INTRODUCTION

Definition of Marketing:

According to Peter.F.Drucker :

Marketing is so basic that it cannot be considered as a separate function. It is whole business sees

from the point of view of its final results i.e., from the customer’s point of view. Business is not

determined by the produced by the consumer

According to Philip Kotler :

Marketing is a social and managerial process by which individuals and groups obtain what they

need and want through creating, offering and exchanging products of value with others.

American marketing association defined marketing as:

The process of planning and executing the conception pricing, promotion and distribution of

ideas, goods and services to create exchange that satisfy individual and organizational objectives.

Origin of Market:

Marketing is indeed an ancient art, has been practiced in one form or the other since the days of

Adam and Eve. Marketing is a comprehensive them and if included all resources and set of

activities necessary to direct and facilities the flow of goods and services from producer to

consumer in the process of distinction. It emerged as a management discipline, however is of

recent origin.

The pre-industrialized as characterized by agriculture cum handicraft economy, practically every

village community produced its own food, clothing, shelter and house of equipment.

Agriculture and craftsmen were the main producers of these are the agriculturists, whether he
produced corn or cotton, meat or butter, disposed of the surplus after meeting his own
requirements in his immediate neighborhood.

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In other words, marketing under those conditions meant a task of producing the basic necessities
of life and exchanging them with known consumer groups in the immediate neighborhood, this
represents the exchange system.

Marketing management

Marketing Management is a business discipline which is focused on the practical application of

marketing techniques and the management of a firm's marketing resources and activities. Rapidly

emerging forces of globalization have compelled firms to market beyond the borders of their

home country making International marketing highly significant and an integral part of a firm's

marketing strategy. Marketing managers are often responsible for influencing the level, timing,

and composition of customer demand accepted definition of the term. In part, this is because the

role of a marketing manager can vary significantly based on a business' size, corporate culture,

and industry context.

For example, in a large consumer products company, the marketing manager may act as the

overall general manager of his or her assigned product To create an effective, cost-efficient

Marketing management strategy, firms must possess a detailed, objective understanding of their

own business and the market in which they operate. In analyzing these issues, the discipline of

marketing management often overlaps with the related discipline of strategic planning.

Marketing strategy

If the company has obtained an adequate understanding of the customer base and its own

competitive position in the industry, marketing managers are able to make their own key

strategic decisions and develop a marketing strategy designed to maximize the revenues and

profits of the firm. The selected strategy may aim for any of a variety of specific objectives,

including optimizing short-term unit margins, revenue growth, market share, long-term

profitability, or other goals.

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To achieve the desired objectives, marketers typically identify one or more target customer

segments which they intend to pursue. Customer segments are often selected as targets because

they score highly on two dimensions:

1) The segment is attractive to serve because it is large, growing, makes frequent purchases, is

not price sensitive (i.e. is willing to pay high prices), or other factors; and

2) The company has the resources and capabilities to compete for the segment's business, can

meet their needs better than the competition, and can do so profitably. In fact, a commonly cited

definition of marketing is simply "meeting needs profitably.

The implication of selecting target segments is that the business will subsequently allocate more

resources to acquire and retain customers in the target segment(s) than it will for other, non-

targeted customers. In some cases, the firm may go so far as to turn away customers who are not

in its target segment. The doorman at a swanky nightclub, for example, may deny entry to

unfashionably dressed individuals because the business has made a strategic decision to target

the "high fashion" segment of nightclub patrons.

In conjunction with targeting decisions, marketing managers will identify the desired positioning

they want the company, product, or brand to occupy in the target customer's mind. This

positioning is often an encapsulation of a key benefit the company's product or service offers that

is differentiated and superior to the benefits offered by competitive products. Ideally, a firm's

positioning can be maintained over a long period of time because the company possesses, or can

develop, some form of sustainable competitive advantage. The positioning should also be

sufficiently relevant to the target segment such that it will drive the purchasing behavior of target

customers

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CONCEPT OF THE BRAND:

Branding is a major issue in product strategy. Well-known brands command a price premium.

Japanese companies such as Sony and Toyota have built a huge brand-loyal market. At the

same time, developing a branded product requires a great deal of long-term investment,

especially for advertising, promotion, and packaging.

Perhaps the most distinctive skill of professional marketers is their ability to create, maintain,

protect, and enhance brands. Branding is the art and cornerstone of marketing. The American

Marketing Association defines a brand as: a name, term, sign, symbol, or design, or a

combination of them, intended to identify the goods or services of one seller or group of sellers

and to differentiate them from those of competitors. Thus a brand identifies the seller or maker.

Under trademark law, the seller is granted exclusive rights to the use of the brand name in

perpetuity. Brands differ from other assets such as patents and copyrights, which have

expiration dates.Companies need to research the position their brand occupies in the customers'

minds.

According to Kevin Keller, "What distinguishes a brand from its unbranded commodity

counterparts is the consumer's perceptions and feelings about the product's attributes and how

they perform. Ultimately, a brand resides in the minds of consumers." There are three

commonly used research approaches to get at brand meaning:

1. Word associations: People can be asked what words come to mind when they hear the
brand's name.

2. Personifying the brand: People can be asked to describe what kind of person or animal
they think of when the brand is mentioned. The brand persona delivers a picture of the more

human qualities of the brand.

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Laddering up to find the brand essence: Brand essence relates to the deeper, more abstract goals

consumers are trying to satisfy with the brand.A brand can be better positioned by associating its

name with a desirable benefit.

BRANDING CHALLENGES

BRANDING DECISION: TO BRAND OR NOT TO BRAND

The first decision is whether to develop a brand name for a product. In the past, producers and

intermediaries sold their goods out of barrels, bins, and cases, without any supplier

identification. Buyers depended on the seller's integrity. The earliest signs of branding were

the medieval guilds' efforts to require craftspeople to put trademarks on their products to

protect themselves and consumers against inferior quality. In the fine arts, too, branding began

with artists signing their works.

