“A STUDY ON CONSUMER SATISFACTION”

SYNOPSIS

Customer satisfaction means is a persons feeling of pleasure or

disappointment resulting from comparing a products perceived
performance in relation to his or her expectation.

If the performance is false short of expectation then customer

is dissatisfied. If the performance matches the expectations the
customary satisfied. If the performance exceeds expectations, the
customer is highly satisfied or delighted.

The link between the customer satisfaction and customer

loyalty is not proportional Suppose customer satisfaction is rated on a
sale from one to five :

1. At a very low level of customer satisfaction, customers are

likely to abandon the company and event bad – mouth it.

2. At levels two to four customers are fairly satisfied but still find
it easy to switch when a better offers comes along.

3. At level five the customer is very likely to re purchase and even

spread good word of mouth about the company.

 High satisfaction or delight creates an emotional bond with the brand
or company not just a rational preference. Xeroxes senior
management found out that its “completely satisfied” customers are
six times more likely to repurchased the Xerox products over the
following eighteen months then its “very satisfied” customers.

CUSTOMER EXPECTATIONS:

From past buying experience friends and associates advice, and

marketers and competitors information and promises. If marketers
raise expectations too high, the buyer is likely to be disappointed.
However if the company sets expectations to low it won’t attract
enough buyers (although it will satisfy those who do by) some of
today’s most successful companies are raising expectations and
delivering performances to match. These companies are aiming for
total customer satisfaction. Customer demand is a very important
element in the marketing system.

CUSTOMER VALUE:
Customer value means, “to create customers” however
customers face vast array of product and brand choices, prices and
suppliers.
We believe that customers estimate which offer will deliver the
most value.
 Customers are value-maximizes with in the bounce of search
costs and limited knowledge, mobility and income.

The form an expectation of value and act on it. Whether or not

the offer lives up the value expectations affects both satisfaction and
repurchases probability.

Customer perceived value is the difference between the

prospective customers evaluation of all the benefits and all the costs
of an offering and the perceived alternatives.

Total customer value is the perceived monetary value of the

bundle of economic functional and psychological benefits customers
expect from a given market of ring.

Total customer cost is the bundle of costs customers expect to

incur in evaluating obtaining, using, and disposing of the given market
offering.
 INTRODUCTION

1.DAIRY SCENE INDIA

Co-operative dairying in India is over 45 years old of the total

milk. Produced in India, about two –thirds is buffalo milk land still larger

proportion of buffalo milk is in the processed stage .The milk processing

industry gained momentum and repeatability in the then Prime Minister of

India, the Late Lal Bahadur Shastri, is over two and a half decades old. The

operation flood programme is 22 years old, and has entered phase 3.The

milk sector is the second largest contributor to the agricultural economy in

terms of produce. In 1990-91, the co-operative collected nearly 10 million

and marketed 8 million liters of liquid milk per day.

The annual milk production of India is expected to increase

from 5.37 crore tons in 1991 to 5.64 crore tons (anticipated) in 1991-92. Of

this production about 45% 1used for fluid consumption, the rest is converted

into products such as ghee 33%, dali 8%, butter 6%, kova 5% and cheese,

ice-cream and milk powder 3% .It should be pointed out that most of the

milk is channeled through the local vendors or consumed directly, the

processing of milk increased from 22, 000 tons (1970) to, 1,65000 tone

(1992).

India has 25% of total animal wealth of world, however the

milk production is only 6.5 %. This miserable situation is due to low

productivity of animals in India .The estimated demand for milk is 64.4

million tons by A.D. The agricultural contributes 46% of national

income, the dairy industry contributes 10% of agricultural income, Which

amount to 5% of the national income.

DAIRY DEVELOPMENT IN INDIA = (1950 –1970)

(Piecemeal, fragmented and stagnant)

This must be viewed in contrast to what was happening, else

where in India, during the same period, in the sphere of dairy development.

In the first four five year plans (ending 1973 –74) over Rs. 5000 million had

been spent on these activities .Yet, in this period milk production stagnated

and the per capital availability of milk declined from about 132 gms / day in

1951 to 107gms in 1970 .The urban milk trade was largely in the hands of

private traders, who together with middlemen, exploited both the producer

and the consumer. Such a structure acted as a setback to the development of

rural population engaged in dairy farming.

 A piecemeal approach to rural dairy development did title to improve

this position. Animal husbandry was considered an activity for the rural

areas, whereas dairy development was only on the cities .For the farmer

projects such as the key village scheme and the intensive cattle development

program were taken up These were aimed at improving milk yields through

better management of cattle and eventual up gradation of breeds. These

projects the themselves never paid much attention either to the marketing of

the additional milk that was supposed to produce, or to it’s processing.

Indian dairying is marked by high seasonal fluctuations of milk

production. This is caused by the breeding cycle, as well as feeding

practices. Mostly, crop residue is fed to animals; the availability varies from

season to season. There is therefore a flush season, when milk animal

produce nearly doubles the quantity of milk they do in the lean season .At

that time results in animal gluts.

Dairy development means setting up modest sized (10000 –250000

liters per day) liquid milk processing plants even in cities with population of

5, 00, 000 or more. Even if the plants had functioned to their full capacity,

which they did not, public dairies could have had only about 10-15 % share

of the market. This meant that urban private milk trade could continue
unchecked .The link between the rural producer and the urban processor,

both public and private, remained unchanged.

CREATION OF NDDB

In 1964, the then Prime Minister of India, the Late Lal Bahadur

Shastri, visited Anand. From his observations and discussion with farmers

over there, the Prime Minister could infer that the Kara farmer had no

special advantage agro –climatically or in the quality of his cattle ‘He

concluded that because the village societies and the district union and

because they had the good sense to employ competent professional to

manage their dairy factories, the AMUL dairy was sensitive to their needs

and was responsive to their demands. Their access to a metro political

market –Bombay for milk, and good national marketing in the case of dairy

products, were their greatest assets these were the reasons why AMUL has

such a great success.

The Prime Minister also wanted to know why, when AMUL was

doing so well the other dairies run by the central and stage governments

were not successful ‘He desired `Anand ` be relocated thought India .He

said, in a letter addressed to the state Chief Minister, ``we envisage a large

programmer of co-operative dairies during the fourth plan and this will be
based on the Anand Model .If we can transplant the spirit of Anand in many

other places, it will also result in rapidly transforming the socio –economic

conditions of the rural areas .He decided that the government of India would

create a body , whose job would be to replicate `Anand `The national Dairy

Development Board (NDDB )Was thus created in 1965 .

Initially, the concerned officials objected to the Anand pattern were

not prepared to make five year plan funds available for replicating `Anand

`in their state .for some years, NDDB tried in vain to convince one state after

another to agree to make these funds available. It became obvious that if the

NDDB was to carry out the objectives for which it was established, must

have its own programmes and funds to replicate the Anand pattern. It was

thus, that operation flood was evolved.

The National Dairy Development Board (NDDB)

CONTINUED AS THE LEAD Implementing agency of the science and

technology project on embryo transfer (ET) of the department of

biotechnology, ministry of science and technology, the project has

established and embryo bank with about 1706 cattle and 278 buffalo

embryos, frozen and cryo –preserved.

Operation flood Programmed in India

The objectives of operations flood were to replicate Anand. The

state government could use their own funds to develop dairying in which

ever way they choose, but the additional funds available under operation

flood were to be used only replicating Anand '

Operation flood, the larges development program undertaken in

the world, was initiated closely on the heels of green Revolution the country,

against the backdrop of huge surplus of milk production in the highly

developed milk producing countries in the west and winding per capital milk

availabity at home. According to the agreement signed by the world food

programme (WFP )AND Government of India , the WFP will arrange to

supply 126000 metric tons of butter oil , which the corporation will handle

on behalf of government .Utilization of these commodities would generate

funds estimated at Rs . 954 millions during the projected period. These funds

are to be invested in the plan of operations agree WFP and government..

By 1968, NDDB has formulated the first phase of operation flood,

which aimed to capture for public dairies a commanding share of the milk

market in the four metropolitan cities of Bombay, Delhi, Calcutta and

Madras. It also aims at speeding up the dairy development by increasing

milk production and procurement in rural areas, which supply milk for four

cities

In order to achieve the desired objectives of the project, the following

order of implementation has been adopted.

