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CHAPTER-I

INDUSTRY PROFILE

INTRODUCTION

The ‘Indian Dairy Industry’ has made rapid progress since independence. A large
number of modern milk planes and product factories have since been established. These
organize dairies have been successfully engaged in the routine commercial production of
pasteurized milk and milk products.

India is the world’s largest milk producer certified by the ‘International Dairy
Industry’. This is the reason for the recognition of India as a dairy giant by the United Nation’s
‘Food and Agriculture Organization (FAO)’.

India has become the world’s No. 1 milk producing country, with output in 1999-2000
(marketing year ending March 2000) forecasted at 78 million tones. The annual rate of growth
in milk production in India is between 5-6 per cent, against the worlds at 1 per cent. India’s
annual milk production has more than trebled in the last 30 years, rising from 21 million tones in
1968 to an anticipated 80 million tones in 2001. This rapid growth and modernization is largely
credited to the contribution of dairy cooperatives, under the Operation Flood (OF) Project,
assisted by many multi- lateral agencies, including the European Union, the World Bank, FAO
and WFP (World Food Program), In the Indian context of poverty and malnutrition, milk has a
special role to play for its many nutritional advantages as well as providing supplementary
income to some 70 million farmers in over 5,00,000 remote villages.

Milk is the raw material of the dairy industry, which cannot be created artificially and
stored for a long time. The term “Milk Market” refers to the fluid whole that is sold to the
individuals usually for direct consumption.

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The dairy industry has come up to the present stage because of well-planned, effective
and coordinated efforts of the National Dairy Development Board, co-operative of the
Government.

THE MARKET OF MILK INDUSTRY IN INDIA:

A Beginning in organized milk handling was made in India with the establishment of the
“Military Dairy Farms” (oldest in Allahabad, 1889), the salient features of the market of milk
industry so far have been:

 Handling of milk in co-operative Milk Union (oldest: Allahabad, 1913) established all
over the country on a small scale in the early stages.
 Long distance refrigerator rail-transport of milk form AMUL to Mumbai since 1945.
 Pasteurization and bottling on a large scale for organized distribution was started as
Aarey (1950), Worley (1961), Calcutta (Haringhata, 1959), Delhi (1959), Chennai
(1963), etc.,
 Establishment of milk plant under the five-year plan for dairy Development al over India.
These were taken up with the dual object of increasing the national level of milk
consumption and ensuring better return to the primary milk producer. Their main aim
was to produce more, better and cheaper milk.

Actual expenditure of the milk industry in India’s first three Five-year plans:

Table-22

Plan period Expenditure

I five year plan (1951-55) Rs.7.8 Crores

II Five year plan (1955-61) Rs. 12 Crores

III five year plan (1961-66) Rs.36.6 Crores

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GROWTH AND DEVELOPMENT OF THE INDUSTRY

Until the year 1940, there was very little published information of the method of
preparation and use if these products. The credit for the first publication on the subject goes to
Dr. W. B. Davis, the first director of Dairy Research.

Within a span of three or four decades since Dr. Davis’ book arrival, considerable
research had been conducted at the National Dairy Research Institute and other places on
indigenous dairy produces.

Since then on the Dairy Industry had begun to grow at a rapid rate. There has been a
tremendous efforts put in by the various organizations to assure good quality milk to the people
and the saying of “All that is white is pure milk” came to existence.

HISTORY AND EVOLUTION

On January 1st 1958 a pilot scheme under the ‘Department of Animal Husbandry’,
Government of Karnataka was started to cater to the Veterinary Hospitals and Milk Process
facilities at National Dairy Research Institute (NDRI). In 1962 the Bangalore Milk Supply
Scheme came into existence as an independent body.

In June 1974, an interacted project was launched in Karnataka to restructure and


recognize the Dairy Industry on the co-operative principle and to lay foundation for a new
direction in dairy development.

Work on the first ever, World Bank aided Dairy Development Project was initiated in
1975. Initially the project covered 8 southern Districts of Karnataka and Karnataka
Development Corporation was set up to implement the project.

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Sprawling over an area of 52 acres, the Dairy had an initial capacity to process 50,000
liters of Milk per day. This dairy was handed over to the ‘Karnataka Dairy Development
Corporation (KDDC)’ in December 1975 as a part of Rural Milk Scheme of Mysore, Hassan and
Kudige under ‘Operation Flood-II’ and then transferred to ‘Karnataka Milk Federation (KMF)’
in May 1984 as a successor of SDDC.

The multilevel, multiunit organization with total vertical integration of all dairy
development activities was set up with Dairy Co-operative Societies at the grass root level, Milk
unions at the middle level and a Dairy Development Corporation at the state level as an apex
body, was vested with the responsibility of implementing Rs.51 Crore’s project.

At the end of September 1984, the World Bank aided project ended and the Dairy
Development activities continued under “Operation Flood-II”. The activities were extended to
cover the entire state expect coastal Taluk’s of UttarKannada districts.

The process of dairy development was continued in the second phase from April, 1984.
KMF i.e., Karnataka Milk Federation came into existence in May 1984 as a successor to KDDC
i.e., Karnataka Dairy Development Corporation after the closure of “Operation flood-III” on
31st March 1996.

Bangalore Dairy, a joint venture of UNICEF, Government of India and Government


of Karnataka was dedicated to the people of Karnataka on 23rd January 1965 by the then
Hon’ble Prime Minister Late Shri Lal Bahadur Shastriji.

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CHAPTER-II

COMPANY PROFILE

II.a.BACKGROUND AND INCEPTION OF THE STUDY

ORGANIZATION STATUS:

DCS Organizations; the member producers and their Dairy Co-operative Societies
(DCS) are the vital constituents of the Union and their progress is the judging yardstick on the
efficiency of the Union’s operation. Hence the maximum importance has been given to the
development and the progress achieved in various activities is the fruit of these efforts.

Komul comprises of Kolar District 11 Taluks with a total of 2930 revenue villages.
Under the 1682 Dairy co-operative societies (DCS) ambit out if which 88 are inclusively Women
Dairy Co-operative Societies. There are 2, 88,751 Milk producing members out of which
69,749 are women members. There has been steady growth in membership.

KOMUL is certified for ISO 9001-2000 for quality management and Food Safety Systems.

As at end of March 2007 the network off 1682 dairy Co-operative Societies (DCS) have
been organized and spread over 175 taluks in all the 27 districts of Karnataka.

These societies have been organized into 13 Milk unions. Komul at a glace can be known
form the table below.

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BRIEF OVERVIEW OF “KOMUL”

(Table-23)

PROCUREMENT and INPUTS

Inhabited Villages 2930

Milk producer Members 288751

Dairy Co-operative Societies 1497

Milk Procurement Routes 105

Artificial Insemination Centers 1475

PROCESSING PLANTS CAPACITY

Kolar Dairy 2,00,000 Kg’s PD

Gowribhidanur Chilling center 1,00,000 Kg’s PD

Sadil 1,00,000 Kg’s PD

Chintamani 1,00,000 Kg’s PD

MARKETING and SALES

Number of distribution routes 32

Agents 292

Milk Parlors 7

Every day Sachet milk sales 15.56 Lakhs

FINANCE

Total Share Capital 9.13 Crores

Annual Turnover 271.97 Crores

Source: Company Records.

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II.b.NATURE OF THE BUSINESS CARRIED

The organization’s core operation is in the milk industry. The company main
concentrates on producing milk products. The company is having at present 13 milk products
manufacturing organizations, among that KOMUL which is located in Kolar.

The Kolar milk union limited is a typical example of a successful family owned and
managed business house, which constitutes the bulk of number of business houses prevalent in
the country.

II.c.VISION, MISSION, OBJECTIVES and QUALITY POLICY

1) VISION

"Wish to grow into a model milk co-operative in the country"

2) MISSION
The mission of this co-operative milk producer's organization is to eliminate middlemen
and organize institutions owned and managed by the milk producers by themselves, by
employing professionals. Achieve economies of scale and to ensure maximum returns to the milk
producers, at the same time providing wholesome milk at a reasonable price to urban consumers.
Ultimately, the complex network of co-operative organization should build a strong bridge
between masses of rural producers and millions of urban consumers and achieve a socio-
economic revolution in the vicinity of the territory.

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3) OBJECTIVES:

 The primary objective of dairy development program in Karnataka is to encourage the


growth of the dairy industry in the rural areas and to supply genuine milk to all the cities in
the state.
 Providing assured remunerative market for all the milk sold by the farmer members.
 Organizing milk co-operative societies at village level and providing extension service.
 To ensure the provision of milk production, inputs, processing facilities and dissemination of
know-how.
 To facilitate rural development by providing opportunity for self - employment.

4) QUALITY POLICY

The quality policy of Komul is to maintain a leading position and international standards
and also to build high level of customers over their products by providing high consumer
surplus.

