A MAJOR PROJECT REPORT

ON
Consumer

Satisfaction from Mother Dairy Product Offerings

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF

THE DEGREE OF BACHELOR IN BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF:

Mrs. Pooja Kalra Jain
Assistant Professor, RDIAS
SUBMITTED BY:
Name of the Student: Akash Sharma
Enrollment No.: 01015901713
BBA, Semester 6th
Batch 2013 - 2016

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

NAAC Accredited, A Grade
Category A+ Institute, An ISO 9001: 2008 Certified Institute
(AICTE Approved, Affiliated to GGSIPU)
2A & 2B, MadhubanChowk, Outer Ring Road, Phase-1, Delhi-110085
Phone: 011-27864596, 27867301 Fax: 011-27867212
E-mail: admin@rdias.ac.in, Website: www. Rdias.ac.in
Member of AMDISA, AIMA, CSI, CII, DELNET, FICCI, TiE-Delhi NCR

TABLE OF CONTENT

S.NO.

Particulars

Page No.

1.

Students declaration

2.

Certificate of Guide

3.

Acknowledgement

4.

Chapter 1-Plan of the Study

6-17

1.1 Introduction of the topic

1.2 Objectives of the study
1.3 Literature review
5.

Chapter 2- Company Profile

18-31

6..

Chapter3-Research Methodology

32-38

3.1Research methodology of the study

3.2Source of data collection
3.3 Method of data collection

7.

Chapter 4-Data Analysis & Interpretation

39-50

8.

Chapter 5-Findings & Conclusions

51-53

9..

Chapter 6-Suggestion/ Recommendation

54-56

10.

Bibliography

57

11.

Annexure- questionnaire

58-59

STUDENTs DECLARATION

This is to certify that I have completed the Project titled Consumer Satisfaction of Mother
Dairy under the guidance of Mrs.Pooja Kalra Jain in the partial fulfillment of the
requirement for the award of the degree of Bachelor in Business Administration from
Rukmini Devi Institute of Advanced Studies, New Delhi.
This is an original work and I have not submitted it earlier elsewhere.
Name of the Student- Akash Sharma
Enrollment No. 01015901713
Class & Section- BBA(M) Sem. 6

CERTIFICATE OF GUIDE
This is to certify that the project titled Consumer Satisfaction of Mother Dairy is an
academic work done by Akash Sharma submitted in the partial fulfillment of the
requirement for the award of the degree of Bachelors in Business Administration from
Rukmini Devi Institute of Advanced Studies, New Delhi. under my guidance and direction.

To the best of my knowledge and belief the data and information presented by him in the
project has not been submitted earlier elsewhere

Name of the Faculty- Mrs. Pooja Kalra Jain

Designation of the Faculty- Assistant Professor, RDIAS

ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to Rukmini Devi Institute Of Advanced
Studies, GGSIP University, New Delhi for imparting us very valuable professional training in
BBA.

I pay my gratitude and sincere regards to Mrs. Pooja Kalra Jain, my project Guide for
giving me the cream of her knowledge. I am thankful to her as she has been a constant source
of advice, motivation and inspiration. I am also thankful to her for giving her suggestions and
encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and
library staff for providing me opportunity to utilize their resources for the completion of the
project.
I am also thankful to my family and friends for constantly motivating me to complete the
project and providing me an environment which enhanced my knowledge.
Name of the Student- AKASH SHARMA
Enrollment No. 01015901713
Class & Section- BBA- VI Morning Shift

CHAPTER 1

PLAN OF THE STUDY

1.1 Introduction
The dairy sector in the India has shown remarkable development in the past decade and India has
now become one of the largest producers of milk and value-added milk products in the world.
The dairy sector has developed through co-operatives in many parts of the country. During 199798, the States (Delhi-Haryana-Uttar Pradesh) had 17574 million tones production capacity,
which rose to 29719 million tons by the year 2012. In addition to many processing plants, many
government co-operative societies and chilling centers have being made.

About the Indian dairy Industry

In India, the dairy sector plays an important role in the countrys socio-economic development
and constitutes an important segment of the rural economic.
Dairy industry provides livelihood to millions of homes in village, assuring supply of quality of
milk and milk products to both urban and rural areas. With view to keeping pace with the
countrys increasing demand of milk and milk products, the industry has being growing rapidly.
According to research report Indian Dairy Industry Analysis India is worlds largest milk
producers accounting of around 17% of the global milk production. Besides, India is also one of
largest consumers of milk and milk products. Due to rich nutritional qualities, the consumption
of dairy product has being growing exponentially in the country, and considering such facts and
figures, my study anticipates that the milk production in India will grow at a CAGR of around
4% during 2012 to 2015.
With rising use of dairy product, the secondary market of dairy product has been flourishing, my
report observed.
Covering the necessary aspects of the Indian dairy industry, the study facilitates knowledge about
its current market scenario and future growth. Analyzing the past and current state of the
industry, the report tries to find out how trends like the entry of international companies and
packaging are attracting the consumers and heeding towards further growth in the market. This

way, it present a clear picture of the direction, in which the industry is likely to proceed in the
coming years.
The government is taking several initiatives and running plans and programs like National Diary
Plan and Intensive Dairy Development Program to meet the growing demand for milk in the
country. Our report talks about such schemes, and government regulations to present an objective
and balanced picture of the industry.
The study also discusses the opportunities and strengths of the dairy market in a complete SWOT
analysis, and provides an insight into the competitive landscape. We hope that our
comprehensive research will help clients align their business strategies as per market dynamics,
and make sound investment decisions.

