Professional Documents
Culture Documents
STRATEGY FOR INCREASE SALES FROM 153000 ltrs. To180000ltrs. AT SUDHA PATNA DAIRY BY SRIKANT KUMAR UNDER THE GUIDANCE OF NIRANJAN KUMAR (MARKETING INCHARGE) VANDANA SINGH (MARKETING OFFICER) SUBMITTED TO SIMMC,PUNE IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE PGDM PROGRAMME
ACKNOWLEDGEMENT
I feel great pleasure to present this summer training report on Distribution and Marketing strategy for increasing sale and organization overview at SUDHA DAIRY, Patna. Being a student of M.B.A it is my pleasure to have an opportunity to present this Industrial Summer Training report at SURYADATTA INSTITUTE OF MANAGEMENT AND MASS COMMUNICATION I thank SUDHA DAIRY for giving me an opportunity to complete my project. I wish to give grateful acknowledgements to my project guide MR.NIRANJAN KUMAR (marketing incharge) Miss. Vandana (marketing officer) and all the staff members of SUDHA for giving me invaluable information and guidance on the necessary the theoretical aspect and methodology for handling my work, without valuable guidance this project report cannot be made possible. A special word of thanks to my director as this type of analysis work is the core function of management studies. My sincere thanks are also to my project guide Prof. MANISH SINGH for his guidance and technique about report writing that have been a key factor in the successful completion of this project. Last but not the least I acknowledge the support and encouragement of my parents, teacher and friends.
DECLARATION
This project report on Optimization of Distribution system of milk and suggest a Mktg. Strategy for increasing sales from 153000 to 180000. at SUDHA PATNA DAIRY is submitted by me for the partial fulfillment of the course of PGDM programme from SIMMC, pune This is an original work done by me expected the guidance received which has been properly acknowledgement in the report. This is not the copy of any other report or any part of it hasnt been submitted for the award of any degree or diploma.
Srikant kumar
Executive Summary
This project has been under taken to know the optimization of sales of milk and optimization of distribution system in sudha dairy. Then we decided to some parameter for this project and made the questionnaire for customer and retailer. And doing the survey between customer and retailer through questionnaire then we got some positive and negative result of sudha milk through customer and retailers. As a part of our research analysis according to survey resultant and we used to graphs, brand, and pie chart for easy to represent fact and figure of analysis data of sudha dairy. An meet the sudha management team such as management team such as Manager, Marketing manager, quality department, Dairy Engeenier, production department, and staffs of sudha dairy, an finding the profile, financial data production process, quality maintenance, technology and technical equipment of sudha Patna dairy. After the research work we finding the some suggestion for optimizing sales of milk and optimizing distribution system of sudha Patna Dairy and made of Marketing strategy of optimization process of sales and distribution system for Sudha dairy. The research work under taken by us has given practical experience and view of retailer and customer about the milk and other milk product. Overall service of the sudha dairy is satisfactory and quality maintenance is also good. This has given an idea how to deal with customer and retailer involved in the marketing and distribution activities of the Sudha Milk.
CONTENTS
SR NO.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
PARTICULARS
Introduction Industry Profile Company Profile SWOT Analysis Objective of the Project Work Research Methodology Data Collection & Data Analysis Finding Limitations Suggestions
11.
Appendices, Bibliography
CHAPTER 1: INTRODUCTION
It is our pleasure to have this type of interesting topic related to Distribution and Marketing strategy for increasing sale. As we know that distribution and marketing strategy plays a very important role in marketing. So first of all we should know what is distribution and marketing strategy. According to Drucker Both the Market and Distribution Channel are often more crucial than the product. They are primary, the product is secondary. They deserve a good deal of attention and study much more than usually received. A dependable and sound distribution system is essential. It creates and adds value to all most all products. They relate to cost reduction, financing, co-operation in setting prices communication assistance and reduction of number of transactions. Transportation and distribution system in local area is divided into 18 routes. These routes are also known as by the help of codes. These codes are 601, 602, 603, 604, 605, 606 etc. Marketing is a business term referring to the promotion of products, especially advertising and branding. The term developed from the original meaning which referred literally to going to market, as in shopping, or going to a market to sell ones products. The American Marketing Association (AMA) states, Marketing is an organizational function and set of processes for creating, communicating and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stakeholders. Marketing practice tends to be seen as a creative industry, which includes advertising, distribution and selling. It is also concerned with anticipating the customers future needs and wants, which are often discovered through market research.
