KMF Project

Karnataka Milk Federation, DharwadExecutive Summary KARNATAKA COOPERATIVE MILK PRODUCERS' FEDERATION LIMITED (KMF) KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the third largest dairy co-operative amongst the dairy cooperatives in the country. In South India it stands first in terms of procurement as well as sales. One of the core functions of the Federation is marketing of Milk and Milk Products. The Brand ' ' is the household name for Pure and Fresh milk and milk products. KMF has 13 Milk Unions throughout the State which procure milk from Primary Dairy Cooperative Societies (DCS) and distribute milk to the consumers in various Towns/Cities/Rural markets in Karnataka. The first ever World Bank funded Dairy Development Program in the country started in Karnataka with the organization of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from World Bank, Operation Flood II & III. The dairy co-operatives were established under the ANAND pattern in a three tier structure with the Village Level Dairy Co-operatives forming the base level, the District Level Milk Unions at the middle level to take care of the procurement, processing and marketing of milk and the Karnataka Milk Federation as the Apex Body to co-ordinate the growth of the sector at the State level. Coordination of activities among the Unions and developing market for Milk and Milk products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid milk among the member Milk Unions is monitored by the Federation. While the marketing of all the Milk Products is organized by KMF, both within and outside the State, all the Milk and Milk products are sold under a common brand name NANDINI. Dharwad District Co-operative Milk Producers' Societies' Union Ltd Kousali Institute of Management Studies, Dharwad. 1 Karnataka Milk Federation, Dharwad The Union was established in the year 1986 under the Operation Flood II & III. The Union also later took over in 1988 the Milk Products Factory with a drying capacity of 2.10 Lakh Liters per day, earlier established by the Karnataka Milk Products Limited (Government of Karnataka Undertaking). The Dharwad Milk Union is Co-operative society among the 13 establishment, under KMF. The Dharwad Milk Union (DMU) is one of the most modern plants in the country. It is located in the spacious 25 acres of land, located in Lakamanahalli Industrial Area, adjacent to the Nation Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat. The Union covers the districts of Dharwad, Karwar, Haveri & Gadag, and has Chilling Centres at Gadag,Haveri, Sirsi, Ron, Nargund, Hirekerur & Kumta with chilling capacity of 0.80 Lakh Liters Per Day. The Union procures and sells on an average 0.68 Lakh Kgs per Day and 0.59 Lakh Liters Per Day respectively. There are 7 Bulk Milk Coolers in the Union. Project Details PROJECT TITLE: “CONSUMER PREFERENCE & BRAND AWARENESS TOWARDS NANDINI MILK & milk PRODUCTS in Hubli-Dharwad cities” OBJECTIVE: Kousali Institute of Management Studies, Dharwad. 2 Karnataka Milk Federation, Dharwad Consumers are attracted through competitively other milk brands. So main objective of the study is to know the consumer preference in choosing the milk and there product, and know the Nandini brand awareness about the Nandini Milk and other various kind of Nandini Milk Product in the consumer mind in the particular geographical area at Hubli-Dharwad cities. To analyze the consumer attitudes and perception towards price, quality, hygiene, long shelf life and Brand name.. To study what kind of family member group and income people are most interested to consume Nandini milk and their product. To find out what is the present level of loyal consumer of Nandini milk. To know consumer preference about the Nandini. To find out the satisfaction level of Nandini product availability and pricing To find out whether advertisement help the consumer in buying decision. I have carried out my studies by personally interviewing the customers from all the areas of Hubli and Dharwad. The sample size was 100. I had set the questionnaire based on the above said objectives very carefully. FINDINGS IN THE ORGANIZATION: Nandini products have a good brand image in the Market.  Pricing strategy of Nandini is appreciated by its customers.  Nandini is started with customer contact programs in order to get first hand feedback from its customer and also to improve its products.  The various private brands have been trying to give a really tough competition by giving the agents high trade margins.  DMU has a waste area of operation which is geographically spread and which leads high procurement and distribution charges. Kousali Institute of Management Studies, Dharwad. 3 Karnataka Milk Federation, Dharwad  Lack of consumer awareness about the wide range of products sold.  The dealers wants only more commission because they also suffer same problem with other brands also but they complains with us only.  The organization is playing an important role in developing the economic viability of the villages.  The powder making plant has taken an vital role in Dharwad Milk Union. SUGGESTIONS ➢ ➢ ➢ ➢ ➢ The retailers and dealers should be satisfied with commission and schemes so that they can improve the sales in the market. The company should come up with new products with different varieties and attributes to attract the customers. To advertise about all the products in the market. The organization can build good infrastructure better than these like maintaining good garden etc. If the company wants to restart the production of “Double Toned Milk”, firstly it has to provide sufficient knowledge and awareness about the attributes of products as compared to others. Milk: India's Number One Farm Commodity Milk is India's number one farm commodity in terms of its contribution to the national economy. In 1994-95, the value of its output based on producer price was Rs. 500,051 millions, exceeding that from paddy (rice). Notwithstanding its top place and the many benefits it bestows on the lower rungs of the rural society, dairying has not received due attention from planners, economists, social scientists and others. For example, the investment in dairying made under the five-year plans is not commensurate with its output. Consequently, its potential has not been adequately tapped. Milk contains many different nutrients Milk and milk products contain a good balance of protein, fat and carbohydrate and are a very important source of essential nutrients including: ➢ Calcium ➢ Riboflavin ➢ Phosphorous ➢ Vitamins A, D and B12 Kousali Institute of Management Studies, Dharwad. 4 Karnataka Milk Federation, Dharwad ➢ Pantothenic acid. Milk products also contain ‘high quality proteins’ that are well suited to human needs. Milk proteins increase the value of poorer quality cereal and vegetable proteins in the diet by providing the amino acids these proteins lack. As a food, milk serves the following broad purposes: (a) growth, (b) reproduction, (c) supply of energy, (d) maintenance and repair and (e) appetite satisfaction. The requirements of these categories vary with the individual, and in some instances not all the stated functions of the food need to be served, e.g. adults no longer require food for growth whereas infants do. The functions of a food are served specifically through the various nutritionally important components, comprising proteins, carbohydrates, lipids, minerals, vitamins and water. Fat content is closely followed by milk proteins at about 3.4%. Milk proteins in turn are subdivided into casein, comprising approximately 76–80% of the total milk proteins, and the whey proteins, comprising roughly 20–24%. Modified milks explained: There are many types of milks on the market, including: • • • Full cream – full cream milk contains around four per cent fat and is a source of vitamins A and D. For children up to the age of two years, full cream milk is recommended. Reduced fat – expect around half as much fat in reduced fat milk as full cream. Children over the age of two years can drink reduced fat milk. Skim milk – contains less than one per cent fat. Children older than five years can safely consume skim milk. Both reduced fat and skim milk have vitamin A and D added to replace the naturally occurring vitamins that are reduced when the fat is removed. Calcium enriched – generally milks that are enriched with extra calcium are also fat reduced. A 250ml glass of milk contains 408–500mg of calcium. Flavored – these milks can either be full cream or reduced fat. However, most varieties contain a lot of sugar. UHT (ultra-high temperature-treated) milk – is treated with very high heat to allow milk to be stored for long periods. • • • Pasteurization milk: Kousali Institute of Management Studies, Dharwad. 5 Karnataka Milk Federation, Dharwad Pasteurization is a process in which the milk is heated till 75 degree Celsius and the milk is exposed to this temperature for about 16 seconds and then the milk is suddenly cooled to 4 degree Celsius. This process is carried out to destroy all the pathogenic bacteria that are present in raw milk. Pasteurization is a very costly process and it requires the installation of very costly machines. Unpasteurized milk: Most milk on the market is pasteurized (heat treated then cooled). Milk that hasn’t been through this process should be avoided. While pasteurization reduces the amount of some vitamins, such as vitamin C, it also kills bacteria. Unpasteurized milk is a health hazard because of the dangers of bacterial diseases. NUTRITIVE VALUE OF MILK (Values are for 100g) Buffalo Moisture (g) Protein (g) Minerals (g) Carbohydrates (g) Energy (kilocalories) Calcium (mg) Phosphorous (mg) Iron (mg) Carotene (ug) Thiamine (mg) Riboflavin (mg) 81.0 4.3 0.8 5.0 117.0 210.00 130.0 0.2 160.0 0.04 0.1 Cow 87.5 3.2 0.8 4.4 67.0 120.0 90.0 0.2 174.0 0.05 0.19 6 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad Niacin (mg) Vitamin B12 (ug) Folic acid (ug) Total Free Vitamin C (mg) Sodium (mg) Potassium (mg) Fat (g) Total fatty acids (g) Linoleic acid (g) Linolenic acid (g) Total phospholipids (g) Cholesterol (g) 3.3 5.6 1.0 19.0 90.0 7.97 7.18 0.08 0.09 0.03 0.014 5.6 8.5 2.0 73.0 140.0 3.78 3.57 0.09 0.06 0.035 0.012 0.1 0.1 0.1 0.1 India: World's Largest Milk Producer India has become the world's No. 1 milk producing country, with output in 1999-200 (marketing year ending March 2000) forecasted at 78 million tones. United States, where the milk production is anticipated to grow only marginally at 71 million tones, occupied the top slot till 1997. In the year 1997, India's milk production was on par with the U.S. at 71 million tones. The world milk production in 1998 at 557 million tones would continue the steady progress in recent years (see Table 1). Furthermore, the annual rate of growth in milk production in India is between 5-6 per cent, against the worlds at 1 per cent. The steep rise in the growth pattern has been attributed to a sustained expansion in domestic demand, although per capita consumption is modest - at 70 kg of milk equivalent. Annual Milk Production has trebled India's annual milk production has more than trebled in the last 30 years, rising from 21 million tons in 1968 to an anticipated 80 million tons in 2001. This rapid growth and Kousali Institute of Management Studies, Dharwad. 