CHAPTER-I

INTRODUCTION TO THE STUDY

1.1 INTRODUCTION

Packaging has become itself a sales promotion tool for the organizations. The consumers buying
behavior also stimulated by the packaging quality, color, wrapper, and other characteristics of
packaging. Packaging is a whole package that becomes an ultimate selling proposition, which
stimulates impulse buying behavior. Packaging increases sales and market share and reduces
market and promotional costs.

Brand image and advertisement have strong positive influence and significant relationship with
Consumers buying behavior. People perceive the brand image with positive attitude. Study
depicted that teenagers are more conscious about their social status so they prefer branded
products and advertisement affects on their Consumer Buying Behaviour positively.

Packaging color

Color plays an important role in a potential customers decision-making process, certain colors
set different moods and can help to draw attention.

Packaging Material

Any material used especially to protect something- packing, wadding. Consumer can change its
decision regarding Packaging material. High quality Packaging attract consumer then low quality
Packaging. So packaging material has strong impact on buying behavior.

Design of wrapper

The overall design also plays a vital role in attracting the consumer. Mostly the children of 10-
18 years are so sensitive to the design of wrapper. The companies try their best to create
attractive design of packaging.

Innovation

Innovative packaging may actually add value to the product if it meets a consumer need such as
portion control, recyclability, tamper-proofing, child-proofing, easy-open, easystore, easy-carry,
and non breakability.

1
1.2 STATEMENT OF THE PROBLEM:

The study is out to evaluate the influence of packaging on consumers buying decision in
aavin products.

2
1.3 OBJECTIVES:

o To Find Out the effect of packaging on the buying behavior decision.

o To check the effect of packaging elements on the buying behavior.

o To measure the relative impact of each packaging element on the consumer.

o To identify the packaging impact on the consumers buying decision.

o To find out the impact of the packaging elements on consumers purchasing behavior.

o To measure the role of each packaging element on the consumer.

o To identify the elements of packaging, which should be highlighted to attract consumers

3
1.4 SCOPE OF THE STUDY:

This study finds way for impact of packaging

It helps the organization to know whether they attract the consumer.

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1.6 LIMITATIONS OF THE STUDY:

Difficult to interact with consumers due to limited time period.

There may be bias in the response of the respondents.

There can be more factors leading to packaging other than the parameters identified.

5
 CHAPTER-II

INDUSTRY PROFILE

DAIRY INDUSTRY IN INDIA:

Dairy development in India has been acknowledged the world over as one of the
most successful development program. India is the second largest milk producing country with
anticipated production about 78 million tons during 1999-2000.

The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat,
Maharastra, Andhra Pradesh, Karnataka and Tamilnadu. The manufacturing of milk product is
concentrated in these milk surplus states.

Dairy sector has assumed a great significance by generating income not only to the rural but
also to the urban and semi-urban population in the state especially to the women sector folk by
providing self employment opportunity. Milk and milk products provides essential nutrition to all
walks of life. It provides the main source of income next to agriculture. In a tropical industry like
India .agriculture may fail sometimes, due to monsoon failure but dairying never fail and gives
then regular, steady income.

The state diary development department was establishment in 1958.The administrative and
stator controls over the entire milk cooperative in the state were transferred to the dairy
development was made at the functional registrar under the Tamilnadu cooperative societies act.

With the advent of Anand pattern in Tamilnadu, Tamilnadu cooperative milk producers
federation limited was registered on 1st February 1981.The commercial activities of the
department such as procurement, processing, packing and the sale of milk to the corporation
limited were transferred to the newly registered tamilnadu cooperative milk producers federation
limited.

In the wake of the liberalization policy, private diaries have entered in the field of
dairying.As per the direction of Honorable Chief Minister of Tamilnadu high priority has been

6
given for improving the performance of cooperatives.Milk producers cooperatives
societies,union and federation in the state of Tamilnadu have made significant achievement.

The dairy sector in the India has shown remarkable development in the past decade and
India has now become one of the largest producers of milk and value-added milk products in the
world. The dairy sector has developed through co-operatives in many parts of the State. During
1997-98, the State had 60 milk processing plants with an aggregate processing capacity of 5.8
million litres per day. In addition to these processing plants, 123 Government and 33 co-
operatives milk chilling centers operate in the State. With the increase in milk production
maharashtra now regularly exports milk to neighboring states. It has also initiated a free school
feeding scheme benefiting more than three million school children over 19,000 schools all over
the State.

Two fold objectives of the diary development department are:

Assure a remunerative price of the milk produced by the milk producers societies through
a stable ,steady and well market support.
Distribution of quality milk and milk products at reasonable price to the consumers.

Functions of the diary development department:

The main function of the diary development department are organization of societies,
registration of societies, supervision and control of primary milk cooperative, District
cooperative milk producers union and Tamilnadu cooperative milk producers federation.

The diary development exercise statutory functions like inquiry, inspection, surcharge and
super session, appointment of special officers, liquidation and winding up of dormant societies
etc...The commissioner for milk production and diary development, Deputy Milk commissioner
and circle deputy registrars are vested with quasi- judicial power in respect of settlement of
dispute, appeal, revision and review under various provisions of Tamilnadu co-operative socities
act 1983 and rules made there.

STRUCTURE OF THE INDUSTRY

7
 Most of the countries produce their own milk products, the structure of the dairy industry
varies in different parts of the world. In major milk-producing countries most milk is distributed
through wholesale markets. In Ireland and Australia, for example, farmers' co-operatives own
many of the large-scale processors, while in the United States many farmers and processors do
business through individual contracts. The United States, the country's 196 farmers' cooperatives
sold 86% of milk in the U.S. in 2002.

This was down from 2,300 cooperatives in the year 1940s. In developing countries, the
past practice of farmers marketing milk in their own neighborhoods is changing rapidly. Notable
developments include considerable foreign investment in the dairy industry and a growing role
for dairy cooperatives. Output of milk is growing rapidly in such countries and presents a major
source of income growth for many farmers.

