ManagementProject INTRODUCTION TO THE STUDY As a part of Bachelor of Business Administration, the researcher conducted a management project on any of the private/public organization. As a part of the project under prescribed syllabus of Mahatma Gandhi University, Kottayam, the researcher had selected a well established and well reputed company , Kerala Solvent Extractions Ltd.The researcher selects the topic “A STUDY ON DEALERS SATISFACTION WITH REFERENCE TO KS MILK IN TRICHUR TOWN”. Every company wants to know present position of its production. This is because with its information they can develop marketing strategies to maintain the current position. If the company’s market position is not good it has to formulate different marketing strategies to make the brand better positioned with this aim in mind researcher took the problem to find out the market position of K S milk among its competitors. The project is done at KSE dairy unit Konikkara, Marthakkara, Thrissur district, Kerala. KSE is the number one cattle feed producing company in India. Its product is KS milk. This project is to find out the market position of KS milk with respect to its competitors in Thrissur district in terms of quality, brand loyalty and promotional activities. 1 Nirmala College of Information Technology, Chalakudy Management Project RATIONALE OF THE STUDY As a part of curriculum the researcher has done the study on the “A STUDY ON DEALERS SATISFACTION WITH REFERENCE TO KS MILK IN TRICHUR TOWN”. The need of the study is to fulfill the requirements of the syllabus provided for the completion of Bachelor of Business Administration course as per Mahatma Gandhi University. This marketing research tries to highlight the threats and position of KS milk. This study is intended to the dealer’s satisfaction level of KS milk. This study also analyzes the customer’s satisfaction level regarding the product. The researcher has selected this topic as it is relevant to the company and helps to understand the working condition and to improve market position of the company. 2 Nirmala College of Information Technology, Chalakudy Management Project OBJECTIVES OF THE STUDY 1. To find out the dealers attitude towards branded milk. 2. To identify reason as to why customers and dealers prefer KS milk. 3. Find out the level of awareness among the dealers regarding KS milk and other KS products. 4. To evaluate present market condition of KS milk. 5. To find out the expectation of dealers from the company side. 6. To know the buying behavior and motive of customers. 7. To find out how dealers rate the promotional activities. 8. To identify the competitors of KS milk in Trissur town 3 Nirmala College of Information Technology, Chalakudy Management Project HYPOTHESIS A hypothesis, generally means a mere a assumption or supposition to be proved or disproved. But for a researcher hypothesis is a normal question that he intends to resolve .Hypothesis is a tentative proposition formulated for empirical testing. It is a tentative answer to a research question. It is tentative because its validity has to start somewhere. This point of start is called hypothesis is usually considered as the principal instrument in research. Its main function is to suggest new experiments and observations. In fact, many experiments are carried out with the deliberate object of testing hypotheses. Decision-makers often face situations wherein they are interested in testing hypotheses on the basis of available information and then take decisions on the basis of such testing. There are two types of hypothesis they are: i. NULL HYPOTHESIS The null hypothesis formally describe some aspects of statistical behavior of a set of data .The null hypothesis is a hypothesis which the researcher tries to disproves, reject or nullity in statistical hypothesis testing. The description is assumed to be valid unless the actual behavior of the data contradicts this assumption. H0-The dealers of K.S milk are satisfied ii. ALTERNATIVE HYPOTHESIS Alternative hypothesis is the hypothesis that the restrictions or set of restrictions to be tested does not hold .The alternative hypothesis which is opposite of the null 4 Nirmala College of Information Technology, Chalakudy Management Project hypothesis is stated expressing a relationship between two variables or indicating difference between groups. H1- The dealers of K.S milk are not satisfied RESEARCH METHODOLOGY Research is a diligent and systematic inquiry and investigation into the subject inorder to discover a revise facts, theories, applications etc. Methodology is a system of methods followed by particular discipline. Thus research methodology is the way how we conduct our research. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. Researchers not only need to know how to develop certain indices or tests, how to calculate the mean, the mode, the median or the standard deviation or chi-square, how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why. Researchers also need to understand the assumptions underlying various techniques and they need to know the criteria by which they can decide that certain techniques and procedures will be applicable to certain problems and others will not. All this means that it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem. For example, an architect, who designs a building, has to 5 Nirmala College of Information Technology, Chalakudy Management Project consciously evaluate the basis of his decisions, i.e., he has to evaluate why and on what basis he selects particular size, number and location of doors, windows and ventilators, uses particular materials and not others and the like. Similarly, in research the scientist has to expose the research decisions to evaluation before they are implemented. He has to specify very clearly and precisely what decisions he selects and why he selects them so that they can be evaluated by others also. RESEARCH DESIGN The research design is a conceptual framework within which the researcher is to be conducted .Rather it is the skeleton of the research work to be undertaken, which can be modified to suit the nature and procedure of the research. A research design is defined as “the orderly arrangement of elements and conditions for the collection and analysis of data in a manner that aims to combine relevance to the research objective with economy in procedure.” Rather it is a plan of action or blue print for the collection and analysis of data. A suitable research design shall be selected for the study in hand based on the nature and purpose of the study. There are many types of research design they are: i. ii. iii. iv. Exploratory research design. Descriptive research design. Diagnostic research design. Experimental research design. The researcher here selects descriptive research design. DESCRITIVE RESEARCH DESIGN A descriptive research design is concerned with the detail description of certain functional variables and characteristics of a problem situation since it is concerned with the explanation of the problem situation and allied variables its rather called explanatory research .Descriptive research should define the who , 6 Nirmala College of Information Technology, Chalakudy Management Project what , where , why and how aspects of the research. Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present .The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and co relational methods. POPULATION In any statistical investigation we are interested in studying the various characteristics of individuals or item of a particular group. This group of individuals study is known as population or universe .Therefore universe is the aggregate of all the units to be studied in any field of enquiry. In statistics, “Population is the aggregate of objects, animates or in animates under study in any statistical investigation”. It is thus a collection of individuals or of the values or of the result of operations which can be numerically specified. Thus, all items in any field of inquiry constitute a ‘Universe’ or ‘Population.’ The total number of dealers of K.S milk in Trissur town is 130. CENSUS A complete enumeration of all items in the ‘population’ is known as a census inquiry. It can be presumed that in such an inquiry, when all items are covered, no element of chance is left and highest accuracy is obtained. But in practice this may not be true. Even the slightest element of bias in such an inquiry will get larger and larger as the number of observation increases. Moreover, there is no way of checking the element of bias or its extent except through a resurvey or use of sample checks. Data obtained from each and every unit of population is likely to be 7 Nirmala College of Information Technology, Chalakudy Management Project more accurate and reliable. The possibility of bias and prejudice is minimum. It is intended to collect information from all the 130 dealers in Trissur town. DATA COLLECTION METHOD The task of data collection begins after a research problem has been defined and research design/ plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz., primary and secondary .Thus the researcher have provided with two types of data collection namely primary and secondary. i. PRIMARY DATA COLLECTION Primary research involves the collection of data that does not already exist, which is research to collect original data. Primary research is often undertaken after the researcher has gained some insight into the issue by collecting secondary data. Primary data sources are the sources by which data are collected originally for a certain purpose. The data collected from primary sources are called primary data. Methods used for the collection of Primary data can be: Observation method. Interview method. Through schedules. Questionnaire method. The researcher selects questionnaire as a tool for collecting data. ii. SECONDARY DATA COLLECTION 8 Nirmala College of Information Technology, Chalakudy Management Project Secondary data is the data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research. The secondary data collection must need much care for the making of minute and scrutiny. Secondary Data is the data or information that is already available. This data is collected by a person or organization other than the use of the data. Advantages of secondary data are that it is cheap and inexpensive. It is easily accessible. It is already available. It saves time and efforts. It is unobtrusive. It avoids data collection problems and it provides a basis for comparison. Secondary Data can be collected from various sources like: Reference books Magazines Websites Already published reports Newspapers Journals and publications Research papers The researcher here selects reference books, already published reports and websites for collecting data. 9 Nirmala College of Information Technology, Chalakudy Management Project VARIABLES UNDER STUDY Two types of variables under study are dependent and independent variables. i. DEPENDENT VARIABLE