Professional Documents
Culture Documents
With Specialization
In
Marketing
Submitted by
Suresh Babu .P
This is to certify that the dissertation work titled Organisational Study & Marketing
a candidate for the award of Master Program for Business Administration of Indian
The satisfaction and euphoria that accompany the successful completion of any task would be
incomplete without mentioning of the people who made it possible. So with gratitude I
acknowledge who served as an “inspiration” and my efforts with success.
I am also indebted to contribution of all the employees of Dharwad Milk Union in extending
their support and co-operation giving shape to my project study.
I extend my sincere thanks to my internal guide Rohit .C. Kalaskar, Secretary General
Academic Director who guided me throughout the project and kind and co-operative during
my training period.
I am greatly thankful to Indian Institute of Business Management, Pune for giving practical
knowledge about the industrial sector by including this Major Concurrent Project for four
months as a part of curriculum in the MBA course.
Suresh Babu .
CONTENTS
Research Design
Chapter 6 Data analysis and interpretations using various charts and 47-58
graphs
Chapter 7 Findings 59-59
The project is three different stages. The objective of undertaking this project i.e. phase first is
“To find out the requirements in the area of respective retailers” and “To work for expansion
of retail distribution network” for implementation of a value driven retail chain for effective
linkage between consumer and organization and to give suggestions for further improvement.
This is the project has been completed with the help of primary data. A survey has been
conducted to know that how the Distribution Network working and what are the problems
being faced in distribution.
As per objective I have find out the possible ways to improve the efficiency and effectiveness
of distribution network. I found that there are some problems such as Lack of retail outlets,
Supply problems, improper supervision, which have to be improved and rectified and hence
we have proposed some recommendations also. The objective of second part is to know the
relationship of sales with the advertisement & to know awareness of people towards new
Nandini Milk and milk products Ad by marketing survey i.e.post Ad tracking focusing three
segments (youth, children & house wives)
The objective of third phase is to promoting of the nandini milk in Hubli City. As a part of
our recommendation, I have proposed about maintaining product quality according to the
sales. Reason for selecting dealers of Hubli as my respondents is because Dealers of these
places play as the major purchaser of various varieties of products of the company. The
information required to gain insights regarding the Sales promotion activities these are the
best available sources
Chapter 2:- TITLE OF THE PROJECT; Organisational Study & Marketing
Distribution Channels towards Karnataka Milk Federation (KMF)
➢ To discover the various factors which hurdles people to take nandini milk.
The research study will help to identify & analyzing the dealers and customers perception
towards the existing products of the company and the promotional activities undertaken by the
organizations situated at Dharwad.
The first dairy in Karnataka is started in Kudige in Kodagu district in 1955. Nandini milk
product project is initially a government of India project established on 1st April 1973 and
handed over to the Government of Karnataka constituted by KDDC (Karnataka Dairy
Development Corporation) Further in June 1974; an integrated project is launched in
Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to
arrange foundation for a new direction in dairy development.
In 1975, the World Bank aided dairy development was initiated. The present
Karnataka Milk Federation (KMF) came into existence in 1984-as a result of merging of
Karnataka Dairy Development Co-operation, small co-operatives and Karnataka Milk
Production Development and loose vendors. At the end of the March 1998, the network of
8023 Diary Co-operative Societies (DCS) have been established which are spread over 166
taluks of the total 175 taluks in all 27 districts of Karnataka. There are 13 Milk Unions and
Dharwad Milk Union (DMU) is one among them.
Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the apex Body in
Karnataka representing Dairy Cooperatives. It is the third largest dairy co-operative amongst
the dairy cooperatives in the country.
Units of KMF:
KMF has the following units function directly under its control:
• Mother Dairy, Yelahanka, Bangalore
• Nandini Milk Products, KMF, Bangalore
• Cattle Feed Plants at Rajakunte / Dharwad/ Hassan
• Nandini Sperm Station at Hessaraghatta
• Pouch film plant at Munnekolalu, Marathahalli
• Central Training Institution at KMF Complex, Bangalore.
• Quality control lab at KMF Complex, Bangalore.
