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Management Project
INTRODUCTION TO THE STUDY
As a part of Bachelor of Business Administration, the researcher
conducted a management project on any of the private/public organization. As a part of
the project under prescribed syllabus of Mahatma Gandhi University, Kottayam, the
researcher had selected a well established and well reputed company , Kerala Solvent
Extractions Ltd.The researcher selects the topic “A STUDY ON DEALERS
SATISFACTION WITH REFERENCE TO KS MILK IN TRICHUR TOWN”.
Every company wants to know present position of its production.
This is because with its information they can develop marketing strategies to maintain
the current position. If the company’s market position is not good it has to formulate
different marketing strategies to make the brand better positioned with this aim in mind
researcher took the problem to find out the market position of K S milk among its
competitors.
The project is done at KSE dairy unit Konikkara, Marthakkara,
Thrissur district, Kerala. KSE is the number one cattle feed producing company in
India. Its product is KS milk. This project is to find out the market position of KS milk
with respect to its competitors in Thrissur district in terms of quality, brand loyalty and
promotional activities.
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RATIONALE OF THE STUDY
As a part of curriculum the researcher has done the study on the
“A STUDY ON DEALERS SATISFACTION WITH REFERENCE TO KS MILK IN
TRICHUR TOWN”. The need of the study is to fulfill the requirements of the syllabus
provided for the completion of Bachelor of Business Administration course as per
Mahatma Gandhi University. This marketing research tries to highlight the threats and
position of KS milk. This study is intended to the dealer’s satisfaction level of KS milk.
This study also analyzes the customer’s satisfaction level regarding the product. The
researcher has selected this topic as it is relevant to the company and helps to
understand the working condition and to improve market position of the company.
OBJECTIVES OF THE STUDY
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1. To find out the dealers attitude towards branded milk.
2. To identify reason as to why customers and dealers prefer KS milk.
3. Find out the level of awareness among the dealers regarding KS milk and other KS
products.
4. To evaluate present market condition of KS milk.
5. To find out the expectation of dealers from the company side.
6. To know the buying behavior and motive of customers.
7. To find out how dealers rate the promotional activities.
8. To identify the competitors of KS milk in Trissur town
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HYPOTHESIS
A hypothesis, generally means a mere a assumption or supposition to be
proved or disproved. But for a researcher hypothesis is a normal question that he
intends to resolve .Hypothesis is a tentative proposition formulated for empirical
testing. It is a tentative answer to a research question. It is tentative because its validity
has to start somewhere. This point of start is called hypothesis is usually considered as
the principal instrument in research. Its main function is to suggest new experiments
and observations. In fact, many experiments are carried out with the deliberate object of
testing hypotheses. Decision-makers often face situations wherein they are interested in
testing hypotheses on the basis of available information and then take decisions on the
basis of such testing. There are two types of hypothesis they are:
i. NULL HYPOTHESIS
The null hypothesis formally describe some aspects of statistical behavior of a set of
data .The null hypothesis is a hypothesis which the researcher tries to disproves, reject
or nullity in statistical hypothesis testing. The description is assumed to be valid unless
the actual behavior of the data contradicts this assumption.
H0-The dealers of K.S milk are satisfied
ii. ALTERNATIVE HYPOTHESIS
Alternative hypothesis is the hypothesis that the restrictions or set of restrictions to
be tested does not hold .The alternative hypothesis which is opposite of the null
hypothesis is stated expressing a relationship between two variables or indicating
difference between groups.
H1- The dealers of K.S milk are not satisfied
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RESEARCH METHODOLOGY
Research is a diligent and systematic inquiry and investigation into the subject
inorder to discover a revise facts, theories, applications etc. Methodology is a system of
methods followed by particular discipline. Thus research methodology is the way how
we conduct our research.
Research methodology is a way to systematically solve the research problem. It
may be understood as a science of studying how research is done scientifically. In it we
study the various steps that are generally adopted by a researcher in studying his
research problem along with the logic behind them. It is necessary for the researcher to
know not only the research methods/techniques but also the methodology. Researchers
not only need to know how to develop certain indices or tests, how to calculate the
mean, the mode, the median or the standard deviation or chi-square, how to apply
particular research techniques, but they also need to know which of these methods or
techniques, are relevant and which are not, and what would they mean and indicate and
why. Researchers also need to understand the assumptions underlying various
techniques and they need to know the criteria by which they can decide that certain
techniques and procedures will be applicable to certain problems and others will not.
All this means that it is necessary for the researcher to design his methodology for his
problem as the same may differ from problem to problem. For example, an architect,
who designs a building, has to consciously evaluate the basis of his decisions, i.e., he
has to evaluate why and on what basis he selects particular size, number and location of
doors, windows and ventilators, uses particular materials and not others and the like.
Similarly, in research the scientist has to expose the research decisions to evaluation
before they are implemented. He has to specify very clearly and precisely what
decisions he selects and why he selects them so that they can be evaluated by others
also.
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RESEARCH DESIGN
The research design is a conceptual framework within which the researcher is
to be conducted .Rather it is the skeleton of the research work to be undertaken, which
can be modified to suit the nature and procedure of the research. A research design is
defined as “the orderly arrangement of elements and conditions for the collection and
analysis of data in a manner that aims to combine relevance to the research objective
with economy in procedure.” Rather it is a plan of action or blue print for the collection
and analysis of data. A suitable research design shall be selected for the study in hand
based on the nature and purpose of the study.
There are many types of research design they are:
i. Exploratory research design.
ii. Descriptive research design.
iii. Diagnostic research design.
iv. Experimental research design.
The researcher here selects descriptive research design.
DESCRITIVE RESEARCH DESIGN
A descriptive research design is concerned with the detail description of certain
functional variables and characteristics of a problem situation since it is concerned with
the explanation of the problem situation and allied variables its rather called explanatory
research .Descriptive research should define the who , what , where , why and how
aspects of the research. Descriptive research includes surveys and fact-finding enquiries
of different kinds. The major purpose of descriptive research is description of the state
of affairs as it exists at present .The main characteristic of this method is that the
researcher has no control over the variables; he can only report what has happened or
what is happening. The methods of research utilized in descriptive research are survey
methods of all kinds, including comparative and co relational methods.
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POPULATION
In any statistical investigation we are interested in studying the various
characteristics of individuals or item of a particular group. This group of individuals
study is known as population or universe .Therefore universe is the aggregate of all the
units to be studied in any field of enquiry. In statistics, “Population is the aggregate of
objects, animates or in animates under study in any statistical investigation”. It is thus a
collection of individuals or of the values or of the result of operations which can be
numerically specified. Thus, all items in any field of inquiry constitute a ‘Universe’ or
‘Population.’
The total number of dealers of K.S milk in Trissur town is 130.
CENSUS
A complete enumeration of all items in the ‘population’ is known as a census
inquiry. It can be presumed that in such an inquiry, when all items are covered, no
element of chance is left and highest accuracy is obtained. But in practice this may not
be true. Even the slightest element of bias in such an inquiry will get larger and larger as
the number of observation increases. Moreover, there is no way of checking the element
of bias or its extent except through a resurvey or use of sample checks. Data obtained
from each and every unit of population is likely to be more accurate and reliable. The
possibility of bias and prejudice is minimum. It is intended to collect information from
all the 130 dealers in Trissur town.
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DATA COLLECTION METHOD
The task of data collection begins after a research problem has been defined and
research design/ plan chalked out. While deciding about the method of data collection
to be used for the study, the researcher should keep in mind two types of data viz.,
primary and secondary .Thus the researcher have provided with two types of data
collection namely primary and secondary.
i. PRIMARY DATA COLLECTION
Primary research involves the collection of data that does not already exist, which is
research to collect original data. Primary research is often undertaken after the
researcher has gained some insight into the issue by collecting secondary data. Primary
data sources are the sources by which data are collected originally for a certain purpose.
The data collected from primary sources are called primary data.
Methods used for the collection of Primary data can be:
Observation method.
Interview method.
Through schedules.
Questionnaire method.
The researcher selects questionnaire as a tool for collecting data.
ii. SECONDARY DATA COLLECTION
Secondary data is the data collected by someone other than the user. Common
sources of secondary data for social science include censuses, surveys, organizational
records and data collected through qualitative methodologies or qualitative research.
The secondary data collection must need much care for the making of minute and
scrutiny.
Secondary Data is the data or information that is already available. This data is
collected by a person or organization other than the use of the data. Advantages of
secondary data are that it is cheap and inexpensive. It is easily accessible. It is already
available. It saves time and efforts. It is unobtrusive. It avoids data collection problems
and it provides a basis for comparison.
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Secondary Data can be collected from various sources like:
Reference books
Magazines
Websites
Already published reports
Newspapers
Journals and publications
Research papers
The researcher here selects reference books, already published reports and websites for
collecting data.
VARIABLES UNDER STUDY
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Two types of variables under study are dependent and independent variables.
i. DEPENDENT VARIABLE
Dependent variable, those are having an impact in tune with any change in the
other independent variables. A dependent variable is what you measure in the
experiment and what is affected during the experiment. It is called dependent because it
‘depends’ on the independent variable. In a scientific experiment, you cannot have a
dependent variable without an independent variable. Dependent variables can be
defined as the variables under study which are changeable with a variation in the
independent variables.
