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MYMUL
EXECUTIVE SUMMARY
Marketing is a social and managerial process by which an individual and group obtain
what they need and want, through creating, offering and exchanging products of values with
others. Marketing is getting the right goods and services to the right people by right people,
at right time, with the right communication, at a profit.
The document provides the details of study titled A Study on Distribution Management with
reference to MYSORE MILK UNION LIMITED.
An appropriate research methodology for the systematic design of report, collection, analysis
and reporting of data and findings relevant to the specific marketing situation facing the
organization was employed. Primary data is collected by interviewing persons chosen for
this study, with the help of a structured, open and close ended questionnaire. Secondary data is
collected from various journals, reports and websites.
Tabulating the data does analysis of data and pictorially representing the same in the form of
charts besides precise interpretation is also provided. Probability sampling technique is used
for this study and the sample size is of 100 people from Mysore city.
The respondent's response is presented with a well-structured questionnaire as a part of the
survey method. The opinions of the respondents were rated on a scale to arrive at the level of
awareness, satisfaction and the perception of the product.
This report also reveals the detailed organization study which includes industry profile,
Company profile with special reference to organization under study.
The analysis of the data led to a wide pool of findings about various aspects related to the
Product perception. These findings were taken up for logical conclusions. Some interesting
findings were made during the course of the study, the most important being regarding the brand
awareness.
Distribution Management
MYMUL
CHAPTER 1
INTRODUCTION
Distribution Management
MYMUL
DISTRIBUTION MANAGEMENT
INTRODUCTION ABOUT THE PROJECT
A systemized study requires proper planning and implementation of the same. So, this research
design includes an outline of the study, which was conducted at MYMUL, MYSORE. The
design of the study contains information stating the statement of the problem, objective of the
study, scope of the study, significance of the study, research methodology, and sources of data,
tools and techniques of data collection, plan of analysis, limitations of the study and operational
definition of the concepts, sampling and sampling design.
This internship is basically about effectiveness of sales and distribution management
followed by Mysore Milk Union Limited. It is a co-operative milk union fully owned and
managed by milk producers of Mysore and Chamarajanagar districts of Karnataka state. The
union is constantly striving to further the dairy development and marketing activities in its
milk shed area.
The summer internship project report as per the requirements of the source not only fulfills
that very requirements but has also developed us personally by getting acquainted with how
the company regulates. Thus, this project report will help us to gain the insight about the
industry and help us enhance our knowledge in every way possible.
This project report is a study of sales and distribution management at Mysore Milk Union
Limited.
Milk is an almost ideal food. It has high nutritive value. It supplies body building proteins,
bone forming minerals and health giving vitamins and furnishes energy giving lactose and
milk fat. All these properties make milk an important food for pregnant mothers, growing
children, adolescents, adults and patients.
The national institute of nutrition has recommended a minimum of 300gms daily intake of
milk for children between 1 to 3 years of age and 250g for those between 10-12 years. In our
Distribution Management
MYMUL
country, most such adults consume milk only as whiteners for tea and coffee, some dahi or
buttermilk.
PROBLEM STATEMENT:
Distribution management in this competitive world have to bring awareness in the minds of
consumers and also it has to come up with the updated channels and sales promotional
strategies.
Hence my study focuses on, analyzing the effectiveness of the reach through different channels
of distribution, to the consumers and the awareness of brand among the consumers of Mysore
district.
NEED OF THE STUDY:
The development of the distribution channels requires that a firm must determine what its best
potential markets are and then select the means by which it will try to sell to its customers.
Distribution channels often require the assistance of others in order for the marketers to reach its
target market.
OBJECTIVE OF THE STUDY:
To know the effectiveness of the distribution management.
To analyse the customer expectation.
To study the impact of distribution on consumer buying.
To analyse the different medium through which the advertisement reaches maximum
number of people in the market.
SCOPE OF THE STUDY:
This study covers the customers of Nandini milk and its products in Mysore district.
This study is to understand the distribution management of MYMUL.
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RESEARCH METHODOLGY:
Research design
Descriptive research:
Descriptive research is used to collect various information from customer to study the
distribution level with respect to Nandini milk.
Data collection
Data can be collected in two ways-primary method and secondary method.