Achievements:
1) Bangalore Milk Union, Dakshina Kannada Milk Union and Mother dairy have
obtain ISO 9001-2000
2) 92% of functioning milk producers co-operative societies earning profit
3) At present on average of Rs. 205 lakhs is paid per day to milk producers
4) Establishment of ice cream plant of capacity 3000 LPD at a cost of Rs. 3 crores
which is being expanded.
5) Establishment of milk powder plant at Mother dairy of 30 MT’s capacity per day
at a cost of Rs. 22 crores.
ORGANISATION STRUCTURE
CHAIRMAN
M.D. KMF
Director Director Director Director Director Add’al
Add’al
HRD Anl Hus- Marketing STEP DDIL Director
Director
bandry Qty. Control
R&D
MD Bangalore MD Mandya
MD Belgaum MD Mysore
MD Bijapur MD Bellary
MD Dakshina Kannada MD Shimoga
MD Dharwad MD Tumkur
MD Gulbarga
MD Hassan
MD Kolar
DEPARTMENTS
HUMAN RESOURCE MANAGEMENT
Director (CHRM)
Steno
Secretary
Assistant Director
Superintendent
Superintendent
Translator
Administrative Asst I
Senior Typist
Administrative Asst. II
Attenders
Introduction:
Human Resource Management is a part of management. This part is concerned with
the people and their relationship within an organization.
Definition:
It’s the field of management which has to do with planning, organizing, directing and
controlling the functions of procuring, developing, maintaining and utilizing the labour force.
Objectives:
Objectives are pre-determined goals to which individual or group activity in an
organization is directed.
The objectives are:
1) To employ the skills and abilities of the work force efficiently.
2) To provide the organization with well trained and well motivated employees.
3) To increase the employees satisfaction and self-actualization to the complete
extent.
4) To develop and maintain a quality of work life.
Functions:
1) Assessing and recruiting staff based on the needs specified by the department.
Recruitment:
In KMF recruitment is according to the pre determined procedures. Usually they prefer
internal recruitment for top level. In few situations they feel that they need fresh blood they go
for external recruitment. They usually advertise in newspapers.
Selection:
Even the process of selection has to be performed according to the rules and
regulations pre defined. For every 1 vacant post they select 10 candidates from the available
pool of recruitment candidates for the final selection. These 10 candidates are selected by
mainly two tests:
a) Qualifying Test
b) Written Test
After the candidates cross the 2 tests the best 10 candidates for each post are selected
and sent for the final interview which is an oral interview. In the final interview the required
candidates are selected.
Employee Remuneration:
The remuneration for the employee is fixed earlier and all the employees have to abide
to it. This payment increases as their period of service rendered to the federation increases,
that is pay of an employee depends on the number of years he serves the federation.
Incentive Payments:
Employees are paid bonus once in every year depending on profits done on festive
season.
Employee Welfare
KMF has implemented many methods to help the employee’s. The employees are
given:
a. Pension Scheme
b. Group gratuity Scheme
c. Group Personal Accident Insurance
d. Group Insurance Scheme (death of the employee his nominee will be benefited).
Trade Unions:
KMF does have few trade unions. But none of them are having recognized by the
federation.
Disputes and their Resolution:
KMF has never faced any problems with the trade unions. Whenever any person of the
union approaches the management care is taken to see through that their problem is heard and
solved.
Director
Additional Director
Teaching/supporting
Staff
Introduction:
It is a unit of KMF came into existence from 1st January 1985 is a nucleus-training
centre. CTI is also imparting training in dairy animal management. To women sponsored by
Karnataka State Women Development co-operation Ltd.
Objectives:
The objectives of its is to import training in different fields of activity to the milk
produces who are members of the primary dairy co-operation societies and to the employees
of the members of milk unions and KMF and also the staff and representatives of allied govt.
depot.
The objectives are:
Mode of Training:
Facilities:
Conference Hall:
The institute has a spacious conference hall, which can accommodate 60 candidates.
The hall is equipped with a glass board and has facilities for using all the audio-visual aids.