Today, branding is such a strong force that hardly anything goes unbranded. So-called

commodities do not have to remain commodities. Salt is packaged in distinctive containers,

oranges are stamped with growers' names, nuts and bolts are packaged in cellophane with a

distributor's label, and automobile components—spark plugs, tires, filters—bear separate

brand names from the automakers. Fresh food products—such as chicken, turkey, and salmon

—are increasingly being sold under strongly advertised brand names. Even bricks do not

have to be seen as commodities.

BUILDING BRAND IDENTITY

Building the brand identity requires additional decisions on the brand's name, logo, colors,

tagline, and symbol. At the same time, a brand is much more than a name, logo, colors, a

tagline, or symbol. These are marketing tools and tactics. A brand is essentially a marketer's

promise to deliver a specific set of features, benefits, and services consistently to the buyers.

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The marketer must establish a mission for the brand and a vision of what the brand must be

and do. The marketer must think that he is offering a contract to the customer regarding how

the brand will perform. The brand contract must be honest.

At best, the brand campaign will create name recognition, some brand knowledge, maybe even

some brand preference, but an ad campaign does not create brand bonding, no matter how

much the company spends on advertising and publicity. Brand bonding occurs when customers

experience the company as delivering on its benefit promise. The fact is that brands are not

built by advertising but by the brand experience.Companies must use the brand-value

proposition as the key driver of the company's strategy, operations, services, and product

development.

Companies must measure their brand-building effectiveness not by the old measures of

awareness, recognition, and recall, but by a more comprehensive set of measures including

customer-perceived value, customer satisfaction, customer share of wallet, customer retention,

and customer advocacy.

BRAND EQUITY

Brands vary in the amount of power and value they have in the marketplace. At one extreme

are brands that are not known by most buyers. Then there are brands for which buyers have a

fairly high degree of brand awareness Beyond this are brands with a high degree of brand

acceptability. Then there are brands that enjoy a high degree of brand preference/Finally, there

are brands that command a high degree of brand loyalty Few customers are this brand-loyal.

David Aaker distinguished five levels of a customer attitude toward a brand, from lowest to

highest:

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1. Customer will change brands, especially for price reasons. No brand loyalty.
2. Customer is satisfied. No reason to change the brand.
3. Customer is satisfied and would incur costs by changing brand.
4. Customer values the brand and sees it as a friend:

Brand equity AS highly related to how many customers are in classes 3, 4, or 5. It is also related,

to the degree of brand-name recognition, perceived brand quality, strong mental and emotional'.

Associations, and other assets such as patents, trademarks, and channel relationships."Customers

will pay more for a strong brand.

VALUE OF BRAND EQUITY

Clearly, brand equity is an asset. We define brand equity as the positive differential effect that

knowing the brand name has on customer response to the product or service. Brand equity

results in customers showing a preference for one product over another when they are basically

identical. The extent to which customers are willing to pay more for the particular brand is a

measure of brand equity.

High brand equity provides a number of competitive advantages:

The company will have more trade leverage in bargaining with distributors and retailers

because customers expect them to carry the brand.

The Company can charge a higher price than its competitors because the brand has higher

perceived quality.

The Company can more easily launch extensions because the brand names carries high

credibility.

The brand offers the company some defense against price competition.

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1.1 CONCEPTUAL FRAMEWORK

A brand needs to be carefully managed so that its equity does not depreciate. This requires

maintaining or improving brand awareness, perceived quality and functionality, and positive

associations. These tasks require continuous R&D investment, skillful advertising, and

excellent trade and consumer service. Procter & Gamble believes that well-managed brands are

not subject to a brand life cycle. Many brand leaders of 70 years ago are still today's brand

leaders: Kodak, Wrigley's, Gillette, Coca-Cola, Heinz, and Campbell Soup. Some analysts see

brands as outlasting a company's specific products and facilities. They see brands as the

company's major enduring asset. Every powerful brand really represents a set of loyal

customers. Brand equity is a major contributor to customer equity. The proper focus of

marketing planning isto extend customer lifetime value, with brand management serving as a

major marketing tool.

Why do sellers brand their products when doing so clearly involves costs? Branding gives the

seller several advantages:

The brand name makes it easier for the seller to process orders and track down problems.

The seller's brand name and trademark provide legal protection of unique product features.

Branding gives the seller the opportunity to attract a loyal and profitable set of customers.

Brand loyalty gives sellers some protection from competition.

Branding helps the seller segment markets. Instead of P&G's selling a simple detergent, it can

offer eight detergent brands, each formulated differently and aimed at specific benefit-seeking

segments.

Strong brands help build the corporate image, making it easier to launch new brands and gain

acceptance by distributors and consumers.

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Distributors and retailers want brand names because brands make the product easier to handle,

hold production to certain quality standards, strengthen buyer preferences, and make it easier to

identify suppliers. Consumers want brand names to help them identify quality differences and

shop more efficiently.

BRAND-NAME DECISION

Manufacturers and service companies who brand their products must choose which brand
names to use. Four strategies are available:

1. Individual names:
2. Blanket family names:
3. Separate family names for all products:
4. Corporate name combined with individual product names:
5. It should suggest something about the product's benefits:
6. It should suggest the product or service category:
7. It should suggest concrete, "high imagery" qualities:
8. It should be easy to spell, pronounce, recognize, and remember
9. 11 should be distinctive:

BRAND-BUILDING TOOLS

A common misconception is that, brands are-basically built by advertising. It is true

that TV advertising in its early days was the most effective brand-building tool. There were

very few TV stations and people watched the comedies, dramas, and ads with almost equal

interest. Now, viewers may be watching one of dozens of TV stations, and many are zapping

or ignoring the commercials. In fact, many more are simply not watching TV. They are busy

on their computers or engaged in recreational activities.

