A

COMPREHENSIVE PROJECT REPORT ON

Sri Vijaya Visakha Milk Producers Company Limited

Submitted in partial fulfilment of requirements for the award of the MBA

in Operations Management
Submitted By: PRASANNA KUMAR POLUBOTHU

77121682974

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 ABSTRACT

Vijaya Visakha Diary is a well-known brand for dairy products. It is committed to

enhance the Milk Procurement through Technical inputs by providing Quality
services to our Member Producers by ensuring economic viability to improve
social, economic conditions of our Members. Visakha Dairy is also committed to
supply quality milk and milk products to consumers. Our Dairy shall become top
dairy in the country with its inspired team of employees. We, the inspired
Team of Employees are dedicated to Co-operation, Honesty, Discipline & Time,
Quality & Purity, Hard Working, Transparency, Trust & Belief on Organization,
Mutual Respect, Skill Development & Education. The main objective of this topic
is to identify the competitors in dairy market in Telugu states, Odisha and
Chattisgarh to identify the strategies used by competitors to enhance their
products, to identify the awareness about Dairy products to know about the
preference of dairy food items. So, in this project taken survey from
shopkeepers and customers about the buying of Dairy products. The Andhra,
Telangana, Odisha and Chattisgarh competitors are Heritage, Tirumala dairy,
Vijaya dairy, cream line dairy and some other dairy parlours are famous and
preferred brands. Every week salesman of every company goes to shopkeepers
to take up the order and shopkeepers stock dairy products of every 15 days.

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 PREFACE
The primary objective of the report is to deep dive into Dairy parlour as a
category and understand its market, the way its business is run and cultivate
ideas to drive the business of Visakha Dairy in Andhra Pradesh and Telangana.
The entire report has been prepared based on the understanding during the
project making period of two months. I have gone through various happenings
of the dairy parlour market and various current affairs analysis have been done
by me to see the effect of that on dairy parlour market. When I choose to make
this project, I didn’t have any knowledge about dairy parlour market and what I
had was a bookish knowledge without corporate experience. In Visakha Dairy
LTD I got to learn about the dairy parlour market and the working aspect of the
dairy parlour market. I got the opportunity to give an exposure to my knowledge
and to learn something new from the experienced employee in the form of one
to one mentorship.

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Table of Contents
Chapter-1:
 Brief about Topic
 Organization Business Model
 Research Problems
 Significance of the Study
 Research Methodology
CHAPTER 2:
 Literature Review
 Need of the Study
 Overview of the Company
 Financial Highlights of the Organization
 Milk Supply Chain
 Product Development
 Marketing strategies
CHAPTER-3:
 Competitors
 Heritage
 Amul
 Vijaya Dairy
 Dodla Dairy
CHAPTER-4:
 Analysis and interpretation of study and Findings
CHAPTER-5:
 Finding and Recommendations
 Limitations
 Recommendations
CHAPTER 6:

 Questionnaire Prepared

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Brief about Topic
Today, India is 'The oyster' of the global dairy industry. It offers opportunities
explore to entrepreneurs worldwide, who wish to capitalize on one of the
world's largest and fastest growing markets for milk and milk products. The
Indian dairy industry is rapidly growing, trying to keep pace with the galloping
progress bround the world. India’s dairy sector is expected to triple its
production in the next 10 years in view of expanding potential for export to
Europe and the West. More over with WTO regulations expected to come into
force in coming years but the developed countries which are among big
exporters today would have to withdraw the support and subsidy to their
domestic milk products sector. also India today is the lowest cost producer of
per liters of milk in the world, at 27 cents, compared with the U.S' 63 cents, and
Japan’s $2.8.
India has come a long way from being in deficit days to being well embarked to
emerge as the world’s largest producer and consumer of milk. Globally, the EU,
India and the United States are the largest milk and dairy products producers
and consumers accounted for 20.3%, 18.4% and 11.9% shares, respectively, in
global dairy production in 2014.

Share of global production in 2014 ‐ EU, India, US majors

EU 20%
India 18%
USA 12%
CHINA 6%
Pakistan 5%
Brazil 4%
Russian Federation 4%
New Zealand 3%
Turkey 2%
Argentina 2%
Others 24%

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 Percentage

24 18

2
2 20
3
4
4
5
6 12

India EU USA China Pakistan Brazil Russian New zealand Turkey Argentina Others

Indian dairy sector contributes the large share in agricultural gross domestic
products. Presently there pre-around 70,000 village dairy cooperatives across
the country. The co-operative societies are federated into 170 district milk
producers’ unions, which is turn has 22-state cooperative dairy federation. Milk
production gives employment to more than 72mn dairy farmers. In terms of
total production, India is the leading producer of milk in the world followed by
USB. The milk production in 1999-00 is estimated at 78mn MT as compared t0
74.5mn MT in the previous year. This production is expected to increase to 81mn
MT by 2000- 01. of this total produce of 78mn cows' milk constitute 36mn MT
while rest is from other cattle.
The organised dairy industry is likely to witness 12 per cent revenue growth this
financial year to reach Rs 1.6 lakh crore, mainly due to recovery in demand for
value-added products (VAPs), steady liquid milk sales and a hike in the retail
price, a report said on Friday.
Revenue of India's organised dairy industry will rebound a solid 12 per cent year-
on-year this fiscal to Rs 1.6 lakh crore, compared with a decadal low growth of
one per cent last fiscal, riding on strong demand recovery in most VAP, steady
liquid milk sales and retail price hikes during the fiscal, according to a report by
Crisil Ratings.

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Organization Business Model
Every organization functional goal is aligned with vision, mission and values.
Operations are organised in such a way that they are close to the markets and
customers they serve. The product marketing consists of two dedicated teams
focusing on liquid milk and value-added dairy products. All operational decisions
are made locally at the locations because, in their experience such kind of calls
are most successful when made by the people who has the best understanding
of the markets and those who implement them. The board of directors and
senior management aims to provide a framework in which team leaders have
the freedom and decision-making authority to pursue opportunities with
entrepreneurial flair. All functional goals are aligned with vision, mission and
values.
When reaching out to supermarkets, retail stores, and shopping malls for
establishing a dairy parlor, it's important to communicate your proposal
effectively and demonstrate the potential benefits of having a dairy parlour in
their space. Here's a suggested approach:
1. Research and Targeting: Identify supermarkets, retail stores, and shopping
malls that align with your target market and location preferences. Research
their existing offerings, customer demographics, and any available space that
could accommodate your dairy parlour.
2. Proposal Letter: Write a professional proposal letter introducing your dairy
parlour concept. Highlight the value you'll bring to their establishment, such as
increased foot traffic, enhanced customer experience, and an expanded
product range. Clearly explain how your dairy products align with their
customer preferences.
3. Benefits and Value Proposition: Clearly outline the benefits of having a
dairy parlour within their premises. Emphasize how your dairy products will
complement their existing offerings, add variety, and attract new customers.
Mention any unique features or specialty products that could set your dairy
parlour apart.
4. Visual Presentation: Include visual elements such as sketches, mock-ups, or
even a virtual tour of how your dairy parlour will look within their space. Visual
aids can help the management visualize the concept and its potential impact.

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5. Customization and Collaboration: Highlight your willingness to tailor your
dairy parlour to fit within the aesthetics and theme of the supermarket, retail
store, or shopping mall. Collaboration could involve exclusive product lines or
promotions that align with their brand.
6. Market Analysis: Provide a concise market analysis that demonstrates the
demand for dairy products, current trends, and potential growth in this
segment. This data can help reassure them about the viability of your dairy
parlour.
7. Testimonials and References: If you have any prior experience operating a
dairy parlour or have received positive feedback from customers, include
testimonials or references. This can build credibility and trust.
8. Operational Details: Briefly outline your operational plan, including staffing,
sourcing of dairy products, and quality control measures. Address any concerns
they might have about the practicalities of running the dairy parlour.
9. Regulatory Compliance: Assure the management that you will adhere to all
food safety and health regulations. Provide information about how you plan to
maintain high standards of hygiene and safety.
10. Meeting Request: Close your proposal with a request for a meeting to
discuss the opportunity further. This allows you to present your proposal in
person, answer any questions, and address any concerns they might have.
11. Follow-Up: If you don't receive an immediate response, follow up politely
after a reasonable period of time. Persistence and professionalism can go a
long way in securing a partnership.
Remember to tailor your proposal to the specific supermarket, retail store, or
shopping mall you're targeting. Each establishment may have unique priorities
and considerations, so customizing your approach can greatly improve your
chances of success.