Class Room:
In addition to the conference hall there are 2 classrooms, which have a capacity of
accommodating 25 candidates and have facilities for use of all the audio-visual aids
Canteen:
A fully equipped canteen facility exclusively for the purpose of the trainers residing at
the hostel
Transportation:
The institution has 2 mini buses and a jeep for transport of the trainees for visits to
institutions for in plant exposure training.
Recreation:
There are outdoor games like shuttle court and volley ball court and indoor games like
carom and chess.
Accommodation:
The institution has a hostel that can accommodate 80 trainees at a time. The rooms are
available on train sharing be basis
Hierarchy:
Grade II
Senior Typist
Introduction:
Management Information system is used to transform data into useful inf. as needed to
support managerial decision making with structured decisions, which are based on predictable
patterns of activities.
It is a network of communication channels and information processing centre-
collecting information from its respective milk unions and milk units
Objectives:
Functions:
FINANCIAL MANAGEMENT
Joint Director
Deputy Director
Assistant Director
Superintendent
Accountant Assistant
Grade - I
Grade - II
Grade – III
Introduction:
Finance is the lifeblood of business. Financial Management is that managerial activity
which is concerned with the planning and controlling of the firms financial resources.
Definition:
It is defined as “Planning, organizing, direction and control of financial resources with
the objectives of ensuring optimum utilization of such resources and providing insurance
against through financial deadlock”.
Objectives:
The objectives of KMF are:
• Control the finance
• Minimization of the expenditure
• Providing services to the member milk unions and its societies and in the process
making profit.
“No Organization can survive without Profit”.
Though the objective of the federation is not to make absolute profit, the profits are
incidental to the business.
Functions:
The functions of raising funds, investing them in assets and distributing returns
earned from assets to shareholders are respectively known as financing:
• Co-ordination with units and member milk union for easy flow of funds.
• Monitoring of funds and investment of surplus funds generated on account of
operational profits.
• Passing of all bills like suppliers bills, transportation. Allowance / medical claims
and miscellaneous bills in respect of central office.
• Coordinating with member milk unions for providing funds and payment of supply
bills in time to avoid cash crunch at the milk unions.
Income:
Sales 17 2330688398.13 1983249328.27
Inter Unit Transfers 18 265138182.44 316843285.80
Closing stock 19 137597140.37 168775053.39
Purchase Department
Introduction:
Purchase department is also called as “Integrated Materials Management”. It mainly
contains buying of raw materials, inventory planning, and store keeping and material
planning.
Objectives:
Reduce purchase cost by proper evaluation of vendor (Supplier) by buying the right
material at the right time for the cost with the right supply schedule adherence.
a. Minimize inventory-carrying cost.
b. To reduce ordering cost.
c. Cost reductions checking for economies to profits in buying.
d. Reduce material handling cost.
e. To utilize the input to the most optimum level.
Functions:
1) Purchasing department in central office will purchase bulk materials with buying
value exceeding Rs. 1,00,000 through tenders.
2) 21 items which come under KMF central purchase committee these are mainly the
packing materials, containers and other requirements of pouch film plant.
3) Cattle Feed Raw Materials (CFRM) is mineral mixture items. This mainly
comprises of Rice Bran, Grains, de-oiled cake extraction.
Purchase Process:
Process involved in purchase of raw material. is given below:
Quotation includes price of the material, validity of the offer, dispatch time, payment
mode of delivery.
There are many methods to manage inventory, they are:
a) Always Best Control analysis
b) FSL
c) Economic Order Quantity
d) First In First Out
e) Last In First Out
f) Just In Time
QUALITY - CONTROL
Introduction:
This division is at apex federation aims at not only controlling the quality but also
development of quality standards from time to time for milk and milk products manufactured
under the brand name “Nandini”. All these products pass through quality standards. The
standards meet the latest quality parameters.
They are responsible for inspecting the quality of raw material used, processing
parameters followed and quality of final products.
Activities
Marketing Management
Director
Sr. Deputy Sr. Deputy Sr. Deputy Deputy Director Asst.
Director
Director Director Director Public Ultra
Retail Bulk Relations High temperature
Field Sales Field Sales Field Sales Field Sal Field Sales
Representative Representative. Representative Representative.
Bangalore Hubli Tirupathi Mangalore
Introduction:
Marketing starts with the determination of consumer wants and ends with the
satisfaction of those wants.
