Presentation on Project Titled

“A Study on Changing Consumer Preference Towards Consumption of

‘Nandini’ milk in Dharwad City”
At
Dharwad Milk Union, Dharwad.

By
MR.NARAYAN
(MBA Finance)

1
 INDUSTRY PROFILE
• Milk Dairy industry is of comparatively recent origin.
• Commercial dairying started in India with the
establishment of military dairy farm
and co-operative milk union’s.
• Dairy technology commenced in the year 1950, with
functioning of Central Dairy of Aarey colony, Bombay and
milk product technology in 1956,with establishment of
Amul Dairy, Anand , Gujarat.
• In 1951 only 2 lakh ltrs/day milk being processed, the
same presently handling 3 crore lpd in over 450 plants.
• The world’s largest liquid milk plant is located in Delhi,
handling over 8,00,000 ltrs/ day.
• India’s first automated dairy located in Gandhinagar,
Ahmedabad. Owned by Gujarat Co-operative Milk
Marketing Federation in Anand, with annual turnover of
more than Rs.23 crore.
2
• 65% of the world buffalo milk is produced in India.
 ORGANISATION PROFILE
STATUS A co-operative society registered under the Co operative
Act 1959.
YEAR OF EATABISHMENT 1986
NATURE OF BUSINESS Procuring & Marketing of Milk, Production & Sale of
Milk Products.
SHARE CAPITAL 3 Crores approx.
PLANT CAPACITY 2 Lakh liters/Day
Milk Powder 12,000 T /Day
Butter 6,000 T /Day
Ghee 6,000 T /Day
MILK CHILLING CENTERS AND Gadag 20,000 LTD
CAPACITY Haveri 20,000 LTD
Hirekerur 20,000 LTD
Naragud 8,000 LTD
Ron 10,000 LTD
Sirsi 20,000 LTD

PRESENT VALUME OF Collection of Milk 85,000 LTD

ACTIVITY Sale of Milk 70,000 LTD

3
AREA OF OPERATION Dharwad, Haveri, Gadag, Karwar (DK).

TOTAL WORKERS 383 Workers (Including administrative employees)

LOCATION Lakamanahalli Industrial Area, Dharwad.

BRAND NAME NANDINI, SHUBHAM

CO-OPERATIVE 460 Societies

SOCIETIES AT
VILLAGE LEVEL

VISION STATEMENT Total quality ,Honesty, Discipline ,Cleanliness

Transparency, Sincerity and dedication
Co-operation free of politics, Sovereignty
Respecting each other's opinions, ideas & feelings.

MISSION STATEMENT To enhance milk production and procurement and

maximize returns to milk producers by finding
good market for milk and milk products there by
contribute towards viability of milk union.

4
 PRODUCT PROFILE

 Milk
Toned Milk(3% FAT and 8% SNF)
Double toned Milk(1.5% FAT and 9% SNF)
Standard Milk(4.5% FAT and 8.5% SNF)
Shubham Milk( 6% FAT and 9% SNF)

 Milk Products
Ghee, Butter, Butter Milk, Paneer, Lassi, Pedha,
Packed Curd, Pot Curd and Khove.

5
 RESEARCH DESIGN
 NEED FOR THE STUDY:
Milk business is highly competitive. Leading milk
suppliers like ‘Nandini’ need to understand the
consumer preference in selection of a particular
brand.
The present project work is expected to give
some insight with regard to consumer
preference .This information can help the
company to review this strategies to excel in the
competitive business.

6
 OBJECTIVES AND SUB-OBJECTIVES OF THE
RESEARCH UNDERTAKEN
 Objective:
To find out the changing preferences of households buying milk in
Dharwad city .

 Sub Objectives
1) To understand the awareness level of respondents regarding
various brands of milk available in Dharwad City.
2) To ascertain the various reasons contributing to the purchase
of milk by respondents in Dharwad city.
3) To find out the satisfaction level of respondents for Nandini
milk.
4) To analyze the role of the retailers in the sale of Nandini milk
in Dharwad city.
5) To analyze the effect of promotional strategies used by Nandini
milk.

