Feasibility study of supplying 100% pure bottle milk

Pakistan with current estimates is the 4th largest milk producing country in the world with 33 Billion liters of milk produced annually. Out of the total milk produced, 97% is in the informal sector (i.e. loose milk consumed in the villages and or sold in the cities through "Gawalas" in unhygienic conditions and without any quality standards). Dairy farming practices are very old and traditional and need overhauling. To formalize and improve the industry, a private sector led Pakistan Dairy Development Company has emerged with guarantee backup by government of Pakistan. This will improve and formalize the dairy sector.
The packaged milk category was originated in 1981 by Milk Pak, which pioneered tetra pack milk in Pakistan. First competitor was Haleeb, which introduced distinctively blue tetra packs to the market in 1986. Afterwards Engro foods launched Olpers in 2006. This was the third tetra packed milk brand in Pakistan.

There is a dearth of research and documentation regarding the dairy sector in Pakistan. No serious effort has been made to understand dynamics of this important sector. Burki et al (2005), Abedullah and Sabir (2005), Lohano & Soomro (2006) and Garcia et al (2003) are some of the notable studies that look at various aspects of dairy sector in Pakistan in systematic fashion. Burki et al (2005) provide a preliminary assessment of the state of Pakistans dairy, explore the sectors potential in making impact on the dairy economy, and recommend areas where more detailed research work is needed. They found that even though milk production systems prevailing in Pakistan are plagued by lower milk yields, they offer immense potential for growth in the short to long run. They are of opinion that attempts to enhance production of smallholder dairying not only are important for raising milk yield in the country; they could also become an effective tool of raising incomes of impoverished rural households

Lohano and Soomro (2006) using historical time series data employed Random Walk Model with drift trend-stationary autoregressive model forecasted the annual milk production to grow at 4.17% per annum. Their results indicate that the shocks to production in a year have permanent effect on the level of future production. Abedullah and Sabir (2005) look at the competitiveness and efficiency of milk production in the Central Punjab and find that small farmers hold about 38 percent of the total strength of milch animals. Small holders having less than or equal to 12.5 acres of land possess more than 73 percent of milch animals. The authors find that in general, social profits are higher than private profit. They also find that technical inefficiency of milk and livestock production is highest in the district of Jhang.They recommend extension department to play a central role to guide the farmers to solve livestock production related problems and they also recommend government to take steps to improve the marketing system.

A case study of milk production and marketing by small and medium scale contract farmers of Haleeb Foods Ltd., Pakistan By Dr. Tanvir Ali, Director, Advanced Studies, University of Agriculture, Faisalabad - Pakistan

To identify consumers perception about the proposed new Milk. To identify consumers acceptability of new Milk. To identify consumer preferences in purchasing and using a Milk. To identify the demand and supply of new proposed Milk.

A packed milk is an oligopolistic category, where there are few competitors Milk Pack, Olpers, Haleeb, Tarang, Dairy Omung producing the essentially same commodity. Entry and exit barriers: High capital requirement, economic of scale, patent and licensing requirement, location, raw material and distributors Target market is urban areas of all cities.

Research Approach: Descriptive research will be perform for this research Kind of information needed: Primary data: Structured questionnaire will be designed to collect information from the respondents. Nature of Questionnaire: Fixed response questions will be used. Fixed response questions include multiple choice and scale Secondary Data: Secondary information will be collected by reviewing web sites, journals, brochures, publications, newspapers and other relevant documents.

A qualitative and quantitative both research will be exercise and questionnaire requires careful selection of groups which represent a very large population segment in terms of their perception, attitude, belief, ideas, liking and disliking. For this study we categorized two types urban, rural. We will use random sampling. Sample of 300 respondent (owner of tea stalls, shopping mall, restaurants) would be taken from different locations. Type of respondent: Business to business: owners of tea stalls, shopping malls, suppliers, distributors. Business to consumers: students, housewife's door to door, male 25years from offices, survey from shopping malls etc.

To prove the any research problems and objective or achieve any goals it is necessary to do work on the filed, because due to this the decision can be easily taken. In current research in our field work we choose Gujranwala city to do our research . For this purpose we divide Gujranwala city into 6 different segments and assigned each segment to each group member. Our areas of research include the following segments.

No. Of Questionnaires 50 50 50 50

Area Rahwali Cantt Wapda Town Peoples Colony Satelite Town

50
50

Dc Road
Model Town

Mall intercept personal interview will be used for conducting survey. Advantage of mall intercept personal interview is that it is more efficient for respondent to come to the interviewer than for the interviewer to go to respondent. It has moderate cost. To know the customer perception, this proposed study will be conducted by constructed questionnaire with those persons who will be selected as sample for the study. All participants will be voluntary.

To identify the demand and supply of bottle milk in Gujranwala market and give feasibility report on bottle milk in local market with supportable profit. How we can meet the consumer need. What quality we should provide.

We would have an in depth discussion in each focus group to understand the need and wants of the customer. We conduct mainly three focus group First based on house Wife Second , with Males 25 Year & above Third, Students

For data analysis we use SPSS.

Mean, Median, Mode.

Cross Tabulation. Factor Analysis.

Correlation Analysis.
Regression analysis. Graphs.

Time limitation We will face traveling cost Shortfall of electricity Un availability of respondent Less availability of funds for research

These studies aid us in the following ways. Increase our knowledge Improve our expertise Improve our marketing skills Gain a practical experience Boost up confidence

For company: These studies help the company in the following ways. Competitive advantage Better position Market update information Company knows better customers perception about the product. Company can get the market current situation and they would able to analyze their position in the market. Provide high quality milk with fair price to attract customers

Sr No. 1

Description Meetings with corporate supervisor

Research Cost Rs.2000

2
3 4

Phone calls and messages

Transportation charges (meetings and questionnaires) Market survey

Rs.3000
Rs.3000 Rs.1500

5
6 7 8 9

Interview (transportation charges)

Printing charges Book binding charges Refreshment with supervisor Total expenses

Rs.2000
Rs.2000 Rs.1500 Rs.5000 Rs.20000

Project Time Line Sr No. 1 2 3 4 5 Description Prepare Focus Group Question conducting Focus Group Preparing Questionnaire Days 3 4 2 Date 11/06/12 15/06/12 17/06/12

Testing Questionnaire
Final Questionnaire Market survey Data entering in SPSS Conducting interview Analysis of Interview Analysis of Interview in SPSS Marketing plan

1
2 4 1 2 3 2 3

18/06/12
20/06/12 24/06/12 25/06/12 27/06/12 30/06/12 02/07/12 05/07/12

6
7 8 9

10
11

Sr No.

Description

Days

Date

15
16 17 18

Rechecking
Mock 1 Mock 2 Final Presentation

1
1 1 1

08/07/12
11/07/12 25/07/12 02/08/12