Soma 1

Study on Distribution Strategy of Nandini Milk In MANMUL

A STUDY ON CHANNEL MEMBERS SATISFACTION OF NANDINI LIQUID MILK

IN

MANDYA MILK UNION LIMITED. (MANMUL)

INTRODUCTION:

A channel member satisfaction is defined as the satisfaction towards their performance and

services to both organization and customers. There are many definitions for customer satisfaction,

But, All are converging on above meaning.

In case of MANMUL, the liquid milk (Nandini) is distributed to customers by the one level

channel. i.e. from producer to agents & from agents to customers. The prime channel members of

MANMUL are Producer, Retailers, Parlors owners, Agents…etc

. MANMUL includes 39 distribution routes constituted by both urban agents and rural

agents, Totally 872 agents in 872 distribution centers and 2 milk parlors’ are maintained by

MANMUL.

OBJECTIVES OF THE STUDY

The objectives of study on channel member’s satisfaction of Nandini liquid milk in MANMUL are

1) To know the levels of channel members at MANMUL.

2) To understand the channel members service to both MANMUL and other channel members.

3) To measure the effectiveness and evaluation of channel members performance in

MANMUL..

Dept Of MBA ,Marketing


PROJECT METHODOLOGY

The research to study channel members satisfaction of Nandini liquid milk in MANMUL includes primary data collection and secondary data collection methods.

1) Primary data collection

The primary data collection for the study on channel member’s satisfaction of Nandini liquid milk in MANMUL includes the following.

(a) Direct observation in MANMUL

(b) Questionnaire for channel members.

2) Secondary data collection

The secondary data collection for the study on channel member’s satisfaction in MANMUL includes the following methods.

(a) Company profile 2011-11

(b) Annual reports of MANMUL 2010-11

(c) Magazines like NANDINI, PRAGATHI, REVOLUTION ……etc

SCOPE OF THE STUDY

The study on channel member’s satisfaction of Nandini liquid milk in MANMUL has following scopes-

(1) To understand the different ways of motivating channel members of Nandini liquid milk in MANMUL.

(2) The study gives the information about special provisions and incentives given to channel members to increase the sales of milk.

(3) The study gives the comprehensive picture of different strategies adopted by channel members of MANMUL to improve sales of milk.



(4) The study gives information about the method of selection of agents to sell Nandini liquid milk.

(5) This study is helpful to understand what are all the basic qualities required for channel members of MANMUL to increase sales of milk.

(6) This study is helpful to know about training programs provided to channel members by MANMUL to improve their knowledge to sell milk.

LIMITATIONS OF THE STUDY

The study on channel member’s satisfaction of Nandini liquid milk with reference to MANMUL has the following limitations.

(1) The study period in MANMUL is limited to 8 weeks only.

(2) The study on channel member’s satisfaction in MANMUL is limited only to Nandini liquid milk products.

(3) The study and survey is limited to Mandya and near geographical area.

(4) The study gives the distribution pattern of only Nandini liquid milk regarding with Mandya geographical area.



EXECUTIVE SUMMARYThe Project entitled “A STUDY ON CHANNEL MEMBERS SATISFACTION OF

NANDINI LIQUID MILK “– conducted in MANMUL, Gejjalagere plant, Mandya Dist. This

study has been undertaken with the objective of measuring the effectiveness and evaluation of

channel members of Mandya milk union limited (MANMUL).

This study also serves as guideline for the respective organization. The data was collected

from the channel members using structured questionnaire and from secondary sources. The data

collected has been analyzed and interpreted using tables and graphs with suggestions.

From this study, I came to know the different methods of distribution of Nandini milk

to both urban and rural agents and also from this study; I came to understand the comprehensive

picture of different strategies taken by MANMUL to distribute the Nandini liquid milk.

The respondents were satisfied with the time management of delivery vehicles and also

satisfied with the pricing and promotion strategies of the organization. And promotion strategy of

the company. This study is limited only to Mandya due to time constraint. The sample size is

limited to about 50 channel members.

While, conducting a survey to collect information from channel members, Iam coming

to know that, Most of the agents are Illiterates. They were not even in the position of

understanding the simple questions of questionnaire. And most of the respondents are not willing

to answer.

Since, Nandini has a strong brand image; it would be beneficial for the company to

leverage its brand name. This study concludes with a view of its channel members satisfaction and

excellent time management technique while distribute milk to different levels.

This study has been conducted for academic purpose and it will be successful study only if

the findings and suggestions are helpful to the organization under study.



INDUSTRIAL PROFILE



1. INDUSTRIAL PROFILE

Information of Milk and Milk Industry:

The progress of mankind and civilization has, since history began, been closely alike with his diet.

Even today the leading nation and nations capable of becoming strong are those, which can obtain

food in abundance for their people.

India is the highest milk producer in the entire globe. India is otherwise known as the ‘Ocean’ of

the global dairy industry, with great opportunities to the entrepreneurs globally. Anyone might

want to capitalize on the largest and fastest growing milk and milk products' market. The dairy

industry in India has been witnessing rapid growth. The liberalized economy provides more

opportunities for MNCs and foreign investors to release the full potential of this industry. The

main aim of the Indian dairy industry is only to better manage the national resources to enhance

milk production and upgrade milk processing using innovative technologies.

Origin of the industry:

The term “Market Milk” refers to fluid whole milk that is sold to individuals usually for direct

consumption. As a major enterprise, the market milk industry is of comparatively recent origin

even in developed dairy countries such as U.S.A. Though ancient written records report milk as an

important food, it’s processing and distribution as a separate commercial business did not develop

in those countries until the concentration of population in the cities reached a high-level in the

middle of the nineteenth century, however, market milk technology may be considered to have

commenced in 1965, with the functioning of the central dairy of Aarey milk colony and milk

product technology in 1956 with the establishment of AMUL Dairy Anand.