Marketers are therefore turning to other tools for attracting attention to their brands. Among

the most important are:

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• Public relations and press releases: Brands can gain a lot of attention from well-placed

newspaper and magazine stories, not to mention appearing visually in Hollywood films.

• Sponsorships: Brands are frequently promoted in sponsored events such as world-famous

bicycle and car races.

Clubs and consumer communities: Brands can form the center of a customer community,

such as Harley-Davidson motorcycle owners or Bradford plate collectors.

Factory visits: Hershey’s and Cabury’s, two candy companies, have built theme parks at their

factories and they invite visitors to spend a day.

Trade shows: Trade shows represent a great opportunity to build brand awareness, knowledge,

and interest.

Event marketing: Many automobile companies make an event out of introducing their new car

models.

Public facilities: Perrier, the bottled water company, etched its identity in the public mind by

building running tracks in public parks to promote healthful lifestyles.

Social cause marketing: Brands can achieve a following by donating money to charitable

causes. Ben & Jerry's Ice Cream turns over 7 percent of its profits to charity.

High value for the money: Some brands create positive word of mouth by offering exceptional

value for the money. Examples include IKEA and Southwest Airlines.

Founder's or a celebrity personality: A colorful founder, such as Richard Branson, or a

celebrity personality, such as Michael Jordan, can create positive affect for a brand.

Mobile phone marketing: Customers in the future will hear about brands on their wireless

mobile phones

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1.2 REVIEW OF LITERATURE:

Brands play a key role in enhancing the value of products and protecting the product from being
imitated by competitors (Aaker 1991). In fact, ‘A product is something that is made in a factory;
a brand is something that is bought by a customer. A product can be copied by a competitor; a
brand is unique. A product can be quickly outdated; a successful brand is timeless’ (King, cited
in Aaker 1991, p. 1). Therefore, brand equity is one of the most interesting topics to both
academic researchers and practitioners (Wood 2000).
Two main approaches to brand equity are indicated as the financial and the customer perspective
(Myers 2003). Compared to the financial approach of brand equity, customerbased brand equity
has dominated the literature on branding. However, customer-based brand equity has received
considerable attention in the individual consumer context, but relatively little in a businessto-
business context. In short, the development of branding theory from service rendering brands
will make a significant contribution to both brand managers and marketing researchers. Please
purchase PDF Split-Merge on www.verypdf.com to remove this watermark.

J. Douglas McConnell (1968)1 , has conducted a research study titled, “The Development of
Brand Loyalty: An Experimental Study”, A field experiment with a factorial design showed that
consumers developed preferences for three brands of a physically homogeneous product (beer),
identical except for brand name and price. The significance of the experiment for marketing
researchers lies mainly in the relative importance of perceived quality as a determinant of brand
loyalty. Obviously price is only one cue to quality in the real world, and this makes perceived
quality more difficult to measure than purchases over time. Nevertheless, it is considered that
more complex models having such variables will provide considerably greater predictive power
than the stochastic models being suggested.

Jagdish N. Sheth (1968)2 , in the paper, “A Factor Analytical Model of Brand Loyalty”, With
factor analysis as a method of estimating parameters, an empirical model of measuring brand
loyalty for individual consumers based on frequency and pattern of purchases is presented. Since
we are more accustomed to probability notions, an interesting extension of this research would
be to establish isomorphic transformation of brand loyalty scores into probability measures. The
resulting probabilities would then be functions of both frequency and pattern (history) of
purchases because brand loyalty scores are themselves based on both frequency and pattern of
purchases.

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 Kevin Lane Keller (1993)3 , has contributed a paper in the topic, “Conceptualizing,
Measuring, and Managing Customer-Based Brand Equity”. The author presents a conceptual
model of brand equity from the perspective of the individual consumer. Customer-based brand
equity occurs when the consumer is familiar with the brand and holds some favorable, strong,
and unique brand associations in memory. The article also explores some specific aspects of this
conceptualization by considering how customerbased brand equity is built, measured, and
managed. Building brand equity requires creating a familiar brand name and a positive brand
image-that is, favorable, strong, and unique brand associations. Strategies to build customer-
based brand equity are discussed in terms of both the initial choice of the brand identities (brand
name, logo, and symbol) and how the brand identities are supported by and integrated into the
marketing program. Two basic approaches to measuring customer-based brand equity are
outlined. The indirect approach measures brand knowledge (brand awareness and image) to
assess the potential sources of brand equity. The direct approach measures the effects of the
brand knowledge on consumer response to elements of the marketing mix. This article provides
the base for this research study.
Chan Su Park and V. Srinivasan (1994)4 , their study on “A Survey-Based Method for
Measuring and Understanding Brand Equity and Its Extendibility” the authors develop a new
survey-based method for measuring and understanding a brand's equity in a product category and
evaluating the equity of the brand's extension into a different but related product category. It uses
a customer-based definition of brand equity as the added value endowed by the brand to the
product as perceived by a consumer. It measures brand equity as the difference between an
individual consumer's overall brand preference and his or her brand preference on the basis of
objectively measured product attribute levels. To understand the sources of brand equity, the
approach divides brand equity into attribute-based and non attribute-based components. 3.

Kevin Lane Keller, Conceptualizing, Measuring, and Managing Customer-Based Brand Equity,
The Journal of Marketing, Vol. 57, No. 1 (Jan.,1993), pp. 1-22. American Marketing
Association. 4. Chan Su Park; V. Srinivasan (1994, A Survey-Based Method for Measuring and
Understanding Brand Equity and Its Extendibility, Journal of Marketing Research, Vol. 31, No.
2, Special Issue on Brand Management (May, 1994), pp. 271-288. Publisher(s): American
Marketing Association. The method provides the market share premium and the price premium
attributable to brand equity.

