Internship Report: An Organizational Study

INTERNSHIP REPORT
An organizational study At
MOTHER DAIRY, KOLKATA

Submitted in partial fulfillment of the requirement of the Bangalore University for the forward of degree in
Master of Business Administration

Submitted by Mr. Anuranjan Thakur Reg. No. 10XQCMA014 Under the guidance of Prof.Sumithra Sreenath
M.P. Birla Institute of Management Associate Bharatiya Vidya Bhavan No. 43, Race Course Road, Bangalore 1. August, 2011
M.P BIRLA INSTITUTE OF MANAGEMENT
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Student Declaration
I, Anuranjan Thakur (10XQCMA014) hereby declare that the internship report, an organizational study conducted at Mother Dairy, Kolkata submitted in partial fulfillment of the requirements of the Bangalore University for the Award of degree in Master of Business Administration is a bonafide work carried out by me under the guidance of Prof.Sumithra Sreenath, MPBIM, Bangalore. This report has not been submitted earlier to any other university or institution for the award of any degree/diploma. The contents of this report are based on the data collected by me at Mother Dairy, Kolkata under the guidance of Mr. K. P. Boral (In-charge Personal Department)
Place: Kolkata
Anuranjan Thakur
Date: 18/ 08/2011
Reg. No. 10XQCMA014
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ACKNOWLEDGEMENT
I have this opportunity to acknowledge the invaluable assistance, support and guidance extended by each and everyone who has contributed towards the successful completion of this project report. I would first thanks God almighty for giving me the wisdom and strength to undertake this project. I further express my deep sense of gratitude to Mr. Dhiman Sen, without whose help and support this project would not have been possible. I also express my deep gratitude to the management of Mother Dairy and Mr.K.P.Boral(In-charge Personal Department) for the permission, support and for the encouragement which they have provided for the successful completion this project. I would like to thank Prof.Sumithra Sreenath my internal guide for giving his graceful assistance and guidance in completion of this report. At last I would thank my parents and all my friends for their support and motivation throughout the project.
Date: 18/08/2011
Anuranjan Thakur
Place: Bangalore
Reg. No: 10XQCMA014
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TABLE OF CONTENTS
CHAPTER No.
PARTICULARS
PAGE NO.
1.
Introduction 1.1 Background of the study 1.2 Industry Profile 1.3 Company Profile 1.4 Vision, Mission and Objectives Organization Structure 2.1 Organization heirarchy 2.2 Management Relationship
5-16
2.
17-19
3.
Functional Areas 3.1 Finance Department 3.2 Marketing Department 3.3 Production Department 3.4 HR Department
20-42
4.
SWOT Analysis 5.1 Strength and Weakness 5.2 Opportunities and Threats 5.3 Problem Identifications and solutions Observations, Suggestions and Conclusion 6.1 Major findings 6.2 Suggestions 6.3 Conclusion Annexure(Financial statements) Questionnarie Bibliography
43-74
5.
75-79
6.
80-84
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INTRODUCTION
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1.1 Background of study

The Internship Study was conducted in MOTHER DAIRY KOLKATA from 18/07/2011 to 18/08/2011. The need to undergo this Internship Study is to fulfill the requirement of MBA degree course of Bangalore University. The training was undertaken during July and August and the main purpose was to know the practical implication and policies of the company, the theoretical aspects that we study during our course can be observed how exactly they are put into practice.
The main objective of undergoing this training is to get the practical exposure of the functional departments of the organization such as Marketing, HR, Finance, Production departments and also to study the inventory, cash and receivable at MOTHER DAIRY KOLKATA. During training I studied how the theoretical knowledge is practically applied in various departments. The internship undergone by me has helped me in getting practical exposure to the various departments of Mother dairy. The report traces the growth and development of the company and gives the selected outline about the services adopted by the company. The report also explains the values and gives a brief about the quality and financial aspects of MOTHER DAIRY KOLKATA. The study is to prepare the report on the internship training and submit the detailed and comprehensive report. This will help the company to assess its strength, weakness to take necessary action to improve the future growth.
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OBJECTIVE OF THE STUDY To understand the function of each department namely Personal (Human Rsource), Finance, Marketing and Production Department. To study working of various department of the organization in general. To identify strength and weakness of the organization. To identifying the effect of competition. To understand the concept of Working capital management. To suggest ways for better management and control of working capital at the concern.
1.2 INDUSTRY PROFILE

Fast moving consumer goods (FMCG) or Consumer Packaged Goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. The term FMCG refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years.
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FMCGs have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs such as meat, fruits and vegetables, dairy products and baked goods are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates.
The following are the main characteristics of FMCGs: From the consumers' perspective: Frequent purchase Low involvement (little or no effort to choose the item -- products with strong brand loyalty are exceptions to this rule) Low price
From the marketers' angle: High volumes Low contribution margins Extensive distribution networks High stock turnover
FMCG Products and Categories Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps); Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products; Household care fabric wash including laundry soaps and synthetic detergents; household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish;
FMCG IN 2006 The performance of the industry was inconsistent in terms of sales and growth for over 4 years. The investors in the sector were not gainers at par with other booming sectors.
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After two years of sinking performance of FMCG sector, the year 2005 has witnessed the FMCGs demand growing. Strong growth was seen across various segments in FY06. With the rise in disposable income and the economy in good health, the urban consumers continued with their shopping spree. Food and health beverages, branded flour, branded sugarcane, bakery products such as bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc, snack food, chocolates, etc.
Frequently replaced electronic products, such as audio equipments, digital cameras, Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc. coming under the category of White Goods in FMCG; FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India.
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then. For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. An estimated double-digit growth over the next few years shows that the good times are likely to continue.
With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG
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companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.
Indian Competitiveness and Comparison with the World Markets The following factors make India a competitive player in FMCG sector: Availability of raw materials: Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. Labor cost comparison
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Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets. Presence across value chain: Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc.
1.3 Company Profile

