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Study of consumer Perception about Verka products

Submitted in partial fulfillment of the requirements for the degree of Bachelor of business administration (2009-2012) affiliated to Punjab Technical University, Jalandhar



I would like to thank General Manager Verka Milk Plant, Patiala, for providing me this wonderful opportunity to work with Patiala Distt.Cooperative Milk Producers Union Ltd. I am extremely thankful to In-charge (Marketing MR. and entire marketing division for their invaluable support and inputs in this project. I extend my sincere gratitude to various respondents and citizens of Patiala who spared their valuable time and contributed to consumer survey.



I undersigned here by declare that the summer training project report submitted to my college Gian Jyoti Institute of management and technology. In partial fulfillment for the degree of master of business administration on study of consumer Perception about Verka products is a result of my own work under continous guidance and kind co-operation of our college faculty member Ms. Mandeep mahendru. I have not submitted this training report to any other university for the award of degree.



This is Certify that Mr. GUNDEEP SINGH BBA (IVth Semester) has successfully completed her project titled Study of consumer behaviour about verka products under the guidance of Ms. Mandeep Mahendru. This is in the partial fulfillment of her MBA curriculum (2008-2010)

Dated: Ms. Mandeep Mahendru (Project guide)


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


Customers today are more informed and more demanding than ever. They know quality service when they get it and they arent afraid of taking their business elsewhere if they dont get it. Most manufacturers have taken this fact to heart because a refusal to acknowledge this reality can spell - failure rejection by the one who holds the purse strings and the key to profits. Satisfaction of customer needs, in fact, provides a rationale for the firms existence. Therefore consumer behavior lies at the heart of modern marketing and its knowledge is vital for a firms existence, growth and success. An understanding of the motives underlying the consumer behavior helps a firm to seek better and more effective ways to satisfy consumers. Consumer behavior, however, is a complex system where there is an interaction of various social, economic and psychological factors. All these factors affect the purchase decision of the buyer and his perception about different products. Buying decision process incorporates all the activities that individuals go through in their role as consumers. It starts right from the time when there is a state of deprivation (need arousal) and goes through a point when a means of need satisfaction has been obtained. It ends at a juncture when the product has been used for a sufficiently long period of time to judge the level of satisfaction (post - purchase evaluation).

Satisfaction is the key to generate repeat business. It ensures customerloyalty and determines whether a customer would come to the company again.


Chapter No. 1.


Page No. 8-37 8-14

1.1 Industry profile (Milkfed) 1.2 Objectives 1.3 Company Profile (Verka) Review of literature Research Methodology Data analysis & Interpretations Conclusion SWOT Analysis Suggestions and recommendations Bibliography Annexure

2. 3. 4. 5. 6. 7. 8. 9.

15-37 38-41 42-48 49-61 62-63 64-66 67-71 72-73 74-78



1.1 MILKFED-PUNJAB (Introduction)

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

1.2 Objectives of MILKFED

1. To provide remunerative prices to milk producers by value addition and marketing of produce. 2. To provide technical inputs for enhancement of milk production on the other hand. 3. To carry out activities for promoting production, procurement processing and marketing of milk and milk products for economic development of the farming community; 4. To purchase and/or erect buildings, plants, machinery and other ancillary equipment to carry out business; 5. To study problems of mutual interest related to production, procurement and marketing of dairy and allied products; 6. To establish research and quality control laboratories; 7. To make necessary arrangements for transfer of milk allied milk products and commodities; 8. To market its products under its own trade name/brand name with its Member Unions trade mark/brand; 9. To promote the organization of primary societies and assist members in organization of the Primary Societies; and



On the basis of quality with efficient administration, MILKFED has not only established new mile stone of providing services to Dairy farmers but scaled new heights in delighting esteemed customers also.

1. MILKFED is providing technical input services like animal healthcare, supply of quality cattlefeed, fodder seeds etc. at the door steps of the dairy farmers under its Productivity Enhancement Programme. 2. For producing quality technical services MILKFED has established its own two cattle feed plants having capacity of three hundred metric ton per day. 3. During the last 3 years, 8 Milk Plants and 2 Cattle Feed Factories of MILKFED, Punjab were accedited with ISO9002 and IS-15000 (HACCP) Certification. 4. In view of today's interest of consumers in getting quality and safe products, MILKFED is manufacturing quality milk and milk products as per International Standards and also exploring the possibility of manufacturing milk products of consumer's choice. 5. MILKFED has launched its own interactive Website on Internet for its prospective customers which can be accessed by clicking http//www.milkfed.nic.in 6. MILKFED introduced liquid milk in new design packing with Mnemonic Symbol of Co-operative Milk in all the District Milk Unions.


