Monday, November 2, 2009
MBA PROJECT BY RAJIV MADHAVAN OLLUR ,THRISSUR KERALA
CHAPTER - 1
INTRODUCTION
India is predominantly an agrarian economy with more than 75 per cent of population living in villages, depends on agriculture, animal husbandry and allied activities for their livelihood. At present India is the world's largest milk producing country, with annual output of 84 million tonnes. The annual rate of growth in milk production in India is between 5-6 per cent, against the world's average of one per cent. The steep rise in the growth pattern has been attributed to a sustained expansion in domestic demand, although the per capita consumption is at modest, 44 per cent. India's milk production has increased more than three time in the last 30 years, rising from 21 million tonnes in 1968 to around 84 million tonnes in 2002. Dairy sector occupies an important position in the economy of India as milk is the second largest agricultural commodity contributing Rs.450 billion to the GNP of the country. In the Indian context to reduce poverty and malnutrition, milk has a special role to play for its nutritional advantages as well as providing supplementary income to around 70 million farmers in five lakh remote villages. The vast changes occurred consequent to OPERATION FLOOD PROGRAMME of the National Dairy Development Board in late sixties meant to create a flood of milk in India's villages with funds mobilized through foreign food donations. In Kerala, the production of milk is concentrated in the small farm sector and ultimate supply is dependent on seasonal factors. The milk production in Kerala in 1999-2000 was 25.25 lakh tonnes and the demand was 23.73 lakh tonnes.
1.1 Statement of the problem
Indian Dairy industry is on the threshold of rapid growth and modernization. The industry is gradually diversifying to produce various milk products. The Kerala market is also being tested by various types of milk and milk products from various producers.
Milk marketing in Kerala continuous to be largely under private sector. Only 18 per cent of the total milk produced in the state is handled by organized co-operative sector. The milk and milk products market in Kerala is mainly controlled by the Kerala Cooperative Milk Marketing Federation Limited (MILMA), small dairies like Peoples Dairy Development Project (PDDP), Kalady; Malanadu Milk Products, Kanjirappally; Kerala Solvent Extraction Ltd. (KSE), Thrissur is also having significant share in their local markets. MILMA supplies 6.5 litres per day on an average and private dairies together is estimated to be selling 3.5 litres of milk per day. The changing food habits and consumer preference of Keralites have opened up new opportunities for marketing of various milk products in the state. To exploit this potential dairies like PDDP, KSE are planning to make a foray into the production and marketing of milk products.
With the onset of globalization the country is facing serious threats through import of milk and milk products. In this context the study to analyse and compare the marketing strategies for pasteurized milk need special emphasis.
1.2 Objectives of the Study
The Study has the following specific objectives :
1. To analyse and compare the market share of pasteurized milk of KSE Ltd.,
and the Kerala Cooperative Milk Marketing Federation Ltd.
2. To conduct SWOT analysis of KS Dairy Division and Kerala Cooperative
Milk Marketing Federation Ltd.
1.3 Methodology of the Study
Both primary and secondary data were used for the study. The primary data were collected through a sample survey through administering structured questionnaire to milk consumers in urban, semi-urban and rural centres.
a. Product Selection
The study covered liquid milk and its variants.
b. Sample design
Stratified random sampling method was used to select samples for investigation. As per Kerala Economics and Statistics Department Report (2001) the total population in the Thrissur District is about thirty lakhs.
A sample consisting of 50 household consumers each in urban area, semi-urban and rural area was selected randomly for the study.
1.4 Period of Study
From August, 2003 - October, 2003
1.5 Data Collection
A consumer survey using structured questionnaire was conducted for the purpose of collecting primary data during the month of August, September and October, 2003 (flush season). Individual consumers and social group members were selected as respondents. Secondary data from Kerala Animal Husbandry Department, Kerala Cooperative Milk Marketing Federation Ltd., Dairy Department, Kerala Agricultural University and FAO are also used for the study.
1.6 Statistical tools and techniques used:
Stratified random sampling method was used to select samples for investigation. The collected data were classified, tabulated and analysed with the help of averages, percentages and frequency distribution.
1.7 Scope of the Study
The study brings out potential of the pasteurized milk in Thrissur District and the strategies needed for making value added products like ice cream. The study also points out the required strategies to be adopted for achieving better results.
1.8 Limitations of the Study
As the study is conducted in Thrissur District only, the results arrived at can not be applied to other districts of the State. As random sampling is applied for the study, all consumers can not be covered. Since the market is so flexible, it can not be predicted with accurate data. Since there is seasonal variations for the utilization of milk in Kerala, three months study does not helps to bring out sustainable result.
1.9 Review of Literature
Philip Kotler observed that 'The aim of marketing is to make selling superfluous'. Marketing's task is to discover unmet needs and to prepare satisfying solutions (Kotler on Marketing - How to create, win and dominate markets – Philip Kotler).
Rakesh (1997) has found that the share of consumer expenditure on milk is increasing in both urban and rural areas, while that on cereals is decreasing. All this reflects on the increasing consumption of milk which would gain further momentum in years to come (Rakesh Saxena – "Demand for Milk and Milk Products" – Dairy India, 1997).
Vijay and Samar (1999) in their article "Economic Impact of WTO Agreement on the Indian Dairy Sector" suggested that today's consumer is increasingly interested in the quality and safety of the products. a Therefore, a comprehensive strategy for producing quality and safe dairy products should be formulated with suitable legal back up. (Ref: Vijay P. Sharma and Samar K. Datta – Economic Impact of WTO Agreement on the Indian Dairy Sector – Indian Dairyman November, 1999).
Ravi Shankar (2002) suggested that world trade in dairy products continues to be severely distorted by entry barriers such as quotas, subsidies, high import duties and non-tariff barriers such as animal health requirements, microbiological quality and environment contaminants. It is, therefore, difficult for any developing country to acquire a major share in the international market for dairy products. Nonetheless, India has the advantage of low cost milk production and could gain a small but significant foothold in the international dairy market in the next few years (Ravi Shankar "Structure and Policy Changes on Dairy Market Developments in India and Their Implications on International Trade and Investment" – The Co-operator November, 2002).
Kadirvel (2002) observed that in rural areas lack of awareness about clean milk production is accentuated with obsolete technology when compared to the west. Such factors related to hygiene reduces the quality of our milk products resulting in low demand for our dairy products in the world market. (Kadirvel. R - Limited investment but Consistent Growth - The Hindu - Survey of Indian Agriculture, 2002).
Amit Saha (2003) in his article on "Role of patenting in Indian Dairy Industry in the era of Globalisation" observed that if we now make proper planning for the future and take account of implications in respect of product patenting, then Indian share in the International Dairy Market will definitely increase. The increase in the exports of dairy products would speed up the economic development of the country as a result of which India could easily reach its dream GDP growth rate (Indian Dairyman, September, 2003).
CHAPTER - 2
AN OVERVIEW OF DAIRY INDUSTRY
2.1 Introduction
Man and milch animal lived in proximity and their relationship dates back to the origin of civilization. Prior to urbanization, the usual practice was to consume milk in its fresh form or after simple processing. The extra milk used to be converted into short-term conserved products or puddings that were consumed in a phased and leisurely manner. But urbanization alienated the modern man from the milch animal, resulting in the need for processing and packing of milk and milk products. Thus, dairy industry has brought new dimensions to the food processing industry.
This section reviews the major trends in global production and its trade.
2.2 Product Profile - Milk
Milk may be defined as the normal secretion of the mammary glands of mammals. Though nature designed milk as a food for the young, thousand of years ago mankind learned the possibilities of milk and milk products as a food, not only for the young but also for the adults. Milk is concerned as natures most perfect food.
Through scientific selection and breeding has greatly enhanced the milk production of milch animals especially cow. The milk of different species although contain the same constituent in general, varies in composition and properties in minor way.