Paramount importance has been given to quality and hygiene of milk and milk products
in the dairy. This is the reason why at every stage quality maintenance is done. It is due to
this reason that they were able to get the ISO-9001-2000 for quality management.

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II.d.PRODUCT PROFILE

1. Toned Milk: Karnataka’s most favourite milk,is NandiniToned milk. Pure milk
containing of 3.0percent fat and 8.5percent SNF. It is available in 500 ml and 1-liter
packs.

2. Full Cream Milk: This pure milk containing 6percent fat and 9percent SNF, A
rich, creamer and tastier milk, ideal for preparing home made sweets and savouries. It
is available in 500 ml and 1-liter packs.

3. Cheese: Cheese plant was started in the union in 1997 at a cost of Rs.3.5crores. At
present Cheddar Cheese is produced from Cow Milk and ripened to various lengths of
time will be blended and processed to obtain processed Cheese.

4. Peda: Peda is sweetened heat desiccated product obtained from milk. It is Rich in Fat,
Proteins, Lactose and minerals especially iron content. On an average 25 Kg Peda is
Produced and sold in units of 250gms box. Each box contains10 pedas weighting 25 gm
each.

5. HOMOGENIZED MILK: This Milk is consistent right through; it gives you more cups
of tea or coffee and is easily digestible. This is available in 500ml, 1 liter and 5 liter
packets.

6. CURDS: ‘Nandini’ curds are made out of pure Milk. It is thick and delicious, giving all
the goodness of homemade curds. It is available in 200gms and 500gms packets.

7. BUTTER: Rich, smooth and delicious, ‘Nandini’ butter is made out of fresh pasteurized
Milk cream. Any preparations made from this will be a delicious treat. It is available in
100gms (salted), 200gms and 500gms cartons both salted and unsalted.

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8. GHEE: ‘Nandini’ ghee is made from pure butter. It is fresh and pure will 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. This is available in 200ml,
500ml, 1-liter sachets, 5-liter tins and 15kg tins.

9. FLUID MILK: Currently two types of HTST pasteurized fluid Milk in processed and
packed. They are toned Milk with 3percent fat and 8.5percent SNF (Solids Non Fat) and
full cream Milk with 6percent fat and 9percent SNF. Both are packed in the units of ½
Later and 1 Later Fluid Milk is sold in bulk to other dairies both inside and outside the
state.

10. UHT MILK: It refers to ultra high temperature heat-treated Milk. The concept of UHT
milk is absolute i.e. bacteria free besides retaining the nutritional quality of milk. During
the process, milk is exposed to a temperature of 137ºc for 4 sec and immediately cooled a
room temperature packing it aseptically.
At present two types of UHT Milk are being produced one “Nandini Good Life” with
3.6percent fat and 8.5percent SNF and another one is “NANDINI smart” with 1.5percent fat and
9percent SNF. Nandini Smart being low fat products good for health conscious people. Both the
milks can be stored for at least 45 days at room temperature. It needs no boiling before drinking
on an average 25,000 of both the Milk is being sold per day.

The packing material used for UHT Milk packing consists of 6 layers consisting of
polythene, aluminum, foil and paper which prevents the enter of air, water, light and bacteria
there by keeping the Milk well 60 level quality i.e. “less than one defect out of ten lakhs
products”, has been achieved in UHT Milk due to good quality initial raw Milk. At least
70percent alcohol test negative raw Milk is being used for UHT processing to get good quality
end products. The composition of the milks is more nutritious and is as below.

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11. MASALA BUTTERMILK: Masala buttermilk is manufactured and sold in the summer
season, especially form moth of March to July, the only period during which it gets
demand. On an average the selling mounts to about 1000lts. Per day in 250ml sachets.

12. MASTI DHAI: Recently Kolar dairy was taken up the production of “Masti-dhai” in
polythene cups of units of 200gms and 400gms. The Milk used for “Masti-dhai”
preparation consists of 4,7percent of fat and 11percent of SNF added with lactic stator
culture. This product is being marketed by Gujarat Co-operative Milk Marketing
Federation (G.C.M.M.F).

13. SLIM MILK POWDER: Excess Milk obtained during flush season is converted into
SLIM Milk powder at other product dairies as Mandya, Dharwad and Dempo dairies
belonging to K.M.F and packed in bulk sachets of 25kgs. Annually about 1000 tons of
SMP is produced and sold to other dairies in Karnataka, Bihar Milk federation, Delhi
Mother Dairy and others the remaining is used for reconstitution during lean.

II.e.AREA OF OPERATION

Total geographical area of Kolar district is 8,200 sq. km with 2889 inhabited villages and
the total population averaging 26,00,000. Average annual rainfall in the area is about 750mm.
The area of operation of the milk union consists of all the eleven taluks of Kolar District.
Initially the union started its function with a total number of 460 dairy co-operative societies. At
the time of bifurcation, the average daily procurement of the union was 1,56,774 Kg. Today
with a total 1385 functional Milk Producers Co-operative Societies [MPCS], a total membership
of 3.00 lakhs and an average daily procurement of about 5,53,350 Kgs/day., it ranks second as
far as milk procurement is concerned and first as far as the functional MPCS are concerned.
Total cattle population in the milk-shed area is about 4,20,000, which includes 1,60,000,
crossbred cattle. At present the average milk procurement per society is 401 kg per day with a
minimum price paid per kg of milk is Rs.8.94.

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II.f.OWNERSHIP PATTERN

SL NO CATEGORY NO. OF percent OF


SHARES SHARE
HOLDINGS

1. Promoters holdings 8,60,00,000 94.16

Promoters

2. Non – promoters holdings 35,65,000 3.90

Institutional investors i.e. Banks,


Financial institutions.

3. Others Public 12,00,000 1.31

4. Any other 5,62,700 0.63

KMF Employees

Total 9,13,27,700 100

In Komul more than 90percent of the share capital is owned by the promoters, nearly 4percent
is owned by the financial institutions, 1.31percent is owned by General public and 0.63 percent is
owned by their own employees.

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II.g.COMPETITORS INFORMATION

Competitors to Komul in local and in Bangalore

AREA’S:

 COMPETITORS IN LOCAL AREAS:


 HERITAGE MILK
 SWASTHIK
 DODLA GOLD FIELD
 GOOD MORNING
 AROGYA
 THIRUMALA
 SHRUTHI

 COMPITETORS IN BANGALORE AREAS:


 NILGIRIES DAIRY
 HERITAGE
 DODLA DAIRY
 LAKSHMI DAIRY
 SHIVA SHAKTHI
 KRISHNA DAIRY
 SHRUTHI DAIRY
 RAMANA DAIRY
 KAMADHENU
 SWATHI MILK

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II.h. INFRASTRUCTURAL FACILITIES

FACILITIES PROVIDED TO EMPLOYEES OF KOMUL:

 Training is provided to all officers/employees in their particular fields, conducted at CTI,


KMF and NDDB Erode/Gujarat, etc., The main aim of giving training is to gain
knowledge and experience in their work, which is helpful to the employees and to the
organization.

 Canteen facilities are provided at very cheap rate (meal is Rs.3 per head Rs. 3 for contract
laborers and Rs.10 for visitors).

 Conveyance allowance is given to all employees.

 Shift allowance/heat cold allowances are being paid to the employees who work in shifts
in respective places.

 The following leave facilities are given:


 30 days earned leave (EL) in a year.
 15 days casual leave in a year.
 12 second Saturday’s availment of encashment/compensatory off as the case may be.
 Half pay leave for 20 days in a year.

 INPUT SERVICES:
Profits so earned (if earned) BY the societies and KOMUL are used for the developmental
purpose of the DCS and villages have a whole. KOMUL provides a lot of other facilities to
its members through its input division. It should be noted that these facilities are only for its
members not for the non-members whereas milk in the society is collected from both
members and non- members. The various inputs facilities provided by the KOLAR DAIRY
are as follows:-

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1.TECHNICAL INPUT SERVICES: - KOMUL is providing various Technical input and
Extension Services to the producers members and their cattle through ‘Eleven Camp Office’ one
in each taluks i.e., Kolar, Chintamani, Gowribidnur, Malur, Mulbagal, Chikkabalapura,
Shitalgatta, Srinivasapura, Bangarpet, Bagepalli. For these camps all facilities are carried
forward. Each camp office has camp officer who under him has a veterinary doctor, agriculture
doctor and extenuation officer. In order to get treatment form the veterinary doctor, the members
have to get a coupon of Re.1 only from the society whereas the cost of treatment is Rs.34.

2.EMERGENCY SERVICES:- This is a special service provided to the members to help


overcome emergency situations. There will be a 24 hours veterinary clinic on wheels i.e., mobile
clinic working in different routes who cater to the needs of the members round the clock. To
avail this service the member has to get a coupon of Rs.30 only whereas the actual cost for such
a treatment is Rs.150.