Critical analysis of Milk fed

Corporate Focus
MILKFED is serving the cause of Milk producers of the state in collaboration with National Dairy Development Board by increasing the number of functional MPCSs from 4642 in 1990-91 to 6248 in 2000-01 and their membership rose by 90000 from 2.63lac in 1991 to 3.53lac during the same period. This has resulted in increase of milk procurement from 1438lac in 1991 to 3371lac liter in 2000-01. However, rehabilitation plan of sick Milk unions has yet to reach the implementation stage.

Strength/Care Competency/Opportunities:
MILKFED earned a net profit of Rs.3.19crore in 2000-01. Its core competency in marketing of Milk &Milk products by creating a marketing infrastructure is serving a social purpose by providing income to land-less laborers small and marginal farmers scheduled caste families and households headed by women having just one or two cattle only as nearly 90% of the member of Milk producers Cooperative Societies belong to these categories


(Annexure 20) Operation Flood programmed of dairy development is implemented by it in the state.

MILK VISION 2004 to stabilize the gap between Milk procured during peak seasons and lean season has been drawn by MILKFED to optimally utilize Milk plants for reducing their losses. Moreover, Model diary farms in collaboration with Technology information and Assessment Council (TIFAC) are being developed by it at a capital outlay of Rs.2.00crore.

Export Ropar and Ludhiana Milk unions the remaining 9 unions are incurring losses. Their combined accumulated looses are Rs.76.33crore as on 31-03-2001. This way, cooperative Milk unions structure of MILKFED is losing its commercial viability over the last two years by restricting itself to the sale of Milk and Milk products only and not exploiting its well developed procurement sale and supply distribution channels to market fresh vegetables and fruits along with processing and procurement of oil seeds. To make these plants viable and socially sustainable the introduction of latest technology in Milk; plants and full exploitation of its marketing strength in procurement and marketing network is the need of the hour. MILKFED is a vital mechanism for more them one reason in the Punjab context. First and foremost it is engaged in raising the viability of Agriculture of the small/marginal farmers. Landless labors, families with no male earners and the scheduled castes. It is therefore of utmost importance that the

Government of Punjab make its due contribution for the purpose of leveraging finances or the National Dairy Development Board and other cooperative institutions. Infect, If necessary Government should get District Milk Union Cooperative so that hitherto slow extension is intensified and the

maximum potential for cost reduction is achieved. The other important reason for Government to support this activity even by subsides to induce a shift out of the paddy- wheat rotation by encouraging the cultivation of better seeds vegetable, Fruits and eventually oil seeds and meat products.






Verka Milk Plant. Verka Milk Plant Sirhind road , patiala


Milk. Ghee, Pasteurized milk, Milk powder, Curd, Cheese, Milk Cake, Sweet flavored milk.


24 hours (3 shifts).



163. 1 Lakh Ltrs per day.


The elegant building situated on sirhind road just before we enter Patiala is that of Milk Plant owned by The Patiala District Co-operative Milk Producers Union Ltd. Its foundation stone was laid by Indias Home Minister Mrs. Uma Shanker Dixit in 1973. It started its production in 1979. Its name was registered as The Patiala Distt. Co-operative Milk Producers Union Ltd. Patiala. It has been registered under Punjab Cooperative Societies Act 1961 on 24 March 1973. This union started its milk procurement from March 1974. The union is working under the laws of act. In the beginning 13 societies became its members. But this union started as milk procurement from 1974. Initially its office was situated on the upper side of co-operative bank of Barnala. At that time Milk Plant Patiala was not existing. Initially the societies of Barnala circle were started, after this it was expanded and centers were approved at Dhuri and Malerkotla. At that time this union collects milk from other societies and to Horlicks. Before it, except Horlicks


there was no major buyer of milk and Horlicks was a private concern giving low rates. After that the union was strengthened and milk producers got benefited by this union as they were getting reasonable rates for their from. A project report of Milk Plant Patiala was made at that time with shares from

different societies were to be collected and it includes Rs 100 share money and Rs 5 admission fees, 15 lack Rs were to be collected and in this manner and the share of government was fixed at Rs 40 lack.For the smooth running of the plant, the union had taken loan of worth Rs 62 lack from Co-operative Development Corporation. By this loan a milk plant was established. It started milk of 45000 liters per day in December 1979 further it was expanded with the help of National Diary Development Board at ANAND under the Operation Flood programmed. After few years a drier was installed with a capacity of 10 tones. For the purchase of this machinery 70% of loan was taken from NDDB and 30% loan from government in the form of subsidy. The total investment in the plant was 6.5 crores.


In the milk plant there are hard receiving departments: Production and Engineering. The location of the stores department is carefully planned out and it is housed in a position which is very near to production department so that transportation charges are minimum. It is also easily accessible to all


other departments like engineering, boiling, refrigeration, powder plant and workshop. The layouts of plants store is properly planned. There are shelves, racks, admirals and handling devices for keeping the material and equipments properly. The store is divided into racks which are further sub-

divided into small spaces allocated. Special attention is paid to storage of material which is liable to leakage or evaporation and deterioration.

