INTRODUCTION

The value of milk and milk products for physical development and well being of

people is universally recognized. There was a rapid demand for the milk and its products

particularly in urban areas where these products were not produced in large quantity. In

Andhra Pradesh the program of dairy industry was initially mooted with the milk producers

have been faced with a lot of problems on the process of production and marketing of milk

namely improper transport facility, poor technology, absence of organized system of

processing marketing and pricing. To handle all these problems the government of Andhra

Pradesh has viewed to constitute “Dairy Development Corporation”.

The main aim to constitute Dairy Development Corporation is to safe guard the

interest of milk producers and ensuring adequate supply of milk at reasonable price to the

urban consumers. As a result, the A.P.D.D.C.F came into existence on 2 nd April 1974. India

with a vast population has great problem in providing every one with adequate food, both in

terms of quality and quantity.

Most of the regions in the country are facing a critical problem i.e., lack of adequate

nutrition. Nutrition and malnutrition products as the most important source of nourishment

one of the advantages is that with the dairy industry is providing employment opportunities,

income to the economy and supplying of qualitative milk and milk products to the country.

Dairy farming one a subsidiary occupation and a means of bare subsistence in rural

areas is now an important agro business. The very essential and important aspect is that to

develop diary industry for overcoming the problems of income, unemployment and nutrition

in the country.

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 NEED OF THE STUDY

Visakha dairy has a very good image of supplying good quality of milk at reasonable price

to the consumers. It has a hugged turnover and profits and some other reason gave birth to

many privates dairies .As Visakha dairy occupies a very important place in our state , a

survey is made to know about the consumer awareness there , attitudes toward all the dairy

products.

The purpose of production is consumption and one’s own purpose will be served only if the

consumer interests are attended to quality of service rendered by VISAKHA DAIRY ensures

the organization regarding customer satisfaction in their product. The aim of this study is to

provide an insight into the characteristics of the consumer markets, identify the possible

source of dissatisfaction, work toward handing complaints from consumer, which in turn help

in enhancing customer satisfaction and prevent dissatisfaction.

Keeping in view, the private dairies operation in tuni and payakaraopets milk market a

thorough study is also made to know about the distribution of the products on Visakha dairy.

Which include a study of various factors includes process, quality, availability, packaging,

taste usage time and so on…..

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 SCOPE OF THE STUDY

The present study have been undertaken to study and find out
effectiveness of Distribution channels in vishaka dairy. To find out the practical
difficulties involved in distribution and supply that can be evaluated through this
study, the study can be used to bring out solution for the problem faced by the
employees and dealers. The study will be able to throw light on the dark spots
where it need some sort of improvement in welfare facilities that have been
implementing by the company. The purpose of the study is to measure the
consumer’s attitude and dealers regarding the products provided by the company.
In this project work I have covered 102 consumers and retailers.

The suggestions and recommendations are also given at the end of

the report. The result of the study helps the management to know about their
brand demand and feedback of consumers and reatailers towards their products.

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 OBJECTIVES OF THE STUDY

This study was conducted with an objective of getting an insight of present market share

achieved and steps taken to maintain it tuni and in adjacent areas. This study emphasize on

the market strategy developed in order to meet the developing challenge in the market

another important objective of this study conduct is to know and understand the penetration

of Visakha dairy in tuni and the suburbs as compared to others.

 To study the channels of distribution towards Visakha dairy milk and its products.

 To find out the product wise demand toward Visakha dairy milk products.

 To identify the features that influences the customer for selecting their vishaka dairy milk.

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 To study about company profile and industrial profile with respect to dairy industry

 To offer suggestions of any, in further reinforcing the company profile of vishaka dairy,

Vishakhapatnam

RESEARCH METHODOLOGY

Sample size: 150 (distribution are taken as the sample)but only 102 are considered.

Sampling technique: survey

Fact expressed in quantitative from can be termed as “data”. Data may be classified either as

“primary data” or “secondary data”

Primary data:

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 The primary data is the data that is generated by the researcher for the specific

purpose of research situation at hand. It is the first hand information that researcher gets from

various source like respondents, analogues case situation and research experiments or

The primary data has been collected from the respondents with the and of questionnaire.

Secondary data:

Secondary data are already published data collected from some purpose other than

one confronting the researcher at a given point of time. the secondary data can be gathered

from various sources like books, journal, research agencies etc.. In this case the secondary

information was collected from newspaper like “business line” and “business magazines like

“business today” and “internet”.

LIMITATIONS

In spite of honest and sincere efforts by the researched there are bound to be certain

discrepancies and inconsistencies, again there were several limitation both statistical and non

statistical within which there research has been carried out. Some of the limitations felt and

faced are;

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 The major limitation in this research study is lack of co-operation from few department heads

due to probably lack of time and covid19

 Some of the finding have been taken in the research are based on opinion, attitudes, feelings,

and perceptions its few respondents .so we cannot take for granted the opinions and

presumption of the entire consumer

 Due to covid 19, information about sales, turnover, milk production so on were not provided

by the management from duration 2020-21.

 It was very difficult to generalize the main finding as the sample size was very small.

 The research had to visit number of times to obtain required data

INTRODUCTION

Milk is the food, which contains vitamins, proteins, fats and carbohydrates. Every

human being consumes milk at one time or more. World Health Organization suggests that

7
the infants should be fed compulsorily with mother milk, because it provides all the necessary

fats, proteins, etc., which is essential for the growth of the baby. If mother feed is not

available they suggest animal milk, this shows what major role milk is laying in our daily

life. 

HISTORY

Dairy farming has been part of agriculture for thousands of years. Historically it has

been one part of small, diverse farms. In the last century or so larger farms doing only dairy

production has emerged. Large scale dairy farming is only viable where either a large amount

of milk is required for production of more durable dairy products such as cheese, or there is a

substantial market of people with cash to buy milk, but no cows of their own.

HAND-MILKING

Centralized dairy farming as we understand it primarily developed around villages

and cities, where residents were unable to have cows of their own due to a lack of grazing

land. Near the town, farmers could make some extra money on the side by having additional

animals and selling the milk in town. The dairy farmers would fill barrels with milk in the

morning and bring it to market on a wagon.

Until the late 1800s, the milking of the cow was done by hand. In the United States,

several large dairy operations existed in some northeastern states and in the west that

involved as many as several hundred cows, but an individual milker could not be expected to

milk more than a dozen cows a day. Smaller operations predominated.

VACCUM BUCKET MILKING

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 The first milking machines were an extension of the traditional milk pail. The early

milker device fit on top of a regular milk pail and sat on the floor under the cow. Following

each cow being milked, the bucket would be dumped into a holding tank. This developed into

the Surge hanging milker. Prior to milking a cow, a large wide leather strap called a surcingle

was put around the cow, across the cow's lower back. The milker device and collection tank

hung underneath the cow from the strap. This innovation allowed the cow to move around

naturally during the milking process rather than having to stand perfectly still over a bucket

on the floor.

STEP SAVER MILK TRANSPORT

As herd size began to increase, the bucket milker system became laborious. A vacuum
milk-transport system known as the Step-Saver was developed to transport milk to the
storage tank. The system used a long vacuum hose coiled around a receiver cart, and
connected to a vacuum-breaker device in the milk house, allowing farmers to milk many
cows without the necessity of walking increasingly longer distances carrying heavy buckets
of milk.

MILKING PIPELINE

The next innovation in automatic milking was the milk pipeline. This uses a

permanent milk-return pipe and a second vacuum pipe that encircles the barn or milking

parlor above the rows of cows, with quick-seal entry ports above each cow. By eliminating

the need for the milk container, the milking device shrank in size and weight to the point

where it could hang under the cow, held up only by the sucking force of the milker nipples on

the cow's udder. The milk is pulled up into the milk-return pipe by the vacuum system, and

then flows by gravity to the milk house vacuum-breaker that puts the milk in the storage tank.

The pipeline system greatly reduced the physical labor of milking since the farmer no longer

needed to carry around huge heavy buckets of milk from each cow. The pipeline allowed

barn length to keep increasing and expanding.

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MILKING PARLOURS

Innovation in milking focused on mechanizing the milking parlor to maximize

throughput of cows per operator which streamlined the milking process to permit cows to be

milked as if on an assembly line, and to reduce physical stresses on the farmer by putting the

cows on a platform slightly above the person milking the cows to eliminate having to

constantly bend over. Many older and smaller farms still have tie-stall or stanchion barns, but

worldwide a majority of commercial farms have parlors.

The milking parlor allowed a concentration of money into a small area, so that more

technical monitoring and measuring equipment could be devoted to each milking station in

the parlor. Rather than simply milking into a common pipeline for example, the parlor can be

equipped with fixed measurement systems that monitor milk volume and record milking

statistics for each animal.

HISTORY OF MILK PRESERVATION METHODS

Keeping milk cool helps preserve it. The naturally cold underground water would be

continuously pumped into a tub or other containers of milk set in the tub to cool after

milking. This method of milk cooling was extremely popular before the arrival of electricity

and refrigeration.

When refrigeration first arrived (the 19th century), the equipment was fairly small and

did not have the ability to rapidly cool the large volume of milk that was entering the storage

tank in a short period of time. This problem was resolved through the development of the ice

bank. This is a double-walled tank design where water and cooling coils fill the space

underneath and around the milk tank above.

All day long, the small compressor and cooling system slowly draws heat out of the

water, while a second pump continuously circulates the water around the coils. Ice eventually

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builds up around the coils, until it reaches a thickness of about three inches surrounding each

pipe, and the cooling system shuts off. When the milking operation starts only the milk

agitator and the water circulation pump blowing water across the ice and the steel walls of the

tank are needed to rapidly reduce the incoming milk to a temperature below 40 degrees. But

because the ice is not permitted to build up until it touches the milk storage tank, the milk

does not get cold enough to also freeze.

This cooling method worked well for smaller dairies up to about 40 cows, but for

large numbers of animals a better system was needed to rapidly cool the incoming warm

milk. This is usually done using a device known as a plate chiller, which is a heat exchanger.

Alternating stainless steel plates cause the milk to flow in a thin sheet across the plates, while

cold water is circulated in a thin sheet on the other side of the plates.

Flattening out the milk flow permits quick. Even cooling for all the milk, compared to

a round tube where the center core does not cool as rapidly as the walls. The plate chiller has

high cooling demands, and for many farms this involves a step back into the past, back to the

days of windmills and milk-can cooling, except now a large volume of naturally cold

underground water is continuously streamed through the plate chiller to quickly bring the

milk down to the temperature of the underground water at about 50 °F (10 °C). The water is

usually not just dumped back into the ground again, but reused for washing and other

purposes.

But the milk still is not as cold as it needs to be, so the milk storage tank is still used
to do further cooling, to bring the milk down to 40 degrees. But with the development of
high-power 3-phase electrical service, ice-bank chillers are typically no longer used. Instead
the milk storage tank is a direct-cooling system with cooling coils embedded in the walls of
the tank that quickly pull the heat out and dump it across a large array of possibly several
different high-horsepower compressors and condensing units. Once the milk has achieved
40 °F (4 °C) after milking is finished, only one or two cooling units need to run occasionally
to maintain the correct temperature.

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 DAIRY INDUSTRY IN INDIA

The dairy industry is emerging as a sunrise industry. India is the world’s largest and

fast growing markets, for milk and milk products.

India has become the largest milk producer in the world, beside to the U.S .

Dairy industry profile:

a) Population: 300 million (250million dairy plants).

b) Milk production: 187.7 million tones

c) Average annual growth: 6.64% rate (till 2020)

d) Per capita milk availability: 394g/day or 78 kg /year

In spite of rapid strides made in increasing the milk production .the per capita availability

would be very low at 394 grams per day. To meet the demand for the growing population

there is great need to increase the milk production in India than the projected growth rate of

5percentage per year.

Products in dairy sector

Milk, Flavoured Milk, UHT Milk, Goat Milk, Camel Milk, A2 Milk, Organic Milk, Curd,

Probiotic Products, Flavored & Frozen Yoghurt, Buttermilk, Lassi, Ghee, Butter, Cheese,

Paneer, Cream, Khoya, Dairy Whiteners, Skimmed Milk Powder, Ice Cream, Sweet

Condensed Milk, Dairy Sweets and Whey are the different products in the dairy sector.

For years, the dairy industry was focussed only on cow and buffalo milk and milk-based

products. Rising Internet penetration and increasing consumer awareness have, however,

upended this long-standing norm. Today, consumers are increasingly inclined towards better,

healthier alternatives such as camel milk, goat milk or donkey milk. For instance, it has

become common knowledge that camel milk does not contain A1 casein and beta-lacto

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globulin, which makes it fit to be consumed by those suffering from milk allergies and people

who are lactose- intolerant. Camel milk is also gaining popularity since it aids digestion,

improves gut health, may prevent high blood pressure and may even help ease the symptoms

of autism in children. Further, goat and donkey milk are also gaining favour among health

enthusiasts as they are light on the stomach and packed with essential nutrients.