GROWTH AND DEVELOPMENT OF THE INDUSTRY:

Until the 1940, there was very little published information on the method of preparation and use of

these products. The credit for the first publication on the subject goes to Dr. W.B.Davis, the first



director of the industry research, Indian Diary research Institutes (now National), Bangalore.

Within the span of these four decades since his book appeared, considerable research has been

places in indigenous Dairy products.

PRESENT STATUS OF THE INDUSTRY:

With unprecedented growth in milk production by over two and a half time in the also two decades

to about 58.8 million tons in 1992, India has emerged as the largest milk producer in the world

with an annual milk production of 76 million tones. Food processing industry ranks as the fifth

largest industry in the country. Though the milk and milk products have 85% business in

unrecognized sector, it is having only 7% growth per year. Today, over 275 dairy plants and 83

milk products factories in the co-operative, public and private sectors handle an estimated 12%--

15% of the total milk produced. In most of the countries in the world, the proportion of milk

delivered to the dairies is over 90%. The value of the output of the dairy products in the country’s

food sector has increased from 5%-7% during the same period.

CHANGING PATTERN OF THE INDUSTRYThe demand for milk and milk products in the country is on the rise. The current trends indicated

that 44% of the total population would be urban. This will definitely lead to an increase in

consumption of dairy products.

The domestic market for butter and ghee is growing at a healthy rate of over 10% per annum but

the same may not be true in case of an international market. The production and export of butter

has witnessed a major decline in some of the developed countries.

Ice cream, a modern frozen dairy product, is relatively new addition in India. At present, the

market reach of an ice cream may not be very large. But, the potential market is more than the ten

times. That might be one of the reasons that a company like Unilever group has delivered into this

segment to build their brands and capitalize its production in Indian market.



COMPANY PROFILE



2. COMPANY PROFILE

KARNATAKA COOPERATIVE MILK PRODUCERS' FEDERATION LIMITED (KMF):

KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the third

largest dairy co-operative amongst the dairy cooperatives in the country. In South India it stands

first in terms of procurement as well as sales. One of the core functions of the Federation is

marketing of Milk and Milk Products. The Brand 'NANDINI' is the household name for Pure and

Fresh milk and milk products. KMF has 13 Milk Unions throughout the State which procure milk

from Primary Dairy Cooperative Societies (DCS) and distribute milk to the consumers in various

Towns/cities/Rural markets in Karnataka.

The first ever World Bank funded Dairy Development Program in the country started in Karnataka

with the organization of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy

co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from

World Bank, Operation Flood II & III. Coordination of activities among the Unions and

developing market for Milk and Milk products is the responsibility of KMF. Marketing Milk in the

respective jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid milk

among the member Milk Unions is monitored by the Federation. While the marketing of all the

Milk Products is organized by KMF, both within and outside the State, all the Milk and Milk

products are sold under a common brand name NANDINI.

List of co-operative milk producers’ societies unions:

Bangalore Milk Union

Belgaum Milk Union

Bellary Milk Union

Bijapur Milk Union

Dakshina Kannada Milk Union



Dharwad Milk Union

Gulbarga Milk Union

Hassan Milk Union

Kolar Milk Union

Mandya Milk Union

Mysore Milk Union

Shimoga Milk Union

Tumkur Milk Union

2.1 BACKGROUND AND INCEPTION OF THE COMPANY:

Mandya Milk Union was registered in the year 1987. The Product Diary, Gejjalagere was then

managed by Mysore Dairy. In the year 1988, The Product Diary, Gejjalagere was handed over to

Mandya Milk Union. MANMUL with its headquarters at Gejjalagere has got liquid milk plant of

2.0 Lakh liters capacity and a powder plant of 10 MT capacities per day through the assistance of

NDDB. It has two chilling centers at Nagamangala and KR Pet. The diary has a spread of 47 acres

of land at Gejjalagere and 3 acres each at KR Pet and Nagamangala.

MANMUL was a part of Mysore & Tumkur Milk Union till 1987. In 1988 Union started

marketing about 5,000 liters per day which gradually extended to about 15,000 liters. There came a

boom through the advent of milk marketing in Bangalore city from 1993. As on today the Milk

sales is about 1.59 lakhs liters per day(1.24 lakhs liters in sachet and 0.35 lakhs liters in bulk) with

annual turnover of Rs.65 crores alone on this account out of the total Rs.100 crores turnover

through the sales including milk products like Skim milk powder (SMP), Butter, Ghee, Burfi,

Lassi, Curds etc. Once MANMUL got hold of the Bangalore marketing, it has a steady and

continuous profits from 1994-95.



2.2 NATURE OF THE BUSINESS CARRIED:

The MANMUL is stand for Mandya milk producers co-operative union limited. As the name

implies the union is found for the purpose of the milk producers who were un-organized in nature

in earlier days before foundation of this unions. The nature is that the organized milk union formed

for the protecting the interest milk producers who were, un-organized in nature in olden days. In

previous days milk producers were, who situated in villages are used to keep cows, buffalo’s,

goats, sheep’s etc. in that time what milk they produced is has no any organized market and they

were not getting reasonable price for produced milk. These are provide the milk producers status

in that time how they un-organized in nature. This is basis for the foundation of these dairy

unions.

Mainly the union stands for accumulating the milk from the milk producers who located in villages

in large numbers. From its village level co-operative societies, milk transported through trucks to

district milk union. Union supplies that milk to the milk buying customers who located in the

urban areas. They use of fix the reasonable price to both buyers and milk producers.

2.3 VISION, MISSION AND QUALITY

VISION:

To grow in to Model Co-Operative Milk Union in the country.

To produce more, sell more and serve more.

MISSION:

Assuring the rural prosperity in the lives of members of milk producers in Mandya district.



