Pocket Milk

A STUDY ON THE LEVEL OF SATISFACTION OF CONSUMERS IN THE
PERI-URBAN AREA OF TIRUCHIRAPPALLI ON THE MARKETING MIX

FOR PACKET MILK
THESIS SUBMITTED TO THE

BHARATHIDASAN UNIVERSITY,TIRUCHIRAPPALLI
FOR THE AWARD OF THE DEGREE OF
DOCTOR OF PHILOSOPHY IN BUSINESS ADMINISTRATION
BY
T.REVATHI
UNDER THE GUIDANCE OF

DR. I. FRANCIS GNANASEKAR
M.Com., M.B.A., B.Ed., M.Phil., Ph.D.,
READER AND HEAD
DEPARTMENT OF COMMERCE
ST. JOSEPH‟S COLLEGE (AUTONOMOUS)
TIRUCHIRAPPALLI 620 002.
POST GRADUATE AND RESEARCH DEPARTMENT OF COMMERCE

ST. JOSEPH‟S COLLEGE (AUTONOMOUS)
Nationally Reaccredited by NAAC with A+
College with Potential for Excellence
Tiruchirappalli – 620 002.
Tamil Nadu, India.
JUNE,2009
CERTIFICATE
Dr. I. Francis Gnansekar,

M.Com., M.B.A., B.Ed., M.Phil., Ph.D.,
Reader and Head,
PG and Research Department of Commerce,
St. Joseph‟s College (Autonomous),
Tiruchirappalli 620 002.
This is to certify that the thesis “A study on the level of satisfaction of consumers
in the peri-urban area of Tiruchirappalli on the marketing mix for packet milk”
submitted to Bharathidasan University, Tiruchirappalli is a bonafide record of the
research work done by Mrs.T.Revathi, during April 2004 to June 2009 under my
guidance. Further it is certified that this record has not previously formed the basis for
the award to the candidate of any degree, diploma, associateship, fellowship or any other
similar title and that the thesis is an independent work on the part of the candidate.
Station :Trichy
Date :
(Dr. I. Francis Gnanasekar)

Research Advisor.
ACKNOWLEDGEMENT
I take this opportunity to express my deep sense of gratitude and sincere thanks to
my research guide Dr. I. Francis Gnanasekar, M.Com., M.B.A., B.Ed., M.Phil., Ph.D.,
Reader and Head, Department of Commerce, St. Joseph‟s College (Autonomous),
Tiruchirappalli, for his constant encouragement, inspiring guidance and valuable
suggestions, which led to the successful completion of this work.
I am extremely thankful to the Rev. Dr. R. Rajarathinam SJ, Principal, St.
Joseph‟s College (Autonomous), Tiruchirappalli, for his permission and moral support
for the successful completion of this endeavor.
I am very much grateful to Dr. L.J. Charles, Department of Commerce,
St. Joseph‟s College (Autonomous), Tiruchirappalli, and Dr. E. Mubarak Ali, Reader
in Commerce, Jamal Mohamed College, Tiruchirappalli, for their inspiring advice and
valuable suggestions, as a Doctoral Committee Members.
I am indebted to a great extent to Dr. G. Stephen Vincent, M.Sc., M.Phil., Ph.D.,
Reader, Department of Statistics, St. Joseph‟s College (Autonomous),
Tiruchirappalli, for his guidance in the technical part of the research work.
I am very much grateful to Dr. N. Shaik Mohamed, M.Com., M.Phil., Ph.D.,
B.Ed., PGDPM., PGDJMC., PGDEE., Reader and Research Advisor, P.G. and
Research Department of Commerce, Jamal Mohamed College, Tiruchirappalli, for
having introduced me to Dr. I. Francis Gnanasekar in 2003.
I respectfully thank Dr. R.Krishnaraj, Professor, Department of Management
Studies, Saranathan College of Engineering, Tiruchirappalli, the greatest task in this
research is the statistical area, where I was given proper guidance by him with the usage of
SPSS-14 package in the research work. This has really helped me to bring out an elaborate
analysis and resultant interpretation.
I am thankful to my family members for their love, affection and moral support.
I convey my sincere thanks to Women-respondents, Retailers, Distributors and
Sales representatives for having spared their valuable time, to contribute for this study.
I am thankful to library authorities of Bharathidasan University, St. Joseph‟s
College (Autonomous), Madurai Kamaraj University, Madurai, Bharathiyar University,
Coimbatore, and Veterinary College and Research Institute, Namakkal, who have
permitted me to refer the journals, magazines and books.
I gratefully remember the invisible individuals, who have worked behind the
screen, if not this thesis would have been a dream. I thank them all.
Above all I thank the Almighty who has been the sole source of spirit and strength
to me, in my entire endeavor in this venture.
Date:
T.REVATHI
(Research Scholar)
CONTENTS
CHAPTER TITLE PAGE NO.
I. INTRODUCTION 1
II. REVIEW OF LITERATURE 22
III. PROFILE OF THE STUDY AREA AND DAIRY
INDUSTRY 134
IV. ANALYSIS AND INTERPRETATION 155
V. FINDINGS, CONCLUSION AND SUGGESTIONS

222
APPENDIX
I. BIBLIOGRAPHY
II. ABBREVIATION
III. QUESTIONNAIRE
IV. PAPERS PUBLICATION

LIST OF TABLES
TABLE NO. TITLE PAGE NO.

CLASSIFICATION OF THE RESPONDENTS OF
1. TIRUCHIRAPALLI CORPORATION ACCORDING TO 156
THEIR ZONE LOCATION
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR
2. AGE 157
LEVEL OF EDUCATION OF THE RESPONDENTS

3. 158
CLASSIFICATION OF THE RESPONDENTS ACCORDING

4. TO THE MONTHLY INCOME OF THE HOUSEHOLD 159
OCCUPATION OF THE RESPONDENTS

5. 160
TYPE OF EMPLOYMENT OF THE RESPONDENTS

6. 161
TYPE OF FAMILY OF THE RESPONDENTS

7. 162
FOOD HABIT OF THE RESPONDENTS

8. 163

9. TO THE EXPENDITURE ON MILK PER MONTH 164

TO THE QUANTITY OF PACKETMILK USED IN THEIR
10. 165
HOUSEHOLD

11. TO TYPE OF PACKETMILK PURCHASED 166
CLASSIFICATION OF THE RESPONDENTS ON THE BASIS

OF OPINION ON VARIOUS FEATURES OF PACKET
12. 167
MILK

13. TO THE CHOICE OF BRANDED PACKET MILK 171
DISTRIBUTION OF THE RESPONDENTS ACCORDING

14. TO THE BRAND SATISFACTION OF PACKETMILK 172

15. TO THE ALTERNATE CHOICE OF BRANDED 173
PACKETMILK
RESPONDENTS CHOICE OF PACKET MILK WITH
16. RESPECT TO MARKETING MIX PRACTICES 174

17. 176
TO THE NUMBER OF PACKET MILK BRAND USED
CLASSIFICATION OF THE RESPONDENTS, ACCORDING
18. TO THE SATISFACTION ON SACHET PACKING 177
CLASSIFICATION OF THE RESPONDENTS ON THE

19. BASIS OF LOOKING THE DATE OF MILK PACKING 178

20. OF FREQUENCY OF LOOKING THE DATE OF MILK 179
PACKING
CLASSIFICATION OF THE RESPONDENTS ON THE
21. BASIS OF PROBLEM OF PACKET MILK 180

22. OF PREFERENCE OF PACKET MILK IN LESS THAN 250 ml 181
SACHET
23. TO THE FREQUENCY OF PURCHASE OF PACKET MILK 182
IN LESS THAN 250 ml SACHET
24. TO THE QUANTITY OF PREFERENCE OF PACKET MILK 183
EXPECTATION ON IDEAL PACKING METHOD
25. 184

TO THE AWARENESS OF NON – DEGRADABLE NATURE
26. 185
OF PLASTIC

27. TO THE SOURCE OF AWARENESS OF NON – 186
DEGRADABLE NATURE OF PLASTIC
28. TO THE METHOD OF DISPOSAL OF SACHET BAGS 187
FACTOR ANALYSIS – OPINION ON THE BASIS OF

PRODUCT FEATURE
29. 188
RELATED COMPONENT MATRIX AS TWO COMPONENTS
EXTRACTED
CHI-SQUARE TEST – CROSS TABULATION-EDUCATIONAL
30. QUALIFICATION OF THE RESPONDENTS AND THEIR 190
OPINION ON TYPE OF PACKET MILK
CHI-SQUARE TEST – CROSS TABULATION- OCCUPATION
31. OF THE RESPONDENTS AND THEIR OPINION ON 191
HYGIENIC QUALITY OF PACKET MILK
PERCEPTUAL MAP FOR WELL-KNOWN DAIRY
32. PRODUCT 192

33. TO THE PRICE INFLUENCE OF PAKCET MILK 196
OPINION OF THE RESPONDENTS, ON PRICE OF PACKET

34. MILK 197
MANN WHITNEY U TEST – OPINION OF NUCLEAR AND
35. JOINT FAMILY TYPE OF RESPONDENTS ON PRICE OF 198
PACKET MILK
36. TO THE INFLUENCE OF PROMOTIONAL FACTORS IN 199
THEIR DECISION MAKING OF PACKET MILK
37. OF MEDIA OF ADVERTISEMENT 202

38. OF OPINION ON RELEVANCE OF ADVERTISEMENT 203
KENDALL COEFFICIENT OF CONCORDANCE (W) –

39. ASSOCIATION BETWEEN PROMOTIONAL INPUT 204
VARIABLES
KRUSKAL-WALLIS TEST – OPINION OF THE
40. RESPONDENTS IN THE PROMOTIONAL ASPECT OF FREE 205
GIFT
BOX PLOT-DISPERSION OF DIFFERENT OCCUPATION
41. OF THE RESPONDENTS ON THE BASIS OF EXCHANGE 206
OFFER OF PACKET MILK
42. TO THE SOURCE OF MILK SUPPLY 208

43. OF OPINION ON RETAIL DISTRIBUTION SYSTEM OF 209
PACKET MILK
FACTOR ANALYSIS – OPINION ON THE BASIS OF RETAIL
DISTRIBUTION SERVICE FACTOR
44. RELATED COMPONENT MATRIX AS TWO COMPONENTS 212
EXTRACTED
KRUSKAL-WALLIS TEST-OPINION OF THE
45. RESPONDENTS IN THE DISTRIBUTION ASPECT OF HOME 214
DELIVERY SERVICE OF PACKET MILK
PERCEPTION OF THE RESPONDENTS ABOUT
46. UHT – PACKET MILK 215
OPINION OF THE RESPONDENTS TO VARIOUS

47. FEATURES OF UHT – PACKETMILK 216
RESPONDENTS INTEREST TO PURCHASE UHT-PACKET

48. MILK 218
REASON FOR PURCHASE PREFERENCE OF UHT -

49. PACKET MILK 219
FACTOR ANALYSIS – OPINION ON THE BASIS OF

PRODUCT DEVELOPMENT FEATURES
50. 220
RELATED COMPONENT MATRIX AS TWO COMPONENTS
EXTRACTED
LIST OF FIGURES
FIGURE NO. TITLE PAGE NO.
1. STRATIFICATION OF THE UNIVERSE 10
2. STRATA PROPORTION OF SAMPLE 12
3. DAIRY INFRA-STRUCTURE IN INDIA 74
4. DAIRY PLANTS OPERATING IN INDIA 75

RECOMMENDED DAIRY INTAKE OF MILK FOR VARIOUS
5. 105
AGE GROUPS
6. PERCEPTUAL MAP 193
BOX PLOT
7. 207
A STUDY ON THE LEVEL OF SATISFACTON OF CONSUMERS IN
THE PERI-URBAN AREA OF TIRUCHIRAPPALLI ON THE
MARKETING MIX FOR PACKET MILK
ABSTRACT
* Dr. I. Francis Gnanasekar
**T. Revathi
India had the highest milk production of, 84.6 million tonnes in 2001 in the world,
and the organized sector handled about 12.5 per cent of the total milk production which is
about 10.6 million tonnes. It accounts for 15 per cent of world‟s milk production and its
production is growing at the rate of four point five per cent per year as against the world‟s
milk growth rate of one point one per cent per year.
Marketing mix is an important tool used by marketing managers to design the
process of marketing organization. Marketing mix is a blend of decisions to provide a
marketing offer to the selected markets or consumers. The idea behind the development of a
mix is that a certain combination of four Ps will produce greater customer satisfaction than
other blends. As such, marketing mix is used as a strategy in developing marketing planning.
The objectives of the study are to identify the impact of product features of packet
milk on consumers satisfaction, to study the views of the respondents on price of packet
milk, to analyse the promotional factors that influence consumers of packet milk, to
*Reader and Head, Department of Commerce, St. Joseph‟s College(Autonomous),

**Research Scholar, Department of Commerce, St. Joseph‟s College(Autonomous),
identify and analyse the consumers satisfaction on retail distribution system of packet milk
and to study the perspective of consumers on UHT-packet milk.
The most preferred brand of packet milk is Aavin and the second choice of
packet milk is Arokya brand. Many of the respondents have used two brand of packet
milk and they are purchasing packet milk mostly through door delivery and general
stores.
The respondents opinion is good with regard to the service of retail distribution
system. The respondents have the habit of looking the milk date of packing. Many view
that protection as the expected aspects of ideal packing and the knowledge regarding the
non-degradable nature of plastic is very minimum.
Suggestions are recommended to improve the satisfaction of consumers and to
improve marketing mix practices of dairy industry. Supply of milk in the form of toned,
double toned, premium and standardized milk availability on the basis of fat content
should be informed to the consumer. This knowledge is lacking among the consumers. It
should be highlighted through publicity. So that they can purchase milk on the base of
their requirements.
Further, efficient consumer awareness and education programmes, market
promotion activities and effective distribution - channel management with a vast
distribution network to maintain direct relationship with the consumers is essential, as
the dairy products market transit to supply driven situation, the dairy firms has to
make his marketing very effective in all the functional areas. This can help the industry to
gain customer loyalty and above all the demand expansion.

ABBREVIATION
AI Artificial Insemination
AMS Aggregate Measure of Support
AOA Agreement On Agriculture
CAC Codex Alimentarius Commission
DCS Dairy Co-operative Societies
FAO Food and Agriculture Organization
GAAHP Good Agricultural and Animal Husbandary Practices
GATT General Agreement on Tariffs and Trade
GDP Gross Domestic Product
GMP Good Manufacturing Practices
HACCP Hazard Analysis Critical Control Points
IAMFES International Association of Milk, Food and Environmental
Sanitarians
ICMR Indian Council of Medical Research
ICMSF International Commission on Microbiological Specification for Foods
ISO International Standard Organisation
LDCs Least Developed Countries
LLPD Lakh Litres Per Day
MMB Milk Marketing Board
MMPO Milk and Milk Product Order
MNCs Multinational Companies
MPCE Monthly Per Capita Consumer Expenditure

MT Million Tones
NDDB National Dairy Development Board
NMG National Milk Grid
NSSO National Sample Survey Organization
NTB Non-Tariff Barriers
OECD Organization for Economic Co-operation and Development
OF Operation Flood
OIE International Office of Epizootics
QMS Quality Management System
RDA Recommended Dietary Allowance
SMP Skim Milk Powder
SNF Solids-Not-Fat
SPS Sanitary and PhytoSanitary
TBT Technical Barriers to Trade
TCMPF Tamilnadu Co-operative Milk Producers Federation Limited
TQM Total Quantity Management
TRQ Tariff Rate Quota
TS Total Solids
WFP World Food Programme
WHO World Health Organization
WTO World Trade Organization

CHAPTER I
INTRODUCTION
India had the highest milk production of, 84.6 million tonnes in 2001 in the world,
and the organized sector handled about 12.5 per cent of the total milk production which is
about 10.6 million tonnes [Aneja, 2002]. It accounts for 15 per cent of world‟s milk
production and its production is growing at the rate of four point five per cent per year as
against the world‟s milk growth rate of one point one per cent per year [Deepak Jain , 2004].
The liberalization policy of the Government, the entry of private enterprise and
mainly the globalization of the consumers have all led to a basic change from the
dictatorship of the producer to the democracy of the consumer.
The dairy industry in India reached a stage where marketing become the most crucial
factor for growth and viability. Creating an organization structure centered on marketing is
the first step towards the transition from a production (or) sales oriented approach to a
marketing-oriented approach. This is a challenge that should be taken up.
Marketing mix is an important tool used by marketing managers to design the
process of marketing organization. Marketing mix is a blend of decisions to provide a
marketing offer to the selected markets or consumers. The idea behind the development of a
mix is that a certain combination of four Ps will produce greater customer satisfaction than
other blends. As such, marketing mix is used as a strategy in developing marketing planning
[Gupta, 2003].
Definition of Milk
In India, milk usually refers to that from cow or buffalo or a mixture of these two.
However, milk sold without any qualification is taken to be buffalo milk according to the
Prevention of Food Adulteration (PFA) Rules, 1955 [Aneja, 2002].
Milk is defined as the whole, fresh, clean, lacteal secretion obtained by the complete
milking of one or more healthy milch animals, excluding that obtained within 15 days before
(or) five days after calving or such periods as may be necessary to render the milk
practically colostrum- free and containing the minimum prescribed percentages of milk fat
and milk-solids-not-fat [Su kumar de, 1997].
Milk according to the PFA Rules, is the normal mammary secretion derived from the
complete milking of healthy milch animal without either addition there to or extraction there
from. It shall be free from colostrums [Aneja, 2002].
According to United States Health Services, the milk has been defined as “The clean
and fresh lacteal secretion is practically free from colostrums, pathogenic micro organisms
and obtained from healthy cows, properly fed and maintained and excluding that obtained
within fifteen days before and ten days after calving by complete milking and containing not
less than eight point two five per cent solid-not- fat and three point five per cent milk fat
[Jagir Singh, 2005].
Milk drawn from a healthy dairy animal is usually free from any bacteria. It is
“sterile.” However, it must be protected against infection as soon as it leaves the udder.
Microbes, capable of spoiling the milk, are present in the environment. They multiply
rapidly and render milk unsuitable for processing and/or unfit for human consumption.
Bacterial growth in milk can be retarded by refrigeration, thereby slowing down the rate of
its deterioration.
The traditional practice in India of boiling the raw milk within hours of production
before its consumption provides a safety net for minimizing occurrence of microbes.
However, Pasteurization is designed to destroy relatively more heat-resistant
pathogens, namely, mycobacterium tuberculosis and coxiella burnettii [Aneja, 2002].
Milk and Milk Products in Ancient India
The traditional dairy products reflect the intimate relationship that our ancestors
established with the farm and animal wealth. This relationship, continuing even today, links
us with our early ancestors. In ancient India, dairy products had an important bearing on the
socio-cultural life of the people. They were indicators of the wealth and status of people.
Besides, their use in daily rituals, these products were also liberally served to honor guests in
social functions, organized by Kings and Nobility. Some products were also used for
medicinal purposes in the ancient Ayurveda as well as household remedies.
Cattle constituted an integral part of India‟s Vedic culture (1800-600 BC). “Vedic
culture literature is full of references to the milk of the cow”, states Dr.K.T.Achaya in
his classic compilation Indian Food: A Historical Companion. The essence of wealth was
cattle, in demand for providing milk and as draught animals. For the Vedic Aryans, the cow
was the measure of value and was a very precious commodity.”

Recent archaeological excavations at Mehrgarh (placed around 6500 BC), located
about 150 miles to north-west of Mohenjodaro at the foot of the Bolan Pass in Baluchistan,
have revealed signs of domestication of cattle earlier than in other settlements of Western
Asia. “Moreover, there is evidence that cattle were more significant to Mehrgarh‟s
inhabitants than any other large domesticated animals- a cultural trait that has been preserved
over thousands of years down to the present day.” Ashrams and royal establishments had
such large supplies of milk that a sizable surplus was left after meeting the people‟s
requirements. The surplus milk was used for making curd or dahi, butter and ghee, besides
preparing special items like sweets for visiting guests. Special festivals, festivities for
birthdays, victories, so on and religious celebrations of yagna, homa and other sacrificial
rituals necessitated the use of these products. Further that the five products from the cow
singly or in combination are called panchagavya and are necessary to maintain ritual purity
so important to the Hindu. These five products are: milk, curds (dahi), ghee, urine and dung
[Aneja 2002].
Organized Sector
In India, the market milk industry may be said to have started in 1950 to 1951 when
the Central Dairy of Aarey Milk Colony was commissioned and went into stream. The
industry is still in its infancy and barely 12 per cent of our total milk production undergoes
organized handling.
The term „market milk‟ refers to fluid whole milk that is sold to individuals usually
for direct consumption. It excludes milk consumed on the farm and that used for the
manufacture of dairy products [Sukumar de, 1997].

The organized sector retails five categories of milk named pasteurized toned,
standardized milk, full cream milk, double toned milk and UHT-milk
[www.aavinmilk.com].
The highly nutritious and ideal food of the Indian is now marketed in brand names.
Markets are manifested with several brands, each trying to capture its share in the market by
differentiating its product in feature, quality, packing, service and so on.
STATEMENT OF THE PROBLEM
Human life is centered around food, cloth and shelter. Among food products, milk
play an important role and also has its own heritage. We use milk in every walk of our life in
different forms.
Milk is almost an 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. Besides, supplying certain essential fatty acids, it contains the above
nutrients in an easily digestable and assimilable form. All these properties make milk an
important food for pregnant mothers, growing children, adolescents, adults, invalids,
convalescents and patients alike [Sukumar de,1997].
Pasteurization is designed to render milk safe for human consumption and to
improve the keeping quality of the milk by destruction of almost all spoilage organism (85
to 99 per cent).The pasteurized and cooled milk is promptly bottled / packaged. So as to
serve the dual purpose of protecting the milk against contamination, loss, damage or
degradation and helping in the sales and distribution of the milk. The non-branded milk is
being distributed without packing through the conventional chain of vendors using metal
cans in bicycle. The producers of the branded milk opt for modern methods of packing and
distribution.
Although the glass bottle is still the traditional packaging medium for retail milk
distribution, packaging of milk in plastic packets is increasingly being adopted as it is light
in weight, easy to handle, safe, lower distribution costs, tamper-proof and effective carrier
of promotional information.
Marketing mix represents the total marketing programme of a firm. It involves
decisions with regard to product, price, place, and promotion and it serves as the linkage
between a business firm and its customers.
Thus, marketing mix is a blend of decisions in the four Ps. It is a system comprising
the subsystems of price, product, promotion and distribution. These elements of the
marketing mix are interrelated because decisions in one area affect the others. Marketing mix
is a dynamic concept as it keeps on changing with changes in market.
Given this scenario, it becomes necessary to investigate the behaviour of customers
relating to how do the customers make a choice of the product? Are they brand conscious or
not ? How effective are media in wooing the customers? What are the retailing touch points
that drive satisfaction? To what extent, the product features, price, promotional factors and
physical distribution factors have an influence in customer purchasing decision. What is
customer opinion to the convenient, sophisticate product (UHT- packet milk) with advance
features? Do customers prefer to buy the product? If so what factors (variables) which
influence the customers to buy the product?

OBJECTIVES OF THE STUDY
The project has overall objective of studying the level of satisfaction of consumers, in
the peri-urban area of Tiruchirappalli on the marketing mix for packet milk. The following
are the most specific objectives. They are
 to study the personal profile of consumers of packet milk on the peri-urban area of
Tiruchirappalli;
 to identify the impact of product features of packet milk on consumers satisfaction;
 to study the views of the respondents on price of packet milk;
 to analyse the promotional factors that influence consumers of packet milk;
 to identify and analyse the consumers satisfaction on retail distribution system of
packet milk and
 to study the perspective of consumers on UHT-packet milk.
HYPOTHESES
 Occupation of the respondents have no influence on their opinion on hygienic quality
of packet milk.
 Type of family have no significant difference towards their opinion on price
satisfaction of packet milk.
 Educational qualification of the respondents have no significant difference on the
promotional free gift factor of packet milk.
 Monthly income of the respondents have no significant difference on the satisfaction
of home delivery service of packet milk.

PILOT STUDY
The pilot study was conducted in the area of the study covering
a) The female head of the household
b) Retailers of packet milk and
c) Officials of the local authority.
For the purpose of the study, 100 women and 25 retailers were interviewed.
The female head of the household are identified to be the principal shoppers in most
households, and it was observed that they have better knowledge about the milk and milk
products.
Ten brands of packet milk- Aavin, Arokya, Sakthi, Vijay , V.K.A., Chakra, Tamil,
Taste me, Achaya and Komatha were noted to be commonly available in the area of study.
The researcher had many rounds of discussion with the retailers of the selected
brands. It was observed that packet milk is preferred more in the peri-urban area due to non-
availability of service of vendors. More over, storage facility of the milk in the refrigerator is
also responsible for preferring packet milk by the people living in the area.
The researcher had various rounds of talk with the local officials of Tiruchirappalli
Corporation regarding the peri-urban area.

Based on the observation made through the pilot study, the interview schedule was
restructured and refined. The pilot study has been used to obtain the size of the universe and
thereby the size of the sample of this study.
SAMPLING FRAMEWORK
Determination of universe
Tiruchirappalli Corporation, for administrative purpose has been divided into four
blocks namely K.Abishekapuram zone, Srirangam zone, Ponmalai zone and Ariyamangalam
zone.
Peri-urban area is the area in the periphery of the urban area. It is the newly
developing area within and adjacent to the corporation limit. Through a personal discussion
with the officials of Tiruchirappalli Corporation total number of households in the peri-
urban area of all the four blocks was ascertained to be 13,476 as on March 2007. These
13,476 households have been taken to be the universe of this study.
Determination of Strata
The households in the peri-urban area of each block has been made a stratum there
by resulting in four Strata. This has been highlighted in figure 1.

Tiruchirappalli Corporation Total number of households in the peri-urban area
K.Abishekapuram Zone 4414

Srirangam Zone 2613
Ponmalai Zone 4926
Ariyamangalam Zone 1523
Total 13,476
Figure 1. Stratification of the Universe
Determination of the size of the sample
Sampling technique plays an important part in determining the size of the sample.
The universe may be either homogeneous or heterogeneous in nature. If the items of the
universe are homogenous, a small sample can serve the purpose [Kothari, 2004]. The study
is about the consumers level of satisfaction on packet milk. The study group namely the
packet milk users are homogeneous in nature. To make the findings of the study credible
and authentic 450 households have been taken as the size of the sample.
Determination of the proportional allocation of the sample
Kothari [2004], suggests a formula for deciding the proportional allocation under
which the size of the samples from the different strata are kept proportional to the sizes of
the strata. That is, if Pi represents the proportion of population included in stratum i, and n
represents the total sample size, the number of elements selected from stratum i is n.P i.
Samples are selected by using stratified sampling with proportional allocation. Using
proportional allocation method, the size of the sample for each stratum have been decided as
explained in figure 2.
Total number of households in 450 households
Tiruchirappalli Corporation
peri-urban area selected
K.Abishekapuram Zone 4414 147

Srirangam Zone 2613 87
Ponmalai Zone 4926 164
Ariyamangalam Zone 1523 52
Total 13,476 450
Figure 2. Strata proportion of sample
Random Sampling
The information about the total number of households and addresses were collected
from Tiruchirappalli Corporation. Using Tippet‟s random number [Kothari, 2004] the
required number of respondents have been randomly selected from each strata , as
highlighted in figure 2.
Justification for selecting the Respondents
Through the Pilot study it was observed that almost all the households only the
women make the decision on buying packet milk and because of these justification women
in the family have been selected as a respondent of the study.

PRIMARY DATA
An interview schedule was prepared including the relevant questions related to the
topic in consultation with the packet milk retailers. Questions were segregated in six broad
categories. Part I dealing with general profile of the respondents including personal and
demographic data, part II dealing with the buyer‟s level of satisfaction on product features,
part III dealing with the price influence and satisfaction level of the buyer‟s, part IV dealing
with the evaluation of the level of influence of various promotional factors of packet milk,
part V dealing with the retail distribution or physical distribution factors and consumers
satisfaction of packet milk and part VI dealing with the respondents purchase preference of
UHT-packet milk.
SECONDARY DATA
The researcher collected information from various books, journals and published
articles, besides, gathering data from the internet. Further the researcher also had discussions
with the local retailers of various brands of packet milk, Tiruchirappalli. Data had also been
gathered from the department of statistics, Tiruchirappalli.
DATA ANALYSIS - TOOLS USED IN THIS STUDY
A data base was created using Statistical Packages for Social Sciences (SPSS)-Data
Editor with appropriate coding and statistical analysis was carried out. The following tools
were applied to analyse the study.
In phase one, simple frequency tables and cross-tabulation analysis were presented for
all required items.

Box-plot Analysis
In phase two, box-plot analysis was conducted to identify the nature of data, with
reference to marketing mix influencing components, for different occupation of the
respondents. It was non-symmetrical in nature. Appropriate statistical tools were selected
for further analysis.
Factor Analysis
Factor analysis was conducted as a data reduction technique, to analyse the
interrelationships among large number of marketing mix variables and explain these
variables in terms of common underlying dimensions (factors).
Mann-Whitney Test (or U Test)
The non-parametric technique named the Mann-Whitney U test was applied to
test the null hypothesis of whether two groups(male and female respondents) have
identical thinking in terms of prescribing behaviour. Mann-Whitney test is used to
determine whether two independent samples have been drawn from the sample
population. To perform this test, rank the data jointly, taking them as belonging to a
single sample in either an increasing or decreasing order of magnitude. Find the sum of
the ranks assigned to the values of the first sample (and call it R1) and also the sum of the
ranks assigned to the values of the second sample (and call it R2).
Then work out the test statistic i.e., U, which is a measurement of the difference between
the ranked observation of the two samples as under

n1 (n1  1)
U1  n1 . n2   R1
2
n (n  1)
U 2  n1 . n2  2 2  R2
2
n1 , n2 = Sample size in group1 and group 2
R1, R2 = Sum of the ranks assigned to groups 1 and 2 respectively.
[Kothari, 2004].
Kruskal-Wallis Test (or H test)
The Kruskal-Wallis test was utilized to test hypothesis for more than two groups.
Kruskal-Wallis test is used to test the null hypothesis that „k‟ independent random samples
come from identical universes against the alternative hypothesis that the means of these
universes are not equal. In this test, the data are ranked jointly from low to high or high to
low as if they constituted a single sample.
The test statistic is H for this test, which is worked out as under:
2
12 k Rj
H    3  N  1
N  N  1 j 1 nj
k – Number of samples
Rj – Sum of ranks in the j th sample
nj -Size of sample j
N – Total number of observations in all samples. [Kothari, 2004].
Chi-Square Test
The Chi-Square (2) one sample test is an appropriate way to answer the question
of the existence of significant difference
N
(oi  Ei ) 2
x 2

i 1 Ei
O i - Observed number in ith category
E i - Expected number in ith category.
Chi-square test utilized to explain whether or not two attributes are associated. Null
hypothesis is that the two attributes are independent. [Kothari, 2004].
Kendall‟s Coefficient of Concordance
Kendall coefficient of concordance (W) was obtained to understand inter-rater
agreement among independent respondents who rate the stimuli. Kendall‟s coefficient of
concordance, represented by the symbol W, is an important non-parametric measure of
relationship.
It is used for determining the degree of association among several (k) sets of ranking of N
objects or individuals. Kendall‟s coefficient of concordance (W) is considered an
appropriate measure of studying the degree of association among three or more sets of
rankings.
Determine Rj and then obtain the value of s as under:

S
W  S   ( R j  R j )2
1 2
k (N  N )
3
12
K = number of judges; N= number of objects ranked;
1 2 3
k ( N  N ) = maximum possible sum of the squared deviations i.e., the sum s
12
this would occur with perfect agreement among k rankings. [Kothari, 2004].
Perceptual Map
Perceptual Map was plotted on the basis of the right combination of respondents
preferential score and price, to evaluate marketing mix practices of packet milk
companies.
SCOPE OF THE STUDY
This study is much beneficial to packet milk producing companies as it highlights the
marketing mix of packet milk in the peri- urban area of Tiruchirappalli, which is a new
developing concept.
The study has a scope to find out the level of satisfaction of the consumers in the
peri-urban area, which create a new market segmentation in the marketing field. More over
the opinion of the consumers regarding UHT-packet milk will also has a wide scope for the
marketer to concentrate in this new area.
This study will enlighten the economic planners, decision makers, academicians,
social activists, to throw attention to create healthy citizen by knowing their level of
satisfaction of packet milk. The marketer can adopt different marketing mix to find a better
place in the minds of the consumers to market toned packet milk, standardized packet milk,
premium packet milk, double toned packet milk and UHT-packet milk.
This study create a new dimension for the producer and marketer of packet milk to
discharge their corporate social responsibility to the state, government, society and
consumers.
This study may be useful to the health department concern and to the Nutritionals.
LIMITATIONS OF THE STUDY
The constraint of cost and man power forced the scholars to go for sampling instead
of selecting the whole Universe.
The study is based on the primary data collected through the Interview schedule. It
is bestowed with certain limitations which are bound to arise in the primary data collection.
Though extreme efforts have been taken to make the data relevant, reliable and consistent,
the analysis and findings of this study may have the impact of the level of credibility of the
consumers who were the respondents of this study.
The customer satisfaction may differ from individual to individual, time to time and
place to place. So, we cannot generalize that the opinions are permanent.
In spite of the above limitations the researcher has taken pain and effort to achieve
the above objectives of the study.
REPORT PLAN
The report of the study is presented in five chapters, arranged logically as follows:
Chapter I: It clearly visualizes the design and execution of the study. It deals with the
statement of the problem, objectives of the study, hypotheses, methodology, scope of the
study and limitations.

