abdul sajid
TRANSCRIPT
SL No. List of ContentsPage
Number
1 INTRODUCTION 1
General Introduction
Market
Marketing
Marketing Mix
2 Industrial Profile
3 Company Profile
4 Product Profile
5 Research & Design
6 Analysis and Interpretation
7 SWOT Analysis
8General Observations ,Suggestions’ and Recommendations
9 Conclusion
10 Bibliography
Introduction
India is the world’s highest milk producer and all set to become the world’s largest food factory. The milk industry in India is witnessing a stupendous growth. The production liquid milk touched a high of 85 million tons in 2001-02 placing the first in the world.
Since 1991, after liberalization anybody and everybody have been free to enter the dairy industry and to reap benefits from the markets and domestic federations created and nurtured with their sweet and blood. Multinationals, backed by their surplus capital, are seeking a hefty share of Indian milk and milk products markets. At the same time, regional private companies have been able to penetrate markets on the strength of aggressive pricing made possible by cavalier treatment of taxation loss and quality standards.
This products and marketing facility training was undergone to get the practical exposure of milk industry.
In this programmed training was undergone in Mandya milk union limited (manmul), an Amul patterned dairy co-operatives, which is supervised by KMF.
In this training programmed, the manmul has as a whole. It was studied about the products and marketing facilities departments in manmul, problem areas of the marketing organization, and given some valuable suggestions to improve the efficiency in the organization.
General Introduction
Marketing is a social and managerial process by which individual and groups obtain what they need and what through creating offering and exchanging products and value with others.
According to American Marketing Association:-
American Marketing Association defines marketing. “Marketing is the process of planning and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.
“Marketing is an organizational function and a set of process for creating, communication and delivering value to customers and for managing customer relationship in ways that benefits the organization and it stakeholders.
PETER DRUCKERMarketing is the catalyst for transmutation of latent resources of desires into accomplishments and the development of responsible economic leaders and informed economic citizens.
NATURE OF MARKETING OBJECTIVES Define marketing and describe its primary nature. Show how marketing bridges the gap between producer and
consumers. Online the functions of marketing. Demonstrate the scope of marketing. Contrast activities in each of the three orientations of business in
the marketing domain. Position marketing as one of the basic business functions.
MARKETINGMARKET
Marketing touches all of us every day if our lives the marketing system makes everything easy and simple.
It delivers a standard of living a comfortable life that would have been inconceivable to our ancestors.
Market is the actual potential of a product.
MARKETING
Most people mistakenly identify marketing with selling and promotion
Selling is only the tip of the marketing iceberg.
It is only one several functions of marketing.
Marketing is human activity directed at satisfying needs and wants through exchanges processes.
This definition states that marketing takes place in relation to markets to
Actualize potential exchanges for the purpose of satisfying human needs
And wants exchange processes involve sellers’ searching buyers,
Identifying this needs designing appropriate products.
APPROCHES TO THE STUDY OF MARKETING AND ECONOMIC DEVELOPMANT.
Marketing may be studied from several points of view the following are the most popular approaches.
Commodity ApproachIn the commodity approach to the study of marketing, the subject matter of discussion centers around the specific commodity selected for the study and includes the sources and conditions of supply nature and extent of demand the distribution channels used etc.
Institutional Approach:-In this approach the focus is on the study of the various middle man facilitating agencies such as producers, wholesalers, retailers etc.The study includes their positions in the distribution channels the purpose of their existence the functions performed and services rendered by them.
Functional Approach :-The focus in this approach for understanding marketing is on the different kinds of functions like selling, storage, transportation and financing in this approach studies are made as to how this functions, are carried out in various product and markets and by various marketing institutions.
Managerial Approach :-In this approach the focus of marketing study is on the decision marketing process involved in the performance of marketing functions at the level of a firm managerial marketers are especially marketers are especially interested in marketing analysis, planning, organization, implementation and control.
Societal Approach :-The social approach focuses on the social contributions and costs create by various marketing activities and institutions in the focus of study therefore is the interactions between the various environmental factors such as sociological, cultural, political, ecological, legal and marketing decisions and their impact of the well-being of the society.
System Approach :-System thinking recognizes the inter relations and inter-connections among the components of a marketing system in which products, services, money equipment and information flow from marketers to customers.
The focus of system approach is therefore the analysis of these marketing flows and communication.
This approach is also of recent origin and increasing becoming popular.
GOALS OF MARKETINGMarketing affects so many people in so many ways some people
Intensely dislike modern marketing activity charging in with ruining the
Environment creating unnecessary wants teaching greed to youngsters,
Bombarding with inane ads etc. is also charge the marketing consists of
Distributions marketing influences to buy all sorts of things we really
Did not need which we found later on we did not even want.
Maximize Consumption :-
The job of marketing should that facilitating and stimulating maximum consumption which will in turn create maximum production, employment and the wealth the basic assumption for this is that the more people buy and consume.
The happier they are “more is better” there are other who believe that less is more and “small is beautiful this belief is based on too affluent people leading unhappy lives”.
Maximize Choice :-
The system that enables consumers find those goods which satisfy their taste in a variety of products and choices is considered mother goal of marketing system consumers are given choices it improves their satisfaction when choices are maximized cost of goods may increase and consumer also find it difficult to search.
Maximize Consumer Satisfaction :-
Maximizing consumer’s satisfaction rather than consumption is considered a serious goal of marketing system. Although it is difficult to measures consumers’ satisfaction it may be considered
that meeting the needs and want of consumers results in consumers satisfactions.
Maximize Life Quality :-
The goal marketing also includes the improvement in the quality of life- the quantity range, accessibility and cost of goods. It is not measures and is subject to conflicting.
MARKETING MIX
Marketing mix refers to the set of controllable tactical marketing tools-product, price, place and promotions that the firm blends to produce the response it wants in the target market.
