Saras Final Sip Report Icfai

Final SIP Report

A REPORT ON “A STUDY OF PERFORMANCE AND GROWTH OF SARAS DAIRY”

BY SMITA CHOUDHARY Submitted on: 24th September 2007

SARAS DAIRY, ALWAR ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR ISO 9001-2000 AND HACCP CERTIFIED JAIPUR ROAD, ALWAR PH. 0144 -2702644, 2701010

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Final SIP Report

A REPORT ON “A STUDY OF PERFORMANCE AND GROWTH OF SARAS DAIRY”

BY SMITA CHOUDHARY MBA (III SEMESTER)

A report submitted in partial fulfillment of the requirements of PGPROGRAM (Class of 2007) ICFAI National College, Copies marked list: Mr. Sandeep Kumar Kautish (Faculty Guide) Mr. Amit Bhattacharya (Company Guide)

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TABLE OF CONTENTS Acknowledgement.........................................................................................4 Preface............................................................................................................5 Declaration.....................................................................................................6 List of tables and illustrations........................................................................7 Abbreviations.................................................................................................8 Company profile............................................................................................9 Departments of AZDUSS..............................................................................18 Abstract/Summary.........................................................................................24 Introduction....................................................................................................26 Body of thesis................................................................................................29 Research design/methodology.......................................................................33 Review of literature........................................................................................38 Empirical analysis..........................................................................................40 Findings..........................................................................................................44 Conclusion.....................................................................................................60 Recommendation...........................................................................................61 Appendix........................................................................................................63 References......................................................................................................71 Glossary.........................................................................................................72

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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, 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 surveyed for giving me their valuable time and fruitful suggestions.

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Final SIP Report

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.

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Final SIP Report

DECLARATION

I hereby declare that this project work entitled “A study of performance and growth of Saras Dairy, Alwar” is my original work, carried out under the guidance of my Faculty Guide Mr. Sandeep Kumar Kautish and my Company Guide Mr. Amit Bhattacharya. The facts and figures produced in this report are based on my own experience and study. This report neither full nor in part has ever been submitted for award of any other degree.

Smita Choudhary 6ND11765 ICFAI National College Alwar

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LIST OF TABLES AND ILLUSTRATIONS Table/figure

What it illustrates

Page no.

Figure1...........Map showing location of milk and milk product industry..............12 Figure2...........Organization chart for AZDUSS.....................................................16 Figure3...........People’s opinion about dahi............................................................44 Figure4...........People’s opinion about paneer........................................................44 Figure5...........People’s opinion about ghee...........................................................45 Figure6...........People’s opinion about lassi............................................................45 Figure7...........Survey result of 214 booths/parlours. .............................................46 Figure8...........Responses of 250 people who visited the plant..............................47 Figure9...........Survey result of 500 people............................................................48 Figure10.........Registered DCS...............................................................................52 Figure11.........Milk product manufacture...............................................................53 Figure12.........Milk procurement............................................................................54 Figure13.........Liquid milk sale..............................................................................55 Figure14.........Turn over.........................................................................................56 Figure15.........Golden advice for Saras..................................................................61 Table1.............Overview of Saras Dairy, Alwar.....................................................10 Table2.............Summary.........................................................................................24 Table3.............Tasks and targets assigned to me....................................................30 Table4.............Performance analysis......................................................................32 Table5.............AZDUSS Performance at glance....................................................38 Table6.............Saras milk supply of Alwar city......................................................39 Table7.............Change in prices of Saras products.................................................49 Table8.............Reasons of those people who are not using Saras products............50 Table9.............My observation of Saras products ..................................................57 Table10...........My observation of Saras dairy........................................................58 Table11...........SWOT analysis of AZDUSS...........................................................59

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ABBREVIATIONS 1. AZDUSS..........................Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar 2. DCS..................................District Cooperative Societies 3. FGS..................................Finished Goods Supply 4. FMP..................................Fresh Milk Products 5. HACCP............................Hazard Analysis Critical Control Points 6. ISO...................................International Standard Organization 7. OJT...................................On Job Training 8. SIP....................................Summer Internship Program 9. SKM.................................Skimmed Milk Powder 10. WMP................................Whole Milk Powder

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COMPANY PROFILE 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. AZDUSS Ltd., Alwar was established in the year 1972 keeping in mind the interests of the cattle rearers to implement dairy development activities in the Alwar district, under Operation Flood Program. The task of milk collection started from 22 nd August 1973. The main objective of the organization is to eliminate the role of intermediaries and give cattle rearers good value for the milk and prevent them from exploitation. The other objectives of the organization are: 1) To help in financial development of the villages and cattle rearers. 2) To help in the social and financial development of the rural milk producers. 3) To increase the milk producing capacity of the cattle. 4) To make available pure, healthy and high quality milk and milk products to the customers. AZDUSS receives direction and assistance from Central Government, State Government, RCDF Ltd. Jaipur and National Dairy Development Board, Anand from time to time. Presently the dairy plant has a capacity to process 1.50 lakh litre milk, prepare 10 M.T. milk powder and 9.0 M.T. ghee per day. Besides these the plant also prepares chhach, lassi, dahi, shrikhand, paneer and other milk products. The plant also has a capacity to pack 2.50 lakh litre milk per day. The Alwar plant of Saras (AZDUSS Ltd., Alwar) has been certified under internationally accepted quality and food safety management systems in accordance with ISO 9001-2000 with HACCP. The organization also helps in improvement of animal breed, providing animal health services, insurance of animals, women dairy project and providing vermi compost manure to the cattle rearers. The organization also provides cattle feed which is purchased from Nadbai and marketed in Alwar.

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Overview of Saras dairy, Alwar Table 1

Chairman

Mr. Ram Phal Gurjar

Managing Director

Mr. J.R. Dhaka

Establishment year in Alwar

1972

Employees

Permanent employees 197 Contract labor 150

Certifications

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

No. of registered Cooperative Societies

795

Products

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

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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UNDERSTANDING ISO-9001-2000 AND HACCP Introduction Adoption of ISO-9000 and HACCP standards for an organization are order of the day and need of the time to be on competitive edge in the Food Industry. It demonstrates the ability of dairies of Rajasthan Co-operative Dairy Federation to satisfy the needs of its customers and interested parties. Today, almost all the major unions of R.C.D.F. are certified under ISO 9001-2000 and HACCP, integrated quality and food safety management systems. Nevertheless, understanding of the concepts of ISO 9001-2000 and HACCP is confined to small section of top/middle management employees. Therefore, an effort is being made through this article in a precise and simplified manner to explain the basic concepts of ISO 9001-2000 and HACCP standards, which will surely help in better understanding of these standards among the rank and file of the organization.

