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CENTRE CODE NO. 01696

A STUDY ON
CONSUMER AWARENESS & SUPPLY CHAIN MANEGEMENT OF SUDHA DAIRY

SUBMITED TO SIKKIM MANIPAL UNIVERSITY IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUISNESS ADMINISTRATION MBA(2008-2010)

SUBMITTED BY:

RAJESH KUMAR SINHA


ROLL NO. - 510812241 MBA (MARKETING MANAGEMENT) SESSION (2008-2010)

DECLARATION
I hereby declare that the project entitled

CONSUMER AWARENESS & SUPPLY CHAIN MANEGEMENT OF SUDHA DAIRY


Submitted in partial fulfillment of the requirements for the degree of Master of Business Administration to Sikkim-Manipal University, India, is my original work and not submitted for the award of any other degree, diploma, fellowship or any other similar title of prizes.

Place Date

: Patna :

(RAJESH KUMAR SINHA)

Reg. No.: 510812241

EXAMINERS CERTIFICATION
The Project Report of
RAJESH KUMAR SINHA

CONSUMER AWARENESS & SUPPLY CHAIN MANEGEMENT OF SUDHA DAIRY


is approved and is acceptable in quality and form

Internal Examiner (Name and designation)

External Examiners (Name and designation)

CYBOTECH CAMPUSTM
(A Unit of Anwesha Pvt Ltd)
2nd Floor, Verma Centre, Boring Road, Patna

_____________________________________
CERTIFICATE This is to certify that the project report entitled

CONSUMER AWARENESS & SUPPLY CHAIN MANEGEMENT OF SUDHA DAIRY


Submitted in partial fulfillment of the requirements for the degree of Master of Business Administration of Sikkim Manipal University of Health, Medical and technological sciences (RAJESH KUMAR SINHA) has worked under my supervision and guidance and that no part of his report has been submitted for the award of any other degree, Diploma, Fellowship or other similar titles or prizes and that the work has not been published in any journal or Magazine. Prof.R.B.Singh
MBA(P.M.I.R) (Guides Name and Qualification)

PREFACE
The study of Consumer awareness and Supply Chain managent occupies a significant place in the study of marketing effectiveness of any firm, because sale is life blood of the business. With the expansion of business, the life of the market to be covered to sale large quantity of goods becomes too large to control by the owner of the business under taking personality. Hence, this arises the need of sales organization to perform the various functions. These functions include market research, product planning, sales for casting, determination of selling policy, selection of channel of distribution, selection, training, supervision and remuneration of the sales man etc. Indeed, Supply chain is any sequence of institutions from the producers to the consumer including one or a number of middle men. I have undergone Sudha Dairy Project, in Patna during my project training. I conducted the market survey and determined the channel of distribution of product of Sudha Dairy in Patna. To emphasize the very practical aspect of management education Cybotech Campus, Patna, Patna makes necessary arrangement for Project training for MBA course. In order to collect the primary data I visited the outlets of different area as Well as conducted the many shops and whole sellers survey. I hope that our finding and suggestion will be handy and useful in improving their market share. I am extremely obliged to the Mr. Vijoy Kumar & my guide Mr. Abhijit Kumar who helped me during training period and report writing.

ACKNOWLEDGEMENT
. There are a few things that come in the life of a person may be for a short span of time, but leaves an ever shining impetration into the mind. My training is one of the events, which will be ever shining in my life. While submitted this project report I feel my moral duty to pay thanks and mention the names of the names of the person whose co-operation guidance and constant encouragement helped me in each and every step during the preparation of this project work. First of all, I express my gratefulness to our Centre Head Manoj Kumar for the excellent academic environment and commendable facilities. I enjoyed as a student of the institute. I am indebted to my guide Mr. Abhijit Kumar, Business Head, Cybotech Campus, Patna for his valuable guidance during the course of my study, I express my sincere thanks to him. 1 express my eternal gratitude to Mr. Vijoy Kumar Marketing Manager S D P, Patna for permitting me to carry out this project work in his organization. I am also thankful to Mr. Niranjan Prasad for their substantial help and insightful suggestion during the course of the study. Once again, I express my hurtful gratitude to the institute family and staff of the organization for their co-operation for this project report.

(RAJESH KUMAR SINHA)

OBJECTIVE
. Understanding customers perception on Patna Dairy as a brand. Understanding awareness regarding the hygienic factor of using Packaged milk Understanding different reasons (good or bad) for them to use or not to use, the factors affecting its success & the modus operand involved Competitors Analysis on product attributes. Market analysis with respect to Distributors or Retailers involvement in the companys success.

TABLE OF CONTENT

CHAPTER - 1 INTRODUCTION 1.1 Introduction 1.2 Objectives 1.3 Profile of Organization 1.4 Organizational Structure 1.5 Government Policy CHAPTER - 2 ACTIVITIES & PRACTICES OF P.D.P. 2.1 Procurement of Raw Materials 2.2 Marketing Strategy (a) Products (b) Pricing Policy (c) Promotional Devices CHAPTER - 3 INTRODUCTION & THEORETICAL GROUND 3.1 Introduction to marketing 3.2 Definition of Management 3.3 Consumer Behavior & its Concept 3.4 Concept of Consumer Behavior 3.5 Consumer Responses 3.6 Supply chain Management BACK

CHAPTER -4 MARKETING RESEARCH & METHODOLOGY 4.1 Marketing Research 4.2 Sources of Data Collection 4.3 Research Approach 4.4 Research on Methodology 4.5 Data Collection & Analysis of Information CHAPTER - 5 ASSUMPTION OF MARKET 5.1 Analysis & Statement of Consumer Responses 5.2 Consumer Reaction 5.3 Representative of Sudha Dairy 5.4 Analysis of Strength, Weakness, Opportunities &
Threats 5.5 Limitation

Appendix Questionnaire Bibliography

CHAPTER 1. INTRODUCTION
1.1 1.2 Introduction Objectives

1.3 Profile of Organization 1.4 Organizational Structure

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INTRODUCTION
Before dealing-with the topic profile, I would like to state here a background of co-operative societies: a principal on which SUDHA works. India primarily is a country of farmers. She is largely dependent on the agriculture products and animal husbandry under the cover of Agriculture. Due to massive Dairy Development milk production suddenly showed an upward trend. Govt. provides heavy subsidies to Maintain & operate the Govt. liquid milk plant as public utility activity. Most of the big Dairy processing milk and manufacturing milk products in the country are in the co-operative sectors. Under the five year plan, milk marketing flourished a lot. In Bihar, SUDHA has a brand of COMFED came up on the lines of co-operative societies. Sudha came into existence on 1983 by the law passed in parliament. SUDHA is just a brand name of Bihar. State co-operative Milk Federation LTD (COMFED). The law passed in the parliament gave rise to COMFED. COMFED came up on the pattern of Anand Milk Co-operative Federation (GUJARAT) the first of its kind in the world . The Bihar State Dairy Co-operative were passed on to COMFED. The founder of SUDHA was Mr. S.VIJAY RAGHVAN. There are 5 milk union under Sudha . Each have an Autonomous right but are under direct control of COMFED. They are:1. Vaishal Patliputra Dugdh Utpadak Sahknri Sangh Ltd. Patna. 2. Deshratna Dr. Rajendra pd. Dugdh I Utpadak Sahkari Sangh Ltd. Barauni 3. Tirhut Dugdh Utpadak Sahkari Sangh Ltd. Muzaffarpur. 4. Mithila Dugdh Utpadak Sahkari Sangh Ltd. Samastipur 5. Shahbad Dugdh Utpadak Sahkari Sangh Ltd. Arrah

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BACKGROUND
Patna was one of the milk shed identified under Operation Flood-1 (OF-1) for implementation of the programme. A hundred thousand litres per day capacity Feeder Balancing Dairy (FDB) &100 MT per day capacity feed plant (CFP) were set up under this programme.

In order to implement the programme properly & also for organizing the milk procurement activities & for the management of above two plants, the Bihar State Dairy Corporation (BSDC) was formed in the year 1972. The Dairy Corporation was to develop the dairy co-operatives both at the village level cooperatives would take over the entire infrastructure created in due course.

The Corporation after recruitment & training of necessary staff positioned the procurement & Input wing (P&I) from 1975. A spearhead team (SHT) was deputed from National Dairy Development Board (NDDB) from the same year for helping the corporation in organizing & developing the co-operatives. Though the progress in the initial years was encouraging the programme for obvious reasons couldnt achieve the goals for which it was established.

Subsequently the State Govt. felt it necessary to request the DAIRY BOARD (NDDB) for taking over the infrastructure created on management basis. The National Dairy Development Board (NDDB) took over the management of infrastructure with effort from 1SI October 1983 under the banner of Patna Dairy Project (PDP).

