A Project Report on DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar DETAILED TABLE OF CONTENTS SL.NO. 1.

PARTICULARS PART-I EXECUTIVE SUMMARY

2.

PART-II INTRODUCTION TO THE COMPANY AND INDUSTRY

     3.

PROFILE OF COMPANY INDIAN DAIRY INDUSTRY THE MILK AND MILK PRODUCTS MARKET THE ORGANISED MILK MARKET IN INDIA THE SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY

PART-III LITERATURE SURVEY

4.

PART-IV DESIGN OF THE STUDY  NEED FOR THE STUDY  RESEARCH OF THE OBJECTIVES  RESEARCH PROCESS  SCOPE OF THE STUDY  LIMITATIONS OF THE STUDY

5.

PART-V ANALYSIS AND INTERPRETATION OF DATA

6.

PART-VI FINDINGS

7.

PART-VII SUGGESTIONS

8.

PART-VIII   

CONCLUSION BIBLIOGRAPHY APPENDIXES

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

PART-II

INTRODUCTION TO THE COPMANY INDUSTRY PROFILE

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

COMPANY PROFILE: Kalpataru dairy has been started in the year 1998 and in the year 2004 it has been purchased by the young entrepreneur of Dharwar, Mr. Vijay Mane. Now kalpataru dairy is running under the keen observations of Mr. Vijay Mane. It is located near khalaghatagi city. It is operating in Dharwar and Dharwar regions. It is also one of largest milk producers in the market. The company is very enthusiastic and more ambitioned to cater and carve the new markets in the North Karnataka. The company has good market share in the Dharwar and dharwar regions. They are achieving higher market share in that region by practicing good marketing strategies.

Kalpataru dairy has a good number of satisfied customers in the market. The company is using many new product development strategies to satisfy the customers. Its one among the many dairies which are producing good quality standard toned milk. It has many institutional and domestic customers for their milk. The company has widened its market share about 5% this year. They are now looking for the Belguam market as an institutional segment.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

INDIAN DAIRY INDUSTRY PROFILE INTRODUCTION India's high-value, high-volume market for traditional dairy products and delicacies is all set to boom further under the technology of mass production. This market is the largest in value after liquid milk and is estimated at US $3 billion in India.

More and more dairy plants in the public, cooperative and private sectors in India are going in for the manufacture of traditional milk products. This trend will undoubtedly give a further stimulus to the milk consumption in the country and ensure a better price to primary milk producers. Simultaneously, it will also help to productively utilize India's growing milk surplus.

Milk production in India increased from 17 million tons in 1950-51 to 89.6 million tons in 2004-05. India has rapidly positioned itself as the world's largest producer of milk.

Producing milk in rural areas through smallholder producer cooperatives and moving industrially-processed milk from these smallholder sources to urban demand centers became the cornerstone of government dairy development policy. This policy initiative

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar gave a boost to dairy development and initiated the process of establishing the muchneeded linkages between rural producers and urban consumers.

The performance of the Indian dairy sector during the past three decades has been truly impressive. Milk production grew at an average annual rate of 4.6 percent during the 1970s, 5.7 percent during the 1980s, and 4.2 percent during the 1990s.

Despite its being the largest milk producer in the world, India's per capita availability of milk is one of the lowest in the world, although it is high by developing country standards. The per capita availability of milk expanded substantially during the 1980s and 1990s and reached about 226 grams per day in 2003-04 the per capita consumption of milk and milk products in India is among the highest in Asia, but it is still growing. It is still below the world average of 285 grams per day, and also the minimum nutritional requirement of 280 grams per day as recommended by the Indian Council of Medical Research (ICMR).

Several factors have contributed to increased milk production. First, milk and dairy products have cultural significance in the Indian diet. A large portion of the population is lacto-vegetarian, so milk and dairy products are an important source of protein in the diet. The demand for milk and dairy products is income-responsive, and growth in per capita income is expected to increase demand for milk and milk products.

Despite the fact that dairy production in India is widespread throughout the country and overwhelmingly carried out by small-scale producers, there are still large interregional and interstate variations in milk production. Roughly two-thirds of national milk Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar production comes from the states of Uttar Pradesh, Punjab, Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Andhra Pradesh, and Haryana. However, there have been some shifts in milk production shares of different states. In 2001-02, Uttar Pradesh was the largest milk producer in the country, with about 16.5 million tons of milk, followed by Punjab (8.4 million tons), Rajasthan (6.3 million tons), Madhya Pradesh (6.1 million tons), Maharashtra (6 million tons), and Gujarat (5.6 million tons). The eastern region is lagging behind in terms of dairy development, and imports milk from surplus areas in the West and North.

INDIAN DAIRY INDUSTRY — A PROFILE — The annual milk production is presently 92 million tonnes, contributing around Rs. 1000 billions to the GDP. — Provides assured and remunerative employment round-the-year to 60 millions families.

— The dairy animals make a substantial contribution to household food security by providing income, quality food, energy, fertilizer and assets in over majority of the rural households in India.

— The Animal Husbandry is the single largest contributor under the agriculture sector which provides a remunerative employment round the year at a very small investment.

The dairy animals make a substantial contribution to household food security by Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar providing income, quality food, energy, fertilizer and assets in over majority of the rural households in India.

These livestock keepers are constrained by poor animal health and veterinary services, lack of feed and fodder, water, milk handling, chilling, etc. Besides, there has been lack of infrastructure facilities such as good roads and access to markets, etc. The livestock keepers also lack access to advanced technologies as well as proper institutional support system. The result is that both the production and productivity remain well below its potentials. Thus the losses and wastages continue to remain high.

Adapted breeds and local feed resources although available, but need proven technology supports in its preservation and processing. Such support would substantially improve production and productivity, which would result in higher income for the livestock keepers.

One of the problems faced by India is unemployment, despite the rapid growth rate. The problem is more acute in rural educated and marginally educated youths, who have no alternative but to migrate to urban areas. Due to automation in various core sectors, the employment opportunities have dwindled considerably whereas the service sector has its own limitations, especially the high investment cost per job created. In this context, the dairy industry offers a plausible opportunity of creation of self-employment with minimum investment. There is a scope for doubling the present milk production, which can be achieved with marginal investment, such a step would not only enhance milk production and productivity, but also would create millions of additional jobs.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar Dairying is, in fact, a supplementary activity of the marginal farmers and the landless laborers. It is therefore suggested that dairy and such other animal farming be included within the legal framework of ‘agriculture and agriculture products’. This would enable the marginal farmers and the landless agriculture laborers to benefit from the various government incentives.

