A Final Report on Executive Training at Saras Dairy, Alwar

INSIST ON SARAS MILK JUST !!!!! BECAUSE ONLY SARAS MILK GIVES YOU TRUE VALUE FOR YOUR MONEY. IT IS PURE, FRESH, NUTRITIOUS, HYGIENIC AND CREAMY.

3/22/2012

Final Report

A REPORT ON A STUDY OF PERFORMANCE AND GROWTH OF SARAS DAIRY

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

SUBMITTED TO: MR. SANDEEP KUMAR KAUTISH (FACULTY GUIDE) MR. AMIT BHATTACHARYA (COMPANY GUIDE) BY SMITA CHOUDHARY 6ND11765

3/22/2012

Final Report

Acknowledgement
I express my heartfelt thanks to Mr. J.R. Dhaka, Managing Director, AZDUSS Ltd. for his direction, help and motivation. I express my sincere thanks to Mr. Sandeep Kumar Kautish (Faculty Guide), Mr. Amit Bhattacharya (Company Guide, Plant Manager, Marketing, Saras Dairy, Alwar [AZDUSS Ltd., Alwar]), Mr. L.C. Balai (Deputy Manager, Marketing) and Mr. Anil Kumar Mathur (Deputy Manager, Administration) for their support and cooperation. They provided me their valuable help and guidance during the training period. I shall be highly indebted to the staff of the marketing department of Saras Dairy (AZDUSS Ltd., Alwar) for the moral support they extended to me during the SIP training. I also thank the booth/parlour owners and the respondents whom I surveyed for giving me their valuable time and fruitful suggestions.
3/22/2012 Final Report 3

Declaration
I hereby declare that this project work entitled A study of performance and growth of Saras Dairy, Alwar is my work, carried out under the guidance of my Faculty Guide Mr. Sandeep Kumar Kautish and my Company Guide Mr. Amit Bhattacharya. This report neither full nor in part has ever been submitted for award of any other degree. Smita Choudhary 6ND11765 ICFAI National College Alwar
3/22/2012 Final Report 4

Preface
Marketing is one of the most important functions in business. It is the discipline required to understand customers' needs and the benefits they seek. No study can be termed complete if there is no practical experience. Hence need for training has become a real necessity. The training aims to prepare students through a process of practical experience. Practical exposure no doubt has contributed a significant amount of knowledge to me along with real life experience and was an ideal combination of academic knowledge and practical experience. Marketing activities can be regarded as lifeblood of all business concerns. In order to enhance the performance of marketing department and overall success of a business concern, study of consumer behavior and their satisfaction, sales and distribution channels, advertisement and competitive advantages is necessary. The performance of a company is very much important for an organization. Saras Dairy, Alwar is in fact a very ideal location to gain practical experience. I am sure the experience gained in short duration, will go a long way in all my future endeavors.

3/22/2012

Final Report

Company Profile
Alwar Dairy is a dairy registered under Rajasthan Cooperative Act and is owned by thousands of its milk producers members. It works on world famous Amul pattern. As all other cooperative dairies, Alwar Dairy is a part of three tier structure i.e. Dairy cooperative society at village level which form district level milk producer unions which are further federated in state level federation. All three entities are autonomous and linked to each other by provisions of their bye laws. Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar (AZDUSS Ltd., Alwar) is a cooperative organization registered under Cooperative Act with Registrar of Cooperative, Government of Rajasthan. It was established in the year 1972 to implement dairy development activities in the Alwar district, under Operation Flood Program.

3/22/2012

Final Report

Information about the Company

Chairman Managing Director Establishment year in Alwar Mr. Ram Phal Gurjar Mr. J.R. Dhaka 1972

Type of organization Structure

Employees Certifications No. of registered Cooperative Societies Products New product Address Telephone Fax E-Mail Turn Over (2006-07)

Cooperative society registered under the Rajathan Cooperative Act Three tier structure (village level, district level, state level)
Permanent employees 197 Contract labor 150 ISO 9001-2000 IS 15000 (HACCP Food Safety Management System) 795 Full cream milk, toned milk, double toned milk, skim milk, dahi, paneer, ghee, chhach, lassi, shrikhand Ice-cream and softy to be launched soon Jaipur Road, Alwar 301001 [Rajasthan] (0144)-2702644(Customer care), 2701010, 2333926 (0144)-2342925 rcdfalw1_jp1@sancharnet.in 99.15 Crore