The primary data is collected through the raising structured questionnaire to customer.
The secondary data is collected from the journals, articles, books and related websites.
Sample design
The samplings taken for this study are randomly 50 customers in Mysore. The
probability sampling will be used.
Sampling techniques: structured questionnaire is used.
LIMITATION
The study is purely for academic purpose.
The time constraints the study is restricted to MYSORE district only.
The sample size has been confined to 50 due to lack of time and resources.
Distribution Management
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Distribution Management
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CHAPTER 2
INDUSTRY PROFILE AND COMPANY PROFILE
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INDUSTRY PROFILE
HISTORY OF MILK INDUSTRY:
Earlier people used to have animal milk for food. However the people of ancient Babbly
Lon, Egypt and India raised dairy cattle as early as 400 B.C. At that time, the family cow
was the cheap source of milk. A family used as much it needed and traded or sold the rest to
neighbor.
A dairy industry grew; several cities passed laws to control the sale of milk. Some of
these laws made it illegal to add water to milk or to remove cream from milk. However, none
of the early laws set health standard for milk. Many dairies added chemical preservatives to
milk. But after sometimes these chemicals were found to be harmful, laws prohibited their
use. Gradually cities and states began supervising the milk industry in order to protect public
health. In 1856 an American inventor named Gail Borden received a patent for the first
successful milk condensing process.
About in 1885, dairies first used glass, jars and bottles, in which workers were filled milk
by hand. The invention of bottling machine in 1886 has proved that filling the containers easier
and faster.
In 1890, Stephen M. Babcock, an American agricultural chemist developed a list to
measure the fat content of the milk. The market value of milk depends on its fat content,
which dairies still determine by the Babcock test. In 1890s a few dairy plants introduced
pasteurization, a process invented by the French scientist Louis Pasteur.
One of the greatest epics -Mahabharata gives us the fact that dairying has an age-old
background. In those days cattle were treated as god. As the years passed, people started
using cattle to satisfy their needs of milk, milk products and for cultivation. But during olden
day's milk and milk products were not sold. Only after 1940's dairying was started in an
organized manner, in those days dairies were encouraged to make pasteurized butter, mainly
for the British army. One of such firm was "Urban Milk Supply Scheme". After
independence greater Bombay Milk Scheme has come into existence. By this time many
state government set up composite "Dairy Development Department" to facilitate milk
production, procurement, processing and marketing. A dairy is place which deals with
collection, processing of milk and manufacturing of various milk products on an industrial
scale.
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Distribution Management
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The trends are now changing fast in India too. It is expected that the processing of the milk on
organized scale will increase sharply in developed countries. This will consequently increase the
opportunities for the value addition. While the value of the output of the dairy products in the
countries food sector has increased from 5-7% during the same period. Now the days of milk
scarcity and imports are behind us. The organized sector can seize the opportunity of tapping the
market of value added dairy products like butter, cheese, lactose, khova, paneer etc.
It is beyond doubt to mention that the organized dairy industry has done a splendid job by
transforming itself from an import dependent enterprise to self sufficient industry and the
embarking on export of various products. And now it is poised for another wave of expansion by
undertaking large scale production of milk in the organized sector.
MILK FEDERATION:
The Karnataka Co-operative Milk Producers Ltd came into existence on 1-5-1984by
federating the milk unions in the state and thus forming the state level apex organization.
When all the project activities are completed, the main role of the federation will be to market
surplus milk products and to produce and supply centralized inputs.
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COMPANY PROFILE
MYMUL
Mysore Dairy with the capacity of 10 TLPD was started in the year 1965 under the control
of the Department of Animal Husbandry and Veterinary Services of Karnataka State, which
was transferred to Karnataka Dairy Development Corporation in the year 1974. The capacity
was expanded to 60 TLPD in 1980 under the scheme operation flood and transferred to the
Karnataka Milk Federation in 1984. As per the Government policy the Dairy and its
Chilling Centers were handed over to Mysore Milk Union on 01.06.1987. The capacity was
expanded to 100 TLPD under the Operation Flood II and further expanded to 180 TLPD
under Perspective Plan I Programme.
