A STUDY ON MARKETING STRATEGY WITH

REFERENCE TO

BAMUL [NANDHINI]

SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS OF BACHELOR OF BUSINESS

MANAGEMENT DEGREE COURSE OF BANGALORE

UNIVERSITY

2015-2016

BY

KEERTHI.M.S

REG.NO. (13VFC24046)

UNDER THE GUIDANCE OF

SHILPA JOSHI R V

STUDENT DECLARATION

I hereby declare that this project entitled “A STUDY ON MARKETING

STRATEGY OF BAMUL” was prepared by me during the year “2015-

2016” and was submitted in partial fulfillment of the requirements for the

award of degree in Business Management of Bangalore University.

I also declare that this project report is original and genuine and has not been

submitted to any other University for the award of any degree, diploma or

other similar titles or purposes.

Date: Signature

Bangalore KEERTHI.M.S

(13VFC24046)

GUIDE CERTIFICATE

This is to certify that the project report entitled “ A STUDY ON

MARKETING STRATEGY OF BAMUL” submitted by

KEERTHI.M.S to Bangalore University for the award of Degree

in Business Management is an outcome of genuine research

work carried under my guidance and it has not been submitted

for the award of any other degree, diploma or prize.

Date: Signature

Bangalore SHILPA JOSHI R V

HOD CERTIFICATE

This is to certify that KEERTHI.M.S. is a bonafide student of Bachelors of

Business Management. The project work entitled “ A STUDY ON MARKETING

STRATEGY OF BAMUL” is a bonafide work carried out by KEERTHI.M.S in

partial fulfillment of the requirements for the award of degree in Business

Management of Bangalore University during the year 2015-2016. It is certified that

all correcting/ suggestions have been incorporated in the project report and a copy

is deposited in the department library. This project work has been approved as it

satisfies the academic requirements for the award of Bachelors’ of Business

Management Degree.

Date: Signature

Bangalore PRASANNA PRAKASH

PRINCIPAL CERTIFICATE

This is to certify that KEERTHI.M.S is a bonafide student of this college.

The project work entitled “A STUDY ON MARKETING STRATEGY OF

BAMUL” is a bonafide work carried out by KEERTHI.M.S in partial

fulfillment of the requirements for the award of degree in Business

Management of Bangalore University during the Year 2015-2016.

Date: Signature

Bangalore R.BODHISATVAN

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

Milk and milk products are a basic food in many societies where cattle and other

animals form an important part of the agricultural production system. If you review the

history of dairying in most the European and North American countries, one sees the

share of liquid milk and milk products in the dairy industry changing over of economic

and technological development in their societies.

In developing countries like India depending on the level of the dairy industry, products

range from a few indigenous dairy products and raw milk to pasteurized liquid milk and

milk products and a small proportion of other “LUXURY” products. Thus liquid milk is

still the most important base for developing the dairy industry in developing countries.

India has become the worlds No.1 milk producing country, so it is also rich in its milk

products with output in the year 2010-2011 (marketing year ending March 2011)

forecasted at 95 million tonnes. In the India context of poverty and malnutrition, milk has

a special role to play for its many nutritional advantages as well as providing

supplementary income to some 70 million farmers in over 500,000 remote villages.

After liberalization Indian market is open to wide competition in both consumer market

as well as industrial market. Industrial buying process is influenced by so many factors.

Before purchasing raw materials they conduct an intense discussion and buying process

passes through different stages and finally adopt suitable one.

Consumers consider many factors like quality service, price availability of materials etc.

while purchasing the raw materials.

The main objective of this study is to know the marketing strategy and retailers opinion

about nandini milk products.

The methodology of this study was collection of data through structured questionnaire

and personal interview with consumer in various areas of Bangalore city. The sample size

was 100 at simple random sampling method and 56 for retailers. Then evaluation of

collected data is been done.

It can be concluded that Nandini is one such a brand, which has entered the

daily life of the customers. It has the monopolistic market in some products and can be

utilized fully. BAMUL is one such organization where, it is striving hard for its customer

satisfaction. This project report at the end gives some suggestion, if adopted can lead to

much higher development in sales.

AKNOWLEDGEMENT

I am highly thankful to NEW HORIZON COLLEGE for giving me this

opportunity to undertake my project work in the

BAMUL(NANDHINI),BANGALORE

I am grateful to the MR.VIJAY SRINIVAS, for giving me permission to complete

the project in BAMUL(NANDHINI). I would express my sincere thanks to Ms.

Shilpa joshi.R.V for helping me a lot in gathering information for my project.

I also express my gratitude to my Parents and my friends who had been a constant

source of encouragement and provided me the necessary help during the period of

my project.

Last but not least, I express my sincere thanks to God Almighty for showering his

blessings upon me and also all those who helped me directly or indirectly

throughout my project work.

Place :

Date :

CONTENTS

LIST OF TABLES AND GRAPHS

Chapter 1 Introduction 1-11

1.1 Introduction to Marketing

Chapter 2 Industry profile 12-47

2.1 Bamul (nandini)

Chapter 3 Research Design 48-56

3.1 Title of the study

3.2 Statement of problem

3.3 Objectives of studies

3.4 Scope of study

3.5 Research Methodology

3.6 Limitation of study

3.7 Operational definition & concepts

3.8 Nature of study

Chapter 4 Data Analysis and Interpretation 57-77

Chapter 5 Summary of finding 78-80

Chapter 6 Suggestions & conclusions 81-83

Chapter 7 Appendices & Annexure 84-88

Chapter 8 Bibliography 89-90

SERIAL

NO.

LIST OF TABLES AND GRAPHS PAGE NO.

(TABLES)

1 AGE OF RESPONDENTS 58-58

2 OCCUPATION OF RESPONDENTS 59-59

3 HOW DID YOU COME TO KNOW ABOUT

THE NANDHINI MILK PRODUCT

60-60

4 WHY DO YOU PREFER NANDHINI MILK

PRODUCT

61-61

5 WHAT DO YOU PERCIEVE ABOUT THE

QUALITY OF NANDHINI MILK PRODUCT

62-62

6 WHAT DO YOU THINK ABOUT PRICINMG

POLICY OF NANDINI MILK PRODUCT

63-63

7 WHAT DO YOU FEEL ABOUT THE

PACKAGING OF NANDHINI MILK

PRODUCT

64-64

8 WHICH OTHER BRANDS DO YOU PREFER 65-65

9 WHAT DO YOU FEEL ABOUT THE TASTE

OF NANDHINI MILK PRODUCT

66-66

10 HOW DO YOU FIND THE PACKAGING OF

NANDINI MILK PRODUCT

67-67

11 HOW MUCH SATISFIED ARE YOU WITH

NANDINI MILK PRODUCT

68-68

12 SINCE HOW LONG ARE YOU DEALING

WITH NANDINI MILK PRODUCT

69-69

13 WHAT IS YOUR OPINION ON THE

MARGIN OF COMMISSION GIVEN TO

NANDINI MILK PRODUCTS

70-70

14 DO YOU FIND SEASONAL VARIATIONS IN

DEMAND FOR NANDINI MILK PRODUCTS

71-71

15 ARE THE PRODUCTS SUPPLIED

EFFICIENTLY THROUGHOUT THE YEAR

72-72

16 WHAT IS YOUR OPINION ON NANDHINI

MILK PRODUCT

73-73

17 ARE SUPPLIERS AS PER SCHEDULE 74-74

18 WHAT IS YOUR MODE OF PAYMENT 75-75

19 IF YOU GIVE BULK ORDERS WILL YOU

GET IMMEDIATE SUPPLY

76-76

20 DO YOU COME ACROSS ANY DAMAGED

GOODS

77-77

1

Marketing: marketing has been seen as the task of creating, promoting and delivering goods

and services to consumers and businesses. Marketing does not only refer to selling of services,

experiences, events, persons, places, properties, organizations, information and ideas.

Marketing refers to stimulating a demand for the company‟s product. In order to meet the

organizational goals. The role of marketing in any organization is an important as the role of

production or finance as the role of production or finance as without marketing the goods which

are produced, there will be no finance for further production.

Definations of marketing:

Many authors have attempted to define the term marketing, to state a few….

Marketing is a social and managerial process by which individuals and groups obtain what they

need and want through creating, offering, and exchanging products of value with others.

: Philip kotler

The American marketing association most recently defined Marketing as "the activity, set of

institutions, and processes for creating, communicating, delivering, and exchanging offerings that

have value for customers, clients, partners, and society at large."

: The American marketing association

Marketing is the process of planning and executing the conception, pricing, promotion, and

distribution of ideas, goods, services, organizations, and events to create and maintain

relationships that will satisfy individual and organizational objectives.

: Boone and Kurtz

2

Marketing is the message and/or action that causes messages and/or action.

:Jay Baer

Marketing is meeting the needs and wants of a consumer.

: Andrew Cohen

Marketing is creating irresistible experiences that connect with people personally and creates the

desire to share with others.

: Saul Colt.

Marketing is essentially involved in outward communication, in promoting the corporate goals

of the company it is serving. It is the process through which companies accelerate returns by

aligning all communication objectives (advertising, marketing, sales, etc), into one department to

more efficiently achieve the overall corporate goals.

: Antoine Didienne

Core concepts of marketing:

Core concepts of

marketing

Needs,

Wants and

Demands

Products

Value, Cost

And

Satisfaction

Markets,

Marketers,

Prospects

Relationship

And

Networks

Exchange

And

Transaction

3

1. Needs, Wants and Demand:

A Need is a state of deprivation of basic satisfaction, people require food, clothing, safety,

shelter, belonging and esteem. These needs are not created by society or by marketers but they

exists in the very texture of human biology and human condition.

Wants are desires for specific satisfiers of needs, human wants are continually shaped and

reshaped by social forces and institutions, including churches, schools, families and business

corporations.

Demands are wants for specific products that are backed up by the ability to buy them, wants

become demands when supported by purchasing power

2. Products:

A product is anything that can be offered to satisfy a need or a want, people satisfy their needs

or their wants with products.

A product or a service can consist of three components.

Goods

Services

Ideas

3. Value, Cost and Satisfaction:

Value is the consumer‟s estimates of the products overall capacity to satisfy his or her needs.

Cost depends mainly upon the consumer‟s economic position.

Satisfaction of the customer-requirements at the lowest possible cost of acquisition, ownership

and use.

4. Exchange and Transaction:

Marketing occurs when people decide to satisfy their needs and wants through the means of

exchange.

Exchanging is the act of obtaining a desire product from someone by offering something in

return.

A Transaction is a trade of values between two or more parties. There are two types of

transaction.

i. Monetary transactions

4

ii. Barter transactions

A transaction involves several dimensions, at least two things of value, agreed upon conditions, a

time of agreement and a place of agreement.

5. Relationships And Networks:

Relationship marketing is the practice of building long terms satisfying relations with key

parties such as customers, suppliers, distributors, in order to maintain long-term preference and

business.

A Marketing Network consists of the company and all of its supporting stake holders,

customers, employees, university scientists, and others with whom it has build mutually

profitable business relationship.

The operating principle now a days is simple; build a good network of relationship with key

shareholders and profits will follow.

6. Markets:

A Market consists of all the potential customers sharing a particular need or want who might be

willing and able to engage in exchange to satisfy the need of want.

7. Marketer and prospects:

Marketing means working with markets to actualize potential exchanges for the purpose of

satisfying human needs and wants.

A marketer is someone seeking one or more prospects that might enter engage in an exchange of

values.

