CHAPTER-1 INTRODUCTION TO RESEARCH:-

INTRODUCTION TO RESEARCH:-

The vast milk market in Pune is attracting more and more new milk brands and this has increased the competition in the market .Due to huge competition, the importance of the promotional activities has increased tremendously. The company needs to formulate and implement an effective promotional activity so that it can survive in the market. So by undergoing this study If can help the company to know the competition and their promotional strategies and effectiveness of the promotional activities of Govind Dairy product that the consumer need. In our two months research I analyzed various promotional activities conducted by Govind Dairy product in Pune after its successful launch of its three variants of milk in the city. The distributor and the retailers network that the marketing team of Govind Dairy has set up within a few span of time in Pune city was studied by me.

CHAPTER-2 EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
3

The promotion was carried out to promote the newly launched milk product of Govind Dairy in Pune city under three variants. The company having its marketing network all over the world has developed and positioned its products against the quality of the products So I conducted a post launch study of the promotional activities conducted by Govind Dairy and its effectiveness in Pune market and to understand the customers expectations from the company. My primary task was to develop a research methodology to analyze promotional activities for that purpose I used descriptive research which includes primary and secondary data. The company had adopted various promotional activities for its milk in Pune city which were detailed studied and analyzed under this project. The location selected was restricted to a smaller area in Pune city. 120 was my sample size which was selected by simple random sampling. The primary data was collected through interviews and questionnaire while secondary data was collected from magazines, newspapers, internet and company office itself. Govind Dairy conducted various promotional activities in the market such as free sample distribution, exclusive counter schemes, coupons etc. The activities conducted all over the city were studied deeply and the effect on selling was analyzed thus the distributors and retailers were interviewed and the effect of sales promotion activities was predicted from the answers given by them. Retailers were asked for satisfaction about the sales and the quality of the product as well as the companys schemes. Through data analysis I observed that there is cut throat competition t in the market. Chitale, the market leader followed by Amul and Katraj are the major competitors of Govind Dairy in this market. is good start after launch in Pune has acquired a good market share but yet many customers are unaware about the brand .this highlights that there are some constraints in the promotional activities of Govind Dairy.

Promotional activities should appeal end consumer and should create a brand loyalty towards a product, company should emphasis on the freshness and quality of milk along with the state of art facilities used for processing and packing of milk.

CHAPTER -3 OBJECTIVE AND SCOPE OF STUDY

OBJECTIVES OF THE PROJECT

The project was undertaken with a prime objective to understand the practical aspects of sales promotion carried out for the milk products. This project has primary and secondary objectives which are stated as under.

Primary Objective: To study the promotional activities of Govind Dairy and its effect on sales in market. To study the satisfaction level & psychology of retailers for promotional activities To develop market for Govind Dairy milk in Pune city.

Secondary Objective: To determine what type of promotional activities other companies conduct for retailers to boost up the sale. To get an exposure of real market situation where we can implement theoretical knowledge in practical manner.
To know the views of customers on the newly launched products of the company. To increase the awareness of Govind Dairy milk in Pune city.

SCOPE OF STUDY
This study helps to understand the sales promotion policies used by Govind Dairy for marketing of milk in market with the profitability. The study will help the management of Mother Dairy in forming the future policies regarding sales promotion strategy. It will help to study that how customer respond to promotional activities. It will also helpful to identify loyal customers.

CHAPTER -4 COMPANY PROFILE

HISTORY OF THE ORGANIZATION

9

Govind milk and milk products is established in the year sep 1997 in room of Agriculture High School at phaltan to upliftment of the farmers of Phaltan Taluka. The company is located in Phaltan Dist. Satara, in Maharashtra state, covering three acres of land in clean surroundings free from pollution. The Dairy plant is located 280 Kms. from Mumbai and 110 Kms. from Pune city by the Pune Pandharpur road. The Dairy has since grown from a merger milk collection of 250 liters. And within short period the milk collection reaches up to 5000 lit per day.Within the due course of time the company was shifted to its present location which covers an area of one acre. At today the daily milk collection is 2,50,000 lit. Per day .