ABOUT NDDB

National Dairy Development Board (NDDB) was founded to replace...

Exploitation with empowerment.
Tradition with modernity.
Stagnation with growth.

An instrument for the development of Indias rural transforming dairying into an instrument for
the development of Indias rural people. Prior to NDDB, the milk market was vastly governed by
local private dairy and these dairies were neither producing milk nor they were animal breeders
and hence law of demand and supply was unheard by those whose intentions were purely to
make more money from both the sides that is from producers of milk (farmers) and consumers
at large. Establishment of NDDB broke that spell and traders were side lined in due course.
The National Dairy Development Board was created in promote, finance and support producerowned and controlled organizations. NDDBs efforts are co-operative principles and the Anand
Pattern of Co-operation
Philosophy of NDDB
Co-operation is the preferred form of enterprise, giving people control over the
resources, through democratic self governance.
All beneficiaries, particularly women and under privileged, must be involved in
co-operative management and decision making.
Technological and evolution search for better way to achieve the objective in the
dynamic market.
The NDDB was created in 1965, fulfilling the desire of the Prime Minister of India the late Lal
Bahadur Shatri to extend the success of the Kaira Co-operative Milk Producers union (Amul)
to other parts of India.

That success combined the wisdom and energy of farmers with professional management to
successfully capture liquid milk and milk product markets while supporting farmer investment
with inputs and services.
NDDB began its operations with the mission of making dairying a vehicle to a better future for
millions of grassroots milk producers. The mission achieved thrust and direction with the
launching of Operation Flood, a programme extending over 26 years and which used World
Bank loan to finance Indias emergence as the worlds largest milk producing nation. Operation
Floods third phase was completed in 1996 and has to its credit a number of significant
achievements.
As on March 2001, Indias 96,000 dairy co-operatives integrated through a three tier cooperative structure The Anand Pattern, owned by more than ten million farmers, procure an
average of 16.5 million litres of milk every day. The milk is processed and marketed by 170 milk
producers co-operative unions which, in turn, own 15 state co-operative milk marketing
federations.
NDDB also promotes other commodity-based co-operatives, allied industries and veterinary
biological on an intensive and nation-wide basis. Dr. (Ms) Amrita Patel serves as the Chairman
of NDDB; Dr. Varghese Kurien was the founder Chairman.

ABOUT OPERATION FLOOD

Introduction to Operation Flood

Operation Flood has been one of the worlds largest rural development programmes. It was
started by Indias National Dairy Development Board (NDDB) in 1970. One of the largest of its
kind, the programme objective was to create a nationwide milk grid.
Operation Flood strategy
The bedrock of Operation Flood has been village milk producers cooperatives, which procure
milk and provide inputs and services, making modern management and technology available to
members. Operation Floods objectives included:

Increase milk production (a flood of milk)

Augment rural incomes

Reasonable prices for consumers

Programme Implementation
Implementation of Operation Flood
Operation Flood was implemented in three phases.
Phase I
Phase I (1970-1980) was financed by the sale of skimmed milk powder and butter oil gifted by
the European Union then EEC through the World Food Programme. NDDB planned the
programme and negotiated the details of EEC assistance.
During its first phase, Operation Flood linked 18 of Indias premier milk sheds with consumers
in Indias four major metropolitan cities: Delhi, Mumbai, Kolkata and Chennai.
Phase II
Operation Floods Phase II (1981-85) increased the milk sheds from 18 to 136; 290 urban
markets expanded the outlets for milk. By the end of 1985, a self-sustaining system of 43,000
village cooperatives covering 4.25 million milk producers had become a reality. Domestic milk
powder production increased from 22,000 tons in the pre-project year to 140,000 tons by 1989,

all of the increase coming from dairies set up under Operation Flood. In this way EEC gifts and
World Bank loan helped to promote self-reliance. Direct marketing of milk by producers
cooperatives increased by several million litres a day.
Phase III
Phase III (1985-1996) enabled dairy cooperatives to expand and strengthen the infrastructure
required to procure and market increasing volumes of milk. Veterinary first-aid health care
services, feed and artificial insemination services for cooperative members were extended, along
with intensified member education.
Operation Floods Phase III consolidated Indias dairy cooperative movement, adding 30,000
new dairy cooperatives to the 42,000 existing societies organised during Phase II. Milk sheds
peaked to 173 in 1988-89 with the numbers of women members and Womens Dairy Cooperative
Societies increasing significantly.
Phase III gave increased emphasis to research and development in animal health and animal
nutrition. Innovations like vaccine for Theileriosis, bypass protein feed and urea-molasses
mineral blocks, all contributed to the enhanced productivity of milch animals.
From the outset, Operation Flood was conceived and implemented as much more than a dairy
programme. Rather, dairying was seen as an instrument of development, generating employment
and regular incomes for millions of rural people.
Achievements of Operation Flood

Operation Flood can be viewed as a twenty year experiment confirming the Rural Development
Vision (World Bank Report 1997c.)
1.

