A Project Report on consumer awareness about NANDINI milk and milk products, and impact of promotio by Babasab Patil

Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

INTRODUCTION 1.1 Theme Dharwad Milk Union, a Subsidiary of Karnataka Milk Federation, is the oldest company in the North Karnataka region in the Packaged Milk and Milk Products segment. The company was the leader in this segment with its various products under the brand of NANDINI. But now with the increasing competitors from private sector in Packaged Milk and Milk Products industry the company has failed to increase its market. The company has made the attempt to increase the sales through many promotional activities like advertisements through various Medias, and Awareness Campaigns. Through these promotional activities the company wanted to re-capture the customers who are shifted from NANDINI to other private branded products, and also wants capture those consumers who still depending on the un-organized suppliers like Dabba Milkmen etc… to serve their need of milk and milk products. So now the company wants to know the consumer awareness about NANDINI Milk and Milk products and impact of promotional activities on creating the awareness in the minds of customers. And also the company wants to know what sort of activities to be undertaken to attract the customers. 1.2 Brief History India has a rich tradition in dairying since the time of Lord Krishna. Dairying has been inherent in Indian culture, for centuries. Milk and milk products have always been an integral part of our consumption habits. In the vast field of animal husbandry, the contribution of dairying has been most significant, in terms of employment, as well as income generation. In post-independence India, co-operative dairying has been one of our major success stories, having a profound impact on socio-economic development of rural areas. Today, India is the largest milk producer in the world with record production of 91.5 million tons. India stands first in world milk production with a share of about 14 per cent in world milk production. Milk has achieved unique status in terms of its output value exceeding Rs. 1,00,000 crores and has made rapid strides both in terms of number of milk producers and quantity of milk produced. The milk production in India was 17 million tons in 1950-51. This could meet only 25 per cent of the domestic demand; the remaining 75 per cent of the demand was met by importing the milk solids. The production was stagnant for two decades till 1970, with annual growth rate of milk production of one per cent. Thanks to the vision and foresight of Dr. Kurien, in 1970, NDDB launched “Operation Flood Program” with objective of ending milk famine in the country and turning farmers’ co-operatives into powerful catalyst for transforming India into major milk producer in the world. Further, by providing milk producers remunerative prices round the year, milk production in India touched 74 million tons since 1997. By the year 2000, India tops to emerge as the largest milk producer – by surpassing the USA – with Page 1 Babasabpatilfreepptmba.com

Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness an estimated production of 86 million tons. This is as a result of India’s “White Revolution” in milk production. The first phase of “Operation Flood Program” was between 1970 and 1981 and it laid the foundation for modern dairy industry in India. There was a liable self-sustaining growth of producer’s controlled dairy co-operatives. The second phase was in action during 1981 to 1985, which established 136 milk sheds and captured markets in 290 cities and provided 4.9 billion finance. The operation flood has completed third phase on 31 march, 1994 by capturing 500 cities with population target of 300 million customers and at present fourth phase is in operation. When the third phase was over, the following benefits had reached the small dairy farmers. 1. Sustained increase in production raising the per capita availability of milk to nearly 220 grams. 2. Dependence on commercial imports of milk powder ended. 3. Marketing mechanism improved and providing assured market outlet for milk producers and quality milk for consumers. 4. The quality of milk animals improved. 1.3 Company Profile KARNATAKA MILK FEDERATION 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. 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 30 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 ensure supply of quality germ plasma, bull breeding farm and frozen semen bank are also available.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the apex Body in Karnataka representing Dairy Cooperatives. It is the third largest dairy co-operative amongst the dairy cooperatives in the country. DHARWAD MILK UNION Vision: • • • • • • • •

Total quality Honesty Discipline Cleanliness Transparency Sincerity and dedication Co-operation free of politics Respecting each other's, opinions, ideas & feelings.

Mission: Dharwad Milk Union is committed to provide maximum possible price for the milk supplied by its members and provide necessary inputs to enhance milk production while ensuring economic viability of the Union and is also committed to provide quality milk products to consumers and emerge as one of the top most milk union of the co-operative dairy industry in the country. Dharwad milk union A 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 Uttara 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. Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was established under co-operative Act on 3-3-1986 at Dharwad. And Gadag, Haveri, Uttar Canara and Dharwad come under its operation. Further in 1988, the Riapur 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.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness DMU formed 551 milk producer's co-operative societies in Dharwad, Gadag, Haveri and Uttar Kannada districts. The production capacity of DMU is 2 lack liters of milk per day and also has the capacity to produce 12tones of milk powder, 10tones of butter, and 6tones of ghee per day. DMU is collecting 70 thousand 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. Establishment: The Dharwad Milk Union is one Co-operative society among the 13 establishments, 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; next to the National Highway-4. Dharwad. Nature of business carried: The Nature of Dharwad Milk Union is that procuring the Milk from societies. And that milk will be brought through tankers for various chilling centers those, which are near and convenient to various societies. The Union processes the milk and market in urban area through various agents. The Union is providing services to milk producers with technical inputs like veterinary services, seeds, fodder etc. and also by giving training to farmer and induction program. The Union also owns and operates the dairy plant cattle feed plant; fodder and bull mother forms, semen collection station, and herd quarter center for animal husbandry activities. The Union also takes research, development and also other promotional activities for the overall benefit of the farmer. The Union providing various product to market like toned milk, standard milk, full creamed milk, double toned milk, homogeneous standard milk, along with cheese curd, ghee, pedha. FUNCTIONS OF DMU: • • • • •

