Minor Research Project
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A STUDY ON MARKETING STRATEGIES OF NANDINI MILK WITH SPECIAL REFERENCE TO TUMUL IN TUMKUR DISTRICT MINOR RESEARCH PROJECT Final Report of the work done on the minor research project Reference No.1514-MRP/14-15/KATU008/UGC-SWRO dated 04.02.2015 Submitted to Deputy Secretary, Regional Head University Grants Commission, South Western Regional Office P.K. Block, Palace Road, Gandhi Nagar, Bangalore-560009 Submitted by: C.T. Chandrappa, M.Com., M.Phil Assistant Professor, Dept. of Commerce and Management Sree Siddaganga College of Arts, Science and Commerce for Women B.H. Road, Tumkur-572102 DECLARATION I hereby declare that the minor research project titled 'A study on marketing strategies on Nandini Milk with special reference to TUMUL in Tumkur District' is a record of original and independent work carried out by me under the guidance of marketing manager and assistant marketing manager of TUMUL. I further declare that this project has not formed the basis for the award of any other degree/ diploma of any other university / institution. Date: Signature of the principal investigator Place: Tumkur C.T. Chandrappa ACKNOWLEDGEMENT I express my sincere and whole hearted humble thanks to the president of Sree Siddaganga Education Society, Dr.Sree Sree Shivakumara Swamiji for his blessings. It is my privilege to thank our beloved Managing Director and Marketing Manager of TUMUL for providing me an opportunity to do this project successfully by giving utmost cooperation in each and every stage of my project. I express my profound indebtedness and heartful sense of gratitude to my beloved mother Late Smt. Gowramma, my father Late Sri. C.Thimmappa and my wife Smt.Kamalamma for their love, affection, inspiring encouragement and support throughout the course of the study. I am grateful to all the respondents without their co-operation, this study would not have been possible. Finally, I express my thanks to all the people who directly or indirectly helped me in completing the project. C.T. Chandrappa LIST OF CONTENTS Sl. No. Particulars Page No. PART-A 1 Executive summary 1 2 Industry profile 3 3 Company profile 8 4 Product profile 15 5 MCKINSEY 7-s framework 21 6 SWOT analysis 43 PART-B General introduction Literature review 1 Objectives of the study 44 Scope of the study Limitation of the study 2 Research design and Methodology 48 3 Data Analysis and interpretation 50 4 Findings, suggestions, conclusion and learning outcome 73 5 Bibliography 78 6 Annexure 79 LIST OF TABLES AND CHARTS Sl. Page Particulars No. No. 1 Age group of the respondents 51 2 Income status of the respondents 52 3 Awareness of Nandini milk to the respondents 53 4 The way in which respondents are aware of Nandini milk 54 Among the promotional strategy which influenced the most while 5 55 choosing the product like milk 6 Brand of milk consuming now by respondents 56 7 Factors influenced to purchase the particular brand 57 8 Respondent’s opinion on packing of Nandini milk 58 9 Respondent’s opinion on price of Nandini milk 59 10 Respondent’s opinion on Quality of Nandini milk 60 11 Respondent’s opinion on Taste of Nandini milk 61 12 Respondent’s opinion on advertisement of Nandini milk 62 13 Farness of Nandini milk booth from respondents house 63 14 Availability of Nandini milk in any time 64 15 If no, at what time it will be available 65 16 Often purchase of Nandini milk by respondents 66 17 Satisfaction of Nandini milk among respondents 67 18 Respondent’s level of satisfaction 68 19 Respondent’s reason for Non satisfaction 69 20 Respondent’s opinion on packing of other milk brand 70 21 Respondent’s opinion on quality of other Milk brand 71 22 Respondent’s opinion on pricing of other milk brand 72 ‘A study on marketing strategy of Nandini Milk with special reference to TUMUL 1. EXECUTIVE SUMMARY The minor project work on marketing strategies of Nandini milk has been carried out with special reference to Tumkur Milk union at Mallasandra, Tumkur. The study is divided into two parts. In Part A, I have made an attempt to study the History of Milk industry, Growth of the industry, Major players of Milk industry, Market share and PEST analysis. In the Industry profile and company profile, history of TUMUL, its major players, vision, mission and objectives of the organization, Product profile of TUMUL, Mckinsey 7’s framework and SWOT analysis of TUMUL are covered. KMF came into existence in 1984. Now KMF has its units in 13 districts of Karnataka. It is the major producer of the Milk and Milk products in the Karnataka. It is expected to emerge as a strong force in the global Milk dairy market in coming years. The Tumkur Milk Union registered as “Tumkur Co-operative Milk Producers Societies Union Limited” under registrar of Co-operative societies act on 27th June 1977. The dairy co-operatives were