Indhumathi.v II Mba -1 (4)

INTRODUCTION
The world's largest producer of milk is India. With several chances for business
owners worldwide, India is referred to as the "Oyster" of the international dairy
industry. Every country in the world may consider it a dream to take advantage of the
largest and fastest-growing market for milk and milk products. With deregulation,
India's dairy business has experienced remarkable expansion. As a result of the
economy, MNCs and foreign investors have excellent opportunities to unleash the full
potential of this sector. The primary goal of the Indian dairy industry is to utilize
cutting-edge technologies to better manage national resources in order to increase
milk output and milk processing.
By increasing milk production per animal, crossbreed technology in the Indian dairy
industry has further improved the viability of dairy units. Subsequently, milk
production also increased. while the advantages of an increase in milk output also
reached the customers through a relatively lesser increase in milk price, at an
exponential rate.
Yet, it seemed as though the dairy industry in India's favorable price environment for
milk producers had eroded during the 1990s, with a fall in the real price of milk
observed after 1992 and then slowly regaining its glory after 1992 to the present.
Dairying has been seen as a tool for social and economic development in India for a
very long time. The milk that the nation consumes is produced by millions of small
farmers who are distributed throughout the countryside. All of these farmers keep a
typical herd of one or two dairy animals, which may include cows or buffaloes.
Farmers are encouraged to undertake dairying as a secondary activity to agriculture
because there is typically plenty of labour and little available land. Dairying offers a
stable income that is available year-round and serves as a significant economic
incentive for small businesses as crop producing income is seasonal. Over the years,
dairy farming in India has been conducted as a rural cottage industry. All around the
end of the 19th century, military dairy farms and cooperative milk unions were
established across the nation, marking the beginning of semi-commercial dairy. Since
independence, this sector of the economy has advanced quickly. Since then, a
significant number of contemporary milk and milk product factories have been
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constructed. India's organized dairies have been producing pasteurized bottles of milk
for Indian dairy products successfully on a regular basis.
Throughout the past three decades, the Indian dairy industry has grown at an
astonishing rate of more than 5% annually. In the 1990s, the countries have grown to
be the biggest milk producer. When we consider how strict dairying is in India, where
farmers often keep dairy cows in proportion to their free crop and are also accessible
for family chores with little to no purchased inputs and a minimum of sold outputs,
this is not a little accomplishment. The dairy industry's stringent trade policies and the
formation of cooperatives like to Amul have altered the nation's dairy farming
practices. Farmers now receive a favorable price for the milk they produce, which was
primarily a self-sufficient endeavor but is now being turned into a business venture.
Small and marginal landowner farmers as well as landless Laboure’s, who collectively
control 70% of the country's dairy animal herd, are the main producers of milk in
India. Additionally, because 78% of agricultural land still depends on rain, which is
vulnerable to both drought and flooding, agricultural revenue is highly uncertain for
the majority of farmers. For the majority of farmers in society, dairying serves as a
supplemental source of income and employment. Generally, one or two milk cows are
enough to help farmers overcome the vicious cycle of subsistence agriculture and
debt.
The successful Indian dairy development programme Operation Flood has examined
how food assistance might be used as an investment in creating the kind of
institutional infrastructure that can result in national dairy development. In order to
meet the demand for milk in cities, India began commercially importing about 55000
tonnes of milk powder per year in the early 1950s. Programs like this one, with
similar policy orientations, may prove to be suited for dairy development in India.
Only in India have substantial advancements in dairy farming been made this century.
Since it is now viewed as a strategic role to provide a company an edge over its
rivals, logistics has grown to be one of the most crucial aspects of all businesses.
Agriculture, like all other businesses, uses logistics solutions in their supply chain to
lower chain costs and further increase business efficiency overall. The cost of the
product, which in some situations can account for 25% of the final price, is influenced
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by a number of logistics operations, one of which is transportation. The amount of
milk collected by a dairy company has a big impact on how well the business does
overall. Being the first step in the manufacturing process, a subpar milk collection
will put the entire chain in danger.
Supply Chain Management
Transport and payment to the farmer for the milk are the two costs that make up the
price of milk. Any increase in the price per litre paid to the farmer must be offset by a
decrease in the cost per litre of collecting the milk because the dairy has limited room
to enable the overall cost to rise. An effective transportation system may enable
farmers to sell their milk for a higher price, which may in turn draw greater volumes
and further scale economies in milk collecting.
Dairy companies have continually tried to implement cost-saving measures since a

decrease in transportation costs can increase the price per litre that a dairy can offer its
farmers.
They have included introducing collection vans with more capacity and giving
drivers the option of working longer shifts. Schedulers manage milk collection at
dairies.
The primary problem for the dairy industry is unquestionably raising milk output
to meet the rising demand brought on by the practically inevitable population growth
and presumably rising income. Policies should be formulated in a less cost-focused
manner to address this difficulty. The development of the dairy industry depends on
the use of appropriate technology for production, procurement, processing, and
transportation.
Dairies are primarily being developed to deliver milk to consumers at the lowest
cost possible and give the unemployed rural poor a viable second job to order to
deliver milk to consumers at the lowest cost possible and to give the unemployed rural
poor a viable second job in order to increase their earning potential.
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In an integrated manufacturing process known as a supply chain, raw materials are
transformed into finished goods before being shipped to customers. At its highest
level, a supply chain is comprised of two basic, integrated processes:
 The production planning and inventory control process,
 Distribution and logistics process.
The manufacturing and storage processes, as well as how they interact, are all
included in the production planning and inventory control process.
Production planning is more specifically the design and administration of the

complete manufacturing process. The term "inventory control" refers to the planning,
implementation, and management of the policies and practices for storing raw
materials, inventories of work-in-progress, and typically finished products.
The retrieval and delivery of goods from the warehouse to the merchants are
governed by the distribution and logistics procedure. These goods may be delivered
straight to retailers or may be moved to distribution centres before being delivered to
merchants themselves. The management of inventory retrieval, transportation, and
delivery of the finished product are all included in this process.
A supply chain that is integrated is the result of the interactions between these
operations. The way in which these procedures are designed and run determines how
well the supply chain functions as a whole to achieve necessary performance goals.
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With a daily production of 14.5 million litres of milk, Tamil Nadu is among the top
states in India. The trustworthy location to purchase milk is in the "Aavin" store,
where it directly from the villages, and it is gathered up and put through several
processes to preserve and efficiently give it to the client. The market is mushrooming
with new milk brands every day, indicating the high demand for milk. It is not without
issues, such as the addition of formalin and other chemicals to milk to make it thicker
and more viscous, as well as adulteration in the form of soap, acid, starch, table sugar,
glucose, white paint, and refined oil.
Vision
Aavin vision is as follows:
 To meet forward with a missionary zeal this will make Aavin a trailblazer of
exemplary performance
 and achievements beckoning other Milk Federation in the country in pursuit of

total emulation of its good deeds.
 To ensure prosperity of the rural milk producers who are ultimate owners of
the Federation.
 To promote producer oriented viable cooperative society to impart an impetus

to the rural income,
 dairy productivity and rural employment.
 To bridge the gap between price of milk procurement and sales price.
 To develop business acumen in marketing and trading disciplines so as to

serve consumers with quality
 milk, give a fillip to the income of milk, producers.
 To complete with MNC‟s and Private Dairies with better quality of milk and
milk products and in the
 process sustain invincibility of cooperative.
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Mission
Aavin mission is as follows:
 “Heralding economic, social and cultural prosperity in the lives of our milk
producer members by
 promoting vibrant, self-sustaining and holistic co-operative dairy development

in Tamil Nadu state”
1.2 PROBLEM DEFINITION
Tamil Nadu cooperative milk producers’ federation Ltd., which sells milk and milk-
related goods under the trade name "Aavin," has collaborated to create Aavin milk.
Given that it is state-owned, it guarantees the quality of the items it serves by
purchasing them directly from the villages and distributing them to customers through
a variety of methods, including packing, chilling, freezing, etc. Milk needs to be
transported immediately and without delay because it is highly perishable by nature.
The study addresses the topic of “A study on effectiveness of Supply chain
Management from the retailers perspective in Aavin at Vellore district”. This study is
carried out in Vellore district.
1.3 OBJECTIVES OF THE STUDY
 To study the effectiveness of supply chain management from retailers’

perspective in Aavin at Vellore District.
 To study the retailer’s satisfaction towards distribution of Aavin milk and the
problem faced by them.
 To study the effectiveness of on-time delivery of the Aavin milk products.
 To study the success of wastage reduction of the Aavin milk products.
 To offer suggestions to improve the supply chain management at Aavin.
1.4 SCOPE OF STUDY
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I have started this project to know about the sales accepts of Aavin situated at Vellore.
I have attained a lot of information which includes production, sales, profit, loss etc.
In this project I also took effort to know about the Retailers perspective in
development of packing and on-time delivery.
The study main purpose is sufficient measurer to increase the on-time delivery,
wastage reduction and decrease the damage of the product while distributing to
retailers of Aavin milk products at Vellore district. The time period of study was 45
days. The population size was 288 retailers in Vellore district.
1.5 LIMITATIONS OF THE STUDY
 The sample was restricted to Vellore district only.
 The sample size was limited to 120 respondents only.
 The period of study is one month only.
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COMPANY PROFILE
Industry Overview
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Frontage of the company
Milk has been an integral part of Indian food for centuries. It is estimated that around
20% of the total milk produced in the country is consumed at producer-household
level and remaining is marketed through various cooperatives, private dairies and
vendors. Also, of the total produce more than 50% is procured by cooperatives and
other private dairies. While for cooperatives of the total milk procured 60% is
consumed in fluid form and rest is used for manufacturing processed value-added
dairy products; for still, several consumers in urban areas prefer to buy loose milk
from vendors due to strong perception that loose milk is fresh. Also, the current level
of processing and packaged milk. The preferred dairy animal in India is buffalo unlike
the majority of the world market, which is dominated by cow milk. As high as 72% of
the total population, whereas the urban sector with 28% population consumes 56% of
total milk produced. Even in urban India, as high as 83% of the consumed milk comes
from the unorganized traditional sector. Presently only 12% of the milk market is
represented by packaged and branded pasteurized milk, valued at about Rs 8000
crores. Quality of milk sold by unorganized sector however is inconsistent and so is
the price across the season in local areas. Also, there vendors add water and caustic
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soda, which makes the milk unhygienic. India’s dairy market is multi-layered. Its
shaped like a pyramid with the base made up of a vast market for low-cost milk. The
bulk of the demand for milk is among the poor in urban areas whose individual
requirement is small, maybe a glassful for use as whitener for their tea and coffee.
Nevertheless, it adds up to sizable volume – millions of liters per day. In the major
cities lies an immense growth potential for the modern sector. Presently, barely 778
out of 3700 cities and towns are served by its milk distribution network, dispensing
hygienically packed wholesome, quality pasteurized.
Company Overview
Company Logo
Type State Government Cooperative
Industry Food processing FMCG
Predecessor Tamil Nadu Dairy Development Corporation Limited
Founded 1958 in Tamil Nadu, India
Headquarters Chennai, Tamil Nadu
Company Status Active
Website www.aavinmilk.com
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Aavin is a milk product brand name of Tamil Nadu Co-operative Milk Producers’
Federation Limited. It is an Indian dairy company, which headquarter is in Chennai,
Tamil Nadu, India. TCMPF manage the activities such as milk procurement,
processing and marketing of the milk and milk products.
The company formed as an apex body of three tire cooperatives set up in Tamil Nadu
and the district level milk producer unions. The Foundation of the Milk Co-operative
Movement lies in the conviction that country’s socio-economic development is
intertwined with the development of rural India. The company has taken various
measures such as payment of attractive procurement price to milk producers, huge
investment in dairy infrastructure at all levels starting from Primary Dairy Co-
operative Societies, to State level Federation.
Establishment
Aavin was established in 1972. In 1972, the company set up first dairy plant in
Chennai. In 1981, the company developed ‘Anand’ pattern by Dr. Kurien. In 2021-
2022, the per capita availability of milk in Tamil Nadu has increased from 362 gm/day
in 1993-94 to 268 gm/day in 2021-2022, due to increase in Milk production, the rise
in per capita income, changing life style, food habits and export opportunities
contributed to the rise in the demand for milk and milk products. The company
expand the organization in all over the world and providing best quality of milk
products with customer satisfaction.
 Ambattur – Product Dairy
 Madhavaram – capacity of 3 LLPD
 Ambattur – capacity of 4 LLPD
 Sholinganallur – capacity of 4 LLPD
Products
 Beverages
 Fermented products
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 Hot milk
 Ice cream
 Milk products
 Sweets
Aavin Products
Milk Products of Aavin
 Full Cream Milk (6% fat)
 Standardized Milk (4.5% fat)
 Toned milk (3% fat)
 Doubled toned milk (1.5% fat)
Full Cream Milk
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Product Description
Aavin Premium, Full Cream Milk, Pasteurised, Homogenised is hygienically

produced and made from Aavin fresh milk
Packaging 500 ml
Ingredients Milk solids
Added Preservatives No preservatives added
Shelf life/Keeping Quality Use By Date (See the Stamp)
Storage Condition Store under refrigeration below 4 degrees Celsius
Product Application Ready to boil and eat
Product Features Pure and fresh
Available in Available in Tamilnadu
Web site www.aavin.tn.gov.in
Prices (500 ml) Rs. 30.0
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Nutrient facts
Fat 6g
Solids not fat 9g
Protein 3.4 g
Carbohydrate 4.9 g
Minerals 740 mg
Energy value 90 kcal
Standardized Milk
Product Description
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Aavin Green Magic, Standardised Milk, Pasteurised, Homogenised is hygienically
produced and made from Aavin fresh milk.
Packaging 225, 500 ml, 5 L
Prices 225ml Rs. 11.0
500 ml Rs. 22.0
5L Rs. 210.0
Nutrient facts
Fat 4.5 g
Solids not fat 8.5 g
Protein 3.2 g
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Carbohydrate 4.7 g
Minerals 700 mg
Toned milk
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Product Description
Aavin Nice, Toned Milk, Pasteurised, Homogenised is hygienically produced and

made from Aavin fresh milk.
Packaging 500 ml,1000ml
Shelf life/Keeping Quality USE BY DATE (SEE THE STAMP)
Storage Condition Store under refrigeration below 4 degrees

