TABLE OF CONTENTS

CHAPTER TITLE PAGE

NO. NO.

List of Tables

List of Charts

Introduction

1.1 About the study

I 1.2 Industry profile

1.3 About the company

Main Theme Of The Project

2.1 Objectives of the study

13
2.2 Scope of the study
14
II 2.3 Review of Literature
15
2.4 Research methodology
18
2.5 Limitations of the study
20
III Data Analysis And Interpretation

Findings, Suggestions And Conclusion

4.1 Findings
59
4.2 Suggestions
61
IV 4.3 Conclusion
62
Bibliography

Appendix
 LIST OF TABLES

TABLE NAME OF THE TABLE PAGE

NO. NO.

3.1 Opinion about Gender 21

3.2 Opinion about Age 23
3.3 Consumer awareness about the product 25
3.4 Consumers frequency level of buying 27
3.5 Consumer preference towards aavin products 29
3.6 Consumers preference towards Quantity 31
3.7 Reason for Purchase of products 33
3.8 Consumers opinion about Price Level 35
3.9 Consumers opinion about Quality Level 37
3.10 Consumer Awareness regarding ISI and Agmark standards 39
3.11 Consumer Awareness regarding Advertisement 41
3.12 Consumers opinion about availability of aavin stall near by area 43
3.13 Consumer awareness regarding availability of all aavin products in 45
the stall
3.14 Consumers purchasing level during the train travel 47
3.15 Consumer preferences of aavin stall in railway station 49
3.16 Consumer opinion towards the budget level 51
3.17 Satisfaction of consumers towards service 53
3.18 Opinion of consumers towards package 55
3.19 Satisfaction level of consumers towards Freshness 57
3.20 Overall satisfaction of consumers compared to other products 59
3.21 Gender and Opinion towards the budget level 61
3.22 Age and Customer service 62
3.23 Influence to know the product and purchase level during train travel 63
 LIST OF CHARTS

TABLE NAME OF THE TABLE PAGE

NO. NO.
Opinion about Gender 22
3.1
3.2 Opinion about Age 24
3.3 Consumer awareness about the product 26
3.4 Consumers frequency level of buying 28
3.5 Consumer preference towards aavin products 30
3.6 Consumers preference towards Quantity 32
Reason for Purchase of products
3.7 34

3.8 Consumers opinion about Price Level 36

Consumers opinion about Quality Level
3.9 38

3.10 Consumer Awareness regarding ISI and Agm 40

3.11 Consumer Awareness regarding Advertisement 42

Consumers opinion about availability of aavin stall near by area
3.12 44

Consumer awareness regarding availability of all aavin products in

3.13 the stall 46

Consumers purchasing level during the train travel

3.14 48

Consumer preferences of aavin stall in railway station

3.15 50

Consumer opinion towards the budget level

3.16 52

3.17 Satisfaction of consumers towards service 54

3.18 Opinion of consumers towards package 56
3.19 Satisfaction level of consumers towards Freshness 58
3.20 Overall satisfaction of consumers compared to other products 60
 ABSTRACT

This project is about ―A STUDY ON CONSUMER BEHAVIOUR AND SALES

PROMOTION OF AAVIN MILK & MILK PRODUCTS”. The main objective of the study
is to find out the Sales promotion & consumer behaviour of Aavin milk and milk products. The
research mainly focuses on the factors like quality, consumer preference, price, service,
attitudes and experience of consumers.

In this study, data are collected from the consumers through questionnaire(interview
schedule).,100 samples are selected using convenience sampling. Using the interview schedule
prepared, the 100 consumers are interviewed personally and their opinion was collected.

Secondary data was collected from the management. The collected data is analyzed using
analytical tools like simple percentage and chi-square test. As per the findings, suggestions are
given to the company to take initiation to fulfill the consumer needs.
 CHAPTER – 1

1.1 Introduction about the study

Sales promotion is an important component of a small business's overall marketing strategy,
along with advertising, public relations, and personal selling. The American Marketing
Association (AMA) defines sales promotion as "media and nonmedia marketing pressure
applied for a predetermined, limited period of time in order to stimulate trial, increase consumer
demand, or improve product quality.

A direct inducement that offers extra value or incentive for the product to the Sales force,
distributors, or the ultimate consumer with the primary objective of creating "immediate" sales .

Sales promotion is any initiative undertaken by an organisation to promote an increase

in sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other
elements of the marketing communications or promotions mix). Sales promotions are varied.

Businesses can target sales promotions at three different audiences: consumers, resellers,
and the company's own sales force. Sales promotion acts as a competitive weapon by providing
an extra incentive for the target audience to purchase or support one brand over another. It is
particularly effective in spurring product trial and unplanned purchases. Most marketers believe
that a given product or service has an established perceived price or value, and they use sales
promotion to change this price-value relationship by increasing the value and/or lowering the
price. Compared to the other components of the marketing mix (advertising, publicity, and
personal selling), sales promotion usually operates on a shorter time line, uses a more rational
appeal, returns a tangible or real value, fosters an immediate sale, and contributes highly to
profitability.
Popular sales promotions activities:

(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating promotion.

For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if you sell two
for $1, you are still in profit - especially if there is a corresponding increase in sales. This is
known as a PREMIUM sales promotion tactic.

(b) Customer Relationship Management (CRM) incentives such as bonus points or money
off coupons. There are many examples of CRM, from banks to supermarkets.

(c) New media - Websites and mobile phones that support a sales promotion. For example, in
the United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a
consumer would enter the code into a dynamic website to see if they had won a prize.
Consumers could also text codes via their mobile phones to the same effect.

(d) Merchandising additions such as dump bins, point-of-sale materials and product
demonstrations.

(e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each sandwich
purchase. Once the card was full the consumer was given a free sandwich.

(f) Discounted prices e.g. Budget airline such as EasyJet and Ryanair, e-mail their customers
with the latest low-price deals once new flights are released, or additional destinations are
announced.

(g) Joint promotions between brands owned by a company, or with another company's brands.
For example fast food restaurants often run sales promotions where toys, relating to a specific
movie release, are given away with promoted meals.

(h) Free samples (aka. sampling) e.g. tasting of food and drink at sampling points in
supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to potential
consumers at supermarkets, in high streets and at petrol stations (by a promotions team).

(i) Vouchers and coupons, often seen in newspapers and magazines, on packs.

(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on The
Internet, and on packs.
(k) Cause-related and fair-trade products that raise money for charities, and the less well off
farmers and producers, are becoming more popular.

(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.

Many of the examples above are focused upon consumers. Don't forget that promotions can be
aimed at wholesalers and distributors as well. These are known as Trade Sales Promotions.
Examples here might include joint promotions between a manufacturer and a distributor, sales
promotion leaflets and other materials (such as T-shirts), and incentives for distributor sales
people and their retail clients.

Sales promotion describes promotional methods using special short-term techniques to

persuade members of a target market to respond or undertake certain activity. As a reward,
marketers offer something of value to those responding generally in the form of lower cost of
ownership for a purchased product (e.g., lower purchase price, money back) or the inclusion of
additional value-added material (e.g., something more for the same price).

Objectives of Sales Promotion

Sales promotion is a tool used to achieve most of the five major promotional objectives :

Building Product Awareness – Several sales promotion techniques are highly effective
in exposing customers to products for the first time and can serve as key promotional
components in the early stages of new product introduction. Additionally, as part of the
effort to build product awareness, several sales promotion techniques possess the added
advantage of capturing customer information at the time of exposure to the promotion.
In this way sales promotion can act as an effective customer information gathering tool
(i.e., sales lead generation), which can then be used as part of follow-up marketing
efforts.
Creating Interest – Marketers find that sales promotions are very effective in creating
interest in a product. In fact, creating interest is often considered the most important use
of sales promotion. In the retail industry an appealing sales promotions can significantly
increase customer traffic to retail outlets. Internet marketers can use similar approaches
to bolster the number of website visitors. Another important way to create interest is to
move customers to experience a product.
 Providing Information – Generally sales promotion techniques are designed to move
customers to some action and are rarely simply informational in nature. However, some
sales promotions do offer customers access to product information. For instance, a
promotion may allow customers to try a fee-based online service for free for several
days. This free access may include receiving product information via email.
Stimulating Demand – Next to building initial product awareness, the most important
use of sales promotion is to build demand by convincing customers to make a purchase.
Special promotions, especially those that lower the cost of ownership to the customer
(e.g., price reduction), can be employed to stimulate sales.
Reinforcing the Brand – Once customers have made a purchase sales promotion can be
used to both encourage additional purchasing and also as a reward for purchase loyalty
(see loyalty programs below). Many companies, including airlines and retail stores,
reward good or ―preferred‖ customers with special promotions, such as email ―special
deals‖ and surprise price reductions at the cash register.

