Abhishek BAMUL

A STUDY ON CHALLENGES FACING BY COMPETITORS AT BAMUL
LIST OF CONTENTS WITH PAGE NUMBERS

CHAPTER CONTENTS Page number
1 INTRODUCTION TO TOPIC 2 to 5
2 INDUSTRY PROFILE 6 to 22
3 RESEARCH METHODOLOGY 23 to 31
4 DATA ANALYSIS 32 to 48
5 SUMMARY OF FINDINGS 49 to 51
APPENDICES AND ANNEXURES 52 to 56
Department of Management Studies, CBSMS JB Campus, Bangalore University 1

CHAPTER 1
INTRODUCTION TO THE TOPIC

CHAPTER 1
INTRODUCTION TO THE TOPIC
THEORITICAL BACKGROUND
India is the world’s highest milk producer and all set to become the World’s
largest food factory. The milk industry in India is witnessing a large growth. The production
of liquid milk touched a high of 85 million tonnes in 2001-2002 placing the industry first in
the world.
Since 1991, after liberalization anybody and everybody have been free to enter the
Diary industry and to grab benefit from the markets that Domestic federation created and
nurtured with their sweat and blood.
Multinationals, backed by their surplus capital, are seeking a heavy share of Indian milk and
milk products market. At the same time regional, private companies have been able to
penetrate markets on the strength of aggressive pricing made possible by cavalier treatment
of taxation and laws and quality standards.
This Internship training was undergone to get the practical exposure of milk
industry. The Internship programme was undergone in Bangalore Milk Union ltd. (BAMUL),
an AMUL patterned diary cooperatives, which is supervised by KMF.
INTRODUCTION TO COMPETITORS:
“Any Person or entity which is a rival against another. In business, a company in the same
industry or a similar industry which offers a similar industry which offers a similar product or

service. The presence of one or more competitors can reduce the prices of goods and services
as the companies attempt to gain a larger market share.”
FOUR BROAD CATEGORIES OF MARKET TYPES

 Perfect Competition
 Monopoly
 Monopolistic Competition
 Oligopoly
1. Perfect Competition
 Many sellers, so many that firms are price takers

 Homogeneous product
 Easy entry and exit
 Perfect information about prices
2. Monopoly
 One producer
 Considerable power over price
 Unique product
 Very high barriers to entry
3. Monopolistic Competition
 Many firms
 Demand curve not completely flat
 Firms do not react to each other’s actions (because there are so many)
 Easy entry and exist
 Example: shirts, candy bars, restaurants….
 Not tomatoes at Sudbahnhof market, or petrol or cars
4. Oligopoly
 Few sellers

 Interdependence
 Advertising
 Competition
 Entry and exist barriers

CHAPTER 2
INDUSTRY PROFILE

CHAPTER 2
INDUSTRY PROFILE
INDUSTRY PROFILE:
The importance of dairying in country like India hardly needs emphasizing. India is
the highest milk producer in the entire globe. It also vast resources of livestock, which plays
an important role in the socioeconomic development of millions of rural households. The
Diary industry in India has been witnessing rapid growth with liberalization. The Indian diary
sector contributes a large share of agriculture gross domestic product (GDP). The main
objective of Indian Dairy industry is to manage the national resources in a manner to enhance
milk production and upgrade milk processing using innovative technologies.
During the 1950’s and 1960’s, India was one of the largest importers of dairy products,
importing over 40 percent of milk solids in the total throughout of the dairy industry. The
commercial import of milk powder reached its peak at about 53 thousand tons in 1963-1964.
This concerned policy Makers, and a decision was made to achieve self-sufficiency in milk
production. The Major step forward, which has had a far-reaching impact, came in mid-
sixties with the establishment of National Dairy Development Board (NDDB) to oversee
dairy development in the country.
The Operation Flood (OF) program, one of the world’s largest and most successful dairy
development programs, was launched in 1970; its main thrust was to organize farmers’
cooperatives in rural areas and link them with urban consumers. Operation Flood has led to
the modernization of India’s dairy sector and has created a strong network for procurement,
processing and distribution of milk by the cooperative sector. In 1989, the government of
India launched the technology Mission on Diary Development (TMDD) program to support
and supplement the efforts of Operation Flood and to enhance the rural employment
opportunities and income generation through dairying.

BAMUL
THE BANGALORE-RURAL & URBAN AND RAMNAGAR DISTRICT CO-
OPERATIVE MILK PRODUCERS SOCITIES UNION LTD.
Name : Bangalore Urban, Rural & Ramanagara Districts
Co-Operative Milk Producers Societies Union Ltd
President : Mr. Appaiah.H
Managing Director : Sri D C. Nagaragaiah
Address : Dr. M H Marigowda Road, Dharmaram College Post,
Bangalore-560029
Registration Number : An ISO 22000:2005 & ISO 9001:2000 Certified
Establishment : December 1975
Type of unit and Constitution : Small Scale Co-Operative Unit
Main Raw material : Milk
Manufacturing Products : Toned milk, Standard Milk, Full Cream Milk, Curd,
Ghee.
Auditors : Charted Accountants
Organisation Set Up : 52 Acres
Website : Www.bamulnandini.coop
Nature of the organization : Co-Operative
Business Volume : 2016-17 Turnover Rs.1.791/-Crores.