Dependent variable, those are having an impact in tune with any change in the other independent variables. A dependent variable is what you measure in the experiment and what is affected during the experiment. It is called dependent because it ‘depends’ on the independent variable. In a scientific experiment, you cannot have a dependent variable without an independent variable. Dependent variables can be defined as the variables under study which are changeable with a variation in the independent variables. The dependent variable in this study is: A study on dealers satisfaction with reference to K.S milk in Trissur town. ii. INDEPENDENT VARIABLE Independent variable, those which don’t vary or get influenced by any change in other variables. Manipulating the variables is the main tool for experimentation. Independent variables are those variables which depend upon the facts which help them. It can be changed as required, and its values do not represent a problem 10 Nirmala College of Information Technology, Chalakudy Management Project requiring explanation in an analysis. These variables do not vary or are influenced by any change in other variable. The independent variables of this study are: Quantity Quality Price Customer satisfaction Commission Delivery from the side of company Seasonal offers Brand preference Product knowledge Dealers meeting Range of products Nature of product Packages Competitors price and commission Credit sales 11 Nirmala College of Information Technology, Chalakudy Management Project DURATION OF STUDY The duration of the project study was a period of 45 days. LIMITATIONS OF THE STUDY Response received could be incorrect and misleading. Absence of respondents at their premises was a major constraint. The scope of survey was limited to Trissur town. 12 Nirmala College of Information Technology, Chalakudy Management Project MARKETING MIX Marketing mix is the combination of the elements of marketing and what roles each element plays in promoting your products and services and delivering those products and services to your customers. Elements of the Marketing Mix The elements of the marketing mix are also referred to as the 5 P's of marketing. For years marketers referred to the 4 P's of marketing. Only recently has a 5th P been added. Whether you subscribe to the theory that there are four P's or five P's of marketing, this is essentially referred to as your "marketing mix". The 4 P's of the Marketing Mix The original 4 P's of marketing (although they have been renamed a bit over the years) that were the elements of marketing mix is: 13 Nirmala College of Information Technology, Chalakudy Management Project Product – The products or services offered to your customer: Their physical attributes what they do, how they differ from your competitors and what benefits they provide. Price – How you price your product or service so that your price remains competitive but allows you to make a good profit. Place (Also referred to as Distribution) – Where your business sells its products or services and how it gets those products or services to your customers. Promotion – The methods used to communicate the features and benefits of your products or services to your target customers CHANNELS OF DISTRIBUTION A channel of distribution or trade channel is defined as the path or route along which goods move from producers or manufacturers to ultimate consumers or industrial users. In other words, it is a distribution network through which producer puts his products in the market and passes it to the actual users. This channel consists of: - producers, consumers or users and the various middlemen like wholesalers, selling agents and retailers (dealers) who intervene between the producers and consumers. Therefore, the channel serves to bridge the gap between the point of production and the point of consumption thereby creating time, place and possession utilities. A channel of distribution consists of three types of flows: Downward flow of goods from producers to consumers Upward flow of cash payments for goods from consumers to producers 14 Nirmala College of Information Technology, Chalakudy Management Project Flow of marketing information in both downward and upward direction i.e. Flow of information on new products, new uses of existing products, etc from producers to consumers. And flow of information in the form of feedback on the wants, suggestions, complaints, etc from consumers/users to producers. An entrepreneur has a number of alternative channels available to him for distributing his products. These channels vary in the number and types of middlemen involved. Some channels are short and directly link producers with customers. Whereas other channels are long and indirectly link the two through one or more middlemen. These channels of distribution are broadly divided into four types: Producer-Customer: - This is the simplest and shortest channel in which no middlemen is involved and producers directly sell their products to the consumers. It is fast and economical channel of distribution. Under it, the producer or entrepreneur performs all the marketing activities himself and has full control over distribution. A producer may sell directly to consumers through door-to-door salesmen, direct mail or through his own retail stores. Big firms adopt this channel to cut distribution costs and to sell industrial products of high value. Small producers and producers of perishable commodities also sell directly to local consumers. Producer-Retailer-Customer: - This channel of distribution involves only one middleman called 'retailer'. Under it, the producer sells his product to big retailers (or retailers who buy goods in large quantities) who in turn sell to the ultimate consumers. This channel relieves the manufacturer from burden of selling the goods himself and at the same time gives him control over the process of distribution. This is often suited for distribution of consumer durables and products of high value. 15 Nirmala College of Information Technology, Chalakudy Management Project Producer-Wholesaler-Retailer-Customer: - This is the most common and traditional channel of distribution. Under it, two middlemen i.e. wholesalers and retailers are involved. Here, the producer sells his product to wholesalers, who in turn sell it to retailers. And retailers finally sell the product to the ultimate consumers. This channel is suitable for the producers having limited finance, narrow product line and who needed expert services and promotional support of wholesalers. This is mostly used for the products with widely scattered market. Producer-Agent-Wholesaler-Retailer-Customer: - This is the longest channel of distribution in which three middlemen are involved. This is used when the producer wants to be fully relieved of the problem of distribution and thus hands over his entire output to the selling agents. The agents distribute the product among a few wholesalers. Each wholesaler distributes the product among a number of retailers who finally sell it to the ultimate consumers. This channel is suitable for wider distribution of various industrial products DEALER A dealer facilitates market liquidity by intermediating between transistors to whom time is important in exchange for charging buyers a higher price than he pays sellers. A value-based investor may also fulfill this function, but at a larger bid-asked spread than that imposed by the dealer. Relative to the valuebased investor, the dealer has limited capital, hence limited ability to absorb risk; he will thus limit the position-long or short-he is willing to take. When the dealer's position reaches a maximum, he will lay off to the only other transactor motivated by price-the value-based investor. The dealer's price is tied to the value-based 16 Nirmala College of Information Technology, Chalakudy Management Project investor's price at these layoff points. As the value-based investor shifts his prices in response to new information, the dealer's interior prices shift along with his layoff prices. An investor should realize that, when he trades with the crowd, he is trading at the value-based investor's spread, which may be many times the size of the explicit dealer's spread. More generally, the actions of the crowd--whether it is buying or selling, and in what volume will determine whether the price of trading quickly is high or low, hence whether the value of his information justifies trading. FUNCTIONS OF DEALERS Creating Value The value of a product to a consumer, called its utility, is a measure of how much it improves the person's life. There are four types of utilities: Time, place, form and possession. Intermediaries add to time utility by making products accessible when people want them. They create place utility by having goods available where consumers want to shop. Possession utility involves helping people take title to an item, like a car dealer arranging financing. Form utility is when an intermediary makes products more usable or convenient. For example, soda bottlers transform flavoured syrups into soft drinks. Transactional Functions The transactional functions of intermediaries involve buying, selling and risk taking. Wholesalers or agents buy products from manufacturers in sufficient quantities to stock the shelves of multiple stores. They promote the goods to build sales, using personal salespeople and various marketing communication devices aimed at retailers. While buying and selling, all intermediaries take a measure of risk. That is because the inventory they stock in their warehouses can lose competitive appeal or become obsolete before it is sold. 17 Nirmala College of Information Technology, Chalakudy Management Project Logistical Functions Most mass market products must be manufactured in large quantities to achieve economies of scale, but few producers can afford to store their inventories or ship small numbers of items to individual consumers. Instead, they rely on intermediaries to perform these and other logistical functions. For example, frozen food manufacturers ship to supermarkets, not direct to consumers' homes. Book publishers rarely sell to bookstores; they do business primarily with book wholesalers, who assemble large assortments of new releases and then distribute them in accordance with reader demand. Facilitating Functions Facilitating functions include various activities performed by intermediaries to make exchanges easier for consumers. This often involves collecting and disseminating information. For example, brokers who buy fresh beef or pork from ranchers inspect and grade the meat to enable buyers to accurately compare alternatives. Fruit and vegetable wholesalers sort and certify the freshness of produce. Another facilitating function is the provision of credit and other financial services. This is especially important among retailers, who commonly issue credit cards and offer layaway programs. BENEFITS OF INTERMEDIARIES 18 Nirmala College of Information