As in many other branches of the food industry, dairy processing in the major dairy
producing countries has become increasingly concentrated, with fewer but larger and more
efficient plants operated by fewer workers. This is notably the case in the United States, Europe,
Australia and New Zealand. In 2009, charges of antitrust violations have been made against
major dairy industry players in the United States.

Government intervention in milk markets was common in the 20th century. A limited
anti-trust exemption was created for U.S. dairy cooperatives by the Capper Volstead Act of 1922.
In the 1930s, some U.S. states adopted price controls, and Federal Milk Marketing.

Plants producing liquid milk and products with short shelf life, such as yogurts, creams
and soft cheeses, tend to be located on the outskirts of urban centres close to consumer markets.
Plants manufacturing items with longer shelf life, such as butter, milk powders, cheese and whey
powders, tend to be situated in rural areas closer to the milk supply. Most large processing plants
tend to specialise in a limited range of products. Exceptionally, however, large plants producing a
wide range of products are still common in Eastern Europe, a holdover from the former
centralized, supply-driven concept of the market.

As processing plants grow fewer and larger, they tend to acquire bigger, more automated
and more efficient equipment. While this technological tendency keeps manufacturing costs
lower, the need for long-distance transportation often increases the environmental impact.

8
 Milk production is irregular, depending on cow biology. Producers must adjust the mix of
milk which is sold in liquid form vs. processed foods (such as butter and cheese) depending on
changing supply and demand.

INDIA: WORLDS LARGEST MILK PRODUCER

India has become the world's No. 1 milk producing country, with output of 78 million
tonnes in 1999-2000.

United States, where the milk production is anticipated to grow only marginally at 71
million tonnes, occupied the top slot till 1997. In the year 1997, India's milk production was on
par with the U.S. at 71 million tonnes. The world milk production in 1998 at 557 million tonnes.
The annual rate of growth in milk production in India is between 5-6 per cent, against the world's
at 1 percent. The steep rise in the growth pattern has been attributed to a sustained expansion in
domestic demand, although per capita consumption is modest - at 70 kg of milk equivalent.

MILK PRODUCTION

About 95% of world buffalo milk (45.3 million tonnes) is produced in Asia & Pacific,
while 64.4% is produced in India (FAO.1992) From 1950 to 1992 milk production in the world
increased by 4.26% The % of total bovines slaughtered, Total bovine slaughtered (%) World
17.1 to 17.4% or - 1.6% per annum India 15% per annum Asia 6.6% Increasing trend of buffalo
population in most of the Asian countries in Brazil and Italy Buffaloes found in the north
eastern states and the eastern coastal region of India & in China South east Asian countries e.g.
Philippines, Thailand, Malaysia, Vietnam, Srilanka, Burma, Laos, Kampuchea, Bangladesh etc.
have been classified as swamp buffaloes on the basis of their genetic constitution (2n=48) &
natural habitat.The breeds includes in these groups are Manda & Palakhemundi.

BUFFALO MILK Vs COW MILK

No difference in nutritive value

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 There is practically no difference in the nutritive value and digestibility of milk and milk
products obtained from cow and buffalo milks.

Lower cholesterol content

Significantly, cholesterol content of buffalo milk is 0.65 mg/g as compared to the

corresponding value of 3.14 mg/g for cow milk.

More proteins

Animal bioassays have shown the Protein Efficiency Ratio (PER) value of buffalo milk
proteins to be 2.74 and that of cow milk as 2.49. It will be seen that buffalo milk has about 11.42
per cent higher protein than cow milk.

More important minerals

Buffalo milk is also superior to cow milk in terms of important minerals, namely calcium,
iron and phosphorus which are higher by 92 per cent, 37.7 per cent and 118 per cent
respectively than those present in cow milk.

More vitamin A

Buffalo metabolizes all the carotein into vitamin A, which is passed on to milk as such.

OPERATION OF THE DAIRY FARM

When it became necessary to milk larger numbers of cows, the cows would be brought to
a shed or barn that was set up with bails(stalls) where the cows could be confined while they
were milked. One person could milk more cows this way, as many as 20 for a skilled worker. But
having cows standing about in the yard and shed waiting to be milked is not good for the cow, as
she needs as much time in the paddock grazing as is possible. It is usual to restrict the twice-
daily milking to a maximum of an hour and a half each time. It makes no difference whether one
milks 10 or 1000 cows, the milking time should not exceed a total of about three hours each day
for any cow.

As herd sizes increased there was more need to have efficient milking machines, sheds,
milk-storage facilities (vats), bulk-milk transport and shed cleaning capabilities and the means of
getting cows from paddock to shed and back.

10
 Farmers found that cows would abandon their grazing area and walk towards the milking
area when the time came for milking. This is not surprising as, in the flush of the milking season,
cows presumably get very uncomfortable with udders engorged with milk, and the place of relief
for them is the milking shed.

As herd numbers increased so did the problems of animal health. In New Zealand two
approaches to this problem have been used. The first was improved veterinary medicines (and
the government regulation of the medicines) that the farmer could use. The other was the
creation of veterinary clubs where groups of farmers would employ a veterinarian (vet) full-time
and share those services throughout the year. It was in the vet's interest to keep the animals
healthy and reduce the number of calls from farmers, rather than to ensure that the farmer needed
to call for service and pay regularly.

Most dairy farmers milk their cows with absolute regularity at a minimum of twice a day,
with some high-producing herds milking up to four times a day to lessen the weight of large
volumes of milk in the udder of the cow. This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk. Some small herds are milked once a day for about the
last 20 days of the production cycle but this is not usual for large herds. If a cow is left unmilked
just once she is likely to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no production. However,
once-a-day milking is now being practised more widely in New Zealand for profit and lifestyle
reasons. This is effective because the fall in milk yield is at least partially offset by labour and
cost savings from milking once per day. This compares to some intensive farm systems in
the United states that milk three or more times per day due to higher milk yields per cow and
lower marginal labor costs.

Farmers who are contracted to supply liquid milk for human consumption often have to
manage their herd so that the contracted number of cows are in milk the year round, or the
required minimum milk output is maintained. This is done by mating cows outside their natural
mating time so that the period when each cow in the herd is giving maximum production is in
rotation throughout the year.

