A STUDY ON CONSUMER BEHAVIOUR AND SALES PROMOTION STRATEGY

Undergone at AAVIN DAIRY ERODE

Submitted In Partial Fulfilment Of The Requirement For The Award of the Degree Of MASTER OF BUSINESS ADMINISTRATION By
VIJAYAKUMAR.R (35080692)

Under The Guidance of Mr.K.SANKARAMOORTHY

Department of Business Administration S.R.M. UNIVERSITY Kancheepuram-603203. MAY 2010

BONAFIDE CERTIFICATE

S.R.M SCHOOL OF MANAGEMENT

This is to certify that the bonafide project work submitted by VIJAYAKUMAR.R (35080692) student of final year MASTER OF BUSINESS ADMINISTRATION for the fulfilment of the degree course as per the curriculum of SRM SCHOOL OF MANAGEMENT during the year 2008-2010.

The report submitted for the viva voice held on __________________

Signature of the student

Signature of the Guide

Signature of the DEAN

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ABSTRACT

This study titled A STUDY ON CONSUMER BEHAVIOUR AND SALES PROMOTION STRATEGY OF AAVIN MILK PRODUCTS This study was helps to evaluate the performance of the employees after the training at Aavin milk products, Erode. The main objective of the study is to study the consumer behavior of aavin milk and milk products in erode town The sampling size was 320. The tool used for the conduct of the study has been a Structured Questionnaire and Simple Percentage Method and Chi-Square Test. The main functions of the dairy development department are organization of societies, registration of societies, supervision and control of primary milk cooperative, district cooperative milk producers union and Tamilnadu Cooperative Milk Producers Federation. Diary development in India has been acknowledged the world over as one of the most successful development program. India is the second largest milk producing country with anticipated production about 78 million tons during past ten years. It was concluded that Most of the consumers were interested to buy aavin milk products. They felt that the price of aavin milk products is comparatively low and good quality.The research analyst felt that the advertising programmes create awareness and bring loyalty among consumers.

DECLARATION

I VIJAYAKUMAR.R,(35080692) a bonafide student of SRM School of Management, SRM University, Kattankulathur, hereby declare that the project entitled A STUDY ON CONSUMER BEHAVIOUR AND SALES
PROMOTION STRATEGY OF AAVIN MILK PRODUCTS submitted in

partial fulfilment for the award of the degree of Master of Business Administration is my original work.

Place: Date:

SIGNATURE

(VIJAYAKUMAR.R)

ACKNOWLEDGEMENT

I offer my sincere thanks to Dr. (Mrs.) JAYASHREE SURESH, Dean, SRM UNIVERSITY Kattankulathur-603203 for giving us an opportunity to undergo a Project in A STUDY ON CONSUMER BEHAVIOUR AND SALES

PROMOTION STRATEGY OF AAVIN MILK PRODUCTS. I express my gratitude to Mr.K.SANKARAMOORTHY, Assistant Professor, and Department of Business Administration for his valuable guidance, which helped me in preparing this report. I extend my gratitude to Mr. ELUMALAI.P, Assistant Manager, for his valuable guidance, which helped me in doing this project. I am thankful to the administration and faculty of SRM UNIVERSITY, for having required this Project from us, as it has provided an invaluable experience to us. I also thank my friends who were a moral support for us from the very beginning of the project in all circumstances. Last but not the least; I thank the Almighty for the successful completion of this project.

TABLE OF CONTENT
CHAPTERS CHAPTER-1 1.1. 1.2. 1.3. 1.4. CHAPTER-2 2.1. 2.2. 2.3. 2.4. CHAPTER-3 3.1. 3.2. 3.3. CHAPTER-4 CHAPTER-5 4.1. 5.1. 5.2. CONTENT INTRODUCTION STATEMENT OF THE PROBLEM OBJECTIVES OF THE STUDY METHODOLOGY OF THE STUDY REVIEW OF LITERATURE SCOPE OF THE STUDY LIMITATIONS OF THE STUDY COMPANY PROFILE ANALYSIS AND INTERPRETATION FINDINGS SUGGESTIONS CONCLUSION APPENDICES BIBLIOGRAPHY PAGE NO 1 2 2 3 10 14 15 15 47 62 63 64 65 68

LIST OF TABLES
TABLE TITLE PAGE

4.1 4.2 4.3 4.4 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13

Production of products (costs) Types of Milk Types of Milk sold Monthly Sales Percentage of Respondents buy aavin Percentage prefer aavin milk products Reasons for purchase of aavin Response regarding price Response regarding quality Awareness regarding ISI & AGMARK Response regarding aavin ads Response regarding non favor Response regarding availability Response regarding purchase quantity Consumer behaviour Response regarding erode aavin stall Response of train travellers
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36 36 39 42 48 49 51 52 53 54 55 56 56 57 59 60 60

LIST OF CHARTS
TABLE 3.1 3.2 3.3 3.4 3.5 3.6 4.1 4.2 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 TITLE Structure Of Diary Organization Chart Flowchart in batch method Flowchart for processed milk Flowchart for reception Pasteurization Production of products Marketing section Percentage of respondents Percentage prefer aavin milk products Reasons for purchase of aavin Response regarding price Response regarding quality Awareness regarding ISI & AGMARK Response regarding aavin ads. Response regarding non favor Response regarding availability Response regarding purchase quantity Consumer behaviour Response regarding erode aavin stall Response of train travellers PAGE 20 21 24 25 27 28 36 40 48 49 50 51 52 53 54 55 56 57 58 59 60

I. INTRODUCTION
This is an overall study of the organization of AAVIN Milk Products in Erode Town where its working environment and various policies and practices are studied The state diary development department was established in 1958. The administrative and statutory controls over the entire milk cooperative in the state were transferred to the diary development department on 01.08.1965. The commissioner for the milk production and diary development was made at the functional registrar under the Tamilnadu cooperative societies act. The main functions of the dairy development department are organization of societies, registration of societies, supervision and control of primary milk cooperative, district cooperative milk producers union and Tamilnadu Cooperative Milk Producers Federation. Diary development in India has been acknowledged the world over as one of the most successful development program. India is the second largest milk producing country with anticipated production about 78 million tons during past ten years.The milk surplus states in India are UttarPradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharastra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus states. The diary development department exercise statutory functions like inquiry, inspection, surcharge and super session, appointment of Special Officers, liquidation and winding up of dormant societies etc.The Commissioner for Milk Production and Dairy Development, Deputy Milk Commissioner (Co-operative) and Circle Deputy Registrars are vested with quasi-judicial power in respect of settlement of dispute, appeal, revision and review under various provisions of Tamilnadu Co-operative. In particular, in the innovative and revolutionary high-tech industry, manufacturers in order to achieve the desired sales revenues cannot ignore the need to continuously promote activities aimed to both update dealers satisfaction.

STATEMENT OF THE PROBLEM

1)So far the knowledge about the Aavin company and its products are not known to most of the retailers and consumers. 2) To detect the shortcomings in the distribution channel.

OBJECTIVE OF THE STUDY

1) The main objective of the study is to study the consumer behavior of aavin milk and milk products in erode town 2) To study about the marketing strategies and its effects 3) To acquire an understanding of the techniques required to plan retailing. 4) Assure a remunerative price of the milk produced by the milk producers societies through a stable, steady and well market support. 5) Distribution of quality milk and milk products at reasonable price to the consumers.