Routes are selected for the delivery of milk through these societies. Shortest milk routes are preferable so that milk reach to plant in same condition, otherwise milk can become sour or curd. The societies which are far away from milk plant, the four milk chilling centers are established for them. Societies send milk directly to milk plant or through chilling centers. These chilling centers chill milk at 4 degree Celsius which keeps the milk in good condition for 24 hours. After chilling the milk these centers send milk to the milk plant.



When a society is fully formed for the collection of milk it is registered under the registration act of societies. Its members are also registered and given members pass books and share certificates. A copy of rules and regulations are also given to them. Then the actual milk collection starts.


Milk Plant Patiala procures milk in three seasons. First comes the lean season i.e. the months of May. June, July and August. In this season milk is available in very low quantity i.e. 25000 liters per day. The second season is mid-season i.e. the months of March, April, September and October. In this season the procurement of milk is about 50000 liters per day. The most awaiting season is flush season i.e. the months of November, December, January and February. In this season the procurement of milk is maximum i.e. 65000 liters.


Year saver age milk procurement per day (in liters) total milk handling. 2001- 85000 liters per/day 2002- 80000 liters per/day


2003- 70000 liters per/day 2004- 75000 liters per/day 2005- 70000 liters per/day 2006-65000 liters per/day 2007- 60000 liters per/day 2008- 62000 liters per day


About 300 milk producing societies come under Milk Plant Patiala which is operating in the whole Patiala district. All these are divided into six main centers which are as under:


140 50 30 30 30 20


NAME OF THE SOCIETYMILK PER DAY (in liters) Local Patiala 40000 Sehna 8000 Mehal Kalan 5000 Chanhaliwala 7000


Production is the foundation on which every organization is built. Production is an internal act of producing something in an organized manner. It is the fabrication of a physical object through the use of men,

material and equipment. Thus the basis of production is the transformation of inputs into goods and services. In milk plant Sangrur two different plants are established for the production of Ghee and SMP. These are called: 1. 2. Powder Plant. Production plant.

In powder plant Skimmed Milk Powder is prepared from spreta milk which comes from production department. In production plant Ghee is prepared from cream after its separation from milk. Here pasteurized milk is also prepared. Sometimes milk cake is also prepared according to its requirement. In addition to it there are arrangements for filling sweet milk bottles. Powder and Ghee are made only in flush season when milk is

available in large quantity. In lean season production fails because of nonavailability of milk. In months of May, June, August is done; sometimes glucose is made here on contract basis.


Quality control includes techniques and systems for the achievement of the required quality of the raw material as well as final products. Most often milk vendors adulterate the milk in such a way that normally consumers are to be fooled. Consumers remain obvious to the various ways and means adopted by milk vendors to adulterate milk. Here are some eye openers: 1. Urea, caustic soda and salt are added to thicken the milk.


Milk powder is also used for thickening and usually the powder used

is sub-standard. 3. 4. Synthetic milk is added to pure milk to increase the quantity. Sometimes pure milk is separated, the cream is removed and the

skimmed milk powder is added to it.



Accounting is the art of recording, classifying and summarizing in a significant manner, and in terms of money transactions and events which are in part at least of financial character and interpreting the results thereof. In milk plant Patiala this section performs the functions of maintaining the accounts of stores material and milk products by union and to make payments at right time. Like this to maintain the accounts of milk and milk products sold by the union and to receive the payment for goods sold to consumers, concerned sections and branches. The bills are prepared by accounts branch according to 10 days milk purchase from producers and societies. It is the duty of this section to maintain the accounts according to rules and regulations mentioned by Registrar Co-operative Department and to follow the restrictions and suggestions imposed by auditor.

Milkfed Punjab is serving nationwide consumers through its network of regional offices and strong distribution channels. Milkfed markers a wide variety of products liquid milk, skimmed milk powder and many more.



Milk Procurement: Milk Plant procured about 55,000 Lt. of milk per day through 19 Milk routes in the Flush Season. Animal Health Care & Other Technical Inputs: In addition to Organizing the remunerative Milk market system Through milk producers cooperative societies, Milk Plant is also providing regular health coverage by running 2 vet nary routes and 55 Artificial Insemination Service Stations at Society level. Genetic Improvement of Milch Animals Under this, lay inseminators are trained who are in-turn, doing Artificial Insemination at the door steps of Dairy Farmers.

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


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

Quality Assurance Program:

Quality Assurance Program (QAP) which is a part and parcel of Dairy Plant Improvement Program (DPIP) was taken up in Ludhiana Milk Union with the Technical guidance from NDDB. The main objective of the program is to improve efficiency of Plants coupled with loss management to bring down the cost of production, improve the quality of milk and milk products manufactured to ameliorate the general hygienic and house keeping standards and above all to enhance the profitability and financial viability of the Milk Plants to enable milk producers to get better price for their produce.


The main products which are manufactured by the milk plant Patiala are as under: 1. 2. Ghee. Pasteurized Milk.