It resulted in making India the largest producer of milk and milk products, and hence is
also called the White Revolution of India. It also helped reduce malpractices by milk traders
and merchants.

2.

This revolution followed the Indian Green Revolution and helped in accelerating organic,
decentralized development across the board, alleviating poverty by offering gainful
employment, and also providing access to better nutrition.

3.

Operation Flood has helped dairy farmers direct their own development, placing control
of the resources they create in their own hands.

4.

A National Milk Grid links milk producers throughout India with consumers in over 700
towns and cities, reducing seasonal and regional price variations while ensuring that the
producer gets fair market prices in a transparent manner on a regular basis.

1.2 Objectives of study

To find the acceptability of the product offerings by Mother Dairy.
To explore the reasons for consumers switching over to competitors product.
To study the level of consumers satisfaction of the product.
To determine the factors influencing buying decisions of consumers.

1.3 Literature review

Consumer satisfaction an overview
Whether the buyer is satisfied after purchase depends on the office performance in relation to
the buyers expectations. In general satisfaction is a persons feeling of pleasure or
disappointment resulting from comparing a product perceived performance in relation to his/her
expectations.
As this definition makes clear, satisfaction is a function of received performance and
expectation. If the performance falls short of expectations the consumer is dissatisfied. If the
performance matches the expectations, the consumer is satisfied. If the performance exceeds
expectations the customer is highly satisfied or delighted.
Many companies are aiming for satisfaction because customers who are just satisfied still find it

easy to switch when a better offer comes along. Those who are highly satisfied are much less
ready to switch. High satisfaction or delight creates an emotional affinity with the brand, not
just a rational preference. The result is high customer loyalty. For consumer centered companies
consumer satisfaction is both a goal and a marketing tool. Companies that achieve high
consumer satisfaction rating make sure that their target market knows it.

Buying motives
A person has many needs at a given time. Some needs are biogenic need while some others are
psychogenesis.
Biogenic needs: Needs which arise from psychological state of tension like hunger,
discomfortable etc.
Psychogenic: Needs, which arise from psychological state of tension like need for recognition,
esteem, belongingness etc.
A need becomes a motive when it is aroused to a sufficient level of intensity. So a motive can be
defined as a need that is sufficiently pressing to drive the person to act motive which induce a
person to purchase a product are called buying motives.
Generally individuals are motivated to buy because of external and internal motive. External
motives are outside one for eg. Income, culture, occupation etc. Internal motives are those
which originated in the mind of people. They may be either psychogenic and psychogenic.
Buying motives can be classified as
Ecorelated motives: For example the desire for a better self image or a desire for a state among
ones peers.

Emotional motives: For example attraction for opposite sex, love and affection for others, social
assistance, satisfaction of pride.
Rational motives: motives that generate because the feeling of gaining economic, efficiency and
depended.
Patronage motives: The motives, which explain why a consumer purchases a product only from
one seller. Important patronage motives are price, location, quality, service etc.
The motives which express why consumers purchase the product only from one seller.
Buying motives can be explained on the basis of the following theory of motivation.
1, Maslows need hierarchy theory
a, Psychological need(food, water)
b, Security and safety needs(security & protection)
c, Social needs(sense of belongings, love)
d, Esteem needs(self esteem, recognition)
e, Self actualization need(self development& realization)
2, Herzberg two factor theory
Dissatisfiers: That goes dissatisfaction and satisfiers that goes satisfaction.
Tools for measuring consumer satisfaction
1, Complaint and suggestion system
A consumer centered organization makes it easy for its consumers to delivery suggestions
and complaints. This information on flow provides the company with man good ideas and
enables than to act more rapidly to the resource problems.

2, Consumer satisfaction surveys

Certain consumers cannot use complaint cell a measure of consumer satisfaction.
Responsive consumers obtained a direct measure of consumer satisfaction by conducting
periodic surveys.
3, Ghost shopping
Companies can hire persons to post as potential buyers to report their finding on strong and
week points, the experiences in being company and competitive products.
4, Cost customer analysis
Customer should contact who have stopped buying or who have switched to other supplies
to learn why this happened.