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 aid seeds, etc., to the villagers. To see that the DCS's are carrying out their activities properly and in an efficient Page 4

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness • •

manner. To see that the milk is brought from DCS's to the chilling centers in the arranged time. To look the accounts of the DCS's supervise the purchase process and market the milk and milk products.

OBJECTIVES OF DMU: • • • • • •

Providing hygienic and good quality of milk to the consumers. To build the economic strength of the milk producers in villagers. To eliminate middlemen's in the business so that the milk producers receive their appropriate share of bread. To educate the villagers 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.

CHAPTER II

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

Literature Review

LITERATURE REVIEW 2.1 Milk Industry. The highest milk producer in the entire globe – India boasts of that status. India is otherwise known as the ‘Oyster’ of the global dairy industry, with opportunities galore to the entrepreneurs globally. Anyone might want to capitalize on the largest and fastest growing milk and milk products' market. The dairy industry in India has been witnessing rapid growth. The liberalized economy provides more opportunities for MNCs and foreign investors to release the full potential of this industry.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness The main aim of the Indian dairy industry is only to better manage the national resources to enhance milk production and upgrade milk processing using innovative technologies. Potential for investment in the dairy industry some areas of Indian dairy industry can be toned up by the evocation of differentiated technologies and equipment from overseas. These include:

1. Raw milk handling: The raw milk handling needs to be elevated in terms of physicochemical and microbiological properties of the milk in a combined manner. The use of clarification and bactofugation in raw milk processing can aid better the quality of the milk products. 2. Milk processing: Better operational ratios are required to amend the yields and abridge wastage, lessen fat/protein losses during processing, control production costs, save energy and broaden shelf life. 3. Packaging: Another area that can be improved is the range of packing machines for the manufacture of butter, cheese and alike. Better packaging can assist in retaining the nutritive value of products packed and thus broaden the shelf life. A cold chain distribution system is required for proper storage and transfer of dairy products. 4. Value-added products: There's vast scope for value-added products like desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars and sherbets to capture the dairy market in India. The Indian dairy industry has aimed at better management of the national resources to enhance milk production and upgrade milk processing involving new innovative technologies. Multinational dairy giants can also make their foray in the Indian dairy market in this challenging scenario and create a win-win situation for both.

2.2 KMF Evolution Karnataka milk federation which is most popular as KMF, evolved itself as a premier and most profitable dairy farmers' organization in the state of Karnataka. As an agency in 1975 to implement the world bank aided dairy development projects, Karnataka Dairy Development Corporation (KDDC) was formed, the company grew itself fast and as it spreads the wings of new found rural economic activity - dairying all over the state, the genesis of apex cooperative body took the shape of KMF in 1983 encompassing entire state with 13 district co-operative milk unions executing the various parameters of dairy activity - organization of dairy co-operatives, milk routes, veterinary services, procurement of milk in two shifts of the day, chilling, processing of milk, distribution of milk and also establishment of cattle feed plants, NANDINI sperm station, liquid nitrogen supply, training centres - as its main stay.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness The entire system was reconstructed on the model of now well known `Anand' pattern dairy cooperative societies. Eight southern districts of Karnataka was considered initially with a target of organizing 1800 dairy co-operative societies, four milk unions and processing facilities were set up to the tune of 6.5 Lakh per day by 1984. Under operation flood - ii &iii, project which started in 1984 & 1987 covered the remaining parts of Karnataka. Thirteen milk unions are organized in 175 talukas of all 20 districts then and the field work was extended by organizing more dairy cooperative societies. The processing facilities i.e. chilling centres, milk dairies and powder plants were transferred in phases to the administrative control of respective cooperative milk unions and the activities continued to be implemented by these district organisations. Additional processing facilities were created & existing facilities augmented every decade with the help of govt. Zilla Panchayat to handle ever increasing milk procurement without declaring milk holidays. 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. 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 ensure supply of quality germ plasma, bull breeding farm and frozen semen bank are also available. Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the apex Body in Karnataka representing Dairy Cooperatives. It is the third largest dairy co-operative amongst the dairy cooperatives in the country. 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

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness 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.