HACCP HACCP is a food safety management system and has its origin in U.S. manned space programme to ensure food safety to the astronauts in late 1960s. The standard designed to keep food safe in outer space has now become a standard on the earth. What is HACCP:A system, which identifies, evaluates and controls hazards, which are significant for food safety. H- Hazard A- Analysis C- Critical C- Control P- Points

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Final SIP Report Map showing location of milk and milk products industry in Rajasthan Figure 1

Product Portfolio Saras Dairy, Alwar (AZDUSS Ltd., Alwar) prepares and markets the following products: 1) Milk (Available in ½ and 1 litre packs) a. Full cream

Milk

b. Toned Milk

(Blue)

(Red)

Gold

Taaza It contains FAT-3% and SNF- 8.5%

c. Double toned Milk (Yellow) d. Skim Milk

It contains FAT- 6% and SNF- 9%

Smart

(Purple)

Lite

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It contains FAT-1.5% and SNF-9% It contains FAT-0.5% and SNF-8.5%

Final SIP Report

2) Chhach a. Plain 500ml b. Namkeen

250ml

3) Lassi

250ml

4) Ghee

½ litre , 1 litre and 15 litre tin

5) Paneer

200 gm and 1 KG

6) Shrikhand

100 gm Cup

7) Dahi

200 gm Cup

8) Butter (Purchased from Jaipur Dairy, marketed in Alwar) 100 gm and 500 gm 9) Flavored milk (Purchased from Jaipur Dairy, marketed in Alwar) 200 ml Bottle

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From the Managing Director’s Desk:

The Managing Director of AZDUSS Ltd., Alwar is Mr. J.R. Dhaka. His future plans and strategies for the betterment of the organization are:

“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 of AZDUSS Ltd., Alwar I interviewed the Managing Director of the organization Mr. J.R. Dhaka on 22nd April 2007. Here are the excerpts from the interview. 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: Conduct 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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Final SIP Report Figure 2

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Who’s who of Marketing Department Hierarchy of Marketing Department Mr. J.R. Dhaka, M.D.

Mr. Amit Bhattacharya, Plant Manager

Mr. Lal Chand Balai, Dy. Manager

Mr. Mahesh Sharma, Asstt. Manager

Sales Supervisor

Sales Inspector

Root Supervisors

Skilled Workers

Computer Operators

Fourth Class

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DEPARTMENTS OF SARAS DAIRY (AZDUSS LTD., ALWAR) Marketing Department According to Peter Drucker, “The aim of marketing is to make selling superfluous.” Marketing department is one the most important department in every organization. The marketing activities of the organization include providing support to the milk unions within and outside the state. The marketing department conducts various surveys to know the needs and expectations of the customers. Marketing department is responsible for the sale of liquid milk. It decides the routes by which the milk is supplied as well as decides the number of booths in district and up country. It also appoints distributors for supply of milk from dairy plant to different areas of district and up country market. Presently in Alwar city there are 315 working booths and 10 parlours. AZDUSS Ltd., Alwar is also marketing various fresh milk products in Saras brand like chhach, lassi, paneer, shrikhand, dahi and long life products such as ghee, skim milk powder and whole milk powder. Various sales promotion techniques are used by marketing department to increase the sale of Saras products like        

Incentive schemes to dealers Consultancy and hiring of marketing agency Hoardings Glow sign board Gift hampers Banners Advertisement through local cable Wall paintings

Human Resource Department Human resource is the most valuable asset for any organization. A human resource manager is responsible to build up an effective workforce, handle the expectations of the employees and make sure that they perform at their best. In management human resource management deals with people. Each and every organization consists of people and an organization has to utilize their services, develop their skills, motivate them, and make sure that they remain committed towards the organization to achieve the goals of the organization. According to Byars and Rue “Human Resource Management encompasses those activities designed to provide for and coordinate the Human resources of an Organization.”

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Final SIP Report The human resource department manages the personnel serving the organization. The Human Resource Department performs the following functions: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Creation of posts and appointments. Verification of character and antecedents Pay of appointment Age limits Commencement of service Probation of appointments Certificate of health Record of age Consequence of particulars being false or suppressed Relinquishment of services by employees and discharge of probationers Termination of service of confirmed employee Superannuating and retirement Option to retire in certain cases Requirement of medical examination Retirement on medical grounds Date of retirement Privilege leave on retirement and encashment Postponement of retirement pending disciplinary action Voluntary retirement Abandoning duty after period of leave or otherwise Appointment of experts Scale of pay Calculation of joining time Overstay after joining time Deputation of employees Special appointments Entry, exits and search Identification, attendance and entry Provident fund Gratuity Leave Tours and traveling allowances Transfers Tours abroad Conveyance facilities Service record Address for communication Recall from leave

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•

Final SIP Report Shift working

Operations Department The operations department defines the working of the organization. Processes: The steps for preparation of various products are as follows: Process of making Ghee

Pasteurizer Cream Separator (To separate cream from milk)

Cream Tank (To collect the cream)

Butter Churn (Where the cream is churned to make butter)

Melting Vat (The butter is melted in Melting Vat)

Ghee Kettle (The melted butter boils in ghee kettle)

(This ghee is collected and stored in settling tank)

Packing Department (Where the ghee is packed in 1 litre and ½ litre packs)

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Final SIP Report

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Final SIP Report Plain Chhach: This is pasteurized milk which contains 3.1% fat and 8.6% SNF and acidity 1.08%. This milk is boiled at 40 degree celcius and 3% curd is added. It is diluted by 40% DTM. This is packed in 500 ml packets and supplied to the market for sale. Namkeen Chhach: In plain chhach various ingredients like 0.6% salt, 0.3% jeera, 0.15% rock salt and 0.1% pepper is added to make namkeen chhach and packed in 200 ml packets and supplied to the market for sale. Lassi: In plain chhach 12% sugar is added to make lassi and packed in 200 ml packets and supplied to the market for sale. Paneer Segment:

Milk from SILO

Paneer Vat (In this Vat the milk contains FAT 5.0% and SNF 9.0%.) The milk boils in paneer vat at 80 degree celcius and 2% citric acid is added in this milk to separate FAT, SNF and water

Paneer Hook (Then curded milk is pressed in paneer hooks for 45 minutes, then this paneer is put into chilled water at 5 degree celcius)

Packaging Department (Here the paneer is packed in 1 KG and 200 gm for sale)

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Final SIP Report Facilities: Saras Dairy, Alwar (AZDUSS Ltd., Alwar) provided the following facilities during operations:1) 2) 3) 4) 5) 6)

Safety for workers Medical facility First aid facility State of the art technology is used Insurance cover for workers Fire extinguishers are installed in the plant

Finance Department Financial Management is defined as making available the required funds at an acceptable cost and making sure that the funds are suitably invested according to the plan. This task is performed by the Finance Manager of the organization. Capital Structure Theories The two sources of long term finance for a firm are 1) Equity Capital: - Equity capital is the owner’s own capital invested in the business. 2) Debt Capital: - Debt capital is the capital raised from other sources which is invested in business. Arrange finances through loans from ICICI and HDFC. Earlier loans were taken from Alwar Gramin Bank. Final accounts are maintained yearly. Daily transactions are maintained in one day business. Budget is prepared by the Accounts Department. Financial Ratio Analysis

Ratio analysis is a widely used tool of financial analysis. It can be used to compare the risk and return relationship of a firm of different sizes. It is defined as the systematic use of ratio to interpret the financial statements so that the strengths and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two items/variables.

