ORGANISATIONAL STUDY

OF

MITHILA DUGDH UTPADAK SAHKARI SANGH LTD

Submitted in partial fulfillment of the requirements of

The M. B. A. Degree Course of Bangalore University

Submitted By
Priyadarshi Kundan
Under The Guidance Supervision
OF

P.K.Sinha Mr. B.Srinivasion

(Incharge (Mktg)- Professor, MPBIM
cum Assistant Manager) (Internal Guide)
(External Guide)

M. P. BIRLA INSTITUTE OF MANAGEMENT

Associate Bharatiya Vidya Bhavan
# 43 Race Course Road, Bangalore-560001
2006-08
 Executive Summary
The training at MITHILA DUGDH UTPADAK SAHKARI SANGH LTD (SUDHA) IN
SAMASTIPUR helped us gain the practical experience and the study conducted by me

centers around the importance and position of different dairy industries.

A thriving dairy sector is of vital importance to every person specially farmers.

It provides milk, Ghee, Cheese other products to every person.
It provides a source of income to rural and urban enterprises and productive individuals
and also a way for the farmers to make their living standard high.

During my summer training in MITHILA DUGDH UTPADAK SAHKARI SANGH LTD

(SUDHA),the basic focus of my training was on comparative analysis of pouched liquid

milk of SUDHA. Under this project I had to find out the different players carrying on
business of liquid milk in Samastipur and also their market share in the same region.
After that we had to make comparative analysis so that we can recommend suggestion to
the MITHILA DUGDH UTPADAK SAHKARI SANGH LTD (SUDHA) to increase its share in
the market in Samastipur.

The training was quite a comprehensive one in itself, it helped us to have the knowledge
in the following:-
 Declaration

I Priyadarshi Kundan do hereby declare that the ORGANISATIONAL

STUDY IN MITHILA DUGDH UTPADAK SAHKARI SANGH LTD. has been accomplished by
me under the eminent guidance of Prof.B.Srivinasion,Faculty, M.P. Birla Institute of
Management, Bangalore.

I submit this report in partial fulfillment of the requirements for the awarding of
Master of Business Administration degree of Bangalore University during the
academic year 2006-2008, and not for the award of any degree of another University
or Institute.

Place: Bangalore. Priyadarshi Kundan

Date:
 PRINCIPAL.S CERTIFICATE

This is to certify that the internship report titled .”ORGANIZATION

STUDY”. MITHILA DUGDH UTPADAK SAHKARI SANGH LTD, SAMASTIPUR
has been prepared by Mr. Priyadarshi Kundan , under my guidance. This has not
formed a basisfor the award of any Degree/ Diploma by Bangalore University or
anyother university.

Place: Bangalore Mr. Nagesh Malavalli

Date: (Principal)
 GUIDE.S CERTIFICATE

This is to certify that the internship report titled .ORGANIZATION

STUDY. MITHILA DUGDH UTPADAK SAHKARI SANGH LTD, SAMASTIPUR
has been prepared by Mr. Priyadarshi Kundan , under my guidance. This has not
formed a basisfor the award of any Degree/ Diploma by Bangalore University or
anyother university.

Place: Bangalore Mr. B.Srinivasion

Date: (Project Guide)
 PREFACE

I feel my selves very grateful that we have got an opportunity to do the summer training in
SUDHA where the management and working culture are quite excellent. It gives us immense
pleasure to have successfully undergone training in the FMCG sector, which is the upcoming
sector in the industry. This training was quite a comprehensive one in itself, it helped us have
the first hand experience in: -

• Identification
• Data collection
• Analysis
• Recommendation/Suggestion

Identification-It is the process of defining the marketing problem and marketing research
problem

Data collection and management- it mainly involved maintaining a list of prospects with
details and classifying on certain basis thus providing the required database.

Analysis-.It is the process of editing, tabulating, and interpreting the data so that
recommendation for action can be effectively made.

Recommendation- It is the last step which involves the feedback, and suggestion for the
project
 ACKNOWLEDGEMENT

I am privileged that I have successfully completed my training with the highly acclaimed
organization- MITHILA DUGDH UTPADAK SAHKARI SANGH LTD, SAMASTIPUR

I am indebted to Mr.P.K.Sinha (Asst..Manager),Mr. Ashok Kumar Singh and

Mr.C.B.Mishra (Administration), my project guide under whose guidance I was able to
take the initial steps into the corporate world and also have the experience of the market.
Their selfless service has made this journey quite interesting and a feeling to go a long
way.

Their training and guidance, support and inspirations, and the brand name of SUDHA
were quite effective in helping me to successfully complete the project .

The talented and experienced staff in the field job of MITHILA DUGDH UTPADAK
SAHKARI SANGH LTD (SUDHA) IN SAMASTIPUR

All Staff in Sudha Dairy subordinates deserve praise for imparting information necessary
for the project and helped me for completing the training successfully.

Special thanks to other batch mates who were cooperative all through the training and
also to my parents who gave me the much needed encouragement to go on.
 INTRODUCTION

Milk is the nutrient-rich liquid secreted by the mammary glands of female mammals .
The female ability to produce milk is one of the defining characteristics of mammals. It
provides the primary source of nutrition for newborns before they are able to digest
other types of food. The early lactation milk is known as colostrums, and carries the
mother's antibodies to the baby. It can reduce the risk of many diseases in the baby.
 Contents
1. Executive Summary
2Objective of the Study
3 Scope of Study
4 Limitation of Study
5 Methodology
6 Introduction to the problem
7 Hiostory of Mithla diary
8 Department & their Executives
9 History of Comfed
10 Background
11 Area of Operation
12 Physical performance
13 Marketing of Milk & Milk products
14 Process infrastructure
15 Milk procurment of Mithla Milk Diary
16 Graph
17 Milk marketing at Samastipur town
18 Marketing of Mithla Dugdh utpadak Sakari Sangh ltd Samastipur
19 Graph
20 Demand and its variations
21 Distribution system at Samastipur Diary
22 Products profile
23 Distribution Strategy
24 Process flow chart of milk
25 Consumer behavior
26 Data analysis of Consumer behavior
27 Platform : Test of milk
28 Research Methodology
29 Conclusion
30 Suggestion
31 Questionaire
 Objective of the Study

Objective of Internship Training:-

To know the organization structure of the company.

To know functions of various department .

To understand the work culture.

To help student to develop necessary interpersonal and managerial

Skills.

To gain well rounded view of Management operations.

To gain first hand experience from industry.

To make assessment of the organization in the industry.

MITHILA DUGDH UTPADAK SAHKARI SANGH LTD.