11
 Northern hemisphere farmers who keep cows in barns almost all the year usually manage
their herds to give continuous production of milk so that they get paid all year round. In the
southern hemisphere the cooperative dairying systems allow for two months on no productivity
because their systems are designed to take advantage of maximum grass and milk production in
the spring and because the milk processing plants pay bonuses in the dry (winter) season to carry
the farmers through the mid-winter break from milking. It also means that cows have a rest from
milk production when they are most heavily pregnant. Some year-round milk farms are penalised
financially for over-production at any time in the year by being unable to sell their
overproduction at current prices.

CHAPTER-III

COMPANY PROFILE

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ABOUT THE COMPANY:

The Erode district cooperative milk producers union limited is a replica of the district
milk union in Gujarat state based on the AMUL SYSTEM. The Erode milk union is therefore
sandwiched in the middle of the 3-tier system popularly known as ANAND orAMUL
pattern consisting of an apex state level federation at Chennai, the union at the district level and
the primary cooperative societies at the village level.

The national diary development board,ANAND through the government of

tamilnadu and the Tamilnadu cooperative milk producers federation, has been funded the entire
project. The project has been funded under the national operation flood programmed with an aim
to bring about a socioeconomic awakening in rural India.

The district union has 728 primary milk co-operative as its base and the Tamilnadu co-
operative milk producers federation as its apex body.

Erode district co-operative milk producers union Ltd, (EDCMPUL) is a milk and milk
products organization at Erode. It was established in 1975 and it functions from 01.07.1976. It is
one of the leading co-operative milk producers union in India. It is situated at nearby Sri Vasavi
college in erode total area of dairy is 65 acres and NDDB training center occupies 10 acres in
this.

The erode union is collecting milk of 233000 liters per day from 975 milk societies
spread over erode district through 97 milk routes out of the total collection of milk 90000 liters
send Chennai and 9000 liters send to Kerala per day. 100000 liters of milk are sending to Delhi
twice in a weak. The balance 84000 liters are used for products development.

The EDCMPU has two functioning areas. One is the feeder balancing dairy (FBD)
which was formally inaugurated in 10th November 1981. The FDB is located on the main
campus. The other one is for manufacturing the cattle feed and the plant is located at Erode.

The first co-operative dairy was set up at Chennai city during the year 1927. The state
Dairy development was established in 1958.

13
 The first modern dairy plant with a capacity to handle 50000 liters per day of pasteurized
milk was established in the year 1963 at Madhavaram near Chennai with the aid from
newzealand. A dairy to handle 50000 liters of milk per day was set up at Madurai with the
assistance of UNICEF in 1967.

The state department for dairying started milk procurement through organized village co-
operatives in the year 1962. The system consisted of supervised milking at the village level and
through hired transports vehicles to milk chilling planter directly to the dairy. The farmers were
paid on volume basis for the milk purchased with different price structure for cow milk and
buffalo.

The societies advanced loans to the farmers for purchase of milk animals. Unlearn the
five-year plan of the state government a number of pasteurization plants were set up in the co-
operative sector in major towns. The milk procurement during 1972 was around 0.60 LLPD
against the present procurement of 15.56 LLPD.

EMPLOYEE DETAILS:

Number of employees working: 470

Number of female employees working: 70
Total number of employees: 540

AVERAGE MILK PER DAY 2015-2016

STD milk : 6796lit
Full cream milk : 9595lit
Buffalo milk : 3645lit
Average Transport cost per lit : 0.39p
Product sales in the District : Butter, Ghee, Skimmed
Milk powder, curd, Ice-cream, flavoured milk, Dates of koha, Badam mix powder.

OBJECTIVES OF THE COMPANY:

To purchase, manufacture, distribute and sell milk products.

To purchase, manufacture, distribute and sell cattle feed to member societies.
To encourage the growing of green fodder by member of affiliated societies.

14
 To provide machines, veterinary and artificial insemination services and undertake
breeding programs for the development if milk animals.
To organize new primary milk producers cooperatives societies and assist them by
providing technical, financial, administrative and other facilities.
To propagate the spirit of cooperation among its members.
To provide fresh, good and tasty milk and milk products to the public to the public to
keep up their health.

FEATURES OF AAVIN:

The company has ISO 9001-2000 certified and ISI certified for the skimmed milk powder
production and the erode dairy ghee is sold with AGMARK certificate.
National wide database laboratory established at erode dairy out of 15 milk producers
union selected by national development board in India.
Average 13000 liters of pure milk is supplied for Chennai metro sales from erode dairy.
The union spends 154.42 lakhs, 167.2 lakhs, 187.74 lakhs and 219.28 lakhs of marketing
for past five years, which includes transport and agents commissions.

FUNCTIONS OF DISTRICT COOPERATIVE MILK PRODUCER UNION:

Establishment of chilling centers.

Formation of new milk routes to collect the milk produced by the member societies.
Collection of milk from societies, process and pack in modern dairy plant by maintaining
quality standard.
Fixation of procurement and selling price of milk.
Increase of milk sales by introducing innovative sales promotion activities. Supply of
inputs to the member societies obtained from unions.
Erode union is acting as the feeder balancing dairy.

QUALITY POLICY:
Erode Aavin is committed to provide hygienically produced milk and products by
continual improvement of products and services to the utmost satisfaction of customers.

QUALITY OBJECTIVES:
To adopt hygienic production of milk and milk products.
To improve the customers satisfaction.

15
 To enhance the competency of employees by training and development.
Continual improvement of quality of products and services.

ORGANIZATION CHART

GENERAL MANAGER

DEPUTY GM DEPUTY GM DEPUTY GM DEPUTY GM DEPUTY GM

(PROCUREMENT& (ADMINISTRATION)
(PRODUCTION) (FINANCE) (CATTLE FEED)
INPUT)

ASST GM (F & F) ASSISTANT GM

16 (INDUSTRIAL RELATION)
DEPUTY
DAIRY MANAGER
MANAGER OFFICE
STENOASSISTANT
TYPIST
HELPER MANAGER
EXECUTIVE (OFFICE)
(ENGG)
HISTORY AT A GLANCE:

Date of registration : 07.02.1975

Date of functioning : 01.07.1976

Share capital : 63 lakhs

Area of operation : Erode district

Functional units : Feeder balancing dairy, Chittode. Cattle food plant, Erode.

