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Summer Training Report
On
CONSUMER BUYING BEHAVIOUR
TOWARDS
VIJAYA DAIRY MILK
Submitted in partial fulfillment of requirements for
the award of the degree of Masters in Business Management
Session : 2018-2020
Under Supervision of: Submitted by:
Mrs. Jyoti Uppal Priyanka
HOD Professor MBA
H.I.M.T., Rohtak Roll NO.
HINDU INSTITUTE OF MANAGEMENT & TECHNOLOGY
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
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DECLARATION
I, Priyanka, Roll No. of MBA Semester 3 of Hindu Institute of Management &
Technology, Rohtak, hereby declare that the project entitled Consumer Buying
Behaviour in Name of company is an original work and the same has not been
submitted to any other institute for award of any other degree. The interim report was
presented to the supervisor on ……………….and the pre-submission presentation was
made on……………….. The feasible suggestions have been duly incorporated in
consultation with the supervisor.
Counter signed Signature of the Candidate
Mrs. Jyoti Uppal Tarn Sharma
HOD Professor, HIMT
Director of the Institute
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ACKNOWLEDGEMENT
"Gratitude is not a thing of expression; it is more a matter of feeling."
There is always a sense of gratitude which one express for others for their help and
supervision in achieving the goals. We too express my deep gratitude to each and
everyone who has been helpful to us in completing the project report successfully.
We would like to thank almighty God for blessing showered on us during the completion
of Dissertation Report.
First of all, we are highly thankful to Dr. Monika (Director HIMT-ROHTAK) for
allowing us to pursue our Dissertation Report on "Ranking of Mutual Fund".
We give our regards and sincere thanks to Mrs. Jyoti Uppal (Project guide) who has
devoted her precious time in guiding us & helping us complete it within time.
We feel self-short of words to thanks our parents and friends who had directly or
indirectly instrumental in the completion of the project. We are indebted to all
respondents for their time passion during the long conversations.
Priyanka
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TABLE OF CONTENTS
DECLARATION
ACKNOWLEDGEMENT
EXECUTIVE SUMMERY
Chapter 1: INTRODUCTION
Introduction
OBJECTIVE OF THE STUDY
Significance of the study
Chapter 2: Review of Literature
Chapter 3: COMPANY PROFILE
 ABOUT BATA INDIA LIMITED
 BATA INDIA LTD. EXPORTS
 COMMITMENT TO SERVICE
 BATA LEADERSHIP POINTS
 BATA RANGE OF PRODUCTS
 PRODUCT PROFILE
Chapter 4: RESEARCH METHODOLOGY
 RATIONALE BEHIND THE STUDY
 RESEARCH DESIGN
 HYPOTHESIS
 LIMITATIONS
Chapter 5: DATA ANALYSIS AND INTERPRETATION
 SWOT ANALYSIS OF BATA
 EVALAUTAION OF MARKETING STRATEGIES
OF BATA INDIA LTD.
Chapter 6: CONCLUSIONS AND LIMITATION
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CHAPTER 7: BIBLOGRAPHY
CHAPTER 8:QUESTIONNAIRE
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INTRODUCTION
Everyday we are coming across with television advertisements, newspaper
commercial direct mails and sales calls. Someone is always trying to sell something.
Anything that can be offered to a market for attention, acquisition use or
consumption that might satisfy want or a need it includes physical object, services and
persons places, organization and ideas.
To satisfy their needs and wants of the people who are depending on market
where transaction take place.
People are participating in marketing by satisfying their needs and wants through
exchange. Exchange is an act obtaining a desired object from someone by offering and
something in returns.
Marketing is a social and managerial process by which individuals and groups
obtain what they want and need through creating and exchanging products and values
with others. Activities such as product development research. Communication,
distribution, pricing and services are Core Marketing activities
If a market do good job of understanding consumer needs, develop products.That
provide superior values and prices, distribution and promotes them effectively, these
products will sell very easily.
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Peter F Drucker: A Leading Management thinker put them in this way, “Aim of
marketing is to make selling superfluous. The aim is to know and understand the
customer so well that the product or service fits and sells itself. Outstanding Marketing
companies stay close to customer”.
Duddy &Rerzon: “Marketing is the economic process by mean of which goods and
services are exchanged and their values determined in terms of money prices”.
American Marketing Association : “ Marketing is the process of planning and
executing the conception, pricing, promotion and distribution of ideas, goods , services to
create exchanges that satisfy individual and organizational goals “
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INTRODUCTION TO CONSUMER BUYING BEHAVIOR
An important part of the marketing process is to understand why a customer or buyer
makes a purchase. Without such an understanding, businesses find it hard to respond to
the customer’s needs and wants.
Marketing theory traditionally splits analysis of buyer or customer behaviour into two
broad groups for analysis – Consumer Buyers and Industrial Buyers
Consumer buyers are those who purchase items for their personal consumption
Industrial buyers are those who purchase items on behalf of their business or
organization. Businesses now spend considerable sums trying to learn about what makes
“customers tick”. The questions they try to understand are:
•Who buys?
•How do they buy?
•When do they buy?
•Where do they buy?
• Why do they buy?
For a marketing manager, the challenge is to understand how customers might respond to
the different elements of the marketing mix that are presented to them.
If management can understand these customer responses better than the competition, then
it is a potentially significant source of competitive advantage.
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Definition of Buying Behavior
Buying Behavior is the decision processes and acts of people involved in buying and
using products.
Need to understand:
 Why consumers make the purchases that they make?
 What factors influence consumer purchases?
 The changing factors in our society.
A firm needs to analyze Purchase behavior for:
 Buyers reactions to a firms marketing strategy has a great impact on the firms
success.
 The marketing concept stresses that a firm should create a Marketing Mix (MM)
that satisfies (gives utility to) customers, therefore need to analyze the what,
where, when and how consumers buy.
 Marketers can better predict how consumers will respond to marketing strategies.
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Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions).
Actual purchasing is only one stage of the process. Not all decision processes lead to a
purchase. All consumer decisions do not always include all 6 stages, determined by the
degree of complexity.
The 6 stages are:
1. Problem Recognition(awareness of need)
Difference between the desired state and the actual condition. Deficit in
assortment of products. Hunger--Food. Hunger stimulates your need to eat.
Can be stimulated by the marketer through product information--did not know you
were deficient? I.E., see a commercial for a new pair of shoes, stimulates your
recognition that you need a new pair of shoes.
2. Information search
o Internal search, memory.
o External search if you need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources etc.
o A successful information search leaves a buyer with possible alternatives, the
evoked set.
o Hungry, want to go out and eat, evoked set is
o Chinese food
o Indian food
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3. Evaluation of Alternatives
Need to establish criteria for evaluation, features the buyer wants or does not
want. Rank/weight alternatives or resume search. May decide that you want to eat
something spicy, Indian gets highest rank etc. If not satisfied with your choice then
return to the search phase. Can you think of another restaurant? Look in the yellow
pages etc. Information from different sources may be treated differently. Marketers
try to influence by "framing" alternatives.
4. Purchase decision
Choose buying alternative, includes product, package, store, method of purchase
etc.
5. Purchase
May differ from decision, time lapse between 4 & 5, product availability.
6. Post-Purchase Evaluation
Outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made
the right decision. This can be reduced by warranties, after sales communication etc.
After eating an Indian meal, may think that really you wanted a Chinese meal instead.
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Types of Consumer Buying Behavior
Types of consumer buying behavior are determined by:
 Level of Involvement in purchase decision. Importance and intensity of interest in
a product in a particular situation.
 Buyers level of involvement determines why he/she is motivated to seek
information about a certain products and brands but virtually ignores others.
The four types of consumer buying behavior are:
 Routine Response/Programmed Behavior
Buying low involvement frequently purchased low cost items; need very little
search and decision effort; purchased almost automatically. Examples include soft
drinks, snack foods, milk etc.
 Limited Decision Making
Buying product occasionally. When you need to obtain information about
unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount
of time for information gathering. Examples include Clothes--know product class but
not the brand.
 Extensive Decision Making/Complex high involvement
Unfamiliar, expensive and/or infrequently bought products. High degree of
economic/performance/psychological risk. Examples include cars, homes, computers,
education. Spend a lot of time seeking information and deciding. Information from
the companies MM; friends and relatives, store personnel etc. Go through all six
stages of the buying process.
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 Impulse buying, no conscious planning.
The purchase of the same product does not always elicit the same Buying
Behavior. Product can shift from one category to the next.
For example:
Going out for dinner for one person may be extensive decision making (for someone
that does not go out often at all), but limited decision making for someone else. The
reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of
friends will also determine the extent of the decision making.
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Factors that influence the ConsumerPurchase Decision making Process
A consumer, making a purchase decision will be affected by the following three
factors:
1. Personal
2. Psychological
3. Social
The marketer must be aware of these factors in order to develop an appropriate MM
for its target market.
Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the decision making. Young people purchase things
for different reasons than older people.
Psychological factors
Psychological factors include:
 Motives: A motive is an internal energizing force that orients a person's activities
toward satisfying a need or achieving a goal. Actions are effected by a set of
motives, not just one. If marketers can identify motives then they can better
develop a marketing mix.
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MASLOW hierarchy of needs!!
o Physiological
o Safety
o Love and Belonging
o Esteem
o Self Actualization
Need to determine what level of the hierarchy the consumers are at to determine
what motivates their purchases. Motives often operate at a subconscious level therefore
are difficult to measure.
 Perception
What do you see? Perception is the process of selecting, organizing and
interpreting information inputs to produce meaning. IE we chose what info we pay
attention to, organize it and interpret it. Information inputs are the sensations received
through sight, taste, hearing, smell and touch.
Selective Exposure
Select inputs to be exposed to our awareness. More likely if it is linked to an
event, satisfies current needs, intensity of input changes (sharp price drop).
Selective Distortion
Changing/twisting current received information, inconsistent with beliefs.
Advertisers that use comparative advertisements (pitching one product against another),
have to be very careful that consumers do not distort the facts and perceive that the
advertisement was for the competitor. A current example...MCI and AT&T...do you ever
get confused?
Selective Retention
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Remember inputs that support beliefs, forgets those that don't. Average supermarket
shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of
purchases are unplanned. Exposed to 1,500 advertisements per day. Can't be expected to
be aware of all these inputs, and certainly will not retain many.
 Ability and Knowledge
Need to understand individual’s capacity to learn. Learning, changes in a person's
behavior caused by information and experience. Therefore to change consumers' behavior
about your product, need to give them new information re: product...free sample etc.
When making buying decisions, buyers must process information. Knowledge is the
familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than those who
have knowledge of a product. Non-alcoholic Beer example: consumers chose the most
expensive six-pack, because they assume that the greater price indicates greater quality.
Learning is the process through which a relatively permanent change in behavior
results from the consequences of past behavior.
 Attitudes
Knowledge and positive and negative feelings about an object or activity-maybe
tangible or intangible, living or non- living.....Drive perceptions
Individual learns attitudes through experience and interaction with other people.
Consumer attitudes toward a firm and its products greatly influence the success or failure
of the firm's marketing strategy.
Attitudes and attitude change are influenced by consumers personality and lifestyle.
Consumers screen information that conflicts with their attitudes. Distort information
to make it consistent and selectively retain information that reinforces our attitudes. IE
brand loyalty.
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There is a difference between attitude and intention to buy (ability to buy).
 Personality
All the internal traits and behaviors that make a person unique, uniqueness arrives
from a person's heredity and personal experience. Examples include:
o Compulsiveness
o Dogmatism
o Self confidence
o Friendliness
o Adaptability
o Ambitiousness
o Authoritarianism
o Introversion
o Extroversion
o Aggressiveness
o Competitiveness.
Traits effect the way people behave. Marketers try to match the store image to the
perceived image of their customers.
There is a weak association between personality and Purchase Behavior, this may be
due to unreliable measures. Nike ads. Consumers buy products that are consistent with
their self concept.
 Lifestyles
Recent US trends in lifestyles are a shift towards personal independence and
individualism and a preference for a healthy, natural lifestyle.
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Lifestyles are the consistent patterns people follow in their lives.
Example healthy foods for a healthy lifestyle. Sun tan not considered fashionable in
US until 1920's. Now an assault by the American Academy of Dermatology.
Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's
family, reference groups, social class and culture.
 Opinion leaders
Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay)
spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.)
Can be risky...Michael Jackson...OJ Simpson...Chevy Chase
 Roles and Family Influences
Role...things you should do based on the expectations of you from your position
within a group.People have many roles. Husband, father, employer/ee. Individuals role
are continuing to change therefore marketers must continue to update information.
Family is the most basic group a person belongs to. Marketers must understand:
o That many family decisions are made by the family unit
o Consumer behavior starts in the family unit
o Family roles and preferences are the model for children's future family (can
reject/alter/etc)
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o Family buying decisions are a mixture of family interactions and individual
decision making
o Family acts an interpreter of social and cultural values for the individual.
The Family life cycle: families go through stages, each stage creates different consumer
demands:
o Bachelor stage...most of BUAD301
o Newly married, young, no children...me
o Full nest I, youngest child under 6
o Full nest II, youngest child 6 or over
o Full nest III, older married couples with dependant children
o Empty nest I, older married couples with no children living with them, head in
labor force
o Empty nest II, older married couples, no children living at home, head retired
o Solitary survivor, in labor force
o Solitary survivor, retired
o Modernized life cycle includes divorced and no children.