“BANGALORE-URBAN & RURAL AND RAMANAGARA DISTRICT CO-

OPERATIVE MILK PRODUCERS SOCIETIES UNION LTD. (BAMUL)”
BAMUL was established during 1975 under operation flood 2 by keeping “AMUL” as its
role model. At present BAMUL has Bangalore Urban, Bangalore Rural & Ramanagara
Districts of Karnataka State as its area of operation for milk procurement and selling milk in
part of Bruhath Bangalore Mahanagar palika (BBMP) area. Since its inception the union is
constantly striving further for dairy development and marketing activities in its milk shed
area.
The Bangalore Milk Union Ltd. (BAMUL) is a unit of Karnataka Cooperative Milk
Producers Federation Limited (KMF) which is the Apex Body in Karnataka representing
Dairy Farmers Co-operatives. It is the second largest Dairy cooperative amongst the dairy
cooperatives in the country. In south India, it stands first in terms of procurement as well as
sales. The brand “Nandini” is the household name for pure, fresh milk and milk products.
On January 1st 1958 a pilot scheme to cater the Bangalore Milk market, department of
animal husbandry, government of Karnataka was started milk processing facilities and
veterinary hospitals at National Dairy Research Institute (NDRI). Later in 1962, the milk
supply scheme came into existence as an independent body. With the great efforts by the
honourable minister for revenue & dairying, government of Mysore Sri M V Krishnappa, a
joint venture of UNICEF, government of India & government of Mysore was dedicated
Bangalore Dairy to the people of Karnataka State on 23rd January 1965 by the honourable
prime minister late Sri Lal BahadurShastriji. The Bangalore Dairy scattering over an area of
52 acres of land, the Dairy had an initial capacity to process 50,000 Litters of milk per day.
Bangalore Dairy underwent a structural change in December 1975, handed over to Karnataka
Dairy Development Corporation (KDDC). Rural milk scheme of Mysore, Hassan & Kodagu

districts was started under operation flood-II during 1981 and later increased to 3.5 lakh
litters per day under operation flood-III during 1994.
As per the policies of the National Dairy Development Board (NDDB), Bangalore
Dairy was handed over to Bangalore Milk Union Limited. (BAMUL) on 1st September 1988.
The union is capable of processing the entire Milk procured, by timely implementation of
several infrastructure projects like commissioning of new mega dairy state-of-the-art
technology with a processing capacity of 10.65 Lakh litters per day, new chilling centres,
renovation of product block etc.
The milk shed area of BAMUL comprises of 2611 revenue villages. As of now the union has
functioning 2084 Milk Producers Cooperative Society (MPCS) in 4320 villages in these 3
districts. In this MPCS’s there are 351121 registered milk producer members. Among them
122891 members are women and 59695 members belong to schedule caste and schedule
tribes.
The philosophy of this cooperative milk producer’s organization is to eliminate middlemen

and organize institutions owned and managed by milk producers, by employing
professionals. Achieve economies of scale of rural milk producers by ensuring maximum
returns and at the same time providing wholesome milk at reasonable price to urban
consumers. Ultimately, the complex network of cooperative organization should build strong
bridge between masses of rural producers and millions of urban consumers and achieve a
socio-economic revolution in the village community.
BAMUL has been registered under MMPO by central registration Authority. Today,
the union has become the biggest milk co-operative union in southern India. BAMUL has
been certified for ISO 22000:2005 & 9001-2000 for quality management and food safety
systems.
In recognition to this efforts and achievements, the National Productivity Council

(NPC) of government of India has conferred “BEST PRODUCTIVITY AWARD” five
times and “ENERGY CONSERVATION AWARD” by Bureau of Energy Efficiency
(BEE) to the unit.

OBJECTIVES:
 To organize Milk Producers Co-operative Society (MPCS) at village level and

dissemination of information like good diary animal husbandry and breeding practices
and clean milk production through Extension services.
 To provide assured market & remuneration price for the milk produced by the farmer
members of the co-operative societies.
 To provide technical input services like veterinary services, artificial insemination,
supply of balanced cattle feed & fodder seed material etc., to milk producers.
 To facilitate rural development by providing opportunities for self-employment at
village level, thereby preventing migration to urban areas, introducing cash economy
& opportunity for study income.
 To provide quality milk and milk products to urban consumers at competitive prices.
VISION:
“Model Co-operative Milk Dairy in the Country”
MISSION:
 Ushering rural prosperity in the lives of member milk producers.
 BAMUL is also organizing consumer awareness programme as a part of market
development to create awareness of “Nandini” milk through personal contacts, door to
door campaigns, organizational meetings, school children Mega Dairy Plant visit etc.
Are conducted regularly.
 Milk Product Block within the campus to manufacture Butter, Ghee, Peda, Flavoured
Milk, Spiced Butter Milk, Paneer, Set Curds etc.
 BAMUL has planned new project to convert Hosakote Chilling Centre into a 2.0
LLPD Capacity Dairy with an investment of Rs.2427.00 Lakh and a New Product
Block at Bangalore Dairy Premises with an Investment of Rs.2033.00 Lakhs.
 Mega Dairy with a capacity to process 6 lakh litres of milk per day expandable to 10
llpd has been built by investing Rs.38.70 crores. The Mega Dairy, as latest state-of-

the-art technological facilities in dairy processing and the union will have the ability
to manufacture milk and milk products to world class standards.
 The strategy of Bangalore Milk Union is “Procure More, Sell More & Serve More”
and reaping the benefits of economies of scale.
 Importance has been given to enrol more and more milk producers in the villages has
members of these DCSs. While enrolling these members, more emphasis is being
accorded to enrol more number of women members and to organize more woman
managed DCSs under STEP (Support to Training and Employment Programme for
Women).
 Ultimately, the complex network of Co-operative organisation should build a strong
bridge between masses of rural producers and millions of urban consumers and
achieve a socio-economic revolution in the village community.
 Achieve economies of scale of rural milk producers by ensuring maximum returns
and at the same time providing wholesome milk at reasonable price to urban
consumers.
 The philosophy of this Co-operative milk producers organisation is to eliminate
middlemen and organise institutions owned and managed by milk producers, by
employing professionals.
PRODUCTS PRODUCED:
1. Nandini Pasteurised Toned Milk
Karnataka’s highest selling and Most Prepared Milk. Pasteurised

Toned milk with min. 3.0% fat and Min. 8.5% SNF Content Make This milk the best choice
for all purpose and all Generations.
Available in 200ml/, 250ml, 500ml, 1litre and 6 litre pouches. Homogenised Variants Also
Available.
2. Nandini homogenized milk

Nutrient rich Homogenised Milk with Min 3.5% and Min. 8.5% SNF.
Enjoy the Thickness and extra creamy feel till the last drop, Thus Preparing more cups of
Tea or Coffee out of every pack.
Available in 200ml /250ml, 500ml, 1 litre and 6 litre pouches.
3. Nandini Double Toned Milk