Ma! The first word uttered by a child. Mothers Milk, the infants first food enriched with all the vital ingredients-amino acids, vitamins, minerals, for growth and the most
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important of them all material love after the mother has provide the bay with nourishment for as long as possible. She takes over. MOTHER DAIRY KOLKATA makes the little infants first food an integral part of his/ her diet forever. Hence t he Mother is Mother DAIRY with the focus being the development of the rural milk producers. Mother Dairy Calcutta-a Government of Bengals project, was started under operation Flood II of National DARIY Development Board. It was set up initially to cater to the demand of the Kolkatas urban agglomeration spread over the Kolkata Metropolitan area, approximately 852 square Kms. Mother DAIRY is also reaching out to be consumers of other districts. The commissioning of the DAIRY started In July 1978 and the first Distribution Vehicle loaded with milk sachets rolled out of the DAIRY in the morning of 8th December 1978. Initially, the management of Mother DAIRY was looked after by the National DAIRY development Board. On 24th March 1982, then honourable Chief Minister Shri Jyoti Basu Dedicated MOTHER DAIRY CALUTTA to the rural milk producers and urban milk consumers of West Bengal. From then onwards, the story of Mother DAIRY is one of success after success. The Growth of the DAIRY Continued unabated.
Mother DAIRY safeguards the interest of the rural milk producers by encouraging cooperative movement & marketing the surplus milk available from the villagers, thus helping the milk producers to realize their own potential for organized endeavourer & creation of more rural wealth in the shape of Anand Pattern as profounder by Dr V Kurain, the Milk Man of India. In November 1996 the management of Mother DAIRY was taken over by West Bengal Co-operative Milk Producers Federation Ltd.
It is selling Milk and Milk products Like Misti doi, Flavored Yoghurt, Plain Yoghurt, Panner, Cow Ghee, and Packaged Drinking Water. Now it has started diversifying its activity by selling the produce of other cooperative, unioins of West Bengal and other states as Mother Dairy has a strong Marketing network. In the year 2000, Mother Dairy Kolkata received ISO 9002 certification and in the year
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2001 Mother dairy received HACCP certification. Mother Dairy has also received Environment Excellence Award(2000-2001). In the year October 2003 Mother dairy Kolkata received ISO 9001:2000 and the certification agency is SGS India Pvt Ltd. A renowned London based organization.
Consumer Awareness Program Over the last few years these programs have gathered momentum and success, Under this programs, school children are invited to the Dairy to give them the first hand experience of the activities inside dairy to inculcate in them the healthy habit of drinking milk everyday and to educate them on the importance of ensuring that the milk they drink is pure and has been hygienically processed Awards Given to Mother Dairy Kolkata 1987: National Productivity Award 2000: ISO Certification 2001: HACCP Certification 2002: First Environment Award
MOTHER DAIRY KOLKATA HERITAGE & TRADITION MOTHER DAIRY KOLKATA has first introduced poly pouch in Eastern India in year 1978. MOTHER DAIRY KOLKATA has first introduced loose milk selling through automatic coin operated booth first in Eastern India in the year 1980. MOTHER DAIRY KOLKATA has first introduced the highly perishable cultured milk product like misti doi and Yoghurts through pilfer proof cup under sealed condition having 6 days self life under refrigeration breaking the tradition of selling this product through earthen pot.
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MOTHER DAIRY KOLKATA has first introduced cultured milk products in Eastern India in most of the trains especially in Rajdhani Express, Coromondal express, Bombay Mail operation from Howrah and Sealdah.
MOTHER DAIRY KOLKATA has first received the National Productivity award in the Eastern India dairy industry. MOTHER DAIRY KOLKATA has first accredited the ISO 9001: 2000 Certification in the Eastern India dairy Industry. MOTHER DAIRY KOLKATA has obtained the HACCP Certification in the Eastern India dairy Industry. MOTHER DAIRY KOLKATA has first received the Environmental Excellence award in 2000-2001 in the Eastern India dairy industry.
MOTHER DAIRY KOLKATA (At a glance)

Name Address : MOTHER DAIRY : P.O Dankuni Coal Complex Dist- Hooghly, West Bengal Pin No: 712310 Date of foundation Total Area Build Up Area Milk Market share( in West bengal) Average Annual Turnover : 8 th December, 1978. : 10 Hectares : 8700 SQM (93612 SQFT) : 25% : 200 Crore
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MOTHER DAIRY KOLKATA

(Product information)
Own Products
Cow Milk, Toned Milk, Double toned Milk, Full Cream milk, Paneer, Misti Doi, Plain Yoghurt, Flavored Yoghurt, Rosogolla, Rajbhog & Packaged drinking water.
Traded product Installed capacity (Milk) Average Present Production
: :
Ghee, Paneer. 600000 Ltr/day.
: 400000 Ltr/day.
Installed Capacity (Misti doi & Yoghurt) : 2000 Kg/day. Average Present Production : 2000 Kg/day
1.4 MISSION, VISION AND OBJECTIVE OF MOTHER DAIRY KOLKATA

Mission: To sustain market leadership in the production and marketing of a variety of liquid milk and milk products with assured quality at an affordable price, covering all market segments and to maintain the growth, prosperity and unity of all internal and external customers.
Vision: With full dedication and team work, MOTHER DAIY KOLKATA shall strive to delight its internal and external customers through quality products and services. Create an environment where stake holders feel happy and system will be eco-friendly. Through innovation, continuous learning and consistent improvement achieve sustained growth and excellence.
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POLICY & OBJECTIVE OF MOTHER DAIRY KOLKATA

Quality policy Satisfy our customers with quality products and services. Achieve and sustain growth and excellence. Maintain a happy and fulfilling work environment.
Environment Policy Be reactive and conscious about various Environment regulation. Create and maintain a clean green belt in and around the dairy premises. Always keep our environment safe, free from pollution and continual sustainable development.
Quality Objective Provide regular and timely supply of milk and milk products at convenient distribution points under clean and hygienic condition for different segments of consumers. Provide remunerative returns to milk producers and other associations. Promote innovations, continuous learning and improvement.
Social objective Protect the rural marginal milk producing farmers from exploitation of profit earning middleman. Help them rear their cattle in hygienic condition there by increasing production of Milk. Provide wholesome milk to the customers in Kolkata and Bengal at a reasonable price throughout the year, right at their door step.
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ORGANIZATIONAL STRUCTURE
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2.1 ORGANIZATIONAL HIERARCHY

CGM DGM MANAGER DY MANAGER
ASSISTANT MANAGER
OFFICER
SUPRITENDENT
SR. ASSISTANT ASSISTANT WORKER
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2.2 MANAGEMENT RELATIONSHIP

Designation Profile
Chairman
Minister In charge Animal Resource Development Dept. Govt. of W.B
Vice chairman
Principal Secretary to the Govt. of W.B Animal Resource Development Dept. Govt. of W.B
Member Member Member
Managing Director, WBCMPF Ltd. Milk Commissioner Govt. of W.B State Director National Dairy Development Board Kolkata
Member-convener
Chief General Manager, Mother Dairy Kolkata.
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FUNCTIONAL AREAS
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3.1 FINANCE/ACCOUNTS DEPARTMENT
E.O MANAGER (1) E.O.D.Y MANAGER (1) E.O OFFICER (3) E.O SUPERINTENDENT (8) SENIOR ASSISTANT (5)
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TOTAL NO OF EMPLOYEES: 18
Net Profit for the financial years: Year Net profit 2005-06 (49657560) 2006-07 (140443042) 2007-08 25458292 2008-09 62428340
Graph representing the Net Profit of Organization
Net profit
100000000 62428340 50000000 0 2005-06 -50000000 -100000000 -150000000 -200000000 -140443042 -49657560 2006-07 2007-08 2008-09 Net profit 25458292
From the above the above graph it could be understood that the organization was in loss in the year 2005-06 & 2006-07. In further years the organization started earning profit which has been described in the graph. The financial position of the organization is good if we compare with the expenses. The cost of production is increasing year by year but the profit is also increasing but not up to that extent.
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3.2 MARKETING DEPARTMENT:

Mother Dairy Kolkata was set up to cater milk and milk products to the consumers of Kolkata and its metropolitan areas about 852 sq. Km but subsequently in the year 2000 Mother dairy is marketing milk and milk product in the town of Burdwan, Durgapur, Asansol, and in the Year 2002 Mother dairy is marketing milk and milk product at Midnapur, Haldia, Bankura, Arambug, Ranaghut, Krishnanagar, Bangaon, Basirhat, Diamond Harbour,Canning, Raychak etc, through its franchises. Mother Dairy has set up 208 coin operated automatic self dispensing milk vending booths (Mini Dairies) all over Kolkata and its metropolitan areas. It has 385 insulated Tank outlets and about 385 polypack outlets. Beside this all the reputed hotels, Railways, Airlines and Hospitals take milk and milk products from Mother dairy Kolkata.
Like any other agricultural commodity, there are regional and seasonal imbalances in the production of milk also. In flush season and in milk surplus areas, when excess milk is available, it is converted to Skim Milk Powder (SMP) and Butter Fat and then stored. During the lean seasons and in milk deficit areas, when the availability of fresh milk is low, to augment supply, SMP and Butter Fat are recombined without jeopardizing the
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goodness
and
nutritive
value
of
milk.
After chilling, the milk from the silos undergoes clarification, homogenization and pasteurization. Milk is passed through the clarifier at 40 o Celsius so that all extraneous matters are separated and removed
o
from
the
milk.
Homogenization is carried out at a temperature of 70 Celsius. It is a process by which fat globules in the milk, which have a natural size of 8-12 microns are broken down into much smaller sizes of less than 2 microns and evenly distributed throughout the milk. This reduces the tendency of fat to separate at and float the surface as a cream layer. This process The milk also is makes pasteurized at the 80o milk Celsius to more destroy easily pathogenic digestible. bacteria.
Finally, the milk is chilled to 4o Celsius and stored. The milk is now ready for travel to thousands of waiting consumers. Just prior to dispatch, the milk is glycol chilled to about 2 o Celsius and either automatically packed in polyethylene pouches or loaded in Mother Dairys fleet of Insulated road milk tankers to be delivered at the various distribution points.
Milk and Milk Products: Mother Dairys Milk is wholesome, Pure, healthy, and nutritious an important food for
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pregnant mothers, growing children, adolescents, adults, aged, and patients. It is fortified with Vitamin A, antidote to night blindness. Fresh milk procured from milk producers is pasteurized, clarified, Homogenized, processed, and packed and goes through stringent quality checks. Toned Milk Yoghurt. Cow Milk Full Cream Milk Double Toned Milk Misti Doi Ghee Paneer Plain Yoghurt Rosogolla & Rajbhog Packaged Water
Pictures of the products

Homogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U Per1000 ml ] Composition Milk Fat Milk SNF Nutritional Information [100 ml contains approx.] Added Vit A (I.U) Proteins [g] Carbohydrates [g] Fat [gm] Calcium [mg] Available in : Energy : 200 3.50 4.70 1.5 124 Poly Pouches [ 1/2 lts, 1 lts ] 46 K calories/100ml. Preparation of Coffee/Tea, preparation of Paneer. As it contains low fat. It is ideal source of nutrition for adults & aged people who are weight conscious. [%] 1.5 9.0 Pouch Consumer Price [Inclusive all taxes] Rs. 21.00/Ltr in Poly Pouch Rs. 10.50/Half Ltr in Poly
DOUBLE TONED MILK
Suitable For :
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COW MILK
Homogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U Per 1000 ml ]
Composition Milk Fat Milk SNF Nutritional Information [100 ml contains approx.] Added Vit A (I.U) Proteins [g] Carbohydrates [g] Fat [gm] Calcium [mg] Available in : Energy :
[%] 3.5 8.5
Consumer Price [Inclusive all taxes] Rs. 24.00/Ltr in Poly Pouch Rs. 12.00/Half Ltr in Poly Pouch
200 3.20 4.50 3.5 117 Poly Pouches [ 1/2 lts ] 62 K calories/100ml. Preparation of different Bengali sweet dishes, ideal for drinking purpose. [As it is rich- in flavored due to moderate fat content]
Suitable For :
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TONED MILK
Homogenised & Pasteurised, [ Enriched with Vitamin A 2000 I.U Per 1000 ml ] Composition Milk Fat Milk SNF Nutritional Information [100 ml contains approx.] Added Vit A (I.U) Proteins [g] Carbohydrates [g] Fat [gm] Calcium [mg] Available in : Energy : 200 3.20 4.50 3.0 117 Loose [ Any Qty From Mini Dairy/Insulated Tank] 56 K calories/100 ml. Preparation of Coffee/Tea, different Bengali Sweet Dishes, ideal for drinking purpose, also used for preparation of Paneer. [ As it is rich-in flavour due to moderate fat content.] [%] 3.0 8.5 Consumer Price [Inclusive all taxes]
No Pouch selling at present only in Loose milk Through Mini Dairy/IT/NonRefrigerated Booth
Rs. 21.00/Ltr Loose Rs. 10.50/Half Ltr Loose
Suitable For :
MISHTI DOI
Delicious Mishti Doi Composition [100 gm contains approx.] Milk Fat Milk SNF Sugar Natural Caramel [%] Consumer Price [Inclusive all taxes] Rs 10.00/100 gms 3.8 13.0 18.0 0.2
Available in : Energy :
100 gms packs through Polysterine Cup 158 K calories/100gms. Relish the palatable and soothing taste of Mishti Doi. Fortified with Vitamin A. It has excellent nutritional profile and food value. It helps in digestion and keeps one's system cool. Mother Dairy Mishti Doi is packed and shelled in pilfer proof cups in automatic packaging machine ensuring right quality and quantity.
In a Nutshell
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PLAIN YOGHURT
A Traditional Yoghurt Composition [100 gm contains approx.] Milk Fat Milk SNF [%] Consumer Price [Inclusive all taxes] Rs 9.00/100 gms 3.0 11.0
Available in : Energy :
100 gms packs through Polystyrene Cup 71 K calories/100gms. The secret of longer life of the hill tribes of Bulgaria for centuries was a daily diet of yoghurt. Yoghurt improves appetite, vitality and vigour, cures intestinal disorder and controls cholesterol besides having numerous other beneficial effects.
In a Nutshell
FLAVORED YOGHURT
A Traditional Sweet Yoghurt Composition [100 gm contains approx.] Milk Fat Milk SNF Sugar Permitted Synthetic Colors [ Food grade ] Added Flovours Available in : Energy : 100 gms packs through Polystyrene Cup 71 K calories/100gms. Mother Dairy Flavoured Yoghurt is a treat to your taste bud and is available in different delicious flavours like Vanilla, Pineapple, Green Mango, Chocolate, Strawberry and Pista. It posses all the benefits of plain yoghurt. Flavoured Yoghurt is also fortified with Vitamin A. [%] Consumer Price [Inclusive all taxes] Rs 10.00/100 gms 3.0 11.0 13.0
In a Nutshell
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PANEER
Made from fresh pure milk, vacuum packed for extra fresheness Composition Milk Solid Citric Acid Common Salt Nutritional Information [100 gm contains approx.] Milk Fat [gm] Milk Protein [gm] Water [%] Calcium [mg] Vitamin A [micro] Available in : Energy : 25 25 50 600 300 100 gms / 250 gms / 1 Kg [against Order ] 312 K calories/100gms. Direct consumption & for preparation of different delicious dishes. per 100 gms Consumer Price Rs 22.00/100 gms Rs 50.00/250 gms
Suitable For :
COW GHEE
Prepared from fresh Cow Milk having cooked flavour Available in [gms] 100 200 500 Energy : Consumer Price [Inclusive all taxes]
Rs 30.00 Rs 56.00 1Kg---
Rs 125.00 - Rs.230.00
900 K calories/100gms. Direct consumption & for preparation of different delicious dishes. Cow Ghee is the richest source of Milk Fat of all Indian Dairy Products. It contains Fat soluble Vitamins A, D, E & K that provide energy. Its pleasing flavour, aroma and palatability make it a desirable dietary component as well as valuable cooking Fat. From time immemorial Ghee is considered as a source of nutrient in Indian Diet.
Suitable For :
In a Nutshell
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PACKAGED DRINKING WATER
ISI Marked Packaged Drinking Water Available in [Ltr] 1/2 1 2 5 20 [jar] *Note Consumer Price [Inclusive all taxes]
Rs 8.00 Rs 12.00 Rs 20.00
- Rs 40.00 Rs 60.00 [jar is returnable, Jar can be retained against Security Deposit ] It is produced using reversed osmosis technology with multiple barrier filtration, ozonisation & ultra violet treatment under total aseptic environment. It is free from harmful chemical, bacteria & Virus.
In a Nutshell
Sales for the Year ending: Year Sales 2005-06 1833108057 2006-07 2080224425 2007-08 2207237525 2008-09 2298407148
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Graph representing the Sales

