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SUMMER TRAINING REPORT

ON
MARKETING PROCESS OF
VERKA MILK PLANT {BATHINDA}

Survey: Consumer perception towards Verka products | Gagandeep Singh

ACKNOWLEDGEMENT

A large number of individuals have contributed to project. This project is a humble


attempt to sketch done the contribution of all those persons who have directly or
indirectly given their precious time and help along with proper guidance for
making this report in the following shape.
First of all I would like to thank Mr. Mahinderpal Singh (General
Manager, Marketing) Verka milk plant, Bathinda without whose permission
project of VERKA would have been castle in the air.
Who always helped me and provided me relevant knowledge in the subject
to enable to prepare the project. And also I would like to give thank to Mr.V.K.
Sharma, project co-ordinate (Deputy Manager, Marketing) whos supported to me
in every aspect.
Lastly but not the least, I pay my gratitude to my parents, family
members, friends, faculty members of University School of Business Studies and
all executives of Verka Milk Plant, Bathinda for their moral support and whole
hearted co-operation in drafting this report.

DECLARATION
I hereby declare that the project report entitled MARKETING PROCESS
OF VERKA submitted in partial fulfillment of the requirement for the degree of
Master of Business Administration of University School of Business Studies is
my original work and has not been submitted for the award of any other degree at
any other institute or university.

Gagandeep Singh
Roll No. 409
MBA (IC) 2nd

Page | 3

PREFACE

For management careers, it is very important to develop managerial skills. In


order to achieve positive and concrete results, along with theoretical concepts, the
exposure of real life situation existing in a corporate world is very much needed.
To fulfill this need, this type of practical training is required.

I underwent summer training in VERKA MILK PLANT, located in


Bathinda. It was my fortune to get training in a very healthy company. I got great
opportunity to view the overall working of the organization. In the forthcoming
pages, I have attempted to present a report covering different aspects of my
training.

CHAPTER I
DAIRY INDUSTRY IN INDIA
India retains position as World's top Milk Producer

India has retained its number one position as worlds largest milk producing
country by pushing the United States to second position.
This is the ninth year in a row that India enjoys the numero uno status in milk
production. Indias milk production grew almost 4.2% as against the worlds
average growth of less than 1%.
In India, milk has a special role to play for its many nutritional advantages as
well as providing supplementary income to some 70 million farmers in over
500,000 remote villages.
And milk remains as the number one commodity product by India pushing
wheat and rice behind. Countrys output now covers 100 million tones and is
valued at nearly two lakh crore rupees
In spite of being the worlds largest milk producer; Indias milk processing
industry is not very large. Only 12% of milk is delivered to dairies as against
the world average of 70%.

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In certain countries like New Zealand almost 98% of milk production is


processed. Bulk of Indian milk is utilized for drinking or in the unorganized
sector for making sweets or other traditional products.
The Indian dairy industry is contributing significantly to the country's economy,
besides improving the health standards by increasing the nutrition value of the
food.
The value of output from dairy sector increased to Rs. 5,00,510 million in
1994-95 from Rs. 2,75,080 million in 1990.
India occupies first position in the world having a total bovine population of
288 million compared to the world's total bovine population of 1420 million.
As per 1992 livestock census, the country has about 62.90 million breed able
cows and 42.46 million breed able buffaloes.

The cross bred cattle are predominant in Kerala, Maharashtra, Tamil Nadu,
Punjab and Uttar Pradesh, while buffaloes are very common in Uttar Pradesh,
Andhra Pradesh, Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Punjab,
Bihar, Karnataka, Haryana and Tamil Nadu.
There has been a major improvement in milk production which increased from
17 million ton in 1951 to 70.1 million ton in 1997 and the growth was
maximum between 1980 and 1990.

Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Maharastra, Gujarat,


Andhra Pradesh, Haryana, Tamil Nadu and Bihar contributed to the extent of 85
percent of the total milk production in the country.
Today, India is the second largest producer of milk in the world after the United
States of America. The present per capita availability of milk is 205 gms as
against the ICMR recommendation of 250 gms.
In 1970 under the aegis of NDDB, "Operation Flood" programme was launched
to modernize the dairy sector and flood the four metro cities with from dairy
cooperatives.
By the end of 1996-97,

74, 383 village milk producers cooperatives were

organized in 264 districts with an average rural milk procurement of 12.26


million liters per day.
Another step was taken in 1989, to augment rural income by launching
Technological Mission on Dairy Development (TMDD), which aims at
applying modern technology to improve productivity, reduce costs of operation
and thus ensure greater availability of milk and dairy products.
Milk procurement and processing

The organized dairy sector (both co-operative and private) is presently


handling only 10-12 percent of total milk production in the country.

The targets and achievements of milk production, procurement and


processing in co-operative sector by the end of VIII Five Year Plan are given
in Annexure II.

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Thus it indicates, there is a wide scope for processing of milk and


manufacture of milk products for domestic consumption as well as export.

Export performance

Dairy products form one of the fastest growing segments in the livestock
produce export.

The major products exported are malted milk foods, ghee and cheese (to
some extent) to the countries like Bangladesh, UAE, Nepal, Sri Lanka,
Bahrain and Oman.

Export potential and marketing


Bangladesh, United Arab Emirates, Nepal, Sri Lanka and Oman are the
potential countries for export of malted milk products, butter and ghee.
The export of milk and milk products to currently existing markets would
increase to Rs. 285 million and to new markets to Rs. 155 million. Thus exports
are likely to touch Rs.440 million by the turn of the century.
The GATT agreement further gave a boost to the dairy industry, as India has a
comparative cost advantage in regard to milk production.
NABARD has been actively involved in credit disbursement in a number of
schemes in dairy sector.

