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This is to certify that Mr.GAGAN KUMAR GOEL has done the SUMMER TRAINING PROJECT entitled CUSTOMER SATISFACTION FOR VERKA PRODUCTS under my supervision for the fulfillment of the degree of BACHELOR of Business Administration. The work done by him/her has not been submitted elsewhere and is a part for fulfillment of MBA degree.



My training period from 8th may to 30th june 2012 has been a profile experience and therefore am very pleased to present this report on my summer training in Chandigarh. I acknowledge with gratitude my thanks to MR. R.Deora,Manager marketing ,for accepting me as a summer trainee and for providing me with the expert guidance during the course of my training. I express my hearfelt gratitude to my project guide MS. Harleen kaur for her consistent direction,guidance and supervision,which has led to the succesfull completion of the project.It was a pleasure to have her as my project guide.

My sincere thanks to MR. R.Deora,Manager Marketing

Also ,my special thanks to my institute for their constant help and encouragement throughout the project. Last but not the least ,I wish to thank all my respondents who spared there precious time out of there busy schedules.



TABLE OF CONTENTS Chapter I- Introduction to Project


7 9 37 39 43 53 54 57

Chapter -2- Review of literature


Chapter-3- Research Design


Chapter -4- Analysis & Findings


Chapter-5- Conclusion

Chapter-6- Recommendations

7. 8.



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

Table name
Source of milk Usage of verka products Kind of Product used Duration of usage Affordability Packing of products Taste of products Quality of products Cream content of milk Advertisement Like to buy verka products

Table Number
5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11

Page No.
45 46 47 48 49 50 51 52 53 54 55



Figure Name

Figure Number

Page No.

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

Source of milk Usage of verka products Kind of Product used Duration of usage Affordability Packing of products Taste of products Quality of products Cream content of milk Advertisement Like to buy verka products

5(a) 5(b) 5(c) 5(d) 5(e) 5(f) 5(g) 5(h) 5(i) 5(j) 5(k)

45 46 47 48 49 50 51 52 53 54 55


The Punjab state co-operative Milk Producers Federation Ltd. Popularly known as MILKFED Punjab came into existence on 1st December 1973 with the twin objective of providing remunerative milk market to the milk producers in the state by value addition and marketing of produce on one hand and to provide technical inputs to the milk producers for enhancement of milk production on the other hand. The setup of the organization is a Two-Tier system.Milk producers Cooperatice Societies at the village level ,eleven Milk Unions at the District Level and the Federation as an Apex Body at the State Level.Milkfed Punjab has continuously advanced towards its covered objectives well defined in its byelaws. Although the Federation was registered in 1973 but it came into its real self in the year 1979-1980 and at that time there were 448 Milk Producers Cooperative Societies at the village level with membership of 310000.The average Milk Procurement during that year was 70000 litre per day. The State was covered under Operation Flood in the year 1983 to give the Farmers a better deal and our valued customers better products.The turn over of the Federation along with its affiliated District Co-op.Milk Union was Rs. 523crore during the year 19992000.Today,the farmers are getting better prices because of increased turn over and there by making increased profits.

Milk was always there in Punjab in plenty and lots to spare.So it flowed in to thousand of homes but a price not so good for toiling farmers.Milk exchanged hands through those

of middlemen who took away a major part of the farmers profits.This was what made MILKFED to step in. We know that farmers deserve much more and the things could always be better with little more planning,controlling and with the aid of modern technology.


Milkfed with its network of 5800 village Milk Producers Cooperative Societies and over 3 lac milk producers from the strong network which not only provides assured market to milk producers but also carries inputs to milk production enhancement at their doorsteps.

Milkfed and its unit has a work force of about 5000 employees.Every morning and evening milk is lifted from the village through private transport vehicles,which is providing a regular employment to about 600 transporters ,most of whom are selfemployed people .Similarly, seminators and first aid workers are also finding employment and at the same time providing input service to Milk Producers right in the villages.More than 5000 village Cooperative societies are having 10000 workers to man there milk procurement and technical inputs etc.


In addition to milk procurement ,processing and marketing of milk and milk products the federation is also providing technical input services to the specific target group(Milk Producers Cooperative Members).In order to save milk animals form heat stress Animal cooling units have been provided to Milk Producers ,which have given good

results.Usual fall in milk production during summer months has been fairly checked and controlled.


The federation and its affiliated Milk Unions are providing technical input services like animal health care,artificial imsemination services ,supply of balanced cattle feed,supply of quality fodder seeds and vaccination against diseases and prophylactics to the specific target group (Milk Producers Cooperative Members) at their doorsteps with a view to increase milk production and milk procurement.


The federation has strengthened the Frozen Semen station with the financial assistance from the Technology Mission on Dairy Development 986 elite buffaloes have been selected from various milk sheds for breeding them with the semen of progeny tested buffaloes.HI-Technology embryo transfer facilities have been produced.This facility in long run will make substantial improvement in the breed ok milch animals,thus contributing to the enhancement of milk production in the state.


As a result of continuous extension of dairying,the farmer are fully convinced about the importance of high yielding forages for increasing the milk production at low cost,thereby getting a substantial margin for the trade.The fodder development activities initiated by milkfed have created a good demand of improved fodder seeds in Punjab. Milkfed established its own seed processing to grade fodder seed at production of 15-16 M.T. per day.


Milked Punjab on behalf of milk union Ludhiana has started a project has started a project sponsored by Technology Information,forcasting and assessment council,a Govt. of India body for improvement of milk quality and yielding through better milk farm management in Punjab.A modern dairy demonstration and training center is also being setup for practical training of the farmers at Punjab Agriculture University at a total cost of Rs. One crore .Milkfed and its affiliated District Cooperative Milk Union,Ludhiana has taken a bold initiative by signing an agreement for a combined project with capital outlay of Rs.2 crore with TIFAC.The project has very fascinating possibilities ,as the project is first of its kind in the country.It is likely to serve as a model and direction for the entire country since we have to improve drastically,The productivity and quality in milk production to be globally competitive in the changed environment.