CHAPTER-2

COMPANY PROFILE/
INDUSTRY PROFILE

MOTHER DAIRY

"Mother Dairy" is the single largest brand of milk in India as well as in Asia, marketing about
4.45 million litres of milk per day. Mother Dairy commands 62% market share in the organized
sector in and around Delhi, primarily because of consistent quality and service whatever be the
crisis - floods, transport, strike, curfew etc. Mother Dairy, Patparganj, Delhi, is presently
manufacturing & selling around 8.5 lakh litres of toned milk through bulk vending shops.
Mother Dairy, Delhi is an IS/ISO - 9001:2000 and Hazard Analysis Critical Control Points
(HACCP) and IS-14001:1996 Environment Management System (EMS) Certified organisation.
Mother Dairy was the first Dairy in the country to implement ISO-14031
(Environment Performance Evaluation) project. The companys Quality Assurance Laboratory is
ISO/IEC- 17025:1999 certified by NABL (National Accreditation Board for Testing and
Calibration Laboratory), Department of Science & Technology, India.
This provides assurance to consumer in respect of Quality and Safety of products manufactured
and marketed by Mother Dairy.
The National Dairy Development Board (NDDB) commissioned Mother Dairy in the first phase
of Operation Flood in 1974. Considering the success of Dairy industry NDDB established Fruit
& Vegetable Project in Delhi in 1988 with "SAFAL" as its umbrella brand.
With a view to separating the commercial activities from developmental activities, the NDDB
merged Mother Dairy and the Fruit & Vegetable project into a wholly owned company named
Mother Dairy Fruit & Vegetable Ltd (MDFVL) in April 2000. This becomes the holding
company of Mother Dairy India Ltd (MDIL) a marketing company and Mother Dairy Foods
Processing Ltd (MDFPL) a processing company. MDFPL is a multi unit company, with units at
various locations in India. Mother Dairy, Delhi is one of the units of MDFPL.
The company is a highly trusted house hold name for its wide range of milk products like Milk,
Flavoured Milk, Ice-Cream, Dahi, Lassi, Table Butter, Dairy Whitner, Ghee etc. The application
for the award is being made for Mother Dairy, Delhi unit.
Mother dairy has taken up the concept of Total Productive Maintenance (TPM) wholeheartedly.
The number of employees involved in KAIZENS and the no. of KAIZENS per employee are
very encouraging. Mother Dairy is a member of CII-TPM Club and the KAIZENS done by
Mother Dairy employees have been selected and presented in 2nd, 3rd, 4th and 5th National
Kaizen Conferences held from time to time during the last three years. Our TPM efforts have

resulted in increase in MTBF and decrease in MTTR, quality improvement, Cost reduction and
reduction in accidents.
Mother Dairy has received "Best Productivity Performance" award for three consecutive years
starting from1987-88 to1989-90 and again from1995-96 to1997-1998 from National productivity
Council and a commendation Certificate for Rajiv Gandhi National Quality Award, National
Energy Conservation Award - 2004, Oil and Gas Conservation Award - 2004, Indian Innovation
Award - 2004 and Safety Initiative Award - 2005.
Over the years, Mother Dairy has not only served the daily need of milk of the consumers of
Delhi, it has also extended its milk to other States like Haryana, Uttar Pradesh, Maharashtra,
Andhra Pradesh & Gujarat and is expanding its wings rapidly to serve the masses.
Strategically located Mother Dairy booths across Delhi and NCR make it convenient for you to
pick up your daily requirement of Milk, Flavoured milk, Butter, Dahi, Lassi, Cheese,
Chaas.mouth watering Ice Creams.
The focus is on key markets for each of the categories. In the curd category, they have been in
Delhi for a while now and launched in Mumbai just three months back. They hold a 60 per cent
market share in Delhi, but it is too soon to gauge where we stand in Mumbai.
Objectives and Business Philosophy of Mother Dairy
The main stakeholder of Mother Dairy was the farmer member for whose welfare it existed.
Unlike other organizations, their objective is not to maximize the profit. They are more interested
in giving the best price for the farmers for their milk than in making a large profit. Thus they
look at the price given to their suppliers as not a cost but as an objective.
Mother Dairy had, as its main objective, carrying out activities for the economic development
of agriculturists by efficiently organizing marketing of milk and dairy produce, agricultural
produce in raw and/or processed form and other allied produce.
This was to be done through:
Common branding
Centralized marketing
Centralized quality control
Centralized purchases and

 Pooling of milk efficiently

Mother Dairy had declared, as its business philosophy, the following:
ensure that milk producers and farmers regularly and continually receive market

prices by

offering quality milk, milk products and other food products to consumers at competitive prices
and; uphold institutional structures that empower milk producers and farmers through processes
that are equitable.
The biggest strength of Mother Dairy was the trust it had created in the minds of its consumers
regarding the quality of its products.
NDDB and its brand Mother Dairy stood for guaranteed purity of whatever products it had
produced. Adulteration was simply not done in any of its products. In India, where such trust was
hard to come by, this could provide a central anchor for
Mother Dairys future business plans. For more than 40 years' Mother Dairy helping to create a
national network has been adapted and extended to other commodities and areas. Their constant
effort to learn and to enrich experience is central to their approach and capacities.
In times to come, Mother Dairy shall strive to become a leading player in the food industry in
India.

The Process Flow of the Mother Dairy

Clarification

Standardization

Processed Milk

Pasteurization

Homogenization

Deep Chilling

Dispatch

Raw
.

Raw Milk Reception:

Raw milk received through insulated road/rail tankers at a very low temperature thus retaining
the freshness of milk. The milk goes for more than 15 stringent quality tests before it is accepted
for the processing of milk.
Milk achieved from individual producers is checked for all basic quality parameters meeting the
company specification and required norms at respective collection and chilling centres.
Milk is then supplied to the dairy units through insulated milk tankers at <4 degree C.