7 Karnataka Milk Federation, Dharwad modernization is largely credited to the contribution of dairy cooperatives, under the Operation Flood (OF) Project, assisted by many multi-lateral agencies, including the European Union, the World Bank, FAO and WFP (World Food Program). In the Indian context of poverty and malnutrition, milk has a special role to play for its many nutritional advantages as well as providing supplementary income to some 70 million farmers in over 500,000 remote villages. Table 1. World's Top Milk Producers. Countries India United States Russian Federation Pakistan Brazil Ukraine Poland New Zealand Australia EC World (includes others) 1998 74 71 33 22 22 14 12 12 10 125 557 1997 71 71 34 21 21 15 12 11 9 125 549 1996 68 70 36 20 19 16 11 10 9 125 542 The origin of Co-operative Milk Producers societies: The mighty Ganges at it's origin is but a tiny stream in the Gangotri ranges of the Himalayas. Similar is the story of Amul which inspired 'Operation Flood' and heralded the 'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collects processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Achievements of dairy co-operatives: A commitment to help rural producers help themselves has guided the Dairy Board's work for more than 30 years. This commitment has been rewarded with achievements made by cooperative dairies in milk production, employment generation, and per capita availability of milk, foreign exchange savings and increased farmer incomes. The start of a revolution: Kousali Institute of Management Studies, Dharwad. 8 Karnataka Milk Federation, Dharwad The revolution started as awareness among the farmers that grew and matured into a protest movement and the determination to liberate them. Over four decades ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere else in India. His income was derived almost entirely from seasonal crops. The income from milch buffaloes was undependable. The marketing and distribution system for the milk was controlled by private traders and middlemen. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throwaway prices. In this situation, the one who gained was the private trader. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if marketed their milk themselves. In order to do that they needed to form some sort of an organization. This realization is what led to the establishment of the Kaira District Cooperative Milk Producers' Union Limited (popularly known as Amul) which was formally registered on December 14, 1946. NATIONAL DAIRY DEVELOPMENT BOARD: History: The NDDB was founded to replace exploitation with empowerment, tradition with Modernity, Stagnation with growth, transforming dairy into and instrument for the development of Indian’s rural people. The NDDB was established in 1965; the board is registered under the Societies Registration Act and the public Trust Act, fulfilling the desire of the Prime Minister of India – the late Lal Bhahaddur Shastri to extend the success of the Kaira Co-operative Milk producers union (AMUL ) TO OTHER PARTS OF India. Dr Vergese Kurien was the founder chairman. The success combined the wisdom & energy of farmers with professional management to successful capture liquid milk and milk product markets while supporting farmer’s investment with inputs and services. The Growth NDDB began its operations with the mission of making dairying a vehicle to a better future for millions of gross roots milk producers. The mission archived helped to launce ‘’Operation Flood’’, a programmed extending over 26 years and with the help of World Bank Loan India become the world’s largest milk producing country. As per March 2001 India’s 96000 Dairy Co-operative are integrated thorough a three Tier Cc-operative structure. The Anand pattern which is owned by more than 10 million formers procures an average of 1605 million liters of milk every day. The milk is processed and marketed by 170 milk producers’ cooperative unions which, in turn own 15 state co-operative milk marketing federation. Since its establishment the dairy development board has planned and spearheaded India’s Dairy Kousali Institute of Management Studies, Dharwad. 9 Karnataka Milk Federation, Dharwad programmer by placing dairy development in the hands of milk producers and the professionals they employ to manage their co-operatives. In addition, NDDB also promotes other commodity based co-operative, allied industries and veterinary biologically on an intensive and nationwide basis. Objectives of NDDB: ➢ To sponsor, promote, manage, acquire, construct or control any plant or work, which promote projects of general public utility relation to dairying. ➢ To make information available on request to technical services to increase production of Milk. ➢ To prepare initial feasibility studies of dairying and other dairy related projects and undertake subsequent designing planning and start up those projects. ➢ To undertake research and development programmed related to production and marketing of milk and milk products. ➢ To provide assistance for exchange of information to other international agencies. Services rendered by NDDB: NDDB provide the following services. . Planning dairy and rural development projects. . Organization of farmer co-operative societies. . Setting up of dairy and cattle feed plants. . Manpower planning and training. . Applied research and development. . Implementation of milk production enchantment programmers. KARNATAKA COOPERATIVE MILK PRODUCERS' FEDERATION LIMITED (KMF) The very much impressed by the successes of AMUL dairy. With this spirit in Karnataka in the year 1974 KARNATAKA MILK FEDERATION starts and works all over Kousali Institute of Management Studies, Dharwad. 10 Karnataka Milk Federation, Dharwad Karnataka as per the rules and regulations themes and adopted this as the model and starts its operation on this and its very much success on this field. The first dairy in Karnataka was started in Kudige in Kodagu district in 1955, Further in June 1974; an integrated project was launched in Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to lay foundation for a new direction in dairy development. In 1975, the World Bank aided dairy development was initiated. The present Karnataka Milk Federation (KMF) came into existence in 1984-as a result of merging of Karnataka Dairy Development Co-operation, small co-operatives and Karnataka Milk Production Development and loose vendors. And in the year 1986 the Karnataka milk federation bifurcated to many parts to work many more towards customers and formers needs and wants and it is de-centralized and regional authority is be given to the managing directors and marketing managers and forms and cooperative societies union to give suggestions to this management. KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the third largest dairy co-operative amongst the dairy cooperatives in the country. In South India it stands first in terms of procurement as well as sales. One of the core functions of the Federation is marketing of Milk and Milk Products. The Brand ' ' is the household name for Pure and Fresh milk and milk products. KMF has 13 Milk Unions throughout the State which procure milk from Primary Dairy Cooperative Societies (DCS) and distribute milk to the consumers in various Towns/Cities/Rural markets in Karnataka. The first ever World Bank funded Dairy Development Program in the country started in Karnataka with the organization of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from World Bank, Operation Flood II & III. The dairy co-operatives were established under the ANAND pattern in a three tier structure with the Village Level Dairy Co-operatives forming the base level, the District Level Milk Unions at the middle level to take care of the procurement, processing and marketing of milk and the Karnataka Milk Federation as the Apex Body to co-ordinate the growth of the sector at the State level. Coordination of activities among the Unions and developing market for Milk and Milk products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid milk among the member Milk Unions is monitored by the Federation. While the marketing of all the Milk Products is organized by KMF, Kousali Institute of Management Studies, Dharwad. 11 Karnataka Milk Federation, Dharwad both within and outside the State, all the Milk and Milk products are sold under a common brand name NANDINI. At the end of the March 1998, the network of 8023 Diary Co-operative Societies (DCS) have been established which are spread over 166 taluks of the total 175 taluks in all 27 districts of Karnataka. There are 13 Milk Unions and Dharwad Milk Union (DMU) is one among them. There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants and 2 Product dairies for chilling, processing, conservation and marketing of milk. To supply cattle feed there are 4 cattle feed plants. To impart training, institutes at Bangalore and regional training institutes at Dharwad and Gulbarga are functioning. Three nitrogen plants (2 plants of 25 CPM and 1 plant of 5 CPM) are been set-up to supply nitrogen, which is used for Refrigeration purpose. Three diagnostic centers have been set-up for monitoring diseases: three fodder farms at Rajkunte, Kuttanahalli and Kodagu have been set-up to supply good quality of fodder and seed production farm at Shahpur has been set-up. The federation giving details of the latest technology in dairy industry etc is published ‘’Ksheer Sagar’’ magazine monthly. KMF is a co-operative apex body in the state of Karnataka for representing dairy organizations and also implementing dairy development activities to achieve the following objectives. ➢ Providing assured and remunerative market for all the milk produced by the farmer members. ➢ Providing hygienic milk to urban consumers. ➢ To build village level institutions in co-operative sector to manage the dairy activities. ➢ To ensure provision of milk production inputs, processing facilities and dissemination of know-how. ➢ To facilitate rural development by providing opportunities for selfemployment at village level, preventing migration to urban areas, etc. Kousali Institute of Management Studies, Dharwad. 12 Karnataka Milk Federation, Dharwad THE MILK UNION: Milk union is a channel of District Co-Operative Societies in organized form for milk procurement. The procurement route is linked to chilling center or a dairy. Dharwad Milk Union is one of such Milk Unions. It is the middle tier of the complex co-operative organization network. Unions are formed by federating the societies in locating geographical area. The milk unions are organized to make them economically viable and the jurisdiction extends from one district to 3 Districts. There are 5 Milk Unions who’s Jurisdiction covers a single district, 4 Unions COVER 2 District, each 3 Unions cover 3 districts and one Union’s territory extends to 4 District. All Unions own their own Milk Processing Facilities. UNITS OF KARNATAKA MILK FEDERATION: KMF has the following Units functioning directly under its control: 1. 