Executive Summary

This project has been under taken to know the Market Penetration and consumer response
towards in Katraj dairy. Then we decided to some parameter for this project and made the
questionnaire for customer and retailer. And doing the survey between customer and
retailer through questionnaire then we got some positive and negative result of Katraj
milk through customer and retailers.
As a part of our research analysis according to survey resultant and we used to graphs,
brand, and pie chart for easy to represent fact and figure of analysis data of Katraj dairy
limited. An meet the Katraj management team such as management team such as
Manager, Marketing manager, quality department, Dairy Engineers, production
department, and staffs of Katraj dairy, an finding the profile, financial data production
process, quality maintenance, technology and technical equipment of Katraj dairy.
After the research work we finding the some suggestion for increase sales of milk of
Katraj Dairy and made of marketing strategy of sales and distribution system for Katraj
dairy limited.
The research work under taken by us has given practical experience and view of retailer
and customer about the milk and other milk product. Overall service of the Katraj dairy is
satisfactory and maintenance is also good.
This has given an idea how to deal with customer and retailer involved in the marketing
and distribution activities Chitale Milk.

CONTENTS

SR NO.

PARTICULARS

1.

Introduction

2.

Industry Profile

3.

Company Profile

4.

SWOT Analysis

5.

Objective of the Project Work

6.

Research Methodology

7.

Data Collection & Data Analysis

8.

Finding

9.

Limitations

10.

Suggestions

11.

Appendices, Bibliography

CHAPTER 1:
INTRODUCTION
It is our pleasure to have this type of interesting topic related to Distribution and
Marketing strategy for increasing sale. As we know that distribution and marketing
strategy plays a very important role in marketing. So first of all we should know what is
distribution and marketing strategy.
According to Drucker Both the Market and Distribution Channel are often more crucial
than the product. They are primary, the product is secondary.
They deserve a good deal of attention and study much more than usually received. A
dependable and sound distribution system is essential. It creates and adds value to all
most all products. They relate to cost reduction, financing, co-operation in setting prices
communication assistance and reduction of number of transactions.
Transportation and distribution system in local area is divided into 13 routes. These
routes are also known as by the help of codes..
Marketing is a business term referring to the promotion of products, especially
advertising and branding. The term developed from the original meaning which referred
literally to going to market, as in shopping, or going to a market to sell ones products.
The American Marketing Association (AMA) states, Marketing is an organizational
function and set of processes for creating, communicating and delivering value to
customers and for managing customer relationship in ways that benefit the organization
and its stakeholders.
Marketing practice tends to be seen as a creative industry, which includes advertising,
distribution and selling. It is also concerned with anticipating the customers future needs
and wants, which are often discovered through market research.
I have my summer project in Katraj Dairy. In my project I had to find out Market
penetration and consumer response and suggest a Mktg. Strategy for increasing sales
from Katraj dairy is well known brand in Pune.

CHAPTER 2:
INDUSTRY PROFILE

2.1 Definition of Dairy.

Dairy:- It is a farm or section of a farm that is concerned with the production of milk
and other milk products. (A place where Milk and Milk product are handled.)

MILK- A white or yellowish fluid secreted by the mammary gland of animals.

It consists of emulsion of fat in water with casein and other proteins, milk sugar
and inorganic salts. The solids other that fat include protein, carbohydrates,
water-soluble, vitamins and minerals.

MILK
MILK

FAT
FAT

SNF
SNF

VITAMIN
VITAMIN
AA
DD
EE
KK

PROTEIN
PROTEIN
MINERALS
MINERALS
IRON
IRON
CALSIUM
CALSIUM
LECTORS
LECTORS

According to the prevention of food adulteration rules 1998,the

percentage of milk, fat and SNF in different classes and designation of milk
specified respectively are as follow: Buffalo milk (5%-6% and 9%), cow milk

(3%-4% and 8.5%) recombined milk (3% and 8.5%) double toned milk (1.5%9%) and skimmed milk (not more than 0.5% and 8.7%) the fat percentage for
the milk of Cow and Buffalo varies from state to state and is detailed in DFA
rules.

Milk Products :
Milk is the main product that is produced by the Katraj. Milk acts as a
raw material for the other products of Katraj like curd, butter milk, paneer, etc.
Katraj processes variety of milks such as whole milk, toned milk, cow milk, etc
because the demand of milk are different from customer to customer Katraj
tries to fulfill all the demands, e.g. people who want Fat purchases Chitale
Fullcream milk , standardize milk is used for tea.

Types of milk
Name
Whole Milk
Toned Milk
Cow Milk
Skim Milk
Standardize Milk
Buffalo Milk

FAT (%)
6
3
3.5
0.07
4.5
5.5

SNF (%)
9
9
8.8
9.3
9
9

2.2 Classification of Dairy Products.

FLOW CHART OF CONVERSION OF MILK INTO TRADITIONAL

INDIAN DAIRY PRODUCTS

MILK

Cultured

Condensed

Precipitation

Shrikhand
Ghee
Lassi
Kadbi

Misti Doi
Rabri
Kheer
Kkoa

Paneer
Sandesh
Chhan
Rasgoola
Pantoda
Rasmalai

2.3About Dairy Industry in India.

The urban market for milk products is expected to grow at an accelerated pace of around
33% per annum to around Rs. 93,500 crores by year 2013. This growth is going to come
to from the greater emphasis on the processed foods sector and also by increase in the
conversion of milk into milk products. By 2013, the value of Indian dairy produce is
expected to be Rs 10,00,000 million. Presently the market is valued at around
Rs7,00,0000mn.