3. 4. 5. 6. 7.

Milk Powder. Sweetened Flavoured Milk (PIO). Milk Cake. Cheese. Curd.


According to Prof. Phillip KotlerMarketing is the human activity directed as satisfying need and wants through the exchange process. Marketing is the process through which producers and consumers of various goods are brought together in an exchange relationship and the transfer of ownership takes place. Marketing process starts even before the goods go

into production. It does not end with sale but continues till the satisfaction of consumer is obtained. To carry out selling functions, it is important to have a qualified and expressed sales force with leader who can plan, organize, direct and control the selling job objectivity. The salesman is an extremely important link in


the claim of distribution. It is sometimes said that salesmanship is the other name of persuasion.

MARKETING STRATEGIES Section of Milk Booths/Agencies Security Money Refundable Agency Rs. 5000 Full time booths Rs. 10000 Part time booths Rs. 3000 Institutions 45 days advance payment


For domestic market following measures are taken up by marketing personnel: A. B. C. Dealers meeting is called once in every six months. The plant has own distribution network for the sale of products. Milk products are marketed to bring up country markets through out

India on consignment basis.



For Export following measures are taken into consideration: A. B. Requirement is given by customers in the letter of credit. Quality should be mentioned.


The domestic marketing activities are performed on the basis of Demand and Supply.

Demand for milk and milk products are received in two ways: Through TelephoneAny demand or change in demand is received between 9:30 am and 2:00 pm. Through SupplyMilk booths collect demand according to milk supplied to the agencies. About 70% of milk is distributed in the morning and remaining 30% is distributed in the evening.



Since agency is required to deposit one day advance payment separately for morning and evening, if any cash balance remains with the union that is admitted in the meant supply payment. For institutions 45 days of advance payment against their demand is collected union.


If milk is found leaked. It is taken back from dealers only at the time of delivery. One entire tray is provided for replacement of leakage of every truck or other vehicle through which milk is supplied to the dealers.

Marketing is a comprehensive term and it includes all resources and a set of activities necessary to direct and facilitate the flow of goods and services from producers to consumers in the process of distribution. Marketing is the process of planning and executing the conception, pricing, promotion and


distribution of ideas, goods and services to exchange that satisfy individual and organizational objectives.


Head Office collects this information from all the plants and scrutinizes the information that which plant has large stock of products and who is lacking in it. Then it gives orders to plant which has large stock to supply products

to other plants so that stock can be absorbed quickly. The prices of all the products are determined by the H.O. and their retail price through out India is same H.O. charges 3% commission on sales made by milk plant, Patiala. For the local sale of milk and milk products, a milk bar is opened outside the main gate of milk plant, Patiala and its average sales are Rs 5 lakh per day. Some milk products like liquid milk, Cheese, Milk cake, S.F.M., Ice-cream etc. are sold through local dealers in the district.


The advertisement and sales promotion of every product is necessary. Without this, nobody comes to know about the product. Every organization


whether it is small, medium or big has to do some type of advertisement. Verka milk plant has also adopted some policies for the sale of its products. It has its own Vans, Trucks, and Jeeps etc. for selling its products. There are also some benefits which are being provided to the dealers. There is a facility of free training of testing milk to the societies so as to make more customers. With the adoption of such policies sales have increased in Dhuri,Sunam, and Barnala as well as in Patiala. For doing advertisement the shops of retailers have been painted showing various Verka products and various types of banners are also given to them which are to be displayed. Advertisement of Verka products is also shown on Local Cable Networks of

Chandigarh,Mohali,Patiala and many more cities. Pamphlets are also being distributed door to door.


Certain guidelines and motto are being told to the salesmen for meeting the customers desires and wants. Various guidelines are as follows: 1. It is said "sell yourself before you sell the product". The above

saying is measuring to create ones own confidence in the minds of customers so as to ensure sales.



Your sincerity and capability in convincing is your performance for

success. 3. 4. 5. 6. Over convincing never pays single facts convince better. Always remember that customer is more intelligent than you. Dont indulge in giving guarantees if wear and tear. You should be pre-determined in your mind of items, size to be sold

to the customers after stock. 7. 8. Your expertise is your success. Dont display all of your varieties because customers generally have

the habit of asking more.









Milkfed has formulated company specifications for its milk & milk products


to provide standard and quality of products to consumers.

Milk Ghee Curd, Kheer...

Cheese Icecream & Sweets Butter

SFM(Pio) Milk Powder Rasella

Now Verka has arrived on the sheer strength of its quality, freshness and purity and of course its home made taste and its products being of most affordable prices. To people today, Verka is part of their daily life. 1.

