Original Saras Final Report Smita Choudhary

“A Final Report on Executive Training at Saras Dairy, Alwar” SUBMITTED TO: MR. SANDEEP KUMAR KAUTISH (FACULTY GUIDE) MR. AMIT BHATTACHARYA (COMPANY GUIDE) BY SMITA CHOUDHARY 6ND11765

“INSIST ON SARAS MILK JUST !!!!! BECAUSE ONLY SARAS MILK GIVES YOU TRUE VALUE FOR YOUR MONEY. IT IS PURE, FRESH, NUTRITIOUS, HYGIENIC AND CREAMY.” 08/14/09

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A REPORT ON “A STUDY OF PERFORMANCE AND GROWTH OF SARAS DAIRY” SARAS DAIRY, ALWAR ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR ISO 9001-2000 AND HACCP CERTIFIED JAIPUR ROAD, ALWAR PH. 0144 -2702644

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Acknowledgement • I express my heartfelt thanks to Mr. J.R. Dhaka, Managing Director, AZDUSS Ltd. for his direction, help and motivation. • I express my sincere thanks to Mr. Sandeep Kumar Kautish (Faculty Guide), Mr. Amit Bhattacharya (Company Guide, Plant Manager, Marketing, Saras Dairy, Alwar [AZDUSS Ltd., Alwar]), Mr. L.C. Balai (Deputy Manager, Marketing) and Mr. Anil Kumar Mathur (Deputy Manager, Administration) for their support and cooperation. They provided me their valuable help and guidance during the training period. • I shall be highly indebted to the staff of the marketing department of Saras Dairy (AZDUSS Ltd., Alwar) for the moral support they extended to me during the SIP training. • I also thank the booth/parlour owners and the respondents whom I Final surveyed for giving me their3 08/14/09 Report valuable time and fruitful suggestions.

Declaration I hereby declare that this project work entitled “A study of performance and growth of Saras Dairy, Alwar” is my work, carried out under the guidance of my Faculty Guide Mr. Sandeep Kumar Kautish and my Company Guide Mr. Amit Bhattacharya. This report neither full nor in part has ever been submitted for award of any other degree. Smita Choudhary 6ND11765 ICFAI National College Alwar 08/14/09 Final Report 4

Preface • Marketing is one of the most important functions in business. It is the discipline required to understand customers' needs and the benefits they seek. • No study can be termed complete if there is no practical experience. Hence need for training has become a real necessity. The training aims to prepare students through a process of practical experience. Practical exposure no doubt has contributed a significant amount of knowledge to me along with real life experience and was an ideal combination of academic knowledge and practical experience. • Marketing activities can be regarded as lifeblood of all business concerns. In order to enhance the performance of marketing department and overall success of a business concern, study of consumer behavior and their satisfaction, sales and distribution channels, advertisement and competitive advantages is necessary. The performance of a company is very much important for an organization. • Saras Dairy, Alwar is in fact a very ideal location to gain practical experience. I am sure the experience gained in short duration, will go a long way in all my future endeavors. 08/14/09

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Company Profile • Alwar Dairy is a dairy registered under Rajasthan Cooperative Act and is owned by thousands of its milk producers members. It works on world famous Amul pattern. As all other cooperative dairies, Alwar Dairy is a part of three tier structure i.e. Dairy cooperative society at village level which form district level milk producer unions which are further federated in state level federation. All three entities are autonomous and linked to each other by provisions of their bye laws.  • Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar (AZDUSS Ltd., Alwar) is a cooperative organization registered under Cooperative Act with Registrar of Cooperative, Government of Rajasthan. It was established in the year 1972 to implement dairy development activities in the Alwar district, under Operation Flood Program. 08/14/09

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Information about the Company

Chairman

Mr. Ram Phal Gurjar

Managing Director

Mr. J.R. Dhaka

Establishment year in Alwar

1972

Type of organization

Cooperative society registered under the Rajathan Cooperative Act Three tier structure (village level, district level, state level)

Structure Employees

Permanent employees 197 Contract labor 150

Certifications

ISO 9001-2000 IS 15000 (HACCP Food Safety Management System)

No. of registered Cooperative Societies Products

795

New product

Ice-cream and softy to be launched soon

Address

Jaipur Road, Alwar 301001 [Rajasthan]