Overview of the Indian Dairy Sector

The country is the largest milk producer all over the world, around 100 million
MT
Value of output amounted to Rs. 1179 billion (in 2004-05) (Approximately
equals combined output of paddy and wheat!!)
1/5th of the world bovine population
Milch animals (45% indigenous cattle, 55 % buffaloes, and 10% cross bred
cows)
Immensely low productivity, around 1000 kg/year (world average 2038
kg/year)
Large no. of unproductive animals, low genetic potency, poor nutrition and lack
of services are the main factors for the low productivity
There are different regions developed, average, below average (eastern states
of Orissa, Bihar and NE region) in the dairy industry.

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CHAPTER II
ABOUT MILKFED
HISTORY
Milkfed is not an unknown name for the people of Punjab. It is very
popular among the people. There is a very long history behind this popularity.
In 1959, a village named 'Verka' near Amritsar, Chief Minister of Punjab
Sardar Partap Singh Kairon established a Dairy Development Corporation for
safeguards of farmers and increase dairy business. After some times four more
Milk Plants were established i.e. in Chandigarh, Mohali, Ludhiana and Bathinda.
There after it progressed and the number of Milk Plants roses to 8 Plants upto
1980. Before 1981 it is fully under the control of Punjab Govt. But after it in 1981
the Govt. has developed its name from Punjab State Co-operative Milk Producers
Union Ltd. into MILKFED Punjab. All the plants were controlled by Head Office
which is established at Chandigarh. Only one balance sheet was prepared for all
plants in Punjab and Profit & Loss for all the plants was prepared collectively. But
in 1981 all plants started to make their own Balance Sheet and calculate Profit &
Loss for their own plant. The fully Co-operative Society System was adopted and
presently is in continue.
Milkfed, Punjab
The Punjab State Cooperative Milk Producers
Federation
Limited
popularly
known
as MILKFED Punjab, came into existence in 1973 with
a twin objective of providing remunerative milk market
to the Milk Producers in the State by value addition and
marketing of produce on one hand and to provide
technical inputs to the milk producers for enhancement
of milk production on the other hand.

Although the federation was registered much earlier, but it came to real self in the
year 1983 when all the milk plants of the erstwhile Punjab Dairy Development
Corporation Limited were handed over to Cooperative sector and the entire State
was covered under Operation Flood to give the farmers a better deal and our
valued customers better products. Today, when we look back, we think we have
fulfilled the promise to some extent. The setup of the organisation is a three tier
system, Milk Producers Cooperative Societies at the village level, Milk Unions at
District level and Federation as an Apex Body at State level. MILKFED Punjab
has continuously advanced towards its coveted objectives well defined in its
byelaws.
Organization Structure:

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ACHIEVEMENTS
On the basis of quality with efficient administration, MILKFED has not only
established new mile stone of providing services to Dairy farmers but scaled new
heights in delighting esteemed customers also. This has resulted into tremendous
achievements in all fields. Milkfed not only provides assured market to milk
producers but also carries inputs to enhance milk to their doorsteps. The District
Cooperative Milk Producers Unions and Milk Plants have attained self-sufficiency
or are on the threshold of attaining it. Milkfed has played a very vital role in
providing a strong base for remunerative price to the producer; they get more
money for their milk and payments are timely. In addition technical input services
in feeding, breeding and management are easily accessible. Value addition is one
of Milkfeds thrust areas and the plants produce not only pasteurized, homogenized
milk but also buttermilk, cream, cheese, ice cream, butter and clarified butter-oil
(ghee) and several other products. The Milk Unions have marketed milk and milk
products of the value of Rs 202.87 crore during the year under report. As a
cooperative, Milkfed is also instrumental in empowering milk producers,
especially women and poor people, and fostering management skills. Milkfed runs
regular courses for members in Co-operative Development.
1.

MILKFED is providing technical input services like animal healthcare,


supply of quality cattle feed, fodder seeds etc. at the door steps of the dairy
farmers under its Productivity Enhancement Programme.

2.

For producing quality technical services MILKFED has established its own
two cattle feed plants having capacity of three hundred metric ton per day.

3.

Dairy Farmers are being encouraged to produce quality milk under the Clean
Milk Production Programmes by paying premium price for quality milk.

4.

MILKFED installed a bactoscan in its Milk Union, Ludhiana which is first


in India for determining the bacterial counts in raw milk at different stages.

5.

During the last 3 years, 8 Milk Plants and 2 Cattle Feed Factories of
MILKFED, Punjab was accedited with ISO-9002 and ISO-15000
(HACCP) Certification.

6.

In view of today's interest of consumers in getting quality and safe products,


MILKFED is manufacturing quality milk and milk products as per
International Standards and also exploring the possibility of manufacturing
milk products of consumer's choice.

7.

MILKFED has launched its own interactive Website on Internet for its
prospective

customers

which

can

be

accessed

by

clicking

http//www.milkfed.nic.in
8.

MILKFED introduced liquid milk in new design packing with Mnemonic


Symbol of Co-operative Milk in all the District Milk Unions.

9.

The turnover of MILKFED, Punjab during the year 2006-2007 was arrived
at Rs. 725 crore.

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MARKETING STRATEGY OF MILKFED, PUNJAB

Milkfed is serving nationwide consumers


through its network of Regional offices and
very
strong
Distribution
channels. Milkfed markets a wide range variety
of Verka products which include liquid milk,
skimmed milk powder, whole milk powder,
infant food, ghee, butter, cheese, lassi, SFM, Ice Cream, Malted food etc. The
annual turnover of milkfed has crossed Rs.931 crores.