THE QUALITY POLICY AND OBJECTIVE:

1. To encourage rural farmers to engage in dairy forming and producing more milk and

good quality of milk at least cost.

2. To provide assured and remunerative market for the milk produced by the farmer

members.

3.To provide good quality of milk and milk products to the people of urban area by

scientifically processing the milk obtained from rural area.

4.To create harmonious environment for the union can perform at its best, being a

communication bridge between producers and consumers.

5.To build village level institution co-operative sector to manage the dairy activities.

6.To provide good quality milk and milk products at competitive price to urban and rural

consumers in order to fulfill this objective, the union is constantly engaged in working

towards improvement s of the business as well as the welfare of members. This has resulted

in greater performance on commercial as well institutional fronts.

2.4 Product Profile:

Constituents of milk percentage

WATER 87.0%

BUTTER FA 4.0%

CASEIN 2.8%

ALBUMIN 0.5%

LACTOSE (MILK SUGUR) 5.0%

MINERALS 0.7%



The following are the Products and their quantity offered by MANMUL:

Nandini Toned Milk

Karnataka’s the most favorite milk. This milk contains 3.0% of fat and 8.5% SNF. Available in

500ml and 1 liter packs.

Nandini Homogenized Toned Milk

This is pure milk which is homogenized and pasteurized. Consistent right through, it gives you

more cups of tea and coffee and is easily digestible. Available in 500ml and 1 liter packs.

Nandini Full Cream Milk

Pure milk contains 6% fat and 9%SNF. A rich, creamer and tastier milk which is ideal for

preparing home-made sweets and savories. Available in 500ml and 1 liter packs.



Nandini Curd

Nandini Curd made from pure milk. It is thick and delicious, gives you all the goodness of home-

made curds. Available in 200gms and 500gms sachets.

Nandini Butter

It is rich, smooth and delicious. Nandini Butter is made out of fresh pasteurized cream. Available

in 100gms, 200gms and 500gms packs.

Nandini Ghee

It is taste of purity. Nandini Ghee made from pure Butter.Hygenically manufactured and packed in

a special pack to retain the goodness of the pure Ghee.



Nandini Peda

No matter what you are celebrating! Made from pure milk, Nandini Peda is a delicious treat for the

family. Store at room temperature approximately 7 days. Available in 250gms pack containing 10

pieces each.

Nandini Milk Powder

Nandini Milk powder gives purity and taste as similar to liquid milk. It can be store for long time

than liquid milk at room temperature. Available in 50gms, 100gms, 200gms, 500gms and 1 kg

packs.



The table shows various milk and milk products manufactured at MANMUL

Sl. No.

Product Name Quantity Dealer’s rate MRP

1 Toned Milk 1 LTR 23.16 24.00

2 Homogenized Toned Milk

250 ml

500 ml

6.76

12.06

7.00

12.50

3 Double Toned milk

500 ml

250 ml

11.10

5.79

11.50

6.00

4 Full Cream Milk 1 LTR

500 ml

5 Ghee 200 ml

500 ml

1000 ml

15 kg Tin

54.55

133.64

263.64

4363.65

60.00

147.00

290.00

4800.00

6 Skimmed Milk Powder

50 Grams

100 Grams

200 Grams

500 Grams

1 Kg

8.85

17.70

40.91

113.64

204.55

10.00

20.00

45.00

125.00

225.00

7 Butter 500 Grams 116.07 130.00

8 Curds 200 Grams

500 Grams

6.48

13.88

7.00

15.00

9 Peda 250 Grams 62.50 70.00



2.5 Area of operation:

As a district milk union under KMF, individually the union has no opportunities to expand their

operation. This is because the MANMUL is structured under KMF as a district milk union of

Mandya district. The union itself acts as a branch of KMF but the union has opportunities by way

of marketing its milk products out of its limited market borders means of its district market

borders.

The district milk unions are controlled by the KMF, which acts as a mother organization to all

other district unions in the Karnataka. The union receives all types of demand orders from in and

outside the company. Especially the milk powder is more demand from foreign countries the

union will produce other milk product according to their demand rate.

2.6 Ownership Pattern of MANMUL:

The ownership pattern in the MANMUL is characterized by members share capital investment.

The members of the unions are the dairy co-operative societies (DCS), which parented by the

district milk union. The unit, which acts as representative member of district milk union by

locating in villages, is called as co-operative dairy society of respective village.

Presently member share capital structure of the union is as here under. Accumulated members

share capital in union is share capital; this share capital is deposited in MANMUL bank account in

the name of respective member dairy co-operative societies.

2.7 Competitors Information:

The competitors for these union milk and milk products are other states milk unions, counterpart

district union in Karnataka state and branded milk product producing companies.

Other district milk union’s products

The competitors like loose milk supplier which engaged in accumulating milk and supplying that

milk to respective district customers. This results in competition between district milk unions

themselves, is the reason for the union losing the chance of getting new markets.



The prime competitors in the market for Nandini milk are;

HERITAGE

SWASTHIK

DODLA

AROGYA

THIRUMALA

SHRUTHI

JERSY

2.8 Infrastructural Facilities in MANMUL:

a. Production infrastructure facilities

MANMUL has got liquid milk plant two – lakh liters capacity and powder plant of ten M T

capacities per day through the assistance of national dairy development board (NDDB). It has

chilling centers at Nagamangala, Malavalli and K.R.Pet. The dairy has a spread of 47 acres of land

at Gejjalagere and 3 acres each at K.R.Pet., Nagamangala and Malavalli. The union has its own

trucks for transporting the milk from dairy co-operative societies to its production units, with good

milk from dairy co-operative societies its production units, with good milk procurement networks

b. Canteen facilities for employee and workers

As a Section 46 of the factories act, 1948 imposes a statutory obligation to employees to provide

canteens in premises employing more than 300 workers, in MANMUL a big canteen is situated

beside the working complex to provide canteen facilities.

c. Accommodated buildings for operations of the union

The union has good building infrastructure facilities to smooth functioning of different

department’s day-to-day operations in organization.