Chemical composition of milk is described as an emulsion of fat in watery solution of sugar and mineral salts and with protein in a colloidal suspension. The constituents of milk is mainly divided into two i.e., water and dry matter. Dry matter can be divided as fat and solid no-fat. An average normal cows milk contains 87.25% of water, 4% of fat and 8.75% of solid non-fat.
Milk is being marketed after being pasteurisation. Pasteurisation is a process of heating of milk and milk products to atleast 72 degree Celsius and holding at such temperature for atleast 15 seconds in approved and property operated equipments and chilling the milk.
2.3 World dairy market
The dairy sector is economically important in most industrialized countries. Policy reforms in this sector will have significant impacts since milk generates more than 20 per cent of farm cash receipts in most OECD countries. High levels of Government intervention and regulations have characterised dairy sector the world over. The intervention have influenced the levels and location of dairy production and consumption around the world, prices paid for dairy products in domestic and world markets, levels and volatility of world trade and consequently the international market price. International trade in dairy products is dominated by processed products. Dairy products such as skimmed milk powder, cheese, whole milk powder, butter and protein components dominate the world market. The future of world dairy market looks bright as demand is expanding and production is catching up in several developing countries.
2.3.1 Milk Production
The production trend of the basic raw material of the world's dairy industry i.e., milk is perhaps unique amongst agricultural commodities. The main reason for this is that two-third of milk production is concentrated in the developed countries, where output in many countries is limited by production constraints and as a result changes little from year to year.
2.4 Dairy Sector – National Scenario
The dairy industry in India has been predominantly 'rural' in nature. At present the country is the largest producer of milk at the global level producing 84 million tonnes. The Uruguay Round of GATT and the WTO policies have resulted in Indian commitments to open the dairy sector to the world markets. This combined with a restructuring of Indian domestic agriculture policy under the macro-economic reforms in the 1999-2001 set the pace for reconstruction of the environment of operation for the Indian dairy industry.
2.4.1 Impact of trade liberalisation
The impact of liberalisation, privatisation and globalisation is evident in the growing market for milk and milk products due to the increasing disposable income of the middle class people of the country. This will further augment by the GATT provisions for a primary agrarian country like India.
Though India rank 1st in milk production accounting for about 13% of the total world milk production, it contributes only a negligible amount of 0.62% to the international trade.
The WTO regulations includes removal of quantitative restrictions on imports and exports, increase in market access and converting all non-tariff barriers to tariff. These conditions serve to increase world access to the Indian market, India and New Zealand are the only two major milk producing nations in the world that do not subsidise their dairy farmers.
Hence, our prices which are already competitive will become increasingly attractive in the world dairy market. So India has definite edge over developed countries in the world milk market. The price of milk in selected countries is given in Table 2.1.
Table 2.1. Price of milk in selected countries (USD)
Country
Price of 100 litres of milk
European countries
37.5
USA
22.8
Japan
85.5
Australia
22.5
New Zealand
20.2
India
18.8
2.4.2 Milk Production
Increasing Awareness: As India enters in an era of economic reforms, the livestock sector, is positioned to be a major growth sector. The fact that dairying could play a more constructive role in promoting rural welfare and reducing poverty, is increasingly being recognized. For example, milk production alone involves more than 70 million producers, each raising one or two cows/buffaloes. Cow dung is an important input as an organic manure for crop production and also used as fuel in rural areas. Cattle also serves an insurance cover for the poor households which are being sold during times of distress.
The progress in milk production in India is given in the Table 2.2.
Table 2.2. Progress in Milk Production
Years
Milk Production
(Million Tonnes)
1950-51
17.0
1960-61
20.0
1970-71
22.0
1980-81
31.6
1990-91
53.9
1999-00
78.1
2000-01
81.4
2001-02
84.6
Table 2.3 expresses the per capita availability of milk in India
Table 2.3. Per Capita Availability of Milk in India
Year
Per Capita Availability
( Grams / day)
1996
198
1997
200
1998
202
1999
203
2000
212
2001
225
2002
250
Source : DFPI Annual Report
Supply match demand: Efforts to increase milk production by dairy farmers are strongly influenced by the degree to which demand signals are transmitted through the marketing system. Demand in the urban scenario is rapidly increasing in tune with the supply generated by the farmers.
Surplus capacity: Further, new dairy plant capacity approved under the Milk & Milk Products Order (MMPO) has exceeded 100 million litres per day. The new capacity would surpass the projected rural marketable surplus of milk by about 40 per cent by 2005 AD.
2.4.3 The Indian Market – A Pyramid
India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of a vast market for low-cost milk. The bulk of the demand for milk is among the poor in urban areas whose individual requirement is small, may be a glassful for use as whitener for tea and coffee. Nevertheless, it adds up to a sizable volume. In the major cities lies an immense growth potential for the modern sector. Presently, barely 7878 out of 3,700 cities and towns are served by its milk distribution network. Dispensing hygienically packed milk segment would double in the next five years, giving both strength and volume to the modern sector.
a) Growing Volumes
The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the country's population. An estimated 50 per cent of the total milk produced is consumed here. The expected rise in urban population would be a boon to Indian dairying. Presently, the organized cooperative, private and the traditional sector cater to this market.
The consumer access has become easier with the information technology. The number of households with TV has increased from 23 million in 1980 to 45 million in 1995. About 34 per cent of these households in urban India have access to satellite television channel.
b) Potential for further growth
Of the three A's of marketing – availability, acceptability and affordability, Indian dairying is already endowed with the first two. People in India love to drink milk. Hence no efforts are needed to make it acceptable. Due to ample scope for increasing milk production its availability is not at all a problem. It leaves the third vital marketing factor affordability. How to make milk affordable for the large majority with limited purchasing power? That is essence of the challenge. One practical way is to pack milk in small quantities of 250 ml or less in polythene sachets. Already, the glass bottle for retailing milk has given way to single-use sachets which are more economical. Another viable alternative is to sell small quantities of milk powder in mini-sachets, adequate for two cups of tea or coffee.
c) Emerging Dairy Markets
· Food service institutional market: It is growing at double the rate of consumer market.
· Defense market: An important growing market for quality products at reasonable prices.
· Ingredients market: A boom is forecast in the market of dairy products used as raw material in pharmaceutical and allied industries.
· Parlour market: The increasing away-from-home consumption opens new vistas for ready-to-serve dairy products which would ride piggyback on the fast food revolution sweeping the urban India.
India, with sizable dairy industry growing rapidly and on par with modernization, has a bright future in the Dairying Sector. The growth we have achieved in the dairy sector needs to be sustained and improved in future to increase the per capita income of the rural down trodden society and to contribute significantly to the Indian economy.
d) Marketing Strategy
Two key elements of marketing: Focus on strong brands and, product mix expansion to include UHT milk, cheese, ice creams and spreads. The changing marketing trends will see the shift from generic products to the packaged quasi, regular and premium brands. The national brands will gradually edge out the regional brands or reduce their presence. The brand image can do wonders to a product's marketing as is evident from the words of Perfume Princess Coco Chanel: In the factory, we pack perfume; in the market, we sell hope!
2.5 Dairying in Kerala State
Though Kerala has none of the natural attributes to make it an ideal dairy zone (the year round hot and humid climate, highland pressure, scarcity for fodder etc., both dry and green, high rain fall and consequent mineral depletion from soil), cattle development programme is very successful in transforming 78% of unproductive cattle population to higher producing crossbreeds with an average daily yield of six litres per animal. As a result milk production has increased from 2.2. lakh tones during 1963-64 to around 28 lakh tones in 2001-2002. Dairying is gradually attaining the status of sustainability in the state. It provides lucrative, subsidiary and self-employment ventures to many unemployed youths.
2.5.1 Milk Production in Kerala
Table 2.4 represents the milk production in Kerala.
Table 2.4. Milk Production in Kerala
(Qty. in lakh tonnes)
Year
Production
Percentage Growth
1995-96
21.92
-
1996-97
22.58
3.01
1997-98
23.48
3.99
1998-99
31.11
32.52
1999-00
33.81
8.67
2000-01
36.75
8.67
Source : Dairy Business India - 2001
The milk production in the state made steady progress.