Chilling unit : Sankaradampalayam, Sathyamangalam, Thalavady.

FEEDER BALANCING DAIRY:

17
 OUTLAY

Operational Flood I - Rs. 328.86 lakhs

Operational Flood II - Rs. 221.15 lakhs

Operational Flood III - Rs. 696.63 lakhs

Commencement of production - 01.03.1981

CAPACITY

Liquid milk processing - 3.0 lakhs liters per day

Powder production - 10/30 MT per day

Butter production - 12 MT per day

Ghee production - 12 MT per day

Automatic Ghee filling - 5 MT per day

SATHYAMANGALAM CHILLING CENTRE:

Outlay : Rs. 24.8 lakhs

Capacity : 30,000 liter/day

No. of milk routes : 6

Commencement of production : 11.08.1983

Total area : 8.5 acres

THALAVADY CHILLING CENTRE:

Outlay : Rs. 10 lakhs

Capacity : 5,000 liter/day

No. of milk routes : 2

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Commencement of production : 29.12.1989

Total area : 5 acres

CATTLE FEED PLANT:

Outlay : Rs. 78.84 lakhs

Capacity : 100 tons/day

Commencement of production : 1.11.1980

Total area : 10 acres

SANKARANDAMPALAYAM:

Outlay : Rs. 82.25 lakhs

Capacity : 50,000 liter/day

No. of milk routes : 8

Commencement of production : 1.5.1982

Total area : 9.2 acres

MILK RECEPTION
Cow and buffalo are normally milked twice days once early in the morning and the late in
the afternoon. Milk being a perishable commodity should be delivered as soon as possible to the
collection of counters chilling centres of dairy for further handling and processing. At collection
centres this milk is transferred to dairy plant.

There are two receptions in the reception block to collect the cow milk and buffalo milk
from various societies in and around Erode District. There are nearly 786 Societies maintained
through 23 routes. Reception procedure should be simple, quick and absolutely trouble free. Milk
reception at a dairy plant requires almost attention. Perfect cleaning of cans, road or rail milk
transfer, proper grading and accurate measurement of milk are very important. Cow milk
received per day 1.6 lakh liters & Buffalo milk received per day 0.5 lakh litres.

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MILK RECEPTION IN CANS
Most of the dairy plants receive milk in cans. Milk reception procedure and equipments
involved are described in these sections.

EQUIPMENT
The following equipment is used in the milk reception sections.

CHAIN CONVEYORS
Chain conveyors are used separately for incoming cans sour milk cans and outgoing cans.

WEIGHING BALANCE
Weighing balance is usually of 500kg capacity. It is provided with a dump. After
weighing each lot of milk it is transferred to dump tank with help of a hand operated value.

CAN WASHER
Two types of can washer are available. Rotary can washes and straight through can
washer. Rotary washers are generally used in smaller plants. It has an advantage that it occupies
less apace and can be operated easily by one person only. But it has great disadvantages that it is
difficult to avoid recontamination either by washer or by operator. In both types of washers, cans
are passed through the same sequence of operations.

MILK CHILLING
Raw milk from dump tank is chilled by using two plate chillers, one for cow milk and
other for buffalo milk. Milk entering the chillier is cooled to about 5 0c by using chilled water
0.50C chilled milk is then stored in three raw milk silos, of each of 15,000 liters capacity.

KHOA
Khoa is a milk sweet prepared by concentrating milk solids by rapid boiling sugar is
added to the concentrated milk thus khoa is prepared. The fat content and solid non fat content of
the above types are given below.

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BUTTER
Butter is a main by product of the dairy industry. It is fatty substance. Sometime common
salt is added in this. Carotene or annatto may be acted as a collaring agent. Diabetic can be used
as flavouring substance at concentration of 4ppm.

GHEE
Ghee is also a rich fatty substance. Butter freed from moisture and curd after melting
forms ghee. Ghee contains less than 3% fatty acid and moisture content less than 1.5%

SKIMMED MILK POWDER

Skimmed milk powder is the powdered from skimmed milk produced by the removal of
water from the latter. Skimmed milk powder should not contain more than 1.5%. The standard
lactic acidity is 1.5%.

POWDER PLANT
The power plant having the capacity of 30 MT. the raw milk contains 80% of water to
evaporate the water content; the plant is having five steps. Finally the milk is send back to
atomizes through pipelines.

The atomizer is a cone like structure. Here the atomizer motor is running at speed of
7200rpm. Hot air is passed through the nozzle opening to split the milk. The atomizers hot air is
split touches in to power and reaches down. The weightless particle in the atomizer is fed
through the separate arrangement. The powder gained is hot in nature which is cooled through
water jacket. The powder is again sending to packing and packet.

Powder packing is done in 25kg pack (food grade LDPE linear on bag, HDPE one
sandwich laminated with craft paper). The bags are stitched and stacked in the go down in batch
wise and lot wise 80 as to access the actuarial date of production. The powder thus produced will
hand a shell life of 12 months for 8Mp and 6 months for whole milk powder.

PREPACK SECTION

21
 Milk for processed milk silos are pumped to a horizontal milk silo through plate chillier
before packing. From this silo milk enters the packing section. There are five packing section
with two filling heads each. Approximately 50000lts of milk is packed daily

RAW MILKS STORAGE.

Milk after chilling in stored in silos from where it in taken for processing. There are 4
raw milk silos: 3 of capacity 15000L kept in processing hall and one of capacity 30000L kept in
RMRD and the latter in used when milk in surplus. Cow milk and buffalo milk is stored
separately.

QUALITY CONTROL
Reception is located in RMRD and the main tests being done there is testing of society
samples for fat, SNF (Lactometer reading) temperature, acidity and MBRT. Tanker samples are
also tested for the above tests. Samples like milk during separation. Pasteurized packing, raw
milk silo samples, etc are also tested for fat, SNF acidity, phosphates tests, MBRT etc.

