A

PROJECT REPORT
ON
“COMPARATIVE STUDY OF MILK PRODUCTS OF NESTLE AND
VERKA”

Submitted to LKCTC (Affiliated to the IKG Punjab Technical University)

In Partial Fulfillment of the requirement for the award of degree
of MASTERS OF BUSINESS ADMINISTRATION

Submitted by: Supervisor:

Gupreet kaur Mr. Bharat Bhushan
2131396 (Assistant Professor LKCTC)

DEPARTMENT OF MANAGEMENT
LKCTC
JALANDHAR
(2021-2023)
 Table of contents

Serial no. Particulars Page no.

1 Introduction 3-5

2 Review of literature 6-9

3 Objective of study 10-11

4 Reference methodology 12-15

Reference 16-19

2
 CHAPTER-1
INTRODUCTION

3
 INTRODUCTION
Dairy industry is of crucial importance to India. The country is the world's largest milk
producer, accounting for more than 13% of world's total milk production. It is the
world's largest consumer of dairy products, consuming almost 100% of its own milk
production. Dairy products are a major source of cheap and nutritious food to millions
of people in India and the only acceptable source of animal protein for large vegetarian
segment of Indian population, particularly among the landless, small and marginal
farmers and women. Dairying has been considered as one of the activities aimed at
alleviating the poverty and unemployment especially in the rural areas in the rain-fed
and drought-prone regions. In India, about three-fourth of the population live in rural
areas and about 38% of them are poor.

India ranks first in world milk production, its production having increased from 17
million tones in 1950-51 to 108.5 million tones by 2008-09. The per capita availability of
milk increased from 112 grams per day in 1968-69 to 258 grams per day in 2008-09.

Milk Processing
The milk processing industry is small compared to the huge amount of milk produced
every year. Only 10% of all the milk is delivered to some of milk produced in the country
is handed by unorganized sector 1.33 lacs village level dairy co-operative society spread
over 265 districts in the country, collect about 25.1 million litters of milk per day and
market about 20 million litters. A specific Indian phenomenon is the unorganized sector
of milkmen, vendors who collect the milk from local producers and sell the milk in both,
urban and non-urban areas, which handles around 65-70% of the national milk
production. In the organized dairy industry, the cooperative milk processors have a 60%

4
market share. The cooperative dairies process 90% of the collected milk as liquid milk
whereas the private dairies process and sell only 20% of the milk collected as liquid milk
and 80% for other dairy products with a focus on value-added products.

Domestic Consumption
The huge volume of milk produced in India is consumed almost entirely by the Indian
population itself, in a 50-50 division between urban and nonurban areas. Increasingly,
the industry are fast-food chains and food and non-food industries using dairy
ingredients in a wide range of products

5
 CHAPTER- 2
REVIEW OF LITERATURE

6
 REVIEW OF LITERATURE

T. R. Rajarajan (2021) feel that the combined effects of both domestic reforms and WTO
commitments in the last decade have changed the environment in which the Indian
dairy industry will operate in future. Terms of trade is a significant indicator of gains
from trade and efficiency of domestic industry. In average terms, the terms of trade of
Indian dairy products has declined in the post-liberalization period as compared to pre-
liberalization years. The year-wise trend is unstable with wide fluctuations in post-
liberalization years. The real effects of trade liberalization will unfold only when the
WTO provisions are properly implemented.

Mr. Martial Rolland, Chairman and Managing Director of Nestlé India and Mr.Shobinder
Duggal, Director -Finance and Control analyzed the Company's performance during the
9 months of 2020. Mr. Rolland reaffirmed the trust of the Company in the areas of
Nutrition, Health and Wellness as well as its focus on Innovation and Renovation, using
the Nestlé Group's extensive strengths in Research & Development and stated" Having
been part of the fabric of India for so many years we have developed a strong consumer
intimacy based on quality and trust. Together with the Nestlé Group's superior Research
and Development capabilities this provides us with unique opportunities to offer
consumers greater convenience, Taste, Nutrition, Health and Wellness. We have
recently realigned some of the internal structures to become a multifocal company and
our 7 Value Driver model will keep us on track for long term, sustainable and profitable
growth."

Anon. (2018), in her study that the India now has indisputably the world's biggest dairy
industry at least in terms of milk production; last year India produced close to 100

7
million tonnes of milk, 15% more than the US and three times as much as the much-
heralded new growth champ. China. Appropriately, India also produces the biggest
directory or encyclopaedia of any world dairy industry.

