1

PREFACE
For management careers, it is very important to develop managerial skills .In order to achieve positive and concrete results, along with theoretical concepts, the exposure of real life situation existing in a corporate world is very much needed. To fulfill this need, this type of practical training is required. I underwent summer training in VERKA MILK PLANT, located in PATIALA. It was my fortune to get training in a very healthy company. I got great opportunity to view the overall working of the organization. In the forthcoming pages, I have attempted to present a report covering different aspects of my training.

CHAPTER I DAIRY INDUSTRY IN INDIA

DAIRY INDUSTRY IN INDIA

In India, dairying has been practised as a rural cottage industry since the remote past. Semi-commercial dairying started with the establishment of military dairy farms and cooperative milk unions throughout the country towards the end of the nineteenth century. The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. More than 2,445 million people economically active in agriculture in the world, probably 2/3 or even more of them are wholly or partly dependent on livestock farming. India is endowed with rich flora & Fauna & continues to be vital avenue for employment and income generation, especially in rural areas. India, which has 66% of economically active population, engaged in agriculture, derives 31% of Gross Domestic Product GDP from agriculture. The Development of Dairy Industry in India has been acknowledged the world over as one of the most successful development programmes in the world. Today, milk is India's largest 'Crop' in terms of its output value, even surpassing the major cereals like rice and wheat. India's milk comes from more than 70 million small producers with an average herd size of just about two animals. Today our dairy sectors employees 8% of the country's labour force and contributes 9% of our GDP. About 15 - 40% of the farmer's monthly income comes from milk. Thus, the dairy industry has had both a social and an economic role to play in the development of rural India. Dairy in India is unique concerning availability of large proportion of buffalo milk for processing. The dairy business in India is estimated at Rs.800 billion.
4

The major milk producing states in the country are Uttar Pardesh, Madhya Pradesh, Punjab, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Haryana and Tamil Nadu accounting for about 75% of the total production of milk in the country. Uttar Pradesh is the largest milk producing state, whereas Punjab has distinction of having the highest per capita milk availability.

CHAPTER II ABOUT MILKFED

HISTORY

Milkfed is not an unknown name for the people of Punjab. It is very popular among the people. There is a very long history behind this popularity. In 1959, in a village named 'Verka' near Amritsar, Chief Minister of Punjab Sardar Partap Singh Kairon established a Dairy Development Corporation for safeguards of farmers and increase dairy business. After some times four more Milk Plants were established i.e. in Chandigarh, Patiala, Patiala and Bhatinda. Thereafter it progressed and the number of Milk Plants roses to 8 Plants upto 1980. Before 1981 it is fully under the control of Punjab Govt. But after it in 1981 the Govt. has developed its name from Punjab State Co-operative Milk Producers Union Ltd. into MILKFED Punjab. All the plants were controlled by Head Office which is established at Chandigarh. Only one balance sheet was prepared for all plants in Punjab and Profit & Loss for all the plants was prepared collectively. But in 1981 all plants started to make their own Balance Sheet and calculate Profit & Loss for their own plant. The fully Co-operative Society System was adopted and presently is in continue.

MILKFED-PUNJAB

The Punjab State Cooperative Milk Producers' Federation Limited popularly known as MILKFED Punjab, came into existence in 1973 with a twin objective of providing remunerative milk market to the Milk Producers in the State by value addition and marketing of produce on one hand and to provide technical inputs to the milk producers for enhancement of milk production on the other hand. Although the federation was registered much earlier, but it came to real self in the year 1983 when all the milk plants of the erstwhile Punjab Dairy Development Corporation Limited were handed over to Cooperative sector and the entire State was covered under Operation Flood to give the farmers a better deal and our valued customers better products. Today, when we look back, we think we have fulfilled the promise to some extent. The setup of the organization is a three tier system, Milk Producers Cooperative Societies at the village level, Milk Unions at District level and Federation as an Apex Body at State level. MILKFED Punjab has continuously advanced towards its coveted objectives well defined in its byelaws. Milkfed is an Apex Body at state level. It has 11 Milk Unions at district level operating 10 Milk Plants and more than 5,000 Cooperative Societies at village level with a total of 3 lakh members.

OBJECTIVES OF MILKFED

To provide remunerative prices to milk producers by value addition and marketing of produce. To provide technical inputs for enhancement of milk production on the other hand. To carry out activities for promoting production, procurement processing and marketing of milk and milk products for economic development of the farming community; to develop and expand such other allied activities as may be conducive for the promotion of the dairy industry, improvement and protection of milch animals and economic betterment of those engaged in milk production; To purchase and/or erect buildings, plants, machinery and other ancillary equipment to carry out business; To study problems of mutual interest related to production, procurement and marketing of dairy and allied products; to purchase commodities from the member and deal with non-members for marketing, dairy and allied products subject to such conditions as may be decided by the Board from time to time; To establish research and quality control laboratories; To make necessary arrangements for transfer of milk, allied milk products and commodities; to market its products under its own trade name/brand name with its Member Unions trade mark/brand;

To promote the organization of primary societies and assist members in organization of the Primary Societies; and

To plan development strategies and programme to increase the volume of procurement and production of the Federation and its members Unions and for its affective marketing.

ACHIEVEMENTS
On the basis of quality with efficient administration, MILKFED has not only established new mile stone of providing services to Dairy farmers but scaled new heights in delighting esteemed customers also. This has resulted into tremendous achievements in all fields. Milkfed not only provides assured market to milk producers but also carries inputs to enhance milk to their doorsteps. The District Cooperative Milk Producers Unions and Milk Plants have attained self sufficiency or are on the threshold of attaining it. Milkfed has played a very vital role in providing a strong base for remunerative price to the producer; they get more money for their milk and payments are timely. In addition technical input services in feeding, breeding and management are easily accessible. Value addition is one of Milkfeds thrust areas and the plants produce not only pasteurized, homogenized milk but also buttermilk, cream, cheese, ice cream, butter and clarified butter-oil (ghee) and several other products. The Milk Unions have marketed milk and milk products of the value of Rs 202.87 crore during the year under report.As a cooperative, Milkfed is also instrumental in empowering milk producers, especially women and poor people, and fostering management skills. Milkfed runs regular courses for members in Cooperative Development.

10

1.

MILKFED is providing technical input services like animal healthcare, supply of quality cattlefeed, fodder seeds etc. at the door steps of the dairy farmers under its Productivity Enhancement Programme.

2.

For producing quality technical services MILKFED has established its own two cattle feed plants having capacity of three hundred metric ton per day.

3.