1. Quick expansion of urban handling capacities by expanding the dairy

in Delhi, Bombay, Calcutta and Madras and by setting up new liquid

milk plants. So the total capacity of the organized sector would be

increased from .1million liters a day in the four major cities.

2. Supply of WEP commodities –skimmed milk powder on butter oil for

production of recombined milk to speed up full utilization of

expanded capacities.

3. Setting up rural milk producer owned co-operative organizations to

produce, process and market milk on the had and to market technical

inputs for milk production on the other.

4. Implementation of milk production enhancement programs with long

term objectives of achieving self sufficiency in milk ‘

5. Establishment of rural feeder /balancing dairies to coup existing milk

available to replace combined milk produced by use of WFP’.

6. Development of the basic transportation and storage facilities to

facilitate regional and seasonal and seasonal balancing of milk supply

and demand.

7. Resettlement of the milk animals from the four cities in the rural areas

as result of economic pressure created in urban areas by large outputs

of milk from city dairies.

Phase operation flood –1 operation – 2

Operation flood –3

Duration =July, 1970-March, 1981 April , 1981 –March ,1985 April, 1985

March 1990.

Funds

Rs.million) 1,165 2,771

6,013(PROPOSED)

Operation flood, which is based on Anand of dairy co-operatives in

the country, is currently in its third phase of implementation, which will run

through, 1994. The programme is being implemented in 170-milk sheds

spread over 22 states and union territories, can handle 14.3 million liters

milk daily. Until December 1991, over 79 lakh farm families had been

brought under the co-operative ambit through a network of more than 64200

dairy co-operative societies. About 15 %of total members of dairy co –

operative are women. An important achievement of the program is the

emergence of a national milk grid, which helps offset regional and seasonal

imbalance in milk collection distribution

The OFP, being implemented by the NDDB, aims to enhance the

average milk procurement to 13.7 million kilograms per day (MKGPD) BY

THE YEAR 1996, The concluding year of the OFP –3 The peak

procurement level during the same period is expected to reach 18. 3 mkgpd.

The comparative figures both during 1987, the base year of the OFP –3,

were respectively, 8.5 and 11 .2 mgpd. Efforts are also being made to

increase capacities of milk and milk powder.

Technology Mission on Dairy Development (TMMDD)

The technology mission on dairy development (TMDD) CONTINUE

LAY emphasis on dove tailing of on going state government programmers in

animal husbandry and dairy development .The endow red committee for

(TMMD) REVIEWED some of the existing status related to dairy

development have been identified to support the mission. These

programmers have been assigned to the Nation research institute. Indian

Veterinary Research Institute, NDDB, Indian grass forage Research Institute

and to the Agricultural Universities or a time bound basis .Annual action

plans (1919-92 )detailing two operational linkage with agencies operation in

the field of Dairy development are being implemented in 113 operation

flood districts .

Milk Processing Units

MILK processing activities are being carried out either of the

following organizations private, government / semi –government co-

operatives .THE Private sector mostly processes high margin western dairy

products ‘Government / semi government organizations own most of the

liquid milk plant, whereas the co-operative sector has both liquid milk and

milk product plants .The organized dairy industry comprises about 100

liquid milk plants 26 dairy product factories and 68 pilot rural milk schemes.

The first two have an installed capacity if about 30 lac liters of milk per day

with 26% utilization. The pilot plants have capacity 2.3-lac liters per day. Of

the 194 dairy processing plants in the country, it may be emphasized that at

least half are of only 10000 liters daily capacity.

Out of 194 dairy processing plants in the country, therefore 27.241

primary milk supply co-operatives are functioning in U. P. Gujarat,

Maharastra and Punjab . At the national level there is national federation of

dairy co-operatives.

It is observed that the liquid milk every day .For milk products about

27000 tones of infant foods are produced per year. Skimmed milk powder
production is about 15000 tons per year .The total milk powder production

now is 50, 000 tons per year.

The processed and pasteurized milk is in both bottles and produces.

Tinned milk with 3-3.5% fat and high fatty milk is being processed.

Sterilized flavored milk is processed only in limited quantities. Among dairy

products, the organized dairy industry produces ice-cream manufacturers

almost executively by milk plants. Most of the indigenous dairy products

such as kova based sweets dali and Shirked have not yet attracted the

attention of the organized section and are largely limited to local

manufacturers.

The importance of dairy development in India has been recognized in

the 58 the annual session of the international dairy federation (IDF) and in

the 19 the International Dairy Congress (IDC) held in New Delhi in 1974.

The 19th international congress was of significant importance to India with

its main theme being ``dairying as an instrument of social and economic

change. The importance of dairying extends well belong the more

production of milk produats ‘It has provided numerous small / marginal

farmers and agriculture laborers with supplemental employment and a

regular sources of income .The significant role played by co –operatives in

simulating dairying has also proved too be and important source of progress.
Current dairying scene in India

With the deli censing of the dairy industry in the new industrial policy

1991, the demand for the raw material -liquid –milk -for conversion on to

high value products such as cheese, butter and chocolates would increase,

leaving very little to drink. Private companies may not be able to proved

facilities to milk producers as the NDDB has through the OFP. But their

contribution to higher production is indisputable. Apart from the off take of

produce, private companies helped milk procedures through extended

service and health care facilities for animals. However, their scale of

assistance is limited to the extent of their needs, leaving the NDDB to ensure

a steady supply of milk at a reasonable price. With more dairy units expected

to be set up by multinationals and big Indian companies, small dairies units

expected to be set up by multinationals and big Indian companies, small

dairies might be lured by the prices offered. Already 250 applicants plan to

add to the existing capacity. Most of them are for the production of milk

powder, baby food, butter, cheese and ghee. About 700 memorandums were

submitted for the establishment of new dairy plants .Two proposals to

produce import oriented milk products like lactose on case in were already

given clearance by the government. Though India stand first in having milt

animal, it only stands third in processing milk.

 Proposals are being made to decanally dairy products which are to be

exported .At present the NDDB is carrying out the export activities of milk

products. During 1992 skimmed milk powder worth 30 lac dollars had been

exported. This year it is anticipated to 100 lac dollars worth exports .The

decanal zing policy is too be adopted, the exporting firms should oblige the

norms and conditions laid by the NDDB. NDDB has decided to establish a

trading company at Singapore to improve Indian Exports of milk products

and oilseed cakes .Too meet the export standards of milk products it is

proposed to establish two big dairies in Gujarat with an investment about

Rs .100 crores.
 PRODUCT PROFILE

MILK POTENTIAL

Milk is the only natural product, which is a complete source of food.

its nutritional potential is unsurpassed by any other food used by man. The

proteins in milk are ideal in quality and balanced to satisfy human amino-

acid requirements. The contents of minerals and vitamin are unique, not only

in proportion but in quantity also except for vitamin C and iron, milk

provides all the nutrients that are essential for man s growth and

development.

According to Prof .N.J Ropeman of Harvard Medical School. “ Milk

is the only article of food that family represents the complete diet”. For

nutritional development milk has no substitute .Man has yet to devise a

product superior to natural milk for presenting a correct malnutrition. Milk is

also a cheep source of animal protein ‘It is on this account milk became an

integral part of Indian food to both vegetarians as well as non –vegetarians

‘This is true for milk as well as its by products.

One should note that it is protein and the other essential

micronutrients such vitamins and mineral which from ‘Solidsm not Fat ‘

(SNF) part of the milk, that is important in milk than fat, to weigh the

nutritional value of the milk.

Milk constituents

Milk is the characteristic secretion of the mammary glands of all the

female mammals. According to the prevention of food Adulteration Act

(PFA), Milk is the secretion derived after complete milling of health milk

animals. It may however be added for clarity that the secretion obtained with

15 days before and 10 days after calving, or such longer period as be

necessary to render the secretion cholesterol free, is considered as milk.

Milk has a very complex composition .Its constituents are dispersed in

an aqueous solution, such as chlorides, sodium and potassium are molecular

dispersion, phosphates are in colloidal dispersion, and the fat is present in

emulsion.

