CHAPTER 1 INTRODUCTION ABOUT THE MILK INDUSTRY

The Tamilnadu Cooperative Milk Producers Federation Ltd. constituted on the 1st February 1981 is handling the entire commercial activities of procurement, processing and marketing of milk and milk products. The Federation had implemented the Dairy Development activities with the funds provided by the National Dairy Development Board under Operation Flood Programmed in 24 Districts and in Non-operation Flood Districts Dairy Development activities are implemented by the Dairy Development Department through budgetary support both under State/Central Plans. To facilitate, better administration and qualitative improvement of integrated Dairy Development, there are 17 Districts Cooperative milk Producer’s Unions covering all 28 Revenue Districts except Chennai. The normal activities of milk procurement and distribution are being attended to by the District Unions. However, for genetic improvement of milch animals, the Federation through the two bull mother farms owned and managed by TCMPF carries out the production of frozen semen both for white cattle and black cattle. The Federation owns four dairies, one at Ambattur with a capacity of 4.00 lakh liters per day, one at Madhavaram with a capacity of 1.75 lakh liters per day, a third dairy at Sholinganallur with a capacity of 4.00 lakh liters per day. These dairies cater to the processing, packing and distribution of liquid milk in and around Chennai City. The fourth dairy, a product dairy at Ayyanavaram with a capacity of 12000 liters per day, is engaged in the manufacture of milk by-products such as yogurt, ice-cream and khova The Federation supervises and coordinates the activities of the District Unions and provides technical expertise as and when required and also undertakes planning and 1

erection/expansion of Dairies and Chilling Centers of the unions on turnkey basis. The Federation helps the Unions in marketing their milk products like Skimmed milk powder, Ghee, Butter and Cheese both within and outside the state. OBJECTIVES OF THE DAIRY Assure a remunerative price for the milk produced by the milk producers' societies through a stable, steady and well organized market support.Distribution of quality milk and milk products at reasonable prices to the consumers.Bearing the above two objectives in mind, the following major multifarious activities are undertaken by the Dairy Development Department. Provision of free veterinary health cover to all animals owned by the members of milk cooperatives, implementation of Artificial Insemination Programmed, supply of balanced cattle feed and inculcation of farmers with the modern animal husbandry methods and practices. All activities, which are essential for the up gradation of the milch animals and improving their productivity in the long run, are also to be imparted on them. Provision/creation of necessary infrastructure facilities for the enhancement of processing and marketing has been made by way of establishing new chilling centers, pasteurization plants and adoption of modern marketing system in order to supply quality milk to the consumers. FUNCTIONS OF THE DAIRY The main functions of the Dairy Development Department are Organization of societies, registration of societies, supervision and control of primary milk cooperatives, District Cooperative Milk Producers Union and Tamilnadu Cooperative Milk Producers Federation.

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The Dairy Development Department exercises statutory function - like Inquiry, Inspection, Surcharge and Super session, appointment of special officer’s liquidation and winding up of dormant Societies etc.

The Commissioner for Milk Production and Dairy Development, Deputy Milk Commissioner (Co-operation), and Circle Deputy Registrars (Dairying) are vested with quasi-Judicial powers in respect of settlement of disputes, appeal, revision and review under various provisions of Tamilnadu Cooperative Societies Act 1983 & the rules made there under. The Commissioner for Milk Production and Dairy Development has been designated as the State Registering Authority for the state of Tamilnadu, under the provisions of Milk and Milk Products Order'92. All the Dairy units including private Dairies handling more than 10,000 lpd of milk or Milk Products containing milk solids in excess of 500 Metric tones per annum has to obtain registration certificate under the provision of Milk and Milk Products Order'92. The Commissioner for Milk Production and Dairy Development / State Registering Authority has been conferred with powers to register the dairy units having handling capacity from 10,000 LPD to2 lakh LPD. The Commissioner / State Registering Authority / Deputy Milk Commissioner (Co-operation) / District collector and Deputy Registrars have been authorized to carry out supervision and periodic inspection of the dairies

