MBA Programme

INTRODUCTION
Marketing occupies an important position in the organization of a business
unit. It is one of the important line activities of business operations, the change
that are taking place in the economy reflect every other field. The job of business
is to produce goods and services to the consumers. The economy is characterized
by scarcity of men, materials and money, the job of a business man has become
more complex. Increase in the needs and desires of consumers and of marketing,
the business man is placed in a more difficult position in producing and selling his
goods, the performance of other activities felt necessary for the success and several
of the business organizations. It is in this context, the activities of marketing mix
came in to existence. marketing management takes place when at least one party to
a potential exchange gives thought to objectives and means of achieving desired
responses from other parties, according to the American marketing association
Marketing

management

is the

process

of

planning

and

executing

the

conception, pricing, promotion and distribution of ideas, goods and services to

create exchanges that satisfy individual and organisational objectives. This
definition recognizes marketing management as a process involving analysis,
planning, implementation and control; that it covers ideas, goods and services; that
it rests on the nation of exchange, and that the goal is to produce satisfaction for
the parties involved. The function of distribution involves both channelization of
products/services and their physical distribution. Marketing research, product planning,
pricing, selling, advertising &distributing. Though these functions are identified with
operations unique to them individually, they are not performed in isolation they
interact among themselves to produce an integrated business function called
marketing.
The marketing executive closely coordinates the activities of the different
marketing functions right from the conception of the product idea to the
consumption of the finally developed and delivered product the result of this intra
marketing coordination is the development of a marketing mix built in potential for
the maximum impact in the market place. Besides marketing decision spear heads
coordination with the other product other corporate functions ex: production,
finance, personal etc. so as to produce a well knit, effective and profitable

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corporate action directed towards achievement of the twin objectives of consumer
satisfaction and targeted return on investment.
Marketing mix is an optimum combination of efforts in different functional
areas of marketing called components, like marketing research, product, price,
distribution and communication including selling in such a manner that marketing.
Product.
Place.
Price.
Distribution.

DISTRIBUTION:
Vaile greater and case regarded distribution channel as a flow rather than
function so as to indicate that channel is a path way for the flow or ownership
and possession of goods and services. They defined distribution channel as the
combination and sequence of agencies through which one or more of marketing
flows move. Distribution of marketing channels may be defined as a pathway
composed of intermediaries also called middlemen, who perform such functions as
needed to ensure smoothing and sequential flow of goods and services from the
manufacturing ends to the consumers ends in order to achieve marketing objectives
of a company.

DISTRIBUTION CHANNEL:
Play a very important role in achieving the marketing objectives of a
company. Undoubtedly, value utility is created by the manufactures of product or
services but time and place utilities are created by distribution channels, according
to DRUCKER both the market and the distribution channel are often the more
crucial than the product. They are primary, the product is secondary.

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The distribution system creates a value to almost all products. The value added
in distribution in the case of several consumers articles is significant as compared
to the value added during manufactures.
Distribution creates time and place utilities.

It

renders

adequate

value

satisfaction to customers, customer service has as important role to play.

An efficient management of the physical distribution may accrue to a
company a larger market share. Perhaps one of the most tangible contribution that
distribution can make is in reducing the distribution cost of a companys product.
Retailing entails the business activities involved in selling goods and services to
consumers for their personal, family, or household use. Today, it is at an interesting
crossroads, with many challenges ahead.
Retailing may be viewed from multiple perspectives. It includes tangible and
intangible items, does not have to use a store, and can be conducted by manufacturers and
others -- as well as by retail firms.
Annual U.S. store sales are $2.5 trillion, with other forms of retailing accounting
for hundreds of billions of dollars in added revenues. The worlds largest 100 retailers
generate over $1.2 trillion in yearly revenues. About 21 million people in the United States
work for traditional retailers, which understates the number of those actually employed in
a retailing capacity. Department and specialty stores receive up to 40 cents or more of
every sales dollar as compensation for operating costs, the functions performed, and the
profits they earn.
Retailing is the last stage in a distribution channel, which contains the businesses
and people involved in physically moving and transferring ownership of goods and
services from producer to consumer. In a channel, retailers perform valuable functions as
intermediaries for manufacturers, wholesalers, and final consumers. They collect product
assortments from various suppliers and offer them to customers. They communicate with
both customers and other channel members. They may ship, store, mark, advertise, and
pre-pay for items. They complete transactions with customers and often provide customer
services.

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Retailers and their suppliers have complex relationships because the retailers serve
two roles. They are part of a distribution channel aimed at the final consumer; and they are
major customers for their suppliers. Channel relations are smoothest with exclusive
distribution; they are most volatile with intensive distribution. Selective distribution
combines aspects of both in an attempt to balance sales goals and channel member
cooperation.
Retailing has several special characteristics. The average sales transaction is small.
Final consumers make many unplanned purchases. Most customers visit a store location.
To introduce the concept of strategic planning and apply it
A retail strategy is the overall plan guiding the firm. It has six basic steps:
Defining the business, setting objectives, defining the customer market,
developing an overall plan, implementing an integrated strategy, and evaluating
performance and making necessary modifications. Lands Ends strategy has been
particularly well designed and carried out.
To relate the marketing concept to retailing, with an emphasis on the total retail
experience, customer service, and relationship retailing The marketing concept (known
as the retailing concept when applied to retailing situations) should be understood and
used by all retailers. This concept requires a firm to have a customer orientation, use a
coordinated effort, and be value-driven and goal-oriented. Unfortunately, despite its ease
of use, many firms do not adhere to one or more elements of the retailing concept.
The total retail experience consists of all the elements in a retail offering that
encourage or inhibit consumers during their contact with a given retailer. Some elements
are controllable by a retailer; others are not. Customer service includes identifiable, but
sometimes intangible, activities undertaken by a retailer in association with the basic
goods and services sold. It has an effect on the total retail experience, and consists of two
components -- expected services and augmented services. In relationship retailing, a firm
seeks long-term bonds with customers, rather than acting like each sales transaction is a
totally new encounter with them.

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To indicate the focus and format of the text
Retailing may be studied by using an institutional approach, a functional approach,
and a strategic approach. Although all three approaches are utilized in this text, the focus
will be on the strategic approach. The underlying principle is that a retail firm needs to
plan for and adapt to a complex, changing environment.
1.To show the value of strategic planning for all types of retailers
A retail strategy is the overall plan or framework of action that guides a firm. It
consists of situation analysis, objectives, and identification of a customer market, broad
strategy, specific activities, control, and feedback. Without a well-conceived strategy, a
retailer may stumble and/or be unable to cope with environmental factors.
2. To explain the steps in strategic planning for retailers
Situation analysis is the candid evaluation of the retailers opportunities and
potential problems. It looks at the firms current position and where it should be heading.
This analysis consists of defining and adhering to an organizational mission, evaluating
ownership and management options, and outlining the goods/service category. An
organizational mission is a commitment to a type of business and a place in the market.
Ownership/management options include sole proprietorship, partnership, or corporation;
starting a business, buying an existing one, or being a franchisee; owner management or
professional management; and being centralized or decentralized. The goods/service
category depends on personal abilities, financial resources, and time resources.
Objectives are the retailer's long- and short-run goals. A firm may pursue one or
more of these objectives: sales (growth, stability, and market share), profit (level, return on
investment, and efficiency), satisfaction of publics (stockholders, consumers, and others),
and image/positioning (customer and industry perceptions).
Next, consumer characteristics and needs are determined, and a retailer selects a
target market. A firm can sell to a broad spectrum of consumers (mass marketing); zero in
on one customer group (concentrated marketing); or aim at two or more distinct groups of
consumers (differentiated marketing), with separate retailing approaches for each.

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A broad strategy is then formed. It involves controllable variables (aspects of
business a firm can directly affect) and uncontrollable variables (factors a firm cannot
control and to which it must adapt).
After a general strategy is set, a firm makes and implements short-run decisions
(tactics) for each controllable part of that strategy. These actions must be forward-looking
and responsive to the external environment.
Through a control process, strategy and tactics are evaluated and revised
continuously. A retail audit systematically reviews a strategy and its execution on a regular
basis. Strengths are emphasized and weaknesses minimized or eliminated.
An alert firm seeks out signals or cues, known as feedback, that indicate the level
of performance at each step in the strategy.
3. To examine the individual controllable and uncontrollable elements of a retail
strategy
There are four major controllable factors in retail planning: store location,
managing a business, merchandise management and pricing, and communicating with the
customer. The principal uncontrollable variables affecting retail planning are consumers,
competition, technology, economic conditions, seasonality, and legal restrictions.
4. To present strategic planning as a series of integrated steps
Each of the stages in a retail strategy needs to be performed, undertaken
sequentially, and coordinated in order to have a consistent, integrated, unified strategy.

