project

INTRODUCTION

Consumer Satisfaction Heritage Foods India Limited

INTRODUCTION

DAIRY SCENE INDIA

Co-operative dairying in India is over 45 years old of the total milk. Produced in India, about two thirds is buffalo milk land still larger proportion of buffalo milk is in the processed stage .The milk processing industry gained momentum and repeatability in the then Prime Minister of India, the Late Lal Bahadur Shastri, is over two and a half decades old. The operation flood programme is 22 years old, and has entered phase 3.The milk sector is the second largest contributor to the agricultural economy in terms of produce. In 1990-91, the co-operative collected nearly 10 million and marketed 8 million liters of liquid milk per day.

The annual milk production of India is expected to increase from 5.37 crore tons in 1991 to 5.64 crore tons (anticipated) in 1991-92. Of this production about 45% 1used for fluid consumption, the rest is converted into products such as ghee 33%, dali 8%, butter 6%, kova 5% and cheese, ice-cream and milk powder 3% .It should be pointed out that most of the milk is channeled through the local vendors or consumed directly, the processing of milk increased from 22, 000 tons (1970) to, 1, 65000 tone (1992). India has 25% of total animal wealth of world; however the milk production is only 6.5 %. This miserable situation is due to low productivity of animals in India .The estimated demand for milk is 64.4 million tons by A.D. The agricultural contributes 46% of national income; the dairy industry contributes 10% of agricultural income, which amount to 5% of the national income.Operation flood Programmed in India

The objectives of operations flood were to replicate Anand. The state government could use their own funds to develop dairying in which ever way they choose, but the additional funds available under operation flood were to be used only replicating Anand '

Operation flood, the larges development program undertaken in the world, was initiated closely on the heels of green Revolution the country, against the backdrop of huge surplus of milk production in the highly developed milk producing countries in the west and winding per capital milk availabity at home. According to the agreement signed by the world food programme (WFP) AND Government of India, the WFP will arrange to supply 126000 metric tons of butter oil, which the corporation will handle on behalf of government. Utilization of these commodities would generate funds estimated at Rs. 954 millions during the projected period. These funds are to be invested in the plan of operations agree WFP and government.

By 1968, NDDB has formulated the first phase of operation flood, which aimed to capture for public dairies a commanding share of the milk market in the four metropolitan cities of Bombay, Delhi, Calcutta and Madras. It also aims at speeding up the dairy development by increasing milk production and procurement in rural areas, which supply milk for four cities

In order to achieve the desired objectives of the project, the following order of implementation has been adopted.

1. Quick expansion of urban handling capacities by expanding the dairy in Delhi, Bombay, Calcutta and Madras and by setting up new liquid milk plants. So the total capacity of the organized sector would be increased from .1million liters a day in the four major cities.

2. Supply of WEP commodities skimmed milk powder on butter oil for production of recombined milk to speed up full utilization of expanded capacities.

3. Setting up rural milk producer owned co-operative organizations to produce, process and market milk on the had and to market technical inputs for milk production on the other.

4. Implementation of milk production enhancement programs with long term objectives of achieving self sufficiency in milk

5. Establishment of rural feeder /balancing dairies to coup existing milk available to replace combined milk produced by use of WFP.

6. Development of the basic transportation and storage facilities to facilitate regional and seasonal and seasonal balancing of milk supply and demand.

7. Resettlement of the milk animals from the four cities in the rural areas as result of economic pressure created in urban areas by large outputs of milk from city dairies.

Current dairying scene in India

With the deli censing of the dairy industry in the new industrial policy 1991, the demand for the raw material -liquid milk -for conversion on to high value products such as cheese, butter and chocolates would increase, leaving very little to drink. Private companies may not be able to proved facilities to milk producers as the NDDB has through the OFP. But their contribution to higher production is indisputable. Apart from the off take of produce, private companies helped milk procedures through extended service and health care facilities for animals. However, their scale of assistance is limited to the extent of their needs, leaving the NDDB to ensure a steady supply of milk at a reasonable price. With more dairy units expected to be set up by multinationals and big Indian companies, small dairies units expected to be set up by multinationals and big Indian companies, small dairies might be lured by the prices offered. Already 250 applicants plan to add to the existing capacity. Most of them are for the production of milk powder, baby food, butter, cheese and ghee. About 700 memorandums were submitted For the establishment of new dairy plants .Two proposals to produce import oriented milk products like lactose on case in were already given clearance by the government. Though India stands first in having milt animal, it only stands third in processing milk.

Proposals are being made to decanally dairy products which are to be exported .At present the NDDB is carrying out the export activities of milk products. During 1992 skimmed milk powder worth 30 lac dollars had been exported. This year it is anticipated to 100 lac dollars worth exports .The decanal zing policy is too be adopted, the exporting firms should oblige the norms and conditions laid by the NDDB. NDDB has decided to establish a trading company at Singapore to improve Indian Exports of milk products and oilseed cakes .Too meet the export standards of milk products it is proposed to establish two big dairies in Gujarat with an investment about Rs .100 crores.

INDUSTRY PROFILE

DAIRY INDUSTRY

The programmer of dairy industry was initially maintained with commendable help of the United Nations International Childrens Emergency; fund and freedom from hunger

campaign of U.K. these organizations contributed a lot in the establishment of dairy units in Andhra Pradesh during the period 1967-1969.

The milk producers have been faced with lot problems in the process of production and marketing of milk namely improper transport facilities, poor technology and absence of organized system of processing marketing and pricing. It was at this context that the Government of Andhra Pradesh has viewed to constitute a dairy Development Corporation to safe guard the interest of milk producers and ensuring adequate supply of fresh milk at a reasonable price to the urban consumers. As a result the APDDC came into existence on 2nd April 1974.

CO-OPERATIVE FEDERATION

To implement Operation Flood 2 programmer through active Involvement of producers in organizing milk production, procurement processing and marketing on three tier cooperative structure as per the national policy of Government of India, Andhra Pradesh Dairy Development Cooperative Federation was constituted in October 1981. The three-tier system includes primary village level dairy cooperative societies, cooperative union at district milk shed level and a state level federation.