2.9 ACHIEVEMENT/AWARDS EARNED BY MANMUL:

On 26-03-2005 the union is recognized as “ONE OF THE HONEST INCOME TAX PAYER” by

the commercial taxes department. Other achievements of the union can be revealed in following

milestones of the union.

1. Establishment of 18 co-operative societies in district, which duly administered by women

members.

2. In 1993-94 the union has increased its milk production [amt capacity to 2.0

lakh liter.]

3. In the year of 2002-03 the union has got the international license. The MANMUL is the first

south milk union in getting this license.

4. The union is first union for supplying ghee to “SHRI THIRUMALA TEMPLE” through the

tankers.

5. In the year 2003-04 the union has developed consolidated price list for cows’ milk and

buffalo’s milk, which is first in this types in all over Karnataka state. In the same period the union

released double toned milk.

6. In 2009-10 creating the availability of milk and milk products through Exclusive joints (ATM’s

and Parlors). One ATM counter to be started in Mandya town.

2.10 Work flow model of MANMUL:

K.R.Pet

Chilling center

Nagamangala

Chilling center


K.R.PetChilling center

NagamangalaChilling center

MANMUL

DCS

DCS

DCSDCS DCS DCS

DCS

Separation

Pasteurization

Production

Processing section

Packaging




D C S: District Cooperative Society

The workflow model which presents the operation of the company in the form of model is shown

in following pictures. The end-to-end work process of company can be divided into 5 stages as

year under. The figure shows the sequence of bringing to milk into MANMUL

Sequence of bringing milk into MANMUL:

Stage1. The workflow of the union starts from the process of the union starts from the process of

weighing, sampling and chilling of procure milk from its member and non-member co-operative

societies. The raw milk collected from societies transported to union through trucks.

Stage2. This stage start with the process of storing the processed milk means of milk processed

under the stages of weighing, sampling and chilling processes. The stored milk under this process

is ready to use from next process for producing milk products. The milk stored in insulated tanks.

Stage3. The stored milk processed under standardization process to get required quality after this

process the milk sent to another two process namely cream separation process and pasteurization

process.

Stage4. The cream separated milk is stored in insulated tanks. The separated cream is processed

and stored for next processes. In next stage hat cream is used for production of butter, ghee, Peda

and cream based milk products.

Stage5. In this stage the stored milk which already pasteurized and stored insulated tanks is sent to

packaging processes. The packed milk stored in cold storage of 5 degree centigrade.

2.11Future growth and prospects:

The union intends to establish total of 100 DCS by the end of 2010.

Planed to establish artificial insemination centers and chilling centers across the district. For this

they are expected expenses of Rs 16800 for single AI centers, and Rs 201600 for cluster centers.

Cowpea production 1.5 metric tons, 2500000 of route slip.



The milk procurement is expected to increase to 4480-kgs.per day.

The local sales are expected to 108610 LPD and bulk sales are 51610 LPD.

Cattle food sales will also be increased to 106 metric ton.

In addition to strengthening of market, network quality assurance programs and milk enhancement

activities will be undertaken.



AN OVERVIEW OF STUDY ON CHANNEL MEMBERS SATISFACTION IN MANMUL



INFORMATION ABOUT CHANNEL MEMBERS OF MANMUL

Prime channel members: The prime channel members of Nandini liquid milk products

in MANMUL are Producers, Retailers, agents and parlors owners. More than 900 retailers, 872

agents and 2 parlors are playing a major role in distributing nandini liquid milk.

BASIC QUALITIES REQUIRED FOR CHANNEL MEMBERS OF

MANMUL

Following are some of the basic qualities required for channel members of Nandini liquid

milk in MANMUL.

1) Efficiency in work.

2) Negotiation techniques.

3) Timely delivery.

4) Financial capacity.

5) Designed layout.

6) Sales skill and sales experiences.

7) Educational qualification..etc

SELECTION CRITERIA OF AGENTS: In MANMUL, agents are selected on the basis of

financial capacity, layout and his efficiency. And agents are also selected on the basis of

Nomination of members of MANMUL.



TRAINING PROGRAMES FOR CHANNEL MEMBERS IN MANMUL

K.M.F. and MANMUL adopted some training programs for channel members of Nandini

liquid milk to improve their knowledge and to increase the sales of nandini liquid milk. The impart

ant training programs are

1) Self study system.

2) On the job training.

3) Presentations… etc

DISTRIBUTION METHODS OF NANDINI LIQUID MILK IN MANMUL

1) Distribution through agents.

2) Direct distribution to industrial customers.

3) Distribution through parlors.

4) Direct distribution to occasional customers.

MOTIVATIONAL TOOLS: To motivate channel members of Nandini liquid milk,

MANMUL adopted some Motivational tools which encourage channel members to improve

their sales. Which are

1) Incentives

2) Bonus

3) Awards and rewards

4) Promotions..etc



DISTRIBUTION STRATEGIES OF MANMUL

MANMUL not only operates in Mandya district, But, Also operates in some parts of

Bangalore Rural and Bangalore Urban. It operates more than 600 distribution centers, concerning

all the agents besides, there are 2 milk parlors maintained by the dairy.

The following are the strategies of Distribution which are adopted by MANMUL to

efficient and easy Distribution.

1) All the Heavy vehicles are changed to Medium insulated vehicles to ensure timely supply.

2) To strengthen Home delivery & to encourage delivery boys, Water proof caps & HDPE bags are

provided.

3) Divide the area of operation in particular basis to fast supply of Nandini products.

4) Door to Door campaigning is taken to improve distribution method.

5) Milk is made available throughout the day by opening "ANY TIME MILK COUNTERS".