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RETAILERS:
Intermediaries are the middlemen and signify those individuals and institutions in
the channel that either take title to the goods and sell at profit or do not take title to the
goods but sell for commission. American marketing association defined the term middle
men as one who specialize in the performing operations of rendering services that are
directly involved in the purchase and sale of goods in the process of their flow from the
producers of the users. Marketing intermediaries are the individuals and the organizations
that perform various functions to connect the producers with the end users.
The individuals and institutions perform the functions of procurement, storage,
packing, financing and transportation and counseling in linking the two ends. The
middlemen are classified as merchant and agent middle men. The retailers are come under
the category of merchant middlemen. Retailing includes all the activities directly related to
the sale of goods and services to ultimate consumers for personal or non-business use.
Functions:
Retailer as the last list in the chain of distribution performs many functions of
marketing of all these following are the most significant ones.
Buying and assembling:
Retailer has to assemble products from different manufacturers and wholesalers as
he is to stock wide variety of stock of products to meet the varied and small requirements
of large number of customers. This assembling is possible through the process of buying.
Buying is a continuous process is involving selection of best and the most economical and
dependable sources of supply.
Warehousing:
Retailer is a satisfy value releasing the goods in quantities of different varieties and
price ranges according to the consumer needs. Warehousing makes possible holding the
stocks to match between the consumer demand and the wholesalers or manufacturer
supply conditions.

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Selling:
The final aim of retailer is to sell the products bought by him. Retailer is rightly
called as the buying agent of consumers. He disposes the goods to the consumers.
Successful retailing needs good deal of salesmanship tactics.
Risk shouldering:
Risk shouldering is the basis responsibility of a retailer arising out of physical
deterioration and changes in process. The risk of loss is seen number of forms such as
natural calamities fire, flood, cyclone, earthquake, spoilage, weather condition and fashion
and so on.
Grading and packing:
Retailers undertake secondary or second rank grading and packing activities left by
the manufacturers and wholesalers. As he sells in loose packs and very odd lots, packing
assumes a particular importance. Such packing can be highly standardized or as per the
individuals requirements.
Financing:
In the whole scheme of marketing, the contribution of retailers is really worth
emphasizing in so far as consumer financing. His financing consists of credit granted on
liberal terms to the consumers, investment mode in large variety of stocks, the expenses to
hold stock, salaries and wages of watch and ward and other trade expenses.
Advertising:
Retailers are the best agents to advertise the products, services and ideas. Retailers
do undertake shop display, distribution of sales literature, introduction of new products in
a convincing way as he recommends what is right or wrong to a particular customer.
Supply of market information:
Retailers are in close and constant touch with customers, he clearly keenly
observes, studies the consumer behavior changes in tastes and fashions. This collected
information is passed on the whole sellers and the manufactures for their perusal and
necessary action for future adjustment and success.

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Services:
While pertaining the functions of trade, retailers do under valuable services to the
manufacturers and wholesalers and the final users.

SERVICES TO MANUFACTURERS AND WHOLESALERS

Offer opportunity:
Retailers give the manufacturers and the producers the opportunity of presenting
their products to the consumer by providing the necessary vent and access.
A big relief:
The manufacturers and the wholesalers are really relieved of the head breaking odd
hob of retailing to the individuals in pretty small quantities.
Provision of information:
Retailers do provide the wholesalers and manufacturers the information about the
latest consumer movements both physical and psychological. It is easily possible as they
are direct contact with the consumers.
Reduce the risk of loss:
Retailers are the spokesmen of consumers, they warm the producers as to what to
produce? How much? Of what quantity? At what price range? This makes the wholesalers
to stock only those goods vended by the consumers thus reducing the risk of losses.

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Service of consumers
Largest choice:
Retailers assemble products of different varieties from good many producers
enabling the consumers to have largest choice as to cost, quality, varieties and so on.

Relief from storage:

Retailers hold goods on behalf of the consumers. Being at convenient place,
suitable stock and in convenient lots, the consumers have ready access to the store. Their
capital lock-up is reduced, in addition to the material loss.
Extra service:
Many retailers grant extra concession and facilities such as door delivery,
telephone order, credit sales, and return on replacement of goods not found suitable.
Supply of information:
Retailer is and expert adviser as to what to buy? He advises his customers. He
introduces new products that are superior to earlier models thus improving the consumer
satisfaction.

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NEED OF THE STUDY
Marketing is typically seen as the task of creating, promoting and delivering goods and
services to consumers and business.
A buyers satisfaction is a function of the products perceived performance and the
buyers expectations is said that higher satisfaction leads to higher customer loyalty, many
companies today are aiming for TCS Total customer satisfaction.
It is very essential to conduct feed back survey from time to time to know awareness
levels towards new products, satisfaction towards product performance. Sangam is on of
tough challenger, who is striving to be No.1 in dairy industry. In order to achieve the
desired objective, it should ensure that consumers needs are addressed to their satisfaction
in a most willing manner at the same time its marketers duty to check satisfaction levels
and to know the feedback from the market.

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OBJECTIVES OF THE STUDY

To review the market position of Sangam dairy.

To analyze the retailers perception on distribution and the services of the Sangam
dairy.

To analyze the factors affecting the market share of Sangam dairy.

To review the problems of the retailers with regard to distribution by the Sangam
dairy and to get their suggestions.

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METHODOLOGY
Methodology is said to be the procedure or way in which the project work has been
done. In this project work, the methodology consists of some steps. These steps are as
follows.

Data collection methodology.

Sample design.
Analysis and interpretation.
Data collection methodology can be broadly classified as:

1. Primary data.
2. Secondary data

PRIMARY DATA:
Primary data are those that are original in character and are collected a fresh as the
primary data is information collected for the first time; there are several methods in which
the data is collected.
The methods are:

Surveys
Experiments
Observation
Of these 3 methods, personal interview was used for collecting the data in the present
study.

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Questionnaire:
It is a formalized set of questions which are logically and systematically arranged
to collect the information useful for the proposed study. The questionnaire in this study is
structured containing a limited number of questions, which are easy to understand. The lay
out of this questionnaire is framed in such a way that confusing and recording errors are
minimized. This study is carried with the help of a structured questionnaire.
Interview method:
The interview method of collecting data involves presentation of oral-verbal
stimuli and reply in terms of oral-verbal responses. This method can be used through
personal interviews and if possible, through telephone interviews.
Personal Interview:
It is the face to face systematic conversation between the interviewer and the
respondents to elicit information. This method is chosen because through this more
information can be gathered easily. Bias is less and there is increased accuracy and
flexibility.
SECONDARY DATA:
Secondary data refers to the use of information already collected and published or
unpublished. The source is basis journal, reports etc.
Sources of Secondary data:
Annual report of the company.
Textual information available in the library.
Web sites.
Magazines

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Sampling method for study or plan:
The sample method or plan is the procedure or way in which the sampling has been
done. As no project or research can be done taken to consideration the whole of the
population or universe, the concept of sampling is used. As per the concept of sampling,
only some sample is taken from the universe in order to find out the result. Convenience
method is taken as the sampling method.
Type of universe:
The universe can be finite or infinite. In finite universe the numbers of items are
certain but in case of an infinite universe the number of items are infinite, i.e. we can not
have any idea about the total number of items.
Sample size:
This refers to the number of items to be selected from the universe. The size of
sample should neither be excessively large nor too small. The sample taken for this study
is 50.
Sampling unit:
A decision has to be taken concerning a sampling unit before selecting a sample.
Data analysis:
This is the process which helps to eliminate the unnecessary data and to collect
relevant information which helps in problem solving and to overcome the problem of an
enterprise or an organization

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PRESENTATION OF THE STUDY

Chapter one deals with introduction of the retailers opinion.