Year
2003-04
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13

Quantity

Production of milk in the past 10 years

88.08
104
108.23
112.65
117.34
121.87
125.98

2.4 Profiles of the Whole Milk Industry.

6

India is the largest milk producer in the world, with milk production at 100 million MT.
Value of output was Rs. 1179 billion (2004-05) (Almost equal to the combined output of
paddy was wheat!!).The country also has 1/5 th of the world bovine population. Of the
milch animals (45% indigenous cattle, 55% buffaloes, and 10% cross bred cows).
Milk productivity per animal is very low at, around 1000 Kg/lactation (world average
2038 Kg/lactation). Low genetic potential, poor nutrition and lack of services key for low
productivity. Different regions in India are at a different level of progress in the dairy
industry. Punjab and Maharashtra can be considered as well developed states in the area
of dairy. Tamil Nadu, Andhra Pradesh, fall in the category of states with average progress,
while, the states of Bihar, Orissa and most NE states fall in the category of less developed
areas.
Dairy co-operatives account for the major share of organized milk collection and
handling in the country.
Dairy
Federation

States

No. of No. of Capacity

co.op
Dairy
(000lts)
Unions
plant

Brand

APDDCF

Andhra Pradesh

12

2437

Vijaya

COMPFED

Bihar

586

Sudha

GCMMF

Gujarat

12

19

6595

Amul

HDDCF

Hariyana

530

Vita

HIPSCMPF Himachal
Pradesh
KMF
Karnataka

30

Him

13

15

2130

Nandiini

KCMMF

Kerala

900

Miima

Mahasangh

Maharashtra

24

28

4905

Miikted

Panjab

11

1525

Aarey,Vikas,
Mahanand
Verka

MPCDF

Madhya Pradesh

1030

Sneha

OMFED

Orissa

135

Omted

PCDF

Uttar Pradesh

30

13

1510

Parag

RCDF

Rajasthan

16

10

1000

Saras

TCMPF

Tamil Nadu

12

15

2605

Aavin

WBCMPF

West Bangal

1510

Bhagirathi

CHAPTER 3:
COMPANY PROFILE
3.1 Bihar COMFED.
PuneKatraj Dairy is a unit of Bihar State Co-operative Milk Federation Limited.
(COMPFED)
The Bihar State Co-operative Milk Federation Ltd. (COMFED) was established in 1997
as the implementing agency of operational Flood program of dairy development on
Anand pattern in Bihar. It is the largest co-operative in eastern India.
Chitale milk and milk product has become a symbol of quality. As on date nine out of
ten dairy plants are ISO: 22000:2005 and HACCP: IS: 26881212 certified.

Procurement
The milk procurement due to sustained effort is showing growth year after year. The daily
average milk procurement during 2004--05 average 489.09 thousand kg per day (TKPD)
which has jumped more than two times 2011-12 year to TKPD.
It has been possible due to action taken during past seven to eight years to change the
trend of milk procurement are as below: Timely and regular payment to milk producers

Attractive procurement price

Induction of crossbreed cows in the DCS
Regular supervision

Unit-wise Milk Procurement

Milk
Union/
Unit
Barauni
Muzaffar
pur
Samasti
pur
Patna
Shahabad
Gaya

200405

200506

200607

200708

200809

2009-10

156.26
67.86

162.84
78.05

167,7
88.76

206.26
87.86

232.84
98.05

267.7
108.76

78.84

106.21

128,99

88.84

106.21

158.99

131.53
38.01
6.11

147.39
47.06
5.49

153.79
43,59
2.38

181.53
58.01
8.11

187.39
87.06
17.49

193.79
83.59
22.38

2010-11

2011-12

Ranchi
Bhagalpu
r
Total

5.99
4.49

5.52
5.64

4.85
7.1

10.99
8.49

19.52
9.64

42.85
72.1

489.09

558,21

589.28

650.09

758.20

838.28

905.00

955.45

(in '000 Kgs per day)

In the current year 2012 milk procurement has crossed 955.45 TKGPD. Procurement
will soon cross TKGPD.

Plants Processing Capacity

Name of the plant
Patna
Barauni
Muzaffarpur
Samastipur
Ara
Jamshedpur
Ranchi
Bokaro
Bhagalpur
Gaya

Plant capacity(TLPD)
140
150
60
80
90
90
60
40
25
15
9

Purnia
Total

10
760

Currently COMPFED is increasing the capacity of the plant due to increase in demand.
The renovation work is in progress.

Products:
Milk

Milk Products

New Product Launch

Chitale Fullcream
Chitale Standard
Chitale Tone
Chitale Skimmed
Chitale cow milk

Ghee
Ice-Cream
Lassi
Misti-dahi
Peda
Panner
Kalakand
Rasogulla
Gulabjamun
Plain-curd
Ledikeni
Balusahi

Chitale Cool Sip

Chitale mango lassi

Katraj today has an expected annual turnover of RS 100 to 200 Crores.

3.2 About Katraj PuneDairy.

Katraj Dairy started its operation on 6th March 1998. It was established under the
supervision of NDBD (National Dairy Development Board). The plant was built in
Punewith the latest machinery and equipment with a capacity of 60,000 Liters per day.
The installation cost for the new plant was approx. Rs 5.27 cr.
Katraj PuneDairy plants are ISO: 22000:2005 and HACCP: IS: 26881212 certified.
Below given is the Sales and Supply of milk of Katraj PuneDairy.
Year
Milk Supply(In Lts.)
Milk Sales(In Rs)
00-01
25000
01-02
30041
02-03
33144
5,88
03-04
36002
6.57
04-05
35080
7,50
05-06
44098
8.48
06-07
65000
12.83
10

07-08
08-09
09-10
10-11
11-12

62000
73000
80567
85067
90121

13.50
15.18
18.89
20.50
24.50

In the year 2000-2001 milk supply of Katraj PuneDairy was 25000 LPD and today it
supply 90121-100000 LPD. From the last ten years Katraj PuneDairy has a growth rate of
about 25%

3.3 Management Profile

Katraj Dairy has trained & experienced manpower. Manpower strength at PuneDairy is
around 250. Brlow is the Management Structure of Katraj Dairy
.