National Diary Development Board (NDDB)
Diary co-operative account for the major share of processed liquid milk marketed in the country. Milk is processed and marketed by 170 milk producers’ co-operative unions, which federate into 15 state co-operative milk marketing federations. 3

The diary development board’s programmes and activities seek to strengthen the functioning of diary co-operatives, as producer-owned and controlled organizations. NDDB supports the development of diary co-operatives by providing them financial assistance and technical expertise, insuring a better future for Indian farmers. Over the years, brands created by co-operatives have become synonymous with quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan), Nandini (Karnataka), Milma (Kerala), Gokul (Kolhapur), Aavin(Tamilnadu), are those that have earned customers confidence.

Some of the major diary co-operatives federations include • • • • • • • • • • • • • • • Andra Pradesh Diary Development Co-operative Federation Ltd.,(APDDCF) Bihar State Co-operative Milk Producers Federation Ltd.,(COMPFED) Gujarat Co-operative Milk Marketing Federation Ltd.,(GCMMF) Hariyana diary Development Co-operative Federation Himachal Pradesh state Milk Producers Federation Ltd., (HPSCMPF) Karnataka co-operative Milk Producers Federation Ltd., (KMF) Kerala state co-operative Milk Producers Federation Ltd., (KCMMF) Madhya Pradesh state co-operative Dairy Federation Ltd., (MPCDF) Maharastra Rajya Shakari Maryadit Dugdh Mahasangh Orissa State Co-operative Milk Producers Federation Ltd., (OMFED) Prdeshik Co-operative Dairy Federation Ltd., (UP PCDF) Punjab State Co-operative Dairy Federation Ltd., (MILK FED) Rajasthan co-operative Dairy Federation Ltd., (RCDF) Tamilnadu co-operative Dairy Federation Ltd., (TCMPF) West Bengal co-operative Milk Producers Federation Ltd., (WBCMPF)

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ACHIEVMENT OF DIARY CO-OPERATIVES:
Commitments to help rural help themselves has guided the diary boards work for more than 30 years this commitment has been rewarded with achievements made by cooperative diaries in milk production, employment generation, per capital availability of milk, foreign exchange Savings and increased farmer incomes.

REACH:
The Diary Co-operative Network.  Include 170 milk unions.  Operates in over 285 districts.

 Covers nearly 96,000 village level societies.  Is owned by nearly 10.7 million farmer members.

MILK PRODUCTION:
• India’s milk production increased from 21.2 million MT in 1968-69 to 78.1 million MT in 1999-2000.Per capita availability of milk presently is 213 grams per day, up from 107 grams per day in 1969-70

India’s 4% annual growth of milk production surpasses the 2% growth in population. The net increase in availability is around 2% per year.

MARKETING:
• • Diary Co-operatives now market milk in about 200 classes 1 town and some 550. During the last decade, the daily milk supply to each 1000 urban Indians has increased from 17.5 to 43.5 liters.

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INNOVATION:
1. Bulk − vending − saving money and environment. 2. Milk travels as far as 2200 Kms to deficit areas, carried by innovative and road milk tanker. 3. 95% of diary equipment is produced in India, saving valuable foreign exchange.

MACRO IMPACT:
1. 2. The annual value of India’s milk production amounts to Rs.780 billion. Diary co-operative generate employment opportunities for some 10.5 million farm families.

