A PROJECT REPORT ON LOGISTIC TRAINING IN LOGISTIC MANAGEMENT AT VIKRAMSHILA DUGDH UTPADAK SAHKARI SANGH SAMITI (SUDHA DAIRY

)

SUBMITTED TO NDIM

IN THE PARTIAL FULFILLMENT OF ONE YEAR FULL TIME POST GRADUATE DIPLOMA IN EXPORT ± IMPORT MANAGEMENT BY ARVIND KUMAR PGDM (2009-2011)

NEW DELHI INSTITUTE OF MANAGEMENT NEW DELHI

Certificate

This is to certify that project report titled ³LOGISTIC TRAINING IN LOGISTIC MANAGEMENT´ is benefited work carried out by Mr. ARVIND KUMAR of PGDM of NDIM for fulfillment of PGDM certificate of PTU He has worked under our guidance and direction.

Dr Daniel Penkar Director:

Prof A.C.PANDA Project Guide

Date:Place: - NDIM NEW DELHI

ACKNOWLEDGMENT
To accomplish a project work like this , effort of many people are required to be directed towards the same objective and goal and our project is not an exception. First of all ,i would like to thank Mr.P.K.Verma (CEO of Bhagalpur Dairy) for his inspiration, guidance and help. I express our sincere thanks to Mr.D.K.Singh (Sales Manager) for his guidance during the course of our training. I would to like to thank Mr.Vimal Kumar (Assistant Marketing Manager), Yogandra Singh (Lab Assistant), Dr. Ashok Kumar Sah and Mr. Srivastava (Assistant Procurement) of Bhagalpur Dairy, other dairy staffs, and various Sudha Milk parlor retailers and consumer from whom we received valuables co-operation, useful suggestion and relevant date and information pertaining to our project and response to questionnaire. I am thankful to Prof.A.C.PANDA who have been a source of motivation to us. At last but not least, i convey my heartily gratitude to our Director (DR.Daniel Penkar)for their constant guidance and help. Finally, I thank to God almighty who blessed me in my endeavor. Project Associates

SI No. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

CONTENTS INTRODUCTION OBJECTIVE COMPANY PROFILE INTRODUCTION OF MILK PROCESS OF MAKING MILK PRODUCT LOGISTIC PART OF SUDHA DAIRY ORGANIZATONAL DAIGNOSIS OF COMFED QAULITY AND FOOD SAFETY POLICY MAJOR PLAYERS S.W.O .T ANALYSIS RECOMMENDATON RETAILOR AND CONSUMER EXPECTATON ANALYSIS OF MARKET SURVEY LIMITATON SCOPE AND FUTURE CONCLUSION/ SUGESSION BIBLIOGRAPHY

PAGE NO. 1-2 3 4 5-7 8-14 15-22 23-25 26-28 29 30-33 34 35-36 37-41 42 43 44 45

INTRODUCTION BHAGALPUR
Bhagalpur city in India, at Bihar State. The city is situated on the Ganga¶s river, 120 miles south east of Patna. Bhagalpur is a road and railroad junction and the training center for a fertile area. The city has rice and sugar mills, and silk, wool weaving factories. The climate of Bhagalpur provides a great scope for milk and related industries. A Silk Culture Institute and Agriculture Research Station are located here. After the construction of Vikramshila Bridge, it becomes the center for business and trades .Bhagalpur is also noted for its silk production. A sericulture Institute and a Agriculture-Research station have been established, and the city is the seat of Bhagalpur University (1960).Formally called sujaganj, Bhagalpur was constituted a Municipality in 1864. Headquarters: Bhagalpur Area: 250 square km. Population: Totel:190996 Rural:1566518 Urban:343339 Sub Division: Bhagalpur, Kahalgaon, Naugachhia Blocks: Bhagalpur, Kahalgaon, Sanhaula, Nathnagar, Jagdishpur, sultan Bihpur, Gopalpur, Kharik, Narayanpur, Ismilpur, Ranhra Agriculture Industries: Rivers: Paddy, Maize, Lentils. Tussar silk ,NTPC Thermal Power at Kahalgaon,Sudha Dairy at Mayaganj Ganga

In BHAGALPUR DAIRY COVERS:In East In west In south In North Some area of West Bengal Jamalpur Dumka Purnea

Bhagalpur dairy has a very strong network of milk procurement system. Sudha Dairy has a Dairy Collection Society (Bhagalpur).

Sudha Dairy has the producer capacity of 80,000 ltrs at present. It is producing about 15,000 ltrs per day. Rest of its capacity, its being consumed other plants on demand. Sudha is trying to increase the demand of their products. It has a broad product portfolio. It produced line of milk is good. It provides sudha light milk

Objective
This is being a part of manufacturing sector the most important thing in this sector the most important thing in this sector is the production of milk production of which is being processed . In this regard the logistic of any organisation plays the most important role. The objective of any project is to understand in the detail logistic procedure and production management of sudha. There fore the main objective of the study is to know how working takes place in the inward and outward section of the company i.e. in the logistic department.