Reference Groups
Individual identifies with the group to the extent that he takes on many of the values,
attitudes or behaviors of the group members. Families, friends, sororities, civic and
professional organizations. Any group that has a positive or negative influence on a
persons attitude and behavior.
 Social Class
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An open group of individuals who have similar social rank. Criteria: Occupation,
Education, Income, Wealth, Race, Ethnic groups and possessions.
Social class influences many aspects of our lives. I.e., upper middle class prefer
luxury cars Mercedes.
o Upper -upper class, .3%, inherited wealth, aristocratic names.
o Lower-upper class, 1.2%, newer social elite, from current professionals and
corporate elite
o Upper-middle class, 12.5%, college graduates, managers and professionals
o Middle Americans-middle class, 32%, average pay white collar workers and blue
collar friends
o Working class, 38%, average pay blue collar workers
o Lower Americans-lower class, 9%, working, not on welfare
o Lower-lower class, 7%, on welfare
Social class determines to some extent, the types, quality, and quantity of
products that a person buys or uses.
Lower class people tend to stay close to home when shopping, do not engage in
much prepurchase information gathering. Stores project definite class images.
Family, reference groups and social classes are all social influences on consumer
behavior. All operate within a larger culture.
 Culture and Sub-culture
Culture refers to the set of values, ideas, and attitudes that are accepted by a
homogenous group of people and transmitted to the next generation. Culture also
determines what is acceptable with product advertising. Culture determines what
people wear, eat, reside and travel. Cultural values in the US are good health,
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education, individualism and freedom. In American culture time scarcity is a growing
problem. IE change in meals. Big impact on international marketing.
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NEED AND IMPORTANCE OF THE STUDY
India is wide and large country, which is highly concentrated in rural society and spread
over 5, 65,742 villages, which is nearly about 70% of the overall population. Agriculture
is the main income source. Dairying is complementary to Agriculture income and playing
important role in the stability of rural economy. The cow was adored as the deity
Kamadenu with its milk as nectar for human life.
Milk and its product depute an important and compulsory part of daily life. From early
ages of human life milk is considered as the most significant and complete food among
all the food products. Milk gives energy, body building proteins, bone forming minerals,
vitamins, Lactose, fast and fatty acids, etc. Besides providing certain essential fatty acids,
it contains nutritional components for easy assimilation of food and digestion.
All these properties make milk an important food product in the universe.
As Indian Economy is predominantly agricultural dependent, Dairy and Animal
Husbandry from an important activity of its Economy. This dairying activity constitutes
10% of total G.D.P. Agriculture being a seasonal activity it cannot give regular income
throughout the year certain activities like dairying, sheep rearing, poultry, etc. are taken
up. Major part of the milk is produced in rural areas, but the demand for milk is mainly
from the urban area. Urban consumers receive milk through private milk vendors who
collect milk from rural areas i.e. village.
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Dairy in India was not in an organized manner till 1895. There were military dairies until
1940 with modern processing facilities like that of pilot dairy at Anand.
After independence in 1947 greater “Bombay Milk Scheme” was started and Airey milk
colony was established. Milk was supplied from Kaira District Co-operative Milk
Producer Union known as “Anand Milk Union Limited (AMUL)” to greater Bombay
Milk Scheme.
In 1951, Government started ‘Key Village Scheme’ to improve the productivity intensive
cattle development productivity of milk cattle under Five Year plan Scheme. Productivity
intensive cattle development Project was started through scientific breeding, feeding and
right management practices.
In 1960, under the pattern of greater “Bombay Milk Scheme” some state Governments in
India started milk supply schemes procuring milk from rural areas paying remunerative
price to the milk producers. Then dairying acquired national level recognition.
India has the largest cattle and buffalo population but its share of the milk production is
10% only. In India, the average animal milk capacity per cow is only 150 liters per year
and buffalo 50 liters per year. In some countries due to dairy development activities, the
average milk production per cow is 300 liters to 400 liters per year. In India at present
the level of milk consumption is only 19 ml per head while a healthy person requires at
least 21ml daily.
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In India, many problems arise in marketing of the milk. The main problems are lack of
adequate and timely supply of milk, poor quality and adulteration of milk leakage of
packets, high and low discrimination of prices.
Government of India adopts several measures to improve the marketing system, quality
and sales of milk in rural as well as in urban areas. Consequently, today most of the urban
areas covered by Dairy Co-operative Societies of their respective states.
Recognizing the nature of business, the dairy industry concerted into a commercial
institution of AP Dairy Development Corporation Limited in 1974. With a mission of
industrializing rural dairying, tapping and promoting the dairy industry with greater
development opportunities to the people of Andhra Pradesh.
Because of the changing scenario in the competitive environment in the last five years,
the role of Government and voluntary organization has been limited with a major focus
on private industry. Governing companies like Heritage, Cream line dairy, Ravila etc.
The role of NDDC and Vijaya Dairy has been subsided.
Keeping this in view and devised an effective marketing strategy for Vijaya Dairy with a
competitive orientation. “Warngal and Hanamkonda Milk Producer Co-operative Union
Limited” is one of the unit of Andhra Pradesh Dairy Development Co-operative
Federation Limited is selected.
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OBJECTIVES OF THE STUDY
This project is based on the study on consumer buying behavior towards “Vijaya Dairy
Milk”.
 The Main objective of the study is to know the consumer purchase
behavior towards Vijaya Dairy milk
 The study is to find out the various attributes in a product which results in purchase
 To identify level of consumer satisfaction and the consumer needs
 To study the factors affecting the consumer buying behavior
 To offer pertinent suggestions to the company in understanding consumer behavior
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SCOPE OF THE STUDY
As learning is a human activity and is as natural, as breathing. Despite of the fact that
learning is all pervasive in our lives, psychologists do not agree on how learning takes
place. How individuals learn is a matter of interest to marketers. They want to teach
consumers in their roles as their roles as consumers. They want consumers to learn about
their products, product attributes, potential consumers benefit, how to use, maintain or
even dispose of the product and new ways of behaving that will satisfy not only the
consumer’s needs, but the marketer’s objectives.
The Scope of My study restricts itself to the analysis of consumer buying behavior, with
special reference from “VIJAYA DAIRY MILK”, Warangal. The scope of my study is
also restricts itself to Warangal region only. And the study depends on psychological
aspects and the opinions may differ from one consumer to another.
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RESEARCH METHODOLOGY
This chapter describes the methodology of the study. This project is based on information
collected from primary sources. After the detailed study, an attempt has been made to
present comprehensive analysis of consumption of Vijaya Dairy Milk consumed by the
people. The data had been used to cover various aspects like consumption, consumer
buying behaviour and customer’s satisfaction regarding Vijaya Dairy Milk. In collecting
requisite data and information regarding the topic selected, I went to the residents of
Warangal and collected the data.
Survey design:
The study is a cross sectional study because the data were collected at a single point of
time. For the purpose of present study a related sample of population was selected on the
basis of convenience.
Sample Size and Design:
A sample of 100 people was taken on the basis of convenience. The actual consumers
were contacted on the basis of random sampling.
Research Period:
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Research work is only carried for 5 or 6 weeks.
Research Instrument:
This work is carried out through self-administered questionnaires. The questions included
were open ended, dichotomous and offered multiple choices.
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
 Primary Source: The primary data comprises information survey of “Consumer
Buying Behavior towards Vijaya Dairy Milk”. The data has been collected
directly from respondent with the help of structured questionnaires.
 Secondary source: The secondary data was collected from internet, References
from Library.
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Limitations of the Study:
 The survey is restricted to Warangal tri cities only.
 Since the Sample size is 100 and the data may not represent the accurate results.
 The views expressed by the consumers may not be 100% accurate.
 The time period of the project is only six weeks, which may not be sufficient for
the study
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DAIRY INDUSTRY
In the history of world dairying, the year 1998 has been a lucky year for India. We
have just emerged as the highest milk producing country in the world and that too in
the 50th year of our independents. Increasing the annual milk production from 20
million tones in 1970 to around 14 million tones in 1998 is no mean achievement.
Infact, it is unique success story of India’s dairy development contributed by the
small holders.
Our country has the largest bovine population in the world (195 million cattle and 77
million buffaloes). The results of White Revolution are quite visible with our per
capital milk consumption rising to 210 g per day inspite of the ever increasing human
population. All the has largely been a developmental agency of governmental, non-
governmental and cooperative institutions.
Indian deriving has over the years created an identify of its own. It has also
succeeded in having a competitive edge due, to its low-investment, energy-efficient,
cost Effective production system. A recent survey conducted by the Food and
Agriculture Organization (FAO) of the United Nations has declared India as the top
milk producer in the world, surpassing USA. The credit for enabling India to reach
this milestone goes to millions of small and marginal farmers and land less labourers
for their untiring efforts and the institutional support provided by the National Dairy
development board under the Operation flood Programmed. Here, a noteworthy
aspect is that India has achieved this coveted position without giving any incentive or
subsidy to it dairy farmers unlike most of the developed dairying nations.
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The dairy sector provides round-the-year employment which no other agri
business can do. Besides, it also provides a safety net to the weaker sections of our
society. But unfortunately this sector’s contribution to the Indian economy and its
growth potential have not yet been properly recognized. The industrial sector has been
regularly receiving several forms of subsidies and incentives since independence. The
agriculture sector too has its own share of privileges and subsidies. But, if one goes
through the budgetary allocations of all the plans made so far, dairying’s share is too
insignificant as compared to any other sectors. And, never any special incentive was
given to it. The dairy sector is also deprived of the special banking support as is provided
to the industrial as well as agriculture sectors.
EMERGING WORLD SCENARIO (Dairy Industry)
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Dairy Industry in the Emerging world Scenario:
Dairying has played a prominent role towards household nutrition security and
also in strengthening our rural economy. It has been organized as an instrument to bring
about socio-economic transformation. Also the dairying sector has helped national
economy by emerging as the largest milk producer in the world. The import dependent
Indian dairying soon become not only self sufficient but also poised for an export
oriented dairying nation. This has been primarily attributable to the implementation of the
Operation Flood Programme launched in 1970 under the aegis of the National Dairy
Development Board. The architect of the quite Revolution Dr. Kurien deserves special
compliments.
However, the gains of the White Revolution achieved through the cooperative
networking of the small and marginal farmers, and land less labourers are needed to be
sustained to cope with the rapid transformation that are now taking place consequent to
the GATT Agreement and establishment of the World Trade organization (WTO). In
future, international trade will be strongly regulated by the WTO regime. New ever and
stricgter Sanitary and Phytosanitary Standards are being framed for regulating quality
standards. Under these circumstances, our practices for production and processing milk
cannot stay at variance with the international standards.
EMERGING WORLD SCENARIO:
33
The Uruguay Round of Multi-lateral Trade Negotiations signed on 15th April. 1994 us
well as General Agreement on Tariffs and Trade (GATT) the world economies are
swiftly gearing to adjust with the situation arising due to the withdrawal of trade
subsidies. The major dairying countries of the world, which had heavily relied on these
subsidies, are now readjusting their internal economies in order to produce milk at the
competitive price. One sound economic principle guiding the trade globally is, "if a
commodity cannot be produced at competitive prices, it is wiser to import". Since such
changes were anticipated, most of the European Nations had the acumen of streamlining
their economies long back. The Eastern Europe has consciously reduced production of
milk from 39 MT in 1991 to 35 MT in 1998. In the same period, West Europe has
reduced milk. Production from 129 MT to 126 MT. Several other adverse factors, such as
the perceived image of production has led to a decrease in butter production on a global
basis. The world production of butter has declined from 5.03 MT in 1991 to 5.01 in
1997. Withdrawal of subsidies coupled with reduced demand of skim milk powder has
led to the decline of its production from 1500 MT to 1100 MT. It is paradoxical that as a
global impact of GATT, EU has resorted to conscious reduction of domestic milk
production, even though the demand for cheese and whole milk is rising. Consequently,
to fill up this gap, world trade of cheese has gone up from 950MT to 1300 MT during
1993-96. There has also been an increased from 1050 MT to 1300 MT in the global of
whole milk Powder.
EMERGING TRENDS IN MILK PROCESSING:
34
With the changing declining trends in the domestic/export markets as well as
profits for conventional dairy products, such as milk powder, butter etc., need for product
diversification that permits value addition, long life-cycle and greater income has become
quite obvious. Growing awareness towards the beneficial role of milk and milk products
in maintaining normalcy of human health has led to the development of a new range of
functional floods, also called 'health foods' or 'nutraceutical' or even 'mood
elevating/refreshing foods'. It is widely recognized that components derived from milk
such as immunoglobulin, lactoperoxidase, lactoferrin, lysozyime, vitamin binding
proteins etc, play an 'extra nutritional' which are formed during the passage through
digestive tract. Fermented milk products such as yogurt in particular provide beneficial
microbes, which favorably influence the microbial ecology of the gut-system. These, in
turn, effect various biochemical functions to protect human health. Biotechnology has
been successfully employed to develop genetically modified strains of dairy cultures that
tend to reduce risks of enteric infections, hypercholestemia,, rate of proliferation of an
cancer cells as well as augment immune system besides offering may other health
promoting attributes. The dairy industry in advanced countries is rapidly diversifying its
product mix to produce arrange of dairy foods that is targeted to reduce the role of
medicine in maintaining normalcy of dairy foods that is targeted to reduce the role of
medicine in maintaining normalcy of human health. Japan the world leader in this sector.
where the current market of US$ 5.5 billion is still last growing. In the USA 11 billion.