Anon. (2017) researched that Nestle will soon roll-out Nido, the world's largest selling
children's milk powder brand, in India. A manufacturing facility has been set up at Moga,
Nido is being test-marketed in Kerala and will be launched in other parts of the country
in phases. The company aims big for dairy products and may launch many global brands
in milk, yoghurt and powdered milk. In addition, it is investing in research and several
new products may be launched for the Indian market. New products focused on the
health and wellness segment, for example, could be liquid milk variants for lactose-
intolerant consumers, senior company executives have been quoted in Indian business
newspapers as saying. The company says India specific low-fat milk and yoghurt have
been clocking excellent growth. Capacity expansion at its existing manufacturing
facilities in Moga (Punjab) and Samalkha (Haryana), and sprucing up its distribution are
being planned to handle increased demand for food products such as Maggi noodles
and dairy products.

Vikas Jaatyan (2016) feels that the Punjab may be flopping on fronts like health,
information technology but its flavoured Verka lassi, desi ghee ice-cream, sweetened
milk, panjiri, pancer, curd, and kheer are doing very well in the national and
international market. Milkfed, state's leading cooperative, known for Verka brand in and
outside the country has achieved 64 per cent growth in the sale of lassi, 37 per cent in
sweetened flavoured milk, 31 per cent in ghee, 21 per cent in ice cream, 70 per cent in
kheer and 39 per cent in paneer last year. Desi ghee and lassi have been traditionally
strong area of Punjah. Milkfed, that has achieved overall growth of 21 per cent last year,
is in fact expecting big increase in the milk collection in winter this year. Owing to this
reason, it has already started looking for new markets in Delhi and elsewhere to sell milk
and its products. Impressed by the performance of Milkfed, some of the leading
companies in milk business Yoplait group, second biggest fresh dairy product company
in the world, has approached it for long-term partnership. There has been 31.08 per
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growth in milk procurement in the first fortnight of the May known as a lean period as
far as procurement of milk is concerned. During first 12 days of May, the average

procurement of milk was 8.83 lakh kg compared to7.01 lakh kg of corresponding period
in the last year. Amritsar, Gurdaspur, Patiala, Ludhiana, Ferozepur and Jalandhar
districts are doing very well with regard to the milk procurement. Overall turnover of
the Milkfed had gone up to Rs 918 crore by the end of last financial year and it would
cross Rs 1,000 crore at the end of current year. Increase in the turnover has been to the
extent of 20.9 per cent in 2007-08 compared to the previous year

S. Sarkar a (2015) reveals that Dahi is considered the oldest Indian fermented milk
product and is equivalent to Western yogurt from which derivatives such as shrikhand
(sweetened concentrated curd) and lassi (stirred curd) are derived. Dietetic significance
of Indian fermented milk products has been established due to its various nutritional
and therapeutic properties. Acceptable quality dahi could be obtained with the
application of acid producing as well as flavor (primarily diacetyl)-producing organisms
and adopting a two-stage fermentation. Biotechnological innovations suggest inclusion
of certain probiotic and beneficial bacteria for further enhancement in the dietetic
properties of traditional dahi. Application of bio-preservatives and thermization (mild
heat-treatment) may be recommended for shelf-life extension of dahi to extend the
market

9
 CHAPTER-3
OBJECTIVES OF THE STUDY

10
 OBJECTIVES OF THE STUDY

 To compare milk products of Verka and Nestle as per customer perception.

 To study the customer awareness regarding milk products of Verka and Nestle. .

 To know the reasons for purchasing milk products of particular brand.

 To study the satisfaction level with the overall performance of milk products.

11
 CHAPTER- 4

RESEARCH METHODOLOGY

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 RESEARCH METHODOLOGY

Research means a search for knowledge or gain some new knowledge and methodology
can properly refer to the theoretical analysis of the methods appropriate to a field of
study or to the body of methods and principles particular to branch of knowledge. A
Research methodology has a specified framework for collecting the data in an effective
manner. Research methodology means a "defining a problem, defining the research
developing the research plan, collecting the information, analyzing the information and
presentation findings." framework is called "Research Design". The research process
that was followed by me consisting following steps:

Research Design
A research design will be the arrangement of conditions for the collection and analysis
of data in a manner that aims to combine relevance to research purpose with economy
in procedure. The research will be descriptive in nature.

Type of Research
Survey will be best suited for descriptive and analytical research. Survey are undertaken
to learn about people's knowledge, beliefs, preferences, satisfaction and so on and to
measure these magnitudes in the general public.