The marketing mix describes the specific combination of marketing elements and used to achieve an organization or individual objectives and satisfy the target market.
The mix was coined by Jerome.Mc.Curthy and it is popularly known as four P’s of marketing these four elements sub-mixes should be taken as instruments by the management while formulating marketing plans.
Every marketing manager should have a thorough knowledge of 4 ps.
The marketing mixes have to be changed whenever marketing conditions like economical, technology political, legal changes.
Marketing Mix of MANMUL.
According to N.H Borden mix refers to the appointment of efforts.
The combination the designing and integrate of the elements of marketing into a program or mix which on the basis of an appraisal of the market.
Force will best achieve an enterprise at a given time.
Product:-
Product is the first “p” is marketing mix. Components.
The product mix of manmul consists of milk and milk products, such as toned milk sachets, standard milk sachets, curd sachets, peda sachets etc. all the products are non-durable products.
NANDINI is the family brand name for all the product of manmul. Packaging for the products of manmul differs from one another.
Polythene film pouch is used for the toned milk, standard milk, curds and butter milk.
Price:-
Price is the second ‘P’ of marketing mix component. Price is the amount for which a product is exchanged.
Manmul follows administered price policy fixed by KMF for all the products.
The prices of the products include the cost of production and the commission given to agents.
The commission structure is designed on the basis of the risked involved in storing the product and in selling them.
The statement showing the rate chart of milk and milk products:-
Place :-
SL NO. Product Name Quantity Dealers Rate MRP
1 Tone milk 1 ltr 23.16 242 Curds 500gm 13.88 153 Ghee 1 ltr 272.73 3004 SMP 1 kg 204.55 2255 Butter ½ kg 127.79 1426 Mysore Paak 500 gm 129.47 1457 Peda 250 gm 62.50 708 STFM 200ml 13.31 159 Bandam powder 500gm 102.68 11510 Coconut Burfi 250 gm 66.97 7511 Dairy whitener 1 kg 200 220
12Nandini Eclairs chocolates
3.2 233.05 275
Place is the third ‘p’ in the marketing mix. Distribution refers to the process through which the final products pass manmul to the ultimate consumer.
This process includes intermediaries who undertake the activities of distribution products to the general public.
The distribution channel of manmul is very simple i.e., the distribution channel of manmul and its consumer.
Manmul uses 56 routes to distribute its products. Marketing Places Manmul’s products include whole of Mandya district and some Parts of Rural and Urban districts of Bangalore.
Promotion :-
Promotion is the fourth ‘p’ of marketing mix. Most of the promotional activities are undertaken by KMF, through KMF creates brand image among the prospective customers.
Sales promotion places a very important role in improving the sales of products. Manmuls production activities are in the form of advertisement, personal selling and sales promotion.
The main aim of the production techniques is to bring awareness about the product in the mind of the consumer and to boost sales.
Promotional techniques
The main promotional techniques adopted by the manmul are.
I. School children will be brought to dairy for visit to create awareness.
II. Arrangements have been made for the visit of women group association, to dairy.
III. Advertisement campaign by way of putting holders, providing display materials to retailers are undertaken.
IV. All through the day advertisement given to cable operators for telecast and placing in local papers.
V. Public contact programmed of one day is being launched in all the taluks of Mandya district.
Industrial profile
Karnataka Cooperative Milk Producers' Federation Limited (KMF)is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives.
It is the second largest dairy co-operative amongst the dairy cooperatives in the country. In South India it stands first in terms of procurement as well as sales. One of the core functions of the Federation is marketing of
Milk and Milk Products. The Brand “Nandini" is the household
Name for Pure and Fresh milk and milk products.KMF has 13 Milk Unions throughout the State which procure milk
From Primary Dairy Cooperative Societies (DCS) and distribute milk to the consumers in various Towns/Cities/Rural markets in Karnataka.
The first ever World Bank funded Dairy Development Program in the country started in Karnataka with the organization of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from World Bank, Operation Flood II & III.
The dairy co-operatives were established under the ANAND pattern in a three tier structure with the Village Level Dairy Co-operatives forming the base level, the District Level Milk Unions at the middle level to take care of the procurement, processing and marketing of milk and the Karnataka Milk Federation as the Apex Body to co-ordinate the growth of the sector at the State level.
Coordination of activities among the Unions and developing market for Milk and Milk products is the responsibility of KMF.
Marketing Milk in the respective jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid milk among the member Milk Unions is monitored by the Federation.
While the marketing of all the Milk Products is organized by KMF, both within and outside the State, all the Milk and Milk products are sold under a common brand name NANDINI.
THE GROWTH PROCESS
The growth over the years and activities undertaken by KMF is summarized briefly hereunder:
KEY ITEMS 1976-77 2011-2012(Up to Oct'11)
Dairy Co-operatives No’s 416 12736 Regd. /11305 Funct.
Dairy Co-operatives No’s 37000 21.19 Lacs
Avg. Milk Procurement Kgs/day 50000 Avg.42.89
Peak Proc.46.49
(Nov'11) LKPD
Milk Sale Lts/day 95050 28.56 LLPD / Curds: 2.69
LKPD / Good life 2.07 LLPD
Cattle Feed Consumed Kgs/DCS 2562
Daily Payment to Farmers
Rs.Lakhs 779
Turnover Rs.Crores 4542.00
World Bank Study – Observations
The World Bank, in its study on the effect of Co-operative dairying in Karnataka, has pointed out that: The villages with Dairy Co-operative Societies are much better off than those without the families with dairy cattle are economically better than those without dairy cattle.
Women who had no control on the household income have better control in terms of Milk Money.
A single commodity? MILK? Has acted as a catalyst in the change in the Socio-Economic impact of the rural economy.