CONSUMER BEHAVIOUR:

Consumer behavior is "The study of individuals, groups, or organizations and the

processes they use to select, secure, use, and dispose of products, services, experiences, or ideas
to satisfy needs and the impacts that these processes have on the consumer and society."

The study of consumers helps firms and organizations improve their marketing strategies by
understanding issues such as how

The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products);
The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);
The behavior of consumers while shopping or making other marketing decisions;
Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome;
How consumer motivation and decision strategies differ between products that differ in
their level of importance or interest that they entail for the consumer; and
 How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.

There are four main applications of consumer behavior:

The most obvious is for marketing strategy—i.e., for making better marketing
campaigns. For example, by understanding that consumers are more receptive to food
advertising when they are hungry, we learn to schedule snack advertisements late in the
afternoon. By understanding that new products are usually initially adopted by a few
consumers and only spread later, and then only gradually, to the rest of the population,
we learn that (1) companies that introduce new products must be well financed so that
they can stay afloat until their products become a commercial success and (2) it is
important to please initial customers, since they will in turn influence many subsequent
customers’ brand choices.
A second application is public policy.
Social marketing involves getting ideas across to consumers rather than selling
something.
As a final benefit, studying consumer behavior should make us better consumers.

Benefit of Studying Consumer Behavior

The benefits of studying consumer behavior have significant bearing on marketing and public
relations decisions. Studies focusing on consumer behaviors yield important information and
insight into what consumers are thinking. With these insights, marketing and public relations
firms may enhance their particular marketing campaigns to successfully connect with
consumers.

1. Perceptions
Studying consumer behavior helps marketers understand consumer perceptions
about a particular product or range of products. Uncovering and correcting erroneous
perceptions about a particular product may give marketers an additional competitive
advantage over competitors.
2. Attitudes

Consumer attitudes very often determine consumer beliefs about certain products.
Discovering consumer attitudes allows marketers to fine tune their campaigns to
resonate with a particular consumer niche and deepen marketing reach.

3. Cultures

Changing population demographics around the world affect the way marketing
campaigns are designed. Understanding cultural nuances and subtleties may allow
marketers to help further define their particular target market.

4. Lifestyles

Consumer lifestyles also determine what products appeal to certain consumer

markets. Understanding consumer lifestyles is also a key component of consumer
behavior that lets marketers make the appropriate appeals in promoting lifestyle
products and further consumption of lifestyle products.

5. Experience

Like consumer attitudes, experience also colors consumer responses to certain products.
By studying consumer behavior, marketing professionals can tap into consumer
experiences with similar products to promote consumption and gain competitive
advantage over competitors.
 1.2 Industry Profile

 The Salem District Co-op. Milk Producers’ Union Ltd.,

 Sithanur,
 Dhalavaipatty,
 Salem-636 302.

If a company’s current assets do not exceed its current liabilities, then it may run into trouble
paying back creditors in the short term. The worst-case scenario is bankruptcy. A declining
working capital ratio over a longer time period could also be a red flag that warrants further
analysis. For example, it could be that the company’s sales volumes are decreasing and, as a result,
its accounts receivables number continues to get smaller and smaller.

Working capital also gives an idea of the company’s underlying operational efficiency. Money that
is tied up in inventory or money that customers still owe to the company cannot be used to pay off
any of the company’s obligations. So, if a company is not operating in the most efficient manner
(slow collection), it will show up as an increase in the working capital. This can be seen by
comparing the working capital from one period to another slow collection may signal an
underlying problem in the company’s operations.

Working capital management is concerned with the decisions which are related with the current
assets and the current liabilities. It means, it concerned with day-to-day management activities.
The key factor, which is used to different long term financial management and short-term financial
management, is the timing of cash. Long term financial decisions like buying capital equipment or
issuing debentures, involve cash which flows over an extended period of time. But a short time
financial decision mainly involves the cash within a year, or within the operating cycle of the
form.

Indian Dairy has been involved in the dairy business since many years. We take pride in
introducing as one of India’s leading manufactures, exporters and suppliers of dairy products, we
at Indian Dairy have shown a new way of living a healthy way of living. We have wide range of
product catering to people of all age. We are continuously stiving for synergy between technology,
system, and human recourse to provide product and service that meet the quality, performance and
pride aspiration of customers. Indian Dairy, one of the leading manufacture & exporter of
skimmed milk powder, desi ghee, condensed milk, casein, full cream milk powder and all kind of
dairy products, has emerged as the indubitable winner of dairy industry. Dairy industry is the most
ancient of India in which dates back to the mythological era of Lord Krishna and king Virata.
Undoubtedly, it can be said that there exists no other substances that can substitute milk so far, as
the wholesome nutritious food is concerned. It had its profound influence over the economy of
rural population both in the past and in the present times too.

As stated, even in the present day trend in the economy, proves the importance of the DAIRY
Industry as powerful tool of social and economic changes. As defined in the democracy, welfare of
the people means welfare of the government. In the process of evaluation under the conditions of
democracy slowly the co-operative movement took the shapes and leaps in the Dairy Development
in the country. Co-operative movement has its initial rules in the field of dairying in , Gujarat State
moved potentially to the other regions for the benefits of the rural people.
Milk is the only natural product, which is a complete source of food; its nutritional potential is
unsurpassed by any other food used by man. The proteins in milk are ideal in quality and balance
top satisfy human amino acid requirements. The contents of mineral and vitamin’s’ is unique, not
only in proportion but also in quality with the exception of vitamin ‘c’ and iron, milk provides all
the nutrients essential for man’s growth and development.Milk is not only a complete food, but
also quality of its nutrients both enhances and extends many nutrients present in proper quality for
example the amino-acid pattern and content of milk proteins are such at they can supplement and
good for the deficiency of most Cereal proteins. The supplementing cereals with milk, improve the
quality and quantity of the protein supply. According to Prof.N.J.Rope man of Haivard medical
school. Milk is the only single article of food that fairly represents the complete diet. It animal
protein. It is on this account milk become an essential integral part of Indian food to both-
vegetarians and as well as to non-vegetarians either directly as milk or indirectly through its
various products. Thus in effect one should remember that it is the protein and other Casenual
micronutrients such as vitamins and minerals, which are the ingredients of the chiefly Solids-Not-
Fat (SNF) part of the milk that is important in milk rather that fat, to weigh the nutritional value of
milk.

Milk Constituents

Milk constituents are mainly divided into three groups namely a) Water b) Fat c) Solid-Not-Fat
(SNF). The constituents other than water are called Total Solids (T.S). Total solids minus the
butterfat are termed Solid-Not-Fat. All the constituents except the fat are known as milk serum.
Butterfat: The fat-exist in milk as an emulsion. Butter fat globules are in the form of small
spherical myriads of 0.1 to 20 microns. The size and arrangement of the globules affect the
creaming ability of milk, the viscosity of cream, and the whipping ability of cream and the
churning of cream to butter. Butterfat is a very rich source of energy and also good source of
vitamins A and D. Butterfat is one of the principle constituents of almost all dairy products

.Proteins: The three principle classes of proteins in milk are casein, lactalbumin and lacto globulin.
The casein accounts for 80% of the total protein content, that lactalbumin and lacto globulin about
20%

Casein: Casein is a protein, which is found in no other product than It exists in milk with calcium
casein ate. It is present in milk in a v “colloidal” dispersion. Because, Casein a protein, it supplies
the body the muscle g material, casein when converted into sodium, casein ate, is used Lrce of
protein in many of the milk products.
Lactose: Lactose a carbohydrate found only in milk is synthesized in mammary glands. Lactose
serves the body as a source of energy, but it is not a rich as a butterfat in this respect. Lactose is
easily changed by bacterial action to lactic acid, a change that causes to taste sour.

Mineral Constituents: The mineral constituents are salts score to 0.8% of the total weight of the
milk. The potassium and chlorides of milk are in solution, where as the calcium. Phosphorus and
chlorides Milk minerals are very essential as foods are the young, as they help to build up bones
and promote the proper development of it is an important essential for children.

