Executive Summary: Belgaum Milk Union LTD

BELGAUM MILK UNION LTD.
EXECUTIVE SUMMARY
Page 1 KLS's Institute of Management Education and Research, Belgaum
BELGAUM MILK UNION LTD. EXECUTIVE SUMMARY

In this project my aim was to understand the concept of the milk diary and this study focused on the consumer preference towards Nandini milk & its Products in Belgaum city. For this study 100 consumers of Belgaum city were randomly chosen and their response has been collected through a systematic questionnaire. Again the responses collected are tabulated are analyzed to take up the decision and recommendations which will be helpful for the BEMUL, to improve service to its consumers. While carrying the survey many respondents have show negligence when they where answering, and few were very much excited answered the questions with their personal interest. Some of them reacted and started communicating their complaints and requirements.
This study is conducted for consumers, in Belgaum city. It gives more emphasis on the selected consumers for gathering the information about consumer preference towards Nandini Milk and its products.
The research aims to collect the information about the consumer preference. Findings inferred from the data enable and subsequent recommendation will help KMF to improve its marketing effectiveness
INDUSTRY PROFILE
DAIRY INDUSTRY IN INDIA

Dairy enterprise is an important occupation of farmer. In India nearly 70% of the people depend on agriculture. It is the backbone of India. Dairy is linked with agriculture industry to a large extent. Animal husbandry in India is an essential part. It is mainly a rural occupation closely associated with agriculture.
DEVELOMENT OF DAIRY INDUSTRY IN INDIA

During the Pre-independence year there was no serious stress given to dairy industry. In 1886 the Department of Defense of the British Government established the dairy farms for the supply of milk to the British troops in Alahabad. Later, in 1920 serious steps were taken by Mr. William Smith, an expert in dairy forming to improve the milk production There was discrimination done to the Indians hence this led to the rise of the first milk union in India. In Lucknow 1937 called the Lucknow milk producers Co-operative union Ltd. In 1946 AMUL (Anand Milk Udyog Ltd) was started in Gujarat to bring up the economic stability of villagers. When the farmer Prime Minister Lal Bahaddur Shastri visited the functioning as it was rendering a social service to the society, which helped the villagers to come in the national economic stream. The dairy and Animal Husbandry received serious attention after the independence. There was not many of progressive steps taken by the government through five year plans. This led to the formation of National Dairy Development Board in 1965 & thus in 1970 he decided to bring a White Revolution throughout the country, Initially 10 states were selected for this purpose excluding Karnataka. In Karnataka in 1974 an integrated project was launched to restructure and reorganize the dairy industry on Co-operative principle of AMUL and to lay foundation for new direction in dairy industry.
NATIONAL DARIY DEVELOMENT BOARD

History:
NDDB was founded to replace exploitation with empowerment, tradition with Modernity, Stagnation with growth, transforming dairy into and instrument for the development of Indians rural people. NDDB was established in 1965; the board is registered under the Societies Registration Act and the public Trust Act, fulfilling the desire of the Prime Minister of India the late Lal Bhahaddur Shastri to extend the success of the Kaira Co-operative Milk producers union (AMUL) TO OTHER PARTS OF India. Dr Vergese Kurien was the founder chairman. The success combined the wisdom & energy of farmers with professional management to successful capture liquid milk and milk product markets while supporting farmers investment with inputs and services.
The Growth
NDDB began its operations with the mission of making dairying a vehicle to a better future for millions of gross roots milk producers. The mission archived helped to launch Operation Flood, a program extending over 26 years and with the help of World Bank Loan India become the worlds largest milk producing country. As per March 2001 Indias 96000 Dairy Co-operative are integrated thorough a three Tier Co-operative structure. The Anand pattern which is owned by more than 10 million farmers procures an average of 1605 million liters of milk every day. The milk is processed and marketed by 170 milk producers co-operative unions which, in turn own 15 state co-operative milk marketing federation. Since its establishment the dairy development board has planned and spearheaded Indias Dairy programme by placing dairy development in the hands of milk producers and the professionals, they employ to manage their co-operatives. In addition, NDDB also promotes other commodity based co-operative, allied industries and veterinary biologically on an intensive and nationwide basis.
Objectives of NDDB

To sponsor, promote, manage, acquire, construct or control any plant or work, which promote projects of general public utility relation to dairying. To make information available on request to technical services to increase production of Milk. To prepare initial feasibility studies of dairying and other dairy related projects and undertake subsequent designing planning and start up those projects. To undertake research and development programme related to production and marketing of milk and milk products. To provide assistance for exchange of information to other international agencies.
Services rendered by NDDB

Planning dairy and rural development projects. Organization of farmer co-operative societies. Setting up of dairy and cattle feed plants. Manpower planning and training. Applied research and development. Implementation of milk production enhancement programme.
INTRODUCTION TO KARNATAKA MILK FEDERATION

KARNATAKA MILK FEDERATION
DISTRICT CO-OPERATIVE MILK UNION
VILLAGE LEVEL MILK CO-OPERATIVE SOCIETY
MILK PRODUCERS (MEMBERS)
The first dairy in Karnataka was started in Kudige in Kodagu district in 1955, Further in June 1974; an integrated project was launched in Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to lay foundation for a new direction in dairy development. In 1975, the World Bank aided dairy development was initiated. The present Karnataka Milk Federation (KMF) came into existence in 1984-as a result of merging of Karnataka Dairy Development Co-operation, small co-operatives and Karnataka Milk Production Development and loose vendors. At the end of the March 1998, the network of 8023 Diary Co-operative Societies (DCS) have been established which are spread over 166 taluks of the total 175 taluks in all 27 districts of Karnataka. There are 13 Milk Unions and BEMUL is one among them. There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants and 2 Product dairies for chilling, processing, conservation and marketing of milk. To supply cattle feed there are 4 cattle feed plants. To ensure supply of quality germ plasma, Bull breeding farm and frozen semen bank are also available. Karnataka co-operative Milk Producers Federation Limited (KMF) is the apex Body in Karnataka representing Dairy Cooperatives. It is the third largest dairy co-operative amongst the dairy co-operatives in the country. To impart training, institutes at Bangalore and regional training institutes at Dharwad and Gulbarga are functioning. Three nitrogen plants are been set-up to supply nitrogen, which is used for Refrigeration purpose. Three diagnostic centers have been set-up for monitoring diseases: three fodder farms at Rajkunte, Kuttanahalli and Kodagu

have been set-up to supply good quality of fodder and seed production farm at Shahpur has been set-up. The federation giving details of the latest technology in dairy industry etc is published in Ksheer Sagar magazine monthly. KMF is a co-operative apex body in the state of Karnataka for representing dairy organizations and also implementing dairy development activities to achieve the following objectives. Providing assured and remunerative market for all the milk produced by the farmer members. Providing hygienic milk to urban consumers. To build village level institutions in co-operative sector to manage the dairy activities. To ensure provision of milk production inputs, processing facilities. To facilitate rural development by providing opportunities for self-employment at village level, preventing migration to urban areas, etc.
The growth process

