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The modern marketer is called upon to set the marketing objectives, develop the
marketing plan, organize the ,marketing function, implement the marketing plan or
programme (marketing mix) and control the marketing programme to ensure the
accomplishment of the set marketing objectives. The marketing programme covers producer
planning or merchandising, price, promotion and distribution.
In short, modern marketing begins with the customer, not with production cost, sales,
technological landmarks and it ends with the customer satisfaction and social well-being.
Under the market- driven economy buyer or customer is the boss.
Marketing has been viewed as an ongoing or dynamic process involving a set of
interacting activities dealing with a market offering by producers to consumers on the basis
of reliable marketing anticipation.
Marketing is a matching process by which a process by which a producer provides a
marketing mix that meets consumer demands of a target markets within the limits of society.
The process is based on corporate goals and corporate capabilities. Marketing process brings
together producers and consumers the two main participants in exchange.
Each producer or seller has certain goals and capabilities in making and marketing his
products. He uses marketing research as a tool to anticipate market demand. Then he provides
a marketing mix in order to capitalize marketing opportunity. An exchange or a transaction
takes when market offering is acceptable to the customer who is prepared to give something
value return against the product so bought.
Kerala Co-operative Milk Marketing Federation Limited (KCMMF) markets its milk
and milk products under the brand name “MILMA”. Malabar Regional Co-operative Milk
Producers’ Union Limited (MRCMPU is one of the three Regional Co-operative Milk
Producers’ Union in Kerala. The importance of a modern marketing strategy for MRCMPU
has only recently be realized. Apart from supervision of milk sales and physical organization
of sale, now the concept of modern marketing strategies are well developed at MRCMPU
Limited including many areas like
1.2.Company profile:
Milma is one of the major brand in kerala. According to survey conducted by Dhanam
Magazine “MILMA” is the number one brand for last five years. KCMMF supplies about
12lakh litres of milk in the market. As it is a venture for farmers prosperity, it supplies about
1400 crores to farmers.
Before formation of MRCMPU, the Kannur and Palakkad Dairies were managed by
Kerala Co-operative Marketing Federation(KCMMF) and the erstwhile of Kozhikode,
Malappuram and Wayanad milk Unions were functioning in the area of MRCMPU. It took
over Kannur and Palakkad dairies from KCMMF on 01.06.1990 and the three district milk
unions were merged with MRCMPU on 01.08.1990.
1.Artificial Insemination:
It is carried out through more than 100 Artificial Insemination centres located at
village dairy co-operative societies. These centres are manned by self employed youth or
trained society employee.
Milma supplies Balanced cattle feed through the village Dairy co-operative
societies at subsidized rates. In order to reduce cost of production they supplies straw pellets
sourced from other states to farmers at subsidized rates. The supply of baled straw to farmers
at subsidized rates from Straw Baling Unit at Palakkad had done. Milma provides essential
drugs and vitamins to keep proper health of milch animals.They established fodder plots to
make available green fodder to farmers at affordable rates.
The concept of Total Mixed Ration Programme (TMR) is to utilize the locally
available crop residues and feedstuff of plant origin for milk production. The main residues
proposed to be used are from paddy, banana and jackfruit. The plant to manufacture TMR is
proposed to be set up soon.
The objective of the programme is to develop 2000 high quality cows through their
adoption and focused attention from the heifer stage itself. Ten heifers each will be selected
from 200 Co-operative societies and they are proposed to be given special provisions like
vitamins, minerals, medicines and adequate volumes of cattle feed using the special budget
set apart for this.
5. Farm Support Programme:
Under this scheme veterinarians on contract basis are posted at a central society with
required facilities and medicines. Service of these veterinarians is to be made available on
cost basis to the farmers of all societies in the area.
This programme mainly focuses on training Farm Women groups in the village by a
trained promoter selected from same village. Trainers training are given to the promoters on
different aspects of technical dairying, communication skills, motivation and Personnel
Development at regular intervals. The trained promoters will have men and women farmers
groups in the village (6-8 groups per village) as the target group. The task of promoter is to
conduct regular informal meetings to discuss different topics related to dairying and
individual/social development. It include topic such as Clean milk production, Family
counseling, calf rearing, Child psychology, Feeding of dairy animals, Prevention and control
of diseases, consumer rights, Home management, Artificial insemination activities.