2. 3. 4. Mother Dairy, Yelahanka, Bangaloru. Nandini Milk products ,KMF complex, Bangaloru. Cattle feed plants at Rajanukunte/ Gubbi/ Dharwad/ Hasana. Nandini Sperm Station (Formerly know as Bull Breeding Farm and Frozen semen Bank)at Hessaraghatta. 5. Pouch Film Plant at Munnekolalu, Marathhalli. 6. Center Training Institute af KMF Complex, Bangloru. CO-0PRATIVE MILK PRODUCERS SOCITIES UNIONS: 1. Bangaloru Milk Union 2. 3. 4. 5. 6. 7. 8. Belgaum Milk Union Bellary Milk Union Bijapur Milk Union Dakshin kannada Milk Union Dharwad Milk Union Gulbarga Milk Union Hassana Milk Union 13 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad 9. Kolar Milk Union 10.Mandya Milk Union 11.Mysore Milk Union 12.Shimoga Milk Union 13.Tumakur Milk Union FUNCTIONS: These Unions help to organize new Primary Dairy Co-operative Societies. The Union also helps in managing these DCS by assisting in accounts, purchase, process and marketing liquid milk. The Union helps in providing all the input facilities to DCS and channelizes the dairy farmers through DCS. The Union provides the following facilities. ➢ Co-ordination of activities between the unions. ➢ Providing Balanced Cattle Feed. Providing Animal Health Care. Developing the markets for the increasing in milk production. Providing Artificial Insemination facility for breed improvement. To make the brand “ ”as a house hold name. Excellence in quality is to be maintained to lay a solid foundation for wide spared acceptance of “Nandini” products. To increase the market share of “Nandini”. Providing Training for breeding, feeding management. To build primary dairy cooperative societies to manage the dairy activities. To provide assured remunerative market to the milk produced by the producer members. ➢ To supply quality milk and milk products to urban consumers. ➢ To ensure provision of milk production inputs, processing facilities and dissemination of know-how. ➢ To facilitate rural development by providing opportunities for self employment at village level, preventing migration to urban areas, introducing cash economy and opportunity for steady income. ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ OBJECTIVE : Kousali Institute of Management Studies, Dharwad. 14 Karnataka Milk Federation, Dharwad MILK FEDERATION: The main objective of the federation is to help in formation of Milk Unions through the state and thus forming the state level apes organization. The Federation implements all the project activates. After the project activities are accomplished the federation aims at formulating Marketing strategies in marketing the Milk and Milk Product. The Karnataka Milk Federation which was setup in 1984 has the following functions: ➢ The foremost function of KMF was to co-ordinate the activities between the Union and also in making market available so that production increases ➢ The Federation also manages surpluses and deficiencies of liquid of milk among the milk union and help in disposing milk and milk product at reasonable price ➢ The Federation also manages to market the milk and milk products outside the state. ➢ Provides Balanced cattle feed, mineral mixture, frozen semen straws and liquid nitrogen are produced and distributed to Unions Excellence in quality is maintained to lay a solid foundation for widespread acceptance of the milk and milk products. Training and developing senior managerial personnel, acquiring and applying all recent technologies, prescribing quality guidelines and norms. MEMBERS IN DISTRICT CO-OPERATIVE SOCIETY: BUSINESS STRATEGY OF NANDINI: The federation is striving to excel on three critical factors of business to give remunerative price to producers and to give value for money to customers – QUALITY, COST & DELIVERY QUALITY - Fresh and pure milk “Quality Excellence from cow to consumer”. COST PRICE - Least selling price for market milk in the country Minimum price spread between the purchase price and selling. - Remunerative price to the producers. DELIVERY - Prompt & assured delivery at any time and any place. There are days in the cities of Karnataka, when there is no water or power supply in the homes of consumers, but there are no days without supply of NANDINI milk. VETERINARY SERVICES: ➢ Genetic up-gradation of livestock ➢ Control of Diseases, Mastitis control, regular vaccination, etc. Kousali Institute of Management Studies, Dharwad. 15 Karnataka Milk Federation, Dharwad ➢ Veterinary health cover to all animals – Regular and Emergency Services ➢ Artificial Insemination – Initiated Cluster AI facilities During 2005-06, no. of AI done 13.3 lakhs when compared to 11.4 lakhs AI done in 2003-04-Increase of 16.5% ➢ Embryo transfer technology to upgrade cattle wealth. FEEDS AND FODDER: ➢ Fodder crop seeds supplied to farmers. ➢ Urea treatment of straws & Urea Molasses Blocks. ➢ Four cattle feed plants – all ISO certified and operating with more than 100% capacity utilization. ➢ The Federation has sold 1,54,249 MTs of cattle feed during 2004-05. CLEAN MILK PRODUCTION: ➢ Training producers on hygienic management, milking methods and handling of milk. ➢ Milk Producers provided with SS pails, Saff kit, etc. ➢ Electronic Weighing Machines, Automatic Milk Collection Units and Bulk Milk Coolers in DCS. ➢ Community Milking Parlors ➢ SS Cans and Milk Collection Materials. ➢ CMP Promotional Materials and documentary Films. CLEAN MILK PRODUCTION IMPLEMENTED: ➢ Number of Milk Unions involved – 11 ➢ Number of districts covered – 12 ➢ Number of Milking parlors – 94 (5,785 Number of animals milked twice in a day – Total 55,000 liters of milk collected per day) ➢ Number of BMCs established – 112 (capacity of 2.19 LLPD) with 24 BMC Tanker routes in operation. ➢ Quality of milk collected from BMC centers with an MBRT time from 5-6 hrs and SPC count <5,00,000. ➢ Under implementation - with GOI assistance 109 BMCs (2.2 LLPD capacity) will be added by March 2006. Kousali Institute of Management Studies, Dharwad. 16 Karnataka Milk Federation, Dharwad MILK PROCUREMENT AND SALES: *2010 is projected THE PRODUCTS OF KMF: Milk Toned Milk, Full Cream Milk, Good Life, Standardized Milk, Flavored Milk, Smart, Slim, Butter Milk, Homogenized Toned Milk, Ghee, Badam Powder, Butter, Pannier, Curds, Peda, Cheese, Ice Cream, Gulab jamoon mix, Khova, CashewBurfi, Milk Products The growth over the years and activities undertaken by KMF is summarized briefly hereunder: 1976-77 Dairy Cooperatives Membership Milk Procurement Milk Sales Cattle Feed Consumed Daily Payment to Farmers NO’s NO’s Kgs/day Lts/day Kgs/DCS Rs.Lakhs 416 37000 50000 95050 220 0.90 2009-2010( Up to Jul'09) 11542 2018788 3668314 / Peak Proc.40.41 LKPD 2377364 / Curds:2.27LKPD 3046 449 17 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad Turnover Rs.Crores 3135.00 PERSPECTIVE PLAN 2010: The Operation Flood (OF) Programmed initiated by NDDB in 1970 was a planned attempt to revive India's Dairy Industry from a premature stagnation. The OF Programmed not only propelled the growth of dairy development in India, it also helped India become the world's largest milk producer. OF enhanced the incomes and quality of life for millions of India's dairy farmers, most of them poor and many of them women. It has become India's largest Dairy Development Programmed. OF (1970-1996) created a strong foundation to transform India's dairy sector into a vibrant business activity. It paved the way to take up new initiatives and create new conditions to firm up India's world leadership in milk production. The new challenge for the Dairy Industry was to explore ways to emerge stronger using the network created under OF. The response is Perspective 2010, a plan that attempts to take the dairy cooperative movement to its highest potential. Perspective 2010 focuses on four key areas. These include Strengthening Cooperatives Business, Production Enhancement, Assuring Quality and creating a National Information Network. The State Milk Marketing Federations and the Milk Producers' Cooperative Unions, the architects and key beneficiaries have identified the thrust areas. The plan is designed keeping at helm the benefit to farmers at large. NDDB facilitated the planning process and will provide technical support and need-based finance for implementing Increase liquid milk procurement by cooperatives to 33 percent (488 lakh kilograms per day) of the marketable surplus in Operation Flood areas, constituting 80% of the national milk produced (i.e. Quadruple liquid milk procurement by year 2010) Increase liquid milk sales to 365 lakh kilograms per day, more than 60 percent of the market shares in metros, and on average of close to 50 percent in the Class I cities served by cooperatives (i.e. Treble fluid milk marketing by year 2010) After the closure of OF-III project. Government of Karnataka and NDDB (National Dairy Development Board) signed an MOU during February 2000, for Kousali Institute of Management Studies, Dharwad. 18 Karnataka Milk Federation, Dharwad further strengthening the Dairy Development Activities in Karnataka with an outlay of Rs.250 Crores. Consequent to the announcement of new lending terms and conditions by NDDB through an evolution of an action plan - Perspective 2010 to enable the dairy cooperatives to face the challenges of the increased demand for milk and milk products by focusing efforts in the four major thrust areas of Strengthening the Cooperatives. Enhancing Productivity, Managing Quality and building a National Information Network, plans are under implementation. The 4 Milk Unions viz., Dharwad, Tumkur, Bijapur and Gulbarga that were having accumulated losses were included for rehabilitation programmers under the Centrally Sponsored Scheme "Assistance to Cooperatives" which is also under implementation. STRATEGY:  Identify and address quality related problem at every stage from the producer at the village co-operative, to the dairy plant and the process of final delivery to the consumer.  Facilitate improvement of hygiene, sanitation, food safety and operating efficiency in the dairy plants and sensitize dairy personnel to product quality aspects as per international standards FUTURE VISION: To consolidate the gains of Dairying achieved in the state of Karnataka and with a view of to efficiently chill, process and market ever developing and increasing milk procurement with an utmost emphasis on the Quality and in the process conserve the socio-economic interests of rural milk producers, the Govt. of Karnataka through KMF has proposed to undertake several projects with financial and technical support of NDDB for which an MOU was signed between Govt. of Karnataka and NDDB on 10th Nov. 2004. DHARWAD MILK UNION: Dharwad District Co-operative Milk Producers' Societies' Union Ltd Kousali Institute of Management Studies, Dharwad. 