I have my summer project in Sudha Patna Dairy. In my project I had to find out Optimization of Distribution system of milk and suggest a Mktg. Strategy for increasing sales from 80,000Lts to 1 Lakh Lts. Sudha dairy is well known brand in Bihar and Jharkhand.
Indias 18 best milk sheds with the milk markets of the four metropolitan cities of Delhi, Mumbai, Calcutta and Chennai.
#Phase 2: Phase 2 of the project implemented during 1981-85 raised this to some 136 milk sheds linked to over 290 urban markets. Milk powder production went up from 22,000 tones in the pre project year to 1, 40,000 tones in 1989. #Phase 3: Phase 3 of Operation Flood (1985-1996) enabled idol cooperatives to rapidly build up the basic infrastructure required to procure and markets more and more milk daily. Facilities were created by the cooperative to provide better veterinary first-aid health care services to their producer members. Thus, operation flood was carried to create white revolution in India. The operation got enormous success and gave several positive results to name a few: It has led to sustained production increases, raising per capita availability of milk to nearly 200 grams per day. The dependence on commercial imports of milk solids was removed. Modernization and expansion of the dairy industry and its infrastructure was made possible. Marketing expanded to supply hygienic and fair priced milk to some 300 million consumers in 550 cities and towns. Ninety lacks small producers in 74,000 villages are earning jointly an incremental income of Rs 2500 carores from milk.
A nationwide network of multi-tier producers cooperatives, democratic in structure and professionally managed, has come into existence.
Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and the manufacture of milk products on an industrial scale. The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. The dairy sector has developed through co-operatives in many parts of the State. During 1997-98, the State had 60 milk processing plants with an aggregate processing capacity of 5.8 million litres per day. In addition to these processing plants, 123 Government and 33 co-operatives milk chilling centers operate in the State. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japans $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43, 500 crores by year 2005. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005, the value of Indian dairy produce is
expected to be Rs 10, 00, 000 million. Presently the market is valued at around Rs.7, 00, 000 mn
Dairy:- It is a farm or section of a farm that is concerned with the production of milk
and other milk products. (A place where Milk and Milk product are handled.)
MILK- A white or yellowish fluid secreted by the mammary gland of animals. It consists of emulsion of fat in water with casein and other proteins, milk sugar and inorganic salts. The solids other that fat include protein, carbohydrates, water-soluble, vitamins and minerals.
MILK
FAT
SNF
VITAMIN A D E K
According to the prevention of food adulteration rules 1995,the percentage of milk, fat and SNF in different classes and designation of milk
10
specified respectively are as follow: Buffalo milk (5%-6% and 9%), cow milk (3%-4% and 8.5%) recombined milk (3% and 8.5%) double toned milk (1.5%9%) and skimmed milk (not more than 0.5% and 8.7%) the fat percentage for the milk of Cow and Buffalo varies from state to state and is detailed in DFA rules.
Milk Products :
Milk is the main product that is produced by the sudha. Milk acts as a raw material for the other products of sudha like curd, butter milk, paneer, etc. Sudha processes variety of milks such as whole milk, toned milk, cow milk, etc because the demand of milk are different from customer to customer sudha tries to fulfill all the demands, e.g. people who want Fat purchases sudha Gold milk , standardize milk is used for tea.
Types of milk
Name Whole Milk Toned Milk Cow Milk Skim Milk Standardize Milk Buffalo Milk
MILK
Cultured
Condensed
Precipitation
Year
1997.98
Quantity
72.12
12
Vijaya Sudha Amul Vita Him Nandiini Miima Aarey,Vikas, Mahanand Verka
HIPSCMPF Himachal Pradesh KMF Karnataka KCMMF Mahasangh Miikted Kerala Maharashtra Panjab
13
Madhya Pradesh Orissa Uttar Pradesh Rajasthan Tamil Nadu West Bangal
6 5 30 16 12 7
7 5 13 10 15 5
Procurement
14
The milk procurement due to sustained effort is showing growth year after year. The daily average milk procurement during 1994-95 average 114.33 thousand kg per day (TKPD) which has jumped more than five times 06-07 year to 598.28 TKPD. It has been possible due to action taken during past seven to eight years to change the trend of milk procurement are as below: Timely and regular payment to milk producers Attractive procurement price Induction of crossbreed cows in the DCS Regular supervision
15
Procurement of Milk
700
700
598.3
600
488.6
558.2
500
384.5 403.2
400
300
213.19
200
71.05
100
0
1987-88 1997-98 2002-03 2003-04 2004-05 2005-06 2006-07 2008-09
Qantity(in Lts)
In the current year 2010 milk procurement has crossed 800 TKGPD. Procurement will soon cross TKGPD.
