Internship report md

INTERNSHIP REPORT
An organizational study
At

MOTHER DAIRY,
KOLKATA
Submitted in partial fulfillment of the requirement of the Bangalore University for
the forward of degree in

Master of Business Administration
Submitted by
Mr. Anuranjan Thakur
Reg. No. 10XQCMA014
Under the guidance of Prof.Sumithra Sreenath

M.P. Birla Institute of Management
Associate Bharatiya Vidya Bhavan
No. 43, Race Course Road,
Bangalore 1. August, 2011

M.P BIRLA INSTITUTE OF MANAGEMENT
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Student Declaration

I, Anuranjan Thakur (10XQCMA014) hereby declare that the internship report, an
organizational study conducted at Mother Dairy, Kolkata submitted in partial
fulfillment of the requirements of the Bangalore University for the Award of degree in
Master of Business Administration is a bonafide work carried out by me under the
guidance of Prof.Sumithra Sreenath, MPBIM, Bangalore.
This report has not been submitted earlier to any other university or institution for the
award of any degree/diploma.
The contents of this report are based on the data collected by me at Mother Dairy,
Kolkata under the guidance of Mr. K. P. Boral (In-charge Personal Department)

Place: Kolkata Anuranjan Thakur

Date: 18/ 08/2011 Reg. No. 10XQCMA014

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ACKNOWLEDGEMENT
I have this opportunity to acknowledge the invaluable assistance, support and guidance
extended by each and everyone who has contributed towards the successful completion
of this project report.
I would first thanks God almighty for giving me the wisdom and strength to undertake
this project.
I further express my deep sense of gratitude to Mr. Dhiman Sen, without whose help
and support this project would not have been possible.
I also express my deep gratitude to the management of Mother Dairy and
Mr.K.P.Boral(In-charge Personal Department) for the permission, support and for the
encouragement which they have provided for the successful completion this project.
I would like to thank Prof.Sumithra Sreenath my internal guide for giving his
graceful assistance and guidance in completion of this report.
At last I would thank my parents and all my friends for their support and motivation
throughout the project.

Date: 18/08/2011 Anuranjan Thakur

Place: Bangalore Reg. No: 10XQCMA014

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TABLE OF CONTENTS

CHAPTER No. PARTICULARS PAGE
NO.

1. Introduction 5-16
1.1 Background of the study
1.2 Industry Profile
1.3 Company Profile
1.4 Vision, Mission and Objectives
2. Organization Structure 17-19
2.1 Organization heirarchy
2.2 Management Relationship

3. Functional Areas 20-42
3.1 Finance Department
3.2 Marketing Department
3.3 Production Department
3.4 HR Department

4. SWOT Analysis 43-74
5.1 Strength and Weakness
5.2 Opportunities and Threats
5.3 Problem Identifications and solutions

5. Observations, Suggestions and Conclusion 75-79
6.1 Major findings
6.2 Suggestions
6.3 Conclusion

6. Annexure(Financial statements) 80-84
Questionnarie
Bibliography

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INTRODUCTION

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1.1 Background of study
The Internship Study was conducted in MOTHER DAIRY KOLKATA from
18/07/2011 to 18/08/2011. The need to undergo this Internship Study is to fulfill the
requirement of MBA degree course of Bangalore University. The training was
undertaken during July and August and the main purpose was to know the practical
implication and policies of the company, the theoretical aspects that we study during
our course can be observed how exactly they are put into practice.

The main objective of undergoing this training is to get the practical exposure of the
functional departments of the organization such as Marketing, HR, Finance,
Production departments and also to study the inventory, cash and receivable at
MOTHER DAIRY KOLKATA. During training I studied how the theoretical
knowledge is practically applied in various departments. The internship undergone by
me has helped me in getting practical exposure to the various departments of Mother
dairy.
The report traces the growth and development of the company and gives the selected
outline about the services adopted by the company. The report also explains the
values and gives a brief about the quality and financial aspects of MOTHER DAIRY
KOLKATA.
The study is to prepare the report on the internship training and submit the detailed
and comprehensive report. This will help the company to assess its strength,
weakness to take necessary action to improve the future growth.

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OBJECTIVE OF THE STUDY
 To understand the function of each department namely Personal (Human
Rsource), Finance, Marketing and Production Department.
 To study working of various department of the organization in general.
 To identify strength and weakness of the organization.
 To identifying the effect of competition.
 To understand the concept of “Working capital management”.
 To suggest ways for better management and control of working capital at the
concern.

1.2 INDUSTRY PROFILE

Fast moving consumer goods (FMCG) or Consumer Packaged Goods (CPG) – are
products that are sold quickly and at relatively low cost. Examples include non-durable
goods such as soft drinks, toiletries, and grocery items. Though the absolute profit made
on FMCG products is relatively small, they generally sell in large quantities, so the
cumulative profit on such products can be large.
The term FMCG refers to those retail goods that are generally replaced or fully used up
over a short period of days, weeks, or months, and within one year. This contrasts with
durable goods or major appliances such as kitchen appliances, which are generally
replaced over a period of several years.

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FMCGs have a short shelf life, either as a result of high consumer demand or because the
product deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables, dairy
products and baked goods – are highly perishable. Other goods such as alcohol, toiletries,
pre-packaged foods, soft drinks and cleaning products have high turnover rates.

The following are the main characteristics of FMCGs:

From the consumers' perspective:

 Frequent purchase
 Low involvement (little or no effort to choose the item -- products with strong
brand loyalty are exceptions to this rule)
 Low price

From the marketers' angle:

 High volumes
 Low contribution margins
 Extensive distribution networks
 High stock turnover

FMCG Products and Categories

 Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps);
 Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products;
Household care fabric wash including laundry soaps and synthetic detergents;
household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners,
air fresheners, insecticides and mosquito repellents, metal polish and furniture
polish;

FMCG IN 2006

The performance of the industry was inconsistent in terms of sales and growth for over 4
years. The investors in the sector were not gainers at par with other booming sectors.

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After two years of sinking performance of FMCG sector, the year 2005 has witnessed the
FMCGs demand growing. Strong growth was seen across various segments in FY06.
With the rise in disposable income and the economy in good health, the urban consumers
continued with their shopping spree.
Food and health beverages, branded flour, branded sugarcane, bakery products such as
bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled
water etc, snack food, chocolates, etc.
Frequently replaced electronic products, such as audio equipments, digital cameras,
Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc.
coming under the category of White Goods in FMCG;
FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs.
60,000 crores. FMCG sector generates 5% of total factory employment in the country and
is creating employment for three million people, especially in small towns and rural
India.

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector
in the economy. A well-established distribution network, intense competition between the
organized and unorganized segments characterizes the sector. FMCG Sector is expected
to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-
year period. It has been estimated that FMCG sector will rise from around Rs 56,500
crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming,
female hygiene, and the chocolates and confectionery categories are estimated to be the
fastest growing segments, says an HSBC report. Though the sector witnessed a slower
growth in 2002-2004, it has been able to make a fine recovery since then.
For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last
quarter. An estimated double-digit growth over the next few years shows that the good
times are likely to continue.
With the presence of 12.2% of the world population in the villages of India, the Indian
rural FMCG market is something no one can overlook. Increased focus on farm sector
will boost rural incomes, hence providing better growth prospects to the FMCG

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companies. Better infrastructure facilities will improve their supply chain. FMCG sector
is also likely to benefit from growing demand in the market. Because of the low per
capita consumption for almost all the products in the country, FMCG companies have
immense possibilities for growth. And if the companies are able to change the mindset of
the consumers, i.e. if they are able to take the consumers to branded products and offer
new generation products, they would be able to generate higher growth in the near future.
It is expected that the rural income will rise in 2007, boosting purchasing power in the
countryside. However, the demand in urban areas would be the key growth driver over
the long term. Also, increase in the urban population, along with increase in income
levels and the availability of new categories, would help the urban areas maintain their
position in terms of consumption. At present, urban India accounts for 66% of total
FMCG consumption, with rural India accounting for the remaining 34%. However, rural
India accounts for more than 40% consumption in major FMCG categories such as
personal care, fabric care, and hot beverages. In urban areas, home and personal care
category, including skin care, household care and feminine hygiene, will keep growing at
relatively attractive rates. Within the foods segment, it is estimated that processed foods,
bakery, and dairy are long-term growth categories in both rural and urban areas.