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PROGRESS OF PATNA DAIRY


The National Dairy Development Board (NDDB) immediately after taking over the project positioned an integrated Spear Head to restructure the milk procurement activities & for streamlining the working of the FDD & CFP. Under the management of NDDB the project had not only made excellent progress but had been able to establish the fact that the co-operatives could function equally well in Bihar too & what is essential is the atmosphere & guidance.

Along with the organization of milk procurement activities & management of both the plants on commercial lines, the NDDB took special care to develop the Vaishal Patliputra Dugdh Utpadak Sahkari Sangh ltd. (VPDUSS) the milk shed level co-operatives for taking over the project once the DAIRY BOARD withdraws its management. NDDB handed over the Patna Dairy Project (PDP) to Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd. (VPDUSS) with effect from 1st July 1988.

PROGRESS UNDER VAISHAL PATLIPUTRA DUGDH UTPADAK SAHKARI SANGH LTD (VPSDSS)
The major tasks before the Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd. (VPDUSS) was to see that the excellent infrastructure developed by the National Dairy Development Board (NDDB) is not only maintained but also see that the pace of development is not hampered. The vpduss has been able to accomplish these task to a greater extent. Comparatively progress of the project over the years is enclosed as annexure-l (a) & (b).

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PRESENT STATUS
MILK PROCUREMENT:
There are at present 1285 nos. of functional Dairy Societies in the area of PDP covering the districts of Patna, Vaishali, and Nalanda & Fringe areas of Saran with a total membership of 77035. The daily average procurement has reached up to 167808 liters during year 2008-2009. It is hoped that the project will collect above one & a half lakhs liters of milk per day in commencing year. There are 198 nos, of women co-operatives exclusively managed & run by rural women folk. While the union has fairy good no. of functional societies by increasing the members participation. The graphs showing the nos. of functional societies, no. of members increasing yearly, & daily average lean months procurement are enclosed as Annexure no. II, III, & V. The co-operative Development (CD) programme was also initiated from March, 1991 with the assistance of NDDB. The graph showing the average producers price over the year is enclosed in Annexure VI.

THRUST AREAS :
1. To make Sudha brand a market leader by making Sudha Milk & Milk Products a consumer delight & ensuring that the esteemed customers get value for money. 2. Consolidation of the DCSs already organized leading to increase milk.procurement. 3. Further improvement in the involvement/participation of members in their co-operatives. 4. Bridging the flush-lean gap further. 5. Popularizing all the input programme. 6. Increasing the throughout & sale of both milk & milk products as well as cattle feed, by pass protein feed & UMB. 7. Reducing further the handling losses & increases the utilization of plant capacity 8. Optimizing the utilization of all consumables.

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CHAPTER 2. ACTIVITIES & PRACTICES OF P.D.P.


2.1 Procurement of raw material 2.2 Marketing strategy (a) Products (b) Pricing Policy (c) Promotional Devices

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Marketing strategy
At the very outset of its marketing campaign P.D.P.restored to a smaller extent in the advertising of its products. Instead, it stresses on other cheap ways viz. hoarding, counter display, towards its wall painting & posters for drawing the market attention to its product on large. But the changing market phenomenon, like fierce competition & range of products coerce the authorities to get customer aware to those products. So it gave a new shape to the advertising aspects media for its varieties of products. Really, these endeavors has come up with positive remark from the sale of customers & sale has gone tremendously up of products like Ice-cream, Ghee & Lassi.

However, the level of advertising with range of products is very less.The least response of authorities may have toward outcome in near future. Because the advertisement retains old customers & make a new. If the competition would have inception in the same strata of market, It may lead to short to present level of customer of P.D.P. & above all the mis conception prevailing about the P.O.P.can only be expunged through the intense advertisement of products & its qualities.

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A. Pricing policy : Often price is the major basis of competition in the market. It is one of the major aspects which the competitors watch very closely. The price of the product will have a noticeable effect on its sale , on the firms total revenues & on its final profits.

A part from the firm, price is important for the buyers & the society. The demand of the product is greatly affected by its price. Price may often act as an indicator of quality. According to the law of demand, a decrease in price would lead to the increase in demand. However, in certain cases, increase in price may be perceived favourably by the buyers who might interpret it as a consequence as a increase of quality.

In setting the price P.P.P. follows various ways: Producers attitude : The organization is setting the price of its product after seeing the cost of miik supplied by producers. The organization also considers the consumers attitude in determining the price of its products. The organization also considers the competitive price as a basic approach for positioning its own price. The organization does not consider the demand of its product in determining the price, because it does not want to exploit. the market So, organization tends to limit the profitable price of its products.In this way, it has adopted marginal policy keeping in view the interest of societies milk producers & consumer.

B. Promotional Devices

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These are four major tools of promotional mix. a. b. c. d. Advertising Personal selling Publicity Sales Promotion

2. Nature & Definition Of Product : It is perishable in nature. 3. Branding : It is name, term, sign, symbol or design which is intended to identify the goods of manufacturer/seller or a group of sellers & to differentiate from those of competitors. Milk :- The different types of milk containing different % of fats & S.N.F. have branded differently to give consumer easy selection of their products. Now the various brands & their % contains of fat & S.N.F. are as mentioned below. Types of Milk Name Brand Sudha Gold of % Fat
% S.N.F.

Full Cream milk

6.0% 9.0%

9.0%

Standardized Milk Toned Milk Double Toned Milk

Sudha Shakti Sudha Healthy Sudha Smart

4.5% 3.0% 1.5%

8.5% 8.5% 9.0%

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4. Packaging : Physical properties require packaging decisions to create such benefits as protection economy, convenience & promotion. Markets have to develop a packaging concept & test to as certain the achievements of desired objectives in a comfortable fashion. Milk :- All the four types of milk are packed in different types of packets. The filling in packets are done through automatic fill-pack machine. The tone pack are transparent & attractive & draw the attention of the consumers. Sudha Gold has red pack,Sudha Shakti has green pack, Sudha Healthy has blue pack where as Sudha Smart has yellow pack. 5. Quality : There is quality control selection in P.D.P. which checks & maintain the quality of its product. They very careful about this quality. Though there a few no. of complain regarding smell, freshness, quickspoilage etc. which are immediately attended.

MARKETING STRATEGY :
A. Product Policy: It contains following aspects 1. Kind of product manufactured. 2. Nature & definition of product. 3. Branding. 4. Packaging. 5. Quality.

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1Kinds of product manufactured: (a) S.N.P. Toned Milk : It is the milk having 3 to 3.1% (at & 8.5% A very popular milk among consumer.
(b) Doubled Toned Milk : It is the milk having 1.5% of fat & 9%

of S.N.F. This type of milk is desirable for persons having cardiac & other diseases as it has very low fat, but high S.N.F. content. It serves as fat free nutrient to the parents. In Patna, actually most people have not a favourable attitude towards toned & double toned milk, They think that these milk packets are cream less milk & are not suitable for health. This is the main factor which affects the marketing of toned & double toned milk.

(c) Full Cream Milk : It is the milk 6% fat & 9% S.N.F. as regard to FCM it was found during market survey that due to its fat content people have felling that it is of nutrious falue. But due to its high price many people do not prefer this pack. It has great demand among students living in Hostel & Lodges.Families of businessmen prefer this due to its rich Cream contents. (d) Standardized Milk : The fat contents of milk is 4.5% with 8.5% S.N.F. This packed milk having highest deemed in the market. Due to its reasonable price & good quality with sufficient fat content every class of people prefers this pack.

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CHAPTER 3. CONSUMERS AWARENESS AND SUPPLY CHAIN MANAGEMENT 3.1 3.2 Introduction

Significance & Objectives of the Study 3.3 Scope of the Study

3.4 About Distribution Channel 3.5 Objective of Distribution Channel 3.6 Evaluating the Major Channel Alternative 3.7 Factors Influencing a Producers Choice Of Distribution Channel

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INTRODUCTION TO MARKETING
In earlier periods of human history, the problems of human beings resolved around the question of survival and needs varied from region to region and changed with the variation in environment and circumstances. With the passing of time, human needs became more sophisticated and segmented and therefore to satisfy these needs, more products and services were needed. In our modern world, human behavior and needs are no longer static, they are constantly changing. Thus the demand for products and services are also constantly changing. The marketing of products and services essentially deals with this situation.

In ancient times, the transactions between two persons or two organizations were merely exchange of goods that is commonly. Known as barter system. However, this barter system could not be used as an efficient a systeD:l of transaction as the value of goods defer from place to place and changed time to time. Moreover, with the passage of time, the human knowledge about available products and its values also became easier Thus, the system of exchange of goods could not be effectively used. Besides, the barter system had serious limitations not only to volume exchange process but also to acceptable quality available in the market, which is acceptable to the customer. Therefore, with the passing of time, more acceptable system of buying for goods or services in kind or cash or whatever acceptable currency, became more and more relevant. Thus process of exchange of money for goods and services to satisfy both sellers Offer to sale and buyers need to purchase - gave birth marketing process or activity.