It is the central activity of the business, which always focuses on understanding the
needs of the consumer. It stimulates the demand for a federation product.
Definition:
Marketing is the process of planning and executing the conceptions, Pricing,
promotions and distribution of ideas, goods and services to create exchanges that satisfy
individual and organizational objectives.
Objective:
The objectives of KMF are as follows:
• Provide quality milk to urban consumers
• To build village level institutions in co-operative sector to manage the dairy
activities.
• Provide assured and remunerative market for the milk produced by the farmer
members
• To ensure provision of milk produced input processing facilities and dissemination
of know how.
Functions:
The functions of KMF are:
• Market the surplus milk and milk products
• Milk products that are marketed in the marketing system of KMF are skim milk
powder butter and ghee.
• KMF marketing department within itself has made certain divisions for which a
deputy director or an assistant director is been made to look after the division.
• His work is to look after the works to be performed regarding his division by
discussing with his senior officials.
Consumers
b) Retail Sale Division:
This division function is to market the sales of milk produced in retail division.
c) Bulk Sale Division:
This division function is to sell the milk products left after fulfilling the products
for retail sales.
For pricing the products in case of bulk sales a small sub-committee meeting will
be held every week and prices are fixed.
d) Advertisement and Mass Media Division:
This division performs advertising the milk and the milk products to make its
publicity.
The different modes used for advertisement are:
Electronic Media, Wall Media, Print Media, Charts Explaining the products, All
India Radio
Milk and its products are sold under ‘Nandini’ brand name, which has become
household name in Karnataka. ‘Nandini’ brand has 35 members of product ranges in its
family. The milk unions are permitted to market the products within their jurisdiction through
their milk agents / parlors
The federation distributes the products of milk unions by establishing network and
sales depots in Bangalore, Hubli, Mangalore and Tirupathi comprising of 110 wholesale
dealers spread across, Karnataka, Andhra Pradesh, Tamil Nadu states of India and catering
around 20,000 retail outlets once a week.
Distribution - introduction
Distribution (or "Place") is the fourth traditional element of the marketing mix. The other
three are Product, Price and Promotion.
Institutions
Consumers Hospitals
Retailing
Retail positioning
There are several ways in which retail stores can position themselves. One strategy
involves low-cost, low-service. On the opposite side of the spectrum, others may offer
high-cost-high-service. Generally, having a clear strategy and position tends to be more
effective since "average" stores tend to face a greater scope of competition
Margins
Stores need to maximize their profits and must consider their margins to do so. Gross
margins generally reflect the difference between what a store pays the retailer and what it
charges the customer. On the average, this difference in supermarkets is about 25%.
(Although there are large differences between product categories, as an illustration, a can
that sold for 1.00 might have been bought on wholesale for 0.75). Net margins, in contrast,
take into account the allocated costs of running the store—wages, rent, utilities, insurance,
and "shrinkage." In grocery stores, these margins are usually less than 5%. Margins can be
considered at the unit level—you make 0.35 on a package of salt—or as a percentage of
sales—35% if the salt sold for 1.00. Sometimes, it may also be useful to consider margins
per unit of space to best allocate retail space to different categories.
There are two theoretical forms of retailing. The "High-Low" method involves selling
products at high prices most of the time but occasionally having significant sales. In
contrast, the "everyday low price" (EDLP) strategy involves lower prices all the time but
no sales. In practice, there are few if any EDLP stores—most stores put a large amount of
merchandise on sale much of the time. It has been found that offering lower everyday
prices requires a very large increase in sales volume to be profitable.
Retailing polarity
A number of retailers have tended to go to one extreme or the other—either toward a great
emphasis on price or a move toward higher service. Rapid economic growth has made
high service retailers more attractive to a growing number of affluent consumers and less
affluent consumers have become more accustomed to intense price competition between
different retailers.
Distribution opportunities
First of all, we must consider what is realistically available to each firm. A small
manufacturer of potato chips would like to be available in grocery stores nationally, but
this may not be realistic. We need to consider, then, both who will be willing to carry our
products and whom we would actually like to carry them. In general, for convenience
products, intense distribution is desirable, but only brands that have a certain amount of
power—e.g., an established brand name—can hope to gain national intense distribution.