EXTENSION OF THE BRAND:


After winning faith of innumerable consumers,
Verka did not stop. Changing times brought new
trends, needs, tastes and hopes. Verka, dynamic
as ever too acquired newer forms of adding values
to milk and milk products. Apart from introducing
new variants of UHT long shelf life milk and
SFM in carry away bottles, Milkfed has a plan to
add more variety of flavours in SFM. VERKA Ice Cream in different flavours and
packagings is available in the market. Many new products are in pipe line. In true
sense, milk had never meant so much before.

TURNOVER:
The annual turnover of Milkfed which was Rs.931 crores in the year 2007-08 has
hit the level of Rs.1150 crores in the year 2008-09.

Turnover (Rs. in Crores)


VISION OF MILKFED, PUNJAB
1.

Under its vision - 2005 Plan the number of Milk Producers' Co-operative
Societies will increase to 8000 and membership to 4.75 lakhs.

2.

To improve the quality of milk at village level, it has been planned to


provide Milk Bulk Cooling Unit in all the MILKFED areas in a phased
manner.

3.

To bring transparency in all the milk collection, fat testing and payment,
electronic milk-o-testers & automatic milk collection centres will be
provided at village level Dairy Cooperative Societies.

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4.

Expansion of butter manufacturing capacity and reconditioned butter


manufacturing machinery will be installed.

5.

Expansion of existing ice cream manufacturing capacity and set up


additional Ice Cream Plant at Jalandhar.

6.

Milkfed strives to give better and remunerative price to the farmers to make
dairy attractive and sustainable profession.

7.

Providing improved technical input services to farmers.

8.

Setting up big commercial farms.


CHAPTER III

ABOUT THE UNIT


Milk
Plant
Bathinda
was
commissioned in September, 1974
with a total outlay of Rs. 1.6 Crores by
The Pb. Dairy Dev. Corporation
limited. It was one of the select cooperatives that were covered under the
Operation
Flood-1
Programme.
Subsequently on Ist March, 1980, it
was handed over by the State Govt. to
The Punjab State Co-operatives milk
Producers federation Ltd. (MILKFED)
which is an apex level
Organization of milk producers operative in the State. Further to this development,
the Milk Plant was handed over to The Bathinda District Co-operative Milk
Producers Union Ltd. (registered in the year 1978 under Punjab co-operative Act.)

on 1st January 1988. Milk Plant set up with a twin objective of providing
remunerative milk market to the milk producers in this area and also supplies good
quality milk products to the consumers at reasonable rates and also marketing of
milk producers at village level.

Before the year 1992-1993 the milk


procurement was in a very bad shape.
Milk plant was running under capacity.
The improvement in milk procurement
by 40% was achieved in the year 199495 and the best achievement was made
in the year 2000-01 about 42000 milk
producers members are attached with
the milk union through village level
cooperative societies.

Inception
Milk Production is a very important part of the agricultural economy in the State of
Punjab. Punjab is one of the smallest States in Indian Union with a total area of
50,362 Sq. Kms, which is 1.5% of the Indian landmass. Dairy Farming is an ageold subsidiary profession in the rural areas of Punjab. Punjab is the second largest
milk producing state in India, producing around 10% of the countrys Milk
Production i.e. 8 million tons annually.

1.
2.
3.
4.
5.
6.

First Milk Plant, of the State was setup at Verka near Amritsar.
Milk Union, Bathinda was registered as a society in 1977
The brand name of Milk and Milk Products was adopted as Verka.
An ISO 9001:2000, HACCP: 15000 & export certified unit.
Turnover of Milk plant, Bathinda is Rs. 55 Cr. per annum
The capacity of the plant is 1.00 lac. Liter per day.

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Objectives

1. To strengthen dairy sector, Milkfed came into existence in 1978 and


Simultaneously Distt. Milk unions were formed.
2. Village level cooperative societies were also formed on "Anand Pattern".
The system was run by the farmers, of the farmers and for the farmers.
3. To give remunerative prices to farmers and to ensure permanent market for
the whole year.
4. To provide technical inputs like artificial insemination, to improve the breed
of animals, animals health services, preventive disease treatment and
awareness regarding farm management etc.
5. To provide ISI marks good quality balanced Cattle feed and fodder seeds to
the farmers.

Quality of Milk and Milk Products

1. To improve the quality of raw milk, Clean Milk Production program started
in 650 villages and resultantly the quality of products increased.
2. Milk Plant, Bathinda is one of the milk plant in India in Dairy Sector to get
ISO Certification.
3. Under ISO Certification and HACCP (IS 15000) Milk Union started export
of Ghee, SMP to Gulf Countries Philippines, Manila, South Africa,
Singapore, Bangladesh etc. The export is more than 5.5 crore during the last
year.
4. To further improve the quality of Raw Milk, Milk Union started 365
Automatic Milk collection Stations at village level.
5. To meet the Challenges of WTO Milk Union started TIFAC program with
the help of Ministry of information.
6. Bulk Milk Coolers have been installed at village level to chill the milk on
this spot and to check bacterial count.
7. Further BMC has been approved under central govt. Scheme on 75% grant
to be installed in societies.