The growth over the years and activities undertaken by KMF is summarized briefly here under: Particulars Dairy Co-operatives (Nos) Membership (Nos) 1976-77 416 37000 2004-05 9670 1743664 12699785
Milk Procurement (Kgs/day) 50000
Milk Sales (Lts/day)
35050
1694116
FUNCTIONS OF KMF
Co-ordination of activities between the unions. Developing the markets for the increasing in milk production. To make the brand Nandini as a house hold name. Excellence in quality is to be maintained to lay a solid foundation for wide spread acceptance of Nandini products. To increase the market share of Nandini.
THE THREE- TIER STRUCTURE
KARNATAKA MILK FEDERATION
MILK UNION
MILK UNION
MILK UNION
DISTRICT CO-OPERATIVE SOCIETY
THE DISTRICT CO-OPERATIVE SOCIETY (DCS)

It is basic organization unit, functioning at the village level, by training local people to organize and manage the activities, village level institution building and development of local leadership is promoted.
FUNCTIONS
It functions daily and acts as a marketing outset for the milk produced in the village. Input facilities are also canalized to the dairy farmers through these societies and include Veterinary First Aid, Sale of Cattle Feed, Supply of Fodder Seeds, Seedling and Provisions of Mobile Veterinary Health Care etc. Payment for the milk is done through society.
THE MILK UNION

Milk union is a channel of District Co-Operative Societies in organized form for milk procurement. The procurement route is linked to chilling center or a dairy. Belgaum Milk Union is one of such Milk Unions. It is the middle tier of the complex co-operative organization network. Unions are formed by federating the societies in locating geographical area. The milk unions are organized to make them economically viable and the jurisdiction extends from one district to 3 Districts. There are 5 Milk Unions whos Jurisdiction covers a single district, 4 Unions COVER 2 District, each 3 Unions cover 3 districts and one Unions territory extends to 4 District. All Unions have their own Milk Processing Facilities.
FUNCTIONS
These Unions help to organize new Primary Dairy Co-operative Societies. The Union also helps in managing these DCS by assisting in accounts, purchase, process and marketing milk. The Union helps in providing all the input facilities to DCS and channelizes the dairy farmers through DCS. The Union provides the following facilities. Providing Balanced Cattle Feed. Providing Animal Health Care. Providing Artificial Insemination facility for breed improvement. Providing Training for breeding, feeding management.
MILK FEDERATION
The main objective of the federation is to help in formation of Milk Unions through the state. The Federation implements all the project activities. After the project activities are accomplished the federation aims at formulating Marketing strategies in marketing the Milk and Milk Product. The Karnataka Milk Federation which was setup in 1984 has the following functions: The foremost function of KMF was to co-ordinate the activities between the Union and also in making market available so that production increases. The Federation also manages surplus and deficiencies of milk among the milk union and help in disposing milk and milk product at reasonable price The Federation also manages to market the milk and milk products outside the state. Training and developing senior managerial personnel, acquiring and applying all recent technologies, prescribing quality guidelines and norms.
THE PRODUCTS OF KMF
Milk
Toned Milk, Full Cream Milk, Standardized Milk, Flavored Milk, Smart, Slim Butter Milk, Homogenized Toned Milk, Ghee, Badam Powder, Butter, Panner, Curd, Peda, Cheese and Khawa Kundha.
Milk Products
BELGAUM MILK UNION LTD. COMPANY PROFILE

KEY ELEMENTS OF BEMUL: Name of the Company Belgaum District Co-operative Milk Producers Societies Union Ltd. Belgaum.
Address of the Company
Belgaum Dist. Co-operative Milk Producers Societies Union Ltd. Belgaum Dairy premises Kanbargi Road. Belgaum- 590016. Tel Ph No:- 0831- 2455036, 2454107, 2453442.
Registration No
JRL/9072/DAY/1985-86. Date:- 24th December 1985.
Type of unit Organization set up Labors
Small Scale. Land-22acres Permanent: - 128 Contract :- 78 206
Belgaum District Cooperative Milk Producers Societies Union Limited, Belgaum 590 016.

INTRODUCTION OF BEMUL Government Dairy, Belgaum, was established in the year 1971 with milk handling capacity of 10,000 LPD under Govt. Milk Scheme. The BEMUL is union member of KMF and registered on 24thDec 1985. It is a co-operative organization. The integrated, dairy development activated in Karnataka started on sound footing with Govt. of Karnataka initiating dairy development project in 1974 with the World Bank Assistance. The AMUL Model CoOperative System was followed for Dairy Development activities in Karnataka. Initially Dairy Development was started in 8 districts of Southern Karnataka. Later in 1983 Integrated Dairy Development activities were started in Northern Districts of Karnataka from Oct 1984 under Operation Flood-II project of National Dairy Development Board which gave impetus for further development in Dairying. Belgaum Milk Union started functioning with effect from December 1985. Belgaum district is North Western border district of Karnataka, 512 km away from Bangalore and it is on the border of Maharashtra and Goa States. The district is formerly known as land of sugar later turned into land of sugar and milk. New dairy plant was established in the year 1995 with milk handling capacity of 60,000 LPD expandable to 1,00,000 LPD to serve consumers with pasteurized milk and products such as Ghee, Peda, Curd, Sweet milk, Masala Butter Milk and Belgaum special sweet Nandini Kunda. There are 314 primary dairy co-operative societies functioning which are affiliated to the union. In all around 15,280 milk producers families supplying milk to the union through Primary Milk Producers Co-Op Societies. Around 64,867 families are depending on Dairy activities for their livelihood of whom many are land less laborers and belongs to weaker section. The major objectives of the union shall be to carry out activities conducive to the economic and socioeconomic development of the milk producers by organizing effective promotion, processing and marketing of commodities.
PRINCIPLES OF THE BEMUL: Page 16 KLS's Institute of Management Education and Research, Belgaum

