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Chapter - I Introduction

Introduction of the Topic


Consumer Behaviour is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, socio-psychology, anthropology and economics. It attempts to understand the buyer decision processes/buyer decision making process, both individually and in groups. It studies characteristics of individual consumers peoples wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups and society in general. Belch and Belch define consumer behaviour as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating and disposing of products and services so as to satisfy their needs and desires.

Basic model of Consumer decision making The basic model of consumer decision making also referred to as EKB model (Engel, Kollat & Blackwell, 1969)

Stage
Problem Recognition Information Search Information Evaluation Decision Post Purchase Evaluation

Brief Description The consumer perceives a need and becomes Motivation motivated to solve a problem. The consumer searches for information required to Perception make a purchase decision. The consumer compares various brands and Attitude products. The consumer decides, which brand to purchase The consumer evaluates their purchase decision. Formation Integration Learning

1. Problem Recognition
Problem recognition is that result, when there is a difference between ones desired state and ones actual state. Consumers are motivated to address this discrepancy and therefore they commence the buying process. Sources of problem recognition include: An item is out of stock Dissatisfaction with a current product or service Consumer needs and wants Related products/purchases Marketer induced New products

The relevant internal psychological process that is associated with problem recognition is motivation. A motive is a factor that compels action. Belch and Belch (2007) provide an explanation of motivation based on Maslows hierarchy of needs and Freuds psychoanalytic theory.

2. Information Search
Once the consumer has recognised a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an internal and an external search. Source of information include: Personal sources Commercial sources Public sources Personal experience

The relevant internal psychological process that is associated with information search is perception. Perception is defined as the process by which an individual receives, selects, organises and interprets information to create a meaningful picture of the world. The selective perception process stage Description selective exposure consumers select which promotional message they will expose themselves to. Selective attention consumers select which promotional message they will pay attention to selective comprehension consumer interpret message in line with their beliefs, attitudes, motives and experiences selective retention consumers remember message that are more meaningful or important to them. You should consider the implications of this process on the development of an effective promotional strategy. First, which sources of information are more effective for the brand and second, what type of message and media strategy will increase the like hood that consumers are exposed to our message, that they will pay attention to the message, that they will understand the message and remember our message.

3. Information Evaluation
At this time the consumer compares the brands and products that are in their evoked set. How can the marketing organisation increase the like hood that their brands are part of the consumers evoked set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organisation needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. The relevant internal psychological process that is associated with the alternative evaluation stage is attitude formation. Belch and Belch (2007) note that attitude are learned predispositions towards an object. Attitudes comprise a both cognitive and affective element that is both what you think and how you feel about something. The multi attribute attitude model explains how consumers evaluate alternatives on a range of attributes. Belch and Belch (2007) identify a number of strategies that can be used to influences the process. Finally, there is a range of ways that consumers apply criteria to make decisions. Belch and Belch (2007) explain how information is integrated and how decisions rules are made including the use of heuristics. The 4

marketing organisation should know how consumers evaluate alternatives on salient or important attributes and make their buying.

4. Purchase Decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intension does not result in an actual purchase. The marketing organisation must facilitate the consumer to act on their purchase intention. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration.

5. Post Purchase Evaluation


The EKB model was further developed by Rice (1993) which suggested there should be a feedback loop, Foxall (2005) further suggests the important of the post purchase evaluation and that the post purchase evaluation is key due to its influences on future purchase patterns.

Internal Influences
Consumer Behaviour is influenced by demographics, psychographics, personality, motivation, knowledge, attitudes and feelings.

External Influences
Consumer behaviour is influenced by culture, ethnicity, family, social class, reference groups and market mix factors.

Preference
Preference also taste or penchant is a concept, used in the social sciences, particularly economics. It assumes a real or imagined choice between alternatives and the possibility of rank ordering of these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they provide. More generally, it can be 5

seen as a source of motivation. In cognitive sciences, individual preferences enable choice of objectives/ goals. Also, more consumption of a normal good is generally assumed to be preferred to less consumption.

Customer Preference
One consumer would in general have different consumption behaviours or preferences from another. He may spend money on computers and technical books, while the other may spend on clothing and food. Availability of this information on consumer preferences will be of great value to a marketing company, a bank or a credit card company that can use this information to target different groups of consumer for improved response rate or profit. By the same token, information on consumption preference of the residents in one region for improved profit. Therefore, it is very important to have a tool that can help analyze consumers behaviours and forecast the changes in purchase patterns.

The need to understand customer preference


Have you ever wondered why your company often loses relatively satisfied customers? Why it is that customer will often indicate they are satisfied with how they have been treated but then leave for a competitors at the first opportunity. Why is customer defection often understood to price? The answer to these and other related questions are found in coming to an understanding of customer preference. The idea that customers prefer one product or one service over another is not new. The ability to identify and measure the elements of such preference decisions with any accuracy and reliability has only recently become available. Research into this area of consumer behaviour has brought understanding to some of the major issues with standard customers satisfaction research. Most importantly we have come to realize that high customer satisfaction does not assure continued customer preference. Satisfaction research over the first fifteen years demonstrates that high satisfaction scores, while a measure of corporate performance on a set of important criteria, do not adequately explain the composition of preference formation and therefore often serve as insufficient predictors of sustained preference or what is normally referred to as customer loyalty.

Loyalty as a concept has also shown itself to be difficult to define. Like beauty, loyalty is truly in the eye of the beholder. We understand there are different types and degrees of loyalty and some of these are not appropriate in describing the relationship between a consumer and a company. However, preference has demonstrated the ability to be effectively measured and to provide meaningful insight into choices consumers make when selecting one provider over another and when determining to continue a relationship over time.

Brand
The American Marketing Association defines a brand as a "name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name."

A brand can take many forms, including a name, sign, symbol, color combination or slogan. The word branding began simply as a way to tell one person's cattle from another by means of a hot iron stamp. The word brand has continued to evolve to encompass identity it affects the personality of a product, company or service.

A concept brand is a brand that is associated with an abstract concept, like breast cancer awareness or environmentalism, rather than a specific product, service, or business. A commodity brand is a brand associated with a commodity. Got milk? is an example of a commodity brand.

A brand is a collection of symbols, experiences and associations connection with a product, a service, a person or any other artefact or entity. Brands have become increasingly important components of culture and the economy, now being described as cultural accessories and personal philosophies.