The composition of milk of different species varies the gross

percentage. All milk contains the same kinds of constituent s ad described,

but in varying amounts, within a species genetic factors and environmental

conditions such as the climate and stage location influence the composition.

Milk is most important diet of human beings. In our country every

individual has to consume 210 grams of milk per day for better health

position. However, the day (Sangam Dairy Magazine, May 1986) as against

the world average of 303 grams. Hence malnutrition can be easily wiped out

in country by developing the dairy industry.

DAIRY INDUSTRY
The programmer of dairy industry was initially maintained with
commendable help of the United Nations International Children’s
Emergency; fund and freedom from hunger campaign of U.K. these
organizations contributed a lot in the establishment of dairy units in Andhra
Pradesh during the period 1967-1969.

The milk producers have been faced with lot problems in the process
of production and marketing of milk namely improper transport facilities,
poor technology and absence of organized system of processing marketing
and pricing. It was at this context that the Government of Andhra Pradesh
has viewed to constitute a dairy Development Corporation to safe guard the
interest of milk producers and ensuring adequate supply of fresh milk at a
reasonable price to the urban consumers. As a result the APDDC came into
existence on 2nd April 1974.

CO-OPERATIVE FEDERATION

To implement Operation Flood – 2 programmer through active

Involvement of producers in organizing milk production, procurement
processing and marketing on “three tier” cooperative structure as per the
national policy of Government of India, Andhra Pradesh Dairy Development
Cooperative Federation was constituted in October 1981. The three-tier
system includes primary village level dairy cooperative societies,
cooperative union at district milk shed level and a state level federation.
 For dairy development programmer in Andhra Pradesh the Indian
Dairy Cooperation offered financial assistance of 78.51 crores with 30% of
grant and 70% on loan basis. The National Dairy Development Board for
implementation of Operation Flood 2 programme identified sixteen districts
out of 23 districts in the state. With the implementation of operation flood 2
programmers in Andhra Pradesh, dairy development has gained momentum
providing a trust to eradicate the poverty and unemployment in rural areas
and brought greater awakening and confidence among producers to manage
their own affairs through dairy cooperative of Anand Pattern. The dairy
development in Andhra Pradesh is presented in the following table.

The promise for India’s Dairy development lies in recognizing the

need for a substantial increase in production of liquid milk. Presently, milk
products fetch relatively higher price than liquid milk and this has directly
boosted he output of value added products. Higher demand and better prices
than the western products such as tangle, Butter, vogurt, cheese, ice cream,
milk powder. However the importance of liquid milk and its influence on the
market cannot be underplayed since it meets a basic need of lage particularly
since 1985 the liquid milk has witnessed and upswing in price. For the
development of any activity a rational pricing policy is ital. This is more so
in case of daring where a positive price policy acts as a catalyst for growth
by motivating the farmer to segment milk production line this four key
determining factors are. The price farmers should recessive for milk.

The under given tables show how the milk has been marketed in the
Urban areas, prices of milk and milk products consumption of milk and milk
products in India. Household consumption of silk in the metropolitan cities
and share of milk marketed by various systems.

DEMAND FOR MILK

With the anticipated growth of purchasing power in urban areas, the

demand for milk is estimated to rise substantially according to one estimate;
it is likely to be 97.7 million tones by 2002 AD as against 35.01 million
tones in 1982. The information regarding the population, it’s economic
demand and nutritional demand is given in the following table.

Today the consumer repay is chasing many more processed food even
in rural areas this trend is likely to faor packaged milk and milk products
that offer multiple benefits of convenience hygienic and good value for the
money spend on them. So change in the product mix is emerging the rural
market is – expected to grow much faster than the urban market in terms of
market shows uncertain milk products. The rural folks are now purchasing
more placed milk products making efforts to make them at horn. Already the
share of milk sweets is showing a slow increase in the total product mix.
There is scope for exports of milk products in developing countries, which
represents a major challenge. The dairy sector needs to study the direction
and growth in milk markets to develop an ocher strategy for making dairy
enterprises viable. Where they are not and more wherever there are
possibilities future targets in marketing evolve there from.
COMPANY PROFILE

In a small hamlet in the remote corner of Andhra Pradesh, a family of

four wakes up at 4.30 a.m. Looking forward to another busy day. The young
mother of two tends to her 6 year old daughter and turns her attention to her
three cows, which have now become a part of her family as well. She is
greeted with affection and a lot of jostling. She gives them their feed and
water and begins sweeping and washing the surroundings. Meanwhile her
husband joins to do his part of the daily chores. Preparing the feed and
examining the cows before starting to milk them. This has been their sacred
routine for the past two years, ever since the family bought their first cow by
taking a loan from Heritage Foods (India) Limited. Today, this family
supplies Liters of pure, fresh milk every day to Heritage, without a break. In
the districts of Chittoor, Guntur, Khammam, Nellore, Prakasam, Vizag of
Andhra Pradesh alone there are close to 1,00,000 such families, who
together supply milk to Heritage, every day, earning their livelihood and
supplementing their income in the know lee.

1992 Heritage Foods (India) Limited was incorporated as a public

limited company under the Companies Act, 1956 with its Registered and
Corporate office at Hyderabad, Andhra Pradesh in South India with the
primary object of manufacturing and supplying quality Milk and Milk
Products to the diverse populace. Taking off with its flagship processing
plant at Chittoor, Andhra Pradesh in April 1993, Heritage spread its wings
during the years hence. To raise resources, Heritage went public in
November 1994. This Public issue was oversubscribed 54 times – a moving
Testimony to the level of confidence the investing public reposed in the
promoters and in the management of the entire. Currently Heritage services
around 14500 resident and non-resident shareholders.

1995 Under the able guidance of eminent people like Sri D

Seetharamiah, Dr R Nagarcenkar, Sri S N Daga, Sri N P Ramakrishna, Smt
N Bhuvaneswari and Dr V Nagaraja Naidu, the then Directors, Heritage
continued to embark on its ambitious has of expansion. The Directors with
their varied & extensive expertise and experience in the fields of
Agriculture, Industry and finance and their intimate understanding of the
rural socio economic scenario have been able to strengthen the systems and
strategies of Heritage, which contributed to the current status of Heritage as
a leading player in South India. Heritage set up with a primary objective of
bringing prosperity through co-operative efforts to rural families of Andhra
Prdesh has more than succeeded in its endeavor. It has grown leaps and
bounds in the process. By choosing Chittoor district of Andhra Pradesh as its
primary procurement base of milk, Heritage had taken full advantage of the
large, high yielding and crossbred cow population found in the area, which
has become the secret of the success story of Heritage. Designing and
relentlessly implementing carefully chalk it out milk production and
development plan; Heritage has penetrated deep into rural areas. It has
succeeded in convincing people even in tiny hamlets to take to dairy farming
as a way of supplementing their daily income.
 Today there is a network of above 140 milk collection routes, above
3000 milk collection agents and1, 40,000 dairy farmers who supply
approximately 3,75,000 liters of milk every day. And an established
distribution network with 1200 milk agents for distribution of sachet milk
and 300 distributors to handle Heritage Milk products. Today, Heritage is the
largest milk and milk products producing private sector enterprise in South
India.
For a Dairy Company in India, distribution is an invaluable asset,
which when managed well becomes a key competitive strength. The
scattered nature of India’s population, though connected by motorable roads,
implies a high cost of penetration, considerable complexity of logistics and
challenges of customization to consumer needs. In a short time, spanning
just five years, Heritage has been able to establish a strong brand equity that
commands loyalty not only among the consumers but also with the trade.
Responding to the changing needs of customers, Heritage forged ahead
translating their desires into marketable products with an ever-expanding
base of loyal Consumers. Today, a whole rang of dairy products are
marketed under the brand “Heritage” and are extensively distributed in states
of Andhra Pradesh, Karnataka, Kerala, MadhyaPradesh, Maharashtra,
Orissa, Tamil Nadu, and West Bengal and in the Union territory of
Pondicherry.
“First dairy in Southern India to be accredited with ISO 9002: 1994
certification”.
Heritage’s soul has always been imbibed with an unwritten perpetual
commitment to itself, to always produce and provide quality products with
continuous efforts to improve the process and environment. Adhering to its
moral commitment and its continuous drive to achieve excellence in quality
of Milk, Milk products & Systems, Heritage has always been laying
emphasis on not only reviewing & re-defining quality standards, but also in
implementing them successfully. All activities of Processing, documented
with detailed quality plans in each of the departments. Heritage is the first
dairy Company in Southern India to have been awarded the ISO 9002: 1994
certification for implementing quality systems in processing, packing &
selling of Liquid Milk at its plant at Narketpalle, sales office & Registered
office at Hyderabad. Today Heritage feels that the ISO certificate is not only
an epitome of achieved targets, but also a scale to identify & reckon, what is
yet to be achieved on a continuous basis. Though, it is a beginning, Heritage
has initiated the process of standardizing and adopting similar quality
systems at most of its other plants.
“Give Yourself & Your family the best quality Products – The Hygienic
way”
Centering its processes on manufacturing safe, healthy,
functional wholesome food products, Heritage evolves everyday to
understand and make true the concerns of the consumers in relation to
freshness, taste & texture and vitally hygiene. At Heritage quality of the
Milk and Milk Products equates to survival and growth of the business.
Factors such as plant conditions, manufacturing practices, housekeeping,
sanitary standards, personal hygiene and work habits of employees and
visitors, assume critical importance in control of quality, product safety,
personal safety and financial integrity. And the origin, i.e., the dairy animal,
assumes much higher predominance since; its health, its safety, its hygiene
and its productivity are the business enablers for an y Company in the Dairy
sector. Focusing on all aspects of quality right at procurement (from farmer),
chilling and transportation of Milk to the processing plant and finally
through the pasteurization, homogenization, packing and delivery to your
door step, Heritage strictly adheres to ISO – self-developed standards, at all
its plants. Heritage milk & milk products are efficiently handled and
processed at unsurpassed levels of hygiene at all stages.