For dairy development programmer in Andhra Pradesh the Indian Dairy Cooperation offered financial assistance of 78.51 crores with 30% of grant and 70% on loan basis. The National Dairy Development Board for implementation of Operation Flood 2 programme identified sixteen districts out of 23 districts in the state. With the implementation of operation flood 2 programmers in Andhra Pradesh, dairy development has gained momentum providing a trust to eradicate the poverty and unemployment in rural areas and brought greater awakening and confidence among producers to manage their own affairs through dairy cooperative of Anand Pattern. The dairy development in Andhra Pradesh is presented in the following table.

The promise for Indias Dairy development lies in recognizing the need for a substantial increase in production of liquid milk. Presently, milk products fetch relatively higher price than liquid milk and this has directly boosted he output of value added products. Higher demand and better prices than the western products such as tangle, Butter, vogurt, cheese, ice cream, and milk powder. However the importance of liquid milk and its influence on the market cannot be underplayed since it meets a basic need of lage particularly since 1985 the liquid milk has witnessed and upswing in price. For the development of any activity a rational pricing policy is ital. This is more so in case of daring where a positive price policy acts as a catalyst for growth by motivating the farmer to segment milk production line this four key determining factors are. The price farmers should recessive for milk.

DEMAND FOR MILK

With the Anticipated growth of purchasing power in urban areas, the demand for milk is estimated to rise substantially according to one estimate; it is likely to be 97.7 million tones by 2002 AD as against 35.01 million tones in 1982. The information regarding the population, its economic demand and nutritional demand is given in the following table.

Today the consumer repay is chasing many more processed food even in rural areas this trend is likely to faor packaged milk and milk products that offer multiple benefits of convenience hygienic and good value for the money spend on them. So change in the product mix is emerging the rural market is expected to grow much faster than the urban market in terms of market shows uncertain milk products. The rural folks are now purchasing more placed milk products making efforts to make them at horn. Already the share of milk sweets is showing a slow increase in the total product mix. There is scope for exports of milk products in developing countries, which represents a major challenge.

The dairy sector needs to study the direction and growth in milk markets to develop an ocher strategy for making dairy enterprises viable. Where they are not and more wherever there are possibilities future targets in marketing evolve there from.

COMPANY PROFILE

Heritage foods India limited (HFIL) was incorporated under the companies Act 1956 as public limited companies 5 June 1992. The promoters have long and varied experience in

Administration as well as management of business.

Heritage foods India limited entered the capital market on 17 November 1994 with an issue of 65, 00,000 equity shares of Rs.10/- each at part to the India investing public. The issue was over - subscribed by about 54 times, an indication of the rich confidence of the promoter who enjoy with the investing in community.

The public issue aggregating to Rs.65 million was intended to part- finance the company's integrated diary project costing a total of Rs.147.50 millions, which has been fullyt implanted.

Heritage foods India limited is currently in the business. of procuring milk from dairy farmers, chilling, pasturing and packaging the same for marketing to consumers in the metropolitan cities of Channai, Bang lore, Hyderabad and 'Vishakapatnam in south India. The company has already established a strong brand equity and stable retail distribution network. The liquid milk is processed at six mini dairies set up; by the company at different locations i.e., 4 centers in Chittor District and one each at Vishakapatnam and Hyderabad. Further they have established 3 more centers in North Arcot district of Tamilnadu. A process plant is also being established at Banglore city, which is one of the biggest markets for liquied milk.

The market share of Heritage Foods India Limited is cow Ghee 30% in Tamilnadu. 5% in Andhra Pradesh and 15 % in Kerala nill percentage in Karnataka. In case of milk 30% share in chennai from private dairy and 10 % market share having from corporation.

The company-managing Director is Mrs. N Bhuneswari. It is having mainly 9 branch offices and 14 sub-plants. The Head Office of the HFIL is at Hyderabad (A.P)

Heritage food India limited Branches are shown under:

Bhuvaneswar

Indore

Chennai

Vishakapatnam

Kerala

Kolcutta

Banglore

Hyderabad

Tirupathi

Heritage foods India limited sub plants are as follows:

Main plant - Chandragiri (all by products are manufactured here only)

Sub plant - Chitoor, Madanapalle, Piler, Santhipuram, SanthaMagalore, Bayyavaram,

Tiruvannamalai, Uthangaraj, Ongle, Muppuvaram, Narketapalli, Darsi.

Heritage Foods also enjoys excellent reputation as a fair and reliable of raw milk from dairy farmers procuring about 3.6 million liters per month at present.

Further, the company's main dairy complex "GOKUL" in chittoor district of Andhra Pradesh has already commenced commercial production for production of value added dairy products like skim Milk powder, Butter and Ghee. GOKUL incorporated state of the art technology in the manufacture of the dairy products and the plant has been commissioned at cost of RS.140 million with a capacity to process 2,00,000 liters per day.

Heritage believes that Governance is1An ability to operate in a self- drive, self- regulated, self-disciplined and self - assessing mechanism with a social conscience.

2. A voluntary mechanism - in which there is free, independent and unbiased monitoring

3. Operating in a congenial work environment where the communication is effective,

4. with a higher degree of transparency in management of affairs and in financial and non- financial corporate disclosures.

5. Which realizes the Companys accountability to all stakeholders, especially to minority share holders and ensures fairness in dealing with them.6. An on- going corporate transformation requiring openness to new ideas in a climate where there is diversity of views; heightened awareness and people seek change.

Heritage feels the need for corporate Goverence not because it is mandatory, such Governance is in the interests of the company, as it would not only increase and improve the rapport between Board, Management, Employees, Customer, Shareholders and other stakeholders, but also it will enhance mutual confidence and trust among them. The structure, processes and practice of governance enable focus on the good corporate culture while simultaneously facilitating effective management of the business.

In this emerging new context of the India milk sector, the need to further improves heritages potential in terms of the scope.

> To enhance supplies to meet the growing demand.

> To enhance productivity of the cattle and the capacity of farmers.

> To establish and integrate the cold chain, packaging and transportation facilities for more milk in unadulterated form from village collection sites to the length and breadth of the company.

>To take advantage of the international market under the regime Reduced subsidies are multi-faceted and necessary.