It is a composite project aimed at improving

dairy farm practices include better

housing,farm management and feeding to enhance the productivity of the live stock as well as to provide a clean environment for cleaner milk production.


Milkfed is serving the nation and the consumers through its network or regional offices and strong distribution channels.MILKFED markets a wide variety of products which includes liquid milk,skimmed milk powder,whole milk

powder,ghee,butter,cheese,lassi,SFM,ice-cream etc.The annual turnover of verka has crossed 600 crores.Verka is a brand leader in milk powders particularly in north eastern sectors and the SMP marketed by competitors which includes multinational as well as private trade and other cooperative federations.New Verka has has survived on the


sheer strength of its quality,freshness and purity and ofcourse its homemade taste nad all this at the most affordable prices.To people today ,Verka is a part of there everyday lives.


After winning faith of countless customers.Verka did not stop,as there was scope for more,changing times brought new trends,needs,tastes and hopes.Verka dymanic as ever,too acquired newer forms,by adding value to milk to satisfy a quality-conscious society.Milkfed is in its continuous effort to diversify from the traditional milk products to more value added products namely frozen dessert ,spiced cheese spread ,the flavoured fruit yogurt,processed cheddar cheese,cheese spread and there were milk powder like dairy whitener,skimmed milk powder.Health drinks like verka vigor,verka

lassi,sweetened flavoured milk a mango frink called raseela.Then there were verka curd,and a whole lot of different flavoured ice-creams.Milk had never meant so much before.


With competition in the national market zooming ,efforts to export products have been made.MILKFED has established its ghee market in Middle East.Verka ghee reaches all the Emirates and is available in almost all supermarkets.The penetration is so deep that verka ghee is available in far off labour camps.In addition to ghee,SMP was also exported to Asian countries like Philippines,Bangladesh and Sri Lanka.



During the post liberalization period,MILKFED in order to keep a pace with all-round development,decided to go in for certification of various Milk plants and Cattle feed plants under International Standards.The Milk Plant Ludhiana was the first dairy plant in the country to get an ISO-9002 certificate.Thereafter with the introduction of HACCP ,decision was taken that besides taking certificate under ISO-9002 ans IS15000(HACCP).It is a matter of pride that till date six milk plants and two cattle feed plants have already obtained this certification.Rest of the cooperative sector milk plants are also in progress to get this honour.


Since 1993-1994 MILKFED is paying dividend to its share holders including the state govt. for the year 2007-08 with the approval of the administrator.The federation has already paid dividend@4% to its shareholders with the approval of the general body of MILKFED.


The computerization in MILKFED was started during 1987-88 with the installation of two main frame computer systems at Milk Unions,Jalandhar and Milkfed head office to process the data of nearby Milk Unions.With the introduction of personal computer during 1992-93 in milkfed,The data processing has been decentralized at milk unions level.The activities like Milk billing,payroll,financial accounting,marketing of liquid milk,sale of products through dealers/milk bars and different M.I.S reports to govt. and other quarters have so far been computerized.


MILKFED is leading inn software development and providing training for handling the software application and software packages.The office automation packages on window based are being used in MILKFED and Milk Unions.More than 300 computers have been installed at Milkfed and Milk Union.The computer have been interlinked under local area network at Milkfed head office and Milk union

,Ropar,jalandhar,Ludhiana,Amritsar.For the faster communication and transfer of data,the computers at Milkfed and eight other Milk Unions have been interlinked through Modem. The federation has also executed implementation of entrepreneur resources planning (ERP) solution on worlds one of the best software package SAP in Milk Unions,Mohali and Ludhiana


Range of verka Milk Products:












Milk plant ,Chandigarh was established in the year 1962 by Punjab Govt. to provide hygienically prepared milk and milk products to the upcoming city of Chandigarh.The activity of liquid milk supply was shifted to milk plant,Mohali during 1979-80 .Punjab Dairy Development Corporation(PDDC) transferred the milk plant in the month of April 1983.Since then the history of Milk plant Chandigarh remained chequered one with the setting up of aseptic packaging station. In the month of march,1991 this milk plant was recommissioned and the production of icecream was started with substantial enhanced capacity.In order to introduce the verka Icecream in the market and to create awareness amongst the people of Chandigarh and


its satellite towns,Mohali and Panchkula,aggressive market campaign was started with the planned marketing.Now position is that Verka icecream has become a favourite brand.


The major activities at the plant are manufacturing of icecream sweetened flavoured milk.Fruit drinks,lassi,raseela,manufacturing of large quantity of kajupinni and milkcake and are also sweets,marketing of products of other plants like ghee,table butter and processed cheese etc.


Verka is having an apex body at the state land known as Milkfed Punjab Chandigarh .To start with the function in various fields of different districts and to operate with dairying and dairy fields i.e. Operation flood- with the assistance of national dairy cooperation(NDC),delhi and later on it is launched to operation flood -2nd which is affiliated to Punjab Milkfed.It helps to its affiliated district Milk cooperations .These eleven District unions are: 1.Ropar 2.Patiala 3.Ludhiana 4.Faridkot 5.Ferozpur 6.Sangrur


7.Bathinda 8.Gurdaspur 9.Hoshiarpur 10.Jalandhar 11.Amritsar

The unions are in eleven district of the state carry out smooth functioning of marketing ,procurement cattle breeding programmed through district Co-operation Unions(DOC).

Milkfed is having two cattle-feed factories i.e. 1.Khanna 2.Ghaniyan ka Bangar,Gurdaspur It has its one seed production and processing plant at bassi(Fatehgarh sahib).