Table 2.5 represents Per Capita Availability of Milk in Kerala.
Table 2.5. Per Capital Availability of Milk in Kerala
Year
Per Capita Availability
(Grams / Day)
Percentage Growth
1995-96
198
-
1996-97
196
- 1.01
1997-98
201
2.55
1998-99
252.27
25.5
1999-00
268.36
6.38
2000-01
285.47
6.38
Source: Dairy Business India - 2001
Though various marketing channels fulfill demand for milk in the state, the flush season flood of milk hitherto remain a problem. Product diversification, a best option to tackle this problem is not completely explored.
The mushrooming of private dairies which bring in large quantities of milk from neighbouring states thereby flouting quality norms holds a potential health hazard to Kerala.
Conclusion
Economic liberalization has changed the very complexion of the dairy industry in India. The industry is opened up for multinationals and other corporate entities by removing all entry barriers. The thrust of the industry should be on value added products for the domestic and export markets. The changing food habits of the middle class in India will give necessary boost to the industry to aim for higher growth in the coming days.
CHAPTER - 3
MARKETING STRATEGIES
Marketing task is identifying or satisfying customer needs in such a way as to achieve the organisation's objectives for profitability, survival or growth.
The marketing strategy defines target markets, what direction needs to be taken and what needs to be done in broad terms to create a defensible competitive position compatible with overall corporate strategy within those markets. It is, therefore, concerned with many of the aspects considered in buyer behaviour as well as the decision to target particular market segments.
Marketing strategies need to be guided by what organisation as a whole is striving for – what its objectives, are and what resources it has to implement them.
3.1 Marketing Mix
Understanding the nature of customers and their needs and wants is only the first step, however, the organisation needs to act on that information, in order to develop and implement marketing activities that actually deliver something of value to the customer. The means by which such ideas are turned into reality is the marketing mix.
3.2 Product
This include creation, development and management of products.
3.3 Price
Price is not necessarily a straightforward calculation of costs and profit margins. Price has to reflect issues of buyer behaviour, because people judge 'value' in terms of their perceptions of what they are getting for their money. Customers may use price as an indicator of quality and desirability for a particular product, and thus price can reinforce or destroy the work of other elements of the marketing mix.
3.4 Place (Channels of distribution to be employed)
It is concerned with the decision on moving goods from the producer to the target consumers. It includes transportation, storage, warehousing, packaging etc. It ensures availability of products at the right time, right place and in the right form. Decision regarding distribution channels are of utmost important because they intimately affect all other marketing mix choices and because, once made, they are not easily changed. Channels of distribution are the most powerful component of marketing mix elements.
3.5 Promotion
Short term incentives to encourage purchase or sale of a product or service. Sales promotion deals with promotion of sales by offering incentives which are essentially non-recurring in nature.
Conclusion
In today's rapidly changing and highly competitive international environment a business can be successful only if its offer matches the wants of buyers at least as effectively as its best competitors. Marketing management is the task of planning this match. An organization's success in creating a differential advantage determines its competitiveness and profit performance. The changing environment – changing wants, new competitors and technologies, different stakeholder pressures on the firm – means that a differential advantage is never secure.
In a competitive environment profits can be earned only by selling more differentiated products which satisfies the customer. If proper strategy is not adopted the company may lose its market. Careful understanding and constant analysis is required to develop a proper marketing strategy.
CHAPTER - 4
INTRODUCTION TO THE ORGANIZATION
4.1 KSE LTD.
KSE Ltd., Irinjalakkuda, Thrissur District, incorporated in 1963 is a highly successful industry in Kerala known for its products basically animal feeds, edible oils and dairy products. KSE Ltd., is the market leader in the cattle feed industry and has units in Tamil Nadu and Karnataka states apart from Kerala.
The company is also involved in exporting cattle-feed to various countries and thereby contribute foreign exchange to the exchequer.
KSE Ltd., has 1033 employees in its rolls. The company is an exception to the adverse labour conditions that are prevailing in the state.
4.1.1 Management
Highly qualified and experienced professionals look after the affairs of the company. The Company is listed in Cochin, Mumbai and Chennai Stock Exchanges.
4.1.2 Dairy Division
KSE Ltd., started operation of its dairy division on 22nd January 2000. The idea of diversification into dairy industry was the outcome of desire for forward integration of the cattle feed business of KSE Ltd. The company market a wide range of dairy products in the market. It's main area of operation is Thrissur and also some parts of Ernakulam and Malappuram. The products are Toned Milk, Toned Homogenized milk, Ghee, Curd, Sambharam and Ice Cream. In Thrissur the main competitors for the dairy products of KSE Ltd., are Milma, Sakthi, Palazhi, PDDP and Milvay.
KSE Ltd., has milk processing units in Thalayuthu (Tamil Nadu) and Konikkara (Kerala – Thrissur District) having processing capacity of 20,000 litres and 30,000 litres per day respectively. The Konikkara plant also manufacture ghee, curd, sambharam and Ice Cream. The brand name of milk and milk products is "KS" and the brand name of Ice Cream is "Vesta".
4.1.3 Objectives
KSE Ltd., established dairy division in Thrissur district as part of the forward integration to its already existing business Many milk societies are dealers of KSE KSE Ltd., established dairy division in Thrissur district as part of the forward integration to its already existing business Many milk societies are dealers of KSE Ltd., in cattle feed business. The dairy plant was set up to provide remunerative price for milk to these societies and to provide employment to many people. The dairy division of KSE Ltd., aims at providing hygienic milk and milk products to the consumers by carrying out stringent quality check in the plant.
4.1.4 Procurement of Milk
Thrissur dairy procure 10,000 litres of milk from 68 collection centres in Thrissur district at two times daily i.e., in the morning and in the evening. An agent is appointed in those areas where around 150 litres of milk is available. Commission is provided to the agent on the basis of milk procurement. The procurement centres are provided with cattle feed of the KSE Ltd., at subsidised rate. 10,000 litres of milk is brought from Tamil Nadu daily and another 10,000 litres is brought from outsiders and cooperative societies in Tamil Nadu and Karnataka.
A chilling plant set up in Tamil Nadu (Thalayuthu) helps it in many ways. The surplus and lean season for milk in Kerala coincide with the lean and surplus season in Tamil Nadu ie., during the surplus season in Kerala it is lean season in Tamil Nadu and vice versa. Therefore adequate quantity of milk can be procured from Tamil Nadu during the lean season in Kerala. This helps the plant to meet the demand for milk throughout the year without difficulty.
4.1.5 Different Departments
1. Procurement
2. Production
3. Quality control
4. Marketing
5. Administration
6. Accounts
4.1.6 Marketing Strategies of KS
Thrissur dairy resort to direct sale, retail dealer and wholesale distributors.
The dairy sells milk and milk products directly to the institutional buyers. The dairy organises two time supply i.e, in the morning and in the evening.
The products are distributed through two type of dealers – retailers and wholesalers. There are 400 outlets (retailers) and 40 wholesale distributors in the Thrissur district. The dairy has two outlets of its own in Thrissur district.
A 7.7% (Re.1/-) commission for every 1 litre milk sold is given to the retailers/ wholesalers. The wholesale distributors are given some attractive incentives based on the quantity purchased.
The distribution takes place in two times in a day. There are 16 vehicles plying in the morning and in the evening. Milk is delivered at all sales outlets in time so as to enable the agents to supply the same to the consumers. Milk sachets are loaded and transported in good plastic trays so as to avoid breakage and leakage. Proper hygienic and sanitary condition is maintained in the dairy plant. The dairy division gives due importance to customer service. For marketing of milk products there are 6 wholesale distributors who take the products from the plant at Konikkara itself.