METHODOLOGY OF THE STUDY

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RESEARCH DESIGN: AN OVERVIEW Research design is the plan and structure of investigation so conceived as to obtain answers to research questions.The plan is the overall scheme or program of the research.It includes an outline of what the investigator will do from writing hypotheses and their operational implications to the final analysis of data. SAMPLE DESIGN What is a good sample? The ultimate test of a sample design is how it represents the characteristics of the population it purports to represent.In measurement terms,the sample must be valid.Validity of a sample depends on two considerations:accuracy and precision. SAMPLING FRAME The sampling frame is closely related to the population.It is the list of elements from which the sample is actually drawn.Ideally,it is a complete and correct list of population members only. DATA COLLECTION METHOD The gathering of data may range from a single observation at one location to a grandiose survey of multinational corporations at sites in different parts of the world.The method selected will largely determine how the data are collected. Questionnaires,observational forms,laboratory notes, and instrument calibration logs are among the devices used to record raw data. The data for the project, which is about retailer satisfaction in sales of AAVIN products was obtained from primary and secondary sources of data. 1) Primary Data 2) Secondary Data 1)Primary Data: 11

The primary data is collected trough questionnaires prepared for this purpose from the retailer. These retailers are selected by simple random technique and primary data is collected through personal discussion. Sample size: The size of the sample is 100 respondents from the AAVIN retailer pool and the data is collected from them. 2)Secondary data: The secondary data is collected from the different materials published by AAVIN and from newspapers, magazines and from AAVIN website. www.aavin.com . The data so collected has been tabulated and interpreted with the help of percentages, Bar-diagrams and Pie charts, Chi Square Test. These are used as statistical tools for representing the scenario of study. Data has been analyzed relating to the retailer satisfaction in sales of AAVIN products. SIMPLE AVERAGE = Pilot Survey: A pilot survey with 20 samples from employees was conducted for testing the validity of the questions. It was found that there was no need for changes in the questionnaire and the same questionnaire was used for final survey. No. Of Respondents Total No. Of Respondents

Sampling tools used for this study are, - Simple Average - Chi-Square - Weighted average Chi-square test: 12

A chi-square test (also chi-squared or

2 test)

is any statistical hypothesis test in

which the sampling distribution of the test statistic is a chi-square distribution when the null hypothesis is true, or any in which this is asymptotically true, meaning that the sampling distribution (if the null hypothesis is true) can be made to approximate a chi-square distribution as closely as desired by making the sample size large enough. It should be noted that the degrees of freedom are not based on the number of observations as with a Student's t or F-distribution. For example, if testing for a fair, sixsided die, there would be five degrees of freedom because there are six categories/parameters (each number). The number of times the die is rolled will have absolutely no effect on the number of degrees of freedom. Calculating the test-statistic The value of the test-statistic is where

X2 = the test statistic that asymptotically approaches a 2 distribution. Oi = an observed frequency; Ei = an expected (theoretical) frequency, asserted by the null hypothesis; n = the number of possible outcomes of each event.

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The chi-square statistic can then be used to calculate a p-value by comparing the value of the statistic to a chi-square distribution. The number of degrees of freedom is equal to the number of cells n, minus the reduction in degrees of freedom, p. The result about the number of degrees of freedom is valid when the original data was multinomial and hence the estimated parameters are efficient for minimizing the chi-square statistic. More generally however, when maximum likelihood estimation does not coincide with minimum chi-square estimation, the distribution will lie somewhere between a chisquare distribution with (n 1 p) and (n 1) degrees of freedom (See for instance Chernoff and Lehmann 1954). HYPOTHESIS TESTING Definition of Hypothesis Some information regarding the characteristics or feature of the population may be

available to us and we want to know whether the information is tenable in the light of sample taken. If the population parameter can be accepted with what degree of be done, this type problem is called testing of hypothesis. Null Hypothesis A hypothesis, which assume that there is no significant difference between statistics and population parameter is called null Alternative Hypothesis A hypothesis is different from the null hypothesis is called alternative hypothesis. It is denoted by H1. 14 sample confidence it can

hypothesis and it is denoted by Ho.

ANALYSIS TOOLS
TESTING OF HYPOTHESIS:
Chi- Square test;Null Hypothesis (Ho) : - There is no relationship between dealership period and factor to be a dealer. Alternative Hypothesis (H1) : - There is a relationship between dealership period and factor to be a dealer. TABLE 4.2.1
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 6.242 a 8.808 .247 100 df 9 9 1 Asymp. Sig. (2-sided) .716 .455 .620

Since the P value is greater than 0.05 accepting Ho INFERENCE: The calculated chi-square value is 6.242a and the corresponding p value is .716 which is grater than 0.05 hence reject H0 i.e., there is an association with the dealership period and factor to be a dealer.

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4.3. WEIGHTED AVERAGE METHOD:

Weighted Average ( Xw) = w1x1 + w2x2+wnxn

w
TABLE SHOWING RETAILERS VIEW ON PRICE COMPARISION OF AAVIN WEIGHTED AVERAGE: Table : 23 Weight (w) 5 (V.G) 4 (Good) 3 (Satisfactory) 2 (poor) 1 (V.P) Frequency (x) 36 49 15 0 0 ( Xw) = w1x1 + w2x2+wnxn wx 180 196 45 0 0

w
= 421/15 Xw = 28.06

Inference:

From the weighted average it is inferred that, weighed average is 28.06. The maximum respondents said its good and very good, 196 & 180 respectively. So there is no need for AAVIN to work in their current pricing pattern. TABLE SHOWING RETAILERS VIEW ON PROMOTION ACTIVIY OF AAVIN WEIGHTED AVERAGE: Table:24 WEIGHT (W) 5 (V.G) 4 (Good) 3 (Satisfactory) 2 (poor) 1 (V.P) FREQUENCY (X) 9 19 43 21 8 WX 45 76 129 42 8

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( Xw) = w1x1 + w2x2+wnxn

w
Xw Inference: From the weighted average it is inferred that, weighted average is 20. Therefore the respondents prefer all the criteria evenly with satisfactory being the highest 129 respectively. So AAVIN could work on this factor to make all the retailers satisfied. TABLE SHOWING RETAILERS VIEW ON REGULAR SUPPLY OF GOODS OF AAVIN WEIGHTED AVERAGE: Table : 25 WEIGHT (W) 5 (V.G) 4 (Good) 3 (Satisfactory) 2 (poor) 1 (V.P) FREQUENCY (X) 8 23 42 19 8 ( Xw) = w1x1 + w2x2+wnxn WX 40 92 126 38 8 = 300/15 = 20

w
Xw Inference: From the weighted average it is inferred that, weighted average is 20.26. Therefore the respondents prefer all the criteria evenly with satisfactory being the highest. = 304/25 = 20.26

So AAVIN could work in their current supply chain and improve the effectiveness of
the system.