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ROLE OF MARKETING IN BUSINESS


Marketing management derives its strength from customer satisfaction and hence continuous and sustained marketing efforts are needed to maintain this satisfaction level. The marketing companies sell their products and services to satisfy consumers needs and as long as this equation is satisfied, the relation between the marketing company and target consumers will be healthy and satisfactory. However, with changing consumer buying behavior and competition, the products need to be upgraded or modified to keep pace with the changing situation in the market and this process should be continuous, otherwise the product will become either obsolete or undesirable.

Marketing efforts result in new products, new packaging ideas, new and better products.

Marketing helps to know the situation in the market identify the competitors, identify the consumers and take suitable and appropriate actions. That is it helps the company to develop and advertise the brand through various promotional and advertising technique. Developing and advertising a brand comes under brand management which forms an integral part of the marketing system Brand management helps the company to set aside his product from that of his competitors in order to help the consumer identify his product. We shall discuss about brand and its concept in the subsequent chapter.

MANAGEMENT

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Management is a universal activity in the modern world. It is an essential part of any group its influence can be observed in all the type of organization, decision-making procurement of the resource coordination of activities and direction of the peoples are the important activities in all organizations have certain elements of management in common.

MANAGEMENT DEFINITIONS
G.R TERRY Management is a distinct process consisting of activities of Planning, Organzing and Controlling perform to determine and accomplish stated objective with the use of human being and their resources. HENRY FAYOL To manage is to forecast and to plan, to organize, to co-ordinate and control.

CONSUMER BEHAVIOR

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INTRODUCTION TO CONSUMER BEHAVIOR


The main objective of the marketing management is to create the demand and increase it regularly. For fulfilling this objective, marketing managers prepare wide marketing programs and these are called profitable marketing mix. According to marketing point of view these are input or ingredients of marketing programs to a large extend. The demand for the product depends upon the attitude perception, motives and behavior of the consumers. Also marketing managers have to make adjustment to the situation.

The product may be excellent, the firm may be reputed, sales policies and promises may be mire attractive that competitors. But if t incur loss under such situations market can find only one solution that is arranged their mix according to need to customer . Customers buying behavior is a process, through which inputs like buying power, interpersonal influence, and environmental factors. And their use through process ( perfection of wants, search, purchase decision, product use an evaluation) and actions lead to satisfaction and wants. Purchasing behavior may be viewed as an orderly where by the individual interacts with his environment for the purpose of making market decision on goods and services of dozen categories if human breathing, buying and so forth one of the primary importance to market is buying. Buying behavior involves a complicated series of stimulus and response reaction to many factors of motives. These motives may be expressed or unexpressed and are based upon deep- seated needs of more

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openly felt wants. When someone buys something, he is psychologically satisfied both a need and wont provides him with certain mental and physical satisfaction, A modern buyer wants to know not only for what a product can do but also for what thus mean. According to Webster consumer behavior is all psychological social and physical behavior or potential customer as they become aware of evaluates purpose consume and tell other at out-products and services Buyer behavior emphasis that this behavior is both individual ( psychological ) process and group (social) process it follows the buyers from awareness through to post purchase evaluation It includes communication purchasing and Consumption behavior it is broad enough for both consumers (individual and house hod) and industrial (organizational) buying behavior. Buyer behavior is comparatively a new filed of study it is the attempts to understand human actions in the buying role. It has assumed growing importance under market oriented and customer oriented marketing planning and management. Market for many product and the growth consumerism and consumer legislation. Since 1960 have created interest in buyers, behavior and the formulation of marketing mixes to respond favorable buyer behavior in the market place.

Consumer buying behavior to wards their needs-

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1.

Psychological need- these are the needs that are related to survival and maintains of human life this needs include for satisfying hunger, thirst, shelter sleep, air and water these are the basic needs and till they are satisfied the other needs are of little importance.

2. Safety and security needs after satisfying the psychological needs, people want the assurance of maintaining a given economic level. They want job security personal body security, security of income provision for old-age, insurance against risks 3. Social needs - Man is a social being. He is there fore interested in the conversion sociability exchange of feeling and grievances. Companion ship, religion belongings etc.. 4. Esteem and status needs -This needs embrace such things as selfconfidence. Independence, Achievement, knowledge and successful stock they are also known as egoistic needs. They are concern with (he prestige and status of the individual. 5. Self-fulfillment needs - final step fulfillment it is the desire to achieve the maximum of once capabilities. Its fulfillment depends upon the prior fulfillment of the more of the basic needs.

Factors influencing consumer behavior

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Psychological factors-lifestyle informs is how and why consumers behave as they do. Changes in how in our lifestyle are mainly shaped by economic factor. As our economic and social patters change marketers have to find out corresponding changes in lifestyle factors

This include family life cycle increasing women employee (by 1990 women as may be about 30 % of all workers in India). Change in educational and occupational patterns. Life style patterns involves preference to purchase in a certain way. It includes taste and attitude psychological and sociological factors; collectively the study of socio psychological influences has created a whole new field of marketers buyer behavior. The next chapter deals exclusively with buyer behavior in the market.

Social factors- this theory explains buyer behavior in term of social forces such as social classes, reference groups, culture, lifestyle the family, it states that the great deal of consumer behavior is .....................not so much buy real needs for prestige different factors such as culture, sub-culture and each of the provides more specific identification and socialization for its members over and available sets of products at given prices. The purchasing decision is based on economic calculation and reason. Economic model of consumer behavior is urn-dimensional according this model. We have the following prediction about the buyer behavior .

1. The lower the price of a product, the bigger the quantity that will be brought.

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2. The higher the purchasing power, the higher the quantity that will be bought. 3. The lower the price of a substitute product, the lower the quantity that will be bought of original product. 4. The higher the incomes the higher the sales of ones products. 5. The higher the promotional expenditure the higher sales, but they availed it of this hypothesis does not rest on whether all individual . act as economical calculating machines. Thus, this model explains economic implications of several factors connected with economic aspect related to a consumer.

Who Is The Consumer Market ?

The Consumer market consists of all the individuals and households who buy or acquire goods and service for persona! consumption consumer vary in ages, income, education, mobility pattern and taste, markets have found it worth while to distinguish between grounds and develop products and services tailored to their particular needs it the market, segments is large enough some companies at setup special marketing programs served this market.

What Do Consumers Buy :-

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Consumer Interest is in finding some basis of classifying vast number of consumer product. 1 Durable Goods :- Tangible goods are for example:Refrigerator, pressure cooker, clothing . these products are likely to need more personal selling and services command a higher margin and required more seller guarantees. 2. On-durable Goods :- Tangible goods which normally are consumed in or a few uses for example:- meat, soap. Since these goods are consumed fast* and purchased frequently they are likely to be made available in many locations and small margin and develop strong brand loyalty. 3.Services:- Activities benefits per satisfaction, which are offered for s example:- hair cut, repairs consumers services have characteristics of being intangible, perishable, variable variable and personal as a result they are likely to require more quality control supplier creditability and continuous availability. 4. Convenient goods :- Customer usually purchases - this consumer goods frequently immediately and with minimum effort in comparison example Tobacco products, news papers and blade. 5. Shopping goods :- These are consumer goods with the consumers in the process of selection purchase characteristically compares on such basis suitability, quality process and stiles for example:- furniture, dress, good used in automobiles and major appliances.

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6 Specialty goods:- These consumer goods with unique characteristics and brand identification for which a significant group of buyer and habitually willing to make a special purchasing effort.

When Do Consumers Buy :The occasion for consumer buying can be analyzed purchased along serve dimensions whether consumers purchased a product for example:- households with young children consume milk at a much faster rate than childless household. Marketing strategy for such items often based on segmented the market in to buyer with different consumption Heavy, medium light users. Mostly consumers buy goods at off-seasons only to avail discounting facility, purchases timing is also varying during the day or week. Economic conditions also affect consume purchase timing particularly for durable goods or shopping and specially goods when economic out look is poor consumer post-pone major purchase.

The basic motive of consumer buying: -

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There is a few basic motives that causes people to buy: -

1. comfort of conveniences : for which reason they purchase labor saving devises and in numbering conveniences at home, at work and insertion such as gas cylinders, stove and pressure cookers, electronic iron soft bed, good nursing and tasty food, types of food, types of convenience like fans, air conditions, washing machines and luxurious articles.

2. Safety and protection :- people generally fear loss of life, health, friends, job reputations and comfort as that cherish for becomes greater on this counts are purchased house, investments, insurance policy, drug tonic and health giving drinks and many other such items.