Milk is no more a luxury, but essential nutritional requirements of human being. The children largely depend on milk for nutrition. Higher milk production therefore will also increase the health status of the farmers and people at large. Due to several inherent reasons, the cost of milk production is high. One of the important reasons is low animal productivity. Because of high cost, the milk and milk products are not affordable to poor strata of the society. Milk is a perishable commodity. Hence, its conversion to products, such as, milk powder, butter and cheese, etc. is necessary.

Considering these factors, it is reasonable that at par with agriculture produce, the milk products be also exempted from any excise duty, sales tax and such other taxes. This gesture of the government would go a long way in accelerating the growth of the Indian dairy industry from present annual rate of around 4.5 % to more than 9%.

The conversion of excess milk to milk-products is a necessity. The basic principle here is evaporation of water which changes its physical form only, whereas there is no change whatsoever in its chemical composition. One of the reasons of higher cost of milk and milk products is the cost of packaging. To safeguard the quality and safety for human consumption, packaging of milk and milk product is necessary. The milk product manufacturing therefore should be construed as ‘processing milk for preservation’ and it Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar should be exempted from all the taxes and duties like excise, central sales tax and octroi etc.

To enhance milk production during the next five years as well as to address the issues referred in the foregoing sentences, there is an imperative need of policy support from the government on the following core areas: - Clean and quality milk production, processing and packaging - Boost the exports of milk and milk products - Enhance milk production and milch animal productivity

Indian Dairy: the organized sector is expanding Daily India’s modern dairy sector has expanded rapidly. From an insignificant 200,000 liters per day (lpd) of milk being processed in 1951, the organized sector is presently handling some 20 million lpd in over 400 dairy plants. Already, one of the world’s largest liquid milk plants is located in Delhi and handling over 800,000 liters of milk per day (Mother Dairy, Delhi). India's first automated dairy ‘Mother Dairy ‘ has been established at Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar Gandhi agar near Ahmedabad, Gujarat, in Western India and its capacity is capacity is 1 million lpd. It is owned by India’s biggest dairy cooperative group, in Anand, with an annual turnover in excess of Rs 23 billion (US $500 million). Amul-III with its satellite dairies, with total installed capacity of 1.5 million lpd has also been commissioned.

India's first vertical dairy (capacity: 400,000 lpd), owned by the Pradeshik Cooperative Dairy Federation (PCDF) has been commissioned at Noida, outside Delhi Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purposes.

In India, dairying has been practiced as a rural cottage industry since the remote past.

Semi-commercial dairying started with the establishment of military dairy farms and cooperative milk unions throughout the country towards the end of the nineteenth century.

The Indian Dairy Industry has made rapid progress since Independence. A large number of modern milk plants and product factories have since been established. These organized dairies have been successfully engaged in the routine commercial production of pasteurized bottled milk and various Western and Indian dairy products. With modern knowledge of the protection of milk during transportation, it became possible to locate dairies where land was less expensive and crops could be grown more economically.

The Winning Edge Three aspects of India’s modern dairy sector are particularly noteworthy.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar A vast market for dairy products is being built as disposable incomes increase. Its focus is the increasingly affluent middle class, numbering some 300 million — almost the population of the United States — which is confined to well-defined urban pockets and is easily accessible. Milk occupies pride of place as the most coveted food in the Indian diet, after wheat and rice. Milk-based sweets are a culinary delight in all homes throughout the year.

The milk production is pre-dominantly rooted in the cooperative system focus is on the small rural farmer having one or two cow/buffaloes, yielding 2-3 liters of milk per animal. This system is the basis of operation flood, the world’s largest dairy development program.

The preferred dairy animal is the buffalo. Some 65 per cent of the world buffalo milk is produced in India. It has 30 per cent higher total solids compared to cow milk

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar DAIRY INDUSTRY PROFILE •

Human population: 953 million (70 million dairy farmers)

•

Milk production: 74.3 million tonnes (203.5 million lpd)

•

Average annual growth rate (1995-2000): 5.6%

•

Per capita milk availability: 214 g/day or 78 kg/year

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Milch animals: 57 million cows; 39 million buffaloes:

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Milk yield per breedable bovine in-milk: 1,250 kg

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Cattle feed production (organized sector): 1.5 million tonnes

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Turnover of veterinary pharmaceuticals: Rs. 550 crores

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Dairy plants throughput: 20 mlpd

•

Throughput as percentage of total milk output: 10

The Dairy Movement in India The dairy cooperative movement in India continues to be unparalleled in the world in terms of its scope and scale. Launched in the Kaira district of Gujarat during India's independence, farmers were encouraged to form a cooperative to counter exploitatively low prices offered for their milk by the monopoly milk supplier, Polson Dairy. The Kaira cooperative launched its operations in 1946 and operated at two levels. The primary village dairy cooperative society of milk producers collaborated with others in the district to form the milk producers union, which procured and processed the milk. The union processed the milk that was procured from the village dairy cooperatives at its processing plants. In addition to collecting surplus milk, the Kaira union assisted

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar members in expanding production. The father of the Indian dairy movement was Varghese Kurien. A mechanical engineer from the Michigan State University, US, Kurien helped India to become the largest producer of milk in the world.

As the number of district unions increased, the Kaira cooperative was transformed into the Gujarat Milk Marketing Federation Ltd (GCMMF) under the chairmanship of Kurien. GCMMF coordinated the operations of the union and marketed milk and milk products. As the operations were based in Anand, Gujarat, this came to be known as the Anand model. This model was replicated across India. In 1965, NDDB was formed under the chairmanship of Kurien and was mandated with the task of building cooperative dairies across the country. Operation Flood was launched in 1970, which sought to establish dairy cooperatives across India, get rid of middlemen, remove seasonal price variations and make it economically viable for farmers to undertake production and distribution of milk. Operation Flood achieved phenomenal success: trebling India's annual milk production from 21 million tonnes in 1968 to 89 million tonnes in 2004. Nearly 9 million small producers in 74,000 villages began supplying hygienic and fair priced milk to 300 million consumers and earning revenues of Rs 25 billion

in

the

process.