CHILING CENTER:
At present six milk chilling centers are functioning under milk plant verka.
The detail of which are as under:
1. M.C.C, Rampura,

2. M.C.C, Bhagta 3. M.C.C, Talwandi Sabo

4. M.C.C, Badal

5. M.C.C, Bhikhi 6. M.C.C, Sardulgarh

FINANCIAL PERFORMANCE
Milk Plant, Sangrur has earned a Net profit of Rs. 110.51 in year 2000-2001
and in 2001-2002 was 261.54 lakh. In the year 2002-2003 plant has earned net loss
of 40.63 lakh and in 2003-04 it earned net loss of 102.38 lakh. For the year 200506 and 2006-2007 it had net loss of 150.98 and 188.31 lakh respectively.
The detail of Profit/Loss of last 6 years is as under:YEAR

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PROFITILOSS (Rs. In lakh)

2000.1

110.51

2001-02

261.54

2002-03

-40.63

2003-04

-102.38

2005-06

-150.98

2006-07

-188.31

CHAPTER IV
FUNCTIONS & HIERARCHY OF
MARKETING SECTION
MRKETING DEPARTMENT
The marketing section plays a vital role in the plant and the union. The marketing
section of Milk Plant, Bathinda is a well-functioning section, which seals the
product produced here under a trade name of verka this marketing section covers
following section Punjab as well as in others state in Haryana, Rajisthan.
A.

Punjab

1. Bathinda
2. Mansa
3. Faridkot
4. Firozpur
5. Rampura
6. Talwandi Sabo
7. Malout
8. Abohar

B. Haryana
1. Hisar
2. Sirsa
3. Rania

4. Dabwali
5. Ellenahbad
C. Rajistan
1. Sangria
2. Shri Ganganagar
ORGANIZATION STRUCTURE
The marketing department at Verka milk pant, Bathinda is one of the major part of
whole management. This section is working in a well-designed structure. All the
departmental activities are well co- ordinated and fruitful.

General
Manager
Deputy
Manager
Field sales

Page | 21

Field sales

Field sales

Sales

Sales

Sales

Sales

Sales

Sales

Sales

Sales

Sales

Sales

Sales

Sales

SALIET FEATURES OF MILK PLANT VERKA


1. SUPPL OF LIQUID MILK
Milk plant bathinda protects the interest of milk producers as well as the consumer
of milk and milk products. It is supplying 28,000 Ltrs of milk per day to the urban
population. Milk Plant Bathinda supplies fresh, hygienic pasteurized milk. The
bathinda milk plant produce various kind of milk i.e. Full cream, Standard milk,
Toned milk, Double toned milk and others milk products to serve different
segment of consumer market.
2. Export of Ghee
With the competition in the national market hooting up, efforts to export milk
product has been made. Milk plant has exported 40 Mts. Of ghee to Gulf counties
in the month of January and February 2010, which are around value of 3 Lac $
3. Automatic Khoa making machine.
Recently an automatic khoa making machine has been installed which can
manufacture to Mts of khoa every day, which is most hygienic, fresh and is a base
for most of the sweets.
4. Sweetened flavored Milk and Verka Lassi
A large numbers of milk bars have been started. In the city of Abohar , Bathinda,
Malout, Muktsar, Moga, Bhagapurana, Nihalsingh wala, Mansa and a large
network of dealers are also made to supply milk and milk products. The demand of
sweetened flavored milk and verka lassi has increased manifold.
5. Milk Products
The Milk Plant is manufacturing Skimmed milk powder, Whole powder, Ghee,
Table Butter, Panner, Khoa, Namkeen lassi, Kheer and Milk cake.

6. Quality assurance
The management of milk plant has adopted especial program on quality since two
years called Quality Assurance Programme in which ensured that the final product
must come out with national and international quality norms as per P.F.A.
standards. The products also tested various standard laboratories like composite
food laboratories.
7. Financial Position
The Financial Position was very week before 2008-09 which started improving
with the improvement of milk procurement. The losses were reducing year to
year and now a stage has come that the union will definitely earn net profit in
the year 2009-10. The annual loses were incurred to the tune of 1.25 to 1.40
crores but in the year 2009-10 after wiping out such loses the union has
increased at net profit.
Milk and Milk products are prepared as per the norms by pasteurizing the milk and
others required process to fulfill the target/norms as per the market demand. Milk
plan also got ISO-9001:2000 with HACCP (as per IS: 15000: 98) and also
approved by the Export Inspection Agency New Delhi for export the milk
products. Milk products having standards norms of PFA/BIS/EGG MARK and our
prescribed specification if International Standards for export of ghee and Milk
Powder to Dubai and Middle East Countries.
Products : - (BRAND-VERKA)

Milk
Ghee

Skimmed Milk Powder

Whole Milk Powder

Table Butter

Paneer

Khoa

S.F.M.

Milk Cake

Page | 23

CHAPTER V
INTRODUCTION
OF
VERKA PRODUCT
Verka milk plant, Bathinda is serving wide consumers through its network of
Regional offices and very strong Distribution channels. Milk plant markets a wide
range variety of Verka products which include liquid milk, skimmed milk powder,
whole milk powder, infant food, ghee, butter, cheese, lassi, SFM, Ice Cream,
Malted food etc.
The Union has a processing capacity of 100TLPD and drying capacity of 6.2
MTD. It also owns four Milk Chilling Centers namely Rampura (15TLPD),
Talwandi Sabo (10TLPD), Bhikhi (15TLPD) and Sardulgarh (20TLPD). In
addition the union has hired ice factory Bhagta with a capacity of 20TLPD.

1.

Fluid Milk

GENERAL COMPOSITION FOR MILK STANDARD MILK


Percentage Cow Milk Buffalo Milk
Fat
4.6
6.6
Proteins
3.4
3.9
Lactose
4.9
5.2
Ash
0.7
0.8
Water
86.6
84.2

Milk Fat % (Min)


Milk SNF % (Min)

4.5
8.5

2. Cheese & Paneer

CHEESE SPREAD
Moisture % (Max.on dry matter basis)
60
Page | 25

PROCESSED CHEDDAR CHEESE


Moisture % (Max.on dry matter basis ) 47

Milk Fat % (Min.on dry matter


basis ) 40

Salts% (Max. by
Wt.)