The dependent variable in this study is: A study on dealers satisfaction with
reference to K.S milk in Trissur town.
ii. INDEPENDENT VARIABLE
Independent variable, those which don’t vary or get influenced by any change in
other variables. Manipulating the variables is the main tool for experimentation.
Independent variables are those variables which depend upon the facts which help them.
It can be changed as required, and its values do not represent a problem requiring
explanation in an analysis. These variables do not vary or are influenced by any change
in other variable.
The independent variables of this study are:
Quantity
Quality
Price
Customer satisfaction
Commission
Delivery from the side of company
Seasonal offers
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Brand preference
Product knowledge
Dealers meeting
Range of products
Nature of product
Packages
Competitors price and commission
Credit sales
DURATION OF STUDY
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The duration of the project study was a period of 45 days.
LIMITATIONS OF THE STUDY
Response received could be incorrect and misleading.
Absence of respondents at their premises was a major constraint.
The scope of survey was limited to Trissur town.
MARKETING MIX
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Marketing mix is the combination of the elements of marketing and what roles
each element plays in promoting your products and services and delivering those
products and services to your customers.
Elements of the Marketing Mix
The elements of the marketing mix are also referred to as the 5 P's of
marketing. For years marketers referred to the 4 P's of marketing. Only recently has a
5th P been added. Whether you subscribe to the theory that there are four P's or five P's
of marketing, this is essentially referred to as your "marketing mix".
The 4 P's of the Marketing Mix
The original 4 P's of marketing (although they have been renamed a bit over the
years) that were the elements of marketing mix is:
Product – The products or services offered to your customer: Their physical attributes
what they do, how they differ from your competitors and what benefits they provide.
Price – How you price your product or service so that your price remains competitive
but allows you to make a good profit.
Place (Also referred to as Distribution) – Where your business sells its products or
services and how it gets those products or services to your customers.
Promotion – The methods used to communicate the features and benefits of your
products or services to your target customers
CHANNELS OF DISTRIBUTION
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A channel of distribution or trade channel is defined as the path or route
along which goods move from producers or manufacturers to ultimate consumers or
industrial users. In other words, it is a distribution network through which producer puts
his products in the market and passes it to the actual users. This channel consists of: -
producers, consumers or users and the various middlemen like wholesalers, selling
agents and retailers (dealers) who intervene between the producers and consumers.
Therefore, the channel serves to bridge the gap between the point of production and the
point of consumption thereby creating time, place and possession utilities.
A channel of distribution consists of three types of flows:-
Downward flow of goods from producers to consumers
Upward flow of cash payments for goods from consumers to producers
Flow of marketing information in both downward and upward direction i.e. Flow of
information on new products, new uses of existing products, etc from producers to
consumers. And flow of information in the form of feedback on the wants,
suggestions, complaints, etc from consumers/users to producers.
An entrepreneur has a number of alternative channels available to him for
distributing his products. These channels vary in the number and types of middlemen
involved. Some channels are short and directly link producers with customers. Whereas
other channels are long and indirectly link the two through one or more middlemen.
These channels of distribution are broadly divided into four types:-
Producer-Customer: - This is the simplest and shortest channel in which no
middlemen is involved and producers directly sell their products to the consumers. It
is fast and economical channel of distribution. Under it, the producer or entrepreneur
performs all the marketing activities himself and has full control over distribution. A
producer may sell directly to consumers through door-to-door salesmen, direct mail
or through his own retail stores. Big firms adopt this channel to cut distribution costs
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and to sell industrial products of high value. Small producers and producers of
perishable commodities also sell directly to local consumers.
Producer-Retailer-Customer: - This channel of distribution involves only one
middleman called 'retailer'. Under it, the producer sells his product to big retailers (or
retailers who buy goods in large quantities) who in turn sell to the ultimate
consumers. This channel relieves the manufacturer from burden of selling the goods
himself and at the same time gives him control over the process of distribution. This
is often suited for distribution of consumer durables and products of high value.
Producer-Wholesaler-Retailer-Customer: - This is the most common and
traditional channel of distribution. Under it, two middlemen i.e. wholesalers and
retailers are involved. Here, the producer sells his product to wholesalers, who in
turn sell it to retailers. And retailers finally sell the product to the ultimate
consumers. This channel is suitable for the producers having limited finance, narrow
product line and who needed expert services and promotional support of
wholesalers. This is mostly used for the products with widely scattered market.
Producer-Agent-Wholesaler-Retailer-Customer: - This is the longest channel of
distribution in which three middlemen are involved. This is used when the producer
wants to be fully relieved of the problem of distribution and thus hands over his
entire output to the selling agents. The agents distribute the product among a few
wholesalers. Each wholesaler distributes the product among a number of retailers
who finally sell it to the ultimate consumers. This channel is suitable for wider
distribution of various industrial products
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DEALER
A dealer facilitates market liquidity by intermediating between transistors
to whom time is important in exchange for charging buyers a higher price than he pays
sellers. A value-based investor may also fulfill this function, but at a larger bid-asked
spread than that imposed by the dealer. Relative to the value-based investor, the dealer
has limited capital, hence limited ability to absorb risk; he will thus limit the position-
long or short-he is willing to take. When the dealer's position reaches a maximum, he
will lay off to the only other transactor motivated by price-the value-based investor.
The dealer's price is tied to the value-based investor's price at these layoff points. As the
value-based investor shifts his prices in response to new information, the dealer's
interior prices shift along with his layoff prices. An investor should realize that, when
he trades with the crowd, he is trading at the value-based investor's spread, which may
be many times the size of the explicit dealer's spread. More generally, the actions of the
crowd--whether it is buying or selling, and in what volume will determine whether the
price of trading quickly is high or low, hence whether the value of his information
justifies trading.
FUNCTIONS OF DEALERS
Creating Value
The value of a product to a consumer, called its utility, is a measure of how much it
improves the person's life. There are four types of utilities: Time, place, form and
possession. Intermediaries add to time utility by making products accessible when
people want them. They create place utility by having goods available where consumers
want to shop. Possession utility involves helping people take title to an item, like a car
dealer arranging financing. Form utility is when an intermediary makes products more
usable or convenient. For example, soda bottlers transform flavoured syrups into soft
drinks.
Transactional Functions
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The transactional functions of intermediaries involve buying, selling and risk taking.
Wholesalers or agents buy products from manufacturers in sufficient quantities to stock
the shelves of multiple stores. They promote the goods to build sales, using personal
salespeople and various marketing communication devices aimed at retailers. While
buying and selling, all intermediaries take a measure of risk. That is because the
inventory they stock in their warehouses can lose competitive appeal or become
obsolete before it is sold.
Logistical Functions
Most mass market products must be manufactured in large quantities to achieve
economies of scale, but few producers can afford to store their inventories or ship small
numbers of items to individual consumers. Instead, they rely on intermediaries to
perform these and other logistical functions. For example, frozen food manufacturers
ship to supermarkets, not direct to consumers' homes. Book publishers rarely sell to
bookstores; they do business primarily with book wholesalers, who assemble large
assortments of new releases and then distribute them in accordance with reader demand.
Facilitating Functions
Facilitating functions include various activities performed by intermediaries to make
exchanges easier for consumers. This often involves collecting and disseminating
information. For example, brokers who buy fresh beef or pork from ranchers inspect
and grade the meat to enable buyers to accurately compare alternatives. Fruit and
vegetable wholesalers sort and certify the freshness of produce. Another facilitating
function is the provision of credit and other financial services. This is especially
important among retailers, who commonly issue credit cards and offer layaway
programs.
BENEFITS OF INTERMEDIARIES
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If selling directly from the manufacturer to the consumer was always the most
efficient methodology for doing business, the need for channels of distribution would be
obviated. Intermediaries, however, provide several benefits to both manufacturers and
consumers: improved efficiency, a better assortment of products, reutilisation of
transactions, and easier searching for goods as well as customers.
The improved efficiency that results from adding intermediaries in the
channels of distribution can easily be grasped with the help of a few examples. Take
five manufacturers and 20 retailers, for instance. If each manufacturer sells directly to
each retailer, there are 100 contact linens line from each manufacturer to each retailer.
The complexity of this distribution arrangement can be reduced by adding wholesalers
as intermediaries between manufacturers and retailers. If a single wholesaler serves as
the intermediaries, the number of contacts is reduced from 100 to 25: five contact lines
between the manufacturers and the wholesaler, and 20 contact lines between the
wholesaler and the retailers. Reducing the number of necessary contacts brings more
efficiency into the distribution system by eliminating duplicate efforts in ordering,
processing, shipping, etc.
In terms of efficiency there is an effect of diminishing returns as more
intermediaries are added to the channels of distribution. If, in the example above, there
were three wholesalers instead of only one, the number of essential contacts increases to
75: 15 contacts between five manufacturers and three wholesalers, plus 60 contacts
between three wholesalers and 20 retailers. Of course this example assumes that each
retailer would order from each wholesaler and that each manufacturer would supply
each wholesaler. In fact geographic and other constraints typically eliminate some lines
of contact, making the channels of distribution more efficient.