Hence, biotechnology, Bioengineering and food science offers new opportunities to
Industry, which we must capitalize through, required R&D efforts, both in the public and
private sectors.
35
Dairy industry is also fast diversifying to develop special food ingredients derived
from milk. Which can be deployed advantageously to improve the sensory quality
attributes. These include fractionated casemates whey protein concentrates, enzymatic
hydrolyses prepared by employing innovative energy efficient unit processes. Packaging
is another area, which is receiving intensive R&D inputs for developing low cost,
biodegradable materials to prevent further damage to the environment and ensure greater
food safety.
However, greater challenge lie before the Indian dairy industry in modernizing the
unorganized sector engaged in the preparation of wide range of indigenous milk products.
Intensive scientific, R&D and financial input are necessary to develop industrial
manufacturing and packaging system. Apart from the development of
continuous/mechanized systems for industrial production of ghee, khoa, gulabjamun,
shrikhand and burfi, very little progress had been made in this area. The weakest link is in
developing appropriate packaging systems that may conform to the international
standards of product safety, shelf life and labeling requirements. It is in this context, India
is yet to take advantage of UHT technology, which could otherwise help in minimizing
post-harvest losses and also accord greater physical access in remote and difficult areas.
36
INDIA’S CHANGING SCENARIO (Dairy industry)
India's competitiveness:
Livestock sector is the backbone of India's economy in terms of income
employment equality sustainability and foreign exchange earnings. By virtue of
traditional practice of utilizing the crop resides as feed for the milk animals, India has
been able to achieve milk production of 70 million MT at a very competitive 'Farm Gate
Milk Price’ on global basis. India enjoys competitive edge over Newzealand, Australia
and the USA of being able to produce milk at a lower cost. Livestock products have
registered a compound growth rate of 5.26% per annum, during the preceding decade.
Milk and milk products account for 66% of the total value of livestock products. Another
noteworthy feature of Indian dairy scenario is that all the milk is produced by a very large
number of milk animals having low productivity. Thus, only marginal improvement ion
animal productivity is capable of making a substantial impact. On the other hand. in the
technologically advanced countries, even small targets for increased milk production
present major challenge, since animals have already attained their maximum genetic
potential and the production systems have also been optimized.
India has well-organized dairy infrastructure of 7,800 rural milk cooperatives and
a processing capability of abut 12million litre per day in about 280 dairy plants. India has
a strong HRD capability to meet the multi sectoral requirement of the dairy industry.
India has generated very valuable experience and competence in treopical dairying,
which can serve as model for developing countries. In particular, India has developed a
very precious R & D reservoir for buffalo; milk processing. This provides opportunities
37
for export of technologies to partner countries through an integrated approach for
accessing remunerative markets.
With the liberalization of world economies, Indian dairy industry has also
ventured to explore the export markets. A rather modest, beginning has been made
through exports of milk powders, being Rs. 318.5 to 22 countries, mainly Bangladesh,
Srilanka, Nepal, UAE, the Philippines and the Netherlands
PROSPECTS OF CHEESE PRODUCTION IN INDIA
Cheese has the potential of emerging as the No. 1 dairy product in India, with its
present estimated demand of 1800 tones projected to rise to 30000 tonnes by 2000 AD.
The global cheese market is also beckoning the Indian producers. For, after the WTO
enforced withdrawal of the milk producer subsidy, European producers would Fine it
difficult to market cheese at competitive prices.
Prospects of cheese production in India is quite bright. This is because of the fact
that cheese has all the attributes of an ideal dairy product. Cheese is a fermented dairy
product. Fermentation has occupied a place of pride in the food preservation practices
from time immential. It improves nutritional value and enriches the flavor, body and
texture of the product. Fermented milk products have been reported to have therapeutic.
Anticarcinogentic and anticariogenic properties.
Cheese represents a balanced food with concentrated from of energy and good
quality? protein. As such, it is only food, which could prove to be an appropriate
substitute to non-vegetrial diet. Cheese has high food and nutritive value. It is an
excellent source of high quality protein, rich source of calcium and phosphorous, an
38
excellent source of several fat-soluble vitamins. To consumers, it provides good
nutrition, variety. Convenience for use. Portability, food safety and novelty of flavor and
texture.
Process cheese spread and slices have proved to be an ideal bread-mate. The
consumption of bread is increasing very fast in India. Butter, the traditional spread for
bread, is not avoided because of its high fast content. The other conventional spread like
jam and jelly are considered as junk food. Thus it is the cheese, which can provide
nutritionally sound spread for bread.
STEPS INVOLVED:
Milk is procured from the farmers by the dairy units and goes through various
tests and processed to obtain good satisfactory results from the consumers. It involves the
following steps.
 Testing
 Chilling
 Pasteurization and chilling
 Packaging
TESTING:
39
Milk procured undergoes through various tests such as:-
 Ph Test: The Ph value gives the measure of the time acidity of milk. Generally ph
ranges from 6.6-6.8. milk over ph 6.9 is considered as suspicious of disease or
lactation of milk.
 Acidity Test: It is used lo find out the quality and heat stability of
milk and also to check the content of lactic acid present in it.
 Sedimental Test: It presents a rapid and quantitative means indicating the
cleanliness of milk as regards to visible dirt.
 Alcohol Test: It is made to detect whether milk has tendency to curdle during the
sterilization process.
 On Boiling Test (COB): COB test is meant to have final confirmation of the quality
of milk. Since, with high acidity and salt content clots on boiling due to precipitation
of protein it is rejected.
 Fat test: It is conducted to estimate the fat percentage present in the milk
that is procured form the farmers.
CHILLING:
Milk procured from various areas throughout the settle from framers is brought to
their respective dairy units by solo milk tanker, where the milk is chilled. Milk is chilled
to very low temperatures so that it last longer and does not perish. This is very important
for milk storage, as it can be stored at very low temperatures only.
PASTEURIZATION AND CHILLING:
40
Pasteurization is a process where milk is churned at. high speed and sterilized by
heating at high temperatures. Here the milk is made free from derived amount of fats,
edible oils and also disease causing germs after pasteurization process. Chilling process
takes place for longer storage of milk.
PACKAGING:
It is a technique of using most appropriate container to protect, carry, identify and
merchandise any product. Manufacturer desires his product to reach in safe delivery to
the consumers through the various stages of ; manufacture, storage, transport,
distribution and marketing. The packaging of any product is judged as follow:
 It must protect and preserve the commodity until it reaches the consumers.
 It must be suitable for selling and distribution system.
 It must attractive to the consumer.
 Easy to open, store and dispose.
 Reasonable in cost.
41
ATTRIBUTES
Many products are obtained from milk. They are:
 CREAM: It is obtained from cow or buffalo milk or of a combination there of which
separated from it by means of centrifugal force, where milk is rotated at the high
speed with which, the cream moves away from the axis. This cream is generated
during the rotation and is taken from the sides of the separator. Generally the fat
content in the cream is of the 25% taken from the sides of the separator. Generally the
fat content in the cream is of the 25%.
 BUTTER: Butter is a fat rich product containing about 80% of milk fats while the
rest is a water, salt curd and also colour is added to some types of the butter and
cooking butter.
 GHEE : It is the most important ingredient- in day life of nay Indian. Ghee is the
pure clarified fat derived solely from milk or curd or from desibuytter or from cream
to which no coloring or preservative is added. It is obtained by pre-stratification
method i.e.. Rise in temperature of milk to I 10-120c. the shelf life is 6 months only.
 CHEESE: It is obtained by draining after coagulation of milk with a harmless milk
cultures. It has a minimum of 42% of milk fat. The most common cheese used is the
cheddar cheese. It is hard, ripened cheese made from pasteurized milk to which small
amount of lactic is added. The shelf life of cheese is 4-6 months only.
42
 FROZEN PRODUCTS: The most common frozen products that water one's mouth
arc ice creams, kulfi and choc-bar. These are obtained from cow or buffalo milk or
combination there of or from cream. They have 10% milk fat and are prepared with
mixtures of dry fruits of nuts or both to have an excellent taste. These frozen products
are cooled below 4c only. The shelf life of froze products l-2rnonths only.
INDIGENOUS DAIRY PRODUCTS;
 PANEER: It is obtained from cow or buffalo milk or combination thereof by
precipitation with sour milk and lactic acid. The milk fat content is a minimum of
50% of the product.
 KHOA: It is obtained from cow or buffalo milk or a combination there of by rapid
drying. The milk fat content in a khoa is 20% product.
 DAHI : Dahi or commonly called curd is obtained from boiled milk by souring,
natural or otherwise, by a harmless lactic acid or bacterial culture.
 DRIED MILK : It is milk powder, which is prepared by spray drying of
fresh skimmed milk of cow or buffalo or a mixture thereof. It when mixed with water
becomes milk. Its shelf life is up to a period of 9 months.
43
SALES:
India is currently the second largest milk producer in the world after the USA
milk production has increased from 23 m MT in the years 1972-73 to 58.6 m MT in
1992-93 i.e a rise of 150% over a period of 20 years, this phenomenal rise of the dairy
sector in Indian can largely be attributed to the successful implementation of the
"operation flood" program space under NDDB.
In AP major quantity of milk is procured from CHITTOR and VIJAYAWADA
districts. During the 'FLESH' season (SEP-MAR) and 'LEAN' season (Apr-Aug) of every
year, maximum and minimum amount of milk is respectively procured, Finally country's
milk export is low due to exploitation of farmers and improper utilization of sources.
VIJAYA DIARY
44
PROFILE OF WARANGAL DAIRY:
This chapter gives detailed information about the development availability under
taken by Warangal Dairy and the existing management system of Warangal Dairy etc.
It is also contains of a fries profile of Warangal Dairy.
In Warangal districts around 60% of the population depends on agriculture of
their livelihood. It also has a tourist with a range of 3.7 lakhs hectors.
In Warangal district different types of cattle breed are found. There are certain
types of buffaloes in the District, according to the Animal husbandry department.
The buffalo living in Warangal are apart from production of milk, cattle’s are used for
agricultural purpose.
There is a Dairy plant in Warangal town and foremilk chilling centre, each at
Thorrur, Mulugu, Narsampet and Jangaon. Their milk chilling centres collect milk
from collection centres in the villages. The collected milk is chilled at the concerned
chilling centre and it is transported to the Warangal Dairy. The processed milk at
Warangal Dairy is marketed to the milk consumers in the tri-city of Warangal,
Hanamkonda and Kazipet in the form of distribution.
Warangal is considered as Municipal Corporation which covers the entire area of
Warangal city and some sub urban areas like Hasanparthy etc., it covers there towns
mainly Warangal, Hanamkonda and Kazipet. Warangal is considered the centre of
trade while Hanamkonda was famous for Government offices and educational
Institutions. The importance of Kazipet because of it’s being Railway Junction.
45
DAIRY DEVELOPMENTACTIVITIES IN WARANGAL
DISTRICT:
In Warangal District Organizational attempts to procure and distribute milk in the
year 1968. Milk supply of farmers of Warangal District was formed in Organized
Co-operative sector under the intensive milk supply scheme; these activities were
looked alter by the State Government Department of agriculture and Animal
Husbandry. Under this scheme a medium size of Dairy was sanctioned with a
capacity of 12,000 litres per day, when the State Government has established the
Dairy development in 1970. Warangal Dairy has bought under its shadow. Again
when the state government established Andhra Pradesh Dairy Development co-
operation limited (APDDC LTD) Warangal Dairy came under their control. The
Government of Andhra Pradesh has decided to implement operation Flood-II
Programme in the state. A.P.Organization structure of APDDCF Ltd., from 1981
onwards. At present Warangal is under the supervision and control of APDDCF Ltd.
To meet the requirement of procedure as well as consumers in Warangal town, a
bulk cooler is installed at that period with the installation of cooler, milk supply to the
Warangal was started on 10th March 1969. The construction of building and
installation of plant and machinery was completed in 1971. Dairy opening ceremony
was help on September 1971. It was speed over as area of 5 acres and 24 guntas.
The cost of construction was more than Rs. 20 lakhs. An initial stage milk automatic
bulk machine with a capacity of 5,880 bottle per hour was installed. In the year 1982
the pre packed machined was instandand milk is now being supplied in polythene
sachets. At present there are two pre packed machines functioning each with a
46
capacity of 5000 milk sachets per hour. The milk in Warangal is distributed through
more than 100-booth need over the tri-city of Warangal. In addition to this milk is
also being supplied on credit to instructors like hospitals, hotel, Railways, canteen
and Central Jail etc., Relating to this Warangal Dairy has there Dairy parlors for
selling milk products like whole milk powder, ghee, butter, cheese etc.