Quality:

"First dairy in southern India to be accredited with the ISO 9002:1994 certification"

Heritages soul has always been imbibed with a unwritten perpetuail commitment to itself, to always produce and provide quality products with continuous efforts to improve the process and environment. Adhering to its moral commitment and its continous drive to achieve excellence in quality of MILK, Milk products & systems, Heritage has always been laying emphasis on not only reviewing & re- defining quality standards, but also in implementing them successfully. All activities of processing quality control, purchase stores, marketing and training have been documented with detailed quality plans in each of the departments.

Heritage is the first dairy company in southern India to have been awarede the ISO 9002 - 1994 certification for implementing quality systems in processing, packing & selling of liquid milk at its plant at Narketpalle, sales office & registered office at Hyderbad.

Today Heritage feels that the ISO certificate is not only and epitome of achieved targets, but also a scale identify & reckon, what is yet to be achieved on a continous basis. Through it is a beginning, Heritage has initiated the process of standardizing and adopting similar quality systems at most of its other plants." the crux of all activity, accredited with the ISO 9002 certification for implementation of quality systems & standards"

A modern transportation fleet complements the plant facilities, which not only humbly begin at the milk procurem, ent agents, carry fresh milk to the processing plants, then to the packing plants, where necessary but also finally deliver milk & milk products to marketing areas located in the south, north and eastern India.

GROWTH OF THE COMPANY"Heritage is passionate about growth and compassionate about people"

Adorned with the guiding spirit of the professional management, dedicated managers, and the able support by a team of responsible, qualified and experienced staff, sustaining growth and realizing drems is real at heritage. Over the years, heritage has built for itself stimulating work culture that empowers its people, promotes team building and encourages new ideas the focus on constantly raising the levels of competency and capabilities and providing the necessary learning inputs and a conducive environment for both professional and personal Growth.

Heritage builds the strength of core assets; people; who are always on a continous improvement path with on ultimate aim to add value to their intellectual and knowledge resources and to develop an environment, which fosters performance.

PRODUCT PROFILE

MILK POTENTIAL

Milk is the only natural product, which is a complete source of food. its nutritional potential is unsurpassed by any other food used by man. The proteins in milk are ideal in quality and balanced to satisfy human amino-acid requirements. The contents of minerals and vitamin are unique; not only in proportion but in quantity also except for vitamin C and iron, milk provides all the nutrients that are essential for man s growth and development.

According to Prof .N.J Ropeman of Harvard Medical School. Milk is the only article of food that family represents the complete diet. For nutritional development milk has no substitute .Man has yet to devise a product superior to natural milk for presenting a correct malnutrition. Milk is also a cheep source of animal protein It is on this account milk became an integral part of Indian food to both vegetarians as well as non vegetarians This is true for milk as well as its by products.

One should note that it is protein and the other essential micronutrients such vitamins and mineral which from Solidsm not Fat (SNF) part of the milk, that is important in milk than fat, to weigh the nutritional value of the milk.Milk constituents Milk is the characteristic secretion of the mammary glands of all the female mammals. According to the prevention of food Adulteration Act (PFA), Milk is the secretion derived after complete milling of health milk animals. It may however be added for clarity that the secretion obtained with 15 days before and 10 days after calving, or such longer period as be necessary to render the secretion cholesterol free, is considered as milk.

Milk has a very complex composition .Its constituents are dispersed in an aqueous solution, such as chlorides, sodium and potassium are molecular dispersion, phosphates are in colloidal dispersion, and the fat is present in emulsion.

The composition of milk of different species varies the gross percentage. All milk contains the same kinds of constituent s ad described, but in varying amounts, within a species genetic factors and environmental conditions such as the climate and stage location influence the composition.

Milk is most important diet of human beings. In our country every individual has to consume 210 grams of milk per day for better health position. However, the day (Sangam Dairy Magazine, May 1986) as against the world average of 303 grams. Hence malnutrition can be easily wiped out in country by developing the dairy industry With the commencement of commercial production of the main dairy. The procurement and processing of milk by HFIL will cross approximately 2,00,000 liters per day.

The heritage foods India limited has six products.

1 Heritage Milk

2. Heritage Ghee

3. Heritage Butter

4. Heritage Curd

5. Heritage Skim powder

6. Heritage Dairy WhitenerHeritage Milk is one of the main products of Heritage Foods India limited.

Each 500ml of Heritage Milk Contains

Fat - 3.0%

SNF - 8.5%

Each 250ml of Heritage Milk contains

fat - 7.5gms

Lactose - 12.0gms

Proteins - 8.25 gms

Calcium - 312.5gms

Energy - 148.5 K.cal

SCOPE OF THE STUDY

The study can help the company to study the following:

1. This study give s cheer information about consumer preferences on different brands of dairy milk

2. This study gives information about consumer awareness on heritage milk

3. This study gives information about to determine the brand leaders in chittoor dt

4. The study is useful to know the consumer preference and their reasons to prefer and not to prefer heritage milk

5. This study is useful to amylase the price position of their choice

6. This study is useful to know the impact of brand advertisement on consumers

7. This study is useful to know the sat is faction level with different attributes of heritage milk.

NEED & IMPORTANCE OF THE STUDY

Such Studies dealing with preferences of customers towards a particular brand of a superior quality goods will be immerse use to the industry as a whole. The

Arrival of overall customers preferences as well as the changes taking place in the customer preferences such a knowledge will help the organizations in determine their product one as well as promotional program. The data as collected from consumers survey to know the following-

1. To find out the consumer brand preferences.

2. To find out the consumer awareness impact of advertisement and consumer satisfaction level with respective of Heritage milk.

3. To analyze pricing of Heritage milk.

The above stated reason has lead to conduct the survey about A Study on Degree of awareness and consumer Satisfaction Heritage milk.OBJECTIVES1. To find out the satisfaction level of consumers with respect to HERITAGE MILK PRODUCTS.

2. To know customers satisfaction level-on quality, price. packing of HERITAGE MILK

3. To analyze factors determining consumers choice of various branded milk and the reasons for that choice.

4. To study the degree of effectiveness of advertisements & promotional benefits on consumers.

Research methodology Marketing research is the systematic design, collection analysis, reporting of data and findings relecant to a specific marketing situation facing the company.