7
 RESEARCH METHADOLOGY
 Primary and secondary data has been collected to carry out
research work.
 There is separate well structured questionnaire for households
and retailers, also made interaction with the managers and
employees of ‘Nandini’ Milk to get the data.
 Non Probabilistic convenience based sampling is used by
taking 75 households and 25 retailers as sample size.
 Frequency distribution and MS-EXCEL software package is
used as analytical tools.
 Study is restricted to Dharwad city.
 Time taken 60 days( 15-June-09 to 15-Aug-09)

8
 ANALYSIS AND INTERPRETATION
FOR RETAILERS:
Q No.1: Which all brands of milk Q No.2: Does the consumer
do you sell? ask you for a particular brand
Milk?
76%

80%
2
4% 16 70%
16 Nandini
28%
60%
28% S rikrishna
B arat Dairy 50%
A rokya 40% 24%
A ditya
6 30%
9 11% Others
7 20%
16% 13%
10%
0%
Y es No

Interpretation: Interpretation:
Only 28% of the retailers are Most of the households are
selling Nandini Milk, specific about the brands.
remaining 72% of them
selling other brands.
9
Q.No.3: Ranking of preference of brands Complaint Handling:

12 11 12

10
10 10

R ank 1
8 8 H ig h ly S a t
R ank 2 7
S a t is fie d
R ank 3 6
6 5 6 N e u t ra l
R ank 4 5
4 4 4 Not S at
R ank 5
4 3 3 33 3 4 H ig h ly N o t S a t
R ank 6 3 3 333
2 2 2 2 2 2 2
2 1 1 111 1 1 2 1 1 1
000 000 0 0 000 00 000 0 0 0 0 0 0 0 0 0 0 0 000
0 0
N a n d in i S rik ris h n aB a ra t D a iry A ro k y a A d it y a O t h e rs N a n d in i S rik ris h n Ba a ra t D a iryA ro k y a A d it y a O t h e rs

Interpretation: Interpretation:
Most of the households Aditya Milk is doing well in
prefer Nandini Milk only. this attribute followed by
Nandini, Bharat Dairy,
Srikrishna and Arokya.

10
 Packaging: Credit Facility:
16
15
10
9
14 9
8
12
11
Highly Sat 7 H ig h ly S a t
10 6
Satisfied 6 S a t is fie d
8 7 7 Neutral
5
5 N e u t ra l
5 Not Sat 4 4 4
6 4 Not S at
Highly Not Sat 33 3 3 3
4 3 3 H ig h ly N o t S a t
2 2
2 2
2 1 1 1 1 2
1 1 1 1 1
00 0 00 0 000 00 00 0 0 000 1
0 0 0 0 0 0 0 0 0 0 0 0 0
Nandini SrikrishnaBharat Dairy
Arokya Aditya Others 0
N a n d in i S rik ris h nBa a ra t D a iryA ro k y a A d it y a O t h e rs

Interpretation: Interpretation:
Aditya is good in this Most of the Nandini
attribute followed by retailers are not happy with
Nandini, Arokya, Bharat this attribute.
Dairy and Srikrishna.

11
Availability on Time: Availability in Desired
Qty.
14 12 11
12
12 10 9

10
H ig h ly S a t 8 H ig h ly S a t
8 7
8 S a t is fie d S a t is fie d
7
N e u t ra l 6 5 5 5 N e u t ra l
6 5 5 Not S at Not S at
4 4
4 H ig h ly N o t S a t 4 H ig h ly N o t S a t
4 3
3
2 2 2 2
2 2 1 11
1 1 1 1
0 0 0 0 0 00 0 0 0 0 0 000 000 000 000 000 000 000
0 0
N a n d in i S rik ris h nBa a ra t D a iryA ro k y a A d it y a O t h e rs N a n d in i S rik ris h nBa a ra t D a iryA ro k y a A d it y a O t h e rs

Interpretation: Interpretation:
Aditya is doing well in this In this attribute also
attribute compared to Aditya is doing well
Nandini and others brands of followed by Nandini,
milk. Arokya, Srikrishna and
Bharat Dairy.
12
 Service: Margin:
14 13 12
12 10
12 10

10 8
H ig h ly S a t 8 H ig h ly S a t
7
8 S a t is fie d S a t is fie d
6 N e u t ra l 6 5 5 N e u t ra l
6 5 Not S at N ot S at
4 4 4
4 H ig h ly N o t S a t4 H ig h ly N o t S a t
4 3
3 3
2 2 2
2 2 1 1 11
1 1 1 1 1 1
00 000 000 0 0 0 0 000 0 0 0 0 0000 000 0 0000
0 0
N a n d in i S rik ris h nBa a ra t D a iryA ro k y a A d it y a O t h e rs N a n d in i S rik ris h nBa a ra t D a iryA ro k y a A d it y a O t h e rs

Interpretation: Interpretation:

Nandini and Aditya are doing Majority of the Nandini retailers

are not satisfied with the margin
well in this attribute
given by the company.
compared to other brands of
milk.

