Final SIP Report

A REPORT ON

“A STUDY OF PERFORMANCE AND GROWTH OF SARAS DAIRY”

BY
SMITA CHOUDHARY
Submitted on: 24th September 2007

SARAS DAIRY, ALWAR

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR
ISO 9001-2000 AND HACCP CERTIFIED
JAIPUR ROAD, ALWAR
PH. 0144 -2702644, 2701010

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 Final SIP Report

A REPORT ON

“A STUDY OF PERFORMANCE AND GROWTH OF SARAS DAIRY”

BY
SMITA CHOUDHARY
MBA (III SEMESTER)

A report submitted in partial fulfillment of the requirements of

PGPROGRAM (Class of 2007)
ICFAI National College,

Copies marked list: Mr. Sandeep Kumar Kautish (Faculty Guide)

Mr. Amit Bhattacharya (Company Guide)

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TABLE OF CONTENTS

Acknowledgement.........................................................................................4
Preface............................................................................................................5
Declaration.....................................................................................................6
List of tables and illustrations........................................................................7
Abbreviations.................................................................................................8
Company profile............................................................................................9
Departments of AZDUSS..............................................................................18
Abstract/Summary.........................................................................................24
Introduction....................................................................................................26
Body of thesis................................................................................................29
Research design/methodology.......................................................................33
Review of literature........................................................................................38
Empirical analysis..........................................................................................40
Findings..........................................................................................................44
Conclusion.....................................................................................................60
Recommendation...........................................................................................61
Appendix........................................................................................................63
References......................................................................................................71
Glossary.........................................................................................................72

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ACKNOWLEDGEMENT

I express my heartfelt thanks to Mr. J.R. Dhaka, Managing Director, AZDUSS Ltd. for his
direction, help and motivation.

I express my sincere thanks to Mr. Sandeep Kumar Kautish (Faculty Guide), Mr. Amit
Bhattacharya (Company Guide, Plant Manager, Saras Dairy, Alwar [AZDUSS Ltd., Alwar]),
Mr. L.C. Balai (Deputy Manager, Marketing) and Mr. Anil Kumar Mathur (Deputy Manager,
Administration) for their support and cooperation. They provided me their valuable help and
guidance during the training period.

I shall be highly indebted to the staff of the marketing department of Saras Dairy (AZDUSS
Ltd., Alwar) for the moral support they extended to me during the SIP training.

I also thank the booth/parlour owners and the respondents whom I surveyed for giving me
their valuable time and fruitful suggestions.

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PREFACE

Marketing is one of the most important functions in business. It is the discipline required to
understand customers' needs and the benefits they seek.

No study can be termed complete if there is no practical experience. Hence need for training
has become a real necessity. The training aims to prepare students through a process of
practical experience. Practical exposure no doubt has contributed a significant amount of
knowledge to me along with real life experience and was an ideal combination of academic
knowledge and practical experience.

Marketing activities can be regarded as lifeblood of all business concerns. In order to enhance
the performance of marketing department and overall success of a business concern, study of
consumer behavior and their satisfaction, sales and distribution channels, advertisement and
competitive advantages is necessary. The performance of a company is very much important
for an organization.

Saras Dairy, Alwar is in fact a very ideal location to gain practical experience. I am sure the
experience gained in short duration, will go a long way in all my future endeavors.

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DECLARATION

I hereby declare that this project work entitled “A study of performance and growth of
Saras Dairy, Alwar” is my original work, carried out under the guidance of my Faculty
Guide Mr. Sandeep Kumar Kautish and my Company Guide Mr. Amit Bhattacharya.
The facts and figures produced in this report are based on my own experience and study. This
report neither full nor in part has ever been submitted for award of any other degree.

Smita Choudhary
6ND11765
ICFAI National College
Alwar

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LIST OF TABLES AND ILLUSTRATIONS

Table/figure What it illustrates Page no.

Figure1...........Map showing location of milk and milk product industry..............12
Figure2...........Organization chart for AZDUSS.....................................................16
Figure3...........People’s opinion about dahi............................................................44
Figure4...........People’s opinion about paneer........................................................44
Figure5...........People’s opinion about ghee...........................................................45
Figure6...........People’s opinion about lassi............................................................45
Figure7...........Survey result of 214 booths/parlours. .............................................46
Figure8...........Responses of 250 people who visited the plant..............................47
Figure9...........Survey result of 500 people............................................................48
Figure10.........Registered DCS...............................................................................52
Figure11.........Milk product manufacture...............................................................53
Figure12.........Milk procurement............................................................................54
Figure13.........Liquid milk sale..............................................................................55
Figure14.........Turn over.........................................................................................56
Figure15.........Golden advice for Saras..................................................................61
Table1.............Overview of Saras Dairy, Alwar.....................................................10
Table2.............Summary.........................................................................................24
Table3.............Tasks and targets assigned to me....................................................30
Table4.............Performance analysis......................................................................32
Table5.............AZDUSS Performance at glance....................................................38
Table6.............Saras milk supply of Alwar city......................................................39
Table7.............Change in prices of Saras products.................................................49
Table8.............Reasons of those people who are not using Saras products............50
Table9.............My observation of Saras products ..................................................57
Table10...........My observation of Saras dairy........................................................58
Table11...........SWOT analysis of AZDUSS...........................................................59

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ABBREVIATIONS

1. AZDUSS..........................Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar

2. DCS..................................District Cooperative Societies
3. FGS..................................Finished Goods Supply
4. FMP..................................Fresh Milk Products
5. HACCP............................Hazard Analysis Critical Control Points
6. ISO...................................International Standard Organization
7. OJT...................................On Job Training
8. SIP....................................Summer Internship Program
9. SKM.................................Skimmed Milk Powder
10. WMP................................Whole Milk Powder

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COMPANY PROFILE

Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar (AZDUSS Ltd., Alwar) is a
cooperative organization registered under Cooperative Act with Registrar of Cooperative,
Government of Rajasthan. AZDUSS Ltd., Alwar was established in the year 1972 keeping in
mind the interests of the cattle rearers to implement dairy development activities in the Alwar
district, under Operation Flood Program. The task of milk collection started from 22 nd August
1973. The main objective of the organization is to eliminate the role of intermediaries and
give cattle rearers good value for the milk and prevent them from exploitation. The other
objectives of the organization are:

1) To help in financial development of the villages and cattle rearers.

2) To help in the social and financial development of the rural milk producers.
3) To increase the milk producing capacity of the cattle.
4) To make available pure, healthy and high quality milk and milk products to the
customers.

AZDUSS receives direction and assistance from Central Government, State Government,
RCDF Ltd. Jaipur and National Dairy Development Board, Anand from time to time.
Presently the dairy plant has a capacity to process 1.50 lakh litre milk, prepare 10 M.T. milk
powder and 9.0 M.T. ghee per day. Besides these the plant also prepares chhach, lassi, dahi,
shrikhand, paneer and other milk products. The plant also has a capacity to pack 2.50 lakh
litre milk per day.

The Alwar plant of Saras (AZDUSS Ltd., Alwar) has been certified under internationally
accepted quality and food safety management systems in accordance with ISO 9001-2000
with HACCP. The organization also helps in improvement of animal breed, providing animal
health services, insurance of animals, women dairy project and providing vermi compost
manure to the cattle rearers. The organization also provides cattle feed which is purchased
from Nadbai and marketed in Alwar.

