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CENTRE CODE NO. 01696

A STUDY ON

CONSUMER AWARENESS & SUPPLY CHAIN

MANEGEMENT OF SUDHA DAIRY

SUBMITED TO SIKKIM MANIPAL UNIVERSITY

IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE AWARD OF THE

DEGREE OF MASTER OF BUISNESS

ADMINISTRATION MBA(2008-2010)

SUBMITTED BY:

RAJESH KUMAR SINHAROLL NO. - 510812241

MBA (MARKETING MANAGEMENT)

SESSION (2008-2010)

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DECLARATION

I hereby declare that the project entitled

CONSUMER AWARENESS & SUPPLY

CHAIN MANEGEMENT OF SUDHA DAIRY

Submitted in partial fulfillment of the requirements for

the degree ofMaster of Business Administration to

Sikkim-Manipal University, India, is my original work

and not submitted for the award of any other degree,

diploma, fellowship or any other similar title of prizes.

Place : Patna (RAJESH KUMAR SINHA)

Date : Reg. No.: 510812241

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EXAMINERS CERTIFICATION

The Project Report of

RAJESH KUMAR SINHACONSUMER AWARENESS & SUPPLY CHAIN

MANEGEMENT OF SUDHA DAIRY

is approved and is acceptable in quality and form

Internal Examiner External Examiners

(Name and designation) (Name and designation)

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CYBOTECH CAMPUSTM

(A Unit of Anwesha Pvt Ltd)2nd Floor, Verma Centre, Boring Road, Patna

_____________________________________

CERTIFICATE

This is to certify that the project report entitled

CONSUMER AWARENESS & SUPPLY CHAINMANEGEMENT OF SUDHA DAIRY

Submitted in partial fulfillment of the requirements for the degree

ofMaster of Business Administration of

Sikkim Manipal University of Health, Medical and technological

sciences

(RAJESH KUMAR SINHA)

has worked under my supervision and guidance and that

no part of his report has been submitted for the award of

any other degree, Diploma, Fellowship or other similar

titles or prizes and that the work has not been publishedin any journal or Magazine.

Prof.R.B.Singh

MBA(P.M.I.R)

(Guides Name and Qualification)

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PREFACE

The study of Consumer awareness and Supply Chain managent occupies a

significant place in the study of marketing effectiveness of any firm,

because sale is life blood of the business. With the expansion of business,

the life of the market to be covered to sale large quantity of goods

becomes too large to control by the owner of the business under taking

personality. Hence, this arises the need of sales organization to perform

the various functions. These functions include market research, product

planning, sales for casting, determination of selling policy, selection of

channel of distribution, selection, training,

supervision and remuneration of the sales man etc.

Indeed, Supply chain is any sequence of institutions from the producers to

the consumer including one or a number of middle men. I have undergoneSudha Dairy Project, in Patna during my project training. I conducted the

market survey and determined the channel of distribution of product of

Sudha Dairy in Patna.

To emphasize the very practical aspect of management education

Cybotech Campus, Patna, Patna makes necessary arrangement for Project

training for MBA course.

In order to collect the primary data I visited the outlets of different area as

Well as conducted the many shops and whole sellers survey.

I hope that our finding and suggestion will be handy and useful in

improving their market share.

I am extremely obliged to the Mr. Vijoy Kumar & my guide Mr. Abhijit

Kumar who helped me during training period and report writing.

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ACKNOWLEDGEMENT. There are a few things that come in the life of a person may be for a

short span of time, but leaves an ever shining impetration into the mind.

My training is one of the events, which will be ever shining in my life.

While submitted this project report I feel my moral duty to pay thanks and

mention the names of the names of the person whose co-operation

guidance and constant encouragement helped me in each and every step

during the preparation of this project work.

First of all, I express my gratefulness to our Centre Head Manoj Kumar

for the excellent academic environment and commendable facilities. I

enjoyed as a

student of the institute.

I am indebted to my guide Mr. Abhijit Kumar, Business Head, Cybotech

Campus, Patna for his valuable guidance during the course of my study, Iexpress my sincere thanks to him. 1 express my eternal gratitude to Mr.

Vijoy Kumar Marketing Manager S D P, Patna for permitting me to carry

out this project work in his organization. I am also thankful to Mr.

Niranjan Prasad for their substantial help and insightful suggestion during

the course of the study.

Once again, I express my hurtful gratitude to the institute family and staff

of the organization for their co-operation for this project report.

(RAJESH KUMAR SINHA)

.

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OBJECTIVE

Understanding customers perception on Patna Dairy as abrand.

Understanding awareness regarding the hygienic factor of using

. Packaged milk

Understanding different reasons (good or bad) for them to use or

not to use, the factors affecting its success & the modus operand

involved

Competitors Analysis on product attributes.

Market analysis with respect to Distributors or Retailers

involvement in the companys success.

TABLE OF CONTENT

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CHAPTER - 1 INTRODUCTION1.1 Introduction

1.2 Objectives

1.3 Profile of Organization

1.4 Organizational Structure

1.5 Government Policy

CHAPTER - 2 ACTIVITIES & PRACTICES OF P.D.P.2.1 Procurement of Raw Materials

2.2 Marketing Strategy

(a) Products

(b) Pricing Policy

(c) Promotional Devices

CHAPTER - 3 INTRODUCTION & THEORETICAL BACKGROUND

3.1 Introduction to marketing

3.2 Definition of Management

3.3 Consumer Behavior & its Concept

3.4 Concept of Consumer Behavior

3.5 Consumer Responses

3.6 Supply chain Management

CHAPTER -4 MARKETING RESEARCH & METHODOLOGY

4.1 Marketing Research4.2 Sources of Data Collection

4.3 Research Approach

4.4 Research on Methodology

4.5 Data Collection & Analysis of Information

CHAPTER - 5 ASSUMPTION OF MARKET5.1 Analysis & Statement of Consumer Responses

5.2 Consumer Reaction

5.3 Representative of Sudha Dairy

5.4 Analysis of Strength, Weakness, Opportunities &Threats

5.5 Limitation

Appendix

Questionnaire

Bibliography

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CHAPTER 1. INTRODUCTION

1.1 Introduction

1.2 Objectives

1.3 Profile of Organization1.4 Organizational Structure

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INTRODUCTIONBefore dealing-with the topic profile, I would like to state here a

background of co-operative societies: a principal on which SUDHA

works.

India primarily is a country of farmers. She is largely

dependent on the agriculture products and animal husbandry under the

cover of Agriculture.

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 milk and manufacturing milk products in

the country are in the co-operative sectors. Under the five year plan, milk

marketing flourished a lot.In Bihar, SUDHA has a brand of COMFED came up on the

lines of co-operative societies. Sudha came into existence on 1983 by the

law passed in parliament. SUDHA is just a brand name of Bihar.

State co-operative Milk Federation LTD (COMFED). The

law passed in the parliament gave rise to COMFED. COMFED came up

on the pattern of Anand Milk Co-operative Federation (GUJARAT) the

first of its kind in the world . The Bihar State Dairy Co-operative were

passed on to COMFED. The founder of SUDHA was Mr. S.VIJAY

RAGHVAN. There are 5 milk union under Sudha . Each have anAutonomous right but are under direct control of COMFED. They are:-

1. Vaishal Patliputra Dugdh Utpadak

Sahknri Sangh Ltd. Patna.

2. Deshratna Dr. Rajendra pd. Dugdh I

. 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

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BACKGROUND

Patna was one of the milk shed identified under Operation Flood-1 (OF-1) for

implementation of the programme. A hundred thousand litres per day capacityFeeder Balancing Dairy (FDB) &100 MT per day capacity feed plant (CFP) were

set up under this programme.

In order to implement the programme properly & also for organizing the

milk procurement activities & for the management of above two plants, the Bihar

State Dairy Corporation (BSDC) was formed 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 corporation in organizing & developing the co-operatives. Though

the progress in the initial years was encouraging the programme for obvious

reasons couldnt achieve the goals for which it was established.