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Research Problems
Research problems related to dairy parlours (also known as dairy farms or dairy
facilities) can cover a wide range of topics. Here are some potential research
problems in this domain:
Optimizing Milk Production Efficiency: How can dairy parlours optimize their
processes, including feeding, milking routines, and cow management, to
maximize milk production efficiency without compromising cow welfare. How
can dairy parlours be optimized for efficient milk production and processing
through automation, reducing manual labour and increasing productivity.
Cow Health and Welfare Monitoring: How can advanced technologies such as
sensors, data analytics, and machine learning be utilized to monitor the health
and welfare of cows in real-time, identifying early signs of diseases or stress.
Sustainable Waste Management: What are the most effective methods for
managing and utilizing waste products from dairy parlours, such as manure and
wastewater, to minimize environmental impact and potentially turn waste into
valuable resources.
Precision Nutrition for Cows: How can precision nutrition techniques be
employed to create tailored diets for cows based on factors such as age, breed,
lactation stage, and individual health needs, with the goal of improving milk yield
and quality.
Reducing Antibiotic Usage: What strategies can be implemented to reduce the
reliance on antibiotics in dairy parlours while maintaining cow health and milk
production, considering alternatives like probiotics, prebiotics, and improved
management practices.
Automated Milking Systems: How can the design and implementation of
automated milking systems be optimized for efficiency, cow comfort, and milk
quality, and what are the economic and labour implications of adopting such
systems.
Cow-Centric Facility Design: What are the most cow-friendly designs for dairy
parlours that consider cow behaviour, comfort, and natural inclinations, leading
to better overall well-being and potentially improved milk production. Identify
the innovative techniques that can be applied to develop dairy products with
enhanced nutritional profiles, taste and texture.

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Milk Quality Assurance: How can dairy parlours implement robust quality
control measures throughout the milk production process to ensure the safety
and quality of milk and dairy products for consumers.
Economic Viability and Profitability: What are the key economic factors that
influence the profitability of dairy parlours, and how can farmers navigate
challenges related to fluctuating milk prices, input costs, and market demands.
Find the changing consumer preferences for dairy products, and how can dairy
parlours adapt to meet these demands.
Technology Adoption and Farmer Training: How can dairy farmers be
effectively trained to adopt and adapt to new technologies, management
practices, and industry trends to ensure their operations remain competitive
and sustainable.
Climate Change Resilience: How can dairy parlours implement strategies to
mitigate and adapt to the impacts of climate change, such as extreme weather
events, changing feed availability, and water scarcity, while maintaining
productivity.
Data Security and Privacy: With the increasing use of digital technologies in
dairy parlours, what are the potential risks and challenges related to data
security, privacy, and cyber threats, and how can farmers safeguard their
operations.
Quality control and assurance: There are some methods implemented in dairy
parlours to ensure consistent milk quality, including testing for contaminants,
bacteria and proper storage conditions. Follow the strategies adopted in dairy
parlours to minimize their environmental foot print such as waste reduction,
energy efficiency and responsible water usage.
Each of these research problems presents unique challenges and opportunities
for improving the efficiency, sustainability, and overall performance of dairy
parlours. Researchers in this field can contribute to advancing the dairy industry
by addressing these issues through scientific studies, technological innovations,
and practical solutions. This project studies about what exactly dairy parlours
category is and its working in the market and different region competitors have
their own strategy for sales and distribution, this project studies about major
players of dairy parlours and their strategies.

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Market conditions may have changed since then, so it's recommended to
gather up-to-date information to get an accurate analysis. Here are the key
steps to consider:
1. Define Your Objectives: Determine what you want to achieve with your
dairy parlour market analysis. Are you looking to launch a new dairy parlour,
expand an existing one, or make improvements to your current operations?
2. Identify Your Target Market: Define your target audience – are you catering
to families, health-conscious consumers, or a specific demographic?
Understanding your target market's preferences, needs, and habits will help
you tailor your offerings and marketing strategies accordingly.
3. Market Size and Potential: Research the overall dairy market and its growth
trends. Look at factors such as the demand for dairy products, consumer
preferences, and any emerging trends like organic or plant-based alternatives.
This will give you an idea of the market's size and potential.
4. Competition Analysis: Identify your direct and indirect competitors in the
dairy parlour space. Study their offerings, pricing strategies, locations, and
customer feedback. This will help you understand your competitive advantage
and areas where you can differentiate yourself.
5. Location Analysis: The location of your dairy parlour can significantly impact
its success. Analyze the foot traffic, nearby competitors, accessibility, and
demographics of the area you're considering. A high-traffic area with a lack of
direct competitors could be an ideal location.
6. Pricing Strategy: Determine how you'll price your dairy products. Consider
factors like production costs, competitor pricing, and perceived value. You
might also explore whether premium or value pricing aligns better with your
target market.
7. Marketing and Promotion: Develop a marketing plan to attract customers
to your dairy parlour. This could include online and offline strategies, such as
social media marketing, partnerships with local businesses, loyalty programs,
and special events.
8. Regulatory and Industry Trends: Stay updated on any regulations or
industry trends that could affect your dairy parlour. This could include food
safety regulations, health and nutrition trends, and sustainability practices.

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9. Financial Projections: Estimate the costs involved in setting up and running
your dairy parlour. Create financial projections that include revenue forecasts,
operating expenses, and potential profits. This will help you gauge the financial
viability of your venture.

SIGNIFICANCE OF THE STUDY

This study intended to evaluate the performance of Visakha dairy parlour and
compare it with competitors and benchmarking Visakha dairy parlour products.
To plan for achieving the goal for Visakha dairy parlour. And to deep dive into
dairy industry in order to get insights it. This study also focuses on customers’
consumption pattern in order to know about consumer preferences and suggest
that kind of model for Visakha dairy parlour. The milk bulk collection are
established in centrally located villages/provided head-quarters form where the
bill return centres less than 10km hence each ultra virus rays arrays their own
transportation from the villages to bulk centres and the dairy providing
transportation charges on the basis of quality. There is no problem in
transportation in bulk collection

RESEARCH METHODOLOGY
There are numbers of approaches, medium or techniques used in research
method to collect Data. According to the nature of study we can decide the
research methodology. Research is a Systematic way of finding solutions to the
problems. Quantitative research method is used That includes descriptive and
analytical research.
There are multiple types of research methods are available. Applied Research
seeks to solve practical problems. It is used to find solutions to everyday
problems rather than acquiring knowledge for knowledge’s sake. In basic
research is to expand our knowledge but this is not particularly done to create
something new. Exploratory research is a type of research which is used to
identifying the problems in a business where no prior information is available.
Exploratory research is a type of research design that is used to gain insights,
ideas, and a preliminary understanding of a problem or a situation. It is

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particularly useful when the topic is relatively unknown or when there is limited
existing information about it.
In the context of identifying problems in a business, exploratory research helps
to uncover potential issues, challenges, or opportunities that might not be
immediately apparent. Its primary purpose is to explore and gain deeper
understanding of the problem or phenomenon under investigation and to
generate insights or hypotheses that can be further tested in future research. It
is often conducted at the beginning of the research project when the research
question is still vague or the researcher has limited information about the topic.
It is also used when the research problem is complex or multi-dimensional and
require comprehensive understanding before more targeted research can be
undertaken. Select the appropriate research methods based on the objectives.
A combination of qualitative and quantitative methods would likely be
beneficial.

Qualitative Research
• Focus Groups: Organize focus groups with target consumers to gain insights
into their preferences, needs, and pain points related to ready-to-eat products.
Explore potential product features and packaging preferences.
• In-depth Interviews: Conduct one-on-one interviews with key stakeholders,
such as retailers, distributors, and industry experts, to understand market
dynamics, distribution challenges, and potential partnership opportunities.

Quantitative Research
• Online Surveys:
Create and distribute online surveys to a representative sample of the target
market. The survey should assess awareness, purchase intent, and willingness
to pay for the new product. It should also include questions about competitors
and consumption habits.
• Data Analysis: Analyse publicly available data and relevant market reports to
identify market trends, demand patterns, and growth opportunities.