Note that for convenience goods, intense distribution is less likely to harm the brand
image—it is not a problem, for example, for Haagen Dazs to be available in a convenience
store along with bargain brands—it is expected that people will not travel much for these
products, so they should be available anywhere the consumer demands them. However, in
the category of shopping goods, having Rolex watches sold in discount stores would be
undesirable—here, consumers do travel, and goods are evaluated by customers to some
extent based on the surrounding merchandise.
The product life cycle
In general, a brand can expect lesser distribution in its early stages—fewer retailers are
motivated to carry it. Similarly, when a product category is new, it will be available in
fewer stores—e.g., in the early days, computer disks were available only in specialty
stores, but now they can be found in supermarkets and convenience stores as well. Certain
products that are not well established may have to get their start on "infomercials," only
slowly getting entry into other types out outlets. (Please see PowerPoint chart).
SWOT Analysis:
Strengths:
1) The network and the cooperation between all the 13 co-operation units are very
strong.
2) The production of milk product and milk satisfies the consumer need in both price
and quality.
3) Monitoring the quality of milk and milk products of the unions so, nobody can
dissatisfy the consumer.
4) Regularly attending the customer complains
5) Most important is the trust of people on KMF
Weakness:
1) The company should pay attention to its advertising and strategy though Nandini
milk has a monopoly market.
2) Lack of employees in the quality control department
Opportunities:
1) Since KMF is the 3rd largest milk union and biggest in south India, so it has an
opportunity to enter into international market.
2) It is already making different milk products and also has a good infrastructure and
it is a well known brand so it can go for other more milk products.
Threats:
1) Consumer increasingly expects high quality and service. They perceive fewer real
products difference and show less brand loyalty.
2) Customers are also showing greater price sensitivity.
Vision:
1) To march forward with a missionary zeal which will make KMF a trailblazer of
exemplary performance and achievements beckoning other milk federation in the
country in pursuit of total emulation of its good deeds
2) To ensure prosperity of the rural milk producers who are ultimate owners of the
federation.
Nandini milk and milk Products
ICE CREAM
Nutritious, delicious creamy ice cream is
manufactured at ISO 9002/HACCP certified Mother
Dairy modern plant. The range includes Vanilla,
Strawberry, Pineapple, Mango, Chocolate, Butter
scotch, Kesar Pista, Orange & Mango Candies,
Mango & Raspberry Dollies, Chocobar and Ball
varieties Vanilla, Strawberry, Sundae.
BADAM POWDER
KHOVA
CHEESE
MILK POWDER
Enjoy the taste of pure milk! Skimmed milk powder
made from pure milk, processed and packed
hygienically.
ASHEW BURFI
NANDINI BITE
SMART
SLIM
BUTTER MILK
CURD
GHEE
MYSORE PAK
PEDA
PANEER
BUTTER
If one wants to know what type of people use milk, what they think of, television
commercials, or why they buy particular brands of milk, the natural procedure is to ask them.
Thus, the questionnaire method has come to be the more widely used of the two data
collection method. Many consumers are now familiar with the “We are making a survey”, and
then proceeds to ask a series of questions. Some interviews are conducted in person, others by
telephone, and others by mail. Each of these has its special advantages and disadvantages and
limitations. The questionnaire method in general, however, has a number of pervasive
advantages and disadvantages. Discussion of particular variations will be more meaningful if
these characteristics of the general methods are brought out first.
A questionnaire consists of list of questions to be asked from the respondents and the space
provided to record the answer / responses. Questionnaire can be used for the personal
interviews, focus groups, interviews. The choice among these alternatives is largely
determined by the type of information to be obtained and by the type of respondents from
whom it is to be obtained. The common factor in all varieties of the questionnaire method is
this reliance on verbal responses to question, written or oral.
Questions of this type offer the respondents an alternative to choose the right answer
among others. It is faster, time saving and less biased. It also simplifies the tabulating
process
In this type respondents are free to answer in their words and express the ideas they
think are relevant, such questions are good as first questions or opening questions.
They introduce the subject and obtain general reaction.