Moreover it has got centralized exotic cattle farm and sperm stations at khanna which distribute semen straws to its affiliated unions and adjoining states.

Under this programmed development in dairying and dairy technology i.e installation of plant ,Milk chilling centers and impartation of dairy equipments as well as know how of cattle breeding sytems was familiarized to the common man and advanced milk producers.


So the whole development program is carried out through its own controlled factories realte to various fields.All units are having well equipped to maintain its good quality of products as par requirements laid down by ISI.


For the smooth running of the plant ,various sections are managed by the management.Each and every activity is delegated to particular section.It is impossible for top management to take decisions on every problem,so various tasks are delegated to various sections.These sections are interrelated to have frequent contacts with one another and its easy to share the information they need to coordinate their jobs.These integrated task teams handle there problems that makes the supervision easy.

The following are the sections in Verka:

a.Procurement section b.Production section c.Quality control section d.Marketing section e.Accounts section f.Personnel section g.Engineering section


h.Purchases section i.Store section


The milk Plant Chandigarh has the following line of products :-

Product Milk Tonned Skimmed Premium Standard


500 ml 500 ml 500 ml 500 ml


Lassi Plain Namkeen Spicy 1 ltr 250 ml 250 ml

Cheese Cekatainer Bricks Kheer 250 gms 125 gms 250 gms 1 kg

Curd 200 gms 400 gms


Curd premium 400 gms

Paneer 200gms 1 kg


Ice-Cream Kulfi Lollies Bricks Gallons 500gms,250gms 5 ltr

Ghee kg tin 1 kg tin kg mom 1 kg mom 2kg tin 5 kg tin 15 kg tin

Gulab Jamun kg tin 1kg tin 3.7 kg tin


Ras Gulla kg tin 1kg tin 3.7 kg tin

Milk fruit Drink Mango Raseela Pineapple Lichi drink 200ml tetra pack 200ml tetra pack 200ml pac



The company is promoted by two young entrepreneurs Gagan Matta and Garry Matta under the visionary guidance of their respected father Mr. Kulwant Singh Matta. Gagan Matta migrated to Canada in the year 1996 and with the support of his brother Garry Matta back in India established a successful company GLOBAL TRADERS engaged in the distribution of all types of Grocery, Food Products, Fruits & Vegetable and Articles of Daily use all across Canada . With a very strong dealer and distribution network Gagan Matta presently is the sole distributor of the products of various internationally acclaimed Companies and Brands like Brooke Bond Red Label, Lipton, Taj Mahal from Unilever/Hindustan Lever, Bikano Namkeens and Sweets from Bikanervala, Sohna Saag from Markfed Punjab, World Famous Tilda Rice and Golden Temple Atta, Biscuits from Britannia, Verka Ghee & Paneer, Mazza Mango Juice from Parle, Chetak Cookware and many more. These two enterprising young men have also successfully promoted a famous brand Mr. Orange. It has become a national brand in just two years of its launch in Dec. 2004. Now they are poised to launch a famous Indian Food Chain in North America.


Nestle, Amul, Britannia, Dynamix Diary, Sterling Agro, Haryana Milk Foods, Mohan Food, Modern Dairy, K Dairy Amul, Sapan, Vijaya Spray, Meadow, Mohan, Parag, Shweta, Malkana, Gagan, White Magic, Every Day.


Market Growth Rates 1990-91 - 1996-97 1996-97 - 2001-02 2001-02 - 2006-07 2004-05 - 2009-10 2009-10 - 2014-15 3.6% 10.1% 8.7% 8.3% 8.0%

The main thrust of proposals is on the improvement of animal health and adoption of sanitary and phyto-sanitary specifications (SPS) for dairy products. Towards this end, the Technology Mission on Dairy Development (TMDD) has initiated a wide-ranging program.

Table 1: Milk Utilisation Pattern in India, 1943-2004 Year Milk Production (million tones) Mil Utilisation (Percentage) Liquid Milk Traditional Products Ghee/Makhan (clarified butter) Dahi (Yogurt-like) Khoya (Partially desiccated Milk 1943* 23.5 100 28.0% 72.0% 58.7% 5.2% 5.0% 1956 17.8 100 39.2% 60.8% 46.0% 8.8% 4.4% 2004 91 100 46.0% 50.0% 33.0% 7.0% 7.0%


Chhana and Paneer (unprocessed cottage cheese) Western Products: Milk Powder, etc *Includes Pakistan and Bangladesh

3.1% Neg

1.6% Neg

3.0% 4.0%

The upsurge in milk production has thrown up challenges in milk marketing. The country is blessed with an enormous domestic market because of the following factors: Large population and its continuous growth, low level of per capita milk consumption and hence large size of potential, but latent demand, increasing purchasing power, which is already in evidence, will transform the huge latent demand into real demand. The groups of dairy products offering exciting marketing opportunities are liquid milk itself, which accounts for a sizeable part of the milk consumption products, in which our dairy industry already has demonstrated considerable expertise, like milk powders, butter and ghee. The ability to manufacture the relatively new and sophisticated products like cheese and ice cream alongside the traditional products like paneer, khoya and milkbased sweets are now being manufactured on a large scale.


Policies Influencing the Dairy Sector Agriculture, including the dairy sector, is state controlled, and state governments are primarily responsible for development of the sector. The central government supplements the efforts of the state governments through various schemes for achieving accelerated growth of the sector. Despite the importance of dairying in the Indian economy, especially for the livelihoods of resource-poor farmers and landless laborers, government policy toward this sector has suffered from the lack of a clear and strong thrust and focus. The first attempt to conceive a set of policies for livestock development in India was the Royal Commission on Agriculture (1928). We can divide


the government policies into three distinct phases; pre-Operation Flood, post-Operation Flood, and post-reform period.