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SCOPE OF THE STUDY
 To identify competitors and their offerings.
 To identify customers demand, need from a dairy parlour.
 To identify the awareness about Visakha dairy parlour.
 My project was on grounded Visakha dairy parlour products like Fresh
Milk, UHT Milk, Curd, Butter Milk, Yoghurt, Milk Shakes, Lassi, Flavoured
Milk, Mistidoi, Ghee, Panner, Butter, Skimmed Milk Powder, Sweets,
Bakery

QUALITY POLICY
Visakha Dairy endeavors to be one of the largest processors of milk and
manufactures of milk products in India. We are committed to provide hygienic,
safe and nutritious products while meeting the statutory and legal requirements
to achieve customer satisfaction and in-turn to improve the economy of our
member producers. To this effect the management is committed to
communicate, implement, maintain and continually improve the Quality and
Food Safety Management Systems Dairy.

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CHAPTER 2: LITERATURE REVIEW
A literature review and history of dairy parlours would provide a comprehensive
overview of the evolution of dairy farming practices and the development of
dairy facilities over time. Here's a brief outline of what such a review might
cover:
History of Dairy Farming and Parlours:
Early Dairy Farming Practices: Explore the historical origins of dairy farming,
including the domestication of cattle and the earliest methods of milk collection
and utilization. Discuss how early civilizations and cultures utilized dairy
products for sustenance and trade.
Industrial Revolution and Technological Advancements: Examine the impact of
the Industrial Revolution on agriculture, including advancements in milking
technology, transportation, and preservation methods. Discuss the shift from
small-scale, traditional dairy farming to larger, more mechanized operations.
Emergence of Modern Dairy Parlours: Trace the development of modern dairy
parlours and facilities in the late 19th and early 20th centuries. Highlight key
innovations, such as improved milking machines, refrigeration, and
pasteurization.
Transition to Automated Systems: Explore the introduction and adoption of
automated milking systems and robotic technologies in dairy parlours. Examine
the benefits and challenges associated with these technological advancements.
Sustainability and Modern Challenges: Discuss the contemporary focus on
sustainable dairy farming practices, including waste management,
environmental impact, and animal welfare. Examine how dairy parlours are
adapting to address challenges related to climate change, resource availability,
and consumer preferences.
A comprehensive literature review and history of dairy parlours would involve
delving into academic journals, historical records, agricultural literature, and
scientific publications to present a well-rounded understanding of the evolution
of dairy farming practices and the current state of dairy parlour management.

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OVERVIEW OF STUDY
FMCG stands for "Fast Moving Consumer Goods." These are consumer products
that are typically sold quickly and at relatively low cost. FMCG products are in
high demand, have a short shelf life, and are purchased frequently by
consumers. They are a significant part of everyday life and include a wide range
of products that people use on a daily basis. Fast-moving consumer goods
(FMCG) sector is the 4th largest sector in the Indian economy with Household
and Personal Care accounting for 50 per cent of FMCG sales in India. Growing
awareness, easier access and changing lifestyles have been the key growth
drivers for the sector. The urban segment (accounts for a revenue share of
around 55 per cent) is the largest contributor to the overall revenue generated
by the FMCG sector in India However, in the last few years, the FMCG market
has grown at a faster pace in rural India compared with urban India. Semi-urban
and rural segments are growing at a rapid pace and FMCG products account for
50 per cent of total rural spending.
Here are some key characteristics and examples of FMCG products:
Characteristics of FMCG:
1. Rapid Turnover: FMCG products are consumed quickly, and their
turnover rate is high. Consumers purchase these products frequently and
regularly.
2. Low Price: FMCG items are usually priced lower compared to durable
goods or luxury items. This affordability contributes to their high demand
and frequent purchase.
3. Wide Distribution: FMCG products are distributed widely through various
channels, including supermarkets, convenience stores, online platforms,
and more.
4. Short Shelf Life: Many FMCG items, such as perishable foods and
beverages, have a short shelf life, which requires efficient inventory
management to minimize wastage.
5. Brand Loyalty: While price plays a role in consumer choices, brand loyalty
and consumer preferences also heavily influence the purchase decisions
for FMCG products.

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 6. Marketing and Advertising: FMCG companies invest significantly in
marketing and advertising to maintain brand awareness and attract
consumers in a highly competitive market.

Government Initiatives Some of the major initiatives taken by the government

to promote the FMCG sector in India are as follows:
The Government of India has approved 100 per cent Foreign Direct Investment
(FDI) in the cash and carry segment and in single-brand retail along with 51 per
cent FDI in multi brand retail.
The Government of India has drafted a new Consumer Protection Bill with
special emphasis on setting up an extensive mechanism to ensure simple,
speedy, accessible, affordable and timely delivery of justice to consumers.
The Goods and Services Tax (GST) is beneficial for the FMCG industry as many of
the FMCG products such as Soap, Toothpaste and Hair oil now come under 18
per cent tax bracket against the previous 23-24 per cent rate. Also rates on food
products and hygiene products have been reduced to 0-5 per cent and 12-18 per
cent respectively.
The GST is expected to transform logistics in the FMCG sector into a modern and
efficient model as all major corporations are remodelling their operations into
larger logistics and warehousing.
FLUCTUATI0N IN THE SUPPLY 0F MILK
The first problem of this industry is the search of fluid mile the demand for milk
products is almost uniform throughout the country in all seasons in the year.
whereas by and large milk production is small and scattered that too is distinctly
seasonal. The summer months of April 10 July record acute shortage of milk
while in winter or number to February. Supply of milk would be 200 to 300 per
cell higher. So the industry requires diversification or production of milk foods
and other production. This can be preserved and so throughout the year.

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NEED OF THE STUDY
Visakha dairy has a very image of supplying good quality of milk at reasonable
price to the consumers. It has a hugged turn over and profits and some other
reason gave birth to many privates dairies as Visakha dairy occupies a very
important place in our state, a through survey is made to know about the
consumer awareness there , attitudes toward all the dairy products. The
purpose of production is consumption and one’s own purpose will be served
only if the consumer interests are attended to quality of service rendered by
VISAKHA DAIRY ensures the organization regarding customer satisfaction in
their product. The aim of this study is to provide an insight into the
characteristics of the consumer markets, identify the possible source of
dissatisfaction, work toward handing complaints from consumer, which in turn
help in enhancing customer satisfaction and prevent dissatisfaction. Keeping in
view, the private dairies. Operation in vizag district milk market a thorough study
is also made to know about the distribution of the products on visakha dairy.
which include a study of various factors include process, quality, availability,
packaging, taste usage time and so on.

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 OVERVIEW OF THE COMPANY
Visakha dairy is located on NH-5 opp.to BHPV at Visakhapatnam on the road
from to Gajuwaka. The dairy complex includes and inputs, effluent treatment
plant, electrical sub-station, administration office, staff canteen and residential
quarters. The milk shed of Sri Vijay Visakhapatnam comprised of three districts
Srikakulam, Vizianagaram, Visakhapatnam. These three districts are situated in
the north eastern port of the coastal area of Andhra Pradesh state and
considered to be for agricultural and industrial development. The perennial
sources of water were from irrigation through rivers lets is also very much
limited especially on Visakhapatnam and Vizianagaram district, therefore, the
rural farmers belonging to small and marginal categories have necessarily to
depend on some other source of income for the livelihood.
Visakha Milk union was registered under Co-operative Act in 1973 and
Commissioned in the year 27th September, 1977 with an initial capacity of 50
thousand litres per day. The found of Visakha Dairy parlour was Sri Adari Tulasi
Rao. Visakha Milk Union comprises of 3 districts i.e., Srikakulam, Vizianagaram
and Visakhapatnam are its operational area. Visakha Milk Union took conversion
to 1995 Model Act as Sri Vijaya visakha Milk Producers Mutually Aided
Cooperative Union Limited, (Visakha Cooperative Dairy) on 08-07-1999. Visakha
Milk Union converted as “ Sri Vijaya Visakha Milk Producers Company Limited”
under the Companies Act 1956 under Part –IX A with effect from 06-01-2006.
Visakha Dairy is one of the fastest growing Milk & Milk Products Manufacturing
Company having plants at Visakhapatnam and Rangampeta (EG) in Andhra
Pradesh.
Visakha Dairy procures milk from more than 3 Lakh farmers covering 3500
villages. The company is farmer-centric and consumer-focused, relies on
cooperative principles and conducts fair and transparent procurement pricing
through an online collection system, timely payments and control pilferages.
Visakha Dairy further partakes in welfare activities for farmers, breed
development and veterinary services. Each plant at Visakha Dairy is equipped
with state-of-the-art technology and ISO 22000:2018 certified.
Presently both the plants have capacity to handle up to 9 Lakh litres per day.
Consumers expect marketers to deliver products in the locations and forms they
require. To meet expectations of such demanding consumers, alignments of our
Distribution Highways of Fresh, Chilled, Frozen and Ambient products were
already made by introducing new project strategies. Subsequently, a major
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initiative was taken to enhance distribution network to smaller towns. Visakha
Dairy manufactures all variants of Dairy Products viz. Fresh Milk, UHT Milk, Curd,
Butter Milk, Yoghurt, Milk Shakes, Lassi, Flavoured Milk, Mistidoi, Ghee, Panner,
Butter, Skimmed Milk Powder, Sweets, Bakery items etc., and sold in Andhra
Pradesh, Telangana, Odisha and Chattisgarh markets.

