A

PROJRCT REPORT
ON

“STUDY OF CONSUMER PREFERENCE AND

BUYING BEHAVIOR TOWARDS MILK IN
MALEGAON WITH RESPECT TO MORGAN
MILK & DAIRY”AT
MORGAN MILK & DAIRY INDUSTRIES

BY
NIKHIL ARVIND BHOSALE
UNDER THE GUIDANCE OF
PROF.V.S.KHAIR TO
SAVITRIBHAI PHULE PUNE UNIVERSITY
IN PARTIAL FULFILLEMENT OF THE
REQUIREMENT FOR
THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION

Dr. B.V. Hiray College Of Management and

Research Centre, Malegaon
2022-2023
1
EXECUTIVE SUMMARY

The dairy industry plays an important role in the socio-economic

development of India. The dairy industry in India is instrumental in providing
cheap nutritional food to the vast population of India and also generates huge
employment opportunities for people in rural places. The Department of
Animal Husbandry, Dairying, and Fisheries. which falls under the central
Ministry of Agriculture, is responsible for all the matters relating to dairy
development in the country. This department provides advice to the state
governments and Union Territories in formulating programmes and policies
for dairy development. It also looks after all the matters relating to production
and preservation of livestock farms (cand sheep). Tw keep focus on the dairy
industry a premier institution known as the National Dairy Development
Board was established. This institution is a statutory bods that was
established in 1987. The main aim to set up the board was to accelerate the
pace of dairy development in the country and attract new investments. 13%
of the total production of the milk is contributed by India. The large
vegetarian sector of the India feed upon the dairy products of India. This part
of the industry has helped the India economy in better possible ways. Some
of the glaring problems of the economy are dealt with much ease.The
unemployment and the rates of poverty have diminished as this sector has
provided ample scope to these fields. The industry has seen rapid growth in
recent vears. The best possible technologies are undertaken and the resources
are used in fullest extent so that the sector reaches the booming phase. India
houses the largest livestock in the world. 50% percent of the buffalo and 20
% the cattle are present in India in respect to world.
The present project titled “Study of consumer preference and buying
behavior towards milk in Malegaon with respect to Morgan dairy.” The
project work was carried under the guidance of Mr. Sanjay Hire, Managing
Director, Morgan Dairy. The project was carried out to assess the factors
responsible for selecting any brand of milk and the buying behaviour of the
consumers. Hence, the objectives of the study were:
1. To study the socio-economic profile of consumers purchasing milk.
2.To know the consumer preference while buying milk.
3.To analyze the factors affecting the consumer buying behavior towards
purchasing of milk.
4. To find out the competitive difference of Morgan with other companies.
2
The study was carried out in the Malegaon City of Maharashtra state.
Considering the nature of the study as well as for obtaining correct
information from the respondent, it was decided to collect information
through semi structured questionnaire prepared with help of available related
literature and research reports. During the study face-to-face conversation
and mall intercept surveys of consumers was conducted with help of semi
structured questionnaire. The data collection with the help of questionnaire
was carried with total 300 consumers selected randomly.

3
ACKNOWLEDGEMENT
Words put on the paper are mere ink but when they have a purpose for
there exist a through behind them. I too have purpose to express my gratitude
towards those individuals without Whose guidance the project would not
have been its Successful termination. Every successful work requires certain
amount of inspiration, motivation, creativity, and guidance.During my
summer project at “Morgan Milk & Dairy Industries” at Malegaon, I got
valuable guidance from various people.
I take this opportunity to express a great sense of gratitude towards
Company's Managing Director, Mr. Sanjay Hire for providing me vital
inputs to co-relate the present project work and hence provide a sound base
to the report structure.
I also want to thank our Director Dr. S.J. Jadhav and the Academic
Coordinator PROF. V.S.KHAIR & all the faculties of Dr.B.V Hiray college
of for their guidance & helpful cooperation to me in sorting out all the
difficulties & also for providing me with the useful information about the
importance of values and ethics in any organization.
A special word of thanks also goes to all the non-teaching staff of my
college and my Friends.

Thank you.

Nikhil A. Bhosale

Place: Malegaon

4
DECLARATION
I hereby declare that this, Project’ Report entitled “STUDY OF
CONSUMER PREFERENCE AND BUYING BEHAVIOR TOWARDS
MILK IN MALEGAON WITH RESPECT TO MORGAN MILK &
DAIRY” at “Morgan Milk & Dairy Industries” Malegaon is an independent
analysis work carried out by me as a part of MBA Curriculum, at Dr. B. V.
Hiray College of Management and Research Centre. Malegaon under the
guidance of Prof. V.S.KHAIR
This is to declare that all my work indulged in completion of this
project report such as research survey is a profound and honest work time.