Celsius
Prices 500 ml Rs. 20.0
1000 ml Rs. 40.0
Nutrient facts
Fat 3g
Solids not fat 8.5 g
Protein 3.2 g
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Carbohydrate 4.7 g
Minerals 700 mg
Doubled toned milk
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Product Description
Aavin Diet, Double Toned Milk, Pasteurised, Homogenised is hygienically produced

and made from Aavin fresh milk.
Packaging 500 ml
Prices (500 ml) Rs. 18.5
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Nutrient facts
Fat 1.5 g
Solids not fat 9g
Protein 3.4 g
Carbohydrate 4.9 g
Minerals 740 mg
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REVIEW OF LITERATURE
A comprehensive examination of research and non-research studies on numerous

dairy industry-related topics at the national and international levels has been
conducted, and the relevant and chosen papers are presented below as a literature
review.
Abby Bauer (2019) in her article, she discusses her opinions about the dairy
industry's usage of modern technology, including robots that are used to maintain
dairy farms, track cow activity using technology, and diagnose sick cows earlier so
that treatment may begin. According to the study, technology cannot replace people
because they have a greater understanding of cows and innate learning abilities.
Krista Kuzma (2019) his paper focuses on the challenges faced by US dairy farmers
in terms of labour shortages, farm upkeep, technological utilisation, and the
development of dairy farms. The study suggests that in order to make money from
dairy farming, dairy producers have advanced and improved their management skills.
Jon (2017) in their study, the authors sought to examine the potential of the
Vietnamese dairy industry through in-depth analysis of the powdered milk market,
customer preferences, and market trends. On the basis of these findings, the authors
proposed appropriate business expansion strategies for the company. According to the
survey, powdered milk product consumption is on the rise in Vietnam, a country with
a very active market. Also, there is currently a good market for innovative goods that
are lactose-free and powdered milk-free. The report strongly advises adding this
attractive market to the product portfolio.
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Ravi pappu, Pascale G.Quester (2016) in their study examine how consumer’s
perception of innovativeness affects consumer brand loyalty. For the investigation
data were collected from sample of respondents on convenience sampling method and
results was interpreted through structural equation model. It is observed from this
study that consumer’s perception of innovativeness made a good impact on intangible
assets of the company such as brand loyalty and brand performance.
Quang and Trinh (2015) their research was specifically focused on the powdered
milk market, customer purchasing patterns, and product interests in order to better
understand the potential of the Vietnamese dairy industry and provide the company
with useful information for future business expansion plans. The study found that the
usage of items made from powdered milk is growing quickly in Vietnam. New
powdered milk products and goods free of lactose are also in high demand these days.
The analysis strongly suggests extending its product line to this attractive market.
Cleopatroveloutsou (2015) highlights in his study that brand trust, satisfaction and
attitude towards the brand contribute more for the development of brand loyalty. For
this study the researcher collected data from 189 women’s and they were asked to
answer the questionnaire keeping in mind of their preferred brand. This study
revealed that strength of consumer brand relationship is a very strong predictor of
brand loyalty.
S Rajeshwaran (2014) in his study in terms of consumption and output, intra-state

and inter-state levels differ greatly from one another, making it highly challenging to
compare them. This is a problem that has been explored at the national level.
Therefore, it is essential to conduct state- and region-specific analyses of the solution
to the issue of insufficient milk supply from the perspectives of resources, debt,
technology, information, input, risk-coverage mechanisms, institutions, and outputs.
Policymakers would thus be able to make well-informed decisions that were
appropriate for the local environment, fostering conditions that would encourage dairy
farmers to enhance productivity as well as the number of female cows.
Zsanett Sebesy (2014) in his study on "Consumer Customs and Corporate Marketing
Strategies on the Market of Functional Dairy Products," discusses the synthesis of
opinions of those players who stand for the supply and demand side of the market for
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functional dairy products, which can help fully understand consumer attitudes and
expand the market for these products. Consumer perceptions of functional foods and
functional dairy products vary greatly. According to the study's findings, greater
emphasis needs to be placed on developing public awareness through various
educational initiatives related to useful items. The studies showed that such an
effective marketing strategy, which could promote the use of functional dairy
products, cannot be realised without distinct understanding of customer sentiments.
Nguyen Yen Nhi (2014) in his study, "An Update on the Milk Market in Vietnam –
Lactose-Free Dairy Opportunity," the author talks about the dairy industry in Vietnam,
which is a vibrant field that has had consistent growth over the last 10 years. In order
to determine whether there is a need for lactose-free dairy products on the Vietnamese
market, it focuses on an update of the dairy market in Vietnam, including the present
state, major players, and variables impacting consumer habits. The study comes to the
conclusion that milk customers' decisions in Vietnam are significantly influenced by
western brand-oriented psychology. The main dairy products sold in Vietnam include
powdered milk, liquid milk, fermented milk products, condensed milk, and soy milk.
Abbott, Vinamilk, and Vinasoy are the leaders in the liquid milk, fermented milk
product, condensed milk, and soy milk sectors, respectively. Abbott is the leader in
the powder milk market. Adults from non-milking regions, such as Vietnam, suffer
lactose mal-absorption, and Vietnam can participate in the booming Asian lactose-free
dairy market.
Hu Chen (2013) the author of "A Systematic Analysis of the Market Potential of
Foreign Infant Powdered Milk Brands in China" talks about the controversy
surrounding Chinese infant milk powder products. Consumers' trust in domestic
brands has been eroding over time, which presents an excellent opportunity for
foreign milk powder brands to enter the Chinese market. The main goal of this study
was to assess and evaluate the market potential for foreign-branded milk powder in
China. The study's findings suggested that the Chinese milk powder sector had
developed quickly. The development of the Chinese milk powder business, however,
is still lagging behind the overall level of the global milk powder industry in terms of
the whole milk powder market. In the meantime, the growth of these markets would
open up new market prospects for producers of infant formula, particularly for
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international brands. The market share of domestic brands would suffer greatly if
online marketing channels developed.
Shruti Vatrana (2013) her study involves qualitative research on the different
branding strategies used by AMUL. The research findings imply that ghee is the only
traditional milk product that is being marketed under a brand name.
Jothi Mary (2013) performed research on Aavin Milk's Trichy-based consumer

behaviour. The marketer can better define consumer wants by adopting a consumer-
oriented mindset. The goal of the current study is to identify the variables influencing
consumers' perceptions and purchase behaviour when purchasing Aavin milk.
Appropriate recommendations were made to marketing environment influences like
competitors, who occasionally affect consumers' perceptions and behaviour. If efforts
were made to keep up the current level, the market for Aavin milk would be healthy.
Arul and kannan (2013) authors explain in their study how customers in Salem City
have changed their preferences for milk brands. Although if the costs of all branded
milks are comparable, some buyers nevertheless favour a particular brand. It can be as
a result of the brand-name milks' advertised pricing, quality, or service. An
organisation must make enough money from the sales of its goods to pay its bills and
turn a profit that is both reasonable and sufficient. So, it is desirable for firms to
participate in programmes that can influence consumers' decisions to purchase their
products given the significance of sales for business survival and the link between
customers and sales.
Merlin Sealer Sing (2013) according to his study, "Essential and Commercial Nature
of Aavin Milk in Tamil Nadu with Special Reference to Kanyakumari and Coimbatore
Districts," the brands "Aavin Milk" and "Aavin By-Products" are very well-known
among consumers in part because they are produced without adulteration and are also
recommended by medical professionals to patients. 74% of respondents in the
Kanyakumari district agreed that there is a very high and 22% a high demand for this
product. Yet, in the Coimbatore district, 73% of respondents claim that there is a
strong demand for milk and by products, while 13% claim that there is an extremely
high demand.
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Babu (2013) in his work, "Comparative Analysis of Distribution Cost of Milk and
Milk Products in the Organized Sector of Tamil Nadu," it was discovered that the
private sector's costs for distributing milk and milk products in Salem District, Tamil
Nadu, were investigated. While the private dairy plant had lower distribution costs for
toned milk, standardised milk, full cream milk, ghee, and Skim Milk Powder, the
cooperative dairy plant had lower distribution costs for butter alone. Compared to the
cooperative dairy plant, the private dairy plant spends less on personnel salaries and
transportation costs.
Arora Shweta (2013) in his study "Economics of production and sale of milk
products in cooperative sector," the author stated that the research was done in the
U.S. Nagar district's Rudrapur and Khatima blocks. The two milk products that were
the subject of the cooperative sector's study were ghee and paneer. In order to appeal
to consumer tastes, the cooperative sector should give customer-oriented market
research and development more attention. Cooperative milk product manufacturers
are experienced at sales and distribution levels.
Edhayavarman (2012) according to the author of the study "Economic analysis of

production and marketing of milk in Tamil Nadu: with special reference Madurai
district co-operative milk producers' union LTD," the dairy industry has a lot of
potential to provide the vast majority of the rural poor with a stable source of income.
The WTO's new trade regime's liberalisation of international trade in dairy products
presents fresh difficulties for the sector while also creating new export prospects.
India's dairy industry has to strengthen its competitive economic edge in dairy
products in terms of both quality and cost as well as its reputation in foreign markets.
DeepaIngaval and Thakar (2012) conducted research on consumer preferences for

milk and milk-related products. Their study's goals include determining consumer
preferences for milk and milk products, determining the factors that influence how
often consumers make purchases, and determining the most popular locations to make
purchases. The survey found that from 1991 to 2006, consumers favoured packaged
milk and milk products with well-known brands. Marketing elements such product
availability, advertising, product quality, and price all had a role in the shift in buying
choice. It was also discovered that grocery stores, bakeries, and sweet markets were
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the most popular locations for purchasing dairy goods, however some customers
preferred to buy from corporate outlets and milk buyers.
Silva et al., ((2012) in their study entitled "Consumer Perceptions on Quality

Attributes of Liquid Food Products: An Empirical Analysis Based on Urban
Households," the authors empirically examine urban consumers' perceptions of four
liquid food products: bottled water, pasteurised milk, ready-to-drink fruit juices, and
carbonated beverages. These four products are: ready-to-drink fruit juices, ready-to-
drink fruit juices, and liquid food products. Due to the issue's multidimensionality, the
Perceptual Mapping Technique, which is covered in detail in the Multidimensional
Scaling multivariate data analysis approaches, was used to estimate and map the
differences in customers' similarity evaluations of the quality attributes.
Violet Lazarevic (2012) reveals that through integrated marketing communications

branding strategies, celebrity endorsement the company can increase the perceived
congruence between the generation Y consumer and the brand. And also found that it
is essential to generate a positive relationship with the leading brand and to improved
brand loyalty.
Wognum (2011) examined "Systems for Sustainability and Transparency of Food

