Study of customer satisfaction for selected milk products at Desi Farms , Pune
1. Introduction and rational of the study
Introduction to the tittle
“Study of customer satisfaction for selected milk products at Desi Farms, Pune”
1.2 Rational of the study:
Fast moving consumer goods (FMCG) sector is the 4th largest sector in Indian economy. Growing
awareness, easier access and changing lifestyle have been the key growth drivers of the sector the urban
segment (accounts for revenue share of around 55%) is largest contribution to the overall revenue
generated by the FMCG sector in India. So lot of new FMCG companies entered and try to build their
position in the market and in the metro cites ( pune , Mumbai etc ) demand more about the milk
The home town small industries and other industries giving competition to established brands Like
Amul, Mother dairy gowardhan ETC. So in this present market situation if the new industries will to
establish the market small industries necessary to take effective marketing campaign and brand
By this way company understand their present market position and make improvement
1.3 DEVELOPING A MARKETING MIX
Intuition and creative thinking are essential job requirements for a marketing manager. But relying on
just these can lead to inaccurate assumptions that may not end up delivering results. To ensure a
marketing mix that is based in research and combines facts with innovation, a manager should go through
the following systematic process:
Step 1: Defining Unique Selling Proposition
The first item on the marketing manager’s agenda should be to define what the product has to offer or its
unique selling proposition (USP). Through customer surveys or focus groups, there needs to be an
identification of how important this USP is to the consumer and whether they are intrigued by the
offering. It needs to be clearly understood what the key features and benefits of the product are and
whether they will help ensure sales.
Step 2: Understanding the Consumer
The second step is to understand the consumer. The product can be focused by identifying who will
purchase it. All other elements of the marketing mix follow from this understanding. Who is the
customer? What do they need? What is the value of the product to them? This understanding will ensure
that the product offering is relevant and
Step 3: Understanding the Competition
The next step is to understand the competition. The prices and related benefits such as discounts,
warranties and special offers need to be assessed. An understanding of the subjective value of the product
and a comparison with its actual manufacturing distribution cost will help set a realistic price point.
Step 4: Evaluating PlacementOptions
At this point the marketing manager needs to evaluate placement options to understand where the
customer is most likely to make a purchase and what are the costs associated with using this channel.
Multiple channels may help target a wider customer base and ensure east of access. On the other hand, if
the product serves a niche market then it may make good business sense to concentrate distribution to a
specific area or channel. The perceived value of the product is closely tied in with how it is made
Step 5: Developing Communication / Promotion strategy
Based on the audience identified and the price points established, the marketing communication strategy
can now be developed. Whatever promotional methods are finalized need to appeal to the intended
customers and ensure that the key features and benefits of the product are clearly understood and
Step 6: Cross-check ofthe Marketing Mix
A step back needs to be taken at this point to see how all the elements identified and planned for relate to
each other. All marketing mix variables are interdependent and rely on each other for a strong strategy. Do
the proposed selling channels reinforce the perceived value of the product? Is the promotional material in
keeping with the distribution channels proposed? The marketing plan can be finalized once it is ensured
that all four elements are in harmony and there are no conflicting messages, either implicit or explicit.
Creat brand awareness in existing market
Understand consumer behivour and perception towards product
Understand market potentional for product
Understand coustomer satisfaction & challaenges towards Desi farms milkproduct
Back ground of dairy industry
The start of organized dairy handling was created in India with the establishment of Military Dairy Farms.
In the early phases, milk handling in Co-operative Milk Unions 8 was established throughout the nation on
a tiny scale. Refrigerated long range rail transport of milk from Anand to Bombay since 1945.
The large-scale pasteurization and bottling of milk for structured distribution began in Aarey (1950),
Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963), etc.
Establishment of Milk Plants throughout India under the Five-Year Dairy Development Plans. These were
taken up with the dual purpose of raising the domestic level of milk consumption and resulting in better
yields to the main milk producer. Their primary goal was to generate more, better, and cheaper milk.
Some facts about the Indian dairy industry:
India's dairy production rose from 21.2 million tons in 1968 to over 121 million tons in 2011-2012.
India is the largest producer of Milk in the World (replacing USA)
Milk supply per capita is currently 290 grams per day, up from 112 grams per day in 1968-69.
India has annual growth of milk production is 4 %
Bulk-vending - saving money and the environment
Milk travels as far as 2,200 kilometres to deficit areas, carried by innovative rail and road milk
95% of dairy equipment is produced in India, saving valuable foreign exchange.
The annual value of India's milk production amounts to about Rs. 900 millions.
Dairy cooperatives generate employment opportunities for some 12 million farm families.
Dairy Farming is the single largest contributor to the economy(4% of
GDP & 26% of agricultural GDP).
Dairy industry represents a huge opportunity being the largest single Fmcg market
Key challenges before Indian Dairy Industry are as follows:
Procurement and efficiencies in supply chain
Product differentiation and value addition
Needfor study of dairy industry:
Dairy is currently the top-ranking commodity in India, with the value of output in 2004 at 1.179 billion
rupees (US$39 million), which is almost equal to the combined output value of rice and wheat. Despite the
importance of the dairy sector in overall GDP, it receives less government budgeting than the agriculture
sector. Further, there has been no concentrated investment in the development of value-added or innovative
products, nor any serious effort to support and modernize the informal sector.
In light of the increasing demand driven by the growing population, higher incomes and more health
consciousness, the slowdown in dairy industry growth is severely worrisome. Based on estimates by the
National Dairy Development Board (NDDB), the demand for milk is likely to reach 180 million tonnes by
2022. To supply the market, an average incremental increase of 5 million tonnes per annum over
the next 15 years is required – a doubling of the average incremental rate achieved over the past 15 years.
In the absence of sufficient increased production, India will need to rely on the world market for imports.
And because of the huge volume required, it will affect global milk prices. Thus, focusing on areas for local
dairy development is critical.
Traditionally, the policy environment has favoured the expansion of cooperatives, which ultimately
crowded out the private sector. However, liberalization of the sector in recent years has encouraged private
investment in dairying. In 2002, the Milk and Milk Products Order (MMPO) ushered in major policy
changes friendly to the private sector and a momentum of activity that is likely to increase dramatically in
the coming years. Large Indian and multinational corporations, such as Reliance, Pepsi and Coca-Cola, are
planning significant investments.