Concepts
Some people distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of all point of contact with the brand and is known as the brand experience. The psychological aspect, sometimes to as the brand image, is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service. People engaged in branding seek to develop the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is calling brand management. Careful brand management, supported by a cleverly crafted advertising campaign, can be highly successful in convincing consumers to pay remarkably high prices for products which are inherently extremely cheap to make. This concept known as creating value, essentially consists of manipulating the projected image of the product so that the consumer sees the product as being worth the amount that the advertiser wants him/her to see, rather than a more logical valuation that comprises an aggregate of the cost of raw materials, plus the cost of manufacture, plus the cost of distribution. Modern value creation branding and advertising campaigns are highly successful at inducing consumers to pay, for example, 50 dollar for a T-shirt that cost a mere 50 cents to make or 5 dollars for a box of breakfast cereal that contains a few cents worth of wheat. A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of position sentiment in the marketplace, it is said to have achieved brand franchise. One goal in brand recognition is the identification of a brand without the name of the company present. For example, Disney has been successful at branding with their particular script font, which it used in the logo for go.com. Consumers may look on branding as an important value added aspect of products or services, as it often serves to denote a certain attractive quality or characteristics. From the perspective of brand owners, 8

branded products or services also command higher prices. Where two product resemble each other, but one of the product has no associated branding, people may often selected the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner.

Brand Name
A great brand name is one of the most powerful forces in branding, marketing and advertising. It is at once the story about what makes you different from your competitors and the emotional tug that connects you with your audienceall in one or a few words.

A brand name that wields that much power can only come through a powerful positioning strategyone that keys in on the kind of appeal that can touch the hearts and minds of your market in a way the world may have never seen. A great brand name can do this and own the talk of an industry. As you can see, theres quite bit in a brand name.

The brand name is often used interchangeably within brand, although it is more correctly used to specifically denote written or spoken linguistic elements of any product. In this context a brand name constitutes a type of trademark, if the brand name exclusively identified the brand owner as the commercial source of products or services. A brand owner may seek to protect proprietary rights in relation to a brand name though trademark registration. Advertising spokespersons have also become part of some brands, for example Mr. Whipple of chairman toilet tissue and Tony the Tiger of Kelloggs.

Brand Identity
A logo is not your brand, nor is it your identity. Logo design, identity design and branding all have different roles that together, form a perceived image for a business or product. A strong brand identity can position a company above its competition all by itself. But having a brand that's strong takes time, money and effort to develop. It's not as simple as just redesigning a logo or rewriting a tagline. Brand identity is the reason you offer for your customer to choose you instead of your competition.

How the brand owner wants the consumer to perceive the brand and by extension the branded company, organisation, product or service. The brand owner will seek to bridge the gap between the brand image and the brand identity. Brand identity is fundamental to consumer recognition and symbolizes the brands differentiation from competitors.

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History of Verka Milk Plant, Ludhiana Milk Plant Ludhiana is a prestigious milk plant of Punjab State. The Ludhiana District Co-operative Milk Producers Union is co-operative body working, For the farmers by the farmers and of the farmers.

It is situated at Ludhiana, Ferozepur Road 5 kms away from both railway station and bus stand. There is proper facility of transportation, communication and allied activities. Also the state bank of Patiala is situated within the area of Milk Plant and post office is about 1 km from it.

Mr. Parkash Singh Badal, the Chief Minister of Punjab laid foundation stone on milk plant on June 22, 1970. The Milk Union was registered with Punjab Dairy Development Cooperation with 45 societies on 1972. This Plant was build at a cost of Rs. 1.68 crore with the installed capacity of 75000 litres per day. Smt. Indira Gandhi inaugurated this plant on 31st October, 1974. At that time, its membership was 2440 and milk procurement was 10,200 litres per day.

In the year1983, PDDC merged into Milkifed and its control was transferred to milkfed. But with effects of Milk producer and direction it control was transferred to Milk Union. Plant installed capacity was 75,000 litres per day. Due to rapid increase in capacity utilization the capacity increased to 10,000 litres per day. In 93-94 capacity was further increased to 4, 00, 000 litres a day. Its membership rose to 72,000 in 2002-03. Its turnover was 179 crores in 2002-04.

Due to the efficient management of concern this plant has emerged as leader in dairy industry. This plant is among first ten plants in India. This is the first milk plant in India to get ISO-92 International Quality Certificate and IS-15000 (HAAP). Milk Plant produces variety of milk products like milk cake, skimmed milk powder, butter, Paneer, dahi, standardized milk and ghee. Products manufactured in milk plants not only sold in Country, but also supplied foreign like- Dubai.

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Milking has its advent in the very evolution of placental mammals. While the exact time of its appearance not known, the immediate ancestors of modern mammals were much like monodramas including the platypus. Such animals today produce a milk-like substance from glands on the surface of their skin, but without the nipple, for their offspring to drink after hatching from their eggs. Likewise, marsupials, the closest cousin to placental mammals, produce a milk-like substance from a teat-like organ in their pouches. The earliest immediate ancestor of placental mammals known seems to be egomania, a small creature superficially resembling rodents that is thought to have lived 125 million years ago, during the Cretaceous era. It almost certainly produced what would be considered milk, in the same way as modern placental mammals.

Animal milk is first known to have been used as human food at the beginning of animal domestication. Cow milk was first used as human food in the Middle East Goats and sheep are ruminants: mammals adapted to survive on a diet of dry grass, a food source otherwise useless to humans, and one that is easily stockpiled. The animals dairying proved to be a more efficient way of turning uncultivated grasslands into sustenance: the food value of an animal killed for meat can be matched by perhaps one year's worth of milk from the same animal, which will keep producing milk in convenient daily portions for years. Around 7000 BC, cattle were being herded in parts of Turkey. There is evidence from DNA extraction of skeletons from the Neolithic period that people in northern Europe were missing the necessary genes to process lactase. The use of cheese and butter spread in Europe, parts of Asia and parts of Africa. Milk was first delivered in 12

bottles on January 11, 1878. The day is now remembered as Milk Day and is celebrated annually. The town of Harvard, Illinois also celebrates milk in the summer with a festival known as Milk Days. Theirs is a different tradition meant to celebrate dairy farmers in the "Milk Capital of the World."BEHIND VERKA.

Far away from the din and maddening pace of the city, there rests, near Amritsar sleepy village called Verka. Peaceful in its seclusion, life crawls on its own pace. The cool breeze, rustle of the banyan leaves, the chirruping of the birds, the quite flow of the shimmering water besides those soft folds of lush green, nestling a healthy cattle grazing away to glory. A perfect picture of health and happiness. Today, Verka has out-stripped its own boundaries to reach our homes. Verka was there long before it came to MILKFED. But then, it was the difference between being there and making it big. When we at MILKFED took it on, we believed that it had potential to do a lot more. And it did. With little more of a consumer oriented approach; Verka became brand to reckon with. With its growing outlets and thus easier availability, it reached far and wide across the state and beyond.