Processing of Milk:
Processing of milk is done in basically 4 steps

Clarification
Standardization
Homogenization
Pasteurization

Clarification:
The chilled milk from the silos goes to the clarifier after pre-heating. The clarifier spins the milk
at very high speed, removing all the dust particles that are invisible to naked eyes.

Standardization:
Milk from different breeds of cow and buffalo may vary in its composition. Hence, to make Milk
uniform in composition, before supply to the market, it is standardized by raising or lowering its
fat and SNF percentage present in the milk to a desired level, so as to deliver the milk to
consumers as per prescribed norms of FSSAI.

Homogenization:
In this process, the milk is processed at very high pressure during which the large fat globules
presently in milk are broken down into tiny droplets. The milk fat gets evenly distributed in the
milk and milk become whiter and thicker. Milk is homogenized for consumers who do not like
cream layer on top. Homogenization improves Palatability of milk and is easily digestible.
Pasteurization:
The milk is then pasteurized, named after Louis Pasteur, a French Scientist who invented the
process to use in wine. Pasteurization was first applied by Dr. Soxhiet of Germany. This involves
heating of milk to 72 degree Celsius for 15 second and then cooling it down to 4 degree Celsius.
The process kills all pathogenic bacteria present in the milk making. It makes milk safe for
consumption. Pasteurization, unlike boiling does not affect the nutritional value of the milk.

ABOUT FUNCTIONAL DEPARTMENTS

Production Department is most important part in any organization, firm, company or cooperative sectors. Production can be made for the middle users or for the end-users (direct
consumers). Production do the main work of converting raw material into semi-finished or
finished goods, it depends on what kind of production the organization is doing.
In the context of Mother Dairy, people have endless demand for milk and milk products.
MOTHER DAIRY undertakes the procurement of milk and its production likewise satisfying the
needs and demand of people. It estimates the demand and accordingly production is done for
which arrangement of Raw material, finance and provision for selling is made by MOTHER
DAIRY.
The Production Department is interrelated with the Personnel, Finance, and Marketing
Department. On an average 30 million litres of milk is processed by Mother dairy.
Major Products of Mother Dairy:
Following are the some milk products that the Mother Dairy products and sale in different areas
of Delhi-NCR.
Full Cream Milk
Standardised Milk
Toned Milk
Double Toned Milk
Skimmed Milk

Flavoured milk pouch

Flavoured milk bottles

Goras chhas
Jira Chhas
Dahi
Cheese

Activities of Production Department:

8 lakh litres per day

10.75 lakh litres per day
4.36 lakh litres per day
2 lakh litres per day
4.89 lakh litres per day

33149 pouches per day

31114 bottles per day

14,39,04 pouch of 500ml per day

14,16,552 pouch of 200ml per day
2,80,711 pouches of 200ml per day
N/A

There are mainly Eight (8) activities done by the Production Department. They are as
follows:

1. Raw Material Receiving Dock

2. Clarification
3. Homogenization
4. Pasteurization
5. Chilling
6. Processed Milk
7. Deep Chilling
8. Dispatch In Insulated Tankers
Mother Dairy has set up a modern plant for the production process. It has established its plant in
a modern high tech style which functions nearly 80% automatically.

Facts and Figures

Milk production in India

350
300
250
200
Production (Million Tonnes)

150

Per Capita Avaiblity

(gms/day)

100
50
0

SOURCES: Department of Animal Husbandry, GoI

Conclusion:
Rise In total production capacity- 5%
Rise in Consumption (gms/day)- 3.55%

Production by Mother Dairy

Sr No

Operational States

Delhi-NCR

Quantity (Per Day)/(Million

ltrs)
30

2
3
4
Total

Saurashtra
Mumbai
Hyderabad-Haryana-Uttar Pradesh

6.5
7.75
2.2
46.45

Comparison Chart
Total Contribution by Mother Dairy in India-2012

Million Liters

Mother Dairy
Amul

Conclusion:

68 % of the Indian market is dominated by unorganised players

Mother dairy can use this as an opportunity, and plan strategies to capture the market.

Per capita monthly Consumption & Expenditure in Milk & Milk Products
NSS
ROUND
Rural

MILK & MILK PRODUCT

25th (1970-1971)
3.03

Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural

5.01
27th (1972-1973)
3.22
5.91
32nd (1977-1978)
5.29
9.16
38th (1982)
8.45
15.15
42nd (1986-1987)
13.48
23.32
43rd (1987-1988)
13.63
23.83
44th (1988-1989)
15.65
26.74
45th (1989-1990)
18.35
29.53
46th (1990-1991)
19.04
32.37
47th (July-Dec 1991)
21.90
37.21
48th (Jan- Dec 1992)
23.00
42.00
49th (Jan-June 1993)
23.00
41.00
50th (July 1993-June 1994)
27.00
45.00
51st (July 1994-July 1995)
27.00
49.00
52nd (July 1995-June 1996)
32.38
56.45
53rd (Jan-Dec 1997)
39.31

Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban
ROUND
Rural
Urban

62.75
54th (Jan- June 1998)
36.54
64.63
56th (July 2000- June 2001)
42.97
75.90
57th (July 2001-June 2002)
41.91
75.82
58th (July 2002- Dec 2002)
45.34
78.19
59th (Jan 2003- Dec 2003)
44.69
80.03
60th (Jan 2004-June 2004)
47.60
82.98
61st (July 2004-June 2005)
47.31
83.30
66th (July 2009-June 2010)
80.55
137.01

Sources: Levels And Pattern of consumer expenditure, various issues, National Sample Survey
Organisation, Ministry of Statistics & Program implementation, GOI.
Thus the above table shows the increase in consumption of milk and milk Products, in Rural and
Urban India both. Per capita monthly consumption and expenditure in milk and milk products
have risen since 1970 to till date, thus a major opportunity for milk industry as well as Mother
Dairy.