Subsequently the State Govt. felt it necessary to request the DAIRY

BOARD (NDDB) for taking over the infrastructure created on management basis.

The National Dairy Development Board (NDDB) took over the management of

infrastructure with effort from 1SI October 1983 under the banner of Patna Dairy

Project (PDP).

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PROGRESS OF PATNA DAIRYThe National Dairy Development Board (NDDB) immediately after taking over

the project positioned an integrated Spear Head to restructure the milk

procurement activities & for streamlining the working of the FDD & CFP. Underthe management of NDDB the project had not only made excellent progress but

had been able to establish the fact that the co-operatives could function equally

well in Bihar too & what is essential is the atmosphere & guidance.

Along with the organization of milk procurement activities &

management of both the plants on commercial lines, the NDDB took special care

to develop the Vaishal Patliputra Dugdh Utpadak Sahkari Sangh ltd. (VPDUSS)

the milk shed level co-operatives for taking over the project once the DAIRYBOARD withdraws its management. NDDB handed over the Patna Dairy Project

(PDP) to Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd. (VPDUSS) with

effect from 1st July 1988.

PROGRESS UNDER VAISHAL PATLIPUTRA

DUGDH UTPADAK SAHKARI SANGH LTD

(VPSDSS)

The major tasks before the Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd.

(VPDUSS) was to see that the excellent infrastructure developed by the National

Dairy Development Board (NDDB) is not only maintained but also see that the

pace of development is not hampered. The vpduss has been able to accomplish

these task to a greater extent. Comparatively progress of the project over the

years is enclosed as annexure-l (a) & (b).

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PRESENT STATUS

MILK PROCUREMENT:

There are at present 1285 nos. of functional Dairy Societies in the area of

PDP covering the districts of Patna, Vaishali, and Nalanda & Fringe areas of

Saran with a total membership of 77035. The daily average procurement has

reached up to 167808 liters during year 2008-2009. 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 fairy good no. of functional

societies by increasing the members participation. The graphs showing the nos. of

functional societies, no. of members increasing yearly, & daily average lean

months procurement are enclosed as Annexure no. II, III, & V. The co-operative

Development (CD) programme was also initiated from March, 1991 with the

assistance of NDDB. The graph showing the average producers price over the

year is enclosed in Annexure VI.

THRUST AREAS :

1. To make Sudha brand a market leader by making Sudha Milk &

Milk Products a consumer delight & ensuring that the esteemed

customers get value for money.

2. Consolidation of the DCSs already organized leading to increase

milk.procurement.

3. Further improvement in the involvement/participation of

members in their co-operatives.

4. Bridging the flush-lean gap further.

5. Popularizing all the input programme.

6. Increasing the throughout & sale of both milk & milk

products as well as cattle feed, by pass protein feed & UMB.

7. Reducing further the handling losses & increases the utilization of

plant capacity

8. Optimizing the utilization of all consumables.

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CHAPTER 2. ACTIVITIES &

PRACTICES OF P.D.P.

2.1 Procurement of raw material

2.2 Marketing strategy

(a) Products

(b) Pricing Policy

(c) Promotional Devices

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Marketing strategy

At the very outset of its marketing campaign P.D.P.restored to a smaller

extent in the advertising of its products. Instead, it stresses on other cheapways viz. hoarding, counter display, towards its wall painting & posters

for drawing the market attention to its product on large. But the changing

market phenomenon, like fierce competition & range of products coerce

the authorities to get customer aware to those products. So it gave a new

shape to the advertising aspects media for its varieties of products. Really,

these endeavors has come up with positive remark from the sale of

customers & sale has gone tremendously up of products like Ice-cream,

Ghee & Lassi.

However, the level of advertising with range of products is

very less.The least response of authorities may have toward outcome in

near future. Because the advertisement retains old customers & make a

new. If the competition would have inception in the same strata of market,

It may lead to short to present level of customer of P.D.P. & above all the

mis conception prevailing about the P.O.P.can only be expunged through

the intense advertisement of products & its qualities.

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A. Pricing policy :

Often price is the major basis of competition in the market. It

is one of the major aspects which the competitors watch very closely. Theprice of the product will have a noticeable effect on its sale , on the firms

total revenues & on its final profits.

A part from the firm, price is important for the buyers & the

society. The demand of the product is greatly affected by its price. Price

may often act as an indicator of quality. According to the law of demand,

a decrease in price would lead to the increase in demand. However, in

certain cases, increase in price may be perceived favourably by the buyerswho might interpret it as a consequence as a increase of quality.

In setting the price P.P.P. follows various ways:

Producers attitude : The organization is setting the price of its

product after seeing the cost of miik supplied by producers.

The organization also considers the consumers attitude in

determining the price of its products.

The organization also considers the competitive price as a

basic approach for positioning its own price.

The organization does not consider the demand of its product

in determining the price, because it does not want to exploit.

the market So, organization tends to limit the profitable price

of its products.In this way, it has adopted marginal policy

keeping in view the interest of societies milk producers &

consumer.

B. Promotional Devices

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These are four major tools of promotional mix.

a. Advertising

b. Personal selling

c. Publicity

d. Sales Promotion

2. Nature & Definition Of Product :

It is perishable in nature.

3. Branding :

It is name, term, sign, symbol or design which is intended to

identify the goods of manufacturer/seller or a group of sellers & to

differentiate from those of competitors.

Milk :- The different types of milk containing different % of fats &

S.N.F. have branded differently to give consumer easy selection of theirproducts. Now the various brands & their % contains of fat & S.N.F. are

as mentioned below.

Types of Milk Name of

Brand

% Fat % S.N.F.

Full Cream milk Sudha Gold 6.0%

9.0%

9.0%

Standardized

Milk

Sudha Shakti 4.5% 8.5%

Toned Milk Sudha Healthy 3.0% 8.5%

Double Toned

Milk

Sudha Smart1.5% 9.0%

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4. Packaging :

Physical properties require packaging decisions to create

such benefits as protection economy, convenience & promotion. Markets

have to develop a packaging concept & test to as certain the achievements

of desired objectives in a comfortable fashion.

Milk :- All the four types of milk are packed in different types of

packets. The filling in packets are done through automatic fill-pack

machine. The tone pack are transparent & attractive & draw the attention

of the consumers. Sudha Gold has red pack,Sudha Shakti has green pack,

Sudha Healthy has blue pack where as Sudha Smart has yellow pack.

5. Quality :

There is quality control selection in P.D.P. which checks &

maintain the quality of its product. They very careful about this quality.

Though there a few no. of complain regarding smell, freshness, quick-

spoilage etc. which are immediately attended.

MARKETING STRATEGY :

A. Product Policy:

It contains following aspects

1. Kind of product manufactured.

2. Nature & definition of product.

3. Branding.

4. Packaging.5. Quality.

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1Kinds of product manufactured:

(a) Toned Milk : It is the milk having 3 to 3.1% (at & 8.5%

S.N.P.

A very popular milk among consumer.

(b) Doubled Toned Milk : It is the milk having 1.5% of fat & 9%

of S.N.F. This type of milk is desirable for persons having

cardiac & other diseases as it has very low fat, but high S.N.F.

content. It serves as fat free nutrient to the parents. In Patna,

actually most people have not a favourable attitude towards

toned & double toned milk,

They think that these milk packets arecream less milk & are not suitable for health. This is the main factor

which affects the marketing of toned & double toned milk.

(c) Full Cream Milk : It is the milk 6% fat & 9% S.N.F. as regard

to FCM it was found during market survey that due to its fat content

people have felling that it is of nutrious falue. But due to its high price

many people do not prefer this pack. It has great demand among students

living in Hostel & Lodges.Families of businessmen prefer this due to its

rich Cream contents.

(d) Standardized Milk : The fat contents of milk is 4.5% with

8.5% S.N.F. This packed milk having highest deemed in the

market. Due to its reasonable price & good quality with

sufficient fat content every class of people prefers this pack.