There is a positive impact on those at the lower end of the economic ladder both in terms of landholding and caste.
PERSPECTIVE PLAN 2010
After the closure of OF-III project. Government of Karnataka and NDDB signed an MOU during February 2000, for further strengthening the Dairy Development Activities in Karnataka with an outlay of Rs.250 Corers.
Consequent to the announcement of new lending terms and conditions by NDDB through an evolution of an action plan - Perspective 2010 to enable the dairy cooperatives to face the challenges of the increased demand for milk and milk products by focusing efforts in the four major thrust areas of Strengthening the Cooperatives.
Enhancing Productivity, Managing Quality and building a National Information Network, plans are under implementation
FUTURE VISION
To consolidate the gains of Dairying achieved in the state of Karnataka and with a view to efficiently chill, process and market ever developing and increasing milk procurement with an utmost emphasis on the Quality and in the process conserve the socio-economic interests of rural milk producers, the Govt. of Karnataka through KMF has proposed to undertake several projects with financial and technical support of NDDB for which an MOU was signed between Govt. of Karnataka and NDDB on 10th Nov. 2004.
I Projects undertaken by KMF / Union budget
Value
1 UHT Milk Plant – 1 LLPD at Channarayapatna 10 corer.2 1.2 100 Ml UHT Milk packing facility at Channarayapatna 3 corer.3 1.3 UHT Milk Packing Plant at Kumbalgodu for MANMUL – 100 TLP 12
corers.4 1.4 Boiler installation at CFP’s – Dharwad, Rajanakunte & Gubbi 80 lakh.5 1.5 Ksheera Bhavana Conventional Hall at Hassan 680 lakh6 1.6 Raw Material Godown facility – 5000 Ton capacity at Dharwad 450 lakh7 1.7 Raw Material Godown facility – 3000 Ton capacity at Gubbi 220 lakh8 1.8 Raw Material Godown facility – 1000 Ton capacity at Rajanukunte 110
lakh9 1.9 7 Lakh UHT Milk storage cap. Godown at Channarayapatna 230 lakh
II Projects under planning stage
2.1 Ice Cream Plant at Bellary – 10000 Liter per day capacity 10 corer.
2.2 Nandini Milk Product Plant modernization Project 178 lakh.
2.3 Nandini Milk Packaging Plant expansion Project 15 Corer.
2.3 Nandini Milk Packaging Plant expansion Project 15 Corer.
III Projects undertaken by KMF Under GOK Grant / RKVY Assistance
3.1 Cattle Feed Plant – 300 MTPD at Shikaripura 45 corers.
3.2 Bidar Mini Dairy – Creation of Milk Packing facility to cater Hyderabad region market demand 1 corer.
3.3 Gulbarga Dairy - Creation of new Cold room, packing facility and Milk handling capacity enhancement from 50 KLPD to 100 KLPD 1.02 corer.
3.4 Creation of Bio-Security measures at N.S.S., Hesaragatta 150 Lakh.
3.5 Creation of infrastructure facilities in Training Centers at Dharwad, Mysore and Bangalore 150 Lakh.
3.6 Fodder Densification Projects at Chamarajanagar, Haveri & C.Durga 295 lakh.
3.7 Bijapur Dairy – New Cold room, refrigeration and Milk packing capacity enhancement 100 lakh.
3.8 Mineral Mixture Plant at Dharwad CFP 40 Lakh.
IV Projects undertaken by NDDB Under PERSPECTIVE PLAN
4.1 30 MTPD Powder Plant at Channarayapatna 69.42 corers. 4.2 4 LLPD – 7 LLPD expansion and modernization of Mother Dairy
20.87 corers. 4.3 CFP Gubbi Expansion (348.29 lakh)CFP Hassan expansion form 100 to
200 TPD (443.11 lakh) Ice cream Plant expansion at Mother Dairy ( 265.11 lakh) 10.58 corers.
4.4 Cattle Feed Plant – 300 MTPD at Hassan 37 corers. 4.5 Cattle Feed Plant at Ramanagara District in place of Chellagatta (Project
at Chellagatta is approved by NDDB and later on desired to have alternate site as chellagatta site is not suitable due to various constraints) 61.29 corers.
4.6 HASSAN DAIRY – New processing facility (1.2 LLPD to 3 LLPD) and Training 17.66 corers.
4.7 MYSORE DAIRY – 3 T boiler, refrigeration for 5 LLPD. CBMM, pasteurizer etc 11.35 corers.
4.8 MANDYA DAIRY - Dairy expansion from 2.25 LLPD to 4.25 LLPD 19.13 corers.
4.9 TUMKUR DAIRY – 1 LLPD – 2 LLPD (1st Phase) Up to 3.5 LLPD (in 2nd Phase) 19.26 corers.
4.10 BAMUL - Bangalore Dairy – New Product Block Hosakote Dairy 53.10 corers.
4.11 D K M U L - Mangalore Dairy Expansion from 2.5 LLPD to 4 LLPD with flexi packing facility 26 corers.
4.12 SHIMUL - New Dairy at Davangere 27.52 corers.
4.13 Quarantine station strengthening under NDDB-KMF PTS Project 17 lakh
Other GOK Financial Support:
1. To support Milk Producers of DCS members GOK is providing an amount of Rs.2.00 per litre as incentive to the milk producer from 2008-09 onwards.
2. GOK is providing financial assistance for strengthening Dairy Development infrastructure facilities at Northern Karnataka milk union’s jurisdiction which will also redress regional imbalance as per Dr. Nanjundappa's report.
