SUMMER INTERNSHIP

REPORT
2016
A brief study on consumer awareness and
preferences analysis of Sudha milk products in
Patna town

DURGESH NANDAN SAHAY

COLLEGE: IIBM, PATNA

“A brief study on
Consumer awareness and preferences
analysis of Sudha milk products in Patna
town”
AT
PATNA DAIRY PROJECT
PATNA

A Project Report Submitted in the Fulfilment of the

requirement for the award of the degree of “POST
GRADUATE DIPLOMA IN MANAGEMENT”
AWARDED BY

INDIAN INSTITUTE OF BUSINESS MANAGEMENT, PATNA

Budh Marg , Patna -800001

Under Guidance of Submitted by

Prof. Niraj Nalin Durgesh Nandan
Sahay
Sr. Faculty Member Roll no: 1
(IIBM,Patna) PGDM (Marketing)
Session -2015-2017
 CORPORATE GUIDE CERTIFICATE

This is to certify that this project report entitled “A brief study on consumer
awareness and preferences analysis of Sudha milk products in Patna
town,” embodies

the result of training work carried out by “Mr. Durgesh Nandan Sahay”, student of
“Post Graduate Diploma in Management” from Indian Institute of Business
Management Patna.

He has undergone training from 01/07/16 to __/__/16 at Sudha (COMPFED),

Patna. No part of this report has been submitted for any other degree or
published in any other form.

Mr. Vandana

(Marketing Manager)

Patna.
 Faculty Guide Certificate

It is certified that the project report entitled “A brief study on consumer

awareness and preferences analysis of Sudha milk products in
Patna town,” is a piece of summer internship programme prepared by Mr.
Durgesh Nandan Sahay , student of PGDM, under my guidance & supervision
for partial fulfilment of PGDM Curriculum of Indian Institute of Business
Management Patna.

His research work was found to be very valuable to our organization. We

wish all the success in her future endeavors.

Prof. NIRAJ NALIN

Faculty (PGDM)

Indian Institute of Business Management Patna.

 CONTENTS
1. Profile of the study
a. Declaration
b. Executive Title
c. Acknowledgement
d. Executive Summary
2. Preface
3. Introduction
4. Objective of the study
5. Scope of the study
6. Limitation of the study
7. Methodology
8. Abstract
9. An introduction to the problem
10. History of COMFED
a. Background
b. Area of operation
c. Physical performance
d. Marketing
e. Processing infrastructure
11. SWOT Analysis
12. Real facts and previous year sales record
13. Graphical presentation
14. Curriculum activities by COMFED
15. Procurement
16. Customer’s questionnaire
17. Retailer’s questionnaire
18. Conclusion

 DECLARATION

I hereby declare that, the project entitled “A brief study on consumer

awareness and preferences analysis of Sudha milk products in
Patna town, ” assigned to me for the partial fulfilment of MBA degree from
Amity Global Business School, Patna. The work is originally completed by me
and the information provided in the study is authentic to the best of my
knowledge. This study has not been submitted to any other institution or
university for the award of any other degree.

Durgesh Nandan Sahay

PGDM 2th SEM

 Executive Title

Since this study is of short duration and I research deeply about the milk
industry and its market, channel of distribution, customers and its strategies.
Hence my project title is:-

“Study of Market Demand and supply for Milk and Milk

Products of Sudha (Comfed)”

Objectives:-

  To understand the Milk industry and its complete distribution chain.

 Since the Milk industry is related to its heavy manufacturing plants
and lastly to retail shop that helps to understand the processes and
 Retail Management.

 Since it has more and less seasonal demand which could help us
to understand the average production and speed production of
 the product.

  To know about the production process of Milk Product.

  To know about customer perception and market demand of Sweets.

  To earn particle knowledge.

 To understand how a project is prepare and how it helps a company
 in his development.
 This project also helps me in understanding the complete distribution
 channel and benefits and problem of supplier and retailers.
  In this project I also came to know about the operation
management and minimum inventory policy of the company since
 the product offered perishable products.
 The time management is very important in perishable product and
I learn a lot about that in this project.
 ACKNOWLEDGEMENT
“Gratitude is the hardest of emotions to express and one often does not find
adequate words to convey what one feels and trying to express it”

The present project file is an amalgamated of various thoughts and

experiences .The successful completion of this project report
would have not been possible without the help and guidance of
number of people and especially to my company guide Ms,
VANDANA (MARKETING OFFICER)
Take this opportunity to thank all those who have directly and
indirectly inspired, directed and helped me towards successful
completion of project report on Marketing Research of Sudha
Dairy (Comfed).

I am also immensely indebted to my project guide, Mr.NIRAJ NALIN

lecturer IIBM , Patna for his illumining observation, encouraging
suggestions and constructive criticisms, which have helped me in
completing this research project successfully.
There are several other people who also deserve much more than a
mere acknowledgement at their exemplary help. I also acknowledge
with deep sense of gratitude and wholehearted help and co-
operation intend.

Durgesh Nandan Sahay

MBA- 3rd Semester

 EXECUTIVE SUMMARY
The training at Patna Dairy Project, COMPFED helped me to gain the practical
experience and the study conducted by me centers around the importance and
position of different dairy industries. A thriving dairy sector is of vital importance
to every person specially farmers. It provides milk, Ghee, Cheese other products
to every person. It provides a source of income to rural and urban enterprises and
productive individuals and also a way for the farmers to make their living
standard high. During my summer training in Patna Dairy Project, COMPFED, the
basic focus of my training was on comparative analysis of pouched liquid milk of
SUDHA. Under this project I had to find out the different players carrying on
business of liquid milk in Patna and also their market share in the same region.
After that we had to make comparative analysis so that we can recommend
suggestion to the Patna Dairy Project, COMPFED to increase its share in the
market in Patna. The training was quite a comprehensive one in itself.

.
 PREFACE
Summer Training is the bridge for a student that takes him from his
theoretical knowledge world to practical industry world. The main purpose of
industrial visit is to expose for industrial and business environment, which
cannot be possible in the classroom.
I feel my selves very grateful that we have got an opportunity to do the
summer training in SUDHA where the management and working culture are
quite excellent. It gives us immense pleasure to have successfully undergone
training in the FMCG sector, which is the upcoming sector in the industry.
This training was quite a comprehensive one in itself, it helped us have the
firsthand experience in:-

  Identification
  Data Collection
  Analysis
 Recommendation/ Suggestion
Identification:-

It is the process of defining the marketing problem and marketing

research problem.

Data Collection and Management:-

It mainly involved maintaining a list of prospects with details and

classifying on certain basis thus providing the required database.

Analysis:-
It is the process of editing, tabulating, and interpreting the data so
that recommendation for action can be effectively made.
Recommendation/Suggestion:-

It is the last step which involves the feedback, and suggestion for the project.
INTRODUCTION
 INTRODUCTION

Milk is the nutrient-rich liquid secreted by the mammary glands of female

mammal’s .The female ability to produce milk is one of the defining
characteristics of mammals. It provides the primary source of nutrition for
newborns before they are able to digest other types of food. The early
lactation milk is known as colostrums, and carries the mother's antibodies to
the baby. It can reduce the risk of many diseases in the baby. The Bihar State
Co-operative Milk Producers’ Federation Ltd. (COMPFED) was established in
1983 as the implementing agency of operational Flood program of dairy
development on “Anand” pattern in Bihar.

History

India is the highest milk producer in the entire globe. India is well known as
the ‘Oyster’ of the global dairy industry, with opportunities galore for the
entrepreneurs globally. It might be dream for any nation in the world to
capitalize on the largest and fastest growing milk and milk

products' market. The dairy industry in India has been witnessing rapid
growth with liberalization. As the economy provides good opportunities for
MNCs and foreign investors to release the full potential of this industry. The
main objective of the Indian Dairy Industry is to manage the national
resources in a manner to enhance milk production and upgrade milk
processing using innovative technologies.
The crossbred technology in the Indian Dairy Industry has further augmented
with the viability of the dairy units by increasing the milk production per
animal. Then subsequently milk production has also increased at an
exponential rate while the benefits of an increase in milk production also
reached the consumers from a relatively lower increase in the price of milk.
The favorable price environment for milk producers for the Dairy Industry in
India however appeared to have weakened during the 90's, a decline in the
real price of milk being noticed after the year 1992. And then slowly regained
it is glory after 1992 to till now.