6) It is a future plan of MANMUL that Agents are assigned between every 200 meter within

geographical area.

Effective sales distribution of Nandini liquid milk is influenced by the following aspects.

1) Producer of the milk.

2) Brand name of the milk.

3) Quality of the milk.

4) Availability of the milk.

5) Price of the milk.

6) Promotion about the milk product.



LEVEL OF DISTRIBUTION:

MANMUL adopted 1 level distribution to distribute its products to consumer.

This level includes mainly, producers (MANMUL), agents, retailers, parlous, industrial customers,

occasional customers…etc

AREA OF OPERATONS:

Mandya taluk Pandavapura taluk

Maddur taluk Ramanagar taluk

Nagamangala taluk Magadi taluk

Malavalli taluk Channapatna taluk

K.R. pet taluk Bidadi taluk

Srirangapatna taluk Kengeri

Distribution routes: 44

Distribution unit: liter

Big parlors: 02

Retailers: more than 200

Agents: more than 900



SWOT ANALYSIS



4. SWOT ANALYSIS

Strength

1. Market leader for both milk products and services.

2. Provides excellent veterinary, AI, Vaccination, Extension facilities, Feeds and Fodder seeds

supply etc., in the field, which cannot be thought off by any private operator. Hence earned lot of

goodwill from member producers, who patronize the Union throughout the year.

3. Has earned the distinction of not failing to deliver the Milk to Market on time throughout the

year.

4. “NANDINI” is a trusted household brand name. Highly remunerative and timely payment to

producers.

5. Union is in good financial position, even with least margin between procurement price (one

among the highest in the country) and sale price (one among the lowest in the country).

6. Good institutional support from KMF, NDDB, NCDFI, Etc.,

Weakness

1. Lack of flexibility in deciding about its operation. No authority over issues like pricing,

offering volume discounts etc.

2. No replacement policy, resulting in safe indenting by the Agents.

3. Inter – Union competition in same place.

4. Organizational structure does not permit incentive/ reward for good performance among DCS,

Sales Agents, Material suppliers and Employees for Quality performance, achieving volumes,

etc.

Opportunities

1. MANMUL has got eternal Bangalore market which can be extended very comfortably to 1.5

Lakh liters market in about couple of seasons.

2. Because of logical location MANMUL has perennial supplies of milk to Tamil Nadu and

Kerala

3. At much better price than any other milk unions’ price obtained in Karnataka.



4. Institutional markets, bakeries, hotels, Etc., are not fully tapped and these can captured

preferably by direct marketing.

5. Market milk share of unorganized sector still remains to be tapped.

6. Diversification into milk products like Peda, Burfi, Lassi… etc.,

Threats

1. After liberalization, entry barriers in the dairy industry eased for new entrants.

2. Private dairies procure milk at lost cost from producers and sell milk resorting to unethical

trade practices. It is a marketing war in which union has to fight by rules and other i.e., private

dairies do not fight by rules. Hence, there is no level playing field for organization with social

responsibilities to compete with organizations with purely profit motive.

3. Some private dairies are selling homogenized milk, which appears rich. The union cannot

homogenize all its huge quantity of milk being sold due to lack of homogenizing capacity and

increase in processing cost.

4. Absence of foolproof quality/ adulteration monitoring mechanism by the government, resulting

in proliferation of adulterated / substandard milk in the unorganized sector and by private dairies.

5. Plans of major companies like Reliance, ITC to enter into milk market in

future.

6. The competition from co-operatives like AMUL, VIJAYA, AAVIN... Etc., for the products

like SMP, Butter, Ghee, Etc.