Intermediaries provide a second benefit by bridging the gap between the
assortment of goods and services generated by producers and those in demand from
consumers. Manufacturers typically produce large quantities of a few similar products,
while consumers want small quantities of many different products. In order to smooth
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the flow of goods and services, intermediaries perform such functions as sorting,
accumulation, allocation, and creating assortments. In sorting, intermediaries take a
supply of different items and sort them into similar groupings, as exemplified by graded
agricultural products. Accumulation means that intermediaries bring together items
from a number of different sources to create a larger supply for their customers.
Intermediaries allocate products by breaking down a homogeneous supply into smaller
units for resale. Finally, they build up an assortment of products to give their customers
a wider selection.
A third benefit provided by intermediaries is that they help reduce the cost of
distribution by making transactions routine. Exchange relationships can be standardized
in terms of lot size, frequency of delivery and payment, and communications. Seller and
buyer no longer have to bargain over every transaction. As transactions become more
routine, the costs associated with those transactions are reduced.
The use of intermediaries also aids the search processes of both buyers and
sellers. Producers are searching to determine their customers' needs, while customers
are searching for certain products and services. A degree of uncertainty in both search
processes can be reduced by using channels of distribution. For example, consumers are
more likely to find what they are looking for when they shop at wholesale or retail
institutions organized by separate lines of trade, such as grocery, hardware, and clothing
stores. In addition, producers can make some of their commonly used products more
widely available by placing them in many different retail outlets, so that consumers are
more likely to find them at the right time.
DAIRY INDUSTRY
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The dairy industry is recognized as one of the largest and most important of food
industries. The dairy industry exists for one purpose – to provide, at a reasonable cost,
milk and milk products that satisfy the consumer’s needs and fulfils his nutritional
requirements. The industry means different things to the different participant- the
producers, the dairy handlers and consumers.
The word “Dairy” was derived from the Middle English word, “deirie” meaning
day or maid servant worked. Dairy now connotes a wide range of activities starting with
the production of milk in the farm to the point it reaches the consumer in the form of
liquid together by a diverse field of disciplines such as dairy science, animal husbandry,
crop husbandry, and dairy engineering. Management science is applicable in each of
these disciplines and integrates them, to achieve the objective of providing milk to the
consumer by making an optimum use of Earth’s renewable resources for production of
milk.
The importance of dairying stems from the role of milk in human nutrition. Food
serves two major functions in human nutrition, to provide energy and to furnish the
elements essential for growth and replacement of body tissues. All the three main forms
of food-carbo-hydrates, fats and proteins provide the energy, but only proteins can
supply nitrogen and amino-acids essential for growth and replacement of tissues. In
planning for human nutrition, there are two possible stages the first has a limited
objective of holding back hunger while the second is achieved by providing a balanced
diet which includes ascertain quantity of animal protein to include the essential amino-
acids in the diet. The developed countries have achieved the second stage. The
developed countries need to plan their agriculture for providing adequate balanced
nutrition from the available resources within the country. The relevance of the dairy
industry, at this stage of planning for food, is in promoting supply of balanced diet to
the population.
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In terms of biological value human nutrition egg protein is the most
important, followed by the protein from milk. Egg or milk protein can furnish all the
amino-acids essential for normal growth and healthy life processes, provided that they
are consumed inadequate amounts. Fish, meat and poultry products are also high in the
scale of biological value. Vegetable protein from wheat, maize, rice, beans and nuts are
of low biological value, particularly when it represents the only source of protein. The
essential amino-acids are not provided in sufficient quantities. In many of the
developing countries, more so in India, milk may form the only source of animal
protein. “One quart (approximately on litre) of milk furnishes approximately all the fat,
calcium, phosphorus and riboflavin; half the protein; one third of the vitamin A, acetic
acid and thiamin; one fourth the calories and with the expectation of iron, copper,
magnesium and manganese, all the minerals needed daily considerable amounts of
nicotinic and chorine are also provided”. Milk is the secretion of mammary glands,
produced primarily for feeding the young. All mammals produce milk. However, milk
is obtained for commercial consumption purposes from domestic animals, particularly
the cow. The milk of different species essentially contains the same constituents. The
composition may, however vary from species to species in minor proposition. The
variation in milk composition is likely to occur within the species due to a number of
factors like breed, age, stage of lactation, individual variation, seasonal variation,
variation from lactation to lactation, interval between milking, first and last milk, fitness
of the animal and feed provided to the animal. Milk and cream are the main products of
dairying. The other products are derived from these principle products. The industry
faced with some general characteristics peculiar to dairying. The production of milk is
seasonal mainly because of the nature and purpose of milk production. Milk is produced
for the young calf and is, therefore, depended on the calving season. However, the
demand for milk and milk products remain the same throughout the year. Milk is bulky
and highly perishable. The milk handlers, therefore, have to process the milk and store
it under refrigeration or reduce the bulk by drying before storage.
Agriculture and allied industries account for nearly half the gross national
income of India, one fourth of which is from dairy. The national economy of certain
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European countries like Denmark and Sweden are depended almost entirely on animal
husbandry of which dairying is a major industry. In the US, dairy industry alone
contributes to one fifth of the total agricultural income. Moreover, the consumer spends
a fifth of his food expenses on milk and milk and milk products. Apart from the
contribution, dairying needs to the economy and nutritional status of any country, the
industry provides employments to thousands of people. In the US, over a quarter
million people were employed by the dairy industry in 2000. In the tropics, where
dairying is less developed, millions earn their income either partly or wholly from the
dairy industry.
INDIAN DAIRY INDUSTRY
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INTRODUCTION
India is the highest milk producer in the entire globe. India is well known as
the ‘Oyster’ of the global dairy industry, with opportunities galore for the entrepreneurs
globally. It might be dream for any nation in the world to capitalize on the largest and
fastest growing milk and milk products' market. The dairy industry in India has been
witnessing rapid growth with liberalization. As the economy provides good
opportunities for MNCs and foreign investors to release the full potential of this
industry. The main objective of the Indian Dairy Industry is to manage the national
resources in a manner to enhance milk production and upgrade milk processing using
innovative technologies.
The crossbred technology in the Indian Dairy Industry has further
augmented with the viability of the dairy units by increasing the milk production per
animal. Then subsequently milk production has also increased at an exponential rate
while the benefits of an increase in milk production also reached the consumers from a
relatively lower increase in the price of milk. The favorable price environment for milk
producers for the Dairy Industry in India however appeared to have weakened during
the 90's, a decline in the real price of milk being noticed after the year 1992. And then
slowly regained it is glory after 1992 to till now.
In India dairying from very much earlier is regarded as an instrument for
social and economic development. The country’s milk supply comes from millions of
small producers, who are dispersed throughout the rural areas. All these farmers
maintain an average herd of one or two milch animals, comprising cows and/or
buffaloes. Mostly ample labour and a small land base encourage farmers to practice
dairying as an occupation subsidiary to agriculture. As income from crop production is
seasonal instead dairying provides a stable which is a year-round income and also an
important economic incentive for the small farmer.
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HISTORY OF INDIAN DAIRY INDUSTRY
India had tremendous milk production in 40 years and has become the world’s
largest milk-producing nation with a gross output of 84.6 million tons in 2001. The
Indian Dairy Industry has achieved this strength of a producer-owned and
professionally-managed cooperative system, despite the facts that a majority of dairy
farmers are illiterate and run small, marginal operations and for many farmers, selling
milk is their sole source of income. More than 10 million dairy farmers belong to
96,000 local dairy cooperatives, who sell their products to one of 170 milk producers’
cooperative unions who in turn are supported by 15 state cooperative milk marketing
federations.
In India dairy business has been practiced as rural cottage industry over the
years. Semi-commercial dairy started with the establishment of military dairy farms and
co-operative milk unions throughout the country towards the end of the 19th century.
Since Independence this Industry has made rapid progress. A large number of modern
milk and milk product factories have since been established. The organized dairies in
India have been successfully engaged in the routine commercial production of
pasteurized bottled milk for Indian dairy products.
The growth of Indian Dairy Industry during the last three decades has been
impressive, at more than 5% per annum; and in the 90's the country has emerged as the
largest producer of milk. This is not a small achievement when we consider the fact that
dairying in India is largely stringent that farmers in general keep dairy animals in
proportion to their free crop and also are available for family labor with little or no
purchased inputs and a minimum of marketed outputs. The existence of restrictive trade
policy milk in the dairy Industry and the emergence of Amul type cooperatives have
changed the dairy farming practices in the country. Farmers have gained the favourable
price for their milk and for their production which was essentially a self-reliant one is
which is now being transformed into a commercial proposition.
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In India Milk production is dominated by small and marginal land-holding
farmers and also by landless labourers who in aggregate own 70% of the national milch
animal herd. And as the crop production on 78% of the agricultural land still depends on
rain, which is prone to both drought and floods, rendering agricultural income is very
much uncertain for most of the farmers. Dairying, as a subsidiary source of income and
occupation, is real relief to most of the farmers in the society. Usually one or two milch
animals enable the farmers to generate sufficient income to break the vicious
subsistence agricultural-debt cycle.