3.0

Stabilizer %(Max. by Wt.) (Ca.


Chlomic, Sod. Cilrate, Enzme/others)
0.02

Emulsifier %(Max. By
wt.)
4.0
Preservative% (Max. by wt.)
0.1

Sorbic Acid or Nisin or both


Y&M
Max./gm
60
Caliform Max./0.1 gm
NIL

Milk Fat % (Min.on dry matter basis )

40

Salts % (Max. By wt.)

3.0

Stabilizer/Emulsifier % (Max. By wt.}

4.0

Preservative %(Max. By wt.)

0.1

Sorbic Acid OR Nisin or both


Calcium Chloride % (Max. By
wt.)
0.02
Y&M
(Max)/gm

60

Coliforms
(Max/gm)

NIL

Aerobic Spores
(max/gm)
400
Anaerobic spores
(Max/gm)
200

Aerobic spores Max/gm


400

Anaerobic spores Max/gm


200
RAW CHEDDAR CHEESE

PANEER

Moisture % (Max.)
Fat % (Min.on dry matter basis)
Salts % (Max. By wt.)
Stabilizer/Emulsifier
% (Max. By wt.)
Preservative % (Max. By wt.)
Sorbic Acid or Nisin or both

43
42
0.20
0.2 *
0.1 *

3. Flavoured Milk :

SWEETENED FLAVOURED MILK


Milk Fat % (Min.)
Total Milk Solids % (Min.)
Sugar % (Max.)
Turbidity Test
Creaming Index
Bacterial Spores per ml. (Max.)

Page | 27

1.65
17.0
6.0
Neg.
20
5

Moisture %
(Max.by
Wt.)
60.00
Milk Fat % ( Dry
Matter)
50.00
Acidity % L.A.
(Max.by Wt.)
0.50
Bacterial Count/g
Max.
5x100000

LASSI
Milk Fat %
Total Solids % (By wt.)
Sugar %

3.0 to 3.4
20 - 23
12.00

RASEEELA
Cheese Whey %
40
Sugar %
12-12.5
Mango Pulp%
10.00
Brix
15
Acidity(%Citric Acid) 0.28
pH
3.9-4.1

4. Ghee & Butter :

GHEE (AGMARK)
Boudine Test
Neg.
B.R.reading(40 degree C.) 40 - 43
RM Value (Min.)
28.0
P.Value
1.0 - 2.0

FFA % Oleic Acid( Max) 0.30


BUTTER
TABLE

WHITE

Fat% (Min.)
80.00
Acidity %L.A. (Max.) 00.15
Curd % (Max)
01.00
Salt % (Max)
2.8
Coliform/ml. (Max.)
5
Y&M (Max)/g
20

82.00
00.06
01.50
5
20

5. Ice cream, Kulfi & Choclate

ICE CREAM

Weight (g/lts.) Min.


Total Solids (Min.) (By wt.)
Milk Fat % (Minimum)
Acidity, L.A. % (Max) By Wt.
Sucrose % Max. (By Wt.)
Stab. Emul. % Max.
Bacterial Count/g (Max)
Coliform/g (Max.)
Phosphates Test
Page | 29

560-580
38.5
13
0.25
14.50
0.50
2,50,000
90
Neg.

KAJU PINNI

Fat % 14.0 - 17.0


T.S. % 86.0 - 90.0
MILK CAKE
Fat % 17.5 - 21.0
T.S. % 75.0 - 83.0

6. Skimmed & whole milk powder :

SKIMMED MILK POWDER

MILK POWDER
Extra

Standard
Grade
Grade
Milk Fat % (Max.)
1.25
1.50
Moisture % (Max)
3.50
4.00
Titratable Acidity %L.A. (Max) 19.5ml
1.50
* of N/10 NaOH **
Insolubility Index(ml.Max)
0.5
2.00
Scorched Particles(Max)
15 mg
mg
(DISC.B)
(DISC.B)

Moisture % (Max.)
Total Solids % (Min.)
Fat % Min .
Insolubility Index (Max.)
ml *
Titratable Acidity % (Max.)
Bacterial Count/gm (Max.)
40,000
Coliform Count/0.1 g(max.)
Absent
Staphylococcus
aureus/0.1g (Max)
15 Absent
Salmonella/25g
Absent
Shigella /25g

4.00
96.00
26.00
0.5
1.20

Total Ash % (Max.)


8.2
8.2
Lactate Content (Mg/g.Max) 1.50
Bact. Count/ g.Max)
40,000
50,000
Coliform Count/g.Max)
NIL
NIL
* Except Production designated as "High
Heat"
which shall not be more than 2.0 ml
** Except Production designated as "High
Heat"
which shall not be more than 2.5 ml

Absent
* Insolubility index as per ADPI is
1.0 ml for extra grade and 1.5ml for
Starndard Grade.

7. Vigour choclate powder:

MALTED MILK FOOD WITH COCO POWDER


Moisture % (Max.by wt)
5.0
Total protein % (Min.on dry basis ) 11.25
Total Fat % (Min.on dry basis )
6
Total Ash % (Min.on dry basis )
5
Page | 31

Acid insoluble Ash % (Max.)


Solubility % (Max.)
Cocoa Powder % (Min)
SPC/ gm (Max.)
Coliform Count/gm (max.)

0.1
80
5
50,000

Note: This product is not produced at Milk Plant, Bathinda.

