective promotional activities arc less effective.

LOCATION OF THE DAIRY;

Visakha dairy company ltd was located on the national highway no.5,which is
opposite to BHPV LTD .another dairy plant is at vizayanagaram.

DAIRY ACHIEVEMENT:

Visakha dairy got very high market share for its

a) quality
b) good team work
c) Promt delivery in time

MARKET LEADER:

Visakha dairy is the leader in milk industry and got a very high market share of
about 80%.
TECHNOLOGY:

Visakha dairy is using foreign technology for milk production such as

pasteaurisers,bulk coolers,etc..

FUNCTIONAL DEPARTMENT OF DAIRY MARKETING

Marketing department of any organization plays a vital role. Visakha dairy is having efficient
marketing personal. The main functions of the marketing departments as

 the 1st and foremost job of the marketing personnel is identification customer to their
products.this can be through market serveys.

 Along with identification of the customer the marketing personnel have identify the needs
of the customer i.e what are the features quality and size,prose are expected from the
products.

 Next important function is the genation of the business. Can be done by education the
buyers about various.this function features and advantages of the dairy products as
compared to competition products and explain the cost benefits and qualities and
products. This is can be done through using various sales promotion tools such discount
 coupons,promotional litters and advertising through various media and through direct
marketing.
 The nest task of the marketing department is to supply the prodpuct accurately at right
time.

SIZE OF THE MARKET:

The size of the milk market is very wide. Presently the milk is available in various brands in
the market. The dairy’s milk is having a market share of 85% by maintains good quality
lind cost when compared to other competitor’s.

MARKET SEGMENTATION:

People living in the different places may vary in their buying of the same product. The dairy
segmenting the milk market by selling mixed milk only in srikakulam and toned ,whole
milk in all other places.

MARKET INFORMATION

Visakha dairy has appointed efficient marketing personnel for collecting all the market
information of its products and its competitor’s products.

PRODUCT DEVELOPMENT:

Product development is due of the important task of the dairy will watch the day-by-day
development in milk market necessary changes in its product mix to meet the requirement of the
buyers. The development may be relating to the quality,size, features, packing, or exiting
products the development of new product. In this process, visakha dairy recently developed
“good milk” which was introduced in the market with vijaya brand name.

Range of milk &milk products:

Milk : W.M- T.M,HTM-DTM

(200ml,500ml,1000ml)

UHT MILK :1Lts, 500ml.&200ml

(DTM, TM, STM)

GHEE : 15kg.tins,200ml,500ml & 1LT

Tetra S.F.M : chocolate, badam,pine apple .

BUTTER MILK : 200ml

LASI : 200ml

CURD :100grms,200grms,500gr;
MISHTI DOI :100grms;

PANEER :200gr, 500gr ,1kg;

DOODH PEDA :25gr, 250gr;

BURFI :250gr.500gr:

MILK CAKE : 250gr, 500gr;

MYSOREPAK :250gr,500gr;

CHAPTER V

ANALYSIS AND INTERPRETATION OF STUDY AND FINDINGS

BUYING PATTERN OF THE CONSUMERS

Buying Pattern % of consumers

Milk Booth 38
Door Delivery 31
Kirana shops 24
Dept stores 1
Local Vendors 6
Parlors 0
Interpretation :The above graph shows the buying pattern of the consumers. We observed that
majority of the consumers buy the milk from milk booths while very few from dept stores. 24
percent of the customers buy the milk from kirana shops where as 6 percent of the customers
were buying from local vendors.

THE QUANTITY OF MILK USED PER DAY

Quantity Percentage
5 to 2 Ltr 85
1 to 2 Ltr 13
Less than 0.5 Ltr 2
Interpretation:We observed that 85 percent of the consumers were using the milk of quantity 0.5
to 1 litre where as 13 percent of the consumers are using milk of quantity1to 2 litres and only 2
percent are using less than half litre.

THE PRICE OF MILK THAT CONSUMERS ARE USING NOW

Price per Ltr Percentage

22 36
18 56
17 8
Interpretation:

It is observed that 36 percent of the people were buying the milk per litre for Rs 22 and 56
percent of people were buying the milk per litre for Rs 18.Only 8 percent of the people were
buying the milk per litre for Rs 17. So majority of people were buying the milk for Rs 18 per
litre.

AWARE OF MILK PRODUCTS

Product Percentage
 Milk 100
Curd 100
Butter Milk 44
Sweets 22
Ghee 14
Flavored Milk 5

Interpretation:
Almost every customer knew about the milk and curd of Visakha Dairy. Buttermilk was the
second most known product i.e., 44% knew about it. Flavored milk was known to very few
customers only.