In India dairying from very much earlier is regarded as an instrument for

social and economic development. The country’s milk supply comes from
millions of small producers, who are dispersed throughout the rural areas. All
these farmers maintain an average herd of one or two milk animals,
comprising cows and/or buffaloes. Mostly ample labor and a small land base
encourage farmers to practice dairying as an occupation subsidiary to
agriculture. As income from crop production is seasonal instead dairying
provides a stable which is a year-round income and also an important
economic incentive for the small farmers.

Brief Introduction

India had tremendous milk production in

40 years and has become the world’s largest milk-producing nation with a
gross output of 84.6 million tons in 2001. The Indian Dairy Industry has
achieved this strength of a producer-owned and professionally-managed
cooperative system, despite the facts that a majority of dairy farmers are
illiterate and run small, marginal operations and for many farmers, selling
milk is their sole source of income. More than 10 million dairy farmers belong
to 96,000 local dairy cooperatives, who sell their products to one of 170 milk
producers’ cooperative unions who in turn are supported by 15 state
cooperative milk marketing federations.
In India dairy business has been practiced as rural cottage industry over the
years. Semi-commercial dairy started with the establishment of military dairy
farms and co-operative milk unions throughout the country towards the end
of the 19th century. Since Independence this Industry has made rapid
progress. A large number of modern milk and milk product factories have
since been established. The organized dairies in India have been successfully
engaged in the routine commercial production of pasteurized bottled milk for
Indian dairy products.

The growth of Indian Dairy Industry during the last three decades has been
impressive, at more than 5% per annum; and in the 90's the country has
emerged as the largest producer of milk. This is not a small achievement when
we consider the fact that dairying in India is largely stringent that farmers in
general keep dairy animals in proportion to their free crop and also are
available for family labour with little or no purchased inputs and a minimum
of marketed outputs. The existence of restrictive trade policy milk in the Diary
Industry and the emergence of Amul type cooperatives have changed the
dairy farming practices in the country. Farmers have gained the favorable
price for their milk and for their production. Which was essentially a self-
reliant one is which is now being transformed into a commercial proposition.

In India Milk production is dominated by small and marginal land-holding

farmers and also by landless labourers who in aggregate own 70% of the
national milk animal herd. And as the crop production on 78% of the
agricultural land still depends on rain, which is prone to both drought and
floods, rendering agricultural income is very much uncertain for most of the
farmers. Dairying, as a subsidiary source of income and occupation, is real
relief to most of the farmers in the society. Usually one or two milk animals
enable the farmers to generate sufficient income to break the vicious
subsistence agricultural-debt cycle.

The Operation Flood which is the successful Indian dairy development

programmed has analyzed that how food aid can be utilized as an investment
in building the type of institutional infrastructure that can bring about
national dairy development. Programs like this, with similar policy
orientations, may prove to be appropriate to dairy development in India.

India in the early 1950's was commercially importing around 55000 tons of
milk powder annually to meet the urban milk demand. Most of the significant
developments in dairying have taken place in India in this century only.
 .INDIAN DAIRY INDUSTRY (NDDB)

National Dairy Development Board, an institution of national importance

was setup by the Government of India to promote plan & organize
programmers for development of dairy & other agriculture based & allied
industries along co-operative lines on an intensive & nationwide basis.

India's Milk Product Mix

Fluid Milk 46.0%

Ghee 27.0%

Butter 6.5%

Curd 7%

Khoa (Partially Dehydrated Condensed

6.5%
Milk)

Milk Powders including IMF 3.5%

 Paneer & Chhana (Cottage Cheese) 2%

Others, Including Cream, Ice cream 1.5%

Total contribution to the economy/ sales

The Indian Dairy Industry engages in the production and processing of milk
& cream. This industry is involved in the manufacture of various dairy
products like cheese, curd, yoghurt etc. The Indian Dairy Industry specializes
in the procurement, production, processing, storage and distribution of dairy
products. India as nation stands first in its share of dairy production in the
international scenario. The industry contributes about Rs 28% of GDP to the
national economy.
 Employment opportunities

The Indian Diary industry which is in the developing stage provides gainful
employment to a vast majority of the rural households. It employs about 8.47
million people on yearly basis out of which 71% are women.

Jobs in Indian dairy industry are mainly in the fields of production and
processing of dairy products. An individual with minimum of 60% marks who
has bachelor’s degree course in the dairy technology can easily be availing an
opportunity to work in this industry. For the graduation course in Dairy
technology one has to qualify the All India Entrance Test that is affiliated to
the Indian Council of Agricultural Research. After that the person can continue
with his masters in dairy technology. Jobs would be for the following
positions.

Dairy Scientists: The main job of the dairy scientists is to deal with

collection of milk and taking care of the high yielding variety of animals.
Dairy Technologists: the work of Dairy technology requires
procurement officers who take the responsibility of collecting milk from
farmers, milk booths and cattle-rearers. This particular procurement
officer should well understand the latest technology that is applicable in
maintaining the quality of milk of the process of transporting it to the

desired location.
Dairy Engineers: dairy engineers are usually appointed is to set up and

maintain dairy plants.

Marketing Personnel: These individuals deal with the sale and
marketing of milk together with milk products.
 Amul's success story

Amul's success had huge impact in the creation of same structure of milk
producers in other districts of Gujarat initially. Amul's experience was driving
force in project planning and execution. The ‘Anand Pattern' was followed in
Kaira district, Mehsana, Sabarkantha, Banaskantha, Baroda and Surat
districts. As even before the setting up of the Dairy Board of India, farmers
and their leaders carried out various tests of the hypotheses that explained
Amul's success. All through these districts, milk producers and their leaders
experienced significant commonalties and found easy, effortless ways to
adapt Amul's game plan to their respective areas. This eventually led to the
Creation of the National Dairy Development Board with the clear mandate of
replicating the 'Anand pattern' in other parts of the country. Initially this
pattern was followed for the dairy Industry but at later stage oilseeds, fruit
and vegetables, salt, and tree sectors also benefited from its success.
 Latest developments

 Indian Dairy Industry is the largest milk producer all over the
world, around 100 million MT Indian Dairy Industries value of
output amounted to Rs. 1179 billion in 2004-05 which
approximately equals combined output of paddy and wheat. With
 1/5th of the world’s bovine population.
 In India the Milk animals constitutes 45% indigenous cattle, 55 %
buffaloes, and 10% cross bred cows

Intensive Dairy Development Programmed (IDDP): The Schemes,

modified under these programs are on the basis of the recommendation of the
evaluation studies. Which were launched during Eighth Plan period and is
being continued throughout the Eleventh Plan with an outlay of Rs. 32.49 core
for 2009-10.

Strengthening Infrastructure for Quality and Clean Milk Production

(CMP): this is a centrally sponsored scheme which was launched in October
2003, which had the main objective of improving the quality of raw milk
produced at the every village level in the India.

Dairy Venture Capital Fund- this is introduced in the Tenth Five Year Plan to
bring about structural changes in unorganized sector, which would measure
like milk processing at village level, marketing of pasteurized milk in a cost
effective manner, quality or the up gradation of traditional technology to
handle commercial scale using modern equipments and management skills.