19 Karnataka Milk Federation, Dharwad The Union was established in the year 1986 under the Operation Flood II & III. The Union also later took over in 1988 the Milk Products Factory with a drying capacity of 2.10 Lakh Liters per day, earlier established by the Karnataka Milk Products Limited (Government of Karnataka Undertaking). The Dharwad Milk Union is Co-operative society among the 13 establishment, under KMF. The Dharwad Milk Union (DMU) is one of the most modern plants in the country. It is located in the spacious 25 acres of land, located in Lakamanahalli Industrial Area, adjacent to the Nation Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat. The Union covers the districts of Dharwad, Karwar, Haveri & Gadag, and has Chilling Centres at Gadag,Haveri, Sirsi, Ron, Nargund, Hirekerur & Kumta with chilling capacity of 0.80 Lakh Liters Per Day. The Union procures and sells on an average 0.68 Lakh Kgs per Day and 0.59 Lakh Liters Per Day respectively. There are 7 Bulk Milk Coolers in the Union. Apart from selling milk, it sells pure buffalo milk & produces very thick 250 gm Curds in mud pots specially designed for this namely "KUDIKE MOSARU", the famous Dharwad Peda, Butter in bulk as well as in retail packs and in 10 gm chipsets, Ghee, Skimmed Milk Powder and Pannier. A DMU group of experienced officers, appointed by the Karnataka Milk Federation surveyed the whole of Dharwad districts (includes two newly formed district Gadag and Haveri) and Uttar Karnataka. Further they found out there as a need for a Milk Dairy. They traveled the surrounding villages, educated the villagers about Milk and Milk products and the benefits they would get from the Milk Dairy. Seeing the overwhelming response and untapped resources and the huge market the Federation decided to setup the Milk Union in 1984, known as the Further in 1988, the Raipur Dairy and Chilling Center, setup in 1968, also came under the union. In 1989, the training center, which was controlled by KMF, came under Dharwad Milk Union. DMU was Rs.7 Crore Projects of which Government has Rs.2Crore of share capital and authorized capital of DMU is Rs.5crore. Kousali Institute of Management Studies, Dharwad. 20 Karnataka Milk Federation, Dharwad DMU formed 551 milk producer’s co-operative societies in Dharwad, Gadag, Haveri and Uttar Kannada districts. The prediction capacity of DMU is 2 lack liters of milk per day and also has the capacity to produce 12 tons of milk powder, 10 tones of butter, 6 tones of ghee per day.DMU is collecting 70thousand liters of milk per day from its societies and sells 60 thousand liters of milk per day and the remaining milk is used for producing milk products. FUNCTIONS OF DHARWAD MILK UNION: One of the core function is Procurement of milk, processing it and marketing milk and milk products, Dharwad Milk Union markets its products under brand name of “Nandini”. • • • • • The main function of DMU is to procure milk from villagers and pay them the right price. To educate the villagers about milk and its quality To make ’Nandini’ as a part of daily life. To provide good quality of cattle feed, fodder, veterinary properly and in an efficient manner. To see that the DCS’s are carrying out their activities properly and in an efficient manner. OBJECTIVES OF DHARWAD MILK UNION:        Providing hygienic and good quality of milk to the consumers. To build the economic strength of the milk products in villages. To eliminate middlemen’s in the business so that the milk products receive their appropriate share of bread. To educate the villages about the adulteration of milk and its harmful effect on the body. To see that every citizen becomes healthy by consuming good quality of milk. To make villagers self-viable and build self image. DHARWAD MILK UNION 21 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad A Co-operative society registered under the Co-operative Act 1959. NATURE OF Procuring & Marketing of Milk Production & Sale of Milk BUSINESS Products. SHARE CAPITAL 3 Crores approx PLALNT CAPACITY 2 Lakh lites/day Milk Powder 12 MT/Day Butter 6MT/Day Ghee 6MT/Day MILK CHILLING Gadag 20.000LPD CENTERS AND CENTERS 20.000 LPD CAPACITY AND CAPA Haveri Hirekerur 20.000LPD Naragund 8.000 LPD Ron 10.000LPD Sirsi 20.000 LPD KARWAR The milk in Bulk is sent Packing and Distribution at karwar PACKING UNIT which supplies the need of Karwar, Gokarna, Honnavar, Bhatkal, Murdeshwar and Goa. PRENSE VALUE OF Collection of Milk 70.000LPD ACTIVITY Sale of milk 60.000LPD AREA OF Dharwad, Haveri, Gadag Uttar Kannada district OPERATION BOARD OF DIRECTORS STATUS TOTAL WORKERS LOCATION DEPARTMENT BRAND NAME PROCUCTS CO-OPERATIVE SOCIETIVE AT VILLAGE LEVEL Elected Member 8 EX-Officers 5 By Govt. 3 339 Workers Lakamanahalli Industrial Area, Dharwad. 9 NANDINI MILK:Toned Milk, Standard Milk, Shubham Milk. MILK PRODUCTS: Butter, Ghee, Curd, Lassi, Paneer, Milk Powder 460 Societies PROCESS AT DHARWAD MILK UNION: Kousali Institute of Management Studies, Dharwad. 22 Karnataka Milk Federation, Dharwad The milk collected at DCS’s ( District Co-operative Society ) is brought to the center thought carries trucks etc. the quality and quantity of milk bought is checked at the Reception center by a supervisor. A sample of milk is taken and is tested in a laboratory for fat content, Solid Not fat (SNF) acidity etc. As the milk is at room temperature is to be brought down to 40 c to 50 c. so that it may check the growth of bacteria. To ensure this milk is passed through a chilling chamber where the milk is chilled. Its temperature is bought down and then the milk is stored in a tank called as ’Row Milk Tank’. Row Milk or Unpasteurized milk: Most milk on the market is pasteurized (heat treated then cooled). Milk that hasn’t been through this process should be avoided. While pasteurization reduces the amount of some vitamins, such as vitamin C, it also kills bacteria. Unpasteurized milk is a health hazard because of the dangers of bacterial diseases. From this tank milk is pumped to a pasteurizing cell where the milk is heated up to 720 c and 15 seconds, so that all the bacteria and microorganisms may be killed and then the milk is simultaneously cooled to 40 C to 5o C and is store in a ‘Pasteurized Milk Tank’ From here the milk is separated according to the requirement of production of different types of milk and the remaining milk is used for manufacturing milk products. Pasteurization milk: Pasteurization is a process in which the milk is heated till 75 degree Celsius and the milk is exposed to this temperature for about 16 seconds and then the milk is suddenly cooled to 4 degree Celsius. This process is carried out to destroy all the pathogenic bacteria that are present in raw milk. Pasteurization is a very costly process and it requires the installation of very costly machines. WORKFLOW MODEL. (END TO END) Production process has the following work flow model: Kousali Institute of Management Studies, Dharwad. 23 Karnataka Milk Federation, Dharwad PROCUCT PROFILE KMF, Dharwad product the following milk and Milk Products. TONED MILK: Karnataka’s most favorite milk. Nadine Toned Fresh and pure milk containing 3.0% FAT and 8.5% SNF, Available in 500ml and 11tr packs. SHUBHAM: Buffalo’s milk, 100% pure pasteurized processed and packed hygienically, this milk has 5%fat and 9%snf. Available in 5ooml and 1ltr, and also Available in 5trs packs for marriages, and other functions. CURD: Nandini curd made from pure milk, it’s thick delicious Giving you all the goodness of homemade curds. Available in 200gms and 500gms sachet. MILK POWDER: Enjoy the taste of pure milk! Skimmed milk powder made form pure milk, processed and packed hygienically. Available in 100gms, 200mgs, 500gms, 1kg& 25kg Pack. BUTTER: Rich, smooth and delicious. Nandini butter is made out of fresh pasteurized cream, rich taste, smooth texture and the rich purity of cow’s milk makes any preparation a delicious treat. Available in 100gms(salted), 200gms and 500gms cartons both salted and unsalted. PEDA : No matter what you ate celebrating! Made from pure milk, Nandini pada is a delicious treat for the family. It will be store at room temperature approximately 7days. Available in 250gms pack containing 10pieces each. GHEE: A state of purity, Nandini ghee made from pure butter. It is fresh and pure with a delicious flavor, hygienically manufactured and packed in a special pack to retain the goodness of pure ghee. Shelf life of 6 months at ambient temperature. Available in 200ml, 500ml, 1000ml sachets, 51trs tins and 15kegs tins. The milk produced here is differentiated by the content of fat and SNF Kousali Institute of Management Studies, Dharwad. 24 Karnataka Milk Federation, Dharwad TYPE Toned Milk Standard Milk Subham Milk Full Cream Milk FAT 3.1% 4.5% 6% 5.1% SNF 8.5% 9% 9% 9% He below table gives a brief idea of the milk products, their fat SNF, moisture Content: PRODUCT Butter Ghee Panner FAT 83% 99.8% 20% SNF 1% 30% MOISTURE 16% 0.2% 50% ADMINISTRATION DEPARTMENT The Administration Department controls the overall functioning of the organization. The organization consists of the following three levels. • • • Managerial cadre includes Managing Director, Deputy Manager, and Assistance Manager. Supervisory level included technical officers and supervisors. Worker level includes labors helpers. PURCHASE DEPARTMENT: It is a sub-department, which comes under Finance Department. The main work of this department is to purchase various materials required by different department. After ascertaining Kousali Institute of Management Studies, Dharwad. 25 Karnataka Milk Federation, Dharwad the stock position by stores department and indent is sent by different department duly approved by the Managing Director. This department act to purchase materials. It also maintains records of all the suppliers calls for Tenders, quotations etc. Quotations with lowest rate are sanctioned. Purchase up to 50,000, then the approval of Managing Director. QUALITY CONTROL DEPARTMENT: In DMU, at every stage, care is taken to ensure that the customer gets the product, which have a very high quality. Hence there is a separate department called Quality Department. Where the quality testing is done. There is a separate laboratory for this. Quality control is very essential as to maintain the freshness of the milk. All the containers, pipes and other equipments are washed with hot water before starting off with new production. There are many tests conducted here. The packed milk we get will have undergone 3 quality tests. First test is done on raw milk, whicget from chilling center. Next before standardization and the last test before packing. The other tests conducted are: TEST Temperature Clot on Boiling Acidity Test Alcohol Test Lactometer Fat test SNF Test REASON Should be below 5 degrees If mill curdles soon after billing milk is rejected To test the extent of acidity To check the heat stability of milk To check the density of milk Percentage of fat determined Percentage of SNF determined for pricing SNF=CLR+FAT/4 STORE DEPARTMENT The Stores Department in DMU follows the Cordex system (Coded Control System). A card is maintained for each item and a number is allotted. The card attached to each article consists of amount balance, date of issue, purchase etc. This is later recorded in separated ledge book. The inventories are of different kind ranging from mechanical, spares, packing items to animal drugs, and stationary and veterinary drugs. There are at least 4000 different inventories. This department has the following services: ➢ ➢ It tries to maintain maximum and minimum level of inventory so as to avoid blockage of capital and storage. Ordinary and local available commodities are maintained at minimum possible level. 