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Verka at a Glance 1. Full Name - The Ludhiana District Co-operative Milk Union Ltd, Ludhiana. 2. Registered Office Milk Plant, Ferozepur Road, Ludhiana 141004 3. Head Office Punjab State Co-operative Milk Producer Federation Ltd, SCO 153-55, Sector 34-A Chandigarh. 4. Date of Registration 5. Date of Inauguration 6. Commencement of Production 7. Constitution 8. Bankers 9. Product Brand 10. No. Of Milk Agencies 11. Membership 12. No. of Societies 1972 with PDDC. 31st October, 1974 February, 1979 Cooperative Punjab State Central Cooperative Bank. Verka 350 72,000 740
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13. No. of employees 14. Turnover 15. Milk chilling Centre 16. Milk Handling Capacity 17. Chairman 18. Vice Chairman 19. General Manager

602 179 Crores in 2002-03 6 4 lacs liters per day Mr. Raghbir Singh Mr. Satinder Singh Mr. P.K. Verma.

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Board of Directors
1. S. Rahuvir Singh Saharmajra- Chairman. 2. S.Satvinder Singh Bhani Dareiran-Vice-Chairman. 3. S.Sharanjit Singh Dhillon- Director. 4. S.Balvir Singh Jangpur- Director. 5. S. Ajit Pal Singh Tihara- Director. 6. S.Karamjit Singh Khasi Kalan- Director. 7. S.Gurjeet Singh Gujarwal- Director. 8. S.Gurdav Singh- Director 9. S.Mukthiar Singh Payal- Director. 10. S.Kuldeep Singh- Director 11. S.Kuldeep Singh Julamgarh- Director 12. S.Darshan Singh Lopon- Director 13. N.D.D.B Member- Director 14. United Registrar Patiala Division- Director. 15. Managing Director Milk Fed- Director 16. Nominee Milk Fed- Director 17. Deputy Registrar Dairy Development Ludhiana. 18. Deputy Registrar Cooperative Societies Ludhiana- Director 19. Mr. P.K Verma- General Manager.

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Introduction of Verka Milk Plant, Ludhiana Milk Production is a very important part of the agricultural economy in the State of Punjab. Punjab is one of the smallest States in Indian Union with a total area of 50,362 Sq. Kms., which is 1.5% of the Indian landmass. Dairy Farming is an age-old subsidiary profession in the rural areas of Punjab. Punjab is the second largest milk producing state in India, producing around 10% of the countries Milk Production i.e. 8 million tonnes annually.

1. First Milk Plant, of the State was setup at Verka near Amritsar. 2. The brand name of Milk and Milk Products was adopted as Verka. 3. The Foundation stone of Milk Plant, Ludhiana was laid by Hon. S. Parkash Singh Badal, the then Chief Minister of Punjab in 1970. 4. Commissioning of the Plant was done by Punjab Dairy Development Corporation in 1974. 5. Inauguration was done by Late Smt. Indira Gandhi the then Prime Minister of India. 6. The capacity of the plant was 1.00 lac. Litre per day, including powder plant of 7 MT. And now the milk handling capacity is 4.00 Lac Liter per day.

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Verka milk plant, Ludhiana is known Ludhiana distt- co-operative milk produce union. It is situated on Ferozepur road. It is fully equipped with modern fluid milk plants facilities.VMP, Ludhiana is a prestigious milk plant of Punjab state famous all over the country and abroad for the supply of quality milk products. It has got first position in Northern Zone. Its functioning stone was laid by Sh. Prakash Singh Badal, the Chief Minister of the Punjab on June 221970. This plant was inaugurated by our referred Prime Minister Smt. Indira Gandhi. Milk plant is a co-operative society and farmers (producers) share all its profit and losses. Govt. does not provide any financial assistance to milk plant Ludhiana. But Govt. Supervisor and control is there. Law and policy maker is Punjab Govt. here there is no dishonesty in the milk plant. It is very neat and clean organization. The handling capacity of the milk plant per day is 4 Lac Litre. In the year 1983, PDDC merged into milk fed and control of milk plant transferred to milk fed in year 1983. But the efforts of the Directors and milk producer's control of milk plant transferred to milk union, (union of milk producers).Milk plant Ludhiana produces variety of milk products like Milk cake, cheese, Butter, Ghee skimmed milk powder and standardized milk'. Milk plant sells better quality of pasteurized milk to people. Ghee manufactured by this plant is not only sold in country but also supplied to foreign countries like Nepal, Dubai. The new achievements of this milk plant are to achieve the International quality certificate ISO 9002.

Profits of milk plant are distributed to workers and milk produces as increase in rate of fat and SNF and to workers as bonus. In the year 2001-2002 the milk plant achieved the Gross profit (Without Interest & Dep. ) for Rs. 5,7200000and net profit for Rs. 3,3100000.Under the operation flood dairy program the Govt. of India selected the Ludhiana district of Punjab as one of the milk shed to develop An and pattern. Top mgt. In milk plant Ludhiana is controlled by Govt. The Govt. does not given assistance to the milk plant but milk plant can receive loans etc with the guarantee of Govt. policymaker is the Govt. but milk produces spend money. Machinery of best technology has been installed in the milk plant. The machinery is available for the productions of following milk products. 1. Pasteurized fluid milk 2.Sterilized flavoured milk 3.Milkcake 4.Paneer 5.Lassi 6.Ice Cream 7.Butter 18 8 . G h e e 9.Skimmed milk powder

10.Whole milk powder 11.Baby food 12.Infant milk food, but according to the demands from the open market the following milk products are produced:-1. Pasteurized/ Sterlised milk 2.Milk cake 3 . P a n e e r 4.Butter 5 . G h e e 6.Skimmed milk powder Lured by high profits some new concerns in private

sector also try to set up their own plants. So, the present margin of the milk plant has become less and future is looking hard. The milk plant is still standing ahead and not loosing courage. To meet the global competition milk fed Chandigarh has taken steps in the field of advertisement of products and has set aside Rs, 1 crore for this purpose .Milk plant Ludhiana is playing a vital role in Socio Economic development of real merses of Ludhiana Distt. Normally middlemen and traders dominate the market. The milk plant steadily marched toward fix goal of becoming a strong and viable milk plant and now is at No. 1 in Northern Zone. Its entire officer as well as workers is assets to milk plant Ludhiana who are performing their duties delight and with full zeal and energy. Also the building of milk plant. Ludhiana is nicely planned and maintained. There is great system of work. We hope it will maintain its reputation and goodwill "May it progress by leaps and bounds".

Registration
Verka Milk Plant Ludhiana was registered with 45 societies in 1972 by registrar co-operative societies Punjab under co-operative societies act 1961 co-operative on and pattern.

Inauguration of Plant
Verka Plant Ludhiana is first in Northern India and amongst first 10 in Indian Co-operative sectors. It is only famous in Punjab State but all over country on abroad for supply of quality milk products. It is first in India who receives ISO9002 certification. It was built at a total cost of Rs.168 crores and whose foundation stone was laid by honor S. Parkash Singh Badal in June 1970 was commissioned by PDDC in August 1974. It was taken over by Milkfed Punjab in 1983 & after by Ludhiana. District Co-operative milk producers Union limited Ludhiana 1988.