The government after considering dairying as one of the best instrument for
brining socio-economic development in the rural areas has started a dairy with
a handling capacity 0f 1000 liters per day in 1996. The union was registered
under cooperative act in 1973. After observing the success of the small dairy,
the present new dairy was constructed with initial capacity 50,000 liters with bn
estimated cost of rs.1.37 crore with the assistance from NCDC, new Delhi and
procurement started increasing year by year by leaps and bounds. Cattle feed
plants with more than 200 MT per day capacity are supplying cattle feed to
farmers at subsidized rates. Apart from this corn silage is being manufactured
and supplied in bales to farmers. To improve quality and reduce risk of spoilage,
logistics more than 100 Bulk Milk Cooling Centres covering every 10 kms radius
have been constructed with total capacity of 900,000 litres. Milk Powder Plant
with capacity of 13MTPD was constructed in the year 1998 to convert surplus
milk into Skimmed Milk Powder during flush season. Constructed Aseptic
Packing Station in the year 2001 with a capacity of 30,000 litres per day for UHT
milk production and expanded to 3.0 lakh litres per day capacity in 2015. Visakha
Dairy enjoys 10% market share in UHT Milk on pan India basis. Visakha Dairy
sells Milk, Milk Shakes, Flavoured Milk etc., in UHT segment. To overcome power
crisis and to utilise renewable energy sources, commissioned Solar power plant
in record time with a capacity of 1.65 MW capacity at Vizianagaram for captive
usage & supplying to APTRANSCO Grid. Visakha Dairy is giving employment
opportunity to more than 1500 employees directly an indirectly another 1000
employees including contract labour.
Fresh milk is the most consumed dairy product in India. It is also the most trusted
source for essential nutrients for health. With the increasing population the
consumption of milk is also on the rise. Health consciousness, dietary needs and
rising living standard have also been major contributors to rising demand of
fresh milk. Milk is coming to liquid milk in the following manner.
Toned milk: It is a doubled-toned milk," is a type of milk that has had a portion
of its fat content removed and then replaced with water. This process is carried
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out to reduce the overall fat content of the milk while maintaining a certain level
of creaminess and nutritional value. Toned milk typically contains around 3% fat
content, making it lower in fat compared to whole milk, which usually contains
around 3.5-4% fat.
UHT MILK: UHT process typically involves heating the milk to a temperature
around 135 to 150 degrees Celsius (275 to 302 degrees Fahrenheit) for a few
seconds. This rapid and intense heating effectively destroys harmful
microorganisms, enzymes, and bacteria, which extends the milk's shelf life to
several months when stored in aseptic packaging that prevents the entry of air
and contaminants.
Full Cream Milk: It is also known as whole milk, is a type of milk that contains
the natural proportion of milk fat present in milk as it comes from the cow. It is
the milk that hasn't had any of its fat content removed through skimming or
processing. Full cream milk is typically around 3.5-4% fat by weight, although the
exact fat content can vary slightly depending on the cow's breed, diet, and other
factors. Processed at state-of-the-art plants, this rich in fat and pure milk is
suitable for those with low BMI. Heritage offers 500 ml sachet.
Curd: A value-added product with a selected culture of beneficial bacteria to
impart thick, creamy, rich and glossy texture.
Butter Milk: Prepared from fresh and pure curd in processing plants with utmost
care. There are different variants available like plain, salted, spicy and jeera
flavour.
Paneer: changing lifestyles and evolving dietary preferences have a significant
impact on the food industry, including the growth of the paneer segment.
Paneer, a type of Indian cheese, is rich in protein and is a popular ingredient in
various cuisines.

FINANCIAL HIGHLIGHTS OF THE ORGANISATION

The Visakha Dairy has come a long way under Mr. Tulasi Rao’s stewardship,
growing from a 7,000 litre-a-day plant to generating over five lakh litres a day
now. Its annual turnover has increased from a mere ₹11 crore to around ₹1,500
crore today.
Powder Plant capacity 13 MT per day – Capital outlay 7 Crores commissioned in
May, 2011.
21 | P a g e
U.H.T. Plant capacity 30,000 Liters Per Day and commend on 27-05-2011.
Thereafter one 500 ml FINO is added in the year 2012. Later 2 FINO TFA1 –
Machines commissioned 28-06-2012.
Presently on average day wise packing of all types U.H.T. Milk crossed 80,000 lts
per day.
Milk Pouch Filling Unit – II constructed to accommodate 2.5 Lakh Liters Per Day.
Fat Handling Unit – II: At present 4 MTs capacity Ghee/Butter Handling and
strengthened to 9 MTs.
Extended Shelf Life Packing - In order to facilitate the availability of milk to the
public more convenience, a specially processed milk was launched in the
pouches which has a shelf life of 14 days.
Visakha Dairy proudly launched such milk variant for the FIRST TIME in Indian
market where as major FMCG companies are following us, the plant has a
capacity of 2.5 lakhs / day

Significant Factors for Success:

Product Portfolio: Offering the best quality & innovative product basket at
competitive prices to exceed the consumer expectations.
Partners in Success: Partnering with the right kind of trade channels which can
support us in reaching out to consumers in the minimum possible time while
delivering on the promise of best shelf space for our brands.
Processes: Putting in place the best industry practices and processes which
would enable us to deliver on the brand promise.
People: Attracting and retaining the best people who can bring value to the
system with customer orientation (both internal as well as external), which will
go long way in achieving customer delight and gaining the confidence of channel
partners that would work as insulator against the competition.
Favourable endowment of natural resources for grass production. On-going
pursuit for innovation and technological improvement by farmers, input
suppliers, public research and education institutions, manufacturing, and
marketing companies. Early access to guaranteed market. Farmers’ strong
ideology towards control and ownership of downstream manufacturing and