Malabar Rural Development Foundation is a charitable trust registered under the Indian
Trusts Act 1882 for implementing non – core social developmental activities for the benefit
of farmers in Malabar region. It was established on October 16 2001. It is managed by a
board of trustees consisting seven members including Chairman of KCMMF Ltd , Chairman
of MRCMPU Ltd and Managing Director of MRCMPU Ltd. The major initiatives of MRDF
include the following :
Financial support for the education of children of farmers and employees who have
registered under the trust
Distribution of low cost alternate cattle-feed like beer waste
Procurement and distribution of farm machinery like milking machines, chaff cutters,
rubber mats etc. at reasonable rates to farmers.
Implementation of Farm Tourism Initiatives involving the linkage of dairy farms and
scenic spots in Wayanad District, so as to give tourists an opportunity to spend quality
time with the dairy farmer in the village.
Milma For Consumers:
1. ISO 9001:2008:
The growing concern among consumers about the safety of food is one of the greatest
challenges facing the dairy industry today. The Hazard Analysis and Critical Control Point
(HACCP) system is a structured, systematic tool developed to identify and asess the
microbiological, chemical, physical and allergenic hazards and risks associated with the
manufacture and distribution of dairy products. HACCP is a method to reduce the hazard
down to an acceptable level or even less. In MRCMPU Ltd the Kozhikode Dairy is HACCP
certified. HACCP together with prerequisites such as Good Hygienic Practices (GHP) during
milk production and processing and Good Manufacturing Practices (GMP) are the basis for
producing safe milk products any where in the world.
3. ISO:22000:2005:
This latest international standard specifies the requirements for a food safety management
system where an organization in the food chain needs to demonstrate its ability to control
food safety hazards in order to ensure that food is safe at the time of human consumption. It
requires an organization to meet any applicable food safety related statutory and regulatory
requirement through its food safety management system. This system is under
implementation at the newly commissioned Wayanad Dairy.
Kannur Diary
The Kannur Dairy is located at Pallikunnu, 6Kms away from Kannur town near the
National Highway 47. It was inaugurated on 30th august 1979. The Kannur diary is
manufacturing mainly milk, ghee, curd, and sambharam. During the initial period this dairy
manufactured only 1000liters/day of milk, now it has increased to 100,000liters/day. Its area
of operation is Mahe & Kannur district except market areas under Koothuparamba depot.
Milma supplies its products through Agents and Dealers. Under Kannur diary there is 879
dealers and 29 credit institution. The dairy was expanded from 60,000 LPD to 100,000 LPD,
during 2002-03. The dairy procure milk from Kannur and Wayanad district and selling milk
and milk products to Kannur district. Kannur district is divided into four zones. Each zone is
under the controll of each supervisors.
The diary was established in the 1979 by Government of Kerala directly under the
control of the Kerala Live Stock Development and Milk Marketing Board Limited. It
formally comes into the existence on 31st August 1979 with an installed capacity of 10,000
litres per day. The initial procurement was around 586 liters of milk per day and the
maximum sales turnover achieved was around 3452 liters of milk. The procurement gone up
to 1210 liters per day during 1982-83 and sales 4694 liters. During 1983-84 the activities of
the Kannur Diary was taken over by the Kerala Co-operative Milk Marketing Federation.
During the initial stage procurement was about 6000liters per day and the sale 9000liters. The
activities of KCMMF continue till 1990, during that time the procurement reach up to 12000
liters and sale reach up to 27000 liters per day.
In the year of 1990-91 again the dairy was taken over by Malabar Union on 1st june
1990. The average daily procurement at that time was 14300 liters and the sale was around
28000 liters of milk. With the assistance of swiss agency for development and co-operation,
Kannur dairy was able to shot up the procurement to 65963 liters of milk and sales 68365
liters per day. In addition to that they started selling ghee and sales reach up to 13260kg per
month, 4535kg of curd per day and 4805 packets of butter milk per day. With the whole
hearted co-operation of the diary farmers, board employees, dealers and finally consumers
MILMA was able to achieve a land mark in the procurement processing and marketing of
milk and milk products and were able to achieve confidence of general public. During these
periods dairy was able to manufacture and sell various value added products and there by
strengthen the financial base of the diary. The dairy has celebrated its silver jubilee of
functioning on 25th October 2002.