Pasteurized Double Toned Milk. Homogenised Milk with Min.1.5%
and Min. 9.0% SNF. Ideal for Health-Conscious People and Senior citizens. Available in
200ml-250ml, 500ml and 1litre pouches.
4. Nandini Shubham pasteurized Standardized Milk
Pure pasteurized standardized milk having 4.5% fat and 8.5% SNF.
Processed all the goodness of healthy milk for healthy growth in children.
Available in 200ml/250ml, 500ml, 1litre.
5. Nandini samrudhi pasteurised full cream milk
Pure pasteurised full cream milk with 6.0% fat and 9.0% SNF. Rich
creamier and tastier milk. Ideal for preparing homemade sweets.
Available in 200ml/ 250ml, 500ml and 1 litre.
6. Curd
Nandini curd made from pasteurised toned milk. Fresh curd that tastes just like
traditional homemade curd. Can be consumed as such are in combination with cooked rice or
added as an ingredient in certain dishes.
Available in 200g, 500g, 1kg and 6kg pouches and
Also available in 250g/ curds in Dharwad only packed and sold by Dharwad Milk Union.
7. Nandini spiced butter milk

Nandini spiced butter milk is refreshing health drink is made from quality curd
blended with natural seasoning and condiments to give that enlivening spicy tang of traditional
spiced butter milk. It promotes health and easy digestion.
Available in 200ml sachet.
8. Nandini Shrikhand elaichi flavoured
Nandini Shrikhand is a traditional Indian sweet dish. It is made of

strained yoghurt/chakka with the addition of sugar, mango pulp and other non-dairy ingredients
also. It is very delicious and tasty. Shrikhand can be served plain or accompanied with pooris
or chapatti.
Available in 100g, 200g and 400g PP containers.
9. Nandini Shrikhand Mango flavoured
Nandini Shrikhand is a traditional Indian sweet dish. It is made of

strained yoghurt/chakka with the addition of sugar, mango pulp and other non-dairy ingredients
also. It is very delicious and tasty. Shrikhand can be served plain or accompanied with pooris
or chapatti.
Available in 100g, 200g and 400g PP containers.
10. Nandini Goodlife from Cow’s Milk-Toned Milk
Nandini Goodlife from cow’s milk-toned milk is UHT processed

milk with MIN 3% fat and min 8.5% SNF. Suitable for all generation.
Available in 100ml, 200ml and 500ml Fino packs and also available in 500ml and 1 litre tetra
brick packs.
11. Nandini Slim
Good life slim skimmed milk is UHT processed milk with max. 0.5%
fat and min. 9.0% SNF. It is the perfect for a healthy life style among fitness conscious people
and senior citizens.
Available 500ml Fino packs and also available in 500ml and 1 litre tetra brick packs.

12. Goodlife UHT long-life milk
Good life cow milk is UHT processed milk with Min 3.5% Fat and
Min 8.5% SNF. Suitable for all generations.
Available in 500ml and 1 litre Tetra Brick Packs.
13. Nandini Smart fortified with vitamins A+D
Good life smart homogenised double toned milk UHT processed milk
with Min 1.5% and Min 9.0% SNF fortified with vitamin A and D suitable for preparing TEA
or Coffee, milk shakes and Milk delights for people leading a fitness conscious life style.
Available in 100ml, 200ml, and 500ml, Fino packs and also available 160ml, 200ml, 500ml
and 1litre and tetra brick packs.
14. Nandini sampoorna
Sampoorna homogenised standardised UHT processed milk. Nutrient

rich wholesome milk with Min.4.5% fat and Min.8.5% SNF for active energy and good
strength in growing children.
Available 500ml and 21 litre Tetra Brick packs.
15. Nandini Spiced Butter Milk- In Tetra brick pack
Nandini spiced butter milk is refreshing health is made from quality

curd and blended with natural seasoning and condiments to give that enlivening spicy tang of
traditional spiced butter milk. It promotes health and easy digestion.
Available in 160ml and 200ml tetra brick packs.
Some of the other products are:
16. Nandini lassi in Tetra Brick Pack- plain and Mango
17. Flavoured Milk in Tetra Brick Pack-Pista strawberry and Badam.
18. Nandini Butter Salted
19. Nandini Butter unsalted
20. Nandini pure Cow Ghee

21. Dairy whitener
22. Skimmed Milk Powder
23. Badam Milk Mix
24. Family Pack Fresh Milk Ice Cream-Butterscotch
25. Family Pack Fresh Milk Ice Cream-Black current
26. Family Pack Fresh Milk Ice cream-chocolate
27. Family Pack Fresh Milk Ice Cream-Mango
28. Family Pack Fresh Milk Ice Cream-Vanilla
29. Family Pack Fresh Milk Ice Cream-Strawberry
30. Nandini Coconut Burfi
31. Nandini Badam Burfi
32. Nandini Cashew Burfi
33. Nandini Chocolate Burfi
34. Nandini Besana ladoo
35. Nandini Kunda
36. Nandini Dharwad Peda
37. Nandini Milk Peda
38. Ready to eat Jamoon
39. Ready to eat rossogolla
40. Chocolates
41. Nandini Diced Paneer
42. Nandini Cheese
43. Nandini Paneer
44. Nandini Flavoured Milk-In bottles

FUNCTIONS:
 Evaluating and rating of suppliers.