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CHAPTER 3. CONSUMERS AWARENESS AND SUPPLY CHAIN

MANAGEMENT

3.1 Introduction

3.2 Significance & Objectives of the Study

3.3 Scope of the Study

3.4 About Distribution Channel

3.5 Objective of Distribution Channel

3.6 Evaluating the Major Channel Alternative

3.7 Factors Influencing a Producers Choice Of

Distribution Channel

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INTRODUCTION TO MARKETING

In earlier periods of human history, the problems of human beings

resolved around the question of survival and needs varied from region to

region and changed with the variation in environment and

circumstances. With the passing of time, human needs became more

sophisticated and segmented and therefore to satisfy these needs, more

products and services were needed. In our modern world, human behavior

and needs are no longer static, they are constantly changing. Thus the

demand for products and services are also constantly changing. The

marketing of products and services essentially deals with this situation.

In ancient times, the transactions between two persons or two

organizations were merely exchange of goods that is commonly. Known

as

barter system. However, this barter system could not be used as an

efficient a systeD:l of transaction as the value of goods defer from place to

place and changed time to time. Moreover, with the passage of time, thehuman knowledge about available products and its values also became

easier

Thus, the system of exchange of goods could not be effectively used.

Besides, the barter system had serious limitations not only to volume

exchange process but also to acceptable quality available in the market,

which is acceptable to the customer. Therefore, with the passing of time,

more acceptable system of buying for goods or services in kind or cash or

whatever acceptable currency, became more and more relevant. Thus

process of exchange of money for goods and services to satisfy both

sellers Offer to sale and buyers need to purchase - gave birth marketing

process or activity.

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ROLE OF MARKETING IN BUSINESS

Marketing management derives its strength from customer

satisfaction and hence continuous and sustained marketing efforts are

needed to maintain this satisfaction level. The marketing companies selltheir products and services to satisfy consumers needs and as long as this

equation is satisfied, the relation between the marketing company and

target consumers will be healthy and satisfactory. However, with

changing consumer buying behavior and competition, the products need

to be upgraded or modified to keep pace with the changing situation in the

market and this process should be continuous, otherwise the product will

become either obsolete or undesirable.

Marketing efforts result in new products, new packaging ideas, new

and better products.

Marketing helps to know the situation in the market identify

the competitors, identify the consumers and take suitable and appropriateactions. That is it helps the company to develop and advertise the

brand through various promotional and advertising technique.

Developing and advertising a brand comes under brand management

which forms an integral part of the marketing system Brand management

helps the company to set aside his product from that of his competitors in

order to help the consumer identify his product. We shall discuss about

brand and its concept in the subsequent chapter.

MANAGEMENT

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Management is a universal activity in the modern world. It is an essential

part of any group its influence can be observed in all the type

of organization, decision-making procurement of the resource co-

ordination of activities and direction of the peoples are the important

activities in all organizations have certain elements of management in

common.

MANAGEMENT DEFINITIONS

G.R TERRY

Management is a distinct process consisting of activities of Planning,

Organzing and Controlling perform to determine and accomplish stated

objective with the use of human being and their resources.

HENRY FAYOL

To manage is to forecast and to plan, to organize, to co-ordinate and

control.

CONSUMER BEHAVIOR

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INTRODUCTION TO CONSUMER BEHAVIOR

The main objective of the marketing management is to create

the demand and increase it regularly. For fulfilling this objective,

marketing managers prepare wide marketing programs and these are

called profitable marketing mix. According to marketing point of view

these are input or ingredients of marketing programs to a large extend.

The demand for the product depends upon the attitude perception, motives

and behavior of the consumers. Also marketing managers have to make

adjustment to the situation.

The product may be excellent, the firm may be reputed, sales

policies and promises may be mire attractive that competitors. But if t

incur loss under such situations market can find only one solution that is

arranged their mix according to need to customer . Customers buying

behavior is a process, through which inputs like buying power,

interpersonal influence, and environmental factors. And their use through

process ( perfection of wants, search, purchase decision, product use an

evaluation) and actions lead to satisfaction and wants.

Purchasing behavior may be viewed as an orderly where by

the individual interacts with his environment for the purpose of making

market decision on goods and services of dozen categories if humanbreathing, buying and so forth one of the primary importance to market is

buying.

Buying behavior involves a complicated series of stimulus and

response reaction to many factors of motives. These motives may be

expressed or unexpressed and are based upon deep- seated needs of more

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openly felt wants. When someone buys something, he is psychologically

satisfied both a need and wont provides him with certain mental and

physical satisfaction, A modern buyer wants to know not only for what a

product can do but also for what thus mean.

According to Webster consumer behavior is all psychological

social and physical behavior or potential customer as they become aware

of evaluates purpose consume and tell other at out-products and services

Buyer behavior emphasis that this behavior is both individual

( psychological ) process and group (social) process it follows the buyers

from awareness through to post purchase evaluation It includes

communication purchasing and Consumption behavior it is broad

enough for both consumers (individual and house hod) and industrial

(organizational) buying behavior.

Buyer behavior is comparatively a new filed of study it is the

attempts to understand human actions in the buying role. It has assumed

growing importance under market oriented and customer oriented

marketing planning and management. Market for many product and

the growth consumerism and consumer legislation. Since 1960 have

created interest in buyers, behavior and the formulation of marketing

mixes to respond favorable buyer behavior in the market place.

Consumer buying behavior to wards their needs-

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1. Psychological need- these are the needs that are related to survival

and maintains of human life this needs include for satisfying hunger,

thirst, shelter sleep, air and water these are the basic needs and till they

are satisfied the other needs are of little importance.

2. Safety and security needs after satisfying the psychological needs,

people want the assurance of maintaining a given economic level. They

want job security personal body security, security of income provision

for old-age, insurance against risks

3. Social needs - Man is a social being. He is there fore interested in the

conversion sociability exchange of feeling and grievances. Companion

ship, religion belongings etc..

4. Esteem and status needs -This needs embrace such things as self-

confidence. Independence, Achievement, knowledge and successful

stock they are also known as egoistic needs. They are concern with (he

prestige and status of the individual.

5. Self-fulfillment needs - final step fulfillment it is the desire to achieve

the maximum of once capabilities. Its fulfillment depends upon the

prior fulfillment of the more of the basic needs.

Factors influencing consumer behavior

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Psychological factors-lifestyle informs is how and why consumers

behave as they do. Changes in how in our lifestyle are mainly shaped by

economic factor. As our economic and social patters change marketers

have to find out corresponding changes in lifestyle factors

This include family life cycle increasing women employee (by 1990

women as may be about 30 % of all workers in India). Change in

educational and occupational patterns. Life style patterns involves

preference to purchase in a certain way. It includes taste and attitude

psychological and sociological factors; collectively the study of socio

psychological influences has created a whole new field of marketersbuyer behavior. The next chapter deals exclusively with buyer behavior

in the market.

Social factors- this theory explains buyer behavior in term of social

forces such as social classes, reference groups, culture, lifestyle the

family, it states that the great deal of consumer behavior

is .....................not so much buy real needs for prestige different factorssuch as culture, sub-culture and each of the provides more specific

identification and socialization for its members over and available sets of

products at given prices. The purchasing decision is based on economic

calculation and reason.

Economic model of consumer behavior is urn-dimensional

according this model. We have the following prediction about the buyerbehavior .

1. The lower the price of a product, the bigger the quantity that will be

brought.

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2. The higher the purchasing power, the higher the quantity that will be

bought.

3. The lower the price of a substitute product, the lower the quantity that

will be bought of original product.

4. The higher the incomes the higher the sales of ones products.

5. The higher the promotional expenditure the higher sales, but they

availed it of this hypothesis does not rest on whether all individual

. act as economical calculating machines. Thus, this model explains

economic implications of several factors connected with economic aspect

related to a consumer.

Who Is The Consumer Market ?

The Consumer market consists of all the individuals and

households who buy or acquire goods and service for persona!

consumption consumer vary in ages, income, education, mobility pattern

and taste, markets have found it worth while to distinguish between

grounds and develop products and services tailored to their particular

needs it the market, segments is large enough some companies at setup

special marketing programs served this market.