Products and Technology

The Company is involved in the business of milk processing. The raw milk is collected from the villages covering the area of 50 Kms. The milk processing unit is well equipped with pasteuriser and homogeniser. The pasteurised and homogenized milk pouch filled and sent in the markets of Pune, Satara and Mumbai city. Also the part of the milk is sent in bulk quantity to Mumbai, Kolhapur, Goa and Karnataka directly and through various trading agencies. Govind Dairy ensures the quality standards. The technology is absolutely with most of the equipment sourced from the best in the Dairy industry. We have highly qualified technical staff that maintains the quality and hygiene of milk and milk products. The advanced machinery is purchased from Alfa Laval, APV Gavlin, Nichrome & Kirloskar, which are well known international companies.
10

The products produced include butter, ghee, Dairy whitener, SMP, shrikhand, amrakhand, lassi, basundi, paneer etc. Our team of Veterinarians is working on clean milk production. In extension work they will give the complete knowledge to farmers about health of the animal feeding, housing and management, artificial insemination. Vaccination and FMD in September and May-June is carried out. Farmers visits to other Dairy farms to get technical information. Free camps of Animal health and treatment. Full demonstration of management and medicines. Regular center checking for prevention of adulteration of milk.

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COMPONY PROFILE

SLOGAN:ADDRESS:

GOOD MORNING TO GOOD HEALTH

HEAD OFFICE

GOVIND MILK & MILK PRODUCTS PVT. LTD. Ganeshsheri Pandharpur Road, Kolki Phaltan, Dist. Satara, Phaltan 415 523 Tel: (+91) 02166 221302/222538/221548 Fax: (+91) 02166 226025 Email: contact@govindmilk.com
BRANCH OFFICES GOVIND MILK & MILK PRODUCTS PVT. LTD. Shantinagar Co-op. Housing Society, B-1, Shop No. 4, Ram Tekadi, Near Kirloskar Bridge, Hadapsar, Pune 411028 Tel: (020) 26821036

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CHAPTER-5 PRODUCT PROFILE

13

PRODUCT PROFILE 1. MILK

Features:
Govinds milk is healthy Fresh milk

It is gone through the process of Standardization and Pasteurization

Point of purchase Trade Show Free Sample Coupon

Milk contains two things

Bonus

Fat and SNF (Solid not fat) Fat is responsible for the viscosity while SNF brings whitening in

the milk. Based on the percentage of fat theretare 5 types of milk. Contes Milk Products
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Price Cut Offer

0.5% 1.5%

Milk Fat

SNF 9% 9%

Skimmed Milk Double toned milk

METHODS OF SALES PROMOTION

Demonstration

RESEARCH METHODOLOGY The Marketing Research Process:Once the need for marketing research has been established, most marketing research projects involve these steps: 1. Define the problem 2. Determine research design 3. Identify data types and sources 4. Design data collection forms and questionnaires 5. Determine sample plan and size 6. Collect the data 7. Analyze and interpret the data 8. Prepare the research report

Method of study:Type of study: Nature of study: Type of questionnaire: Type of questions:

15

Descriptive Quantitative Structured Open ended & Close ended

Type of analysis:

Statistical

SOURCES OF INFORMATION Primary data collection:Primary data for the project was obtained with the help of structured questionnaire and conducting surveys. Research Technique :- Survey method Contact method :- Personal interview Questionnaire

Research Instrument : -

SAMPLING PLAN
Sample element Sample extent Sample size Sample duration ::::Retailers Shukrwar peth and Guruwar pethPimpri Pune. Sample consists of 120 respondents 2 months (25-06-2010 to 25-07-2010) Random sampling

Sampling procedure: -

Secondary data collection

Secondary data was collected from theory books (Marketing management) and website of the company i.e. 1.www.govind.com
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CHAPTER-8 DATA ANALYSIS AND INTERPRETATION

17

DATA ANALYSIS Analysis of sales promotion reports:Sales promotion activities were analyzed on the basis of interaction and questioning with 120 retailers in Shukrwar Peth, Guruwar Peth,Hadapsar, Pimpri-chinchwad With structured questionnaire consisting of both open ended and close ended questions the respondents were studied. It includes questions on brand promotion awareness, rating and multiple choice questions besides some descriptive type questions. So I here taken 120 as standard sample size out of 190,for the analysis of the effectiveness promotional activities of mother Dairy in Pune city after the new product launch. Following results were obtained from the answers given by the respondents.

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1)

Do you sell/stock milk? If no what is reason?