Currently COMPFED is increasing the capacity of the plant due to increase in demand. The renovation work is in progress.
16
Products:
Milk
Sudha Gold Sudha Shakti Sudha Healthy Sudha Smart Sudha Lite Sudha Cow Milk
Milk Products
Ghee Ice-Cream Lassi Misti-dahi Peda Panner Kalakand Rasogulla Gulabjamun Plain-curd Ledikeni Balusahi
ORGANISATION
Head office
COMPFED
Bihar State Cooperative Milk Products Federation Ltd. Dairy Development Complex, PO-B.V. College, PATNA 8000014. BIHAR INDIA . compfed@sify.com ..
17
18
Chief Manager Asst. Manager Processing A/C Incharge Asst. Manager Procurement Asst. Manager Quality Management of Sudha Patna DairyBranch Manager Manager Marketing Operation Manager Manager Quality M.D Store & Procurement Department A/C manager : : : : : : : D.KSRIVASTAVA MR. NIRANJAN KUMAR MR. MUNINDRA PRASAD MR. SUSHIL KUMAR MR.SUDHIR KUMAR SINGH MR. KISHORE MR. BHANU PRATAP
Asst. Manager Mktg Engg. Incharge Asst. Manager Store / Vechile Incharge Security
These various departments and their incharge have staff, Technicians, officers, supervisors, workers and helpers to assist them and help in implementation of operations.
19
Sudha Milk
500/1000ml 500/1000ml 200gm/1kg 100/250g 100g 100g 200/500g 200ml 1kg 200ml 100g 500ml
Paneer Peda Sudha Special Misti Dhahi Fitness curd Lassi Gulab Jamun Flavors Milk Flavor Butter Ghee
Ice cream
20
Healthee Milk
Milk Fat Protein Lactose Potassium Calcium Zinc Iodine Sodium Phosphorus Vitamin-A Vitamin-B6 Vitamin-B12
Contains (gm)
31 36 48 1600 1350 4.6 17.5 600 1100 2701 0.7 7
21
Demand profile: Absolutely positive. Margins: Quite reasonable, even on packed liquid milk. Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to your product line. Availability of raw material: rich. Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years.
22
Weaknesses:
Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved. Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why cant we sell other dairy products too? Moreover, it is only a matter of time before we see the emergence of a cold chain linking the producer to the refrigerator at the consumers home! Competition: With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market is large enough for many to carve out their niche.
Opportunities: "Failure is never final, and success never ending. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of never ending successes! If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped:
Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition: o This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building.
23
Addition of cultured products like yoghurt and cheese lend further strength - both in terms of utilization of resources and presence in the market place. o A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunities. o Yet another aspect can be the addition of infant foods, geriatric foods and nutritional. Export potential: Efforts to use export potential are already on. Opportunities will increase tremendously for the export of agriproducts in general and dairy products in particular.
o
Threats: Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance.
24
25
MARKETING RESEARCH Definition of marketing research is approved by the board of the American Marketing Association (AMA) is: Marketing research is the functions which links the customer and public to marketer through information used to identity and define marketing opportunities and problems; generate define and evaluate, marketing actions, monitor marketing performance, and improve understanding of Marketing as a process. Simply, marketing research is the systematic design, collection, analysis and Reporting of the data findings relevant to a specific marketing situation facing the company. Careful planning through all stages of the research is a necessity. Objectivity in research is all- important. The heart of the scientific method is the objective gathering and analysis of the information. The function of marketing research within a company is to provide the Information and analytical inputs necessary for effective planning of future marketing activity control of marketing operations in the present and evaluation of marketing results. A research may undertake any of three types of research investigations depending upon the problem. These three types of research included.Basic research, Applied research and designated fact gathering.
26
PRIMARY DATA: - sources of primary data were customers, retailers & distributers.
The data has been collected through survey and observation. The survery method was used because it is most useful method to know the abailability of the Sudha brand against the others. The customers were chosen randomly for this purpose. For this purpose of study under survey method the structural interviews were conducted with the help of questionnaires. The separate questionnaires were designed for retailers and customers for asking question in a proper sequence. A part from this keen observation also helped in generating needful information.
27
Research design
Research design is simply the framework or plan for a study, which is used as a guide in collecting and analyzing the data. It is the blue print that I followed in completing a study. As objective of the research is descriptive in form, the research design must be made accordingly; Formulating objective of the study Designing the method of data collection Selecting the sample size Collection of data Analysis of data Conclusion and inferences Limitations Suggestions and recommendations.