What Do Consumers Buy :-

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Consumer Interest is in finding some basis of classifying vast

number of consumer product.

1 Durable Goods :- Tangible goods are for example:-

Refrigerator, pressure cooker, clothing . these products are likely to need

more personal selling and services command a higher margin and required

more seller guarantees.

2. On-durable Goods :- Tangible goods which normally are consumed in

or a few uses for example:- meat, soap. Since these goods are consumed

fast* and purchased frequently they are likely to be made available in

many locations and small margin and develop strong brand loyalty.

3.Services:- Activities benefits per satisfaction, which are offered for s

example:- hair cut, repairs consumers services have characteristics of

being intangible, perishable, variable variable and personal as a result they

are likely to require more quality control supplier creditability and

continuous availability.

4. Convenient goods :- Customer usually purchases - this consumer

goods frequently immediately and with minimum effort in comparison

example

Tobacco products, news papers and blade.

5. Shopping goods :- These are consumer goods with the consumers in

the process of selection purchase characteristically compares on such

basis suitability, quality process and stiles for example:- furniture, dress,

good used in automobiles and major appliances.

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6 Specialty goods:- These consumer goods with unique characteristics

and brand identification for which a significant group of buyer and

habitually willing to make a special purchasing effort.

When Do Consumers Buy :-

The occasion for consumer buying can be analyzed

purchased along serve dimensions whether consumers purchased a

product for example:- households with young children consume milk at a

much faster rate than childless household. Marketing strategy for such

items often based on segmented the market in to buyer with different

consumption Heavy, medium light users.

Mostly consumers buy goods at off-seasons only to avail

discounting facility, purchases timing is also varying during the day or

week. Economic conditions also affect consume purchase timing

particularly for durable goods or shopping and specially goods when

economic out look is poor consumer post-pone major purchase.

The basic motive of consumer buying: -

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There is a few basic motives that causes people to buy: -

1. comfort of conveniences : for which reason they purchase labor saving

devises and in numbering conveniences at home, at work and insertion

such as gas cylinders, stove and pressure cookers, electronic iron soft bed,

good nursing and tasty food, types of food, types of convenience like fans,

air conditions, washing machines and luxurious articles.

2. Safety and protection :- people generally fear loss of life, health,friends, job reputations and comfort as that cherish for becomes

greater on this counts are purchased house, investments, insurance policy,

drug tonic and health giving drinks and many other such items.

3. Safety of provide and variety :-people like to feel important in the

society among friends club to get administration acquire state symbol

which leads to verity. For all this ladies purchase costly customers,

jewelrys, joining expensive club to theaters and purchase product of arts

have important and expensive home decoration objects, purchase,

television, refrigerators, costly furniture and variety of costly furniture and

variety of costly goods.

4. Love and affection: - it consists of a sense of duty love of family

society and desire to see just done to oneself and others.

Readymade, baby suits, childrens toys and even life insurance policy

to their children. Labor saving devices, beautiful present,

costly jewels, fashion perfumes, romantic and sexy novels for

their wife are generally purchased to satisfy the buyer affection motive.

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5. Gain and economic motive :- Some people like to make purchase to,

make purchased enable them to personal benefits or gain

monitoring acquire better things at lower costs. A

businessman wants to purchase things which they can go aroundshops buy her needs of grocery and desire to save money and utilize

this future.

6. Adventure and excitements :- People are curious to this. They like

new things, new places to visit in order to satisfy their desire. They

purchase latest clothing, new books and many such things.

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INTRODUCTION

The study of Supply chain occupies a significant place in the study of

marketing effectiveness of any firm, because sale is life blood of thebusiness. 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 of thebusiness under taking personality. Hence, this arises the

need of sales organization to perform the various functions. These

functions include market research, product planning, sales for casting,

determination of selling policy, selection of channel of distribution,

selection, training, supervision and remuneration of the sales man etc.

Indeed, Supply chain any sequence of institutions from the

producers to the consumers including one or a number of middle man.

As maximization of wealth is the main objective of every business

and this aim could be achieved if the profitability of the firm is increasingand if it is decreasing, then it would be hard enough to operate the

business for long. So channel of distribution should be taken very

consciously/

It can therefore be said that the firm should adopt and maintain an

effective channel of distribution.

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After production, the next problem faced by a producer is that of selling

and distributing because production is made to satisfy the need of the

consumer, so it must reach to the consumer for whom it is made.

There are different channel of distribution i.e. goods may be passed

on to the consumer through distributor and retailers or only through sub-

distributor or directly by the producers to the consumers. The producers

may choose any one of channels considering various factors, which force

the producers to decide about one channel or the others. Where a choice

is available with the producers to pass the goods on the consumers then he

must choose channel which may cost least so that unnecessary burden of

distribution is not put on the consumer resources.

There are two critical aspects of channel, the first is, channel choose

for the companies products intimately affect every other marketing

decisions i.e. pricing decisions, advertising decisions, sales force

decisions involved the firm in relatively long-term commitments to other

firms..

It is my passion to know the running distribution channel can be

applicable for long run any change required. If it is require then at which

level at where that can good for such.

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SIGNIFICANCE AND OBJECTIVE OF THE STUDY

In the era of cut throat competition and globalization/ of business every

company face, a series of hurdles in selling the product in the market.

Therefore it becomes necessary to keep eyes every aspect of management.

Needless to say that distribution channel becomes the most

important aspect. It helps not only the management to increase its sales

and its micro interior operation but also helps to know retailers needs and

wants.

OBJECTIVES :

The main objectives can be classified as follows :-

1. To analyses the trends of distribution channel.

2. To provide information about the factors which can assist the

company in increasing sales.

3. To examine the various pit falls that been occurred during the

distribution of companys product.

4. To examine the problems thoroughly.

5. To suggest a course of action to kick these problems away from bettermarket share through an effective channel of distribution.

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SCOPE OF THE STUDY

The study entitled Consumer Awareness & Supply chain of Sudha in

Patna However, I survey only 140 people in Patna region.

The survey of the customer reflects light on the effectiveness and

efficiency of running system.

The findings are based on the response given by the Customers

exploratory cum descriptive research was used in the research design. The

observational research could have been a very input to the research but

due to various compulsions it could not happen at a desired level.

Therefore, we like to say that findings should not be considered

universally applicable.

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Supply Chain Management (SCM)

SCM is larger in scope than both physical distribution andmarketing logistics. It encompasses materials management task as well.

Supply chain actually refers to the whole business chain, encompassing

procurement of inputs, in-bound logistics, conversion of inputs into

products, physical distribution/marketing logistics and channel functions,

which finally take the end product to the ultimate consumers Essentially,

SCM can be viewed as the combination of materials management and end

product distribution, which constitute the two vital component? of the

business process and form the key tasks at the front and back ends of the

process, respectively.

It can be seen that the supply chain is in effect the firms value

chain. Value is actually spread through the firms supply chain. A Firm

can optimise its total customer value by managing activities in the supply

chain in an integrated manner, treating them as one continuous chain. The

supply chain constitutes a value delivery network. That is why it is often

said that firms compete in the marketplace using their supply chains as the

weapon, not their products and brands. Superiority in supply chain is thus

a major competitive advantage. A firm with the better supply chain wins

in the market. We have discussed the value chain concept in detail in the

two chapters on Industry Analysis, and Competitive Advantage.

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The SCM approach, no doubt, has some merits. It facilitates the

integrated handling of the functions of the business, especially the

procurement function and the logistics functions at the front and the back

ends of the business. As a result, it comes handy in value creation/ value

addition.

In this text, we shall in any case avoid the SCM approach. After all,

in a marketing text, there is no scope for discussing materials

management. We shall confine ourselves to distribution of end products.

We shall, however, make a slight deviation from the traditional way of

handling the subject. Instead of treating it merely as a physical

distribution task, we shall treat it as marketing logistics.

IMPORTANCE OF PHYSICAL DISTRIBUTION MARKETING

LOGISTICS

Physical distribution/marketing logistics forms a pivotal part of the

marketing task.