3. Safety of provide and variety :-people like to feel important in the society among friends club to get administration acquire state symbol which leads to verity. For all this ladies purchase costly customers, jewelrys, joining expensive club to theaters and purchase product of arts have important and expensive home decoration objects, purchase, television, refrigerators, costly furniture and variety of costly furniture and variety of costly goods.

4. Love and affection: - it consists of a sense of duty love of family society and desire to see just done to oneself and others. Readymade, baby suits, childrens toys and even life insurance policy to their children. Labor saving devices, beautiful present, costly jewels, fashion perfumes, romantic and sexy novels for their wife are generally purchased to satisfy the buyer affection motive.

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5. Gain and economic motive :- Some people like to make purchase to, make purchased enable them to personal benefits or gain monitoring acquire better things at lower costs. A businessman wants to purchase things which they can go around shops buy her needs of grocery and desire to save money and utilize this future.

6. Adventure and excitements :- People are curious to this. They like new things, new places to visit in order to satisfy their desire. They purchase latest clothing, new books and many such things.

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INTRODUCTION
The study of Supply chain occupies a significant place in the study of marketing effectiveness of any firm, because sale is life blood of the business. With the expansion of the business, the life of the market to be covered to sale large quantity of goods becomes too large to control by the owner of the- business under taking personality. Hence, this arises the need of sales organization to perform the various functions. These functions include market research, product planning, sales for casting, determination of selling policy, selection of channel of distribution, selection, training, supervision and remuneration of the sales man etc.

Indeed, Supply chain any sequence of institutions from the producers to the consumers including one or a number of middle man.

As maximization of wealth is the main objective of every business and this aim could be achieved if the profitability of the firm is increasing and if it is decreasing, then it would be hard enough to operate the business for long. So channel of distribution should be taken very consciously/

It can therefore be said that the firm should adopt and maintain an effective channel of distribution.

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After production, the next problem faced by a producer is that of selling and distributing because production is made to satisfy the need of the consumer, so it must reach to the consumer for whom it is made. There are different channel of distribution i.e. goods may be passed on to the consumer through distributor and retailers or only through subdistributor or directly by the producers to the consumers. The producers may choose any one of channels considering various factors, which force the producers to decide about one channel or the others. Where a choice is available with the producers to pass the goods on the consumers then he must choose channel which may cost least so that unnecessary burden of distribution is not put on the consumer resources. There are two critical aspects of channel, the first is, channel choose for the companies products intimately affect every other marketing decisions i.e. pricing decisions, advertising decisions, sales force decisions involved the firm in relatively long-term commitments to other firms.. It is my passion to know the running distribution channel can be applicable for long run any change required. If it is require then at which level at where that can good for such.

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SIGNIFICANCE AND OBJECTIVE OF THE STUDY


In the era of cut throat competition and globalization/ of business every company face, a series of hurdles in selling the product in the market. Therefore it becomes necessary to keep eyes every aspect of management. Needless to say that distribution channel becomes the most important aspect. It helps not only the management to increase its sales and its micro interior operation but also helps to know retailers needs and wants.

OBJECTIVES : The main objectives can be classified as follows :1. To analyses the trends of distribution channel. 2. To provide information about the factors which can assist the company in increasing sales. 3. To examine the various pit falls that been occurred during the distribution of companys product. 4. To examine the problems thoroughly. 5. To suggest a course of action to kick these problems away from better market share through an effective channel of distribution.

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SCOPE OF THE STUDY


The study entitled Consumer Awareness & Supply chain of Sudha in Patna However, I survey only 140 people in Patna region. The survey of the customer reflects light on the effectiveness and efficiency of running system. The findings are based on the response given by the Customers exploratory cum descriptive research was used in the research design. The observational research could have been a very input to the research but due to various compulsions it could not happen at a desired level. Therefore, we like to say that findings should not be considered universally applicable.

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Supply Chain Management (SCM)


SCM is larger in scope than both physical distribution and marketing logistics. It encompasses materials management task as well. Supply chain actually refers to the whole business chain, encompassing procurement of inputs, in-bound logistics, conversion of inputs into products, physical distribution/marketing logistics and channel functions, which finally take the end product to the ultimate consumers Essentially, SCM can be viewed as the combination of materials management and end product distribution, which constitute the two vital component? of the business process and form the key tasks at the front and back ends of the process, respectively. It can be seen that the supply chain is in effect the firms value chain. Value is actually spread through the firms supply chain. A Firm can optimise its total customer value by managing activities in the supply chain in an integrated manner, treating them as one continuous chain. The supply chain constitutes a value delivery network. That is why it is often said that firms compete in the marketplace using their supply chains as the weapon, not their products and brands. Superiority in supply chain is thus a major competitive advantage. A firm with the better supply chain wins in the market. We have discussed the value chain concept in detail in the two chapters on Industry Analysis, and Competitive Advantage.

42

The SCM approach, no doubt, has some merits. It facilitates the integrated handling of the functions of the business, especially the procurement function and the logistics functions at the front and the back ends of the business. As a result, it comes handy in value creation/ value addition. In this text, we shall in any case avoid the SCM approach. After all, in a marketing text, there is no scope for discussing materials management. We shall confine ourselves to distribution of end products. We shall, however, make a slight deviation from the traditional way of handling the subject. Instead of treating it merely as a physical distribution task, we shall treat it as marketing logistics. IMPORTANCE OF PHYSICAL DISTRIBUTION MARKETING LOGISTICS Physical distribution/marketing logistics forms a pivotal part of the marketing task. Confers Place and Time Utility on Products It is physical distribution that confers place-utility and time-utility to a product by making it available to the user at the right place and at the right time. Thereby, it maximises the chance to sell the product and strengthen the companys competitive position. If any product made in any place could be consumed in its entirety at the very place of production and at the very time of production, there would be no need for physical distribution of that product. But such products are very rare. In practice, almost every product gets consumed at places and times that are different from those of their manufacture. They have to be carried to places of consumption; they have to be stored; and they have to be distributed.

43

Where Production Locations and Markets are Distanced, Physical Distribution Becomes more Crucial In some cases, production locations are totally dictated by considerations, like proximity to sources of raw material. As a result, the points of production might be far away from the markets for the product. In some cases, huge production capacities get established at a given location on considerations of technology and economies of scale. In all such cases, the product has to be marketed over an extended territory; it has to be transported over long distances, stored for a considerable length of time and sold. Then, there are products, which are impacted by the seasonality factoreither production is continuous but demand is seasonal, or demand is continuous but production is seasonal. Here too, physical distribution becomes particularly crucial. It has to perform the balancing act between production and consumption.

COMPONENT FUNCTIONS OF PHYSICAL DISTRIBUTION/ MARKETING LOGISTICS The component functions of physical distribution/marketing logistics are shown in Chart 27.2. .The three major functions are: Transportation Warehousing Inventory Management We shall discuss each of them in detail. But before that, let us understand how a physical distribution system has to be designed.

44

DESIGNING A PHYSICAL DISTRIBUTION SYSTEM The steps involved in designing a physical distribution system are shown in Chart 27.3. Articulating Distribution Objectives and Specifying Minimum Service Level Desired in Product Delivery As first step, the distribution objectives of the firm must be properly articulated and the minimum service level to be guaranteed in delivery must be clearly specified. In fact, the guaranteed minimum service level in delivery is the key to a physical distribution system. It is also the touchstone for measuring the efficiency of the system.

Component Functions of Physical Distribution/Marketing Logistics Planning the overall physical distribution system Secondary transportation, secondary handling and sub In plant-warehousing distribution Transportation Inventory management at each level In the chain Field warehousing Order processing/ execution Receiving Accounting/record keeping Handling Communication

45

Steps Involved in Designing a Physical Distribution System Articulating distribution objectives and specifying the minimum service level desired in product delivery. Finding out what the customers want in product delivery. Finding out what competitors do. Keeping the costs of the system as low as possible, without sacrificing the guaranteed minimum service level. Keeping the system sufficiently flexible.

TRANSPORTATION The importance of transportation in physical distribution emanates from a variety of factors. At the beginning of this chapter, we explained in detail the factors that contribute to the importance of the physical distribution job as a whole. This applies to transportation. Transportation confers time utility and place utility to the product; it determines the companys Main Tasks in Transportation Management Assessment of the transportation requirement Choosing the mix of transport modes Deciding the routing Development of operational plans Implementation/review Control of transportation costs

46

customer service; it also has a crucial bearing on the other elements of physical distribution and marketing, like warehousing, inventory control and channel management. Finally, transportation is also a very important cost element in most businesses. Basically, transportation management involves decisions on : How much to move? When to move? Where to move? By what mode, or combination of modes to move? : ; The considerations in making these decisions are: (a) the lead time for stock replenishment (b) sales expected in the territory in the intervening time (c) the normal cycles of inventory build up at the warehouse/dealer points. If a firm can estimate these factors fairly accurately, it can make the basic decisions on transportation. In a fundamental sense, transportation has to be based on the sales forecast. Decisions on when to move, how much to move and where to move will essentially depend on the sales forecast.