 Selecting of suppliers.
 Finalisation of terms of purchase.
 Placement of purchase orders.
 Follow-of UP with the suppliers.
 Approval of payments to suppliers.
TERMS AND CONDITIONS:
 No enhancement in price during the contract will be allowed. Taxes and duties
specifically agreed will be paid to the suppliers on producing relevant certificates.
 BAMUL has the right to cancel the order. If the cancelation of order is due non-
compliance by the suppliers then the suppliers shall be responsible for any direct and
indirect loss that BAMUL may suffer in making alternative arrangements for the
materials.
 The materials will be subject to test and inspection by BAMUL. The decision of
BAMUL has to the rejection of materials shall be final and binding on the suppliers.
 The suppliers shall be responsible for any defects in the materials that may develop that
may use, arising from faulty materials, workmanship or otherwise.
PURCHASE / TENDER PROCESS:
VALUE LESS THAN A LAKH:
DOCUMENTS REQUIRED:

Indent along with note approved by the managing director.
1. Enquiry will be made with the registered

Manufactures / dealers / distributors / suppliers etc.
2. Preparing comparative statement of the offers received.
3. Samples quality checking wherever samples obtained.
4. Rate analysis.
5. Placing before the purchase comity for decision if the total purchase value exceeds and
then obtaining approval of the managing director. Below Rs.40, 000 direct approval
from the managing director and also depending upon the situations.
6. Placing purchase orders / work orders.
7. Quality checking after receipt of the material.
8. Expectancy.
9. Payment as per terms and conditions.
HUMAN RESOURCE DEPARTMENT:
HUMAN RESOURCE is the company department charged with the finding,

screening, recruiting, and training job applicants as well as administering employee-benefits
programs. As company recognise to gain competitive edge, human resources play a key role in
helping company deal with a fast-changing environment and the greater demand for the quality
employees.
A Human Resources department of an organization performs Human Resource Management,

overseeing various aspects of employment, such as compliance with labour law and
employment standards, administration of employee benefits and some aspects of recruitment
and dismissal.
OBJECTIVES:
 To help the organisation to attain its goals effectively and efficiently by providing
competent and motivated employees.
 To utilise the available human resource effectively.
 To increase fullest the employee’s job satisfaction and self-actualisation.

 To develop and maintain the Quality of Work Life (QWL) which makes in the
organisation a desirable personal and social situation.
 To help maintain ethical policies and behaviour inside and outside the organisation.
 To establish and maintain cordial relations between employees and management.
 To reconcile individual / group goals with organisational goals.
FUNCTIONS:
 Effectively managing and utilising people.

 Tying performance appraisal and compensation to competencies.
 Developing competencies that enhance individual and organisational performance.
 Increasing the innovation, creativity and flexibility necessary to enhance
competitiveness.
 Applying new approaches to work processes design, succession planning, career
development and interorganisational mobility
 Managing the implementation and integration of technology through improved staffing,
training and communication with employees.
 Maintenance of attendance and service records.
BENEFITS AND SECURITIES TO EMPLOYEES:
 Uniforms: Every representative is given 2 sets of uniforms and 1 set of shoes.

 Canteen facility: The labourers and representatives are given canteen facilities at a
lower cost.
 House Rent Allowances: it is provided to all permanent employees at a rate of 30% of
their basic pay.
Litres cost of petroleum. Representatives whose fundamental pay is above Rs.15600
would be given 22 litres cost of petroleum.
 Shift Allowances: employees who work on shift basis are provided wages as follows:

First shift Rs.8 per day, second shift Rs.6 per day, third shift Rs.10 per day. Shift
allowance should not be taken into account for the purpose of calculating provident
fund, bonus etc.
 Provident and Pension Fund: This contribution is equal to that of employee
contribution, that is, 12% of salary is divided among provident and pension fund as
8.33% and 3.67% respectively. The total amount accumulated is balanced in the
individual provident fund account and is paid to employee at the time of his retirement
or on is living the service. In the event of death of an employee accumulates balance is
paid to is legal heir.
 Gratuity: the amount of gratuity payable is generally 15Days on the average salary if
and only if the employee has worked for minimum 5years in the organisation. For this
purpose, salary includes only basic pay, dearness allowances and is completed days of
service.
CORPORATE SOCIAL RESPONSIBILITY (CSR):
Corporate Social Responsibility (CSR) is a business approach that contributes to sustainable

Development by Delivering Economics, Social and Environmental Benefits for all Stake
holders. CSR Strategies Encourage the company to make a positive impact on the Environment
and Stake holders including Consumers, Employees, Investors, Communities and Others.
Some of the CSR Activities undertaken by BAMUL as follows:
 Better use of irrigation water.

 Bigger harvest.
 Enforcement of land reforms.
 Clean drinking water.
 New strategy for forestry.
 Protection of environment.
 Concern for the consumer.
 A responsive administration.
 Infrastructural development.
 Free health camps.

 Special financial assistance.

 Education.
 New strategy for forestry.
 Protection of environment.
 A responsive administration.
 Infrastructural development.
PORTFOLIO:
 Brand name: “NANDINI”

 Tagline: The milk brand trusted by millions.
 Slogan: Drink more nutritious milk every day stay healthy and fit the Nandini way!
 Description: Karnataka Milk Federation was established in 1974. KMF sales milk and
milk products in the name of Nandini. It is federation of milk producer association.
Working on cooperative principles. It the second largest milk co-operative in India. It uses
AMUL model pattern and adopts a low-cost price strategy to make its products affordable and
attractive to customer.
SWOT ANALYSIS
STRENGTHS:
 Wide distribution network leads to regular and timely supply.

 Milk processed is local there for reduced transportation cost.
 Automated computerised plant.
 Market leader in major milk and milk products.
 Wide product range.
 Brand loyalty among consumers.
 Consumers’ complaint are redressed.

 Maintaining uniform quality.

 Customers are widely aware of the company and its products.
 Customer satisfaction is achieved for several years.
WEAKNESS:
 Less advertisement of milk and milk products.

 Lack of flexibility in the system.
 Merits employee’s seniority.
 Internal politics.
 No discount promotional schemes or coupons.
OPPORTUNITIES:
 Opportunity to expand.
 It has an opportunity to introduce new product like cheese and biscuits etc.
 It can expand its marketing activities all over India.
 It can increase its sales and grab the unoccupied market share.
 It can increase production capacity.
THREATS:
 The competitors are providing more margin to retailer.

 Entry of loose milk providers at cheap rate.
 The national and multinational private companies are giving through competition.
 Some of the developed countries are dumping low cost dairy products in India.
 Markets.
 Unethical practices by private dairy operators.
 The threat from other companies who hold the maximum share of consumer in the
local market like for example AMUL.