SPECIAL ACHIEVEMENTS

1. The Nucleus Jersey and Stud Farm has been granted the ISO 9002:1994 Quality System
Certification by the Bureau of Indian Standards vide License No. QSC/L-008958 with effect from
25-02-2002 . Now, the Quality System Certification of ISO 9002:1994 has been upgraded to ISO:
9001:2000.

2. This is the second Farm in India to obtain ISO Certification.

3. Among the 13 Farms maintained by the Co-operatives in India , this Farm is the first one to get
ISO 9002:1994 Certification.

4. Even in Tamil Nadu this is the only Farm with ISO 9002:1994 Certification.

5. Out of about 65 semen stations evaluated all over India , The Nucleus Jersey Farm was awarded
“A” GRADE by the Government of India based on the evaluation carried out by the Central
Monitoring Unit constituted by the Department of Animal Husbandry and Dairying, Government
of India. Only 7 Semen Stations have obtained “A” Grade in the country.

6. The data available in this Farm on semen production, Animal maintenance, Fodder production,
trials on new fodder varieties etc are utilized by Research Scholars and Post-graduate students of
Tamilnadu Veterinary and Animal Sciences University and Tamilnadu Agricultural University.

7. For the Milk Producers of Dairy Co-operative Societies of various Districts and for the under
graduate students of Veterinary Colleges this Farm is highly educative.

8. Many Farmer/Producers visit this farm and seek guidance to start small dairy farms of their own
at their places.
 1.3 Company Profile

The prestigious Salem Dairy Complex is situated in about 46 acre of land founded by
Sithanur and Dhalavaipatty villages. It is located just 6km away from Salem Railway Junction and
on the way to Govt Medical College and Salem Steel Plant.

The Salem District Co-op Milk Producer’s Union Ltd has been registered on 10.07.1978 and it
started functioning from 07.10.1978. In the beginning SDCMPU procured 33100 LPD of milk
primary societies. Union gradually expanded its activities and as now reached a daily average
procurement of 4, 36,712 LPD. Then gradually expanded its activities and now reached a daily
average procurement of more than 4 lakh liters per day from 1049 functional DCS. Computer
system with Internet facilities are used for the functioning in the union. Society Milk Billing, Pay
Bills, Transport Bills and Financial accounting of the union are done through the computers.

The quality of milk available after local sales and dispatch to Chennai is converted into products
viz., Butter, Ghee, Skimmed Milk Powder. Ghee and Skim Milk powder are being sold in the
markets all over India through the Tamil Nadu Co-op, Milk Federation Ltd., Chennai with
“AGMARK” and ISI Grades respectively. The commercial production of products viz., Butter,
Ghee, Skim Milk Powder started from 16.08.1983. Our products bear the famous brand name
“AAVIN”

The National dairy development board, Anand through the government of Tamil Nadu and the Tamil Nadu
co-operative milk producer’s federation, has funded the entire project. The project had been funded
under the nation wide operation flood programmed with an aim to bring about a socioeconomic
awakening in rural India. The district union has 728 primary milk co-operative at its base and the Tamil
Nadu co-operative milk producer’s federation as its apex body.
 S.NO PARTICULARS DETAILS

1. Arrival of Tamil Nadu Dairy Development Corporation team 2.10.1974

2. Starting the first set of societies 10.11.1974

3. Registration of Salem District Co-op Milk Producers Union Ltd 10.7.1978

4. Starting of Salem District Co-operative Milk 7.10.1978

5. Area of Operation Salem, Erode,

Namakkal etc

DETAILS OF PROCESSING FACILITIES:

1. Total extent of land 46 Acres

2. Total constructed area of plant:

a. Dairy including Powder plant, Service block, Powder & Butter storage 2966 Sq.mts

b. Godown 825 Sq.mts

c. Garage 580 Sq.mts

d. Administrative Blocks

1. Ground floor 492 Sq.mts

2. First floor 198 Sq.mts

3. Others 84 Sq.mts

3. Capacity of Plant

a. Milk Processing 30000 LPD

b. Milk Powder 10,000 Kgs/day

c. Butter 9000 Kgs/day

d. Ghee 6000 Kgs/day

 CHILLING CENTERS DETAILS

S.NO PARTICULARS NAMAKKAL P.VELLUR ATTUR

1 Year of Commencement 1970 1978 1984

2 Installed capacity(in liters) 50000 50000 130000

3 Area of Land 8 Acres 1.5 Acres 7.39 Acres

4 No of milk routes 8 9 17

THIS UNION IS SPECIALLY FEATURED WITH

 Training Centre

 Progeny Testing Scheme

 Clean Milk Production at Farmer level

 Packaging Station

 Milk Powder Plant

 ISO 9001:2000 Certification

1.6 Functional Analysis

Marketing:
0.1 MARKETING DEPARTMENT:

The Marketing network is managed with 9 Milk Marketing offices, 491 agents for milk and 11 for
products and through the Federation throughout the country and abroad.

ISO Organization

Aavin Salem is an ISO 9001:2000 certified Organization since 24.10.2002

MARKETING
Fluid milk is sold through two different distribution channels
 Milk consumer co-operative institution
 Private agents
The sales takes place outside the state like Ahmadabad, Delhi, Bombay, Pondicherry and
Indore. Head office is located at Chennai. Sales are done only on assignment basis. The consumer
societies and co-operative stores get 30 paise per litre agents get 15 paise per litre margin. The
main activities of marketing section are to float milk and milk products to the consumer at various
distribution points within the Salem district.

MARKETING
The Salem co-operative milk producers’ union ltd has been a dominant player for the last
three details in an in contested manner. On the basis of are the union’s market divided into three
types, which are as follows.
 Local market
 National market
 World market
Objective of Marketing Division
 To develop a market economic outlet for the products produced.
 To monitor customer’s preference.
 To ensure that the resulted milks are available for consumers in time.
 To develop new products to suit the changing requirements.
Types of Milk Being Sold
Two types of milk being sold namely
 Standardised milk
 Full cream milk
4.1 Selling Details of Milk
Particular Standardised milk Full cream milk

Quality Fat:4.5% Fat:6.0%

SNF:8.5% SNF:9.0%

Selling price Rs 14.50/litre Rs 16/litre

Transport charges Rs 0.25/litre Rs 0.25/litre

 Society (Salem only)

National Market:
In national market, the products are marked by and only through Tamilnadu co-operative milk
producers’ federation (TCMPF).Through federation, the Salem milk union receives order and
delivers the products.

World Market:
Recently the salem union has received export license to export their products to other
countries/since recently they got this license , up to date they got order from gulf countries to
supply Ghee, Milk powder

Collection and Despatch Times

Collection morning : 8.30am-11.00am (Avg: 48,000litres)
Evening : 7.30pm-10.00pm (Avg: 30,000litres)
Dispatch morning : 9.00am-12.00pm
Evening : 9.30am-2.30am

Marketed Products and Their Packing

Milk : 500ml 250sachets
Butter : 500gram, 20kg
Ghee : 0.5kg, 1kg, 15kg
Skim milk powder : 0.5kg, 1kg and 15kg
Kova : 25,100,250,500grams

STORES DEPARTMENT
Stores are meant to collect and safe raw material ancillary materials and machinery
spare parts including electrical portion. There are three sections in stores namely spares, daily
consumable (oil, grease packing materials) and society materials.
The main function of the stores management is to maintain the stock level. The
total turnover of stores is in Erode and is insured. Packing materials are purchased once in every 3
months. The cost of packing turnover is 25 lakhs. In the storage department, but butter is stored at
temperature 30 degree. The milk powder is also stored and when there is demand they as
converted into milk for sale. Two godown facilities to store the milk powder, like 1000 tons and
800 tons capacity.