Supply Chains - Present Status and Challenges". The study found that consumers are
becoming more interested in learning about the safety of their food, where it comes
from, and how sustainably those processes work. The study examined the existing
state of information technology to enhance communication with crucial stakeholders
and sustainability in food supply chains. The study, in particular, evaluated existing
organisational and technical solutions and advancements that seek to retrieve and
offer information to consumers and decision-makers on sustainability and
transparency issues.
Guan and Philpott (2011) they applied multistage stochastic programming to a

production planning issue for Fonterra, a major player in the New Zealand dairy
sector, in their work "A multistage stochastic the programming model for the New
Zealand dairy industry," taking into consideration contracting, price-demand curves,
and an uncertain milk supply. The study also provided models for the Fonterra supply
chain and an uncertain milk supply. The article also offers a decomposition algorithm
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and a multistage stochastic quadratic programming model to calculate an ideal sales
policy, which is contrasted with a deterministic policy in simulation.
Tewari Poonam (2011) as per his study, which was titled "A Study of Opportunities
Extended to Dairy Women Entrepreneurs Under Women's Dairy Development
Scheme," dairying is a viable source of income for landless families and small,
marginal farmers because it can be managed with the help of both family labour and
readily available crop residue. Furthermore, it gives their families a consistent source
of cash and food. Women are crucial to the management of dairy businesses. The
majority of dairy business owners had obtained entrepreneurial training, which they
regarded essential for managing the company. A significant portion of dairy business
owners received enough help from institutions. The establishment of milk
cooperatives and the elimination of middlemen, which allowed the dairy
entrepreneurs to sell their produce to the cooperative directly, were the main
marketing facilities disclosed by the dairy businesses.
California Milk Advisory Board (CMAB) (2011) carried out research on consumer
desire for milk with greater solids levels. The goal of the study was to learn what
consumers thought of fluid milk with added nutrients. According to the study, 86% of
consumers said they would go for the milk with higher nutrition. When asked how
much they would be willing to pay for milk with improved nutrition, adults answered
that they would be willing to spend an extra $1.74 on average. In order to explore
consumers' nutritional dairy product needs, a number of new channels have been
introduced, and retailers play a significant role in the process overall. Also, the study
demonstrates that customers would be willing to pay more for milk with improved
nutrition because they not just appreciate it more generally. Milk with improved
nutrition is a new avenue for potential income increase for retail dairy cases. Both
customers and stores benefit from the scenario.
Nidhyananth and Sugapriya (2011) the goal of their study, "An Overview of
Consumer Behaviour of Aavin Milk with Reference to Erode District," was to
ascertain how consumers behaved towards Aavin milk products and how they felt
about using the service. The study primarily focuses on aspects like product quality,
consumer preferences, cost, level of service, and consumer attitudes and experiences.
In this study, consumer information is gathered by a questionnaire (interview
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schedule). Convenience sampling is used to pick 100 samples. 100 consumers were
personally interviewed using the planned interview schedule, and their opinions were
gathered.
Singh (2010) according to the study "Understanding Value Added in Indian Dairy
Sector: Some Views," milk production in the Indian dairy industry increased
dramatically, from 17 million tonnes in 1950–51 to 112 million tonnes now (2009–
10). A number of government policy measures have helped society go from a state of
shortage to one of sufficiency. The growth rate of value-added products was
determined to be 0.93 percent per year in the first phase of "Operation Flood," but
9.10 percent per year in the third.
Anjani Kumar (2010) according to his studies, "Milk Marketing Chains in Bihar:
Implications for Dairy Farmers and Traders," landless, marginal, and smallholder
farmers dominate the milk production industry. It has been noted that direct sales from
manufacturers to customers continue to be preferred and play a significant role. The
study also indicated that milk market agents, the majority of whom were working on a
modest scale, could benefit from informal raw milk trade and processing. Trading and
processing done informally might be profitable commercially.
Martin (2010) according to the author of a study on dairy marketing in Sweden, from
the early 1920s on, Sweden became well recognised for its exceptional dairy product
marketing, which promoted the use of milk, butter, cream, and cheese. A group in
Sweden was in charge of the dairy marketing project. The findings showed that the
campaign for better milk and greater consumption had two main messages: one
challenged farmer to work towards better milk quality, and another attempted to draw
consumers in by mentioning quality and hygienic standards, nutritional benefits, taste,
and worth. According to the research, dairy products' quality and cleanliness were
employed as selling points.
Daniel (2009) his study concentrated on how American agriculture policy is

frequently built on relationships and conflicts within a certain production region.
Urban and rural groups, for example, were crucial. Due to milk's importance as a
nutrient-rich but extremely perishable food, urban groups showed a particular interest
in its production and management. Cooperatives were formed by rural communities as
28
a response to urban attempts to dominate agricultural methods. According to the
research, the group approached the US Department of Agriculture (USDA) with a
marketing plan that eventually gave rise to the federal milk marketing programme.
Haese (2009) examined the effectiveness on dairy farms in the Indian Ocean-based
Reunion Island, a French overseas territory. The French and local governments are
promoting dairy farming on this island with financial and technical assistance from
the European Union in an effort to reduce reliance on imported milk powder and dairy
products and generate employment. According to the study, farmers who were on the
efficiency frontier produced more milk per cow and used more land than those who
were less efficient. It is necessary to create a policy that encourages better use of the
land on ineffective farms through on-farm tactics and enhanced feeding systems.
Peter Enderwick (2009) analyses the case of dairy goods tainted with melamine as
the "quality failure" issue in China. In order to determine how to reduce the
possibility that such issues may arise, the study looks at whether it is possible to
predict the incidence of quality fading. According to the study, it is possible to predict
quality and safety issues, and it identifies the main environmental factors in China that
contribute to the issue of quality decline. It also examines the three main forms of
transaction governance, including contracts, hierarchy, and trust. In contrast to many
industrialised economies, the dairy business is extremely fragmented, politicised,
ineffectively regulated, and characterised by corrupt and opportunistic behaviour.
These factors, as well as local operational conditions, shed light on the dairy industry.
Reddy and Muniraju (2009) According their article "Creating brands by helping
others win," a company's brand is how it distinguishes its goods and services from
those of its rivals. Since consumers prefer to purchase goods with a strong brand and
are likely to become devoted customers, a strong brand enables a business to charge
premium prices for its goods or services. The development of brands is crucial in the
age of globalisation. Few businesses consider how their business model may help
others win as well throughout the branding phase. Nearly all company organisations
will soon need to work on developing their brands by assisting others in winning.
Nicholson kaiser (2008) discovered in their investigation that milk processors and
dairy farmers engage in extremely profitable generic dairy advertising. The
29
connection between changes in demand brought on by advertising, milk supply
response, and price variations is one of their study's key conclusions. The more
general conclusion is that general marketing campaigns for dairy products will be
more successful if they raise consumer demand for all dairy products proportionate to
the makeup of raw milk.
Rhone et al., (2008) analysed and looked into the factors that affected farm milk price
(FMP), farm milk revenue (FMR), and loss in FMR for dairy farms in the Central
region of Thailand. These factors included farm location, farm size, month of the year,
and milk pricing method. Findings indicated that Farm Milk Price (FMP) in Pricing
System 1 was lower than in Pricing System 2 (P 0.05). In both pricing schemes, the
majority of small farms had milk prices that were higher (P 0.05) than those of
medium and large farms. Due to reductions in bacterial score and Bulk Tank Somatic
Cell Count (BTSCC), large farms had greater milk revenue losses than small and
medium farms.
Doyon et al., (2008) have observed and speculated that the market dominance of
retailers as well as significant expansion in milk output due to reduced cost of
production in Southwest states are placing significant pressure on prices on New
England dairy farmers. According to the study, there is a sigmoid demand relationship
for fluid milk, which presents state lawmakers with a chance to assist dairy producers
in the northeast in gaining a higher proportion of consumer spending through a variety
of policy alternatives. Consequently, the status quo, price gouging, supply control,
fair share policy, and chain excess return are 5 milk market channel regulation
techniques that are reviewed and contrasted. According to the results, the supply
control mechanism was discovered to be the most successful at allocating the chain
excess, connected to the sigmoid demand connection for fluid milk, to dairy
producers.
Kedija Hussen et al., (2008) according to their journal, Ethiopia has the greatest
population of ruminant cattle in Africa, but production has lagged and the animals'
economic impact on the country is less than it could be. Ethiopia's entire milk
production system can be broadly categorised as either semi-urban or urban dairy
production systems, mixed crop-livestock systems, or pastoral and gropastoral
systems. Goats, cattle, and camels are the primary agricultural animal species that
30
produce milk. The primary food and income source is milk. According to the findings,
cattle dominate the population, followed by camels, goats, and sheep.
Woldemichael Somano (2008) the author of the case study "Dairy Marketing Chains
Analysis: The Case of Shashemane, Hawassa and Dale District's Milk Shed, Southern
Ethiopia" outlines the goals of evaluating dairy marketing chains in the milk sheds in
Hawassa, Shashemane, and Yergalem. The two key dairy goods marketed in the
regions were milk and butter. The outcome suggests that the technology gaps in dairy
production and the issues with marketing should both be addressed by initiatives for
dairy development. Additionally, it advises that in order to enhance dairy production
generally and dairy marketing, proper attention should be paid to the establishment of
dairy processing enterprises, dairy producers and trader cooperatives, and improved
service accessibility.
Stefan Seuring and Martin Muller (2008) The authors of the study "From a
literature review to a conceptual framework for sustainable supply chain
management" present two opposing viewpoints. It begins by providing a survey of the
available literature on sustainable supply chain management, taking into account 191
publications that were published between 1994 and 2007. It also provides a
conceptual framework with three elements that encapsulates the research in this area.
Related triggers are first identified as a starting point. Due to this, it is possible to
present two unique strategies: supply chain management for sustainable products and
supplier management for risks and performance. It is obvious that environmental and
sustainability issues continue to dominate research. Integration of the three
sustainability pillars as well as social issues is still uncommon.
Jonathan Linton (2007) the study "Sustainable Supply chain: An introduction"

looked at how supply networks and sustainability are interconnected. By doing this,
the emphasis on environmental management and operations shifts from the local
optimisation of environmental aspects to taking into account the entire supply during
the manufacture, consumption, customer service, and post-disposal disposition of
products. The investigation came to the conclusion that academic research on
sustainable development is rich, is still in its infancy, and has the ability to influence
future governmental policy, existing industrial processes, and find new business
models.
31
Denford and Edward (2007) believed that developed countries are still lagging
behind when it comes to the adoption of branding as a technique for managing
markets. In Chitungwiza and Harare, urban marketplaces in Zimbabwe, this study
sought to determine the degree of brand awareness and the variables influencing
brand preference for dairy products. The results show that four variables—promotion,
price availability, appealing packaging, and product quality—were recognised as
major influences on consumers' decisions about dairy products.
Cuthbert and Pamela (2007) their article "Raw milk production in Canada"
concentrated on the fact that it is forbidden to produce raw milk in Canada unless one
has their own cow. The results show that quality in soil, feed, and breeds, not
pasteurisation, should be the starting point for safety.
Hasan Cicek (2007) in his article, he looked at the technological and socioeconomic
variables that can have an impact on dairy business costs. The annual production
records of 77 dairy businesses operating in Western Turkey were analysed in this
context. According to the research, technological and socioeconomic aspects were
found to have a significant impact on lowering manufacturing costs and boosting
business profitability.
Gorton et al., (2007) in an article titled "Dairy Farming and Milk Marketing
Relationships in the Commonwealth Independent States (CIS)," this topic is covered.
The findings of an international study of 916 dairy farms in Armenia, Moldova, and
Ukraine are presented by a group of agricultural economists from the West and the
CIS. The emphasis on supply chain relationships and milk marketing is a reflection of
how important these factors are in determining the wellbeing of farmers. The results
show that 20 sizes, milk outputs, investment activities, prices, sales to processors, and
assistance from purchasers are accorded great value.
Wiley and Andrea (2007) About the article "Transforming Milk in a Global Market"
in the American Anthropology journal. In the past, countries with sizable populations
with European ancestry were the only places where large-scale milk production and
consumption took place. The consumption patterns around the world have changed,
with Asia seeing substantial growth and Europe and countries with a European
heritage seeing flat or declining consumption. According to the findings, milk has just
32
begun to be promoted as a food that helps people lose weight in the US. Milk has
been able to establish a global presence and maintain relevance in areas whose
consumption has been dropping by consistently evolving and redefining itself as a
special food with qualities able to allay the health concerns seen to be most important
at the moment.
Statistics (2007) this book makes note of the fact that there are 30 districts served by
17 district cooperative milk producers' unions operating in Tamil Nadu. The highest
authority for 17 Districts is the Tamil Nadu Cooperative Milk Producers' Federation.
Milk Producers' Cooperative Unions. The milk cooperative system based on the
Anand Pattern has made it possible for producers to have fair and guaranteed markets
for their milk. The rural economic and technological change is significantly
influenced by milk cooperatives. The farmer benefits from primary dairy cooperatives
in terms of regular income, subsidised cattle feed, artificial insemination, cattle-health
services, subsidy for dairy building construction, milk tester, and training on scientific
feeding and breeding, which again ensures the income and employment of rural areas.
Sarathy (2007) conducted research on "A Comparative Study on Brand Preference of