Chapter II: This chapter deals with the review of literature related to the marketing mix
of dairy industry.
Chapter III: This chapter deals with the profile of the study area and profile of dairy
industry.
Chapter IV: This chapter deals with the analysis of primary data, related to the level of
satisfaction of consumers on the marketing mix of the packet milk. Chapter V: Based
on the analysis of data, the researcher presents the findings, conclusion and suggestions
about the study on the level of satisfaction of consumers in the peri-urban area of
Tiruchirappalli on the marketing mix for packet milk.
ENDNOTES
1. Aneja, R.P., Mathu, B.N., Chandran, R.C. and Banerjee, A.K. (2002). Technology of
Indian Milk Products. Dairy India Year Book. Delhi: Dairy India Publication.34.
2. Deepak Jain. (2004). “ Emerging Dairy Countries: The Indian Perspective.” Indian
Dairyman,56(12).37-42.
3. Gupta, C.B and Rajan Nair, N. (2003). Marketing Management. New Delhi:Sultan
Chand and Sons.1.102.
4. Ibid., p. 50.
5. Sukumar De. (1980). Outlines of Dairy Technology. Chennai: Delhi Oxford University
Press.2.
6. Ibid.
7. Jagir Singh., Manoj Gupta., Honparkhe, M., Dadar Wai, D., and Ajeet Kumar. (2005).
“Clean and Safe Milk Production: A Great Challenge in India.” Dairy Planner,
4(11).Year 2.20.
8. Ibid.
9. Ibid., p. xii.
10. Ibid., p. 2.
11. (WWW.aavinmilk.com) Accessed on 24 October.2008.
12. Ibid.
13. Kothari, C.R. (2004). Research Methodology-Methods & Techniques. New Delhi:
New Age International Private Limited.174.
14. Ibid., p.61.
15. Ibid., p.293.
16. Ibid., p.298.

17. Ibid., p.239.
18. Ibid., p307.

CHAPTER II
REVIEW OF LITERATURE
A review of literature is the mirror of earlier studies, which enriches the
researcher, and helps to identify the areas for any future research. There were many
previous studies dealing with the general structure of the dairy industry, its four Ps, and
its satisfaction to the consumers. They are listed here to show to what extent the elements
of marketing were explored in empirical research and to improve the methods and
techniques adopted for the study.
PRODUCT
Panwar (1984), studied the consumption profile of urban milk consumers and
highlighted that there is a mathematical relationship between milk purchased and size
and income of a family. He further concluded that there is a high degree of correlation
between milk purchased and income of the family, but low degree of correlation between
quantity of milk purchased and size of the family.
Gyanendra K.Goyal (1986), observed that in USA glass bottles for milk are facing
elimination. The paper boards for dairy products are also showing decreasing trend in
favor of plastics. Americans are avoiding taking high fat dairy products and preferring
low fat products. People over there are after convenient packages and do not mind paying
little more for the convenience.
Ratnam (1986), in his study on dairy development (demand and supply aspects) in
Visakhapatnam city opined that if there is any change in the distribution of income in
favour of the poor will have great impact on the demand for milk. He further observed
that the household size is having a positive effect on the consumption of milk, but there
are no economics or diseconomics of scale in milk consumption. Also the educational
level attended by the head of the household is having a significant positive effect on
consumption of milk.
Bedi (1987), in his study highlights that the consumption of liquid milk in India is
estimated to be very poor. Hardly 40 per cent of the total milk is consumed in this form.
The balance 60 per cent is converted into various milk products like ghee, curd, butter
and so on. Ghee alone claims around 33 per cent of the aggregate milk supply. Apart
from their direct consumption, these items are used for manufacturing many high priced
milk products.
Keshavdas (1994), in his study on emerging dairy scenario observed that milk
production has grown to about 63 million tones in 1993. And there are 69,383 Anand
pattern village milk producers co-operative societies operating in the country, which
collectively procure about 10.60 million litres of milk per day. The author observed that
our per capita consumption of milk has also increased and demand for indigenous milk
products has a forward trend.
Sohal (1994), in his study on futorology of dairying in India observed that the
establishment of rural chilling units, the milk is reaching safely in processing plants
where from pasteurized and chilled milk can safely travel a distance of 2000 to 3000 km
in refrigerated road / rail tankers. In this way, the milk from the high milk producing
regions like Punjab, Haryana, U.P., Rajasthan can be transported to distantly located
metropolis of Madras, Calcutta and Bombay and many other urban cities. The study
further concludes that more and more urban consumers are preferring hygienically –
packaged milk.
George K.Mathew, Rajeev Bhanawat, and Khanna (1995), observed that the
Rajasthan co-operative Dairy Jaipur Zilla Dugdh Udpatak Sahakari Sangh (JZDUSS)
undertook the SWOT analysis of the market as well as the dairy. The success in the
marketing front could not have been attained without the continuous striving to raise the
satisfaction levels of the dairy customers as well as the consumers and building up the
brand image of “Saras.”
Gupta and Harpal Kaur (1995), in their study on consumption pattern of milk and
milk products in union Territory of Chandigarh highlights that per capita milk
consumption was 590 ml, which was significantly higher than the minimum
recommended nutritional level. About 45 per cent of the milk purchased by the
households was utilized for making tea, 15 per cent for preparation of curd, 10 per cent
for butter and 30 per cent as such. Among the various milk product the highest
consumption was of curd and the lowest of ghee.
Jagjit S.Punjrath (1995), highlights that packaging plays a very important role in
protection of nutrition and saving of wastage besides improving the marketability and
development of new products. Proper packaging can help the dairy industry to achieve
better returns and pay better prices to the producers. It can increase the milk production.
Lot of progress has already been made in developed countries in this area. Many of the
innovations already made in developed countries can be easily adopted in India.
Prakash (1995), observed that future of dairy industry in India depends mainly on
the quality of raw material that we produce along with the quantity of milk that should be
jacked up with emphasis on hygienic processing, shelf life, suitability of milk and milk
byproducts and utilization of the whey, to produce pollution-free effluents as well as

make traditional milk byproducts of international standards, also meeting the health
standards. It is important that we now realize the need for such a future thinking in the
area of dairy industry with a firm goal to achieve. At the same time we must have a
clarity in mind as to what we need to achieve. It is very important to draw a triangular
relationship of raw material production-local consumers demand-export oriented products
such that there is no imbalance of one against the other.
Rathore (1995), in his study on “Total Quality Management (TQM) in dairy
sector,” the author observed that total quality management can help dairy sector in
producing quality milk foods at competitive prices. If TQM is adopted as a movement in
the dairy sector, it can help this sector in assuming world leadership role, in the near
future.
Sumita som, Lata Ramachandran and Sukhminder Singh (1996), observed that
labeling imparts information to the consumer about the contents of food. The role of
nutritional labeling is therefore, extremely important in the context of emergence of
cheaper imitation foods, product innovations, vitamin and mineral enriched foods,
increased use of additives, preservatives and upcoming fabricated ready-to-eat foods.
Ganguli (1997), highlights that scientific investigations have established that
vegetarian diet is much better for health and environmental protection. The structure of
human body is more suitable for vegetarian diet. Nutrition experts in India feel that a
combination of pulses, cereals, fresh vegetables, milk or curd provide adequate proteins
and other essential nutriceuticals. To preserve health and environment, the people prefer a
vegetarian diet, with a „touch‟ of milk in it, as an essential component.

Jagjit S. Punjrath (1997), in his study highlighted that India is witnessing winds of
change because of improved milk availability, a change over to market economy,
globalization and the entry of the private sector in the dairy Industry. He also observed
that value addition and variety in the availability of milk products are on everybody‟s
agenda. The reason behind this is due to increase in disposable incomes, change in
consumer concerns and perceptions on nutritional quality and safety. Finally concludes
by saying that future belongs to those who can successfully compete in the race for
technological innovations.
Kuldeep Sharma (1997), in his study on “Market milk spurts ahead.” The author
observed that for a dairy entrepreneur, liquid milk offers a viable option to register his
presence in the market. Further the doubling of the urban population during 1971-91 to
218 million has given a fillip to the demand for pasteurized liquid milk in cities.
Mahadevan (1997), in his study on opportunities in marketing reveals that the
growth in population and purchasing power along with technological progress offer
exciting prospects for marketing of milk and milk products. This scenario heralds a
bright future for the organised sector.
Rakesh Saxena (1997), in his study on demand for milk and milk products found
that the share of consumer expenditure on milk is increasing in both urban and rural
areas, while that on cereals is decreasing. The study also reveals that among higher
income groups, it exceeds that on cereals. All this reflects on the increasing consumption
of milk and this would gain further momentum in years to come.
Sharma (1997), in his study on “Consumer acceptance studies”, the author state
that in today‟s competitive market, consumer is the most important individual who
obtains and uses a commodity. Therefore the sensory perception and preference of
consumer population is most important for any food manufacturing organization. The
organizations, involved in new product development and preservation of traditional and
ethnic food products have to conduct consumer population surveys to obtain realistic and
homogeneous information on their products.
Sri Hari Rao (1997), in his study found that the introduction of aseptic packaging
has given a new dimension to milk marketing in the country. It imparts long shelf-life to
highly perishable liquid milk products without the need for refrigeration. He also
observed that about 82 per cent of the UHT (Ultra High Temperature) milk consumers
belong to upper middle class and they are not price- sensitive. The buyers of UHT milk
are relatively more among consumers who are aware of its special features and are ready
to pay a premium for them.
Varadrajan (1997), in his study on four Ps of profitable dairying observed that the
Indian dairy Industry after delicensing attracted a large number of entrepreneurs. He
concluded that success in dairying depends on factors such as efficient, economical
procurement network, hygienic, cost effective processing facilities and innovativeness
in the market place. He also says to convert the products into commercially exploitable
ideas to make money.
Vyas (1997), in his study observed that the milk utilization pattern of the world is
different than India. About 51 per cent of the world milk production is utilized as liquid
milk, 27 per cent goes into cheese making, five per cent is used for milk powders and
only four per cent is utilized as butter whereas in India 45 per cent is consumed as liquid
milk 35 per cent goes into ghee, seven per cent as paneer and only four per cent as milk
powders. Indian dairy exports are sporadic and in bulk quantities, and there is a need to
change the paradigm and to start, brand building exercise. “Made in India” tag should be
popularised.
Anand et al., (1998), in their study on “An urgent need of HACCP system for
Indian pasteurized milk industry.” The author observed that HACCP system is quite
effective in analysing and checking hazards encountered by food products at various
stages during production, transportation and till the consumption by the consumer.
Ganguli (1998), in his study on “Milk production and quality in Asia” found that
in terms of both buffalo population and its milk production, Asian countries account for a
96 per cent share of the world‟s total. The Asian countries would gain immensely from
the „Buffalo Bonanza‟ if they succeed in producing quality milk as per international
standards.
Kansal (1998), in his study on “Milk offers dietary calcium in best available
form” the author highlights that milk in all its forms is an important source of calcium
an essential nutrient for human beings of all age-groups and inclusion of milk in diet
improves the bioavailability of calcium from vegetable foods.
Prasad (1998), in his study on “Hygienic and safety aspects of dairy products.”
The author observed that strict following of the HACCP principles and applications of
Bio-Tech diagnostics would help in rendering food products safe for long periods.
Sandeep Kaushik (1998), in his study on “Recent innovation in the packaging of
liquid milk-fino.” The author observed that the fino aseptic packaging provided a cost
effective method in the distribution of liquid milk. This multilayered fibre based,
tamper- proof aseptic pack preserves the freshness and extends the shelf-life of UHT
treated milk to about 45 days at ambient temperatures.
Vyas (1998), in his study on “Challenges of 2020-Gujarat dairy industry‟s
vision.” The author suggest that the most powerful weapon to tackle the challenges
before the dairy industry in the 21st century is the double edged sword of quality and
customer focus.
Chawla (1999), in his study on “HACCP system-should it be made mandatory?
Emerging global dairy product safety scenario.” The author say that the HACCP system
and the ISO 9000 quality certification, if not accepted, will act as non-tariff barriers for
our dairy exports. These two have been accepted as international bench-mark of hygienic
production of quality dairy foods.
Gurr (1999), in his study on “Milk and health-pros and cons.” The author say that
some constituents of milk play a role in protecting against dental decay; others have anti-
cancer properties; yet others reduce blood pressure and have anti-thrombotic effects.
Jain and sharma (1999), in their study ascertained consumer opinion for
purchase of milk and milk products based on a sample survey conducted in two different
regions of the country. The study reveals the better presence of the organised dairy
sector and consumers preference for it in Southern India as compared to the Northern
region. He also observed that this sector‟s presence is negligible in rural areas of both
the regions, where consumers mostly prefer home-made dairy products.
Jerry Dryer (1999), in his study on “Insights-quick and easy thoughts on
convenience.” The author observed that convenience- minded folks can place orders on-
line (or) through phone or fax. The E-milkman delivers milk in aseptic quarts and half-
and- half in aseptic pints. The shelf- stable packaging allows the product to be stored
unrefrigerated for months. That way, consumers never have to worry about running out
of farmland‟s pasture perfect milk. He also indicate that office coffee stations don‟t
have to compromise with non-dairy creamer when a convenient dairy alternative is
available.
Vina Vani (1999), in her study on “A systematic approach for improving packing
process of milk pouches.” The author say that the number of leak milk pouches can be
reduced by making them withstand the drop failure test. For this, best settings of
parameters like thickness of film, sealing voltage, length of pouch and so on have to be
evolved experimentally.
Vyas (1999), in his study highlights that Amul is going in for Total Quality
Management (TQM) proves that there is nothing Japanese or western about it. The main
aim of TQM is continuous improvement in quality keeping the customer at the focus.
Chauhan (2000), in his study found that the Indian dairying is well aware of
quality‟s role in its progress and survival in the face of international competition. And it
needs a sincere and continuous efforts at all levels to achieve the best in quality.
Veena Mathur (2000), in her study highlights that the leaking pouches not only
lead to an avoidable waste of milk worth crores but also deteriorate the quality of milk. It
makes business sense to give importance to the value per pouch of milk, not the kg cost
of film, in the overall economics of packaging.
Vikas Nanda and Saxena (2000), in their study observed that the wastage of milk
because of poor processing and infrastructural deficiencies costs the nation about
Rs.5500 crores. This calls for proper utilisation of milk by following the HACCP system
and good hygienic and manufacturing practices.
Amarjit Singh et al., (2001), in their study observed that the 21st century belongs
to consumer. Internet revolution, e-commerce and abolition of trade barriers through
WTO, has reduced the world to a global village in the true sense. And the consumer has
plenty of options now. Therefore, only the best in terms of quality, service and cost is
going to last the competition.
Chawla (2001), in his study observed that a very few in the dairy industry realize
that the epicenter of safety requirement in case of milk and milk products is the milking
animal. So he suggests that if India is to emerge as a major player in the world dairy
market, it should gear up to face emerging OIE (International Office of Epizootics)
challenges.
Gopi, Parthiban and Dhanalakshmi (2001), in their study on bacteriological
quality of private brands of milk in Chennai city say that the organized dairies
supplying branded milks in Chennai city should take utmost care in milk processing,
packaging and transport in order to provide quality milk and the local vendors must
maintain proper refrigeration facility during storage. Procurement and consumer price is
to be fixed based on the bacteriological quality of milk. And there is a need for regular
monitoring of bacteriological quality of private milk sold in Chennai.
Nitin Jain (2001), in his study on quality management in dairy industry observe
that the implementation of a Quality Management System (QMS) leads to a highly
structured and systematic method of Quality Assurance (QA). The QMS is a
comprehensive method of QA, wherein good manufacturing practices integrate with

HACCP systems and provides a framework for the development and implementation of
QMS, with subsequent registration to ISO 9000.
Mahesh Chander (2001), in his study state that converting to organic production
may be far easier for Indian farmers in comparison to their European counter parts where
conventional production has reached to a very high level of input dependence, overuse of
antibiotics, pesticides, feed additives and so on. The low external inputs based Indian
dairy sector has better opportunities to convert to organic production. Since, majority of
Indian farmers are organic farmers not by choice but by default.
Ravi Shankar (2001), in his study on role and vision of dairy co-operatives in
new millennium observed that high quality standards are critical in a market with
intense domestic and international competition. At every stage where quality can be
compromised (i.e.,) from milking the animal to procurement and processing and on to
delivery to the consumer must be identified. And corrective steps must be taken of each
stage to minimize contamination and maximize quality.
Sohrab (2001), in his study observed that the advent of quality and food safety
management system standards, there is a broad consensus about its minimum
requirements. Specially for entry into competitive global markets, installation of quality
and food safety have become de rigueur for long-term survival.
Amit Roy (2002), observed that the milk market in India was governed by
cooperative dairies and federations. However, with the entry of MNCs and private
regional players the market has experienced a lot of activity. MNCs and regional private
companies have done their home work well. They have a clear understanding of the
market in terms of key/potential areas / markets / profile of consumers and their needs /
the means to reach the consumer. These players have been able to capture markets by
introducing a wide range of flavours that cater to the taste of the consumers. They have
been able to gain a significant share of the pie by adapting to the changing life styles of
the Indian consumers. In such a competitive scenario the future would witness “The
survival of the fittest.”
Aneja et al., (2002), studied the quality monitoring steps taken by the co-
operative dairy sector under the National Dairy Development Board (NDDB) and the
large organized dairy plants in the private sector. The processing of raw (or) chilled
milk received at the dairy plant is to meet the quality standards to conform to the law of
the country, to comply with certification requirements of agencies like Agmark and
Bureau of Indian Standards, International Standards Organization (ISO), Codex
Alimentarius Commission (CAC), to enhance shelf-life of the product and to satisfy
consumer taste.
Dheeraj Kumar and Girish Bakde (2002), in their study observed that in India
the food-processing industry is still in the nascent stage. As such the quality and
standardization aspects often take a back seat. Though India has become part of global
economy and aims to compete in the world market. In case it must pay attention on these
aspects.
Mehta (2002), in his study highlights that brand building requires a consistent and
sustained effort to succeed. It requires an appropriate mindset that respects the consumers
viewpoint and acts on it and also requires financial commitment as brand building is an
ongoing, long-term investment, not to be considered a one-time expenditure.

Nanasaheb Chitale (2002), in his study on liquid milk marketing- opportunities
and threats. The author observed that there is a need to improve genetics of the animals,
clean milk production techniques, optimum feed formulations to achieve market driven
milk production and distribution. He concludes that it is necessary to achieve these facts
to market more liquid milk.
Rasul (2002), in his study observed that packaging plays an important role in the
marketing of processed food by enhancing its shelf life. They also prevent the
contamination of food and deterioration in its quality. In India packaging industry is still
in a nascent stage, because of the lower demand for the processed food. How ever the
processing industry poised for a lead, the packaging industry is all set to receive a boost.
Reddy (2002), in his study state that consumer trends are changing, technological
advances are taking place, organic dairying is the emerging slogan. At this juncture,
consumer satisfaction is the key force that will determine future strategies. Achieving it is
possible by assuring quality to consumers.
Sharma et al., (2002), in their study found that the dairy industry is equally under
increasing pressure of maintaining total quality to compete in the global market after the
enforcement of WTO agreement. He also observed that there is a strong need for
automation of dairy processing operations in the plants integrated with computer
assisted SQC programmes, MIS, etc., in this country to make Indian dairy Industry more
competitive in national and international markets.
Vijay Sardana (2002), observed that in the increasingly competitive dairy market,
catering to traditional consumption won‟t be sufficient to guarantee success and profits.
Even as more, manufacturers target the modern consumer, the reliance on new product
development will increase because their product port folio will experience unprecedented
change.
Vyas (2002), highlights that income is the key determinant in dairy
consumption in Asia. Its effect is less in developed countries like North America and
Europe. A fat-weary west is gradually shying away from milk and milk products,
implying a zero growth scenario. This would lead to a net flat growth in total dairy
demand. The growing Asian market will continue to demand high quality products at
competitive prices. There would emerge a narrow niche for premium products in Asia
too, with little price sensitivity. Information and communication revolution will enable
more transparent market places at lower transaction costs. Most value-addition would be
based on genuine creativity and innovation in products, processes and delivery. The west
will place a huge premium on health and the emerging market in food would blend health
and entertainment. Nutraceuticals will be an attractive market. Low-fat products will be
the order of the day, particularly with the imminent aging of the west. Synthetics would
give way to fresh products and convenience would not be at the cost of quality.
Balaraman (2003), in his study on “Status and prospects- milk production
systems” the author highlights that India in the largest producer of milk in the world and
a leader in tropical dairying with buffaloes as the chief dairy stock. The existing export
status is about Rs.200 crores in a year. Dairy products constitute less than one percent of
the overall export of animal products from our country. The chemical and
microbiological quality of milk and milk products have to meet the stipulated
international standards. A large network of quality control laboratories, uniform

methods of analyses, adequate technical personnel to manage the quality assurance tasks
and measures for sanitary and phytosanitary monitoring are needed.
Chawla (2003), examined the imperative for building India‟s global dairy
position. The author concludes that the dairy industry needs to gear up and achieve
international competitiveness in terms of price, quality and technology.
Jagdish C. Badola (2003), analysed the behaviour patterns of consumer buyers of
dairy products. The author observed that on an average, a sample household is found to
be spending Rs. 555/- on dairy products per month. The factors influencing the
purchasing of a product was brand, low price, good flavour, taste, availability, freshness,
quality and packing, advertisement, sales promotion. Consumption of unbranded products
was found to be very common in case of liquid milk, paneer and sweets. The findings
and implications of the study are of immense use to the organized dairy processors as
well as the marketers of dairy products.They can plan their marketing mix, based on the
findings, to create and expand market of dairy products, particularly the branded product.
Jain (2003), studied the parametric analysis of milk for global acceptance and he
concluded that the quality is achievable through proven technologies for reliable and
transparent measurement and monitoring of milk parameters at each stage from milk
producer to the consumer.
Kumar and Anand (2003), observed that extending the self life of milk offers a
great opportunity for expanding the share of organized sector in market milk sector. The
application of some of these technologies like thermal processing, physical
modifications, packaging technologies, formulations, modifications will improve the

shelf-life of milk.It will help them to achieve better penetration of distant market, not
only within the country but even for export.
Patil (2003), studied the research and product development needs of dairy sector.
The author observed that the dairy industry in many parts of the world has developed
cost effective processes to fractionate bioactive components for commercial
applications. The product designers in our country need to offer product formulations
with demonstrable health benefits so that the industry has more options for value
creation and diversification.
Ramachand, Sidhu and Gosain (2003), studied the impact of liberalization polices
on the functioning of state dairy co-operatives federations and private dairy industry in
India to ascertain the issues pertaining to it. The data was collected from 122 respondents
through personal interview and using questionnaire in six states. The study highlights the
changing global scenario and the strength of the Indian dairy sector. The study reveals
that there is an urgent need to improve the quality of milk being produced at the rural
level and also at the collection centers. They also emphasized that time has come to
introduce product diversification and packaging, so as to make the different dairy
products internationally competitive both on price and quality fronts for countering
imports while competing in dairy export markets.
Satish Kulkarni and Unnikrishnan (2003), in their study on “Research marketing and
industrial consultancies,” observed that the dairy industry has lost the initial zeal and the
introduction of innovative products and processes has now slowed down considerably.
This can be ascribed to thin margins in profits due to stiff competition, making the
industry reluctant to take risks by investing funds for developing newer products and
processes. It has, therefore, become necessary to device a method to motivate the dairy
industry to invest in research and development.
Shaikh (2003), in his study on operational excellence in manufacturing
emphasize six-sigma measuring product quality and improving process engineering and
drives process improvement and cost saving. He concludes that operational excellence
has become a primary requirement and the number one step to be a market leader.
Shiv Prasad (2003), studied the quality assurance in milk production at organized
dairy farms, the author observed that the need for quality milk production could be
viewed in two aspects, one the profitability and the other is competitiveness of dairy
enterprises and public health aspects. He further concludes that the profitability of a dairy
enterprise depends upon the biological productivity of a herd, efficient or economical use
of resources as well as the cleanliness or quality of the product which greatly affects its
marketability and price.
Sodhi (2003), in his study found that Amul had set the quality benchmark for
dairy products at affordable price. Further says about the portfolio management of the
Gujarat Co-operative Milk Marketing Federation Ltd., (GCMMF) and about the
constant environmental scanning and addition of new and innovative products done by
the GCMMF to fill emerging gaps in the evolving market place.
Tripathi (2003), in his study on “UHT milk: challenges and opportunities-here
and now!” the author says that tetra packages provide and assurance of safe delivery
of the packed product. He also says that it had increased local consumption and hence
assured sales.
Vijay sood (2003), examined the issues in packaging and presentation. The
author observed that to meet the consumer expectations locally or globally need of
innovation is imminent. Although, reasonable infrastructure exits, the industry in general
lacks quality consciousness. Emphasis seems to be quality rather quality due to cost
reasons. He concludes that dedicated joint efforts through philosophy of business
partners is the need of the day to achieve quality objective at optimal cost.
Ansari et al., (2004), in their study observed that the use of high temperature for
a short period of time in aseptic processing yields a high quality product. It gives
portable liquids long bacteria free shelf life while maintaining their nutritional
integrity. And the aseptic packaging offers altogether advantages to the consumer
(improved product quality, freshness) as well as to distribution channels (lower
distribution and storage costs, more appropriate shelf life, relief of pressure on chilled
cabinet, cost effective and free from additives). Aseptic packaging retains high levels of
nutrition and flavor in food contents while ensuring outstanding safety to consumers.
Ashok Choudhery (2004), observed that the dairy industry‟s future depends upon
expanding and meeting the domestic demand of milk and milk products. He finally
concludes that more innovative ideas will be required to produce new products meeting
with the aspirations of consumers.
Kansal (2004), in his study highlights that inclusion of milk in vegetarian diet is
essential to balance it with respect to nutrient. Planning a balanced diet without
incorporating milk is not only difficult proposition but also will incur the risk of making
diet bulky and excessively rich in calories. He finally concludes that milk contains
several molecules that provide protection against cancer, cardiovascular diseases,
hypertension, various types of cancer, osteoporosis and so on.
Sharma et al., (2004), in their study observed that the advent of internet and easy
availability of computer networks, advanced software development tools for storage and
retrieval and online dissemination of information in a systematic manner, the present
web-database is being hooked up with the Institute‟s website very shortly. So as to enable
users around the world for online searching /ordering/depositing dairy cultures to the
National Collection of Dairy Cultures (NCDC) more effectively.
Sohrab (2004), highlights that traceability of a problem from product pack to
source cow and rigorous quality assurance measures at every step of the process will be
necessary to meet consumer requirements for “safe food.”
Sumit Arora et al., (2004), studied the status of milk adulteration in some states
of North India based on milk samples collected from both organized and unorganized
sector. The samples were tested using rapid test kit, developed at National Dairy
Research Institute (NDRI), Karnal. It is revealed from the study that major adulterants
encountered were urea, starch, sugar, neutralizer, common salt and added water. The
survey detected milk adulteration in all the states of North India. It is also detected that
some milk samples contained more than one adulterant.
Tanweer Alam and Goyal (2004), observed that Modified Atmosphere Packaging
(MAP) is used extensively for shelf-life extension and distribution of foods. It will
slowly emerge as the preservation packaging technology of the future, propelling the
food industry into new era of food products, distribution and marketing.
Venkata Subramanian (2004), observed that the automation in dairy industry is
very important to produce, consistently high quality products meeting international
standards of nutrition, hygiene, health and safety at competitive price. He also says that
India has the opportunity of becoming global dairy giant in the market driven economy
focusing basically on two main aspects that is on price competitiveness and product
quality. This can be achieved through automated processing plants.
Venkateshwarulu et al., (2004), in their study observed that privatization and
phenomena of globalization has created a competitive market for milk for the advantage
of the common consumer. He finally suggest to have mandatory straight market control
mechanism to prevent adulteration by neutralizers and other harmful chemicals and
addition of starch or other agents. The study also reveals that some of the milk sachets
are under weighted.
Anand et al., (2005), in their study observed that for effective implementation of
the HACCP plan we require qualified technical staff, quality testing laboratories, and lots
of record keeping. He also says that may not be an easier job but seeing its long gain we
should take the initiative and try to adapt this system.
Bhag Chand Katre (2005), in his study observed that internal and surveillance
audits conducted by independent and qualified auditors would result in proper
examination of facts. Compliance of the audit findings by taking corrective and
preventive actions will improve the quality status of operations and lead to high level of
assurance with respect to products/service quality aiming to achieve higher customer
satisfaction and build up the brand image, reputation and marketability.

Khanna (2005), says that the disposable income of people in Asian countries is
expected to increase at three per cent to five per cent annually as compared to an average
rate of one per cent annual in the developed countries. These combined are expected to
grow the demand for milk and milk products by five per cent in Asia as compared to one
point seven per cent in the world. He also observed that milk producers of Asia have to
capture this in-house demand before it is taken over by other. The ready-to-eat food
market, consumption of food products „away-from-home‟ and the concept of food
parlours is opening new vistas for ready-to-serve dairy products.
Mondal (2005), in his study observed that India‟s exports are relatively
insignificant. Major factors for low export of milk products is the quality and safety
aspects. Consumer of all over the world is showing their preference for high quality of
products. Many importing countries such as USA, EU insist on implementation of Food
Safety Management System (FSMS) such as HACCP/GMP/GHP rather then depending
on final product inspection.
Parekh (2005), highlights that the dairy industry need to improve upon the overall
quality of the milk and milk products and to expand into the indigenous milk products
manufacture in order to increase the volume processed by it of total milk produced in the
country.
Parveen Rattan (2005), in his study observed that pet bottles offered various
advantages. More and more dairy companies world wide are adopting this packaging
format. He also says that in terms of growth rates, PET has shown the highest growth
rates for dairy applications in Europe during the period 2002-04, admittedly, on a small
base.
Per Marvig (2005), in his study observed that only the milk fat percentage used to
be standardized previously. But, today it is possible to standardize almost all milk
constituents, allowing for more uniform products, a wide range of functional properties,
and better operating economy. He also observed that new product ideas, improved
technology and so on., cannot stand alone and concludes that the hygienic design is
indeed the key criterion for success in the new emerging markets.
Raja Rathinam (2005), in his study observed that there is growing demand for
organic and health dairy food. Although there is modest beginning on these food items,
there is a need for organized way through quality production to sustain the market and
goodwill of consumers.
Sarkar et al., (2005), observed that HACCP is a management system in which
food safety is addressed through the analysis and control of biological, chemical and
physical hazards from raw material production, procurement and handling to
manufacturing, distribution and consumption of the finished product. It provides dairy
food manufacturers with greater security of control over product safety than is possible
with end product testing.
Sohrab (2005), observed that the HACCP system is an accepted proactive and
preventive mechanism for producing good milk and is vital for management of quality
and safety of dairy products to assure customers around the world. He finally concludes
that HACCP adds reliability to quality that is food is not only good at the point of
manufacture but also through its shelf life period.
Sundara Murthy (2005), observed that Karnataka Milk Federation (KMF)
comprising 13 milk union in Karnataka is procuring 32 LLPD and selling 17 LLPD of

liquid milk. Dairy Co-operative Societies (DCS) and milk collection system of the union
of KMF have successfully demonstrated that it is possible to collect raw milk having high
microbiological quality and conforming to the bacterial standards of advanced dairying
countries such as Denmark, New Zealand , Australia and so on. KMF also has a long-
term objective of collecting quality clean milk of more than 12 LLPD for the preparation
of value added products for export markets.
Ansari et al., (2006), in their study on “Microbiological testing of aseptic
processing and packaging system,” the author state that a successful test would result in
no spoilage in product processed at the highest temperature, indicating that the time-
temperature combination is adequate for commercial sterility and complete spoilage at
the lowest temperature.
Ganguli (2006), in his study on “The management policies and strategies for
development and implementation of total quality assurance system in dairy industry,” the
author say that the Indian dairy industry needs a clarion call to wake it up from its
slumber and adopt HACCP quality system in conjugation with ISO 9002 for not only
international competitiveness, but for the very survival of the industry.
International Dairy Federation (2006), report on “The world dairy situation 2005”
highlights that the international trade in dairy products has stagnated or even declined.
The data from 45 countries, reveals that the processing of milk by dairy plants for liquid
consumption has been increasing since 2000. Particularly between 2000 and 2004, the
milk delivery to dairy plants in these countries, has risen from 94 million tones to around
102 million tonnes.