Telephone

(0144)-2702644(Customer care), 2701010, 2333926

Fax

(0144)-2342925

E-Mail

[email protected]

Turn Over (2006-07)

99.15 Crore

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Full cream milk, toned milk, double toned milk, skim milk, dahi, paneer, ghee, chhach, lassi, shrikhand

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From the Managing Director’s Desk Future Plans and Strategies

“To provide better milk procurement price along with technical input service to member producers. To procure maximum milk, provide safe and good quality milk and milk products at competitive price to consumers. Thrust will be for better financial health of milk union”

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Interview of the Managing Director • • • • • • • • • • • • • • • • • • • • • •

Question 1: Do you inspect the plant regularly? Answer: Yes, I inspect the plant daily. Question 2: What do you observe while inspecting the plant and the office? Answer: House keeping, hygienic condition, people are at work place. Question 3: What is the cooperation level of your employees? Answer: Cooperative Question 4: What are your future plans and strategies? Answer: Strengthening milk procurement and milk marketing. Question 5: What are the promotional activities you conduct to promote your products? Answer: Mouth publicity, awareness programmes. Question 6: Do you organize events or seminars for your customers to make them aware about your products? Answer: Yes Question 7: Do you conduct staff meeting for smooth working and better coordination? Answer: Yes. Question 8: Does any conflict arise between your staff members? If yes, what do you do to resolve the conflict? Answer: Conducting joint meeting. Question 9: Do you provide training to your staff? Answer: Yes Question 10: What measures do you take to ensure smooth functioning of the organization? Answer: Discipline, timely payment and personal benefits of staff. Question 11: Who is responsible for setting prices of Saras products? Answer: R.C.D.F., state body and milk union.

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Organization Chart of Saras

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Products of Saras Dairy, Alwar (Types of milk)

Product

Name

Packing Color

Price

FAT content

Packing

6.0%

SNF conte nt 9.0%

Full cream milk

Gold

Red

Rs.23/litre

Toned milk

Taaza

Blue

Rs.19/litre

3.0%

8.5%

Yellow

Rs.17/litre

1.5%

9.0%

½ and 1 litre ½ and 1 litre

Double toned milk

Smart

Skim milk

Lite

Purple

Rs.15/litre

0.5%

8.5%

½ and 1 litre

½ and 1 litre

Types of Fresh milk Products Product

Packing

Price

Chhach plain

500 ml

Rs.7

Chhach namkeen

250 ml

Rs.6

Lassi

250 ml

Rs.7

Paneer

200 gm and 1 kg

Rs.25 and Rs.120

Ghee

½ litre and 1 litre

Rs.85 and Rs.170

Dahi

200 gm cup

Rs.8

Shrikhand plain

100 gm cup

Rs.8

Shrikhand Kesar Pista

100 gm cup

Rs.9

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Objectives •

To identify the working • To do a comprehensive of the organization. analysis of the company and prepare the SWOT • To conduct an (Strengths, Weaknesses, exhaustive analysis of Opportunities and Threats) the marketing analysis report for the department. company. • To increase the sales of the products that are • To build a good rapport with the company’s staff. prepared and marketed • To by the organization. understand the organizational structure • To conduct an extensive and the top management study of the market team including the place and the customer’s Chairman, Managing needs. Director and the Officers. • To understand the core business of the • To do a practical and live observation of the work company, organization place. chart, key personnel in • To 08/14/09the Final Report 12 company, understand the manufacturing units, attitudes and behavior of

Tasks •

To conduct a comparative study of the growth of Saras (AZDUSS Ltd., Alwar) for three consecutive years. • To conduct survey of Saras parlours and booths to know their problems and sort them out. To get feedback from Saras parlours and booths. • To get feedback from customers and find their problems, satisfaction level, take their suggestions and help AZDUSS Ltd., Alwar to implement those suggestions. • To take responses from people who do not use Saras products and find the answer to the question, “Why they are not using Saras products”. • To judge the satisfaction level of the employees of AZDUSS Ltd., Alwar. • To do entries of daily supply in the supply register. • To take demand of various Saras products from parlour/booth owners and distributors through phone or personal contact in the prescribed proforma. • I was given the responsibility to guide 36 MBA students (working as interns inFinalSaras Dairy, Alwar) and assign 08/14/09 Report 13 them their tasks and duties on a weekly basis.