13
Q No.10: Promotional Q No.11: Ranks to highest
activities. selling brands.
9 10
8 8 9
8 9
7
7 8
7 Rank 1
6 V e ry H ig h 66
5 5 Rank 2
H ig h 6
5 Rank 3
4 4 N e u t ra l 5
4 4 4 4 4 Rank 4
3 3 Low 4
3 Rank 5
3 V e ry L o w
2 3 Rank 6
2 2 2 22 2
2 2
1 1 11 1 11 1 1 11
1 1
0 0 0 0 00 0 0 0 0 00 0 00 000 0 000 00 000 00 00
0 0
S rik ris h n a N a n d in i B h a ra t D a iryA ro k y a A d it y a O t h e rs N a n d in i A ro k y a B h a ra t D a iry
S rik ris h n a A d it y a O t h e rs

Interpretation: Interpretation:
Promotional activities used Most of the retailers gave
by Nandini are not enough. rank 1 to Nandini as highest
selling brand in their retail
outlets.

14
 FOR households:
Q No.1: which are the Brands of Q No.2: Tick the reasons for
milk you are aware of? which you buy milk?

O th e rs
10%

24 N a n d in i 6%

A ro k y a 6 0
4%
T e a a n d C o ffe e
P re p e ra t io n o f C u rd
45 D ire c t C o n s u m p t io n
A ll t h e P u rp o s e s

B h a r a t S D r ia k i rr yi s h n a 80%

30 35

Interpretation: Interpretation:
Most of the households are Most of the households use
aware of Nandini milk(80%). milk for all the purposes
(80%).

15
Q No.3 which of the brands you Q.No.4: what are the reasons for
prefer or buy? choosing the most preferred brand
above?
1 20%
1 00%
O the rs 1 00%
A ro k y a 4% S rik ris hn a
32 % 40 % 80% 72%

60% 55 %
39% 3 9% 40 %
40%
B h a ra t D airy 21 % 21%
N an d in i 20 % 20%
6% 7%
47 % 0% 0% 0% 0 %0%0 %
0%
Q u ality P ric e A va ilability O the rs

R a nk 1 R an k 2 R a nk 3 R a nk 4
S rik ris h n a B h ara t D a iryN a n din i A rok y a O th e rs

Interpretation: Interpretation:

Only 47% of the households Most of the households give

prefer or buy Nandini milk. importance to quality and
price while purchasing Milk.

16
Q.No.5: Do you buy Nandini? Q.No.6:which of the brands of
Nandini milk do you prefer or buy?

Y es 34%
47% S hubham
G o o d life

No D o u b le T o n e d
52%
53% Toned

14% 0%

Interpretation: Interpretation:
Only 47% of the households Most of the households use
of the households buy Shubham Brand of Nandini
Nandini Milk. milk.

17
Q.No.7: How many ltrs of Nandini Q.No.8: How did you come to
milk do you consume per day? know about Nandini Milk?

14 37%
34%
12 O t h e rs
26% A d ve rt is e m e n t
5%
7%
10
R e la t ive s a n d P a m p h le t s
N e ig h b o rs 19%
8
26%
6

2 3%
T h ro u g h F rie n d s
0%
0 43%
1/2 ltr 1 ltr 2 ltrs 3 ltrs More than 3 ltrs

Interpretation: Interpretation:
Most of the households use 1 Only 7% of the households
to 2 ltrs of Nandini Milk per came to know about Nandini
Day. through Advertisements.

18
Q.No.9: Based on your Q.No.10: Satisfaction level with
experience tick the relevant respect to Nandini milk.
answers with respect to Nandini
Milk.
70% 25
63% 22
60% 57% 20
51% 20
17
16 16
50% 14 14
40% 15 13
40% 12 12 12
10
29% 29% 29%
30% 26% 10 8 8
7
2 02 %0 % 6 6
5 5 5 5
20%17% 14%
17%
5 4 4 4 4
3 3 3
9% 9 %9 % 1 1 % 9 % 9 % 8%
2
1
2
1 1 1
2
1 1
10% 6% 5% 6% 6% 0 0 0
2% 0
0% T h ik n e s s To af s t e S p o ila g e S m e ll P ric e A va ila b leA inva ila b Ple a c k a g in g
T e a a n d C oPffer eep e r a t io n o Df i r e c t U s a g e o n S pBer ca ina dl N a m e m ilk R a te D e s ir e d o n T im e
C u r d s C o n s u m p t i o no c c a t i o n Q ty

N o t a t a ll P r eN feo rt r eP dr e fe Nr r e ud t r aP l r e fe r r eH di g h l y p r e fe r r e d N o t a t a ll SN ao tt S aNt e u t raSl a t H i g h l y S a t

Interpretation: Interpretation:
Many of the Nandini users Many of the Nandini milk
use milk for the preparation households are not satisfied
of Tea/coffee and for direct with the Thickness of milk,
consumption. Smell and Price of the Milk.
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Q.No.11: Does your Retailer accept Q.N0.12:Does your retailer
Nandini Milk when it is returned back suggest other brand when you
due to spoilage?
go to purchase milk?