Jayen S. Mehta (2006), in his study on “Understanding the new Indian consumers:
trends in consumer food habits and preferences,” the author highlights that the dairy
industry is very well poised today to take care of most of the nutritional requirements of
the customers of tomorrow. As more and more education and awareness among
customers are spreading, we are sure to do much better in the years to come.
Rajorhia (2006), in his study on “Managing quality and safety standards for milk
and milk products,” the author highlights that consumers are moving to alternative
choices to access safe products. Before the market control is lost to imported products,
the Indian dairy industry must become genuinely serious about managing the quality of
milk and milk products.
Ramasamy (2006), in his study on “Organic dairy farming” highlights that India
is the world‟s largest milk producer and Indian milk is also cost competitive, being the
fourth lowest in the world as regards cost. But in quality terms, our milk is quite poor as
compared to developed countries. So he suggest that we need to do a lot in this area to be
a global player.
Sikha Banerjee (2006), in her study observed, that there is a wide variation in the
share of milk delivered to dairies, in various countries. Particularly in the USA, New
Zealand, Japan, the European Union (EU), Argentina, Czech Republic, South Africa and
so on., the share is between 95-98 per cent whereas, in India it is barely 12 per cent and it
is yet to commercially realize that full potential of its enormous milk wealth.
Chandan (2007), highlights that the liquid milk market has emerged as the most
dynamic segment of the dairy industry growing at 10 per cent. The urban dairy market,
dominated by liquid milk, has many exciting opportunities for the entrepreneur. It cannot
be regarded as homogeneous, but layered, with each layer offering its own rewards. In
the organized sector, the share of three per cent fat toned milk exceeded 50 per cent, four
point five per cent fat standardized milk stood at 33 per cent and six per cent fat full-
cream milk was nine per cent.
Joe Phelan (2007), in his study observed that urbanization and economic
development will increase the range and sophistication of products and it will also lead to
an increase in the proportion of milk entering the formal channels in developing
countries.
Kurien (2007), the father of India‟s White Revolution state that the future of
India‟s dairy industry will have to be built on quality and quality alone. The Indian dairy
industry must have the latest modern technology for milk processing and product
manufacture. We must define the standards necessary to achieve and maintain world-
class quality.
Praduman Kumar et al., (2007), in their study observed that in the last two
decades, the per capita consumption of milk and eggs has almost doubled. The
consumption levels of the poor are much below those of the rich. The gap however is
slowly narrowing down. Similarly, the gap in consumption levels of urban and rural
population is also heading towards a convergence. Technological improvements are
needed in livestock production to benefit producers as well as consumers.
Sarkar et al., (2007), observed that food packaging is one of the prime importance
in the chain of food production, distribution, storage and marketing. A bad quality of
packaging materials sometime damages the whole lot of finished products. In addition to
ensuring that there is no chemically detectable deterioration, it is vital to ensure that the
foodstuff does not undergo any change in its organoleptic properties caused by long or
short-term contact with the packaging.
Atanu Jana (2009), state that consumers awareness towards „healthy‟, „safe‟,
„fresh-like‟ and „all natural foods‟ and the crave for convenience will be the driving force
for our dairy industry to give further impetus to „value-addition‟ to milk and dairy
products. Industry will have to keep pace with the changing food habits and life-style of
people. The dairy industry will have to satisfy all types of food related establishments be
it restaurants, food industry, retailers, importers and even varied customers. There is a
phenomenal scope for innovations in product development, packaging and presentation.
The „value added‟ food can make „healthy‟ people healthier and prevent people from
becoming „sick‟. Adoption of ISO 22000 (Food Safety Management System) by dairy
industry will keep the contaminants out of food chain and our products will be able to
compete in the international market. It will be worth buying and consuming „value-
added‟ food products of the future.
Neelesh chauhan (2009), in his study on “Danisco-first you add knowledge” the
author say that success of dairy product manufacturer is dependent on their ability to
launch innovative, new products that respond to the constantly changing market. Danisco
offers a comprehensive range of ingredients for the food industry and is able to respond
faster to customers growing demand for new and innovative products.
PRICE
Asim K.Banerjee and Taneja (1983), in their study observed that the aseptic milk
packaging transforms milk into a grocery type product which can be bought anywhere
and at any time. It represents a technological break-through in packaging and enhancing

the shelf-life of milk substantially. The cost of milk in aseptic pack is 30 paisa more than
the cost of pasteurized milk in bottle. But this difference of 30 paisa should not swing the
decision against introducing aspectic packaging technology as the difference will reduce
considerably because unlike retailed in bottles through city dairies aseptically packed
milk does not require reprocessing of milk in city dairies and collection of empty cartons
for re-use.
Kotnis (1983), observed that the price varies from state to state and from dairy to
dairy and there is no definite policy with regard to the price of milk to be paid by
consumers for different types of milk. Indian Dairy Association (I.D.A) should therefore
pursue to have a bureau on scientific basis wherein the sale price of milk will be fixed
almost all over the state with slight variation and the weaker sections of the society
should get milk at a reasonable price.
Aneja (1992), in his study observed that the private trade continues to sell
unhygienic, watered down and unpackaged milk at prices which are 20 to 30 per cent
higher than the price charged by the organized dairies. This phenomenon has been
explained in the past on the basis of “freshness” of milk solid by the traditional trade and
also better flavour, home delivery and availability of credit. It appears that “freshness” of
milk is the key and the hygienic quality of milk could contribute to better realizations
from the consumers. It is therefore worth considering paying a slightly higher price for
hygienically produced milk.
Ray Chaudhuri (1993), in his study highlights that the business of dairying
depends on one such important factor that is what price is being received by the milk
producers and what price is paid by the consumers. Producer‟s price of milk depends on
its composition and also whether it is cow milk or buffalo milk. The retail price similarly
depends on the composition, type of milk, the type of packaging and the system of
distribution. What is important is that the retail price should be such that it is not beyond
the consumers purchasing power. On the other hand, the producers price should be such
that the farmers get a remunerative price.
Rakesh Saxena (2000), in his study on dynamics of demand for milk in this
millennium concludes that the level of income continues to be the most important
determinant of demand for milk and milk products. The second most important factor
influencing the demand for milk products appears to be the prices of milk and milk
products. The prices of other related products do not seem to have much influence on the
demand for milk and milk products. There is however a regional preference for milk and
milk products. The people living in the Northern region and parts of the Western region
spend a much higher proportion of their income on milk and milk products as compared
to other regions of the country.
Mathur, Thompkinson and Latha Sabikhi (2000), in their study on milk and dairy
products for nutritional security and health observed that the advances in the study of
chemical and functional roles of milk and milk products have given a new impetus in
rediscovering the age-old secrets of milk. And the demand for freshness, taste and
texture, convenience and variety will always govern the dairy manufacturer‟s
production strategies. The author concludes that future markets and future products
will be influenced by the consumers demand for food safety, healthful and functional
foods and good value for the money they pay.

Vijay Sadana (2001), observed that the organized sector has become the leading
milk producer in the world, the processing plants should be ready to handle the
unprecedented quantities of milk or the other players from the world would be there to
take their share. Though channeled through this route is just one-tenth of the total milk
produced. He also observed that in 1995, India‟s 370 fluid milk plants and product
factories were handling approximately 18 million litters of milk daily and it is projected
to reach about 30 million litters per day by the year 2000 AD, with a corresponding
growth in the processing plant capacity of the country.
Mathur (2001), observed that the economy of the country has been thrown open
to global market. In the light of recent developments, the dairy plants involved in the
processing of milk and manufacture of dairy products would be required to exploit the
international markets which is possible by stringent control on the quality of dairy
products. So that the products become competitive in the international market.
Datta and Ganguly (2002), in their study on consumer expenditure pattern in
Indian states with special reference to milk and milk products found that the leading
rural milk sheds of the country in terms of organized milk procurement for urban
supplies, lie in the states of Punjab, Haryana, Rajasthan , UP, Gujarat, Maharashtra,
Andhara Pradesh, Tamil Nadu. While most of the Eastern states (minor exceptions in
Bihar and West Bengal) are net consumers or the importers. And it is observed that most
of the leading milk producing states has high rural demand elasticity for milk and milk
products. As the rise in urban price and of the rural income, can affect the organized milk
procurement for urban supplies. The author suggest to initiate production enhancement
programmers in the leading rural milk sheds to offset such supply constraint in the
future.
Deepak Jain (2002), in his study observed that Indian milk is cost competitive,
being the fourth lowest in the world as regards cost. Fortunately, there are no subsidies in
the Indian dairy industry. Hence, one may say that global opportunity for the Indian dairy
industry primarily arises from the availability of large volumes of reasonably priced milk.
Kapil Kumar (2003), studied the options in manufacturing technologies and
strategies for dairy industry . The author observed that the dairy sector has to make long
strides in a market driven economy by focusing basically on two main aspects, that is
price competitiveness and product quality. He finally suggest that the strategy for the
dairy industry should be automations as it aid to efficient and cost effective
manufacturing and this is necessary for the survival of existing dairies.
Paramashivaiah and Aravind Kulkarni (2004), studied the consumer attitude
towards pasteurized milk. The author observed that suppliers of pasteurized milk should
introduce smaller packs (say 250ml) in rural areas and lower the price of their best
quality. The author also observed that non-users of pasteurized milk identified price
as a big hindrance in their purchase.
Bhaskar Chaudhuri (2006), in his study on challenges to Indian industries-present
scenario and prospects, the author says that the enlightened customer not only wants
affordable price but also quality. Sometimes, he is prepared to pay even more for a better
quality. The industries soon came to realize that they must tighten their belt in order to
remain floating and swimming. The economic compulsion of the changed scenario
brought, in its wake, certain changes in the behavioural pattern of the industries as well as
of the customers, like focus on core competence, out sourcing, value added services,
multi modalism and one-stop shopping.
Rakesh Saxena (2007), observed that demand for milk and milk products in India
has been growing as the income of people has been increasing and the relative prices of
milk slightly declining. With the average per capita milk consumption in the country still
very low, there is a huge potential demand for these products in middle and low income
segments of the domestic market. The projected demand for milk in India in 2020 ranges
from 147.5 to 160 million tones.
Animesh Banerjee (2009), state that this financial meltdown had led to a general
crisis of confidence, shrunk the credit availability and corporate growth as well as
dampened the investors sentiment world over. The Food and Agriculture Organization
(FAO) pointed out that increases in food prices over the past year has increased the
number of undernourished people in the world to an estimated 923 million. The global
market downturn cum recession should be utilized as an opportunity. The dairy industry
should, therefore, gear up to face the budding challenges. The industry, instead of
clamouring on high value niche market milk and milk products, it should evolve suitable
price and product mix strategy along with innovative product development measures to
push more affordable cum mass based branded milk and milk products.
PROMOTION
Joseph O‟Donnell (1994), highlights that our industry‟s greatest need right now is
to empower our nutrition research and education and promotion organizations with the
ability to access, integrate and synthesize marketing messages based on the nutrition data
being generated. The dairy industry has the structure and the data and now must commit
to a professional system to communicate these scientifically sound revelations to our
industry, to regulatory agencies and to the consumer.
Sheeba Chopra (1996), highlights that advertising has progressed from graffiti on
walls to jingle bell carts to the video-on-wheels to door-to-door selling to the balloon
advertising to the mass media and finally to satellite publicity through the internet. The
advertisements of yester years simply informed the custormers about the product. Today,
advertising is not simply a display of products; it attempts to create an image of the
consumer along with the product.
Vyas and Sodhi (1996), in their study on “Indian dairy industry: marketing
strategy 2000 AD,” the author observed that the marketing strategy for the coming
century is that dairy cooperatives should integrate under one or two national brands
which will leads to growth and consolidation of the dairy industry. There should also be
generic promotion of milk to boost consumption, focus brand advertising and maintain
high share of voice.
Khilnani (1997), in his study on effective marketing discussed certain key issues.
The first issue to be considered is the “customers,” who is the king, in the competitive
market. The second is the “employee” who has to be educated, trained, motivated and
supported. And the last is to pursue the excellent and superior performance. He also
indicates that to survive in today‟s world of competition one has to make his marketing
very effective in all the functional areas.
Sanjay Sinha (1997), in his study observed that the campaign of branding milk
products, though relatively new is catching up in India. More and more dairy companies
realize its potential benefits particularly in Ahmedabed, that an incredible 23 brands are
jostling for a place under the sun. The change is due to winds of liberalization blowing
across the country. He also indicate that creativity and professional marketing inputs can
turn a common product like milk into a stellar performer for the company marketing it.
Vinod K. Huria and Achaya (1997), in their study on “Milk as quality food.” The
author says about the unique quality of milk as protective food and stress the need to
formulate strategy to ensure that the milk and milk products reach infant children and
nutritionally vulnerable groups like pregnant women and nursing mothers to the desired
extend.
Chawla (1997), the Executive Director, National Dairy Development Board
(NDDB), Anand state that the TV commerical on “Drink more milk” is changing the
image of milk from a “Boring, dreary and conservative,” product to one that is “Trendy,
zingly, youthful, exciting energy drink.” The campaign aims at reversing attitudes that
have caused a decline in its consumption and revive the traditional habit of enjoying milk
drinking, particularly among youth.
Sumit Deb (2000), in his study on milking the market had sited an example of
metro dairy. A case study highlighted how it had captured 30 per cent of the pouch milk
market in Calcutta, by adopting marketing mix strategy and market oriented approach
to its production to take care of the preference of the „king‟ consumer.
Ganesh Kumar and Prabaharan (2000), in their study on dairying in India (Thrust
for 21st Century) suggest that there is urgent need to convert our weakness into
opportunities. So major emphasis should be given towards production, quality and
marketing.
Katre and Sitaram Prasad (2001), in their study found that the dairy business
viability, including growth and sustenance, is largely a function of marketability of milk
and milk products. However, the potentiality of the marketing is anticipated to be re-
looked under the present distribution network with respect to product shelf life and
quality.
Ramachandra Rao and Mony Sapna (2001), observed that attractive and
informative labels on food products help their manufacturers stand out in the market.
The consumer also finds labels very useful, while searching for the desired food
product.
Vaswani (2002), in his study towards efficient channel management in
marketing dairy products observed that the dairy industry is entering into an era of
„supply surplus‟ from the state of „supply deficit.‟ So the focus of the dairy industry has
to shift to „demand expansion.‟ The initiative to address this complex issue must come
from the industry through its consumer satisfying efforts, in terms of „sensory‟, „variety
seeking‟ and „health and nutritional‟ needs. This effort should be efffectively combined
with value-for-money pricing and sales promotion.
Takeshni Ueda and Darren L. Frechette (2002), in their study observed that
consumption of low fat and skim milk has increased substantially over the past decade.
This study also investigated whether the change is due to price and expenditure effects
or to a more fundamental preference change in milk demand. Parametric and
nonparametric analytical approaches provide a comprehensive analysis of structural
change in milk consumption in New York State. Finally he concludes that milk fat labels
have allowed consumers to act on a new set of preferences thereby improving consumer
welfare.
Suriyamurthi and Ramachandran (2003), examined the problems and prospects of
co-operative milk producers union in Tamilnadu and highlighted the constraint faced by
the co-operative from the private operators in deviation of milk supply which will lead to
destabilization of dairy co-operatives and their reluctance to advertise their product will
have an impact on their competition. In prospects side co-operatives compete with the
private sector in a level playing ground, as much as commercial organization.
Patel (2003), in his study on policy and regulations influencing milk producers,
the author highlights that marketing is business and each and every policy should be
decided, in keeping the customer at top priority and the whole organisation should be
customer focused.
Ashish kumar Banerjee (2006), in his study on “Marketing in the 21st century,”
the author state that a pragmatic marketing strategy could only be derived if we have
properly aligned strategies at various levels-such as corporate division and department
level. All these strategies have to be derived from a well thought out long-term vision
statement.
DISTRIBUTION
Rao (1995), observed that Milk Marketing Board has played an active and leading
role in creating a dairy industry in which the country can take pride. It has set and
promoted high standards for production, collection and distribution of milk. Milk
Marketing Board is the only organization that deals with milk at every stage from
production to consumption in the United Kingdom.

Katre and Sita Ram Prasad (1996), in their study on milk products marketing and
distribution system adopted by major companies operating in the Vidarbha region of
Maharastra State indicated that, more companies are going to emerge in the future. As a
result there will be severe competition among the companies in milk and milk products
marketing. To meet this competition the existing companies should analysis their
marketing distribution network and should try to remove short comings such as
monitoring of distribution system, inventory management at depot and wholesale dealers
level, system of product distribution, product category wise distribution channel
margins, rural marketing and product replacement policies. The author suggests
measures to strengthen the distribution system based on his findings and information
received in his study.
Kakkappan (1999), made an attempt to analyse the marketing operation of dairy
industry in general at macro level and Tiruchirappalli co-operative dairy in particular for
an in-depth study at micro level. The researcher says that the private dairies are
effectively competing with the Aavin in procurement and sales of milk. Their successful
operation in the field of milk distribution depends largely on the supply of quality milk,
provision of the facility for home delivery and due to the credit system of monthly
payment.
Chennegowda (2002), in his study found that out of 3700 cities and towns in
India, only about 778 are served by an organized milk distribution network, leaving a
huge potential of 2922 cities and towns to be serviced. And there exist threats for local
industries, from multinationals in fluid milk marketing at the sametime it has ample
opportunities for the benefit of the local industry. He concludes that the dairy industry
has to go a long way for increasing the marketed quantity and it can be done through
efficient consumer awareness and education programmes, market promotion activities
and effective distribution-channel management with a vast distribution network to
maintain direct relationship with the consumer.
Rajiv Dhar (2002), observed that the future of packaging in increasing the
consumption of dairy products in our country seems to be bright. We must take into
account the needs, markets and various other factors. Technological progress and
revolutionary improvements in the efficiency and economy of distribution of milk and
milk products have led to innovation in the packaging line. New systems, materials,
machinery, designs and environmental concerns are some innovations in the dairy
packaging sector. These innovations have provided greater convenience to consumers,
extended the shelf-life of products, lowered costs and also led improvements in sales,
better hygienic conditions and introduced new products and easier handling. We need
selective utilisation in the Indian environment to satisfy the needs of consumers.
Sudhir Krishna (2002), in his study highlights that the tetra fino aseptic system
has been specifically designed for emerging and developing countries. To provide
consumers in these countries access to safe, hygienic, nutritional, high quality milk, 24
hours-a-day at an affordable price. This proven technological offering, provides a
solution to dairies with surplus milk to market their produce over large geographical area,
enhancing their image with the premium quality offering to consumers.
Sanjay Panigrahi (2003), observed that the consumer expectations need to be
creatively translated into products and survival would not depend on one organization
but on the ability of the value chain to deliver better value than the competing chains.
Ramanujam (2003), in his study on the role of co-operatives in milk marketing
venture, highlighted the loopholes in distribution mechanism. The factors affect the
efficiency in the distribution of milk of the union are price, transportation cost, freedom,
infrastructure, redressal of complaints, advertisement, promotional activities. And it has
been also observed that the supply of milk is done to the convenience of the union not
according to the convenience of the consumers, next there is high fluctuation in the
production and supply of milk by the union and also there is an increase in establishment
costs and this is due to superfluous staff dumped in the union through political influence,
this should be avoided. The factors mentioned above should be given due consideration
for sound distribution, for effective marketing and to survive in the market.
Veena Mathur (2004), in her study observed that the dairies are keen to expand
their brand identity and people associate quality of milk with certain large cooperatives
and private dairies. Demand of packaged milk is growing by 12-15 per cent per annum,
thus dairies urgently need to expand their collection, pasteurization, packaging, and
distribution networks.
Vishal Gupta (2005), in his study on “Marketing strategy of dairy industry,” the
author state that on the marketing side the private dairy had decisive competitive
advantage. In addition to liquid milk marketing the private dairy also dealt in a full range
of dairy products. The quality of cooperative dairy‟s milk is looked to be outright poor.
The private dairy itself was more aggressive and maintained more frequent marketing
contacts, ensured smooth home deliveries, operated credit facilities and under took active
promotion of their products. The cooperative sector has by and large, failed to match the
marketing performance of commercial dairies. The successful product distribution

system, which cooperative federations did not learn by merely observing and studying
successful commercial dairies, adopted the traditional marketing system. In metro cities
bulk vending technologies, have given strong advantages to the cooperatives. The
distribution system was revolutionized by Mother Dairy, which depended on retailer
network and was able to capture a commanding share of Kolkata‟s liquid milk market
because of its polypacks, which can be purchased any time during the day from its bulk-
vending booths.
GENERAL STRUCTURE OF THE DAIRY INDUSTRY
It describes the milk production scenario, important factors influencing milk
production, dairy production systems, dairy population and productivity, cross breeding
technology, dairying in poverty alleviation, rural milk procurement, processing, clean
milk production, management systems for quality and food safety, food consumption,
consumer expenditure on food, nutritive value of milk and SWOT analysis of dairy
industry.
Milk has enjoyed a pride of place among all foods in India, being regarded as
“nectar” since the dawn of Indian civilization some 5,000 years back. The dairy sector is
important for its complementarity with agriculture and for its capability to provide
protein-rich diet to the vegetarian population. Consequent to the remunerative price being
received by the milk producer, the milk economy is transforming from a subsistence
activity to commercial activity. Yet the consumer has benefited because the increase in
milk prices has been generally lower than the rate of inflation and in comparison to other
food products.
As the world‟s largest milk producer, India‟s production exceeds 258 million
litres per day (94 million tones per annum). Some 70 million farmers maintain a milch
herd of about 105 million-58 million cows and 47 million buffaloes, fed largely on crop
residues. They account for 98 per cent of all milk produced in India. Milk production
starts as a trickle of one to two litres per family in some 5,00,000 remote villages. A
unique collection system transforms this trickle into a veritable flood of 140 million litres
per day for urban consumers[Gupta, 2007].
India is among the world‟s largest and fastest growing markets for milk and milk
products. The average annual growth rate of milk production has been 4 per cent during
the past decade. However, the country‟s per capital milk availability is lower than the
world‟s daily average of 285 grams though it has doubled from 124 grams in 1966 to 240
grams per day in 2005. The demand for milk has always kept pace with the production.
Two factors that account for this phenomenon are: one, the effect of Operation
Flood (1970-1996) and its strong net work that modernized the rural-based milk
production and linked it to urban markets; and two, the increasing purchasing power due
to the growing disposable income among the middle class. Even now there is a sizeable
unfulfilled demand for milk among the middle class that use it as a whitener for their tea/
coffee.
EVOLUTION OF DAIRY INDUSTRY
Indian economy is mainly based on agriculture, 70 per cent of the population is
engaged in it directly or indirectly. The rearing of cattle and dairying go hand in hand
with agriculture and helped to improve the socio-economic conditions of the rural fold.
Historical Background
The importance of animal husbandry is recognized in India since time
immemorial. The cow gained prominence with the advent of the Aryans who
workshipped it. In olden times, the richness of a household was measured on the cattle
strength it possessed. In this period , the cattle were also used as a medium of exchange.
Over the ages, the cattle and buffalo rearing has been neglected due to
multiplication of various other trades, occupations and commerce.
Dairy Development Under British Rule
In British period, dairying, animal husbandry and crop husbandry were all
clubbed together under the term „agriculture‟ and their development is not considered
with much importance.
For the first time in India, in 1886, on the recommendations of the Board of
Agriculture, the Department of Defence established a few dairy farms, to supply milk
and milk products to the British troops(Agriculture Commission Report, 1976).
In 1914, the Department of Defence on the advice of Board of Agriculture
assessed the milk producing capacity of Indian cattle and advised the Government in
1916, to appoint an Imperial Dairy Expert. In 1920, William Smith, the Imperial Dairy
Expert recommended the Government to organize training center for Defence Dairy
farms to establish it on scientific lines. Thus, for the sake of British troops, the dairy
sector was organized and developed in these period.
Development of Dairy Co-operatives
In 1937, the first “Lucknow Milk producers Co-operative Union Limited” was
established, paving the way for organization of such union in other districts and states.
In 1945, the Aarey milk colony was set up by the Bombay Government under the
Greater Bombay Milk Scheme. In 1947, in Bengal, the Greater Calcutta Milk Scheme
was initiated. In 1946, the first Farmer‟s Integrated Dairy Co-operative Unit (Amul) was
established at Anand in Kaira district, Gujarat. Amul and the Greater Bombay Scheme
helped the dairy industry in India to develop at a faster rate emphaising development of
the techniques of processing and marketing under Indian conditions.
DAIRY DEVELOPMENT IN INDIA – UNDER FIVE-YEAR PLANS
The Government of India did not take up schemes, for development of dairying in
India in the initial stages. Dairying was treated only as a part of animal husbandry. In the
post-independence era, the dairying is recognized as a source of additional income to the
landless labourers and small and marginal farmers.
First Five-year plan (1951-56)
In the first five-year plan the dairy development programme was emphasized in a
small way, related to the supply of milk under hygienic conditions to big cities.
Second Five-year plan (1956-1961)
In the second plan, the importance is given to quality control, paying
remunerative price to milk producer and a reasonable price to the consumer and favoured
the organization of village level milk producers‟ cooperatives to supply milk to the city
dairies, creameries and milk drying plants. During this period the milk and milk products
sold is worth about Rs.11.32crores (Planning Commission, 1956).
Third Five-Year Plan (1961-66)

The plan emphasized the need to collect milk by a network of producers cooperatives
in villages and to organize the distribution of milk and manufacture of milk products
on cooperative lines. The working group organized by the Government of India to
review the working of dairy Industry. It suggested the organization of state level
federations of dairy cooperatives and a national level federation to conduct the works
of the state level federations. In 1965, as per the recommendation, the National Dairy
Development Board (NDDB) is established at Anand (Gujarat). NDDB is a
programme launching body and provide technical service on a non-profit basis
(Planning Commission, 1961).
Fourth Five-Year Plan (1969-74)
The Government of India and the NDDB organized the XIX International Dairy
Congress first of its kind in Delhi (1974). It aimed at the development of dairy as an
instrument of socio-economic change. This was in conformity with the Interim report
of the Agriculture Commission (1971).
Operation Flood was started in this plan with the aim to provide a reliable source
of income to millions of rural people-dependent on dairying.
Fifth Five-Year Plan (1974-78)
The fifth plan emphasized the need for diversifying agriculture evolving better
land-use pattern and assisting the weaker sections of the community, the programmes
of animal husbandry and dairying received considerable attention.

In pursuance of recommendations of the National Commission on Agriculture
(1976) for assisting the rural poor, 96 projects for rearing of cross-breed heifers were
taken up.
Sixth Five-Year Plan (1980-85)
The plan intended to lay special emphasize on project for cattle development
through genetic improvement and better health care. And the organization of producer
oriented cooperative marketing system (Mohan, 1989).
Seventh Five-Year Plan (1985-1990)
The plan aim was to provide infrastructure accelerated growth in livestock
production and to improve the socio-economic status of the rural population including
the small and marginal farmers, labourers, tribals and weaker sections. The country
has launched a technology mission for dairy cattle improvement through embryo
transfer technology (Dairy India, 1987).
Eight Five-Year Plan (1990-97)
As a result of liberalized industrial policy announced by the government of India
during the year 1991, import of technology and machinery has become easier. This
has resulted in the industry taking up manufacturer of new products and other high
value-added products, which are export oriented and import substitute items.
Ninth Five-Year Plan (1997-2002)
The realities of the post-GATT world are reflected in the report of the working
group on animal husbandry and dairying for the formulation of the plan. Further, the
focus of dairy development was shifted from its role as a source of supplementary
income to that of an viable enterprise to improve the quality of life of some 70 million
farm households, with no land or little land. The plan had also stressed the need to
provide credit access to the farmers. Simultaneously, steps have been taken for
upgrading and conserving proven breeds of cattle and buffalo. The plan was also
proposed to extend the benefit of operation flood to the non operational flood areas
through the integrated dairy development project and to popularized the Good
Manufacturing Practices (GMP) in dairy plants was also proposed for quality
upgradation (Dairy India, 1997).
Tenth Five-Year Plan (2002-07)
The plan document had given importance to establishment of milk chilling centres
in rural areas to connect the disposable milk processing and urban consumption.
Further the government of India and the state Government have initiated various
schemes to provide livestock health services and disease control.
Eleventh Five-Year Plan (2007-12)
The goal for dairy development in the Eleventh Five Year Plan would be to
achieve a growth rate of five per cent per annum. The Working Group on Animal
Husbandry and Dairying for the Eleventh Five Year Plan has an investment of
Rs.8000 crores in the following schemes like support to Co-operative Dairy
Development, support to private initiative to dairy development, enlargement of
venture capital fund, encouragement for R&D, promote consumers awareness on safe
milk and milk products, promote role of women in dairying, support professional
development and HRD in dairying, provide assistance for conducting studies and
provide timely information (Bhasin, 2007).

THE WHITE REVOLUTION
Operation Flood (OF) also termed as White Revolution has modernized India‟s
dairy sector, flooding metro cities with milk. India‟s White Revolution owes much to the
Anand Pattern of cooperative dairying. As of 2005, the cooperative network covered
some 12 million farmer members in over 115,000 village Dairy Cooperative Societies
(DCS) in 170 milksheds spread over 270 districts. These cooperatives are part of a
national milk grid which links producers with consumers in over 700 towns and cities
bridging seasonal and regional variations in milk availability. The institutional
infrastructure set-up at the village, district and state level (owned and operated by the
farmers) has progressively eliminated middlemen, enabling direct interface of producers
with processors. The OF impact has been significant in evoking interest among planners
around the world. Rightly, OF is lauded as quite possibly India‟s largest rural
development project as well as the world‟s biggest dairy development programme.
Operation Flood Programme
Apart from implementing five-year plan, the Government of India
implemented Operation Flood Programme for the development of dairying in three
phase (1970-96).
Operation Flood I (1970-81)
It was launched in 1970 following an agreement with the World Food Programme
(WFP). The overall objective of Operation Flood-I was to lay the foundation of a
modern dairy Industry in India.Funds for Operation Flood-I were generated by the
sale of Skim Milk Powder (SMP) and Butter Oil (BO). It achieved a peak milk
procurement of 34 lakh litres per day (LLPD) and marketing of 28 LLPD.

Operation Flood II (1981-85)
The background of the institutional framework of it is essentially comprised the
successful replication of the Anand pattern a three-tier cooperative structure of
societies unions and federations. Operation Flood-II helped to market milk in about
148 cities and towns, with a total population of 15 million, through a national milk
grid. The peak milk procurement increased to a level of 79 LLPD and milk marketing
to 50 LLPD.
Operation Flood-III (1985-96)
The third phase focused on strengthening the institutional management aspect of
dairy cooperatives and for productivity-enhancement inputs. Efforts were made to
expand infrastructure in all major markets, linking them to milk shields through the
National Milk Grid (NMG) to ensure year-round stable milk supply.
The NMG ensured the availability of milk to consumer and a remunerative price
to milk producers by leveling out regional and seasonal imbalances in supply and
demand. Further the marketing of indigenous milk product will form an important
part of the overall marketing strategy. Marketing facilities for milk and milk products
has been expanded to 100 LLPD by the end of third phase.
MILK PRODUCTION SCENARIO IN THE COUNTRY
The credit for the milk growth in India goes to the Government of India‟s five-
year plan and to the Operation Flood Programme implemented in three phase, all had
made India to stand ahead in the world milk production.