Targets TARGETS

Survey 500 people

Plant visit for 250 people

Survey 9 parlours and 210 booths

Participate in milk testing camps

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Increase sale

Take demand

Interview staff of the marketing department

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How I have benefited the Organization

Surveyed booths and parlours

Got to know their problems

Conveyed these problems to the MD

Took immediate action on my feedback Provided timely supply of material and cover stand and straws

Helped the MD find ways to keep his staff satisfied and loyal

Customers got better facilities

Got to know their satisfaction level Interviewed the staff of marketing department

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Enhanced the goodwill of the organization

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Strategy A marketing strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Questionnaire Design A questionnaire is a set of questions to be asked from respondents in an interview, with appropriate instructions indicating which questions are to be asked, and in what order. Questionnaires are used in various fields of research like survey research and experimental design. The questionnaire that I designed consists of two types of questions: • Open Ended Questions 08/14/09 16 • Close Ended QuestionsFinal Report

Analysis of Performance vs. Target S.No.

Factor

Target

Performance

Variance

1.

Plant visits

250

250

Nil

-

2.

Door to door surveys

500

500

Nil

-

3.

Booth surveys

210

205

5

4.

Parlour surveys

9

9

Nil

-

5.

Training to students

36

36

Nil

-

6.

Participation in free milk testing camp

6 days camp

Full attendance

Nil

-

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Reason

Due to lack of time

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Problems/Constraints/Limit ations •

The data collected is totally dependent on respondents’ views, which could be bias in nature. • Sometimes respondents do not give a response or give partial response. It is called non response error. The reason may be lack of knowledge or unwillingness to answer. • The sample size is small and it may not actually represent the whole population. • During the survey I came across unfavorable weather conditions like scorching heat and dust storm. • There is limited time available each day and lot of tasks have to completed in a day like preparing reports, conducting surveys, spend time at the office to gain knowledge, etc. • The study was conducted in the urban areas and it cannot be applied to the rural areas because the tastes and preferences of people of rural and urban areas differ vastly. • The answers given by the respondents are not always correct and may be misleading. • It is very time consuming to go door to door in order to conduct a survey of various homes and find their views and study their buying behavior. • Sometimes it becomes very difficult to convince people as many of them are not at all aware of Saras products and some are very stubborn. It becomes slightly difficult to convince such people but it is a challenging 08/14/09 Final Report 18 task and a good learning experience. • In some cases the respondent is not present at home.

Limitations of Saras Dairy • • • • •

Low availability of raw milk in summers. Dependence on milk producers. Dependence on monsoons. Milk can be produced not manufactured. Increasing competition in dairy industry.

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Learning in the Executive Training

• Bridge the gap between academic institution and corporate world. • Importance of job responsibility. • Increase milk procurement. • Distribution network adopted by Saras. • Milk processing • Preparation of milk products like ghee, dahi, paneer, chhach, lassi, shrikhand. • Marketing strategies adopted by Saras Dairy, Alwar • Conduct door to door interviews. • Test the milk sample for purity. • Organize plant visit for visitors. • Take demand of Saras products. • Build a good rapport with the staff. 08/14/09

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Table Showing Price Change Product

Price before 01st April 07

Price as on 07th April 07 and onwards

Price as on 01st May 07 and onwards

Price as on 01st July 07 and onwards

FCM (Gold)

Rs.20

Rs.21 per litre

Rs.22 per litre

Rs.23 per litre

Toned Milk (Taaza)

Rs.16

Rs.17 per litre

Rs.18 per litre

Rs.19 per litre

Double Toned Milk (Smart)

Rs.14

Rs.15 per litre

Rs.16 per litre

Rs.17 per litre

Skimmed Milk (Lite)

Rs.13

Rs.13 per litre

Rs.13 per litre

Rs.15 per litre

Ghee (1 litre)

Rs.160

Rs.165

Rs.170

Rs.170

Dahi (200 g)

Rs.6

Rs.7

Rs.8

Rs.8

Paneer (200 g)

Rs.20

Rs.22

Rs.25

Rs.25

Paneer (1 Kg)

Rs.100

Rs.110

Rs.120

Rs.120

Lassi (250 ml)

Rs.5

Rs.6

Rs.7

Rs.7

Chhach (Plain) 500 ml

Rs.6

Rs.7

Rs.7

Rs.7

Chhach (Namkeen) 250 ml

Rs.4

Rs.5

Rs.6

Rs.6

Shrikhand Plain (100 g)

Rs.7

Rs.7

Rs.8

Rs.8

Flavored Milk (200 ml)

Rs.10

Rs. 10

Rs.10

Rs.10

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ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR REGISTERED DCS

900 800 700

NO.