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Final SIP Report Ratio analysis is a systematic use of ratios to interpret the performance and status of the firm.

Current ratio: This ratio reveals the relationship between current assets and current liabilities. Current ratio = current assets / current liabilities Quick ratio/ acid test ratio: The acid test ratio is the ratio between quick current assets and current liabilities and is calculated by dividing the quick assets by the current liabilities. Quick ratio = Quick assets / current liabilities

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Final SIP Report

ABSTRACT/SUMMARY In this section I present the summary of targets achieved by me and the tasks performed by me during the SIP training in a tabular form. The supporting documents and the detailed information are present in the appendix section at the end of the report. This Summary contains details of tasks done by me from 19th March 2007 to 6th July 2007. Table 2

S.No. Targets/Tasks 1. 2.

3. 4.

5.

6.

7.

Purpose

To conduct Survey of To know their 500 people opinion about Saras products To organize plant To make them visit for 250 people aware of Saras products and quality To survey 9 parlours To know their and 210 booths problems and solve them To interview people To know their of the marketing satisfaction level. department To take demand from To give the various stations demand sheet to the FGS department Completed initial As part of the report, synopsis ICFAI interim report, curriculum. management thesis and final report.

Collected secondary data from various

To get complete knowledge about

Achievements

Date

Interviewed 500 people

19th March 2007 to 04th July 2007

Organized plant visit for 250 people

19th March 2007 to 30th June 2007

Surveyed 9 parlours and 205 booths Interviewed every person of the marketing department. Took demand from 100 stations

08th April 2007 to 18th June 2007

My Initial Report was declared the best in my batch

Initial Report 31st March 2007 Synopsis 07th April 2007 Interim Report 12th May 2007 Management Thesis 05th July 2007 Final report 06th July 2007 Got information about milk

Collected very significant data

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23rd April 2007 to 27th April 2007 13th May 2007 to 04th July 2007

departments

Saras

8.

Interviewed the Managing Director of the organization

9.

Participated in milk testing camp organized monthly

To gain an insight on the future plans and strategies To inform people about the quality of milk used by them

10.

I was given the responsibility to guide 36 MBA Students.

To reduce their work-load.

from the MIS and accounts department Understood the organization’s future plans and strategies Learnt how to test the milk sample for purity and to know its nutritional value It improved my communication skills and enhanced my knowledge.

Final SIP Report procurement Liquid milk sale, turn over 22/04/2007

20/03/07 to 25/03/07

15/05/07 to 04/07/07

Note:- I got Appreciation Letter from my SIP Company (Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd.) for good performance two times during the training (One at mid term and second after completion of training). Copy of Appreciation Letter is enclosed at the end of the report.

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Final SIP Report

INTRODUCTION I joined Saras Dairy, Alwar (AZDUSS Ltd., Alwar) as an intern on 19th March 2007. I am working in the Marketing Department of Saras. My main task was to conduct booth, parlour and customer surveys. American Marketing Association (AMA) defines marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Marketing deals with products. Product can be in the form of goods, services or ideas. Marketing is not just selling. According to Peter Drucker, “The aim of marketing is to make selling superfluous.” Marketing department is one the most important department in every organization. The marketing activities of the organization include providing support to the milk unions within and outside the state. The marketing department conducts various surveys to know the needs and expectations of the customers. I was assigned the task to survey parlours, booths and customers of Alwar city. In Alwar city there are 10 Saras parlours and 315 booths that are currently working. On the basis of my observation till date I expand the name SARAS as follows: S – Smart A – Association R – Responsible for A – Authentic S – Services I define SARAS as a Smart Association Responsible for Authentic Services.

OBJECTIVES The objectives of the Executive Training at Saras Dairy (AZDUSS Ltd., Alwar) are: 1) To identify the working of the organization. 2) To conduct an exhaustive analysis of the marketing department. 3) To increase the sales of the products that are prepared and marketed by the organization. 4) To conduct an extensive study of the market place and the customer’s needs.

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Final SIP Report 5) To understand the core business of the company, organization chart, key personnel in the company, manufacturing units, marketing channels, financial policies, etc. 6) To do a comprehensive analysis of the company and prepare the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis report for the company. 7) To build a good rapport with the company’s staff. 8) To understand the organizational structure and the top management team including the Chairman, Managing Director and the Officers. 9) To do a practical and live observation of the work place. 10) To understand the attitudes and behavior of the customers. 11) To analyze the sale of Saras milk in Alwar district and find out the factors which are affecting its sale.

LIMITATIONS Any research in any field topic gives some new results, discovering new areas etc. but there are always some limitations thereof. The limitations that I came across during the course of my training at Saras (AZDUSS Ltd., Alwar) are: 1)

2)

3)

4)

5)

Response Bias: Sometimes the respondents consciously or unconsciously misrepresent the truth, and then it amounts to response bias. Non response errors: 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. Fluctuations in weather conditions: During the survey I came across unfavorable weather conditions like scorching heat and dust storm. Scarcity of time: 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. Different tastes and preferences: 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.

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6)

7)

8)

Final SIP Report Inaccurate information: The answers given by the respondents are not always correct and may be misleading. Time consuming: 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. Small sample size: The sample size is small and it may not actually represent the whole population.

9)

Difficult to convince people: 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 task and a good learning experience.

10)

Limited information: Being a trainee, it became difficult to obtain some confidential information about the organization. This sometimes became a hurdle during the training.

11) Non availability of person: In some cases the person is not present at home. 12)

Dependence on respondents’ views: The data collected is totally dependent on respondents’ views, which could be bias in nature.

13) Difficult to recall: It is not possible and economically viable to revisit a person who was not present at home. 14) Lack of educated and cooperative respondents: Personal interviews are successful only when the respondents are educated.

The limitations that Saras Dairy comes across are: 1) Low availability of raw milk in summers. 2) Dependence on milk producers. 3) Dependence on monsoons. 4) Milk can be produced not manufactured. 5) Increasing competition in dairy industry.

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BODY OF THESIS Saras (AZDUSS Ltd., Alwar) is a very large and reputed organization and it gives me immense pleasure and satisfaction to be associated with such a reputed organization. The organization maintains state of the art quality and hygiene standards.

MAIN TASKS AND TARGETS 1) To conduct a comparative study of the growth of Saras (AZDUSS Ltd., Alwar) for three consecutive years. 2) To conduct survey of Saras parlours and booths to know their problems and sort them out. To get feedback from Saras parlours and booths. 3) To get feedback from customers and find their problems, satisfaction level, take their suggestions and help AZDUSS Ltd., Alwar to implement those suggestions. 4) 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”. 5) To judge the satisfaction level of the employees of AZDUSS Ltd., Alwar. 6) To do entries of daily supply in the supply register. 7) To take demand of various Saras products from parlour/booth owners and distributors through phone or personal contact in the prescribed proforma. To make maximum people aware of Saras. 8) To organize free testing camps to test the purity of milk. 9) To increase the sale of Saras products. 10) To implement human resource management techniques to increase the satisfaction level of the employees of AZDUSS Ltd., Alwar. 11) To interview 500 homes in four months to know their views and opinions about Saras products. 12) To organize plant visit for 250 people in four months to show them the plant and tell them the processes that the Saras milk undergoes and how different Saras products are prepared. The purpose of organizing such visits is to tell the people about the many advantages that Saras offers them like

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Final SIP Report a. Hygienic plant b. High nutritional value of its products c. Good storage facilities d. Cleanliness of the plant and storage area 13) I was given the responsibility to guide 36 MBA students (working as interns in Saras Dairy, Alwar) and assign them their tasks and duties on a weekly basis.