2.3 Promotional activities and awareness in Milk industry

Articles published in Newspapers about promotional activities and awareness. Headed in DECCAN HERALD, Friday 18, 2005 Campaign launched to create awareness on milk products SHIMOGA, DHNS: NANDINI milk has maintained very high standards of quality even while facing very stiff competition from private milk dairies, Legislator K S Eshwarappa said. He was speaking after inaugurating the NANDINI milk consumers' awareness campaign launched by the Shimoga Milk Union Limited (Shimul) and Stree Shakthi meeting in Shimoga on Thursday. Shimul is collecting 1.5 lakh liters of milk everyday from Shimoga, Davanagere and Chitradurga districts. Around 1 lakh families are dependent on this business and Shimul has proved itself to be a lifeline to all these families, he lauded. He suggested the utilization of Stree Shakti groups for the campaigning for NANDINI milk products. A detailed plan should be drawn up for increasing sale of NANDINI milk after holding consultations with Stree Shakthi groups. The groups which sell the maximum quantity of NANDINI milk should be given a commission of Rs 0.75 per litre, he suggested and added that he was ready to speak to the chairman of Shimul and to the minister Revanna in this regard. Appreciated Expressing appreciation in the manner in which the Stree Shakthi groups had strengthened themselves, Mr Eshwarappa said that women had become economically and socially strong through Stree Shakti groups. Consumersâ&#x20AC;&#x2122; Forum president K M S Chandrashekaraiah, Hubli NDB State Director V V Krishnakumar, KMF Director H K Prakash A A Kadar and Lecturer Kiran Desai were also present.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness In his introductory remarks, Executive Director of Shimul K L Gajendran said around 1 lakh farmers are selling milk to Shimul every day. Shimul sells 95,000 liters of milk and 5,000 liters of curds every day. He urged consumers not to be cheated by low quality milk and to repose their faith in NANDINI. Hindu Newspaper Inaugural session of three-day national conference on “Indian dairying – productivity and food safety” organized by the Indian Dairy Association. Hike in NANDINI Milk prices The Karnataka Milk Federation on Wednesday 7-4-2010 declared a hike in milk prices across the Karnataka State from Rs.3 to Rs.4 per litre. The new prices will come into effect from Thursday 8-4-2010.

CHAPTER III Page 10 Babasabpatilfreepptmba.com

Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

Organizational Study

ORGANISATION STUDY 3.1 ORGANIZATION CHART

Presidents

Director (Elected-8)

Directors

Director (Ex-officer-5)

(Nominated-3)

Managing director

P&I Production Finance Babasabpatilfreepptmba.com Extension Deputy Deputy Q.C Deputy A/cs Officer Manager Manager Officer Manager Assistant Helper Workers Assistant Helper

Admin Deputy Assistant Manager Helper

Security Sr.Jr. Supervisor Supervisor Guards

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

3.2 COMPANY PROFILE

COMPANY NAME

: Dharwad Milk Union Lakkammanahalli Industrial Area. P.B Road Dharwad-580004

NATURE OF BUSINESS

: Mfg / Service / Co-operative Unit.

TYPE OF OWNERSHIP

: Co-Operative Unit.

TEL-NO

: 0836-2467643, 2461876, 2468380.

RAW MATERIAL

: Milk 84,000 Liters/day Water 5 to 6 Lakh liters/day Coal 4 to 5 tone.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness CAPACITY OF PLANT

FINISHED PRODUCTS

: 1, 20,000 Literâ&#x20AC;&#x2122;s / Day 12 Tones milk powder, 10 Tones Butter, 6 Tones Ghee.

: Milk, Butter, Ghee, Curd, Pedha, Milk powder, Lassi, Khova.

TOTAL INVEST

: Rs.7 Crore

TOTAL SOCIETIES AT VILLAGE LEVEL

: 500 Societies

3.3 DEPARTMENTS OF DMU: a) Procurement and Input Department b) Production Department c) Marketing Department d) Finance Department e) Administration Department

a) PROCURMENT AND INPUT DEPARTMENT The Union carries on procurement by setting up co-operative societies at village level. Later milk is collected in the Chilling Center. Milk collected from the milk center, is first tested. There is 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 150 liters per day, a society is formed. Further 10 promoters 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 4 degree 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

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness different areas throughout the year. DMU is making a minimum RS.7.50 for cow milk and Rs. 10 for buffalo milk. Sometimes price may vary with quality. Procurement of milk varies from season to during flesh season i.e., from September to late December the milk productivity is high and during summer the milk productivity will come down. The department also provides facilities that help in enhancing more productivity. 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.