Sales 2500000000 2080224425 2000000000 1500000000 Sales 1000000000 500000000 0 2005-06 2006-07 2007-08 2008-09 1833108057 2298407148
2207237525
From the above Graph and datas it could be understood that the sales have increased every year which has converted the loss into profit.
COMPETITORS Amul Metro dairy Red cow Others
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Despite of being the first in the industry, and having the first mover advantage and the brand name, the sale has fallen down incredibly due to competitors like Amul ,Metro dairy , Red Cow and others. There is a need to revamp the company and position it all over again in the mind of the consumers. In doing so firstly the grievances of the distributors and the retailers were required to be solved in order to encourage them for push sales. The company will be able to understand its strengths, weakness, opportunities and threats. The survey report submitted by me will assist the company to take right decisions to increase the turnover and market share. PRICE EFFECTIVE FROM 2009 Retailers Price 20.00 21.10 25.80 23.00 18.00 Retailers Price 7.20 7.20 7.20
Margin (per ltrs) : Sl.No 1 2 3 4 5 Margin (per 100 gms) : Sl.No 1 2 3
Product Double Toned Milk Toned Milk Full Cream Milk Cow Milk Skimmed Milk Product
Distribut ors Price 19.65 20.75 25.45 22.65 17.65
MRP 21.00 22.00 27.00 24.00 19.00 MRP
Distributors Price 6.50 6.50 6.50
Mishti Doi Plain Yoghurt Favoured Yoghurt a) Vanilla b) Green Mango c) Chocolate d) Pineapple Paneer
8.00 8.00 8.00
17.50
18.50
20.00
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CURRENT SCENARIO Mother dairy has a market share of around 33 % in the branded sector in West Bengal where it sells 3.4 lakh litres of milk daily on an average and undertakes its marketing operations through around 51 distributors and around 600 retailers in Kolkata itself. It has a huge advantage over its competitors as it is the only player when it comes to sale of loose milk through token. Before the entrance of competitors like Amul ,sale of loose milk through Mother Dairy booths was around 35 % of the entire sale in branded segment , when Mother dairy was the only player in the market. However since last five years the sale is continuously declining and presently it is just 8-9 %.
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Advertisement and Promotion by Mother Dairy

On the marketing front, Mother Dairy says it's trying to take its product campaigns and Communications to a higher platform. For instance, in the case of milk, the campaigns do not talk about the obvious benefits - milk is good for health, it has calcium and so on - but rather it targets children and are created around ideas such as "The country needs you, grow faster". As far as products such as butter, cheese and ice creams go, the campaigns have been created around "taste". For butter again, the focus is on children. "Amul butter may be selling the most, but the advertising and promotions are almost always targeted at adults," points out an analyst citing Amul's popular Utterly-Butterly campaigns. Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed by kids, the company wants them to sit up and take notice of its butter. Makkhan Singh, a sturdy jovial cow (a cartoon character) has been made its brand ambassador. While Mother Dairy has been carrying out school programmes - games and activities involving Makkhan Singh in Delhi, it has plans to take such activities to Mumbai and Kolkata as well. It also runs a gaming website on the character to attract children. Equity
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and empathy are being built for the brand, the values for which it stands, and the various other Mother Dairy products, which draw their core values from Mother Dairy milk. It's cheese for children again. A couple of months ago, Mother Dairy carried out a retail activity: "Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invited for a photo op - dressed as superheros - through Polaroid cameras; and the framed photograph was presented to them. The activity was carried out in about 150 outlets in Delhi and Mumbai, with about 20,000-25,000 snaps being taken. It claims that the exercise resulted in better ties with retailers. A positive response made Mother Dairy to repeat it in Kolkata as well. Clearly, Mother Dairy has aggressive plans. But, strong regional brands and other co-operatives will continue to give it tough competition. It will not be a cakewalk anymore.
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3.3 PRODUCTION DEPARTMENT

GERNERAL MANAGER
SR MANAGER (MFG.)
DY MGR (PROD&MFG.)
DY MGR (ULITIES)
ASSTT.MGR (SAFETY, HEALTHY & ENVIROMENT)
SR OFFICER(Thermal)
SR OFFICER (ELECT.)
SR OFFICER (AUTOMATION)
PRODUCT UNIT CO-ORDINATOR
SHOP FLOOR ENGINEERS & WORKERS
PROCESS OF MILK PRODUCTION