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REVIEW OF LITERATURE
This literature is based on the study done by SOUMAVA BA NDYOPADHYAY (Department of Management and Marketing, Lamar University) & ROBERT A. RO BI CHEAUX (Department of Management and Marketing, University of Alabama) on A Cross cultural study on influencing strategies in marketing channel. Marketing channel organizations use many different types of tactics of influence to get their way with other channel organizations (Wilkinson and Kipnis, 1978). When used on a long-term basis to achieve strategic business objectives of coordinating and controlling marketing activities within a distribution system (Stern and El-Ansary, 1992), these tactics become influence strategies which form part and parcel of way of conducting business. Use of an influence strategy by a source towards a target is a demonstration of the former applying its power over the latter (Frazier, 1984). Hence, influence strategies have also been referred to as exercised power sources (Gaski, 1986). The exercise of the sources of power available to it leads a channel member organization to communicate with other channel members in the form of influence strategies. The most widely used taxonomy of in term influence strategies in marketing channels was proposed by Frazier and Summers (1984) based on the concept of exercised power sources described above. Six different influence strategies are identified, of which two seek to alter the targets perception in such a way that the target will see that the behaviour desired by the source of influence is really beneficial to it. Influence strategies based on altering a targets perception is indirect. The other four strategies involve attempts to influence a targets behaviour while giving minimal importance to altering perceptions. These are direct strategies. The six influence strategies are described below.

INDIRECT INFLUENCE STRATEGIES: (1) Information exchange- The source discusses general business and operating procedures to try to alter the targets general perceptions of behaviour that would be in its best interest. The source does not request or otherwise indicate any specification by the target. The source hopes for desirable behaviour from the target based mainly on its referent and expert power. 18

(2) Recommendation- The source expresses the need for altered behaviour by the target for the latter to maintain or increase desired outcomes (e.g. sales). The basis for the sources expectation of altered behaviour from the target is again its referent and expert power.

DIRECT INFLUENCE STRATEGIES: (1) Request- The source simply asks the favour of the target to perform a certain task without implying any subsequent sanctions, positive or negative, for complying or not complying, respectively. Here, the source once again makes use of its referent and expert power, somewhat more explicitly compared to the two indirect influences. (2) Promise- In using this strategy, the source offers a specified reward to the target (e.g. granting of wider margins and promotional allowances) if the latter complies with the sources stated desires. (3) Threat- The source informs the target that the failure to comply with its demands will result in negative sanctions. These may be either the loss of something desirable (e.g. withdrawal of incentives) or the receipt of something undesirable (e.g. delayed deliveries or termination of contract). (4) Legal plea- In this strategy, the source expresses that the legal contract between the two parties requires the target to perform the action sought by the source. The use of the legal plea strategy is based on the source possession of legitimate power.

Present work: Producers and process involved in Erode Dairy products The numbers of producers that are made in dairy depend up on the demand and supply of milk the region. Milk products such as butter an densed milk, powdered milk, baby food, ice cream and cheese. The processes involved are used in Erode daily are obtained below process. 19

MILK RECEIVING SECTION

The milk cans are unloaded are the receiving station and emptied into a receiving tank after testing for fitness are freshness. The milk from each can in weighted and conveyed to the pasteurization and other units.
PASTEURIZATION

It is the heat treatment of milk for the purpose of killing inactivating diseases causing organisms. It is accomplished heating either 62C for 30 minutes or at 71C for 15 seconds
CHEESE MAKING

Cheese is made from milk in which fact to protein ration has been suitably adjusted. A culture if bacteria called Starter is added to induced the information of lactic acid.

BUTTER, BUTTER MILK, SKIM MILK

Milk is passed through centrifugal machines to separate cream and skim milk, cream is then churned either as such or after ripening with or without culture until butter separates from the liquid and butter milk is left over.
GHEE

It is a vary commonly used daily in India is made from ram / butter obtained from fresh or 50ltr. Milk
BABY FOODS

The baby food is prepared either by spray drying or roller drying of the milk of cow or buffalo.

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POWDERED MILK

Milk is dried in spray drier or roller drier to manufacture powdered milk

OTHER PRODUCTS

In some other Dairies an increasing range of products have been made milk. These products include lactic acid, calcium lactic acid, calcium lactate and a bumin. In Erode dairy sugar milk is prepared.

OVERVIEW OF AAVIN DAIRY

Erode district co operative society was started jointly by milk producers and the state Government. This as started for the benefit of the milk producers. This society covers vast area all over Erode District. They produce milk all over Tamil Nadu and also from other states for the production process.

The Tamilnadu Co operative Milk Producers Federation Limited Chennai Other Direct Union Co operative Milk The Erode District Producers union Ltd Primary Societies Primary Societies Primary Societies Primary Societies Primary Societies 21 Other District Unions

ORIGIN

The Co operatives society was started on 25th September 1973 by the milk producers. This society was registered on 7th February 1975 and named Periyar district Co operative milk products union Limited. But this is functioning from 1st July 1976 and renamed an erode district Co-operative milk products union limited. We call this shorting as Aavin. It is situated in Chithode.
SCOPE OF DAIRY BUSINESS

The primary District Co operative milk union is the middle of the three tier structure with its 646 primary Co operative at the base the Tamilnadu milk producers federation limited as the apex body.
AUTOMATIC GHEE FILLING

A new fully automatic ghee machine has been installed to pack to 5mt of ghee every day. The cost of the machine is Rs. 9.29 lakhs and is the first of its kind in Tamilnadu

SCOPE OF THE STUDY

It helps to understand the satisfaction level of retailer in selling the products. It gives valuable suggestions to improve the sales of the product. It helps to find the new strategies for increase the current market share. It helps to find whether the distribution system is a perfect one. The study will enable the organization to increase the sales of the aavin milk and milk products and strengthen the sales promotion strategies.

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LIMITATION OF THE STUDY

1) The scope of the study is restricted to Erode and its surroundings only. 2) Time constraint and resource constraint. In view of this fact the results of the present study holds good for the market of Erode only. 3) Another possible limitation of the present study is that the sample being too small, the results as it provides might at best be signals rather than precise conclusions. 4) The analysis and findings are recommended only from the primary data of 100 persons so it is not that much accurate, but we can find out the mentality of the retailers in general.

COMPANY PROFILE (DAIRY SECTOR)

Diary development in India has been acknowledged the world over as one of the most successful development program. India is the second largest milk producing country with anticipated production about 78 million tons during 1999-2000 The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharastra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus states. Dairy sector has assumed a great significance by generating income not only to the rural but also to the urban and semi- urban population in the state especially to the women folk by providing self employment opportunity. Milk and milk products provides essential 23

nutrition to all walks of life. It provides the main source of income next to agriculture. In a tropical industry like India, agriculture may fail sometimes, due to monsoon failure but dairying never fail and gives them regular, steady income. The state diary development department was established in 1958. The administrative and statutory controls over the entire milk cooperative in the state were transferred to the diary development department on 01.08.1965. The commissioner for the milk production and diary development was made at the functional registrar under the Tamilnadu cooperative societies act. With the advent of Anand Pattern in Tamilnadu, Tamilnadu Co-operative Milk Producers Federation Limited was registered on 1st February 1981. The commercial activities of the department such as procurement, processing, packing and the sale of milk to the corporation ltd. were transferred to the newly registered Tamilnadu Cooperative Milk Producers Federation Ltd. In the wake of the liberalization policy, private diaries have entered in the field of dairying. As per the direction of honorable chief minister of Tamilnadu high priority has been given for improving the performance of co-operatives by adopting a systematic approach and proper strategy implementation in milk co-operatives. Significant achievement has been made by milk producers cooperative societies, unions and federation in the state of Tamilnadu.
TWO FOLD OBJECTIVES OF THE DAIRY DEVELOPMENT DEPARTMENT:

1. Assure a remunerative price of the milk produced by the milk producers societies through a stable, steady and well market support. 2. Distribution of quality milk and milk products at reasonable price to the consumers.