WAREHOUSING

47

Warehousing is the second major component of physical distribution. Warehousing management has two distinct and equally important parts: (i) the physical job of creating and running the network of storage points, and (ii) the managerial task of controlling inventory levels without sacrificing service levels. Though interrelated, they require separate and detailed discussion. We shall, therefore, devote two independent sections to the subject. In the first, we shall deal with the warehousing aspects and in the second, with the inventory management aspects. Role and Importance of Warehousing Role and Importance of Warehousing Like transportation, warehousing too vests the product Storage reduces the need for instant transportation, with time utility and place utility.which is often difficult and costly. In the case of some commodities, warehousing vests Storage is also a competitive advantage, as with better the product with form utility as well, storage, better servicing of the channel and consumer It is common knowledge that a certain level of storage is possible.inescapable in marketing of most products. Storage also helps in balancing demand and supply, For products with high seasonably, storage is needed and in stabilising prices.on a larger scale. In some cases, sub-distribution realities necessitate In the case of some products, storage by itself acts as extra storage a stimulant of demand. Designing a Warehousing System

48

In most cases, products flow from the factory to the consumer through a long winding chain, consisting of multiple tiers of warehouses and multiple tiers of marketing intermediaries. In designing a warehousing system, the following basic questions relating to this flow become significant. How many warehouses should we have? Where should we locate them? What should be the size or capacity of each of them?

Determining the Number, Location and Size of Warehouses Determining the locations and capacities of the warehouses is the crux of the task. On this depends the firms customer service level, its competitive advantage in distribution and its inventory cost structure. While one might point out that it is the inventory turnaround that primarily determines inventory costs, the fact remains that the costs are also influenced by the locations and spread of the inventories at how many places and in what size are stocks kept. Moreover, inventory turnaround itself is partly the outcome of the manner in which the inventory is spread.

Determining the number : The optimum number will depend upon the nature of the product, the size and geographical spread of the market serviced by each warehouse, the current and potential sales in the

49

territory, the extent of seasonality of demand if applicable, the level of peak demand, the trade patterns, the number of distributors/retail outlets to be serviced by each warehouse, the acceptable order-execution time, the possible speed of replenishment of stocks and the cost involved in operating warehouses. Future requirements and pattern of competition are also relevant factors in deciding the number and sizes of the warehouses. Choosing the size : The decision on the size of the warehouses must be taken in alignment with the decision on their total number. After a firm assesses the sales potential in each warehouse territory, the question to be decided is: What is the optimum inventory holding needed for realising the sales projected for the territory? Warehouse size and costs arc inversely interrelated. So, as a general rule, small-sized warehouses are uneconomic compared to larger ones. At the same time, if the sales projected are small, warehouse size has to be small. Customer convenience and channel service will call for a large number of small-sized warehouses spread extensively all over the marketing territory. There will also be the additional consideration of future requirement. As a general rule, it can be said that by reckoning the volume of sales and the desired market share in the area covered by the warehouse, and by applying the factors of transit time and peak season demand, the optimum warehouse capacity at a given location can be worked out.

Choosing the exact locations : Choosing the exact locations of the warehouses is as important as choosing their number and capacity. The locations must be suitable in terms of market factors and availability of transport facility. Rent rates, commercial suitability of the location,

50

implications of local levies, etc., have also to be looked into. Above all, availability of suitable godown space has to be considered.

Elements of Inventory Costs Interest on capital tied up in the inventory Postage and communication charges Warehouse rent Administrative overheads Staff salaries Costs of handling, unloading and stacking Insurance Loss due to damage and deterioration while on storage Rates and taxes Cost of order processing/record keeping/accounting Stationery

In many cases, warehousing as a whole becomes inefficient on account of unreliable sales forecasts. When actual sales show great divergence from the forecast, any warehousing plan naturally goes haywire and its effectiveness suffers a setback,

INVENTORY MANAGEMENT Inventory management is the third major component of physical distribution task. It will be obvious that without effective management of finished product inventory, it is impossible to run any business efficiently and profitably.

Inventory is Inescapable Carrying inventories is inescapable in most businesses. This is because the producing and consuming activities take place at different

51

times, in different locations and at different rates. Inventories are made up of several elements: operational stocks kept at the point of sale/ retail outlets for meeting ready demand is the first element; stocks in transit at any given point of time the second; then there will be stocks awaiting shipment; and finally, there will be buffer stocks for meeting emerging sales requirement. Elements of Inventory Costs Interest on capital tied up in the inventory is a significant element of the total inventory carrying costs. This is particularly true in businesses in which the turnaround of inventories is rather slow. In recent years, increased competition has resulted in accumulation of stocks in a number of businesses. And the slowdown in the economy wherever it has occurred, has added to the burden in this regard. Warehouse rents have also been going up. Naturally, inventory-carrying costs have been going up. Besides warehousing rents and inventory costs, handling costs, which include costs of clearance, loading, unloading and stacking, too have been going up. Issues in Managing Inventory and Inventory Cost The following are the main issues involved in the management of finished product inventory. Identifying the purposes served by the inventory. Establishing correct relationship between inventory purpose and inventory level, and deciding the optimum inventory level. Ensuring that the inventory is maintained at the optimum level. The crux is: How to decide the-optimum inventory? In simple terms, optimum inventory is the level that is sufficient to realise the projected sales, but not too high to erode projected profits. The controller of physical distribution has to determine at what inventory level, he can by and large avoid lost sale due to stock out. Lost sales is a key concept in inventory management. Inventory Control, a Balancing Act

52

It is quite easy for a physical distribution controller to completely avoid stock-out situations and consequent lost sales, if only he is allowed to maintain a very high level of inventory.But, no firm will allow excessive inventory levels; it is not sound business; it involves a heavy cost. Sound business will call for optimisation of inventory level/inventory costs, ensuring at the same time that the forecasted sales are realised. Obviously, one must assess the probability of run-out, quantify the resultant loss of sales/profit and offset it against the cost of holding additional stocks and realising the sale. Inventory management, thus, is essentially a balancing act. Optimum Inventory, a Compromise Between Cost and Service Inventory is primarily a function of customer service level fixed by the firm. Here, customer service level primarily means the ability to meet demand at the retail level as and when it arises from available stocks, without having to generate a back-order. ,It is in view of this close interrelation between inventory level and customer service level that inventory control essentially becomes a compromise between cost and service.

53

ABOUT SUPPLY CHAIN MANAGEMENT


In the era of societal marketing all leading companies arc emphasizing on maximum consumer satisfaction with minimum cost. Companies are not only interested to sale their products but they are also willing to know changing taste are preference of the consumer. They arc investing more and money to know even uncontrollable variable like human Psychology. Distribution system of a company helps to procure its largest sales as well as it helps to know the attitude and taste of consumers in changing environment downward communication. Which is helpful for a company to reach its objectives. Every Company has its own way to its product in marker. Few leading companies believe in their own outlet operation and they have on intermediaries. But several companies like Sudha operates with intermediaries. They usually take advantage of brand image as well as developed networking system of their intermediaries.

54

OBJECTIVE OF SUPPLY CHAIN MANAGEMENT


In any developing economy there is an increasing emphasis on specialization and the division of labor. Thus, there is a gap between producer and user. The purpose of a Supply chain is to bridge this by resolving spatial and temporal discrepancies in supply and demand. It involves following activities :(1) (2) Transfer of title to the goods involved. Physical movement from the point of production to the point of consumption. Storage. Communication of the information concerning the availability characteristics and price of the goods in transit, inventory and on purchase.

(3) (4)

The importance of these function depends upon the nature of goods themselves, Activities of Supply chain involve price fixation, reutilization of decision, managing finances promotional activities, arising communication, minimizing total.

55

EVALUATING THE MAJOR CHANNEL ALTERNATIVE

There are various channel alternatives available to a producer. Now the main problem before the producer into decide which of the alternatives would best satisfy long term objectives of the firm taking in view the factors which would affect the channel decisions. For this purpose, each alternative must be rated against economic, control, and adoptive criteria.

1. ECPMP, OC-CRITERIA For evaluating the effectiveness of channel of distribution, the economic criteria are the most importance since the firm pursues the profits. (i) What would be the sale volume under each of the channel alternatives. (ii) The second consideration is to estimate the selling and distribution costs of each alternative. (iii) Then the sale and the costs of different alternative should be compared having a comparative view of cost effect on the net profit of the firm Companies own sale force should also be taken in view and should decided whether have own its sales force of use the sales agency. 2. CONTROL CRITERIA In evaluation the channels the second main consideration is that of the control i.e., how would the marketer be in a position to have a control over a particular channel. The more would by the control the better would be the channel of distribution. For this purpose, he is to consider the channel relationship between various channels of distribution., their internets and attitude about companys product and conflict among them legal aspects in appointing a particular channel should also be considered.