Graphical representation from 60th National sampling survey to 66th Nationals sampling survey to
give clear cut idea of the increase in consumption and spending in rural and urban India.

160
140
120
100
Rural Rs

80

Urban Rs
60
40
20
0
Round 60th

Round 61st

Conclusion:
Rural increases from 60th to 66th round is by 69.22%
Urban increase from 60th to 66th round is by 65.11%

Round 66th

CHAPTER 3

RESEARCH
METHODOLOGY

3.1 Research methodology of the study

Research methodology is a process to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. Why a research study has

been undertaken, how the research problem has been defined. In what way and why the
hypothesis has been formulated, what data have been collected and particular method has been
adopted. Why particular technique of analyzing data has been used and a host of similar other
questions are usually answered when we talk of research methodology concerning a research
problem or study. A research design serves as a bridge between what has been established (the
research objectives) and what is to be done, in the conduct of the study. In this project research
done is of conclusive nature. Conclusive research provides information that help in making a
rational decision. Descriptive design was choose to measure the satisfaction level of customers
on the basis of different parameters such as quality, price, features, technology, after sale services
etc. This design ensured complete clarity and accuracy. It also ensured minimum bias in
collection of data and reduced the errors in data interpretation. Statistical method was followed
in this research because the data was of descriptive nature and it also enabled accurate
generalizations.

The researcher has used descriptive methodology.

Descriptive methodology is also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. However, it does not answer questions about
e.g.: how/when/why the characteristics occurred, which is done under analytic research.
Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, Descriptive research cannot be used to create acausal relationship,
where one variable affects another. In other words, descriptive research can be said to have a low
requirement for internal validity.
The description is used for frequencies, averages and other statistical calculations. Often the best
approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative
research often has the aim of description and researchers may follow-up with examinations of
why the observations exist and what the implications of the findings are.
3.1.2 Research Design:

A research design specifies the methods and procedures for conducting a particular study.
Broadly speaking, there are 3 categories of research design - exploratory, descriptive and casual
research.

An exploratory research focuses on the discovery of ideas and is generally based on

secondary data.

A descriptive study is undertaken when the researcher wants to know the characteristics
of certain groups such as age, educational level, income, occupation, etc.

A casual research is undertaken when the researcher is interested in knowing the cause
and effect relationship between two or more variables.

The type of research used in this study is descriptive research. Following method was adopted
during study.
Review of literature to understand recent development in the field, Defining objective of the
study.
Formation of questionnaire to capture primary data, helped in Analysis and interpretation of
primary data.

3.2 Data Collection Methods:

The information necessary for this research study is collected by tapping primary and secondary
sources. The sources are as follows:
Primary Sources:
a

Questionnaire

Personal interaction

Secondary Sources:
a

Related Information from Internet

Company Reports Books.

Measuring Tools:
The measurement and evaluation of the data is done using statistical tools and techniques such
as simple percentage method, mean, graphical representation with help of data code sheet using
MS Word software.
3.3 Method of data collection
There are two methods of data collection i.e.
1. Primary Method
2. Secondary Method

Primary Method:
In primary data collection, you collect the data yourself using methods such as interviews and
questionnaires. The key point here is that the data you collect is unique to you and your research
and, until you publish, no one else has access to it.
There are many methods of collecting primary data and the main methods include:
i.

Questionnaires

ii.

Interviews

iii.

Focus Group Interviews

iv.

Observation

v.

Case-Studies

vi.

Diaries

vii.

Critical Incidents

viii.

Portfolios

The primary data, which is generated by the above methods, may be qualitative in nature
(usually in the form of words) or quantitative (usually in the form of numbers or where you can
make counts of words used). We briefly outline these methods but you should also read around
the various methods. A list of suggested research methodology texts is given in your Module
Study Guide but many texts on social or educational research may also be useful and you can
find them in your library.
Secondary Method:
All methods of data collection can supply quantitative data (numbers, statistics or financial) or
qualitative data (usually words or text). Quantitative data may often be presented in tabular or
graphical form. Secondary data is data that has already been collected by someone else for a
different purpose to yours. For example, this could mean using:
a.
b.
c.
d.

data collected by a hotel on its customers through its guest history system
data supplied by a marketing organization
annual company reports
Government statistics.

Secondary data can be used in different ways:

i.

You can simply report the data in its original format. If so, then it is most likely that the
place for this data will be in your main introduction or literature review as support or
evidence for your argument.

ii.