4.1.7 Promotional Activities
The Thrissur dairy's promotional activities include:
1. Incentive schemes to wholesale distributors.
2. Consumer programmes and contests.
3. Sales campaigns.
4. Issue of POP materials, leaflets and boards.
5. Erection of hoardings.
4.1.8 Competition faced by the Thrissur dairy
The dairy industry as such is affected by unhealthy competition among smaller players, leading to heavy discounts on sale of milk which essentially benefit the middlemen. There are ten brands of private milk and four cooperative brand available in Thrissur district. Besides, some vendors and households are selling milk in the urban, semi urban and rural areas in the district. Some traditional milk societies also sell milk to the consumers of nearby places.
4.2 The Kerala Cooperative Milk Marketing Federation Ltd. (KCMMF) (MILMA)
Kerala Cooperative Milk Marketing Federation (KCMMF) was formed in 1980. Milma is an organization of the milk producers successfully run by the producers and functioning for the producers truly on democratic principles. MILMA is synonymous with regularity in supply and quality of milk. The name MILMA represents 2500 primary milk cooperative societies encompassing 7 lakh dairy farmer members. The whole system is working under three tier system, at the lowest level primary cooperatives and above it three Regional Unions (i.e., Thiruvananthapuram Regional Cooperative Milk Producers Union, Ernakulam Regional Cooperative Milk Producers Union and Malabar Regional Cooperative Milk Producers Union) and State Level Federation. It is the market leader in the milk in Kerala and has 10 dairy plants capable of handling 8.5 lakh litres of milk per day, 14 milk chilling plants, 2 cattle feed plants, a milk powder plant and a well established training centre in Kerala. MILMA has 4800 distribution outlets in the state and over 18000 people working either directly or indirectly for the functioning of MILMA.
The Federation joined hands with National Dairy Development Board (NDDB) to be part of the national stream to promote cooperative brand. In the wake of competition from private sector, MILMA readily accepted well-planned marketing strategy of NDDB and mnemonic symbol of NDDB "Device of Drop" was introduced in the milk pouches in the state. Since June 2003 MILMA entered into a tie up with Mother Dairy for marketing of its milk products. A new company named 'Milma Foods Ltd.' was formed under Companies Act. Mother Dairy has 51% of share and MILMA has 49% of share in the company. This company is a 100% subsidiary of NDDB. The whole products produced by MILMA are being handed over to the new company and for marketing. MILMA has to supply quality milk products as per the requirements of the new company.
4.2.1 Management
The KCMMF was among the first Federations in India to have an elected Board. Thiruvananthapuram Regional Cooperative Milk Producers' Union was formed in 1985 and Ernakulam Regional Cooperative Milk Producers' Union was formed in 1986 followed by Malabar Regional Cooperative Milk Producers' Union in 1989. All the Regional Milk Unions have elected active members of the Board, thus ensuring that it is truly an Organisation of producers, run by the producers and functioning for the producers. The Board takes all policy level decisions and it is one of the few cooperatives run successfully on democratic principles.
4.2.2 Thrissur Dairy
The Thrissur Dairy Division (which has pasteurizing and filling facilities) comes under the Ernakulam Regional Cooperative milk Producers Union. The dairy plants under this region have the capacity to produce 1,70,000 litres of milk per day. The Thrissur dairy has capacity of 60,000 litres per day. MILMA markets milk in 500 ml, 1000 ml in sachet and in bulk, ghee, butter, curd, sambharam, ice cream, sweets (peda and cream roll), beverages (refresh and cardamom milk) and cattle feeds in the brand name "MILMA".
Thrissur Dairy plant started in 1986 with a capacity to produce 60,000 litres per day. Products of Thrissur dairy are milma toned milk, double toned milk, jersey milk, curd, sambharam, ghee, peda and flavoured milk. Other milk products like palada mix, ice cream etc., are brought from Chalakkudy and Edappally dairy which comes under the Ernakulam Regional Cooperative Milk Producers' Union. Milk is filled in 500ml packets, ghee in 100 ml, 200 ml, 500 ml bottles, 1 kg, 2 kg, 5 kg and 15 kg and sambharam in 200 ml packets.
4.2.3 Procurement of milk
Thrissur dairy procures milk from 141 Anand Pattern Cooperative Societies (APCOS) and 20 Non - APCOS two times a day i.e., approx. 18000 litres in the morning and 7000-8000 litres in the evening. The balance milk is brought from nearby Chalakkudy and Ernakulam plants and some quantity is met by making reconstituted milk as per PFA regulations. If any excess quantity is left out that is sent to the Ernakulam diary.
The total procurement of milk by the KCMMF during the year was 2335 lakhs litres. The Dairies under ERCMPU collected 584 lakhs litres of milk during the year 2002-03.
Milk procurement is not uniform throughout the year. In summer - lean season - February middle to May middle) production is low while consumption is more. Demand for milk is also fluctuates in festival seasons like Onam, Diwali, Sabarimala occasions and marriage occasions. During winter and rainy seasons - flush season - production is more than the consumption of milk. To deal with the situation, surplus milk in flush season is converted into milk powder. In summer when milk is not available sufficiently to meet the demand milk is procured from the APCOS of neighbouring states and also reconstituted milk is prepared which is universally accepted as per PFA provisions.
4.2.4 Objectives of Thrissur Dairy
The objectives of the Thrissur dairy is to carry out activities that gives maximum benefit to the farmers and to the consumers as well. The major objectives of the diary are:
1. To undertake and encourage production of milk.
2. To provide input activities to milk societies.
3. To arrange training programmes.
4. To take up welfare activities.
5. To encourage research and development activities.
4.2.5 Different departments in Thrissur Dairy
1. Procurement.
2. Production.
3. Quality control.
4. Marketing.
5. Personnel & Administration.
6. Accounts.
Marketing department will ensure the sale of the milk procured from farmers with maximum returns, by keeping sustained growth in the sales, making available various type of milk and value added products of milk for various market segments by ensuring quality product and better services to the dealers and consumers.
The peculiar problems of dairy industry such as bulkiness, perishability, seasonal variation in supply, marketable surplus, lack of storage facilities etc., make dairy products marketing complex. The middlemen will exploit the farmers/ producers unless a farmer oriented marketing system is developed and practised.
The main market of the Thrissur dairy is entire Thrissur District.
4.2.6 Marketing Strategy
The total sales of milk by the KCMMF during the year was 2663 lakhs litres. The dairies under ERCMPU sold 632 lakhs litres of milk during the year 2002-03. Thrissur diary resort to direct sale, retail dealer and wholesale distributors/ locational distributors.
The dairy sells milk and milk products directly to the institutional buyers like hospitals, hotels, shops, public sector undertakings, social welfare department (Anganwadis), temples etc.
The products are distributed through two type of dealers - retailers and wholesalers/locational distributors. There are 2000 outlets (retailers) and 600 agencies in the Thrissur district. The dairy has four outlets of its own in Thrissur district. To increase maximum reach and to increase the volume of business, small shops are also considered for milk supply without insisting for security deposit.
A 3% commission for every 1 litre milk sold is given to the retailers/ wholesalers. An additional Rs. 0.50 per litre is given to locational distributors who will
keep the product available throughout the day. For the bulk supply of liquid milk, Rs.0.20 reduction per litre is given.
The distribution takes place in two times in a day i.e., at 7.00 A.M. and 5.30P.M. 13 routes are covered in the morning supply and 9 routes are covered in the evening supply. There are 13 vehicles plying in the morning and 9 vehicles in the evening. There are two wholesale distributors for milk products in the district. In addition to that one distribution vehicle exclusively for milk products is also plying in the district for uninterrupted supply of milk products to retail outlets. The milk is supplied in insulated vehicles so that the milk is reached at the distribution points in good condition.
4.2.7 Promotional Activities
The Thrissur dairy's promotional activities include :
1. Incentive schemes to dealers.
2. Consumer programmes and contests.
3. House supply schemes and contests.
4. Sale campaigns.
5. Issue of POP materials, leaflets and boards.
6. Erection of hoardings.
7. Public Relation work which include public awareness campaigns on the quality of milk.
4.2.8 Competition faced by the Thrissur dairy
Marketing function is responsible for identifying or satisfying customer needs in such a way as to achieve the organisation's objectives for profitability, survival or growth.