Dairy Farmers are being encouraged to produce quality milk under the Clean Milk Production Programmes by paying premium price for quality milk.

4.

MILKFED installed a bactoscan in its Milk Union, Patiala which is first in India for determining the bacterial counts in raw milk at different stages.

5.

During the last 3 years, 8 Milk Plants and 2 Cattle Feed Factories of MILKFED, Punjab were accedited with ISO9002 and IS-15000 (HACCP) Certification.

6.

In view of today's interest of consumers in getting quality and safe products, MILKFED is manufacturing quality milk and milk products as per International Standards and also exploring the possibility of manufacturing milk products of consumer's choice.

7.

MILKFED has launched its own interactive Website on Internet for its prospective customers which can be accessed by clicking http//www.milkfed.nic.in

8.

MILKFED introduced liquid milk in new design packing with Mnemonic Symbol of Cooperative Milk in all the District Milk Unions.

9.

The turnover of MILKFED, Punjab during the year 2006-2007 was arrived at Rs. 725 crore.

11

MAJOR SCHEMES
TECHNICAL INPUT PROGRAM: Technical input services are given to cooperative members at their door step. The aim is to increase milk production and procurement, and use the milk plants to capacity so that they generate the maximum possible profits. In order to save milk animals from heat stress, animal cooling units have been provided to milk producers and these have effectively checked the fall in milk production during summer. THE SOCIAL OBLIGATION & EMPLOYMENT: The cooperatives are also a channel through which people can be educated about many things. Through them the state is able to spread information about family planning, nutrition and health. Membership in the cooperative confers better social standing and confidence to move ahead in life. Apart from the main arena of collecting more and more milk and enrolling more and more milk producers, Milkfed and its units have a work force of about 5000 employees. Every morning and evening milk is lifted from the villages through private vehicles this means regular employment to about 600 transporters, most of whom are self-employed. Similarly, lay simulators and first aid workers also employment and at the same time provide input services to milk producers in their villages. Some 10,000 workers man the milk procurement and technical input operations.

12

MILK DAY CELEBRATION: The Unions hold regular Milk Days in the several zones in their districts. Milk Days serve as a forum for interaction between members, they strengthen participation of the village cooperatives and let members see their cooperatives at work. Milk Days also give the District Unions feedback concerning problems and the shortcomings in the cooperatives this is essential for nipping trouble in the bud. Presidents, secretaries and women members of village cooperatives assemble at zonal Milk Days; after a complete round of zonal Milk Days in all the zones of a particular Union, a Central Milk Day is organized at the Union headquarters. TECHNOLOGY MISSION ON DIARY DEVELOPMENT: To accelerate the pace of increasing rural income and employment through Diary Development, the Government of India has set up the Technology Mission on Dairy Development. Under this program, the Operation Flood program is dovetailed with state government programs of Animal Husbandry, Integrated Rural Development Program and other schemes to make coordination easy and effective. BREED IMPROVED PROGRAM: Milkfed has imported four Holstein-Freisian bulls and two Jersey bulls from Denmark with the financial assistance from the National Dairy Development Board. The average Dam Yield of Holstein Freisian and Jersey is 10,000 and 6,000 litres per lactation respectively. The federation has also strengthened the Frozen Semen Station with the financial assistance from Technology Mission on Diary Development. 986 elite buffaloes have been selected from various milksheds for breeding with progeny-tested buffalo bulls. Their genetic potential will be exploited with the help of embryo transfer. The Patiala Milk Union now
13

provides high-technology embryo transfer facilities. This facility will make substantial improvement in the breed of milk animals and contribute to the enhancement of milk production in the state. A Progeny Testing Association has been formed in the name of "Patiala Milk Union Research and Development Association" to continue improvement in the dairy herd through progeny testing by adopting a project approach. COOPERATIVE DEVELOPMENT PROGRAM: To create a strong cooperative base, increase in member participation at the grass roots through Cooperative Education with necessary managerial and advisory input support is absolutely essential. In view of this, a Cooperative Development Program in some of the selected milksheds in the state has been launched with the financial assistance of the National Dairy Development Board. Results from the unions of Jalandhar, Patiala and Patiala have been encouraging and the program is being extended to Bhatinda, Amritsar and Ferozepur. REGIONAL DEMONSTRATION AND TRAINING CENTRE : The National Dairy Development Board established its Regional Demonstration and Training Centre at Jalandhar to train members, society secretaries, first aid workers, layinseminators, veterinary officers and management committee members of Cooperative Societies.

FODDER SEED DEVELOPMENT : Cows do not produce ample milk without ample fodder. Through research and seedfarms, Milkfed has worked t provide the farmers high yielding forages at low cost. Fodder Development activities initiated by Milkfed have created a good demand for improved fodder

14

seeds in Punjab. Milkfed established its own seed processing unit in 1985, the unit is automated and has the capacity to grade 16 million tons of fodder seed per day. BALANCED CATTLE FEED : Milkfeds two cattle feed plants can produce 300 million tons cattle feed and 5 million tons of urea molasses lick-brick per day. The feed being produced at these plants is as per BIS type II specification and By-Pass Protein Feed. A high energy cattle feed and mineral mixture is also being produced. The feed manufactured is being sold under brand name VERKA. The entire production is sold to the Milk Unions for onward distribution to dairy farmers through the Milk Cooperative Societies and if there is any surplus, it is sold in the open market and to sister federations. WOMEN DAIRY PROJECT: Household level dairying is largely the domain of women especially in small and marginal household families. In view of this fact, Milkfed has undertaken Women Dairy Project on six districts namely Hoshiarpur, Ropar, Patiala, Jalandhar, Patiala and Amritsar with an objective to empower rural women in the field of dairy. This Programme is being implemented under Support to Training & Employment Programme (STEP) with the assistance of Government of India. Under this programme, 390 women societies with b1990 women beneficiary members will be organised. CLEAN MILK PRODUCTION PROGRAMME: For improving quality of raw milk at Milk production level, 125 Bulk Milk Coolers have been installed in the societies and many more in pipe line. Besides, more than 1000 Automatic Milk Collection Stations have also been provided for bringing efficiency and total transparency

15

in the system. Traditional manual method of milk testing at society level is being replaced with Electronic Milk Testers. SETTING UP OF BIG COMMERCIAL DAIRY FARMS: With an objective to establish more than 100 big Commercial Dairy farms, Milkfed has executed MOU with Allahabad Bank and Oriental Bank of Commerce for arranging soft term loans to progressive dairy farmers.