MISSION:
Objectives of MILMA:
1. To channelize marketable surplus milk from the rural areas to urban deficit areas to
maximise return to the producers and provide quality milk and milk products to the
consumers.
4. To provide constant market and stable price to the dairy farmers for their produce.
Product profile:
MILMA has a range of products. Its marketing chain consist of number of outlets,
across the state ensures the availability of milma products to consumers. Milma produces
wide varieties of milk and milk products to its customer. In Kannur diary MILMA produces
three types of milk based on the fat and other content and also various value added products
extracted from milk. Other than Milk dairy manufactures product such as Curd, Sambharam,
Ghee.
Milk:
1. Toned milk:
Toned milk is the first variety of milk introduced by milma to the market. The raw
milk is pasteurized and then the fat and SNF are maintained at 3 % and 8 % respectively.
Pasteurization is a process where in the milk is first boiled to 74 0c and rapidly cooled to 4 0c
in order to make the milk bacteria free. Fat and SNF content in the toned milk is similar to
that of cow milk and makes it a favourite for households. Toned milk is supplied to the
market in 500 ml packets with a maximum retail price of Rs.11.50 per packet.
2. Homogenised milk:
When only toned milk in market. milma could not satisfy the need of its large variety
of customers. So milma introduced homogenized toned milk in the market. The contents of
homogenized toned milk are same as that of the toned milk. It contains 3 % fat and 8.5 %
SNF, but is homogenized. Homogenization is a process where in the fat content of the milk is
pasteurized and dissolved in the milk. Toned milk undergoes this process after pasteurization
and transforms into homogenized toned milk, which is much thicker and denser than the
ordinary toned milk and hence this milk is good for preparation of tea, coffee, and other milk
based dishes. But since the fat is dissolved in the milk, ghee can’t be extracted from
homogenized toned milk.
It contains 1.5 percent fat and 9.0 percent non-fat solids. Ideal for elderly people since
fat content is low. Can also be used for whitening tea/coffee and for the preparation of milk
based drinks like fruit shakes. Fat will not settle at the top since the milk is homogenized.
Available in 500 ml sachets.
Curd:
Sambharam:
Sambharam (Buttermilk) contains 4.5 percent total solids and natural flavour extracts.
Ideal as thirst quencher during hot season. Prepared under hygienic conditions using fully
natural processes. It is available in 200 ml sachets.
Ghee:
Ghee contains 99.7 percent milk fat. It is manufactured by melting fresh cream under
hygienic conditions. Milma ghee has the ideal golden yellow colour due to presence of
natural carotene in cow milk. (In contrast, ghee manufactured from buffalo milk is white in
color). No artificial colours or flavours are added in Milma ghee. Natural aroma and flavour
of ghee is retained since ghee is produced directly from fresh cream instead of going in for
melting stored butter.
FUNCTIONAL DEPARTMENTS
Technical Superintends
Lab Technicians
Lab Attendee
Responsibilities:
3. Checking the quality of milk at different sit permits during the production processes.
5. To ensure that the supplied milk satisfies the conditions stated in process of food
adulteration act, Package commodities act and Weight and measurement.
2. Production Department:
This department deals with the production activities. The production department is
headed by Technical officer (dairy). 20 employees were working in this department.
Production Manager
Senior Supervisor
Supervisor
Plant attendees
3. Technical Department:
Responsibilities:
MRCMPU has a centralized marketing department for the whole region headed by
marketing manager at head office and dairy level marketing department in each unit is headed
by marketing manager at dairy.
Responsibilities
2. Forecasting of sales
Field Supervisor
5. Finance and Accounts Department:
Responsibilities:
Clerical Staff
Responsibilities:
Computers are widely used for information processing and other office automation
functions. Computer system are installed in diary for various purpose such as Milk billing,
Financial Accounting, Raw Milk Reception and Despatch, Stores, Payroll, Plant Operation,
Marketing etc. All Diaries are interconnected with Management Information System (MIS).