COMPANY PROFILE
Vikramshila dugdha utpadah sangh Pvt Ltd. Is a part of sudha diary. Who is under flood operation. The group turnover is over 50 crore pre. annum. This unit started in year with the capacity of 20 thousand Lt. milk per day. Presently it has increased up to consumption of 50 thousand Lt. milk per day. This diary is not selling only milk but also milk product like paneer, curd, lassi, ghee, peda, sweets, butter etc. It is in around 20 acres of land in the middle of the town. The plant is well equipped with latest machinery, Pasteuralisation machine, Homogenizes machine and RCM Tank. There 240 employee (40 staff & 200 workers) are involved in this plant.

INTRODUCTION OF MILK
Milk may be defined as the whole ±freeze clean lacteal serration obtained by the completed of one or more healthy milky animals, excluding that obtained within 15. Days before or 5 days after cabling or such period as may be necessary to render the milk practically cholesterol free containing the prescribed percentage of milk fat and solid not fat.

Vitamin-A Calcium Carbohydrates Magnesium Phosphorus Potassium Protein

Vision and Skin Strong bones Energy Mussels building Energy Nerve control Muscular growth

Zinc

Immune system

PROCUREMENT
2006-07 Kg. Ton APRIL 700.68 MAY 700.20 JUNE 800.02 JULY 700.40 AUGUST 700.00 SEPTEMBER 800.06 OCTOBER 700.50 NOVEMBER 700.67 DECEMBER 700.35 JANUARY 800.20 FEBRUARY 800.15 MARCH 700.43 TOTAL AVERAGE 9100.66 700.63 MONTH 2007-08 Kg. Ton 600.90 700.92 800.70 700.90 700.75 600.58 700.37 800.37 600.59 800.01 700.20 700.03 9000.59 700.54 2008-09 Kg.Ton 600.45 800.00 700.55 600.70 600.76 500.87 600.98 800.10 800.64 700.76 700.54 700.55 8700.90 700.325

This is the total milk procurement of Bhagalpur Dairy till March 2009.

SALE OF MILK
2006-07 Kg. Ton APRIL 600.83 MAY 600.44 JUNE 700.01 JULY 600.90 AUGUST 600.61 SEPTEMBER 500.85 OCTOBER 600.54 NOVEMBER 600.34 DECEMBER 600.27 JANUARY 700.92 FEBRUARY 700.55 MARCH 600.38 TOTAL AVERAGE 8000.74 666.72 MONTH 2007-08 Kg. Ton 600.53 700.17 800.04 700.12 600.71 600.28 700.06 700.59 600.51 700.84 600.65 600.28 8300.78 691.73 2008-09 Kg. Ton 500.77 700.46 700.25 500.76 500.65 500.37 700.06 700.87 700.99 600.78 600.34 600.64 7900.64 658.38

This is the total sale of milk till March2009

PROCESS OF MILK PRODUCTION
First stage:Reception:- Reception of procurement of raw milk from district places through the van. Sampling:-Other reception the quality controls taking the sample of each milk for testing sampling desreresahe milk grading A.B.C. Chilling:-Chilling is started after the sampling that is only cold treatment. Pasteurization:-Pasteurization is processes through which milk are treated at the temperature of 85 and suddenly in that is see cooling that make the milk pathgerm free. Classification:-This is the process in which the milk is certified. Homogenization:-This is the processing in which powder milk makes liquid milk.

COMPOSITION OF MILK

WATER SOLID

TOTAL

FATS

SNF

TRUE FATS

ASSLCLATED SUBSTANT

PHOSPHOLIPID

CHOLESTROL

CAROTENE

VITAMINE

LACTOSE NITROGENOUS CONSTITUENT

MINERAL

OTHER

NON PROTENE

LACTUL BUTIN

PROTENE

PIGMENT BACTERIA

DISSOLVE GASES ENLYRNES

VIT.B COMPLEX

FLOW CHART PROCESS FLOW CHART FOR POUCH MILK PACKING :MILK RECEPTION IN CANS & TANKS

INSPECTION & TESTING

WEIGHMENT

UNLOADING THROUGH ONLINE STRAINERS
RECONSITUATION OF MILK FROM MILK POWDER, WHITE BUTTER, BUTTER OIL

CHILLING

RAW MILK STORAGE TANK

BALANCE TANK OF PASTEURAZER

CLARIFICATION

PASTEURIZATION

AI

A1

PASTURISED MILK STORAGE SAMPLING & TESTING CHILLING

MILK STORAGE TANK

POUCH MACHINE BALANCE

POUCH FILLING

POLYFILM

CRATES

CREATING

SAMPLING &TESTING

COLD STORAGE

DISPATCH

SAMPLING & TESTING

PROCESS FLOW CHART FOR PANEER

STANDRISED MILK VAT

HEATING UP TO 85 C & COOLING TO

HEATING OF CRITIC ACID SOLUTION WATER

ADD COAGULANT @.OO2%

DRAINNG WHEY

COLLECT SOLID &TRANSFER TO HOOPS

PROCESSING FOR 45 MINUTES UNDER 20KG Wt

IMMERSING IN CHILLED WATER & COOLED FOR 30

CUTTING IN SLAB AS THEN IN SMALL SQUARE PICESES

PACKING

CREATING & TRANSFER TO STORE

PROCESS FLOW CHART FOR PEDA

STANDARDISED MILK >13 C

CONDENSATION BY BOILING

PREPARATION OF KHOA BY CONTINUOUES STIRING

DEOICATION OF KHOA IN PAN

COLLECTING KHOA IN TRAY SUGAR MIXING SUGAR WITH KHOA

MIXING PEDA MASS

SAHPING PEDA MANUALLY

DRYING PEDA AT SMBIENT TEMP.