Niche dairy products such as flavoured camel milk powder, camel milk-based skin care

products or goat milk ghee will definitely attract more consumers in 2020. 

Ancient times v/s Present scenario:

Milk and milk products have been a part of society for most of human history. Regional

cuisines from all across the country use dairy to c

reate a variety of dishes for all sorts of occasions. Chai and coffee are integral part of our

nations morning and evening routines. The dairy has been in use since prehistoric times. In

India, the presence of remnants of cows and goats in excavation sites suggest that dairy may

have been in use at least since the Harappan Civilisation (33001300 BCE). In (10001500 CE)

dairy-production was still in its nascent stages around this time as the distribution was

restricted by socioeconomic status, geographical availability, and cultural preferences.

Some tribal folk considered dairy to be bad for their bodies; their consumption of dairy

was nil. In (160020th Century) around the time that the British arrived to begin their colonial

rule, dairy production had become less sporadic and had spread across the nation. By this

time, local unorganized cottage industries emerged across towns and villages. They were also

introduced to a beverage that would arguably change daily-routines forever. Tea was

consumed for medicinal purposes by tribes in north-east India” and was never considered the

beverage that it is today. 

Current Scenario

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The White Revolution in India started in 1970 with the organising of small holder dairy farms

under a three-tier co-operative system for organised production, procurement, processing and

marketing of milk. It was implemented in three phases: 1970-81, 1981-85 and 1985-2000.

The consumption pattern of dairy products in India is quite unique as compared to some of

the Western countries. It has been noticed that Indian consumers are increasingly getting

health- conscious and that the value-added dairy products industry is seeing a marginal

growth. A change in consumer mindsets has led to various changes. Lifestyle alterations have

led to an increase in the demand for value-added dairy products as compared to just the base

product, liquid milk. As the spending capacity of Indians is increasing, so is their willingness

to buy healthier, super foods which we like to call as value-added products. Value-added

products in the dairy industry are products like cheese, paneer, ghee, yoghurt, probiotic

drinks etc.There is a strong increase in the demand for milk in India, partly due to the

growing number of inhabitants. People are more attracted towards healthy food in one pack

which can be fulfilled by the dairy products. The country is expected to count 1.5 billion

inhabitants by 2035. 

Economic

The Indian dairy industry has grown consistently ever since the White Revolution of the

1970s, making India, the world’s largest producer of milk with 17% global share. With an

annual production of 146 million tones of milk India generates approximately US$70 billion

of revenue.

As of 2018, India is the leading milk producing country in the world, accounting for ~19% of

the global market share. The milk processing industry in India is expected to expand at a

compound annual growth rate (CAGR) of ~14.8% between FY 2018 and FY 2023, and will

reach Rs 2,458.7 bn in FY 2023.

Being one of the primary dairy consumables in India, the increased demand for milk in

the country is owed to the increasing population. As of FY 2018, ~81.1% of the Indian dairy

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and milk processing market was part of the unorganised sector, which produces milk in

unhygienic environments. This reduces the overall quality and nutrition levels of the milk

produced.

State-wise segment insights

Uttar Pradesh, Rajasthan and Gujarat have been the major milk producing states in India.

Uttar Pradesh is the largest dairy and milk-producing state because it is home to the highest

buffalo population and the second-highest cattle population in the country. The majority of

rural population in the state is engaged in livestock rearing and dairying. Gujarat has

numerous cooperative dairy milk unions, private dairy plants, and primary milk cooperative

societies, which play crucial role in the production of milk in the state.

Value-added-product wise insight

Apart from milk, the revenue of the Indian dairy and milk processing industry is

generated from several value-added products such as butter, curd, paneer, ghee, whey,

flavoured milk, ultra-high temperature (UHT) milk, cheese, and yogurt. During the period FY

2016 to FY 2020, the market size of butter is expected to grow by 14.5%, curd by 14.4%,

paneer by 14.1% and ghee by 14.1%, among others.

Export-Import

From India, the export of dairy products has increased to countries like Bhutan,

Afghanistan, Canada, Egypt and the United Arab Emirates. India has also imported a

significant amount of dairy products from countries like France, New Zealand, Ireland,

Ukraine and Italy.

Key growth drivers of the market

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 India's livestock sector is regarded as one of the largest in the world with a bovine

population of 299.9 mn, which comprises of cattle, buffalo and yak. The growth of the Indian

dairy and milk processing market is ensured by the steady supply of milk which is the

primary raw material for this industry.

Key deterrents to the growth of the market

Despite having a significant livestock base of milk animals, India lacks in terms of

availability of cold storages which results in wastage of dairy output. Thus, the lack of

sufficient storage facilities and inefficient distribution are hampering the growth of the Indian

dairy and milk processing industry.

Recurring droughts and floods affect the production of fodder in India. Sufficient

quantities of feed and fodder are required for proper animal rearing and milk production.

Lack of proper feed and fodder for milk animals, due to high usage of agricultural crop

residues by producers of fibreboard, paper and liquid fuels, affect its availability for dairy

production and milk processing.

 INTERNATIONAL SCENARIO OF DAIRY INDUSTRY 

LIQUID MILK MARKET 

        Average 14 billion litres of milk was produced every year in UK, 223 billion pounds in

USA and India’s production is around 187 million metric tons. Half of the total production of

milk is used for manufacturing other products. In UK the liquid milk sales has seen a decline

since the previous 10 years. 

      Since 2000 more than 90% of milk was purchased from the milkman. By 2010 this

declined to 89%, in 2011 to 81.9%, in 2012 to 68.3% and by 2013 delivery accounted for

44.5% of all milk purchased. Sales in supermarkets and small shops increased in relation to

the decline in doorstep share.

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CONTAINERS: 

        36% of all the house hold milk sold in England, Scotland and Wales is sold in glass

bottles, with plastic containers claming 50% of the market and cartons the remaining 14%.

Virtually all milk sold in glass bottles is sold in doorstep delivery while disposable packaging

accounts for almost all shop sales. Major types of milk available internationally are  

S.no Type of milk Energy value (calories) Fat content (%)

1 Whole milk 487 6.0
2 Toned milk 387 3.0
3 Low fat milk 270 1.0
4 Skimmed milk 194 0.1
5 Homogenized milk  234 All fat is spread evenly
 

INDIAN SCENARIO OF DAIRY INDUSTRY 

       The main stay in Indian farmers has been agriculture and allied occupations, farm

animals especially cattle have been an integral part of rural India for thousands of years.

During the year 1920 military farms were established to supply adequate raw milk to the

stations. These were walls maintained and improved. 

      In 1946 the first farmer’s integrated dairy co-operative was established in kaira district as

Anand which later came to be known as “Amul”. Amul and Greater milk scheme set together

a faster pace of dairy developed with emphasis on developed techniques of processing and

marketing under Indian conditions. 

INSTITUTIONAL SUPPORT TO CO-OPERATIVE DAIRYING:

Indian Dairy Corporation: 

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      The Indian dairy corporation (IDC) was set up under companies act on 13th February

1970. It is a Government of India undertaking. The immediate need to setup IDC was to

handle the popularly known “operation flood”. 

India has emerged as the world’s top dairy nation with milk production crossing 75 million

tons in 1997-98. It is placed second in the milk production when compared to the USA. The

Indian dairy industry production is estimated to have risen from a low of 20 million tons to

75 million tons 

   Though our country has 25% of the total world agriculture animals, yet the production of

milk is only 6.5% of the world programme. India is the second largest populated country and

the consumption of milk is also high. In order to meet the requirements of the people the

operation flood programmed was developed.

In every 5 year plan emphasis is even given to agriculture also which includes farming,

dairying etc. In India the state in which the production milk is high in Gujarat. It is estimated

that the per capita consumption of every Indian is 118 grams but the minimum requirement

for good health is 210 grams per day. It is also estimated that the consumption would be

64.40 million tons in this year. Therefore, it is necessary to develop dairy farming in India. 

An Outlook on Growth of Dairy Sector and its Contribution to Indian Economy

The present research paper was carried out to assess the growth of dairy sector and its

contribution to Indian economy. The study is descriptive in nature and based on secondary

data which obtained from various secondary sources like Economic Survey, Ministry of

Finance, GoI; BAHS, Ministry of Agriculture, GoI and ISS Report, Directorate of Animal

and Veterinary Services, Government of Tamil Nadu. The basic statistical tools such as

percentage analysis and continuous annual growth rate were used. The results revealed that

the percentage change in bovine population of India and Tamil Nadu showed negative trend

18
over the period except during the year 2007. The annual compound growth rate for milk

production in India showed the increasing trend for the period 1983-84 to 1992-93 and was at

4.56 and was 5.44 for the period 2012-2013 to 2016-17. The annual compound growth rate

for milk production in Tamil Nadu for the period 1987-88 to 1996-97 was 2.77 and was 1.62

for the period 2007-2008 to 2016-2017. The value of output from dairy sector was more than

Rs. 549 billions and accounts for 67.69 per cent of the value of the livestock sector output in

the year 2015-16.

Animal husbandry is the most important economic activity in rural areas as livestock plays a

vital role in the economy. Over 90 per cent of the milk production comes from small farmers,

who are located in rural areas. Growing human population, increasing urbanisation, rising

domestic incomes and changing lifestyles in the country have led to increasing demand for

dairy products (Anita and John, 2001). The dairy sector stretches its hand to 150 million farm

households by providing nutritive food, supplementary income and productive employment

for family labour, mainly for women (Payal et al., 2018 and Rais  et al., 2007). Dairying is

also an important secondary source of income for millions of rural families. Indian dairying is

unique in more than one way, contributing about 5.3 per cent to India’s agricultural GDP

with milk as a leading agricultural produce of the country (Satish and Soumyakant, 2016).

During the post-independence period, the dairy sector showed increase in growth rate

(Ashish, 2017). This impressive growth effort speaks volumes about the co-coordinated

efforts of large number of milk producing farmers, scientists, planners, NGO’s and industry

in achieving self-sufficiency in milk production. The country is the world largest milk

producer, contributing 18.5% of the world’s total milk production (FAO, Agricultural

Outlook 2016-2025, Economic Survey 2015-16). It is the world’s largest consumer of dairy

products, consuming almost 100% of its own milk production. Dairy products are considered

as cheap and nutritious food to millions of people in India and is the only acceptable source

of animal protein for large vegetarian segment of Indian population (Amit and Monojit,

2015). In India, dairy sector helps in alleviating the poverty and unemployment status.

19
Livestock sector provides employment to 18 million people and nearly 70 per cent of them

are women (Ramesh et al., 2018). Further, dairy sector is the major source of income for an

estimated 27.6 million people. Among these, 65 to 70 per cent are small, marginal farmers

and land-less labor (Satish and Soumyakant, 2016). The dairy sector supports around 10

million members / farmers through one lakh cooperative societies existing in the country

(Amarja, 2013). Apart from employment generated by rearing of animals, the procurement of

milk and its processing also provides substantial employment. Further, Tamil Nadu

Cooperative Milk Producers‘ Federation Ltd  and its units have a work force of about 5,000

employees and gives employment to another 10,000 workers who are engaged in milk

procurement and technical input supply, etc. Dairy industry showed its impact on society,

increase in economic status of farmers, better infrastructure facilities, improved food aid

security and nutrition. The need for dairy products are increasing day to day life which in turn

made India to import dairy products though being as top producer of milk. With this

background, the study was attempted to assess the growth in dairy sector and its contribution

to Indian economy.

Materials and Methods                                                 

The present research paper is descriptive in nature and based on secondary data. The

secondary data has been obtained from various sources such as Economic Survey, Ministry of

Finance, Government of India; Basic Animal Husbandry Statistics (BAHS), Ministry of

Agriculture, Government of India and Integrated sample survey report, Directorate of Animal

and Veterinary services, Government of Tamil Nadu. To study the changes in the milk

production over a period of time, the growth rate analysis was carried out using the following

exponential function.

 Milk Production Trend in India

Dairy development is one of the important activities in livestock sector. The total milk

production in the country was at 17 million tonnes in the year 1950-51 and since then the

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production of milk continues to rise over the period. As can be observed in the graph, there is

a steady increase in production of milk and it reached 163.7 million tonnes in the year 2016-

17. The annual compound growth rate for the period 1983-84 to 1992-93 was 4.37 and was

4.01 for the period 1993-94 to 2002-2003 and was 4.64 for the period 2003-2004 to 2012-

2013 and was 5.61 for the period 2012-2013 to 2016-17. The per capita availability of milk

was 130 grams per day during the period 1950-51. There has been steady increase in per

capita availability of milk since then till 1980-81 with marginal fluctuations in the

intermittent periods. The per capita availability of milk in the year 2000-01 was 217 grams

per day from against 128 grams per day in the year 1980-81. Further there is a substantially

increasing trend has been observed in the per capita availability of milk from 2000-01 to

2016-17. As a result, the per capita availability of milk reached 352 grams per day in the year

2016-17. The reasons for the increase in the milk production was mainly due to operation

flood which connected rural production centres with urban consumption centres followed by

the liberalization policy which paved the way for the entry of private sectors in the dairy

industry.