22 | P a g e
marketing activities led to vertical integration and continuous institutional and
organisational changes.
Running a successful dairy parlor involves a combination of factors that
contribute to efficient operations, customer satisfaction, and profitability. Here
are some significant factors to consider for dairy parlor success:
1. Quality of Products: The quality of dairy products like milk, cheese,
butter, and yogurt is crucial. Ensure that your products are fresh,
hygienically processed, and free from contaminants. High-quality
products will attract and retain customers.
2. Hygiene and Sanitation: Maintaining a clean and hygienic environment is
vital to ensure food safety and customer confidence. Regular cleaning and
sanitation procedures should be followed for equipment, premises, and
personnel.
3. Animal Welfare and Milk Quality: If your dairy parlour involves dairy
farming, proper care of animals is crucial for milk quality and overall
ethical standards. Healthy, well-cared-for animals are more likely to
produce high-quality milk.
4. Skilled Staff: Employ skilled and knowledgeable staff who understand the
intricacies of dairy production, equipment operation, and customer
service. Proper training and continuous improvement programs should be
in place.
5. Customer Service: Providing excellent customer service helps build a loyal
customer base. Friendly staff, prompt service, addressing customer
concerns, and creating a welcoming atmosphere all contribute to a
positive customer experience.
6. Marketing and Branding: Effective marketing strategies help promote
your dairy parlour. This includes branding, advertising, social media
presence, and possibly offering special deals or promotions to attract
customers.
7. Variety and Innovation: Offering a variety of dairy products and exploring
innovative options can set your parlour apart. Consider introducing
unique flavors, products, or packaging to capture customer interest.
8. Supply Chain Management: Efficient supply chain management ensures
a steady supply of raw materials, such as milk, and other necessary
23 | P a g e
 ingredients. Timely deliveries are essential to avoid disruptions in
production.
9. Cost Control and Efficiency: Monitoring operational costs and finding
ways to improve efficiency can significantly impact profitability. This
includes optimizing resource utilization, energy consumption, and
minimizing waste.
10. Regulatory Compliance: Complying with food safety and health
regulations is non-negotiable. Adhering to industry standards and legal
requirements ensures the safety of your products and helps build trust
with customers.
11. Technology Adoption: Embracing modern technologies can enhance
various aspects of your dairy parlour, from production and inventory
management to customer engagement and online ordering systems.
12. Community Engagement: Engaging with the local community can foster
a sense of belonging and support for your dairy parlour. Participate in
community events, support local causes, and build relationships with
neighboring businesses.
13. Sustainability Practices: Implement sustainable practices wherever
possible, such as waste reduction, energy efficiency, and responsible
sourcing. These practices can resonate with environmentally conscious
customers.
14. Feedback and Continuous Improvement: Actively seek customer
feedback and use it to improve your products and services. Continuous
improvement based on customer preferences and market trends is
essential for staying competitive.
Remember that the success of a dairy parlour depends on a combination of
these factors, tailored to your specific business context and goals. Regularly
evaluating and adjusting your strategies based on market trends and customer
feedback is key to maintaining long-term success.
Others: Every single work is well organized.
 Quality is their first priority.
 Customer relationship is always given importance.
 Customer satisfaction is always one of their key goals.
 Good working environment.

24 | P a g e
  Infrastructure of the company is ideal for the employees
working there; it facilitates and increases
 the efficiency of the production and manufacture.
 Employees are very dedicated and committed towards their
profession

MILK SUPPLY CHAIN

25 | P a g e
It includes milking the cow, transportation of milk to the collection centre. Once
milk collected in the centre then collecting the milk sample. Weighing the milk,
testing for fat content and dispatching to chilling centre.
Milk procurement: This union is procuring milk through a network of 886
primary milk producers cooperative and 1791 un- registered centres. The
average daily procurement of the union during 2005-06 is 3,94,681liters per day
and present procurement is 4,27,907 litres per day. The peak quantity touched
during the year 2005-2006 is 4,46,907 litres. This is another vital technical input
activity implemented with long vision to improve the milk procurement apart
from procuring the day-to-day available surplus.
Chilling Centres: The raw chilled milk is then transported to the nearest
processing plant through tankers for onward processing into retail milk packages
or to manufacture dairy based value added products.
Processing Plant: The processing operations are spread across 18 processing
plants located in multiple states in India with an aggregate installed capacity of
2.65 MLPD of raw milk. The company has introduced fully automated processing
lines with the processing infrastructure designed to ensure efficient operations
and high product quality standards.

Milk marketing:
Milk marketing refers to the processes and strategies involved in promoting,
distributing, and selling milk and dairy products to consumers. It encompasses a
wide range of activities aimed at ensuring that milk produced on dairy farms
reaches consumers in a safe, efficient, and appealing manner. Milk marketing
involves various stakeholders, including dairy farmers, processors, distributors,
retailers, and consumers.
Skimmed Milk powder
skimmed milk powder is mostly consumed by the Indian dairy processors to
reconstitute it into milk in the low milk producing seasons. It is obtained by
removing the fat from milk and then evaporating the remaining liquid to
produce a powder. It is a concentrated source of milk solids and is commonly
used in various food applications and as an ingredient in the food industry. The
process of producing skimmed milk powder involves the following steps:

26 | P a g e
 1. Skimming: The milk is first separated into cream and skim milk using a
centrifugal separator or a similar process. The cream, which contains the
fat, is removed, leaving behind skim milk.
2. Concentration: The skim milk is then concentrated by evaporating a
portion of the water. This is usually done under controlled conditions to
prevent excessive heat that could damage the proteins and other
components in the milk.
3. Spray Drying: The concentrated skim milk is then spray-dried. In this
process, the liquid milk concentrate is sprayed into a hot air chamber,
where the droplets dry quickly, leaving behind fine particles of skimmed
milk powder.
Skimmed milk powder has a longer shelf life compared to liquid milk because
the removal of fat reduces the likelihood of spoilage. It is often used in the
food industry to add milk solids to various products such as baked goods,
confectionery, dairy beverages, and processed foods. It's also used as a base
for reconstituting milk by adding water.
Consumers also use skimmed milk powder as a convenient source of milk,
especially in areas where access to fresh milk is limited or where storage is an
issue.
This product had high demand internationally, especially in Europe as there
were restrictions on its production and supply. However, in 2015, those
restrictions were lifted and it opened up the market. This led to a spike in
production and fall in international SMP prices, leading to piling up of
inventory in India.

Here are some key aspects of milk marketing:

1. Product Differentiation and Branding:
• Dairy companies often differentiate their milk products by promoting
factors like organic, hormone-free, locally sourced, or specialty milk (e.g.,
A2 milk).
• Effective branding and packaging play a crucial role in making milk
products stand out on store shelves.
2. Distribution and Supply Chain:

27 | P a g e
 • A well-organized distribution network is essential to ensure that milk
products are delivered to retailers and consumers in a timely manner.
• Cold chain logistics are crucial to maintain the freshness and quality of
milk during transportation.
3. Retail Placement and Merchandising:
• Milk products are prominently placed in supermarkets and grocery stores
to increase visibility and accessibility to consumers.
• Eye-catching displays and promotions can influence purchasing decisions.
4. Advertising and Promotion:
• Dairy companies use advertising campaigns to create awareness and
attract consumers to their milk products.
• Promotions, discounts, and loyalty programs can incentivize consumers
to purchase specific brands.
5. Digital Marketing and E-commerce:
• Increasingly, dairy companies are using digital platforms and e-commerce
to reach consumers directly.
• Online marketing, social media, and online delivery services are used to
connect with tech-savvy consumers.
6. Health and Nutritional Messaging:
• Nutritional benefits of milk, such as being a good source of calcium and
protein, are often highlighted in marketing materials.
• Health-conscious consumers are targeted with messages related to the
nutritional value of milk.
7. Consumer Education:
• Dairy companies often engage in educational campaigns to inform
consumers about the benefits of milk consumption and proper storage
practices.
• Cooking and recipe ideas involving milk products can also be shared to
encourage usage.
8. Packaging Innovation:

28 | P a g e
 • Packaging innovations, such as convenient single-serve containers,
resealable caps, and eco-friendly materials, can attract consumers.
9. Regulatory Compliance and Quality Assurance:
• Adherence to food safety standards and quality assurance processes are
crucial to maintain consumer trust and satisfaction.
10. Sustainability and Ethical Practices: - Some consumers prioritize
sustainability and ethical practices in their purchasing decisions. Marketing
strategies that emphasize sustainable farming practices and animal welfare can
resonate with these consumers.
Effective milk marketing strategies consider consumer preferences, market
trends, and cultural factors. They aim to create a positive brand image, build
consumer trust, and ultimately drive sales while meeting the demand for safe
and high-quality dairy products.
SALES PROMOTION ACTIVITES: As a part of sales promotion we are doing
activities such as placement of hoardings in important place, giving glow sign
boards to retail outlets, wall paining at retail outlets, as well as hop paintings,
distributing banner and carry bags, press ads local cable television as FM radios
advertising glow signboards distributing big size umbrellas, conducting
exhibition, trade shows, we are sponsoring some of the events where public
particulars are good. We are offering incentives to our commission agents as
well as our filed staff on achievement of targets.