UNITS OF KMF
KMF has the following Units functioning directly under its control:
1. Mother Dairy, Yelahanka, Bangalore.2. Milk Product Plant, Channarayapatna.3. Nandini Milk Products, KMF Complex, Bangalore.4. Cattle Feed Plants at Rajanukunte/Gubbi/Dharwad/Hassan.5. Nandini Sperm Station (formerly known as Bull Breeding Farm &
Frozen Semen Bank) at Hessaraghatta.6. Pouch Film Plant at Munnekolalu, Marathhalli.7. Central Training Institute, Bangalore & Training Institutes at
Mysore/Dharwad.8. Sales Depots at B'lore, Mysore, M’lore, Hubli, Gulbarga, Tirupathi
& Kannur.
Objectives.
KMF is a Cooperative Apex Body in the State of Karnataka representing organizations of milk producers' and implementing around dairy development activities to achieve the following objectives:
To ensure assured and remunerative market round the year for the milk produced by the farmer members.
To make available quality milk and other premier dairy products to urban consumers.
To build & develop village level institutions as cooperative model units to manage the dairy activities.
To ensure provision of inputs for milk production, processing facilities and dissemination of know how.
To facilitate rural development by providing opportunities for self employment at village level, preventing migration to urban areas, introducing cash economy and opportunity for a sustained income.
The philosophy of dairy development is to eliminate middlemen and organize institutions to be owned and managed by the milk producers themselves, employing professionals.
To sum it up, every activity of KMF revolves around meeting one basic objective: 'Achieve economies of scale to ensure maximum returns to the milk producers, at the same time facilitate wholesome milk at reasonable price to urban consumers'. Ultimately, the complex network of cooperative organization should build a bridge between masses of rural producers and millions of urban consumers and in the process achieve a socio-economic revolution in every hinterland of the State.
Organization Chart
The organization is three tiered on Co-operative principles.
Dairy Co-operative Societies at grass root level. District Co-operative Milk Unions at single / multi district level. Milk Federation at State level.
All above three are governed by democratically elected board from among the milk producers. Under the direction of elected boards, KMF, various functional Units & Unions are performing the assigned tasks to ensure fulfillment of organization objectives.
Vision
To march forward with a missionary zeal which will make KMF a trailblazer of exemplary performance and achievements beckoning other Milk Federations in the country in pursuit of total emulation of its good deeds?
To ensure prosperity of the rural Milk producers who are ultimate owners of the Federation.
To promote producer oriented viable cooperative society to impart an impetus to the rural income, dairy productivity and rural employment.
To a bridge the gap between price of milk procurement and sale price.
To develop business acumen in marketing and trading disciplines so as to serve consumers with quality milk, give a fillip to the income of milk producers.
To compete with MNCs and Private Dairies with better quality of milk and milk products and in the process sustain invincibility of cooperatives.
MISSION
Heralding economic, social and cultural prosperity in the lives of our milk producer members by promoting vibrant, self-sustaining and holistic cooperative dairy development in Karnataka State.
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 Centre’s - as its main stay.
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 lakhs 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 centers, 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 Organizations.
Additional processing facilities were created & existing facilities augmented every decade with the help of Govt. / Zilla Panchayat and NDDB to handle ever increasing milk procurement without declaring milk holidays. The processing facility as exists at 32.25 lakh liters/day is further strengthened.
Quality and Food Safety
During the last ten years, the Federation is giving greater emphasis on procuring quality milk from DCSs under the concept of “Quality Excellence from Cow to Consumer.” Many Clean Milk Production (CMP) initiatives have been implemented at all the stages of procurement, processing and marketing.
Among these CMP initiatives, noteworthy initiative is the setting up of Community Milking Parlors in villages.
The KMF is forerunner to introduce this innovative technological initiative for bringing about revolutionary improvement in quality of milk collected in DCSs.
This system has several advantages such as elimination of mastitis in mulch animals and improvement of productivity.
The milk from milking Machines, collected through Automatic Computerized Milk Collection Units is chilled directly in Bulk Milk Coolers. This chilled raw milk, untouched and unadulterated by human hands, has very high microbiological quality, comparable to international standards.
This high quality milk is being utilized for manufacturing high quality value added milk products, for both domestic as well as international markets.
Other Clean Milk Production (CMP) Initiatives include: -
Training of milk producers on modern dairy husbandry practices and CMP,
Providing SS utensils, Antiseptic solutions for udder cleaning on pre and post milking, etc to producers.
Training to DCS staff and officers of the Unions on CMP.
Replacing Aluminum milk cans and collection vessels with SS –304.
Posters, documentary films and booklets on Clean Milk Production
RESEARCH AND DESIGN
Research & Design
MEANING
A research design is a logical and systematic plan prepared for directing a research study. It specifies the objectives of the study, the methodology and techniques to be adopted for achieving the objectives.
It constitutes the blue print for the collection, measurement at analysis of the data. It is “the plan, structure and strategy of investigation conceived so as to obtain answer to research question; the plan is the overall schemes are program of research.” A research design is the program that guides the investigator in the process of collecting, analyzing and interpreting observations….
Marketing is a social and managerial process by which individual and groups obtain what they need and what through creating offering and exchanging products and value with others.
According to American Marketing Association:-American Marketing Association defines marketing. “Marketing is the process of planning and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.
“Marketing is an organizational function and a set of process for creating, communication and delivering value to customers and for managing customer relationship in ways that benefits the organization and it stakeholders.
PETER DRUCKER
Marketing is the catalyst for transmutation of latent resources of desires into accomplishments and the development of responsible economic leaders and informed economic citizens.
NATURE OF MARKETING OBJECTIVES Define marketing and describe its primary nature. Show how marketing bridges the gap between producer and
consumers. Online the functions of marketing. Demonstrate the scope of marketing. Contrast activities in each of the three orientations of business in
the marketing domain. Position marketing as one of the basic business functions.
OBJECTIVES OF THE STUDY
The principle objectives of the study is to get inter relate the theoretical aspects with practical things that are moving industry, and studying the organization as whole.