Raw material storage

Number of Chiller :3
Capacity : 30,000 litres/ hr each
Temperature : 35° -4 °C
Raw Milk Silos :3
Capacity : 15,000 litres each at 4- 5°C
Number of Pasteurizers :3
Capacity : 10,000 litres / hr each
Number of Cream Pasteurizers
Capacity : 2,500 litres/ hr
Number of Cream Separators
5,000 litres/hr- 4 in no
10,000 litres /hr – 2 in no
Number of Silos
Pasteurized with whole milk : 5(30,000 lts each)
Pasteurized skim milk : 4(60000 lts each)
Pasteurized cream : 4(1- 10,000 lts & 3-5,000 lts)

Quality Control
The wing comprises two sections: as Chemical and Bacteriological. The role of the
lab is to assist in stage-wise testing and reporting the quality status of milk processed and
standardized so that milk of the correct standards are prepared and marketed. Similarly Cream,
Butter, Butter-Milk, Ghee and Skim Milk Powder are tested at regular intervals both during
production and storage to check that there is no quality deterioration. Water, cleaning chemicals
packing materials, etc., are also tested regularly to ensure their conformity to pre-set
standards. The bacteriologists check incoming and processed in milk and also milk products in
addition to water & environmental air to ensure that they are free from harmful
microorganisms. They also check the sterility of plant and equipment to ensure their hygienic
status. The Dairy has an effluent treatment plant. The effluent is tested periodically to ensure that
it satisfies the standards prescribed by the Tamil Nadu Pollution Control Board.

Production:

Ice creams:

Aavin ice cream is very well accepted by all segment people due to its high quality. The calorific
value of Aavin ice cream is 116 Kcal per 100 ml and it contains 5g Fat, 3.1g Protein, 5.4 gm
Carbohydrate, 0.6 g minerals and 8 g added sugar. Due to high content of sugar, diabetic and
calorie conscious people are deprived of taking ice cream and hence it is highly essential to
develop alternate product to cater the need of all the people. Hence Aavin has proposed to
introduce Sugar- free ice cream. It contains unique Sucralose at 320 ppm level which is an
artificial sweeter, derived from cane sugar. It does not affect the blood sugar

Products

This dairy manufacture Butter, Ghee, Skim Milk Powder, Khova, Gulab Jamun, Mysorepa,
Milk Peda, · Butter Milk, Curd, Soan pupdind Ice cream.

Milk power:
power:
MILK POWDER PLANT
Salem diary has a well equipped powder plant for the production of SMP. The
designed capacity of the plant is 10T /day. But the actual production capacity of the plant is
8T/day. This is due to less TS (8.4-8.6%).According to the designed capacity if the SM has
9.4%TS, then the output will be 10T/day .powder plant consists of 2 sections –an evaporating unit
for concentrating SM to TS level around 40-45% and a spray drying unit for converting the
concentrated milk into powder. out of 4.5 lakh litres of milk procured, about 60,000 L of
pasteurised milk is used for the manufacture of SPM. Powder plant has got 2 skim milk silos each
having storage capacity of 60,000L.

The evaporation unit is equipped with the falling film triple effect evaporator to
minimise the steam consumption. The SM from the silo is fed to the evaporation plant at a rate of
4800kg/hr9due to less total solid content in skim milk ), but the designed capacity is 5100 kg/hr.

After receiving the lab report, SM is pumped into the feed balance tank .from the FBT, the
SM is pumped to the condenser through coiled tubes where the SM is at 6°C , is preheated to
around 40-45°C by the vapour collected from the evaporator . Then the SM at 45°C is passed
through the calendria III,II,I respectively where in all these calendria, the incoming SM is heated
by the outgoing heated water then the milk enters the pasteuriser and held at pasteurization
temperature (90°C), for 15 sec .
After pasteurisation ,milk enters the calendria I were the vacuum is maintained at
the level of 580mmHg, hence boiling of milk occurs at 68°C.the vapour and the milk water the
vapour separator from there the milk is pumped to calendria III, boiling occurs at 48°C at a
vacuum level around 680mm of Hg is maintained .then that milk is pumped into calendria II
where final boiling occurs at 56cC and vacuum level is 620mm Hg then the concentrated milk is
pumped to the feed balance tank of the spray dryer .on the way to the fed tank the concentration of
milk is analysed by using Baume refract meter. The condensed milk should have Baume reading
19-22, which is the correct concentration for spray drying process.

In the case of lower Baume reading, the milk is again sent to the evaporator through the
balance tank .the vapour condensate from the condenser, is mixed with water and is pumped to the
spray pond for cooling. The cooled water is recirculated to the condenser.

From the feed tank the concentrated milk is pumped to the spray dryer by means of rotor
pump which rotates at 280 rpm the concentrated milk pumped is allowed to enter in top the
centrifugal disc atomiser wheel rotating at high speed (11000rpm) on a shaft by an electric motor.
The feed tubes take the milk down to the milk distributor from where the liquid runs down into the
wheel. Due to rotation of the wheel, milk is flown out at high speed through radial channels in the
wheel and as a result the milk is atomised into a very fine spray .the normal size of the particles
ranges from 200-250 microns. The hot air at a temperature of around 190°C is obtained by the
heat transfer from the steam which is passed through the coiled tubes at a pressure of 14 kg/sq cm.
The air is filtered by passing through the fabric filters before it is send to heating section. The milk
droplets are subjected to a stream of hot air flowing co-currently in relation to the falling droplets.
Thereby the droplets of milk are dried and the dry matter fall as powder particles towards the
bottom of the chamber, from which it is carried to the whirl trap, during the travel from the bottom
of the drying chamber to the whirl trap, the temperature of the powder is reduced to 40 C.The fine
particles are carried along with the exhaust air is separated from them by means of cyclone
separator. The separated particles from the cyclone separator also reach the whirl trap .From the
whirl trap the powder is sent to the packing section.

Powder Filling Section

The powder from the spray drier is filled into 25kg bags .Then they are stitched in a
stichwell machine. Stitching is done by pressing the pedal manually at the bottom of the
machine .capacity of the filling section is 25bags they are stored in godown having capacity of
400T at the room temperature. Skim milk powder is usually packed in bulk either in bags or in
barrels. But whole milk powder and baby milk powder are packed in containers preferably with
nitrogen replacing the head space so that the oxygen is only 2 percent by volume.
If powder is to be stored in bulk or storage bins, the storage environment should be
at 30°C or lower and about 20 percent relative humidity.
 The tests conducted during the manufacture of powder are concerning the colour,
texture, organoleptic properties, moisture, solubility index, bulk density and burnt particles. These
tests are conducted every 30-45 minutes. Fat per cent is tested every two hours and
microbiological tests are conducted from samples taken at the beginning, the middle and the end
of the production period. Tests for iron and vitamins are generally conducted by taking composite
sample of an entire batch of powder.

Powder Machine Cleaning Procedure

The CIP cleaning employed in the powder plant is as follows:
Raw water : 15 mts
Lye (1.5 Na2 CO3) : 30 mts
Hot Water : 10mts
Acid (HNO3, 1%) : 15mts
Lye : 5 mts
Hot Water : 15 mts
Total : 90 mts

For the evaporator plant, either after 18-20 hrs of plant operation or 45000 to 90000
litre of skim milk is taken for evaporation, the plant is cleaned by CIP. For spray drying plant,
clean the entire feed system at the end of each run with caustic solution (1.5%). Concentrate tank
in also cleaned manually after the end of each run, atomiser wheel is cleaned manually. The
powder deposits on the walls can be collected by hammering this procedure is followed after every
run (20 hrs). Manual cleaning of the drying chamber is carried out weekly once. The chamber door
is opened and the suction fan is put on .Then the entire sticking particles are swept off using a
brush

PERFORMANCE DATA:
Ambient temperature : 30°C
Concentrated feed at 45°C : 1060kg/hr
Water evaporation : 560kg/hr
Solid concentration in the feed : 40-45%
Feed temperature : 53-55°C
Inlet hot air temperature : 185-190°C
Outlet hot air temperature : 88-90°C
Powder moisture : 3.4%
Supply air quantity : 17,000kg/hr
Conveying air quantity : 4000kg/hr
Pressure drop under main cyclone : 130-150mm WC
Pressure drop under product cyclone : 150-175mm WC
Chamber vacuum : 10mm WC
Steam consumption at 14kg/cm2 : 1260kg/hr
Energy consumption : 112KWH
Powder production : 500kg/hr
Powder temperature at packing : 40°C
Powder storage silos : 4*1000kg

BUTTER:

Butter serves as a balance wheel of Salem diary. The surplus milk is converted into butter
and a portion of it to ghee. Pasteurised cream at 8-10C from cream storage tanks are taken for
butter preparation, with the help of butter churn or Continuous Butter Making Machine (CBM).
The butter obtained is either used for conversion into ghee or for sales in 500gm packs or 20kg
bulk packs.
Operation of Butter Churn
The capacity of churn is around 1500L.After proper cleaning with chlorine water
the cream is pumped to 1/3rd of the churn and closed. The chilled water spray and motor is started.
The churning occurs at 28rpm, breaking at 8rpm, final stage at 15rpm.The whole operation of
batch takes around 2-3 hours of completion. Table butter is prepared in butter churn only. Salt is
added at the final working by sprinkling. If any colour is needed it is added to the cream.

