Summer Training Report

Consumer Buying Pattern towards DEVBHOG Products

At CHHATTISGARH STATE COOPERATIVE DAIRY FEDERATION
LIMITED (DEVBHOG),
DURG (C.G)

Submitted For the Award Of

MASTER OF BUSINESS ADMINISTRATION
2016 – 2018

Guided By: Submitted By:

Shri Rajesh Shrivastav Bicky Mandal
(DGM Marketing, Nodal Officer) MBA 3rd Semester

Submitted To:
Institute Of Management
Pt. Ravi Shankar Shukla University, Raipur (C.G)

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 DECLARATION

I hereby declare that this project report entitled Inventory management and its impact on
working capital at Chhattisgarh State Cooperative Dairy Federation Limited
(DEVBHOG), Durg submitted to the Institute Of Management, Pandit. Ravi Shankar
Shukla University, Raipur in partial fulfilment for the award of degree of Master of
Business Administration 2016 - 2018 is:

(i) a bona fide work,

(ii) it has not been submitted to any University or Institute for any degree
or diploma,
(iii) I have not copied entirely from any project, website or any material,
(iv) Material relevant to the topic have been taken partially from books,
journals and websites have been properly cited in the bibliography
section of the project and do not violate the copyright law and do not
come under plagiarism.

(SIGNATURE)

NAME: BICKY MANDAL

DATE:

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 ACKNOWLEDGEMENT

The satiation and euphoria that accompany the successful completion of the project
would be incomplete without the mention of the people who made it possible.

I take this opportunity to express my sincere gratitude to Shri. Rajesh Shrivastav (DGM
Marketing, Nodal Officer) for his valuable guidance, support and encouraging words
during the entire project duration.

I feel privileged in expressing profound sense of gratitude and ineptness to Mr.

T.S.Ahuja (Assistant Marketing Manager) for his invaluable support, guidance and
suggestions which helped me to do the project.

I owe my wholehearted thanks and appreciation to Mr. Sanjay Sahu (Marketing Staff)
and the entire staff of the company for their cooperation and assistance during the
course of my project.

I am also thankful to Dr. G. K. Deshmukh (Sr. Assistant Professor)

Institute of management, Pandit Ravi Shankar Shukla University, Raipur (C.G) for the
efforts he has made to make this training possible, and also his timely guidance
regarding the project matters.

Date: Bicky Mandal

Place: Raipur MBA 3rd Semester
Institute of Management
Pt. Ravi Shankar Shukla University,
Raipur (C.G)

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 Table of Contents
CONTENTS PAGE NO.

1. INTRODUCTION

1.1 Company Profile

1.2 SWOT Analysis
1.3 Devbhog Mission
1.4 Devbhog Vision
1.5 Goal
1.6 Devbhog Policies
1.7 Product Profile
1.8 Organizational Structure
1.9 Objective of the Research
1.10 Theoretical Background

2. LITERATURE REVIEW

3. RESEARCH METHODOLOGY

3.1 Research Problem

3.2 Purpose of the Study
3.3 Objectives of the Research
3.4 Population
3.5 Hypothesis
3.6 Information Requirement
3.7 Research Design
3.8 Sample Size
3.9 Sampling Method
3.10 Sampling Design
3.11 Sampling
3.12 Sources of Data
3.13 Methods of Data Collection
3.14 Instrument for Data collection
3.15 Statistical Techniques Used
3.16 Limitations of the Research

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3 DATA ANALYSIS AND INTERPRETATION

4 FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

4.13 Findings
4.14 Conclusions
4.15 Limitations
4.16 Recommendations

BIBLIOGRAPHY
APPENDICES
Questionnaire
Company Details

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PREFACE

Today the business environment is rapidly changing in this competitive

environment the popular trend is also striving for maintaining its positions
therefore it become essential for the companies that they should know about
their preference & taste. Regarding a particular product it is of almost
necessary to know the consumers satisfaction to the value offered by the
company in case of dissatisfactory result it is essential to ascertain whether
the dissatisfaction is for entire product or part of it is and what value do the
consumers expect from it?

The research will provide the relevant information to the organization about
consumer attitude towards their products & services.
The research work is sincere effort to find out the ultimate requirement of
consumers for the betterment of research as well as the organization.

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EXECUTIVE SUMMARY
This final project was undertaken with the objective of “Consumer Buying
Pattern towards DEVBHOG Products”

Raipur Cooperative Milk Producer Union Limited was established on 25

July, 1983, which worked under Madhya Pradesh State Cooperative Dairy
Federation Limited. After the formation of Chhattisgarh state, it began
working separately. The Chhattisgarh State Cooperative Dairy Federation
Limited (CGCDF) was established on 15 Feb, 2013. The CGCDF is
registered under the Chhattisgarh Co-operative Society Act. The products of
CGCDF are sold in the market with the brand name Devbhog. The CGCDF
produces a wide range of products such as Clarified Butter (Ghee), Flavored
Milk, Cottage Cheese (Paneer), Curd (Dahi), Lassi, Shrikhand, Khova, Penda
(Peda) etc. The CGCDF is operating one major milk plant and 7 chilling
centers. The processing plant enabled to process the milk products and their
packaging. The functioning dairy cooperative societies (DCSs) under
CGCDF are 421. The dairy entrepreneurs are the members around 18923 and
have got all incentives provided by CGCDF.

Today Devbhog is a property and symbol of State government, many things

like of the high-quality products sold at reasonable prices, of the genesis of a
vast co-operative network, of the triumph of indigenous technology, of the
marketing savvy of a farmers' organization. And have a proven model for
dairy development (Generally known as “DEVBHOG”).

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CHAPTER (1)
INTRODUCTION

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 DEVBHOG

INDIAN DAIRY
INDUSTRY PROFILE

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 INDIAN DAIRY
INDUSTRY – A PROFILE
India’s modern dairy sector has expanded rapidly. India is recognized as a biggest and fastest
growing market in the world for milk and milk products. India's dairy market is multi-layered.
It's shaped like a pyramid with the base made up of a vast market for Chocolate. The bulk of
the demand for Chocolate is among the rural areas whose requirement is large.
India’s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West; so all the countries are looking at
Indian dairy industry markets for exports. As per GATT agreement the export subsidy is
reduced. Because of this India is expecting major changes in dairy industry of North America,
Europe and Australia. It may also get some advantage in this situation. After reduction in
subsidies given by other countries India would be able to compete with their products
efficiently on price in international markets. At present India has a negligible export to
international markets.
Both public and private sector have contributed to the dairy industry growth in India.
Government dairy distributes 90% of its milk in sachets or in containers while remaining 10%
is marketed as butter, ghee etc. On contrary, private sector only markets 20% of milk and
remaining 80% of milk is made into preparations suitable for exports.
Though India is No. 1 in milk production, it is unfortunate that we are importing milk products
from other countries. Since we do not have good technology for production of skim milk
powder we are forced to import them from Europe and New Zealand.