A prospects is someone whom the marketer identifies as potentially willing and able to engage

in an exchange or values.

Introduction to marketing strategy:

Marketing Strategy is the „route‟ or „routes‟ that a business intends to take to get to its chosen

„destination‟, the Marketing Objective. Whilst Marketing Objectives can themselves be seen as

identified 'milestones' on a longer journey toward the overall Corporate goals/aims of the

business.

5

To better understand the nature and role of Marketing Objectives and Strategy, we should

consider their position within both the Marketing Planning and Corporate Planning process.

In order to develop appropriate marketing strategies a business must first understand „Where it

is‟ in terms of the business and its markets, before going onto decide „Where it wants to get to‟

in terms of Marketing Objectives and „How its going to get there‟ the Marketing Strategies to be

employed. This is achieved through completion of a Marketing Audit, which through market

research will provide.

Meaning:

„Marketing strategy is the marketing logic by which the business unit hopes to achieve its

marketing objectives‟.

Definition:

An organization‟s strategy that combines all of its marketing goal into one comprehensive plan.

A good marketing strategy should be drawn from marketing research and focus on the right

product mix in order to achieve the maximum profit potential and sustain the business. The

marketing strategy is the foundation of a marketing plan.

Elements of marketing strategy:

1. Segments

The first big decision is who should be our customers and who should not. In other words, what

customer segments will be addressed. This is based first on the overall strategic intent of the

firm, for example to be a high-end exclusive and low-volume provider, or to compete in mass

markets where price is critical. The decision is also based on research that indicates the

profitability of different customers groups and how well the company is able to compete in each

segment.

2. Brand

The brand is the overall intended message of the company, its products and services. It

describes what customers and others should think and feel whenever they encounter the

company or its products and services. Brand is influenced by and influences the strategic intent

of the firm and helps focus all other communications, products and interactions. Brand is fragile

6

in that it is what customers think and feel rather than what the company communicates. This

makes shaping decisions about brand critical.

3. Competition

An important marketing decision is the nature of competition, for example whether to compete

on quality, price, service, etc. Decisions here will be affected by brand and will shape further

activity such as the approach towards promotion, the use of advertising, the response to

competitive action, and so on.

4. Products

Having understood and selected customers, marketing strategy should have a significant

influence on the products created. This not only includes the overall functionality but also the

focus on quality, features, price points and so on, in order to produce products that align with

the brand and complete effectively in the marketplace.

5. Price

While the exact price may not decided in strategic planning, the price ranges should be

understood particularly in terms of what the target customers are willing and able to pay, and

also what price breaks are important to be able to compete in the markets being addressed.

6. Promotion

Promotional strategy includes decisions about what approaches to promotion will be used, for

example TV advertising, direct marketing and so on.

Promotion can be extremely expensive, so a key part of the strategic decision here is in the

amount of budget that is being allocated.

7. Communication

Related to brand and promotion, the way that communications with customers and other

stakeholders (such as the media) needs to be decided. This includes broadcast information about

products, one-to-one and things in between. It also includes how service conversations will be

conducted, for example using web interfaces or direct phone conversation.

8. Outsourcing

A big decision that can be applied within any of the above is the 'make or buy' choice of

whether to do things in-house, bring in external experts or pass on the work to third party

suppliers. Two key factors in the outsourcing decisions are first the ability of the company to do

the work in comparison with suppliers, and secondly the costs of doing this. The impact on

brand should be a key consideration also. Many companies who outsource such as service calls

have suffered huge brand damage from suppliers who do not deliver brand values.

7

Features of marketing strategy:

1. Defining your product or service: How is your product or service packaged?

What is it that your customers are really buying? You may be selling web-based software tools

but your clients are buying increased productivity, improved efficiency and cost savings. And if

you offer several products or services which ones are the most viable to promote?.

2. Identifying your target market: Everyone or anybody might be potential clients

for your product. However, you probably don‟t have the time or money to market to Everyone or

Anybody. Who is your ideal customer? Who does it make sense for you to spend your time and

money promoting your service to? You might define your ideal customer in terms of income,

age, geographic area, number of employees, revenues, industry, etc. For example a massage

therapist might decide her target market is women with household incomes of $75,000 or more

who live in the Uptown area.

3. Knowing your competition: Even if there are no direct competitors for your

service, there is always competition of some kind. Something besides your product is competing

for the potential client‟s money. What is it and why should the potential customer spend his or

her money with you instead? What is your competitive advantage or unique selling proposition?

4. Finding a niche: Is there a market segment that is not currently being served or is not

being served well? A niche strategy allows you to focus your marketing efforts and dominate

your market, even if you are a small player.

5. Developing awareness: It is difficult for a potential client to buy your product or

service if they don‟t even know or remember it exists. Generally a potential customer will have

to be exposed to your product 5 to 15 times before they are likely to think of your product when

the need arises. Needs often arise unexpectedly. You must stay in front of your clients

consistently if they are going to remember your product when that need arises.

6. Building credibility: Not only must clients be aware of your product or service, they

also must have a positive disposition toward it. Potential customers must trust that you will

deliver what you say you will. Often, especially with large or risky purchases, you need to give

them the opportunity to “sample”, “touch”, or “taste” the product in some way. For example, a

trainer might gain credibility and allow potential customers to “sample” their product by offering

free, hour long presentations on topics related to their area of specialty.

7. Being Consistent: Be consistent in every way and in everything you do. This includes

the look of your collateral materials, the message you deliver, the level of customer service, and

the quality of the product. Being consistent is more important than having the “best” product.

This in part is the reason for the success of chains. Whether you‟re going to Little Rock,

8

Arkansas or New York City, if you reserve a room at a Courtyard Marriott you know exactly

what you‟re going to get.

8. Maintaining Focus: Focus allows for more effective utilization of the scarce

resources of time and money. Your promotional budget will bring you greater return if you use

it to promote a single product to a narrowly defined target market and if you promote that same

product to that same target market over a continuous period of time.

Advantages of marketing strategy:

1. Saves time and money: Time and money are important primary factors of

success in the business industry. As you will see below, a marketing strategy helps

owners to define a brand so that they spend loads of productivity time marketing a

product to the wrong people. A marketing plan provides a blue print for business owners

to follow with hopes to bring in more than they put out.

2. Provides a plan: A marketing strategy is a plan after all, isn‟t it? Yes this is true to

an extent, but not every business uses the same methods to market. Not everyone markets

according to a plan, and this is the very reason one should write down a plan and stick to

it.

3. Defines the brand: This is a very important element of the marketing plan

because without, a business without it, a business wouldn‟t last long. They would be

exhausted. Defining a brand means knowing what you are selling, and to whom you‟re

selling it to. In other words, you must also define your audience. Without knowing who to

market to, business owners can lose valuable time.

4. Simplifies business decision: For example your marketing strategy is focused

on customer retention. And the key focus is customer services and communication.

Taking the above example you may have an idea for an email campaign or a series that

you heard gets results with new blog subscribers. This marketing tactics does not support

the marketing strategy and wastes time and money.

9

5. Targeted approach: Marketing strategies can give your marketing efforts and

campaigns a focus. Instead of hoping that customers find their way to your small business

or marketing to everyone all the time, marketing strategies help to divide what is an ocean

of consumers into navigable segments. These segments can then be addressed

individually so that your marketing message is attractive to each. The result is often a

more effective campaign and the development of a consistent level of brand recognition

amongst the target segment.

6. Better information: Marketing strategies provide you with information that you

would not have access to otherwise. Marketing strategies often require market research

and that research can help you to gain a better understanding of the market, how it works

and who your customers really are. A strategy can also help you to form goals based on a

combination of past performance and future projections. The nature of marketing

strategies and marketing plans are such that they provide a breakdown of the schedule and

the specific initiatives that are to be carried out. Such attention to performance and returns

helps create accurate and realistic annual goals and projections.

Disadvantages of marketing strategy:

1. Getting stuck: A major downside of marketing strategies is the dependency

they cause for small businesses. When a small business selects its marketing strategy

for the year, it must follow through to the end no matter the consequences. If the

market changes or the strategy fails, the amount of resources and effort put into its

development and distribution are often too great to allow for alterations and

repositioning. A one-dimensional approach to marketing is never a good idea, but in

some cases even multifaceted campaigns fall victim to too much similarity between

initiatives and too much focus on a single target market.

2. Expenses: The costs involved with some marketing strategies places them out of

reach for many small businesses. Small businesses are not able to accumulate data,

purchase information and produce specified marketing campaigns to address each

segment of the market in the same way that large corporations can. Those that do

have the means to develop and launch a comprehensive marketing strategy may find

10

it difficult to rebound with new material should changes occur or the return on

investment not be as expected. The catch is that without a marketing strategy your

small business is not likely to grow as quickly, so while expenses stay down, so does

revenue.

3. Solution: An undifferentiated marketing strategy is preferred by many small

businesses. It combines the benefits of a cohesive marketing strategy with the

freedom of operating without one. Undifferentiated or mass marketing strategies are

based on widespread, non-targeted marketing campaigns that are concerned only with

getting the word out to as many consumers as possible. There is no research involved

and no specific message to any one market segment. Instead, the small business

creates a one-size-fits-all initiative and carries it out in whatever way it sees fit. The

cost is low, the return on investment is typically high and it can be used either as a

first step toward devising more targeted strategies in the future or it can remain your

strategy for the long term.

4. Development: In order to develop a marketing strategy, each aspect must be

examined for both advantages and disadvantages. During the process, cost is usually

factored into weighing the pros against the cons of a strategy. Although an advantage

might be to bring in new customers, the disadvantage to the strategy could be it could

cost too much to gain the new customers.

5. Distribution: If a marketing strategy concerns itself with distribution, examining

and accessing the cost of different distribution methods will reveal if the strategy

should be implemented. For example, one way to distribute information is through

email marketing. Although the advantage is email marketing is relatively

inexpensive, the disadvantage is that because of the high volume of spam junk mail,

many Internet service providers have set up elaborate filters to keep out unsolicited

emails.

6. Decision: For example, although an effective marketing strategy for a product

might include TV advertising with programs that have high audience ratings, a

disadvantage to that could entail sponsoring a program that some might find

offensive or in questionable taste, which might lead to a boycott of the product or

service. Deciding whether to alienate one group over enticing another group would

need to be determined by the team behind the marketing strategy and the company

itself.

11

The Bangalore Milk Union Ltd., (BAMUL) was established during 1975 under operation Flood

II by keeping “AMUL” as its role model. At present bamul has Bangalore urban, Bangalore

rural and Ramanagara districts of Karnataka state as its area of operation for milk procurement

and selling milk in part of Bruhath Bangalore Mahanagara Palika (BBMP) area. Since its

inception the union is constantly striving further for dairy development and marketing activities

in its milk shed area.

OBJECTIVES:

To organize milk producers co-operative society(MPCS) at village level and disseminations of

information like good dairy, animal husbandry and breeding practices and clean milk production

through Extension services.

To provide assured market and remunerative price for the milk produced by the farmer members

of the co-operative societies.

To provide technical input services like veterinary services, artificial insemination, supply of

balanced cattle field and fooder seed materials etc., to milk producers.

To facilitate rural development by providing opportunities for self employment at village level,

thereby preventing migration to urban areas, introducing cash economy and opportunity for

steady income.

To provide quality milk and milk products to urban consumers at competitive prices.