The Operation Flood which is the successful Indian dairy development
programmed has analyzed that how food aid can be utilized as an investment in building
the type of institutional infrastructure that can bring about national dairy development.
Programmes like this, with similar policy orientations, may prove to be appropriate to
dairy development in in India.
India in the early 1950's was commercially importing around 55000 tonnes of
milk powder annually to meet the urban milk demand. Most of the significant
developments in dairying have taken place in India in this century only.
PRESENT STATUS OF INDIAN DAIRY INDUSTRY
The Indian Dairy Industry engages in the production and processing of milk &
cream. This industry is involved in the manufacture of various dairy products like
cheese, curd, yoghurt etc. The Indian Dairy Industry specializes in the procurement,
production, processing, storage and distribution of dairy products. India as nation stands
first in its share of dairy production in the international scenario. The industry
contributes about Rs 1,15,970 to the national economy.
Indian Dairy Industry is the largest milk producer all over the world, around 100
million MTIndian Dairy Industries value of output amounted to Rs. 1179 billion in
2004-05 which approximately equals combined output of paddy and wheat. With 1/5th
of the world’s bovine population. In India the Milch animals constitutes 45%
indigenous cattle, 55 % buffaloes, and 10% cross bred cows
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Intensive Dairy Development Programmed (IDDP): The Schemes, modified under
this programmes are on the basis of the recommendation of the evaluation studies which
were launched during Eighth Plan period and is being continued through out the
Eleventh Plan with an outlay of Rs. 32.49 core for 2009-10.
Strengthening Infrastructure for Quality and Clean Milk Production (CMP): this
is a centrally sponsored scheme which was launched in October 2003, which had the
main objective of improving the quality of raw milk produced at the every village level
in the India.
Dairy Venture Capital Fund- this is introduced in the Tenth Fiver Year Plan to bring
about structural changes in unorganized sector, which would measure like milk
processing at village level, marketing of pasteurized milk in a cost effective manner,
quality or the up gradation of traditional technology to handle commercial scale using
modern equipments and management skills.
FURURE SCOPE OF INDIAN DAIRY INDUSTRY
The value of the Indian dairy industry is expected to touch Rs 5 lakh crore by
2015, with milk output pegged at 190 million tonnes at the end of the period According
to an Associated Chambers of Commerce and Industry of India (ASSOCHAM) study,
the Indian dairy industry is growing at the rate of 10 per cent per annum. "Milk
production is likely to reach about 190 million tonnes in 2015 from current level of
about 123 million tonnes. India - the world's largest milk producer -- accounts for
around 20 per cent of global milk production, with most of it consumed domestically. In
India, about 60 per cent of milk is consumed in liquid form, while the remaining 40 per
cent is used in the form of butter, clarified butter (desi ghee), cheese, curd, paneer, ice
cream, dairy whiteners and traditional sweets. An upward spiral in prices, the lack of
proper infrastructure like cold storages and absence of a transparent milk pricing system
are affecting retail consumption of milk and leading to escalating milk prices in the
domestic market. Andhra Pradesh, Bihar, Haryana, Gujarat, Madhya Pradesh,
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Maharashtra, Rajasthan and Uttar Pradesh are the leading milk producing states in the
country.
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DAIRY INDUSTRY IN KERALA
Milk is an unavoidable element in the life of Keralites. In olden days, Kerala was
far ahead in production of milk. But due to several reasons the production of milk is
defined. Milk producers in Kerala are in the grip of a major crisis following the flow of
large quantity of milk from outside the State at lower prices. According to a survey, the
state produces 20.61 lakhs tons of milk per annum. The production, according to market
sources, is insufficient to meet the demand of the state’s population. As a result, Kerala
has become a major market for milk produced in neighboring States. Supplies from
TamilNadu meet around 60% of the daily demand milk.
Rapid increase in milk processing and marketing companies has resulted in tough
competition leading to cut in prices. Thus, availability of milk at low prices from other
States has created a crisis for the milk producers in the State farmers said. A dairy
expert told Business Line that the only solution to the crisis was production of “good
and pure milk” by which the Kerala milk producers could compete and recapture the
market Dairy Development Board was created in 1962. The livestock Development and
Milk Marketing Board for milk procurement and marketing was set up, followed by the
Kerala Co-operative Milk Marketing Federation. But all these have failed to save the
dairy sector and the farmers.
One of the major problems being encountered is the non-availability of modern
facilities to process and stock the entire milk produced during the peak season (in
therainy months). As a result, during these months, not only are restriction imposed on
the quantity procured but there is a cut in the prices by the co-operatives. The State has
over 2,972 milk marketing their functioning unfavourable to the development of the
sector. When the societies run by NGOs procure milk at Rs.10 per litre from the farmers
by providing subsidy for cattle feeds, in Kerala they were being discouraged with taxes.
Kerala requires 68.5 lakh tons of cattle fodder, of which they only 40 tons are available
within the State. Non-availability of land and improved variety of fodder grass has
become major impediments. The estimated dairy consumption of milk in Kerala is
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35.53 lakhs liters including the institutional consumption. The average daily production
of milk in Kerala is estimated to be 32.72 lakhs liters per day. Hence there is a shortage
of 2. 81 lakhs of milk per day .
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COMPANY PROFILE
HISTORY OF KSE LTD
KSE LTD is a public limited company is an incorporated with
substantial capital participation by the Kerala state industrial development corporation
limited. Trivandrum and though loans from industrial finance corporation of India, New
Delhi. The company is engaged in the solvent extraction of ground nut cake and rice
bran also. The oil thus obtained is moved for industrial purpose in to the market. In
addition is full – fledged live stock feed division engaged in the production of ready
mixed cattle feed.
The company was registered in the year 1963. In 1973 the solvent
extraction plant was started with processing capacity of 60 metric tones of cake per day.
in1976 the company stated production of ready mixed feed with the production
capacity of 50 metric tone per day and in 1983 the company increased the production of
cattle feed to 120 tm per day which has recently been increased to 180 tm per day by the
construction of a daily automated computerized plant . In 1988 company started a
solvent extraction and cattle feed plat at Swaminathapuram near Palani, with production
capacity of 150 mts of cattle feed per day and processing capacity of 100 – 120 mts of
expeller extracted deoiled cake.
In 1972, the company laser new cattle feed plant at Pothannur near
Coimbatore with a production capacity of 80 mts per day and in 1995 company has
leased a plan in my sore with the capacity of 50 mts per day. In 1996 the company
started a new plant Vedagiry at Kottayam in Kerala with the capacity of 240 mts per
day. Kerala solvent extraction limited come out with a premium public issue on march
1993 which was over subscribed , through the stock markets are showing a low trend ,
now Kerala solvents share is still quoted at Rs140 per share whose face value is Rs 10
this reflect the confidents of investing in the company .
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It was in 1963 that Kerala solvent extraction limited now known as KSE
limited entered the solvent extraction industry setting up the very first solvent extraction
plant in the largest producer of copra in the country , as much as 80 % of it , Kerala the
infrastructure to exploit the potential of its abundant produce . While the oil industry in
other parts of the country were thriving.
The Dr. Lokhanathan committee, set up to feasibility of starting new
industries in Kerala, recommended the establishment of 3 solvent extracting plants. And
one of them, in Thrissur district. The oil mill owners in hand around Irinjalakuda , who
were thinking in similar lines saw the opportunity and look the initiative to establish a
solvent extraction unit. The solvent extraction plant went on the stream in 1972 and in
1976 a new plant was set up to manufacture ready mixed cattle feed, which was a
pioneering step. Since then there, was no looking back. The last 3 decades have seen
KSE emerging as a leader in solvent extraction and ready mixed cattle feed in the
county and though these years of consideration and diversification KSE has gate a niche
for itself.
Today KSE commands the resources, expertise and infrastructure to
manufacture a range of live stock feed in high volumes, coconut oil from coconut cake
and refined edible oil. Since the early KSE hand endeavored to supply its products to
customers through extensive net work of dealer and retailers which from a dedicated
force behind the success of KSE. It is matter of pride that KSE is house hold name
today .The KSE is a public limited company having around 6000 share holders. The
board of directors consisting 10 directors in the executive committee responsible for the
management the articles of association of the employers the board of directors of
directors to appoint one as the chief managing director and one whole time director.
The Chief Managing Director, Executive Director and Whole Time
Director are the smooth running of day to day affairs of the company. Strategic decision
of the company are taken by an executive body consisting of the Managing Director ,
Executive Director ,Whole Time Director , General Manager , Finance Manager ,
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Nutritionist , Marketing Manager , Plant Manager and Purchase Manager . These
executives are professional with vast experience in their areas of specialization.