Nowadays, both the private sector and the cooperatives drive the value chains. Because of the many
unsuccessful cooperatives in the country, other models of dairy farmer organizations are being explored,
such as mutually aided cooperative societies (MACS) and producer companies.
Millions of small and marginal farmers in dairying who own two to three animals and produce an average
of 5 litres comprise a critical portion of India’s dairy industry. Livestock development in general and dairy
development activities in particular are key components of pro-poor development strategies because
livestock distribution is much more equitable than land distribution. Thus, changes in the dairying
environment have important implications for the smallholder farmers and for poverty reduction.
The following characterizes India’s dairy farming and its relevance to inclusive growth:
Small and marginal farmers own 33 per- cent of land and about 60 per- cent of female cattle and
Some 75 per- cent of rural households own, on average, two to four animals.
Dairying is a part of the farming system, not a separate enterprise. Feed is mostly residual from
crops, whereas cow dung is important for manure.
Dairying provides a source of regular income, whereas income from agriculture is seasonal. This
regular source of income has a huge impact on minimizing risks to income. There is some
indication that areas where dairy is well developed have less incidence of farmer suicide.
About a third of rural incomes are dependent upon dairying.
Livestock is a security asset to be sold in times of crisis.
Factors affecting the competitiveness of the dairy sector:
To assess the dairy sector’s competiveness, a performance analysis looked at five factors: demand
conditions, market structure, factor conditions, related supporting industries, and government and the
Demand for dairy products in India is likely to grow significantly in the coming years, driven by more
consumers, higher incomes and greater interest in nutrition. Consumption of processed and packaged dairy
products is increasing in urban areas. Because of the increasing competition from the private sector, several
national and international brands have entered the market and expanded consumers’ expectation of quality
– although only among a small proportion of the population. In many parts of the country, people still
prefer unpacked and unprocessed milk delivered by a local milkman because of its taste and the perception
of freshness. The price elasticity for milk is high, thus demand for milk is very sensitive to price changes.
Table 1: Demand conditions
Market size and growth Market growth is due to high per capita
consumption, increasing population and health consciousness
Consumption patterns Consumption of processed and packaged dairy products is
increasing in urban areas
Consumption patterns Unpackaged milk is still preferred because of taste and price
Sophistication of consumers Consumer awareness on product quality is increasing but in a
very small portion of the population
Receptivity to new products Mostly urban consumers have a very low but increasing
interest in new products
Until 2002, cooperatives traditionally were the dominant players in the formal sector. With liberalization of
the dairy industry, private investment has increased quite significantly. However, the organized sector’s
share in milk procurement is very low because a large proportion of the milk and milk products are sold
through the informal channel (Table 3). The informal demand absorbs approximately 41 percent of the milk
and milk products produced in the country, accounting for about 75 percent of the marketable surplus of
milk. The formal channel, with its packaged milk and dairy products, accounts for only about 25 percent of
the marketable surplus, which is about 15 percent of production.
Table 2: Market Structure
Performance Still large share of produce; 85% of marketable surplus goes
through informal channel
Quality of milk through informal channel is an issue and to
some extent in formal channel as well
Competitive structure Little competition to cooperatives because private sector was
not allowed in the sector until recently
Entry of supermarkets in retailing of milk is increasing the
Governance (value chain type) Governance of cooperative structures is constaining efficiency
Role of "lead" or organizing firms Role of lead agency has been hampered by government
interference in cooperatives
Farmer organization Immense scope for improving management and governance
through farmer organizations
Marketing chain capacity and efficiency Scope for enhancing efficiency of distribution
Distribution channels Cooperatives have a well-developed distribution channel in
How market signals are conveyed or
Government and political interference in price setting, limits
prices being determined by market forces.
The informal sector consists of the village milk vendors who procure loose milk from farmers and sell it in
urban and peri-urban areas directly to consumers, small private processors or hotels. The milk vendors also
may sell processed products, such as paneer or separated cream. The quality of the vendors’ milk and milk
products is not guaranteed. Largely sold in loose form, it is often adulterated with several additives to
Year 2002 market structure (data)
Table 3: Flow of milk through different channels
% of production
45% 45 Home consumption
Marketable surplus sold in urban and
rural markets (informal and formal)
34.5% 19% 19
Sold in urban markets as loose
40% 22% 22
Sold as processed products through
14.5% 8% 8
Sold as packaged milk through formal
12.7 % 7 % 7
Sold as packaged milk products through
Cooperatives are the central players in the formal dairy sector. The cooperatives have a three-tier structure
i) primary societies at the village level, ii) unions at the district level and iii) federations at the state level.
Currently, there are 14 federations in India.
The success of the Gujarat Cooperative Milk Marketing Federation (GCMMF), known for its Amul brand
and its Amul model of cooperative, is acclaimed. However, there is a perception that cooperative
organizations generally have failed in other parts of the country. A less recognized fact is that the
cooperatives in other states are organized differently than the GCMMF cooperatives. The GCMMF
cooperatives operate as a true representative of farmers and are run by professionally qualified managers. In
most other states, the cooperatives are managed by civil servants, function more as government bodies and
are weak representatives of farmers.
Of the 14 major state cooperatives in the country, 10 have state government equity, of which 6 have
government equity in excess of 51 percent. Twelve of the 14 cooperatives have government officers as
managing directors who are appointed by the state government. It is not uncommon for these officials to
change up to three times a year. Because of such governance, cooperatives are mere parastatals and do not
work in the true spirit of cooperatives – with elected farmer representatives and professionals who run the
organization. This governance structure influences the functioning of the entire chain, from the state
federation to the village societies and thus significantly impacts farmers’ involvement in the chain.
The primary differences between the GCMMF cooperatives and other state cooperatives are price and
services. In Gujarat, the price paid to farmers is based on fat content; there is regular testing of milk each
farmer supplies. In most of the other states, there is hardly any testing of milk. In other state cooperatives,
the village society president wields a lot of power and typically decides the prices paid to farmers.