Operation of Continuous Butter Making Machine (CBM)

The CBM comprises of 3 units that that are arranged on the top of each other are
beater, the draining unit and the kneader. The cream is fed to the CBM through a screw pump (for
continuous air free flow).The cream enters the beater, where cream gets separated into fine butter
granules and butter milk. The beater rotates at 1500rpm.Butter milk is drained off and the granules
are washed and worked in the separator with chilled water supply. The butter then passes through
the kneader (a twin screw conveyor) for the air free flow of butter. The fat% of butter obtained
from CBM is around 82-84% milk fat. The quantity of butter depends on the inlet temp and fat
content of cream. For sweet cream, optimum cream content is between 45-50%.For sour cream
between 38-42%.The butter milk is drained. The butter from the butter churn and the CBM is
checked for fat, SNF and acidity. If acidity of butter milk is normal it is mixed with the raw milk.

The CBM is cleaned manually. This is done once in 24 hrs, causing no accumulation of butter. The
cleaning is done after dismantling and washing with hot water, detergent solution, raw water, hot
water and chlorine solution

Butter Packaging Machine

The packaging machine is of complicated mechanism working on a motor and a vacuum pump.
The butter to be packed is fed manually into the hopper, which has twin screw conveyors into a
mould on a rotating head, which helps in the continuous supply of butter. The vacuum pump helps
in parchment paper movement.500blocks are wrapped in parchment paper. This is packed
manually in cartons.
Major portion of butter manufactured by CBM is used for bulk packaging ie., 20kg cooking butter
in CFB cartons. This is used for melting purpose and also despatched to other diaries like Mother
Diary, Calcutta.

Training centre

Salem union Training Centre is imparting various training programmers to the DCS staff
and milk producers of Salem, Erode, Coimbatore and Ooty Unions.Artificial Insemination & First
Aid Trg Secretary / Milk tester Trg
Feeds and Fodder Trg Bulk Milk Cooler Trg and all Refresher courses to the DCS staff.
For Milk Producers, Dairy Animal Management and orientation programmers are being
conducted.

Apart from these, we also cater to the needs of other agencies training on various activities related
to Animal husbandry and Dairying on prior intimation. The Training Centre is featured with
eminent faculties, modern class rooms, teaching aids, boarding and lodging facilities. For
information, Officer In charge, Training centre may be contacted.

SPECIAL FEATURES OF THE COMPANY:

Weekly four rail milk tankers of about 16000 liters of milk is supplied to Delhi(mother dairy),
from the Salem Dairy

i. Average 13000 liters of pure milk is supplied to Chennai metro for sales from Salem Dairy.

ii. Milk product like Butter, Ghee, Skimmed Milk Powder, Pedal, Khova, Flavored Milk,
Butter Milk, Badam Milk Powder, Ice Cream are produced in Salem Dairy and it is selling
according to the customer’s requirements.

iii. The company has ISO 9001:2000 certified and ISI certified for the skimmed milk powder
production and the Salem Dairy Ghee is sold with AGMARK certified.

iv. National wide database laboratory established at Salem Dairy out of 15 milk producers
union selected by National Dairy development Board in India.

v. Union is selling Ghee to THIRUPPATHI THIRUMALAI DEVASTHANAM in tankers for

Laddu preparation.

vi. The union spends 154.42 lakhs, 167.2 lakhs, 169 lakhs, 187.74 lakhs and 219.28 lakhs
were spend for marketing for last five years, which includes transport and agents
commission.

vii. The union spends around 3 lakhs for Advertisement.

1.6 Organization Chart / Structure

FINANCE DEPARTMENT (CHART):
DG (MIN)

M (A/C) M
COSTING

DM (O)

EXE (O)

JR. EXE (O)

TYPER

HELPER
 CHAPTER-2
2.1OBJECTIVES OF THE STUDY
Primary objective:

 The main objective of the study is to study the Sales promotion & consumer

behaviour of Aavin milk and milk products in Erode town

Secondary objective:

 To identify the sales promotion strategies adopted by the aavin milk company

 To study the quality and consumer preferences towards aavin milk& milk
products.

 To identify the satisfaction level of customers towards the price & service
provided by the company.

 To study the attitudes and experience of customers towards aavin products and to

suggest the valuable measures based on the findings.

 2.2 SCOPE OF THE STUDY

The scope of the study is to identify and analyse the consumer behavior towards

the service, price & quality of aavin milk & milk products and also to analyse the sales

promotional strategies adopted by the company.This study will help the organization to

increase the sales of the Aavin milk and milk products and to strengthen the sales

promotion strategies.
 2.3 REVIEW OF LITERATURE

Ketelaar, et al., (2001), As the flow of online sales increases and more companies begin to
move into the digital arena, advertisers and digital designers are forced to stay on the cutting
edge in terms of website design and content presentation. In a search to find website design
techniques that increase information flow and website stickiness, two possibilities were found,
persuasive navigation and "open", or visually rhetorical, online advertising. These two
techniques focus on presenting targeted information to consumers, in the form of website
content advertisements, while they browse a given website.

Bright (2004) , The concept of intra-site advertising was tested by him and was found to
be effective in terms of increasing information flow on a controlled website. Open advertising
has not yet been tested in the online environment, with current studies focusing on print media,
however it presents promises potential as an online persuasion technique. This paper will further
explore the application of open advertising in the online context as well as elements of
interactivity and design.

(Zakon, 2002) says that the Web has come to encompass some 38 million plus websites.
It is a tossup as to whether any of these websites effectively communicate with their target
audience in a manner that is both user-friendly and efficient in terms of brand impact and sales.
As most consumer advocates have come to know, digital environments that frustrate users
dramatically decrease brand loyalty and can cause consumers to completely abandon a brand
community in both real and virtual worlds. In an effort to stem off this flow of frustration, two
new digital design techniques provide an intriguing way to increase information flow within
digital environments while providing imagery and content that makes users feel intelligent and
engaged. These new design techniques are persuasive navigation and open online advertising,
respectively. One technique deals with the information architecture of the website, while the
other addresses imagery; both in an equally seductive fashion.
 Kioumarsi et al.,(2009),says that Personality characteristics impact consumer behavior
because they shape the way in which consumers respond to messages at a given time. This
response changes minute to minute based upon the unique characteristics of the target consumer
and their ongoing life experience. The online environment presents a vast opportunity for
companies to interact with consumers on a personal, customized level. Individual differences
are an important aspect of this interaction as they provide insight into how people with varying
levels of experience with the online environment respond to interactive persuasion techniques.

Friestad and Wright (1994), in their presentation of the PKM, posit that the
effectiveness of advertising persuasion techniques depends upon the level of persuasion
expertise each individual possesses. In an online environment, measurement of this effect can
be achieved by looking at user experience levels, self efficacy, and number of hours spent
online. General knowledge gleaned from the PKM dictates that consumers with more
experience in the online environment will be better at coping with persuasion techniques
therein, such as open, visually rhetorical advertisements.

Ketelaar et al(2004) conducted the study that an individual's need for cognition refers
to their motivation to engage in meaningful cognitive thought or undertaking. A consumer's
need for cognition will impact their ability to deal with tasks and social settings, such as
responding to advertising messages or calls to action. This applies directly to the concept of
open, visually rhetorical advertising because such messages require a higher cognitive
processing load to be understood and learned. Although need for cognition was not found to
impact interpretations of open advertisements in the Ketelaar et al. study, it is still an
interesting variable that can be effectively measured and manipulated for this type of research
endeavor. Additionally, cognitive response, and the need therein serve an important part in the
development of brand attitudes within a target consumer.
 McGinnis and Jaworski (1989) ,The concept was elaborated upon by in their seminal
piece regarding information processing in advertising: "Cognitive and emotional responses
related to imagined product consumption experiences are the strongest determinants of brand
attitude. As shown, need for cognition is linked to the development of brand attitude in
consumers. When examined in terms of its relationship to time spent processing online, visually
rhetorical advertising, need for cognition could prove to be an interesting differentiator within
the sample group. In addition to need for cognition, an internal motivation toward the product
being advertised should be apparent within driven consumers. This motivation helps push the
consumer toward unraveling the visual riddle presented in an open advertisement. Type of
motivation, either utilitarian ("goal-oriented") or hedonic ("expressive"), is a diverse and
interesting factor to analyze across consumer groups.