Certain Fast Moving Consumer Goods Among Rural Consumers in Erode and Salem
Districts." According to the report, rural consumers have a significant affinity for
particular FMCG brands. Companies that want to reach the rural market should
therefore spend more time and money on developing their brand preference while
keeping in mind low penetration price, effective promotional strategies, value-for-
money products, and the need to have a wide distribution network.
Wikipedia encyclopedia (2006) dairy milk is described as an opaque, milky liquid

produced by mammals' mammary glands (including monotremes). Before they can
digest other types of food, it serves as the main source of sustenance for young
mammals. Colostrum, the first milk produced during breastfeeding, is what the infant
receives when the mother's antibodies are transferred to it. It can lower the baby's risk
of contracting a variety of disorders. Although the precise ingredients of raw milk
vary depending on the species, it contains large amounts of protein, calcium, saturated
fat, and vitamin C. Cow's milk is mildly acidic, with a pH range of 6.4 to 6.8.
33
Periyasami (2006) says that as a result of India having the lowest production costs
worldwide for a litre of milk in his paper titled "Milk production in India." As a result,
India will have a competitive edge to boost its export share in the dairy industry
globally. With 15% of the world's cattle population, India's dairy industry can afford
to take an aggressive stance because it is one of the least subsidised sectors in the
world. In terms of global milk production, India comes in first. With 84 million tonnes
of milk produced in 2001, India surpassed all other countries as the world's top
producer.
Derk Loorbach and Jan Rotmans (2006) in their research project titled "Managing
Transitions for Sustainable Development." In order to meet the challenge of
sustainable development, our society will need to make long-term structural
adjustments or transitions in industries including energy supply, transportation,
agriculture, and health care. The numerous disciplines addressing distinct facets of
transitions and system innovations can be connected by the transition framework.
Yue Yaguchi and Kei Kajisa (2006) has highlighted that it was once widely believed
that India's agricultural development since the late 1960s had been greatly accelerated
by both the white and green revolutions in the dairy and crop sectors. According to the
findings, the white revolution in the 1980s was made possible by the increase in
fodder production that was a by-product of the green revolution in the 1970s, and the
increased availability of manure that resulted from the white revolution has since
helped revive organic farming as a system for sustainable agricultural development.
Frank et al., (2006) has noted that a number of recent articles have discussed either
the supply or demand patterns for dairy products in China due to the country's dairy
industry's explosive growth. It offers a methodical justification for the current rise in
dairy product demand and supply. The purpose of this article is to construct a more
complete picture of the Chinese dairy industry and to predict how it will change over
the next few decades. The research identifies the sources of milk production increase
and weighs the respective contributions of production size expansion, production
nature changes, production technology advancements, and production efficiency gains
to the total growth of milk production.
34
Landi and Heather (2006) discuss beverages that utilise dairy and soy components
and can satisfy customer desires for functional and nutritional benefits in the article
"Dairy and Soy Innovations." These components are bringing more functional
beverage options to consumers, ranging from protein waters to fortified milk. The
study finds that dairy and soy ingredients are now more adaptable than ever because
to recent advancements in processing and ingredient technology.
Yanning Peng et al., (2006) the study found that consumers are becoming more
aware of the connection between nutrition and health, and they are particularly
interested in functional body parts that claim to improve health and lower the risk of
diseases. Milk, a great source of important nutrients and a perfect vehicle for health-
promoting substances, shows promise for the growth of a functional body. Several
functional milk products, including yoghurt, milk, butter, and cheese enriched with
vitamins, minerals, and omega-3 fatty acids, have been introduced to the market. Milk
naturally contains conjugated linoleum acid (CLA), which lowers the risk of cancer,
heart disease, and obesity. The results show that the dairy industry can use the data
from this study to create marketing plans for CLA and other functional milk products.
McPeak et al., (2006) the journal focuses on the fact that market-based development
initiatives frequently create chances to gain money from items that were previously
produced and consumed within the household. Labour is frequently divided according
to gender and age within the home. If family production decisions are uncooperative,
market development initiatives to increase well-being may result in unexpected
results. The findings imply that household decisions are contested, with husbands
employing migration choices to oppose their wives' ability to market milk.
Ferraro and Emilia (2006) presented in a journal article titled "Culture and
Economy: The Case of the Milk Market in the Northern Ecuadorian Andes." That
non-indigenous mestizo people have traditionally controlled the milk marketing in a
Quichua region of Ecuador. The commercialization of milk has recently been
transferred to indigenous people due to changes in economic conditions. These people
leveraged their kinship ties to eliminate the need for middlemen and gain control of
the market. Together with socio-cultural changes in the villages and a shift in how
people view what the economy, fair trade, and market connections are, the economy is
changing at the same time. The research shows that there is a clear distinction
35
between market exchanges and traditional exchanges as expressed in the concept of
traditional reciprocity.
Edward et al., (2006) according to the author of the article, India is a compelling case
study because it produces the most milk globally and has the second-largest
population in the world. The main dairy production system in the nation is a
smallholder system, where the majority of the milk produced is consumed on the farm
or distributed through unofficial channels. This method of production, along with
Indian laws that support domestic production and forbid the import of dairy products,
leaves the Indian dairy sector with a lot of untapped potential.
Chandrasekar (2006) according to the author of the article "Milk output poised to
reach 100 million tonnes," the rise in milk production in India is being fuelled by both
a growing consumer demand for value-added milk products and massive supply-side
dairy development initiatives. Despite being the world's largest milk producer, India's
dairy industry has a relatively low level of economic integration, according to the
data.
Paul-Marie Boulanger, Thierry brechet (2005) research was done on "Models for
policy-making in Sustainable development." The need for policymakers to evaluate
the effects of their plans and initiatives on sustainable development is becoming more
and more common. Several modelling strategies will be evaluated in two stages: first
with regard to general criteria that are closely related to sustainable development, and
then with regard to policy issues (energy, land use, and transportation policies) taken
into consideration from a sustainable development perspective.
Jong Han Park Jae Kyu Lee and Jung Soo Yoo (2005) researchers looked at supply
chain management within the context of a Balanced Scorecard in their paper, "A
framework for creating the balanced supply chain scorecard." A framework for a
balanced supply chain scorecard was put forth in the article, taking into account the
literature on the BSC and SCM, SCM solutions, and product features.
Rene Kemp and Saeed Parto (2005) the study "Governance for Sustainable
Development: Moving from Theory to Practice" investigated and elaborated on the
fundamental components of sustainable development and governance, taking into
account how they have interacted during the previous 15 years. The best way to think
36
about sustainability is as an innovative process of adaptive change that is socially
imposed. The fundamental components of transition management that are connected
with sustainable governance. A conceptual framework for formulating policies and
performing actions targeted at advancing sustainability is the end outcome.
Suzuki and Kaiser (2005) underscores, in their perspective, the fact that dairy is
heavily controlled in many nations for a variety of reasons. Milk's perishability,
seasonal imbalances, and inelastic supply and demand can all contribute to market
volatility. The market power of milk buyers was often greater than that of dairy
farmers. Due to comparative production advantages, some nations have implemented
laws and policies to safeguard their domestic dairy farmers by keeping domestic
prices higher than global prices.
Jacques Somda et al., (2005) said that a number of issues, such as a lack of interest
on the part of decision-makers, ambiguous economic policies, and biotechnological
limitations, have long hampered domestic milk production. The home milk production
sector has been under development over the past 20 years in many emerging nations.
In the Gambia, smallholder milk producers are the subject of this investigation. The
research shows that the current milk production system is unquestionably workable.
Lack of updated technology at the farm level and inadequate institutional support are
two barriers to enhanced productivity. It has been demonstrated that milk production
delivers consistent profits despite its poor viability status, which may encourage most
farmers to expand their farming operations, particularly in places where there are no
financing programmes for buying agricultural inputs.
Isabelle and John (2005) they investigated and researched the Japanese dairy
markets in their study. It gives a broad picture of consumer demand and its
development following World War Two. They found economic, cultural, and
demographic factors that have been influencing consumption trends by using
historical data and econometric estimates of Japanese dairy demand. The analysis of
the dairy industry's regulatory framework demonstrates how the incentive structure of
the system has an impact on the long-term prospects of different business segments.
The study's proposals for reforming the Japanese dairy industry are included in its
conclusion.
37
Gatty and Bob (2005) the three-dairy department "megatrends" that are influencing
the health-conscious and/or pleasure-seeking dairy case consumer are
convenience/portability, health, and premium/self-indulgence, according to the
International Dairy-Deli-Bakery Association (IDDBA) industry trends report, What's
in Store 2006. Products that can distribute on two or more platforms, according to the
IDDBA report of these drivers will be on the successful path. The conclusion
indicates that the dairy department, one of the major locations for new product
introduction in the store, has a lot of potential for products to make an impression.
Campbell and Dan (2005) have discussed a national marketing firm in a publication
about a dairy conference. The recent dairy conference that took place in Syracuse,
New York, is the main subject of the article. In order to efficiently handle milk
shipments and distribute milk to end users, farmers should take advantage of the
Capper-Volstead Act and establish a national marketing organisation in common.
Young farmers saw potential futures in dairy production, particularly in Western New
York, and new opportunities in the cheese and fluid industries were addressed.
Dhar et al., (2005) the topic of "milk by any other name, consumer benefits from
labelled milk" were covered in the paper by the American Journal of Agricultural
Economics. The benefits of recombinant bovine somatotropin (rBST)-free and rBST-
free products for customers are examined in this article using their stated preferences.
labelled organic milk. The research uses data from U.S. grocery scanners to specify
and estimate a quadratic AIDS demand system model for several milk varieties.
Estimating consumer advantages that are broken down into two categories,
competitive and variety impacts, is done using the introduction of rBST-free and 16
organic milks. According to the findings, rBST-free milk offers consumers less of an
advantage than organic milk. The implications for current U.S. labelling rules were
applied in light of the findings.
Kubendran and Vanniarajan (2005) according to their study on "Comparative

analysis of Rural and Urban Consumers on Milk Consumption," the market for milk
is expanding as a result of the robust middle-steadily class's rising disposable
incomes. It should be mentioned that customer willingness and ability to purchase
determines the demand for milk and milk products. The consumption patterns of milk,
such as the quantity purchased, the method used to obtain it, the source from which it
38
was purchased, the preferred brand, etc., vary from consumer to consumer because
consumers are not uniform. The socioeconomic profile of the consumer, specifically
their income level, line of work, level of education, sex, age, and region, are the
primary drivers of their milk consumption habits.
Rajaprabhaker (2005) the author of "A Study on Consumer Preference of Aavin Full
Cream Milk in Kanyakumari District at Nagercoil Aavin Dairy" described the goods
and preparation techniques, focusing in particular on the full cream milk, in his study.
He discovered that more than 58 percent of people prefer full-cream milk, which is
why production rises every year.
Rama Prasad (2005) in his paper "Dairy industry - Milking the milk," has observed
that India may easily become a prominent exporter of milk and milk products
provided it increases the quality and productivity of milk. India is placed amidst major
milk deficiency countries in Asia and Africa. He added that there is a tonne of room
for the development of the dairy business in the nation because the average daily
consumption of milk in India is only 214 gms, compared to the global average of 303
gms.
Kiesel et al., (2005) discuss "Do Voluntary Biotechnology Labelling Matter to the
Consumer?" in the American Journal of Agricultural Economics. The Fluid Milk
Market Provides Proof. The impact of voluntary labelling for the usage of genetically
modified growth is examined in this article. Using information from grocery
scanners, hormone for retail fluid milk. Retail fluid milk is widely available, fairly
standardised, and provides for cross-sectional discrimination between labelled and
unlabelled products as well as between conventional and organic brands. It was one of
the first biotechnology products to receive approval. The findings show that voluntary
labelling raises consumer demand for milk devoid of recombinant bgh. However, it
appears that over time, the estimated effects of labelling have grown.
Rodwan and John (2004) there have been some expanding categories, such milk in
single-serve packaging and flavoured milk, but the U.S. milk business has struggled
to develop in recent years. Since 1998, there has been at least a 5.5 percent increase in
the volume of flavoured milk per year. Over the past few years, the market share of
single-serve products intended for quick consumption has steadily grown. Despite the
39
single-serve market's strength, it hasn't yet had a significant impact on milk's
performance in the convenience store channel as a whole.
Dang (2004) has examined the issues and potential for the Indian dairy industry's
future. Low milk yield was attributed to a lack of scientific milchig techniques,
insufficient fodder availability throughout the year, a lack of veterinarian health
services, and a dearth of high-quality dairy animals. According to the findings, India
has the potential to overtake other key players in the milk and milk product industries
as a result of its advantageous geographic position among major milk-deficit nations
in Asia and Africa.
Selvarani (2004) did a comparison of the cooperative milk producers' unions in the
districts of Coimbatore and Tiruchirappalli. It was discovered that because Aavin milk
is readily available and of guaranteed quality, consumers in both unions favour it over
other brands. The majority of customers in both unions said the pricing was fair and
the milk was of satisfactory quality. The conclusion reached was that the quantity of
milk purchased and reducing dairy unit overhead costs are essential for the dairy
business to operate effectively. The dairy industry should pave the way for the
emergence of the much-desired "white revolution" in the nation through its sensible
pricing policy, which allows an appealing margin of profit to the producers and also
brings milk within the grasp of the economically weaker parts.
Rajendran and Samarendu (2004) in their paper, the authors examine the current
situation of milk marketing and dairy cooperatives in India and offer suggestions to
address upcoming issues. The outcomes of according to the report, an unorganised
sector handles 80% of the milk produced by rural farmers, and an organised sector
handles the remaining 20%. It has been discovered that dairy cooperatives
significantly contribute to reducing rural poverty by increasing rural milk production
and marketing. The main factors limiting milk producers' ability to negotiate better
prices include the use of middlemen, a lack of infrastructural facilities for collecting,
storage, transportation, and processing, and a lack of bargaining strength on their part.
The research shows that India's milk marketing has hurdles in the future related to
milk quality, product development, infrastructure support development, and
international marketing.
40
Tang Yuankai (2004) an article highlights the difficulties that international dairy
businesses have had in procuring, distributing, and marketing milk and milk products
in there they have altered their approach in an effort to address these issues in their
successful efforts to penetrate the Chinese market. By forming alliances with local
companies through mergers, acquisitions, and joint-stock companies, foreign
corporations have been able to raise brand awareness in China while avoiding direct
competition with the country's largest domestic dairy companies. Also, they have
started to prioritise capital operations rather than industrial operations. If global
companies are allowed to merge with local businesses, their capital operations will be
much more direct and effective in capturing a larger share of the Chinese market. This
is the opinion of an expert with extensive experience in the dairy industry. They are
currently watching for the domestic dairy brand war in China to come to a conclusion
since a more beneficial and organised market will then emerge.
Antony Reegars (2004) describes Aavin Kumari's operational performance in his