Honesty Discipline and Time Management Quality at all stages Mutual Co-Operation and Respect Transparency Hard Work and Sincerity
OBJECTIVES OF THE BEMUL: The main objective of BEMUL is to develop the members by procuring good
quality milk. To provide high quality milk to the continuous changing market and to increase the
position of Union in introducing milk and milk products. Honestly striving to become one of the best dairy in Karnataka State. To build village level institution in co-operative sector to manage daily activities. Providing hygienic milk to urban consumer. MEMEBERS OF WORKING BOARD ELECTEDED MEMBERS NOMINATED MEMBERS 11 03
PROCUCT PROFILE
KMF - milk and Milk Products. Page 17 KLS's Institute of Management Education and Research, Belgaum
Toned Milk: Karnatakas most favorite milk. Nadine

Toned Fresh and pure milk containing 3.0% FAT and 8.5% SNF, Available in 500ml and 1ltr packs.
Standard Milk:
Buffalos milk, 100% pure pasteurized processed and packed hygienically, this milk has 5% FAT and 9% SNF. Available in 500ml and 1ltr, and also Available in 5 ltr packs for marriages, and other functions.
Full Cream Milk:

Full cream milk, containing 6% FAT and 9% SNF. Rich, creamier tastier milk, ideal for preparing home-made sweet. Available in 500ml and 1ltrs packs.
Homogenized toned milk:

Nandini homogenized milk is pure milk. Which is homogenized and pasteurized, consistent right through, it gives you more cups of tea or coffee and is easily digestible. Available in 500ml packs.
Curd:
Nandini curd made from pure milk, its thick delicious Giving you all the goodness of homemade curds. Available in 200gms and 500gms sachet.
Milk powder:
Enjoy the taste of pure milk! Skimmed milk powder made form pure milk, processed and packed hygienically. Available in 100gms, 200mgs, 500gms, 1kg & 25kg Pack.
Butter:
Rich, smooth and delicious. Nandini butter is made out of fresh pasteurized cream, rich taste, smooth texture and the rich purity of cows milk makes any preparation a delicious treat. Available in 100gms(salted), 200gms and 500gms cartons both salted and unsalted
Peda :
No matter what you ate celebrating! Made from pure milk, Nandini peda is a delicious treat for the family. It will be store at room temperature approximately 7days. Available in 250gms pack containing 10pieces each.
Ghee:A state of purity, Nandini ghee made from pure

butter. It is fresh and pure with a delicious flavor, hygienically manufactured and packed in a special pack to retain the goodness of pure ghee. Shelf life of 6 months at ambient temperature. Available in 200ml, 500ml, 1000ml sachets, 51trs tins and 15kegs tins.
DEPARTMENTS OF BEMUL:Page 19 KLS's Institute of Management Education and Research, Belgaum

In BEMUL, there are various sections or Departments which constitutes the operation of union. The various departments are: Procurement and Input Production or Plant Department Engineering Department Marketing Department Administrative Department Finance or Accounts Department Stores and Purchase Department MIS Security Section.
PROCUREMENT AND INPUT DEPARTMENT:- (P&I)


P&I is an important Dept in the Organization. It deals with procurement of milk the procurement of milk and takes it as input for final production. Now a days due to increase in the population, the demands for milk and milk products has been increasing. So to meet this demand of market only procurement of milk through societies is not sufficient. So the Union has adopted various other sources of procurement life: Milk procured from societies 90%. Milk procured from other dairy 10%.
PROCUREMENT PROCESS:FARMERS DCS
BEMUL The farmers milk the cattle and take the milk to DCS i.e. Dairy Co-Operative Societies and then the milk is tested for FAT for both cow and buffalo. The milk collected at DCS centers are picked up by milk vans and taken to the main dairy. Then it is weighted there and FAT & SNF are again tested and then send for pasteurization. The money paid by main dairy to the societies based on the FAT and SNF content of milk. Calculation of SNF:SNF (Solid Not Fat) = CLR /4 + 0.25 * FAT + 0.35.
THE TABLE SHOWING TOTAL PROCUREMENT PER DAY:YEAR TOTAL PROCUREMENT(in liter) Page 21 KLS's Institute of Management Education and Research, Belgaum

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 44,954 47305 46,968 53,154 56,838 52,994 56,361
For more milk procurement and milk production, balanced cattle feed is essential. For that reason BEMUL is supplying balanced food i.e. Cattle feed and mineral mixture at reasonable prices in the village itself at their DCS. The price of the Mineral Mixture is Rs 30/for 1kg. Mineral Mixture Powder:-
Composition
Calcium Phosphorous Zink Copper
Percentage (%)
19.80 9.00 1.62 0.25
Functions of Procurement and Input: Opening of new dairy Co-Operative Societies. To procure good milk at dairy Co-Operative Societies.