Chapter 5:- RESEARCH METHODOLOGY
SAMPLE DESIGN
SAMPLE UNIT: - All working people are included both the genders i.e. males and females
irrespective of their education level.
SAMPLE SIZE: -
Customers – 80
Retailers - 20
PRIMARY DATA
Primary data is collected through a self administrated questionnaire. This questionnaire aims
to gather information related to various milk brands
SECONDARY DATA
Secondary data is collected through magazines, research papers, internet etc.
Data collection
Questionnaire design
As the questionnaire is self administrated one, the survey is kept simple and user friendly.
Words used in questionnaire are readily understandable to all respondent. Also technical
jargons are avoided to ensure that there is no confusion for respondents.
The study of opportunity for milk companies in the market is a sum total of different
analytical survey of different milk companies in the Hubli area. In one sense, we can say that
it is determination of how much market captured by different milk companies
Changing lifestyles
Rising per capital income, increased literacy and fast urbanization have caused fast growth
and change in demand patterns. The rising aspiration levels, increase in spending power has
led to a change in the consumption pattern.
This geographical area is concerned to the where I conducted serve to analyze which is the
best milk brand in the Hubli city’s.
I conducted serve in the serve in Hubli City areas like Gokul road, CBT, Aruna colony,
Navanagar, Maruti Nagar, Sirur park circle, Desh pandye nagar, and Akshay Park, Lingaraj
nagar etc.
Chapter 6:- Data analysis and interpretations using various charts and
graphs
Retailers
Customers
Findings
Retailers
These are the question which denotes the nandini whole and sole picture about its product and
its quality as well as services provided by nandini and its distributors.
➢ According to my findings in survey area there are 96% of retailer are fully satisfied
with the quality of products and remaining 4% retailers are not satisfied with the
quality of the product.
➢ There are 76% retailers who are satisfied with the quality services provided by the
distributors but there are 24% of the retailers who are not satisfied with the services
provided by the distributors
➢ Customer are demanding Nandini product but there are no distributor provided to
some shop, so they have to sale other brand.
➢ Sometimes distributor delivers product when exp date comes to close.
➢ This retailer wants to sale nandini product but there is no distributor them.
➢ Replacement is not done if product rotten.
➢ According to my findings in survey area there are 86% retailers who are satisfied with
the way the product are being delivered by distributors but there are 14% retailer who
are not satisfied with the way the product are delivered to them.
➢ The company needs to have a constant touch and communication with the consumers
and continuously needs. To get feedback from them and make necessary arrangements
and corrections to cater the needs of customers.
➢ In many areas there are no Nandini parlors, or dairy. Counters etc., it is better to open
the counters or parlors, in order to provide milk to the consumers to provide for
availability of Nandini products, in all areas.
I concluded that nandini has a very good image in the eye of its customer,
has a very good brand name. But one thing I come to know that its distribution channels in not
good in some wards and because of which retailers has to face many problem.
I also saw that the price of nandini product is high as compare to its
competitor product and hence nandini competitors are able to attract consumer towards their
product.
Another thing is that nandini don’t give the replacement offers to the retailers
and because of which retailers are very much dissatisfied.
Appendix
Copies of questionnaire
Copies of form(s)
From the company
Bibliography
Q.no.1: Do you know about Nandini Brand Milk and Milk products?
(a) Advertising in print media (b) Advertising in television media (c) Shopkeeper
(a) 3 liters (b) 2 liters (c) 1 liters (d) 500ml (e) 200ml
A: If yes because of (a) Quality (b) Price (c) Taste (d) Thickness (e) Availability
(a) Standard milk (b) Full cream milk (c) Toned Milk (d) Loose Milk
RETAILER SURVEY
Name of the shop ___________________________
Address ___________________________
Telephone No . ___________________________
Q.no.1: What are the milks you usually keep in your shop?
a) Yes b) No
a) Good b) Bad
Thank
You
Bibliography
1) Text books
→ Suja.R.nair
Marketing Research
→ K. Ashwathappa
Marketing management
→ Philip Kotler
Marketing management
→ Rajan Saxena
3) Internet
www.Google.co.in
www.kmf.com