Contribution of Dairy Sector to the National Economy

Milk contributes more than 60 per cent of the total livestock production and accounts for

nearly 67.69 per cent of the value of the output of the livestock sector’s contribution to the

21
national GDP. Likewise, Beef contributes 2.92 per cent of the value of the output of the

livestock sector’s contribution to the national GDP. The value of output from dairy sector

was more than Rs. 549 billion and accounts for 67.69 per cent of the value of the livestock

sector output in the year 2015-16.

Value of output from dairy sector – at current prices

Value of

Percentage Value of Output

Value of Milk Percentage share
share of Milk Beef from
Year group produced of Beef in
group in produced in Livestock
in Crores Livestock Sector
Livestock Sector Crores Sector in

Crores

2011-12 327767 67.19 11754 2.4 487751

2012-13 372228 65.88 14324 2.53 564937

2013-14 423150 65.48 16596 2.56 646178

2014-15 495841 66.78 20600 2.77 742414

2015-16 549587 67.69 23727 2.92 811847

2016-17 589898 68.08 25678 3.17 853323

2017-18 601234 69.87 26127 3.3 885678

2018-19 612348 70.12 28907 3.84 920876

2019-20 617852 70.09 30123 4.32 989838

Conclusion

Dairy sector has been recognized by the government as one of the growth engines of the

Indian economy. Growing human population, increasing urbanization, rising domestic

incomes and changing lifestyles in the country have led to increasing demand for livestock

22
products. Milk consumption is rising across the globe due to rising economic prosperity amid

the rising middle class together with growth in overall population and demographics, relative

cost advantage, evolution of fast-food chains leading to broader acceptability and with milk

and eggs being a high nutrition value, affordable and quality source of animal protein. To

improve the milk production and productivity of dairy animals, Central and State

Government took initiatives through implementation of various dairy development

programmes over the years. Provision of necessary infra structural facilities would provide

the necessary impetus for the dairy farmers to pursue value addition and dairy processing

activities and thereby increase their income by several times. Hence serious efforts should be

taken by the government to create these facilities gradually so as to capture the momentum.

CHALLENGES FACED BY DAIRY INDUSTRY DURING COVID-19

Dairy is a ubiquitous part of food palette in India, ever-present in both food service and

packaged goods, whether as an end product (such as milk or curd) or as a critical input for

products such as butter, cheese, and paneer. Given its intrinsic presence in our daily diet,

dairy is a microcosm of the food industry, with the preferences of dairy consumers largely

being influenced by the same trends affecting the broader food sector.

In the early days and months of the COVID-19 pandemic, the dairy industry faced challenges

—such as shifts in supply and demand. This supply-and-demand mismatch early on was

created by an abrupt shift in supply, from dairy farmers at village level to large co-operatives.

On the demand side, many producers and co-operatives were left without a market to sell

their products. This abrupt shift of the dairy market from procurement centres to retail outlets

overwhelmed distribution logistics in the short run. However, the industry ultimately

emerged intact thanks to adjustments such as supply chain simplification and operational

flexibility in the business model.

23
While nearly all dairy companies struggled to adjust to the new normal during the early

stages of the pandemic, most capitalized on increased retail demand through operational

flexibility.

The following three factors contributed to their success:

1. Manufacturing flexibility: Most of the surplus milk was converted to Skimmed Milk
powder, Butter and Cheese. This highlights the value of flexibility and how systems

could benefit from such adaptability in the future.

2. Collaboration across the supply chain: Producers, processors, packagers,

distributors, and retailers coordinated among themselves, as well as with local and

state authorities, to ensure products reached shelves on time ensuring the population

was able to get their favourite cup of tea all along the pandemic. Government also

played a major role to ensure no interruption happened in the essential commodity

supply chain.

3. Simplification of the product basket: Product rationalization characterized much of

the crisis. To meet increased demand, companies moved away from a historic focus

on variety of dairy products and moved toward the basics – milk, butter, and paneer.

COVID-19 has changed the world, but the fundamentals of dairy sector are just as relevant in

today's uncertain environment. This past year was challenging for many reasons, yet the dairy

industry showed its resilience. Focus on dairy farmers, processors and the consumer will reap

rewards for the sector in the coming times.

The government has also supported the sector with various schemes and initiatives:

 Government has extended the Dairy Processing and Infrastructure Development

Fund till 2022-23. This will focus on building an efficient milk procurement system

by setting up of processing and chilling infrastructure and installation of electronic

milk adulteration testing equipment at village level. The scheme envisages providing

24
 loan assistance to State Dairy Federations, District Milk Unions, Milk producers

companies, Multi State Cooperatives and NDDB subsidiaries across the country who

are termed as Eligible End Borrowers (EEBs). 

 The Animal Husbandry Infrastructure Development has been approved for

incentivizing investments by individual entrepreneurs, private companies, MSME,

Farmers Producers Organizations (FPOs) and Section 8 companies to establish (i) the

dairy processing and value addition infrastructure, (ii) meat processing and value

addition infrastructure and (iii) animal feed plant. The Animal Husbandry

Infrastructure Development is a central sector scheme under the Prime Minister’s

Atma Nirbhar Bharat Abhiyan stimulus package for incentivizing with budget

allocation of INR 15,000 crore. 

 Government has also approved the central sector scheme – Production Linked

Incentive Scheme for Food Processing Industry and the scheme focuses on dairy

products such as Mozzarella Cheese, Ice Cream, Milk-based beverage and Indian

traditional sweets. The central scheme has an outlay of INR 10,900 crore and will be

implemented over a six-year period from 2021-22 to 2026-27. It is a great initiative of

the government for the creation of global food manufacturing champions.

The pandemic marks a turning point for the dairy sector: new patterns of consumer and

business behaviour emerged at extraordinary speed during the pandemic. The level of

innovation in response to this crisis has been truly impressive in the dairy sector. Shift to

newer business models accelerated faster than many believed possible. Companies that

rapidly evolved themselves in response to the pandemic have done tremendously well and are

well poised to reap the benefits in future. 

MAJOR PLAYERS IN DAIRY INDUSTRY

25
Type : Co-Operative
Industry : Dairy
Founded : 1946
Headquarters : Anand
Key people : Chairman, Kaira District
Cooperative Milk Producers’
Union Limited (KDCMPUL)
Revenue : INR 38,550 crores
Employees : 1000 employees of marketing arm.
However, real poolConsist of 2.8 million milk
producers
Website : www.amul.com

Amul is the largest food brand in India and world’s largest

Pouched milk brand with an annual turnover of us Rs 38,550 crore.
(2019-20).

26
Thirumala Milk Products Private Limited is a leading dairy company in South India
established in the year 1996. Since then, Thirumala has been maintaining its position as a
fastest growing brand with presence in major states of India such as Tamil Nadu, Karnataka,
Andhra Pradesh, Telangana, Kerala, Madhya Pradesh, Uttar Pradesh, and West Bengal.
Today, Thirumala produces dairy products across nine state-of-the-art manufacturing plants
spread across southern states of India.

27
Heritage Foods Limited

The Heritage Foods Limited was founded by Mr. Nara Chandrababu Naidu in the year 1992,
which is one of the fastest growing Public Listed Companies in India, with two business
divisions - Dairy and Renewable Energy. The annual turnover of Heritage Foods stood at
INR 24,070 million in the financial year 2020-21.

Currently, Heritage's milk and milk products have a market presence in Andhra Pradesh,
Telangana, Karnataka, Kerala, Tamil Nadu, Maharastra, Odisha, NCR Delhi, Haryana,
Rajasthan, Uttarakhand & Uttar Pradesh.

In the year 1994, HFL went public and was oversubscribed 54 times. HFL shares are listed on
BSE (Stock Code: 519552) and NSE (Stock Code: HERITGFOOD)

28
 COMPANY PROFILE

Company Name : Sri VijayaVisakha Milk Producers Company Ltd (Visakha

Dairy)

Address : BHPV Post

Level of Office : Head Office

Phone No : (891) 2517230 2517290

Website : www.visakhadairy.com

Industry : Food Processing/ Beverages

City : Visakhapatnam

State : Andhra Pradesh

Pin : 530012

Total Turnover : 2000cr

No. of Employees : 2000& above

Sector : Private Sector

29
Profile of vishaka dairy:

Sri Vijaya Visakha Milk Producers Company Limited (Visakha Dairy) was established in the
year 1973 under Co-operative Societies Act and commissioned dairy plant at
Akkireddipalem, Visakhapatnam with 50,000 LPD handling capacity in the year 1977.

With the introduction of MACS Act in 1995 by A.P State Government, Visakha Dairy was
converted in to the said Act in the year 1999 and registered as "Sri Vijaya Visakha District
Milk Producers Mutually Aided Cooperative Union Ltd". To fulfil the growth aspirations
while retaining cooperative ideology as core principles of governance, Visakha Dairy got
converted into Producer Company with effect from 06 Jan 2006 under the name and style of
"Sri Vijaya Visakha Milk Producers Company Limited". This could be possible with the
initiative taken by Government of India to enable co-operatives grow & operate on
competitive platform, introduced Companies (Amendment) Act 2002, cooperative form of
enterprises known as Producer Companies to be registered under Part IXA of the Companies
Act 1956.

Visakha Dairy is one of the fastest growing Milk & Milk Products
Manufacturing Company having plants at Visakhapatnam and Rangampeta (EG) in Andhra
Pradesh. Both the plants are equipped with the State of the Art Technology and are ISO
22000:2018 certified. Presently both the plants have capacity to handle upto 9 Lakh litres per
day.

Visakha Dairy manufactures all variants of Dairy Products viz.

Fresh Milk, UHT, Yoghurt, Milk Shakes, Aseptic Flavoured Milk, Curd, Cream, Butter Milk,
Lassi, Dhood peda, Badam Burfi, Milk Cake, Mysore Pak, Kalakand, Mistidoi, Ghee, Panner,
Butter, SMP etc., and sold in Andhra Pradesh, Telangana, Orrissa and Chattisgarh markets.
Visakha Dairy introduced Haldi Milk & Dry Ginger Milk to boost immunity & health support
to fight Covid-19. Company crossed turnover of Rs.1400 crore in the year 2020 with CAGR
of 12%.

Established Training Centre and imparting training to farmers in the areas of clean milk
programme, Nutritional aspects, Fodder requirements and Animal Health Care. Attaching

30
importance to animal health, established 633 Veterinary Health Centres with required
infrastructure, staff and supplying the veterinary medicines at subsidy rates.

Necessary Infrastructure created to improve breed development thru

Artificial Insemination with successful cross breed semen imported from National Dairy
Development Board, Goushala. 10 Mobile Veterinary Service Vehicles equipped with
medicines accompanied by veterinary doctors extending services covering more than 25
villages every day.

Cattle feed plants with more than 400 MT per day capacity are supplying cattle feed to
farmers at subsidized rates.

To improve quality and reduce risk of spoilage, logistics,

constructed more than 100 Bulk Milk Cooling Centres covering every 10 kms radius with
total capacity of 900,000 litres.

Milk Powder Plant with capacity of 13MTPD was constructed

in the year 1998 to convert surplus milk into Skimmed Milk Powder in the flush season.

Constructed Aseptic Packing Station in the year 2001 with a

capacity of 30,000 litres per day for UHT milk production and expanded to 3.0 lakh litres per
day capacity in 2015. Visakha Dairy enjoys 10% market share in UHT Milk on pan India
basis. Visakha Dairy sells Milk, Cream, Milk Shakes, Flavoured Milk etc., in UHT segment.

To overcome power crisis and to utilise renewable energy sources, commissioned Solar
power plant in record time with a capacity of 1.65 MW capacity at Vizianagaram for captive
usage & supplying to APTRANSCO Grid.

Visakha Dairy is giving employment opportunity to more than 2000 employees including
contract labour.

Visakha Dairy thru its Milk Producers Employees Educational

Health and Medical Welfare Trust is extending Medical services to farmers and their families
at subsidised rates in the 400 bed Modern Hospital, apart from education to the farmer's
children, irrigation projects, culverts, kalyanamandapams, bridges, canals etc.

31
 Visakha Dairy is growing consistently and paying highest
procurement price to milk producers. Visakha Dairy aims procurement of 10 Lakh litres per
day and turnover of Rs.2000 crores by the year 2025.

BOARD OF DIRECTORS

Shri M.V .Ramana Shri .Suryanarayana

Shri.Satyanarayana Smt P.Ramakumari

32
 Shri Rmanababu Smt S.Ammalu

Shri S.G.B.Shankarrao
Shri S.V.V.Shankarrao

Shri S.Surya narayana Smt CH.Rajakumari

33
Shri R.Rama Krishna Shri K.Katamayya

CHAIRMAN

Shri ADARI TULASI RAO

VICE CHAIRMAN

Shri A.ANAND KUMAR

34
MANAGING DIRECTOR

Shri S.V.RAMANA

BACKGROUND

Vijaya Visakha Milk Producers Company Limited., [Visakha dairy], Visakhapatnam

in Andhra Pradesh, is having their procurement operations in Costal Andhra districts, Viz.,

Srikakulam, Vizianagaram, Visakhapatnam & in East Godavari and Sales operations across

India.