Chief Manager
Asst. Manager Processing

Asst. Manager Mktg

A/C Incharge

Engg. Incharge

Asst. Manager Procurement

Asst. Manager Store / Vechile

Asst. Manager Quality

Incharge Security

3.4 MISSION & OBJECTIVES.

It is a state level apex body of milk co-operative in which aims to provide remunerative,
returns to the farmers and also serve the interest of consumers by providing quality
products which are good value for money

3.5 PRODUCTS PROFILE

11

Katraj Dairy offers following products to the customers:

Katraj Milk

Standard Milk

500/1000ml

Toned Milk

500/1000ml

Paneer

200gm/1kg

Peda

100/250g

Katraj Special

100g

Misti Dhahi

100g

Fitness curd

200/500g

Lassi

200ml

Gulab Jamun

1kg

Flavors Milk

200ml

Flavor Butter

100g

Ghee

500ml

Ice cream

Cup icecream
Cone icecream

12

3.6 KATRAJ QUALITY

Katraj milk and milk product has become a symbol of quality. As soon as date nine our
of ten dairy plants are

ISO: 22000:2005 and

HACCP :26881212 certified.

Katraj quality of milk is close to BIS standard.

(bureau of Indian Standard)
Katraj has cost effective and eco- friendly processes and technology.
It has greenery surroundings to work in with hygiene.

Katraj Healthy milk contains following constituent:

Healthee Milk

Contains (gm)

Milk Fat

31

Protein

36

Lactose

48

Potassium

1600

Calcium

1350

Zinc

4.6

Iodine

17.5

Sodium

600

Phosphorus

1100

Vitamin-A

2701

Vitamin-B6

0.7

Vitamin-B12

13

3.7 KATRAJ BRAND

It is the largest co- operative in eastern India.
Katraj milk and milk product has become a symbol of quality. It is peoples & cooperative believe that milk is pure, hygienic and disease free and comes from Katraj
Dairy.
It is the taste and choice of the city. Many Katraj products enjoy a 42 per cent market
share. When it comes to milk then in pouch milk it has 40-50% of the market share.
According to our survey, it was found that in milk 65% of the customers believe that
Katraj is a good brand is better than any other brand in Pune.
Chitale Milk is gearing up to start supplying milk and other dairy products to Delhi and
Kolkata in an effort to expand its market outside Bihar and Jharkhand.

SWOT
Analysis of Katraj Dairy
Strengths:

Demand profile: Absolutely positive.

Margins: Quite reasonable, even on packed liquid milk.
Flexibility of product mix: Tremendous. With balancing equipment,
you can keep on adding to your product line.
Availability of raw material: rich.
Technical manpower: Professionally-trained, technical human
resource pool, built over last 30 years.

Weaknesses:

Lack of control over yield: Theoretically, there is little control over

milk yield. However, increased awareness of developments like
embryo transplant, artificial insemination and properly managed
14

animal husbandry practices, coupled with higher income to rural milk

producers should automatically lead to improvement in milk yields.
Logistics of procurement: Woes of bad roads and inadequate
transportation facility make milk procurement problematic. But with
the overall economic improvement in India, these problems would
also get solved.
Problematic distribution: Yes, all is not well with distribution. But
then if ice creams can be sold virtually at every nook and corner, why
cant we sell other dairy products too? Moreover, it is only a matter of
time before we see the emergence of a cold chain linking the producer
to the refrigerator at the consumers home!
Competition: With so many newcomers entering this industry,
competition is becoming tougher day by day. But then competition
has to be faced as a ground reality. The market is large enough for
many to carve out their niche.

Opportunities:
"Failure is never final, and success never ending. Dr Kurien bears out
this statement perfectly. He entered the industry when there were only
threats. He met failure head-on, and now he clearly is an example of never
ending successes! If dairy entrepreneurs are looking for opportunities in
India, the following areas must be tapped:

Value addition: There is a phenomenal scope for innovations in

product development, packaging and presentation. Given below are
potential areas of value addition:
o
This will lead to a greater presence and flexibility in the market
place along with opportunities in the field of brand building.

Addition of cultured products like yoghurt and cheese lend

further strength - both in terms of utilization of resources and
presence in the market place.
A lateral view opens up opportunities in milk proteins through
casein, caseinates and other dietary proteins, further opening up
export opportunities.

15

Yet another aspect can be the addition of infant foods, geriatric

foods and nutritional.
Export potential: Efforts to use export potential are already on.
Opportunities will increase tremendously for the export of agriproducts in general and dairy products in particular.
o

Threats:
Milk vendors, the un-organized sector: Today milk vendors are occupying
the pride of place in the industry. Organized dissemination of information
about the harm that they are doing to producers and consumers should see a
steady decline in their importance.

16

CHAPTER 4:
OBJECTIVE OF THE PROJECT WORK
4.1 Objective of the project

To study Marketing and Distribution Strategy.

To determine the Customer, Retailer & behavior about Chitale milk.

To determine the importance of various parameters before selling the Milk.

To determine the factors affecting of Chitale milk supply and distribution.

Analyzing the marketing strategy for increasing sale.

To study the various channel of distribution.

17

CHAPTER 5:
RESEARCH DESIGN AND METHODOLOGY

MARKETING RESEARCH
Definition of marketing research is approved by the board of the American
Marketing Association (AMA) is:
Marketing research is the functions which links the customer and public to
marketer through information used to identity and define marketing opportunities
and problems; generate define and evaluate, marketing actions, monitor
marketing performance, and improve understanding of Marketing as a process.

18

Simply, marketing research is the systematic design, collection, analysis and

Reporting of the data findings relevant to a specific marketing situation facing the
company. Careful planning through all stages of the research is a necessity.
Objectivity in research is all- important. The heart of the scientific method is the
objective gathering and analysis of the information.
The function of marketing research within a company is to provide the
Information and analytical inputs necessary for effective planning of future
marketing activity control of marketing operations in the present and evaluation of
marketing results.
A research may undertake any of three types of research investigations
depending upon the problem. These three types of research included.Basic
research, Applied research and designated fact gathering.

5.1 RESEARCH METHODOLOGY.

The success of the analysis mostly depends on the methodology on which it is
carried out. The appropriate methodology will improve the validity of the findings.
It is very important to have a suitable research methodology. For my
Management thesis entitled, Distribution and Marketing strategy for increasing sale.
In order to meet the objectives of the study the data was collected with the help of
primary and secondary sources of data collection. The size of the survey was from 550
respondents, all from different zones and different age groups.