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Overview of Saras dairy, Alwar

Table 1

Chairman Mr. Ram Phal Gurjar

Managing Director Mr. J.R. Dhaka

Establishment year in Alwar 1972

Employees Permanent employees 197

Contract labor 150

Certifications ISO 9001-2000

IS 15000 (HACCP Food Safety Management System)
No. of registered Cooperative 795
Societies
Products Full cream milk, toned milk, double toned milk, skim
milk, dahi, paneer, ghee, chhach, lassi, shrikhand
New product Ice-cream and softy to be launched soon

Address Jaipur Road, Alwar 301001 [Rajasthan]

Telephone (0144)-2702644(Customer care), 2701010, 2333926

Fax (0144)-2342925

E-Mail rcdfalw1_jp1@sancharnet.in

Turn Over (2006-07) 99.15 Crore

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UNDERSTANDING ISO-9001-2000 AND HACCP

Introduction

Adoption of ISO-9000 and HACCP standards for an organization are order of the day and
need of the time to be on competitive edge in the Food Industry.
It demonstrates the ability of dairies of Rajasthan Co-operative Dairy Federation to satisfy the
needs of its customers and interested parties.
Today, almost all the major unions of R.C.D.F. are certified under ISO 9001-2000 and
HACCP, integrated quality and food safety management systems.
Nevertheless, understanding of the concepts of ISO 9001-2000 and HACCP is confined to
small section of top/middle management employees.
Therefore, an effort is being made through this article in a precise and simplified manner to
explain the basic concepts of ISO 9001-2000 and HACCP standards, which will surely help
in better understanding of these standards among the rank and file of the organization.

HACCP

HACCP is a food safety management system and has its origin in U.S. manned space
programme to ensure food safety to the astronauts in late 1960s.
The standard designed to keep food safe in outer space has now become a standard on the
earth.

What is HACCP:-

A system, which identifies, evaluates and controls hazards, which are significant for food
safety.

H- Hazard
A- Analysis
C- Critical
C- Control
P- Points

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Map showing location of milk and milk products industry in Rajasthan

Figure 1

Product Portfolio

Saras Dairy, Alwar (AZDUSS Ltd., Alwar) prepares and markets the following products:

1) Milk (Available in ½ and 1 litre packs)

a. Full cream Milk (Red) Gold It contains FAT- 6% and SNF- 9%
b. Toned Milk (Blue) Taaza It contains FAT-3% and SNF- 8.5%
c. Double toned Milk (Yellow) Smart It contains FAT-1.5% and SNF-9%
d. Skim Milk (Purple) Lite It contains FAT-0.5% and SNF-8.5%

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2) Chhach
a. Plain 500ml
b. Namkeen 250ml
3) Lassi 250ml
4) Ghee ½ litre , 1 litre and 15 litre tin
5) Paneer 200 gm and 1 KG
6) Shrikhand 100 gm Cup
7) Dahi 200 gm Cup
8) Butter (Purchased from Jaipur Dairy, marketed in Alwar) 100 gm and 500 gm
9) Flavored milk (Purchased from Jaipur Dairy, marketed in Alwar) 200 ml Bottle

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From the Managing Director’s Desk:
The Managing Director of AZDUSS Ltd., Alwar is Mr. J.R. Dhaka. His future plans
and strategies for the betterment of the organization are:

“To provide better milk procurement price along

with technical input service to member producers.
To procure maximum milk, provide safe and good
quality milk and milk products at competitive price
to consumers. Thrust will be for better financial
health of milk union”

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Interview of the Managing Director of AZDUSS Ltd., Alwar

I interviewed the Managing Director of the organization Mr. J.R. Dhaka on 22nd April 2007.
Here are the excerpts from the interview.

Question 1: Do you inspect the plant regularly?

Answer: Yes, I inspect the plant daily.

Question 2: What do you observe while inspecting the plant and the office?
Answer: House keeping, hygienic condition, people are at work place.

Question 3: What is the cooperation level of your employees?

Answer: Cooperative

Question 4: What are your future plans and strategies?

Answer: Strengthening milk procurement and milk marketing.

Question 5: What are the promotional activities you conduct to promote your products?
Answer: Mouth publicity, awareness programmes.

Question 6: Do you organize events or seminars for your customers to make them aware
about your products?
Answer: Yes

Question 7: Do you conduct staff meeting for smooth working and better coordination?
Answer: Yes.

Question 8: Does any conflict arise between your staff members? If yes, what do you do
to resolve the conflict?
Answer: Conduct joint meeting.

Question 9: Do you provide training to your staff?

Answer: Yes

Question 10: What measures do you take to ensure smooth functioning of the
organization?
Answer: Discipline, timely payment and personal benefits of staff.

Question 11: Who is responsible for setting prices of Saras products?

Answer: R.C.D.F., state body and milk union.

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Figure 2

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Who’s who of Marketing Department

Hierarchy of Marketing Department

Mr. J.R. Dhaka, M.D.

Mr. Amit Bhattacharya, Plant Manager

Mr. Lal Chand Balai, Dy. Manager

Mr. Mahesh Sharma, Asstt. Manager

Sales Supervisor

Sales Inspector

Root Supervisors

Skilled Workers

Computer Operators

Fourth Class

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DEPARTMENTS OF SARAS DAIRY (AZDUSS LTD., ALWAR)

Marketing Department

According to Peter Drucker, “The aim of marketing is to make selling superfluous.”

Marketing department is one the most important department in every organization.

The marketing activities of the organization include providing support to the milk
unions within and outside the state. The marketing department conducts various
surveys to know the needs and expectations of the customers.

Marketing department is responsible for the sale of liquid milk. It decides the routes by which
the milk is supplied as well as decides the number of booths in district and up country. It also
appoints distributors for supply of milk from dairy plant to different areas of district and up
country market. Presently in Alwar city there are 315 working booths and 10 parlours.
AZDUSS Ltd., Alwar is also marketing various fresh milk products in Saras brand like
chhach, lassi, paneer, shrikhand, dahi and long life products such as ghee, skim milk powder
and whole milk powder.

Various sales promotion techniques are used by marketing department to increase the sale of
Saras products like

 Incentive schemes to dealers

 Consultancy and hiring of marketing agency
 Hoardings
 Glow sign board
 Gift hampers
 Banners
 Advertisement through local cable
 Wall paintings

Human Resource Department

Human resource is the most valuable asset for any organization. A human resource manager is
responsible to build up an effective workforce, handle the expectations of the employees and
make sure that they perform at their best. In management human resource management deals
with people. Each and every organization consists of people and an organization has to utilize
their services, develop their skills, motivate them, and make sure that they remain committed
towards the organization to achieve the goals of the organization.

According to Byars and Rue “Human Resource Management encompasses those activities
designed to provide for and coordinate the Human resources of an Organization.”

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The human resource department manages the personnel serving the organization.
The Human Resource Department performs the following functions:

• Creation of posts and appointments.

• Verification of character and antecedents
• Pay of appointment
• Age limits
• Commencement of service
• Probation of appointments
• Certificate of health
• Record of age
• Consequence of particulars being false or suppressed
• Relinquishment of services by employees and discharge of probationers
• Termination of service of confirmed employee
• Superannuating and retirement
• Option to retire in certain cases
• Requirement of medical examination
• Retirement on medical grounds
• Date of retirement
• Privilege leave on retirement and encashment
• Postponement of retirement pending disciplinary action
• Voluntary retirement
• Abandoning duty after period of leave or otherwise
• Appointment of experts
• Scale of pay
• Calculation of joining time
• Overstay after joining time
• Deputation of employees
• Special appointments
• Entry, exits and search
• Identification, attendance and entry
• Provident fund
• Gratuity
• Leave
• Tours and traveling allowances
• Transfers
• Tours abroad
• Conveyance facilities
• Service record
• Address for communication
• Recall from leave

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• Shift working

Operations Department

The operations department defines the working of the organization.

Processes: The steps for preparation of various products are as follows:

Process of making Ghee

Pasteurizer

Cream Separator
(To separate cream from milk)

Cream Tank
(To collect the cream)

Butter Churn
(Where the cream is churned to make butter)

Melting Vat
(The butter is melted in Melting Vat)

Ghee Kettle
(The melted butter boils in ghee kettle)

(This ghee is collected and stored in settling tank)

Packing Department
(Where the ghee is packed in 1 litre and ½ litre packs)

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Plain Chhach:

This is pasteurized milk which contains 3.1% fat and 8.6% SNF and acidity 1.08%. This milk
is boiled at 40 degree celcius and 3% curd is added. It is diluted by 40% DTM. This is packed
in 500 ml packets and supplied to the market for sale.