Heritage believes that Governance is:

 An ability to operate in a self-drive, self- regulated, self-disciplined

And self-assessing mechanism with a social conscience.

 A voluntary mechanism - in which there is free, independent and

Unbiased monitoring.

 Operating in a congenial work environment where the communication

is effective,

 With a higher degree of transparency in management of affairs and in

financial and non-financial corporate disclosures.

 Which realizes the Company’s accountability to all stakeholders,

especially to minority shareholders and ensures fairness in dealings
with them.

 An on-going corporate transformation requiring openness to new

ideas in a climate where there is diversity of views; heightened
awareness and people seek change.
 Heritage feels the need for Corporate Governance not because it is
mandatory, such Governance is in the interests of the Company, as it would
not only increase and improve the rapport between Board, Management,
Employees, Customer, Shareholders and other Stakeholders, but also it will
enhance mutual confidence and trust among them. The structure, processes
and practice of governance enable focus on the good corporate culture while
simultaneously facilitating effective management of the business.

A Beginning

Heritage is currently in the process of evolving in inter-linked

Governance code, which is a wholesome balance between the need for focus
and executive freedom, and the need for supervision and control. At
Heritage, the key differentiator, with everything else being common, will be
the ability to create a self-driven, self-assessed, self-regulated Organization
with a conscience. Heritage continues to build trust with customers,
suppliers, creditors and diverse investors – trust that its Milk and Milk
Products can be relied on, that it will be managed properly, will successfully
perpetuate its business, will protect and enhance the capital of its invertors,
and will increase corporate value. Heritage has already in place a balanced
mix of executive and non-executive directors constituting a fair majority. An
Audit committee predominantly comprising of non-executive directors has
been constituted to continuously review the concepts, systems, policies,
procedures for achieving higher accountability, smooth& transparent
functioning, and informative reporting. The Board currently carries the
responsibility of approving the strategic plans and such other vital functions
that have been explicitly elucidated in its guidance module. Statutory
Compliance is a routine function at Heritage. Change, evolve and govern,
while adapting to the era to which you belong – Technology – specially
“Information Technology” is the name of the game.

Considering Information Technology as a very critical tool for

providing this competitive edge in business, Heritage successfully
implemented ERP packages (containing Accounts, Fixed Assets, Human
Resource, Payroll, Marketing, Procurement, Production, Purchase, Quality
Assurance and the Stores integrated modules) at all its locations, thereby
also building a communication network. Heritage is now operational zing
the information as a resource, which may be put to use in creating informed
products or in developing new and more effective business strategies,
objectives or Organizational missions. Various other IT initiatives in the
areas of customer relationship management, shareholder servicing and
farmer development programs are being evaluated so as to bring in more
efficiency. This would help in bringing about a faster response to the
changes in the market place and provide better service to them. Helping
hand what cattle is to a dairy farer, farmer is to mankind. And so are a dairy
farmer & his cattle to Heritage – “Its Strength & Indispensable life support”.
Heritage has always endeavored not only to understand what assumes
critical importance in caring for the dairy farmer and his cattle, but also to
make him understand that good environment, milking practices,
housekeeping, sanitary standards, personal hygiene and his work habits; And
maintain balanced nutritious diet, health, safety, hygiene and the
Productivity of his dairy animal should be a natural thing to do. Being a
catalyst between the farmer and itself, Heritage undertakes several integrated
activities, some of which include.
 Distribution of regular Agricultural Inputs to dairy farmers viz., feed,
Hybrid seeds, mineral mixtures at subsidized prices.
 Growing fodder and providing it free of cost to farmer.
 Veterinarians, etc., arranging seasonal cattle vaccinations & dew
Arming through a trained team.
 Arranging Medical camps and supplying medicines for dairy animals
Free of cost.
 Providing medical attention to dairy animals through Heritage’s
Trained vet doctors.
All of which have not only resulted in preventing the outbreak
of cattle diseases, but also in improving the Milk yield.
Heritage also undertakes to
 Provide loan support to farmers for purchase of much animals under
Its security and cattle insurance thereon.
 Organize “Rythu Sadassu’s” (farmer group meeting) aimed not only
At motivating the farmer to adopt better and latest practices in Dairy
farming (including scientific feeding) & preventive health measures,
but also at providing well-built facilities and training to adapt such
trends in realizing higher quality milk yield.
 Not only train people in villages to provide veterinary first aid and
Insemination services, but also, carries out Artificial Insemination by
trained personnel, for improving the genetic potential of livestock.
 Identify and supply quality breeding Bulls with good pedigree to
farmers, in order to edge over the highly diverse livestock genetic
resources reared under widely varying agro-ecological conditions of
the Country.
“We have grown, and intend to grow, focusing on harnessing our willingness
to experiment and innovate, our ability to transform, our drive towards
excellence in quality, our people – first attitude and our Strategic direction.
The future of the Organization rests on these enablers, which shall be the
investment Heritage makes for carving itself”.

In this emerging new context of the Indian Milk sector, the need to further
improves Heritage’s potential in terms of the scope.

 To enhance supplies to meet the growing demand,

 To enhance productivity of the cattle and the capacity of farmers,

 To establish and integrate the cold chain, packaging and transportation

Facilities for more milk in unadulterated form from village collection
Sites to the length and breadth of the Company.

 To take advantage of the international market under the regime o

Reduced subsidies are multi-faceted and necessary.

This is the exciting challenge, which Heritage grids itself to take in its
pursuit to add value to its existence. Heritage has initiated the process of
entering into branded food segment of the growing food retailing sector and
plans to launch “Heritage” brand Agro processed food products during the
current year of operations and is also exploring the avenues of launching ilk
based nutritional products in collaboration with a US based Company.
Quality
“First dairy in Southern India to be accredited with the ISO 9002:1994
certification”
Heritage’s soul has always been imbibed with a unwritten perpetual
commitment to itself, to always produce and provide quality products with
continuous efforts to improve the process and environment. Adhering to its
moral commitment and its continuous drive to achieve excellence in quality
of Milk, Milk products & Systems, Heritage has always been laying
emphasis on not only reviewing & re-defining quality standards, but also in
implementing them successfully. All activities of Processing, Quality
control, Purchase, Stores, Marketing and Training have been documented
with detailed quality plans in each of the departments.