Chapter two deals with need for the study, objectives, methodology of the study,
sampling methodology, presentation of the study, and limitations of the study.
Chapter three deals with industry profile and company profile.
Chapter four deals with data analysis and interpretation.
Chapter five deals with findings, suggestions, and conclusion.

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LIMITATIONS OF THE STUDY

The response given by the respondents may be biased.

The duration for the project was limited to 35days only.
The study is confined to GUNTUR city only.

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PLAN OF THE STUDY

Chapter-I

Introduction

Chapter-II

Objectives & Methodology

Chapter-III

Industry Profile & Company Profile

Chapter-IV

Data Analysis & Interpretation

Chapter-V

Findings & Suggestions

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INDUSTRY PROFILE
Introduction:
The popular adage nothing succeeds like success is applicable to the
dairy development in India. If the country witnessed the green revolution leading
to self-reliance in food grains in the sixties and the seventies, the decades of the
eighties and the nineties witnessed the white revolution. Indian total milk
production is ranked first in the world followed by the United States. Initially
dairying was largely an unorganized activity. By and large land holding farmers
kept cattle mainly for bullock production. Milk was essentially a byproduct. The
surplus after domestic consumption was either converted into conventional
products mainly ghee and sold to middle men who cater to the needs of the market.
As India enters an era of economic reforms, agriculture, particularly the
livestock sector, is positioned to be a major growth area. The fact that dairying
could play a more constructive role in promoting rural welfare and reducing
poverty is increasingly being recognized. For example, milk production alone
involves more than 70 million producers, each raising one or two cows/buffaloes.
Cow dung is an

important input as organic fertilizer for crop production and is

also widely used as fuel in rural areas. Cattle also serve as an insurance cover for
the poor households, being sold during times of distress
There was an increasing demand for milk from the urban areas. There arose a
need for the farmers to increase the production of milk. Since the demand in the
urban scenario is rapidly increasing so do the farmers generate the supply? Further
the new dairy plant capacity approved under the Milk and Milk products order
(MMPO) has exceeded 100 million l/p/d. The new capacity would surpass the
projected rural marketable surplus of milk by about 40 percent by 2005.
EVOLUTION:
The origin of dairy farms under public management dates back to 1886
when the department of Defense established a few dairy farms in that year to

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supply milk and milk products to the British troops. The next step was initiated
during the First World War
In 1914, the Department of Defense on the advice of the Board of
Agriculture advised the Government in 1916, to appoint imperial dairy expert. The
next important step was the decision to conduct a census of livestock. The Board of
Agriculture carried out the livestock census in 1919 as a preparatory action for
planned dairy development. In 1920, the imperial expert recommended to the
Government for the establishment of a training center to meet the manpower
requirements for managing the
Defiance Dairy Farms. By this time there were three dairy farms and until 1923 the
British Governments approach towards dairying was confined to milk
requirements of the military only. After 1923, diploma course in dairy were started
at Bangalore.
Dr. N.C. Wright, Director, Dairy Research institute, Scotland who
was invited to India in 1936 for reviewing the progress of dairying in the country
has made two recommendations: 1. Industry needs have to be solved by developing own technology and
technologists in the country.
2. India is country of villages, of which most inhabitants are small, marginal
farmers and landless laborers. Development should be promoted only on cooperative lines.
In 1937, the Lucknow Milk producers co-operative Union limited
was established paving the way for the organization of such union in districts and
state.
In 1945, the Famine enquiry commission in its report emphasized the
need for developing fodder supply for increasing milk production and
recommended the adoption of mixed farming with a place for fodder and crop
rotation. As a sequel to this, under the Greater Bombay Milk Scheme, milk was
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procured from Kaira district, Gujarat by the private dairy. That gave way to the idea
of creating an institutional structure for dairying on co-operative lines.
THE ROOT CAUSE:
In the forties one firm Polsons dominated the dairy industry.
Established by rather enterprising gentlemen who discovered in Kaira district, of
what was then Bombay presidency, produced a good deal of milk. He established a
creamery and for a while the name poisons was synonymous with butt-much as
Amul is today.
One of Paulsons businesses is to supply milk to Bombay. As Karia
district was an abundant source of the commodity, Polson was chosen to procure it
from there. He in turn, entered into an arrangement with a number of contractors
who actually went to the villages and collected the milk. Everyone was happy.
Bombay relieved reasonably good quality milk and Polson made a handsome profit.
The contractors too manage to earn large margins by over quoting the farmers. It
was only the poor farmers who were unhappy for it. They invested in the animal
feed and fodder and they put in their labor; yet, it was they who received the
smallest share of the Bombay consumers rupee. The arrangement benefited
everyone but them.
THE FIRST STEPS FORMATION OF KARIA UNION
Realizing that something needed to be done about the unequal
balance of wealth, they turned to Sardar Vallabhai Patel for advice. Sardar Patel
knew that their only chance of earning a decent income was when they themselves
gain control over the resources they created. He also knew that the co-operatives
offered them the nest chance of gaining that control. So he advised them to stop
selling milk to Polson and form a co-operative milk producers union (AMUL) was
born in 1946
The co-operative then passed through some very difficult times and
eventually become a model of co-operative dairying throughout the world.

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The AMUL co-operative was started by a handful of members initially
handling only 250lt milk a day. Over the years, this union has grown from strength
to strength and today AMUL handles over 80,000 it of milk per day. There are 91
village Milk cooperative societies. In 1988-89 the turnovers were 1,700 million and
its assets were Rs.200 millions.
The focus of the union was on production by the masses, not mass
production. By the early sixties, the modest experiment in Kaira had not only
become a success, people began to recognize it as such. Farmers from all parts of
Gujarat came to learn it. They went back to their own districts and started their own
cooperatives. The result-together, the district milk producers unions of Gujarat own
the Gujarat co-operative Milk marketing federation which markets the milk and
milk products manufactured by its owners. Last year the federations turnover was
over Rs1700 cores making it the largest in the food industry? Besides the dairy
plant, the AMUL owns cattle feed plant producing over 400 tons of balanced cattle
feed a day. It manufactures a wide range of products, including milk power, butter,
cheese, chocolates and malted beverages.
ESTABLISHMENT OF NATIONAL DAIRY DEVELOPMENT BOARD
(NDDB):
The Government of India had established the National Dairy Development
Board (NDDB), an autonomous body headquartered at Anands Co-operative in
India. In order to develop dairy in India, NDDB drew plans for operation flood.
THE NEXT ACHIEVEMENT: OPERATION FLOOD
In the late sixties, the board drew up a project called Operation Flood
(OF) meant to create a flood of milk in Indias villages with funds mobilized from
foreign donations. Producers co-operatives, which sought to link dairy
development with milk marketing, were central plank of this project. The Operation
Flood, which started in 1970, concludes its third phase in 1996 and has to its credit
these significant results:

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The enormous urban market stimulus has led to sustained

Production increases, raising per capita availability of milk to early 200
grams per day.
The dependence on commercial imports of milk solids are alone away
with.
Modernization and expansion of the dairy industry and its infrastructure,
activating milk grid.
Marketing expanded to supply hygienic and fair priced milk to some 300
million consumers in 550 cities and towns.
A nationwide network of multi-tier producers co-operative, democratic
in structure and professionally managed, has come into existence.
Millions of small producers participate in an economic enterprise and
improve the quality of their life and environment.

OPERATION FLOOD:
A recent World Bank audit shows that of the Rs.200 crores bit invested in
Operation Flood 2, the net return into the rural economy has been a whopping
Rs.24, 000 cores per year over a period of ten years, or a total of Rs.40, 000 cores
in all. No other major development program has matched this input-output ratio.
Operation Flood, launched in 1970, has been instrumental in helping the farmers
mould their own development. Thus helping reach milk consumers in 700 towns
and cities though a National Milk Grid It also helped eradicate the need for
middlemen thereby reducing the seasonal price variations As a result of the cooperative structure the whole exercise of production and distribution of milk
products has become economically viable for farmers to undertake on their own. In
this manner the farmer himself can enjoy the fruits of his own labor, instead of
surrendering a majority of the profit to corrupt middlemen.