study "An operational performance of Aavin Kumari." The Kanyakumari Union is
one of the 17 profit-making unions, according to the study. Through their parlours, the
shops in the societies, as well as to other regions, the milk producers made in the
union are sold. He offered advice on how to boost milk production as well as ways to
reward the society of milk producers with more prizes and medals.
Karpagam (2004) in his study, "Study on the Supply Chain Management in the Milk
Industry with Reference to Aavin Krishnagiri District Tamilnadu," some of the
findings and recommendations were made, especially those on strengthening the milk
supply chain and lowering transportation costs for obtaining raw milk and distributing
processed milk and milk products, to strengthen the supply chain and make dairying a
desirable profession.
Kurien (2004) according to the head of the National Cooperative Dairy Federation of
India Ltd, the farmers' sense of pride in the cooperative and its brands has been the
key to their exceptional success against all circumstances. Given that the NDDB is a
government body and that such action would be detrimental to the cooperatives'
autonomy, he has resisted the effort to turn dairy cooperatives into public sector units.
According to him, NDDB funding intended for the growth of dairy cooperatives are
41
being transferred to subsidiary and joint venture enterprises in order to advance
NDDB's business interests.
Suzanne de Treville et al., (2004) according to their research, "From supply chain to
demand chain: the role of lead time reduction in improving demand chain
performance," it is preferable for parties in a supply chain to first concentrate on lead
time reduction or to instead concentrate on improving the transfer of demand
information upstream in the chain in order to improve demand chain performance.
Notwithstanding the fact that the theory of supply and demand chain management
contends that shorter lead times are a prerequisite for using market mediation. By
employing a typology of demand chains to identify and suggest trajectories to attain
desired levels of market mediation performance, they finally offered a framework for
prioritising lead time reduction in a demand chain improvement project.
Sonesson and Berlin (2003) conducted a study on "A Vehicle Routing System
Supporting Milk Collection in Uruguay National Cooperative of Milk Producers
(Conaprole)". The vehicle routing model consists of three interconnected components:
A geographic information system, interfaces on the inside and outside, and a vehicle
routing solver with heuristics drawn from the "cluster first, route second" approach
are all necessary.
Daniel et al., (2003) their study on “The Challenge of a closed loop supply chain”
emphasized that closed-loop supply chains differ significantly from forward supply
chains in many aspects. These differences are not well understood in many contexts,
and the situation is complicated by many types of product returns. Progress is slow
since closed.
David and Roosen (2003) have stated that many European countries' milk output is
seasonal. While quantity seasonality causes capacity management issues for dairy
processors, a European Union policy goal is to eliminate pricing seasonality. The
results show that production seasonality rises as a result of storage subsidies that
encourage temporal market integration. There are some circumstances where product
market actions heighten quantity seasonality.
Chawla (2003) His article primarily focuses on the policies required to strengthen
India's standing in the global dairy market. Regulations for imports and required
42
export inspections, as well as the national agriculture policy's consideration of
economic, environmental, and technological sustainability, were examined. In
addition, the creation of a powerful task force for monitoring and steering as well as
the implementation of centralised animal disease prevention were highlighted as
policy imperatives for global positioning. According to the study, subsidies are given
for technological advancement and diversification as well as incentives for the
production of clean milk.
Prashant Khare Sharma and Singh (2003) according to them, milk collection was
higher during the healthy season (September to February) and lower during the
unhealthy season. season (from March through August) (from March to August). The
producer members of the society produced more in July and August, but because there
were no all-weather highways, they were unable to deliver their goods. The volume of
milk collected by milk producer cooperative societies diminishes as their proximity to
the dairy plant grows; however, this was not the case in societies with good
connections to the plant. The cost of labour management and the cost of feed and
fodder were both mostly variable costs that made up the cost of milk production. The
most significant issues with milk collection were low prices, which were followed by
a lack of cold storage, payment delays, insufficient water for animals, the absence of
all-weather roads, a small amount of marketable milk surplus, improper handling, a
dearth of cross-bred animals, and unstable electricity. Thus, efforts should be made to
overcome all of their limitations.
Veeramani (2003) in his work "Dairy Development in Tamil Nadu- A Study with
Reference to Marketing of Milk and Milk Products in Kanchipuram District," the
author examined how the organised sector's share of the market is steadily growing.
whereas the organised sectors' proportion is decreasing. All marketing efforts now
include milk branding as a necessary component. Markets appear in a variety of
branches. The majority of brands have prices that are nearly same because of fierce
rivalry.
Choudhary (2003) offered a brief description of the current milk production situation
and the national policies that affect milk farmers. The study also briefly covered the
import and export regulations for milk and milk products, as well as the taxation of
goods.
43
Co-ophorizon (2003) in its news article titled "All Village Cooperatives Making
Profit," it was reported that the Tamil Nadu Cooperative Milk Producers Federation
was thanked by the minister for dairy development for the effective measures it had
taken to ensure that all 7000-village milk cooperative societies and 15 out of 17
district cooperative unions in the state of Tamil Nadu were turning a profit. He
claimed that the district unions, who had previously delayed paying farmers'
procurement dues because of a financial crisis, were now making the payments
promptly.
Koli (2003) has conducted a case study on the role of cooperatives in reducing
poverty with reference to the Warana Milk Cooperative Union in Maharashtra. The
study found that the farmers receive regular income, subsidised cattle feed, artificial
insemination, cattle-health services, subsidy for the construction of dairy buildings,
milco testers, and training on scientific feeding and breeding, all of which ensure
income and employment in rural areas. The study emphasised that rather than the
union paying a premium price, the input services provided by the union ensured the
flow of high-quality milk.
Prasanna (2003) conducted a study on the level of consumer satisfaction with Aavin
Milk in Coimbatore. A convenience sampling method with non-probability was used
to select 150 respondents for the sample. The study concentrated on determining
consumer preference in the purchase of Aavin brand milk, assessing the perceived
differences between various brands of milk on critical features, and also on
identifying steps for enhancing customer happiness. The study's criteria included
availability, pricing, agent service, thickness, availability, taste, and place of purchase.
Aavin brand was discovered to be highly regarded for purity, flavour, and thickness.
Agent qualities like availability, cost, and service were also given high marks. Arokya
and Amirtha were rated as the top milk brands for flavour and purity, respectively.
Maria et al., (2002) carried done research on "A vehicle routing system assisting milk
collection in Uruguay National Cooperative of Milk Producers (Conaprole)". Three
interconnected components make up the vehicle routing model: A geographic
information system, interfaces on the inside and outside, and a vehicle routing solver
that uses "cluster first, route second"-inspired heuristics are all required.
44
Sharma and Sharma (2002) The said study focuses on the efficiency and global
competitiveness of the Indian dairy industry in a context of an open economy.
Notwithstanding limits on the import and export of dairy products, the study's
findings showed that India's dairy industry (both the production and processing
sectors) was technologically very efficient and had made tremendous growth over the
past three decades. The study's primary policy recommendation is that while the
Indian dairy industry is globally competitive, it needs to be protected from unfair and
deceptive trade competition from industrialised nations in a liberalised environment.
The study also points out that the effects of developed countries' commitments to
reduce tariffs, domestic support, and export subsidies had been minimal, and that
India will struggle to compete in the global market unless these nations significantly
reduce the trade-distorting support to their dairy sector.
Selvaraj (2002) according to his study, "Marketing of dairy goods through E-

Commerce," the dairy industry in India solely refers to milk production. The co-
operative movement has greatly benefited this primarily agricultural activity, and
India's milk output has increased to an adequate level. Additionally, he said that
unique training sessions would be set up depending on the local circumstances so that
farmers could develop value-added dairy products and market those products globally
by introducing E-Commerce at the village level.
Kiresur (2002) his research focuses on the economics of milk production in

Karnataka by examining the dairy animal composition, the relationship between
inputs and outputs, and the costs and returns profiles of milk production in the
Sameerwadi sugar factory operational area of Northern Karnataka during the years
1999 to 2000. Crossbred cows 13 had the highest net returns and benefit-cost ratios
when compared to native cows and buffaloes, especially on small and medium farms
as opposed to large farms. The main contributors to total cost as well as variable costs
were labour and feed expenditures. Small farmers produced more milk than medium
and big farmers, according to an analysis of farmers by farmer category.
Sharma and Joglekar (2002) a cross section of consumers spanning the territory of
the Godhavari Co-operative dairy and a sample size of 400 households were included
in their study on "Marketing of Milk- An Opinion Survey of Consumer Perception in
Rajahmundry, Andhra Pradesh." According to the report, the vast majority of families
45
bought milk from independent suppliers. The milk booths were close to residences or
situated a manageable distance away. It was fortunate that milk was delivered to
homes in plastic sachets. The level of milk fat content was the main criterion used to
assess milk quality.
Markham et al., (2001) the study observed supplier and customer integration
techniques in a global sample of 322 firms for their publication, “Arcs of integration:
an international study of supply chain strategies.” Five alternative techniques were
found in the sample and scales were created to measure supply chain integration. The
“arc of integration” that best describes the direction and intensity of integration
activity differs for each of these tactics. There was recurrent evidence suggesting the
strongest link between performance improvement and the widest degree of arc of
integration with suppliers and consumers.
Suresha (2001) examined the last three decades, which reveals that the Indian dairy
sector has experienced spectacular growth of more than 5 percent per year. By signing
a WTO agreement that covers Technical Barriers to Trade (TBT), Sanitary and Phyto
Sanitary (SPS) measures, and Codex Standards, India is practically required to
produce goods that meet international standards at prices that are competitive with
those found elsewhere in order to turn a profit and keep up with the escalating
competition brought on by globalization.
Shiv Kumar Gupta (2001) the author attempts to analyse how financial interventions
can reduce the impact of WTO on Indian Dairy and suggested that the Indian dairy
industry should advocate the imposition of tariff equivalent to the difference between
the world and domestic prices of dairy products with some premium on them. It was
stated that since countries like New Zealand and Australia, which produces dairy
products without subsidy has imposed a 10-20 percent tariff on Skimmed Milk
Powder (SMP) imports, India also has to minimize production costs to protect the
Indian dairy industry.
Agro–Economic Research Centre, Bhagalpur University (2001) conducted a study

on the distribution of milk production and consumption among rural producers in
various locations. The study’s goals are to calculate milk output, retention, and
conversion of milk into ghee, white butter, Between seasons, khoa/mawa, curd, etc
46
(lean and flush). It was proposed that cooperative laws need to be changed on a need-
basis and that a supportive environment of producer confidence, wisdom, energy, and
strength has to be established.
Suryamurthi (2001) the researcher notes that India’s yearly milk output passed the
30-million-ton level in the 1980s, the 50 million marks in the 1990s, and the 86
million tone mark in 2000 in his report titled “Dairy Farm Sector: A Brief Analysis”.
He also emphasises that millions of small dairy farmers who have been inspired by
co-ops and other institutions are to thank for this rise in milk production. The first
miracle was rural farmers coming together with professional managers to make the
country self-sufficient in milk, and the second miracle was it allowed the country to
enjoy the title of the largest milk producing nation.
Ghosh (2001) assuming that all other factors (such as price, product variety, and
brand names) given by rival stores are equal, people would typically prefer the store
that is nearest to them, suggesting that retailers can have a significant impact in
consumer store choice.
47
RESEARCH METHODOLOGY
Research Methodology is a way to solve systematically the research problem. It

explains the various steps generally adopted in studying research problem. It is
necessary for the researchers to know not only the research methods/techniques but
also methodology. For the purpose of the research, the following methodology is used
in the study.
Area of the study
Area of the study is Vellore district which comprises of fort city and leather, health
care institutions hub of India.
Period of the study
The period of the study is 09.03.2023 to 30.04.2023.
Sources of data
The study used both primary data and secondary data.
• Primary data
Primary data is collected through survey method and interview method. Questionnaire
were distributed to the respondents. The respondents are retailers of Aavin products in
48
Vellore District. The interview schedules are prepared in a simple manner to facilitate
the respondents to respond easily without any difficulty and the interview schedules
are pretested and validated.
•Secondary data
Secondary data is used in this study. Secondary data were collected from the
company booklets, website, journals, articles, newspaper, and books with regard to
this study.
Sampling design
• Population
Totally 288 people or retailers come under the Aavin milk products retailers in Vellore
district.
• Sample
For purpose of the study 120 retailers are selected for the study using Stratified
Random Sampling method under the probability sampling method.
Tools for analysis
For the purpose of detailed analysis of the study, the following statistical tools are
used.
 Percentage Analysis
 SPSS
Percentage Analysis
Percentage analysis is used to the percentage value of all different questions used
percentage are used in making comparison between two or more series of data.
49
TOTAL NUMBER OF RESPONDENTS
PERCENTAGE ANALYSIS = --------------------------------------------------------*100
TOTAL NUMBER OF SAMPLE
SPSS
SPSS stands for Statistic Package for Social Science. SPSS develops as a
programming language, and it is designed to provide statistical analysis. SPSS is a
complex and powerful application which have a graphical and syntactical interface.
• Chi-Square analysis
• Analysis of variance (ANOVA)
• Regression
• Correlation analysis
DATA ANALYSIS AND INTERPRETATION

