“Study on Market Share and Consumer Preference

of Different Brands of Milk & Milk Products in Patna

Town (Bihar) With Special Reference to Sudha Dairy”

PROJECT REPORT

Submitted to the

Jawaharlal Nehru Krishi Vishwa Vidayalaya

In partial fulfilment of the requirements

for the Degree of

MASTER OF BUSINESS ADMINISTRATIONin

AGRICULTURE

Submitted by

PRANAV KUMAR

Department of Agricultural Economics & Farm Management

Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur

College of Agriculture

Jabalpur (MP)

2012

DECLARATION

I, Pranav kumar, student of MBA (Agri.), Department of

Agricultural Economics and Farm Management, College of

Agriculture, Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur,

declare that, I have furnished original data and information to the

best of my knowledge in the project t it led “Study on Market shareand consumer Preference of Different Brands of Milk & MilkProducts in Patna town (Bihar) with Special Reference to SudhaDairy” and that no part of this information has been used for any

other purpose, but for the partial fulf i lment towards completion of

degree.

Place: Jabalpur

Date: Pranav Kumar

MBA (Agriculture) 2011-12

Jawaharlal Nehru Krishi Vishwa Vidyalaya,

Jabalpur (M. P.) – 482004

CERTIFICATE - I

This is to cert ify that the project ent it led “ Study on marketshare and consumer preference of different brands of milk &milk products in Patna town (Bihar) with special reference toSudha dairy” submitted in partial fulf i lment of the requirement forthe degree of Master of Business Administration in Agriculture,Department of Agricultural Economics and Farm Management,Jawaharlal Nehru krishi vishwa vidayalaya, Jabalpur is a recordof the bonafide research work carried out by Mr. Pranav Kumarunder my guidance and supervision. The student’s AdvisoryCommittee and the Director of Instruction have approved the subjectof the project.

No part of this project has been submitted for any otherdegree or diploma (Certif icate awarded etc.) or has been published /published part has been fully acknowledged. He has acknowledgedall the assistance and help received during the course of theinvestigation.

Date:

Place: Jabalpur ( Dr. A. K. SARAWGI )

Chairman

Advisory committee

PROJECT REPORT APPROVED BY THE STUDENTS’SADVISORY COMMITTEE

Chairman ( Dr.A.K.Sarawgi ) ……………….

Member ( Dr.P.K.Awasthi ) ………………..

Member ( Dr.A.K.Rai ). …………………

CERTIFICATE - II

This is to certify that the project report ent it led “ Study onmarket share and consumer preference of different brands ofmilk & milk products in patna town(Bihar) with special refrenceto Sudha dairy” submitted by Mr. Pranav Kumar to the Jawaharlal

Nehru Krishi Vishwa Vidyalaya, Jabalpur in part ial fulf i l lment of the

requirement for the degree Master of Business Administration inAgriculture , in the Department of Agricultural Economics andFarm Management, Jawaharlal Nehru Krishi Vishwa Vidyalaya,Jabalpur has been ,after evaluation ,approved by the External

Examiner and by the Student’s Advisory Committee after an oral

examination on the same.

Date:

Pace: Jabalpur (Dr.A.K.Sarawgi)

Chairman

Advisory Committee

MEMBERS OF THE STUDENT’S ADVISORY COMMITTEE

Chairman (Dr.A.K.Sarawgi) ………………

Members (Dr.P.K.Awasthi) ……………….

Members (Dr.AK.Rai) ………………

Head of the Department (Dr.N.K.Raghuwanshi) ……………….

Director of Instruction (Dr.P.K.Mishra) ………………

ACKNOWLEDGEMENT

It is indeed a great pleasure in getting this privilege to express my

indebtedness and deepest sense of gratitude and sincere thanks to my guide

Dr.A.K.Sarawgi, Professor and Associate Course coordinator (MBA) & I/C

Academic College of Agriculture, Department of Agricultural Economics & Farm

Management, College of Agriculture, J.N.K.V.V., Jabalpur for the inspiring

guidance, constructive criticism, constant encouragement and generous

throughout the course and during my project.

I express my sincere thanks to the members of my advisory committee

Dr.P.K.Awasthi and Dr.A.K.Rai for their consistent and invaluable inspiration,

throughout the course of my study.

I feel short of words for expressing my sincere & profound gratitude to

Dr.N.K.Raghuwanshi Professor and Head, Department of Agricultural

Economics & Farm Management, College of Agriculture, J.N.K.V.V., Jabalpur, for

providing necessary facilities and useful suggestions during the period of this

study.

I express my heart–felt gratitude to Dr.K.G.Choubey, Course

coordinator of MBA (Agriculture), Dr. A.M. Mishra, Dr .A. Shrivasatava, Dr.

D.N.Tiwari, Dr. H.O. Sharama, Dr. Premchand for their prolific & introspective

discussion throughout the project work.

I render my sincere thanks to Dr. P.K. Mishra, Director of instruction and

Dr.D.K.Mishra Dean, College of Agriculture, J.N.K.V.V., Jabalpur. Dr.P.K.Bisen,Dean Student Welfare, J.N.K.V.V, Jabalpur for providing all the necessary

facilities during the study at Jabalpur.

I would like to express my appreciation to Miss. Vandana, ChiefMarketing Executive of Patna, Sudha Dairy, Mr. Niranjan kumar, Chief

Marketing officer of Patna, Sudha Dairy and all staff for giving me the opportunity

to work with great hospitality despite of their busy schedule. Their support has

been crucial for the completion of this project.

I would like to express my heartiest thanks to my friends & batch mates

Simanchal, Deepraj, Vasu, Padma, Munesh ,Chandresh Ashish, Pawan, Dilip,

Ajay ,Niranjan, Kuber, Girdhari, Ravi ,Pankaj, Vikash, Abdul Malik, Chandan for

their whole cooperation in shaping & compiling this project.

I express my deep feeling of reverence to my father Mr.S.P.Yadav,

mother Mrs. Manorma Devi and Brother-in-law Proff. Uday Kumar, eldersisters Pratibha, Pratima and all my relatives who were always there for me in

the hours of need & whose workshipable blessing helped me to complete my

work.

Last but not least, I am thankful to all of them who helped me during my

project work & could not find a separate mention.