ANALYSIS OF FINANCIAL

STATEMENT



5. SUMMARY OF LATEST ANNUAL REPORTS OF THE MANMUL


Particular Rs Rs

Trading account

Sales Account 3356981489.79

Less: Cost of goods sold

Opening stock 69700789.68

Add: Purchase a/c

2,840293024.93

Less: Closing stock

80676996.67

2829316817.94

Direct Expenses 231827535.19 3061144353.13

Gross Profit 295837136.66

Income statement

Indirect income

Interest on deposit and advances

2013900.10

Other income 12079769.12 14093669.22

Indirect Expenses

Administrative Expenses

8628207.10

Interest and Banking charges

6527955.03

Selling and Distribution

Expenses

52438230.12

Staff Expenses 122895510.01

Taxes and Insurance

34804828.51

Depreciation 18001679.10 243296409.87

Net Profit 66634396.01


Profit and Loss Account For the Period Ending 31st March 2011

Table No. Profit and Loss Account for the Period Ending 31st March 2011


Particular Rs Rs

Trading account

Sales Account 3356981489.79

Less: Cost of goods sold

Opening stock 69700789.68

Add: Purchase a/c 2,840293024.93

Less: Closing stock 80676996.67

2829316817.94

Direct Expenses 231827535.19 3061144353.13

Gross Profit 295837136.66

Income statement

Indirect income

Interest on deposit and advances 2013900.10

Other income 12079769.12 14093669.22

Indirect Expenses

Administrative Expenses 8628207.10

Interest and Banking charges 6527955.03

Selling and Distribution Expenses 52438230.12

Staff Expenses 122895510.01

Taxes and Insurance 34804828.51

Depreciation 18001679.10 243296409.87

Net Profit 66634396.01


Balance sheet as on 31st March 2011

Particulars Rs

Sources of funds

Capital Account 180392228.39Loans(Liability) 88924627.00

Current Liabilities 168595614.21

Audit Objection(A) 3022615.20

Audit Recoveries(L) 3724356.43

Other Funds 2821435.65

Profit and loss account 98843284.05

Total 546324169.93

Application of funds

Fixed assets 162135673.38

Investments 11707000.00

Current Assets 365708819.98

Audit objections(L) 3022615.20

Audit Recoveries(A) 3750052.37

Total 546324160.93



Table No. Balance sheet as on 31st March 2011 and 2010

Ratio Analysis

Ratio Year 2010 Year 2011

Liquidity Ratio

2010 2011

Current Ratio

1.89:1 2.17:1

Quick Ratio 1:41:1

Leverage Ratio

Debt Equity Ratio

0.694 0.493

Activity Turnover Ratio

Total Asset Turnover Ratio

7.28 times Times

Fixed Asset Turnover Ratio

22.55 times Times

Current Asset Turnover Ratio

10.75 times Times

Profitability Ratio

Gross Profit Ratio

7.5% 8.8%

Net profit Ratio

0.796% 1.985%



DATA ANALYSIS AND

INTERPRETATION



DATA ANALYSIS AND INTERPRETATION

TABLE1: The table indicates the basic qualities necessary for channel members of

nandini liquid milk for efficient distribution.

Particulars Responds

Timely delivery of milk 11

Efficiency of channel members 06

Negotiation techniques of channel members 04

All the above 29

Total 50

GRAPH1: The graph shows the basic qualities which are necessary for channel members of MANMUL to distribute Nandini milk to different channels.

Responds

Time sense

Efficiency

Negotiation techniques

All the above

Primary Source

INFERENCE: Majority of the respondents (58%) were says all the channel members should have time sense, efficiency and negotiation technique together. 22% of the respondents are says time sense is essential. Some (12%) of the respondents suggest efficiency is needed. Only 8% of the respondents are says to have negotiation technique.



TABLE 2: the table indicates the regular industrial customers of MANMUL’s milk products

Options Respondents

Hospital industries 15

Educational institutions 10

Hotels customers 18

Banks institutions 07

Total 50

GRAPH 2: The below graph gives information about regular industrial customers for Nandini liquid milk in MANMUL.

Hospitals Education institutions

Hotels Banks 02468

1012141618

Respondents

Respondents

Primary Source

INFERENCE: According to respondents, Hotels are the most (36%) regular customers for

Nandini milk, next to Hotels, Hospitals (30%), Education institutions are third impartant (20%)

regular customers and banks are least(14%) took last place.



TABLE 3: The table indicates who are all the channel member’s responsible for timely

delivery of milk to lower channels.

options Respondents

Channel members 08

Delivery vehicle 23

Both A and B 14

Total 50

GRAPH 3: The graph gives the representation of channel member’s responsibility in case of

timely delivery to lower channels.

Agents

Delivery vehicle

Both A and B

0 5 10 15 20 25

Respondents

Respondents

Primary Source

INFERENCE: According to respondents, the time management, when distribute milk is mainly

depends on delivery vehicles. 46% of the respondents were agreed this. 28% of respondents says it

is depends on both agents and delivery vehicles. And only 16% of the respondents says, it is

depends on agents.



TABLE 4: This table indicates the selection basis of agents with respect to capacity and

layout destination.

Options Respondents

Capacity of the agents 17

Layout destination 11

Both A and B 22

Total 50

GRAPH 4: The below graph shows the basis of selection pattern of agents in MANMUL with

respect to capacity and layout destination.

Respondents

CapacityLayoutBoth A and B

Primary Source

INFERENCE: Majority (44%) of the respondents were interested to select agents on the basis

of capacity and layout. 34% of the respondents were interested to select on the basis of capacity.

And only least (22%) of the respondents are interested to select on the basis of layout.



TABLE 5: The table indicates the basis of segmentation while designing the sales territories

of MANMUL.

Options Respondents

Geographical basis 33

Sociocultural basis 08

Economic basis 06

Demographic basis 03

Total 50

GRAPH 5: This gives the graphical representation of basis of designing the sales territories to segment market area.

Geographical basis

Socioculture basis

Economic basis

Demographic basis

0

5

10

15

20

25

30

35

Respondents

Respondents

Primary Source

INFERENCE: A good majority of the respondents(66%) were says, it’s better to design sales

territories on the basis of geographical area. 16% of the respondents were interested to design on

the basis of Socioculture basis. 12% of the respondents say, economic basis is suitable. And only

least least number (6%) is interested in demographic basis.



TABLE 6: The table indicates the factors which influences Effective sales distribution of

Nandini milk with respect to quality, price and availability of milk.

Options Respondents

Quality of milk 09

Price of milk 12

Availability of milk 06

All the above 23

Total 50

GRAPH 6: This gives the graphical representation on the factors which influences effective distribution of milk products with respect to quality, price and availability of milk.

Quality Price Availability All the above0

5

10

15

20

25

Respondents

Respondents

Primary Source

INFERENCE: Majority of the respondents(46%) are says, effective sales distribution depends

on quality, price and availability all together. 18% of the respondents are says its depends on

quality, 24% says its depends on price. And least number(12%) of respondents are says its depends

on availability.



TABLE 7: The table gives information about training programs adopted by MANMUL to

train channel members in order to increase sales and distribution.

Options Respondents

On job training 36

Self study system 09

Presentation 05

Total 50

GRAPH 7: The below graph gives information about different training programs adopted by MANMUL to train channel members to increase sales.

Respondents

On job trainingSelf study systempresentation

INFERENCE: A good majority (72%) of the respondents are interested in on-job training.

Some (18%) are interested in self study system and only few (10%) are interested in presentation.



TABLE 8: The table indicates the motivational tools adopted by MANMUL to motivate

channel members with respect to salary, bonus, awards and rewards.

Options Respondent

Salary 05

Incentives 31

Awards and rewards 06

Bonus 08

Total 50

GRAPH 8: The graph shows the motivational tools adopted by MANMUL to motivate channel members with respect to salary, bonus, awards and rewards.