India has the highest milk production i.e. 84.5 million tonnes in 2001-2002
(Agricultural statistics at a glance 2002) in the world. It is also the largest consumer of
milk. Neither position is likely to change in the foreseeable future. India accounts for 15
per cent of world‟s milk production and its production is growing at the rate of four per
cent per year as against world milk growth rate of one point one per cent per year
(Deepak Jain, 2004).
The number of milk plants in co-operative and private sectors registered under
milk and milk product order (MMPO) have increased from 509 in 1996 to 628 in 2002.
Similarly the total milk handling capacity has increased from 55909 thousand litres per
day (LPD) to 72979 thousand LPD during the corresponding period [Chauhan, 2005].
Presently, the organized dairy sector process milk about 10-12 per cent of the total
milk production of the country. The percentage handling capacity have to be increased, to
meet the growing concern of the quality and safety of milk and milk products.
IMPORTANT FACTORS INFLUENCING MILK PRODUCTION
India lives in villages, 72 per cent of our population is rural and 60 per cent of the
population is engaged in agriculture. Seventy million farm families, one out of every two
rural households, is involved in dairying (Deepak Jain, 2004). The successful
implementation of the Operation Flood programme has created a vast country wide
network of co-operative system. The system is famous as the „Anand Pattern‟ essentially
structured the farmer into a two-tier co-operative structure. By the end of phase III of
Operation Flood, nine million farm families were linked to reach more than 600 cities
and towns (Deepak Jain, 2004). They have played a major role in transmitting urban
market consumer demand to rural producers, thus enabling them to receive almost 70 per
cent of consumer milk price. The income from milk helps them to meet day to day
expenses and in reducing rural income disparity.
According to the estimate of central statistical organization, the contribution of
livestock and fisheries sector to the agriculture sector was 28.3 per cent of the value of
the output. The contribution of these sectors to the total GDP was seven point three five
per cent during 2001-2002. The contribution of milk alone (Rs.103804 crores) was higher
than paddy (Rs.73964 crores) and sugarcane (Rs.28205 crores). This value in terms
indicates the significiant role of dairying in the socio-economic situation of our country.
Value of Output through Dairying
The value of milk and milk products produced in our county is substantially
higher than other products in the livestock sector. Comparing the milk group with the
meat group will exemplify this fact. The value of output through the milk is about Rs.
90358 crores as compared to the meat group which is about Rs. 20856 crores. Animal
sector yields products valued at Rs. 130233 crores which form part of Rs. 405576 crores
value of agricultural products as a whole.
Dairy Infrastructure
India possesses a wide and extensive network of dairy infrastructure with over
70000 dairy plants and 84000 dairy cooperatives.
Institutions and Handling Number / Capacity of

capacity Handling
Dairy Cooperatives 84289
Rural Milk Procurement 15780 tonnes/d
Milk Marketing 9534 tonnes/d
Processing Capacity (liquid) 27084 tonnes/d

Processing Capacity (powder) 1054 tonnes/d
Source: (Balaraman, 2003)
Figure 3: Dairy infra-structure in India
Dairy plants Number Capacity („000 L/d)
Cooperative 2123 28394
Private 403 32415
Others 63 12170
Total 678 72979
Source: (Balaraman, 2003)
Figure 4: Dairy plants operating in India
DAIRY PRODUCTION SYSTEMS
The most predominant dairy production system in our country is the crop-
livestock integrated farming system wherein the marginal, small, medium and large
farming households are engaged in land use dominated by field crops. Livestock play a
subsidiary and supplemental role.
Crops and livestock are mutually complementary in providing direct and indirect
inputs to each other. This is a time-tested, durable system evolved with low inputs and
characterized by multi-locational production and multifarious utility. The productivity is
obviously low, since the chief occupation of the farmers is crop production and resources
are limited to raise livestock under intensive conditions. Intensive dairy farming units are
now being established in many places where agriculture has already made a significant
break through. Punjab, Haryana and Western Uttarpradesh and certain parts of Gujarat
and Rajasthan are expected to take a lead in this regard. Peri-Urban system of dairying
has come up around large cities and towns which are need based due to large
requirements of milk and milk products. Here, of course, the animals are maintained
intensively and feeding is chiefly based on concentrates.
Traditional nomadic farming systems will have been a part of our socio-cultural
attributes with gradually declining due to non-availability of resource support especially
fodder availability through grazing lands.
The dairy production systems in our country are faced with a number of
constraints and limitation. Scientific inputs in terms of feeding, housing, health cover,
management and breeding have not reached the end users adequately. Extension and
transfer of technology measures continue to be the weakest link bringing about rapid
transformation in commercial and economic terms. A high production of milk needs to be
supported by proper collection machinery, transport, marketing, storage and cold chain
maintenance. Credit support and pricing are crucial aspects required to be resolved
processing, equipment, machinery and packaging are required to be linked up with the
production systems and the benefits of value additions need to be accrued to the
producers to have a positive impact on productivity and quality assurance to the
satisfaction of the consumers. Education and training have to be taken up in a large way
by gearing up the existing developmental machinery to the task involved.
DAIRY POPULATION AND PRODUCTIVITY
According to the FAO census (1998) there are 209.5 million cattle, 91.8 million
buffaloes, 56.5 million sheep and 120 million goats in our country. India ranks first in
respect of cattle and buffalo, second in goat and third in sheep. Nearly one-fourth (47.4
millions) of the cattle and about less than half of the buffalo (42.0 millions) population
consist of the milk stock, though the actual cows in milk at a given time may be about
12.5 per cent (27 millions) for indigenous stock, two to three per cent (5 millions) for the
crossbred stock and about 30 per cent (28.3millions) for the buffalo.
Buffalo contributes largest to the milk pool with about 46.5 million tones (55 per
cent) followed by indigenous cows with 18.30 million tones (24 per cent) and crossbred
cows, with 13.5 million tones (16 per cent) goats contribute about four point two million
tones (5 per cent) to the total milk pool. Right sizing of the dairy cattle population in our
country can go a long way in substantially improving production and productivity [
Balaraman, 2003].
CROSSBREEDING TECHNOLOGY
Milk production in the country has increased from one million tones during 1951
to 85 million tones during 2000-01. India is placed number one in milk production during
1998 after surpassing USA. The status attained by Indian dairy sector is, due to larger
number of milk animals rather than production per animal. The study say that the land
and livestock availability per 1000 persons have drastically decreased by 56 and 21 per
cent, respectively. This has urged the need for adoption of new technology to increase the
productivity of the bovine population without increasing their herd size.
Cross-breeding technology serve as an instrument to enhance milk production in
our country. As per 1992 census, there were 10.56 million cross-bred cattle of which 6.37
million were breedable. The growth rate of cross breeds, as compared to indigenous cattle
was very high (eight point one seven verses zero point seven two per cent) during 1982-
92 (Rao, 2002). Presently it is projected that in our country there are about 20 million
cross-bred cattle out of which 12 million are breedable. The share of milk from cross-
bred cows to total milk production was 15.8 per cent as compared to 27.7 per cent by
indigenous cows. Further, it is viewed that the number of cross-bred is highest in
Southern region (four point two million) followed by Northern region (two point six
million) Eastern region (two point one million) and Western region (zero point eight
million) [Francis Gnanasekar, 2005].
The reason behind of having highest number of crossbred in Southern region is
due to adoption of cross breeding programme, since beginning of the century and for the
reason it has more conducive climate conditions for crossbreds in some pockets of
Karnataka, Tamil Nadu and Kerala and involvement of collaborative agencies and
interest of farmers in promoting crossbreeding programme in these area.
The main objective of cross breeding is to increase milk production by two-to-
three fold and it has played a vital role in white revolution as well as making our country
number one in milk production. Still, there is large scope of further increasing milk
production of cattle of our country by crossing about 80 per cent non-descript cattle with
exotic breeds especially Holstein and Jersey in different regions.
Artificial Insemination (AI)
Artificial Insemination is the most important technique devised for the genetic
improvement, cost effectiveness, safety, flexibility and disease control of animals [Peters
and Ball, 1995]. The improvement of AI network under field conditions is the need of the
hour to disseminate superior semen from exotic crossbred bulls besides improving the
rate of conception from Artificial Insemination.
To create awareness about the crossbreeding of cattle among the farmers. The
extension workers perform the eminent role to take the improved breeding, feeding and
management role technologies for rearing crossbred animals from “Lab to Land” and
about the Artificial Insemination facility provided by the government at less cost is
another added advantage of this technology attracted the farmers.
DAIRYING IN POVERTY ALLEVIATION
Dairying is an occupation of farmers who are generally landless or have very
small cultivable land. The farmers keep three to four animals for producing milk, meat as
well as power source for agricultural purposes.
Dairying supplements agriculture, and it is more dependable and perennial source
of income than crop production.
According to census 2000, the work force associated with crop production, in
India has fallen from 74 per cent in 1961 to 54 per cent in 2000. As against this, the work
force in management of animals and milk production has doubled. This shift indicates
that dairying fortify the development and growth of the rural farm and non-farm sector
and rural employment.
Data also show that dairying supports the landless, and small landholder. The
distribution of livestock holding in India appears more equitable than land holding as
bottom 60 per cent of rural households own 65 per cent of all milking animals.
Contribution of livestock, during the last few decades, to the national Gross
Domestic Product (GDP) has increased from four point eight per cent in 1980-81 to about
five point six per cent in 1999-2000. So it is rightly said that dairy development has the
potential to alleviate poverty by providing employment to the family and income on a
daily basis [Khanna, 2005].
RURAL MILK PROCUREMENT

In rural India, milk production is largely a subsidiary activity to agriculture. Small
farmers and landless labourers usually maintain one to three milk animals. As a result,
small quantities of milk are produced widely spread all over the country. This situation
makes the task of milk collection complex.
In India, the following four system of milk procurement are popular:
 Directly from individual producers
 Through contractors
 Through cooperatives
 Through chilling centers
GRADING OF MILK
In India, cows and buffaloes are normally milked twice a day, once early in the
morning and then late in the afternoon. Milk is brought in producers‟ utensils to the
village-level collection centres twice. At collection centres, milk is weighed and a
representative sample is drawn for quality grading. Here the common tests carried out are
taste and smell, sediment, fat and SNF content and acidity test. These quick tests
generally form the basis for acceptance or rejection of milk. It is common to pay the
producer on the basis of fat content. The minimum standards for fat and SNF for
accepting milk are: cow milk-fat: four point five per cent, SNF: eight point five per cent;
Buffalo milk-fat: six per cent, SNF: nine per cent; mixed milk-fat: five per cent, SNF:
eight point five per cent[Aneja, 2002].
The collected milk is generally filled in cans for transportation to the chilling
centre or directly to the milk plant. Milk must be brought to the chilling / processing plant
within three hours of milking. Otherwise, a serious deterioration of milk can take place
that will affect the quality of milk products. Tropical conditions prevailing in India make
this problem all the more acute, since the ambient temperature acts favorably for
microbial growth leading to rapid deterioration in milk quality.
Grading of milk at the chilling centre
At the chilling centre, the total bacterial count is taken by the direct microscopic
method or the plate count method. The standard plate count test estimates the number of
viable bacteria present in milk. Bacterial content of milk is judged by the total bacterial
count and the presence or absence of coliforms and pathogenic bacteria.
Transportation of Raw and Chilled Milk
Ideally, milk should be transported to the dairy plant under chilled conditions
(40C) to prevent undesirable microbiological changes. In the Indian context, most of the
raw milk from rural collection centres is carried to the dairy plant in the following two
ways:
 Cans for transporting up to 30000 litres of milk per truck.
 Trankers for transporting chilled milk, between 2000 and 10000 litres per tanker.
Milk Reception at Dairy Plant
The handling of milk inside the plant is the key element in maintaining its quality.
On arrival, milk is graded for acceptance / rejection, weighed, sampled for testing, cooled
and stored under refrigeration until next unit operation for preliminary processing in the
dairy plant.
Grading of Raw Milk at Dairy Plant

For grading the raw milk at the plant, it is subjected to platform tests. They
include all those tests that are performed to check the quality of incoming milk from each
tanker on the receiving platform for a quick decision regarding its acceptance/ rejection.
Besides platform tests, the following important tests are also done to check the
quality of raw milk in terms of fat percentage and to detect adulterants.
Determination of Fat by Gerber Method
The fat percentage in milk is commonly used as the basis for payment for milk.
The data recorded is also used in the standardization of liquid milk.
MILK PROCESSING
The processing of raw or chilled milk received at the dairy plant is essential for
the following reasons:
 To meet the quality standards to conform to the law of the country. In India, it is
the Prevents of Food Adulteration (PFA) Act 1954 and Rules 1955;
 To comply with certification requirements of agencies like Agmark and Bureau
Of Indian Standards, International Standards Organization (ISO), Codex
Alimentarius Commission (CAC), prior to marketing products;
 To enhance shelf-life of the product; and
 To satisfy consumer taste.
The unit operations involved in preliminary processing of milk are:
 Filtration and clarification to remove foreign particles from milk;

 Separation and Standardization to separate milk into cream and skimmed milk
and or standardization of fat in milk;
 Recombination of fresh milk with reconstituted milk (skimmed milk powder +
water) and butter oil (or) unsalted butter for production of milk of varying
composition of fat and SNF to make different milk products;
 Homogenization to reduce the size of fat globules, so that they are evenly
dispersed instead of rising to form a cream layer on the surface; and
 Pasteurization to destroy almost all pathogenic and spoilage microorganisms.
Homogenization and Pasteurization are conducted in tandem. The
homogenizer is placed in the Pasteurization line between the regeneration and
final heater but before the holding section.
Pasteurization, according to the Bureau of Indian Standards (IS 6397:
1992), refers to the process of heating every particle of milk at a specified
temperature holding the milk at such temperature continuously for a specified
period in a standard and properly operated equipment and immediate cooling in
the same equipment after heating. Described below are some pasteurization
processes.
 Low –temperature, long-time (LTLT) batch / Vat pasteurization
In this outdated process, milk is heated to atleast 630C and held
continuously at that temperature for atleast 30 minutes and then immediately
cooled in the same equipment to 50C or less. This method of pasteurization is
particularly suited for small scale batch operations.
 High – temperature, short – time (HTST) pasteurization

The advantage of the HTST system is regeneration, which considerably
saves energy required for heating and cooling the milk. In the regeneration section
raw cold milk flows on one side of the plate while hot pasteurized milk on the
other side. Thus heat exchange takes place from milk to milk, and it saves 90 per
cent heat and refrigeration load.
HTST pasteurization of milk is the process of heating every particle of
milk to atleast 720C, holding continuously at this temperature for atleast 15
seconds in properly operated equipment and cooling rapidly to 40C .
 Ultra Pasteurization (or) Extended shelf Life (ESL)
In this process, fluid milk is heated at (or) above 137.80C for a minimum
of two seconds to destroy all pathogenic organisms. The ultra pasteurized (or)
ESL products are then packaged in clean aseptic atmosphere (Hepafiltered air),
using pre – sterilized containers and stored under refrigeration. These fluid
products have long shelf life under refrigerated distribution and storage.
 Ultra High Temperature (UHT) sterilization
In this system, the product is heated in the range of 135 to 1500C and held
at that temperature for one to six seconds and then cooled rapidly to the suitable
temperature before aseptic filling in multiplayer containers. The purpose of
sterilization is to maintain the quality of product and enhance its shelf life under
ambient temperature of distribution and storage [Aneja, 2002].
 Pasteurization
It is a heat treatment process applied to a product with the aim of avoiding
public health hazards arising from pathogenic microorganisms associated with

milk. Pasteurization is intended to bring about only minimal chemical, physical
and organoleptic changes in milk.
Note 1:
Pasteurization is intended to avoid public health hazards in the sense that,
although it may not destroy all the pathogenic microorganisms which may be
pressed, it reduces the number of harmful microorganisms to a level at which they
do not constitute a significant health hazard. Pasteurization also intends to extend
the keeping quality of the product by reducing the number of spoilage
microorganisms in the product.
Note 2:
The heat treatment should render the product phosphates negative.
The temperature time combinations given below have are equivalent and
minimum bacterial effect necessary for pasteurization. The combinations depend
on factors such as the nature of the product, solids content, viscosity, the initial
bacterial load, etc. For pasteurized milk and skimmed milk, the combination
employed is : 630C for 30 minutes or 720C for 15 seconds. The product is cooled
without delay 40C or below.
NEED FOR CLEAN MILK PRODUCTION
India is a country of villages where in 90 million people are engaged in dairy
sector spread over 5,00,000 villages [Ramchand, 2005]. About 90 per cent of the milk
being marketed come from the poorest segment of the rural population. Milk that is
collected from the villages is produced under the most unhygienic conditions. The time
taken from milk collection at the village level is very long, more than two hours each
morning and evening, as the number of milk producers is very large. Similarly, the
quantity of milk available per village is very small, while the agencies for its purchase are
so many. In this cut-throat competition for its procurement, the quality of milk is the first
casuality.
The collection of milk and its transport are highly expensive propositions. Milk
being a highly perishable commodity, especially during summer months, there is a very
rapid bacterial growth in the milk, which makes it sour and subsequently curdles. To
increase its shelf life, preservatives like caustic soda, urea, and formalin and so on,
though highly toxic, are extensively added at all levels. As a result the market milk is
devoid of original freshness, flavors and aroma. Even pasteurization or any other
processing technique cannot correct the degeneration already caused. Synthetic milk
containing urea, caustic soda is harmful to the heart, the liver and the kidneys. Caustic
soda acts as a slow poison for the heart patients and also disturbs the digestion of proteins
in the alimentary tracts. It is more dangerous and harmful for the pregnant lady and
neonates.
Thus, milk production under unhygienic and poor sanitary condition not only
makes it impalatable but also spoils the nutritive values of the milk and make it
poisonous in the vicinity of several kinds of rapidly growing pathogenic microbes. A
study cited that about three to ten per cent of the consumers has had family members
suffering from sickness related to adulterated or unhygienic milk [ Jagir singh, 2005].
To overcome the problems and to upgrade the milk quality the strategy suggested
is clean milk production.
Milk is an easily perishable commodity, there fore, as soon as milk is harvested it
has to be quickly preserved and processed. Our farmer has to be educated to follow some
of the basic rules of clean milk production.
CONCEPT OF CLEAN MILK PRODUCTION
“Clean Milk” is generally defined as “Milk drawn from the udder of healthy
animals, which is collected in clean dry milking pails and free from extraneous matters
like dust, dirt, flies, hay, manure, and so on. Clean milk has a normal composition,
prossesses a natural milk flavour with low bacterial count and is safe for human
consumption.”
Clean milk production results in milk:
 Safe for human consumption and free from disease producing microorganisms;
 High keeping quality;
 High commercial value;
 Can be transported over long distances and;
 High quality base product for processing, resulting in high quality products.
Clean milk production aims at improving the raw milk quality, in the milk cycle
from udder of the milk animal upto the dairy plant dock.
MANAGEMENT SYSTEMS FOR QUALITY AND FOOD SAFETY
The trade reforms initiated by the World Trade Organisation (WTO) have
transformed the business environment across the global, with an upsurge of new activities
in the industries and government in many countries. Suitable strategies to conform to

international quality norms are being implemented to make a dent in competitive markets
of unprecedented magnitude, which have emerged post – WTO. Industries have
recognized the importance of quality for entry into the competitive global markets.
This realization has its repercussions on the Indian dairy industry, an important
segment of food industry in India. Manufacturing a good dairy or food product is not
enough. The product must also be free from harmful additives, microbes and remain so
during its intended shelf life. Therefore, methods to be employed for quality assurance by
the food industry will have great deal of accuracy and sophistication depending on the
type of the production process and nature of resource available.
Excellence in food quality and safety has taken a tangible form with the advent of
ISO 9000 Quality management system and Hazard Analysis Critical Control Points
(HACCP) standards. ISO 9000 encompasses all the activities of a company to ensure that
it meets its quality objectives, while HACCP is directed towards ensuring food safety.
The ISO 9000 standards were brought by the International Organisation for
Standardization and the HACCP standards by the Codex Alimentarius Commission
(CAC). These standards have assumed importance world wide both as an essential
requirement to tap the market potential and as a marketable feature of the company. Since
the global market has become more demanding in terms of quality, safety and timely
delivery, installation of the ISO 9000 Quality Management System and HACCP by the
food industry is essential for getting a competitive international edge.
HACCP word is formed by the words Hazard Analysis and Critical control points.
A hazard is a physical, chemical or biological agent, in or, condition of food with the
potential to cause an adverse health effect. While, critical control point is a point (or) step
where a control can be used and a food hazard can be prevented, eliminated or reduced to
acceptable levels. HACCP is a system management approach to food safety management.
It is a system that identifies, evaluates and controls hazards that are significant for food
safety. HACCP was developed in the 1960‟s by the National Aeronautics and Space
Administration and the U.S. Army Natick Laboratories. Its main objective was to ensure
food safety for the manned space flight programs. HACCP was originally adopted for the
industrial sector but now it is also being used to ensure quality assurance in the food
production and processing. HACCP has been embraced and recommended by the
National Academy of Sciences, the International Commission on Microbiological
Specifications for Foods (ICMSF) and the International Association of Milk, Food and
Environmental Sanitarians (IAMFES) as a tool for assessing hazards and then controlling
them, step by step, rather than relying primarily on end-product testing.
Recognizing the importance of HACCP to food quality and safety control, the
twentieth session of the Codex Alimentarius Commission, held in Geneva, Switzerland
from 28 June to 7 July 1993 adopted guidelines for the application of the Hazard
Analysis Critical Control Point (HACCP) system (ALINORM 93/13A, Appendix II).
The revised Recommended International Code of practice-General principles of
Food Hygiene [CAC/RCP 1-1969, Rev 3(1997)] was adopted by the Codex Alimentarius
Commission during its twenty-second session in June 1997 and amended in 1999 with
the Hazard Analysis and Critical Control Point (HACCP) system and guidelines for its
application.
The Codex General Principles of Food Hygiene lay a firm foundation for
ensuring food hygiene. They follow the food chain from primary production through to
the consumer, highlighting the key hygiene controls at each stage and recommending an
HACCP approach wherever possible to enhance food safety. These controls are
internationally recognized as essential to ensuring the safety and suitability of food for
human consumption and international trade.
HACCP can be applied throughout the milk chain from the primary producer to
final consumer and its implementation should be guided by the scientific evidence of
risks to human health. Besides, enhancing product safety, implementation of HACCP can
provide other significant benefits also. In addition to this, the application of HACCP
system can aid inspection by regulatory authorities and promote international trade by
increasing confidence in safety and quality of milk and milk products [Anand, 2005].
INTERNATIONAL AGREEMENTS ON FOOD TRADE
The establishment of WTO is aimed at strengthening the world economy. Its
emphasis is on increasing trade investments and accelerating employment and income
growth throughout the world. It emerged from the Uruguay Round of Trade talks and is
the successor of the General Agreement on Tariffs and Trade (GATT). It governs the
world trade transactions including intellectual property rights through intergovernmental
agreements.
One of the main objectives of WTO is to mitigate obstacles to international trade.
In the context of international food trade, the agreements on the Technical Barriers to
Trade (TBT) and the Sanitary and Phytosanitary (SPS) measures have been brought
under the WTO. These agreements envisage application of international standards and
certification systems, and bring transparency in the national regulatory requirements to
facilitate international food trade. SPS is particularly applicable to food industry, and
adoption of HACCP standard under this agreement makes it mandatory for the food
industry to follow HACCP standards for international trade. A brief outline on the TBT
and SPS agreements is given below:
Technical Barriers to Trade (TBT)
The objective of the agreement is to prevent the use of technical regulations,
standards and conformity assessment systems as unjustified technical barriers to trade. It
basically provides that all technical standards and regulations must have a legitimate
purpose and that the cost of implementing them must be economically viable. Its
emphasis is on using standards as instruments for facilitating international trade. The
TBT agreement has a good number of measures designed to protect the consumer against
deception and economic fraud. It covers all types of standards including those for food
(except requirements related to SPS measures). Its food standards specifically relate to
quality, labeling and methods of analysis. Under the TBT agreement, each country has to
operate an enquiry point for answering all reasonable enquiries from member countries
and interested parties on technical regulations, standards and conformity assessment
systems.
Sanitary and Phytosanitary (SPS) measures
The SPS agreement aims at protecting (a) human or animal health from food-
borne risk; (b) human health from diseases carried by animals or plants; and (c) animals
and plants from pests or diseases. The agreement requires that member countries base
their national food safety measures on the corresponding international standards,
guidelines and other recommendations adopted by the Codex Alimentarious Commission.
With increasing international trade in foodstuffs, there is need for a uniform and
transparent system for inspection and certification procedures in all countries. This
system could only be developed by harmonization of Codex standards with the national
food safety standards of individual WTO members.
GOOD AGRICULTURAL AND ANIMAL HUSBANDARY PRACTICES
It ensure safe and sound processing of raw material that does not impart to the
food product undesirable contaminants such as pesticide residues, metallic impurities and
spoilage micro organisms. The GAAHP approach to quality management includes safe
use of authorized pesticides under actual conditions for effective and reliable pest control.
It encompasses a range of pesticide application levels up to the highest authorized one,
applied in a manner that leaves a residue in the smallest amount possible. In the
manufacture of food products, problems often arise due to the inherent variations in the
quality and composition of raw materials being used. These differences may be due to
agro-climatic conditions, cultivation and rearing techniques, and non-uniformity within
the inputs concerned. This poses additional burden on the system to ensure consistent
safe processing of raw materials.
GOOD MANUFACTURING PRACTICES (GMP)
Consumer satisfaction and economical production of wholesome food products
are key to the survival and growth of a food plant. Traversing the road to these goals
becomes easy if the focus is on factors of critical importance like plant conditions,
manufacturing practices, house-keeping, sanitary standards, personal hygiene and work
habits of employees and visitors. Taking care of these factors forms the core of Good
Manufacturing Practices (GMP). These are related to methods and control procedures
employed in a food plant for the manufacture, processing, packaging and storage of food
products with a view to guaranteeing their quality and safety to the consumer, observance
of GMPs will help the plant and to consumers‟ health and happiness through its
wholesome products. Besides, it will also be able to minimize production losses and
increase profits. The united states food and Drug Administration has published elaborate
guidelines for GMP.
CODEX ALIMENTARIUS COMMISSION (CAC)
The Food and Agriculture Organization (FAO) and the World Health
Organization(WHO) jointly established the Codex Alimentarius Commission (CAC) in
1962 to implement the joint FAO/WHO Food Standards programme. The aim of the
commission is to protect the health of consumers by ensuring observance of fair practices
in the food trade. It promotes coordination of work on formulation of food standards
undertaken by international governmental and non-governmental organizations. Adoption
of HACCP standards, formulated by CAC, under the sanitary and phytosanitary (SPS)
measures has made the HACCP system an instrument of food safety. It has become
incumbent on signatory countries of the SPS agreement to implement these standards.
ISO 9000 QUALITY MANAGEMENT SYSTEMS
With the changed focus on quality issues worldwide, the ISO 9000 standards
serve as a basis for ensuring consistent quality of goods and services as well as improving
productivity. Their aim is to harmonize quality management practices on international
scale and establish quality as a factor in global trade. These standards necessitate
organizations to reorient themselves to follow the process centred approach to quality
management system and place the system on a continual improvement mode.

The International Standardization Organization (ISO), a federation of national
standards bodies, set up in 1979, a technical committed on Quality Management Systems
to evolve international quality standards. After widespread consultations and
deliberations, an international consensus was reached on ISO 9000 series of standards,
which were brought out in 1987. Subsequently standards on supporting systems were
brought out to make ISO 9000 models more efficiently operational.
In a short time, the ISO 9000 has become an internationally recognized
benchmark for measuring quality of products in markets around the globe. Over 250000
enterprises are certified under ISO 9000 in over 100 countries, including India. With
experiences gained worldwide, the ISO committee on Quality Management Systems has
decided to launch the ISO 9000:2000 to meet the challenges of the new millennium.
The ISO 9000 system is looked at as a system with minimum quality
requirements. It can be thought of as a base level common denominator of quality system
requirements meant for all enterprises but not covering technology and competitive
elements. It builds a baseline system for managing quality. The focus, therefore, is on
designing a Total Quality Management System, one that complies with external
standards, but includes the specific requirement of industry and integrates elements of
competitiveness.
How good a company is organized is reflected in the quality of its products /
services. Quality in the product is impossible without quality in the process. Quality in
the process is impossible without the right organization, which is built on proper
leadership. Strong bottom-up commitment is the driver for all-product, process,
organization and leadership. These are steps to emulate the excellence model. The
millennium standard (ISO 9000:2000) has therefore changed the focus from procedure to
process. Its standards have been structured to provide a comprehensive model for
bringing consistency in operation and continual improvement.
TOTAL QUALITY MANAGEMENT (TQM)
It is defined as “that aspect of the overall management that determines and
implements the quality policy and as such is the responsibility of top management.”
Thus, TQM is an organizational concern and not a domain of any specialist or specific
function. TQM is not just a question of achieving standards but one of survival and being
strong all the time. Further more, the managerial responsibility is not just limited to
focusing on one particular aspect of the business but it has to be fully aware and in
control of all the activites, no matter how small these are.
The total quality management is necessary for establishing a culture of continuous
improvement by identifying waste and eliminating it, aiming for a zero-defect objective.
The internal objective of redefining the business operation changes the work culture of
the organization, where competitiveness is based on quality criteria, characterized by an
optimization of internal and external operations in pursuit of excellence.
INTEGRATION OF HACCP WITH ISO 9000
Integration of HACCP system with ISO 9000 brings synergy for better realization
of food safety objectives. ISO 9000 provides a sound framework for HACCP system to
be implemented through it. Both these management systems one designed to build quality
and another to build safety-are compatible with each other, and synergizing them will
provide strength to both. Thus, quality concerns and food safety concerns can be
addressed and interfaced with each other.

WORLD FOCUS ON INDIAN DAIRYING
The world dairy is zooming in on India for its rapidly growing markets that
promise the „moon‟. The changing international dairy trade pattern and the World Trade
Organization (WTO) offer to the Indian dairy industry an opportunity to take its due
place as an exporter. India‟s enthusiasm to integrate with the world economy is reflected
in technological upgradation, professional excellence and cost effective approach. It is
already recognized as a sourcing centre for exports of products and services to countries
in Asia-the power house of fastest growth in the world. India‟s central geographical
location in the region gives it an extra competitives edge.
The main reasons for the world focus on India are: one, the low-cost economy;
and, two, the continuing economic liberalization process initiated in 1991. Other
important factors include: low inflation rate; inexpensive labour; the presence of the
world‟s third-largest pool of technical manpower; the world‟s largest democracy; a well-
established independent judiciary free from government interference; and ease in
communication due to widespread use of English by the educated and the professional
class.
World production of milk is projected to rise to 665 million tones by 2010,
representing an average annual increase of one point five per cent, compared to an
annual average growth rate of one per cent during the 1990s. Milk production is expected
to grow in each of the major country groupings (developed, transitional and developing).
However, the largest increment is expected in the developing countries. In these
countries, output of milk is projected to rise by 71 million tones to reach 293 million
tonnes. consequently, the share of developing countries in world milk production is

expected to rise to 44 per cent (against 39 per cent in the base period and 32 per cent at
the start of the 1990s). Of the estimated 16 million tonnes increase (two point six per
cent) in the global milk production in 2005 over 2004, 75 per cent is accounted by three
countries-China (five point four million tonnes), India (four point one million tonnes) and
USA (two point seven million tonnes).
The world population is expected to increase by one point five per cent per
annum. Most estimates suggest that in 2025, it will be between eight point one and eight
point five billion. The projected growth of 80 to 90 million per year will occur primarily
in the developing nations, with Asia, at 54 million, experiencing the maximum. India will
account for 30 per cent of the growth in the population base of Asia [Gupta, 2007].
Livestock production in Asia is growing at a much faster rate than of any other
agriculture commodity, and it is expected that in a few years, it would account for nearly
half of the agricultural output in terms of value. In India, dairy production accounts for
about 70 per cent of the livestock produce. The demand for livestock products in
developing countries is projected to triple in next 20 years, offering opportunities to
farmers to improve their incomes.
Asia is the world‟s largest dairy consuming region. It is also the largest importing
region with over half of global imports of dairy products. Imports are continuing to grow
as demand, driven largely by rapid income growth and urbanization is exceeding supply.
At the same time, the Asian region is also expected to soon become the world‟s largest
production region. It indicates that the region‟s supply growth, at over five per cent per
year, is also dynamic. Ofcourse the situation varies significantly across the region.
LIQUID MILK
The liquid milk market has emerged as the most dynamic segment of the dairy
industry growing at 10 per cent. The urban dairy market, dominated by liquid milk, has
many exciting opportunities for the entrepreneur. It cannot be regarded as homogeneous,
but layered, with each layer offering its own rewards. In the organized sector, the share of
three per cent fat toned milk exceeded 50 per cent, four point five per cent fat
standardized milk stood at 33 per cent and six per cent fat full-cream milk was nine per
cent.
The cooperative and public sector dairies meet 40 per cent of the liquid milk
demand in class 1 towns (called cities):1 00 000 and above. The balance is shared by the
private organized and traditional non-organised sectors. Presently, only some 1,000 out of
5,000 cities and towns in India are served by its milk distribution network, dispensing
hygienically packed wholesome, quality pasteurized milk. Rising awareness about
hygienic standards and adulteration of loose milk has led consumers in urban areas to
switch to pasteurized packaged milk.
The organized sector is beginning to tap the demand for low-fat milk in 200 ml
sachets and is selling milk in small towns with an average demand of 10,000 litres per
day. The traditional dudhwala scores over the organized sector by selling small quantities
(100 ml to 250 ml) of milk, ensuring home delivery and giving milk on credit of one
month. It wins the consumers‟ confidence with the concepts of “malai” and “fresh” milk.
To compete with him, some cooperatives have initiated home delivery free of
cost[Chandan, 2007].
FOOD CONSUMPTION
Food consumption, over recent years, has diversified as a result of rapid progress
in the production of food. Self sufficiency in the availability of food grains was followed
by impressive growth in the production of milk and other livestock products. Overall,
national-level shortages have eased, as the production grew faster than the population and
demand. These developments have made India‟s food basket varied and rich, with milk
and milk products accounting for an increasingly larger share.
Consumer Expenditure on Food
As per the report of the 60th Round of the NSSO on “Household Consumer
Expenditure in India,” the all-India average Monthly Per Capital Consumer Expenditure
(MPCE) was Rs.565 for rural India and Rs.1,060 for urban India based on the
conventional schedule of enquiry comparable with the earlier rounds of NSSO. Thus,
average urban MPCE exceeded average rural MPCE by 88 per cent. However, urban
price levels being higher than rural price levels, the differential would be narrower in real
terms.
For rural India, average MPCE of Rs.565 comprised Rs.305 for food and Rs.260
for non-food. Food expenditure included Rs.103 for cereals and cereal substitutes, and
Rs.107 for milk and milk products, vegetables and edible oil. For the urban population,
average MPCE of Rs.1060 comprised Rs.441 for food and Rs.619 for non-food. In food
expenditure, only Rs.106 went towards cereals and cereal substitutes while Rs.165 was
spent on milk and milk products, vegetables and edible oil.