 There is no brand loyalty in chocolate market and the consumer frequently changes
their brand.
CHAPTER 3
RESEARCH METHODOLOGY

CHAPTER 3
RESEARCH METHODOLOGY
A STUDY OF SELECTED RESEARCH PROBLEM
The basic objective of this research is to study the marketing strategies

and challenges facing by competitors at BAMUL.
Competitor Analysis Defined
Competitor analysis provides both an offensive and a defensive strategic context for
identifying opportunities and threats. The offensive strategy context allows firms to more
quickly exploit opportunities and capitalize on strengths. Conversely, the defensive strategy
context allows them to more effectively counter the threat posed by rival firms seeking to
exploit the firm’s own weaknesses.
Through competitor analysis, firms identify who their key competitors are, develop a profile
for each of them, identify their objectives and strategies, assess their strengths and
weaknesses, gauge the threat they pose, and anticipate their reaction to competitive moves.
Firms that develop systematic and advanced competitor profiling have a significant
competitive advantage.
SCOPE OF THE STUDY

The study helps to get an overall idea regarding the various competitors who are giving
competition to the BAMUL in milk industries through there techniques and strategies. This
study is to know how the BAMUL is giving a tough competition to their competitors.
Apart from this
 To get a practical vision of the organization and competitors apart from the theory
which have been learned in the class
 To understand the actual competition and strategies.
 To get in touch with the industrial and organisational environment
STATEMENT OF THE PROBLEM:
Through this project the researcher is trying to study the competitor’s strategies
towards Nandini milk and milk products. The project also tries to identify the various factors
of competitive strategies of Nandini milk and milk products. By this study the researcher
wants to identify the areas to be improved by conducting a survey among the general public
in Bangalore.
OBJECTIVES OF THE STUDY:
The principle objective of the study is to get interrelate the theoretical aspects with practical
thing that are moving in the industry, and studying the organisation as a whole. Some
important objectives of the study are:
 To get the practical exposure in the corporate world.

 To have a proper balance between the theory and practical knowledge
 To study origin, Growth, Vision, Mission, and status of the organisation.
 To study the functional departments, exist in the organisation.

 To evaluate the effectiveness of the organisation.

 To study the problem areas in the organisation.
 To provide some valuable suggestions to improve the efficiency in the organisation.
Assumptions of the study:
This study on the following assumptions:
 The data given by the officials are unbiased.

 The data collected from various sources are true.
Research methodology
Research in common parlance refers for search to knowledge one can also define
research as a scientific search for pertinent information on a specific topic random and marry
define research as a systematic effort to gain new knowledge we all possess some in the
mother of all knowledge and method that is employed to attain all the knowledge of the
unknown is termed as research. According to Clifford woody research comprises defining
and redefining problem formulating hypothesis or suggestions collecting organization data
detection whether they fit the required hypothesis. Research is then an organization
contribution to existing stock of knowledge for its Advancement is short the search for
knowledge through objectives and systematic method of finding solution to the problem is
research.

A research design is specifications of methods and procedure for acquitting the

information needed. IT is the overall observational pattern framework of the projects that
stipulates what information is to be collected forms which source, by what procedure.
Type of research
EXPLORARTORY RESEARCH
 Search of secondary data

 Survey of knowledge persons or experienced survey.
 Case study
CONCLUSIVE RESEARCH
 Descriptive research
 Longitudinal study
 Cross sectional study
 Experimentation
Sampling plan
1. Probability sampling
2. Non-probability sampling
Probability sampling
A probability sampling is choosing in a way that each member universe has a

known of being selected the most frequently used probability samples are simple random
sampling. Systematic sampling, Cluster sampling & Area sampling.
Non –probability sampling

In non-probability sampling the chance of any particular unit on the population

being selected is unknown since randomness is not involved in the selection process an
estimate of sampling error can’t be made but this doesn’t mean that find the finding obtain
from non-probability sampling is of questionable value if properly conducted their findings
can be accurate as those obtained from probability sampling. The three frequently used non-
probability sampling are judgments sampling convenience sampling quota sampling.
SOURCE OF DATA:
Primary Data:
Primary data refers to the data collected a fresh or at first hand by the researcher. In
this survey method, it is collected by mans of observation and structured questionnaire. The
questions are carefully framed in simple and direct words to enable easy response from the
respondents.
The study was carried out in Bangalore Rural & Urban for the period of 4 weeks. Both
qualitative and quantitative data was useful for interpreting the findings.
Primary data source was useful generally for implementation of data for various
programs and for practical usage. Questionnaire was prepared which includes both open-
ended and closed-ended questions. Questionnaire was administered personally. Scaling
techniques were employed for consumers’ opinion on change in price of Nandini milk & milk
products. The sample size of 30 random was chosen for survey. Use of simple statistical
technique like simple tabulation was used for analysing the data, which was tabulated and
classified. Whenever necessary data is produced in graphs and in picture form. Analytical
tests employed were found very useful in implementing results. The entire finding was
recorded and revived.
Secondary Data:
Secondary Data includes both external and internal sources. Internal data are company
profile and trade journal. External data include marketing management and consumer
behaviour textbooks.

a) METHOD OF DATA COLLECTION:
As shown above, the method of data collection was Questionnaire and Interview.
b) SAMPLING DESIGN:
i. Sampling Technique:
Simple Random sampling technique has been employed in this study.
ii. Sampling Frame:

The respondents include Businessmen, Professionals, House Wives Salaried
Employees, Agriculturists and others.
iii. Sample Size:

Totally 30 respondents were being surveyed out of each category.
iv. Sampling Unit:

Bangalore Rural.
v. Methodology of Analysis:
After the data had been collected in the form of questionnaires, it had been
tabulated according to the concept researched. Question-wise tables, charts and
inferences have been clearly mentioned in the analysis part of this report.
Inferences were drawn according to the score associated with various issues.
Implementation has been graphically mentioned in the comprehensive manner
for efficient and effective understanding.
Research Instrument (Questionnaire):