Nature of research

Research is basically of two types:

Exploratory research seeks to discover new relationships. These are drawn from ideas developed in the previous research studies or drawn from theory.

Conclusive research helps executives to choose among the various course of action.

Conclusive research was adopted which was descriptive in nature. A descriptive study attempts to obtain a complete and accurate descriptive studies in practice the case method where a small number of cases are studied in complete detail and the statistical method where a small number of cases are studied in complete detail and the statistical method where a small number of cases are studied in complete detail and the statistical method where a few facilities are studied in a large number of cases. The latter method was adopted for this study. Descriptive research for this study was based on a clear set of objectives and formal questionnaire design.

Data Sources Secondary data Secondary data consists of information that already exists somewhere, having been collected for some other purpose. In this study no secondary data pertaining to this study were available. Hence secondary data has not been used.

Primary data

Primary data consists of original information collected for specific purpose. In this study primary data has been used. This relied on the response from respondent as primary data. To obtain this primary data a well structured questionnaire was prepared and the samples where met face to face to get the responses.Sampling Plan

1. Population:

Population or universe can be defined as the complete set of items that are of interest in any particular situation. Population for the study is employees of six defense Establishments.

2. Sample

Sample denotes only a part of the universe, which is studied, and conclusions drawn on the basis of the entire universe. Process of sampling involves

Selecting the sample Collecting data from the sample

Marking an inference from the population

Sample methodologies less time consuming. Cost as a whole is less as only a part of the universe is studied. Results are more reliable.

This study involved sampling method where in samples were drawn from the entire population.

Sample unit:

Sample unit tells, "Who is to be surveyed?" for this market study. The consumers and distributors/wholesalers are surveyed for this study.

Sample Size:

An important decision that has to be taken in adopting a sampling technique is about the size of the sample. Size of the sample means the number of sampling unit should be surveyed?"

Sample size for this study was 300 respondents.

Sampling procedure:

Sampling procedure says, "How should the respondents should be chosen?"

There are two methods of choosing the sample:

Probability sampling:

This method is normally used when there exists a list of all elements in the sample universe by which each element has known chance of being chosen. There are three methods under this:

Simple random sampling

Stratified random sampling

Cluster Sampling

Non - Probability sampling:

When the above condition is not met, non- probability sampling is undertaken which dose not specifies the chance of selecting any element of the sample universe.

These are three methods under this:

Convenience sampling

Judgment sampling

Quato sampling

For this study non- probability quota sampling method is used.

Data collection:

Primary data can be collected in three ways

1. Observation Approach: Fresh data can be gathered by observing the relevant the settlings and features.

2. Focus group approach: The most scientifically valid research is experimental research. This calls for selecting matched groups of subjects and subjecting them to different treatments and checking whether observed response difference is statistically significant.

3. Survey research: Survey research is best studied for descriptive studies. Companies undertake survey research to learn about peoples knowledge, beliefs, preferences and satisfaction on various products and measure this magnitude in the population.RESEARCH INSTRUMENTS

There is a choice of two main research instruments in collecting primary data:

- Mechanical Devices

- Questionnaire

Mechanical devices like galvanometer, telescope and eye camera are widely used . Such instruments were not used in this research.

Questionnaire is the most commonly used instrument in collecting primary data. It consists of a set of questions presented to respondents for their answers. A detailed, clear, non-disguised questionnaire was used to collect the data from the respondents. Necessary precautions were taken to make the questions as clear and precise as possible.

LIMITATIONS OF THE STUDY1. The Study was restricted to Part of chittoor and tirupathi only.

2. The Study was restricted to household Customers only.

3. Non-availability of the customers at home and the time when the survey was conducted.

4. The Sample Size was restricted to three hundred Customers.

5. The Period was restricted to two months REVIEW OF LITERATURE

Customer satisfaction is an outcome-oriented attitude deriving from customers who compare the performance or value of the product with their expectations of it. It is claimed that the customer satisfaction approach depends too heavily on outcome-oriented measures like satisfaction and too superficially on direct experiential measures. A customer is said to be satisfied when a product's performance is above the customer's expectations. Thus, traditional customer satisfaction techniques are deficient if they do not help firms to understand and manage customers' experiences, experiences that lead to the following equation: good experience = satisfaction

The Term Consumer Satisfaction means that whether buyers are satisfied after purchase depends on the offers performance in relation to the buyers to the buyers expectations. That is what customer consuming the product should be up to his needs and wants in order to satisfy the customer satisfaction.

Hence the consumer is the king of the modern market, without customer there is no place to market and also marketing. For every business he needs the customer. Hence the customer plays a very important role in the modern markets.

Marketing included all the aspects involved in exchange process of transforming the possession and ownership of goods or services from the products of ultimate consumer.

According to American Marketing Association, Marketing is concerned with people and activities involved in flow of goods and services from the producers to the consumers.

The Evolution of Marketing concepts are as follows:1. PRODUCTION ORIENTATION

At first, marketing concept was production-oriented production of goods or services were given much importance.

2 SALES ORIENTATION

Next the production orientation sales assumed greater significant efforts were made to increase sales through promoted activities like salesmanship, advertising etc., this concept sales oriented. 3 CONSUMERS ORIENTATIONModern day marketing concepts is based on the philosophy of consumer orientation. According to this concept, all business activities start and end with the consumer, without consumer there is no need for production. As result no business can exit and hence no marketing process.

In words of Peter Druckers there is only valid definition of business purpose To create customer. Hence the modern marketing process, the center around which all business activities revolved around, this form of marketing concept is known as consumer oriented, modern marketing days greater emphasis on freedom of consumer.

4. SOCIETY ORIENTATION

Under this concept marketing plans aims at a desired social changes by goods or service acceptable to the consumer social marketing is also called management-oriented concepts. Proper management of marketing process not only satisfies the consumer but also results in economic growth and social well being.

The term market research is concerned with the investigation and management of market demand for a product. It includes study of the size of the market, consumer needs and motives degree of competition level of income taste and preference change of fashion etc.,

CONSUMER SATISFACTION

The buyer is satisfied after purchase depends on the offer performance is relation to buyers expectations. In General

Satisfaction is a persons feeling of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations.

This definition clears; satisfaction is a function of perceived performance and expectations. If performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If performance exceeds expectations, the customer is highly satisfied or delighted.

Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better other comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional bond with brand not just a rational preference. The result is high customer loyalty.

How do buyer form their expectations? From past buying experience, friends and associates, advice and marketers and competitors information and promises. Some of todays most successful companies are raising expectations and delivering performance to match. These companies are aiming for TCS Total consumer satisfaction.

1 * Have defined it as, The buyers cognitive stage of being adequately or inadequately rewarded for the sac rice he/she has undergone.

2 * Defines it as, An outcome of purchase and use resulting from the buyers comparison of the purchase in relation to the rewards and the costs of the purchase in the relation to the anticipated consequence.

3 * Defines it as, Warranties are promises of complaint resolution and they often encourage dissatisfied customer to return. They also concluded that exceptions of warranty services are greater for durable goods than non-durable goods.4 * Latour, Steven A. and Nancy C. Peat (1979)

5 * Michael D. Johnson, Eugene W. Anderson and Claus Farrell (March 1995)

6 * Richard A. Spreng; Scott B. Mackenzie, and Richard W. Olshavsky (July 1996)

7 * Defines it as, Their findings contributed to the understanding of theoretical principle that explain customer evaluations of service failure/recovery encounter. It also provides managers useful guidelines for establishing the proper fit between a service failure and the recovery effort.1 * Dr. Howard and Smith (1969)

2 * Churchill and Serpent (1982),

3 * Kendall C.L and Russ F.A (April 1975)

4 * Defines it as, The failure to consider the extent to which a product or service fulfils a persons desires has led to logical inconsistencies such as predicting that a consumer who expects and receives poor performance will be satisfied.

5 * Defines it as, Customer satisfaction is conceptualized as a cumulative construct that is affected by market exceptions and performance perception in any given period and is affected by past satisfaction from time to time. They reported based on an empirical study which supports adaptive market satisfaction using data from Swedish customer satisfaction barometer.

6 * Defines it as, Customer satisfaction four major contribution to the field summarized as follows

7 * Amy K. Smith, Ruth N Bolton, and Janet Wagner (August 1999)

a) It confirms the importance of desires congruency as a determine of satisfaction.

b) It integrates multiple standards of comparison into a single framework,

c) It further clarifies the roles of expectations, desire and performance and,

d) It identifies information satisfaction as a key determinant of satisfaction.

COMPONENTS OFCUSTOMERSATISFACTION/DISSATISFACTIONPurchase process:

It prefer to the action of the customer in buying the product.

Decision:

It refers to the extent to which the customer thinks about correctness of this decision with regard to satisfaction. Apart from the product of the process, the customers might have regret about one component, which would affect other components.

Functional Attributes:

Marketing has developed much expertise through product use age studies in an area. It includes listing and rating of all attributes, which affects the fitness of the products to the task and for the consumer.

Aesthetic attributes:

They have included functional attributes that belong to a different motivational set and need, which require separate measurement.

Psychological Attributes:

They may be in equal important to functional attributes and, often account for a great part of total customer satisfaction. Although, they are considerably more difficult to plan for control or measure.

Environment attributes:

These are components of consumer satisfaction, which are growing in importance. Customer concern over throwaway bottles, or incused energy consumption that may potentially affect overall satisfaction with some products.

THEORIES OF CONSUMER SATISFACTION

Assimilation theory:

This theory is based on the expectancy-disconfirmation paradigm. It also emphasizes the dissonance, and the expectations

Oriented response tendency among customers. Customers dont easily accept discrepancies from their preconceived notions and beliefs.

Contrast effect theory:

The contrast effect theory is based on the expectancy disconfirmation paradigm, but it is opposite to the assimilation theory. It is tendency among the customer exaggerate or magnify the difference between their own attitudes and belief and those of others.

Generalized negativity theory:

The generalized negativity theory holds that any discrepancy between expectation and the product performance during disconfirmation results in a generalized negative emotion towards the product, leading to an unfavorable judgment

Assimilation contrast theory:

If the difference between exceptions and the product performance is, however too large and falls in the zone of rejection of customer exaggerated or magnify the difference between their expectations and the product performance in the directions of disconfirmation

Opponent process theory:

The theory has been evolved from the concepts of homeostatic in physiology. It is the process by which the body maintains its equilibrium after encountering a disruptive stimulus, through the opponent process, or the body to counteract the effect of the disruptive stimulus and re-set equilibriums.

Equity theory:

The equity theory is based on the fairness in exchange transaction principle. It states that customer evaluates their purchases in term of sacrifice and efforts made while purchasing the product-input-against value and benefits derived from the product/exchange outcomes.

Attribute theory:

An outcome that can be constructed as successful failure has causality interference along the following

A. Stability [variability of the cause of outcome]

B. Controllability [to what extent the cause in controlled].

Effort/satisfaction theory:

It describes the relationship between the amount if effort an individual experience once the goal is attained. According to this theory, the effect expended by an individual in the attainment of goal, and the resulting amount of satisfaction materializing as an outcome of this attainment, or positively related.

Optimal stimulation theory:

Different levels are needed to be measured and then used to plan marketing strategy

a) People might get different degrees of satisfaction from the same acquisition.

b) Interaction between effect satisfaction theory and optimal stimulation theory.

c) Paying a higher price for product leads to a higher evaluation and satisfaction of the product.

d) High sensation seekers are more likely than low sensation seekers to be consumer innovators who tend to purchase new product

Pricing policy:

The price the consumer pays for a product is nothing a form of saved effort and therefore the higher the price, the higher the assumed customer satisfaction. Stimulation among individual that requires the price maker to reconsider the physiological basis for the pricing policy.

Promotional appeal:

In new product, development too needs to identify mass media that will reach potential buyers, and to determine the most appropriate appealed to be used in the messages. The high sensation seekers are morally likely be influenced by the promotional appeal stressing risk and novelty. It suggests the need for separate promotional campaigns.

Customer loyalty and consumer satisfaction:

Brand loyalty was popular topic in the 1950s and 1960s. The first study on loyalty undertaken by the dentist they existence of repeat purchase behavior and concluded that most consumers are brand local.

