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ABOUT MILKFED
HISTORY

Milkfed is not an unknown name for the people of Punjab. It

is very popular among the people. There is a very long history
behind this popularity.

In 1959, a village named 'Verka' near Amritsar, Chief

Minister of Punjab Sardar Partap Singh Kairon established a Dairy
Development Corporation for safeguards of farmers and increase
dairy business. After some times four more Milk Plants were
established i.e. in Chandigarh, Mohali, Ludhiana and Bathinda.
There after it progressed and the number of Milk Plants roses to 8
Plants upto 1980. Before 1981 it is fully under the control of
Punjab Govt. But after it in 1981 the Govt. has developed its
name from Punjab State Co-operative Milk Producers Union Ltd.
into MILKFED Punjab. All the plants were controlled by Head
Office which is established at Chandigarh. Only one balance sheet
was prepared for all plants in Punjab and Profit & Loss for all the
plants was prepared collectively. But in 1981 all plants started to
make their own Balance Sheet and calculate Profit & Loss for their
own plant. The fully Co-operative Society System was adopted
and presently is in continue.

Milkfed, Punjab

The Punjab State Cooperative Milk

Producers Federation Limited popularly
known as MILKFED Punjab, came into
existence in 1973 with a twin objective of

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providing remunerative milk market to the Milk Producers in the
State by value addition and marketing of produce on one hand
and to provide technical inputs to the milk producers for
enhancement of milk production on the other hand.

Although the federation was registered much earlier, but it came

to real self in the year 1983 when all the milk plants of the
erstwhile Punjab Dairy Development Corporation Limited were
handed over to Cooperative sector and the entire State was
covered under Operation Flood to give the farmers a better deal
and our valued customers better products. Today, when we look
back, we think we have fulfilled the promise to some extent. The
setup of the organisation is a three tier system, Milk Producers
Cooperative Societies at the village level, Milk Unions at District
level and Federation as an Apex Body at State
level. MILKFED Punjab has continuously advanced towards its
coveted objectives well defined in its byelaws.

Organization Structure:

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Objectives of MILKFED

To provide remunerative prices to milk producers by value

addition and marketing of produce. To provide technical inputs for
enhancement of milk production on the other hand.
To carry out activities for promoting production,
procurement processing and marketing of milk and milk
products for economic development of the farming
community.
To develop and expand such other allied activities as may
be conducive for the promotion of the dairy industry,
improvement and protection of milch animals and economic
betterment of those engaged in milk production;
To purchase and/or erect buildings, plants, machinery and
other ancillary equipment to carry out business;
To study problems of mutual interest related to production,
procurement and marketing of dairy and allied products;
to purchase commodities from the member and deal with
non-members for marketing, dairy and allied products
subject to such conditions as may be decided by the Board
from time to time;
To establish research and quality control laboratories;

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 To make necessary arrangements for transfer of milk, allied
milk products and commodities;
to market its products under its own trade name/brand
name with its Member Unions trade mark/brand;
To promote the organization of primary societies and assist
members in organization of the Primary Societies; and
To plan development strategies and programme to increase
the volume of procurement and production of the
Federation and its members Unions and for its affective
marketing.

MILK PROCUREMENT NETWORK:

Working on "Anand Pattern" the process of organizing societies at

village level started in Punjab as early as 1978.Presently, there is
strong Network of about 6432 (as on 31.3.2009) Milk Producers
Cooperative Societies organized at village level. About 3.65 Lakh
milk producer members are attached to these societies. Fresh
milk is procured from the milk producers twice a day through
village level societies directly without the assistance of any
middleman.

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INPUT SERVICES:

It is one of the fundamental objectives of MILKFED to carry out

activities for promoting milk production in the State. In view of
this, various technical input services like veterinary health care,
artificial insemination services, vaccination, supply of VERKA
balanced cattle feed and quality fodder seed etc. are provided for
enhancing milk production and economic development of farming
community.

CATTLE INDUCTION PROGRAMME:

Government of Punjab has identified dairy sector as thrust area

for rural development. Recently, Milkfed Punjab has signed
memorandum of understanding (MOU) with State Bank of India,
State Bank of Patiala and Oriental Bank of Commerce for
providing loan up to Rs.50, 000/- without any collateral security
to milk producer farmers for purchase of milch cattle on soft
terms and low rate of interest.

CLEAN MILK PRODUCTION PROGRAMME:

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For improving quality of raw milk right from milk producer's level,
massive programme called "CMP" has been launched under
which 195 Bulk Milk Coolers have been installed in the societies
and many more in pipe line. Besides, more than 1000 Automatic
Milk Collection Stations have been provided to the societies for
bringing efficiency and total transparency in the system.
Traditional manual method of milk testing at society level is being
replaced with Electronic Milk Testers.

WOMEN DAIRY PROJECT:

Household level dairying is largely the domain of women
especially in small and marginal household families. In view of
this fact, Milkfed has undertaken Women Dairy Project in six Milk
Unions namely Hoshiarpur, Ropar, Patiala, Jalandhar, Ludhiana
and Amritsar with an objective to empower rural women in the
field of dairy. This Programme is being implemented under
Support to Training & Employment Programme (STEP) with the
assistance of Government of India. Under this programme, 390
women societies with 19860 women beneficiary members will be
organized.

SETTING UP OF BIG COMMERCIAL DAIRY FARMS:

In order to enhance the milk production and making the dairy
farming a profitable and sustainable profession, Milkfed has
planned to establish at least ten progressive big dairy farms in
each Milk Union by arranging soft terms loans from the banks

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ACHIEVEMENTS

On the basis of quality with efficient administration, MILKFED has

not only established new mile stone of providing services to Dairy
farmers but scaled new heights in delighting esteemed customers
also. This has resulted into tremendous achievements in all fields.
Milkfed not only provides assured market to milk producers but
also carries inputs to enhance milk to their doorsteps. The District
Cooperative Milk Producers Unions and Milk Plants have attained
self-sufficiency or are on the threshold of attaining it. Milkfed has
played a very vital role in providing a strong base for
remunerative price to the producer; they get more money for
their milk and payments are timely. In addition technical input
services in feeding, breeding and management are easily
accessible. Value addition is one of Milkfeds thrust areas and the
plants produce not only pasteurized, homogenized milk but also
buttermilk, cream, cheese, ice cream, butter and clarified butter-
oil (ghee) and several other products. The Milk Unions have
marketed milk and milk products of the value of Rs 202.87 crore
during the year under report. As a cooperative, Milkfed is also
instrumental in empowering milk producers, especially women
and poor people, and fostering management skills. Milkfed runs
regular courses for members in Co-operative Development.