26 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad ➢ Items of urgent and not easily available are stored sufficiently for further demand. FINISHED GOODS STORES: This Department acts as an interface between production and Marketing Department. It is concerned with maintenance of finishes goods connected records. It received all the finished goods and issued the stock to marketing department as per indents. It ensures that the goods are maintained properly with respect to quality Accounts are maintained and daily and daily and monthly report is submitted to the production. Marketing and Finance Departments. As the products as perishable First-In-firstOut method of inventory is followed. FINANCE DEPARTMENT: This Department is responsible for keeping all the inward and outward flow of money of union. It prepares budget every year and financial rules for receipts all payments are framed. The functions of these departments are: ➢ To prepare monthly accounts (Receipts and payment P & I Account and Balance Sheet). ➢ To prepare quarterly financial statement. ➢ To prepare integrated business plan. ➢ To prepare year ending financial statements. ➢ To get accounts audited from statutory books of accounts. DMU Follows to types of auditing: 1. 2. CANTEEN: There is a Canteen in the premise itself. The employees are provided lunch, Tea etc., at reasonable rates. The Canteen is handled by the Canteen-In charge. TIME KEEPER: This Department records the working hours of the employees. The time machine shows the entry time and exit time of each employee. The workers divided into different shifts control the working of the Department. Each employee is given a Punch Card, SECURITY DEPARTMENT: Dharwad Milk occupies 25 acres of land the whole premise is been guarded by the security personnel. The security people work in three shifts. All the vehicles are checked before Pre-Audit System – done by Finance and Account Department every year. Statutory System –Done by Private charted accountants every year. Kousali Institute of Management Studies, Dharwad. 27 Karnataka Milk Federation, Dharwad entering the premise. The departments is also maintains separate registers like store-in Register, Attendance register etc. SKILLS: The skills here refers too the various skills the workers have here the workers are further divided into three categories. This first category contains the people who are in the topmanagement level the second category consists of the supervisor’s office assistants etc. The third category consists of the supervisor’s office assistants etc. The third category consists of the workers at the operational. The first category consist of the people who are in the decision making process in KMF these people are highly qualified few Deputy Managers are to industries like IRMA, Anand dairy for Training. The second category is related to office work and fieldwork. These people are also trained in computer Applications, secretarial skills, accounting skills etc. The third level people consist of the workers who are actually into the operation these people are also trained into fields like checking the quality of milk processing packing etc. TRAINING SYSTEM The Union emphasizes on training the employees. Most of the training given to the employees here are On-the-Job training and few Off-the-Job Training. ➢ ➢ ➢ ➢ ➢ ➢ ➢ STYLES: A) DMU has follows Top to Bottom or Top down style system. B) The Styles of the organization is said to follow the participative type that is the management cadre follow the participative type of administration. The fact is that for a manufacturing firm like the KMF, Dharwad this type of administration is necessary. The Indicators of the Style are: • • • • Follows Orders, rules and procedure Is always Reliable, Dependable Watches Details\Prefers to write out Communications Is Rational, Logical, Self-Controlled, Fair and Firm. 28 Procurement and Technical Input Training (NDDB) PG Diploma in Rural Management Basic Computer Applications. Data Base Administrator Finance Training for non-Finance Officer Co-Operative management Training Programs Clean Milk Production Training Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad Decision making parameter for day to day operations. The marketing department provides information to production department regarding daily requirements of the sale of the milk and milk products based on the marketing demand, later the production department will take the decision about production activities. STRATEGIES The Dharwad Milk Union has the following set of strategy, which will be formulated event year. The present year has the following strategies. The strategies are formulated with the help of KMF and NDDB an the union members. Below are the strategies set for this year. SRTAGETIES OF THE MARKETING DEPARTMENT: ➢ ➢ ➢ ➢ ➢ ➢ ➢ Visit to all roots of individual points by going in a root distribution vehicle for contact with all agents. Aims to conduct 5 Consumer Awareness Program and various Seminars. Aims at conducting agents’ meetings. Aims at setting 10 Exclusive NANDINI Milk Parlors. Aiming to set up new sales promotional and advertisement activities. Women association programs. Joining with other programs. Strategy Implementation system: Marketing strategy like sales promotional and advertisement activities of DMU are as follows.  Press advertisements  Hoardings  Wall paintings  Rental for KSRTC Buses  Leaf lets  Banners  Vehicles paintings and own hoarding paintings  Pole ads and Flute boards  Rate display boards  Milk carry bags  Calendar and greetings  Exhibition, drawing and consumer mela. Kousali Institute of Management Studies, Dharwad. 29 Karnataka Milk Federation, Dharwad INVENTORY CONTROL SYSTEM: DMU has follows inventory control system like, FIFO System (First In First Out System). It means milk which is procured first which is sent first to production process immediately. Staff: The staff deals with the various personnel Policies followed by the Organization. Below are given the personnel policies followed by the Organization. Personnel policies: There are around 339 employees working in Dharwad Milk Union. There are various policies followed by the Union. The Human Resource Department is the in Dharwad Milk Union Works as a sub Department of Administration Department. Recruitment & selection: Due to registration, termination, retirement and transfers, in the concerned department head will give the manpower requirement along with the job description according the HR department arranges for recruitment. The manpower sourcing is done through advertisement, manpower consultant, employment exchanges and personnel reference and available data bank. Promotion and transfer: Promotion is solely on the basis of sensitivity and experience. Transfers are always accompanied by promotions. Induction: After an employee is employed in DMU, he\she has to be made familiar to the union and also known the objective, value, functions and the operations. This helps the employee to interact with senior staff members from various departments. SALARIES AND EMPLOYEE BENEFITS: Gross salary: A regular staff member in the Union will have a gross salary consisting of Basic salary, Dearness Allowance, CCA, House Rent Allowance, and Conveyance Allowance. There are special benefits given to few employees, like: Shift allowance: Kousali Institute of Management Studies, Dharwad. 30 Karnataka Milk Federation, Dharwad There are separate allowances given to employees working in different shift like: • • • First shift Allowance Second shift Allowance Third shift Allowance Heat allowance: Separate allowance is given to those workers working near boilers and other equipments. Cold allowance: Separate allowance is given to workers working in Defreeze or cold storage. Further there is Uniform code for every employee. The Union provides 2 pair of uniforms to the employees every year House interest: The employee working in the union can take a loan from other external sources and the Union will pay half the interest on the capital per month. Other benefits: Canteen subsidy, Festival Advance, medical Allowance, surrender Leave. SHARED VALUES: These shared values include the mission and vision of the organization. It also includes objective values. Environment Policies etc. KMF, Dharwad has the mission to provide a lucrative market for farmers to sell their milk and to provide best milk to urban customers. Its Vision is to produce more milk and milk Products in the forth-Coming years. KMF, Dharwad also follows environment Policies. The plant doesn’t pollute the environment. The organization has its own Effluent Treatment Plant in its own Premises. The Effluents are properly dumped so that on environment hazards occurs. STRUCTURE: a. Organization structure Kousali Institute of Management Studies, Dharwad. 31 Karnataka Milk Federation, Dharwad b. Sub-structure of various departments and their functions: Procurement and input department (structure) The Union carries on procurement by setting up-operative societies at village level. Later milk is collected in the Chilling Center. Milk collected from the milk center, is first tested there are milk-testing equipments for this purpose. Then a survey on availability of transportation facilities and productive capacity of villages are conducted. If the marketable surplus is more than 150liters per day, a society is formed; further 10promeoters are selected from the village and are given the responsibility of collecting the capital for the society by selling shares. Procurement is done twice a day and payment is made on the basis of percentage of the content and SNF in the milk. After this, Milk is sent to Union else chilling center, whichever is near. At the chilling center, milk is chilled up to 4degree Celsius. Later this chilled milk is sent to Union in Insulated Tankers for further processing. The main function of this department is to procure milk different areas throughout the year. The main function of P & I Department is to organize, supervise and operate village dairy co-operative societies and to procure more milk from village societies. Other services provided are: • Veterinary services to keep up the good heath of cattle through -Regular health Camps Emergency service round the clock First aid, Vaccination, Infertility Camp, Fodder Artificial Insemination facility for improvement of cattle breeds. Facilitating Training Programs regarding management of cattle Supply of Fodder to cattle. • • • VISION OF THE DHARWAD MILK UNION: ➢ ➢ Cleanliness in the Production House. Total quality maintenance and making of Brand awareness. 