To check the records maintained at dairy Societies. To attend complaints. To organize meetings at the dairy Co-Operative Society level.
PRODUCTION DEPARTMENT:Production is the conversion of raw material into finished products. In other words it is the conversion of input into output. At BEMUL, production department is well planned and adequately equipped manufacturing set up where all the necessary infrastructure is available.
Production Procedure:- The different stages of production are as follows: Collection of Milk:In the first stage, the milk is brought from the various DCS to the main dairy in a can containing 40 liters capacity in the vehicles. The cans are marked with two different colours to differentiate between the Cow and Buffalo milk. .The Red colour is used for Buffalo milk, and Green or Blue colour is used for Cow milk. Once the milk is brought to the main dairy, it undergoes into following processes: Organoleptic Test Smelling and Tasting Test Extraneous Matter COB i.e. Clot on Boiling.
Storage of Chilled Milk:Once all the tests are over, the milk is allowed to store in the Store Tank. It
contains cold level of 4 degree Celsius. The Union is having 7 storage tanks , 3 tanks are vertical with 30,000 liters capacity each and the remaining 4 are horizontal among which

are having the capacity of 10,000 liters each and other 2 of 15,000 liters capacity each. After chilling the milk, it is passed for pasteurization.
PASTEURIZATION:This step includes heating every particle of milk at 72 degree Celsius in 15
Seconds and is cooled in less than 4 degree Celsius.
PACKING:Once the pasteurization stage is conducted the next step is to pack the milk.
Packing is done by machines in case of fluid goods where as it is done manually in case of solid goods like Peda. STORAGE:- In the Storage, the milk is packed in 500ml and 1000ml pouches then they are arranged in the caters. Each cater contains 10 liters of milk. These are stored in the cold room which has a temperature of 4 degree Celsius or below.
Flow Chart of Production Department:
BELGAUM MILK UNION LTD. COLLECTION OF MILK (COW AND BUFFALO)
CHILLING OF RAW MILK
STORAGE OF CHILLED MILK
PASTEURIZATION
STANDARDIZATION
PACKING
STORAGE DISPATCH
PRODUCTION DEPARTMENT CHART:-

Manager Dairy
Deputy Manager
Assistant Manager
Technical Officer
Dairy Supervisor
Production
Quality Control
Operation
Chemist
Helpers
Helpers
ENGINEERING DEPARTMENT:-

Engineering dept is the heart of dairy production and other unit. Its major contribution is towards the production unit. Engineering dept at BEMUL consists of 20 workers based on shifts. DEPARTMENTS OF ENGINEERING: Electricity Department Boiler Section Air Compressor and Work shop Refrigeration Processing Plant ETP (Efflon Treatment Plant)
FUNCTIONS OF ENGINEERING DEPT To supply hot water to production dept and wash cans and utensils. To supply cold by ammonia treatment so as to maintain the 4 degree Celsius temperature of milk. Maintenance and repairs of motors. To supply electricity through D.G (Diesel Generator) sets in case of power failure.
MARKETING DEPARTMENT:Page 27 KLS's Institute of Management Education and Research, Belgaum

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Marketing Section in BEMUL is divided into three different internal sections: viz Office Work Marketing and Production Co-Ordination Field Work
Office Work:- The Office work deals with all daily transactions. They include
checking the daily indents, collecting the cash from salesman and depositing the same into the bank. Delegating the work to all assistants and helpers. They also arrange vehicles for distribution of milk on contract basis.
Marketing and Production Co-Ordination:- Marketing and Production are not

two different aspects. They are two faces of same coin. The indents collected by the agents which helps in production and packing of the products. They prepare chart of requirement for the next day and sent to the production department which helps in taking decisions for the production.
Field Work:- The Marketing Officers will go to the fields to study the market and then
they will plan for the strategy. They will plan about Marketing Mix i.e. Product, Price, Promotion and Place or Distribution. There are around 15 sales persons in the field work.
DISTRIBUTION PROCESS:People pouring Milk KLS's Institute of Management Education and Research, Belgaum Page 28
Dairy/ Societies
BEMUL
Agents
Dealers
Customers
Sales Promotion
Sales promotion consists of short-term incentives to encourage purchase or sales of products or service.
Promotion tools used by BEMUL

* Through the agent.
* Home delivery. * Cycle to agent. * T-shirts. * Home delivery Bags. * Plan for lucky draw. * Samples. The budget is allocated by the KMF & NDDB (National Dairy Development Board) 3 to 4 Lakhs per year. This allotted fund is utilized for sales promotion campaign.
MILK DISTRIBUTION ROUTES OF BEMUL:-
DISTRICT
BELGAUM I BELGAUM II BELGAUM III BELGAUM IV BELGAUM V SULEBHAVI AUTO (M1) AUTO (M2) AUTO (M3) PARLOUR EVE.SALES EVE.SALES II MIL.DAIRY ADHOK SALES 216
ROUTES TALUKA
GOKAK BAILHONGAL T S HALLI RAMNAGAR RAIBAG CASTLE ROCK ITAGI MPCS BAILUR ROUTE
OUTSIDER
SAWANTWADI GOA I GOA IA GOA KUNDAIM GOA II GOA III GOA IV GOA NAVY
TOTAL DISTRIBUTORS
110 100
BELGAUM MILK UNION LIMITED

Sl.No PARTICULARS MILK 1 Tonned milk /Ltr 2 Standardised milk /Ltr 3 Full cream milk /Ltr PRODUCTS 1 Ghee 200ml BELGAUM Dealers Margin M.R.P 16.25 17.15 21.00 0.75 0.85 1.00 17.00 18.00 22.00 Dealers 17.50 19.65 22.65 GOA Margin 1.50 1.35 1.35 M.R.P 19.00 21.00 24.00
218.18
21.82
240.00
186.36
18.64
205.00 Page 30
KLS's Institute of Management Education and Research, Belgaum

2 Ghee 200 ml per 3 4 5 6 7 8 9 10 11 sachet Ghee 500 ml Ghee 500 ml per sachet Peda 100Grams Peda 250 Grams Peda /kg Curds 200 ml Curds 500 ml Flavoured milk 200 ml Sterilised Flavoured 43.64 212.72 106.36 13.50 30.50 122.00 4.40 9.25 4.00 10.76 10.20 3.40 4.00 31.00 124.00 225.25 37.97 189.85 29.45 147.23 190.00 4.36 21.28 10.64 1.50 2.50 10.00 0.60 0.75 1.00 1.24 1.80 0.60 1.00 4.00 16.00 24.75 4.03 20.15 4.05 20.27 5.00 48.00 234.00 117.50 15.00 33.00 132.00 5.00 10.00 5.00 12.00 12.00 4.00 5.00 35.00 140.00 250.00 42.00 210.00 33.50 167.50 195.00 3.40 4.00 34.00 136.00 225.25 37.97 189.85 29.45 147.23 190.00 0.60 2.00 6.00 24.00 24.75 4.03 20.15 4.05 20.27 5.00 4.00 6.00 40.00 160.00 250.00 42.00 210.00 33.50 167.50 195.00 37.27 180.90 90.45 13.50 30.50 122.00 4.00 4.00 10.76 3.73 18.10 9.05 1.50 2.50 10.00 2.00 1.00 1.24 41.00 199.00 99.50 15.00 33.00 132.00 6.00 5.00 12.00
milk 12 Tetra pack Flovored milk 13 Masala Butter milk 15 16 17 18 200 ml Sweet Lassi 200 ml Kunda 250 Grams Tin Kunda /kg Badam powder sachet
10 Gm 19 Badam powder 200Gr /Tin 20 Badam powder 200 Grams 21 Jamoon mix 200 Grams 22 Jamoon mix / kg 23 Ghee 15 kg Tin (per kg Rs.)
Market Segment:- There are 3 verities of milk in BEMUL. viz