600 500

Series1 Series2

400 300 200 100 0

2001-02

2002-03 2003-04

2004-05 2005-06

2006-07

Series1 Series2

497

532

609

681

742

795

YEAR

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ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR MILK PROCUREMENT

90

QTY. 000,Kgs

80 70 2001-02

60

2002-03

50

2003-04

40

2004-05 2005-06

30

2006-07

20 10 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Series1

59.59

62.97

66.22

70.28

76.93

82.66

YEAR

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ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR LIQUID MILK SALE

140 000' LIT PER DAY

120 2002-03

100

2003-04

80

2004-05

60

2005-06

40

2006-07

20 0 Series1

2002-03 2003-04 2004-05 2005-06 2006-07 18.6

29.56

35.81

67.03

132.69

YEAR

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ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR TURN OVER

120 100

2001-02

Crore

80

2002-03 2003-04

60

2004-05

40

2005-06 2006-07

20 0 Series1

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

53.6

59.57

93.77

96.33

95.8

99.15

Year

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SWOT Analysis of Saras Dairy STRENGTHS   

WEAKNESSES

The products are very pure The products are extremely hygienic The plant is ISO 9001- 2000 and HACCP certified

  

Low availability of raw milk Dependence on farmers Reduced milk supply in summers

OPPORTUNITIES  

THREATS

Milk is an essential commodity which every body uses. There is no competitor of packed milk in Alwar.

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  

Milk can be produced not manufactured. There is always a possibility of a competitor entering the market. Competition in milk procurement

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Conclusions S.No.

Characteristic of Saras Dairy

Number of Points

1

Variety of milk provided by Saras Dairy

9

2

Prices are affordable

6

3

Round the clock availability

0

4

Quality and hygiene

10

5

Enough range of FMP

8

6

Staff is cooperative

9

7

Follow the ISO 9001-2000 norms

10

8

Give weightage to suggestions (Suggestions are always welcome)

8

9

Customer awareness camps and plant visits

7

10

Employee satisfaction

8

11

Market reputation

9

12

Advertisement and publicity

4

13

New product development

5

14

Channels of marketing

7 Total

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100

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Reasons of those people who are not using Saras products S.No.

Factor

% of the people surveyed

1

Absence of home delivery

23.6

2

Unknown about Saras products

10.2

3

Products are expensive

8.4

4

Priority to buffalo’s milk

10.8

5

Possess bad smell

5.8

6

Non availability of booth in the vicinity

6.6

7

Use Saras milk in case of emergency only

5.8

8

Faith in long association with the milkman

9.2

9

Not able to pay in cash

8.2

10

Consumers own cows and buffalos

4.8

11

No price consistency

6.6

TOTAL

100

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Awards/Rewards Received • • • • • •

•

As Saras is a semi-government organization, therefore, it does not provide any stipend to the interns or trainees. During my SIP training I received a letter of appreciation from Saras Dairy, Alwar (AZDUSS Ltd., Alwar) for doing my summer training with utmost dedication and sincerity. During training I received many compliments from the Managing Director of the organization and the members of the marketing department. In the training period the management of Saras was very satisfied with my performance. I got appraisal letter for good performance two times during my training period, one at mid term and other after completion of training. Copy of appraisal letter is enclosed. The Managing Director of the organization and my company guide offered me to join Saras Dairy, Alwar after completion of MBA on contract basis, As Saras is a semi government Organization, therefore it cannot give preplacement offer (PPO) in writing. My SIP company organized farewell party for me. At the time of farewell Managing Director of company appreciated the work done by me. He also said in his speech that you have created positive atmosphere.

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Copy of Appreciation Letter

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