DATA SOURCE
Data source
Primary Data Data collected through questionnaire By different people in different areas
28
Area of study
different parts of Patna Kankarbagh Mushallah pur Boring road Patna city Phulwari sharif Mahendru Patliputra colony Doctors colony Raja bajar Kajipur Customers age group between 18 -60 Patna convenience sampling was used, based on the willingness and availability of the
respondents. Sampling Frame: Sampling Technique: Sample Size: Time Frame: No specific frame Non-Probability sampling technique is used and Convenience sampling. 500 Respondents 15th MAY to 31 JULY
OBERVATION:- the respondents are observed by the research to collect data, study
the market conditions, know customers, retailers & distributers feedback and suggestions. Also note the behavior or any changes within the system. The observations may be done by interaction recording use or in this method the researcher does not in any way interact with the respondents the researcher simply watches.
29
6.1
30
INTERPRETATION- Out of 400 respondents 340 are regular milk users, 40 uses milk sometimes and 10 respondents are not milk user.
Brand Customers
Sudha 250
Raj 50
Amrit 20
Local 80
Interpretation- according to customers, sudha is the most preferred milk brand. Sudha is the first choice for of 250 out of 400 respondents. It means 62%of Patnities prefer Sudha milk. Sudha is followed by local milk vendors and it consist 20% market share. Rest 13% market share of raj and 5% of Amrit.
31
500 ml 102
1 ltr. 190
1.5 ltr. 78
2ltr. Or more 30
Interpretation- out of 400 respondents 47% customers purchase 1 ltr. Sudha milk daily, 25% customers purchase 500 ml, 20% customers purchase 1.5 ltr. And only 8% customer purchase 2 ltr. Or more sudha milk daily.
32
Total
400
Interpretation- In the Patna city 66% customers prefer 1 ltr. Size and 34% prefer 500 ml size.
33
157 60 400
Interpretation- 46% customers purchase milk in the morning time and 39%customers purchase milk in the evening time while 15% customers purchase milk at both time.
34
No. of customer 30 70 50 80
Interpretation- only 30% customer influenced by the radio advertisement, 35% customers attracted by ooh advertisement, 22% by print and 13% by tv advertisement.
35
6.7 Measuring the taste, price, quality, brand name, packaging, image, availability and advertisement.
Parameters Taste Price Quality Brand Packaging Image Quantity Availability Advertisemen t
None 27 30 5 45 15 25 20 15 55
Total 400 400 400 400 400 400 400 400 400
36
Interpretation- From the above chart it is clear that taste, quality and availability is the very important factor while packaging and brand name & image also important and price and quantity having normal affect in purchase decision.
Actions Postpone the purchase Switch to other brand Search on other shop
37
Interpretation-61% customers search on other shop, 21% postpone the purchase and 18% will purchase other brand.
6.9 If new brand will come in market then will the customer shift to the new brand?
Behaviour Not at all May consider No. shall not Cant say
38
Interpretation- 50% customers say they will not shift at all, 21% may consider, !4% customer are not sure and 15% says cannot say.
39
40
41
42
43
Interpretation 59% customers says that no. of shops are not sufficient and need to increase.
44
Interpretation- 64% customers says that the packaging of sudha milk is easy to use.
Choice Yes No
45
46
47
Interpretation- 86% customer are overall satisfied with the standard of sudha milk.
North 5366
South 2978
East 3135
West 4133
From the above analysis we can see: In North direction purchase quantity is more than South, East & West. In South direction purchase quantity is nearly half of North. In East direction also figures are not far behind North. Therefore much focus is required to create demand & market in East & South direction. Because purchase quantity of Retailers is directly linked with sales. If purchase quantity of retailers is more than sales is more. If it decreases sales also decreases.
48
0-2 0
2-4 5
4-6 25
Above 6 70
The above analysis is done to know since how long are the retailers work with sudha. From the above analysis it is good to see that out of 100 retailers 70 retailers are very old. But in the last 2 yrs. No any new retailers are joined , which is not satisfactory.
49
No.of response 85 15
No. of response 25 5 55 15
50
Interpretation According to retailers sudha shakti is more in demand and it is followed by sudha gold.
51
Interpretation- 70% retailers says that mostly demanded size is 1 ltr. And 30% retailers says that 500 ml size is more in demand. 6.24 Which freeze does retailer use,
General freeze 00
Interpretation- In the patna city all the retailers using deep freeze for preserve the milk.