3. ARTIFICIAL INSEMINATION:- artificial insemination (AI) has been the main function
tool in dictating this upsurge of development off Dairying in KOMUL. Farmers have taken up
cross breeding from way back in 1962. The union has surveyed and appropriately located AI
centers based on cattle population. It has been planned to popularize the idea of cluster AI
centers and replaced thee single AI center in a phased manner. The use of ‘Progeny’ tested
semen from “Nandini Sperm Station” is also giving a further boost to the breeding activities
To reduce infertility in the cattle, a frontal attack has been continuously attempted by conducting
infertility camps under the export guidance and by the use of infertility connected drugs.

During 1999-2000, a vertical silo of 10,000 liters capacity for storing liquid nitrogen has been
installed under TMDD program in collaboration with National Dairy Development Board and
KMF. This has helped in protecting the quality of semen straws. Thereby considerably
increasing the probability of conception during AI of cattle.

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 CATTLE FEED AND FODDER DEVELOPMENT: The union is implementing several
programs to increase milk production and also to reduce the cost of milk production and also
to reduce the cost of milk production in the milk shed area. Balance cattle feed is being
procured from the cattle feed plants of KMF for distribution among member producers.

Fodder seeds are distribution to member producers at 50percent subsidy. In addition to


these technical advices on growing of fodder crops are being extended to them. Chaff cutter
has been supplied to milk producers at 60percent subsidy to ensure effective utilization of
fodder.

A seed processing plant was commissioned at Rajankunte by investing Rs. 41 lakhs. The
union is catering to the seed production needs of many unions in Karnataka and also of
Southern India.

Lastly it needs to be noted that payment to the members is made according to the fat and
SNF (Solid Non Fat). An amount of 3 paisa/liter of the producers is retained by DCS for the
vaccination of Foot and Mouth and Thaileriasis this retained money is remitted in bank for
avoiding out break of any disease.

II.i. ACHIEVEMENTS AND AWARDS

The World Bank for its achievements has lauded the third and final phase of “Operation
Flood”, which culminated in April 1996. “Operation Flood” has helped knit ten million farmer
members, spread over 70,000 villages into a catalyst of “White Revolution” in the country.

In the year 1993 the prime minister P.V. NARASIMHA RAO has decided the KOMUL
as model milk union and he has given 60 lakhs subsidy to the organization.

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II.j. WORK FLOW MODEL

PRODUCTION PROCESS CHAT


Raw Milk

32 0 C

Reception CanWasher
CHILLER

Milk Inlet 40C

CHILLER
Processing

Section

Milk Storage
Chilled Water Inlet
Tanks
 
Pasturieser Cooling System

Cream
Separation
Cream Tank
Chilled Water Inlet
20C

Butter Section
Milk Inlet Milk Outlet
H M S T
Butter Cheese 40C 40C

But But Ghee


Ghee ter
Section PACKING
Ghee
Section ter
Section 17
II..k. FUTURE PLANS

The main aim of the organization is to meet the requirements of the day to day rapid
changes in the society, environment and advent of the ‘high-tech’ technology in the production
segment, the organization after identification has deployed the latest technologies and skills
for exploration and finished milk products.With vast experience in the Milk industries the
organization is capable of meeting the buyer’s requirements of different quantity and quality of
the milk products the supply/Delivery within the stipulated time.

The organization is also in a position to arrange many milk parlors in different places so
that the products are delivered to the consumers easily and effectively.

"You name or ask the product AND we shall supply the same."

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CHAPTER-III

McKENSEY’S 7 S MODEL OF KOMUL

McKinsey's 7-S

McKinsey and Co's 7S framework provides a useful framework for analyzing the
strategic attributes of an organization. The McKinsey Consulting Firm identified strategy as only
one of seven elements exhibited by the best managed companies.

These seven elements are distinguished is now called hard S’s and soft S’s. The hard
elements are feasible and easy to identify. They can be found in strategy statements, corporate
plans, organizational charts and other documents.

The four soft S’s however, are feasible. They are difficult to describe since capabilities,
values and elements of corporate culture are continuously developing and changing. They are
highly determined by the people at work in the organization. Therefore, it is much more difficult
to; plan or to influence the characteristics of the soft elements.

Although the often factor’s is below the surface, they can have a great impact of the hard
structures, strategies and systems of the organization. By the words above implies that that the
company should apply the McKinsey’s 7s model for its better performance.

Companies, in which these soft elements are present, are usually more successful at the
implementation of strategy.

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The 7-Ss are:

 Structure
 Shared values
 Systems
 Style
 Staff
 Skills , and
 Strategy .

There is no particular order to the 7Ss.

Each of the 7Ss is elaborated on below:

a) STRUCTURE

The policies and procedures which govern the way in which the organization acts within
itself and within its environment. The organization (e.g. hierarchical or flat) as well as the group
and ownership structure is included here. Also note Porter's categorization of group structures:
Efficient allocators of Capital; Allocation of Resources, etc.

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 ORGANISATIONAL STRUCTURE

MANAGING DIRECTOR

GENERAL MANAGER

MANAGER DEPUTY MANAGER

DEPUTY MANAGER SYSTEMS

EXTERNAL MANAGER(EO-1)/SR SUPERINTENDENT

EO-11/ACCOUNTS/ADMINSTRATION SUPERINTENDENT

EO-111/AA-1/SR.STENO

AA-11/SSR.TYPIST/STENO

AA-111/MOBILE VETERNARY ASST

PEONS/HELPERS

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A) PRODUCTION DEPARTMENT

The production department of the Kolar dairy performs the function of developing
procedures to transform a set of input elements like raw material like milk, money, machine into
specified output like curds, butter, ghee, Peda, masala butter milk etc. in assigned quality and
best in order to achieve the organizational goals successfully. Production department is the most
important and the largest department in the organization.

Komul has a well-organized and totally computerized system of production. The scope of the
department is to plan, execute and control all production activities with the available resources
inputs and equipment in co-ordination with the other department.

The Production manager heads the production department. The production manager monitors the
activities of this department with the support of Deputy Manager, Asst. manager and technical
officers.

The production department works 24 hours every day. As much as 100 thousand Kegs
packets of milk made every day and all are sold every day. The milk from the dairy is
transported through trucks to the dealers. Out of 4.56 lakh liters of milk procured 100008 liters
are sold as liquid milk (‘Nandini’ Milk) and the rest is converted into milk products like Butter,
curds, Ghee, Peda etc.,

B) QUALITY CONTROL DEPARTMENT

The quality control department in the plant performs the function of using the best raw
materials and other inputs, measuring and checking for maintaining then assured standards. As it
known that Komul represents quality, purity and freshness. The quality policy of Komul is to
maintain a leading position and international standards and also to build high level of customers
over their products by providing high consumer surplus.

Paramount importance has been given to quality and hygiene of milk and milk products
in the dairy. This is the reason why at every stage quality maintenance is done. It is due to this
reason that they were able to get the ISO-9001-2000 for quality management.

22
All the processors are controlled and monitored by computers. Hence, the probable
occurrence of manual error is completely eliminated. Milk is processed in a closed system with
out exposure to the atmosphere and human hands. It is due to this that milk is protected from the
contamination by external sources of bacteria and other contaminants. This efficiency of milk
processing operation is of the highest order and hence the quality of milk and milk products
processed in the plant is excellent.

C) MARKETING DEPARTMENT

KOMUL has a well – established marketing department, under the control of the
marketing manager. He is responsible for marketing and sales of milk and milk products. He is
responsible for selling to the target markets, framing the plans and policies to achieve the
marketing goals and he is also responsible for forecasting the demands for their products in the
market.

Now a day’s consumer the focal point of all business decisions. So it is very important to
focus on the consumer satisfaction to create more demand for milk and milk products for which
selection of a proper channel of distribution becomes very important for the long survival of the
union.

Presently KOMUL is vested with the responsibility of marketing milk and milk products.
In KOMUL, priority is given to meet the UHT milk demand and only the excess milk procured is
converted into milk products. KOMUL sells its milk and milk products under the corporate
brand name of “ NANDINI” within and outside the state. Most importantly KOMUL is a co-
operative institution.

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FUNCTIONS OF MARKETING DEPARTMENT:

 Selection of agents and calling tenders for setting up of parlours.


 Dispatch of the indented supplies to the channel members.
 Distribution of milk and milk products to local areas and district areas in its jurisdiction.
 Consumer compliant redressal with in 12 hours of reporting a compliant
 Improving the “ consumer satisfaction index”
 Meeting the needs of the channel members.

DISTRIBUTION SYSTEM OF KOMUL FOR MARKETING ITS PRODUCTS:

Milk and milk products have been distributed twice a day that is in the morning and evening.
The distribution routes are allotted on the basis of the quantity of milk or the number of crates in
a geographically convenient pattern. At present there are 292 milk selling agents, 7 parlors
operating for the distribution of milk and milk products to the public.

Agents are appointed on the basis of organizational norms. The agents are placed at
minimum distance of place from each other.