The dairy was started in the year 1973 with handling capacity of 10000 liters per day in

Visakhapatnam under cooperative act with milk procurement operations in 50 villages. Now

the Dairy is procuring the milk from 2744 villages in Costal Andhra areas by serving 2,

07,925 milk producers.

The Dairy was converted to mutually Aided Cooperative Act-1995 I the year 1999 as

'Srivijayavisakha District Milk producers Mutually Aided Cooperative Union' and the Dairy

was converted to Company Act-1956 with effect from 06-01-2006 as 'Sri Vijaya Visakha

Milk Producers Company Limited'. The Procurement and Production graph growth is

35
increasing year after year with more participation of the rural farmers. Now the Visakha

Dairy is one of the fastest growing Milk & Milk Products Manufacturing organizations.

At present we have total no. of 1600 Milk Booths, out of which 500 outlets are selling

milk and milk products round the clock. We are supplying milk and milk products in the

three districts of North Coastal Andhra viz., Srikakulam, Vizianagaram, Visakhapatnam,

Kakinada and Tuni also in East Godavari District. We are distributing milk through many

routes for a wider coverage and accessibility of the public. We have been doing all sorts of

sales promotion activities with innovative ideas for development of milk Last seven Years

Statistical Information of Procurement and Liquid Milk Sales.

2013-2014: 5,50,000 to 6,00,000 liters per day

2014-2015: 6,20,000 to 6,50,000 liters per day
2015-2016: 6,50,000 to 7,00,000 liters per day
2016-2017: 6,70,000 to 7,00,000 liters per day
2017-2018: 7,00,000 to 7,50,000 liters per day
2018-2019: 7,50,000 to 8,20,000 liters per day
2019-2020: 8,60,000 to 9,00,000 liters per day

Dairy Information
No. of Milk Chilling Centers 6
No. of Bulk Cooling Centers 100
No. of Feed Mixing Plants 2
Union Training Centers 1
No. of Societies 1353
No. of MPACs 2520
No. of Women Societies 67
No. of Producers in Societies 20156
No. of Women Members 42855
No. of Veterinary First Aid Centers 661
No. of Emergency veterinary Routes 19

36
MILK CHILLING CENTERS:
S. No Name of the center District Capacity
1 MCC narsipatnam Visakhapatnam 500000
2 MCC vizianagaram Vizinagaram 100000
3 MCC rambadrapuram Srikakulam 50000
4 MCC srikakulam Srikakulam 40000
5 MCC tune (lease) East godavari 10000
6 MCC kakinada (lease) East godavari 300000

MISSION : Visakha Dairy is not only concentrating on the farmer's cattle welfare but
more equally giving priority for the welfare of farmer families in different dynamics like....

• HEALTH

• EDUCATION

• SOCIO-ECONOMIC MEASURE

In this process Visakha Dairy Chairman established Welfare Trust in 1989 name as

Milk Producers and Employee's Education Health and Medical Welfare Trust (MP & EEH &

MW Trust).

The main aim of the Trust is to extend Medical Health and Educational facilities

particularly to farmers and their families. In this direction the trust has established a modern

hospital fully equipped with the latest technology and employed specialist and super

specialists. Further, it has established schools and colleges for rural poor and farmer's

children.

The Trust's activities are being carried out in 8.25 acres of land in the vicinity of city

of Visakhapatnam. Various social welfare activities have been undertaken since its

establishment. These activities have been applauded by various Government officials, Chief

Ministers, Parliamentarians, Ministers and other Public Figures.

HEALTH:

37
 Krishi Trust Hospital is one of the most well equipped and best Medical Trust

Hospitals in the Green City of Visakhapatnam. The Hospital is a 100 bedded modern multi -

specialty cum critical care referral hospital. To give the patient best care round the clock, the

hospital is fully infrastructure with Hi-Tech equipment of world class quality to provide best

medical care. Krishi Trust Hospital is situated in a quiet and serene place in Sheelanagar

away from the noise and pollution of the city.

EDUCATION:

Trust provides the residential educational facility with subsidized rates for Visakha

dairy milk producers and employee’s children’s & general public also. It provides free

education to orphans recommended by the local village heads as well as to children who are

below poverty level.

Providing Education from Primary Level to Junior College & Nursing Collage.

Computer education is provided from 3rd class onwards. We have Residential facility for 300

Students.

We believe in value based education, our teacher student ratio is 1:25 in true spirit.

Our students are disciplined and hard working, so every year the school gets good results in

the general public exams. Our aim is to impart qualitative education.

There is a well equipped Laboratory, Library, and Multi Media Computer Lab. We

have a playground with sports facilities. Our Students are selected for national sports, and

sports academy in Andhra Pradesh

SOCIO-ECONOMIC MEASURES:

38
 Various social welfare activities have been taken up by the Trust. Among the other

activities, the Trust has provided drinking water to rural poor by digging Bore Wells in

villages and arranging water channels for farmers by digging old and new reservoirs, and also

constructed bridges on rivers, where crossing rivers were impossible for rural people in rainy

season.

Major task of the Trust is identifying, training, providing employment to weaker

sections that are not having any support from the society. Hither the Trust has provided

employment directly and indirectly to 300 people.

Providing Employment to Physically Handicapped, every Year by conducting

interviews with cooperation of Visakha dairy. Providing employment to women, who are

physically abused by their family and who have no other source of living.

ORGANISATIONAL STRUCTURE:

Organizational structure mainly refers to the relationship among the various Positions

that must work together to fulfill certain routes.

The Visakha Dairy has a centralized organization structure with a good

communication system .There is immediate feedback at every stage. Chairman, Board of

Directors, general Manager, Sr.Manager, Manager, Jr.Manager and Supervisory staff, leads

organizational setup in Vishaka Dairy.

39
 ORGANISATION CHART OF VISAKHA DAIRY

Board of Management

Field Plants Marketing Finance Personal Mis Civil

operation project accounting project

Production Engineering & Adanced ps Quality Dispatch

maintenance control

40
MARKETING DEPARTMENT

Marketing department in any organization plays a vital role Vishaka Diary is having

efficient Marketing department as

• The first and foremost job of the Marketing personnel is Identification of

consumers, of their products .This can be done through Market surveys.

• Along with identification of the customers, the Marketing Personnel has

to identify the needs of the customers i.e. what are the features, quality and sizes,

price are expected from the product.

• Next important function is the generation of the Business .This function can be

done by educating the buyers about various features and advantages of the Dairy

products as compared to completion products and explain the cost benefits and

qualities at the product .This can be done through using various sales promotion tools

such as discount coupons, promotional letters and advertising through various media

and through direct Marketing.

• The next task of the Marketing Dept is to supply the product accurately at right

time.

Size of the market:

The size of the Milk Market is very wide. Presently the Milk is available in various

brands in the market. The Dairy's Milk is having a market share of 75% by maintaining good

quality and cost when compared to other competitor's products

41
Market Segmentation:

People living in the different places may vary in their buying nature of the same

product. The dairy segmenting the Milk Market by selling mixed Milk* only in Srikakulam

and toned whole milk in all of its market.

Marketing Information

Vishaka Dairy has appointed efficient marketing personnel for collecting all the

marketing of its products and its competitor's Products.

Product development:

Product development is the important task of dairy .The Dairy will watch the day by

day development in Milk market and make necessary change in its product mix to meet the

requirement of the buyers. The development may be related to the quality, size .Features

packing of existing products (or) the development of new product .In this process, Vishaka

Dairy recently developed skimmed Milk powder, which was introduced in the market with

Visakha Dairy Brand name.

Category of Products:

Vishaka Dairy products were categorized into two types

i) Milk ii) Milk Products.

Government policies and Legislation's:

The government has been supporting the Vishaka Dairy through many ways. The

Government did not levy any taxes on the Milk sales. But other products were levied

taxes as per Government norms and legislation.

42
Distribution Policies:

Vishaka Dairy adopted various distribution policies in order to increase the

availability of Milk to the consumers. Through wide distribution network, the Dairy

is experiencing a great response in its sales than its Competitors. The major

distribution channels that the firm has taken up are:

a) Sales through parlours and Milk sales pointer

b) Direct Sales to Buyers who are buying the Milk in large quantities such as

hostels, large hotels etc.

c) Direct supply to other states such as Orissa and West Bengal by engaging the

private and company tankers through both Rail and Road transportation.

The dairy is using private vehicles for supplying its products to Milk sales points

and parlours, which are in three districts Visakhapatnam, Vizianagaram,

Srikakulam.Visakha Dairy giving incentives / commission to the parlours & agents

as 3.1% on the M.R.P. per the below products, etc.

Market share:

At present Visakha dairy is having a market share of about 75%.

PRODUCTION PLANNING:

Production planning is one of the main functions of the production department. It can

be done under the production manager. The function of production planning involves the

decision of when, what, how and how much to produce goods.

Production Control:

Once the plans for production are prepared, the next task is to control the production.

This is essential in order to meet the demand for the product. Moreover the production

department maintains the quality of the products through following quality control by taking

43
the steps to minimize the effective work along the above functions. The production

department also controls the inventory and measure the amount of work done. The

production department of Visakha dairy following all the above production functions such as

maintaining good quality through quality control size of production, which is sufficient for

demand with demand production control and handling the materials in an efficient way,

which in turn reduces the production cost

Production process:

In Visakha dairy, the process of production starts with receiving of milk from various

societies. After receiving the milk, weight of milk (cow's as well as buffalo's milk) will be

measured along with its fat. Then the milk is to pasteurized i.e. cooling and heating.

The milk is cooled in chiller at a temperature between 6°C to 10°C. After chilling the

milk will be stored in three storage tanks of capacities of 55000 Ltrs, 70,000 Ltrs &80,000

liters.

This milk is then passed to balance tanks. Then the milk is passed to pasteurizer machine. In

pasteurizer, the milk will be heated first at 75 0C then at 450C and finally at a temperature

below 500 through three pasteurizers of capacity 7,000 liters per hour, 9,000 lph to 15,000

lph. Pasteurized milk will be stored in six storage tanks of different storage capacities like

55,000 Ltrs, 60,000 Ltrs,70,000 Ltrs, and 80,000 Ltrs. Finally the package section. The extra

fat will be removed from the milk before passing to the package section. This fat separation

can be done with fat separator. With this the cream will beeparated and passed to another

balanced tank and there it is pasteurized at temperature between 5°C to 7°C (cooling) and

will be heated between the temperatures of 82°C and 85°C. Then the cream will be stored at

cream storage tanks of capacity 5,000 liters of two tanks and another two tanks of capacity

3,000 liters. With this step the production process will be complete. Along with this

production process, the production department will supply the milk of required fat to various

44
sections, which are meant for making Doodh peda, Paneer, Butter Milk, sterilized flavored

milk, skim milk powder, Lassie UHT milk (Good milk), plain cova, milk cake, mysore pak,

kalakand, badam barfi, misti doi, and cream will be sent to Ghee manufacturing section.

Production capacity:

The present production capacity of the total plants is 9, 00,000 liters per day

Technology

Visaka dairy is using foreign technology in milk and other milk products production such as

using pasteurizers’ bulk coolers etc.

Research & Development:

Visakha dairy is always striving for new product development and also tries to develop

existing products. By the end of 2021 they want to produce 10,00,000liters of milk per day

Bulk cooling centers:

With a view to stand stiff in global competition, visakha union on the quality front

installed 74 bulk-cooling centers. Extension services are provided to educate and help the

milk producers in clean milk production, animal health and productivity.

S.no District Capacity

1 Visakhapatnam 42
2 Vizianagaram 18
3 Srikakulam 14
4 East Godavari 25

MAJOR PROJECTS:
Powder plant:

45
 As the recipients of milk exceeded the 2,00,000 liter per day capacity and the peak

procurement was reached to the level of 2,14,000 liter during the 1992,whereas the local

liquid milk sales in about sales in about 1,00,000 liter per day and in order to convert the

surplus milk into milk power, a milk power factory with a capacity of 13 MT per day with a

capacity outlay of Rs. 7.00 crores was constructed and started commissioning from may,

1998.

Uht plant/aseptic packing station:

With a view to diversity the product range for capturing the new market, the value

added premium, product of aseptic milk/flavored milk fruit juice packing, an aseptic

packaging station (UHT plant) was established.