WATER TREATMENT PLANT

Around 8 lakhs of water is required dairy. Pumping from Cauvery is the way to meet the
water requirement Pumping stations situated in the bank of Cauvery. Water from Cauvery is
pumped to the treatment plant at 65.000L. Water per hour and for that a stationary fee of Rs.500/-
day is paid of the government. Track rent of Rs.2900/- year is also paid Punning is controlled
automatically with an interval of 4hrs. The residual chlorine is maintained at level of max 0.1
ppm water then flows into the water sump of 1,50,000 L capacity from which it is pumped to the
dairy over head tanks of same capacity..

PURCHASE SECTION
The section handles all the purchase activities of the dairy purchase of commodities is done
by
Annual tenders
Quotations

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 Tenders are invited from manufactures, authorized dealers/ trader for supply of items like
purchasing materials, consumables, miscellaneous items on one year contract basis. The tender
notice will be published in newspaper and it contains the details of type and specification of the
material, tender from submission date etc. Tender form will be received which contains technical
and commercial bid. Technical bid contains earnest money deposit (EMD) and sample of the
material.
The sample will be tested in the quality control lab to check whether it meets the
specification. Commercial bid of technically qualified samples will be opened and one with the
lowest contract prices will be accepted for the year.
The purchase of spare parts of the machines, vehicles etc is carried by calling quotations on
and when the item is required. Enquiry will be sending for manufactures/ dealers/ agents
requesting to submit the quotations. Quotation will be opened in the presence of purchase
standing committee members. Among this order will be placed to the lowest offers only.
Purchasing of printing and stationary one made through co operative society.

TRANSPORT SECTION
Fluid milk transportation to dairy is handled by this section. It also provides others
vehicles for official purpose facilities petrol, pumps and workshop. The section provides
information regarding average transportation cost of milk, cost per km etc. Dairy had around 5
milk tankers, 3 jeeps; IPUF is insulated butter vehicle (9 Ton) and 3 cars under the section. Milk
in cans from various societies is brought to the plant by vehicles on contract basic by calling
tender. There are around 15 milk tankers on contract basic for milk transportation to long
distance like Chennai.

ELECTRICAL SECTION
One of the major services required in a dairy has electricity. In this plant this requirement
is met by means or 3 transformers and 2 generators. In the transformer unit there are transformer
one indoor type and the other two outdoor types.
The capacity of each transformer is 500 KOVA. The requirement of electrical part
consumption days of the dairy is around 5000 units and the rate is Rs.6/- per unit.95% of the
electricity break will be not be there in the plant and to meet the rest 5% possibility to generators

23
of 200 KOVA each is used. Capacity of engine for each generator is 255 HP. The deseed
consumption for running the generator is 40l/HR.

GENERAL STORES
General Stores are the store house for many materials it serves the following section- P&I Lab
water treatment transportation dairy office engineering powder etc. By providing material like
packing materiel food product non dairy ingredients stationery mechanical & Electrical spare
parts oil type chemicals etc. Store ledger is maintained which give details regarding the purchase
quality rate of material required etc. and send to purchase section.

FINANCE AND ACCOUNT SECTION

Finance planning formulation of working capital management, negotiation and financial
institutions, day to day management of funds preparation of P&L a/c balance sheet are too king
after by the finance and accounts section. The records maintained are cash book Purchase book
purchase return book; sales book sales return book, etc.

REHIBILITATION PLAN
Rehabilitation plan period from 01-04-2002 to 31-03-2009
Total estimate cost (Rs.In lakhs): 900
State Govt Share (Rs. In lakhs):450
Central Govt.share (Rs. In lakhs):450
CHAPTER IV

RESEARCH METHODOLOGY

Research Methodology

Research methodology is the process used to collect information and data for the purpose
of making decision and solve the problems.

The study of research methodology helps to develop the training in gathering the
materials and arranging them. Participation in the field works and also provides the training in
techniques for collecting the data according to the problem.

24
RESEARCH DESIGN

The validity of any research is based on the systematic method of data collection and
analysis. Both primary and secondary data were used for the present study. The primary data
were collected from various respondents in the study area. For collecting the first-hand
information, respondents were chosen by convenient sampling method (i.e.10% from the total
population). The researcher approached the respondents located at in and around Erode district .
In this study researcher has used descriptive research design.

DATA COLLECTION
Primary Data

The primary data thus collected from the primary sources of information were arranged
systematically and logically and were tabulated under necessary heads for the study of various
aspects and evaluation. The specimen of the questionnaires given to the selected sample
respondents is given in the Appendices section of the report.

Secondary Data

Secondary data were also collected for this study from leading journals, magazines and
websites relating to diary industry.

TOOLS FOR DATA COLLECTION & ANALYSIS

By virtue of the mass data obtained from research survey, as well as data from primary
and secondary sources were collected, descriptive research was considered the most appropriate
for this study. The research problems and questionnaire were all framed accordingly. The
suggestions offered in the final chapter of the present research report emerged from the
inferences drawn from the study of the sample respondents information thus analyzed by using
Percentage analysis and Chi Square test. Questionnaire was the main tool used to collect the
data from the selected sample respondents. For this purpose, a well structured questionnaire was
framed with the help of the Supervisor. The questionnaire so drafted was circulated among the

25
experts and research scholars for their critical views with regard to its working and its format,
sequence and the like. The questionnaire was modified in the light of their comments.

SAMPLE SIZE

The sample size used for study of impact of packaging on

consumer buying in erode town is 200- sample size.

SAMPLE METHOD

The researcher selected the sample from the population by applying

random sampling method.

ANALYSIS

Analysis is the process of placing the data in an ordered form, combining them with the
existing information and extracting the meaning from them. In other words, analysis is an answer
to the question what message is conveyed by each group of data which are otherwise raw facts
and are unable to give a meaningful information. The raw data become information only when
they are analyzed and put in a meaningful form.

INTERPRETATION

Interpretation is the process of relating various bits of information to other existing

information. Interpretation attempts to answer, What relationship exists between the findings to
the research objectives and hypothesis framed for the study in the beginning.