The agents collect milk twice in a day from the dairy. After the sales is done agents remit the
money to the dairy after deducting their commission, money can be remitted to dairy in 3 forms:

1. Cash payment
2. Cheque payment
3. Credit basis (institutions).

ACTION PLANS OF MARKETING DEPARTMENT FOR THE YEAR 04-05.

 It has 292 selling agents.


 Introducing insulated distribution transportation vehicle.
 To supply in time quality milk to customers in each and every corner of the city, smaller
capacity distribution transport vehicles will be introduced.

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SALES PROMOTIONAL ACTIVITY:

 Distribution of glow sign boards (both small and big)


 Distribution of V shape boards
 Caps/T-shirts/bags to be distributed to the agents.
 Wall paintings
 Painting of insulated distribution transport vehicles etc

TRAINING

 The marketing staffs are trained both on field as well as in the office. For training to the
marketing officers cross functions team workshops are to be conducted.

CONSUMER EDUCATIONAL PROGRAMS

 Plant visit for school children and others.


 Door to door marketing. Etc

MARKETING STRATEGY OF KOMUL

 Make the “ Nandini” milk and milk products available all through the day to prevent the
competitor’s penetration.
 Make the “ Nandini” milk and milk products available in time and in enough quantity at
consumers convenient places
 Improve the quality of service provided to channel members and also to motivate them for
better sales performance.
 Bring out consumers awareness on positive aspects of the organization
 Prompt consumer’s complaint redressal.

As part of their growth oriented strategy, they are strengthening their infrastructure facilities
by embarking on new ambitious projects such as commissioning of new equipment,
Strengthening existing facilities at all centers of the union.
25
D) FINANCE DEPARTMENT
Finance department is very important in an organization. It is not just confined to raising
funds, but extends beyond it to control the over utilization of funds and helps to monitor the
utilization of funds raised.

This function influences the operation of other essential functioning areas of the firm
such as production, marketing and personal.

FUNCTIONS OF FINANCE DEPARTMENT:

 Preparation of finance reports


 Preparation of annual budgets
 Budgetary control
 Scrutinizing of purchase bills and proposals
 Passing of all payment bills
 Maintenance of sales ledger
 Maintenance of all subsidiary books under the co-operative societies acts like cashbook,
debtors, and salary register.
 Preparing of cost sheet
 Direction of internal auditing.
There is an important section in finance department, which is the computer section.
Computer section is newly modernized and has expert computer operators, which does the
following functions:

 Maintaining records of sundry debtors of milk and milk products


 Preparation of dairy co-operative milk purchase bills
 Preparation of pay bills
 Daily generation of sales Cheque remittance etc.,

26
E) PURCHASE DEPARTMENT

Every industrial setup requires a separate department to cater to the needs of the various
departments. KOMUL has a centralized purchase department headed by a well experienced and
qualified purchase officer purchase manager who in turn is assisted by assistant
manager.Material purchase starts with the needful department forwarding an Indent which is a
kind of material requisition letter to the purchase department. On the receivable of such an
indent, the purchase department calls the suppliers to give quotations (purchases department
maintains a list of names of suppliers for suppliers for various materials). The suppliers have to
submit their quotation including all the details like the percentage of tax, excise, discount, etc.,
and the general terms and conditions.

After receiving the quotations from various suppliers, and ‘comparative Statement’ is
made containing the various quotations. The opinion of the user department is taken. The
quotation, which is feasible, is considered and that supplier is given the order. If there a need for
changes in the price so determined by the purchase department, the quotations are placed before
the committee consisting of heads of the various departments. Negotiations are made with the
supplier over the price if the price is found to be abnormal.

FUNCTIONS OF THE PURCHASE DEPARTMENT:

 Calling for quotations/Performa invoice etc., as the case may be. Processing the proposal in
the connected file and submitting to the managing director with recommendation seeking
approval from the accounts or finance section etc.,
 After approval, purchase order will be placed on the lowest quoted responsive firms for the
supply of concerned items on the quotations.

27
F) STORES DEPARTMENT:

Storing of required materials is an important function. The Kolar dairy has 4 stores each of
them maintaining certain materials only. The 2 different stores are as follows

 Store I : Maintenance of machines and spares.


 Stores II : Maintenance of packing materials, pouch films, carton boxes,
 Caustic soda, gunny bags, medicines used for employees, etc.,
 This stores is also known as consumable stores.
 Stores III : Maintenance of transport or vehicles related materials.
 Stores IV : Maintenance of stationery.
 Stores V : Maintenance of Oil and lubricants.
 Stores VI: Procurement and Input stores.

Based on the user’s application the materials are purchased. Here an important document
called the “Materials Receipt Report” (MRR) comes into the picture.

The stores raise the MRR after receiving the materials. These materials are then checked and
certified by the respective department (for stationery quality control certifies and for vehicles
spares transport section department certifies).

The materials are accepted if they are of the required. The stores department prepares four
copies of MRR.

The stores retain one copy, two are sent to the purchase department and one is sent to the
accounts or finance department to make payments to the suppliers. One the MRR is raised and
the materials are accepted, the next step of the stores department is to prepare the “Kardex”.

The kardex contains the date, purchase order number, supplier details, quantity received,
issued and the balance. If the purchase is done for a regular item the kardex will already be
present, but if it is a new then a new kardex is prepared.

An efficient Stores Manager/Officer heads the stores department and has an Assistant who
assists him along with helpers.

28
FUNCTIONS OF THE STORES DEPARTMENT:

 Make proper arrangements to retain the goods in a perfect condition till they are needed by
any of the users section.
 Maintain a up to date stock ledger.
 Bring to the notice of the lower amount of stock of any kind in the stores.
 Maintain the kardex with the regular entries so as to make the accounting easy.

G) ADMINISTRATION DEPARTMENT

A manager called administrative manager heads administration department. He comes under


the general manager. The administrative department of KOMUL holds all the official work. The
administrative manage reports tot he general manage, then the general manager to the managing
director (who is the chief of administrative department).

FUNCTIONS OF THE ADMINISTRATIVE DEPARTMENT:

The main functions of the administrative department are concerned with taking care of
matters like:

 Employee’s attendance.
 Sanction of increments.
 Promotions.
 Transfer.
 Disciplinary action against misbehavior of employees.
 Termination and retirement.
 To follow the policies and principles lain down by the top management.
 Recruitment and performance appraisal etc.,

29
b) SHARED VALUES

Shared values means that the employees share the same guiding values. Values are things
that you would strive for even if they were demonstrably not profitable. (Example: The
Christians being fed to the Lions.)

Values act as an organization’s conscience, providing guidance in times of crisis.

Example: 'The "famous" Johnson and Johnson Tylenol case is an example where a credo helped
provide guidelines for practical decision making. When tainted Tylenol was discovered, JandJ's
leaders could quickly make a decision to immediately, publicly, remove all Tylenol from the
nation's shelves, because they were following the organization’s credo - which said that JandJ's
first responsibility was to provide quality products to doctors, nurses and patients. This dramatic
action helped unsure a reinstatement of both public trust and employee pride in the integrity of
the company, and led to higher long term sales.

Identifying corporate values is also the first essential step in defining the organization’s role
in the larger community in which it functions.

 Ethical practices with an emphasis on transparency


 Equal opportunity
 Credibility for better dealing
 Care and compassion for others
 Team work

c) STRATEGY

The integrated vision and direction of the company, as well as the manner in which it
derives, articulates, communicates and implements that vision and direction.

Kolar Milk Union Limited will Endeavour to become learning and knowledge based
organization. The company will establish itself as a preferred supplier of metallic by delighting
the customers with its products and services.

30
The company will strive to become one of the most cost competitive plants in the
industry and generate wealth to serve its shareholders, the surrounding community and the
nation. Consistent with the purpose of improving the quality of life in India through leadership in
sectors of national economic significance, Kolar Milk Union Limited will strive to lead the Milk
sector for the Milk industry. This shall be achieved through high productivity, continuous
improvement and technological break-through.

Kolar Milk Union Limited shall Endeavour to return to society what it earns by creating a
difference in the lives of people in its immediate surroundings.

d) SYSTEMS

The decision making systems within the organization can range from management intuition,
to structured computer systems to complex expert systems and artificial intelligence. It includes

 Computer Systems,
 Operational Systems,
 HR Systems, etc.

COMPANY SYSTEM

The company is following systems such as quality control system, cost control
system, budget control system, and production system, planning and controlling system; goods
receipt system, material issue, pay roll system, and attendance information system, preparation of
monthly journal ledger and trial balance, link schedule preparation personnel information
system.

e) STYLE

Style refers to the employees shared and common way of thinking and behaving - unwritten
norms of behavior and thought:

 Leadership Style
 Organizational Culture

31
Here style implies the leadership approach of top management and the company’s
employee’s way of thinking and behaving. The style is the tangible evidence of what
management considers important, the way it collectively spends time and attendance and uses
symbolic behavior.