1. MILKFED is providing technical input services like animal

healthcare, supply of quality cattle feed, fodder seeds etc.
at the door steps of the dairy farmers under its Productivity
Enhancement Programme.

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2. For producing quality technical services MILKFED has
established its own two cattle feed plants having capacity of
three hundred metric ton per day.

3. Dairy Farmers are being encouraged to produce quality milk

under the Clean Milk Production Programmes by paying
premium price for quality milk.

4. MILKFED installed a bactoscan in its Milk Union, Ludhiana

which is first in India for determining the bacterial counts in
raw milk at different stages.
5. During the last 3 years, 8 Milk Plants and 2 Cattle Feed
Factories of

MILKFED, Punjab was accedited with ISO-9002 and ISO-

15000 (HACCP) Certification.

6. In view of today's interest of consumers in getting quality

and safe products, MILKFED is manufacturing quality milk
and milk products as per International Standards and also
exploring the possibility of manufacturing milk products of
consumer's choice.

7. MILKFED has launched its own interactive Website on

Internet for its prospective customers which can be
accessed by clicking http//www.milkfed.nic.in

8. MILKFED introduced liquid milk in new design packing with

Mnemonic Symbol of Co-operative Milk in all the District
Milk Unions.

9. The turnover of MILKFED, Punjab during the year 2006-2007

was arrived at Rs. 725 crore.

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MARKETING STRATEGY OF MILKFED, PUNJAB

Milkfed is serving nationwide

consumers through its network of
Regional offices and very strong
Distribution
channels. Milkfed markets a wide
range variety of Verka products which include liquid milk,
skimmed milk powder, whole milk powder, infant food, ghee,
butter, cheese, lassi, SFM, Ice Cream, Malted food etc. The
annual turnover of milkfed has crossed Rs.931 crores. Verka is a
brand leader in milk powders particularly in northern eastern
sectors and SMP marketed by MILKFED commands a premium
price over powders manufactured by competitors which include
multi-national as well as private trade and other Cooperative
Federations. Now Verka is known for its quality, freshness, purity
and of course its homemade taste.

EXTENSION OF THE BRAND:

After winning faith of innumerable

consumers, Verka did not stop.
Changing times brought new
trends, needs, tastes and hopes.
Verka, dynamic as ever too acquired

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newer forms of adding values to milk and milk products. Apart
from introducing new variants of UHT long shelf life milk and SFM
in carry away bottles, Milkfed has a plan to add more variety of
flavours in SFM. VERKA Ice Cream in different flavours and
packagings is available in the market. Many new products are in
pipe line. In true sense, milk had never meant so much before.

EXPORT OF MILK PRODUCTS:

After carving a niche in the national market, Verka brand has

reached in foreign market also. Milkfed has established its Ghee
market in Middle East. Verka Ghee reaches all the emirates and is
available almost in all super markets. The penetration is so deep
that Verka ghee is available even in far off labour camps. In
addition to Dubai, Saudi Arabia, Muscat, Australia and Japan,
Verka Ghee is exported to New Zealand and Malaysia also.

ACHIEVEMENTS:

On the basis of quality with efficient administration, milkfed has

not only established new mile stone of providing services to Dairy
farmers but scaled new heights in delighting esteemed customers
also. This has resulted into tremendous achievements in all
fields.

TURNOVER:

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The annual turnover of Milkfed which was Rs.931 crores in the
year 2007-08 has hit the level of Rs.1150 crores in the year 2008-
09.

Turnover (Rs. in Crores)

VISION OF MILKFED, PUNJAB

1. Under its vision - 2005 Plan the number of Milk Producers'

Co-operative Societies will increase to 8000 and
membership to 4.75 lakhs.

2. To improve the quality of milk at village level, it has been

planned to provide Milk Bulk Cooling Unit in all the MILKFED
areas in a phased manner.

3. To bring transparency in all the milk collection, fat testing

and payment, electronic milk-o-testers & automatic milk
collection centres will be provided at village level Dairy
Cooperative Societies.

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4. Expansion of butter manufacturing capacity and
reconditioned butter manufacturing machinery will be
installed.

5. Expansion of existing ice cream manufacturing capacity and

set up additional Ice Cream Plant at Jalandhar.

6. Milkfed strives to give better and remunerative price to the

farmers to make dairy attractive and sustainable profession.

7. Providing improved technical input services to farmers.

8. Setting up big commercial farms.

9. More stress on clean milk production programme.

10. Rural women empowerment.

11. Massive modernization of process and operations.

12. Enforcement of stringent quality parameters.

13. Strenghthing market base with specific stress on consumer

market.

14 Dynamic enhancement in Verka product mix.

15. To launch new value added milk products including long

shelf life panner etc.

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 ABOUT THE UNIT

Milk Plant Bathinda

Milk Plant Bathinda was

commissioned in
September, 1974 with a
total outlay of Rs. 1.6
Crores by The Pb. Dairy
Dev. Corporation limited. It
was one of the select co-
operatives that were
covered under the
Operation Flood-1
Programme. Subsequently
on Ist March, 1980, it was
handed over by the State
Govt. to The Punjab State
Co-operatives milk
Producers federation Ltd.
(MILKFED) which is an apex
level

Organization of milk producers operative in the State. Further to

this development, the Milk Plant was handed over to The
Bathinda District Co-operative Milk Producers Union Ltd.
(registered in the year 1978 under Punjab co-operative Act.) on
1st January 1988. Milk Plant set up with a twin objective of
providing remunerative milk market to the milk producers in this
area and also supplies good quality milk products to the

13
consumers at reasonable rates and also marketing of milk
producers at village level.