The decline in the share of food in total expenditure seen over the past several
rounds continued. The share of food was 54 per cent in rural areas compared to 64 per
cent in 1987-88 and 42 per cent in urban areas compared to 56 per cent during 1987-88.
Value of dairy output
The value of output from dairying, based on consumer prices, is estimated at
Rs.191,000 crores in 2005. The output of milk and milk products has increased faster
than the crops since the 1970s because of the wide-ranging initiatives taken by the
organized sector and the escalating demand for milk and milk products. The income
elasticity of demand for milk is one point three, with the tilt in favour of rural areas. So,
any rise in the family income will only give further boost to milk consumption.
Per Capita Availability
India‟s per capita availability of milk is not commensurate with its ranking as
world‟s top milk producer. However, the present per capita availability of 240 gm/day
(88 kgs/year) is much higher than the average for the developing countries in the
Asia/Pacific region, but lower than the world average. It is noteworthy that during the last
ten years, the per capita availability in India had gone up significantly despite the
booming population. By 2011, it is expected to reach 280 gm/day when the population
would be 1,178 million.
The minimum consumption recommended by the Nutritional Advisory
Committee of the ICMR is 220 gm/day (80.3kg/year). This was equaled in 2000-01 but is
considered low as compared to the nutritional recommendation of 283 gm per day by the
WHO. Various studies indicate that the top 10 per cent of India‟s population consumes
30 per cent of the milk produced, while the bottom 30 per cent manages with only 10 per
cent of milk. The rich class in India consumes milk largely as liquid or in the form of
products, while the lower income groups use it as whitener in tea/coffee [Chandan, 2007].
NUTRITIVE VALUE OF MILK
Food is the only source of energy for human beings. Our dietary sheet must
change according to our requirements of energy. There fore, selection of food–items
should be planned on the basis of their nutritive value.
Nutrients are necessary for the proper functioning of mental, physical, metabolic,
chemical and hormonal activities. Our body is like a machine that will repair and rebuild
itself provided proper nutrition is provided by way of food [Dairy planner, 2006].
The six categories of nutrients are protein fat, carbohydrates, vitamins, minerals
and water. Food energy is derived from three of them: Carbohydrates (four Kcal/g),
protein (four Kcal/g) and fat (nine Kcal/g). Although Vitamins and minerals contribute
no calories or energy to the body, they play an important role in regulating various body
processes and in forming structural components, such as calcium and phosphorous in the
bone. Water is a nutrient because it is vital for biochemical and physiological functions of
the body [Aneja, 2002].
Milk has been described as nature‟s nearly perfect food in that it provides vital
nutrients like proteins, essential fatty acids, vitamins, minerals and lactose in a balanced
proportion of easily digestible form. Nutritionists‟ recognize milk and its products as
important constituents of a well – balanced, nourishing human diet.
The health – oriented foods are commonly referred to as functional foods,
designer foods, pharma foods (or) neutraceuticals. However, dairy foods constitute a
family of natural functional foods due to their established health – related benefits.
For children, adolescent, elderly people, pregnant and nursing mothers, milk plays
an important role in meeting the requirement of many essential nutrients, and hence milk
is considered as a protective food. Milk helps to balance human diet by supplementing
good quality protein, calcium and vitamins particularly, vitamin A and riboflavin. In
addition, milk contains several bio – protective molecules that ensure health security to
humans.
Milk proteins have all the essential amino acids, which are lacking in vegetable
protein essential amino acids, are those which are not synthesized in human body. The
diet of an average Indian comprises 50 grams of protein per day. Protein from different
sources of food are not equivalent, one way of comparing them is by the Net Protein
Utilization value (NPU), which takes into account both the biological value (or) quality
of the protein and its true digestibility. The protein in egg white stands at the top with an
NPU rating of 98. Next comes that in milk with 83, followed by various meats (mutton,
beef, pork, chicken) with scores between 70 and 73; rice, six; wheat, 56; and most pulses
(dals), 45 to 50 (vinod K. Huria, 1997).
In case of vegetarians, milk is the only source of animal protein. Proteins of high
biological value are derived mainly from animal sources, and these are essential for
growing children, expectant and nursing mothers, old, infirm and hard – working people.
Figure 5 shows the recommended in take of milk for various age groups of
vegetarians and non-vegetarians by the Nutrition Expert Group of the Indian Council of
Medical Research (ICMR).
Age Non-
Sl.No Vegetarians
group Vegetarians
1 3-6 300
200
2 7-18 250
19 &
3 200 160
above
Source: (Agriculture Commission Report, 1976)
Figure 5: Recommended dairy intake of milk for various age groups
NUTRITIONAL BENEFITS OF MILK FAT
Compared to other fats and oils, milk fat is easily digestible. The digestibility of
milk is 99 per cent. These are absorbed directly unlike other dietary fats that have to be
emulsified by bile, pancreatic enzymes and intestinal lipases before they can pass through
intestinal well. The easy digestibility of milk fat makes it a valuable dietary constituent in
diseases of stomach, intestine, liver, gall bladder, kidney and disorders of fat digestion.
Milk is a rich source of vitamins
Milk is a rich source of vitamins. And it is one of the richest natural sources of
riboflavin (vitamin B2). A 250 ml serving of cow milk contains riboflavin equivalent to
50 per cent of the daily requirement of a pre-school child.
Indeed, milk is used as dietary ingredient for patients suffering from pellagra a
niacin deficience disease. For vegetarian, milk is a sole natural sources of vitamin B12, as
this vitamin is present only in animal foods. Vitamin A deficiency is a major cause of
widespread blindness among children in India. A 250 ml serving of cow milk contain
vitamin A sufficient to meet 75 per cent daily vitamin A requirement of pre-school child.
Milk is a richest Natural Source of Calcium

Recent research has shown that poor nutritional status with respect to calcium is
related to diseases like Osteoporosis, hypertension and colon cancer. The hypertensive
patients have shown significant reduction in blood pressure in response to increased
calcium intake. The effect of calcium on blood pressure is mediated by (i) increase in
urinary excretion of sodium, (ii) preventing the rise in vitamin D hormone, which
increases blood vessel resistance, (iii) relaxing smooth muscle cells which lines the blood
vessels, (iv) suppressing the reninangiotensin system and (v) increasing production of
endothelial relaxing factors.
Introduction of increased dietary calcium through dairy products has been shown
to reduce incideness in colon cancer and hyper-proliferation in the colonic mucosa in
rodents. Calcium produces these effects by neutralizing deconjugated bile acids and free
acids, thereby removing their mitogenic / toxic influence.
Milk and dairy products are the most important source of calcium in readily
available. A 250 ml serving of cow milk contains calcium equivalent to 60 per cent of
ICMR‟s Recommended Dietary Allowance (RDA) for adults. Equal amount of buffalo
milk contains 95 per cent of calcium RDA for adults.
Milk has Cholesterol-lowering Factors
Experiments with volunteers have shown that cholesterol levels do not rise when
as much as litres of milk is consumed daily. On the contrary the cholesterol level is
reduced. It has been suggested that the regular intake of milk keeps blood vessels healthy.
Thus, Milk occupies a unique position among foods the complete food for infants,
good supplementary food for people of all ages and essential protective food for sick and
invalids. Milk proteins are highly nutritious that effectively supplement poor quality
vegetable proteins in mixed diet. Milk is a richest natural source of calcium in the best
available form.
Milk cheese, curd, paneer are animal products, but they are vegetarian. A
vegetarian is one who does not consume any animal product (or) by – product from a
slaughtered animal. As dairy products are taken from living creatures, they are classified
as vegetarian. It is a strict vegetarian or „vegan‟ that does not consume any animal
product, either from a living or slaughtered animal [Acharya, 2005].
Inclusion of milk in vegetarian diet is essential to balance it with respect to
nutrient. Planning a balanced diet without incorporating milk is not only difficult
proposition but also will incur the risk of making diet bulky and excessively rich in
calories. Beside this, milk contains several molecules that provide protection against
cancer, cardio vascular diseases, hypertension, various types of cancer, osteoporosis, and
so on [ Kansal, 2004].
Infant and Child Nutrition
Mother sustains her offspring through milk, which forms the basis of food in the
human cycle. The baby is recommended to be breast fed. Until it is weaned and thereafter
given cow/ buffalo / sheep / goat or similar domesticated mammals.
The infants calorie and protein requirements per kilogram of body weight are very
much higher, about thrice that of adults, and the blending of foods for infants and very
young children is hardly possible, the high quality of natural milk protein is a decided
advantage. Many digestive functions are still at a rudimentary stage in children, and milk
becomes important for them. Stomach volume is limited and food digesting capacity is
quite small, which means that large volumes of liquid are required.
Thus overall, it could appear that milk as a protective food is essential to infant
growth and well being [Vinod K. Huria, 1997].
SWOT ANALYSIS OF DAIRY INDUSTRY
As is well known, any industry in final analysis, has its strengths, Weaknesses,
Opportunities and Threats (SWOT). This analysis is subject to change from time to time.
In case of the Indian dairy industry, this analysis looks very hopeful as it was in the past.
Let us look at its salient features.
STRENGTHS
Demand profile: Absolutely optimistic with the growth in population and increased
incomes.
Margins: Very reasonable, even on packed market milk. For milk products, especially
traditional milk products, higher margins are possible for those who ensure quality.
Flexibility of product mix: Tremendous. Milk is known for generations to offer variety
of products. The potential is yet to be fully exploited. A dairy enterprise can keep on
adding to its product line.
Availability of raw material: Abundant. There exists a vast scope to procure more milk
in the organized sector.
Technical manpower: Professionally-trained managers and technicians available to meet
the challenges.
Technology transfer: Newer technologies for product and process know-how available
with national-level institutions.

WEAKNESSES
Perishability: With hours after milking the animal, milk has to be processed. Mechanical
chilling, pasteurization, UHT processing overcome this weakness partially. Surely, many
new processes will follow to improve milk quality and extend its shelf life.
Low Productivity: In spite of various programmes implemented to raise the productivity
of milch animals, we continue to have millions of cows and buffaloes which have very
low yields. Theoretically, there is little control over milk yield. However, increased
awareness of Artificial Insemination, genetic improvement, scientific feeding and
properly managed animal husbandry practices, coupled with higher income to rural milk
producers, should automatically lead to improvement in milk yields.
Procurement logistics: Smaller quantities of milk being available over a wide area with
woes of bad roads and inadequate transportation facilities make milk procurement
problematic. But with the overall economic improvement, these problems would get
solved.
Problematic distribution: Yes, all is not well with distribution. The ever-rising cost of
diesel has increased the distribution costs alarmingly. As a result, milk and products are
distributed in areas that are uneconomical to cater. But then if ice creams can be sold
virtually at every nook and corner, why can‟t we sell dairy products? Moreover, it is only
a matter of time before we see the emergence of a cold chain linking the producer to the
refrigerator at the consumer‟s home! Milk products can be transported over long
distances by plying large capacity-fully used-vehicles, preferably refrigerated or atleast
insulated, which can also carry other products which are compatible with milk.
Competition: Competition is becoming tough. But then competition has to be faced as a
ground reality on merit. The market is large enough for newcomers to carve out their
niche.
OPPORTUNITIES
It requires a visionary to see the opportunities of not only today but tomorrow. As
Dr. Kurien, the greatest of our dairymen, has observed, ”Failure is never final and success
never ending.” He entered the industry when there were no opportunities, only threats. If
Indian dairying entrepreneurs are looking for opportunities, the following areas must be
tapped:
Value addition: Innovation is the key word to add value into a product-in its
composition, health benefits, packaging and presentation. Following are potential areas of
value addition:
 Products like shrikhand, paneer, khoa, lassi, ice creams, flavoured milk,
dairy sweets, and so on offer good flexibility in the market place along
with opportunities in brand building.
 Mass production of indigenous milk-based sweets in dairy plants can tap
the growing demand for them.
 Cultured products like dahi, yoghurt and cheese lend further strengths.
 There are opportunities in milk proteins through casein and caseinates and
other dietary or nutraceutical grades of proteins for domestic marketing
and exports.
 Infant foods, geriatric foods, designer milk or milk products for a niche
market like low calorie, low fat, cholesterol free, sugar free, and so on.
Export potential: Efforts to exploit export potential are on. Already several
organizations in the cooperative and private sectors are successfully exporting to
Bangladesh, Sri Lanka, Nigeria and the Middle East. As world trade is opening up,
opportunities will increase tremendously for the export of dairy products if quality
standards are met.
THREATS
The non-organized sector: It occupies a pride of place in the industry. An organized
consumer awareness campaign is required to tackle this threat and educate consumers
about the safety of milk and milk products they consume. This should see a steady
decline in the importance of milk vendors.
At the Government level, strict vigilance is required to curb the import of
substandard, low-priced milk products as well as precautions against their dumping
which can otherwise create a big threat.
The study of this SWOT analysis shows that „strengths‟ and „opportunities‟ far
outweigh „weaknesses‟ and „threats‟. Further, strengths and opportunities are
fundamental and weaknesses and threats are transitory. Any investment idea can do well
with three essential ingredients: entrepreneurship (ability to take risks), innovative
approach (in product development and marketing), and values (quality, service, ethics).
The Indian dairy industry, following its delicensing, has been attracting a large
number of entrepreneurs. Their success in dairying depends on factors such as an
efficient yet economical procurement network, hygienic and cost-effective processing
facilities and innovativeness in the market place. All the time keep reminding yourself:
“Benjamin Franklin discovered electricity, but it was the man who invented the meter
who really made the money!”
MARKET POTENTIAL
India‟s dairy market is multi-layered, shaped like a pyramid with the basemade up
of vast market for low-cost milk. The narrow tip at the top is a small but affluent market
for western type milk products. The bulk of the demand for milk, however, is among the
poor in urban areas (bottom of the pyramid) whose individual requirement is small.
Nevertheless, it adds up to a sizable volume of millions of litres per day in major urban
centres where lies the immense growth potential. Presently, barely 1,000 out of 5,000
cities and towns are served by the milk distribution network of the organized dairy sector.
The effective milk market is largely confined to urban areas, inhabited by over 25
per cent of the country‟s population having a household income of Rs.5000. This is a
large target group for branded milk and milk products. An estimated 50 per cent of the
total milk produced is consumed here. In the next five years (by 2011), the urban
population is expected to touch 360 million-a growth of about two point five per cent.
The projected age distribution of Indian consumers shows a steadily rising percentage in
the 20-34 age group which is most receptive to experiment new products. This age group,
which was about 25 per cent of the total population, is growing steadily. As demographic
changes take place, there would be increasing number of nuclear families and working
women in urban India. The emergence of organized food retail chains/super markets will
also lead to growth in the sale of packaged dairy and food products. The expected
phenomenal rise in urban population would be a boon to Indian dairying.

Of the three A‟s of marketing-availability, acceptability and affordability, the
Indian dairying is already endowed with the first two. People in India love to drink milk.
Hence no efforts are needed to make it acceptable. Its availability is not a limitation either
because of the ample scope for increasing milk production, given the prevailing low
yields from dairy cattle. It leaves the third vital marketing factor- affordability. How to
make milk affordable for the large majority with limited purchasing power? That is the
essence of the challenge. One practical way is to pack milk in small quantities of 250ml
or less in polythene sachets. Already, the glass bottle for retailing milk has given way to
single use sachets which are more economical. Another viable alternative is to sell small
quantities of milk powder in mini-sachets, adequate for two cups of tea or coffee.
Two key elements of marketing strategy are: Focus on strong brands; and product
mix expansion to include traditional milk-based sweets and other delicacies, UHT milk,
cheese and ice creams. The changing marketing trends will see shift from generic
products to the packaged quasi, regular and premium brands. The national brands will
gradually edge out the regional brands or reduce their presence. The brand image can do
wonders to a product‟s marketing as is evident from the words of Perfume Princess Coco
Channel: “In factory, we pack perfume; in the market, we sell hope!”
New emerging dairy markets will focus on:
(a) Food service institutional market: It is growing at double the rate of consumer
market;
(b) Defence market: An important growing market for quality products at reasonable
prices;
(c) Ingredients market: A boom is forecast in the market of dairy products used as
raw material in the pharmaceutical and allied industries;
(d) Parlour market: The increasing “away from-home” consumption trend opens new
vistas for ready-to-serve dairy products which would ride piggyback on the fast
food revolution sweeping urban India.
Rapidly rising income in low and middle-income groups has resulted in demand
for livestock products growing at six to eight per cent year. If the domestic livestock
industry meets this demand, it will double in size every 10 years and its share in
agricultural GDP will grow rapidly, soon accounting for over half of the agricultural
GDP.
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148. Patel, P.R. (2003). Policy and regulation – influencing milk producers. Indian
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149. Ashish Kumar Banerjee. (2006) Marketing in the 21st century. Indian
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Kingdom. Indian Dairyman, XLVII (5), 61.
151. Katre, B.C. and Sita Ram Prasad. (1996). Milk products marketing and
distribution system. Indian Dairyman, XLVIII(6), 23-28.
152. Kakkappan, A.K. (1999). A study of milk industry economy in Tiruchirappalli
district, Tamil Nadu. PH.D., THESIS. Bharathidasan University.
153. Chennegowda, H. (2002). Liquid milk marketing – opportunities and threats.

154. Rajiv Dhar. (2002). New Packaging Materials and Packaging Technology for
dairy products. Indian Dairyman, 54(2), 72.
155. Sudhir Krishna. (2002). Aseptic Technology: profit through partnership. Indian
156. Sanjaj Panigrahi. (2003). Status and prospects : marketing and networking.
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158. Veena Mathur. (2004). Challenges of packing fresh milk in polytheylene
pouches. Indian Dairyman, 56(10), 90-92.
159. Vishal Gupta. (2005) Marketing strategy of dairy industry. Dairy
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Irrigation. GOI. New Delhi.121.
162. Second Five-Year Plan. (1956). Planning Commission. GOI. New Delhi. 125.
163. Third Five-Year Plan. (1961). Planning Commission. GOI. New Delhi. 355.
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165. Ninth Plan Proposals. New Delhi: Dairy India 1997. 11.
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167. Operation Flood: The Third phase. New Delhi: Dairy India 1997. 147-151.
168. Agricultural Statistics at a Glance 2002. and Animal Report 2001-2002.
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169. Deepak Jain. (2004). Emerging Dairy Countries: The Indian Perspective. Indian
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170. Chauhan, A.K., Kalra, K.K., Raj Vir Singh. and Raina, B.B. (2005).
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171. ibid.
172. ibid.
173. Balaraman, N. (2003). Status and prospects-milk production system. Indian
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174. Khanna, R.S. (2005). Sustainable Development of the Dairy Industry in Asia-
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175. Aneja, R.P., Mathur, B.N., Chandan, R.C. and Banerjee, A.K. (2002).
Technology of Indian milk products. Dairy India Year Book 2002. Delhi: A
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176. ibid.
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P.K., Chopra, R.C. and Balaraman, N. (2005). HACCP Principles for Tropical
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179. ibid.
180. Chandan, R.C. (2007) Dairy Industry: opportunities for FDI. New Delhi: Dairy
181. ibid.
182. ibid.
183. Chocolate Milk could be Key to Longevity, International news, Dairy planner ,
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184. Vinod K. Huria. and Achaya, K.T. (1997). Milk as quality food. Dairy India.
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185. Agriculture Commission Report. (1976). No.VII. Ministry of Agriculture and
Irrigation. Government of India, New Delhi. 2
186. Kansal, V.K. (2004). Milk : A Nutritious and Protective Food, Good for
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187. Rao, S.K. (2002).Breeding strategies for sustained milk production in small
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188. Francis Gnanasekar, I. and Revathi, T. (2005).Enhancement of milk production
by crossbreeding technology. Journal of the Association of Economist of
Tamilnadu. XVII(1), 146.

189. Peters, A.R. and Ball, P.J.H. (1995). Reproduction in cattle. Second Edition.
Block well science Ltd, Oxford.
190. Ramchand. and Sapna Jarial. (2005).Clean Milk production : Dairy farmers way
to Empowerment. Indian Dairyman, 57(8).67-68.

CHAPTER III
PROFILE OF THE STUDY AREA AND DAIRY INDUSTRY
Tiruchirappalli, commonly known as Tiruchi or Trichy. Formerly also
pronounced as Trichinopoly (under British rule) is the fourth largest city of the Indian
state of Tamil Nadu (after Chennai, Coimbatore and Madurai). It is situated in the centre
of the state, on the banks of the Cauvery River. Trichy is a corporation and the
administrative headquarters of Tiruchirapalli District.
Trichy encompasses Srirangam, a Vaishnavite temple and the biggest functioning
Hindu temple in the world. Trichy also emcompasses "ThiruAnaikka"
(ThiruvAnaikkaval), one of the five main abodes ("Panchaboodha Sthalam") of Lord
Shiva. ThiruvAnaikkaval is the House of Water. Chandrasekhara Venkata Raman was
born in Thiruvanaikaval and his house has been preserved as a museum. There
Tiruchirapalli town was named after a three headed demon ["Trishira"] called "Chira"(the
son of Ravana) who performed penance at the Siva temple here and obtained
boons.Legend has it that Shiva was worshipped by the demon ruler Tirisiran, hence
Tiruchirappalli, Tirisirapuram etc. Also, since the three peaks here on this hill are
occupied by Shiva, Parvati and Vinayaka, the name Tri-Shikharam or Tirisirapuram came
into being. Legend has it that Shiva in the guise of a woman (mother) attended to the call
of a devotee in labor, hence he is called as Matrubhuteswarar.
There is yet another belief about the origins of the name Trichy. Apparently the
name started out as Thiru Javvandhipuram (Place of Marigold flowers; javvandhi, the
Tamil name for the flower Marigold which grew(and still does) in abundance in and
around this region and the word puram refers to a place of dwelling) which over time
became corrupted to Trichy.

HISTORY
TIRUCHIRAPPALLI IS HOME TO MANY HISTORIC TEMPLES, MONUMENTS,
CHURCHES AND MOSQUES. URAIYUR (ALSO PRONOUNCED AS ORAIYUR)
WHICH IS THE OLD TIRUCHY HAS A LONG TRADITION. WITH OVER 2,500
YEARS OF KNOWN HISTORY, IT WAS THE CAPITAL OF THE EARLY CHOLAS.
THE OLDEST MAN MADE DAM KALLANAI WAS BUILT BY KARIKALA CHOLAN
ACROSS THE RIVER KAVERI ABOUT 10 MILES FROM URAIYUR. IT WAS AN
IMPORTANT TOWN IN THE DAYS OF THE LATER CHOLAS, NAYAKS AS WELL AS
DURING THE EARLY DAYS OF THE BRITISH EAST INDIA COMPANY. THE
MADURAI NAYAK RULERS CHANGED THEIR CAPITAL FROM MADURAI TO
TIRUCHIRAPALLI AND BACK SEVERAL TIMES. THE CONQUEST OF
TIRUCHIRAPALLI BY THE BRITISH EAST INDIA COMPANY MARKED A MAJOR
STEP IN THE BRITISH CONQUEST OF INDIA.
One famous landmark in Tiruchirapalli is the Rock Fort, a huge outcrop of rock of
83 metres high, which is the only outcrop in the otherwise flat land of the city. For this
reason, the city is also called Rock City. On top of the rock is the Ucchi Pillayar Koil, a
temple dedicated to the Indian God Vinayaka (Ganesha), from where one can enjoy a
panoramic view of Tiruchirapalli. The temple was also used as a military fort by the
Nayaks for some time. On the Southern face of the rock are several beautifully carved
cave temples of the Pallava period. On to the Eastern side is Sri Nandrudayan Vinayakar
Temple, with the powerful Lord Ganesha as the main deity. A big sized Ganesha and
other rare deities can be seen in this temple,which hosts festivals every year during the
Vinayaka Chathurthi ( birthday of the Lord)and many carnatic musicians and stalwarts
have given musical concerts over 70 years in this famous shrine.Around the rock temple
is a busy commercial region, specializing in textiles, known as Chatram. The Main
Guard Gate is flooded on festive occasions such as Diwali,{Ramzan},(Bakrid) Christmas
and Pongal. Trichy is famous for the number of churches in India . It has the most
number of chapels in India. The most famous of them are The Holy Redeemer's Church,
Lourdes Church and The Cathedral.
Trichy also famous for Arcot Nawab masjid (one of the oldest one) with a huge
water storage tank (Ahil). Fort also still exist nearby masjid. This city is famous for
various culture where all the faith people enjoy the peace and prosperity.
TOPOGRAPHY/GEOGRAPHY
TRICHY/TIRUCHIRAPALLI IS SITUATED IN THE CENTRE OF THE INDIAN
STATE OF TAMIL NADU. THE TOPOLOGY OF TRICHY IS FLAT EXCEPT FOR THE
RIVER CAUVERY RUNNING WNW-SSE THROUGH THE CITY. IT LIES AT AN
ALTITUDE OF 78 M ABOVE SEA LEVEL. THE RIVER-CHANNELS UYYAKKONDAN

CARRIES MUCH OF TRICHY'S SEWAGE. A SEWERAGE SYSTEM,
CONSTRUCTED RECENTLY COVERS THE NEWLY ADDED AREAS OF
TIRUCHIRAPPALLI MUNICIPAL CORPORATION AND CONNECTS WITH A
SEWAGE TREATMENT CENTER LOCATED IN THE PERIPHERY OF TRICHY AT
PANJAPPUR. IT IS TRAVERSED BY THE RIVER CAUVERY AND THE RIVER
COLEERON/KOLLIDAM, THE LATTER FORMS THE NORTHERN BOUNDARY OF
THE CITY. THERE ARE FEW HILLS LOCATED WITHIN THE CITY, THE PROMINENT
AMONG THEM ARE GOLDEN ROCK, ROCK FORT, AND THE ONE IN
THIRUVERAMBUR. THERE ARE RESERVE FORESTS ALONG THE RIVER
CAUVERY, LOCATED TO THE WEST/NORTH-WEST OF THE CITY. THE
SOUTHERN/SOUTH-WESTERN PART OF THE DISTRICT IS DOTTED BY
SEVERAL HILLS WHICH ARE THOUGHT TO BE AN OFFSET OF THE WESTERN
GHAT MOUNTAIN RANGE AND THE SOIL HERE IS CONSIDERED TO BE VERY
FERTILE.
Because of the river Cauvery/Coleroon flowing through the city/district, the
Northern part of the district is rich in flora. There are also small pockets of forest cover
located in the Southern/South-Western part of the district.

CLIMATE
The climatic conditions in this city is ideal for agriculture and indutries. There are
only two seasons experienced in this city. Almost for seven to eight months the climate is
hot. The rainy season starts during mid of October or early November and may extend till
early or mid January.
The summer is hot(during the Agni Nakshatra season). The rainy season is not
very consistent in Trichy. From 2002 to 2005, the city received very little rainfall.
During the year 2005, November, the city faced a serious flood. The heavy downpour of
rain, abundant water in the cauvery and all subordinate rivers attributed to the flood.
Almost all the water bodies in and around the city overflowed. The previous record of
such a flood dates back to 1999. Summer temperature 41.10°C (Maximum) 36.40°C
(Minimum) Winter temperature 21.31°C (Maximum) 18.60°C (Minimum)
DEMOGRAPHICS
As of the 2001 census, Trichy or Tiruchirapalli, had a population of eight point
four seven lakhs. Males constitute 49.97% of the population and females 50.03%. Trichy
has an average literacy rate of 91.45%(official figure). Male literacy is 94.17% and
female literacy is 88.73% with nine point five nine per cent (official figure) of the
population under six years of age.The city's population is predominantly Hindu, along
with a sizable Christian and Muslim populations. Sikhs are also present in smaller
numbers.
Tamil is the official language. The dialect of the Tamil language spoken here is
often 'Neutral', although a tint of "Kongu Tamil", Madurai Tamil may be heard as one
travels through the Western and Southern boundaries of the district/city. One may also
hear elangai/srilankan Tamil widely spoken in some pockets of the city. Other languages
spoken here include Telugu, Malayalam and Hindi. Once, Tiruchirapalli served as the
headquarters of the erstwhile South-Indian Railways(which was renamed later as
'Southern Railways' with Madras/Chennai as the headquarters) during the pre-
independence era for a few years. Anglo-Indians(many of them who worked in the
'South-Indian Railways') started settling in 'Golden Rock-Township' and 'Crawford'
located within the city.
ECONOMY/INDUSTRIES
THERE ARE SOME MAJOR INDUSTRIAL HOUSES IN TRICHY, FEW AMONG
THEM ARE BHEL (BHARAT HEAVY ELECTRICALS LIMITED) WHICH IS A
PROMINENT NAVARATNA COMPANY (HIGHLY PROFITABLE PSU), ORDNANCE
FACTORY (HAPP AND SMALL ARMS PROJECT), RAILWAY WORKSHOP AND
DALMIA CEMENTS. THE PLANT OF BHEL IN TRICHY, MANUFACTURES HIGH
PRESSURE BOILERS. THERE ARE A LOT OF BHEL-GROOMED SMALL TO
MEDIUM SCALE INDUSTRIES NOTABLE IN THE NATIONAL AND INTERNATIONAL
MARKET LIKE CETHAR VESSELS, VEESONS ENERGY SYSTEMS, ANAND
ENGG, GB ENGG,PRADEV SOFTWARE SOLUTION & MINDCHAIN
SOLUTION,SATRON TECHNOLOGIES , GB ENGG ETC. TRICHY ALSO HAS

EXCLUSIVE ROTARY AIRPREHEATER MANUFACTURER NAMELY GEECO.
BEING A COMMERCIAL HUB, TRICHY STANDS FIRST WITH 70% IN INDIA, IN
BOILER & WINDMILL MANUFACTURING AND FABRICATION. NUMBER OF SMALL
SCALE INDUSTRIES HAVE ALSO SPRUNG UP IN TRICHY, MOSTLY AROUND
THUVAKUDI AND MATHUR. LEATHER TANNERIES ARE LOCATED ON THE WAY
TO PUDUKOTTAI. VIRALIMALAI, CONSIDERED AN INDUSTRIAL SUBURB ON
MADURAI ROAD HAS THE FACTORIES OF TVS, INDIA BUS BODY BUILDING
UNIT, MM FORGINGS. ALSO IN THE SAME AREA ,SANMAR GROUP OF
COMPANIES ARE LOCATED. A VERY BIG STEEL FOUNDRY 10000 TONS PER
ANNUM IS IN OPERATION AND ONE MORE FOUNDRY IS COMING UP. APART
FROM THIS THREE MORE COMPANIES CATERING TO CHEMICAL AND PROCESS
INDUSTRIES FIND PLACE HERE. ONE CAN ALSO FIND AGRO-BASED
INDUSTRIES AROUND TRICHY CITY, ESPECIALLY ALONG COIMBATORE ROAD
AND CHENNAI. MANACHANALLUR, FAMOUS FOR ITS NUMEROUS RICE MILLS
SUPPLYING POLISHED RICE ALL OVER TAMIL NADU AND OUTSIDE IS LOCATED
ABOUT SEVEN KM FROM MAIN GUARD GATE.
The economy of the city is driven to a certain extent by IT/ITES companies,
encouraged by the support from state government. A dedicated stretch of land has been
identified and developed to increase the state's share in national IT/ITES exports.
TRANSPORTATION/CONNECTIVITY
Roadways
Trichy is well connected to various parts of Tamil Nadu, by private and public
bus services. The Theppakulam - chathram bus station, near Rock Fort temple, runs local
and mofussil (city-to-city) bus services which connect people to nearby towns and
villages. Bus services are frequent, once every two to five minutes. Trichy is also well-
connected to the other cities of Tamil Nadu, Southern Karnataka and Kerala through
private charter buses.
The central bus station runs long distance services to major cities of the State and
South India such as Chennai, Madurai, Coimbatore, Bangalore, Tirunelveli, Nagercoil
and Tirupathi. One can get buses from Trichy to almost any part of the state, due to its
geographical location in the center of Tamil Nadu.
On the road infrastructure front, with the completion of highway projects in Tamil
Nadu state, Trichy will have four track highways from the city branching to destination
Chennai, Madurai, Nagappattinam and Coimbatore. The four-laning of Chennai-Trichy
should be completed in mid 2008 and also Trichy-Madurai would be completed at the
same time. The widening of Trichy-Tanjore, Trichy-Karur and Trichy-Rameswaram
should also be completed in two years.
Tamil Nadu Government introduced the Share -Auto scheme in the year 2001.
Trichy's local traffic is mostly contributed by this Share-Auto's. The city has a very wide
network of city buses and mini buses. The State-run DCTC town buses cover areas from
Trichy to Pudukkottai, Manapparai, Musiri, Viralimalai and Vallam.
Railways
Trichy is the hub of Southern Railway's operation to connect this central part of
Tamil Nadu to various parts of India, notably regions in Kerala, Andhra Pradesh, Bengal,
Maharashtra, Karnataka, Delhi, and Madhya Pradesh. Trichy Railway Junction has five
branches leading to Madurai, Rameswaram, Coimbatore, Tanjore and Chennai and
currently there are seven platforms. Currently few of them are Meter gauge tracks being
phased under Project Unigauge out as of 2006. After the completion of all ongoing gauge
conversion projects in Tamil Nadu, Trichy is set to become one of the busiest railway
junctions. The Electrification between Villupuram and Trichy is expected to be
completed by September 2008. The railway station code for Trichy Junction is TPJ.
Airways
Trichy has an international airport about seven kilometres from the city, which
operates flights to Indian cities, territories, and neighbouring countries including
Malaysia,Sri Lanka, Singapore and the Gulf. Trichy airport is the second airport in South
India next to Chennai to get international connectivity to Colombo (Srilanka) in 1981.
Nowadays, flights are operated to Gulf countries such as the United Arab Emirates and
Kuwait.
Plans are being made to upgrade it to a full fledged international airport in the
next three years. The extended runway (8000ft) was commissioned and further expansion
to 12500 ft has started. Also, the construction of new terminal building is expected to be
completed in 2008.
ADMINISTRATION
The city is a Municipal Corporation. It also serves as the headquarters of the
district with the same name. The city has one Member of Parliament representing the
Trichy constituency, but the Southern part of the district including the Manapparai town
has been merged with Pudukkottai parliamentary constituency for administrative reasons.
The city is headed by a Mayor, under whom are the Deputy Mayor and several
councillors elected by people representing administrative wards; as well as a corporation
Commissioner of the rank of IAS to administer the city. The district is headed by the
District Collector of the rank of IAS. The District court is the highest court of appeal in
Trichy/Tiruchirappalli. The city has seen moderate to high development in spite of funds
constraint.
The city's police force is headed by the City Police Commissioner of the rank of
IPS. One of the five central prisons of the state is located here.
LITERACY/EDUCATION
Tiruchirapalli is an educational city, Tiruchirapalli has schools and colleges that
are hundreds of years old. College Road in Chatram has three colleges and five schools.
Trichy can boast of having schools like Sri Akilandeswari Vidyalaya,R.S.Krishnan
Higher Secondary School, CAMPION Higher Secondary school, St.Johns Vestry
,ST.Josephs;s Anglo Indian, SVS, National College Higher Secondary School, K.A.P.
Vishwanathan Higher Secondary School, Bishop Heber College Higher Secondary
School,E.R. Higher Secondary School etc. Prominent among the educational institutions
in Tiruchirapalli are Bharathidasan University, National Institute of Technology, Trichy,
Anna Technical University, Trichy. NIT is the new name for Regional Engineering
College (REC). The Government Law College, Tiruchirapalli was founded in 1979.
Bharathidasan Institute of Management, a top-20 Indian B-school is also located in
Tiruchirapalli, adjacent to NIT-T. K.A.P.V. Medical College is located close to the
Central Bus Stand. The prominent Arts and Science College include National
College,Urumu Dhanalakshmi College, St. Joseph's College, Jamal Mohamed College,
Bishop Heber College, Periyar EVR Government Arts College have produced eminent
scientists, scholars, teachers, accountants, attorneys and other personalities in other fields.
Former Indian President Dr. A.P.J. Abdul Kalam, writer Sujatha (Rangarajan) studied at
St. Joseph's College in Trichy. R. Venkataraman (former Indian President) studied at
National College in Trichy.
TOURISM
THE SPECTACULAR ROCK FORT TEMPLE, THE LANDMARK OF THE
CITY, IS ON THE SHORES OF THE KAVERI. IT IS PERCHED ON A MASSIVE
ROCKY OUTCROP AT AN ALTITUDE OF 83 M ABOVE SEA LEVEL. THE
THAYUMANASWAMY TEMPLE, DEDICATED TO LORD SHIVA, IS SITUATED
HALFWAY TO THE TOP. IT HAS A 100-PILLAR HALL AND A VIMANA COVERED