PERSPECTIVE 2015:
The perspective 2015 plan of the Diary Board maps the future of dairying in India, setting realistic goal for strengthen co-operative business, production enhancement, assuring quality, and creating National Information Network. The plan was realistic with the successful completion of the operation flood program and has developed by the State milk Marketing Federation and the Milk Producer’s Co-operative Unions in consultation with the diary Board. The perspective 2015 goals and strategies to meet them have been drawn by its actual implementers-federation and unions and supported by NDDB. (National Diary Development Board)

PERSPECTIVE 2015 GOALS:
1. Increase liquid milk procurement by co-operatives to 33% (488 lakhs kilograms per day) of the marketable surplus in operation Flood Areas constituting 80% of the National Milk Produced (i.e. quadruple liquid milk procurement by the year 2015)

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2. Increase liquid milk sales to 365 lakhs kilo grams per day, more than 60% of the market shares in metros, and on average of close to 50%in class 1 cities served by Co-operative (i.e. triple fluid milk marketing by the year 2015) PRODUCT RANGE MILK: The federation is engaged in production of both milk and milk products. The federation sells the following type of milk to customers in Chennai metro:     Standardized Milk Toned milk Full cream milk UTH milk These products are marked under the brand name “AAVIN” MILK PRODUCTS: 1. 2. 3. 4. 5. 6. 7. 8. 9. Yogurt Ice creams Butter Milk Khova Skimmed milk powder Ghee Butter Cheese Flavoured milk

10. Mavin mango drink

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PRODUCT DETAILS: Product diary is situated next to the Ambattur dairy. It is controlled by the manager (production and maintenance). The milk which is received through load tankers are pumped into raw milk storage tank, then taken for different product processing. The various products produced here are as follows:           Ice Creams Khalakhad Yoghurt/ fermented milk Curd Buttermilk Gulabjamun Flavoured Milk Khoa (sweetened) Khoa (unsweetened) Mysorepak.

MARKET COMPETITORS: Aavin stands first in the production and distribution of milk in Tamilnadu. Its competitors are:     Arokya Heritage Thirumala Nutra

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CHAPTER 2 REVIEW OF LITRATURE
ROSHIT SHARMA (1999) “VIEW ON INDIAN DIARY SECTOR” Under the provisions of milk and milk products order. All the dairy units including private dairies handling more than 10,000 lpd of milk or milk products containing milk solids in excess of 500 metric tons per annum has to obtain registration certificate under the provision of milk and milk products order ANAND VEER (2005) “SPECULATIVE VIEW ON INDIAN DIARY SYSTEM” The diary development board’s programs and activities seek to strengthen the functioning of diary co-operatives, as producer-owned and controlled organizations. NDDB supports the development of diary co-operatives by providing them financial assistance and technical expertise, insuring a better future for Indian farmers. DENNIS MATHEW (2006) “DIARY ON GLOBAL VIEW “ Commitments to help rural help themselves has guided the diary boards work for more than 30 years this commitment has been rewarded with achievements made by cooperative diaries in milk production, employment generation, per capital availability of milk, foreign exchange savings and increased farmer incomes.

KEVIN ALEX (2004) “INDIAN MILK PROCURMENT” In India realistic goal for strengthen co-operative business, production enhancement, assuring quality, and creating national information network. The successful completion of the operation has developed by the state milk marketing federation and the milk producer’s co-operative unions in consultation with the diary 9

board. The perspective 2015 goals and strategies to meet them have been drawn by its actual implementers-federation and unions and supported by NDDB. (national diary development board)

CHAPTER 3 RESEARCH METHODOLOGY

3.1 MEANING The research approach for this study was conclusive research. Conclusive researches are designed to help executives to choose among various possible alternatives to make a viable business decision. Further this research was of descriptive type, which is an offshoot of conclusive research. The problem for this research was non-operating in nature the data both primary and secondary data, the source was one hundred respondents for primary data. For the proper analysis of data simple statistical techniques such as percentage were use. It helped in making more accurate generalization from the data available.

3.2 SOURCES OF DATA Source of data for this project primary & secondary only. In reference to the theoretical concept as well as for information are collected through secondary sources from paper published material i.e. Newspaper, journal and magazine & from printed electronic media i.e. Internet websites. The primary data was collected through questionnaire filled from the respondents.

3.3 COLLECTION OF PRIMARY DATA For the study primary data is obtained through preparing questionnaire

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3.4 COLLECTION OF SECONDARY DATA The secondary data that are required are got from the internet, books and other sources. 3.5 SAMPLE SIZE The method used for sample technique was random sampling method. This method was used because it was not know previously as to whether a particular person will be asked to fill the questionnaire.