Technology, Chalakudy Management Project If selling directly from the manufacturer to the consumer was always the most efficient methodology for doing business, the need for channels of distribution would be obviated. Intermediaries, however, provide several benefits to both manufacturers and consumers: improved efficiency, a better assortment of products, reutilisation of transactions, and easier searching for goods as well as customers. The improved efficiency that results from adding intermediaries in the channels of distribution can easily be grasped with the help of a few examples. Take five manufacturers and 20 retailers, for instance. If each manufacturer sells directly to each retailer, there are 100 contact linens line from each manufacturer to each retailer. The complexity of this distribution arrangement can be reduced by adding wholesalers as intermediaries between manufacturers and retailers. If a single wholesaler serves as the intermediaries, the number of contacts is reduced from 100 to 25: five contact lines between the manufacturers and the wholesaler, and 20 contact lines between the wholesaler and the retailers. Reducing the number of necessary contacts brings more efficiency into the distribution system by eliminating duplicate efforts in ordering, processing, shipping, etc. In terms of efficiency there is an effect of diminishing returns as more intermediaries are added to the channels of distribution. If, in the example above, there were three wholesalers instead of only one, the number of essential contacts increases to 75: 15 contacts between five manufacturers and three wholesalers, plus 60 contacts between three wholesalers and 20 retailers. Of course this example assumes that each retailer would order from each wholesaler and that each manufacturer would supply each wholesaler. In fact geographic and other constraints typically eliminate some lines of contact, making the channels of distribution more efficient. Intermediaries provide a second benefit by bridging the gap between the assortment of goods and services generated by producers and those in demand from consumers. Manufacturers typically produce large quantities of a few similar 19 Nirmala College of Information Technology, Chalakudy Management Project products, while consumers want small quantities of many different products. In order to smooth the flow of goods and services, intermediaries perform such functions as sorting, accumulation, allocation, and creating assortments. In sorting, intermediaries take a supply of different items and sort them into similar groupings, as exemplified by graded agricultural products. Accumulation means that intermediaries bring together items from a number of different sources to create a larger supply for their customers. Intermediaries allocate products by breaking down a homogeneous supply into smaller units for resale. Finally, they build up an assortment of products to give their customers a wider selection. A third benefit provided by intermediaries is that they help reduce the cost of distribution by making transactions routine. Exchange relationships can be standardized in terms of lot size, frequency of delivery and payment, and communications. Seller and buyer no longer have to bargain over every transaction. As transactions become more routine, the costs associated with those transactions are reduced. The use of intermediaries also aids the search processes of both buyers and sellers. Producers are searching to determine their customers' needs, while customers are searching for certain products and services. A degree of uncertainty in both search processes can be reduced by using channels of distribution. For example, consumers are more likely to find what they are looking for when they shop at wholesale or retail institutions organized by separate lines of trade, such as grocery, hardware, and clothing stores. In addition, producers can make some of their commonly used products more widely available by placing them in many different retail outlets, so that consumers are more likely to find them at the right time. 20 Nirmala College of Information Technology, Chalakudy Management Project DAIRY INDUSTRY The dairy industry is recognized as one of the largest and most important of food industries. The dairy industry exists for one purpose – to provide, at a reasonable cost, milk and milk products that satisfy the consumer’s needs and fulfils his nutritional requirements. The industry means different things to the different participant- the producers, the dairy handlers and consumers. The word “Dairy” was derived from the Middle English word, “deirie” meaning day or maid servant worked. Dairy now connotes a wide range of activities starting with the production of milk in the farm to the point it reaches the consumer in the form of liquid together by a diverse field of disciplines such as dairy science, animal husbandry, crop husbandry, and dairy engineering. Management science is applicable in each of these disciplines and integrates them, to achieve the objective of providing milk to the consumer by making an optimum use of Earth’s renewable resources for production of milk. The importance of dairying stems from the role of milk in human nutrition. Food serves two major functions in human nutrition, to provide energy and to furnish the elements essential for growth and replacement of body tissues. All the three main forms of food-carbo-hydrates, fats and proteins provide the energy, but only proteins can supply nitrogen and amino-acids essential for growth and replacement of tissues. In planning for human nutrition, there are two possible stages the first has a limited objective of holding back hunger while the second is achieved by providing a balanced diet which includes ascertain quantity of animal protein to include the essential amino-acids in the diet. The developed countries have achieved the second stage. The developed countries need to plan their 21 Nirmala College of Information Technology, Chalakudy Management Project agriculture for providing adequate balanced nutrition from the available resources within the country. The relevance of the dairy industry, at this stage of planning for food, is in promoting supply of balanced diet to the population. In terms of biological value human nutrition egg protein is the most important, followed by the protein from milk. Egg or milk protein can furnish all the amino-acids essential for normal growth and healthy life processes, provided that they are consumed inadequate amounts. Fish, meat and poultry products are also high in the scale of biological value. Vegetable protein from wheat, maize, rice, beans and nuts are of low biological value, particularly when it represents the only source of protein. The essential amino-acids are not provided in sufficient quantities. In many of the developing countries, more so in India, milk may form the only source of animal protein. “One quart (approximately on litre) of milk furnishes approximately all the fat, calcium, phosphorus and riboflavin; half the protein; one third of the vitamin A, acetic acid and thiamin; one fourth the calories and with the expectation of iron, copper, magnesium and manganese, all the minerals needed daily considerable amounts of nicotinic and chorine are also provided”. Milk is the secretion of mammary glands, produced primarily for feeding the young. All mammals produce milk. However, milk is obtained for commercial consumption purposes from domestic animals, particularly the cow. The milk of different species essentially contains the same constituents. The composition may, however vary from species to species in minor proposition. The variation in milk composition is likely to occur within the species due to a number of factors like breed, age, stage of lactation, individual variation, seasonal variation, variation from lactation to lactation, interval between milking, first and last milk, fitness of the animal and feed provided to the animal. Milk and cream are the main products of dairying. The other products are derived from these principle products. The industry faced with some general characteristics peculiar to dairying. The production of milk is seasonal mainly because of the nature and purpose of milk production. Milk is produced for the young calf and is, therefore, depended on the 22 Nirmala College of Information Technology, Chalakudy Management Project calving season. However, the demand for milk and milk products remain the same throughout the year. Milk is bulky and highly perishable. The milk handlers, therefore, have to process the milk and store it under refrigeration or reduce the bulk by drying before storage. Agriculture and allied industries account for nearly half the gross national income of India, one fourth of which is from dairy. The national economy of certain European countries like Denmark and Sweden are depended almost entirely on animal husbandry of which dairying is a major industry. In the US, dairy industry alone contributes to one fifth of the total agricultural income. Moreover, the consumer spends a fifth of his food expenses on milk and milk and milk products. Apart from the contribution, dairying needs to the economy and nutritional status of any country, the industry provides employments to thousands of people. In the US, over a quarter million people were employed by the dairy industry in 2000. In the tropics, where dairying is less developed, millions earn their income either partly or wholly from the dairy industry. 