OBJECTIVE OF THE WARANGAL DAIRY ORGANIZATION:
47
Warangal Dairy Organization is using “VIJAYA” Brand labels to sell their
products to the consumers wherein some other states, the Dairy federation is using
“AGMARK” Brand to market their products.
Warangal Dairy is a District level unit and all the policy decisions are taken at the
head office level. Warangal unit is only a functioning unit, which operates the work
to achieve the objection of Dairy federation.
OBJECTIVES OF WARANGAL DAIRY:
 To provide the good market for all rural as well as urban markets.
 To create awareness among Vijaya brand products like milk.
 Supply of pasteurized milk to the people of Warangal, Hanamkonda and Kazipet at
reasonable price.
 To increase the sales by improving the quantity of Vijaya brand milk.
 To avoid the distance and convenience of customer.
 To educate people to buy milk (Vijaya) through advertisement and marketing.
 Fulfillment of social obligation.
DISTRIBUTION METHODS IN WARANGAL DAIRY:
48
Distribution of milk is done through three methods. They are
- Cash Sales method
- Advance Sales method
- Credit Sales method
The milk sales are being conducted in the tri-cities of Warangal, Hanamkonda and
Kazipet through 98 booths is a Credit Institutions. The sales have reached now up to
15,000 litres per day. For prompting sales of company product the study of consumer
behaviour is inevitable or compulsory. Marketing manager should take decisions
regarding. Brand, discount, packaging, commission, advertising policy, gifts, free
samples etc., by studying consumer behavior.
MILK AND MILK PRODUCTS:
Today APDDCF offers the widest spectrum of milk products in India, under the
brand name “VIJAYA”. These include Ghee, Bhutter, Processed Cheddar, Chese and
Cheese spread, UHT Milk, flavoured milk, slim milk in Tetra packets, sterilized
Cream, Skim milk powder, Dairy Whitener, cooking butter and ice cream. Several
among these carry the Agmark, an attestation of quality by Government of India and
the ISI mark of Bureau of India standards. The brand “VIJAYA” denotes quality &
quality, which makes it a trusted name in millions of house hold across the country.
In addition, APDDCF also manufactures products such as sterilized favour milk,
apnner, Doodh peda and Dairy parlours and a chain of retailers spread across Andhra
Pradesh.
ORGANIZATIONAL STRUCTURE:
49
With a strong desire to develop the dairy industry in the state, involving the milk
procedures in organizing the procurement production, processing and marketing of
the milk produced in rural areas. For this purpose, the Government of Andhra
Pradesh has taken a decision to convert the Andhra Pradesh Dairy Development
Corporation Limited into Andhra Pradesh Dairy Co-operative Federation Limited
(APDDCF LTD) on 5th September, 1981. For the administrative convenience of
APDDCF its organization structure formed into milk sheds in 25 Districts of Andhra
Pradesh. Each milk shed is under the charge of a Joint Director or a Deputy
Director.
District Level
Three-tier Dairy Co-operative Structure
APDDCF
Milk
Unions
Milk Producers co-op
societies
State Level
Village Level
Apex Body
Unions
Societies
50
In Andhra Pradesh the Co-operative sector is having 3 tiers. It is having societies.
Union and federations. They are,
 At village level, milk producers Co-operative societies.
 At District level, milk producers Co-operative Unions.
 At State level Co-operative milk producers federation.
Out of 23 Districts of Andhra Pradesh, Operating, Flood-II Programmed is being
conducted in 16 districts. The 7 Districts, which are not covered under this program,
are Adilabad, Karimnagar, Warangal, Khammam, Mahaboobnagar, Nellore and
Ananthapur. This program cannot be adopted in these Districts because their daily
procurement is less than 20,000 liters per day.
Today, Dairy Industry in Andhra Pradesh has emerged as a powerful instrument of
socio-economic change. There are 63 Dairy units in different parts of the state
including 48 milk chilling centres, 9 District Dairies and 6 milk product factories
About 6,400 villages co-operative Societies are procuring milk from 11,900 villages
among 286 routes. It is estimated that 5 lakhs milk producing families and 24 lakhs
consumers are benefited by the activities of the APDDCF. The dairy Industries
concentrating on increasing the procurement was 636 lakh liters. It is increased to
2.52 lakh liters in the year 1985-1986 and it has increase enormously in 1992, 1993 to
the effort of 8,000 lakh liters per day. In the present year 2006-07, the dairy
industries concerning on the increasing procurement was above 50, 000, 00 lakh liters
per day.
51
Table 3.1
BRAND OF MILK PREFERRED TO PURCHASE
S.No Brands No. of Respondents % of Respondents
1 Vijaya 35 35%
2 Jersey 15 15%
3 Mulkanoor 40 40%
4 Others 10 10%
Total 100 100%
Vijaya
35%
Jersey
15%
Mulkanoor
40%
Others
10%
The above graph depicts that majority of respondents (40%) are prefer the Mulkanoor, 35
of respondents are preferring Vijya Milk.
52
Table 3.2
MODE OF PURCHASE
S.No Attributes No. of Respondents % of Respondents
1 Milk Vendors 35 35%
2 Milk Dealers 20 20%
3 Retail Stores 45 45%
4 Others 0 0%
Total 100 100%
Milk Vendors
35%
Milk Dealers
20%
Retail Stores
45%
Others
0%
From the above graph, it is observed that 45% of respondents are buying the Milk from
Retail stores, 35% are buying the Milk from Milk Vendors.
53
Table 3.3
FORM OF MILK FOR CONSUMPTION
S.No Attributes No. of Respondents % of Respondents
1 Loose Milk 35 35%
2 Packet Milk 48 48%
3 Both 17 17%
Total 100 100%
Loose Milk,
35
Packet
Milk, 48
Both, 17
The above graph shows that 48% of respondents are buying the milk in Packet form, 35%
of respondents are in Loose Milk.
54
Table 3.4
MODE OF COMMUNICATION
S.No CHANNELS No. of Respondents % of Respondents
1 Advertisement 0 0%
2 Retail Stores 75 75%
3 Neighbors / Friends 25 25%
Total 100 100%
Advertisemen
t
0%
Retail Stores
75%
Neighbors /
Friends
25%
From the above graph, it is known that 75% respondents are came to know about Milk
from Retail Stores, 25% of respondents are came to know by Neighbor/Friends and
Advertisement.
55
Table 3.5
QUANTITY OF MILK CONSUMED (DAILY)
S.No Attributes No. of Respondents % of Respondents
1 ½ Lit 45 45%
2 1 Lit 35 35%
3 1 ½ Lit 8 8%
4 2 Lit 12 12%
Total 100 100%
½ Lit, 45
1 Lit, 35
1 ½ Lit, 8
2 Lit, 12
The graph indicates that 45% of respondents are consuming ½ Ltr Milk, 35% of
respondents are consuming 1 Ltr Milk.
56
Table 3.6
ATTRIBUTES COMPELLING TO PREFER MILK BRAND
S.No Attributes No. of Respondents % of Respondents
1 Margin 35 35%
2 Quantity 30 30%
3 Demand 10 10%
4 Brand Image 25 25%
Total 100 100%
Margin, 35
Quantity, 30
Demand, 10
Brand
Image, 25
The graph depicts that 35% of respondents are compelled to buy the Milk by Margin as
main attribute, 30% of respondents are Quantity as main Attribute.
57
Table 3.7
PREFERANCE TO BUY THE VIJAYA BRAND FOR EVER
S.No Options No. of Respondents % of Respondents
1 Yes 65 65%
2 No 35 35%
Total 100 100%
Yes
65%
No
35%
The graph depicts that 65% of respondents are willing to continue the Vijaya Milk
forever, 35% of respondents are not willing to continue the Vijaya Milk.
58
Table 3.8
OPINION ON QUALITY OF VIJAYA BRAND MILK
S.No Opinion No. of Respondents % of Respondents
1 Excellent 15 15%
2 Good 35 35%
3 Average 45 45%
4 Poor 5 5%
Total 100 100%
Excellent
15%
Good
35%
Average
45%
Poor
5%
The above graph shows that 45% of respondents are saying Quality of Vijaya Milk is
Average, 35% are saying well.
59
Table 3.9
PURPOSE OF CONSUMING THE MILK
S.No Attributes No. of Respondents % of Respondents
1 Tea/Coffee 45 45%
2 Feeding Children 30 30%
3 Curd 15 15%
4 All 10 10%
Total 100 100%
Tea/Coffe
e
45%
Feeding
Children
30%
Curd
15%
All
10%
The graph depicts that 45% of respondents using the milk for the purpose of Tea/Coffee,
30% are for the purpose of Feeding Children.
60
Table 3.10
ROLE OF ADVERTISING IN PROMOTING MILK BRANDS
S.No Options No. of Respondents % of Respondents
1 Yes 65 65%
2 No 35 25%
Total 100 100%
Yes
65%
No
35%
Graph shows that 65% of respondents are saying that advertisement plays a role to
promote the milk brands, 35% are saying no.
61
Table 3.11
PROBLEMS ENCOUNTERED IN USAGE MILK BRAND
S.No Options No. of Respondents % of Respondents
1 Yes 20 20%
2 No 80 80%
Total 100 100%
Yes
20%
No
80%
The graph shows that 20% respondents are facing the problem while consuming of Milk,
80% of respondents are not facing any problem.
62
Table 3.12(1)
ADOPTION OF OTHER BRAND
Opinion No. of Respondents % of Respondents
YES 95 95%
NO 05 05%
Total 100 100%
IF YES
Table 3.12(2)
Opinion No. of Respondents % of Respondents
Jersey 30 30%
Mulkanoor 50 50%
Others 20 20%
Total 100 100%
YES
95%
NO
5%
Jersey, 30
Mulkanoor,
50
Others, 20
The above graphs depicts that 95% respondents are changing their brand and they will
prefer 50% Mulkanoor and 30% of respondents will prefer Jersey.
63
Table 3.13
OPINION ON PRICE OF VIJAYA MILK
S.No Reasonable respondents percentage
1 yes 75 75%
2 No 25 25%
total 100 100%
yes
75%
No
25%
Most of the people i.e, 75% of people accepted that Vijaya milk price is reasonable.25%
of the people don’t accept the price of Vijaya milk.
64
Table 3.14
NEED FOR CHANGES IN VIJAYA BRAND Milk
Quantity
0%
Quality
10%
price
15%
Service
75%
Most of the people i.e, 75% people want changes in Vijaya milk product,15% of the people
want change in price of Vijaya milk.
S.No Change Options No. of Respondents % of Respondents
1 Quantity 0 0%
2 Quality 10 10%
3 price 15 15%
4 Service 75 75%
Total 100 100%
65
CONCLUSIONS:
 Majority of the respondents are using packet milk.
 Most of the respondents are prefer to purchase Mulkanoor.
 Majority of the respondents are consuming milk for tea/coffee and
feeding children.
 Maximum no of respondents consume ½ liter milk.
 Most of the respondents are preferring packet milk.
 Maximum of the respondents are aware of vijaya milk through kirana, general
stores and neighbors.
 Most of the respondents accepted that vijaya milk price is reasonable.
 Most of the respondents feel that vijaya milk is having quality.
 Majority of the respondents change their brand when vijaya milk not available
in the market.
 Majority of the respondents want changes in vijaya milk product
.
66
SUGGESTIONS:
1. Vijaya Dairy should concentrate more on quality to improve the sales of product.
2. The Organization should improve the sales of product, more advertising can be
used.
3. Look out for strategies, which will help in being different from the competitors
like having catchy “ PUNCH LINES” which could attract the customers
4. The Vijaya Dairy should improve on availability and distribution of milk
5. The Organization can provide the milk booths to convince the customers in
different locality.
6. As Mulkanoor is consumed by many people so the Vijaya Dairy Milk should
maintain some strategies to improve the Sales in market.
7. Print date of packing on the sachets in order to discourage the supply of old stock
67
QUESTIONNAIRE
DearRespondent,
I am student of MBA (Marketing) of BALAJI INISTITUTE OF
TECHNOLOGY & SCIENCES,NARSAMPET,WARANGAL(AP) .I am doing a Project
on “CONSUMER BUYING BEHAVIOR” Towards VIJAYA DAIRY MILK.
PERSONALINFORMATION
NAME:
AGE:
PLACE:
EDUCATION:
1) WHICH IS THE BRAND OF MILK YOU PREFER TO PURCHASE?
a) Vijaya Dairy
b) Jersey
c) Mulukanooru
d) Other
2) HOW DO YOU GENERALLY BUY THE MILK?
a) Milk Vendors b) Milk dealers c) Milk booths
3) IN WHICH FORM YOU WOULD LIKE TO BUY YHE MILK?