Reportedly, farmers with some degree of influence receive higher prices while those without receive lower
remuneration. Being the lead organizations, the cooperatives also set a benchmark for prices paid by other
buyers, such as local vendors and private dairies, who tend to pay 50 paise or 1 rupee ($ .02) more than that
paid by the cooperatives. Thus, if the farmgate price paid by the cooperative is low, other players also pay a
For most of the private dairies, agents procure the milk from farmers. Some private dairies have established
village societies for milk collection that follow the cooperative model. However, this model requires much
larger investment and is not economically feasible, considering that cooperatives receive considerable
development support from the government (such as feed subsidies). It is not uncommon for private dairies
to make loans to farmers, which is a key reason for the somewhat large share of milk directed to this
Factor conditions for dairying entail the quality of animals, human resources and technical skills, land
availability, capital, credit, infrastructure and other inputs relevant to the value chain, as the following
The quality of animals is critical in determining its milk productivity and hence overall production.
Currently, low productivity per animal hinders development of the dairy sector. Despite being the world’s
largest milk producer, India’s productivity per animal is very low, at 987 kg per lactation, compared with
the global average of 2 038 kg per lactation.
The low productivity is a result of ineffective cattle and buffalo breeding programmes, limited extension
and management on dairy enterprise development, traditional feeding practices that are not based on
Indian diary industry had tremendous milk production 40 years and has become world largets milk
producing nation with the gross out put of 74.6 million tons in 2001 .The dairy industry has
achieved this strength of producer-owend and professionally-managed cooperative system despite
fact that a majority of dairy farmers are illiterate and run small , marginal operations and many
farmers selling milk is their sole source of income .More than 10 million dairy farmers belong to
96000 local dairy cooperative who sell their sell their product to one of 170 milk producer
cooperative union who in turn are supported by 15 state cooperative milk marketing federation
2.1 What is customer satisfaction measurement?
Simply put, assessing customer satisfaction requires data collection that provides information on
how satisfied customers are with a product, or otherwise.
Overall, measurement of customer satisfaction uses quantitative questionnaires to obtain
information from service users on the level of satisfaction with service experience aspects. While
there are many different models used in the literature to conceptualize measurement of customer
satisfaction, measurement of customer satisfaction at its most basic level includes an analysis of the
discrepancy between the perception of a customer of a product or service and the experience of a
customer of a product or service. This may involve structured survey questions where service users
are asked to rank their satisfaction levels using predetermined scales or open-ended questions where
a respondent can provide details of their satisfaction with different aspects of a service experience.
Measuring customer satisfaction at a more advanced level is part of a process of quality
enhancement. Managing a customer satisfaction survey is just one part of a larger system where a
service provider uses data obtained from service customers to improve and optimize the customer's
Measurement of customer satisfaction is based on observations and methods based on academic
theories of customer satisfaction and quality of service from the business, marketing and
management fields. The disconfirmation model, which conceptualizes satisfaction as the
relationship between expectations and actual results, is one of the more widely adopted theories.
Since measurement of customer satisfaction originated in the business and marketing sectors, it has
become well known as a tool within the business sector. Measuring customer satisfaction is a
primary marketing tool for recognizing and improving business performance in competitive
markets. In advertising, customer satisfaction is perceived as the ultimate goal of any company as
satisfied customers are more likely to become repeat customers and refer another potential customer
to a business.
Although assessment methods for customer satisfaction were originally developed for use in
competitive markets, they are increasingly being extended in public sector environments as a way to
track performance and improve the quality of service. Measurement of customer satisfaction is more
commonly used for measuring performance in a range of customer service settings in a range of
public sector areas, including transport, health and disability.
Customer satisfaction:Customer satisfaction is about assessing customer attitudes about
products, services and brands. While it’s always been smart to keep customers happy (Kotler 2003),
the term “customer satisfaction” became popularized in the 1980’s with the total quality movement.
Therefore customer satisfaction postulate as one of the main indicators of business performance. It
results to repurchase behavior (Bolton, 1998; Fornell, 1992), positive word-of-mouth referrals (Oh,
1999), fewer complaints (Bearden and Teel, 1983; Fornell et al., 1996), and a smaller set of
alternative offers considered in purchase decisions (Lapersonne et al., 1995). These influences on
consumer behavior cause customer satisfaction to reduce marketing costs (Reichheld and Sasser,
1990), warranty costs (Garvin, 1988), and the business risk (Fornell et al., 2006) and contribute to
enhance sales (Gómez et al., 2004), profitability (Anderson et al., 1994; Ittner and Larcker, 1998),
stock value (Anderson et al., 2004; Ikeshoji and Enkawa, 2004), and the overall corporate image
(Anderson and Sullivan, 1993; Johnson et al., 2001).
FMCG: (Fast moving consumer) goods Consumer goods are products purchased for consumption
by the average consumer. They are divided into three different categories: durable, nondurable
goods, and services. Durable goods have a shelf life of three years or more while nondurable goods
have a shelf life of less than one year. Fast-moving consumer goods are the largest segment of
consumer goods. They fall into the nondurable category, as they are consumed immediately and
have a short shelf life.
Marketing:Marketing as a discipline involves all the actions a company undertakes to draw in
customers and maintain relationships with them. Networking with potential or past clients is part of the
work too, including writing thank you emails, playing golf with a prospective client, returning calls and
emails quickly, and meeting with clients for coffee or a meal.
At its most basic, marketing seeks to match a company's products and services to customers who want
access to those products. The matching of product to customer ultimately ensures profitability.
Marketresearch:Marketing research is the function that links the consumer, customer, and public to
the marketer through information–information used to identify and define marketing opportunities and
problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve
understanding of marketing as a process. Marketing research specifies the information required to address
these issues, designs the method for collecting information, manages and implements the data collection
process, analyses the results, and communicates the findings and their implications.
Promotion activity: Promotions refer to the entire set of activities, which communicate the product,
brand or service to the user. The idea is to make people aware, attract and induce to buy the product, in
preference over others.