Under the World Bank aided Karnataka Dairy Development Projects, the activities on Dairy
Development were taken up in the year 1975. The Mysore District Co-operative Milk
Producers Societies Union Ltd was registered on 23.11.1976, having the jurisdiction
extended to the entire Mysore District and Five Taluks of Mandya District. The Union
undertook the work of organization of Milk Co-operatives in AMUL Pattern with the main
objective of socio-economic reformation of the farmers in the rural areas through Dairying
as main subsidiary occupation.
Later the Union was bifurcated into Mysore and Mandya District Co-Operative Milk
Producers Societies Union Ltd from 01.04.1987. Consequent to the bifurcation of Mysore
District into Mysore and Chamara+janagar Districts, this Union is renamed as MysoreChamarajanagar District Coop Milk Producers Societies Union Ltd. Later from April
2015 Bifurcation of Mysore-Chamarajanagar district milk union as Mysore milk union and
Chamarajanagar milk union.
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Toned milk
Peda
Ghee
Butter
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Distribution Management
Paneer
MYMUL
Khova
Masala majjige
Mysore pak
Sweet lassi
Curd
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Badam Powder
Flavored Milk
Chocolate Bite
Jamoon Mix
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Nandini Homogenized Toned Milk is pure Milk containing 3.1% Fat & 8.5% SNF. This is
Homogenized and pasteurized. It gives you more cups of tea or coffee and is easily
digestible.
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AREAS OF OPERATION
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As a district milk union under KMF, individually the union has no opportunities to
expand their operation because the MYMUL is structured under KMF as a district milk
union of Mysore district. The union itself acts as a branch of KMF but the union has
opportunities by way of marketing its milk products out of its limited market borders means
of its district market borders.
The district milk unions are controlled by the KMF, which acts as a mother
organization to all other district unions in Karnataka. The union receives all types of demand
orders from in and outside the country. Especially the milk powder has more demand from
foreign countries. The union will produce other milk products according to their demand
rate.
PROCUREMENT:
To procure the surplus milk available in the primary milk producers Co-operative societies
of the union jurisdiction area.
Organising dairy co-operative societies at village level.
Organising milk procurement route to procure milk.
All the dairy co-operative societies in the union jurisdiction will be a share holder to the
affiliated federal body where in the dairy co-operative societies will be assisted in procuring
milk in both shifts and providing technical input support to the producer members and to
make remunerative payment to the dairy co-operative societies on the quality parameter.
TECHNICAL INPUT ACTIVITIES
It is one of the fundamental objectives of MYMUL to carry out activities for enhancing Milk
production in its Milk shed area. In view of this, various technical input services like
veterinary health care, artificial insemination services, vaccination, supply of balanced cattle
feed and quality fodder seed etc. are provided for enhancing milk production and economic
development of farming community.
ANIMAL HEALTH AND EMERGENCY SERVICES
The union is taking special care to promote the health of the cattle of member milk
producers. Veterinary health care facilities have been extended to all the DCS. Emergency
veterinary routes, Health camps, Vaccination against Foot and mouth disease are being
provided to all functional societies. Mass deworming programme is carried out twice in a
year at all DCS. There is also a backup of Veterinary First Aid Services to needy milch
animals through trained DCS staff. Introduced Trio-NB-Sac and 'Godhara Shakthi' to
improve quality of Milk.
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Jersey
Dodla
Arogya
Gomatha
Thirumala
Swastika
Loose milk vendors
Heritage
Jersey:
Plant located at Andhra Pradesh
Sale in union jurisdiction 45tlpd (100 tlpd in city)
MRP is 20per litre seller rate rs.22 based on quantity
Commission ranges from 40-70 per litre
Quality perception-thick and longer shelf life
Flexible distribution-retailers, wholesalers or anyone willing to sell
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Payments cash and carry or while collecting empty crates on return trip.
Availability- mostly retail outlets and now capturing institutional sales by any means.
Vigorous advertisement especially at the point of purchase.
Dodla:
Plant located at Nellore
Availability of raw materials at cheaper rate.
sale in union jurisdiction 18tlpd
MRP rate Rs.19per litre-seller rats Rs.22
Commission ranges from 40-50paisa.
Quality perception-thick and long shelf life.
Flexible distribution-retailers or anyone willing to sell
Returns will be accepted
Payment-cash and carry or while collecting empty crates on return trip.