PRIMARY DATA: - sources of primary data wer.35e customers, retailers &

distributers. The data has been collected through survey and observation. The survery
method was used because it is most useful method to know the availability of the Katraj
brand against the others. The customers were chosen randomly for this purpose. For this
purpose of study under survey method the structural interviews were conducted with the
help of questionnaires. The separate questionnaires were designed for retailers and

19

customers for asking question in a proper sequence. A part from this keen observation
also helped in generating needful information.

SECONDARY DATA: - the secondary data was collected from the

interview/interaction with management, staffs, workers, internet & handbooks.
Research methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research is done
scientifically. We can say that research methodology has many dimensions and research
methods do constitute a part of the research methodology. The study of research
methodology gives the students the necessary training in gathering materials and
arranging them and trained in techniques for the collection of the data appropriate to
particular problem in the use of statistics, questionnaires and in recordings evidence,
sorting it out and interpreting.

RESEARCH APPROAC:- research techniques may be understood as all those

methods that are used for conduction of research. Thus they refer to the methods, the
research used in performing research operation. In other words all those methods that the
researchers use during the course of studying the research problem are termed as research
techniques. Like pie-chart, bar chart, line chart, doughnut, column interpretation, tables
etc.

RESEARCH DESIGN:- the research design would facilitate the research to be as

effectively as possible yielding maximum and relevant information. A suitable design is
the one that minimizes and maximizes the reliability of the data collected and analyzed.
Therefore patameters were designed to carry out the survey. Proper format was designed
to carry the project work on track.

Research design
Research design is simply the framework or plan for a study, which is used as a guide in
collecting and analyzing the data. It is the blue print that I followed in completing a study.
As objective of the research is descriptive in form, the research design must be made
accordingly;

Formulating objective of the study

Designing the method of data collection
Selecting the sample size
Collection of data

20

Analysis of data
Conclusion and inferences
Limitations
Suggestions and recommendations.

DATA SOURCE
Data source

Primary
Data

Secondary
Data

Data collected through questionnaire

By different people in different areas

( Marketing manager)

Area of study

different parts of Pune

Niga,
Balwara.
Maids.
Boring road.
Punecity.
Phulwari sharif
Rapaspur.
Noorpur.
Santoshpur.
Hardiya.
Birpur.
Customers age group between 18 -60

Sample unit
Extent:

Pune

Sampling Method

convenience sampling was used,

21

based on the willingness and

availability

of

the

respondents.
Sampling Frame:

No specific frame

Sampling Technique:

Non-Probability sampling technique

is used and Convenience sampling.

Sample Size:

100 Respondents

Time Frame:

10th JUNE to 10th AUGUST

DATA COLLECTION TOOLS

After introduction, questionnaire with formal list of arranged questions is used. Our
data collection tool was close-ended questions prepared in structured format.

OBERVATION:- the respondents are observed by the research to collect data, study
the market conditions, know customers, retailers & distributers feedback and
suggestions. Also note the behavior or any changes within the system. The observations
may be done by interaction recording use or in this method the researcher does not in any
way interact with the respondents the researcher simply watches.

CHAPTER 6:
DATA COLLECTION & DATA ANALYSIS

6.1

Analysis of milk users or not users

22

OPTION
YES

72

NO

12

SOMETIMES

16

INTERPRETATION- Out of 100 respondents 72 are regular milk users, 16

uses milk sometimes and 12 respondents are not milk user.

6.2 Analyzing which milk customer prefer to buy.

Brand

Chitale

Raj

Sudha

Local

Customers

50

25

18

23

RESPONDE
NTS

Interpretation- according to customers, Chitale is the most preferred milk

brand. Chitale is the first choice for of 50 out of 100 respondents. It means
50%of Patnities prefer Chitale milk. Chitale is followed by Sudha milk vendors
and it consist 25% market share. Rest 18% market share of Local and 7% of
Raj

6.3 How much quantity of Katraj milk customer purchase daily?

Milk

200 ml

500 ml

1 ltr.

2 ltr. Or more

No. of
customers

20

37

28

15

24

Interpretation- out of 100 respondents 37% customers purchase 500 ml.

Chitale milk daily, 28% customers purchase 1 lit, 20% customers purchase
200 ml. And only 15% customer purchase 2 ltr. Or more Chitale milk daily.

6.4 which size is more preferred

Quantity

No. of customers

500 ml.

56

1 ltr.

44

Total

100

25

Interpretation- In the Punecity 44% customers prefer 1 ltr. Size and 56%
prefer 500 ml size.

6.5 When customers prefer to purchase milk?

Time of purchase

No. of customers

Morning

45

Evening

37

Both

18

Total

100

26

Interpretation- 45% customers purchase milk in the morning time and

37%customers purchase milk in the evening time while 18% customers
purchase milk at both time.

6.6 Which milk advertisement influences the most?

Medium of Advertisement

No. of customer

T.v

13

Radio

32

Print

30

Hoarding

25

27

Interpretation- only 32% customer influenced by the radio advertisement,

30% customers attracted by ooh advertisement, 25% by print and 13% by tv
advertisement.

6.7 Measuring the taste, price, quality, brand name, packaging,

image, availability and advertisement.
Parameters

v. imp

Imp

Normal

Least
imp

None

Total

Taste

40

25

20

10

100

Price

20

23

37

15

100

Quality

50

20

15

10

100

Brand

20

35

15

20

10

100

Packaging

19

30

20

21

10

100

Image

15

34

25

16

10

100

Quantity

20

15

35

20

10

100

Availability

35

25

20

13

100

Advertisemen
t

17

23

27

23

10

100

28

Interpretation- From the above chart it is clear that taste, quality and
availability is the very important factor while packaging and brand name &
image also important and price and quantity having normal affect in purchase
decision.

6.8 Analysis of loyality of customers towards Chitale brand?

In case of absence of availability of Chitale milk what customers do ?
Actions

No. of responses

Postpone the purchase

21

Switch to other brand

18

Search on other shop

61

29

Interpretation-61% customers search on other shop, 21% postpone the

purchase and 18% will purchase other brand.