Heritage is the first dairy Company in Southern India to have

been awarded the ISO 9002:1994 certification for implementing quality
systems in processing, packing & selling of Liquid Milk at its plant at
Narketpalle, sales office & Registered office at Hyderabad.

Today Heritage feels that the ISO certificate is not only an epitome of
achieved targets, but also a scale identify & reckon, what is yet to be
achieved on a continuous basis. Through, it is a beginning, Heritage has
initiated the process of standardizing and adopting similar quality systems at
most of its other plants.” The crux of all activity, accredited with the ISO
9002 certification for implementation of quality systems & standards”.
 A modern transportation fleet complements the plant facilities, which
not only humbly begin at the milk procurement agents, carry fresh milk to
the processing plants, then to the packing plants, where necessary, but also
finally deliver milk & milk products to marketing areas located in the South,
North and Eastern India.

Main Dairy plant

Today there is a network of above 140 milk collection routes, above
3000 milk collection agents and 1,40,000 dairy farmers who supply
approximately 3,75,000 liters of milk every day. And an established
distribution network with 1200 milk agents for distribution of sachet milk.
And 200 distributors to handle Heritage Milk products. Main Dairy Plant
“Gokul” at Kasipentla Installed Capacity: 1,00,000 liters per day.

Nestling amongst lush green trees on the footsteps of Tirumala, the

abode of Lord Venkateswars, “Gokul” is a sprawling 22 acres, state – of- the
art milk processing plant, in environs, which reverberate quality and
hygiene. “Gokul” is a combination of tradition and a futuristic invigorating
environment that caters to the cutting edge demand for Heritage Milk and
Milk products. The plant is equipped to manufacture international quality
products like table Butter, Cheese, Ghee (butter oil), Skimmed milk powder,
Dairy whitener among others.
PROCESSING AND PACKING PLANTS
Chittoor
Installed Capacity: 50,000 liters per day commissioning
April ’93 Being, Heritage’s primary procurement base of milk, Chittoor
houses its first processing and packing plant in the journey to success.
Having taken full advantage of the large, high yielding and crossbred cow
population found in the area, the plant achieves a perfect synchrony between
the milk demand and the supply system for the Chennai market.
Shanthipuram
Installed Capacity: 50,000 Liters per day Commissioning February
95 The Shanthipuram processing and packing plant facilitates timely milk
supply to meet the requirement of the Kolar Gold fields and the surrounding
areas and the additional requirements of the Bangalore market. Also seen is
the fodder crop being growing to provide as input to dairy farmers.
Narketpalle
Installed Capacity: 75000 Liters per day commissioning: June 95.
In the beautiful and fresh environs, just 85km from Hydearabad, located on
the Vijayawada – Hyderabad highway, Narketpalle processing and packing
plant is the first in southern India to be accredited with ISO 9002
certification. Processing and packing liters of fresh quality milk every day,
the plant cater to the Hyderabad and Secundarabad milk market network.
Hyderabad, Cherugattu Village, Nalgonda Dist.
Bayyavaram
Installed Capacity: 25000 Liters per day Commissioning:
November 95.The bayyavaram processing and Packing plant, located
around 40km from Visakhapatnam, on the Vijayavada – Visakhapatnam
highway provides milk to the Visakhapatnam market Bayyavaram village,
Anakapalli taluq, and Vijayawada highway, Vizag Dist.
Yadavanahalli, Bangalore South
Installed Capacity: 1,000,00 Liters per day Commissioning: March
2000The strategic positioning of the Processing and packing station at
Yadavanahalli, so near to the Bangalore market, has not only proven
successful in improving the quality and timely supply of milk, but also the
sale at Bangalore reached the towering 1lakh liters per day mark.
Yadavanahalli village, Attibe; e – Hobli, Anekalk taluq, Bangalore South.
Procurement and Processing Plants
Piler
Installed Capacity: 40,000 Liters per day Commissioning:
November 93.The plant Procures and processes fresh milk every day and
puts the milk on an onward journey to the main dairy plant “ Gokul”
Yerraguntla Village, Piler – tirupathi Rd, Piler Mandal, Chittoor Dist.
Madanapalli
Installed Capacity: 40,000 Liters per day Commissioning:
August 94.Madanapalli procurement and processing plant is the
immaculately manicured, spacious work plant located in a rich cow belt area
catering the milk requirement of the Bangalore packing station. Basinikonda
Village.
Thiruvannamalai
Installed Capacity: 30,000 Liters per day Commissioning: August
97.Heritages first procurement and processing plant set up on the state of
Tamil Nadu in a rich cow belt area. Somasipadi, thiruvannamalai Dist.
Tamilnadu.
Uthangarai
Installed Capacity: 30,000 Liters per day Commissioning: August
98.the Uthagarai plant, located in cow belt, procures and processes milk for
onward packing at Asttibele and supply in the Bangalore markets.
Koorsamapatti Village, Uthagarai Taluq, Dharmapuri Dist. TamilNadu.
Muppavaram
Installed Capacity: 25,000 Liters per day Commissioning:September
98.Sprawling in a rich buffalo belt, the milk procured and process at the
Muppavaram plant after being packed at Narketpalle finally caters the ever-
growing milk markets at Hyderabad & Secundeabad. Bythamanjulu P.O.,
J.Panjaluru Mandal, Prakasam Dist.
Darsi
Installed Capacity: 25,000 Liters per day Commissioning: December
98.The Darsi plant, located in a buffalo belt, procures and processes milk for
onward packing at Narketpalle and supply in the Hyderabad &
Secunderabad markets. Darsi – Addanki Rd, Darsi, Prakasam Dist.
Atmakur
Installed Capacity: 25,000 Liters per day Commissioning: December
99.Atmakur plant, located in a buffalo belt, procures and processes milk for
onward packing at Gokul and supply in the Chennai Markets. Nellore –
Cuddapah Rd, Atmakur PO, Nellore Dist.
Santhamangaluru
Installed Capacity: 25,000 Liters per day Commissioning: December
99.The santhamagaluru plants, located in a buffalo belt, procure and
processes milk for onward packing at narketpalle and supply in the
Hyderabad & Secuderabad markets. Vinukonda Rd, Pithavaripalem Village,
Santhamagaluru mandal, Prakasm Dist.
Madhira
Installed Capacity: 25,000 Liters per day Commissioning: February
2000, The plant at Madhira which procure and processes milk for onward
packing at Narketpalle packing plant and supply to the markets of
Hyderabad and Secuderabad, Rayapatnam Village, Madhira - Nandigama
Rd.Nadhira Mandal.
Kandukur
Installed Capacity: 25,000 Liters per day commissioning: September
2001, Kakuture Village, Kandukuru mandal Prakasam dist.
HERITAGE PRODUCTS

Milk
Heritage milk a natriive. Rich, fresh, wholesome food par excellence
with self-contained protective characteristics. Hygienically Procured,
pasteurized and poly packed under PFA standards, Heritage milk is
acomplete food for any age, be it children, teenagers, adults, expecting
mothers or older citizens. Rich with just about all – essential nutrients…..
Heritage Milk is full with strength building proteins, energy giving
carbohydrates & fats, bone & teeth buildimg calcium & phosphorus and the
essntial life giving vitamins.

Composition
Variety ( % ) Fat (%) SNF
Whole Milk 6 9
Homogenized Toned Milk 3 8.5
Standard Milk 4.5 8.5
Double Toned Milk 1.5 9
Golden Cow Milk 3.5 8.5
Food Energy Milk ( W:30g) 105K Cal
Protein 6g
Fat 9g
Calcium 165mg
Iron 0.2 mg
Carbohydrate 1g
 Ghee
Agmark spcial grde heritage ghee is pure clarified sat made
from fresh cream, with no colors or preservatives, tantalizing the
human senses with its environing taste, aroma, rich texture. And
vitamins A, D, E and K as bonus. Check out!!! – the widest, most
convenient pack range of both Cow and Buffalo Ghee Originates from
the Heritage basket.