The questionnaire of a set of questions presented to respondents for their answers. It

consists of simple. Direct, unbiased wording. Questionnaire includes both open-end and
close-end questions.
Open-end questions allow respondents to answer in their own words. These questions
often reveal more because they do not constrain respondent’s answers.
Open-end questions are useful in looking for insight as to how people think in a certain way.
Close-end questions pre-specify the possible answers and respondents make a choice among
them, Close-end questions provide answers that are easier to interpret and tabulate.
Field Work:
The primary data collection (through questionnaire and
Observation) was done in the Bangalore Urban. The interview with the consumers
was about 5-10 minutes on an average.
Plan of Analysis:
The data collected from the questionnaires were processed and analysed. The
information was carefully handled and sorted out under various headings. To avoid
Wrong inference, certain factors like incomplete and dishonest answers were eliminated.
Each question was treated under separate heading and tabulated. To understand the marketing
strategy and industry product and customer satisfaction of target population in a better
manner their answers were analysed with reference to their personal data.
Limitations of the study:
 Because of official secrecy the managers of the company are not ready to give certain
data.
 Could not get sufficient time to interact much with the senior managers as they are always
busy with their works.
 The study is restricted to Bangalore rural only. The respondents are selected from in and
around Bangalore.
 The study mainly confines to the businessman and servicemen.

 The time factor being a major constraint, it has become very difficult to collect data
completely.
 The data given by respondents are limited to consumer’s own perceptions, knowledge,
feeling and awareness.
 The tenure of the project was insufficient and inconvenient to conduct the survey in a more
systematic manner.
 As the respondents were drawn from particular strategy of society. So, the generalization
of the outcome cannot be possible.
 Simple tabulation is used for analysing the data. Advanced statistical tools could not be
used to widen the scope of understanding as well as that of the project

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS:
Data analysis involves creating a series of observations into descriptive statements about
variables and / or inferences about relationships among Variables. Put more simply, data
analysis provides answers to questions we might want to ask for a set of data.
Respondents will sometimes rush through questionnaires in an almost random manner. This
tends to produce a number of inconsistent responses such as high-income category and a low-
paying job category, or unawareness of price that is changed frequently. Questionnaires
containing such inconsistencies has been examined carefully and deleted from the data base if
it appears that respondent were haphazard in completing them.
Now let us start analysing data for different types of observations in case of Milk and Milk
products now the answer required at conclusion.

TABLE-1
TABLE SHOWING GENDER
Male Female Total
20 10 30
Gender
Male Female
From the above table, it is found that 33% of the respondents are Female and 67% of
respondents are Male.
INFERENCE:
Finally, it is observed that maximum numbers of respondents are Male only.

TABLE-2
TABLE SHOWING OCCUPATION OF THE RESPONDENTS
Business Professional House Wife Salaried Agriculturist Others Total
8 10 3 5 2 2 30
Occupation
12
10
0
Business Professional Housewife Salaried Agriculturist others
Series 1
A random sample of 30 on different categories is selected based on simple random sampling.

Out of these samples most of them are salaried employees, hotel businessmen and other class
people are below middle aged, with monthly income ranging between Rs 5,000 to 10, 000.
The aim of the subject is fulfilled since all most all respondents are using milk and milk
products. Of course, in the reality sense milk is essential to each person.

TABLE-3
TABLE SHOWING AGE OF THE RESPONDENTS
20-30 30-40 40-50 >50 Total
09 13 5 3 30
Ages
14
12
10
0
20-30 30-40 40-50 50>
Series 1
From the above table, it is found that 43% of the respondents are in the age group of 30
- 40 Years, 30% of respondents are under the age group of 20 – 30 Years and the rest are 40 –
50 Years and above.
INFERENCE:
Finally, it is observed that maximum numbers of respondents are in the age group of
30-40 Yrs.

TABLE-4
TABLE SHOWING THE INCOME OF THE RESPONDENTS
<5K 5k-10K 10K -20K 20K> Total
3 5 15 7 30
Income in Rupees
<5 5k-10k 10k-20k 20k>
From the above table, it is found that 17% of the respondents having income of 5000 –
10,000 per month, 50% of the respondents having income from 10 k – 20 k, and 23% of the
respondents having income from 20k>. 50% of the respondents have income of between 10k
to 20k and rest having more than 20k per month.
INFERENCE:
Finally, it is observed that maximum no of respondents having income between Rs

10k -20k
Per month.

TABLE-5
TABLE SHOWING USAGE PERIOD OF NANDINI PRODUCTS
1Year 1-5 Years 5-10 Years 10 Years Total
3 8 15 4 30
year
16
14
12
10
0
1 year 1-5 year 5-10 year Category 4
year
From the above table it is found that 48% of the respondents are using the Nandini products
from 5 – 10 Yrs, 27% of the respondents are using it from 1 - 5 Yrs, 15% of them are using from more
than 10 Yrs and the rest are using it from less than 1Year.
INFERENCE:
Finally it is observed that maximum no of respondents using Nandini products From 5 – 10 Yrs

TABLE-6
TABLE SHOWING PRICE ECONOMY OF THE PRODUCT
Disagree Disagree
Agree Always Agree Sometime Disagree Total
Sometime Always
14 8 3 1 1 30
Chart Title
16
14
12
10
0
Agree Agree Sometime Disagree Disagree Sometime Disagree Always
Series 1 Column1 Column2
From the above table, it is found that 47% of respondents agree that the product is
economical, 3% of them disagree sometimes that the product is economical, 10% of them
disagree that it is economical and others agree always and disagree always.
INFERENCE:
Finally, it is observed that maximum number of respondents agree that the product is
economical.

TABLE-7
TABLE SHOWING DECISION FOR BUYING ON PRICE CHANGE
Buy Always Buy Sometime May not Buy Not at All Buy Total
20 5 3 2 30
Chart Title
25
20
15
10
0
Buy always BuySometime May not Buy Not at All Buy
From the above table, it is found that 67% of the respondents always buy the product if
there is a price change again, 17% of the respondents wish to buy some times, 10% of the
respondents may not buy and the rest of them would not buy at all.
INFERENCE:
Finally, it is observed that maximum number of respondents like to buy always

although there is a rise in price.