Indian Competitiveness and Comparison with the World Markets

The following factors make India a competitive player in FMCG sector:
 Availability of raw materials: Because of the diverse agro-climatic conditions in
India, there is a large raw material base suitable for food processing industries.
India is the largest producer of livestock, milk, sugarcane, coconut, spices and
cashew and is the second largest producer of rice, wheat and fruits &vegetables.
India also produces caustic soda and soda ash, which are required for the
production of soaps and detergents. The availability of these raw materials gives
India the location advantage.

 Labor cost comparison

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Low cost labor gives India a competitive advantage. India's labor cost is amongst the
lowest in the world, after China & Indonesia. Low labor costs give the advantage of low
cost of production. Many MNC's have established their plants in India to outsource for
domestic and export markets.

 Presence across value chain: Indian companies have their presence across the value
chain of FMCG sector, right from the supply of raw materials to packaged goods in the
food-processing sector. This brings India a more cost competitive advantage. For
example, Amul supplies milk as well as dairy products like cheese, butter, etc.

1.3 Company Profile
Ma! The first word uttered by a child. Mother‟s Milk, the infant‟s first food enriched
with all the vital ingredients-amino acids, vitamins, minerals, for growth and the most

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important of them all material love after the mother has provide the bay with nourishment
for as long as possible…. She takes over. MOTHER DAIRY KOLKATA makes the little
infant‟s first food an integral part of his/ her diet forever. Hence the „Mother‟ is Mother
DAIRY with the focus being the development of the rural milk producers.
Mother Dairy Calcutta-a Government of Bengal‟s project, was started under operation
Flood II of National DARIY Development Board. It was set up initially to cater to the
demand of the Kolkata‟s urban agglomeration spread over the Kolkata Metropolitan area,
approximately 852 square Kms. Mother DAIRY is also reaching out to be consumers of
other districts. The commissioning of the DAIRY started In July 1978 and the first
Distribution Vehicle loaded with milk sachets rolled out of the DAIRY in the morning of
8th December 1978. Initially, the management of Mother DAIRY was looked after by the
National DAIRY development Board. On 24th March 1982, then honourable Chief
Minister Shri Jyoti Basu Dedicated MOTHER DAIRY CALUTTA to the rural milk
producers and urban milk consumers of West Bengal.
From then onwards, the story of Mother DAIRY is one of success after success. The
Growth of the DAIRY Continued unabated.

Mother DAIRY safeguards the interest of the rural milk producers by encouraging co-
operative movement & marketing the surplus milk available from the villagers, thus
helping the milk producers to realize their own potential for organized endeavourer &
creation of more rural wealth in the shape of „Anand Pattern‟ as profounder by Dr V
Kurain, the Milk Man of India. In November 1996 the management of Mother DAIRY
was taken over by West Bengal Co-operative Milk Producers Federation Ltd.

It is selling Milk and Milk products Like Misti doi, Flavored Yoghurt, Plain Yoghurt,
Panner, Cow Ghee, and Packaged Drinking Water. Now it has started diversifying its
activity by selling the produce of other cooperative, unioins of West Bengal and other
states as Mother Dairy has a strong Marketing network.
In the year 2000, Mother Dairy Kolkata received ISO 9002 certification and in the year

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2001 Mother dairy received HACCP certification. Mother Dairy has also received
Environment Excellence Award(2000-2001). In the year October 2003 Mother dairy
Kolkata received ISO 9001:2000 and the certification agency is SGS India Pvt Ltd. A
renowned London based organization.

Consumer Awareness Program
Over the last few years these programs have gathered momentum and success, Under this
programs, school children are invited to the Dairy to give them the first hand experience
of the activities inside dairy to inculcate in them the healthy habit of drinking milk
everyday and to educate them on the importance of ensuring that the milk they drink is
pure and has been hygienically processed
Awards Given to Mother Dairy Kolkata
1987: National Productivity Award
2000: ISO Certification
2001: HACCP Certification
2002: First Environment Award

MOTHER DAIRY KOLKATA HERITAGE & TRADITION
 MOTHER DAIRY KOLKATA has first introduced poly pouch in Eastern India
in year 1978.
 MOTHER DAIRY KOLKATA has first introduced loose milk selling through
automatic coin operated booth first in Eastern India in the year 1980.
 MOTHER DAIRY KOLKATA has first introduced the highly perishable cultured
milk product like misti doi and Yoghurts through pilfer proof cup under sealed
condition having 6 days self life under refrigeration breaking the tradition of
selling this product through earthen pot.

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 MOTHER DAIRY KOLKATA has first introduced cultured milk products in
Eastern India in most of the trains especially in Rajdhani Express, Coromondal
express, Bombay Mail operation from Howrah and Sealdah.
 MOTHER DAIRY KOLKATA has first received the National Productivity award
in the Eastern India dairy industry.
 MOTHER DAIRY KOLKATA has first accredited the ISO 9001: 2000
Certification in the Eastern India dairy Industry.
 MOTHER DAIRY KOLKATA has obtained the HACCP Certification in the
Eastern India dairy Industry.
 MOTHER DAIRY KOLKATA has first received the Environmental Excellence
award in 2000-2001 in the Eastern India dairy industry.

MOTHER DAIRY KOLKATA
(At a glance)
Name : MOTHER DAIRY
Address : P.O – Dankuni Coal Complex
Dist- Hooghly, West Bengal
Pin No: 712310
Date of foundation : 8 th December, 1978.
Total Area : 10 Hectares
Build Up Area : 8700 SQM (93612 SQFT)
Milk Market share( in West bengal) : 25%
Average Annual Turnover : 200 Crore

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(Product information)

Own Products : Cow Milk, Toned Milk, Double toned
Milk, Full Cream milk, Paneer, Misti
Doi, Plain Yoghurt, Flavored Yoghurt,
Rosogolla, Rajbhog & Packaged drinking
water.
Traded product : Ghee, Paneer.
Installed capacity (Milk) : 600000 Ltr/day.
Average Present Production : 400000 Ltr/day.
Installed Capacity (Misti doi & Yoghurt) : 2000 Kg/day.
Average Present Production : 2000 Kg/day

1.4 MISSION, VISION AND OBJECTIVE OF MOTHER DAIRY
KOLKATA

Mission: To sustain market leadership in the production and marketing of a variety of
liquid milk and milk products with assured quality at an affordable price, covering all
market segments and to maintain the growth, prosperity and unity of all internal and
external customers.

Vision: With full dedication and team work, MOTHER DAIY KOLKATA shall strive to
delight its internal and external customers through quality products and services.
Create an environment where stake holders feel happy and system will be eco-friendly.
Through innovation, continuous learning and consistent improvement achieve sustained
growth and excellence.

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POLICY & OBJECTIVE OF MOTHER DAIRY KOLKATA

Quality policy
 Satisfy our customers with quality products and services.
 Achieve and sustain growth and excellence.
 Maintain a happy and fulfilling work environment.

Environment Policy
 Be reactive and conscious about various Environment regulation.
 Create and maintain a clean green belt in and around the dairy premises.
 Always keep our environment safe, free from pollution and continual sustainable
development.