Place: Jabalpur PRANAV KUMAR

Date:

LIST OF CHAPTER

S.No. Chapter Page No.

1 Introduction 1-5

2 Profile of Organizat ion 6-17

3 Profile of Study Area 18-22

4 Methods and Materials 23- 25

5 Presentat ion of Data and Finding 26 – 33

6 Summary, Conclusion and

Recommendations

34– 36

Index

Vita

LIST OF TABLES

TableNo. TITLE Page

No.

2.1 Different brand of milk products under Sudha dairy

(Patna)

9

2.2 Progress Report of Milk Procurement Programme. 15

4.1 Different zones of Patna town (Bihar) 24

5.1 Market share of Milk in Patna town (Brandwise) 26

5.2 Market Share of dif ferent type of milk (Sudha Dairy). 27

5.3 The market share (Volume wise) of dif ferent Milk

Products of important Milk brands (Brand wise) in

the selected area

29

5.4 Consumer preferences towards Milk and Milk

Products of Sudha Dairy

31

LIST OF FIGURES

FigureNo.

Title PageNo.

2.1 Staff ing pattern of Patna Dairy Project 7

2.2 Building Of Sudha Dairy ( Patna Dairy Project) 8

2.3 Products of the Patna Dairy Project 10

2.4 New Products of Patna Dairy Project. 10

2.5 Distr ibution Channel for the Milk and Milk

Products

11

2.6 Processing Plant 16

2.7 Pasteurizat ion Plant 16

2.8 Laboratory for Quality Test 17

2.9 Product Packing 17

3.1 Population graph of Patna (Bihar) 20

3.2 Map of Bihar 22

5.1 Market share of Mi lk of different Brands in Patna

Town

27

5.2 Market share of dif ferent types of Milk of Sudha

Dairy

28

5.3 Market share (Volume wise) of Milk Products of

dif ferent companies in Patna Town.

30

1

INTRODUCTION

India has the highest l ivestock population in the world with50 percent of the buffaloes and 20 percent of the world’s catt lepopulation, most of which are milch cows and milch buffaloes.India’s dairy industry is considered as one of the most successfuldevelopment program in the post-Independence period. Itprovides the cheapest and best nutrit ious food to people and atthe same time veterinary care to the l ivestock’s.

In the year 2008-09 the total milk production in the countrywas over 108.5 mil l ion tones with a per capita availabi l ity of 258grams per day. The industry had been recording an annual growthof 6 percent during the period 1993-2010, which is almost 3 t imesthe average growth rate of the dairy industry in the world. Milkprocessing in India is around 35 percent, of which the organizeddairy industry account for 13 percent of the milk produced, whilethe rest of the milk is either consumed at farm level, or sold asfresh, non-pasteurized milk through unorganized channels. Thischange was possible in our history due to the Operat ion Flood,which was a rural development Programme started by India’sNational Dairy Development Board (NDDB) in 1970.

One of the largest of its kind, with the main object ive tocreate a nationwide milk grid. It resulted in making India thelargest producer of milk and a milk product hence is also calledthe ‘White Revolution’ of India. I t also helped to reducemalpract ices by milk traders and merchants. This revolutionhelped in alleviat ing poverty and famine levels from theirdangerous proport ions in India during the era. Operation Floodhas helped the dairy farmers to develop their economic status byplacing control of the resources they had in their own hands. A'National Milk Grid', l inks milk producers throughout India withconsumers in over 700 towns and cit ies, reducing seasonal andregional price variations while ensuring that the producer gets amajor share of the price consumers pay.

2

Operation Flood's objectives included:

Increase milk production ("a f lood of milk")

Augment rural incomes

Fair prices for consumers

The Programme was launched in three phases and each phase

has its own objective:

1. Phase I (1970–1980):

During this period, Operation Flood linked 18 of India's

premier milk sheds with consumers in India's major metropolitan

cit ies viz., Delhi, Mumbai, Kolkata and Chennai. Thus

establishing Mother dairies in four metros and speed up the

development of dairy animals with a view to increase both

production and procurement.

Operation f lood, also referred to as “White Revolut ion” is a

gigantic project propounded by Government of India for

developing dairy industry in the country.

2. Phase II (1981–1985):

In the second phase, the objective was to increase the milk

sheds from 18 to 136 and almost 290 urban markets expanded

their out lets for milk. In the end of 1985, a self -sustaining system

with 43,000 vi l lages cooperative was established. The direct

marketing of milk by cooperat ives has increased by several

mill ion l iters a day.

3. Phase III (1985–1996):

Enabled dairy cooperatives to expand and strengthen the

infrastructure required to procure and to increasing the volumes

of milk. Veterinary f irst -aid health care services, feed and

artif icial insemination services for cooperative members were

extended, along with intensif ied member education. It

consolidated India's dairy cooperat ive movement by adding

3

30,000 new dairy cooperat ives to it. Thus Phase III gave

emphasis to research and development in animal health and

animal nutrit ion, all contribut ing to enhance the productivity of the

milch animals Now in the present scenario the Dairy Cooperatives

account for the major share of processed l iquid milk marketed in

the India. Milk is processed and marketed by 170 Milk Producers’

Cooperat ive Unions, which federate into 15 State Cooperative

Milk Marketing Federations. Over the years, several brands have

been created by cooperatives like Amul (Gujarat), Vi jaya (AP),

Verka (Punjab), Saras (Rajasthan), Nandini (Karnataka), Milma

(Kerala) and Gokul (Kolhapur), Sudha (Bihar).

The highest milk producer in the entire globe “India” boasts

of that status. India is otherwise known as the ‘oyster’ of the

global dairy industry, with opportunit ies galore to the

entrepreneur globally. Anyone might want to capitalize on the

largest and fastest growing milk and milk product market. The

dairy industry in India has been witnessing rapid growth. The

potential area for the investment in the dairy industry covers the

areas such as the raw milk handling, milk processing, packaging,

and value added products. The l iberal ized economy provides

more opportunit ies for MNCs (Mult i National Companies) and

foreign investors to release the full potential of this industry. The

main aim of the Indian dairy industry is only to better mana ge the

national resources to enhance milk production and upgrade milk

processing using innovative technologies.