Some Important objectives of the study are….
To get the practical exposure in the corporate world. To have a proper balance between the theory and practical
knowledge. To study origin, growth, vision, mission and status of the
organization. To study the functional departments exist in the organization. To evaluate the effectiveness of the organization. To study the problem areas in the organization. To provides some valuable suggestions to improve the efficiency
in the organization.
Mandya milk union ltd.
Mandya milk union was registered in the year 1987. The product dairy,
Gejjalagere was then managed by Mysore dairy. In the year 1988,
The product dairy, gejjalagere was handed over to Mandya milk union.
Manmul with its headquarters at Gejjalagere has got liquid milk plant of
2.5 lakh liters capacity and a powder plant of 10 MT capacities per day
Through the assistance of NDDB. It has two chilling centre at
Nagamangala and k.r pet.
The dairy has a spread of 47 acres of land at Gejjalagere and at KR Pet and Nagamangala.
Manmul was a part of Mysore and Tumkur milk union till 1987.
In the year 1988 union started marketing about 5,000 liters per day which gradually extended to about 15,000 liters.
There came a boom through the advent of milk marketing in Bangalore city from 1993.
As on today the milk sales is about 2.20 lakhs liters per day (1.24 lakhs liters in sachet and 0.35 lakhs liters in bulk) with annual turnover of Rs.65 corers alone on this account out of the total Rs.100 corers turnover through the sales including milks products like skim milk powder (SMP) , Butter, Ghee, burfi, lassi, curds etc. once manmul got hold of the Bangalore marketing, it has steady and continues profits from 1994-1995.
The philosophy of union is to eliminate middlemen and organized institution to be owned and managed by the milk producers themselves,
Employing professionals and to achieved economies of scale to ensure maximum returns to the milk producers.
PROBLEM IDENTIFIED
There was a dispute between the management of union and the product dairy employees association during the month of July-august 2006.
The management decided to recruit the graduated people for the organization by replacing the contract workers who are working for the organization from the last two decades.
These made the employee association to call for the strike against the management.
The association was not even issued any prior notice according to industrial dispute act.
They even raised 12 other demands in favor of employees .the strike was continued for 4 days.
Finally the dispute came to end with some rounds of talks between the management, govt. representatives and the employees association.
SOLUTION FOR THE PROBLEM
Since manmul is working under the supervision of KMF and state govt, lots of political interferences appears in all matter.
Instead of bringing political interferences for every matter, it is better to have a separate HR department which is headed by HR manager who is capable to solve any kind of HR problems.
Having a separate HR department helps in following matters:
Having a proper human resource planning. Changing and having a proper and effective recruitment policy
without any political interference. Good and effective selection process. Good orientation to the new employees. Proper human resource development through different training. Performance appraisal for a particular interval. Motivating employees and workers through different perks and
fringe benefits. Maintaining good relationship with the employees association.
The organization (MANMUL) fallows the centralized pattern of decision making. So it is better to have a decentralization of decision making so that anybody at any position in the organization gives his opinion and suggestions for effective working of the organization.
My opinion about the above mentioned case is that, workers can be given some benefits for their voluntary resignation for the job.
If the worker is really efficient, he can be appointed as a permanent employee of the organization by reducing the number of employees to be newly recruited.
Company PROFILE
Company PROFILEKarnataka co-operative Milk producers’ Federation Limited (KMF)KMF is the Apex Body n Karnataka representative dairy farmer’s co-operatives. It is the third largest dairy co-operative amongst the dairy co-operatives in the country. In south India it stands first in terms of procurement as well as sales. One of the core functions of the federation is marketing of milk and milk products. The brand ‘NANDINI’ is the household name for pure and fresh milk and milk products.
KMF has 13milk unions throughout the state which procure milk from primary dairy cooperative societies (DCS) and distribute milk to the consumers in various TOWNS\ CITIES\ RURAL markets in Karnataka.The first ever World Bank funded dairy development program in the country started in Karnataka with the organization of village level dairy co-operatives in 1947.
The AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from World Bank, operation flood 2nd and 3rds. The dairy co-operatives were established under the ANAND pattern in a three tier structure with the village level dairy co-operatives forming the base level, the district level milk unions at the middle level to take care of the procurement, processing and marketing of milk and the Karnataka
milk federation as the apex body to co-ordinate the growth of the sector at the state level.
Coordination of activities among the union and development market for milk and milk products is the responsible of KMF. Marketing milk in the respective jurisdiction is organized by the representative milk union. Surplus /deficit of liquid milk among the member milk union are monitored by the federation.
While the marketing of all the milk products is organized by KMF, both outside the state, all the milk and milk products are sold under a common brand name NANDINI.
List of co-operative milk producers societies union:
Bangalore milk union Belgaum milk union Bellary milk union D K milk union Dharwar milk union Gulbarga milk union Hassan milk union Kolar milk union Mandya milk union Mysore milk union Shimoga milk union Tumkur milk union
Mandya milk union ltd.
Mandya milk union was registered in the year 1987. The product dairy, Gejjalagere was then managed by Mysore dairy. In the year 1988, the product dairy, Gejjalagere was handed over to Mandya milk union.
Manmul with its headquarters at Gejjalagere has got liquid milk plant of 2.5 lakh liters capacity and a powder plant of 10 MT capacities per day through the assistance of NDDB. It has two chilling centre at Nagamangala and k.r pet. The dairy has a spread of 47 acres of land at Gejjalagere and at KR Pet and Nagamangala.
Manmul was a part of Mysore and tumkur milk union till 1987. In the year 1988 union started marketing about 5,000 liters per day which gradually extended to about 15,000 liters.