Quality Objective
 Provide regular and timely supply of milk and milk products at convenient
distribution points under clean and hygienic condition for different segments of
consumers.
 Provide remunerative returns to milk producers and other associations.
 Promote innovations, continuous learning and improvement.

Social objective
 Protect the rural marginal milk producing farmers from exploitation of profit
earning middleman.
 Help them rear their cattle in hygienic condition there by increasing production of
Milk.
 Provide wholesome milk to the customers in Kolkata and Bengal at a reasonable
price throughout the year, right at their door step.

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ORGANIZATIONAL STRUCTURE

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2.1 ORGANIZATIONAL HIERARCHY

CGM

DGM

MANAGER

DY MANAGER

ASSISTANT
MANAGER

OFFICER

SUPRITENDENT

SR. ASSISTANT

ASSISTANT

WORKER

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2.2 MANAGEMENT RELATIONSHIP

Designation Profile

Chairman Minister In charge Animal Resource
Development Dept. Govt. of W.B

Vice chairman Principal Secretary to the Govt. of W.B
Animal Resource Development Dept. Govt.
of W.B

Member Managing Director, WBCMPF Ltd.

Member Milk Commissioner Govt. of W.B

Member State Director National Dairy Development
Board Kolkata

Member-convener Chief General Manager, Mother Dairy
Kolkata.

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FUNCTIONAL AREAS

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3.1 FINANCE/ACCOUNTS DEPARTMENT

E.O MANAGER
(1)

E.O.D.Y MANAGER
(1)

E.O OFFICER
(3)

E.O SUPERINTENDENT
(8)

SENIOR ASSISTANT
(5)

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TOTAL NO OF EMPLOYEES: 18

Net Profit for the financial years:
Year 2005-06 2006-07 2007-08 2008-09
Net profit (49657560) (140443042) 25458292 62428340

Graph representing the Net Profit of Organization

Net profit

100000000
62428340
50000000 25458292

0
2005-06 2006-07 2007-08 2008-09
-50000000 Net profit
-49657560
-100000000

-150000000 -140443042

-200000000

From the above the above graph it could be understood that the organization was in loss
in the year 2005-06 & 2006-07. In further years the organization started earning profit
which has been described in the graph. The financial position of the organization is good
if we compare with the expenses. The cost of production is increasing year by year but
the profit is also increasing but not up to that extent.

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3.2 MARKETING DEPARTMENT:
Mother Dairy Kolkata was set up to cater milk and milk products to the consumers of
Kolkata and its metropolitan areas about 852 sq. Km but subsequently in the year 2000
Mother dairy is marketing milk and milk product in the town of Burdwan, Durgapur,
Asansol, and in the Year 2002 Mother dairy is marketing milk and milk product at
Midnapur, Haldia, Bankura, Arambug, Ranaghut, Krishnanagar, Bangaon, Basirhat,
Diamond Harbour,Canning, Raychak etc, through its franchises.
Mother Dairy has set up 208 coin operated automatic self dispensing milk vending booths
(Mini Dairies) all over Kolkata and its metropolitan areas. It has 385 insulated Tank
outlets and about 385 polypack outlets. Beside this all the reputed hotels, Railways,
Airlines and Hospitals take milk and milk products from Mother dairy Kolkata.

Like any other agricultural commodity, there are regional and seasonal imbalances in the
production of milk also. In flush season and in milk surplus areas, when excess milk is
available, it is converted to Skim Milk Powder (SMP) and Butter Fat and then stored.
During the lean seasons and in milk deficit areas, when the availability of fresh milk is
low, to augment supply, SMP and Butter Fat are recombined without jeopardizing the

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goodness and nutritive value of milk.
After chilling, the milk from the silos undergoes clarification, homogenization and
pasteurization. Milk is passed through the clarifier at 40 o Celsius so that all extraneous
matters are separated and removed from the milk.
o
Homogenization is carried out at a temperature of 70 Celsius. It is a process by which fat
globules in the milk, which have a natural size of 8-12 microns are broken down into
much smaller sizes of less than 2 microns and evenly distributed throughout the milk.
This reduces the tendency of fat to separate at and float the surface as a cream layer. This
process also makes the milk more easily digestible.
The milk is pasteurized at 80o Celsius to destroy pathogenic bacteria.

Finally, the milk is chilled to 4o Celsius and stored. The milk is now ready for travel to
thousands of waiting consumers.
Just prior to dispatch, the milk is glycol chilled to about 2 o Celsius and either
automatically packed in polyethylene pouches or loaded in Mother Dairy‟s fleet of
Insulated road milk tankers to be delivered at the various distribution points.

Milk and Milk Products:
Mother Dairy‟s Milk is wholesome, Pure, healthy, and nutritious an important food for

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pregnant mothers, growing children, adolescents, adults, aged, and patients. It is fortified
with Vitamin A, antidote to night blindness. Fresh milk procured from milk producers is
pasteurized, clarified, Homogenized, processed, and packed and goes through stringent
quality checks.
Toned Milk Yoghurt.
Cow Milk
Full Cream Milk
Double Toned Milk
Misti Doi
Ghee
Paneer
Plain Yoghurt
Rosogolla & Rajbhog
Packaged Water

Pictures of the products

Homogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U
DOUBLE TONED MILK
Per1000 ml ]

Composition Consumer Price [Inclusive all taxes]
[%]
Milk Fat 1.5 Rs. 21.00/Ltr in Poly Pouch

Milk SNF 9.0 Rs. 10.50/Half Ltr in Poly
Pouch
Nutritional
Information
[100 ml contains
approx.]
Added Vit A (I.U) 200
Proteins [g] 3.50
Carbohydrates [g] 4.70
Fat [gm] 1.5
Calcium [mg] 124

Available in : Poly Pouches [ 1/2 lts, 1 lts ]
Energy : 46 K calories/100ml.
Preparation of Coffee/Tea, preparation of
Paneer. As it contains low fat. It is ideal
Suitable For :
source of nutrition for adults & aged people
who are weight conscious.

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Homogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U Per
COW MILK
1000 ml ]

[%]
Milk Fat 3.5 Rs. 24.00/Ltr in Poly Pouch
Milk SNF 8.5 Rs. 12.00/Half Ltr in Poly Pouch
Nutritional
Information
[100 ml contains
approx.]
Added Vit A (I.U) 200
Proteins [g] 3.20
Fat [gm] 3.5
Calcium [mg] 117

Available in : Poly Pouches [ 1/2 lts ]
Energy : 62 K calories/100ml.
Preparation of different Bengali sweet
dishes, ideal for drinking purpose. [As it is
Suitable For :
rich- in flavored due to moderate fat
content]

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Homogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U Per
TONED MILK
1000 ml ]

[%]
Milk Fat 3.0
No Pouch selling at
Milk SNF 8.5
present only in Loose milk
Nutritional
Information
[100 ml contains Through Mini Dairy/IT/Non-
approx.] Refrigerated Booth
Added Vit A (I.U) 200 Rs. 21.00/Ltr Loose
Proteins [g] 3.20 Rs. 10.50/Half Ltr Loose
Fat [gm] 3.0
Calcium [mg] 117
Loose [ Any Qty From Mini Dairy/Insulated
Available in :
Tank]
Energy : 56 K calories/100 ml.
Preparation of Coffee/Tea, different
Bengali Sweet Dishes, ideal for drinking
Suitable For : purpose, also used for preparation of
Paneer. [ As it is rich-in flavour due to
moderate fat content.]