PACKING IN 250 Gm

STORAGE AT SMBIENT TEMP TO PACKAGE IN 250 gm

DESPATCH

PROCESS LOW CHART OR LASSI
RAW MATERIAL

STANDARIZATION OF MILK (4.6% FAT & 8.75 SNF)

HEATING MILK AT 80 C

COOL TO 37 + 2 C

PREPARATION OF CULTURE 0.6 ACIDITY

INOCULATE WITH CONTINIOUS STIRRING KEEP FOR 4 ± 6 HRS

TRANSFER TO COLD STORAGE & KEEP FOR 10 ± 12 HRS

TAKEN OUT & BROKEN BY STIRRING

ADD 23% MILK

ADD SUGAR 30% BY CONTINUOUS STIRRING

SUGAR & FLAVOUR

STANDARDIZATION OF LASSI BY ADDING PASTEURIZED WATER TO MAINTAIN (8-8.5% MILK SOLID)

PACKING IN 200 ML POUCHES

POLYFILM

LOGISTIC MANAGEMENT

LOGISTIC PART OF SUDHA DAIRY
LOGISTICS MANAGEMENT WHEN CONSIDERED IN THE CONTEXT OF INDUSTRIAL ACTIVITY, REFLECT SIMILAR KIND OF APPROACH TO IMPROVE FLOW OF PRODUCT FROM SOURCE OF ORIGIN THROUGH DIFFERENT STAGES AND FINALLY TO CUSTOMER. LOGISTICS MANAGEMENT HAS ALSO BEEN KNOWN BY VARIOUS OTHER NAMES SUCH AS TOTAL PHYSICAL DISTRIBUTION, COMPLETE FLOW MANAGEMENT, AND SUPPLY MANAGEMENT.  LOGISTICS MANAGEMENT ENCOMPASSES ALL MATERIALS FLOWS MANAGEMENT, FROM THE FLOW OF PURCHASED MATERIALS INTO WORKS MATERIALS PLANNING OF RAW MATERIALS, COMPONENTS AND OTHER PRODUCTS, TRANSPORT OF MATERIALS FROM SUPPLIERS TO WORKS RECEIVING AND INSPECTION STORAGE OF MATERIALS. MATERIAL FLOW THROUGH MANUFACTURING PROCESSES I, E, MATERIAL ISSUES AND MATERIAL HANDLING.
MATERIAL FLOW TO CUSTOMERS I,E, PHYSICAL DISTRIBUTION

In Sudha dairy the Logistic part plays an important role in running this dairy plant.
1 LOGISTICS MANAGEMENT IS THE FUNCTION OF MANAGING THE TOTAL FLOW OF MATERIALS WHICH INCLUDES MOVEMENT OF RAW MATERIALS FROM SUPPLIERS, IN PROCESS WITHIN THE FIRM, AND MOVEMENT OF FINISHED GOODS TO THE CUSTOMER.

LOGISTICS FUNCTION CONSISTS OF FOLLOWING SETS OF ACTIVITIES: 1.ORDER PROCESSING. THOUGH THIS ACTIVITY DOES NOT CONTRIBUTE MUCH TO TOTAL COSTS, YET IT IS TREATED IMPORTANT BECAUSE OF ITS CONTRIBUTION TO LEAD TIME. 2. TRANSPORTATION MANAGEMENT. IT INVOLVES ± ‡ FIRM¶S OWN TRANSPORT ( IF GOODS COLLECTED) ARE TO BE

‡ HIRING OF THE TRANSPORT ( IF THE SERVICES OF EXTERNAL FIRM ARE TO BE USED) ‡ ROUTING AND LOAD PLANNING. ‡ SELECTION OF MOST SUITABLE MODE OF TRANSPORT I.E. ROAD .

3. INVENTORY MANAGEMENT INVENTORIES REQUIRE TO BE MAINTAINED TO TAKE CARE OF NEEDS BETWEEN THE TIME OF DEMAND AND TIME OF SUPPLY. INVENTORY MANAGEMENT INVOLVES DECISIONS CONCERNING ‡ BUFFER STOCKS ‡ LEAD TIME ‡ REPLENISHMENT OF STOCKS WAREHOUSING THIS IS CONCERNED WITH MANAGEMENT OF SPACE TO HOLD INVENTORIES AND INVOLVES SUCH PROBLEMS AS : ‡ SITE SELECTION ‡ SPACE DETERMINATION ‡ LAYOUT AND DESIGN ‡ RECEIPTS AND ISSUES AND STORAGE. ‡ PRESERVATION

5. MATERIAL HANDLING THIS IS CONCERNED WITH MOVEMENT OF PRODUCT AT THE STOCKING POINT AND IT INVOLVES SUCH DECISIONS AS : ‡ SMOOTHENING OF MATERIALS FLOW. ‡ SELECTION OF MATERIALS HANDLING EQUIPMENT. ‡ MAINTENANCE OF MATERIALS HANDLING EQUIPMENT

6. PACKAGING THIS IS CONCERNED WITH DESIGN OF PACKAGING OF THE PRODUCT THAT ENSURES DAMAGE FREE MOVEMENT OF THE PRODUCT AND IS CODUCIVE TO EFFICIENT HANDLING AND STORAGE.