LOOKING BEYOND
1. Under its vision - 2005 Plan the number of Milk Producers' Co-operative Societies will increase to 8000 and membership to 4.75 lakhs. 2. To improve the quality of milk at village level, it has been planned to provide Milk Bulk Cooling Unit in all the MILKFED areas in a phased manner. 3. To bring transparency in all the milk collection, fat testing and payment, electronic milko-testers & automatic milk collection centres will be provided at village level Dairy Cooperative Societies. 4. Expansion of butter manufacturing capacity and reconditioned butter manufacturing machinery will be installed. 5. Expansion of existing ice cream manufacturing capacity and set up additional Ice Cream Plant at Jalandhar. 6. Milkfed strives to give better and remunerative price to the farmers to make dairy attractive and sustainable profession.
16

7. 8. 9. 10. 11. 12. 13. 14 15.

Providing improved technical input services to farmers. Setting up big commercial farms. More stress on clean milk production programme. Rural women empowerment. Massive modernisation of process and operations. Enforcement of stringent quality parameters. Strenghthing market base with specific stress on consumer market. Dynamic enhancement in Verka product mix. To launch new value added milk products including long shelf life panner etc.

17

CHAPTER III ABOUT THE UNIT

18

INTRODUCTION TO VERKA MILK PLANT PATIALA

We need to go back to the genesis of the Co-operative movement in Anand. It started in pre-independent days when the farmers of Kheda sought the advice of Sardar Vallabhai Patel on how to deal with their exploitation. Sardars advice was that they organize themselves into a Cooperative. He sent his trusted lieutenant, Sh. Morarji Desai, to assist them in settings this up. Sh. Morarji Desai, his first meeting with farmers picked up a reluctant Tribhuvandas Patil, who later became the President of the Gujrat Pradesh Congress Committee, to head the farmers Cooperative. So, you see, the Dairy Co-operative Movement was inspired by the great leaders & thereafter natured by a State Government that did not interfere in their business. In 1964, when Sh. Lal Bahadur Shastri was, the then Prime Minister, spent a night in a village in Anand, he understood that the success of the co-operatives was that it was a structure that was owned by the producers & combined power of farmers with Professionals that they employ to run their business. MILK PLANT, PATIALA was set up by THE PUNJAB STATE CO-OPERATIVE MILK PRODUCERS FEDERATION Ltd. popularly known as MILKFED, which was financed by PUNJAB GOVERNMENT & NATIONAL DAIRY DEVELPOMENT BOARD (NDDB). It was formed with a view to integrate the production of milk & its procurement, processing & marketing in Punjab on ANAND PATTERN. The ANAND PATTERN is a world famous 4-tier system of dairy development in India. In foundation, there are a large number of small milk producers in villages, who are the members of the village level Co-operative Dairy/Societies. Such societies form a District Level Marketing Federation, which looks into aspects of marketing of milk & milk products, with the aim of giving better benefit to producers & ensured supply

19

quality products to the consumers at reasonable rates. The profits gained goes in giving social monitory benefits to the producers. The fourth component added recently is a Cluster of State Level Milk Marketing Federations called National Dairy Co-operative Dairy Federation of India (NCDFI). In this system, from bottom to top, there is full participation of the farmers who are producing milk.

NAME OF THE ORGANIZATION

The name of the organization is The Patiala District Milk Producers Union Limited, Patiala.

MANAGEMENT DIRECTORS

CONTROL

&

COMPOSITION

OF

BOARD

OF

The Board of Directors shall have 19 Directors, comprising: 12 elected representatives of affiliated societies. Registrar, Co-op. Societies, Punjab, or his nominee. 1 nominee from Milkfed. General Manager (CEO) of the plant, Ex-offico Member/ Secretary with the responsibility of day to day management & operation. 1 nominee from National Dairy Development Board. 3 members nominated by Punjab Government.

# ACHIEVEMENTS

20

Milk Procurement: - Milk Plant Patiala procured about 1, 00,000 kgs of milk per day through 19 Milk routes in the Flush Season. The Plant is procuring milk from 494 villages by organizing village level Milk Producers Co-operative Societies

Animal Health Care & Other Technical Inputs: - In addition to Organizing the remunerative Milk market system Through milk producers cooperative societies, Milk Plant is also providing regular health coverage by running 2 vet nary routes and 55 Artificial Insemination Service Stations at Society level.

Genetic Improvement of Milch AnimalsUnder this, lay inseminators are trained who are in-turn, doing Artificial Insemination at the door steps of Dairy Farmers.

Supply of Balanced Cattle Feed: - Special attention has been paid to the supply of balanced cattle feed to the milk producers so as to enhance the milk production. Four types of cattle feeds are being supplied i.e. ISI Type, High Energy, Bye Pass Protein Feed & Buffalo super feed to meet the requirements of Milk Producers.

Supply of Improved Varieties of Fodder Seeds: - Cows does not produce ample milk without ample fodder. Through research and seed-farms, Milkfed has worked t provide the farmers high yielding forages at low cost. Fodder Development activities initiated by Milkfed have created a good demand for improved fodder seeds in Punjab. Milkfed established its own seed processing unit in 1985, the unit is automated and has the capacity to grade 16 million tons of fodder seed per day.

Quality Assurance Program : Quality Assurance Program (QAP) which is a part and parcel of Dairy Plant Improvement Program (DPIP) was taken up in Patiala Milk Union with the Technical guidance from NDDB. The main
21

objective of the program is to improve efficiency of Plants coupled with loss management to bring down the cost of production, improve the quality of milk and milk products manufactured to ameliorate the general hygienic and house keeping standards and above all to enhance the profitability and financial viability of the Milk Plants to enable milk producers to get better price for their produce. Women Dairy Project: Household level dairying is largely the domain of women especially in small and marginal household families. In view of this fact, Milkfed has undertaken Women Dairy Project in six Milk Unions namely Hoshiarpur, Ropar, Patiala, Jalandhar, Patiala and Amritsar with an objective to empower rural women in the field of dairy. This Programme is being implemented under Support to Training & Employment Programme (STEP) with the assistance of Government of India. Under this programme, 390 women societies with 19860 women beneficiary members will be organized. Clean Milk Production Programme: For improving quality of raw milk at Milk production level, 8 Bulk Milk Coolers have been installed in the Plant and many more in pipe line. Besides, more than 1000 Automatic Milk Collection Stations have also been provided for bringing efficiency and total

22

transparency in the system. Traditional manual method of milk testing at society level is being replaced with Electronic Milk Testers. Automatic Milk Collection Stations : These units are installed under quality assurance & to make milk procurement system transparent by creating awareness among the milk producers. Milk union Patiala has installed 45 AMCs in its milkshed area. We are able to win the confidence of the milk producers by providing this system to the societies.