Targets and Tasks Assigned to me Table 3

S.No.

Targets/Tasks

Date

1.

To conduct Survey of 500 people

19th March 2007 to 04th July 2007

2.

To organize plant visit for 250 people

19th March 2007 to 30th June 2007

3.

To survey 9 parlours and 210 booths

08th April 2007 to 18th June 2007

4.

To interview people of the marketing department To take demand from various stations

23rd April 2007 to 27th April 2007

6.

Completed initial report, synopsis interim report, management thesis and final report.

7.

Collected secondary data from various departments Interviewed the Managing Director of the organization Participated in milk testing camp organized monthly I was given the responsibility to guide 36 MBA Students.

Initial Report 31st March 2007 Synopsis 07th April 2007 Interim Report 12th May 2007 Management thesis 05th July 2007 Final report 06th July 2007 Got information about milk procurement, Liquid milk sale, turn over 22nd April 2007

5.

8. 9. 10.

13th May 2007 to 04th July 2007

20th March 2007 to 25th March 2007 15th May 2007 to 04th July 2007

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My Daily Schedule My tasks at the On Job Training were to study the working of the Saras plant, gather complete information about Saras, conduct market and booth surveys and organize visits for people to see the Saras plant. The daily schedule that I follow to complete these tasks is:  Sign in at the company office at 09:30 AM  Make a plan for the whole day between 09:30 AM to 10:30 AM.  Go to the field to conduct market survey and booth survey from 10:30 AM to 12:30 PM.  Collect information about the Saras dairy from various departments from 12:30 PM to 01:30 PM.  Lunch time is from 01:30 PM to 02:30 PM.  Organize visits for the visitors from 02:30 PM to 03:30 PM.  Visit the plant to understand the working of the plant from 03:30 PM to 04:30 PM.  Discuss with my company guide the tasks for the next day from 04:30 PM to 05:00 PM.  Sign out of the company office at 05:00 PM. Note: 1. Every Saturday went to Jaipur to submit my weekly report and attend the session organized by ICFAI National College, Jaipur for student development. 2. Sunday was weekly off.

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Performance Analysis I started my SIP training at Saras dairy (AZDUSS Ltd., Alwar) on 19 th March 2007. I was given the responsibility of surveying 210 booths, 9 parlours, 500 people and organize plant visit for 250 people. I was asked to increase awareness about Saras products amongst the general public by organizing plant visits for them. For this I organized plant visit for many people and also mass visits for Another task assigned to me was to be a part of the milk testing camps organized by the marketing department of Saras (AZDUSS Ltd., Alwar). For this we went to various locations of Alwar city and tested the milk samples brought by the general public. We provided them instant results and explained them the advantages of using Saras products. Many of them were convinced that Saras products are better as compared to the products provided by local vendors. This has increased the sale of Saras products, specially milk. Table 4

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 M.B.A. 36 students Participation in free 6 days milk testing camp camp

36

Nil

Full attendance

Nil

6.

Page 33 of 73

Reason

Due to lack of time -

Final SIP Report

RESEARCH DESIGN/METHODOLOGY Resarch design is defined as a systematic and objective process of gathering, recording and analyzing data that provides information to guide business decisions. The process of business strategy can be divided into three phases – planning, execution and report preparation. The planning phase begins from problem/opportunity identification and leads to selection of the sampling procedure. Data collection and evaluation can be described as the execution phase of the business research process, while report generation can be considered as the last phase. Steps in the research design process Identifying and Defining Problem/Opportunity

P L A N N I N G

Planning the strategy

Selecting the method of strategy

Selecting a Sampling Procedure

E X E C U T I O N REPORT PREPRATION

Data Collection

Evaluating the Data

Preparing and Presenting the Report

Page 34 of 73

Final SIP Report Marketing research is defined as the formal process of collecting information, analyzing the result, communicate the findings and implementation in terms of marketing actions. Analysis of information is used in evolving some marketing and financial decisions. The research methodologies used to collect data are of two types: 1) Primary method: In this type of method data is collected with the help of face to face interaction with a person. 2) Secondary method: It does not involve face to face interaction. In this type of method data is collected through other sources like internet, books, etc. In this project I have used both the methodologies to collect the data. Primary Method: 1) I have used primary method to collect data from various departments of Saras Dairy, Alwar (Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar) by talking to heads and staff members of each department. 2) Data is also collected by preparing a questionnaire and asking the respondents to fill up the questionnaire. 3) Data is also collected by conducting one to one interviews. Secondary Method: 1. I have used secondary method to collect some data from the annual accounts of the company Saras Dairy, Alwar (AZDUSS Ltd., Alwar) 2. Data is also collected from the Annual publication of Saras (Magazine) Research methodology adopted for the study During my research I have tried to  Assess the brand image that the company holds in the minds of the customers.  Assess the impact of promotional activities.

Page 35 of 73

Final SIP Report

METHOD OF SURVEY

Survey Research Research is the search for, and retrieval of, existing, discovery or creation of new information or knowledge for a specific purpose. Research has many categories, from medical research to literary research. Marketing research is a form of business research. A survey research is defined as the method of collecting information by asking a set of pre formulated questions in a predetermined sequence in a structured questionnaire to a sample of individuals drawn so as to be representative of a defined population. Some of the common methods of conducting surveys are:  Personal Interviews: Personal interviews are characterized by the presence of four entities i.e. the researcher, the interviewer, the interviewee and the interview environment.  Telephonic Interviews: Telephonic interviews are judged as one of the best costeffective alternatives to face-to-face interviews and mail surveys.  Self-administered Interviews: Self administered interview is an interview in which the questionnaire is filled out without the intervention of an interviewer.  Mail Surveys: Mail survey is a survey where questionnaire is sent to the qualified respondents by e-mail.

Method of survey research used by me: Personal Interview (Door to Door Interview)

Reasons for Choosing Personal Interview: I chose the personal interview method for survey research due to the following reasons: 1) Feedback Opportunities: In face to face interview, doubts of the interviewee can be clarified. Also the respondent can be assured confidentiality. 2) Probing: The interviewer in a personal interview can explore the respondent for complex answers. The detailed information so obtained is very useful to the researcher.

Page 36 of 73

Final SIP Report 3) Length of Interview: The length of interview is better in personal interviews. In a personal interview, chances of the respondents answering all the questions are greater as compared to other non-personal survey methods. Personal interviews lead to improvement in the quality of responses.