Tools for Analysis

For this research the following tools were used:

26
 Simple Percentage Analysis
Ranking Method
Chi-square Test

Simple Percentage

Percentage refers to a special kind of ratio percentages are used in making

comparison between two are more series of data. Percentages are used to describe

relationship since the percentage reduces everything to a common base and there by

allows meaningful comparisons to be made.

No. of. Respondents

Percentage analysis = ---------------------------------------- X 100

Total No.of.Respondents

Ranking Method

Ranking or comparative method we make relative judgments against other similar

objects. The respondents under this method directly compared two or more objects and

make choices among them

Chi-square ( 2) Test

27
 Chi-square analysis has been used to test the hypothesis regarding consumer

satisfactions in preferring particular courier service. Chi-square, a non-parametric test, is

symbolically written as 2.

(O E ) 2
2 = E

Where as

O - Observed Frequencies

E - Expected Frequencies

CHAPTER-V

DATA ANALYSIS AND INTERPRETATION

TABLE NO. 1

AGE LIMIT

Age limit RESPONDENTS Percentage

28
15-20 year 52 26

21-25 year 60 30

26-30 year 48 24

31 above 40 20

Total 200 100

INFERENCE:

From the above table it is inferred that, 30% of the respondents are 20 to 25 years old.
26% of the respondents are 15 to 20 years old. 24% of the respondents are 25-30 years old. And
only 20% of the respondents are having above 30 years.

CHART NO.1

AGE LIMIT

29
 TABLE NO.2

GENDER

Gender Respondents Percentage

30
Male 118 59

Female 82 41

Total 200 100

INFERENCE:

From the above table it is inferred that,59% of the respondents are male. And 41% of the
respondents are female.

CHART NO.2

GENDER

31
TABLE NO.3

OCCUPATION

32
 Occupation Respondents Percentage

Student 85 43

Employed 60 30

Salaried 55 28

Total 200 100

INFERENCE:

From the above table it is inferred that, 43% of the respondents are students. 30% of the
respondents are employed persons. And only 28% of the respondents are salaried people.

CHART NO.3

33
OCCUPATION

TABLE NO.4

FAMILY INCOME LEVEL

34
Family Income
(p/month) Respondents Percentage

5000-10000 75 38

10001-20000 65 33

20001-30000 40 20

35000 above 20 10

Total 200 100

INFERENCE:

From the above table it is inferred that, 38% of the respondents family income is Rs.5000
to 10000 per month. 33% of the respondents earnings are Rs.10001 - 20000. 20% of the
respondents earnings are Rs.20001 to 30000. And only 10% of the respondents earnings are Rs
35000 and above.

35
 CHART NO.4

FAMILY INCOME LEVE

TABLE NO.5

36
 PACKAGING OF AAVIN PRODUCT

Packaging Respondents Percentage

Yes (like) 124 62

No (unlike) 76 38

Total 200 100

INFERENCE:

From the above table it is inferred that, 62% of the respondents are like the aavin
packaging and only 38% of the respondents are not like aavin products.

37
 CHART NO.5

RESPINDENTS LIKENESS ON THE PACKAGING OF ANY AAVIN PRODUCT

38
 TABLE NO.6

ATTRACTIVENESS

Attractiveness Consumer Percentage

strongly attractive 55 28

Attractive 100 50

Not attractive 45 23

Total 200 100

INFERENCE:

From the above table it is inferred that, 50% of the respondents are very much attracted
towards aavin packaging. 28% of the respondents are strongly attracted. And only 23% of the
respondents not attracted by the packaging.

CHART NO.6

39
ATTRACTIVENESS

40
 TABLE NO.7

RECOMMEDATIONS

Recommendations Customer Percentage

yes 120 60

no 80 40

Total 200 100

INFERENCE:

From the above table it is inferred that, 60% of the respondents are recommended the
aavin products and only 40% of the respondents are not recommended the aavin products.

41
 CHART NO.7

RECOMMEDATIONS

TABLE NO.8

42
 AWARENESS

Awarness Through Consumer Percentage

Advertisement 80 40
Friends / Relatives 30 15
Media 70 35
Others 20 10
Total 200 100

INFERENCE:

From the above table it is inferred that, 40% of the respondents are aware about the aavin
products towards advertisement. 35% of the respondents are through media. 15% of the
respondents are through friends and relatives and only 10% of the respondents are through other
media.

43
CHARTNO.8

AWARENESS

TABLE NO.9
44
 IMPRESSION ON AAVIN PRODUCTS

Aavin Products Consumer Percentage

Milk 100 50

Milk Kova 20 10

Ghee 30 15

Milk Power 35 18

Other 15 8

Total 200 100

INFERENCE:

From the above table it is inferred that, 50% of the respondents are impressed on aavin
milk. 18% of the respondents are by milk powder. 15% of the respondents are aavin ghee, 10%
of the respondents are impressed by aavin milk khova And only 8% of the respondents are
impressed by aavins other product.

45
 CHART NO.9

IMPRESSION ON AAVIN PRODUCTS

46
 TABLE NO.10

RECOMMENDATIONS ON PURCHASE OF AAVIN PRODUCTS

FACTOR Consumer Percentage

yes 120 60

no 80 40

Total 200 100

INFERENCE:

From the above table it is inferred that, 60% of the respondents are recommended to
purchase the aavin products and others 40% of the respondents are not recommended others to
purchase the aavin products .

CHART NO.10

47
RECOMMENDATIONS ON PURCHASE OF AAVIN PRODUCTS

TABLE NO.11

RATING LEVEL

48
 FACTORS S.D D N A S.A N/of
customer
Leading 10 35 80 55 20
brand
products are
always
better 200
Selection 12 40 70 54 24
according to
life style 200
Like the 8 20 100 60 12
color of
packaging 200
Attractions 15 25 100 55 5
of beautiful
backgrounds 200
Quality of 5 15 105 50 25
packaging
save product
better 200
Sub Total
AVG
50 135 455 274 86 200
Percentage

5 14 46 27 9 100

INFERENCE:

From the above table it is inferred that, 46% of the respondents are said normal in their
rating level of any aavin products, 27% of the respondents are agreed, 14% of the respondents
are disagreed, 9% of the respondents are strongly agreed and only 5% of the respondents are
strongly disagreed of aavin products.