THE FACTOR THAT MOTIVATES THE CONSUMERS TO BUY THAT BRAND

Factor Percentage
Taste/quality 75
Easy availabilities 10
Packing Design 7
Advertisements 8

Interpretation:

It is observed that 75 percent of the customers consider the quality where as10 percent consider
easy availability of the product ,8 percent advertisement and 7 percent consider packing/design.
 HAVE YOUEVER USED VISAKHA DAIRY PRODUCTS

Percentage
Yes 82
No 18

Interpretation:The total sample size was 150 customers, In that 82% of customers answered that
they have used the Visakha Dairy products. But only 18% of people said no.
 MONTHLY INCOME OF THE CUSTOMER

Monthly Income Percentage

1000-5000 14
5000-10000 66
10000-15000 12
More than 15000 8

Interpretation:

The market survey revealed the income of the customers as follows.66 percent of the customers
are earning 5 to 10 thousand rupees per month, where as 14% are earning 1 to 5 thousand rupees
per month, 10 to 15 thousand rupees per month are 12% .The customers who are earning more
than 15 thousand rupees per month are 8%.
 Are you selling milk products?

Opinion No of Respondents Percentage

YES 135 90%
NO 15 10%
TOTAL 150 100%
Interpretation:

From the above we can derive at the maximum percentage i.e.,90% of the respondents are selling
milk and milk products and 10% of the respondents are not selling milk and milk products.

How long have you been these milk products?

Years Percentage
10 37%
5 21%
3 17%
2 15%

Interpretation:

From the above it is observed that 37% of retailers are selling Visakha dairy from 10 years,21%
of the retailers are selling visakha dairy from five years, 17% of retailers are selling Visakha
dairy from 3 years, 15% of retailers are selling Visakha dairy from 2 years.So we concluded that
majority of the retailers are selling visakha dairy products for the quality.

How is the quality of Visakha dairy milk products?

Good 47%
Satisfactory 36%
Poor 7%

From the above it is evident that 47% of Retailers say it is excellent in quality, 36% of Retailers
say it is satisfactory , 7% of Retailers say it is poor in quality.
What is your opinion about the price of Visakha dairy milk products?

Price Percentage
HIGH 9%
RESONABLE 57%
LOW 245
From the above it is evident that 57% of Retailers say it is reasonable in price,while24% of
Retailers say it is high in price and9% say it is low in price.

Has Visakha Dairy provided any cold chain facilities?

Yes 77%
No 13%
From the above it is evident that 77% of Retailers say Visakha dairy provide any cold chain
facility, 13% of Retailers say Visakha dairy does not provide any cold chain facility

How often does Visakha Dairy marketing people visit your premises?

Daily 39%
Alternative days 20%
Once week 9%
Twice a week 10%
Fortnightly 7%
Monthly 5%
From the above we can evident that 39% of visakha dairy marketing people visit premises daily,
while 20% on Alternatives days, while 9% once a week and 10% twice a week and 7%
fortnightly and 5% monthly.

Which product has a maximum sale?

UHT Milk 37%

Butter milk 23%
Curd 12%
 Lassi 10%
Other 18%

The sales analysis of Visakha dairy products shows that 37% of customers buying UHT
milk,23% buy butter milk,12% buy curd and 10% buy Lassi and other products.

Are you satisfied with commission offered by Visakha dairy to sell their products?

Yes 73%
No 17%
From the above it is observed that 73% of the retailers are satisfied with commission offered by
visakha dairy.

Our opinion about the present distribution channel of visakha dairy?

Excellent 21%
Good 47%
Satisfactory 13%
poor 9%
In the above graph47% of the retailers are saying that the distribution channel of visakha dairy is
good,21% of the retailers are saying that the distribution channel of visakha dairy is excellent. In
the above graph13% of the retailers are saying that the distribution channel of visakha dairy is
satisfactory. In the above graph9% of the retailers are saying that the distribution channel of
visakha dairy is poor.
 Have you face any problems with he products of visakha dairy?

Yes 18%
No 72%

In this majority of the retailers are not having problem with the products of visakha dairy.
 Are you satisfy with the promotional scheme offered by visakha Dairy?

Yes 74
No 26

In this74% of the retailers are satisfied with the promotional schemes offered by Visakha dairy.
 Specify the milk products which you are selling?

Milk 47%
Curd 15%
ButterMilk 10%
Badam milk 13%
Lassi 5%
The sales analysis of various Dairy products shows that47% of customers buying milk, 15% of
customer buying curd, 10% of customers buying buttermilk, 15% of customers buying badam
milk and 5% of customers buying Lassi and other products.

Do you have any cold chain facilities?

Yes 67%

No 23%

From the above it is evident that 67% of Retailers have cold chain facilities and 23% Retailers
have no cold chain facilities
 How do you place an order for the stock?

Over the phone 7%

Send a person 27%
Through sales vehicles 9%
Representative of vd, Collects the 47%
indent
From the above it is evident that 47% of retailers say that Representative of visakha dairy
collects the indent, while 27 send a person and 9% through sales vehicle and only 7% over the
phone.

How fast do you get the stock?

Same day 37%
Immediate receipt of the day 23%
Next day 20%
After 1 day 7%
After 2 days 3%
From the above it is evident that 37% of retailers say that they get stock on same day while 23%
retailers say immediate. Receipt of the order, 20% says next day and 7% say that after 1 day
and3% after two days.
 Findings of the study

 Majority of the visakha dairy distributers are satisfied with the promotional schemes
offered by the Visakha dairy.