One of the indicators of a sector's importance is the budget allocation to that sector. The investment pattern in animal husbandry and dairying during various plan periods is given in Annex Table 2.4. The plan outlay (at current prices) of central and centrally sponsored schemes under animal husbandry and dairying has increased from Rs. 22 crore in the First Plan to Rs. 1,545.64 crore in the Ninth Plan and Rs. 2500 crore in the Tenth Plan. The outlay for dairying increased from Rs. 781 crore in the First Plan to Rs. 900 crore in the Eighth Plan and then declined in the Ninth Plan to Rs. 469.5 crore (all figures are at current prices). The allocation to animal husbandry and dairying as a percentage of total plan outlay varied from 0.98 percent during the Fourth Plan to about 0.18 percent during the Ninth Plan (Figure 2.5). However, in most cases the bulk of the budget is eaten up by wages and other administrative costs of the government departments. Although the dairy sector occupies a pivotal position and its contribution to the agricultural sector is the highest, the plan investment made so far does not appear commensurate with its contribution and future potential for growth and development. The low productivity of Indian cattle has been the central concern of livestock policy throughout the last century. In the First Five Year Plan, the Key Village Scheme (KVS) was launched to improve breeding, feed and fodder availability, disease control, and milk production. To meet urban areas' need for milk, the government promoted stateowned dairy plants to handle milk procurement, processing, and marketing. In 1959, the government Delhi Milk Scheme (DMS) was set up to supply milk to the urban population of Delhi. This scheme adopted the method of departmental milk procurement from the milk-producing areas around Delhi by setting up its own milk collection and chilling centers. Though the collection was started from small milk vendors initially, it ultimately ended up creating big contractors who purchased milk from the small vendors and supplied it in bulk to the milk scheme. The same policies and strategies continued in the Second Five-Year Plan. In 1976, the National Commission on Agriculture concluded that the KVS could not meet its objectives because, due to a shortage of funds, it did


not stress feed and fodder development and marketing of milk. The Third Plan emphasized the need to develop dual-purpose animals for milk as well as draft use; crossbreeding of nondescript indigenous cattle was introduced during this plan. The Intensive Cattle Development Programme (ICDP) was launched in areas with high milk potential. The disappointing performance of the dairy sector during the 1950s and 1960s concerned policy makers, and the Government of India undertook a far-reaching policy initiative. Dairy development through producers' cooperatives and milk production based on milk sheds in the rural areas, modeled on the successful experience of dairy cooperatives in Gujarat, became the cornerstone of the new dairy sector policy. This policy initiative turned the Indian dairy sector around and led to all-around growth with several unarticulated spread effects. The Government of India launched a massive dairy development program popularly known as Operation Flood (OF) from 1971 to 1996. The program was initially started with the help of the World Food Program (WFP) and later continued with dairy commodity assistance from the European Economic Community (EEC) and a soft loan/credit from the World Bank. Under this program, rural producers were organized into cooperatives so they would have an assured market, remunerative prices, and inputs and services for milk production enhancement, such as better feed and fodder, breed improvement through artificial insemination, and disease control measures. The program was unique in its approach inasmuch as the gift dairy commodities received by India under the program were not consumed by free distribution but were used to manufacture liquid milk, and funds thus generated were reinvested in rural areas in milk production enhancement activities. This coordinated and innovative effort has greatly increased milk production and ushered in a "White Revolution," making India the world's largest milk producer. The program was implemented in three phases: OF-I (1970-1981), OF-II (1981-85) and OF-III 1987-96). Operation Flood remained the pivot of government policy in the field of dairy development in India, and the number of city milk schemes and milk colonies begun in the 1950s and 1960s declined as the regional and national milk grids started


operating under OF. In metro areas, government milk schemes coexisted with the Mother Dairies run under the control of the National Dairy Development Board (NDDB); however, the former kept selling milk at subsidized rates for long time for political reasons, and Mother Dairies introduced aggressive, modern milk marketing and distribution systems. An indicator of the success of Operation Flood is the amount of milk procured and supplied to consumers. Average milk procurement increased from 2.56 million kg per day during Phase I to 11 million kg per day during Phase III. However, there are variations in the proportion of milk procured to total milk production across states. The striking pattern that emerges is the predominance of cooperatives in Gujarat and Maharashtra. Between Phase I and III, average liquid milk marketing increased from 27.8 lakh liters per day to about 100 lakh liters per day. In 1989, the Government of India launched a Technology Mission on Dairy Development (TMDD) to coordinate the input programs for the dairy sector, which ended in March 1999. An Integrated Dairy Development Programme (IDDP) in nonOperation Flood, hilly, and backward areas was launched as a Centrally Sponsored Plan Scheme during the Eighth Plan and continued during the Ninth and Tenth Plans. To promote domestic production, India adopted an import-substitution strategy and protected the sector from external markets through means such as quantitative restrictions on imports and exports and canalization (restricting imports and exports through government or government designated agencies). Competition within the organized sector was regulated through licensing provisions, which prohibited new entrants into the milk-processing sector. Milk powder and butter oil were available in the international market at lower prices, which made reconstitution of milk from these products cheaper than collecting and selling fresh milk. It was therefore necessary to restrict the availability of these cheap imports to encourage the indigenous production. The third phase of Indian dairy policy started in the early 1990s, when the Government of India introduced major trade policy reforms that favored increasing privatization and liberalization of the economy. The dairy industry was delicensed in 1991 with a view to