Before the year 1992-1993

the milk procurement was in
a very bad shape. Milk plant
was running under capacity.
The improvement in milk
procurement by 40% was
achieved in the year 1994-95
and the best achievement
was made in the year 2000-
01 about 42000 milk
producers members are
attached with the milk union
through village level
cooperative societies.

Out of them 98% are running on profit. The average milk

procurement per day in 60364 ltrs per day in 1998-99.

Inception

Milk Production is a very important part of the agricultural

economy in the State of Punjab. Punjab is one of the smallest
States in Indian Union with a total area of 50,362 Sq. Kms, which
is 1.5% of the Indian landmass. Dairy Farming is an age-old
subsidiary profession in the rural areas of Punjab. Punjab is the

14
second largest milk producing state in India, producing around
10% of the countrys Milk Production i.e. 8 million tons annually.

1. First Milk Plant, of the State was setup at Verka near

Amritsar.
2. Milk Union, Bathinda was registered as a society in 1977
3. The brand name of Milk and Milk Products was adopted as
Verka.
4. An ISO 9001:2000, HACCP: 15000 & export certified unit.
5. Turnover of Milk plant, Bathinda is Rs. 55 Cr. per annum
6. The capacity of the plant is 1.00 lac. Liter per day.

Objectives

1. To strengthen dairy sector, Milkfed came into existence in

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

Necessity for Production Enhancement

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 1. Milk production in the area increased manifold with the
result. Resultantly started receiving daily 2.50 LPD of milk.
2. To increase the participation of women 120 exclusively
women societies are organized with 15300 women
members. Through Punjab Women Dairy Project a Central
Govt. sponsored scheme.
3. Milk Production in the area increased manifold with the
result. Resultantly started receiving daily 2.50 Lac LPD of
Milk and Peak procurement 4.5 Lac LPD.
4. To cater to the increased demand, necessity of expansion of
milk plant arose.
5. This improved the socio- economic conditions of marginal
and poor farmers.
6. The profitability of the plant and turnover of the plant
improved a lot.
7. No. of societies increased from 94 to 751 and its
membership from 5400 to 78000.
8. All the societies are in net profit and distributing bonus to its
members.

Quality of Milk and Milk Products

1. To improve the quality of raw milk, Clean Milk Production

program started in 650 villages and resultantly the quality
of products increased.
2. Milk Plant, Bathinda is one of the milk plant in India in Dairy
Sector to get ISO Certification.

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 3. Under ISO Certification and HACCP (IS 15000) Milk Union
started export of Ghee, SMP to Gulf Countries Philippines,
Manila, South Africa, Singapore, Bangladesh etc. The export
is more than 5.5 crore during the last year.
4. To further improve the quality of Raw Milk, Milk Union
started 365 Automatic Milk collection Stations at village
level.
5. To meet the Challenges of WTO Milk Union started TIFAC
program with the help of Ministry of information.
6. Bulk Milk Coolers have been installed at village level to chill
the milk on this spot and to check bacterial count.
7. Further BMC has been approved under central govt. Scheme
on 75% grant to be installed in societies.

MARKETING DEPARTMENT

The marketing section plays a vital role in the plant and the
union. The marketing section of Milk Plant, Bathinda is a well-
functioning section, which seals the product produced here under
a trade name of verka this marketing section covers following
section Punjab as well as in others state in Haryana, Rajisthan.

A. Punjab

1. Bathinda
2. Mansa
3. Faridkot
4. Firozpur
5. Rampura
6. Talwandi Sabo
7. Malout
8. Abohar

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B. Haryana

1. Hisar
2. Sirsa
3. Rania
4. Dabwali
5. Ellenahbad
C. Rajistan

1. Sangria

2. Shri Ganganagar

ORGANIZATION STRUCTURE

The marketing department at Verka milk pant, Bathinda is one of

the major part of whole management. This section is working in a
well-designed structure. All the departmental activities are well
co- ordinated and fruitful.

General Manager

Deputy

Field sales Field sales Field sales

Sales Sales Sales

Sales Sales
Sales
Sales
Sales
Sales
18 Sales
Sales
 Sales

SALE PERMOTION ACTIVITY

Sale promotion activities are necessary for the promotion of

the sale. Activities like advertisement, camps, and seminars are
held for time to time to give awareness of products and promote
the sale. Milk plant Bathinda has used advertisement activity to
promote the sale. Advertisement helps in remind to consumers
about the products various advertisement Medias are used to
make advertisement. For advertisement more stress is given to
the sign board and wall-painting on highways especially near milk
bar, Bathinda.

Now newspaper are used for advertisement and to tell

about the advantages of the Verka Milk or there nutritional value
to consumers. Camps are also held in town for awareness of
quality of products and provide information about the benefits of
products. Now packed milk is coming in Punjab and other places
in different packaging so different advertisement are needed at
different places. Milkfed is planning for one pack now to be used
for different states so that one advertisement can be used for all.

Dealers incentive schemes are also use to promote the sale

in which dealers are given free packs so that dealers are attract
to purchase and sell more products.

SALIET FEATURES OF MILK PLANT VERKA

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 1. SUPPL OF LIQUID MILK

Milk plant bathinda protects the interest of milk producers as well

as the consumer of milk and milk products. It is supplying 28,000
Ltrs of milk per day to the urban population. Milk Plant Bathinda
supplies fresh, hygienic pasteurized milk. The bathinda milk plant
produce various kind of milk i.e. Full cream, Standard milk, Toned
milk, Double toned milk and others milk products to serve
different segment of consumer market.

2. Export of Ghee

With the competition in the national market hooting up, efforts to

export milk product has been made. Milk plant has exported 40
Mts. Of ghee to Gulf counties in the month of January and
February 2010, which are around value of 3 Lac $

3. Automatic Khoa making machine.

Recently an automatic khoa making machine has been installed

which can manufacture to Mts of khoa every day, which is most
hygienic, fresh and is a base for most of the sweets.

4. Sweetened flavored Milk and Verka Lassi

A large numbers of milk bars have been started. In the city of

Abohar , Bathinda, Malout, Muktsar, Moga, Bhagapurana,
Nihalsingh wala, Mansa and a large network of dealers are also
made to supply milk and milk products. The demand of
sweetened flavored milk and verka lassi has increased manifold.