Pack Size
Pillo pack 100gms, 200gms, 500gms

Poly pack ½ kg, 1kg, 500ml, 1ltr

Duplex pack 200ml, ½ liter, 1 liter.

Tin 200ml, 500ml, 100ml, 5kgs, and 15kgs.

Composition
Milk fat 99.7 %
Moisture 0.3 %
 Skim milk powder
Heritage Skim Milk powder is a low fat & Calorie, high protein spray
dried milk powder made from fresh skimmed milk instantly dissolves in
lukewarm water, and tastes just like milk!!! With clean, rich, sweet and very
pleasant natural milk flavor, it flows fine and smooth and is homogeneous
in Texture. Used predominantly for food and sweet preparations at home, in
Biscuit and Ice cream manufacturing, in candy and Confectioneries, etc.,
Heritage Skim milk powder made from buffalo skimmed milk ( white
skim milk powder) and that made from cow skimmed milk ( yellow skim
milk powder) available separately.
Composition
Milk fat (max) 1%
Milk protein 35%
Carbohydrates 51%
Minerals 7%
Moisture 3.5%

Calorific value:350 kcal/100 gm

Pack Size
Carton 500 gm
Poly pack 1 kg bulk
 Dairy Whitener
Immaculately packed, heritage dairy whitener, simple yet rich instant
milk with instant nutrients, is a combination of skimmed milk powder and
sugar. its higher shelf life always saves you in the nick of time. you can
count on it!!! With fine granular texture and excellent natural miscibility, it
enriches milk drinks, soups, sauces, casseroles, desserts, etc.

Growth of the company

“Heritage is passionate about growth and compassionate about

people”
Adorned with the guiding spirit of the professional management,
dedicated managers, and the able support by a team of responsible, qualified
and experienced staff, sustaining growth and realizing dreams is real at
heritage. Over the years, heritage has built for itself stimulating work
culture that empowers its people, promotes team building and encourages
new ideas the focus on constantly raising the levels of competency and
capabilities and Providing the necessary learning inputs and a conducive
environment for both professional and personal Growth.

Heritage builds the strength of Core assets; people; Who are always
on a continuous improvement path with on ultimate aim to add value to their
intellectual and knowledge resources and to develop an environment, which
fosters performance.
 OBJECTIVES

PRIMARY:
* To measure the degree of awareness of HERITAGE MILK in
CHENNI.

* To find out the satisfaction level of consumers with respect to

HERITAGE MILK attributes.

* To study the effectiveness of HERITAGE MILK.

SECONDARY:
* To Find out the market position of HERITAGE MILK with
various other brands.

* To study the degree of effectiveness of advertisements

&promotional benefits on consumers.

* To analyze factors determining consumers choice of various

branded milk and the reasons for that choice.

* To know customers opinion on quality, price, packing of

HERITAGE MILK.

* To find out the reasons for not purchasing HERITAGE MILK

by the consumers.
 SCOPE OF THE STUDY

The study can help the company to study the following:

1. This study give s cheer information about consumer preferences on

different brands of dairy milk.

2. This study gives information about consumer awareness on Heritage

Milk.

3. This study gives information about to determine the brand leaders in

Chennai city.

4. The study is useful to know the consumer preference and their reasons

to prefer and not to prefer Heritage Milk.

5. This study is useful to amylase the price position of their choice.

6. This study is useful to know the impact of brand advertisement on

consumers.

7. This study is useful to know the sat is faction level with different

attributes of Heritage Milk .

 NEED & IMPORTANCE OF THE STUDY

Such Studies dealing with preferences of customers

towards a particular brand of a superior quality goods will be immerse use to

the industry as a whole. The Arrival of overall customers preferences as well

as the changes taking place in the customer preferences such a knowledge

will help the organizations in determine their product one as well as

promotional program. The data as collected from consumers survey to know

the following-

1. To find out the consumer brand preferences.

2. To find out the consumer awareness impact of advertisement and

consumer satisfaction level with respective of Heritage Milk.

3. To analyze pricing of Heritage Milk.

The above stated reason has lead to conduct the survey

about “A study on consumer satisfaction of Heritage Milk in Chennai

City”.
 RESEARCH METHODOLOGY

Research generally refers to a search for knowledge. It may be

defined as the objective and systematic method of finding solution to
a problem, which consists of systematic collection, recording,
analysis, interpretation and reporting of information about various
facts of a phenomenon under study. It plays a truly analytical
approach to decision-making and helps in the evaluation of the
decision that has been taken.

MATHOD OF COLLECTING DATA

The method adopted for the study is collecting data. The data
there are two ways.
1) Primary data
2) Secondary data

PRIMARY DATA:
Primary data is the data collected by the researcher of the
specific study. The study entitled “Consumer Satisfaction” with
special reference to HERITAGE MILK was carried in CHENNAI. To
get an accurate detail separate structured Questionnaires were
designed for customers. Discussions were held with customers. The
study is of 300 customers at different areas in CHENNAI CITY.
SECONDARY DATA:
Secondary data can be defined on the data collected by some
one else for the purpose of study. It is based on second hand
information. The data collected with companies past record, Journals,
Broachers and from the library.

SAMPLE SIZE
For the need of the study the customer survey was conducted.
The sample size for the customers were 300.

FIELD WORK
The study was conducted in Chennai city. Consumers were
contacted in person and data was collected with the help of the
Questionnaire.

ABOUT THE QUESTIONNAIRE:

The Questionnaire is the most common instrument used in
collecting primary data for the study conducted. Questionnaire are one
for the consumer were used. This types of questions included in the
Questionnaire are:
1. Multiple Choice Questions
2. Rating Questions
3. Ranking Questions and
4. Open-end Questions
ANALYSIS OF DATA

The statistical tools used for analysis were percentages ,one

way Chi-square. The presentation tools used are pie charts and bar
diagrams.

CHI-SQUARE ANALYSIS

Chi-square test developed by proof. Fisher is considered as an

important statistical tool for judging the significance of the sampling
data. It can be used to test for the statistical significance of differences
between two equivalent sets of categories i.e, the observed frequency
and the expected frequencies obtained from some hypothetical
universe Chi-square test helps us to test whether mote than two
population proportions can be considered equal. χ2 calculated with the
help of the following formula.

χ2 = ( Oi – Ei )² / Ei

Where Oi = is the observed frequency

Ei = is the expected frequency

The degree of freedom is calculated from the frequency table

called contingency table by using formula.
d.f = (c-1) (r-1)
where, C = number of columns,
R = number of rows
PERCENTAGE
It refers to a special kind of ratio that the used in making
comparisons between two or more data. It is used to describes
relationships and it is also used to compare the relative terms and
distribution of two or more data.

CROSS-TABLUATION
The method of analysis used most often in marketing

research is cross tabulation. This involves placing the collected data

into tabular from that their true meaning can be extracted. The cross

tabulation as a technique of analysis before thinking of highly

sophisticated and complex statistical formula. In cross tabulation the

points are to have un-dimensional data and separate into two are more

categories.
 TABLENO.1

Family size of the respondents

Size of the family No.of respondents Percentage

2 persons 3 1
3 persons 45 15
4 persons 150 50
Above 4 persons 102 34
Total 300 100

Inference:

The above table indicates that a majority of 50% of the

respondent’s family size is 4 persons, 34% of the respondent’s family size is

above 4 persons, 15% of the family size is 3 persons and remaining 1% of

the respondent’s family size was 2 persons.

CHARTNO.1
 FAMILY SIZE OF RESPONDENTS

160 150

140
120 102
NO.OF 100
RESPOND 80
ENTS 60 45 50
34
40
Chi-square Test

Ho : There is no significant different between the consumer satisfaction

and family size of consumers

.
H : There is significant different between the consumer satisfaction and

Family size of consumers

Oi Ei ( Oi – Ei )² (Oi – Ei )² /Ei
3 75 5184 69.12
45 75 900 12.00
150 75 5625 75.00
102 75 729 9.72
Total 165.84

χ2 = ( Oi – Ei )² / Ei ~ χ2 n-1

= 165.84 ~ χ2 4-1

= 165.84 ~ χ2 3

Degree of freedom = ( n-1) = 4-1 = 3

χ2 table value of 5% level of significance at 3 d .f is 7.82

H0: reject

Conclusion : since calculated value > table value.