ESTABLISHMENT
Kerala Solvent extraction limited now known as KSE
limited was established in 1963 , by a hand full of coconut millers in an around
Irinjalakuda . With a vision to over comes the crisis of the coconut oil industry. Initially
started as a solvent extraction plant the company now produces 750 – 800 MTs of
coconut cake a day with a four cattle feed production units and two solvent extraction
plants. The company has diversified in to 9 the area of dairying by establishing two
dairy plants for the production of pasteurized milk and milk products. It has obtained
ISO recognition for its commitment to quality and professionalism.
DAIRY DIVISION
KSE started operation of its dairy division on 22 January
2000.The idea of diversification into dairy industry was the outcome of the desire for
forward integration of the cattle feed business of KSE ltd, the company market a wide
range of dairy products in the market. Its main area of operation is Thrissur and also
some parts of Ernakulam and Malapuram.The products are toned homogenized
milk ,ghee, curd, sambharam and ice cream.KSE has milk processing units in
Thalayuth (Tamilnadu) and Konikkara in Thrissur have processing capacity of 20000
liters and 30000 liters per day. The brand name of milk and milk products is “KS” and
ice cream is “vesta”.
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PRESENT STATUS OF THE COMPANY
The pioneering plant of KSE at Irinjalakuda in many ways. It was first
solvent extraction plant in Kerala. It was first manor factory in the locality, spread over
15acres. It was here set up its first cattle feed plant. The embodied the spirit
of enterprise of group of committed people, who wanted to user in an era of modernity
into a traditional society and change the industrial landscape of the state. Naturally,
today the Irinjalakuda plant enjoys a flagship status and commands an edge on
infrastructural strength. Taking great in technological development, the process of
computerization in plant and office was initiated way back in 1987.Research and
development plays an important role in the activities of KSE, The central R & D unit is
located here. The plant houses a modern laboratory. The quality control cell here leads
and guides other units and formulates stringent standards. The chief Nutritionist and
Assistant manager quality controls are also based here. A proud symbol of growth, the
Irinjalakuda unit is an inspiring force for the entire KSE family.
KSE Limited an ISO 9001-2000 certified company is having an annual sales
turnover Rs. 371 crores ; Irinjalakuda branch is the head office of the company. Only
the cattle feed production is running in Irinjalakuda plant with a production capacity
of 210 tones per day.
In Swaminathapuram unit they have a model dairy farm with highly yielding
animals maintained for conducting feeding trials and other experiments .In Konikkara
unit which is main dairy division of KSE has made their products like “K.S. milk, K.S.
ghee, K.S. curd, and butter milk” has already become popular in Thrissur, Ernakulum,
Malappuram, and Alapuzha districts. In the year 2010 ice cream production also started
in Vedagiri, Kottayam to meet growing demand in Kerala.
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GROWTH CHRONICLE
Kerala solvent extraction limited was registered as a public limited
company on 25th September 1963. The company was later on renamed as KSE ltd. and
listed in stock exchange of Mumbai, Chennai, Cochin. The company started production
in 1972 with a solvent extraction capacity of 40 mts per day.
1972 : Solvent plant commences operation.
1976 : Ready mixed cattle feed.
1980 : Production capacity of cattle feed increased to 60 MTs per day.
1983 : A fully automatic new cattle feed plant started operation capacity 120 MTs / per day.
1984 : Thus solvent extraction plant capacity increased to 80 MTs / day.
1987 : Cattle feed plant capacity increased to 180 MTs / day.
1988 : Cattle feed plant in Tamilnadu went into operation .capacity 100MTs
1989 : A solvent unit with a capacity of 120 tones per day. Commences operation at the Tamil Nadu plant.
1990 : Introduction of KS supreme pellets as by pass protein cattle feed in the market.
1991 : Palakad branch started.
1993 : KS enters export market.1994 : Keys forte, the new feed supplement for
cattle feed introduced.
1995 : Cattle feed production started at my sore in Karnataka state Calicut branch started vegetables oil refining unit commenced
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operation “K.S.SUPREAM” at Irinjalakuda.
1996 : 240 TDP cattle feed plant at verdigris in Kottayam district started operation.
1997 : Company renamed as KSE LTD.
1998 : Fourth feed production unit at Palakad.
1999 : A modern children park & information center has been completed at Irinjalakuda.
2000 : Company started production & marketing of pasteurized milk and milk products.
2001 : Started operating solvent extraction plant and oil refining plant on lease at Kunjikod for processing coconut cake launched jersey in 50 kegs limited HDPE bags.
2002 : Irinjalakuda unit cattle feed plant capacity is increased to 195 MTs / day ice cream launched.
2003 : Vesta heaven ice cream par lour at
Irinjalakuda and Marthakkara started
producing cattle feed in leased plant at
Edayar.
2004 : KSE bags productivity award.
2005 : Cattle feed production capacity there of
to 200 MTs / day.
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2006 : 200 TPD the solvent extraction plan of
Kinfra Park.
2007 : Install 500 TPD cattle feed plant at
Irinjalakuda unit.
2008 : Ice cream production unit commissioned
at Thalayuthu.
2009 : CMD, CYM and others at the auto
bagging station in the 500 TPD feed will
wearing completion at Irinjalakuda.
2010 2010 : Ice cream production unit at Vedagiri.
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OBJECTIVES OF THE COMPANY
According to memorandum of association of the company. The most important
objectives are following.
1. To produce , manufacturing , extract , refine , prepare , import , export sell and
generally to deal in oil from seeds ,oil cakes and other oil bearing material to carry
on the business of refining and hydro generation of oil and manufacturing of by
products there and trades connected there with .
2. To acquire, erect, construct, establish, operate and maintain oil mills, extraction
plant, ghee plant, work shop and other works.
3. To purchase, manufacture, sell or otherwise deal in oil cakes, washing soap, toilet
soap, hair oil tinned products etc …
VISION
We shall endeavor to maintain leadership through quality
products , explore new avenue in product development are marketing , create a stronger
bond between the management , work force , dealers and customers , contribute to
social development and rural enlistment and constantly strive for excellence for in all
spheres of our activities .
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BOARD OF DIRECTORS
Chairman and managing director : M.C Paul.
Executive director : P.K. Varghese.
Director and legal adviser : A.P.George.
Director : K.P. John.
Director : P.D.Anto.
Director : Dr K.C. Vijayaraghavan.
Director : John Francis k
Director : T.R. Ragulal.
Director : Dr. Jose Paul Thaliyath.
Director : Joseph Xavier.
Chief General Manager : Anand Menon.
Company secretary -cum -general manager : R. Sankaranarayanan.
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CAPITAL OF THE COMPANY [Financial Highlight]
Starting capital of the company is Rs 320 lakhs. Paid up capital 217 per
share at Rs. 10. The turnover of the Company improved from Rs 454 crores to Rs 542
crores during the year ended 31st March, 2012, thus registering an increase of 19 %
over that of previous. In the Dairy division, the volume of sale of ice cream remained
more or less at the same levels that of previous year at 865 kl. The profit of Dairy
division for the year 2011-12 is Rs 96.99 lakhs, which was at Rs 145.03 lakhs in the
previous year. The over-all profit after tax thereby improved from Rs 449.81 lakhs in
year 2010-11 to Rs 1,044.93 lakhs in the year under report.
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PRODUCTION UNIT
IRINJALAKUDA UNIT
The pioneering plan of KSE at Irinjalakuda in many ways. It was
first solvent extraction plant in Kerala. It was first manor factory in the locality, spread
over 15 arêtes. It was here set up its first cattle feed plant. The embodied the spirit of
enterprises of group of committed people, who wanted to user in an era of modernity in
to a traditional society and change the industrial landscape of the state. Naturally, today
the Irinjalakuda plant enjoys a flag ship status and commands an on infrastructural
strength. Taking great in technological development, the process of computerized in
plant and office was initiated way back in 1987. Research and development plays an
important role in the activities of KSE. The central R&D unit is located here. The plant
houses a modern laboratory. The quality control cell here leads and guides other units
and formulates standards. The chief nutritionist and assistant manager quality control
are also based here. A proud symbol of growth, the Irinjalakuda unit is an inspiring
force for the entire KSE family.
SWAMINATHAPURAM UNIT
The enthusiastic responses received on the introduction of KS cattle feed
certain pockets of Tamilnadu promoted KSE to start a manufacturing unit in the state it
self. This unit has a daily production capacity of 180 tones cattle feed processing
capacity of 120 tones of coconut oil cake or 80 tones of bran per day. This major step
towards reinforcing the strength of KSE. A solvent extraction plant was started the very
next year. Spread out on 22 acres of land on the banks of river Amaravathi, this Rs.3.5
crores plant works round the clock. Keyes Forte is also manufactured at this unit. A
model Dairy farm with high yielding animals is also maintained in the unit for
conducting feeding trials and other experiments.
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Management Project
VEDAGIRY UNIT
The third cattle feed manufacturing unit of KSE at Vedagiry, is
the most sophisticated and the finest in the country. This unit has the capacity to
produce cattle feed in both “mash” and “pellet” forms. With a weekly production
capacity of 1600 tones. In the year 2010 Ice Cream production was also started in
Vedagiri, Kottayam to meet the growing demand in Kerala.
PALAKAD UNIT
A recent addition to KSE family is the live stock feed plant at
Palakkad with a manufacturing capacity of 120 TPD, this plant caters predominantly to
the needs of the northern district of Kerala.