encouraging private sector participation and investment in the sector. However, in response to sociopolitical pressures, the government introduced the Milk and Milk Products Order (MMPO) in 1992 under the Essential Commodities Act of 1955 to regulate milk and dairy product production. The order required permission from state/central registration authorities to set up units handling more than 10,000 liters of milk per day or milk solids up to 500 tons per annum (TPA), depending on the capacity of the plant. The order included sanitary and hygienic regulations to ensure product quality. The status of registrations granted under the MMPO as of March 31, 2002, is given in Annex Table 2.5. However, concerns were raised about these government controls and licensing requirements for restricting large Indian and multinational players from making significant investments in this sector. The government has amended the MMPO from time to time; the major amendment was made in March 2002, when restrictions on setting up milk processing and milk product manufacturing plants were removed and the concept of milkshed was also abolished. This amendment is expected to facilitate the entry of large companies, which would definitely increase competition in the domestic markets. The second major development in Indian dairy sector policy came when India signed the Uruguay Round Agreement on Agriculture (URAA) in 1994 and became a member of the World Trade Organization (WTO), which made India open up its dairy sector to world markets. The import and export of dairy products was delicensed and decanalized, and trade in dairy products was allowed freely, with certain inspection requirements. The first major step was taken in 1994-95, when the import of skim milk powder (SMP) and butter oil was decanalized; restrictions on the remaining products were removed in April 2002. Moreover, there was a significant reduction in the import tariffs on dairy products after trade liberalization. However, India had bound its import tariffs for dairy products at low levels in the Uruguay Round schedules.



IMPRESSIVE SALES GROWTH AND ATTAINED 13% CAGR FOR THE LAST 3 YEARS. Milkfed achieved impressive Sales growth of 13% during the year 2009-10 in comparison to previous year by increasing this from Rs.1110.32 Crores to Rs. 1253.20 Crores.

Milkfed is expecting impressive growth in Sales turnover to continue during the year 2010-11 also which is a healthy sign and has a plan to achieve target of Rs. 1450.00 Crores. This will improve the financial position of Milk Unions with special reference to reduction in ratio of Salary & Wages overhead to Sales turnover. Milkfed has been able to achieve CAGR of more than 17.5% for the last 5 years and is determined to maintain this rate of growth in the coming 4-5 years to achieve the target of Rs. 2600.00 Crores Sales turnover in the year 2014-15.

SIGNIFICANT IMPROVEMENT IN FINANCIAL POSITION Milkfed as an Apex Body earned net profit of Rs.628.02 Lacs during the year 2009-10 in comparison to profit of Rs.558.78 lacs during previous year. If we put Milkfed & its affiliated Milk Unions together there is net profit of Rs.2021.49 lacs during 2009-10 against net profit of Rs. 1462.02 lacs in previous year. This is ever highest profit since inception and surpassed earlier highest profit of Rs.1462.02 lacs earned during the year 2008-09. During the year 2009-10 seven out of Eleven Milk Unions earned net profit. This ever highest profit has been possible by adopting various strategies to increase Sales turnover, milk procurement, aggressive marketing, efficient fund management, costs drive and mobilisation of additional resources.


VERKA'S PRODUCT RANGE Milkfed markers a wide range of products including different variants of Pasteurised Packed milk, Ghee, Table Butter, Skimmed Milk Powder, Whole Milk Powder, Cheese, Tetra Pack Products, Sweetened Flavored Milk, Ice Cream, Fresh Products like Lassi, Paneer, Dahi, Kheer, Indigenous Sweets under the brand name of Verka. It also markets Fodder Seed, Cattle Feed and mineral mixture for milk producers.

UPWARD TREND IN MILK PROCUREMENT Milk procurement of MILKFED was almost stagnant till 2006-07. By adopting various focused strategies we were able to procure on an average 9.49 lac Kg. of Milk per day during the year 2009-10 against procurement of 9.21 lac Kg. per day during the year 2008-09achieving an increase of 4%.

If we see Milk Procurement scenario in Cooperative Sector at National level, Milkfed Punjab was at 5th place in the year 1995-96 after Gujarat, Rajasthan, Maharashtra, and Tamil Nadu and due to one reason or other it slipped down to 9th position in 2006-07. In the year 2007-08 its position improved to 8th by overtaking Kerala. Further to 7th position in 2008-09 by overtaking Uttar Pradesh. . During the current year 2010-11 the Federation has attained growth of 15% over same period of last year.

IMPRESSIVE GROWTH IN PACKED LIQUID MILK SALES Milkfed marketed 7.27 lac ltrs. of packed milk per day in different variants during the year 2009-10 against 6.58 lac Ltrs. Per day during the year 2008-09 achieving impressive growth of 10.4%. Milkfed is expecting impressive growth rate in packed liquid milk sales to continue in this year also and has achieved growth of 9% upto September,2010.


IMPRESSIVE SALE GROWTH IN FRESH MILK PRODUCTS During the year 2009-10 more stress has been given to market fresh products like Paneer, Kheer, Dahi, Lassi etc. which are value added products for Milk Unions. Product-wise growth achieved during the year 2009-10 in comparison to 2008-09









PERCENTAGE OF SALES TURNOVER In a sound commercial organization the ratio of salary & wages overhead to Sales turnover should be below 5%. In case of Milkfed including its affiliated Milk Unions it was 10.02% during the year 2005-06 which came down to around 7.5% during the year 2009-10 by achieving good growth in sales turnover. The Federation has a plan to bring it further down during the current year by carrying out the exercise of restructuring of manpower in all the Milk Unions and Milkfed Units by giving more emphasis on outsourcing number of activities and by automation at Plant level.




Business concerns

Demand drivers

factors Liquid milk

Sourcing Distribution

Financial distress coof

Packaging smaller units




Package d milk


Small market size

Convenience Health concerns

Milk products

Branding Refrigeration

Inadequate infrastructure

Increase per income



Infant mil

Education Marketing

Poor penetration

Changing food habits

Regulatory changes

Dairy sector was de-licensed in 1991 No industrial license is required fro dairy industry Foreign equity participation permitted to the extent of 51 per cent in dairy processing sector

Excise duty on dairy machinery has been fully waived off

Key legislations:

Milk and Milk Products Order 1992: With following controls Collection areas/milk sheds specified Processing capacity fixed

Revised MMPO in 2002: Controls stand withdrawn


The production, distribution and supply of milk products are controlled by the Milk and Milk Products Order, 1992. The order sets sanitary requirements for dairies, machinery, and premises, and includes quality control, certification, packing, marking and labeling standards for milk and milk products.