MISHTI DOI Delicious Mishti Doi

[%]
[100 gm contains
Rs 10.00/100 gms
approx.]
Milk Fat 3.8
Milk SNF 13.0
Sugar 18.0
Natural Caramel 0.2

Available in : 100 gms packs through Polysterine Cup

Energy : 158 K calories/100gms.
Relish the palatable and soothing taste of
Mishti Doi. Fortified with Vitamin A. It has
excellent nutritional profile and food value.
It helps in digestion and keeps one's
In a Nutshell
system cool. Mother Dairy Mishti Doi is
packed and shelled in pilfer proof cups in
automatic packaging machine ensuring
right quality and quantity.

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PLAIN YOGHURT A Traditional Yoghurt

[%]
[100 gm contains
Rs 9.00/100 gms
approx.]
Milk Fat 3.0
Milk SNF 11.0

Available in : 100 gms packs through Polystyrene Cup


The secret of longer life of the hill tribes of
Bulgaria for centuries was a daily diet of
yoghurt. Yoghurt improves appetite, vitality
In a Nutshell
and vigour, cures intestinal disorder and
controls cholesterol besides having
numerous other beneficial effects.

FLAVORED YOGHURT A Traditional Sweet Yoghurt
Composition [%] Consumer Price [Inclusive all taxes]
[100 gm contains
Rs 10.00/100 gms
approx.]
Milk Fat 3.0
Milk SNF 11.0
Sugar 13.0
Permitted Synthetic
Colors [ Food grade ]
Added Flovours
Available in : 100 gms packs through Polystyrene Cup

Mother Dairy Flavoured Yoghurt is a treat
to your taste bud and is available in
different delicious flavours like Vanilla,
In a Nutshell Pineapple, Green Mango, Chocolate,
Strawberry and Pista. It posses all the
benefits of plain yoghurt. Flavoured
Yoghurt is also fortified with Vitamin A.

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PANEER Made from fresh pure milk, vacuum packed for extra fresheness
per
Composition 100 Consumer Price
gms
Milk Solid Rs 22.00/100 gms
Citric Acid Rs 50.00/250 gms
Common Salt
Nutritional
Information
[100 gm contains
approx.]
Milk Fat [gm] 25
Milk Protein [gm] 25
Water [%] 50
Calcium [mg] 600
Vitamin A [micro] 300

Available in : 100 gms / 250 gms / 1 Kg [against Order ]
Direct consumption & for preparation of
Suitable For :
different delicious dishes.

COW GHEE Prepared from fresh Cow Milk having cooked flavour
Available in [gms] Consumer Price [Inclusive all taxes]
100 - Rs 30.00

200 - Rs 56.00
Rs 125.00 1Kg---
500 - Rs.230.00
Direct consumption & for preparation of
Suitable For :
different delicious dishes.
Cow Ghee is the richest source of Milk Fat of
all Indian Dairy Products. It contains Fat
In a Nutshell soluble Vitamins A, D, E & K that provide
energy. Its pleasing flavour, aroma and
palatability make it a desirable dietary
component as well as valuable cooking Fat.
From time immemorial Ghee is considered as
a source of nutrient in Indian Diet.

- 29 -

PACKAGED DRINKING WATER ISI Marked Packaged Drinking Water
Available in [Ltr] Consumer Price [Inclusive all taxes]
1/2 - Rs 8.00
1 - Rs 12.00
2 - Rs 20.00

5 - Rs 40.00
20 [jar] - Rs 60.00
[jar is returnable, Jar can be retained against
*Note
Security Deposit ]

It is produced using reversed
osmosis technology with multiple
barrier filtration, ozonisation &
In a Nutshell
ultra violet treatment under total
aseptic environment. It is free from
harmful chemical, bacteria & Virus.

Sales for the Year ending:
Year 2005-06 2006-07 2007-08 2008-09
Sales 1833108057 2080224425 2207237525 2298407148

- 30 -

Graph representing the Sales

Sales

2500000000 2298407148
2207237525
2080224425
2000000000 1833108057

1500000000
Sales
1000000000

500000000

0
2005-06 2006-07 2007-08 2008-09

From the above Graph and data‟s it could be understood that the sales have increased
every year which has converted the loss into profit.

COMPETITORS
 Amul
 Metro dairy
 Red cow
 Others

- 31 -

Despite of being the first in the industry, and having the first mover advantage and the
brand name, the sale has fallen down incredibly due to competitors like Amul ,Metro
dairy , Red Cow and others. There is a need to revamp the company and position it all
over again in the mind of the consumers. In doing so firstly the grievances of the
distributors and the retailers were required to be solved in order to encourage them for
push sales.
The company will be able to understand its strengths, weakness, opportunities and
threats. The survey report submitted by me will assist the company to take right decisions
to increase the turnover and market share.
PRICE EFFECTIVE FROM 2009

Margin (per Product Distribut Retailer’s MRP
ltrs) : Sl.No or’s Price Price
1 Double Toned Milk 19.65 20.00 21.00
2 Toned Milk 20.75 21.10 22.00
3 Full Cream Milk 25.45 25.80 27.00
4 Cow Milk 22.65 23.00 24.00
5 Skimmed Milk 17.65 18.00 19.00

Margin (per Product Distributor’s Retailer’s MRP
100 gms) : Price Price
Sl.No
1 Mishti Doi 6.50 7.20 8.00
2 Plain Yoghurt 6.50 7.20 8.00
3 Favoured 6.50 7.20 8.00
Yoghurt
a) Vanilla
b) Green Mango
c) Chocolate
d) Pineapple

4 Paneer 17.50 18.50 20.00

- 32 -

CURRENT SCENARIO

Mother dairy has a market share of around 33 % in the branded sector in West Bengal
where it sells 3.4 lakh litres of milk daily on an average and undertakes its marketing
operations through around 51 distributors and around 600 retailers in Kolkata itself. It has
a huge advantage over its competitors as it is the only player when it comes to sale of
loose milk through token. Before the entrance of competitors like Amul ,sale of loose
milk through Mother Dairy booths was around 35 % of the entire sale in branded segment
, when Mother dairy was the only player in the market. However since last five years the
sale is continuously declining and presently it is just 8-9 %.

- 33 -

Advertisement and Promotion by Mother Dairy

On the marketing front, Mother Dairy says it's trying to take its product campaigns and
Communications to a higher platform. For instance, in the case of milk, the campaigns do
not talk about the obvious benefits - milk is good for health, it has calcium and so on - but
rather it targets children and are created around ideas such as "The country needs you,
grow faster".
As far as products such as butter, cheese and ice creams go, the campaigns have been
created around "taste". For butter again, the focus is on children. "Amul butter may be
selling the most, but the advertising and promotions are almost always targeted at adults,"
points out an analyst citing Amul's popular Utterly-Butterly campaigns.
Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed by
kids, the company wants them to sit up and take notice of its butter. Makkhan Singh, a
sturdy jovial cow (a cartoon character) has been made its brand ambassador.
While Mother Dairy has been carrying out school programmes - games and activities –
involving Makkhan Singh in Delhi, it has plans to take such activities to Mumbai and
Kolkata as well. It also runs a gaming website on the character to attract children. Equity

- 34 -

and empathy are being built for the brand, the values for which it stands, and the various
other Mother Dairy products, which draw their core values from Mother Dairy milk.
It's cheese for children again. A couple of months ago, Mother Dairy carried out a retail
activity:
"Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invited
for a photo op - dressed as superheros - through Polaroid cameras; and the framed
photograph was presented to them. The activity was carried out in about 150 outlets in
Delhi and Mumbai, with about 20,000-25,000 snaps being taken.
It claims that the exercise resulted in better ties with retailers. A positive response made
Mother Dairy to repeat it in Kolkata as well. Clearly, Mother Dairy has aggressive plans.
But, strong regional brands and other co-operatives will continue to give it tough
competition. It will not be a cakewalk anymore.

- 35 -

3.3 PRODUCTION DEPARTMENT

GERNERAL MANAGER

SR MANAGER (MFG.)