Liquid Milk Pasteurized Pouch Packed Milk:-

It is pouch packed milk. It may be used as such or for milk based preparations. It shall be kept under refrigerated conditions. It is packed in

half ltr. Pouch. Its length of shelf life is 48 hours under refrigerated conditions. It is sold in arid around Chandigarh,Mohali,kharar and patiala areas. Special distribution control is needed, under refrigerated condition if


transported to very long distance. Verka Milk Plant is preparing three types of milk pouch :-

Standardized Milk 2.

Toned Milk

Double Toned Milk

Milk Powder:-

Dried Milk or Milk Powder is product obtained by the removal of water from milk by heat or other suitable means to produce a solid containing 5% or less moisture. Whole milk, defatted or skim" milk may be used for drying. It comes in packing of 200 gms, 500 gms. etc. It can be stored for 1 year before use. 3.


Ghee may be defined as clarified butter fat prepared chiefly from cow or buffalo milk. The product can be used on roti/pranthas or can be used as

cooking other material for food. It is preserved at ambient temperature for one year. It is packed on 500 gms, 2 Kgs., 5 Kgs. & 15 Kgs. bulk pack in tin.


It is sold anywhere in Punjab and abroad also. No special distribution control is needed. 4.

Butter: - Butter may be defined as a fat concentrate which is

obtaining by churning cream, gathering the fat into a compact mass and then working it. The product obtained from cow and buffalo milk or a combination thereof or from cream or curd obtained from cow or buffalo milk or a combination thereof, with or without the addition of common salt and colouring matter. It can be kept under refrigeration for three months. This comes in packs of 10 gms. 100 gms. And 500 gms. 5.


Lassi, also called chhas refers to desi butter milk which is by product obtained when churning curd led whole milk with curd indigenous devices for the production of desi butter.

Verka Lassi is very popular, specially in Punjab and it is also liked by the people of other states. It comes in the 200 ml. tetra pack.



It is known as Sweetened flavoured milk or bottle milk. The product used in the form of drinking sweet milk. It is preserved at ambient temperature. It is packed in 200 ml. bottle, 200 ml. tetra packs. The length of shelf life of product can be held far three months under ambient temperature. It is sold in and around Punjab and upcountry market mainly Delhi.


Ice Cream:-

Ice Cream may be defined as a frozen dairy product made suitable blending and processing of cream and other milk products, together with sugar and flavour, with or without colour and with the incorporation of air during the freezing process. There are mainly three types of Verka Kulfies i.e. Malai Kulfi, Choco bar and Mango bar. Malai Kulfi made with milk, malai and Crushed nuts. Choco bar contained chocolate and Mango bar kulfi contain mango flavour.




Paneer refers to the small sized soft cheese. The product can be consumed as such or can be fried and consumed. It can also be used as an ingredient for making Indian Sweets and paneer based dishes. It is preserved under refrigerated condition for 20 days from the date of packing. The product is packed in poly film bags. The pack size is 200 gms. For consumer pack and 5 Kg. Capacity in bulk pack as agreed by contracted buyer.



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




Raseela is a very popular product of Verka which was launched in 1995. It comes in two flavours - i) Mango Raseela and ii) Pine apple Raseela. Mango Raseela is prepared from mango pulp and Pineapple Raseela from pineapple pulp. These are coming in 200 ml. tetra pack.




Dr. Arvind Kumar Yadav and Mr. Suman Yadav (2008) Journal of IPM Meerut The research on the on the topic CONSUMER SATISFACTION IN SBI the objective of the study is to made analyse with regard to the assessment of services provided by SBI to the customers. The research methodology used by researcher includes collection of primary and secondary data. Primary data has been collected from the existing customers of SBI. Data collected has been analyzed by researcher through tables, graphs and pie charts. By the researcher found that the expectations of customers of SBI are met to a limited extent.

Dr. N. Kathirvel and Dr. N Chandersekaran (2008) Indian journal of marketing The researcher research on the topic CONSUMER BEHAVIOUR AND BRAND PERFORMANCE TOWARDS THE ONIDA T.V the objective of the research was to study consumer satisfaction and brand loyalty of the respondents toward the Onida T.V. For this researcher collected primary and secondary data from the sources. The research methodology adopted by the


researcher includes chi-square test, percentage, arithmetic mean, correlation, and variance. The researcher founded that favorable appreciation response was received from the customers. Study also certifies that consumer behavior is unpredictable one in any kind of the market.

J.V Rangeswara Reddy (2009) Indian journal of marketing The researcher research on the topic CUSTOMER SATISFACTION OF NOKIA MOBILE HANDSET USERS the objective of the research is to study the satisfaction level of the customers, awareness of customer about the products and to predict the consumer behavior. For this researcher collected primary data and analyse it with the help of tables, charts, bar graphs and pie charts. The researcher found that the product awareness about the nokia product is high as compared to others. It is also concluded that the consumer is influenced to buy nokia due to its brand image and also the satisfaction level of customers of nokia is high as compared to the others handsets in market.