There came a boom through the advent of milk marketing in Bangalore city from 1993. As on today the milk sales is about 2.20 lakhs liters per day (1.24 lakhs liters in sachet and 0.35 lakhs liters in bulk) with annual turnover of Rs.65 corers alone on this account out of the total Rs.100 corers turnover through the sales including milks products like skim milk powder (SMP) , Butter, Ghee, burfi, lassi, curds etc.
Once manmul got hold of the Bangalore marketing, it has steady and continues profits from 1994-1995.
The philosophy of union is to eliminate middlemen and organized institution to be owned and managed by the milk producers themselves,
Employing professionals and to achieved economies of scale to ensure maximum returns to the milk producers.
Product profile
Milk
Full Cream Milk:-
It is whole some and healthy. Packed with energy and nutrition that is essential for growing kids. It makes them stronger from with in and keeps them active and healthy.
Toned Milk:-
A perfect blend of good health and whole some taste. It is an ideal choice for people in search of nutritive balanced diet that doesn’t compromise on taste. It is the right way to fit and fine. Jolly and cheerful.
Double toned milk:-
Tasty and nutritious, with low fat content. A dream come to specially for all calorie conscious people who love the taste of milk but are vary of its cream, content. Double toned milk compliments your daily work out perfectly.
Standardized Milk:-
Tasty and malaidar enjoy its richness as it has balanced amount of cream- neither more nor less- just straight affordable price.
Skimmed milk:-
In skimmed milk as much as fat is removed yet continues to supply all the nutrients that full cream milk does.
Flavored milk:-
Manmul dairy flavored milk captured all the goodness of manmul dairies pure and fresh milk combined with magic of special flavors.
Made from double toned milk, and available in kesar ealaichi, chocolate and vanilla flavors- this drinks are light and refreshing and captured the great taste of the unique flavors without being heavy or too filling.
This tasty drink. Available in 300ml and 500ml are perfect for any occasion.
It is longer shelf milk variant. It is treated with ultra high temperature and it has a shelf life of 60 days without refrigeration available in 500ml pack.
Homogenized Milk:-
It is pure homogenized and pasteurize. It is available in 500ml packs.
GHEE
Ghee made from buffalo milk and has every quality that you would look while purchasing.
The formulation developed delivers superior flavor and aroma. All the packs are carefully packed to ensure that the rich flavor and aroma of manmul dairy ghee gets sealed in and remain intact for you to savers and enjoy.
Curd
Curd is dairy product obtained by curdling (coagulating) milk with rennet or an edible acidic substance such as lemon juice or vinegar and then draining off the liquid portion (called whey).
Milk that has been left to sour (raw milk alone or pasteurized milk with added lactic acid bacteria) will also producers curd, and sour milk cheese is produced this way.
The increased acidity causes the proteins (casein) to tangle in to solid masses, or “curd”. The rest which contains only whey proteins is the whey. In cow’s milk 80% of the protein is caseins.
Curds product varies by region by and includes cottage cheese, quark (both curdled by bacteria and sometimes also rennet) and paneer (curdled with lemon juice). The word can also refer to a non- dairy substance of similar appearance or consistency though in these cases a modifier or the word curdles is generally used (e.g. Bean curd, lemon curd, or curdled eggs).in 200 gm and 500gm sachet.
Butter:-
It is delicious, creamy and so easy to spread available in 100 and 500 gm packs, manmul dairy butter is produced under totally hygienic condition using manmul dairy whole some milk.
Butter is dairy product made by churning fresher or fermented cream or milk it is used as spread and a condiment, as well as in cooking application such baking, sauce making, and frying.
Butter consists of butter fat, water and milk proteins. Butter remains a solid when refrigerated but softens to spreadable consistency at room temperature, melts to thin liquid consistency at 32-35 C (90-95f).
The density of butter is 911kg/m3 (0135.51b/yd3). It generally has pale yellow color, but varies from deep yellow to nearly white. Its color is depend on the animal’s feed and is commonly manipulated with food colorings in the commercial manufacturing process, most commonly annatto or carotene.
Production department
The Mandya dairy collects milk from villages through co-operatives. There are 1150 co-operative societies producing units.
Dairy Wing
Milk reception dock
Milk reception collects the milk from the co-operatives. The raw milk comes in vans containing milk cans enter input dock.
The cans go one by one through a machinery track, workers check the cans, and writes the number of liters of milk contained in the cans.
Quality control
Quality control mainly concern with the quality check up of each milk collected from co-operative societies.
The quality control department takes the sample of the milk and its analysis the fat and divides it,
Milk processing
The collected raw milk is chilled in the system at 5c for bringing down the temperature of atmospheric temperature. After chilling, the milk is transferred to the silos (container) and milk standardized. After milk standardization, the milk is drawn from silos for pasteurization process, the milk is heat to 75c, and then it is stored in silos again. The pasteurized milk is transferred to cream separation tank. Here, the cream is separated and stored in cream storage tank. The cream separated milk is passed to further process.
Separator
In separator fat % is removed from milk (raw milk contains 4.3% of fat and dairy milk packet contains mainly 3%of fat). In separator, it separates milk on fat basis like toned milk 3% fat and 8.5%SNF.
The required quantity of standardized and pasteurized milk is transferred for further production of milk products like butter, ghee, milk powder, peda ext.,
After the above mentioned process is completed the milk and milk products goes to packing section. They are packed and dispatched according to the shifts.
To grow in to model co-operative milk union in the country by accomplishing the mission of assuring rural prosperity in the lives of member milk producers in Mandya dist.
As a part of long term growth oriented development strategy, the union is expanding rapidly by implementing several infrastructure projects and schemes. Union can play an important role in assuring rural prosperity in the lives of the milk producers.
OBJECTIVES
To encourage rural farmers to engage in dairy farming and producing more milk and good quality of milk at least cost.
To provide assured and remunerative market for the milk produced by the farmer members.
