Internship Report On

“A STUDY ON CUSTOMER BRAND LOYALTY ON BAMUL PRODUCTS”

BY

MOHAN P

1NH14MBA82

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

DR. SHEELAN MISRA MR.SRIKANTH

HOD Department Of Management Studies Marketing Department

New Horizon College Of Engineering Bamul Bangalore

Department Of Management Studies

NEW HORIZON COLLEGE OF ENGINEERING

OUTER RING ROAD, MARATHALLI, BANGALORE

2015-2016

ACKNOWLEDGEMENT

With great enthusiasm and pleasure I am bringing out this project report here. I am really

grateful to certain immensely helpful individuals who have put out their entire self to accomplish

what I have gained in the form of this project. I use this opportunity to express heartiest gratitude

for the support and guidance offered to me from various sources during the course of completion

of my project.

I would like to thankDr.MOHAN MANGHNANI chairman,

NEW HORIZON COLLEGE OF ENGINEERING for giving me a golden opportunity to

carry in this esteemed institution.

I am extremely grateful to my principal Dr.MANJUNATHA for providing the necessary

facilities. I acknowledge my sincere gratitude toDr.SHEELAN MISRA (HOD) Department of

management studies for guiding us to do this work for our academic growth and development

and for her valuable time for showing me the way through her expert guidance, to present this

project as per schedule.

I extend my sincere gratitude to Mr. SRIKANTH, BAMUL, for giving me the time and

information needed for making this assignment success.

This leaf of acknowledgement would not be complete without a special word of thanks to all the

other faculty members and my well-wisher’s whose moral support, encouragement and love have

enabled me to successfully bring out this project. Above all I am thankful to ALMIGHTY GOD

whose grace and blessing made everything possible.

MOHAN P

(1NH14MBA82)

TABLE OF CONTENTS

SL.NO. Contents PAGE.NO

1 Introduction About Internship 1

1.1 Introduction Of Internship 1

1.2 Project Title 1

1.3 Statement Of The Problem 1

1.4 Objectives Of The Study 2

1.5 Scope Of The Study 2

1.6 Limitations Of The Study 3

1.7 Research Methodology 3

1.8 Bases Of Data 4

1.9 Tools Used 4

1.10 Review Of Literature 5

2 Industry And Company Profile 6

2.1 Industry Profile 6

2.2 Company Profile 9

2.3 Objectives 9

2.4 Mission 9

2.5 Organization Status 10

2.6 Milk Procurement 11

2.7 Products 12

2.8 Marketing Department 17

2.9 SWOT Analysis 21

2.10 Infrastructure Development 23

2.11 Financial Statements 24

2.12 New Projects 25

3 Theoretical Part Of The Study 26

3.1 Marketing Management 26

3.2 Marketing Channels 26

3.3 Marketing Mix 27

3.4 Brand Loyalty 27

3.5 Brand Management 28

3.6 Brand Attributes 28

4 Data Analysis And Interpretation 31

4.1 Analysis And Interpretation Of Balance Sheet 31-49

5 Findings, Suggestions And Conclusion 50-55

5.1 Findings 50

5.2 Suggestions 53

5.3 Conclusion 55

Annexure

Bibliography

LIST OF TABLES

TABLE NO PARTICULARS PAGE NO

4.1 TABLE SHOWING CROSS TABULATION: AGE AND

PRODUCT PREFERENCE

31

4.2 TABLE SHOWING CROSS TABULATION OF AGE VS.

SATISFACTION LEVEL

32

4.3 TABLE SHOWING CUSTOMERS WHO PURCHASE NANDINI

MILK PRODUCTS:

33

4.4 TABLE SHOWING CUSTOMERS MOST PREFERRED

PRODUCT FROM NANDINI BRAND:

34

4.5 TABLE SHOWING CUSTOMERS WHO ARE BRAND LOYAL

FOR NANDINI MILK AND MILK PRODUCTS

35

4.6 TABLE SHOWING SOURCE OF INFORMATION ABOUT THE

BRAND:

36

4.7 TABLE SHOWING CUSTOMERS WHO ARE AWARE OF

NANDINI MILK PARLOR

37

4.8 TABLE SHOWING CUSTOMERS WHO HAVE VISITED

NANDINI MILK PARLOR

38

4.9 TABLE SHOWING FACTORS THAT HELP CUSTOMERS TO

STAY LOYAL TO THE BRAND

39

4.10 TABLE SHOWING PRICE OF THE PRODUCTS

40

4.11 TABLE SHOWING CUSTOMERS SATISFACTION LEVEL

FROM THE PRODUCTS

41

4.12 TABLE SHOWING RATING FOR THE PACKAGING AND

PRODUCT INFORMATION

42

4.13 TABLE SHOWING AVAILABILITY OF NANDINI MILK

PRODUCTS

43

4.14

TABLE SHOWING RESPONDENTS WHO WOULD

RECOMMEND NANDINI MILK PRODUCTS TO OTHERS

44

4.15 TABLE SHOWING PRICE SENSITIVE CUSTOMERS

45

4.16 TABLE SHOWING PERIOD OF USAGE OF NANDINI MILK

PRODUCTS?

46

4.17 TABLE SHOWING CUSTOMERS WHO TRUST NANDINI

MILK PRODUCTS?

47

4.18 TABLE SHOWING CUSTOMERS WHO INTEND TO BUY

NANDINI PRODUCTS IN FUTURE,

48

4.19 TABLE SHOWING CUSTOMERS WHO CONSIDER NANDINI

AS THEIR FIRST PREFERRED BRAND

49

LIST OF GRAPHS

GRAPH NO PARTICULARS PAGE NO

4.1 GRAPH SHOWING CUSTOMERS WHO PURCHASE NANDINI

MILK PRODUCTS:

33

4.2 GRAPH SHOWING CUSTOMERS MOST PREFERRED

PRODUCT FROM NANDINI BRAND:

34

4.3 GRAPH SHOWING CUSTOMERS WHO ARE BRAND LOYAL

FOR NANDINI MILK AND MILK PRODUCTS

35

4.4 GRAPH SHOWING SOURCE OF INFORMATION ABOUT THE

BRAND:

36

4.5 GRAPH SHOWING CUSTOMERS WHO ARE AWARE OF

NANDINI MILK PARLOR

37

4.6 GRAPH SHOWING CUSTOMERS WHO HAVE VISITED

NANDINI MILK PARLOR

38

4.7 GRAPH SHOWING FACTORS THAT HELP CUSTOMERS TO

STAY LOYAL TO THE BRAND

39

4.8 GRAPH SHOWING PRICE OF THE PRODUCTS

40

4.9 GRAPH SHOWING CUSTOMERS SATISFACTION LEVEL

FROM THE PRODUCTS

41

4.10 GRAPH SHOWING RATING FOR THE PACKAGING

ANDPRODUCT INFORMATION

42

4.11 GRAPH SHOWING AVAILABILITY OF NANDINI MILK

PRODUCTS

43

4.12 GRAPH SHOWING RESPONDENTS WHO WOULD

RECOMMEND NANDINI MILK PRODUCTS TO OTHERS

44

4.13 GRAPH SHOWING PRICE SENSITIVE CUSTOMERS

45

4.14 GRAPH SHOWING PERIOD OF USAGE OF NANDINI MILK

PRODUCTS?

46

4.15 GRAPH SHOWING CUSTOMERS WHO TRUST NANDINI

MILK PRODUCTS?

47

4.16 GRAPH SHOWING CUSTOMERS WHO INTEND TO BUY

NANDINI PRODUCTS IN FUTURE,

48

4.17 GRAPH SHOWING CUSTOMERS WHO CONSIDER NANDINI

AS THEIR FIRST PREFERRED BRAND

49

EXECUTIVE SUMMARY

The project was undertaken at Bangalore Milk Union (BAMUL), Karnataka has 13 milk union in

the state, Bangalore milk union is one among this 13 unions, the union acts as a middle men

between the dairy co-operative society member and to the Karnataka milk federation, were the

milk procurement, production, processing and marketing are undertaken, the unit was established

in 1975. The study was done to understand the level of customer satisfaction, loyalty and

perception towards the brand.

Descriptive research methodology was used as an objective to understand the loyal customers of

the organization. Convenient sampling was used, it was not possible to do a simple random

sampling with the given time constrain. The primary data was collected- through Questionnaires

addressed to 150 respondents. The secondary data was obtained from the company‟s website,

internal reports and broachers.

The major findings of the study was that the company has got good market position for their

major products. Most of the customers were loyal for the brand.

The major recommendations for the company would be, the junction faces a lot of competition

from the private brand so it must formulate sound strategy to overcome the competitive market.

In order to retain its market share and growth potential, the union needs continuous development

of new products and its product line. Retailer‟s sales margin should be increased to motivate

them to push the products.