DY MGR (PROD&MFG.) DY MGR (ULITIES) ASSTT.MGR (SAFETY,
HEALTHY &
ENVIROMENT)

SR OFFICER(Thermal) SR OFFICER (ELECT.) SR OFFICER
(AUTOMATION)

│ │ │
│
PRODUCT UNIT CO-ORDINATOR

│ │ │
SHOP FLOOR ENGINEERS & WORKERS

PROCESS OF MILK PRODUCTION
1) Milk Procurement: - Mother Dairy sources its requirement of liquid milk from dairy
co-operatives and producer institutions. Milk is received from farmer cooperatives
through insulated tankers at 2°C temperature in order to retain its freshness.

- 36 -

2) Milk distribution: -Tankers in the morning and in the evening bring in milk from the
regional collection centers. After collection the same tankers are utilized for the delivery
of the processed milk to the distributors. Mother Dairy has about 51 Distributors in the
city of Kolkata. Each of these LAD‟s(Local area distributor ) place their demand by
raising an invoice one day in advance. The demand is also calculated using the
„Calendar‟ Scheme, in this depending on the pre-calculated seasonal demands the outlets
place their orders accordingly. In order to satisfy immediate demand, 20 to 25 tankers are
provided with a buffer stock of 500 litres each day so that they can be mobilized to cater
the demand in an area. To coordinate its operations all the tankers are equipped with
HAM radios.
Distribution Channels:
a) Token Distribution: Also, termed as “Lohe ki bhains” (metal buffalo), is an automated
milk vending machine.
b) Distributors: The packaged milk is distributed via the distributor network throughout
the city.

- 37 -

- 38 -

Processing

At mother dairy, the processing of milk is done by process automation whereby state of
the art microprocessor technology is adopted to integrate and completely automate all
functions of the milk processing areas to ensure high product quality/reliability and
safety. There are four ways of milk processing –
Firstly, Clarification, in which milk is spun at very high speed, removing all dust particles
that are invisible to the naked eye.
Secondly, Standardisation which help to maintain uniformity by raising or lowering its
fat and SNF (solid not fat) percentage to a desired levels, so as to deliver milk to
consumers as per prescribed PFA norms.
Thirdly, it is Homogenization which improves palatability of milk and
Finally, Pasteurization, which kills all pathogenic bacteria present in the milk and thus
making it safe for consumption.
Quality Control

Stringent quality control methodologies are employed in Mother Dairy.
 The milk is tested for adulterations and quality at the time of collection from the
farmers.
 The Milk that comes from the collection points to the Mother Dairy plant is
ensured to have a temperature of not more than 4°C and is subjected to 15 product
and quality checks.
 The Milk quality is checked repeatedly after each processing phase and the
temperature is judiciously maintained less than 4°C always.
 Before the milk leaves the plant for the delivery/distribution outlets the milk is
tested again.
 The temperature of milk in the delivery trucks is always maintained less than 4°C.
 All the trucks that deliver milk have specified guidelines to bring back 100 litres
of milk after distribution. This is done in order to test the delivered milk and to
ensure that the tankers are not adulterated during distribution.

- 39 -

 Since all the employed processing procedures are automated, no contamination by
human hands takes place.
 To ensure milk freshness the collection and distribution points are always chosen
such that the travel time between them is always less than 36 hours.
 Out of the total production about 9% goes directly to the institutions ,23% is the
loose token milk and the rest is distributed through LAD‟s.

Recently State Govt. faces crisis about the production of Mother Dairy. Though there is
the demand of this branded dairy product, the production declines it rate. The cost of
production is increases day by day but State Govt. oppose to increasing of price rate.
Thus for prevent their loss they have to decrease their production.To make a decision
Animal-Wealth Minister Mr. Nure Alam Chowdhury will meet with CM very soon. In
1996 State Govt. took the authority of Mother Dairy from National Dairy Development
Board. The daily demand of milk in this State is 11 lakhs litre; Mother Dairy had produce
3, 80,000 litres till some days ago but now they are producing 3, 50,000 lire. The
decreasing in production brings other problems like machinery and working problems.

Where the other Pvt. Dairy product increases their selling price, Mother Dairy can‟t do
this. As because they could not increase their selling price, they have to decrease their
production volume. We hope for the right step from our Govt. to handle this problem and
a fruitful solution by which this Brand group gets their profit and common people also
get their needy product at reasonable cost.

- 40 -

3.4 HR DEPARTMENT

HR HEAD

MANAGER

D Y MANAGER

OFFICERS

SUPERVISORS

Total no of Employees: 18

HR Functions & Responsibilities

The function of Hr department starts with recruitment and ends with retirement.
 Manpower planning
 Recruitment & placement
 Wages & Salary
 Welfare activities

- 41 -

 Safety of the employees
 Career development
 Training & development
 Maintaining Industrial relation
 Time office management
 Disciplinary Process

- 42 -

SWOT ANALYSIS

- 43 -

4.1

STRENGTH
 Low operational costs
 Presence of established distribution networks in both urban and rural areas
 Presence of well-known brands in FMCG sector
 Financial position is very sound.
 The company is equipped with wide range of products.
 It has good research and development facilities.
 Good infrastructural facilities.

WEAKNESS
 Low exports levels
 "Me-too" products, which illegally mimic the labels of the established brands.
These products narrow the scope of FMCG products in rural and semi-urban
market.
 Unions
 Lack of work culture in terms of punctuality and meaningful discussions.
 Lack of support from the top management.
 Lack of quick decision ability.
 Dependency on Govt. for taking decision.

- 44 -

4.2

OPPORTUNITIES
 Untapped rural market
 Rising income levels, i.e. increase in purchasing power of consumers
 Large domestic market- a population of over one billion.
 Export potential
 High consumer goods spending
 Scope of increasing the sales by the mean of advertisement and promotion.
 Huge availability of Funds and Reserves.

THREATS
 Mother dairy has got stiff competition from competitors.
 Major threats from political condition of the nation and changing of rules and
regulation.
 Changes in economic condition, Inflation and Deflation.

- 45 -

4.3 Problem Identification and Solution in a specific area:

RESEARCH REPORT ON:

Consumers information seeking behavior while Purchasing Milk in Kolkata

Objective
Primary: To analyze the factors which influence the purchase of Milk and milk product in
Kolkata.

HYPOTHESIS :

Null Hypothesis (H0): The Factors does not influence the buying behavior of consumer while
purchasing Milk and Milk product.

Alternative Hypothesis (HA): The Factors does influence the buying behavior of consumer
while purchasing Milk and Milk product.

RESEARCH OBJECTIVE:

 To identify the issues related to Mother Diary retailers.

 To study Mother Dairy strategy vis-à-vis competitors.

 To study the distribution channel in the retail chain of Mother
Diary.

 To cover up SOME PARTS OF Howrah district and get the
retailer‟s as well as consumer‟s feedback.

 To keep track of the daily sales of the retailer in the above
mentioned region.

- 46 -

 To add up new out retailers in this area.

 To find out short term problem in the region that can be sorted out.

Let‟s see how can these task be managed-

Suggesting viable recommendations to the area, the concept of consumption
may be understood to have either of two related meanings, both involving the
notion of an object‟s “disappearance” or transformation. In economic terms,
consumption of an object may be considered to have occurred when it has been
removed from the market by some exchange mechanism, such as when a transfer
takes place between a seller and a buyer of a good. The more commonly
understood meaning of consumption is it physical meaning having been taken. It
is this latter meaning which applies in this characterization methodology. Some
other important definitions are:

Dairy Product: A dairy product shall be defined as milk or any product derived
from milk. With in the general class of dairy foods, different products will be
differentiated by their physical composition or from, or where the market or
consumer differentiates them.
Consumption pattern: The combination of products consumed the frequency of
their consumption and the quantities consumed.
Mode of consumption: The manner in which the dairy product is consumed of
used, e.g. milk may be taken directly or in tea and either cold or warm; butter may be
used as a cooking fat, an edible spread, or a cosmetic.
Regulated Market : A market in which government exercises control, for
instance through price regulation, mandatory standards of hygiene, location-specific
marketing licenses, etc.