Satisfaction Yes No
No. of response 75 25
52
Interpretation- out of 100, 75 retailers are satisfied while 25 retailers need more margin and better service.
No. of response 15 15 10 60
53
Interpretation- most of the retailer choose that particular brand because the demand of the milk of this brand is high in the market.
No. of response 15 60 15 10
54
Interpretation- As per retailers the current distribution is good but need some useful changing to make it best.
Choice Yes No
No. of response 80 20
55
Interpretation- 80% of retailers are satisfied while 20% wants there should be some credit facility.
Milk Sales
16 14 12 10 8 6 4 2 0
8 19 99 -00 20 01 -02 20 02 -03 20 03 -04 20 04 -05 20 05 -06 20 06 -07 20 07 -08 20 08 -09 19 97 -9
Sales(in Lakhs)
56
Years 1999-00 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Sales (in Lakhs) 3.95 5.18 5.88 6.57 6.57 8.48 12.83 12.58 15.18
% Increase or Decrease 68.39 31.14 13.42 11.68 .10 29.05 51.22 -1.95 20.64
This analysis is done to know the milk sales of Sudha Patna Dairy of the past 10 years. Given table and chart (Figure) shows the milk sales of Sudha Patna Dairy of the last 10 years. In the year 97-98 milk sales was 2.34 Lakh, and in 08-09 sales figure reached 15.18 lakh. From then till now avg. growth rate is about 255. In the year 1999-00 Sudha Patna had its best increase in sales. Year 06-07 also had very good sales. In the year 07-08 sales decrease by -1.95%. Latter in the year 08-09 sales improved and showed increase by 20%.
57
Year
1997-98 1999-00 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
% Increase or decrease
63.36 27.34 10.32 8.62 -2.56 25.7 47.39 -4.61 17.74
This analysis is done to know the quantity of milk supply of Sudha Patna Dairy in the past 10 years. Given table and chart shows the quantity of milk supply of Sudha Patna Dairy in the past 10 years.
58
In the year 97-98 milk supply was 14,440 Lts, and in 08-09 sales figure reached 73,000 Lts. From then till now avg. growth rate is about 21.5%. In the year 1999-00 Sudha Patna had its best growth rate ever in supply i.e. 63.36%. Year 06-07 also had very good supply growth. In the year 04-05 & 07-08 sales decreased by -2.56% & -4.61% respectively. Latter in the year 08-09 supply has improved with respect to last supply.
6.32 Analyzing the Marketing Strategy. Marketing is a business term referring to the promotion of products, especially
advertising and branding. The term development from the original meaning which referred literally to going to market, as in shopping, or going to a market to sell ones products. The American Marketing Association (AMA) states, Marketing is an organizational function and set of processes for creating, communicating and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stakeholders. Marketing practice tends to be seen as a creative industry, which includes advertising, distribution and selling. It is also concerned with anticipating the customers future needs and wants, which are often discovered through market research. Following are the Marketing Strategies of Sudha Patna Dairy to influence sales & customers: 1. Increase production Looking at the huge demand of milk in Patna city. Sudha Patna Dairy is working to increase its production capacity from 60,000Lts to 1 Lakh. 2. Advertisements Category 1 Wall Painting. Booth Painting Shop Painting. Vehicle Painting
59
Category 2 Retail sign Boards. Banners. Pamplets. Handbills. Hoardings. Category 3 Pouch Advertisement.
3. 4. 5. 6. 7. 8. 9.
Sponsoring Competition. Participating in Trade Fair. Timely Supply. New Booth. Incentives on Sales of Milk. New Area Exploring. Channel Partner Meeting.
It is good to see that Sudha Patna Dairy has very good brand. People believe that sudha products are far better than its competitors. Lets see few of such result: (a) Brand-wise Sudha Patna Dairy is very good. (b) In Advertisement, following is the result-
Customers Feedback PARAMETERS Excellent Very Good ADVERTISEMENT 20 80 Good Fair Poor Total 49 131 120 400
60
Retailers Feedback Parameter Excellent Very Good Advertisement 0 8 Good 20 Fair 10 Poor 62 Total 100
The above figure clearly say that Advertisement of Sudha is Poor. We already discussed that according to customers advertisement is an important part.
(c) One of the Sudha marketing Strategy is Hoarding. There are a number of Sudha retailers without any hoarding, banner or sign board. (d) Another way of Marketing is new area exploring for new Booths. There are a number of good and profitable locations where there is no Sudha Patna Dairy Booth. (e) Sudha Patna Dairy also has incentive to promote sales. Incentive is one of the best tools though which one can increase sales and encourage the channel partners to do their best But no incentive to promote was given.