32 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad ➢ ➢ ➢ ➢ ➢ In the union Discipline is maintained. Co-operation with other milk union and the sub unions. Transparency in the processing. Co-operative free of politics. Respective each other opinion ideas and feelings. MISSION STATEMENT OF DHARWAD MILK UNION: Dharwad milk Union is commuted to provide maximum possible price for the milk supplied by its members and provided necessary inputs for the milk production while ensuring economic viability of the union and also committed to provide quality milk products to consumer and image as one of the most milk union of the co-operative dairy industry in the country. At DMU we Endeavour to satisfy the taste and nutritional requirements of the customers. Through excellence in marketing by DMU committed team, DMU are committed to offering quality products that provide best value for money. QUALITY POLICY OF DHARWAD MILK UNION: To ensure pure, hygienic milk and milk products through continuous improvement of quality standards. DMU has got ”ENERGY SAVING” award for the production activities IN Achievement Category. FUTURE GROWTH AND PROSPECTUS OF DHARWAD MILK UNION: Procuring and selling 1 lack letters per day. Preparing for ISO-9001 certification. Marketing quality improvement. Kousali Institute of Management Studies, Dharwad. 33 Karnataka Milk Federation, Dharwad Developing HACCP- hazards analysis and Critical Control Points. Getting export grade milk powder. OWNERSHIP PATTERN: DMU builds and runs under the co-operative institutions such as   District Co-operative Society.(DCS) National Dairy Development Board.(NDDB) INFRASTRUCTURAL FACILITIES: Infrastructural facilities of DMU are as follows. ➢ ➢ ➢ ➢ ➢ Security facilities. Canteen facilities. Shifts facilities-3shifts per day. Heat allowance. Cold allowance. DEPARTMENTS OF DHARWAD MILK UNION: 1. 2. 3. 4. 5. 6. 7. 8. 9. Purchasing Department. Quality Control Department. Production Department. Procurement and Input Department. Store Department. Finished good and materials storage department. Sales and Marketing Department. Finance and Accounts Department. Administration Department. INPUT REQUIRED PER DAY: Kousali Institute of Management Studies, Dharwad. 34 Karnataka Milk Federation, Dharwad      Milk procurement up to 70,000 liters. 5 to 6 lakh liters of water. 10,000 units of electricity. 4 to 5 tons of coal. Generator in case of electricity failure and manpower. COMPETITORS OF INFORMATION: DMU has various competitors in the milk products market such as ✔ Sri Krishna ✔ Arokya ✔ Spurthi ✔ Datta ✔ Bharath Dairy ✔ Ram Rahim ✔ Gopal ✔ And the local milk suppliers STRENGTHS OF KMF: ➢ ➢ ➢ ➢ Nandini enjoys good image. Wide distribution network leads to regular and timely supply. Milk processed is local milk, which reduces the transportation cost. It enjoys highest market shares in the packed milk segment. WEAKNESSES OF KMF: ➢ ➢ ➢ ➢ Poor retail serving and consumer grievance handling. Recurring quality problem. Lowest paying brand i.e. commission given by the company is less compared to other brands. Inadequate sales promotional activity. Due to bad smell that persists causes low sales. OPPORTUNITIES: ➢ ➢ ➢ There is scope for developing in new area. Availability of buffalo milk-improves market milk quality. Predominant of loose milk segment-divide appropriate strategies. 35 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad THREATS: ➢ ➢ ➢ No entry barriers for private players. Low level of consumer awareness. Persuade benefits of competing brand. THE DISTRIBUTION CHANNELS OF THE DHARWAD CO-OP MILK PRODUCER’S SOCIETIES’ UNION LTD. The channel is well planned to suit the milk and milk products which perishes very quickly. ROLE OF TRANSPORTERS IN THE MARKETING CHANNEL: Transporters play a very big role in all the channels. The milk union has made around 64 routes to cover all the 4 districts. Transportation is outsourced to private parties. Those with goods vehicle can participate in the tender process. Tenders are called once in every 2 years. The person whoever wants to operate in a particular route has to bid for that route. The person who quotes the lowest rate per kilometer for that routs is allowed to take the transportation work for that route. The goods vehicles are loaded in the dispatch dock in the milk union and sent to the locations. The transporters deliver the goods while going on their assigned routes to the agents, parlor owners, ATM centers, Day counters according to the instructions given by the marketing department and while returning back they collect the money and milk trays and return to the union. The milk union does not give goods on credit. Payment has to be made on the day on which the goods are delivered to them. The transporters come back to the union and deposit their collection in the cash counter of the milk union. Dispatch dock Dharwad Hubli Gadag Karwar Haveri 36 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad WE CAN BROADLY CLASSIFY THE MARKETING SYSTEM INTO 4 CHANNELS: 1. Agency/ Agents. The channel is as shown above. The agents are located in almost all the areas. They distribute the milk and other products especially in the morning. There are 646 agents who cover all the 4 districts. The Agents will have to give the indents to the marketing department as per the requirement as per the time notified by the marketing department. The dispatch section will load the transport vehicles with all the products as per the indent. Now once when the goods are loaded it becomes the responsibility of the transporters to transfer the products to the concerned agents. The Agents can also operate through these above shown channels. They can put their products in the retail shops such as provisional stores, bakeries, etc and share the retail margin with them. They can also make home delivery by hiring delivery boys. 2. Day counters. The channel is as shown above. They cover all the parts of the 4 districts. There are around 254 day counters in 4 districts. These are the shop owners such as of provisional stores, bakeries, etc who sell milk along with the other products they sell in their shops. The shop keepers will have to give the indents to the marketing department as per the requirement as per the time notified by the marketing department. The dispatch section will load the transport vehicles with all the products as per the indent. Now once when the goods are Kousali Institute of Management Studies, Dharwad. 37 Karnataka Milk Federation, Dharwad loaded it becomes the responsibility of the transporters to transfer the products to the concerned agents. 3. MILK PARLORS The channel is as shown above. They are located in all the major educational institutes, Government hospitals, Courts, Bus stops etc in all the 4 districts. The Milk union takes the required permission from these institutes to set up the milk parlors and set up the shops. These are given to the people who are interested in managing them. The interested people will have to participate in the bidding process called by the milk union. The bidder who quotes high rent will be given permission to manage these parlors. He will have to pay the rent monthly as per the rate quoted by him. The condition by the Milk union is that the Parlor will have to sell only the products of KMF. The decoration, maintenance etc. regarding parlors is taken care by the marketing department of milk union. No other products are allowed to sell. What ever the retail margin he gets is his profit. The Parlor owners will have to give the indents to the marketing department as per the requirement as per the time notified by the marketing department. The dispatch section will load the transport vehicles with all the products as per the indent. Now once when the goods are loaded it becomes the responsibility of the transporters to transfer the products to the concerned Parlor owners. 4. ALL TIME MILK CENTERS. The channel is as shown above. They are located in all the major locations of the city. They are called as ALL TIME MILK CENTERS. The person whoever is interested to set up the ATM center has to search for such busy locations and contact the milk union with the proposal to start such centers. The milk unions marketing people will survey the area and give the permission to start such centers. A major part of the rent is paid by the milk union. The union also pays a major part of electricity charges. The condition for the ATM owners is that they should sell only KMFs products. No other products are allowed to sell. What ever the retail margin he gets is his profit. The ATM owners will have to give the indents to the marketing department as per the requirement as per the time notified by the marketing department. The dispatch section will load the transport vehicles with all the products as per the indent. Now once when the goods are loaded it becomes the responsibility of the transporters to transfer the products to the concerned Parlor owners. Kousali Institute of Management Studies, Dharwad. 38 Karnataka Milk Federation, Dharwad Year 198788 198889 198990 199091 199192 199293 199394 199495 199596 199697 199798 199899 199900 200001 200102 2002- Apr 2125 6 2938 2 2840 7 2871 9 4550 9 4508 9 7315 3 6076 4 6709 6 3999 5 4596 7 5782 0 5448 0 4586 8 5208 9 5445 May 1834 9 2924 1 2403 1 2655 2 4188 1 4583 4 6578 2 5675 6 3875 3 3611 2 3983 6 5480 9 5365 8 4754 3 5141 9 5009 Jun 2120 2 2824 6 2350 3 3002 7 4660 8 5046 1 7160 2 5431 3 3609 4 3870 4 3882 4 5393 7 5665 9 4804 7 5037 2 5530 Jul 1980 7 2681 3 2313 2 3185 2 5111 8 5436 5 7202 8 4831 2 3341 7 4447 4 4334 5 5553 6 5341 2 4978 3 5042 3 6221 Milk Procurement (TKGPD) Aug Sep Oct Nov 2406 3161 41647 51219 8 6 2645 3308 42977 43513 7 3 2574 3087 39473 45302 0 6 3402 4129 49014 55932 3 6 4846 5271 60694 63207 2 0 5717 6649 77531 83025 3 2 6863 6967 77110 87168 6 0 4976 5138 62303 73842 3 5 3959 4881 58330 68447 3 4 4751 5535 65324 77061 8 7 4525 5414 64305 77424 4 4 5832 6553 72830 85620 4 1 5301 5802 64414 75783 9 5 5278 6020 69520 82200 1 0 5248 6104 77987 86527 9 3 5838 6492 65865 73829 Dec 50190 37077 42114 59140 61366 90415 83891 71014 65406 72314 84221 81773 70608 74931 77947 67078 Jan 6089 3 7695 0 6259 7 6570 7 6476 0 9222 6 8301 8 6306 6 5648 3 6410 6 8485 9 7288 3 6167 0 6577 7 7309 7 6677 Feb 5282 9 6512 9 5645 3 5540 0 5691 1 8469 7 7194 7 5443 0 4876 9 5713 4 7409 4 6410 3 5577 9 5862 7 6690 7 5984 Mar 4653 8 5675 5 5191 4 4951 4 5220 1 7897 7 6470 0 4827 1 4301 5 5165 6 6625 3 6631 1 5142 8 5592 5 6079 7 5534 39 Avg 36635 41302 37792 43931 53786 68857 74059 57852 50351 54146 59877 65790 59078 59229 63406 61162 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad 03 200304 200405 200506 200607 200708 200809 200910 6 5022 4 6117 5 6445 7 6823 9 5938 0 6749 6 7251 8 4 4823 1 6016 0 6429 7 6293 2 5827 2 7319 5 7274 6 0 4321 9 6522 0 6909 6 6766 5 5735 2 7251 6 9 4278 0 6825 1 7410 9 7406 8 6103 8 6540 5 0 4351 7 6469 0 7897 2 7241 6 6453 1 5962 8 0 4992 0 6881 9 9088 4 7576 3 6936 2 6960 9 5 7142 5 6869 7 9114 3 7614 9 7200 6 8147 0 0 6903 9 6751 1 8016 0 7199 1 6801 4 7313 5 6 6677 5 6515 8 7552 8 6704 7 6175 6 7162 3 55421 74759 10365 1 83033 78763 75705 69333 69291 11251 9 88497 84826 79246 68689 68477 10347 9 81517 81216 79336 56548 66851 84025 