CHAPTER-1

INTRODUCTION

1.1: INTRODUCTION ABOUT THE INTERNSHIP

Internship is a kind of on-the-job preparation for the professional careers. Internship is

similar to an apprenticeship program for the trade and vocational jobs. This can be undertaken by

the university or the college students or post graduate students or even by the high school

students. This internship is carried on a specific duration may be ten to twelve weeks or for the

period mentioned by the institution. This program may be a paid one or an unpaid one; it

depends on the organisation, on the bases of the type of job that is assigned for the students. The

internship is carried to apply the theoretical knowledge into an action or to gain knowledge of the

industry and work experience in the organization.

Some internship also creates a permanent career with paid employment in an organisation

were the student have done his/her internship. This could be a significant benefit for the students

to gain the organisation knowledge, skills and abilities so, if the student joins the same

organisation were he/she had done the internship than it will be easy for the students as well as

the organisation were only a less training is needed.

1.2: TITLE OF THE STUDY

“A STUDY ON CUSTOMER BRAND LOYALTY” AT BANGALORE MILK UNION

LIMITED [BAMUL] KARNATAKA.

1.3: STATEMENT OF THE PROBLEM

Milk is one of the basic needs for the entire individual all over the world. In India the

supply of Milk to the consumer is being through the unorganized and unskilled milkmen. After

the revolution of the co-operative milk unions in India, the milk India is seen in the packaged and

processed Milk and Milk products. From the past many years the co-operative milk unions

enjoyed monopoly in the market. But after the entry of private sector in the industry the

competition has increased to highest level. Each of the unions in the competitive market has

many ranges and verity of milk and the milk products under different brands. And all the unions

wishes that their brand of products need be on the top of the minds of the customer.

With the increase in the competition, BAMUL was not able to raise the market share of

its Nandini branded Milk and Milk products. And the union thinks that the lacking brand loyalty

of customers may be touching its sale and the profits. In order to add or increase the consumer

brand loyalty the company started many promotional activities through various channels and

now the company wants to know its loyal customers who always prefer their brand.

So, the key goal of this study is to recognize the loyal customers of Nandini Milk and

Milk Products, in Bangalore area.

1.4: OBJECTIVES OF THE STUDY

To examine the factors influencing purchase decision towards Nandini Milk

Products.

To understand the consumer perception towards Nandini Milk and Milk

Products.

To study the consumer expectation towards Nandini Milk Products.

To analyse the satisfaction level of the Nandini Milk Products customers.

To examine the brand loyalty of Nandini Milk Products at BAMUL.

To find out the fast moving product of Nandini Milk Products

1.5: SCOPE OF THE STUDY

At present lots of brands milk products are offered in the marketplace. However the

consumers wish a specific brand which is much affordable and available to them. In the up-to-

date commercial world, due to the growth of science and the technology, countless new brands

have been familiarized in the market every year. Actions of brand liking/preference attempt to

calculate the effect of marketing actions in the hearts and minds of potential consumers. More

the brand preference is usually shows the company‟s financial performance and the position of

the company. The study aims to understand the consumers brand loyalty and preference towards

Nandini Milk and Milk Products from the respondents in Bangalore area.

1.6: LIMITS OF THE STUDY

1. This study is confined to only BAMUL, Bangalore.

2. Due to time and resource constraints, consumers only from selected areas in Bangalore

were selected.

3. The concept of Brand Loyalty is done on the assumptions that the feedback given by the

customers are true and accurate.

4. The study is limited to information provided by the company and the feedback given by

the customers.

1.7: RESEARCH METHODOLOGY

Type of Research

The research design for this study took the form of descriptive survey research. Data were

gathered from selected customers with aid of structured questionnaire and was analysed.

SAMPLING METHODOLOGY

Realising the difficulty inherent in studying the entire population, a representative sample of the

population was used for the study. As the population size of this study comprised of users of

Nandini Milk Products in Bangalore which however, become inaccessible. The study therefore,

applied the SIMPLE RANDOM SAMPLING method. Questionnaires were provided to

customers at Bangalore on their convenience.

SAMPLING SIZE

The total number of respondents will amounts to 150 at Bangalore.

1.8: BASES OF DATA

For determination of the study, major and minor data remained main data source. Major data was

obtained with the help of designed questionnaire which were administered to users of the

Nandini Milk Products (consumers). Minor data were collected from text books, journals. Major

data collected included information on level of customer satisfaction, brand price, product

quality etc. And on the socio-economic background of respondents such as age, sex, location,

income level etc.

METHODS FOR DATA COLLECTION

The methodologies adapted to achieve is the objective of collecting information from different

sources. There are two types of collection, they are

1. Major (Primary) data

2. Minor (Secondary) data

Major data:

Primary data of research will be collected through interaction, discussions

with consumers and also by giving questionnaire. This gives the latest information

from the buyers (customers). Primary data is one which is composed from the

original source.

Minor data :

Minor or the secondary data is the data which is collected from various

articles, internet reference books, published materials such as periodicals and

marketing journals, general business and trade magazines etc. This type of data

will also include the past information and the history.

1.9: TOOLS USED FOR THE DATA ANALYSIS.

SPSS

EXCELL

1.10: REVIEW OF LITERATURE:

The knowledge of the concept brand loyalty was clearly explained and discussed in the olden

marketing literature, which had two different dimensions of the concept; behavioural and

attitudinal loyalty. In 1992 Oliver presented an abstract for brand loyalty which involved the

hierarchy of the effects of the model and actions. The detail knowledge of the integrating this

multidimensional model was set by Oliver in the year 1999, as the deep commitment that shows

the re-buy of the preferred products continually in the future, hence influencing the buying

behaviour of the same brand even though the marketing efforts has the possibility to change the

behaviour of the customer.

According to GOUNARIS and STATHAKOPOULOS (2012) there are four types of loyalty on

the basis of purchase, social effect and emotional devotion to the brand;

No Loyalty: they are those who do not purchase and while they have no interest in the brand and

social effects failed to orient to the brand.

Covetous Loyalty: they do not purchase but emotional tie to the brand is high and this tie was

created by the social environment.

Inertia Loyalty: they have a tendency towards the brand for habit, convenience or any other

reason without emotional tie with the brand and social effect. The customers having this nature

of loyalty can make a systematic selection among other brands but while this selection has low

level of emotional involvement and personal investment there is no devotional to the brand.

Premium Loyalty: if the emotional tie and social effect is high while the customer purchases at

high level it is loyalty.

Even though the wide research showed that the highly loyal customers feel not to change

their attitude and the behaviour towards the particular brand. In addition to this the possibilities

to change the ordinary buyer into a loyal customer is very much difficult if the buyer has a

favourable attitude towards a particular brand. The attitudinal customer loyalty is when the buyer

always purchase the same brand products even though the price of the product is increasing , for

instance when a person decreases to buy different brand products when his favourite brand is not

available .

CHAPTER-2

INDUSTRY & COMPANY PROFILE

2.1 INDUSTRY PROFIL

As India is an agriculture country, a large number of Indian populations is depended on

agriculture. When agriculture is the one of the main occupation of the Indian population, it

requires the farming animals to help them in the agriculture process. So, as there is an high

increase in the agriculture, there is an high dependents on the cows and other milk animals in the

country. When there is an increase agriculture sectors, there is an increase in the dairy activities

too.

As there is a high growth rate in the dairy activities, a large number of the modern milk

products were produced in the country. In the past independence there were only few

unorganised dairy sectors in the country. As days went on slowly there was an increase in the

milk products development. This led to the development of the organised dairy sectors.

Later the International Dairy Industry credited INDIA as the globe‟s major milk

manufacturer country. This is the reason for the recognition of INDIA as a dairy giant by the

United Nations food and agriculture organization (FAO)

Now INDIA has become the world‟s largest and number one milk producer country in

the world. The annual growth rate of milk production has been increased comparatively by the

past 30 years, increasing from 21 million tons in 1968 to an anticipated 80 million tons in 2001.

This high increase and using advance technology in producing milk products is only because of

the involvement of the dairy co-operatives, under the European Union, World Bank and WFP

(world food program). This has helped the country to reduce the poverty level as it was

generating the employment opportunity for a large number of rural populations in the country.

Many industries are largely depended on the milk as its raw material, but it is not possible

to store for a couple of days as it is one of the perishable good. So it was directly sold to the

companies by the farmers at a lower rate. Now the dairy industry has given a major importance

in the county.

The dairy industry has successful in providing job opportunity in the field of production and the

maintenances of the dairy products (milk products).

Producing and offering to the final customers of the milk and the milk products

requires a lot of employees. The sales and marketing process have given

employment opportunity for a large population in the country.

The dairy scientist ; for taking care of high yielding cows and collecting milk

without any bacteria the dairy scientists are required. The research have

undertaken in the field of milk to improve the quality of the milk and ensuring a

good health.

Dairy technologists are also required in the present situation, the procurement

officers who takes the responsibility of collecting milk from milk booth, farmers

and cattle rears. This process should be done in a proper manner with the help of

latest technology that is applicable in maintaining the quality of the milk in the

process of transporting it to the various locations where it is required.

Many other employees are required in the dairy industry to run an effective and

efficient union.