5. Milk Products

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The Milk Plant is manufacturing Skimmed milk powder, Whole
powder, Ghee, Table Butter, Panner, Khoa, Namkeen lassi, Kheer
and Milk cake.

6. Quality assurance

The management of milk plant has adopted especial program on

quality since two years called Quality Assurance Programme in
which ensured that the final product must come out with national
and international quality norms as per P.F.A. standards. The
products also tested various standard laboratories like composite
food laboratories.

(Army) hygienic of the plant by army organization, the

laboratories of Mother Diary, Aggmark and BIS, which is a proof of
guaranteed quality. The quality products are also accepted on
international standards.

7. Financial Position

The Financial Position was very week before 2008-09 which

started improving with the improvement of milk procurement.
The losses were reducing year to year and now a stage has come
that the union will definitely earn net profit in the year 2009-10.
The annual loses were incurred to the tune of 1.25 to 1.40 crores
but in the year 2009-10 after wiping out such loses the union has
increased at net profit.

Milk and Milk products are prepared as per the norms by

pasteurizing the milk and others required process to fulfill the
target/norms as per the market demand. Milk plan also got ISO-

21
9001:2000 with HACCP (as per IS: 15000: 98) and also approved
by the Export Inspection Agency New Delhi for export the milk
products. Milk products having standards norms of PFA/BIS/EGG
MARK and our prescribed specification if International Standards
for export of ghee and Milk Powder to Dubai and Middle East
Countries.

Products : - (BRAND-VERKA)

Milk
Ghee
Skimmed Milk Powder
Whole Milk Powder
Table Butter
Paneer
Khoa
S.F.M.
Milk Cake

MARKETING STRATEGIES

The starting point for the effective marketing strategy is the

consumer and his product preferences. Studying the consumer
closely, analyzing his needs, life styles and standard of living will
enable marketer to formulate effective marketing strategies.
Elements for effective marketing strategies are:-

1. Product planning

2. Pricing

3. Positioning of product

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4. Distribution channel planning

5. Promotional planning

1. Product Planning:-

Before entering into the production process, it would be

important to understand the likely improvements and
modifications required in the existing products. The production
design, colu and quality ought to be planned as per demand and
the taste of the consumers. This would help make products
acceptable to the population. For example, it has been observed
that rural consumers relish "Homemade ghee" which is prepared
by heating butter obtained by churning curd. This process
induces a peculiar attempt the ripening process for
manufacturing ghee and should develop flavor as close to that of
the "Home made ghee".

The packing of products should be strong enough to with

stand rough handling. The size of packing should be smaller than
urban retail pack so as to suit the affordability by the rural
masses. A low unit price pack is desirable because of the low
purchasing power of rural consumers.

2. Pricing:-

Price is an important element of the marketing strategy. The

role of price becomes more significant because of low purchasing
power of the Indian population. This factor should be considered
while pricing the product. For example, the price of ghee must be
lower than the cost of manufacturing ghee at home by milk

23
producers; otherwise they would not find it attractive to buy from
the market.

Packing cost of the product should be kept as low as possible.

3. Positioning of Product:-

After analyzing the preferences of the rural consumer a firm

should position its product in an appropriate way. The positioning
of the product can be done in many ways. For example:-

a) Low price positioning

b) Positioning on the sense of belongingness

c) Quality leadership

After analyzing the product attributes and studying the rural

habits, tastes and life style, one can come up with a proper
strategy to position the milk products in rural areas.

4. Distribution Channel Planning:-

Distribution is a major problem in marketing. In spite of the

growing awareness about the potential of market, most
marketing firms have failed to tap it because they could not
develop an effective distribution system.

The most of areas hardly have any agents, dealers or

stockiest. Milk Plant has an advantage over the private
enterprises because of their daily milk collection network of
village level societies. The society works as stockiest/dealer and
the secretary of the society becomes a good medium to route the

24
products to the ultimate consumer. Therefore, if the secretary is
given retailer's margin, he gets motivated to sell the products.
Credit facilities against the milk sale can also boost the sales.
Gram Seva Samiti can also be used as sales point by giving them
suitable margin.

5. Promotional Planning:-

While deciding on as to which media would reach the

prospective buyers effectively, the socio-cultural background, the
literacy level and their media preferences need to be studied.
Rural people with low literacy level would only remember brands
by picture symbols as opposed to brand names. For the such
consumer a message should be simple and design should be
catchy to comprehend.

As mentioned earlier one should understand the psychology

of the consumer before designing the "Message". Rural milk
producers generally perceive that converting milk into ghee at
home is a cheaper proposition. The message should so designed
as to break these notions of rural masses. Rural people should
educate that conversion of milk into ghee at home is a costlier
proposition. Posters in this context should be pasted at various
societies and message should be communicated through village
extension workers.

Personal contact of village extension workers and secretary

with the producer members also plays an important role. Milk van
could be painted with advertisements of the brand of the Milk
Plant to increase awareness. Because of literacy level in rural

25
areas, media selection becomes a problem. However, "Word of
mouth" advertising will emerged as the most effective means of
advertising and communications. It is also felt that opinion
leaders and important informants in the village have a greater
role in improving product image. Field team should contact them
and seek their help. Another popular effective rural media is "Wall
painting" which is already done by the Milk Plant's authority in
case of sale of Verka cattle feed. Propaganda and demonstration
vans, loudspeakers and participation in village fairs & melas help
in turning the villagers into buyers.

26
 TODAYS MILK

M.C.T milk plant is a creation and result of deep dedication and hard work of

"Goyal Borthers", Mr Varinder Kumar, Mr Rakesh Goyal, Mr Kamaldeep and Mr

Parveen Goyal. The family is recognised as a renowned family in the field of Dairy and

Rice industry with in a periphery of Moga and Ludhiana district.