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 CHHATTISGARH DAIRY INDUSTRY – A PROFILE

Chhattisgarh State Cooperative Dairy Federation is one of the largest Cooperative Dairy
Federation in Chhattisgarh, owned and managed by milk producers of Chhattisgarh State. The
State Dairy Federation was formed in the year 2013 which was previously known as Raipur
Dudgh Sangh (a part of MPCDF of undivided Madhya Pradesh).

The other two States included under NDP-I are Uttarakhand and Jharkhand. Milk production
is estimated to have now reached 65,000 liters per day in Chhattisgarh with the expansion of
dairy cooperative committees in the State, officials here stated.
“Chhattisgarh’s average milk collection per day has reached over 65,000 per liter. It has
become possible through 627 dairy cooperative societies across the State,” Chhattisgarh State
Cooperative Dairy Federation President Rasik Parmar stated early this year.
The Federation has expanded its work in 15 districts of the State, he stated. As many as 370
new dairy cooperative societies were set up in the past two years taking the total of number of
cooperatives to 627 from 257.
More than 16,000 farmers have been directly associated with the federation through these
cooperatives, the State Cooperative Dairy Federation President said. Moreover, 55 more
committees are proposed to be set up in the new fiscal 2015-16 with a target to enroll over
4,000 members, he said.
“With the increase in number of committees, collection of milk per day has been increased.
Currently, the average milk collection has reached 64,785 liters,” he stated.
Besides, the Federation’s products with brand name ‘DEVBHOG’ have received encouraging
response from the customers, Parmar said. With a view to augmenting livestock and milk
production, an elaborate action plan will be prepared for the establishment of 5,000 dairies in
Chhattisgarh during the next five years, Agriculture Minister Shri. Brijmohan Agrawal had
stated last year.

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 COMPANY PROFILE CSCDF (DEVBHOG)

Jabalpur Sanchi Dugdh Sangh a dairy plant unit under cooperative union of MP federation ltd.
It is located at Imaliya about 15 km from Jabalpur formed by the sangh comprising of many
village. It covers 17 districts of the state and Jabalpur Sanchi Dugdh Sangh started in 1980 and
is the largest Dugdh sangh by area covered in the State. The milk comes from the cooperative
society formed by the Sangh comprising of many village. Dugdh Sangh use their own transport
facilities in receiving the milk from these village to milk products is distributed through
distribute of various routes to the retail over lets booths. Saanchi is located near Vidisha.
Saanchi stoop is the trademark of sanchi milk. Saanchi is located near Vidisha. Saanchi stoop
is the trademark of sanchi milk. The main plant of sanchi are in Bhopal, Indore, Gwalior,
Ujjain and Jabalpur city. Powder plant is located in Gwalior and Indore.

The Cooperative scenario of Chhattisgarh

Raipur Cooperative Milk Producer Union Limited was established on 25 July,

1983, which worked under Madhya Pradesh State Cooperative Dairy Federation
Limited. After the formation of Chhattisgarh state, it began working separately. The
Chhattisgarh State Cooperative Dairy Federation Limited (CGCDF) was established
On 15 Feb, 2013. The CGCDF is registered under the Chhattisgarh Co-operative
Society Act. The products of CGCDF are sold in the market with the brand name
Devbhog. The CGCDF produces a wide range of products such as ghee, flavored milk, paneer,
butter, curd, lassi, shrikhand, khova, peda etc. The CGCDF is operating one major milk plant
and 7 chilling centers. The processing plant enabled to process the milk products and their
packaging. The functioning dairy cooperative societies (DCSs) under CGCDF are 421. The
dairy entrepreneurs are the members around 18923 and have got all incentives provided by
CGCDF.

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Chhattisgarh State Cooperative Dairy Federation is one of the largest Cooperative Dairy
Federation in Chhattisgarh, owned and managed by milk producers of Chhattisgarh State. The
State Dairy Federation was formed in the year 2013 which was previously known as Raipur
Dudgh Sangh (a part of MPCDF of undivided Madhya Pradesh). There after its business was
taken over by Federation to set up TWO TIER SYSTEM and soon planning for THREE TIRE
SYSTEM based on Anand Pattern.

Chhattisgarh is one of the most progressive states of Republic of India. In the domain of dairy
development it is well known for its productive milch cattle. The economy of the state is
predominantly based on agriculture. People rear and breed cattle as a subsidiary occupation.
CGCDF has over 82000 lts per day milk producers in over 665 Dairy Cooperative Societies at
village level, functioning under 27 District Chhattisgarh State.
The mission of the Federation is to usher rural prosperity through dairy development. During
the last four decades of Cooperative Dairy Development by CGCDF, the dairy industry in
Chhattisgarh State has progressed from a situation of milk-scarcity to that of milk-surplus.

General profile of Chhattisgarh State Cooperative Dairy Federation

The Chhattisgarh State Cooperative Dairy Federation Limited (CGCDF)

is apex organization of the Dairy Cooperative of Chhattisgarh. Raipur Cooperative
Milk Producer Union Limited was established on 25 July, 1983, which worked under
Madhya Pradesh State Cooperative Dairy Federation Limited. After the formation of
Chhattisgarh state, it began working separately. The Chhattisgarh State Cooperative
Dairy Federation Limited (CGCDF) was established on 15 Feb, 2013. The CGCDF is
registered under the Chhattisgarh Co-operative Society Act.

In Chhattisgarh, there are around 421 Dairy Cooperative Societies (DCSs) with have got 18923
membership of dairy milk producers /dairy entrepreneurs.
The products of CGCDF are sold in the market under the brand name “Devbhog”. The CGCDF
produces a wide range of products such as ghee, flavored milk, paneer, butter, curd, lassi,
shrikhand, khova, peda etc. The CGCDF is operating one major milk plant and 7 chilling
centers. This processing plant is enabled to process the milk products and their packaging. The
processing capacity of plant is 65000 liter. The chilling centers have been established in Basna
(Mahasamund), Mujgahen (Dhamtari), Sarangarh, Pakhanjoor (Kanker), Bilaspur, Babusemara
(Jagdalpur) with chilling capacities of 49500 liter per day.