ď&#x192;&#x2DC; 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 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 Rs.50,000 can be made by Purchase Department. If the purchase amount is more than Rs.50,000, then the approval of Managing Director is needed.

b) PRODUCTION DEPARTMENT The main objective of this department is to follow up production schedule as per plan and to maintain close and co-ordinate relationship with other department and ensures to upgrade the technical efficiency of production. Milk, as it is highly perishable product has to process immediately to avoid spoilage milk with respect to its flavor, texture and taste. Production department is well equipped and has various types of highly sophisticated machines imported from Sweden and Denmark. Once the milk is received from P & I department, it is first weighed with the help of weighing bowl. Later, it is poured in dump tank. Sample testing is made through lactometer reading and other tests. The fat and SNF content of each sample of milk is accessed the cow and buffalo's milk are separately received and sent to the production section separately through two different stainless steel pipes. Later, the raw milk is passed through plate chiller of variable capacity where it is cooled up to 4-5 degrees Celsius. This cooled raw material is further stored in a silo of 30,000 liters capacity. Chilling Page 14 Babasabpatilfreepptmba.com

Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness This is done to avoid the growth of microorganisms, which are responsible for spoilage of milk and bitter taste. The milk, which is stored in silos, is pumped through pipeline to the balance tank, which helps to maintain the steady speed flow of milk in the Pasteurization machine. In, DMU, there are 2 milk Pasteurization machine and 1 Cream Pasteurization machine. Pasteurization Pasteurization is a process where milk is heated to high temperature and cooled instantly, to destroy any microorganism. The pasteurized milk will stored in Pasteurized milk silos and then sent to pre-packing section. Packing is done in 500ml and 1000ml and stored in cold storage at 7°.

 Quality control department In DMU, at every stage, care is taken to ensure that the customer gets the products, 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, which we get from chilling center. Next before standardization and the last test before packing.  Stores 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 ledger book. The inventors 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.  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 receives all the finished goods and issues 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 monthly report is submitted to the production. Marketing and Finance Department, as the products as perishable first-in-first-out method of inventory is followed.

c) FINANCE DEPARTMENT

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness 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 account 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. Pre-Audit System - done by Finance and Account Department every year. 2. Statutory System - Done by private charted accountants every year. d) MARKETTING DEPARTMENT Marketing Department is very important part of Organization marketing of milk and its products is the greatest responsibility to all the products before losing its quality. The marketing department of DMU is considerably extensive which covers the area of north GOA, UTTAR KANNADA,HUBLI, DARWAD,GADAG & HAVERI today’s market share of DMU is 23%.  Functions of marketing department. 1. To prepare the marketing plan at the beginning of every year, taking into consideration the demand, sales, production capacity and customer performance. 2. To promote milk and milk products. 3. To study competitors products and their strategies.  MARKETING STRATEGY: • Visit to all roots of distribution vehicle for connect with all agents. • Aims to conduct consumer awareness program. • Aims to conduct agents meeting. • Aims to setup more NANDINI milk parlors. • Joining to other program. • Women’s association. • Aiming to set up new sales promotional and advertising activities.

 COMPETITORS:-

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness • • • • • •

Arogya. Spurthi. Aditya Gauli. Kolhapur. Shree Krishna.

 Media of advertisement: 1. News Papers. 2. Magazines. 3. Radio. 4. Wall paint. 5. Hoardings and pamphlets.  Sales promotion: Providing discounts,incentives, to agents for increase sales.

e) ADMINISTRATION DEPARTMENT • • • •

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 Asst. Manager. Supervisory level included technical officers and supervisors. Workers levels includes labors helpers.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

3.4 NANDINI products

TONED MILK

FULL CREAM MILK

CURD

SHUBHAM MILK

HOMOGENISED TONED MILK

BUTTER

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

PEDA

MYSORE PAK

GHEE

KHOVA

3.5 Promotional activities carried over by KMF Promotional activities are the activities conducted by the company which helps the company to keep its customers informed about the product, any developments, and advancement in the products. The promotional activities help the company to place its brand or product on the top of the mind of the customers. These activities depend on the nature of the product, the target customers, the message that the company wants to convey to its customers etc KMF found the need for adopting the promotional activities in order to create awareness about the product which intern lead to increase in sales and help the company to increase its market share. The company has undertaken various promotional activities in order to increase the market share of its Milk and Milk products. Page 19 Babasabpatilfreepptmba.com

Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

The following are the major promotional activities carried over by KMF:  Advertisements • • • • • • •

Magazines Hoardings Ad boards Banners Dealer displays Television Radio

 Awareness campaigns • •

Door to door Mass campaigns

 ADVERTISEMENTS: Now a day’s advertisement is the well known, most effective, and common means of promotional activity. Advertisement is a complex form of communication that operates with objectives and strategies leading to various types of impact on consumer thoughts, feelings and actions. It is the best way to keep your customer updated and give an introduction to the new customers. Also it helps the company in keeping its brands or products on the top of the minds of the customers. KMF is making extensive use of advertisement in making the customers aware about its milk and milk products. It is using almost all the media vehicles in a proportionate manner. The company is making use of different media vehicles like Print media, electronic media, and others also The following are the media vehicles used by the company for advertising its products. •

MAGAZINES:

All the leading Kannada magazines are used by the company for advertising. Especially the weekly and monthly magazines are used to a greater extent. The special edition magazines like Deepawali edition, New year edition are also used. The main advantage of this print media is we can give bit detailed information about the products.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

•

HOARDINGS:

These are also very effective ads, where in the large hoardings with the ad message are put in the much clustered areas or on the sides of the roads. These are designed in such a way that just to remind about the brands. Usually this doesn’t give the detailed information about the brand but to remind about the brand and to show the availability.