The company has been involved in the Dairy Business since 2004 in Punjab, India. Today

Milk take pride in introducing as one of Punjab's leading Manufacturer and Supplier of

wide range of Dairy Products. Today Milk have shown a new way of living- a healthy

way of Dairy Industry for Dairy Business to improve the way of Living.Today Milk is on

the edge of Regd. No.: 48/DD/PBMPO and Punjab Agro Certified Company for further

growth in our core competency areas - Dairy Products Manufacturer and Supplier in

Punjab, Haryana and Himachal Pardesh. We have extensive range of Milk Product and

Dairy Product catering to people of all age and food Industry. Today Milk is in the food

business to fulfill a need for extraordinary yet affordable organic dairy, cultured and

cheese products as well as we believe that quality and innovation play an important role

in people's eating habits and Dairy Business that meet the quality of Milk Product,

performance and pride aspiration of Customers for Dairy Industry.

Today Milk ,one of the leading manufacture & Supplier of Pasteurised milk, desi ghee ,

butter, paneer, flavored Milk and all kind of dairy products, has emerged as the visual

winner of dairy industry. Today Milk plant is situated at commercially viable route of

Moga - Barnala highway. It operates around the clock, 365 days a year, to provide the

freshest dairy products to customers every day.

27
Known for our adherence to strict quality norms, we are on the edge for further growth in

our core competency areas - dairy products.

We are also in the process of massive production and marketing of value added dairy

food products. Under the brand name of "Today Milk" we manufacture Pasteurised milk,

butter and pure ghee and many more.

At Today Milk, supreme quality is accomplished by state-of-the-art automatic

manufacturing plant in the most hygienic conditions with a profound understanding in

every stage of processing. This heavenly part of the world was deprived of good quality

milk.

We have in mind to establish Today Milk as one of the top players in the Indian dairy

market for functional foods with high value added, which deliver improved nutrition and

wellness to consumers, and attain a clear leadership in selected product categories with a

high growth potential for the Group.

Milk & dairy products that play an essential role in everyone's daily diet, will be key

categories for the Company.

The safety, wholesomeness and nutritional value of our products are of paramount

importance and are emphasised in the company Quality Policy. Our policy is to be

complete compliance with National and State Health Department Food Standards.

28
 TODAY MILK PRODUCTS

Pasteurised standarised Milk Ultra

Pasteurised standarised Milk Green

Pasteurised Toned Milk

29
 Pasteurised

Full Cream Milk

Pasteurised Double

Toned Milk

Pasteurised

SKIMMED Milk

30
 Today Milk

Curd Cup

Curd Pouch 150 Gm

Curd Pouch 500 Gm

31
 Plain Lassi 500 ML

Table Butter 100GM/500GM

Today Paneer 200GM

32
 Today Paneer 5000GM

Pure Desi Ghee 1KG

Desi Ghee 500ML/1 LTR/2 LTR/5 LTR

33
Pure Desi Ghee JAR 15KG

Sterilized Flavoured Milk

34
35
 CONSUMER PREFERENCE

All marketing starts with the consumer. So consumer is a very important

person to a marketer. Consumer decides what to purchase, for whom to

purchase, why to purchase, from where to purchase, and how much to

purchase. In order to become a successful marketer, he must know the

liking or disliking of the customers. He must also know the time and the

quantity of goods and services, a consumer may purchase, so that he

may store the goods or provide the services according to the likings of the

consumers. Gone are the days when the concept of market was let the

buyers beware or when the market was mainly the sellers market. Now

the whole concept of consumers sovereignty prevails. The manufacturers

produce and the sellers sell whatever the consumer likes. In this sense,

consumer is the supreme in the market. As consumers, we play a very

vital role in the health of the economy local, national or international.

The decision we make concerning our consumption behavior affect the

demand for the basic raw materials, for the transportation, for the

banking, for the production; they effect the employment of workers and

deployment of resources and success of some industries and failures of

others. Thus marketer must understand this.

36
Preference (or "taste") is a concept, used in the social sciences,

particularly economics. It assumes a real or imagined "choice" between

alternatives and the possibility of rank ordering of these alternatives,

based on happiness, satisfaction, gratification, enjoyment, utility they

provide. More generally, it can be seen as a source of motivation. In

cognitive sciences, individual preferences enable choice of objectives/

goals. The study of the consumer preference not only focuses on how and

why consumers make buying decision, but also focuses on how and why

consumers make choice of the goods they buy and their evaluation of

these goods after use. So for success of any company or product

promotion it is very necessary to depart its concentration towards

consumer preference.

37
 SCOPE OF THE STUDY

As learning is a human activity and is as natural, as brpreferhing.

Despite of the fact that learning is all pervasive in our lives, psychologists

do not agree on how learning takes place. How individuals learn is a

matter of interest to marketers. They want to teach consumers in their

roles as their roles as consumers. They want consumers to learn about

their products, product attributes, potential consumers benefit, how to

use, maintain or even dispose of the product and new ways of behaving

that will satisfy not only the consumers needs, but the marketers

objectives. The scope of my study restricts itself to the analysis of

consumer preferences, perception and consumption of Verka Products.

There are many other brands of dairy products s available but my study

is limited to two major players of dairy products s leaving behind the

others. The scope of my study is also restricts itself to Bathinda region

only.

38
 OBJECTIVES OF THE STUDY

This project is based on the comparative study consumer behavior

towards Verka Products over amul and today milk. Objectives of the

study are:

The other objective is to compare the customer satisfaction level

associated with the product and the customer preference level.

To increase customer satisfaction and recapture the market share

by fulfilling the customer needs.

To study the factors affecting the consumption pattern.

39
 LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible

aspect of the topic was kept in mind. Nevertheless, despite of fact

constraints were at play during the formulation of this project. The main

limitations are as follows:

Due to limitation of time only few people were selected for the

study. So the sample of consumers was not enough to generalize

the findings of the study.

The main source of data for the study was primary data with the

help of self-administered questionnaires. Hence, the chances of

unbiased information are less.

People were hesitant to disclose the true facts.

The chance of biased response cant be eliminated though all

necessary steps were taken to avoid the same.

40
41
42
 RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is

based on information collected from primary sources. After the detailed

study, an attempt has been made to present comprehensive analysis of

consumption of Verka Products consumed by the people. The data had

been used to cover various aspects like consumption, consumers

preference and customers satisfaction regarding Verka Products. In

collecting requisite data and information regarding the topic selected, I

went to the residents of Bathinda and collected the data.