68
a) Loose milk b) Packet milk c) Both
4) HOW DO YOU CAME TO KNOW ABOUT VIJAYA BRAND MILK?
a) Advertisements
b) General Stores
c) Neighbors
d) Others
5) HOW MUCH QUANTITY OF MILK DO YOU CONSUME DAILY?
a) ½ Liter
b) 1 Liter
c) 1 1/2 Liter
d) 2 Liter
6) WHICH ATTRIBUTE COMPELS YOU TO PREFER A PARTICULAR MILK
BRAND?
a) Margin
b) Quantity
c) Demand
d) Brand Image
7) DO YOU PREFER TO BUY THE VIJAYA BRAND FOR EVER?
a) Yes
b) No
8) IF YES/NO PLESE GIVE REASON
____________________________________________________________
9) WHAT IS YOUR REASONS IN QUALITY OF VIJAYA BRAND MILK
IS____
a) Excellent
b) Good
c) Average
d) Poor
69
10) FOR WHICH PURPOSE DO YOU CONSUME THE MILK?
a) Tea / Coffee
b) Feeding Children
c) Curd
d) All
e) Other
11) DO YOU THINK ADVERTISING PLAYS ANY ROLE IN PROMOTING
MILK BRANDS_______
a) Yes
b) No
12) IF YES IN WHAT WAY
____________________________________________________________
13) IS THE PRICE OF THE VIJAYA MILK IS REASONABLE?
(A)Yes (B) No
14). DO YOU NEED ANY CHANGES IN VIJAYA PRODUCT?
(A)Quantity (B) Quality
(C)Price (D) Service
15) DID YOU FACE ANY PROBLEMS WHILE CONSUMING THE VIJAYA
BRAND MILK?
a) Yes
b) No
16) IF YES, PLEASE GIVE REASON / WHAT TYPE OF PROBLEM?
___________________________________________________________________
70
17) IF VIJAYABRAND IS NOT AVAILABLE IN YOUR AREA, THEN WILL
YOU CHANGE YPUR BRAND?
(A)Yes (B) No
18) IF YES WHICH BRAND DO YOU PREFER?
(A) Swakrushi (B) Thirumala (C) Vyshnavi
(D) Telangana (E) Mulkanoor (F) Others
19) PLEASE OFFER ANY SUGGESTIONS TO IMPROVE THE QUALITY AND
SALES OF VIJAYA BRAND MILK?
_________________________________________________________________
71
Bibliography
1. Philip Kotler, “Marketing Management”, Pearson Publishers, 12th Edition, New
Delhi.
2. Leon Schifman & Lesile Lazer Kanulk, “Consumer Behavior” Eastern Economy
Edition Publishers 8th Edition, New York.
3. C.R. Kotari, “Research methodology”, Kalyani publishers, New Delhi, 1972.
4. S.J. Bedker and G.C. Berry, “Marketing Research” 1st Edition, Oxford
University.
References :
www.apdairy.com
www.nddb.com
www.apddcf.govt.in

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Priyanka

  • 1. 1 Summer Training Report On CONSUMER BUYING BEHAVIOUR TOWARDS VIJAYA DAIRY MILK Submitted in partial fulfillment of requirements for the award of the degree of Masters in Business Management Session : 2018-2020 Under Supervision of: Submitted by: Mrs. Jyoti Uppal Priyanka HOD Professor MBA H.I.M.T., Rohtak Roll NO. HINDU INSTITUTE OF MANAGEMENT & TECHNOLOGY MAHARSHI DAYANAND UNIVERSITY, ROHTAK
  • 2. 2 DECLARATION I, Priyanka, Roll No. of MBA Semester 3 of Hindu Institute of Management & Technology, Rohtak, hereby declare that the project entitled Consumer Buying Behaviour in Name of company is an original work and the same has not been submitted to any other institute for award of any other degree. The interim report was presented to the supervisor on ……………….and the pre-submission presentation was made on……………….. The feasible suggestions have been duly incorporated in consultation with the supervisor. Counter signed Signature of the Candidate Mrs. Jyoti Uppal Tarn Sharma HOD Professor, HIMT Director of the Institute
  • 3. 3 ACKNOWLEDGEMENT "Gratitude is not a thing of expression; it is more a matter of feeling." There is always a sense of gratitude which one express for others for their help and supervision in achieving the goals. We too express my deep gratitude to each and everyone who has been helpful to us in completing the project report successfully. We would like to thank almighty God for blessing showered on us during the completion of Dissertation Report. First of all, we are highly thankful to Dr. Monika (Director HIMT-ROHTAK) for allowing us to pursue our Dissertation Report on "Ranking of Mutual Fund". We give our regards and sincere thanks to Mrs. Jyoti Uppal (Project guide) who has devoted her precious time in guiding us & helping us complete it within time. We feel self-short of words to thanks our parents and friends who had directly or indirectly instrumental in the completion of the project. We are indebted to all respondents for their time passion during the long conversations. Priyanka
  • 4. 4 TABLE OF CONTENTS DECLARATION ACKNOWLEDGEMENT EXECUTIVE SUMMERY Chapter 1: INTRODUCTION Introduction OBJECTIVE OF THE STUDY Significance of the study Chapter 2: Review of Literature Chapter 3: COMPANY PROFILE  ABOUT BATA INDIA LIMITED  BATA INDIA LTD. EXPORTS  COMMITMENT TO SERVICE  BATA LEADERSHIP POINTS  BATA RANGE OF PRODUCTS  PRODUCT PROFILE Chapter 4: RESEARCH METHODOLOGY  RATIONALE BEHIND THE STUDY  RESEARCH DESIGN  HYPOTHESIS  LIMITATIONS Chapter 5: DATA ANALYSIS AND INTERPRETATION  SWOT ANALYSIS OF BATA  EVALAUTAION OF MARKETING STRATEGIES OF BATA INDIA LTD. Chapter 6: CONCLUSIONS AND LIMITATION
  • 6. 6 INTRODUCTION Everyday we are coming across with television advertisements, newspaper commercial direct mails and sales calls. Someone is always trying to sell something. Anything that can be offered to a market for attention, acquisition use or consumption that might satisfy want or a need it includes physical object, services and persons places, organization and ideas. To satisfy their needs and wants of the people who are depending on market where transaction take place. People are participating in marketing by satisfying their needs and wants through exchange. Exchange is an act obtaining a desired object from someone by offering and something in returns. Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating and exchanging products and values with others. Activities such as product development research. Communication, distribution, pricing and services are Core Marketing activities If a market do good job of understanding consumer needs, develop products.That provide superior values and prices, distribution and promotes them effectively, these products will sell very easily.
  • 7. 7 Peter F Drucker: A Leading Management thinker put them in this way, “Aim of marketing is to make selling superfluous. The aim is to know and understand the customer so well that the product or service fits and sells itself. Outstanding Marketing companies stay close to customer”. Duddy &Rerzon: “Marketing is the economic process by mean of which goods and services are exchanged and their values determined in terms of money prices”. American Marketing Association : “ Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods , services to create exchanges that satisfy individual and organizational goals “
  • 8. 8 INTRODUCTION TO CONSUMER BUYING BEHAVIOR An important part of the marketing process is to understand why a customer or buyer makes a purchase. Without such an understanding, businesses find it hard to respond to the customer’s needs and wants. Marketing theory traditionally splits analysis of buyer or customer behaviour into two broad groups for analysis – Consumer Buyers and Industrial Buyers Consumer buyers are those who purchase items for their personal consumption Industrial buyers are those who purchase items on behalf of their business or organization. Businesses now spend considerable sums trying to learn about what makes “customers tick”. The questions they try to understand are: •Who buys? •How do they buy? •When do they buy? •Where do they buy? • Why do they buy? For a marketing manager, the challenge is to understand how customers might respond to the different elements of the marketing mix that are presented to them. If management can understand these customer responses better than the competition, then it is a potentially significant source of competitive advantage.
  • 9. 9 Definition of Buying Behavior Buying Behavior is the decision processes and acts of people involved in buying and using products. Need to understand:  Why consumers make the purchases that they make?  What factors influence consumer purchases?  The changing factors in our society. A firm needs to analyze Purchase behavior for:  Buyers reactions to a firms marketing strategy has a great impact on the firms success.  The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.  Marketers can better predict how consumers will respond to marketing strategies.
  • 10. 10 Stages of the Consumer Buying Process Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity. The 6 stages are: 1. Problem Recognition(awareness of need) Difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes. 2. Information search o Internal search, memory. o External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc. o A successful information search leaves a buyer with possible alternatives, the evoked set. o Hungry, want to go out and eat, evoked set is o Chinese food o Indian food
  • 11. 11 3. Evaluation of Alternatives Need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives. 4. Purchase decision Choose buying alternative, includes product, package, store, method of purchase etc. 5. Purchase May differ from decision, time lapse between 4 & 5, product availability. 6. Post-Purchase Evaluation Outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an Indian meal, may think that really you wanted a Chinese meal instead.
  • 12. 12 Types of Consumer Buying Behavior Types of consumer buying behavior are determined by:  Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation.  Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. The four types of consumer buying behavior are:  Routine Response/Programmed Behavior Buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc.  Limited Decision Making Buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand.  Extensive Decision Making/Complex high involvement Unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend a lot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process.
  • 13. 13  Impulse buying, no conscious planning. The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.
  • 14. 14 Factors that influence the ConsumerPurchase Decision making Process A consumer, making a purchase decision will be affected by the following three factors: 1. Personal 2. Psychological 3. Social The marketer must be aware of these factors in order to develop an appropriate MM for its target market. Personal Unique to a particular person. Demographic Factors. Sex, Race, Age etc. Who in the family is responsible for the decision making. Young people purchase things for different reasons than older people. Psychological factors Psychological factors include:  Motives: A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal. Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix.
  • 15. 15 MASLOW hierarchy of needs!! o Physiological o Safety o Love and Belonging o Esteem o Self Actualization Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases. Motives often operate at a subconscious level therefore are difficult to measure.  Perception What do you see? Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. IE we chose what info we pay attention to, organize it and interpret it. Information inputs are the sensations received through sight, taste, hearing, smell and touch. Selective Exposure Select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies current needs, intensity of input changes (sharp price drop). Selective Distortion Changing/twisting current received information, inconsistent with beliefs. Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. A current example...MCI and AT&T...do you ever get confused? Selective Retention
  • 16. 16 Remember inputs that support beliefs, forgets those that don't. Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned. Exposed to 1,500 advertisements per day. Can't be expected to be aware of all these inputs, and certainly will not retain many.  Ability and Knowledge Need to understand individual’s capacity to learn. Learning, changes in a person's behavior caused by information and experience. Therefore to change consumers' behavior about your product, need to give them new information re: product...free sample etc. When making buying decisions, buyers must process information. Knowledge is the familiarity with the product and expertise. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product. Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they assume that the greater price indicates greater quality. Learning is the process through which a relatively permanent change in behavior results from the consequences of past behavior.  Attitudes Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible, living or non- living.....Drive perceptions Individual learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy. Attitudes and attitude change are influenced by consumers personality and lifestyle. Consumers screen information that conflicts with their attitudes. Distort information to make it consistent and selectively retain information that reinforces our attitudes. IE brand loyalty.
  • 17. 17 There is a difference between attitude and intention to buy (ability to buy).  Personality All the internal traits and behaviors that make a person unique, uniqueness arrives from a person's heredity and personal experience. Examples include: o Compulsiveness o Dogmatism o Self confidence o Friendliness o Adaptability o Ambitiousness o Authoritarianism o Introversion o Extroversion o Aggressiveness o Competitiveness. Traits effect the way people behave. Marketers try to match the store image to the perceived image of their customers. There is a weak association between personality and Purchase Behavior, this may be due to unreliable measures. Nike ads. Consumers buy products that are consistent with their self concept.  Lifestyles Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy, natural lifestyle.
  • 18. 18 Lifestyles are the consistent patterns people follow in their lives. Example healthy foods for a healthy lifestyle. Sun tan not considered fashionable in US until 1920's. Now an assault by the American Academy of Dermatology. Social Factors Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and culture.  Opinion leaders Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay) spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.) Can be risky...Michael Jackson...OJ Simpson...Chevy Chase  Roles and Family Influences Role...things you should do based on the expectations of you from your position within a group.People have many roles. Husband, father, employer/ee. Individuals role are continuing to change therefore marketers must continue to update information. Family is the most basic group a person belongs to. Marketers must understand: o That many family decisions are made by the family unit o Consumer behavior starts in the family unit o Family roles and preferences are the model for children's future family (can reject/alter/etc)
  • 19. 19 o Family buying decisions are a mixture of family interactions and individual decision making o Family acts an interpreter of social and cultural values for the individual. The Family life cycle: families go through stages, each stage creates different consumer demands: o Bachelor stage...most of BUAD301 o Newly married, young, no children...me o Full nest I, youngest child under 6 o Full nest II, youngest child 6 or over o Full nest III, older married couples with dependant children o Empty nest I, older married couples with no children living with them, head in labor force o Empty nest II, older married couples, no children living at home, head retired o Solitary survivor, in labor force o Solitary survivor, retired o Modernized life cycle includes divorced and no children. Reference Groups Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviors of the group members. Families, friends, sororities, civic and professional organizations. Any group that has a positive or negative influence on a persons attitude and behavior.  Social Class
  • 20. 20 An open group of individuals who have similar social rank. Criteria: Occupation, Education, Income, Wealth, Race, Ethnic groups and possessions. Social class influences many aspects of our lives. I.e., upper middle class prefer luxury cars Mercedes. o Upper -upper class, .3%, inherited wealth, aristocratic names. o Lower-upper class, 1.2%, newer social elite, from current professionals and corporate elite o Upper-middle class, 12.5%, college graduates, managers and professionals o Middle Americans-middle class, 32%, average pay white collar workers and blue collar friends o Working class, 38%, average pay blue collar workers o Lower Americans-lower class, 9%, working, not on welfare o Lower-lower class, 7%, on welfare Social class determines to some extent, the types, quality, and quantity of products that a person buys or uses. Lower class people tend to stay close to home when shopping, do not engage in much prepurchase information gathering. Stores project definite class images. Family, reference groups and social classes are all social influences on consumer behavior. All operate within a larger culture.  Culture and Sub-culture Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in the US are good health,
  • 21. 21 education, individualism and freedom. In American culture time scarcity is a growing problem. IE change in meals. Big impact on international marketing.