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1.3 NEED AND IMPORTANCE OF THE STUDY

Milk and its products constitute and important part of daily diet. Milk is known as the most

significant and complete food among all the food products, since early ages of human life. Its

supplies body building proteins, bone forming minerals health giving vitamins energy and also

gives lactose and milk fats, etc besides providing certain essential fatty acids, it contains

nutritional for easily digestive and assailable form. All theses properties for easily digestive and

assumable form. All these properties make milk an important food product in universe. In

highly developed countries, milk and its products constitutes an important part of daily diet.

Therefore those societies normally enjoy complete freedom from diseased associated with

malnutrition, which is commonly found in developing countries with extreme milk production,

and supply methods.As Indian economy is predominantly agricultural sector, dairy and animal

husbandry form an important activity of its farmers. This dairying activity constitutes 10% of

total G.D.P Indian agriculture being a seasonal activity; it cannot engage farmers throughout the

year. Certain activities like dairying, sheep rearing poultry etc. will have tot be taken uOp while

major part of the milk is produced in rural area, but the demand for milk is mainly from urban

area. As urban areas have high density of population and its population is mostly engaged in

non-agricultural activities, they have to depend on rural areas for supplying of milk. Normally

urban consumers receive milk through private milk vendors who collect milk from villages.

1.4 OBJECTIVES OF THE STUDY

1. To study the Consumer awareness regarding branded milk in particular Vijaya Dairy.

2. To know the purpose of usage of milk.

3. To know the criteria for purchasing the branded milk.

4. To know the percentage of consumers using milk

5. To offer some suggestion to the organizations to increase the brand awareness towards

Vijaya dairy milk.

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1.5 SCOPE OF THE STUDY

Though this study is mainly based upon investigation done by the researcher in Warangal,

Hanamkonda & Kazipet. The major aspects can be generalized with marginal regional

variations. Results can be used by Vijaya Dairy for better results. The study is done on only

100 responden- -ts to examine the brand effectiveness of vijaya brand milk.

1.6 DATA AND METHODOLOGY

Sources of data

The present study is based on primary and secondary Data, both primary and secondary source

of data has been extensively used in the project Primary data is directly collected from the

respondents with the help of personally administrated questionnaire.

Secondary data is collected through different types of company reports like sales records,

production records, retailers and dealers etc. The main information was obtained through

Director of statistics and planning.

METHODOLOGY

Sample design:

Sample for this study is any respondent who is aware and users of milk, which includes the

male and females.

1.7 SAMPLE SIZE:

Samples of 100 consumers were selected by using sample random technique. Considering the

time involved in administrating the questionnaire personally, Only100 respondents are selected

from Warangal city.

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Research instrument:

A questionnaire is used as an instrument for collecting the required information from the

respondents. Proper use of open ended, multiple choice and dichotomous question are used for

eliciting the required information.

Statistical methods:

While analyzing and interpreting the data, simple statistical techniques like averages,

percentages have been used. For graphical presentation simple bar diagrams, tables and pie

charts are used.

1.8 LIMITATIONS OF THE STUDY

1. Study is confined to warangal, Hanumakonda, kazipet, ties-city only.

2. Respondents (sample) are chosen on random basis for the research.

3. Time and cost constraints (six weeks only).

4. Opinions expressed by respondents may not be 100% true.

5. The findings that have emerged out of study may not represent that of

the entire population.

6. The suggestions are given from the researcher’s perspective.

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1.9 CHAPTERISATIION SCHEME

The proposed study is organized into four chapters for the sake of convenience and ease of
reporting. The details of are as follows .

The first chapter titled ‘ introduction ‘ is introductory in nature deals with introduction of
study ,theoretical concept , Need and importance , objectives of study , scope , Data and
methodology , limitations of the study , and details of chapterization scheme .

The second chapter titled ‘Industry and Organization profile ‘presents profile, status,
and charts of organization and its building distribution systems.

The third chapter titled ‘Data Analysis & Interpretation ‘tries to analyze the data and
facts collected in the study in terms of perception of consumer in dairy industry and
profiles of customers.

The fourth chapter titled ‘Conclusions and suggestions ‘tries to present the conclusions
with have emerged from the main findings of the study and offers suggestions.

Bibliography

Appendix contains questionnaire.

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 CHAPTER-II

ORGANISATION PROFILE

In Warangal district, the dairy plant was established on 16 th October 1971. The activities of

dairy were started with an objective to meet the requirements of milk producers and

consumers. It was initially operated with a plant capacity of 12,000 liters per day. As the

demand for the milk from the consumer and procurement of milk from milk producers

increased day by day the management of Warangal Diary thought to increase the capacity of

the plant. From 1992 onwards the plant capacity has been increased to 50,000 liters per day.

As we know the state government has established Dairy Development Department in 1970.

Warangal dairy was started in 1971 as one of its first dairy. Again the state government

established “Andhra Pradesh Dairy Development Corporation Ltd. (TSDDC LTD.) Warangal

Dairy also comes under its control.

As the Government of Andhra Pradesh has decided to implement, Operation Flood – II

programmer in the state, the organization structure of TSDDC LTD. has been changed.

Therefore, in 1981, TSDDC LTD. was converted in “Telangana Dairy Development Co-

operative Federation Limited”.

As the Warangal District Milk Producers Mutually Aided Co-operative Union Ltd is under

control of TSDDCF LTD., the management of Warangal Dairy transferred the supervision

power to a separate co-operative union. It is to bring the range of milk under the jurisdiction of

milk producers and to bring self-regulatory authority. Thus Warangal and Khammam milk

producers co-operative union was temporarily established and registered on 13.03.1997 this

union was registered finally. The elections for the management of this co-operative society

have been held on 03.09.1997. From 1st November 1998 the milk jurisdiction of Khammam

and Warangal districts has been entrusted to Warangal and Khammam milk producer’s co-

operative union limited.

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 These milk-chilling centers collect milk from collection centers of villages and the collected

milk is chilled at the concerned chilling centers and it is transported to WARANGAL Dairy.

The processed milk at Warangal dairy is marketed to the milk consumers in the district.

Distribution of milk in Warangal dairy is done in following phases.