PRODUCTS
GHEE POLY PACK/MONO
CARTON
GHEE TIN PACK
TABLE BUTTER

PACKING
500 gms. & 1 Kg.
500 gms., 1 Kg., 2 Kg., 5 Kg &15 Kg.
10 gms., 100 gms. & 500 gms.
200/400 gms. Cekatainer, 200 gms. Singles,

CHEESE

400 gms Tin

PIZZA CHEESE
VERKA VIGOUR
DAIRY WHITENER

& 1 Kg. Brick


200 gms. & 1 Kg. Pack
500 gms. Jar, 500 gms. Refill & 1 Kg. Jar
500 gms. Pkt. & 10 Kg. Tin
200 gms. & 500 gms. Bottle, 500 gms.

SKIMMED MILK POWDER

Cekatainer

WHOLE MILK POWDER


SWEETENED FLAVOURED
MILK
SWEET LASSI

1 Kg. Pkt. & 25 Kg. Bag


500 gms.Tin, 1 Kg. Tin, 10 Kg. Tin
200 ml. Bottle, 200 ml. Tetrapak
200 ml. Tetrapak

MANGO RASEEELA
PINE APPLE RASEEELA
MILK CAKE /PEDA
KAJU PINNI
MILK POUCHES
U.H.T. MILK

200 ml. Tetrapak


200 ml. Tetrapak
200 gms Pkt.
50 gms. Pkt.
Full Cream, Standardised, Toned, Double
Toned & Skimmed.
1 Lt. Tetrapak Standardised & Toned

CHAPTER VI
MARKETING
STRATEGIES

Page | 33

The starting point for the effective marketing strategy is the consumer and his
product preferences. Studying the consumer closely, analyzing his needs,
life styles and standard of living will enable marketer to formulate
effective marketing strategies. Elements for effective marketing strategies
are:1.

Product planning

2.

Pricing

3.

Positioning of product

4.

Distribution channel planning

5.

Promotional planning

1.

Product Planning:Before entering into the production process, it would be important to

understand the likely improvements and modifications required in the existing


products. The production design, colu and quality ought to be planned as per
demand and the taste of the consumers. This would help make products acceptable
to the population. For example, it has been observed that rural consumers relish
"Homemade ghee" which is prepared by heating butter obtained by churning curd.
This process induces a peculiar attempt the ripening process for manufacturing
ghee and should develop flavor as close to that of the "Home made ghee".

The packing of products should be strong enough to with stand rough


handling. The size of packing should be smaller than urban retail pack so as to suit
the affordability by the rural masses. A low unit price pack is desirable because of
the low purchasing power of rural consumers.
2.

Pricing:Price is an important element of the marketing strategy. The role of price

becomes more significant because of low purchasing power of the Indian


population. This factor should be considered while pricing the product. For
example, the price of ghee must be lower than the cost of manufacturing ghee at
home by milk producers; otherwise they would not find it attractive to buy from
the market.
Packing cost of the product should be kept as low as possible.

3.

Positioning of Product:After analyzing the preferences of the rural consumer a firm should position

its product in an appropriate way. The positioning of the product can be done in
many ways. For example:a)

Low price positioning

Page | 35

b)

Positioning on the sense of belongingness

c)

Quality leadership
After analyzing the product attributes and studying the rural habits, tastes

and life style, one can come up with a proper strategy to position the milk products
in rural areas.
4.

Distribution Channel Planning:Distribution is a major problem in marketing. In spite of the growing

awareness about the potential of market, most marketing firms have failed to tap it
because they could not develop an effective distribution system.
The most of areas hardly have any agents, dealers or stockiest. Milk Plant
has an advantage over the private enterprises because of their daily milk collection
network of village level societies. The society works as stockiest/dealer and the
secretary of the society becomes a good medium to route the products to the
ultimate consumer. Therefore, if the secretary is given retailer's margin, he gets
motivated to sell the products. Credit facilities against the milk sale can also boost
the sales. Gram Seva Samiti can also be used as sales point by giving them suitable
margin.
5.

Promotional Planning:-

While deciding on as to which media would reach the prospective buyers


effectively, the socio-cultural background, the literacy level and their media
preferences need to be studied. Rural people with low literacy level would only
remember brands by picture symbols as opposed to brand names. For the such
consumer a message should be simple and design should be catchy to comprehend.
As mentioned earlier one should understand the psychology of the consumer
before designing the "Message". Rural milk producers generally perceive that
converting milk into ghee at home is a cheaper proposition. The message should so
designed as to break these notions of rural masses. Rural people should educate
that conversion of milk into ghee at home is a costlier proposition. Posters in this
context should be pasted at various societies and message should be communicated
through village extension workers.

CHAPTER VII
SALE TRACK OF LAST FEW YEARS
1.

Union-wise targets/achievements of liquid Milk (City Supply) during the


year 2009-10 and upto May, 2010 as comparison to the same period of
last year and targets for the month of June & July, 2010.
Year 2009-2010

Page | 37

Period
April
May
June
July
August
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
March
Total

Target
2009-10
22000
22000
24000
26000
30000
30000
29000
26000
25000
25000
26000
26000
25915

Achievement
2008-09
200910
18855
19687
21948
22263
23183
26009
23123
27802
22758
28780
22903
27927
21733
24429
19268
22850
18728
22513
18097
21904
18790
22379
18112
23094
20624
24124

%Ach.
Over
target
89
101
108
107
96
93
84
88
90
88
86
89
93

+/- % over
last year
+4.4
+1.4
+12.2
+20.2
+26.5
+21.9
+12.4
+18.6
+20.2
+21.0
+19.1
+27.5
+17.0

Year 2010-2011 Up to May 2010 & Targets for June and July 2010.

Period

April
May
June
July

Page | 39

Target
2010-11

Achievement
2010
2011

28000
28000
28000
28000

19687
22263

23934
28534

%Ach.
Over
target
85
102

+/- % over
last year
+21.5
+28.1

2.