Toned Milk 2) Standardized Milk 3) Full Cream Milk
TYPE OF MILK
Toned Milk
FAT (%)
3
SNF (%)
8.5

Standardized Milk Full Cream Milk 4.5 6 8.5 9
Composition of milk
Milk may be defined as the whole, fresh, clean, lacteal secretion obtained by the complete milking of one or more healthy milch animals, excluding that obtained within 15 days before or 5 days after calving or such periods as may be necessary to render the milk practically percentages colostrums-free of milk fat. and containing the minimum prescribed
CHEMICAL COMPOSITION OF MILK:Sl. No 1 2 Species Cow Buffaloe Water 86.6 84.2 FAT 4.6 6.6 Protein 3.4 3.9 Lactose 4.9 5.2 Ash 0.7 0.8 Page 32 KLS's Institute of Management Education and Research, Belgaum
MILK PRODUCTS
SWOT ANALYSIS Strengths

Nandini enjoys good image. Wide distribution network leads to regular and timely supply. Milk processed is local milk, which reduces the transportation cost. It enjoys highest market shares in the packed milk segment.
Weaknesses
Poor retail serving and consumer grievance handling. Recurring quality problem. Lowest paying brand i.e. commission given by the company is less compared to other brands. Inadequate sales promotional activity. Due to bad smell that persists causes low sales. Page 34 KLS's Institute of Management Education and Research, Belgaum
Opportunities
There is scope for developing in new area. Availability of buffalo milk-improves market milk quality. Predominant of loose milk segment-divide appropriate strategies.
Threats
No entry barriers for private players. Low level of consumer awareness. Persuade benefits of competing brand.
ADMINISTRATION DEPARTMENT:It is main dept in the BEMUL. There are totally 3 employees are working in the dept. One of them is a Supervisor and the other two are helpers or subordinates. This dept is act as a HRD and take care that whether all the employees are satisfied with present work or not.
Functions of Administration Department:1. It will recruit the candidates and select the suitable candidate for the job. 2. It will conduct the training to the new employees as well as to the existing employees. 3. To maintain shifts timing. Etc... The whole Administration dept has one sub dept by name MIS i.e. Management Information System. The BEMUL seems in 3 shifts daily which includes general shift also. The timings of these shifts are shown below:

I Shift II Shift III Shift General Shift 6-00 A.M. To 2-00 P.M. 2-00 P.M. To 10-00 P.M. 10-00 P.M. To 6-00 A.M. 9-30 A.M To 5-00 P.M.
WELFARE FACILITIES:I. Statutory Facilities

a. b. c. d. Leave facilities: Casual Leave Sick Leave Earned Leave 15 days 10 days 30 days canteen facilities payment to provident fund contribution Provision of toilets, Restroom sittings.
e. Uniforms are provided. f. Provision of wash basins. g. Medical benefits
Non Statutory Facilities.

a. Factory arranges cultural programs at the time of Ganesh chaturthi, workers day and deepavali. Page 36 KLS's Institute of Management Education and Research, Belgaum

b. Factory often conducts demonstration through social workers in respect of family planning, AIDS awareness, etc. Financial Scheme:a. Employee gratuity scheme. b. Employees group savings linked insurance scheme. c. Employees death cum gratuity scheme. d. Employees provided fund and pension scheme.
FINANCE DEPARTMENT The main activity of the finance department is to keep all the account of the financial transactions. It is responsible for maintaining up to date account. The various activities are collected to different sections. THE STRUCTURE OF FINANCE DEPARTMENT: DEPUTY MANAGER FINANCE
ASSISTANT MANAGER ACCOUNT ASSISTANT HELPERS
MIS DEPARTMENT:-

MIS is a Management Information System. MIS is a Computer based information system. MIS at BEMUL is divided into two types. Viz.
Daily Information Report:- The information is recorded daily regarding

the depts., like Procurement, Water Consumption, Ice Consumption etc..
Monthly Report:- Monthly records are available here like monthly stock
report, monthly progress report on milk procurement, monthly sales etc..
FUNCTIONS OF MIS: To maintain daily reports To maintain information regarding input and output Maintains town wise sales report Reports regarding procurement and input Maintaining accounts of daily purchase of ice and water.
QUALITY CONTROL DEPARTMENT
The Quality Control department has the following structure
Deputy Manager
Assistant manager Assistant manager Quality Assistant Officer (Chemicals) Quality Assistant Officer (Chemicals)
Quality Analyst Page 38 KLS's Institute of Management Education and Research, Belgaum
Lab Assistant
Quality Assistant
At every stage, care is taken to ensure that the customer gets the products, which have a very high quality. Hence there is a separate department called Quality Department. Where the quality testing is done. There is a separate laboratory for this. Quality control is very essential as to maintain the freshness of the milk. All the containers, pipes and other equipments are washed with hot water before starting off with new production. There are many tests conducted here. The packed milk we get will have undergone 3 quality tests. First test is done on raw milk, which we get from chilling center. Next before standardization and the last test before packing. The other tests conducted are:
TEST
Temperature Clot on Boiling Acidity Test Alcohol Test Lactometer Fat test SNF Test
REASON
Should be below 5 degrees If mill curdles soon after billing milk is rejected To test the extent of acidity To check the heat stability of milk To check the density of milk Percentage of fat determined Percentage of SNF determined for pricing SNF=CLR+FAT/4
ORGANIZATION CHART
President Director Elected (8) Director (Ex-Officer-5) Directors (Nominated 3)
Managing Director
P&I
Production
Finance
Admn
security Dy. Mang Jn. Suprv
Mktg
Dy. Mang Dy. Mang Extension Officer Helper Q.C. officer Asst Asst.
Dy. Mang A/cs
Dy. Mang assistant
Dy. Mang Asst.
Helper Asst.
INTRODUCTION TO PROJECT WORK
INTRODUCTION TO PROJECT WORK:
A survey was conducted by me regarding CONSUMER PREFERENCE TOWARDS NANDINI MILK & ITS PRODUCTS. Before introducing any product in the markets, its inevitable to the organization to know the customer habits, taste, & their