Unregulated Market : is here defined as one which effectively operates beyond
the control of governments and is for all practical purposes “self-monitored”, such as in
dairy markets dominated by “over-the-fence” sales to neighbors.

Strategies Adopted

 Directly questioned retailers and distributors.

 Interviewed consumer and asked about there test and preference.

 Checked on the commotion provided by competitors.

- 47 -

 Personally visited prospective retailers .

 Made analyses of the competitors product.

METHOD IN SHORT

Methodologically, marketing research uses the following types of research designs:
Based on questioning:
 Qualitative marketing research: Generally used for exploratory
purposes-small number of respondents- not generalizable to the whole
population- statistical significance and confidence not calculated-
examples include focus groups, in- depth interviews, and projective
techniques.
 Quantitative marketing research: Generally used to draw conclusions-
tests a specific hypothesis- uses random sampling techniques so as to infer
from the sample to the population- involves a large number of
respondents- examples include surveys and questionnaires. Techniques
include choice modeling, maximum difference preference scaling, and
covariance analysis.

Bases on observations:
 Ethnographic studies: By nature qualitative, the researcher observes the
social phenomena in their natural setting- observations can occur cross
sectionally( observation made at one time) or longitudinally
(observations occur over several time period)-examples include product-
use analysis and computer cookie traces. See also ethnography and
observational techniques.
 Experimental techniques: By nature quantitative, the researcher creates a
quasi- artificial environment to try to control spurious factors, then
manipulates at least one of the variables- examples include purchase
laboratories and test markets.

Researchers often use more than one research design. They may start with secondary
research to get background information, then conduct a focus group( qualitative research
design) to explore the issues. Finally they might do a full nation-wide survey(
quantitative research design) in order to devise specific recommendations for the client.

- 48 -

PRIMARY DATA

Primary data was directly collected from retailers and consumers though a questionnaire.

SECONDARY DATA

The secondary source of all the daily sales record of all distributers.

CONSUMER BEHAVIOR

Consumer behavior is the study of when, why, how, and where people do or do not buy
product. It blends elements from psychology, sociology, social anthropology. It attempts
to understand the buyer decision making process, both individually and in groups. Its
studies characteristics of individual consumers such as demographics and behavioral
variables in an attempt to understand people‟s want. It also tries to asses influences on the
consumer from groups such as family, friends, reference groups, and society in general.
Customer behavior study is based on consumer buying behavior, with the customer
playing the three distinct rolls of users, payer and buyer. Relationship marketing is an
influential asset for customer behavior analysis as it has a keen interest in the re
discovery of the true meaning of marketing through the reaffirmation of the importance
of the customer or buyer. A greater importance is also placed on consumer retention,
customer relationship management, personalization, customization and one-to-one
marketing. Social functions can be categorized into social choice and welfare function.
Each method for vote counting is assumed as a social function but if Arrow‟s possibility
theorem is used for a social function, social welfare function is achieved. Some
specifications of the social functions are decisiveness, neutrality, anonymity,
monotonicity, unanimity, homogeneity and weak and strong pare to optimality. No social
choice function meets these requirements in an ordinal scale simultaneously. The most
important characteristics of social functions are identification so the interactive effect of
alternatives and creating a logical relation with the ranks. Marketing provides services in
order to satisfy customers. With that in min, the productive system is considered from its
beginning at the production level, to the end of the cycle.

Keeping all these things in mind I have concentrated over what the dealers , retailers and
customers have said.

- 49 -

DATA ANALYSIS AND INTERPRETATION
For Data collection, some points have been focused from the people with whom the
matters were discussed. I have interpreted these points in graphical presentation and
made some analysis over the Data collected. These are as follows-

A. Satisfaction Level;
1) Poor- 48%
2) Average- 38%
3) Good- 10%
4) Very Good-3%
5) Excellent- 1%

- 50 -

Analysis : According to the graph , the satisfaction level of user of Mother Dairy Milk is
not so much hopeful for the company . It shows a decreasing type of satisfactory level for
this kind of feedback company should be concerned about their quality control , supply
and distribution channel , dealer and retailers demand etc. to hold their market because
customer satisfaction is the only way to sustain market status .

B. Satisfaction level with their regularity maintained in supply –
1. Pour – 15%
2. Average- 60%
3. Good- 20%
4. Very good- 3%
5. Excellent- 2%

- 51 -

Analysis : In case of supply, mother dairy has done a good job in areas nearby
production plant. But in far distance the supply chain though regular still dealers and
retailers are not to much happy because the source distributor is not able to meet
emergency demand and sometimes regular supply is also interrupted due to random
reasons.

C. Inspection Regularity and Response Satisfaction –
1. No visit- 2%
2. Rarely visited-10%
3. Average Visit- 45%
4. Regular Visit- 30%
5. Regular visit and quick action- 13%

- 52 -

Analysis: Inspection from Mother Diary is satisfactory near the Kolkata region and after
wards in between places away from plant the inspection is not too much regular and in
some cases its rare and the response to the problem is not also satisfactory. The quick
response to solve the problem overall is not regular, so the problems of dealers persist.

Inspection from problem solving unit is a big demand and its points out the root
cause of dissatisfaction.

- 53 -

D. Satisfaction with the commission rate-
1. Not at all satisfied- 35%
2. Just satisfied- 50%
3. Satisfied- 12%
4. Happy with commission-3%

Analysis: Commission is a big deal for any kind of fast moving goods sale. In every
steps of chain, dealers or retailers are heavily concerned about this. According to our
research most of the people related to it, are deeply irritated with the marginal
commission rate of the milk products of mother Dairy in comparison to other companies
in the market like Amul, Metro etc. They keep a big margin. The yearly offer for the end
supplier are lesser than the other companies. In some cases it is near about absent. So old
dealers and suppliers due to brand loyalty try to keep themselves happy with less

- 54 -

commission as they have big market. But new users are not at all happy with that. The
linemen deserve and thus expects yearly bonus and other advantages, which are not
possible for the dealers to meet up their demand as their own margin is very less.

E. Demand of Products other than Milk –
1. Curd – 45%
2. Ice cream – 20%
3. Water – 10%
4. Butter – 15%
5. Ghee – 10%

- 55 -

Analysis: Market demands milk of course, but in the Nadia and some areas of 24
pgs (N) district milk is the only supply from Mother Dairy, but the market does have
different other products apart from milk too. Other companies re aware of that and they
are trying to capture the side market. So if company doesn‟t consider this demand they
will lose a good market of these products. Calcutta Mother Dairy is supplying milk as
well as other products in Kolkata region but not concerned about this in the areas where I
have conducted my project.

F. Percentage of customer loss in 2010 due to competition in comparison with 2009
(information from 5 dealers)-
1. 5% - 20% ~ 5%
2. 20% - 35% ~ 40%
3. 35% - 50% ~ 30%
4. 50% – 65% ~ 15%
5. More than 65% ~ 10%

- 56 -

Analysis:
It‟s clear
from the
survey that
during last
one year,
due to high
scale competition the demand for Mother Dairy milk has been reduced. There are many
reasons for that which have been stated in the other analysis and afterwards in the main
compact report. For this, customers have diverted their choice to other brands. Most of
the dealers have lost customer in minimum 20% - 35% range. Some serious loss of
market have been reported even in nearby area of the distribution source. More than 65%
customer loss is also there. Below, the reduction has been shown in curve to make the
situation more clear.