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The cooperative structure in Chhattisgarh:

In Chhattisgarh, the structure of dairy sector is quite different and it is only two tier system. At
present, there is no any dairy union. Milk is produced at village levels by individual farmers
and sold to dairy cooperative society. The milk collected at various village dairy societies and
then transported to the processing plant of federation. At federation, the collected milk is
processed and other value added milk products are prepared, packed and marketed. These milk
and milk products are marketed through wholesalers and retailers who have their own margins.
Chhattisgarh State Cooperative Dairy Federation Limited (CGCDF) is managed by National
Dairy Development Board.

Fixation of Price:

The basis for price fixation is the FAT and SNF (Solid but Not Fat) contents of the milk. Milk
with lowest FAT/SNF contents gets low price whereas milk with highest FAT/SNF contents
gets higher price. A minimum percentage of 8.52 per cent SNF is fixed by the dairy
organizations.

“Our Motto is to provide the quality milk and milk products, thereby DEVBHOG - the upfront
brand achieved an unmatched in quality and made available to consumers at most competitive
prices.”

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Chhattisgarh State Cooperative Dairy Federation
(CSCDF)
DEVBHOG Milk Plant, Kumhari

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 Objectives of CSCDF (DEVBHOG)

Through the rural area’s milk cooperative societies, the milk

producing farmers of the remote zone are compiling the milk at the

appropriate rate and after processing, the consumers have to provide

quality, pure and fresh milk and milk products at reasonable prices.

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 LATE SHRI Dr. VERGHESE KURIEN (Milkman of India)
The late Shri. Dr. VERGHESE KURIEN (26/11/1921 – 9/9/2012). The architect of 'white
revolution', Dr. Verghese Kurien, who led 'Operation Flood' to transform India from a milk-
deficient country to the world's biggest milk producer, is credited with laying the foundation of
the nation's cooperative dairy model. Hailed as the undisputed 'Milkman of India', who created
the billion dollar brand DEVBHOG, Kurien, who passed away this morning at the age of 90,
had received both national and international recognition. The Indian government had conferred
on him the Padma Vibhushan while he was also the recipient of World Food Price, Ramon
Magsaysay award for Community Leadership, Carnegie- Wateler World Peace Prize and
International Person of the Year award from US. Born in Kozhikode, Kerala on November 26,
1921, Kurien had graduated in science from Loyola College in Chennai (1940) and obtained
his degree in engineering from the Guindy College of Engineering in Chennai. After a stint at
TISCO, Jamshedpur, Kurien got the Government of India's (GoI) scholarship to study dairy
engineering.

On his return to India, Dr Kurien was assigned to join Government Creamery located at Anand
in Gujarat to serve his bond period. By the end of 1949, Kurien got release orders from his job
at the creamery. Kurien joined Kaira District Cooperative Milk Producers' Union Limited in
1949, on the request of Tribhuvandas Patel, the then dairy chairman. The dairy was formed at
the initiative of Sardar Vallabhabhai Patel. Later, Patel asked Kurien to help set up a dairy
processing plant, which saw the birth of DEVBHOG. DEVBHOG's co-operative model
became a success and it was replicated throughout Gujarat.

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The different dairy unions were later brought under the banner of Gujarat Co-operative Milk
Marketing Federation (GCMMF). Dedicating his professional life to empowering the Indian
farmers through co-operatives, Kurien, served GCMM from 1973 to 2006, and Institute of
Rural Management (IRMA) from 1979 to 2006. Kurien's tenure at Anand changed the destiny
of Indian dairy industry. He began helping the fledgling dairy co-operative. The first dairy co-
operative union in Gujarat was formed in 1946 with two village dairy co-operative societies as
its members. The number of member societies has now increased to 16,100, with 3.2 million
members pouring milk. Kurien is also credited with being the first one to produce powder from
buffalo milk, when elsewhere in the world, cow milk was used to produce milk powder.
Impressed by the success of DEVBHOG, then Prime Minister Lal Bahadur Shastri established
the National Dairy Development Board (NDDB) to replicate the DEVBHOG model across the
country and Kurien was made its chairman. NDDB launched 'Operation Flood' in 1970,
making India the largest milk producer in the world. He served as chairman of NDDB for 33
years from 1965 to 1998. The Board ensured replication of DEVBHOG model across India. It
played an instrumental role in increasing the milk production of the country significantly.
India's milk procurement increased from 20 million metric tons (MMT) per year in the 60s to
122 MMT in 2011. Dr Kurien's main contribution was in designing of systems and institutions,
which enabled people to develop themselves, as he believed the development of man can best
be achieved by putting in his hands the instruments of development. Interestingly, the
'milkman' of India did not consume milk himself. He used to say, "I do not drink milk as I don't
like it."

"दु ग्ध समिमि की चली लहर, ग ाँव-ग ाँव डगर-डगर"

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 SWOT Analysis

Strengths

 The company is having Chhattisgarh Government origin thus creating feeling of

oneness in the mind of the customers.
 It manufactures only milk and milk products, which is purely vegetarian thus providing
quality confidence in the minds of the customers.
 It is aiming at rural segment, which covers a large area of loyal customers, which other
companies had failed to do.
 People are quite confident for the quality products provided by Devbhog.

Weaknesses

 There are various big players in the Milk market, which acts as major competitors
restricting their growth.
 Lack of capital invested as compared to other companies.
 Improper distribution channel in Chhattisgarh.

Opportunities

 There is a lot of potential for growth and development as huge population stay in rural
market where other companies are not targeting.
 The Devbhog market is at growth stage with very less competition so by introducing
new brand and intensive advertising there can be a very good scope in future.

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Threats

 The major threat is from other companies who hold the majority share of consumers in
Chhattisgarh market that is DEVBHOG and Vachan.
 There exists no brand loyalty in the chocolate market and consumers frequently shift
their brands.
 New companies’ entering in Chhattisgarh market like Mother Dairy, Dinshaw milk fine
poses lot problems for Devbhog.