The market share & market potential occupies a signif icant

place in the study of marketing effectiveness of any f irm, becausesale is l ife blood of the business. With the expansion of the

business, the life of the market to be covered to sale large

quantity of goods becomes too large to control by the owner ofthe- business under taking personality. Hence, this arises the

need of sales organizat ion to perform the various functions.

These functions include market research, product planning, sales

4

forecasting, determination of sell ing policy, select ion of channel

of distr ibution, selection, training, supervision and rem uneration

of the sales man etc.

Indeed, market share of dif ferent milk products is shown by

their taste, preference of different milk products and dif ferent

consumers.

As maximization of prof it is the main object ive of everybusiness and this aim could be achieved if the prof itabil ity of the

f irm is increasing and if it is decreasing, then it would be hard

enough to operate the business for long. So consumer preference

towards their l ikely products should be taken very consciously.

After production, the next problem faced by a producer is

that of sell ing and distribut ing because production is made to

satisfy the need of the consumer, so it must reach to theconsumer for whom it is made. In this way, f irm can maintain

effective market share of dif ferent milk products.

The ult imate aim of marketing is to meet and satisfy

customer’s needs, wants and desires. But it is not very simple toknow the customers preferences. They may not in touch with as

they may respond to inf luences that change their mind in last

minute.

So plainly speaking the term consumer behavior refers tothe behavior that consumers display in searching for purchasing,

using evaluating and dispersing of products and services that

they expert would satisfy their needs.

In other words the study of consumer behavior is the studyof how individuals make decisions to spend their available

resources (Time, Money, Efforts) on dif ferent items or

consumption.

5

SPECIFIC OBJECTIVES:

Keeping in view the important of milk, milk product s and

livestock industry the project work was undertaken with following

specif ic object ives : -

1. To measures the market shares of Sudha Dairy products

(Patna Dairy Project) .

2. To study the Consumer Preferences on Sudha Dairy

products.

3. To identify the problems and suggest the measures to

improve the market share through an effective channel of

distribut ion.

4. SWOT analysis of the Organization.

6

PROFILE OF ORGANIZATION

This chapter deals with the details of Patna Dairy Project

(Sudha Dairy), unit of the Bihar State Cooperative Milk Producers

Federation Limited (COMFED).

India primarily is a country of farmers. It is largely dependent

on the agriculture products and animal husbandry.

Due to massive Dairy Development, milk production suddenly

showed an upward trend. Govt. provides heavy subsidies to

maintain & operate the Govt. liquid milk plant as public utility

activity. Most of the big Dairy processing unit and manufacturing

milk products in the country are comes in the co-operative sectors.

Under the five year plan, milk marketing flourished a lot. Sudha

Dairy also works on the principal of co-operative society.

HISTORICAL BACKGROUND

Patna was one of the milk shed identif ied under ‘Operation

Flood-1’ (OF-1) for implementation of the program. A hundred

thousand liters per day capacity Feeder Balancing Dairy (FDB)

&100 MT per day capacity feed plant (CFP) were set up under this

program.

In order to implement the program properly & also for

organizing the milk procurement activities & for the management of

above two plants, the Bihar State Dairy Corporation (BSDC) wasformed in the year 1972. The Dairy Corporation was to develop the

dairy co-operatives both at the village level co-operatives would

take over the entire infrastructure created in due course.

The Corporation after recruitment& training of necessary staff

positioned the procurement & Input wing (P&I) from 1975 . A

spearhead team (SHT) was deputed from National Dairy

Development Board (NDDB) from the same year for helping the

7

corporation in organizing & developing the co-operatives. Though

the progress in the initial years was encouraging the program for

obvious reasons couldn’t achieve the goals for which it was

established.

The National Dairy Development Board (NDDB) took over the

management of infrastructure with effort from 1 st October 1983

under the banner of Patna Dairy Project (PDP) as Sudha Dairy,

Patna.

STAFFING PATTERN

Staffing pattern of Patna dairy project (Sudha Dairy) is very

well organized and it is drawn below:

Staffing pattern of the Patna Dairy Project (Sudha Dairy)

Managing Director

Engineeringstaff

Processingstaff

Accounts staff Marketing staff Staff

Clerk

Engineeringsuperintende

nt

ProcessingSuperintende

nt

Accountantsuperintenden

t

superintendent

MarketingSuperintendent

Administrative

Executive

Managerprocuremen

t

ManagerAccount

Managermarketing

ManagerAdministrativ

e

Managerengineerin

g

General Manager

8

Fig.2.1: Staffing pattern of Patna Dairy Project

Fig 2.2: Building of the Sudha dairy (Patna Dairy Project)

9

2.1: Milk and Milk Products produced by organization

There is wide range of Sudha dairy products which includes

milk and milk products produced by organization. The Patna Dairy

Project (Sudha Dairy) offers a wide range of products under the

brand name “SUDHA” to its customers according to their taste

and preferences. It ’s the sole and center of marketing.

Table 2.1: Different brand of milk products under Sudha dairy(Patna)

Milk Milk Products New Products

Full cream Milk Paneer Sudha Cool sip

Standard milk Peda Sudha Mattha

Toned milk Lassi

DoubleToned milk Flavored Lassi

Misti doi

Fitness curd

Ice cream

The table 2.1 reveals that the four type of milk are being sold

which are the Full cream milk, standard milk, toned milk and

double tonned milk and there are seven milk product such as

Paneer, Peda, Lassi, mist i doi, Fitness curd, Ice-cream and

recently it has launched two new products Sudha cool sip and

Sudha Mattha.

The best thing about its products is their quality with which

they never compromise. The products are certif ied by ISO:

9001:2000 & HACCP: IS: 1500:1998 and its nutrit ive values are

always maintained with the entire essential nutrient required for

good health.

10

Fig 2.3: Products of the Patna Dairy Project

.

Fig 2.4: New Products of Patna Dairy Project.

11

2.3: DISTRIBUTION CHANNEL

It represents the location from where a product can be

purchased. It is often referred to as the distr ibut ion channel. It

includes the booths, retail outlet and the township under

marketing. The distr ibution channel is so strong that it covers

almost al l the corners of the Bihar . The f igure below shows the

distribut ion channel through which Sudha dairy’s products reach

to its customers.