Channel members are playing critical role in boosting the sales.
Packing is attractive with multi colour pricing on sachets.
Consumers perceive that milk is good for making curds.
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Arogya:
Plant located at Bangalore.
Sale in union jurisdiction 10tlpd.
MRP rats Rs.18per litre
Commission ranges from 60paisa per litre.
Availability- mostly retail outlets like bakeries, condiments and departmental stores.
Packing is attractive with multi colour pricing on sachets.
Concentrating on value added products and not much on milk.
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SWOT ANALYSIS
A SWOT analysis is a strategic planning tool used to evaluate the strengths, weaknesses,
opportunities and threats involved in a project or in a business venture or in any other
situation requiring a decision.
Environmental analysis
Internal Analysis
Strengths
External Analysis
Weakness
Opportunities
Threats
SWOT Analysis
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OPPORTUNITIES
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Since the Mysore district is under Cauvery basin, perennial greens are available to the
cattle.
Institutional markets, bakeries, hotels etc., are not fully tapped and these can be
captured preferably by direct marketing.
Diversification of milk products like Peda, Mysore Pak.... etc.,
Exploit the Human Face, by positioning in the market as an organisation with social
responsibilities of serving the milk produced by paying remunerative price and serving
customer by offering hygienic quality product at a reasonable price throughout the
year. Union is not in the business to maximise the profit as in the case of private
dairies and is acting as price stabilizing force in the market. Projecting these to the
customers will reinforce the positive image of the organisation in customers minds as
a caring organisation which service to them as its motto.
THREATS
After liberalization, entry barriers in the dairy industry eased for new entrants.
The competition from Co-operatives like Dodla, Heritage, Kamadenu.... etc.,
Private dairies procure milk at low cost from producers and sell milk resorting to
unethical trade practices. It is a marketing war in which union has to fight by rules and
other private dairies do not fight by rules. Hence, there is no level playing field for
organization with social responsibilities to compete with organizations with purely
profit motive.
Some private dairies are selling homogenised milk, which appears rich. The union
cannot homogenize all its huge quantity of milk due to lack of homogenizing capacity
and increase in processing cost.
Plans of major companies like Reliance, ITC to enter into milk market in future.
INFRASTRUCTURAL FACILITIES
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I MILK PROCUREMENT
*Milk collection from farmers.
*Dairy co-operative society.
*Bulk milk products.
II. TRANSPORTATION
*They have procurement group contract vehicles.
*Milk Tankers.
III. MILK PROCESSING
*Raw milk reception dock
*Cream separators
*Milk pastures
*Cream pastures
*Stored tanks
*Electronic milk tester and milk scan
IVPACKING
*Milk packing machine
*Curd packing machine
*Lassie, masala majjige packing machine
*Flavored milk packing machine
*Ghee packing machine
V ENGINEERING
*Reformation equipments
*Boiler equipment
*Effluent treatment plants
*Electronic generation
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VI MARKETING
a. Distribution network
*Agents
*parlors
*Depots
*Franchise
b. Distribution Transport
*Trucks
* Goods auto
*Mobile
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CHAPTER 3
THEORITICAL BACKGROUND OF THE STUDY
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CHANNEL CONFLICT
Channel conflict can arise when one intermediary's actions prevent another intermediary
from achieving their objectives.[1] Vertical channel conflict occurs between the levels within
a channel and horizontal channel conflict occurs between intermediaries at the same level
within a channel.
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION RESULTS
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Data analysis is a practical in which raw data is ordered and organized so that useful
information can be extracted from it. The process of organizing and thinking about data is
key to understanding what the data does not contain. There are a variety of ways in which
people can approach data analysis, and it is notoriously easy to manipulate data during the
analysis phase to push certain conclusion or agendas. For this reason, it is important to pay
attention when data analysis is presented, and to think critically about the data and the
conclusions which were drawn.
Raw data can take a variety of forms, including measurements, survey responses, and
observation. In its raw forms, this information can be incredibly useful, but also
overwhelming. Over the course of the data analysis process, the raw data is ordered in a way
which will be useful. For example, survey results may be tallied, so that people can see at a
glance how many people answered the survey, and how people responded to specific
questions.