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 “Mission”

Review, Recreate and Rediscover the trend of Healthy Eating and

Innovate and Invent fresh new methods to Nourish and Delight everyone
we serve.

“Vision”

Be the Trend Setter in the field of Healthy and Tasty Eating to Achieve a
Sustainable Growth this will bring about an overall up liftmen of the
Organization, its People and the Society.

“Goal”

To provide our customers Perfect Taste and Quality in the Best of

Packaging.

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 PRODUCT PROFILE

1. Milk

 Pasteurized Standard milk

 Contains 4.5% Fat and 8.5% Solid Not Fat (SNF), Fortied With
Vitamin A & D.
 It has high nutritive value with body building proteins, bone
forming minerals and vitamins.
 Energy Value - 72 kcal / 100 Gram.

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 2. Lassi

 A delicious dairy product prepared from fresh whole milk contains

sugar and permitted flavor.
 Contains appreciable amount of milk protein and an excellent
beverage for quenching thirst.
 Fat - 3.5%, Total Solids - 30%, Sugar - 23.5%
 Calorific Value - 146 Kcal / 100 Gram
 It is available in 200 ml plastic glasses
 Shelf life is 3 days when stored under refrigeration.

3. Curd (Dahi)

 Obtained from pasteurized, homogenized milk by souring harmless

starter culture.
 As a part of food, it increases nutritive values and contains no
added sugar
 Most palatable, easily digestible.
 Therapeutic value in the stomach and during intestinal disorder.
 Fat - 3.0%, SNF - 8.5%, Total Solid - 11.5%
 Energy Value - 68 kcal / 100 Gram
 Shelf life is 2 days when stored under refrigeration.

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 4. Clarified Butter (Ghee)

 Richest source of milk fat, prepared from direct heating of milk

cream usually obtained by normal separation of milk.
 It has fine Grains, and good keeping qualities.
 Good source of Vitamin A,D,E & K
 FAT - 99.7%
 Energy Value - 897 kcal / 100 Gram
 Best before 180 days in refill pack and 180 days in Bulk pack
available in 5 Lts /15 Kgs.

5. Cottage Cheese (Paneer)

 Obtained by acis coagulation of high quality fresh milk.

 Marble white in appearance having slightly spongy body
 Used for making varieties of meal.
 Fat - 20% (Min.), Total Solid - 40% (Min.)
 Calorific Value - 331 Kcal / 100 Gram.
 Shelf life is 7 days when stored under refrigeration.

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 6. Penda (Peda)

 Obtained from fresh milk by desiccating,

 It holds high nutritive values and contains low added sugar,
 Most palatable,
 Fat - 20.0%, SNF - 42.0%, Protein - 14, Carbohydrate inclusive of
Sugar – 45,
 Energy Value - 416 kcal / 100 Gram,
 Shelf life is 7 days when stored under refrigeration.

7. Shri Khand

 Semi-soft, sweetish-sour, whole milk product prepared by

traditional method from lactic fermented curd.
 The chakka is mixed with required amount of sugar and natural
cardamom.
 Shelf life is 3 days when stored under refrigeration.

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 8. Flavored Milk

 Double toned, homogenized, bacteria free, sterilized flavored milk.

 Free from microorganism harmful to consumer health. Under
packed conditions does not need refrigeration.
 No formation of cream layer due to homogenization.
 Permitted fruit flavors / essences together with permitted
(matching) colors and sugar are used.
 Fat - 1.6%, SNF - 9% & Sugar 8%.
 Calorific Value - 75 Cal / 100 Gram.
 Available in 200 ml glass bottles.
 Best before 90 days.

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 ORGANIZATIONAL STRUCTURE

Plant Operator

Dairy Dock Asst. Peon

Dy. GM (Mechanical) Asst. General Manager Manager
Attendants Jeep Driver

General Manager
(Plant & Production) Sr. Technician Technician Boiler Operator

Dy. GM (Plant &

Asst. General Manager Manager LCD/Typist Peon Tanker Driver
Production)

SPO

General Manager
Dy. General Manager Asst. General Manager Manager Dairy Stock Asst. Peon
(Marketing)
Managing Director

LDC/Typist

Dy. General Manager

Asst. General Manager Manager Data Organizer LCD/Typist Peon
(MIS)

General Manager Dy. General Manager

Asst. General Manager Manager Sr. Assistant LCD/Typist Peon
(M&P/QC/MIS) (Purchase & Storage)

Dy. General Manager

Asst. General Manager Manager Sr. Technician Sr. Assistant LCD/Typist Peon
(Quality & Control)

General Manager Sr. Village Extension Jr. Village Extension

Dy. General Manager Asst. General Manager Manager LCD/Typist Peon
(Field Operation) Organizer Organizer

Jr. Assistant LCD/Typist Peon

Sr. Assistant
Dy. General Manager
Manager Stenographer
(Administration)
Public Relation Officer

Dy. General Manager

Asst. General Manager Manager Accountant LCD/Typist Peon
(Finance)

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 Objective of the Research

 To know awareness of people towards Devbhog products.

 To know the preference of Devbhog products with comparison to other competitive
brands.
 To know the factors which affects consumer’s buying behavior while purchase milk.
 SWOT analysis of Devbhog.
 To study various factors such as quality, price, easy available etc. Is influencing lot
and influences positively.
 Ideas about to increase the sale of the “Devbhog”.

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 THEORITICAL BACKGROUND

Introduction

CONSUMER BEHAVIOUR

 It is defined as all psychological, social and physical behavior of potential customers as

they become aware, evaluate, purchase, consume, and tell to others about product and
services.

 Buying behavior involves both individual (Psychological) and group process.

 Buyer behavior is reflected from awareness right through post purchase evaluation
indicating satisfaction and non-satisfaction, from purchaser.

 Buyer behavior includes communication, purchasing and consumption

Behavior.

 Consumer behavior is basically social in nature hence the social factors play important
roles in shaping buying behavior.

 Buyer behavior includes both customer and industrial behavior.

“Hence consumer behavior is an orderly process whereby the consumer

interacts with the environment for making a purchase decision on products.”

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CONSUMER BEHAVIOR AND MARKETING MANAGEMENT:-

 Marketing managements work around consumers which is actually the market for them.

 Understanding their behavior is very vital in every segment to plan marketing activities
accordingly.

 Both industrial and individual customers are vital in marketing Management.