However the counters main dairy industry aims for the effective and efficient management of the

natural resource for the production of the milk and improve the milk processing and handling

with the involvement of the latest technologies.

Bamul at Glance An ISO-22000:2005 & ISO-9001:2000 Certified

Procurement & Input

Inhabited Villages 2388

Milk Producer Members 3,45,479

Dairy Co-operative Societies 2028

Milk Procurement Routes + BMC Routes 128+32

Artificial Insemination Centers Single 250

Cluster 131

Processing Plants Capacity/Day (In Lakhs) Procurement/Day

(In Lakhs )

Bangalore Dairy 6.00 14.67

Anekal Chilling Center .60 .95

Byrapatna Chilling Center .60 1.75

Doddaballapura Chilling Center .60 1.41

Hosakote Chilling Center 1.50 1.86

Solur Chilling Center .60 1.87

Vijayapura Chilling Center 1.00 1.46

Kanakapura Chilling Center .60 1.60

Bulk Milk Coolers 3.50 3.77

Marketing & Sales

Number of Distribution Routes 214

Retailers 1756

Whole Sale Dealers -

Franchisee Outlets 81

Milk Parlors 34

Transporter Cum Distributor -

Finance 2014-15

Total Share Capital (Rs in Lakhs) 3877.17

Annual Turnover (2014-15) (Rs in Lakhs) 139996

Net Profit (2014-15) (Rs in Lakhs) 748.61

2.2: INTRODUCTION:

In the year 1975 the Bangalore Milk Union Ltd, was founded under the operation called the

„operation flood II‟ it also assumed the brand „AMUL‟ as its role model. At the current bamul

has the Bangalore urban, rural and even the district known as rammanagara in Karnataka as its

boundary to produce the milk and milk products and also selling it all over the state. However

the union is trying to develop further and to increase its marketing all over the state.

Bangalore milk union has been certified under MMPO by Central Registration Authority.

Currently, the Bangalore milk union is now one of the major Milk Co-operative Union in

Southern India. The union have also been certified for ISO 22000:2005 & ISO 9001-2000 for

quality management and Food Safety Systems

In recognition to the efforts and for its achievement, the National Productivity Council

(NPC) of Government of India has conferred as “Best Productivity Award” 5 times and

“Energy conservation Award” by the Bureau of Energy Efficiency (BEE) to the Union.

2.3: OBJECTIVES:

To maintain and to look after the milk unions and the dairy centres at the rural

(village) and to ensure the effective distribution information of the marketing, clean

milk production through proper methods etc.

To offer guaranteed market and also to take care of the price for the products that are

produced by the people in the rural areas within the union co-operative societies.

To help the rural people with the modern technology like manual insemination,

proper distribution of the seed materials for a good production of the milk products.

To help rural growth by offering and motivating for the self-employment in the rural

areas, so as to avoid the relocation to the urban areas and helping for a balance

income to meet their day to day activities.

To deliver quality Milk and milk products to urban shoppers at reasonable prices.

2.4: BAMUL’S MISSION

“Ushering rural prosperity in the lives of member milk products”

2.5: ORGANISATION STATUS:

The member producers and their Dairy Co-operative Societies (DCS) are the vital

constituents of the Union and their progress is the judging yardstick on the efficiency of the

Union‟s operation. Hence the maximum importance has been given to their development. The

Union is making intensive efforts over the years to organize DCSs in more and more villages of

the three districts in the milk-shed area.

Importance has been given to enrol more and more milk producers at village level as

members of these DCS‟s. While enrolling these members, more importance has being accorded

to enrol more number of women members and to create more women managed DCSs under

STEP (Support to Training and Employment Program for Women). It is heartening to note that

there is an active participation of women and weaker sections of the society in all the dairy

development activities of the Union in the state. They have become mainstay of all the

developmental programs of the Union. This has resulted in the uplifting the economic benefits to

the most vulnerable sections of the rural mass.

2010-112011-12

2012-132013-14

2014-152015-16

331544 340307 337419 340448 344176 345479

105804 109834 110357 111894 118193 118916

Total Membership & Women Membership at DCS

2.6: MILK PROCUREMENT

The Milk produced by 108051 farmers at village level will be collected every day

morning and Evening at DCS. Under Clean Milk Production programme, to maintain the

freshness & quality of the milk 178 Bulk Milk Coolers covering 498 DCS of Total Capacity

3,30,000 Lts were installed in DCS level. During the year 2014-2015 the Unions daily average

milk procurement is 12.66 Lakh Kgs, which works out to be 630 kilo grams per day per

DCS. The milk procurement has increased by 3.00 % when compared to the previous year.

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 14.14

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

AVG. Milk PROCUREMENT PERDAY

8.29 8.87 9.44 10.48

11.45 12.66

14.14

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

*Till Aug'15

Bangalore Milk Union is giving the opportunity for the most remunerative milk production price

for its members who are manufacturing the milk products. The effective on-going process of the

union represents on the prices paid for the member manufacturers. The normal milk procurement

price given during the year 2015-2016 is nearly rupees 23 for every kilograms of the milk

supplied to the union.

The milk collected from different areas will be transported to the chilling centres by travelling

around 20,685 kilo meters every day. The union have been constructing 32 bulk milk coolers

which collects the milk from 179 centres are being transported to the union through the trucks.

2.7: PRODUCTS

NANDINI TONED MILK:

Karnataka‟s highest retailing and most favourite milk.3%

fat and 8.5% SNF content make this milk as the best

choice for all the purposes.

This product is offered in 250 ml, 500 ml and 1 litre

pouches across Karnataka.

Homogenized variant also available5 litre and 6 litre

pouches available in selected markets.

NANDINI HOMOGENISED MILK:

Badam, Pista, Elachi and Banana. Sterilised flavoured

milks with amusing creamy feel and great taste.

Specially chosen by the young generation.

Available in 200 ml take – away bottles.

FULL CREAM MILK:

The Fresh Full Cream Milk accessible in the brand

name "Nandini" is gorgeous creamier and tastier milk

that encompasses 6% Fat and 9 % SNF. The Full Cream

Milk is fit for cooking domestic sweets and savouries

and available with 500 ml and 1 litre packs in the state.

CURD:

Fresh curd that tastes just like traditional home-based

curd. It can be consumed directly or in mixture with

cooked rice or added as an ingredient in certain dishes,

especially in south India. This product is accessible in

200g and 500 g pouches.

BUTTER:

Made from fresh pasteurized cream for delectable

taste, smooth texture and butter some delight. Tasty

enough to relish in a variety of ways. This product

is accessible in both salted and un salted.

Accessible in 100gm, 200gm, and 500 g slabs.

GHEE:

Nandini‟ ghee is produced from clean and

unpolluted butter. It has a delicious flavour as it is

fresh and pure. Hygienically factory-made and

packed and protected with the special pack to

preserve the goodness of pure ghee. It has the

shelf life of 6 months at ambient temperature. This

product is known for its quality.

This is accessible in 200ml, 500ml, 1-liter sachets,

5-liter tins and 15kg tins.

PEDA

Mouth-watering peda(sweet)made from pure

creamy milk. One bite is enough to fill the heart

with its creamy milk flavour. Nandini Peda is a

lovely luxury for the household. Stock at room

hotness nearly 7 days. This product is accessible in

25 g, 50 g sachets and 100 g, 250 g pack.

MASALA BUTTERMILK:

Fresh butter milk blended with quality spices to

give that enlivening spicy tang of traditional spiced

and home-based butter milk. This drink

recommended after meals, for easy digestion.

Masala buttermilk is factory-made with huge

quantity and traded in the summer season,

especially form month of March to July were the

earth receives the maximum temperature from sun,

the only period during which it gets demand.

Accessible in 200 ml Tetra Brik packs and 200 ml

pouches.

MILK POWDER:

Dissolve just 3½ tablespoons full in 180 ml of

lukewarm water and your glass of delicious

sweetened milk will be instantly ready. Processed

with ultra-modern „spray drying‟ technology that

makes the whitener completely miscible in hot or

lukewarm water, leaving no lumps behind and

healthy in nature.

Available in 25 g, 50 g. tear-away sachets, 200 g,

500 g, 1 kg metalized aluminium bowed

laminated film pouches, 10 kg HDPE containers

and 25 kg craft paper bags with poly liner.

ICE CREAMS:

Creamy delicacy to excite the most joyous

moments. Nandini ice-creams are available in

different flavours and taste.

Available in 100 ml cups and 500 ml, 1250 ml,

5000 ml family packs.

ULTRA HIGH-TEMPERATURE HEAT-TREATED MILK:

It refers to ultra-high temperature heat-treated Milk. The concept of UHT milk is absolute i.e.

bacteria free besides retaining the nutritional quality of the milk. During the course, milk is

exposed to a temperature of 137ºc for 4 sec and it is directly cooled at a room temperature

packing it aseptically.

At present two types of UHT Milk are being produced one “Nandini Good Life” with 3.6%

fat and 8.5% SNF and another one is “Nandini Smart” with 1.5% fat and 9% SNF. Nandini

Smart being low fat products good for health conscious people. Both the milks can be stored for

at least 90 days at room temperature. It needs no boiling before drinking on an average 25,000

of both the Milk is being sold per day.