Of the Rs 2 billion invested by World Bank in the second phase of Operation Flood, the net return to the rural economy has been in the region of Rs 240 billion. per year over a period of ten years or a total of Rs 2.4 trillion in all. No other development programme in the world has achieved such success. Several countries like Sri Lanka, Bangladesh, Nepal, the Philippines, Malaysia and some African countries have decided to implement similar projects. The third phase of Operation Flood, implemented during Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar 1985-96 aimed at consolidating the achievements of the first two phases. Infrastructure was strengthened, production enhanced and animal healthcare and nutrition improved.

The Operation Flood III programme was funded by a World Bank credit of US $365 million and food aid worth Rs 2226 million. By May 1995, Rs 15.78 billion had been invested in the three phases of Operation Flood. By the time the third phase came to an end, milk processing capacity had grown to 17.2 million liters per day. Chilling capacity of 6.9 million litres per day had been added and milk powder production capacity of 839 tonnes per day had been set up. By 1999, average milk procurement by the cooperatives had grown to 10.2 million liters per day, of which 9.4 million liters was marketed as liquid milk. The remainder was converted into milk powder, butter, cheese, ghee and other traditional milk products.

DDB (National Dairy Development Board) has been focusing on intensive R&D activities in animal husbandry through the late 1990s. It has set up an embryo transfer lab at Sabarmati Ashram Gaushala in Ahmedabad. NDDB has also been working on improving nutrition quality of the normal cattle feed. NDDB has made it possible to transport milk over long distances by using over 140 insulated rail milk tankers, each with a capacity of 40,000 liters. This has enabled the National Milk Grid to supply milk to milk-deficient regions in the country.

In the year 2000, NDDB (National Dairy Development Board) announced a ten-year plan called Perspective 2010. It is aimed at strengthening the dairy cooperative movement.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

The major objectives include: •

increasing milk procurement by cooperatives from 5.75 mt in 2000 to 17.8 mt in 2010;

•

increasing the number of dairy cooperative societies from 84,289 in 2000 to 129,480 in 2010;

•

increasing the membership in dairy cooperatives from 10.62 million in 2000 to 15.62 million in 2010; and

•

Increasing the amount of milk to be marketed from 4.7 mt in 2000 to 14 mt in 2010.

Specific features of dairy in relation to marketing in developing countries The dairy industry in the developing countries has a number of specific features which distinguish it from the other sectors of agriculture and have particular implications for marketing. First, milk consists of over 85% water, and produced daily. Consequently, Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar high costs of transportation are incurred per unit of output marketed. Also, milk being highly perishable, it needs to be used within a short period or processed and transformed into a more stable, longer-storable form. The quality of milk depends on farm management practices, and milk is potentially subject to adulteration, so strict and comprehensive quality regulations may be necessary when marketing involves more than direct delivery by producers to consumers.

Second, the vast majority of the dairy farmers are small-scale producers, who produce milk as a source of regular cash income. Dairy production is a labor-intensive enterprise, and dairy marketing activities often provide substantial employment.

However, because of asset fixity (high percentage of fixed costs), dairy enterprises often respond to market changes and incentives in a limited and gradual way.

Third, milk can be used to make a wide range of high quality palatable and nutritious products, which often imply substantial value added over the cost of the raw material. When production and consumption points are far apart and demand increase rapidly, processing of dairy products becomes very important.

Fourth, as a consequence of the above features of milk and the market vulnerability of its producers, cooperatives may assume a strong position in milk processing. A survey by the International Dairy Federation in 1984 revealed that in 21 developed countries together accounting for 55% of the world's milk supply, producer Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar cooperatives marketed 86% of total sales of milk from farm to the first handler. In some of these countries, cooperatives also handled 80-90% of the total processing activity. It may be noted that the history of development of dairy cooperatives in these countries are not always similar. However, in most developing countries, dairy producer cooperatives and cooperative processing are either non-existent or very weak. The need for cooperatives in these countries is driven by the need to capture some economies of scale in transportation and processing where numerous small producers are scattered far away from the consumption centres. In many countries, this gap has been filled by establishment of parastatal dairy enterprises for collection and processing of milk to promote domestic dairy production. In most cases, these enterprises ended up processing subsidized imported dairy products, neglecting the rural dairy sector. The monopolistic character of these enterprises often led to inefficiency thus they failed to serve the interests of domestic producers and consumers.

Weaknesses in physical and marketing links between rural producers and urban processors and consumers are among the major constraints to dairy development in the developing countries. It is important to be aware of and understand how such constraints can be addressed in order to devise mechanisms that can transfer growing urban demand into increased livestock production. Inadequate infrastructure and inefficient marketing may lead to increased transactions costs and/or market failure. By better understanding these costs and identifying the ways of reducing their impact, policy prescriptions can be made to promote economic development by fostering production and trade.

CHARACTERIZING DAIRY MARKETING SYSTEMS Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar A dairy marketing system is characterized by: •

The range of dairy products marketed;

•

The size, structure and organization of the enterprises participating in the market for each product and in the entire marketing chain;

•

The conduct and performance of the marketing system; and

•

The existing marketing policies, institutions and organizations, and the physical environment within which marketing takes place.

Functional parameters: These are key descriptors of how the system operates.

Examples include dairy products marketed, marketing agents, marketing outlets, prices at each marketing node, modes of transporting marketed products, etc. Functional parameters combine characteristics related to market structure and conduct.

Performance indicators: These parameters permit assessment of the performance of the system. Examples are the percentage of total dairy products marketed, the ratio of standardized to non-standardized products marketed; the ratio of marketing to total costs; the ratio of farm gate to retail price. The importance of identifying performance

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar indicators is that they form the baseline against which any changes in the efficiency or performance of the system can be measured.

Formal market includes firms and organizations whose daily operations are guided by statutory rules and procedures, e.g. a parastatal dairy processing plant or a company engaged in dairy marketing.

Informal market includes firms whose daily operations are not guided by statutory rules and procedures except for any trade license, e.g. dairy producers and itinerant traders.