Confers Place and Time Utility on Products

It is physical distribution that confers place-utility and time-utility

to a product by making it available to the user at the right place and at the

right time. Thereby, it maximises the chance to sell the product and

strengthen the companys competitive position. If any product made in

any place could be consumed in its entirety at the very place of production

and at the very time of production, there would be no need for physical

distribution of that product. But such products are very rare. In practice,

almost every product gets consumed at places and times that are different

from those of their manufacture. They have to be carried to places of

consumption; they have to be stored; and they have to be distributed.

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Where Production Locations and Markets are Distanced,

Physical Distribution Becomes more Crucial

In some cases, production locations are totally dictated by

considerations, like proximity to sources of raw material. As a result, the

points of production might be far away from the markets for the product.

In some cases, huge production capacities get established at a given

location on considerations of technology and economies of scale. In all

such cases, the product has to be marketed over an extended territory; it

has to be transported over long distances, stored for a considerable length

of time and sold. Then, there are products, which are impacted by the

seasonality factoreither production is continuous but demand is

seasonal, or demand is continuous but production is seasonal. Here too,

physical distribution becomes particularly crucial. It has to perform the

balancing act between production and consumption.

COMPONENT FUNCTIONS OF PHYSICAL DISTRIBUTION/

MARKETING LOGISTICS

The component functions of physical distribution/marketing

logistics are shown in Chart 27.2. .The three major functions are:

Transportation

Warehousing

Inventory Management

We shall discuss each of them in detail. But before that, let us

understand how a physical distribution system has to be designed.

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DESIGNING A PHYSICAL DISTRIBUTION SYSTEM

The steps involved in designing a physical distribution system are

shown in Chart 27.3.

Articulating Distribution Objectives and Specifying Minimum

Service Level Desired in Product Delivery

As first step, the distribution objectives of the firm must be properly

articulated and the minimum service level to be guaranteed in delivery

must be clearly specified. In fact, the guaranteed minimum service level in

delivery is the key to a physical distribution system. It is also the

touchstone for measuring the efficiency of the system.

Component Functions of Physical Distribution/Marketing Logistics

Planning the overall physical distribution system

Secondary transportation, secondary handling and sub-

In plant-warehousing distribution

Transportation

Inventory management at each level In the chain

Field warehousing

Order processing/ execution Receiving

Accounting/record keeping

Handling

Communication

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Steps Involved in Designing a Physical Distribution System

Articulating distribution objectives and specifying the minimum service

level desired in product delivery.

Finding out what the customers want in product delivery. Finding out what competitors do.

Keeping the costs of the system as low as possible, without sacrificing

the guaranteed minimum service level.

Keeping the system sufficiently flexible.

TRANSPORTATION

The importance of transportation in physical distribution emanates

from a variety of factors. At the beginning of this chapter, we explained in

detail the factors that contribute to the importance of the physical

distribution job as a whole. This applies to transportation. Transportation

confers time utility and place utility to the product; it determines the

companys

Main Tasks in Transportation Management

Assessment of the transportation requirement

Choosing the mix of transport modes

Deciding the routing

Development of operational plans Implementation/review

Control of transportation costs

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customer service; it also has a crucial bearing on the other elements of

physical distribution and marketing, like warehousing, inventory control

and channel management. Finally, transportation is also a very important

cost element in most businesses.

Basically, transportation management involves decisions on :

How much to move?

When to move?

Where to move?

By what mode, or combination of modes to move? :

;

The considerations in making these decisions are:

(a) the lead time for stock replenishment

(b) sales expected in the territory in the intervening time

(c) the normal cycles of inventory build up at the warehouse/dealer points.

If a firm can estimate these factors fairly accurately, it can make the

basic decisions on transportation. In a fundamental sense, transportation

has to be based on the sales forecast. Decisions on when to move, how

much to move and where to move will essentially depend on the sales

forecast.

WAREHOUSING

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Warehousing is the second major component of physical

distribution. Warehousing management has two distinct and equally

important parts: (i) the physical job of creating and running the network of

storage points, and (ii) the managerial task of controlling inventory levelswithout sacrificing service levels. Though interrelated, they require

separate and detailed discussion. We shall, therefore, devote two

independent sections to the subject. In the first, we shall deal with the

warehousing aspects and in the second, with the inventory management

aspects.

Role and Importance of Warehousing

Role and Importance of Warehousing

Like transportation, warehousing too vests the product

Storage reduces the need for instant transportation,

with time utility and place utility.which is often difficult and costly.

In the case of some commodities, warehousing vests

Storage is also a competitive advantage, as with better

the product with form utility as well, storage, better servicing of the

channel and consumer

It is common knowledge that a certain level of storage is

possible.inescapable in marketing of most products.

Storage also helps in balancing demand and supply,

For products with high seasonably, storage is needed and in stabilising

prices.on a larger scale.

In some cases, sub-distribution realities necessitate

In the case of some products, storage by itself acts as

extra storage a stimulant of demand.

Designing a Warehousing System

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In most cases, products flow from the factory to the consumer

through a long winding chain, consisting of multiple tiers of warehouses

and multiple tiers of marketing intermediaries. In designing a

warehousing system, the following basic questions relating to this flow

become significant.

How many warehouses should we have?

Where should we locate them?

What should be the size or capacity of each of them?

Determining the Number, Location and Size of Warehouses

Determining the locations and capacities of the warehouses is the

crux of the task. On this depends the firms customer service level, its

competitive advantage in distribution and its inventory cost structure.

While one might point out that it is the inventory turnaround that

primarily determines inventory costs, the fact remains that the costs are

also influenced by the locations and spread of the inventories at how

many places and in what size are stocks kept. Moreover, inventory

turnaround itself is partly the outcome of the manner in which the

inventory is spread.

Determining the number : The optimum number will depend upon the

nature of the product, the size and geographical spread of the market

serviced by each warehouse, the current and potential sales in the

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territory, the extent of seasonality of demand if applicable, the level of

peak demand, the trade patterns, the number of distributors/retail outlets

to be serviced by each warehouse, the acceptable order-execution time,

the possible speed of replenishment of stocks and the cost involved in

operating warehouses. Future requirements and pattern of competition are

also relevant factors in deciding the number and sizes of the warehouses.

Choosing the size : The decision on the size of the warehouses must be

taken in alignment with the decision on their total number. After a firm

assesses the sales potential in each warehouse territory, the question to be

decided is: What is the optimum inventory holding needed for realising

the sales projected for the territory?

Warehouse size and costs arc inversely interrelated. So, as a

general rule, small-sized warehouses are uneconomic compared to larger

ones. At the same time, if the sales projected are small, warehouse size

has to be small. Customer convenience and channel service will call for a

large number of small-sized warehouses spread extensively all over themarketing territory. There will also be the additional consideration of

future requirement. As a general rule, it can be said that by reckoning the

volume of sales and the desired market share in the area

covered by the warehouse, and by applying the factors of transit time and

peak season demand, the optimum warehouse capacity at a given location

can be worked out.

Choosing the exact locations : Choosing the exact locations of the

warehouses is as important as choosing their number and capacity. The

locations must be suitable in terms of market factors and availability of

transport facility. Rent rates, commercial suitability of the location,

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implications of local levies, etc., have also to be looked into. Above all,

availability of suitable godown space has to be considered.

Elements of Inventory Costs

Interest on capital tied up in the inventory

Postage and communication charges

Warehouse rent

Administrative overheads

Staff salaries

Costs of handling, unloading and stacking Insurance

Loss due to damage and deterioration while on storage

Rates and taxes

Cost of order processing/record keeping/accounting

Stationery

In many cases, warehousing as a whole becomes inefficient on

account of unreliable sales forecasts. When actual sales show greatdivergence from the forecast, any warehousing plan naturally goes

haywire and its effectiveness suffers a setback,

INVENTORY MANAGEMENT

Inventory management is the third major component of physical

distribution task. It will be obvious that without effective management of

finished product inventory, it is impossible to run any business efficiently

and profitably.