Steen amp (1991) studied the Consumers' variety seeking tendency (intrinsic desire for variety) is recognized as an important characteristic that influences consumers' electronic choice behaviour. Empirical studies in economics and marketing have not specifically focused on this consumer characteristic, but instead have approached the issue from the overt


behaviour side. Given the great many factors that may underlie variation in behaviour, intrinsic desire for variety cannot be validly derived directly from observed behaviour. Instead, a measure specifically tapping this consumer characteristic is required. In this paper a scale (VARSEEK) for measuring consumers' variety seeking tendency with respect to foods is developed. The construct validity of this VARSEEK-scale is investigated extensively and managerial implications are discussed

H.k mukharje (1995) studied that two-equation bivariate probit model was formulated to analyze simultaneously consumers' preferences and attitudes toward organically grown produce (OGP). Results suggest that consumers who are nutritionally conscious, concerned about the use of pesticides, and wanting produce tested for freedom from residues would have a higher Propensity to prefer OGP. Among the potential buyers, consumers who are white, better-educated, and have large families are more likely than others to tolerate sensory defects. The study suggests that testing and certification, sensory qualities, and competitive pricing are the most important factors that would enhance the marketing potential of OGP






The essence of research conducted by me is to analyze the present market position of Verka products among its competitors and the problems which are being faced by customers, wholesalers, retailers. The eventual objective is to suggest some recommendations to the company so as to enable them to increase their market share. One in analyzing my samples follows no conventional method. The total analysis is based on the internees from the question put on before my sample size. A research of this cant be done all once throughout large area in a limited time so Patiala, Sunam have been selected for research.


According to Prof. Phillip Kotler,Marketing research is the systematic, design, collection, analysis and reporting of the data and finding relevant to specific marketing situation facing the company. Marketing is restless, changing dynamic field. Since 1920 many important and dramatic changes have taken place in marketing, thousands of new products including those of entries of new industries such as automobiles,


electronics and computer, textile, walk product etc. have appeared in the market. The market orientations have changed from production to market.


The first step of marketing research is defining the problems and research objectives. Following are the problems and objectives which are to be defined:

# # #

To ascertain the frequency of using Verka product. To ascertain rescannable price of Verka products. To ascertain the best product of Verka brand. .


# # #

why people prefer Verka products. To know about sales pattern. To know the competition level faced by Verka products in the To know the opinion of people about Verka products regarding


its taste, packing etc.


The second step of marketing research process calls for developing the most efficient plan for gathering the needed information. While designing a research plan we have to take decisions regarding data sources, search approached, search instruments, sampling etc. There are two plan contact methods which are as follows: A. DATA SOURCES

There are two types of data sources: 1. Primary Data:-

Personal interviews are conducted which enable collection of oral verbal response. This is fact to face contracted with structured or sometimes even unstructured patterns. This helps in obtaining indent information.



Secondary Data:-

Secondary data can be obtained from different Milkfed magazines and annual reports, financial documents referred.

Survey Method :- Survey are best suited for descriptive research companies which undertake surveys to learn about peoples knowledge, beliefs,

preferences, satisfaction etc. to measure these magnitude in the general population. While observation and tours are best suited for exploratory research which is not the case of our study.



Questionnaire A questionnaire is prepared and used to collect the information. The majority of questions are close ended. Questionnaire is distributed to people to know about their preferences, tastes, demands etc. This is one of the easiest methods of collecting information.



After deciding on the research approach and instrument, we must design a sampling plan. This plan calls for three decisions:


Sampling Unit:-

Here we define what is to be surveyed i.e. the target population that will be sampled. In our case the general public in cities and towns come under the sampling unit. 2. Sample Size:Large samples give more reliable results. In our study 100 customers were surveyed in Patiala, Sunam. 3. Sampling Procedure:Area sampling is using because it is not practically possible to visit all places of India therefore Patiala, Sunam chosen for survey.



In this decision is taken that how the object should be contacted i.e. whether by mail questionnaire, telephone, interviews. In our research personal interview is the most convenient and reliable method.




The data collection phase of the marketing research is the most expensive and most error prone process. There can be error as some respondent can give biased or dishonest answer for the collection of the information. The researchers personally go to customers to collect the reliable data. Here all knowledge of the researcher about that field comes to test the ingenuity of the research. Here I got the experience of working professionally and independently on the road which gives some taste of practical marketing. I also got a lot of exposure about the market. The present study undertaken is descriptive in nature and in this study questioning people with regular expertise in that are being used.

Limitations of research:1) Due to sangrur being a large city, it was not possible to interact with people from all over the city or even district.

2) Few consumers were reluctant to fill the questionnaire as they perceived us as sale men and also shown reluctance in giving their contact numbers. 3) Time period for the project execution was less as ample time could not be given to each customer and vice versa as they have to fulfill their other obligations also.


4) Interaction with dealers was also difficulty as they were busy with their customers most of the time. 5) There is no measure to check out whether the information provided by the consumers is correct or not.