 More than 84%of the Distributers are satisfied with the commission offered by Visakha
dairy.

 Most of the Distributers are giving preference for quality and regular supply among the
various factors for selling milk.

 Visakha dairy milk products are having maximum sales.

 Maximum numbers of distributers are saying that they face leekage problem rarely.
 CHAPTER VII

SUGGESTIONS AND BIBILOGRAPHY

 Suggestions

 It was observed that majority of the people are buying the milk from milk booths. So its
better to improve the services to the customers in milk booths.

 Most of the customers were using half liter per day, very few customers were using
more than one liter of milk per day.

 From research we find that majority of the people were buying the milk for Rs 18 per
liter .So its better to improve the production of milk for Rs. 18 in order to satisfy.

 Out of 150 samples,all the people were aware of Visakha Dairy. Next to Visakha Dairy
was the well known brand. So we find that Visakha Dairy was a well known and a
notifed brand.

 Among all the brands of milk products maximum people were using Visakha Dairy
products. After this Heritage was the well known and competitive brand for Visakha
Dairy. In order to maintan its market shares Visakha Dairy. In order to maintain its
market share Visakha Dairy has to maintain its quality.

 Taste/quality was one of the factors the customers to buy the particular brand. Easy
availability and advertisement were also one of the factors to buy the particular brand
products.
 The market survey conducted by me has reveled that most of the people were aware of
Visakha Dairy milk and milk products.

 One of the advertising media followed by the Visakha Dairy was paintings. This has
occupied a great position in crating awareness of the Visakha Dairy brand. So it’s
necessary to take care on paintings. Addition to these banners were also playing an
important role an important role in awareness brand. The role of newspapers, hording,
pamphlets were very less.
6.3.summary

Inspire of all the above inadequacies, which are highlighted in the suggestions the
visakha dairy has a good brand image and brand loyalty among the customers. All the
employees are target-oriented in their respective fields. They created a congenial working
environment and working with co-ordination to achieve the ultimate targets of the
visakha dairy.

The organization should motivate its commission agent to the almost possible extent to
it .it has to develop its promotion activities. New methods of advertising i.e. using the
media of advertising more efficiently and innovatively should be done. Customers should
be made aware of the product mix of visakha dairy and other products, which they are
selling.
6.4.BIBILOGRAPHY

Marketing management: Philip kottler

Marketing management: ramaswamy &namakumari

a brief note on vcd :internal records of the dairy

information gathered though internet web sites are:

www.discovermik.co.uk

www.apdairy.com

www.dairy .com
6.5. questionnaire

Questionnair to the customers

Name:

No of family members:

Occupation:

Questions

1.which brand of milk are you using? ()

a.visakha dairy b.dolphin c.heritage

d. Ajay e.city milk f.kamadhenu ()

2. Are you aware of the variety of products of visakha dairy? If yes specify

a. milk b. ghee c.doodh peda d.flavoured e. lassie f. buttermilk g. milk powder

3.which of the products are you using regularly? (

a. Milk b.ghee c. doodh peda d.flavored

milk e. lessi f. buttermilk g. milk powder

H.cooking butter.

4. What do you feel about the quality of the milk/milk product of visakha dairy?

a. Good b.satisfactory c.low

5. How would you availability of products of vcd?

()
 a. Good b. satisfactory c.low

6. Have you come across of vcd?

()

A. Hoardings b. TV c. news paper d. painting e.sign boards f. exbitions

7.do you thing that any schemes are require to increase sales? If yes, any recommendation

8.do you thing the ads are having recall rate? (

)

A.yes b. no

9.should more information be mentioned in advertising?

()

A.yes b.no.

10.hoe much quantity of milk do you use daily?

()

A.1/2 lts b.1 lts c.1 lts to 2 lts d. 2 lts to 3 lts

11.which factors do you consider to purchase milk? (

)

a. Quality b.price c.packing d. easy availability e. timely availability

12. Which brand do you purchase regularly? (

)

a. Local vendor b. revathi c.heritage d.visakha dairy e.city milk f. Vijay

13. Do you with visakha dairy to introduce any new product?
()

14.are you satisfied with the services offered by the visakha dairy?
()

A.yes b. no.

15. Any complaints

a. Shortage in quantity

b.door delivery

C.spoilage

d.leakage

E.booth agents

16.any suggestion to visakha dairy?

QUESTIONNARE TO THE BOOTH AGENTS

Name:

Place:

Booth number:

Questions:

1.which brand of milk are you selling? ()

 a. Visakha dairy b.dolphin c.heritage d.city milk

2.what are the products you are selling? ()

a. Milk b. ghee c. dood peda d. lassi e. buttermilk f. milk powder

3.quantity of sales of milk?

Brand Morning Evening

4.are you facing any problem with company regarding?

A.leackage

b. Less quantity

C.spoiling

D.receiving order in time, etc.