  • 22. 22 NEED AND IMPORTANCE OF THE STUDY India is wide and large country, which is highly concentrated in rural society and spread over 5, 65,742 villages, which is nearly about 70% of the overall population. Agriculture is the main income source. Dairying is complementary to Agriculture income and playing important role in the stability of rural economy. The cow was adored as the deity Kamadenu with its milk as nectar for human life. Milk and its product depute an important and compulsory part of daily life. From early ages of human life milk is considered as the most significant and complete food among all the food products. Milk gives energy, body building proteins, bone forming minerals, vitamins, Lactose, fast and fatty acids, etc. Besides providing certain essential fatty acids, it contains nutritional components for easy assimilation of food and digestion. All these properties make milk an important food product in the universe. As Indian Economy is predominantly agricultural dependent, Dairy and Animal Husbandry from an important activity of its Economy. This dairying activity constitutes 10% of total G.D.P. Agriculture being a seasonal activity it cannot give regular income throughout the year certain activities like dairying, sheep rearing, poultry, etc. are taken up. Major part of the milk is produced in rural areas, but the demand for milk is mainly from the urban area. Urban consumers receive milk through private milk vendors who collect milk from rural areas i.e. village.
  • 23. 23 Dairy in India was not in an organized manner till 1895. There were military dairies until 1940 with modern processing facilities like that of pilot dairy at Anand. After independence in 1947 greater “Bombay Milk Scheme” was started and Airey milk colony was established. Milk was supplied from Kaira District Co-operative Milk Producer Union known as “Anand Milk Union Limited (AMUL)” to greater Bombay Milk Scheme. In 1951, Government started ‘Key Village Scheme’ to improve the productivity intensive cattle development productivity of milk cattle under Five Year plan Scheme. Productivity intensive cattle development Project was started through scientific breeding, feeding and right management practices. In 1960, under the pattern of greater “Bombay Milk Scheme” some state Governments in India started milk supply schemes procuring milk from rural areas paying remunerative price to the milk producers. Then dairying acquired national level recognition. India has the largest cattle and buffalo population but its share of the milk production is 10% only. In India, the average animal milk capacity per cow is only 150 liters per year and buffalo 50 liters per year. In some countries due to dairy development activities, the average milk production per cow is 300 liters to 400 liters per year. In India at present the level of milk consumption is only 19 ml per head while a healthy person requires at least 21ml daily.
  • 24. 24 In India, many problems arise in marketing of the milk. The main problems are lack of adequate and timely supply of milk, poor quality and adulteration of milk leakage of packets, high and low discrimination of prices. Government of India adopts several measures to improve the marketing system, quality and sales of milk in rural as well as in urban areas. Consequently, today most of the urban areas covered by Dairy Co-operative Societies of their respective states. Recognizing the nature of business, the dairy industry concerted into a commercial institution of AP Dairy Development Corporation Limited in 1974. With a mission of industrializing rural dairying, tapping and promoting the dairy industry with greater development opportunities to the people of Andhra Pradesh. Because of the changing scenario in the competitive environment in the last five years, the role of Government and voluntary organization has been limited with a major focus on private industry. Governing companies like Heritage, Cream line dairy, Ravila etc. The role of NDDC and Vijaya Dairy has been subsided. Keeping this in view and devised an effective marketing strategy for Vijaya Dairy with a competitive orientation. “Warngal and Hanamkonda Milk Producer Co-operative Union Limited” is one of the unit of Andhra Pradesh Dairy Development Co-operative Federation Limited is selected.
  • 25. 25 OBJECTIVES OF THE STUDY This project is based on the study on consumer buying behavior towards “Vijaya Dairy Milk”.  The Main objective of the study is to know the consumer purchase behavior towards Vijaya Dairy milk  The study is to find out the various attributes in a product which results in purchase  To identify level of consumer satisfaction and the consumer needs  To study the factors affecting the consumer buying behavior  To offer pertinent suggestions to the company in understanding consumer behavior
  • 26. 26 SCOPE OF THE STUDY As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as their roles as consumers. They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer’s needs, but the marketer’s objectives. The Scope of My study restricts itself to the analysis of consumer buying behavior, with special reference from “VIJAYA DAIRY MILK”, Warangal. The scope of my study is also restricts itself to Warangal region only. And the study depends on psychological aspects and the opinions may differ from one consumer to another.
  • 27. 27 RESEARCH METHODOLOGY This chapter describes the methodology of the study. This project is based on information collected from primary sources. After the detailed study, an attempt has been made to present comprehensive analysis of consumption of Vijaya Dairy Milk consumed by the people. The data had been used to cover various aspects like consumption, consumer buying behaviour and customer’s satisfaction regarding Vijaya Dairy Milk. In collecting requisite data and information regarding the topic selected, I went to the residents of Warangal and collected the data. Survey design: The study is a cross sectional study because the data were collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience. Sample Size and Design: A sample of 100 people was taken on the basis of convenience. The actual consumers were contacted on the basis of random sampling. Research Period:
  • 28. 28 Research work is only carried for 5 or 6 weeks. Research Instrument: This work is carried out through self-administered questionnaires. The questions included were open ended, dichotomous and offered multiple choices. Data Collection: The data, which is collected for the purpose of study, is divided into 2 bases:  Primary Source: The primary data comprises information survey of “Consumer Buying Behavior towards Vijaya Dairy Milk”. The data has been collected directly from respondent with the help of structured questionnaires.  Secondary source: The secondary data was collected from internet, References from Library.
  • 29. 29 Limitations of the Study:  The survey is restricted to Warangal tri cities only.  Since the Sample size is 100 and the data may not represent the accurate results.  The views expressed by the consumers may not be 100% accurate.  The time period of the project is only six weeks, which may not be sufficient for the study
  • 30. 30 DAIRY INDUSTRY In the history of world dairying, the year 1998 has been a lucky year for India. We have just emerged as the highest milk producing country in the world and that too in the 50th year of our independents. Increasing the annual milk production from 20 million tones in 1970 to around 14 million tones in 1998 is no mean achievement. Infact, it is unique success story of India’s dairy development contributed by the small holders. Our country has the largest bovine population in the world (195 million cattle and 77 million buffaloes). The results of White Revolution are quite visible with our per capital milk consumption rising to 210 g per day inspite of the ever increasing human population. All the has largely been a developmental agency of governmental, non- governmental and cooperative institutions. Indian deriving has over the years created an identify of its own. It has also succeeded in having a competitive edge due, to its low-investment, energy-efficient, cost Effective production system. A recent survey conducted by the Food and Agriculture Organization (FAO) of the United Nations has declared India as the top milk producer in the world, surpassing USA. The credit for enabling India to reach this milestone goes to millions of small and marginal farmers and land less labourers for their untiring efforts and the institutional support provided by the National Dairy development board under the Operation flood Programmed. Here, a noteworthy aspect is that India has achieved this coveted position without giving any incentive or subsidy to it dairy farmers unlike most of the developed dairying nations.
  • 31. 31 The dairy sector provides round-the-year employment which no other agri business can do. Besides, it also provides a safety net to the weaker sections of our society. But unfortunately this sector’s contribution to the Indian economy and its growth potential have not yet been properly recognized. The industrial sector has been regularly receiving several forms of subsidies and incentives since independence. The agriculture sector too has its own share of privileges and subsidies. But, if one goes through the budgetary allocations of all the plans made so far, dairying’s share is too insignificant as compared to any other sectors. And, never any special incentive was given to it. The dairy sector is also deprived of the special banking support as is provided to the industrial as well as agriculture sectors. EMERGING WORLD SCENARIO (Dairy Industry)
  • 32. 32 Dairy Industry in the Emerging world Scenario: Dairying has played a prominent role towards household nutrition security and also in strengthening our rural economy. It has been organized as an instrument to bring about socio-economic transformation. Also the dairying sector has helped national economy by emerging as the largest milk producer in the world. The import dependent Indian dairying soon become not only self sufficient but also poised for an export oriented dairying nation. This has been primarily attributable to the implementation of the Operation Flood Programme launched in 1970 under the aegis of the National Dairy Development Board. The architect of the quite Revolution Dr. Kurien deserves special compliments. However, the gains of the White Revolution achieved through the cooperative networking of the small and marginal farmers, and land less labourers are needed to be sustained to cope with the rapid transformation that are now taking place consequent to the GATT Agreement and establishment of the World Trade organization (WTO). In future, international trade will be strongly regulated by the WTO regime. New ever and stricgter Sanitary and Phytosanitary Standards are being framed for regulating quality standards. Under these circumstances, our practices for production and processing milk cannot stay at variance with the international standards. EMERGING WORLD SCENARIO:
  • 33. 33 The Uruguay Round of Multi-lateral Trade Negotiations signed on 15th April. 1994 us well as General Agreement on Tariffs and Trade (GATT) the world economies are swiftly gearing to adjust with the situation arising due to the withdrawal of trade subsidies. The major dairying countries of the world, which had heavily relied on these subsidies, are now readjusting their internal economies in order to produce milk at the competitive price. One sound economic principle guiding the trade globally is, "if a commodity cannot be produced at competitive prices, it is wiser to import". Since such changes were anticipated, most of the European Nations had the acumen of streamlining their economies long back. The Eastern Europe has consciously reduced production of milk from 39 MT in 1991 to 35 MT in 1998. In the same period, West Europe has reduced milk. Production from 129 MT to 126 MT. Several other adverse factors, such as the perceived image of production has led to a decrease in butter production on a global basis. The world production of butter has declined from 5.03 MT in 1991 to 5.01 in 1997. Withdrawal of subsidies coupled with reduced demand of skim milk powder has led to the decline of its production from 1500 MT to 1100 MT. It is paradoxical that as a global impact of GATT, EU has resorted to conscious reduction of domestic milk production, even though the demand for cheese and whole milk is rising. Consequently, to fill up this gap, world trade of cheese has gone up from 950MT to 1300 MT during 1993-96. There has also been an increased from 1050 MT to 1300 MT in the global of whole milk Powder. EMERGING TRENDS IN MILK PROCESSING:
  • 34. 34 With the changing declining trends in the domestic/export markets as well as profits for conventional dairy products, such as milk powder, butter etc., need for product diversification that permits value addition, long life-cycle and greater income has become quite obvious. Growing awareness towards the beneficial role of milk and milk products in maintaining normalcy of human health has led to the development of a new range of functional floods, also called 'health foods' or 'nutraceutical' or even 'mood elevating/refreshing foods'. It is widely recognized that components derived from milk such as immunoglobulin, lactoperoxidase, lactoferrin, lysozyime, vitamin binding proteins etc, play an 'extra nutritional' which are formed during the passage through digestive tract. Fermented milk products such as yogurt in particular provide beneficial microbes, which favorably influence the microbial ecology of the gut-system. These, in turn, effect various biochemical functions to protect human health. Biotechnology has been successfully employed to develop genetically modified strains of dairy cultures that tend to reduce risks of enteric infections, hypercholestemia,, rate of proliferation of an cancer cells as well as augment immune system besides offering may other health promoting attributes. The dairy industry in advanced countries is rapidly diversifying its product mix to produce arrange of dairy foods that is targeted to reduce the role of medicine in maintaining normalcy of dairy foods that is targeted to reduce the role of medicine in maintaining normalcy of human health. Japan the world leader in this sector. where the current market of US$ 5.5 billion is still last growing. In the USA 11 billion. Hence, biotechnology, Bioengineering and food science offers new opportunities to Industry, which we must capitalize through, required R&D efforts, both in the public and private sectors.
  • 35. 35 Dairy industry is also fast diversifying to develop special food ingredients derived from milk. Which can be deployed advantageously to improve the sensory quality attributes. These include fractionated casemates whey protein concentrates, enzymatic hydrolyses prepared by employing innovative energy efficient unit processes. Packaging is another area, which is receiving intensive R&D inputs for developing low cost, biodegradable materials to prevent further damage to the environment and ensure greater food safety. However, greater challenge lie before the Indian dairy industry in modernizing the unorganized sector engaged in the preparation of wide range of indigenous milk products. Intensive scientific, R&D and financial input are necessary to develop industrial manufacturing and packaging system. Apart from the development of continuous/mechanized systems for industrial production of ghee, khoa, gulabjamun, shrikhand and burfi, very little progress had been made in this area. The weakest link is in developing appropriate packaging systems that may conform to the international standards of product safety, shelf life and labeling requirements. It is in this context, India is yet to take advantage of UHT technology, which could otherwise help in minimizing post-harvest losses and also accord greater physical access in remote and difficult areas.