•

NEWS PAPER INSERTIONS:

These types of advertisements are made by inserting the printed pamphlets in the leading local news papers. The target customers from a particular geographical area are selected and the printed insertions will be given to the news paper agents. The agents insert those pamphlets in the said news papers. From this the company can reach to the majority of customers who purchase that particular news paper in the whole area. This is a very economical means of advertisement. •

BANNERS:

Banners are also play important role in creating awareness. They are the one which carry the message of the product or brand and catches the eye of consumers very easily. They are so compatible in nature that you can use them at any place. For ex, the banners can be used at dealers or outlets, can be tied in a crowded area, can be used in a promotional campaigns etc... •

DEALER DISPLAYS: Page 22

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness The dealer displays are the display boards given by the company for displaying the product information. They are exclusively given to dealers only which contain lighting facility which make them clearly visible at the night also. These boards displays the products that are available and also to make separate identity for the dealers. •

TELEVISION AND RADIO:

The company also making the publicity through the most popular media i.e.: electronics media. We can see and hear the advertisement of NANDINI in radio channels and in various television channels also. At the same time KMF is doing some kitchen programs like NANDINI ADUGE MANE in private Kannada channels which are exclusively sponsored by KMF, which are also creating awareness about NANDINI products and increasing the brand image of NANDINI. •

AD BOARDS:

These are the tin boards and hard plastic boards which carry the information about individual products and of all products. There are two types of ad boards, namely Rectangle boards, cone boards. Usually these are used to advertise on public transport systems and to display at the dealer outlets. These are more informatory compared to the hoardings.

 AWARENESS CAMPAIGNS: Page 23 Babasabpatilfreepptmba.com

Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness Awareness campaigns are the campaigns organized by the KMF for promoting the NANDINI Milk and Milk products. The awareness campaigns are organized by the marketing department of the company in which the company officials try to make the consumers aware about all the products available at NANDINI counter. Also the officials try to convey the parameters which have to be looked while purchasing the milk and milk products. The consumers are given knowledge of the steps taken by KMF in order to provide them the healthier products which are processed with hygiene. â&#x20AC;˘

DOOR TO DOOR CAMPAIGNS:

The door to door awareness campaigns are done in the area where there are less existing customers are there and more potential customers are observed. Here the company officials personally visit every house and provide the information to the individual households. Generally it is carried over in such place where the customers need detailed knowledge about the products. These door to door campaigns are too much time consuming and also need to incur more expenses. But the results are more favorable. â&#x20AC;˘ MASS CAMPAIGNS: Mass campaigns are carried over where there is a crowd. In such areas the officials take opportunity to make the crowd understand about the quality of the product, the factors to be looked after while purchasing the milk products. And also educate the crowd about the product mix of NANDINI.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

CHAPTER IV Project Task

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

PROJECT TASK 4.1 Introduction Milk is the day to day need of any individual all over the world. In India the supply of Milk to the customers is done through the unorganized milkmen. After the revolution of the cooperative milk unions the milk India seen the packaged and processed Milk and Milk products. For many years the co-operative milk unions enjoyed monopoly in the market. But after the entry of private sector in this industry the competition has increased to maximum extent. Each of the players in the market has many ranges of milk products under different brands. And each and every player wishes that his brand of products must be on the top of the mind of customer. With the increasing competition, KMF is not able to raise the market share of its NANDINI branded Milk and Milk products. And the company thinks the lacking of awareness of its products may be affecting its sale. In order to increase the consumer awareness the company started many promotional activities. Now the company wants to know how much customers are aware about the product and what impact of promotional activities in creating awareness. Hence the main purpose of this revise is to find the “to assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness.” 4.2 Objectives • To assess the consumer awareness about NANDINI milk and milk products. • To analyze the impact of promotional activities on creating awareness. 4.3 Data requirement analysis Data collection methods used: • •

Primary data Secondary data

Measurement technique: • Questionnaire: • Sample size: 100 customers. • Using MS Excel:

4.4 Data collection Sample Size - 100 Page 26 Babasabpatilfreepptmba.com

Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

Data collection methods used: a) Primary data: Information was collected directly from the consumers for the project work. The data collected during the study included the data collected through questionnaire and face-to-face interview with customers. b) Secondary data: Secondary data includes data collection of information from newspapers, magazine reviews and Internet information about Processed Milk and Milk products industry.