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THREE PHASES OF DEVELOPMENT
The scheme sought to establish milk produces co-operatives in the
villages and make modern technology available to them. The broad objectives are
to increase milk productions (a flood of milk) augment rural incomes and transfer
to milk producers the profits of milk producers the profits of milk, marketing which
are hitherto enjoyed by well-to-do-middlemen.
PHASE1:
Phase 1 of Operation Flood was financed by the sale within India of
skimmed milk powder and butter oil gifted by the EC countries via the world food
program. As founder-chairman of the National Dairy Development Board (NDDB)
of India Dr. Kurien finalized the plans and negotiated the details of EEC assistance.
He looked after the administration of the scheme as found-chairman of the
erstwhile Indian Dairy Co-operation, the project authority for Operation Flood.
During its first phase, the project aimed at linking Indias 18 best milk sheds with
the milk markets of the four metropolitan cities of Delhi, Mumbai, Calcutta and
Madras.
PHASE2:
Phase 2 of the project, implemented during 1981-85 raised this to some
136 milk sheds linked to over 290 urban markets. The seed capital rose from the
sale of WFP/EEC gift products and World Bank loan had created, by end 1985, a
self-sustaining system of 43,000 villages co-operatives covering 4.25 million milk
producers. Milk powder production went up from 22,000 tons in the pre project
year to 1, 40,000 tons in 1989, thanks to dairies set up und Operation Flood. The
EEV gifts thus helped to promote self-reliance. Direct marketing of milk by
producers co-operatives resulting inn the transfer of profits from milk contracts
increased by several million liters per day.

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PHASE3:
Phase 3 of Operation Flood (1985-1996) enabled dairy co-operatives to
rapidly build to the basic up the basic infrastructure required to procure and market
more and more milk daily. Facilities were created by the co-operatives to provide
better veterinary first-aid health care services to their producers members.
ACHIEVEMENTS UNDER OPERATION FLOOD:
The main objective of Operation Flood was achieved by vertical
integration of milk procurement, processing and marketing through a three-tier cooperative structure by organizing 60,280 village co-operative societies (VCS) in
173 milk shed having 6.61 million farmers by September 1989. Not only that, there
are today, 1230 rural milk processing plants of 13.9 MLPE (million liters per day)
capacities.
The milk production has increased from 20.74 million tons in 1969-70 to
4807 million tons in 1988-89 while consumption capacity increased from 107 Kg/
days in 168 Kg/day. The increase in milk production was 6.6 per annum without
altering the basic land-holding structure, farming system and ownership of cattle.
The infrastructure build to link producers directly with the urban
consumers had helped to transfer 75% of the consumption price to the producer
which was the main incentive to increase milk production. Payments received by
the farmers rose from Rs.1.75 billion during 1980-81 to over Rs.8 billion by 198889
The milk grid was developed to link good milk producing areas with the
four metropolitan city milk plants by rail milk tankers and road milk tankers. Today
milk is transported from one part of the country to another by rail tankers.
With increase in local production of milk powder and butte, the import of
commodities has been significantly reduced. The import accounted for 60% of the
milk throughout the mid fifties. While it had dropped to 6% by the mid-eighties

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MBA Programme
There is no more rationing and quota card system, for the purchase of milk
for consumers convenience. UHT tanned shelf milk was introduced in the mideighties which are slowly gained in Popularity. Operation Flood was successful
because the
Project was based on a sound and successful model of the Anand dairy cooperative. The efficient handling of the gifted commodity was the land mark of
success of Operation Flood.
DEVELOPMENT OF DAIRY IN NINTIES:
The momentum gained in the dairy through co-operatives during the last 20
years will now take India into nineties as major dairying country of the world. The
countrys milk production in the early sixties which was about 20 million tons has
touched a record of 56 million tons. It is likely to reach about 80 million tons by
2000 AD. India which one time was dependant on other countries for products such
as milk powder, table butter and cheese has now become self sufficient. It has even
started exporting some of them in small quantities simultaneously efforts are made
to expand milk procurement, processing and marketing to meet the growing
demand for milk products.
DAIRY CO-OPERATIVES:
In our country, the co-operative movement owes its development to the
initiative of the Government. It is only during 1950s that Tamil Nadu, Gujarat and
Uttar Pradesh took some important steps in organizing Dairy Co-operative sector,
provided a model for the milk producers. Co-operatives in Gujarat and other states
provided guidance and policy direction.

State level federations of Dairy Co-

operatives have been formed in different states.

The entire institutional network of the co-operatives comprises of 22
Federations, 173 unions, 75 thousand Dairy Co-operative societies and over 7
million farmers. Members during 1989-90 collected an average 10 million it of
milk in a day and paid about 1200 cores of rupees in a year.

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MAIN AIM OF DAIRY INDUSTRY IN CO-OPERATIVE SECTOR
Formation of co-operative units of milk producers in every village.
To improve cattle wealth of goods breed which are imported for milk
production?
To avoid contaminated diseases buy using proper medicines and injunctions.
Providing the availability of good breed seeds so as to improve the cattle
feed.
Industry mobile hospitals to provide free medical facilities to cattle of the
dairy and avoid diseases.
So from the above aims of the co-operative unions, it is crystal clear that
the co-operative sector would be instrumental in increasing the milk production.
To put the above programmers to action in our district with the co-operation
of National Dairy Development Board, a Three-Tier programmed was started in
1980. In relation to it 198 milk producers co-operative unions have been set up at
village level.
THE THREE-TIER SYSTEM:
The Three-Tier system consists of:
1. Primary Dairy Co-operative societies at village level
2. Co-operative Unions district level.
3. Federation at state level.

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MILK SHEDS/UNIONS:
Operation flood programmer has been identified into milk sheds/unions.
NO

MILK SHEDS/UNIONS

DISTRICTS

Visakha

Srikakulam, Vizianagaram, Vizag

Godavari

East and West Godavari

Krishna

Krishna

Guntur-Prakasam

Guntur-Prakasam

Chittor

Chittor

Kuddapha

Kuddapaha

Kurnool

Kurnool

Nalgonda-Ranga reddy

Nalgonda-Ranga reddy

Medak-Nizamabad

Medak-Nizamabad

COOPERATIVE MARKETING:
Cooperative dairy societies have played a major role in the marketing of milk
in India. Major quantity of milk is produced in the rural area while the profitable
market for milk and milk products is largely in urban areas. However the quantity
of milk available for sale for an individual farmer is very less. It becomes difficult
for them to send such a small quantity to urban markets on their own. They face a
number of problems such as inadequate transport facilities and absence of proper
marketing. Therefore the role played by the dairy Cooperatives in building.
Addition to the arrangement of sale of milk, the dairy cooperative are also expected
to provide veterinary aids, supply cattle needs and arrange for the supply of credit
for related purpose.
LOAN TO MEMBERS:

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The milk cooperatives cannot extend loans to the farmers directly. Instead they
can offer guarantee to the amount borrowed by the farmer. It was observed that
from small size societies about 7 members received loans amounting to Rs.42, 000.
The loan was mainly offered for the purpose of purchase of cross-breed cows. In
Medium, purpose of purchase of cross-breed cows and 29 members
Got the loan worth Rs.7, 50,000 for purchase of buffaloes
GAINS TO THE MEMBERS:
The co-operative society provides loans, fertilizers, and fodder, seeds,
breeding and veterinary facilities to augment the milk production. At present there
are 238 dairy plants in India comprising of public co-operatives and private sectors.
Co-operative milk societies are organizations of producers and the not only
arrange marketing of surplus milk but also supplement the income of the producers,
who are generally agriculturists, mainly in rural areas. These societies also help the
consumers to have pure and unadulterated milk at reasonable price.
Co-operative marketing may be defined as a co-operative association
formed to perform one or more of the marketing functions relating to the marketing
association or an agricultural co-operative marketing society, need not necessarily
perform all the marketing functions. Normally these functions include services
such as selling agents, supply of accurate market information, standardization
storage, assembling, packing and processing services.
The primary objective of the co-operative is to maximize the income of its
members as much as possible. To achieve this primer
Objective co-operative marketing aims at obtaining higher prices for the
producers and minimizing the costs of marketing.
To obtain higher prices for its members a co-operative marketing society
tries to achieve the following:
1. Development of orderly marketing.
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MBA Programme
2. Adoption of better selling methods.
3. Improvement of quality.
4. Elimination of trade abuses.
5. Improved bargaining position for the members as sellers.
6. Improvement of standardization and grading.