Namkeen Chhach:

In plain chhach various ingredients like 0.6% salt, 0.3% jeera, 0.15% rock salt and 0.1%
pepper is added to make namkeen chhach and packed in 200 ml packets and supplied to the
market for sale.

Lassi:

In plain chhach 12% sugar is added to make lassi and packed in 200 ml packets and supplied
to the market for sale.

Paneer Segment:

Milk from SILO

Paneer Vat
(In this Vat the milk contains FAT 5.0% and SNF 9.0%.)
The milk boils in paneer vat at 80 degree celcius and 2% citric acid is added in this milk to
separate FAT, SNF and water

Paneer Hook
(Then curded milk is pressed in paneer hooks for 45 minutes, then this paneer is put into
chilled water at 5 degree celcius)

Packaging Department
(Here the paneer is packed in 1 KG and 200 gm for sale)

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Facilities:

Saras Dairy, Alwar (AZDUSS Ltd., Alwar) provided the following facilities during
operations:-

1) Safety for workers

2) Medical facility
3) First aid facility
4) State of the art technology is used
5) Insurance cover for workers
6) Fire extinguishers are installed in the plant

Finance Department

Financial Management is defined as making available the required funds at an acceptable cost
and making sure that the funds are suitably invested according to the plan. This task is
performed by the Finance Manager of the organization.

Capital Structure Theories

The two sources of long term finance for a firm are

1) Equity Capital: - Equity capital is the owner’s own capital invested in the business.

2) Debt Capital: - Debt capital is the capital raised from other sources which is invested
in business.

Arrange finances through loans from ICICI and HDFC. Earlier loans were taken from Alwar
Gramin Bank.

Final accounts are maintained yearly.

Daily transactions are maintained in one day business.

Budget is prepared by the Accounts Department.

Financial Ratio Analysis

Ratio analysis is a widely used tool of financial analysis. It can be used to compare the risk
and return relationship of a firm of different sizes. It is defined as the systematic use of ratio
to interpret the financial statements so that the strengths and weaknesses of a firm as well as
its historical performance and current financial condition can be determined. The term ratio
refers to the numerical or quantitative relationship between two items/variables.

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Ratio analysis is a systematic use of ratios to interpret the performance and status of the firm.

Current ratio: This ratio reveals the relationship between current assets and current
liabilities.
Current ratio = current assets / current liabilities

Quick ratio/ acid test ratio: The acid test ratio is the ratio between quick current assets and
current liabilities and is calculated by dividing the quick assets by the current liabilities.
Quick ratio = Quick assets / current liabilities

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ABSTRACT/SUMMARY

In this section I present the summary of targets achieved by me and the tasks performed by
me during the SIP training in a tabular form. The supporting documents and the detailed
information are present in the appendix section at the end of the report. This Summary
contains details of tasks done by me from 19th March 2007 to 6th July 2007.

Table 2

S.No. Targets/Tasks Purpose Achievements Date

1. To conduct Survey of To know their Interviewed 500 19th March 2007

500 people opinion about people to 04th July 2007
Saras products
2. To organize plant To make them Organized plant 19th March 2007
visit for 250 people aware of Saras visit for 250 to 30th June 2007
products and people
quality
3. To survey 9 parlours To know their Surveyed 9 08th April 2007 to
and 210 booths problems and parlours and 205 18th June 2007
solve them booths
4. To interview people To know their Interviewed every 23rd April 2007 to
of the marketing satisfaction level. person of the 27th April 2007
department marketing
department.
5. To take demand from To give the Took demand 13th May 2007 to
various stations demand sheet to from 100 stations 04th July 2007
the FGS
department
6. Completed initial As part of the My Initial Report Initial Report 31st
report, synopsis ICFAI was declared the March 2007
interim report, curriculum. best in my batch Synopsis 07th
management thesis April 2007
and final report. Interim Report
12th May 2007
Management
Thesis 05th July
2007
Final report 06th
July 2007
7. Collected secondary To get complete Collected very Got information
data from various knowledge about significant data about milk

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departments Saras from the MIS and procurement
accounts Liquid milk sale,
department turn over
8. Interviewed the To gain an insight Understood the 22/04/2007
Managing Director on the future organization’s
of the organization plans and future plans and
strategies strategies
9. Participated in milk To inform people Learnt how to test 20/03/07 to
testing camp about the quality the milk sample 25/03/07
organized monthly of milk used by for purity and to
them know its
nutritional value
10. I was given the To reduce their It improved my 15/05/07 to
responsibility to work-load. communication 04/07/07
guide 36 MBA skills and
Students. enhanced my
knowledge.

Note:- I got Appreciation Letter from my SIP Company (Alwar Zila Dugdh Utpadak Sahakari
Sangh Ltd.) for good performance two times during the training (One at mid term and second
after completion of training). Copy of Appreciation Letter is enclosed at the end of the report.

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INTRODUCTION

I joined Saras Dairy, Alwar (AZDUSS Ltd., Alwar) as an intern on 19th March 2007. I am
working in the Marketing Department of Saras. My main task was to conduct booth, parlour
and customer surveys.

American Marketing Association (AMA) defines marketing as the process of planning and
executing the conception, pricing, promotion and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational goals. Marketing deals with
products. Product can be in the form of goods, services or ideas. Marketing is not just selling.
According to Peter Drucker, “The aim of marketing is to make selling superfluous.”

Marketing department is one the most important department in every organization. The
marketing activities of the organization include providing support to the milk unions within
and outside the state. The marketing department conducts various surveys to know the needs
and expectations of the customers.
I was assigned the task to survey parlours, booths and customers of Alwar city.
In Alwar city there are 10 Saras parlours and 315 booths that are currently working.

On the basis of my observation till date I expand the name SARAS as follows:

S – Smart
A – Association
R – Responsible for
A – Authentic
S – Services

I define SARAS as a Smart Association Responsible for Authentic Services.

OBJECTIVES
The objectives of the Executive Training at Saras Dairy (AZDUSS Ltd., Alwar) are:

1) To identify the working of the organization.

2) To conduct an exhaustive analysis of the marketing department.
3) To increase the sales of the products that are prepared and marketed by the
organization.
4) To conduct an extensive study of the market place and the customer’s needs.

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5) To understand the core business of the company, organization chart, key personnel in
the company, manufacturing units, marketing channels, financial policies, etc.

6) To do a comprehensive analysis of the company and prepare the SWOT (Strengths,

Weaknesses, Opportunities and Threats) analysis report for the company.
7) To build a good rapport with the company’s staff.
8) To understand the organizational structure and the top management team including the
Chairman, Managing Director and the Officers.
9) To do a practical and live observation of the work place.
10) To understand the attitudes and behavior of the customers.
11) To analyze the sale of Saras milk in Alwar district and find out the factors which are
affecting its sale.

LIMITATIONS

Any research in any field topic gives some new results, discovering new areas etc. but
there are always some limitations thereof.

The limitations that I came across during the course of my training at Saras (AZDUSS
Ltd., Alwar) are:

1) Response Bias: Sometimes the respondents consciously or unconsciously

misrepresent the truth, and then it amounts to response bias.
2) Non response errors: Sometimes respondents do not give a response or give partial
response. It is called non response error. The reason may be lack of knowledge or
unwillingness to answer.
3) Fluctuations in weather conditions: During the survey I came across unfavorable
weather conditions like scorching heat and dust storm.
4) Scarcity of time: There is limited time available each day and lot of tasks have to
completed in a day like preparing reports, conducting surveys, spend time at the office
to gain knowledge, etc.
5) Different tastes and preferences: The study was conducted in the urban areas and it
cannot be applied to the rural areas because the tastes and preferences of people of
rural and urban areas differ vastly.