INDIAN DAIRY INDUSTRY

More than 10 million dairy farmers belong to 96,000 local dairy

Size of the Industry cooperatives, who sell their product to one of 170 milk producers’
cooperative unions who in turn are supported by 15 states
 Cooperative

Geographical Delhi, Punjab, Mumbai, Gujarat, Surat, Lucknow, Bihar,

distribution Hyderabad

Output per annum Growing 5 % per annum

Market The industry contributes about Rs 1,15,970 to the national

Capitalization economy
 COMPANY PROFILE

The Bihar State Milk Co-operative Federation Ltd. (COMFED) was established
in 1983 as the implementing agency of OPERATIONAL FLOOD programme of
dairy development on “Anand pattern” in Bihar and Jharkhand (erstwhile
Bihar). COMFED is the state level co-operative organization, having six district
level affiliated Milk unions in the state of Bihar. As on March 2011, COMFED
had 9775 village dairy cooperatives (DCS) federated into six milk unions
located in the state of Bihar and having average 11.03 lakh kgs of milk every
day. Approximately 5.53 lakh Farmers are presently members of village dairy
cooperatives.

AFFILIATED MILK UNIONS AND AREAS OF OPERATION

Five-district level Milk Producers’ Coop. Unions affiliated to the Milk

Federation were covering eighteen districts until the end of OF program in
March 1997 (end of eighth Plan). One more milk union was organized during
2008-09 and has been affiliated. Number of districts being covered by unions
at present has risen to twenty-six.

Different milk unions, which are organizing the DCS network in

these districts, are listed below:-

Sl No Name of the Milk Unions Areas of District Covered

1. Vaishali Patliputra Milk Patna, Vaishali, Nalanda, Saran ,
Union (VPMU) Sheikhpura & Patna districts

2. Barouni Milk Union, Begusarai, Khagaria, Lakhisarai and part

Barouni of Patna District.

3. Tirhut Milk Union, Muzaffarpur, Sitamarhi, Sheohar, E.

 Muzaffarpur Champaran, Siwan, Gopalganj & West
Champaran districts.
4. Mithila Milk Union, Samastipur, Darbhanga & Madhubani
Samastipur district

5. Shahabad Milk Union, Ara Bhojpur, Buxar, Kaimur and Rohtas

districts

6. Bhagalpur Milk Union, Bhagalpur, Munger, Banka and Jamui

Bhagalpur
The Milk Federation has already taken up organization of Dairy Cooperative
Societies (DCS) in the districts of Gaya, Jahanabad, Arwal and Nawada under
Magadh Dairy Project and work has been initiated by Kosi Dairy Project in
Saharsa, Supaul and Madhepura districts. However, Kosi Dairy Project will be
covering Katihar, Purnia and Araria districts also. At present the total number
of districts covered by unions and Dairy Projects is thirty six (36).

COMFED owns and operates the following plants:-

1. Jamshedpur Dairy, Jamshedpur, Jharkhand

2. Ranchi dairy, Ranchi, Jharkhand
3. Cattle feed Plant – Ranchi, Jharkhand
4. Bokaro Dairy, Bokaro, Jharkhand
5. Gaya Dairy, Gaya including Jahanabad CC, (5 Bulk Milk Chilling Center)
6. Kosi Dairy Project, Purnia (including Kishangunj Dairy, Araria CC,
Katihar CC and Purnia Dairy)
7. One dairy Plant of 4 lakh litre /day capacity at Bihar Sharif with 30
MT powder productions and UHT milk production facilities.

The districts of East and West Singhbhum, Ranchi, Bokaro and Dhanbad now
in Jharkhand are being covered by the dairies directly under the control of
Milk Federation for the supply of milk and milk products to the urban
consumers in these cities. Procurement of milk has been taken up in Ranchi
district only.

MISSION, PURPOSES, GOALS & OBJECTIVES OF ERP IMPLEMENTATION

COMFED has adopted the following Mission Statement: “To integrate all
business processes across the organization in order to provide online
information which will facilitate quick decision making”
(A) Purpose of Implementing SAP ERP

“The purpose of implementing SAP R/3 project is to inculcate into the

organization the best business practices in order to become a world
class organization".
(B) Goals and Objectives

a) Support the core mission statement.

b) Achieve the purpose of implementing SAP R/3.
c) Support the organization to achieve the organizational mission,
vision, objectives and goals.
d) Seamless flow of data and information right from top to bottom as well
as bottom to top.
e) To be customer centric

(C) Objectives

a) Create a new vision of Business policies and processes that are

cost-effective, customer oriented, efficient and innovative.
b) Create and implement an operational environment which is pro-active
and results in
c) Savings in inventory carrying cost
d) Reducing operational costs
e) Eliminating redundancy
f) Promoting near paperless environment
g) Streamlining data flow
h) More effective use of resources
i) Support to the business growth
j) Leverage of administrative costs
k) Providing most advanced real time information system.
l) Standardization of processes
m) Regulatory requirements

The primary benefits expected to accrue from the SAP implementation are:
a) Support a flexible, evolving and responsive business environment.
b) Eliminate non-value adding activities such as data entry
duplication. Improved ability to service customers.
Reduction in administrative costs.
Better management of inventory

Support information sharing and access

Streamline processes and reduce waste.
Better credit control.

MIS reports timely &accurately.

Batch management.
Bihar's rural landscape has undergone a silent revolution under an umbrella
organization that involves around six lakh farmers and provides indirect
employment to many others. It has been brought about by Bihar State Milk Co-
operative Federation Limited (Comfed), which markets milk and milk
products under the brand 'Sudha'. It celebrated its 29th foundation day this
month. Its Managing Director Harjot Kaur told that Comfed was committed to
serve its customers and realize the dream of having at least one Bihari dish in
the plate of every Indian. Although COMFED’s journey started since 1983, and
from then to till now it has achieved so many things not for itself but also for
the many of farmers joined to it. Comfed is a rural organization involving six
lakh farmers. Starting with just 1030 cooperatives in 1983, today the number
of cooperatives has risen to 11,400. The milk production is 11 lakh liters per
day, and the annual turnover in 2011-12 was Rs 1503.00 crore, 11% more
than that of previous year. This is remarkable for any cooperative. In 2011-12,
the Comfed marketed 8.17 lakh liters milk per day, which is a record in its
history. Many farmers associated with our cooperatives have been awarded at
the national level for their performance. Recently Haryana dairy farmers are
vehemently agitating against milk companies, to rule out such agitations we
have taken sufficient steps as farmers are the most precious part of our
organization. Whatever profit the Comfed earns, trickles down to farmers. We
procure milk from farmers at Rs 25.58 per litre, which is higher than the
cooperatives of Haryana, Rajasthan, Punjab, Karnataka and Maharashtra,
apart from others. The recent hike in the prices of milk was also passed down
directly to farmers. There are no middleman between us and the farmers. The
Comfed also provides fodder at subsidized rates to farmers. We also assist
them in artificial insemination and maintaining health of their domestic
animals. As per the new road map for dairy development, we envisage to
produce 44 lakh liters milk per day from the existing 11 lakh liters per day,
covering around 60% villages of the state against the existing 33%. We are
also trying to capture new markets. At present we sell packaged milk in Bihar
and Jharkhand, parts of Orissa, West Bengal, Uttar Pradesh and North-east.
We send bulk milk to Delhi, Manesar and Kolkata, where it is sold by various
dairy cooperatives like Amul and Mother Dairy under their own brand names.
In these places, we plan to market our milk under the 'Sudha' brand.
Moreover, we are also looking to export to other countries like Bangladesh
and Bhutan. Moreover, we have also decided to do value addition to our
existing more than two dozen milk products by increasing their variety.
Consequently, I believe, our cumulative profit would rise by around 15% per
annum in the coming five years.
 Sudha to go international