  • 36. 36 INDIA’S CHANGING SCENARIO (Dairy industry) India's competitiveness: Livestock sector is the backbone of India's economy in terms of income employment equality sustainability and foreign exchange earnings. By virtue of traditional practice of utilizing the crop resides as feed for the milk animals, India has been able to achieve milk production of 70 million MT at a very competitive 'Farm Gate Milk Price’ on global basis. India enjoys competitive edge over Newzealand, Australia and the USA of being able to produce milk at a lower cost. Livestock products have registered a compound growth rate of 5.26% per annum, during the preceding decade. Milk and milk products account for 66% of the total value of livestock products. Another noteworthy feature of Indian dairy scenario is that all the milk is produced by a very large number of milk animals having low productivity. Thus, only marginal improvement ion animal productivity is capable of making a substantial impact. On the other hand. in the technologically advanced countries, even small targets for increased milk production present major challenge, since animals have already attained their maximum genetic potential and the production systems have also been optimized. India has well-organized dairy infrastructure of 7,800 rural milk cooperatives and a processing capability of abut 12million litre per day in about 280 dairy plants. India has a strong HRD capability to meet the multi sectoral requirement of the dairy industry. India has generated very valuable experience and competence in treopical dairying, which can serve as model for developing countries. In particular, India has developed a very precious R & D reservoir for buffalo; milk processing. This provides opportunities
  • 37. 37 for export of technologies to partner countries through an integrated approach for accessing remunerative markets. With the liberalization of world economies, Indian dairy industry has also ventured to explore the export markets. A rather modest, beginning has been made through exports of milk powders, being Rs. 318.5 to 22 countries, mainly Bangladesh, Srilanka, Nepal, UAE, the Philippines and the Netherlands PROSPECTS OF CHEESE PRODUCTION IN INDIA Cheese has the potential of emerging as the No. 1 dairy product in India, with its present estimated demand of 1800 tones projected to rise to 30000 tonnes by 2000 AD. The global cheese market is also beckoning the Indian producers. For, after the WTO enforced withdrawal of the milk producer subsidy, European producers would Fine it difficult to market cheese at competitive prices. Prospects of cheese production in India is quite bright. This is because of the fact that cheese has all the attributes of an ideal dairy product. Cheese is a fermented dairy product. Fermentation has occupied a place of pride in the food preservation practices from time immential. It improves nutritional value and enriches the flavor, body and texture of the product. Fermented milk products have been reported to have therapeutic. Anticarcinogentic and anticariogenic properties. Cheese represents a balanced food with concentrated from of energy and good quality? protein. As such, it is only food, which could prove to be an appropriate substitute to non-vegetrial diet. Cheese has high food and nutritive value. It is an excellent source of high quality protein, rich source of calcium and phosphorous, an
  • 38. 38 excellent source of several fat-soluble vitamins. To consumers, it provides good nutrition, variety. Convenience for use. Portability, food safety and novelty of flavor and texture. Process cheese spread and slices have proved to be an ideal bread-mate. The consumption of bread is increasing very fast in India. Butter, the traditional spread for bread, is not avoided because of its high fast content. The other conventional spread like jam and jelly are considered as junk food. Thus it is the cheese, which can provide nutritionally sound spread for bread. STEPS INVOLVED: Milk is procured from the farmers by the dairy units and goes through various tests and processed to obtain good satisfactory results from the consumers. It involves the following steps.  Testing  Chilling  Pasteurization and chilling  Packaging TESTING:
  • 39. 39 Milk procured undergoes through various tests such as:-  Ph Test: The Ph value gives the measure of the time acidity of milk. Generally ph ranges from 6.6-6.8. milk over ph 6.9 is considered as suspicious of disease or lactation of milk.  Acidity Test: It is used lo find out the quality and heat stability of milk and also to check the content of lactic acid present in it.  Sedimental Test: It presents a rapid and quantitative means indicating the cleanliness of milk as regards to visible dirt.  Alcohol Test: It is made to detect whether milk has tendency to curdle during the sterilization process.  On Boiling Test (COB): COB test is meant to have final confirmation of the quality of milk. Since, with high acidity and salt content clots on boiling due to precipitation of protein it is rejected.  Fat test: It is conducted to estimate the fat percentage present in the milk that is procured form the farmers. CHILLING: Milk procured from various areas throughout the settle from framers is brought to their respective dairy units by solo milk tanker, where the milk is chilled. Milk is chilled to very low temperatures so that it last longer and does not perish. This is very important for milk storage, as it can be stored at very low temperatures only. PASTEURIZATION AND CHILLING:
  • 40. 40 Pasteurization is a process where milk is churned at. high speed and sterilized by heating at high temperatures. Here the milk is made free from derived amount of fats, edible oils and also disease causing germs after pasteurization process. Chilling process takes place for longer storage of milk. PACKAGING: It is a technique of using most appropriate container to protect, carry, identify and merchandise any product. Manufacturer desires his product to reach in safe delivery to the consumers through the various stages of ; manufacture, storage, transport, distribution and marketing. The packaging of any product is judged as follow:  It must protect and preserve the commodity until it reaches the consumers.  It must be suitable for selling and distribution system.  It must attractive to the consumer.  Easy to open, store and dispose.  Reasonable in cost.
  • 41. 41 ATTRIBUTES Many products are obtained from milk. They are:  CREAM: It is obtained from cow or buffalo milk or of a combination there of which separated from it by means of centrifugal force, where milk is rotated at the high speed with which, the cream moves away from the axis. This cream is generated during the rotation and is taken from the sides of the separator. Generally the fat content in the cream is of the 25% taken from the sides of the separator. Generally the fat content in the cream is of the 25%.  BUTTER: Butter is a fat rich product containing about 80% of milk fats while the rest is a water, salt curd and also colour is added to some types of the butter and cooking butter.  GHEE : It is the most important ingredient- in day life of nay Indian. Ghee is the pure clarified fat derived solely from milk or curd or from desibuytter or from cream to which no coloring or preservative is added. It is obtained by pre-stratification method i.e.. Rise in temperature of milk to I 10-120c. the shelf life is 6 months only.  CHEESE: It is obtained by draining after coagulation of milk with a harmless milk cultures. It has a minimum of 42% of milk fat. The most common cheese used is the cheddar cheese. It is hard, ripened cheese made from pasteurized milk to which small amount of lactic is added. The shelf life of cheese is 4-6 months only.
  • 42. 42  FROZEN PRODUCTS: The most common frozen products that water one's mouth arc ice creams, kulfi and choc-bar. These are obtained from cow or buffalo milk or combination there of or from cream. They have 10% milk fat and are prepared with mixtures of dry fruits of nuts or both to have an excellent taste. These frozen products are cooled below 4c only. The shelf life of froze products l-2rnonths only. INDIGENOUS DAIRY PRODUCTS;  PANEER: It is obtained from cow or buffalo milk or combination thereof by precipitation with sour milk and lactic acid. The milk fat content is a minimum of 50% of the product.  KHOA: It is obtained from cow or buffalo milk or a combination there of by rapid drying. The milk fat content in a khoa is 20% product.  DAHI : Dahi or commonly called curd is obtained from boiled milk by souring, natural or otherwise, by a harmless lactic acid or bacterial culture.  DRIED MILK : It is milk powder, which is prepared by spray drying of fresh skimmed milk of cow or buffalo or a mixture thereof. It when mixed with water becomes milk. Its shelf life is up to a period of 9 months.
  • 43. 43 SALES: India is currently the second largest milk producer in the world after the USA milk production has increased from 23 m MT in the years 1972-73 to 58.6 m MT in 1992-93 i.e a rise of 150% over a period of 20 years, this phenomenal rise of the dairy sector in Indian can largely be attributed to the successful implementation of the "operation flood" program space under NDDB. In AP major quantity of milk is procured from CHITTOR and VIJAYAWADA districts. During the 'FLESH' season (SEP-MAR) and 'LEAN' season (Apr-Aug) of every year, maximum and minimum amount of milk is respectively procured, Finally country's milk export is low due to exploitation of farmers and improper utilization of sources. VIJAYA DIARY
  • 44. 44 PROFILE OF WARANGAL DAIRY: This chapter gives detailed information about the development availability under taken by Warangal Dairy and the existing management system of Warangal Dairy etc. It is also contains of a fries profile of Warangal Dairy. In Warangal districts around 60% of the population depends on agriculture of their livelihood. It also has a tourist with a range of 3.7 lakhs hectors. In Warangal district different types of cattle breed are found. There are certain types of buffaloes in the District, according to the Animal husbandry department. The buffalo living in Warangal are apart from production of milk, cattle’s are used for agricultural purpose. There is a Dairy plant in Warangal town and foremilk chilling centre, each at Thorrur, Mulugu, Narsampet and Jangaon. Their milk chilling centres collect milk from collection centres in the villages. The collected milk is chilled at the concerned chilling centre and it is transported to the Warangal Dairy. The processed milk at Warangal Dairy is marketed to the milk consumers in the tri-city of Warangal, Hanamkonda and Kazipet in the form of distribution. Warangal is considered as Municipal Corporation which covers the entire area of Warangal city and some sub urban areas like Hasanparthy etc., it covers there towns mainly Warangal, Hanamkonda and Kazipet. Warangal is considered the centre of trade while Hanamkonda was famous for Government offices and educational Institutions. The importance of Kazipet because of it’s being Railway Junction.
  • 45. 45 DAIRY DEVELOPMENTACTIVITIES IN WARANGAL DISTRICT: In Warangal District Organizational attempts to procure and distribute milk in the year 1968. Milk supply of farmers of Warangal District was formed in Organized Co-operative sector under the intensive milk supply scheme; these activities were looked alter by the State Government Department of agriculture and Animal Husbandry. Under this scheme a medium size of Dairy was sanctioned with a capacity of 12,000 litres per day, when the State Government has established the Dairy development in 1970. Warangal Dairy has bought under its shadow. Again when the state government established Andhra Pradesh Dairy Development co- operation limited (APDDC LTD) Warangal Dairy came under their control. The Government of Andhra Pradesh has decided to implement operation Flood-II Programme in the state. A.P.Organization structure of APDDCF Ltd., from 1981 onwards. At present Warangal is under the supervision and control of APDDCF Ltd. To meet the requirement of procedure as well as consumers in Warangal town, a bulk cooler is installed at that period with the installation of cooler, milk supply to the Warangal was started on 10th March 1969. The construction of building and installation of plant and machinery was completed in 1971. Dairy opening ceremony was help on September 1971. It was speed over as area of 5 acres and 24 guntas. The cost of construction was more than Rs. 20 lakhs. An initial stage milk automatic bulk machine with a capacity of 5,880 bottle per hour was installed. In the year 1982 the pre packed machined was instandand milk is now being supplied in polythene sachets. At present there are two pre packed machines functioning each with a
  • 46. 46 capacity of 5000 milk sachets per hour. The milk in Warangal is distributed through more than 100-booth need over the tri-city of Warangal. In addition to this milk is also being supplied on credit to instructors like hospitals, hotel, Railways, canteen and Central Jail etc., Relating to this Warangal Dairy has there Dairy parlors for selling milk products like whole milk powder, ghee, butter, cheese etc. OBJECTIVE OF THE WARANGAL DAIRY ORGANIZATION:
  • 47. 47 Warangal Dairy Organization is using “VIJAYA” Brand labels to sell their products to the consumers wherein some other states, the Dairy federation is using “AGMARK” Brand to market their products. Warangal Dairy is a District level unit and all the policy decisions are taken at the head office level. Warangal unit is only a functioning unit, which operates the work to achieve the objection of Dairy federation. OBJECTIVES OF WARANGAL DAIRY:  To provide the good market for all rural as well as urban markets.  To create awareness among Vijaya brand products like milk.  Supply of pasteurized milk to the people of Warangal, Hanamkonda and Kazipet at reasonable price.  To increase the sales by improving the quantity of Vijaya brand milk.  To avoid the distance and convenience of customer.  To educate people to buy milk (Vijaya) through advertisement and marketing.  Fulfillment of social obligation. DISTRIBUTION METHODS IN WARANGAL DAIRY:
  • 48. 48 Distribution of milk is done through three methods. They are - Cash Sales method - Advance Sales method - Credit Sales method The milk sales are being conducted in the tri-cities of Warangal, Hanamkonda and Kazipet through 98 booths is a Credit Institutions. The sales have reached now up to 15,000 litres per day. For prompting sales of company product the study of consumer behaviour is inevitable or compulsory. Marketing manager should take decisions regarding. Brand, discount, packaging, commission, advertising policy, gifts, free samples etc., by studying consumer behavior. MILK AND MILK PRODUCTS: Today APDDCF offers the widest spectrum of milk products in India, under the brand name “VIJAYA”. These include Ghee, Bhutter, Processed Cheddar, Chese and Cheese spread, UHT Milk, flavoured milk, slim milk in Tetra packets, sterilized Cream, Skim milk powder, Dairy Whitener, cooking butter and ice cream. Several among these carry the Agmark, an attestation of quality by Government of India and the ISI mark of Bureau of India standards. The brand “VIJAYA” denotes quality & quality, which makes it a trusted name in millions of house hold across the country. In addition, APDDCF also manufactures products such as sterilized favour milk, apnner, Doodh peda and Dairy parlours and a chain of retailers spread across Andhra Pradesh. ORGANIZATIONAL STRUCTURE:
  • 49. 49 With a strong desire to develop the dairy industry in the state, involving the milk procedures in organizing the procurement production, processing and marketing of the milk produced in rural areas. For this purpose, the Government of Andhra Pradesh has taken a decision to convert the Andhra Pradesh Dairy Development Corporation Limited into Andhra Pradesh Dairy Co-operative Federation Limited (APDDCF LTD) on 5th September, 1981. For the administrative convenience of APDDCF its organization structure formed into milk sheds in 25 Districts of Andhra Pradesh. Each milk shed is under the charge of a Joint Director or a Deputy Director. District Level Three-tier Dairy Co-operative Structure APDDCF Milk Unions Milk Producers co-op societies State Level Village Level Apex Body Unions Societies
  • 50. 50 In Andhra Pradesh the Co-operative sector is having 3 tiers. It is having societies. Union and federations. They are,  At village level, milk producers Co-operative societies.  At District level, milk producers Co-operative Unions.  At State level Co-operative milk producers federation. Out of 23 Districts of Andhra Pradesh, Operating, Flood-II Programmed is being conducted in 16 districts. The 7 Districts, which are not covered under this program, are Adilabad, Karimnagar, Warangal, Khammam, Mahaboobnagar, Nellore and Ananthapur. This program cannot be adopted in these Districts because their daily procurement is less than 20,000 liters per day. Today, Dairy Industry in Andhra Pradesh has emerged as a powerful instrument of socio-economic change. There are 63 Dairy units in different parts of the state including 48 milk chilling centres, 9 District Dairies and 6 milk product factories About 6,400 villages co-operative Societies are procuring milk from 11,900 villages among 286 routes. It is estimated that 5 lakhs milk producing families and 24 lakhs consumers are benefited by the activities of the APDDCF. The dairy Industries concentrating on increasing the procurement was 636 lakh liters. It is increased to 2.52 lakh liters in the year 1985-1986 and it has increase enormously in 1992, 1993 to the effort of 8,000 lakh liters per day. In the present year 2006-07, the dairy industries concerning on the increasing procurement was above 50, 000, 00 lakh liters per day.