1) Milk Procurement: - Mother Dairy sources its requirement of liquid milk from dairy co-operatives and producer institutions. Milk is received from farmer cooperatives through insulated tankers at 2C temperature in order to retain its freshness.
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2) Milk distribution: -Tankers in the morning and in the evening bring in milk from the regional collection centers. After collection the same tankers are utilized for the delivery of the processed milk to the distributors. Mother Dairy has about 51 Distributors in the city of Kolkata. Each of these LAD s(Local area distributor ) place their demand by raising an invoice one day in advance. The demand is also calculated using the Calendar Scheme, in this depending on the pre-calculated seasonal demands the outlets place their orders accordingly. In order to satisfy immediate demand, 20 to 25 tankers are provided with a buffer stock of 500 litres each day so that they can be mobilized to cater the demand in an area. To coordinate its operations all the tankers are equipped with HAM radios. Distribution Channels: a) Token Distribution: Also, termed as Lohe ki bhains (metal buffalo), is an automated milk vending machine. b) Distributors: The packaged milk is distributed via the distributor network throughout the city.
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Processing At mother dairy, the processing of milk is done by process automation whereby state of the art microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/reliability and safety. There are four ways of milk processing Firstly, Clarification, in which milk is spun at very high speed, removing all dust particles that are invisible to the naked eye. Secondly, Standardisation which help to maintain uniformity by raising or lowering its fat and SNF (solid not fat) percentage to a desired levels, so as to deliver milk to consumers as per prescribed PFA norms. Thirdly, it is Homogenization which improves palatability of milk and Finally, Pasteurization, which kills all pathogenic bacteria present in the milk and thus making it safe for consumption. Quality Control Stringent quality control methodologies are employed in Mother Dairy. The milk is tested for adulterations and quality at the time of collection from the farmers. The Milk that comes from the collection points to the Mother Dairy plant is ensured to have a temperature of not more than 4C and is subjected to 15 product and quality checks. The Milk quality is checked repeatedly after each processing phase and the temperature is judiciously maintained less than 4C always. Before the milk leaves the plant for the delivery/distribution outlets the milk is tested again. The temperature of milk in the delivery trucks is always maintained less than 4C. All the trucks that deliver milk have specified guidelines to bring back 100 litres of milk after distribution. This is done in order to test the delivered milk and to ensure that the tankers are not adulterated during distribution.
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Since all the employed processing procedures are automated, no contamination by human hands takes place. To ensure milk freshness the collection and distribution points are always chosen such that the travel time between them is always less than 36 hours. Out of the total production about 9% goes directly to the institutions ,23% is the loose token milk and the rest is distributed through LADs.
Recently State Govt. faces crisis about the production of Mother Dairy. Though there is the demand of this branded dairy product, the production declines it rate. The cost of production is increases day by day but State Govt. oppose to increasing of price rate. Thus for prevent their loss they have to decrease their production.To make a decision Animal-Wealth Minister Mr. Nure Alam Chowdhury will meet with CM very soon. In 1996 State Govt. took the authority of Mother Dairy from National Dairy Development Board. The daily demand of milk in this State is 11 lakhs litre; Mother Dairy had produce 3, 80,000 litres till some days ago but now they are producing 3, 50,000 lire. The decreasing in production brings other problems like machinery and working problems.
Where the other Pvt. Dairy product increases their selling price, Mother Dairy cant do this. As because they could not increase their selling price, they have to decrease their production volume. We hope for the right step from our Govt. to handle this problem and a fruitful solution by which this Brand group gets their profit and common people also get their needy product at reasonable cost.
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3.4 HR DEPARTMENT
HR HEAD
MANAGER
D Y MANAGER
OFFICERS
SUPERVISORS
Total no of Employees: 18
HR Functions & Responsibilities
The function of Hr department starts with recruitment and ends with retirement. Manpower planning Recruitment & placement Wages & Salary Welfare activities
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Safety of the employees Career development Training & development Maintaining Industrial relation Time office management Disciplinary Process
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SWOT ANALYSIS
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4.1
STRENGTH
Low operational costs Presence of established distribution networks in both urban and rural areas Presence of well-known brands in FMCG sector Financial position is very sound. The company is equipped with wide range of products. It has good research and development facilities. Good infrastructural facilities.
WEAKNESS
Low exports levels "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market. Unions Lack of work culture in terms of punctuality and meaningful discussions. Lack of support from the top management. Lack of quick decision ability. Dependency on Govt. for taking decision.
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4.2
OPPORTUNITIES
Untapped rural market Rising income levels, i.e. increase in purchasing power of consumers Large domestic market- a population of over one billion. Export potential High consumer goods spending Scope of increasing the sales by the mean of advertisement and promotion. Huge availability of Funds and Reserves.
THREATS
Mother dairy has got stiff competition from competitors. Major threats from political condition of the nation and changing of rules and regulation. Changes in economic condition, Inflation and Deflation.
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4.3 Problem Identification and Solution in a specific area:

RESEARCH REPORT ON:
Consumers information seeking behavior while Purchasing Milk in Kolkata
Objective Primary: To analyze the factors which influence the purchase of Milk and milk product in Kolkata.
HYPOTHESIS : Null Hypothesis (H0): The Factors does not influence the buying behavior of consumer while purchasing Milk and Milk product. Alternative Hypothesis (HA): The Factors does influence the buying behavior of consumer while purchasing Milk and Milk product.
RESEARCH OBJECTIVE: To identify the issues related to Mother Diary retailers. To study Mother Dairy strategy vis--vis competitors. To study the distribution channel in the retail chain of Mother Diary. To cover up SOME PARTS OF Howrah district and get the retailers as well as consumers feedback. To keep track of the daily sales of the retailer in the above mentioned region.
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To add up new out retailers in this area. To find out short term problem in the region that can be sorted out. Lets see how can these task be managed-
Suggesting viable recommendations to the area, the concept of consumption may be understood to have either of two related meanings, both involving the notion of an objects disappearance or transformation. In economic terms, consumption of an object may be considered to have occurred when it has been removed from the market by some exchange mechanism, such as when a transfer takes place between a seller and a buyer of a good. The more commonly understood meaning of consumption is it physical meaning having been taken. It is this latter meaning which applies in this characterization methodology. Some other important definitions are: Dairy Product: A dairy product shall be defined as milk or any product derived from milk. With in the general class of dairy foods, different products will be differentiated by their physical composition or from, or where the market or consumer differentiates them. Consumption pattern: The combination of products consumed the frequency of their consumption and the quantities consumed. Mode of consumption: The manner in which the dairy product is consumed of used, e.g. milk may be taken directly or in tea and either cold or warm; butter may be used as a cooking fat, an edible spread, or a cosmetic. Regulated Market : A market in which government exercises control, for instance through price regulation, mandatory standards of hygiene, location-specific marketing licenses, etc. Unregulated Market : is here defined as one which effectively operates beyond the control of governments and is for all practical purposes self-monitored, such as in dairy markets dominated by over-the-fence sales to neighbors. Strategies Adopted Directly questioned retailers and distributors. Interviewed consumer and asked about there test and preference. Checked on the commotion provided by competitors.
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Personally visited prospective retailers . Made analyses of the competitors product.
METHOD IN SHORT Methodologically, marketing research uses the following types of research designs: Based on questioning: Qualitative marketing research: Generally used for exploratory purposes-small number of respondents- not generalizable to the whole population- statistical significance and confidence not calculatedexamples include focus groups, in- depth interviews, and projective techniques. Quantitative marketing research: Generally used to draw conclusionstests a specific hypothesis- uses random sampling techniques so as to infer from the sample to the population- involves a large number of respondents- examples include surveys and questionnaires. Techniques include choice modeling, maximum difference preference scaling, and covariance analysis. Bases on observations: Ethnographic studies: By nature qualitative, the researcher observes the social phenomena in their natural setting- observations can occur cross sectionally( observation made at one time) or longitudinally (observations occur over several time period)-examples include productuse analysis and computer cookie traces. See also ethnography and observational techniques. Experimental techniques: By nature quantitative, the researcher creates a quasi- artificial environment to try to control spurious factors, then manipulates at least one of the variables- examples include purchase laboratories and test markets. Researchers often use more than one research design. They may start with secondary research to get background information, then conduct a focus group( qualitative research design) to explore the issues. Finally they might do a full nation-wide survey( quantitative research design) in order to devise specific recommendations for the client.
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PRIMARY DATA Primary data was directly collected from retailers and consumers though a questionnaire. SECONDARY DATA The secondary source of all the daily sales record of all distributers.
CONSUMER BEHAVIOR Consumer behavior is the study of when, why, how, and where people do or do not buy product. It blends elements from psychology, sociology, social anthropology. It attempts to understand the buyer decision making process, both individually and in groups. Its studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand peoples want. It also tries to asses influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct rolls of users, payer and buyer. Relationship marketing is an influential asset for customer behavior analysis as it has a keen interest in the re discovery of the true meaning of marketing through the reaffirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare function. Each method for vote counting is assumed as a social function but if Arrows possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strong pare to optimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristics of social functions are identification so the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in min, the productive system is considered from its beginning at the production level, to the end of the cycle. Keeping all these things in mind I have concentrated over what the dealers , retailers and customers have said.
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DATA ANALYSIS AND INTERPRETATION For Data collection, some points have been focused from the people with whom the matters were discussed. I have interpreted these points in graphical presentation and made some analysis over the Data collected. These are as followsA. Satisfaction Level; 1) Poor- 48% 2) Average- 38% 3) Good- 10% 4) Very Good-3% 5) Excellent- 1%
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Analysis : According to the graph , the satisfaction level of user of Mother Dairy Milk is not so much hopeful for the company . It shows a decreasing type of satisfactory level for this kind of feedback company should be concerned about their quality control , supply and distribution channel , dealer and retailers demand etc. to hold their market because customer satisfaction is the only way to sustain market status . B. Satisfaction level with their regularity maintained in supply 1. Pour 15% 2. Average- 60% 3. Good- 20% 4. Very good- 3% 5. Excellent- 2%
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Analysis : In case of supply, mother dairy has done a good job in areas nearby production plant. But in far distance the supply chain though regular still dealers and retailers are not to much happy because the source distributor is not able to meet emergency demand and sometimes regular supply is also interrupted due to random reasons.
C. Inspection Regularity and Response Satisfaction 1. No visit- 2% 2. Rarely visited-10% 3. Average Visit- 45% 4. Regular Visit- 30% 5. Regular visit and quick action- 13%
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Analysis: Inspection from Mother Diary is satisfactory near the Kolkata region and after wards in between places away from plant the inspection is not too much regular and in some cases its rare and the response to the problem is not also satisfactory. The quick response to solve the problem overall is not regular, so the problems of dealers persist. Inspection from problem solving unit is a big demand and its points out the root cause of dissatisfaction.
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D. Satisfaction with the commission rate1. Not at all satisfied- 35% 2. Just satisfied- 50% 3. Satisfied- 12% 4. Happy with commission-3%
Analysis: Commission is a big deal for any kind of fast moving goods sale. In every steps of chain, dealers or retailers are heavily concerned about this. According to our research most of the people related to it, are deeply irritated with the marginal commission rate of the milk products of mother Dairy in comparison to other companies in the market like Amul, Metro etc. They keep a big margin. The yearly offer for the end supplier are lesser than the other companies. In some cases it is near about absent. So old dealers and suppliers due to brand loyalty try to keep themselves happy with less
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commission as they have big market. But new users are not at all happy with that. The linemen deserve and thus expects yearly bonus and other advantages, which are not possible for the dealers to meet up their demand as their own margin is very less. E. Demand of Products other than Milk 1. Curd 45% 2. Ice cream 20% 3. Water 10% 4. Butter 15% 5. Ghee 10%
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Analysis: Market demands milk of course, but in the Nadia and some areas of 24 pgs (N) district milk is the only supply from Mother Dairy, but the market does have different other products apart from milk too. Other companies re aware of that and they are trying to capture the side market. So if company doesnt consider this demand they will lose a good market of these products. Calcutta Mother Dairy is supplying milk as well as other products in Kolkata region but not concerned about this in the areas where I have conducted my project. F. Percentage of customer loss in 2010 due to competition in comparison with 2009 (information from 5 dealers)1. 5% - 20% ~ 5% 2. 20% - 35% ~ 40% 3. 35% - 50% ~ 30% 4. 50% 65% ~ 15% 5. More than 65% ~ 10%
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Analysis: Its clear from the survey that during last one year, due to high scale competition the demand for Mother Dairy milk has been reduced. There are many reasons for that which have been stated in the other analysis and afterwards in the main compact report. For this, customers have diverted their choice to other brands. Most of the dealers have lost customer in minimum 20% - 35% range. Some serious loss of market have been reported even in nearby area of the distribution source. More than 65% customer loss is also there. Below, the reduction has been shown in curve to make the situation more clear.
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G. Longevity of Milk of other companies in comparison with Mother Diary in normal temperature. 1. 1 to 2 hours 10% 2. 2 to 3 hours 25% 3. 3 to 5 hours 35% 4. 5 to 7 hours 20% 5. More than 7 hours 10%
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Analysis: Mother diary milk product longevity is less than other company milk product longevity because , Mother Diary milk contains less milk powder than that of other companies . And this leads to less sustainability than other. If properly not preserved, milk is spoiled . So, Mother Diary milk longevity time is lesser than other companies milk product longevity. H. Order frequency change in last one year among 5 dealers-
N.B- All readings are in percentage.
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Analysis: Order Frequency of no. of crates of milk from retailers have been lessened by the time of 2009 and 2010 in almost 90% cases. According to the dealers comments, its found that they have been compelled to cut their order from company short due less demand from retailers. It has happened due to entry of some other strong brands. Tea stalls are holding a good market of milk. As other brands have some tea friendly milk type, they are now in demand. I. Satisfaction level about clarity of payment and other calculations1. Poor- 15% 2. Average- 30% 3. Fair- 45% 4. Very Good- 7% 5. Happy enough -3%
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Analysis: We have got from the research that clarity of payment and clarity of other calculations have varied from person to persons. With the distributor some dealers have good terms in relation to this matter and thus have no complaints. But in some cases we have got some different pictures too which is hampering the business of the company. Its a matter of concern. This should be taken care of by the company.
J. Dealer meeting reduction. 1. Year 1996-1998->5% 2. Year 1999-2001->10% 3. Year 2002-2004->12% 4. Year 2005-2007->20% 5. Year 2008-2010->53%
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ANALYSIS:- From the 2 years frequency stat. data, we can observe that the regular Meeting in between administration & dealers used to take place in regular interval during 1996 around years, but the rate has been slowly reduced afterwards & during 2008-2010 time period there is a steep rise in reduction rate, which is a big concern for dealers & retailers. Their demand is unheard & overlooked by administrative personnel. K. According to you which is the main reason for loosing the market share of mother dairy milk product at Howrah district. 1. Quality of product decreasing day by day 45%. 2. Competitors (i.e. Amul, Metro Dairy, Red cow etc) improve day by day 5%. 3. Low profit margin comparison with competitors 15%. 4. No promotional activity comparison with competitors 30%. 5. Poor marketing strategy 5%.
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L. Do you have your own transport facility to deliver the products? a. Yes 30%. b. No 70%.
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ANALYSIS : Clearly its a tough job for the dealers and others in the chain to handle the smooth flow of distribution if they dont ha ve their own vehicle. But in region lacking of proper transport system in between dealers and distributor is hampering the task of reaching milk timely and safely.
M. Overall market grip of mother dairy along with other companies in that areaa. Mother dairy-20% b. Amul-40% c. Metro dairy-25% d. Red cow-10% e.Others-5%
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Chi-Square Test: (O-E)2 (O-E)2 E 361 64 576 169 81 121 3721 (O-E)2 E 1.215488 0.215488 1.939394 0.569024 0.272727 0.407407 12.52862 17.14815
Factors Taste
Observed Values(O) 316
Expected Values(E) 297 297 297 297 297 297 297
Quality 305 Health & Hygiene Packaging 310 Availability 306 Price 286 Density 236 321
Level of significance: 5% Degree of freedom: 6-1 = 5 2 tab is 11.143 Calculations: 2 = (O-E)2 E = 17.14815
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Conclusion: Since, calculated value of 2=17.14815 is greater than the tabulated value, H0 is rejected. HA is accepted. i.e., The Factors does influence the buying behavior of consumer while purchasing Milk and Milk product.
Ranking Method Data Sum of Taste Sum of Quality Sum of Health &Hygiene Sum of Packaging Sum of Availability Sum of Price Sum of Density Total 316 305 321 310 306 286 236 Ranking 6 3 7 5 4 2 1
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Total
350
300
250
200 Sum of Taste Sum of Quality Sum of Health Sum of Packaging Sum of Availibilty Sum of Price Sum of Density
150
100
50
0 Sum of Taste Sum of Quality
Sum of Health
Sum of Packaging
Sum of Availibilty
Total Sum of Price Sum of Density
Data
According to this method we can say that Density influences customers the most followed by Price, Quality, Availability, Packaging, Taste and lastly Health and Hygiene.
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Distribution of respondents based on Usage Milk usage Tea & coffee Drinking Other usage Tea & coffee + Drinking Grand Total
NOS.
20
40
35
100
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Limitations: Sample size of 100 is insignificant compared to the large Mother dairy consumers present Time and money constraint We are under the assumption that whatever information is given by the respondent is true This study is based on specific geographical locations
Suggestion: Mother dairy is the leading brand because of the features provided by it and the competitive pricing. Also it is the most popular brand as per our research. Density of the milk should be improved Price as compared to other competitive brands is very low, hence to increase the profit margin the price can be increased. Availability should be increased because the demand is high. Taste can be improved.
Further research: Our further research can be done on finding the reasons how the competitors (Amul, Metro) has managed to increase their market share. We can understand what is lacking in the companies Strategies.
CONCLUSION
The final outcome of the project is that the parameters which the sale of Mother Dairy are price,density,packaging, quality,taste and flavor, health and hygiene, irregular supply and lasting problem of Milk . Milk market is totally unpredictable market and the organization should be over- cautious of any complaints that come into milk as it includes the sentiments of a mother for her kid and she would not prefer to give anything to her kid which she is not satisfied. Company should not take risk with the quality for sure. The lesson they should remember the only principle of business that the ultimate process of gaining profit is to please the customer with the best effort the company can take. I render this solution to the company. If the problem in system become critical too much critical the perfect and emergency recovery can solve the problem.
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SUGGESTION
As the Research report says In Retailer & Dealers view, some of the problems (Thin quality, milk gets spoiled (specially DTM, leakage problem, less replacement facility, supply chain problem, commission problem, pasting & printing problems, Complete absence of advertisement etc.) are mainly important. They think the marketing officer or marketing executive and the administrative system have become old , the system is not able to cope up with the standard of todays other new companies in market like Amul. They think some thing is suspiciously happening (Product cheating) in the supply chain process. They feel customer relationship should be better. Neither it will declaim. The marketing officer or marketing executive dont visit for inspection regularly and if visited ,no further results are produced. So they should visit the retailer, dealer, and different booths regularly and take quick steps to solve the problems. All the retailer, dealer want advertisement & promotion for people awareness where other brands are capturing huge market by promotion. Even new companies like Red Cow has got market demand due to huge promotion. Some dealers advised to provide some scheme or gift for linemen in a year. Other companies have taken this step. Some of the retailer or dealer wants to be authorization but they dont get opportunity. Some of them has huge potentiality to capture market but they are not provided co-operation from the company. Company is still dealing with long supply chain with single line distribution Some retailer dont get much supply but there is market of Mother Dairy.
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Insufficient supply. According to sources its reported that 100% replacement is sent to dealers or retailers but for unknown reason they dont get more than 50% of it. So investigation is needed in distribution and supply chain level. Chalan/voucher/sheet must be provided in hand by the driver and relation in terms of financial as well as behavioural should be fair and clean. It must be ordered if found absent Direct complaint telephone number should be provided for them and quick response is necessary All the subsequent notes must be taken care of soon to run in same pace with other Giant companies.
I can suggest the company to convert every NO to YES and their complaint should be taken care of. This is the gist of the every problem I have got from the people over whom I have run my research. Solving these, Market will be a bit more to companys side.
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OBSERVATIONS, SUGGESTIONS & CONCLUSION
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5.1 MAJOR FINDINGS