CREDIT SUPPLY AND TECHNOLOGY MISSION FOR DAIRY

DEVELOPMENT:
The national co-operative development co-operation has been providing
financing assistant to dairy co-operatives for organizing medium and small size
dairy processing plant and milk filling centers. The co-operation has sanctioned a
total loan for dairy units.
In addition small farmers development agency (SFDA), marginal farmers
and

agricultural

labor

agency

(MFLA),

INTEGRATED

RURAL

DEVELOPMESNT SCHEMES (IRDS) and integrated tribunal development

agency b have their own tasks of providing incentives of dairy.
NATIONAL MILK GRID:
In the seventies the national milk grid was a distant dream. But the next
decade saw it taking shape. The benefits from such an arrangement are for both
consumers and producers.
The development of national milk grid mainly took place for solving the
problems of the producers. The producers form high milk producing districts not
only suffered loss because there were no tankers for the extra quantity of milk
available during the flush season were lower than those paid during the les/a
season. The gird solves the problem of the producers.

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From the consumers side also this Grid is useful. In 1951 there were
20,900 towns and in 1971 this number has risen to 62,360. During this period the
urban population has increased from 62.4 million to 109.1 million, a growth of
74.8% there was demand for milk from the urban consumer and they also had the
necessary purchasing power.
The demand was felt in the four metropolitan cities of India i.e., Bombay,
Calcutta, Madras and Delhi which have a combined population of around 16
million (1971). City milk traders brought the milk by bus, trains and vans. But
they could not maintain adequate supply of milk with a growing demand from
urban consumers. The grid brought more supply of milk to the consumer. The grid
brought more supply of milk to the consumer throughout the year at rational prices.
In order to increase the milk supply and to prevent migration of cattle to the
cities Plans were drawn to establish. Cattle colonies, but this city cattle colony
project was not successful. Later, five-year plans were drawn to increase milk
production.

Between 1950 and 1970 the total investment was around 11,400

million.

NEED FOR DIARY DEVELOPMENT

In India, the land mass is 304.8 million hectares (1987-88) while the gross
irrigated areas as a percentage of cropped area is 32.8%.
In 1950, the cow and buffalo population was 196 million and had increased
to 247 million by 1985. It has reached above 300 millions in 1994. The country
has the largest cattle and buffalo populations in the world accounting for more than
one-sixth of the worlds cow and more than one-half of the worlds buffalo
population.
In 1988, the human population was about 800 million and this has been
growing at 2.2% per annum. Such a large human and cattle population has to be
sustained on a limited landmass, which has led to intensive farming. The serious
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constraint that the Indian agriculture faces is the problem of disguised
unemployment and the resultant problem of poverty and inequality of income
distribution. Hence development plans have to prepare for efficient utilization of
human, cattle resources for maximum productivity of land for creating employment
opportunities channeling the unemployed and under-employed into productive
works, dairy farming is much important in serving this purpose. Dairy farming can
also absorb large number of agricultural laborers and those people who migrated
from rural to urban areas in search of employment opportunities throughout the
year. The dairy industry plays a vital role in improving the rural economy which is
mainly agricultural based.
ADVANTAGE OF DAIRY INDUSTRY:
o Strong procurement.
o Infrastructure.
o Presence of highly skilled manpower and cheap labors.
o Large number of processing and allied facilities.
o Milk production pattern.
INDIA: WORLDS LARGEST MILK PROCUDER
India has become the worlds no.1 milk producing countries, with output
in 199-2000 (marketing year ending March 2000) forecasted at 78 million tones.
United States, where the milk production is anticipated to grow only marginally at
71 million tons, occupied the top slot till 1997. In the year 1997, Indias milk
production was on par with U.S. at 71 million tones. The world milk products in
1988 at 557 million tons would continue the steady progress in recent years.
Furthermore, the annual rate of growth in milk production I India is between 5-6
percent, against the worlds at 1%. The steep rise in the growth pattern has been
attributed to a sustained expansion in domestic demand, although per capita
consumption in modest-at 70 Kg of milk equivalent.
ANNUAL MILK PRODUCTION HAS TREBLED

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Indias annual milk production has more than trebled in the last 30 years,
rinsing from 21 million tons in 1968 to an anticipated 80 million tons in 2001. This
rapid growth and modernization is largely credited to the contribution of dairy
cooperatives, under the Operation flood (OF) project, assisted by many multilateral agencies, including the European Union, the world bank, FAO and WFP
(world food program).
In the India n context of poverty and malnutrition advantages as well as providing
supplementary income to some 70 million farmers in over 500,000 remote villages.
Milk Production in India

Milk Production
Year
(Million tons)
2004-2005

85.72

2005-2006

88.92

2006-2007

91.54

2007-2008

95.87

2008-2009

100.10

2009-2010

115.15

2010-2011

130.52

2011-2012

127.5

Worlds top milk producers:

Countries

2009

2010

2011

2012

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MBA Programme
India

74

71

68

65

U.S.

71

71

70

68

Russian federation

33

34

36

33

Pakistan

22

21

20

18

Brazil

22

21

19

18

World

557

549

542

539

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DAIRY DEVELOPMENT IN ANDHRA PRADESH
During industry programs were primarily initiated with the help of United
Nations International Childrens Emergency Fund and Agricultural Organization
and freedom from Hunger campaign organization of U.K. these organizations
helped a lot in the establishment of dairy units at Hyderabad and Vijayawada in
1967 and 1969 respectively, which led to pioneer dairy development in Andhra
Pradesh.
With the implementation of operation flood II program in Andhra Pradesh,
the tempo of dairy development has gained momentum, providing a new thrust for
the eradication of poverty and unemployment in rural areas and brought greater
awakening and confidence among milk producers to manage their own affairs
through dairy co-operatives in Andhra Pradesh.
MILK POTENTIAL:
Andhra Pradesh has excellent potential for milk production with progressive
farmers who are more receptive to the new technology and scientific practices. The
estimated milk production is 40lakh its per day. Today a strong wave of white
revolution is sweeping creating a new hope of eliminating socio-economic balance.
Andhra Pradesh is poised to be the dairy land of India playing an importance role in
National Milk Grid.
GENESIS OF ANDHRA PRADESH DAIRY INDUSTRY
Planning for organized dairy industry in Andhra Pradesh was conceived in
1956 and a pilot milk supply scheme was started in 1960-61 as preclude for an
integrated milk project at Hyderabad and Vijayawada. UNICEF provided dairy
equipment worth Rs.1crore.

The main objective is linking up and supplying

surplus milk from the producing area to the consuming area.

Andhra Pradesh Dairy Development Corporation was formed on 24th
February, 1974 as a stage government undertaking for the mission of industrializing
rural dairying. Extensive information was developed to produce milk from every
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nook and corner of the state and to tap the untapped milk sector within the main
objective of generating employment and opportunities to rural people. It paved a
way providing employment to nearly 15,000 employees and organizes as many as
87 dairy units including 7 milk product factories, 13 district dairies, and 22 chilling
centers.
More than 3.5 million producers get Rs.20crores per annum for supplying
milk of which 69% of total beneficiaries belong to small and marginal farmers,
agricultural labor and other working section of rural community. Every day 8.2 lakh
its of milk is collected. Every tenth liter of milk produced in the country comes
from Andhra Pradesh.
MAIN AIM OF SETTING UP OF DAIRY INDUSTRY IN ANDHRA
PRADESH:
The majority of area in Guntur district in our state is having agriculture as the
main source of livelihood. Dairy industry occupies second place in the earning the
livelihood, next only to agriculture.

Dairy industry now has stepped into the

cooperative sector to help the small and backward farmers by making them as
partners. This fact is also lucidly explained by the then government of Andhra
Pradesh.
The expansion of this is to meet the needs of the people and help the
farmers and villages because milk and cattle are among the prime sources of
income for them.
NECESSARY CONDITIONS FOR THE SUCCESS OF CO-OPERATIVE
MARKITING:
Effective control of the organization must remain in the hands of the farmer
members selling their produce through it.
Members must remain loyal to the organization and as a proof of their
loyalty they should sell their products through the organization only.