Constituters Fat Minerals Proteins Lactose Water Total Solids

Nandini

Good Life 3.6% 3.5% 10.7% 4.3% 87.5% 12.1%

Nandini

Smart 1.5% 3.95% 0.75% 4.3% 89.5% 10.5%

It also includes “GOOD LIFE SLIM” Skimmed milk is 99.5% fat free. Cow‟s pure milk,

standardised, skimmed, UHT processed milk, microorganisms free in a tamper proof tetra-fine

pack which keeps this milk fresh for 60 days without chilling until opened , recommended for

women‟s specially. It‟s available in 500ml pack.

2.8: MARKETING DEPARTMENT

Marketing management is the analysis, planning, implementing and controlling of

programs designed to bring about desired exchange of goods and money with target market

needs and desires and using effective promotional activities to improve the sales and attain the

desired profit.

MILK AND MILK PRODUCTS MARKETING

BAMUL markets the following types of milk and milk products:

Toned milk

Homogenized Toned milk

Full Cream milk

Nandini Good life

Nandini Full Cream milk

Nandini Smart

Nandini Slim

Curds

Peda

Sweetened Lassie and Sweetened Curds

Flavoured Milk

Spiced Butter Milk

Goals of Marketing Department

To deliver maximum level of satisfaction to the end users.

Generate market awareness and preference for Nandini milk and Milk products.

Customer retaining.

Equilibrium the demand and supply of milk and milk products throughout the year.

Organize and improve the market share of Nandini excellently and professionally.

Preparing sales budget.

Communicating strategies to compete with its competitors.

Continuously ensures that the position of Nandini as the market leader in milk and milk

products.

Functions:-

1. To gain the markets share.

2. To accumulate the required information about the revenue.

3. Preserving sales and other required accounts of the organization.

4. To face the competition in the market.

Chief competitors:-

The chief competitors of BAMUL dairy are the loose milk vendors, but there are the extra milk

brands which compete with NANDIN are

Heritage

Jerky

Arogy

Doodla

Tirumala

These Private brands are encouraging their products through major advertising channels,

more retail margins, false information etc.

Marketing Strategies implemented by BAMUL

“Procure more, Produce more, Sell more, and earn more” is the BAMUL’s vision.

By obtaining and producing more and more BAMUL attains economies of scale which

results in least cost supply on each unit sold by to the customers.

As per the demand for milk and milk products accessible throughout the day, 26 numbers

of Franchise Outlets, 19nos of parlours are made functional approximately.

For the retailers who were not in a position to install chest coolers insulated boxes

numbering around 900 were distributed on time during the said period. Milk and milk

product were preserved and stored in the insulated boxes and sold.

Around 40 numbers of 400 litres capacity chest coolers under the cold chain development

program has been distributed in the required areas.

Promotional Activities

Door to door campaigning: - This is completed through the sales force team by

inquiring the consumers, reasoning them, issuing brochures etc. This is carried on

periodically to improve the sales and brand awareness of the public.

Organizing meeting: - Organizing meetings is chief public places and inviting chief

period like doctor, professional, government officers etc. to attract the NON-

CUSTOMERS in the state.

Visit to Non-Govt. Organizations: - Visiting to NGOs and forming awareness about the

product and also providing free samples. Its benefits, inviting them to the plant and

viewing them the production processes of Milk and Milk Products.

Visit of school children to the dairy and stimulating their products through them by

issuing samples and explaining the quality and safety of the products produced at

BAMUL.

Inviting the consumer forum and trying to create awareness to them.

Participating in trade shows, exhibitions and educating people about the quality of the

products.

Through advertising in major media‟s like T.V., News Papers, hoardings with the famous

personalities etc…*

It seals its product under the brand name “NANDINI”

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

Avg. Milk Sales in

Lakhs6.68 6.97 7.56 7.85 7.94 8.21

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

AVG. Milk SALES PERDAY

6.68 6.97 7.56 7.85 7.94 8.21

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

2.9: SWOT ANALYSIS

SWOT Analysis discourses to analysis of “Strength, Weakness, Opportunities,

and Threats”, possessed and tackled by an Union (BAMUL)

Strengths of BAMUL: -

a) Strong customer base:

BAMUL enjoys a very strong “customer base” in their local as well as in the urban

(domestic) market. Products produced by BAMUL are known for their quality, quality

perception of customers regarding BAMUL‟s products has produced them a large

number of loyal customers as well as a very strong customer base. They have captured

almost 70% of the market share in the domestic market.

b) Strong supplier base:

Its early inception BAMUL has delivered it an opportunity to build up a very strong

“supplier base”, since there were not various organized major players in the local

market.

BAMUL is playing a vital role in the state by covering 2611 villages of Bangalore

District for their dairy activities as well as for the marketing activity.

The total members for various societies are around 3, 16,400. It has nearly 1548 societies

for their procurement purpose. In these almost 90% of societies are running under profit

among these above societies in the state.

c) Competitive Product line:

The Milk and the Milk Products offered by BAMUL are only one of its kinds in the

domestic market; its competitors have only a few substitutes to offer in terms of variants

and quality of products.

Product line of BAMUL consists of

Purified liquid milk

Peda

Kova

Curds

Butter and butter milk

Masala butter milk

Ghee

d) Automated Production:

BAMUL has emerged with the automated production process; it helps them to drastically

reduce the cost of production per unit due to High-end technology production process and

reduced Human Resource in the production process.

Weakness of BAMUL:

The only weakness suffered by BAMUL is lack of professionals in its organization and in

management process. BAMUL have not been trained their employees professionally in core

management areas such as “Marketing, Human Resource, Finance, etc.”, to provide a

competitive edge to the organization.

Opportunities for BAMUL:

BAMUL can explore into the other avenues of Dairy farming that is Honey Culture,

since it already has a strong supplier base. It can train their suppliers in “Honey culturing”, and

it can market its new product “Honey” under its own brand name “Nandini”, since it has its own

value and loyal customer. In the local market the accessibility of Honey is not much operative.

At present Honey is providing by Companies such as “Dauber”, so Nandni could be made

accessible at a cheaper rate owing to lesser Cost of Production and receive its own loyal

customers in the marketplace. Foremost market share could be acquired since Nandini, the brand

name is well known in the local market as well as in the entire state (Karnataka).

Threats faced by BAMUL:

The only threat is that the Competitors of BAMUL have started to access attract the

supplier base of BAMUL by offering more prices and have been effective in luring some of the

farmers in to give the milk, it is the one threat faced by BAMUL.

2.10: INFRASTRUCTURE DEVELOPMENT:

The main aim and policy of the Bangalore Milk Union is to “Procure More, Sell More &

Serve More” and reaping the advantages of the economies of scale.

Hence to achieve their aim and to follow this policy, the union have executed the below

plans and projects in order to produce more and more milk and to process them. The plan will

help the union to provide their producer members by giving them the maximum

advantage/benefit. The union is continuously adopting the growth-oriented policy and strategy to

assisting their producer to grow-up in the market.

The Mega Dairy is capable of

processing nearly 6 lakh liters of

milk every day and it is also

expandable upto 10 lakh liters,

which was established by

obtaining term loan from NDDB

(National Dairy Development

Board). It is one of the largest

and more advanced technologies

that facilitates in milk processing

and produce the best quality of

milk and milk products.

Even though BAMUL sets its quality (standards) for its products to offer their customers, it was

bit not capable to maintain the quality (standard) due to the weak manpower force. But after the

establishment of the Mega Dairy, BAMUL stabilized and converted into fully automated system

which helps them to maintain the best quality for its products. The resources like human resource

and the energy was also optimized effectively and controlled through this Mega Dairy.

2.11: FINANCE:

1278.94 1487.17 1728.02 1813.37

2494.51

3844.17

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

0

1000

2000

3000

4000

5000Share Capital (in Lakh Rupees)

56633 69828

88216 96597

124450

139996

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

Annual Turn-over (in Lakh Rupees)

279.32 216.89 486.25 521.83

3203

748.61

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

NET PROFIT (In Lakh Rupees)

2.12: NEW PROJECTS

BAMUL have been successfully running in the competitive market by serving the best

for its customers in terms of QUALITY, PRICE, and AVAILABILITY etc. BAMUL

have earned its own LOYAL customers who have contributed for the achievement of the

organization.

BAMUL have implemented many projects in order to serve efficiently and effectively for

its customers in the market. Here the few major and important projects of BAMUL listed

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

To process and handle the present surplus milk a Mega dairy nearly 5 lakh ltrs capacity is

proposed in the Ramanagara district of the state.

To process the entire milk procured by 2025, it is proposed to build second mega dairy of

5 Lakh ltrs capacity 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 improvement and Up

gradation to the modern technology is under progress...

Hosakote Dairy with the processing capacity of 200 TLPD is expandable to 300 TLPD

with an investment of Rs. 3866.01 Lakhs.