3/22/2012

Final Report

From the Managing Directors Desk

Future Plans and Strategies

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

3/22/2012

Final Report

Interview of the Managing Director

Question 1: Do you inspect the plant regularly? Answer: Yes, I inspect the plant daily. Question 2: What do you observe while inspecting the plant and the office? Answer: House keeping, hygienic condition, people are at work place. Question 3: What is the cooperation level of your employees? Answer: Cooperative Question 4: What are your future plans and strategies? Answer: Strengthening milk procurement and milk marketing. Question 5: What are the promotional activities you conduct to promote your products? Answer: Mouth publicity, awareness programmes. Question 6: Do you organize events or seminars for your customers to make them aware about your products? Answer: Yes Question 7: Do you conduct staff meeting for smooth working and better coordination? Answer: Yes. Question 8: Does any conflict arise between your staff members? If yes, what do you do to resolve the conflict? Answer: Conducting joint meeting. Question 9: Do you provide training to your staff? Answer: Yes Question 10: What measures do you take to ensure smooth functioning of the organization? Answer: Discipline, timely payment and personal benefits of staff. Question 11: Who is responsible for setting prices of Saras products? Answer: R.C.D.F., state body and milk union.

3/22/2012

Final Report

Organization Chart of Saras

3/22/2012

Final Report

10

Products of Saras Dairy, Alwar

(Types of milk)

Product Full cream milk Toned milk Double toned milk Skim milk

Name Gold Taaza Smart

Packing Color Red Blue Yellow

Price Rs.23/litre Rs.19/litre Rs.17/litre

FAT content 6.0% 3.0% 1.5%

SNF content 9.0% 8.5% 9.0%

Packing and 1 litre and 1 litre and 1 litre

Lite

Purple

Rs.15/litre

0.5%

8.5%

and 1 litre

Types of Fresh milk Products

Product Chhach plain Chhach namkeen Lassi Paneer Ghee Dahi Shrikhand plain Packing 500 ml 250 ml 250 ml 200 gm and 1 kg litre and 1 litre 200 gm cup 100 gm cup Price Rs.7 Rs.6 Rs.7 Rs.25 and Rs.120 Rs.85 and Rs.170 Rs.8 Rs.8

Shrikhand Kesar Pista

100 gm cup

Rs.9

3/22/2012

Final Report

11

Objectives

To identify the working of the organization. To conduct an exhaustive analysis of the marketing department. To increase the sales of the products that are prepared and marketed by the organization. To conduct an extensive study of the market place and the customers needs. To understand the core business of the company, organization chart, key personnel in the company, manufacturing units, marketing channels, financial policies, etc.

To do a comprehensive analysis of the company and prepare the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis report for the company. To build a good rapport with the companys staff. To understand the organizational structure and the top management team including the Chairman, Managing Director and the Officers. To do a practical and live observation of the work place. To understand the attitudes and behavior of the customers.
12

3/22/2012

Final Report

Tasks
To conduct a comparative study of the growth of Saras (AZDUSS Ltd., Alwar) for three consecutive years. To conduct survey of Saras parlours and booths to know their problems and sort them out. To get feedback from Saras parlours and booths. To get feedback from customers and find their problems, satisfaction level, take their suggestions and help AZDUSS Ltd., Alwar to implement those suggestions. To take responses from people who do not use Saras products and find the answer to the question, Why they are not using Saras products. To judge the satisfaction level of the employees of AZDUSS Ltd., Alwar. To do entries of daily supply in the supply register. To take demand of various Saras products from parlour/booth owners and distributors through phone or personal contact in the prescribed proforma. I was given the responsibility to guide 36 MBA students (working as interns in Saras Dairy, Alwar) and assign them their tasks and duties on a weekly basis.
Final Report 13