Background:

On January 1st 1958 a pilot scheme to cater the Bangalore milk market, department of

animal husbandry, government of Karnataka was started milk processing facilities and veterinary

hospitals at national dairy research institute (NDRI) later in 1962, the Bangalore milk supply

scheme came into existence as an independent body. With the great efforts by then Honble

Minister for revenue and dairing government of Mysore sir M.V.Krishnappa, a joint venture of

UNCIF, government of India and government of Mysore was dedicated Bangalore dairy to the

people of Karnataka state on 23rd

January 1965 by then the Honble Prime minister late Sri Lal

12

bahadhu shastriji. The Bangalore dairy scattering over an area of 52 acres of land, the dairy had

an initial capacity to process 50000ltrs of milk per day. Bangalore dairy underwent a structural

change in December 1975, handed over to Karnataka dairy development co-operation (KDDC).

Rural milk scheme of Mysore, Hassan and Kudige districts was started under operation flood II

and then transferred to Karnataka milk federations (KMF) in May 1984 as a successor of KDDC.

To cater to the growing demand for milk by the consumers of Bangalore city, the capacity was

increased to 1.5lakhs liters per day under the operations flood II during 1981 and later increased

to 3.5lakhs liters per day under operation flood III during 1994.

As per the policies of the national dairy development board (NDDB), Bangalore dairy was

handed over to Bangalore milk union LTD., (BAMUL) on 1st September 1988. The union is

capable of processing the entire milk procured, by timely implementation of several

infrastructure projects like commissioning of new mega dairy state-of-the-art technology with the

processing capacity of 6.0lakhs liters per day, new chilling centers, renovation of product block

etc.,

The milk shed area of Bamul comprises of 2611 revenue villages. As of now the Union has

organized 2076 milk producers co-operative Society (MPCS) in 4320 villages in these three

districts. In these MPCS‟s there members are women and 59032 members belong to Schedule

Caste and Schedule Tribes.

The philosophy of this co-operative milk producer‟s organization is to eliminate middlemen and

organize institutions owned and managed by milk producers, by employing professionals.

Achieve economies of scale of rural milk producers by ensuring maximum returns and at the

same time providing wholesome milk at reasonable price to urban consumers ultimately, the

complex network of co-operative organization should build a strong bridge between masses of

rural producers and millions of urban consumers to achieve a socio-economic revolution in the

village community.

Bamul has being registered under MMPO by central registration authority. Today, the union has

become the biggest milk co-operative union in southern India. Bamul has being certified for ISO

22000:2005 and ISO 9001-2000 for quality management and food safety systems.

In recognition to this efforts and achievements, the national productivity council (NPC) of

government of India as conferred “Best Productivity Award” Five Times and “Energy

Conservation Award” by Bureau of Energy Efficiency (BEE) to the union

13

Organization status:

The member producers and there are the vital constituent of the union and their progress

in the judging yard stick on the efficiency of the unions organization. Hence the maximum

importance has been given to their development. The union is making intensive efforts over the

years to organize MPCS‟s in more and more villages of the three districts in the milk shed area.

Importance has been given to enroll more and more milk producers in the villages as members

of these MPCS‟s. While enrolling these members and to organize more women managed

MPCS‟s under step (support to training and employment program for women). It is heartening to

note that there is an active participation of women/weaker sections of society in all the dairy

development activities of the union. They have become main stay of all the developmental

programs of the union. This has resulted in the build-up of economical benefits to the most

vulnerable sections of the rural mass.

Milk procurement:

The milk produced by 108051 farms at village level will be collected every day morning and

evening at MPCS. Under clean milk production programme, to maintain the freshness of quality

of the milk 178 bulk milk coolers covering 498 MPCS of total capacity 3,30,000 liters were

installed at MPCS level. During the year the union‟s daily average milk procurement is 12.66

lakh kgs, which works out to be 630 kgs per day per MPCS. The milk procurement has increased

by 3.00% when compared to the last yea

331544 340307 337419 340448 344176 347498

105804 109834 110357 111894 118193 120239

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Total Membership & Women Membership at DCS

14

Year 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Avg. Milk

procurement in Lakhs8.29 8.87 9.44 10.48 11.45 12.66 14.19

% Growth 13% 2% 11% 11% 9% 10% 11%

AVG. Milk PROCUREMENT PERDAY

8.298.87 9.44 10.48

11.4512.66

14.19

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Till Oct‟ 15

Bamul is offering the most remunerative milk procurement price to member producers. The

operational efficiency is reflected on procurement prices paid to the member producers. The

average milk procurement price paid during the year was Rs.23.17 for every Kg of milk supplied

to the Union.

Milk collected at MPCS will be transported to chilling centers, through 125 Milk Procurement

can routes, by travelling 20,685 Km‟s every day. 32 Bulk milk cooler (BMC) Routes, are also in

operation, which collects milk from 179 BMC centers of 506 MPCS directly transported to

Bangalore dairy through insulated tankers.

Liquid milk marketing:

The Bangalore milk union is marketing milk and milk products in brand name of “Nandini”

through 1668 retailers, 70 franchise outlets, 33 milk parlours, 286 distribution routes. The key

success factor of bamul in becoming a market leader is the narrow price spread maintained

between purchase and sale, marketing higher volumes of milk. The volume of sales plays a

critical role in determining costs. Hence, the market strategy of Bangalore milk union is to regard

selling of market milk as its core marketing activity and to concentrate its efforts in these

directions to increase the volume of milk sales. The impressive growth in the sale of milk by

bamul over the years is due to the persistence effort to maintain timely supply, maintaining

quality and attending to the complaints of consumers and agents with prompt follow-up action.

15

Year 2009-10 2010-11 2011-12 2012-13 2013-14 2014-152015-16

till Oct'15

Avg. Milk Sales in

Lakhs6.68 6.97 7.56 7.85 7.94 8.45 8.93

% Growth 3% 4% 9% 378% 1% 4% 1%

AVG. Milk SALES PERDAY

6.68 6.97 7.56 7.85 7.94 8.458.93

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 till Oct'15

Bamul is also organizing consumer awareness programme as a part of market Development to

create awareness of “Nandini” milk through personal contacts, door to door campaigns,

organizational meetings, school children mega dairy plant visit etc., are conducting regularly.

Types of Milk & Milk products marketing by Bamul:

Nandini Toned Milk

Nandini Curd

Nandini Special Milk. Containing 4.0% Fat and 9.0 % SNF.

A rich, creamier and tastier milk, Ideal for preparing

home-made sweets & savories. Available in 500ml

packs.

Karnataka's most favorite milk, Nandini Toned Milk.

Fresh and Pure milk containing 3.0% fat and 8.5% SNF.

Available in 520ml and 1ltr & 6 Ltr packs. Better to use

within a day from the date of pack.

16

Year 2011-12 2012-13 2013-14 2014-15 2015-16 till Oct'15

Avg. Curd Sales in '000 95.52 100.73 98.9 115.33 124

% Growth 5% 5% -2% 14% 7%

AVG. Curd SALES PERDAY

95.52100.73 98.9

115.33124

2011-12 2012-13 2013-14 2014-15 2015-16 till Oct'15

Nandini Ghee

Nandini Butter

Nandini peda

INFRASTRUCTURE DEVELOPMENT:

The strategy of Bangalore Milk Union is “Procure More, Sell More & Serve More” and

reaping the benefits of economies of scale. In order to realize this strategy, the Union has

implemented the following projects so that more and more milk can be procured and processed.

This will help us to serve our producer members by passing on the maximum benefits; we are

consciously adopting the growth-oriented strategy of helping our producers to grow by ourselves

growing constantly.

Rich, smooth and delicious. Nandini Butter is made out of fresh

pasteurized cream. Rich taste, smooth texture and the rich purity

of cow's milk, makes any preparation a delicious treat. Available in

100 gms (salted), 200 gms and 500gms cartons both salted and

unsalted.

A taste of purity. Nandini Ghee, made from pure butter. It is

fresh and pure with a delicious flavour. Hygienically

manufactured and packed in a special pack to retain the

goodness of pure ghee. Shelf life of 6 months at ambient

temperatures. Available in 200ml, 500ml, 1000ml sachets &

15.0 kg tins.

No matter what you are celebrating! Made from pure milk,

Nandini Peda is a delicious treat for the family. Store at room

temperature approximately 7 days. Available in 250gms pack

containing 10 pieces each.

17

Mega Dairy with a capacity to

process 9 lakh litres of milk per

day expandable to 10 llpd has

been built by investing Rs. 38.70

crores obtained as term loan from

National Dairy Development

Board. The Mega Dairy, has

latest state-of-the-art

technological facilities in dairy

processing and the Union will

have the ability to manufacture

milk and milk products to world

class standards.

Although Bamul sets standards for its products for better serve to customers, it was not

possible to keep the standards stability due to manual operations. In designing mega dairy,

Bamul looked towards an automated system that would allow it to achieve consistent quality

parameters for each product. Energy and manpower would also be more effectively optimized

and controlled and all plant equipment would be integrated.

TECHNICAL INPUT SERVICES:

Bangalore Milk Union is providing various Technical Input & Extension Services to the milk

producer members & their Dairy animals through TWELVE Camp Offices situated in each Taluk

i.e., Anekal, Bangalore East, Bangalore South, Yelahanka (Bangalore North), Channapattana,

Devanahalli, Doddaballapura, Hosakote, Kanakapura, Solur (Magadi), Nelamangala &

Ramanagara. From these camps the Technical Input services like Weekly Mobile Veterinary

Service, Emergency Veterinary Service, Artificial Insemination Service, Periodical Vaccinations,

Balanced Cattle Feed Sales, Mineral Mixture Sales, Fodder development and Fodder Seed

Production, Clean Milk Production practices, Extension Services for Cattle Feeding, breeding,

insurance and milk production etc., will be carried over.

ANIMAL HEALTH AND OTHER ACTIVITIES ANIMAL

HEALTH:

The Union is taking special care to promote the health of the cattle of member milk producers.

Veterinary facilities have been extended to all the MPCS. Mobile veterinary routes, emergency

veterinary routes, Health camps, vaccination against foot & mouth disease and thaileriosis

diseases, etc., are being regularly done. Regularly Deworming is also done for the cattle. There

is also a backup of First Aid Services to needy MPCS‟s.

18

Particulars 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

MVR Cases Treated 43761 171613 251925 246788 205628 84888

Health Camp cases Treated 118307 - - -

Emergency Cases Treated 74773 88440 96617 92978 122545 90206

F& M Vaccination 528259 506479 757432 789648 - -

Rakshavac 26227 22176 21548 29980 - -

Till Oct‟15

ARTIFICIAL INSEMINATION :

Artificial Insemination (AI) has been the main functional tool in dictating this upsurge of

development of Dairying in Bamul. Farmers have taken up cross-breeding from way back in

1962. The Union has surveyed and appropriately located AI centers based on cattle population.

It is also popularized the idea of cluster AI centers and replace the Single AI centers in a phased

manner. The use of progeny tested semen from “Nandini Sperm Station” is also giving a further

boost to the breeding activities.

Particulars 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Single AI Centers 259 242 241 241 262 260

AI Done Single 115521 110780 109822 109933 122649 74537Cluster AI

Centers 101 111 114 118 127 127

AI Done Clusters 195645 221761 261439 287774 315708 221747

Total AI Done 311166 332541 371261 397707 438357 296284

Total PD Done 232556 267275 310596 353580 372764 231489

*Till Oct‟15

To reduce infertility in cattle, a frontal attack has been continuously attempted by conducting

Special Infertility Camps under the expert guidance and by the use of infertility connected drugs.