The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 and Rules 1993


STRENGTHS Minimum interference from the top management in day to day working. Qualified, experienced and devoted workforce. Brand name - Verka Direct contacts with milk producers. Own cattle feed plant and fodder seed grading station for supplying certified fodder seeds. Technical and financial guidance and support from Milkfed Head Office Chandigarhand National Dairy Development Board. Good corporate governance and socially responsible organization. Emotional attachment of people to Verka as they consider it as brand of Punjab. Such a status is not enjoyed by any of the other brands in the market.

WEAKNESSES Highly competitive market. Problems in research and development. Fewer facilities for transportation of milk.


The plant is having very limited human resources and most of its departments are falling short of work force putting extra burden on present work force. Other brands of milk are giving tough competition, as it does not advertise its products completely. Although management is devoted to its work but they are traditionally educated so theylearn by experience.

OPPORTUNITIES Skimmed Milk Powder (SMP) is cheaply available to milk plant as it is prepared when procurement is more than demand. This allows milk plant to give competitive prices for procuring milk and attract more and more dairy farmers. Although Verka is having a broad range of products but still there are certain niche products which Verka do not manufacture until now. Verka should make efforts in developing such products like Skimmed Milk in tetra packs. Milk plant is already exporting Ghee to gulf countries. It has received export orders for Skimmed Milk Powder, Ghee and Raseela. Thus, it is expected that by more exports, it will earn more precious exchange for country. National Dairy Development Board is also helping milk union to increase milk procurement. Health consciousness among people is increasing day by day and thus there is hugemarket for pro-biotic milk and milk products

THREATS Other big companies like Dairy Pure and Vita are foraying into milk business. There is a possibility of this trend being followed by other Companies like Amul and thus creating tough competition for Verka. the absence of strict quality parameters for private dairies, the entry barrier In for them is very low.


it is a government organization any change in government means change in As its all policies. The cost for the raw material is continuously rising and this major cause warning people from dairy farming



Dr. Arvind Kumar Yadav and Mr. Suman Yadav (2008) Journal of IPM Meerut
The research on the on the topic CONSUMER SATISFACTION IN SBI the objective of the study is to made analyse with regard to the assessment of services provided by SBI to the customers. The research methodology used by researcher includes collection of primary and secondary data. Primary data has been collected from the existing customers of SBI. Data collected has been analyzed by researcher through tables, graphs and pie charts. By the researcher found that the expectations of customers of SBI are met to a limited extent.

Dr. N. Kathirvel and Dr. N Chandersekaran (2008) Indian journal of marketing

The researcher research on the topic CONSUMER BEHAVIOUR AND BRAND PERFORMANCE TOWARDS THE ONIDA T.V the objective of the research was to study consumer satisfaction and brand loyalty of the respondents toward the Onida T.V. For this researcher collected primary and secondary data from the sources. The research methodology adopted by the

researcher includes chi-square test, percentage, arithmetic mean, correlation, and variance. The researcher founded that favorable appreciation response was received from the customers. Study also certifies that consumer behavior is unpredictable one in any kind of the market.


J.V Rangeswara Reddy (2009) Indian journal of marketing

The researcher research on the topic CUSTOMER SATISFACTION OF NOKIA MOBILE HANDSET USERS the objective of the research is to study the satisfaction level of the customers, awareness of customer about the products and to predict the consumer behavior. For this researcher collected primary data and analyse it with the help of tables, charts, bar graphs and pie charts. The researcher found that the product awareness about the nokia product is high as compared to others. It is also concluded that the consumer is influenced to buy nokia due to its brand image and also the satisfaction level of customers of nokia is high as compared to the others handsets in market.

Steen amp (1991) studied the Consumers' variety seeking tendency (intrinsic desire
for variety) is recognized as an important characteristic that influences consumers' electronic choice behaviour. Empirical studies in economics and marketing have not specifically focused on this consumer characteristic, but instead have approached the issue from the overt behaviour side. Given the great many factors that may underlie variation in behaviour, intrinsic desire for variety cannot be validly derived directly from observed behaviour. Instead, a measure specifically tapping this consumer

characteristic is required. In this paper a scale (VARSEEK) for measuring consumers' variety seeking tendency with respect to foods is developed. The construct validity of this VARSEEK-scale is investigated extensively and managerial implications are discussed

H.k mukharje (1995) studied that two-equation bivariate probit model was
formulated to analyze simultaneously consumers' preferences and attitudes toward organically grown produce (OGP). Results suggest that consumers who are nutritionally conscious, concerned about the use of pesticides, and wanting produce tested for freedom from residues would have a higher Propensity to prefer OGP. Among the


potential buyers, consumers who are white, better-educated, and have large families are more likely than others to tolerate sensory defects. The study suggests that testing and certification, sensory qualities, and competitive pricing are the most important factors that would enhance the marketing potential of OGP



INSIGHT MARKETING RESEARCH PROCESS AN OVERVIEW- MAIN OBJECTIVE The essence of research conducted by me is to analyze the customer satisfaction level of the products supplied by verka and how do the customers rate the products and the services given by verka. The eventual objective is to suggest some recommendations to the company so as to enable them to increase the satisfaction level. One in analyzing my samples follows no conventional method. The total analysis is based on the internees from the question put on before my sample size. A research of this cant be done all once throughout large area in a limited time so CHANDIGARH has been selected for research.