INTERPRETATION:-

SR. NO
1 2 Total

ANSWER RESPONDENT

OF NO OF RESPONDENT
96 24 120

PERCENTAGE
80 20 100

Yes No ------------------------------

Most of the retailers keep milk in their shops for sale, while remaining retail outlets can be motivated to sell milk.

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Reason for not selling milk:INTERPRETATION:Sr N Reason N S M

1 2 3 4 Total

No Refrigerator Low margin 12 No refrigrator Time problem 4 Other 2 --------------------- 24

Reason For Not Selling Milk 6 25

Lowm argin

No of Respondent

PERCENTAGE
50
Other

Tim problem e 8

17 100
17% 8% 25%

50%

Maximum retailers refuse to sell milk due to low margin, time factor is also important, while some do not have refrigerators too chill milk so there is scope for company to sponsor for freezers and capture market share.

2)Which milk brand do you sell/stock?

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INTERPRETATION:-

100 80 60 40 20 0 Govind C hitale Katraj Am ul Other East

Sr.no
1 2 3 4 5

Milk brand
Govind Chitale Katraj Amul Other 35 96 48 15 10

No of respondents (out of 96)

Near about all the retailers who sell milk keep Chitale milk brand while most of them have trier Govind milk at least once from the launch of its all three variants in pune city.

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3)Have you ever sold Govind Milk?

a) Yes b) No

E S ver old GovindMilk

Yes 0% No

100%

INTERPRETATION:Sr N 1 2 Answer Respondent Yes No 96 00 96 100 00 100 Of No Of Respondents

PERCENTAGE

Total --------------------

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Almost all the retailers who sell milk in their outlet have sold Govind Milk 4)Why you had specifically selected Govind milk only?

FeaturesInfluincingT Customers o
10% 25% 37% Brand Price 28% Quality Service

INTERPRETATION:Sr n Preference Factor

1 2 3 4 Total Brand Price Quality Service --------------------------

No of respondents
35 27 24 10 96

PERCENTAGE
37 28 25 10 100

From the above survey it is observed that consumer give more preference to brand and price than any other factor while purchasing milk
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5)Which medium of advertising is most effective?

INTERPRETATION:Sr.no Effective Meadium of Adverti

1 2 3 4 Total Press Advertising Radio Advertising Television Advertising Other -----------------------------------------

No of Respondent
8 24 58 6 96

PERCENTAGE
8 25 61 6 100

It is found that most of the customers are under influence of T.V. advertisemen 6)Are you aware about various promotional activities of Govind milk?
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AwarenessAbout Promotional Activities Of Govind milk

Yes No 35% 65%

INTERPRETATION:Sr.n o
1 2 Total Yes No -------------------------------------------34 62 96 35 65 100

Aware about promotional act

No of Respondents PERCENTAGE

The company has large no of promotional activities but many retailers are unaware about them so it is necessary to concentrate on increasing awareness about the promotional activities of the Govind Milk in pune city

7)How is the effect of promotion on selling?

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E ffectOf Prom otionOn S elling

EXCELLENT VERY GOOD 6% 3% 35% AVERAGE POOR

56%

INTERPRETATION:Sr.no
1 2 3 4 Total

Retailers rating
Excellent Very good Average Poor 33 54 6 3

No of respondents
35 56 6 3

PERCENTAGE

------------------------------- 96

100

According to most of the retailers the effect of the promotional activity is very good on selling. 8) Which promotional scheme was more effective to attract new

customer?
1) Scheme-1:- 5 days milk free on continuous purchase of 25 days.

2) Scheme-2:- Rs 2 discount for cow milk

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3) Scheme-3:- incentive scheme 4) Scheme-4:-- Exclusive counter scheme

Effective Scheme
60 50 40 30 20 10 0 Effective Schem e Schem e-1 58 Schem e-2 18 Schem e-3 4 schem e-4 16

Sr no
1 2 3 4 Total

Scheme
5days milk free on purchase of 25 days. Rs 2 discount for cow milk Incentive scheme Exclusive counter scheme ------------------------------------------------------------

t d n o p s e r f O N

No of respondents
58 18 4 16 96

The scheme of 5 days milk free on continuous purchase of Govind Milk for 25 days was the most effective scheme that attracted customers.