COMPANY STYLE

The company is following participative style workers in management (usually the


management will discuss with the union or group leader and enter into memorandum of
settlement under sec 12(3) of industrial dispute act, which comprises terms and condition, labor
compliments i.e. number of operation required to work per day (standard strength) and work load
category wise).

f) SKILLS

A skill refers to the fact that employees have the skills needed to carry out the company's
strategy. Training and Development - ensuring people know how to do their jobs and stay up to
date with the latest techniques.

Kolar Milk Union Limited is committed to upgrade the skills and knowledge of its
workforce for developing all employees into knowledge workers. In order to achieve this, The
company will strives to

a. Provide both ‘on the job’ and ‘off the job’ training to its employees
b. Prepare and implement a training plan based on identified training needs to
develop employees as better human beings

g) STAFF

Staff means that the company has hired able people, trained them well and assigned them
to the right jobs. Selection, training, reward and recognition, retention, motivation and
assignment to appropriate work are all key issues. At present the KOMUL is having 710
employees in the organization.

32
CHAPTER-IV

SWOT ANALYSIS OF KOMUL

SWOT analysis helps to know the strengths, weakness, opportunities and threats of the
KOMUL.

 STRENGTHS OF KOMUL:
 Quick availability of raw material.
 Popular brand known from years.
 Milk products are available at competitive prices.
 Ability to maintain uniform quality.
 Timely delivery.
 New technology implemented for production of milk.
 KOMUL has very good infrastructure.
 KOMUL attends to the complaints of consumers immediately.
 KOMUL pays the highest price for the milk collected from farmers in India and
loyalty among customers for the brand.
 The use of clarification and bactofugation in raw milk processing has improved the
quality of the milk products.

 WEAKNESS OF KOMUL:
 Lack of freezer and storage facilities.
 Lack of flexibility in system.
 Rivalry among sister unions.
 Government influence.
 Lack of personalize service to channel members.
 High overhead chargers.
 Damaged products are not accepted by the wholesellers results in wastage.

33
 OPPORTUNITIES OF KOMUL:

 The union is facing challenges from the new private entrants, who are mainly
thriving on unfair trade practice.
 They procure milk at least cost, with out bothering about the welfare of the
producers and with out extending any technical inputs for improving milk
production.
 They market milk by resorting to unhealthy and unethical practice deceiving the
unsuspecting consumers.
 The union wants to counter this in a positive manner by trying to improve its
efficiency of operation and market promotion.
 It wants to become well trenched in the market as " Market Leader ".
 The computer monitors the utilization of utilities such as water, electricity, steam etc
hence, it is possible to adopt efficient cost control measures to attain cost
competitiveness.

 THREATS FOR KOMUL:

 Competition from private dairy companies.


 Lack of awareness about the various products of KOMUL among the people.
 Low price strategy by the unorganized sectors.
 Advertising revenue moving to commercial broadcasting and new media.
 Lack of trainers- Unbalanced environmental taxes.
 Potential shortcomings of adequate protection of content.

34
CHAPTER-V

ANALYSIS OF FINANCIAL STATEMENT

There is no change in the share capital of the company from 2008 to 2009. But the reserves
and surplus were decreased from the year 2008 to 2009 because the company used these funds to
buy the fixed assets.
The sundry debtors were increased from Rs. 1825.24 crores to Rs. 2268.17 crores this
shows they are having more credit sales than last year. And the profit was increased from Rs.
17.22 crores to Rs.21.82 crores in the year 2009. This shows the company made profit of Rs.4.6
crores more than last year. The company reduced the losses and they are coming out from the
continues losses due to heavy competition in the market and lack of proper planning and
improper management. This shows there is a good improvement in the financial position of the
KOMUL .

35
CHAPTER-VI

LEARNING EXPERIENCE

Learning is synonymous to experience. This is because every human being learns hence
only out of experience and experience is the way of life. In life a person enhances his / her
knowledge only when exposed to real world situations, and by being exposed to the real
conditions in a systematic manner. He / she understand how to live and face various unforeseen
situations.

In this in-plant training I have learnt a lot. Interacting with an organization that has
existed since long was an experience of a life time. The employees of KOMUL had been of
tremendous support to me in doing my project work. They guided me in every step and gave all
the necessary information for doing the organization study. This has made me learn that people
in organization are accommodative in HR. Without their support it would have been highly
difficult.

The working of the dairy is well planned. Especially the production department, Quality
control and the packing section. Every human being consumes milk but not everybody knows
how it reaches him or her pure and fresh. Before interacting with dairy I had thought of the
complication and quality standards to be maintained for getting the packed milk.

36
CHAPTER-VII

GENERAL INTRODUCTION

Perception is the process by which individuals select, organize and interpret stimuli into
meaningful and coherent picture of the world. Perception has strategy implications for
marketers, because consumers make decisions based on what they perceive, rather than the
basis of objective reality. The lowest level at which an individual can perceive a specific
stimulus is that person’s absolute threshold.

Consumer’s selections of stimuli from the environment are based on the interaction of their
expectations and motives with the stimulus itself. The principle of the selective perception
includes the following concepts; selective exposure, selective attention, perceptual defense and
perceptual blocking.

Consumers organize their perceptions interest unified wholes according to the principles of
Gestalt psychology. The interpretation of stimuli is highly subjective and it is based on what the
consumer expects to see in light of previous experience, on the number of plausible explanations
he or she can envision, on motives and interest at time of perception, and on the clarity of the
stimuli’s itself.

Just as individuals have perceived images of themselves, they also have perceived images of the
products and brands. The perceived image of a product or service is probably more important to
its ultimate success than its actual physical characteristics products and services that are
perceived favorably have many chances of being purchased those products or services with
unfavorably or natural images.

Consumer strategies for reducing perceived risk include increased information search, brand
loyalty, buying a well known brand, buying from a reputable retailer, buying the most expensive
brand and seeking reassurance in the form of money- back, guarantees, warranties and free

37
purchase trial. The concept of perceived risk has products by incorporating risk reduction
strategies in their new product promotional campaigns.

Consumer goods

Consumer goods are those goods, which are meant for direct consumption by ultimate consumers
and house holds.

For example car, television, radio, furniture, etc. There is a direct demand for consumer goods.
The demand for consumer goods is elastic.

Consumer goods are classified into three types:

a) Convenience goods
b) Shopping goods
c) Specialty goods

a) Convenience goods

Goods that the customer usually purchases frequently, immediately and with the minimum
efforts are known as convenience goods. These goods are daily necessaries for human beings, for
instance coffee, tea, milk, etc.

b) Shopping goods

Shopping goods are consumer’s products; consumers make comparison in the selection of
products as to quality price, style, suitable etc.

Example: cloth, furniture, television etc.

38
c) Specialty goods

Specialty goods are those goods “which have some particular attraction for the consumer, other
than price, that induces him to put in special effort to visit the store in which they are sold and
make a purchase without shopping”. These are also known as luxurious goods.

Example: scooters, cars, bikes, watches, clothes etc.

 SIGNIFICANCE OF THE STUDY

The main purpose of the study is to find the consumer opinion towards Nandini products and to
find weather the consumer’s perception is matching with their expectation towards Nandini
products. The concept consumer has occupied a pivotal role in the present as well as the future
business scenario. Only those business firms’ survives, who continuously satisfies the needs of
the consumers tastes, preferences, healthy and quality products to the consumers of the society.
Consumer is the king of the market, therefore his/her expectations such as tastes, quality, prices,
etc., should be meticulously satisfied by the marketers of the products/services.

The buying behaviour and post purchase behaviour of the consumer can be expected only when
the good products rendered by the business firms. The perceptions of the customers are
diversified and they are more concerned about their buyings, in any field of the business
activities, therefore the business organizations should be tailored to cater the needs of the
consumers. The present business is consisting of competitive business, where the existing firms
as well as the new competitors should compete with the existing business firms. if any of the
business firms fails to provide and fails to satisfy the expectation for the products or the services,
which the consumer buy, hence the varied needs of the consumers is crucial for the business
firms for its survival.

39
 STATEMENT OF THE PROBLEM

To Study and analyse on the Perception and Expectations of Consumers with regard to Nandini
Milk and its Products in KOMUL.

In this era of competitive business, the business firms are to be specialized in the various
offerings in the form of products/services, which are to be successfully sold in the market,
therefore the firms need to be designed there offerings with the consumer perception and
expectation of the society which can best satisfy the current and potential consumers, hence the
study focused on findings of its bottlenecks and to analyze weather the business firm is satisfying
the consumer needs are not? Are the consumers perception towards the products provided by
KMF are favorable? and How best the consumer perceptions favorably brought to the attention
of the business firm? Therefore the research is being conducted to answer the above
questions/problems and suggest the best possible means of route to succeed.

 OBJECTIVES OF THE STUDY

 To study on the komul nandini products and its marketing strategies at kolar.

 To ascertain the consumer expectation regarding the milk and its products.

 To analyse the prospect of opening Nandini outlets in and around the Kolar town
premises.