One of the most important finding is that there was lack of skilled people. The authority to take decision lies in the hand of Government which leads to take lots of time in decision making. There is no proper utilization of fund. Scope of expansion is high but the steps are yet to be taken. Prices of the milk and milk products were low as compared to the competitors. People are unaware of the product and the services provided by the organization. Unionization is there in each and every part of West Bengal and Mother Dairy Kolkata is affected by union; which some becomes a threat for the development process and sometime act as remedy for the workers.
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5.2 SUGGESTIONS
The recommendations for the company for further growth and profit are as follows: Mother dairy should come up with schemes for customers along with retailers as it would be a real boost to the sales and also it will help the company to get back its lost customers During the survey it was found that many of the retailers were uninterested because they were concerned about the storage of milk. Instead of refrigerators if dry ice boxes can be supplied free of cost, sale would be increased. Also it would be economical and convenient. Later, if the retailer drops out, the box can be collected back. It was seen that the price of the largest selling variety of Mother dairy which is cow milk is Rs 24/ltr , and the competitor product of Amul is priced at Rs 25/ltr. Thus the price can be increased and thereby margin of the retailers can be increased Price is not a major concern for the consumers when it comes to a necessity like milk so the price can be increased by a rupee or two and the quality can be improved Mother Dairy is ISO and HACCP certified. The consumers should be explained about it through advertisements in order to make them aware If MD can do certain promotions as its competitor AMUL does, then it can attract sales. Promotion with the help of boards, hoardings etc. and also it can advertise in radio It was found during survey that Mother dairy milk gets spoiled quickly, thus a preservative known as costic which is used by Amul can be applied to produce milk. In order to improve and maintain quality, total quality management measures should be appointed. It was seen that due to lack of fixed percentage of raw milk mixed, the quality gets hampered and remain unsteady. The extra milk procured should be used for production of milk products which are in short supply and raw
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milk should be proportionately used in milk production The smell in milk is because of the usage of skim milk powder beyond a certain point of time, this should be looked into by the manufacturing department and alternative measure should be used The company should try to adopt a relatively short period incentive system in order to make it more friendly and achievable Mother dairy should come up with a scheme for consumers like discount on Mother dairy Ice cream or any other product on supplying empty pouch packets of Mother dairy milk Differential margin should be given by the LADs to the retailers depending upon the location and sales LADs should be directed to supply milk to small retailers according to their preference of time ,sometimes late by 6.30 -7.30 LADs should supply milk through cycle vans and small trolleys also like competitors to areas where trucks cannot go Factory visits helped consumers a lot in understanding the product. LAD should organize the same with the help of MDC officials. Supply of the milk and milk products are very less which results into deviation of customers from MD products to other products. The organization should think of reducing the cost of production which will ultimately lead to in the profit. The company has huge amount as saving in bank which should be used for further investment.
The organization should plan to expand its business to other areas of West Bengal. Market research should be conducted frequently which will help the organization to understand the requirement of the consumers.
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CONCLUSION
It could be said that the organization has huge scope of expansion which can help them to increase there business activities throughout the State. It is a Government organization so it cant always work for generating profit only; it has to look at the society also. And this is the only reason the prices of the milk and milk products are not increased.
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Annexure (Financial statements) Questionnaire Bibliography
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Balance sheet as on 31st March 2009