Functional Department of Dairy Marketing

Marketing department of any organization plays a vital role. Visakha dairy is
having efficient marketing personal. The main functions of the marketing
departments as the 1 st and foremost job of the marketing personnel is
identification customer to their products. This can be through market surveys.
Belong with identification of the customer the marketing personnel have
identify the needs of the customer i.e what are the features quality and size,
prose is expected from the products.
Next important function is the genation of the business. The dairy products as
compared to competition products and explain the cost benefits and qualities
and products. This is can be done through using various sales promotion tools
such discount coupons, promotional litters and advertising through various

29 | P a g e
media and through direct marketing. The next task of the marketing department
is to supply the product accurately at right time.
People living in the different places may vary in their buying of the same product.
The dairy segmenting the milk market by selling mixed milk only in Srikakulam
and toned, whole milk in all other places. Visakha dairy has appointed efficient
marketing personnel for collecting all the market information of its products and
its competitor’s products.

PRODUCT DEVELOPMENT
Product development is due of the important task of the dairy will watch the
day-by-day devel0pment in milk market necessary changes in its product mix to
meet the requirement of the buyers. The development may be relating to the
quality, size, features, packing, or exiting products the development of new
product. In this process, visakha dairy recently developed “good milk” which was
introduced in the market with vijaya brand name.
The strengthening of the co-operatives model has aided growth of the milk
processing segment. As this model ensures farmers retain part ownership,
farmers are assured better returns, thus incentivizing them to increase the
supply of milk to co-operatives. Dairy farmers also benefit from animal
husbandry, better quality fodder, and awareness programs organized by co -
operatives. Furthermore, a subsidy of Rs.4-5 per litre of milk supplied to the
farmer by the co-operative dairies, has also encouraged new farmers to enter
milk production, enabling co-operative organizations to establish a strong
foothold of their brands in key states like Gujarat (Amul), Karnataka (Nandini),
Andhra Pradesh (Vijaya, visakha dairy) and Tamil Nadu (Aavin) To counter this,
private players like Nestle and Britannia are investing in differentiated products
like high quality tetra pack ultra - high-temperature processed milk (UHT) and
flavoured milk. These products sell at a 50-60% premium compared with milk
sold in pouches, and cater mainly to very health-conscious consumers. For
example, ‘Nestle A+ slim’ is positioned as milk with 15 times less fat content
when compared with regular toned milk, while and ‘Nestle a+ nourish’ targets
the kids’ segment. In response, the co-operative players are also launching new
products to counter the competition from private players. The UHT milk
segment has seen rising competition, with big players like Amul, Parag, Mother
Dairy and Nandini already vying for a larger share of the pie.

30 | P a g e
The Indian dairy market is witnessing an increased investment and consolidation
under which smaller firms are selling to the bigger ones in order to cope up with
rising input cost and challenges in achieving scale. Given the challenges of the
industry, numerous sub scale players have sold off to larger players in the past
and in future also, we expect this trend of increased mergers and acquisitions to
sustain. Being regional players, these smaller players provide readymade
regional procurement and consumption market but may have other challenges
that impede their ability to run operations efficiently. For instance, ITC Limited,
recently entered the dairy sector with its ‘Ashirwad’ brand of ghee and plans to
add more products to its portfolio offerings .
Marketing strategies:
All marketing strategy is built on STP- segmentation targeting and positioning. A
company discovers different needs and groups in the market place, targets
those needs and group that it can satisfy in a superior way and then positions its
offering so that the target market recognized the companies distinctive offering
and image. If a company does a poor of positioning the market will be confused
as to what to expect if a company does an excellent of job of positioning then it
can work out rest of its marketing planning and differentiation from its
positioning straggly.
A company must decide how many ideas to convey in its positioning to its target
customer many markets advocate promoting only one central benefit. Rosser
reeves believes a company should developed a unique selling proposition for
each brand.

SWOT analysis is a strategic planning tool used to assess the internal and
external factors affecting an organization, project, product, or individual. It
stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis
helps to identify and understand these factors, enabling better decision-making
and strategic planning. Here's an overview of each component:
Strengths: These are the internal attributes and resources that give an entity a
competitive advantage. They highlight what the entity does well and what sets
it apart from others. Examples of strengths could include a strong brand
reputation, skilled workforce, proprietary technology, efficient processes, or
unique products/services.

31 | P a g e
Weaknesses: These are the internal aspects that put the entity at a disadvantage
compared to others. They represent areas that need improvement or
enhancement. Weaknesses could include lack of resources, outdated
technology, poor customer service, high production costs, or organizational
inefficiencies.
Opportunities: These are external factors that an entity can capitalize on to
achieve its goals. Opportunities are areas where the entity can grow or expand
its reach. These could include emerging markets, technological advancements,
changing consumer preferences, or gaps in the market that the entity could fill.
Threats: These are external factors that could negatively impact the entity's
success or viability. Threats are challenging that the entity needs to be aware of
and possibly mitigate. Threats could come from competition, economic
downturns, regulatory changes, technological disruptions, or shifts in consumer
behaviour.
When conducting a SWOT analysis, it's important to be honest and
comprehensive in assessing each of these four areas. The goal is to gain a clear
understanding of the current state and potential future directions. Once the
analysis is complete, it can be used to develop strategies that leverage strengths,
address weaknesses, take advantage of opportunities, and mitigate threats. This
analysis is applicable to a wide range of scenarios, including business planning,
project management, personal development, and more.

32 | P a g e
 CHAPTER-3: COMPETITIORS
HERITAGE
Founder: Mr. Nara Chandra Babu Naidu.
It was founded in 1992 with the objective to serve the farming community in
India, Heritage Foods is India’s one of the leading Dairy companies. Over the
span of 3 decades, Heritage Foods has not only stayed true its values and mission
but also created a diversified product portfolio, which includes milk and many
milk-based value-added products. The company has a highly qualified and
experienced leadership team with decades of experience spanning across
business functions and is guided by a strong and eminent independent board of
directors. Over the years, the company has created strong long-lasting
relationships with 300,000+ dairy farmers for milk procurement across 8 states
in India.
The company has 18 State-of-the-art milk processing facilities with a total
processing capacity of 2.65 Mn litres per day (MLPD), and 202 Chilling Units with
2.22 MLPD milk chilling capacity. Heritage Foods has created deeply entrenched
distribution network with products sold across 11 States in India and including
122 Heritage Distribution Centres, 130,000+ Retail Outlets, 27 organized retail
chains across India and 859 Heritage Parlours. It also has a strong presence
across 16 E-Commerce websites. Heritage adopts a technology integrated
network enabled by 11,300+ Milk Procurement Representatives & 2,100+
distribution vehicles across 11 states on the back of 6,500+ distributors who
deliver Heritage products daily at doorsteps. The company has a technologically
advanced R&D infrastructure with stringent quality control for the benefit of
consumers.
A heritage dairy parlour is typically associated with a rich history, often tracing
its origins back several generations. It might have been a working dairy farm for
a long time and has retained its original structures and practices. The parlour
might feature architecture and structures that reflect the design and
construction methods of the past. This could include traditional barns, milking
parlours, storage facilities, and other farm buildings. Visitors to a heritage dairy
parlour can experience hands-on activities such as milking cows by hand,
churning butter, and participating in other traditional dairy-related tasks.

33 | P a g e
AMUL
India’s largest food product brand and dairy exporter, dairy cooperative of
Gujarat, popularly known as Amul. It is one of the most successful and trusted
brands of the country. Amul is a renowned dairy cooperative in India, known for
its wide range of dairy products and its innovative marketing campaigns. The full
form of "Amul" is "Anand Milk Union Limited," and it was founded in 1946 in
Anand, a city in the state of Gujarat, India. The cooperative was established to
address the issues faced by milk producers in the region and to provide them
with a fair and organized system for milk collection, processing, and distribution.