Broadband connection is established between Dairies and Head Office.
Statement of the problem:
The problem identified for the study is to find out the level of awareness of MILMA milk and
also to find out the attitude and perception of the consumers towards MILMA milk and milk
products in Kannur district.
Primary objective
1. To assess the Customer Satisfaction levels about the milma products and its
availability.
Secondary Objectives
1. To know about products and production of milk and various milk products.
2. To identify various activities conducting by Milma for the welfare of Farmers and
Consumers.
Data Sources
Primary Data
Primary data are those data which are collected for the first time which is original in
character. Here primary data are collected from customers through a well structured
questionnaire.
Secodary Data
Secondary data is information that has already been collected and is usually available
in published or electronic form. This data can be accessed from from company records,
journals, Magazines, websites etc.
Research Instrument
Sampling Plan
Sampling Unit:
A survey on 100 customers was conducted for measuring customers satisfaction level
on milma products and its availability.
Sampling Procedure
Convenience sampling was used for the study. The researcher collected the data to
find out the customer level of satisfaction by giving the previously prepared questionnaires.
Contact Method
Direct contact method was used for the study. The questionnaires were directly given
to the customers. This method helped the researcher to get directly feedback from the
customers.
The collected data has been analyzed using statistical tools like percentage method
and softwares. Tables, diagrams charts etc. were used to present the result in a more
simplified manner. Microsoft Excel and SPSS software is used for processing and analyzing
the data.
Project Period
1. The study was limited to a particular area of Kannur district, therefore the finding
and conclusions are valid only for this area.
2. Time factor was a major constraints to the study and posed hindrances for any
deeper investment.
3. The collection of data find some difficult, due to lack co-operation from some
respondent.
4.
Theoretical Review
Introduction
The term “market” is derived from the Latin word ‘Marcatus’ which means to trade or
place of business. So in the literal sense and in the ordinary language, the term ‘Market’
refers to a certain place, where buyers and sellers personally meet each other and make their
purchase and sales. In short, it means a certain place where goods are bought and sold
However in commerce the term ‘Market’ is used in the economic sense. In the
economic sense the term ‘Market’ does not refer to any particular place where buyers and
sellers meet face to face and make their purchase and sales, but covers the whole of any
region, where the buyers and sellers are in such free intercourse, that is contract or
communication with one another that a single price prevails for a certain commodity at a
certain point of time through the region.
In short, it means the getting together of buyers and sellers in person or any by mail
telephone, telegraph of through any other means of communication.
M arketing:
The meaning of the term ‘marketing’ can be studied under two heads. They are,
Definition
Customer Orientation
A firm in the market economy survives by producing goods that persons are willing
and able to buy. Consequently, ascertaining consumer demand is vital for a firm's future
viability and even existence as a going concern. Many companies today have a customer
focus (or market orientation). This implies that the company focuses its activities and
products on consumer demands. Generally, there are three ways of doing this: the customer-
driven approach, the market change identification approach and the product innovation
approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic
marketing decisions. No strategy is pursued until it passes the test of consumer research.
Every aspect of a market offering, including the nature of the product itself, is driven by the
needs of potential consumers. The starting point is always the consumer. The rationale for
this approach is that there is no reason to spend R&D funds developing products that people
will not buy. History attests to many products that were commercial failures in spite of being
technological breakthroughs.
Product → Solution
Promotion → Information
Price → Value
Place → Access
If any of the 4Ps were problematic or were not in the marketing factor of the business, the
business could be in trouble and so other companies may appear in the surroundings of the
company, so the consumer demand on its products will decrease.
Customer Satisfaction
Customer satisfaction makes the customers loyal to the company. Previous researchers have
found that satisfaction of the customers can help the brands to build long and profitable
relationships with their customers (Eshghi, Haughton and Topi, 2007). Though it is costly to
generate satisfied and loyal customers but that would prove profitable in a long run for a firm
(Anderson, Fornell and Mazvancheryl, 2004). Therefore a firm should concentrate on the
improvement of service quality and charge appropriate fair price in order to satisfy their
customers which would ultimately help the firm to retain its customers (Gustafsson, Johnson
and Roos, 2005).