Customer satisfaction is not the same thing as customer retention loyalty. Satisfied customer may never return

Customer moves up a loyalty ladder from trail buyer to client to advocate as in figure

Satisfaction is a required but not necessarily sufficient condition for repeat purchase to occur. Overtime customer may reach the top of the ladder and recommended the product to others.

Customer Retention and customers satisfaction

It has been least that long-time profits and costs are necessarily associated with repeat customer than that of attracting new ones. Repeat customers are essential for long-time business success mainly because of

Purchase amount increases as they buy move per traction

They pay price premiums more willing because they are less price-sensitive, and normally spend more than first time customers

Purchase frequency increase as repeat customers buy more often

Advertising and operating costs are reduced

Referrals-repeats customers are more likely to recommend a product or service to others.

The task of satisfying consumer has become complex mainly because of following reasons:

Consumers become more demanding, because of inroad familiarity with products and services.

Expectations increase overtime; novelty wears off.

With additional consumer contacts, there are more opportunities for error.

METHODS OF TRACKING AND MEASURING CONSUMER

SATISFACTION

Generally consumers are dissatisfied with one out of every four purchase and less then 5 per cent of dissatisfied consumers complain consumer fell that their complaints are minor or that they will be made to fell stupid or that no remedy will be offered hence, complaint cannot sue complaints level as a measured of consumers satisfaction

The following tools a for tracking and measuring consumers satisfaction are outlined as follows;

ADVISORY GROUPS:

These groups are volunteer groups of consumer that meet at regular interval to provide in-depth suggestion and direction to a company.

COMPLAINT AND SUGGESTION TRACKING:

A consumer-centered organization would make it easy for its consumer to deliver suggestion and complaints.

CUSTOMER SATISFACTION SURVEY:

This is one of most commonly found in measurement of customer satisfaction.

LEVEL OF CUSTOMER SATISFACTION;

There are three level of customer satisfaction.

EXPECTED QUALITY LEVEL:

It measures, and can make or break decision in buying. If company meets the standard, doing a better job at that feature does not get more business.

DESIRED QUALITY LEVELS:

The better the company at providing desired features, the grater the satisfaction.

EXCITED QUALITY LEVELS:

Consumers are not expecting these features of company product. They are pleasantly surprised. DEVELOPOING AN EFFECTIVE CONSUMER SATISFACTION

PROGRAMMES:

It consists of following five steps:Consumer satisfaction audit.

It is being pursed through regular sales call, focus group sand periodic marketing research. It is helpful to collect systematic information on employee-consumer contact.

1. Service strategy development:

The company should devise excellent service strategy to form a consumer mission statement and actions, strategy to form a consumer mission statement and actions, which will provide them with a sustained competitive advantage in the field place. It must receive commitment and endorsement of all people in an organization.

2 Employee relations:

This is the most crucial part of consumer satisfaction program and three areas of activities for good employee relations, which consists of Employee Awareness and Training.

3 Implementing tactics:

The training programs, peonies program, celebration for performance, productivity can make a great difference in design and implantation of effective consumer satisfaction program. It requires hard work, dedication, teamwork, and commitment.

4 Maintenance and feedback:

The maintenance and feedback system should operate at the company level and employee level, to provide the feedback regarding how well they are meeting expectations. Consumers satisfaction audit should periodically measures effectiveness and performance of consumer service practices, procedure, and policies.

DATA ANALYSIS AND INTERPRETATION

TABLE 1

Family size of the respondents

Size of the familyNumber of respondentsPercentage

2 persons3913

3 persons11839

4 persons9231

Above 4 persons5117

Total300100

Inference: The above table indicates that a majority of 39% of the respondents family size is 3 persons, 31% of the respondents family size is 4 persons, 17 percent of the family size is above 4 persons and remaining 13 percent of the respondents family size was 2 persons.

TABLE 2

Respondents preferred or using milk

Type of milkNumber of respondentsPercentage

Cows milk4615

Buffalos milk5418

Packed milk20067

Total300100

Inference:

The above table indicates that a majority of 67% the respondents prefers packed milk, 18.1% of them prefer buffalos milk and remaining 15% of the respondents prefer cows milk. Respondents preferred milk

TABLE 3

Pack size preferred by the respondents

Pack sizeNumber of respondentsPercentage

200ml2010

500ml15577

1 liter2513

Total200100

Inference:

The above tabulation indicates that majority of 77 percent of the respondents prefer 500ml packets, 13 percent of them prefer 1-liter packets and remaining 10 percent of the respondents prefer 200ml pack size.

Pack size preferred by the respondentsTABLE 4

Daily consumption of the milk by the respondents

.

TABLE 4

Daily consumption of the milk by the respondents

Quantity of milkNumber of respondentsPercentage

500ml3512

1 Liter18060

2 Liters5117

Above 2 liters3411

Total300100

Inference: From the above tabulation indicates that majority of 60 percent of the respondents consumed 1 liter per day, remaining 12%, 17%, 11% are consumed 500ml 2 liters, above 2 liters per day.

Respondents Daily consumption of the milk TABLE 5

Respondents preferred brand of packed milk

BrandNumber of respondentsPercentage

Heritage8542

Avian7437

Arokya3015

Jersy53

Tirumala63

Total200100

Inference:

The above tabulation indicates that majority of 42 percent of the respondents prefer heritage milk. Next majority of 37 percent of the respondents prefer Aavin milk.

TABLE 6Experience of the respondentsYear of experienceNumber of respondentsPercentage

Below 6 months7324

6 months to 10 years9833

1-2 years6923

More than 2 years6020

Total300100

Inference: The above table indicates that 33% of the respondents purchasing from the period of 6 months 1o 1 year, next majority of respondents purchasing from the period of one to 6 months.TABLE 7

Influencing factors to purchase current brand

Influencing factorsNumber of respondentsPercentage

Freshness (quality)13869

Packing2211

Price3015

Advertisement105

Total200100

Inference: The above tabulation indicates that a majority of 69% of the respondents purchasing heritage milk was freshness (quality) 11%, 15% and 5% purchasing for packing, price, and advertisements.

TABLE 8

Respondents Brand awareness of Heritage Milk

AwarenessNumber of respondentsPercentage

Aware24080

Unaware6020

Total300100

Inference:

The above table indicates that 80% of the respondents are aware 20% are unaware of Heritage milk.