 Scope of the study

The scope is limited to the extent of the place, time, organization

and their information collected during the project. It is done as a part of
academic study. The scope o f the study limited to information supplied by
the Department Head and information collected by standing order and
settlement copies of the company.
The information collected is limited to the academic knowledge
gained by the student during the study of the course.
MITHILA DUGDH UTPADAK SAHKARI SANGH LTD.
 Limitation of the Study

The study is not proposed to be an expert study as it was done by a

student for the purpose of a partial fulfillment of the course in the in plant
training, which is an integral part, in completion and reward of MBA.
The Study was conducted in a short period of six weeks, and so the
finding cannot be generalized for all times.
Some of the information's being confidential was not included in the
study.
The scope of the study by and large is very vast. It is difficult to
satisfy all the areas; therefore an attempt is made to cover as much as
possible.
MITHILA DUGDH UTPADAK SAHKARI SANGH LTD.
 Methodology

The data colleted for this report is as follows:

Primary data
Secondary data
Primary data:
The primary data is collected through:
1. Personal observation.
2. Interview with:
• Consumers
• Marketing Department
• Account Department
• Procurement Department

Secondary data:
The secondary data has been collected with reference to various records of
the company, Such as:
1. Website: www.compfed.co.in
2. Files
 AN INTRODUCTION TO THE PROBLEM

Now a days most sensitive problem is better solution of problem in the world of
marketing management consumer wants better solution of any problem. Benefits and
satisfaction the consumer are getting from goods manufacturing to service generation
since the concept of marketing management has changed and now it becomes as
consumer oriented. The marketing managers are suppose to perform multidimensional
responsibility. Must of the company tries to develop the technology to improve there
products and services to satisfied the customer. To satisfy the consumer demand by
supplying the right product to right place and on the right time.

By globalisation and information revaluation where free trade is imposed in

all over the world. For any company to service in the market its distribution channel
should be storng. If the distribution channel of any organization would be sound than
only it can be complete with its competitors.

As for this particular organization is concern it produces milk and milk

products which are so perishable in nature. So much products requires minimum time
reach in the hands of customers beginning from their manufacturing.

So managing sound distribution network is always a crucial job of

marketing manager of the concern organization. Because it is the time factor that counts
the effectiveness of the manager. Overall distribution strategy involves two things:-

I. Decision regarding physical movement of goods.

II . Decision regarding route of channel of distribution.

But before the decision regarding physical movement of goods it is

necessary to decide the route through which the products will move. The longer the
distribution channel the more time and money will be invested. So managing an
appropriate sound distribution channel is always an important job of marketing manager.

As a student of marketing management I have also tried to understand the

mechanism of distribution channel of Samastipur Dairy. After getting an opportunity to
apply my theoretical knowledge to the real situation in the Samastipur Dairy ( a unit of
Mithila Milk Utapadak Sahkari sangh Ltd.)
 During my study I studied the overall marketing practices but specially in
the light of Distribution Network and Consumer Behaviour.

HISTORY OF MITHILA DAIRY

Sudha dairy , Samastipur is the dairy that suffices the milk requirement of the city and
also near by Villages. Samastipur dairy is a main unit of Mithila Dugdh Utpadak Sahkari
Sangh Ltd.

Samastipur Dairy is an ISO 900 – 2000 Co – operative dairy. It is

situated in Harpur Alwth, Industrial Area Samastipur. All dairies in the state taken over
by the Bihar State Co-operative milk producers fedration Ltd(COMFED) in 1983-84
Initially this dairy started a small milk chilling center at Tajpur in 1978 with a handling
capacity of 10000 LPD. In 1994 it becomes full fledged Dairy at the industrial area
Harpur Alowth, Samastipur . The Mithila Milk Union Comprising the saves milk shed
with its area of operation covering Samastipur, Darbhanga and Madhubani districts care
into existence on 14th September 1987. Under the operation “FLOOD” programme of
Govt of India . This dairy was registered by the Bihar State Co-operative Societies Act
1935 as Mithila Dugdh Utpadak Sahkari Sangh Ltd. At present approx 160000 LPD of
milk is processed in the Samastipur Dairy . Mithila Dugdh Utpadak Sahkari Sangh Ltd
today manage the milk chilling center at Rosera (10000 LPD) and the packing station
cum chilling center at Darbhanga (20000 LPD). The union is managed by an elected
board of directors and the 11 farmer members belonging to the DCS at village level. The
union is comprises of 700 samiti now.

Now dairy is arranging milk collection at village level and paying

remunerative price on the basis of quantity and quality (as% kg SNF / FAT), enhancing
milk production by supplying of balance cattle feed and fodder seeds, mineral mixtures ,
ca etc to the door – steps of the farmers daily on no loss – no profit basis through the milk
transport vehicles.

At present Samastipur Dairy Selecting appropriate cost effective

and eco- friendly process and technology , producing high quality products and safe food
and delighting its customers.
DEPARTMENT AND THERE EXECUITIVES IN SAMASTIPUR DAIRY

Account Section:

Accountant – Sri Manadeo Ram

Administration – Sri C.B.Mishra

Marketing – Sri P.K.Sinha

Store – Sri B.K.Singh

Procurement – (I)-Sri Ganauri Prasad

(II)-Sri V.K.Jha

A.I.Store – Smt. Pratibha Kumari

Feed (Sudha) for Cattle. (Store) (from Ranchi) – Sri

B.K.Singh
Plant – Md. Zamiruddin

Quality Control – Mr. P.K. Sinha cum Lab

Engineering – Sri Sanjay Prasad

HISTORY OF COMFED

1 Backgorund
2 Area of Operation
3 Physical Performance
4 Marketing
A . Liquid Milk Marketing
B . Milk Products Marketing
5 Processing Infrastructure
 HISTORY OF COMPFED
( BIHAR STATE CO-OPERATIVE MILK PRODUCERS’ FEDERATION LTD.)

1 Background

The Bihar State Co-operative Milk Producers’ Federation Ltd.

(COMPFED) came into existence in 1983 as the implementing agency of
Operation Flood (OF) programme of dairy development on Anand pattern in
the State. All the operation or erstwhile Bihar State Dairy Cooperation were
handed over to COMPFED.

2 Area of operation

Five-district level Milk Producers’ Coop. Unions affiliated to the

Milk Federation were covering eighteen districts till the end of Programme
in March 1997 (end of Eighth Plan). Number of districts being covered by
unions at present has risen to twenty four and in addition, five districts are
being covered by the Federation. Further work is being initiated in six
districts more.

Different milk unions, which are organizing the DCS network in these
districts, are listed below:
i. Vaishal Patliputra Milk Union, Patna - Patna, Vaishali, Nalanda, Saran
and Siwan districts.
ii. Barauni Milk Union, Barauni - Begusarai, Khagaria, Lakhisarai,
Shekhpura and some villages of
Munger and Saharsa districts.
iii. Tirhut Milk Union, Muzaffarpur - Muzaffarpur, Sitamarhi,
Sheohar, E. Champaran and
W. Champaran districts.
iv. Shahabad Milk Union, Arrah - Bhojpur, Buxar, Kaimur and
Rohtas districts.
v. Mithila Milk Union, Samastipur - Samastipur, Darbhanga and
Madhubani districts.

The Milk Federation has already taken up organization of Dairy

Cooperative Societies (DCS) in the districts of Gaya, Jehanabad, Bhagalpur
and GOI has approved a proposal for dairy development in Supaul,
Madhepura and Saharsha districts.

The districts of East and West Singhbhum, Ranchi, Bokaro and Dhanbad are
being covered by the dairies directly under the control of Milk Federation
for the supply of milk and milk products to the urban consumers in these
cities. Procurement of milk has been taken up in Ranchi district only.

3 Physical Performance

Because of initial teething troubles and the set back caused by

the natural vagaries, the progress was impeded. Regaining of confidence of
the milk producers in the cooperative dairying system shattered due to poor
management by erstwhile Bihar State Cooperation earlier was also of one of
the major reasons for sluggish growth. Lack of functional infrastructure in
the sphere of animal husbandry, especially in breed improvement, artifical
insemination (AI) and animal health cover also contributed to the torpid
progress.