It is a common phenomenon that the services a brand offers and the price it charges
actually determine the level of satisfaction among its customers, than any other measure
(Turel et al. 2006). Customer’s involvement is also important as when buyer consider the
product important and invests time to seek information then it ultimately enhances the
satisfaction level (Russell-Bennett, McColl Kennedy and Coote, 2007). This satisfaction may
influence the concerned company by repurchase, purchase of more products, positive word of
mouth and willingness of customer to pay more for the particular brand. Any business is
likely to lose market share, customers and investors if it fails to satisfy customers as
effectively and efficiently as its competitors is doing (Anderson, Fornell, and Mazvancheryl,
2004).
Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988
provides the basis for the measurement of customer satisfaction with a service by using the
gap between the customer's expectation of performance and their perceived experience of
performance. This provides the measurer with a satisfaction "gap" which is objective and
quantitative in nature. Work done by Cronin and Taylor propose the
"confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman,
Zeithaml and Berry as two different measures (perception and expectation of performance)
into a single measurement of performance according to expectationThe usual measures of
customer satisfaction involve a survey with a set of statements using a Likert Technique or
scale. The customer is asked to evaluate each statement and in term of their perception and
expectation of performance of the organization being measured. Their satisfaction is
generally measured on a five-point scale.
Good quality measures need to have high satisfaction loadings, good reliability, and
low error variances. In an empirical study comparing commonly used satisfaction measures it
was found that two multi-item semantic differential scales performed best across both
hedonic and utilitarian service consumption contexts. According to studies by Wirtz & Lee
(2003), they identified a six-item 7-point semantic differential scale (e.g., Oliver and Swan
1983), which is a six-item 7-point bipolar scale, that consistently performed best across both
hedonic and utilitarian services. It loaded most highly on satisfaction, had the highest item
reliability, and had by far the lowest error variance across both studies. In the study, the six
items asked respondents’ evaluation of their most recent experience with ATM services and
ice cream restaurant, along seven points within these six items: “please me to displeased me”,
“contented with to disgusted with”, “very satisfied with to very dissatisfied with”, “did a
good job for me to did a poor job for me”, “wise choice to poor choice” and “happy with to
unhappy with”.
A semantic differential (4 items) scale (e.g., Eroglu and Machleit 1990)[9], which is a
four-item 7-point bipolar scale, was the second best performing measure, which was again
consistent across both contexts. In the study, respondents were asked to evaluate their
experience with both products, along seven points within these four items: “satisfied to
dissatisfied”, “favorable to unfavorable”, “pleasant to unpleasant” and “I like it very much to
I didn’t like it at all”.The third best scale was single-item percentage measure, a one-item 7-
point bipolar scale (e.g., Westbrook 1980)[10]. Again, the respondents were asked to evaluate
their experience on both ATM services and ice cream restaurants, along seven points within
“delighted to terrible”.
It seems that dependent on a trade-off between length of the questionnaire and quality
of satisfaction measure, these scales seem to be good options for measuring customer
satisfaction in academic and applied studies research alike. All other measures tested
consistently performed worse than the top three measures, and/or their performance varied
significantly across the two service contexts in their study. These results suggest that more
careful pretesting would be prudent should these measures be used.
Finally, all measures captured both affective and cognitive aspects of satisfaction,
independent of their scale anchors. Affective measures capture a consumer’s attitude
(liking/disliking) towards a product, which can result from any product information or
experience. On the other hand, cognitive element is defined as an appraisal or conclusion on
how the product’s performance compared against expectations (or exceeded or fell short of
expectations), was useful (or not useful), fit the situation (or did not fit), exceeded the
requirements of the situation (or did not exceed
Data Analysis
Interpretation:
From 100 samples taken, 81% of people prefer Milma Brand. 9% prefer Amul, 10%
of customer prefer Janatha Brand. Nobody choose Wayanad milk.
2. The product of MILMA you buying?
Interpretation:
Among 81 customer, 71.6% buys Milk, 16.05% uses Curd, 4.94% buys Butter milk,
and 7.41% uses Ghee. Ice creams are not available in this area.
3. How did you come to know about MILMA?
Interpretation:
Milma came to through different sources. 82.72% from Advertisement, 6.17% from
Relatives, 3.7% from T.V., 7.41% from Other sources.