Measurement technique: • Questionnaire: Questionnaire is a formalized instrument for collecting information directly from the respondents. During this research questionnaire was used as tool for getting information from the customers in Deshapande Nagar. • Sampling Method: The sample is selected based on non- probability sampling method. • Sample size: Sample size is 100 customers. • Using Microsoft Excel: It involves a recorded observation into spread out statement. The measurement and evaluation of data is done using Microsoft Excel for the graphical representations.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

CHAPTER V Analysis and Interpretation

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

5.1 ANALYSIS AND INTERPRETATION Keeping in view of the objectives, the data so collected from various sources and were analyzed with the help of appropriate techniques. The results of the study are presented in this chapter under the following headings. Table 1: Number of respondents aware about NANDINI Brand of Milk and Milk products. Yes

100

Figure 1.Number of respondents aware about NANDINI Brand of Milk and Milk products. InterpretationFrom the above table and graph we can observe that there is 100% brand awareness of NANDINI. Out of 100 respondents surveyed all the 100 says they are aware of NANDINI brand of milk and milk products.

Table 2: Do you purchase NANDINI Milk and Milk Products Page 29 Babasabpatilfreepptmba.com

Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

Yes

Figure 2. Do you purchase NANDINI Milk and Milk Products InterpretationOut of 100 respondents 72% purchase NANDINI Milk and Milk products. And 28% do not purchase NANDINI Milk and Milk products.

Table 2.1: Factors influencing for repetitive purchase NANDINI Milk and Milk Products

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness Yes

Total

Parameters Quality

(74%)

(26%)

(100%)

Thickness

(24%)

(76%)

(100%)

Fat content

(15%)

(85%)

(100%)

Price

(26%)

(74%)

(100%)

Taste

(22%)

(78%)

(100%)

Availability

(32%)

(68%)

(100%)

Promotional activity 04

(06%)

(94%)

(100%)

InterpretationOut of 72 respondents who purchase NANDINI Milk and Milk products 74% feel that the quality is very important. It is the main factor which influences them for repetitive purchase. Then 27% say taste, 23 % feel availability, 17% say thickness, 16% feel price which influence them in making purchase decision. Very less importance is given by the customers to fat content (15%) and promotional activities (6%).

Table 2.2: Reasons which forces for not purchasing NANDINI Milk and Milk Products.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

Parameters

Yes

Total

Quality

(07%)

(93%)

(100%)

Thickness

(07%)

(93%)

(100%)

Fat content

(11%)

(89%)

(100%)

Price

(64%)

(36%)

(100%)

Taste

(29%)

(71%)

(100%)

Availability

(32%)

(68%)

(100%)

Promotional activity

(11%)

(89%)

(100%)

InterpretationOut of 28 respondents who do not purchase NANDINI Milk and Milk products price was said as the major factor with 64% response which influence their purchase decision. Second and third importance was given to availability and taste by 32% and 29%. Quality 07%, Fat content 11%, thickness 07% and promotional activities 11% are not major factors which prevents them for not being the customers.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

Table 3: Extent of awareness about the NANDINI milk brands Product Toned milk Standard milk Shubham milk Doublle toned milk

Yes 46 60 58 15

(46%) (60%) (58%) (15%)

No 54 40 42 85

(54%) (40%) (42%) (85%)

Total 100 100 100 100

(100%) (100%) (100%) (100%)

InterpretationAs the graph depicts among the milk brands of NANDINI Standard milk carries highest of 60% of awareness, the next is Shubham Milk which carries the 58% of awareness. Toned milk is also in the queue with 46% of awareness and the Double Toned Milk is showing very poor awareness with only 15% of respondents are aware of it.

Table 4: Extent of awareness about the NANDINI milk products

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

InterpretationFrom this chart we can understand curd, ghee, pedha and butter are the products with greater awareness having 76%, 62%, 55% and 54% of awareness respectively. The pot curd, masala lassi and sweet lassi carry little less awareness as compared to the first 4 products with a response of 43%,48% and 44%. Among all products Khoa and Paneer are the 2 products with very less response of 33% and 29%.