Survey: A Survey is defined as a research method used for collecting data from a pre-defined group of
respondents to gain information and insights on various topics of interest. Surveys have a variety of
purposes and can be carried out in many ways depending on the methodology chosen and the objectives to
The data is usually obtained through the use of standardized procedures whose purpose is to ensure that
each respondent is able to answer the questions at a level playing field to avoid biased opinions that could
influence the outcome of the research or study
Business to Business (B2B):
Business to business also called B to B or B2B, is a form of transaction between businesses, such as one
involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business refers to
business that is conducted between companies, rather than between a company and individual consumers.
Business to business stands in contrast to business to consumer (B2C) and business to government
Business to customer: Business-to-consumer marketing, or B2C marketing, refers to the tactics and
strategies in which a company promotes its products and services to individual people: creating,
advertising, and selling products for customers to use in their everyday lives.
There are many differences when it comes to B2C marketing and B2B. Some of the most important
distinctions include the purchasing and sales process, decision-makers involved, and cost of purchases.
Perception: Customer perception refers to the process by which a customer selects, organizes, and
interprets information/stimuli inputs to create a meaningful picture of the brand or the product. It is a three
stage process that translates raw stimuli into meaningful information.
Customer expectation:Customer expectations are the feelings, needs, and ideas that customers have
towards certain products or services. Customers experience is based on what they want from the products
or services they are paying for. Most successful organizations always aim at meeting or exceeding customer
expectations through high-quality products and services. They are the outcome of a learning process and
once they are formed.
Importance of customer satisfaction:
We’ve gone through three different takes on what customer satisfaction is. But why do businesses need to
emphasize on it? It does seem like an intuitive things for companies to do, but there’s more to it. We’ve
already seen that customer satisfaction is a leading indicator to purchase intentions and customer loyalty.
Customer loyalty is also a lagging indicator of customer retention, and here are 5 compelling reasons why
customer retention matters.
As quoted by HBR, acquiring a new customer is anywhere from 5x to 25x more expensive than retaining
an existing one.
According to Gartner, your loyal customers who form the 20% of your customer base drive an additional
80% of business.
As per Mar Tech, existing customers are 3x to 10x more likely to spend than a cold lead.
According to Fred Reichheld, inventor of the net promoter score, a 5% increase in customer retention
results in a 25% to 95% increase in profits.
Compared to a new person evaluating it, price consciousness also decreases the longer a customer stays
with a product.
All this applies to your website visitors as well. Repeat visitors spend more time per page and are more
likely to leave a review too.
Satisfied customers contribute to customer retention and reducing churn. It leads to less spends or more
budget to spend on other activities. It brings in more revenue and also word of mouth. And the pursuit for
keeping our customers satisfied will enable us to continually improve upon our support functions, call
center interactions, our communications and the product itself. It will also help us set the stage for the next
task – winning customer loyalty. As customer service expert Shep Hyken has to say, “There is a big
difference between satisfied customers and loyal customers. Satisfactory is a rating. Loyalty is an emotion.”
Interestingly, Shep says this in a blog post titled ‘Why Customer Satisfaction is a Myth’. Well.
The NationalDairy Plan
The National Dairy Plan Phase I (NDP I), a Central Sector Scheme of the Government of India, is being
implemented by National Dairy Development Board (NDDB) in 18 States with a network of 150 End
Implementing Agencies (EIAs) for the period 2011-12 to 2018-19
NDP I is an externally-aided project with the total outlay of ` 22,420 million comprising ` 15,840 million as
International Development Association (World Bank) assistance, ` 1,760 million as GoI share, ` 2,820
million as share of EIAs that will carry out the projects in participating States and support of ` 2,000 million
by National Dairy Development Board and its subsidiaries for providing technical and implementation
support to the project.
NDP I is being implemented in 18 major milk producing States, viz. Andhra Pradesh, Bihar, Chhattisgarh,
Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab,
Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and West Bengal. These States account for
more than 90 per cent of the country’s milk production, over 87 per cent of the breedable cattle and buffalo
population and 98 per cent of the country’s fodder resources. However, the benefits from the project are
accruing across the country.
NDP consists of a multi-pronged series of initiatives and the key envisaged outputs under the programme
are mentioned in the table below:
Activity Key outputs
Production of High Genetic Merit (HGM) cattle
and buffalo bull
Production of 2,500 HGM bulls
Strengthening of “A” and “B” graded Semen
Production of 100 million semen doses annually
in the terminal year
Pilot Model for Viable Doorstep AI delivery
3,000 MAITs carrying out annual 4 million
doorstep AIs by the terminal year
Ration Balancing Programme Coverage of 2.7 million milch animals in 40,000
Fodder Development Programme Production of 7,500 tonnes of certified/truthfully
labelled fodder seed . 1,350 silage
making/fodder conservation demonstrations
During 2016-17, 52 sub-projects were approved with the total outlay of ` 1,256.84 million out of which `
929.85 million to be provided as grant assistance from NDP I and ` 335.99 million to be contributed by the
End Implementing Agencies implementing Village Based Milk Procurement System sub-projects.
Till 2016-17, 390 sub-projects of 162 EIAs from 18 States have been approved with the total outlay of `
19,932.03 million out of which ` 16,651.15 million would be grant assistance and ` 3,280.88 million would
be contributed by the End Implementing Agencies. The approved subprojects include 38 sub-projects for
Project Management and Learning Activities
Activity NO. approved sub projects outlay of Sub-Projects approved till
2016-17 Cumulative till
Animal breading 2 57 7095.69 0.00 7095.69
0 29 3497.33 0.00 3497.33
2 24 2671.62 0.00 2671.62
Pilot AI Delivery
0 4 926.74 0.00 926.74
Animal nutrition 20 167 3968.64 0.00 3968.64
20 117 3246.95 0.00 3246.95
village Based Milk
15 128 5198 3280 8479
Sub total 37 352 16262 3280 19,543
15 38 388 0.00 388
Total 52 390 16651 3280.88 19932.03
State-wise approvedsub-projects during 2016-17and cumulative till 2016-17is
mentioned in the table below.