Union wise Sale of fresh milk products i.e. Paneer, Curd, Lassi, (Plain &
Namkeen) & Kheer for the year 2009-10 and for April, 2010 against the
targets and in comparison to same period of last year and targets for the
months of June & July, 2010.

Particular

Target
2009-10

Achievement
2008-09
10

2009-

%Ach.

+/- % over

Over
target

last year

Paneer (MT)

108.000

95.577

106.637

99

+16

Curd (MT)

144.000

115.57

172.829

120

+50

8
Lassi
(Namkeen)
Ltrs.

18000

16411

197585

1098

+1204

Kheer (MT)

18.000

15.446

17.236

96

+12

Sale of Paneer

Sale of curd:

Sale of Lassi Namkeen:

Page | 41

Sale of kheer:

3. Milk Union wise & Branch sale office wise sale of Consumer Pack Ghee
and Table Butter for the year 2009-10

Particular

Ghee (MT)

Target
2009-10

310.000

Achievement
2008-09
10
370.70

2009-

%Ach.
Over
target

+/- %
over
last year

376.400

+21

+2

35.500

-58

-28

0
Table Butter
(MT)

Page | 43

84.000

49.100

4.

Sale of tetra pack products, PIO, & Ice Cream for the year 2009-10

Particular

Target
2009-10

Achievement
2008-09

200910

Rassila 200 Ml.

103680

Pkts.

%Ach.

+/- % over

Over
target

last year

567081

624807

60

+5

Lassi 200 Ml. Pkts. 234900

140130

213219

91

+52

Pio Bottles 200 Ml

391200

243840

324300

83

+33

Ice-Cream Ltrs.

52300

32373

48545

93

+50

Target for the year 2009-10 is 1036800

Target for the year 2009-10 is 234900

Page | 45

Target for the year 2009-10 is 391200

Target for the year 2009-10 is 52300


Overview of sale of milk and milk product in year 2009-10

Sr. Particulars
No.

Cumulative
upto March,
2009

1.

Average city Supply 20624


(LPD)

2.

Fresh Products

Paneer (MT)

Cumulative %age increase and


upto March, decrease
2010
24124

+17.0

95.577

106.637

+16.0

Curd (MT)

115.578

172.829

+50.0

Kheer (MT)

15.446

17.236

+12.0

Lassi (Namkeen) Ltrs.16411

197585

+1204

Tetra Pack/IceCream

Rassila 200 Ml. Pkts. 567081

624807

+05.0

Lassi 200 Ml.

213219

+52.0

Pio Bottles 200 Ml.

324300

+33.0

Ice-Cream

Ltrs. 32373

48545

+50.0

Products (MT)

Ghee

370.7

376.4

+2.00

WMP

201.9

574.6

+185.0

Table Butter

49.1

35.5

-28.0

Panjiri

1519

1483

-2.0

Ptks. 140130
243840

CHAPTER VIII
RESEARCH METHODOLOGY
For achieving the objectives of study, survey was conducted. For survey,
personal interviews of the Management & workers were undertaken. Personal
interviews of official working in the milk plant was selected as the mode of survey
Page | 47

to make the study more meaningful & so that maximum information could be
collected. For conducting the personal interviews of the workers, a questionnaire
was made. The questionnaire was structured with open ended & close ended
questions.
The Shopkeepers were selected as respondent to the questions as it was easy to
access them and they can provide valuable information in bulk and systemize form.
We try to identified there taste, preference, various aspects whom they give
weightage while selecting a particular brand to deal in and attempts were also
made to check there knowledge about different milk brand, different products
made by verka, and the storage condition of milk and milk made products.
USEFULNESS OF STUDY
The study can be useful to the company as they might come to know about
the importance of brand image and marketing strategies in the Verka Milk Plant.
Milk plant can also track down the various topicAnd also the new brands entering
into the market in dairy industry there market sahre and impact on consumer.
The study can be of great importance to the company.
Sample Size:
I have covered 50 shop keepers in Bathinda city
Types of Data:
I have used printing as well as secondary data. Some data is been
taken from internet, some from MILKFED literature and some is gathered
through questionnaire.
LIMITATIONS OF STUDY
1. Due to the limitation of time and financial resources it was not possible
to collect information from the whole population so the sample statistic
may vary from population.
2. The information provided by the shopkeeper is not definitely true.

3. The samples of shopkeepers may not be representative of the total


population size.
4. The shopkeepers hesitate disclosing the true facts like their core
preference to profit margin in dealing so the result may vary from
original somewhat.
5. There is no measure to check out whether the information provided by
the shopkeeper is correct or not because significant part of the
information is based on the judgement of shopkeeper not on and
mathematical calculation.

Page | 49

Analysis of information:

Q.1 In how many Milk Brands do you deal in?


Verka
Baba
Milk

Saras
Today Milk
Shud
Others,Specify

24
18
6
25
3
1

Q2. Which is the leading brand?

Page | 51

Verka
Baba Milk
Saras
Today Milk
Shudh

22
9
4
16
2

Q3. Why do u prefer this particular brand over others?

Price
Quality
Taste
Service
Reguar Supply
All

1
11
4
5
18
13

Q4. Do you switch over to other brands?

Yes
No

Page | 53

14
36

Q5. Why do you switch over?

Price
Taste
Availability
Profit Margin

1
2
8
5

Q6. Do you have faith in Verka products?

Yes
No

Page | 55

40
10

Q7. If, dont like Verka products, please specify reasons?

It is not available at all times


Cost is higher than others
Quality is not better.
Profit margin is very low

16
1
7
11

Q8 Are you aware about the following Verka product for different
segment/consumer?