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The capacity of the plant was 1000 lakh liters of milk per day at the time of commissioning in 1974 and it was increased to 400 per day in 1992 at the cost of 1800 crores pasteurization capacity of plant in 20,000 liters/day the latest state of art technology in milk drying is available at this plant. There are 30 tones powder per day is produced (30TDP) the products manufacturing by this plant are Butter. Milk powder Butter, Paneer Liquid milk cake. A network of meets milk over 736 milk producers network societies having 66,388 members in district of Ludhiana. At the very first stage in order to preserve the quality of the milk, which collected from here by village, is transferred to the chilling centres. There are five chilling centers working with the milk plant. Theory are situated at Ramgarh Sardera, Raikot, Samrala, Khana, Machhiwara and Bija Milk and milk products sell throughout the country and also to abroad. The products are becoming popular in overseas countries and they have been exported of gulf countries, Philippines, Dubai, Afghanistan, Pakistan and Bangladesh. The milk plant is manned by were qualified competent and experienced managerial cared and highly motivated and experienced work for to provide best quality of products and best service to esteemed customers to milk plant.

Objectives of Verka Milk Plant, Ldh


1. To strengthen dairy sector, Milkfed came into existence in 1978 and Simultaneously Distt. Milk unions were formed. 2. Village level cooperative societies were also formed on "Anand Pattern". The system was run by the farmers, of the farmers and for the farmers. 3. To give remunerative prices to farmers and to ensure permanent market for the whole year. 4. To provide technical inputs like artificial insemination, to improve the breed of animals, animals health services, preventive disease treatment and awareness regarding farm management etc. 5. To provide ISI marks good quality balanced Cattle feed and fodder seeds to the farmers.

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Salient Features
Verka milk plant has certain salient features through which it is considered as top most Milk Plant in Northern India. Some of the silent features are given below: 1. First Milk Plant in India to get ISO-9092 International quality certification mark. 2. Milk procurement highest among all the Unions in the state. 3. Milk rate paid to the producers among all the Unions highest in the state. 4. 100% Milk Producers Co-operative societies are in profit. 5. Milk procurement per society / per day highest among all the Unions in the State. 6. Aggregate profit of the societies in any year is the maximum among all the Unions in the state. 7. Customer satisfaction and consistency in quality in the key thrust area of the organization. 8. Number of A.I cases maximum among all the Unions in the States. 9. Milk transportation cost lowest among all the unions in the State. 10. Number of sick animals treated highest among all the Union in the state. 11. Cattle feed sold to societies is maximum. 12. F.M.D vaccination maximum among all the unions in the State. 13. Milk chilling cost lowest among all the Unions in the State. 14. Capacity utilization is maximum on yearly basis. 15. Fuel cost per kg milk is lowest among all the Unions in the state. 16. Embryo transfer technology introduced in the field for the first time Northern India. 17. Electricity cost per kg. Milk is lowest among all the unions in the state. 18. Leading Unions to state cooperative development programmed to strengthen the cooperative base at village level. 19. Annual turnover more than Rs. 160 crores, highest among all the Unions in the state. 20. Annual profitability highest among all the Unions in the state.

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Technical Facilities
Various technical facilities are provided by Ludhiana milk plant. Few are as follow: First aid medical facility for cattle is provided at 736 villages. Embryo transfer technology is started under which embryo of cattle producing good quality and quantity of milk called. Doner is transferred to another cattle producing less milk called Recipient so that recipient can breed good quality of species. CIBP (co-operative Institution Building Program) and WDLP (Woman Dairy Leadership Program) are started to provide required training to both men and women society members at village level. These programs inform the milk producers about their rights and duties time by time. TIFAC (Technology Information Forecasting Assessment Council) a new program to produce clean and good quality for milk by spending 2 crores rupees. Increasing the process of Bactoscan to check the bacteria in milk.

Necessity for Production Enhancement


1. Milk production in the area increased manifold with the result. Resultantly started receiving daily 2.50 LPD of milk. 2. To increase the participation of women 132 exclusively women societies are organized with 15500 women members. Through Punjab Women Dairy Project a Central Govt. sponsored scheme. 3. Milk Production in the area increased manifold with the result. Resultantly started receiving daily 2.50 Lac LPD of Milk and Peak procurement 4.5 Lac LPD. 4. To cater to the increased demand, necessity of expansion of milk plant arose. 5. Capacity of Milk Plant enhanced from 1 lac to 4 lac litres with additional powder. Plant of 30 MTs. 6. Plant is having latest State of Art Technology with MVR (Mechanical Vapour Reprocesses) along with a drier with fluidized bed through which agglomerated Powder is manufactured. 7. This improved the socio- economic conditions of marginal and poor farmers. 8. The profitability of the plant and turnover of the plant improved a lot. 22

Quality of Milk and Milk Products


1. To improve the quality of raw milk, Clean Milk Production program started in 700 villages and resultantly the quality of products increased. 2. Milk Plant, Ludhiana was the First in India in Dairy Sector to get ISO Certification. 3. Under ISO Certification and HACCP (IS 15000) Milk Union started export of Ghee, SMP to Gulf Countries Philippines, Manila, South Africa, Singapore, Bangla Desh etc. The export is more than 5.5 crore during the last year. 4. To further improve the quality of Raw Milk, Milk Union started 366 Automatic Milk collection Stations at village level. 5. To meet the Challenges of WTO Milk Union started TIFAC program with the help of Ministry of information. 6. 51 Bulk Milk Coolers have been installed at village level to chill the milk on this spot and to check bacterial count. 7. 64 model dairy demonstration farms have been established and 202 milking machines have been provided in distt of Ludhiana which has encouraged the farmers to adopted dairy on large scale. 8. Milk Union, Ludhiana is first in India which has installed Bectoscan worth 70 lacs and Somatic cell count machine have been installed at milk plant, Ludhiana, 9. Further 23 BMC has been approved under central govt. Scheme on 75% grant to be installed in societies.

Present Status/ Achievements of the Plant


1. No. of societies increased from 94 to 802 and its membership from 5400 to 78500. 2. Milk Procurement has increased from 10200 LPD to 2, 50,000 LPD. 3. Highest milk price is being paid to the milk producers as compare to other plants in the states 4. Products being manufactured by Ludhiana Plant are sold at premium rates through out of the country and in the International Market. 23

5. City supply has increase from 66000 LPD to 1, 98,000 LPD. 6. Turnover the plant touched to 283 crores Profit of the union has increased manifold. 7. Capacity utilization of the plant is more than 85%. 8. Milk products like Ghee, Table Butter, Skimmed Milk Powder, Whole Milk Powder, Curd, Paneer, Milk Cake etc are being manufactured by Milk Plant Ludhiana.

Milk Union, Ludhiana is further progressing by leaps and bounds and it is hoped that in the years to come, it will achieve excellent results and will help improve the social and economic condition of the people at large.