KORATTY UNIT
Company acquired land from Kinfra Small Industrial Park, Koratty,
Trichur Dist. And installed 200 TPD Solvent Extraction plant and 100 TPD Physical
Refining Plant with a capital outlay of Rs. 14 crores for refining Vegetable oils. Solvent
Extracted Coconut oil is refined in the plant and made edible. Commissioned
fractionation Plant in March 2009
KONIKKARA UNIT
KSE Limited entered in the field of milk procurement, processing and
marketing of liquid milk and milk products in the year 2000. “K.S. PAAL, K.S. GHEE,
K.S. CURD and BUTTER MILK” have already become popular in Trichur and
Ernakulam, Malappuram and Alleppey Districts. Ice cream under the brand name
“VESTA’ was launched during August, 2002 and have conquered the Kerala Market.
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THALAYUTHU UNIT – DAIRY DIVISION.
In the year 2000 procurement and processing of milk also started in
Thalayuthu Unit,near Palani. In 2008 Ice Cream production started in to cater the
growing demands in Tamil Nadu.
KSE LTD
Location details
Location type Address
Factory / plant : Dairy unit
Thalayathu - 624618
Tamil Nadu – India
Phone – 252861
Factory / plant : Palakkad unit
Palakkad – 678020
Kerala – India
Ph: 2536332
Factory / plant : v/679J , Muppathadam PO
Kochi – 683110
Kerala – India
Ph: 2541070
Factory / plant : Nanjaioothukuli
Erode -638104
Tamilnadu – India
Ph: 2500210
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Management Project
Registered office & factory : P.B. No. 20, solvent road, Irinjalakuda
Thrissur -680121
Kerala – India
Ph: 2825476
Factory / plant : Swaminathapuram unit
Dindigul – 64213
Tamil Nadu – India
Ph: 252560
Factory / plant : Vedagiry unit Kurumullur
Kottayam – 686632
Kerala- India
Ph: 2536829
Factory / plant : Palakkad unit, NIDA, Menonpara
Road and kanji ode
Palakkad – 678621
Kerala – India
Ph: 2368176
Factory / plant : Dairy unit, Konikkara
Thrissur – 680320
Kerala – India
Ph: 2351501, 2358806.
Branch office : XXXlll/2837, Paropadi,
Kozhikode -673012
Kerala – India
Ph: 2370056
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Management Project
Factory / plant : Koratty unit, Kinfra Park
Nalukettu road.
Thrissur- 680308
Kerala – India
Ph: 3257651
44Nirmala College of Information Technology, Chalakudy
Board of Directors
Chairman &Managing Director. .
Chief General Manager.
Executive Director.
Officer.
Officer Sales Executive
.
Office Assistant
Office Assistant.
Clerk.
Clerk
Security guard
Assistant Manager
Store Supervisor
Store clerk
Worker
Assistant Manager
Executive Officer
Office Assistant
Clerk
Store Officer
Management Project
ORGANIZATION STRUCTURE
45Nirmala College of Information Technology, Chalakudy
Chief personnel manager
Chief Quality manager
Company secretary – cum- general manager [finance] Assistant
Manager
Chief Purchase manager
Executive Officer Executive
Officer
Chief Marketing manager
Assistant Manager
Chief nutritionist
Chief Production manager
Management Project
PRODUCT OF KSE
CATTLE FEED
K.S ORDINARY (MASH )
K.S .SUPER (MASH )
K.S. SUPREME (PELLETS )
K.S. DELUXE ( PELLET )
DE OILED CAKE – JERSY
K.S REFINED SUN FLOWER OIL
DAIRY PRODUCTS
K.S. MILK
K.S GHEE
K.S. SAMPARAM
K.S BUTTERMILK
VESTA ICE CREAM
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BUSINESS OPERATIONS
The organization main business operations are buying , production ,
and selling in the operation of buying including purchase of Raw material that are
needed for the production process .In the production the purchased raw material
assembled and convert into finished goods . When it become necessary to milk larger
number of cows, the cows would be brought to a shed or barn that was set up with bails
were the cows could be confined while they were milked. One person could milk more
cows this way, as many as 20 for a skilled worker.
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Raw material
Work- in -
progress
Finished goods
Debtors
Cash
Management Project
The raw milk they receives from farmers so as to extent its marketable
life. two main type of process are employed heat treatment to ensure the safety of milk
for human consumption and to lengthen its shelf – life , and dehydrating dairy products
such as butter , hard cheese and milk powders so that they can be stored .
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TRADE UNION PRESENCE
INTUC, CITU, BMC these 3 trade unions are presented in KSE ltd.
trade union will influence working of the company. Trade union as the power to resist
changes and this will effect normal working of the organization. Some times this trade
unions working will be favorable to the company and some time it will make problem
in the company
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MARKET SHARE
15%
65%
10%
10%
Chart Title
KSE ltd
MILMA
SAKTHI
PENTAGON
KS milk has a good market share in the current
market. The firm has some competitors. Even though the concern have good market
share by producing quality K.S with a reasonable price.
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COMPANY LIFE CYCLE:
KS milk exist in the growth stage of the company life cycle. In this stage the
sales are increased rapidly and try to expand the scale of production , and the main
feature of growth stage is rising profit and lower cost of production per unit and
competition increased in the market .
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COMPETITORS
The main competitors of K. S. MILK are given below
Milma
Sakthi
Pentagon
Amul
Vavins
PDDP
Amruth
KPS etc ….
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FUTURE PROSPECTS AND GROTH PLAN
The Animal feed division is expected to perform well in year 2012-
13 also, though there is high volatility in the ingredient prices. There is good demand
for the feed, and the company is unable to meet the demand in certain pockets. KSE is
adding capacities to meet the increased demand. The increase in the price of milk by
the Government of Kerala, will help to boost the cattle rearing, and company expect a
steady demand in year 2012-13. Adjustment in feed price, to match the ingredient
prices, will be possible, without losing the market share, when the demand is steady.
Good quality copra cake is available now as per requirement from Kerala and Tamil
Nadu at reasonable price and the dependency on import has reduced to that extent. The
company is trying to utilise the capacities for ice cream in Thalayuthu and Vedagiri ice
cream units and once they are able to improve the volume, the Dairy division will
generate higher revenue.
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Marketing Manager
Assistant Manager
Sales executive
Office assistant
Management Project
DEPARTMENTS
MARKETING DEPARTMENT
In the department of marketing, are controlled and supervised by
marketing manager in the consultation with general manager. This marketing
department performs a lot of activities viz. pricing selection of suitable distribution
policies & some promotional policies such as price discounts, gifts etc …
STRUCTURE OF MARKETING DEPARTMENT
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AssistantManager
Executive officer
Office assistant
Clerk
Management Project
FINANCE DEPARTMENT
The success of every organization is good and efficient finance
department. KSE limited has a good financial department & they allocate all purchasing
efficiently that lead to improve market share & increase profit.
STUCTURE OF FINANCE DEPARTMENT
55Nirmala College of Information Technology, Chalakudy
Company secretary -cum- general manager
Purchase Manager
Executive officer
Officer
Office assistant
Clerk
Management Project
PURCHASE DEPARTMENT
The purchase department consists of the manager, assistants &
store keeper .They is responsible for all the purchases. Including raw materials for
production, office stationeries & other maintenance related purchase in KSE limited.
The purchase department will have to convince of requirements before the articles &
procured. This policy ensures less revenue loss due to unnecessary & unplanned
purchase activities.
STRUCTURE OF PURCHASE DEPARTMENT
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FUNCTION OF PURCHASE DEPARTMENT
What to purchase? When to purchase? Where to purchase? How much to purchase? At what price to purchase?
PRODUCTION DEPARTMENT
Production department are heard by plant supervisor. The main function of production
department in manufacturing of various types of milk products, which is having better
demand from the customers both from Kerala and national market.
PRODUCTION FUNCTION
Improving volume of production
Controlling idle time of workers
Minimizing work rates
57Nirmala College of Information Technology, Chalakudy
Production manager
Assistant Manager
Stores officer
Store supervisor
Store clerk
Management Project
STRUCTURE OF PRODUCTION DEPARTMENT
58Nirmala College of Information Technology, Chalakudy
Worker
Management Project
1. EXPERIENCE WITH KS MILK DEALERSHIP
TABLE NO: 1
Options No. of respondents percentage
Less than 5 years 5 4
5 years 15 12
5-10 years 50 38
More than 10 years 60 46
Total 130 100
FIGURE NO: 1
4%
12%
38%
46% Less than 5 years5 years5-10 yearsMore than 10 years
INTERPRETATION
From the above table and diagram it is clear that out of 130 dealers 46% of dealers are
having more than 10years of experience ,38% of dealers have upto 5-10years of
experience with KS milk,12% have only 5 years of experience and 4 % have upto less
than 5 years of experience .