During 1999-2000, a Vertical Silo of 10,000 liter capacity for storing Liquid Nitrogen has been

installed under TMDD program in collaboration with National Dairy Development Board and

Karnataka Milk Federation. In addition this facility is being used for supplying liquid nitrogen to

neighboring Unions and also to Department of Animal Husbandry. This has helped in protecting

the quality of semen straws, thereby considerably increasing the probability of conception during

artificial insemination of cattle.

CATTLE FEED & FODDER DEVELOPMNET:

The Union is implementing several programs to increase milk production and also to reduce the

cost of milk production in the milk shed area. Balanced cattle feed is being procured from the

Cattle Feed Plants of KMF for distribution among member producers.

19

Fodder seeds are distributed to member producers at subsidized rates. In addition to this,

technical advice, Silage Demonstrations, Azzolla Demonstrations and Straw Treatment

Demonstrations are also being conducted at MPCS level. Chaff Cutters are supplied at

subsidized rates.

Cattle Feed Sales:

Particulars 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

CF Sales (in MT’s) 40529 45233 45870 46271 57264 43822

A Seed Processing plant was commissioned at Rajankunte by investing Rs. 41 lakhs. The Union

is catering to the Seed production needs of many Unions in Karnataka and also of Southern India.

YASHASVINI HEALTH INSURANCE:

Yashasvini Health Insurance Scheme was muted by Government of Karnataka during the year

2013-14. This scheme was implemented by Co-operative department, Members of Co-operative

Societies and their family members are the beneficiaries of this scheme. The annual premium is

Rs. 250/- per beneficiary. All major hospitals are adopted for this scheme, all types of surgery

will be covered under this health scheme. Bangalore Milk union has covered 2.41 Lakh

beneficiaries under this scheme by contributing Rs 50/- towards premium per beneficiary.

CATTLE INSURANCE:

Bangalore Milk Union is providing Insurance Coverage to the Dairy animals in collaboration

with United India Insurance Ltd., 1,37,853 animals are covered under this Insurance. The annual

premium is 2.60% of the value of the animal. 50% of the annual premium of Rs. 112.01 Lakh

was borne by bamul.

FINANCE:

20

1278.94 1487.17 1728.021813.37

2494.51

3844.17

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Share Capital (in Lakh Rupees)

5663369828

8821696597

124450139996

2009-10 2010-11 2011-12 2012-2013 2013-2014 2014-15

Annual Turn-over (in Lakh Rupees)

279.32 216.89486.25 521.83

3203

748.61

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

NET PROFIT (In Lakh Rupees)

21

IN Future:

We want to become not only the largest Union, but also become one amongst the best-run milk

unions in the country. The Union is aware of the challenges of the new private entrants, who are

mainly thriving on unfair trade practices.They procure milk at least cost, without bothering about

the welfare of the producers and without extending any technical inputs for improving milk

production.They market milk by resorting to unhealthy and unethical practices deceiving the

unsuspecting consumers. The Union wants to counter this in a positive manner by trying to

improve its efficiency of operation and market promotion. It wants to become well trenched in

22

the market as market leader. It wants to follow the strategy of cost-competitiveness, which is

hard to match by the competitors.

PROGRESS AND ACHIEVEMENT OF THE UNION

SINCE ITS INCEPTION:

1. Establishment of the Union:

Bangalore Co-operative Milk Producers’ Societies Union Ltd. was established on 16th

November 1976.

After the bifurcation of the above Union, into two separate union for Bangalore Districts

(Urban and Rural) and Kolar District, Bangalore Urban and Rural District Co-operative Milk

Producers‟ Societies Union Ltd. (BAMUL) on 23rd

March 1987.

Bangalore Dairy was took over by BAMUL on 1st September 1988.

Bangalore Mega Dairy started functioning on 17th

December 2000

MMPO-1992 Registration No 42/R.MMPO/93

Bangalore Dairy ISO 22000-2005 & ISO 9001-2000 Certified by Standard Australia

International (SAI) Global Ltd., a reputed Australian based company during 2006.

2. Infrastructure at the time of inception & subsequent expansion –

year-wise in terms of the following:

A. Capacity of the Dairy and Chilling Centers

1. Main Dairy

Milk Processing capacity was 60,000 Liters per day (LPD) at the time of establishment of

the dairy on 23rd

January 1965.

Milk Processing capacity was expanded to 1.5 lakh LPD on 1st February 1981.

Milk Processing capacity was expanded to 3.5 lakh LPD during 1994.

Milk Processing capacity of 6,00,000 Liters per day (LPD) fully automated Mega Dairy

started functioning from 17th

December 2000.

Converted the old building as a Product Block during 2002.

a. Anekal Chilling Center

Anekal Chilling Center was started on 12th

September 1964 with a milk chilling capacity

of 20,000 LPD.

Later the milk chilling capacity was expanded to 60,000 LPD on 28th

February 1999.

23

b. Byrapatna Chilling Center

Byrapatna Chilling Center was started on 19th

May 1962 with a milk chilling capacity of

20,000 LPD.

Later the milk chilling capacity was expanded to 60,000 LPD

c. Doddaballapur Chilling Center

Doddaballapur Chilling Center was started on 5th

January 1967 with a milk chilling

capacity of 20,000 LPD.

Later the milk chilling capacity was expanded to 60,000 LPD

d. Vijayapura Chilling Center

Vijayapura CC was established on 1st February 1995 with a milk chilling capacity of 1

lakh LPD.

e. Solur Chilling Center

Solur Chilling Center was established on 31st January 1999 with a milk chilling capacity

of 60,000 LPD.

f. Hoskote Chilling Center

Hoskote Chilling Center was commissioned on 29th

March 2000 with a milk chilling

capacity of 1.5 lakh LPD.

h. Kanakapura Chilling Center

Kanakapura Chilling Center was commissioned on 1st October 2004 with milk chilling

capacity of 60,000 LPD.

NEW PROJECTS:

Refrigeration expansion at Main Dairy with investment of Rs.700 lakhs.

To process and handle the present surplus milk a mega dairy of 5 lakh ltrs capacity is

proposed in Ramanagara district.

To process the entire milk procured by 2025, second mega dairy of 5 Lakh ltrs capacity is

proposed in Bangalore Urban District.

Implementation of NDP-1 (RBP- outlay Rs.357.72 lakhs , VBMPS- outlay Rs.4046.2 lakhs

& FD – Outlay Rs.172 lakhs)

Soluru, DB Pura, Kanakapura and Anekal Chilling Centers Up gradation are under progress..

Hosakote Dairy with processing capacity of 200 TLPD expandable to 300 TLPD with an

investment of Rs. 3866 Lakhs.

New Milk Product Block at Bangalore Dairy with an investment of Rs. 2732 Lakhs

New Curd Block Capacity of 2 Lakh ltrs with an investment of Rs 1000 Lakhs entrusted to

KMF on turnkey basis.

24

Proposal has been sent to KMF for new Byrapatna Chilling Centre of capacity 1 lakh ltrs

with an investment of 900 lakhs.

Proposal has been sent to KMF for UHT plant at BAMUL premises

8 Bulk Milk Coolers - under process by Union„s own funds.

Up gradation of Mega Dairy plant with Milk pasteurizer, cream separator and HMST

transfer line to process to 2.5 Lakh ltrs of milk.

VARIOUS SUBSIDIES/ INCENTIVES EXTENDED FOR

PRODUCTION ENHANCEMENT:

Rs. 2,50,000 grant for construction of new MPCS building.

Milk bill Advance- Interest free up to 1.5 lacs

Books and materials for commissioning of new MPCS

Furniture grant of Rs.10,500 for new MPCS

Maintenance charges for BMCs

Quality Incentives for MPCS staff

Subsidy of Rs.50/ for General & low income group and Rs.40 for SC/ST members for

yashashwini health insurance.

Subsidy of Rs.5/Semen straw and free supply of LN2 and sheaths for A.I work

A.I (Rs.10) &Calf born (Rs.10) incentives for A.I workers

Free Periodic Mass Deworming Program

Chaff cutters- 50% subsidy

Milking Machines-50% subsidy

Cattle insurance – 50% premium subsidy.

OTHER SERVICES:

Incentives to milk producers Rs.4/lit by GOK

Progeny Testing Scheme under NDDB and KMF

Ration Balancing Program & FD under NDP-1 by GOI

Calf Rearing Scheme under GOI / RKVY

Yashaswini Health Insurance under GOK

Subsidy towards Janashree Bheema Yojane-GOI

GOI Sponsored STEP Program

Farmers Orientation Program

Clean Milk Production Awareness Program

Training Programs to MPCS Staff, Managing Committee Members & Producers In KMF

CTI.

25

Competitors:

The success of each and every business unit is mainly depending on how brilliantly it faces the

competitions Mother dairy is not out of completion it has 80% market share in Bangalore &

Presently it is the brand leader for milk products. The main competitors to Mother Dairy are:

Heritage

Arogya

Good Morning

Swastik

amul

Vision, Mission and Quality policy:

Vision:

Model Co-operative in the Country:

To march forward with a missionary zeal which will make KMF a trailblazer of

exemplary performance and achievements beckoning other Milk Federations in the

country in pursuit of total emulation of its good deeds.

To ensure prosperity of the rural Milk producers who are ultimate owners of the

Federation.

To promote producer oriented viable cooperative society to impart an impetus to the

rural income, dairy productivity and rural employment.

To abridge the gap between price of milk procurement and sale price.

To develop business acumen in marketing and trading disciplines so as to serve

consumers with quality milk, give a fillip to the income of milk producers.

To compete with MNCs and Private Dairies with better quality of milk and milk

products and in the process sustain invincibility of cooperatives.

26

MISSION:

Ushering Rural Prosperity in the Lives of Member Milk Producers.

Heralding economic, social and cultural prosperity in the lives of our milk

producer members by promoting vibrant, self-sustaining and holistic cooperative

dairy development in Karnataka State

To provide good quality milk and milk products to the people,keeping in mind milk is

basic requirement of every individual

Quality policies:

During the last ten years, the Federation is giving greater emphasis on procuring quality milk

from DCSs under the concept of “Quality Excellence from Cow to Consumer”. Many

Clean Milk Production (CMP) initiatives have been implemented at all the stages of

procurement, processing and marketing. Among these CMP initiatives, noteworthy initiative

is the setting up of Community Milking Parlours in villages.

The KMF is forerunner to introduce this innovative technological initiative for bringing

about revolutionary improvement in quality of milk collected in DCSs. This system has

several advantages such as elimination of mastitis in milch animals and improvement of

productivity. The milk from milking machines, collected through Automatic Computerized

Milk Collection Units is chilled directly in Bulk Milk Coolers. This chilled raw milk,

untouched and unadulterated by human hands, has very high microbiological quality,

comparable to international standards. This high quality milk is being utilized for

manufacturing high quality value added milk products, for both domestic as well as

international markets.

Other Clean Milk Production (CMP) Initiatives include:

Training of milk producers on modern dairy husbandry practices and CMP.

Providing SS utensils, antiseptic solutions for udder cleaning on pre and post milking,

etc. to producers.

Training to DCS staff and officers of the Unions on CMP.

Replacing Aluminium milk cans and collection vessels with SS –304.

Posters, documentary films and booklets on Clean Milk Production.