Activity NO. approved sub projects outlay of Sub-Projects approved till
2016-17 Cumulative till
Andhra Pradesh 2 15 851.97 178.53 1030.49
Bihar 3 25 466.64 40.14 506.79
Chhattisgarh 0 2 41.67 19.32 60.99
Gujrat 2 46 3455.78 815 4271.10
Hariyana 1 18 760.94 8.34 769.28
Jharkhand 0 2 68.5574 33.22 101.77
Karnataka 5 34 1567.50 587.5 2154.55
Kerala 0 11 454.88 54.16 509.03
Madhya Pradesh 2 13 237.20 22.74 259.93
Maharashtra 2 37 1059.78 215.07 1274.85
Odisha 6 19 291.83 45.86 337.68
Punjab 2 22 1083.58 281.41 1364.99
Rajasthan 2 31 2161.31 572.14 2733.45
Tamilnadu 4 20 894 49.92 944.28
Telangana 1 7 225.97 39.83 265.80
Uttar Pradesh 0 24 1735.96 217.14 1953.10
Uttarakhand 3 10 368.98 86.26 455.24
West Bengal 2 15 304.45 14.48 318.93
Centralised 0 1 231.46 0.00 231.46
Sub total 37 352 16262.81 3280.88 19543.70
15 38 388.34 00 388.34
Total 52 390 16651.15 3280.88 19932.3
2.2 Historical backgroundof NDB:
The National Dairy and Development Board was established in 1965, with the task to organize bad
milk manufacturers, thereby transforming dairy into a tool for the economic development of the
rural individuals of India. The NDDB's creation came from the vision of India's then Prime
Minister, the late
Lal Bahadur Shastri, to extend the achievement of the Kaira Cooperative Milk Producer's Union (in
Mother's State) to other areas of India.
The NDDB started its activities with the mission of creating a car dairy for millions of grassroots
milk manufacturers to have a better future. The mission achieved momentum and direction with the
launch of "Operation Flood" in 1970, a 30-year program that used loan from the World Bank to
finance the emergence of India as the largest producing nation in the world. Milk commodity
surpluses were building up in Europe during this era. Imports from Europe had already had a
negative impact on India's dairy industry. Imports by individual players in India would have led in a
country-wide market glut and a drop in prices. With the support of public policy and the support of
the World Food Program, NDDB imported food aid in the form of milk powder and butter oil and
sold it under its own brand name. The surplus from these sales has been invested in expanding the
dairy industry cooperative movement. The third stage of Operation Flood was finished in 1996 and
has a number of important accomplishments to its credit.
The Dairy Board has been planning and leading India's dairy programs since its founding by putting
dairy growth in the hands of milk manufacturers and the experts they hire to handle their
cooperatives. Furthermore, on an extensive and nationwide basis, NDDB also encourages other
commodity-based cooperatives, associated sectors and veterinary biology.
2.3 MAJOR PLAYERS:
There are virtually 15 major Dairy Cooperative Federations in India, namely:
Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF)
2) Bihar State Cooperative Milk Producers' Federation Ltd (COMPFED)
3) Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)
4) Haryana Dairy Development Cooperative Federation Ltd. (HDDCF)
5) Himachal Pradesh State Cooperative Milk Producers' Federation (HPSCMPF)
6) Karnataka Cooperative Milk Producers' Federation Ltd (KMF)
7) Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF)
8) Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF)
9) Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh)
10 Orissa State Cooperative Milk Producers' Federation Ltd (OMFED)
11) Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF)
12) Punjab State Cooperative Milk Producers' Federation Ltd (MILKFED)
13)Rajasthan Cooperative Dairy Federation Ltd (RCDF)
14)Tamilnadu Cooperative Milk Producers' Federation Ltd (TCMPF)
15)West Bengal Cooperative Milk Producers' Federation Ltd. (WBCMPF)
National milk production
India is the largest producer of milk in the World. India's milk production was 100.9 million tons (subject to
provisional estimates of Jammu & Kashmir) during 2006-07.
India’s milk production has been continuously increasing over the past six decades. HS&SL estimates that
the production will continue to grow at the rate of 3 per cent per annum. Due to increasing population, even
during the years when milk production grows at 3 per cent per annum, milk availability per capita will
grow at only about 1.5 per cent per annum
Year Milk prod Per capita availability
1999-2000 78.3 217
2001-2002 80.6 220
2003-2004 84.4 225
2004-2005 86.2 230
2005-2006 88.1 231
2007-2008 103..9 252
2009-2010 110.3 260
2011-2012 117 269
Per capita availability of milk in India is very low compared to that of most developed countries. For
example, the figures for some other countries are as follows - USA – 661 g / day; United Kingdom – 656 g
/ day; Ireland – 913 g / day; Australia – 556 g / day; Brazil 327 g/ day. Indian per capita availability is
higher than of Japan (199 g / day). However, Japan gets much of its protein requirement from fish, while
India is primarily a vegetarian country where milk is an essential source of protein and calcium for most of
Milk production up 6.6% at 176.35 mm toe in 2017-2018:
India’s milk production is estimated to have increased by 6.6 per cent to 176.35 million tonnes during the
last financial year. “Milk production in the country is 165.4 million tonnes during 2016-17 and 176.35
million tonnes (provisional) during 2017-18,” Minister of State for Agriculture Krishna Raj has said in a
written reply to the Lok Sabha.
She also informed that the projected milk production by 2021-22 is 254.5 million tonnes as per the vision
2022 document. India is the largest milk producer in the world. To achieve this target, the minister said that
the department has been implementing many dairy development schemes to supplement the efforts of the
state governments to create necessary infrastructure across the country.
These schemes are - Rashtriya Gokul Mission, National Programme for Dairy Development (NPDD),
National Dairy Plan Phase I, Dairy Entrepreneurship Development Scheme, Dairy Processing Infrastructure
Development Fund (DIDF) and Supporting State Co-operative Dairy Federation
3.1 Industry profile & Organization (Company) profile
Established in the year 2016, Desi Farms is the brand name of SNA Milk & Milk products private limited:
A Maharashtra based company primarily involved in the processing and packaging of milk and milk
products. Since, the milk industry fell prey to increasing adulteration; Desi Farms was born as a response to
said problem. With a processing capacity of 75,000 litres a day, Desi Farms is all set to lead the revolution
against adulteration by providing the highest quality of products coupled with cutting-edge equipment and
technology. Setting new standards of purity with its multiple product lines, the company offers Yogurts,
Paneer, Ghee, Curd, Chass, Lassi, Mango Lassi, Amarkhand, Shrikhand, Basundi, Breads, Eggs and Khawa
among other things. The company prides itself on setting higher standards of freshness and transparency for
the milk industry to strive towards
Name of unit:
Desi farms SNA milk&milk products private limited
Logo of the Desifarms:
Address of the unit:
SNA milk&milk products private limited.