Division & Units


Milk plant has set up six milk chilling centers at different towns. Brief description of these centers is as under: (1) MILK CHILLING CENTRE, BIJA -

Distance from Milk plant Capacity Societies

40 Kms 30,000 liters per day 111

(2) MILK CHILLING CENTRE, MACHIWARA -

Distance from Milk plant Capacity Societies

40 Kms 30,000 liters per day 105

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(3) MILK CHILLING CENTRE, KHANNA -

Distance from Milk plant Capacity Societies

55 Kms 30,000 liters per day 150

(4) MILK CHILLING CENTRE, RAMGARH SARDARN -

Distance from Milk plant Capacity Societies

44 Kms 20,000 liters per day 65

(5) MILK CHILLING CENTRE, RAIKOT -

Distance from Milk plant Capacity Societies

40 Kms 30,000 liters per day 84

(6) MILK CHILLING CENTRE, BAUNDLI -

Distance from Milk plant Capacity Societies

39 Kms 30,000 liters per day 86

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Co-Operative Structure
Milk Plant Ludhiana follows the Pattern co-operative system is characterized by 3 tyre structure with organization at village level, district & State level.

(1) Village Level Organization:


All resident of these villages who sell milk to the societies are member of these societies, managing committee of society is elected by their members.

(2) District Level Organization:


The district is divided into 12 zones and the members of the society of each zone elect one director. There is no contribution specifies as regards the eligibility of director. Thus 12 directors are elected and 7 got

employees are taken to constitute a board. The overall control of the plant is under M.D and he is answerable to the board constituted at the district level.

(3) State Level Organization:

Each

district sends one director and thus a Board of director is constituted at the State level. Head office of the State level Organization is at Chandigarh. Board of director constituted of one director from each district and 7 govt. employees. All the policies regarding procurement, pricing, production and export are formulated at this level.

Organization Structure
Organizational structure is a systematic combination of people function and physical facilities. It constitutes a formal structure with defined authority and clear responsibilities. Each and every person is given a job and then authority is assigned to him for the job, he is made responsible for the job. The structure and process by which a cooperative group of human being allocates its task among is members, identifies relationship and integrates its activities towards the common objectives.

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Organization Structure of Milk Plant:


Its board consists of 18 directors. They appoint General Manager and chairman. Then there are different departmental heads like Accounts Manager, Production Manager & Purchase Manager etc. these heads have deputy manager for there assistant. Then each department has different level. Verka Milk Plant is well organized. It helps in efficient running concern. The top management of Milk Plant is selected through by the members of the milk societies. Now the question arise that how the milk societies are formed. So firstly, the field staffs of Milk Plant visits the various villages for encouraging people to make cooperative department to purchase milk from villages. Minimum 35 members are required for making a society. To become the member of the society a person has to pay Rs.10 as membership fees and other purchase a share of Rs.1. at present there are 72500 members of the milk societies.

List of Various Departments


(1) Personal and HRD Department
This department is headed by manager P&HRD department who is assisted by supporting staff to carry out function of this section. This section ensures compliance of labour laws, maintenance of proper records and completion of administrative formalities for timely payments of dues to employees. It is also responsible for minting cordial relationship between workers and management.

(2) Marketing Department


The success of concern lies not only is production but mainly in successful marketing. Production of goods and services has no meanings unless goods and services are exchanged profitably for money or moneys worth. This involves the movement of goods from the manufacturers to ultimate consumers. In bringing the producer and concern of marketing. Marketing is a process of getting the right goods to right consumers at the right place, at right time and prices. Deputy Manager who is further assisted by supporting staff heads

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marketing section. He regulates the production of milk and milk product in different ways to ensure maximum possible returns from sales.

(3) Procurement Department


Milk procurement business is being looked after mainly by milk union Ludhiana. Milk is collected by milk producer co-operative societies ate the village level and purchased by milk union, Ludhiana which further supplies that milk plant, after charging commission from milk plant at rates specified by milk union. The plant was registered in the year 1972 with primary membership of 45 milk producer co-operative society. At the present it has 767 co-operatives societies. Procurement department is headed by manager who is assisted by technical officers. Milk is received at the dairy dock in 40 litres. Cans from milk co-operatives societies located near Ludhiana.

(4) Production Department


This department is headed by production manager and technical staff and officers and operation. Manager is responsible for production planning, receiving good quality of milk, its processing and production of milk products. He is responsible for achieving production target with minimum wastage. He also guides workers for better performance. The production is an important activity because other department purchasing extra revolve around it. Different milk products are produced as per availability of milk and as per demand of market. First of all the requirement of milk demand is fulfilled and then remaining milk is used for producing various products such as ghee, butter, cheese.

(5) Purchase Department


This department is headed by purchase officers who are assisted by supporting staff in maintaining regular supply of store items. This section ensures timely purchase of required store items at very reasonable cost.

Functions of purchase Department:


1. To receive purchase requisition from stores.

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2. To buy goods or material wisely at reasonable prices. 3. To invite quotation from a number suppliers and preparing comparative statement to choose a right supplier. 5. To check the suppliers invoices as regards price, quantity, quality etc.

(6) Store Department


This department stores all the essential equipment and material and stationery required in all the departments. It also keeps the records of goods purchase and goods in stock as well as the goods the used by the particular department. The main purpose of this section is to keep the full record of packed material. The products are stored at clean and cool places.

(7) Engineering section


This section is headed by engineering manager who is assisted by technical officers. He is responsible for identifies all, machine needing maintenance to avoid any breakdown during the production. He is also supposed to introduce to new machinery by which the cost of production can be decreased it also insured are transport vehicles of milk plant.

(8) Management Information system


MIS is a system where information about the activities of plant is supplied to management. Accurate and precise information to support the operation management analysis and decision making function in an organization. Here data are collected from different section in an organization, which can be useful to the management for decision making.

(9) Accounts Department


A manager account is headed of this department. He is responsible for the overall management of accounts. This section is responsible for timely payment to all the employees of milk plant and also to the parties dealing with it. It records all the transaction in the proper books to provide necessary information to the 29

authorities whenever required. In this all financial statement are prepared by experienced accountants and then audited by auditors and finally approved by chartered accountant annually. I got permission from head office Chandigarh to have training in account department. I learnt from Mr. Harbajan Singh and Mr. Bedi. I learnt the brief description is as follow: Posting of entries in billing passing register regarding suppliers name, bill number and amount. Procedure of bill passing. Match the entries in bill passing register with entries given in purchase register and find the discrepancies, if any.

(10) Security Department


One senior security employee, who is assisted by a team of well-trained personnel manager the security department. This department keeps proper watch on men, money and material while entering in and going out of the plant.