Inventory is Inescapable

Carrying inventories is inescapable in most businesses. This is

because the producing and consuming activities take place at different

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times, in different locations and at different rates. Inventories are made up

of several elements: operational stocks kept at the point of sale/ retail

outlets for meeting ready demand is the first element; stocks in transit at

any given point of time the second; then there will be stocks awaiting

shipment; and finally, there will be buffer stocks for meeting emerging

sales requirement.

Elements of Inventory Costs

Interest on capital tied up in the inventory is a significant

element of the total inventory carrying costs. This is particularly true in

businesses in which the turnaround of inventories is rather slow.

In recent years, increased competition has resulted in accumulation

of stocks in a number of businesses. And the slowdown in the economy

wherever it has occurred, has added to the burden in this regard.

Warehouse rents have also been going up. Naturally, inventory-carrying

costs have been going up. Besides warehousing rents and inventory costs,

handling costs, which include costs of clearance, loading, unloading and

stacking, too have been going up.

Issues in Managing Inventory and Inventory Cost

The following are the main issues involved in the management of

finished product inventory.

Identifying the purposes served by the inventory.

Establishing correct relationship between inventory purpose and

inventory level, and deciding the optimum inventory level.

Ensuring that the inventory is maintained at the optimum level.

The crux is: How to decide the-optimum inventory? In simple

terms, optimum inventory is the level that is sufficient to realise the

projected sales, but not too high to erode projected profits. The controller

of physical distribution has to determine at what inventory level, he can

by and large avoid lost sale due to stock out. Lost sales is a key

concept in inventory management.

Inventory Control, a Balancing Act

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It is quite easy for a physical distribution controller to completely

avoid stock-out situations and consequent lost sales, if only he is

allowed to maintain a very high level of inventory.But, no firm will allow

excessive inventory levels; it is not sound business; it involves a heavy

cost. Sound business will call for optimisation of inventory

level/inventory costs, ensuring at the same time that the forecasted sales

are realised. Obviously, one must assess the probability of run-out,

quantify the resultant loss of sales/profit and offset it against the cost of

holding additional stocks and realising the sale. Inventory management,

thus, is essentially a balancing act.

Optimum Inventory, a Compromise Between Cost and Service

Inventory is primarily a function of customer service level fixed by

the firm. Here, customer service level primarily means the ability to meet

demand at the retail level as and when it arises from available stocks,

without having to generate a back-order. ,It is in view of this close

interrelation between inventory level and customer service level that

inventory control essentially becomes a compromise between cost andservice.

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ABOUT SUPPLY CHAIN MANAGEMENT

In the era of societal marketing all leading companies arc emphasizing on

maximum consumer satisfaction with minimum cost. Companies are not

only interested to sale their products but they are also willing to know

changing taste are preference of the consumer. They arc investing more

and money to know even uncontrollable variable like human Psychology.

Distribution system of a company helps to procure its largest sales

as well as it helps to know the attitude and taste of consumers in changing

environment downward communication. Which is helpful for a companyto reach its objectives.

Every Company has its own way to its product in marker. Few

leading companies believe in their own outlet operation and they have on

intermediaries. But several companies like Sudha operates with

intermediaries. They usually take advantage of brand image as well as

developed networking system of their intermediaries.

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OBJECTIVE OF SUPPLY CHAIN MANAGEMENT

In any developing economy there is an increasing emphasis on

specialization and the division of labor. Thus, there is a gap between

producer and user.

The purpose of a Supply chain is to bridge this by resolving spatial and

temporal discrepancies in supply and demand.

It involves following activities :-

(1) Transfer of title to the goods involved.

(2) Physical movement from the point of production to the point of

consumption.

(3) Storage.

(4) Communication of the information concerning the availability

characteristics and price of the goods in transit, inventory and on

purchase.

The importance of these function depends upon the nature of goods

themselves, Activities of Supply chain involve price fixation, reutilization

of decision, managing finances promotional activities, arising

communication, minimizing total.

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EVALUATING THE MAJOR CHANNEL ALTERNATIVE

There are various channel alternatives available to a producer. Now the

main problem before the producer into decide which of the alternatives

would best satisfy long term objectives of the firm taking in view the

factors which would affect the channel decisions. For this purpose, each

alternative must be rated against economic, control, and adoptive criteria.

1. ECPMP, OC-CRITERIA

For evaluating the effectiveness of channel of distribution, the economic

criteria are the most importance since the firm pursues the profits.

(i) What would be the sale volume under each of the channel

alternatives.

(ii) The second consideration is to estimate the selling and distribution

costs of each alternative.

(iii) Then the sale and the costs of different alternative should becompared having a comparative view of cost effect on the net profit of the

firm Companies own sale force should also be taken in view and should

decided whether have own its sales force of use the sales agency.

2. CONTROL CRITERIA

In evaluation the channels the second main consideration is that of the

control i.e., how would the marketer be in a position to have a control

over a particular channel. The more would by the control the better wouldbe the channel of distribution. For this purpose, he is to consider the

channel relationship between various channels of distribution., their

internets and attitude about companys product and conflict among them

legal aspects in appointing a particular channel should also be considered.

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3. The next consideration in channel decisions is to see whether the

channel would be suitable to adopt the changing condition in future.

Each channel alternative involving a long commitment must in

grounds in order to be considered but it is not valid on the ground of

adaptability.

FACTORS INFLUENCING A PRODUCERS CHOICE

OF A DISTRIBUTION CHANNEL

The best channel decisions in on that works best in the marketing strategy

selected by the company. The channel chosen should achieve idea; market

exposure and should meet target customers needs and preferences.

The channel choices is influenced by several factors:-

(A) PRODUCT CHARACTERISTICS

The product characteristics play on important rate influencing the

channel selection.

(i) Purchase Frequency-

The more frequently purchases are made; the more feasible it is

for a manufacturer too use direct distribution. This requires

extensive distribution which involves a financial consideration.

(ii) Perish ability-

Perishable and fashionable products such as dairy bakery

products, fruits and vegetables or sea foods must be placed in the hands of

the final users as soon possible after its production. These usually

require more direct marketing because of the dangers associated with

repeated handling and delays.

(iii) Weight and Technicality of the Product-

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Products that are bulky, large in size and technically Complicated

are usually sold directly by the company to the consumer because of

the difficult to find middlemen for the lines.

(B) MARKET FACTORS OR CONSUMER FACTORS

(i) Consumer or Industrial Market-

The producer of consumer product may

choose a long.channel involving wholesalers and retailers depending upon

the nature of product.

(ii) Number of Purchaser-If the no. of consumer is large, the

channel may be indirect and services of wholesalers and retailers become

necessary.If customers are few, direct sale can be entertained through

representatives.

(iii) Size of Orders-

If customers purchase small quantities

frequently and regularly, lengthier marketing channels are indicated. If theorder from the consumer is large, the channel may be shorter.

(C) COMPANY OR ENTERPRISE FACTORS

(iv) Financial Resources-

The financial strength of the company

determines which marketing tasks it can handle efficiently and which ones

are to be delegated to the middlemen.

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(v) Size of the Company-

A large company already handling a wide line

of products is in a good position to take an additional product of the same

line and handle it the same way, usually directly. A smaller firm or one

with narrower lines, would find middlemen more practical.

(vi) Product Mix-

A fresh expansion of plant capacity may require

more aggressive channel. If the product mix of a company is wider, it can

deal with its customers directly.

(D) MIDDLEMEN CONSIDERATIONS

(i) Services Provided-

If middlemen can provide the services to the

customer which the company requires to provide, the middlemen can be

appointed otherwise company will sell the product direct to the consumer.

(ii) Attitude-

If some middlemen desire to fix their

own price for the product and if the company agrees to allow them to do

so, they can very happily agree to sell the products of the company. On

the other hand, if the company likes to follow the Resale Price

Maintenance policy, the choice is limited.

(iii) Availability-

If the company is late entrant in the field and

his competitors have already tied up, the middlemen is a necessary part of

a selective or exclusive distribution policy.