27

Product profile:

Nandini milk products:

Nandini pasteurised toned milk:

Curd :

Nandini curd:

28

Nandini ghee and butter products:

Nandini sweets:

Ghee in standy Pouches Butter Salted & Unsalted Ghee in Bag

Ghee in Pet Jar Ghee in Sachet

Mysore pak Premium cashew burfi Pure milk peda

29

Manufacturing Process (Butter)

In the manufacturing of butter cream is separated from milk with the centrifugal action.

Cream is separated and thereafter acidity and other properties are tested. Then neutralization

is done to adjust the acidity of cream to keep pH 6.8-7.0 by addition of alkaline salts like

calcium oxide, calcium hydroxide, calcium carbonate, magnesium oxide and other salts.

Pasteurization of the cream is done after neutralization to improve its keeping quality as long

as standard requires. Milk is kept at 165oF for 30 minutes for removal of cream by using a

vacuum chamber in conjunction with pasteurization. After pasteurization, cream is

immediately cooled, upto 68-72oF, 5-10% of the starter is added. Keeping cream at 70oF for

several hours a fermentation takes place. A characteristic flavour and aroma will be imported

for the cream to be carried into the resulting butter.

Nandini dharwad peda Nandini khova Nandini paneer

30

Colour of butter depends upon the season. It is therefore a standard practice to add edible

colours to cream before churning, usually based on flavour, odour, acidity and appearance.

After adding these ingredients butter is cut into desirable size and packing of pieces is done,

it is placed at low temperature in cold storage.

MILK POWDER MANUFACTURING PROCESS:

SEPARATION / STANDARDIZATION:

The conventional process for the production of milk powders starts with taking the raw milk

received at the dairy factory and pasteurising and separating it into skim milk and cream

using a centrifugal cream separator. If WMP is to be manufactured, a portion of the cream is

added back to the skim milk to produce a milk with a standardised fat content (typically 26-

30% fat in the powder). Surplus cream is used to make butter or anhydrous milkfat.

PREHEATING:

The next step in the process is "preheating" during which the standardised milk is heated to

31

temperatures between 75 and 120_C and held for a specified time from a few seconds up to

several minutes (cf. pasteurisation: 72_C for 15 s). Preheating causes a controlled

denaturation of the whey proteins in the milk and it destroys bacteria, inactivates enzymes,

generates natural antioxidants and imparts heat stability. The exact heating/holding regime

depends on the type of product and its intended end-use. High preheats in WMP are

associated with improved keeping quality but reduced solubility. Preheating may be either

indirect (via heat exchangers), or direct (via steam injection or infusion into the product), or a

mixture of the two. Indirect heaters generally use waste heat from other parts of the process

as an energy saving measure.

EVAPORATION:

In the evaporator the preheated milk is concentrated in stages or "effects" from around 9.0%

total solids content for skim milk and 13% for whole milk, up to 45-52% total solids. This is

achieved by boiling the milk under a vacuum at temperatures below 72_C in a falling film

on the inside of vertical tubes, and removing the water as vapour. This vapour, which may be

mechanically or thermally compressed, is then used to heat the milk in the next effect of the

evaporator which may be operated at a lower pressure and temperature than the preceding

effect. Modern plants may have up to seven effects for maximum energy efficiency. More

than 85% of the water in the milk may be removed in the evaporator. Evaporators are

extremely noisy because of the large quantity of water vapour travelling at very high speeds

inside the tubes.

SPRAY DRYING:

Spray drying involves atomising the milk concentrate from the evaporator into fine droplets.

This is done inside a large drying chamber in a flow of hot air (up to 200_C) using either a

spinning disk atomiser or a series of high pressure nozzles. The milk droplets are cooled by

evaporation and they never reach the temperature of the air. The concentrate may be heated

prior to atomisation to reduce its viscosity and to increase the energy available for drying.

Much of the remaining water is evaporated in the drying chamber, leaving a fine powder of

around 6% moisture content with a mean particle size typically of < 0.1 mm diameter. Final

or "secondary" drying takes place in a fluid bed, or in a series of such beds, in which hot air

32

is blown through a layer of fluidised powder removing water to give product with a moisture

content of 2-4%. Precautions must be taken to prevent fires and to vent dust explosions

should they occur in the drying chamber or elsewhere. Such explosions can be extremely

dangerous to life, property and markets.

PACKAGING AND STORAGE:

Milk powders are immensely more stable than fresh milk but protection from moisture,

oxygen, light and heat is needed in order to maintain their quality and shelf life. Milk

powders readily take up moisture from the air, leading to a rapid loss of quality and caking or

lumping. The fat in WMPs can react with oxygen in the air to give off-flavours, especially at

higher storage temperatures (> 30_C) typical of the tropics.

Milk powder is packed into either plastic-lined multi-wall bags (25 kg) or bulk bins

(_ 600 kg). WMPs are often packed under nitrogen gas to protect the product from oxidation

and to maintain their flavour and extend their keeping quality. Packaging is chosen to

provide a barrier to moisture, oxygen and light. Bags generally consist of several layers to

provide strength and the necessary barrier properties. Shipments of milk powder should

never suffer prolonged exposure to direct sunshine especially in tropical countries. A few

hours at elevated temperatures (> 40_C) during transshipment can negate many weeks of

careful storage.

AGGLOMERATED POWDERS:

Standard powders, because of their fine dusty nature, do not reconstitute well in water.

"Agglomerated" and "instant" powders were specifically developed to counter this. The

manufacture of an agglomerated powder initially follows the standard process of evaporation

and drying, described above. However, during spray drying small particles of powder

leaving the drier (the "fines") are recovered in cyclones and returned to the drying chamber in

the close proximity of the atomiser. The wet concentrate droplets collide with the fines and

stick together, forming larger (0.1-0.3 mm), irregular shaped "agglomerates". Agglomerated

powders disperse in water more rapidly and are less dusty and easier to handle than standard

33

Production of Peda:

Manufacturing process:

It is one of the sweets prepared.

Only milk and sugar that is nearly 7% of sugar and only whole milk is added.

For every batch 1 -1.45minutes time is taken.

Yield is 23-24%.

Peda contract Packing is done 250gm, 1kg, 10kg, and 20kgs.

Production of khova:

Khova is prepared without addition of sugar.

The yield is 16%.

There is rapid agitation.

Dehydration of moisture.

Vaporization takes pace.

Steam is operated and circulated.

Agitation will be more in the final stage.

34

Organizational structure:

C

Managing director

General manager

Marketing Administration Finance P & I QC Production Purchase

/sales

Manager

Deputy

manager

Assistant

manager

Zonal

officer

Super-

intendent

Marketing

assistant

Deputy

manager

Assistant

manager

Administrative

assistant-II

Administrative

assistant-I

Super-

intendent

AO/PRO/

PS/TO

manager

Deputy

manager

Assistant

manager

Accounts

officer

Super-

intendent

AA-

I/II/III

Manager

extension

officer

Assistant

manager

Super-

intendent

Deputy

manager

AA-

I/II/III

Chemist I

Technical

officer

Assistant

manager

Deputy

Manager

Manager

r

Chemist II

Chemist

Technical

manager

Assistant

manager

Deputy

manager

Manage

r

Assistant

manager

Deputy

manager

manager

Dairy

operators

PO/SO

Super-

intenden

t

AA-

I/II/III

35

Key Functional Areas:

1. PURCHASE DEPARTMENT

PURCHASE DEPARTMENT STRUCTURE

This is fact that, every organization requires material during functioning. Hence purchase

department fulfill all the material needed for each and every department.

General Manager

Deputy Manager

Assistant Manager

Purchase/Store

Officer

Superintendent

Account Assistant I

Account Assistant II

Account Assistant III

36

BAMUL has a centralized purchase department headed by a well experienced and qualified

purchase officer/purchase manager who in turn is assisted by assistant manager.

If the materials to be purchased are less than worth purees one lakh, the quotations are

collected from suppliers or the enquirer of Bamul. If the quality of the material is at par, the

purchase committee negotiates the price with the supplier. The purchase committee

comprising of managing director and section heads of each departments.

If the materials purchased are more than worth Rs 1 lkh, a tender notice is published in a

leading daily newspaper. The producer to bit for the tender is mentioned in the notice itself

and selection of the supplier is done on the basis of low-bid with the necessary condition that

the material complies as per the desired quality.

TERMS AND CONDITIONS:

Price: No enhancement in price during this contract will be allowed. Taxes and duties,

specifically agreed will be paid to the supplier on production of relevant certificates.

The Bamul reserves the right to cancel the order. If the cancellation of order is due to

noncompliance by the suppliers then the supplier shall be responsible for any direct

and indirect loss that Bamul may suffer in making alternative arrangements for the

materials, without prejudicing to the Bangalore dairy‟s right to over liquidated

damages.

The materials will be subject to test and inspection by the bamul the decision of

Bamul as to rejection of the materials shall be final and binding on the supplier.

The supplier shall be responsible for any defects in the materials that may develop

when they are used arising from faulty materials, workmanship or otherwise.

Rejections: Any materials rejected by Bamul, shall be collected by the supplier and

removed within 15days from the date of receipt of information of such rejection at

their risk and costing to the materials.

Risk: The materials shall be supplied at the risk of the supplier.

Sample: Sample has to be submitted by the supplier whenever asked for free of cost.

FUNCTIONS OF PURCHASE DEPARTMENT:

37

Evaluating and rating of suppliers.

Selecting of suppliers.

Finalization of terms of purchase.

Placement of purchase orders.

Follow-up

Approval of payment to suppliers.

2. PRODUCTION DEPARTMENT

PRODUCTION DEPARTMENT STRUCTURE

Objective:

Execute co-ordinate, organize and monitor the production activities.

Increase the input as for as possible.

Deputy Manager

Assistant Manager

Technical Manager

Chemists

Dairy Reports

General Manager

38

Decrease the cost of production and wastages in production as much as possible.

Ensure process, control and quality of products manufactured.

Also ensure that the production meets the planned requirements within stipulated

time.

Functions:

.Maintain and produce the standard quality products.

Cost of production

Using of advanced technology.

Maintain inventory of both raw materials and finished products.

Produce different quality products to meet the market needs and wants

3. MARKETING DEPARTMENT:

Marketing Department structure

Deputy Manager

Assistant Manager

Zonal Officer

Superintendent

Marketing Assistant

General Manager

39

MILK PRODUCTS MARKETING:

The products produced has to reach to its end consumers in a good quantity so the marketing

department has a vital role at BAMUL. Even though the production department produces the

product they have to know the quality of their product. To the entire Bangalore city and to

other states BAMUL is marketing its milk products through 148 distribution routes. The

volume of sales plays a critical role in determining cost. Milk products have been distributed

twice in a day that is in morning and in afternoon. The distribution routes are allotted to other

basis of quantity of milk products or the number of creates in geographically convenient

pattern.

OBJECTIVES OF MARKETING DEPARTMENTS:

To meet the expectation of the customers.

The integrated business plan of union is to achieve the sales target.

Undertake promotional activities in order to create awareness about the product.

Channel members needs are fulfilled.

Nandini products are known to occupy their leadership in the market.

They make the payment through to identical ways that is through cheque and cash. In cheque

there should be at least minimum deposit of Rs.45,000 in order to achieve this scheme. The

cheque received by the dairy are presented in their concerned banks and if it is bounced

necessary action will be taken. In cash basis the minimum deposit is Rs.15,000.according to

this agents make there payments incase if the agent fails the next day the milk supply is

stopped. Agents are the retailers who make the orders in bulk.