You can do something with the data. If you use it (analyze it or re-interpret it) for a
different purpose to the original then the most likely place would be in the Analysis of
findings section of your dissertation. A good example of this usage was the work on
suicide carried out by Durkheim. He took the official suicide statistics of different
countries (recorded by coroners or their equivalent) and analyzed them to see if he could

identify variables that would mean that some people are more likely to commit suicide
than others. He found, for example, that Catholics were less likely to commit suicide than
Protestants. In this way, he took data that had been collected for quite a different purpose
and used it in his own study but he had to do a lot of comparisons and statistical
correlations himself in order to analyze the data.
The researcher has used the both primary and secondary methods of data collection.
In this research, the researcher has used questionnaire method. If one wishes to find the opinion
of an individual or a group of individual(s), the questionnaire techniques for collecting data are
weighted more than any other method.
In this method, questionnaires were distributed to respondents and they were asked to answer
question in the questionnaire. The questionnaire was properly structured because the questions
that it contained were arranged in a specific order, besides every question and were asked in a
way, logical for the study. No question can be termed as irrelevant.

3.3.1 Sampling Design:

Data source

Primary & Secondary data

Data analysis techniques

Statistical techniques(Pie charts, Tables and Graphs)

Sample size: 50
Population: New Delhi, NCR
Sampling Technique: Simple random Sampling

3.3.2 Limitations of Study/ Method:

Though the research was conducted properly, the probability of errors & biases existed. Some
errors occurred because of certain limitations. These are as follows:
i.

A very short span of time for research.

ii.

People were reluctant to give responses for such type of research.

iii.

People also did not give proper response for questionnaire & interview, because of
lack of interest and time.

iv.

The researcher has honestly and sincerely tried to present the facts and figures, but
some error still might have cropped up.

v.

Not saying in the initial stages, but as e-trade in India is in its early stages, people
were not able to give competitive answers for the questionnaire.

CHAPTER-4

DATA ANALYSIS &

INTERPRETATION

4.1 DATA ANALYSIS & INTERPRETATION

Analysis of the data is very important part of any research. The quality of data collected matters, but what
matters more is the interpretation of that data. This chapter deals with Analysis and Discussions of the findings.
Firstly, data of all the respondents to the interview was compared to give better understanding of the situation.
Then, this comparison was used to achieve the objectives of the research by evaluating them on the basis of
secondary data. Unique personal quotes from respondents were taken as a basis of comparison of the different
views to consolidate it into finding of the research.
To get a more generalized view of the thoughts, mobile dealers were interviewed. These dealers deal in many
brands and have the first hand knowledge of market and consumer perceptions. However, the thoughts still vary
due to personal choices and the type of customers they deal in, which in turn depends on location. To begin with
we will discuss the background of the respondents.

Questionnaire Analysis :
1. Gender
o Male
o Female

what is your gender?

Male
Female

43%
57%

Figure:- 1

From the above chart, it is observed that 57% are Male and 43% are Female.

2.
o
o
o
o

What is your age?

18-25
25-40
40-60
60+

AGE

8%

7%

18-25
25-40
40-60
50%

60+

35%

Figure:-2
From the above chart, it is observed that 50% of the customer are between the age of 18-25, 35%
customer are between 25-40, 8% of the customer are between the age group of 40-60 and
60+aged customer are 7%.

3.
o
o
o

Which product do you prefer most?

AMUL
Mother dairy
Others

Which product do you prefer the most?

4%
amul
44%

mother dairy
others

52%

Figure:-3
From the above chart, it is observed that customer prefer 52% Mother Dairy product whereas
customer prefer 44% AMUL products and 4% other products.

4.
o
o
o
o

Which Mother Dairy product do you prefer the most?

Ice creams
Milk product
Fruit and vegetable
others

Which Mother Dairy product do you prefer the most?

6% 12%
14%

Icecreams
Milkproduct
Fruit and vegetable
others

69%

figure:-4
From the above chart, it is observed that customer prefer 68% Milk Products, 12% Ice Creams ,
14% Fruits and Vegetable and 6% other products.

5. Do you think brand name is important or not?

o Yes
o No

Do you think brand name is important or not?

Yes
No

100%

Figure:-5
From the above chart, it is observed that brand name is very important in our life. So, 100%
customer says brand name is very important.

6.
o
o
o
o
o

Which mother dairy milk product do you prefer the most?

Double toned
Toned milk
Full cream
Skimmed milk
others

which mother dairy milk product do you prefer the most?

8%

Double toned

4%
30%

Toned milk
Full cream
Skimmed milk

30%

others
28%

figure:-6

From the above chart, it is observed that Double Toned and Full Cream are the most preferred
milk of Mother Dairy product with 30%. Toned milk is 28% preferred whereas Skimmed Milk is
8% preferred and Others is just 4%.

7. Do you think SAFAL is successful product of mother dairy?

o Yes
o No

Do you think SAFAL is succesful product of mother dairy?

18%
Yes
No

82%

Figure:-7

From the above chart, it is observed that 82% customer thinks that SAFAL is successful product
of mother dairy whereas, 18% thinks it is not.

8. Overall which one is the best?

o AMUL
o Mother Dairy

o Others

Overall which one is the best?