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




M ilkm an 41%

Packed 34%

Dairy 25%



M ilkman

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


How you ever used Verka Products?

Answer Yes No

Percentage 60 40



40% 60%

Yes No

Interpretation: According to 100 respondents 60% people says that they use to verka product and 40% people do not use verka product..


From the following which Verka products you have used?

Products Milk Ice-Cream Lassi All & Others

Percentage 55 25 5 15

Percentage 60 50 40 30 20 10 0 Milk IceCream Lassi All & Others



Interpretation: According to 100 respondents 55% people says that they use to use packed milk, 25% says they use ice cream and 5% says they use verka lassi and rest are 15% used other product of verka.


Since when you are using Verka milk Product? Percentage 57 34 9

Percentage 9% 1 34% 57% 1-5 More than 5

Time in Years 1 1-5 More than 5

Interpretation: According to 100 respondents 57% people says that they are using the milk product last one year, 34% from 1 to 5 year and 9%people using the milk more than 5 year..

Q5: Do you think whether the price is reasonable for Verka milk products?


Answer Yes No

Percentage 45 55


45% 55%

Yes No

Interpretation: According to 100 respondents 45% people says that the price of verka milk product is reasonable and remaining 55% people says that the price is not reasonable.

6: What do you think about the packing of the different Verka products? Answer Good Ok Satisfactory Percentage 68 8 9


Poor Very poor

15 0

Percentage 80 60 40 20 0
er ag e y tis fa ct or G oo Po or d



Interpretation: According to 100 respondents 68% people says that the packing of verka products are good, 8% people says that packing is ok, 9% says satisfactory and remaining 15% says that the packing of verka products are poor so according to this analysis packing is good.


In your opinion taste of the Verka products are?

Answer Good Average Satisfactory Poor Very poor


Percentage 64 8 18 10 0


Percentage 80 60 40 20 0
er ag e ry G oo d tis fa ct o Po or



Interpretation: According to 100 respondents 64% people says that the taste of verka product is good, 8% says that its taste is average, 18% people satisfactory with this and 10% people says that the taste is poor. 8: What is your opinion about the quality of the various Verka


Answer Excellent Good Satisfactory Poor Very poor


Percentage 13 51 26 10 0


Percentage 60 40 Percentage 20 0 Excellent Good Satisfy Poor

Interpretation: According to 100 respondents 13% people says that the quality of verka products are excellent, 51% people says that the quality is good, 26% people satisfy with this and remaining 10% people says that it is poor.

Likert scale
For comparing verka products with Today & Amul with respect to likert type scale has been used.

Services Excellent Good

37 of verka (5) 36 35

Average Poor (3) 9 12 26 (2) 15 10 10

Very poor (1) 0 0 0

Total average 429 408 367


(4) 8 8 51

weighted % 35.63 33.88 30.48

rela tive %

Packing 68 34 Taste 64 33 quality 13

32 31 30 29 28 27 packing

services of verka prefered by custom as com er pared to Today m & Am ilk ul




s ervic provided by verk es a

Note:- Responses of excellent were assigned weight of (5) good responses were assigned weight of (4) responses of average (3) and responses of poor and very poor were assigned weight of (2) and (1) respectively. And respective responses were multiplies with their corresponding weight to get total weighted average and then their relative percentage was calculated.

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

Yes No

63 37


No 37%

Yes 63%



Interpretation: According to 100 respondents 63% people says that they are aware about that full cream milk is the best for growing children & sports person as it contain 6.0% of facts and rest 37% says that they are not aware that full cream milk is the best for growing children & sports person as it contain 6.0% of facts. 10: Have you ever seen the advertisement of the Verka Products? Percentage 24 76

Answer Yes No


24% Yes No 76%


Interpretation: According to 100 respondents 76% people says that they have not seen the verka advertisement and 24% says that they have seen the advertisement. As clear from analysis mostly people have not seen the verka advertisement. 11: When you like to buy verka products? Percentage 27 18 35 20

Answer During Traveling For Break As a Health Tonic For Enjoy

Percentage 40 30 20 10 0 During Traveling For Enjoy As a Health Tonic For Break


Interpretation: According to 100 respondents 27% people says that they like to buy verka products during traveling, 18% people buy during break time, 35% people buy as a health tonic and remaining 20% buy verka products only for enjoy.





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







1. 2. 3. 4.

Brand Loyalty among the rural people for Verka products. Good brand image of Verka products in the minds of rural people. Faith on Verka products by the rural farmers. Rural people satisfaction with quality, price, quantity and availability

is also strengthen the dairy business.



Lack of proper advertisements by the plant, such as posters, glow

signs, etc. 2. 3. Lack of proper distribution system in rural areas. Lack of proper marketing network in rural areas as like in urban areas.



Very high rates of products such as bottle milk for Rs.15 for 200 ml.



Greatly improved expert potential for milk products of western as well

as traditional types. 2. 3. 4. Proper utilisation of available resources to decrease the per unit cost. By product utilisation for import substitution. Growing demand for milk and milk products.