A marketing chain defines the flow of commodities from producers to consumers that brings into place economic agents who perform complementary functions with the aim of satisfying both producers and consumers.

A marketing node is defined as any point in the marketing chain where an exchange and/or transformation of a dairy product take place. A marketing chain may link both formal and informal market agents.

The Liquid Milk & Milk Products Market Out of a total production of 88 mt of milk, 46per cent is consumed as liquid milk. Less than 30 per cent of milk production – i.e. 26.4 mt – is packaged. Currently barely 778 out of 3,700 cities and towns are served by the milk distribution network, dispensing hygienically packed wholesome, quality pasteurized milk. According to one estimate, the packed milk segment would double in the next five years.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the country's population. In urban India, an estimated 50 per cent of the total milk produced is consumed by a population of roughly about 350 million. The expected rise in urban population would be a boon to Indian dairying.

Of the three A's of marketing - availability, acceptability and affordability, the dairy sector is at an advantage since Indians are a milk loving people. However what continues to be a challenge is the affordability factor. Volume sales could dramatically increase if small packs of 250 ml or less is made available. Sales of milk powders in mini-sachets, for two cups of tea or coffee, could also help in increasing volumes.

Flavored Milk is increasingly becoming the toast of the milk market. The overall market for flavored milk in India is estimated to have grown 27 per cent in value terms in 200405. Milk-based drinks are the flavor of the season as consumers seek healthy lifestyles.

Nestlé’s Fruit and Milk and Amrit Foods’ Gagan are the two brands that have a significant presence in this segment

Ultra Heat Treatment (UHT) milk or long-shelf-life milk sales are estimated to be in the region of 70 million liters and the segment is growing at a healthy pace of 20-25 per cent per year.

Packaged curd and curd products – such as lassi, buttermilk, chhas, set dahi, mishti doi, etc. – are new products and are witnessing a rapid pace of growth. In terms of volumes this just comprises 5 per cent of dairy products, but they are growing at 10 per cent per Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar annum. Flavored yoghurt, which is popular in the West, however, has not been successful in India.

Traditional products, such as paneer, mithai, khoa and khoa-based sweets, which are available in the unorganized market, is a huge segment. Apart from Amul which has launched paneer and its Mithaee brand which offers traditional Indian sweets, the organised sector has not tapped into the potential that this sub-category offers.

Some facts about organized Milk market in India: Beginning in organized milk handling was made in India with the establishment of Military Dairy Farms.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar •

Handling of milk in Co-operative Milk Unions established all over the country on a small scale in the early stages.

•

Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945

•

Pasteurization and bottling of milk on a large scale for organized distribution was started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963) etc.

•

Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over India. These were taken up with the dual object of increasing the national level of milk consumption and ensuing better returns to the primary milk producer. Their main aim was to produce more, better and cheaper milk.

Milk Production data 1950 – 17 million tonnes 1996 – 70.8 million tonnes 1997 – 74.3 mT (Projected) 2020 – 240 mT Expected to reach- 220 to 250 mT – 2020 India contributes to world milk production rise from 12-15 % & it will increase up to 3035% (year 2020)

SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY Strengths: Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar •

Demand profile: Absolutely optimistic.

•

Margins: Quite reasonable, both on packed and non packed liquid milk.

•

Flexibility of product mix: tremendous opportunities are present. With balancing equipment, we can keep on adding to your product line.

•

Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization.

•

Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years.

Weaknesses:

•

Perishability: Pasteurization has overcome this weakness partially. Surely, many new processes will follow to improve milk quality and extend its shelf life.

•

Lack of control over yield: Theoretically, there is little control over milk yield.

However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar •

Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved.

•

Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why can’t we sell other dairy products too? Moreover, it is only a matter of time before we see the emergence of a cold chain linking the producer to the refrigerator at the consumer’s home!

•

Competition: With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market is large enough for many to carve out their niche.

Opportunities: "Failure is never final, and success never ending”. If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped: •

Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition: o

Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar o

Addition of cultured products like yoghurt and cheese lend further strength - both in terms of utilization of resources and presence in the market place.

o

A lateral view opens up opportunities in milk proteins through casein, and other dietary proteins, further opening up export management.

o

Yet another aspect can be the addition of infant foods, geriatric foods and nutritional

Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular.

Threats: Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance.

The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far outweigh ‘weaknesses’ and ‘threats’. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovation approach (in product lines and marketing) and values (of quality/ethics).

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar The Indian dairy industry has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and cost-effective processing facilities and innovativeness in the market place. All that needs to be done is: to innovate, convert products into commercially exploitable ideas. All the time keep reminding yourself: Benjamin Franklin discovered electricity, but it was the man who invented the meter that really made the money.

PART III-LITERATURE SURVEY

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

INSTITUTIONAL SALES The institutional sales are defined as the process of selling the good and services to the customers who will make purchases in bulk quantity. Now in India the rate of consumerism is increasing predominantly these days. The customers are enjoying the purchase experience in the retail outlets. The increased number of consumerism has the strong supporting factors like the augmentation of the disposable income.

These increased transactions and higher disposable incomes in Indian markets bring down the opportunities to expand the existing businesses and start a new venture. An institutional sale supports the 80:20 rules of the marketing or sales. These 20% Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar institutional customers purchases 80%of the sales and 80% of the customers’ purchases 20%of the total production.

Institutional sales provides very favorable margin to the companies in terms of cash sales and the profit margin is also very high as compared to the daily merchandised factors.

Indian business scenario is changing every day. This change has many reasons in it, they all are not happened suddenly, but, all these are the results of LPG policy of 1991. At present every Indian per capital income has increased and the disposable income also raisened these years. These all lead them to have the paramount experience of purchasing process.

These all factors gives raise to the more business opportunities generally and institutional sales particularly. Institutional sales more surely influenced by the market structure and demand forecasting data of that industry. It has many determining factors like economical, political, legal, and international factors play a vital role in the institutional sales. For the Indian dairy industry these institutional sales are not fixed.

They vary according to the changing demands and other seasonal variations. India is one of hot region in this world. In summers the milk consumption rate as the its end product like cold milk, flavored milk, ice creams, curd, butter milk, etc is very high. So the

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar summer season blossoms the high sales for this milk industry. Hence the milk industry has very changing business for the institutional sales.