Y es
14%

No
46%

Y es
54%

No
86%

Interpretation: Interpretation:
Most of the retailers does Most of the retailers suggest
not accept back milk when it other brands of milk to
is spoiled. households when they go to20
Q.No.13: Which are the brands he suggests?

50%
10
9
8
7
6 25%
5 20%
4
3
2 5%
1
0
Arokya Aditya Srikrishna Others

Interpretation:
Most of the retailers suggest Aditya
brand milk to households when they
go to buy Milk.

21
 RESEARCH FINDINGS
 Only 28% of the retailers sell Nandini Milk.
 Most of the households ask for a particular brand of milk.
 Over all we can say that Nandini is highly preferred followed
by Aditya, Arokya, Bharat dairy, Srikrishna and Others.
 Most of the retailers are not happy with the credit facility
given by Nandini and complaint handling by the company.
 Most of the retailers are not happy with the margin provided
by Nandini.
 Most of the retailers say promotional activities used by
Nandini are not enough.
 56% of the retailers gave rank 1 to Nandini as highest selling
brand in their outlets.
 80% of the households are aware of Nandini milk (Brad
Nane).

22
• Most of the households give importance to Quality and price.
• Most of the Nandini households buy Shubham brand of
Nandini.
• Many of the households consume 1 liter to 2 liters of milk
per day.
• Only 7% of households came to know about Nandini
through advertisements.
• Most of the households use Nandini for all the purposes.
• Most of the households are not happy with the thickness of
Nandini Milk.
• Most of the Nandini households are not happy with the
spoilage rate and price of the milk.
• More than 86% of the retailers do not accept Nandini milk
when it is returned back due to spoilage.
• More than 54% of retailers suggest other brands to
households when they visit the outlets.
• Majority of the retailers suggest Aditya.

23
 RECOMMENDATIONS
From the analysis of retailers survey:
Retailers are very important to sell the goods which are manufactured by the
company, so the company should take at most care of the retailers.

 Only 28% of the retailers are selling Nandini in their outlets, so the company
should engage some more retailers and open some more ATM’s, Day
counters, milk parlors. This will help to attract more households and there by
sales will increase.

 Only 50% are happy with the complaint handling by Nandini, so company
should visit its retailers once in week and solve the complaints of its retailers.

 More than 50% of the retailers who sell Nandini milk are not satisfied with the
margin given by the company, so the company should try to increase the
margin and which should be competitive one. If the company gives competitive
margins then more number of retailers will come forward to sell the Nandini
milk.
 Some of the retailers are not happy with the credit facility given by the
company, so company should take some necessary actions to satisfy the
retailers.

24
From the analysis of households survey:

• Only 80% of the households are aware of Nandini milk (Brand Name).
When households asked told that they came to know about Nandini
through relatives and friends. Only 7% of the households are came to
know about Nandini through advertisements, so company should give its
effective ads in papers, TV channels, magazines and in internet.
Company can give adds twice or thrice in a month.

•The good life and Double toned milk of Nandini are not performing well
in market, so company should make more publicity about these two
brands.

Most of the households give Rank 1 for quality, so Nandini should take
some following steps.

•Most of the households are not happy with Thickness of milk, Spoilage
Rate and Smell, so company should take care of these things.
25
 CONCLUSION

To excel in the highly competitive business the company

needs to evolve their production, marketing and pricing
strategies effectively. For doing this a clear perception about
consumer preference with regard to product and service
quality and price is of utmost important. The present project
work provides some insight in this matter.

The study suggests that The packing is good.The company

has to reinforce its sales promotional activities by enhancing
advertisements in Television, newspaper and displays. All
positive aspects of Nandini milk must reach the public.

The company needs to look for quality improvement with

regard to thickness, smell and spoilage rate, pricing policy
needs to be reviewed and made competitive. Retailers are
expecting higher margin, hence pricing policy should be
reviewed to keep the retailers satisfied and enthusiastic in
the promotion of sales of Nandini milk.

These efforts may go a long way in providing adequate public

satisfaction about Nandini milk. This well helps the company
26
to excel in their businesses.
27