PLOT M-25, MIDC Ahmednagar, Maharashtra 41411
Pratik shashikant gupta (Managing director)
Vivek Shashikant Gupta (Director)
Alok ashokrao pawar (Director)
Provide quality product to the customers
Maintain transparency policy
To provide necessary resources required for management system to prove excellence
Milk has been an essential component of our development as people and also as a community. It is essential
that we allow this nutritious drink to maintain its purity. While the food industry suffers from significant
issues such as adulteration and ineptitude, we strive to alter the world one item at a time. To guarantee
delivery on these objectives, Desi Farms retains a strict inspection of milk quality from the moment of
procurement to final shipment. To provide every consumer with pure, fresh and unadulterated milk.
3.2 Organization structure
The member producers and their SNA milks are the
Vital constituents of the Union and their progress is the judging yardstick on
The efficiency of the Union’s operation. Hence the maximum importance has
Been given to their development. The Union is making intensive efforts over
The years to organize Desi farms milks in more and more villages of the three districts in the milk-shed
3.1 Number of members supplying milk (pune)
Sales of daily average of milk in litre (pune)
2014-2015 2015-2016 2016-2017 2017-2018
No of members Milk supplying
2014-2015 2015-2016 2016-2017 2017-2018
3.3 Product profile
Desi farms mainly does purified milk and milk products. The products
That are produced by these units are:-
GIR COW MILK
Pure Antibiotic Free A2 Gir Cow Milk
This A2 milk contains a myriad of healthy and favorable properties like proteins, vitamin A/B12, Iodine,
Potassium. The healthy properties helps in healing cancer, migraine & PMS and parathyroid hormone.
Cow milk gold
Cow milk gold Containing 3.5% Fat and 4.5 % SNF.3.0% rich, creamier and
Tastier Ideal for preparing home-made sweets & savouries
Rich Pure and Creamy Raw Buffalo Milk
BUFFALO MILK Containing 5.% Fat and 8.5 % SNF.9.0% rich, creamier and
Tastier Ideal for preparing home-made sweets & savouries
Pure Rich and Creamy Dahi
There are 62 calories in a 100 g serving of Pure rich creamy Dahi (Yogurt). Calorie breakdown: 45% fat,
25% carbs, 24% proteinAMARKHAND 400gm
Mango Rich Creamyand DeliciousAmarkhand
It is a semi-soft, sweet sour, whole milk product made from fermented lactic curd. This is strained to get'
Chakka' through muslin cloth. This' Chakka' is mixed with some sugar and pulp mango. It includes 4-6% of
fat. Amrakhand by Desi farms is renowned for its flavour and sheer mango colour. It is ready and put under
rigorous circumstances of hygiene. Its shelf life is 3 months
Healthy and Refreshing Plain Chaas
Contains 99 calories and 2.2 grams of fat. Buttermilk containsvitamins, potassium, calcium, and traces of
GIR COW GHEE
Rich and Pure Vedic A2 Gir Cow Ghee Made from Best Quality Gir Milk
Contains 897 calories and 97.2 grams of fat. Vedic A2 Gir Cow Ghee contains vitamins, potassium,
Rich and Pure Ghee Made From Best Quality Cow Milk
PER100 ml Energy: 814 kcal Energy from Fat: 814 kcal Total Fat: 90.5 g Saturated fat: 58 g Cholesterol:
190 mg Sodium: 0 mg Total Carbohydrate: 0 g Sugar: 0 g Protein: 0 g Vitamin A: 78 mc
MANGO LASSI SPECIAL LASSI
Mango Rich Thick and Chewable Rich Thick and Chewable
Contains 200 calories and 9.2 grams of fat. Special and Mango Rich Thick and Chewable Lassi
contains vitamins, k, B1,B2,B6, potassium, calcium, Magnesium .
4. Research methodology
The study took place between June 2019 and July 2019.
The study involves meeting with franchiser, retailers and customers.
It involves preparing the questionnaire to be answered by the above-mentioned individuals to
understand customers’ knowledge and comprehension of the DESI farms dairy products in Pune
In the studies, as per the questionnaire, the opinions of the above clients were register
Understand consumer behivour and perception towards product
Understand coustomer satisfaction & challaenges towards Desi farms milk products
Creat brand awareness in existing market
Understand market potential of Desi farms milk product
Scope of the study:
This study is done to study customer satisfaction in Hinjewadi area ( phase 1,phase 2,
This study is done to know customer perception about home delivery system of Desi farms
Finding of this study will act as platform to study Customer Challenges towards Desi farms
The unbiased view of the participants was desirable to perform the study effectively. The study I performed
as the representative of the Desi farms company and sometimes the representatives of the other brands such
as Chitale or Amul in order to have an unbiased view of the individuals involved and it worked towards the
Type of research:
This is descriptive and exploratory research for my studies. I conduct a sample survey. To understand the
market potential of Desi farms milk product it is necessary to find out the variables related to product
awareness quality etc There are many variables that can be known through exploratory studies related to the
milk products, but we cannot achieve a choice without descriptive research.
The primary data collected through face to face interview and questioner. Here data require for the
understanding of brand and product awareness Desi farms from Pune city (Hinjewadi area) for the
secondary data I had used last 4 months performance reports and company web site.
The research instrument was structured questioner formulated for the respondents
Respondents was consumer,
TYPES OF QUESTION:
In the design of a question, the significant element is to decide which kinds of question to use. Questions
can be categorized in different ways.
Questionnaire includes data on the following type:
1. Open-ended question
2. Dichotomous question
3. Multiple-choice Question
The questionnaire consists of all three types of question. Mostly all questions are multiple type questions.