Salary

Incentives

Awards and rewards

Bonus

0 5 10 15 20 25 30 35

Respondent

Respondent

Primary Source

INFERENCE: Most of the respondents suggest to give more incentives to channel members to

increase sales. And some are interested in bonus. Some are in awards and rewards and few are

suggest giving salary.



TABLE 9: The below table indicates which distribution method of nandini milk in

MANMUL is easy and earn profit.

Options Respondents

Direct distribution to industrial customers 10

Distributions through agents 37

Direct distribution to customers 03

Total 50

GRAPH 9: The graph gives the typical information about the different distribution methods of

MANMUL.

025

Respondents

Respondents

Primary Source

INFERENCE: A good majority (74%) of the respondents was interested in direct distribution

to industrial customers. 20% of the respondents were interested in distribution through agents and

only 6% were interested in direct distribution to customers.



TABLE 10: The table indicates the qualities which are essentially required for channel

members OF MANMUL.

Options Respondents

Marketing management education 04

Sales skills 09

Sales experience 11

All the above 26

Total 50

GRAPH 10: the graph shows what are all the qualities required for channel members of

MANMUL.

Marketing management education

Sales skills

Sales experience

All the above

0 5 10 15 20 25 30

Respondents

Respondents

Primary Source

INFERENCE: a good majority of the respondents(52%) are says, all the channel members

should have sales experience, sales skills and management education together. 22% of the

respondents are interested to have sales experience. And 18% of the respondents were interested to

have sales skills and very few members are respondents (8%) are says channel members should

have management education.



TABLE 11: The table indicates the opinion of respondents about the statement,” taking

and considering the special orders is advantage for MANMUL”.

Options Respondents

Yes 50

No 0

Total 50

GRAPH 11: The graph shows the respondents opinion about the statement” taking and considering special orders is advantage for MANMUL.”

Yes No

05

101520253035404550

Respondents

Respondents

INFERENCE: all the respondents says taking and considering the special orders is advantage for MANMUL.



TABLE 12: The table explains the satisfaction opinion of channel members about their

service to both MANMUL and customers.

Options Respondents

Highly satisfied 40

Satisfied 10

Not satisfied 0

Total 50

GRAPH 12: The graph indicates the satisfaction opinion of channel members about their service to both MANMUL and customers.

Highly satisfied

Satisfied

Not satisfied

0 5 10 15 20 25 30 35 40

Respondents

Respondents

Primary Source

INFERENCE: Almost all the channel members are highly satisfied with their service. And few are satisfied.



Findings 1. Majority of the respondents specially agents are uneducated, they were not even completes

SSLC.

2. Industrial customers are regular & potential customers to MANMUL and from these MAN-

MUL earn more profit.

3. Majority of the respondents are says that timely delivery, efficiency & negotiation tech-

nique are essentially required for channel members to serve efficiently and effectively.

4. Most of the respondents are says that time management when deliver milk is mainly de-

pends on both agents & delivery vehicles while distribute milk to different channels.

5. Most of the respondents (72%) are suggest Adopting on the job training method, 18% of

the respondents are interested in self-study system & only 10% are says presentation is bet-

ter.

6. Most of the respondents are interested in direct distribution to industrial customers, some

are interested in distribution through agents & least number of respondents are interested in

direct distribution to customers.

7. MANMUL has disciplined friendly and supportive working environment among employees

and labors, leads to effective distribution.

8. Channel members are highly satisfied themselves about their service.

9. Agents are selected on the basis of both financial capacity & layout destination.

10. According to respondents, all the channel members essentially need some knowledge and

training programs to improve their knowledge about their service.



SUGGESTIONS

Based on the findings, the following suggestions are suggested to MANMUL to

improve themselves in MANMUL..

1. MANMUL should also consider the education qualification while selecting agents and other

channel members to improve them.

2. To motivate agents awards, bonus and other offers should be provided along with incentives.

3. Segmentation is made on the basis of geographical basis to increase the sales of Nandini liquid

milk

4. Channel members of MANMUL need more training programs especially on the job training.

5. MANMUL should strictly restrict the parlors and agents to not sell any other products except

MANMUL products.

6. To motivate channel members, along with the incentives, promotion system adopting is better

technique which influences MANMUL to increase profit and also it increases channel mem-

bers efficiency and their satisfaction.



OBSERVATIONS



6. OBSERVATIONS ON DIFFERENT DEPARTMENTS DURING PROJECT PERIOD IN MANMUL ORGANISATION

The MANMUL which started in 1988 as a district milk union of Mandya District, today it is on

the way to achieving its aimed objectives of serving its Milk producers and customers.

HR department: In that department I observed that, this department deals with the employees

career planning, award, technical matter, VRS ,terminal benefits, PF etc.., all the people who work

under this department are very friendly.

Finance department: Here all the workers are busy with their work as its function deals with

financial matters. I observed that it as the sub division function like raising of funds, allocation of

funds, maintenance of records ,cost and management account.

Production department: Here I learnt what are the responsibilities and duties of plant manager.

Who is the responsible for the entire functioning of the plant and who ensures the efficient

utilization of three M’s.

Marketing department: I observed marketing department is well established with sufficient space

to perform marketing activities, such as.

Selling and distribution of products.

Maintaining records for all transactions to evaluate the performance of past records.

They call the meeting of retailers and distributors when it’s required to discuss with them.

They maintaining track records of products are also helpful in evaluating sales of present

and past periods.

The department is having a practice of participate in other product exhibitions.

MIS department: Here the manager of Management information system controls this department.

This department plays a vital role in collecting, storing and disseminating of required data in

organization. Because of All the departments are busy with their work.



Purchase department: While the training time I observed the procedure of purchase department.

Here I mention those procedures.

The purchasing procedure of Purchase department

The need for purchase (when need arise to purchase material).

Requisition for purchase (by respective department).

Calling tender for particular material (from respective material suppliers).

Receiving quotation price list (from suppliers who ready to supply).