To provide good quality of milk and milk products to the people of urban area by scientifically from processing the milk obtained from rural area.
To create harmonious environment for the human resource of the union can perform at its best, being a communication bridge between producers and consumers.
To build village level institutions co-operative sector to manage the dairy activities. In order to fulfill these objectives, the union is constantly engaged in working towards improvements of the business as well as the welfare of the producer members. This has resulted in greater performance on commercial as well as institutional fronts.
COMPETITORS OF MANMUL
After liberalization, entry barriers in the dairy Industry eased for new entrants.
Many private players enter and exit the market very often. The main competitors for MANMUL products are Arogya, Heritage, Jercy, Dodla, Thirumala, Real fresh, Milk way, Neelgiri, Ujwal. Plans of major companies like reliance, ITC to enter in to milk market in future.
FUTURE PLANNING
TO active more co-o operative societies. To procure more than 4.0lakhs kilograms of milk. Introduced new products. The vision 2011 with the help of NDDB. Complete computerization of the activities of the union. Establishment of more bulk milk coolers. Modernization of main dairy. Extent the plant with the help of NDDB. Increasing the plant capacity from 2, 00,000 LPD to 5,
00,0000LPD.
FINANCE DEPARTMENT
Function
The finance department in Mandya dairy works as a blood for the whole plant. The main function of this department is to take care of bills passed and bought to prepare income and profit and loss account statement and also the annual balance Sheet.
The finance department get funds extremely only from the NDDB.they provide fund only for expansion purpose and Purchase of fixed capital like machinery, plant and building etc, on long term loan basis. The working capital is provided by the producers).
The capital structure of the union consists of share capital collected from formers. in the form of shares. The authorized capital as on 31/3/10 of the dairy is 447.04 lakh. They do not have any subscribed capital.
Every day the cash book is maintained to record the cash receipts and cash payment of the day.
The cheques received are also entered in the receipts books later and information is feed into the computer to record. Tally software is used in accounts. For every payment to societies is made on weekly basis.
The staff salary is made on monthly basis according to attendance.
Analysis and interpretation
Analysis and Interpretation.
Mandya milk union was registered in the year 1987. The product dairy,
Gejjalagere was then managed by Mysore dairy. In the year 1988,
The product dairy, Gejjalagere was handed over to Mandya milk union.
Manmul with its headquarters at Gejjalagere has got liquid milk plant of
2.5 lakh liters capacity and a powder plant of 10 MT capacities per day
Through the assistance of NDDB. It has two chilling centre at
Nagamangala and k.r pet. The dairy has a spread of 47 acres of land at
Gejjalagere and at KR Pet and Nagamangala.
Manmul was a part of Mysore and tumkur milk union till 1987.
In the year 1988 union started marketing about 5,000 liters per day which gradually extended to about 15,000 liters.
There came a boom through the advent of milk marketing in Bangalore city from 1993.
As on today the milk sales is about 2.20 lakhs liters per day (1.24 lakhs liters in sachet and 0.35 lakhs liters in bulk) with annual turnover of Rs.65 corers alone on this account out of the total Rs.100 corers turnover through the sales including milks products like skim milk powder (SMP) , Butter, Ghee, burfi, lassi, curds etc. once manmul got hold of the Bangalore marketing, it has steady and continues profits from 1994-1995.
Easy availability of Nandini Products in the market:
SL No Parameters No. of Respondent Percentage of Respondents
1Yes 90 90
2 No 10 10
Total 100 100
Analysis:
From the above table it is seen that 90% of the respondents says it is available in the market easily and 10% of the customers says not available in their locality.
Easy availability of Nandini Products in the market
Interpretation:
From the above analysis, it is found that majority (90%) of the respondents says that Nandini Products are available easily in the market.
The Table showing from where do the respondents was purchase the Nandini milk and products .
Yes NO1 2
0
20
40
60
80
100
120
140
160
180
Percentage o f RespondentsNo. of Repondents
SL No Parameters No. of respondentsPercentage of Respondents
1 Agents 33 332 Dealers 13 133 Open market 40 404 Others 14 14
Total 100 100
Analysis:
The total of 100% respondents 33% of the respondents are purchase the Nandini milk from agents, 13% of the respondent are purchase from dealers, 40% of the respondents are purchase from open market and other 14% of the respondents like loose vendors.
Agents33%
Dealers13%
Open market40%
Others14%
No. of respondentspurchase the Nandini milk and products
Interpretation:
From the above analysis it is found that most (50%) of the respondents rated the Nandini as very good.
Rating of the Nandini products on the basis of prices
Agents33%
Dealers13%
Open market40%
Others14%
No. of respondentspurchase the Nandini milk and products
Highly Priced
Reasonable
Economic
1
2
3
40 55
5
40
55
5
Rating of the Nandini products on the basis of prices
No. of Respondents Percentage of Respondents
Analysis:
From the above table it is seen that 40% of the respondents feel the Nandini products are highly priced, 55% of the respondents feel reasonable and 5% of respondents feel Nandini products are priced economically.
Highly Priced
Reasonable
Economic
1
2
3
40 55
5
40
55
5
Rating of the Nandini products on the basis of prices
No. of Respondents Percentage of Respondents
MANMUL’S Monthly milk sales Abstract for the period 01-APR-2010 to 31-MAR-2012.
Mar/11 Apr/11 May/11 Jun/11 Jul/11 Aug/11 Sep/11 Oct/11 Nov/11 Dec/11 -
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
Sales(in Liters) , 34,87,714
Sales(in Liters)
Monthly Sales
In R
s.
SWOT ANALYSISStrengths
1. Market leaders.
2. Provides excellent veterinary, AI, vaccination, extension facilities, feeds and fodder seeds supply ext., in the field, which cannot be thought off by any private operator. Hence earned lot of goodwill from member producers, who patronize the union throughout the year.