Dichotomous and open ended questions are few in number.
Phrasing of question:
Following factors were taken into account while phrasing the questions:
As a researcher, the first and foremost question we have to ask is: in what language will the respondent
understand and respond?
My questionnaire were printed in English and administered to the respondents in the languages he
understand i.e. Marathi and English
Sequencing of question:
I arranged the questions in a sequence starting from introductory question and then proceed to main body of
4.2 Sample size:
The sample size was 77 consumers (including Desi farms milk product and competitors)
Milk and dairy products is a fundamental commodity used by almost every household, so the sample taken
for studies requires no strata or population segment. So for conducting the study, a convenient sampling
method was used.
Method of survey:
It is direct form of investigation, involving face-to-face communication with free feedback information. It
offers a sense of participation.
Personal interview is conducted through the questionnaire set for participants in various locations in Pune
city . The study helps to understand the present industry situation and find out which factors are related
product awareness Competition, Consumer personal opinion. The monitoring method is also used to check
revenue, status and normal data.
Details of Desifarms milk products as per survey conducted:
Desi farms is new brand in the market so people less aware about the products
We are not well in digital marketing (Instagram , twitter , etc) which is necessary to build product
awareness in the present market also people gave positive response after the testing our product .Retailers
got 20 to 30 % margin by our products and franchiser got 10 to 20% margin by our products
Area of operation:
Pune city (Hinjewadi area)
5. DATA PROCESSING AND ANALYSIS
The data collected from the survey is compiled in excel sheet and the interpretation after
analysing each question from questionnaire is given below.
farms milk products
•Buying milk products fromretailers
•Buying milk fromhome delivery
5.1 Consumers/customers (Male orfemale) awareness about Desifarms milk
What is the male female ratio of consumers / customer purchasing Desifarms milk
the male female
Male 47 61%
Female 30 39%
Total 77 100%
Fig no 5.1
Interpretation: The analysis of data shows that out of 77 respondents 47 respondents are
male and 30 respondents Female .All the user are purchasing of Desi farms milk product
Awarenesssabout desi farmsmilk products
5.2 Consumers/customers of Desifarms milk products
What are the Occupational statuses of buyers consuming Desi farms milk precise products?
Table no: 5.2
Purchasing Response Percentage
House wife 23 30%
Employed 38 50%
Business man 8 10%
Student 8 10%
Total 77 100%
Fig no 5.2
Interpretation: From above pie chart
50% of customers are employee purchase Desi farms milk product
10% consumers are student buying Desi farms milk products through the retailer’s
10% consumers are Business-man and buying milk and milk products from franchiser
30% consumer are house-wife and buying Desi farms milk product
5.3 Place you buy Desifarms milk product
From where you buy Desi farms milk product?
Table no 5.3
Do you buy Desi
Home delivery 53 69%
Franchise 10 13%
Retailers 14 18%
Total 77 100%
Fig no 5.3
Interpretation: from the sample of 77 respondent
69% of customers purchase milk from home delivery system, which implies "counter
sales" by franchiser. During the daily purchase of milk, these 69% individuals using
their application and the franchiser keep sales record and maintain record of purchase
18% consumers buying milk and milk products through the retailer’s
13% consumers buying milk and milk products from franchiser
5.4 Influential factor of Desi farms milk product
What are the Factors which influence a consumerto buy Desifarms milk products?
Table no 5.4
Quality 30 40%
Pricing 15 20%
Packaging 23 30%
Advertisement 9 10%
Total 77 100%
Fig no 5.4
After the tasting of sample productthe most customer influenced by quality and packaging
of the products
40% consumers buy our products becauseof quality of the products.
30% consumers buying our products becauseof packaging
20% consumers buying our products becausewe providing good productwith low
Only 10% consumers are influenced by advertising
5.5 Getting discount on milk purchase through Home delivery system
How many new or old customers getting discount on milk purchase through home
Table no 5.5
on milk purchase
New customer 24 30
Old customer 53 70
Total 77 100
Fig no 5.5
Getting discount on milk through home
Earlier we have seen that out of 77 aware consumers
Out of the 77 aware consumer the 70% of old consumers are getting benefit from
home delivery system
Total number of consumer who buys milk through home delivery is 77 out of total
sample and only 24 new consumers are getting discount on per litter of milk
5.6 Customer satisfaction towards the Desi farms milk product
What are the factors which ensure customer satisfaction towards the Desi farms milk
Table no 5.6
Factors Response Percentage
Packaging 30 40%
Taste 24 30%
Durability 8 10%
Freshness 15 20%
Total 77 100%
Above pie chart show that consumers satisfaction level about Desi farms milk product
40% consumers are satisfy with the Packaging of the product
30 % consumers are satisfy with taste of the product
20% consumers are satisfy with freshness of the product
10% consumers are satisfy with Durability of the product
5.7 Customer satisfaction towards the Desi farms Lassi (milk product)
What are the factors which ensure customersatisfaction towards the Desi farms Lassi
Table no 5.7
Factors Response Percentage
Thickness 34 50%
Taste 20 30%
Durability 8 10%
Freshness 7 10%
Pricing 8 10%
Total 77 100%
Fig no 5.7
Quality of the lassi Test of the lassi Durability lassi Freshness of the lassi
Above pie chart show that consumers satisfaction level about Desi farms Lassi
50% consumers are satisfy with the Thickness of the Lassi
30 % consumers are satisfy with taste of the Lassi
10% consumers are satisfy with freshness of the Lassi
10% consumers are satisfy with Durability of the Lassi
10% consumers are satisfy with pricing of the Lassi
5.8 Customersatisfactiontowards the Desifarms milk
What are the factors which ensure customer satisfaction towards the Desi farms milk?
Table no 5.8
Factors Response Percentage
Creaminess 34 40%
Taste 20 30%
Durability 9 12%
Freshness 7 9%
Pricing 7 9%
Total 77 100%
Fig no 5.8
Creaminess Taste Durability Freshness
Above pie chart show that consumers satisfaction level about Desi farms Lassi
40% consumers are satisfy with the Creaminess of the Milk
30 % consumers are satisfy with taste of the Milk
9% consumers are satisfy with freshness of the Milk
12% consumers are satisfy with Durability of the Milk
9% consumers are satisfy with pricing of the Milk
5.9 Problem facedby consumers by using Desifarms milk product:
Which are the problems facedby consumers by using Desifarms milk product?