In this chapter the analysis and discussion of “A study on the effectiveness of Supply
Chain Management from retailers perspective in Aavin at Vellore district” are
presented based on the opinion of a sample of 120 Aavin milk retailers selected from
Vellore district. The collected information was processed and suitable tables were also
constructed. Further the following analysis was performed in tune with the objectives
of the study.
The Chi-square analysis is used to test the independence of two attributes. In other
words, it is used to test the significance of one factor over the other. In order to carry
out the chi-square test the factors of the study are classified in to two categories such
50
as personal factors and study factors. Each of the personal factors is tested against the
study factors and chi-square test is applied at 5% level of significance. The results are
presented with suitable hypothesis and relevant interpretations.
The technique of analysis of variance (ANOVA) is an extension of “t” test used to test
the equality of several means. In other words, it is used to test whether there is a
significant difference between the different classifications of the customers on the
various aspects relating to Aavin milk. The results are presented with suitable
hypothesis and relevant interpretations.
The regression is a functional relationship between the variables. If there are only two
variables in the study then the regression is called simple regression otherwise this
study is the multiple regression analysis. It is performed between a dependent variable
and a set of independent variables mainly to assess the percentage of explanation
provided by each independent variable on the variations of the dependent variable
through the co-efficient of determination (R2). The results are presented in different
tables with suitable interpretations.
The correlation analysis is the study on finding the relationship between the variables.
If there are only two variables in the study of correlation then it is called simple
correlation, otherwise the study is either partial or multiple correlation. In this study,
this analysis is performed between the selected variables to assess the inter
relationship between the variables through are Karl Pearson’s co-efficient of
correlation. Further, the significance of correlation is also tested at 5% level of
significance and presented in the form of correlation matrix. Suitable interpretations
are also provided.
Descriptive analysis
GENDER OF THE RESPONDENTS
Gender refers to the characteristics of women, men, girls and boys that are socially
constructed. The gender of the respondent is classified as male and female.
51
TABLE 4.1
Gender of the respondents
Gender Number of respondents Percentage
Male 87 72.5
Female 33 27.5
Total 120 100
Source: Primary Data
Interpretation
It is found from table 4.1 that among the total respondents 72.5 percent are male and
27.5 percent are female. It is concluded that majority of the respondent are male.
CHART 4.1
Gender of the respondents
52
Female
28%
Male
73%
Gender
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
Educational qualifications refer to the formal declaration, typically in the form of a

certificate, diploma, or degree, attesting to the successful completion of a course of
study or a stage of a course. It is classified as “no formal education, school level,
college level, professional level and Others”.
53
TABLE 4.2
Educational qualification of the respondents
Educational qualification Number of respondents Percentage

No formal education 05 4.2
School level 53 44.2
College level 48 40
Professional level 13 10.8
Others 01 0.8
Total 120 100
Interpretation
It is found from table 4.2, that among the total respondent 4.2 percent have no formal
education, 44.2 percent are upto school level, 40 percent are up to college level, 10.8
percent are upto professional level, 0.8 percent are others. It is concluded that
majority of the respondent have school education.
CHART 4.2
Educational Qualification
54
50
44.2
45
40
40
35
30
Percentage(%)
25
20
15
10.8
10
4.2
5
0.8
0
No formal educa- School level College level Professional level Others
tion
Educational Qualification
AGE OF RESPONDENTS
Age is a term used to define a person's age at a given period. It is described as the
measurement of the amount of time that has passed between the date of the live birth
to a particular point in time, typically the date the data was collected. It is classified as
Less than 25 years, 26-35 years, 36-45 years, 46-60 years and above 60 years.
TABLE 4.3
55
Age of respondents
Age of respondents Number of respondents Percentage

Less than 25 years 4 3.3
26-35 years 36 30
36-45 years 42 35
46-60 years 32 26.7
Above 60 years 6 5
Total 120 100
Interpretation
From the table, we interpret that 3.3 percent of the respondents are Less than 25 years,
30 percent of the respondents are 26-35 years, 35 percent of the respondents are 36-45
years, 26.7 percent of the respondents are 46-60 years and 5 percent of ages of
respondents are above 60 years.
CHART 4.3
Age of respondents
56
40
35
35
30
30
26.7
25
Persontage(%) 20
15
10
5
5 3.3
0
Less than 25 26-35 years 36-45 years 46-60 years Above 60 years
years
Age of respondents
(in years)
MARITAL STATUS
Marital status as "the personal status of each individual in relation to the marriage
laws or customs of the country". It is classified as married and unmarried.
57
TABLE 4.4
Marital Status
Marital Status Number of respondents Percentage
Married 112 93.3
Unmarried 8 6.7
Total 120 100
Interpretation
It is found from table 4.4, that among the total respondent 93.3 percent are married
and 6.7 percent are unmarried. It is concluded that majority of the respondent is
married.
CHART 4.4
58
Marital Status
Unmarried
Married
Marital Status
YEARS OF EXPERIENCE
59
Years of experience refers to the length of time a young individual, particularly a
student, works for a corporation as a sort of training. It is classified as less than 2
years, two to four years, five to seven years, eight to ten years and above ten years.
TABLE 4.5
Years of experience
Years of experience Number of respondents Percentage

Less than 2 years 19 15.8
2-4 years 47 39.2
5-7 years 36 30
8-10 years 4 3.3
Above 10 years 14 11.7
Total 120 100
Interpretation
It is found from table 4.5, that among the total respondent 15.8 percent have less than
2 years of experience, 39.2 percent have 2-4 years of experience, 30 percent have 5-7
years of experience, 3.3 percent have 8-10 years of experience and 11.7 percent have
above 10 years of experience. It is concluded that majority of the respondents have 2-
4 years of experience.
60
CHART 4.5
Years of experience
45
39.2
40
35
30
30
Percentage(%)
25
20
15.8
15
11.7
10
5 3.3
0
Less than 2 years 2-4 years 5-7 years 8-10 years Above 10 years
Years of experience
MONTHLY INCOME
61
Monthly income is the total amount of money received for a given month, excluding
any withholdings, taxes, and other expenses. It is classified as less than 5,000, 5,001-
10,000, 10,001-15,000, 15,001-20,000 and above 20,000.
TABLE 4.6
Monthly Income
Monthly Income (in Rs) Number of respondents Percentage

Less than 5,000 27 22.5
5,001-10,000 42 35
10,001-15,000 24 20
15,001-20,000 09 7.5
Above 20,000 18 15
Total 120 100
Interpretation
From the table 4.6, we interpret that 22.5 percent of the respondent get monthly
income less than 5,000, 35 percent of the respondent get monthly income from 5,001-
10,000, 35 percent of the respondent get monthly income from 10,001-15,000, 7.5
percent of the respondent get monthly income from 15,001-20,000 and 15 percent of
the respondent get monthly income above 20,000 rupees.
CHART NO. 4.6
Monthly Income
62
40
35
35
30
Percentage(%) 25 22.5
20
20
15
15
10 7.5
0
Less than 5,000 5,001-10,000 10,001-15,000 15,001-20,000 Above 20,000
Monthly Income (in Rs.)
OTHER BUSINESS APART FROM MILK SUPPLY
The respondent does any other business apart from milk supply. It is classified as
“yes and no”.
63
Table 4.7
Other business apart from milk supply
Options Number of respondents Percentage
Yes 77 64.2
No 43 35.8
Total 120 100
Interpretation
It is found from table 4.7 that among the total respondents 64.2 percent do other
business apart from milk supply whereas 35.8 percent do not do any business. The
majority of the respondents do other business apart from milk supply.
CHART 4.7
Other business apart from milk supply
64
No
Yes
Other business apart form milk supply
THE RESPONDENTS OTHER BUSINESS
The other business of the respondents apart from the milk supply. It is classified as
“Private employee, Daily wages, Entrepreneur, Agriculture and Others”
65
Table 4.8
The respondents other business

Private employee 08 10.39
Daily wages 20 25.97
Entrepreneur 44 57.14
Agriculture 03 3.90
Others 02 02
Total 77 100
Interpretation
It is found from table 4.8, that among the total retailers, 10.39 percent are engaged as
private employees, 25.97 percent are engaged in daily wages, 57.14 percent are
engaged in entrepreneur, 3.90 percent are engaged in agriculture and 2 percent belong
to others as home maker. It is concluded that maximum of the respondent other
business is entrepreneur apart from milk sales.
CHART 4.8
The respondents other business
66
60 57.14
50
40
Percentage(%)
30 25.97
20
10.39
10
3.9
2
0
Private employee Daily wages Entrepreneur Agriculture Others
Options
KINDS OF AAVIN RETAILERSHIP
The kind of Aavin Retailership of the respondents. It is classified as FRO (Franchise

Retail Outlets) and Parlour.
67
TABLE 4.9
Kind of Aavin Retailership
FRO (Franchise Retail Outlets) 98 81.7
Parlour 22 18.3
Total 120 100
Interpretation
It is found from table 4.9 that among the total respondent 81.7 percent are Aavin FRO
(Franchise Retail Outlets) and 18.3 percent are Aavin Parlour. It is concluded that
majority of the respondent are Aavin FRO (Franchise Retail Outlets).
CHART 4.9
Kinds of Aavin Retailership
68
Parlour
18%
FRO
82%
Kinds of Aavin Retailership
RANKING OF FACTORS INFLUENCING THE RETAILERSHIP IN AAVIN
The priority of factors influencing the retailership in Aavin milk. The factors are
classified as high demand, easy availability of milk, reasonable commission, brand
value and trust and profit.
69
TABLE 4.10
Ranking of factors influencing the retailership in Aavin
Options 1 2 3 4 5
High demand 20 42 35 15 8
(16.7%) (35%) (29.17%) (12.5%) (6.7%)
Easy availability of milk 15 26 49 27 3
(12.5%) (21.7%) (40.8%) (22.5%) (2.5%)
Reasonable commission 21 13 34 44 8
(17.5%) 10.83%) (28.3%) (36.7%) (6.7%)
Brand value and trust 38 23 29 28 2
(31.7%) (19.17%) (24.17%) (23.3%) (1.7%)
Profit 7 21 41 36 15
(5.8%) (17.5%) (34.17%) (30%) (12.5%)
Interpretation
It is found from table 10, that among the total retailers, 31.7 percent have given top
priority to Brand value and trust, 35 percent have given second priority to High
demand, 40.8 percent third priority to Easy availability of milk, 36.7 percent fourth
priority to Reasonable commission and 12.5 percent fifth priority to Profit. It is
concluded that top priority is given to Brand value and trust for Aavin milk which has
influenced the retailership in Aavin.
CHART 4.10
70
Ranking of factors influencing the retailership in Aavin.
45 40.8
40 36.7
35 34.17
35 31.7
Percentage(%) 29.17 28.3 30
30
24.17
25 21.7 22.5 23.3
21
19.17
20 16.7 17.5
15 12.5 12.5 12.5
10.8
10 5.8 6.7 6.7
5 2.5 1.7
0
1 2 3 4 5
Options
High demand Easy availability of milk Reasonable commission Brand value and trust
Profit
PROCUREMENT OF MILK FOR DAILY SALES
The procurements of the milk for the daily sales of the respondents. It is classified as
50 litres, 51-100 litres, 101-150 litres, 151-200 litres and more than 200 litres.
71
TABLE 4.11
Procurement of milk for daily sales