74110 68043 72364 72632 DHARWAD MILK UNION LTD., Year 198788 198889 198990 199091 199192 199293 199394 199495 199596 199697 199798 199899 199900 200001 200102 200203 Apr 3058 7 4850 7 5949 8 6916 8 6594 4 5428 8 5634 3 5347 8 5492 1 6077 5 4638 2 4942 4 5300 8 5836 0 5518 7 5518 7 May 3167 2 5099 0 6314 4 6781 2 5914 8 5243 8 5923 9 5573 6 5572 5 6216 6 4817 8 4493 6 5251 2 5890 9 5654 8 5451 4 Jun 3234 6 4955 0 6032 4 6529 9 5918 7 5632 6 5762 9 5431 1 5222 9 5967 4 4802 5 4997 3 5233 1 5894 3 5439 1 5821 9 Jul 3715 1 4869 2 6285 6 6458 7 6069 5 5760 6 5607 1 5326 2 5084 5 5902 8 4874 6 4951 6 5245 5 5878 4 5414 6 5205 5 Aug 3984 9 5484 0 6335 2 6473 9 5555 0 5631 3 5392 8 5284 9 5382 6 5925 9 5032 7 5007 7 5322 7 6079 3 5421 3 5199 1 Milk Sales Sep Oct 4184 4019 0 4 5533 5111 3 4 6309 6132 3 1 6476 6264 8 4 5987 6140 9 8 5533 5147 3 4 5361 5109 0 9 5351 5204 3 3 5496 5300 1 1 5823 4988 8 7 5326 5293 4 5 5028 4826 9 4 5297 5250 2 8 6001 5846 4 7 5268 5089 6 4 5280 5253 6 1 Nov 4108 2 5231 5 6184 1 6319 7 6393 7 4995 1 5204 8 5369 8 5416 1 4877 7 5190 1 4842 0 5196 7 5802 3 5065 8 5303 0 Dec 4081 9 5832 7 6203 5 6385 1 6345 1 4949 1 5246 9 5334 6 5360 5 4744 4 4828 1 4950 9 5292 7 5881 0 5259 4 5487 9 Jan 4252 6 5369 2 6294 4 6335 7 6143 0 4987 9 5189 8 5250 8 5404 9 4608 4 5082 6 5142 3 5444 9 5905 4 5153 8 5371 2 Feb 4514 6 5625 8 6867 5 6257 8 6240 4 5177 4 5345 7 5293 6 5727 9 4697 7 4877 4 4874 2 5459 2 5593 6 5390 4 5615 5 Mar 4689 5 5685 4 6338 2 6473 1 6009 0 5438 2 5450 2 5560 3 5671 3 5094 7 4943 6 5207 2 5706 4 5635 3 5419 0 5633 3 40 Avg 39176 53039 62705 64728 61094 53271 54358 53607 54276 54105 49756 49387 53334 58555 53518 53762 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad 200304 200405 200506 200607 200708 200809 200910 5816 2 5381 7 5525 6 5212 7 5871 8 6178 1 7135 8 5943 5 5282 6 5631 2 5338 6 5936 3 6008 4 7404 6 5807 5 5073 1 5435 7 5162 1 5764 2 5818 6 5634 7 4966 2 5331 4 5139 0 5735 5 5979 6 5645 9 4966 3 5260 2 5241 4 5802 4 6197 8 5457 1 5003 0 5267 0 5252 0 5777 7 6320 9 5429 1 4866 0 5188 4 5298 1 5859 6 6418 5 5583 3 5134 3 5289 5 5197 6 5996 6 6445 9 5425 8 5111 3 5168 9 5218 2 5888 9 6638 2 5248 2 5164 6 5160 2 5354 7 5783 5 6504 9 5159 7 5199 3 5422 1 5450 1 5931 1 6902 9 5288 4 5320 9 5531 5 5534 2 6053 6 6990 0 55366 51224 53510 52832 58668 63670 72702 Dharwad Co-operative Milk Producers Union Ltd., Dharwad. Product sales statement during 2008-09 April08 Product Name Curds 200 Gm (Pkts) Curds 500 Gm (Pkts) Bulk Curds in Kgs Pot Curds (250 gm Pots) Tetra SFM 200 Ml(Pkts) Tetra B Milk 200 Ml(Pkts) 200 Ml Sweet Lassi(Pkts) 200 Ml Massala Lassi(Pkts) 200 Ml FM Sachets(Pkts) 200 Ml SFM Bottles Cream in Kgs Kunda Khova in Kgs Badam Powder 200 Gm(in Kgs) Badam Powder 500 Gm(in Kgs) Badam Powder 10 Gm(in Kgs) 200 Gm Jamoon Mix(in Kgs) Mysore Pak 250 Gm(in Kgs) Bulk Paneer Paneer 200 Gm (in Kgs) 250 Gms Dwd Peda(in Kgs) Total 29543 0 84808 27885 24897 7424 0 45043 83287 1000 11746 0 45 634 143 June08 Total 15532 7 34412 85175 16292 1320 0 8987 10878 0 5200 0 117 128 103.6 August08 Total 165151 43912 88634 9195 779 0 6826 8195 1200 4852 0 398.5 209 119.2 Sept08 Total 19145 1 45958 91710 8871 972 0 10140 19448 0 4500 0 408.75 157.5 121.6 March09 Total 311756 74955 89905 26400 3651 0 51623 106543 0 11898 0 203.25 314 149.2 5.5 13 55 152.5 1199.5 254 13780.3 Cum. Total Sales 2008-09 Total 2808926 675065 869214 198721 46000 0 291531 470273 2525 82928 0.00 3247.25 3299.75 1584.20 9.50 187.00 645.40 1842.50 11764.80 2409.20 167841.25 May-08 Total 305427 73585 18638 26786 5168 0 40683 70401 200 12499 0 30 117 97 July-08 Total 163341 41370 114351 9243 2087 0 7710 7901 0 3548 0 445.25 182.50 112.20 Oct-08 Total 264127 56717 21104 13222 1350 0 22518 27423 0 9985 0 453.25 254 119.8 Nov-08 Total 23753 7 54560 82061 12734 6344 0 24388 22231 125 0 0 260 300.75 134.4 Dec-08 Total 241731 59159 88310 15067 5157 0 17522 23401 0 0 0 334.75 471.25 170.2 Feb-09 Total 245860 57144 88607 19843 5883 0 35130 65086 0 10900 0 240 373.5 144.4 4 15 51.8 116.75 980.3 150 14448 11 33.8 127.75 870.25 250.6 14840.8 13 41 111.75 674 237.8 16469 14.00 36.40 169.75 623.00 251.00 15800.25 15 47 120 693.5 179.4 14047 10 57.6 114.75 615.5 240.4 13132 19 30.4 120 1010.25 60 15267.3 14 75.8 205.25 1255 265.8 11912 27 77.4 253 1628.5 208.4 13093.3 16 75.6 220.25 1049 226.4 11430.3 Kousali Institute of Management Studies, Dharwad. 41 Karnataka Milk Federation, Dharwad Butter 10 gm packkgs Butter 100 gm pack-kgs Butter 500 gm U/S pack-kgs Butter 500 gm S pack-kgs Ghee 1000 MlLTRS Ghee 500 Ml-LTRS Ghee 200 Ml-LTRS Ghee 15 Kg TinKgs Ghee in Bulk SMP 1 Kg Pack SMP 25 Kg SMP Sweep 305 306.6 4447 0 5972 2542.5 1992.8 495 0 1301 0 275 748.2 9888.5 2792 1561 2328 1258.6 525 0 215 400 343 2562 9027.5 4210 965 3232 2997.4 600 0 0 275 249.00 267.20 6371.00 2825.00 942.00 2059.00 1877.60 945.00 0.00 1946.00 175.00 182 180.1 5448.5 1748.5 1421 2915.5 1576.2 420 0 473 0 861 571.9 4948 6402.5 1044 2324.5 1415.6 0 0 584 25 352 29.9 4757 1083.5 1630 2768.5 1847.8 30 0 1069 200 61 402.1 3337 1436 167 686.5 474.2 345 0 680 25 283 485.2 4513.0 6581.5 0 1347.5 313.6 195 0 605 0 358 1200.8 10851 979.5 909 2381.5 977.8 240 0 575 0 0 205 188.3 5676.5 1448.5 2 1659.5 1105.2 75 0 628 0 0 3505.00 8195.70 73446.50 34584.50 15236.00 26654.00 16564.20 3945.00 0.00 8587.00 1100.00 1850.00 Address Dharwad District Co-operative Milk Producers' Societies' Union Ltd Product Dairy, Lakkammanahalli Industrial Area DHARWAD - 580 004. Karnataka 0836-2467603 / 2468380 / 2467643 0836-2468268 [email protected] Phone Fax E-mail Kousali Institute of Management Studies, Dharwad. 42 Karnataka Milk Federation, Dharwad METHODOLOGY: Collection of data and interpretation: Principles of marketing or marketing research cannot be accurately applied to daily usable consumer product like milk. It has wide fluctuations to demand movement, and consumer’s choice because customer prefers milk and not a particular brand in time of need. This means that the consumer should have total brand awareness to stick up to a popular brand. This has an impact on dealers and retailers also. The brand and its products are first segmented their market to satisfy the demand of consumers who always need a change in their consumption of milk. The basic benefits are gender and the income groups but market is not segmented as per the segmentation done by the company because consumers of milk don’t go for a particular brand for particular reason. Location Sample size Instrument Used : Hubli-Dharwad cities. : 100 respondents. : Self administered questionnaire Sampling Techniques Used :Convenient Sampling Statistical Tool : Tables, Pie Charts and bar charts are used in Analyzing the data. Collection of primary data: Primary data is that type of data which includes the first hand information which is being collected from the respondents through observation or through direct communication with respondents in one form or another or through personal interviews. In this research personal interviews and survey were conducted to get primary data. The survey will be conducted in the geographical region of Hubli-Dharwad cities. Respondent’s area was divided on the basis of geographically. Kousali Institute of Management Studies, Dharwad. 43 Karnataka Milk Federation, Dharwad The main regions for survey were Hubli and Dharwad cities. I was divided each city into 5 sub regions which are North, South, East, West and central. Collection of secondary data: Secondary data means the data which have already been collected and analyzed by someone else. The secondary data is collected through the various sources like company’s magazine and broachers the past projects done on the branding. The other sources are internet, pamphlets, relevant magazines, journal et Table # 1: Surveyed respondents genders: Sl. No 1 2 Total Source: Primary data Gender Male Female No.of Respondendents 22 78 100 Percentage 22% 78% 100% INTERPRETATION: The table shows that in the survey the respondents are 22% males and 78% respondents are females. Table # 2: Age groups of the respondents: Sl. No 1 2 3 Age Groups 15-25 25-35 35-45 No.of Respondendents 18 26 34 Percentage 18% 26% 34% 44 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad 4 5 Total Source: Primary data 45-55 Above 55 14 8 100 14% 8% 100% INTERPRETATION: Above table shows that 18% of respondents are belonging to the age group of 15-25, 26% of respondents belongs to 25-35 age group, 34% of respondents belongs to 35-45 age group, 14% and 8% of respondents are belonging to the respectively 45-55 and above 55 age groups. Table # 3: Occupation of the respondents: Sl. No 1 2 3 4 5 Occupation Students Business man Working in private org Government job House wife Total No.of Respondendents 6 12 17 8 57 100 Percentage 6% 12% 17% 8% 57% 100% Source: Primary data INTERPRETATION: It has been observed form the above table 6 respondents are belongs to students, 12 are from business man, 17 from private organization workers, 8 respondents are government employees and major part of the respondents are belonging target customers are housewife. Table # 4: Rrespondents monthly income groups: Sl. No 1 2 3 Monthly income group Less than 10,000 10,000-15,000 15,000-20,000 No.of Respondendents 19 26 38 Percentage 19% 26% 38% 45 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad 4 5 20,000-30,000 Above 30,000 Total 13 4 100 13% 4% 100% Source: Primary data INTERPRETATION: Among the respondents surveyed, 19% of them are have income group of the less then 10,000 rupees per month, 26% of them belongs to 10,000-15,000 per month income group,38% and 13% of respondents are belonging to respectively to 15,000-20,000 and 20,000-30,000 per month income group and the last 4% of the respondents are belongs to above 30,000 per month income group. Table # 5: Rrespondents family member: Sl. No No.of family No.of Respondendents 12 17 35 23 13 100 Percentage 12% 17% 35% 23% 13% 100% members 2 1 3 2 4 3 5 4 More than 5 5 Total Source: Primary data INTERPRETATION: Among the respondents surveyed, the respondents family strength is 12% of them are have family member of the 2, 17% of them belongs to 3 member family group,35% and 23% of respondents are belonging to respectively to family members are 4 and 5 members group and the last 13% of the respondents are having a more than 5 family members group. Table # 6: Rrespondents per day consumption of milk : Sl. No 1 2 3 4 Per day consumption Less than ½ liter ½ liter 1 liter 2 liters No.of Respondendents 8 23 42 16 Percentage 8% 23% 42% 16% 46 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad More than 2 liters Total Source: Primary data 5 11 100 11% 100% INTERPRETATION: It has been observed form the above table 8% respondents are consumption of milk per day is less than ½ liters most of the this group is belonging in to the 2 family members, 23% are consumption is ½ liter per day , 42 are consume the 1 liter per day, 16% of respondents are consuming the 2 liters per day. And the 11% respondents are consuming the milk per day more than 2 liters. Table # 7: Rrespondents presently using milk : Sl . No 1 2 3 4 5 Brand Nandini SriKrishana