Quality 6 8%
Refund 50 66%
Packaging 9 10%
Delivery 12 16%
Total 77 100%
Quality related problems (milk) delivery related problem
Packging relted problem Refund relted problem
Above pie chart show that consumers are facing different problems about the productand
16% consumers are facing delivery related problems (ex:milk delivery is not
provided at the right time)
8% consumers are facing quality related problems (Ex whole buffalo milk is torn and
got yellow colour)
66% consumers are facing refund related problems
10% consumers are facing packaging related problems
6.1 INTEGRATED BRAND PROMOTION – IBP
Integrated brand promotion is described as a brand to generate brand exposure using a broad variety of
communication and promotional tools. Our target market is small area so we avoid large-scale advertising.
We were use POP, Wall painting and Pamphlets will be advertising media car. The entire marketing should
operate together in order to achieve integrated brand marketing
Advertising is a type of marketing communication that encourages, persuades, or manipulates an audience
(viewer, reader, or listener; sometimes a particular group) to proceed or take some fresh action. Most
frequently, the required outcome is to drive consumer behaviour towards a business offering. In many areas
of Pune consumers don't know about Desi farms milk and milk products,
it was discovered in market research. Advertising is therefore essential for Consumer (Discounted amount)
Company Representative Company Franchiser to be aware of the Desi farms products to the customer.
There are different methods of advertising, but hording and posters will be the most efficient mode.
Advertising is a non-personal presentation of goods and services and only non-personal mode to
communicate the consumer about product is not sufficient. Hence promotional activity required
Business promotion is an active method that needs to be scrutinized very carefully in order to achieve the
highest outcomes. You can make full use of the resources you have and come up with strategies to
encourage and let your company thrive.
Marketing and promotional policies go hand in hand. Marketing your brand or product will include various
elements of the customer's production, promotion and sale of products. Promotion is a main component in
providing clients with the advantages of your product or service. Well-designed marketing and promotional
strategies guarantee long-term success, attract more clients and guarantee business profitability.
I had conducted promotional activity on 22 June 2019 at Hinjewadi (beside brand factory mall) and time
was 6 pm and this all thing went to successfully because of MR.Niranjan and my all efforts. By this
activity we create some product awareness in the Hinjewadi phase 1 area and introduce our brand in front
of people and they like our products (specially lassi) also they love other products. In this promotional
activity I had use our sample product for tasting. Also collecting review of people
Date: 22 June 2019
Location: Hinjewadi phase 1 (near brand factory mall)
Instruments: banner standee, 4 wheeler (Tata ace), pamphlets, questioner
Sample products: Lassi, milk, Number of visitors: 50
7. Finding and suggestion
Consumers love our specific product ex (Gold milk cow, special lassi, mango lassi )
Home delivery system help to increase sales of milk
Home delivery customers are quite happy with refund
Consumers are happy with packaging
Consumer are satisfy with Product quality
Consumer are quite happy with pricing of the product
Consumer are satisfied with thickness of the lassi
The suggestion for the company for further growth and more sales and capture of market
Effective product awareness should provide by Desi farms to consumers
Company should provide offers & other benefits to consumers
Company should improve Pricing policy about the product
Desi farms visibility is very low in Pune in terms of advertisement hence
Desi farms should come up with advertisement of brand as well as advertisement of benefits of the
Customers have good perception about quality, Packaging of product it also quit happy with home
delivery system. this system convenient according to the customer
Most of the people who were surveyed are aware about Desi farms milk product
Desi farms as a business overall stands in a good position moving forward and can easily gain a
good market position and win over more customers from competitors
Customers are quite happy with refund policy of company. Customer demanding improvement in
the refund policy
Overall Customer are satisfied by product quality , test , packaging overall Happy with specific
Hinjewadi is vast are it was difficult to get sample data
The respondents Did not cooperate as consider
Most of the respondents had holiday at Saturday and Sunday so It was difficult manage time of
meeting according them
To understand the Consumer problem it was difficult because There answer was different varied
Lack of information source in the analysis part
It was tough task to promote sample product because Company didn’t have on advertisement and
9.1 BIBLIOGRAPHY & WEBLIOGRAPHY
Philip kotler, Kelvin lane , Abrham koshy,Mithileshwar jha,Marketing management(South asain
Prospective) 13th Edition,Person.
Micheeal j.Etzel,Bruce jwalker,Marketing concepts and cases,Tata megraw-hill publishing company.
IMARC group market research report dairy industry India 2019 edition.
IDA (Indian dairy association) All India Dairy Business Directory 2014-15 (5th Edition).
William j stanton,Fundamentals of marketing, Tata McGRq-Hill
www.wikipedia.com www.indianmilkproducts.com ,
A STUDY ON CUTOMERS PREFERENCE TOWARDS
DESI FARMS MILK PRODUCT
2. Occupational status:
3. From where do you purchase Desi farms milk product?
Do not buy
4. Do you use home delivery service?
5. Important factors to buy factors that influence you most for the purchase through home delivery
6. Do you get discount on milk purchase through home delivery system as new customer?
7. Do you get discount on milk purchase through home delivery system as old customer?
8. Indicate your level of satisfaction towards the Desi farms milk product By following question
(1=Very bard 2=poor 3=average 4=Good 5=excellent )
5 4 3 2 1
Quality of the milk product
Taste of the milk product
Durability of the milk product
Packaging of the milky product
Freshness of the milk product
9. Factors which influence you to buy Desi farms Lassi (Milk product) by following question?
1 Thickness of the Lassi
2 Taste of the Lassi
3 Durability of the Lassi
4 Packaging of the Lassi
10 . Factors which influence you to buy Desi farms milk by following question?
11. Have you faced any problems while using Desi farms milk product?
Reason Always Often Sometime Not at all
1 Creaminess of the
2 Taste of the milk
3 Durability of the milk
4 Packaging of the milk