23 Nirmala College of Information Technology, Chalakudy Management Project INDIAN DAIRY INDUSTRY INTRODUCTION India is the highest milk producer in the entire globe. India is well known as the ‘Oyster’ of the global dairy industry, with opportunities galore for the entrepreneurs globally. It might be dream for any nation in the world to capitalize on the largest and fastest growing milk and milk products' market. The dairy industry in India has been witnessing rapid growth with liberalization. As the economy provides good opportunities for MNCs and foreign investors to release the full potential of this industry. The main objective of the Indian Dairy Industry is to manage the national resources in a manner to enhance milk production and upgrade milk processing using innovative technologies. The crossbred technology in the Indian Dairy Industry has further augmented with the viability of the dairy units by increasing the milk production per animal. Then subsequently milk production has also increased at an exponential rate while the benefits of an increase in milk production also reached the consumers from a relatively lower increase in the price of milk. The favorable price environment for milk producers for the Dairy Industry in India however appeared to have weakened during the 90's, a decline in the real price of milk being noticed after the year 1992. And then slowly regained it is glory after 1992 to till now. 24 Nirmala College of Information Technology, Chalakudy Management Project In India dairying from very much earlier is regarded as an instrument for social and economic development. The country’s milk supply comes from millions of small producers, who are dispersed throughout the rural areas. All these farmers maintain an average herd of one or two milch animals, comprising cows and/or buffaloes. Mostly ample labour and a small land base encourage farmers to practice dairying as an occupation subsidiary to agriculture. As income from crop production is seasonal instead dairying provides a stable which is a year-round income and also an important economic incentive for the small farmer. HISTORY OF INDIAN DAIRY INDUSTRY India had tremendous milk production in 40 years and has become the world’s largest milk-producing nation with a gross output of 84.6 million tons in 2001. The Indian Dairy Industry has achieved this strength of a producer-owned and professionally-managed cooperative system, despite the facts that a majority of dairy farmers are illiterate and run small, marginal operations and for many farmers, selling milk is their sole source of income. More than 10 million dairy farmers belong to 96,000 local dairy cooperatives, who sell their products to one of 170 milk producers’ cooperative unions who in turn are supported by 15 state cooperative milk marketing federations. In India dairy business has been practiced as rural cottage industry over the years. Semi-commercial dairy started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of the 19th century. Since Independence this Industry has made rapid progress. A large number of modern milk and milk product factories have since been established. The organized dairies in India have been successfully engaged in the routine commercial production of pasteurized bottled milk for Indian dairy products. The growth of Indian Dairy Industry during the last three decades has been impressive, at more than 5% per annum; and in the 90's the country has emerged as the largest producer of milk. This is not a small achievement when we consider the 25 Nirmala College of Information Technology, Chalakudy Management Project fact that dairying in India is largely stringent that farmers in general keep dairy animals in proportion to their free crop and also are available for family labor with little or no purchased inputs and a minimum of marketed outputs. The existence of restrictive trade policy milk in the dairy Industry and the emergence of Amul type cooperatives have changed the dairy farming practices in the country. Farmers have gained the favourable price for their milk and for their production which was essentially a self-reliant one is which is now being transformed into a commercial proposition. In India Milk production is dominated by small and marginal land-holding farmers and also by landless labourers who in aggregate own 70% of the national milch animal herd. And as the crop production on 78% of the agricultural land still depends on rain, which is prone to both drought and floods, rendering agricultural income is very much uncertain for most of the farmers. Dairying, as a subsidiary source of income and occupation, is real relief to most of the farmers in the society. Usually one or two milch animals enable the farmers to generate sufficient income to break the vicious subsistence agricultural-debt cycle. The Operation Flood which is the successful Indian dairy development programmed has analyzed that how food aid can be utilized as an investment in building the type of institutional infrastructure that can bring about national dairy development. Programmes like this, with similar policy orientations, may prove to be appropriate to dairy development in in India. India in the early 1950's was commercially importing around 55000 tonnes of milk powder annually to meet the urban milk demand. Most of the significant developments in dairying have taken place in India in this century only. PRESENT STATUS OF INDIAN DAIRY INDUSTRY The Indian Dairy Industry engages in the production and processing of milk & cream. This industry is involved in the manufacture of various dairy products like 26 Nirmala College of Information Technology, Chalakudy Management Project cheese, curd, yoghurt etc. The Indian Dairy Industry specializes in the procurement, production, processing, storage and distribution of dairy products. India as nation stands first in its share of dairy production in the international scenario. The industry contributes about Rs 1,15,970 to the national economy. Indian Dairy Industry is the largest milk producer all over the world, around 100 million MTIndian Dairy Industries value of output amounted to Rs. 1179 billion in 2004-05 which approximately equals combined output of paddy and wheat. With 1/5th of the world’s bovine population. In India the Milch animals constitutes 45% indigenous cattle, 55 % buffaloes, and 10% cross bred cows Intensive Dairy Development Programmed (IDDP): The Schemes, modified under this programmes are on the basis of the recommendation of the evaluation studies which were launched during Eighth Plan period and is being continued through out the Eleventh Plan with an outlay of Rs. 32.49 core for 2009-10. Strengthening Infrastructure for Quality and Clean Milk Production (CMP): this is a centrally sponsored scheme which was launched in October 2003, which had the main objective of improving the quality of raw milk produced at the every village level in the India. Dairy Venture Capital Fund- this is introduced in the Tenth Fiver Year Plan to bring about structural changes in unorganized sector, which would measure like milk processing at village level, marketing of pasteurized milk in a cost effective manner, quality or the up gradation of traditional technology to handle commercial scale using modern equipments and management skills. FURURE SCOPE OF INDIAN DAIRY INDUSTRY The value of the Indian dairy industry is expected to touch Rs 5 lakh crore by 2015, with milk output pegged at 190 million tonnes at the end of the period According to an Associated Chambers of Commerce and Industry of India 27 Nirmala College of Information Technology, Chalakudy Management Project (ASSOCHAM) study, the Indian dairy industry is growing at the rate of 10 per cent per annum. "Milk production is likely to reach about 190 million tonnes in 2015 from current level of about 123 million tonnes. India - the world's largest milk producer -- accounts for around 20 per cent of global milk production, with most of it consumed domestically. In India, about 60 per cent of milk is consumed in liquid form, while the remaining 40 per cent is used in the form of butter, clarified butter (desi ghee), cheese, curd, paneer, ice cream, dairy whiteners and traditional sweets. An upward spiral in prices, the lack of proper infrastructure like cold storages and absence of a transparent milk pricing system are affecting retail consumption of milk and leading to escalating milk prices in the domestic market. Andhra Pradesh, Bihar, Haryana, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh are the leading milk producing states in the country. 28 Nirmala College of Information Technology, Chalakudy Management Project DAIRY INDUSTRY IN KERALA Milk is an unavoidable element in the life of Keralites. In olden days, Kerala was far ahead in production of milk. But due to several reasons the production of milk is defined. Milk producers in Kerala are in the grip of a major crisis following the flow of large quantity of milk from outside the State at lower prices. According to a survey, the state produces 20.61 lakhs tons of milk per annum. The production, according to market sources, is insufficient to meet the demand of the state’s population. As a result, Kerala has become a major market for milk produced in neighboring States. Supplies from TamilNadu meet around 60% of the daily demand milk. Rapid increase in milk processing and marketing companies has resulted in tough competition leading to cut in prices. Thus, availability of milk at low prices from other States has created a crisis for the milk producers in the State farmers said. A dairy expert told Business Line that the only solution to the crisis was production of “good and pure milk” by which the Kerala milk producers could compete and recapture the market Dairy Development Board was created in 1962. The livestock Development and Milk Marketing Board for milk procurement and 29 Nirmala College of Information Technology, Chalakudy Management Project marketing was set up, followed by the Kerala Co-operative Milk Marketing Federation. But all these have failed to save the dairy sector and the farmers. One of the major problems being encountered is the non-availability of modern facilities to process and stock the entire milk produced during the peak season (in therainy months). As a result, during these months, not only are restriction imposed on the quantity procured but there is a cut in the prices by the co-operatives. The State has over 2,972 milk marketing their functioning unfavourable to the development of the sector. When the societies run by NGOs procure milk at Rs.10 per litre from the farmers by providing subsidy for cattle feeds, in Kerala they were being discouraged with taxes. Kerala requires 68.5 lakh tons of cattle fodder, of which they only 40 tons are available within the State. Nonavailability of land and improved variety of fodder grass has become major impediments. The estimated dairy consumption of milk in Kerala is 35.53 lakhs liters including the institutional consumption. The average daily production of milk in Kerala is estimated to be 32.72 lakhs liters per day. Hence there is a shortage of 2. 81 lakhs of milk per day . 