34 | P a g e
Market under brand names of Amul and Sagar and operated through 60 sales
office. It has network over 10,000 dealers and 1 million retailers making it one
of the largest network in the country. It has consistently focus on customer
satisfaction and quality of the product. For its hardest effort it received awards
and accolades over the years. Amul collects milk from thousands of dairy
farmers across Gujarat and other states in India. This milk is then processed to
make various dairy products. Amul offers a diverse range of dairy products,
including milk, butter, ghee (clarified butter), cheese, ice cream, yogurt, milk
powder, and more. Their products are known for their quality and affordability.
Amul is famous for its creative and memorable advertising campaigns featuring
the iconic "Amul Girl" – a young girl in traditional attire who appears on
billboards and advertisements, often accompanied by witty and thought-
provoking taglines. These campaigns have become an integral part of Indian
popular culture. It has been a pioneer in introducing new products to the
market. For example, Amul was one of the first brands to launch packaged milk
in India, addressing issues of hygiene and convenience. The success of Amul has
inspired the growth of other dairy cooperatives in India. The "Amul model" has
been studied and replicated in other parts of the country, contributing to rural
development and empowering local farmers.
While Amul primarily operates in India, its products are also exported to various
countries around the world. Amul's cooperative structure and practices have
positively impacted the lives of numerous dairy farmers and their families by
providing them with a steady source of income and improved living standards.
Amul Dairy's story is an inspiring example of how a cooperative initiative can
transform the lives of farmers and create a successful business model that
benefits both producers and consumers.

35 | P a g e
VIJAYA DAIRY:
Vijaya Dairy is a well-known dairy brand in the southern Indian state of Andhra
Pradesh. It is operated by the Andhra Pradesh Dairy Development Cooperative
Federation (APDDCF), which is a cooperative society formed to promote dairy
farming, milk production, and the marketing of dairy products. Cooperative
Structure: Similar to Amul, Vijaya Dairy operates on a cooperative model. It is
owned and managed by dairy farmers, who are members of the cooperative
society. This structure ensures that the benefits of the dairy industry are shared
among the farmers themselves. Vijaya Dairy offers a wide range of dairy
products, including fresh milk, milk products like ghee (clarified butter), butter,
curd (yogurt), buttermilk, and various types of sweets and confections made
from milk. The dairy places a strong emphasis on maintaining high-quality
standards for its products. It often conducts quality checks and ensures that the
milk and products offered to consumers are safe and nutritious. Vijaya Dairy
plays a significant role in the economic development of rural areas in Andhra
Pradesh by providing a stable source of income for dairy farmers and
contributing to the overall growth of the dairy industry in the region. Apart from
its economic contributions, Vijaya Dairy also engages in various social initiatives.
These may include offering support to local communities, contributing to
educational programs, and participating in environmental sustainability efforts.
Vijaya Dairy is an important player in the dairy sector of Andhra Pradesh,
providing dairy products to consumers while also improving the livelihoods of
dairy farmers through its cooperative structure. It exemplifies how cooperatives
can empower farmers and contribute to the growth of the local economy

36 | P a g e
DODLA DAIRY
Dodla Dairy Ltd is India’s leading private sector dairy company
processing and selling milk and dairy products in over 9 states in India
under the brand name Dodla. The company has a clear strategy, a strong
vision, robust values and a team of experienced people. We have made
progress this year by sticking to our strategy and continuing to invest in
our leading brands and our plants. Our readiness to proactively reshape
our business to cope with new challenges will result in sustained growth
and long-term value creation for everyone with an interest in Dodla
Dairy. It is one of the competitors for Visakha Dairy. Dodla dairy was
commenced production at Hyderabad and land acquired for
Rajahmundry plant which is located in Andhra Pradesh. Chart analysis
for Dadla dairy for the last one year is shown below

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CHAPTER-5: ANALYSIS AND INTERPRETATI0N 0F STUDY AND FINDINGS
Buying pattern of the consumers
Buying pattern Percentage of Consumers
Milk Booth 37
Door delivery 30
Kirana shop 24
Departmental store 2
Local Vendors 6
Parlours 1

% of consumers

2
6 1

37
24 Milk booth
Door delivery
Kirana shop
Departmental store
Local vendor
30
parlours

Interpretation: The above graph shows the buying pattern of the consumers.
We observed that majority of the consumers buy the milk from milk booths
while very few from dept stores. 24 percent 0f the customers buy the milk from
kirana shops where as 6 percent of the customers were buying from local
vendors.
Behaviour of milk deliver van driver is?
Response Number of Respondents
Excellent 60
Good 21
Average 15
Bad 4

38 | P a g e
 number of respondents
60

50

40

30

20

10

0
Excellent
Good
Average
Bad

number of respondents

The factors that motivates the consumers to buy that Brand

Factors Percentage
Taste/Quality 76
Easy availability 9
Packing Design 7
Advertisements 8

Interpretation: It is observed that 76 percent of the customers consider the

quality where as 9 percent consider easy availability of the product, 8 percent
advertisement and 7 percent consider packing/design.

Percentage

8
7

76

Tast/Quality Easy Availability Packing Design Advertisements

39 | P a g e
Major types of milks available in the market:
Type of milk Energy value( calories) Fat Content(%)
Whole Milk 487 6.0
Toned Milk 387 3.0
Low fat Milk 270 1.0
Skimmed Milk 194 0.1
Homogenized Milk All fat spread eventually

Chart Title

500
450
400
350
300
250
200
150
100
50
0
Whole Milk Toned Milk Low Fat Milk Skimmed Milk Homogenized
Milk

Energy value Fat content Column1

Specify the milk products which customers are selling

Milk 47%
Curd 15%
Butter milk 10%
Badam milk 13%
Lasssi 5%

40 | P a g e
 Percentage

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Milk Curd Butter Milk Badam Milk Lassi

Percentage

The sales analysis of various Dairy products shows that47% of customers

buying milk, 15% of customer buying curd, 10% of customers buying
buttermilk, 15% of customers buying badam milk and 5% of customers buying
Lassi and other products.

Cold Chain facilities

Yes 88%
No 12%

Sales

no, 12, 12%

Yes no
Yes, 88, 88%

41 | P a g e
From the above it is evident that 88% of Retailers have cold chain facilities and
12% Retailers have no cold chain facilities.

Placing an order for the stock

Over the phone 39%
Sending a person 27%
Through a sales vehicle 22%
Representative of Vd, Collects the 12%
indent

Percentage

12%

39%
22% Over the Phone
Sending a person
Through sales vehicles
27% Collects the indent

From the above it is evident that 12% of retailers say that Representative of
Visakha dairy collects the indent, while 27% send a person and 22% through
sales vehicle and only 39% over the phone.
How fast customer get the stock
Same day 52%
Immediate receipt of the day 23%
Next day 19%
After one day 4%
After two days 2%

42 | P a g e
 Percentage

AfterAfter
one two
day days
Next day 4% 2%
19%

Same day
52%
Immediate receipt of
the day
23%

Same day Immediate receipt of the day Next day After one day After two days

From the above it is evident that 52% of retailers say that they get stock on
same day while 23% retailers say immediate. Receipt of the order, 19% says
next day and 4% say that after 1 day and 2% after two days.
How often company salesman visits your shop to take Dairy parlour items.

Sales
Once in a month
Once in 15days

Once in a week

Once in a week Once in 15days Once in a month

87% shopkeepers answered that every company salesman comes once in a week
to take up the order of Visakha dairy parlour products. Some small shops

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owners’ answered that salesmen goes once in a month to their shops to take up
the order.
From where do Customer prefer to buy Dairy products
Stores Percentage
Nearby provision store 54
Shopping mall 14
Nearby supermarket 19
Our own provision store 4
Visakha dairy outlets 6
Shops 3

Percentage

4
6 3

19
54

14

Near by provison store Shopping mall nearyby supermarket

Our own provision store Visakha dairy outlets Shops

Almost 54 % responded that they purchase dairy products from nearby

provision store.