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FUNCTIONS OF THE DAIRY DEVELOPMENT DEPARTMENT

The main functions of the dairy development department are organization of societies, registration of societies, supervision and control of primary milk cooperative, district cooperative milk producers union and Tamilnadu Cooperative Milk Producers Federation. The diary development department exercise statutory functions like inquiry, inspection, surcharge and super session, appointment of Special Officers, liquidation and winding up of dormant societies etc. the Commissioner for Milk Production and Dairy Development, Deputy Milk Commissioner (Co-operative) and Circle Deputy Registrars are vested with quasi-judicial power in respect of settlement of dispute,appeal, revision and under various provisions of Tamilnadu Co-operative societies Act 1983 and rules made there.

The erode district cooperative milk producers registered on 07.02.1975. it started function from 10.07.1976. The area of operation is entire Erode District and it is funded by the national Dairy development board through the Govt of Tamilnadu project has been based on the famous amul or Anand pattorn of Gujarat. This union procures an overage 3 lakhs litres off milk co operative. There is an inbuilt capacity for processing 3.0 lakhs litres per day and about 4 lakhs of milk can be drive in two powder plants having provision to dry in 10mts and 30mts per days respectively 12mts of butter and around 12 mts of ghee can also be produced in this Dairy. Besides milk powder, butter and ghee union also mono factures popular products like milk khol flavored milk, masala buttermilk in sachets and ice cream for local customers. These products have found regular market locally milk powder, butter and ghee from thin union are of the highest quality and is in gard demand in the up country market. The bulk

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marketing of these products is done by the Tamilnadu cooperative milk producers federation at Chennai. Milk is collected from the primary village cooperative societies and is sent to he feeder balancing Dairy. For the societies far away from the Dairy is collected and cholled as the nearest chilling centre and sent to the daily. The three chilling centers are sankaradam palayam, Thavadi and its capacity are 80,000 liters 42,000 liters and 5,000 liters respectively. Dairy organization in Tamilnadu belongs either private / Govt / Semi Govt or Co operative sector. Before the 1970s the organization mostly concentrated an processing and marketing function. Impressed with the immune success of the Anand patten in Gujarat, the Govt of India set up the national Dairy development board to replicate Anand pattern Dairy co operative in country. National Dairy development board (NDDB) provides the technical expertise.

AAVIN DAIRY PROFILE OF THE COMPANY

HISTORY

Date of registration Date of functioning Area of Operation

-07.02.1975 -01.07.1976 -Erode District Sankarandam Palayam., Sathyammangalam and Thallvadi)

Units Under Control -Feeder balancing chithode (attle feed plant, Erode Chilling center at

OVERVIEW OF AAVIN DAIRY

Erode district co operative society was started jointly by milk producers and the state Government. This as started for the benefit of the milk producers. This society covers

26

vast area all over Erode District. They produce milk all over Tamil Nadu and also from other states for the production process.

The Tamilnadu Co operative Milk Producers Federation Limited Chennai Other Direct Union Co operative Milk The Erode District Producers union Ltd Primary Societies Primary Societies Primary Societies Primary Societies Primary Societies Other District Unions

ORIGIN

The Co operatives society was started on 25th September 1973 by the milk producers. This society was registered on 7th February 1975 and named Periyar district Co operative milk products union Limited. But this is functioning from 1st July 1976 and renamed an erode district Co-operative milk products union limited. We call this shorting as Aavin. It is situated in Chithode.

27

SCOPE OF DAIRY BUSINESS

The primary District Co operative milk union is the middle of the three tier structure with its 646 primary Co operative at the base the Tamilnadu milk producers federation limited as the apex body.
AUTOMATIC GHEE FILLING

A new fully automatic ghee machine has been installed to pack to 5mt of ghee every day. The cost of the machine is Rs. 9.29 lakhs and is the first of its kind in Tamilnadu
MILK PRODUCERS CO OPERATIVE SOCIETIES IN TAMILNADU

Through the state of Tamilnadu primary milk producers Co operative societies have been registered by 14 district co operative up to 30th September 1991 of functioning will new butter, ghee, Milk Powder, milk Powder, Milk Cream produced.
3.1 STRUCTURE OF A DAIRY

It has a three tier structure The structure of a dairy Co - operative in our state is 3 tiers

The Tamilnadu Co operative Milk Producers Federation

Direct Co operative Milk Producers Union (At district level)

Primary Milk Producers Co operative Societies (Village Level) 28

3.2 ORGANIZATION CHART Managing Director Chairman General Manager Asst. General Manager Manager Procurement Purchase Production Marketing Accounts

Asst. Manger

Asst. Manger

Asst. Manger

Asst. Manger

Asst. Manger

Supervisor

Employee To Propagate Co operation among its member

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OBJECTIVES OF AAVIN DAIRY To purchase, process, Manufacture, distribute and sell milk to the other communicates of the members of the affiliated societies To purchase, process, manufacture, distribute and sell cattle feed, dairy, machinery, equipment and instruments and packing materials required by Dairy Co operative.

To encourage the groins of green fodder by members of affiliated societies To provide veterinary and artificial in semi nation services, medicine and under take beeding programs for the development of dairy animals.

Organize now milk producers Co operative societies and help the development of affiliated societies to the maximum by giving necessary, technical, administrative, financial and other assistance

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PRODUCTS Butter The plant has a butter producing capacity of 12T a day. Two types of butter are made table or salted and cooking butter (ghee making). Butter is made by two equipments conical butter chum (batch type) and CBM (continuous butter making machine) Conical Butter Chur It has a capacity of 10KL/batch. It has 25HP three phase motor with four gears to very the speed. Cream with 35 40% fat from the silos after 6 Hours of ripening is Pumped. The chum is first in the first gear (30 rpm) for 20 40 min, till the breaking stage is reached. Grain sized butter granules are formed which are then drained of the butter milk. This butter milk with 0.32% fat after testing goes for powder production. After this quantity of pasteurized and chilled water containing 18 20 ppm of chlorine (5c) equal to that of butter milk drained is pumped in. Then the chum is rotated in the second gear for about 10 min (washing). This is done twice. This wash water is then drained and hard butter is formed. This hard is then worked for 10minutes by rotating. In the second gear, till there is no free moisture which should be 16.5 17% less or excess moisture is adjusted by re working. The butter goes to the deep freeze for hardening before packing Butter is packed in parchment paper. It is packed in 100, 200 and 500 gm weights in an automatic machine. 20 kg cartons are filled manually.