6.9 If new brand comes in market then will the customer shift
to the new brand?

Behaviour

No. of response

Not at all

50

May consider

21

No. shall not

14

Cant say

15

30

Interpretation- 50% customers say they will not shift at all, 21% may consider,
!4% customer are not sure and 15% says cannot say.

6.10 Is Chitale milk healthy?

Choice

No. of response

Yes

59

No

19

Cant say

22

Interpretation 59% customer perceive that Chitale milkis healthy.

6.11 Do you think the taste of Chitale milk is superior than its
competitors ?

Choice

No. of response

Yes

61

31

No

19

Cant say

20

Interpretation- 61% customers like the taste of Chitale milk.

6.12 How do you prefer to consume Chitale milk?

Choice

No. of response

Tea

34

Direct milk

46

Other

20

32

Interpretation- 46% customer uses as a direct milk , 34% customer uses as a

tea and 20% use for the other purpose

6.13 Is the price of Chitale milk fair?

Choice

No. of response

Yes

71

No

10

Cant say

19

33

Interpretation- 71% customers says the price of Chitale milk is fair.

6.14 Do you think Chitale milk is available on booth ?

Choice

No. of response

Yes

60

No

28

Neutral

12

34

Interpretation 50% customers says that no. of shops are not sufficient and
need to increase.

6.15 Do you like the packaging of Chitale milk?

Choice

No. of response

Yes

64

No

14

Cant say

22

35

Interpretation- 64% customers says that the packaging of Chitale milk is easy
to use.

6.16 Do you use other Chitale products?

Choice

No. of response

Yes

90

No

10

36

Interpretation Most of the customer uses other Chitale products.

6.17 Analyzing the awareness about new products.

Choice

No. of response

Yes

58

No

42

37

Interpretation 58% people aware about the new Chitale product.

6.18 Analyzing quantity purchased.

Directions

North

South

East

West

Quantity(in Lts)

5366

2978

3135

4133

From the above analysis we can see:

38

In North direction purchase quantity is more than South, East & West.
In South direction purchase quantity is nearly half of North.
In East direction also figures are not far behind North.

Therefore much focus is required to create demand & market in East & South
direction. Because purchase quantity of Retailers is directly linked with sales. If
purchase quantity of retailers is more than sales is more. If it decreases sales also
decreases.

6.19 Are you satisfied with your association with Chitale ?

Years

0-2

2-4

4-6

Above 6

No. of
retailers

17

The above analysis is done to know since how long are the retailers work
with Katraj.
From the above analysis it is good to see that out of 50 retailers 30
retailers are very old.

39

 But in the last 2 yrs. 2 new retailers are joined , which is not
satisfactory.

6.20 Maximum sell is at which time?

Timing

No.of response

Morning

18

Evening

12

Interpretation 60% retailers says that sell is maximum in morning time.

6.21 Which milk is more in demand?

Name

No. of response

Chitale Fullcream

11

Chitale standard

Chitale Skim

Chitale Tone

40

Interpretation According to retailers Chitale Fullcream is more in demand

and it is followed by Chitale skim

6.22 Which size is more in demand?

Choice

No.of response

500 ml

18

1 lit

12

41

Interpretation- 60% retailers says that mostly demanded size is 500 ml, And
40% retailers says that 1 lit size is more in demand.

6.23 Which freeze does retailer use,

Freeze

Deep freeze

General freeze

No. of response

30

00

Interpretation- In the Punecity all the retailers using deep freeze for preserve
the milk.

42

6.24 Analyzing the retailers satisfaction in terms of margin

and service.
Satisfaction

No. of response

Yes

22

No

Interpretation- out of 30, 22 retailers are satisfied while 8 retailers need more
margin and better service.

6.25 Why retailers choose Chitale to sell?

Choice

No. of response

Quality

Margin

Service

High demand

18

43

Interpretation- most of the retailer choose that particular brand because the
demand of the milk of this brand is high in the market.

6.26 Grading of the distribution system as per retailers.

Grade

No. of response

Excellent

Good

15

Average

Poor

44

Interpretation- As per retailers the current distribution is good but need some
useful changing to make it best.

6.27 Retailers satisfaction for payment system.

Choice

No. of response

Yes

24

No

Interpretation- 80% of retailers are satisfied while 20% wants there should be
some credit facility.

45

6.28 Analyzing Milk Sales

Years

Sales (in Lakhs)

% Increase or Decrease

2003-04

6.57

11.68

2004-05

7.50

14,15

2005-06

8.48

13.07

2006-07

12.83

51.22

2007-08

13.50

5.22

2008-09

15.18

12.44

2009-10

18.89

24.44

2010-11

20.50

8.52

2011-12

24.50

19.51

46

This analysis is done to know the milk sales of Katraj PuneDairy of the past 10 years.
Given table and chart (Figure) shows the milk sales of Katraj PuneDairy of the last 10
years.

In the year 03-04 milk sales was 6.57 Lakh, and in 11-12 sales figure reached
24.50 lakh.
From then till now avg. growth rate is about 255.
In the year 06.-07 Katraj Punehad its best increase in sales.
Year 09-10 also had good sales.
In the year 07-08 has minimum sales by 5.22%
Latter in the year 11-12 sales improved and showed increase by 20%.

6.29 Analyzing Supply of milk.

0

Year

Quantity (in Lts)

% Increase or decrease

2002-03
2003-04
2004-05
2005-06

33144
36002
35080
44098

8.62
-2.56
25.7
47

2006-07
2007-08
2008-09
2009-10
2010-11
2011-12

65000
62000
73000
80567
85067
90121

47.39
-4.61
17.74
10,36
5.58
5.94

This analysis is done to know the quantity of milk supply of Katraj PuneDairy in the past
10 years.
Given table and chart shows the quantity of milk supply of Katraj PuneDairy in the past
10 years.

In the year 2002-03 milk supply was 33,144 Lts, and in 2011-12 sales figure
reached
90,121 Lts.

From then till now avg. growth rate is about 21.5%.

In the year 2006-07 Katraj Punehad its best growth rate ever in supply i.e.
47.39%.

Year 05-06 also had very good supply growth.