(11) Quality control Department


High quality of milk and milk products assists ensures quality by testing the raw material as well as finished products. Quality control manager heads this department and the technical staff assists the manager by conducting all type of tests on raw material and finished products with the help of sophisticated equipment and machines purchased. Quality control laboratory helps in maintaining.

Products of Verka Milkfed has formulated company specifications for its milk & milk products to provide standard and quality of products to consumers.

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.

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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 ropar 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:-

(a) Standardized Milk (b) Toned Milk (c) Double Toned Milk

2. 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: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.

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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: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, especially in Punjab and it is also liked by the people of other states. It comes in the 200 ml. tetra pack.

6. SFM: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.

7. 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

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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.

8. Paneer: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.

9. Curd/ Dahi
Dahi or curd is the product obtained from boiled milk by souring, natural orotherwise, 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.

10. Raseela: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.

SWOT Analysis of Verka


1. Strengths
(a) Brand loyalty among the rural people for verka products. (b) Good brand image of verka products in the minds of rural people. (c) Faith on verka products by the rural farmers.

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(d) Rural people satisfaction with Quality, price, Quantity and availability is also business.

strengthen the dairy

2. Weaknesses
(a) Lack of product advertisements by the plant, such as posters, glow signs etc. (b) Lack of proper distribution system in rural area. (c) Lack of proper marketing network in rural areas as like in urban areas. (d) Very high rates of products such as bottle milk for Rs.15 for 200 ml.

3. Opportunity
(a) Greatly improved expert potential for milk products of western as well as traditional (b) Proper utilisation of available resources to decrease the per unit cost. (c) By product utilisation for import substitution. (d) Growing demand for milk and milk products. types.

4. Threats
(a) Introduction of foreign products in Indian market. (b) Poor quality of milk. (c) 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. (d) Export of quality feed under the liberalisation policy.

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Major players in the Global Indo (NRI / Indian) Ethnic Ready-to-eat Industry (1) Nestle
Nestle India Limited, A Subsidiary of Nestle was found by Henri Nestle in Switzerland in the year 1867. The company was established in India in 1961, in an effort to upgrade the existing standards of the Indian milk industry at that period. The first production unit was launched in Punjab. Nestls relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After Indias independence in 1947, the economic policies of the Indian Government emphasised the need for local production. Nestl responded to Indias aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy.

Progress in Moga required the introduction of Nestls Agricultural Services to educate advice and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestl set up milk collection centres that would not only ensure prompt collection and pay fair prices, Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today.

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Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods.

Products of Nestle India:Nestle India Limited has spread its wings to significant areas within food and beverage industry. It has various products like chocolates, infant food, confectionery, prepared dishes and so on. The company produces delicious chocolates of varied tastes, quality, make and ingredients to allure the taste buds to the level of indulgence with such widely known chocolates as milky bar and kit kat, which differ in their hues. The beverage section offers refreshing Nescafe and health drinks such as Milo, Nestle milk and the mouthwatering condensed milk, known as milkmaid. Magi, noodles, nestle jeera Raita fall under the category of prepared dishes, whereas the latest additions of nestle India like nestle fresh n Natural Dahi and Nestle Slim milk have won million hearts with their exquisite flavours.

(2) Amul
Gujarat cooperative milk marketing Federation (GCMMF) is Indias largest food products marketing organization. Apart from being known for its dairy products, Amul has ventured into the ready to-eat industry and includes processed cheese, pure Ghee, Shikhand, natramul and Mithaee Gulab jamuns among its offerings.

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AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946.

Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 80.05 billion in 2009-10). Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organisation and of a proven model for dairy development.

(3) Gits
Gits produces the selected range of popular ready to cook and instant foods that cover a range of ethnic Indian cuisine and where the recipes have Global pattete acceptance.

Established in 1963, Gits pioneered the convenience packaged food segment in India. Since inception our quality policy, as set by the founders, is simple and valuable "We will not sell what we don't relish ourselves."

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We are not just the pioneers in introducing pre-packaged foods but we are also amongst the first Food Product manufacturing companies in India to obtain ISO 9001 2008 (Quality Standard) ISO 22000 (Food safety). The best testimonial to our quality and reliability however, is the rapidly growing family of Gits loyal consumers around the world over four decades.

Working in a state of constant innovation aided by modern technology ensures that our food reaches customers in the purest form possible. With our commitment to quality and taste, we assure you that Gits products can be imitated but never equalled.

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Chapter - II Review of Literature

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Review of Literature
(1) Singh et al. (1990) conducted a survey in Vijaywada (A.P), which indicated that 11 per cent of total income per month was spent on milk and milk products particularly fluid milk and ghee. The per capita expenditure on milk and milk products increased with the income level.

(2) Singh and Hundal (1992) conducted a study on seasonal variations in production, marketed surplus and prices of milk in urban and rural areas of Punjab. The results revealed that the market price of milk was observed to be non- significant in rural areas. The average price per litre of buffalo and cow milk ranged from 2.37 to 2.58 and Rs. 2.25 to Rs. 2.50 in Urban and rural areas respectively. The corresponding figures for rural areas were Rs. 1.62 to 2.02 and Rs. 1.25 to 1.50.

(3) Barik and Singh (1993) found that marketed surplus decreased with the increase in size of holding. On the other hand quantity consumed increased with the increase in size of land holding. They further reported that as number of intermediaries increase the per cent share of the producer in final price decrease.

(4) John et al, (1994) compiled a questionnaire stating the taste of home -made and commercial dairy ice-cream between various participants. It was concluded that out of 100% participants 56% participants was in favor of homemade ice-cream due to superior taste, quality and proper knowledge of ingredients.

(5) Andrew et al, (1996) studied consumer response to the dairy sector in the UK. Stress was paid on factors that affect consumer purchasing and consumption behaviour across wide range of dairy products.

(6)Elaine et al, (1997) studied determine the level of acceptance of a hypothetical genetically modified dairy spread in a particular country (Ireland). He concluded that genetically modified product

40

was rejected by most of the mentioned countrymen. Such information provided immense knowledge to the existing market players and to companies considering opportunities in the market.

(7) Jane et al, (1998) studied the consumption patterns of fresh milk. Among yogurt drinks and flavour of milk and milk products are the main area of consumers satisfaction consumer. Who purchased larger quantities of milk and milk products are those who have relatively higher household incomes.

(8) John et al, (2001) investigated various factors affecting of milk perception in a country (Scotland). He studied various marketing campaign and its effectiveness in portraying milk as an effective healthy product. He concluded that there was a high recognition and positive attitude towards the campaign health benefits from the milk was viewed but they did not appear to be instrumental.

(9) Shao, (2003) studied the improvement of flavour of dairy food by production of national fruity flavour. In situ production of aroma-active esters in dairy foods was done in order to improve flavour and also to produce fruity flavour concentrate.

(10) Christian et al (2005) studied and applied structural approach to understand the importance of personal ecological norms in purchasing organic food. It was revealed that people having strong. Personal norms use organic production, ingredients as their main crier a during decision process.