MILK:YEAR 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 SALES 3487.33 3668.18 3698.88 3759.57 5109.06 6648.52 6972.11

2001-02 2002-03 2003-04 2004-05 8000 7000 6000

5957.37 3842.34 7011.23 5593.26

1994-95 1995-96 1996-97

5000 4000 3000 2000 1000

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03

0 SALES

2003-04

PEDA:
YEAR 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 SALES 771.7 200.3 1059.8 5140.25 7404.2 6619.75 5278 5420.21 3645.56 4187.21 5423.21

8000 7000 6000 1996-97 5000 4000 3000 2000 1000 0 SALES 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 1994-95 1995-96

LASSI:
YEAR 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05
8000 7000 6000 5000 4000 3000 2000 1000 0 SALE 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

SALE 1059.8 5140.25 7404.2 6619.75 5278 5420.21 3645.56 4187.21 5423.21

PANNER:
YEAR 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05
18000 16000 14000 12000 10000 8000 6000 4000 2000 0 SALES

SALES 135.5 1634 2774.5 6996.8 11006.9 14474.4 12964.9 14706.5 13795.2 15654.5 14325.6

1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

BUTTER
YEAR 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 SALES 147 2934.1 2286.2 2193.8 2763.3 3745.9 4267.5 3522.8 3000.5 3452.5 3845.6

4500 4000 3500 3000 2500 2000 1500 2000-01 1000 500 0 SALES 2001-02 2002-03 2003-04 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00

GHEE:
YEAR 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 SALES 7123.5 6478 11009 11879 12452.5 13277.2 1644.6 12915.5 11987.2 12456.2 13854.3

16000 14000 12000 1996-97 10000 8000 6000 4000 2000 2002-03 0 SALES 2003-04 1997-98 1998-99 1999-00 2000-01 2001-02 1994-95 1995-96

DISTRIBUTION Because of its perishable nature of products channel is short ,the diary believes in selective distribution .the distribution network can be easily visualized as follows-

sudha

retailers

consumers

Sudha distribution chain typically consists of the director or one level channel . It has its own outlets , which is provided by the District Development Board in the important places ,Sudha had acquired those outlets and distributed to the retailers .Again the areas where the outlet of sudha is not present , it distributes it milk for sale is through minibuses and jeeps, which make the product available to them on the pre-specified time a der from the retailers for the next delivery. nd takes the or

PANNER:
YEAR 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05
18000 16000 14000 12000 10000 8000 6000 4000 2000 0 SALES

SALES 135.5 1634 2774.5 6996.8 11006.9 14474.4 12964.9 14706.5 13795.2 15654.5 14325.6

1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

RETAIL OUTLET:- They not only provide efficient sales channel but also safe storage .Sales for the unit takes place the retailers take possession of the goods .The unit does not provide amy replacement policy so this increases cash circulation and also make calculation overall sales easy. The outlet must be equipped with the freezing facility. CONVENIENCE STORE:- If the retail outlet is not available within the one-kilometer range then the distribution is performed by the convenience store. The retailing authority is given to those stores ,which must have the freezing facility. CONSUMER AWARENESS AND PENETRATION The low income of the people of the Bhagalpur results in lows average consumption of the milk products. The penetration of milk and milk products are low in Bhagalpur comparison to the other cities. There are many rural areas around Bhagalpur ,which are product of milk, and they have chosen Bhagalpur as a market for them and they are selling their milk in the Bhagalpur¶s household for many years. As the prices of the milk provide by these village merchants are low , people ,with lower income prefer to take the milk from them, without considering the quality of the milk. The local small dairies owned by many private persons are one of the major sources for the milk in the city. Person who has the willingness to take fresh milk prefers those diaries for their satisfaction , although they have to pay a premium for that . The diary owners are some time involve in malpractices like the use of aflatoxin for milk which are very much injurious for the health of the persons as well as

provide the milk less then the measured quality. But people consume this milk with the perception of sudha dados which is not pure in any respect. Brand awareness of sudha is good in the Bhagalpur city however the percentage of regular user is very low. People prefer to buy sudha when they have scarcity of milk. Our survey shows that consumers have perception that sudha is chemically treated. They are not aware that the milk contains vitamin ³A´ which is good for our health .A few of the consumers are aware of the pasteurization process .A fact-finding exercise regarding the consumer¶s perception of the various milk and product was carried out.This exercise focused primarily:In establishing among various factors , those influence the consumers baying decision the most .The factors under consideration where :FRESHNESS FLAVOR FAT CONTENT FAVORABLE PRICE ACCESSIBILITY PACK-SIZE ADVERTISEMENT To the above purpose a questionnaire was made use of which was administrated to 100 consumers .These consumers where drawn from different households comprising basically family¶s different age groups . The motive was to collect data from all possible consumers. This is so because consumers differ in their tests and preferences.