The dairy industry is growing in India and all the Indians are lacto-vegetarian in nature.

Indians want to consume more milk content food in their eating menu. 60% of the produced milk in India is consumed by the urban people and this shows that the urban India is growing fastly. The fast urbanization leads to get more opportunities for these institutional purchasers of milk.

These institutional sales are done on the discount rates. The purchasers get a bit high amount of discount in their total purchase. This leads them to get more profit in their manufacturing of their final product and selling. The institutional sales are based on the strong and good relationships with your customers. The customer relationship management (CRM) plays a very vital role in the institutional sales. To boost these institutional sales the manufacturers have to come up with many new marketing strategies in their product promotions and as well a with their product and pricing strategies. The distribution channel also has to be made so lively. The distribution channel has to be o strong and should follow the intensive distribution strategy For this dairy industry the distribution channel are its local operating dealers and other retailers of the market. The dealers are given more commission to achieve the high sales during a period of time. These dealers are very business minded and always push the

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar product into the market which is fetching more commission to them. So its very important to see through this end channels of marketing.

Philip kotler suggests that these institutional markets are very volatile in nature. In this market the buzz word “BRAND” plays a very important role. Many customers make the purchase decision on the basis of their preferred and most trusted brand. To boost the institutional sales the companies have to practice the strong brand building strategy in the customer mind sets. They have to make intensive advertisement campaigns to place their product in the customer mind. In institutional sales the quality is main element than the price. The quality has to be maintained as per the prescribed details.

DEMAND ANALYSIS. The sale of a product depends upon the demand of that product. but the demand of that product depends upon a number of varied factors. These factors are such as price, buyers income, price of substitute or competing products, advertising and sales promotion, Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar population, availability of credit, changes in buyers tastes, needs and preferences, geographical location, expected future trends in prices etc. there are certain fundamental factors which determine the demand for a product. These factors are price of a product, buyer’s income, prices of related goods and advertising and sales promotion.

These factors have high influence on the sales and hence they constitute the controlling variables commonly used in the study of demand. The importance of each of these four factors varies from product to product and for the same product from time to time.

What is demand?

In the ordinary language the word demand means desire. But mere desire does not constitute demand in the economic sense. Because the person with low income may desire to have a MERCEDEZ BENZ car but this doesn’t constitute a demand for a car because that person doesn’t have adequate money to purchase the car. In other words he does not have the ability to purchase the car.

In other words the demand is defined as the human want that are backed by his purchasing power.

Demand implies three conditions; a) desire for a commodity or a service Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar b) willingness to pay the price for it, and c) ability to pay price for it.

Thus demand for any commodity as a desire for that commodity backed up by willingness and ability to pay. Further demand has no meaning without reference to price.

LAW OF DEMAND This law states the relation between the price of commodity and its quantity demanded in the market. the law is” other things remaining equal, the amount of a commodity demanded increases every fall in its price and diminishes with every rise in its price” Thus the quantity of a commodity demanded varies inversely with its price.

INCOME EFFECT OF DEMAND A fall in the price of a commodity results in an increase in the real income of the consumer. Because with the same amount of money to be spent on commodity he can now purchase more of it when its price falls. On the contrary a rise in the price of a commodity results in decrease in the real income of the consumer. Because with the same amount of money to be spent on the commodity, he will now purchase less quantity of it when its prices rises.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

Substitution effect of a demand A fall in the price of commodity leads to an increase in the demand for it, while the price of its substitutions remains constant. On the contrary, a raise in the price of a commodity will make it costlier and lead to a decrease in the demand for it, while prices of its substitutes remain constant. This is the case of contraction of demand are attributed to substitution effect. Normally the substitution effect is stronger than the income effect.

Because consumers always substitute the cheaper commodity for the costlier commodity.

Income effect has positive only in case of superior goods because if their prices fall the consumers real income will increases and they will , there fore buy more of them.

But the income effect is negative in case of inferior goods because if their prices fall the consumers real income increases and they purchase less of such inferior goods. But the substitution effect on the other hand is always positive because consumers always substitute relatively cheaper goods for relatively costlier goods. Thus in the case of superior goods the income effect and substitution effect are both positive. But incase of inferior goods the income effect is negative while the substitution effect is positive

FACTORS GOVERNING DEMAND The law of demand states that demand changes whenever prices changes. But this change in demand which is result of a change in price is known as extension or contraction of demand. But demand may also changes due to changes in factors other

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar than price. This change due to changes in factors other than the price. The factors which bring about changes in demand price remaining the same.

Changes in population: An increase in the size of population naturally leads to an increase in the demand for various goods and services. Conversely, a decrease in size of the population leads to a decrease in demand for goods and services.

Changes in climatic conditions: Demand for certain goods are affected by changes in climatic conditions.

Changes in fashion: Changes in fashion bring about changes in demand.

Changes in tastes, habits etc: If tastes, habits and customs to which people are accustomed change, demand for goods and services also changes.

Changes in quantity of money in circulation: If the quantity of money in circulation increases, people will be having more purchasing power and hence, demand for goods ad services increases. Conversely, if the quantity of

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar money in circulation decreases, people will be having less purchase power and therefore demand for goods and services also decreases.

Changes in the distribution of income and wealth: If the income or wealth is distributed more evenly among the various sections of the community, the purchasing power of majority of the people increases and therefore, demands for goods and services increases.

Availability of substitutes: If the substitutes are available adequate then demand for commodity falls when its substitutes become cheap. If there are no substitutes for a commodity then demand for it does not fall even though their price increases.

Advertisement and salesmanship: Clever and persistent advertisement and efficient salesmanship create new demand and increase the existing demand.

Complementary goods:

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar These goods are the goods which are demanded together. A change in the demand for one leads to a similar change in the demand for others.

Technical progress: The introduction of new products in the market as a result of invention and discoveries also affects the demand. Demand for old things will decrease while demand for new ones increase.

COMPANY DEMAND Company demand is the company’s share of market demand.

This can be expressed as a formula: Company Demand = Market Demand v Company’s Market Share A company’s share of market demand depends on how its products, services, prices, brands and so on are perceived relative to the competitors. All other things being equal, the company’s market share will depend on the size and effectiveness of its marketing spending relative to competitors.