New Milk Product Block at Bangalore Dairy with an investment of Rs. 2731 Lakhs

New Curd Block Capacity of 2 Lakh ltrs approximately with an investment of Rs 1000

Lakhs entrusted to KMF on turnkey basis.

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

ltrs with an investment of 900.00 lakhs.

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

8 Bulk Milk Coolers is under process by Union„s own capital.

CHAPTER-3

THEORETICAL BACKGROUND

3.1: Marketing Management

Marketing is a social and administration procedure were persons as well as the group of

individuals get or try to buy what they desire and things that satisfy their needs through

marketing, selling and buying products and services.

Marketing Management is a procedure of arranging and executing the concept, valuing,

promotion and circulation of the service and idea to create an exchange with target mass that

fulfil customers as well as the organizational objectives.

3.2: Marketing channels

In order to reach the focused group or the targeted customers, the marketer utilizes three sorts of

market activities/promoting networks. Communication channels convey message to and collect

messages from the target customers. They might likewise incorporate the accompanying;

Social media

Print media

Telephone

Radio

Television

At present marketing world, social media plays a major role in attracting the customers. The

social media is one of the tool to interact with the customers and to obtain the feedback from the

customers. Some of the social media tools are,

Face Book

Twitter

LinkedIn etc.

3.3: The four Ps of Marketing

Product

Price

Place

Promotion

The extended three Ps are;

Process

Physical evidence

People.

3.4: BRAND LOYALTY

Brand Loyalty is considered as one of the critical element of business as loyal client spend more

cash than the non-faithful/loyal customer and also act as advocates for the brand by drawing in or

passing the positive word of mouth. So, the “faithful customers are at the heart of the company‟s

most profitable customer group”

Brand loyalty is an imperative idea in the tactical marketing. It delivers some reason for

the buyer to involve in the lengthy information search among alternatives. If the business

has the loyal clienteles, than the business may decrease the marketing price as the loyal

customers will wish the same brand. The loyal customers of the business will always

have a tendency to purchase regularly than the non-loyal customers.

Hence, the customer loyalty is when the customer tries to buy or purchase the same brand even

when the brands price is increasing.

As the brand loyalty increases the customer will react less to the competitor‟s promotional

activity and moves. The loyal customers of the brand will always try to be loyal to their favourite

brand for a longer period. The company who have the loyal customers will always have good

sales, more profits and it involves less investment in promotional activities. Hence, the loyal

customers will feel hard to change their brand and will be loyal to their favourite brand.

3.5: BRAND MANAGEMENT

Brand management may be referred to the systematic information of the term „BRAND‟. This

involves making promises to the customers and fulfilling the promises. It means highlighting the

brand, placing the brand in a right point and carrying it in the minds of the targeted customers.

Brand management is nothing much but is like an art of forming and staying in the market for a

long period of time. The branding makes the targeted audience or the customers to stay loyal to

the brand; a good brand must differentiate their products from the competitors brand in the

market. It gives a positive image to the organisation.

At present the brand management involved managing the physical and the intangible factors of

the brand. When it comes to the product brand, the visible factors of the products, packaging of

the product, pricing, colour, unique feature of the product, but in case of the service brand the

visible factors includes the customers understanding , brand image in the minds of the customers

and the earlier services that provided to the customers. The invisible factors may include the

emotional influences with the product or the service itself.

3.6: BRAND ATTRIBUTES

Brand Attributes pronounce the organisations brand factors or the features of the products. It will

convey the basic nature of the brand. It is also referred to the bundle of product or service

features that high lights the tangible or the physical aspects of the brand. It is assumed or

recognized by the brand image, actions or the assumptions in the minds of the customers.

A solid brand needs the below attributes:

Relevancy

A decent Brand must be a related one, it should meet the hopes of the customers and should

achieve in the way, and the customer wants it. A moral job should be done to attract the

customers to acquisition of the product.

Consistency

A steady brand should try to convey to the customers for what the brand stands for, and also

should make the customers to believe or trust the brand. A good brand works only when it tries

to convey the information about the product for the customers and should not let the customers to

change their brand.

Proper positioning

A strong brand would be located in the minds of the directed customers and they select it over

other brands through the purchase progression.

Sustainable

A good brand makes the firm competitive. A sustainable brand motivates the company for more

use of advance technology and innovation of the products. PUMA, LEE,, REEBOK may be few

examples for a sustainable brands in the world market.

Credibility

A strong brand must fulfil the promises to its customers. The way organization tries to

communicate the brand to the targeted customers should be a realistic one. It should not fail to

deliver their promises.

Inspirational

A solid brand should transcend or should inspire the class it is well-known for. Dell is well

known for its laptops, Samsung is well known for smart phones. This can be considered as

examples for the inspirational.

Uniqueness

A resilient brand would be dissimilar and sole. It should fix you apart from other competitions in

market. Like APPLE, which offers a unique feature in the iPhone as well as in the iwatches

Appealing

A solid brand should be good-looking. Customers should be concerned by the promise you make

to the customers and by the value you transport to them. For example APPLE Company

promises that it would provide the best after sale service, were it fulfils it by providing the best

after sale service for its customers.

CHAPTER-4

INTERPRETATION & ANALYSIS

Cross tabulation: (Age and Product Preference)

In general preference of the products may differ with respect to the age category of

customers. In the view of understanding this common phenomenon, Cross tabulation of Age on

Product preference has been made and displayed under the Table 4.1.

The tabulated information explores that, Preference of the underlined products (Milk

related) goes maximum with the age band of “26 - 45 Years” – Middle age group. It is also

observed that, very less preference goes to the age band of “above 45 Years”.

From the products point of view, Milk and Curd are the most preferred products and

Sweet product is considered by the customers to the least level. This information has led to

formulate the hypothesis that “Milk Products has a biased preference with age category.” The

similar test of hypothesis is given under the Table 4.1.1

Table 4.1: Cross tabulation of Age Vs. Product Preference

Product Preference Total

Milk Cured Ghee Butter Butter Milk Nandini

Pede(sweet)

Age

15 - 25 years 17 17 3 1 0 0 38

26 - 35 years 23 13 10 8 0 0 54

36 - 45 years 15 6 0 4 10 5 40

Above 45 years 8 5 2 0 0 3 18

Total 63 41 15 13 10 8 150

Hypothesis: H0: Preference of milk products is independent of Age category of respondents.

Table 4.1.1 : Chi-Square Test

Value Df Asymp. Sig. (2-

sided)

Pearson Chi-Square 61.236a 15 .000

Likelihood Ratio 67.162 15 .000

Linear-by-Linear Association 10.176 1 .001

N of Valid Cases 150

a. 16 cells (66.7%) have expected count less than 5. The minimum expected

count is .96.

Interpretation:

The table of Chi-Square test has showed that the underlined hypothesis is rejected. This

rejection has made the researcher to conclude that “Milk Product Preference is based on the Age

category of respondents.

That is, age category of respondents has their own choice as their preference.

Cross Tabulation of Age vs. Satisfaction Level

Table 4.2: Cross Tabulation of Age vs. Satisfaction Level

Count

satisfaction level Total

To the fullest

extent

More than 80 per

cent

Between 50%-

80%

Less than 50% cannot say

Age

15 - 25 years 22 12 2 1 1 38

26 - 35 years 26 15 9 4 0 54

36 - 45 years 6 14 9 9 2 40

Above 45 years 8 2 2 2 4 18

Total 62 43 22 16 7 150

Normally the satisfaction level may differ with respect to the age group of the customers. The

tabulation shows that the satisfaction level is high with the age group of “26 -35 Years” with 54

per cent , followed by the age group of “36-45 Years” with 40 per cent and also it shows that the

low satisfaction level is associated with the age group of “above 45 Years” with 18 per cent .

This leads to the formulation of the Hypothesis that “the satisfaction level has a biased with the

age group”.

Hypothesis: H0: Satisfaction level is independent of Age group of respondents.

Table 4.2.1: Chi-Square Tests

Value Df Asymp. Sig. (2-

sided)

Pearson Chi-Square 39.617a 12 .000

Likelihood Ratio 39.226 12 .000

Linear-by-Linear Association 17.431 1 .000

N of Valid Cases 150

a. 8 cells (40.0%) have expected count less than 5. The minimum expected

count is .84.

Interpretation:

The table of Chi-Square test has showed that the underlined hypothesis is rejected. This

rejection has made the researcher to conclude that “Satisfaction level is based on the Age group

of respondents.

Customers who purchase Nandini Milk Products:

Table 4.3: Table showing customers who purchase Nandini Milk Products:

SL NO SOURCE No.of Respondents Percentage

1 YES 137 91.33

2 NO 13 8.66

Analysis:

The table shows that the major number of customers who were interviewed were purchasing the

NANDINI Products with 91.33 per cent and only 8.66 per cent of respondent were not buying

the NANDINI Products.

