A Project

on

“CUSTOMER BUYING BEHAVIOR ON DAIRY PRODUCTS”

On Job Title:

“Product Placement & Distribution Expansion”In

By

DEEPIKA BOMMU

2T3-09

POST GRADUATE DIPLOMA IN MANAGEMENT

SIVA SIVANI INSTITUTE IN MANAGEMENT

CONTENTS• On the Job Training

Task Assigned

Plan of Action

Achievement

• Indian Dairy Industry

• Introduction

Objectives

Limitations

Methodology

Scope

• Company Profile

• Data Analysis

• Findings and suggestions

• Learning

• Bibliography

ON THE JOB TRAINING

TITLE: PRODUCT PLACEMENT AND DISTRIBUTION

EXPANSION

TASK ASSIGNED:

I have to visit the retail outlets, Bakeries and Hotels in the assigned areas

and convince them to buy Heritage products.

The Assigned area for me is from Ameerpet to Mehdipatnam.

PLAN OF ACTION:

In the assigned area every day I should visit 20-25 outlets and convince the

retailers in taking the products from Heritage Foods Limited and find out

about product quality and service offered.

ON THE JOB TRAINING

ACHIEVEMENT

By the end of the Internship period, I have added 206 new outlets to

Heritage and also 68 existing outlets. In total generated a business worth

Rs.1,33,200 and achieved the target of adding 200 retail outlets promoting

various products of Heritage Foods India Ltd.,

Received Rs. 5750/- as a stipend and words of appreciation from the top

management of Heritage Foods Ltd.

LEARNINGS

• I have learnt how to approach the customer and engage them in

discussion.

• I learnt to convince the customer to buy products.

• I learnt how to behave in corporate environment.

• I learnt to be sportive and carryon with my work even when I am not

successful in convincing retailers.

INDIAN DAIRY INDUSTRY

• India is the largest milk producer in the world.

• India has vast resources of livestock, which play an important role in

the national economy.

• The Dairy Production India is 132.4 million tons as per 2012-2013

statistics.

• The growth of the dairy sector during the last three decades has also

been impressive, at more than five percent per annum.

• An individual needs 250gm of milk daily, but the availability is just

170gm.

INTRODUCTIONSTUDY:

• The study is to know the customers buying behavior on Dairy Products

OBJECTIVE:

• To know the buying behavior of the customers on the Dairy Products.

• To know the basis on which customer makes decision in choosing the Brand.

• To find the most chosen Dairy Brand among the respondents.

METHODOLOGY:

• A quantitative research is done using survey technique.

• Type of research - Descriptive research

• Type of sampling - Convenience sampling

• Sample size– 72

• Research is done using questionnaire which is structured and has both open-ended & close-ended questions.

INTRODUCTIONSCOPE OF STUDY

Today the market is customer centric. Reaching the customer needs is the ultimate goal of any organization. By knowing the expectations of the customer, organization can serve the customers better.

LIMITATIONS

• Limited time

• Limited Area

• Lack of Interest in Respondents

• Boredom in Respondents

• Lack of awareness in Respondents

• Mostly the feedback was taken online, Hence it may not be accurate as I have not interacted with them personally.

COMPANY PROFILE

HERITAGE FOODS INDIA LIMITED:

The Heritage Group, founded in the year 1992 by Sri Nara Chandra Babu Naidu

The Managing Director is Sri N Bhuvaneswari Devi.

MISSION:

Bringing prosperity into rural families of India through co-operative efforts and

providing customers with hygienic, affordable and convenient supply of "Fresh and

Healthy " food products.

VISION:

To be a progressive billion dollar organization with a pan India foot print by 2020.

To achieve this by delighting customers with "Fresh and Healthy" food products,

those are a benchmark for quality in the industry.

COMPANY PROFILE

It four-business divisions under its flagship Company Heritage Foods

• Dairy

• Retail

• Agri

• Bakery

The company has market presence in Telangana, Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Maharastra, Odisha and Delhi and its retail stores across Bangalore, Chennai.

The products offered by the Heritage are:

Category 1: Milk,

Category 2: Fresh Products,

Category 3: Long Life Products

Categoty 4: Ice Creams

Category 5: FMCG Products.

The Annual Turn over of Heritage Foods is crossed Rs. 1606 crores in 2012-2013.

DATA ANALYSIS

A survey was conducted by asking the feedback of the customer on a

questionnaire prepared to know the customer’s buying behavior on Dairy

Products.

• For the above survey 72 responses have been recorded.

• Among the 72 respondents

• 36% were Male and 64% were Female.

• 3% were below 20 years, 52% were between 20 and 30 years and 44%

above 30 years.

OCCUPATION OF RESPONDANTS

0

5

10

15

20

25

30

3535

15

20

30

MONTHLY INCOME

0

10

20

30

40

50

60

70

80

Below10000

10001 to20000

Above20000

6

18

76

PREFERENCE TO BUY DAIRY

PRODUCTS

0

10

20

30

40

50

60

70

80

90

100

YES NO

96

2.5

MONTHLY EXPENDITURE ON DAIRY

PRODUCTS

05

10152025303540

PREFERRED BRAND

0

5

10

15

20

25

30

35

40

45

HERITAGE TIRUMALA JERSY NESTLE

42

14 15 14

PREFERRED PRODUCT

4.00%

25.30%

8.00%

2.70%

28.00%

18.70%

4.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Butter Butter Milk Lassi Ghee Cup Curd FlavoredMilk

Paneer

Product

REASON FOR PREFERRING

CURRENT BRAND

43

8

31

15

3

0

5

10

15

20

25

30

35

40

45

50

SATISFACTORY LEVELS WITH

RESPECT TO THEIR CURRENT

BRAND

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

Extremely Satisfied

Satisfied

Somewhat Satisfied

Unsatisfied

10.70%

56.00%

30.70%

2.70%

Responses

WILLINGNESS TO CHANGE TO

OTHER BRANDS

0

10

20

30

40

50

60

70

YES NO

FINDINGSAs per the study we can know that there is no much difference between the market leader and rest of the companies.

As per study Customers are preferring brand which is offering good quality though it is of high price.

Study shows that customers are not very loyal to the current brand they are using so, they are are ready to change the brand.

From the survey, it was known that majority of the families spending between Rs.1000-1500 per month.

As the per capita availability is low and production is more there is large scope for dairy industry in future.

Dairy products possess very low shelf life, Hence the supply chain of the company should be efficient.

Not all Dairy products are available to all the population so the companies have to focus more on its reach to the customers.

There are segments of customers who are slightly satisfied and not satisfied with the current brand. Companies has to focus on those groups.

BIBLIOGRAPHY

http://www.dairyfoods.com/

http://www.nddb.org

http://www.indianmirror.com

http://www.indiadairy.com/

http://www.heritagefoods.co.in/

http://www.creamlinedairy.com/

http://www.tirumalamilkproducts.com

THANK YOU