 To seek suggestions and opinions from consumers regarding the improvements to be


made for the better sale of Nandini products.

40
OPERATIONAL DEFINITION

a) Marketing

The American Marketing Association defines marketing as “the process of planning and
executing the conception, pricing, promotion and distribution of ideas, goods and services to
create exchanges that satisfy individuals and organizational objectives”.

Paul Mazur defined marketing as “the creation and delivery of a standard of living to society”

b) Perception

Perception is described as a person’s view of reality. Every person perceives the world and
approaches the life problem differently. Perception is one of the most important psychological
factors affecting the human buying behavior, because perception is the way an individual
experiences the situation.

Perception is the process through which the information from outside environment is selected,
received, organized and interpreted to make it meaningful.

The Perception Process

FIGURE - I

41
 SCOPE OF THE STUDY
The study is confined for Kolar district that is places like Bangarpet, KGF, Kolar and
Malur only. The study is based on primary and secondary data collected from the responses of
consumers, dealers, text books and employees of KOMUL.

The study focuses attention mainly on the consumer perception and expectations with regards to
the Nandini milk and its products produced by Kolar Milk Union Limited.

 METHODOLOGY

Descriptive research is the methodology used to conduct the research on the current
business problem.

Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how...

In short descriptive research deals with everything that can be counted and studied. But
there are always restrictions to that. Your research must have an impact to the lives of the
people around you.

SOURCES OF DATA

Data collection is a key marketing research. The design of the data collection is the back
bone of the research design. Normally the sources of the data are classified in two types

a) Primary data

b) Secondary data

42
a) Primary Data

The primary data are the first hand data collected from the filed and therefore it consists of
original information gathered for a specific purpose. It is relatively expensive, laborious and time
consuming, but it assures a greater accuracy and reliability.

Data was collected by preparing questionnaires, which was distributed among consumers to get
their opinion towards the Nandini products, in this study the more importance has been given to
primary data then secondary data because primary data is more reliable.

b) Secondary Data

The secondary data is collected from text books, annual reports of the company, company
prospectus, published books and project reports of other research who would have collected for
various other purposes, therefore it may not be totally reliable. It is less expensive and involves
less time and labour than the collection of primary data.

 SAMPLE SIZE
Collection of the data was made from dealers of the KOMUL and from its consumers. The
sample size consists of 100 respondents residing in Kolar, Bangarpet, KGF and Malur.

A few people or a unit of population called as sample size was taken to obtain representative
sample of the whole universe. The chosen sample size was 100 respondents. The sampling units
consisted of people who consume Nandini products; those were the only eligible candidates for
interview.

A simple random technique was resorted to with personal administered questionnaire to each
individual as only to the people who regularly purchase Nandini products in position to give a
feed back based on their experience.

43
 SAMPLING TECHNIQUE

Sampling technique used is Random Sampling where every one has an equal opportunity
of being selected as a sample unit.

 LIMITATION OF THE STUDY

 The study relates to komul of kolar, that is it cant give a generalized picture.

 Baised information from respondents.

44
CHAPTER-VIII

DATA ANALYSIS AND INTERPRETATION

INTRODUCTION

The data was collected from 100 respondents who are consuming Nandini milk products. A set
of questionnaires were firstly issued to 10 respondents as a pilot study in order to know whether
the set objectives of the study are fulfilled, then later the verified questionnaires were issued to
100 respondents and thus analysis made is based on that aspect.

Analysis acts as the basis for suggestions, recommendations, and conclusion for the problem
worked out during the research study.

Classification and Tabulation of Data

Classification

Classification of raw data was done so as to reduce large volume to homogenous groups and so
as to arrive at meaningful relationship. This fact necessitates classification of data, which of
common characteristics are placed in one class and this way the entire data got divided into a
number of groups or classes. By this method several handed response are reduced to five to six
appropriate categories containing critical information needed for analysis.

The tabulation analysis and interpretation of data is done here completely on the basis of
fieldwork. The field consists of the answers got from the questionnaire.

45
Tabulation

When a mass of data has been assembled it becomes necessary to arrange the same in some kind
of concise logical order. This procedure is referred to as tabulation. Thus tabulation is the
process of summarizing raw data and displaying the same incompact form (That is in the form of
statistical tables) for further analysis, in a broader sense, tabulation is an orderly arrangement of
data in columns and rows.

ANALYSIS AND INTERPRETATION OF DATA

To study the consumer perception and expectations regarding ‘KOMUL’ products, questionnaire
was prepared and views obtained from the respondent’s data were summarized.

In order to extract meaningful information from the data collected the data analysis is carried out
the data analyzed is vital step in the research process. The data are first edited, coded and
tabulated for the purpose of association of difference between the various present in the research.

I visited the local areas of Kolar District to contact respondents which included consumers like
person doing business, education etc., so that I could gather the best possible and probable
information required to meet the objectives of my study.

46
TABLE –1

TABLE SHOWING THE LOCATION OF RESPONDENTS

PLACE NO. OF RESPONDENTS PERCENTAGE


BANGARPET 22 22
KGF 20 20
KOLAR 39 39
MALUR 19 19
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE LOCATION OF RESPONDENTS

GRAPH-1

RESPONDENTS FROM DIFFERENT


LOCATIONS
50
40
30
20
10
0
BANGARPET KGF KOLAR MALUR

Source: Table 1

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini milk and
its products. 22percent respondents are from Bangarpet, 20percent respondents are from FGF,
39percent are from Kolar and remaining 19percent respondents are from Malur.

Therefore majority of respondent’s are located in Kolar region.

47
TABLE – 2

TABLE SHOWING THE GENDER OF RESPONDENTS

GENDER NO. OF RESPONDENTS PERCENTAGE

MALE 56 56

FEMALE 44 44

TOTAL 100 100

Source: Primary data

GRAPH SHOWING THE GENDER GROUP OF THE RESPONDENTS

GRAPH-2

CLASSIFICATIONS OF GENDERS

MALE
FEMALE

Source: Table 2

Analysis and Interpretation

The above analysis shows that more percentage of respondents are male i.e., 56percent and the
remaining 46percent of respondents are females.

48
TABLE – 3

TABLE SHOWING THE AGE GROUP OF THE RESPONDENTS

AGE GROUP NO. OF RESPONDENTS PERCENTAGE

BELOW 25 22 22

25 – 35 30 30

35 – 50 36 36

ABOVE 50 12 12

TOTAL 100 100

Source: Primary data

GRAPH SHOWING THE AGE GROUP OF THE RESPONDENTS

GRAPH-3

AGE GROUP OF RESPONDENTS

BELOW 25
25 – 35
35 – 50
ABOVE 50

Source: Table 3

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini milk and
its products. 22percent respondents are in the age group of below 25 years, 30percent
respondents are in the age group of 25-35 years, 36percent are in the age group of 35-50 years
and remaining12percent in the age group of 50 and above.

Therefore majority of respondent’s age group is between 35-50 years.

49
TABLE – 4

TABLE SHOWING THE QUALIFICATION OF THE RESPONDENTS

QUALIFICATION NO. OF RESPONDENTS PERCENTAGE

METRIC OR BELOW 19 19

UNDER GRADUATE 32 32

GRADUATE 35 35

POST GRADUATE 14 14

TOTAL 100 100

Source: Primary data

GRAPH SHOWING THE QUALIFICATIONS OF THE RERESPONDENTS

GRAPH – 4

QUALIFICATION OF RESPONDENTS

METRIC OR BELOW
UNDER GRADUATE
GRADUATE
POST GRADUATE

Source: Table 4

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini milk and
its products, 19percent of the respondent’s qualification is Metric/below metric, 32percent
respondents are Under Graduates, 35percent respondents are Graduates and rest 14percent
respondents are Post Graduates.

50
TABLE – 5

TABLE SHOWING THE FAMILY INCOME OF THE RESPONDENT (MONTHLY)

INCOME NO. OF RESPONDENTS PERCENTAGE


BELOW 5000 15 15
5000 – 10000 42 42
10000 – 20000 34 34
ABOVE 20000 9 9
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE MONTHLY INCOME OF THE RESPONDENTS

GRAPH– 5

MONTHLY INCOME OF RESPONDENTS

50

40

30

20

10

0
BELOW 5000 5000 – 10000 10000 – 20000 ABOVE 20000

Source: Table 5

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini milk and
its products, 15percent of respondents monthly income is below 5000, 42percent of respondents’
monthly income are between 5000-10000, 34percent of respondents monthly income are 10000-
20000 and remaining 9percent of respondents monthly income is above 20000.

51
TABLE – 6

TABLE SHOWING THE OCCUPATION OF THE RESPONDENTS

OCCUPATION NO. OF RESPONDENTS PERCENTAGE


SELF EMPLOYED 20 20
EMPLOYED 31 31
HOUSE WIFE 23 23
STUDENT 26 26
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE OCCUPATION OF TH RESPONDENTS

GRAPH – 6

OCCUPATIONS OF RESPONDENTS

STUDENT

HOUSE WIFE

EMPLOYED

SELF EMPLOYED

0 5 10 15 20 25 30 35

Source: Table 6

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini milk and
its products, 20percent of respondents are self employed, 31percent of respondents are
employed, 23percent of respondents are house wife and rest 26percent of respondents are
students.