Fig 2.5: Distribution Channel for the Milk and Milk Products

AREA OF OPERATION

In Bihar, SUDHA has a brand of COMFED came up on the

lines of co-operative societ ies. Sudha Dairy came into existence

on 1983 by the law passed in parl iament. SUDHA is just a brand

name of Bihar.

The law passed in the parliament gave rise to COMFED.

COMFED came up on the pattern of Anand Milk Co -operative

Sudha Dairy milkand milk products

Dealers

Retailers Townships undermarketing

Whole daybooths

Customers

12

Federat ion (GUJARAT) and its f irst kind in the world. The founder

of SUDHA was Mr. S.VIJAY RAGHVAN. There are 5 milk unions

under Sudha. Each have an Autonomous right but under the

direct control of COMFED.

Milk Union:-

1. Vaishal Patl iputra Dugdh Utpadak Sahkari Sangh Ltd.

Patna.

2. Deshratna Dr. Rajendra prasad Dugdh Utpadak Sahkari

Sangh Ltd. Barauni .

3. Tirhut Dugdh Utpadak Sahkari Sangh Ltd. Muzaffarpur.

4. Mithila Dugdh Utpadak Sahkari Sangh Ltd. Samastipur

5. Shahbad Dugdh Utpadak Sahkari Sangh Ltd. Arrah

In the post white revolution era, the Dairy Industry l ias

undergone phenomenal change & packaged milk brands like

Sudha, Raj etc which has gained tremendous signif icance in the

market. The scenario has enabled emergence of different players

in the market with varied range of dairy based packaged product .

The city of Patna has also visualized this changing market

dynamics over the last couple of decades. The proposed market

research is being developed on the hypothesis that “sustained

growth of any brand depend upon the brand’s abil i ty to be

adaptable & responsive to the changing market dynamics ” with

the assumption of

1. Customers are price sensit ive

2. Customers exhibit brand preference

3. Customers want new services at the outlets

In the present scenario Patna Dairy, leading packaged Milk

& Milk products producer with brand name Sudha, faces

competit ion with numerous local, National brands, Raj Dairy &

also unrecognized Dairy market.

13

PRESENT STATUS:

MILK PROCUREMENT:At present 1285 functional Dairy Societ ies in the area of

PDP covering the distr icts of Patna, Vaishali, and Nalanda &

Fringe areas of Saran with a total membership of 77035. The

daily average procurement of milk has reached up to 167808

liters during year 2009-2010. It is hoped that the project will

collect above one & a half lakhs liters of milk per day in

commencing year.

There are 198 nos, of women co-operatives exclusively

managed & run by rural women folk. While the union has f airy

good no. of functional societies by increasing the members

participat ion

The Union, in addit ion to providing a ready & stable market

for the rural ly produced milk at the door step has been providing

various facil it ies required for milk production enhancement viz.

Artif icial Insemination (AI) with frozen semen, Veterinary First Aid

(VFA), Vaccination, Supply of balanced feed, supply of fodder

seeds, treatment of paddy/straw/wheat/husk with urea, supply of

Urea Molasses Block (UMB) etc. on no prof it no loss basis. The

response from the milk producers for all these has been

exceedingly encouraging & the union is in the process of

extending these facil it ies to more societies & farmers.

FEEDER BALANCING DAIRY:

The Feeder Balancing Dai ry with a capacity to handle 1.84lakh li tres of milk per day (LLPD) has facil it ies for manufacture ofmilk powder, Butter, ghee, ice cream, Peda, Paneer & Plain/MistiDahi.

The production & marketing of Table Butter under the brandname ‘SUDHA’ was introduced from lst October, 1993 & theresponse has been encouraging.

14

The marketing of SUDHA brand of ice cream in Patna after

test marketing in August -September, 1994 was formally launched

from April, 1995. The init ial response has been more than

satisfactory.

The marketing of Sudha brand Plain/Mist i dahi in Patna was

started in October-November, 2001 & was formally launched from

November, 2001. The init ial response for this product too been

over whelming.

The marketing of Sudha brand Lassi in Patna started in

Apri l- may 2003.

QUALITY & PRODUCTIVITY ACTIVITIES:The Dairy Plant Management Programme (DPM) was

introduced in the year 1992 followed by Quality Assurance

Programme (QAP) in the year 1993 with the help of NDDP. This

resulted in bringing about a posit ive change leading to viabi l ity of

the project coupled with lowering of operational costs on one

hand & globalization of Indian economy in early 90’s it felt that

the organization should strive to make its total outlooks, approach

& system of highest standards. Accordingly, it was decided in the

year 2001 that the organizat ion should go in for ISO certif ication

both in Quality Management System & Food Safety. This process

was successfully completed leading to ISO-9001: 2000 & HACCP

ISO-9001:2000 & HACCP (IS-15000) cert if icat ion by Bureau of

Indian Standards in March, 2002.

National Productivity Council, New Delhi, has honored the

project with “BEST PRODUCTIVITY PERFORMANCE” award for

the three years 2000 - 2001, 2000 - 2002, & 2005 - 2006.

2.4: Milk Procurement Enhancement Program

This technical inputs program is one of the crucial activit ies

of Patna Dairy and is the major strength responsible for its

success. The main technical inputs given to milk producers under

15

this programme include breeding facil ity, animal health cover,

feed & fodder and extension/training services.

Table 2.2: Progress of Milk Procurement Programmes of PatnaDairy Project

S.No Milk Procurement 2006-07

2007-08

2008-09

2009-10 2010-11

1 Dairy Cooperat ivessociet ies Nos. 1277 1350 1157 1482 1621

2 Average ProcurementTKPD 159 129 92.82 151.52 268.30

3 Catt le Feed/Sale MT 156 215 230 175 242

4 Art if icial InseminationCenters Nos. 250 275 291 327 382

5 Art if icial InseminationPerformed Nos. 157764 139949 124545 189636 207416

Source: Ranchi Dairy’s Annual Progress ReportTKPD=Thousand Kilogram per DayMT= Metric tonnes, AI= Artif icial Insemination

Table 2.2 shows the progress of milk procurement programme of

Patna Dairy Project from year 2006-07 to 2010-11 under which

the number of Dairy co-operat ive societ ies increased from 1277

to 1621, average procurement increased from 159 to 268.30

TKPD, cattle feed/sale increased from 156 to 242 MT, the number

of Artif icial Insemination centers increased from 250 to 382, and

number of Artif icial Insemination performed increased from

157764 to 207416.