TABLE-8
TABLE SHOWING OPINION ON WORTH OF THE PRODUCT
Agree Agree Disagree

Disagree Disagree Always Total
Always Sometime Sometime
18 6 2 3 1 30
Chart Title
20
18
16
14
12
10
0
Agree Always Agree Sometimes Disagree Disagree Sometime Disagree Always
From the above table, it is found that 60% of respondents agree sometimes that the
product is worth, 10% of them disagree sometimes that the product is economical, 6.7% of
them disagree that it is economical and others agree always and disagree always.
INFERENCE:
Finally, it is observed that maximum number of respondents agree sometimes that the
product is worth.

TABLE-9
TABLE SHOWING OPINION ON SUBSTITUTING NANDINI
Yes No Total
18 12 30
Opinion
Yes No
From the above table, it is found that 60% of the respondents would not like to substitute
Nandini with any other brand if there is a rise in price and 40% of the respondents would like
to substitute Nandini.
INFERENCE:
Finally, it is observed that maximum numbers of respondents are not willing to

substitute Nandini products.

TABLE-10
TABLE SHOWING BRANDS PREFERRED FOR SUBSTITUTION
Dodla Arogya Jersey Fresh Milk Heritage Others Total
5 3 2 8 10 2 30
Chart Title
12
10
0
Dodla Arogya Jersey Fresh Milk Heritage others
Brand 1` Brand 2 Brand 3
From the above table, it is found that 27% of the respondents like to use fresh milk as a
substitute to Nandini, 33% of them like to use Heritage, 10% of them would like to use Arokya
and Dodla and rest of them like to use Jersy and Others.
INFERENCE:
Finally, it is observed that maximum no of respondents wants to use fresh milk as

substitute for Nandini.

TABLE-11
TABLE SHOWING OPINION ON CONTINUOUS IMPROVEMENT IN NANDINI

PRODUCTS
Yes No Total
23 7 30
TABLE SHOWING OPINION ON CONTINUOUS

IMPROVEMENT IN NANDINI PRODUCTS
Yes No
From the above table, it is found that 77% of respondents agree with the continuous
Improvement in the product & 33% of them disagree.
INFERENCE:
Finally, it is observed that maximum number of respondents agree that there is a continuous
improvement in the Nandini milk product.

TABLE-12
TABLE SHOWING OPINION ABOUT AVAILABILITY OF NANDINI MILK &

MILK PRODUCTS
Good Average Poor Total
22 6 2 30
Chart Title
25
20
15
10
0
Good Average Poor
Series 1 Series 2 Series 3
From the above table, it is found that 73% of respondent’s opinion is good, 20% of respondent’s
opinion is average & 6% of the respondent’s opinion is poor about availability of Nandini milk
& milk products.
INFERENCE:
Finally, it is observed that maximum number of respondent’s opinion is good about

availability of Nandini milk & milk products.

TABLE-13
TABLE SHOWING PREFERENCE OF PRODUCTS OTHER THAN MILK
Yes No Total
24 6 30
TABLE SHOWING PREFERENCE OF PRODUCTS OTHER THAN

MILK
Yes No
From the above table, it is found that 80% of respondents prefer other Nandini products
also & 20% of them disagree.
INFERENCE:
Finally, it is observed that maximum numbers of respondents are ready to buy other
Nandini products also.

TABLE-14
TABLE SHOWING OPINION REGARDING BRAND NAME OF NANDINI
Easy to Remember Difficulty in Remembering Total
27 3 30
Chart Title
30
25
20
15
10
0
Easy to Remember Difficulty in Remembering
From the above table, it is found that 90% of respondents give positive opinion
regarding the brand name of Nandini & 10% of them are having negative opinion.
INFERENCE:
Finally, it is observed that maximum numbers of respondents are given positive opinion
about brand name Nandini.

TABLE-15
TABLE SHOWING PROMOTIONAL STATEGIES
Advertisement Publicity Sales Promotion Other Total
8 15 4 3 30
Chart Title
16
14
12
10
0
Advertisement Publicity Sales promotion Other
From the above table, it is found that 27% of respondents came across Advertisement,
13% of respondents came across Sales Promotion & 50% of the respondents came across
Publicity & 10% of respondents came across others about Promotional Strategies.
INFERENCE:
Finally, it is observed that maximum number of respondents came to know about

the product through advertisement.

CHAPTER 5
SUMMARY OF FINDINGS

CHAPTER 5
SUMMARY OF FINDINGS
FINDINGS
 It was found that amongst the respondents the majority of Nandini consumers are
between the age group of 30-40.
 It is found that majority of the respondents have income ranging from 10k – 20k.
 It is found that the majority respondents are buying Nandini products from 5-10 Yrs.
 Through this survey the researcher finds that majority of respondents consider the
product economical.
 It is found that majority of respondents don’t want to substitute Nandini with any other
brand which shows the respondents brand loyalty toward the company’s products.
 Majority of the respondents feel that there is continuous improvement in the Nandini
products.
 It is found that majority of the respondents consider the attributes like value for money,
packaging etc. as very good, where as they feel quality factors should be given more
attention.
 It is found that consumers are ready to purchase Nandini milk & milk products even if
the prices are raised.
 Most of the respondents came to know about the product through Publicity.

SUGGESTION
 Most consumers are using Nandini Products from 5 – 10 Years are very loyal and the
company must build and improve the quality of their products to retain them.
 Reach of the product must be efficient and the response must be improved.
 Price must not be increased because many consumers want to substitute.
 There is threat of competition from many other brands and the company must try to
maintain good relationship with the consumers for surviving in the market.
 Consumers using Nandini Products have a wide-ranging income level. Therefore, the
products must satisfy each one of them
 Quality and attributes must be such that consumers must feel the products are
economical.
 There must not be a change in price in a short span of time.
CONCLUSION
The report was an endeavour to find out the Competitive strategy towards Nandini milk & milk
products. The study was tried not only to know the competitive strategy of Nandini but also towards
the different factors that affect the competitor analysis of the companies.
The study was successful in identifying and classifying the competitors from different strata in
the society and their competitive strategies in real life. It was also found out the different differ
competitive strategies have been adopted regarding quality, reach, worth, packaging, etc. Different
statistical tools and marketing research tools were implemented to find out the competitors.
This study also gives an insight that the BAMUL is now not facing the competition because it
already had covered more than 70% of the market and it is having their own loyal customers.
There are good promotional activities conducted by the KMF and at the same time there is a
good distribution network all over the Bangalore which helps to provide in time service to consumer.
The researcher wants to conclude his study that BAMIUL is a leading brand among the general public
in Bangalore and it should come up with more innovative ideas to retain its huge consumer base which
in turn help the organization to reap profit.