There are ten brands of private and three cooperative milk brands available in Thrissur district. Besides, some vendors and households are selling milk in the urban, semi urban and rural areas in the district. Further, relaxation of MMPO orders paved way for entrance of more private milk sellers in to the milk market who are giving a stiff competition to Milma. Some traditional milk societies also sell milk to the consumers of nearby places.
Milk flow from Tamil Nadu at a cheaper rate has affected the growth in sales volume of the Milma. As the people are not aware of the quality and appearance of packet is somewhat similar, people used to purchase milk considering that the milk is of Milma.
CHAPTER - 5
MARKET POTENTIAL FOR MILK
Market potential represents both the realised and unrealised total 'capacity to buy' existing in a market. The calculation includes all the goods and services offered by all the sellers competing in the particular market over a specific period of time.
The daily consumption of milk in Kerala is about 35.53 lakh litres including institutional consumption. The average daily production of milk in Kerala is estimated to be 32.72 lakh litres per day. Hence there is shortage of 2.81 lakh litres per day. This deficit is being met by purchase of milk and milk products from neighbouring states.
The demand for milk and milk products has been increasing year after year. This is due to the increase in income and adopting better and balanced dietary habits. The availability of good quality milk and milk products is another reason for increased consumption of milk and milk products.
On a random survey with people who are buying liquid milk revealed that majority are interested in purchasing the product if it is delivered at their residence in time. The table 5.1 given below shows the willingness of the liquid milk users to buy packet milk:
Table 5.1. Monthly potential of packet milk
Particulars
No. of respondents
Not using packet
Milk (%)
No. of respondents
Willing to use
Packet milk (%)
Present
demand
Expected
demand
Average
Qty. (monthly)
Average
Qty. (monthly)
Urban
100
100
131
(100%)
211
(61.07%)
Semi
Urban
100
100
120
(100%)
204
(70%)
Rural
100
60
60
(100%)
95
(58.33%)
Note: Figures in bracket indicate growth of expected demand of average quantity with respect to present average quantity.
This reveals that in urban and semi urban areas, all respondents are willing to use the packet milk and the expected average quantity demanded was 211 litres when compared to the present average quantity demanded (131 litres) in urban area. This shows that the future demand found to be 61.07% of the present demand in urban area. Future demand is found to be 70% of the present demand in semi urban area. In the rural area, 60% respondents who are not using packet milk expressed their willingness to use it and the future demand in rural area it found to be 58.33%.
Further, a survey of the shops/bakeries who are not stocking packet Milk and milk products revealed that all are willing to stock the milk. The table given below shows the willingness to stock packet milk by the shops/ bakeries:
Table 5.2.
Particulars
No. of shops/ bakeries Not stocking packet Milk (%)
No. of shops/ bakeries
Willing to stock
Packet milk (%)
Present
demand
Expected
Demand
Average
Qty. (monthly)
Average
Qty. (monthly)
Urban
100
100
148
(100%)
254
(71.62%)
Semi
Urban
100
100
178
(100%)
281
(57.86%)
Rural
100
50
43
(100%)
64
(48.83%)
Note: Figures in bracket shows the growth of expected demand of average
Quantity with respect to present average quantity.
This reveals that in urban and semi urban areas, all respondents are willing to stock the packet milk and the expected average quantity demanded was 254 litres when compared to the present average quantity demanded (148 litres) in urban area. This shows that there will be an increase of 71.62% of the present demand in future in the urban area and 57.86% of the present demand in future in the semi urban area. In rural area, 50% of the shops were not selling the packet milk expressed their willingness to stock packet milk and thus future demand found to be 48.83%.
CHAPTER - 6
SWOT ANALYSIS
1) KERALA COOPERATIVE MILK MARKETING FEDERATION LTD.
(KCMMF)
STRENGTHS
Ø Governed by producer farmers from the primary society to the state level federation – democratically elected Board of Directors.
Ø Part of an organisation with 700000 members and 350000 daily milk pourers.
Ø Centralised body – Board of Directors of KCMMF Ltd., evolves policy decisions pertaining to milk procurement to marketing.
Ø Wide network of 2400 cooperative societies in the entire state of Kerala State Organisation which has 76 per cent share in Kerala's urban liquid milk market.
Ø Direct contact and link with producer farmers.
Ø Organisation with well trained, experienced and dedicated professionals and technocrats.
Ø Rendering effective veterinary service by realising nominal fee from farmers and supply of quality balanced cattle feed at affordable prices.
Ø ERCMPU has a well-established Veterinary Wing at Ernakulam.
Ø Network of 10 most modern dairy plants, 14 chilling plants, two cattle feed plants, a milk powder plant and a well established training centre to conduct need based and result oriented training programmes for all functionaries.
Ø Effective calf rearing and mastitis control programmes.
Ø General Health care of animals.
Ø Effective public relations programmes.
Ø Cattle insurance.
Ø Infertility treatment.
Ø Pension scheme for farmers.
Ø Scholarships for higher education for children of member farmers.
Ø Prime supplier to Government for its scheme "A cup of Milk and Shake Hand" – the scheme under the Social Welfare Department for providing 200 ml of milk per day to Children between 6 months and 6 years.
Ø First cooperative in whole of India to have developed in-house, full-fledged Enterprise Resource Planning software for Dairy sector and implemented.
WEAKNESS
Ø Though KCMMF is a commercial organisation it is governed and abide by Kerala Cooperative Societies Act.
Ø Unique pattern for rendering dairy cattle health care service.
Ø Do not provide any financial assistance for any production enhancement programmes.
Ø No authentic information on milk production and productivity of animal.
Ø High cost of veterinary input programmes.
Ø Low productivity of cattle.
Ø Milk production potential of one generation is not transferred to the next generation.
Ø Unrestricted movement of deceased animals.
Ø Lack proper campaigns to popularise milk and milk based products.
OPPORTUNITIES
Ø Health coverage of dairy cattle to be taken up.
Ø The quality of milk is the main criteria.
Ø Production cost of milk is high and uneconomic if labour incurred is accounted.
Ø Milk consumption habit is to be developed among the consumers since the present market requirement of milk is for coffee and tea sector only.
Ø The bacterial quality of milk coming out of udder is highly superior and comparable to that produced in other developed countries. But the milk reach at dairy dock is inferior due to the contamination and the higher ambient temperature. So the cooling system, cold chain transport etc., is very essential for which support from Government is essential.
Ø The quality of milk received at dairies is not satisfying the standard prescribed by the statutory provisions of PFA for cow's milk. The genetic influence in this respect is to be analyzed and implemented.
Ø Schemes such as 'A Cup of Milk to School Children' can improve milk consumption and can tide over the surplus milk procurement during flush season.
Ø Higher literacy rate and health consciousness can further increase the per capita milk consumption from present 220 gms to 300 gms.
Ø Involvement of large number of NGOs in Animal Husbandry and Dairy activities as an income generating activity for unemployed youth and weaker sections of society.
Ø Product diversification is to be explored.
Ø Development of milk based sweet industry.
Ø Increasing the home delivery of milk.
Ø To include animal husbandry as the Income Generation Programme (IGP) of the Self Help Groups (SHGs). The Veterinarians can give all the logistic Support and training to those SHGs taking up animal husbandry as IGP. Group approach can solve many of the problems faced by the dairy industry.
THREATS
Ø Reducing cattle population with low productivity.
Ø Cattle holding per farmer is below 2 cows.
Ø Dairying with imported labour is unaffordable.
Ø Reduction on agriculture land.
Ø Shrinking of graze land.
Ø Dwindling crop pattern – cattle friendly corps are less.
Ø Farmers are more interested on cash crops.
Ø Kerala is offering maximum consumer price for Milk compared to neighbouring states.
Ø The cheap milk from neighbouring states takes away the market for fluid milk.
Ø Unrestricted movement of milk and milk products to the state without any check or control by Government agencies.
Ø Always face competition in milk marketing.
Ø Inadequate feed and fodder supply.