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. Questionnaire design is a vital issue in interviewing. A properly designed questionnaire can tap the necessary information from the respondent. Therefore, researchers always design a tactful set of questions to probe and prompt the interviewee to give useful answers. Questionnaires fall under various categories, such as structured, unstructured, disguised and undisguised. In the questionnaire I have used two types of questions: Open Ended Questions In open ended question design each question has a series of lines (or a blank space) in which the respondents are encouraged to write, in their own words, how they feel about the topic in question. Close Ended Questions Closed question provide a set of answers that the designer of the survey (based on prior experience and responses in the pilot survey) considers will accommodate the majority of potential responses. A questionnaire serves four functions: Enables data collection from respondents  Lends a structure to interviews  Provides a standard means for writing down answers  Help in processing collected data

Page 37 of 73

Final SIP Report The various steps in questionnaire design are:1) Preliminary decisions 2) Question content 3) Response format 4) Question wording 5) Questionnaire sequence 6) Questionnaire pre-test, revision and final draft

Page 38 of 73

Final SIP Report

REVIEW OF LITERATURE The detailed view of the related work did in the past by others

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR PERFORMANCE AT GLANCE Table 5

S.No.

Particulars

01-02

02-03

03-04

04-05

05-06

06-07

1

Registered DCS

497

532

609

681

742

795

2

Functional DCS

368

442

465

564

599

632

3

Prop. DCS (CC)

366

388

454

451

462

443

4

DCS Membership

59588

62966

66217

70281

76931

82655

5

Milk Procurement (per day)

87.74

88.79

97.82

108.9

89.65

79.54

6

Rate / KG (Rs)

9.98

10.77

13.56

12.29

13.22

15.05

7

Milk payment (Rs.Lakhs)

3195

3491

4856

4884

4325

4370

8

City Supply (TLPD)

15.5

18.62

29.52

35.71

67.03

132.69

9

M.D. Supply (TLPD)

75.71

101

144.78

143.5

120.05

0

10

Ghee Sale Total MT

817

652

485.45

1056.72

683.16

941.63

11

Ghee Sale (DCS) MT

104

79

80.66

203.48

213.83

225.1

12

Cattle Feed Sale (MT)

3035

3363

4636

6333

7001

6921.35

13

Turn Over (Rs. Crore)

53.6

59.57

93.77

96.33

95.8

99.15

14

Net Profit (Rs. Lakhs)

64.14

69.43

67.56

8.88

2.25

57.4

Page 39 of 73

Final SIP Report Table 6

Table showing Saras Milk Supply of Alwar City with percentage growth Month

00-01

01-02

Gro. %

01-02

02-03

Gro. %

02-03

03-04

Gro. %

Apr

10259

9788

-4.59

9788

10214

4.35

10214

13094

28.20

May

9757

10944

12.17

10944

12946

18.29

12946

15341

18.50

Jun

9620

9862

2.52

9862

11683

18.46

11683

16806

43.85

Jul

10434

9975

-4.40

9975

12090

21.20

12090

17114

41.56

Aug

10431

10283

-1.42

10283

11322

10.10

11322

15654

38.26

Sep

9337

10255

9.83

10255

9890

-3.56

9890

16368

65.50

Oct

7910

8361

5.70

8361

9985

19.42

9985

13530

35.50

Nov

6699

7818

16.70

7818

8848

13.17

8848

11777

33.10

Dec

5883

7329

24.58

7329

8451

15.31

8451

10682

26.40

Jan

5733

6805

18.70

6805

8275

21.60

8275

10282

24.25

Feb

6904

8063

16.79

8063

9716

20.50

9716

11375

17.07

Mar

7280

8978

23.32

8978

10857

20.93

10857

12591

15.97

Total

10024

10846

120

108461

124277

180

124277

164614

388

Avg.

8354 7

9038 1

8

9038

10356

15

10356

13718

32

Month

03-04

04-05

Gro. %

04-05

05-06

Gro. %

05-06

06-07

Gro. %

Apr

13094

14181

8.30

14181

14683

3.54

14683

18855

28.41

May

15341

15318

-0.15

15318

18668

21.87

18668

19975

7.00

Jun

16806

16558

-1.48

16558

18371

10.95

18371

20888

13.70

Jul

17114

15623

-8.71

15623

16857

7.90

16857

21958

30.26

Aug

15654

14357

-8.29

14357

17102

19.12

17102

19572

14.44

Sep

16368

12392

-24.29

12392

15770

27.26

15770

20807

31.94

Oct

13530

13005

-3.88

13005

15179

16.72

15179

18197

19.88

Nov

11777

10828

-8.06

10828

14026

29.53

14026

16542

17.86

Dec

10682

10208

-4.44

10208

13177

29.09

13177

16012

21.51

Jan

10282

10807

5.11

10807

13352

23.55

13352

16279

21.92

Feb

11375

11640

2.33

11640

15241

30.94

15241

18034

18.33

Mar

12591

14110

12.06

14110

15314

8.53

15314

18593

21.41

Total

16461

15908

-31

159087

187740

229

187740

225712

247

Avg.

13718 4

13252 7

-3

13252

15645

18

15645

20519

20

Page 40 of 73

Final SIP Report

EMPIRICAL ANALYSIS Each day is a new learning experience and so was the case during my Executive Training. Every day I learnt something new. During my training I learnt the following things: 1) First and foremost I learnt to practically apply the knowledge gained through theory classes and bridge the gap between academic institution and corporate world. 2) Understood the importance of job responsibility. 3) How coordination is maintained between different departments like marketing, human resource, administration. 4) Learnt the ways to increase milk procurement. 5) Understood the distribution network adopted by Saras. 6) Understood how the management keeps its employees satisfied and retain them. 7) The processes that the milk passes through before reaching the final consumers. 8) The processes by which various milk products like ghee, butter, dahi, paneer, chhach, lassi, shrikhand, etc. are prepared. 9) The marketing strategies adopted by Saras Dairy, Alwar (AZDUSS Ltd., Alwar). 10) Learnt how to conduct door to door interviews. Initially I felt slightly uncomfortable conducting the interviews but with time I learnt a lot and became very comfortable conducting door to door personal interviews. 11) Learnt to participate in milk testing camps and test the milk sample for purity. 12) Learnt to organize plant visit for visitors. 13) Learnt to take demand of Saras products from various stations through phone or personal contact in the prescribed proforma. 14) Learnt how to build a good rapport with the staff. I was very successful in building good rapport with the staff of the marketing department and other departments of the organization as well.