(iv) Cost of Channel Usage-

Those channels should be chosen which ensure

efficient distribution at least expenses and which secure the desired

volume of sale. However, from the consumers point of view, the

justification for the intermediaries is that they make is easy for him to

buy.

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(E) ENVIRONMENTAL FACTORS

(i) Economic Condition-

When economic conditions are

depressed the producers choose shorter channels to cut costs. If there is

multi point tax on sales, the line should be shorter to avoid the tax burden

of consumers and they prefer to sell directly to the retailers or consumers.

(ii) Legal Restrictions-

If there is any legal restriction on

any selling activity, the producer will be restricted to do so. For example

under MRTP, Act, any practice which may have the effect of

unreasonably preventing or lessening competition in the supply of goodsor services is not permissible. So, also is resale price maintenance. In case

controlled items the channels should be strictly according to the

government policy.

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CHAPTER 4. MARKETING RESEARCH &

METHODOLOGY

4.1 MARKETING RESEARCH

4.2 DATA SOURCE

4.3 RESEARCH APPROACH

4.4 RESEARCH INSTRUMENT

4.5 COLLECTION & ANALYSIS OF INFORMATION

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RESEARCH METHODOLOGY

SOURCE OF DATA : - Having decided about the objectives and scope

of the enquiry, the next problem is to decide about the sources from which

the information (data) can be obtained or collected.

1 used both primary & secondary source to collect information.

Primary data : - The data that are originally collected by an investigator

or agency for the first time for any statistical investigation and used by

them in the statistical analysis are termed as primary data.

Secondary data : - The data (published or unpublished) which have

already been collected and processed by some agency or person and taken

over from there and used by any other agency for their statistical work are

termed as secondary data.

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Methods of collecting primary data

I used both Questionnaire and schedules technique to collect primary data.

Questionnaire : - It is set of questions which are answered by the

respondent himself in his own handwriting.

Schedule: - It is the device of obtaining answered to the questions in a

from which is filled by the interviewers or enumerators in a face-to-face

situation with the respondents.

Secondary data was collected from broachers & company internal records.

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MARKETING RESEARCH

The American marketing association defines marketing as the process of

Planning and executing the conception/pricing promotion and distributionOf ideas, goods and services to create exchanges that satisfies individuals

& organizational objectives.

It is formalized means of obtain information to be used in making

marketing decisions. Marketing Research is the systematic & objective

identification, collection, analysis, dissemination & use of information for

the purpose of assisting Management in decision making related to the

identification & Solution of problems (& opportunities) in marketing.

TYPES OF MARKETING RESEARCH

Exploratory Research

Descriptive Research

Experimental Research

Exploratory Research : - Exploratory Research is concerned with

discovering the General nature of the problem & variables that relate to it.

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The purposes of Exploratory Research are:-

To understand the problem being faced by the mgt.

To identify the underlying variables which might have

produced the problem?

To develop hypothesis and hence tentative solutions.

To gain insight and new ideas.

The methods of exploratory research:-

Analysis of secondary data.

Survey of experts in the industry.

Case studies.

The structure of exploratory Research is:-

It is relatively unstructured,

It has to be flexible to a great extent.

Sample is relatively small.

Generally no questionnaire.

Descriptive Research : - It is focused on the accurate description of

variables in the Problem model.

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The purposes of descriptive research are:-

To descriptive marketing variables.

To estimate the percentage of units in a given population

showing a particular behavior.

To make predictions.

To study perception of object.

The methods of descriptive research are:-

Cross sectional study.

Cohort analysis.

Longitudinal study.

Experimental research:-

An experimental involves manipulation of one or more variables and

measuring the effect of manipulation on some other variables.Variables which are manipulated are independent variables and the

variables on which effects of manipulation are measured are dependent

variables.

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RESEARCH

INFORMATION CONSUMERS

ANALYSIS

REPORT

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QUALITY OF THE PRODUCT

Responses1 2 3 4 5

Quality (%) 1.4 2.14 3.57 14.2 78.57

Quality Marks Obtained Index Total Response

13130 9378 140

QUALITY OF THE PRODUCT

1% 2% 4%14%

79% 12

3

4

5

PoorSatisfectory

Good

Very Good

Excellent

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QUALITY CONSISTENCY

Responses1 2 3 4 5

Quality Consistency (%) 2.14 1.42 7.14 17.85 71.42

QUALITY CONSISTENCY

2%1% 7%

18%

72%

1

2

3

4

5

Satisfectory

Good

Very Good

Excelent

Poor

Consistency Marks Obtained Index Total Response

1280 91.57 140

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SHELF LIFE & RELIABILITY

Responses1 2 3 4 5

Self Life (%) 1.42 5.71 3.57 7.14 82.14

Shelf Life & Reliability

1% 6% 4%7%

82%

1

2

3

45

Poor

Satisfector

Goo

Very

Excellent

Self Life Marks Obtained Index Total Response

13080 93.42 140

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FLEXIBILITY & RESPONSIVENESS OF

THE ORGANISATION

Responses1 2 3 4 5

Flexibility (%) 5.71 8.57 14.28 7.14 64.28

FLEXIBILITY & RESPONSIVENESS OF THE

ORGANISATION

6% 9%

14%

7%64%

Poor

Satisfectory

Good

Very Good

Excellent

Flexibility Marks Obtained Index Total Response

11920 85.14 140

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TRAINING & AWARENESS

ACTIVITIES

Responses1 2 3 4 5

Training & Awareness (%) 1.42 2.14 57.14 17.85 21.42

TRAINING & AWARENESS ACTIVITIES

1%2%

58%18%

21%

PoorSatisfectory

Good

Very Good

Excellent

Training &

Awareness

Marks Obtained Index Total Response

10030 71.64 140

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COMMUNICATION FACILITIES & METHODOLOGY

Responses1 2 3 4 5

Communication Facilities (%) 0.71 1.42 10.71 21.42 65.71

COMMUNICATION FACILITIES & METHODOLOGY

1%

1%

11%

21%

66%

Poor

Satisfectory

Good

Very Good

Excellent

Communication

Facilities


12640 90.28 140

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PROMOTIONAL ACTIVITIES OF THE

ORGANIZATION

Responses1 2 3 4 5

Promotional Activities (%) 0.71 0.71 7.14 28.57 62.85

PROMOTIONAL ACTIVITIES OF THE ORGANIZATION

1%

1%

7%

29%

62%

Poor

Satisfectory

Good

Very Good

Excellent

PromotionActivities

Marks Obtained Index Total Response12690 90.64 140

SALES SUPPORT FACILITIES PROVIDED BY THE

ORGANIZATION

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Responses1 2 3 4 5

Sales Support (%) 2.14 1.42 3.57 14.28 78.57

SALES SUPPORT FACILITIES PROVIDED BY THE

ORGANIZATION2%

1%

4%14%

79%

Poor

Satisfectory

Good

Very Good

Excellent

Sales Support Marks Obtained Index Total Response

13140 93.71 140

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TECHNICAL SUPPORT FACILITIES PROVIDED BY

THE ORGANIZATION

Responses1 2 3 4 5

Technical Support (%) 1.42 2.85 2.85 7.14 85.71

TECHNICAL SUPPORT FACILITIES PROVIDED BY

THE ORGANIZATION

1% 3% 3% 7%

86%

Poor

Satisfectory

Good

Very Good

Excellent

Technical

Support


13320 95.14 140

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VALUE FOR MONEY WHEN CONSUMER BUY &

CONSUME THE PRODUCTS

Responses1 2 3 4 5

Value For Money (%) 2.14 2.14 2.85 28.57 64.28

VALUE FOR MONEY WHEN CONSUMER BUY &

CONSUME THE PRODUCTS

2%2% 3%

29%

64%

Poor

Satisfectory

Good

Very Good

Excellent

Value For

Money


12710 90.78 140

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ENVIRONMENTAL CONCERN OF THE