DIVERSITY OF CONSUMER BEHAVIOR:-

 Customer and consumer words are referred as synonyms but the difference exists.

 Customer - the purchaser of product or service, may or may not be the end user.

 Consumer- the end user, may or may not be the purchaser.

 New age of business demands differentiation of customers by individual differences in

consumer expectations, preferences and influences.

 Firms need to go into deep of consumer behavior to analyze and act to achieve objectives.

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CONCEPT & NEED FOR STUDYING CONSUMER BEHAVIOR:-

Consumer behavior can be said to be the study of how individual make decision on how to
spend their available resources (time, money, effort) on various consumption related items.
This simple definition of consumer behavior tells the markets to resolve every activity around
the ultimate consumers & gauge their behavior by specially focusing on:

 Who buys products or services?

 How do they buy products or services?
 Where do they buy them?
 How often they buy them?
 Why do they buy them?
 How often they use them?

These questions will help in understanding better what factors influences the decision making
process of the customers. The decision making process identifies the number of people who are
involve in this process & describes a role to them like users, decides, influences & buyers.

It is believed that consumers or customers make purchase decision on the basis of receipt of a
small number of selectivity chosen pieces of information. Thus it will be very important to
understand what & how mush them to evaluate the goods & services offerings.

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CONSUMER DECISION MAKING PROCESS:-

 Stimuli- need, reasons, influences, gathering information,

 Information processing- process , analyze information about product,
 Decision making - on the basis of analysis , decision to go for,
 Response- response to buy without any prejudice,
 For industrial buyers the process is almost similar only with addition of re-buy, modified re
buy or new task.

FACTOR INFLUENCING BUYING BEHAVIOR:-

 Individual factors,
 Cognitive thinking process – perception , attitudes , Needs/motives,
 Personal characteristics – demography, lifestyles ,personal traits,
 Environmental factors,
 Culture- values ,beliefs, sub cultural / cross cultural factors,
 Social class- social class , society,
 Influence groups – family, opinion leaders, reference group,
 Situational variables – purchase occasion, market communication, shopping behavior,
price, sales influence, product position.

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CONSUMER SATISFACTION: -

All business firms have realized that marketing is a core element of management philosophy &
the key to its success lies in focusing more & more on the customers.

That is, it will be the customer who will decide where the firm is heading. Thus the challenge
before the marketer is to ensure that they should satisfy every customer.
Satisfaction is an important element in the evaluating stage. Satisfaction refers to the buyer’s
state of being adequately rewarded in a buying situation for the sacrifices he has made one the
customer purchase & use the product they may then become either satisfy or dissatisfied.

The result of satisfaction to customer form the purchase of the product or services is that more
favorable post-purchase attitude, higher purchase intention & brand loyalty to be exhibited that
the same behaviour is likely to be exhibited in a similar purchasing situation. The term
‘consumer’ is a typically used to refer to someone who regularly purchase from a particular
store or company.
Customers are people who are happy with the product & services & are willing to come back
& pay for it again.

Today the firms aim to give satisfaction to the customer through marketing concepts. The firm
try to help the buyers in the solving the problem then competitors. The marketers must see that
consumers with purchasing power constitute a potentials buyers are identified. It is essential
for the marketer to carry out the business in such a way that they give satisfaction to consumers
needed.
When a firm markets a product or service it should aim to enjoy consumer’s satisfaction &
profit maximization.

33
CONSUMER RESEARCH

Consumer research is the methodology used to study consumer behavior research offer set
diverse to identify consumer needs it is used to identify both felt & unfelt needs, to learn how
consumers. Perceive product & brand & stores. What their attitudes are before and after
promotional campaigns & how & why they make their consumption decision.

MARKETING RESEARCH

Marketing research plays an important role in the process of marketing. Starting with market
component of the total marketing talks. It helps the firm to acquire a better understanding of
the consumers, the competition and the marketing environment.

DEFINITION

“Marketing research is a systematic gathering, recording and analysis marketing problem to

facilitate decision making.”

- Coundiff & Still.

“Marketing research is a systematic problem analysis, model building and fact finding for the
purpose of important decision making and control in the marketing of goods and services.”

- Phillip Kotler.

34
MAIN STEPS INVOLVED IN MARKETING RESEARCH:-

Defining the Marketing Problem to be tackled and identifying the market research problem
involved in the task.
(1)Define the problem and its objectives.
(2) Identify the problem.
(3) Determine the information needed.
(4)Determine the sources of information.
(5)Decide research methods.
(6)Tabulate, Analyze and interpret the data.
(7) Prepare research report.
(8) Follow-up the study.

1) Define the problem and its objectives: - This includes an effective job in
planning and designing a research project that will provide the needed information.
It also includes the establishment of a general framework of major marketing
elements such as the industry elements, competitive elements, marketing elements
and company elements.

2) Identify the problem: - Identifying the problem involves getting acquainted with
the company, its business, its products and market environment, advertising by
means of library consultation and extensive interviewing of company’s officials.

3) Determining the specific Information needed: - In general the producer, the

manufacturer, the wholesaler and the retailer try to find out four things namely:-
(1) What to sell
(2) When to sell
(3) Where to sell

4) Determine the sources of information:-

Primary Data: - Primary data’s are those which are gathered

specially for the project at hand, directly – e.g. through questionnaires &
interviews. Primary data sources include company salesman, middleman,
consumers, buyers, trade association’s executives & other businessman & even
competitors.
35
 Secondary Data: - These are generally published sources, which
have been collected originally for some other purpose. Source are internal
company records, government publication, reports & publication, reports &
journals, trade, professional and business association’s publications & reports.

5) Decide Research methods for collecting data: - If it is found that the secondary
data cannot be of much use, collection of primary data become necessary. Three
widely used methods of gathering primary data are:-

A) Survey
B) Observation
C) Experimentation

A) Survey Method: - In this method, information gathered directly from individual

respondents, either through personal interviews or through mail questionnaires or
telephone interviews.

B) Observation Method: - The research data are gathered through observing and
recording their actions in a marketing situation. This technique is highly accurate. It
is rather an expensive technique.

C) Experimental Method: - This method involves carrying out a small scale trial
solution to a problem, while at the same time, attempting to control all factors
relevant to the problem. The main assumption here is that the test conditions are
essentially the same as those that will be encountered later when conclusions
derived from the experiment are applied to a broader marketing area.