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6) Inaccurate information: The answers given by the respondents are not always
correct and may be misleading.
7) Time consuming: It is very time consuming to go door to door in order to conduct a
survey of various homes and find their views and study their buying behavior.
8) Small sample size: The sample size is small and it may not actually represent the
whole population.
9) Difficult to convince people: Sometimes it becomes very difficult to convince people
as many of them are not at all aware of Saras products and some are very stubborn. It
becomes slightly difficult to convince such people but it is a challenging task and a
good learning experience.
10) Limited information: Being a trainee, it became difficult to obtain some confidential
information about the organization. This sometimes became a hurdle during the
training.
11) Non availability of person: In some cases the person is not present at home.
12) Dependence on respondents’ views: The data collected is totally dependent on
respondents’ views, which could be bias in nature.
13) Difficult to recall: It is not possible and economically viable to revisit a person who
was not present at home.
14) Lack of educated and cooperative respondents: Personal interviews are successful
only when the respondents are educated.

The limitations that Saras Dairy comes across are:

1) Low availability of raw milk in summers.

2) Dependence on milk producers.
3) Dependence on monsoons.
4) Milk can be produced not manufactured.
5) Increasing competition in dairy industry.

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BODY OF THESIS

Saras (AZDUSS Ltd., Alwar) is a very large and reputed organization and it gives me
immense pleasure and satisfaction to be associated with such a reputed organization.
The organization maintains state of the art quality and hygiene standards.

MAIN TASKS AND TARGETS

1) To conduct a comparative study of the growth of Saras (AZDUSS Ltd., Alwar) for
three consecutive years.
2) To conduct survey of Saras parlours and booths to know their problems and sort them
out. To get feedback from Saras parlours and booths.
3) To get feedback from customers and find their problems, satisfaction level, take their
suggestions and help AZDUSS Ltd., Alwar to implement those suggestions.
4) To take responses from people who do not use Saras products and find the answer to
the question, “Why they are not using Saras products”.
5) To judge the satisfaction level of the employees of AZDUSS Ltd., Alwar.
6) To do entries of daily supply in the supply register.
7) To take demand of various Saras products from parlour/booth owners and distributors
through phone or personal contact in the prescribed proforma. To make maximum
people aware of Saras.
8) To organize free testing camps to test the purity of milk.
9) To increase the sale of Saras products.
10) To implement human resource management techniques to increase the satisfaction
level of the employees of AZDUSS Ltd., Alwar.
11) To interview 500 homes in four months to know their views and opinions about Saras
products.
12) To organize plant visit for 250 people in four months to show them the plant and tell
them the processes that the Saras milk undergoes and how different Saras products are
prepared. The purpose of organizing such visits is to tell the people about the many
advantages that Saras offers them like

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a. Hygienic plant
b. High nutritional value of its products
c. Good storage facilities
d. Cleanliness of the plant and storage area
13) I was given the responsibility to guide 36 MBA students (working as interns in Saras
Dairy, Alwar) and assign them their tasks and duties on a weekly basis.

Targets and Tasks Assigned to me

Table 3

S.No. Targets/Tasks Date

1. To conduct Survey of 500 people 19th March 2007 to 04th July 2007

2. To organize plant visit for 250 people 19th March 2007 to 30th June 2007

3. To survey 9 parlours and 210 booths 08th April 2007 to 18th June 2007

4. To interview people of the marketing 23rd April 2007 to 27th April 2007
department
5. To take demand from various stations 13th May 2007 to 04th July 2007

6. Completed initial report, synopsis interim Initial Report 31st March 2007
report, management thesis and final report. Synopsis 07th April 2007
Interim Report 12th May 2007
Management thesis 05th July 2007
Final report 06th July 2007
7. Collected secondary data from various Got information about milk procurement,
departments Liquid milk sale, turn over
8. Interviewed the Managing Director 22nd April 2007
of the organization
9. Participated in milk testing camp organized 20th March 2007 to 25th March 2007
monthly
10. I was given the responsibility to guide 36 15th May 2007 to 04th July 2007
MBA Students.

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My Daily Schedule
My tasks at the On Job Training were to study the working of the Saras plant, gather complete
information about Saras, conduct market and booth surveys and organize visits for people to
see the Saras plant.

The daily schedule that I follow to complete these tasks is:

 Sign in at the company office at 09:30 AM
 Make a plan for the whole day between 09:30 AM to 10:30 AM.
 Go to the field to conduct market survey and booth survey from 10:30 AM to 12:30
PM.
 Collect information about the Saras dairy from various departments from 12:30 PM to
01:30 PM.
 Lunch time is from 01:30 PM to 02:30 PM.
 Organize visits for the visitors from 02:30 PM to 03:30 PM.
 Visit the plant to understand the working of the plant from 03:30 PM to 04:30 PM.
 Discuss with my company guide the tasks for the next day from 04:30 PM to 05:00
PM.
 Sign out of the company office at 05:00 PM.

Note:
1. Every Saturday went to Jaipur to submit my weekly report and attend the session
organized by ICFAI National College, Jaipur for student development.
2. Sunday was weekly off.

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Performance Analysis
I started my SIP training at Saras dairy (AZDUSS Ltd., Alwar) on 19 th March 2007. I was
given the responsibility of surveying 210 booths, 9 parlours, 500 people and organize plant
visit for 250 people.

I was asked to increase awareness about Saras products amongst the general public by
organizing plant visits for them. For this I organized plant visit for many people and also
mass visits for

Another task assigned to me was to be a part of the milk testing camps organized by the
marketing department of Saras (AZDUSS Ltd., Alwar). For this we went to various locations
of Alwar city and tested the milk samples brought by the general public. We provided them
instant results and explained them the advantages of using Saras products. Many of them
were convinced that Saras products are better as compared to the products provided by local
vendors. This has increased the sale of Saras products, specially milk.

Table 4

S.No.
Factor Target Performance Variance Reason

1. Plant visits 250 250 Nil -

2. Door to door surveys 500 500 Nil -
3. Booth surveys 210 205 5 Due to lack
of time
4. Parlour surveys 9 9 Nil -
5. Training to M.B.A. 36 36 Nil
students
6. Participation in free 6 days Full Nil
milk testing camp camp attendance

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RESEARCH DESIGN/METHODOLOGY

Resarch design is defined as a systematic and objective process of gathering, recording and
analyzing data that provides information to guide business decisions. The process of business
strategy can be divided into three phases – planning, execution and report preparation.
The planning phase begins from problem/opportunity identification and leads to selection of
the sampling procedure. Data collection and evaluation can be described as the execution
phase of the business research process, while report generation can be considered as the last
phase.

Steps in the research design process

Identifying and Defining Problem/Opportunity

P
L Planning the strategy
A
N
N
I
N Selecting the method of strategy
G

Selecting a Sampling Procedure

E
X Data Collection
E
C
U
T
I Evaluating the Data
O
N

REPORT Preparing and Presenting the Report

PREPRATION

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Marketing research is defined as the formal process of collecting information, analyzing the
result, communicate the findings and implementation in terms of marketing actions. Analysis
of information is used in evolving some marketing and financial decisions.

The research methodologies used to collect data are of two types:

1) Primary method: In this type of method data is collected with the help of face to face
interaction with a person.

2) Secondary method: It does not involve face to face interaction. In this type of method
data is collected through other sources like internet, books, etc.

In this project I have used both the methodologies to collect the data.

Primary Method:

1) I have used primary method to collect data from various departments of Saras Dairy,
Alwar (Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar) by talking to heads
and staff members of each department.

2) Data is also collected by preparing a questionnaire and asking the respondents to fill
up the questionnaire.

3) Data is also collected by conducting one to one interviews.

Secondary Method:

1. I have used secondary method to collect some data from the annual accounts of the
company Saras Dairy, Alwar (AZDUSS Ltd., Alwar)

2. Data is also collected from the Annual publication of Saras (Magazine)

Research methodology adopted for the study

During my research I have tried to

 Assess the brand image that the company holds in the minds of the customers.
 Assess the impact of promotional activities.

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METHOD OF SURVEY
Survey Research

Research is the search for, and retrieval of, existing, discovery or creation of new information
or knowledge for a specific purpose. Research has many categories, from medical research to
literary research. Marketing research is a form of business research.

A survey research is defined as the method of collecting information by asking a set of pre
formulated questions in a predetermined sequence in a structured questionnaire to a sample of
individuals drawn so as to be representative of a defined population.