Survey design:

The study is a cross sectional study because the data were collected at a

single point of time. For the purpose of present study a related sample of

population was selected on the basis of convenience.

Sample Size and Design:

A sample of 100 people was taken on the basis of convenience. The

actual consumers were contacted on the basis of random sampling.

Research Period:

43
Research work is only carried for 2 or 3 weeks.

Research Instrument:

This work is carried out through self-administered questionnaires. The

questions included were open ended, dichotomous and offered multiple

choices.

Data Collection:

The data, which is collected for the purpose of study, is divided into 2

bases:

Primary Source: The primary data comprises information survey

of Comparative study of consumer behavior towards Verka

Products. The data has been collected directly from respondent

with the help of structured questionnaires.

Secondary Source: The secondary data was collected from

internet, References from Library.

Data Analysis:

44
The data is analyzed on the basis of suitable tables by using

mathematical techniques. The technique that I have used is bar

technique.

45
 ANALYSIS OF THE STUDY

LIKING FOR THE DAIRY PRODUCTS S

Table:1

Liking for the Dairy products Yes No

Number of Respondents 100 0

46
47
 DIFFERENT AGE GROUPS

Table:2

AGE GROUPS 0-10 10-20 20-30 ABOVE 30

NUMBER OF 27 22 31 20

RESPONDENTS

48
 PREFERENCE ACCORDING TO AGE GROUPS

Table:3

AGE GROUPS
BRANDS 0-10 10-20 20-30 ABOVE 30
VERKA 5 7 12 10
AMUL 15 8 10 6
TODAY MILK 7 7 9 4

In age group of 0-10, 5 peoples like verka, 15 like amul, 7 like today milk

while In age group of 10-20, 7 peoples like verka, 8 like amul, 7 like today

milk while In age group of 20-30, 112 peoples like verka, 10 like amul, 9

like today milk while In age group of above 30, 10 peoples like verka, 6

like amul, 4 like today milk.

49
 BRAND PREFERENCE

Table:4

BRANDS PREFERENCE BY CONSUMERS

VERKA 41
AMUL 36
TODAY MILK 23

50
 PURCHASE OF DAIRY PRODUCTS

Table:5

SUB- BRANDS VERKA AMUL TODAY MILK

PANEER 5 14 7
MILK 19 15 9
LASSI 9 5 5
GHEE 8 2 2

5% verka, 14 amul, 7 today milk, respondents used dairy products

paneer, while 19% verka, 15 amul, 9 today milk, respondents used dairy

products milk, 9% verka, 5 amul, 5 today milk, respondents used dairy

products lassi while 8% verka, 2 amul, 2 today milk, respondents used

dairy products ghee.

51
INFLUENCING FACTORS DURING PURCHASE OF DAIRY PRODUCTS

Table:11

FACTORS VERKA AMUL TODAY MILK

FLAVOR/TASTE 11 11 6
PRICE 10 8 4
QUALITY 10 9 5
PACKAGING 4 1 1
FORM 2 1 1
BRAND 1 4 4
IMAGE 1 1 1
COLOR 0 0 0
SHAPE 0 0 0
QUANTITY 2 1 1

11% verka, 11 amul, 6 today milk, respondents used dairy products, due

to flavor/taste while 10% verka, 8 amul, 4 today milk, respondents used

dairy products due to price while 10% verka, 9 amul, 5 today milk,

respondents used dairy products due to quality while 4% verka, 1 amul,

1 today milk, respondents used dairy products due to packaging while

2% verka, 1 amul, 1 today milk, respondents used dairy products due to

form while 1 verka, 4 amul, 4 today milk, respondents used dairy

products due to brand name while 1 verka, 1 amul, 1 today milk,

respondents used dairy products due to brand image while 2% verka, 1

amul, 1 today milk, respondents used dairy products due to quantity.

52
53
 PACK OF DAIRY PRODUCTS S PREFERED

Table:17

PACK SIZE VERKA AMUL TODAY MILK

SMALL 10 11 7
BIG 15 15 6
FAMILY PACK 16 10 10

10% verka, 11 amul, 7 today milk, respondents used dairy products of

small size packing while 15% verka, 15 amul, 6 today milk, respondents

used dairy products of big size packing while 16% verka, 10 amul, 10

today milk, respondents used dairy products of family pack.

54
 PROMOTIONAL OFFERS

Table:18

PROMOTIONAL OFFERS VERKA AMUL TODAY MILK

FREE GIFTS 2 10 7
PRICE OFFER 10 11 6
ANY OTHER 29 15 10

2% verka, 10 amul, 7 today milk, respondents used dairy products due

to free gifts while 10% verka, 11 amul, 6 today milk, respondents used

dairy products due to price offer while 29% verka, 15 amul, 10 today

milk, respondents used dairy products due to other offers like 100 gm

extra free, cash coupons, etc.

55
 FACTORS AFFECTING PURCHASE

Table:19

PROMOTIONAL OFFERS VERKA AMUL TODAY MILK

Advertisement 5 10 5
Suggestion From Friends 10 6 4

And Relatives
Attractive Display 5 7 3
Doctors Advice 7 3 4
Brand Ambassadors 3 4 2
Ingredients 11 6 5

5% verka, 10 amul, 5 today milk, respondents used dairy products due

to its advertisement while 10% verka, 6 amul, 4 today milk, respondents

used dairy products due to suggestion from friends/relatives while 5%

verka, 7 amul, 3 today milk, respondents used dairy products due to

attractive display while 7% verka, 3 amul, 4 today milk, respondents

56
used dairy products due to doctors advice while 3% verka, 4 amul, 2

today milk, respondents used dairy products due to brand ambassador

while 11% verka, 6 amul, 5 today milk, respondents used dairy products

due to ingredients.

57
 MEDIA OF ADVERTISEMENT

Table:20

MEDIA OF VERKA AMUL TODAY MILK

ADVERTISEMENT
TELEVISION 5 10 5
NEWSPAPERS 7 8 6
BROCHURES 5 5 4
HOARDING 10 10 4
DISPLAY 14 3 4

5% verka, 10 amul, 5 today milk, respondents used dairy products due

to television ads while 7% verka, 8 amul, 6 today milk, respondents used

dairy products due to newspapers while 5% verka, 5 amul, 4 today milk,

respondents used dairy products due to brochures while 10% verka, 10

58
amul, 4 today milk, respondents used dairy products due to hoarding

while 14% verka, 3 amul, 4 today milk, respondents used dairy products

due to display.