ORGANAIZATION

Responses1 2 3 4 5

Environmental Concern (%) 0.71 2.14 4.28 67.85 25

ENVIRONMENTAL CONCERN OF THE

ORGANAIZATION1%

2%

4%

68%

25%

PoorSatisfectory

Good

Very Good

Excellent

Environmental

Concern


11590 82.78 140

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SOCIAL CONCERN OF THE

ORGANIZATION

Responses1 2 3 4 5

Social Concern (%) 1.42 2.14 3.57 35.71 57.14

SOCIAL CONCERN OF THE ORGANIZATION

1%2% 4%

36%57%

Poor

Satisfectory

Good

Very Good

Excellent

Social Concern Marks Obtained Index Total Response

12530 89.5 140

INDEX TABLE

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PARAMETER INDEX

Quality 93.78

Quality Consistency 91.57

Shelf Life & Reliability 93.42

Flexibility & Responsiveness 85.14

Training & Awareness 71.64Communication Facilities 90.28

Promotional Activities 90.64

Sales Support Facilities 93.71

Technical Support Facilities 95.14

Value For Money 90.78

Environmental Concern 82.78

Social Concern 89.5

INDEX TABLE

93.78

91.57

93.42

85.14

71.64

90.28

90.64

93.71

95.14

90.78

82.78

89.5

0 20 40 60 80 100QU

ALITY

QUALITYCONS

ISTENC

Y

SELF

LIFE&REL

IABILITY

FLEXIBILITY&RE

SPON

SIVENE

SS

TRAINING

&AWAREN

ESS

COMMUN

ICATIONFA

CILITIE

PROM

OTIONA

LACTIVITIES

SALE

SSUPP

ORTFA

CILITIE

S

TECHNICALSUPP

ORTFA

CILITIE

VALU

EFO

RMONEY

ENVIR

ONMEN

TALCONC

ERN

SOCIAL

CON

CERN

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100%

30%

60%

20%

15%

MILK

PEDA

LASSI

DAHI

OTHERS

81

Analysis & Interpretation of the study

[Retailers]

Product lines dealt by retailers-

PRODUCT PERCENTAGE

MILK 100%

PEDA 30%

LASSI 60%

DAHI 20%

OTHERS 15%

[Sample Size = 140]

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60%20%

2%

3%

10% 5%MILK

LASSI

ICE CREAM

PANEER

DAHI

OTHERS

90%

10%

YES

NO

82

Average sell of different milk/milk products-

[Sample Size = 140]

Does the organization fail to fulfill the demand of product-

YES 90%

NO 10%

[Sample Size = 140]

PRODUCTS PERCENTAGEMILK 60%

LASSI 20%

ICE CREAM 2%

PANEER 3%

DAHI 10%

OTHERS 5%

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75%

10%

15%

YES

NO

NOT AWAR

70%

30%

YES

NO

83

Do you recommend setting up a call centre/customer help line for improving the

customer services

[Sample Size = 140]

Retailers influence on purchasing behavior of consumer -

YES 70%

NO 30%

[Sample Size = 140]

YES 75%

NO 10%NOT AWARE 15%

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70%

30%

YESNO

75%

20%

5%

1 DAY

2 DAY

3 DAY

84

Do you recommend to try new products of SUDHA to consumers-

[Sample Size = 140]

Average time taken to deliver the product-

TLME PERCENTAGE

1 DAY 75%

2 DAY 20%

3 DAY 5%

[Sample Size = 140]

YES 70%

NO 30%

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15%

85%

SATISFIED

DISSATISFIED

70%

18%

12%

1 DAY

2 DAY

3 TO 4 DAY

85

Satisfaction level regarding compensation policy against damaged product-

SATISFIED 15%

DISSATISFIED 85%

[Sample Size = 140]

Organization

inventory storage

time for product before

selling to the

consumer-

1 DAY 70%

2 DAY 18%

3 DAY 12%

]

[Sample Size = 140

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25%

60%

15%

VERY GOOD

GOOD

FAIR

65%

35%

0%

10%

20%

30%

40%

50%

60%

70%

YES NO

Series1

86

Satisfaction level regarding the transportation medium used by organization to

deliver the product-

[Sample Size = 140]

Quality standard is maintained by the company regularly

[Sample Size = 140]

VERY GOOD 25%GOOD 60%

FAIR 15%

YES 65%

NO 35%

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CHAPTER 5. ASSUMPTION OF MARKET

5.1 ANALYSIS & STATEMENT OF CONSUMER RESPONSES

5.2 CONSUMER REACTION

5.3 REPRESENTATIVE OF SUDHA DAIRY

5.4 ANALYSIS OF BRAND MILK

5.5 ANALYSIS STRENGTH WEAKNESSES

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ANALYSIS & ASSUMPTION OF THE MARKET

SURVEY

Information pertaining to milk marketing and sales of dairy products were

collected the study covered two categories of respondents.

a) Customer

b) Representatives of Sudha dairy

For the first to categories of respondents two types of questionnaires were

used as research instruments. The questionnaires included both open and

closed ended questions and addressed issues related to-

a) Availability of products

b) Consumer preferences vis-a-vis attributes of products

c) Label of brand loyalty

d) Strength, weakness, opportunities and threats of products consumers

consume and retailers endorse.

The representative of Sudha Dairy were administered with in-depthdiscussion guidelines.

The study covers 100 customers. The sample allocated for retailers were

proportionally distributed allocated for retailers were proportionally

distributed amongst the retailers for Sudha and Raj with the premise that

Raj is the major competitor for Sudha in the packaged milk market.

The customer questionnaires were administered to selected respondentsrepresenting different stratum of in various areas of Patna among different

class of people.

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The customer base of the city were divided into seven categories based on

usages pattern vis-a-vis socio-economic classification of house holds, The

categories defined for the study were

1. Officers /Professionals (10000-25000)

2. Clerical Grade employees (8000-15000)

3. Businessmen (30000-50000)

4. Housewives

5. Students / undergraduates

Each of the customer category identified above exhibit different

characteristics. The following text summarizes the profile of the customercategory identified.

Officers / Professionals : They represent educated class,

aware about the properties of pasteurized milk vis-a-vis other milk. The

study indicates that respondent belonging to this category are aware and

conscious about processing and treatment of milk i.e. supplied to them.

These respondents were also aware about the variants(tone, double toned

etc) of milk available in the market. Most of them were aware of tonedand double toned milk packaged. They also form one of the major

customer group consuming packaged milk.

Clerical Grade Employees : They represent educated

class can are very sensitive to price implications. They also form one of

the major customer group consuming packaged milk.

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Businessmen are the basic purchaser of milk and other

dairy product because usually they reside in combined family. They

purchase a huge quantity of milk but along with pasteurized milk. They

also purchase loose milk from local Gwalaas due to faith among them.

They consider Sudha Gold as the best quality of milk due to its high price

and greater fat contents.

Housewives : Majority of them arc comparatively less

educated and notice the very faults while purchasing the product. They

put very much stress on the fat contents of the milk and are very much

concerned with price of the product.

Students / Undergraduates : Most of them living in

hostel of lodge are either single or in pair are the customer of Sudha Gold

i.e. F.C.M. as they purchase in very less quantity and are more concerned

of the quality of the product rather high price. They do not prefer

purchasing loose milk due to

Inconvenience.

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PACKAGING

The study also tried to analyze the perception of peopleon the packaging of Sudha milk. It is indicated that

approximately 5.40% of the respondents agree that thepackaging is good while 25.55% trustworthy. 17% need tochange & 2.05% people dissatiafied because of the usualappeal of the pack but because some stray cases when thepacks were sound to be damaged.

PACKAGING

P A C K A G I

55%26%

17%2%

G O O D

TRUSTW O RT

N E E D TO

C H A N G E

DISSATISF IE

HERE,

Shows the Packaging of GOOD

Shows the Packaging of TRUSTWORTHY

Shows the Packaging of NEED TO PACKAGE

Shows the Packaging of DISSATISFIED

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The following chart tries to explain the level of penetration of di

rajesh mba

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