D) The Panel Research: - In this technique the same group of respondents is

contacted for more than one occasion; and the information obtained to find out if
there has been any in their taste demand or they want any special quality, color,
size, packing in the product.

 Preparation of questionnaire
 Presetting of questionnaire
 Planning of the sample

36
6) Tabulate, Analysis and Interpret the Data:-
The report must give/contain the following information:-

a) The title of research

b) The name of the organization for which it has been conducted
c) The objectives of research
d) The methodology used
e) Organization and the planning of the report
f) A table of contents along with charts and diagrams used in the reports
g) The main report containing the findings
h) Conclusion arrived at end recommendations suggested
i) Appendices (containing questionnaire / forms used sample design, instructions.)

7) Follow-up the study:-

The researchers, in the last stage, should follow up this study to find if his
recommendations are being implemented and if not then why.

37
 CHAPTER (2)
LITERATURE REVIEW

38
 LITERATURE REVIEW

Abstract

In this paper we describe a case study of a Chhattisgarh State Cooperative Dairy Federation
(DEVBHOG), in western India that has developed a successful model for doing business in
large emerging economy. It has been primarily responsible, through its innovative practices, for
India to become world’s largest producer of milk.

Many of these economies have underdeveloped markets and fragmented

supply bases. Market failures for many of these small producers are high. On the other hand, the
size of both, markets and the suppliers is large. As a result, firms that identify appropriate
business strategies that take into account these
characteristics are more likely to succeed in these markets. The following are some key message
from DEVBHOG’s success: firms in these environments need to simultaneously develop
markets and suppliers to synchronize demand and supply planning, develop or become a part of
network of producers (i.e., cooperatives in this case) to obtain scale economies, focus on
operational effectiveness to achieve cost leadership to enable low price strategy. In addition, a
central focus to bring the diverse element together and a long-term approach are required.

In emerging economies different industrial sectors may be at different stages

of development. In some of the sectors all of the above environmental
characteristics faced may not hold. However, a subset of strategies followed by DEVBHOG
would still be useful. Thus, firms that are contemplating addressing large undeveloped markets
or have an intention of taking advantage of extensive but 1 marginal supplier base would still
benefit.

Problems in production, services and marketing of milk by members

Sulaiman & Pillai (2006) reported that working of DCSs was not up to the expectations of
members. The members of DCSs were not satisfied with procurement of milk although DCSs
have made various efforts for improving the efficiency of marketing. They also reported that
dissatisfaction among the members regarding in marketing efficiency were the low
procurement price of milk, partial collection of milk in flush season, indifferent attitude of the
staff, lack of transparency in the quality inspection, delay in getting the sale proceeds were the
main causes.

39
They were suggested that there must be a system for re-fixing the procurement price of milk,
collaboration with other agencies for capital assistance for dairy farming, supply of feed and
fodder at subsidize rates. Other recommendations were also be made for improvement the
quality of services provided by DCSs.

Tirfe (2008) found that there was a significant difference in members‟ satisfaction among the
sample cooperatives. Hadnet Dairy Cooperative had the highest member satisfaction rate
(100%) followed by Desta Dairy Cooperative (94%) while Fireweini and Semret Dairy
Cooperative had the highest unsatisfied members.
The reasons for the higher satisfaction rate of the members of Hadnet (Atsbi) was due to
effective leadership; relatively higher sale of milk and dividend received. On the other hand
Semret (Atsbi) and Fireweini had very low satisfaction rate. The average milk sold for all
cooperative was 1255 birr. (1 Birr = Rs 3.2665) The milk sold
ByHadnet was 6120 birr followed by Semret (2700 birr). All members (100%) of
Semret and Hadnet sold above average again followed by Desta 36% while none of the
members of Kisanet had sold above average. The average dividend received by all cooperative
members was found to be 428 birr. He found that liquidity ratio of Desta was 36.5 for the year
2007.

Ranjithkumar et al (2013) reported that majority of the producers are satisfied with the co-
operative milk society of Tirupur district because of its measurement, correct testing , market
price, payment and bonus. Some producers were not satisfied with the milk society because of
its timing, high charges of premium for cattle insurance, lack of training facilities, and lack of
loan facilities and high cost of fodder and feed. They reported that inconvenient timing is the
foremost problem faced by the milk producer followed by high charges of premium for cattle
insurance and lack of training facilities.

Koshta, et al. (2003) suggested that the competitive market price of milk should be given to
the members of RDSMM for enhancing the milk procurement to run the dairy plant up to the
break-even level so milk producers might be increased by curtailing the excess market network
of RDSMM, secondary functions such as cattle feed, veterinary facilities should be
strengthened so the non-members get membership of RDSMM to improve in the status of
dairy animals through availing the facilities of RDSMM.

40
Kumar et al. (2009) found that most of the farmers (80.9%) were facing the problem of the
non-availability of green fodder round the year at most of the times.
They also reported that problem of high cost of feed and fodder, inadequate knowledge about
balance feeding practices and lack of availability of green fodder round the year were
significantly correlated (0.8624, 0.839 and 0.7606 respectively) with milk production.

41
 CHAPTER (3)
RESEARCH METHODOLOGY

42
 RESEARCH METHODOLOGY
Methodology is the systematic, theoretical analysis of the methods applied to a field of study,
or the theoretical analysis of the body of methods and principles associated with a branch of
knowledge. It, typically, encompasses concepts such as paradigm, theoretical model, phases
and quantitative or qualitative techniques.
JOHN W. BEST

It simply means to known the methods used for collecting and analyzing data in a research
which involves instruments, interviews, company's reports, books, or by the observation of
participants.

RESEARCH PROBLEM

 Seek the general perception of consumer towards Devbhog Milk.

 To know the consumer psyche and their behavior towards Devbhog Milk .

PURPOSE OF THE STUDY

The present study intended to examine the status of CGCDF through assessing the
working performance of different indicators viz. physical and financial indicators and
their growth over the period 2003-04 to 2012-13. The study confined to CGCDF of
Chhattisgarh and empirical work is based on secondary and primary data with regards to
working of the milk federation in the state. So, the findings of the study would indicate
the scope to the policy makers, administration, and other officials in formulating the
better policies for the betterments of Devbhog but also the membered DCSs and dairy
entrepreneurs.

43
OBJECTIVE OF THE RESEARCH

 To know the relationship of sales with the advertisement.