Product Curd Pot curd Sweet lassi Masala lassi Pedha Khoa Paneer Butter Ghee

76 43 48 44 55 33 29 54 62

Yes (76%) (43%) (48%) (44%) (55%) (33%) (29%) (54%) (62%)

24 57 52 66 45 67 71 46 38

No (24%) (57%) (52%) (66%) (45%) (67%) (71%) (46%) (38%)

100 100 100 100 100 100 100 100 100

Total (100%) (100%) (100%) (100%) (100%) (100%) (100%) (100%) (100%)

Table 5: Factors looked while purchasing the Milk and Milk Products.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

Yes

Total

Parameters Quality

(74%)

(26%)

100

(100%)

Thickness

(26%)

(74%)

100

(100%)

Fat content

(17%)

(83%)

100

(100%)

Price

(26%)

(74%)

100

(100%)

Taste

(52%)

(48%)

100

(100%)

Availability

(31%)

(69%)

100

(100%)

InterpretationWhen we tried to know what are the parameters which are looked while purchasing the milk and milk products, the overall quality was given more importance with 74%. Then the next importance is given for taste with 52% response. Availability thickness and price comes next with 31%, 26% and 26% where as the fat content carries very less importance with only 17% looking for that.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

Yes

Total

Dealers

(30%)

(70%)

100

(100%)

Campaigns

(09%)

(91%)

100

(100%)

Banners

(36%)

(64%)

100

(100%)

Wall paintings

(42%)

(58%)

100

(100%)

T V ads

(55%)

(45%)

100

(100%)

Radio ads

(21%)

(79%)

100

(100%)

Magazines

(22%)

(78%)

100

(100%)

Table 6: Sources of knowing about NANDINI products.

InterpretationThe know about the products is happened to the great extent by Television 55% and wall paintings 42%. The banners and dealers also contributed in learning process by 36% and 30% respectively. 22% and 21% people came to know about the product s through magazines and radio ads, and only 9% of respondents learn about the products through campaigns which is the least.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

Table 7: Do Of observation of advertisements of NANDINI products. Frequency

Percent

Yes

96.0

4.0

Total

100

100.0

Interpretation96 % of the respondents have observed the advertisements of NANDINI Milk and Milk products. Itâ&#x20AC;&#x2122;s a very good indicator that the efforts of the company are reaching the public.

Table 8: Were they informative. Yes

80%

20%

Total

100%

Interpretation-

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness Among 96 respondents who have observed the advertisements 77 respondents (80%) feel that the ads were informatory. Only 20% feels they were not so informatory.

Media

Yes

Total

Banners

(44%)

(56%)

(100%)

Ad boards

(39%)

(61%)

(100%)

Campaigns

(12%)

(88%)

(100%)

Wall paintings

(38%)

(62%)

(100%)

Television ads

(75%)

(25%)

(100%)

Radio ads

(19.5%)

(80.5%)

(100%)

Magazines

(21%)

(79%)

(100%)

Table 9: Efficiency of media vehicles used.

InterpretationWhen we asked which of the ads were more informatory 58% felt television, 34% says Banners, 30% felt ad boards, and 29% felt wall paintings were more informatory. Radio ads, magazines, and campaigns were felt less informatory with 15%, 16% and 10% response.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

Table 10: Number of awareness campaigns attended by the respondents

Frequency Percent

11%

89%

100

100%

Yes

Total

InterpretationOnly 11 persons out of 100 have attended awareness campaigns which show the company has failed to reach to maximum number of customers through campaigns.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

Yes

Total

Freshness

(64%)

(36%)

(100%)

Hygiene in production

(36%)

(64%)

(100%)

Reliability of brand

(45%)

(55%)

(100%)

No contamination Of milk in private sector

(18%)

(82%)

(100%)

Table 11. Information got from NANDINI products in Awareness Campaigns.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

InterpretationOut of 11 customers who attended the campaigns, freshness of the product was learnt by 7 people, reliability of the NANDINI brand was learnt by 5 people, hygiene in production by 4 and no adulteration in Milk and its products by 2 respondents.

5.2 ANNEXURE Questionnaire Name: ____________________________________________ Address: ___________________________________________ 1. Do you know NANDINI Brand of Milk and Milk products? a. Yes

b. No

2. Do you purchase NANDINI Milk and Milk Products? Page 41 Babasabpatilfreepptmba.com

Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness a. Yes

b. No

If Yes 2.1 Which of the following factors made you to repetitive purchase NANDINI Milk and Milk Products: a. Quality

b. Thickness

c. Fat content

d. Price

e. Taste

f. Availability

g. Promotional activities If No 2.2

Select the following reasons due to which you are not purchasing NANDINI Milk and Milk Products: a. Quality b. Thickness c. Fat content d. Price e. Taste f. Availability g. Promotional activities

3. Which of the following Milk brands of NANDINI are known to you?

a. Toned Milk

b. Standard Milk

c. Shubham Milk

d. Double Toned Milk

Do you know any of these NANDINI milk products? a. Curd b. Pot curd c. Sweet lassi d. Butter milk e. Pedha f. Khoa g. Paneer h. Butter i. Ghee

5. What factors you look while purchasing the Milk and Milk Products? a. Quality

b. Thickness

c. Fat content

d. Price

e. Taste

f. Availability

6. How did you come to know about these NANDINI products? a. Dealers

b. Campaigns

c. Banners

d. Wall paintings

e. T.V advertisements

f. Radio Advertisements Page 42

Babasabpatilfreepptmba.com

Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness g. Magazines 7.