Some of the common methods of conducting surveys are:

 Personal Interviews: Personal interviews are characterized by the presence of four

entities i.e. the researcher, the interviewer, the interviewee and the interview
environment.

 Telephonic Interviews: Telephonic interviews are judged as one of the best cost-
effective alternatives to face-to-face interviews and mail surveys.

 Self-administered Interviews: Self administered interview is an interview in which

the questionnaire is filled out without the intervention of an interviewer.

 Mail Surveys: Mail survey is a survey where questionnaire is sent to the qualified
respondents by e-mail.

Method of survey research used by me: Personal Interview (Door to Door

Interview)

Reasons for Choosing Personal Interview:

I chose the personal interview method for survey research due to the following reasons:

1) Feedback Opportunities: In face to face interview, doubts of the interviewee can be

clarified. Also the respondent can be assured confidentiality.

2) Probing: The interviewer in a personal interview can explore the respondent for
complex answers. The detailed information so obtained is very useful to the
researcher.

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3) Length of Interview: The length of interview is better in personal interviews. In a

personal interview, chances of the respondents answering all the questions are greater
as compared to other non-personal survey methods. Personal interviews lead to
improvement in the quality of responses.

Questionnaire Design
A questionnaire is a set of questions to be asked from respondents in an interview, with
appropriate instructions indicating which questions are to be asked, and in what order.
Questionnaires are used in various fields of research like survey research and experimental
design.

Questionnaire design is a vital issue in interviewing. A properly designed questionnaire can

tap the necessary information from the respondent. Therefore, researchers always design a
tactful set of questions to probe and prompt the interviewee to give useful answers.
Questionnaires fall under various categories, such as structured, unstructured, disguised and
undisguised.

In the questionnaire I have used two types of questions:

Open Ended Questions

In open ended question design each question has a series of lines (or a blank space) in which
the respondents are encouraged to write, in their own words, how they feel about the topic in
question.

Close Ended Questions

Closed question provide a set of answers that the designer of the survey (based on prior
experience and responses in the pilot survey) considers will accommodate the majority of
potential responses.

A questionnaire serves four functions:-

 Enables data collection from respondents

 Lends a structure to interviews
 Provides a standard means for writing down answers
 Help in processing collected data

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The various steps in questionnaire design are:-

1) Preliminary decisions
2) Question content
3) Response format
4) Question wording
5) Questionnaire sequence
6) Questionnaire pre-test, revision and final draft

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REVIEW OF LITERATURE

The detailed view of the related work did in the past by others

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

PERFORMANCE AT GLANCE
Table 5

S.No. Particulars 01-02 02-03 03-04 04-05 05-06 06-07

1 Registered DCS 497 532 609 681 742 795

2 Functional DCS 368 442 465 564 599 632

3 Prop. DCS (CC) 366 388 454 451 462 443

4 DCS Membership 59588 62966 66217 70281 76931 82655

5 Milk Procurement (per day) 87.74 88.79 97.82 108.9 89.65 79.54

6 Rate / KG (Rs) 9.98 10.77 13.56 12.29 13.22 15.05

7 Milk payment (Rs.Lakhs) 3195 3491 4856 4884 4325 4370

8 City Supply (TLPD) 15.5 18.62 29.52 35.71 67.03 132.69

9 M.D. Supply (TLPD) 75.71 101 144.78 143.5 120.05 0

10 Ghee Sale Total MT 817 652 485.45 1056.72 683.16 941.63

11 Ghee Sale (DCS) MT 104 79 80.66 203.48 213.83 225.1

12 Cattle Feed Sale (MT) 3035 3363 4636 6333 7001 6921.35

13 Turn Over (Rs. Crore) 53.6 59.57 93.77 96.33 95.8 99.15

14 Net Profit (Rs. Lakhs) 64.14 69.43 67.56 8.88 2.25 57.4

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Table 6
Table showing Saras Milk Supply of Alwar City with percentage growth
Month 00-01 01-02 Gro. % 01-02 02-03 Gro. % 02-03 03-04 Gro. %
Apr 10259 9788 -4.59 9788 10214 4.35 10214 13094 28.20
May 9757 10944 12.17 10944 12946 18.29 12946 15341 18.50
Jun 9620 9862 2.52 9862 11683 18.46 11683 16806 43.85
Jul 10434 9975 -4.40 9975 12090 21.20 12090 17114 41.56
Aug 10431 10283 -1.42 10283 11322 10.10 11322 15654 38.26
Sep 9337 10255 9.83 10255 9890 -3.56 9890 16368 65.50
Oct 7910 8361 5.70 8361 9985 19.42 9985 13530 35.50
Nov 6699 7818 16.70 7818 8848 13.17 8848 11777 33.10
Dec 5883 7329 24.58 7329 8451 15.31 8451 10682 26.40
Jan 5733 6805 18.70 6805 8275 21.60 8275 10282 24.25
Feb 6904 8063 16.79 8063 9716 20.50 9716 11375 17.07
Mar 7280 8978 23.32 8978 10857 20.93 10857 12591 15.97
Total 10024 10846 120 108461 124277 180 124277 164614 388
Avg. 8354 9038 8 9038 10356 15 10356 13718 32
7 1
Month 03-04 04-05 Gro. % 04-05 05-06 Gro. % 05-06 06-07 Gro. %
Apr 13094 14181 8.30 14181 14683 3.54 14683 18855 28.41
May 15341 15318 -0.15 15318 18668 21.87 18668 19975 7.00
Jun 16806 16558 -1.48 16558 18371 10.95 18371 20888 13.70
Jul 17114 15623 -8.71 15623 16857 7.90 16857 21958 30.26
Aug 15654 14357 -8.29 14357 17102 19.12 17102 19572 14.44
Sep 16368 12392 -24.29 12392 15770 27.26 15770 20807 31.94
Oct 13530 13005 -3.88 13005 15179 16.72 15179 18197 19.88
Nov 11777 10828 -8.06 10828 14026 29.53 14026 16542 17.86
Dec 10682 10208 -4.44 10208 13177 29.09 13177 16012 21.51
Jan 10282 10807 5.11 10807 13352 23.55 13352 16279 21.92
Feb 11375 11640 2.33 11640 15241 30.94 15241 18034 18.33
Mar 12591 14110 12.06 14110 15314 8.53 15314 18593 21.41
Total 16461 15908 -31 159087 187740 229 187740 225712 247
Avg. 13718 13252 -3 13252 15645 18 15645 20519 20
4 7

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EMPIRICAL ANALYSIS

Each day is a new learning experience and so was the case during my Executive Training.
Every day I learnt something new. During my training I learnt the following things:
1) First and foremost I learnt to practically apply the knowledge gained through theory
classes and bridge the gap between academic institution and corporate world.

2) Understood the importance of job responsibility.

3) How coordination is maintained between different departments like marketing, human

resource, administration.

4) Learnt the ways to increase milk procurement.

5) Understood the distribution network adopted by Saras.

6) Understood how the management keeps its employees satisfied and retain them.

7) The processes that the milk passes through before reaching the final consumers.

8) The processes by which various milk products like ghee, butter, dahi, paneer, chhach,
lassi, shrikhand, etc. are prepared.

9) The marketing strategies adopted by Saras Dairy, Alwar (AZDUSS Ltd., Alwar).

10) Learnt how to conduct door to door interviews. Initially I felt slightly uncomfortable
conducting the interviews but with time I learnt a lot and became very comfortable
conducting door to door personal interviews.

11) Learnt to participate in milk testing camps and test the milk sample for purity.

12) Learnt to organize plant visit for visitors.

13) Learnt to take demand of Saras products from various stations through phone or
personal contact in the prescribed proforma.

14) Learnt how to build a good rapport with the staff. I was very successful in building
good rapport with the staff of the marketing department and other departments of the
organization as well.

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 Final SIP Report

I worked as an intern in Saras dairy (AZDUSS Ltd., Alwar) which processes and markets
milk products which are quickly perishable. Therefore the marketing strategy of Saras is very
different from others. In this type of organization it is necessary to maintain a balance
between demand and supply and I learnt very well how to maintain a balance between
demand and supply. During the four month association with Saras I deeply understood many
facts about milk which were not in my knowledge earlier.