The wholesalers are the intermediates who will purchases in large quantity. Usually dairy

supplies the milk and other products in the quality prescribed by distributors.

Promotions:

They have a good brand loyalty among the consumers for media of Promotional activities but

still they are struggling to occupy the market share. dairy has good market share. They spend

only a small amount of profit towards the advertisement of their products but other dairy like

KMF and mother dairy are mostly concerned in promotional activities. Through newspaper,

television etc., they promote.

40

Functions:

They conduct the market survey to analyze the consumers feedback of their product.

Required step is taken to improve market share.

Advertising the sales promotion.

4. FINANCE DEPARTMENT

FINANCE DEPARTMENT STRUCTURE

Deputy Manager

Assistant Manager

Accounts Officer

Superintendent

Account Assistant I

Account Assistant II

Account Assistant III

Deputy Manager

General manager

41

Objectives:

The main objective of finance department is as follows:

To reduce the funds and to protect the financial interest of the company.

To assess the working capital requirements.

To monitor the budget and also funds and payments.

Sources of Finance:

Finance department is the main source for any organization. In BAMUL the main source of

finance is sale realization. The analysis of financial statements is a process of evaluating

relationships between component parts of financial statements to obtain a better

understanding of the firm‟s position and performance. The portability period of other milk

products is slightly more i.e., for 3-4 months and sales are released and the money gained out

of it can be classified as long-term source of finance. Sometimes they even get grant from

government. The operating profit in the year 2004-05 has come down by 53.5% because

heavy advertising and selling expenses.

Functions:

Maintaining proper accounts for milk purchased and sold every day.

Maintaining of general ledgers and store books.

Maintaining of profit and loss account and balance sheet systematically.

Make use of available financial resources properly.

Paying taxes and insurance in time.

Maintain liquidity of assets properly to earn maximum profit.

42

5. ADMINSTRATION DEPARTMENT

Personnel Department

Functions:-

Recruit the candidates and select the suitable candidate for the job.

Conduct the training to the new employees as well as to the existing

employees.

Maintain shifts timing, etc.

Maintenance of attendance and service records

Deputy Manager

Assistant Manager

Administrative

Officer/Personal Secretary/

Time Officer/Public Relation Officer

Superintendent

Administrative Assistant GR I

Administrative Assistant GR II/ steno

SR typist

General manager

43

Recruitment policy:

Recruitment to any service or posts shall be made by direct recruitment which may

be either by competitive examination or interview or selection, which may be either

by selection on the basis of merit-cum seniority provided that that is respect of direct

recruitment to any service of post, when the method of recruitment is not specified in

rules of recruitment. Appointments for the posts shall be resaved for the members of

SC/ST CAT-I and other categories of back word classes to such extent and in such

manner as may be specified by the government under class 4 of the article 16 of

constitution of India. There is the provision even for physically handicapped and ex-

servicemen. The reservation for women shall be in accordance with the provisions of

government orders from time to time.

Few Benefits provided to employees:

Employees are provided with certain allowances.

In BAMUL they provide shift allowance to the employees.

Training is provided to all employees in their particular fields,

Half liter of milk per employee is given free flush season and at half of price

for remaining 10 months.

Cheaper rates in the canteen.

They provide tea in the break time and 1Kg ghee per year.

Training is given to all those employees appointed on direct recruitment basis. A

probationer of trainer is appointed by BAMUL to conduct the training program.

Promotion may be either through means of selection or from one cadre to higher

cadre on the basis of seniority cum merit and automatic grant of special promotion

to seniti employees if provided.

Salary to the employees include the basic pay, dear allowance and other allowance. The

termination to the employees at Bamul happens on the events of if a permanent employee

completes 58 years of age, Expired while on service, Terminated for resigned from service.

44

Functions:

Selection of the right person.

Employees are trained in an efficient manner

Good working environment

Motivation is given to the employees and benefits are provided.

Increasing the performance of employees.

Compensation

SWOT ANALYSIS:

STRENGTHS:

Wide distribution network leads to regular and timely supply.

Milk processed is local therefore reduced transportation cost.

Automated Computerized plant.

Wide product range

An ISO, HACCP, EMS certified company

Prompt consumer‟s complaint redressed.

Maintaining uniform quality

Automatic correction power factor unit

Brand loyalty among consumers

45

WEAKNESS:

Excess manpower

Less advertisement

Lack of flexibility in the system

Promotion is based on seniority

Retention of brilliant brain is difficult

OPPORTUNITIES:

Checking the processing and packing unit.

Addition of new varieties to the existing products

It has an opportunity to introduce new products like ready to eat sweets,

cheese, low fat milk chocolates and biscuits

Can expand its marketing activities all over the India

It can increase its sales and grab the unoccupied market share.

THREATS:

Irregular power shutdowns and inter-dairy competition.

Entering of MNC‟s.

Entry of loose milk providers at cheap rates.

46

Title of the study:

A study on “Marketing Strategies at Nandini milk products of BAMUL”.

Statement of the problem:

To understand and determine the marketing strategy of Nandini milk products and the

challenges faced by Nandhini. And to know the challenges.

Objectives of the study:

There were two main objectives for this study. One is primary objectives and another is

secondary objectives.

To understand the marketing strategy towards Nandini milk products.

To determine the retailers opinion on Nandini milk product and the problem faced by

them.

To get the feedback on what the consumer expects from NANDINI.

To determine the needs of the retailer.

Scope of the study:

The study relates all agents/retailers and users of NANDINI milk products in

bangalore.

Nature of the study:

A descriptive research has undertaken for the present study. Descriptive research

includes survey and facts findings of different kinds.

47

Data collection:

The present study was designed by the help of both primary and secondary

information data.

Primary data: Primary data was collected from respondents through survey

method with a structured questionnaire designed for two segments i.e. consumers as

well as retailers. A part of primary data was also collected from the marketing

department of the company.

Secondary data: The present project is framed with help of several information. The

information is from various secondary sources. These includes information about the

milk industry from journals. Also in the review of literature the different web-sites

helped a lot to get some idea for the present project. A bunch of information was

collected from various news articles and dissertation. Different libraries helped a lot

to make the base a strong one. Secondary data was also collected from various

sources for e.g. text books, periodicals, newspapers, and from various web-sites

Universe:

In case of Consumers the universe is infinite.

In case of Retailers the universe is finite.

Sampling plan:

As the universe under study was large and time was limited it was quite impossible to contact

each and every consumer of milk and also retailers of milk. So a simple survey was adopted.

The sampling plan used in the present study is as follows:

Sampling unit: The target respondents were individuals who consumes milk and milk

related products and the retailers/agents of Nandini milk products.

Sample size: Agents/Retailers:56

Consumers:100

48

Type of sampling:

Systematic sampling Technique is used for retailers wherein every 10th

retailer is being

considered out of 565 retailer outlets of NANDINI in bangalore North.

Convenient sampling technique is used for consumer where 100 consumers of the

NANDINI milk products is being considered.

Tools for data collection:

Two structured questionnaires were designed as tools for primary data collection. The

questionnaire comprised of both close and open ended question. Each questionnaire shows

the demographic characteristics of individuals consumers and as well as retailers.

Limitations of the study:

The following were the main limitations of the study:-

Most of the respondents were either busy or were unable to respond properly to the given

questionnaire.

Time was the main constraint for the present study.

The respondent‟s response to the given questionnaire was sometime biased and the study

was based on the assumptions that the information provided is correct.

The sample was restricted to only 100 due to limited time. This may be very small compare

to total universe. So the study also suffers with the limitations of the generalizing the result.

Theoretical Background of the study:

49

Introduction to marketing

Marketing is the performance of business activities that direct the flow of goods and services

from the producer to customer.

-American Marketing Association

Many organizations have involved in marketing activities to satisfy the needs and wants

of a group of customers. Now-a-days marketing is not considered as a mere physical process

or set of activities connected with the exchange of goods. It is regarded as a philosophy of

business. It is concerned with creation of customers.

It includes all those activities connected with identifying the need of the consumable and

then, organizing the according to meet the needs of the consumers.

Importance of marketing management:

Marketing management is the most important function in the business

organization.

It looks after the marketing system of the firm

It plans the develops the product on the basis of know demand.

It has to prepare appropriate marketing plans or marketing mix to achieve the

business goals.

Function of marketing management:

The function of marketing management is summarized as follows:

Determination of marketing goals

Formulation marketing plans, procedures, policies etc

Designing marketing strategies and marketing mix

50

Planning marketing programmers

Marketing is a comprehensive term and it includes all resource and a set of activities

necessary to direct and facilities the flow of goods and services from producer to consumer in

the process of distribution. Business man regards marketing as a management function to

plan, promote and deliver products to the clients or customers. Human efforts finance and

management constitute the primary resources in marketing.

Main view point’s management is as follows:

Analyzing, planning, implantation and Control programs.

Mutual and personal gain

Achieving effective response.

Modern marketing concept:

The marketing concepts evolved over a century starting from on set of industrial revolution,

production concept and selling concept, social marketing concept right up to date.

Consumer:

The term “consumer” refers to a person who buys goods or services for his personal or

household use and not resale. Consumer behaviour is the process whereby individual decide,

what, when, where, how and whom to purchase goods and services”

Consumer behaviour has been gaining importance since 1960. the growth of

consumerism and enactment of consumer legislations emphasizes the importance of

consumer behaviour study. Today the consumer behaviour is the central topic in modern

marketing. Since the ultimate aim of marketing is consumer satisfaction and profit earning.

Importance:

51

In olden days marketing was seller oriented and there was seller market. The

consumer had to purchase whatever was offered to him. They had no choice. So the study of

consumer behaviour was not important to marketers. Now things have changed modern

marketing has become consumer oriented and there is a buyer market. If the choices,

performance tastes and attitudes of the consumer are neglected.

No marketing efforts can be successful. Therefore the study of consumer behaviour is

very much essential success in business.

The study of marketing strategy is important for the following

purposes:

Production policies

Price policies

Distribution policies

Sales promotion policies exploiting marketing opportunities

Plan for customer service:

Understand customer expectations

Establish customer priority

Define service goals

Get external commitment from top to bottom

Establish service infrastructure

Develop employee through training and compensations

Measure customer satisfaction

Set customer expectation

52

Search for complainers.

Factors influencing consumer behaviour:

Consumers do not make purchase decision simply. Their buying behaviour is influenced by

culture, social, personal, and psychological determinants or factors. All these factors are

controllable and beyond the hands of a marketer. They are considered in understanding buyer

behaviour.

Determinants of consumer behaviour:

The “satisfaction of the customer “can be easily canalized studying the behaviour of the

customers. Customer Behaviour can be said to be the study of how individuals make decision

on how spend their available resources (time, money and effort) on the various consumption

Cultural factors

Religion, caste, beliefs

Social factors

Social classes

Personal factors

Age, gender, income, education, occupation

Psychological factors

Personality, learning, perception, attitude

53

related items. This simple definition of customer behaviour tells marketers to resolve every

activity around the ultimate customer and gauge their behaviour.

The behaviour of the customer helps the marketing to study, what factors influence the

decision making process of the customers. The decision making process identifies the number

of people who are involved in this process and ascribe a role of them.

All the firms have started considering “COSTUMER AS THE KING “or “QUEEN”. The

market place is flooded with many new players including the host of MNC‟s resulting is

available of more number of brands in every segment of the market. On account of this

customer stated being choosy about what to buy.