ORGANIZATIONAL DIAGNOSIS OFCOMFED
This study was conducted during 1999-20 in the dairy plant functioning under Bihar State Cooperative Milk producer Federation (Comfit). A comprehensive diagnosis was conducted to ascertain organization climate, organizational size, HRD prospects, and awareness about HACCP concepts and extension activities in different dairies of COMFED in Bihar. The analysis data indicated that both BD and BMU have better climate than TIMUL. There are percentage gap in existing and desired climate in reward system, organizational clarity warmth & support and leadership style for which respondent perceived a need for change. The ratio of managerial to supervisory staff was maximum at BMU and is the largest dairy as compared to other. There was medium of HRD prospect in all studied dairies as perceived by the respondent. Respondent of all three dairy plant were well aware with HACCP concept and are waiting for its implementation. COMFED is helping dairy farmer through its well planned extension activities in the area of dairy of daring by supplying them required input readymade market for milk and technical know how, through training and demonstration. Thus this study highlighted several growth and survival of the same in the prevailing competitive situation.

HIERARCHY OF COMFED
BOARD OF DIRECTOR

MANAGING DIRECTOR (IAS)

GENERAL MANAGER

C.M
PROCUREMENT & IMPORT

C.M PERSONNEL

C.M ADMINISTRATI ON

C.M OPERATION

C.M MARKETING

Board of Director ± Animal Husbandry Commissioner is the chairman of board. Managing director ± Managing Director would be an Indian Administrative officer, who is appointed on the approval of national Dairy Development board. General Manager ± At present the post of general manager is vacant. Chief Manager Of Procurement &Import ± He is responsible for procuring and importing the milk ,which are further used in various unit of COMFED. Chief Manager of Personnel ± He is resposible for reciting and selecting the people under COMFED norms. Chief Manager of Administration ± He is responsible for all the administration activities of diary.

Chief Manager of Marketing ± He is responsible for all the activities of production and processing of the milk and decides about the other product of product line. Chief Manager of Operation ±The chief of the marketing manager decides all the marketing and advertising activities. A grade: - Good B grade: - smoky/sour C grade: - curding /adulteration ³A´ grade has 6% fat and 9% SNF If milk have more than 8.5% SNF then there would be 100% payment and if milk have 8.4% SNF then there would be 75% payment , in other circumstances no payment would be made. Under the head of quality control section there are various complex and scientific processes performed such as : Quality checking Pasteurization Quality checking in terms of acidity, acidity.

Account ± This department plays vital role for all financial activates performed by the unit. This department is for purchasing of raw material, calculating the salaries of employees, and paying bill to the society. PRICING

The main objective of pricing in present marketing scenario should be to meet the customer demand in a competitive situation in such a way that sale and profit are maximized. Price has operated as the major determinant of buyer choice. Price shall remain one of the most important element deterring a monopoly market save and profitability Consumer and purchasing agent have more offers to price information and price discount. Consumer forcing retailers to lower their price. The result is a market place characterized. After analyzing the production, marketing transporting and various costs. They fix the selling price of Sudha products. In some Sudha product they apply a flexible pricing approach in fixing the price of product. They provide some authentic way regarding the selling price of some product. Sudha Dairy used to carry some Sudha products like Mistidhai ,Kalakand, Gulabjamun and milk product from carrying plant . and therefore result of this they add some transport action expenses. So they are eligible to charge marginally more price them the price charged mother places. In our survey more than 70% of the customer were not satisfied with current price of them level of sudha . But 30% of that customer did not wanted to understand the problem especially in Bhagalpur division. so to come up with this sort of problem we can do . since dairy business is a long run business and the market of milk and its product will rise commonly. So there will be no shortage of customer, and very soon a time will come in which people will more conscious about his and his family health. So the possibility of local hoot & business will not

existence in future. There will be no hurdle in the path of Sudha . Conscious about his and his family health. So the possibility of local hotel & business will not exist in future.

QUALITY AND FOOD SAFETY POLICY
The Bhagalpur is committed to continually and proactively seeking to live up to the exception and need of its esteemed milk producer and customers and delight them with quality product and services .It shall strive to delight its customers by making available high quality and safe food with innovative features. It¶s endeavor shall be to bring its qualitative change in the socio-economic status of it¶s member producers by ensuring remunerative price for their produce and offering quality products at competitive price to consumer through professional excellence. ®The Bhagalpur diary shall achieve this novel goal through . ®Selecting appropriate cost effective and Eco-friendly processes and technology. ®Providing vibrant work environment that result in excellence . ®Empowering its employers to excel in every sphere through continual improving in skills ,processes system. ®Applying HACCP (Hazard Analysis and critical control point) principle in quality management system that result production in safe food.

QUALITY AND FOOD SAFETY OBJECTIVES
®To provide dairy products of highest quality with build in food safety to meet a well-defined need ,use and purpose of customers. ®To comply with statutory and regulating requirements. ®Ambitions and efficient utilization of resources .10% reduction in use of water and energy in this year. ®Promote innovations and development of new products/processors. ®Monitoring and enhancing process capabilities by adapting statistical quality controls total quality management and total productive maintenance and similar quality management tools. ®Applications and adherence of HACCP principle for food safety. ®To achieve continual improvement to customer satisfaction in term of product quality availability and services . ®TO improve competence skill of each employee by identifying the current and future requirement and bridging the gap by providing training and multi skilling. ®To reduce expenses by 2% per liter of milk every year . ®To develop a team of motivated , dedicated and developed work force that encourages professional excellence.