  • 51. 51 Table 3.1 BRAND OF MILK PREFERRED TO PURCHASE S.No Brands No. of Respondents % of Respondents 1 Vijaya 35 35% 2 Jersey 15 15% 3 Mulkanoor 40 40% 4 Others 10 10% Total 100 100% Vijaya 35% Jersey 15% Mulkanoor 40% Others 10% The above graph depicts that majority of respondents (40%) are prefer the Mulkanoor, 35 of respondents are preferring Vijya Milk.
  • 52. 52 Table 3.2 MODE OF PURCHASE S.No Attributes No. of Respondents % of Respondents 1 Milk Vendors 35 35% 2 Milk Dealers 20 20% 3 Retail Stores 45 45% 4 Others 0 0% Total 100 100% Milk Vendors 35% Milk Dealers 20% Retail Stores 45% Others 0% From the above graph, it is observed that 45% of respondents are buying the Milk from Retail stores, 35% are buying the Milk from Milk Vendors.
  • 53. 53 Table 3.3 FORM OF MILK FOR CONSUMPTION S.No Attributes No. of Respondents % of Respondents 1 Loose Milk 35 35% 2 Packet Milk 48 48% 3 Both 17 17% Total 100 100% Loose Milk, 35 Packet Milk, 48 Both, 17 The above graph shows that 48% of respondents are buying the milk in Packet form, 35% of respondents are in Loose Milk.
  • 54. 54 Table 3.4 MODE OF COMMUNICATION S.No CHANNELS No. of Respondents % of Respondents 1 Advertisement 0 0% 2 Retail Stores 75 75% 3 Neighbors / Friends 25 25% Total 100 100% Advertisemen t 0% Retail Stores 75% Neighbors / Friends 25% From the above graph, it is known that 75% respondents are came to know about Milk from Retail Stores, 25% of respondents are came to know by Neighbor/Friends and Advertisement.
  • 55. 55 Table 3.5 QUANTITY OF MILK CONSUMED (DAILY) S.No Attributes No. of Respondents % of Respondents 1 ½ Lit 45 45% 2 1 Lit 35 35% 3 1 ½ Lit 8 8% 4 2 Lit 12 12% Total 100 100% ½ Lit, 45 1 Lit, 35 1 ½ Lit, 8 2 Lit, 12 The graph indicates that 45% of respondents are consuming ½ Ltr Milk, 35% of respondents are consuming 1 Ltr Milk.
  • 56. 56 Table 3.6 ATTRIBUTES COMPELLING TO PREFER MILK BRAND S.No Attributes No. of Respondents % of Respondents 1 Margin 35 35% 2 Quantity 30 30% 3 Demand 10 10% 4 Brand Image 25 25% Total 100 100% Margin, 35 Quantity, 30 Demand, 10 Brand Image, 25 The graph depicts that 35% of respondents are compelled to buy the Milk by Margin as main attribute, 30% of respondents are Quantity as main Attribute.
  • 57. 57 Table 3.7 PREFERANCE TO BUY THE VIJAYA BRAND FOR EVER S.No Options No. of Respondents % of Respondents 1 Yes 65 65% 2 No 35 35% Total 100 100% Yes 65% No 35% The graph depicts that 65% of respondents are willing to continue the Vijaya Milk forever, 35% of respondents are not willing to continue the Vijaya Milk.
  • 58. 58 Table 3.8 OPINION ON QUALITY OF VIJAYA BRAND MILK S.No Opinion No. of Respondents % of Respondents 1 Excellent 15 15% 2 Good 35 35% 3 Average 45 45% 4 Poor 5 5% Total 100 100% Excellent 15% Good 35% Average 45% Poor 5% The above graph shows that 45% of respondents are saying Quality of Vijaya Milk is Average, 35% are saying well.
  • 59. 59 Table 3.9 PURPOSE OF CONSUMING THE MILK S.No Attributes No. of Respondents % of Respondents 1 Tea/Coffee 45 45% 2 Feeding Children 30 30% 3 Curd 15 15% 4 All 10 10% Total 100 100% Tea/Coffe e 45% Feeding Children 30% Curd 15% All 10% The graph depicts that 45% of respondents using the milk for the purpose of Tea/Coffee, 30% are for the purpose of Feeding Children.
  • 60. 60 Table 3.10 ROLE OF ADVERTISING IN PROMOTING MILK BRANDS S.No Options No. of Respondents % of Respondents 1 Yes 65 65% 2 No 35 25% Total 100 100% Yes 65% No 35% Graph shows that 65% of respondents are saying that advertisement plays a role to promote the milk brands, 35% are saying no.
  • 61. 61 Table 3.11 PROBLEMS ENCOUNTERED IN USAGE MILK BRAND S.No Options No. of Respondents % of Respondents 1 Yes 20 20% 2 No 80 80% Total 100 100% Yes 20% No 80% The graph shows that 20% respondents are facing the problem while consuming of Milk, 80% of respondents are not facing any problem.
  • 62. 62 Table 3.12(1) ADOPTION OF OTHER BRAND Opinion No. of Respondents % of Respondents YES 95 95% NO 05 05% Total 100 100% IF YES Table 3.12(2) Opinion No. of Respondents % of Respondents Jersey 30 30% Mulkanoor 50 50% Others 20 20% Total 100 100% YES 95% NO 5% Jersey, 30 Mulkanoor, 50 Others, 20 The above graphs depicts that 95% respondents are changing their brand and they will prefer 50% Mulkanoor and 30% of respondents will prefer Jersey.
  • 63. 63 Table 3.13 OPINION ON PRICE OF VIJAYA MILK S.No Reasonable respondents percentage 1 yes 75 75% 2 No 25 25% total 100 100% yes 75% No 25% Most of the people i.e, 75% of people accepted that Vijaya milk price is reasonable.25% of the people don’t accept the price of Vijaya milk.
  • 64. 64 Table 3.14 NEED FOR CHANGES IN VIJAYA BRAND Milk Quantity 0% Quality 10% price 15% Service 75% Most of the people i.e, 75% people want changes in Vijaya milk product,15% of the people want change in price of Vijaya milk. S.No Change Options No. of Respondents % of Respondents 1 Quantity 0 0% 2 Quality 10 10% 3 price 15 15% 4 Service 75 75% Total 100 100%
  • 65. 65 CONCLUSIONS:  Majority of the respondents are using packet milk.  Most of the respondents are prefer to purchase Mulkanoor.  Majority of the respondents are consuming milk for tea/coffee and feeding children.  Maximum no of respondents consume ½ liter milk.  Most of the respondents are preferring packet milk.  Maximum of the respondents are aware of vijaya milk through kirana, general stores and neighbors.  Most of the respondents accepted that vijaya milk price is reasonable.  Most of the respondents feel that vijaya milk is having quality.  Majority of the respondents change their brand when vijaya milk not available in the market.  Majority of the respondents want changes in vijaya milk product .
  • 66. 66 SUGGESTIONS: 1. Vijaya Dairy should concentrate more on quality to improve the sales of product. 2. The Organization should improve the sales of product, more advertising can be used. 3. Look out for strategies, which will help in being different from the competitors like having catchy “ PUNCH LINES” which could attract the customers 4. The Vijaya Dairy should improve on availability and distribution of milk 5. The Organization can provide the milk booths to convince the customers in different locality. 6. As Mulkanoor is consumed by many people so the Vijaya Dairy Milk should maintain some strategies to improve the Sales in market. 7. Print date of packing on the sachets in order to discourage the supply of old stock
  • 67. 67 QUESTIONNAIRE DearRespondent, I am student of MBA (Marketing) of BALAJI INISTITUTE OF TECHNOLOGY & SCIENCES,NARSAMPET,WARANGAL(AP) .I am doing a Project on “CONSUMER BUYING BEHAVIOR” Towards VIJAYA DAIRY MILK. PERSONALINFORMATION NAME: AGE: PLACE: EDUCATION: 1) WHICH IS THE BRAND OF MILK YOU PREFER TO PURCHASE? a) Vijaya Dairy b) Jersey c) Mulukanooru d) Other 2) HOW DO YOU GENERALLY BUY THE MILK? a) Milk Vendors b) Milk dealers c) Milk booths 3) IN WHICH FORM YOU WOULD LIKE TO BUY YHE MILK?
  • 68. 68 a) Loose milk b) Packet milk c) Both 4) HOW DO YOU CAME TO KNOW ABOUT VIJAYA BRAND MILK? a) Advertisements b) General Stores c) Neighbors d) Others 5) HOW MUCH QUANTITY OF MILK DO YOU CONSUME DAILY? a) ½ Liter b) 1 Liter c) 1 1/2 Liter d) 2 Liter 6) WHICH ATTRIBUTE COMPELS YOU TO PREFER A PARTICULAR MILK BRAND? a) Margin b) Quantity c) Demand d) Brand Image 7) DO YOU PREFER TO BUY THE VIJAYA BRAND FOR EVER? a) Yes b) No 8) IF YES/NO PLESE GIVE REASON ____________________________________________________________ 9) WHAT IS YOUR REASONS IN QUALITY OF VIJAYA BRAND MILK IS____ a) Excellent b) Good c) Average d) Poor
  • 69. 69 10) FOR WHICH PURPOSE DO YOU CONSUME THE MILK? a) Tea / Coffee b) Feeding Children c) Curd d) All e) Other 11) DO YOU THINK ADVERTISING PLAYS ANY ROLE IN PROMOTING MILK BRANDS_______ a) Yes b) No 12) IF YES IN WHAT WAY ____________________________________________________________ 13) IS THE PRICE OF THE VIJAYA MILK IS REASONABLE? (A)Yes (B) No 14). DO YOU NEED ANY CHANGES IN VIJAYA PRODUCT? (A)Quantity (B) Quality (C)Price (D) Service 15) DID YOU FACE ANY PROBLEMS WHILE CONSUMING THE VIJAYA BRAND MILK? a) Yes b) No 16) IF YES, PLEASE GIVE REASON / WHAT TYPE OF PROBLEM? ___________________________________________________________________
  • 70. 70 17) IF VIJAYABRAND IS NOT AVAILABLE IN YOUR AREA, THEN WILL YOU CHANGE YPUR BRAND? (A)Yes (B) No 18) IF YES WHICH BRAND DO YOU PREFER? (A) Swakrushi (B) Thirumala (C) Vyshnavi (D) Telangana (E) Mulkanoor (F) Others 19) PLEASE OFFER ANY SUGGESTIONS TO IMPROVE THE QUALITY AND SALES OF VIJAYA BRAND MILK? _________________________________________________________________
  • 71. 71 Bibliography 1. Philip Kotler, “Marketing Management”, Pearson Publishers, 12th Edition, New Delhi. 2. Leon Schifman & Lesile Lazer Kanulk, “Consumer Behavior” Eastern Economy Edition Publishers 8th Edition, New York. 3. C.R. Kotari, “Research methodology”, Kalyani publishers, New Delhi, 1972. 4. S.J. Bedker and G.C. Berry, “Marketing Research” 1st Edition, Oxford University. References : www.apdairy.com www.nddb.com www.apddcf.govt.in