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Management Project
2. OUTLETS
TABLE NO: 2
Options No. of respondents percentage
Milk booth - -
Bakery 70 54
Provisional store 30 23
General store 30 23
Total 130 100
FIGURE NO: 2
54%
23%
23%
Chart Title
Milk boothBakeryProvisional storeGeneral store
INTERPRETATION
From the above table and diagram it is clear that among the 130 dealers 54%are
bakeries ,the other 23% are provisional and general store . No milk booth is available as
dealers of KS milk.
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Management Project
3. REASON FOR PURCHASING FROM KS
TABLE NO: 3
Options No. of respondents percentage
More commission 15 12
Customers request 20 15
Good quality 35 27
All the above 60 46
Total 130 100
FIGURE NO: 3
12%
15%
27%
46%
Chart Title
More commissionCustomers requestGood qualityAll the above
INTERPRETATION
The above table and diagram shows the reason for selling KS milk .Majority of dealers
said that they sell it due to 3 reasons they are more commission, good quality and
customers request. The next 27% of dealers told that they sell KS milk due to the good
quality of the product.
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Management Project
4. OPINION ABOUT THE COMMISSION FROM THE COMPANY
TABLE NO: 4
Options No. of respondents percentage
Highly satisfied 15 12
Satisfied 115 88
Dissatisfied - -
Highly dissatisfied - -
Total 130 100
FIGURE NO: 4
12%
88%
Chart Title
Highly satisfiedSatisfiedDissatisfiedHighly dissatisfied
INTERPRETATION
From the above table and diagram it is clear that majority of dealers that is 88% are just
satisfied with the commission provided by the company and only 12% of dealers are
highly satisfied with the commission provided by the company .The commission
provided by the company is 70ps for 1 packet of milk.
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Management Project
5. CUSTOMERS SATISFACTION
TABLE NO: 5
Options No. of respondents percentage
Yes 130 100
No - -
Total 130 100
FIGURE NO: 5
100%
Chart Title
YesNo
INTERPRETATION
From the above table and diagram it is clear that the customers of KS milk are highly
satisfied with the product. All the 130 dealers in Trissur town said that customers buy
this product due to its quality and there is a high sales movement for KS milk compared
to other brands of milk.
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Management Project
6. OTHER BRANDS THAT DEALERS DEAL
TABLE NO:6
Options No. of respondents percentage
Milma 54 41
PDDP 10 8
Both 25 19
others 41 32
Total 130 100
FIGURE NO: 6
42%
8%19%
32%
MilmaPDDPBoth others
INTERPRETATION
The above table and diagram it is clear that majority of dealers deal with Milma because
beside KS milk Milma is the another brand of milk that high sales movement in the
market. PDDP does not have that much sales movement so only 8% of dealers deal with
PDDP.
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Management Project
7. OPINION ABOUT THE PRICE OF KS MILK
TABLE NO: 7
Options No. of respondents percentage
Very good 46 35
Good 53 41
Satisfactory 31 24
Poor - -
Total 130 100
FIGURE NO: 7
35%
41%
24%
Very goodGoodSatisfactoryPoor
INTERPRETATION
The above table and diagram shows the idea of dealers about the price of KS milk.
Among the 130 dealers 41%of dealers reported that the price of the product is good they
said that because of the quality of the product .35% of dealers said that the price of the
product is low so that there is no problem to deal with the product.
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Management Project
8. SALE OF MILK PER DAY
TABLE NO: 8
Options No. of respondents percentage
20 packets - -
20-40packets 5 4
40-60packets 24 18
More than 60 packets 101 78
Total 130 100
FIGURE NO: 8
4%
18%
78%
20 packets20-40packets40-60packetsMore than 60 packets
INTERPRETATION
The above table and diagram depicts the sale of the product per day. Among the 130
dealers 78% of dealers sell more than 60 packets per day that may be upto 200 or 500
packets .
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Management Project
9. REASON TO BE A DEALER OF KS MILK
TABLE NO:9
Options No. of respondents percentage
Promotional scheme - -
Quality 49 38
Company’s policy 37 28
margin 44 34
Total 130 100
FIGURE NO: 9
38%
28%
34% Promotional schemeQualityCompany’s policymargin
INTERPRETATION
The above table and diagram is talking about the main factors enabling the dealers to be
the KS milk dealers ,most of the dealers prefer on quality to be first factor. About38%
of the dealers are dealing KS milk products for its quality and 28% are for company
policies. The rest 34 % of the dealers voted for margin. Though the dealers prefer
quality and margin as a main factor.
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Management Project
10. OPINION ABOUT CREDIT PERIOD
TABLE NO: 10
Options No. of respondents percentage
Very good 9 7
Good - -
Satisfactory - -
poor 121 93
Total 130 100
FIGURE NO: 10
7%
93%
Very goodGoodSatisfactorypoor
INTERPRETATION
The above table and diagram shows degree of dealers satisfaction on the credit period
allowed by the company to them .Most of the dealers rated it as poor because the
company only provide credit to the dealers who make bulk purchases.
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Management Project
11. HOME DELIVERY SERVICE
TABLE NO: 11
Options No. of respondents percentage
Yes 61 47
No 69 53
Total 130 100
FIGURE NO: 11
47%
53%YesNo
INTERPRETATION
The above table and diagram shows the home delivery services provided by the dealers.
About 53% of dealers does not provide home delivery services. The rest 47% of dealers
provide home delivery .Bakeries are the main outlets which provide home delivery
services.
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Management Project
12. CUSTOMERS PREFERENCE OTHER THAN KS MILK
TABLE NO: 12
Options No. of respondents percentage
Milma 54 42
PDDP 12 9
Sakhti 14 11
Others 50 38
Total 130 100
FIGURE NO: 12
42%
9%11%
38%MilmaPDDPSakhtiOthers
INTERPRETATION
The above table and diagram shows the preferences of customers other than KS
milk.42% of dealers responded that majority of customers prefer Milma .38% dealers
said that the customers prefer other brands rather than Milma, PDDP and Sakhti.
70Nirmala College of Information Technology, Chalakudy
Management Project
13. VARIETIES OF KS MILK PRODUCTS SOLD BY DEALERS
TABLE NO: 13
Options No. of respondents percentage
KS butter milk 11 8
KS curd 54 42
KS ghee 20 15
All the above 45 35
Total 130 100
FIGURE NO: 13
8%
42%
15%
35%KS butter milkKS curdKS gheeAll the above
INTERPRETATION
The above table and diagram shows that majority of dealers sell KS curd because of
customers request and it has a high sale volume than the other products.35% of dealers
sell all the KS milk products .Only a small portion sell butter milk and ghee.
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Management Project
14. SALES MOVEMENT OF KS MILK
TABLE NO: 14
Options No. of respondents percentage
Excellent 37 29
Very good 45 35
Good 24 18
Average 24 18
Total 130 100
FIGURE NO: 14
28%
35%
18%
18%
ExcellentVery goodGoodAverage
INTERPRETATION
The above table and diagram depicts the sales movement of KS milk according to the
dealers .Majority of dealers said that the sales movement of the product is very good.
Because of the quality and goodwill of the company customers prefer KS milk more so
the sales is fast.
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Management Project
15. ATTRIBUTE THAT INFLUENCE THE CUSTOMERS
TABLE NO: 15
Options No. of respondents percentage
Price 22 17
Quality 42 32
Availability 26 20
Brand image 40 31
Total 130 100
FIGURE NO: 15
17%
32%
20%
31%
PriceQualityAvailabilityBrand image
INTERPRETATION
The above table and diagram shows the attributes that influence the customers to buy
KS milk. Majority of the dealers said that the customers buy the product due to the
quality of the product.31% of dealers reported that the customers prefer the product due
to the brand image .The rest 20% and 17% of dealers said that the customers prefer it
because of the availability and price.
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Management Project
16. PROBLEM FACED BY DEALER
TABLE NO: 16
Options No. of respondents percentage
Bad packaging - -
No prompt delivery - -
Insufficient delivery - -
No problem 130 100
Total 130 100
FIGURE NO: 16
100%
Bad packagingNo prompt deliveryInsufficient deliveryNo problem
INTERPRETATION
The above table and diagram shows the problems faced by the dealers .The 130 dealers
in Trissur town said that they don’t face any problem with the dealership of the
company.
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Management Project
17. SERVICES EXPECTED BY THE DEALER
TABLE NO: 17
Options No. of respondents percentage
Sales follow up - -
After sales service 30 23
Credict facility 35 27
Seasonal offers 65 50
Total 130 100
FIGURE NO: 17
23%
27%
50%
Chart Title
Sales follow upAfter sales servicesCredict facilitySeasonal offers
INTERPRETATION
The above table and diagram shows the services expected by the dealers. About 50% of
dealers expect more seasonal offers during the monsoon season when the availability of
milk is low. The other 23%and 27% of dealers expect services and credit facilities.
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Management Project
18. TIMELY SUPPLY
TABLE NO: 18
Options No. of respondents percentage
Yes 130 100
No - -
Total 130 100
FIGURE NO: 18
100%
YesNo
INTERPRETATION
The above table and diagram reveals the timely supply of the product to the dealers.
Here all the dealers are satisfied with the timely supply of the product. All the dealers
receive the product at the expected time and quantity.