Policy decisions taken six to seven years ago have changed the
trend of growth in all quarter’s of cooperative dairying in Bihar. In the
earlier years, the emphasis was on the horizontal of dairy cooperative
network. Now the strengthening / consolidation of the dairy cooperatives is
being done to make them viable and gradual expansion of area is also being
done. Achievements under different activities are summarized in the
following pages.
4 Marketing
A. Liquid Milk Marketing

In the initial years, the emphasis of Compfed was on organising DCS

and educating farmers. In the initial years the milk sale moved at snail's speed
from Later, marketing was given a boost by considering it a thrust area.About five
to 100.55 thousand litres per day in 1987 to 106.54 thousand litres per day (TLPD)
in 1992-93. However, stratgegies adopted in 1993-94, changed the trend
completely. Year 2003 was declared as "Market Development Year". The daily
average milk marketing has now reaced a level of about 531 TLPD showing a
continued increase which is depicted below.

Milk Union/Unit 1987-88 1997-98 2002-03 2004-05 2005-06 2006-07*

Patna 31.54 68.84 89.77 102.68 115.27 125.71
Jamshedpur 21.91 53.41 67.85 75.01 81.52 88.00
Ranchi 7.09 30.02 44.17 52.83 58.55 64.67
Bokaro 10.84 26.26 36.79 45.71 50.59 52.29
Muzaffarpur 22.91 27.49 49.58 53.81 53.20 55.42
Gaya 3.88 6.78 11.12 13.56 13.45 15.55
Bhagalpur - 3.75 6.89 6.77 7.44 8.51
Barauni 2.47 6.85 17.27 51.29 47.34 47.86
Samastipur - 21.55 42.98 52.00 56.19 54.79
Shahabad - 0.04 12.72 13.27 12.85 14.73
Total 100.55 245.02 379.13 466.86 496.40 530.53
*Till Jan 2007.

Marketing of milk and milk products is being in about 80 to 85

towns / cities through 5197 (393) outlits in Bihar / Jharkhand / West Bengal.
It is being marketed in areas as far as Guwahati and Calcutta besides in cities
like Varanasi and Siliguri.

In order to boost the sale of liquid milk, the daries adopted the
following strategies:-

i. Continual improvement in the quality of milk. It was

achieved as a result of taking up taking up Dairy Plant
Management (DPM) and Quality Assurance Programme
(QAP) by all the dairies with technical and kfinancial
 assistance from NDDB / Compfed. Nine out of ten dairies of
Compfed, namely, Patna, Muzffarpur, Ranchi, Bakaro, Gaya,
Bhagalpur, Jamshedpur, Barauni and Samastipur dairy have
already been accredited with ISO : 9001:2000 and HACCP :
ISO and HACCP certification.

Bihar is one of the few States in the country which has been
permitted by the National Dairy Development Board to use
the “Mnemonic” symbol on the confirming the quality
standards fixed by NDDB.

ii. Reaching close to the consumers by expanding the retail

network and establishing new whole day milk booths.
Strengthening of door-delivery system.

iii. Strengthening of marketing teams by inducting professionals

and better supervision.

iv. Service to retailers and redressal of consumer complaints.

v. Liberalising the terms for appointment of retailers viz.

reduction in the security deposits, facility for cash collection,
increased commission, etc.

vi. Creating consumer awareness and education.

B. Milk Products Marketing

With a view to improve the financial viability of dairies, broaden

the product mix to serve a larger section of the population and improve the
disposal of milk procured by the DCS, the dairies have resorted to the
production of long shelf –life, value added and fresh milk products
(indigenous milk based products / sweets). The product mix comprises of
Ghee, Table Butter, Ice Cream, Dahi (Mishti and Plain), Lassi (in sachets
and Tetra Bricks), Flavoured Milk, Peda, Kalakand, Gulabjamun, Rasogulla,
Paneer (vacuum-packed), Milk Cake and Khoa. Besides these products,
surplus milk is conserved in the form of white butter, skim milk powder
(SMP) and whole milk powder (WMP), which are mainly consumed by own
dairies.

Dairies are in the process of mechanising the production

processes for having better hygiene, improved sheltel life and commercial
production . All the products are sold under ‘SUDHA’ brand name.
Quantities of different products market table below:

Marketing of Different Milk Products

Milk Products Units 2002-03 2003-04 2004-05 2005-06 2006-07*
Ghee MTs 1025.6 991.18 942.2 1870.3 602.4
Table Butter MTs 81.9 44.79 91.9 106.4 70.9
Ice-cream MTs 255.3 257.53 229.1 263.5 204.2
Lassi MTs 1070.9 1615.13 1703.0 2519.0 1983.5
Misti Dahi MTs 492.6 538.69 534.0 563.5 339.0
Peda MTs 409.9 413.12 536.1 614.2 385.5
Paneer MTs 570.5 679.79 796.5 970.3 619.4
Sudha Spl. MTs 240.7 224.19 259.2 278.5 196.4
Plain Curd MTs 647.8 790.61 814.4 1285.1 993.2
Kalakand MTs 81.7 66.99 115.5 161.7 79.6
Rasogulla MTs 78.7 95.23 105.6 186.0 153.6
Gulabjamun MTs 75.6 98.51 107.7 164.8 123.1
*Till Sept,06
 MILK PROCUREMENT OF MITHLA MILK UNION

Milk procurement of Mithla milk union is done from the farmers at the
village level. In each village or block level a samity is formed. Each samity
at the block or village level has an elected president who has the
responsibility of supplying the fixed volume of milk.
The total procurement of milk in Mithla milk union is: -

(Table3)
Sl.No. MONTH 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

1 APRIL 1383.99 1280.75 1772.56 1894.19 2277.69 2547.32 3198.12 3718.56

46.13 42.69 59.09 63.14 75.92 84.91 106.60 123.95
2 MAY 1379.36 1374.42 1750.03 1978.24 2194.70 2814.50 3613.66
44.50 44.34 56.45 63.81 70.80 90.79 116.57 0.00
3 JUNE 1646.46 1733.90 2050.66 1982.08 2303.65 2852.53 3628.82
54.88 57.80 68.36 66.07 76.79 95.08 120.96 0.00
4 JULY 1965.52 1838.74 2132.49 2511.26 2138.51 3313.39 3661.88
63.40 59.31 68.79 81.01 68.98 106.88 118.13 0.00
5 AUGUST 1860.28 1828.01 1821.06 2082.26 2471.22 3425.32 3702.76
60.01 58.97 58.74 67.17 79.72 110.49 119.44 0.00
6 SEPTEMBER 1775.14 1826.01 1794.57 2401.47 2485.53 3384.33 4240.48
59.17 60.87 59.82 80.05 82.85 112.81 141.35 0.00
7 OCTOBER 1519.49 1716.14 2064.12 2012.19 2229.27 3601.13 4359.21
49.02 55.36 66.58 64.91 71.91 116.17 140.62 0.00
8 NOVEMBER 1554.28 1750.02 1802.54 2095.00 2145.65 3338.79 4527.64
51.81 58.33 60.08 69.83 71.52 111.29 150.92 0.00
9 DECEMBER 1674.84 1957.34 1974.65 2153.18 2561.98 3620.15 4620.72
54.03 63.14 63.70 69.46 82.64 116.78 149.06 0.00
10 JANUARY 1533.43 1535.24 1700.15 1931.69 2488.50 3394.77 3943.96
49.47 49.52 54.84 62.31 80.27 109.51 127.22 0.00
11 FEBRUARY 1662.18 1831.71 1921.77 2211.31 2597.33 3291.43 3940.36
59.36 65.42 68.63 76.25 92.76 117.55 140.73 0.00
12 MARCH 1770.27 1918.92 2047.87 2316.57 2881.18 3190.32 3978.28
57.11 61.90 66.06 74.73 92.94 102.91 128.33 0.00