30 Nirmala College of Information Technology, Chalakudy Management Project COMPANY PROFILE HISTORY OF KSE LTD KSE LTD is a public limited company is an incorporated with substantial capital participation by the Kerala state industrial development corporation limited. Trivandrum and though loans from industrial finance corporation of India, New Delhi. The company is engaged in the solvent extraction of ground nut cake and rice bran also. The oil thus obtained is moved for industrial purpose in to the market. In addition is full – fledged live stock feed division engaged in the production of ready mixed cattle feed. The company was registered in the year 1963. In 1973 the solvent extraction plant was started with processing capacity of 60 metric tones of cake per day. in1976 the company stated production of ready mixed feed with the production capacity of 50 metric tone per day and in 1983 the company increased 31 Nirmala College of Information Technology, Chalakudy Management Project the production of cattle feed to 120 tm per day which has recently been increased to 180 tm per day by the construction of a daily automated computerized plant . In 1988 company started a solvent extraction and cattle feed plat at Swaminathapuram near Palani, with production capacity of 150 mts of cattle feed per day and processing capacity of 100 – 120 mts of expeller extracted deoiled cake. In 1972, the company laser new cattle feed plant at Pothannur near Coimbatore with a production capacity of 80 mts per day and in 1995 company has leased a plan in my sore with the capacity of 50 mts per day. In 1996 the company started a new plant Vedagiry at Kottayam in Kerala with the capacity of 240 mts per day. Kerala solvent extraction limited come out with a premium public issue on march 1993 which was over subscribed , through the stock markets are showing a low trend , now Kerala solvents share is still quoted at Rs140 per share whose face value is Rs 10 this reflect the confidents of investing in the company . It was in 1963 that Kerala solvent extraction limited now known as KSE limited entered the solvent extraction industry setting up the very first solvent extraction plant in the largest producer of copra in the country , as much as 80 % of it , Kerala the infrastructure to exploit the potential of its abundant produce . While the oil industry in other parts of the country were thriving. The Dr. Lokhanathan committee, set up to feasibility of starting new industries in Kerala, recommended the establishment of 3 solvent extracting plants. And one of them, in Thrissur district. The oil mill owners in hand around Irinjalakuda , who were thinking in similar lines saw the opportunity and look the initiative to establish a solvent extraction unit. The solvent extraction plant went on the stream in 1972 and in 1976 a new plant was set up to manufacture ready mixed cattle feed, which was a pioneering step. Since then there, was no looking back. The last 3 decades have seen KSE emerging as a leader in solvent extraction and ready 32 Nirmala College of Information Technology, Chalakudy Management Project mixed cattle feed in the county and though these years of consideration and diversification KSE has gate a niche for itself. Today KSE commands the resources, expertise and infrastructure to manufacture a range of live stock feed in high volumes, coconut oil from coconut cake and refined edible oil. Since the early KSE hand endeavored to supply its products to customers through extensive net work of dealer and retailers which from a dedicated force behind the success of KSE. It is matter of pride that KSE is house hold name today .The KSE is a public limited company having around 6000 share holders. The board of directors consisting 10 directors in the executive committee responsible for the management the articles of association of the employers the board of directors of directors to appoint one as the chief managing director and one whole time director. The Chief Managing Director, Executive Director and Whole Time Director are the smooth running of day to day affairs of the company. Strategic decision of the company are taken by an executive body consisting of the Managing Director , Executive Director ,Whole Time Director , General Manager , Finance Manager , Nutritionist , Marketing Manager , Plant Manager and Purchase Manager . These executives are professional with vast experience in their areas of specialization. ESTABLISHMENT Kerala Solvent extraction limited now known as KSE limited was established in 1963 , by a hand full of coconut millers in an around Irinjalakuda . With a vision to over comes the crisis of the coconut oil industry. Initially started as a solvent extraction plant the company now produces 750 – 800 MTs of coconut cake a day with a four cattle feed production units and two solvent extraction plants. The company has diversified in to 9 the area of dairying by 33 Nirmala College of Information Technology, Chalakudy Management Project establishing two dairy plants for the production of pasteurized milk and milk products. It has obtained ISO recognition for its commitment to quality and professionalism. DAIRY DIVISION KSE started operation of its dairy division on 22 January 2000.The idea of diversification into dairy industry was the outcome of the desire for forward integration of the cattle feed business of KSE ltd, the company market a wide range of dairy products in the market. Its main area of operation is Thrissur and also some parts of Ernakulam and Malapuram.The products are toned homogenized milk ,ghee, curd, sambharam and ice cream.KSE has milk processing units in Thalayuth (Tamilnadu) and Konikkara in Thrissur have processing capacity of 20000 liters and 30000 liters per day. The brand name of milk and milk products is “KS” and ice cream is “vesta”. PRESENT STATUS OF THE COMPANY The pioneering plant of KSE at Irinjalakuda in many ways. It was first solvent extraction plant in Kerala. It was first manor factory in the locality, spread over 15acres. It was here set up its first cattle feed plant. The embodied the spirit of enterprise of group of committed people, who wanted to user in an era of modernity into a traditional society and change the industrial landscape of the state. Naturally, today the Irinjalakuda plant enjoys a flagship status and commands an edge on infrastructural strength. Taking great in technological development, 34 Nirmala College of Information Technology, Chalakudy Management Project the process of computerization in plant and office was initiated way back in 1987.Research and development plays an important role in the activities of KSE, The central R & D unit is located here. The plant houses a modern laboratory. The quality control cell here leads and guides other units and formulates stringent standards. The chief Nutritionist and Assistant manager quality controls are also based here. A proud symbol of growth, the Irinjalakuda unit is an inspiring force for the entire KSE family. KSE Limited an ISO 9001-2000 certified company is having an annual sales turnover Rs. 371 crores ; Irinjalakuda branch is the head office of the company. Only the cattle feed production is running in Irinjalakuda plant with a production capacity of 210 tones per day. In Swaminathapuram unit they have a model dairy farm with highly yielding animals maintained for conducting feeding trials and other experiments .In Konikkara unit which is main dairy division of KSE has made their products like “K.S. milk, K.S. ghee, K.S. curd, and butter milk” has already become popular in Thrissur, Ernakulum, Malappuram, and Alapuzha districts. In the year 2010 ice cream production also started in Vedagiri, Kottayam to meet growing demand in Kerala. GROWTH CHRONICLE Kerala solvent extraction limited was registered as a public limited company on 25th September 1963. The company was later on renamed as KSE ltd. and listed in stock exchange of Mumbai, Chennai, Cochin. The company started production in 1972 with a solvent extraction capacity of 40 mts per day. 35 Nirmala College of Information Technology, Chalakudy Management Project 1972 : Solvent plant commences operation. 1976 : Ready mixed cattle feed. 1980 : Production capacity of cattle feed increased to 60 MTs per day. 1983 : A fully automatic new cattle feed plant started operation capacity 120 MTs / per day. 1984 : Thus solvent extraction plant capacity increased to 80 MTs / day. 1987 : Cattle feed plant capacity increased to 180 MTs / day. 1988 : Cattle feed plant in Tamilnadu went into operation .capacity 100MTs 1989 : A solvent unit with a capacity of 120 tones per day. Commences operation at the Tamil Nadu plant. 1990 : Introduction of KS supreme pellets as by pass protein cattle feed in the market. 1991 : Palakad branch started. 1993 1994 : : KS enters export market. Keys forte, the new feed supplement for cattle feed introduced. 1995 : Cattle feed production started at my sore in Karnataka state Calicut branch started vegetables oil refining unit commenced operation “K.S.SUPREAM” at Irinjalakuda. 1996 : 240 TDP cattle feed plant at verdigris in Kottayam district started operation. 36 Nirmala College of Information Technology, Chalakudy Management Project 1997 : Company renamed as KSE LTD. 1998 : Fourth feed production unit at Palakad. 1999 : A modern children park & information center has been completed at Irinjalakuda. 2000 : Company started production & marketing of pasteurized milk and milk products. 2001 : Started operating solvent extraction plant and oil refining plant on lease at Kunjikod for processing coconut cake launched jersey in 50 kegs limited HDPE bags. 2002 : Irinjalakuda unit cattle feed plant capacity is increased to 195 MTs / day ice cream launched. 2003 : Vesta heaven ice cream par lour at Irinjalakuda and Marthakkara started producing cattle feed in leased plant at Edayar. 2004 : KSE bags productivity award. 2005 : Cattle feed production capacity there of to 200 MTs / day. 2006 : 200 TPD the solvent extraction plan of Kinfra Park. 37 Nirmala College of Information Technology, Chalakudy Management Project 2007 : Install 500 TPD cattle feed plant at Irinjalakuda unit. 2008 : Ice cream production unit commissioned at Thalayuthu. 2009 : CMD, CYM and others at the auto bagging station in the 500 TPD feed will wearing completion at Irinjalakuda. 2010 : Ice cream production unit at Vedagiri. 38 Nirmala College of Information Technology, Chalakudy Management Project OBJECTIVES OF THE COMPANY According to memorandum of association of the company. The most important objectives are following. 1 To produce , manufacturing , extract , refine , prepare , import , export sell and generally to deal in oil from seeds ,oil cakes and other oil bearing material to carry on the business of refining and hydro generation of oil and manufacturing of by products there and trades connected there with . 2 To acquire, erect, construct, establish, operate and maintain oil mills, extraction plant, ghee plant, work shop and other works. 3 To purchase, manufacture, sell or otherwise deal in oil cakes, washing soap, toilet soap, hair oil tinned products etc … VISION We shall endeavor to maintain leadership through quality products , explore new avenue in product development are marketing , create a stronger bond between the management , work force , dealers and customers , contribute to social development and rural enlistment and constantly strive for excellence for in all spheres of our activities . 39 Nirmala College of Information Technology, Chalakudy Management Project BOARD OF DIRECTORS Chairman and managing director : M.C Paul. Executive director : P.K. Varghese. Director and legal adviser : A.P.George. Director : K.P. John. Director : P.D.Anto. Director : Dr K.C. Vijayaraghavan. Director : John Francis k Director : T.R. Ragulal. Director : Dr. Jose Paul Thaliyath. Director : Joseph Xavier. Chief General Manager : Anand Menon. Company secretary -cum -general manager : R. Sankaranarayanan. 