PHILOSPHY We believe that *Co-operation is the preferred form of the enterprise ,giving people control over the resources they create through democratic self-governance. *Self reliance is attained when people work together ,have a financial stake ,and both enjoy the autonomy and accept the accountability for building and managing there own institution. * Progressive evolution of the society is possible only when those whom it seeks to benefit direct development. *All beneficiaries ,particularly women and the less privileged must be involved in cooperative management and decision making. *Technological innovation and the constant search for better ways to retain our leading position in a dynamic market. *While our method change to reflect our changing conditions ,our purpose and values must remain constant.

MAJOR PLAYERS The milk market is dominated by a large number of small local milk farmers known as khatal milk.There more 200 local unorganized khatals in Bhagalpur town.Now a days a new name join in competition with sudha ,is Amrit (this is a brand of ganga diary pvt ltd.).It is an organized segment ,which produce many other product lines with milk. Amrit sell through their exclusive layout. Daily sales of Amrit milk are about 800hrs .Amrit plant is situated at Begusarai and sends their milk through autos. Amrit only concentrate in markets of Bhagalpur urban area . The other products are supplied on special order. Margin provided by Ganga diary is more than sudha .Distribution and retailing authorities are provided to those people who have personal contract with diary. They follow the liberal policy while giving distribution and relating authority. It act as a substitute of sudha.

STRENGTH ,WEAKNESS ,OPPURTUNITY ,THREAT
³S.W.O.T. ANALYSIS OF SUDHA DIARY´ STRENGTH *Biggest souring base for milk &milk product in Bhagalpur. *Bhagalpur bests-known local brand across all categories. *More than 80% share of packaged milk in Bhagalpur. *Presence of a well-established distribution and delivery network for product. *penetration price strategy- Sudha is the price warrior in the milk and milk products market and currently have a very wide range to offer for all price points. *Milk is available even in the day of crisis , in summers there is always the scarcity of milk but the mil is available in the sudha counters. *The strong relationship between the supplier milkmen & sudha diary, which is one of the strong strength inherited by sudha from operation Flood using the 3- tire system. * Well ±established procurement process by providing the best possible value of their milk to the milkmen and strong transportation facilities. *Products are standard as per ISO norms, Sudha puts much emphasis on the quality control to match the norms. *A good QWL(Quality of work life).

WEAKNESS *Marketing is not consumer ±oriented, they don¶t take prior interest in the consumer tastes and preferences .They sale what they can make rather what consumers want. *Advertising is low profile ,as the result of our survey shows. The slogan ³NAYE SWAD NAYE UTPAAD´ doesn¶t tell any more about the quality aspect of the products. *Sudha is unable to make emotional bonding with the consumers. Their emotional apple ,which makes this bonding ,yet sudha doesn¶t identify and correlate all these thing. *Sudha is unable to make consuming Sudha milk regularly among the consumer, most of the people take sudha occasionally. *Still there is perception about sudha among the consumers that it is treated by chemical to store it for long time, which is base less.Sudha doesn¶t take any step to change this occasionally. *Sales personnel are not well trained. *Unawareness about the pasteurization process among the consumer.(Our survey shows ,only 2 people out of 100 know abjectly the meaning of pasteurization process.) *As per our survey, retailers list a credible replacement policy as a factor very high on their wish list.Sudha has no replacement policy. *There are very few retailers ,which have the freezers that they try to avoid keeping many items of the sudha .On the hand retailers demand freezer without having to pay any deposit because of their financial problem.

*Packaging is not up to mark for many products like cheese , peda etc.

OPPORTUNITY *Sudha should approach the rural and sub-urban areas in the large scale where the potential of the milk is low. This provides the opportunity for Sudha to increase its market. *There is ample scope in low price segment as also in other category where consumers are presently dissatisfied with the quality provide vis-a ±vis the price being charged. *Sudha has opportunity to capture the bulk market like restaurants, hostels, government organized function, religious, marriage ceremony etc. *With a dramatic change in the Life style as well as Social System ,there is an ample opportunity for sudha to provide Home Delivery System on monthly basis. *Sudha should introduce pushcarts to approach those consumers who don¶t want to go to layouts for purchasing its products .It will increase the sales by penetrating large scale of different segment especially to children who become excited to see the pushcarts. *There is an opportunity In women segment , the main decider for purchasing milk and products. *Sudha should include the ice cream in their product line.

THREATS *Sudha faces threats the local merchants, local dairy farms popularly known as khatal. *Amrit has emerged as a strong revival in Bhagalpur. *The price clash between supplier and co-operative may lead to dreaded result. *Since it is not doing much for improving the quality of procurement of milk it can be the biggest threat. *Sudha is not working well to develop loyal relationship with consumer. *We have identified Banquet Halls as a segment of the market ,which sudha can exploit as the supply,is unorganized as yet and the owners are only concerned with profit margin, as the brand does not matters of now, local manufacturer supply to these banquet halls. *In certain product Amul , Haldiram etc invaded market share of Sudha *Sudha is dependent on many items such as butter ,gulabjamun, kalakand , rosgulla etc on other diaries, it directly affect the sale of these items. *Sudha is always threatened by over and under procurement of milk because there is no any agreement between the diaries for sharing the milk required by each other. During winter there is a glut of milk among suppliers as a result the diary has to transform the milk in to powder . In this process the consumer has to bear the blunt. They get powdered based milk and this creates dissatisfaction among the consumers, so it becomes a matter of concern both for suppliers as well as the diary..