TOTAL 19725.24 20591.21 22832.47 25569.46 28775.22 38773.98 47415.89 3718.56

54.04 56.41 62.55 69.86 78.84 106.23 129.91 123.95

Bold figure indicates average milk procurement per day IN THOUSAND LITRE/DAY
Graph 3

MILK PROCUREMENT YEARWISE

50000.00
40000.00
'0 0 0 K G

30000.00
20000.00
10000.00
0.00
2000- 2001- 2002- 2003- 2004- 2005- 2006-
01 02 03 04 05 06 07
YEARS
3.4 MILK MARKETING OF MITHLA MILK UNION :-

Milk and milk products marketing in Mithla milk union is done through
proper supply chain management. Here one distributor is appointed at
each district level. Under this distributor several retailer works .so products
to the consumer is reached through retailer only. No direct sale of milk and
milk product is being made. In Mithla milk union totally there are 15
distributors and about 600 retail outlets. Totally they cover the population
of 7,49,870 consumers. Here per capita consumption is about 150ml per
consumer. From the data it becomes clear that about 1549consumers are
covered through single outlet.

From the factory milk reaches to the distributor and from their it reaches to
retailer and finally to consumer.

FACTORY

DISTRIBUTOR DISTRIBUTOR

RETAILER RETAILER

CONSUMER
Milk marketing of Mithla milk union can be seen from this table: -

(Table 4)

2000-
SL.NO. MONTH 2001 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

1 APRIL 560.86 648.98 643.05 536.98 525.54 717.56 817.60

18.70 21.63 21.44 17.90 17.52 23.92 27.25
2 MAY 568.85 653.35 735.26 719.11 633.14 973.92 832.50
18.35 21.08 23.72 23.20 20.42 31.42 26.85
3 JUNE 473.75 466.89 550.90 533.05 710.97 739.94 707.32
15.79 15.56 18.36 17.77 23.70 24.66 23.58
4 JULY 466.05 428.48 422.24 442.20 271.56 483.49 604.63
15.03 13.82 13.62 14.26 8.76 15.60 19.50
5 AUGUST 537.03 488.88 509.52 554.68 487.18 476.17 605.24
17.32 15.77 16.44 17.89 15.72 15.36 19.52
6 SEPTEMBER 506.39 419.05 481.15 489.66 568.73 545.28 486.56
16.88 13.97 16.04 16.32 18.96 18.18 16.22
7 OCTOBER 543.83 480.09 424.00 551.26 602.36 590.50 613.69
17.54 15.49 13.68 17.78 19.43 19.05 19.80
8 NOVEMBER 488.91 492.37 471.95 558.24 724.83 594.34 474.61
16.30 16.41 15.73 18.61 24.16 19.81 15.82
9 DECEMBER 569.12 509.12 482.27 514.36 589.98 541.80 512.62
18.36 16.42 15.56 16.59 19.03 17.48 16.54
10 JANUARY 547.17 501.95 480.08 567.35 655.78 608.24 705.73
17.65 16.19 15.49 18.30 21.15 19.62 22.77
11 FEBRUARY 514.74 459.68 450.84 607.16 534.82 590.56 737.45
18.38 16.42 16.10 20.94 18.44 20.36 25.43
12 MARCH 638.69 602.64 543.65 652.57 645.94 764.12 742.47
20.60 19.44 17.54 21.05 20.84 24.65 23.95
TOTAL 6415.39 6151.48 6194.91 6726.61 6950.84 7625.90 7840.41
17.58 16.85 16.97 18.38 19.04 20.89 23.47

Amount in thousand liters.

Bold figure denotes average consumption in thousand liters per day.

Graph 4

MILK MARKETING YEARWISE

8000

7000

6000

5000

SALE OF MILK IN '000

4000
LTRS

3000

2000

1000

0
YEAR 2000-2001 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
YEARS
 MILK MARKETING IN SAMASTIPUR TOWN

In’000ltrs
(Table 5)

2000-
SL.NO. MONTH 20001 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

1 APRIL 113.89 92.10 113.16 97.58 67.13 85.97 147.59

3.80 3.07 3.77 3.25 2.24 2.87 4.92
2 MAY 115.23 139.63 180.33 222.65 133.91 351.14 242.86
3.72 4.50 5.82 7.18 4.32 11.33 7.83
3 JUNE 83.56 73.69 97.82 140.15 215.29 201.10 187.06
2.79 2.46 3.26 4.67 7.18 6.70 6.24
4 JULY 80.37 57.93 51.50 32.67 56.38 82.47 72.55
2.59 1.87 1.66 1.05 1.82 2.66 2.34
5 AUGUST 88.45 73.39 41.89 63.42 59.58 60.83 76.68
2.85 2.37 1.35 2.05 1.92 1.96 2.47
6 SEPTEMBER 70.96 48.96 52.81 40.84 73.25 65.66 45.68
2.37 1.63 1.76 1.36 2.44 2.19 1.52
7 OCTOBER 82.58 59.36 47.89 65.98 70.15 59.35 63.97
2.66 1.91 1.54 2.13 2.26 1.91 2.06
8 NOVEMBER 79.06 72.90 64.49 55.12 88.60 73.97 37.12
2.64 2.43 2.15 1.84 2.95 2.47 1.24
9 DECEMBER 83.03 75.88 58.66 57.49 63.43 55.66 41.67
2.68 2.45 1.89 1.85 2.05 1.80 1.34
10 JANUARY 107.32 87.97 74.49 90.02 97.53 84.06 82.97
3.46 2.84 2.40 2.90 3.15 2.71 2.68
11 FEBRUARY 72.53 60.12 55.81 79.62 55.86 59.30 63.34
2.59 2.15 1.99 2.75 1.99 2.12 2.26
12 MARCH 86.42 81.39 70.49 89.57 69.47 82.54 81.70
2.79 2.63 2.27 2.89 2.24 2.66 2.64
TOTAL 1063.41 923.32 909.33 1035.12 1050.56 1262.04 1143.18
2.91 2.53 2.49 2.83 2.88 3.46 3.42
(Table 6)