40 Nirmala College of Information Technology, Chalakudy Management Project CAPITAL OF THE COMPANY [Financial Highlight] Starting capital of the company is Rs 320 lakhs. Paid up capital 217 per share at Rs. 10. The turnover of the Company improved from Rs 454 crores to Rs 542 crores during the year ended 31st March, 2012, thus registering an increase of 19 % over that of previous. In the Dairy division, the volume of sale of ice cream remained more or less at the same levels that of previous year at 865 kl. The profit of Dairy division for the year 2011-12 is Rs 96.99 lakhs, which was at Rs 145.03 lakhs in the previous year. The over-all profit after tax thereby improved from Rs 449.81 lakhs in year 2010-11 to Rs 1,044.93 lakhs in the year under report. 41 Nirmala College of Information Technology, Chalakudy Management Project PRODUCTION UNIT IRINJALAKUDA UNIT The pioneering plan of KSE at Irinjalakuda in many ways. It was first solvent extraction plant in Kerala. It was first manor factory in the locality, spread over 15 arêtes. It was here set up its first cattle feed plant. The embodied the spirit of enterprises of group of committed people, who wanted to user in an era of modernity in to a traditional society and change the industrial landscape of the state. Naturally, today the Irinjalakuda plant enjoys a flag ship status and commands an on infrastructural strength. Taking great in technological development, the process of computerized in plant and office was initiated way back in 1987. Research and development plays an important role in the activities of KSE. The central R&D unit is located here. The plant houses a modern laboratory. The quality control cell here leads and guides other units and formulates standards. The chief nutritionist and assistant manager quality control are also based here. A proud symbol of growth, the Irinjalakuda unit is an inspiring force for the entire KSE family. SWAMINATHAPURAM UNIT The enthusiastic responses received on the introduction of KS cattle feed certain pockets of Tamilnadu promoted KSE to start a manufacturing unit in the state it self. This unit has a daily production capacity of 180 tones cattle feed processing capacity of 120 tones of coconut oil cake or 80 tones of bran per day. This major step towards reinforcing the strength of KSE. A solvent extraction plant was started the very next year. Spread out on 22 acres of land on the banks of river Amaravathi, this Rs.3.5 crores plant works round the clock. Keyes Forte is also 42 Nirmala College of Information Technology, Chalakudy Management Project manufactured at this unit. A model Dairy farm with high yielding animals is also maintained in the unit for conducting feeding trials and other experiments. VEDAGIRY UNIT The third cattle feed manufacturing unit of KSE at Vedagiry, is the most sophisticated and the finest in the country. This unit has the capacity to produce cattle feed in both “mash” and “pellet” forms. With a weekly production capacity of 1600 tones. In the year 2010 Ice Cream production was also started in Vedagiri, Kottayam to meet the growing demand in Kerala. PALAKAD UNIT A recent addition to KSE family is the live stock feed plant at Palakkad with a manufacturing capacity of 120 TPD, this plant caters predominantly to the needs of the northern district of Kerala. KORATTY UNIT Company acquired land from Kinfra Small Industrial Park, Koratty, Trichur Dist. And installed 200 TPD Solvent Extraction plant and 100 TPD Physical Refining Plant with a capital outlay of Rs. 14 crores for refining Vegetable oils. Solvent Extracted Coconut oil is refined in the plant and made edible. Commissioned fractionation Plant in March 2009 KONIKKARA UNIT KSE Limited entered in the field of milk procurement, processing and 43 Nirmala College of Information Technology, Chalakudy Management Project marketing of liquid milk and milk products in the year 2000. “K.S. PAAL, K.S. GHEE, K.S. CURD and BUTTER MILK” have already become popular in Trichur and Ernakulam, Malappuram and Alleppey Districts. Ice cream under the brand name “VESTA’ was launched during August, 2002 and have conquered the Kerala Market. THALAYUTHU UNIT – DAIRY DIVISION. In the year 2000 procurement and processing of milk also started in Thalayuthu Unit,near Palani. In 2008 Ice Cream production started in to cater the growing demands in Tamil Nadu. KSE LTD Location details Location type Factory / plant Address : Dairy unit Thalayathu - 624618 Tamil Nadu – India Phone – 252861 Factory / plant : Palakkad unit Palakkad – 678020 Kerala – India Ph: 2536332 Factory / plant : v/679J , Muppathadam PO Kochi – 683110 Kerala – India Ph: 2541070 44 Nirmala College of Information Technology, Chalakudy Management Project Factory / plant : Nanjaioothukuli Erode -638104 Tamilnadu – India Ph: 2500210 Registered office & factory : P.B. No. 20, solvent road, Irinjalakuda Thrissur -680121 Kerala – India Ph: 2825476 Factory / plant : Swaminathapuram unit Dindigul – 64213 Tamil Nadu – India Ph: 252560 Factory / plant : Vedagiry unit Kurumullur Kottayam – 686632 Kerala- India Ph: 2536829 Factory / plant : Palakkad unit, NIDA, Menonpara Road and kanji ode Palakkad – 678621 Kerala – India Ph: 2368176 Factory / plant : Dairy unit, Konikkara Thrissur – 680320 45 Nirmala College of Information Technology, Chalakudy Management Project Kerala – India Ph: 2351501, 2358806. Branch office : XXXlll/2837, Paropadi, Kozhikode -673012 Kerala – India Ph: 2370056 Factory / plant : Koratty unit, Kinfra Park Nalukettu road. Thrissur- 680308 Kerala – India Ph: 3257651 46 Nirmala College of Information Technology, Chalakudy Management Project ORGANIZATION STRUCTURE Board of Directors Chairman &Managing . Director. Executive Director. Chief General Manager. Compan y secretary – cumgeneral manager [finance] Chief Purchase manager Executive Officer Chief personnel manager Chief Marketing manager Executive Officer Assistant Manager Chief Quality manager Chief Production manager Chief nutritionist Assistant Manager 47 Nirmala College of Information Technology, Chalakudy Management Project Officer. Officer Assistant Manager Office Assistant. Assistant Manager Store Officer . Clerk Executive Officer Sales Executive Office Assistant Store Supervisor Clerk. Security guard Store clerk Office Assistant Worker Clerk PRODUCT OF KSE CATTLE FEED K.S ORDINARY (MASH ) K.S .SUPER (MASH ) K.S. SUPREME (PELLETS ) K.S. DELUXE ( PELLET ) DE OILED CAKE – JERSY K.S REFINED SUN FLOWER OIL DAIRY PRODUCTS 48 Nirmala College of Information Technology, Chalakudy Management Project K.S. MILK K.S GHEE K.S. SAMPARAM K.S BUTTERMILK VESTA ICE CREAM BUSINESS OPERATIONS 49 Nirmala College of Information Technology, Chalakudy Management Project C as h Raw materia l Work- in -progress Deb tors Finished goods The organization main business operations are buying , production , and selling in the operation of buying including purchase of Raw material that are needed for the production process .In the production the purchased raw material assembled and convert into finished goods . When it become necessary to milk larger number of cows, the cows would be brought to a shed or barn that was set up with bails were the cows could be confined while they were milked. One person could milk more cows this way, as many as 20 for a skilled worker. The raw milk they receives from farmers so as to extent its marketable life. two main type of process are employed heat treatment to ensure the safety of milk for human consumption and to lengthen its shelf – life , and 50 Nirmala College of Information Technology, Chalakudy Management Project dehydrating dairy products such as butter , hard cheese and milk powders so that they can be stored . 51 Nirmala College of Information Technology, Chalakudy Management Project TRADE UNION PRESENCE INTUC, CITU, BMC these 3 trade unions are presented in KSE ltd. trade union will influence working of the company. Trade union as the power to resist changes and this will effect normal working of the organization. Some times this trade unions working will be favorable to the company and some time it will make problem in the company 52 Nirmala College of Information Technology, Chalakudy Management Project MARKET SHARE Chart Title 10% 15% 10% KSE ltd MILMA SAKTHI PENTAGON 65% KS milk has a good market share in the current market. The firm has some competitors. Even though the concern have good market share by producing quality K.S with a reasonable price. 53 Nirmala College of Information Technology, Chalakudy Management Project COMPANY LIFE CYCLE: KS milk exist in the growth stage of the company life cycle. In this stage the sales are increased rapidly and try to expand the scale of production , and the main feature of growth stage is rising profit and lower cost of production per unit and competition increased in the market . 54 Nirmala College of Information Technology, Chalakudy Management Project COMPETITORS The main competitors of K. S. MILK are given below Milma Sakthi Pentagon Amul Vavins PDDP Amruth KPS etc …. 55 Nirmala College of Information Technology, Chalakudy Management Project FUTURE PROSPECTS AND GROTH PLAN The Animal feed division is expected to perform well in year 2012-13 also, though there is high volatility in the ingredient prices. There is good demand for the feed, and the company is unable to meet the demand in certain pockets. KSE is adding capacities to meet the increased demand. The increase in the price of milk by the Government of Kerala, will help to boost the cattle rearing, and company expect a steady demand in year 2012-13. Adjustment in feed price, to match the ingredient prices, will be possible, without losing the market share, when the demand is steady. Good quality copra cake is available now as per requirement from Kerala and Tamil Nadu at reasonable price and the dependency on import has reduced to that extent. The company is trying to utilise the capacities for ice cream in Thalayuthu and Vedagiri ice cream units and once they are able to improve the volume, the Dairy division will generate higher revenue. 