59
 FREQUENCY OF CONSUMPTION

Table:21

FREQUENCY OF VERKA AMUL TODAY MILK

CONSUMPTION
ONCE IN A FORTNIGHT 10 11 7
DAILY 25 22 12
WEEKLY 2 1 2
MONTHLY 3 2 1
QUARTERLY 1 0 1

10% verka, 11 amul, 7 today milk respondents used dairy products once

in a fortnight while 25% verka, 22 amul, 12 today milk respondents used

dairy products daily while 2%verka, 1 amul, 2 today milk respondents

used dairy products weekly while 3% verka, 2 amul, 1 today milk

60
respondents used dairy products monthly while 1% verka 0 amul 1 today

milk respondents used dairy products quarterly.

61
 REASONABLE PRICE

Table:22

PRICE OF DAIRY VERKA AMUL TODAY MILK

PRODUCTS
BELOW 5 5 10 5
5-10 7 8 6
10-20 5 5 4
20-30 10 10 4
ABOVE 30 14 3 4

In price group of below 5, 5 peoples like verka, 10 like amul, 5 like today

milk while In price group of 5-10, 7 peoples like verka, 8 like amul, 6 like

today milk while In price group of 10-20, 5 peoples like verka, 5 like

62
amul, 4 like today milk while In price group of 20-30, 10 peoples like

verka, 10 like amul, 4 like today milk while In price group of above 30, 14

like verka, 3 like amul, 4 like today milk.

63
 CONSUMERS BRAND LOYALTY

Table:23

BRAND LOYALTY ACTIONS VERKA AMUL TODAY MILK

POSTPONE YOUR 2 10 7

PURCHASE
SWITCH OVER TO OTHER 10 11 6

BRANDS
GO TO OTHER SHOP FOR 29 15 10

SEARCH OF PREFERED

BRAND

2% verka, 10 amul, 7 today milk, respondents used dairy products says

postpone your purchase while 10% verka, 11 amul 6 today milk,

64
respondents used dairy products switch over to other brands while 29%

verka, 15 amul, 10 today milk, respondents used dairy products go to

other shop for search of preferred brand.

65
REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED

Table:24

SHIFT TO NEW BRAND OF VERKA AMUL TODAY MILK

THE PREFERED PRODUCT

NO, NOT AT ALL 5 14 7
MAY CONSIDER 19 15 9
NO, SHALL NOT 9 5 5
CANT SAY 8 2 2

5% verka, 14 amul, 7 today milk, respondents user says no, not at all

while 19% verka, 15 amul, 9 today milk, respondents user may consider

while 9% verka, 5 amul 5 today milk, respondents user says no, shall

not while 8% verka, 2 amul, 2 today milk, respondents user cant say.

66
 REASONS FOR NOT SWITCHING OVER TO OTHER BRANDS

All the consumers why they continue to buy the old brand gave various

important reasons. The most important reasons given by the consumers

were:

Taste/Flavor

Brand

Image

Quality

Packaging

67
 FINDINGS

In age group of 0-10, 5 peoples like verka, 15 like amul, 7 like today milk

while In age group of 10-20, 7 peoples like verka, 8 like amul, 7 like today

milk while In age group of 20-30, 112 peoples like verka, 10 like amul, 9 like

today milk while In age group of above 30, 10 peoples like verka, 6 like amul,

4 like today milk.

5% verka, 14 amul, 7 today milk, respondents used dairy products

paneer, while 19% verka, 15 amul, 9 today milk, respondents used

dairy products milk, 9% verka, 5 amul, 5 today milk, respondents

used dairy products lassi while 8% verka, 2 amul, 2 today milk,

respondents used dairy products ghee.

11% verka, 11 amul, 6 today milk, respondents used dairy products,

due to flavor/taste while 10% verka, 8 amul, 4 today milk,

respondents used dairy products due to price while 10% verka, 9

amul, 5 today milk, respondents used dairy products due to quality

while 4% verka, 1 amul, 1 today milk, respondents used dairy

products due to packaging while 2% verka, 1 amul, 1 today milk,

respondents used dairy products due to form while 1 verka, 4 amul, 4

today milk, respondents used dairy products due to brand name while

1 verka, 1 amul, 1 today milk, respondents used dairy products due

68
 to brand image while 2% verka, 1 amul, 1 today milk, respondents

used dairy products due to quantity.

10% verka, 11 amul, 7 today milk, respondents used dairy products

of small size packing while 15% verka, 15 amul, 6 today milk,

respondents used dairy products of big size packing while 16% verka,

10 amul, 10 today milk, respondents used dairy products of family

pack.

2% verka, 10 amul, 7 today milk, respondents used dairy products

due to free gifts while 10% verka, 11 amul, 6 today milk, respondents

used dairy products due to price offer while 29% verka, 15 amul, 10

today milk, respondents used dairy products due to other offers like

100 gm extra free, cash coupons, etc.

5% verka, 10 amul, 5 today milk, respondents used dairy products

due to its advertisement while 10% verka, 6 amul, 4 today milk,

respondents used dairy products due to suggestion from

friends/relatives while 5% verka, 7 amul, 3 today milk, respondents

used dairy products due to attractive display while 7% verka, 3 amul,

4 today milk, respondents used dairy products due to doctors advice

while 3% verka, 4 amul, 2 today milk, respondents used dairy

69
 products due to brand ambassador while 11% verka, 6 amul, 5 today

milk, respondents used dairy products due to ingredients.

5% verka, 10 amul, 5 today milk, respondents used dairy products

due to television ads while 7% verka, 8 amul, 6 today milk,

respondents used dairy products due to newspapers while 5% verka,

5 amul, 4 today milk, respondents used dairy products due to

brochures while 10% verka, 10 amul, 4 today milk, respondents used

dairy products due to hoarding while 14% verka, 3 amul, 4 today

milk, respondents used dairy products due to display.