established under the ANAND pattern in a three tier system. Formation of dairy co-operative societies at village level, milk unions at district level to take care of the procurement, processing and marketing of milk and federation at state level to co-ordinate milk movement and marketing at the state level. Part-B includes review of literature, research design and methodology I have adopted while doing research. It involves title of the study, statement of the problem, objectives of the study, source of data, tools and technique, scope of the study, sample size, methodology and also limitations of the study. I have made an attempt to study the marketing strategies adopted in TUMUL, pricing strategies, product quality strategies, effectiveness of promotional strategies, advertising strategies etc with the excellent guidelines given by marketing manager and assistant marketing manager of Tumkur Milk Union Limited. The research objectives were studied through a descriptive research design 1 ‘A study on marketing strategy of Nandini Milk with special reference to TUMUL by using both primary and secondary data. For primary data I have prepared questionnaire with 26 questions, among which 24 are close ended questions and 2 are open ended questions. I have made survey among the hundred respondents to know their opinion on effectiveness of marketing strategies adopted by Tumkur Milk Union Limited. In data analysis and interpretation I have clearly shown the table and chart along with clear interpretation. For secondary data I have used various websites, textbooks, news papers and magazines etc. After data analysis and interpretation, I have clearly mentioned the findings of my study, recommendations, suggestions and my learning outcome of the study along with conclusion. And at the end, I have mentioned the source of data, bibliography and the questionnaire which I have used to conduct the survey among the respondents. 2 ‘A study on marketing strategy of Nandini Milk with special reference to TUMUL 2. INDUSTRY PROFILE PROFILE OF DAIRY INDUSTRY IN KARNATAKA Brief history of the industry India is the world leader in milk production with total volume of 115 million tons. Driven by steady population growth and rising income, milk consumption continues to rise in India. Dairy market is currently growing at an annual growth rate of around 7 per cent in volume terms. The market size of Indian dairy industry stands at around US$ 45 billion. Since India’s population is predominantly vegetarian; milk serves as an important part of daily diet. Indians use milk in various preparations such as in brewing tea and coffee, in making yogurt or curd and in preparing many Indian dishes. For most households, milk is also a popular beverage due to its nutritional value. In India, rural households consume almost 50 percent of total milk production. The remaining 50 percent is sold in the domestic market. Of the share of milk sold in the domestic market, almost 50 percent is consumed in fluid form, 35 percent is consumed as traditional products (cheese, yoghurt and milk based sweets), and 15 percent is consumed for the production of butter, ghee, milk powder and other processed dairy products (including baby foods, ice cream, whey powder, casein, and milk albumin). Most dairy products are consumed in the fresh form and only a small quantity is processed for value addition. In recent years, however, the market for branded processed food products has expanded. Although only around 2 per cent food is processed in India, still the highest processing happens in the dairy sector, where 35 percent of the total produce is processed, of which only 13 percent is processed by the organized sector. 3 ‘A study on marketing strategy of Nandini Milk with special reference to TUMUL Key facts 65 per cent of the milk is sold in “loose” form Only 5 per cent of the milk is sold through retail chains 70 per cent is delivered to the homes by ‘milk agents’ Carton milk or packaged milk has been growing at 24 per cent annually Most branded FMCG companies are keen on launching flavored dairy products whose market size is pegged at US$ 166 million. GROWTH OF THE INDUSTRY During the last three decades, our nation’s milk producers have transformed Indian dairying from stagnation to world leadership. During this period, science and technology (S & T) have played a critical role in supporting our farmers efforts. During the next decade, the role will be further enhanced as we face a number of new challenges. The dairy cooperative movement has been central to the development of dairying in India. The inspiration for this movement was the success of the Khaira District Cooperative Milk Producers’ Union -- better known as Amul. Founded in 1946 in response to the exploitation of district’s dairy farmers, Amul grew rapidly from its initial base of two societies and two hundred liters of milk.