56 Nirmala College of Information Technology, Chalakudy Management Project DEPARTMENTS MARKETING DEPARTMENT In the department of marketing, are controlled and supervised by marketing manager in the consultation with general manager. This marketing department performs a lot of activities viz. pricing selection of suitable distribution policies & some promotional policies such as price discounts, gifts etc … STRUCTURE OF MARKETING DEPARTMENT Marketing Manager Assistant Manager Sales executive Office assistant 57 Nirmala College of Information Technology, Chalakudy Management Project FINANCE DEPARTMENT The success of every organization is good and efficient finance department. KSE limited has a good financial department & they allocate all purchasing efficiently that lead to improve market share & increase profit. STUCTURE OF FINANCE DEPARTMENT Company secretary -cumgeneral manager Assistant Manager Executive officer Office assistant Clerk 58 Nirmala College of Information Technology, Chalakudy Management Project PURCHASE DEPARTMENT The purchase department consists of the manager, assistants & store keeper .They is responsible for all the purchases. Including raw materials for production, office stationeries & other maintenance related purchase in KSE limited. The purchase department will have to convince of requirements before the articles & procured. This policy ensures less revenue loss due to unnecessary & unplanned purchase activities. STRUCTURE OF PURCHASE DEPARTMENT Purchase Manager Executive officer Officer Office assistant Clerk 59 Nirmala College of Information Technology, Chalakudy Management Project FUNCTION OF PURCHASE DEPARTMENT What to purchase? When to purchase? Where to purchase? How much to purchase? At what price to purchase? PRODUCTION DEPARTMENT Production department are heard by plant supervisor. The main function of production department in manufacturing of various types of milk products, which is having better demand from the customers both from Kerala and national market. PRODUCTION FUNCTION Improving volume of production Controlling idle time of workers Minimizing work rates 60 Nirmala College of Information Technology, Chalakudy Management Project STRUCTURE OF PRODUCTION DEPARTMENT Production manager Assistant Manager Stores officer Store supervisor Store clerk Worker 61 Nirmala College of Information Technology, Chalakudy Management Project 1. EXPERIENCE WITH KS MILK DEALERSHIP TABLE NO: 1 Options No. of respondents percentage Less than 5 years 5 4 5 years 15 12 5-10 years 50 38 More than 10 years 60 46 Total 130 100 FIGURE NO: 1 4% 12% Less than 5 years 5 years 46% 5-10 years 38% More than 10 years 62 Nirmala College of Information Technology, Chalakudy Management Project INTERPRETATION From the above table and diagram it is clear that out of 130 dealers 46% of dealers are having more than 10years of experience ,38% of dealers have upto 5-10years of experience with KS milk,12% have only 5 years of experience and 4 % have upto less than 5 years of experience . 2. OUTLETS TABLE NO: 2 Options No. of respondents percentage Milk booth - - Bakery 70 54 Provisional store 30 23 General store 30 23 Total 130 100 FIGURE NO: 2 Chart Title Milk booth Bakery 23% Provisional store 54% General store 23% 63 Nirmala College of Information Technology, Chalakudy Management Project INTERPRETATION From the above table and diagram it is clear that among the 130 dealers 54%are bakeries ,the other 23% are provisional and general store . No milk booth is available as dealers of KS milk. 3. REASON FOR PURCHASING FROM KS TABLE NO: 3 Options No. of respondents percentage More commission 15 12 Customers request 20 15 Good quality 35 27 All the above 60 46 Total 130 100 FIGURE NO: 3 64 Nirmala College of Information Technology, Chalakudy Management Project Chart Title More commission 12% Customers request Good quality 15% 46% All the above 27% INTERPRETATION The above table and diagram shows the reason for selling KS milk .Majority of dealers said that they sell it due to 3 reasons they are more commission, good quality and customers request. The next 27% of dealers told that they sell KS milk due to the good quality of the product. 4. OPINION ABOUT THE COMMISSION FROM THE COMPANY TABLE NO: 4 Options No. of respondents percentage Highly satisfied 15 12 Satisfied 115 88 Dissatisfied - - Highly dissatisfied - - Total 130 100 65 Nirmala College of Information Technology, Chalakudy Management Project FIGURE NO: 4 Chart Title Highly satisfied 12% Satisfied Dissatisfied Highly dissatisfied 88% INTERPRETATION From the above table and diagram it is clear that majority of dealers that is 88% are just satisfied with the commission provided by the company and only 12% of dealers are highly satisfied with the commission provided by the company .The commission provided by the company is 70ps for 1 packet of milk. 5. CUSTOMERS SATISFACTION TABLE NO: 5 Options No. of respondents percentage Yes 130 100 No - - Total 130 100 66 Nirmala College of Information Technology, Chalakudy Management Project FIGURE NO: 5 Chart Title Options Yes No INTERPRETATION From the above table and diagram it is clear that the customers of KS milk are highly satisfied with the product. All the 130 dealers in Trissur town said that customers buy this product due to its quality and there is a high sales movement for KS milk compared to other brands of milk. 6. OTHER BRANDS THAT DEALERS DEAL TABLE NO:6 Options No. of respondents percentage Milma 54 41 PDDP 10 8 Both 25 19 67 Nirmala College of Information Technology, Chalakudy Management Project others 41 32 Total 130 100 FIGURE NO: 6 Milma 32% 42% PDDP Both 19% others 8% INTERPRETATION The above table and diagram it is clear that majority of dealers deal with Milma because beside KS milk Milma is the another brand of milk that high sales movement in the market. PDDP does not have that much sales movement so only 8% of dealers deal with PDDP. 7. OPINION ABOUT THE PRICE OF KS MILK TABLE NO: 7 Options No. of respondents percentage Very good 46 35 Good 53 41 68 Nirmala College of Information Technology, Chalakudy Management Project Satisfactory 31 24 Poor - - Total 130 100 FIGURE NO: 7 24% Very good 35% Good Satisfactory Poor 41% INTERPRETATION The above table and diagram shows the idea of dealers about the price of KS milk. Among the 130 dealers 41%of dealers reported that the price of the product is good they said that because of the quality of the product .35% of dealers said that the price of the product is low so that there is no problem to deal with the product. 8. SALE OF MILK PER DAY TABLE NO: 8 Options No. of respondents percentage 20 packets - - 69 Nirmala College of Information Technology, Chalakudy Management Project 20-40packets 5 4 40-60packets 24 18 More than 60 packets 101 78 Total 130 100 FIGURE NO: 8 4% 20 packets 18% 20-40packets 40-60packets More than 60 packets 78% INTERPRETATION The above table and diagram depicts the sale of the product per day. Among the 130 dealers 78% of dealers sell more than 60 packets per day that may be upto 200 or 500 packets . 9. REASON TO BE A DEALER OF KS MILK TABLE NO:9 Options No. of respondents percentage 70 Nirmala College of Information Technology, Chalakudy Management Project Promotional scheme - - Quality 49 38 Company’s policy 37 28 margin 44 34 Total 130 100 FIGURE NO: 9 34% 38% Promotional scheme Quality Company’s policy margin 28% INTERPRETATION The above table and diagram is talking about the main factors enabling the dealers to be the KS milk dealers ,most of the dealers prefer on quality to be first factor. About38% of the dealers are dealing KS milk products for its quality and 28% are for company policies. The rest 34 % of the dealers voted for margin. Though the dealers prefer quality and margin as a main factor. 10. OPINION ABOUT CREDIT PERIOD TABLE NO: 10 71 Nirmala College of Information Technology, Chalakudy Management Project Options No. of respondents percentage Very good 9 7 Good - - Satisfactory - - poor 121 93 Total 130 100 FIGURE NO: 10 7% Very good Good Satisfactory poor 93% INTERPRETATION The above table and diagram shows degree of dealers satisfaction on the credit period allowed by the company to them .Most of the dealers rated it as poor because the company only provide credit to the dealers who make bulk purchases. 11. HOME DELIVERY SERVICE TABLE NO: 11 72 Nirmala College of Information Technology, Chalakudy Management Project Options No. of respondents percentage Yes 61 47 No 69 53 Total 130 100 FIGURE NO: 11 53% 47% Yes No INTERPRETATION The above table and diagram shows the home delivery services provided by the dealers. About 53% of dealers does not provide home delivery services. The rest 47% of dealers provide home delivery .Bakeries are the main outlets which provide home delivery services. 12. CUSTOMERS PREFERENCE OTHER THAN KS MILK TABLE NO: 12 73 Nirmala College of Information Technology, Chalakudy Management Project Options No. of respondents percentage Milma 54 42 PDDP 12 9 Sakhti 14 11 Others 50 38 Total 130 100 FIGURE NO: 12 Milma 38% 42% PDDP Sakhti Others 11% 9% INTERPRETATION The above table and diagram shows the preferences of customers other than KS milk.42% of dealers responded that majority of customers prefer Milma .38% dealers said that the customers prefer other brands rather than Milma, PDDP and Sakhti. 13. VARIETIES OF KS MILK PRODUCTS SOLD BY DEALERS 74 Nirmala College of Information Technology, Chalakudy Management Project TABLE NO: 13 Options No. of respondents percentage KS butter milk 11 8 KS curd 54 42 KS ghee 20 15 All the above 45 35 Total 130 100 FIGURE NO: 13 8% KS butter milk 35% KS curd 42% KS ghee All the above 15% INTERPRETATION The above table and diagram shows that majority of dealers sell KS curd because of customers request and it has a high sale volume than the other products.35% of dealers sell all the KS milk products .Only a small portion sell butter milk and ghee. 14. SALES MOVEMENT OF KS MILK 75 Nirmala College of Information Technology, Chalakudy Management Project TABLE NO: 14 Options No. of respondents percentage Excellent 37 29 Very good 45 35 Good 24 18 Average 24 18 Total 130 100 FIGURE NO: 14 18% 28% Excellent Very good 18% Good Average 35% INTERPRETATION The above table and diagram depicts the sales movement of KS milk according to the dealers .Majority of dealers said that the sales movement of the product is very good. Because of the quality and goodwill of the company customers prefer KS milk more so the sales is fast. 76 Nirmala College of Information Technology, Chalakudy Management Project 15. ATTRIBUTE THAT INFLUENCE THE CUSTOMERS TABLE NO: 15 Options No. of respondents percentage Price 22 17 Quality 42 32 Availability 26 20 Brand image 40 31 Total 130 100 FIGURE NO: 15 31% 17% Price Quality 32% 20% Availability Brand image INTERPRETATION The above table and diagram shows the attributes that influence the customers to buy KS milk. Majority of the dealers said that the customers buy the product due to the quality of the product.31% of dealers reported that the customers prefer the product due to the brand image .The rest 20% and 17% of dealers said that the customers prefer it because of the availability and price. 77 Nirmala College of Information Technology, Chalakudy Management Project 16. PROBLEM FACED BY DEALER TABLE NO: 16 Options No. of respondents percentage Bad packaging - - No prompt delivery - - Insufficient delivery - - No problem 130 100 Total 130 100 FIGURE NO: 16 Bad packaging No prompt delivery Insufficient delivery No problem 100% INTERPRETATION The above table and diagram shows the problems faced by the dealers .The 130 dealers in Trissur town said that they don’t face any problem with the dealership of the company. 78 Nirmala College of Information Technology, Chalakudy Management Project 17. SERVICES EXPECTED BY THE DEALER TABLE NO: 17 Options No. of respondents percentage Sales follow up - - After sales service 30 23 Credict facility 35 27 Seasonal offers 65 50 Total 130 100 FIGURE NO: 17 Chart Title Sales follow up 23% 50% After sales services Credict facility Seasonal offers 27% INTERPRETATION The above table and diagram shows the services expected by the dealers. About 50% of dealers expect more seasonal offers during the monsoon season when the availability of milk is low. The other 23%and 27% of dealers expect services and credit facilities. 