Ø The unemployed youth not keen to take up cattle rearing as a meant for livelihood.
Ø Lack of coordination between various agencies.
Ø Higher incidence of mastitis and infertility.
Ø Government support for dairy farmers is minimum compared to other agricultural sectors like Rubber, Coconut etc.
Ø Interest in farming (including dairying) is declining.
Ø Liberalisation of dairy industry.
Ø Decline of Government livestock services.
2) KSE Ltd. (Dairy Division)
STRENGTHS
Ø Part of a multi unit (having production units in Irinjalakkuda, Palakkad, Kottayam, Konikkara in Kerala State and Swaminathapuram and Thalayuthu in Tamil Nadu State and Mysore in Karnataka State), multi product company (products such as Cattle Feed, Poultry Feed, Duck Feed, Edible oils, and Milk and Milk Products) and exporter of Cattle Feeds.
Ø Part of a company which is listed in the three stock exchanges in the country.
Ø Part of a Leader in the market for Cattle Feed.
Ø Sufficient and capable marketing personnel.
Ø Continuous profit making company thus financially healthier organization.
Ø No labour problems, hence no man days left.
Ø Reputation and brand image of the KS for the quality of its products.
Ø Dairy industry is forward integration of other two segments and thus can service the customers of those two segments.
Ø Majority of the milk societies in the Thrissur District are dealers of KSE Ltd., for cattle feed, poultry feed and duck feed.
Ø Financial strength of the parent company helps to withstand the unhealthy competition in the industry and leads to better purchasing power.
Ø Employs best professionals in the field.
Ø Locational advantages being adjacent to National Highway.
Ø Better administrative control is possible from Irinjalakkuda where Registered Office of KSE Ltd., is situated.
Ø Chilling plant in Thalayuthu (Tamil Nadu) helps Dairy Division in Konikkara during the surplus season and in lean season of milk in Kerala as this coincides with the lean and surplus season in Tamil Nadu thus helping it to meet the demand of milk in Kerala.
Ø Could achieve a commendable market share in the field of Milk in Thrissur district within a short span.
WEAKNESS
Ø Not much service rendered to dairy cattle health care.
Ø Do not provide any financial assistance for any production enhancement Programmes.
Ø No authentic information on milk production and productivity of animal.
Ø No veterinary programmes are conducted.
Ø Low productivity of cattle.
Ø Milk production potential of one generation is not transferred to the next generation.
Ø Unrestricted movement of deceased animals.
Ø Unable control the procurement price and selling price.
Ø Absorbing a significant portion of the increase in the ingredient costs by itself.
Ø Lack proper campaigns to popularise milk and milk based products.
Ø Lack of brand awareness among people on the products of the company.
Ø Frequent complaints especially on the packing by the consumers.
Ø Promotional measures are non-aggressive.
Ø Lack of public relations programmes.
OPPORTUNITIES
Ø Health coverage of dairy cattle to be taken up.
Ø The quality of milk is the main criteria.
Ø Production cost of milk is high and uneconomic if labour incurred is accounted.
Ø Milk consumption habit is to be developed among the consumers since the present market requirement of milk is for coffee and tea sector only.
Ø The quality of milk received at dairies is not satisfying the standard prescribed by the statutory provisions of PFA for cow's milk. The genetic influence in this respect is to be analyzed and implemented.
Ø Higher literacy rate and health consciousness can further increase the per capita milk consumption from present 220 gms to 300 gms.
Ø Explore the possibility of involvement of large number of NGOs in Animal Husbandry and Dairy activities as an income generating activity for unemployed youth and weaker sections of society.
Ø Product diversification is to be explored.
Ø Lack proper campaigns to popularise milk and milk products.
Ø Development of milk based sweet industry.
Ø Increasing the home delivery of milk.
Ø To explore the possibility of including animal husbandry as the Income Generation Programme of the Self Help Groups (SHGs). The Veterinarians can give all the logistic support and training to those SHGs taking up animal husbandry as IGP. Group approach can solve many of the problems faced by the dairy industry.
THREATS
Ø Reducing cattle population.
Ø Cattle holding per farmer is below 2 cows.
Ø Dairying with imported labour is unaffordable.
Ø Reduction on agriculture land.
Ø Dwindling crop pattern - cattle friendly corps are less.
Ø Farmers are more interested on cash crops.
Ø Kerala is offering maximum consumer price for Milk compared to neighbouring states.
Ø The cheap milk from neighbouring states takes away the market for fluid milk.
Ø Unrestricted movement of milk and milk products to the state without any check or control by Government agencies.
Ø Always face competition in milk marketing.
Ø Inadequate feed and fodder supply.
Ø The unemployed youth not keen to take up cattle rearing as a meant for livelihood.
Ø Lack of coordination between various agencies.
Ø Higher incidence of mastitis.
Ø Government support for dairy farmers is minimum compared to other agricultural sectors like Rubber, Coconut etc.
Ø Interest in farming (including dairying) is declining.
Ø Liberalisation of dairy industry.
CHAPTER - 7
MARKETING STRATEGY FOR ICE CREAM
AND OTHER VALUE ADDED PRODUCTS OF MILK
Though various marketing channels fulfill demand for milk in the state with MILMA taking the lead, the flush season flood of milk hitherto remains a problem. Product diversification, a best option to tackle this problem is not completely explored by the manufacturers. Kerala should take example from the North India's experience. During Holy, Diwali, Dashera or other festivals the milk based sweet industry works overnight to meet the demand. Over two dozen varieties of milk based sweets can be found in the sweet meat stalls in addition to paneer, curd and lassi churned and prepared. The average milk consumption in Punjab is 750 ml as against less than 220 ml in Kerala. Here lies the skill in inventing new things that are suitable to the consumers in the state and launch an intensive long-term campaign to popularise milk and milk products. It could even include strategies like promoting tea and coffee with more milk as whitener, selecting few entrepreneurs from all over the state and getting them trained in the sweet industry of North India, sending a team to study the consumption pattern/behaviour of milk and milk based products in the North India.
MILMA has many milk based products such as ghee, butter, ice cream, curd, peda, cardamom milk, curd, lassi, kulfi, sip up, skimmed milk powder, dairy whitener, cream roll, palada, paneer, chocolik and yogurt whereas KS is bringing out milk based products such as ghee, sambharam, curd and ice cream only.
Even though MILMA is marketing many milk based products, all those are not available throughout the state. Some products such as Lassi, Kulfi, Palada, Cream roll, Paneer, Chocolik etc., are available in selected areas only. Especially during summer the sale of Lassi can be spread throughout the state so that the people will become acquainted to the habit of drinking Lassi instead of other beverages. Like that sale of Kulfi can also be spread step-by-step. But consumer awareness campaigns are to be organised for better sale.
Another area where manufacturers has to concentrate is the milk based sweet industry. The possibility is to be explored so that many varieties of sweets are made available for the people. We need not just follow the North, but to innovate in this field by knowing our consumer tastes and preferences.
As far as Ice Cream is concerned, there are many local players in Thrissur district apart from national brands and some small ice cream manufacturing units whose products were sold by vendors in cycles. The brands now available in Thrissur district are, Baskin Robbins, Kwality, Joy, Lazza, Uncle John, Pappai, Milma, Vesta etc. Vesta and Pappai are the recent addition to the industry. The different varieties, to mention some, are vanilla, strawberry, chocolate, sundae, con top, chocobar, etc.
There exist stiff competition in the ice cream market. The storage of ice cream is a big problem faced by the retailers and the wholesale distributors due to undeclared power cuts in the state. Though some are using insulated containers, huge quantity can not be stored for long time in the containers.
All the brands except Baskin Robbins have whole sale distributors and retailers in the district. Milma is constantly supplying directly to wholesale distributors as well as retailers with their own insulated exclusive vehicle for milk products plying in the district. Milma is also selling it through their four own outlets in Thrissur.
KS is having wholesale distributors for its milk products who used to take products from their factory. KS during the introduction stage, organised 'Vesta Fest' for the college students as part of the awareness campaign among the college students. Within a small span, Vesta could achieve good results on account of its quality and availability when compared to other local brands.