After positioning Bihar firmly among major milk producing states of the
country, Bihar State Cooperative Milk Producers' Federation Limited
(Comfed) is all set to export milk and milk products to Bangladesh and Bhutan
by early next year. It is also in the final stages of commissioning new dairies at
Biharsharif and Hajipur next month, which will hike its milk-processing
capacity significantly. "We have plans to increase the existing milk production
from 12 lakh liters to 20 lakh liters daily by the end of the year," said Comfed
MD Vipin Kumar. Comfed is the apex cooperative federation of six milk unions
of the state. Patna Dairy Project, run under the name and style of Vaishali-
Patliputra Dugdh Utpadak Sahkari Sangh Ltd, is the lead union. Though the six
unions have their own procurement and marketing arrangements, they
market their products under the brand name 'Sudha'. Comfed has currently 26
milk products. "But we are planning to export only those products that are not
sensitive to temperature fluctuation — like ghee, milk powder and milk in
tetra pack," said Patna Dairy Project MD Sudhir Kumar Singh. "The shelf life of
tetra pack is around 90 days while temperature fluctuation is not a matter of
concern for products like ghee and milk powder," Singh said and added the
products would have to undergo quality test of Export Council of India before
the exports begin. As of now, Comfed has been supplying milk and milk
products to different parts of the country as well as Nepal. And the demand
has been gradually going up. "We have tie-up with Mother Dairy-Kolkata,
Amul- Manesar, Delhi Milk Scheme and other dairy cooperatives in various
states to whom we supply milk and milk products which are sold by them
under their brand names. But now we are planning to sell them under the
brand name Sudha," Singh said. Of the 12 lakh liters of milk produced by
Comfed-affiliated dairies daily, around 3 lakh liters are supplied to Jharkhand,
Orissa, Delhi, Kolkata, Varanasi and Guwahati. "Besides, we export around
50,000-60,000 liters of milk to Nepal daily," Singh said and added Comfed has
6000 milk outlets and 14 dairies which involve as many as 5.5 lakh dairy
cooperative farmers. Patna Dairy will get a shot in the arm when its upcoming
dairy plants at Biharsharif and Hajipur are commissioned in September. "The
dairy at Biharsharif, likely to cost Rs 120 crore, is coming up on a 26-acre plot
of prime land made available by the state government, and will have a
capacity to process four lakh liters of liquid milk per day," Singh said. Besides,
the Biharsharif dairy will have tetra pack facility and could also produce 30
tons of milk powder per day by drying 3 lakhs liters of liquid milk. The dairy
coming up at Hajipur would have a capacity of one lakh liters of milk.
A proposal has been mooted to set up a dairy plant in Chhapra, where a
25,000-litre chilling plant already exists and milk availability is very good.
There's also a plan to set up a 30-tonne capacity milk powder plant either at
Hajipur or Chhapra, the Patna Dairy MD said.

Patna Dairy brought Sheikhpura district under its ambit last year. Now, a milk
chilling plant is being planned in the district. Around 100 primary milk
cooperative societies have already been formed in the district. Singh said the
Patna Dairy this year completed expansion of its balanced cattle feed plant
from 100 tons to 150 tons. Work is in progress for setting up another plant of
the same capacity. The dairy makes cattle feed available to farmers at their
doorstep at a concessional rate of Rs 11.50/kg. Dairy farmers are given
remunerative price of Rs 18 to 26 per litre for milk, depending on the quality
as per set parameters. In its eagerness to expand its footprint to new areas,
Patna Dairy is not ignoring its local base. Said Sudhir Kumar Singh, "At
present, we meet 50% demand for milk in the state capital, while the rest is
met by local milkmen and private dairies. By 2015, our procurement will
increase to 5 lakh liters daily, which at present varies between 2.5 to 3 lakh
liters every day. So, even if supplies by local vendors fall, we will be in a
position to meet the demand of Patnaites in the coming years."

Efficient and effective operation of milk cooperative societies has had a

positive impact on social peace and harmony. "Left extremism is very low in
areas covered by milk cooperatives. This shows that income-generation
activities are the best way to control extremism," Singh said.

Patna Dairy's smooth operation has not gone unrecognized. It won National
Productivity awards four times – in 2000-01, 2002-03, 2004-05 and 2005-06.
Given a new lease of life in 1981, when a team of National Dairy Development
Board took it over, Patna Dairy (or, for that matter, Comfed) has proved, to
use a cliché, that where there's a will, there's a way.
 SUDHA IN INDIA

A new organization Bihar State co-operative milk producer federation limited

came into existence to implement the project and the actual field work was
taken up in 1983.the project originally to complete within 3 years by the end
of 1986 and was closed in 1988. After extending of the project period twice
each time by one year the project was implemented in 8 districts of Bihar
namely Patna, Barouni (Begusarai), Bokaro, Samastipur, Ranchi,
Jamshedpur,Muzzafarpur and Gaya. The Sudha Diary of Bokaro district co-
operative milk process societies limited has 22 years back in the name of
comfed. Sudha dairy is also approving by the National Dairy Development
board. Any dairy industry has some important section as like:-

 Milk Reception Section


 Processing and packing section

 Store keeping section

 Marketing section

 Administration section

 Cleaning section.

 Quality Control Section
ORGANISATIONAL STRUCTURE

COMFED

CHAIRMAN (IAS)

MD (MANAGINGDIRECTOR)

IAS

GM (GENERAL MANAGER)

ASSISTANTMANAGER MANAGER

DEPUTY ASSISTANT MANAGER DEPUTY MANGER

 ASSISTANT MANAGER

  TECHNICAL OFFICER

 MILK PROCUREMENT OFFICER

FODDER DEVELOPMENT OFFICER

EXECUTIVEMANAGER (HEAD OFBRANCH DAIRY)

PROCESSING MARKETING EMPLOYEE

 Objective of the Study

Objective of Internship Training:-

  To know the organization structure of the company.

 To know functions of various departments.
  To understand the work culture.
 To help student to develop necessary interpersonal and
 managerial Skills.

  To gain well rounded view of Management operations.

  To gain firsthand experience from industry.
 To make assessment of the organization in the industry.
 Scope of the study

The scope is limited to the extent of the place, time, organization and their
information collected during the project. It is done as a part of academic study.
The scope o f the study limited to information supplied by the Department
Head and information collected by standing order and settlement copies of
the company. The information collected is limited to the academic knowledge
gained by the student during the study of the course.
 Limitation of the Study

The study is not proposed to be an expert study as it was done by a student

for the purpose of a partial fulfilment of the course in the in plant training,
which is an integral part, in completion and reward of BBA. The Study was
conducted in a short period of six weeks, and so the finding cannot be
generalized for all times. Some of the information's being confidential was not
included in the study. The scope of the study by and large is very vast. It is
difficult to satisfy all the areas; therefore an attempt is made to cover as much
as possible.
 Methodology:

The data collected for this report is as follows:

  Primary data
 Secondary data

Primary data:

The primary data is collected through:

a. Personal observation.

b. Interview with:

  Consumers

  Marketing Department

  Account Department
 Procurement Department

Secondary data:

The secondary data has been collected with reference to various records
of the company, Such as:
1. Website: www.compfed.co.in

2. Files.
 Abstract

Dairy industry is of crucial importance to India. The country is the world’s

largest milk producer, accounting for more than 13% of world’s total milk
production. It is the world’s largest consumer of dairy product, consumer
almost 100% of its own production. In the organized dairy industry, the
cooperative milk producer has an 80%market share. During the operation
flood era (1971-1996), an integrated co-operative dairy development
program on the proven Anand model was implemented in three phases, the
National Dairy Development board being the implementing agency. The Dairy
Board planned and spearheaded India’s dairy programs by placing dairy
development in the hands of milk producers. There are 15 state milk
marketing federations, COMFED being one of them. COMFED is a dairy
cooperative in Bihar that has been primarily responsible, through its
innovative practices, for it to become the leading producer of milk and milk
products in Bihar, along with its presence in neighboring States. The
distinctive features of this paradigm involve managing a large decentralized
network of supplier and producers, learn and efficient suppliers and
producers, simultaneous development of market and suppliers.
 An Introduction to the Problem

Now-a-days most sensitive problem is better solution of problem in the world

of marketing management consumer wants better solution of any problem.
Benefits and satisfaction the consumer are getting from goods manufacturing
to service generation since the concept of marketing management has
changed and now it becomes as consumer oriented. The marketing managers
are supposed to perform multidimensional responsibility. Most of the
company tries to develop the technology to improve their products and
services to satisfy the customer. To satisfy the consumers demand by
supplying the right product to right place and on the right time. By
Globalization and information revaluation where free trade is imposed in all
over the world, for any company to service in the market its distribution
channel should be strong. If the distribution channel of any organization
would be sound than only it can be complete with its competitors. As far as
this particular organization is concern it produces milk and Milk’s products
which are so perishable in nature. So many products require minimum time
reach in the hands of customers beginning from their manufacturing. So,
managing sound distribution network is always a crucial job for marketing
manager of the concern organization. Because it is the time factor that counts
the effectiveness of the manager. Overall distribution strategy involves two
things: -