- 57 -

G. Longevity of Milk of other companies in comparison with Mother Diary in normal
temperature.
1. 1 to 2 hours 10%
2. 2 to 3 hours 25%
3. 3 to 5 hours 35%
4. 5 to 7 hours 20%
5. More than 7 hours 10%

- 58 -

Analysis: Mother diary milk product longevity is less than other company milk
product longevity because , Mother Diary milk contains less milk powder than that of
other companies . And this leads to less sustainability than other. If properly not
preserved, milk is spoiled .
So, Mother Diary milk longevity time is lesser than other companies milk product
longevity.

H. Order frequency change in last one year among 5 dealers-

N.B- All readings are in percentage.

- 59 -

Analysis: Order Frequency of no. of crates of milk from retailers have been lessened by
the time of 2009 and 2010 in almost 90% cases. According to the dealers‟ comments, it‟s
found that they have been compelled to cut their order from company short due less
demand from retailers. It has happened due to entry of some other strong brands. Tea
stalls are holding a good market of milk. As other brands have some tea friendly milk
type, they are now in demand.

I. Satisfaction level about clarity of payment and other calculations-
1. Poor- 15%
2. Average- 30%
3. Fair- 45%
4. Very Good- 7%
5. Happy enough -3%

- 60 -

Analysis: We have got from the research that clarity of payment and clarity of other
calculations have varied from person to persons. With the distributor some dealers have
good terms in relation to this matter and thus have no complaints. But in some cases we
have got some different pictures too which is hampering the business of the company. It‟s
a matter of concern.
This should be taken care of by the company.

J. Dealer meeting reduction.
1. Year 1996-1998->5%
2. Year 1999-2001->10%
3. Year 2002-2004->12%
4. Year 2005-2007->20%
5. Year 2008-2010->53%

- 61 -

- 62 -

ANALYSIS:- From the 2 years frequency stat. data, we can observe that the
regular Meeting in between administration & dealers used to take place in regular
interval during 1996 around years, but the rate has been slowly reduced afterwards &
during 2008-2010 time period there is a steep rise in reduction rate, which is a big
concern for dealers & retailers. Their demand is unheard & overlooked by administrative
personnel.

K. According to you which is the main reason for loosing the market share of
mother dairy milk product at Howrah district.
1. Quality of product decreasing day by day 45%.
2. Competitors (i.e. Amul, Metro Dairy, Red cow etc) improve day by day 5%.
3. Low profit margin comparison with competitors 15%.
4. No promotional activity comparison with competitors 30%.
5. Poor marketing strategy 5%.

- 63 -

L. Do you have your own transport facility to deliver the products?
a. Yes 30%.
b. No 70%.

- 64 -

ANALYSIS : Clearly it‟s a tough job for the dealers and others in the chain to handle the
smooth flow of distribution if they don‟t have their own vehicle. But in region lacking of
proper transport system in between dealers and distributor is hampering the task of
reaching milk timely and safely.

M. Overall market grip of mother dairy along with other companies in that area-
a. Mother dairy-20%
b. Amul-40%
c. Metro dairy-25%
d. Red cow-10%
e.Others-5%

- 65 -

- 66 -

Chi-Square Test:

Factors Observed Expected (O-E)2 (O-E)2
Values(O) Values(E) E
Taste
316 297 361 1.215488
Quality
305 297 64 0.215488
Health &
Hygiene 321 297 576 1.939394
Packaging
310 297 169 0.569024
Availability
306 297 81 0.272727
Price
286 297 121 0.407407
Density
236 297 3721 12.52862
(O-E)2 17.14815
E

Level of significance: 5%

Degree of freedom: 6-1 = 5

2 tab is 11.143

Calculations:
2 = (O-E)2 
E

= 17.14815

- 67 -

Conclusion:

Since, calculated value of 2=17.14815 is greater than the tabulated value, H0 is
rejected.
HA is accepted. i.e., The Factors does influence the buying behavior of consumer
while purchasing Milk and Milk product.

Ranking Method

Data Total Ranking

Sum of Taste 316 6

Sum of Quality 305 3

Sum of Health &Hygiene 321 7

Sum of Packaging 310 5

Sum of Availability 306 4

Sum of Price 286 2

Sum of Density 236 1

- 68 -

Total

350

300

250

200
Sum of Taste
Sum of Quality
150
Sum of Health
Sum of Packaging
100 Sum of Availibilty
Sum of Price
Sum of Density
50

0

Sum of Taste
Sum of
Quality Sum of
Health Sum of Total
Packaging Sum of
Availibilty Sum of Price
Sum of
Density

Data

According to this method we can say that Density influences customers the most followed by
Price, Quality, Availability, Packaging, Taste and lastly Health and Hygiene.

- 69 -

Distribution of respondents based on Usage

Milk usage Tea & coffee Drinking Other usage Tea & coffee Grand Total
+ Drinking

NOS. 20 40 5 35 100

- 70 -

- 71 -

Limitations:

 Sample size of 100 is insignificant compared to the large Mother dairy consumers present
 Time and money constraint
 We are under the assumption that whatever information is given by the respondent is true
 This study is based on specific geographical locations

Suggestion:

 Mother dairy is the leading brand because of the features provided by it and the
competitive pricing. Also it is the most popular brand as per our research.
 Density of the milk should be improved
 Price as compared to other competitive brands is very low, hence to increase the profit
margin the price can be increased.
 Availability should be increased because the demand is high.
 Taste can be improved.

Further research:

 Our further research can be done on finding the reasons how the competitors (Amul,
Metro) has managed to increase their market share.
 We can understand what is lacking in the companies Strategies.

CONCLUSION

The final outcome of the project is that the parameters which the sale of Mother Dairy
are price,density,packaging, quality,taste and flavor, health and hygiene, irregular supply
and lasting problem of Milk . Milk market is totally unpredictable market and the
organization should be over- cautious of any complaints that come into milk as it includes
the sentiments of a mother for her kid and she would not prefer to give anything to her
kid which she is not satisfied.
Company should not take risk with the quality for sure. The lesson they should
remember the only principle of business that the ultimate process of gaining profit is to
please the customer with the best effort the company can take. I render this solution to the
company. If the problem in system become critical too much critical the perfect and
emergency recovery can solve the problem.

- 72 -

SUGGESTION

As the Research report says-

 In Retailer & Dealer‟s view, some of the problems (Thin quality, milk gets
spoiled (specially DTM, leakage problem, less replacement facility, supply chain
problem, commission problem, pasting & printing problems, Complete absence of
advertisement etc.) are mainly important.
 They think the marketing officer or marketing executive and the administrative
system have become old , the system is not able to cope up with the standard of
today‟s other new companies in market like Amul.
 They think some thing is suspiciously happening (Product cheating) in the supply
chain process.
 They feel customer relationship should be better. Neither it will declaim.
 The marketing officer or marketing executive don‟t visit for inspection regularly
and if visited ,no further results are produced. So they should visit the retailer,
dealer, and different booths regularly and take quick steps to solve the problems.
 All the retailer, dealer want advertisement & promotion for people awareness
where other brands are capturing huge market by promotion. Even new
companies like Red Cow has got market demand due to huge promotion. Some
dealers advised to provide some scheme or gift for linemen in a year. Other
companies have taken this step.
 Some of the retailer or dealer wants to be authorization but they don‟t get
opportunity. Some of them has huge potentiality to capture market but they are
not provided co-operation from the company. Company is still dealing with long
supply chain with single line distribution
 Some retailer don‟t get much supply but there is market of Mother Dairy.