According to Prof. Phillip Kotler,Marketing research is the systematic, design, collection, analysis and reporting of the data and finding relevant to specific marketing situation facing the company. Marketing is restless, changing dynamic field. Since 1920 many important and dramatic changes have taken place in marketing, thousands of new products including those of entries of new industries such as automobiles, electronics and computer, textile, walk product etc. have appeared in the market. The market orientations have changed from production to market.



The first step of marketing research is defining the problems and research objectives. Following are the problems and objectives which are to be defined:

# # # # # # market # its

To ascertain the frequency of using Verka product. To ascertain rescannable price of Verka products. To ascertain the best product of Verka brand. why people prefer Verka kheer. To know about sales pattern. To know the competition level faced by Verka products in the .

To know the opinion of people about Verka products regarding

Taste,quality etc.


The second step of marketing research process calls for developing the most efficient plan for gathering the needed information. While designing a research plan we have to take decisions regarding data sources, search approached, search instruments, sampling etc. There are two plan contact methods which are as follows:


1. DATA SOURCES There are two types of data sources a. b. primary data Secondary data

a .Primary Data:Personal interviews are conducted which enable collection of oral verbal response. This is face to face contracted with structured or sometimes even unstructured patterns. This helps in obtaining indent information.

b. Secondary Data:Secondary data can be obtained from different Milkfed magazines and annual reports, financial documents referred


Survey Method :

- Survey are best suited for descriptive research companies which undertake surveys to learn about peoples knowledge, beliefs, preferences, satisfaction etc. to measure these magnitude in the general population. While observation and tours are best suited for exploratory research which is not the case of our study.


Questionnaire A questionnaire is prepared and used to collect the information. The majority of questions are close ended. Questionnaire is distributed to people to know


about their preferences, tastes, demands etc. This is one of the easiest methods of collecting information.

4. SAMPLING PLAN After deciding on the research approach and instrument, we must design a sampling plan. This plan calls for three decisions:


Sampling Unit:- Here we define what is to be surveyed i.e. the

target population that will be sampled. In our case the general public in cities and towns come under the sampling unit.


Sample Size:- Large samples give more reliable results. In our

study 100 customers were surveyed in Chandigarh.


Sampling Technique :- Random sampling is used because it

is not practically possible to visit all places of Punjab therefore Chandigarh chosen for survey.


In this decision is taken that how the object should be contacted i.e. whether by questionnaire, interviews. In our research personal interview is the most convenient and reliable method.


The data collection phase of the marketing research is the most expensive and most error prone process. There can be error as some respondent can give biased or dishonest answer for the collection of the information. The researchers personally go to


customers to collect the reliable data. Here all knowledge of the researcher about that field comes to test the ingenuity of the research. Here I got the experience of working professionally and independently on the road which gives some taste of practical marketing. I also got a lot of exposure about the market. The present study undertaken is descriptive in nature and in this study questioning people with regular expertise in that are being used.




1.Kind/source of milk purchased?

Packed Dairy Milkman

34 25 41

Fig 5.1

Milkman 41%

Packed 34%

Dairy 25%




Fig 5(a)

Interpretation: According to 100 respondents 34% people says that they use to use packed milk, 25% says they use dairy milk and rest 41% says they use milk brought by milkman.


2:How you ever used Verka Products?

Answer Yes No

Percentage 60 40

Fig 5.2


40% 60%

Yes No

Fig 5(b)

Interpretation: According to 100 respondents 60% people says that they use to verka product and 40% people do not use verka product..


3:From the following which Verka products you have used?

Products Milk Ice-Cream Lassi All & Others

Percentage 55 25 5 15 Fig 5.3

Percentage 60 50 40 30 20 10 0 Milk IceCream Lassi All & Others


Fig 5(c)

Interpretation: According to 100 respondents 55% people says that they use to use packed milk, 25% says they use ice cream and 5% says they use verka lassi and rest are 15% used other product of verka.


4:Since when you are using Verka milk Product?

Time in Years 1 1-5 More than 5 Fig 5.4

Percentage 57 34 9


1 1-5 More than 5



Fig 5(d)

Interpretation: According to 100 respondents 57% people says that they are using the milk product last one year, 34% from 1 to 5 year and 9%people using the milk more than 5 year..


Q5:Do you think whether the price is reasonable for Verka milk products?

Answer Yes No Fig 5.5

Percentage 45 55


45% 55%

Yes No

Fig 5(e)

Interpretation: According to 100 respondents 45% people says that the price of verka milk product is reasonable and remaining 55% people says that reasonable. the price is not


6: What do you think about the packing of the different Verka products?

Answer Good Ok Satisfactory Poor Very poor

Percentage 68 8 9 15 0 Fig 5.6

Percentage 80 70 60 50 40 30 20 10 0


Fig 5(f)

Interpretation: According to 100 respondents 68% people says that the packing of verka products are good, 8% people says that packing is ok, 9% says satisfactory and remaining 15% says that the packing of verka products are poor so according to this analysis packing is good.


7:In your opinion taste of the Verka products are?

Answer Good Average Satisfactory Poor Very poor

Percentage 64 8 18 10 0 Fig 5.7

Percentage 70 60 50 40 30 20 10 0


Fig 5(g)

Interpretation: According to 100 respondents 64% people says that the taste of verka product is good, 8% says that its taste is average, 18% people satisfactory with this and 10% people says that the taste is poor.


8.What is your opinion about the quality of the various Verka products?

Answer Excellent Good Satisfactory Poor Very poor

Percentage 13 51 26 10 0 Fig 5.8

Percentage 60 50 40 30 20 10 0 Excellent Good Satisfy Poor


Fig 5(h)

Interpretation: According to 100 respondents 13% people says that the quality of verka products are excellent, 51% people says that the quality is good, 26% people satisfy with this and remaining 10% people says that it is poor.


9.Are you aware that full cream milk is the best for growing children & sports person as it contain 6.0% of fats?