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3.3 FLOW CHART IN BATCH METHOD Ageing

Loading of churn cream

Churning

Draining of butter milk

Washing

Pre - working

Unloading of butter

Packing

Storage

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3.4 FLOW CHART FOR PROCESSED MILK Raw mil silo

FBT

Regeneration III (68 C)

Regeneration II

Regeneration III (68C)

Heading section (75C)

Heading Section (20 sec)

Regeneration cooling (14C)

Processed milk silo (5 - 6C)

Chilling section (5C)

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CREAM SEPARATION The process of separating out of cream from milk is known as separation. It is possible because of difference in specific gravity between the fat and the liquid portion or serum of the milk. Centrifugal separation is the most commonly used method in modern dairies SEPARATOR The equipment used for this type of separation is known as centrifugal separator Two discharge outlets, one for skim milk and the other for cream are provided. In operation, milk, fed into the rapidly spinning bowl, at a temperature of 40c distributes itself on the separating discs rotating at high speed, and is thereby subjected to the centrifugal force. The heavier of the two products, namely the skim milk, forms a layer on the inner wall pf the bowl, where as the lighter one i.e fat gathers in the central portion. The incoming milk forces the separating layers up form the bottom and at the top of the bowl. Two passages are provided at the top of the bowl for milk and cream respectively to pas out the bowl. The operating nearest to the centre of the bowl will discharges the ream and other the skim milk. Regulating the flow of the cream discharges opening by adjusting cream value can maintain the separator is around 35C to 45C. considerable fat loss will occur if the milk is cold while being separated. Separator which separate milk at as 71C.

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3.5 Flow Chart for Reception Milk in cans

Convey the milk cans through conveyor

Organoleptic test

Unload the milk in weigh bowl

Dump tank

Can reception pump

Plate chiller

Raw milk silo

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FLUID MILK PROCESSING

MILK CHILLING

Raw milk from dump tank is chilled by using two plate childrens, one for cow milk and other for buffalo milk. Milk entering the chiller is cooled to about 5C by using chilled water 0.5C. Chilled milk is then stored in three raw milk silos, of each of 15,000 liters capacity
MILK PASTEURIZATION

There are three pasteurizers of 10000 Iph capacity. Milk pasteurization involves 4 sections Regeneration Heating Holding Chilling
WHOLE MILK PASTEURIZATION

Milk from the silos is pumped to FBT from where it is pumped at a temperature of 5C to plate heat exchanger. Here incoming milk gets gradually heated with simultaneous cooling of outgoing milk. The heading media used is saturated steam mixed with water. The milk gets heated up to 40 - 50C in the regeneration section I and then passed to regeneration section II and III and heated up to 68C. Then heated milk enters in to the heating section gets heated up to 75C. The heated milk is holded for 20 seconds in the holding section. The heated milk again flow through the regeneration section and get cooled by incoming milk. The temperature is further reduced to 5C or below by using chilled water in the chilling section.

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Regeneration

Cream separator

Cream

Skim milk

Cream pasteurization (85C / 2Sec)

Regeneration II

Regeneration III Cooling Section (40C)

Heating (70C) Chilling Section (4C) Holding

Cream Silos (7 - 10C) Regenerative cooling (14C)

Chilling (5C)

Skim milk silo (5 - 6C) 37

MILK RECEPTION Cow and buffalo are normally milked twice a day once early in the morning and then late in the afternoon. Milk being a perishable commodity should be delivered as soon as possible at the collection centers, chilling centers are daily plant for further handing and processing. Milk is generally brought in producers own utensils at the village level collection centers twice a day. At collection centers this milk is transferred to milk cans and these are then transferred to dairy plant Milk from various societies and chilling centre are brought to the dairy by means of cans and tankers. There are two receptions in the reception dock to collect the cow milk and buffalo milk from various societies in and around erode district. These are nearly 786 societies through 23 routes Milk reception t a dairy plant requires almost attention. Reception procedure should be simple, quick and absolutely trouble free. Perfect cleaning of cans, road or rail milk tanker, proper grading and accurate measurements of milk are very important. Cow Milk received per day - 1.5 lakh liters

Buffalo Milk received per day 0.5 lakh liters

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EDCMPU LTD PRODUCED TYPES OF MILK AND SOME OTHER PRODUCTS

MAIN PRODUCTS (VARIETY OF MILK)

Toned milk Standardised milk Aavin Gold (high Fat milk)

OTHER PRODUCTS

Butter Ghee Skimmed milk Powder Maavin Mango Butter Milk Curd Milk Kova Flourved milk Tetra pack PRODUCTS PROCESS
RECEPTION SECTION

Products is nothing but a process by which the inputs are transferred into output Milk Receiving Smell test Milk Testing Tube test Can Washing Milk Weighting Taking Sample

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ACTIVITES OF THE UNION No. of functional societies Total no. of farmer members a. Women member b. Scheduled caste and Tribes c. Pouring members d. Women members e. Scheduled caste and pouring members No. of milk collection routes Average quality of milk Cow Fat % SNF % 4.4 8.2 Buffalo 7.0 8.8 1016 (upto april 2010) 3,20,098 1,06,46 47,502 48,785 1,06,546 4,327

Procurement price of paid to procedure Buffalo milk per kg Fat Cow milk per Kg Solid Dairy Average procurement in Liters (upto June 2005) No. of mobile veterinary unit No. of cases treated No. of Emergency cases treated Processing capacity in LPD 3,76,539 25,538 2028 Rs. 187.57 Rs. 80.77 Rs. 12.50 / lit Rs.10.50 / lit

Milk payment schedule once in 10 days

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(a) Erode Dairy (b) Chilling centre Bhavani Sankaran Ampalayam Sathyamangalam Handling at present (a) Erode dairy (b) Chilling Centre Bhavani Sankaran Ampalayam Sathyamangalam Production capacity Butter Ghee SMP Milk sent to Chennai in LPD

3,00,000 80,000 50,000 30,000 4,12,970

1,28,970 52,000 46,000 9 MT 6 MT 10 MT 1,09,737

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IV. FUNCTIONAL DEPARTMENTS

A. PURCHASE DEPARTMENT This department is responsible for procurement of material, tools and equipments. The purchase item like polythene film, corrugated boyes, labels, stickers washing soda, caustic soda, slat compressor, milk canes for the purpose of dairy usage.
Deputy manager Assistant Manager Assistant Typist Attendance

Purchase of commodities required is done by to methods 1. annual tenders 2. Quotations Annual tenders made yearly once for high amounts say greater than Rs. 1,00,000/sealed trencare invited from the manufacture / dealers for the supply of materials like packing from the consumables and stationary items, throughout the year. Quotation for commodities are made whenever needed other the purchase order are made to he manufacturer whose furnished details and the quality of the commodity of satisfactory. Direct purchase of some products are made from other co op societies similarly spare pars for machinery are directly purchased he original makers. Requirements are intimated to the purchase section by indents from the general stores, which receive indents from various section. All purchase materials go to the individual only through the stores.

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PURCHASE SECTION The section handles all the purchasing activities of Dairy purchase of commodities carried out by calling tenders and quotations. Tenders are invited from manufactures. Dealers/ tenders for the supply of items packing materials, consumable miscellaneous item, etc on one year contract basis. The tender notice will be published in news paper, and it contains details of type and specification of the materials, tender form submission date etc. The samples will be tested in the quality Control lab to check whether it meets specification. Commercial bids of technically qualified samples will be opened and one with lowest contract price will be accepted for the year. The purchase of spare, for machine, vehicles, etc is carried out by calling quotations. They are called as end when required. Enquiry will be accepted for the year. Purchase of printing and stationary are made through cooperative society PRODUCTION OF MILK AND OTHER PRODUCTS Types of milk and butter Dump Storage Tank Capacity [10,000 litres] Fat Process Skim milk Cream Milk Pure Butter Cream and Cool water Out Extra skimmed milk Storage Cream tank Fat milk 74 heat 5 degree cool

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PRODUCTION OF PRODUCTS (IN TONES) 4.1 TABLE Year 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 SMP 1526 2312 2368 2183 2574 2686 3093 Butter 2552 3149 3188 3045 3479 3536 4233 Ghee 1153 1309 1514 1851 1884 1817 2455

The chart tells about of SMP, Butter, Ghee for the past seven years production of these products will increases substantially. The increases of theses products represents in 2008 2009 as 3093 tonnes. 4233 tonnes, 2455 tonnes.