54

1. Age of the respondents

Table 1

ANALYSIS: From the total number of respondents we come to know that, maximum

number of respondents are between the age group of 31-40

Age

>40

31-40

20-30

15-20

INTERPRETATION: The above graph shows that number of respondents are in the age

group of 31-40. This Graph shows that most of the numbers of respondents are mature, and

the response given can be considered.

AGE Frequency Percent Cumulative

Percent

15-20 10 10.0 10.0

20-30

25

25.0

35.0

31-40

45

45.0

80.0

>40

20

20.0

100.0

Total

100

100.0

55

2. Occupation of the respondents

Table 2

OCCUPATION Frequency Percent Cumulative Percent

Housewife 58 58.0 58.0

Businessman 10 10.0 68.0

Employed

12 12.0 80.0

Unemployed

16 16.0 96.0

Others

4 4.0 100.0

Total

100 100.0

ANALYSIS: The above table has been designed to know about the respondent‟s occupation.

This table shows that 58% of them are housewiwes,who know the product well as they are

the one mostly using the product.

Occupation

Occupation

OthersUnemployedEmployedBusinessmanHouse Wife

Fre

quen

cy

70

60

50

40

30

20

10

0

INTERPRETATION: The above graph shows that the majority of the respondents are

housewives.

56

3. How did you come to know about Nandini milk products.

Table 3

Valid Frequency Percent Cumulative

Percent

Advertisements 28 28.0 28.0

Recommended By family

And Friends

36 36.0 64.0

Company's Promotional

Schemes

15 15.0 79.0

Others

21 21.0 100.0

Total

100 100.0

ANALYSIS: The above table is prepared to know how the respondents came to know about

the products. It can be observed that, 36% of the respondents are got the information from

family & friends, 21% of the respondents from others, 28% of the respondents have got much

more information from advertisements, & lest number of respondents ie 15%got the

information from Company's Promotional Schemes.

Promotion

Promotion

Others

Company's Promotiona

Recommended By famil

Advertisements

Fre

quen

cy

40

30

20

10

0

INTERPRETATION: The above chart shows that maximum number of respondents have

collected the information from their friends and relatives.it also shows that least no of

57

respondents got to know about the products from Company's Promotional Schemes.So, the

company need to invest more on their Promotional Schemes.

4. Why do you prefer nandini products

Table 4

Valid Frequency Percent Cumulative

Percent

Taste 52 52.0 52.0

Hygiene Packaging

14

14.0

66.0

Price

8

8.0

74.0

Quality

14

14.0

88.0

Others

12

12.0

100.0

Total

100

100.0

ANALYSIS: The above table shows that, out of 100 respondents, 52% of the respondents

like the product because of its taste, 14% of the respondents like hygiene, 8% of the

consumers prefer price,14% like it because of its quality and 12% of the respondents like

other features of the product.

Factors Influencig

Factors Influencig

OthersQualityPriceHygiene PackagingTaste

Freq

uenc

y

60

50

40

30

20

10

0

INTERPRETATION: Graph shows that, the major portion of the respondents like the

product‟s taste, and the graph also shows that company should improve the quality & packing

of the product to further satisfy consumers.

58

5. What do you perceive about the quality of the Nandini Milk products.

Table 5

Valid Frequency Percent Cumulative

Percent

Excellent 50 50.0 50.0

Very Good

27 27.0 77.0

Satisfactory

13 13.0 90.0

Poor

10 10.0 100.0

Total

100 100.0

ANALYSIS: From the above table‟s information 50% of the respondents perceive the quality

of the products to be excellent, 27% think its very good, 13% think it is satisfactory, 10%

perceive product quality is poor.

Perception Towards Quality

Perception Towards Quality

PoorSatisfactoryVery GoodEcellent

Fre

quen

cy

60

50

40

30

20

10

0

INTERPRETATION: From the respondents point of view half of the respondents perceive

quality of the products is good, the company should keep it up to and aim to achieve 100%

quality excellency.

59

6. What do you think about the pricing policy of the Nandini Milk products

Table 6

Valid Frequency Percent Cumulative

Percent

Expensive 8 8.0 8.0

Moderate

52 52.0 60.0

Reasonable

23 23.0 83.0

Cheap

17 17.0 100.0

Total

100 100.0

ANALYSIS: From the above chart out of 100 respondents 8 respondents think it is expensive

& 52 respondents feel the price is moderate & affordable, 23 respondents feel the price is

reasonable compared to other products, and the remaining of the respondents ie 17 of them

think the product is cheap.

Perception Towards Price

Perception Towards Price

CheapReasonableModerateExpensive

Fre

quen

cy

60

50

40

30

20

10

0

INTERPRETATION: Most of the respondents feel the product is affordable & lest number

of respondents think the products are expensive.

60

7. What do you feel about the packaging of the Nandini Milk products

Table 7

Valid Frequency Percent Cumulative

Percent

Exellent 8 8.0 8.0

Good

62 62.0 70.0

Average

20 20.0 90.0

Bad

10 10.0 100.0

Total

100 100.0

ANALYSIS: The above table has been designed to know the opinion about the packaging of

nandini products. From the respondents point of view 62% of the respondents feel it is good,

8% of them think it is excellent, 20% feel it is up to average, 10% feel it is bad.

Prception Towards Packaging

Prception Towards Packaging

BadAverageGoodExellent

Fre

qu

en

cy

70

60

50

40

30

20

10

0

INTERPRETATION: This graph reveals that, most of the respondents feel the packaging is

good, and only 10% of the respondents feel it is bad so it shows that company has good

packaging for their products.

61

8.Which other brand do you prefer.

Table 8

Valid Frequency Percent Cumulative

Percent

Heritage 12 12.0 12.0

Amul

42 42.0 54.0

Dodla

32 32.0 86.0

Nilgiris

14 14.0 100.0

Total

100 100.0

ANALYSIS: The above table shows that, out of 100 respondents, 12% of the respondents

would opt for heritage, 42% of the respondents would opt for amul, 32% of the respondents

would opt for dodla and 14% of the respondents would opt for nilgiris.

Preffered Other Brands

Preffered Other Brands

NilgirisDodlaAmulHeritage

Freq

uenc

y

50

40

30

20

10

0

INTERPRETATION: the above graph shoes that the majority of the respondents opt for

amul & dodla brand, these brands pose as the nearest competitors to nandini.

62

9. What do you feel about the taste of the Nandini milk Products

Table 9

Valid Frequency Percent Valid

Percent

Cumulative

Percent

Excellent 40 40.0 40.0 40.0

Good

44 44.0 44.0 84.0

Moderate

14 14.0 14.0 98.0

Bad

2 2.0 2.0 100.0

Total

100 100.0 100.0

ANALYSIS: the table shows that out of 100 respondents 40% feel that taste of the product is

excellent, 44% thin it is good, 14% feel the taste is moderate,& only 2% feel the taste is bad

Perception Towards Taste

Perception Towards Taste

BadModerateGoodExellent

Fre

quen

cy

50

40

30

20

10

0

INTERPRETATION: as the above graph shows that maximum number of the respondents

feel the taste is good and excellent and the company can use this feature in its promotional

and advertisement activities to further boost the sales of their product.

63

10. How do you find the packing of Nandini milk products

Table 10

Valid Frequency Percent Valid

Percent

Cumulative

Percent

Attractive 85 85.0 85.0 85.0

Not Attractive

15 15.0 15.0 100.0

Total

100 100.0 100.0

ANALYSIS: The above table shows the perception of the respondents towards the

attractiveness of packaging of nandini products in which we can see that out of 100

respondents 85 of them perceive the packaging is attractive and rest if them ie 15 respondents

feel the packaging to be not attractive.

Perception Towards Attarctiveness

Perception Towards Attarctiveness

Not AttractiveAttractive

Freq

uenc

y

100

80

60

40

20

0

INTERPRETATION: As maximum number of respondents perceive the product packaging

is attractive the company can continue with its packaging, and may improve to gain 100%

satisfaction.

64

11. How much satisfied are you with Nandini milk products.

Table 11

Valid Frequency Percent Cumulative

Percent

Very Satisfied 26 26.0 26.0

Satisfied

34 34.0 60.0

Fairly Satisfied

38 38.0 98.0

Not Satisfied

2 2.0 100.0

Total

100 100.0

ANALYSIS: The above table has been designed to know the satisfaction level derived by

consumers from nandini products. From the respondents point of view 26% of the

respondents are very satisfied, 34% of them are just satisfied, 38% feel the product is fairly

satisfying,and only 2% feel they are not satisfied.

Satisfaction Level

Satisfaction Level

Not SatisfiedFairly SatisfiedSatisfiedVery Satisfied

Freq

uenc

y

50

40

30

20

10

0

INTERPRETATION: The above chart shows that maximum number of respondents are

very satisfied or fairly satisfied. It also shows that very least no of respondents are not

satisfied by the product.

65

RETAILERS:

1. Since how long are you dealing with Nandini milk products.

Table 1

Period Frequency Percent Cumulative

Percent

less than 1 year 4 7.1 7.1

1-2 years

11 19.6 26.8

2-3 years

15 26.8 53.6

more than 3 years

26 46.4 100.0

Total

56 100.0

ANALYSIS: From the above table‟s information 7.1% of the respondents have been dealing

with nandini products for less than a year, 19.6% are dealing from 1-2 yrs, 26.8% are dealing

from2-3yrs,and 46.4% are maximum respondents are dealing for more than 3 years.

Period

more than 3 years

2-3 years

1-2 years

less than 1 year

INTERPRETATION: as the maximum number of respondents are dealing with the products

for more than 3 yrs they have sufficient experience of the product and the product market

66

hence, the response given by them can be considered to make the necessary changes in the

products.

67

2.What is opinion on the margin of commission given for Nandini milk products

Table 2

Margin Of

Commission

Frequency Percent Cumulative

Percent

very satisfied 15 26.8 26.8

Satisfied

17 30.4 57.1

fairly satisfied

18 32.1 89.3

not satisfied

6 10.7 100.0

Total

56 100.0

ANALYSIS: the above table is designed to show how satisfied the retailers are with

their commission.26.8%of them are very satisfied, 30.4% of them are satisfied, 32.1%

of them are fairly satisfied, and least number of retailers i .e. 10.7% of them are not

satisfied.

Margin Of Commission

Margin Of Commission

not satisfiedfairly satisfiedsatisfiedvery satisfied

Fre

qu

en

cy

20

10

0

INERPRETATION: the above graph shows that almost 90% of the retailers are

satisfied to some extent and only about 10% of them are not satisfied. We can assume

that nandini is giving its retailers a good rate of commission.

68

3. Do you find seasonal variations in demand for Nandini milk Products.

Table 3

Variation in

Demand

Frequency Percent Cumulative

Percent

Yes 6 10.7 10.7

No

50 89.3 100.0

Total

56 100.0

ANALYSIS: From the above table‟s information only 10.7% of the retailers say there are

seasonal variations in demand, and 89.3% of the respondents say they do not find any

variations in seasonal demand.

Variation in Demand

Variation in Demand

NoYes

Fre

qu

en

cy

60

50

40

30

20

10

0

INTERPRETATION: The above graph shows, what the retailers think about the seasonal

variations in Nandini products.