10% verka, 11 amul, 7 today milk respondents used dairy products

once in a fortnight while 25% verka, 22 amul, 12 today milk

respondents used dairy products daily while 2%verka, 1 amul, 2

today milk respondents used dairy products weekly while 3% verka, 2

amul, 1 today milk respondents used dairy products monthly while

1% verka 0 amul 1 today milk respondents used dairy products

quarterly.

In price group of below 5, 5 peoples like verka, 10 like amul, 5 like

today milk while In price group of 5-10, 7 peoples like verka, 8 like

amul, 6 like today milk while In price group of 10-20, 5 peoples like

verka, 5 like amul, 4 like today milk while In price group of 20-30, 10

70
 peoples like verka, 10 like amul, 4 like today milk while In price group

of above 30, 14 like verka, 3 like amul, 4 like today milk.

2% verka, 10 amul, 7 today milk, respondents used dairy products

says postpone your purchase while 10% verka, 11 amul 6 today milk,

respondents used dairy products switch over to other brands while

29% verka, 15 amul, 10 today milk, respondents used dairy products

go to other shop for search of preferred brand.

5% verka, 14 amul, 7 today milk, respondents user says no, not at all

while 19% verka, 15 amul, 9 today milk, respondents user may

consider while 9% verka, 5 amul 5 today milk, respondents user says

no, shall not while 8% verka, 2 amul, 2 today milk, respondents user

cant say.

71
 SUGGESTIONS & RECOMMENDATIONS

By virtue of its sale and advertising strategy dairy product companies is a

successful brand but there are still some recommendations from my study

point of view is that Dairy Product Companies needs to make its service

more stronger than other service providers to dominate the market in

future too.

Dairy product companies should introduce cheaper rates than the other

because its competitor had introduced it.

Dairy product companies should sign celebrities from bollywood for its

brand advertisement.

Dairy product companies should arrange its exhibitions and canopies for

sales promotional activities.

72
 CONCLUSION

The conclusion of my study is that dairy product companies Advertisement

has a major impact its users. People like its schemes very much. dairy

product companies had creates a very good image on the mind of the users

of products. Dairy product companiess competitive strategies with other

companies are excellent but there is still need to take more efforts. Dairy

product companies is successful to create an image in the mind of gym

products. Dairy product companies should select some cricket or bollywood

celebrities for its advertisement. We all knows that advertisement is running

in these days on our TVs which is excellent and winning our hearts mainly

youngsters hearts. The main quality of the dairy product companies is its

performance with latest technology. The only company is in India with this

technology. Second reason which makes it popular is its cheap rates and

services. Last but not least we can say that In a short time dairy product

companies make a good market of its product. All the persons are satisfied

with the dairy product companies promotional strategies and gave excellent

ranking to it. Hence best of Luck to dairy product companies.

73
74
75
 BIBLIOGRAHY

http://www.VERKAindia.com

http://www.AMUL.com

http://www.aphrodite-dairy products s.co.uk/history_dairy

products .htm

http://www.google.com

http://www.VERKA.co.nz/carnival/index.htm

http://www.packaging-technology.com//VERKA4.html

http://www.dairy products review.co.uk

http://en.wikipedia.org/wiki/preference

76
77
78
 QUESTIONNAIRE

LIKING FOR THE DAIRY PRODUCTS S

Liking for the Dairy products Yes No

Number of Respondents

DIFFERENT AGE GROUPS

AGE GROUPS 0-10 10-20 20-30 ABOVE 30

NUMBER OF

RESPONDENTS

PREFERENCE ACCORDING TO AGE GROUPS

AGE GROUPS
BRANDS 0-10 10-20 20-30 ABOVE 30
VERKA
AMUL
TODAY MILK

BRAND PREFERENCE

BRANDS PREFERENCE BY CONSUMERS

VERKA
AMUL
TODAY MILK

79
PURCHASE OF DAIRY PRODUCTS

SUB- BRANDS VERKA AMUL TODAY MILK

PANEER
MILK
LASSI
GHEE

INFLUENCING FACTORS DURING PURCHASE OF DAIRY PRODUCTS

FACTORS VERKA AMUL TODAY MILK

FLAVOR/TASTE
PRICE
QUALITY
PACKAGING
FORM
BRAND
IMAGE
COLOR
SHAPE
QUANTITY

80
PACK OF DAIRY PRODUCTS S PREFERED

PACK SIZE VERKA AMUL TODAY MILK

SMALL
BIG
FAMILY PACK

PROMOTIONAL OFFERS

PROMOTIONAL OFFERS VERKA AMUL TODAY MILK

FREE GIFTS
PRICE OFFER
ANY OTHER

FACTORS AFFECTING PURCHASE

PROMOTIONAL OFFERS VERKA AMUL TODAY MILK

ADVERTISEMENT
SUGGESTION FROM

FRIENDS AND RELATIVES

ATTRACTIVE DISPLAY
DOCTORS ADVICE
BRAND AMBASSADORS
INGREDIENTS

81
MEDIA OF ADVERTISEMENT

MEDIA OF VERKA AMUL TODAY MILK

ADVERTISEMENT
TELEVISION
NEWSPAPERS
BROCHURES
HOARDING
DISPLAY

FREQUENCY OF CONSUMPTION

FREQUENCY OF VERKA AMUL TODAY MILK

CONSUMPTION
ONCE IN A FORTNIGHT
DAILY
WEEKLY
MONTHLY
QUARTERLY

REASONABLE PRICE

PRICE OF DAIRY VERKA AMUL TODAY MILK

PRODUCTS
BELOW 5
5-10
10-20
20-30
ABOVE 30

82
CONSUMERS BRAND LOYALTY

BRAND LOYALTY ACTIONS VERKA AMUL TODAY MILK

POSTPONE YOUR

PURCHASE
SWITCH OVER TO OTHER

BRANDS
GO TO OTHER SHOP FOR

SEARCH OF PREFERED

BRAND

REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED

SHIFT TO NEW BRAND OF VERKA AMUL TODAY MILK

THE PREFERED PRODUCT

NO, NOT AT ALL
MAY CONSIDER
NO, SHALL NOT
CANT SAY

83