Page 41 of 73

Final SIP Report I worked as an intern in Saras dairy (AZDUSS Ltd., Alwar) which processes and markets milk products which are quickly perishable. Therefore the marketing strategy of Saras is very different from others. In this type of organization it is necessary to maintain a balance between demand and supply and I learnt very well how to maintain a balance between demand and supply. During the four month association with Saras I deeply understood many facts about milk which were not in my knowledge earlier. Frequently Thought Questions Many times I used to think that what is milk? How is it useful for us? What are its constituents and many more? During my association with Saras I found answers to all my questions and queries. Question 1: What is milk? Answer: Milk is a lacteal secretion from the mammary glands of a healthy milky animal free from colostrum. Milk has got mainly three constituents – fat (3 to 6%), snf comprising of proteins, lactose, minerals etc (8 – 9%) and water (85%). Question 2: Is Saras milk prepared from powder? Due to the calving cycle, cow / buffalo remain in milk for 8-9 months in a year. The high yielding and low yielding period is different in case of cow or buffalo, but generally winters are called flush season due to high production of milk whereas summers are called lean season when production is less. On the other hand, the demand is almost constant through out the year. Hence during flush season, fat part of milk is preserved in form of white butter and SNF in form of powder after evaporating water. These two constituents are mixed and processed during lean season to meet the demand. So powder is nothing but preserved SNF / fat of milk. Question 3: How is milk useful for us? Milk is nature’s perfect food for all ages. It has almost all the vital nutrients needed for growth and well being of human body. Milk is the richest natural source of calcium and essential amino acids. It is good for bone formation. It is particularly beneficial for people recovering from sickness, for sportsmen, for old people, for pregnant women and for growing children. The doctor recommends a minimum daily intake of 250 ml. Or one and a half glass of milk for every person. Normal cow milk has 4%fat and buffalo milk 6% fat. There is another important constituent of milk- solids not fats these solids – not – fat. (or SNF, as it is commonly called) comprise of proteins, minerals, carbohydrates and vitamins. For milk to be nutritionally balanced, it has to contain both fat and solids- not- fat in right proportion.

Page 42 of 73

Final SIP Report Question 4: Why pasteurized milk is better than vendor’s milk? Saras milk strictly conforms to PFA standards to comply with the legal requirement and to provide wholesome nutritive food to the consumers. This means when we are buying Saras milk, we are sure we are getting value for our money. We are sure of getting the “nature’s perfect food” full 500 ml, 100ml, in every pack. We are sure of getting milk which has longer life because of its superior bacteriological quality. The loose milk available from local vendors in Alwar city often does not conform to PFA standards. It has fat and less solid-notfat than required. If our milk contains 0.5% less fat or SNF, we are paying up to 60 paise per pouch extra. Besides, it is not uncommon to find artificial preservatives, not permitted by law being added to loose milk. This has been authenticated in a recent campaign run by this Sangh, in which it was found that more than 60% to 70% of milk sold by private traders and loose milk contain artificial preservatives, not permitted by law. By compromising on the quality of milk we may be depriving our children of essential life building proteins and nutrients that only pure, high quality milk offers.

Page 43 of 73

Final SIP Report

“SO, INSIST ON SARAS MILK JUST !!!!!

BECAUSE ONLY SARAS MILK GIVES YOU

TRUE VALUE FOR YOUR MONEY.

IT IS PURE, FRESH, NUTRITIOUS, HYGIENIC AND CREAMY.”

Page 44 of 73

Final SIP Report

FINDINGS The following pie charts show the opinion of people about various Saras products. Figure 3

People's opinion about Dahi

13%

36%

15%

Like very much like somew hat neutral dislike somew hat dislike very much

18% 18%

Figure 4

People's opinion about Paneer

5%

5%

10% Like very much like somew hat 51%

neutral dislike somew hat dislike very much

29%

Page 45 of 73

Final SIP Report Figure 5

People's opinion about Ghee

10%

3%

Like very much

12%

like somew hat neutral dislike somew hat 13%

62%

dislike very much

Figure 6

People's opinion about Lassi

10%

14%

Like very much 44%

like somew hat neutral

8%

dislike somew hat dislike very much

24%

Note: The graph only shows the opinion of the people I surveyed and not of the general public.

Page 46 of 73

Final SIP Report

Survey Results

During the course of SIP training I conducted survey of 9 Saras parlours, 205 booths. The survey was conducted to judge their satisfaction level. The results of the survey are presented graphically using pie chart as follows: Figure 7

Survey result of 214 Booths/ Parlours Figure 8 12 2 6% 1%

35 16%

102 48%

highly satisfied very much satisfied fairly satisfied unsatisfied highly unsatisfied

63 29%

Page 47 of 73

Final SIP Report I organized plant visit for 250 people during the four months of my SIP training. I explained them the working of Saras plant. I also told them how Saras products are better than the products supplied by local vendors and the advantages of using Saras products. Each and every person gave his/her response and I graphically present their responses using pie chart as follows:

Figure 8

Responses of 250 people who visited the plant 7 11 4% 3% 23 9% Highly convinced

29 12%

119 48%

Very much convinced

Fairly convinced Unconvinced Highly unconvinced Can’t say

61 24%

Page 48 of 73

Final SIP Report I surveyed 500 people. The people I interviewed were randomly selected from various colonies of Alwar. Every person has a different opinion, some say Saras products are excellent, some say they are good, some feel they are poor and some find them average. I present the result of the survey graphically using pie chart as follows:

Figure 9

Survey result of 500 people 12 14 21 2% 3% 4% 66 13%

Excellent Very good Good Poor

289 58%

98 20%

Page 49 of 73

Very poor Can’t say

Final SIP Report Table 7

Table showing change in price of different Saras products 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

Shrikhand Kesar Pista (100 g) Rs.8

Rs.8

Rs.9

Rs.9

Flavored Milk (200 ml)

Rs. 10

Rs.10

Rs.10

Rs.10

Page 50 of 73

Final SIP Report During the course of my training I surveyed some people who for some or the other reason are not using Saras products or are unable to use Saras products. The reasons they gave are presented below in a tabular form.

Reasons of those people who are not using Saras products Table 8

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

Page 51 of 73

Final SIP Report As my project title is “A study of performance and growth of Saras Dairy, Alwar”, therefore I did a comparative analysis of many factors related to performance and growth of the organization like number of registered societies, milk procurement, liquid milk sale and turnover from 2001-02 to 2006-07. I present the statistical figures below using column chart.

Page 52 of 73

Final SIP Report ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR REGISTERED DCS Figure 10

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

YEAR

Page 53 of 73

742

795

Final SIP Report ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR MILK PRODUCT MANUFACTURE Figure 11

QTY. IN M.T.

1500 1000

GHEE SMP WMP

500 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 GHEE

720

678

607

612

754

1162

SMP

207

132

12

243

399

1118

WMP

290

342

255

80

197.5

155

YEAR

Page 54 of 73

Final SIP Report ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR MILK PROCUREMENT Figure 12 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

YEAR

Page 55 of 73

76.93

82.66

Final SIP Report ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR LIQUID MILK SALE Figure 13

000' LIT PER DAY

140 120 100

2002-03 2003-04

80

2004-05 2005-06 2006-07

60 40 20 0 Series1

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

29.56

35.81 YEAR

Page 56 of 73

67.03

132.69

Final SIP Report ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR TURN OVER Figure 14

120 100

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Crore

80 60 40 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

Page 57 of 73

Final SIP Report

My observation about various Saras products with respect to people’s liking Table 9

Product Product FCM (Gold)

Excellent

Very Good

√

Double toned milk (Smart) Skimmed milk (Lite)

√ √ √

Dahi

√

Paneer

√

Lassi

√

Chhach (Plain)

√

Chhach (Namkeen)

Poor

√

Toned Milk (Taza)

Ghee

Good

√

Shrikhand (Plain)