Graph 4.1: Graph showing customers who purchase Nandini Milk Products:

Inferences:

This shows that the company has been successfully created a strong customer base. It has

acquired a large number of loyal customers who regularly purchase the NANDINI Products. The

company has to take necessary steps to attract the non-customers who were not purchasing the

NANDINI products regularly.

91%

9%

Customers Who Purchase Nandini Milk

Products

1 YES

2 NO

Customers most preferred product from Nandini brand:

Table 4.4: Table showing customers most preferred product from Nandini brand:

SL NO SOURCE No.of Respondents Percentage

1 Milk 61 40.66

2 Curd 40 26.66

3 Ghee 15 10

4 Butter 16 10.66

5 Butter milk 10 6.66

6 Peda(sweet) 08 5.33

Analysis:

The table shows that the most preferred product from NANDINI was the MILK with 40.66 per

cent followed by the CURD with 26.6 per cent , GHEE with 10 per cent, BUTTER with 10.66

per cent, BUTTER MILK with 6.66 per cent and PEDA ( NANDINI SWEET ) with 5.33 per

cent accordingly.

Graph 4.2: Graph showing customers most preferred product from Nandini brand:

Inferences:

It is clear that the most preferred product from the brand NANDINI is MILK. The company

should take necessary steps to create more awareness of its other milk products in order to attract

more customers towards it products.

40%

27%

10%

11%

7% 5%

Customers Most Prefered Products

1 Milk

2 Curd

3 Ghee

4 Butter

5 Butter milk

6 Peda(sweet)

Customers who are BRAND LOYAL for NANDINI MILK AND MILK PRODUCTS

Table 4.5: Table showing Customers who are BRAND LOYAL for NANDINI MILK AND

MILK PRODUCTS

SL NO SOURCE No.of Respondents Percentage

1 YES, always I stick to the same

BRAND

101 67.33

2 No, I keep experimenting new

brands

19 12.66

3 Rarely 30 20

Analysis:

The table shows the BRAND LOYAL CUSTOMERS of the NANDINI BRAND, almost 67.3

per cent of the customers were loyal to the NANDINI brand, 20 per cent of customers rarely

change the brand and only 12.66 per cent of customers were loyal to the brand only for a certain

period and would be experimenting with the NEW BRANDS.

Graph 4.3: Graph showing Customers who are BRAND LOYAL for NANDINI MILK

AND MILK PRODUCTS

Inference:

The graph clearly explains that most of the respondents were brand loyal towards NANDINI but

the there are customers who change the brand rarely and also customers who will be

experimenting with new BRANDS regularly. The company has to take required actions for

attracting the customers and making them BRAND LOYAL.

67%

13%

20%

Brand Loyal Customers

1 YES, always I stick to the sameBRAND

2 No, I keep experimenting newbrands

3 Rarely

Source of information about the brand:

Table 4.6: Table showing Source of information about the brand:

SL NO Source No.of Respondents Percentage

1 Family members 63 42

2 Peers 31 20.66

3 TV ads 24 16

4 Point of sale 24 16

5 Website 8 5.33

6 Others 0 0

Analyses:

The table shows that the information about the NANDINI products were highly shared by the

family members with 42 per cent followed by the peer groups with 20.66 per cent, TV ads and

point of sale with 16 per cent & 16 per cent accordingly followed by the website with 5.33 per

cent.

Graph 4.4: Graph showing Source of information about the brand:

Inferences:

The main source of information about the brand was from the family members followed by the

peer groups. Hence the company should take proper steps in advertising in various media like

social media, news papers and others to attract the customers effectively.

42%

21%

16%

16%

5% 0%

Source of Information about NANDINI

1 Family members

2 Peers

3 TV ads

4 Point of sale

5 Website

6 Others

Customers who are aware of Nandini Milk Parlor

Table 4.7: Table showing Customers who are aware of Nandini Milk Parlor

SL NO SOURCE No.of Respondents Percentage

1 YES 104 69.33

2 NO 46 30.66

Analysis:

The table shows that the majority of the population who were interviewed were aware of the

NANDINI milk parlors with 69.33 per cent and only 30.66 per cent of population were not aware

of the NANDINI milk parlors.

Graph 4.5: Graph showing Customers who are aware of Nandini Milk Parlor

Inferences:

As still there are 30.66 percent of customers who are not aware of the NANDONO milk parlors,

the company has to take the proper measures to create awareness of the milk parlors among the

customers as well as to the non-customers, hence the number of milk parlors should also be

increased in the major places like bus station, airport and in public place in busy areas.

69%

31%

Customers who are aware of Nandini Milk Parlor

1 YES

2 NO

Customers who have visited Nandini Milk Parlor

Table 4.8: Table showing Customers who have visited Nandini Milk Parlor

SL NO SOURCE No.of Respondents Percentage

1 YES 94 62.66

2 NO 56 37.33

Analysis:

The table shows that the major number of population who were interviewed were visited

NANDINI milk parlors with 62.66 per cent and only 37.33 of the population were not visited the

milk parlor.

Graph 4.6: Graph showing customers who have visited Nandini Milk Parlor

Inferences:

The above graph shows that the 37.33 per cent of the population were not visited the NANDINI

milk parlors; this may be due to the low in number of milk parlors in the state. The company

should take proper measures to increase the milk parlors even in the rural areas were it is

required.

63%

37%

customers who have visited Nandini Milk Parlor

1 YES

2 NO

Factors that help customers to stay loyal to the brand

Table 4.9: Table showing Factors that help customers to stay loyal to the brand

SL NO SOURCE No.of Respondents Percentage

1 Quality 90 60

2 Pricing 24 16

3 Communication strategies 2 1.33

4 Availability 34 22.66

Analysis:

The table shows that the customers stay brand loyal mainly because of the QUALITY of the

NANDINI milk products with 60 per cent followed by the availability with 22.66 per cent,

pricing with 16 per cent and communication strategies with 1.33 per cent.

Graph 4.7: Graph showing Factors that help customers to stay loyal to the brand

Inferences:

The major reason for the BRAND LOYALTY is the QUALITY of the product. However the

company is successful in maintaining its high quality and capturing the large number of

customers towards the brand. This shows the CUSTOMERS were always served with the

Best quality

60% 16%

1%

23%

Factors that help customer to stay BRAND LOYAL

1 Quality

2 Pricing

3 Communicationstrategies

4 availability

Price of the products

Table 4.10: Table showing Price of the products

SL NO SOURCE No.of Respondents Percentage

1 Costly 18 12

2 Affordability 55 36.66

3 Reasonable 77 51.33

Analysis:

The table shows that the pricing strategy of the company is maintained well and is successful in

attracting the large number of loyal customers. The large number of the population who were

interviewed were responded the price of the NANDINI products is Reasonable with 51.3 per

cent followed by affordability with 36.66 per cent and costly with 12 per cent.

Graph 4.8: Graph showing Price of the products

Inferences:

Among the interviewed population 12 per cent of the respondents feel that the price of the

NANDINI products is costly, so the company should take proper measures to make them

understand the value for the money they pay for the products and the quality that company is

providing to them.

12%

37% 51%

Pricing of the products

1 Costly

2 Affordability

3 Reasonable

Customers satisfaction level from the products

Table 4.11: Table showing Customers satisfaction level from the products

SL NO SOURCE No.of Respondents Percentage

1 To the fullest extent 60 40

2 More than 80% 44 29.33

3 50% -80% 23 15.33

4 Less than 50% 14 9.33

5 Can‟t say 09 6

Analysis:

The table shows that the majority of the customers were fully satisfied with the NANDINI

products, 40 per cent of customers were satisfied to the fullest extent followed by 29.33 per cent

of customers were satisfied with more than 80%, followed by 15.33 per cent of population were

satisfied with 50-80%, 9.33 per cent of customers were satisfied with less than 50% and only 6

per cent of customers were not able to say the satisfaction level.

Graph 4.9: Graph showing Customers satisfaction level from the products

Inferences:

The majority of the NANDINI customers were satisfied to the fullest extent, but there are

customers who were not satisfied fully, this is due to the availability of the products when they

need, major customer need the MILK before 6am were, the supply of milk were after 6 in in

some areas.

40%

29%

16%

9% 6%

customers satisfaction level

1 To the fullest extent

2 More than 80%

3 50% -80%

4 Less than 50%

5 Can not say

Rating for the packaging and product information

Table 4.12: Table showing rating for the packaging and product information

SL NO SOURCE No.of Respondents Percentage

1 Excellent 83 55.33

2 Good 39 26

3 Average 24 16

4 Not satisfied 4 2.33

Analysis:

The table shows that the large population who were interviewed say the packaging and the

product information is excellent, 55.33 per cent of the population rated as excellent followed by

26 per cent of the population rated as good, 16 per cent of the population rated as average and

only 2.33 per cent of the population rated as not satisfied.

Graph 4.10: Graph showing rating for the packaging and product information

Inferences:

The packaging and the product information of the brand was almost excellent but the company

should take necessary measures implementing the modern technology in packing and assuring

the package is attractive with the necessary information in it.