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Management Project
19. OPINION ABOUT THE PROMOTIONAL ACTIVITIES
TABLE NO: 19
Options No. of respondents percentage
Highly satisfied 11 8
Satisfied 119 92
Dissatisfied - -
Highly dissatisfied - -
Total 130 100
FIGURE NO: 19
8%
92%
Highly satisfiedSatisfiedDissatisfiedHighly dissatisfied
INTERPRETATION
The above table and diagram shows that 92% of dealers are just satisfied with the
promotional activities. According to their opinion the promotional activities are still to
be improved.
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Management Project
20. TIME OF SALE
TABLE NO: 20
Options No. of respondents percentage
Morning 45 35
Evening 36 27
Both times 30 23
No specific time 19 15
Total 130 100
FIGURE NO: 20
35%
28%
23%
15%
MorningEveningBoth timesNo specific time
INTERPRETATION
The above table and diagram shows the time of sale made by the dealers.34% of dealers
said that the sale is made in the morning hours because everyone need milk at the
specific of time.27% of dealers reported that they got the sale at evening time as Trissur
is a busy town area every one buy milk at that time for their convenience.
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Management Project
21. STORAGE FACILITY
TABLE NO: 21
Options No. of respondents percentage
Yes 130 100
No - -
Total 130 100
FIGURE NO: 21
100%
YesNo
INTERPRETATION
The above table and diagram reveals the storage facility of the dealers .All the dealers
have their own storage facility as milk is a perishable food item. Most of the dealers
have small refrigerators for storage.
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Management Project
22. OPINION ABOUT THE SERVICES PROVIDED BY THE
COMPANY
TABLE NO: 22
Options No. of respondents percentage
Highly satisfied 30 23
Satisfied 100 77
Dissatisfied - -
Highly dissatisfied - -
Total 130 100
FIGURE NO: 22
23%
77%
Highly satisfiedSatisfiedDissatisfiedHighly dissatisfied
INTERPRETATION
The above table and diagram reveals the satisfactory level of the dealers about the
services provided by the company. Majority of the dealers are satisfied with the services
provided by the company .Only 23% of dealers are highly satisfied with the services.
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Management Project
23. OPINION ABOUT PACKAGING OF THE PRODUCT
TABLE NO: 23
Options No. of respondents percentage
Highly satisfied 130 100
Satisfied - -
Dissatisfied - -
Highly dissatisfied - -
Total 130 100
FIGURE NO: 23
100%
Highly satisfiedSatisfiedDissatisfiedHighly dissatisfied
INTERPRETATION
The above table and diagram reveals the packaging of the product .All the 130 dealers
are highly satisfied with the packaging of the product because the material used for the
packing is of high quality .The packets does not show any type of damages.
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Management Project
24. DEALERS ATITUDE TOWARDS SALES PROMOTIONAL
ACTIVITIES
TABLE NO: 24
Options No. of respondents percentage
Free samples - -
Coupons - -
P.O.P displays 23 18
None of the above 107 82
Total 130 100
FIGURE NO: 24
18%
82%
Free samplesCouponsP.O.P displaysNone of the above
INTERPRETATION
The above table and diagram reveals the sales promotional activities of the company.
Only a small portion of dealers said that the company uses Point of Purchase displays
for sales promotion. Majority of dealers said that there is no such sales promotion is
conducted by the company.
25. DEALERS MEETING
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Management Project
TABLE NO: 25
Options No. of respondents percentage
Yes - -
No 130 100
Total 130 100
FIGURE NO: 25
100%
YesNo
INTERPRETATION
The above table and diagram reveal about the dealers meeting conducted by the
company. All the dealers reported that the company does not conduct dealers meeting.
FINDINGS
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Management Project
1. The dealers have considerable experience and their answers are valued much and
their statements were very much helpful for the analysis.
2. The quality of the K.S .milk is found to be satisfied by most of the dealers selling
this brand.
3. The main outlets of company are bakeries.
4. Most of the dealers are just satisfied with the commission provided by the
company.
5. Majority of the dealers feel that supply facility as excellent.
6. The sale of KS milk per day is excellent. The dealers sell more than 150 packets
of milk per day.
7. Most of the dealers feel that the service provided by the firm is average.
8. Most of the dealers feel that the price of milk is good.
9. KS milk is offering credit facility but most of the dealers are not satisfied.
10. Quality and margin are the main factors which enable the dealers to be dealer of
KS milk.
11. All the dealers have their own storage facility.
12. Among the different KS milk products KS curd have high sales.
13. Dealers does not face any problem with the company.
14. Dealers meetings are not conducted by the company so the dealers find it difficult
to express their views
15. Packaging of the product is excellent.
16. Customers prefer this product due to the high quality and brand image.
17. Sales promotional activities provided by the company is not enough.
18. Dealers expect more seasonal offers and services from the side of the company.
19. Milma is the main competitor of KS milk.
20. The supply of the product is timely.
21. 77% of dealers are just satisfied with the services provided by the company.
Services provided by the company are yet to be improved.
SUGGESTIONS
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Management Project
1. Try to increase the amount of sales promotion activities such as advertisements.
2. Try to provide better service and schemes. The company can provide bonus to the
dealers at the time of festivals.
3. Step should be taken to make KS milk available at all places.
4. Try introducing new product into the market. They can introduce flavored milk in
the market which may attract children .They can introduce cheese and butter into
the market.
5. Dealers meeting should be conducted yearly.
6. They should try to introduce other types of packing. They can introduce bottle
milks so that it may be more convenient in handling.
7. The company should provide credit facilities to the dealers.
CONCLUSION
85Nirmala College of Information Technology, Chalakudy
Management Project
The study has helped the researcher a great deal in getting through
knowledge of the marketing and system of distribution, competition and general
trends .the study has been useful to acquire a practical experience a part from the
theoretical knowledge.
The study certainly proved that KS Milk can improve their market share.
Though KS Milk enjoys the brand image, it certainly has to work up on the service and
other aspects so as to remain in that position. Even though KS Milk has a certain
negative aspects. It still can emerge as the top brand with certain adjustment in the
existing policies and strategies.
BIBLIOGRAPHY
86Nirmala College of Information Technology, Chalakudy
Management Project
BOOKS:
Author : C.R KOTHARI
Book : Research Methodology, methods and
Techniques
Publisher : New Age International (p) ltd Publisher
Second Revised Edition: 2004
JOURNALS : Annul report
WEBSITES
Department of the company;
Date : 17/07/2012
Time : 10.15 am
http://www.google.com
Date : 1/8/2012
Time : 10.20 am
http://www.kselimited.com
Date : 1/8/20/12
Time : 11.00 am
QUESTIONNAIRE
87Nirmala College of Information Technology, Chalakudy
Management Project
1. How long have you been dealing with KS products?
Less than 5year 5years
5-10years More than 10 years
2. What business do you do?
Milk booth Bakery
Provisional store General store
3. What is the reason for purchasing from KS?
More commission Customers request
Good quality All the above
4. Are you satisfied with the commission from the side of the company?
Highly satisfied Satisfied
Dissatisfied Highly Dissatisfied
5. Do you think that the customers are satisfied with the KS milk products?
Yes No
6. Which brand of milk do you sell other than KS?
Milma PDDP
Both Others
7. What do you feel about the price of KS milk products?
Very good Good
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Management Project
Satisfactory Poor
8. How much quantity of milk do you sell per day?
20 packets 20-40 packets
40-60 packets More than 60 packets
9. Which factor enables you to be the dealer of KS milk products?
Promotional scheme Quality
Company’s policy Margin
10. What do you feel about the credit period given by the company?
Very good Good
Satisfactory Poor
11. Do you provide home delivery service?
Yes No
12. Which brand of milk do customers prefer more than KS?
Milma PDDP
Sakthi Others
13. What are the different varieties of KS milk that you sell?
KS butter milk KS curd
KS ghee All of them
14. How do you rate the sales movement of KS milk?
Excellent Very good
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Management Project
Good Average
15. What is the most important attribute that influence the customers?
Price Quality
Availability Brand image
16. What type of problem do you face in the delivery and purchase of KS milk?
Bad packing No prompt delivery
Insufficient delivery No problem
17. What are the services that you expect from the company?
Sales follow up After Sales Services
Credit facility Seasonal offers
18. Whether the expected quantity of KS products is supplied to you in time?
Yes No
19. What do you feel about the promotional activities provided by the company?
Highly satisfied Satisfied
Dissatisfied Highly Dissatisfied
20. During which period of time do customers prefer the product?
Morning Evening
Both times No specific time
21. Do you have own storage facilities?
Yes No
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Management Project
22. Are you satisfied with the services provided by the company to the dealers?
Highly satisfied Satisfied
Dissatisfied Highly Dissatisfied
23. Are you satisfied with the packaging of KS milk?
Highly satisfied Satisfied
Dissatisfied Highly Dissatisfied
24. Do you know which sales promotional activities does the company undertake for
KS milk?
Free samples Coupons
P.O.P displays None of the above
25. Is there dealers meeting conducted by the company?
Yes No
THANK YOU
91Nirmala College of Information Technology, Chalakudy