 TABLENO.2

Respondents preferred or using milk

Type of milk No. of respondents Percentage

Cow’s milk 32 11
Buffalo’s milk 47 16
Packed milk 221 73
Total 300 100

Inference:

The above table indicates that a majority of 73% the

respondents prefer packed milk, 16% of them prefer buffalos milk and

remaining 11% of the respondents prefer cow’s milk.

CHARTNO.2
 RESPONDENTS PREFERENCE OF
MILK
11%

16%

Cow’s milk
Buffalo’s milk
73% Packed milk

TABLENO.3

Pack size preferred by the respondents

Pack size No. of respondents Percentage

200ml 25 8
 500ml 235 78
1 liter 40 14
Total 300 100

Inference:

The above tabulation indicates that majority of 78% of the

respondents prefer 500ml packets, 14% of them prefer 1-liter packets and

remaining 8% of the respondents prefer 200ml pack size.

CHARTNO.3
 PACK SIZE PREFERED BY THE
RESPONDENTS
235
RESPONDENTS 250
200
NO.OF

150
100 78
25 8 40
50 14
0
200ml 500ml 1 liter
PACKSIZE
 TABLENO.4

Dairy consumption of the milk by the respondents

Quantity of milk No. of respondents Percentage

500ml 35 12
1 Liter 160 53
2 Liters 85 28
Above 2 liters 20 7
Total 300 100

Inference:

From the above tabulation indicates that majority of 53% of the

respondents consumed 1 liter per day, remaining 28%, 12%, 7% are

consumed 500ml 2 liters, above 2 liters per day.

CHARTNO.4
 DAILY CONSUMPTION OF THE MILK
160
160

140
NO. OF RESPONDENTS

120

100 85
80
53
60
35
40 28
20
12 7
20

0
500ml 1 Liter 2 Liters Above 2
liters
QUANTITY OF MILK

TABLENO.5

Respondents preferred brand of packed milk

Brand No. of respondents Percentage

Heritage 90 30
 Aavin 84 28
Arokya 36 12
Jersy 10 3
Tirumala 5 2
Others 75 25
Total 300 100

Inference:

The above tabulation indicates that majority of 30% of the

respondents prefer heritage milk. Next majority of 28% of the respondents

prefer Aavin milk.

CHARTNO.5
 RESPONDENTS PREFER BRAND OF
MILK
90
90 84
75
NO. OF RESPONDENT

80
70
60
50
36
40 30 28
30 25
20 12 10 5
10 3 2
0
Heritage Aavin Arokya Jersy TirumalaOthers
BRAND NAMES

Chi-square test:

H0: There is no significant difference in the various brands

bought by the consumers

Hi : There is significant difference in the various brands bought

by the consumers
 Oi Ei (Oi -Ei )² (Oi -Ei )²/Ei
90 50 1600 32.00
84 50 1156 23.12
36 50 196 3.92
10 50 1600 32.00
5 50 2025 40.5
75 50 625 12.5
Total 300 144.04

χ2 = ( Oi – Ei )² / Ei ~ χ2 n-1

= 144.04 ~ χ2 6-1

= 144.04 ~ χ2 5

Degree of freedom = ( n-1) = 6-1 = 5

χ2 table value of 5% level of significance at 5 d .f is 7.82

H0: reject

Conclusion : since calculated value > table value.

TABLENO.6

Experience of the respondents

Year of experience No. of respondents Percentage

Below 6 months 64 21
6 months to 1 years 141 47
1-2 years 45 15
 More than 2 years 50 17
Total 300 100

Inference:

The above table indicates that 47% of the respondents

purchasing from the period of 6 months to 1 year, next majority of

respondents purchasing from the period of one to 6 months.

CHARTNO.6
 EXPERIENCE OF RESPONDENTS
160 141
NO. OF RESPONDENTS

140
120
100
80 64
60 47 45 50
40 21 15 17
20
0
Below 6 6 months 1-2 years More than
months to 1 years 2 years
PERIOD OF USING

TABLENO.7

Influencing factors to purchase current brand

 Influencing factors No. of respondents Percentage
Freshness (quality) 131 59
Packing 48 22
Price 22 10
Advertisement 20 9
Total 221 100

Inference:

The above tabulation indicates that a majority of 59% of the

respondents purchasing heritage milk was freshness (quality) 22%, 10% and

9% purchasing for packing, price, and advertisements.

CHARTNO.7
 FACTORS INFLUENCING TO
PURCHASE BRAND
140 131
NO. OF RESPONDENTS

120
100
80
59
60 48
40
22 22 20
20 10 9
0

t
)

ice

en
lity

in
ck

Pr

em
ua

Pa
(q

tis
r
ss

ve
e

Ad
hn

INFLUENCING FACTORS
es
Fr

TABLENO.8

Respondents Brand awareness of Heritage Milk

 Awareness No. of respondents Percentage
Aware 211 70
Unaware 89 30
Total 300 100

Inference:

The above table indicates that 70% of the respondents are

aware 30% are unaware of Heritage milk.

CHARTNO.8
 BRAND AWARENESS ABOUT THE
HERITAGE MILK

Unaware
30%

Aware
70%
 TABLENO.9

Respondents come to know of Heritage Brand

Media No. of Respondents Percentage

Hoardings 42 20
Wall posters 17 8
Friends and relatives 152 72
Total 211 100

Inference:

The above tabulation indicates that a majority of 72% of the

respondents knows of Heritage brand by friends and relatives, 20% of the

respondents know of Heritage milk by hoardings and remaining 8% of the

respondents know of Heritage by wall posters.

 CHARTNO.9

RESPONDENTS KNOWING ABOUT

THE HERITAGE MILK
152
160
140
NO. OF RESPONDENTS

120
100
72
80
60 42
40 17
20
20 8

0
Hoardings Wall posters Friends and
relatives
MEDIA
 TABLENO.10

Respondents trained of Heritage Brand

Trained No. of respondents Percentage

Yes 160 53
No 140 47
Total 300 100

Inference:

The above table indicates that majorities of 53% of the

respondents are trained Heritage milk and remaining 47% of the respondents

are not trained Heritage milk.

CHARTNO.10
RESPONDENTS TRY TO USED
HERITAGE MILK

No
47%

Yes
53%
 TABLENO.11

Reasons for Respondents prefer heritage milk

Influencing factors No. of respondents Percentage

Quality 62 45
Price 20 13
Availability 78 42
Total 160 100

Inference:

The above table indicates that a majority of 45%of the

respondents prefer by quality, 42% of the respondents prefer by availability

and remaining 13% of the respondents preferred the price.

CAHRTNO.11
 RESONS FOR PREFERING HERITAGE
MILK
90
78
80
NO. OF RESPONDENTS

70 62
60
50 45 42
40
30
20
20 13
10
0
Quality Price Availability
FACTORS

TABLENO.12

Opinion on the price of Heritage milk compares to other

 brands of milk

Opinion of price No. of respondents Percentage

High 40 25
Very high 20 13
Moderate 100 62
Low - -
Total 160 100

Inference:

The above table indicates that 62% of the respondents feel that

the heritage price of the milk is moderate.

CHARTNO.12
 OPINIONS OF THE PRICE OF
120 HERITAGE MILK
100
NO. OF RESPONDENTS

100

80
62
60
40
40
25
20
20 13
0 0
0
High Very high Moderate Low

OPINIONS
 TABLENO.13

Consumers perception on packing of Heritage milk

Packing of Heritage No. of respondents Percentage

milk
Good 77 48
Average 63 39
Bad 20 13
Total 160 100

Inference:

The above table indicates that a majority of 48% of the

respondents feels heritage milk packing is good, 39% of the respondents feel

heritage milk packing is average remaining 13% respondents feel bad.