55% 26%

16%

3%

Rating for the packaging & for product information

1 Excellent

2 Good

3 Average

4 Not satisfed

Availability of Nandini Milk Products

Table 4.13: Table showing Availability of Nandini Milk Products

SL NO SOURCE No.of Respondents Percentage

1 Excellent 52 34.66

2 Very good 46 30.66

3 Average 33 22

4 Not satisfied 19 12.66

Analysis:

The availability of the NANDINI products were almost ranked as excellent by the major

respondents, 34.66 per cent of respondents rated as excellent followed by 30.66 per cent of

respondents rated as very good, 22 per cent of respondents rated as average and only 12.66 per

cent of respondent rated as not satisfied, this is due to the availability of the products in rural

areas is not as good when compared to the urban areas.

Graph 4.11: Graph showing Availability of Nandini Milk Products

Inferences:

The availability of the NANDINI products is almost rated as excellent, but there are still areas

were the supply of the products is not effective. The company should take proper measures to

ensure that there is effective and efficient supply of NANDINI products in all the areas were it is

poor. The company should also choose an effective supply chain to maintain a good supply in

the rural areas.

34%

31%

22%

13%

Availability of the product

1 Excellent

2 Very good

3 Average

4 Not satisfied

Respondents who would recommend Nandini Milk Products to others

Table 4.14: Table showing Respondents who would recommend Nandini Milk Products to

others

SL NO SOURCE No.of Respondents Percentage

1 YES 128 85.33

2 NO 22 14.66

Analysis:

The table shows that the majority of the population who were interviewed were ready to

recommend the NANDINI products to others, almost 85.33 per cent of the respondents were

ready and recommending NANDINI products to others and only 14.66 per cent of the

interviewed population were not ready to recommend to others as they were not fully satisfied

with the NANDINI products.

Graph 4.12: Graph showing Respondents who would recommend Nandini Milk Products

to others

Inferences:

The majority of the interviewed population were ready and recommending the NANDINI

products to the others in the society but only 14.66 per cent of the population were not ready to

recommend the products to others as they were not satisfied with the NANDINI products due to

various reasons like pricing, availability and quality of the NANDINI products were not as they

expected, but necessary steps have already take to make them understand about the price

availability and quality of the products.

85%

15%

Respondents who would recommend Nandini Milk Products

to others

1 YES

2 NO

Price sensitive customers

Table 4.15: Table showing Price sensitive customers

SL NO SOURCE No.of Respondents Percentage

1 YES 33 22

2 NO 117 78

Analysis:

The table shows that the highest number of customers who were interviewed were not an price

sensitive customers, almost 78 per cent of the respondents were not an price sensitive customers

but only 22 per cent of customers were price sensitive.

Graph 4.13: Graph showing Price sensitive customers

Inferences:

Among the interviewed respondents majority of the respondents were not an price sensitive and

only 22 per cent of respondent responded as they were price sensitive due to their earning level

was not a sufficient for their daily life, so they might shift to some other brand if they get the

products lesser than the NANDINI products.

22%

78%

Price sensitive customers

1 YES 2 NO

Period of usage of Nandini Milk Products ?

Table 4.16: Table showing Period of usage of Nandini Milk Products?

SL NO Source No.of Respondents Percentage

1 Below 6 months 18 12

2 One to two years 17 11.33

3 Two to four years 48 32

4 Above four years 67 44.66

Analysis:

The table shows the period of the customer buy NANDINI products, almost 44.66 per cent of the

respondents were purchasing the NANDINI products from above four years followed by 32 per

cent of respondents were purchasing from last two to four years, 11.33 per cent of respondent

were purchasing from past one to two years and only 12 per cent of the respondents were new to

the NANDINI brand.

Graph 4.14: Graph showing Period of usage of Nandini Milk Products?

Inferences:

It is clear that almost 44.66 per cent of the customer were purchasing NANDINI products from

the past four years and above and are successful in being as a LOYAL customer for the brand

NANDINI

12%

11%

32%

45%

Period of usage of NANDINI Milk

Milk Products?

1 Below 6 months

2 One to two years

3 Two to four years

4 Above four years

Customers who trust Nandini Milk Products?

Table 4.17: Table showing Customers who trust Nandini Milk Products?

SL NO Source No.of Respondents Percentage

1 Strongly disagree 0 0

2 Disagree 1 0.666

3 Neither agree nor disagree 41 27.33

4 Agree 65 43.33

5 Strongly agree 43 28.67

Analysis:

The table shows the respondents or the customers who trust NANDINI milk and milk products, it

was observed that 28.67 per cent of the respondents strongly agreed that they trust NANDINI

products, followed by 43.33 per cent of the respondents were agreed that they trust NANDINI

products, 27.333 per cent of the respondents were neither agreed nor disagreed, they were not

able to explain their experience, only 0.666 per cent of respondents were disagreed and none of

the respondent strongly disagreed.

Graph 4.15: Graph showing Customers who trust Nandini Milk Products?

Inference;

From this graph it can be assumed that the most of the respondents trust NANDINI products, but

there are few customers who were not able to explain their experience about the products, so

there should be more efficient and effective communication about the products from the

company side.

0% 1%

27%

43%

29%

customers who trust NANDINI milk products

1 Strongly disagree

2 Disagree

3 Neither agree nor disagree

4 Agree

5 Strongly agree

Customers who intend to buy NANDINI products in future,

Table 4.18: Table showing Customers who intend to buy NANDINI products in future,

SL NO SOURCE No.of Respondents Percentage

1 YES 138 92

2 NO 12 8

Analysis:

From the table it is clear that almost 92 per cent of the respondents intend to purchase the

NANDINI milk and milk product in future and only 8 per cent of respondents were not in the

state to assure, as the respondents were not the decision makers of the brand, however required

information were given to the customers to make them to buy the in the near future.

Graph 4.16: Graph showing Customers who intend to buy NANDINI products in future,

Inference:

The above graph shows that almost all the customers of NANDINI were ready to purchase the

BRAND products in the future except few customers who were not the decision makers of the

brand.

92%

8%

Customers who intend to buy NANDINI products in future

1 YES

2 NO

Customers who consider NANDINI as their first preferred BRAND

Table 4.19: Table showing Customers who consider NANDINI as their first preferred

BRAND

SL NO SOURCE No.of Respondents Percentage

1 YES 115 76.66

2 NO 35 23.33

Analysis:

The table shows that almost 76.66 per cent of respondents consider NANDINI as their first

preferred BRAND during the purchase process, whereas only 23.33 per cent of the respondents

were not considering NANDINI as the first preferred brand.

Graph 4.17: Graph showing Customers who consider NANDINI as their first preferred

BRAND

Inference:

The graph shows that almost all the respondents consider NANDINI as their first preferred brand

during the purchase of milk and dairy products, but there are few respondents who are not wiling

to conseder as their preferred brand as the supply of NANDINI milk was not on time, so the

company should take proper action to make it available on time. The company should select a

proper supply or distribution channel in order to attract the customers.

77%

23%

Customers who consider NANDINI as their first preferred BRAND

1 YES

2 NO

CHAPTER-5

FINDINGS, SUGGESTION &CONCLUSION

5.1: FINDINGS

Objectives

To examine the factors that influence the purchase decision towards Nandini milk products

1. From the study it was clear that the 78 per cent of the respondents were not a price

sensitive but only 22 per cent of the respondents were price sensitive due to the low level

of income and low standard of living of the respondents.

2. The study clearly says that the 34.66 per cent of the respondents rated as excellent for the

AVAILABILITY of the NANDINI products, followed by the 30.66 per cent of

population rated as very good, 22 per cent of population rated as average and only 12.66

per cent of population rated as not satisfied because there was not an effective supply of

milk and milk products for the remote areas.

3. From the study it is identified that the pricing policy of NANDINI brand stayed good,

nearly 51.33 per cent of the respondents say that the price of the products is reasonable

followed by the 36.66 per cent of the respondents say that the pricing is affordable and

only 12 per cent of the respondents say that the pricing is costly.

To analyse the satisfaction level of the Nandini Milk Products customers

4. From the study the satisfaction level of the customers were found out, almost 40 per cent

of customers were satisfied for the fullest extent followed by 29.33 per cent of customer

were satisfied till 80%, 15.33 per cent of the customer were satisfied up to limit of 50-

80%, 9.33 per cent of the customers were satisfied up to the limit of less than 50% and

only 6 per cent of the customers were in the position who could not say the level of the

satisfaction level.

To examine the brand loyalty of Nandini Milk Products at BAMUL.

5. From the study it was found that the 44.66 per cent of the respondents were acquiring

NANDINI milk products from the past four years and above followed by 32 per cent of

the respondents were purchasing from past two to four years, 11.33 per cent of the

respondents were purchasing from past one to two years and only 12 per cent of the

respondents were new customers to the brand.

6. The study shows that almost 85.33 per cent of the respondents (the loyal customers) were

ready to recommend the NANDINI brand to others and only 14.66 per cent of the

respondents were not ready to recommend the NANDINI product to others as they were

not fully satisfied with the products from Nandini.