Charts, graphs, and textual write ups of data are all forms of data analysis. These methods
are designed to refine and distill the data so that readers can glean interesting information
without needing to sort through all of the data on their own. Summarizing data is often
critical to supporting arguments made with that data, as it is presenting the data in a clear
and understandable way. The raw data may also be including in the form of an appendix so
that people can look up specifics for themselves.
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GENDER
FREQUENCY
PERCENTAGE %
1.
MALE
20
40%
2.
FEMALE
30
60%
TOTAL
50
100
GRAPH-1
MALE; 40%
FEMALE; 60%
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From the above data it can be analysed that 40% are male and 60% are female.
TABLE-2
Table showing the age group of respondents
Sl.no
PARTICULARS
NO OF RESPONDENTS
RESPONDENTS %
1.
10-24
10
20%
2.
25-39
14
28%
3.
40-54
19
38%
4.
Above 55
14%
TOTAL
50
100
GRAPH 2
40 to 54; 37%
10 to 24; 19%
25 to 39; 28%
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TABLE-3
Table showing percentage of people consuming milk and milk products.
OPTIONS
CUSTOMERS
PERCENTAGE
YES
26
52%
NO
24
48%
TOTAL
50
100
GRAPH-3
NO; 47%
YES; 53%
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TABLE-4
Table showing frequency of buying milk and milk products
Sl.no
Frequencies
No of respondents
percentage
1.
Daily
37
74%
2.
11
22%
3.
4%
4.
Once in a week
TOTAL
50
100
GRAPH-4
Daily; 74%
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TABLE-5
Table showing amount of purchase of milk and milk products.
sl.no
Amount of purchase
No of respondents
percentage
1.
16
32%
2.
1 to 2ltr/kg
24
48%
3.
2 to 4ltr/kg
14%
4.
6%
TOTAL
50
100
GRAPH 5
1 to 2ltr/kg; 47
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TABLE-6
Table showing usage patterns of different categories of milk and milk products
Sl.no
Usage pattern
Volume%
1.
Bread spread
70%
2.
Flavored milk
76%
3.
Powder milk
40%
4.
Fresh cheese
52%
5.
For cooking
82%
6.
Dessert
45%
7.
Health drinks
40%
GRAPH-6
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TABLE-7
Table showing percentage of buyers buying branded milk products and unbranded.
Sl.no
Categories
No of respondents
Percentage%
1.
Branded products
37
74%
2.
Unbranded
13
26%
TOTAL
50
100
GRAPH-7
unbranded; 26%
branded; 74%
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TABLE-8
Table showing kind of purchase made for unbranded products.
Sl.no
Category
No of respondents
Percentage
1.
Packed
32
64%
2.
Loose
18
36%
TOTAL
50
100
GRAPH-8
Loose ; 36%
Packed ; 64%
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TABLE-9
Table showing ranking of companies according to the preference of the customers.
Sl.no
Brands
Ranking
Nandini
Amul
Nestle
Mother diary
Purabi diary
Hatsun
Brittania
GRAPH-9
Ranking
Nandini; 1 Amul ; 2
Brittania ; 7
Nestle ; 3
Mother diary; 4
Hatsun ; 6
Purabi diary; 5
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TABLE-10
Table showing percentage of buyers buying other brands if nandini is unavailable.
Sl.no
Options
Customers
Percentage
1.
Yes
45
90%
2.
No
10%
TOTAL
50
100
GRAPH-10
NO; 10%
YES
NO
YES; 90%
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TABLE-11
Table showing percentage of customers who are aware of nandini products.
Sl.no
No of products
No of
respondents
Percentage
1.
1 to 5
8%
2.
6 to 15
36
72%
3.
16 & above
16%
4.
All products
4%
TOTAL
50
100%
GRAPH-11
all products; 4% 1 to 5; 8%
16 & above; 16%
6 to 15; 72%
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TABLE-12
Table showing rating of factors while purchasing milk products.
Sl.no
Ratings
No of
Percentage
respondents
1.
6%
2.
10%
3.
12%
4.
32
64%
5.