In the year 04-05 & 07-08 sales decreased by -2.56% & -4.61% respectively.

Latter in the year 08-09 supply has improved with respect to last supply.

6.32 Analyzing the Marketing Strategy.

Marketing is a business term referring to the promotion of products, especially
advertising and branding. The term development from the original meaning which
referred literally to going to market, as in shopping, or going to a market to sell
ones products.
The American Marketing Association (AMA) states, Marketing is an
organizational function and set of processes for creating, communicating and
delivering value to customers and for managing customer relationship in ways that
benefit the organization and its stakeholders.
Marketing practice tends to be seen as a creative industry, which includes
advertising, distribution and selling. It is also concerned with anticipating the
customers future needs and wants, which are often discovered through market
research.
48

Following are the Marketing Strategies of Katraj Dairy to influence sales &
customers:
1.
Increase production Looking at the huge demand of milk in Punecity.
Katraj Dairy is working to increase its production capacity from 60,000Lts
to 1 Lakh.
2.
Advertisements
Category 1
Wall Painting.
Booth Painting
Shop Painting.
Vehicle Painting
Category 2
Retail sign Boards.
Banners.
Pamplets.
Handbills.
Hoardings.
Category 3

3.
4.
5.
6.
7.
8.
9.

Pouch Advertisement.

Sponsoring Competition.
Participating in Trade Fair.
Timely Supply.
New Booth.
Incentives on Sales of Milk.
New Area Exploring.
Channel Partner Meeting.

Today Katraj PuneDairy markets about 1,00,000 1 ,10,000Lts. of milk.

It is good to see that Katraj PuneDairy has very good brand. People believe that
Katraj products are far better than its competitors.
Lets see few of such result:
(a) Brand-wise Katraj PuneDairy is very good.
49

(b) In Advertisement, following is the result-

Customers Feedback
PARAMETERS

Excellent Very
Good
ADVERTISEMENT 5
20

Good Fair Poor Total

12

33

30

100

Retailers Feedback
Parameter

Excellent Very
Good
Advertisement 0
2

Good

Fair

Poor

Total

19

30

The above figure clearly say that Advertisement of Katraj is Poor. We already
discussed that according to customers advertisement is an important part.

(c) One of the Katraj marketing Strategy is Hoarding.

There are a number of Katraj retailers without any hoarding, banner or
sign board.
(d) Another way of Marketing is new area exploring for new Booths.
There are a number of good and profitable locations where there is no
Katraj Dairy Booth.
(e) Katraj Dairy also has incentive to promote sales.
Incentive is one of the best tools though which one can increase sales
and encourage the channel partners to do their best

But no incentive to promote was given.

50

CHAPTER 7:
FINDINGS
7.1 Finding from the customers.
Survey size of customers was 100. it includes feedback from all for directions
North south east and west .we got lot of feedback which were common and
Few also which had to be focused.
a) According to customers, Chitale is the most preferred milk brand.
Chitale is the first choice of 50 out of 100 customers.
It means 50% of Pune citizen prefer Chitale milk brand.
b) Customer prefer or purchase mostly in morning.
And evening purchase is nearly half of the evening purchase.
c)

44% of the customers purchase 1It pack vs.

51

56% of the customers purchase 500ml pack.

Therefore the demand for 500 ml pack is more than 1 lit in Pune city.
d)

According to this analysis hoardings influences the customers most while

Purchasing.

e)

From the analysis following was services of Katraj PuneDairy as per

customers.

Here none of the services was found Excellent.

BRAND and IMAGE of Katraj is found Very Good.
TASTE, QUALITY, PACKAGING,AVAILABILITY & OVERALL
SERVICES was given Good by the customers.
PRICE of Chitale was given Fair.
ADVERTISEMENT was given Poor by the customers.

f) In this analysis it is found that customers are loyal, but need to be cautious so that
customers may not shift to other brand in future.
g) 59% customers said Chitale milk is good for health.

7.2 Finding from the Retailers.

Survey size of the Retailers was 30. It includes feedback from all for directions north,
south, east & west. We got lot of feedback which was common and few also which
had to be focused.
1. In North direction purchase quantity is more than South, East & West.
2. In South direction purchase quantity is low.
3. According to retailers : Response on sales comparison with last year.
50% of the retailers said that sales increased.
24% of the retailers said sales decreased.
26% of the retailers said that their was no change.
4. In the last 2 years, there has been only 2 new Katraj Dairy retailers.
5. The demand for 500 ml pack is more than 1 lit in Punecity.
6. Quantity of milk was found Excellent as per retailers feedback.
7. ADVERTISEMENT is given poor by the Retailers.
8. Out of 30 all retailers have deep freezer.
9. How much Katraj Retailer is satisfied.
79% of the Retailers are satisfied.
21% Retailers are not satisfied.
10. In addition we also found in survey.
Full cream demand their.

52

Supply should be on time.

Price chart is not their with every retailers.
Sometime old date milk is supplied.
Retailers complains are not heard/ or action is not on time.
Sometimes less milk is found in carets.
Distributor services is not up to mark.
Improve and increase advertisement.
Some said Katraj Dairy is working good.
Price of milk should be round off.
Lack of fast order services.
Packing should be better to avoid leakage problem.

CHAPTER 8:
LIMITATION

There is also some touch of approximation in its nature. Due to this some inherent
limitations are characterized as:
There was time constraint since this survey has to be completed in a
limited time period.
With large population covering Punelocality, the sample size is no so
perfect to give an accurate solution.
The survey was limited to big market only become shorter time period.
There is a chance of biasness in the figures and may be false
information given by the customers.

53

 We have to rely on the information provided and its accuracy cannot

be judged.
Some people hesitate to give answer.

CHAPTER 9:
SUGGESTIONS
9.1 Suggestion.
This section is one of the important area of this project. This is the resultant of the project
as suggestions.
Chitale need to maintain and protect its brand. From not only from competitor
but also from the poor performance of its other product i.e. Chitale paneer.
Supply is not at all consistent. Management need to know and control whether
the supply is consistent or not. They need to know with evidence.
Advertisement of Katraj is not at all satisfactory. 72% of the customers have said
that Katraj Dairy Advertisement is not good. 75% of Begusaraim citizens have
said that Advertisement influence them to buy. Therefore Advertisement should
be such that it could catch masses.
Chitale milk price should be consistent. And should increase with at acceptable
rate. It should not increase by a large margin. In price fluctuation Katraj has been
given poor by the customers and the retailers both.