16

Infrastructure (Plant) of the Patna Dairy Project

Fig.2.6: Processing Plant

Fig 2.7: Pasteurization Plant:

17

Fig 2.8 Laboratory for Quality Test

Fig 2.9: Product Packing

18

PROFILE OF STUDY AREA

BACKROUND OF STUDY AREA

Patna was one of the milk shed identif ied under ‘Operat ion

Flood-1’ (OF-1) for implementation of the program. A hundred

thousand liters per day capacity Feeder Balancing Dairy (FDB)

&100 MT per day capacity feed plant (CFP) were set up under

this program.

LOCATION

Patna is capital town as well as distr ict of Bihar. It is

located in West Bihar and surrounded by Samastipur, Vaisha li,

Bhojpur, Nalanda, Jahanabad and Begusarai distr ict of Bihar.

PATNA TOWN AT A GLANCE

As per the year of 2011, Patna had population of

5,772,804 out of which male and female were 3,051,117 and

2,721,687 respectively. There was change of 22.34 percent in the

population compared to population as per 2001. In the previous

census of India 2001, Patna District recorded increase of 30.17

percent to its population compared to 1991.

The init ial provisional data suggest a density of 1,803 in

2011 compared to 1,474 of 2001. Total area under Patna distr ict

is of about 3,202 sq.km.

Average literacy rate of Patna in 2011 were 72.47

compared to 62.92 of 2001. If things are looked out at gender

wise, male and female l iteracy were 80.28 and 63.72 respectively.

For 2001 census, same f igures stood at 73.34 and 50.83 in Patna

Distr ict. Total l iterate in Patna Distr ict were 3,527,409 of which

male and female were 2,066,494 and 1,460,915 respectively. In

2001, Patna Distr ict had 2,453,501 in i ts total region.

With regards to Sex Ratio in Patna, it stood at 892 per

1000 male compared to 2001 census f igure of 873. The average

19

national sex ratio in India is 940 as per latest reports of Census

2011 Directorate.

Description 2011 2001

Actual Population 5,772,804 4,718,592

Male 3,051,117 2,519,942

Female 2,721,687 2,198,650

Population Growth 22.34% 30.17%

Area Sq. Km 3,202 3,202

Density/km2 1,803 1,474

Proportion to Bihar Population 5.56% 5.69%

Sex Ratio (Per 1000) 892 873

Child Sex Ratio (0-6 Age) 899 923

Average Literacy 72.47 62.92

Male Literacy 80.28 73.34

Female Literacy 63.72 50.83

Total Child Population (0-6 Age) 905,708 818,994

Male Population (0-6 Age) 476,906 425,962

Female Population (0-6 Age) 428,802 393,032

Literates 3,527,409 2,453,501

Male Literates 2,066,494 1,535,672

Female Literates 1,460,915 917,829

Child Proportion (0-6 Age) 15.69% 17.36%

Boys Proportion (0-6 Age) 15.63% 16.90%

Girls Proportion (0-6 Age) 15.76% 17.88%

20

Fig. 3.1 Population graph of Patna (Bihar)

Descript ion 2001 Actual Populat ion 5,772,804 4,718,592

Male 3,051,117 2,519,942 Female 2,721,687 2 ,198,650

Population Growth 22.34% 30.17% Area Sq. Km 3,202 3,202

Density/km2 1,803 1,474 Proport ion to Bihar Population 5.56%

5.69%

Description Rural Urban

Population (%) 56.52 % 43.48 %

Total Population 3,262,711 2,510,093

Male Population 1,718,206 1,332,911

Female Populat ion 1,544,505 1,177,182

Sex Ratio 899 883

Child Sex Ratio (0-6) 914 872

Child Populat ion (0-6) 592,733 312,975

Male Child(0-6) 309,737 167,169

Female Child(0-6) 282,996 145,806

Child Percentage (0-6) 18.17 % 12.47 %

Male Child Percentage 18.03 % 12.54 %

21

Female Child Percentage 18.32 % 12.39 %

Literates 1,717,071 1,810,338

Male Literates 1,058,019 1,008,475

Female Literates 659,052 801,863

Average Literacy 64.31 % 82.40 %

Male Literacy 75.12 % 86.51 %

Female Literacy 52.24 % 77.75 %

In census enumeration, data regarding child under 0 -6 age

were also collected for all distr icts including Patna. There were

total 905,708 children under age of 0-6 against 818,994 of 2001

census. Of total 905,708 male and female were 476,906 and

428,802 respectively. Child Sex Ratio as per census 2011 was

899 compared to 923 of census 2001. In 2011, Children under 0 -6

formed 15.69 percent of Patna District compared to 17.36 percent

of 2001. There was net change of -1.67 percent in this compared

to previous census of India.

Patna District population constituted 5.56 percent of total

Bihar population. In 2001 census, this f igure for Patna Distr ict

was at 5.56 percent of Bihar populat ion.

All details regarding Patna Distr ict have been processed by

us after receiving from Govt. of India. We are not responsible for

errors to population census details of Patna Distr ict.

22

Fig 3.2: Map of BIHAR shows the map of Bihar with all its district and

Patna as capital.

23

METHODS AND MATERIALS

This chapter deals with the detai ls of methods and material used

to accomplish the objective of the project under study.

The details framework of the chapter is designed as below:

4.1: Organization

The present investigat ion was under taken as implant

training in the MBA (Agri.) program of 10 weeks at “the Patna

Dairy Project (Sudha Dairy)” under the project entailed “Study onmarket share of different brands of milk & milk products inPatna town with special reference to Sudha Dairy” .

4.2: The study area

The Sudha Dairy (Patna Dairy Project), which is a unit of

Bihar state cooperative Milk Producers Federat ion Limited,

situated in Phulwari sarif , Patna, Bihar . It commands the

maximum distr icts of Bihar for procuring milk from primary co-

operative society located in dif ferent vil lages of those distr icts

and after processing it at Patna, it is distributed to urban area

and semi urban areas of state. The Patna unit was selected for

the project, as its networking area is large.