(11) Hecer, (2006) studied effects of various socio-economic factors on the consumption of milk and milk products. Main socio-economic factors that were revealed from the study were between urban and rural population in terms of age, education, occupation income that affects their consumption behaviour rural consumers being. Illiterate and h a v i n g l o w i n c o m e g e n e r a l l y c o n s u m e u n p a s t e u r i z e d m i l k w h e r e a s u r b a n c o n s u m e r s h a v i n g h i g h i n c o m e consumes pasteurized milk. 41

(12) Thakur (2008) examined the extent of milk production and its disposal by various categories of milk producers. The marketed surplus was found to be higher among the weaker section that between the medium and large farmers in the experimental villages. The difference was however, less marked in the control villages. In experimental villages the use of improved agricultural inputs and total income were also found to be higher. the total income as well as the income from crop and dairy was high in the experimental villages covered by the milk co- operative than the controlled villages.

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CHAPTER-III OBJECTIVES

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Objectives of Research (1) To know the buying behaviour of the consumer. (2) To check the satisfaction level of the consumer. (3) To know the factor affecting the sales of verka. (4) To know the service provided by verka to the customers.

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CHAPTER-IV RESEARCH METHODOLOGY

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Research Methodology Methodology is the specification of method of acquiring the information needed to structure or solve the problem at hand i.e. Research Methodology is a way to systematically solve the research problem. The essence of research Conducted by me is to analyze the present market position of verka products among its competitors and the problem which are being faced by customers, wholesalers and retailers. The eventual is objective to suggest some recommendations to the company so as to enable them to increase their market share. One in analyzing my samples follows no convention method. The total analyze is based on the internees from the questionnaire put on before my sample size. A research of this cannot be done all once throughout large area in a limited time so Ludhiana has been selected for Research.

Introduction
According to Prof. Phillip kolter, 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.

Steps of Marketing Research Process


(a) Defining Problem and Research Objectives (b) Developing the research plan (c) Collection of Data (d) Presentation of the findings

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(a) Defining Problem and Research Objectives


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 the verka product To ascertain rescannable price of verka products To ascertain the best product of verka brand Why people prefer verka product To know about sales pattern To know the competition level faced by verka products in the market To know the opinion of people about verka products regarding its packing, taste etc.

(b) Developing the research plan


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 decision regarding data source, search approached, search instruments and scanning etc. There are two plan conduct methods which are as follow:-

A. Data Sources
There are two types of data sources 1. Primary Data Personal interviews are conducted, which enables collection of oral verbal response. This is fact to face contracted with structured or sometimes even unstructured patterns. This helps in obtaining indent information.

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2. Secondary Data Secondary data can be obtained from different milkfed magazines annual reports, financial documents referred.

B. Research Approach
Surveys 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.

C. Research Instrument
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 and demand etc. This is one of the easiest methods of collecting information.

D. Sampling Plan
After deciding on the research approach and instrument, we design a sample plan. This plan calls for three decisions 1. Sampling Unit Here we define what is to be surveyed i.e. the target population that will be samples. In our case the general public in cities and towns come under the sampling unit. 2. Sampling Size Large samples give more reliable results. In our study 100 customers were surveyed in Ludhiana. 3. Sampling Procedure Area sampling is using because it is not practically possible to visit all places of India, therefore Ludhiana chosen for Survey. 48

E. Research design
The research design is the framework for the study that guides the collection and analyzing of the data. So, the fundamental to the success of any formal marketing research project is sound research design, a good method of data collection and analyzing time required for project and estimate of expenses to be incurred.

F. Research Type
Conclusive research approach has been used in this project i.e. descriptive research through survey method, which aims towards finding new relationship and finding new hypothesis in which the researcher does not have control over the variable. Questions asked for the purpose according to the nature and attitude of the respondents. This gives advantages of providing the necessary information rather than the unnecessary details.

G. Contact Method
In this decision is taken that how the objective should be contacted i.e. whether by mail, Questionnaire, telephone and interviews. In our research personal interview is the most convenient and relevant method.

H. Collection of the information


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 the 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.

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CHAPTER - V DATA ANALYSIS & INTERPRETATION

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1. Kind/Source of milk Purchased?

Packed Dairy Vendors

43 25 32

50 45 40 35 30 25 20 15 10 5 0 Packed Dairy Vendors

Interpretation According to 100 respondents 43% people says that they use to use packed milk, 25% says they use dairy milk and rest 32% says they use milk brought by vendors.

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2. Have you ever used Verka Products?

Yes No

87 13

Yes No

Interpretation According to 100 respondents 87% says that they use to verka products and rest 13% people says that they do not use verka products.

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3. Which of the following verka products you have used?

Milk Paneer Lassi Dahi Ghee Any other

24 20 16 11 14 15

30 25 20 15 10 5 0 Milk Paneer Lassi Dahi Ghee Any other

Interpretation According to 100 respondents 24% people says that they use milk, 20% says they use Paneer, 16% says that they use Lassi, 11% says that they use Dahi, 14% says that they use Ghee and Rest 15% say that they use other products of verka.

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4. Since when you are using verka milk Products.

Less than 1 year 1-5 year More than 5 year

19 49 32

Less than 1 year 1-5 Year More than 5 year

Interpretation According to 100 respondents 19% people says that they use verkas products less than 1 year, 49% says that they use Verkas products 1-5 years and rest 32% say that they use verkas products more than 5 years.

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5. What is the frequency of your purchase of ready to eat brands?

Daily Weekly Monthly Fortnightly Occasionally

32 24 18 15 11

35 30 25 20 15 10 5 0 Daily Weekly Monthly Fortnightly Occasionally

Interpretation According to 100 respondents 32% people says that they use verkas product daily, 24% says that they use weekly, 18% says that they use monthly, 15% says that they use fortnightly and rest 11% says that they use Occasionally Verkas products.

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6. When do you like to buy the verka products?

In routine During Travelling For break For enjoy

32 18 23 27

35 30 25 20 15 10 5 0 In routine During Travelling For break For enjoy

Interpretation According to 100 respondents, 32% people says that they use verkas product in routine, 18% people says they use during Travelling, 23% says that they use for break and rest 27% people says that they use for enjoy to verkas product.

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7. Do you think whether the delivery of verka milk products on time?

Yes No

58 42

Yes No

Interpretation According to 100 respondents, 58% people says that the delivery of verkas products on time and rest 42% people says that the delivery of verkas products is not on time.

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8. Do you think whether the price is reasonable of verka milk products?

Yes No Some how

32 38 30

Yes No Some how

Interpretation According to 100 respondents, 32% people says that price of verkas products is reasonable, 38% people says that price of verkas products is not reasonable and rest 30% people says that price is somehow reasonable.

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9. What do you think about the packing of the different verka products?