MITHILA DUGDH UTPADAK SAHKARI SANGH LTD,

SAMASTIPUR
YEAR WISE PHYSICAL PROGRESS OF MILK UNION

Sl.No. PARTICULARS Incr/Cum Unit 00-01 01-02 02-03 03-04 04-05 05-06 06-07

1 Avg. Milk Incr. TLPD 42.29 41.45 43.20 54.43 51.98 56.22 56.96
Marketing
2 Sudha Milk 272.41 457.80 537.65 842.80 953.08 1319.94 1242.72
product
Marketing
a. Peda Incr. MTs 37.30 40.58 50.72 68.22 76.13 91.97 129.49
b. Paneer Incr. MTs 36.78 51.69 64.83 99.10 106.04 124.61 170.60
c. Dahi Incr. MTs 37.56 54.91 68.50 60.83 44.33 38.47 43.27
d. Lassi Incr. MTs 50.07 115.03 98.58 141.97 171.90 230.17 201.55
e. Butter Incr. MTs 2.27 3.07 3.22 4.09 5.00 5.51 5.23
f. Sudha Incr. MTs 38.93 59.51 88.15 84.40 94.34 108.40 122.47
Special/Surabhi
g. Ghee Incr. MTs 25.90 57.45 54.54 219.60 238.18 413.14 105.84
h. Kalakand Incr. MTs 22.93 28.18 37.53 47.95 57.18 72.01 87.76
I. Rasogulla Incr. MTs 9.31 17.31 23.37 39.23 60.42 95.53 170.79
j. Gulabjamun Incr. MTs 9.19 20.42 29.38 55.79 71.01 100.73 166.56
k. Milk Cake Incr. MTs 2.17 7.86 11.25 13.37 11.35 14.44 13.51
l. Khoa/Khoa Incr. MTs 0.00 1.79 7.58 8.25 7.65 10.36 11.09
Mithai
m.Balusahi Incr. MTs 0.00 0.00 0.00 0.00 9.55 14.59 14.56
Graph 5

Milk mktg in samastipur town

1400

1200

1000
AMOUNT IN THOUSAND LTRS

800

600

400

200

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
YEAR
 Graph 6
DISTRICT

sale of milk in thousand liters

0
50
100
150
200
250
300

AP
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M
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JU
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JU
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AU
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TO
BE
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MONTHS
N
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M
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H
GRAGH SHOWING VARIATIONS OF DEMAND OF MILK IN Samastipur

2006-07
4. DEMAND AND ITS VARIATIONS
Now as per my topic “seasonal variation in demand of sudha milk and
milk products in samastipur district and how to coupe it”

Here we should first know -what is demand, what are the factors affecting
it?

If we turn around our eyes we will find there are many firms which are
facing the problem of seasonal demand variations .For example woolen
clothes are sold only in winter, rain coats and umbrellas are sold only in
rainy season and so on.

But there is a big difference between these industries and the milk
industries. These industries products are not perishable .They can even
manufacture for whole year and sell them only in their favorable seasons.
But in case of milk these demand variations create a bigger problem in
fulfilling the demand of the consumer.

From the analysis of the past data it has been found out the demand of
milk and its product of Sudha rises to such a extent in some festivals and
some occasions like marriage, upnayan etc that it becomes impossible for
the firm to meet the demand of the consumers completely.

Demand variation cannot be stopped completely. Efforts can be made to

minimize the demand variation which we should discuss later.

4.1 DEMAND

Demands are wants for specific products backed by an ability to pay. So

here in the case of milk if a consumer have the enough money to pay for
the milk and its product they want it becomes their demand.

4.2 FACTORS AFFECTING DEMAND FOR A PRODUCT

For any products their demand depends upon the following two factors:-

1. Environmental factors
2. Personal factors

1.Environmental factors:- companies and their suppliers, marketing

intermediaries, customers, competitors and publics all operate in the same
environment of forces and trends that gives opportunity and pose threats.
These forces represent “noncontrollables”’ to which the company must
monitor and respond. It includes the following factors:-

1. Demographic factors

2. Economic factors

3. Technological factors

4. Political-Legal factors

5. Social-Cultural factors

1. Demographic factors: - Demand for any product depends a lot upon

the demographic factors. Some of the demographic factors which affect
the demand are:-

a) Population growth: - world population shows an explosive growth and

similar is in the case of population growth in Samastipur, Darbhanga and
Madhuvani Districts. We know that the Population is directly proportional to
the demand for any commodity. So as the population will grow the demand
will also grow automatically under normal conditions.

b) Population age mix: - National populations vary in their age mix. At

one end there is Mexico, a country with a very young population and rapid
population growth. At the other extreme is Japan, a country with one of the
world’s oldest populations. Milk demand would be more in Mexico as
compared to that of Japan.

So the demand of milk in Samastipur also depends upon the

population mix of the District.

c) Educational groups: - the population in any society falls into five

educational groups: They are – illiterates, high school dropouts, high
school degrees , college degrees , and professional degrees. So the
demand for any products depends upon these educational groups.

d) Household patterns: - The “ traditional household “ consists of

husband, wife and children (and sometimes-Grand parents). But in today’s
scenario most of the households are ”diverse” or “non traditional “ and
single live-alones, adult live together of one or both sexes, single-parent
families, childless married couples etc. hence the demand for milk and
other products also depend upon this factors.

2. Economic factors: - Markets require purchasing power and people.

The available purchasing power in an economy depends on current
income, prices, savings, debt, and credit availability. So demand for any
product depends upon this all factors.

3.Technological factors: - Technological up gradation also affects the

demand of the consumer to a greater extent. Technology has released
such wonders such as penicillin, open-heart surgery, and the birth control
pill. It has released sucg horrors as the hydrogen bomb, nerve gas etc.

Every new technology is a force for “creative destruction”.

Television hurt the demand for newspapers; xerography hurt the demand
for carbon paper and so on.

4. Political-legal factors: - Market demands are strongly affected by

developments in the political and legal environment. This factor is
composed of laws, government agencies, and pressure groups that
influence and limit various organizations and individuals.

5. Social and cultural factors: - Demand for any commodity depends

upon the social and cultural factors. In the case of milk and its product this
is the main factor, which causes the variation in the demand. A household
who consumes a liter of in a day requires at least ten liters in any special
occasion like Diwali, Dussehra etc. because it is their culture and they will
follow it in any circumstances.

So in this region (i.e. Samastipur, Darbhanga and Madhuvani

district ) the variation in demand as per the analysis of data is due to this
factors.

Personal factors

In addition to the above factors there are certain personal factors, which
affect the demand for any commodity. Some of them are: -
1.Income of individuals: - Demand for any commodity depends upon the
income of the individuals to a greater extent. We can see that the family
whose earning is good demands sufficient quantity of milk and milk
products daily but the family whose earning is not good demand the milk
and its product occasionally.

2.psychological factors: - Generally the demand for any products also

depends upon the psychological factors. The four major psychological
factors are – motivation, perception, learning, and beliefs and attitude. So
the demand for milk depends upon all such factors.

3. Availability of the substitutes: - Demand of any products depends

upon the availability of its substitute. If a consumer gets same product at
lesser price the demand of the demand of original product will fall. If their
will not be any substitute whatever be the price the demand remains nearly
the same.

In the case of milk the main substitute is the local vendors milk who does
not have any fixed rate and it varies according to the situation.

4.Family: - Demand also varies with the size and age of the family. If the
family is small lesser quantity of milk is required. If any family have
younger generations they require more milk compared to the older
generations family.

5. How to cope the seasonal demand variations

As per the analysis of the previously recorded data and by utilizing several
research techniques it has been found out that their is a great seasonal
variation in the demand of milk and milk products in Samastipur district and
its nearby districts like Darbhanga and Madhuvani which comes under
Mithla milk union. This demand of milk and milk products mainly rises in
festival season and in the special occasions like marriage, upnayayan etc.
The demand during these special occasions rises even to 4-5 times of the
general demand. So it creates a major problem for the firm to fulfill these
demands. So sometimes firm becomes unable to meet this demand. Since
the product of the firm (i.e. milk and its product) is highly perishable so the
firm has to manufacture the product on the same day basis. Hence this
demand variation is even more critical for this firm.