3/22/2012

Targets
TARGETS

Survey 500 people

Plant visit for 250 people

Survey 9 parlours and 210 booths

Increase sale

Take demand

Participate in milk testing camps

Interview staff of the marketing department

3/22/2012

Final Report

14

How I have benefited the Organization

Surveyed booths and parlours Got to know their problems

Conveyed these problems to the MD

Took immediate action on my feedback

Helped the MD find ways to keep his staff satisfied and loyal

Provided timely supply of material and cover stand and straws

Got to know their satisfaction level

Customers got better facilities

Interviewed the staff of marketing department

Enhanced the goodwill of the organization

3/22/2012

Final Report

15

Strategy
A marketing strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Questionnaire Design A questionnaire is a set of questions to be asked from respondents in an interview, with appropriate instructions indicating which questions are to be asked, and in what order. Questionnaires are used in various fields of research like survey research and experimental design. The questionnaire that I designed consists of two types of questions: Open Ended Questions Close Ended Questions
3/22/2012 Final Report 16

Analysis of Performance vs. Target

S.No. 1. Factor Plant visits Target 250 Performance 250 Variance Nil Reason -

2.
3. 4. 5. 6.

Door to door surveys

Booth surveys Parlour surveys Training to M.B.A. students Participation in free milk testing camp

500
210 9 36 6 days camp

500
205 9 36 Full attendance

Nil
5 Nil Nil Nil

Due to lack of time -

3/22/2012

Final Report

17

Problems/Constraints/Limitations
The data collected is totally dependent on respondents views, which could be bias in nature. Sometimes respondents do not give a response or give partial response. It is called non response error. The reason may be lack of knowledge or unwillingness to answer. The sample size is small and it may not actually represent the whole population. During the survey I came across unfavorable weather conditions like scorching heat and dust storm. There is limited time available each day and lot of tasks have to completed in a day like preparing reports, conducting surveys, spend time at the office to gain knowledge, etc. The study was conducted in the urban areas and it cannot be applied to the rural areas because the tastes and preferences of people of rural and urban areas differ vastly. The answers given by the respondents are not always correct and may be misleading. It is very time consuming to go door to door in order to conduct a survey of various homes and find their views and study their buying behavior. Sometimes it becomes very difficult to convince people as many of them are not at all aware of Saras products and some are very stubborn. It becomes slightly difficult to convince such people but it is a challenging task and a good learning experience. In some cases the respondent is not present at home. It is not possible and economically viable to recall respondents not present at home. Sometimes the respondents are not educated. Personal interviews are successful only when the respondents are educated.
Final Report 18

3/22/2012

Limitations of Saras Dairy

Low availability of raw milk in summers. Dependence on milk producers. Dependence on monsoons. Milk can be produced not manufactured. Increasing competition in dairy industry.

3/22/2012

Final Report

19

Learning in the Executive Training

Bridge the gap between academic institution and corporate world. Importance of job responsibility. Increase milk procurement. Distribution network adopted by Saras. Milk processing Preparation of milk products like ghee, dahi, paneer, chhach, lassi, shrikhand. Marketing strategies adopted by Saras Dairy, Alwar Conduct door to door interviews. Test the milk sample for purity. Organize plant visit for visitors. Take demand of Saras products. Build a good rapport with the staff.

3/22/2012

Final Report

20

Table Showing Price Change

Product Price before 01st April 07 Rs.20 Rs.16 Rs.14 Rs.13 Rs.160 Rs.6 Rs.20 Rs.100 Rs.5 Rs.6 Rs.4 Rs.7 Rs.10 Price as on 07th April 07 and onwards Rs.21 per litre Rs.17 per litre Rs.15 per litre Rs.13 per litre Rs.165 Rs.7 Rs.22 Rs.110 Rs.6 Rs.7 Rs.5 Rs.7 Rs. 10 Price as on 01st May 07 and onwards Rs.22 per litre Rs.18 per litre Rs.16 per litre Rs.13 per litre Rs.170 Rs.8 Rs.25 Rs.120 Rs.7 Rs.7 Rs.6 Rs.8 Rs.10 Price as on 01st July 07 and onwards Rs.23 per litre Rs.19 per litre Rs.17 per litre Rs.15 per litre Rs.170 Rs.8 Rs.25 Rs.120 Rs.7 Rs.7 Rs.6 Rs.8 Rs.10 FCM (Gold) Toned Milk (Taaza) Double Toned Milk (Smart) Skimmed Milk (Lite) Ghee (1 litre) Dahi (200 g) Paneer (200 g) Paneer (1 Kg) Lassi (250 ml) Chhach (Plain) 500 ml Chhach (Namkeen) 250 ml Shrikhand Plain (100 g) Flavored Milk (200 ml)

3/22/2012

Final Report

21

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR REGISTERED DCS

900 800 700 600

NO.