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CHAPTER-5: Finding and Recommendations
The results from the analysis of the data collected on the various aspects of
consumer satisfaction towards the Visakha dairy products during the field
surveys can be summarized as follows:
1. Visakha dairy is the dominating milk brand in Andhra and Telangana
Region.
2. The most important attribute that motivates a customer to purchase a
brand of milk was found out to be quality followed by price, availability,
retailers and others in order of influencing strength.
3. The customers are satisfied with the price, packaging and thickness
attributes of the Visakha dairy while the other dimensions like taste,
smell, spoilage rate and availability are also satisfactory.
4. The most preferred type of milk variety among the Visakha dairy
was found out to be standard milk followed by full cream and toned milk.
The market share captured by the Visakha dairy milk products amounts to about
the total market of milk in many states.
Consistent Hygiene Practices: Visakha dairy has been continuously
implementing regular hygiene audits and training sessions to ensure that
cleanliness standards are consistently met.
Product Diversification: Visakha dairy parlour diversifying product offerings
based on local preferences, including organic or specialty dairy products.
Marketing and Promotion: Successful parlours invested in marketing efforts,
such as social media campaigns and collaborations with local businesses. This
significantly impacted footfall and customer engagement.
Customer Engagement: Visakha dairy has been Engaging with customers
through social media platforms, loyalty programs, and feedback mechanisms to
understand their needs better. Customer preferences varied widely, with some
customers valuing organic or locally sourced products, while others were more
price-sensitive. Understanding these preferences helped certain parlors tailor
their offerings effectively.
Quality Control: Visakha dairy focused on rigorous quality control measures to
ensure that the dairy products meet or exceed industry standards consistently.
Staff Empowerment: It has been Investing in training programs to enhance staff
knowledge about dairy products, customer service, and handling customer
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queries effectively. parlours that invested in training their staff on product
knowledge and customer service witnessed increased customer satisfaction and
repeat business.

Collaborations: Visakha dairy Explore partnerships with local businesses, such

as cafes or bakeries, to cross-promote products and increase visibility.
Remember that a comprehensive market analysis requires thorough research,
including surveys, interviews, and data collection. Given the dynamic nature of
the food industry, staying updated with the latest market trends and consumer
preferences is crucial for long-term success. It's advisable to consult with
industry experts, business advisors, or market research firms to ensure your
analysis is accurate and insightful.
Limitations:
1. Sample Size: The findings and recommendations are based on
observations from a limited number of dairy parlors and may not fully
represent the entire industry of other states as well as same state.
2. Time Constraints: The study might not have captured long-term trends,
as the observations were conducted over a limited period.
3. Location Specificity: The findings and recommendations could be
influenced by the specific geographic location of the parlors and might
not be universally applicable.
4. Economic Factors: Economic fluctuations and market conditions could
impact the feasibility of some recommendations.
5. Regulatory Changes: Regulatory changes in the dairy industry could
affect the implementation of certain recommendations.
6. Customer Behavior: Customer preferences and behaviors can change
rapidly, making it challenging to predict long-term trends accurately.
7. External Factors: Factors such as seasonality, local events, and
competition were not deeply explored but could significantly influence
parlors' performance.
It's important to tailor the findings, conclusions, recommendations, and
limitations to the specific context of the dairy parlors under study.

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Recommendations:
It was observed that majority of the people are buying the milk from milk
booths. So its better to improve the services to the customers in milk booths.
Most of the customers were using half liter per day, very few customers were
using more than one liter of milk per day. From research we find that majority
of the people were buying the milk for Rs 70 per liter. So its better to improve
the production of milk for Rs. 70 in order to satisfy. Out of 150 samples, all the
people were aware of Visakha Dairy. Next to Visakha Dairy was the well known
brand. So we find that Visakha Dairy was a well-known and a notified brand.
Among all the brands of milk products maximum people were using Visakha
Dairy products. After this Heritage was the well-known and competitive brand
for Visakha Dairy. In order to maintain its market shares Visakha Dairy. In order
to maintain its market share Visakha Dairy has to maintain its quality.
Taste/quality was one of the factors the customers to buy the particular brand.
Easy availability and advertisement were also one of the factors to buy the
particular brand products. The market survey conducted by me has reveled
that most of the people were aware of Visakha Dairy milk and milk products.
One of the advertising media followed by the Visakha Dairy was paintings. This
has occupied a great position in crating awareness of the Visakha Dairy brand.
So it’s necessary to take care on paintings. Addition to these banners were also
playing an importbnt role an important role in awareness brand. The role of
newspapers, hording, pamphlets were very less.
Summary
Inspire of all the above in adequacies, which are highlighted in the suggestions
the Visakha dairy has a good brand image and brand loyalty among the
customers. All the employees are target-oriented in their respective fields.
They created a congenial working environment and working with co-ordination
to achieve the ultimate targets of the Visakha dairy. The organization should
motivate its commission agent to the almost possible extent to it. It has to
develop its promotion activities. New methods of advertising i.e. using the
media of advertising more efficiently and innovatively should be done.
Customers should be made aware of the product mix of visakha dairy and
other products, which they are selling.

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CONCLUSION:

Running a successful dairy parlor requires a combination of factors, including

maintaining high standards of hygiene, focusing on product quality,
understanding customer preferences, effective marketing, and continuous
staff training. Balancing these aspects ensures customer satisfaction and
business sustainability. This company proves that a major amount of work
towards developing an effective and efficient performance appraisal system has
not been accomplished to the fullest. It seems that the organization is genuinely
interested in improving the efficiency and utility of performance appraisal
system to succeed in today’s dynamic environment. Visakha dairy has been
developing to ensure the welfare of farmers, the company also established a
Training Centre and imparted training to farmers in the areas of clean milk
programme, Nutritional aspects, Fodder requirements and Animal Health
Care. Attaching importance to animal health, Visakha Dairy established 633
Veterinary Health Centers with required infrastructure, staff and supplied
veterinary medicines at subsidy rates. Necessary Infrastructure to improve
breed development through Artificial Insemination with successful crossbreed
semen is imported from National Dairy Development Board.

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CHAPTER 6: Questionnaire Prepared

Questionnaire to the customers

Name:
Number of family members:
Occupation:
Questions:
1)Which Brand of the milk are you using?
a) Visakha dairy b) Heritage c) Vijaya d) Dodla dairy e) Amul
2) Are you aware of the variety of products of visakha
dairy? If yes specify
a) Milk b) Ghee c) Doodh pedh d) Lassie e) Butter milk f) Milk powder
3) whi ch of t he pr oducts a r e you u sing r eg ula r ly?
a) Milk b) Ghee c) Doodh pedh d) Lassie e) Butter milk f) Milk powder
4) What do you feel about the quality of the milk/milk
product of visakha dairy?
a) Good b) satisfactory c)Low
5) H ow would you a va ila bility of pr oducts of vcd?
a) Good b) satisfactory c)Low
6) Have you come across of vcd?
a) Hoardings b) TV c. news-paper d) painting e) sign boards f) Expiations

7) Do you thing that any schemes are require to increase sales?

If yes, any recommendation.
8) Do y o u t h i n k t h e a d s a r e h a v i n g r e c a l l r a t e ?
a) Yes b) No

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9) should more information be mentioned in advertising?
a) Yes b) No
10) how much quantity of milk do you use daily?
a) 1/2 liters b. 1 liters c. 1 liters to 2 liters d. 2 liters to 3 liters
11) Which brand do you purchase regularly?
a) Local vendors b) Amul c) Vijaya milk d) Heritage e) Visakha milk
12) which factors do you c onsider t o purchase milk?
a) Quality b) Price c) packing d) easy availability e) Timely availability
13) Do you with visakha dairy to introduce any new product?

14. Are you satisfied with the services offered by the

Visakha dairy?
A) yes B) no
15) Any complaints
a) Shortage in quantity b) Door delivery C) Spoilage d) leakage e) Booth agents

16) Any suggestions to Visakha dairy?

17) Who is the decision maker in your family for purchase of Dairy products?
a) Grandmother b) Mother c) Wife d) Grandfather e) Father f) Husband g) Other

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Questionnaire to The Booth Agents
Name:
Place:
Booth Number:
Questions:
1) Which brand of milk are you selling?
a) Visakha dairy b) dolphin c) heritage d) City milk
2) what are the products you are selling?
a) Milk b) ghee c) doodh peda d) lassi e) buttermilk f) Milk powder

3) quantity of sales of milk?

Brand Morning Evening

4) Are you facing any problem with company regarding?

a) Leakage b) Less quantity c) Spoiling d) Receiving Order in time

5) Which company Dairy products customers demand the most?

a) Visakha Dairy b) Vijaya dairy c) Heritage d) Amul e) Dodla dairy

6) Price margin shared by companies?

a) 5-10% b) 10-15% c) 15-20% d) 20-25%

7) How many people demand?

a)5-10% b) 10-15% c) 15-20% d) 20-25%

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8) Any other information regarding if you want to share about the local milk
product suppliers (like sales distribution network or margins on MRP or order
delivery or credit period)?

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