Milk porch filling unit-II

As a present 2.00 lack liter of milk is being packed in pouches to meet the local

sales demand with considerable constrains. The existing milk cold storage capacity is

limited to the minimum capacity of 70000-lt.only .it is also required renovation. Keeping

in view of the future of the demand, it was proposed to strengthen the pouch filling

facilities to pack up to 2.50 lakh liters of milk per daywith sufficient milk cold store and

required refrigeration plant with an out lay of Rs.256 lakes

Procurement:

This union is procuring milk though a network of 800 primary milk producers co-operative

and 766 unregistered centers across three districts. The average dairy procurement of this

union during 2007-2008 is 5 lakhs .this is another vital activity implement with long vision to

improve the milk procurement a part from procuring the day available surplus.

STRENGTHS:

Vcd motives 70 year of the consumer of Visakhapatnam la consumer visakha milk.

46
Efficient procurement and physical distribution systems.Regular prompt and timely supply of

milk and milk products at its own parlour and retail outlets.

WEAKNESSESS:

1. Vcd is not able to meet the demand of the milk products due to less allowance of milk to

process the milk products.

2. in effective promotional activities arc less effect

PRODUCT DEVELOPMENT:

Product development is due of the important task of the dairy will watch the day-by-day

development in milk market necessary changes in its product mix to meet the requirement of

the buyers. The development may be relating to the quality,size, features, packing, or exiting

products the development of new product. In this process, visakha dairy recently developed

“good milk” which was introduced in the market with vijaya brand name.

Range of milk &milk products:

MILK : W.M- T.M, HTM-DTM (200ml, 500ml, 1000ml)

UHT MILK : 5Lts, 1Lts, 500ml.&200ml (DTM, TM, STM)

GHEE : 15kg.tins, 200ml,500ml & 1LT

Tetra S.F.M : chocolate, badam,pine apple .

BUTTER MILK : 200ml

LASSI : 200ml

CURD : 100grms, 200grms, 500gr; 1kg, 10kg.15kg

47
MISHTI DOI : 100grms;

PANEER : 200gr, 500gr, 1kg;

DOODH PEDA : 25gr, 250gr;

BURFI : 250gr.500gr:

MILK CAKE : 250gr, 500gr;

MYSOREPAK : 250gr, 500 gr

ICE CREAM : cup ice cream, cone ice cream.

Good milk :

Visakha dairy good milk to produce in tetra pack packages. It is health and fresh. Its packages
assure you complete nutrition protection. It some points are there.

1. Flash heat treated, which means 0% bacteria. It works like double pasteurization to
kill germs while preserving nutrition.
2. Freshness retained as milk is free from bacteria. Presence of bacteria, which feeds on
the nutrients of milk, affects freshness.
3. 100% pure. It’s no needed milk powder, preservative or chemicals.
4. Long shelf life, convenient to use any where any time. Special six layer packaging
protects the milk form harmful germs, air, and light. U.V. rays, to ensure that it stays
for 30 days (when not opened).
5. fortified with vitamins A & D.
Provides nutrients essential for good health.

6. Safe and nutritious particularly for children. As milk is nutrition protected. Bacteria
free and fortified with vitamin A & D.
7. Needs no refrigeration till pack is opened.
Once opened it need to be refrigerated and has the normal life of regular milk.

8. No boiling required. Ensures there is no nutrition loss right up to consumption.

48
Sales promotion activities:

As apart of sales promotion we are doing activities such as placement of hoardings

in important place, giving glow sign boards to retail outlets, wall paining at retail outlets,
as well as hop paintings, distributing banner and carry bags, press ads local cable
television as. FM radios advertising glow signboards distributing big size umbrellas,
conducting exhibition, trade shows, we are sponsoring some of the events where public
particulars are good. We are offering incentives to our commission agents as well as our
filed staff on achievement of targets.
1. Hoardings
2. Glow sign boards
3. Painting
1.wall paint
2.tea stall painting
3.structure painting
4. Banners flute boards
5. Garden umbrellas
6. Advertisements
a. Press advertisement
b.local cable ads
c.calender

49
 7.corporation film
8.gifts&incentives to door delivery persons
9.gifts&incentives to agents
10.glow signboards
11. FM radio advertisements
12. Online advertisements

Major projects:
Powder plant:
As the recipients of milk exceeded the 2,00,000 liter per day capacity and the peak
procurement was reached to the level of 2,14,000 liter during the 1992,whereas the local
liquid milk sales in about sales in about 1,00,000 liter per day and in order to convert the
surplus milk into milk power, a milk power factory with a capacity of 13 MT per day with
a capacity outlay of Rs. 7.00 crores was constructed and started commissioning from
may, 1998.

UHT plant/aseptic packing station:

With a view to diversity the product range for capturing the new market, the value added
premium, product of aseptic milk/flavored milk fruit juice packing, an aseptic packaging
station (UHT plant) was established.

Milk prochI filling unit-II

As a present 2.00 lack liter of milk is being packed in pouches to meet the local sales
demand with considerable constrains. The existing milk cold storage capacity is limited to
the minimum capacity of 70000-lt.only .it is also required renovation. Keeping in view of
the future of the demand, it was proposed to strengthen the pouch filling facilities to pack

50
 up to 2.50 lakh liters of milk per day with sufficient milk cold store and required
refrigeration plant with an out lay of Rs.256 lakes.
MAJOR HIGH LIGHTS OF VISAKHA DAIRY:

1. this union has established a welfare trust for the milk producer and employees for
education and heath. It constructed a school and junior college running with strength
of 872 studdent.

2. Constructed a 60 bedded hospital.

3. natural death welfare scheme for the milk producers

4. Implementing gopal raksha scheme for the welfare of cattle and milk producers.

5. Construction of small bridges on rivers and vaggus under janmabhoomi programs at

c.bhogapuram.p.p.agraharam and kailasapuram.

6. desilting of irrigation tanks by visakha dairy.

7. digging of bore \veils for drinking water for formers and their cattle.

8. Constructed reservoir at karaka village in butchayyapeta mandal under janmabhoomi

programme.

9. Construction of milk collection buildings under janmabhoomi programme,which is

major mile stone.

To wards conversion charges of the SMP. Basing on the above facts the circumstance lead to
established a milk powder factory with a capacity of 13 f’v ltrs per day at visakhaptnam with
a capital outlay of RS 7.00 crores.which was commissioned during mar 1998.

51
CHANNELS FOLLOWED BY VISAKHA DAIRY

WAREHOUSE

CHANNELS GIVEN BY VISAKHA DAIRY

52
 Distribution network:

Total no. Of routes: 36

Total no. Of booths: 1650
No. Of booths having refrigerators: 650
Total no. Of booths with iceboxes: 350
Roadside booths: 650

Parlors: 425
Mil products retail outlets: 1800

door delivery
reatailers

Channels of distribution
Personnel
a) Milk VCD wholesaler/ agent consumer

(Insulated vehicle/ordinary)

Autos

b) Milk products VCD stockiest retailer

53
 Consumer
(Insulated vehicles)

INPUTS FROM AGENTS

 At present around 30 to 35 milk booths comprises a single route and about 3

routes comprises a zone/city officer area.
 Each city office is monitored by a city in charge and under him the routes
supervisors and business development supervisors work.
 The division of marketing filed activity into city officer is providing to strengthen
the marketing activities on the whole and it helped in development of sales.
 Further meeting with the management organized routes wise and zone wise
regularly to develop them in terms of working capital management and inter
personal communication.
 They are encouraging the both agents with monetary and no-monetary benefits.
 Incentives are being passed on to the supervisors on achievement of targets.
Targets will be fixed @10% increased of the previous year particular month’s
sales.

54
 INTRODUCTION

Channel of distribution is the most powerful element among marketing mix

elements. The main function of this element is to find out appropriate ways through which

goods are made available to the markets. It is a managerial function and hence proper

decisions are to be taken in this matter before commercial production begins. This is so

because the efficiency of its channel of distribution is often what separates a successful firm

from an unsuccessful firm.

THEORETICAL CONCEPTS

55
 Marketing channels are the most complicated phenomena

encountered in the study of marketing. They encompass elaborate behavioral systems that

usually involve many decision makers and often extend over a wide geographical area. One

aspect of these systems is their constants interaction they lead, there follow, they control, they

conflict, they co-operate.

This might be the reason why Peter Ducker qualified this function

of marketing as a ‘Dark Continent’. In the past, this aspect had not received its due attention

and recognition in marketing planning since the distribution was not usually under taken by

the producers. Later on, the producers were facing certain ‘gaps’ in their distribution process

resulting in an imbalance between production and sales. They also understood that many a

product, which was intrinsically food, had dies in infancy because it literally never found the

right road to the market. The ‘gap’ was found out to be as follows.

1. Customers are usually scattered, where as production is concentrated in a few centers.

This may be treated as spatial gap. Transportation is used to cover up this gap and includes

all activities directly concerned with moving goods form the place of production to the place

consumption.

2. Customers make their purchases at regular intervals, where as production has to be

organized on continues process. This is a temporal gap. Inventory deals with these gaps.

This includes activities concerned with holding goods between the time of production and the

time of sale.

3. Manufacturers organize large-scale production to reap benefits of economies whereas

customers prefer to by only in small quantities. This would naturally create a gap to be called

perceptional gap. This gap is covered by promotional activities. They include giving of

percussive information and buyers re prompted at make quick repeal purchases.

4. Basically customers cannot have full information of producers and products available and

naturally this prevents free exchanges. This may be designated as transactional gap. This is

56
the most difficult gap to be filled up. This gap could be effectively covered only by proper

distribution arrangements.

The concept of distribution as a ‘gap’s only theoretical value. This approach fails to explain

planning and control aspects needed in ‘channel management’. For example, for one type of

product a particular channel would be ideal, but for another type an alternative channel may

be more suitable. In both cases ‘gap’ is the same but different approaches are necessary.

Again the channel selection end control might vary depending upon the nature of business.

Moreover, external environments condition distribution activities as the market is outside the

business. Above all, it should be noted that channels chooses for the company’s.

Products intimately affect every other marketing decision and they involve the firm in

relatively long-term commitments to other firms. For a consumer-oriented firm every

channel represents as customers and his needs and desires must be catered in full. The gap

approach therefore, would be of no value if the above factories were considered.

DEFINITION:

Every producer seeks to link together a set of marketing

intermediaries that fulfill the firm’s objective. This set of marketing intermediaries is called

the marketing channel. The American marketing association defined the term as “the

structure of introduced company organization units and extra company agents and dealers.

Whole wholesalers and retailer through which a product or service is marketed”.

The definition includes two aspects:

1. The firm’s internal marketing organization units and the outside business units, which a

firm uses in its marketing work.

2. The channel structure of the individual firm and the firm entire channel complex available

to all firms.

57
 The channel is also described as ‘a grouping of intermediaries

from first owner to the last owner, who take title to a product during the marketing processes.

The word”channel”has its origin in the French word used for

channel. Thus a channel is a medium through which goods are make to moves as smoothly as

possibly to the desired places. In other words, the route through which goods move from the

place of production to the place of consumption is termed as “channel of distribution”.

A.W.Shaw defined distribution as “as the application of motion to

materials as they move from the times, places, forms and conditions where they have value”.

The channel is therefore the vehicle for viewing marketing organization in its external aspects

and for bridging the physical and non-physical gaps, which exists in moving goods from

producers to consumers through the exchange process, including the determination of price.

The process of distribution encompasses the movement of goods

from the point of production, or from storage locations, along the channel of distribution.

The marketing function includes three elements.

1. The transportation of goods physical movement of goods or traffic management.

2. The location of goods storage.

3. The institutions facilitating the easy movement of goods.

The first two elements are discussed in detail in a previous chapter. The present chapter deals

with the third elements.

CHANNEL OBJECTIVES

There is, however, a misconception that channels are permanent

features of a company’s marketing activity. But this does not seem to be correct. Along with

the shifts in overall strategy of firm corresponding changes in channels system may be

58
necessary. In other words, existing trade channels are not a constraint in the design of

marketing strategy;, for this reason, channel decisions are included as a part of strategy rather

than as part of the; marketing organization. The channel objectives may be numerous

depending upon the marketing and corporate objectives. A few examples are mentioned

below:

1. Growth in sales by establishing distribution in new markets.

2. Improvements/maintenance of market share.

3. Creation of an efficient channel system.

CHANNEL FUNCTION:

In any developing economy there is an increasing emphasis on specialization and the division

of labor. As a result of this a ‘gap’ gets developed between producers and users. The

primary purpose of a distributive channel is to bridge this gap by; resolving spatial and

temporal discrepancies is supply and demand. For this irrespective of the extent of these

discrepancies, certain essential functions need to be performed. These are:

1. Transfer of title to the goods involved.

2. Physical movements from; the point of production to the point of consumption.

3. Storage function.

4. Communications of information concerning the availability, characteristics and price of the

goods in transit, inventory and on purchase.

5. Marketing creates various utilize4 to the products. Most of utmost these utilities are, in

fact, created by performing the functions of physical distribution promptly and efficiently.