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Expenses incurred and profits earned by the organization must be distributed
amongst members on fair and equitable basis.
There should be efficient and cost effective transport facilities for the
distribution of milk and milk products to laces where there is good demand.
The processes involved should be innovative, both in the production and the
distribution of the dairy product

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COMPANY PROFILE
Introduction:
Under the operation flood I programs, Guntur district was selected to
develop dairy activities on annual patterns keeping in view the three-tier system of
village dairy cooperative society at the village level, managed by the elected
representatives of milk producers, a co-operative union Ltd., was registered under
A.P. Co-operative societies act 1964 with registration no: 83DD dated 23/02/1997
with 81 affiliated Milk producers cooperative societies.

Later the Union has

converted into AP Mutually Aided co-operative society Act 1995 with a registration
number: AMC/GNT/DCI/97/28 DT 1-2-1997. It is the first union Registered Under
model act in India.
ORGANIZATION SET-UP OF SANGAM DAIRY
--- Senior manager (procurement & Inputs manager)
--- Senior manager (senior accounts officer)
---Senior manager (dairy engineer)
--- Senior manager (production manager)
Managing Director

--- Other managers

--- Labors welfare officer
--- Manager for materials
--- Quality control manager
--- Marketing manager

Source:

Sangam Dairy, Vadlamudi.

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FARMERS CONTRIBUTION
Milk producers of Krishna, Guntur and west Godavari district have
generously donated for the purchase of 34.46 acres of land at the cost of Rs.15lahs
before initiating this project, during 1973-74.

Further 53 acres of land was

purchased for the location of technical inputs and staff quarters.

ANAND PATTERN
The Anand Pattern advocated an integrated approach to the dairy
development under Co-operative sector by providing necessary technical inputs for
the raid progress of Dairy Industry.

In this pattern the real involvement of

producers are to be seen, where the village Dairy cooperative societies as well as
the district union are managed by the producers themselves. The producers have
got a say in determining the price of commodity they produce. This idea is really a
fantastic approach and a boon to the farmers. The new outlook in Anand pattern is
to provide incentive (inputs) to the farmers to increase the production, maintaining
good cattle by improved practices of breeding, feeding and management through
farmers induction programmed which is also part of Anand pattern. Viability of
the village Dairy Co-operative societies will also be taken care in this pattern.
Sangam Dairy Logo

OPERATION FLOOD PROGRAMM

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OPERATION FLOOD-I:
Dairy plant handling capacity of 1.5 lakh liters of milk per day, besides
facilities to manufacture 12 months tons of skimmed milk powder, 8 tons of button,
2 tons of Ghee and casein from milk, was established with a cost of Rs. 2.88 crore.
Facilities to provide technical inputs like free veterinary aid: cattle insurance
and artificial insemination were provided. Fodder development and cattle feed on a
no profit; no loss basis was created with an expenditure of 1.2 crores.
OPERATION FLOOD-II:
Under Of-II, the dairy processing capacity had been increased from 1.5 to 2.5
lakh per day with an expenditure or Rs 3.6 crores.
OPERATION FLOOD-III:
Crores of rupees were allotted to the milk shed for the expansion and
improvement of the dairy plant Chilling centers and technical input activities. All
the above finance is 70% loan 30% grant. In addition to this our government gave
an amount of Rs. 81 lakhs towards the construction of quarters, technical inputs
building, which is treated as share capital of the government. The total value of
assets of this dairy as on today is Rs. 21.6 crores.
ASEPTIC PACKAGING STATION:
Popularly known as tetra-pack milk this was established at the Dairy with a
cost of Rs. 2.5 crores. With this, milk can be packed in a special type of laminated
paper bags, which can preserve milk for months at room temperature.
ASCEPTIC PACKAGING STATION: SANGAM DAIRY
VADLAMUDI
Aseptic milk or sterilized long shelf life milk is a unique way of milk
preservation, where the milk is packed in disposable and laminated paper cartoons
with 3 months shelf life. The essential features of this pack are to provide milk

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packed as a grocery item, to store it for future usage, which offers convenience to
the consumer.
Aspect milk packing station was established initially during the year 1986
with an established cost of Rs.2.5 crores. The station is very well equipped to pack
milk for future usage.
The packs with 15 days shelf life earlier have been replaced with
machinery to pack milk with 3 months shelf life. The existing capacity is 50,000
Lt/day. After overcoming the initial setbacks with regards to market identification,
etc., now the products are making a smooth sailing in the cities like Hyderabad,
Vizag coal belt areas of Bhadrachalam, Khammam and Kothagudem, etc. there are
plan for future market expansion in Calcutta and Bangalore cities. Aseptic station to
pack novel milk products like sterilized cream, double milk with high fact and high
solids, products with no fat depending upon the need of the consumers is being
planned. The given table gives brief details of the milk packed in 500 ml. packs
from 1986-1999 year (in lack packs).
PACKETS IN 500 ML DURING 2005-2012
Production of tetra

Revenue generated

YEAR

Packet milk

(In Rs.laksh)

2005

(Lack packets)
63

526

2006

58

459

2007

65

441

2008

68

479

2009

61

461

2010

71

493

2011

78

530

2012

75

510

SOURCE: Sangam dairy annual reports.

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The unit is projecting a capacity of 15% utilization and making a steady
progress towards more efficiency and profitability.
MILK MARKETING: The union is meeting the fluid mill requirements in Guntur
town and other towns in Guntur District. On an average, they sell 40,000 liters per
day with in Guntur District. They are also marketing tetra pack milk in Guntur
district, Vizag, Calcutta, madras.
NATIONAL MILK GRID:
Sangam dairy is supplying milk to mother dairy, Calcutta through milk
tankers since 1980 and is also supplying condensed whole milk to mother dairy,
Calcutta since 1989 through rail milk tankers.
MILK PRODUCTS:
Sangam dairy manufactures table butter, white butter, and Ghee skimmed
milk powder and vijaya spray. The details of milk procurement, milk sales and
products manufacture with various capacities of the plant are enclose d here with.
EXISTING CAPACITIES:
Milk handling capacity:

2.5 lakhs liters/ day

Milk powder capacity (two powder

plants, L&T make stain co):

22 Mts/day

Table butter (4 packing

machine / CBMM and butter chip lets
machine):

8 Mts/day

Ghee:

10MTs per day

Storage of butter in deep freeze:

700 MTs per day

Boilers sections:

2 oil fires boilers,

Refrigeration:

2 coal fire boilers

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Milk chilling centers:

350 MTs per day

M.C.C. Narsaraopet:

5000 LPD

M.C.C. Gurazala:

5000 LPD

M.C.C. Vinukonda:

3000 LPD

M.C.C. Bhattiprolu:

3000 LPD

Cattle fed:

100 MTs per day

Aseptic packing:

50,000 MTs per day

Power
Machinery:

2746 HP+131 KW

For lighting:

122KW

(Source: MIS Sangam Dairy)

OBJECTIVES
Artificial insemination services.
Animal health.
Fodder development programs.
Fodder shed multiplication programs.
Sylvia pasture scheme.
Distribution of chaff cutters.
Enrichment of paddy straw with urea.
Cattle feed.
By-pass proteins feed.
Distribution of mineral nature on subsidiary basis.

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Cattle insurance.
Aid to society buildings.
Cross breed heifers subsidiary scheme.
Distribution of cross bred cows.
Training programs.

PRODUCTS OF SANGAM DAIRY:

Essentially the union procures milk from various collection centers located in
Guntur and Prakasam districts. The procured milk will be processed in the dairy
and then converted into different products apart from fluid milk. The union is
meeting the fluid milk requirements in Guntur town and other towns in Guntur
district on an average they sell 40,000 liter per day with in Guntur district.
Under the national milk grid, the milk has been supplied to Mother dairy in
Calcutta through rail milk tankers since 1980.
The milk products of dairy are as follows
Milk butter.
White butter.
Ghee
Skimmed milk powder.
Doodh peda.
Shakthi milk
Table butter.
Whole milk.
Basundhi.
Khala Khanda.
Milk cake.

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BY PRODUCT SECTION
By products section of Sangam Dairy consists of the following products.
1. Butter and ghee section
2. Power section
Frozen products section
Each of the above section are administered and under the control of
dairy manager.