8%
TOTAL
50
100
GRAPH-12
Ratings
5; 33%
1; 7%
2; 13%
3; 20%
4; 27%
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CHAPTER 5
SUMMARY OF FINDINGS, CONCLUSION AND SUGGESTION,
RECOMMENDATION
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SUMMARY OF FINDINGS
MYMUL has a wide marketing network throughout the state.
The customer awareness level towards Nandini milk is excellent because all the 100
respondents are aware of it.
Proper training programs for farmers are an additional services provided by the
company which is improving Nandinis popularity among the farmers and ensures
quality and consistency of supply of milk from them.
Majority of respondents belongs to the age group of 22-50 years.
Majority of respondents are of female category.
Majority of the respondents have chosen TV as the best media to increase the sales.
Majority of the respondents buy the products because of their own decisions.
Majority of respondents have suggested creativity in advertisement makes it most
memorable.
Majority of respondents say Nandinis advertisement convey enough required
information about its products.
Majority of the respondents say picturisation strategies impress the customers more.
Majority of the respondents buy Nandini products because of their availability.
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SUGGESTIONS
The company should make more use of the different medias available like television,
radio and other medias which can attract lot of customers.
It can be suggested that advertisements should be made more attractive and innovative
to draw the attentions of the customers.
It can be suggested that different offers must be made available and that will attract
customers.
Most of the customers buy Nandini products due to its ease availability, so maintain
products available to customers through effective distribution channels.
It can be suggested that the company should have their upper held priorities towards
revising their pricing strategies to popularize the products for the mass greater reach
outs in the future period of time.
Company can reduce the price of the product by adopting few cost reduction
techniques, so it will help attract different classes of people.
Bonus and incentives can be given to the dealers in order to motivate them.
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CONCLUSION:
Though the study is not exhaustive, the data obtained is enough to understand the attitude of
the customers towards Nandini products.
The result of the survey proves that, Indians in spite of being price conscious, nowadays
they are more health concerned and quality oriented. To be dominant players in the market,
sales promotion is very crucial weapon. To maintain and retain the tough customers and
also, to build a good rapport with the channel partners.
According to market research the consumer had given positive response regarding all
aspects of Nandini products. It shows Nandini is attracting consumers and prospecting in
business. But in a competitive field, one should not satisfy with ones present performance.
In order to maintain higher competitive efficiency, regular market research will help an
organisation to ascertain the consumer preference and according to them for creating and
maintaining brand image in the minds of people.
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BIBLIOGRAPGHY
BOOKS REFERRED:
Philip Kotler, Marketing Mangement, 11th edition, Pearson education Asia
Publication.
Pingali Venugopal, Sales and Distribution management, SAGE RESPONSE
PUBLISHERS, Response edition.
ARTICLES:
Bob Trebilcock, Editor at Large(2012), Distribution and Logistics.
Dave Kahle, Power strategies for Distribution Salespeople.
WEBSITES:
www.kmfnandini.com
www.mymul.com
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ANNEXURE
A study on distribution management at MYMUL, Mysore.
Mysore Milk Union Ltd.
I am Kavyashree.M.N pursuing 4th semester MBA in B N Bahadur Institute of Management
Sciences in Mysore. As a part of my academics, I am conducting this survey to know the
effectiveness of distribution and usage of Nandini milk and milk products at Mysore.
Questionnaire for consumers:
Nameof the
respondent
Contact No. (Optional)..
Address
Gender: male/female.
Age: 10-24
25-39
Occupation: Student
40-54
businessmen
Serviceman
Yes
No
once in a weak.
1 to 2 ltr/kg
2 to 4 lt/kg
4. What is your usage pattern of different categories of milk and milk product (in percentage volume)?
Usage pattern
% volume
Bread spread( butter )
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Nandini
Amul
Nestle
Mother dairy
Purabi dairy
Hatsun
Britannia
rank order
8. If your Nandini brand is not available, will you purchase other brand?
Yes
No
If yes, which brand would you purchase ?
a)Amul
b) Nestle
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10. How do you consider the following as factors while purchasing milk products.
(rate from 1-5 where 1= very poorly considered , 2= poorly considered, 3=indifferent, 4= strongly
considered, 5= very strongly considered)
Scale 1
2
3
4
5
Factors
Brand
Taste
Price
Perishability
Offers
Availability of
substitute
products
Size of the
shop
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