I. Decision is regarding physical movement of goods.

II. Decision regarding route of channel of distribution.

But before the decision regarding physical movement of goods it is necessary

to decide the route through which the products will move. The longer the
distribution channels the more time and money will be invested. So managing
an appropriate sound distribution channel is always an important job of
marketing manager. As a student of Business Management I have also tried to
understand the mechanism of distribution channel of Patna Dairy. After
getting an opportunity to apply my theoretical knowledge to the real situation
in the Patna Dairy, (a unit of Bihar State Milk Co-operative Federation
Limited)
 HISTORY OF COMFED

1. Background

The Bihar State Co-operative Milk Producers’ Federation Ltd. (COMFED) came
into existence in 1983 as the implementing agency of Operation Flood (OF)
program of dairy development on Anand pattern in the State. All the operation or
erstwhile Bihar State Dairy Co-operation was handed over to COMFED.

2. Area of operation

There are six district level Milk Producers' Co-operative Unions affiliated to
the Milk Federation. These milk unions are covering twenty-six districts
and in addition five districts are being covered by the Federation. Different
milk unions, which are organizing the DCS network in these districts, are as
follows:

Vaishali Patliputra Milk Union, Patna

Covers Patna, Vaishali, Nalanda, Saran and Sheikhpura district

DR Milk Union, Barouni

Covers Begusarai, Khagaria, Lakhisarai and part of Patna Districts.

Tirhut Milk Union, Muzaffarpur

Covers Muzaffarpur, Sitamarhi, Sheohar, East Champaran, West-Champaran,

Siwan and Gopalganj
 Mithila Milk Union, Samastipur

Covers Samastipur, Darbhanga & Madhubani districts

Shahabad Milk Union, Ara

Covers Bhojpur, Buxar, Kaimur & Rohtas districts

Bhagalpur Milk Union, Bhagalpur

Covers Bhagalpur, Munger, Banka and Jamui Districts

The Milk Federation has already taken up organization of Dairy Co-operative
Societies (DCS) in the districts of Gaya, Jahanabad, arwal and Nawada under
Magadh dairy project and work has been initiated in Saharsa, Supaul and
Madhepura districts.

However, kosi dairy project will be covering Kishangunj, katihar, Purnia, and
Araria districts also. The districts of East and West Singhbhum, Ranchi,
Bokaro, Dhanbad, Jamshedpur and other districts of Jharkhand is covered by
the COMFED(dairies) directly also under the control of Milk Federation for the
supply of milk and milk products to the urban consumers in these cities.
Procurement of milk has been taken up in Ranchi districts only. The Milk
Federation has already taken up organization of Dairy Co-operative Societies
(DCS) in the districts of Gaya, Jahanabad, Bhagalpur and GOI has approved a
proposal for dairy development in Supaul, Madhepura and Saharsa districts.
The districts of East and West Singhbhum, Ranchi, Bokaro and Dhanbad are
being covered by the dairies directly under the control of Milk Federation for
the supply of milk and milk products to the urban consumers in these cities.
Procurement of milk has been taken up in Ranchi district only.

3. Physical Performance:

Because of initial teething troubles and the set back caused by the natural
vagaries, the progress was impeded. Regaining of confidence of the milk
producers in the cooperative dairying system shattered due to poor
management by erstwhile Bihar State Cooperation earlier was also of one of
the major reasons for sluggish growth. Lack of functional infrastructure in the
sphere of animal husbandry, especially in breed improvement, artificial
insemination (AI) and animal health cover also contributed to the torpid
progress.

Policy decisions taken six to seven years ago have changed the trend of
growth in all quarter’s of cooperative dairying in Bihar. In the earlier years,
the emphasis was on the horizontal of dairy cooperative network. Now the
strengthening / consolidation of the dairy cooperatives is being done to make
them viable and gradual expansion of area is also being done. Achievements
under different activities are summarized in the following pages.
 4. Marketing

A. Liquid Marketing

In the initial years, the emphasis of COMFED was on organizing DCS and
educating farmers. In the initial years the milk sale moved at snail's speed
from Later, marketing was given a boost by considering it a thrust area, about
5 to 100.55 thousand liters per day in 1987 to 106.54 thousand liters per day
(TLPD) in 1992-93. However, strategies adopted in 1993-94, changed the
trend completely. Year 2003 was declared as "Market Development Year". The
daily average milk marketing has now reached a level of about 531 TLPD
showing a continued increase which is depicted below:

Marketing of milk and milk products is being in about 80 to 85towns / cities

through 7839 (407) outlets in Bihar and Jharkhand. 7, lakhs 81 thousand litre
per day sale of Bihar and Jharkhand is covered by COMFED. It is being
marketed in areas as far as Guwahati and Calcutta besides in cities like
Varanasi and Siliguri.

In order to boost the sale of liquid milk, the dairies adopted the following
strategies:-

Continual improvement in the quality of milk. It was achieved as a

result of taking up taking up Dairy Plant Management (DPM) and
Quality Assurance Program (QAP) by all the dairies with technical and
financial assistance from NDDB / Comfed. Nine out of ten dairies of
Comfed, namely, Patna, Muzaffarpur, Ranchi, Bokaro, Gaya, Bhagalpur,
Jamshedpur, Barouni and Samastipur dairy have already been
accredited with ISO : 9001:2000 and HACCP :ISO and HACCP
certification.
Bihar is one of the few States in the country which has been permitted
by the National Dairy Development Board to use the “Mnemonic”
symbol on the confirming the quality standards fixed by NDDB.

Reaching close to the consumers by expanding the retail network and

establishing new whole day milk booths. Strengthening of door-
delivery system.
 Strengthening of marketing teams by inducting professionals and

better supervision.

Service to retailers and red dressal of consumer complaints.

Liberalizing the terms for appointment of retailer’s viz. reduction in the

security deposits, facility for cash collection, increased commission,

etc. Creating consumer awareness and education.

B. Milk Products Marketing

With a view to improve the financial viability of dairies, broaden the product
mix to serve a larger section of the population and improve the disposal of
milk procured by the DCS, the dairies have resorted to the production of long
shelf-life, value added and fresh milk products(indigenous milk based
products /sweets). The product mix comprises of Ghee, Table Butter, Ice
Cream, Dahi (Mishti and Plain), Lassi (in sachets and Tetra Bricks), Flavoured
Milk, Peda, Kalakand, Gulabjamun, Rasogulla, Paneer (vacuum-packed), and
Milk Cake and Khoa. Besides these products, surplus milk is conserved in the
form of white butter, skim milk powder (SMP) and whole milk powder
(WMP), which are mainly consumed by own dairies. Dairies are in the process
of mechanizing the production processes for having better hygiene, improved
sheltie life and commercial production. All the products are sold under
‘SUDHA’ brand name.

AI's Performed

Adequate arrangements have been made to expand the coverage of dairy co-
operative societies under this program. For AI training, training facilities
available at Comfed headquarter are being utilized and some persons are
provided training at ERDTC, Siliguri, a NDDB managed training centre.
Around 80% of the total functional DCS are covered under this program.

Animal Health Program

Main activities under animal health (AH) program include prophylactic
vaccination, de-worming, mastitis control program, organization of
veterinary/infertility camps and treatment of veterinary first AIS cases.
Resume of different components of AH program is as follows
Prophylactic Vaccination

Around 2665 Veterinary First Aid (VFA) centers have been established which
do the vaccinations. Prophylactic inoculations are mainly done against Foot
&Mouth Disease (FMD), Hemorrhage Septicemia (HS), Black Quarter (BQ) and
Theileriosis diseases. During 2001-02, after initial trial, mass vaccination with
Trio-o-vac (combined FMD, HS and BQ vaccine) on the lines of Pulse Polio
vaccinations in children was taken up. During 2009-10 about 16.35 lakh
vaccinations have been done.