ISO: 9001/IS: 15000(HACCP) CERTIFICATION

Todays consumer is not only well informed about the value of his money but he also makes sure about the qualitative features of the product before deciding to purchase it. The phase of Liberalization & new technology has further intensified the fierce competition in the market. Hence, Milk Plant Patiala felt the necessity to give greater emphasis on the prime demand of the consumers i.e. assured safe & quality milk products so as to maintain long-term relation with the consumers.
As a mark of having achieved requisite quality standards, Milk Plant Patiala has already obtained ISO: 9001 Quality Certification integrated with IS: 15000(HAACP)

CERTIFICATION from THE BEREAU of INDIAN STANDARDS w.e.f 25th October 2000.

23

With these certifications, Milk Plant fully geared itself to compete its Milk & Milk products at global level in addition to market the same in the domestic market.

PERFORMANCE OF MILK UNIONS / MILK PLANTS

They are operating 9 milk plants through collection of milk through Milk Producers Cooperative Societies. Except milk plants at Ropar & Patiala districts, others are having net cumulative losses. Jointly, Milk Unions are not in profit for the last 2 years i.e incurred net loss of Rs.6.67 crore & Rs.8.14 crore in 1999-00 & 2000-01 respectively but did contribute Rs.6.58 crore as net profit in 1998-99. One milk plant at Chandigarh is owned by MILKFED. The accumulated losses of the Milk Unions touched the level of Rs.76.35 crore upto 2000-01 as shown in Table below:

CATTLE FEED PLANT

Two cattle feed plants at Bhattian (Distt.Patiala) with 200 MT per day capacity and Ghania Ke Bangar (Distt. Gurdaspur) with 100 MT per day capacity produced 57785 MT of cattle feed and earned a net profit of Rs.1.1 crore even at 80% capacity utilization in 2000-01. The Commission, however, is unable to appreciate its market share vis-a-vis its price for want of adequate information.
Verka is Co-Operative Company and is former oriented autonomous or organization based on CoOperative pattern. It is the king of Punjab Region as far as Milk Procurement is concerned. Its daily Milk production is around 2.00 lacs liters per day on an average and that is why huge amount of Milk production has become its core competency. It produces many daily products.
24

"MILKFED" is a group of Milk Union established under operation flood program as the implementing agency by the government of Ropar and metropolis Chandigarh. The Ropar district co-operative milk produces union was established in the year of 1980. The main objectives for its establishment were:

1. To create an organized factor to develop and command a major share of urban milk market of
Chandigarh.

2. To provide year around remuneration price to the small rural Milk producers organized into cooperative.

3. To provide quality milk and milk produces to the consumers. 4. The milk plant carries out activities conductive to the economic development to agriculturist by
organizing effective production, process and marketing of commodities. The milk plant has installed capacity of process 1,00,000 litres of milk per day and it is registered handling capacity of 2,00,000 liters by the year 2008-09. The milk plant is managed by qualified professionals in the dairy field. The production facility are backed up by quality assurance, marketing training, financial management, data processing and other required services, providing a vibrant work environment to its personnel in pursuit of excellence.

The milk plant is committed to supply quality and safe milk and milk products to its esteem customers at the right time. The milk plant has introduced ISO 9001:2000. Management system and Indian standard of hazard analysis and critical points (HACCP)/IS: 15000-1998 to ensure highest quality products with built in safety to consumers. Recently, the Verka Milk Plant Patiala of Milkfed Punjab have bagged prestigious National Productivity Council Award at National level Competition in the field of dairy processing industries conducted by National Productivity Council of India, New Delhi.

1.1 HISTORY AND PRESENT POSITION OF VERKA

A. HISTORY OF VERKA The company has been well known by its brand name "VERKA" especially In Punjab and Haryana. Chandigarh Milk Plant was set up in year 1961-1962 to meet the milk initially. But it was not able to

25

fulfill the growing requirements of Chandigarh City. Due to this reason another plant set up in September 1980 at Patiala (Punjab), which is adjoining to Chandigarh.

MILK PLANT PATIALA

"The Ropar Distt. Co-op Producer Union" It is one of the "MILKFED" group located at S.A.S Nagar, Patiala (Punjab). It is registered on 05.07.1978 under Punjab Cooperative Societies Act, 1961. It started its activities on September 1980.

B. PRESENT POSITION OF VERKA

Presently it has 856 Societies and around 46000 members are supplying milk and making their contribution to the Patiala (Punjab) Plant as follows:-

1. 2. 3. 4. 5.

In Ropar District 520 Village Societies. In S.A.S Nagar, Patiala 164 Societies. In Fatehgarh District 109 Societies. In Patiala District 60 Societies. InUT 3 Societies.

In Ropar District three chilling centers are situated namely Morinda, Jhinjri and Nurpur.
The Milk Plant Patiala produces 2 Lakhs to 2.25 Lakhs liters of Milk per day during winter season and 1.50 Lakhs liters per day in summer season. About 2.00 Lakhs liters pasteurized liquid milk is being supplied to the citizen of urban area per day. The plant runs throughout 24 hours in three shifts at about 200% of its installed capacity manner with 500 employees. The plant is supplying milk mainly to the cities Chandigarh, Patiala and Panchkula also covering some adjoining cities of Himachal Pradesh and Haryana. It also produces PANEER, GHEE, LASSI, BIOYOGURT, GULAB JAMUN, KHEER, CURD, FLAVOURED MILK etc. All these products are marketed at the plant under the name "The Punjab State Co-operation Milk Producers Federation Ltd" under the Brand name of Verka Milk Plant".

1.2 ORGABNISATION NETWORK

26

For the smooth running of plant, various sections are managed by the management. Each and every activity is delegated to particular section. It is impossible for top management to take decision on every problem, so various tasks are delegated to various sections. These sections are interrelated to have frequent contacts with one another and it is easy to share the information. These integrated tasks teams handle their problems and make the supervision easy. The following are the sections in the Verka Organisation:

1. Procurement Section 2. Production Section 3. Quality Control Section 4. Marketing Section 5. Accounts Section 6. Administrative Section 7. Engineering Section 8. Purchase Section 9. Store Section 10. MIS Section
S ecurity S ection

1.3 NETWORK
Verka is having an apex body at the state land known as "MILKFED" Punjab, Chandigarh. To start with functions in various fields of different unions in different Districts and to operate with Dairying and Dairy Fields that is the operation flood with assistance of National Dairy Cooperation (NDC) Delhi and later on is launched to operate flood second who is affiliated to Punjab Milk Fed. It helps to its affiliated Districts Milk Co-operations in 11 Districts. These Districts Union are:-

1. 2. 3. 4. 5.