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Physical Flow of Milk in Sangam Dairy

Producer

Village level coop, Societies

Procurement transport

Sangam Dairy

Transport Vehicles (Distribution)

Commission Agent

Consumer

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MBA Programme
Board of Directors
Sri. Y. Venkatarao

Founder

Sri. D. Narendra Kumar Chairman, M.L.A.,

Sri. K. Gopinath
Managing Director

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MBA Programme
Sri. G.C. Reddy

- National Dairy Development Board.

Sri. P. Krishna Rao

Sri. A. Marathi Vara Prasad
Sri. V. Dharma Rao
Sri. V. Srikrishna Prasad
Sri. P. Srinivasa Rao
Sri. J. Venkateswarlu
Sri. R. Ramarao
Sri. M. Bapuji
Sri. M. Venkateswarlu
Sri. P. Srinivasa Reddy
Sri. Ch. Narsa Reddy
Sri. S. Venkateswara Rao
Sri. D. Venkateswara Rao
Sri. G. Dhanunjaya Rao

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DATA ANALYSIS AND INTERPRETATION

TABLE IV .1

How long you are the supplier of Sangam dairy products?

INFERENCE:
The table reveals that majority of the sample members are above 5years supplier of
Sangam dairy.

N=50
Options

No. of respondents

Percentage of
respondents

Below 1 year

6%

2-3 years

14%

4-5 years

17

34%

Above 5 years

23

46%

Total

50

100%

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CHART IV.1

INTERPRETATION:
The above table reveals that 6% were the supplier of Sangam dairy products below
1 year, 14% are between 2-3 years, 34% are between 4-5 years, 46% are above 5 years.

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TABLE IV.2

Are you the 24 hour supplier?

INFERENCE:
The table reveals that majority of the sample members are not 24 hours suppliers.

N=50
Options

No. of respondents

Percentage of
respondents

Yes

16%

No

42

84%

Total

50

100%

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CHART IV.2

INTERPRETATION:
The above table reveals that 16% of the respondents are 24 hours suppliers, 84% of
respondents arent.

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TABLE IV.3

How many dairy products you may sell in a day?

INFERENCE:
The table reveals that majority of the sample members are selling above 100 milk
packets in a day.

N=50
Milk packets

No. of respondents

Percentage of
respondents

50-60

6%

60-70

8%

70-80

10%

80-90

14%

90-100

16%

Above 100

23

46%

Total

50

100%

CHART IV.3

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INTERPRETATION:
The above table reveals that 6% of respondents are selling 50-60 milk packets in a
day, 8% of respondents are selling 60-70 milk packets in a day, 10% of respondents are
selling 70-80 milk packets in a day, 14% of respondents are selling 80-90 milk packets in a
day, 16% of respondents are selling 90-100 milk packets in a day, 46% of respondents are
selling above 100 milk packets in a day.

TABLE No. IV.3.1

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Curd in packets

INFERENCE:
The table reveals that majority of the sample members are selling above 100 card
packets in a day.

N=50
Curd packets

No. of respondents

Percentage of
respondents

50-60

8%

60-70

14%

70-80

16%

80-90

12%

90-100

10%

Above 100

20

40%

Total

50

100%

CHART IV.3.1

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INTERPRETATION:
The above table reveals that 8% of respondents are selling 50-60 Curd packets in a
day, 14% of respondents are selling 60-70 Curd packets in a day, 16% of respondents are
selling 70-80 Curd packets in a day, 12% of respondents are selling 80-90 Curd packets in
a day, 12% of respondents are selling 90-100 Curd packets in a day, 40% of respondents
are selling above 100 Curd packets in a day.

TABLE No. IV.3.2

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Butter milk in packets

INFERENCE:
The table reveals that majority of the sample members are selling 50-60 butter milk
packets in a day.

N=50
Butter milk
packets

No. of respondents

Percentage of
respondents

50-60

18

36%

60-70

10%

70-80

16%

80-90

12%

90-100

18%

Above 100

8%

Total

50

100%

CHART IV.3.2

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INTERPRETATION:
The above table reveals that 36% of respondents are selling 50-60 Butter milk
packets in a day, 10% of respondents are selling 60-70 Butter milk packets in a day, 16%
of respondents are selling 70-80 Butter milk packets in a day, 12% of respondents are
selling 80-90 Butter milk packets in a day, 18% of respondents are selling 90-100 Butter
milk packets in a day,8% of respondents are selling above 100 Butter milk packets in a
day.

TABLE No. IV.3.3

Lassi in packets
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INFERENCE:
The table reveals that majority of the sample members are selling 50-60 lassi
packets in a day.

N=50
Lassi packets

No. of respondents

Percentage of
respondents

50-60

15

30%

60-70

16%

70-80

14%

80-90

8%

90-100

14%

Above 100

18%

Total

50

100%

CHART IV.3.3

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INTERPRETATION:
The above table reveals that 30% of respondents are selling 50-60 Lassi packets in
a day, 16% of respondents are selling 60-70 Lassi packets in a day, 14% of respondents are
selling 70-80 Lassi packets in a day, 8% of respondents are selling 80-90 Lassi packets in
a day, 14% of respondents are selling 90-100 Lassi packets in a day,18% of respondents
are selling above 100 Lassi packets in a day.

TABLE No. IV.3.4

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Doodhpeda

INFERENCE:
The table reveals that majority of the sample members are selling 50-60 doodhpeda
packets in a day.

N=50
Doodhpeda

No. of respondents

Percentage of
respondents

50-60

18

36%

60-70

18%

70-80

14%

80-90

12%

90-100

10%

Above 100

10%

Total

50

100%

CHART IV.3.4

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INTERPRETATION:
The above table reveals that 36% of respondents are selling 50-60 Doodhpeda
packets in a day, 18% of respondents are selling 60-70 Doodhpeda packets in a day, 14%
of respondents are selling 70-80 Doodhpeda packets in a day, 12% of respondents are
selling 80-90 Doodhpeda packets in a day, 10% of respondents are selling 90-100
Doodhpeda packets in a day, 10% of respondents are selling above 100 Doodhpeda
Packets in a day.

TABLE No.IV.4

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With the perishable dairy products (perishable with in 24 hours) what specific
problems you will encounter?

INFERENCE:
The table reveals that majority of the sample members are facing the problem for
rejection of taking the remaining packets.

N=50
Options

No. of respondents

Percentage of respondents

Storage

12

24%

The dairy did not

take the remaining
packets.

38

76%

Total

50

100%

CHART IV.4

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INTERPRETATION:
The above table reveals that 24% of respondents faced the problem with storage,
and 76% of respondents due to the rejection of taking the remaining packets by the dairy.

TABLE No.IV.5
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To what extent the company will pay its attention to the above said problems.

INFERENCE:
The table reveals that majority of the sample members are great extent the
company is paying attention of problem.

N=50
Options

No. of respondents

Percentage of respondents

Great extent

32

64%

To some extent

18

36%

Less extent

0%

Total

50

100%

CHART IV.5

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INTERPRETATION:
The above table reveals that 64% of respondents opined that to great extent the
company is paying attention and 36% expressed to some extent to the problem of those
vendors.

TABLE No.IV.6.

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If your answer to the above question is b (or) c states the specific problems which
the company is not responding.

INFERENCE:
The table reveals that majority of the sample members are facing the problem for
rejection of taking the remaining packets.

N=50
Options

No. of respondents

Percentage of respondents

Storage

39%

The dairy did not take

the remaining packets.

11

61%

Total

18

100%

CHART IV.6

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INTERPRETATION:
The above table reveals that 39% of the respondents are complaining that the
company is not responding to the storage problem, while 61% of respondents said that the
dairy is not returning the left over packets.

TABLE No.IV.7
In general are you satisfied with having the dealership with Sangam dairy?

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INFERENCE:
The table reveals that majority of the sample members are satisfied the dealership
of Sangam dairy.

N=50
Options

No. of respondents

Percentage of
respondents

Yes

42

84%

No

16%

Total

50

100%

CHART IV.7

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INTERPRETATION:
The above table reveals that 84% of respondents are satisfied with dealership of
Sangam dairy, 16% of respondents are not satisfied.