Mastitis Control Program

This program has been taken up with the technical assistance from NDDB.
Under this program, screening of milk animals is done using "Masticate". The
doubtful or sub-clinical cases are given treatment. Awareness amongst the
milk producers is created for disinfecting the udders and teats after milking
with a view to check the infection of animals. Milk unions provide necessary
disinfectant and treat cups to the milk producers on cost basis.

Deworming

Worm infestation in the milk animals affects the productivity adversely.

Hence, for improving the productivity and health of animals, de-worming with
broad-spectrum anthelmintics is arranged regularly by the milk unions.

Veterinary Camps

The milk unions organize veterinary camps where the milk producers
bring their animals for treatment.
Feed and Fodder

Since, seventy five to eighty percent of the cost of milk production depends on
the feeding of milk animals; this is very important affecting the economy of
dairying activity. Both green fodder and balanced cattle feed are required to
beefed in appropriate quantities for optimizing the output i.e. the production
and also to maintain the health of the animal. The farmers in select dairy co-
operative societies are being provided training through a computerized
nutrition balancing system with the help of National Dairy Development
Board.
Adult Cattle feed (ACF) and Bypass Protein Feed (BPF) is manufactured by our
cattle feed plants (CFP) located at Patna, Ranchi and Muzaffarpur. The total
installed capacity of these plants is 260 Metric Tons Per Day (MTD) The cattle
feed produced by these plants is supplied on cost basis to the farmers. Besides
manufacturing BPF and ACF, CFP Ranchi also manufactures other livestock
feeds to meet the requirement of Govt. farms in Bihar and Jharkhand. During
2009-10, the sale of cattle feed to DCS was 57.55 thousand Metric Tons.

Green fodder is equally important in animal nutrition. Besides providing

important nutrients, it helps in reducing the intake of balanced cattle feed and
in turn the cost of production. After prolonged extension work and
persuasion, the farmers have started not only the cultivation of different
fodders in their fields but have started the production of fodder seeds.
Another Important scheme under fodder development has been the treatment
of straw with urea, which not only increases the palatability of dry fodder but
increases its nutritional value also. Feeding of urea treated straw helps in
reducing the cost of production of milk. Farmers have now taken it up on
regular basis and during 2009-10 about 11613 MTs of straw has been treated.

Training / Manpower Development

Capacity building / skill up gradation has been given maximum emphasis in

implementing the dairy development program. This has been achieved
through regular training of milk producers, management committee members
(MCM) of DCS, staff of DCS / milk unions of Comfed. Training of milk
producers, DCS staff and MCM has been mainly arranged at the Comfed
training centre at Patna. Training programs organized at Comfed's training
centre include programs of Society Operation for Secretaries, Orientation of
MCM, AI & VFA training, Dairy Animal Management, and Legal Literacy &
Women Empowerment. Refresher courses and tailor made programs as per
need of milk unions is also organized.
Clean Milk Production

Besides creating awareness amongst the milk producers about importance of

clean milk production (CMP) program, efforts are made to install bulk coolers
and link the DCS covered under CMP with these bulk coolers. Other actions
taken include – Pre poning arrival time of milk vehicles at chilling centers /
dairy docks, use of Stainless Steel milk cans, sanitization of milk cans, vigorous
testing of adulterants etc.

Plant

Name of the Plant Capacity of the Plant Management

(TLPD)
Patna 150.0 VPMU
Barouni 200.0 BMU
Muzaffarpur 150.0 TMU
Samastipur 200.0 MMU
Aara 100.0 SMU
Jamshedpur 100.0 COMFED
Ranchi 100.0 COMFED
Bokaro 100.0 COMFED
Bhagalpur 25.0 COMFED
Gaya 35.0 COMFED
Purnia 10.0 BMU
Kaimur 10.0 SMU
Gopalganj 10.0 TMU
Total 1190.0
 Procurement

The milk procurement during 1994-95 averaged 114.32 thousand kg’s, per
day which jumped more than five times to around 608.38 TKPD in 2006-07
but the devastating floods in July-Sept 2007 and also during second half of
2008 had very severe effect on the production of milk and its procurement by
DCS. In 2008-09, it fell down to 415.36 TKPD but due to sustained efforts it
again picked up the momentum. The daily average milk procurement during
2011-12 was 1074.92 TKPD.
 Unit wise Milk Procurement (in ‘000 kgs per day)

Milk Union/
1887-88 1997-98 2003-04 2006-07 2010-11 2011-12
Unit
Barouni 20.57 65.93 135.00 173.69 333.08 314.12
Muzaffarpur 10.77 24.43 52.84 87.13 118.13 115.12
Samastipur 7.44 32.00 69.86 129.85 248.13 250.99
Patna 30.18 56.18 102.66 157.33 221.23 210.15
Shahabad - 8.77 29.99 45.41 123.75 129.44
Vikramshila 1.41 2.81 3.27 7.78 35.05 35.73
Gaya .68 .0.15 3.55 2.42 10.76 7.50
Kosi - - - - 6.29 7.13
Ranchi - 5.35 6.06 4.78 4.95 4.74
Total 71.05 213.19 403.00 608.38 1101.38 1074.92
Extra Curricular Activities Performed

By COMFED

COMFED (Sudha) performs many extra activities relating to their products

which can help the organization in his sale growth and advertisement
also. Sudha’s “Dahi Khao” contest is one of the examples of that thing.
The figure showing the contestants of Dahi Khao contest by COMFED
 RASHTRIYA KRISHI VIKAS YOJNA:

After crucial analysis of the situation, the state government, for the
development of diary area has prepared a diary road map for the year 2008-
12. In this plan emphasis will be made for the complete development of dairy
area.

1) Establishment of milk co-operative societies in villages which help the

farmers to sell their milk.

2) Improvement in the breed of milk animals so that the product of milk in

the state can increase and can reach to 172 MT per from 138 MT.

3) Improvement in the health of animals.

4) Increasing the capacity of dairy equipments.

5) Development of human resource at village level.

These plans are being implemented by all the units of COMFED. In 2009 and
2010 the state government has provided an amount of Rs. 27.59 crore and Rs.
21.39 crore respectively to COMFED for implementation of these plans. In
2010-11 Rs. 21.86 crore has been provided by the state government.

Due to the implementation of the dairy road map programme approx 1210
villages are being benefited. This has been possible due to establishment of
co-operative societies in these villages. Approx 112 farmers have got training
in this field. Under this programme there are 65 AI centers which provide
their services to five to six villages nearby. These centers are also helping in
improving the breed of milk animals.
 BIHAR GRAMIN JEEVIKOPARJAN YOJNA:

Bihar government with the help of financial assistance of World Bank has
started ‘Bihar Gramin Jeevikoparjan yojna’ to improve the living standard of
people residing in villages. The main objective of this programme is to raise
the living standard of women and other people of backward community by
dairying activities. This programme has also aimed to create awareness
among the villagers about their fundamental rights. For implementing this
plan self help groups are also formed.

COMFED is helping the members of this self help group in earning the
regular income by connecting them to the milk co-operative societies. For
this a plan has been prepared under which the three districts of Bihar i.e.
Muzaffarpur, Nalanda and Khagaria are targeted for implementation for this
plan.
 SWOT
.

Analysis of Sudha Dairy, Patna

Strengths:

•Demand profile:
Absolutely positive

•Availability of raw material:

Rich.

•Technical manpower:

Professionally-trained, technical human resource pool, built

over last 30 years.
Weaknesses:

•Lack of control over yield:

Theoretically, there is little control a little control over yield. However,

increased awareness of developments like embryo transplant,
artificial insemination and properly managed animal husbandry
practices will automatically lead to improvements in milk yield.

•Logistics of procurement:

Woes of bad roads and inadequate transportation facility make

milk procurement problematic. But with the overall economic
improvement in India, these problems would also get solved.