needs, so that company can produce. & distribute the products & services to satisfy the targeted customers.
TITLE OF THE PROJECT:
CONSUMER PREFERENCE TOWARDS NANDINI MILK & ITS PRODUCTS
sub -Objectives:
To study the expectations of consumers from KMF products. To identify the market leader of milk brand in the study area. To know the satisfaction level of consumers with respect to Nandini Milk. To know the factors influencing the consumers to purchase Nandini Milk. To study the various competitors of Nandini Milk.
RESEARCH METHODOLOGY
STATEMENT OF THE PROBLEM: The present study undertaken is entitled as consumer preference towards Nandini milk and its productsin Belgaum city. Page 42 KLS's Institute of Management Education and Research, Belgaum

The preparation of the report included extensive study of the organization and market research, which was primary source of the report. a. A study on consumer preference towards nandini milk & its products in Belgaum city. b. Initial questionnaire preparation. c. Framing the objectives. d. Preparing the questionnaire based on objectives. e. Analyzing the data. f. Giving conclusions and recommendations based on findings. I have collected information from consumers of the nandini milk and other milk by preparing questionnaire and also collected the data from secondary sources such as company brochures, books & websites. Data Collection Methods: Primary Data: Primary data is collected directly from respondents through interview method using structured questionnaire. Systematic collection of information is done directly from consumers at random basis. Primary data is nothing but it is the data collected for the first time. Secondary Data: Secondary data sources are the annual reports of the organization as well as monthly report of the organization and also from the website www.kmf.com, www.indianmilkdairy.com and harbinger of kmf, on line information
Sample Plan As the project work is dependent on the study of the consumer preference.
Sampling unit Sampling method Sample size
: : :
Individual consumers Convenient sampling 100 consumers Page 43
KLS's Institute of Management Education and Research, Belgaum

Sampling instruments : Questionnaire and personal interview
Sampling area : Belgaum city with areas [Bhagya nagar, Hindwadi ,Adarsha Nagar, Mahantesh nagar, 1st Gate, And 2nd gate ].
DATA MESEARMENT TECHNIQUE
Questionnaire: - questionnaire consists of question for end users and for consumers, which are of the following types:(a) Multiple choice questions (b) Both open ended and questionnaire for writing down the study on consumer preference towards Nandini Milk and its products.
LIMITATIONS OF THE STUDY:

As the time is given only 60 days to conduct the study. It is not possible to survey more number of respondents so; it is restricted to 100 consumers only. The study was restricted to certain areas of Belgaum. [Viz. Bhagya nagar, Hindwadi ,Adarsha Nagar, Mahantesh nagar, 1st Gate, And 2nd gate ].

Even after assuring the respondents that the data will not be made publics and will be used for the study only still the respondents hesitated to reveal certain information such as their sales of other milk per month. Many of the respondents were too impatient to complete the questionnaire.
Data analysis and interpretation

.
ANALYSIS AND INTERPRETATION TABLE NUMBER 1

Are you aware of Nandini milk? Frequency 100 Percent 100.0 Valid Percent 100.0 Cumulative Percent 100.0
Valid
Yes
Are you aware of Nandini milk?
Yes 100.0%
INTERPRETATION: Out of `100 respondents all of them are aware of nandini milk.
TABLE NUMBER 2
Which type of milk are you using? Frequency 34 52 14 100 Percent 34.0 52.0 14.0 100.0 Valid Percent 34.0 52.0 14.0 100.0 Cumulative Percent 34.0 86.0 100.0
Valid
Branded Unbranded Combination of Both Total
Which type of milk are you using?

Combination of Both 14.0% Branded 34.0%
Unbranded 52.0%
INTERPRETATION: Majority of the consumers in the Belgaum city are consuming Unbranded milk. The remaining market share is captured by branded milk.
TABLE NUMBER 3
Which milk product you are using presently? Frequency 26 6 11 51 6 100 Percent 26.0 6.0 11.0 51.0 6.0 100.0 Valid Percent 26.0 6.0 11.0 51.0 6.0 100.0 Cumulative Percent 26.0 32.0 43.0 94.0 100.0
Valid
Nandini Arokya Aditya Unbranded Others Total
Which milk product you are using presently?

Others(Gokul,Warana) 6.0% Nandini 26.0%
Arokya Unbranded 51.0% Aditya 11.0% 6.0%
INTERPRETATION: Apart from the Unbranded milk, the consumption of Nandini milk is high among the branded milk.
TABLE NUMBER 4
How do you buy Milk products? Frequency 10 22 68 100 Percent 10.0 22.0 68.0 100.0 Valid Percent 10.0 22.0 68.0 100.0 Cumulative Percent 10.0 32.0 100.0
Valid
Grocery shop Milk parlor Home delivery Total
How do you buy Milk Products?

From Grocery shop 10.0%
From Milk parlor 22.0%
By Home delivery 68.0%
INTERPRETATION: Most of the consumers prefer home delivery for the consumption of milk as it is convenient. \
TABLE NUMBER 5
How much quantity of milk you are purchasing daily? Frequency 250 ml 4 500 ml 26 1000 ml 58 Above 1000 ml 12 Total 100 Percent 4.0 26.0 58.0 12.0 100.0 Valid Percent 4.0 26.0 58.0 12.0 100.0 Cumulative Percent 4.0 30.0 88.0 100.0
Valid
How much quantity of milk you are purchasing daily?