No Fig 5.9


No 37%

Yes 63%



Fig 5(i)

Interpretation: According to 100 respondents 63% people says that they are aware about that full cream milk is the best for growing children & sports person as it contain 6.0% of facts and rest 37% says that they are not aware that full cream milk is the best for growing children & sports person as it contain 6.0% of facts.


10:Have you ever seen the advertisement of the Verka Products?

Answer Yes No

Percentage 24 76 Fig 5.10


24% 76%

Yes No

Fig 5(j)

Interpretation: According to 100 respondents 76% people says that they have not seen the verka advertisement and 24% says that they have seen the advertisement. As clear from analysis mostly people have not seen the verka advertisement.


11:When you like to buy verka products?

Answer During Traveling For Break As a Health Tonic For Enjoyment

Percentage 27 18 35 20 Fig 5.11


40 30 20 10 0 As a Health Tonic For Break For Enjoy During Traveling


Fig 5(k)

Interpretation: According to 100 respondents 27% people says that they like to buy verka products during traveling, 18% people buy during break time, 35% people buy as a health tonic and remaining 20% buy verka products only for enjoy.



Working at Verka Milk Plant, Chandigarh gave me an opportunity to apply my skills and knowledge, which I had gained previously. 1. Based on the random questionnairs that were filled by the population in Chandigarh we have come to the following conclusion. 2. We found out that more than 60% of the sample size taken has heard about the products and has used the products at some point of time. 3. A considerable amount of population has seen the verka advertisement and knows about the latest products and prices offered by the plant. 4. 50% of the population in sample size consider the quality of the verka products to be good. 5. We conclude from the survey done that more than 50% of the population considers the services and the quality of the products offered by verka plant good and they customers are satisfies by it.



RECOMMENDATIONS REGARDING PRODUCT:1. Verka has presently four variants of liquid milk in market but still it is not able to segment market according to consumers preferences. The only differentiation in these variants is the color of the packs. Variants name should be printed on the packs in such a way that they are clearly visible to the consumer. 2. Plain lassi which comes in one litre pack only should be available in smaller packs like 250ml or 500ml. 3. Kheer is available in 125gm pack, which is quite small and is recommended to be packed in larger pack like family size packs so that it can be consumed conveniently as a sweet dish by whole family.


1. Milk consumer values from delivery and a lot of distributors are already providing this facility. Milk plant should think of giving extra commission to its dealers for ensuring such facilities. 2. There is need to communicate regularly and taking feedback from agents. Monthly meetings will help in improving the relation with dealers. The declaration of the prices like Fastest Growing Dealer OR Highest selling Dealer can be announced bi monthly or bi annually to motivate dealers to increase their sales. 3. Shortage of products is seen in Sunam so distribution network should be improved for the same.



The following steps can be taken in the field of promotion: 1) Using electronic and print media for information dissemination: In recent days, there has been lots of new highlighting adulteration of food products that is making people skeptical about packed food products. Special programs highlighting supply chain of milk producers co-operatives can be screened and telecasted on TV from time to time .news highlighting achievement of milk plant can also be published in news papers which will help in creating favorable image for verka products. 2) Inviting people for plant visits on weekends: Plant can be opened to general public for visit on Saturday and Sunday for a limited time interval in order to win their trust on verka products. This can be done through collaborating with Radio Fm channels where winners can get free visits and some limited period coupons. 3) Toll free telephone for customer feedback: Presently verka products have a telephone number printed on their packs but this is not toll free. A toll free number should be there and printed in such a color or font that is easily differentiable from the rest of the text on the pack.

Recommendations regarding pricing:

Following suggestions can be considered for improving pricing strategies of companies: 1) Introduction of coupon system;


Milk is the commodity that is daily bought and consumed within households. It is cumbersome for consumers to make payment daily as change for currency is not available at times. They are offered candies in return for change which many of the consumers do not like. This problem can be solved by introducing milk coupon which can be bought from agencies. Coupon system has been successfully implemented by several individual distributors in their respective areas. It is needed to be implemented in entire city. 2) Pricing in round figures: Milk sellers often do not have fifty paise coin or change with them so they often sell milk at higher prices .this problem can be curbed by keeping the prices in whole number multiple of rupee. People buying milk using coupons can be this discount of fifty paise. This will encourage more people to for milk coupon.

Limitations of research:1) Due to chandigarh being a large city, it was not possible to interact with people from all over the city or even district. 2) Few consumers were reluctant to fill the questionnaire as they perceived us as sale men and also shown reluctance in giving their contact numbers. 3) Time period for the project execution was less as ample time could not be given to each customer and vice versa as they have to fulfill their other obligations also. 4) Interaction with dealers was also difficulty as they were busy with their customers most of the time. 5) There is no measure to check out whether the information provided by the consumers is correct or not.


During the making of the project report various books are consulted: The main books which helped me during the project are:




The activity is for the welfare of the Customers of verka product and collection of information about quality,quantity and competitor products of verka. Date________/Time_________ 1.Name:- ______________________________________________________________ 2.Address ________________________________________________________________ :-

________________________________________________________________ 3.Contact ______________________________________________________________ no.:-

4. Kind/source of milk purchased? Packed Dairy Milkman

5. How you ever used verka product? Yes No


6. From the following which verka products you have used? Milk Ice cream Lassi All & others

7. since when you are using verka milk products? One year 1-5 years More than 5 years 8. Do you think whether the price is reasonable for veka milk products? Yes No

9. What do you think about the packing of different verka products? Good Ok Satisfactory Poor


10. In your opinion taste of verka products are? Good Average Satisfactory Poor

11. What is your opinion about the quality of the various verka products? Excellent Good Satisfy Poor

12. Are you aware that full cream milk is best for growing children & sports persons as it contains 6.0% of fats? Yes No


13. Have you ever seen the advertisement of verka products? Yes No

14. When you like to buy verka products? During traveling For break As a health tonic For enjoyment