ANNEXTURES
QUESTIONNAIRE
I am ABHISHEK K M final year M.B.A 3rd semester student from Canara Bank
School of Management Studies Jnana Bharathi Campus from Bangalore

University conducting survey on “a study on challenges facing by competitors at
Bangalore milk union limited. (BAMUL).”
I kindly request you to spare your valuable time to answer this questionnaire
Thanking you, yours sincerely
(ABHISHEK K M)

NAME:
1 Sex:
Male Female
2 OCCUPATION:
House Wife Salaried employee
Agriculturist others
3 AGE:
20-30 30-40
40-50 () 50 & Above
4 Income per month:
<5000 5000 - 10000
10000 -20000 20000<
5 From how many years are you buying Nandini Milk product?
<1yr 1-5yrs
5-10yrs 10yrs<
6 Is the price of the product economical?
Agree always Agree sometimes
Disagree Sometimes disagree
Disagree always

7 Would you buy the product if the price would change again?
Always buy Buy sometimes
May not buy Not at all buy?
8 Is it worth paying so much for the product?
Yes No
9. Do you substitute Nandini milk & milk products with any other brand?
Yes No
10. Which brand would you prefer as a substitute?
Dodla Arokya Jersy
Fresh Milk Others
11. Do you think there is a continuous improvement in Nandini milk & milk products?
NO YES (specify)……………………………...
12. How is your opinion about availability of Nandini milk & milk products?
Good average poor
13. Do you prefer any other products in Nandini other than milk?
No YES (specify)…………………………….

14. How is your opinion regarding Brand name of the product “Nandini”?
Easy to remember Difficulty in remember
15. Have you come across with any promotional strategies of Nandini milk & milk products?
Yes No
If yes which are those?
Advertisement Publicity
Sales promotion other
Signature

BIBLIOGRAPHY
Websites:
 www.nandiniproducts.coop
 www.nandinimilk.com
 www.indianmilk.com
 www.indiandiary.com
 www.kmfnandini.coop

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A STUDY ON CHALLENGES FACING BY COMPETITORS AT BAMUL

LIST OF CONTENTS WITH PAGE NUMBERS

APPENDICES AND ANNEXURES 52 to 56

Department of Management Studies, CBSMS JB Campus, Bangalore University 1

Department of Management Studies, CBSMS JB Campus, Bangalore University 2

Department of Management Studies, CBSMS JB Campus, Bangalore University 3

FOUR BROAD CATEGORIES OF MARKET TYPES

 Many sellers, so many that firms are price takers

Department of Management Studies, CBSMS JB Campus, Bangalore University 4

Department of Management Studies, CBSMS JB Campus, Bangalore University 5

Department of Management Studies, CBSMS JB Campus, Bangalore University 6

Department of Management Studies, CBSMS JB Campus, Bangalore University 7

Name : Bangalore Urban, Rural & Ramanagara Districts

Co-Operative Milk Producers Societies Union Ltd

President : Mr. Appaiah.H

Managing Director : Sri D C. Nagaragaiah

Address : Dr. M H Marigowda Road, Dharmaram College Post,

Registration Number : An ISO 22000:2005 & ISO 9001:2000 Certified

Establishment : December 1975

Type of unit and Constitution : Small Scale Co-Operative Unit

Main Raw material : Milk

Auditors : Charted Accountants

Organisation Set Up : 52 Acres

Nature of the organization : Co-Operative

Business Volume : 2016-17 Turnover Rs.1.791/-Crores.

Department of Management Studies, CBSMS JB Campus, Bangalore University 8

“BANGALORE-URBAN & RURAL AND RAMANAGARA DISTRICT CO-

Department of Management Studies, CBSMS JB Campus, Bangalore University 9

The philosophy of this cooperative milk producer’s organization is to eliminate middlemen

In recognition to this efforts and achievements, the National Productivity Council

Department of Management Studies, CBSMS JB Campus, Bangalore University 10

 To organize Milk Producers Co-operative Society (MPCS) at village level and

Department of Management Studies, CBSMS JB Campus, Bangalore University 11

1. Nandini Pasteurised Toned Milk

Karnataka’s highest selling and Most Prepared Milk. Pasteurised

2. Nandini homogenized milk

Department of Management Studies, CBSMS JB Campus, Bangalore University 12

3. Nandini Double Toned Milk

4. Nandini Shubham pasteurized Standardized Milk

5. Nandini samrudhi pasteurised full cream milk

Available in 200g, 500g, 1kg and 6kg pouches and

7. Nandini spiced butter milk

Department of Management Studies, CBSMS JB Campus, Bangalore University 13

Available in 200ml sachet.

8. Nandini Shrikhand elaichi flavoured

Nandini Shrikhand is a traditional Indian sweet dish. It is made of

Available in 100g, 200g and 400g PP containers.

9. Nandini Shrikhand Mango flavoured

Nandini Shrikhand is a traditional Indian sweet dish. It is made of

Available in 100g, 200g and 400g PP containers.

10. Nandini Goodlife from Cow’s Milk-Toned Milk

Nandini Goodlife from cow’s milk-toned milk is UHT processed

11. Nandini Slim

Department of Management Studies, CBSMS JB Campus, Bangalore University 14

12. Goodlife UHT long-life milk

Available in 500ml and 1 litre Tetra Brick Packs.

13. Nandini Smart fortified with vitamins A+D

14. Nandini sampoorna

Sampoorna homogenised standardised UHT processed milk. Nutrient