Selection of dealer and distributor

There is number of milk booths of Sudha Dairy are located

at regular interval of throughout the town. Dairy is directly

transport its milk and milk products to dealers then the dealers

send to booths, retail out lets according to requirement and sale of

products. So from these sources customers purchase Sudha

Dairy products.

Selection of Respondent:

The Patna town of Patna distr ict was divided into 10 zones for

distribut ion and sale of milk and their products. Out of 10 zones,

zone number 5 (Mahendru) selected for knowing the consumer

24

performance. Under the selected zone, 150 customers were

selected randomly to know the consumer behavior about Milk and

their products of Sudha Dairy Patna. Dif ferent parameter ie,

Quality, Price, Packing, Services, Quantity, Taste etc. were

consider to know the performance of Milk and their products

processed by Sudha Dairy, Patna. Details about dif ferent zones

under Patna town are given below:

Criteria for selection of respondents:

Respondents are considered on the basis of active user of

only Sudha Dairy products. They use dairy products of Sudha

Dairy only. They motivate others also to use Sudha Dairy

Products.

Table 4.1 Different zones of Patna town:

S.N. Name of Zone Area Covered No. of Booth

1 Zone No. 1 Danapur 06

2 Zone No. 2 Kakarbagh 28

3 Zone No. 3 Rajendra Nagar 12

4 Zone No. 4 Kadamkuan 03

5 Zone No. 5 Mahendru 05

6 Zone No. 6 Patna city 08

7 Zone No. 7 Gandhi maidan 07

8 Zone No. 8 Boring Road 04

9 Zone No. 9 Raza bajar 03

10 Zone No. 10 Naya Tola 04

4.3: Nature of data

Both primary and secondary nature of data are required in

the study. The secondary data was collected from the annual

report of the Sudha Dairy (Patna Dairy Project), regarding

25

Production, Sales & Market Share of Dairy. Primary data was

collected from selected respondent with the help of interview

schedule to fullf i l the objectives.

4.4: Period of study

The project work was init iated from 25 t h July to 10 t h October

2011 and the study pertains to the year 2011-12.

Method of Analysis:

The collected information and data from the various sources

were systematically tabulated and analyzed by using simple

arithmetic average and percentage methods:

Market share = Dairy product sales/Total sales x 100

Average =n

fx

26

PRESENTATION OF DATA AND FINDINGS

This chapter based on the information collected from

company, retai lers and sample respondent for estimation of

market share of milk and mi lk products of dif ferent competing

Companies in the study area and to measure the consumer

preference.

List of Major Player of Dairy in Patna town

There are some importanat major players of dairy sector in

Patna town. Mainly these companies have major contribution in

producing and selling of Dairy Products in Patna town. They are

listed below:-

1. Sudha Dairy (Patna Dairy Project ) Vaishal Patl iputra Dugdh

Utpadak Sahkari sangh Ltd.

2. Raj Milk co-operative Federat ion Ltd. (Raj)

3. Amrit Dugdh Utpadak Sahakari Sangh Ltd. (Amrit)

4. Amul (Gujrat Milk Co-operative Federation Ltd.)

Market share

Companywise market share of milk of selected players in

the study area have been provided in the table 5.1

5.1Market share of Milk in Patna town (Companywise)

Perticulers Sudha Raj Amrit Amul Others Total

MilkQuantity(Ltr)

67215480 10347750 7300000 3650000 2737500 91250000

Value (Rs.) 2150895360 331128000 226300000 124100000 82125000 2914548360

Marketshare (%)

( 74 ) ( 11 ) ( 8 ) ( 4 ) ( 3 ) ( 100 )

Market share data shows that among the major player in

Patna town, Sudha Dairy was on top with (74 percent ) market

27

share of milk followed by Raj Dairy(11%), Amrit Dairy (8%), Amul

Dairy (4%) and Others contributed only (3%) of total market

share.

Fig-1 Compaywise market Share of Milk in the study area.

Table.5.2 Brandwise market Share of (Sudha Dairy).

Particulars

Milk Brand

Shakti(cream)

Gold(Full

cream)

Healthy(Toned)

Smart(DoubleToned)

Total

SellingQuantity

(Ltr)30246966 20164644 13443096 3360774 67215480

Value (Rs.) 967902912 685597896 403292880 94101672 2150895360

MarketShare (%)

45 30 20 5 100

Reference: - Sudha Dairy record 2010-11

28

Among the Brands of milk of Sudha Dairy in Patna town,

Shakti brand was on top with (45 %) market share followed by

Gold (30 %), Healthy (20 %) and Smart contributed (5 %) of total

market share among brand of Milk.

Shakti, 45%

Gold, 30%

Healthy, 20%

Smart, 5%

Fig 5.2: Market share of different brand of Milk of Sudha Dairy.

Market share of different milk products

The details about market share of different milk products of selected

major players have been provided in the table.

29

Table.5.3: The Market share (Volume wise) of different Milk Productsof selected major players.

Milkproducts Sudha Raj Amrit Amul Others Total

Peda( Kg) 28279 5141 5141 10283 2570 51414

Value (Rs.) 7069750 1233840 1259545 2673580 603950 12840665MarketShare ( 55%) ( 10%) ( 10%) ( 20%) ( 5%) (100%)

Paneer( Kg) 47200 7860 4720 12586 6293 78600

Value (Rs.) 10384000 1650600 991200 2768920 1258600 17053320MarketShare ( 60%) (10%) ( 6%) ( 16%) ( 8%) (100%)

Ice Cream( Kg) 68400 9949 8705 27360 9949 124363

Value (Rs.) 5130000 746175 609350 2188800 696430 9370755MarketShare ( 55%) ( 8%) ( 7%) (22%) (8%) (100%)

Lassi ( Kg) 79700 11031 7356 12260 12260 122615

Value (Rs.) 3985000 551550 331020 674300 613000 6154870MarketShare (65%) (9%) (6%) (10%) (10%) (100%)

Curd ( Kg) 122900 15856 11892 21802 25766 198225

Value (Rs.) 10446500 1268480 951360 1853170 2061280 16580790MarketShare (62%) (8%) (6%) (11%) (13%) (100%)

Total( Kg) 346479 49837 37778 84291 56838 575223

Value (Rs.) 37015250 5450645 4142475 10158770 5233260 62000400

MarketShare (%) (60.23%) (8.66%) (6.56%) (14.65%) (9.88%) (100% )

In the study area all the major players sells the important

milk products e.g. peda, paneer, icecreem, lassi and curd. Among

the major players in Patna town Sudha Dairy was on top with

(60.23%) market share of Milk Products followed by Amul Dairy

(14.65%), Raj Dairy(8.66%), Amrit Dairy (6.56%), and Others

contributed (9.88%) of total market share. Sudha dairy also sells

all the milk products and also maintaining higher market share in

all the milk product. Overall i t could be concluded that Sudha

30

Dairy occupied f irst posit ion in market share for all the milk

products and about more than 50% market share were covered.