1. 2. 3.

Introduction of foreign products in Indian market. Poor quality of milk. The liberalisation of Dairy Industry is likely to be exploited by multi

-nationals. They will be interested in manufacturing milk products which yield high profits. It will create milk shortage in the country adversely affecting the consumers.


Export of quality feed under the liberalisation policy.





RECOMMENDATIONS REGARDING PRODUCT:Verka has presently four variants of liquid milk in market but still it is not able to segment market according to consumers preferences. The only differentiation in these variants is the color of the packs. Variants name should be printed on the packs in such a way that they are clearly visible to the consumers. Different punch lines should be designed for different variants. This will help in formulating advertisement strategy and reaching the targeted customers. For example, verka smart double toned milk is offered recommended by doctors to heart patients. It can be targeted in health conscious people. Plain lassi which comes in one litre pack only should be available in smaller packs like 250ml or 500ml. Kheer is available in 125gm pack, which is quite small and is recommended to be packed in larger pack like family size packs so that it can be consumed conveniently as a sweet dish by whole family.



Milk consumer values from delivery and a lot of distributors are already providing this facility. Milk plant should think of giving extra commission to its dealers for ensuring such facilities. This scheme can be implemented in

few areas and if there is an increase in consumption of milk then it can be extended to all other areas catered by milk plant. There is need to communicate regularly and taking feedback from agents. Monthly meetings will help in improving the relation with dealers. The declaration of the prices like Fastest Growing Dealer OR Highest selling Dealer can be announced bi monthly or bi annually to motivate dealers to increase their sales. Shortage of products is seen in Sunam so distribution network should be improved for the same.


The following steps can be taken in the field of promotion: 1) Using electronic and print media for information dissemination: In recent days, there has been lots of new highlighting adulteration of food products that is making people skeptical about packed food products. Special


programs highlighting supply chain of milk producers co-operatives can be screened and telecasted on TV from time to time .news highlighting achievement of milk plant can also be published in news papers which will help in creating favorable image for verka products.

2) Inviting people for plant visits on weekends: Plant can be opened to general public for visit on Saturday and Sunday for a limited time interval in order to win their trust on verka products. This can be done through collaborating with Radio Fm channels where winners can get free visits and some limited period coupons. 3) Toll free telephone for customer feedback: Presently verka products have a telephone number printed on their packs but this is not toll free. A toll free number should be there and printed in such a color or font that is easily differentiable from the rest of the text on the pack.

Recommendations regarding pricing:

Following suggestions can be considered for improving pricing strategies of companies: 1) Introduction of coupon system; Milk is the commodity that is daily bought and consumed within households. It is cumbersome for consumers to make payment daily as change for currency is not available at times. There are offered candies in


return for change which many of the consumers do not like. This problem can be solved by introducing milk coupon which can be bought from agencies. Coupon system has been successfully implemented by several individual distributors in their respective areas. It is needed to be implemented in entire city.

2) Pricing in round figures: Milk sellers often do not have fifty paise coin or change with them so they often sell milk at higher prices .this problem can be curbed by keeping the prices in whole number multiple of rupee. People buying milk using coupons can be this discount of fifty paise. This will encourage more people to for milk coupon.




Brochure/booklet/magazine Verka milk Plant, Patiala Kothari C R, Research methodology Second Revised Edition PublishersNew Age International (P) Ltd., Year- 2008 Dr. Arvind Kumar Yadav and Mr Suman Yadav (2008) , Journal of IPM Meerut Dr. N. Kathirvel and Dr. N Chandersekaran ( 2008) , Indian journal of marketing. J.V Rangeswara Reddy (2009) , Indian journal of marketing.

Websites:www.milkfed.nic.in www.milkfed.jp www.milkfed.org




Dear Sir/Madam I am a student of, RIMT-IMCT college , MANDI GOBINDGHAR conducting a marketing survey on study on consumer behaviour about verka products I. I request you to fill this questionnaire & I assure that this data will be used only for study purpose & it will be kept confidential.

Name: Address:

. ....

Telephone No:

1. Kind/source of milk purchased?


Packed Dairy Milkman

2. How you ever used verka product? Yes No 3. From the following which verka products you have used? Milk Ice cream Lassi All & others 4. since when you are using verka milk products? One year 1-5 years


More than 5 years 5. Do you think whether the price is reasonable for veka milk products? Yes No

6. What do you think about the packing of different verka products? Good Ok Satisfactory Poor 7. In your opinion taste of verka products are? Good Average Satisfactory Poor 8. What is your opinion about the quality of the various verka products?


Excellent Good Satisfy Poor

9. Are you aware that full cream milk is best for growing children & sports persons as it contains 6.0% of fats? Yes No 10. Have you ever seen the advertisement of verka products? Yes No 11. When you like to buy verka products? During traveling For break As a health tonic


For enjoy