Above 1000 ml 12.0% 250 ml 4.0% 500 ml 26.0%
1000 ml 58.0%
INTERPRETATION: Due to the size of the family most of the respondents daily consumption of milk is 1000ml.
TABLE NUMBER 6
What factors you consider while purchasing milk among the following? Frequency 18 20 15 16 15 16 100 Percent 18.0 20.0 15.0 16.0 15.0 16.0 100.0 Valid Percent 18.0 20.0 15.0 16.0 15.0 16.0 100.0 Cumulative Percent 18.0 38.0 53.0 69.0 84.0 100.0
Valid
Price Service Freshness Creaminess Thickness Credit Total
What factors you consider while purchasing milk among the following?
Credit
Price
Thickness Service
Creaminess Freshness
INTERPRETATION: Price and Service are the the major factors which contribute to the sale of milk. Consumers expect good service like home delivery as well as low price.
TABLE NUMBER 7
How do you know about Nandini products? Frequency 24 6 53 17 100 Percent 24.0 6.0 53.0 17.0 100.0 Valid Percent 24.0 6.0 53.0 17.0 100.0 Cumulative Percent 24.0 30.0 83.0 100.0
Valid
Television Friends Wall painting Others Total
How do you know about Nandini products?

Others(Pamplets,Hoardings) 17.0% Television 24.0%
Friends 6.0%
Wall painting 53.0%
INTERPRETATION: Nandini milk has used wall painting as effective tool of advertisement to attract the consumers. Wall painting has a major impact on the consumers to create the awareness of the product.
TABLE NUMBER 8
Indicate your opinion about Nandini milk with respect to the mentioned attributes?
Price Frequency 18 7 1 26 Percent 69.2 26.9 3.8 100.0 Valid Percent 69.2 26.9 3.8 100.0 Cumulative Percent 69.2 96.2 100.0
Valid
High Moderate Low Total
Price
Low 3.8% Moderate 26.9%
High 69.2%
INTERPRETATION: The existing consumers of Nandini milk feel that the price of Nandini milk is high.
TABLE NUMBER 9
Q uality Frequency 20 4 2 26 Percent 76.9 15.4 7.7 100.0 Valid Percent 76.9 15.4 7.7 100.0 Cumulative Percent 76.9 92.3 100.0
Valid
Quality
Low Quality 7.7% Moderate Quality 15.4%
High Quality 76.9%
INTERPRETATION: The consumers of Nandini milk are highly satisfied with the quality of milk.
TABLE NUMBER 10
Taste Frequency 19 5 2 26 Percent 73.1 19.2 7.7 100.0 Valid Percent 73.1 19.2 7.7 100.0 Cumulative Percent 73.1 92.3 100.0
Valid
Good Better Avg Total
Taste
Average taste 7.7% Better taste 19.2%
Good taste 73.1%
INTERPRETATION: The consumers of Nandini milk are highly satisfied with the taste of milk.They say that taste of Nandini milk is good.
TABLE NUMBER 11
Thickness Frequency 8 7 11 26 Percent 30.8 26.9 42.3 100.0 Valid Percent 30.8 26.9 42.3 100.0 Cumulative Percent 30.8 57.7 100.0
Valid
Thickness
Low 42.3%
High 30.8%
Moderate 26.9%
INTERPRETATION: Most of the consumers of nandini milk are unsatisfied with the thickness of the milk which is low compared to other brands.
TABLE NUMBER 12
Packaging Frequency Convenient 18 Attractive 7 Not Attractive 1 Total 26 Percent 69.2 26.9 3.8 100.0 Valid Percent 69.2 26.9 3.8 100.0 Cumulative Percent 69.2 96.2 100.0
Valid
Packaging
Not Attractive 3.8% Attractive 26.9%
Convenient 69.2%
INTERPRETATION: The quality of packaging of Nandini milk is good. The datails provided on the packet add value to the product.
TABLE NUMBER 13
Brand image Frequency 17 8 1 26 Percent 65.4 30.8 3.8 100.0 Valid Percent 65.4 30.8 3.8 100.0 Cumulative Percent 65.4 96.2 100.0
Valid
Brand image
Low 3.8% Moderate 30.8%
High 65.4%
INTERPRETATION: Nandini milk has created good brand image into the minds of consumers.
TABLE NUMBER 14
Why you are not consumer of Nandini milk? Frequency 13 14 10 21 16 74 Percent 17.6 18.9 13.5 28.4 21.6 100.0 Valid Percent 17.6 18.9 13.5 28.4 21.6 100.0 Cumulative Percent 17.6 36.5 50.0 78.4 100.0
Valid
Price Service Freshness Creaminess Any other Total
Why you are not consumer of Nandini milk?

Price 17.6%
Any other (No Butter, Milk smells) 21.6%
Service 18.9% Creaminess 28.4% Freshness 13.5%
INTERPRETATION: Lack of creaminess is the main reason due to which consumers are not preferring Nandini milk compared to other milk.
FINDINGS
FINDINGS
From the survey I have found out the following results: Consumers have brand preference for Nandini milk.
Among the branded milk, Nandini milk is dominating. It has captured majority of the market segment. The consumers prefer Nandini milk compared to other brand milk.

Price and Service are the major factors which contribute to the sale of milk. Consumers expect good service like home delivery as well as low price.
The consumers of Nandini milk are highly satisfied with the quality of milk. The consumers of Nandini milk are highly satisfied with the taste of milk. They say that taste of Nandini milk is good.
The quality of packaging of Nandini milk is good. The details provided on the packet add value to the product.
Nandini milk has created good brand image into the minds of consumers.
Most of the consumers of Nandini milk are unsatisfied with the thickness of the milk which is low compared to other brands.
Lack of creaminess is the main reason due to which consumers are not preferring Nandini milk compared to other milk.
The major competitors of Nandini milk in the market are Adiya milk, Arokya milk, Gokul milk, Warana milk etc along with lose milk sellers
II ) When general question were asked

The main reasons for purchasing loose milk are door delivery, thickness, low price, creaminess and they provide credit facility. The main reasons for people not to purchase NANDINI milk are no door delivery, less creaminess, less thickness, no credit facility.
Complaints regarding NANDINI?