Phillips (2000) shown in research undertaken by, consumers with utilitarian, goal-
oriented motivations are keen on evaluating product attributes and therefore less likely to be
attracted to open advertisements. Consumers with hedonic or "expressive" goals are more likely
to seek out the entertainment value in the open advertisement.

Huang (2003), in his online study of websites, found that level of attention in consumers
is most linked to utilitarian design while both control and interest are linked to hedonic
performance measures.

Liu, et al (2002), based on their online research, concluded that higher levels of active
control within consumers resulted in being geared towards more utilitarian, goal-based website
designs. As shown in these studies, motivation is an individual difference worth characterizing.
Type of consumer motivation is extremely important when analyzing online consumer behavior
as it helps categorize amongst user groups, across sites.
 2.4 RESEARCH METHODOLOGY

RESEARCH DESIGN
The research design chosen is descriptive as the study reveals the state of facts existing.
Descriptive research design:
Descriptive research studies are those studies which are concerned with describing the
characteristics of a particular individual, or a group. The study is concerned whether certain
variables are associated with the study. And also the study is concerned with specific
predictions, with narration of facts and characteristics concerning an individual, group or
situation.

METHODS OF DATA COLLECTION:

While deciding about the method of data collection for the study the researcher should keep in
mind the two types of data collection.

Primary Data:
Data has been collected from few respondents by communicating with them directly and
discussing their views about the organization. Most of these included informal discussion with
the employees. One of the other sources of collecting the primary data was by distributing the
questionnaires and getting back the responses for them. Such questionnaires were distributes
among the production employees and also the executive level employees.

Secondary Data:
Secondary data has been collected from the following sources:
 Books and journals at the organization and the college library.
 Through the internet.
SAMPLING:

Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern, especially for
the purposes of statistical inference.

Convenience sampling:

Convenience sampling is a type of nonprobability sampling which involves the sample being
drawn from that part of the population which is close to hand. That is, a sample population
selected because it is readily available and convenient. It may be through meeting the person or
including a person in the sample when one meets them or chosen by finding them through
technological means such as the internet or through phone.

Sample Size

The size of the sample selected for study is 200 units.

DATA ANALYSIS

Collected primary and secondary data are scheduled to suitable table for the purpose of
analysis. Suitable statistical tools were applied in various places for analysis.

TOOLS FOR DATA ANALYSIS

The collected data have been analyzed with the help of tools like simple percentage
method, chi square test.

Data collected was analyzed using tools like;

 Percentage analysis

 Chi-Square test

 Anova

 Weighted average

 Regression

 Correlation
SIMPLE PERCENTAGE ANALYSIS
Simple percentage analysis refers to a ratio. With the help of absolute figures it will be
difficult to interpret any meaning from the collected data, but when percentages are found out
then it becomes easy to find the relative difference between two or more attributes.
No. of Respondents
Percentage = × 100
Total Number of Respondents

CHI-SQUARE TEST

The Chi-square test is for testing the independence of two variables and testing hypotheses
concerning proportions. One of the tests of proportions is that of testing the differences among
several population proportions, which is an extension of testing the difference between two
population proportions. This Chi-square test is used for testing the difference between two
population proportions, testing the difference among several population proportions. The Chi-
square test can be used to test the differences among (c) population proportions by using a
tabular design for the analysis of the frequencies

Chi-Square test enables whether or not two attributes are associated. Chi-Square is
calculated as follows.

2
(O – E)
2
=
E

Where

O = observed frequency of the cell in row and column

E= expected frequency of the cell in rows and column

Degree of freedom ( DF ):

DF = (r-1)* (c-1)

Where

R=Number of rows in the table.

C=Number of columns in the table.

 2.5 Limitations of the study

 Some customers hesitate to fill the questionnaire.

 It is not assured that the responses from all the respondents are true as some of them
may like to tell the incorrect information.
 The survey was conducted in a short period as a part of the curriculum.
 Certain individuals took more time than require for answering the questionnaire.
 CHAPTER -3

ANALYSIS AND INTERPRETATION Table

No.1

Table showing the Opinion about Gender

Particulars No. of Respondents Percentage

Male 76 76

Female 24 24

TOTAL 100 100

Interpretation

From the above table it is clear that 76% of the respondents are male and the remaining
24 % of the respondents are female.

CHART NO.1

Chart showing the Opinion about Gender

 Table No.2
Table showing the Opinion about Age

Particulars (In years) No. of Respondents Percentage

18-20 20 10
21 – 30 85 42.5
31 – 40 65 32.5

Above 41 30 15

TOTAL 200 100

Sources : Primary Data

Interpretation

From the above table 42.5 % of the respondents are coming under the age group of 21 –
30 yrs and 32.5 % of the respondents are under the age group of 31 – 40 years and Above 41 are
15%.
 Table No.3

Table showing the Consumer awareness

Awareness of aavin No. of Respondents Percentage

products

Friends 20 10

Relatives 30 15

Neighbors 40 20

Advertisement 110 55

Total 200 100

Interpretation:

From the above table it is clear that, 10% of respondents know about the aavin milk
through friends,15% of the respondents are through relatives, 20% of the respondents are
through neighbors and 55% of respondents are through advertisement.
 CHART NO.3

Chart showing the Consumer awareness

10%
 F t
r
i
5 e
n
d
s

R
e
l
a
t
i
v
e
s

N
e
i
g
h
b
o
r
s

A
d
v
e
r
t
i
s
e
m
e
n
 Table No.4

Table showing the frequency level of buying

Frequency in buying No. of respondents Percentage

Once in a day 150 75

Twice in a day 40 20

Once in a week 5 2.5

Occasionally 5 2.5

Total 200 100

Interpretation:

From the table it is clear that, 75% of respondents prefer to buy Aavin milk once in a
day,20% of respondents prefer to buy Aavin milk twice in a day,2.5% of respondents prefer to
buy Aavin milk once in a week and 2.5% of respondents prefer to buy milk occasionally.
 CHART NO.4

Chart showing the frequency level of buying

80 75%
70
60
50
40
30
20%
20
10
3% 2%
0
Once in a day Twice in a day Once in a week Occasionally
 Table No.5

Table showing the consumer preference towards aavin products

Customer preference No. of respondents Percentage

Milk 120 60

Sweets 25 12.5

Curd 30 15

Butter 25 12.5

Total 200 100

Interpretation:

From the table it is clear that, 60% of respondents prefer to buy Aavin milk ,12.5% of
respondents prefer to buy Aavin sweets ,15% of respondents prefer to buy Aavin curd and
12.5% of respondents prefer to aavin butter.
 CHART NO.5

Chart showing the consumer preference towards aavin products

60%
60

50

40

30

20 15%
13% 12%
10

0
Milk Sweets Curd Butter
 Table No.6

Table showing the customers preference towards Quantity

Quantity No. of respondents Percentage

2 Litre 20 10

1 Litre 160 80

½ Litre 10 5

¼ Litre 10 5

Total 200 100

Interpretation:

From the table it is clear that, 10% of respondents buy 2 litre of milk per day,80% of
respondents prefer to buy1 liter ,5% of respondents buy ½ Liter and 5% of respondents buy ¼
per day.
 CHART NO.6

Chart showing the customers preference towards Quantity

 80%
80
70
60
50
40
30
20 10%
5% 5%
10
0
2 Litre 1 Litre ½ Litre ¼ Litre
 Table No.7

Table showing the Reason of Purchase

Reason of purchase No. of Respondents Percentage

Quality 120 60

Freshness 25 12.5

Neat package 15 7.5

Easy availability 40 20

Total 200 100

Interpretation:

From the above table it is clear that, 60% of respondents prefer to buy aavin milk due to
quality, 12.5% of respondents prefer to buy due to freshness, 15% of respondents buy due to
neat package and 20% of respondents buy because of easy availability.
 CHART NO.7

Chart showing the Reason of Purchase

70
60%
60
50
40
30
20%
20
13%
10 7%

0
Quality Freshness Neat package Easy
availability
 Table No.8

Table showing the Price Level

Price level No. of Respondents Percentage

Strongly Agree 50 25

Agree 100 50

Neither agree nor disagree 25 12.5

Disagree 20 10

Strongly Disagree 5 2.5

Total 200 100

Interpretation:

From the above table it is clear that, 25% of respondents are strongly agree with the
price level of aavin milk, 50% of the respondents are agreed, 12.5% of the respondents are
neither agree nor disagree,10% of respondents are disagree and 2.5% of respondents are
strongly disagree.
 CHART NO.8

Chart showing the Price Level

 50%
50
45
40
35
30 25%
25
20 13%
15 10%
10 2%
5
0
Strongly Agree Neither Disagree Strongly
Agree agree nor Disagree
disagree
 Table No.9

Table showing the Quality Level

Quality level No. of Respondents Percentage

Strongly Agree 40 20

Agree 120 60

Neither agree nor disagree 30 15

Disagree 5 2.5

Strongly Disagree 5 2.5

Total 200 100

Interpretation:

From the above table it is clear that, 20% of respondents are strongly agree with the
quality of aavin milk, 60% of the respondents are agreed, 15% of the respondents are neither
agree nor disagree,2.5% of respondents are disagree and 2.5% of respondents are strongly
disagree.
 CHART NO.9

Chart showing the Quality Level

2.5% 2.5%
Strongly Agree
20%
15%
Agree

Neither agree nor

disagree
Disagree

Strongly Disagree
60%
 Table No.10

Table showing the Consumer Awareness regarding ISI and Agmark standards

Consumer awareness No. of Respondents Percentage (%)

Yes 50 25

No 150 75

Total 200 100

Interpretation:

From the table it is clear that, 25% of the respondents have the awareness regarding ISI
and Agmark standards and 75% of the respondents are not having the awareness regarding ISI
and Agmark standards.
 CHART NO.10

Chart showing the Consumer Awareness regarding ISI and Agmark standards
 75%
80
70
60
50
40 25%
30
20
10
0
Yes No
 Table No.11

Table showing the Consumer Awareness regarding Advertisement

Consumer awareness No. of Respondents Percentage (%)

Yes 120 60

No 80 40

Total 200 100

Interpretation:

From the above table it is clear that, 60% of the respondents have the awareness of aavin
milk through advertisement and 40% of the respondents have not seen the advertisement.
 CHART NO.11

Chart showing the Consumer Awareness regarding Advertisement

60
60
50 40%
40
30
20
10
0
Yes No
 Table No.12

Table showing the availability of aavin stall near by area

Availability No. of Respondents Percentage (%)

Yes 110 55

No 90 45

Total 200 100

Interpretation:

From the above table it is clear that, 55% of the respondents say aavin stall is available
near by their area and 45% of the respondents say aavin stall is not available nearby their area.
 CHART NO.12

Chart showing the availability of aavin stall nearby area

 55%
60
45%
50
40
30
20
10
0
Yes No
 Table No.13

Table showing the Consumer awareness regarding availability of all aavin products in the
stall

Awareness about all No. of Respondents Percentage

aavin products in stall

Strongly Agree 30 15

Agree 30 15

Neither agree nor disagree 130 65

Disagree 5 2.5

Strongly Disagree 5 2.5

Total 200 100

Interpretation:

From the above table it is clear that, 15% of the respondents are strongly agree that
they are aware about the availability of all aavin products in the stall,15% of the respondents
are agreed, 65% of the respondents are neither agree nor disagree,2.5% of respondents are
disagree and 2.5% of respondents are strongly disagree.
 CHART NO.13

Chart showing the Consumer awareness regarding availability of all aavin products in the
stall

3% 2% Strongly Agree
 15%
Agree
15%
Neither agree nor
65% disagree
Disagree

Strongly Disagree
 Table No.14

Table showing the purchasing level during the train travel

Purchasing level No. of Respondents Percentage

Yes 100 50

No 100 50

Total 200 100

Interpretation:

From the above table it is clear that, 50% of the respondents have the habit of buying
aavin milk in the time of train travel and 50% of the respondents do not have the habit of
buying aavin milk in the time of train travel.
 CHART NO.14

Chart showing the purchasing level during the train travel

60
50% 50%
50

40

30

20

10

0
Yes No
 Table No.15

Table showing the consumer preferences of aavin stall in railway station

Consumer preferences No. of Respondents Percentage

Yes 110 55

No 90 45

Total 200 100

Interpretation:

From the above table it is clear that, 55% of the respondents need a aavin stall in
railway station and 45% of the respondents do not need a aavin stall in railway station.
 CHART NO.15

Chart showing the consumer preferences of aavin stall in railway station

 55%
60
45%
50
40
30
20
10
0
Yes No
 Table No.16

Table showing the Consumer opinion towards the budget level

Opinion of price comes No. of Respondents Percentage

under the budget

Strongly Agree 10 10

Agree 70 70

Neither agree nor disagree 12.5 12.5

Disagree 5 5

Strongly Disagree 2.5 2.5

Total 100 100

Interpretation:

From the above table it is clear that, 10% of the respondents are strongly agree that the
aavin milk comes under their budget, 70% of the respondents are agreed, 12.5 % of the
respondents are neither agree nor disagree, 5% of the respondents are disagree and 2.5% are
strongly disagree.
 CHART NO.16

Chart showing the Consumer opinion towards the budget level

80
70%
70
60
50
40
30
20 12%
10%
10 5% 3%
0
Strongly Agree Neither Disagree Strongly
Agree agree nor Disagree
disagree
 Table No.17

Table showing the satisfaction of consumers towards service

Satisfaction of Service No. of Respondents Percentage

Strongly Agree 30 30

Agree 50 50

Neither agree nor disagree 10 10

Disagree 7.5 7.5

Strongly Disagree 2.5 2.5

Total 100 100

Interpretation:

From the above table it is clear that, 30% of the respondents are strongly agree with
the service provided by aavin, 50% of the respondents are agreed, 10% of the respondents
are neither agree nor disagree,7.5% of respondents are disagree and 2.5% of respondents are
strongly disagree
 CHART NO.17

Chart showing the satisfaction of consumers towards service

3% Strongly Agree
 7%
10% 30% Agree

Neither agree nor

disagree
50%
Disagree

Strongly Disagree
 Table No.18

Table showing the opinion of consumers towards package

Quality of package No. of Respondents Percentage

Strongly Agree 30 30

Agree 40 40

Neither agree nor disagree 15 15

Disagree 10 10

Strongly Disagree 5 5

Total 100 100

Interpretation:

From the above table it is clear that, 30% of the respondents are strongly agree that the
package of aavin milk are neat & clean, 40% of the respondents are agreed, 15% of the
respondents are neither agree nor disagree,10% of respondents are disagree and 5% of
respondents are strongly disagree.
 CHART NO.18

Chart showing the opinion of consumers towards package

 40%
40
35 30%
30
25
20 15%
15 10%
10 5%
5
0
Strongly Agree Neither Disagree Strongly
Agree agree nor Disagree
disagree
 Table No.19

Table showing the satisfaction level of consumers towards Freshness

Satisfaction level of No. of Respondents Percentage

Freshness

Highly satisfy 10 10

Satisfy 30 30

Neutral 30 30

Dissatisfy 20 20

Highly dissatisfy 10 10

Total 100 100

Interpretation:

From the above table it is clear that, 10% of the respondents are highly satisfy with the
freshness of aavin milk, 30% of the respondents are satisfied, 30% of the respondents are
neutrally accept the statement ,20% of respondents are dissatisfied and 10% of respondents are
highly dissatisfied.
 CHART NO.19

Chart showing the satisfaction level of consumers towards Freshness

 30% 30%
30
25
20%
20
15
10% 10%
10
5
0
Highly Satisfy Neutral Dissatisfy Highly
satisfy dissatisfy
 Table No.20

Table showing the Overall satisfaction of consumers compared to other products

Satisfaction level of
No. of Respondents Percentage
consumers

Highly satisfy 100 50

Satisfy 80 40

Neutral 10 5

Dissatisfy 5 2.5

Highly dissatisfy 5 2.5

Total 200 100

Interpretation:

From the above table it is clear that, 50% of the respondents are highly satisfy with the
aavin milk& milk products when compared to other products, 40% of the respondents are
satisfied, 5% of the respondents are neutrally accept the statement ,2.5% of respondents are
dissatisfied and 2.5% of respondents are highly dissatisfied.
 CHART NO.20

Chart showing the Overall satisfaction of consumers compared to other products

5% 3% 2%
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 Table No.21

CROSS TABULATION BETWEEN GENDER AND OPINION TOWARDS THE

BUDGET LEVEL

OPINION TOWARDS THE BUDGET LEVEL Total

GENDER Neither
Strongly Strongly
Agree agree nor Disagree
Agree Disagree
disagree

Male 12 117 14 6 3 152

Female 8 23 11 4 2 48

20 140 25 10 5 200

Source : Survey data

(H0) : There is no significant relationship between gender and opinion towards the budget
level.