WITH GOLD. ON THE SOUTHERN FACE OF THE ROCK ARE SEVERAL
BEAUTIFULLY CARVED ROCK-CUT CAVE TEMPLES OF THE PALLAVA PERIOD.
The Sri Ranganathaswamy Temple at Srirangam, situated six km north of the city,
is among the most revered shrines dedicated to Lord Vishnu in South India, and is the
largest temple complex in the world. Shrouded in a haze of coconut palms away to the
North, the temple is built on an island in the middle of the Kaveri and covers an area of
two point five km. Enclosed by seven rectangular walled courtyards, this temple has 21
gopurams, the largest of which was completed in 1987 and measures 73 m in height.
Srirangam is connected to the mainland by a bridge. The temple is replete with excellent
carvings and numerous shrines dedicated to various gods. It is believed that Sri
Ramanujar the Vaishavite saint and philosopher is embalmed inside the temple premises
in the Sri Ramanujar Sannidhi.
The Jambukeshwara Temple (Thiruvanaikaval), dedicated to Lord Shiva, is
situated just two km east of Srirangam and houses five concentric walls and seven
gopurams. Legend has it that an elephant once worshipped the Lord under the holy
Jambu tree, and hence the name Jambukeshwara. The principal deity is the Shiva lingam,
almost submerged in water, which flows from the subterranean spring in the sanctum
sanctorum.
The Samayapuram Mariamman Temple is located 12 km North of the city
junction on Trichy-Chennai NH 45.The Maariamman Temple is one of the most visited
shrines in Tamilnadu, dedicated to Maariamman, a manifestation of the primeval energy
Shakti as the mother Goddess. The offerings are in various forms. The most common
offering is the Mavilakku Mavu made of jagery, rice-flour, dhal and ghee. Mariamman is
believed to be a form of Shakti associated with prosperity and health. Local beliefs
associate the deity with cures for diseases such as small pox and chicken pox.
Samayapuram was a local capital of the Vijayanagar rulers in the vicinity of
Tiruchirappalli, and was known as Vikramapuram.
Thirunedungalanathar Lord Shiva temple (Thirunedungulam), is located six km
east of BHEL, and four km from NIT Trichy , dedicated to Lord Shiva , bears witness to
the glory of Chola architecture. It has been referred in one of the Alvars-Thirugnana
Sambanthar poetry.
Other temples in and around the city include Vayalur Subramniya Temple, Anbil,
Appakudathan and Thiruvallarai Vishnu Temples, Uraiyur Nachiyaar Temple, Uraiyur
Vekkali Amman Temple, Thiruppaigeeli Siva Temple, Gunaseelam Vishnu Temple,
Cantonment Iyyappan Temple,Kaatazhagiya Singar Perumal Koil at Srirangam, Brahma
temple at Thirupattur and Thirupparaithurai shiva temple.
The Architecture of the St. Joseph's College Church situated within the St. Joseph
College Campus on College road is awe inspiring Kollam pond in Crawford lies along
the Trichy-Madurai Railway line. This pond is home to different types of bird varieties
including ducks and Kingfisher. One could also see few fisherman spreading nets
naviagating with the help of vehicle tyre tubes.
The Anna Science Centre-Planetarium is five km from Trichi Bus Terminal. Anna
Science Centre/Planetarium is located on Pudukkottai road.

MEDIA AND COMMUNICATION
The city has two major English dailies, The Hindu and The New Indian Express.
Tamil language dailies include Dina Malar, Dina Thanthi, Dina Mani and Dinakaran with
two other dailies Tamil Murasu and Malai Malar published in the evening. A short wave
radio station is operated by All India Radio, with most programmes in Tamil, English and
Hindi. A FM station Rainbow FM operated by All India Radio with the programmes in
Tamil, English and Hindi, also a other Private FM Stations Hello FM106.4Mhz (Malar
Publication), Suryan FM 93.5Mhz (SUN Network) and Holly Cross (Educational)
Operated in this City. Television relay started in 1985 from Delhi Doordarshan. In 1986,
after inception of a repeater tower at Kodaikanal, telecast from Madras Doordarshan
commenced. Television reception is through DTH or by Cable, while "Doordarshan"
reception is still available using an external antenna. Trichy has an excellent
communication infrastructure, with the major cellular/broadband service providers
involved in. Telecom services BSNL (Second Largest Electronic Exchange in
Tamilnadu),VSNL (TATA Indicom), Reliance, Vodafone, Airtel, Aircel and BPL
available are by Landline, CDMA and GSM. Fiber optic cables were laid in 2001,
improving internet access.
DAIRYING IN TAMILNADU
Tamilnadu is an agricultural oriented state and majority of the farmers own cattle.
Dairying provides the main source of income next to agriculture. The economic
importance of dairying was felt only after the success of Kaira District Cooperative Milk
Producers Union. The growth of the dairy sector is strengthened, in the state by the
implementation of the Operation Flood Programme, a framework for farmers to reach the
urban market. The responsibility of implementation of the Operation Flood Programme,
is entrusted to National Dairy Development Board.
The Tamilnadu Government had given a high priority for the cooperatives
development. To increase the milk production of the cattle, crossbreeding technology is
introduced. The government is providing this technology at less cost is added advantage
of this breeding system. Milk production in the state has increased from three point two
nine million tonnes in 1986 – 1987 to four point five seven lakh tonnes in 1999-2000.
Out of the total milk production, the cow milk share is 61 per cent and buffalo milk 39
per cent . The growth rate of milk production in the state was two point six one per cent
per annum. The states share in the country‟s milk production is around six per cent[
Ramasamy, 2003].
ORGANISED SECTOR
About fifteen to twenty years ago, milk marketing was confined to physical
distribution owing to scarcity, milk was home delivered by a milkman who sometimes
milked the cow in the consumers presence.
Now, the trend has changed. The existence of the organized sector became
involved in milk distribution activities to maintain quality and hygeine. The organized
sector retails four categories of milk namely tonned milk(three per cent fat and eight
point five per cent solid-not-fat), standardised milk (four point five per cent fat and eight
point five per cent solid-not-fat), double tonned milk (two per cent fat and nine per cent
solid-not-fat) and premium milk (six per cent fat and nine per cent solid-not-fat).
The dairy sector is gradually shifting from unorganized (village level dudhiyas(small
vendors)) to the organized sector that is cooperative, private limited, public limited
companies.
On new product development segment UHT- milk is introduced. The most
common method of extending the shelf life of dairy foods, beyond what can be
obtained by conventional pasteurization, is a commercial sterilization process referred
to as Ultra-High Temperature (UHT) processing. The shelf life is determined by the
filling process and type of packaging. Pasteurised milk available in the market has
refrigerated shelf life of about one to two days under Indian conditions(Anand, 2004)
whereas an aseptically packaged UHT-processed milk can be stored for six or more
months without refrigeration (Pramod Rai, 2006).
Aseptic processing and packaging technology is truly the way of the future. This
chemical free process meets the health conscious consumer‟s demand for natural
foods that are convenient, environmentally friendly, and shelf stable without
refrigeration. Aseptic packaging systems have changed the handling of most
perishable liquid food products. Distribution and storage no longer require
refrigeration and the package can be kept for months without impairing the nutrients
or the flavour of the contents. The high quality of the end product will make this
technology more prevalent in the world market as consumers are becoming more
conscious about the nutritive value of foods and leading a healthy life style ( Ansari,
2004).
DAIRY INDUSTRY IN TIRUCHIRAPPALLI
More than thirty brand of packet milk are marketed in Tiruchirappalli city.
Among them ten well known brand available in the peri-urban area of Tiruchirappalli
are selected for the study. They are Aavin, Achaya, Arokya, Chakra, Komatha,
Sakthi, Tamil, Tasteme, Vijay and V.K.A. milk. Various type of promotional tools
are adopted to increase the market share of the following brand of packet milk. They
include price discount, free gift, exchange offer, advertisement, recommendation of
retailer and so on.
The following are the details about ten brand of packet milk, taken for this study.
1. AAVIN MILK
Tamilnadu Co-operative Milk Producers Federation Limited was constituted on
1st February 1981 with the introduction of Anand pattern in Tamilnadu. At present,
8803 Milk Producers Co-operative Societies at village level and 17 Co-operative
Milk Producers Union at district level are functioning in the state (2002-
2003)(Francis Gnanasekar, 2006). The Federation market milk and milk products in
the brand name “Aavin”, and it is handling the entire commercial activities of
procurement, processing and marketing of milk and milk products. “Aavin” is a
market leader, and it has the highest market share in this region. It retails four
variants- premium milk, toned milk, double toned milk and standardized milk with a
great taste. It also retails UHT-packet milk to meet the growing need of the
consumers. The marketing of this product is based on a close understanding of
consumer preferences. Of emerging trends in food habits. This approach enables them
to deliver good value always to consumers. And expand volumes and create new
markets for the co-operative producers whose interests they represent. There‟s a
stamp of adherence to standards that‟s implied in each product label, which every
symbol, logo and trademark of them stands for. They strive to make them familiar
and reassuring to the most number of people. The real secret is that they cultivate
confidence, to harvest popularity.
2. HATSUN AROKYA MILK
India's largest private dairy is Hatsun world. It now stands majestically as a
hallmark of successful entrepreneurship. Be it in the dedication to quality, in employing
the world's latest technology, innovative marketing strategies, or bringing prosperity to
hundreds of thousands of farmers in the South.
It started as a creamy dream in 1970: Arun Icecreams, the rich, delicious brand
that has captured the hearts of millions of icecream lovers. With over 70 delightful
varieties it is the number one selling icecream in South India.
When the market was ruled by unhygienic milk, Hatsun came up with Arokya -
the standardized, homogenised and bacteria clarified milk. Arokya milk is still
unsurpassed in purity, thickness and quality and has made it one of the most preferred
milk brand consumed by several hundred thousand households every day.
3. HATSUN KOMATHA MILK

This product is Hatsun's proud contribution of a superior quality, lower fat milk
which Hatsun calls 'Cow's milk'. Komatha is the perfect symbolization of the values and
attributes of the provider of fresh milk - the cow. Hatsun handles a total one point eight
million litre a day. Hatsun's quest for quality starts at procurement, two times a day, 365
days of the year at over a thousand collection centers, from more than a hundred thousand
farmers. Hatsun sources its milk with an ever watchful eye, always keen on
quality(www.hatsun.com).
4. ACHAYA MILK
Achaya Dairy and Farm Products Private Limited is located at Kollampallayam,
Erode District. Their product is Achaya milk. Achaya dairy is one of the major private
sector dairies in South India. It sells lakhs of litres of milk everyday throughout
Tamilnadu with presence in Kerala and Hill station. Achaya dairy is encouraging ten
thousands of people to breed cattle.
5. CHAKRA MILK
Tulya Food Products Private Limited is located at Naranamangalam village, Trichy-
Perambalur NH road, Perambalur District. Their product is Chakra milk. Chakra
brand of milk is name that spells purity, thickness and quality. It is one of the most
preferred milk brand consumed by several hundred thousand households every day.
6. SAKTHI MILK
ABT Industries Limited, dairy farm is located at Ambarampalayam post, Pollachi.
Their product is Sakthi milk. Its register office is at Coimbatore. The assurance of
quality at all levels facilitated production of high grade milk and milk products.
7. TAMIL MILK
G.K.Dairy plant is located at Kurichi, Thanjavur District. Their product is Tamil
milk. It provides wholesome and safe food of excellent quality through deployment of
quality management systems and state-of-art technology.
8. TASTE ME MILK
Taste me Dairy and Farm Products Private Limited is located at Anthiyur, Bavani,
Erode District. Their product is Taste me milk. Taste me dairy and farm products
have put light on the major concerns that hamper the quality of milk and milk
products. It has taken revolutionary steps to justify its stature by propagating hygienic
practice right from the breeding stage to the stages of storage, transport and
distribution.
9. VIJAY MILK
Vijay Dairy and Farm Products Private Limited is located at Peramangalam,
Tiruchirappalli. Their product is Vijay milk. Other Products of them are butter, ghee
and curd. Vijay Dairy and Farm Products has aggressively branded milk to exploit the
market shift from commodity – based to branded sales. It is continuously expanding
its presence and it is one of the largest private sector player in Tamilnadu.
10. V.K.A. MILK

V.K.A. Dairy Plant is located at Veerarakkiam, Karur District. Their product is
V.K.A. milk. Other products of them are cream, butter, ghee. The V.K.A. dairy
continuously focuses its efforts to better understand the changing lifestyles of
consumer and provide them nutrition and wellness through its product offerings. It
helps them to create value that can be sustained over the long term by offering
consumers a wide variety of high quality, safe food products at affordable prices.
ENDNOTES
191. www.trichy.com assessed on 5 October 2008
192. Ramasamy, C. and Selvaraj, K.N. (2003). Globalisation of trade and its
implication on livestock sector in India and Tamilnadu. Veterinary education
and services in India-global challenges, paper presented at Madras veterinary
college. Chennai. 7th and 8th July.208.
193. Anand, S.K. and Maheshkumar, V.(2004). Managing microbial quality of milk
under tropical conditions. Indian Dairy man. 56(12), 61-64.
194. Pramod Rai., Chhaya Rai., Pardeshi, I.L. (2006). Extending of shelf life in dairy
foods. Indian Dairyman, 58(2), 31-37.
195. Ansari, I.A., Datta, A.K. and Rai, P. (2004). Aseptic processing and packaging:
a technology for future generation. Indian Dairyman, 56(7), 56-36.
196. Francis Gnanasekar, I. and Revathi, T. (2006). Status and prospectus for dairy
Co-operative in Tamilnadu. Journal of the Association of Economists of
Tamilnadu. XVIII(1), 33-34.
197. www.aavinmilk.com assessed on 16 May 2009.

198. www.hatsun.com assessed on 16 May 2009.
CHAPTER IV
ANALYSIS AND INTERPRETATION
This chapter gives an idea about the profile of the respondents and level of
satisfaction of consumers on the marketing mix for packet milk. The various features
constituting product, price, promotion and distribution are given in detail. A cross
tabulation of four Ps are also given. Finally, to draw the scientific inference from the
collected data, the following statistical techniques such as Box-plot analysis, Factor
analysis, Mann-Whitney test (or U test), Kruskal-Wallis test (or H test), Chi-square test,
Kendall‟s co-efficient of concordance and Perceptual map have been used.
SOCIO – DEMOGRAPHIC FACTORS OF THE RESPONDENTS

TABLE – 1
CLASSIFICATION OF THE RESPONDENTS OF TIRUCHIRAPALLI
CORPORATION ACCORDING TO THEIR ZONE LOCATION
No. of respondents
Zone Percentage
n:450
K. Abishekapuram 147 32.7
Srirangam 87 19.3
Ponmalai 164 36.4
Ariyamangalam 52 11.6
Source: Primary Data
Among the 450 respondents, 32.7 per cent of them are from K. Abishekapuram
Zone, 19.3 per cent of the respondents are from Srirangam Zone, 36.4 per cent of the
respondents hails from Ponmalai Zone and 11.6 per cent of the respondents are from
Ariyamangalam Zone.
TABLE –2
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR AGE
No. of respondents
AGE Percentage
n:450
21 – 30 164 36.4
31- 40 138 30.7
41 – 50 104 23.1
51 – 60 37 8.2
Above 60 7 1.6
Out of the 450 respondents, 36.4 per cent of them are coming under 21-30
age group, which represent the majority of the sample, 30.7 per cent of the respondents
are coming under 31-40 age group, 23.1 per cent of the respondents are coming under
41 – 50 age group, eight point two per cent of the respondents are coming under 51 – 60
age group and remaining one point six per cent are coming under above 60 age group.
TABLE – 3
LEVEL OF EDUCATION OF THE RESPONDENTS
No. of respondents
Education Percentage
n:450
Illiterate 65 14.5
Elementary
96 21.3
Education
6th to 10th Standard 56 12.4
Higher Secondary
65 14.5
Education
Graduate/Post
168 37.3
Graduate /Diploma
Among the 450 respondents, 37.3 per cent of them are qualified with graduate
/post graduate/ diploma, 21.3 per cent of them have studied elementary education, 14.5
per cent of them have studied higher secondary, 14.5 per cent of them are illiterate and
remaining 12.4 per cent of them have studied upto 6th to 10th standard.
TABLE – 4
CLASSIFICATION OF THE RESPONDENTS ACCORDING TO THE
MONTHLY INCOME OF THE HOUSEHOLD
No. of respondents
Monthly Income Percentage
n:450
Less than 5,000 rupees 241 53.6
5,001 to 10,000 rupees 124 27.6
10,001 to 15,000 rupees 49 10.8
15,001 to 20,000 rupees 24 5.3
Above 20,000 rupees 12 2.7
Among the 450 samples, 53.6 per cent of them are having less than 5,000
rupees as their monthly income of the household, 27.6 per cent of them are having
5,001 to 10,000 rupees, 10.8 per cent of them are having 10,001 to 15,000 rupees, five
point three per cent of them are having 15,001 to 20,000 rupees and two point seven per
cent of them are having above 20,000 rupees as their monthly income of the
household.
TABLE – 5
OCCUPATION OF THE RESPONDENTS
No. of respondents
Occupation Percentage
n:450
House wife 373 82.9
Employed 77 17.1
Out of the 450 sample, 82.9 per cent of the respondents are housewife and only
few (17.1%) of the respondents are employed.
Thus, majority of the respondents are housewives.

TABLE – 6
TYPE OF EMPLOYMENT OF THE RESPONDENTS
Nature of No. of respondents

Percentage
Employment n:77
Government 28 36.3
Private 30 39.0
Business 19 24.7
Out of the 77 employed respondents, 36.3 per cent of them are government
employees, 39 per cent of them are private employees and 24.7 per cent of them are in
business.
Majority of the respondents are private employees.

TABLE –7
TYPE OF FAMILY OF THE RESPONDENTS
No. of Respondents
Type of family Percentage
n : 450
Nuclear 370 82.2
Joint 80 17.8
Among the 450 respondents, 82.2 per cent of them belong to nuclear family and
only 17.8 per cent of them belong to joint family type.
The nuclear family comprises of husband, wife and children and joint family
consists of husband, wife, children, grand parents and in – laws. Nuclear family is
found to be more common.

TABLE – 8
FOOD HABIT OF THE RESPONDENTS
No. of respondents
Food Habits Percentage
n:450
Vegetarian 127 28.2
Non-Vegetarian 323 71.8
Among the 450 respondents, 71.8 per cent of the respondents are
non-vegetarian and namely 28.2 per cent of them are vegetarian.
Thus, majority of the respondents food habit are non-vegetarian.

TABLE – 9
EXPENDITURE ON MILK PER MONTH
Monthly Milk No. of Respondents

Percentage
Expenditure n:450
Below Rs. 300 215 47.8
Rs. 300 to 450 49 10.9
Rs. 450 to 600 131 29
Rs. 600 to 750 7 1.6
Above Rs. 750 48 10.7
Out of 450 respondents, 47.8 per cent of the households are spending less
than Rs.300/- on milk per month, 29 per cent of the respondents are spending between
Rs. 450 and 600 per month, 10.9 per cent of them are spending between Rs. 300 and
450 per month, 10.7 per cent of them are spending more than Rs. 750 on milk per month
and remaining one point six per cent of them are spending between Rs. 600 and 750 on
milk per month.

PRODUCT
TABLE –10
QUANTITY OF PACKET MILK USED IN THEIR HOUSEHOLD
Daily Consumption No. of Respondents

Percentage
of of Milk n:450
Below 500 ml 215 47.8
500 – 750 ml 49 10.9
750 – 1000 ml 131 29
1000 – 1250 ml 7 1.6
Above 1250 ml 48 10.7
Out of the sample taken, 47.8 per cent of the households are utilizing less than
500 ml of milk per day, 10.9 per cent of them are utilizing milk between 500 ml and 750
ml of milk per day, 10.7 per cent of them are utilizing more than 1250 ml of milk per
day, 29 per cent of them are utilizing milk between 750 ml and 1000ml of milk per day
and one point six per cent of them are utilizing between 1000ml and 1250 ml of milk per
day. Majority of them are utilizing less than 500 ml of milk per day.
TABLE – 11
CLASSIFICATION OF THE RESPONDENTS ACCORDING TO TYPE OF
PACKET MILK PURCHASED
No. of Respondents
Type of Packet Milk Percentage
n:450
Toned packet milk 31 6.8
Standardized packet milk 62 13.8
Premium packet milk 143 31.8
Do not know the type of

214 47.6
packet milk
Out of the sample taken for research, six point eight per cent of them conveyed
that they are using toned packet milk, 13.8 per cent of them conveyed that they are
using standardized packet milk, 31.8 per cent of them replied that they are using
premium packet milk and 47.6 per cent of them are using packet milk without knowing
their type.
TABLE – 12
CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF OPINION ON
VARIOUS FEATURES OF PACKET MILK
No. of Respondents in Percentage

Sl.
Variables
No. Very Very
Excellent Good Poor
Good Poor
Taste of Packet
1. 24.9 27.6 45.3 2.2 -
Milk
Freshness of Packet
2. 19.1 35.3 42.3 3.3 -
Milk
Thickness of
3. 16.4 26.9 43.1 13.6 -
Packet Milk
4. Hygienic quality 14.7 28.9 49.1 7.3 -
Fitness for infant

5. 19.6 27.8 43.6 7 2
consumption
6. For Digestion 18.7 21.3 51.8 8.2 -
For Making coffee

7. 19.1 29.8 47.6 3.5 -
(or) Tea
8. For Curd Making 14.7 28.0 46.9 8.2 2.2
For Making milk

9. 11.3 20.2 46.7 19.6 2.2
Sweets
For Making Milk
10 12.4 23.1 58.4 2.5 3.6
Drinks
Quality rating on the performance of various features of the packet milk is
measured by a five point scale.
Out of 450 respondents, 45.3 per cent feel that the taste of packet milk used by
them is good, 27.6 per cent conveyed that the product used by them is very good, 24.9
per cent conveyed that the product used is excellent and remaining two point two per
cent are of the opinion that the product they use is poor.
Out of the sample taken for research, 42.3 per cent feel that the freshness quality
of packet milk used by them is good, 35.3 per cent are of the opinion that the product
they use is very good, 19.1 per cent are of the opinion that the product they use is
excellent and only three point three per cent conveyed that the product used by them is
poor.
Out of the sample taken, 43.1 per cent replied that the thickness feature of packet
milk used by them is good, 26.9 per cent are of the opinion that the product they use is
very good, 16.4 per cent are of the opinion that the product they use is excellent and
13.6 per cent conveyed that the product used by them is poor.
Out of the sample taken for research, 49.1 per cent replied that the hygienic
quality of packet milk used by them is good, 28.9 per cent conveyed that the product
they use is very good, 14.7 per cent are of the opinion that the product they use is
excellent and remaining seven point three per cent conveyed that the product they use is
poor.
Out of 450 respondents, with regard to the aspect of fitness for infant
consumption, 43.6 per cent conveyed that packet milk used by them is good for infant
consumption, 27.8 per cent conveyed that the product they use is very good, 19.6 per
cent are of the opinion that the product they use is excellent, seven per cent conveyed
that the product they use is poor and remaining two per cent conveyed that the product
they use is very poor.
Out of the sample taken, 51.8 per cent of them replied that the packet milk used
them is good for digestion, 21.3 per cent replied that the product they use is very good,
18.7 per cent are of the opinion that the product they use is excellent and eight point
two per cent conveyed that the product they use is poor.
Out of the sample taken for research, 47.6 per cent conveyed that for making
coffee or tea the quality of packet milk used by them is good, 29.8 per cent conveyed
that the product they use is very good, 19.1 per cent are of the opinion that the product
they use is excellent and only three point five per cent conveyed that the product they use
is poor.
Out of the sample taken for research, 46.9 per cent conveyed that for curd
making the quality of packet milk used by them is good, 28 per cent conveyed that the
product they use is very good, 14.7 per cent are of the opinion that the product they use
is excellent, eight point two per cent conveyed that the product they use is poor and
remaining two point two per cent conveyed that the product they use is very poor.
Out of 450 respondents, 46.7 per cent replied that for making milk sweets the
quality of packet milk used by them is good, 20.2 per cent replied that the product they
use is very good, 19.6 per cent replied that the product they use is poor, 11.3 per cent
are of the opinion that the product they use is excellent, and two point two per cent
replied that the product they use is very poor.

Out of the sample taken, 58.4 per cent replied that for making milk drinks the
quality of packet milk used by them is good, 23.1 per cent are of the opinion that the
product they use is very good, 12.4 per cent conveyed that the product they use is
excellent, three point six per cent conveyed that the product they use is very poor and two
point five per cent conveyed that the product they use is poor.
TABLE – 13
CLASSIFICATION OF THE RESPONDENTS ACCORDING TO THE CHOICE
OF BRANDED PACKET MILK

No. of respondents
Brand Preference Percentage
n:450
Aavin 133 29.6
Arokya 69 15.3
Taste me 47 10.4
Komatha 47 10.4
Chakra 44 9.8
Sakthi 34 7.6
Vijay 34 7.6
V.K.A. 17 3.8
Achaya 15 3.3
Tamil 10 2.2
Out of the sample taken, 29.6 per cent replied that they use Aavin brand, 15.3
per cent conveyed that they use Arokya brand, 10.4 per cent conveyed that they use
Taste me brand and 10.4 per cent conveyed that they use Komatha brand, nine point
eight per cent conveyed that they use Chakra brand, seven point six per cent conveyed
that they use Sakthi brand, seven point six per cent conveyed that they use Vijay
brand, three point eight per cent conveyed that they use V.K.A. brand, three point three
per cent conveyed that they use Achaya brand and two point two per cent conveyed that
they use Tamil brand.
Majority of the respondents choice is Aavin brand. The reason indicated for their
preference are wide availability, taste, thickness, freshness, hygienic, brand reputation
and retailer recommendation.
TABLE – 14
DISTRIBUTION OF THE RESPONDENTS ACCORDING TO THE BRAND
SATISFACTION OF PACKET MILK

No. of Respondents
Brand Satisfaction Percentage
n:450
Yes 333 74
No 117 26
Among the packet milk users of the sample 450, 74 per cent replied that they are
satisfied with their brand of packet milk and only 26 per cent replied that they are not
satisfied with their brand of packet milk. About three – fourth (74%) of the users of
packet milk conveyed that they are satisfied with their brand of packet milk.
TABLE – 15
ALTERNATE CHOICE OF BRANDED PACKET MILK

No. of
Preferred
respondents Percentage
Alternate brand
n=117
Arokya 35 29.9
Aavin 17 14.5
Vijay 14 12
Taste me 12 10.2
Chakra 11 9.4
Tamil 10 8.6
Sakthi 10 8.6
Komatha 8 6.8
Out of 450 respondents, 117 of them had conveyed that they are not satisfied with
the presently using brand of packet milk. In that case they also replied their alternate
brand choice. It is inferred that, 29.9 per cent replied that their alternative brand choice
is Arokya brand, 14.5 per cent replied that they prefer to buy Aavin brand, 12 per cent
replied that they prefer to buy Vijay brand, 10.2 per cent replied that they prefer to
buy Taste me brand, nine point four per cent replied that they prefer to buy the Chakra
brand, eight point six per cent replied that they prefer to buy the Tamil brand, eight
point six per cent replied that they prefer to buy the Sakthi brand and six point eight
per cent replied that they prefer to buy the Komatha brand. Majority of the respondents
alternative choice is Arokya brand.
TABLE – 16
RESPONDENTS CHOICE OF PACKET MILK WITH RESPECT TO
MARKETING MIX PRACTICES

Brand name Rank
Aavin 1
Arokya 2
Chakra 3
Sakthi 4
Vijay 5
V.K.A. 6
Komatha 7
Taste me 8
Achaya 9
Tamil 10
Respondents expressed their brand preference, on the basis of marketing mix
practices adopted for marketing packet milk in the peri-urban area of Tiruchirappalli.
As expressed by respondents, Aavin has been preferred as a first product of
choice, Arokya has been preferred as a second product of choice, Chakra has been
preferred as a third product of choice, Sakthi has been preferred as a fourth product of
choice, Vijay has been preferred as a fifth product of choice, V.K.A. has been preferred
as a sixth product of choice, Komatha has been preferred as a seventh product of choice,
Taste me has been preferred as a eighth product of choice, Achaya has been preferred as
a ninth product of choice and Tamil has been preferred as a tenth product of choice.
More than thirty packet milk companies operate in the Tiruchirappalli region.
Despite the hectic competition, these selected companies score over others with their
appropriate marketing mix practices and win over considerable market share.
All ten well-known packet milk companies in this region retain their positions,
with their appropriate marketing mix policies. All dairy companies win over packet milk
market with their four Ps such as customer knowledge, product innovation, product
quality, line-extension, premium preference, extensive and efficient dealership system,
superior service, aggressive sales force, effective sales promotion, manufacturing
efficiency and cost cutting practices in Tiruchirappalli.
TABLE – 17
CLASSIFICATION OF THE RESPONDENTS ACCORDING TO THE NUMBER
OF PACKET MILK BRAND USED
No. of
Number of Packet Milk Brand
Respondents Percentage
used
(N:450)
More than four brand 23 5.1

Four brand 23 5.1
Three brand 76 16.9
Two brand 212 47.1
One brand 116 25.8
Out of the sample taken with regard to the number of packet milk brand used,
47.1 per cent of them replied that they have used two brand, 25.8 per cent of them
replied that they have used one brand ,16.9 per cent replied that they have used three
brand, five point one per cent replied that they have used four brand and five point one
per cent of them replied that they have used more than four brand.
Thus majority of the respondents replied that they have used two brand of packet
milk.
TABLE – 18
CLASSIFICATION OF THE RESPONDENTS, ACCORDING TO THE
SATISFACTION ON SACHET PACKING
Sachet packing No. of Respondents

Percentage
satisfaction N=450
Extremely
52 11.6
satisfied
Very much
111 24.6
satisfied
Moderately
189 42
satisfied
poorly
61 13.6
satisfied
Not satisfied 37 8.2
Out of the sample taken for research, 42 per cent conveyed that they are
moderately satisfied with the sachet packing, 24.6 per cent conveyed that they are very
much satisfied, 13.6 per cent conveyed that they are poorly satisfied, 11.6 per cent
conveyed that they are extremely satisfied with the sachet packing and eight point two
per cent conveyed that they are not satisfied with the sachet packing.
Hence, 42 per cent of the respondents conveyed that they are moderately satisfied
with the sachet packing.
TABLE –19
CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF LOOKING
THE DATE OF MILK PACKING
No. of
Looking the date of
Milk Packing
(n:450)
Yes 391 86.9
No 59 13.1
Among the 450 respondents, 391 respondents (i.e., 86.9 per cent) are having the
habit of looking the date of milk packing whereas 59 respondents (i.e., 13.1 per cent) are
not having the habit of looking the date of the milk packing.
TABLE – 20
CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF FREQUENCY
OF LOOKING THE DATE OF MILK PACKING
Frequency of Seeing the No. of Respondents