Particulars Sources of Fund Reserves & surplus Loans I II 586072609 107954860 694027469 Application of fund Fixed asset Current Asset, Loan & Adv. 1. Inventories 2. Sundry Debtors 3. Cash & Bank Bal. 4. Other Current Assets 5. Loans & Adv. VII 36961569 914563988 30208978 851535359 V VI IV 678831846 6583951 177093871 15092751 782504018 6820515 27445898 4555950 III 65177477 66650252 523644268 21804039 738448307 Schedule 31.03.09 31.03.09 31.03.08 31.03.08
Less: Current Liabilities & Provision 1. Current liabilities 2. Provision VII 257435498 28278498 285713996 Net current Asset 628849992 694027469 153527028 26210276 179737304 671798055 738448307
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Profit & loss A/c For the year ending 31st march 2009
Particulars INCOME Sales Other income (Increase)/Decrease in stock of finished goods & purchased stock 2430555281 EXPENDITURE Raw material consumed Milk commodities & other Other purchases 744305218 1133679471 34929333 1912914022 Operating Expenses Period adjustment Depreciation Interest 440370631 752543 7992787 6096957 2368126940 Profit/loss for the year Bal. Brought from the previous year Bal. Carried from the previous year (120543001) (182971342) 62428341 (182971342) 626360406 1126685043 36179464 1789224913 403695092 856329 8970945 18248642 2220995921 25458292 (208429634) 2248454213 2403797511 27016236 (258466) 2207237525 38839065 377623 31.03.09 31.03.09 31.03.08 31.03.08
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MOTHER DAIRY KOLKATA

CONSUMER FEEDBACK FORM
CONSUMER PROFILE:1. 2. 3. 4. 5.
NAME : ADDRESS : PHONE NO (OPTIONAL) : AGE (YRS) : OCCUPATION :
CONSUMPTION LEVEL AND AVAILABILITY:1. 2. 3. 4.

MILK CONSUMPTION PER DAY: 250ML/500ML/1L/MORE THAN 1L FREQUENCY OF REQUIREMENT: EVERYDAY/EVERY ALTERNATE DAY/ONCE OR TWICE IN A WEEK HAS YOUR FAMILY CONSUMPTION INCREASED/DECREASED OVER THE PAST FEW MONTHS? YES/NO DO YOU GET MD MILK FROM : AUTHORISED OUTLET/FREE OUTLET/HOME DELIVERY/OTHERS
BRAND PREFERENCE:1. 2. 3. 4. 5. 6. 7.
HOW DO YOU CONSIDER MD MILK? VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY PRICE OF MD MILK TO YOU : HIGH/MODERATE/COMPETITIVE/AVERAGE TASTE AND FLAVOUR MD MILK TO YOU: PLEASANT/STALE/SOURING/OTHERS(IF ANY SPECIFY) DENSITY OF MD MILK TO YOU: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY SHELL LIFE OF MD MILK TO YOU: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY USAGE OF MD MILK IN YOUR FAMILY FOR: TEA&COFEE/DRINKING/AS OTHER SUPPLEMENT PARAMETERS OF JUDGEMENT OF THE PRODUCT: TASTE: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY QUALITY: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY HEALTH & HYGIENE: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY PACKAGING: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY AVAILABILITY: VERY GOOD/GOOD/SATISFACTORY/NOT SATISFACTORY OTHERS (IF ANY SPECIFY) DO YOU PREFER OTHER BRANDS: AMUL/METRO/OTHERS (IF ANY
8.
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SPECIFY)
9.
FACTORS THAT INFLUENCE YOU TOWARDS OTHER BRAND:
TASTE/QUALITY/HEALTH&HYGIENE/PACKAGING/AVAILABILITY/OTHERS (IF ANY SPECIFY)
10. 11.
DO YOU USE OTHER MD PRODUCTS:
MISHTI DOI/YOGURT/PANEER/GHEE
ANY THREE CHANGES THAT YOU WOULD LIKE IN MD PRODUCTS.
COMMENTS (IF ANY):
SIGNATURE OF THE INTERVIEWER:
BIBLIOGRAPHY www.motherdairy.com Mother Dairy Kolkata Company Brochure Business Research methods By Donald R Cooper and Pamela S Schindler
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Internship Report: An Organizational Study

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Internship Report: An Organizational Study

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INTERNSHIP REPORT

MOTHER DAIRY, KOLKATA

Master of Business Administration

M.P BIRLA INSTITUTE OF MANAGEMENT

Date: 18/ 08/2011

Reg. No. 10XQCMA014

M.P BIRLA INSTITUTE OF MANAGEMENT

Reg. No: 10XQCMA014

M.P BIRLA INSTITUTE OF MANAGEMENT

M.P BIRLA INSTITUTE OF MANAGEMENT

M.P BIRLA INSTITUTE OF MANAGEMENT

1.1 Background of study

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1.2 INDUSTRY PROFILE

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M.P BIRLA INSTITUTE OF MANAGEMENT

M.P BIRLA INSTITUTE OF MANAGEMENT

M.P BIRLA INSTITUTE OF MANAGEMENT

1.3 Company Profile

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MOTHER DAIRY KOLKATA (At a glance)

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MOTHER DAIRY KOLKATA

Traded product Installed capacity (Milk) Average Present Production

Ghee, Paneer. 600000 Ltr/day.

1.4 MISSION, VISION AND OBJECTIVE OF MOTHER DAIRY KOLKATA

M.P BIRLA INSTITUTE OF MANAGEMENT

POLICY & OBJECTIVE OF MOTHER DAIRY KOLKATA

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M.P BIRLA INSTITUTE OF MANAGEMENT

2.1 ORGANIZATIONAL HIERARCHY

SR. ASSISTANT ASSISTANT WORKER

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2.2 MANAGEMENT RELATIONSHIP

Minister In charge Animal Resource Development Dept. Govt. of W.B

Member Member Member

Chief General Manager, Mother Dairy Kolkata.

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M.P BIRLA INSTITUTE OF MANAGEMENT

3.1 FINANCE/ACCOUNTS DEPARTMENT

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Graph representing the Net Profit of Organization

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3.2 MARKETING DEPARTMENT:

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Pictures of the products

DOUBLE TONED MILK

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[%] 3.5 8.5

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M.P BIRLA INSTITUTE OF MANAGEMENT

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Rs 30.00 Rs 56.00 1Kg---

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PACKAGED DRINKING WATER

Rs 8.00 Rs 12.00 Rs 20.00

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Graph representing the Sales

COMPETITORS Amul Metro dairy Red cow Others

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