49
 CHART NO.11

RATING LEVEL

TABLE NO.12

SATISFACTION LEVEL

50
 Particular H.S S N D.S H.D.S
num of customer
Quality of 20 30 80 50 20
Product
200
Cost of Product 30 48 95 20 7
200
Font Style 12 30 60 60 38
200
Condition of 20 35 90 38 17
Delivery
200
Communication 15 40 90 40 15
with the Top
Level
Management 200
Total customer
respondents 97 183 415 208 97 Total percentage
Avg percentage

10 18 42 21 10 100

INFERENCE:

From the above table it is inferred that, 42% of the respondents are said normal in their
rating level of any aavin products, 21% of the respondents are dissatisfied, 18% of the
respondents are said satisfied and 10% of the respondents are said both highly satisfied and
dissatisfied of aavin products.

CHART NO.12

RESPONDENTS SATISFACTION LEVEL

51
 TABLE NO.13

EXPECTATIONS ON AAVIN PRODUCTS

52
Packing information Consumers Percentage

Beneficial 100 50%

Up to some extent 60 30%

Not beneficial 40 20%

Total 200 100%

INFERENCE:

From the above table it is inferred that, 50% of the respondents are get beneficial of any
aavin products, 30% of the respondents are benefited upto some extent, and 20% of the
respondents are not benefited of aavin products.

CHART NO.13

EXPECTATIONS ON AAVIN PRODUCTS

53
 TABLE NO.14

Awareness about information given on food packet

54
Are you aware about
information given on food
packet Consumer Percentage
Yes 140 70
No 60 30
Total 200 100

INFERENCE:

From the above table it is inferred that, 70% of the respondents are having awareness
about the information given on food packet and 30% of the respondents are not having
awareness about the information given on Aavin products.

CHART NO.14

55
Awareness about information given on food packet

TABLE NO.15

56
 AGREE LEVEL ON AAVIN PRODUCTS

Particular S.D D N A S.A Total number of

Consumers
Wrapper design is 20 55 70 30 25
important for
packaging 200
Wrapper design 12 50 80 55 3
inspire you in
purchase
200
Do you read the 5 30 60 70 35
printed
information on the
package
200
Innovation is 30 50 70 30 20
important in
packaging
200
Preference of 10 35 75 50 30
better handling
and transportation

200
Total customer
respondents
77 220 355 235 113 Total percentage
Average
percentage
8 22 36 24 11 100

57
 CHART NO.15

AGREE LEVEL ON AAVIN PRODUCTS

WEIGHTED AVERAGE

TABLE-4.2.1

58
 Ranking the facilities provided by the concern

Ranks 1 5 4 3 2

Weight 8.28 2.48 5.62 5.98 7.66

WEIGHTED AVERAGE FORMULA

Wrapper Quality of the Cost of the Packagin

Ranks Innovation
Design product Product g

1 102 0 12 18 68

2 50 4 44 44 58

3 26 6 52 68 48

4 18 24 78 58 24

5 4 166 14 12 2

Total 200 200 200 200 200

59
SAMPLE CALCULATION

Weighted Average for support from superiors

Average Score=

(102*5) + (50*4) + (26*3) + (18*2) + (4*1)

_______________________________________

200

=8.28

60
 CHI-SQUARE TEST

Testing of Hypothesis

Null Hypothesis (Ho): There is no significant difference, between the respondents impressions
on aavin products and the satisfactory level.

Alternative Hypothesis (H1):- There is a significant difference, between the immpression and
the satisfactory level.

TABLE-4.3.1

Aavin product Impression Vs satisfactory level

Aavin Respondents level of satisfaction

Total
Products H.S S N D.S H.D.S

Milk 0 18 0 0 0
18
Milk khova 20 0 12 0 0 32

Ghee 6 4 0 2 0 12

Milk
24 18 4 0 0
Powder 46

Others 22 32 10 12 16 92

Total 72 26 14 16 200
72

61
 TABLE-4.3.1

Aavin product Impression Vs satisfactory level

(CHI-SQUARE TEST)

Calculated Degree of Table value @5%

Factor Remarks
Value Freedom Level

Significant
Experience 53.065 5% 15.336
difference

It is found from the above analysis that calculated chi-square value is greater than the
table value at 5% degree of freedom. So it has been conclude that there is significant difference
between impression on aavin products and respondents level of satisfaction.

62
 CHAPTER-VII

SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION

5.1 FINDINGS

30% of the respondents who consuming aavin products are 20 to 25 years old.
Maximum 59% of the respondents are male
43% of the respondents who consuming aavin products are students.
38% of the respondents family income is rs.5000 to 10000 per month.
Majority 62% of the respondents are said yes i.e they like the packaging of any aavin

products
50% of the respondents are very much attracted towards aavin packaging.
40% of the respondents are aware about aavin products towards advertisement.
50% of the respondents are impressed on aavin milk and 18% of the respondents are by

milk powder.
60% of the respondents are said yes by recommending of any aavin products
Majority 46% of the respondents are said normal in their rating level of any aavin

products,
Maximum 42% of the respondents are said normal in their rating level of any aavin

products.
50% of the respondents are get beneficial of any aavin products
70% of the respondents are said yes by aware about information given on of any aavin

products

5.2 SUGGESTION

Packaging could be treated as one of the most valuable tool in todays marketing
communications, necessitating more detail analysis of its elements and an impact of those
elements on consumers buying behavior.

1.After the findings of the research it is highly recommended to all to focus on the

63
good and attractive packagings which introduce any new product in the market.

2. It is recommended that marketers do not think that packaging is the least factor in the success
of any product. They should kept in mind that the packaging is the first most tool for attracting
the consumers and built a perception in their minds, so it should be deeply focused.

3. It is recommended to other researchers that when they are taking packaging as a research topic
they should also focused on the other marketing factors and dimensions as well.