•Competition:

With so many newcomers entering this industry, competition is becoming

tougher day by day. But then competition has to be faced as a ground reality.
The market is large enough for many to carve out their niche.
Opportunities:

"Failure is never final, and success never ending”. Dr Kurien bears out this
statement perfectly, if dairy entrepreneurs are looking for opportunities in
India, the following areas must be tapped:

Value addition:

There is a phenomenal scope for innovations in product development,

packaging and presentation. Given below are potential areas of value addition:

o This will lead to a greater presence and flexibility in the market place
along with opportunities in the field of brand building.
o Addition of cultured products like yoghurt and cheese lend further
strength - both in terms of utilization of resources and presence in the
Market place.

o A lateral view opens up opportunities in milk proteins through casein,

caseinates and other dietary proteins, further opening up export
opportunities.

o Yet another aspect can be the addition of infant foods, geriatric

foods and nutritional.

Export potential:

Efforts to use export potential are already on.Opportunities will increase trem
endously for the export of agri- products in general and dairy products in
particular.

Threats:
 Milk vendors, the un-organized sector:

Today milk vendors are occupying the pride of place in the industry.
Organized dissemination of information about the harm that they are doing to
producers and consumers should see a steady decline in their importance.
 Abort the survey

Patna dairy project is the one of biggest milk and milk product supplier in Bihar.
Now a day’s Patna dairy product (Sudha product) is available in all over the Bihar
and reach the every type of customer of Bihar and some other selected area.

This survey is conducted for knowing the view of customer of Sudha and its
retailer.

In this survey, we have tried to know the view of customer and its retailer in
Patna with the help of different question.

Respondent profile

Of the 100 members surveyed, 100% of respondents are Sudha customer.

In this survey, we take important view of customer of every age group.

 Series 1

45
40
35
30 0<18

25 18<40

20 40<60

15 60<above

10
5
0
0<18 18<40 40<60 60<above

Survey Results:

1.Do you know Sudha ?

-yes
 -No

Our survey shows that Sudha product is very famous brand and known by every
person of patna. We are unable to find a single person who did not know about
Sudha and its product. It shows the reach of company to the customer and its
vision.

Do you know sudha?

120

100

80

60
Do you know sudha?

40

20

0
yes No
 2. Do you ever use Sudha milk and its product?

-yes

-No

Our survey shows that almost 100% of customer use Sudha milk or its product. It
happened just because Patna dairy produce different type of milk product. So it
cover the almost 100% of customer.

Do you ever use sudha milk and its

products?
120
100
80
60 Do you ever use sudha milk and
its products?
40
20
0
Yes No
 3. What will you grade Sudha milk and its product?

-5 star -2 star

-4star -3star

-2star -No stars

Our survey shows that 40% of customer gives 3stars grade, 30%of customer gives
4star grade, and 20% of customer gives 5star and 10% of customer gives 2star
grade.

what will you grade sudha milk and its

product?
45
40
35
30
25
what will you grade sudha milk
20
and its product?
15
10
5
0
5star 4star 3star 2star 1star No star

4. Which type of milk product do you like?

-Sudha healthy -Sudha cow milk

-Sudha Gold -Sudha shakti

 -Sudha Smart

We know that sudha is producing different type of milk according to the need of
customer and sudha milk and its product contain a different fat level.

Our survey shows that how many customer use different select product.

17% of customer use sudha healthy

25% of customer use sudha cow milk

45% of customer use sudha Gold milk

13% of customer use sudha Gold milk

Which type of milk product do you like?

50
45
40
35
30
25
Which type of milk product do
20 you like?
15
10
5
0
Sudha sudha cow sudha gold Sudha sudha
healthy milk shakti smart

5. What do you think about the price of Sudha milk and its products?

-Relevant -Irrelevant
Our survey shows that how many customers think that price of sudha milk and its
product is relevant or irrelevant.

Our survey shows that,

65% of customer of sudha thinks that price is irrelevant and

35% of customer of sudha thinks that price is irrelevant.

what do you think about the price of sudha

milk and its products?
70

60

50

40
what do you think about the
30 price of sudha milk and its
products?
20

10

0
Relevant Irrelevant

6. Do you feel that sudha milk and its products are not available in
market?

-Never -Rarely

Our survey shows that how many sudha customers feel that sudha product is not
available in market in any time.
Our survey shows that, 67% of customer voted to never and 33% of customer
voted to yes.

Do you feel that sudha milk and its products

are not available in market?

NEVER
RARELY

7. Do you ever pay excess amount for the Sudha milk and its product?

-Never -sometimes

-Rarely -Every time

Our survey shows that how many sudha customers feel that he/she ever pay
excess amount for the sudha product.

Our survey shows that, 37% of customer say never, 37% of customer say
sometimes, 11% of customer say rarely and 15% of customer say every time.

Do you ever pay excess amount for the sudha

milk and its product?
40

35

30

25
Do you ever pay excess amount
20
for the sudha milk and its
15 product?

10

0
Never Sometimes Rarely Every time

8. Do you have other options for the milk product?

-Yes -No

Our survey shows that sudha customer have any other options of milk product.

Our survey shows that, 30% of sudha customer says that he/she has option for
milk product and 70% of sudha customer says that he/she has not option for milk
product.
 Do you have other options for the milk
product?

YES
NO

9. Do you ever feel that trouble in buying Sudha milk and its product
during festive season?

-Never -sometimes

-Rarely -Every time

Our survey shows that how many feel trouble in buying sudha milk product in
during festive season.

9% of customer say never, 62% of customer say sometimes, 17% of customer say
rarely, and 12% of customer say every time.
 Do you ever feel that trouble in buying sudha
milk and its product?
70

60

50

40

30 Series 1

20

10

0
Never sometimes Rarely Every time

10. How familiar are you with Sudha milk and its product?

-use it on a regular basis -I am aware but have never

used it

-Use it only sometimes -never heard of it

87% of customer use it regular basis

13% of customer uses it only sometimes

 How familiar are you with sudha milk
and its product?
100
80
60
40
20 How familiar are you with
0 sudha milk and its product?
use it on a i am aware Use it only Never heard
regular but have sometimes of it
basis never used
it

12. How did you first about Sudha milk and its product?

-Sudha parlour -internet

-Pamphlets -News paper

-Wall ads -others

Our survey shows that 65% of customer knows about sudha from sudha parlour,
20% of customer know from News paper, 7% from wall ads, 4% from each
internet and pamphlets.
 How did you first about sudha milk and its
product?
70

60

50

40

30
How did you first about sudha
20 milk and its product?

10

13. What would you like to change about Sudha milk and its products?

-Packaging -Flavour

-Quality -Price

Our survey shows that,

45% of customer want do change in price

27% of customer want do change in quality

25% of customer want do change in packaging and 3% of want to change in

flavour.

-
 What would you like to change about sudha
milk and its products?
50
45
40
35
30
What would you like to change
25
about sudha milk and its
20 products?
15
10
5
0
Packaging Flavour Quality Price

14. Would you recommend Sudha milk and its product to a friend / associate?

-Definitely -Definitely not

-Probably -Every time

Our survey shows that , 52% of customer will recommend to friend, 37% of
customer will recommend probably , 7% of customer will not recommend , and
4% of customer will recommend every time.
 Would you recommend sudha milk and its
product to a friend / associate?
60

50

40
Would you recommend sudha
30
milk and its product to a
20 friend / associate?

10

0
Definetly Definetly not Probably Everytime

15. How often do you buy Sudha milk and its product?

- Once per week or more often -Once every 2-3 months

- 2-3 times per month -Once or twice a year

- Once per month -Not sure

Our survey shows that ,

75% of customer use it regular basis, 15% of customer use once every 2-3
months, 4% of customer use it 2-3 times per month, and 6% of customer not
sure.
 How often do you buy sudha milk and its
product?
80
70
60
50
40
30 How often do you buy sudha
20 milk and its product?
10
0
Once per Once 2-3 times Once or Once per Not sure
week or every 2-3 per twice a month
more months month year
often

16. How likely are you to buy Sudha milk and its product in future?

- Very likely -Not Sure

-Somewhat likely - Somewhat unlikely

- very unlikely

Our survey shows that,

52% of customer will buy /use sudha product in future

42% of customer voted to somewhat likely and

35% of customer voted to each not sure and very unlikely

 How Likely are you to buy sudha milk and its
product in future?
60

50

40

30 How Likely are you to buy

sudha milk and its product in
20 future?