Due to hike in electricity charges, many retailers find it difficult to deal with the ice cream as they say that they are not properly benefited out of this business. Even then, due to the better incentive schemes given by the manufacturers some are still doing the business. The only alternative left is to push the product through aggressive advertisement campaigns and sponsoring the colourful events where the children, teenagers and youth are likely to attend in large number.
Since kids are a special segment for the Ice Cream market, it is better to resort to TV advertising as TV advertising holds the key to kids' spending decisions, according to the findings of an online study conducted by the Media Consumer Insights division of communications services major Group M. As the decision of the kids also influenced by the peer group and parents, TV advertisement has good results. Identifying 'Kids' icons' for marketing of ice cream will also meet with success.
CHAPTER - 8
ANALYSIS AND INTERPRETATIONS
TABLES AND EXHIBITS
8.1 Age Group Surveyed
Age group
Area
20-30
(%)
30-40
(%)
40-50
(%)
>50
(%)
Total
(%)
Urban
10
50
30
10
100
Semi Urban
10
12.5
55
22.5
100
Rural
35
25
20
20
100
The age group studies revealed that in urban area 80% of the people were of middle aged, in semi urban it is 67.5% and in rural it is 45% which means that majority of the people using packet milk was middle aged.
8.2 Gender Survey
Area
Male (%)
Female (%)
Total (%)
Urban
70
30
100
Semi Urban
60
40
100
Rural
25
75
100
The gender-wise survey distribution of respondents revealed that out of 40 sample respondents in each area, the males were 70% in urban, 60% in semi urban and 25% in rural whereas the females were 30% in urban, 40% in semi urban and 75% in rural. Thus, the male respondents were two and half times more than the female respondents in urban, one and half times in semi urban and in rural female respondents were three times more than the males.
8.3 Income Status
Income
Urban (%)
Semi Urban (%)
Rural (%)
2000-3000
-
15
20
3000-5000
25
50
25
5000-10000
50
20
37.5
>10000
25
15
17.5
Survey regarding the income status revealed that 50% of the people were having monthly income of Rs. 5000-10000 in urban, 20% of the people were having monthly income of Rs. 3000-5000 and in rural 37.5% of the people were having monthly income of Rs. 5000-10000.
8.4 Place of purchase
Area
Place
Urban (%)
Semi Urban (%)
Rural (%)
Milk Booth
60
60
90
Delivered at residence
40
40
10
Survey about the place of purchase of milk showed that 60% of the people in urban and semi urban area were purchasing milk from milk booth. 90% of the people in rural area were purchasing milk from milk booth. In urban and semi urban area, 40% people were getting delivery of milk at their residence where as in rural area only 10% surveyed were getting delivery of milk at their residence.
8.5 Quantity of Purchase
Area
Quantity
Urban (%)
Semi Urban (%)
Rural (%)
500 ml - 1 litre
80
70
70
2 - 3 litres
20
15
20
More than 3 litres
-
15
10
Regarding quantity of milk purchased daily, the survey revealed that in urban area 80% of the people were using 500 ml - 1 litre, in semi urban and rural areas 70% of the people were using 500 ml - 1 litre. 20% people in urban and rural areas were using 2 - 3 litres and that of semi urban area it was 15%. In semi urban area 15% were using more than 3 litres and that in rural area it was 10% whereas nobody uses more than 3 litres in urban area.
8.6 Preference of Brand
Area
Brand
Urban (%)
Semi Urban (%)
Rural (%)
Milma
75
50
70
KS
20
50
5
Others
5
-
25
The survey revealed that in urban area 75% people were preferred Milma brand milk, 20% preferred KS brand milk 5% preferred other brands. In semi urban area 50% each preferred Milma and KS brands and nobody preferred other brands. In rural area, 70% people were preferred Milma, 25% preferred other brands and 5% preferred KS brand.
8.7 Reason for Preference (Brand: Milma)
Area
Place
Urban
Semi Urban
Rural
Milma (%)
Rank
Milma (%)
Rank
Milma (%)
Rank
Safety
13
III
15
III
14
III
Quality
40
I
50
I
25
II
Availability
30
II
20
II
46
I
Goodwill of brand
7
V
10
IV
11
IV
Reputation of brand
10
IV
5
V
4
V
The results of survey revealed that in urban area, respondents who purchase Milma, 40% preferred it due to its quality which ranked first, 30% preferred it due to its availability and which ranked second and 13% preferred it due to safety which ranked third. In semi urban area, respondents who purchase Mima, 50% preferred due to its quality which ranked first and 20% preferred due to its availability which ranked second and 15% preferred due to safety which ranked third. In rural area, respondents who purchase Milma, 46% were preferred Milma due to its availability which ranked first, 25% preferred due to its quality which ranked second and 14% people preferred Milma due to safety which ranked third.
8.8 Reason for Preference (Brand: KS)
Area
Place
Urban
Semi Urban
Rural
KS (%)
Rank
KS (%)
Rank
KS (%)
Rank
Quality
37.5
II
20
II
-
-
Availability
50
I
65
I
100
I
Goodwill of brand
12.5
III
10
III
-
-
Reputation of brand
-
-
5
IV
-
-
The results of survey revealed that in urban area, respondents who purchase KS, 50% preferred KS due to its availability and ranked first, 37.5% preferred it due to its quality and ranked second and 12.5% preferred due to the goodwill of the brand which ranked third. In semi urban area, respondents who purchase KS, 65% preferred due to its availability which ranked first and 20% preferred due to its quality which ranked second and 10% preferred due to the goodwill of the brand which ranked third. In rural area, all respondents preferred KS due to its availability.
8.9 Reason for Preference (Other Brands)
Area
Place
Urban
Rural
Others (%)
Rank
Others (%)
Rank
Lower price
100
I
50
I
Credit
-
-
30
II
Availability
-
-
20
III
The results of survey revealed that in urban area, all respondents purchase other brands due to lower price, in rural area 50% respondents preferred other brands due to its lower price which ranked first, 30% preferred due to credit facilities which ranked second and 20% preferred other brands due to its availability which ranked third.
8.10 Duration of usage of preferred Brand
Brand
Duration
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
1-3 years
50
75
36
100
100
100
100
-
-
3-6 years
40
15
18
-
-
-
-
-
40
More than 6 years
10
10
46
-
-
-
-
-
60
The survey revealed that in urban area, 50% people were using Milma for 1-3 years, 40% for 3-6 years and 10% more than 6 years. In semi urban area 75% people were using Milma for 1-3 years, 15% for 3-6 years and 10% more than 6 years. In rural area 46% people were using Milma for more than 6 years, 36% were using for 1-3 years and 18% were using for 3-6 years. This phenomenon was due to the fact that the Milma is the oldest brand in the market.
As far KS brand in concerned, in urban, semi urban and rural area 100% people were using for 1-3 years. This is because KS is new brand in the industry.
The survey revealed that 100% people were using other brands for 1-3 years.
8.11 Opinion about price of the preferred brand
Brand
Particulars
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Low
-
-
-
-
-
-
100
-
50
Reasonable
100
100
100
100
100
100
-
-
50
As far as Milma is concerned, the survey revealed that respondents who purchase Milma and KS brands of milk in urban and semi urban areas were of the opinion that the price is reasonable. In the case of other brands, all respondents who purchase other brands in urban area were of the opinion that the price is low and in rural area 50% each opined that the price is low and reasonable.
8.12 Opinion about quality of the preferred brand
Brand
Quality
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Rural (%)
Best
-
20
6
-
20
-
-
-
Good
50
40
50
-
20
-
-
50
Average
50
40
44
100
60
100
100
50
The survey revealed that among the respondents using Milma, 50% opined that the quality of Milma brand is good and average in urban area. In semi urban area respondents using Milma, 20% opined that the quality of Milma is best, 40% said that the quality is good and 40% opined that the quality is average. As far as KS brand is concerned, in urban area 100% opined that the quality is average. In semi urban area 20% said that the quality is best, 20% opined that the quality was good and 60% said that the quality is average. In the case of other brands, in urban area all respondents opined that the quality is average and in rural area 50% opined that the quality is good and average.