(H1) : There is significant relationship between gender and opinion towards the budget
level.

CHISQUARE TEST

2
Calculated Value = 14.793

Degree of freedom = 4

Table value = 9.488

Significant level = Significant at 5% level

It is observed from the above table that the calculated value of chi-square is greater than
the table value. Hence the null hypothesis is rejected and it is concluded that there is significant
relationship between gender and opinion towards the budget level.
 TABLE.22
ANOVA
CROSS TABULATION BETWEEN AGE AND CUSTOMER SERVICE

CUSTOMER SERVICE
AGE Strongly Neither agree Strongly Total
Agree Disagree
Agree nor disagree Disagree

18-20 8 4 4 3 1 20

21 – 30 21 56 5 2 1 85

31 – 40 23 31 6 4 1 65

Above 41 8 9 5 6 2 30

60 100 20 15 5 200

Source : Survey data

(H0) : There is no significant relationship between age and customer service.

(H1) : There is significant relationship between age and customer service.

CHISQUARE TEST

2
Calculated Value = 31.669

Degree of freedom = 12

Table value = 21.026

Significant level = Significant at 5% level

It is observed from the above table that the calculated value of chi-square is greater than the table
value. Hence the null hypothesis is rejected and it is concluded that there is significant relationship
between age and customer service.
 TABLE.23
Regression
CROSS TABULATION BETWEEN INFLUENCING TO KNOW AND PURCHASING
LEVEL DURING TRAIN TRAVEL

Purchasing Level During Train Travel

Factor Total
Yes No

Friends 9 11 20

Relatives 12 18 30

Neighbors 8 32 40

Advertisement 71 39 110

100 100 200

Source : Survey data

(H0) : There is no significant relationship between influencing to know and purchasing level
during train travel.

(H1) : There is significant relationship between influencing to know and purchasing level
during train travel.

CHISQUARE TEST

2
Calculated Value = 25.109

Degree of freedom = 3

Table value = 7.815

Significant level = Significant at 5% level

It is observed from the above table that the calculated value of chi-square is greater than
the table value. Hence the null hypothesis is rejected and it is concluded that there is significant
relationship between influencing to know and purchasing level during train travel.
 CHAPTER-4

4.1 Findings

 From the analysis, it was found that 76 % of the respondents are Male and remaining
people are female.

 42.5% of the respondents are in the age group of 21-30 years.

 55% of respondents know about the aavin milk through advertisement.

 75% of the respondents prefer to buy Aavin milk once in a day and about 20% of
respondents prefer to buy twice in a day.

 It is found that 60% of respondents mainly prefer to buy milk in aavin and the remaining
people prefer to buy aavin sweet,curd and butter.

 80% of respondents prefer to buy1 litre of aavin milk per day and 10% of people buy 2
litre per day.

 60% of respondents prefer to buy aavin milk due to quality and remaining people prefer
because of freshness, neat package and easy availability.

 Most people (75%) strongly agreed that the price of the Aavin milk and milk products are

reasonable and affordable.

 Most of the respondents (80%)agree that the aavin milk and milk products are high in quality,

very few feel that it is inferior in quality.

 Most of the respondents (75%) are not aware of the fact that Aavin milk and milk products are

ISI and AGMARK certified.

 60% of the respondents have the awareness of aavin milk through advertisement.

 55% of the respondents know that the aavin stall is available nearby their area and the
remaining 45% do not know the aavin stall is available in their area.

 65% of respondents neutrally agreed that Aavin milk and milk products are always available in

the Aavin stall.

 50% of the respondents have the habit of buying aavin milk in the time of train travel
and remaining people do not have the habit of buying milk during travel.

 It is found that 70% of the respondents are agreed that the aavin milk comes under their
budget.

 50% of the respondents are agreed with the service provided by aavin.

 40% of the respondents are agreed that the package of aavin milk is neat & clean.

 40% of the respondents are satisfied with the freshness of aavin milk and the remaining
people are not highly satisfied with the freshness.

 50% of the respondents are highly satisfied with the aavin milk& milk products when
compared to other products.
 4.2 SUGGESTIONS

 The amount spent on the advertisement is very low; most of the people still don’t know what all

the products available in the Aavin stall are. The sales of the Aavin products can only be

increased only if people know about them and the only way to achieve is by advertisement.

Various Aavin product names can be made to display along with the pneumonic symbol at the

side of the Aavin vehicles and in the stalls.

 Advertisement plays a crucial role in promoting the products. A small ad can be given in the

front page of the local daily regarding the qualities of the Aavin milk products once in a week.

This will create some awareness about the Aavin milk products.

 The sales of the Aavin milk and milk products can be increased by setting a Aavin stall at the

Erode Railway station. Since the Erode junction being the hub to many rail routes, hundreds of

trains from all over India pass through the junction so surely there will be a huge response from

the train travelers for the Aavin milk and milk products.

 The sale can also be increased by some sales strategies. Since most of the consumers belong to

middle and lower middle class category they will not be able to pay the money daily so credit

system can be followed by collecting some deposit at the starting itself. Free door delivery can

also increase the sales of the Aavin products.

 Automatic vending booths may be installed in main areas in the Erode town to facilitate the

customers to purchase milk round the clock.

 Aavin website may be updated and popularized.

 4.3 CONCLUSION

Promotion of sales and knowing consumer behaviour are important aspects for selling
the product and achieve the highest sales level in the market. Through this study, we conducted
the research entitled ―A study on Consumer Behaviour and Sales Promotion of Aavin Milk and
Milk Products‖. This study helps us to know the sales promotion strategies adopted by the
company and consumer perception towards the product. It also provides the steps to improve
the sales in future and attain the highest growth level in the market.
 Bibliography

1. Philip Kotler – Marketing Management, Prentice Hall of India, 2004.

2. C.R.Kothari – research methodology (methods and techniques), New Age

International Publishers, 2007.

Website www.aavinmilk.com

www.marketingstrategies.org

www.marketingprinciples.com
A Study on Sales promotion and Consumer behavior
of Aavin Milk & Milk Products
QUESTIONNAIRE

Personal data:
Name:

Gender: Male ( ) Female ( )

Age: a)18-20 b)21-30 c)31-40 d)Above 41 - Correlation

Questions:
1. How did you come to know about aavin milk & milk products?
a) Friends
b) Relatives
c) Neighbours
d) Advertisement

2. How frequently will you buy aavin milk products?

a) Once in a day b)
Twice in a day
c) Once in a week
d) Occasionally

3. What kind of aavin products do you prefer to buy?

a) Milk
b) Sweets
c) Curd
d) Butter
4. What is the quantity of aavin milk will you buy?
a) 2 litre
b) 1 litre
c) ½ litre
d) ¼ litre

5. Why you prefer aavin product?

– Weighted Average
a) Quality
b) Freshness
c) Neat package
d) Easy availability

6. The prices of aavin milk products are reasonable?

a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree

7. What do you feel about the quality of aavin milk products?

a) Very High
b) High
c) Satisfactory
d) Low
e) Very low

8. Do you know that aavin products are ISI and AGMARK certified?
a) Yes
b) No
9. All aavin milk products are sufficiently available in the stall?
a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree

10. Have you seen any aavin advertisement?

a) Yes
b) No

11. Is there aavin stall available nearby your home?

a) Yes
b) No

12. Do you aware that all the aavin products are available in the stall?
a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree

13. While you travel in train will you prefer to have aavin milk?
a) Yes 
b) No
14. Do you need aavin stall in railway station?
a) Yes 
b) No
15. Whether the aavin products come under your budget?
a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree

16. What do you feel about the service of aavin milk products?
a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree

17. Do you feel that aavin milk package are clean & neat?
a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree

18. How do you feel about the freshness of aavin milk products?
a) Highly satisfy
b) Satisfy
c) Neutral
d) Dissatisfy
e) Highly Dissatisfy
19. Whether you are satisfy with the aavin milk & milk products when compared to other
milk products?
a) Highly satisfy
b) Satisfy
c) Neutral
d) Dissatisfy
e) Highly Dissatisfy

20. Suggestions:

Thanks for your time