 To know awareness of people towards Devbhog Milk.
 To know which advertisement tool is mostly preferred by people.
 To know the preference of Devbhog Milk with comparison to
other competitive brands.
 To know the factors which affects consumer’s buying behavior to purchase milk.

POPULATION

All types of outlets that stock and sell Devbhog milk in the markets. The outlets have
been classified into as follows:-

 Convenience stores: All kinds of shops including bakeries.

 Eateries: all kinds of eating joints.
 Particular region of consumers are analyzed in Raipur city (Mana Camp, Santoshi
Nagar, Amanaka, Devendra Nagar, Mowa, Pandri).
 It includes particular customers of Raipur city.

44
HYPOTHESIS

The following null hypotheses are being considered against the results obtained during the
investigation of study:

 The performance of different indicators of CGCDF does not satisfactory perform during
the period of study.
 The profitability of CGCDF is sub-optimal.
 The members of DCSs does not obtain the satisfactorily returns by producing milk
through raring the mulch cattle.

Information Requirement

 First, I had to know about all the competitors present in the Milk
segment (Reputed and well established brands as well as Local brands).

 Before going for the survey I had to know the comparative packs and
prices of all the competitors existing in the market.

 Since Milk is a product that used daily hence I had to trace the market and
segment it, which mainly deals with people of various age groups.

 The main information needed is the various types of brands available in the
market, their calorific value and various other facts.

 As Devbhog milk advertisements are mainly done through hoardings but on television
the advertisement is being telecasted timely and on the proper time or not.

45
RESEARCH DESIGN

A Research design specifies the methods and procedures for conducting a particular
study. It is a map (or) blue print to which the research is to be conducted.
Descriptive research design has been considered as a suitable methodology for present study
and for data analysis.

There are three types of research designs:

(a) Exploratory Research

(b) Descriptive Research
(c) Causal Research

Here, I have used descriptive research to carry out my project.

Descriptive research is used when the purpose of study is to learn who, what, when, where and
how of a topic. It takes the form of close ended questions and therefore limits the respondents
from their unique insights. It also helps to understand the present market scenario.

Sample Size

A sample is a finite part of a statistical population whose properties are studied to gain
information about the whole. When dealing with people, it can be defined as a set of
respondents selected from a larger population for the purpose of a survey. Sample size is an
important feature of any empirical study in which the goal is to make inferences about a
population from a sample. In practice, the need to have sufficient statistical power.

46
Sampling Method

Sampling methods are classified as either probability or non-probability.

In probability samples, each member of the population has a known non-zero probability of
being selected. Probability methods includes:

 Random Sampling
 Systematic Sampling
 Stratified Sampling

In Non-Probability sampling, members are selected from the population in some non-random
manner. These includes:
 Convenience Sampling
 Purposive Sampling
 Quota Sampling
 Snowball Sampling

For my project, I have followed Non-Probability sampling.

A non-probability sampling technique where the researcher select units to be sampled based on
their knowledge and professional judgment.

47
SAMPLING DESIGN

The sampling design used was Convenience sampling, which is a non-probability sampling
method. The convenience factors were the availability and approachability of the respondents.

SAMPLING

1. Sampling Technique: Non probability sampling

(A non-probability sampling technique is that in which each
element in the population does not have an equal chance of
getting selected).

2. Sample Unit: People who buy milk available in retail outlets, superstores, etc.

3. Sample size: 100 customers

4. Method: Direct interview through questionnaire.

5. Scale: Dycpnomic scale and Likert scale.

48
SOURCES OF DATA

 Primary sources

The primary data was collected through questionnaires. They were filled using the
scheduled method of data collection by the researcher.

 Secondary sources

The secondary sources were used only for collecting information regarding the
sample; they were however not used for analysis.

Method of Data collection

My method of data collection is primary data which I have taken through:

 Personal interview

Instrument for Data Collection

An objective type close ended as well as few open ended questions was utilized for making the
responds information useful for making this report. Hence, instrument used is:
 Questionnaire

Questionnaire is a set of printed or written questions with a choice of answers, devised for the
purposes of a survey or statistical study.

49
Statistical Techniques Used

Quantitative analysis is performed using the data collected at each outlet to

estimate the presence of Devbhog milk.

Tools Utilized:-

 Percentage Analysis
 Graph Chart

LIMITATIONS OF THE RESEARCH

The limitations of the research were as follows:-

1. Lack of proper experience on the part of the researcher in conducting such studies in the
past.

2. Time frame required was not enough to survey more number of outlets.

50
 Chapter (4)
Data Analysis and Interpretation

51
 DATA ANALYSIS AND INTERPRETATION

The collected data were not easily understandable, so I like to analyze the collected data in a
systematic manner and interpreted with simple method.

The analysis and interpretation of the data involves the analyzing of the
collected data and interpretation it with pictorial representation such as bar charts, pie charts
and others.

52
 CHAPTER (5)
FINDINGS, CONCLUSION AND
RECOMMENDATIONS

53
FINDINGS:-

I would like to present my survey findings. The main findings of my survey are as follows:

1. It is findings in the survey that females are the main decision maker for the milk. As per the
data, 65% of female and 35% of male makes purchase decision.

2. Based on the occupation of the customer, it is found in the survey that 65% are the
housewives and 35% are from various occupations such as a businessman, employee etc.
for the DEVBHOG Milk.

3. Incomes less than 5000 to 10000 are more attracted to DEVBHOG Milk. As per the data,
79% of the respondents’ income is under this group.

4. The main purchasing factors for the DEVBHOG Milk are Quality and Brand image. The
data reveals that 42% influences on Quality and 32% influenced for the Brand.

5. 88% of the total respondents are using product since from a long time. The majority of the
respondents are using DEVBHOG Milk & Milk products from more than 3 years.

6. 96% the respondents think that purchasing DEVBHOG milk is value for the money i.e.
DEVBHOG milk is valuable product for them.

7. It is found in the survey that customer are influencing through Word of Mouth.

54
SUGGESTIONS:-

1. Milk purchasing decisions are more decided by women rather than male, because she act as
an invigilator, execute her decision and influence the same to the purchase while
ascertaining the quality, freshness and price. Hence, I suggest GCMMF to concentrate more
on the women and men suggestions for designing the marketing strategy, because women’s
role in the house is dominant, even in the various decisions.