Amul
42%

Mother Dairy
Others

58%

Figure:-8
From the above chart, it is observed that customer thinks Mother Dairy(58%) is better than
AMUL(42%).

9. Do you think prices of Mother Dairy product are high?

o Yes
o No

Do you think prices of Mother Dairy product are high?

20%

Yes
No

80%

Figure:-9
From the above chart, it is observed that 80%customer thinks that prices of Mother Dairy are
high whereas 20% says no.

10. Do you think Mother Dairy has a better future?

o Yes
o No

Do you think Mother Dairy has a better future?

3%
Yes
No

97%

Figure:-10
From the above chart, it is observed that Mother Dairy has a better future according to 97% customers.

CHAPTER-5
FINDINGS &
CONCLUSION

5.1 FINDINGS
1. A majority of the respondents are those who have been using mother dairy products for more than
5years.
2. More than half of the respondents (54%) are those who consume Mother dairy products daily.
3. Most of the consumers seek information through word of mouth.
4. Advertising influence consumers in their purchase decision moderately.
5. Price is an important factor which influences consumers in preferring Mother dairy products.
6. Consumers provide utmost importance to quality in their buying preference.
7. More than 65% of the consumers prefer Mother dairy because of its brand image.
8. Packing is an important criteria preferred by the consumers in purchase of Mother dairy products.
9. A large number of respondents (60%) prefer Mother dairy products due to its easy availability.
10. Consumers select the place of purchase depending on the availability of products, easy to
purchase, cleanliness of shop and promotional activities.
11. Majority of the respondents are satisfied with the current mode of distribution of Mother dairy
products.
12. Consumers are satisfied with the overall services offered by Mother dairy.

5.2 CONCLUSION
Mother dairy is the first product and inimitable organization, which created a revolution in
procurement, processing, marketing and distribution of pure milk in the country. For retaining
potential consumers of Mother dairy it is necessary to identify those factors which motivate
consumers in purchase of Mother dairy products. From the study made it is found that quality
and brand images are important aspects which motivate consumers to buy Mother dairy products.
The easy availability of Mother dairy products is an added advantage. More consumer awareness
can be created through print and visual media. And to retain the potential consumers, their
changing needs and preferences should be continually monitored and Mother dairy should be
able to supply commodities according to the expectations of the consumers.

CHAPTER-6
SUGGESTIONS/
RECOMMENDATION

6.1 SUGGESSTIONS
1. The Mother dairy products should be made available to the ultimate consumers at the same
quality at which they are produced.
2. Make more provision to increase the commission for retailers so that they will be motivated to
sell more Mother dairy products.
3. Make provision to improve the services of middleman which will ultimately result in more
consumer satisfaction.
4. Create more awareness about Mother dairy products through print and visual media.
5. As the completion is very high in the market the marketing departments should take active
measures to retain its potential consumers.
6. As consumer preference and taste fluctuate from time to time, a market analysis should be
carried out at regular intervals to monitor the changing needs and taste of the consumers.

6.2 Recommendations
1. Must focus on growing market opportunity.
2. Must revise its strategy of procurement of milk from farmers in regards to payment of
price/litres.
3. Overseas market have huge capacity, must work aggressively on global expansion
4. Mother dairy facing challenges in Saurashtra region, due to AMUL which has market
value of 10000 Cr.
5. Mother dairy loosing competition to Amul, due to weak supply chain management of
Mother dairy.
6. Thus Mother dairy must focuses on its supply chain management.
7. There is huge gap in rise in population and rise in milk industry, thus the population is
rising by 17% and rise in dairy Industry is 4%.
8. Mother dairy can utilized this in positive way to diversify itself in regard to expansion as
well as product differentiation.

BIBLIOGRAPHY

Website--visited:

www.censusindia.gov.in
www.motherdairycalcutta.com
www.articles.timesofindia.indiatimes.com
www.motherdairy.com
www.nddb.org
www.researcandmarkets.com
www.thirdesight.in/article/motherdairy.html
www.gyananalytics.com

Tools used:

1. Microsoft Word
2. Microsoft Excel
3. Google Chrome
Books:
Marketing Research: An Applied Approach by David F. Birks and Naresh K.
Malhotra
Qualitative Marketing Research by David Carson, Audrey Gilmore and Kjell
Gronhaug

PEOPLE WHO HELPED:

MRS. POOJA KALRA JAIN, Assistant Professor, RDIAS

ANNEXURE
Questionnaire
What is your gender?
o Male
o Female

What is your age?

o
o
o
o

18-25
25-40
40-60
60+

Which product do you prefer most?

o Amul
o Mother dairy
o Others

Which Mother Dairy product do you prefer the most?

o
o
o
o

Ice creams
Milk product
Fruit and vegetable
others

Do you think brand name is important or not?

o Yes

o No
Which mother dairy milk product do u prefer the most?
o
o
o
o
o

Double toned
Toned milk
Full cream
Skimmed milk
Others

Do you think SAFAL is successful product of mother dairy?

o Yes
o No

Overall which one is the best?

o Amul
o Mother Dairy
o Others

Do you think prices of Mother Dairy product are high?

o Yes
o No

Do you think Mother Dairy has a better future?

o Yes
o No