Analyzing quotation price lists and placing order with suppliers who found well (well in

terms of high quality and low price)

Receiving ordered materials (from selected suppliers).

Payment of amount bill through finance department (to respective suppliers).

R&D department: In this department I learnt that, this department strives to develop new

innovative ways of producing the products for cost efficiency and to invent new flavor products

satisfy the changing taste of customers.

Totally I gained the different experience with different people in different departments. These are

all the things which made me to learn some knowledge about work and work life. Firstly, I got to

know that personal relation starts long with the professional’s relationship.



LEARNING EXPERIENCE

Learning is a continuous process by which we acquire the knowledge that we apply

to our future Endeavour.

The university has given me an opportunity to learn many aspects pertaining to the

working of the organization. The objective of the project is to study the distribution

strategies of MANMUL products and services. Along with this objective, to study the

structure, style, system, skills, strategy, staff, shared values and functioning of various dept.

a theoretical study of management practices will not offer a useful insight if not

supplemented by a practical exposure.

The project work at MANMUL exposed me to the management practices. The

strategies studied in theory in a controlled environment will fail to deliver on the actual

business scenario. Hence, this study taught me that firms have to thrive in harsh market

realities and even the best of the strategies may be ineffective.

It was an enriching experience to work in MANMUL, it give me a good exposure

where I acquired the practical knowledge about the overall functioning of the organization.

The project work has given me an opportunity to study the marketing strategy and also

make me a ready to face different situations which an individual would normally come

across during the work life. The project mainly provided an opportunity to know

distribution methods and strategies of organization. The project provided an opportunity to

relate theoretical aspects in working environment concepts such as delegation of authority,

reporting, services….etc

Different objectives of MANMUL and distribution strategy were helpful to me to

know the levels of distribution channel. To understanding different methods of distribution

of Nandini milk. This project gives a great tribute to me. Other than this, this project



helpful me to study the comprehensive picture of marketing strategies taken by MANMUL

and other strategies. The disciplined friendly and supportive working environment leads to

effective distribution and sales. All the employees and channel members works in a highly

disciplined atmosphere.

To conclude, this study gave me practical insights to the working of an

understanding and supplementing my theoretical learning. Iam in a better position to

understand, comprehend the problems faced by organization and to work under competitive

environment. The project has helped me to acquire skills required to be competitive in near

future.



CONCLUSION

1. The study says that the most of the channel members are satisfied themselves about

their service to both MANMUL and customers.

2. The study says that its benefit to MANMUL, if it is improves direct distribution to in-

dustrial customers.

3. On-the job training is required for all the channel members to train them to improve

their knowledge.

4. MANMUL should also concentrate on internet marketing and e procurement to im-

prove sales and distribution.

5. It’s better to adopt more motivational tools to motivate channel members to increase

their efficiency in sales and distribution.



QUESTIONNAIRE

Declaration

“Iam somashekara K.S. studying 2nd year MBA in PES col-

lege of engineering, Mandya. Iam conducting a survey

for distribution strategy of nandini milk for the purpose

of my project work. Please fill this questionnaire with re-

spect to your service about MANMUL.

Date:

Place

Signature

NAME : ……………………………………………

ADDRESS :

……………………………………………

…………………………………………….

…………………………………………….

…………………………………………….



EDUCATIONAL QUALIFICATION:

a. PG b. UG c. PUC D. SSLC

AGE GROUP:

Bet 20-30

Bet 30-40

Bet 40-50

Above 50

1. Which of the following institutions is most regular industrial customers for Nandini milk?

a. Hospitals customers’ b. Hotels

c. Educational institutions d. Banks

2. Which of the following qualities should essentially required for distribution members of

Nandini liquid milk?

a. Time delivery b. Efficiency

c. Negotiation technique d. All the above

3. According to you, the time management, When distribute milk to parlors and customer is

mainly depends on

a. Agents b. Delivery vehicles c. Both a & b



4. according to you, its better that, Agents are selected on the basis of

a. Capacity b. Layout c. Both a &b

5. Sales territories are designed on the basis of

a. Demographic basis b. Geographic basis

c. sociocultural basis d. economic basis

6. Effective sales distribution of Nandini milk is influenced by

a. Quality b. Price

c. Availability d. All the above

7. Which of the following Training method is adopted is better to train channel to train the channel

members of MANMUL?

a. On the job Training b. Self-study system

c. Product demonstration

8. Which of the following option is suitable, In order to increase the sales of Nandini milk to

motivate channel members?

a. Salary b. Incentives

C. Awards & Rewards d. Bonus

9. Which of the following method of distribution is easy and earn Profit for MANMUL?

a. Direct Distribution to industrial customers

b. Distribution through agents

c. Direct distribution to customers



10. Which of the following qualities should have all distribution members?

a. Marketing management education

b. Sales skills

c. sales experience

d. All the above

11. "Taking and considering the orders of special functions like marriage and other events is

advantage for MANMUL" would you like this?

A. yes B. no

12. Are you satisfied with overall performance of all employees and workers of MANMUL?

a. highly satisfied b. satisfied c. not satisfied



BIBILOGRAPHY

BOOKS:

1. MARKETING MANAGEMENT BY PHILLIP KOTLER(11TH EDITION)

2. INDUSTRIAL MARKETING

3. SALES MANAGEMENT by Toppan Panda

JOURNALS:

1. ANNUAL REPORTS OF MANMUL 2010-11

2. BUSINESS LINE

3. MAGAZINES…….etc

4. COMPANY PROFILE 2010-11

WEBSITES:

1. www.Indiandairy.com

2. www.google.com

3. www.nandinimilk.com

4. www.nandiniproducts.coop


http://www.nandiniproducts.coop/

http://www.nandinimilk.com/

http://www.google.com/

http://www.Indiandairy.com/

Soma 1

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Transcript of Soma 1