56

3. The next consideration in channel decisions is to see whether the channel would be suitable to adopt the changing condition in future. Each channel alternative involving a long commitment must in grounds in order to be considered but it is not valid on the ground of adaptability. FACTORS INFLUENCING A PRODUCERS CHOICE OF A DISTRIBUTION CHANNEL

The best channel decisions in on that works best in the marketing strategy selected by the company. The channel chosen should achieve idea; market exposure and should meet target customers needs and preferences. The channel choices is influenced by several factors:(A) PRODUCT CHARACTERISTICS The product characteristics play on important rate influencing the channel selection. (i) Purchase FrequencyThe more frequently purchases are made; the more feasible it is for a manufacturer too use direct distribution. This requires extensive distribution which involves a financial consideration.

(ii)

Perish abilityPerishable and fashionable products such as dairy bakery products, fruits and vegetables or sea foods must be placed in the hands of the final users as soon possible after its production. These usually require more direct marketing because of the dangers associated with repeated handling and delays.

(iii) Weight and Technicality of the Product-

57

Products that are bulky, large in size and technically Complicated are usually sold directly by the company to the consumer because of the difficult to find middlemen for the lines.

(B) MARKET FACTORS OR CONSUMER FACTORS (i) Consumer or Industrial MarketThe producer of consumer product may choose a long.channel involving wholesalers and retailers depending upon the nature of product. Number of PurchaserIf the no. of consumer is large, the channel may be indirect and services of wholesalers and retailers become necessary.If customers are few, direct sale can be entertained through representatives. Size of OrdersIf customers purchase small quantities frequently and regularly, lengthier marketing channels are indicated. If the order from the consumer is large, the channel may be shorter. (C) COMPANY OR ENTERPRISE FACTORS (iv) (iii) (ii)

Financial ResourcesThe financial strength of the company determines which marketing tasks it can handle efficiently and which ones are to be delegated to the middlemen.

58

(v) Size of the CompanyA large company already handling a wide line of products is in a good position to take an additional product of the same line and handle it the same way, usually directly. A smaller firm or one with narrower lines, would find middlemen more practical. (vi) Product MixA fresh expansion of plant capacity may require more aggressive channel. If the product mix of a company is wider, it can deal with its customers directly.

(D)

MIDDLEMEN CONSIDERATIONS

(i) Services ProvidedIf middlemen can provide the services to the customer which the company requires to provide, the middlemen can be appointed otherwise company will sell the product direct to the consumer. (ii) AttitudeIf some middlemen desire to fix their own price for the product and if the company agrees to allow them to do so, they can very happily agree to sell the products of the company. On the other hand, if the company likes to follow the Resale Price Maintenance policy, the choice is limited. (iii) AvailabilityIf the company is late entrant in the field and his competitors have already tied up, the middlemen is a necessary part of a selective or exclusive distribution policy. (iv) Cost of Channel UsageThose channels should be chosen which ensure efficient distribution at least expenses and which secure the desired volume of sale. However, from the consumers point of view, the justification for the intermediaries is that they make is easy for him to buy.

59

(E) ENVIRONMENTAL FACTORS (i) Economic ConditionWhen economic conditions are depressed the producers choose shorter channels to cut costs. If there is multi point tax on sales, the line should be shorter to avoid the tax burden of consumers and they prefer to sell directly to the retailers or consumers. Legal RestrictionsIf there is any legal restriction on any selling activity, the producer will be restricted to do so. For example under MRTP, Act, any practice which may have the effect of unreasonably preventing or lessening competition in the supply of goods or services is not permissible. So, also is resale price maintenance. In case controlled items the channels should be strictly according to the government policy. (ii)

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CHAPTER 4. MARKETING RESEARCH & METHODOLOGY 4.1 4.2 MARKETING RESEARCH DATA SOURCE

4.3 RESEARCH APPROACH 4.4 RESEARCH INSTRUMENT 4.5 COLLECTION & ANALYSIS OF INFORMATION

61

RESEARCH METHODOLOGY
SOURCE OF DATA : - Having decided about the objectives and scope of the enquiry, the next problem is to decide about the sources from which the information (data) can be obtained or collected. 1 used both primary & secondary source to collect information. Primary data : - The data that are originally collected by an investigator or agency for the first time for any statistical investigation and used by them in the statistical analysis are termed as primary data. Secondary data : - The data (published or unpublished) which have already been collected and processed by some agency or person and taken over from there and used by any other agency for their statistical work are termed as secondary data.

62

Methods of collecting primary data I used both Questionnaire and schedules technique to collect primary data.

Questionnaire : - It is set of questions which are answered by the respondent himself in his own handwriting.

Schedule: - It is the device of obtaining answered to the questions in a from which is filled by the interviewers or enumerators in a face-to-face situation with the respondents. Secondary data was collected from broachers & company internal records.

63

MARKETING RESEARCH
The American marketing association defines marketing as the process of Planning and executing the conception/pricing promotion and distribution Of ideas, goods and services to create exchanges that satisfies individuals & organizational objectives. It is formalized means of obtain information to be used in making marketing decisions. Marketing Research is the systematic & objective identification, collection, analysis, dissemination & use of information for the purpose of assisting Management in decision making related to the identification & Solution of problems (& opportunities) in marketing.

TYPES OF MARKETING RESEARCH xploratory Research E Descriptive Research Experimental Research

Exploratory Research : - Exploratory Research is concerned with discovering the General nature of the problem & variables that relate to it.

64

The purposes of Exploratory Research are:-

To understand the problem being faced by the mgt. To identify the underlying variables which might have produced the problem? To develop hypothesis and hence tentative solutions. To gain insight and new ideas.

The methods of exploratory research: Analysis of secondary data. Survey of experts in the industry. Case studies.

The structure of exploratory Research is: It is relatively unstructured, It has to be flexible to a great extent. Sample is relatively small. Generally no questionnaire.

Descriptive Research : - It is focused on the accurate description of variables in the Problem model.

65

The purposes of descriptive research are: To descriptive marketing variables. To estimate the percentage of units in a given population showing a particular behavior. To make predictions. To study perception of object.

The methods of descriptive research are: Cross sectional study. Cohort analysis. Longitudinal study.

Experimental research:An experimental involves manipulation of one or more variables and measuring the effect of manipulation on some other variables. Variables which are manipulated are independent variables and the variables on which effects of manipulation are measured are dependent variables.

66

RESEARCH INFORMATION ANALYSIS CONSUMERS

REPORT

67

68 QUALITY OF THE PRODUCT

Responses
Quality (%)

1 1.4

2 2.14

3 3.57

4 14.2

5 78.57

QUALITY OF THE PRODUCT

1% 2% 4%

14%

1 79% 2 3 4 5

Poor Satisfectory Good Very Good Excellent

Quality

Marks Obtained 13130

Index 9378

Total Response 140

69

QUALITY CONSISTENCY
1 2.14 2 1.42 3 7.14 4 17.85 5 71.42

Responses
Quality Consistency (%)

QUALITY CONSISTENCY

2% 1%

7% 18%

72%

1 Poor 2 Satisfectory 3 Good 4 Very Good 5 Excelent

Consistency

Marks Obtained 1280

Index 91.57

Total Response 140

70

SHELF LIFE & RELIABILITY

Responses
Self Life (%)

1 1.42

2 5.71

3 3.57

4 7.14

5 82.14

Shelf Life & Reliability

1%

6%

4%

7%

1 Poor 82% 2 Satisfector 3 Goo Very 4 d Good 5 Excellent

Self Life

Marks Obtained 13080

Index 93.42

Total Response 140

71

FLEXIBILITY & RESPONSIVENESS OF THE ORGANISATION

Responses
Flexibility (%)

1 5.71

2 8.57

3 14.28

4 7.14

5 64.28

FLEXIBILITY & RESPONSIVENESS OF THE ORGANISATION

6%

9% 14%

Poor Satisfectory Good Very Good Excellent

64%

7%

Flexibility

Marks Obtained 11920

Index 85.14

Total Response 140

72

TRAINING & AWARENESS ACTIVITIES

Responses
Training & Awareness (%)

1 1.42

2 2.14

3 57.14

4 17.85

5 21.42

TRAINING & AWARENESS ACTIVITIES

21%

1% 2% Poor Satisfectory Good Very Good Excellent

18%

58%

Training & Awareness

Marks Obtained 10030

Index 71.64

Total Response 140

73

COMMUNICATION FACILITIES & METHODOLOGY

Responses
Communication Facilities (%)