MILK PRODUCTION IN INDIA YEAR PRODUCTION (MILLION TONNES)

1991-92 55.6 1992-93 58.0 1993-94 00.6 1994-95 63.8 1995-96 06.2 1996-97 69.1 1997-98 71.9 1998-99 75.2 1999-00 78.1 2000-01 80.8 * Provisional 1. Data on milk production from 1991 to 1994 is available from Dept. of AF & D, Ministry of Agriculture, Govt. Of India 2. Data on milk Production from 1995 to 2000 is available from Agenda notes for the meeting of The Technical Committee of Direction for improvement of AH&D Statistics dated 10-20th February, 2002 at New Delhi

PER CAPLTA AVALLIBILTY (gm/day) 180 184 189 195 198 203 207 213 217 220

PER CAPLTA MONTHLY CONUSMPTION EXPENDITURE ON MILK & MILK PRODUCTS (1992) (IN RS) NSS Milk and Meat, Total Total Total Average Round Milk Egg, Fish Food Non Exp. Size of Products Food Household 16th (1990-1991) Rural 19.04 7.06 133.4 68.78 202.1 4.51 Urban 32.37 12.27 185.7 140.9 326.7 4.55 47th (July-Dec.1991) Rural 21.9 8.2 153.5 89.91 243.5 5 Urban 37.21 13.49 207.7 162.5 370.3 4.73 18th (Jan-Dec.1992) Rural 23 8 161 87 247 52 Urban 42 14 224 175 399 4.8 49th (Jan. June 1993) Rural 23 9 159 85 244 5.1 Uran 41 14 221 162 382 4.6 14th (July 1993-June 1994) Rural 27 9.4 178 104 281 4.9 Urban 45 15.5 250 208 458 4.5 Source: Basic Animal Husbandry Statistics, 1999, GEO.

RECOMMENDATION

1:-management should adopt the strategy of 4 p¶s of marketing that is new product, pricing policy, promotion and placing through wide distribution network. As well as now latest strategy of 4 c¶s. 2:-it should also engage a for providing constancy for development of marketing organization, strategic marketing. 3:- A plan should be prepared for marketing of milk product on both short and long term self life basis so that it may be decided that which product would be exclusively manufactured by each union to achieved economy of scale. As similarly as, logistic of present product marketing sale should be revved. 4:-It should be also decided that assessment of district wise milk i.e. Production. Marketable surplus, current procurement by co-operative, marketing potential and current marketing of milk should be prepared and presented in next board meeting so that any gap between market potential may be filled by taking milk from another unions.

RETAILARS EXPECTATION The main points that have emerged from the survey are : Around 90% of the retail markets are ready for Sudha¶s other products as they have faith in the Sudha brand. They have faith that the other product would also sell as the Sudha Milk. The retailer except the following from Sudha:PROFIT MARGIN EQUIVALENT TO AMRIT:Almost all the retailers are dissatisfied with the current profit margin on offer. Their main point of contention is that the electricity charges are High and there are insufficient to cover these costs. So the margin should like Amrit, which provide more commission rather Sudha. DEEP FREEZER:To keep the milk and other product of the Sudha, the retailer needed freezer because of the perishable nature of the product. As the products are get spoiled and the retailers have to bear the loss totally. Due to they become frustrate because they have to compensate the loss from their own pocket. The financial condition of the retailers are not very good have their own freezer and so retailers want to get the freezer without paying any despite from the Sudha.

ADVERTISING:This is another factor that affects the retailers a lot. The retailers have clearly stated that they would first see the demand for the product in the market coupled with the advertising support from the company and only then would they be interested in stocking Sudha product. The advertising campaign of Sudha is not too aggressive that they hold the market broadly. REPLACEMENT POLICY:Sudha is already blamed with the poor replacement policy. It has to give a certain kind of replacement policy to make its product more acceptable to the retailers. QUALITY TEST AND DEMAND:Retailers and distributors said that they would only keep the product when the customer demands it. These people and many other retailers said the quality of the product should be good.

PROPER DISTRIBUTION:Sudha must have a very sound distribution system. It should distributed its product properly on time and extra distribution facility when the demand is high. To motivate the retailers, they should provide Monetary benefits as well as non-monetary schemes in turn they take care of proper distribution and achieving sales target.

SCHEMES:In festival seasons and the time of Lagan , there is peak time for the milk and milk product markets Sudha should come with some schemes, which encourage the retailers to stocks more. It can use schemes like price cuts, coupons etc.