Frequently Thought Questions

Many times I used to think that what is milk? How is it useful for us? What are its
constituents and many more? During my association with Saras I found answers to all my
questions and queries.

Question 1: What is milk?

Answer: Milk is a lacteal secretion from the mammary glands of a healthy milky animal free
from colostrum. Milk has got mainly three constituents – fat (3 to 6%), snf comprising of
proteins, lactose, minerals etc (8 – 9%) and water (85%).

Question 2: Is Saras milk prepared from powder?

Due to the calving cycle, cow / buffalo remain in milk for 8-9 months in a year. The high
yielding and low yielding period is different in case of cow or buffalo, but generally winters
are called flush season due to high production of milk whereas summers are called lean
season when production is less. On the other hand, the demand is almost constant through out
the year. Hence during flush season, fat part of milk is preserved in form of white butter and
SNF in form of powder after evaporating water. These two constituents are mixed and
processed during lean season to meet the demand. So powder is nothing but preserved SNF /
fat of milk.

Question 3: How is milk useful for us?

Milk is nature’s perfect food for all ages. It has almost all the vital nutrients needed for
growth and well being of human body. Milk is the richest natural source of calcium and
essential amino acids. It is good for bone formation. It is particularly beneficial for people
recovering from sickness, for sportsmen, for old people, for pregnant women and for growing
children. The doctor recommends a minimum daily intake of 250 ml. Or one and a half glass
of milk for every person. Normal cow milk has 4%fat and buffalo milk 6% fat. There is
another important constituent of milk- solids not fats these solids – not – fat. (or SNF, as it is
commonly called) comprise of proteins, minerals, carbohydrates and vitamins. For milk to be
nutritionally balanced, it has to contain both fat and solids- not- fat in right proportion.

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 Final SIP Report

Question 4: Why pasteurized milk is better than vendor’s milk?

Saras milk strictly conforms to PFA standards to comply with the legal requirement and to
provide wholesome nutritive food to the consumers. This means when we are buying Saras
milk, we are sure we are getting value for our money. We are sure of getting the “nature’s
perfect food” full 500 ml, 100ml, in every pack. We are sure of getting milk which has longer
life because of its superior bacteriological quality. The loose milk available from local
vendors in Alwar city often does not conform to PFA standards. It has fat and less solid-not-
fat than required. If our milk contains 0.5% less fat or SNF, we are paying up to 60 paise per
pouch extra. Besides, it is not uncommon to find artificial preservatives, not permitted by law
being added to loose milk. This has been authenticated in a recent campaign run by this
Sangh, in which it was found that more than 60% to 70% of milk sold by private traders and
loose milk contain artificial preservatives, not permitted by law. By compromising on the
quality of milk we may be depriving our children of essential life building proteins and
nutrients that only pure, high quality milk offers.

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“SO, INSIST ON SARAS MILK JUST !!!!!

BECAUSE ONLY SARAS MILK GIVES YOU

TRUE VALUE FOR YOUR MONEY.

IT IS PURE, FRESH, NUTRITIOUS, HYGIENIC AND CREAMY.”

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 Final SIP Report

FINDINGS

The following pie charts show the opinion of people about various Saras products.
Figure 3

People's opinion about Dahi

13%

36% Like very much

15%
like somew hat
neutral
dislike somew hat
dislike very much

18%

18%

Figure 4

People's opinion about Paneer

5%
5%

10%
Like very much
like somew hat
neutral
51%
dislike somew hat
dislike very much
29%

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 Final SIP Report

Figure 5

People's opinion about Ghee

3%
10%

12% Like very much

like somew hat
neutral
dislike somew hat
13% 62% dislike very much

Figure 6

People's opinion about Lassi

10%

14% Like very much

44% like somew hat
neutral
8% dislike somew hat
dislike very much

24%

Note: The graph only shows the opinion of the people I surveyed and not of the general
public.

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Survey Results

During the course of SIP training I conducted survey of 9 Saras parlours, 205 booths. The
survey was conducted to judge their satisfaction level. The results of the survey are presented
graphically using pie chart as follows:

Figure 7

Survey result of 214 Booths/ Parlours

Figure 8
12 2
6% 1%
35
16%

highly satisfied
102 very much satisfied
48% fairly satisfied
unsatisfied
highly unsatisfied

63
29%

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I organized plant visit for 250 people during the four months of my SIP training. I explained
them the working of Saras plant. I also told them how Saras products are better than the
products supplied by local vendors and the advantages of using Saras products. Each and
every person gave his/her response and I graphically present their responses using pie chart as
follows:

Figure 8

Responses of 250 people who visited the plant

7
11
23 4% 3%
9%

Highly convinced

29 Very much convinced

12% 119
48% Fairly convinced
Unconvinced

Highly unconvinced

Can’t say

61
24%

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I surveyed 500 people. The people I interviewed were randomly selected from various
colonies of Alwar. Every person has a different opinion, some say Saras products are
excellent, some say they are good, some feel they are poor and some find them average. I
present the result of the survey graphically using pie chart as follows:

Figure 9

Survey result of 500 people

12 14
21 2% 3%
4%

66
13% Excellent

Very good

Good

Poor

Very poor
289
58% Can’t say
98
20%

Page 49 of 73
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Table 7

Table showing change in price of different Saras products

Product Price before Price as on Price as on Price as on 01st

01st April 07 07th April 07 01st May 07 July 07 and
and onwards and onwards onwards
FCM (Gold) Rs.20 Rs.21 per litre Rs.22 per litre Rs.23 per litre

Toned Milk (Taaza) Rs.16 Rs.17 per litre Rs.18 per litre Rs.19 per litre
Double Toned Milk (Smart) Rs.14 Rs.15 per litre Rs.16 per litre Rs.17 per litre
Skimmed Milk (Lite) Rs.13 Rs.13 per litre Rs.13 per litre Rs.15 per litre
Ghee (1 litre) Rs.160 Rs.165 Rs.170 Rs.170

Dahi (200 g) Rs.6 Rs.7 Rs.8 Rs.8

Paneer (200 g) Rs.20 Rs.22 Rs.25 Rs.25

Paneer (1 Kg) Rs.100 Rs.110 Rs.120 Rs.120

Lassi (250 ml) Rs.5 Rs.6 Rs.7 Rs.7

Chhach (Plain) 500 ml Rs.6 Rs.7 Rs.7 Rs.7

Chhach (Namkeen) 250 ml Rs.4 Rs.5 Rs.6 Rs.6

Shrikhand Plain (100 g) Rs.7 Rs.7 Rs.8 Rs.8

Shrikhand Kesar Pista (100 g) Rs.8 Rs.8 Rs.9 Rs.9

Flavored Milk (200 ml) Rs.10 Rs. 10 Rs.10 Rs.10

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During the course of my training I surveyed some people who for some or the other reason
are not using Saras products or are unable to use Saras products. The reasons they gave are
presented below in a tabular form.

Reasons of those people who are not using Saras products

Table 8

% of the people
S.No. Factor
surveyed
1 Absence of home delivery 23.6

2 Unknown about Saras products 10.2

3 Products are expensive 8.4

4 Priority to buffalo’s milk 10.8

5 Possess bad smell 5.8

6 Non availability of booth in the vicinity 6.6

7 Use Saras milk in case of emergency only 5.8

8 Faith in long association with the milkman 9.2

9 Not able to pay in cash 8.2

10 Consumers own cows and buffalos 4.8

11 No price consistency 6.6

TOTAL 100

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As my project title is “A study of performance and growth of Saras Dairy, Alwar”,

therefore I did a comparative analysis of many factors related to performance and growth of
the organization like number of registered societies, milk procurement, liquid milk sale and
turnover from 2001-02 to 2006-07. I present the statistical figures below using column chart.