1 0.71

2 1.42

3 10.71

4 21.42

5 65.71

COMMUNICATION FACILITIES & METHODOLOGY


1% 1% 11% Poor 21% Satisfectory Good Very Good 66% Excellent

Communication Facilities

Marks Obtained 12640

Index 90.28

Total Response 140

74

PROMOTIONAL ACTIVITIES OF THE ORGANIZATION

Responses
Promotional Activities (%)

1 0.71

2 0.71

3 7.14

4 28.57

5 62.85

PROMOTIONAL ACTIVITIES OF THE ORGANIZATION


1% 1% 7% Poor 29% Satisfectory Good 62% Very Good Excellent

Promotion Activities

Marks Obtained 12690

Index 90.64

Total Response 140

SALES SUPPORT FACILITIES PROVIDED BY THE ORGANIZATION

75

Responses
Sales Support (%)

1 2.14

2 1.42

3 3.57

4 14.28

5 78.57

SALES SUPPORT FACILITIES PROVIDED BY THE ORGANIZATION


2% 1% 4% 14% Poor Satisfectory Good Very Good 79% Excellent

Sales Support

Marks Obtained 13140

Index 93.71

Total Response 140

76

TECHNICAL SUPPORT FACILITIES PROVIDED BY THE ORGANIZATION

Responses
Technical Support (%)

1 1.42

2 2.85

3 2.85

4 7.14

5 85.71

TECHNICAL SUPPORT FACILITIES PROVIDED BY THE ORGANIZATION

1% 3% 3%

7%

Poor Satisfectory Good Very Good Excellent

86%

Technical Support

Marks Obtained 13320

Index 95.14

Total Response 140

77

VALUE FOR MONEY WHEN CONSUMER BUY & CONSUME THE PRODUCTS

Responses
Value For Money (%)

1 2.14

2 2.14

3 2.85

4 28.57

5 64.28

VALUE FOR MONEY WHEN CONSUMER BUY & CONSUME THE PRODUCTS

2% 2% 3% 29%

Poor Satisfectory Good Very Good Excellent

64%

Value For Money

Marks Obtained 12710

Index 90.78

Total Response 140

78

ENVIRONMENTAL CONCERN OF THE ORGANAIZATION

Responses
Environmental Concern (%)

1 0.71

2 2.14

3 4.28

4 67.85

5 25

ENVIRONMENTAL CONCERN OF THE ORGANAIZATION


1% 2% 25% 4% Poor Satisfectory Good Very Good 68% Excellent

Environmental Concern

Marks Obtained 11590

Index 82.78

Total Response 140

79

SOCIAL CONCERN OF THE ORGANIZATION


Responses
Social Concern (%) 1 1.42 2 2.14 3 3.57 4 35.71 5 57.14

SOCIAL CONCERN OF THE ORGANIZATION

1% 2% 4% Poor Satisfectory 57% 36% Good Very Good Excellent

Social Concern

Marks Obtained 12530

Index 89.5

Total Response 140

INDEX TABLE

80 PARAMETER Quality Quality Consistency Shelf Life & Reliability Flexibility & Responsiveness Training & Awareness Communication Facilities Promotional Activities Sales Support Facilities Technical Support Facilities Value For Money Environmental Concern Social Concern INDEX 93.78 91.57 93.42 85.14 71.64 90.28 90.64 93.71 95.14 90.78 82.78 89.5

INDEX TABLE
89.5
C H S EN N PR AL TR LI VI M SE ES I C A Q TY M R O AI L U LF O M U SU N AL & SU N VA I N NI C O T LI M R PP IT PP LU G FE EN SO ES IO AT Y O C & O N E PO C T & R AW ION AL RT O F O AL I AL R T N N E C FA SI A R C SI F A AC F A Q O O C VE RE ST L I A M TI U C N C N IL BI O AL IL N C IL VI N C EN N LI ES ES IT T I I T IE IT IT EY ER ER C TY IE IE ES S Y N S S N Y S S

82.78 90.78 95.14 93.71 90.64 90.28 71.64 85.14 93.42 91.57 93.78 0 20 40 60 80 100

TE FL

EX

IB I

81

Analysis & Interpretation of the study


[Retailers]
Product lines dealt by retailers-

PRODUCT MILK PEDA LASSI DAHI OTHERS

PERCENTAGE 100% 30% 60% 20% 15%


[Sample Size = 140]
15% 20% 100% 60% MILK PEDA LASSI DAHI OTHERS 30%

82

Average sell of different milk/milk products-

PRODUCTS MILK LASSI ICE CREAM PANEER DAHI OTHERS

PERCENTAGE 60% 20% 2% 3% 10% 5% [Sample Size = 140]


10% 3% 2% 20% 60%

5%

MILK LASSI ICE CREAM PANEER DAHI OTHERS

Does the organization fail to fulfill the demand of productYES NO 90% 10% [Sample Size = 140]

10%

YES NO

90%

83 Do you recommend setting up a call centre/customer help line for improving the customer services

YES NO NOT AWARE

75% 10% 15% [Sample Size = 140]

15% 10% YES NO NOT AWAR 75%

Retailers influence on purchasing behavior of consumer YES 70% NO 30% [Sample Size = 140]

30% YES NO 70%

84

Do you recommend to try new products of SUDHA to consumers-

YES NO

70% 30% [Sample Size = 140]

30% YES NO 70%

Average time taken to deliver the product-

TLME 1 DAY 2 DAY 3 DAY

PERCENTAGE 75% 20% 5% [Sample Size = 140]

5% 20% 1 DAY 2 DAY 3 DAY 75%

85

Satisfaction level regarding compensation policy against damaged productSATISFIED DISSATISFIED 15% 85% [Sample Size = 140]

15%

SATISFIED DISSATISFIED

time

85%

Organization inventory storage for product before selling to the consumer-

1 DAY 2 DAY 3 DAY

70% 18% 12% ] [Sample Size = 140

12% 18% 1 DAY 2 DAY 3 TO 4 DAY 70%

86 Satisfaction level regarding the transportation medium used by organization to deliver the product-

VERY GOOD GOOD FAIR

25% 60% 15% [Sample Size = 140]

15%

25% VERY GOOD GOOD FAIR

60%

Quality standard is maintained by the company regularly YES 65% NO 35% [Sample Size = 140]

70% 60% 50% 40% 30% 20% 10% 0%

65% 35%

Series1

YES

NO

87

CHAPTER 5. ASSUMPTION OF MARKET


5.1 ANALYSIS & STATEMENT OF CONSUMER RESPONSES 5.2 CONSUMER REACTION 5.3 REPRESENTATIVE OF SUDHA DAIRY 5.4 ANALYSIS OF BRAND MILK 5.5 ANALYSIS STRENGTH WEAKNESSES

88

ANALYSIS SURVEY

&

ASSUMPTION

OF

THE

MARKET

Information pertaining to milk marketing and sales of dairy products were collected the study covered two categories of respondents. a) Customer b) Representatives of Sudha dairy For the first to categories of respondents two types of questionnaires were used as research instruments. The questionnaires included both open and closed ended questions and addressed issues related toa) Availability of products b) Consumer preferences vis-a-vis attributes of products c) Label of brand loyalty d) Strength, weakness, opportunities and threats of products consumers consume and retailers endorse. The representative of Sudha Dairy were administered with in-depth discussion guidelines. The study covers 100 customers. The sample allocated for retailers were proportionally distributed allocated for retailers were proportionally distributed amongst the retailers for Sudha and Raj with the premise that Raj is the major competitor for Sudha in the packaged milk market. The customer questionnaires were administered to selected respondents representing different stratum of in various areas of Patna among different class of people.

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The customer base of the city were divided into seven categories based on usages pattern vis-a-vis socio-economic classification of house holds, The categories defined for the study were 1. Officers /Professionals (10000-25000) 2. Clerical Grade employees (8000-15000) 3. Businessmen (30000-50000) 4. Housewives 5. Students / undergraduates Each of the customer category identified above exhibit different characteristics. The following text summarizes the profile of the customer category identified. Officers / Professionals : They represent educated class, aware about the properties of pasteurized milk vis-a-vis other milk. The study indicates that respondent belonging to this category are aware and conscious about processing and treatment of milk i.e. supplied to them. These respondents were also aware about the variants(tone, double toned etc) of milk available in the market. Most of them were aware of toned and double toned milk packaged. They also form one of the major customer group consuming packaged milk. Clerical Grade Employees : They represent educated class can are very sensitive to price implications. They also form one of the major customer group consuming packaged milk.