1. Procurement of milk

2. Chilling

3. Standardization

4. Pasteurization

Procurement of Milk :

Milk is procured to the dairy from milk producers from 11,900 villages with their respective

milk co-operative societies. The average milk consumption is nearly 50,000

liters per day throughout the year and the sales will 20,000 per day. The sales revenues per day

is 2.8 Lakhs and the monthly turn over will be one Crore rupees.In the procurement of milk

there occurs two seasons. They are :-

1. Season and

2. Un-season (lean season).

The “season” states from October to February. In this period, the procurement of milk

increases to 40,000 liters per day. This season is called as “FLUSH SEASON”, where as in

un-season i.e., from March to September. The procurement will be as usual that is 20,000

liters per day.

Chilling :

The procured milk is chilled at chilling centers at 4°C. The chilled milk than goes to next

stage called Standardization stage.

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Standardization:

The milk will be standardized to different fat and SNF(solid not fat) content with the

separation of cream and if necessary SMP will be added to increase SNF content.

For example: Toned milk 3.0% fat & 8.5% SNF.

Double Toned milk 1.5% fat & 9.0% SNF.

Pasteurization :

It means heating of each and every portion of milk to certain time temperature combination to

kill all pathogenic bacteria.

EX: High temperature short time (HTST) 72°C for 16 seconds. Low temperature longer

time (LTLT) 63°C for 30 minutes. The formed milk is distributed in packets throughout the

district.

OBJECTIVES OF WARANGAL DISTRICT MILK PRODUCERS MUTUALLY AIDED

CO-OPERATIVE UNION LIMITED:

1. To provide a good market for rural as well as urban milk producers.

2. To increase awareness among the consumers about its products.

3. To supply pasteurized milk to the people of Warangal and khammamfor a reasonable

price.

4. To increase the sales by improving the quality.

5. To provide easy availability of milk to consumers.

6. To educate the people by standard milk through advertising and marketing.

7. Fulfillment of social obligations.

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 ABOUT DAIRY INDUSTRY

Brief History of Dairy Development in Telangana:

Prior to the entry of the state into the business of dairying, it was mainly in the hands of

individual entrepreneurs who were largely unorganized. Quality milk was not supplied to the

consumers and even the costs of the milk and milk products were high. Hence, the state

Government organized the entire dairy industry into one by setting up a Department in the

Government and also by encouraging the establishment of village level Milk Producers’

Cooperative Societies for the Development of dairy industry on democratic lines.

Prior to 1960, dairy development was one of the many subjects in the state attached to

the Department of Animal Husbandry. Initially, a Pilot Milk Supply Scheme was started during

the 1960-61 in Hyderabad as a prelude to the implementation of the Integrated Milk Project in

1964. The Department of Animal Husbandry was entrusted with the responsibility of

implementing the Pilot Milk Supply Scheme.

In 1964, two major projects of Milk Powder Factory, one at Vijayawada and the other,

Central Dairy, Hyderabad were started under the Integrated Milk Project with a financial aid or

Rs. One Crore from the UNICEF. Thus, the dairy development in the state took a new turn.

Till then, there was no organized dairy sector worth the name in the state.

In 1967, the dairy at Rajendranagar was transferred to the Central Dairy, Hyderabad.

Simultaneously, the milk powder Factory, Vijayawada and the chilling centers in the Krishna

district were also taken up. The work in respect of the cooperative Dairies at Nellore, Chittor,

Warangal and Kurnool was completed.

Milk Procured at different centers in the state was marketed at Hyderabad through the Central

Dairy. The Chilling and Cooling centers at Warangal, Khammam and Nizamabad were the

main feeders for the Central Dairy, Hyderabad through the Milk Producers’ Cooperative

Societies.

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Such Societies procured milk from its members and transported it to the nearest processing

plant through the Regional Offices. Procurement of Milk from the societies was managed by

the Asst. Milk Commissioner who was assisted by one Milk Procurement Officer, two

Assistant Milk Procurement Officers, two field managers and one instructor.

In 1971-72, the state Government established a separate Dairy Development Department as a

part of the state Ministry of Food and Agriculture, as the need for milk supply was growing

imminent. The Integrated Milk Project with other dairy units including the few cooperative

dairies was attached to the new department. The execution of dairy development programs

were entrusted to a Milk Commissioner, a Marketing Officer, a Public Relation Officer, a

number of Engineers and a Deputy Cooperative Registrar to manage the different aspects of

the work relating to the Integrated Milk Project.

The Commissioner’s Office was also entrusted with the work of harnessing milk potential in

the four districts of Costal Andhra Pradesh viz., Krishna, Guntur, West Godavari and East

Godavari and three districts of Telangana i.e., Hyderabad, Nalgonda and Mahbubnagar. This

office continued to exist till the formation of Andhra Pradesh Dairy Development Corporation

in 1974-75.

With the launch of Pilot Milk Supply Scheme in 1961-62, the procurement and sale of milk

were started in Andhra Pradesh covering the twin cities of Hyderabad and Secundrabad and

Vijayawada, the major urban centers in the state at that time.