Sales Forecast

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar The Sales Forecast is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment. Sales Forecast is not necessarily the same as a “sales target” or a “sales budget”.

A sales target (or goal) is set for the sales force as a way of defining and encouraging sales effort. Sales targets are often set some way higher than estimated sales to “stretch” the efforts of the sales force.

A sales budget is a more conservative estimate of the expected volume of sales. It is primarily used for making current purchasing, production and cash-flow decisions. Sales budgets need to take into account the risks involved in sales forecasting. They are, therefore, generally set lower than the sales forecast.

OBTAINING INFORMATION ON MARKET DEMAND As a starting point for estimating market demand, a company needs to know the actual industry sales taking place in the market. This involves identifying its competitors and estimating their sales.

An industry trade association will often collect and publish (sometime only to members) total industry sales, although rarely listing individual company sales separately. By using this information, each company can evaluate its performance against the whole market.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar This is an important piece of analysis. However, it finds out that overall industry sales are rising by 15% per year. This must mean that Company is losing market share – its relative standing in the industry.

Another way to estimate sales is to buy reports from a marketing research firm. These are usually good sources of information for consumer markets – where retail sales can be tracked in great detail at the point of sale. Such sources are less useful in industrial markets which usually rely on distributors.

Estimating Future Demand Current Company Demand = Current Market Demand x Current Market Share Very few products or services lend themselves to easy forecasting. These tend to involve a product whose absolute level or trend of sales is fairly constant and where competition is either non-existent (e.g. monopolies such as public utilities) or stable (pure oligopolies). In most markets, total demand and company demand are not stable – which makes good sales forecasting a critical success factor.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar A common method of preparing a sales forecast has three stages: (1) Prepare a macroeconomic forecast – what will happen to overall economic activity in the relevant economies in which a product is to be sold.

(2) Prepare an industry sales forecast – what will happen to overall sales in an industry based on the issues that influence the macroeconomic forecast; (3) Prepare a company sales forecast – based on what management expect to happen to the company’s market share

Demand forecasts can be based on three types of information: (1) What customers say about their intentions to buying new products?

(2) What customers are actually doing in the market?

(3) What customers have done in the past in the market?

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar The value of a customer intention survey increases when there are a relatively small number of customers, the cost of reaching them is small, and they have clear intentions.

An alternative way of measuring customer intentions is to sample the opinions of the sales force or to consult industry experts (1) The trend: are sales growing, “flat-lining” or in decline?

(2) Seasonal or cyclical factors. Sales are affected by swings in general economic activity (e.g. increases in the disposable income of consumers may lead to increase in sales for products in a particular industry). Seasonal and cyclical factors occur in a regular pattern;

(3) Erratic events; these include strikes, fashion fads, war scares and other disturbances to the market which need to be isolated from past sales data in order to be able to identify the more normal pattern of sales (4) Responses: the results of particular measures that have been taken to increase sales.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

PART-IV DESIGN OF THE STUDY

NEED OF THE STUDY Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar The need for demand analysis of institutional sales of milk arises to predict the demand for the milk at present and in future days. Ensuring the demand estimation is vital to our long-term business survival and profitability.

Demand estimation Surveys are an important tool to help us collect the information we need to understand and evaluate the market structure. This survey answers tough questions. A well-designed survey can give answer to the most critical question, Are our products have potential demand in the market?

Demand estimation surveys give us the insight we need to define what is extremely important to our customers. Once we came to know what is most important, we use the surveys to compare our product and its each section’s performance on the customers` wants. Surveys help us to identify which sections may need to improve so we can provide customers to decide how and where to allocate our product in different segments of the market.

The need for the conducting this study was to estimate the potential demand of institutional sales for the company and to know the factors influencing it.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

The Research objectives

 To find out the market potentiality.  To identify the new market opportunities.  To understand the new prospective of institutional sales of milk in Belguam city.

RESEARCH PROCESS

The research was carried out as per steps of consumer research process. The figure below depicts a model of consumer research process.

STEP1: DEFINE THE OBJECTIVE OF THE RESEARCH

STEP2: COLLECTING AND EVALUATING SECONDARY DATA

STEP3: DESIGNING A PRIMARY RESEARCH STUDY

STEP4: COLLECTING PRIMARY DATA

STEP5: PROCESSING AND ANALYSING THE DATA

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

Step1: Define the Objectives of the Research

The first step in the consumer research is to care fully define the objectives of the study. The objectives of the study were explained earlier. The objectives of the study were decided at the vary outset to ensure that research design is appropriate. The statement of objectives helped to define the type and level of information needed.

Step2: collecting and evaluating secondary data

A search for secondary data generally follows the statement of objectives.

Secondary information is any data originally generated for some other purpose other then the present research objectives. It includes findings based on research done by outside organizations, data generated in-house for earlier studies, details of other related documents & even customer information collected by the firms sales departments like sales call reports etc. Locating secondary data is called secondary research.

In this secondary data was not available, as earlier studies were not carried out on this topic at on stores level. To meet the objectives primary research was undertaken.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

Step3: Designing a primary research study

The design of a research study is based on the purpose of the study. A quantitative study was undertaken, as descriptive information was needed.

Research design is the specification of procedures for collecting &analyzing the data necessary to identify or react to a problem or opportunity, such that the difference between the cost of obtaining various levels of accuracy & the expected value of the information associated with each level accuracy is maximized.

RESEARCH DESIGN \ METHODOLOGY DATA COLLECTION DATA COLLECTION APPROACH:

Survey Research

DATA COLLECTION INSTRUMENTS:

Questionnaires, Attitude scale

SAMPLING PLAN SAMPLE UNIT:

SAMPLE SIZE: METHOD OF SAMPLE SIZE DETERMINATION: SAMPLING PROCEDURE:

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Milk consumption institutions

100 Respondents Unaided judgment Non probability sampling

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar SAMPLING FRAME: SAMPLING PLAN:

Institutional Customers Selection of the customers based on the quantity Purchases

STATISTICAL TOOLS

 Simple percentage method  Measures of central tendency  Graphical representation tools like charts, tables etc

SURVEY DETAILS

LOCATION OF SURVEY: DURATION OF THE SURVEY:

Dharwar 16 days.

Step4: Collecting primary Data

The survey has conducted in all the areas of Dharwarcity during the business hours. The respondents generally sought no assistance except for one or two questions.