Percentage
date of Milk Packing (n:391)
Rarely 77 19.7
Occasionally 125 32.0
Frequently 57 14.5
Always 132 33.8
Out of 450 sample taken for research, 391 of the respondents are having the habit
of looking the date of milk packing. Among the 391 respondents, 33.8 per cent are
always looking the date of milk packing, 32 per cent are occasionally looking the date of
milk packing, 19.7 per cent are rarely looking the date of milk packing and 14.5 per cent
are frequently looking the date of milk packing.
TABLE – 21
CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF PROBLEM
OF PACKET MILK
No. of
Problem of Packet
Milk
(n:450)
No inconvenience 224 49.8
Problem of
48 10.7
adulteration
Need of refrigerator
89 19.8
facility
Only three days shelf –
22 4.9
life
Packing is not good 29 6.4
Plastic Smell in Milk 38 8.4

Out of the sample taken for research, 49.8 per cent of the respondents replied
that they have no inconvenience with sachet type of milk packing, 19.8 per cent replied
that sachet type of milk packing has the need of refrigerator facility, 10.7 per cent
replied that they have the problem of adulteration, eight point four per cent replied that
they have the problem of plastic smell in milk, six point four per cent replied that milk
packing is not good and four point nine per cent replied about the problem of three days
shelf – life of packet milk.
TABLE –22
CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF
PREFERENCE OF PACKET MILK IN LESS THAN 250 ml SACHET
Preference of packet No. of

milk in less than 250 Respondents Percentage
ml Sachet (n:450)
Yes 331 73.6

No 119 26.4
Out of the sample taken, 73.6 per cent of the respondents are preferring to have a
packet milk in less than 250 ml sachet. On the other hand, 119 respondents (i.e., 26.4 per
cent) are not having the preference.
TABLE – 23
FREQUENCY OF PURCHASE OF PACKET MILK
Frequency of No. of
preference of packet Respondents Percentage
milk (n:331)
Rarely 111 33.5
Occasionally 113 34.2
Frequently 59 17.8
Always 48 14.5
Out of the 450 sample taken for research, only 331 of the respondents are
preferring to have a packet milk in less than 250 ml sachet. Among 331 of the
respondents, 34.2 per cent of the respondents are occasionally preferring a packet milk
in less than 250 ml sachet, 33.5 per cent of the respondents are rarely preferring a
packet milk in less than 250 ml sachet, 17.8 per cent of the respondents are frequently
preferring a packet milk in less than 250 ml sachet and 14.5 per cent of the respondents
are always preferring a packet milk in less than 250 ml sachet.
TABLE –24
QUANTITY OF PREFERENCE OF PACKET MILK
Quantity of No. of
preference of packet Respondents Percentage
milk (n:331)
100 ml 124 37.5
150 ml 111 33.5
200 ml 96 29.0
Out of 331 sample taken for research, with regard to the quantity of preference of
packet milk in less than 250 ml sachet, 37.5 per cent of the respondents conveyed that
they prefer 100 ml sachet, 33.5 per cent of them conveyed that they prefer 150 ml
sachet and 29 per cent of them conveyed that they prefer 200 ml sachet.
TABLE – 25
EXPECTATION ON IDEAL PACKING METHOD
No. of
Reason for package Respondents Percentage
(n:450)
Protection 148 32.9

Convenience 92 20.4
Attractiveness 66 14.7
Bio – degradability 63 14.0
Promotion 81 18.0
Out of the sample taken, 32.9 per cent of the respondents opinion to the expected
aspect of ideal packing is protection, 20.4 per cent of the respondents opinion to the
expected aspect of ideal packing is convenience, 18 per cent of the respondents opinion
to the expected aspect of ideal packing is promotion, 14.7 per cent of the respondents
opinion to the expected aspect of ideal packing is attractiveness and 14 per cent of the
respondents opinion to the expected aspect of ideal packing is bio-degradability.
TABLE – 26
CLASSIFICATION OF THE RESPONDENTS, ACCORDING TO THE
AWARENESS OF NON – DEGRADABLE NATURE OF PLASTIC
Awareness of non- No. of

degradable nature of Respondents Percentage
Plastic (n:450)
Yes 74 16.4
No 376 83.6
Out of the sample taken, 83.6 per cent of the respondents conveyed that they
have no awareness of the non – degradable nature of plastic and only 16.4 per cent of
them conveyed that they are aware of the non-degradable nature of plastic.
Almost all the respondents (83.6 per cent) conveyed that they have no awareness
of the non-degradable nature of plastic.
TABLE – 27
TO THE SOURCE OF AWARENESS OF NON – DEGRADABLE NATURE OF
PLASTIC
No. of
Source of Awareness Respondents Percentage
(n:74)
Television 44 59.5
Radio 16 21.6
Newspaper and magazine 14 18.9
Out of the sample taken for research, with regard to the source created the
awareness of non – degradable nature of plastic, 59.5 per cent of the respondents replied
that television has created the awareness, 21.6 per cent of the respondents replied that
radio has created the awareness and 18.9 per cent of the respondents replied that
newspaper and magazine has created the awareness of non – degradable nature of plastic.
TABLE – 28
TO THE METHOD OF DISPOSAL OF SACHET BAGS
No. of
Disposal of plastic bags Respondents Percentage
(n:450)
Sewage disposal 13 2.9
Dustbin 137 30.4
Throwing in open place 29 6.4
Land - in – fill 30 6.7
Selling the bags 241 53.6
Out of 450 samples, 53.6 per cent of the respondents conveyed that they dispose
sachet bags by selling, 30.4 per cent of them conveyed that they dispose the sachet bags
through dustbin, six point seven per cent of them conveyed that they dispose it through
land-in-fill, six point four per cent of them conveyed that they dispose it by throwing in
open place and two point nine per cent of them conveyed that they dispose it through
sewage.
TABLE - 29
FACTOR ANALYSIS – OPINION ON THE BASIS OF PRODUCT FEATURE
RELATED COMPONENT MATRIX AS TWO COMPONENTS EXTRACTED
Variables Variable label Matrix 1 Matrix 2
X1 Taste .742 .191
X2 Freshness .788 .065
X3 Thickness .603 .218
X4 Hygienic .590 .248
X5 Fit For Infant-Consumption .564 .502
X6 Digestion .399 .642
X7 Making Tea/Coffee .503 .301
X8 Making Curd .179 .693
X9 Making Milk Sweets .203 .743
X10 Making Milk Drinks .153 .779
Extraction Method: Principal Component Analysis. Rotation Method. Varimax with
Kaiser Normalization a Rotation converged in three iterations.

Out put of factor analysis
Group-1 Factor Group-2 Factor
*Freshness (X2) * Making Milk Drinks (X10)
*Taste (X1) * Making Milk Sweets(X9)
*Thickness (X3) * Making Curd (X8)

Important properties of Important purpose of packet milk
packet milk
Inference
Factor analysis method has been advocated to simplify large number of product
features, for a set of respondents to a smaller number of variables. Product features are
simplified and segmented into two groups of factors, with respect to opinion of the
respondents. Freshness (X2), taste (X1) and thickness (X3) are segmented as the important
properties of packet milk, under Group-1 factor. Making milk drinks(X10), making milk
sweets (X9) and making curd(X8) are segmented as the important purpose of packet milk,
under Group-2 factor.
All leading companies implement the recommendation of research organisations, in
designing the features of the product; as part of packet milk marketing mix- product policy.
TABLE - 30
CHI-SQUARE TEST – CROSS TABULATION – EDUCATIONAL
QUALIFICATION OF THE RESPONDENTS AND THEIR OPINION ON TYPE
OF PACKET MILK
Null Hypothesis H0
The educational qualification of the respondents have no influence on their opinion
on type of packet milk purchased.
Level of Significance (α) = 0.05

N
(oi  Ei ) 2
Chi-square test statistic: x 2

i 1 Ei
Type
Education Toned Not Total
Milk Standardized Premium Known
Illiterate 8 8 24 26 66
Elementary 6 13 32 44 95
Education
3 8 20 25 56
6th -10th Standard
2 13 25 25 65
Higher Secondary
Graduate/Post 12 20 42 94 168
Graduate/Diploma
Total 31 62 143 214 450
Calculated P value = 0.216
Inference
Calculated P value (0.216) > 0.05 (level significance). Hence Ho is accepted .The
educational qualification of the respondents have no influence on their opinion on type of
packet milk purchased.
TABLE - 31
CHI-SQUARE TEST – CROSS TABULATION- OCCUPATION OF THE
RESPONDENTS AND THEIR OPINION ON HYGIENIC QUALITY OF PACKET
MILK
Null Hypothesis H0
The occupations of the respondents have no influence on their opinion on hygienic
quality of packet milk.
N
(oi  Ei ) 2
Chi-square test statistic: x 2

i 1 Ei
Occupation Hygienic Total

Poor Good Very Good Excellent
Housewife 26 180 111 57 374
Employed 7 41 19 9 76
Total 33 221 130 66 450
Calculated P value = 0.604
Inference
Calculated P value (0.604) > 0.05 (level significance). Hence Ho is accepted. The
occupations of the respondents have no influence on their opinion on hygienic quality of
packet milk.
TABLE - 32
PERCEPTUAL MAP FOR WELL-KNOWN DAIRY PRODUCT
Preferential choice scores awarded by the respondents, on the basis of marketing
mix practices of dairy companies, were positioned in this perceptual map. This perceptual
map highlights about respondents selection of packet milk with respect to different pricing
range.
Sl. Product Customers Price per

preferential litre
No. Name
score (Rupees)
1. Aavin 4271 22
2. Arokya 3676 22
3. Sakthi 2948 21
4. Vijay 2564 22
5. V. K.A. 2158 20
6. Chakra 3300 22
7. Tamil 1097 20
8. Taste me 1820 21
9. Achaya 1181 22
10 Komatha 2039 22
Perceptual map scale in X-axis Perceptual map scale in Y-axis

Pricing range Pricing segment Preferential Preferential segment
score range
22 Higher price 0 – 1000 Other marketers
1000 – 2000 Low price-active marketing
21 Medium price
mix practices.
20 Lesser price
2000 – 3000 Medium price-active marketing
mix practices
3000 & above Higher price-active marketing
mix practices
Figure 6
Perceptual Map
Preferential choice scores awarded by the respondents, on the basis of marketing
mix practices of dairy companies
Inference
Preference data were collected from each respondent, to simply rank order the tenth
product-owned packet milk companies; from the most preferred to the least preferred, on
the basis of marketing mix practices. These space positions represent the respondent‟s
“ideal points”. That is, the hypothetical packet milk model possessing the right
combination of effective marketing mix practices and ideal price for that respondent. The
price ranges were categorized as lesser price, medium price and higher (premium) price. A
further investigation of the multidimensional map suggests that, certain packet milk
products are considered quite similar to one another in higher price region.
In this region, products were costing twenty two rupees per litre. Aavin, Arokya,
Chakra, Vijay, Komatha and Achaya implements innovative marketing mix practices and
consistently maintains its market share. The products seem to be classified as products of
the same “higher price” group and competitive with higher price-active marketing mix
practices.
In the “medium price” region, products were costing twenty one rupees per litre.
In this region of “medium price” segment, Sakthi and Taste me occupies a position, and
seem to be classified as products of “medium price” group and competitive with medium
price-active marketing mix practices.
In the “lower price” region, products were costing twenty rupees per litre. V.K.A.
and Tamil seem to be classified as products of “lesser price” group and competitive with
lesser price-active marketing mix practices.
“Aavin” ranked as the number one product by the women respondents, with their
preferential score; based on marketing mix practices, “Aavin” has the largest market share
in this region and the respondents preferred the packet milk for its product and distribution
mix. “Arokya” is rated as second product. Promotional and product mix have high
influence on the respondents preference. “Chakra” is rated as third product. Distribution
factors have high influence on the respondents preference. “Sakthi” is rated as fourth
product. Price and product mix have high influence on the respondents preference. “Vijay”
is rated as fifth product. Distribution factors have high influence on the respondents
preference. “V.K.A.” is rated as sixth product. Price and distribution mix have high
influence on the respondents preference. “Komatha” is rated as seventh product.
Promotional and product mix have high influence on the respondents preference. “Taste
me” is rated as eighth product. Distribution factors have high influence on the respondents
preference. “Achaya” is rated as ninth product. Distribution factors have high influence on
the respondents preference. “Tamil” is rated as tenth product. Price and distribution mix
have high influence on the respondents preference. All these products were evaluated by
respondents, on the basis of marketing mix practices adopted for marketing packet milk in
the peri-urban area of Tiruchirappalli.
PRICE
TABLE - 33
CLASSIFICATION OF THE RESPONDENTS, ACCORDING TO THE PRICE
INFLUENCE OF PAKCET MILK

No. of
Price Influence Respondents Percentage
N=450
Very High
- -
Influence
High Influence 21 4.7
A Little Influence 20 4.4
Very Little
59 13.1
Influence
No Influence 350 77.8
Out of 450 respondents, 77.8 per cent of the respondents conveyed that price have
no influence in their purchase decision of packet milk, 13.1 per cent of them conveyed
that price have a very little influence, four point seven per cent of them conveyed that
price have a high influence and four point four per cent of them conveyed that price have
a little influence in their purchase decision of packet milk.
TABLE – 34
OPINION OF THE RESPONDENTS ON PRICE OF PACKET MILK
No. of
opinion Respondents Percentage
N=450
Extremely
307 68.2
satisfied
Very much
106 23.6
satisfied
Moderately
37 8.2
satisfied
Poorly
- -
satisfied
Not satisfied - -
Out of 450 respondents, 68.2 per cent of the respondents conveyed that they are
extremely satisfied with the price of packet milk, 23.6 per cent of the respondents
conveyed that they are very much satisfied with the price of packet milk and remaining
eight point two per cent of the respondents conveyed that they are moderately satisfied
with the price of packet milk.
TABLE - 35
MANN-WHITNEY U TEST- OPINION OF NUCLEAR AND JOINT
FAMILY TYPE OF RESPONDENTS ON PRICE OF PACKET MILK

Null Hypothesis H0: There is no significant difference in the opinion of nuclear and joint
family type of respondents towards price satisfaction of packet milk

n1 (n1  1)
Test Statistic and Calculation U1  n1 . n2   R1 (Nuclear Family)
2
n (n  1) (Joint Family)
U 2  n1 . n2  2 2  R2
2
Opinion Type of Number of Mean Sum of Value

Family Rank Ranks (P)
Respondents (R)
(n)
Nuclear 370 225.52 83441.50 0.994

Price
Joint 80 225.42 18033.50
n1= Number of Nuclear Family type of respondents = 370

n2= Number of Joint Family of respondents= 80
R1= Sum of ranks assigned to Nuclear Family group = 83441.50
R2= Sum of ranks assigned to Joint Family group = 18033.50
P= Calculated value=0.994
Inference
Calculated P value (0.994) > 0.05 (level of significance). Hence Ho is accepted.
There is no significant difference in the opinion of nuclear and joint family type of
respondents towards price satisfaction of packet milk.
PROMOTION
TABLE – 36
INFLUENCE OF PROMOTIONAL FACTORS IN THEIR DECISION MAKING
OF PACKET MILK
No. of respondents in percentage

Sl.
Variables
No. Very A very
High A Little No
high little
Influence Influence influence
influence Influence
1. Advertisement 14.9 43.8 22.9 14.9 3.5
Brand
2. 28.7 45.0 17.6 5.8 2.9
Reputation
3. Free gift 10.4 25.8 19.3 19.8 24.7
4. Price Discount 13.8 18.9 32.4 17.3 17.6
5. Exchange offer 8.2 16.0 26.3 23.1 26.4
Recommendation
6. 28.7 45 17.6 5.8 2.9
of retailer
Table – illustrates the influence of various promotional factors in their decision
making of packet milk.
Out of the sample taken, 43.8 per cent of the respondents conveyed that the
influence of advertisement in their decision making is high, 22.9 per cent of the
respondents conveyed that the factor have a little influence, 14.9 per cent of the
respondents conveyed that the factor have a very high influence and 14.9 per cent of the
respondents conveyed that the factor have a very little influence and remaining three
point five per cent of the respondents conveyed that the factor have no influence in their
decision making.
Out of 450 respondents, 45 per cent of the respondents replied that the influence
of brand reputation in their decision making is high, 28.7 per cent of the respondents
replied that the factor have a very high influence, 17.6 per cent of the respondents
replied that the factor have a little influence, five point eight per cent of the respondents
replied that the factor have a very little influence and remaining two point nine per cent
of the respondents replied that the factor have no influence in their decision making.
Out of the sample taken, 25.8 per cent of the respondents conveyed that the
influence of free gift in their decision making is high, 24.7 per cent of the respondents
conveyed that the factor have no influence, 19.8 per cent of the respondents conveyed
that the factor have a very little influence, 19.3 per cent of the respondents conveyed
that the factor have a little influence and remaining 10.4 per cent of the respondents
conveyed that the factor have a very high influence in their decision making.
Out of 450 respondents, 32.4 per cent of the respondents replied that the
influence of price discount in their decision making is little, 18.9 per cent of the
respondents replied that the factor have a high influence, 17.6 per cent of the
respondents replied that the factor have no influence, 17.3 per cent of the respondents
replied that the factor have a very little influence and 13.8 per cent of the respondents
replied that the factor have a very high influence in their decision making.
Out of the sample taken, 26.4 per cent of the respondents replied that the
exchange offer have no influence in their decision making, 26.3 per cent of the
respondents replied that the factor have a little influence, 23.1 per cent of the
respondents replied that the factor have a very little influence, 16 per cent of the
respondents replied that the factor have a high influence and eight point two per cent
of the respondents replied that the factor have a very high influence in their decision
making.
Out of the sample taken, 45 per cent of the respondents replied that the
recommendation of retailer have a high influence in their decision making, 28.7 per cent
of the respondents replied that the factor have a very high influence, 17.6 per cent of the
respondents replied that the factor have a little influence, five point eight per cent of the
respondents replied that the factor have a very little influence and two point nine per
cent of the respondents replied that the factor have no influence in their decision making.
TABLE – 37
CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF MEDIA OF
ADVERTISEMENT
No. of
Packet Milk Advertisement on
Media
(n:450)
Hand Bills 10 2.2
Hoardings on roadside 30 6.7
Magazine and News Paper 53 11.8
Television 301 66.9
Radio 56 12.4
Out of the sample taken for research, with regard to media of advertisement,
66.9 per cent of the respondents conveyed that through television they have seen
most of the packet milk advertisement, 12.4 per cent of the respondents conveyed that
through radio they have heard most of the packet milk advertisement, 11.8 per cent of
the respondents conveyed that through magazine and newspaper they have seen most of
the packet milk advertisement, six point seven per cent of the respondents conveyed that
through hoardings on roadside they have seen most of the packet milk advertisement
and two point two per cent of the respondents conveyed that through handbills they
have seen most of the packet milk advertisement.
Thus, substantial (66.9 per cent) of the respondents have seen most of the packet
milk advertisement through television and it is considered as one of the popular, growing
media attracting the mass through needful information.
TABLE – 38
CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF OPINION
ON RELEVANCE OF ADVERTISEMENT
Relevant and No. of

true facts in respondents Percentage
advertisement (n:450)
Very much
31 6.9
relevant
Much
196 43.6
relevant
Less relevant 195 43.3
Very Less
28 6.2
relevant
Out of the sample taken, with regard to the disclosure of relevant and true facts
in advertisement of packet milk, 43.6 per cent of the respondents replied that the packet
milk advertisement are much relevant, 43.3 per cent of the respondents replied that the
packet milk advertisement are less relevant, six point nine per cent of the respondents
replied that the packet milk advertisement are very much relevant and six point two
per cent of the respondents replied that the packet milk advertisement are very less
relevant.
TABLE-39
KENDALL COEFFICIENT OF CONCORDANCE (W) –ASSOCIATION
BETWEEN PROMOTIONAL INPUT VARIABLES

S
Kendall coefficient of concordance W 
1
 N)
3
2
k (N
12
K = number of judges; N= number of objects ranked; S   ( R j  R j )2
[1/12 K2 (N 3 – N)] = maximum possible sum of the squared deviations
i.e., the sum s would occur with perfect agreement among k rankings.
Ranks (promotional inputs variables) Mean Rank W Value
(i) Advertisement 3.90

(ii) Brand reputation 4.38
(iii) Free gifts 2.83 0.267
(iv) Price discount 2.97
(v) Exchange offer 2.53
(vi) Recommendation of retailer 4.38
Kendall‟s coefficient of concordance (W) value = 0.267
Inference
Kendall coefficient of concordance (W) value express 26.7 per cent inter-rater
agreement among 450 respondents who rated the stimuli of dairy company‟s promotional
input variables such as advertisement, brand reputation, free gifts, price discount, exchange
offer and recommendation of retailer. Promotional policy of packet milk varies from brand
to brand and area to area as expressed by respondents.
TABLE - 40
KRUSKAL-WALLIS TEST- OPINION OF THE RESPONDENTS IN THE
PROMOTIONAL ASPECT OF FREE GIFT
Null Hypothesis H0
There is no significant difference in the opinion of the respondents based on
educational qualification with the aspect of free gift for packet milk
2
12 k Rj
H    3  N  1
N  N  1 j 1 nj
Level of significance (α) =0.05
Calculation by Kruskal-Wallis test
Opinion Educational Qualification Number of Mean Value

Respondents Rank
(P)
(n) R)
Illiterate 66 244.88
ElementaryEducation 95 231.37
0.505
Free Gift 6th to 10th Standard 56 219.45
Higher Secondary Education 65 206.71
Graduate/Post Graduate/Diploma 168 223.86
Rj = sum of ranks in a given sample; k= number of samples
nj = size of a given sample;
N = Total number of observations in all samples= 450
P=Calculated value = 0.505
Inference
Calculated P value (0.505) > 0.05 (level of significance). Hence Ho is accepted.
There is no significant difference in the opinion of the respondents based on educational
qualification with the aspect of free gift for packet milk
TABLE - 41
BOX-PLOT–DISPERSION OF DIFFERENT OCCUPATION OF THE
RESPONDENTS ON THE BASIS OF EXCHANGE OFFER OF PACKET MILK
Opinion Occupation Valid Missing Total Per cent

Cases Cases Cases
(N)
Exchange Government 28 0 28 100%
offer
Private 29 0 29 100%
Business 19 0 19 100%
Housewife 374 0 374 100%
Total 450 0 450 100%
Range: Distance between the extreme and lengths of the box
Inter quartile range : Q3-Q1
Median : Q2
First quartile : Q1
Third quartile : Q3
Bowleys coefficient of skewness : Q3 + Q1 – 2 Q2

Q3 – Q1
4
exchange offer
GOV PVT BUSS housewife
emp details
Figure 7
Box Plot
Dispersion of different occupation of the respondents, with regard to the exchange
offer of packet milk
Inference
As per Box-plot diagram, Government, Private, Business and Housewife
expressed their consensus opinion, that “the exchange offer” has “no influence” in the
buying decision of packet milk. Private occupants expressed their opinion that the
“exchange offer” has “no influence” in the buying decision of packet milk. Skewness of
the data is exhibited in the plot diagram; this suggests that the data is non-symmetrical.
Hence this study requires non- parametric tests such as Mann-Whitney U test, Kruskal-
Wallis test and Kendall Coefficient of concordance.
DISTRIBUTION
TABLE – 42
CLASSIFICATION OF THE RESPONDENTS ACCORDING TO THE SOURCE
OF MILK SUPPLY
Source of Milk No. of Respondents

Percentage
Supply n:450
Door Delivery 184 40.9
Milk shops 69 15.3
General Stores 197 43.8
Out of 450 respondents, 40.9 per cent of them conveyed that they purchase
packet milk through door delivery, 43.8 per cent of them conveyed that they purchase
packet milk through general stores and only 15.3 per cent of them conveyed that they
purchase packet milk through milk – shops. Hence, more than one – third (43.8%) of
them are purchasing packet milk through general stores.
TABLE –43
CLASSIFICATION OF THE RESPONDENTS ON THE BASIS OF OPINION ON
RETAIL DISTRIBUTION SYSTEM OF PACKET MILK
No. of respondents in Percentage

Sl.
Variables
No.
Very Very
Good Poor
Excellent Good poor
Convenient time of
1. 32.2 28.2 30.7 8.9 -
supply
Immediately
2. available (or) no 22.0 34.0 35.1 8.9 -
waiting time
3. Proximity of house 27.8 28.9 36.0 7.3 -
4. Home delivery 21.3 31.1 41.1 3.6 2.9
Supply of Packet
5. 29.3 33.8 34.0 2.9 -
milk
Convenient Quantity
6. 18.0 27.3 44.0 7.8 2.9
availability
7. Reliability of seller 16.9 27.1 46.0 5.6 4.4
Convenient location
8. 13.3 27.3 46.0 9.8 3.6
of retail outlet
Customer
9. 13.8 26.2 39.1 15.1 5.8
relationship
Out of 450 respondents, 32.2 per cent of them conveyed that the retail outlet
service on convenient time of supply of packet milk is excellent, 30.7 per cent of them
conveyed that it is good, 28.2 per cent of them conveyed that it is very good and eight
point nine per cent of them conveyed that it is poor.
Out of the sample taken for research, 35.1 per cent of them conveyed that the
retail outlet service on immediately available or no waiting time is good, 34 per cent of
them conveyed that it is very good, 22 per cent of them conveyed that it is excellent and
eight point nine per cent of them conveyed that it is poor.
Out of the sample taken, 36 per cent of them conveyed that the retail outlet
service on proximity of house is good, 28.9 per cent of them conveyed that it is very
good, 27.8 per cent of them conveyed that it is excellent and seven point three per cent of
them conveyed that it is poor.
Out of the sample taken for research, 41.1 per cent of them conveyed that the
retail outlet service on home delivery is good, 31.1 per cent of them conveyed that it is
very good, 21.3 per cent of them conveyed that it is excellent, three point six per cent of
them conveyed that it is poor and two point nine per cent of them conveyed that it is very
poor.
Out of 450 respondents, 34 per cent of them conveyed that the retail outlet service
on supply of packet milk is good, 33.8 per cent of them conveyed that it is very good,
29.3 per cent of them conveyed that it is excellent and two point nine per cent of them
conveyed that it is poor.
Out of the sample taken, 44 per cent of them conveyed that the retail outlet
service on convenient quantity availability of packet milk is good, 27.3 per cent of them
conveyed that it is very good, 18 per cent of them conveyed that it is excellent, seven
point eight per cent of them conveyed that it is poor and two point nine per cent of them
conveyed that it is very poor.
Out of 450 respondents, 46 per cent of them conveyed that the retail outlet
service on reliability of seller of packet milk is good, 27.1 per cent of them conveyed that
it is very good, 16.9 per cent of them conveyed that it is excellent, five point six per cent
of them conveyed that it is poor and four point four per cent of them conveyed that it is
very poor.
Out of 450 respondents, 46 per cent of them conveyed that the convenient location
of retail outlet service of packet milk is good, 27.3 per cent of them conveyed that it is
very good, 13.3 per cent of them conveyed that it is excellent, nine point eight per cent of
them conveyed that it is poor and three point six per cent of them conveyed that it is very
poor.
Out of the sample taken, 39.1 per cent of them conveyed that customer
relationship is good, 26.2 per cent of them conveyed that it is very good, 15.1 per cent of
them conveyed that it is poor, 13.8 per cent of them conveyed that it is excellent and five
point eight per cent of them conveyed that it is very poor.
TABLE- 44
FACTOR ANALYSIS – OPINION ON THE BASIS OF RETAIL DISTRIBUTION
SERVICE FACTOR
X1 Time of Supply convenient .431 .505
X2 Immediately available / no .619 .301

waiting time
X3 Proximity of house -.003 .803
X4 Home delivery .251 .582
X5 Supply of packet milk .143 .788
X6 Convenient quantity availability .714 .249
X7 Reliability of seller .736 .115

X8 Convenient location of retail .743 .110
outlet
X9 Customer relationship .647 .047
Kaiser Normalization a Rotation converged in three iterations.
Output of factor analysis
*Convenient location of retail *Proximity of house (X3)

outlet(X8)
*Reliability of seller (X7) *Supply of packet milk(X5)
*Convenient quantity * Home delivery (X4)

availability (X6)
Location and availability Supply oriented factors

factors
Inference
Factor analysis method has been advocated to simplify large number of retail
distribution factors, for a set of respondents to a smaller number of variables. Retail
distribution factors are simplified and segmented into two groups of factors, with respect to
opinion of the respondents. Convenient location of retail outlet(X8), reliability of seller (X7) and
convenient quantity availability (X6) are segmented as the location and availability factors,
under Group-1 factor. Proximity of house (X3), supply of packet milk(X5) and home delivery
(X4) are segmented as supply oriented factors, under Group-2 factor .
All leading companies implement the recommendation of research organizations, in
designing the service facility; as part of packet milk marketing mix-distribution policy.
TABLE-45
KRUSKAL-WALLIS TEST-OPINION OF THE RESPONDENTS IN THE DISTRIBUTION
ASPECT OF HOME DELIVERY SERVICE OF PACKET MILK
Null Hypothesis H0
There is no significant difference in the opinion of the respondents segmented on
monthly income with the aspect of satisfaction on home delivery service of packet milk.
Level of significance (α) =0.05
Calculation by Kruskal-Wallis test 2

12 k Rj
H    3  N  1
Opinion Monthly Income in
Rupees 
Number of
Respondents  Mean
N N  1 (n)j 1 Rank
n j (R)
Value (P)
Home < 5000 99 84.30

Delivery 5001-10000 52 101.94
10001-15000 19 96.08
0.168
15001-20000 9 109.33
>20000 5 112.70
Rj = sum of ranks in a given sample

k= number of samples
nj = size of a given sample;
N = Total number of observations in all samples= 184
P=Calculated value = 0.168
Inference
Calculated P value (0.168)> 0.05 (level of significance). Hence Ho is accepted.
There is no significant difference in the opinion of the respondents segmented on monthly
income with the aspect of satisfaction on home delivery service of packet milk.
UHT- PACKET MILK
TABLE – 46
PERCEPTION OF THE RESPONDENTS ABOUT
UHT – PACKET MILK
No. of
Awareness about
UHT – Packet milk
(n:450)
No 450 100
Yes - -

UHT-PACKET MILK:
Commercial sterilization process is referred as ultra-high temperature (UHT)
processing. The shelf-life is determined by the filling process and type of packaging. An
aseptically packaged UHT-processed milk can be stored for six or more months without
refrigeration, and it will maintain their nutritional integrity. Out of the 450 sample, all the
respondents replied that they have no awareness of the availability of UHT-packet milk.
TABLE –47
OPINION OF THE RESPONDENTS TO VARIOUS
FEATURES OF UHT – PACKET MILK
No. of respondents in Percentage

Sl.
Variables
No.
Very high High Less Very less
importance importance Importance Importance
Ready – to 15.6
1. 20 26 38.4
use nature
Shelf life of 23.1

2. 19.3 34.0 23.6
six month
Eco –
10.1
3. friendly 25.6 38.7 25.6
packaging
No use of
preservatives 10.2
4. 23.6 39.8 26.4
(Natural
Milk)
No need of
5. 23.6 23.6 31.8 21.0
refrigeration
Out of the sample taken, with regard to the aspect of ready – to use nature of UHT
packet milk, 38.4 per cent of them replied that they give less importance to the aspect, 26
per cent of them replied that they give high importance, 20 per cent of them replied that
they give very high importance to the aspect and 15.6 per cent of them replied that they
give very less importance to the aspect.
Out of 450 respondents, 34 per cent of them conveyed that they give high
importance to the shelf – life of six months aspect of UHT – packet milk, 23.6 per cent
of them conveyed that they give less importance to the aspect, 23.1 per cent of them
conveyed that they give very less importance to the aspect and 19.3 per cent of them
conveyed that they give very high importance to the aspect.
Out of the sample taken for research, with regard to the eco – friendly packing
aspect of UHT- packet milk, 38.7 per cent of them replied that they give high importance
to the aspect, 25.6 per cent of them replied that they give very high importance, 25.6 per
cent of them replied that they give less importance to the aspect and 10.1 per cent of
them replied that they give very less importance to the aspect.
Out of the sample taken, with regard to the preservatives not added or natural
milk aspect of UHT – packet milk, 39.8 per cent of them conveyed that they give high
importance to the aspect of natural milk, 26.4 per cent of them conveyed that they give
less importance to the aspect, 23.6 per cent of them conveyed that they give very high
importance to the aspect and 10.2 per cent of them conveyed that they give very less
importance to the aspect.
Out of the sample taken for research, with regard to the no need of refrigeration
requirement aspect of UHT packet milk, 31.8 per cent of them replied that they give less
importance to the aspect, 23.6 per cent of them replied that they give very high
importance, 23.6 per cent of them replied that they give high importance to the aspect
and 21.0 per cent of them replied that they give very less importance to the aspect of
UHT packet milk.