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 SWOT Analysis of Indian Dairy Industry:
Strengths
 Large number of small and marginal 
farmers involved in dairying
 An effective marketing channel helps to well as ensuring more fair farmer prices
meet the demands of the urban consumer
 Very large number of animals and huge
scope to enhance productivity
 Self-sufficiency in medicine production
and do not have to rely on exports
Weaknesses
 Large share of milk (70–85%) of
marketable surplus goes through informal
channel where quality is a big concern
 Sometimes quality is an issue in the
formal channel as well
 Very little competition to cooperatives 
because private sector was not allowed to
participate in until recently
 Farmers do not share in the benefits of
high demand because of poor governance of
cooperatives
 Milk production is scattered over a
large number of farmers producing miniscule
quantities
 Milk distribution is limited to urban and
 Enhance packaged milk distribution in
peri-urban areas
 Low milk prices because of lower
prices declared by cooperatives, which
results in low prices of milk paid by all
How to build on them
Strengthen economic viability of dairy
farms by interventions on the input side as
 Increase the link between rural
production areas and urban markets
 Focus on strengthening the indigenous
breed to help significantly enhance
productivity
 Ensure availability of quality medicines
by strengthening regulatory framework for
quality
How to correct them
 Focus on quality issues even in the
informal channel by training traders and by
enforcing food quality regulations
 Develop infrastructure and training for
clean milk production
Support a fair playing field for the
private sector
 Bring about changes in cooperatives to
make them true representatives of farmers
instead of functioning as parastatals.
 Support to dairying as an enterprise to
encourage commercial dairy farming and
encourage production and productivity by
extension and breed development
more areas
 Strengthen dairy farmer cooperatives to
enable farmers to get a higher price for milk
 Create rational export policy to enable
22
 players
 Ad hoc export policies and a ban on
exports
 Quality of milk and milk products are a
barrier to entry to the export market,
especially the EU and the USA
 Lack of policy focus on strengthening 
indigenous breeds
 Non-existent extension facilities
 Farmers’ prices are not based on fat
measurement, which affects their profitability
 Increase access to credit through dairy
 Because of low access to credit and
risk-taking ability, farmers cannot increase
their herd size
Opportunities
 Increased farmer income by exploiting
the high demand
 Increased consumer sophistication and
awareness of quality reception of quality
packaged products (though slowly)
 Entry of large corporations in retailing,
which can lead to more investment
 Immense scope to enhance governance
of dairy farmer organizations and thus enable
dairy farmers to demand higher prices
 Potential for exports due to low cost of
production
 Overall positive growth environment,
which is triggering the Government to
enhance infrastructure
Threats
 Large portion of the population does 
not care about quality issues in milk
 Because of high price sensitivity for
farmers to take advantage of higher prices
 Strictly implement quality regulations
and improve infrastructure and training for
quality
 Strengthen the breed development
programs
Strengthen extension facilities
 Create policy regulations to make
mandatory testing as a basis for setting milk
price
farmer organizations and other agencies
How to pursue them
Create policies and activities geared
towards enhancing dairy farming activity by
increasing, production, productivity and
ensuring fair farmer price of milk
 Establish enabling policy environment to
enhance investment
 Create policy support to enhance
governance of producer companies
Focus on quality issues that are a barrier
to exports
Encourage private sector to increase
investment in dairying
How to avert them
Initiate consumer education about the
negative health impacts of unpackaged
products
23
 dairy products, people are not willing to pay  Develop packaging in small quantities to
for quality meet the needs of the poor
 Significant increase in maize prices can Increase milk prices in accordance with
 increase feed prices feed prices
 Large informal markets that extend  Support expansion of dairy farmer
credit are constraining farmers organizations
 Low productivity and scattered  Enhance productivity by breed
production leading to high cost of improvement and extension
transportation  Enforce price setting of milk based on fat
 Emphasis on milk fat and not on SNF and SNF content to encourage production of
content maintaining relatively lower prices of cow milk
milk

CHAPTER –III

24
 DATA ANALYSIS AND INTERPRETATION

. TABLE: 3.1
1. Statement showing gender of respondent

Source: Questionnaire

GENDER NO. OF RESPONDENTS PERCENTAGE

56 56
MALES
44 44
FEMALES
100 100
TOTAL
CHART: 3.01

INTERPRETATION: -

From the above table 3.1 it is observed that 56% of the respondents are males and 44% are

females.

TABLE 3.2

2. Statement showing age of respondent

25
AGE GROUPS NO. OF RESPONDENTS PERCENTAGE
BELOW 20 YEARS 10 10
20-30 YEARS 38 38
30-40 YEARS 21 21
40-50 YEARS 10 10
ABOVE 50 YEARS 21 21
TOTAL 100 100
Source: Questionnaire

CHART: 3.02

INTERPRETATION:-

The data in table 3.2 shows that 38% respondents are in the age group of 20-30 years. Around

21% are in the age group of 30-40 years. At the same time 21% are above 50 years. The other

10% respondents are below 20 years.

.Occupation plays a major role in customer’s purchase patterns. Occupation profile of

respondents is presented in table 3.3

TABLE 3.3

26
3.Occupation plays a major role in customer’s purchase patterns

OCCUPATION NO. OF RESPONDENTS PERCENTAGE

RETIRED GOVT. EMPLOYEES 16 16
HOUSEWIFE'S 32 32
STUDENTS 10 10
PRIVATE EMPLOYEES 8 8
LECTURERS 9 9
BUSINESS PEOPLES 16 16
GOVT. EMPLOYEE 9 9
TOTAL 100 100
Source: Questionnaire

CHART:3.03

INTERPRETATION:-

The data table 3.3 indicates that 32% respondent are housewife’s. Around 16% are

Retired Govt. Employees and others 16% are doing business. 9% are lecturers, 9% are

Government jobs. About 10% are students. The remaining 8% are private employees.

.4.

TABLE 3.4

4. Statement showing marital status of respondents

27
 MARRIED NO. OF RESPONDENTS PERCENTAGE

YES 73 73

27 27
NO

TOTAL 100 100

Source: Questionnaire

CHART:3.04

INTERPRETATION:-

The data in table 3.4 shows that 73% of the respondents are married. The remaining

27% are un-married.

TABLE 3.5

5.Statement showing income wise distribution of respondents

28
 INCOME GROUP NO. OF RESPONDENTS PERCENTAGE
BELOW 1 LACKS 40 40
1-2 LAKHS 22 22
2-3 LAKHS 30 30
3-4 LAKHS 6 6
ABOVE 4 LAKHS 2 2
TOTAL 100 100
Source: Questionnaire

CHART:3.05

INTERPRETATION:-

From the data in table 3.5, it is evident that 40% respondents have an income of below 1

lakh P.A., Around 30% respondents are earning Rs. 2-3 lakhs P.A., About 23% respondents are

earning Rs. 22% respondents are earing Rs. 1-2 lakhs P.A. at the same time 6% respondents are

earning Rs. 3-4 lakhs P.A. the remaining 2% respondents earn above Rs. 4 lakhs P.A..