Page | 57

Milk
Ghee
Skimmed Milk Powder
Rasila
Table Butter
Paneer
Khoa
Curd
Milk Cake

50
50
25
43
41
48
37
48
40

Q9. Are you aware of the shelf life of Verka product?

Yes
No

Page | 59

43
7

Q10. Are you aware about the storage condition of Verka milk?

Yes
No

40
10

Q.11 Source of awareness to Verka?

Plant
Advertisement
Dealers
Milk van
Other shopkeepers

Page | 61

27
1
11
5
11

Q.12 Advertisement of Verka is ?

Sufficient
Not Sufficient

5
37

Q. 13 Which media influence most in advertisement?

Page | 63

T.V.
Signboards
Banners
Wall paintings
Pamphlets
News paper

11
16
12
5
2
3

Q.14 Effect of advertisement on sales?

No effect
Nominal effect
Some what
Great

1
11
11
27

Q.15 How can Verka increase its sale?

Page | 65

On time delivery
Quality
Price
Advertisement

16
10
16
7

CHAPTER IX

SUGGESTIONS & RECOMMENDATION


Though the survey revealed that rural people like Verka's products to a great extent
and there is more demand of Verka brand but then also some people want a change
in its price, quality, quantity and some in availability. Therefore, to make its
customers fully satisfied, some measures should be taken which will also add to its
sales and improve its position in the rural market. So, there were some suggestions
given by the people which are summed up as follows:a)

Increase in profit margin:Generally, shopkeepers are not satisfied with the prices of 'Verka products'.

They feel the products are bit expensive & provide a very little profit margin.
Some other dairy brand like Baba milk, Today milk give big share of M.R.P. as
profit margin compare to verka thus we should try to increase the profit margin. So
that market share of verka may increase and we could dominate the market.
b)

Distribution System should be improved:Shopkeepers of large area are not satisfied with the distribution system. So,

distribution system should be improved and verka should maintain its access even
to small shopkeepers.
c)

Lack of Advertisement:-

Page | 67

Significant no of shopkeepers

have also complained about the

advertisement of the brand Verka. It should be made popular through more and
more advertisements and schemes so as to attract people of all age groups. More
hoardings should be put in villages and with the help of word of mouth more
awareness about products should be given.
d)

Availability :The products of Verka should be easily available in societies. There are

some area where Verka products are not available easily in societies. Therefore,
Verka should expand its market in rural area, so that products are available easily.
More variety of products should be send to the societies.
e)

Communication and soft skill training:- Some dealers complaint about

the behavior of delivery boys. They are the face of the company need to provide
proper training that who to deal with the shopkeepers and get work done.

CONCLUSION

Working at Verka Milk Plant, Bathinda gave me an opportunity to apply my


skills and knowledge, which I had gained previously.
It gave me an opportunity to see working an organization and to be a part of
it. Marketing Research Project on Products and market share of verka provide
me an opportunity to deal with real time problems in day to day working of
organization. Working with the other management students from various college
and university give me a chance to learn a lot from them.
It was an amazing experience with learning all the way, which helped me to
brush up my knowledge and skills.

BIBLIOGRAPHY
Page | 69

BOOKS
KOTHARI CRS,
RESEARCH METHODOLOGY Second Revised Edition
Publishers-New Age International (P) Ltd

NEWSPAPERS
1. AJIT
2. THE INDIAN EXPRESS
3. DAINIK JAGRAN

WEBSITES
1. www.milkfed.nic.in
2. www.milffed.org
3. www.indiaagronet.com/indiaagronet/Dairy.htm
4.

www.punjabgovt.govt.in/government/milkfed.htm

5. www.hindu.com/thehindu/2001/10/11/stories/0611000c.htm

I Gagandeep Singh hereby declare that the information submits in


questionnaire will be used only for research purposes not to serve any legal or
other measures
Consumer Taste & Preferences..
Q.1 In how many Milk Brands do you deal in?
Verka
Baba Milk
Saras
Today Milk
Shudh
Others,Specify________________
Q2. Which is the leading brand?
Verka
Baba Milk
Saras
Today Milk
Shudh
Q3. Why do u prefer this particular brand over others?
Price
Quality
Taste
Service
Regular Supply
All
Q4. Do you switch over to other brands?
Yes
No

Page | 71

Q5. Why do you switch over?


Price
Taste
Availability
Profit Margin

Q6. Do you have faith in Verka products?


Yes
No
Q7. If, dont like Verka products, please specify reasons?
It is not available at all times
Cost is higher than others
Quality is not better.
Profit margin is very low
Awareness and Knowledge.
Q8 Are you aware about the following Verka product for different
segment/consumer?
Milk
Ghee
Skimmed Milk Powder
Rasila
Table Butter
Paneer
Khoa
Curd
Milk Cake
Q9. Are you aware of the shelf life of Verka product?

Yes
No
Q10. Are you aware about the storage condition of Verka milk?
Yes
No

Media & Advertisement


Q.11 Source of awareness to Verka?
Plant
Advertisement
Dealers
Milk van
Other shopkeepers
Q.12 Advertisement of Verka is ?
Sufficient
Not Sufficient

Q. 13 Which media influence most in advertisement?


T.V.
Signboards
Banners
Wall paintings
Pamphlets
News paper
Q.14 Effect of advertisement on sales?
Page | 73

No effect
Nominal effect
Some what
Great

Feedback & Suggestion.


Q.15 How can Verka increase its sale?
On time delivery
Quality
Price
Advertisement
Any, Suggestion.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
___________________________
Respondents Particular..
Name:

________________________

Contact

No._______________________
Address:___________________________________________________________
__________________________________________________________________
__________________