7. To be a loyal customer, quality was given more importance with 60%, than the next

importance is given for availability with 22.66%, the pricing with 16% and the

communication strategy with 1.33%.

8. From the study it was known that the almost 91.33 per cent of respondents were

purchasing the NANDINI milk and milk products and only 8.66 per cent of the

respondents were not buying the NANDINI products.

9. From the respondents who were interviewed, all most 69.33 per cent of the respondents

were aware of the NANDINI milk parlors but the remaining 30.66 per cent of the

respondents were not aware of the NANDINI milk parlor due to lack of awareness of the

NANDINI milk parlors in the state.

10. From the respondents who were interviewed, the majority of the respondents were visited

the NANDINI milk parlors directly with 62.66 per cent and only 37.33 per cent of the

respondents were not visited the NANDINI milk parlors due to the limited number of

MILK parlors.

11. The study shows that almost 85.33 per cent of the respondents were ready to recommend

the NANDINI brand to others and only 14.66 per cent of the respondents were not ready

to recommend the NANDINI product to others as they were not fully satisfied with the

products from Nandini.

To know the fast moving product of Nandini brand

12. It was found that the milk is the fast moving product with 40.66%, followed the curd with

26.66 per cent, ghee with 10 per cent, butter with 10.66 per cent and butter milk & peda

(sweet) with 6.66 and 5.33 per cent accordingly.

To know the customers perception about the brand

13. In remote areas customers are finding it difficult in getting the Nandini products.

14. Some customers want the brand to be one of the national brand that‟s available

throughout India.

15. The customers learning about the product is through family members (loyal customers)

with 42% and television ads 16%. Point of sale and website also contributed in learning

process by 16% and 5.33% respectively.

16. The study clearly shows that the 55.33 per cent of the respondents rated the packaging

and product information as excellent, followed by the 26 per cent of the population rated

as good, 16 per cent of population rated as average and only 2.33 per cent of population

rated as not satisfied.

5.2: SUGGESTION

1. During the internship it was seen that the availability of milk products other than milk is

very less, so the milk products should also be available to the customers where ever the

milk is available. This certainly increases the sales volume of the milk products of the

company.

2. As our country is moving towards “DIGITAL INDIA”, there is a high increase in the

number of internet users so, it is suggested that to create a BAMUL APP, or an online

plate form for the customers.

3. The most of customers expect best quality, taste and accessibility while acquiring the

milk and the milk products. And BAMUL has reached the expectation in case of quality

and taste but small effort has to be taken to increase the accessibility of the milk products.

4. During the study it was noticed that the number of Nandini Milk Parlors are limited/ less

in numbers, so the efforts should be taken to operate in busy areas like metro stations, bus

stations etc.

5. Even though the company has its loyal customers, some efforts have to be taken to attract

the non-customers in the market.

6. The placement of Nandini Milk and Milk Products in malls, super markets and in hyper

markets should be enlarged compared to the present.

7. The customers who were not purchasing the Nandini products (the non-customers) feel

that the price is the major cause for not buying/purchasing from this brand. However the

company should take prerequisite steps to make them understand the value for money

what they get from Nandini in terms of quality and healthiness of the products.

8. The products like Nandini ice-cream, peda (sweet) and badam drink has a great

opportunity to grow in the market but the large number of customer were not aware of

this products, so the company should take required steps in order to increase the

awareness and more efforts is required to promote panner and khoa.

9. After interacting directly to the customers, I feel the company has a great customer

support to operate online. Creating an online store especially for Nandini Brand will

attract a large number of customers throughout the country.

10. The customer will be more loyal to the brand if it offers an online platform to its

customers.

11. During the study it was found that the promotional undertakings are not much effective,

steps has to be taken for an effective promotional undertakings.

12. Providing display materials to the retailers will be a strong promotional activity were the

customers are directly influenced and help them to stay loyal to the brand.

5.3: CONCLUSION

Customer brand loyalty is of prime significance for business groups. Outcomes of the current

study conclude that the features such as product quality, customer‟s satisfaction, availability and

price of the product play a major part in strengthening customer brand loyalty.

Durable victory and sustainable reputation of the union depends on the customer‟s loyalty

towards the brand. This study supports the view that product quality, customer‟s satisfaction,

accessibility and price of the brand products should stay prime focus for the organization to

sustain market share in today‟s competitive business situation.

As customers perceive an increase in the quality of their preferred products, their loyalty to such

brands tends to increase the more. Consumers are ready to patronize only those brands they feel

can offer them superior quality relative to their cost and availability.

As the Nandini brand customers become progressively satisfied with the products, their loyalty

for such products become confident.

Customers brand loyalty can rise even more, if they receive reinforcement in messages about the

functionality and quality of the products they have obtained. Thus as consumer become

progressively aware of the image, availability, quality and consistent price of their preferred

brand, they become loyal to such brand.

This study conclude that if milk commercial wants to enjoy worthy profit, it must strive hard to

rise the loyal customer , customers satisfaction, brand name awareness, product quality,

promotion, customer relation and competitive pricing.

BIBLIOGRAPHY

Books;

1. Philip Kotler :- Principles of Marketing

2. Parashuraman :- Marketing research

3. Paul Samuel :- Consumer behavior

4. Suraj R Nair :- Consumer Behavior in Indian Perspective

WEBSITES;

www.kmfnandini.com.

www.NDDB.com

www.nandinimilk.com

www.nandinimilkproducts.com

www.WIKEPEDIA.com

www.managenent paradise.com

www.google.com

www.managementstudyguide.com

QUESTIONNAIRE

Dear Sir/Madam,

I am MOHAN P pursuing MBA from NEW HORIZON COLLEGE OF ENGERNEEING

Bangalore. As a part of my academic necessity I am undertaking project on “Customer Brand

Loyalty in exact to Milk & Milk products” so I would kindly wish you to offer essential

information, the information providing by you will not be disclosed to any other purpose.

Thank you.

1. Name :_______________________

2. Gender :

a) Male

b) Female

3. Location :

4. Age :

a) Age group between 15-25 years

b) Age group between 26-35 years

c) Age group between 36-45 years

d) 45 years and above

5. Are you obtaining or buying Nandini Milk products?

a) Yes, I‟m buying

b) No, I‟m not interested

6. From how long you have been using Nandini Milk Products?

a) Below 6 months

b) From one to two years

c) From two to four years

d) Above five years

7. Which is the most preferred product from this brand?

a) Milk

b) Cured

c) Gee

d) Butter

e) Butter milk

f) Nandini peda (sweet)

8. Would you intend to buy these brand products in near future?

a) Yes

b) No

9. Would you consider this brand as the first choice during the purchase?

a) Yes

b) No

10. Do you trust Nandini Milk Products?

a) No I strongly disagree

b) I disagree

c) I may agree nor disagree (cannot say)

d) Yes I Agree to the point

e) Yes I Strongly agree to the point

11. Are you a loyal customer for Nandini Milk Products?

a) Yes always, I stick to the same products

b) Never, I keep experimenting with new brands

c) Rarely

12. From where did you get to know about the information of our product or the brand?

a) Through the members in family

b) Through friends and other groups

c) Through television advertisements

d) From local point of sales

e) Through Website

f) Others ____________________

13) Do you know about the Nandini Milk parlour?

a) Yes, I know

b) No, I don‟t know

14) Ever you have visited Nandini Milk Parlour still now?

a) Yes, I have visited

b) No, haven‟t visited still now

15) If you are a loyal customer for this brand, can you address the features or the factors

that help to stay loyal to the brand?

a) Quality of the products

b) Pricing

c) Communication strategies of the company

d) Availability

16) Will you react more to the changes of price or less,( sensitive consumer)?

a) Yes, I‟ll react

b) No, I won‟t react or response

17) What do you feel about the price of Nandini Milk Products is

a) Costly

b) Affordable

c) Reasonable

18) Will you prefer the same brand even though there is an increase in the price of the

products (and you will be a loyal customer to the BRAND).

a) Yes, I‟ll prefer the same product Up to certain limit in price increase

b) Yes, I‟ll be a loyal customer irrespective of the price increase

c) No ,I will not prefer if there is an increase in the price

19) If any other competitor offers with low price, would you prefer the0m?

a) Yes

b) No

20) To what extent has the product stayed effective to meet your needs and wants?

a) To the fullest extent( fully satisfied by the products)

b) Satisfied More than 80%

c) Satisfied between 50% - 80%

d) Satisfied Less than 50%

e) Can‟t convey or explain.

21) How would you rate the packaging and product info of the product with I being the

minimum and V being the maximum

a) I

b) II

c) III

d) IV

e) V

22) Will you refer (recommend) Nandini Milk Products to any others?

a) Yes, I‟ll refer

b) No, I don‟t like to refer

23) I would intend to buy other products of this brand.

a) Strangle agree

b) Agree

c) Disagree

d) Strangle disagree

24) Availability of Nandini Milk Products is

a) Availability is Excellent

b) Availability is Very good

c) Availability is Good

d) Availability is Not satisfied