TABLE 3.6

6.Statement showing family size of respondents

29
 FAMILY SIZE NO. OF RESPONDENTS PERCENTAGE
2 10 10
3 31 31
4 37 37
5 12 12
6 6 6
ABOVE 6 4 4
Total 100 100
Source: Questionnaire

CHART:3.06

INTERPRETATION:-

The data in table 3.6 shows that 37% respondents have more then four members in their

families. Around 31% respondents have 3 members. In 12% families there are five members. At

the same time, 10% respondents have two members. About 6% respondents have 6 members in

their families. The remaining 4% have above 6 members in their families.

TABLE 3.7

7. Statement showing respondents to know whether they consume branded milk or not

30
 CONSUMPTION NO. OF RESPONDENTS PERCENTAGE
92 92
YES
8 8
NO
100 100
TOTAL
Source: Questionnaire

CHART:3.7

INTERPRETATION:-
The data in table 3.7 shows that 92% respondents are consume branded milk and 8%

does not consume branded milk.

TABLE 3.8

8. Statement showing specify the milk brand that they are consuming

31
 BRANDS NO. OF RESPONDENTS PERCENTAGE
NAGARJUNA 17 17
MULKANOOR 31 31
VIJAYA 20 20
VYSHNAVI 4 4
HERITAGE 7 7
THIRUMAL 7 7
JERSEY 6 6
OTHERS/ UNBRANDED MILK 8 8
Total 100 100
Source: Questionnaire

CHART:3.08

INTERPRETATION:-
From the table 3.8 it is observed that 31% respondents consume Mulkanoor milk. About 20%
respondents are consuming Vijaya brand milk. Around 17% respondents are consuming
Nagarjuna brand milk. The other 8% respondents consume the unbranded or other milk. At the
same time 7% respondents are consuming Heritage and Thirumal brands respectively. About 6%
consume Jersey. The remaining 4% consume Vyshnavi brand milk.

TABLE3.9

9 Usage of the brands

32
MONTHS NO. OF RESPONDENTS PERCENTAGE
0-6 MONTHS 8 8
6 MONTHS - 1 YEAR 16 16
1-2 YEARS 16 16
2-3 YEARS 14 14
ABOVE 3 YEARS 46 46
TOTAL 100 100
Source: Questionnaire

CHART:3.9

INTERPRETATION:-

From the table 3.9 it is observed that most of the respondents (i.e. 46%) are consuming their

present brand milk over a period of more then 3 years. About 16% respondents are consuming

their present brand for a period of between 6 months- 1 year and other 16% for a period of

between 1-2 years respectively. Around 14% are consuming over a period of between 2-3 years.

The remaining 8% are consuming their present brand for a period of about 0-6months.

TABLE 3.10
10.Respondents to know the consumption of milk per day

CONSUMPTION (IN LTRS) NO. OF RESPONDENTS PERCENTAGE

33
0-1 LITERS 40 40
1-2 LITERS 36 36
2-3 LITERS 6 6
3-4 LITERS 10 10
ABOVE 4 LITERS 8 8
TOTAL 100 100
Source: Questionnaire

CHART:3.10

INTERPRETATION:-

From the table 3.10 it is observed that 40% of the respondents are consuming below 1

liters milk per day. Another 36% are consume 1-2 liters of milk per day. About 10% respondents

consume 3-4 liters of milk per day. For around 8% respondents consumption is above 4 liters.

The remaining 6% respondents are consuming 2-3 liters of milk per day.

A question is asked with respondents to know their place of purchasing a brand milk. Their

responses are tabulated and presented in table 3.11.

TABLE 3.11

11.Respondents to know their place of purchasing a brand milk

34
 NO. OF RESPONDENTS PERCENTAGE
RETAILER 20 20
HOME DELIVERY 24 24
KIRANA SHOP 26 26
WHOLE SELLER 18 18
ROAD SIDE VENDER 12 12
TOTAL 100 100
Source: Questionnaire

CHART:3.11

INTERPRETATION:-

The data in the table 3.11 shows that26% respondents purchase milk from kirana shop.

Around 20% respondents are purchasing milk from retailer. About 24% are getting milk through

home delivery. Around 18% respondents purchase milk from whole sale. The remaining 12% are

purchasing from road side vendor.

TABLE 3.12

12. Respondents to know their place of purchasing a brand milk

35
 PURPOSES NO. OF RESPNDENTS PERCENTAGE
DRINKING 10 10
TEA OR COFFEE 40 40
SWEETS 8 8
HEALTHDRINKS 13 13
ALL THE ABOVE 29 29
TOTAL 100 100
Source: Questionnaire

CHART:3.12

INTERPRETATION:-

The data in the table 3.12 shows that 40% respondents are using milk for making tea or

coffee purpose. An other 29% used milk for all the above purposes drinking, tea or coffee,

sweets etc., about 13% respondents use milk fro health drinks purpose. Around 10% are using

for drinking and the remaining 8% use brand milk for preparing sweets purposes.

TABLE 3.13
13.Reasons for purchasing a particular brand
Source: Questionnaire

36
REASONS NO. OF RESPONDENTS PERCENTAGE
TASTE 24 24
QUALITY 25 25
PRICE 8 8
AVAILABILITY 43 43
TOTAL 100 100

CHART:3.13

INTERPRETATION:-

From the table 3.13 it is observed that 43% respondents are purchasing a milk brand due to its

availability. Another 25% are purchasing milk brand for it’s quality. Around 24% purchases a

milk brand for its taste. The remaining 8% respondents considered price an attribute for

purchasing a milk brand.