3.6 SAMPLE UNIT The population of the sample would be 100 respondents.

3.7 STASTICAL TOOLS
 Simple

Percentage

Analysis=Number

of

Respondents/Total

Number

of

Respondents×100%  CHI-SQUARE Chi Square analysis has been used to judge the relationship or association between two attributes and to find out how they are influencing the investment patterns. Χ2=Σ (O-E) 2/E Degree of freedom= (R-1) (C-1) Where O = Observed Frequency E = Expected Frequency R = Number of Rows C = Number of Columns

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CHAPTER 4 ANALYSIS AND INTERPRETATION
Table - 1
Consuming Milk S.No 1. 2. Factors Yes No Total No of respondents 89 11 100 Percentage 89 11 100.00

Interpretation From the Above Table we predict that 89 % of the Respondents consume milk & 11 % do not. Inference This Study reveals that 89 % of the respondents consume milk

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CHART 1 Consuming Milk

NO OF RESPONDENTS

MILK CONSUMPTION

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Table – 2 Consumption of Milk

S.No 1. 2. 3. 4.

Factors Aavin Arokaya Nutra Akshya Total

No of respondents 28 30 18 24 100

Percentage 28 30 18 24 100.00

Interpretation From the Above Table we predict that 28 % of them buy Aavin while 30 % buy Arokaya 18 % buy Nutra & 24 % buy Akshya Inference This Study reveals that 30 % of the respondents buy Aryoka Milk

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CHART 2 Consumption of Milk

NO OF RESPONDENTS

MILK BRAND COMSUMPTION

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Table-3 Other milk factor S.No 1. 2. 3. 4. Factors Butter Cheese Paneer Others Total No of respondents 34 28 24 14 100 Percentage 34 28 24 14 100.00

Interpretation From the Above Table we predict that 34 % of the Respondents buy Butter while 28 % buy cheese 24 % buy paneer and 14 others products. Inference This Study reveals that 34 % of the respondents buy Butter

CHART 3 Other milk factor 16

NO OF RESPONDENTS

OTHER PRODUCTS

Table - 4 Satisfaction of the Product 17

S.No 1. 2.

Factors Yes No Total

No of respondents 64 36 100

Percentage 64 36 100.00

Interpretation From the Above Table we predict that 64 % of the respondents are satisfied while 36 % are not satisfied. Inference This Study reveals that 64 % of the respondents are satisfied with the milk

CHART 4 Satisfaction of the Product

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NO OF RESPONDENTS

SATISFICATION LEVEL SATISFICATION LEVEL

Table – 5 About the Product

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S.No 1. 2. 3.

Factors Friends/Family T.V. Ads Newspaper/Boards Total

No of respondents 40 24 32 100

Percentage 40 24 32 100.00

Interpretation From the above Table we predict that 40 % from Friends & Family 40 % from Tv Ads 32 % Newspaper/Boards Inference This Study reveals that 40% of the respondents came to know about the product through Family\Friends

CHART 5 About the Product

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NO OF RESPONDENTS

PRODUCT RELEVANCE

Table – 6 Purchasing Significance S.No Factors No of respondents 21 Percentage

1. 2. 3. 4.

Quality Quantity Service Others Total

30 24 20 26 100

30 24 20 26 100.00

Interpretation From the Above Table we predict that 30% of respondents look for Quality, 24% go towards Quantity 20% Service 26 % others. Inference This Study reveals that 30 % of the respondents wanted Quality in their product

CHART 6 Purchasing Significance

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NO OF RESPONDENTS

PURCHASING BASIS

Table – 7 Comparison Competitor’s product S.No 1. 2. Factors Very Good High No of respondents 14 34 23 Percentage 14 34

3. 4.