√

Shrikhand (Kesar Pista)

√

Flavored Milk

√

Page 58 of 73

Very Poor

Final SIP Report My Observation of Saras Dairy (AZDUSS Ltd., Alwar) Now I have completed four months as an intern in Saras Dairy (AZDUSS Ltd., Alwar) and during these four months as a trainee I carefully observed various aspects of the organization. Here, I am presenting my observations and findings using the Constant Sum Scale. I have divided a total of 100 points into various attributes that I observed. The maximum marks that can be allotted to a factor are 10. The various attributes that I observed and the points I allocated to each observation are presented below in tabular format. Table 10

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

8

9

Give weightage to suggestions (Suggestions are always welcome) Customer awareness camps and plant visits

10

Employee satisfaction

8

11

Market reputation

9

12

Advertisement and publicity

4

13

New product development

5

14

Channels of marketing

7 Total

Page 59 of 73

7

100

Final SIP Report

SWOT ANALYSIS OF SARAS DAIRY (AZDUSS Ltd., ALWAR)

Table 11

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

OPPORTUNITY

THREATS

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

 Milk can be produced not manufactured.  There is always a possibility of a competitor entering the market.

Page 60 of 73

Final SIP Report

CONCLUSIONS During the four months of my training at Saras Dairy (AZDUSS Ltd., Alwar) and the surveys I conducted till date, I reached the following conclusions: 1) Saras (AZDUSS Ltd., Alwar) is a very large and reputed organization and it gives me immense pleasure and satisfaction to be associated with such a reputed organization. 2) The organization maintains state of the art quality and hygiene standards. 3) A coin has two sides and it holds true for every organization, no matter how large or reputed it is, there are always some small shortcomings along with the plus points of the organization and Saras is no different. 4) Prices of Saras products have been hiked three times during my SIP. I observed that due to frequent price hike people are losing faith in Saras and they think that Saras is very unreliable and has no consistency in price. This factor has resulted in fall in sales. 5) Many people do not have faith in Saras products. They still believe that the products made by the local dairies are better. 6) Some people feel that Saras products possess bad smell and that’s why they don’t use Saras products. 7) Saras parlours/booths also face problems because sometimes there is no timely supply of products to them. They receive the products late in the day and then these products have to be sold the next day. People do not accept such products. 8) People believe that the Saras products are costly. 9) During the course of customer survey I also found the general public’s opinion about different Saras products.

Page 61 of 73

Final SIP Report

RECOMMENDATIONS On careful observation of the Saras dairy during the training period, I have the following suggestions for Saras dairy, which on proper implementation may provide a big boost to it. 1) Home delivery facility should be provided. 2) Increase in advertisement and publicity. 3) Motivation program for booth and parlour owners. 4) All information regarding Saras dairy and its products should be available on internet. 5) The policy that an organization must follow in order to run successfully is…..

Golden Advice for Saras

Rule #1

The customer is always right!

Rule #2 If the customer is ever wrong, reread Rule #1

Figure 15

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Final SIP Report 6) Marketing department should be well furnished and attractive. 7) There should be consistency in price. 8) Alwar dairy should give milk producers competitive prices and facilities. 9) Glow sign boards should be provided to booth and parlour owners. 10) New products should be launched like ice-cream. 11) An organization like Saras should have a reception and a receptionist. 12) To popularize ‘Shrikhand’ free samples may be distributed at some public places. 13) Inspection and frequent check of booths and parlours. 14) Good coordination between marketing department and booths/parlour owners. 15) Departments should be interconnected through computer network. 16) Employee identification card should be provided to employees of Saras. 17) New technology should be adopted from national and international company’s experts in the field.

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APPENDIX I prepared many questionnaires to perform the survey task assigned to me. These questionnaires were first shown to the officials of the Saras dairy and after their acceptance and consent they were implemented to do the assigned task. The various questionnaires prepared by me to conduct surveys and interviews are enclosed in this section.

Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar Date:_________

Questionnaire for Customers 1) Name : ___________________________________ 2) Husband’s Name: ____________________________________ 3) Address : ___________________________________ ___________________________________ ___________________________________ 4) Profession : ___________________________________ 5) Age : ___________________________________ 6) Are you aware about Saras? Yes No 7) Number of family members : _______________ Adults __________ Children _________ 8) Do you use Saras Products : 9) If yes which products do you use? Milk :

Full Cream Butter

Chhach :

Plain

Yes

Toned Dahi Namkeen

No Double Toned

Ghee

Paneer

Lassi :

Sweet

Skimmed s

Shrikhand

10) Are you satisfied with quality of Saras products? Yes No 11) Do you think that Saras products can be improved further? Yes No 12) Do you have any suggestions for further improvement of Saras products? __________________________________________________________________ 13) Which is your nearest Saras booth? ______________________________________________________________

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Final SIP Report 14) Are number of booths sufficient in your locality? Yes No 15) Are all products available at the booth? Yes No 16) Do you think Saras should start the system of home delivery? Yes No 17) Do you want Saras to introduce any new product? Yes No If yes, which types of products? ____________________________________________________________ 18) Are you satisfied with the price of Saras Products? Yes No If not why and what should be the right price? _______________________________________________________________ 19) Any Suggestions __________________________________________________________________

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Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar Questionnaire to Obtain Feedback from the Booth/Parlours 1) Name of the Booth/parlour: _________________________________ 2) Address : __________________________________ __________________________________ __________________________________ 3) Products available with the booth/parlour Milk : Full Cream Toned Double Toned Skimmed Butter Chhach : Lassi

:

Plain

Dahi

Ghee

Namkeen

Paneer

Shrikhand

Milk Cake

Sweet

4) Do you get timely supply from Saras? Yes No 5) Do you get proper storage facilities to store the products? Yes No 6) Average daily sales of the products? Milk : _____________________________ Dahi : _____________________________ Ghee : _____________________________ Chhach : _____________________________ Lassi : _____________________________ Paneer : _____________________________ 7) What measures do you take to improve sales? _____________________________________________________________________ 8) Does management of Saras help you to improve sales? Yes No 9) What support do you expect from the management of Saras to boost sales? _____________________________________________________________________ 10) What source do you use to convey your demand to the plant? _____________________________________________________________________ 11) Does Saras give you any credit facility and what are the payment terms and conditions? _____________________________________________________________________ 12) What are the timings of your booth/parlour? _____________________________________________________________________ 13) How much manpower is required to run the booth/parlour? ______________________________________________________________________

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Final SIP Report 14) Are you satisfied with the profit margins you get? Yes No 15) Do you have arrangement of home delivery for regular customers? Yes No 16) How do you collect your payment from customers, monthly or cash and carry? _____________________________________________________________________ 17) Do you have any alternative source of electricity in case of power failure to keep your products safe? Yes No 18) Do you sell other products (like bread, biscuits, eggs, etc.) along with the Saras products? Yes No 19) Are you able to sell the received products daily or you are left with some unsold products? Yes No 20) What do you do of the unsold products? ______________________________________________________________________ 21) How do you handle the excessive demand for any product? ______________________________________________________________________ 22) Does the marketing department of Saras help you in fulfilling the excessive demand? ______________________________________________________________________ 23) Does the marketing department of Saras ask about your problems? Yes No 24) Does the marketing department of Saras solve your problems? Yes No 25) Any suggestions: ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

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Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar Questionnaire to Obtain Employee Feedback 1) Name 2) Department 3) Designation 4) Address

: ______________________________________ : ______________________________________ : _____________________________________ : ______________________________________ ______________________________________ ______________________________________ 5) No. of years in service: ______________________________________ 6) Timings : ______________________________________ 7) Job responsibility : ______________________________________ 8) Satisfaction Level : Extremely Not Satisfied Not Satisfied Satisfied 9) Facilities Provided:

Very Satisfied

Medical

L.T.A.