If we take the example of several firms we can see that several researches
have been made to stop the demand variation. But it is of no use. We
cannot stop the demand variation completely. We can only take certain
measures to minimize this demand variation some of the measures, which
I feel to be undertaken to minimize this demand variations are: -

1. Increasing the number of milk Parlors: - By analyzing the data it has

been found that at present there is one milk parlor in approximately 1000
consumers. So the retailer has only the relationship with the consumer as
a seller. They don’t have any personal relationship. If we increase the
number of milk parlor i.e. 300 consumers per retailer or 500 consumers per
retailer, the retailer can develop a personal relationship with the consumer.
They can know each consumer personally and they can know their
demands beforehand as they will be directly associated to them.

2. Rural marketing: - If we analyze the marketing of Sudha milk and its

product we will find that its parlors are mostly in the town areas. Though in
the recent years it has opened several parlors in villages also and also
fulfills the demand of milk of the villagers through samities. But still it lacks
behind in marketing in the remote villages. Villagers who don’t receive the
milk daily in their village by Sudha parlor meet their daily requirement of
milk by local vendors but when they require this milk and its product in bulk
they move to their district headquarters and purchase it from their. So this
creates a huge variation in demand.

3. Consumer awareness program: - This huge variations of Sudha milk

and its product in this region is due to the social and cultural factors. Here
in whole mithlanchal (i.e. in Samastipur, Darbhanga & Madhuvani) they
don’t purchase the milk on daily basis or very little milk just for tea. But in
any occasion they need milk in huge quantity. It is their customs. They take
the milk for making rasogulla or for making curds. So through various
awareness programs they can be said to take the milk and its product on
daily basis rather than occasionally.

4. Duel pricing policy : - Sudha firm can make a policy of duel pricing. A
consumer who is a customer of Sudha firm on daily basis can be given the
milk and its product at the normal price on any special occasion also. And
for other’s it can be fixed little higher. So this can motivate the consumers
to become a regular Sudha customer and hence it can help in coping the
unusual rise in demands.

5. More emphasis on sale of bulk milk products: - Awareness

programme should be launched to make aware the consumers for
purchasing the bulk milk products like dahi, rasogulla etc. in bulk packs of
50 kg and so on. Milk products life is comparatively longer than the life of
the milk , hence this can solve some problem of meeting the demand.
These bulk packages should be available in rural or interior areas also.

6. Increase in the number of chilling centers:-If small or mobile cold

storage is made available in the sub-division or block level then the life of
the milk and its product can be increased to some extent and thus this
could help in coping the unusual rise in demand.

7. Fast information system: - If the information system between the

consumer to retailer, retailer to distributor and distributor to the firm
becomes faster then the demand can be known in time and thus this will
also help in coping the demand variations.

8. Packaging: - today if we turn around our eyes we will find that milk and
its product are available in tetra packs, which increases the self life of the
product. Packaging is new trend and best concept in marketing in
fulfillment of consumer demand particularly for the perishable food
products.

9. Transportation: - Better and fast transport system gives an edge to the

manufacturer to make available of products and services to the consumer
right on time. Better delivery system eases out any misconception from the
consumer and thus reduces the over demand or false demand from the
market.

10. Advertising / presentation: - To meet the challenges poised by the

market through heavy demand from the consumers and the retailers. It can
be tackled by proper and advanced planning. Organization may plan for
cent percent fulfillment of market demand through proper and advanced
management of entire internal and external system. This had to be
informed right in advance to the perspective consumers through
advertisement and confidence building measures should be adopted with
the retailers and distributors as they are the vital part of our distribution
channels.
DISTRIBUTION SYSTEM IN SAMASTIPUR DAIRY
The distribution mechanism of Samastipur dairy is unique. The Marketing of milk id
done by dairy itself. The dairy vehicles takes the milk from the dairy and directly
distributed them to the milk from the dairy and directly distributed them to the parlour,
retailers but the milk produces are sent to the retailers through C/F agents who takes
order from various retailers and then takes the products from the dairy and distributes
then to the parlour retailers. All the orders are taken in cash payment or in bank drafts. To
what system may be shown like this.

Samastipur Dairy

↓
C/F Agents

↓
Parlour/Retailers

↓
Consumers
AREA COVERED

In Samastipur – Samastipur , Darbhanga , Madhubani .

TARGET GROUP

Distributors, Stockiest, Retailers

PRODUCT PROFILE
Samastipur dairy supply two types of products-
1. Liquid Milk
2. Milk product i.e. product from milk.

1. LIQUID MILK

Presently dairy markets two types of milk namely toned milk (TM) and
standard milk (SM) is also known as full cream milk. Besides two types of milk dairy
also produces other kinds of milk time to time as per demand. Milk is categorized on the
basis of the percentage of fact and solid Not Fat (SNF) present in the milk. The
percentage of these combinations that are Fat and SNF includes water (87%) protein (3.5-
5%) lactose (4.6-5%) mineral (0.7-8.8%), carbohydrate (4-5%) etc.
Liquid Milk is sold at a brand name of “SUDHA”, Thus standard milk is
as follows:

Particulars Fat % SNF %

1. Full cream Milk Not less than 6 Not less than 9
2. Standard Milk Not less than 4.5 Not less than 8.5
3. Toned Milk Not less than 3.0 Not less than 8.5
4. Doubled toned Milk Not less than 1.5 Not less than 9
5. Skimmed Milk Not less than 0.5 Not less than 8.7

2. MILK PRODUCTS

Following are the various types of milk products produced by the dairy.
1. Ghee
2. Peda
3. Kalakand
4. Rasogoulla
5. Gulab Jamun
6. Dahi ( Plain & Misti )
7. Lassis
8. Sudha special
9. Milk cake
10. Khoa
11. Paneer
12. Milk Powder
BRAND

Identification is essential to competition because without a means for identification

there is no way of making a choice. Brand name facilitated in making choice.
Branding is and important aspect. A brand is a name term symbol or design or a
combination of them. Which is intended to identify the goods or services or a seller or
a group of sellers and to differentiate than from these of competitors.
Brand name is a part of a brand consisting of word, letter, group of words or
letters comprising a name, which is intend to identify the goods, or services of a seller
and to differentiate them from those of competitors.
The brand name of Samastipur Dairy is “SUDHA”, All the products
including liquid milk and milk products are marketed as a brand name “SUDHA”, It
is family brand name, which is limited to one line of product, It has secured very
good popularity irrespective of the area/market.
 DISTRIBUTION STRATEGY

• Concept of Distribution
• Importance of Channel of distribution
• Evolution and Development of Marketing channels
• Distribution Channel Practised at Samastipur Dairy
• Process Flow Chart for Milk
 DISTRIBUTION STRATEGY
CONCEPT OF DISTRIBUTION
The main function of the marketing is to place right product to the right place at right,
time. The distribution strategy is concerned with the product or service placement.
Broadly speaking the overall distribution strategy is concerned with two catergories
of issues and decisions which need to be handled. These are-
-Management of marketing channel and
-The management of physical supplied.
Channel decisions refers to the managerial decisions or the selection of
best routes or paths for moving goods from the producer to consumer. Channel of
distribution are concerned not only with the physical distribution of goods but also
with their promotion, selling and marketing channel. The term channel of distribution
is used to refer the various intermediaries who help in moving the product from the
producer to consumer. These intermediaries bear a verity of names such as sole
selling agent, marketers, Whole sellers, Distributors, Stockiest, Dealer, Retailer etc.
All such marketing intermediaries used by the producers to continue the distribution
channel.