Data collection began in the first week of February and was completed in second third Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar week of March. On an average took 10 minutes for respondents to answer the questionnaire. Respondents who were approached during morning hours were reluctant in filling up the questionnaire because of the time involved in responding. But when the customers were approached during afternoon and evening, it received encouraging response. Some of the customers were very enthusiastic. They showed keen interest and added their views regarding the survey topic.

STEP: 5 PROCESSING AND ANALYSING THE DATA

Analysis of data is done to build a sort of intellectual Model where the relationships involved are carefully brought out so that some meaningful inference can be drawn. It involves the presentation of data through tables, graphs and diagrams.

Statistics was used to translate responses into meaningful information to get the most out of the collected data. Inferences have been drawn of the analyzed Data with proper supportive data.

SCOPE OF THE STUDY

The scope of the study is broader than mere gauging the demand estimation of institutional sales. It makes an effort to build and strengthen relationship with the

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar customers. It makes Competition analysis as well as helps in knowing the expectations of the customers along with the market structure and its consumption pattern.

The result obtained cannot be generalized to all the markets, as the methods for arriving at the sample size and selecting the sample were unempirical. . The study will help the company to identify the new segments and need to come up with the new marketing strategies so to achieve the market leadership and earn the revenues start from the entering stage. The study will also help the management to decide which strategies are to be used to tap the potential market

LIMITATIONS OF THE STUDY

Every study has its own limitations. The limitations of this study are:  Small Sample size  Study is restricted by the time  Absence of direct interference of owners in the outlets.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

PART V DATA ANALYSIS AND INTERPRETATION

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

TYPE OF RESPONDENTS TYPE OF NO.OF INSTITUTIONS RESPONDENTS HOTELS

27

HOSTELS

5

HOSPITALS

0

CANTEENS

15

MOILE TEA SALES

53

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

TYPE OF RESPONDENTS

27

53 0

5

15

HOTELS

HOSTELS

HOSPITALS

CANTEENS

MOILE TEA SALES

INTERPRETATION: The above chart shows that there is more number of respondents is from mobile tea sales as compared to the hotels, hospitalsand canteens. This is all because the population of mobile tea sales is more in Dharwar because of their character of mobility.

END USE OF MILK IN HOTELS

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar END PRODUCT TEA/COFFEE SWEETS CURD

NO.OF RESPONDENTS 27 22 25

OTHERS

18

END USE OF MILK IN HOTELS

20%

29%

TEA/COFFEE SWEETS CURD OTHERS

27% 24%

INTERPRETATION: The above graph shows that in all visited hotels every one use milk for preparing tea and coffee and few of them use for preparing curds as due to the demand because demand for the curd is more due to the heat in Dharwar city. And in winter season the demand for tea and coffee increases due to cold and also in rainy season. And from total number of hotels visited i.e. 27 respondents maximum of them use milk for preparing sweets as well as others.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

END USE OF MILK IN HOSTELS

END PRODUCT

NO.OF RESPONDENTS

TEA/COFFEE

05

SWEETS

0

CURD

04

OTHERS

0

END USE OF MILK IN HOSTELS

0% TEA/COFFEE

44%

SWEETS 56%

CURD OTHERS

0%

INTERPRETATION:

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar The above graph states that in all visited hostels all respondents use milk in preparing tea and coffee and also maximum respondents use milk for preparing curd due heat in the city. If hostels start supplying food to the students staying in hostel then this segment will be of good potential for the NOVA milk.

END USE OF MILK IN CANTEENS

END PRODUCT

NO.OF RESPONDENTS

TEA/COFFEE

15

SWEETS

13

CURD

15

OTHERS

05

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar END USE OF MILK IN CANTEENS

10% 32%

TEA/COFFEE SWEETS CURD

31%

OTHERS 27%

INTERPRETATION: The above figure states that from all the canteen respondents every one uses milk for preparing tea, coffee and also curd. to increase there market share and also to retain the existing customers they go In preparing of Varity of sweets and also like other dishes.

The people in Dharwar city are addicted to tea as the demand for coffee in this city is very less. Even though there is high temperature the people go in for consuming tea.

END USE OF MILK IN MOBILE TEA SALES

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar END PRODUCT

NO.OF RESPONDENTS

TEA/COFFEE

53

SWEETS

02

CURD

04

OTHERS

09

13% 6% 3%

TEA/COFFEE SWEETS CURD OTHERS 78%

INTERPRETATION: The above graph clearly states that end use of milk in mobile tea sales is for preparing tea and coffee. Due to excess demand for curd and also lassi even the mobile tea sales go in for preparing another product called as lassi. These people also go in for preparing of sweets and also others.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

TOTAL CONSUMPTION OF MILK BY THE INSTITUTIONS IN A DAY

CONSUUMPTION TYPE OF INSTITUTION OF MILK PER DAY(LTRS) HOTELS

1861

HOSTELS

18

HOSPITALS

0

CANTEENS

687

MOBILE TEA SALES

1300

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

1300 1861

687

18 0

HOTELS

HOSTELS

HOSPITALS

CANTEENS

MOBILE TEA SALES

INTERPRETATION: The above figure clearly sates that from all the visited institutions the total consumption of milk is 3866 0f liters from all the visited institutions. The demand for curd, lassi and others depends on the season but the demand for tea and coffee hardly goes down which is very negligible. In other season the demand for others like badam milk goes up but in summer there is no demand for others in Dharwar city. The highest consumer of the milk from all visited institution hotels are ahead and next comes mobile tea sales.

SOURCES OF MILK FOR HOTELS

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar SOURCES

NO. OF LITRES

LOOSE

734

NANDINI

437

DUDH PANDARI

480

KRISHNA

107

AROKYA

142

TOTAL CONSUPTION OF MILK IN VISITED HOTELS

6%

7% 39%

25% 23%

LOOSE

NANDINI

DUDH PANDARI

KRISHNA

AROKYA

INTERPRETATION: The above figure clearly states that for the hotels the major supplier of milk is loose.