4. For the researchers who are going to conduct research in future should focus the other
elements of researches as well

CONCLUSION

Thus, we find that packaging could be treated as one of the valuable marketing weapons with
respect to making proper communication between an organisation and its consumers. The study
makes it clear that the overall perception of the consumers about the different elements of
packaging of aavin Dairys products is satisfactory. Aright choice of packaging color,
background image, wrapper design, innovative ideas when imparted to a products packaging
will create a happy feeling in consumers mind. All these packaging elements contribute an
important effort to catch consumers attention and interest. As far as the association between

64
dairy product packaging and impact on consumers buying behavior is concerned, it is clear that
visual appeal is more important than the qualitative aspect of packaging. This simplied from the
significant association between packaging colour, background image, wrapper design and
innovation in packaging and the higher positive correlation among these elements of packaging
with consumers buying behaviour, whereas no significant association was observed between
consumers buying behaviour and quality of materials used in packaging, information printed on
packaging etc. and very weak or no correlation among them. The present study also indicates the
lacuna of aavin Dairy in terms of packaging its products. However, there are certain areas such as
typographic factor in packaging, colour used in packaging, background image where aavin Dairy
should give more attention to improve and thereby try to retain the existing consumers and
attract new consumers

BIBLIOGRAPHY
TEXT BOOKS

Sanjeev Kumar Singh - Human Resource Development, Atlantic publishers and dist
October 2001 first review edition.

C.R. Kothari-Research Methodology methods and techniques, New age international

publication second revised edition 1996.

65
 Fisher, Schoenfeldt & Shaw-Human Resource Management, New India Publishing
fifth revised edition.

JOURNALS

[1]. Rundh, B., 2005. The multi-faceted dimension of packaging. British Food Journal, 107 (9), 670-684.

[2]. Underwood, R. L., 2003. The communicative power of product packaging: creating brand identity via
lived and mediated experience. Journal of Marketing Theory and Practice, winter, 62-76

[3]. Silayoi, P., & Speece, M., 2007. The importance of packaging attributes: a conjoint analysis approach.
European Journal of Marketing, 41 (11/12), 1495-1517.

[4]. Wells, L.E., Farley, H., & Armstrong, G.A., 2007. The importance of packaging design for own-label
food brands. International Journal of Retail & Distribution Management, 35 (9), 677-690.

[5]. Butkeviciene, V., Stravinskiene, J., & Rutelione, A., 2008. 'Impact of consumer package
communication on consumer decision making process', Inzinerine Ekonomika-Engineering Economics (1),
pp. 57-65.

[6]. Ampuero, O., & Vila, N., 2006. Consumer perceptions of product packaging. Journal of Consumer
Marketing, 23(2), 100-112.

WEBSITIES

1. www.businesslink.gov.uk.com

2. www.en.wikipedia.org

3. www.citehr.com

4. www.ssc.govt.nz

5. www.worklifeblanance.com

66
 QUESTIONNARIE
A STUDY ON IMPACT OF PACKING AND CONSUMER BUYING DECISION IN
AAVIN PRODUCTS

(With special Reference to Erode co-operative Milk Producers Union Limited)

QUESTIONNAIRE

Name: - ..

Age group : -
a) 15 20 years c) 20 25 years
b) 25 30 years d) 30 & above
Gender :-
a) Male b) female
Occupation:-
a)Student b) Self Employed
c)Salaried

Income own or family (p/month.):-

a)5000-10000 b) 10001-20000
c) 20001-30000 d) 35000 & above

1. Do you like the Packaging of any Aavin product/Brand?

a) Yes b) No

2. Whether Aavin Packaging is attractive?

a) Strongly Attractive b)attractive c) Not attractive

3. How many years using in Aavin products?

(a) Below 2 years (b) 2 5 years

(c) 5 7 years (d) Above 7 years

4. How did you know about the Aavin?

(a) Advertisement (b) Friends / Relatives

(c) Media (d) Others

67
5. Which one is impressed you to buy in Aavin?

(a) milk (b) Milk Kova (c) Ghee (d) Milk Powder

(e) Others

6. Do you purchase aavin products as advised by your family or friends?

a)Yes b) No

7. Rating Level of the Respondents

S.D : Strongly Disagree D: Disagree

N: Normal A:Agree S.A: Strongly Agree

Particular S.D D N A S.A

Leading brand products are

always better

Selection according to life style

Like the color of packaging

Attractions of beautiful
backgrounds

Quality of packaging save product

better

8. Satisfaction Level of the Respondents

H.S : Highly Satisfied S : Satisfied

N : Neutral D.S : Dissatisfied H.D.S : Highly Dissatisfied

Particular H.S S N D.S H.D.S

Quality of Product

Cost of Product

Font Style

68
Condition of Delivery

Communication with the Top

Level Management

9. Do you think the packing information given on aavin packet is useful?

Beneficial up to some extent

Not beneficial

10. Are you aware about information given on food packet?

Yes No
10 (a).If yes how did you come to know?

By food packet by dept. of consumer affair

Awareness programme any other media
By the govt
11. Rating Level of the Respondents

S.D : Strongly Disagree D: Disagree

N: Normal A:Agree S.A: Strongly Agree

Particular S.D D N A S.A

Wrapper design is important for

packaging

Wrapper design inspire you in

purchase

Do you read the printed

information on the package

Innovation is important in
packaging

Preference of better handling and

transportation

69
12. Who is the decision making authority in your family?
a) Father b) Mother c) children d)all of them
13. Do you check the information given on food packet before purchase?

Yes No

13(a).If yes than how often?

Always sometime
Often

14. Before purchasing I would buy food product only after seeing the manufacturing date
on the product.

a) Definitely agree b) Agree c)Definitely not agree.

15. Before purchase I would buy food product only after seeing the ISI mark on the product.

a) Definitely agree b) Agree c)Definitely not agree.

16. Before purchase I would buy food product only after seeing the nutritional facts on the
product.
a) Definitely agree b) Agree c)Definitely not agree.

17. If any other suggestions

_______________________________________________________________________

_______________________________________________________________________

70