According to PHILIP KOTLER

“Marketing channels are sets of interdependent organizations involved in the process
of marketing a product or service available for use or consumption.”

IMPORTANCE OF CHANNEL OF DISTRIBUTION

Channel of distribution are the most powerful element among marketing mix
elements. Many products which are intrinsically sound died in their never found the
right way to the market on the other hand by developing a sound distribution network
and handling aggressive advertisement, campaigns a company can earn much for
itself.
It plays a very important role in achieving the marketing objectives of a
firm undoubtedly value utility is created by the manufactures of the product or service
but time and place utilities in created of Distribution channel.
According to DRUCKER
“ Both the market and Distribution channel are option more crucial than the product.”

Why marketing Intermediaries are used:-

Intermediaries normally achieve superior efficiency in making goods widely available

and essential to the target markets. Through their contacts, experiences, specialization
and scale of operations. Intermediaries usually after the firm more than it can achieve
on its own.

EVOLUTION AND DEVELOPMENT OF MARKETING CHANNELS :

ECONOMIC AND BEHAVIOUR DIMENSIONS

Function of Middleman
The function of middleman in the marketing channel is to create utilize.
Place Utility
Carry things from the produced to place where they are needed.
Time Utility
Put the goods at the disposal of the consumers when they are needed.
Purpose & Importance of Distribution Channel
The justification of the middleman rests on specialised skills in a variety of
activities.
Transaction Costs
Transaction costs can be carried of at lower cost through the distribution
channel than through direct exchange.
Process Efficiency
The intermediaries can increase the efficiency of exchange process.
Matching Segments
Given heterogenecity of demand and supply, the marketing channels match
segments of demand with segments of supply.
Structure of distribution Channel
The concept of functional spin-off is relevant to evaluate and analyse changes
in the distribution structure. Few of the hypothesis founded on the functional spin-off
concept are:
1. A producer will spin off a marketing function to a marketing
intermediary(s) if the later can perform the function more
efficiently. Than he will spin-off that sub-function to the latter.
2. If marketing intermediaries characterise an industry,their nature
will be determined by the mix of function and sub-functions
spin-off.
 3. The greater the market size is relation to optimum scale size, (at
each channel level), the greater the number of channel numbers
that will come into being.
4. With a change in technology and the growth of optimum scale
size,firms may be expected to leave the channel if there is no
corresponding change in market size and vice-versa.

The above institutional perspective of distribution channel release heavily on

economic concepts related to efficiency.
The other institutional perspective is to understand distribution channel on
behavioural standing of channel structure and performance. The behavioural to be helpful
in explaining variations in structures.

Power Relationships
The Power is pervasive in the channel because each member is dependent at least
to some extent, on the other. The concept of dependency and commitment are key to
power relationships in marketing channels.

Concept of Conflict
The actions or behaviour of output (major in terms of individual goals) achieved
by other.

Concept of Co-operation
The Co-operation stems from effort (joint action) and that underlying this section
is the exception of a balanced exchange.
The above concepts indicate that the marketing channel theory is fragmented into
two seemingly desperate disciplinary orientation : an economic approach and a
behavioural approach.
DISTRIBUTION CHANNEL PRACTISED AT SAMASTIPUR DAIRY

In the Samastipur Dairy Marketing of milk and milk products start before
production. At first the marketing manager collets order and demand from the customers
and on the basis of demand they communicate the production department for production
of goods according to the demand. Since its products may be risky. So it is the
responsibility or the marketing department to get orders from the customers or from their
channel members and insure the production of milk/product.
Samastipur Dairy is a co-operative sector so its raw material (milk) comes
from different societies, which are generally situated in rural areas. And the colleted milk
is carried by the milk van (Tanker or Jeep). The employees of quality control departments
ensures and verified their seal of packing and also about the quantity of milk and after
that they starts the process of quality aspects.

In case of milk and milk products retailer ask about their demand to dealer and
dealer informed the marketing division of dairy.

TYPES OF INTERMEDIARIES
The channel of Samastipur dairy is not so large dairy used the following
channel for marketing of the milk and the milk product.
DIRECT SALES

It is not a general way of marketing of Samastipur Dairy but sometime this

method is used. Dairy sale the product/milk through society on special demand at the
time of Lagan and Festivals.

RETAILERS

Milk parlour is the main selling point of Dairy’s products. In the parlour the
availability of refrigerator also be insured by the dairy, for making 24 Hrs. availability of
milk and milk products. In its original quality in the rural areas sale point or booth are
functioning well. For getting license for retailership interested party have to full fill some
criteria and a fixed amount.
DISTRIBUTOR

For the distribution milk certain routes has been selected. Separate vans used for
different routes for the distribution of milk. The staff of Dairy unload the milk and at the
same time they gets an order from the concern retailers, in case of milk products
distributor of concern area get demand of milk products and full fill the demand by their
own transport facility.

MODE OF PAYMENT

In the whole marketing process the payment for milk and milk products can be
down by-
- Cash
- Bank pay in slip
- Demand Draft.

CASH
Cash payment may be made by retailers along with cash pay in slip duly in filled up
in format. This cash pay slip can be used for milk as well as other products also.

BANK-PAY-IN-SLIP
For this purpose the retailer fills up printed slips.The bank pay in slip contents party
code no. Details of products and quantity time and date.

DEMAND DRAFT
It is the most popular and safety way of payment.

RECORDS MAINTENANCE
The main records that have to the maintained by marketing / account section for
accounting of marketing operations are as-

A. DAIRY MILK DISTRIBUTION SHEET CUM GATE PASS

This is prepared rout wise separately for each morning and evening for sale of
milk and milk product.

B. MILK DELIVERY CHALLAN

Milk delivery challan given by marketing division of dairy to the transporter.

C. DAIRY MILK SAKE REGISTER

This is a crucial multi purpose record which is to be maintained by the account
section.
 D. SUMMARY MILK SALE REGISTER
This registers some rises the milk sale activities of each month and it maintained
the daily figure and also the monthly figure.

DAIRY CRATES/CANS ACCOUNT REGISTER

As milk supply to the retailers is issued in plastic crates. It becomes
necessary to ensure that proper account is kept in this regard. So dairy maintains register
for carets and cans. Samastipur Dairy recently started the programme in which the
retailers have to keep their own carets which is given by dairy.

MILK PRODUCT SALE REGISTER

The counter clerk/marketing section on a milk product sale register will
record the detail of each milk products sales.
 Consumer Behaviour

As mentioned earlier, the aim of marketing is to meet and satisfy customers’ needs and
wants. The field of Consumer Behaviour studies how individuals, groups, and
institutions select, buy, use, and dispose of goods, services, ideas or experiences to satisfy
their needs and desires. Understanding consumer behaviour and ‘knowing customers’ are
never simple. Customers respond to influences that change their mind.

Major Factors Influencing Buying Behaviour:

A consumer’s buying behaviour is influenced by cultural, social, personal, and

psychological factors. Cultural factors exert the broadest and deepest influence.

1. Cultural Factors:
2.
• Culture – set of values, perceptions, preferences etc.
• Subculture – nationalities, religions, racial groups, and geographic regions
• Social class – relatively homogenous divisions in a society

3. Social Factors:

• Reference groups – family, friends, neighbours, co-workers, etc.