4.2 Types TYPES OF MILK Tonned milk Standarlized milk Aavin Gold at% 3.0 4.5 5.0 SNP% 8.5 8.5 8.5

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BUTTER Aavins dairy fresh processed butter is a great company in your everyday break fast Ghee kettle Process 1 Packing Process 2 Storage Normal Fitter

Aavin altra-pure agmark shows the way for preparation of briyani, pular andsambar bouth besides south indfan sweets and sarrourioes comes in packs of 500 gm and 1 kg SKIMMED MILK POWDER Skimmed milk Process 1 Condenser

Power

Milk Spray

Auto move Motor

thick Milk

process 2 - 125C Steam in champers

Packing

Skimmed is produced in the unit and sold in 25kg bags to the industrial customers like horlicks etc.

AAVIN MANGO The Maavin Mango comes to the market as a delicious drink. Mad form the plup of the choicest, juiciest fresh mangoes. It has a tremendous mouth feel and body. The drink is not viscous and taste doesnt to fresh juice come in 200m packs

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FLAVORED MILK This unit is also packing flavoured milk of four different flavours such as cardamom, Chocolate, Pista and strawberry which has shelf life of 120 days. Fun drink that spells health and nutrition. High protein content and an extremdy low fat level enable easy digestion. Age or time of the day no restriction zero bacteria with no preservation comes in 200ml packs TETRA PACK Fun drink hat spells health and nutrition. High protein content and an extremely low fat level enables for easy digestion. Age or time pf the day no, restriction. Zero bacteria with no preservations. A whole some drinks drink, this comes in 4 exciting flavours and chocolate (with real cardamom oil and coca), pista and strawberry comes in 200ml packs.

B. MARKETING DEPARTMENT Fluid milk is sold through two different distribution channels 1. Milk consumer co operative institution 2. Private agents The sales take place outside the state like Ahmedabad, Delhi, Bombay, Pondhicherry and Indore. Head office is located at Chennai. Sales are done only on assignment basis. The consumer societies and co-operative stores get 30paise per liter agents get 15paise per litre margin. The main activities of marketing section are to float milk and milk products to the consumer at various distribution points within the Erode district

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MARKETED PRODUCTS AND THEIR PACKING 1. Milk 2. Butter 3. Ghee 4. Skim milk powder 5. Kova 500ml 250 sachets. 500 Gram, 20 kg 0.5kg, 1kg, 15 kg. 0.5 kg, 1kg, 15 kg. 25, 100, 250, 500 grams

MARKETING The erode district co operative milk products milk products union ltd has been a dominant player for the last three details in an in contested manner. On the basis of are the unions market divided in to three types, which are as follows. Local market National Market World Market OBJECTIVE OF MARKETING DIVISION To develop a market economic outlet for the products produced To monitors customers preference To ensure that the resulted milks are available for consumers in time. To develop new products to suit the changing requirements

TYPES OF MILK BEING SOLD Two types of milk are being sold namely Standardized milk Full cream milk

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4.3 Particular Quality Selling Price Societies Commision for agents Transport charges Society (Erode Only) Rs. 0.60 Rs. 0.25 / Litre Rs. 1 / Litre Rs. 0.25 / Litre Standardized Milk Fat : 4.5% SNF : 8.5% Rs 14.50 / Litre Commission for consumer Rs. 1 / Litre Full Cream Milk Fat : 6.0% SNF: 9.0% Rs. 16 / Litre Rs. 1 / Litre

LOCAL MARKET The erode milk union is presently marketing milk and milk products with in the district through various marketing channels. The erode union has been marketing milk in the following head quarters through customers societies agents. 1. Erode 2. Bhavani 3. Gobi chettiplayam 4. Perundurai 5. Kangayam 6. Dharapuram 7. Komarapalayam 8. Sathyamangalam 9. And other small towns such as sivakiri, Mettur, Vellakovil on an average nearly 40,000 litres of milk is being sold at present

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NATIONAL MARKET In national market, the products are marked by and only through Tamilnadu co operative milk producers feredration (TCMPF). Through fedretaion, the Erode milk union receives order and delivers the products. The main markets for Erode milk union are Ahamadabad, Delhi, Kolkatta, jodhpur, Gaya, Mumbai and pondicherry. WORLD MARKET Recently, he Erode union has received export license to export their products to other countries / Since recently they got this license, up to date they got order from gulf countries to supply Ghee Milk Powder

COLLECTION AND DESPATCH TIMES Collection morning Evening Despatch Morning Evening : : : : 8.30 am 11. 00 am (Avg : 48, 000 liters) 7.30 pm 10.00pm (Avg: 38,000 liters) 9.00am 12.00 pm 9.30 pm 2.30 am

MILK CARD SALES: Erode union has started alesin march 2002 in Erode area at first. Previously (i.e) in February 2002 Erode milk consumers society has sold 500 ml card only to 500 consumers

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PROMOTIONAL ACTIVITY To increases the sale of milk and to attract the consumers, Erode aavin introduced prize scheme for card sales. Under this prize schemes, Erode Aavin and distributed the following prize to the consumers. MONTHLY PRIZES Ist Prize IInd Prize IIIrd Prize Bumber Prize : : : wet grinder Cooker (1 litre capacity) Pressure Pan (Quarterly)

Refrigerator 165 liter capacity Gradually milk card sales were introduced in Bhavani, Komarapalayam and Gobi areas also. The card sales has increased as follows: 4.4 Month February March April May June 2007 500 3523 3908 3802 4326 2008 12594 12217 12664 13821 43226 2009 19451 10713 21830 21471 22968

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4.2 MARKETING SECTION Deputy Manager

Assistant Manager

Marketing Officers

Superintendent

Masters

Head Office Parlour

Mobile

2 office Files And other Works

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C. STORES DEPARTMENT Stores are meant to collect and safe raw material ancillary materials and machinery spare parts including electrical portion There are three sections in stores namely spares, daily consumable (oil, Grease packing materials) and society materials The main function of the stores management is to maintain the stock level. The total turnover of store isone Erode and is insured. Packing materials are purchased once in every 3 months. The cost of packing turnover in 25 lakhs In the storage department, but butter is stored temperature 30 degree. The milk powder is also stored and when there is demand they as converted in to milk for sale Two Godown facilities to store the milk powder, like 1,000 tons and 800 tons capacity

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RAW MATERIALS STORAGE NO OF CHILLERS: 3 Capacity Temp. Range RAW MILK SILOS: 3 Capacity : 15,000 litres each at 4 - 5C : : 30,000 litres / hr each 35 - 4C

NO OF PASTEURIZERS: 3 Capacity : 10,000 litres / hr each

NO. OF CREAM PASTEURIZERS Capacity : 2,500 liters / hr

NO OF CREAM SEPARATORS 5,000 liters / hr 4 in no 10,000 liters / hr 2 in no NO. OF SILOS Pasteurized with whole milk : Pasteurized skim milk Pasteurized cream : : 5 (30,000 Its each) 4 (60000 Its each) 4 (1 10,000 lts & 3 5,000 lts)

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FUNCTION OF STORES 1. RECEVING OF INDENT When a department an materials they will be fill in the indent the standing specifications 2. MARKETING ENQUIRY When it required the indent they are filled with necessary information made above the price, quailing etc., if the storekeeper is satisfied order, which is placed. 3. PURCHASING Having received the purchase requisition then the form order are placed to the suppliers. After the receipt of the article they are sent to the concerned department will check up the stores if not articles will be disposed by the stores. 4. PAYMENT Articles are purchased either on cash or DD or cheque. The bank intimates are arrival or the articles then the accounts de pays the amounts on the advise of the stores department to the bank. 5. STORES Any indent from that is receiving from any department requesting for an articles is attendant by the stores. The indent from should contain the signature of the concerned department.