Arokya Spurti Other (Datta,Gopal,Bharat,RamRahim ) Total Source: Primary data 100 100% No.of Respondendents 48 19 23 06 04 Percentage 48% 19% 23% 06% 04% INTERPRETATION: Among the respondents surveyed, the respondents are presently using their own selective brand milk. In the respondent 48% of them are consume the presently a Nandini brand milk. And 19% of respondents are go throw the Sri Krishana milk .23% are consume the Arokya Milk, 6% and 4% respondents are using the respectively Spurti and other milk brand and local milk.. Table # 8: How many cunsumers are loyal to the Nandini Milk : Sl. No 1 2 Opinioun Yes No No.of Respondendents 43 57 Percentage 43% 57% 47 Kousali Institute of Management Studies, Dharwad. Karnataka Milk Federation, Dharwad Total Source: Primary data 100 100% INTERPRETATION: It has been observed form the above table The 43% of respondents are loyal to the Nandini brand milk and the last finding the 48% of the respondents are presently using the Nandini brand milk but among the 48% of respondents continue or in the fetcher 5% of the respondents are not loyal to the among the Nandini brand milk. and the remaining 57% of respondents are not loyal to Nandini brand milk. Table # 9:Among three brand of Nandini milk the respondents favorite brand is: Sl. No 1 2 3 Source: Primary data Various brands in Nandini Nandini Toned Nandini Standard Nandini Shubham Total No.of Respondendents 22 32 46 100 Percentage 22% 32% 46% 100% INTERPRETATION: Among the respondents surveyed, the respondents are favorite bands among three brand of Nandini milk 22% respondent say that they go for a Nandini Toned milk, 32% of respondents are say that their favorite brand is Nandini Standard and the remaining 46% respondents favorite brand is Nandini Shubham. Table # 10: Purpose of using the Nandini milk: Kousali Institute of Management Studies, Dharwad. 48 Karnataka Milk Federation, Dharwad Sl . No 1 2 3 4 Source: Primary data Purpose Direct consumption Tea/ coffee Curds Other purpose Total No.of Respondendents 18 53 20 09 100 Percentage 18% 53% 20% 09% 100% INTERPRETATION: It has been observed form the above table 18% respondents are consumption purpose of using milk for the direct consumption, 53% are consumption purpose of using milk for the Tea/ coffee , 20% are using for a curd making and 9% of respondents are using for other propose. Table # 11: Respondents while purchasing Milk factors are consider: Sl . No 1 2 3 4 5 6 Factors Brand name Price Thickness Long shelf life Attractive packing Others (Pure, Fat content, Easy availibility ) Total Source: Primary data No.of Respondendents 10 14 26 32 8 10 100 Percentage 10% 14% 26% 32% 8% 10% 100% INTERPRETATION: It has been observed form the above table 10% respondents are while purchasing Milk Brand name was consider, 14% are consider the Price, 26% of respondents are considering a Thickness of the milk, the meager of respondents are wile purchasing milk they consider a Long shelf life, and 8% of respondents are consider a Attractive packing and the remaining respondents are 10% are consider a pure, Fat contents, Easy availability.. Table # 12: Awareness of the NandiniProducts : Kousali Institute of Management Studies, Dharwad. 49 Karnataka Milk Federation, Dharwad Sl. No 1 2 Total Source: Primary data Opinioun Yes No No.of Respondendents 94 6 100 Percentage 94% 6% 100% INTERPRETATION: Among the respondents surveyed, the respondents are know about the Nandini product are 94% of respondents are say yes and the remaining 6% of respondents are know about the Nandini milk but they don’t know about the other Nandini products. Table # 13: Sources are help to come to know about Nandini Products? Sl . No 1 2 3 4 5 Sources Friends or Neighbors Agents Banners Wall painting Meadia (TV, Radio or No.of Respondendents 19 8 25 29 13 94 Percentage 20% 8% 27% 31% 14% 100% News papers) Total Source: Primary data INTERPRETATION: Among the respondents surveyed, the respondents are known about the Nandini products are 94% of respondents are say yes. In this known category I Question to the respondents how to know about the Nandini Products. The 20% of respondents are known to the friends and the Neighbor hoods, 8% of respondents are know through to agents, 27% of respondents are known to a banners and the reaming 31%and 14% of the respondents are respectively know about the Nandini product through the wall painting and media. Kousali Institute of Management Studies, Dharwad. 50 Karnataka Milk Federation, Dharwad Table # 14: Do you get above product whenever you ask in the shop? Sl . No 1 2 3 Source: Primary data Opinion Yes Some time Yes No Total No.of Respondendents 57 20 17 94 Percentage 61% 21% 18% 100% INTERPRETATION: It has been observed form the above table 61% respondents are satisfied with a they ask in the shop for Nandini product. 21 % of consumers are some time get Nandini product in all shops and the remaining 17% of respondents are not satisfied with the marketing of Nandini product are not get it so easily. Table # 15: Respondents while purchasing Nandini products factors are consider: Sl . No 1 2 3 4 5 6 Source: Primary data Factors Availability Price Taste Quality Attractive packing Adertisement Total No.of Respondendents 10 14 22 30 8 16 100 Percentage 10% 14% 22% 30% 8% 16% 100% INTERPRETATION: It has been observed form the above table 10% respondents are while purchasing Nandini Milk products availability consider, 14% are consider the Price, 22% of respondents are considering a Test of the milk product, the meager of 30% respondents are wile purchasing Nandini milk product they consider a Quality , and 8% of respondents are consider a Attractive packing and the remaining respondents are 16% are consider a Advertisements. Kousali Institute of Management Studies, Dharwad. 51 Karnataka Milk Federation, Dharwad Table # 16s: Are you satisfied with the service given by the KMF ATM’s and Parlor? Criteria Highly satisfied Satisfied Neutral Dis satisfied Highly dis satisfied Total Source: Primary data Sl . No 1 2 3 4 5 No.of Respondendents 4 27 47 14 8 100 Percentage 4% 27% 47% 14% 8% 100% INTERPRETATION: Among the respondents surveyed, the 4% of respondents are highly satisfied with service providing by the KMF and there ATM’s or Parlor. The 27% of respondents are satisfied with a service given by KMF, 47% of respondents are Neutral satisfied with a KMF service or Availability ,and 14%and 8% of the respondents are respectively Dis satisfied and Highly dis satisfied with the service given by the KMF and their ATM’s or Parlor. FINDINGS IN THE ORGANIZATION: Nandini products have a good brand image in the Market.  Pricing strategy of Nandini is appreciated by its customers.  Proper training programs are going on from past few years.  Trade union is in active.  The security in the Production house and the DMU need to be improve.  Nandini is started with customer contact programs in order to get first hand feedback from its customer and also to improve its products.  The various private brands have been trying to give a really tough competition by giving the agents high trade margins.  In the DMU the co-ordination between the subordinate is appreciable.  DMU has a waste area of operation which is geographically spread and which leads high procurement and distribution charges.  Lack of consumer awareness about the wide range of products sold.  The dealers wants only more commission because they also suffer same problem with other brands also but they complains with us only. Kousali Institute of Management Studies, Dharwad. 52 Karnataka Milk Federation, Dharwad  The organization is playing an important role in developing the economic the villages.  The powder making plant has taken an vital role in Dharwad Milk Union.  In some cases it is proven that DMU also not solved the problems on the spot because it is not allows a single person to take decision because this is a co-operative sector.  Another important problem is the under utilization of the resources available. The plant capacity utilization of DMU is very less which is leading the organization to loss. The various machineries install must be run even when quality of milk handled is less. This adds up a huge unwanted expense to DMU. viability of SUGGESTIONS ➢ The retailers and dealers should be satisfied with commission and schemes so that they can improve the sales in the market. ➢ The company should come up with new products with different varieties and attributes to attract the customers. ➢ To advertise about all the products in the market. ➢ The organization can build good infrastructure better than these like maintaining good garden etc. ➢ If the company wants to restart the production of “Double Toned Milk”, firstly it has to provide sufficient knowledge and awareness about the attributes of products as compared to others. Kousali Institute of Management Studies, Dharwad. 53 Karnataka Milk Federation, Dharwad CONCLUSION It was an exciting experience to me working with DMU Dharwad. From this project I learnt about the marketing tactics used by Dharwad Milk Union. Dharwad Milk Union is a reputed organization which has developed its goodwill in the market to compete with other famous brands such as Sphurti, Arokya, Srikrishna etc. It has to adopt modern technology in the production process and can do better marketing compared with others. It has to increase the rate of commission payable to its agents or dealers or retailers. DMU is functioning well for the social as well as economical upliftment of the rural population. To survive in the market the company needs to adapt an aggressive marketing policy as of competitors. Last but not the least I would like to conclude DMU as good organization to work as well as to interact with people. All the workers and members of the union nicely motivated me. Kousali Institute of Management Studies, Dharwad. 54 Karnataka Milk Federation, Dharwad The Hubli Dharwad retailers and hotel owners co-operated well and supported me in completing and making this project a successfully. RECOMMENDATIONS     The retailers and dealers should be satisfied with commission schemes so that they can improve the sales in the market. The company should come up with new products with different varieties and attributes to attract the customers. The advertise about the entire product line in the market. The organization can build good infrastructure better than these like maintaining good garden. Kousali Institute of Management Studies, Dharwad. 55 Karnataka Milk Federation, Dharwad LEARNING EXPERIENCE GAINED IN THE KMF 1. Got complete knowledge of quality testing. 2. Method of maintaining accounts in proper manner. 3. Learnt about the marketing strategy and sales promotion. 4. To know about the types of milk and how can it will be stored in the cold 5. Proper manner of maintaining punch cards and every time alert security centers. 6. Learnt about the distribution channels it contains wide area of networking also speed of operation. storage. Kousali Institute of Management Studies, Dharwad. 56 Karnataka Milk Federation, Dharwad Kousali Institute of Management Studies, Dharwad. 57