9)How do you grade Govind Dairy according to their sales promotion activity? a) Poor
c) Average b) Fair d) Good

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Grading Of Promotion
50 40 30 20 10

t d n p s e R F O o N

0 Poor 7 Fair 16 Average 24 Good 49

Grading Of Prom otion

INTERPRETATION:-

Sr.no
1 2 3 4 Total

Grading According to sales promotion Act

Poor Fair Avrage Good ----------------------------------------------------------------

No of Respondent
7 16 24 49 96

Maximum no of retailers have graded Govind Dairy as good for promotional activity.

10)Do you shift your purchase brand according to promotion activity?

a) Yes b) No

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INTERPRETATION:-

Sr no Brand Shift According To Pr

1 2 Total Yes No ------------------------------------------------

No of Respond
57 39 96

ERCENTAGE
59 41 100

Most of the retailers shift their brand according to the promotional schemes and activities of the companies.

11)How is the frequency of promotional activities of Govind Dairy? a) High b) Medium c) Low
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Frequency Of Promotion Of Govind Dairy

60 50 40 30 20

t d n p s e R f O o N

10 0

NO OF RESPONDENTS

HIGH 55

MEDIUM 32

LOW 9

INTERPRETATION:Sr no
1 2 3 Total

Frequency of promotion
High Medium Low ------------------------------------------------------------

No of respondents
55 32 9 96

Most of the retailers accepted that frequency of promotion activities is high.

12)Does the end consumer repurchase the product after the scheme is changed / over?
a) Regular b) Frequently c) Not at all

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REPURCHAS B AVIOUR E EH
22% 43% 35%

REGULARLY FREQUENTLY NOT AT ALL

INTERPRETATION:-

Sr.no. Repurchase Behaviour

1 2 3 Total Regularly Frequently Not at all --------------------------------

No Respondents
34 41 21 96

of PERCENTAGE
35 53 22 100

Maximum number of consumer consistently purchase the product even after the Scheme is ended.

CHAPTER-9
31

OBSERVATIONS AND FINDINGS

OBSERVATION AND FINDING

The promotional activities of mother Dairy are adequate but the awareness of the schemes

is very less in the retailers network.

Near about 80% of retailers keep milk for sale in their shops. Remaining 20% of retailers do not sell milk because they do not have refrigerator and

because of low margin.

Chitale is leading milk brand and all retailers keep this brand for sale. All retailers had kept Govind milk for sale during its launch. Govind milk was preferred due good brand image and price cut offer. 32

 Maximum retailers get information about brand from distributor and company P.S.M.
Television and radio advertisements are more effective to attract consumers. In spite of good brand awareness maximum numbers of retailers are unaware about the

promotional activities offered by Govind Dairy.

Effect of promotion on sales quiet satisfactory. Maximum retailers shift the brand according to the promotional schemes offered by the

company.
Frequency of promotional activities of Govind Dairy is satisfactory.

Some reasons that create an dissatisfaction id mind of retailers and customers about Govind Dairy are as follows:- .
Distributor do not provide the adequate information of the schemes to outlet

owner The company provides schemes for short period. Many times the scheme is not feasible and can disturb the customer for the price.
The logistics and distribution network of Govind Dairy is not up to customer

requirement.As we can see this problem is more behavioral,

Govind Dairy can look into the matter with the customer care support team and solve the existing problem.

SWOT ANALYSIS

Strengths:33

Brand Name High Quality Comparative Price Good Packaging Products stand for most suitable segment.

Weakness: Proper Schemes are not available for Retailers. 3rd preference by the retailers Very Low margins as compared to the competitor. Poor service given by Distributors

Opportunities:-

Increase in market demand for Dairy Products. Lot of Potential market. The people are getting more health conscious day by day and fitness trend is catching up. High demand due to hygienic production.

Threats:-

Advertising and branding by the rivals like Amul. Local brands, which gives high margin. Strong Competitors like Chitale, Katraj and Amul. Promotional schemes & margin given by competitors. Increasing adulteration in the packaged milk can lead to shift customer to purchase loose milk.

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CHAPTER-10 RECOMMENDATIONS AND SUGGESTION

35

RECOMMENDATION
As I found that many people are aware about Govind Dairy but those who are aware, dont

know that Govind Dairy has launched milk also Govind Dairy is supplying fresh cow milk, not recombined from powder or white butter. So in the promotional activities the company should give more emphasis on Fresh Milk. Regular interaction and training programmed for dealers.

Promotion should be done through the news paper suppliers as they are in continuous touch with the end consumers. Scheme should be provided on regular basis. Regularly conducting market research and introduce service innovations.