ROPAR PATIALA LUDHIANA FARIDKOT FEROZPUR

27

6. 7. 8. 9. 10. 11.

PATIALA BATHINDA GURDASPUR HOSHIARPUR JALANDHAR AMRITSAR

These unions in eleven districts of the state carry out smooth functioning of marketing, procurement, cattle breeding program though district co-operative unions.

1.4 PLANT AT A GALANCE

Establishment 1980 Brand Name Installed Capacity Status Head Office Plant

The Ropar District Co-operative Milk Producers Union Milk Plant, Patiala. : Verka 1,00,000 Liters ofMilk Per Day 2,00,000 Liters ofMilk per Day Co-operative Society Milkfed, Punjab, Sector 34, Chandigarh The Ropar District Co-operative Milk Producers Union Ltd. Milk Plant, S.A.S Nagar, Patiala

28

MILK PLANTPATIALA

BOARD OF DIRECTOR

CHARIMAN

GENERAL MANGER

M (PRO C) DM

M (PROD)

M (QC)

M (MKTG)

M (HRD)

M (A/C)

DM

DM

DM

SR ASST

DM

SUP

OPERATION

JDC

F.S.R

JS ASST

ACCOUN TANT

DM

HELPERS

LAB ASST

S.R

CLEA RK

CLERK

M (ENGG)

DM (PUR)

DM (STORE)

DM (MIS)

INC. SEC.

DM

ASSTT

S.K

SR. ASSTT

SEC. MEN

FORGEN

CLERK

ASK

CLERK
29

MECHANICS
Abbreviations used:DM ASSTT SUP INC. SEC Deputy Manager Assistant Supervisor In charge Security S.R" JDC Sale Representative Junior Dairy Chemist S.K Store Keeper F.S.R Sales Representative

30

CHAPTER IV
FUNCTIONS & HIERARCHY OF MARKETING SECTION

31

MARKETING SECTION
Market is of two types : Urban Market

Rural Market

In Verka Milk Plant urban market is done by a separate Marketing Department that is headed by Incharge Marketing under the overall guidance of Managing Director. He is assisted by Sales Supervisors, Milk Bar Manager, Milk Bar Assistant and Dairy Helper-cum-Cleaners. The Marketing starts with the product planning and ends with consumer's satisfaction. For this purpose, the Sales Supervisor regularly visit the market to study market needs & supervise the sale under the different market conditions. MARKETING SYSTEM a) City Supply: - Market milk supply was started with effect from 13th April,

1986. The Plant is supplying pasteurized & standardized milk packed in half litre poly packs through a market network of 674 agencies, 11 Milk Bars, given on lease & 4 Plant owned Bars in Patiala & in satellite towns like Rajpura, Sirhind, Bassi etc.The supply of milk has also been started in the markets of Uttrakhand & Haryana.The initiative taken by the plant, bore the fruit & the plant started
32

generating instant cash. Milk is also supplied to Mother Dairy on Custom Packing basis. b) Sweetened Flavored Milk: - The plant introduced this milk during 1988. It

has increased its production/marketing which improved the profitability. Plant has started the sale of this flavored milk not only within the state but also in metro cities like Delhi and neighboring states of Haryana & H.P. Keeping in view the demand; the Plant introduced the carry away bottles for sweetened milk in 2004. Today with the addition of this packing size in its fleet f the products, Plant is selling a record production of its unit.

c)

Paneer & Curd: - To augment the financial position of the Plant & with a

view to diversity in the field of production, the Plant has already introduced Production/Marketing of Paneer (Cheese) within Patiala as well as in Haryana. The sale of these two products is picking up day by day the Plant in order to match the competition due to which the curd is now made of Double Toned Milk which earlier was made of Toned Milk. This as a result, raised the sale.
33

d)

Cheese Plant: - A Cheese Plant with a capacity of 30 MTs per month has

been set up recently with a cost of Rs. 1.46 Crores which has started functioning after obtaining a certificate from BEREAU of INDIAN STANDARS (BIS). The maiden consignment of Processed Cheese in 400 gm Tins has been flagged off on 26th May 1998 by the then Managing Director, S. Amrik Singh, MILKFED PUNJAB, Chandigarh, to the Ministry of Defense. Thereafter, the supply of Processed Cheese is regular to the Defense Forces & Civil Market all over the India

34

URBAN MARKET

1)

Incharge Marketing :To manage and organise all marketing functions, like sales of product, organise the city

supply, advertisement, to check the functioning of all workers deputed in field and Milk Bars. 2) Sales Supervisor :To sell the milk products to local dealers as well as outside dealers. To ensure the payments from Govt. institutions, they also check the milk bars and field requirements.

35

3)

Salesman/Milk Bar Manager :To sell the product through Milk Bars, which are under the jurisdiction of Milk Plant,

Patiala. 4) Milk Bar Assistants :To assist the Milk Bar Manager at Milk Bars. 5) Dairy Helper-cum Cleaner :In Verka Milk Plant they work as salesman, they have been given the targets to sales, say 1000 products they sell the products market according to demand and received cash, deposit to account department

RURAL MARKET
But in case of Rural Marketing, products are sold through societies. There is no any separate department for this purpose and the Rural Marketing is secondary function of milk procurement department which is headed by Manager Milk Procurement and works under the overall guidance of Managing Director. He is assisted by Deputy Manager Procurement, Vety Officer, Milk Procurement Supervisors and Milk Procurement Assistants.

36

RURAL MARKET

1.

The Manager of Procurement :He gives instructions & directions to Deputy Managers, Supervisors & Assistants, helps

in day to-day problems, Management of Chilling Centres, hold the meetings and maintain contact with people to persuade them for buying milk products from this plant.

37

2.

Deputy Managers :There are two Deputy Managers. They encourage their subordinates to do work

accurately, check the rates of milk, check exact quantity of milk, solve the problems of procurement, supervise the work of subordinates. 3. Milk Procurement Supervisors :He checks the milk rates, fats, solve the problems of Procurement Assistants, supervise the work, make proper raw material arrangements for without any interruption in production of milk products. 4. Milk Procurement Assistants :They follow the directions given by Manager, supervise the work for milk procurement, give orders to societies, full control on village societies, check the qualtity of milk, maintain contracts with societies, solve early society problems.