60.23%8.66%

6.56%

14.65%

9.85%

Market share (%)

Sudha

Raj

Amrit

Amul

Others

Figure 5.3: Market share (Volume wise) of Milk Products of different

companies in Patna Town.

Consumer preference

For measuring the Consumer preference, certain

parameters were considered to know the actual posit ion of

dif ferent products of Sudha Dairy and details are given in the

table.

31

Table-5.4 Consumer preference towards milk and milk products of

Sudha Dairy.

S.N. Parameters No. of

Consumer Percentage

1. AvailabilityA Available all types of products 57 38B Available few products 72 48C Not available 21 14

Total 150 1002. Quality/TasteA Better as compare to other local milk brands 96 64B Normal 18 12C Good 36 24

Total 150 1003. Quantity in packet

ASupply accurate quantity by PDP SudhaDairy

144 96

B Quantity not accurate 06 04Total 150 100

4. PriceA More price than local brand 39 26B Normal price 93 62C Less price than locality 18 12

Total 150 1005. PreferencesA Liking all the products 87 58B Liking some products 63 42C Not like any products 00 00

Total 150 1006. Service providedA Needed home delivery 66 44B Require return facility 18 12C Provision of credit facility 06 04

DSupply the products as per demand ofcustomer

27 18

ERequirement of coupon facility againstadvance payment

33 22

Total 150 100

32

The table shows that out of total respondents, about 14percent of sample respondents reported un availabil ity ofproducts in the Mahendru milk par lors. It was observed that only48 percent of respondents reported the availabi l i ty of fewproducts at the parlor and only 38 percents of respondents givetheir opinion about availabi l ity of al l type of products which theywant at milk parlor.

Quality is one of the most important factors, which help tocustomer for selection and purchase the products. In the studyarea 12 percent of respondent, considered as normal products.Although 64 percent of our respondent reported the quality ofSudha Dairy products was better than other local products. Only24 percents also reported that products were good in quality.

The results of customer opinion shows that samplerespondents were fully satisf ied with products quantity in packet.

Price is one of the important factors which place a importantrole to taking purchase decision. Data shows that 62 percent ofrespondents, purchases the products due to normal price, while26 percent of respondents reported price was more than localbrand products.

As per the factor of consumer preference, 58 percent ofsample respondents were shows their l ik ing for all the products ofSudha Dairy. Although 42 percent of respondent, l ike someproduct of Sudha Dairy.

Regarding the service provided by Sudha Dairy 44 percentrespondent needed home delivery services and also require thecoupon facil ity against advance payment.

Overall it could be concluded that most of customer(respondents) l ike the entire Sudha Dairy product but due tohigher price they avoid to purchase the product. The customeropinion about quantity and quality were in favor of Sudha Dairy.Efforts are needed to display the important feature of eachproduct of Sudha Dairy through various sale promotion activit ies.Sudha Dairy also try to supply more product at milk parlor l abel inthis way sales of dif ferent products of Sudha Dairy would beimproved in the study area.

33

4.5: SWOT Analysis

A business is a dynamic entity, it needs to continually adapt

and evolve to be able to survive and grow amidst competit ive

markets. One of the many tools that strategic planning experts

use to evaluate a business is the SWOT analysis. This simple but

extremely useful tool is designed to help an organizat ion to

identify the factors that affect the business and determine the

possible courses of action it can take to achieve an object ive.

Sometimes referred to as SOWT analysis, this term issimply an acronym of the four areas that strategic plannersconsider when making a SWOT analysis – they are Strengths,Weaknesses , Opportunit ies and Threats.

34

SUMMARY, CONCLUSION AND RECOMMENDATIONS

Livestock population plays signif icant role in the ruraleconomy of India. It contributes about 5 percent of total GrossDomestic Product (GDP) and one fourth of agriculture GDP (AgGDP). The sector is unique in term of employment opportuni t ies.as two third of female workforce in rural India is engaged inlivestock rearing. It is an integral part of mixed farming thatcharecterise Indian agriculture. Livestock manure is the majorsource of nutrients for crop production and for sustaining soilferti l i ty. It also provides cheap and nutrit ious food in the animalprotein. Livestock also maintains biodiversity and environmentconversation of energy.

In the liberal ized era, cooperat ive dairy plants are facingseveral competit ions from private dairy plants, milk vendorcontractor and other agencies dealing with milk procurement. Inthis situation, the analysis of procurement cost in dairy plantswould help in reducing the unnecessary costs in dair y plants. Sounder the ‘Operational f lood’ a large number cooperat ive societywere established to protect the interest of dairy farmersespecially marginal and small farmers for remunerat ive price ofmilk and to involve them with the great cause of cooperative forrural development.

Keeping in view the above aspects the project ent it led“Present Status, Market posit ion and consumer preference of Milkand milk products processes by Sudha Dairy (Patna DairyProject) was undertaken with the following specif ic objectives.

To measures the market shares of Sudha Dairy products(Patna Dairy Project).

To study the Consumer Preferences on Sudha Dairyproducts.

To identify the problems and suggest the measures toimprove the market share through an effective channel ofdistribut ion.

SWOT analysis of the Organization.

35

Conclusion of study

Under Sudha Dairy Patna, total 1621 number of Dairy

Cooperat ive Societ ies was in operat ion during 2010-11.