Channels of distribution help to move goo9ds from one place to another hence, they add

place utility; they bring goods to the consumer when the consumer in a convenient shape,

59
unit, size, style and package, Hence they add convenience value. They make it poss9hbel for

the consumer to obt6qin goods at a price he is willing to pay, and under a conditions bring

him satisfaction and pride of ownership hence, they add possession value.

The important of this function varies depending upon the nature of

the goods themselves. For example transportation and storage tend to predominate in the

case of bulky raw materials such as coal, petroleum products and iron ore,

Where price and specifications are standardized and the market comprises a limited number

of buyers and sellers. As the complexity of the product increase3s, the prohibition of

information and product service becomes predominant, for example computers, automobiles

etc.min the case4 of consumer goods, advertising and sales promotion constitute the ;major

communication channel. Contrary to this, industrial goods depend more on personal selling,

owing to the more heterogeneous nature of the goods involved. Therefore, it is necessary to

consider the precise nature of the product and the seller-buyer relationship to determine their

relative importance.

PHYSICAL DISTRIBUTION AND CHANNELS OF DISTRIBUTION

If distribution could be treated ax whole function of marketing, then it could be split

into two components. Physical distribution and channels of distribution. It is found that

these two streams are used, sometimes interchangeably.

CHANNEL OF DISTRIBUTION

Channel of distribution refers, primarily, to the middle or intermediary marketing

institutions, which performs certain marketing function. More than performing the functions

these institutions try to gain access to the target market.

PHYSICAL DISTRIBUTION

60
 Physical distribution on the oh6er hand, concerns with material aspects of the flow

of goods to the consumers. It includes transportation, storage, warehousing, packing etc. it is

a technical function in the sense that it ensures availability of product at the right time , at the

right palace and in the right ;form. The term is used often in a broad sense to include

channels of distribution also

KINDS OF CHANNEL MEMBERS

The channel of distribution includes the original producer; the final buyer and any

middlemen wither wholesaler or retailer. The term middlemen refer to those institutions or

individual s in the channel, which either take to the goods or negotiate or sell in the capacity

of an agent or taken broker. Thus from the marketing point of view the middlemen and

intermediaries are the same. ON the same basis of taking title to goods these middlemen are

decided into merchant middlemen and agent middlemen, merchant middlemen, obviously

take a title and later affect sales on their own accord. Agent middlemen, on the contrary do

not take title to goods,. They simply get an order from the buyer and pass it on to the

producer and seller they are also known as “functional middlemen”. ON the basis of the

position of the middlemen in the chnbne4l of distribution, they are also classified into

wholelsalee5rs and retailers. Wholesalers are closer to the manufacturers while retailers have

a close touch with customers. The various kinds of middlemen are:

1. AGENTS:

The middlemen who do not take any title to goods. They take active part in

the marketing mechanism rendering all services required. They do not usually repr4esent

both the buyers and the seller in the same transaction. Ex: - Commission agents,

manufacturer’s agents, selling agents etc.

2. BROKERS:

Agents who do not have direct physical control of the goods in which they

deal. They represent either the buyer or the seller in negotiation purchases or sales for their

61
principal. The broker’s powers as to prices and terms of sale are usually by limited their

principals.

3. DEALERS:

Firms that buy or resell products t either retail or wholesale basis

4. DISTRIBUTORS:

It is a general term used to mean wholesalers.

5. JOBBERS:

This term is widely used as a synonym of wholesalers or distributors. The term

is also used in certain traders and localities to designate special types of wholesalers. They

are usually found in stock markets

6. RACK JOBBERS:

A Wholesaling business unit that markets specialized lines of merchandise to

certain types of retail stores and provides special services such as arrangement, maintenance

and stocking of products in display racks. The rack jobber, usually, but not always, put his

merchandise in the store of the retailer on consignment. Rack jobbers are more common in

the food business..

7. RESIDENT BUYER:

An agent or a person who specializes in buying on a fee or commission basis,

chiefly for retailers.

8. RETAILER:

A merchant, or occasionally an agent, whose business is selling directly to the

ultimate consumer.

62
9. WHOLESALER:

A business unit, which buys and resells merchandise to retailers and other

merchants and to industrial institution and commercial users but which does not sell in

significant amounts to ultimate consumers. Generally these merchants render a wide variety

of services to their customers. There are various kinds of wholesalers, such a distributors,

services wholesalers etc

10. COMMISION HOSUES:

There are also referred to as commission merchants. These agents usually exercise

physical control over and negotiate the sale of the goods they handle. The commission

houses usually enjoy broader powers over the prices, methods and items of sales than the

brokers but they are also bound to obey instructions issues by the principal. They generally

arrange delivery extend necessary credit, collects, deduct their fees and remit the balance to

the principal.

11. DISCOUNT HOUSES:

Discount houses is a retailing business units featuring durable consumer items,

competing on the basis of price appeal and operating on a relatively low mark-up and with a

minimum m of customer service.

12. BRANCH HOUSE:

It is an establishment maintained by a manufacturer detached from the head office

and used for the purposes of stocking, selling delivering and ser5vicing his product a branch

office is also similar to a branch house.

63
13. FACILITATING AGENCIES:

These agencies perform or assist in the per5formance of one or a number of

marketing function, but they neither take title to goods not negotiate purchase or sale.

Common types are banks, railways, warehouses, commodity exchanges, assurance etc.,

14. CONSUMER CO-OPERATIVE:

Tribute gods and services primarily to the member. Such societies are sometimes

referred to as purchase co/operative also.

15. INDUSTRIAL STORE:

A retail store owned and operated by a company to sell primarily to its

employees. Non/governmental establishment are often referred to as company stores

FUNCTIONS OF MIDDLEMEN

Nothing prevents a producer form meeting hi customers directly and effecting

sales. If a seller does not use this privilege then there must be certain unchallengeable

advantages. The advantages could be stated thus:

1. Many products do not have the resources to engage themselves in direct marketing.

2. Middlemen reduce transaction to an optimum number.

3. Middlemen are capable of eliminating discrepancies in quantity that is distributed. This is

done by breaking the bulk that is dividing a huge lot into small fractions.

4. Middlemen are capable of eliminating discrepancies in assortments. This happens when

different manufacturers produce a variety of items that become parts of another product or

each part is demanded separately as spares.

5. The producer can concentrate on the production function leaving the marketing problem to

the middlemen who specializes in the line.

64
6. The finance required for organizing marketing could profitably be used in production

where the rate of return would be greater.

7. The chief connection of selling intermediaries it to assemble to e goods from and many

producers in such a manner that a customer could affect purchase with ease. According to

Wore Alderson the goal of marketing is the catching of segments of supply and demand. The

matching process is undertaking by performing the following functions:

Contacting: Contacting purchasers or potential of the product.

Sorting: Buying a large number of products in large quantities and then dividing and

rearranvbing them into suitable combinations; for the buyer.

Stimulating demand: help to sell merchandise through personal selling and advertising

Maintaining inventory: Stocking of goods at all times closer to the plight of purchase.

Transmitting marketing information: X serves as conduct information flowing between

the market and the manufacturer.

IN short middleman, have to perform ‘connection’’ ‘Equalization’ and ‘dispersion’ functions

of marketing

8. Middleman collects huge orders and purchase products in bulk form the producers. This

enables a manufacture to undertake large-scale production.

9. The main function of middlemen is to provide the connecting link between the producers

and their respective markets.

10. Middleman helps to stabilize the price too. By stocking goods constant of gods to the

markets is assured. This equalizes demand and supply factors, which stabilizes prices not

only in a sign, single market but also maintains the same price level in all markets

65
11. Middlemen create place, time and possession utilities to the products.

Thus under the present complex system of production and distribution middlemen n appear to

the indispensable and inevitable. Industry and commerce are soil specialized these days that

the producers a cannot do full justice to every minute of production and distribution. For this

reason, they have some people specialized in the different adjuncts; of production and

distribution, so that their enterprise my may be crowned with success. If

There were no such specialized people; the producers would have to be; so busy with all

details of production and distribution they would hardly find any time to devote their

attention to the other vital requirements of business. This proportion becomes all the more

difficult in a competitive field where the question is of the ”Survival of the fittest” in short,

the services rendered by middlemen t to the producers and consumers in general are of

immense value…pa

CLASSIFICATION OF MIDDLEMEN

A few kinds of special middlemen occupying the trade channel were defined earlier in this

chapter. A proper classification and discussion is making hereto analyze their individual

position in the channel and their activities.

WHOLESALERS:

Wholesalers occupy a predominant position I the channels of distribution. This is more so in

a widespread economy, where the wholesaling function is of vital importance. They

assemble merchandise from many sources, warehouse4 it, and regroup the goods for

convenient buying by retailers. Sort modern wholesale merchants provide information and

advisory services to retailers, and they are often in a position to provide local market

information to manufacturers as well. Their most important services, of course is that of

marking it possible for the4 manufactures ;to sell ;to thousands of ;small ;retailers to whom

;the ;merchandise cannot to sold direct form ;the factory. This is more so because of their

66
lack of sources and storage space to purchase in larvae quantities to make such direct

purchase economically feasible. ON the basis of function they performed, wholesalers could

be groups as follows

1. Limited function wholesalers:

They are basically merchant wholesaler but do not provide fully service, and often provide

only; the minimum services among limited functions. Wholesalers of certain types stand out

and have become trade institutions, which are as follows:

a. Wagon or truck jobbers: as the name implies a wagon and truck jobber sells from his

wagon. His main contribution is that he covers wide rural territories and distributes perish;

able goods to small and often out-of-the –way retail customers.

B Rack Jobbers: these are wholesaling units that market specialized lines of merchandise to

certain types of stores only. They keep their merchandise in tracks, and the retail buyers are

allowed to get their for themselves. They concentrate mainly on food items and therefore, are

helpful for supermarkets.

c. Cash and carry jobbers: as the name suggests, the wholesalers do not allow any credit

facilities to retailers. Naturally, their operations are less costly and the price of products is

also low.

d Mail order wholesalers: these wholesalers sell through the medium of post. They were

necessary in times when transport and communication were under developed. With the

modern improvement in these fields their importance has considerably decreases.

2. GENERAL MERCHADISE WHOLESALERS:

Such a wholesaler never restricts the varieties of products to be handled. Hew may even

handle unrelated products lines. These kinds of middlemen are fast disappearing from the

city areas since all fields are gradualoly6 getting specialized.

67
3. GENERAL LINE WHOLESALERLS:

Contrary to the above kind of wholesalers, they deal in closely related items. IN industrial

goods marketing, these wholesalers are known as “Industrial distributors”. This kind of

wholesalers is found in hardware and automobile spare parts business.

Specialty wholesalers:

As the name suggests this kind of wholesalers have introduced specialization in the wholesale

trade. Such a wholesaler deals only in one merchandise. But within that limited line he

might offer the who le range also specialize in concentrating on the products of a single or a

special group of manufactures. This will enable him to get all support from manufacturers

including the sales promotional supports…pa

4. FUNCTIONAL WHOLESALERS/MIDDLEMEN

This kind of wholesalers actually falls under the category of agent middleman. They do not

take title to merchandise nor do they see goods they sell. Their main functions to facilitate

selling, although there are some buying functional middlemen. They are classified as:

a. Brokers: this group operates to bring the buyers and the seller together. Brokers are

especially important in the food, textile, and real estate and in second hand machinery

markets. Primarily, brokers sell information. Information of products available for sale or

purchase.

b. Drop-shipment wholesalers: through by nature they are also wholesalers, they; do not

handle the goods; they sell. They simply collect orders from retailers and pass them on to the

retailer such wholesaling functions, with the 0065ceptgion of storage and handling

c. Commission merchants: they ;are mostly found in the agricultural marketing field and

handle the selling function for large numbers ;of products Like the broke a commission

68
merchant finds markets for the products. But unlike; the broker, he generally handles the

goods he sells but does not own them,. Consequent on the emergence; of co-operative

marketing in the agricultural se4dtor in recent years, the importance of these merchants has

declined

d. Manufactures; agents: these; agents; wor4k for several; no competing manufacturers and

act as sales representatives for them in a territory,Their main job is to call on and sell to

wholesalers and industrial buyers. As a; rule, the manufactures and agent does not handle

goods. He sends the orders; to the; manufacturers who in turn deliver the; products directly;

to buyers.

f Selling agents: like the manufacturers agents willing agents sell for ;the manufacturers but

usually ;handle the entire output of such manufacturers. They take over the entire marketing

job for a commission. The selling agent prominent in the textile and drugs and

pharmaceutical industries, where many small producers have to sell products fast and at the

lowest possible cost.

a. Converters: they operate both as manufacturers and wholesalers. But their production

operation would be simple, concentrating more on selling. This is found in textile; industry6,

where the raw cotton is brought and after dyeing, printing etc.findshed cloth is sold. This

kind of wholesalers is rarely found in India.

b. Assemblers: their specification is in the agricultural field. Some are agent middlemen and

some are merchant middlemen, and in most cases they combine both the types. Their main

job is assembling goods from various places.