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Businessmen are the basic purchaser of milk and other dairy product because usually they reside in combined family. They purchase a huge quantity of milk but along with pasteurized milk. They also purchase loose milk from local Gwalaas due to faith among them. They consider Sudha Gold as the best quality of milk due to its high price and greater fat contents. Housewives : Majority of them arc comparatively less educated and notice the very faults while purchasing the product. They put very much stress on the fat contents of the milk and are very much concerned with price of the product. Students / Undergraduates : Most of them living in hostel of lodge are either single or in pair are the customer of Sudha Gold i.e. F.C.M. as they purchase in very less quantity and are more concerned of the quality of the product rather high price. They do not prefer purchasing loose milk due to Inconvenience.

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PACKAGING
The study also tried to analyze the perception of people on the packaging of Sudha milk. It is indicated that approximately 5.40% of the respondents agree that the packaging is good while 25.55% trustworthy. 17% need to change & 2.05% people dissatiafied because of the usual appeal of the pack but because some stray cases when the packs were sound to be damaged.

PACKAGING

P A C K A G IN G
GOOD 17% 2% 55% TR U S TW O R TH Y N E E D TO CHA NGE D IS S A TIS F IE D

2 6%

HERE, Shows Shows Shows Shows the the the the Packaging Packaging Packaging Packaging of of of of GOOD TRUSTWORTHY NEED TO PACKAGE DISSATISFIED

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The following chart tries to explain the level of penetration of different brand variants of Sudha.

BRANDS OF MILK

B R AN D S OF MIL K

14% 43% 28% 15%

S HA K TI G O LD HE A LTHY S M A RT

HERE, Shows the Demand of SUDHA SHAKTI Shows the Demand of SUDHA HEALTHY Shows the Demand of SUDHA GOLD Shows the Demand of SUDHA SMART

It can be seen that the demand for Sudha Shakti is very high. The demand for Sudha Healthy has also been found to be relatively high. But the demand of toned and double toned i.e.; Sudha Gold and Sudha Smart is comparatively very low and need to be promoted.

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SWOT ANALYSIS is very important method to summarize previous analysis and combine them with the key issue to which current strategy of an organization and its more specific strengths and weaknesses are relevant to and capable of dealing with changes taking place in the business environment. It can also be used to assess whether there are opportunities to exploit further the unique resources or core competences of the organization. SWOT stands for Strength, Weakness, opportunity, & Threats. But rather than listing there are the terms of managers perceptions. The idea is to undertake a more structured analysis So as to yield findings which can contribute to the formulation of strengths. SWOT Analysis is the most important factor of an organization after through assessment of SWOT analysis the organization adopts new strategy and policy for the company in future. I have formed the SWOT analysis by findings the data collection of this research which are mentioned below,

STRENGTHS :
It is the most popular Dairy Brand in Patna The quality of the product is Very Good Patna Dairy Project gained the customers faith. They consider their product Trustworthy. A large number of product variables are available at the retail outlet i.e. besides 4 different quality of Milk, Ghee, Dahi, Paneer, as well as numberous varieties of sweets and Ice-Creams are also available. The market is favourable throughout the year The product is affordable throughout the day and can be obtained in bulk.

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WEAKNESS :
A little carelessness leads to damage of products. Pasteurized milk has different tastes and smell which dislike By many children.

As it is not milked in front of customer, they are not sure about its purity. Absence of attraction for the customers. Low per capita consumption of the milk,

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PROCESSING OF FINISHED GOODS OF P.D.P RAW MILK RECEOTION FROM M.P.C.S. [ MILK PRODUCERS CO-OPERATIVE SOCIETIES ] MILK GRADING, WEIGHING & SAMPLING RAW MILK CHILLING

PASTEURIZATION / HOMOGENATION

SEPERATION

CREAM PASTEURIZATION STANDARDISATION BUTTER MILK PACKING L SALTY 1L STORAGE BUTTER TABLE DESPATCH 120) GHEE AT (110DEG C. 2000 ML COOKING BUTTER

MARKET

COOLING

RETAILER PACKAGING CONSUMER

200 ml 500ml 1000ml

500ml

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jar jar jar jar

CONCLUSION
Sudha is the one name that is associated with name of Bihar and as pride of Bihar. It is true that it has acquired major market in Patna. All area of Bihar is widely covered by Sudha. The range of product offered by Sudha is also very large, which has built a trust in he mind of consumer. The consumers were very satisfied with the product offered by the brand.

Today the consumers are smart enough to judge their needs and wants. Especially for the eatables they go for the hygienic property and various other actors same holds for the case of Sudha.

People choose Sudha because easy availability and Pasteurization packing etc. One of the most competitors of Sudha is Raj milk in Patna because of easy availability at local shops. After Sudha 34% person wants to go for Raj. Sudha is basically a local brand, which is not covering the other parts of the Nation. So, some time they go for a national brand like Amul which is its greatest competitors after Raj. About 30% are opting for Amul after Sudha that is followed by Mother Dairy and Milk man.

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The price strategy of Sudha is also very good. They have a well structure price strategy which is good enough to penetrate in the Market like Bihar. Because Bihar is basically not a very rich state. But Sudha is offering price. This is affordable and due to this it is very famous in middle salary class. About 82% believes that it is average price. In the survey I found that the people of salary class between rupees 10,000 to 20,000 are the major purchaser of Sudha that about 52% of the total. People also expect certain innovation on taste and quality Improvisation that could make the range of Sudha products more interesting. It is really a good sign for Sudha because people are expecting more and more from it. Also a food Advertising strategy for Sudha is also very important which Can make to a more powerful brand it will sure raise some more on the present market.

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VAISHAL PATLIPUTRA DURGA UTPADAK SAHKARI SANGH LIMITED. PATNA DAIRY, FBD COMPLEX, PATNA EVALUATION WORK SHEET - CUSTOMER SATISFACTION ASSESSMENT We would like to know how well we arc succeeding in meeting your needs and expectation. Following is the questionnaire about what you wanted from us. Answers will be treated with complete confidentiality. Please answer these questions using the scale (Please tick or encircle the choice)
Sr. No. 01 02 Shelf life & Reliability ? 03 Flexibility & Responsiveness 04 05 06 07 08 09 10 of our organization ? Training & Awareness activities ? Communication facilities & methodology ? Promotional activities of our organization? Sales support facilities provided by us ? Technical support facilities provided by us? How is the value for money when you buy and consume our products ? Our environmental concern ? Social concern of our organization ? OTHER INFORMATION :Milk Quantity purchase daily .......................... (b) Brand of milk purchased ................................. How milk is utilized ? ...................................... (d) Through whom you purchase? ........................ Reason for preference of brand ? .................. Valuable suggestions for improvement in Sudha Brand :Questions aspect/area Quality of our products ? Quality consistency of our products Poor Questions aspect/area Satisfactory Good Very Good

11 12 13. (a) (c) (e) 14.

........................................................................................................................................................................................... ........................................................................................................................................................................................... ...........................................................................................................................................

Customer Name Address :Profession :Phone Numbers :Date :-

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Questionnaire
On supply chain Management (SCM) for SUDHA Brand products Name of the Retailer : . Address/contact number:.. .. Tel.Shop:___________________ Mobile no:_______________________ Educational qualification: Matric Graduation Others Experience in milk business supply chain points New 2 Years 6+ Years 10+ Years Intermedediate PG

1. Name the total product line of SUDHA you deal in. _______________ ___________________ _____________________ _______________ ___________________ _____________________ _______________ ___________________ _____________________ 2. How much milk product is sold from your outlet in(percentage) Milk Ice Cream Curd Lassi Paneer Other Products(Please specify)

3.Does the organization fail to fulfill the demand of the product? Yes If Yes, how? No

101 4.Do you think the company can meet the demand of the product through call Centre methodology (Like toll free number)? Yes If Yes, how? No

5. Does you think a retailer has influence on the customer purchase decision? Yes How? No

6. Do you suggest customer to purchase the new product launched by SUDHA recently ? Yes How & why ___ give reason: No

7. How much time does company usually take in delivering the product? ______________________________________________________________ __ ______________________________________________________________ __ ______________________________________________________________ __ 8. Are you satisfied with the existing compensation policy of the damaged product? Yes Give reason? No

9. For how many days you keep the inventory of the different product?

102 ______________________________________________________________ _ ______________________________________________________________ _ ______________________________________________________________ _ 10. Rate the existing transportation medium adopted by the organization. 1.Exellent 3.Good 5.Poor 11. what should be the different transportation medium according to you? _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ 12. Does the organization maintain its quality stands regularly? Yes How _____________ No When? ______________ PG 2.Very good 4.Satisfactory

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BIBLIOGRAPHY
MARKETING MANAGEMENT MARKETING RESEARCH BUSINESS STATISTICS MAGAGINES Dr. Philip Kotler Pradeep Gupta & Gupta Business & Economy Business Today

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