500 400 300 200 100 0 Series1 Series2 497 532 609 681 742 795 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Series1 Series2

YEAR

3/22/2012

Final Report

22

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR MILK PROCUREMENT

90 80 70

QTY. 000,Kgs

60 50 40 30 20 10 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Series1 59.59 62.97 66.22 70.28 76.93 82.66

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

YEAR

3/22/2012

Final Report

23

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR LIQUID MILK SALE

140
000' LIT PER DAY

120 100 80 60 40 20 0 Series1 2002-03 2003-04 2004-05 2005-06 2006-07 18.6 29.56 35.81 YEAR 67.03 132.69 2002-03 2003-04 2004-05 2005-06 2006-07

3/22/2012

Final Report

24

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR TURN OVER

120 100 80

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

Crore

60 40 20 0 Series1

2001-02 53.6

2002-03 59.57

2003-04 93.77

2004-05 96.33

2005-06 95.8

2006-07 99.15

Year

3/22/2012

Final Report

25

SWOT Analysis of Saras Dairy

STRENGTHS The products are very pure The products are extremely hygienic The plant is ISO 9001- 2000 and HACCP certified WEAKNESSES Low availability of raw milk Dependence on farmers Reduced milk supply in summers

OPPORTUNITIES Milk is an essential commodity which every body uses. There is no competitor of packed milk in Alwar.

THREATS Milk can be produced not manufactured. There is always a possibility of a competitor entering the market. Competition in milk procurement

3/22/2012

Final Report

26

Conclusions
S.No. 1 2 Characteristic of Saras Dairy Variety of milk provided by Saras Dairy Prices are affordable 9 6 Number of Points

3
4 5 6 7 8 9 10 11 12 13 14

Round the clock availability

Quality and hygiene Enough range of FMP Staff is cooperative Follow the ISO 9001-2000 norms Give weightage to suggestions (Suggestions are always welcome) Customer awareness camps and plant visits Employee satisfaction Market reputation Advertisement and publicity New product development Channels of marketing Total

0
10 8 9 10 8 7 8 9 4 5 7 100

3/22/2012

Final Report

27

Reasons of those people who are not using Saras products

S.No. 1 2 3 4 5 6 7 8 9 10 11

Factor Absence of home delivery Unknown about Saras products Products are expensive Priority to buffalos milk Possess bad smell Non availability of booth in the vicinity Use Saras milk in case of emergency only Faith in long association with the milkman Not able to pay in cash Consumers own cows and buffalos No price consistency TOTAL

% of the people surveyed

23.6 10.2 8.4 10.8 5.8 6.6 5.8 9.2 8.2 4.8 6.6

100

3/22/2012

Final Report

28

Awards/Rewards Received

As Saras is a semi-government organization, therefore, it does not provide any stipend to the interns or trainees. During my SIP training I received a letter of appreciation from Saras Dairy, Alwar (AZDUSS Ltd., Alwar) for doing my summer training with utmost dedication and sincerity. During training I received many compliments from the Managing Director of the organization and the members of the marketing department. In the training period the management of Saras was very satisfied with my performance. I got appraisal letter for good performance two times during my training period, one at mid term and other after completion of training. Copy of appraisal letter is enclosed. The Managing Director of the organization and my company guide offered me to join Saras Dairy, Alwar after completion of MBA on contract basis, As Saras is a semi government Organization, therefore it cannot give pre-placement offer (PPO) in writing. My SIP company organized farewell party for me. At the time of farewell Managing Director of company appreciated the work done by me. He also said in his speech that you have created positive atmosphere.

3/22/2012

Final Report

29

Copy of Appreciation Letter

3/22/2012

Final Report

30