CHANNEL MANAGEMENT

69
The selection of marketing channel systems by manufacturers is one of the most critical

marketing decisions to be made. It is strategic decision. The objective of this strategic action

is to place the firm and its products into a market position which is very safe.

The channel decision has far-reaching consequences and even affects the manufacture’s mix.

For ex: the producer’s freedom of pricing is limited by the trade discount arranged with

resellers. His advertising and use of personal selling are influenced by the role of the

middlemen promoting his brands. Even the products features or its packing may be affected

buy the assortment of needs and merchandising policies of important sellers. Consequently

the channel decision represe4nts one of the; most important decisions a manufacturers must

make and therefore, a decision that deserves extensive analysis and careful planning.

Two basic goals are commonly pointed out:

1. The achievement of a sufficiently board product availability in the market. This would

assure ready exposure of the product to potential buyers.

2. The creation of uninterrupted trading relationships with the middlemen. These goods are

often described as long-range goal of channel management. On the basis of this short-run

channel objectives are established. They are,

A. Coverage of geographical markets to ensure prompt and quick delivery.

B. Coverage of important resellers this will ensure product availability over a wide

area.

C. Coverage of personal selling support.

D. Effective sales promotion.

CHANNEL OPTIONS:

70
The second stage in the channel management is to choose from among the various adoptions

available. The options are made on the basis of

1. The degree of directness or number of levels of middlemen to be in the channel.

2. The degree of selectivity number of middlemen required in a specified area.

3. The types of middlemen what types of wholesalers, retailers and facilitation middleman are

needed.

4. The number of separate distribution channels.

5. The choice of the individual middlemen.

As pointed out earlier channel decision is not permanent and requires constant evaluation,

improvements, changes and abolition of channel altogether; might become necessary in the

course of time. On the basis of the natur5e of products also, these channels may take

different forms. A common of general approach is neither feasible nor practicable.

A few practical hints on channel selection are given below:

1. In case where a manufacturer product are frequently purchases the best course for him

would be to adopt direct distribution.

2. Fashionable and perishable commodities usually must be placed in the hands of final

sellers as quickly as possible. Especially departmental; stores are the best channels in their

case.

3. In the case of goods, which require technical knowledge or skills for sales, maintenance,

repairs, etc.the channel ;must be selective in ;nature. Middlemen also could be used provided

they could offer these services efficiently.

4. Goods with high unit cost are sold more directly and selectively; as also; they bulk ones.

For branded able products, multiple shops would be the best channels.

71
5 because of widely spread market and low unit value, the convenience goods may be

distributed through intensive channels.

6. The length of the product line would compact direct sales. It is the case whe3n customers

are concentrated geographically.

7. The shopping goods are usually of high unit value of tend and involve a style element

therefore they tend to use more direct and selective channels. The channel objectives must be

maximization of sales good will and control and minimization of costs. These objectives are

of course conflicting in nature buy finally depending on the market marketing mix resources

and environment factors. They are more o less permanent in nature. An understanding of

these factors will enable a person to make a proper and selection of channel for his product.

TYPES OF CHANNELS

1. PRODUCER ------- CONSUMER

2. PRODUCER ------- RETAILER ------ CONSUMER

3. PRODUCER ------- WHOLESALER ---- RETAILER ----- CONSUMER

4. PRODUCER ------ AGENTS ------------ RETAILER ----- CONSUMER

72
CHANNEL FOR INDUSTRIAL PRODUCTS;

1. PRODUCER----- INDUSTRIAL USER

2. PRODUCER ----- INDUSTRIAL DISTRIBUTOR -----. USER

3. PRODUCER----- AGENTS----------------------------- USER

4. PRODUCER----- AGENTS-------INDUSTRIAL DISTRIBUTORS----- USER

73
FACTORS AFFECTING THE CHOICE OF DISTRIBUTION CHANNEL

1. Market Consideration

a. This include the nature of market

b. The nature of potential customers

c. Geographical concentration of the ;market

d. Order and size

e. Customer buying and wealth

2. Product Consideration

a. Unit Sale value

b .Bulk and weight

c. Technical nature of the product

74
 d. The broader the product line, the shorter shall be the channel

e. If the product is custom make

3. Company Consideration

A. Financial sound companies

B. Desire for control of channel

4. Middlemen Consideration

a. Services

b. Maximum Sales volume

c. Choice of sales/channels

5. Consumer Consideration

a. Consumer4 requirements

b. Convenient location

SELECTION OF CHANNEL FOR NEW PRODUCT:

1. Consumer realizes they want it.

2. Aggressive promotion is needed.

3. All possible efforts will have to be made.

CHANGE IN CHANNELS OF DISTRIBUTION

1. The development of bett3er and cheaper means of transport.

2. The growing importance of branded

75
3. Controlling of facts and distribution

4. Development of retail trade.

5. The population growth and movement within the country.

6. Conditions of business and market changes.

7. Remodel or change of the flow of goods.

MARKET ING STRATEGIES:

clear about what counts and it makes easier to align the whole organization
with the central positioning.

The breand should tout it self as “number one” on the benefit it select number one
positioning include “best quality”, “best performance” ,”best service”, “best styling”,
best value”, “lowest price”,”safest”, “fastest”, “most customized”,”most convenient”,
“most technological”,”most reliable”, or most prestigious”, if a company consistently
hammers away at one position and delivers on it ,it will probably the best know and
recalled for this benefit.

As companies increase then no.of claimed benefits for this brand, the risk this beliefs
and loss of clear position .in general the company must four major positioning errors.

1.UNDER POSITIONING:

Some companies discover that buyers have only a vague ideas of the brand. The brand
is seen as just another enter in a crowded market paces. When pepsi interduced its
clear crytal pepsi in 1993,custmors where distinctly unimpressed. They did not see
clarity as an important benift in soft dink.

2.OVER POSITIONING;

Buyer may have too narrow an image of the brand.

Thus a customer might think that diamond rings at tiffany statrt at $5000 when in fact tiffany
now offer affordable diamond rings staring at $1000.

3.CONFUSED POSITIONING

Buyer might have a confused images of the bank resulting from the companies making too
many times or changing the band’s position to frequently. This was the case with Stephen
job’s sleek and powerful next desktop computer. Which was positoned first for student then
for engineers and then for business people,all successfully

76
4. DOUBTFUL POSITIONIN:

Buyers may find it hard to believe the brand claims in view of the products features. Price or
manufactures then Gm’s Cadillac division introduction the Cimarron, it positioned the car as
a luxury competitor

With bmw, Mercedes and audi although the care featured leather seats,a luggage rack lots of
chrome and a Cadillac logo stamped on the chassis customers saw it as dolled of version of a
chevy’s cavalier and olds mobiles’s firenza. The car positioned as “more for more” customer
saw it as “lets for more”.

Solving the position problem enables the company to solve the marketing mix problem.
Seizing the “high quality position” required the film to produce high quality products. Charge
a high price distribution through high-class dealers, and advertise in the quality magazines.

1. WHICH BRAND OF MILK ARE YOU USING REGULARLY?

BRAND NAME NO.OF Percentage

RESPONDENTS
VISHAKA 64 67%
OTHERS 38 33%
TOTAL 102 100%

77
 Percentage
Yes No

33%

67%

INTERPRETATION

The total sample size was 102 customers out of 150 which were considered, In that 67% of

customers answered that they have used the Visakha Dairy products. But only 33% of people

said no.

2. WHAT IS BUYING PATTERN OF THE CONSUMERS?

78
 Buying Pattern NO.OF % of consumers

RESPONDENTS
Milk Booth 39 38%
Door Delivery 17 17%
Kirana shops 24 24%
Dept stores 1 1%
Local Vendors 17 17%
Parlors 4 3%
TOTAL 102 100%

38
40
35
24
30
25 17 17
20
15
10 1 3
5
0

% of consumes

INTERPRETATION

79
The above graph shows the buying pattern of the consumers. We observed that majority of

the consumers buy the milk from milk booths while very few from dept stores 24 percent of

the customers buy the milk from kirana shops where as 17 percent of the customers were

buying from local vendors and 3 percent from parlour.

3. WHAT IS THE QUANTITY OF MILK CONSUMED PER DAY BY YOU ?

Quantity NO.OF Percentage

RESPONDENTS
5 to 2 Ltr 59 57%
1 to 2 Ltr 33 33%
Less than 0.5 Ltr 10 10%
TOTAL 102 100%

57

60

50 33

40

30
10
20

10

0
05 to 2 Ltr 1 to 2Ltr Less than 0.5Ltr

Percentage

INTERPRETATION

80
We observed that 10 percent of the consumers were using the milk of quantity 0.5 to 1 litre

where as 33 percent of the consumers are using milk of quantity1to 2 litres and 57 percent

are using more than 2litres.

81
 4. WHAT IS THE PRICE OF MILK THAT YOU (CONSUMER) ARE USING

NOW ?

Price per Ltr NO.OF Percentage

RESPONDENTS
28(PASTEURUZED FULL CREAM 57 56%

MILK)
26(HOMOGENIZED TONNED MILK) 36 36%
35(PASTEURIZED TONNED MILK) 9 8%
TOTAL 102 100%

56

60

50 36

40

30

8
20

10

0
26 22 19

Percentage

INTERPRETATION

It is observed that 56 percent of the people were buying the milk per litre for Rs 28and 36

percent of people were buying the milk per litre for Rs 26.Only 8 percent of the people were

buying the milk per litre for Rs 35. So majority of people were buying the milk for Rs 28per

litre.

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5. ARE YOU( CONSUMER) AWARE OF THESE MILK PRODUCTS ?
Product NO.OF Percentage

RESPONDENTS
Milk 102 100%
Curd 102 100%
Butter Milk 77 76%
Sweets 23 22%
Ghee 74 73%
Flavored Milk 26 25%

100 100
100
90 76 70
80
70
60
50
40 25
22
30
20
10
0
Milk Curd ButterMilk Sweets Ghee Flavored
milk

Percentage

INTERPRETATION

Almost every customer knew about the milk and curd of Visakha Dairy. Buttermilk was the

second most known product i.e., 76% knew about it. Sweets was known to very few

customers only.25% knew about flavored milk

83
6. THE FACTOR THAT MOTIVATES THE CONSUMERS TO BUY

Factor NO.OF Percentage

RESPONDENTS
Taste/quality 76 75%
Easy availability 11 10%
Packing Design 7 7%
Advertisements 8 8%
TOTAL 102 100%

INTERPRETATION

It is observed that 75 percent of the customers consider the quality where as10 percent

consider easy availability of the product ,8 percent advertisement and 7 percent consider

packing/design.

84
 7. MONTHLY INCOME OF THE CUSTOMER

Monthly Income NO.OF Percentage

RESPONDENTS
1000-5000 14 14%
5000-10000 67 66%
10000-15000 13 12%
More than 15000 8 8%
TOTAL 102 100%

INTERPRETATION

The market survey revealed the income of the customers as follows.66 percent of the

customers are earning 5 to 10 thousand rupees per month, where as 14% are earning 1 to 5

thousand rupees per month, 10 to 15 thousand rupees per month are 12% .The customers who

are earning more than 15 thousand rupees per month are 8%.

85
 8. ARE YOU SELLING MILK PRODUCTS?

Opinion No of Respondents Percentage

NO 92 90%
YES 10 10%
TOTAL 102 100%
TOTAL 102 100%

INTERPRETATION

From the above we can derive at the maximum percentage i.e.,90% of the respondents are

selling milk and milk products and 10% of the respondents are not selling milk and milk

products.

86
 9. HOW LONG HAVE YOU BEEN USING THESE MILK PRODUCTS?

Years NO.OF Percentage

RESPONDENTS
10 37 37%
5 21 21%
3 24 23%
2 20 21%
TOTAL 102 100%

Percentage
40%
35%
30%
25%
20%
Percentage
15%
10%
5%
0%
10 years 5 years 3years 2 years

INTERPRETATION

From the above it is observed that 37% of consumers are using Visakha dairy from 10 years,

21% of the consumers are using Visakha dairy from five years, 24% of consumers are using

Visakha dairy from 3 years, 21% of consumers are using Visakha dairy from 2 years..

87
10. HOW IS THE QUALITY OF VISAKHA DAIRY MILK PRODUCTS?

OPINION NO.OF PERCENTAGE

RESPONDENTS
Good 78 77%
Satisfactory 19 19%
Poor 5 4%
TOTAL 102 100%

90%
77%
80%
70%
60%
50%
40%
30%
19%
20%
10% 4%
0%
Good Satisfactory Poor

Percentage

INTERPRETATION

From the above it is evident that 77% of CONSUMERS say it is excellent in quality, 19% of

CONSUMER say it is satisfactory, 4% of CONSUMER say it is poor in quality.

88
11. WHAT IS YOUR OPINION ABOUT THE PRICE OF VISAKHA

DAIRY MILK PRODUCTS?