Page 52 of 73
 Final SIP Report

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

REGISTERED DCS
Figure 10

900

800

700

600
NO.

500 Series1
400 Series2
300

200

100

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Series1
Series2 497 532 609 681 742 795

YEAR

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 Final SIP Report

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

MILK PRODUCT MANUFACTURE
Figure 11

QTY. IN M.T. 1500

1000 GHEE
SMP
500 WMP

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

GHEE 720 678 607 612 754 1162

SMP 207 132 12 243 399 1118
WMP 290 342 255 80 197.5 155
YEAR

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ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

MILK PROCUREMENT
Figure 12

90

80
QTY. 000,Kgs

70
2001-02
60
2002-03
50 2003-04
40 2004-05
2005-06
30
2006-07
20

10

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Series1 59.59 62.97 66.22 70.28 76.93 82.66

YEAR

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ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

LIQUID MILK SALE
Figure 13

140

120
000' LIT PER DAY

100 2002-03
2003-04
80
2004-05
60
2005-06
40 2006-07
20

0
2002-03 2003-04 2004-05 2005-06 2006-07
Series1 18.6 29.56 35.81 67.03 132.69
YEAR

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 Final SIP Report

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

TURN OVER
Figure 14

120

100
2001-02
80 2002-03
2003-04
Crore

60
2004-05
40 2005-06
2006-07
20

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Series1 53.6 59.57 93.77 96.33 95.8 99.15

Year

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My observation about various Saras products with respect to people’s liking

Table 9

Product

Product Excellent Very Good Good Poor Very Poor

FCM (Gold) √
Toned Milk (Taza) √
Double toned milk √
(Smart)
Skimmed milk (Lite) √

Ghee √

Dahi √

Paneer √

Lassi √

Chhach (Plain) √

Chhach (Namkeen) √

Shrikhand (Plain) √

Shrikhand (Kesar Pista) √

Flavored Milk √

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My Observation of Saras Dairy (AZDUSS Ltd., Alwar)

Now I have completed four months as an intern in Saras Dairy (AZDUSS Ltd., Alwar) and
during these four months as a trainee I carefully observed various aspects of the organization.
Here, I am presenting my observations and findings using the Constant Sum Scale. I have
divided a total of 100 points into various attributes that I observed. The maximum marks that
can be allotted to a factor are 10.

The various attributes that I observed and the points I allocated to each observation are
presented below in tabular format.

Table 10

S.No. Characteristic of Saras Dairy Number of Points

1 Variety of milk provided by Saras Dairy 9

2 Prices are affordable 6
3 Round the clock availability 0
4 Quality and hygiene 10
5 Enough range of FMP 8
6 Staff is cooperative 9
7 Follow the ISO 9001-2000 norms 10
8 Give weightage to suggestions 8
(Suggestions are always welcome)
9 Customer awareness camps and plant visits 7
10 Employee satisfaction 8
11 Market reputation 9
12 Advertisement and publicity 4
13 New product development 5
14 Channels of marketing 7

Total 100

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SWOT ANALYSIS OF SARAS DAIRY (AZDUSS Ltd., ALWAR)

Table 11

STRENGTHS WEAKNESSES

 The products are very pure  Low availability of raw milk

 The products are extremely  Dependence on farmers
hygienic  Reduced milk supply in
 The plant is ISO 9001- 2000 summers
and HACCP certified

OPPORTUNITY THREATS

 Milk is an essential  Milk can be produced not

commodity which every manufactured.
body uses.  There is always a possibility
 There is no competitor of of a competitor entering the
packed milk in Alwar. market.

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CONCLUSIONS

During the four months of my training at Saras Dairy (AZDUSS Ltd., Alwar) and the
surveys I conducted till date, I reached the following conclusions:

1) Saras (AZDUSS Ltd., Alwar) is a very large and reputed organization and it gives me
immense pleasure and satisfaction to be associated with such a reputed organization.

2) The organization maintains state of the art quality and hygiene standards.
3) A coin has two sides and it holds true for every organization, no matter how large or
reputed it is, there are always some small shortcomings along with the plus points of
the organization and Saras is no different.

4) Prices of Saras products have been hiked three times during my SIP. I observed that
due to frequent price hike people are losing faith in Saras and they think that Saras is
very unreliable and has no consistency in price. This factor has resulted in fall in sales.

5) Many people do not have faith in Saras products. They still believe that the products
made by the local dairies are better.

6) Some people feel that Saras products possess bad smell and that’s why they don’t use
Saras products.

7) Saras parlours/booths also face problems because sometimes there is no timely supply
of products to them. They receive the products late in the day and then these products
have to be sold the next day. People do not accept such products.

8) People believe that the Saras products are costly.

9) During the course of customer survey I also found the general public’s opinion about
different Saras products.

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RECOMMENDATIONS

On careful observation of the Saras dairy during the training period, I have the
following suggestions for Saras dairy, which on proper implementation may provide a
big boost to it.

1) Home delivery facility should be provided.

2) Increase in advertisement and publicity.

3) Motivation program for booth and parlour owners.

4) All information regarding Saras dairy and its products should be available on internet.

5) The policy that an organization must follow in order to run successfully is…..

Golden Advice for Saras

Rule #1
The customer is
always right!

Rule #2
If the customer is
ever wrong, reread
Rule #1

Figure 15

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6) Marketing department should be well furnished and attractive.

7) There should be consistency in price.

8) Alwar dairy should give milk producers competitive prices and facilities.

9) Glow sign boards should be provided to booth and parlour owners.

10) New products should be launched like ice-cream.

11) An organization like Saras should have a reception and a receptionist.

12) To popularize ‘Shrikhand’ free samples may be distributed at some public places.

13) Inspection and frequent check of booths and parlours.

14) Good coordination between marketing department and booths/parlour owners.

15) Departments should be interconnected through computer network.

16) Employee identification card should be provided to employees of Saras.

17) New technology should be adopted from national and international company’s experts
in the field.

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APPENDIX

I prepared many questionnaires to perform the survey task assigned to me. These
questionnaires were first shown to the officials of the Saras dairy and after their acceptance
and consent they were implemented to do the assigned task. The various questionnaires
prepared by me to conduct surveys and interviews are enclosed in this section.

Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar

Date:_________

Questionnaire for Customers

1) Name : ___________________________________
2) Husband’s Name: ____________________________________
3) Address : ___________________________________
___________________________________
___________________________________
4) Profession : ___________________________________
5) Age : ___________________________________
6) Are you aware about Saras? Yes No
7) Number of family members : _______________
Adults __________ Children _________
8) Do you use Saras Products : Yes No
9) If yes which products do you use?

Milk : Full Cream Toned Double Toned Skimmed

Butter Dahi Ghee Paneer s Shrikhand

Chhach : Plain Namkeen Lassi : Sweet

10) Are you satisfied with quality of Saras products?

Yes No
11) Do you think that Saras products can be improved further?
Yes No
12) Do you have any suggestions for further improvement of Saras products?
__________________________________________________________________
13) Which is your nearest Saras booth?
______________________________________________________________

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14) Are number of booths sufficient in your locality?

Yes No
15) Are all products available at the booth?
Yes No
16) Do you think Saras should start the system of home delivery?
Yes No
17) Do you want Saras to introduce any new product?
Yes No
If yes, which types of products?
____________________________________________________________
18) Are you satisfied with the price of Saras Products?
Yes No
If not why and what should be the right price?
_______________________________________________________________
19) Any Suggestions
__________________________________________________________________

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Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar

Questionnaire to Obtain Feedback from the Booth/Parlours
1) Name of the Booth/parlour: _________________________________
2) Address : __________________________________
__________________________________
__________________________________
3) Products available with the booth/parlour
Milk : Full Cream Toned Double Toned Skimmed
Butter Dahi Ghee Paneer Shrikhand
Chhach : Plain Namkeen Milk Cake
Lassi : Sweet
4) Do you get timely supply from Saras?
Yes No
5) Do you get proper storage facilities to store the products?
Yes No
6) Average daily sales of the products?
Milk : _____________________________
Dahi : _____________________________
Ghee : _____________________________
Chhach : _____________________________
Lassi : _____________________________
Paneer : _____________________________
7) What measures do you take to improve sales?
_____________________________________________________________________
8) Does management of Saras help you to improve sales?
Yes No
9) What support do you expect from the management of Saras to boost sales?
_____________________________________________________________________
10) What source do you use to convey your demand to the plant?
_____________________________________________________________________
11) Does Saras give you any credit facility and what are the payment terms and
conditions?
_____________________________________________________________________
12) What are the timings of your booth/parlour?
_____________________________________________________________________
13) How much manpower is required to run the booth/parlour?
______________________________________________________________________