3. Has earned the distinction of not failing to deliver the milk to market on time throughout the year. There are days with no powers supply, no water supply, but there is no day without NANDINI milk supply.
4. “NANDINI” is a trusted household brand name.
5. Highly remunerative and timely payment to producers.
6. Economies of scale – more volumes leading toeless cost on each unit sold, which is difficult to match by anyone in the market.
7. Union is in good financial position, even with least margin between procurement price (one among the highest in the country and sale price (one among the lowest in the country)
8. Good institutional support from KMF,NDDB,NCDFI,ext
WEAKNESSESS
1. Lack of flexibility in deciding about its operation. No authority over issues like pricing, offering volume discounts ext.
2. No replacement policy, resulting in safe indenting by the agents.
3. Inter- union competition in same place.
4. Organizational structure does permit incentives\reward For good performance among DCS, sales agents, material suppliers and equality employees for quality performance, achieving volumes, ext.
Opportunities
1. Since the Mandya district is under Cauvery basin, perennial greens are available to the cattle, the management by the women farmers is highly organized, coupled with existence of good number of cross bred milk animals with a reasonable lactate
periods.
2. MANMUL has got eternal Bangalore market which can be extended very comfortably to 1.5 lakh liters market in couple of seasons.
3. Because of logic location MANMUL has perennial supplies of milk to Tamil Nadu and Kerala.
4. At much better price than any other milk unions’ price obtained in Karnataka.
5. Institutional markets, bakeries, hotels, Etc., are not fully tapped and these can captured preferable by direct marketing.
6. Market milk share of unorganized sector still remains to be tapped.
7. Diversification into Milk production like Peda, Burfi, Lassi etc.,
8. exploit the Human Face”, by positioning in the market as an organization with social responsibilities of serving the milk produced by paying remunerative price and serving customer by offering hygienic quality product at a reasonable price throughout the year.
Union is not in the business to maximize the profits as in the case of private dairies and is acting as price stabilizing force in the market. Projecting these to the customers will reinforce the positive image of the organization in customers mind as a caring organization which service to them as its motto.
Threats
1. After liberalization, entry barriers in the dairy industry eased for new entrants.
2. Private dairies procure milk at lowest cost from producers and sell milk resorting to unethical trade practices.
3. It is a marketing war in which union has to fight by rules and other i.e., private dairies do not fight by rules. Hence, there is no level playing field for organization with social responsibilities to compete with organizations with purely profit motive.
4. Some private dairies are selling homogenized milk, which appears rich. The union cannot homogenize all its huge quantity of milk being sold due to lack of homogenizing capacity and increase in processing cost.
5. Plans of major companies like reliance, ITC to enter in to milk market in future.
6. the competition from co-operative like AMUL,VIJAYA, AVIN…etc, for the products like SMP, butter, ghee,etc.,
GENERAL Observations,
SUGGESTIONS AND
RECOMMENDATIONS
Observations:
MANMUL acts as a bridge between producers (farmers) and consumers.
The company has a good track record of performance from the last decade.
Manmul has maintained good relationship with producer (formers).
The company has maintained and dedicated work force.
It owns a good market share of 75% (approximate) in Karnataka.
Provides excellent working environment.
The dairy premise is all ways clean and need.Excellent canteen facility where in hygiene and nutritious food is provided to employees and workers at subsidized rate.
The company conducts various program to impart knowledge to its employees to its employees and workers.
It encourages the students to take projects, so that they can get a partial knowledge of the company’s different functionaries.
Suggestions and recommendations
The company should arrange the brand awareness compaingns and exhibitions.
3,5and10 liters sachets should be introduced to attract institutional market like hotels, hospitals, factories and other major institutions.
Retailers’ sales margin should be increased to motivate them to push the NANDINI products more.
Advertisements in local newspapers cable television network should be effectively used.
Business to business and business to consumers’ website should be created to enhance online marketing.
Separate HR manager should be appointed to know the problems of workers and to solve them.
Training should be given to retailers in marketing and relationship building activities.
Still better promotional strategy should be used to position the products in the market.
To provide sign board within the dairy to facilitate the easy identification of the departments.
Job rotation should be done frequently to workers especially in the plant, so that they are realized from boredom of work, and which also motivates them to acquire additional skills.
To build the teams of empowered employees.
To provide employees with special training such as job enlargement, job enrichment and empowered teams, so that the productivity is increased.
To stay competitive the company should adapt new advanced technologies.
CONCLUSION
Conclusions
Indian dairy sector contribute a large in agricultural gross domestic products, since milk is one of the basic need for the people.
Mandya dairy, a service oriented organization as entered households of Mandya city and some parts of Bangalore rural and urban area with efficient products and service.
The customers can take in to confidence so that it helps dairy with the better insights even though KMF is facing a very strict competition from the competitors like heritage, arogya, dodla and swastika.
It has strong brand image and also better distribution network. This study clearly inducts retailer’s opinion, this is no stage complement towards the milk marketing of MANMUL and how services can be improved.
After liberalization, many foreign companies have entered in to Indian market, so, MANMUL (KMF) should strengthen all is resources to face their competitors and adopting itself to changing scenario.
The Nandini is a house hold name in Karnataka and other neighbor states. So, all efforts should be continued to build up on this important asset.
Bibliography
BIBliograhpy
Annual Reports of MANMUL
Marketing Management
Production Management
Business Research Method
www.nandiniproducts.comwww.nandinimilk.com www.indianmilk.com www.indiandairy.com
List of co-operative milk producers under Karnataka Milk Federation:
Inplant Training-MYMUL
ADVANCED MANAGEMENT COLLEGE BENGALURU - 56008318
ORGANISATION STRUCTURE Board Of Directors