CAHRTNO.13
 CONSUMER PERCEPTION ON
PACKING OF HERITAGE MILK
13%

48%

39%

Good Average Bad

TABLENO.14

Respondents satisfaction with Heritage milk

Satisfaction No. of respondents Percentage

Highly satisfied 55 34
Satisfied 79 49
Highly dissatisfied 16 10
 Dissatisfied 10 7
Total 160 100

Inference:

The above tabulation indicates that a majority of 49% of the

respondents was satisfied, next majority of 34% of the respondents was

highly satisfied.
CHARTNO.14
 CUSTOMERS SATISFACTION WITH
HERITAGE MILK
90
79
80

70
55
60 49

50
NO.OF RESPONDENTS

34
40

30
16
20 10 10
7
10

0
Highly satisfied Satisfied Highly Dissatisfied
dissatisfied

OPINION

Chi-square Test

Ho : There is no significant different between the consumer satisfaction

With Heritage Milk.

 .
H : There is significant different between the consumer satisfaction with

Heritage Milk.

Oi Ei ( Oi – Ei )² (Oi – Ei )² /Ei
55 40 225 5.625
79 40 1521 38.025
16 40 576 14.40
10 40 900 22.5
Total 80.55

χ2 = ( Oi – Ei )² / Ei ~ χ2 n-1

= 80.55 ~ χ2 4-1

= 80.55 ~ χ2 3

Degree of freedom = ( n-1) = 4-1 = 3

χ2 table value of 5% level of significance at 3 d .f is 7.82

H0: reject

Conclusion : since calculated value > table value.

TABLENO.15

` Respondents rank on the quality of heritage milk

Rank of quality No. of respondents Percentage

Excellent 48 30
Very good 30 19
 Good 52 33
Average 20 13
Poor 10 5
Total 160 100

Inference:

From the above table it is inferred that 33% of the respondents

feel quality was Good, 30% of the respondents feel quality was excellent,

19% of the respondents feel very good, 13% of the respondents feel average

and remaining 5% of the respondents feel quality was poor.

CHARTNO.15
 RANKING ON THE QUALITY OF
HERITAGE MILK
60
NO. OF RESPONDENTS

52
48
50

40 33
30
30
30
19 20
20 13 10
5
10

0
Excellent Very Good Average Poor
good

RANKS
 TABLENO.17

Respondents opinion on Media for sales promotion

Media No. of respondents Percentage

Television 55 18

Radio jingles 86 29

Newspapers 50 17

Hoardings 67 22

Wall posters 42 14

Total 300 100

Inference:

The above table indicates that a majority of 29% of the

respondent’s opinion was Radio Jingles as a sales promotion,22% of

respondents prefer Hoardings 18% respondents prefer T.V,17% of

respondents prefer News papers and remaining 14% are Wall posters.
CHARTNO.17
 OPINIONS ON MEDIA FOR SALES
PROMOTION
NO. OF RESPONDENTS

100 86
80 67
55 50
60
42
40 29
18 17 22
20 14

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MEDIA
 TABLENO.18

Respondents expecting sales promotion activities from

manufacturer

Sales promotion No. Of respondents Percentage

activities
Gifts 150 50
Discounts 51 17
Lucky draws 56 19
Offers 43 14
Total 300 100

Inference:

The above tabulation indicates that 50% of the respondents

expecting gifts, 19% expecting Lucky draws, 17% expecting Discounts and

remaining 14% are expecting offers from the manufacturers.

CHARTNO.18
 RESPONDENTS EXPECTATIONS
FROM MANUFACTURERS
150
160
140
RESPONDENTS

120
100
NO. OF

56
80 50 51
43
60
17 19
40 14
20
0
Gifts Discounts Lucky Offers
draws
PROMOTIONAL ACTIVITIES

TABLENO.16

Factors influenced reasons for not buying Heritage milk

Factors influenced No. of respondents Percentage

Non availability 46 29
 Unawareness 89 56
Poor quality 10 6
High Price 15 9
Total 160 100

Inference:

The above table indicates that 56% of the respondents not

buying Heritage Milk because non availability.

 CHARTNO.16

FACTORS FOR NOT BUYING

HERITAGE MILK
89
90
80
NO. OF RESPONDENTS

70
56
60
46
50
40
29
30
20 15
10 9
6
10
0
Non Unawareness
Poor qualityHigh Price
availability
FACTORS
SUGGESTIONS

1. Heritage Milk has got high awareness and preference. But still brand like

Aavin are poling on top of the mind. The company should try to position

them self as a commercial brand with quality and increasing shoppers in

uncovered areas.

2. The company should use print media and hoarding effectively for

advertising Heritage Milk.

3. Efforts should be made to improve communication between dairy

authorities and end users through regular interaction.

4. Information regarding the manufacturing facilities and the hygienic

conditions maintained by Heritage dairy should be provided to the

consumers in the form of attractive pamphlets.

5. Slides and documentary files to be shown in cinema halls before news

bulletin or intermission time.

6. Promote and sponsor athletics and sports meets in various colleges and

schools by projecting the Heritage dairy milk mascot. It has to covered

by local T.V network..

7. Sales promotions include directed man dealer calls, promotional fairs and

exhibitions, distribution of samples demonstration of products and

preparing sales literature, booklets for distribution and training the field

force to call on Clint.

8. Improve the quality, reduce the price and put more concentration on

packaging aspects and promoting other products.

9. The company should conduct meets in flats, colonies and uncovered

areas still now for promoting the brand.

10.Most of the consumers prefer 500ml milk packets. So that most

concentrations on that pack size.

 LIMITATIONS OF THE STUDY

1. The Study was restricted to Part of Avadi and Pattabiram only.

2. The Study was restricted to household Customers only.

3. Non-availability of the customers at home and the time when the survey

was conducted.

4. The Sample Size was restricted to 300 Customers.

5. The Period was restricted to four months.

 QUESTIONNAIRE FOR CONSUMERS

1. Name :

2. Age :

3. Sex :

4. What is the size of your family ?

a) 2 b) 3 c) 4 d) above 4

5. Which type of milk are you using at present ?

a) Cow’ s milk b) Buffalo’s milk c) Packed milk

6. If you are using packed milk what pack size do you prefer ?
a)200ml b) 500ml c)1 ltr

7. What is the quantity of milk consumed per day ?

a) 500ml b)1ltr c) 2 ltr d) above 2 ltr
8. What is your brand of packed milk ?
a) Heritage b) Aavin c) Arokya d) Jersey
e) Tirumala f) Others (Specify______)

9. How long have you been using your current brand ?

a)Below 6 months b) 6 months to one year
 c) 1-2 years d) More than two years

10. What factors influenced you to select the brand ?

a) Fresh ness b) Packing c) Price d) Advertisement

11. Are you aware of heritage milk ?

a)Yes b)No

12. How did you come to know of heritage milk ?

a) Hoardings b) Wall posters c) Friends and Relatives

13. Do you use Heritage milk ?

a) Yes b) No
If Yes fill in the following questions
If No go to question no 19

14. Why do you prefer Heritage milk ?

a) Quality b) Price c) Availability d) Advertisement

15. What do you think of the price ?

a) High b) Very High c) Moderate d) Low

16. How do you grade the packing of Heritage milk ?

a) Good b) Average c) Bad
17. Are you satisfied with the quality of Heritage milk ?
a) Highly- satisfied b) Satisfied
c) Dissatisfied d )Highly dissatisfied
18 Rank the quality of Heritage milk ?
a) Excellent b) Very Good c) Good
d) Average e) Poor
19.Reasons for not buying Heritage milk?
a) Non- Availability b) Unawareness
c) Poor Quality d) High price

20.Which of the following advertising media attracted you more(current

brand) ?
a) T.V b) Radio Jingles c) News papers
d) Wall posters e) Hoardings

21.What are the promotional benefits you except from the

manufacturer ?
a) Gifts b) Discounts c) Lucky draws d) Offers

22.Give your suggestions to improve Heritage milk .

a)

b)

c)
 BIBLIOGRAPHY

 Marketing Management - Philip Kotler

 Marketing Research - D . D . Sharma

 Quantitative Techniques - D .Shanthi Sopihia

Bharathi

 Statistical Methods - S . P .Guptha

 Priciples of Marketing - Philip Kotler

 Company web site

www.heritagefoodsindia.co.in