Descriptive Research
Descriptive research is used to obtain information concerning the current status of the
phenomena to describe "what exists" with respect to variables or conditions in a
situation. The methods involved range from the survey which describes the status quo,
the correlation study which investigates the relationship between variables, to
Developmental studies which seek to determine changes over time

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Sampling Design

It will be definite plan for obtaining a sample from a given population. It refers to
the technique or the procedure the researcher would adopt in selecting items for
the sample. The sampling plan or design calls for the following decisions:

Sample Universe: Sample Universe will be the largest entity to be described, of

which the sample will be a part.

Sample Unit: Who will be surveyed? The sample unit pertaining to study will be milk
product customers of Jalandhar city.

⚫ Sample Size: How many people will be surveyed? The sample size of 100 served
the purpose of the study.

• Sample Technique: The sampling method used will be non-probability convenience

sampling (where the researcher selects the most accessible population members from
which to obtain information).

Data Collection

The researcher can get two types of data:

a) Secondary Data

b) Primary Data

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Secondary data

Any data which have been collected earlier for some purpose are the secondary
data. Indirect collection of data from sources containing past or recent

information like company's brochures, annual publication, books etc. Secondary

sources used are:

✓ Text books

✓ Journals

✓ Internet sites

• Primary Data

15
 REFERENCE
AND
BIBLIOGRAPHY

16
 REFERENCE AND BIBLIOGRAPHY

Books:

⚫ Kotahri C.R. (2005), Research Methodology, Tata Mcgraw Hill, New Delhi.

Journals:

⚫ Tarun Jain (2005), "A Study of the Construction of BCG Matrix for Nestle
India" Supreme Court of India; London School of Economics & Political
Science (LSE), National Law University Jodhpur (NLUJ)

T. R. Rajarajan (2006), "Trade Liberalization and Terms of Trade in Dairy

Products in India", The ICFAI Center for Business Research, ICFAI Journal of
Agricultural Economics, Vol. 3, No. 1, pp. 22-26

Mr. Martial Rolland, Chairman and Managing Director of Nestlé India and
Mr.Shobinder Duggal, Director-Finance and Control (2005), "Nestlé India's
"7 Value Driver Model Drives Sustainable and Profitable Growth"

⚫ Manitra Rakotoarisoa and Ashok Gulati (2006), "Competitiveness and trade

potential of India's dairy industry" Markets, Trade and Institutions Division.
International Food Policy Research Institute, 2033 K St. NW, Washington, DC
20006, United States

Anon. (2007), "Dairy India 2007 Market Research Repon available at

http://www.prlog.org/10035343-dairy-india-2007-market-research-report.html

17
 Anon. (2007), "Nestle to launch Nido milk powder, other dairy brands", Food
Industry India.

Singh, Sukhpal (2007), "Marketing of Liquid Milk: A Case Study of

Ahmedabad Milk Market". Indian Journal of Agricultural Economics, Vol. 40,
No. 3, pp. 317- 323.

. Anon. (2008), "Nestle expands dairy portfolio, launches new milk product"
Financial Express

. S. Sarkar a (2008), "Innovations in Indian Fermented Milk Products-A,

Food Biotechnology, Volume 22, Issue 1, Pg. 78-97
Vikas Jaatyan (2008), :Punjab's pride: Ghee, lassi, panjiri, kheer..." NVO
News Online Edition

Anon. (2009), "Nestle India records growth in all its four segments"

• Alkesh Sharma (2009), "Lassi becomes money spinner for Punjab milk

cooperative", Jansamachar.net Online Newspaper

⚫ Swarleen Kaur (2010), "Punjab's Milkfed plans to sell low-calorie sweets",

Financial Express

• Anon. (2010), "Dairy king gets creamy layer". The Times of India Online Edition.

Websites:

• http://papers.ssm.com/sol3/papers.cfm?abstract_id=1104922

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 http://www.informaworld.com/smpp/content-content-a790615472&db=all

http://www.highbeam.com/doc/1P3-1381198671.html

• http://www.nestle.in/PR AnalystMeet.pdf

http://www.livemint.com/2009/05/18152546/Nestle-India-records-growth-
in.htm…

http://www.foodindustryindia.com/newfood/detailnews.jsp?n-Nestle to la unch
Nido milk powder. other dairy brands&id=245

http://www.financialexpress.com/news/nestleexpandsdairyportfolio-

launchesnewmilkproduct/331076/

http://www.aavinmilk.com/dairyprofile.html

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