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Insufficient supply.
 According to sources it‟s reported that 100% replacement is sent to dealers or
retailers but for unknown reason they don‟t get more than 50% of it. So
investigation is needed in distribution and supply chain level.
 Chalan/voucher/sheet must be provided in hand by the driver and relation in terms
of financial as well as behavioural should be fair and clean. It must be ordered if
found absent
 Direct complaint telephone number should be provided for them and quick
response is necessary
 All the subsequent notes must be taken care of soon to run in same pace with
other Giant companies.

I can suggest the company to convert every „NO‟ to „YES‟ and their complaint should
be taken care of. This is the gist of the every problem I have got from the people over
whom I have run my research. Solving these, Market will be a bit more to company‟s
side.

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OBSERVATIONS, SUGGESTIONS & CONCLUSION

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5.1 MAJOR FINDINGS
 One of the most important finding is that there was lack of skilled people.
 The authority to take decision lies in the hand of Government which leads to take
lots of time in decision making.
 There is no proper utilization of fund.
 Scope of expansion is high but the steps are yet to be taken.
 Prices of the milk and milk products were low as compared to the competitors.
 People are unaware of the product and the services provided by the organization.
 Unionization is there in each and every part of West Bengal and Mother Dairy
Kolkata is affected by union; which some becomes a threat for the development
process and sometime act as remedy for the workers.

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5.2 SUGGESTIONS
The recommendations for the company for further growth and profit are as follows:

 Mother dairy should come up with schemes for customers along with retailers as
it would be a real boost to the sales and also it will help the company to get back
its lost customers
 During the survey it was found that many of the retailers were uninterested
because they were concerned about the storage of milk. Instead of refrigerators if
dry ice boxes can be supplied free of cost, sale would be increased. Also it would
be economical and convenient. Later, if the retailer drops out, the box can be
collected back.
 It was seen that the price of the largest selling variety of Mother dairy which is
cow milk is Rs 24/ltr , and the competitor product of Amul is priced at Rs 25/ltr.
Thus the price can be increased and thereby margin of the retailers can be
increased
 Price is not a major concern for the consumers when it comes to a necessity like
milk so the price can be increased by a rupee or two and the quality can be
improved
 Mother Dairy is ISO and HACCP certified. The consumers should be explained
about it through advertisements in order to make them aware
 If MD can do certain promotions as its competitor AMUL does, then it can attract
sales. Promotion with the help of boards, hoardings etc. and also it can advertise
in radio
 It was found during survey that Mother dairy milk gets spoiled quickly, thus a
preservative known as costic which is used by Amul can be applied to produce
milk.

 In order to improve and maintain quality, total quality management measures
should be appointed. It was seen that due to lack of fixed percentage of raw milk
mixed, the quality gets hampered and remain unsteady. The extra milk procured
should be used for production of milk products which are in short supply and raw

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milk should be proportionately used in milk production

 The smell in milk is because of the usage of skim milk powder beyond a certain
point of time, this should be looked into by the manufacturing department and
alternative measure should be used

 The company should try to adopt a relatively short period incentive system in
order to make it more friendly and achievable

 Mother dairy should come up with a scheme for consumers like discount on
Mother dairy Ice cream or any other product on supplying empty pouch packets
of Mother dairy milk

 Differential margin should be given by the LADs to the retailers depending upon
the location and sales

 LADs should be directed to supply milk to small retailers according to their
preference of time ,sometimes late by 6.30 -7.30

 LADs should supply milk through cycle vans and small trolleys also like
competitors to areas where trucks cannot go

 Factory visits helped consumers a lot in understanding the product. LAD should
organize the same with the help of MDC officials.

 Supply of the milk and milk products are very less which results into deviation of
customers from MD products to other products.

 The organization should think of reducing the cost of production which will
ultimately lead to in the profit.

 The company has huge amount as saving in bank which should be used for
further investment.

 The organization should plan to expand its business to other areas of West
Bengal.

 Market research should be conducted frequently which will help the organization
to understand the requirement of the consumers.

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CONCLUSION

It could be said that the organization has huge scope of expansion which can help
them to increase there business activities throughout the State.
It is a Government organization so it can‟t always work for generating profit only; it
has to look at the society also. And this is the only reason the prices of the milk and
milk products are not increased.

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Annexure
(Financial statements)
Questionnaire
Bibliography

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Balance sheet as on 31st March 2009
Particulars Schedule 31.03.09 31.03.09 31.03.08 31.03.08
Sources of Fund
Reserves & surplus I 586072609 523644268
Loans II 107954860 21804039
694027469 738448307
Application of fund
Fixed asset III 65177477 66650252
Current Asset, Loan &
Adv.
1. Inventories IV 678831846 782504018
2. Sundry Debtors 6583951 6820515
3. Cash & Bank Bal. V 177093871 27445898
4. Other Current VI 15092751 4555950
Assets
5. Loans & Adv. VII 36961569 30208978
914563988 851535359

Less: Current Liabilities
& Provision
1. Current liabilities VII 257435498 153527028
2. Provision 28278498 26210276
285713996 179737304
Net current Asset 628849992 671798055
694027469 738448307

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Profit & loss A/c For the year ending 31st march 2009
Particulars 31.03.09 31.03.09 31.03.08 31.03.08
INCOME
Sales 2403797511 2207237525
Other income 27016236 38839065
(Increase)/Decrease in stock of (258466) 377623
finished goods & purchased
stock
2430555281 2248454213
EXPENDITURE
Raw material consumed 744305218 626360406
Milk commodities & other 1133679471 1126685043
Other purchases 34929333 36179464
1912914022 1789224913
Operating Expenses 440370631 403695092
Period adjustment 752543 856329
Depreciation 7992787 8970945
Interest 6096957 18248642
2368126940 2220995921
Profit/loss for the year 62428341 25458292
Bal. Brought from the previous (182971342) (208429634)
year
Bal. Carried from the previous (120543001) (182971342)
year

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CONSUMER FEEDBACK FORM

 CONSUMER PROFILE:-

1. NAME :
2. ADDRESS :
3. PHONE NO (OPTIONAL) :
4. AGE (YRS) :
5. OCCUPATION :

 CONSUMPTION LEVEL AND AVAILABILITY:-

1. MILK CONSUMPTION PER DAY: 250ML/500ML/1L/MORE THAN 1L
2. FREQUENCY OF REQUIREMENT: EVERYDAY/EVERY ALTERNATE DAY/ONCE
OR TWICE IN A WEEK
3. HAS YOUR FAMILY CONSUMPTION INCREASED/DECREASED OVER THE PAST FEW
MONTHS? YES/NO
4. DO YOU GET MD MILK FROM : AUTHORISED OUTLET/FREE OUTLET/HOME
DELIVERY/OTHERS

 BRAND PREFERENCE:-

1. HOW DO YOU CONSIDER MD MILK? VERY
GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY
2. PRICE OF MD MILK TO YOU :
HIGH/MODERATE/COMPETITIVE/AVERAGE
3. TASTE AND FLAVOUR MD MILK TO YOU:
PLEASANT/STALE/SOURING/OTHERS(IF ANY SPECIFY)
4. DENSITY OF MD MILK TO YOU: VERY
5. SHELL LIFE OF MD MILK TO YOU: VERY
6. USAGE OF MD MILK IN YOUR FAMILY FOR: TEA&COFEE/DRINKING/AS OTHER
SUPPLEMENT
7. PARAMETERS OF JUDGEMENT OF THE PRODUCT:
TASTE: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY
QUALITY: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY
HEALTH & HYGIENE: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY
PACKAGING: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY
AVAILABILITY: VERY GOOD/GOOD/SATISFACTORY/NOT
SATISFACTORY
OTHERS (IF ANY SPECIFY)

8. DO YOU PREFER OTHER BRANDS: AMUL/METRO/OTHERS (IF ANY

- 83 -

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