52
TABLE – 7

TABLE SHOWING THE PERIOD OF USAGE OF MILK PRODUCTS BY THE


RESPONDENTS

PERIOD OF USAGE NO. OF RESPONDENTS PERCENTAGE


PAST 6 MONTHS 12 12
PAST 2 YEARS 38 38
PAST 5 YEARS 29 29
PAST 10 YEARS 21 21
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE PERIOD OF USAGE OF MILK PRODUCTS BY THE


RESPONDENTS

GRAPH – 7

PERIOD OF USAGE OF RESPONDENTS

PAST 6 MONTHS
PAST 2 YEARS
PAST 5 YEARS
PAST 10 YEARS

Source: Table 7

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 12percent of respondents were using Nandini milk products from past 6 months,
38percent of respondents were using milk products from past 2 years, 29percent percent of
respondents were using milk products from past 5 years and 21percent are using it from past 10
years.

53
TABLE – 8

TABLE SHOWING THE REASONS OF RESPONDENT FOR BUYING NANDINI


PRODUCTS

REASON NO. OF RESPONDENTS PERCENTAGE


IT HAS GOOD QUALITY 42 42
REASONABLE PRICE 12 12
IT HAS GOOD TASTE 18 18
EASILY AVAILABLE 16 16
IT CAN BE STORED 12 12
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE REASONS OF RESPONDENT FOR BUYING NANDINI


PRODUCTS

GRAPH –8

REASONS OF RESPONDENT FOR BUYING NANDINI


PRODUCTS

IT HAS GOOD QUALITY


REASONABLE PRICE
IT HAS GOOD TASTE
EASILY AVAILABLE
IT CAN BE STORED

Source: Table 8

Analysis and Interpretation: The above analysis shows that out of the total number of
respondents who use Nandini Milk products, 42percent of the respondents use Nandini products
because of its good quality, 12percent of respondents use it because of its reasonable price,
18percent of them use it because of its good taste, 16percent of them use it because it is available
easily and rest 12percent use it because it can be stored.

54
TABLE – 9

TABLE SHOWING REACTION OF THE RESPONDENTS IF THE CHOICE OF THE


MILK IS NOT AVAILABLE IN THE NEAR SHOP

REACTION NO. OF RESPONDENTS PERCENTAGE

Buy another brand of milk 62 62

Go to another shop 38 38

Total 100 100

Source: Primary data

GRAPH SHOWING REACTION OF THE RESPONDNETS IF THE CHOICE OF THE


MILK IS NOT AVAILABLE IN THE NEAR SHOP

GRAPH– 9

REACTION OF RESPONDENTS IF NANDINI MILK IS


NOT AVAILABLE IN NEAR SHOP

Buy another brand of milk


Go to another shop

Source: Table 9

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 62percent of the respondents buy another brand of milk and rest 38percent of
respondents go to another shop if the Nandini brand product is not available in near shop.

55
TABLE – 10

TABLE SHOWING THE RESPONDENT AWARENESS OF THE NANDINI


PRODUCTS

Product No. Of Respondents No. of Respondents percentage


aware of
Full Cream Milk 100 59 59
Gulab Jamoon Mix 100 79 79
Flavored Milk 100 80 80
Ghee 100 100 100
Badam Powder 100 67 67
Ice Cream 100 12 12
Toned Milk 100 100 100
Butter Milk 100 100 100
Curds 100 100 100
Butter 100 100 100
Mysore Pak 100 79 79
Peda 100 68 68
Source: Primary data

56
GRAPH SHOWING THE RESPONDENT AWARENESS OF THE NANDINI
PRODUCTS

GRAPH– 10

Source: Table 10

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 100percent of respondents are aware of these products namely ghee, toned milk, butter
milk, curds and butter produced by KOMUL, 80percent of them are aware of flavored milk,
79percent of them are aware of gulab jamoon mix and mysore pak, 68percent of them are aware
of peda, 67percent of them are aware of badam powder, 59percent of them are aware of full
cream milk and only 12percent of respondents are aware of ice creams produced by KOMUL.

57
TABLE - 11

TABLE SHOWING THE NECESSARY OF ADVERTISEMENT FOR NANDINI


PRODUCTS

NEED FOR ADVERTISING NO. OF RESPONDENTS PERCENTAGE


YES 76 76
NO 24 24
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE NECESSARY OF ADVERTISEMENT FOR NANDINI


PRODUCTS

GRAPH -11

RESPONDENTS SHOWING ADVERTISING IS ESSENTIAL


80
70
60
50
40
30
20
10
0
YES NO

Source: Table 11

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 76percent of respondents say there is a need of advertising for Nandini milk products
and only 24percent of respondents say advertising is not necessary for Nandini milk products.

58
TABLE – 12

TABLE SHOWING ADVERTISING MEDIA PREFERRED BY THE RESPONDENTS

MEDIA NO. OF RESPONDENTS PERCENTAGE


LOCAL MAGAZINES 8 10.53
PAMPHLETS 4 5.26
NEWS PAPER 17 22.37
TELEVISION 38 50
RADIO/FM 6 7.9
POSTERS 3 3.94
TOTAL 76 100
Source: Primary data

GRAPH SHOWING ADVERTISING MEDIA PREFERRED BY THE RESPONDENTS

GRAPH -12

MEDIA OF ADVERTISING

LOCAL MAGAZINES
PAMPHLETS
NEWS PAPER

Source: Table 12

Analysis and Interpretation

The above analysis shows that out of the total number of respondents, who use Nandini Milk
products, 8 respondents prefer local magazines for advertising Nandini milk products, 4
respondents prefer pamphlets, 17 respondents prefer news paper, 38 respondents prefer
television, 6 respondents prefer radio/fm and rest 3 respondents prefer posters for advertising
Nandini milk products.

59
TABLE – 13

TABLE SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE PRICE OF


NANDINI PRODUCTS

PRICE NO. OF RESPONDENTS PERCENTAGE


COSTLY 28 28
REASONABLE 49 49
CHEAP 23 23
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE PRICE OF


NANDINI PRODUCTS

GRAPH - 13

ATTITUDE TOWARDS THE PRICE OF NANDINI


PRODUCTS

COSTLY
REASONABLE
CHEAP

Source: Table 13

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 28percent of the respondents do believe that the price of Nandini products are costly,
49percent of respondents say it is reasonable and rest 23percent feel it is cheaper.

60
TABLE – 14

TABLE SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE QUALITY OF


NANDINI PRODUCTS

QUALITY NO. OF RESPONDENTS PERCENTAGE


GOOD 46 46
SATISFACTORY 38 38
POOR 16 16
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE QUALITY OF


NANDINI PRODUCTS

GRAPH -14

ATTITUDE TOWARDS THE QUALITY OF NANDINI


PRODUCTS

POOR 16

SATISFACTORY 38

GOOD 46

0 5 10 15 20 25 30 35 40 45 50

Source: Table 14

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 46percent of the respondents feel it has good quality, 38percent of respondents say the
quality level is satisfactory and rest 16percent respondents feel it is of poor quality.

61
TABLE – 15

TABLE SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE PACKAGE OF


NANDINI PRODUCTS

PACKAGE NO. OF RESPONDENTS PERCENTAGE


GOOD 38 38

SATISFACTORY 47 47
POOR 15 15
TOTAL 100 100

Source: Primary data

GRAPH SHOWING THE RESPONDENTS ATTITUDE TOWARDS THE PACKAGE


OF NANDINI PRODUCTS

GRAPH – 15

ATTITUDE TOWARDS THE PACKAGE OF NANDINI


PRODUCTS

15
GOOD
38
SATISFACTORY
POOR
47

Source: Table 15

Analysis and Iterpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 38percent of the respondents attitude towards package are good were as 47percent of
respondents feel it is of satisfactory level and rest 15percent respondents feel it is poor.

62
TABLE – 16

TABLE SHOWING THE RATE GIVEN BY THE RESPONDENTS FOR KOMUL IN


RENDERING OF PRODUCT

RATE NO. OF RESPONDENTS PERCENTAGE


EXCELLENT 16 16
GOOD 32 32
SATISFACTORY 35 35
POOR 17 17
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE RATE GIVEN BY THE RESPONDENTS FOR KOMUL IN


RENDERING OF PRODUCT

GRAPH - 16

RATE GIVEN BY THE RESPONDENTS FOR KOMUL


IN RENDERING OF PRODUCT
40
30
20
10
0
EXCELLENT GOOD SATISFACTORY POOR

Source: Table 16

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 16percent of respondents rated it has a excellent, 32percent respondents say it is good,
35percent respondents feel it is at satisfactory level and 17percent respondents say it is poor.