8.13 Opinion about full time availability of the preferred brand
Brand
Availability
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Rural (%)
Yes
70
60
75
50
80
50
100
100
No
30
40
25
50
20
50
-
-
The results of survey on full time availability revealed that in urban area respondents who purchase Milma, 70% were getting fulltime availability and the rest were not getting milk all times. In semi urban area, 60% were getting full time availability and in rural area 75% were getting fulltime availability of Milma milk. As far as KS brand is concerned, in urban area, 50% were getting full time availability, in semi urban area 60% were getting full time availability and in rural area 50% were getting full time availability. In the case of other brands both in urban and rural areas, 100% were getting fulltime availability of milk.
8.14 Whether customers are purchasing milk based on price
Brand
Purchase based on price
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Rural (%)
Yes
30
20
54
25
40
50
100
40
No
70
80
46
75
60
50
-
60
The survey revealed that among the respondents purchasing Milma in urban area, 70% were purchasing milk not based on price, in semi urban area 80% were purchasing this brand not based on price and in rural area 54% purchasing Milma brand based on price. In the case of KS brand in urban area 75% people were purchasing this brand not based on price, in semi urban area 60% were purchasing KS brand not based on price and in rural area 50% were purchasing KS brand milk not based on price. As far as other brands are concerned, 100% people in urban area were purchasing milk based on price and in rural area 60% were purchasing milk not based on price.
8.15 Customer's opinion about the second choice if the preferred brand is not readily available
Brand
Second choice of brand
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Rural (%)
Milma
100
90
100
-
40
KS
80
90
50
-
-
-
-
-
Other available brand
20
10
50
-
10
-
100
60
The survey on the second choice of the brand showed in urban area, majority of the Milma users were preferred their second choice as KS. The KS brand users preferred Milma as their second choice. As far as other brand users are concerned they use any brands available if their preferred brand is not available.
8.16 Customers preference about the variant of milk
Brand
Variant of milk
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Rural (%)
Toned
60
80
86
100
100
100
100
100
Jersey/ Cow milk
40
20
14
-
-
-
-
-
The survey on the customers preference on the variant of milk showed that, for Milma, 60% people in urban area preferred toned milk, 80% people in semi urban area preferred toned milk and 86% people in rural preferred tone milk. For Jersey milk Milma has 40% urban users, 30% semi urban users and 14% rural users. As far as KS brand milk is concerned, 100% of its customers in urban, semi urban and rural areas preferred toned milk. The other brand users preferred toned milk only.
8.17 Availability and preference of home delivery
Brand
Home delivery
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Rural (%)
Availability
Yes
33
20
14
50
60
-
100
-
No
67
80
86
50
40
100
-
100
Preference
Yes
100
100
100
100
100
100
100
100
The survey about the availability of home delivery and preference of home delivery reveals that for Milma 67% people were not getting home delivery in urban area, 80% were not getting home delivery in semi urban area and 86% people were not getting home delivery in rural area. In the case KS 50% people were getting home delivery in urban area, 60% people were getting home delivery in semi urban area and 100% people in rural area were not getting home delivery. As far as other brands are concerned, people were getting home delivery in urban area and nobody gets home delivery in rural area.
The survey showed that all respondents in urban, semi urban and rural areas preferred home delivery of milk.
8.18 Awareness about the brand from
Brand
Media
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Rural (%)
TV
40
-
36
Radio
-
15
-
-
14
25
POP material
-
10
-
25
30
40
Word of Mouth
60
75
50
50
70
100
100
60
The survey showed that in the case of Milma, majority people came to know about the brand from word of mouth i.e., in urban area 60%, semi urban area 75% and in rural 50%. In the case of KS, in urban area 50% were came to know about the brand from word of mouth, in semi urban area 70% and in rural it was 100%. In the case of other brands, in urban area 100% people were came to know from word of mouth and in rural area 60% came to know from word of mouth.
8.19 Most influenced/attracted media
Brand
Media
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Rural (%)
TV
80
50
79
Radio
10
50
10.5
10
10.5
Word of mouth
80
50
100
100
100
The survey about the most influenced media showed that for Milma, in urban area 80% people were influenced by the TV advertisement, in semi urban area 50% each influenced by TV as well as Radio, in rural 79% influenced by TV advertisement. In the case of KS word of mouth was the most influenced media in urban (80%), semi urban (50%) and rural (100%). In the case of other brands, 100% people were influenced by word of mouth in urban and rural areas.
8.20 Preference of purchase of milk products of the brand
Brand
Products
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Curd
75
75
75
25
25
-
-
-
25
Ghee
62.5
50
50
20
25
12.5
17.5
25
37.5
Ice Cream
20
12.5
-
40
25
-
40
62.5
37.5
Peda
15
Flavoured milk
12.5
The survey showed that out of all respondents, 75% in urban, semi urban and rural areas were purchasing Milma curd. 25% of people in urban and semi urban areas were purchasing KS curd and 25% of people in rural areas were resorting to other sources. 62.5% people in urban area, 50% each in semi urban and rural areas were purchasing Milma ghee whereas 20% people in urban, 25% in semi urban and 12.5% people in rural areas purchase KS ghee.
8.21 Quantity of spoilage noticed monthly
Brand
Particulars
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Rural (%)
½-1 litre
17
10
3.57
25
20
-
-
25
2-3 litres
-
-
3.57
12.5
15
-
-
-
In urban area 17% revealed spoilage with an average of ½ - 1 litre for Milma in urban, 10% in semi-urban and 3.57% in rural. In the case of KS in urban area 25 per cent revealed spoilage with an average of ½ - 1 litre and in semi-urban area it was 20%. In urban area 12.5 per cent revealed spoilage with an average of 2 - 3 litres for KS and in semi-urban area it was 15%. As far as other brands are concerned in urban area 25% revealed spoilage with an average of ½ - 1 litre.
8.22 Receipt of compensation for spoilage milk
Brand
Particulars
Milma
KS
Others
Urban (%)
Semi urban (%)
Rural (%)
Urban (%)
Semi urban (%)
Rural (%)
No
100
100
100
100
100
100
The survey on the compensation received for the spoilage of milk revealed that nobody is getting any compensation over the spoilage of milk.
( THE REMAINING PART WILL BE PUBLISHED SOON....)
Monday, October 12, 2009
malayalam.politics on 12-10-2009
ഒക്ടോബര്പന്ത്രണ്ട്
കേരളത്തില് നവംബറില് നടക്കാനിരിക്കുന്ന ഉപതെരഞ്ഞെടുപ്പില് താഴെ പറയുന്ന ഫലം പ്രതീക്ഷിക്കുന്നു
എല്.ഡി.എഫ് --------ഒന്ന്
യു.ഡി.എഫ്.------------രണ്ട്
സ്ഥാനാര്ഥിനിര്ണയത്തില് ഇന്ന് അറിവായതില് കവിഞ്ഞ വ്യത്യാസങ്ങള് ഉണ്ടായാല് ഫലത്തില് ഒരു വ്യത്യാസം
ഉണ്ടാകാം.
പൌലോസ്
കേരളത്തില് നവംബറില് നടക്കാനിരിക്കുന്ന ഉപതെരഞ്ഞെടുപ്പില് താഴെ പറയുന്ന ഫലം പ്രതീക്ഷിക്കുന്നു
എല്.ഡി.എഫ് --------ഒന്ന്
യു.ഡി.എഫ്.------------രണ്ട്
സ്ഥാനാര്ഥിനിര്ണയത്തില് ഇന്ന് അറിവായതില് കവിഞ്ഞ വ്യത്യാസങ്ങള് ഉണ്ടായാല് ഫലത്തില് ഒരു വ്യത്യാസം
ഉണ്ടാകാം.
പൌലോസ്
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