54

Milk quality is not consistent. Chitale is a brand and people rely on it. Quality
must be strictly measured and followed each and every day.
Packaging is not excellent, very good but average. If Katraj Dairy is best in the
market then packaging should also be best. It is one of the source of marketing
also. If packaging is average then how will the customer take that pouch at home.
And leakage pouch are not returned. Here, it will also be a headache for retailers.
Sometime their should be a training program or meet to train retailers, and
distributors how they can carry out their work afficiently and earn more.
Lack of availability. It may be due to short supply or late supply. And it can be
also when Katraj Retailers are at distant. It is important to scan the market and
allot retailers. It will increase revenue and increase sales and satisfy customers.
There are a large no. of customers said that they may shift to new brand if other
offer good quality. Therefore this should be taken care off.
A organization, or a company is known only by its quality of service and product.
Therefore their should be no compromise with product standards and services.
For better service Katraj Dairy can have its own toll-free number.
Katraj Dairy booths are now old designed very few of them are decorated in a
new look and some of the booth are in very poor condition. Katraj dairy should
modified all the booths asap.

9.2 Suggestion to Optimize Distribution System in PuneCity.

Increasing number of vehicle: - Today demand of the milk increase in the
market. No of customer and retailer are also increasing according to demand but
capacity of vehicle are not. If the capacity increases vehicles should be taken care
that 1 vehicle is not repeating the supply process again and again. Because one
vehicle will distribute and the same will vehicle will repeat the distribution will
take time.
Modernize vehicle: - Weather condition are bit balanced. And milk quality
gets effected, sometimes customer and retailer complain for poor quality of milk.
Therefore modernize the vehicle with latest technology and use latest fuel or
model. As Advertisement says- castrol CRB+gaddi me khun banker run karta
hai yahi hai gaddi tez run karne ka raj.

Awareness program between staff and distributor related with

milk quality: - Some lack of awareness about milk quality such as how much

temperature good for milk between the customer, staff and distributor. Thats
reason milk quality and distribution system too much affected. So remove this
problem sometimes organize the awareness program between the staff and
distributor.

55

 Delivery timing should be accurate and must be noted by the

retailers: - For optimizing the distribution system the delivery timing of milk
should be excellent, and timing for delivery of milk should be noted.

Take initiative action just like distributorship award and incentive

time to time: - Zeal without action is the runway horse, this proverb proves
zeal is important factor for development in any sector so takes initiative action for
increasing zeal between the distributor and give incentive time to time for
increasing enthusiasm between the distributors.
Proper dress up for distribution staffs: - Discipline express depth of the
character, so dress code is important in organization for good image between the
people and market so apply the dress code for distribution staff.
Commission should increase according to intervals and period: Commission should be increase according to sales and demand of the milk
increase. All member of the organization like a family so focus on each and every
member of the organization.

9.3 Suggestion & The Marketing Strategy to Increase Sales from .

Before mentioning Strategies 2 Marketing Technique for long term as Suggestion:

Focus and make new customers.

Start Opening new Katraj Dairy Booth at every corners. It will prevent the
whole market from any new entrants. Plus booth retailers are forever with respect
to private retailer. Plus there are several more benefits if such market is made.

a) Big & Large Hoarding on busy Streets: As citizens of Punedo not know about
Katraj advertisements. And they had told that advertisement influence them to
buy. Therefore instead of having number of banners and hoardings across the city,
Initially Katraj Dairy should have at least 4-5 big and large hoarding on busy
street (Chowks).
It will not only encourage increase sales, but also it will create new Katraj
customers and also make Brand image among people.
b) Awareness Programs : Majority of Punecitizens who do not take pouch milk,
belier that pouch milk are pure and good for health. Therefore it is only awareness

56

program that can help people to increase knowledge about Chitale milk. It not will
only help customers but will also help Katraj Dairy to increase sales and make
new customers. It is not important that it should be done on regular basis for
better result otherwise not.
c) Exploring new locations for Katraj Dairy booth: Still there are good and
profitable location where there is no Katraji Dairy booth. To increase sales this
area has to be taken care off. Otherwise those areas will give chance to other dairy
to grow their business. This will not only increase Milk sales but also sales of
other product.
d) Incentives: incentives for the Retailer & the Distributors to push up sales. Such
schemes should be made under which they increase sales to get some benefits. It
will not only increase will but also improve work quality. Here the aim of retailers
& distributor will become Increase the sales. And finally it will add to Katraj
Dairy growth.
e) C.C. Method Care & Control method:
Care your retailers & Customers & Distributor. For this:
Every moth executive with to know the real market conditions. It also
show and make a feel the Katraj really cares them, it is a kind of concern
to be made and collect information.
Tool-Free number can also help to care, run & get information and orders.
And control over Marketing Executive, Retailers, Distributors, Customer,
quality and even market.
For this,
A surprise visit by a senior management every twice a month can
really make a difference.
Marketing Executives and Toll-Free number can also be helpful in
controlling.
Strict actions against any faulty and discipline can also help to
control.
Any schemes/Strategy/Policy/Quality of delivered milk must be
measured from time to time. Control over this can save extra
expenditure and strength the system.
This way CC Method can help no only to increase sales but also improve &
strength system and also make brand image.
f) Radio Advertisement: Today it is one of the best source of Advertisement to
influence local people.
Having MOU with FM channels can help to reach and influence masses.
Every week cinema context.
o 2 free cinema ticket every week.
o Context should be regarding health care and relationship: Answer
1simple question and to win free cinema tickets.
o Health related questions for awareness & relationship questions
to make firm relationship with customers.
This will add to popularity of Katraj Dairy everywhere.

57

 Help in building strong brand.