Price NO.OF Percentage

RESPONDENTS
HIGH 11 11%
RESONABLE 58 57%
LOW 33 32%
TOTAL 102 100%

High, 11%

Low, 32%

Reasonable, 57%

INTERPRETATION

From the above it is evident that 11% of consumers say it is reasonable in price, while 58%

of Retailers say it is high in price and 33% say it is low in price.

89
 12. HAS VISAKHA DAIRY PROVIDED ANY COLD CHAIN FACILITIES?

OPINION NO.OF Percentage

RESPONDENTS
Yes 16 77%
No 4 13%
TOTAL 20 100%

INTERPRETATION

From the above it is evident that 77% of dealers say Visakha dairy provide any cold chain

facility, 13% of dealers say Visakha dairy does not provide any cold chain facility

90
 13. HOW OFTEN DOES VISAKHA DAIRY MARKETING PEOPLE VISIT YOUR

PREMISES?

OPINIONS NO OF PERCENTAGE

RESPONDENTS
Daily 8 39%
Alternative days 4 20%
Once week 3 19%
Twice a week 2 10%
Fortnightly 2 7%
Monthly 1 5%
TOTAL 20 100%

39%
Percentage
45%
40%
35%
30% 20%
19%
25%
10%
20%
7% Percentage
15% 5%
10%
5%
0%
Daily Alternative Once a Twice a Fortnightly Monthly
days week week

INTERPRETATION

From the above we can evident that 39% of visakha dairy marketing people visit premises

daily, while 20% on Alternatives days, while 19% once a week and 10% twice a week and

7% fortnightly and 5% monthly.

91
 14. WHICH PRODUCT HAS A MAXIMUM SALE?

OPINIONS NO OF PERCENTAGE

RESPONDENTS
UHT Milk 8 37%
Butter milk 5 23%
Curd 2 12%
Lassi 2 10%
Other 3 18%
TOTAL 20 100%

37%
Percentage
40%
35%
30% 23%
25% 18%
20% 12%
10% Percentage
15%
10%
5%
0%
UHT Milk Butter milk Curd Lassi Other

INTERPRETATION

The sales analysis of Visakha dairy products shows that 37% of customers buying UHT milk,

23% buy butter milk, 12% buy curd and 10% buy Lassi and 18% buy other products.

92
15. ARE YOU SATISFIED WITH COMMISSION OFFERED BY

VISAKHA DAIRY TO SELL THEIR PRODUCTS?

Are you selling milk products?

17%

Yes
No

83%

OPINIONS NO OF PERCENTAGE

RESPONDENTS
Yes 17 83%
No 3 17%
TOTAL 20 100%

INTERPRETATION

From the above it is observed that 83% of the retailers are satisfied with commission offered

by Visakha dairy and 18% are disatisfied with commission offered by Visakha dairy

93
16. OPINION ABOUT THE PRESENT DISTRIBUTION CHANNEL OF VISAKHA

DAIRY?

OPINIONS NO OF PERCENTAGE

RESPONDENTS
Excellent 4 21%
Good 9 47%
Satisfactory 5 23%
Poor 2 9%
TOTAL 20 100%

Poor, 9% Excellent, 21%

Satisfactory, 23%

Good, 47%

INTERPRETATION

In the above graph47% of the retailer are saying that the distribution channel of Visakha

dairy is good,21% of the retailers are saying that the distribution channel of Visakha dairy is

excellent. In the above graph13% of the retailers are saying that the distribution channel of

Visakha dairy is satisfactory. In the above graph9% of the retailers are saying that the

distribution channel of Visakha dairy is poor.

94
17.HAVE YOU FACE ANY PROBLEMS WITH THE PRODUCTS OF

VISAKHA DAIRY?

OPINIONS NO OF PERCENTAGE

RESPONDENTS
Yes 3 18%
No 17 82%
TOTAL 20 100%

Yes, 18%

No, 82%

INTERPRETATION

In this majority of the retailers are not having problem with the products of Visakha dairy.

95
18.ARE YOU SATISFIED WITH THE PROMOTIONAL SCHEME

OFFERED BY VISAKHA DAIRY?

OPINIONS NO OF PERCENTAGE

RESPONDENTS
Yes 15 74%
No 5 26%
TOTAL 20 100%

INTERPRETATION

In this74% of the retailers are satisfied with the promotional schemes offered by Visakha

dairy.

96
19. SPECIFY THE MILK PRODUCTS WHICH YOU ARE SELLING?

OPINIONS NO OF PERCENTAGE

RESPONDENTS
Milk 9 47%
Curd 5 25%
Buttermilk 2 10%
Badam milk 3 13%
Lassi 1 5%
TOTAL 20 100%

47% Percentage
50%
45%
40%
35% 25%
30%
25%
13% Percentage
20% 10%
15%
5%
10%
5%
0%
Milk Curd Badam milk Buttermilk Lassi

INTERPRETATION

The sales analysis of various Dairy products shows that47% of customers buying milk, 25%

of customer buying curd, 10% of customers buying buttermilk, 15% of customers buying

badam milk and 5% of customers buying Lassi and other products.

97
20. HOW DO YOU PLACE AN ORDER FOR THE STOCK?

OPINIONS NO OF PERCENTAGE

RESPONDENTS
Over the phone 4 17%
Send a person 5 27%
Through sales vehicles 6 29%
Representative Collects the 5 27%

indent
TOTAL 20 100%

Representative of
VD, Collects the
indent, 27%
Over the
phone , 17%

send a person, 27%

Through sales
vehicle, 29%

INTERPRETATION

98
From the above it is evident that 27% of retailers say that Representative of Visakha dairy

collects the indent, while 27 send a person and 29% through sales vehicle and only 17% over

the phone.

21. HOW FAST DO YOU GET THE STOCK?

OPINIONS NO OF PERCENTAGE

RESPONDENTS
Same day 8 37%
Immediate receipt of the day 5 23%
Next day 4 20%
After 1 day 2 7%
After 2 days 1 3%
TOTAL 20 100%

INTERPRETATION

From the above it is evident that 37% of retailers say that they get stock on same day while

23% retailers say immediate. Receipt of the order, 20% says next day and 7% say that after 1

day and3% after two days.

99
 FINDINGS OF THE STUDY

 Majority of the Visakha dairy distributers are satisfied with the promotional schemes

offered by the Visakha dairy.

 More than 84%of the Distributers are satisfied with the commission offered by

Visakha dairy.

 Most of the Distributers are giving preference for quality and regular supply among

the various factors for selling milk.

 Visakha dairy milk products are having maximum sales and 67% consumers are

pefering and using visskha dairy products

 Maximum numbers of distributers are saying that they face leakage problem rarely.

 Most of consumers buy from dealers and retailers

 Vishaka dairy provides cold chain facilities to 77% of its dealers

 Stock doesn’t take much time to reach its dealers. There will be less delay when

compared to other brands

 Majority of consumers are aware of milk and curd compared to other dairy product.

100
 Majority of consumers are buying vishaka dairy product from last 10 years.

 77% of consumers stated that quality of vishaka milk is good and they are satisfied

with the price of the milk.

 Dealers and retailers are satisfied with distribution of goods by vishaka

SUGGESTIONS

 It was observed that majority of the people are buying the milk from milk booths. So

it’s better to improve the services to the customers in milk booths.

 From research we find that majority of the people were buying the milk for Rs 26per

liter .So it’s better to improve the production of milk for Rs.26 in order to satisfy.

 Out of 102 samples, all the people were aware of Visakha Dairy. Next to Visakha

Dairy was the well known brand. So we find that Visakha Dairy was a well known

and a notified brand.

 Among all the brands of milk products maximum people were using Visakha Dairy

products. After this Heritage was the well known and competitive brand for Visakha

Dairy. In order to maintain its market shares Visakha Dairy. In order to maintain its

market share Visakha Dairy has to maintain its quality.

101
 Taste/quality was one of the factors the customers to buy the particular brand. Easy

availability and advertisement were also one of the factors to buy the particular brand

products.

 The market survey conducted by me has reveled that most of the people were aware

of Vishaka Dairy milk and milk products

 One of the advertising media followed by the Visakha Dairy was paintings. This has

occupied a great position in crating awareness of the Visakha Dairy brand. So it’s

necessary to take care on paintings. Addition to these banners was also playing an

important role an important role in awareness brand. The role of newspapers, hording,

pamphlets were very less.

CONCLUSION

Inspire of all the above inadequacies, which are highlighted in the suggestions the

Visakha dairy has a good brand image and brand loyalty among the customers. All the

employees are target-oriented in their respective fields. They created a congenial

working environment and working with co-ordination to achieve the ultimate targets

of the Visakha dairy.

The organization should motivate its commission agent to the almost possible extent

to it .it has to develop its promotion activities. New methods of advertising i.e. using

the media of advertising more efficiently and innovatively should be done. Customers

102
should be made aware of the product mix of Visakha dairy and other products, which

they are selling.

Dealers, retailers, wholesalers were satisfied with the facilities provided by Vishaka

dairy such as

 COMMISSION

 DISTRIBUTION

 COLD CHAIN STORAGES

 SUPPLY

 PROMOTIONS

BIBILOGRAPHY

Marketing management: Philip kottler

Marketing management: Ramaswamy & namakumari

A brief note on VC :internal records of the dairyinformation gathered though

internet web sites are:

103
www.discovermik.co.uk

www.apdairy.com

www.dairy.com

QUESTIONNAIRE TO THE CUSTOMERS

Name:
No of family members:
Occupation:

104
 Questions:

1. WHICH BRAND OF MILK ARE YOU USING?

a. Vishaka dairy b. Jersey c. Heritage

d. Doodla e. Madura milk f. Trimula

2. WHAT IS PURCHASING PATTERN OF THE CONSUMERS ?

a. Milk booths b. Door delivery c.kirana shops

d. departmental stores e. local vendors f. parlour

3. WHAT IS THE QUANTITY OF MILK USED PER DAY BY YOU ?

a.3-2 liters b. 1-2 liters c. 0.5 liters

4. WHAT IS THE PRICE OF MILK THAT YOU (CONSUMER) ARE USING?

a. 26 b. 22 c.19

5. ARE YOU (CONSUMER) AWARE OF THESE MILK PRODUCTS?

milk YES/NO
Curd YES/NO
Butter milk YES/NO
Sweets YES/NO
Ghee YES/NO
Floured milk YES/NO

6. THE FACTOR THAT MOTIVATES THE CONSUMERS TO BUY

a. Taste/quality b. easy availability c. packing design d. advertisements

7. WHAT IS YOUR MONTHLY INCOME

a. 1000-5000 b. 5000-10000 c. 10000-15000 d. More than 15000

8. ARE YOU SELLING MILK PRODUCTS?

a. YES b. NO

9. HOW LONG HAVE YOU BEEN USING THESE MILK PRODUCTS?

a. 10 b. 5 c. 3 d. 2

105
10. HOW IS THE QUALITY OF VISAKHA DAIRY MILK PRODUCTS?

a. good b. satisfactory c. poor

11. WHAT IS YOUR OPINION ABOUT THE PRICE OF VISAKHA DAIRY MILK
PRODUCTS?
a. good b. satisfactory c. poor

106
 QUESTIONNARE TO THE BOOTH AGENTS

Name:

Place:

Booth number:

Booth name:

Questions:

12. HAS VISAKHA DAIRY PROVIDED ANY COLD CHAIN FACILITIES?

a. YES b. NO

13. HOW OFTEN DOES VISAKHA DAIRY MARKETING PEOPLE VISIT YOUR

PREMISES?

a. Daily b. alternative days c. once a week d. twice a week e. fortnightly f. montly

14. WHICH PRODUCT HAS A MAXIMUM SALE?

a. UHT MILK b. BUTTER MILK c. CURD d. LASSI e. OTHERS

15. ARE YOU SATISFIED WITH COMMISSION OFFERED BY VISAKHA DAIRY TO

SELL THEIR PRODUCTS?

a. YES b. NO

16. OPINION ABOUT THE PRESENT DISTRIBUTION CHANNEL OF VISAKHA

DAIRY?

a. EXCELLENT b. GOOD c. SATISFACTORY d. POOR

17. HAVE YOU FACE ANY PROBLEMS WITH THE PRODUCTS OF VISAKHA

DAIRY?

107
 a. YES b. NO

18. ARE YOU SATISFIED WITH THE PROMOTIONAL SCHEME OFFERED BY

VISAKHA DAIRY?

a. YES b. NO

19. SPECIFY THE MILK PRODUCTS WHICH YOU ARE SELLING?

a. MILK b. CURD c. BUTTER MILK d. BADAM MILK e. LASSI

20. HOW DO YOU PLACE AN ORDER FOR THE STOCK?

a. OVER THE PHONE b. SEND A PERSON c. THROUGH SALES VEHICLE

d. RREPRESNTATIVE e. COLLECTS THE INDENT

21. HOW FAST DO YOU GET THE STOCK?

a. SAME DAY b. IMMEDIATE RECEIPT OF THE DAY c. NEXT DAY

d. AFTER 1 DAY e. AFTER 2 DAYS

THANK YOU

108