In functional societ ies, 43 to 100 percent were registered in

dif ferent distr ict of Patna Dairy Project (Sudha Dairy) during

2010-11. Only 76 percent of functional societ ies were

registered.

The maximum (893.14) and minimum (89.44) lakh lit re/day

Milk was procured from the Sudha Dairy and other Dairies

in Patna during the year 2010-11.

On an average 678.31 and 87.46 lakh liter/day Milk were

sold during 2010-11.

The increased trend of average milk price was found during

2001-02 to 2010-11 except 2002-03 and 2005-06. Over all

on an average milk price was to est imated Rs. 18/ l i ter.

Result also shows that there was less variat ion in sel l ing

quantity of dif ferent brand of milk during dif ferent month

which indicate there was no seasonal effect in sel l ing

quantity of milk and there is lot of scope to increase the

number of customer in the study area.

Over al l it could be concluded that more efforts are required

by the milk parlor /booth to increase the sale quantity of

dif ferent product than gain the more prof it.

It can be concluded that the variat ion in sale quantity of

dif ferent brand of milk in dif ferent zone may be due to liking

as well as service providing to the customer in the area of

zone.

36

Recommendations

The Sudha Dairy (Patna Dairy Project) processed the numberof products, but people do not aware about all the features ofproduct processed by Sudha Dairy, so its need to improvethese aspects through various promotional act ivit ies.

Strengthen the Market structure then sale of milk and theirproduct can be improved.

The Sudha Dairy should have an annual survey of the productso that the consumer demands and there taste can be checkout.

There should be provision to provide more margins to the milkparlor incharge/manager for milk and their products processedby Sudha Dairy that will be helpful to increase the sale ofproducts.

Make product in di f ferent f lavor according to local preference .

Make monthly or yearly coupon or scheme for dealer andretai lers for product promotion.

Payment that wil l also helpful to easy transaction. The couponof different amount may be issue by Sudha Dairy in advance.

The Sudha Dairy should produce such products, which are inmore demand, such as the ice cream, which is l iked more bythe youth.

Provide the transportation faci l i t ies for the interior rural areas.

The Sudha Dairy should increase the market for the fitnesscurd, as it is more prof itable than the other products.

The Sudha Dairy in case changes the price of the product thenit should make changes with a strong reason so thatconsumer does not go away.

The promotional activity l ike advert isement in radio & l ocal TVchannel should be used.

The Sudha Dairy should give incentives to the dealers and theconsumer.

37

INTERVIEW SCHEDULE FORRESPONDENTThere is several milk brands with their various productrange available in market. viz., Sudha, Amul, Raj,Amrit, etc. Please read the following questions carefullyand give your answer as you like…

1. Do you consume milk or milk product ?

(i) Yes (ii) No

2. Which brand of milk you are consuming most ? orwhich milk brand you prefer most ?

(i) Sudha (i i) Raj (iii) Amrit (iv) Amul (v) Others.

3. What is quality of Sudha Dairy Products ?

(i) Best (ii) Better than other brand products.

4. Which milk brand has best price on the basis of qualityof their products ?

(i) Sudha (ii) Raj (i ii) Amrit (iv) Amul (v) if other-specify name

5. Which product of Sudha Dairy you are consuming mostor which product do you like most ?

Give/ specify name of product –

6. Price for that product is affordable best price ?

(i) Yes (ii) No

7. How do you say Sudha has best / better qualityproducts, price, availability, products range, etc in yourview ?

Give ans in brief -----

38

8. Which milk brand has maximum products range ?

(i) Sudha (ii) Amul (iii) Raj (iv) Amrit

(v) if other-specify name…

9. Which product of Sudha Dairy has best price ?

(i) Milk (ii) Curd (iii) Lassi (iv) Peda

(v) Paneer (vii) if other products, specify.

10. Which product of Sudha Dairy has best quality ?

(i) Milk (ii) Curd (iii) Lassi (iv) Peda(v) Paneer (vi) if other products- specify..

11. Which product of sudha has frequent availabilityin market ?

(i) Milk (ii) Curd (iii) Lassi (iv) Peda(v) Paneer (vi) if other products- specify..

12. How do u rank all these brand according to you ?

Sudha, Amul, Raj, Amrit.

13. Which brand has more availability in market ?

(i) Sudha (ii) Amul (iii) Raj (iv) Amrit.

14. You have more trust on which brand ?

(i) Sudha (ii) Amul (iii) Raj (iv) Amrit.

15. What do you think about supply and availability ofSudha brand of Milk and Milk products at everywhere inall towns in all lanes ?

Give your ans….

16. What can you say about services of Sudha ?

Give your ans in brief…

39

17. What do you say about of retailer-customerrelationship of Sudha ?

Give your ans in brief…..

18. How is taste of Sudha Dairy products compare toother brand of milk ?

(i) Best (II) Better (iii) Good (iv) Almost similar

19. Reason for taking up Sudha Milk and Milk / Milkproducts

………………………………………………………………………………………………………………

20. Suggestion for improvement in quality and sale ofSudha Milk / Milkproducts…………………………………………………………………………………………………………………………………………………………………………………………………………………

Thank You

Customer Address & contact no. ……

………………………………………………………………………..

Signature of customer Signature of Surveyer

Name………………… Name…………………..Date ………………….

40

VITA

The author of this report Mr. Praanav Kumar S/O Mr.

Siyaram Prasad Yadav was born on 25 th December 1985 at

Singheshwar, Dist- Madhepura, BIHAR.

He had completed his primary education and higher

secondary education with science group from Will iams High

School, Supaul & B.S.College Singheshwar, Madhepura from

Bihar Board B.S.E.B. Patna and B.I.,E.C. Patna respectively.

After this he joined College of Agriculture, Mandya,

University of Agricultural Sciences , Bangalore in 2006 &

passed the B.Sc (Agriculture) with 6.89 OGPA out of 10 point

grade scale ie, 68.90 % in the year 2010. Subsequently he joined

MBA (Agriculture), department of Agricultural Economics and

Farm Management, in the Jawaharlal Nehru Krishi VishwaVidyalaya, Jabalpur (M.P.) for the session 2010-12 & for the

completion of his Degree Program, this project report has been

submitted as partial fulf i l lment of MBA (Agriculture) degree.