10

0
Very likely Not Sure Somewhat Somewhat very
likely unlikely unlikely
Conclusion:
We know that sudha or Patna Dairy project is the one of the biggest and largest milk and milk
product producer in Bihar. Patna Dairy project or Sudha has reached to every part of our
society and customer. Patna Dairy project has large number of milk products so this helps to
reach the different type of customer. Patna Dairy project is one of the biggest brands in milk
product because its presence in the market in every time except peak season in festival.

Patna dairy project is doing excellent job in its field. But there are some problems
available in this field like packaging, quality, price, distribution, commission of retailer, No
return policy of sudha cool bottle.

Packaging:
Our survey shows that, there is problem with packaging of sudha milk product. During the
survey we found a lots of leakage cases in sudha milk product.

In our survey, we found that in average 2 packet milk is leak in 100 kg packet (daily) so it
creates bad impression on retail and customer.

It also create problem in profit margin of retailer.

Quality:
Our survey shows that, there is also in problem in quality of sudha milk. During the survey we
found lots of cases of milk phatna and smell in milk product in same day product.

But we found these type maximum cases of students and poor people or customer because
they cannot afford refrigerator.

Other reason of milk phatna is mishandling of milk and pot.

Price:
Our survey shows that, 65% of customer said that price of sudha milk and its product is relevant
and 35% of customer thinks that price is irrelevant.

According the survey we can say that there is no major problem in pricing of sudha milk and its
product.
Distribution:
Our survey shows that, there is some problem in distribution system of sudha milk product.

1) Supply is very irregular and not reaches on time, specially in evening time.
2) Some time supply is provided according to the demand

Commission of retailer:
Our survey shows that, commission of retailer is decided by patna dairy. Which is 1.10 rupees in
one litre of milk and other commission on other product is different.

We want to say that, If milk pack get leak or bad quality than it reduce the profit margin of
retailer.

No return policy of sudha cool bottle:

Sudha is producing a sudha cool drink which is very good in quality and taste. But there is no
return policy of sudha cool bottle.

There are some drawbacks in no return policy of sudha cool bottle.

1) It creates extra budget in production

2) Reduces profit of company
3) Create extra Air pollution
4) Extra use of natural resources

There are benefits of use return policy of sudha cool bottle

1) It will reduce the budget of production

2) Increase the profit of company
3) Reduce the air pollution
4) Reduce the use of natural resources
NAME……………………………………………………………… AGE:……………………………………

1. Do you know Sudha?

 Yes
 No

2. Do you ever use Sudha milk and its product?

 Yes
 No

3. What will you grade sudha milk and its product?

 5 star  2 star
 4 star  1 star
 3 star  No stars

4. Which type of milk (segment) product do you like ?

 Sudha healthy
 Sudha Cow milk
 Sudha Gold
 Sudha Shakti
 Sudha Smart

5. What do you think about the price of sudha milk and its products?

 Relevant  Irrelevant

6. Do you feel that sudha milk and its products are not available in market?

 Never  Rarely

7. Do you ever pay excess amount for the sudha milk and its product?

 Never  Sometimes
 Rarely  Every time

8. Do you have other options for the milk product?

 Yes
 No
 If Other (Specify Name) __________________

9. Do you ever feel trouble in buying sudha milk and its product during festive seasons?

 Never  Sometimes
 Rarely  Every time

10. How familiar are you with sudha milk and its product?

 Use it on a regular basis  I am aware but have never used it

 Use it only sometimes  Never heard of it

11. Which of these sudha milk and its product have you used?

 Sudha Healthy  Sudha Shakti

 Sudha Cow milk  Sudha Smart
 Sudha Gold  Others

12. How did you first hear about sudha milk and its product?

 Sudha parlour  Internet

 Pamphlets  News Paper
 Wall ads  Others (Name it……………………………………..)

13. What would you like to change about sudha milk and its products?

 Packaging  Flavour
 Quality  Price

14. Would you recommend sudha milk and its product to a friend/ associate?

 Definetly  Definitely not

 Probably  Every time

15. How often do you buy sudha milk and its product?

 Once per week or more often  Once every 2-3 months

 2-3 times per month  Once or twice a year
 Once per month  Not sure
16. How likely are you to buy sudha milk and its product in future?

 Very likely  not sure

 Somewhat likely  Somewhat likely
 Very unlikely
  FINDINGS OF THE STUDY

 Out of the two types of Sudha milk, standard milk is more sold by the
retailers and is more preferred by the customers.

 35% of the retailers are facing the problem of shortages.

 Out of the two milk packets, full liters milk packets are mostly sold by the
retailers.

 52% of the retailers have to face complaints from the customers.

 Majority of the retailer’s i.e. 78% of them are satisfied as being a part of
Sudha diary.

 Majority of retailers are satisfied with the margin of Sudha dairy.

 Sudha milk has captured majority of the market share of processed milk in
Patna. It is the market leader having 92% market share.

 65% of customer uses Sudha milk for drinking.

 Majority of the customers (65%) are satisfied with the Sudha milk and
don’t have major complaints.

 Majority of customer prefer Sudha milk because of its quality, taste and
abundance.

 42% of customer prefers fat milk.

 36% of the customers have to face from the problem of shortages,.

 64% of the customers are satisfied with our delivery system.


 27% of customers want cow milk from Sudha dairy.

 Till now, the companies have been able to maintain a healthy relation at
both level (External and Internal).

 It is lacking behind in remote areas.

 There are some cases of leakage of milk from packet 
 SUGGESTIONS

After an analysis of the findings of survey I feel that there are some strength
which the company can work on and some drawback which can remove:-

1) Patna dairy should give notice to every retailers and distributers about
how to preserve and guide them for the proper maintenance of the milk.

2) As we know Sudha is already a renowned dairy company which leads

the market, but unlikely the main competitors of Sudha milk are khatalwale,
so Patna dairy should use silent marketing. Patna dairy should recruit 4
persons whose role is to distribute pamphlets displaying what they are taking
to the customers when they return after taking their milk from khatal.

3) The company should take steps to provide closer interactions with the
retailers who feel that greater patronage is given to the wholesalers. For this I
would suggest regular retailers meet and attractive incentives schemes
targeted to them.

4) Majority of retailers has complained of getting defective packet. Patna

dairy should improve packaging process and provide replacement facilities of
defective packets.

5) Patna dairy has a relatively good distribution network, but still

company is not able to fulfil the demand outlet in the peak season and during
flood. Here company should consider on the supply of product in the peak
season and during flood.

6) Patna dairy should increase the margin 15% to 20% on the Sudha milk,
which will increase the motivation level of the retailers.
7) Patna dairy should improve the quality of toned milk.
8) Patna dairy should advertise about the products to make them aware to the
customers by providing display board, banner to their outlets and using other means of
advertisement.

9) Patna dairy should make a powerful team for taking a action on improper
transportation of sudha milk.
 CONCLUSION

Taken as a whole the company does seem to have good share of the retail market

but it does not appear to have reached its full potential. Periodic market surveys

to study market conditions, customers changing taste, marketing network and the

competitive environment would help greatly in strengthening the presence of the

company.

I sincerely hope that my findings and suggestions may somehow prove useful to

the company and it continues to go from strength to strength.

I express my thanks to Miss vandana (Marketing officer), all other staffs who encouraged
and help me in conducting the survey and compiling the information.
Any complain or suggestion regarding this reports
you / anyone can send to me.
I am assuring that, I will reply on any complain or
suggestion.

Your advice is very important.

Name: Durgesh Nandan Sahay

Email id: durgeshnsahay@gmail.com