69

4. Are the products supplied efficiently throughout the year.

Table 4

Efficient

Supply

Frequency Percent Cumulative

Percent

Yes 48 85.7 85.7

No

8 14.3 100.0

Total

56 100.0

ANALYSIS: the above table shows the retailers‟ opinion about the efficient supply of

the products throughout the year, for which 85.7% of them say the supply is efficient

and 14.3% of them say there is no efficient supply.

Effiient Supply

Effiient Supply

NoYes

Fre

qu

en

cy

60

50

40

30

20

10

0

INTERPRETATION: the above graph shows that the company delivers its products

efficiently to most of the retailers and the company should aim to deliver its products with

same efficiency to all the retailers in all the areas.

70

5. What is your opinion on Nandini milk products.

Table 5

Opinion on Nandini

Milk Products

Frequency Percent Cumulative

Percent

Very Good 32 57.1 57.1

Average

22 39.3 96.4

Bad

2 3.6 100.0

Total

56 100.0

ANALYSIS: the above table shows the retailers opinion towards nandini milk

products in which 57.1% of them say it is very good, 39.3% of them say it is average

and only 3.6% of them say it is bad.

Opinion on Nandini Milk Products

Opinion on Nandini Milk Products

BadAverageVery Good

Fre

quen

cy

40

30

20

10

0

INTERPRETATION: the above chart shows the retailers opinion i e the whole picture of

the products that include their ,commission, storage, incentives/gifts given to them, etc. For

which out of 56 respondents 32 say it is very good, and only 2 retailers say it is bad.

71

6. Are suppliers as per schedule.

Table 6

Suppliers on

Schedule

Frequency Percent Cumulative

Percent

Yes 45 80.4 80.4

No

11 19.6 100.0

Total

56 100.0

ANALYSIS: the above table shows what the retailers feel about the timely supply of

the products for which 80% of the retailer say the suppliers are on schedule and 19.6%

of the retailers say there is no timely supply.

Suppliers on Schedule

Suppliers on Schedule

NoYes

Fre

qu

en

cy

50

40

30

20

10

0

INTERPRETATION: The above graph shows that most of the retailers i e 80.4% of them

receive their goods on schedule and 19.6% of the retailers don‟t get their products on

schedule.

The company should concentrate on the supply of their products so that both the retailer and

the company can gain from it.

72

7. What is your mode of payment.

Table 7

Mode of

Payment

Frequen

cy

Perce

nt

Cumulati

ve

Percent

Cash 56 100.0 100.0

Credit 0 0 0

ANALYSIS: The above table shows the mode of payment to the company done by the

retailers in which out of 56 retailers all the retailers prefer to pay through cash and

none of them opt for credit.

Mode of Payment

Mode of Payment

Cash

Fre

qu

en

cy

60

50

40

30

20

10

0

INTERPRETATION: As all the retailers prefer to pay in cash the company can have good

financial turn over periodically and the need to maintain records and appointing of personnel

to collect the dues from the retailers is not necessary.

73

8. If you give bulk orders will you get immediate supply.

Table 8

If Bulk Order

will you get

Immediate

Supply

Frequency Percent Cumulative

Percent

Yes 11 19.6 19.6

No

45 80.4 100.0

Total

56 100.0

ANALYSIS: The above table shows whether the company gives immediate supply if a bulk

order is placed. For which most of the respondents i.e. 80.4% say no and only 19.6% say

they get immediate supply.

INTERPRETATION: The above chart shows that only 19.6% of the retailers get immediate

supply for the bulk orders placed.

The company can concentrate on this type of bulk orders and deliver immediately so that it

encourages the retailer to place more such bulk orders and also the company can save on the

transportation expenses in this order.

11

45

yes

no

Immediate

supply

74

9. Do you come across any damaged goods

Table 9

Damage Goods Frequency Percent Cumulative

Percent

Yes 42 75.0 75.0

No

14 25.0 100.0

Total

56 100.0

ANALYSIS: The above table shows whether the retailers receive any damaged good.

For which 75% of the respondents ray they receive damaged goods and 25% of the

respondents say they do not receive any damaged goods.

INTERPRETATION: The above table shows that 75% of the retailers s receive damaged

goods the company should avoid this as the damaged goods is a loss for both the retailer and

the company. The company should improve its packing of the products to reduce this kind of

damages.

42

14

yes

no

75

FINDINGS FROM THE CONSUMERS AND RETAILERS

It was found from the survey that majority of the respondents of them are

housewives

It was found from the survey that majority of respondents are in the age

group of 31-40

The survey shows that the access to Nandini Milk is quite convenient for most

of the respondents.

The opinion about quality is excellent

Most of the respondents were influenced by the taste of the Nandini Milk

products.

More than half of the respondents of them consider the price of the Nandini

Milk products as moderate.

The packaging is viewed as good by the consumers.

Out of 100 respondents an majority of the respondents majority of them

came to know about the product by the family and the friends

Consumers consider Amul as the next better product

It was found from the survey that majority of the respondents are satisfied

by the Nandini product.

76

It was found from the survey that majority of the respondents have no

complaints from the Nandini product.

Most of the retailers are holding the dealership for more than 3 years but they

are not satisfied by the margin of commission.

Even though the supply is on time when there is a bulk order there is no back

up by the KMF.

Most of the retailers have good opinion on the nandini milk products but they

receive some damage goods.

Retailers also like consumers feel there is lack of promotion to the products

and no executive visit at all.

77

Suggestions:

“Consumer is king” is the traditional beliefs amongst the Indian businessmen. It holds good

even today and will be more so in the highly competitive days ahead. . The emphasis on

quality relates not only to product quality but also to the quality of service.

Retailers dealing with Nandini Milk Products has to be given more incentives

to push the sales of Nandini Milk Products.

Due to the increasing competition the company has to adopt new and

improved promotional strategies to attract new and retain existing customers

through better relationship with the retailers.

It is better to conduct a continuous or periodic market research to identify the

position of the market and to know about the changes what customers want in

their products.

Considering greater market demand the research suggested Nandini to adopt

middleman as well as retailer in order to proper distribution and smooth functioning

of the product in the market.

The density of milk should improve in order to get better quality of the product.

During the survey it has been observed that the purchasing decision are mostly guided

by the availability of the product. So the company has to make optimum use of its

present distribution system to make the product available through agents and retailer

outlets throughout the day, if possible.

With a view of motivating employees and agents, it is recommended that the company

provide bonus, retirement benefits and reward respectively for doing their job better.

Company should increase “Nandini Milk Products” parlor at different places of city.

As demand is more at Matikere , Mekri circle and Rajajinagar they have to give

special importance to these areas.

It has been observed that sometimes retailers suggest the consumer for buying the

particular brand because they get higher commission as compared to other brands.

78

So, it is recommended to the company that should think for giving attractive

commission to the retailers if possible, otherwise company could give some reward if

they achieve more targets.

CONCLUSION:

From the above findings we can conclude that Nandini is doing better in marketing

of the milk and milk products by keeping into consideration the aspects like price,

quality, availability but it is somewhat lacking in its promotional activities as per the

survey conducted to the retailers with regard to their perception towards Nandini

milk products in Bangalore City North . It is competing with other brands by

acquiring a greater market share so it is necessary to take the steps with regard to

promotional activities to both the retailers and consumers to build its brand name

and acquire a greater market share.

79

QUESTIONNAIRE (CONSUMERS)

I, Ms keerthi.m.s, BBM Student of “NEW HORIZON COLLEGE MARATHALLI”,

conducting study to evaluate “MARKETING STRATEGY TOWARDS NANDINI

MILK PRODUCTS” at BAMUL,

I request you to kindly spare few minutes of your schedule to answer the following

questions

1. Name: …………………………………………

2. Address: ……………………………………………………

……………………………………………………………………

3. Age:

a) 15-20 ( ) c) 31 -40( )

b) 21-30 ( ) d) <40( )

4. Occupation: ……………………………………………

a)Housewife ( ) b)Businessman ( )

c)Employed ( ) d)Un Employed ( )

5. How did you come to know about Nandini milk products.

a) Advertisement ( ) c) Companies Promotional Schemes ( )

b) Recommended by Family and friends( ) d) Others ( )

6. What do you perceive about the quality of the Nandini Milk products.

a)Excellent ( ) c)Satisfactory( )

b)Very ( ) d) Good Poor( )

7. What do you think about the pricing policy of the Nandini Milk products

a) Expensive ( ) c) Reasonable ( )

b) Moderate ( ) d) Cheap ( )

8. What do you feel about the packaging of the Nandini Milk products.

80

a)Excellent ( ) c) Average( )

b) Good ( ) d) Bad ( )

9. Which other brand do you prefer.

a) Heritage ( ) c) Dodla( )

b) Amul ( ) d) Nilgiris( )

10. What do you feel about the taste of the Nandini milk Products

a) Excellent ( ) c) Moderate( )

b) Good ( ) d) Bad( )

11. How do you find the packing of Nandini milk products

a) Attractive( )

b) Not Attractive( )

12. How much satisfied are u with Nandini milk products

a) Very Satisfied( ) c)Fairly Satisfied ( )

b) Satisfied ( ) d) Not Satisfied( )

13. Have you encountered any problem or complaints

a) Yes( )

b) No( )

If Yes nature of complaint……………………………………….

14. Has the complaint been attended successfully

a) Yes( )

b) No( )

15. Any other suggestions towards the Nandini milk Products.

DATE: SIGNATURE

PLACE:

81

QUESTIONNAIRE

FOR THE RETAILER

1. Name: …………………………………………

2. Address: ……………………………………………………

……………………………………………………………………

3. Since how long are you dealing with Nandini milk products.

a) Less than 1 year ( ) c)2-3 years ( )

b) 1-2 years ( ) d) More than 3 years (

)

4.What is opinion on the margin of commission given for Nandini milk products.

a) Very Satisfied( ) c)Fairly satisfied ( )

b) Satisfied ( ) d) Not satisfied ( )

5. Do you find seasonal variations in demand for Nandini milk Products.

a) Yes ( )

b) No ( )

6. Are the products supplied effiently throughout the year

a) Yes ( )

b) No ( )

7. What is your opinion on Nandini milk products

a) Very good ( ) c) Bad ( )

b) Average ( )

8. Are suppliers as per schedule.

a) Yes ( )

b) No ( )

9. What is your mode of payment.

a) Cash ( )

b) Credit ( )

10. If you get bulk orders will you get immediate supply.

a) Yes ( )

b) No ( )

11. Do you come across any damaged goods.

a) Yes ( )

82

b) No ( )

12. Does consumers complain about the product.

a) Yes ( )

b) No ( )

If yes what kind of

complaints……………………………………………………………………………………..

14. Does the executive visit often.

a) Very often ( ) c) Never ( )

b) Often ( )

15. Opinion on the promotional strategies of Nandini.

a) Very Good ( ) c) Bad ( )

b) Average ( )

16. How do you rate the displays and POP of BAMUL

a) Excellent ( ) c) Average( )

b) Good( )

17. What are your suggestion for the success of Nandini milk products

…………………………………………………………………………………………………

…………………………………

…………………………………………………………………………….…………

DATE;

PLACE;

SIGNATURE

83

BIBLOGRAPHY

TEXTBOOKS:

Author Title Edition Year

J C Gandhi Marketing 11th

1998

S A Shrelekar Essential of 04th

1998

Marketing

Philip Kotler Marketing 09th

1999

Management

C.N. Sontakki Marketing 01st 1999

Management

Interviews : Direct contact

Company library : BAMUL(NANDINI)

Websites : WWW.KMFNANDINI.COOP

: WWW.GOOGLE.COM