61
CHAPTER 7: FINDINGS
7.1 Finding from the customers.
Survey size of customers was 400. it includes feedback from all for directions North south east and west .we got lot of feedback which were common and Few also which had to be focused. a) According to customers, Sudha is the most preferred milk brand. Sudha is the first choice of 325 out of 400 customers. It means 81% of Patna cities prefer Sudha milk brand.
b) Customer prefer or purchase mostly in morning. And evening purchase is nearly half of the evening purchase. c) 62% of the customers purchase 1It pack vs. 38% of the customers purchase 500ml pack. Therefore the demand for 1It pack is more than 500ml in patna city. According to this analysis hoardings influences the customers most while Purchasing. From the analysis following was services of Sudha Patna Dairy as per customers. Here none of the services was found Excellent. BRAND and IMAGE of Sudha is found Very Good. TASTE, QUALITY, PACKAGING,AVAILABILITY & OVERALL SERVICES was given Good by the customers. PRICE of Sudha was given Fair. ADVERTISEMENT was given Poor by the customers.
d) e)
f) In this analysis it is found that customers are loyal, but need to be cautious so that customers may not shift to other brand in future. g) 59% customers said Sudha milk is good for health.
62
63
CHAPTER 8: LIMITATION
There is also some touch of approximation in its nature. Due to this some inherent limitations are characterized as:
There was time constraint since this survey has to be completed in a limited time period. With large population covering Patna locality, the sample size is no so perfect to give an accurate solution. The survey was limited to big market only become shorter time period. There is a chance of biasness in the figures and may be false information given by the customers. We have to rely on the information provided and its accuracy cannot be judged. Some people hesitate to give answer.
64
CHAPTER 9: SUGGESTIONS
9.1 Suggestion.
This section is one of the important area of this project. This is the resultant of the project as suggestions. Sudha need to maintain and protect its brand. From not only from competitor but also from the poor performance of its other product i.e. Sudha paneer. Supply is not at all consistent. Management need to know and control whether the supply is consistent or not. They need to know with evidence. Advertisement of Sudha is not at all satisfactory. 72% of the customers have said that Sudha Patna Dairy Advertisement is not good. 75% of Patna citizens have said that Advertisement influence them to buy. Therefore Advertisement should be such that it could catch masses. Sudha milk price should be consistent. And should increase with at acceptable rate. It should not increase by a large margin. In price fluctuation Sudha has been given poor by the customers and the retailers both. Milk quality is not consistent. Sudha is a brand and people rely on it. Quality must be strictly measured and followed each and every day. Packaging is not excellent, very good but average. If Sudha Patna Dairy is best in the market then packaging should also be best. It is one of the source of marketing also. If packaging is average then how will the customer take that pouch at home. And leakage pouch are not returned. Here, it will also be a headache for retailers. Sometime their should be a training program or meet to train retailers, and distributors how they can carry out their work afficiently and earn more. Lack of availability. It may be due to short supply or late supply. And it can be also when Sudha Retailers are at distant. It is important to scan the market and allot retailers. It will increase revenue and increase sales and satisfy customers. There are a large no. of customers said that they may shift to new brand if other offer good quality. Therefore this should be taken care off. A organization, or a company is known only by its quality of service and product. Therefore their should be no compromise with product standards and services. For better service Sudha patna Dairy can have its own toll-free number. Sudha Dairy booths are now old designed very few of them are decorated in a new look and some of the booth are in very poor condition. Sudha Patna should modified all the booths asap.
65
Awareness program between staff and distributor related with milk quality: - Some lack of awareness about milk quality such as how much
temperature good for milk between the customer, staff and distributor. Thats reason milk quality and distribution system too much affected. So remove this problem sometimes organize the awareness program between the staff and distributor.
Delivery timing should be accurate and must be noted by the retailers: - For optimizing the distribution system the delivery timing of milk
should be excellent, and timing for delivery of milk should be noted.
Take initiative action just like distributorship award and incentive time to time: - Zeal without action is the runway horse, this
proverb proves zeal is important factor for development in any sector so takes initiative action for increasing zeal between the distributor and give incentive time to time for increasing enthusiasm between the distributors. Proper dress up for distribution staffs: - Discipline express depth of the character, so dress code is important in organization for good image between the people and market so apply the dress code for distribution staff. Commission should increase according to intervals and period: Commission should be increase according to sales and demand of the milk increase. All member of the organization like a family so focus on each and every member of the organization.