Average Same Total

10 42 100

10 42 100.00

Interpretation From the Above Table we predict that 14 % of the respondents compare their product on very good, 34% is high, 10 % Average, 42% are same. Inference This Study reveals that 34 % of the respondents feels the price of others product is very high

CHART 7 Comparison Competitor’s product

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NO OF RESPONDENTS

COMPETITORS COMPARISION

Table – 8 Substitutes S.No Factors No of respondents 25 Percentage

1. 2. 3. 4

Tea Coffee Cool Drink Others Total

38 42 12 8 100

38 42 12 8 100.00

Interpretation From the Above Table we predict that 38% of respondents drink tea, 42 % drink coffee, 12 % drink Cool Drink, 8 % prefer others. Inference This Study reveals that 42 % of the respondents feel coffee as the close substitute

CHART 8 Substitutes

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NO OF RESPONDENTS

Substitutes

Table-9 Beverages as Substitutes S.No 1. 2. Factors Yes No No of respondents 32 68 27 Percentage 32 68

Total Interpretation

100

100.00

From the Above Table we predict that 32% of the respondents use Beverage as substitute while 68% do not Inference This Study reveals that 68 % of the respondents feel that Beverages are not the close substitute

CHART 9 Beverages as Substitutes

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NO OF RESPONDENTS

Beverage on substitute

Table-10 Implication of Advertisements S.No 1. 2. Factors Yes No No of respondents 64 36 29 Percentage 64 36

Total Interpretation

100

100.00

From the Above Table we predict that 64 % of the respondents agree with the Advertisement Implies and 36 % do not agree. Inference This Study reveals that 64 % of the respondents feel that advertisements implies

CHART 10 Implication of Advertisements

30

NO OF RESPONDENTS

Advertisement Influence

Table-11 Satisfaction of Homemade milk S.No 1. 2. Factors Yes No No of respondents 61 39 31 Percentage 61 39

Total Interpretation

100

100.00

From the Above Table we predict that 61 % of respondents are satisfied with Homemade Milk while 39 do not agree.

Inference This Study reveals that 61 % of the respondents feel satisfied with home made milk

CHART 11 Satisfaction of Homemade milk

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NO OF RESPONDENTS

Satisfication level

Table-12 Performance of the Existing Product S.No Factors No of 33 Percentage

1. 2. 3. 4.

Outstanding Excellent Good Average Total

respondents 26 30 20 24 100

26 30 20 24 100.00

Interpretation From the Above Table we predict that 26 % of respondents believe its outstanding, 30 % are excellent, 20 % believe its good & 24 on average basis Inference This Study reveals that 30 % of the respondents feel their product is excellent

CHART 12 Performance of the Existing Product

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NO OF RESPONDENTS

Performance level

Table – 13 Promotional Activity

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S.No 1. 2.

Factors Yes No Total

No of respondents 64 36 100

Percentage 64 36 100.00

Interpretation From the Above Table we predict that 64 % of respondents are affected by their promotional activity and 36 % are not Inference This Study reveals that 64 % of the respondents feel their product makes product promotion

CHART 13 Promotional Activity

36

NO OF RESPONDENTS

PROMOTIONAL ACTIVITY

CHAPTER 5 5.1 FINDINGS
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 This Study reveals that 89 % of the respondents consume milk

 This Study reveals that 30 % of the respondents buy Aryoka Milk  This Study reveals that 34 % of the respondents buy Butter  This Study reveals that 64 % of the respondents are satisfied with the milk  This Study reveals that 40% of the respondents came to know about the product through Family\Friends  This Study reveals that 30 % of the respondents wanted Quality in their product  This Study reveals that 34 % of the respondents feels the price of others product is very high  This Study reveals that 42 % of the respondents feel coffee as the close substitute  This Study reveals that 68 % of the respondents feel that Beverages are not the close substitute

 This Study reveals that 64 % of the respondents feel that advertisements implies

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 This Study reveals that 61 % of the respondents feel satisfied with home made milk  This Study reveals that 30 % of the respondents feel their product is excellent  This Study reveals that 64 % of the respondents feel their product makes product promotion

5.2 SUGGESTIONS

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 Milk and milk product purchase decisions are more decided by women rather than male, because she act as a invigilator, execute her decision and influence the same to the purchase while ascertaining the quality, freshness and price. Hence, I suggest Diary co-operative society to concentrate more on the women and men suggestions for designing the marketing strategy, because women’s role in the house is dominant, even in the various decisions.