Company should have complaint box at convenient location for grievance handling. The retailers are not doing much advertisement at individual level, they are totally

dependent on the companys advertising and brand name, so company should motivate retailers to promote Govind Milk. If company is able to convince the owners of outlets then he can do mouth publicity that

will help to increase sales. Company PSM should do regular follow up that schemes given by reaching to retailers

and to end customers. Remove the barriers for retailers or consumers to interact directly with company and also

empower employees to solve problems speedily and satisfactorily. To go for aggressive promotional activities like organizing Health Fair, Seminars etc.

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SUGGESTIONS FROM OUTLET OWNER SIDE :-

1.

More advertisements through various media

such as newspaper, radio and television which will increase customer awareness.
2.

Decoration of outlets by cutouts, neon sign

board, hoarding, stickers etc which attact the customer.

3.

Company should sponsor refrigerators to

retailers for stocking milk. 4. visits of distributors and sales person. 5.

6.

Improve distribution

network.

Regular

Proper replacement of products. Company should increase Profit margin for

retailers.

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CHAPTER-11 CONCLUSION AND LIMITATION

38

CONCLUSION

From above survey I would like to conclude that Govind Dairy has good brand image in the market but people are not aware about launch of Govind Dairy milk in to market. Schemes given by Govind Dairy are not informed and provided to retailers. Mother Dairy have to work on promotional activities, Govind Dairy have to strengthen their distribution channel which will help them to take competitive advantage over other competitors and will lead to increase sell of milk it will help Govind Dairy to increase profit.

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LIMITATIONS
The project was conducted in the region of Pune and the sample size was 120. The Following are the limitations that were faced while doing the project. 2. The survey was done only in the Pune. So the sample size of 120 is not

enough to come to a valid conclusion about the product.

3.

In some areas retailers refused to fill the questionnaire because they think that

I am not an employee of Mother Dairy. 4. Though attempts have been made to clarify the questions to the respondent

but still complexity of questions may cause some errors. 5. The respondent interprets the different rating scale in a different manner.

The problem what I noticed in that company was limited scheme i.e. company offers very limited number of schemes and limited timing for scheme, where people are looking for more schemes The biggest problem what I faced while completing my project was insufficient time of retailer. The time was insufficient to give the complete information about the product. Limited Area was one of the disadvantages that I had to complete the project. The area that I had was very small and restricted to some limits.

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CHAPTER-12 BIBLIOGRAPHY

BIBLIOGRAPHY

Books:1. Philip Kotler Marketing Management 13th edition.(A South Asian Prospective. )
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2. Marketing Management (V S Ramaswami and Namakumari)

Newspaper:1. The Economic Times 2. The Times of India

Web-Sites
1. www.govind.com 2. www.google.com

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CHAPTER-13 ANNEXURES

QUESTIONNAIRE
1) Do you sell/stock milk? If no what is reason?

a) Yes b) No

43

2) Which milk brand do you sell/stock?

a) Govind milk b) Chitale c) Katraj d) Amul e) Other

3) Why you had specifically selected Govind Dairy only?

a) Price b) Quality c) Service d) Brand

4) From which source you have got information about Govind milk?

a) Company P.S.M b) Distributor c) Advertisement d) Other

5) Are you aware about various promotional activities of Govind

44

Dairy? a) Yes b) No
6) Which medium of advertising is most effective?

a) Press advertising b) Radio Advertising c) Television advertising

d) Other

7) How is the effect of promotion on selling? a) Excellent b) Very good c) Average d) Poor

8) Which promotional scheme was more effective to attract new customer?

a) Scheme-1:- 3 days milk free on continuous purchase of 27 days.

b) Scheme-2:- Rs 2 discount for cow milk c) Scheme-3:- incentive scheme d) Scheme-4:-- Exclusive counter scheme
45

9) Do you shift your purchase brand according to promotion activity?

a) Yes b) No

10)

How do you grade Govind Dairy according to their sales promotion activity?

a) Poor b) Fair c) Average d) Good

11)

How is the frequency of promotional activities of Govind Dairy?

a) High b) Medium c) Low

12)

Does the end consumer repurchase the product after the scheme is changed /

over? a) Regular b) Not at all

46

c) Frequently

13)

Which pack size of milk do you prefers?

a) 200ml

b) 250ml c) 500ml d) 1000ml

47