66
a) Big & Large Hoarding on busy Streets: As citizens of Patna do not know about Sudha advertisements. And they had told that advertisement influence them to buy. Therefore instead of having number of banners and hoardings across the city, Initially Sudha Patna Dairy should have at least 4-5 big and large hoarding on busy street (Chowks). It will not only encourage increase sales, but also it will create new Sudha customers and also make Brand image among people. b) Awareness Programs : Majority of Patna citizens who do not take pouch milk, belier that pouch milk are pure and good for health. Therefore it is only awareness program that can help people to increase knowledge about Sudha milk. It not will only help customers but will also help Sudha Patna Dairy to increase sales and make new customers. It is not important that it should be done on regular basis for better result otherwise not. c) Exploring new locations for Sudha patna Dairy booth: Still there are good and profitable location where there is no Sudha Patna Dairy booth. To increase sales this area has to be taken care off. Otherwise those areas will give chance to other dairy to grow their business. This will not only increase Milk sales but also sales of other product. d) Incentives: incentives for the Retailer & the Distributors to push up sales. Such schemes should be made under which they increase sales to get some benefits. It will not only increase will but also improve work quality. Here the aim of retailers & distributor will become Increase the sales. And finally it will add to Sudha Patna Dairy growth. e) C.C. Method Care & Control method: Care your retailers & Customers & Distributor. For this: Every moth executive with to know the real market conditions. It also show and make a feel the Sudha really cares them, it is a kind of concern to be made and collect information.
67
Tool-Free number can also help to care, run & get information and orders. And control over Marketing Executive, Retailers, Distributors, Customer, quality and even market.
For this, A surprise visit by a senior management every twice a month can really make a difference. Marketing Executives and Toll-Free number can also be helpful in controlling. Strict actions against any faulty and discipline can also help to control. Any schemes/Strategy/Policy/Quality of delivered milk must be measured from time to time. Control over this can save extra expenditure and strength the system. This way CC Method can help no only to increase sales but also improve & strength system and also make brand image. f) Radio Advertisement: Today it is one of the best source of Advertisement to influence local people. Having MOU with FM channels can help to reach and influence masses. Every week cinema context. o 2 free cinema ticket every week. o Context should be regarding health care and relationship: Answer 1simple question and to win free cinema tickets. o Health related questions for awareness & relationship questions to make firm relationship with customers. This will add to popularity of sudha Patna Dairy everywhere. Help in building strong brand. And influence & attract new customers. And finally increase sales. g) Target Marketing: Specially in Festivals Tap the market in Festivals To increase sales, advertise in advance through board or newspaper to create more and more demand and dependability. Fulfill retailers demand during festivals. This will increase sales, make good image and increase reliability of customers and retailers. h) Cold Coffee: It is an excellent drink with normal cost and excellent returns. This drink has been tremendously successful in big and growing cities. This suggestion is to increase sales of Sudha Milk and increase sales and profit of the retailers. This suggestion is for Sudha Booth to have a mixer. And sell Cold Coffee. Selling Price per glass of Cold Coffee can be Rs. 10-Rs.12. Cost price per glass is approx. Rs.7. 68
This will give profit is daily sales of 30-50 glass. Then the profit is nearly
No. of glass
30 50
I.e. daily profit of Rs. 90- Rs. 150- Rs.250 I.e. even if we take Rs. 90 as daily profit then monthly it becomes Rs. 2700. Therefore minimum extra income of Rs.2700
This will increase income of Sudha booth; Make Retailers happy; And also increase Sudha Milk Sales. It is expected that from Cold Coffee business in Patna city. It can created demand of nearly 8000-Lts. a day in the coming months. i) Sudha Boy & Sudha Girl Contest: It can be conducted in Patna city every year. Sudha can arrange quiz contest. And award children with certificates. And 2 best child with a gift or token of money. Best thing is that Sudha Patna Dairy need not have to spend money for it instead gain confidence of people, youth, popularity in media. Entry or Registration fee of Rs. 20 And with the help of 10 sponsors (Sponsorship charge Rs. 500-Rs.100) Sudha Patna Dairy can arrange a minimum amount of Rs. 4600. It will make brand even more stronger. It will increase faith in sudha Milk and other brands. Will attract new customers. And increase sales. j) Monthly Scheme Under Monthly Scheme Sudha Patna Dairy can give 50 paisa discount on every 1lt of purchase. Scheme should be applicable on 1lt pouch only Advance payment should be their for this scheme. This advance payment can help Sudha to expand its business. Even if the money is kept in bank for a month then it gives nearly 3.4 4 % interest. But for this scheme distribution and supply should be excellent. This will increase sales. This will also capture the customers and prevent them from taking other milk. k) Home Delivery This another tool to not only increase sales but also to tap customers from going to any other brand. Even many customers have suggested for home delivery. But before giving this service it needs to be properly designed.