79 Nirmala College of Information Technology, Chalakudy Management Project 18. TIMELY SUPPLY TABLE NO: 18 Options No. of respondents percentage Yes 130 100 No - - Total 130 100 FIGURE NO: 18 Yes No 100% INTERPRETATION The above table and diagram reveals the timely supply of the product to the dealers. Here all the dealers are satisfied with the timely supply of the product. All the dealers receive the product at the expected time and quantity. 80 Nirmala College of Information Technology, Chalakudy Management Project 19. OPINION ABOUT THE PROMOTIONAL ACTIVITIES TABLE NO: 19 Options No. of respondents percentage Highly satisfied 11 8 Satisfied 119 92 Dissatisfied - - Highly dissatisfied - - Total 130 100 FIGURE NO: 19 8% Highly satisfied Satisfied Dissatisfied Highly dissatisfied 92% INTERPRETATION The above table and diagram shows that 92% of dealers are just satisfied with the promotional activities. According to their opinion the promotional activities are still to be improved. 81 Nirmala College of Information Technology, Chalakudy Management Project 20. TIME OF SALE TABLE NO: 20 Options No. of respondents percentage Morning 45 35 Evening 36 27 Both times 30 23 No specific time 19 15 Total 130 100 FIGURE NO: 20 15% 35% 23% Morning Evening Both times No specific time 28% INTERPRETATION The above table and diagram shows the time of sale made by the dealers.34% of dealers said that the sale is made in the morning hours because everyone need milk 82 Nirmala College of Information Technology, Chalakudy Management Project at the specific of time.27% of dealers reported that they got the sale at evening time as Trissur is a busy town area every one buy milk at that time for their convenience. 21. STORAGE FACILITY TABLE NO: 21 Options No. of respondents percentage Yes 130 100 No - - Total 130 100 FIGURE NO: 21 Yes No 100% INTERPRETATION 83 Nirmala College of Information Technology, Chalakudy Management Project The above table and diagram reveals the storage facility of the dealers .All the dealers have their own storage facility as milk is a perishable food item. Most of the dealers have small refrigerators for storage. 22. OPINION ABOUT THE SERVICES PROVIDED BY THE COMPANY TABLE NO: 22 Options No. of respondents percentage Highly satisfied 30 23 Satisfied 100 77 Dissatisfied - - Highly dissatisfied - - Total 130 100 FIGURE NO: 22 84 Nirmala College of Information Technology, Chalakudy Management Project 23% Highly satisfied Satisfied Dissatisfied Highly dissatisfied 77% INTERPRETATION The above table and diagram reveals the satisfactory level of the dealers about the services provided by the company. Majority of the dealers are satisfied with the services provided by the company .Only 23% of dealers are highly satisfied with the services. 23. OPINION ABOUT PACKAGING OF THE PRODUCT TABLE NO: 23 Options No. of respondents percentage Highly satisfied 130 100 Satisfied - - Dissatisfied - - Highly dissatisfied - - Total 130 100 85 Nirmala College of Information Technology, Chalakudy Management Project FIGURE NO: 23 Highly satisfied Satisfied Dissatisfied Highly dissatisfied 100% INTERPRETATION The above table and diagram reveals the packaging of the product .All the 130 dealers are highly satisfied with the packaging of the product because the material used for the packing is of high quality .The packets does not show any type of damages. 24. DEALERS ATITUDE TOWARDS SALES PROMOTIONAL ACTIVITIES TABLE NO: 24 Options No. of respondents percentage Free samples - - Coupons - - P.O.P displays 23 18 86 Nirmala College of Information Technology, Chalakudy Management Project None of the above 107 82 Total 130 100 FIGURE NO: 24 18% Free samples Coupons P.O.P displays None of the above 82% INTERPRETATION The above table and diagram reveals the sales promotional activities of the company. Only a small portion of dealers said that the company uses Point of Purchase displays for sales promotion. Majority of dealers said that there is no such sales promotion is conducted by the company. 25. DEALERS MEETING TABLE NO: 25 Options No. of respondents percentage Yes - - No 130 100 Total 130 100 87 Nirmala College of Information Technology, Chalakudy Management Project FIGURE NO: 25 Yes No 100% INTERPRETATION The above table and diagram reveal about the dealers meeting conducted by the company. All the dealers reported that the company does not conduct dealers meeting. FINDINGS 1. The dealers have considerable experience and their answers are valued much and their statements were very much helpful for the analysis. 2. The quality of the K.S .milk is found to be satisfied by most of the dealers selling this brand. 3. The main outlets of company are bakeries. 88 Nirmala College of Information Technology, Chalakudy Management Project 4. Most of the dealers are just satisfied with the commission provided by the company. 5. Majority of the dealers feel that supply facility as excellent. 6. The sale of KS milk per day is excellent. The dealers sell more than 150 packets of milk per day. 7. Most of the dealers feel that the service provided by the firm is average. 8. Most of the dealers feel that the price of milk is good. 9. KS milk is offering credit facility but most of the dealers are not satisfied. 10. Quality and margin are the main factors which enable the dealers to be dealer of KS milk. 11. All the dealers have their own storage facility. 12. Among the different KS milk products KS curd have high sales. 13. Dealers does not face any problem with the company. 14. Dealers meetings are not conducted by the company so the dealers find it difficult to express their views 15. Packaging of the product is excellent. 16. Customers prefer this product due to the high quality and brand image. 17. Sales promotional activities provided by the company is not enough. 18. Dealers expect more seasonal offers and services from the side of the company. 19. Milma is the main competitor of KS milk. 20. The supply of the product is timely. 21. 77% of dealers are just satisfied with the services provided by the company. Services provided by the company are yet to be improved. SUGGESTIONS 1. Try to increase the amount of sales promotion activities such as advertisements. 2. Try to provide better service and schemes. The company can provide bonus to the dealers at the time of festivals. 3. Step should be taken to make KS milk available at all places. 89 Nirmala College of Information Technology, Chalakudy Management Project 4. Try introducing new product into the market. They can introduce flavored milk in the market which may attract children .They can introduce cheese and butter into the market. 5. Dealers meeting should be conducted yearly. 6. They should try to introduce other types of packing. They can introduce bottle milks so that it may be more convenient in handling. 7. The company should provide credit facilities to the dealers. CONCLUSION The study has helped the researcher a great deal in getting through knowledge of the marketing and system of distribution, competition and general 90 Nirmala College of Information Technology, Chalakudy Management Project trends .the study has been useful to acquire a practical experience a part from the theoretical knowledge. The study certainly proved that KS Milk can improve their market share. Though KS Milk enjoys the brand image, it certainly has to work up on the service and other aspects so as to remain in that position. Even though KS Milk has a certain negative aspects. It still can emerge as the top brand with certain adjustment in the existing policies and strategies. BIBLIOGRAPHY BOOKS: 91 Nirmala College of Information Technology, Chalakudy Management Project Author : C.R KOTHARI Book : Research Methodology, methods and Techniques Publisher : New Age International (p) ltd Publisher Second Revised Edition: 2004 JOURNALS : Annul report WEBSITES Department of the company; Date : 17/07/2012 Time : 10.15 am http://www.google.com Date : 1/8/2012 Time : 10.20 am http://www.kselimited.com Date : 1/8/20/12 Time : 11.00 am QUESTIONNAIRE 92 Nirmala College of Information Technology, Chalakudy Management Project 1. How long have you been dealing with KS products? Less than 5year 5years 5-10years More than 10 years 2. What business do you do? Milk booth Bakery Provisional store General store 3. What is the reason for purchasing from KS? More commission Good quality Customers request All the above 4. Are you satisfied with the commission from the side of the company? Highly satisfied Dissatisfied Satisfied Highly Dissatisfied 5. Do you think that the customers are satisfied with the KS milk products? Yes No 6. Which brand of milk do you sell other than KS? Milma PDDP Both Others 7. What do you feel about the price of KS milk products? Very good Good 93 Nirmala College of Information Technology, Chalakudy Management Project Satisfactory Poor 8. How much quantity of milk do you sell per day? 20 packets 20-40 packets 40-60 packets More than 60 packets 9. Which factor enables you to be the dealer of KS milk products? Promotional scheme Quality Company’s policy Margin 10. What do you feel about the credit period given by the company? Very good Good Satisfactory Poor 11. Do you provide home delivery service? Yes No 12. Which brand of milk do customers prefer more than KS? Milma Sakthi PDDP Others 13. What are the different varieties of KS milk that you sell? KS butter milk KS curd KS ghee All of them 14. How do you rate the sales movement of KS milk? 94 Nirmala College of Information Technology, Chalakudy Management Project Excellent Very good Good Average 15. What is the most important attribute that influence the customers? Price Quality Availability Brand image 16. What type of problem do you face in the delivery and purchase of KS milk? Bad packing No prompt delivery Insufficient delivery No problem 17. What are the services that you expect from the company? Sales follow up After Sales Services Credit facility Seasonal offers 18. Whether the expected quantity of KS products is supplied to you in time? Yes No 19. What do you feel about the promotional activities provided by the company? Highly satisfied Satisfied Dissatisfied Highly Dissatisfied 20. During which period of time do customers prefer the product? Morning Both times Evening No specific time 95 Nirmala College of Information Technology, Chalakudy Management Project 21. Do you have own storage facilities? Yes No 22. Are you satisfied with the services provided by the company to the dealers? Highly satisfied Satisfied Dissatisfied Highly Dissatisfied 23. Are you satisfied with the packaging of KS milk? Highly satisfied Satisfied Dissatisfied Highly Dissatisfied 24. Do you know which sales promotional activities does the company undertake for KS milk? Free samples Coupons P.O.P displays None of the above 25. Is there dealers meeting conducted by the company? Yes No THANK YOU 96 Nirmala College of Information Technology, Chalakudy