Extremely Satisfied Loan Facility

Conveyance Allowance

Traveling Allowance

House Rent Allowance

Welfare Schemes

10) If you get better remuneration and opportunity in some other company will you leave Saras Dairy, Alwar? Yes No 11) How much time do you devote for field work in a day? ________________________________________________________________________ 12) Are you satisfied with the policies of the company with respect to customer? Yes

No

13) What steps do you take to fulfill the demand for milk when supply is short? ________________________________________________________________________ 14) What are the means of advertising you use? Electronic media

Print media

Banners

Hoardings

Door to door

marketing 15) Do you set well defined targets for each booth? Yes

No

16) What are the timings of the booths? ________________________________________________________________________ 17) Do you prepare each product marketed by you at the Alwar plant? Yes No

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Final SIP Report 18) Which products do you purchase from other plants of Saras Dairy? ________________________________________________________________________ 19) What do you do with the unsold products left after the date of expiry? ________________________________________________________________________ 20) How do you check the synthetic milk producers operating illegally in the market? ________________________________________________________________________ 21) How do you prevent duplicacy of your brand? ________________________________________________________________________ 22) Are you exploring the market outside Rajasthan? If yes, where? ________________________________________________________________________ 23) Do you get any incentives for meeting the targets? ________________________________________________________________________ 24) What mechanism do you use to set prices of your products? ________________________________________________________________________ 25) Do you take feedback from the customers? Yes No 26) Do you organize any camp to solve the problems/grievances of the customers? Yes No 27) Do you work on holidays also or do you adopt rotation system? ________________________________________________________________________ 28) Do you have any plans to launch new products in the market in the near future? Yes No 29) Do you see any difference between your product and the product coming from the milk producers? Yes No

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Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar Questionnaire for the Managing Director of the Organization 1) Name 2) Address

: ____________________________________ : ____________________________________ ____________________________________ ____________________________________ 3) Phone No. : ____________________________________ 4) Timings : ____________________________________ 5) No. of years in AZDUSS Ltd., Alwar as MD ______________________________________________________________________ 6) Place of work before coming to Alwar ______________________________________________________________________ 7) Are you satisfied with the working of Alwar Dairy plant? Highly Satisfied

Considerably Satisfied

Unsatisfied

Highly Unsatisfied

Reasonably Satisfied

8) Number of staff members Permanent

Contract

9) Do you inspect the plant regularly? Yes

No

10) What is the time interval between two inspections? _____________________________________________________________________ 11) What do you observe while inspecting the plant and the office? _____________________________________________________________________ 12) What is the cooperation level of your employees? Non Cooperative

Cooperative

Extremely Cooperative

13) What are your future plans and strategies? _____________________________________________________________________ 14) What are the promotional activities you conduct to promote your products? _____________________________________________________________________ 15) Do you organize events or seminars for your customers to make them aware about your products? Yes No 16) Do you conduct staff meeting for smooth working and better coordination? Yes

No

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Final SIP Report 17) Does your staff work over time? If yes, do you pay extra money for that? _____________________________________________________________________ 18) Does any conflict arise between your staff members? If yes, what do you do to resolve the conflict? ____________________________________________________________________ 19) Do you reserve the power to provide monetary benefit or incentive to your staff for good performance? Yes

No

20) Do you provide training to your staff? Yes

No

21) Do you take feedback from employees? Yes

No

22) How do you keep record of your data? Electronically

Manually

Both

23) Do you organize any camps or meetings where Saras parlour and booth owners are involved and their problems can be heard and solved? Yes No 24) What measures do you take to ensure smooth functioning of the organization? _____________________________________________________________________ 25) Do you provide any additional benefit/incentive to booth/parlour owners? Yes No If yes, what are the conditions that need to be fulfilled by the parlour/booth owners? ___________________________________________________________________ 26) Who is responsible for setting prices of Saras products? ____________________________________________________________________ 27) Are you aware of the fact that Reliance is entering the dairy industry? Yes

No

28) Have you planned any strategy to counter competition from Reliance? Yes

No

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REFERENCES The definitions and data used in this report are compiled from the following sources: 1) Annual publication of Saras Dairy, Alwar 2) Business Research Methodology by C.R. Kothari. 3) Business Research Methods published by ICFAI University Press. 4) Dairy map of Rajasthan from the website www.mapsofindia.com 5) Definition of marketing by American Marketing Association 6) Definition of marketing by Peter Drucker 7) MIS department of Saras dairy (AZDUSS Ltd., Alwar). 8) Principles of Marketing by Philip Kotler and Gary Armstrong. 9) Principles of Marketing published by ICFAI University Press.

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GLOSSARY The definitions of the terms used in this report are: 1) HACCP: HACCP stands for Hazard Analysis and Critical Control Points. HACCP is an industry-wide effort approved by the scientific community as well as regulatory and industry practitioners. This effort is designed to focus specifically on food safety, including food safety in retail establishments. HACCP, or the Hazard Analysis Critical Control Point system, is a process control system that identifies where hazards might occur in the food production process and puts into place stringent actions to take to prevent the hazards from occurring. By strictly monitoring and controlling each step of the process, there is less chance for hazards to occur. HACCP is important because it prioritizes and controls potential hazards in food production. By controlling major food risks, such as microbiological, chemical and physical contaminants, the industry can better assure consumers that its products are as safe as good science and technology allows. By reducing food borne hazards, public health protection is strengthened. 2) ISO: ISO is the International Standard Organization. It is essentially a federation of national standards bodies from around 150 different countries. Within ISO there are constantly new standards and upgrades being worked upon. Established in 1947, ISO is a non-government organization, with a mission broadly to promote the development of standardization with the objective of facilitating international trade. ISO standards are prefixed with 'ISO'. ISO contribute to making life simpler, and to increase the reliability and effectiveness of the goods and services we use. 3) PASTEURIZATION: Pasteurization is the process of heating liquids for the purpose of destroying viruses and harmful organisms such as bacteria, protozoa, molds, and yeasts. The process was named after its inventor, French scientist Louis Pasteur. The first pasteurization test was completed by Pasteur and Claude Bernard on April 20, 1862. The food is heated enough to destroy the most heat-resistant pathogenic or disease-causing microorganism known to be associated with that food. In this process a large quantity of milk is held in a heated vat at 63 °C (145 °F) for 30 minutes, followed by quick cooling to about 4 °C (39 °F).

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