TABLE No.IV.8.1
Rate your answer for the following list of elements.

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a. Sangam prices in comparison with other dairies.

INFERENCE:
The table reveals that majority of the respondents opined that the price is very less
when compared to other dairies.

N=50
Options

No. of respondents

Percentage of respondents

Very high

4%

High

8%

Moderate

10%

Less

12

24%

Very less

27

54%

Total

50

100%

CHART IV.8.1

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INTERPRETATION:
The above table is apprehended that 4% of respondents agreed that the price of the
Sangam in comparison with other dairies is very high, 8% agreed as high, 10% as
moderate, 24% as low price and the remaining 54% as very less price when compared
with other dairies.

TABLE No. IV.8.2

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b. Response to your problems.
INFERENCE:
The table reveals that majority of the respondents are agreed that the response is
very high to words the problems.

N=50
Options

No. of respondents

Percentage of
respondents

Very high

21

42%

High

14

28%

Moderate

14%

Less

10%

Very less

6%

Total

50

100%

CHART IV.8.2

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INTERPRETATION:
The above table is apprehended that 42% of respondents agreed that the response
to words problem is very high, 28% agreed as high, 14% as moderate, 10% as low and the
remaining 6% as very less response of problem.

TABLE No. IV.8.3

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c. Retailer margins in comparison with other dairies.

INFERENCE:
The table reveals that majority of the respondents opined that the margins are very
less when compared to other dairies.

N=50
Options

No. of respondents

Percentage of
respondents

Very high

6%

High

10%

Moderate

8%

Less

16%

Very less

30

60%

Total

50

100%

CHART IV.8.3

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INTERPRETATION:
The above table is apprehended that 6% of respondents agreed that it is very high,
10% agreed as high, 8% as moderate, 16% as low and the remaining 60% as very less.

TABLE No. IV.8.4

d. Awareness among consumer.

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INFERENCE:
The table reveals that majority of the respondents opined that the awareness of
consumer is very high.

N=50
Options

No. of respondents

Percentage of
respondents

Very high

23

46%

High

12

24%

Moderate

14%

Less

8%

Very less

10%

Total

50

100%

CHART IV.8.4

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INTERPRETATION:
The above table is apprehended that 46% of respondents agreed that the awareness
of consumer is very high, 24% agreed as high, 14% as moderate, 8% as low and the
remaining 10% as very less.

TABLE No.IV.8.5

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e. Customer loyalty.
INFERENCE:
The table reveals that majority of the respondents opined that the customer loyalty
is very high.

N=50
Options

No. of respondents

Percentage of respondents

Very high

21

42%

High

15

30%

Moderate

14%

Less

10%

Very less

4%

Total

50

100%

CHART IV.8.5

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INTERPRETATION:
The above table is apprehended that 42% of respondents agreed that the very high,
30% agreed as high, 14% as moderate, 10% as low and the remaining 4% as very less.

TABLE No. IV.8.6

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f. Promotion of Sangam products.
INFERENCE:
The table reveals that majority of the respondents opined that the promotion of
Sangam products is very high.

N=50
Options

No. of respondents

Percentage of respondents

Very high

27

54%

High

16

32%

Moderate

8%

Less

6%

Very less

2%

Total

50

100%

CHART IV.8.6

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INTERPRETATION:
The above table is apprehended that 54% of respondents agreed that the
promotions of Sangam is very high, 32% agreed as high, 8% as moderate, 6% as low and
the remaining 2% as very less response of problem.

TABLE No. IV.8.7

g. Complaints from consumers.

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INFERENCE:
The table reveals that majority of the respondents are agreed that the complaints
from customers is very less.

N=50
Options

No. of respondents

Percentage of respondents

Very high

6%

High

4%

Moderate

10%

Less

11

22%

Very less

28

56%

Total

50

100%

CHART IV.8.7

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INTERPRETATION:
The above table is apprehended that 6% of respondents agreed that the complaints
from customers is very high, 4% agreed as high, 10% as moderate, 22% as low and the
remaining 56% as very less.

TABLE No. IV.8.8

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h. Satisfaction towards distribution.
INFERENCE:
The table reveals that majority of the respondents are agreed that the satisfaction is
very high to distribution.

N=50
Options

No. of respondents

Percentage of
respondents

Very high

23

46%

High

12

24%

Moderate

18%

Less

6%

Very less

6%

Total

50

100%

CHART IV.8.8

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INTERPRETATION:
The above table is apprehended that 46% of respondents agreed that the
satisfaction of distribution is very high, 24% agreed as high, 18% as moderate, 6% as less
satisfied and the remaining 6% as very less satisfied.

FINDINGS

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1) From this study it is observed that there is a shortage of supplier to work 24

hours.

2) From this study it shows that the company is not taking effective care for
storage problem of retailers.

3) From this study it reveals that the prices are low when compared to others.

4) From this study it is opined that the dairy has very high loyal customers.

5) From this study it unveils that the margins are very low.

6) From this study it is observed that distribution channel is very high.

7) From this study it is observed that the company does not pay 100% attention
for retailers problems.

8) From this study it is observed that the margins of retailers very less when
compared to other dairies.

9) From this study it is observed that complaints from consumers less.

10) From this study it is observed that some of dealers are not satisfying.

SUGGESTIONS

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1) By employing the no. of suppliers, it will be easy to work for 24 hrs.

2) If company encourages the retailers financially for improving storage
capacities retailers can enhances its sales and make profits to the company.
3) The company should constantly concentrate to maintain the reasonable prices
simultaneously maintaining the quality to out last the rival companies in the
long - term process.
4) If the company maintains the quality it can gain more and more loyal
customers.
5) Retailers should be motivated by giving complimentaries, holiday packages, so
that they get satisfied with the company and work efficiently.
6) The retailers are anticipating co-operation from the company.
7) If the company pays complete attention regarding problems of retailers then the
volume of sales will be increase.
8) If the company will increase the margins of retailers then it leads to increase
the sales to company and profits to retailers.
9) It is suggested that if company maintain qualitative, quantitative and lower
prices to reduce consumers complaints.
10) By providing better margins and delivery of products in time then company can
reduce the dissatisfaction of dealers or retailers.

QUESTIONNAIRE

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Name

: _________________________

Address

: _________________________

1. How long you are the supplier of Sangam dairy products?

a) Less 1year

b) 2-3year

c) 4-5year

d) above 5year

2. Are you the 24 hour supplier?

a) Yes

b) No

3. How many dairy products you may sell in a day?

Milk

: ____________________________

Curd

: ____________________________

Buttermilk

: ____________________________

Lassi

: ____________________________

Doodhpeda

: ____________________________

4. With the perishable dairy products (perishable with in 24 hours) what specific
problems you will encounter.
a) ________________________________
b) ________________________________
c) ________________________________
5. To what extent the company will pay its attention to the above said problems.
a) Great extent
b) To some extent
c) Less extent
6. If your answer to the above question is b (or) c states the specific problems
which the company is not responding.
a) _______________________________

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b) _______________________________
c) _______________________________
7. In general are you satisfied with having the dealership with Sangam dairy?
a) Yes

b) No

8. Rate your answer for the following list of elements.

5=Very high; 4=High; 3=Moderate; 2=Less; 1=Very less
a) Sangam prices in comparison with other dairies.
b) Response to your problems.

(High 5 4 3 2 1 low)
(High 5 4 3 2 1 low)

c) Retailer margins in comparison with other dairies. (High 5 4 3 2 1 low)

d) Awareness among consumer.

(High 5 4 3 2 1 low)

e) Customer loyalty.

(High 5 4 3 2 1 low)

f) Promotion of Sangam products.

(High 5 4 3 2 1 low)

g) Complaints from consumers.

(High 5 4 3 2 1 low)

h) Satisfaction towards distribution.

(High 5 4 3 2 1 low)

BIBLIOGRAPHY

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AUTHOR

BOOK NAME & PUBLICATIONS

1.FRANCIS CHERUNILAN

INTERNATIONAL MARKETING
HIMALAYA PUBLICATIONS 2002

2.PHILIP KOTLER

MARKETING MNGT
11TH PEARSON EDITION

3.BARRY BERMAN

RETAIL MNGT
PEARSON

WEB SITES:

www.samgammilk.com
www.ask.com

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