Very good Good Satisfactory Poor

41 34 18 07

45 40 35 30 25 20 15 10 5 0 Very good Good Satisfactory Poor

Interpretation - According to 100 respondents, 41% people says that packing of verkas products is very good, 34% people says that packing of verkas products is good, 18% people says packing is satisfactory and rest 07% people says that packing is poor.

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10. In your opinion taste of verka products are?

Delicious Good Satisfactory Poor

31 42 22 05

45 40 35 30 25 20 15 10 5 0 Delicious Good Satisfactory Poor

Interpretation - According to 100 respondents, 31% people says that taste of verkas products is Delicious, 42% people says that taste of verkas products is good and 22% people says that taste is Satisfactory and rest 05% people says that taste is poor.

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11. What is your opinion about the quality of the various verka products?

Excellent Good Satisfactory Poor

31 45 15 09

Excellent Good Satisfactory Poor

Interpretation - According to 100 respondents, 31% people says that Quality of verkas products is Excellent, 45% people says that quality of verkas products is good and 15% people says that quality is Satisfactory and rest 09% people says that quality is poor.

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12. Rate the factors, which motivate you to buy the ready to eat brands?

Quality Price Availability Taste Brand name

28 17 21 23 11

30 25 20 15 10 5 0 Quality Price Availability Taste Brand name

Interpretation - According to 100 respondents, 28% people says that Quality motivate to buy the verka products, 17% says price, 21% says availability, 23% says taste and rest 11% says Brand name motivate to buy the verka products.

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13. How much you satisfy from verka products?

Strongly Satisfied Satisfied Neutral Dissatisfied Strongly dissatisfied

21 32 26 15 05

35 30 25 20 15 10 5 0 Strongly Satisfied Satisfied Neutral Dissatisfied Strongly dissatisfied

Interpretation - According to 100 respondents, 21% people says that they are strongly satisfied from verka products, 32% says that they are Satisfied, 26% says that they are Neutral, 15% says that they are Dissatisfied and rest 5% says that they are Strongly dissatisfied from verka products.

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CHAPTER - VI LIMITATIONS

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Limitations of Research
1. Due to Ludhiana being a large city, it was not possible to interact with people from all over the city. 2. Few consumers were reluctant to fill the questionnaire as they perceived us as sale men and also shown reluctance in filling the Questionnaires. 3. Generally, the respondents were busy in our work and were not interested in giving their responses. 4. There is no measure to check out whether the information provided by the consumers is correct or not. 5. Bias on the part of respondents to provide the information.

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Chapter VII SUGGESTIONS & CONCLUSION

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Suggestions 1. At some places, it was found that demand is more, but availability is not satisfactory so quick and adequate supply must be ensured. 2. There should be replacement of product, if that product is damaged by companys own fault. For instance passed expiry date or poor packaging. 3. Packing of verka products should be improved like Cane can be used for packing of cold coffee and milk, which are earlier packed in bottle; it will attract the more customers. 4. Customers have problem regarding Schemes available. So company should provide some schemes to customers and retailers. 5. Verka should advertise to attract the peoples of the city. 6. The price range should be affordable, which attracts everybody. 7. Time based feedback must be taken by the company from the retailers as well as customers.

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Conclusion Working at Verka Milk Plant, Ludhiana 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. It was an amazing experience with learning all the way, which helped me to brush up my knowledge and skills. After the competition of market study, I have come to know major factor as discussed below:-

At present most of the consumer likes to buy the verka products. Factor affecting the consumer for buying are range, status and quality. The entire respondents were aware about the Verka in Ludhiana.

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CHAPTER - VIII BIBLIOGRAPHY

69

Bibliography
1. Philip Kolter (2008) Marketing Management (Eleventh Edition), Pearson Education Inc., Singapore. 2. Ravi Shanker (2007) Services Marketing: The Indian Perspective, Excel Books, New Delhi. 3. Donald S. Tull & Del I. Hawkins (2008) Marketing Research: Measurement & Methods (Twelfth Edition), Prentice Hall of India Pvt. Ltd., New Delhi. 4. Kothari C R, Research methodology Second Revised Edition Publishers- New Age International (P) Ltd., Year- 2008. 5. C.R. Kothari (2009) Research Methodology: Methods & Techniques ( Second Revised Edition), New Age International Publishers, New Delhi. 6. Jim Blythe (2002) The Essence of Consumer Behaviour, Pearson Education Inc., Singapore. 7. Dr. Arvind Kumar Yadav and Mr Suman Yadav (2008), Journal of IPM Meerut. 8. Dr. N. Kathirvel and Dr. N Chander sekaran (2008), Indian journal of Marketing. 9. J.V Rangeswara Reddy (2009), Indian journal of marketing. 10. Journal of Management Research. 11. Brochure/booklet/magazine Verka milk Plant, Mohali

Websites:1.www.google.co.in 2.www.verkafoods.com 3.www.milkfed.nic.in 4.www.milkfed.jp 5. www.milkfed.org.

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CHAPTER - IX ANNEXURE

71

Questionnaire For Consumers


Dear Sir/Madam, I am a Student of Punjabi University, Patiala Conducting a Market Survey on Study of Consumer Behaviour About Verka Products. I request you to fill this Questionnaire and I assure that this data will be used only for study purpose and it will be kept Confidential.

Name - .......................................... Address....


1. Kind/Source of milk Purchased? (a) Packed (b) Dairy (c) Vendors

2. Have you ever used Verka Products? (a) Yes (b) No

3. Which of the following verka products you have used? (a) Milk (b) Paneer (c) Lassi (d) Dahi (e) Ghee (f) Any Other

4. Since when you are using verka milk Products? (a) Less than 1 year (b) 1-5 years (c) More than 5 years

5. What is the frequency of your purchase of ready to eat brands? (a) Daily (b) Weekly (c) Monthly (d) Fortnightly (e) Occasionally

6. When do you like to buy the verka products? (a) In routine (b) During travelling (c) For break (d) For enjoy

7. Do you think whether the delivery of verka milk products on time? (a) Yes (b) No

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8. Do you think whether the price is reasonable of verka milk products? (a) Yes (b) No (c) Some how

9. What to you think about the packing of the different verka products? (a) Very Good (b) Good (c) Satisfactory (d) Poor

10. In your opinion taste of verka products are? (a) Delicious (b) Good (c) Satisfactory (d) Poor

11. What is your opinion about the quality of the various verka products? (a) Excellent (b) Good (c) Satisfactory (d) Poor

12. Rate the factors, which motivate you to buy the ready to eat brands? (a) Quality (b) Price (c) Availability (d) Taste (e) Brand name 13. How much you satisfy from verka products? ( ) ( ) ( ) ( ) ( )

Strongly Satisfied

Satisfied

Neutral

Dissatisfied

Strongly Dissatisfied

14. Any other Comments or Suggestions ............................................................. ............. 73

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