ANALYSIS OF MARKET SURVEY We find that 80% of the Consumers in the total market are aware of brand ³Sudha´. 60% have tried it and only 20% who have tried it are satisfied. This indicates that the Communication program is effective in creating awareness but the product fails to meet Consumer expectations. OBSERVATIONS FROM MARKET SURVEY There is a misconception about ³Sudha´ milk among consumers that it is treated by chemical preservation , which is baseless. Dairy has not taken step to Consumer perception. Unawareness about the pasteurization process among the Consumers. Only 5% people which have been promote surveyed able to answer the question. ³ Do you know about pasteurization process and its benefits?´ Bhagalpur Dairy advertising Profile is very low . No advertising Campaign is running to promote the sell and to change the attitude of Consumer about Sudha. Brand awareness of Sudha is good in Bhagalpur City however the % of regular user is very low. People prefer to buy Sudha when they have Scarcity of milk i.e. they are not brand loyal. Sudha faces intense Competition from local milk venders popularly knows as Khatal: near about 200 Khatals are operating in Bhagalpur only.

Consumers prefer home delivery of milk in morning and evening. SURVEY PRODUCT LIFE CYCLE STAGE :SALES PROMOTION PERSONAL SELLING

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STAGES OF BUYER READINESS In the intro stage advertising and publicity have the highest cost effectiveness followed by the personal selling to gain distribution coverage and sale promotion to induce trial. And the growth , all the tool can be down because demand has its own momentum through word of mouth. In the maturity stage , sale promotion , advertising and personal selling and growth , more important in that order. In the decline stage sale promotion continues strong advertisement publicity are reduced and sales people give product.

THE TOOL TO COLLECTS DATA The tool used for this research is questionnaire ,for consumers, Administered and filled by interviewer .The questionnaire was typed And presented to respondent in an arranged manner .In this process Came handy in explaining the respondents the exact list of the Questionnaire or if they faced any problem while answering the Question or in clarifying any confusions they had . Personal Interviews provided flexibility in the sense that researcher was able

To provide further clarifications or explanation whenever required. Following facts were kept in mind while preparing the questionnaire. The questionnaire is in easy language. Maximum questions are of multiple ±choice questions. The comments and suggestions were open-ended question so that the respondent could elaborate upon his or her thought. The size of the questionnaire is not too long .This is to make the job feasible both the respondent and researcher. The sample : The sample consists of respondent of every age group who use milk and related products. The sample size for this study is 100respondents. To cover the respondent from all type of occupation, we conducted the survey at house and retailers¶ outlets in different locality. This practice have given each class proper representation in this sample.

SUMMARY OF EVALUATION OF WORK SHEET FOR CUSTOMER SATISFACTION ASSESSMENT Q.no SCORES 1 2 3 4 1 18 11 29 56 2 0 31 -83 3 5 22 70 17 4 6 37 49 22 5 3 25 68 18 6 0 38 53 23 7 24 42 26 22 8 29 64 0 21 9 8 28 0 78 TOTAL 94 300 298 344 Scores of 1 & 2 dissatisfaction 9.16 Total 29.24 38.40 Scores of 3 & 4 Satisfaction 29.04 Total 33.52 62.56 Sl.No Questions 1 How far is Sudha Retail Counter from your Residence? 2 Does Sudha Milk & Milk Products always available inSudha Retail Counter? 3 How is the Maintenance of Sudha milk & milk product in sudha retail counter 4 How is the behavior of retailer towards you 5 What is your opinion about the quality of sudha milk? 6 Are you satisfied with the packaging of sudha milk & milk made product 7 Do you see the advertisement of Sudha in your town? 8 If you have any complaints against the quality of sudha product, is it get solved? 9 Does sudha have contacted you by any means about the necessary information of sudha products?

TOTAL 114 114 114 114 114 114 114 114 114 1026

Current 74.56 72.80 76.31 62.28 75.43 66.76 42.11 18.42 68.42

SURVEY AREAS TILKA MANJHI KATCHARI CHOWK ADANPUR MANDROJA URDU BAZAR STATION CHOWK SWAMI VIVEAKANANDA PATH KOTWALI CHOWK SABOUR BHIKHANPUR ISHAKCHAK MIRJAAN

LIMITATION
`

As per the company secrecy policy I was asked not to disclose original name of vendor & distributors. Figure taken as per closing balance on 31st March 2008. Following are the limitation faced during the study. 

The study was limited to selected items only. 

Since the storage space of was limited so many time the not much milk was stored.

SCOPE/FUTURE
It is growing sector that is why scope of dairy is always higher. The demand is getting higher day to day. That is why the growth of dairy always higher. It is only dairy plant in this area. So there is no competitor of this plant and the company growth is getting higher & higher at every year. There for we can say that it has covered the major area of Bihar. The things like transport management, product scheduling, packing and information system. And this is the area which should lead to smooth.

CONCLUSION 
To get the feeling of through professionalism in the company.  Learning operations of various other departments of the company.  Learned the production & logistic management of the product.  Got appreciation for my work.

Suggestion 
The dairy plant has made a distributor from one of his retailer that is why the contradiction between has formed between many of the retailers .It should be eradicated so that equal weighted should be given to all the retailers.  Personnel department is poorly manned under staffed hence it should be made broad so as to merge and cordially develop a congenial environment for better working condition for the employees.  The existing system of employing a person on daily basis should be reconsidered so that they have a feeling of job security and the wage rates should be revised often.

BIBLOGRAPHY Bhagalpur Dairy Marketing Management (Philip Kotler) Internet Consumer Response Faculty Members (PGDM+PGDIEM) Logistic management (L.C.J HAM)

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