And influence & attract new customers. And finally increase sales.
g) Target Marketing: Specially in Festivals
Tap the market in Festivals
To increase sales, advertise in advance through board or newspaper to
create more and more demand and dependability.
Fulfill retailers demand during festivals.
This will increase sales, make good image and increase reliability of
customers and retailers.
h) Katraj Boy & Katraj Girl Contest:
It can be conducted in Punecity every year. Katraj can arrange quiz contest. And
award children with certificates. And 2 best child with a gift or token of money.
Best thing is that Katraj Dairy need not have to spend money for it instead
gain confidence of people, youth, popularity in media.
Entry or Registration fee of Rs. 20
And with the help of 10 sponsors (Sponsorship charge Rs. 500-Rs.100)
Katraj Dairy can arrange a minimum amount of Rs. 4600.
It will make brand even more stronger. It will increase faith in Chitale Milk and
other brands. Will attract new customers. And increase sales.
i) Monthly Scheme
Under Monthly Scheme
Katraj Dairy can give 50 paisa discount on every 1lt of purchase.
Scheme should be applicable on 1lt pouch only
Advance payment should be their for this scheme. This advance payment
can help Katraj to expand its business. Even if the money is kept in bank
for a month then it gives nearly 3.4 4 % interest.
But for this scheme distribution and supply should be excellent.
This will increase sales.
This will also capture the customers and prevent them from taking other
milk.
j) Home Delivery
This another tool to not only increase sales but also to tap customers from going
to any other brand. Even many customers have suggested for home delivery. But
before giving this service it needs to be properly designed.
The above marketing Strategies are designed such that it will not only increase sales but
also make Katraj PuneBrand Stronger.

58

CHAPTER 10:
APPENDICES, BIBLIOGRAPHY
QUESTIONNAIRE
NAME:CONTACT No.ADDRESS:1) DO YOU TAKE MILK?
a) YES

b) NO

2)WHICH MILK DO YOU BUY?

a) SUDHA
b) RAJ
c) CHITALE
d) LOCAL
3) HOW MUCH MILK DO YOU PURCHASE DAILY?
Ltr.
4) WHICH PACK DO YOU PURCHASE?
a) 200 ml.
b) 500 ml.
c) 1 ltr.
5) WHEN DO YOU PURCHASE?
a) MORNING
b) EVENING
c) BOTH
6) WHICH MEDIUM OF ADVERTISEMENT APPEALS YOU THE MOST?
a) T.V
b) RADIO
c) PRINT
d) HORDINGS
7) How much importance you give to the following factors when you purchase milk? Tick mark.
Very
important

Important

Normal

Least
important

None

Taste
Price
Quality
Brand
Packaging
Image
Quantity
Availability
Advertisement
8) WHEN CHITALE MILK IS NOT AVAILABLE THEN
a) POSTPONE PURCHASE
b) SWITCH TO OTHER BRAND
c) SEARCH ON OTHER SHOP
d)
9) IF NEW BRAND COMES THEN IN SUCH CASE WILL YOU SHIFT TO THE NEW BRAND?
Pls TICK.
a) NOT AT ALL
b) MAY CONSIDER
c) NO, SHALL NOT
d) CANT SAY
10) IS CHITALE MILK GOOD FOR HEALTH?
a) YES
b) NO
c) SOME WHAT
11) DO YOU LIKE THE TASTE OF CHITALE PRODUCTS?
a) YES
b) NO
c) SOME WHAT
12) HOW DO YOU PREFER TO CONSUME MILK?
a) IN TEA
b) MILK
C)
OTHER
13) IS THE PRICE FAIR?
a) YES
b) NO
c) SOME WHAT

59

14) NUMBER OF RETAIL SHOPS IS SUFFICIENT?

a) YES
b) NO
c) SOME WHAT
15) ARE YOU SATISFIED WITH THE PACKAGING OF CHITALE (THEY ARE EASY TO
USE)?
a) YES
b) NO
c) SOME WHAT
16) WHICH OTHER CHITALE PRODUCTS DO YOU USE? Pls.TICK.
a) PEDA
b) LASSI
c) PANEER
d) ICE CREAM
e) GHEE
f) RASOGULLA g) KALAKAND
h) CURD
17) ARE YOU AWARE ABOUT THESE NEW PRODUCTS?
a) GOLD ICECREAM
b) MANGO LASSI
c) CALCI MILK
d) TAZA CURD
18) ARE YOU SATISFIED WITH THE STANDARD / QUALITY OF CHITALE PRODUCTS?
a) YES
b) NO
c) SOME WHAT
ANY
SUGGESTION

THANK YOU

Questionnaire of Katraj Retailer

NAME:LOCATION:CODE No.

1) PURCHASE QUANTITY .Ltr.

2) RELATION WITH CHITALE
a)0-2 Yrs>
b)2-4 Yrs.
C) 4-6Yrs.
Yrs.

D) ABOVE 6

3) HOW MUCH DO YOU SELL DAILY Ltr.

4) WHICH CHITALE MILKMIS MORE IN DEMAND?
a) FULLCREAM
b)STANDARD
c)TONE
d) HEALTHY
e)SKIM
f)
5) WHICH SIZE IS MORE IN DEMAND?
a) 200 ml.
b) 500ml.
c) 1 ltr.
6) WHICH FREEZE DO YOU USE AND ITS CAPACITY?
a) DEEP FREEZER
b) GENERAL FREEZER
60

CAPACITY
7) ARE YOU SATISFIED WITH THE CURRENT MARGIN AND SERRVICES
ON THIS BRAND?
a) YES
b) NO
8) WHY DO YOU PREFER TO SELL THIS PARTICULAR BRAND? BECAUSE
OF ITS
a)QUALITY
b)MARGIN
c)SERVICE
d) HIGH DEMAND
9) HOW WAS DISTRIBUTION
a) EXCELLENT
b) GOOD
c) AVERAGE
d) POOR
10) ARE YOU SATISFIED WITH THE PAYMENT SYSTEM?
a)YES
b) NO

10.3 Bibliography
We hereby and acknowledge the following sources
From which material been drawn in preparing the project:www.compfed.com.in,
www.dairy industry.co.in. etc.

61