37
 TABLE 3.14

14.Perception regarding Vijay milk quality

PERCETION NO. OF RESPONDENTS PERCENTAGE

EXCELLENT 8 8
GOOD 61 61
AVERAGE 28 28
BELOW AVERAGE 3 3
POOR 0 0
TOTAL 100 100
Source: Questionnaire

CHART:3.14

INTERPRETATION:-

The data in table 3.14 shows that 61% respondents feel that quality of Vijaya brand milk is good.

Around 28% said that vijaya brand milk is average. Around 8% respondents related Vijaya brand

milk excellent. The remaining 3% ranked it below average. No respondent ranked it poor.

38
 TABLE 3.15

15. Statement showing the Problem in Vijaya brand milk delivery

PROBLEMS NO. OF RESPONDENTS PERCENTAGE

PACKAGING 16 16
DIFFERENCE IN QUANTITY 5 5
DIFFERENCE IN QUALITY 6 6
AVAILABILITY 73 73
TOTAL 100 100
Source: Questionnaire

CHART:3.15

INTERPRETATION:-

From the table 3.15 it is observed that 73% respondents are facing problem in availability of

Vijaya brand milk. About 16% respondents are finding problem in packaging of Vijaya brand

milk. Around 6% find problem in difference of quality. The remaining 5% find problem in

difference in quantity.

39
 CHAPTER –IV

CONLUSIONS:

1) From the survey, it was found that most of the respondents are consuming Branded milk.
Majority of them consuming Vijaya brands.

2) From the survey, it is observed that most of the respondents have been using their present brand
milk for more than 3 years .

3) It is found that majority respondents are consuming below one liter of milk per day.

4) It is concluded that most of the respondents are purchasing the milk from kirana shops. And
most of them used it for preparing tea or coffee.

5) From the survey, it is found that availability of milk is the important factor in selecting a
particular brand of milk .

6) From the survey, it is found that respondents rated Vijaya milk quality as good .

7) It is observed that majority of respondent had problems in delivery of Vijaya milk. Most of
the respondents are receiving Vijaya milk promptly.

8) From the survey it is seen that most of respondents are satisfied with the price of Vijaya
milk.

9) From the survey, it is found that vijaya dairy is the major competitor to Vijaya milk dairy .

10) The respondents come to know about the branded milk mostly through
Advertisements.

11) Most of the respondents remember the tagline of Vijaya brand milk.

12) Most of the respondents are willing to recommend Vijaya milk others.

40
SUGGESTIONS

1) Increase the availability of Vijaya milk, which will create brand awareness in the market.

2) Increase the awareness of Vijaya butter milk, curd, ghee which are part of Vijaya brand

3) Maintain high quality of milk and other product In view of stiff competition.

4) The company has to use thick packing covers to avoid leakages .

5) The company has to design variety type of packing Covers to attract the Customer
6) The company has to reduce the price to attract all type of consumers.

7) The company has to offer some additional quantity of milk in festival days to attract more

number of customer.

8) The company has to establish more no of milk booths in the main corners of the city in

order to improve the sales

9) Look out for strategies, which will help in being different From the competitors like
gifting prices etc.

10) Advertising through wall paintings can play a pivotal role For brand effectiveness in the
market place.

41
 QUESTIONNAIRE

Name:
Gender: Male / Female
Age:
Occupation:
Married: Yes / No
Income P.A:
No. of family members
--------------------------------------------------------------------------------------------------------------------
-

1. Do you consume branded dairy milk?

Yes No

2. If yes, please specify the brand?

____________________________________________________
3.For how long have you been using the above brand?
(a) 0 – 6 months (b) 6 months – 1 year (c) 1 – 2 years
(d) 2 – 3 years (e) 3 years and above
4.. Quantity of consumption of milk per day :
(a) 0 – 1 ltrs (b) 1 – 2 ltrs (c) 2 – 3 ltrs
(d) 3 – 4 ltrs (e) 4 ltrs & above
5. Place of purchese:
(a) Retailer (b) Kirana shop (c) Home Delivery
(d) Whole seller (e) Road side vendor (f) Any other Pls. Specify ____________
6. Purpose of Usage:
(a) Drinking (b) Tea or Coffee (c) Sweets
(d) Health drinks (e) All the above (f) Any other Pls. Specify ____________
7 Reasons for purchasing the above brand:
(a) Taste (b) Quality (c) Price
(d) Availability (e) Any other Pls. Specify _____________
8. What is your perception regarding Vijaya milk quality?
(a) Excellent (b) Good (c) Average
(d) Below Average (e) Poor

42
9. Do you find any problems in vijaya milk delivery?
(a) Packaging (b) Difference in Quantity (c) Difference in Quality
(d) Availability (e) Any other Pls. Specify _____________

10. Do you receive vijaya milk promptly without delay?

Yes No

11. Are you satisfied with the price of vijaya milk?

(a) Yes (b) No (c) Can’t say

12. Can you name other milk products available under vijaya brand?
______________________________________________
13. According to you, who is the major competitor vijaya dairy milk?
______________________________________________
14. How did you come to know about vijaya milk?
(a) By friend (b) By relatives (c) By advertisement
(d) By milk boy / vendor (e) By family members (f) Any other Pls. specify

15. Do you remember the tag line of Vijaya brand milk?

Yes No

16. Any comments / suggestions on Milk

_____________________________________________________________________________
_________________________________________________________________

43
 BIBLIOGRAPHY

AUTHOR NAME TITLE OF THE BOOK

1)Philip Kotler & Kevin Keller : Marketing Management

2) Suja .R. Nair, : Consumer Behaviour

3) Tapan K Panda : Building Brands

4) Harsh V Verma : Brand Management

5) C. R. Kothari : Research Methodology.

6) C.MADHAN MOHAN : Dairy Management.

7) M.K RAMPAL & S.L. GUPTHA : Project Report Writing.

44