1) High price of the milk cannot make the common people to afford it. 2) No cream appears on the milk. Page 62 KLS's Institute of Management Education and Research, Belgaum

3) Cannot get good quality curd from the milk. 4) Cannot get the butter. 5) Quality of milk is not maintained regularly. 6) Shortage of supply in summer season.(evening route). 7) Agents complaints that crates are not clean. 8) The agents mention that some time leakage/damage of milk packet occur in the crate due to the over packing of milk in the crate.(12 liters instead of 10 liters.)
Suggestions
1) As many want buffalo Milk Company should go for FULL CREAM BUFFALO MILK product item as family milk. 2) As majority knows that dairy milk is good for children the company should target its STANDARD milk as children milk. 3) As the packet milk users have tendency of skipping from one brand to another brand the company should take it as an opportunity to attract the consumers who are using other brands of milk.

4) As the door delivery is an effective sourcing, the company should follow its a distribution channel. 5) BEMUL should take care to maintain the cleanliness of the crate. 6) There should be no over packing of milk in the crate to avoid leakage of the milk. 7) BEMUL has to provide door delivery facility to the customers because maximum number of people purchases loose milk due to door delivery facility. 8) The people prefer to purchase loose milk because credit facility &door delivery ,so BEMUL should try to give credit facility to the customer in order to increase its sales. 9) Effective sales promotional activities such as advt, banners, hoardings, and pamphlets should be distributed to attract the consumers.
CONCLUSION
Belgaum Milk Dairy is providing quality milk and milk products. It has succeeded in creating good name in the minds of people for its quality, availability and relatively satisfying the needs of consumers. Page 64 KLS's Institute of Management Education and Research, Belgaum
Consumers perception towards nandini milk is excellent as it has good brand image in the market. Most of the consumers said that the advertisement of nandini milk is not effective compared to the other competitors. As compared to other milk brands, the promotional activities of nandini milk is low
ANNEXURE QUESTIONNAIRE
Dear Sir/Madam, I am pleased to introduce myself Girish. J. Shiragannavar an MBA student of KLS -Institute of Management Education and Research Belgaum, as a part of our curriculum, I am doing my summer in plant project in Belgaum milk union ltd, and am undertaking a survey on Consumer preference towards Nandini milk and its milk products in Belgaum

City. The information provided by you will be strictly kept confidence and used for academic purpose only. Your co-operation will be highly appreciated.
Name: ___________________________________ Address: _________________________________

1. Are you aware of Nandini milk? a) Yes 2. Which type of milk you are using a) Branded c) Combination of Both 3. Which milk product you are presently using a) Nandini b) Arokya c) Aditya d) Unbranded e) Other 4. How do you buy milk products? a) Grocery shop c) Home delivery 5. How much quantity of milk you are purchasing daily? a) 250ml c) 1000ml a) Price c) Freshness e) Thickness a) Price b) 500ml d) Above 1000ml b) Service d) Creaminess f) Credit b) Service Page 66 KLS's Institute of Management Education and Research, Belgaum b) Milk Parlor b) Unbranded b) No
6. What factors do you consider while purchasing milk among the following?
7. Why you are not consumer of NANDINI milk?

c) Freshness e) Any other 8. How do you know about NANDINI products? a) Television c) Wall painting b) Friends d) Others d) Creaminess
12. Indicate your opinion about Nandini milk with respect to the mentioned attributes?
Attributes Price Quality Taste Thickness Packaging Brand image
High
Moderate
Low
13) Complaints regarding NANDINI?
14) If any Suggestions
Thank you
BIBLIOGRAPHY
Annual Reports of Belgaum Milk Union. Journals of KMF Marketing Management Marketing Research By Philip Kotler By Tull and Hawkins

WEBSITES: WWW.KMF NANDINI.COM WWW.INDIANDAIRY.COM

Executive Summary: Belgaum Milk Union LTD

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BELGAUM MILK UNION LTD.

Page 1 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD. EXECUTIVE SUMMARY

BELGAUM MILK UNION LTD.

DAIRY INDUSTRY IN INDIA

DEVELOMENT OF DAIRY INDUSTRY IN INDIA

NATIONAL DARIY DEVELOMENT BOARD

BELGAUM MILK UNION LTD.

BELGAUM MILK UNION LTD.

Services rendered by NDDB

INTRODUCTION TO KARNATAKA MILK FEDERATION

BELGAUM MILK UNION LTD.

KARNATAKA MILK FEDERATION

DISTRICT CO-OPERATIVE MILK UNION

VILLAGE LEVEL MILK CO-OPERATIVE SOCIETY

MILK PRODUCERS (MEMBERS)

Page 6 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD.

Page 7 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD.

The growth process

Milk Procurement (Kgs/day) 50000

Milk Sales (Lts/day)

Page 8 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD.

THE THREE- TIER STRUCTURE

KARNATAKA MILK FEDERATION

DISTRICT CO-OPERATIVE SOCIETY

DISTRICT CO-OPERATIVE SOCIETY

DISTRICT CO-OPERATIVE SOCIETY

Page 9 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD.

THE DISTRICT CO-OPERATIVE SOCIETY (DCS)

THE MILK UNION

Page 10 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD.

Page 11 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD.

THE PRODUCTS OF KMF

Page 12 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD.

Page 13 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD. COMPANY PROFILE

Address of the Company

JRL/9072/DAY/1985-86. Date:- 24th December 1985.

Type of unit Organization set up Labors

Small Scale. Land-22acres Permanent: - 128 Contract :- 78 206

BELGAUM MILK UNION LTD.

Page 15 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD.

BELGAUM MILK UNION LTD.

BELGAUM MILK UNION LTD.

Toned Milk: Karnatakas most favorite milk. Nadine

Full Cream Milk:

Homogenized toned milk:

Page 18 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD.

Ghee:A state of purity, Nandini ghee made from pure

DEPARTMENTS OF BEMUL:Page 19 KLS's Institute of Management Education and Research, Belgaum

BELGAUM MILK UNION LTD.

PROCUREMENT AND INPUT DEPARTMENT:- (P&I)

BELGAUM MILK UNION LTD.