4. How often do you buy MILMA product?
Interpretation:
In this 67% buys Milma products very frequently, 16% purchase frequently,
10%Occasionally, and 7% people buys rarely.
5. Is MILMA providing the best value for money?
Interpretation:
Among 81 samples 28.4% are strongly agree, 50.62% are Agree, 17.28% are
Neutral,3.37% are Strongly Disagree.
6. It is easy to buy MILMA product because of its availability?
Interpretation:
56.8% customer Strongly Agree that Milma product are available,33.33% are Agree,
6.17% are Neutral, 3.7% are Disagree.
7. Price of MILMA compared to competitors’ Product?
Interpretation:
20.99% customers says that Milma’s price is Very high compared to competitors.
22.22% are High, 56.79% are Neutral.
8. Quality of MILMA product?
Interpretation:
32.09% customers are Highly satisfied with quality of product, 56.79% are satisfied,
8.64% are Nuetral, 2.48% are Dissatisfied.
9. Reachability and Accessibility of MILMA product?
Interpretation:
19.75% are Highly satisfied, 62.96% are Satisfied, 13.58% are Nuetral, 3.71% are
Dissatified.
10. whom the product buy?
Interpretation:
Among 81 samples 92.59% respondents from Retailer, 2.47% from Agents, 4.94%
from Home Delivery.
11. Taste of MILMA products?
Interpretation:
9.88% are Highly satisfied, 71.6% are Satisfied, 14.82% are Nuetral, 3.7% are
Dissatisfied.
12. Freshness of MILMA product?
Interpretation:
22.22% are Highly satisfied with freshness of products, 60.49% are Satisfied, 13.58%
are Nuetral, 3.71% are Dissatified.
13. Packaging of MILMA products?
Interpretation:
Among 81 samples,16.05% are highly satisfied. 20.99% are Satisfied. 58.02% are
Nuetral. 4.94% are Dissatisfied
14. Service of MILMA in delivering products?
Interpretation:
Among 81 samples 67% are good, 25% are Nuetral, 8% opinion is Bad.
15. Do you suggest MILMA to anybody?
Interpretation:
1. Among the 100 samples taken, 81 customers buys MILMA products. Samples are
taken from specified zone of Kannur District.
2. Of the 81 samples, 82.72% came to know about milma from Advertisement, 6.17%
knows from Relatives,3.7% and 7.41% knows from T.V. and Other sources respectively.
4. The data reveals that majority of customers are satisfied with the quality and
Freshness of milk products.
5. A major section customers opinion is neutral that the price of milma is high as
compared to other products.
6. Majority of customers strongly agree that they can find it easy to buy the product
because of its availability.
Suggestions:
1. Milma is branded product, therefore customers have a view that company is adding
preservatives in the products. So company want to take necessary action to change their view.
3. Even though, the customers are fairly satisfied with its price,quantity&quality
necessary steps should be taken to upgrade the satisfaction level of customers to maintain
market stability.
4. The customers might switch to the competitors product if milma charges high price
so in order to argument brand loyalty should charge reasonably.
6. Ice creams are not available in certain area Kannur district, therefore more agents
should be sent to this area.
Conclusion:
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, price, quantity, quality, and easy availability.
Finally I conclude that, majority of the customers are satisfied with the milma & other Milk
products because of its easy availability, good quality, & reach ability & accessibility. Some
customers are not satisfied with the milma & other Milk products because of high price,
spoilage etc. therefore, if slight modification in the marketing programme such as promotion
programmers, product lines etc., definitely company can be as a monopoly and strong market
leader. Milma has also to take care of its competitors into consideration and more importantly
its customers before making any move.
Appendices:
Respected sir/Madam
4. ADDRESS: 5. OCCUPATION:
14. Are you satisfied with reachbility and accessibility of Milma product?
Yes No
a) Milk: ………………………………………………………………………
………………………………………………………………………
b) Curd ………………………………………………………………………
………………………………………………………………………
c) Buttermilk ………………………………………………………………..
……………………………………………………………………….
d) Ghee ………………………………………………………………………..
………………………………………………………………………..