38

CHAPTER V INTRODUCTION OF VERKA PRODUCTS

39

VERKA PRODUCTS
MILKFED is serving nation wide consumers through its net work of Regional Offices and strong Distribution Channels. MILKFED markets a wide variety of products. 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) Liquid Milk Milk Powder Ghee Butter Cheese Lassi SFM Ice Cream Paneer Curd/Dahi Raseela Verka Balanced Cattle Feed. The annual turnover of MILK FED has crossed Rs. 700 crores. Now Verka has arrived on the sheer strength of its quality, freshness and purity and of course its home made taste and its products being of most affordable prices. To people today, Verka is part of their daily life. 1. Liquid MilklPasteurized Pouch Packed Milk :It is pouch packed milk. It may be used as such or for milk based preparations. It shall be kept under refrigerated conditions. It is packed in half ltr. Pouch. It's length of shelf life is 48
40

hours under refrigerated conditions. It is sold in arid around Patiala and neighbouring areas. Special distribution control is needed, under refrigerated condition if transported to very long distance. Verka Milk Plant is preparing three types of milk pouch :Standardized Milk Toned Milk Double Toned Milk 4.5 min. 3.0 min. 1.5 min. 8.5 min. 8.5 min. 9.0 min.

Standardized Milk 2. Milk Powder :-

Toned Milk

Double Toned Milk

Dried Milk or Milk Powder is product obtained by the removal of water from milk by heat or other suitable means to produce a solid containing 5% or less moisture. Whole milk, defatted or skim" milk may be used for drying. It comes in packing of 200 gms, 500 gms. etc. It can be stored for 1 year before use. 3. Ghee :Ghee may be defined as clarified butter fat prepared chiefly from cow or buffalo milk. The product can be used on roti/pranthas or can be used as cooking other material for food. It is

41

preserved at ambient temperature for one year. It is packed on 500 gms., 2 Kgs., 5 Kgs. & 15 Kgs. bulk pack in tin. It is sold anywhere in Punjab. No special distribution control is needed. 4. Butter :Butter may be defined as a fat concentrate which is obtaining by churning cream, gathering the fat into a compact mass and then working it. The product obtained from cow and buffalo milk or a combination thereof or from cream or curd obtained from cow or buffalo milk or a combinatio.n thereof, with or without the addition of common salt and colouring matter. It can be kept under refrigeration for three months. This comes in packs of 10 gms., 100 gms. And 500 gms. 5. Cheese :Verka Cheese is mainly of four types: Cheddar Cheese. Processed Cheese. Pizza Cheese. Cheese Spread.

Cheedar Cheese :Cheedar Cheese is raw cheese. It is used as raw material of processed cheese and one of the base material for other cheese namely Pizza Cheese and Cheese Spread. It shall be kept at cold storing. The product is packed in poly pack. The product can be held for one year also if kept below 5*C.

42

Processed Cheese :It is commonly called processed cheese. The product can be consumed as such or can be used in bakery products. It shall be kept at cold storing. The product is packed in 400 gms tin/200 gms tin and 1 Kg. container. The packed product can be hold for one year, if kept below 5* C. It is sold in India and can be exported also.

Pizza Cheese :It is commonly called Pizza Cheese. Product can be consumed as such or for making Pizza. It shall be kept under refrigeration for six months. It is packed in 200 gms. poly packed container. Poly bag labeled best before upto two months under refrigeration from the date of manufacture.

Cheese Spread :Product is consumed on spreading over bread, roti, paranthas. It shall be preserved under refrigeration. The product is packed in 200 gms cup. Product can be held for six months from the date of manufacturing if stored below 5* C.

43

6.

Lassi :Lassi, also called chhas refers to desi butter milk which is by product obtained when

churning curd led whole milk with curd indigeneous devices for the production of desi butter.

Verka Lassi is very popular, specially in Punjab and it is also liked by the people of other states. It comes in the 200 ml. tetrapack. 7. SFM:It is known as Sweetened flavoured milk or bottle milk. The product used in the form of drinking sweet milk. It is preserved at ambient temperature. It is packed in 200 ml. bottle, 200 ml. tetrapak. The length of shelf life of product can be held far three months under ambient temperature. It is sold in and around Punjab and upcountry market mainly Delhi.

44

8.

Ice Cream :Ice Cream may be defined as a frozen dairy product made suitable blending and

processing of cream and other milk products, together with sugar and flavour, with or without colour and with the incorporation of air during the freezing process. There are mainly three types of Verka Kulfies i.e. Malai Kulfi, Choco bar and Mango bar. Malai Kulfi made with milk, malai and crushed nuts. Choco bar contained chocolate and Mango bar kulfi contain mango flavour. 9. Paneer :Paneer refers to the small sized soft cheese. The product can be consumed as such or can be fried and consumed. It can also be used as an ingredient for making Indian Sweets and paneer based dishes. It is preserved under refrigerated condition for 20 days from the date of packing. The product is packed in poly film bags. The pack size is 200 gms. For consumer pack and 5 Kg. Capacity in bulk pack as agreed by contracted buyer.

10.

Curd/Dahi:-

45

Dahi or curd is the product obtained from boiled milk by souring, natural or otherwise, by a harmless lactic acid or other bacterial culture. It should have the same percentage of fat and solids - not - fat as the milk for which it is prepared.

11.

Raseela:Raseela is a very popular product of Verka which was launched in 1995. It comes in two

flavours - i) Mango Raseela and ii) Pine apple Raseela. Mango Raseela is prepared from mango pulp and Pineapple Raseela from pineapple pulp. These are coming in 200 ml. tetrapak. 12. Verka Balanced Cattle Feed :MILKFED, Punjab has- two cattle feed plants having capacity to produce 300 M.T. of cattle feed & 5 M.T. of urea molasses lick brick per day. A high energy cattle feed and mineral mixture is also being produced by MILKFED plants to meet the requirement of dairy farmers.

46

CHAPTER VI CONSUMER BEHAVIOUR

47

CONSUMER BEHAVIOUR
Consumer behaviour also called as Consumer Psychology is a branch of applied Psychology, marketing and Organizational Behaviour. It examines consumer decision making process and ways in which they gather and analyze information from the environment. See the consumer behaviour article for an overview. Consumer behaviour is a multidisciplinary field which is integral to Psychology and aspects of household economy studied in microeconomics. The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how

The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products);

The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome;

How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.
48

Understanding these issues helps us adapt our strategies by taking the consumer into consideration. For example, by understanding that a number of different messages compete for our potential customers attention, we learn that to be effective, advertisements must usually be repeated extensively. We also learn that consumers will sometimes be persuaded more by logical arguments, but at other times will be persuaded more by emotional or symbolic appeals. By understanding the consumer, we will be able to make a more informed decision as to which strategy to employ.

One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points:

Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use).

Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result

49

from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest.

Consumer behavior involves services and ideas as well as tangible products. The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.

There are four main applications of consumer behavior:

The most obvious is for marketing strategyi.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers brand choices.

A second application is public policy. In the 1980s, Acutance, a near miracle cure for acne, was introduced. Unfortunately, Acutance resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their
50

female patients of this, a number still became pregnant while taking the drug. To get consumers attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers.

Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbone, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbone created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic.

As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.

There are several units in the market that can be analyzed. Our main thrust in this course is the consumer. However, we will also need to analyze our own firms strengths and

51

weaknesses and those of competing firms. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm that targets babies, a shrinking market, is likely to consider repositioning toward our market. To assess a competing firms potential threat, we need to examine its assets (e.g., technology, patents, market knowledge, awareness of its brands) against pressures it faces from the market. Finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, a recession may cut demand dramatically.

52

CHAPTER VII OBJECTIVES OF THE STUDY

53

OBJECTIVES OF STUDY

To study the functioning of Verka Milk Plant. To study the consumer satisfaction towards Verka Milk products. To find out knowledge regarding the marketing strategies of Verka Milk products. To get information about the awareness of Verka Milk products among consumers. To study the brand image and media promotion strategies.

54

CHAPTER VIII RESEARCH METHODOLOGY

55

RESEARCH METHODOLOGY
For achieving the objectives of study, survey was conducted. For survey, personal interviews of the consumers were undertaken. Personal interviews was selected as the mode of survey to make the study more meaningful & so that maximum information could be collected. For conducting the personal interviews of the consumers, a questionnaire was made. The questionnaire was structured with open ended & close ended questions.
USEFULNESS OF STUDY

The study can be useful to the company as they might come to know about the importance of brand image and marketing strategies in the Verka Milk Plant. The study can be of great importance to the company.
Sample Size:

I have covered 100 consumers, Patiala.

Types of Data:

I have used printing as well as secondary data. Some data is been taken from internet, some from MILKFED literature and some is gathered through questionnaire.

56

LIMITATIONS OF STUDY

1. The information provided by the workers is not definitely true. 2. The samples of consumers are not representative of the total workforce. 3. The consumers hesitate disclosing the true facts in order to secure their job. 4. There is no measure to check out whether the information provided by the consumers is correct or not. 5. The behaviour of the consumers is not co-operative while giving information, so it is very time consuming.

57

CHAPTER IX DATA ANALYSIS

58

ANALYSIS & INTERPRETATION

1. Kind/source of milk purchased? Packed Dairy Milkman 34 25 41

Milkman 41%

Packed 34%

Dairy 25%

Packed

Dairy

Milkman

Interpretation: According to 100 respondents 34% people says that they use to use packed milk, 25% says they use dairy milk and rest 41% says they use milk brought by milkman.

59

2. Which of the following would prefer?

Quality Quantity Taste Price Availability All

67 39 53 73 79 46

All 13% Availability 22%

Quality 19% Quantity 11%

Price 20%

Taste 15%

Quality

Quantity

Taste

Price

Availability

All

Interpretation: According to 100 respondents 19% says they prefer quality, 11% says they prefer Quantity, 15% says they prefer Taste, 20% says they prefer Price, 22% says they prefer Availability and rest 13% says they prefer All.

60

3. Are you aware about the operation Flood?

Yes No

79 21

No 21%

Yes 79%
Yes No

Interpretation: According to 100 respondents 79% says Yes they are aware of operation flood and rest 21% says No they are not aware of operation flood.

61

4. Are you aware of Verka milk brand?

Yes

83

No

17

No 17%

Yes 83% Yes No

Interpretation: According to 100 respondents 83% says Yes they aware of Verka milk Brand and rest 17% says that they are Not aware of the Verka milk brand.

62

5. Are you aware that Verka produces different kind of milk for different segment of consumer?

Yes No

47 53

Yes 47% No 53%

Yes

No

Interpretation: According to 100 respondents 47% says Yes they aware of Verka produces different kind of milk for different segment of consumer and rest 53% says that they are Not aware of the Verka produces different kind of milk for different segment of consumer.

63

6. Are you aware that skimmed milk is good for patient and health conscious people Contain 0.05% fats?

Yes No

39 61

Yes 39%

No 61%

Yes

No

Interpretation: According to 100 respondents 39% says Yes they aware of the skimmed milk is good for patient and health conscious people contain 0.05% fats and rest 61% says that they are Not aware of the skimmed milk is good for patient and health conscious people contain 0.05% fats.

64

7. Are you aware of the importance of the logo of operation flood on Verka milk Packs?

Yes No

33 67

Yes 33%

No 67%

Yes

No

Interpretation: According to 100 respondents 33% says Yes they aware of the importance of the logo of operation flood on Verka milk packs and rest 67% says that they are aware of the importance of the logo of operation flood on Verka milk packs

65

8. Are you aware that Verka milk is pasteurized?

Yes No

79 21

No 21%

Yes 79%
Yes No

Interpretation: According to 100 respondents 79% says Yes they aware that Verka milk is pasteurized and rest 21% says that they are not aware that Verka milk is pasteurized.

66

9. Are you aware of the shelf life of Verka milk?

Yes No

43 57

Yes 43%

No 57%

Yes

No

Interpretation: According to 100 respondents 43% says Yes they aware of the shelf life of Verka milk and rest 57% says that they are not aware of the shelf life of Verka milk.

67

10. Are you aware of the storage conditions for the Verka milk?

Yes No

41 59

Yes 41%

No 59%

Yes

No

Interpretation: According to 100 respondents 41% says Yes they are aware of the storage conditions for the Verka milk and rest 57% says that they are not aware of the storage conditions for the Verka milk.

68

11. Are you aware that Verka has consumer service also?

Yes

23

No

77

Yes 23%

No 77% Yes No

Interpretation: According to 100 respondents 23% says Yes they are aware that Verka has consumer service also and rest 77% says that they are not aware that Verka has consumer service also.

69

12. Why do you prefer Verka over other brand?

Price Taste Quantity Availability

41 57 43 51

Availability, 51

Price, 41

Quantity, 43

Taste, 57

Price

Taste

Quantity

Availability

Interpretation: According to 100 respondents, 41 responded that price is the reason to prefer against other brand, 57 prefer taste, 43 the quantity and 51 due to availability.

70

13. Are you aware that standard toned & double toned milk are the best to be used for household purposed?

Yes No

57 43

No 43%

Yes 57%

Yes

No

Interpretation: According to 100 respondents 57% says Yes they are aware that standard toned & double toned milk are the best to be used for household purposed and rest 43% says that they are not aware that standard toned & double toned milk are the best to be used for household purposed.