2. Occupation of the user influences the purchase decisions. The particular occupation plays a
vital role in deciding the product or services. Women segment are influencing more on
milk. Therefore, an occupation is the factor influencing the product.

3. Income of the people decides the purchasing power. The high income prefers to purchase
product with the quality, freshness, thickness, etc. and vice versa. So I suggest DEVBHOG
to concentrate also on low income segment to capture market and position themselves in
the minds of the customer with required quality and quality milk.

4. Since DEVBHOG is having loyal customers and therefore should concentrate more on this
factor through various potential programs such as campaign, premium packs, offers etc.,
this helps to increase the loyalty towards the DEVBHOG products.

5. Milk is having high demand and it is considered as a very essential products. In present
practice, purchase of milk is through dealers. In this connection dealers approach towards
the product.

6. Customer is influential, hence I suggest DEVBHOG to look after the dealers issue with due
care.

7. When product possesses quality and other important attributes naturally they propaganda
about product through word of mouth and vice versa. Therefore if the quality and attributes
are fine-tuned according to the needs will help the DEVBHOG to get reputation and
addition market.

8. Introduction of various economic products lies may help DEVBHOG to attract the existing
and new customers and may attract all income level groups. Hence I suggest management
to introduce new product line which can satisfy the entire group.

55
Suggestion for milk producer:

1. Milk producers should be used improved milch cattle for high milk production.

2. The milk producers should be used green fodder for maximum milk production. There
should provision to grow green fodder along with crops.

3. The farmers should be known about the problems regarding to milch cattle.

4. The members should have knowledge about loan procedure.

5. Government provides the 75% subsidy on purchase of chaff cutter to the member of DCSs.
So member of DCSs should purchase chaff cutter to reduce the wastage of fodder.

56
CONCLUSION:-

From the survey conducted it is observed that DEVBHOG milk has an average good market
share.

From the study conducted the following conclusions can be drawn. In order the dreams comes
into reality and for turning liabilities into assets one must have to meet the needs of the
customers.

The factors considered by the customer before purchasing milk are freshness, taste, thickness
and availability.

Finally I conclude that, majority of the customers are satisfied with the DEVBHOG milk and
Milk products because of its good quality, reputation, easy availabilities. Some customers are
not satisfied with the DEVBHOG Milk because of low price, lack of dealer services, spoilage
and low shelf life and it’s a public sector organization etc. therefore, if slight modification in
the marketing programme such as dealers and outlets, promotion programmers, product lines
etc., definitely company can be as a monopoly and strong market leader.

DEVBHOG has also to take care of its competitors into consideration and more importantly its
customers before making any move.

57
 Bibliography

References Books

 Marketing Management Philip Kotler, The Millennium Edition,

Prentice Hall of India Private Limited, New Delhi.

 Research Methodology: C.R.Kothari, 2nd edition.

Websites

 www.google.com
 www.cgcoopdairyfed.in
 http://shodhganga.inflibnet.ac.in/bitstream/10603/6538/7/07_chapter%
202.pdf
 http://www.pondiuni.edu.in/storage/dde/downloads/markiii_cb.pdf

58
 Appendices
QUESTIONNAIRE FOR CONSUMERS
A Study on Consumer Buying Pattern towards Milk & Milk Products
(A Case Study of Devbhog)
Part I: Demographic Profile

1. (a) Name: Mr./Mrs./Ms. …...……………………………………………………………..

(b) Address: …………………………………………………………….........
(c) Mobile No. …………………………………………………………….........
(d) Email ID: …………………………………………………………….........
(e) Sex: (a) Male ( ) (b) Female ( )
(f) Age: (a) Below 20 year (b) 21-30 year (c) 31-40year (d) Above 40year
(g) Occupation: (a) Student (b) Govt. Employee (c) Business (d) Others………
(h) Monthly Income: (a) Below ₹10,000 (b) ₹10,001- ₹50,000
(c) ₹50,001-₹1,00,000 (d) Above ₹1,00,000

Part II : Respondents Perception about Attractiveness to buying towards Milk & Milk Products
2. Kindly give your opinion against following statements which best relates to your opinion (Please tick
√ only an option among your satisfaction)

2.1. The different types of milk product available in market, the different varieties you know
(Only One)
(a) Milk (b) Paneer (c) Ghee (d) Shrikhand (e) Other …………..

2. Are you aware of the different Dairy brands available in the market, the different Brands
you aware of: (Only One)
(a) AMUL (b) Vachan (c) Devbhog (d) Others ……………

3. How do you aware of the Brands?

(a) Word of Mouth (b) Advertisement (c) Company Sales Person
(d) Agents (e) Any Other

59
 4. Presently Brand of milk you are using?
(a) AMUL (b) Vachan (c) Devbhog
(d) Milk boy (e) Any Other ………

5. What factors influenced you to buy this brand?

(a) Quality (b) Easy Availability (c) Price
(d) Dealer Relationship (e) Attractive Packaging (f) Regular Supply
6. Which type of milk you prefer to buy?
(a) Normal Milk (b) Double Tone Milk (c) Tone Milk
(d) Standard Milk (e) Full Cream Milk

7. Would you please specify the reasons for purchasing ………….. brand Milk?
(a) Reliability/Purity (b) Regular Supply (c) Easy Availability
(d) Reasonable Price (e) Attractive Packaging (f) Safe for consumption

8. If you are not using any another brand, milk then specify the reasons:
(a) Do not like taste/smell (b) It is not fresh (c) Irregular Supply
(d) Highly Priced (e) Poor Packaging (f) Credit Facility not available
(g) Inconvenience in procuring (h) Cream is removed
(i) Behaviors of Booth agent (j) Other (If any) ………..
9. Which company do you prefer for purchasing these dairy products.
(Please Tick Mark)
Product Company Name
Flavored Milk AMUL, Vachan, Devbhog, Other ………..
Clarified Butter (Ghee) AMUL, Vachan, Devbhog, Other ………..
Cottage Cheese (Paneer) AMUL, Vachan, Devbhog, Other ………..
Curd (Dahi) AMUL, Vachan, Devbhog, Other ………..
Shri Khand AMUL, Vachan, Devbhog, Other ………..
Butter Milk (Chaach) AMUL, Vachan, Devbhog, Other ………..

10. Any Suggestions

……………………………………………………………………………………………
……………………………………………………………………………………………
…………………………………………………………………………………………...

60