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V. DATA ANALYSIS & INTERPRETATION

SALES OF AAVIN MILK AND MILK PRODUCTS

The sales of aavin milk and milk products are done through the aavin stalls and through milk consumer co-operative societies. The aavin stalls at all places in the town are allotted to various agents through tender every year. They will be provided with milk and milk products from erode diary. The milk packets will be provided twice in a day through trucks to all the aavin milk stalls. The erode diary also supplies milk to the milk consumer co-operative society twice in a day. The consumer co-operative society in turn supplies milk to all the shops and agents in the town through trucks. The money will be paid to the agents based on the percentage basis. Various percentages are fixed to various aavin products. These percentages will be fixed by Tamilnadu co-operative milk producers federation.

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5.1 Number and percentage of respondents who prefer to buy aavin

Number Respondents who aavin Milk respondents who prefer 23 prefer 198

Percentage 62 7

other milk brand Respondents cycle vendors Total 320 100 who prefer 99 31

Inference: From the table it is clear that out of 320 respondents 198 prefer to buy aavin milk, which comes to around 62%, 23 prefer to buy other milk brands which comes around 7% and 99 prefer to buy milk from cycle vendors which comes around 31%. 5.1 Number of respondents who prefer to buy aavin milk

200 150
no of repondants 100

50 0 aavin milk other brand milk milk from cycle vendors

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5.2 Number and percentage of people who prefer to buy aavin milk products :

Number Respondents who prefer to 76 buy aavin milk products Respondents who do not 120 know about aavin who milk know 124 products Respondents but do not buy Total 320

Percentage 23 38

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about aavin milk products 100

Inference: From the above table it is clear that 76 out of 320 respondents prefer to buy an aavin milk product which comes around 24%, 120 of them do not know about aavin milk products, which comes around 38% and 124 of them know about aavin milk products but do not buy them.

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5.2 Number of people who prefer to buy aavin milk products

140
no of respondents

120 100 80 60 40 20 0 prefer to buy aavin products do not know know but do not buy

5.3 Reasons for the purchase of aavin milk and milk products Reason Quality Freshness Neat package Easy availability Number 179 124 43 52 Percentage 60 39 13 16

Inference: From the table it is clear that 60% of the respondents prefer to buy aavin milk and milk products due to quality, 39% prefer to buy because of freshness, 13% refer to buy because of neat package, 16% prefer to buy because of easy availability.

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5.3 Reasons for the purchase of aavin milk and milk products

200 150
no of 100 r e s p o n d e n ts

50 0 q u a lit y fre s h n e s s ne at package e asy a v a ila b ilit y

5.4 Consumer response regarding price of the aavin milk and milk products
Number Respondents aavin milk who and buys 238 milk percentage 86

products and feel prize is reasonable Respondents aavin milk who and buys 36 milk 14

products and feel prize is not reasonable Total 274 100

Inference: From the above table it is clear that among 274 who buys aavin milk and milk products 238 feels that the prize of aavin milk and milk products are reasonable, which comes around 86% and 36 feels that it is not reasonable which comes around 14%.

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5.4 Consumer response regarding prize of the aavin milk and milk products
250 200 150 no of respondents 100 50 0 price is reasonable price not reasonable

5.5 Consumer response regarding quality of aavin milk and milk products Quality Very high High Satisfactory Bad Total Number 48 98 25 8 179 Percentage 27 54 14 5 100

Inference: From the above table it is clear that among 179 who prefer to buy aavin milk and milk products because of quality, 48 feels that it is very high, 98 feels that it is high, 25 feels that it is satisfactory and 8 feel that it is bad.

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5.5 Consumer response regarding quality of aavin milk and milk products

quality
100 80 60
no of respondents

40 20 0 very high high satisfactory bad

5.6 Consumer awareness regarding ISI and AGMARK standards Number Respondents who know 194 aavin products are ISI and AGMARK certified Respondents do not who 80 know aavin products are ISI Total and AGMARK 274 100 certified 29 percentage 71

Inference: It is clear from the above table that out of 274 who buys aavin milk and milk products, 194 respondents are aware of ISI and AGMARK signs and 80 do not know about the ISI and AGMARK signs.

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5.6 Consumer awareness regarding ISI and AGMARK standards

awareness of standards
200 150 no of 100 respondents 50 0 aware not aware ISI and AGMARK standards

5.7 Consumer response regarding aavin advertisement Number Respondents who have 76 seen aavin advertisement Respondents who have 244 not Total seen aavin 320 100 advertisement 76 Percentage 24

Inference: From the above table it is clear that out of 320 respondents only 76 have seen the aavin advertisement, which comes around 24% and 244 have not seen the aavin advertisement which comes around 76%.

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5.7 Consumer response regarding aavin advertisement

250 200 150 no of respondents 100 50 0 seen not seen advertisement

5.8 Consumer response regarding non favour of aavin milk Reason No home delivery No credit system No quality Total Inference: From the above table it is clear that out of 122 respondents, 72 respondents do not prefer to buy aavin milk because it is not home delivered, 40 do not prefer because it has no credit system and 10 do not buy because it is low in quality. Number 72 40 10 122 Percentage 60 33 7 100

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5.8 Consumer response regarding non favour of aavin milk

80 70 60 50 no of respondents 40 30 20 10 0 no home delivery no credit system no quality do not prefer aavin milk because

5.9 Consumer response regarding the availability of milk and milk products in the stall

Number Always available in the 174 stall Not available in the stall 100 always Total 274

Percentage 55 45 100

Inference: From the above table it is clear that out of 274 who buy both aavin milk and milk products 174 feel that it is always available in the nearby stalls and stores, 100 feel that it is not available always in the stalls.

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5.9 Consumer response regarding the availability of milk and milk products in the stall

200 150 no of respondents 100 50 0 available not available

5.10 Consumer response regarding the purchase quantity of aavin milk

Number Respondents who buys 80 below one litre of milk Respondents who buys 116 one litre and above Total Inference 196

Average 41 59 100

From the above table it is clear that out of 196 who buys the aavin milk 80 respondents buys below 1 litre and 116 respondents buys 1 litre and above.

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5.10 Consumer response regarding the purchase quantity of aavin milk

120 100 80 no of respondents 60 40 20 0 below one litre above one litre

5.11 Consumer behavior regarding the preference of aavin milk and milk products Products Milk Milk khova Ghee Others Number of respondents 196 95 53 48

Inference: From the above table it is clear that out 0f 320 196 prefer to buy aavin milk, 95 prefer to buy milk khova, 53 prefer to buy ghee and 48 prefer to buy others which include curd, dates khova etc.