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14) Are you satisfied with the profit margins you get?
Yes No
15) Do you have arrangement of home delivery for regular customers?
Yes No
16) How do you collect your payment from customers, monthly or cash and carry?
_____________________________________________________________________
17) Do you have any alternative source of electricity in case of power failure to keep
your products safe?
Yes No
18) Do you sell other products (like bread, biscuits, eggs, etc.) along with the Saras
products?
Yes No
19) Are you able to sell the received products daily or you are left with some unsold
products?
Yes No
20) What do you do of the unsold products?
______________________________________________________________________
21) How do you handle the excessive demand for any product?
______________________________________________________________________
22) Does the marketing department of Saras help you in fulfilling the excessive demand?
______________________________________________________________________
23) Does the marketing department of Saras ask about your problems?
Yes No
24) Does the marketing department of Saras solve your problems?
Yes No
25) Any suggestions:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

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Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar
Questionnaire to Obtain Employee Feedback
1) Name : ______________________________________
2) Department : ______________________________________
3) Designation : _____________________________________
4) Address : ______________________________________
______________________________________
______________________________________
5) No. of years in service: ______________________________________
6) Timings : ______________________________________
7) Job responsibility : ______________________________________
8) Satisfaction Level : Extremely Not Satisfied Not Satisfied
Satisfied Very Satisfied Extremely Satisfied
9) Facilities Provided: Medical L.T.A. Loan Facility
Conveyance Allowance Traveling Allowance
House Rent Allowance Welfare Schemes
10) If you get better remuneration and opportunity in some other company will you
leave Saras Dairy, Alwar?
Yes No
11) How much time do you devote for field work in a day?
________________________________________________________________________
12) Are you satisfied with the policies of the company with respect to customer?
Yes No
13) What steps do you take to fulfill the demand for milk when supply is short?
________________________________________________________________________
14) What are the means of advertising you use?
Electronic media Print media Banners Hoardings Door to door
marketing
15) Do you set well defined targets for each booth?
Yes No
16) What are the timings of the booths?
________________________________________________________________________
17) Do you prepare each product marketed by you at the Alwar plant?
Yes No

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18) Which products do you purchase from other plants of Saras Dairy?
________________________________________________________________________
19) What do you do with the unsold products left after the date of expiry?
________________________________________________________________________
20) How do you check the synthetic milk producers operating illegally in the market?
________________________________________________________________________
21) How do you prevent duplicacy of your brand?
________________________________________________________________________
22) Are you exploring the market outside Rajasthan? If yes, where?
________________________________________________________________________
23) Do you get any incentives for meeting the targets?
________________________________________________________________________
24) What mechanism do you use to set prices of your products?
________________________________________________________________________
25) Do you take feedback from the customers?
Yes No
26) Do you organize any camp to solve the problems/grievances of the customers?
Yes No
27) Do you work on holidays also or do you adopt rotation system?
________________________________________________________________________
28) Do you have any plans to launch new products in the market in the near future?
Yes No
29) Do you see any difference between your product and the product coming from the
milk producers?
Yes No

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Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar

Questionnaire for the Managing Director of the Organization
1) Name : ____________________________________
2) Address : ____________________________________
____________________________________
____________________________________
3) Phone No. : ____________________________________
4) Timings : ____________________________________
5) No. of years in AZDUSS Ltd., Alwar as MD
______________________________________________________________________
6) Place of work before coming to Alwar
______________________________________________________________________
7) Are you satisfied with the working of Alwar Dairy plant?
Highly Satisfied Considerably Satisfied Reasonably Satisfied
Unsatisfied Highly Unsatisfied
8) Number of staff members
Permanent Contract
9) Do you inspect the plant regularly?
Yes No
10) What is the time interval between two inspections?
_____________________________________________________________________
11) What do you observe while inspecting the plant and the office?
_____________________________________________________________________
12) What is the cooperation level of your employees?
Non Cooperative Cooperative Extremely Cooperative
13) What are your future plans and strategies?
_____________________________________________________________________
14) What are the promotional activities you conduct to promote your products?
_____________________________________________________________________
15) Do you organize events or seminars for your customers to make them aware about
your products?
Yes No
16) Do you conduct staff meeting for smooth working and better coordination?
Yes No

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17) Does your staff work over time? If yes, do you pay extra money for that?
_____________________________________________________________________
18) Does any conflict arise between your staff members? If yes, what do you do to
resolve the conflict?
____________________________________________________________________
19) Do you reserve the power to provide monetary benefit or incentive to your staff for
good performance?
Yes No
20) Do you provide training to your staff?
Yes No
21) Do you take feedback from employees?
Yes No
22) How do you keep record of your data?
Electronically Manually Both
23) Do you organize any camps or meetings where Saras parlour and booth owners are
involved and their problems can be heard and solved?
Yes No
24) What measures do you take to ensure smooth functioning of the organization?
_____________________________________________________________________
25) Do you provide any additional benefit/incentive to booth/parlour owners?
Yes No
If yes, what are the conditions that need to be fulfilled by the parlour/booth owners?
___________________________________________________________________
26) Who is responsible for setting prices of Saras products?
____________________________________________________________________
27) Are you aware of the fact that Reliance is entering the dairy industry?
Yes No
28) Have you planned any strategy to counter competition from Reliance?
Yes No

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REFERENCES

The definitions and data used in this report are compiled from the following sources:

1) Annual publication of Saras Dairy, Alwar

2) Business Research Methodology by C.R. Kothari.

3) Business Research Methods published by ICFAI University Press.

4) Dairy map of Rajasthan from the website www.mapsofindia.com

5) Definition of marketing by American Marketing Association

6) Definition of marketing by Peter Drucker

7) MIS department of Saras dairy (AZDUSS Ltd., Alwar).

8) Principles of Marketing by Philip Kotler and Gary Armstrong.

9) Principles of Marketing published by ICFAI University Press.

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GLOSSARY

The definitions of the terms used in this report are:

1) HACCP: HACCP stands for Hazard Analysis and Critical Control Points. HACCP is
an industry-wide effort approved by the scientific community as well as regulatory
and industry practitioners. This effort is designed to focus specifically on food safety,
including food safety in retail establishments. HACCP, or the Hazard Analysis Critical
Control Point system, is a process control system that identifies where hazards might
occur in the food production process and puts into place stringent actions to take to
prevent the hazards from occurring. By strictly monitoring and controlling each step
of the process, there is less chance for hazards to occur. HACCP is important because
it prioritizes and controls potential hazards in food production. By controlling major
food risks, such as microbiological, chemical and physical contaminants, the industry
can better assure consumers that its products are as safe as good science and
technology allows. By reducing food borne hazards, public health protection is
strengthened.

2) ISO: ISO is the International Standard Organization. It is essentially a federation of

national standards bodies from around 150 different countries. Within ISO there are
constantly new standards and upgrades being worked upon. Established in 1947, ISO
is a non-government organization, with a mission broadly to promote the development
of standardization with the objective of facilitating international trade. ISO standards
are prefixed with 'ISO'. ISO contribute to making life simpler, and to increase the
reliability and effectiveness of the goods and services we use.

3) PASTEURIZATION: Pasteurization is the process of heating liquids for the purpose

of destroying viruses and harmful organisms such as bacteria, protozoa, molds, and
yeasts. The process was named after its inventor, French scientist Louis Pasteur. The
first pasteurization test was completed by Pasteur and Claude Bernard on April 20,
1862. The food is heated enough to destroy the most heat-resistant pathogenic or
disease-causing microorganism known to be associated with that food. In this process
a large quantity of milk is held in a heated vat at 63 °C (145 °F) for 30 minutes,
followed by quick cooling to about 4 °C (39 °F).

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