TABLE – 48
RESPONDENTS INTEREST TO PURCHASE UHT – PACKET MILK
No. of
Purchase interest of UHT –
Packet Milk
(n:450)
Highly interested 118 26
Interested 178 39.6
Less interested 67 15
Very less interested 39 8.7
Not interested 48 10.7
Out of the sample taken for research, with regard to the purchase interest of UHT
– packet milk, 39.6 per cent of them conveyed that they are interested to purchase the
UHT-packet milk, 26 per cent of them conveyed that they are highly interested to
purchase the UHT – packet milk, 15 per cent of them conveyed that they are less
interested to purchase the UHT – packet milk, ten point seven per cent of them conveyed
that they have no interest to purchase the UHT – packet milk and eight point seven per
cent of them conveyed that they are very less interested to purchase the UHT – packet
milk.
TABLE – 49
REASON FOR PURCHASE PREFERENCE OF UHT-PACKET MILK
Sl.
Variables Rank
No.
Don‟t need to get up early in the 5
1.
morning
2. No need of refrigeration 7
3. Shelf – life of six months 6
4. No-use of preservatives(Natural milk) 3
5. Ready-to-use nature 4
6. Eco-friendly packaging 2
7. Usage convenience 1
Respondents expressed their purchase preference, based on the features of UHT-
packet milk. Usage convenience aspect has been rated as first feature of choice to
influence the purchase decision of UHT-packet milk, eco-friendly packaging aspect has
been rated as second feature of choice to influence the purchase decision of UHT-packet
milk, no-use of preservatives(natural milk) aspect has been rated as third feature of
choice to influence the purchase decision of UHT-packet milk, ready to use nature of
UHT-packet milk has been rated as fourth feature of choice to influence the purchase
decision UHT-packet milk, don‟t need to get up early in the morning aspect has been
rated as fifth feature of choice to influence the purchase decision of UHT-packet milk,
shelf – life of six months aspect has been rated as sixth feature of choice to influence the
purchase decision of UHT-packet milk and no need of refrigeration aspect has been rated
as seventh feature of choice to influence the purchase decision of UHT-packet milk.
TABLE- 50
FACTOR ANALYSIS – OPINION ON THE BASIS OF PRODUCT
DEVELOPMENT FEATURES
X1 ready-to-use nature .696 -.057
X2 Shelf life of Six months .579 -.099
X3 Eco-friendly packaging .603 .103
X4 No use of preservatives (Natural milk) .637 .062
X5 No need of refrigeration facility .654 .009
X6 Don‟t need to get up in the early morning . -.034 .890
X7 Usage Convenience -.043 -.882
Kaiser Normalisation a Rotation converged in three iterations.
Output of factor analysis
* ready-to-use nature (X1) * Don‟t need to get up in

the early morning (X6)
* No need of refrigeration * Usage Convenience (X7)

facility (X5)
* No use of preservatives
(Natural milk)( X4)
Special properties of UHT- Comfortable feature of

packet milk UHT- packet milk
Inference
Factor analysis method has been advocated to simplify large number of product
variables, for a set of respondents to a smaller number of variables. UHT-packet milk
variables are simplified and segmented into two groups of factors, with respect to opinion of
the respondents. Ready-to-use nature (X1), no need of refrigeration facility (X5) and no use
of preservatives (natural milk) (X4) are segmented as the special properties of UHT (Ultra
High Temperature)-packet milk, under Group-1 factor. Don‟t need to get up in the early
morning (X6) and usage convenience (X7) are segmented as comfortable features of UHT-
packet milk, under Group-2 factor.
All leading companies implement the recommendation of research organizations, in
designing the product development features; as part of packet milk marketing mix- product
development policy.
CHAPTER V
FINDINGS, CONCLUSION AND SUGGESTIONS
FINDINGS
Findings of the study on the level of satisfaction of consumers in the peri-urban
area of Tiruchirappalli on the marketing mix for packet milk are given below:
1. Thirty seven point three per cent of the respondents are qualified with graduate
/ post graduate / diploma.
2. Fifty three point six per cent of them are having less than
Rs. 5000 as their monthly income of the household.
3. Eighty two point nine per cent of the respondents are housewives.
4. Thirty nine per cent of the respondents are private employees.
5. Eighty two point two per cent of the respondents belong to nuclear family.
6. Seventy one point eight per cent of the respondents are non- vegetarian.
7. Forty seven point eight per cent of the households are spending less than
Rs.300/- on milk per month.
8. Forty seven point eight per cent of the households are utilizing less than 500ml
of milk per day.
9. Forty seven point six per cent of the respondents are using packet milk without
knowing the type of it.
10. Majority of the respondents quality rating is good on performance of various
features of packet milk like taste, freshness, thickness, hygienic, fitness for
infant consumption, digestion, making coffee (or) tea, curd making, making
milk sweets and making milk drinks.

11. Twenty nine point six per cent of the respondents choice is Aavin brand of
packet milk.
12. Among the four hundred and fifty respondents, three hundred and thirty three
respondents are satisfied with the presently using brand and one hundred and
seventeen respondents are not satisfied with their presently using brand. In this
one hundred and seventeen respondents, thirty five of the respondents alternate
choice is Arokya brand.
13. Preferential choice of packet milk with respect to marketing mix practices is
found to be evaluated by 450 respondents. The respondents expressed their
brand preference as follows: Aavin has been preferred as a first product of
choice, Arokya has been preferred as a second product of choice, Chakra has
been preferred as a third product of choice, Sakthi has been preferred as a
fourth product of choice, Vijay has been preferred as a fifth product of choice,
V.K.A. has been preferred as a sixth product of choice, Komatha has been
preferred as a seventh product of choice, Taste me has been preferred as a
eighth product of choice, Achaya has been preferred as a ninth product of
choice and Tamil has been preferred as a tenth product of choice on the basis
of marketing mix practices adopted for marketing packet milk.
14. Forty seven point one per cent of the respondents have used two brand of
packet milk.
15. Forty two per cent of the respondents are moderately satisfied with the sachet
packing.
16. Among the four hundred and fifty respondents, three hundred and ninety one
respondents are having the habit of looking the date of the milk packing and
fifty nine respondents are not having the habit of looking the date of milk
packing. In this three hundred and ninety one respondents, one hundred and
thirty two respondents are always looking the date of milk packing.
17. Forty nine point eight per cent of the respondents have no inconvenience with
sachet type of milk packing.
18. Among the four hundred and fifty respondents, three hundred and thirty one
respondents are preferring to have a packet milk in less than 250ml sachet. In
this three hundred and thirty one respondents, one hundred and thirteen
respondents are occasionally preferring a packet milk in less than 250ml
sachet.
19. Three hundred and thirty one respondents are preferring to have a packet milk
in less than 250ml sachet, in this one hundred and twenty four respondents are
preferring to have a 100ml sachet.
20. Thirty two point nine percent of the respondents opinion to the expected
aspects of ideal packing method is protection.
21. Among the four hundred and fifty respondents, three hundred and seventy six
respondents have no awareness of the non- degradable nature of plastic where
as seventy four respondents are aware of the non- degradable nature of plastic.
In this seventy four respondents, forty four of them replied that television has
created the awareness of non- degradable nature of plastic.

22. Fifty three point six pre cent of the respondents disposed plastic bags by
selling.
23. As it is exhibited in factor analysis method, all leading companies implement
the recommendation of research organizations, in designing the features of the
product; as part of packet milk marketing mix-product policy. Freshness, taste
and thickness features are segmented as the important properties of packet
milk. Making milk drinks, making milk sweets and making curd are segmented
as the important purpose of packet milk.
24. Testing of hypothesis by Chi-square test confirms that the education of the
respondents have no influence on their opinion on type of packet milk
purchased.
25. Testing of hypothesis by Chi-square test confirms that the occupation of the
respondents have no influence on their opinion on hygienic quality of packet
milk.
26. Preference data were collected from each respondent, to simply rank order the tenth
product-owned packet milk companies; from the most preferred to the least
preferred, on the basis of marketing mix practices. Aavin, Arokya, Chakra, Vijay,
Komatha and Achaya seem to be classified as products of the same “higher price”
group and competitive with higher price-active marketing mix practices. Sakthi and
Taste me seem to be classified as products of “medium price” group and
competitive with medium price-active marketing mix practices. V.K.A. and Tamil
seem to be classified as products of “lesser price” group and competitive with lesser
price-active marketing mix practices.

“Aavin” ranked as the number one product by the women respondents, with
their preferential score; based on marketing mix practices, “Aavin” has the largest
market share in this region and the respondents preferred the packet milk for its
product and distribution mix. “Arokya” is rated as second product. Promotional and
product mix have high influence on the respondents preference. “Chakra” is rated
as third product. Distribution factors have high influence on the respondents
preference. “Sakthi” is rated as fourth product. Price and product mix have high
influence on the respondents preference. “Vijay” is rated as fifth product.
Distribution factors have high influence on the respondents preference. “V.K.A.” is
rated as sixth product. Price and distribution mix have high influence on the
respondents preference. “Komatha” is rated as seventh product. Promotional and
product mix have high influence on the respondents preference. “Taste me” is rated
as eighth product. Distribution factors have high influence on the respondents
preference. “Achaya” is rated as ninth product. Distribution factors have high
influence on the respondents preference. “Tamil” is rated as tenth product. Price
and distribution mix have high influence on the respondents preference. All these
products were evaluated by respondents, on the basis of marketing mix practices
adopted for marketing packet milk in the peri-urban area of Tiruchirappalli.
27. Seventy seven point eight per cent of the respondents are of
opinion that price have no influence in their purchase decision of packet milk.
28. Sixty eight point two per cent of the respondents are extremely satisfied with
the price of packet milk.

29. Testing of hypothesis by Mann-Whitney U Test confirms that there is no
significant difference in the opinion of nuclear and joint family type of
respondents towards price satisfaction of packet milk.
30. Majority of the respondents are highly influenced by the promotional factors
like advertisement, brand reputation, free gift and recommendation of retailer
where as price discount have a little influence and exchange offer have no –
influence in their purchase decision.
31. Sixty six point nine per cent of the respondents have seen most of the packet
milk advertisement through television.
32. Forty three point six per cent of the respondents says that the packet milk
advertisement disclose much relevant and true facts.
33. As it is found in Kendall coefficient of concordance (W) test, the value of W
indicates 26.7 per cent inter-rater agreement, among 450 respondents who
rated the stimuli of dairy company‟s promotional input variables such as
advertisement, brand reputation, free gifts, price discounts, exchange offer and
recommendation of retailer.
34. Testing of hypothesis by Kruskal-Wallis Test confirms that there is no
significant difference in the opinion of the respondents based on educational
qualification with the aspect of free gift for packet milk.
35. It is revealed from Box-plot diagram, Government, Private, Business and
Housewife expressed their consensus opinion, that “the exchange offer” has
“no influence” in the buying decision of packet milk. Private occupants

expressed their opinion that the “exchange offer” has “no influence” in the
buying decision of packet milk.
36. Forty three point eight percent of the respondents are purchasing packet milk
through general stores.
37. Majority of the respondents opinion is good with regard to the service of retail
distribution system like immediately available (or) no waiting time, proximity
of house, home delivery, supply of packet milk, convenient quantity
availability, reliability of seller, convenient location of retail outlet and
customer relationship where as with regard to the convenient time of supply of
packet milk, the respondents opinion is excellent.
the recommendation of research organizations, in designing the service
facility; as part of packet milk marketing mix-distribution policy. Convenient
location of retail outlet, reliability of seller and convenient quantity
availability are segmented as the location and availability factors. Proximity of
house, supply of packet milk and home delivery are segmented as supply
oriented factors.
39. Testing of hypothesis by Kruskal-Wallis Test confirms that there is no
significant difference in the opinion of respondents segmented on monthly
income with the aspect of satisfaction on home delivery service of packet milk.
40. All the respondents have no awareness about the availability of UHT –
packet milk.
41. Majority of the respondents are giving high importance to the aspect of shelf
– life of six months, eco-friendly packaging and no use of preservative
(natural milk) where as they give less importance to the aspect of ready - to –
use nature and no need of refrigeration facility of UHT packet milk.
42. Thirty nine point six per cent of the respondents are interested to purchase the
UHT – packet milk.
43. The respondents expressed their feature preference of UHT-packet milk as
follows: Usage convenience aspect has been rated as first feature of choice to
influence the purchase decision of UHT-packet milk, eco-friendly packaging
aspect has been rated as second feature of choice to influence the purchase
decision of UHT-packet milk, no-use of preservatives(natural milk) aspect has
been rated as third feature of choice to influence the purchase decision of UHT-
packet milk, ready to use nature of UHT-packet milk has been rated as fourth
feature of choice to influence the purchase decision of UHT-packet milk, don‟t
need to get up early in the morning aspect has been rated as fifth feature of choice
to influence the purchase decision of UHT-packet milk, shelf – life of six months
aspect has been rated as sixth feature of choice to influence the purchase decision
of UHT-packet milk and no need of refrigeration aspect has been rated as seventh
feature of choice to influence the purchase decision of UHT-packet milk.
the recommendation of research organizations, in designing the product
development features; as part of packet milk marketing mix-product
development policy. Ready-to-use nature, no need of refrigeration facility and

no use of preservatives (natural milk) are segmented as the special properties
of UHT-packet milk. Don‟t need to get up in the early morning and usage
convenience are segmented as comfortable features of UHT- packet milk .
CONCLUSION
The organized sector retails five categories of milk namely i) toned packet milk
ii) standardized packet milk and iii) premium packet milk iv)double toned packet milk
and v)UHT packet milk. The knowledge regarding the type of packet milk is very
minimum. Among 450 respondents, 31 respondents are using toned packet milk, 62
respondents are using standardized packet milk, 143 respondents are using premium
packet milk and 214 respondents are using packet milk without knowing the type of it.
The most preferred brand of packet milk is Aavin and the second choice of
packet milk is Arokya brand. The reason for the purchase preference of packet milk are
taste, thickness and freshness. Many of the respondents have used two brands of packet
milk.
The hypotheses, occupation of the respondents have no influence on their opinion
on hygienic quality of packet milk is accepted. This is done by Chi-square test.
The respondents have the habit of looking the milk date of packing. Among the
450 respondents, 391 respondents are having the habit of looking the date of milk
packing and 59 respondents are not having the habit of looking the date of milk packing.
With regard to the problem of packet milk, many of the respondents say that there is no-
inconvenience.
The respondents preference to less than 250ml sachet is high, particularly for
100ml packet milk. Many view that protection as the expected aspect of ideal packing
and the knowledge regarding the non-degradable nature of plastic is very minimum. It is
through television few had the knowledge of non-degradable nature of plastic. Most of
the respondents disposed sachet bags by selling.
Price has no influence in their purchase decision of packet milk and the
respondents are extremely satisfied with the price of packet milk. Among 450
respondents, 68.2 per cent of the respondents conveyed that they are extremely satisfied
with the price of packet milk, 23.6 per cent of the respondents conveyed that they are
very much satisfied with the price of packet milk and remaining eight point two per cent
of the respondents conveyed that they are moderately satisfied with the price of packet
milk.
The hypotheses, type of family have no significant difference towards their
opinion on price satisfaction packet milk is accepted. This is done by Mann-Whitney U
test.
The respondents are classified according to the influence of promotional factors,
they view that advertisement, brand reputation, free gifts and recommendation of retailer
have high influence on their purchase decision of packet milk.
The hypotheses, educational qualification of the respondents have no significant
difference on the promotional free gift factor of packet milk is accepted. This is done by
Kruskal-Wallis test.
The respondents opinion is good with regard to the service of retail distribution
system like immediately available (or) no waiting time, proximity of house, home
delivery, assured supply of packet milk, convenient quantity availability, reliability of

seller, convenient location of retail outlet and customer relationship whereas with regard
to the convenience of time of supply the respondents opinion is excellent.
The hypotheses, monthly income of the respondents have no significant
difference on the satisfaction of home delivery service of packet milk is accepted. This is
done by Kruskal-Wallis test.
Commercial sterilization process is referred as Ultra-High Temperature (UHT)
processing. The shelf-life is determined by the filling process and type of packaging. An
aseptically packaged UHT-processed milk can be stored for six (or) more months without
refrigeration and it will maintain their nutritional integrity. Among the 450 respondents,
there is no awareness regarding the availability of UHT-packet milk, but they are
interested to purchase the UHT-packet milk. Majority of them have given high
importance to the shelf-life of six months, eco-friendly packaging and no use of
preservative (natural milk) aspect of UHT-packet milk where as ready-to-use nature and
no need of refrigeration features of UHT-packet milk are given less importance by them.
SUGGESTIONS
Based on the findings, the researcher makes the following suggestions for the
improving the satisfaction of consumers on the marketing mix for packet milk in the peri-
urban area of Tiruchirappalli. These suggestions have emanated from the discussion, the
researcher had with the (women) respondents, retailers, distributors and sales
representatives of packet milk. Suggestions are recommended to improve the satisfaction
of consumers, to promote marketing mix practices of dairy industry, to the government to
create a healthy citizen, to the producer and to the marketer of packet milk to discharge
their corporate social responsibility to the state, government, society and consumers.
Liquid milk marketing must focus on the concept of market segmentation to
identify the profile of distinct buyer groups who may require a value – added liquid
milk variant. For example, flavored milk, fortified milk, dietary milk and so on. Which
can be targeted at health and fitness, conscious young working people, nutrition
conscious households, children and the aged.
We can also introduce 200 ml tetra pack of milk and flavoured milk like that of
bottle drinks. They can be positioned as fun and fitness products and can be provided to
children in schools and colleges and for adults working in office, while traveling and on
excursion and picnics.
The market for these products will not be confined to large cities, but will exist
in small towns and developing urban corridors too. Exploiting these opportunities
requires safe and secure packaging, treatment to maximize the shelf – life of milk and
cold chain from manufacturer to retailer.
The relationship between the distribution channel members and customers have
not been very healthy. It have to be improved . These relationship muse be built on
trust. Such relationship in turn will build consumer confidence in quality and safety of
milk.
The marketer can also strengthen his position with current customers by
improving the service programme like forming complaint redressal cell for each brand,
attending every customer complaint within 24 hours, making the products available
through out the day, giving the home delivery (at no extra cost, if possible or a
nominal service charge acceptable to customers), provide flexibility to customer to
change his demand and so on. Such activities will help increasing the sales.
Mostly, the buying decisions are made by women irrespective of whether the
family size is small (or) large, the manufacturers should focus their attention on women
for the successful positioning of the product. Now – a – days the nuclear family system
has come into vogue. In the nuclear family, children dominate the buying decision. Even
though the buying decision is made by the housewives, this decision would also be
influenced by the children in the long run. So the marketers could position their product
through children-oriented advertisements.
A product could be positioned only through sales promotional activities. Among
the many attributes available for positioning a packet milk, it was found that
perceived quality, brand image, retail outlet service message contributed considerably
towards attracting a large number of customers. Besides, attributes such as health and
higher quality – lower cost (or) value for money (or) the offer of free gift (or) extra
quantity to be included within the offer - price, (or) the offer of discount price may
position the product, if they are changed at a regular intervals of period.
The nutritive value of milk benefits is lacking among the public. The
advertisement with public interest can display the benefit of an intake of 100 grams of
milk in meeting the requirement of many essential nutrients of the human, could promote
healthy milk drinking habit in the minds of many. In a way the manufactures can create a
good image for their concern.
Neutraceuticals are the food that provide benefit beyond basic nutrition and
prevent diseases and or promote health. This image can also be focused to increase
their sales.
Supply of milk in the form of toned, double toned, premium and standardized
milk availability on the basis of fat content should be informed to the consumer. This
knowledge is lacking among the consumers. It should be highlighted through publicity.
So that they can purchase milk on the base of their requirements.
At present in nutritious meal scheme rice, dhal, vegetables, banana are provided,
for improving the health of children from preschool to X std in varied proportions. In
addition, eggs are given to all the children once a week. Milk is missing in the present
scheme. Hence milk in the nutritious meal scheme can be revived to improve the health
of poor children.
The per capita consumption of milk in rural area(70gm) is far below the
recommended level (250gm). The milk manufacturers can adopt a village and can freely
supply milk to the schools in the villages. Such a service will increase the attendance in
schools, and avoid malnutrition among the poor children and also inculcate the habit of
drinking milk.
The total milk production in Tamil Nadu is 120 lakhs litres per day. The Aavin is
procuring 20 lakhs litres per day and the rest of the milk is handled by the private dairies,
cycle vendors and so on. The Government and organized sector declaring weekly milk
route holidays. Farmers are suffering with delayed payment. Restricted procurement,
under payment and non-payment because of the surplus milk. The surplus milk is
converted into skimmed milk powder and ghee. The annual skim milk powder production
by Aavin is about 12,000 MT. The accumulated stock of milk powder has lead to milk
dues and the milk producers are unable to get timely payment for their milk supply. The
surplus milk can be made available through the nutritious meal scheme and it indirectly
helps the milk producers to get their milk dues in time.
The Chinese School Milk Programme (CSMP) has shown a new path by creating
an institutional market demand for milk. CSMP is a city-based operation, executed
entirely through the private sector, which drives the programme. There are no
government subsidies. Milk is sold to urban school children at a discounted price. CSMP
was designed to foster economic growth in the agro food industry and through this
growth the operators within the value chain are freed from poverty. Such a programme
can be adopted by the dairy industry for urban school children in India and the
programme will help to modify the consumption habits of children and the family
members.
Advertisement affects perception through advertisements the marketer can
highlight the uniqueness of his product in terms of quality, taste and variety, catchy
slogan / headlines, experience of the consumer (end user), celebrity, price – quality,
packing, price – health, excellent service and most importantly great value for money
(or) higher quality lower cost product. Such information can make them more
knowledgeable about the product and improves sales.
In a vast packet milk market, product which come out with good quality and
reasonable price could survive among the fittest during the long period. The customer
also feel that among the many existing brands, no single brand can be termed excellent
in its performance and opine that such a brand is yet to evolve. The marketing
manager should take this fact into account and try to fill up the gap through price
quality positioning.
The marketer should ascertain the effectiveness of advertisement and other
promotional activities. Besides, he should consider the culture, customers financial
circumstances and emotional make-up like reliability, smartness, modernity and
contemporaneity. He should also conduct a market / survey or research. He can gather
information about the gap (or) niche (or) vacuum in the mind of the consumers about
the marketing element of packetmilk – through such a survey / research and based on
its findings, he can position or reposition the product.
The customer demand of high quality, hygiene and safety, long shelf–life,
convenience in handling, usage and dispensing as well as environmental concerns can
be satisfied through aseptic processing and packaging technology. It refers to a
technique in which food is commercially sterilized outside of the package and
aseptically packed in a previously sterilized package and hermetically sealed. Aseptic
packaging offers altogether advantage to the consumers (improved product quality,
freshness) as well as to distribution channels (lower distribution and storage costs,
more appropriate shelf life, relief of pressure on chilled cabinet, cost effective and
free from additives).
The high quality of the end product will make this technology more prevalent in
the market as consumers are becoming more conscious about the nutritive value of
foods and leading a healthy life style.
Further, efficient consumer awareness and education programmes, market
promotion activities and effective distribution - channel management with a vast
distribution network to maintain direct relationship with the consumers is essential, as
the dairy products market transit to supply driven situation, the dairy firms has to
make his marketing very effectiveness in all the functional areas. This can help the
industry to gain customer loyalty and above all the demand expansion.
QUESTIONNAIRE
A STUDY ON THE LEVEL OF SATISFACTION OF CONSUMERS IN THE

PERI-URBAN AREA OF TIRUCHIRAPPALLI ON THE MARKETING MIX
FOR PACKET MILK
DEMOGRAPHIC
1. Name :
2. Zone Name :a. K.Abishekapuram b. Srirangam c .Ponmalai
d. Ariyamangalam
3. Age : a. 21-30 b. 31-40 c. 41-50 d. 51-60 e. Above 60
4. Education : a. Illiterate b.Elementary Education c. 6th to 10th standard
d. Higher Secondary e. Graduate/ Post graduate/Diploma
5. Monthly household income of your family:
a. less than 5000 rupees/month b. 5001 to 10,000 rupees/month
c. 10,001 to 15,000 rupees/month d. 15,001 to 20,000 rupees/month
e.above 20,000 rupees/month
6. Occupation of the respondent:

1.housewife 2.employed
If employed
b. Government b. Private
c. Business d. other (please specify)------------------------------------- -----
7. Type of family:
c. Nuclear b. Joint
8. Food Habit:
d. Vegetarian b. Non-Vegetarian
9. Monthly Milk Expenditure: Rs.-------------------------------------
PRODUCT
10. Daily consumption of milk: ______________________ltrs

11. Type of packet milk purchased (Tick any one)
a.Toned packet milk b. Standardized packet
milk
c.Premium packet milk e. Double Toned packet milk

d. Do not know the type of packet milk
12. Evaluating packet milk in terms of product features?

S.No Features Excellent Very Good Poor Very
good poor
1 Taste
2 Freshness
3 Thickness
4 Hygienic
5 Fit for infant consumption
6 Digestion
7 Making Coffee or Tea
8 Curd Making
9 Making Milk Sweets
10 Making Milk Drinks

13.Which brand of packet milk you buy most often? (Tick any one)
Presently using brand

name
Aavin
Arokya
Sakthi
Vijay
V.K.A
Chakra
Tamil
Taste me
Achaya
Komatha
Any other (name)-------

14. Are you satisfied with your brand of packet milk?
a. Yes b.No
If No, which brand you wish to switch over? (Tick any one)
Brand name
Aavin
Arokya
Sakthi
Vijay
V.K.A
Chakra
Tamil
Taste me
Achaya
Komatha
Any other (name)-------

15. What is your preferential choice of purchase with respect to marketing mix
practices of following companies packet milk?
S. No Brand name Rank 1 to 10
1 Aavin
2 Arokya
3 Sakthi
4 Vijay
5 V.K.A
6 Chakra
7 Tamil
8 Taste me
9 Achaya
10 Komatha
16. Tick off the number of packet milk brands consumed by you?
a. One brand b. Two brands c. Three brands d. Four brands
e. More than four brands.
17. How much you are satisfied with the sachet type of milk packing?
a. Extremely satisfied b. Very much satisfied c. Moderately satisfied
d. Poorly satisfied e. Not satisfied.
18. Do you see the date of milk packing?
a. Yes b. No
If yes, frequency of looking the date of milk packing?
a. Always b. Frequently c. Occasionally
d. Rarely
19. The kind of problem, that you have with regard to sachet type of milk
packing?
Reason for problem

S.No
(Tick any one)
1 No inconvenience
2 Problem of adulteration
3 Need refrigeration facility
4 Only 3 days shelf-life
5 Packing is not good
6 Plastic smell in milk
7 Any other (please specify)----
20. Do you prefer to purchase a packet milk in less than 250ml sachet?
a. Yes b. No
If yes, how often do you prefer to purchase a packet milk in less than 250ml
sachet and in what quantity do you prefer?
Frequency of preference Quantity preferred

(Tick any one) (Tick any one)
Always 100ml
Frequently 150ml
Occasionally 200ml
Rarely
21. Expectation on ideal packing method?
a. Protection b. Convenience c. Attractiveness d. Bio-degradability
e. Promotion
22. Are you aware of the non-degradable nature of plastic?
a. Yes b. No
If yes, say the source created the awareness of non-degradable nature of

plastic?
a. Television b. Radio
c. Newspaper & Magazine d. Any other (please specify)---
23. How do you dispose the plastic bags?
a. Sewage disposal b. Dustbin
c. Throwing in open place d. Land-in-fill
e. Selling the bags f. Any other (please specify)----
PRICE
24. How much does the price influence your purchase decision of packet milk?
a. Very high influence b. High influence c. A little influence d. Very little

influence e. No influence
25. How much you are satisfied with the price of packet milk?
a. Extremely satisfied b. Very much satisfied c. Moderately satisfied

d. Poorly satisfied e. Not satisfied
PROMOTION
26. Extent of promotional factors influence in purchase decision?
S.No Promotional factors Very high High A Little Very little No

influence influence influence influence influence
1 Advertisement
2 Brand reputation
3 Free gift
4 Price discount
5 Exchange offer
6 Recommentation of
retailer
27. Where do you come across most of the advertisements concerning packet milk?
a. Radio b. Television c. Magazine and Newspaper d. Hoardings on

roadside e. Handbills f. Any other (please specify)-----
28. How much, the advertisement of your brand of packet milk disclose relevant and
true facts?
a. Very much relevant b. Much relevant c. Less relevant d. Very less

relevant
PHYSICAL DISTRIBUTION
29. Source of milk supply (Tick any one)?

a. Door Delivery b. Milk Shops
c. General Stores d. Others (Please Specify)

30. Express your opinion about the retail system of packet milk in your locality?
S.No Retail system function Excellent Very Good Poor Very

good Poor
Convenient time of
1
supply
Immediately available / no
2
waiting time
3 Proximity of house
4 Home delivery
5 Supply of packet milk
Convenient quantity
6
availability
7 Reliability of seller
8 Convenient location of retail

outlet
9 Customer relationship
UHT – PACKET MILK
Commercial sterilization process is referred as ultra-high temperature(UHT)

processing. The shelf-life is determined by the filling process and type of packaging.
An aseptically packaged UHT- processed milk can be stored for six or more months
without refrigeration, and it will maintain their nutritional integrity.
31. Are you aware of the availability of UHT milk?

a. Yes b. No
32. How much of preference will you give to a packet milk with the following
features?
S.No Product Features Very high High Less Too less
Importance Importance Importance Importance
1 Ready-to-use nature
2 Shelf life of six months
3 Eco-friendly packaging
No use of preservatives
4
(Natural milk)
No need of refrigeration
5
facility
33. How much, you are interested to purchase a packet milk with the above said
features?
a. Highly interested b. Interested c. Less interested d. Very less
interested e .Not interested
34. What could be the reason for purchase of UHT-packet milk?
[Rank on a scale of 1-7; 1-Highest; 7-Lowest]
Reason for Purchase Rank
Don‟t need to get up in the early morning.
No need of refrigeration
Shelf-life of six months
Ready-to-use nature
Eco-friendly packaging
No use of preservatives (Natural milk)
Usage Convenience
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A STUDY ON THE LEVEL OF SATISFACTION OF CONSUMERS IN THE

PERI-URBAN AREA OF TIRUCHIRAPPALLI ON THE MARKETING MIX

THESIS SUBMITTED TO THE

UNDER THE GUIDANCE OF

POST GRADUATE AND RESEARCH DEPARTMENT OF COMMERCE

Dr. I. Francis Gnansekar,

submitted to Bharathidasan University, Tiruchirappalli is a bonafide record of the

(Dr. I. Francis Gnanasekar)

Reader and Head, Department of Commerce, St. Joseph‟s College (Autonomous),

Tiruchirappalli, for his constant encouragement, inspiring guidance and valuable

suggestions, which led to the successful completion of this work.

I am extremely thankful to the Rev. Dr. R. Rajarathinam SJ, Principal, St.

for the successful completion of this endeavor.

I am very much grateful to Dr. L.J. Charles, Department of Commerce,

valuable suggestions, as a Doctoral Committee Members.

I am indebted to a great extent to Dr. G. Stephen Vincent, M.Sc., M.Phil., Ph.D.,

Reader, Department of Statistics, St. Joseph‟s College (Autonomous),

I am very much grateful to Dr. N. Shaik Mohamed, M.Com., M.Phil., Ph.D.,

Research Department of Commerce, Jamal Mohamed College, Tiruchirappalli, for

having introduced me to Dr. I. Francis Gnanasekar in 2003.

I respectfully thank Dr. R.Krishnaraj, Professor, Department of Management

Studies, Saranathan College of Engineering, Tiruchirappalli, the greatest task in this

analysis and resultant interpretation.

I convey my sincere thanks to Women-respondents, Retailers, Distributors and

I am thankful to library authorities of Bharathidasan University, St. Joseph‟s

College (Autonomous), Madurai Kamaraj University, Madurai, Bharathiyar University,

permitted me to refer the journals, magazines and books.

to me, in my entire endeavor in this venture.

II. REVIEW OF LITERATURE 22

III. PROFILE OF THE STUDY AREA AND DAIRY

IV. ANALYSIS AND INTERPRETATION 155

V. FINDINGS, CONCLUSION AND SUGGESTIONS

IV. PAPERS PUBLICATION

TABLE NO. TITLE PAGE NO.

LEVEL OF EDUCATION OF THE RESPONDENTS

CLASSIFICATION OF THE RESPONDENTS ACCORDING

OCCUPATION OF THE RESPONDENTS

TYPE OF EMPLOYMENT OF THE RESPONDENTS

TYPE OF FAMILY OF THE RESPONDENTS

FOOD HABIT OF THE RESPONDENTS

CLASSIFICATION OF THE RESPONDENTS ACCORDING

CLASSIFICATION OF THE RESPONDENTS ACCORDING

CLASSIFICATION OF THE RESPONDENTS ACCORDING

CLASSIFICATION OF THE RESPONDENTS ON THE BASIS

CLASSIFICATION OF THE RESPONDENTS ACCORDING

DISTRIBUTION OF THE RESPONDENTS ACCORDING

CLASSIFICATION OF THE RESPONDENTS ACCORDING

CLASSIFICATION OF THE RESPONDENTS ACCORDING

CLASSIFICATION OF THE RESPONDENTS ON THE

CLASSIFICATION OF THE RESPONDENTS ON THE BASIS

CLASSIFICATION OF THE RESPONDENTS ON THE BASIS

CLASSIFICATION OF THE RESPONDENTS, ACCORDING

CLASSIFICATION OF THE RESPONDENTS ACCORDING

FACTOR ANALYSIS – OPINION ON THE BASIS OF

CLASSIFICATION OF THE RESPONDENTS, ACCORDING

OPINION OF THE RESPONDENTS, ON PRICE OF PACKET

CLASSIFICATION OF THE RESPONDENTS ON THE BASIS

KENDALL COEFFICIENT OF CONCORDANCE (W) –

CLASSIFICATION OF THE RESPONDENTS ON THE BASIS

OPINION OF THE RESPONDENTS TO VARIOUS

RESPONDENTS INTEREST TO PURCHASE UHT-PACKET

REASON FOR PURCHASE PREFERENCE OF UHT -

FACTOR ANALYSIS – OPINION ON THE BASIS OF

1. STRATIFICATION OF THE UNIVERSE 10