63
TABLE – 17

TABLE SHOWING RESPONDENT AWARENESS OF NANDINI COMPETITORS

COMPETITORS NO. OF RESPONDENTS PERCENTAGE

YES 74 74

NO 26 26

TOTAL 100 100

Source: Primary data

GRAPH SHOWING RESPONDENT AWARENESS OF NANDINI COMPETITORS

GRAPH – 17

RESPONDENT AWARENESS OF NANDINI


COMPETITORS
80
70
60
50
40
74
30
20
10 26

0
YES NO

Source: Table 17

Analysis and Interpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 74percent of respondents are aware of its competitors and 26percent of respondents are
not aware its competitors.

64
TABLE – 18

TABLE SHOWING THE NEAREST COMPETITOR OF NANDINI PRODUCTS


PREFERRED BY RESPONDENTS

COMPETITORS NO. OF RESPONDENTS PERCENTAGE


HERITAGE 31 31
SWASTIK 5 5
TIRUMALA 11 11
AROGYA 42 42
KCA 9 9
SHRUTHI 2 2
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE NEAREST COMPETITOR OF NANDINI PRODUCTS


PREFERRED BY RESPONDENTS

GRAPH – 18

NEAREST COMPETITOR OF NANDINI PRODUCTS


HERITAGE
42 SWASTIK
11 9 TIRUMALA
11
31 2 AROGYA
5
KCA

Source: Table 18

Analysis and Iterpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 31 respondents say Heritage is the nearest competitor for Nandini, 5 respondents say
Swastik, 11 respondents say Tirumala, 42 respondents say Arogya, 9 respondents say KCA and 2
respondent say Shruthi is the nearest competitor to Nandini.

65
TABLE – 19

TABLE SHOWING THE POSITION OF NANDINI PRODUCTS WHEN COMPARED


TO ITS COMPETITORS

STANDS FOR NO. OF RESPONDENTS PERCENTAGE

HYGIENIC and QUALITY 34 34

POPULAR BRAND 20 20

DIVERSIFIED PRODUCTS 35 35

GOOD PRICING 11 11

TOTAL 100 100

Source: Primary data

66
GRAPH SHOWING THE POSITION OF NANDINI PRODUCTS WHEN COMPARED
TO ITS COMPETITORS

GRAPH – 19

100
90
80
70
60
50
40 TOTAL
30 GOOD PRICING
20 DIVERSIFIED PRODUCTS
10 POPULAR BRAND
0
HYGIENIC & QUALITY
S
ND ENT E
AG
RES
PO
R CENT
OF PE
.
NO

HYGIENIC & QUALITY POPULAR BRAND DIVERSIFIED PRODUCTS


GOOD PRICING TOTAL

Source: Table 19

Analysis and Iterpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 34percent respondents say Nandini products are hygienic and quality when compared
to its competitors products, 20percent respondents say it is a popular brand, 35percent
respondents say it has a diversified products and 11percent respondents it has good pricing
strategy.

67
TABLE – 20

TABLE SHOWING THE RESPONDENTS PREFERENCE FOR INCREASING THE


SALES OF NANDINI PRODUCTS

PREFERENCE NO. OF RESPONDENTS PERCENTAGE


DECREASE IN PRICE 36 36
INCREASE IN PRICE 19 19
OPENING RETAIL OUTLETS 45 45
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE RESPONDENTS PREFERENCE FOR INCREASING THE


SALES OF NANDINI PRODUCTS

GRAPH – 20

INCREASING THE SALES OF NANDINI PRODUCTS

DECREASE IN PRICE
INCREASE IN PRICE
OPENING RETAIL OUTLETS

Source: Table 20

Analysis and Iterpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 36percent of respondents suggests to decrease the price to increase the sales of Nandini
milk products, 19percent respondents suggests to increase the price and 45percent of the
respondents suggests to open a retail outlets.

68
TABLE – 21

TABLE SHOWING THE RESPONDENTS OPINION REGARDING OPENING A


RETAIL OUTLET IN THE REGION OF KOLAR DISTRICT

OPINION NO. OF RESPONDENTS PERCENTAGE


EXCELLENT 38 38
GOOD 45 45
CANT SAY 17 17
TOTAL 100 100
Source: Primary data

GRAPH SHOWING THE RESPONDENTS OPINION REGARDING OPENING A


RETAIL OUTLET IN THE REGION OF KOLAR DISTRICT

GRAPH –21

OPINION REGARDING OPENING A RETAIL OUTLET


50
45
40 38
30

20
17
10

0
EXCELLENT GOOD CANT SAY

Source: Table 21

Analysis and Iterpretation

The above analysis shows that out of the total number of respondents who use Nandini Milk
products, 38percent of the respondents say excellent for opening a retail outlet in the region of
Kolar district, 45percent of respondents say good and rest 19percent of respondents are not sure
about it.

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CHAPTER-IX

FINDINGS, SUGGESTIONS and RECOMMENDATIONS, CONCLUSION

a) FINDINGS

 Out of the 100 consumers interviewed, 36 percent of the respondents were in the
age of 35-50 years and they are graduates and 42 percent respondents were in the
income group between Rs. 5000-10000.
 49 percent of consumers’ attitude towards price of “NANDINI” milk is reasonable,
and 46 percent people say quality and freshness of “NANDINI MILK” is good.
 From the survey, NANDINI Brand is the fastest moving brand in the market
followed by Heritage, Swastik, Gold field etc.
 Respondents indicated that, consumers giving preference for freshness and quality,
not for price only some of the consumers giving more importance to price.
 When we compared to other brand in the market (i.e., Swastik, Heritage, Gold field
etc.,) more percentage of consumers prefer “NANDINI” Brand because its
diversified products and hygienic and quality
 45 percent of the consumers suggested opening retail outlets in and around Kolar
district to increase the sales of Nandini milk products.
 35 percent of the respondent has ranked KOMUL as a satisfactory in rendering the
products to its consumer.
 Respondents indicated that, the package of the Nandini product is at satisfactory
level.
 74 percent of the respondents feel that there is a requirement for advertisement for
Nandini milk products and 38 percent of them suggested television is the best media
to advertise.
 42 percent of the respondents are aware of the competitive brands of Nandini milk
products and the feel Arogya is the nearest competitor.
 45 percent of the respondent’s opinion regarding opening a Nandini outlet in the
region of Kolar district will be good.

70
b) SUGGESTIONS and RECOMMENDATIONS

1. Company should encourage opening more Nandini outlets in and around Kolar district to
boost the sales of the Nandini milk products.
2. Many products like ice creams, badam powder, gulab jamoon mix, full cream milk, etc, is
known to only few respondents so it is suggested to advertise these products so the consumer
come forward to buy these products.
3. Company should provide gift schemes to customers as well as retailers during some special
festivals etc., so it can be possible to remove the other brands in the market.
4. Company should give more commission to retailers compares to other competitors in the
market (i.e., Heritage, Swastik, Goldfield) than, retailers will give more concentration on
selling “Nandini” products.
5. Company must improve the quality of the product and quality of packing, through quality of
packing leakages should be avoided and also improve the sales.
6. Advertisement should be improved in the areas of Malur, K.G.F, Bangarpet and other places
of Kolar District. So, customers are pursuing more. This will help to create a better brand
image and improve its market share.
7. Company must reduce the price if Good life milk is very costly so middle class people are
not forward to purchase Good life milk, if reduce the price; company will increase its
turnover in all the areas.
8. Company should improve the taste and fragrance of Ghee when compared to other Ghee
Brands.
9. For increasing sale of Nandini Product Company must introduce some unique and new
feature in the product and also give new benefits to existing retailers and also for the new
retailers.

71
c) CONCLUSION

Our society consists of heterogeneous people, their value, beliefs attitudes are different from one
another. Some people will give preference for quality and freshness. Some will give preference
for availability, some will give preference only for quantity and thickness of milk the company
should study the attitude of consumers and accordingly should satisfy the consumers, as per as
possible, it should give importance for quality, freshness and price of the milk and try to satisfy
all the category of people. But it is not possible to satisfy the consumers only through the
company but retailers should also co-operate with the company and the consumers but even
though the company takes so many measures then it is also not possible to give 100percent of
satisfaction to the consumers.

1. At present Nandini Milk and Milk products is available in convenient packing of 250grms,
500grms. 1-litre capacity. The pricing policy adopted by the company is cost plus profit
method. They are promoting the product through Hand bills and Neon signboards.
Distribution Network consists of door-to-door delivery and through retailer’s shops. At
present the area covered is Kolar, Tirupati, Palmnair, Chittur and Maharastra.
2. Majority of the respondents were aware of Nandini milk and its product but they don’t prefer
it because of lack of publicity and it is not available in all the places. Those who use Nandini
milk and its product feel that it is almost good. But they were not happy with the packing.
Most of them feel that the price is moderate and more publicity is required.

72