69
The above marketing Strategies are designed such that it will not only increase sales but also make Sudha Patna Brand Stronger.
2)WHICH MILK DO YOU BUY? a) SUDHA b) RAJ c) AMRIT d) LOCAL 3) HOW MUCH MILK DO YOU PURCHASE DAILY? Ltr. 4) WHICH PACK DO YOU PURCHASE? a) 200 ml. b) 500 ml. c) 1 ltr. 5) WHEN DO YOU PURCHASE? a) MORNING b) EVENING c) BOTH 6) WHICH MEDIUM OF ADVERTISEMENT APPEALS YOU THE MOST? a) T.V b) RADIO c) PRINT d) HORDINGS 7) How much importance you give to the following factors when you purchase milk? Tick mark. Very important Taste Price Quality Brand Packaging Image Quantity Availability Advertisement 8) WHEN SUDHA MILK IS NOT AVAILABLE THEN a) POSTPONE PURCHASE c) SEARCH ON OTHER SHOP b) SWITCH TO OTHER BRAND d) Important Normal Least important None
70
9) IF NEW BRAND COMES THEN IN SUCH CASE WILL YOU SHIFT TO THE NEW BRAND? Pls TICK. a) NOT AT ALL b) MAY CONSIDER c) NO, SHALL NOT d) CANT SAY 10) IS SUDHA MILK GOOD FOR HEALTH? a) YES b) NO c) SOME WHAT 11) DO YOU LIKE THE TASTE OF SUDHA PRODUCTS? a) YES b) NO c) SOME WHAT 12) HOW DO YOU PREFER TO CONSUME MILK? a) IN TEA b) MILK C) OTHER 13) IS THE PRICE FAIR? a) YES b) NO c) SOME WHAT 14) NUMBER OF RETAIL SHOPS IS SUFFICIENT? a) YES b) NO c) SOME WHAT 15) ARE YOU SATISFIED WITH THE PACKAGING OF SUDHA (THEY ARE EASY TO USE)? a) YES b) NO c) SOME WHAT 16) WHICH OTHER SUDHA PRODUCTS DO YOU USE? Pls.TICK. a) PEDA b) LASSI c) PANEER d) ICE CREAM e) GHEE f) RASOGULLA g) KALAKAND h) CURD 17) ARE YOU AWARE ABOUT THESE NEW PRODUCTS? a) GOLD ICECREAM b) MANGO LASSI c) CALCI MILK d) TAZA CURD 18) ARE YOU SATISFIED WITH THE STANDARD / QUALITY OF SUDHA PRODUCTS? a) YES b) NO c) SOME WHAT ANY SUGGESTION
THANK YOU
NAME:LOCATION:CODE No.
71
1) PURCHASE QUANTITY .Ltr. 2) RELATION WITH SUDHA a)0-2 Yrs> Yrs. b)2-4 Yrs. C) 4-6Yrs. D) ABOVE 6
3) HOW MUCH DO YOU SELL DAILY Ltr. 4) WHICH SUDHA MILKMIS MORE IN DEMAND? a) GOLD b)CALCI MILK c) SHAKTI d) HEALTHY e) f) 5) WHICH SIZE IS MORE IN DEMAND? a) 200 ml. b) 500ml. c) 1 ltr. 6) WHICH FREEZE DO YOU USE AND ITS CAPACITY? a) DEEP FREEZER b) GENERAL FREEZER CAPACITY 7) ARE YOU SATISFIED WITH THE CURRENT MARGIN AND SERRVICES ON THIS BRAND? a) YES b) NO 8) WHY DO YOU PREFER TO SELL THIS PARTICULAR BRAND? BECAUSE OF ITS a)QUALITY b)MARGIN c)SERVICE d) HIGH DEMAND 9) HOW WAS DISTRIBUTION a) EXCELLENT b) GOOD c) AVERAGE d) POOR 10) ARE YOU SATISFIED WITH THE PAYMENT SYSTEM? a)YES b) NO
10.3 Bibliography We hereby and acknowledge the following sources From which material been drawn in preparing the project:www.compfed.com.in, www.dairy industry.co.in. etc.
72
73