• Family
• Roles and Statutes

4. Personal Factors:

• Age and Stage in the Life Cycle

• Occupation and Economic Circumstances
• Lifestyle
• Personality and Self-Concept

5. Psychological Factors:

• Motivation
• Perception
• Learning
• Beliefs and Attitudes
 DATA ANALYSIS OF CONSUMERS

As we surveyed customers/House hold and asked some questions

question to get their opinions relating to liquid milk and after
analyzing their opinions we arrived at the following results:-

1. Consumption of milk-
Table no 1.1 Given below shows the percentage of customers
who consumes milk.

Table no.1.1

Yes,Occassionally No
Yes,Regularly
87% 12% 1%
100
75 Yes

50
Yes,Occassiona
25 ly
0 No
1
Graph No. 1.1
 2. From of liquid milk purchased:-

Table no1.2

Unbranded Branded

76% 24%

80 76
60
24
40 Unbranded

20 Branded

Graph No –1.2

It is clear from the graph that the most of the person in the area of
Samastipur purchases branded liquid milk from the market.
 PLATFORM TESTS OF MILK
The tests which are performed to judge the quality of milk at milk reception dock /
platform are known as platform test: Various platform tests are as follows:-

1. Organoleptic Tests:- Judging the quality of milk by its taste and smell requires
considerable skill and experiency.
a) Smell:- Open the lid of the Can / Container and immediately smell. If any
abnormal odour is detected, then milk may be rejected or kept for
confirmatory test, otherwise accepted as good milk.
b) Colour:- Colour of milk can change only if extraneous matter ids added to
it. Hence, if abnormal colour is observed, it may be rejected, other- wise
accepted.
c) Taste:- If the milk does not smell fresh, but its taste is normal, it can be
accepted or if it tastes sour or bitter, it should be rejected.
2. CLOT-ON-BOILING (C.O.B.) TEST:- This is a quick test to determine
developed acidity and suitability of milk for processing.

Apparatus:- a) Test tube, preferably with a mark of 5ml.

b) Water bath.
Procedure :- Transfer 5 ml. of the milk sample to the test tube and place the tube in a
boiling water bath and hold for about 5 minutes and smell for any acidic flavour. Remove
the tube and rotate it in an almost horizontal position and examine the film of milk or side
of the test tube for any precipitated particles. The formation of clot is indicative of a
positive test.

Interpretation:- The principal features of the tests are speed and definiteness of results.
Milk either remains unchanged or coagulates. Milk which gives a positive C.O.B. Test
has an acidity generally above 0.17 percent ( as lactic acid ) and is not suitable for
distribution as liquid milk or for processing.
3. ALCOHOL TEST:- This test is used for rapid assessment of stability of milk to
processing , particularly for condensing and sterilization. The alcohol test is
useful as an indication of the mineral balance of milk and not so much as and
index of developed acidity. This test aids in detecting abnormal milk such as
colostrums milk, milk from a animals in late lactation. In milk mineral balance
has been disturbed.
Apparatus:- a) Test tubes: 150 x 19 mm, preferable with graduation marks at 5 and
10 ml.
b) Measure for Alcohol at 5 and 10 ml.
Reagents:- Ethyl Alcohol ( 68 % by weight or 75 % by volume,
Density at 27 Digree C is 0.8675 kg / ml.)

Procedure :- Place 5 ml. of milk in a test tube add an equal quantity of alcohol. Mix the
contents of the test tube by inverting several times. Note any flakes or clot. The presence
of a flake or clot denotes a positive test.
Interpretation:- A negative test indicates low acidity and good heat stability of the milk
sample. Milk showing positive test is not considered suitable for the manufacturing of
evaporated milk which has to be sterilized to ensure its keeping quality.
 RESEARCH METHODOLOGY
Types of Research descriptive Research

Data Source

To achieve the objective any source are used primary as well as secondary for collecting
required data.

Primary sources includes the consumers retailers and organisation’s office. Secondary
data includes past record of organization.

The technique adopted for collection of data and sampling limit size 100 mainly are:-
1. Questionnaire Method.
2. Interview Method.
3. Observation Method
1. Questionnaire Method
A set of relevant questions according to the requirement for collection of
appropriate data for study a questionnaire is formed. It is first tested of small sample, then
is modified and developed according to the environmental situations and affecting
factors. Each questionnaire is framed with systematic and modern techniques so that it
can be help in achieving the objective to a maximum possible limit.
The respondent is personally contacted . He is requested to answer the
questions. The questions are made clear. The questionnaire is filled with response of the
respondent.

2. Interview
It is face to face interacting the direct question are asked to the respondent.
During the time at interview the requisite any modify or change the questions according
to situation only the relevant points are noted own need.
3. Observation
Personal Interview to ask question to respondent is face to face interaction.
4. Sampling Method and Size
Among the finite universe 100 retailers are selcted on the basis of probability
or Sample Random Sampling Method.
5. Tools of Data Collection
The tools used in the data collection are a quite popular tool for gathering the
Primary data i.e. questionnarie. The questionnaire gives us the exact view of all the
respondents and hence it is more dependable and reliable if is the heart of the entire
survey as on analysis and interpretation depends upon the questionnaire.
 CONCLUSION

After the study of Samastipur Dairy I saw all activities after that I found the dairy do
work well:

• Pricing are very reasonable for the product.

• The distribution of the products are systematic.
• I am satisfy to see this network system and customers are also satisfied. In
rural area also this dairy do work properly.
 SUGGESTION

The above study elicit the fact that sales department and distribution channel should
have some changes like.
- Organisation should adopt automatic and computerized quality control system to
keep the products pure and hygienic.
- The organization has to improve in the production and quality.
- To boost the sale of the Sudha Milk and Products commission of the retailer
should be increased.
- The promotional incentives should be increased and distributed among all the
members of the distribution channel.
- To ensure availability for 24 hrs.
- If possible please available 200 ml pack.
 QUESIONAIRE ON CONSUMERE
BEHAVIER WITH RESPECT TO SUDHA

PART A:- INTRODUCTION

1. Name of the consumer :-

a) Age :- c) Qualification :-
b) Sex :- d) Occupation :-

2. Address of consumer:-

3. Contact number :-
PART B

4.what is your monthly house hold income (in Rs) ?

(a)below 5000 (b) 5000-10000
(c) 10000-20000 (d)above 20000

5. Do you purchase liquid milk ?

a) Regularly (b) Ocassionally (c) No

6. In what form do you purchase liquid milk ?

a) Loose (b) Fat (c) Both

7. Which brand of milk do you use ?

a) Sudha (b) Amrit (c) Loose

8. How much quantity you purchase daily ?

Ans:-

9. What are the sources of purchasing milk ?

a) Vendor (b) Retail shop (c) Parlour

10. What is your opinion about

a) Quality (b) Supply timing / avaliability
c) Price (d) Taste
11. Weather SUDHA price is reasonable or not ?
a) Yes (b) No

12.How much distance you purchase to purchase liquid milk ?

(a) 0.5 km (b) 0.5 – 1 km (c) More than 1 km
13. Who purchase the milk ?
a) Self (b) Son / Daughter
c) Husband (d) Home delivery
14. Why do not you purchase liquid milk ?
a) quality milk not available (b)Can not afford
c) House hold producing milk (d) Other

COMPLAINTS :-

SUGGESTION :-

SIGNATURE