50 litres 15 12.5
51-100 litres 32 26.7
101-150 litres 26 21.7
151-200 litres 18 15
More than 200 litres 29 24.2
Total 120 100
Interpretation
It is found from table 4.11, that among the total retailers, 12.5 percent are procuring
50 litres, percent 26.7 percent are procuring 51-100 litres, 21.7 percent are procuring
101-150 litres, 15 percent are procuring 151-200 litres and 24.2 percent are procuring
more than 200 litres. It is concluded that majority of the retaliers are procuring 51-100
litres of milk per day for their sales.
CHART 4.11
72
Procurement of milk for daily sales
30
26.7
25 24.2
21.7
20
Percentage(%)
15
15
12.5
10
0
50 liters 51-100 liters 101-150 liters 151-200 liters More than 200
liters
Options
TYPES OF CUSTOMERS
73
A customer is a person or company who makes a purchase of goods or services from
another firm. It is classified as “individuals, households, restaurant, tea shop and
others.
TABLE 4.12
Types of customers

Individuals 13 10.8
Household customers 87 72.5
Restaurant customers 3 2.5
Tea shops 11 9.2
Others 6 5
Total 120 100
Source: Primary data
Interpretation
It is found from table 4.12, that among the total respondent 10.8 percent are
individuals, 72.5 percent are household customers, 2.5 percent are restaurant
customers, 9.2 percent are tea shops owners and 5 percent belong to other category. It
is concluded that majority of the respondents are household customers.
CHART 4.12
74
Types of customers
80 72.5
70
60
50
40
Percentage(%)
30
20
10.8 9.2
10 2.5 5
0
ers
ps
ls
rs
rs
ua
o
me
me
h
sh
Ot
id
to
to
iv
a
us
us
Te
d
In
tc
dc
ran
h ol
u
se
sta
u
Re
Ho
Options
THE CUSTOMERS THROUGH CARD SYSTEM
75
The customers through card system to the respondents. They are classified as less than
100, 101-200, 201-300, 301-400 and above 400.
TABLE 4.13
The customers through card system

Less than 100 108 90
101-200 11 9.2
201-300 1 0.8
301-400 0 0
Above 400 0 0
Total 120 100
Interpretation
It is found from table 4.13, that among the total respondents 90 percent are less than
100 customers through card system, 9.2 percent are 101-200 customers through card
system, 0.8 percent are 201-300 customers through card system and so on. It is
concluded that majority of the respondents are less than 100 customers through card
system.
CHART 4.13
76
The customers through card system
100
90
90
80
70
Percentage(%)
60
50
40
30
20
9.2
10
0.8 0 0
0
Less than 100 101-200 201-300 301-400 Above 400
Options
THE CUSTOMERS THROUGH SPOT PURCHASE
77
The customers through spot customers to the respondents. They are classified as less
than 100, 101-200, 201-300, 301-400 and above 400.
TABLE 4.14
The customers through spot purchase

Less than 100 21 17.5
101-200 46 38.3
201-300 33 27.5
301-400 14 11.7
Above 400 6 5
Total 120 100
Interpretation
It is found from table 4.14, that among the total respondents 17.5 percent are less than
100 customers through spot purchase, 38.3 percent are 101-200 customer through spot
purchase, 27.5 percent are 201-300 customers through spot purchase, 11.7 percent are
301-400 customers through spot purchase and 5 percent are Above 400 customers
through spot purchase. It is concluded that majority of the respondents are 101-200.
CHART 4.14
78
The customers through spot purchase
45
40 38.3
35
30 27.5
Percentage(%)
25
20 17.5
15
11.7
10
5
5
0
Less than 100 101-200 201-300 301-400 Above 400
Options
RETAILERSHIP AVAILABILITY
79
The retailership is available easily or not to the respondents. It is classified as “yes”
and “no”.
TABLE 4.15
Availability of retailership
Yes 99 82.5
No 21 17.5
Total 120 100
Interpretation
It is found from table 4.15, that among the total retailers, 82.5 percent have availed
the retailership easily whereas 17.5 percent have not availed easily. It is concluded
that majority of the respondent have availed the retailership easily.
CHART 4.15
80
Availability of retailership
No
18%
Yes
83%
Retailership availablity
THE PROCEDURE TO APPLY FOR RETAILERSHIP
81
The procedure to apply for retailership in Aavin of the respondents. It is classified as
very difficult, delay in granting, too many procedures, difficult through online and
others.
TABLE 4.16
Procedure to apply for Retailership

Very difficult 16 13.3
Delay in granting 51 42.5
Too many procedures 37 30.8
Difficult through online 12 10
Others 4 3.3
Total 120 100
Interpretation
It is found from table 4.16, that among the total retailers, 13.3 percent have opined
that it is very difficult, 42.5 percent faced a delay in retailership, 30.8 percent have
opined as too many procedures, 10 percent opined that it is difficult through online
and 3.3 percent are others have political issues regarding procedure to apply for
retailership.
82
CHART 4.16
Procedure to apply for Retailership
45 42.5
40
35 30.8
30
25
20
Percentage(%)
15 13.3
10
10
5 3.3
0
ers
lt
es
e
cu
tin
lin
h
ur
Ot
ffi
ran
on
ed
di
c
ng
gh
ro
ry
yp
u
yi
Ve
ro
la
th
ma
De
lt
cu
o
To
ffi
Di
Options
83
OPINION ABOUT PRICE OF AAVIN MILK WHEN COMPARED TO
COMPETITORS
The opinion about the price of Aavin milk when compared to competitor products. It
is classified as very high, high, moderate, low and very low.
TABLE 4.17
Opinion about price of Aavin when compared to competitors
Opinion Number of respondents Percentage

Very high 60 50
High 49 40.8
Moderate 10 8.3
Low 1 0.8
Very Low 0 0
Total 120 100
Interpretation
It is found from table 4.17, that among the total retailers, 50 percent have very high
opinion as regarding the price when compared to competitor, 40.8 percent have high
opinion as regarding the price when compared to competitor, 8.3 percent have
moderate opinion as regarding the price when compared to competitor, 0.8 percent
have low opinion and 0 percent is very low opinion.
84
CHART 4.17
Opinion about price of Aavin when compared to competitors
60
50
50
40.8
40
Percentage(%)
30
20
10 8.3
0.8 0
0
Very high High Moderate Low Very Low
Options
85
RELATIONSHIP MAINTAINED WITH THE CUSTOMERS
The relationship maintained with the customer of the respondents. It is classified as

very good, good, moderate, bad and very bad.
TABLE 4.18
Relationship maintained with the customers

Very good 65 54.2
Good 40 33.3
Moderate 15 12.5
Bad 0 0
Very bad 0 0
Total 120 100
Interpretation
It is found from table 4.18, that among the total retailers, 54.2 percent have
maintained very good relationship with customers, 33.3 percent have maintained good
relationship, 12.5 percent have moderate relationship and so on. It is concluded that
majority of the respondents have maintained very good relationship with their
customers.
86
CHART 4.18
Relationship maintained with the customers
60
54.2
50
40
Percentage(%)
33.3
30
20
12.5
10
0 0
0
Very good Good Moderate Bad Very bad
Options
87
REASONS FOR THE PROBLEMS FACED BY RETAILERS
The reasons for the problems faced by the respondents, which are classified as late
distribution, damaged pack, commission problem, no compensation for damages, non-
returnability and all the above.
TABLE 4.19
Reasons for the problems faced by retailers

Late distribution 13 10.83
Damaged Pack 42 35
No compensation for 18 15
damages
Non-returnability 6 5
All the above 41 34.17
Total 120 100
Interpretation
It is found from table 4.19, that among the total retailers, 10.83 percent faced the
problem of late distribution, 35 percent face the problem of receiving damaged pack,
15 percent of them state that there is no compensation for damages, 5 percent of them
state that the milk is non-returnable and 34.17 percent have faced all the above. It is
concluded that the maximum of the respondent faced all the above problems.
88
CHART 4.19
Reasons for the problems faced by retailers
40
35 34.17
35
Percentage(%)
30
25
20
15
15
10.83
10
5
5
0
Late distribution Damaged Pack No compensation Non-returnability All the above
for damages
Options
89
LEVEL OF SATISFACTION- TOWARDS PACKING
The level of satisfaction towards Aavin milk packing. It is classified as highly

satisfied, satisfied, neutral, dissatisfied and highly dissatisfied.
TABLE 4.20
Level of satisfaction- towards packing

Highly Satisfied 13 10.8
Satisfied 54 45
Neutral 30 25
Dissatisfied 13 10.8
Highly Dissatisfied 10 8.3
Total 120 100
Interpretation
It is found from table 4.20, that among the total retailers, 10.8 percent are highly
satisfied, 45 percent are satisfied, 25 percent are neutral, 10.8 percent are dissatisfied
and 8.3 percent are highly dissatisfied. Regarding level of satisfaction-towards
packing It is concluded that majority of the respondent has opined that their level of
satisfaction is satisfied towards packing.
90
CHART 4.20
Level of satisfaction- towards packing
50
45
45
40
35
Percentage(%)
30
25
25
20
15
10.8 10.8
10 8.3
5
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
Options
91
LEVEL OF SATISFACTION TOWARDS THE FACTORS
The level of satisfaction towards the following factors. It is classified as commission

received, distribution network, customer relationship, timely delivery and grievance
redressal.
TABLE 4.21
Level of satisfaction towards the factors
Options Highly satisfied Neutral Dissatisfied Highly

satisfied dissatisfied
Commission 68 40 6 3 3
Received (56.67%) (33.33%) (5%) (2.5%) (2.5%)
Distribution 34 51 23 9 3
Network (28.3%) (42.5%) (19.17%) (7.5%) (2.5%)
Customer 64 38 16 2 0
Relationship (53.3%) (31.67%) (13.33%) (1.67%) (0%)
Timely Delivery 24 36 39 16 5
(20%) (30%) (32.5%) (13.33%) (4.17%)
Grievance 8 27 27 40 18
Redressal (6.67%) (22.5%) (22.5%) (33.33%) (15%)
Interpretation
It is found from table 4.21, that commission Received was 56.67 percent are highly
satisfied, 33.33 percent are satisfied, 5 percent are neutral, 2.5 percent are dissatisfied
and 2.5 percent are highly dissatisfied. Distribution Network was 28.3 percent are
Highly satisfied, 42.5 percent are satisfied, 19.17 percent are neutral, 7.5 percent are
dissatisfied and 2.5 percent highly dissatisfied. Customer relationship 53.3 percent are
highly satisfied, 31.67 percent are satisfied, 13.33 percent are neutral, 1.67 percent are
dissatisfied and 0 percent are highly dissatisfied. Timely delivery was 20 percent are
highly satisfied, 30 percent are satisfied, 32.5 percent are neutral, 13.33 percent are
dissatisfied, 4.17 percent are highly dissatisfied. Grievance redressal was 6.6 percent
92
are highly satisfied, 22.5 percent are satisfied, 22.5 percent are neutral, 33.33 percent
are dissatisfied and 15 percent are highly dissatisfied.
CHART 4.21
Level of satisfaction towards the factors
60 56.67
53.3
50
42.5
40
Percentage(%)
33.33 31.67 32.5 33.33

28.3 30
30
22.5 22.5
20 19.17
20
13.33 13.33 15
10 6.67 7.5
5 4.17
2.5 1.67 2.5 2.5
0
0
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
Options
Commission Received Distribution Network Customer Relationship

Timely Delivery Grievance Redressal
93
FREEZER PROVIDED BY THE COMPANY
The freezer provided by the company to the respondents. It is classified as yes and no.
TABLE 4.22
Freezer provided by the company

Yes 32 26.7
No 88 73.3
Total 120 100
Interpretation
It is found from table 4.22, that among the total retailers, 26.7 percent got freezer
from company and 73.3 percent did not got freezer from the company. It is concluded
that maximum of the respondent is not got the freezer from the company.
94
CHART 4.22
Freezer provided by the company
Yes
27%
No
73%
Freezer Provided by the company
95
ON-TIME DELIVERY BY DISTRIBUTORS
The On-time delivery by distributor to the respondents. It is classified as yes and no.
TABLE 4.23
On-time delivery by distributors
Yes 86 71.7
No 34 28.3
Total 120 100
Interpretation
It is found from table 4.23, that among the total retailers, 71.7 percent products are
delivered on-time by distributer and 28.3 percent products are not delivered on-time
by distributer. It is concluded that majority of the respondent got on-time delivery by
the distributer.
96
CHART 4.23
On-time delivery by distributers
No
28%
Yes
72%
On-time delivery by distributors
97
PROBLEM OF UNSOLD MILK
The problem of unsold milk of the respondents. It is classified as yes and no.
TABLE 4.24
Problem of unsold milk
Yes 87 72.5
No 33 27.5
Total 120 100
Interpretation
It is found from table 4.24, that among the total retailers, 72.5 percent have faced
problem of unsold milk and 27.5 percent have not faced problem of unsold milk. It is
concluded that majority of the respondent faced problem of unsold milk.
98
CHART 4.24
No
28%
Yes
73%
USAGE OF UNSOLD MILK

99
The usage of unsold milk by the respondents. It is classified as making curd, making
paneer, making ghee, giving free to someone and all the above.
TABLE 4.25
Usage of unsold milk
Options Number of retailers Percentage