TABLE 9

Respondents come to know of Heritage Brand

MediaNumber of RespondentsPercentage

Hoardings5322.00

Wall posters2410.00

Friends and relatives16368.00

Total240100

Inference:The above tabulation indicates that a majority of 68% of the respondents knows of Heritage brand by friends and relatives, 22% of the Respondents know of Heritage milk by hoardings and remaining 10% of the respondents know of Heritage by wall posters.

TABLE 10

Respondents trained of Heritage Brand

TrainedNo. Of respondentsPercentage

Yes18060

No12040

Total300100

Inference:

The above table indicates that majorities of 60% of the respondents are trained heritage milk and remaining 40% of the respondents are not trained heritage milk.

TABLE 11

Reasons for Respondents prefer heritage milk


Quality8044

Price3017

Availability7039

Total180100

Inference: The above table indicates that a majority of 44 percent of the respondents prefer by quality, 39 percent of the respondents prefer by availability and remaining 17 percent of the respondents preferred the price.

TABLE 12

Opinion on the price of Heritage milk compares to other brands of milk

Opinion of priceNo. of respondentsPercentage

High3821

Very high2514

Moderate11765

Low--

Total180100

Inference: The above table indicates that 65% of the respondents feel that the heritage price of the milk is moderate.

TABLE 13 Consumers perception on packing of Heritage milkPacking of Heritage milkNo. of respondentsPercentage

Good9352

Average6536

Bad

2212

Total180100

Inference:The above table indicates that a majority of 52 percent of the respondents feels heritage milk packing is good, 36 percent of the respondents feel heritage milk packing is average remaining respondents feel bad.

TABLE 14

Respondents satisfaction with Heritage milk

SatisfactionNumber of respondentsPercentage

Highly satisfied5330.00

Satisfied7441.00

Highly dissatisfied3921.00

Dissatisfied148.00

Total180100

Inference:

The above tabulation indicates that a majority of 41 percent of the respondents was satisfied, next majority of 30 percent of the respondents was highly satisfied.

TABLE 15 Respondents rank on the quality of heritage milk

Rank of qualityNo. of respondentsPercentage

Excellent5129

Very good4223

Good3821

Average3519

Poor14899

Total180100

Inference: From the above table it is inferred that 29% of the respondents feel quality was excellent, 23 percent of the respondents feel quality was very good, 21 percent of the respondents feel good, 19 percent of the respondents feel average and remaining 8 percent of the respondents feel quality was poor.TABLE 16

Respondents opinion on Media for sales promotion

MediaNo. of respondentsPercentage

Television11840

Radio jingles8127

Newspapers3210

Hoardings4214.00

Total300100

Inference:

The above table indicates that a majority of 40 percent of the respondents opinion was Television is the best media and next majority of 27 percent go to Radio Jingles.

TABLE 17

Respondents expecting sales promotion activities from manufacturer

Sales promotion activities No. of respondentsPercentage

Gifts11538.00

Discounts6724.00

Lucky draws6220.00

Offers5618.00

Total300100

Inference:

The above tabulation indicates that 38% of the respondents expecting gifts, 24% expecting discounts, 20% expecting lucky draws and remaining expecting offers from the manufacturers.

Factors influenced reasons for not buying Heritage milkTABLE 18

Factors influencedNo. of respondentsPercentage

Non availability6251.00

Unawareness3025.00

Poor quality1110.00

High Price1714.00

Total120100

Inference: The above table indicates that 51 percent of the respondents not buying Heritage Milk because non availability.

Respondents experience in using of various brandsTABLE 19BrandYear Of ExperienceNo. Of

Respondents%

Below

6 months6 to 12

Years1-2Above

2 years

Heritage253723-8529

Aavin152021187424

Arokya2010--3010

Jersy5---52

Tirumala6---62

Cows milk---464615

Buffalo milk--14405418

Total716758104300100

Inference: The above tabulation indicates that a majority of 29 percent of the respondents prefer Heritage milk, 24 percent f the Aavin milk, 18 percent of the prefer buffalo milk and 15 percent

FINDINGS

42% of consumers are highly satisfied with the HERITAGE MILK.

65% of the respondents feel price of Heritage Milk is moderate.

39 % of the consumers feel Heritage Milk quality is Excellent and price is high.

52% of the respondents feel Heritage Milk packing is good.

24 % of the respondents prefer Aavin Milk it is the major competitor to the Heritage Milk.

The advertisements & promotional activities will not satisfy the costumer needs and wants.

SUGGESTIONS

1. Heritage milk has got high awareness and preference. But still brand like Aavin are poling on top of the mind. The company should try to position them self as a commercial brand with quality and increasing shoppers in uncovered areas.

2. The company should use print media and hoarding effectively for advertising Heritage milk.

3. Efforts should be made to improve communication between dairy authorities and end users through regular interaction.

4. Slides and documentary files to be shown in cinema halls before news bulletin or intermission time.

5. Improve the quality, reduce the price and put more concentration on packaging aspects and promoting other products.

6. Most of the consumers prefer 500ml milk packets. So that most concentration on that pack size.

CONCLUSIONThe study shows that HERITAGE MILK is the major brand which caught the chittoor dt. Market. If HERITAGE dairy milk wants to stand their position as a market leader forever they should work towards having an edge the minds of the consumers in all aspects. The consumer satisfaction is linked up with product delivered performance, accordingly they expect specialized feature of the product. The survey analysis shows that the consumer is expecting product at less price and high qualitative. So it is suggested that the company should maintain or product the product at high quality and low prices.

Questionnaire for consumer

1. Name:

2. Age:

3. Gender:

4. What is the size of your family?

A) 2 B) 3

C) 4 D) Above4

5. Which type of milk are you using at present?

A) Cows milk B) Buffalos milk C) Packed milk

6. If you are using packet milk what pack size do you prefer?

A) 200ml B) 500ml C) 1ltr

7. What is the quantity of milk consumed per day?

A) 500ml B) 1ltr

C) 2ltr D) above 2ltr

8. What is your brand of packed milk?

A) Heritage B) Aavin C) Arokya

D) Jersey E) Tirumala F) others (specified.)