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5.11 Consumer behavior regarding the preference of aavin milk and milk products
200 150 no of 100 repondents 50 0 milk milk khova ghee others preference

5.12 Consumer response regarding aavin stall at erode railway station Number Respondents need a aavin 152 stall Respondents do not need 48 a aavin stall total 200 100 25 Percentage 75

Inference: From the above table it is clear that out of 200 respondents 152 need an aavin stall at railway station and 48 of them do not need it.

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5.12 Consumer response regarding aavin stall at erode railway station

160 140 120 100 no of respondents 80 60 40 20 0 need aavin stall no need of aavin stall in railway station

5.13 Response of train travelers regarding the purchase of aavin milk and milk products Number Respondents during travel Respondents who will not 87 have or buy aavin products during travel Total 180 100 48 who will 93 have or buy aavin products Percentage 52

Inference: It is clear from the above table that out of 180 travelers 93 prefer to have aavin milk and milk products and 87 do not prefer to have aavin milk and milk products.

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5.13 Response of train travelers regarding the purchase of aavin milk and milk products

93 92 91 90 89 respondents 88 87 86 85 84 prefer to buy ordo not prefer to have aavin products travellers

Inference: It is clear from the above table that out of 180 travelers 93 prefer to have aavin milk and milk products and 87 do not prefer to have aavin milk and milk products.

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VI. FINDINGS
Findings from the research: It is evident from the research that nearly 50% of the respondents prefer to buy aavin milk. Those of who do not prefer to buy aavin milk are because they have their milk door delivered daily by the cycle vendors. The respondents who prefer to buy other milk brands is relatively low. The research shows that 65% of the respondents still dont know what are all the aavin products that are available in the aavin stall. Most of the people who prefer to buy aavin milk also prefer to buy milk peda. Most people prefer to buy aavin milk and milk products because of quality and freshness. About 80% of respondents feel that the prize of the aavin milk and milk products is reasonable and affordable. Most of the respondents feel that the aavin milk and milk products are high in quality, very few feel that it is inferior in quality. Most of the respondents are aware of the fact that aavin milk and milk products are ISI and AGMARK certified. Most of the respondents have not seen the aavin advertisement. Mainly the respondents who do not prefer to buy aavin milk is because it is not home delivered and there is no credit system provided to the customers. Many feel that aavin milk and milk products are always available in the aavin stall regularly. On an average a consumer buys 1 litre of milk every day. Mainly milk, peda and ghee are the preferred by the consumers. Most of the respondents at Erode Railway station need a aavin stall there. Most of the travelers are ready to buy aavin milk and milk products at the Erode Railway station.

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VII. SUGGESTIONS
The sales of the aavin milk can still be increased by 20 to 30 percent if it is home delivered. Door delivery staff can be appointed to different areas as per the consumer requirements and the aavin milk can be made door delivered. The amount spent on the advertisement is very low; most of the people still dont know what all the products available in the aavin stall are. The sales of the aavin products can only be increased only if people know about them and the only way to achieve is by advertisement. Various aavin product names can be made to display along with the pneumonic symbol at the side of the aavin vehicles and in the stalls. Advertisement plays a crucial role in promoting the products. A small ad can be given in the front page of the local daily regarding the qualities of the aavin milk products once in a week. This will create some awareness about the aavin milk products. The sales of the aavin milk and milk products can be increased by setting a aavin stall at the Erode railway station. Since the erode junction being the hub to many rail routes, hundreds of trains from all over India pass through the junction so surely there will be a huge response from the train travelers for the aavin milk and milk products. The sale can also be increased by some sales promotion strategies. Since most of the consumers belong to middle and lower middle class category they will not be able to pay the money daily so credit system can be followed by collecting some deposit at the starting itself. Free door delivery can also increase the sales of the aavin products.

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VIII. CONCLUSION
The study entitled A STUDY ON THE CONSUMER BEHAVIOR AND SALES PROMOTION STRATEGY OF AAVIN MILK PRODUCTS IN ERODE TOWN have been carried out in order to find out the sales of the aavin milk and milk products and to find about the consumer behavior of the same. The study reveals the following facts: Weekly four rail milk tankers of about 16000 litres milk is supplied to mother dairy, Delhi from the Erode Diary Average 13000 litres of pure milk is supplied for Chennai metro sales from erode diary Milk products like butter, ghee, skimmed milk powder, peda, dates khova flavoured milk, butter milk, badam milk powder, ice cream are produced at erode diary and selling to customers according to their requirements. The company has ISO 9001-2000 certified and ISI certified for the skimmed milk powder production and the erode diary ghee is sold with AGMARK certificate. National wide database laboratory established at erode diary out of 15 milk producers union selected by national diary development board in India. Union is selling ghee to thiruppathi thirumala devasthanam in tankers for laddu preparation. The union spends 154.42 lakhs, 167.2 lakhs, 169 lakhs, 187.74 lakhs, 219.28 lakhs for marketing for the past five years, which includes transport and agents commission. The union spends 1.20 lakhs, 3 lakhs for advertisement.

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APPENDIX The questionnaire prepared for the survey is as follows NAME: SAMPLE SIZE: 1)what type of milk products are available in your stores? a)butter milk b)lassi c)curd d)others 2)what are the milk brands available in your stores? a)Aavin b)Arokya c)Taste me d)Heritage 3)Do the companies give any schemes,when they launch a new product? a)yes b)no 4)what is the mode of distribution? a)distributors b)directly from the company c)wholesale d)others 5)which is the fast moving milk products? Milk products/litres Aavin Arokya Heritage 0.5L 1L

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6)what is the retailer rate for fast moving milk products?

7)what is the volume of sales for aavin milk, in the last month? a)less than 10 b)equal to 10 c)more than 10 d)more than 20 8)what is the volume of sales other than aavin milk, in the last month? a)less than 10 b)equal to 10 c)more than 10 d)more than 20 9)Do you see any increase in sales trend in any of the above categories? a)yes b) no If yes,then how much increase in volume of sale in litres..

10)what you think is the reason for increase or decrease in sale?

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11)For how long, you consuming aavin milk products ? a) 1yr b)2yrs c)5yrs d)10yrs 12)Is this product available near to your home? a)yes b)no 13)Have you come across any advertisement about aavin milk products? a)yes b)no If yes, where have you seen it? Please be more specific about the advertisement and how would you rate the ad

Type of ad/ your rating TV commercial News paper Magazines Journals Posters Banners Hoardings FM Internet Pamphlets & leaflets others

Excellent

Very Good

Good

Average Poor

14)Are you satisfied with milk products you receive? a) Yes b) No

If no what is your further expectation? 15)whether the distribution channel is good or fair?

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BIBLIOGRAPHY
BOOK REFERENCE: William L.cron..,Sales Management, John Wiley&Sons,inc.U.K,2006. Michael R. solomon, consumer behaviour, Pearson Publications, 2009. Donald R Cooper,Business Research Methods, New Delhi,Mc Graw-Hill Publishing Company Ltd, 2005. Philip Kotler, Marketing Management, New Delhi,Mc Graw-Hill Publishing Company Ltd, 2005. Kothari.C.R, Research Methodology, New Delhi, New Age International (p) Ltd, 2004.

WEBSITE: www.google.com. www.aavin.com. www.scribd.com. www.wikipedia.com. www.managementparadise.com.

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