Making curd 20 16.7
Making paneer 23 19.2
Making ghee 14 11.7
Giving free to someone 49 40.8
All the above 14 11.7
Total 120 100
Interpretation
It is found from table 4.25, that among the total retailers, 16.7 percent are making
curd, 19.2 percent are making paneer, 11.7 percent are making ghee, 40.8 percent are
giving free to someone and 11.7 percent all the above. Regarding usage of unsold
milk, it is concluded that majority of the respondents are giving free the unsold milk
to someone.
CHART 4.25
100
Usage of unsold milk
45
40.8
40
35
30
Percentage(%)
25
19.2
20 16.7
15 11.7 11.7
10
0
Making curd Making paneer Making ghee Giving free to All the above
someone
Options
SALES OF DIFFERENT KINDS OF MILK
101
The sales of different kind of milk by the respondents. It is classified as toned milk-
blue colour, double toned milk-magenta colour, standardized milk- green colour, full
cream milk- orange colour and all the above.
TABLE 4.26
Sales of different kinds of milk

Toned milk- blue 7 5.8
colour
Double toned milk- 4 3.3
magenta colour
Standardized milk- green 104 86.7
colour,
Full cream milk- orange 5 4.2
colour
All the above 0 0
Total 120 100
Source: primary data
Interpretation
It is found from table 4.26, that among the total retailers, 5.8 percent sell toned milk-
blue colour, 3.3 percent sell double toned milk, 86.7 percent sell standardized milk-
green colour, 4.2 percent sell full cream milk- orange colour and 0 percent sell all the
above.
102
CHART 4.26
Sales of different kinds of milk
100
90 86.7
80
70
60
Percentage(%)
50
40
30
20
10 5.8 3.3 4.2
0
0
Toned milk- blue Double toned Standardized Full cream milk- All the above
coloure milk- magenta milk- green orange colour
colour colour,
Options
103
HIGH SALES OF DIFFERENT QUANTITY OF MILK
The high sales of different quantity of milk. It is classified as ¼ liter, ½ litre, 1 litre, 2
litres and both ¼ and ½ litres.
TABLE 4.27
High sales of different Quantity of milk

¼ litre 1 0.8
½ litre 104 86.7
1 litre 5 4.2
2 litres 0 0
¼ and ½ litres 10 8.3
Total 120 100
Interpretation
It is found from table 4.27, that among the total retailers, 0.8 percent are high sales on
¼ litre, 86.7 percent are high sales on ½ litre, 4.2 percent are high sales on 1 litre, 8.3
percent are high sales of both ¼ and ½ litre and no high sales on 2 litres.
CHART 4.27
104
High sales of different Quantity of milk
100
90 86.7
80
70
Percentage(%)
60
50
40
30
20
8.3
10 4.2
0.8 0
0
¼ liter ½ liter 1 liter 2 liters ¼ and ½ liters
Options
TEST APPLIED: CHI-SQUARE
Chi-square
105
The chi-square is a statistical test used to find the relationship between the observed
values and the expected values of raw variables.
H0= There is no significant relationship between Monthly income and the

procurement of milk for the daily sales of the respondents.
H1= There is a significant relationship between Monthly income and the

TABLE 4.28
Chi – square
Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 95.358a 16 .000
Likelihood Ratio 92.996 16 .000
Linear-by-Linear 56.215 1 .000
Association
N of Valid Cases 120
Source –Computed Data
Interpretation
From the above table the significant value is .000 which is lesser than 0.05 so the
null hypothesis(H0) is rejected and alternative hypothesis(H 1) is accepted. Therefore,
there is a significant relationship between monthly income and the procurement of
milk for the daily sales of the respondents.
TEST APPLIED: ANOVA
106
ANOVA - Analysis of variances (ANOVA) is a statistical technique used to test for
differences or correlations in the effects of independent variables on a dependent
variable.
H0= There is no significant relationship between the factors of High demand, easy
availability of milk, reasonable commission, brand value trust and profit.
H1= There is a significant relationship between the factors of High demand, easy
TABLE 4.29
ANOVA
Sum of df Mean F Sig.

Squares Square
Rank the of Between 3.942 4 .986 .791 .534
Factor High Groups
demand Within 143.383 115 1.247
Groups
Total 147.325 119
Rank the factor Between 10.670 4 2.667 1.892 .117
of Reasonable Groups
commission Within 162.122 115 1.410
Groups
Total 172.792 119
Rank the factor Between 3.094 4 .774 .757 .555
of Easy Groups
availability of Within 117.498 115 1.022
milk Groups
Total 120.592 119
Rank the factor Between 4.597 4 1.1149 .782 .539

of Brand value Groups
and trust Within 168.995 115 1.470
Groups
Total 173.592 119
107
Rank the factor Between 6.617 4 1.654 1.459 .219
of Profit Groups
Within 130.374 115 1.134
Groups
Total 136.992 119
Source-Computed Data
Interpretation
From the above table the significant values are greater than 0.05, so and the null
hypothesis (H0) is accepted and the alternative hypothesis (H 1) is rejected. Therefore,
there is no significant relationship between the factors of High demand, easy
108
TEST APPLIED: REGRESSION
Regression
The regression is a functional relationship between the variables. If there are only two
variables in the study then the regression is called simple regression otherwise this
study is the multiple regression analysis.
H0= There is no significant relationship between the level of satisfaction towards

commission received, distribution network, grievance redressal, timely delivery,
customer relationship.
H1= There is a significant relationship between the level of satisfaction towards

TABLE 4.30
Coefficient
Model Unstandardized Standardized t Sig.

coefficients Coefficients
B Std. Error Beta
Commission Received -.061 .092 -.072 -.664 .000
Distribution Network .073 .099 .091 .732 .466
Grievance Redressal -.004 .064 -.006 -.068 .946
Timely Delivery -.029 .086 -.038 -.334 .739
109
Customer Relationship .212 .093 .221 2.279 .025
Source- Computed Data
Interpretation
From the above table the significant value .000 is lesser than 0.05, so and the null
hypothesis (H0) is rejected and the alternative hypothesis (H 1) is accepted. Therefore,
there is a significant relationship between the level of satisfaction towards
TEST APPLIED: CORRELATION
CORRELATION- The correlation analysis is the study on finding the relationship

between the variables. If there are only two variables in the study of correlation then it
is called simple correlation, otherwise the study is either partial or multiple
correlation.
H0= There is no significant relationship between the sales of different kind of milk
and high sales of different quantity of milk.
H1= There is a significant relationship between the sales of different kind of milk and
high sales of different quantity of milk.
TABLE 4.31
Correlation
Sales of High sales of

different different
kind of Quantity of
milk milk
Sales of different Pearson Correlation 1 .103

kind of milk
Sig. (2-tailed) .265
N 120 120
110
High sales of Pearson Correlation .103 1
different Quantity
Sig. (2-tailed) .265
of milk
N 120 120
Source-Computed Data
Interpretation
From the above table the significant value .265 is greater than 0.05, so and the null
hypothesis (H0) is accepted and the alternative hypothesis (H 1) is rejected. Therefore,
there is no significant relationship between the sales of different kinds of milk and
high sales of different quantity of milk.
CONCLUSION
6.1 FINDINGS
 72.5% are Male and 27.5% are female respondent.

 44.2% of respondents have school level educational qualification.
 35% of the respondents belong to the Age group of 36-45 years.
 93.3% of the retailers are married.
 39.2% of the retailers have 2-4 years of experience in this filed.
 35% of respondent earn 5,001-10,000 Monthly Income.
 64.2% of the respondents do other business apart from milk supply.
 57.14% of retailers are entrepreneur.
 81.7% of Aavin Retailership was FRO.
 Majority Brand value and trust top Ranking of factors influencing the
retailership in Aavin.
 26.7% 51-100 litres Procurement of milk for daily sales.
 72.5% are house hold customers.
 90% less than 100 of Customers through card system.
 38.3% 101-200 of Customers through spot customers.
 82.5% of retailers availability of retailership easily.
 42.5% Delay in granting the procedure to apply for retailership.
111
 50% of respondents highly satisfied about price of Aavin milk when compared
to competitor.
 54.2% highly satisfied relationship maintained with the customer.
 35% damaged package Reasons for the problems faced by retailers.
 45% of respondents level of satisfaction to words Packing.
 Majority Commission Received Top Level of satisfaction towards the factors.
 73.3% no Freezer provided by the company.
 71.7% of respondents got on-time delivery by distributer.
 72.5% of respondents have problem of unsold milk.
 40.8% of respondents giving free to someone unsold milk.
 86.7% standardized milk- green colour high sales in different kind of milk.
 86.7% of respondents high sales of ½ litre Quantity of milk.
 There is a significant relationship between monthly income and the
 There is no significant relationship between the factors of High demand, easy
 There is a significant relationship between the level of satisfaction towards
commission received, distribution network, grievance redressal, timely
delivery, customer relationship.
 There is no significant relationship between the sales of different kinds of milk
and high sales of different quantity of milk.
112
6.2 SUGGESTIONS
 Monthly once Aavin may conduct Grievance Redressal for retailers.
 Aavin may provide freezer to the retailers.
 Aavin may take measures to improve the packing of products to avoid
spoilage.
 All varieties of Aavin milk should be available in all areas.
 Different shapes of ice cream may be introduced to attract young customers.
 More number of retail outlets may be opened in rural areas to attract more
customers.
 Aavin may introduce alternative packing materials which are eco-friendly.
113
6.3 CONCLUSION
A survey of people has been conducted to know the effectiveness of Supply Chain
Management from the Retailers perspective in Aavin at Vellore district. It is been
observed that Aavin retailers are mostly aware about the different varieties in Aavin
dairy. It is been concluded that retailers preferred to sell Aavin products because of
the flavour, taste, quality, image, brand name, etc… For engorge retailers to give
them, company should go for free gifts, discounts, offers, apart from other ways.
Company should concentrate more on television for advertisement, radio, social
media, etc. for consumers awareness towards the product.
Economical distribution of the products will also be equally important. The

company’s strategies should focus on driving sales through a right product mix,
efficient materials, procurement, reduced wastage, increased factory efficiencies and
improved supply chain management. There’s an immense scope for growth of
chocolate industry in India geographically as well as in the product offering. Hence
Aavin may start manufacturing chocolates too. Aavin may take measures to improve
the quality of packing to reduce the wastage of milk.
114
115

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Indhumathi.v II Mba -1 (4)

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INTRODUCTION

Supply Chain Management

Dairy companies have continually tried to implement cost-saving measures since a

 The production planning and inventory control process,

 Distribution and logistics process.

Production planning is more specifically the design and administration of the

Aavin vision is as follows:

 and achievements beckoning other Milk Federation in the country in pursuit of

 To promote producer oriented viable cooperative society to impart an impetus

 dairy productivity and rural employment.

 To develop business acumen in marketing and trading disciplines so as to

 milk, give a fillip to the income of milk, producers.

 process sustain invincibility of cooperative.

Aavin mission is as follows:

 promoting vibrant, self-sustaining and holistic co-operative dairy development

1.2 PROBLEM DEFINITION

1.3 OBJECTIVES OF THE STUDY

 To study the effectiveness of supply chain management from retailers’

 To study the effectiveness of on-time delivery of the Aavin milk products.

 To study the success of wastage reduction of the Aavin milk products.

 To offer suggestions to improve the supply chain management at Aavin.

1.4 SCOPE OF STUDY

1.5 LIMITATIONS OF THE STUDY

 The sample was restricted to Vellore district only.

 The sample size was limited to 120 respondents only.

 The period of study is one month only.

Type State Government Cooperative

Industry Food processing FMCG

Predecessor Tamil Nadu Dairy Development Corporation Limited

Founded 1958 in Tamil Nadu, India

Headquarters Chennai, Tamil Nadu

Company Status Active

 Ambattur – Product Dairy

 Madhavaram – capacity of 3 LLPD

 Ambattur – capacity of 4 LLPD

 Sholinganallur – capacity of 4 LLPD

Milk Products of Aavin

 Full Cream Milk (6% fat)

 Standardized Milk (4.5% fat)

 Toned milk (3% fat)

 Doubled toned milk (1.5% fat)

Full Cream Milk

Aavin Premium, Full Cream Milk, Pasteurised, Homogenised is hygienically

Ingredients Milk solids

Added Preservatives No preservatives added

Shelf life/Keeping Quality Use By Date (See the Stamp)

Storage Condition Store under refrigeration below 4 degrees Celsius

Product Application Ready to boil and eat

Product Features Pure and fresh

Available in Available in Tamilnadu

Web site www.aavin.tn.gov.in

Prices (500 ml) Rs. 30.0

Solids not fat 9g

Energy value 90 kcal

Packaging 225, 500 ml, 5 L

Ingredients Milk solids

Added Preservatives No preservatives added

Shelf life/Keeping Quality Use By Date (See the Stamp)

Storage Condition Store under refrigeration below 4 degrees Celsius

Product Application Ready to boil and eat

Product Features Pure and fresh

Available in Available in Tamilnadu

Web site www.aavin.tn.gov.in

Prices 225ml Rs. 11.0