 Income of the people decides the purchasing power. The high income prefers to purchase product with the quality, freshness, thickness, etc. and vice versa. So I suggest Diary to concentrate also on low income segment to capture market and position themselves in the minds of the customer with required quality and quality milk and milk products.

 Quality and Brand Image plays a dominant role. Milk and milk products move in the market due to its quality and brand. Therefore it should maintain the same.

 Since milk is having loyal customer it should concentrate more on this factor through various potential programmes such as campaign, premium packs, offers etc., this helps to increase the loyalty towards the diary products

 As only 30% of the total respondents are dissatisfied which is quite a large percentage and this may influence negatively and increase the rate of switch over. Hence I suggest management to concentrate on few product quality, shelf life, dealers approach, outlet maintenance etc. will help diary department to satisfy to a greater extent.

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 Milk and milk product are having high demand and it is considered as a very essential products. In present practice, purchase of milk and milk products is through dealers. In this connection dealers approach towards the product.

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5.3 CONCLUSIONS
 From the survey conducted it is observed that milk and Milk products has a good market share.  From the study conducted the following conclusions can be drawn. In order the dreams into reality and for turning liabilities into assets one must have to meet the needs of the customers.  The factors considered by the customer before purchasing milk are freshness, taste, thickness and easy availability.  Finally I conclude that, majority of the customers are satisfied with the milk and Milk products because of its good quality, reputation, easy availabilities. Some customers are not satisfied with the Milk & Milk products because of high price, lack of dealer services, spoilage and low shelf life etc. therefore, if slight modification in the marketing programme such as dealers and outlets, promotion programmers, product lines etc., definitely company can be as a monopoly and strong market leader.  Diary Department has also to take care of its competitors into consideration and more importantly it’s customers before making any move.

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ANNEXURE 5.4 QUESTIONNAIRE
1. Name 2. Age 3. Gender 4. Occupation 5. Annual Income 6. Do you consume milk? ❏Yes ❏No

7. How much litres milk do you purchase per day?

--------------------8. Which Milk do you buy? ❏Aavin ❏Arokaya ❏Nutra ❏Akshya

9. Other than milk what do you purchases in the same brand ❏Butter ❏ Cheese ❏Panner ❏Others

10. Are you satisfied with the quality of the product? ❏Yes ❏No

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11. How did you come to know about your milk product?

❏Friends/Family ❏T.V. Ads ❏Newspaper/Boards 12. What exactly you wanted in the milk you purchase? ❏Quality ❏Quantity ❏Service ❏Others

13. Do you think the price of your existing product is high / low compared to Competitor’s product? ❏Very good ❏High ❏Average ❏Same

14. Other than milk which component is comparable? ❏Tea ❏Coffee ❏Cool drinks ❏Others

15. Are beverages close substitute for milk? ❏Yes ❏No

16. Does Advertisement implies the sale of Diary Product ❏Yes ❏No

17. Will you be satisfied with the home made milk products?

❏Yes

❏No

18. What is your opinion about the performance of your existence Diary Product? ❏Outstanding ❏Good ❏Excellent ❏Average

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19. Do the various schemes / promotional activities affect your purchase plans? ❏Yes ❏No

20. Suggest your comments on improving the diary products ______________________________________________

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5.5 BIBLIOGRAPHY
Websites
 www.altavista.com  www.askjeeva.com  www.google.com  www.aol.com  www.hindustan.com  www.projecthubs.com  www.indiainfoline.com

Newspapers
 Times of India  The Economic Times

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