Have you observed the advertisements of NANDINI products? a. Yes

b. No

8. Were they informative? a. Yes

b. No

9. Which of the advertisements were more informatory? a. Banners

b. Ad Boards

c. Campaigns

d. Wall paintings

e. T.V advertisements

f. Radio Advertisements

g. Magazines 10. Have you attended any Awareness Campaigns organized by KMF? a. Yes

b. No

11. What you came to know about the NANDINI products in Awareness Campaigns? a. Freshness of the Milk b. Hygeinity in production c. Reliability of the Brand d. No contamination of milk like in Private sector Thank youâ&#x20AC;Ś..

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CHAPTER VI Findings and Suggestions

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

FINDINGS AND SUGGESTIONS 6.1 Findings •

There is 100% of the respondents are aware of NANDINI brand.

•

Out of 100 respondents 72% purchase NANDINI Milk and Milk products.

•

Out of 72 respondents who purchase NANDINI Milk and Milk products 74% feels quality is great it is the main factor which influence them for repetitive purchase. Then 27% says taste, 23 % feels availability, 17% says thickness, 16% feels price which influence them in making purchase decision. Very less importance was given by the customers to fat content (15%) and promotional activities (6%).

•

Out of 28 respondents who do not purchase NANDINI Milk and Milk products price was said as the major factor with 64% response which influence their purchase decision. Second and third importance was given to availability and taste by 32% and 29%. Quality 07%, Fat content (11%), thickness (07%) and promotional activities (11%) are not major factors which prevents them for not being the customers.

•

NANDINI Standard milk carries highest of 60% of awareness, the next is Shubham Milk which carries the 58% of awareness. Toned milk is also in the queue with 46% of awareness and the Double Toned Milk is showing very poor awareness with only 15% of respondents are aware of it.

•

Quality was given more importance with 74%, then the next importance is given for taste with 52% response. Availability ,thickness and price comes next with 31%, 26% and 26% where as the fat content carries very less importance with only 17% looking while purchasing milk and milk products.

•

The know about the products is happened to the great extent by Television 55% and wall paintings 42%. The banners and dealers also contributed in learning process by 36% and 30% respectively. 22% and 21% people came to know about the product s

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness through magazines and radio ads, and only 9% of respondents learn about the products through campaigns. •

96% of the respondents have observed the advertisements of NANDINI Milk and Milk products.

•

Among 96 respondents who have observed the advertisements, 77 respondents (80%) feel that the advertisements were informatory.

•

Among 77 respondents who felt the advertisements were informatory 58% felt television, 34% says Banners, 30% felt ad boards, and 29% felt wall paintings were more informatory. Radio ads, magazines, and campaigns were felt less informatory to about 15%,16% and 10% respectively.

•

Only 11 persons out of 100 have attended awareness campaigns.

•

Out of 11 customers who attended the campaigns, freshness of the product was learnt by 7 people, reliability of the NANDINI brand was learnt by 5 people, hygiene in production by 4 and no adulteration in Milk and its products by 2 respondents.

6.2 Suggestions • •

•

As there is very less awareness about Double toned milk the company should try to promote this product. The products like pot curd, Masala lassi, Sweet lassi has a great potential to grow in the market but the awareness is little less. So the company must take appropriate steps in order to increase the awareness. And much effort is needed to promote Khoa and Paneer. During the study I came to know that the availability of the milk products other than milk is very less. So the other milk products also made available to customer where ever the milk is available. That certain increase the sales volume of milk products. Consumers say they learnt about the product mainly through Television, wall paintings and banners. And feels television ads, banners, ad boards were more informatory. So the efforts of the company are going in a right direction. But only suggestion is to increase the frequency television ads and ad boards. Customers expect Quality, taste and availability while purchasing the milk and milk products and the company has reached the expectation in case of quality and taste but a small effort is needed to increase the availability. Awareness campaigns have failed to reach majority of customers. So the number of campaigns to be increased and to be made in such a place that the maximum number of customers are covered.

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Assess the consumer awareness about NANDINI milk and milk products, and impact of promotional activities on creating awareness

6.3 Conclusion After analyzing the data of the study I conclude that the Toned milk is also in the queue with 46% of awareness and the Double Toned Milk is showing very poor awareness with only 15% of respondents are aware of it 29% felt wall paintings were more informative. Radio ads, magazines, and campaigns were felt less informatory to about 15%, 16% and 10% respectively. Second and third importance was given to availability and taste by 32% and 29%. Quality 07%, Fat content (11%), thickness (07%) and promotional activities (11%) are not major factors which prevents them for not being the customers.

6.4 Bibliography Appendix â&#x20AC;&#x201C; A: Philip kotler- Marketing Management- 13th edition. Appendix â&#x20AC;&#x201C; B: www.kmfnandini.com

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