71

14. Are you aware that full cream milk is the best for growing children & sports person as it contain 6.0% of facts?

Yes

63

No

37

No 37%

Yes 63%

Yes

No

Interpretation: According to 100 respondents 63% says Yes they aware that full cream milk is the best for growing children & sports person as it contain 6.0% of facts and rest 37% says that they are not aware that full cream milk is the best for growing children & sports person as it contain 6.0% of facts.

72

15. Do you switch over to other brand?

Yes

32

No

68

Yes 32%

No 68% Yes No

Interpretation: According to 100 respondents 68% says Yes they want to switch over to other brand and rest 32% says that they do not want to switch over to other brand.

73

16. Why do you switch over? Price Taste Quantity Availability 28 23 19 17

Availability, 17

Price, 28

Quantity, 19 Taste, 23

Price

Taste

Quantity

Availability

74

17. Is Verka using any kind of media to media to media to promote its products & to make the consumer aware about its products?

Yes

79

No

21

No 21%

Yes 79%
Yes No

Interpretation: According to 100 respondents 79% says Yes Verka is using media to media to promote its products & to make the consumer aware about its products and rest 21% says No Verka is not using any kind of media to media to promote its products & to make the consumer aware about its products

75

CHAPTER X SUGGESTIONS AND RECOMMENDATIONS

76

SUGGESTIONS & RECOMMENDATIONS

Though the survey revealed that rural people like Verka's products to a great extent and there is more demand of Verka brand but then also some people want a change in its price, quality, quantity and some in availability. Therefore, to make its customers fully satisfied, some measures should be taken which will also add to its sales and improve its position in the rural market. So, there were some suggestions given by the people which are summed up as follows :a) Reduction in Price :Generally, people are not satisfied with the prices of 'Verka products'.they feel the products are bit expensive.Thus, to satisfy its customers, price should be reduced to some extent. b) Distribution System should be improved :People of rural area are not satisfied with the distribution system. So, distribution system should be improved in rural areas. c) Lack of Advertisement :Rural people have also complained about the advertisement of the brand Verka. It should be made popular through more and more advertisements and schemes so as to attract people of all age groups. More hoardings should be put in villages and with the help of word of mouth more awareness about products should be given. d) Availability :The products of Verka should be easily available in societies. There are some area where Verka products are not available easily in societies. Therefore, Verka should expand its market in
77

rural area, so that products are available easily. More variety of products should be send to the societies. e) Improve quality of cattle field :Some people also suggested that quality of feed which is supplied to societies should be improved so that good quality feed is given to stock . Apart from all the above, some rural people had nothing to suggest and they said that it needs no amendments.

78

CHAPTER XI CONCLUSION

79

CONCLUSION

Working at Verka Milk Plant, Patiala gave me an opportunity to apply my skills and knowledge, which I had gained previously. It gave me an opportunity to see working an organization and to be a part of it. Marketing Research Project on Rural Marketing gave me an opportunity to be exposed to the farmers who were the members of various Milk Producers Co-operative Societies and to know about them. It was an amazing experience with learning all the way, which helped me to brush up my knowledge and skills.

80

CHAPTER XII SWOT ANALYSIS

81

SWOT ANALYSIS
STRENGTHS :1. 2. 3. Brand Loyality among the rural people for Verka products. Good brand image of Verka products in the minds of rural people. Faith on Verka products by the rural farmers.

4.

Rural people satisfaction with quality, price, quantity and availability is also strengthen the dairy business.

WEAKNESSES :1. 2. 3. 4. Lack of proper advertisements by the plant, such as posters, glow signs, etc. Lack of proper distribution system in rural areas. Lack of proper marketing network in rural areas as like in urban areas. Very high rates of products such as bottle milk for Rs.1 a/for 200 ml.

OPPORTUNITIES :1. Greatly improved expert potential for milk products of western as well as traditional types. 2. 3. 4. Proper utilisation of available resources to decrease the per unit cost. By product utilisation for import substitution. Growing demand for milk and milk products.

82

THREATS:1. 2. 3. Introduction of foreign products in Indian market. Poor quality of milk. The liberalisation of Dairy Industry is likely to be exploited by multi -nationals. They will be interested in manufacturing milk products which yield high profits. It will create milk shortage in the country adversely affecting the consumers. 4. Export of quality feed under the liberalisation policy.

83

BIBLIOGRAPHY
BOOKS
KOTHARI CRS, RESEARCH METHODOLOGY Second Revised Edition Publishers-New Age International (P) Ltd

NEWSPAPERS
1. CHANDIGARH TRIBUNE 2. AJIT 3. THE INDIAN EXPRESS 4. DAINIK JAGRAN 5. AMAR UJALA

WEBSITES
1. 2. 3. 4.

www.milkfed.nic.in www.milffed.org www.indiaagronet.com/indiaagronet/Dairy.htm www.punjabgovt.govt.in/government/milkfed.htm

5. www.hindu.com/thehindu/2001/10/11/stories/0611000c.htm

84

ANNEXURE
CUSTOMER SATISFACTION & BRAND IMAGE OF PRODUCTS OF VERKA

1. Name: Add: Telephone No:

2. Kind/source of milk purchased? Packed Dairy Milkman

3. Which of the following would prefer? Quality Quantity Taste Price Availability All

4. Which packed milk do you use? ________________________________.

85

5. Which is the top of the mind milk brand for you ? ________________________________.

6. Are you aware about the operation Flood? Yes No

7. Are you aware of Verka milk brand? Yes No 8. Are you aware that Verka produces different kind of milk for different segment of consumer? Yes No 9. Are you aware that skimmed milk is good for patient and health conscious people Contain 0.05% fats? Yes No

10. Are you aware of the importance of the logo of operation flood on Verka milk Packs? Yes No

86

11. Are you aware that Verka milk is pasteurized? Yes No 12. Are you aware of the shelf life of Verka milk? Yes No 13. Are you aware of the storage conditions for the Verka milk? Yes No 14. Are you aware that Verka has consumer service also? Yes No 15. Why do you prefer Verka over other brand? Price Taste Quality Availability

16. Are you aware that standard toned & double toned milk are the best to be used for household purposed? Yes No
87

17. Are you aware that full cream milk is the best for growing children & sports person as it contain 6.0% of facts? Yes No

18. Do you switch over to other brand? Yes No

19. Why do you switch over? Price Taste Quantity Availability

20. Is Verka using any kind of media to media to media to promote its products & to make the consumer aware about its products? Yes No

88