These are the people who owns there own buffalo’s and early in the morning they supply milk to all the hotels. As Dharwar city is surrounded by villagers whose main business is agriculture and

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

SOURCES OF MILK FOR HOSTELS

SOURCES

NO. OF LITRES

LOOSE

8

NANDINI

0

DUDH PANDARI

05

KRISHANA

00

AROKYA

05

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar TOTAL CONSUMPTION OF MILK IN VISITED HOSTELS

28% 44% 0% 28%

LOOSE

NANDINI

0%

DUDH PANDARI

KRISHANA

AROKYA

INTERPRETATION: The above chart shows that the suppliers for the visited hostels are the milk man who comes on motor bike these are the people who have almost captured the market in Dharwar because of there time management, trust, the way they communicate to the customers and most importantly the quality of the product is very high compared to the other suppliers. next are the competitors like DUDH PANDARI AND NANDANI. in this segment other competitors like the local manufacturer KRISHNA and AROKYA are not that effective.

SOURCES OF MILK FOR CANTEENS

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar SOURCES

NO. OF LITRES

LOOSE

180

NANDINI

164

DUDH PANDARI

180

KRISHANA

62

AROKYA

72

CONSUMPTION OF MILK IN VISITED CANTEENS

10% 9%

31%

26% 24%

LOOSE

NANDINI

DUDH PANDARI

KRISHANA

AROKYA

INTERPRETATION: This above graph clearly shows that here in this segment other suppliers like NANDANI,DUDH PANDARI have made it to capture the market by there promotional activities and also with there sales force they are able to tap the market in this segment milk man is slowly loosing there market share. and also other competitors like KRISHNA AND AROKYA are slowly tapping the market.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

SOURCES OF MILK FOR MOBILE TEA STALLS

SOURCES

NO. OF LITRES

LOOSE

537

NANDINI

302

DUDH PANDARI

267

KRISHANA

62

AROKYA

132

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar CONSUMPTION OF MILK IN VISITED MOBILE TEA SALES

LOOSE NANDINI DUDH PANDARI KRISHANA AROKYA

INTERPRETATION: The above chart clearly states that in this segment the milk man are the primary suppliers to all the mobile tea stalls. Other competitors are also heading very closely to the market leaders in tapping the market. The milk men are very comfortable with the relation with the owners of the tea stalls and also there flexibility towards the mode of payment. These are the reasons why the milk men or local dairy are the market leaders in this segment.

TOTAL CONSUMPTION PATTERN OF MILK IN DHARWAR CITY BY THE INSTITUTIONS

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

END PRODUCT

NO.OF RESPONDENTS AND THE USAGE (OUT OF 100 )

TEA/COFFEE

98

SWEETS

38

CURD

56

OTHERS

24

CONSUMPTION PATTERN OF MILK IN BIJAPUR CITY

24 98

56

38

TEA/COFFEE

SWEETS

CURD

OTHERS

INTERPRETATION: The above chart clearly states that the end use of milk in Dharwar city is mainly in preparing of Tea/Coffee. As also earlier stated that the people over in Dharwar are very much addicted towards consumption of Tea/Coffee. Due to high temperature in this Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar city much of the respondents use milk in preparing curd. And few other respondents use milk in preparing verity of items..

SUPPLY SCHEDULE OF MILK IN DHARWAR CITY

SOURCES

SULLY CHEDULE OF MILK IN DHARWAR

NADINI

5-00 AM

DUDH PANDARI

5-00 AM

KRISHNA

4-45 AM

AROKYA

5-00 AM

LOCAL MILK

5-00 AM TO 7 AM

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

MODE OF PAYMENT FOR SUPPLIERS

MODE OF PAMENT

RESPONDENTS

CASH

82

CREDIT

18

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

MODE OF PAYMENT

18%

82%

CASH

CREDIT

INTERPRETATION: The above chart shows that all the suppliers believe in cash and carry policy. Few of brand go for giving in credit for the customers this is because the suppliers do not want any clashes in their business .Few of milk men go in for giving credit to those customers who are well known to them and even if credit is given the collection is done within couple of days as it is daily business.

MAIN SOURCES OF MILK

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar SOURCES OF MILK

CONSUUMPTION OF MILK PER DAY(LTRS)

NANDINI

249

SAHYADRI

828

MORANA

1118

AROKYA

534

LOOSE/LOCA L

1177

MAIN SOURCES OF MILK IN BIJAPUR

249 1177

828

534

NANDINI

SAHYADRI

1118

MORANA

AROKYA

LOOSE/LOCAL

INTERPRETATION: Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar The above figure clearly mentions that the market leader in all segments are local dairy and milk men this is all because of earlier stated the good relation, trust, reliability, time management.

PART-VI

FINDINGS

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

FINDINGS During the survey it is found that Dharwar is very much potential market for “NOVA MILK” of KALPATARU DAIRY, as there is always scope for such products which are of good quality and the city has more disposable income, day by day it is increasing as you find at least 2-3 people getting employed and minimum 2 to 3 people starting up new business it might be kirana shop or dealers for any company, so the people in this city are ready to spend the money for good product and for such products which are good for health.

During the survey it was found that local dairy is the only person who is satisfying the need of the customers. There fore it will be a good potential market for NOVA MILK and also other player “DUDH PANDARI” have come very aggressive into the market with good promotional activity and the people here say that the quality of this product is “OK”. This product is produced in solapur (Maharashtra). As the border of Karnataka and Maharashtra is very near to this city we find outside company doing good business in Dharwar.

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar Due to the brand name and efforts of aggressive promotional strategies initially the “NANDANI” is also making a very good business in this city. It has already captured 31% of total market. “AROKYA” is struggling to tap the market as market leaders like LOCAL DAIRY,NANDANI,DUDH PANDARI have captured the almost total market. But the people here complaint regarding the quality of the product.

SUGGESTIONS

 The liquid milk should be offered in different range of packets.  The packing should be very strong and should not give bad smell once it is opened.  Should maintain good relationship with the retailers as they are main source who will help the company to create brand awareness.  They can also offer storage devices like refrigerator to bulk buyers.  Delivery timing should be maintained on time.  Special care & attention should be given to rural areas as they are the un tapped & potential market.  As early as possible diversification in products range offering should be done. Like (curd, buttermilk & milk powder) Babasabpatilfreepptmba.com

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“DEMAND ESTIMATE OF MILK FOR INSTITUTIONAL SALES, in Dharwar

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