9. How long have you been using your current brand?

A) Below 6 months B) 6 months to 1 year

C) 1-2 years D) more than 2 years

10. What factors influenced you to select the brand?

A) Freshness (quality) B) packing

C) Price D) Advertisement

11. Are you aware of heritage milk?

A) Yes B) No

12. How did you come to know of heritage brand?

A) Hoardings B) Wall posters C) Friends& Relatives

13. Do you use Heritage milk?

A) Yes B) No

If yes fill in the following questions

If no go to question 19

14. Why do you prefer heritage milk?

A) Quality B) price

C) Availability D) Advertisements

15. What do you think of the price?

A) High B) very high

C) Moderate D) Low

16. How do you grade the packing of heritage milk?

A) Good B) average C) bad

17. Are you satisfied with the quality of heritage milk?

A) Highly-satisfied B) satisfied

C) Dissatisfied D) Highly dissatisfied

18. Rank the quality of heritage milk?

A) Excellent

B) Very good

C) Good

D) Average

E) Poor

19. Reasons for not buying Heritage milk?

A) Non availability

B) Unawareness

C) Poor quality D) High price

20. Which of the following advertising media attracted you more (current brand)?

A) T.V

B) Radio jingles C) News papers

D) Wall posters

E) Hoardings

21. What are the promotional benefits you except from the manufacturer?

A) Gifts

B) Discounts

C) Lucky drawsD) Offers

Reference

1. Marketing management Philip kotler Millennium edition

2. Marketing research C.R.Kothari Second edition

3. Marketing research Boyd, Westfall&Stasch Sixth edition

4. www.Heritagefoodsindia.co.in

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Price3015

Advertisement105

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_1350237672.xlsChart1

3821

2514

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Opinion of priceNo. of respondentsPercentage

High3821

Very high2514

Moderate11765

Low--

Total180100

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11839

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Size of the familyNumber of respondentsPercentage

2 persons3913

3 persons11839

4 persons9231

Above 4 persons5117

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Family size of the respondents

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_1351024205.xlsChart1

8529

7424

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No.of Respondents

Sheet1

BrandYear Of ExperienceNo. Of%

Respondents

Below6 to 122-JanAbove

6 monthsYears2 years

Heritage253723-8529

Aavin152021187424

Arokya2010--3010

Jersy5---52

Tirumala6---62

Cows milk---464615

Buffalo milk--14405418

Total716758104300100

Sheet1

00

00

00

00

00

00

00

No.of Respondents

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_1350239107.xlsChart1

6251

3025

1110

1714

120100

No. of respondents

Percentage

Sheet1

Factors influencedNo. of respondentsPercentage

Non availability6251

Unawareness3025

Poor quality1110

High Price1714

Total120100

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00

00

00

00

00

No. of respondents

Percentage

Sheet2

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_1350237351.xlsChart1

18060

12040

No. of respondents

Percentage

Respondents traied of Heritage milk

Sheet1

Number of RespondentsPercentage

Media

Hoardings5322

Wall posters2410

Friends and relatives16368

Sheet2

Mediarespondenpercentage

TrainedNo. of respondentsPercentage

Yes18060

No12040

Sheet3

Number of RespondentsPercentage

Hoardings5322Hoardings5322

Wall posters2410Wall posters2410

Friends and relatives16368Friends and relatives16368

Sheet3

18060

12040

No. of respondents

Percentage

Respondents traied of Heritage milk

MBD0000D90C.xls

Chart6

24080

6020


Percentage

Respondents awareness of Heritage milk

Sheet1


500ml3512

1 Liter18060

2 Liters5117

Above 2 liters3411

Sheet2

Year of experienceNumber of respondentsPercentage

Below 6 months7324


1-2 years6923


Sheet3



Packing2211

Price3015

Advertisement105


Aware24080

Unaware6020

Sheet3


Percentage


MBD0000D90D.xls

Chart6

24080

6020


Percentage


Sheet1


500ml3512

1 Liter18060

2 Liters5117

Above 2 liters3411

Sheet2


Below 6 months7324


1-2 years6923


Sheet3



Packing2211

Price3015

Advertisement105


Aware24080

Unaware6020

Sheet3


Percentage


MBD0000D90B.xls

Chart6

24080

6020


Percentage


Sheet1


500ml3512

1 Liter18060

2 Liters5117

Above 2 liters3411

Sheet2


Below 6 months7324


1-2 years6923


Sheet3



Packing2211

Price3015

Advertisement105


Aware24080

Unaware6020

Sheet3


Percentage


_1350237461.xlsChart1

8044

3017

7039

180100


Percentage

Sheet1


Quality8044

Price3017

Availability7039

Total180100

Sheet1

00

00

00

00


Percentage

Sheet2

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_1350236976.xlsChart1

24080

6020


Percentage


Sheet1


500ml3512

1 Liter18060

2 Liters5117

Above 2 liters3411

Sheet2


Below 6 months7324


1-2 years6923


Sheet3



Packing2211

Price3015

Advertisement105


Aware24080

Unaware6020

Sheet3

00

00


Percentage


_1285489508.xlsChart1

11538

6724

6220

5618

300100

No. Of respondents

Percentage

Sheet1

Sales promotion activitiesNo. Of respondentsPercentage

Gifts11538

Discounts6724

Lucky draws6220

Offers5618

Total300100

Sheet1

00

00

00

00

00

No. Of respondents

Percentage

Sheet2

Sheet3

_1350232965.xlsChart1

8542

7437

3015

553

63


Percentage

Sheet1

BrandNumber of respondentsPercentage

Heritage8542

Aavin7437

Arokya3015

Jersy553

Tirumala63

Sheet1

00

00

00

00

00


Percentage

Respondents prefered brand of packed milk

Sheet2

Sheet3

_1285838086.doc

_1285489437.xlsChart2

11840

8127

3210

4214

300100

No. of respondents

Percentage

Sheet1

Sales promotion activitiesNo. Of respondentsPercentage

Gifts11538

Discounts6724

Lucky draws6220

Offers5618

Total300100

Sheet1

No. Of respondents

Percentage

Sheet2

MediaNo. of respondentsPercentage

Television11840

Radio jingles8127

Newspapers3210

Hoardings4214

Total300100

Sheet2

No. of respondents

Percentage

Sheet3

project

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