Nikhil A. Bhosale
Place: Malegaon

5
INDEX
Page
CH.NO CHAPTER TITLE NO.

Executive Summary
1 Introduction (Theoretical Background) 1

PROJECT PROFILE
2
2.1 Objectives of the study 14
2.2 Scope of the study
2.3 Limitation of the study

3 Company/Organizational Profile 17

4 Research Methodology (Statement of Problem,

28
Hypothesis, Research Design )

5 Data Analysis 32

6 Findings And Observations 43

46
7 Suggestions And Recommendations

8 Conclusions 48

9 Bibliography 50

10 Appendix 52

6
List Of Tables
Table Table Title Page
No. No.

1 Branded And Unbranded Milk Consumed 33

2 Milk Consumed 34

3 Brand Consumed 35

4 Time of Procuring Milk 36

5 Source of Milk Procurement 37

6 Average Consumption Of Milk Per Day 38

7 Monthly Expenditure In Milk 39

8 Purpose of Milk Consumption 41

9 Price Of Milk 42

7
CHAPTER -I
INTRODUCTION
(THEOROTICAL BACKGROUND)

8
1.1 INTRODUCTION TO CONDSUMER
AND BUYING BEHAVIOUR:
The term ‘consumer’ means the end user of the product who not only consumes
the product but also gives the feedback to the company. The traditional view point has been to
define consumer strictly in terms of economic goods and services. This position holds the
consumers are potential purchasers of product and services offered for sale.

Consumer Behavior: It may be defined as the decision process and the physical activities
individuals engage in when evaluating, acquiring, using or disposing of goods and services The
Consumer Behavior research goes far beyond the facts of consumer preferences and encompasses
all of the behaviors that consumers display in searching for purchasing, using, evaluating and
disposing of products and services that they expect would satisfy their need. One "official"
definition of consumer behavior is "The study of individuals, groups, or organizations and the
processes they use to select, secure, use, and dispose of products, services, experiences to satisfy
needs and the impacts that these processes have on the consumer and society" Although it is not
necessary to memorize this definition, it brings up some useful points:
• Behaviour occurs either for the individual, or in the context of a group (e.g. friend's
influence what kinds of clothes a person wears) or an organization (people on the job
make decisions as to which products the firm should use).
• Consumer behaviour involves the use and disposal of products as well as the study of
how they are purchased Product use is often of great interest to the marketer, because this
may influence how a product is best positioned or how we can encourage increased
consumption. Since many environmental problems result from product disposal (e.g.,
motor oil being sent into sewage systems to save the recycling fee, or garbage piling up
at landfills) this is also an area of interest.
• Consumer behavior involves services and ideas as well as tangible products.
• The impact of consumer behavior on society is also of relevance. For example. aggressive
marketing of high fat foods, or aggressive marketing of easy credit, may have serious
repercussions for the national health and economy.

Consumer behavior study is based on consumer buying behavior, with the consumer playing
the three distinct roles of user, payer and buyer Research has shown that consumer behavior is
difficult to predict, even for experts in the field.

9
Consumer Preference: It is a concept, used in the social sciences, particularly
economics.It assumes a real or imagined "choice" between alternatives and the
possibility of rank ordering of these alternatives, based on happiness, satisfaction,
gratification, enjoyment utility they provide.
Consumer perference refers to how consumers select goods and services
is relation to factors like taste, preference and individual choices. Factors such as the
consumer's income and price of the goods do not influence the consumer's preferred
products or services.

1.2 GLOBAL DAIRY SCENARIO:-

According to International Dairy Federation (IDF), the worldwide milk

production is growing but at a slower pace than before. The strongest growth can be
seen in Asia notably India and China. India is expected to be the largest milk
producer, followed by the U.S.
Milk production in EU has been sliding down due to number of reasons
like the falling price of domestic milk and the export products in 2007, compared
with high prices of agricultural products. Growth is also not expected in U.S. because
other types of farming have made milk production less attractive.
Milk production in Oceania is largely dependent on weather conditions
and these have been very bad due to severe droughts in last few years

1.3 WORLD PRODUCTION OF MILK:

▪ 13% of the total production of the milk in contributed by India. The large
vegetarian sector of the India feed upon the dairy products of India.

▪ This part of the industry has helped the India economy in better possible ways.
Some of the glaring problems of the economy are dealt with much ease. The
unemployment and the rates of poverty have diminished as this sector has
provided ample scope to these fields.

▪ The industry has seen rapid growth in recent years. The best possible
technologies are undertaken and the resources are used in fullest extent so that
the sector reaches the booming phase.

10
▪ India houses the largest livestock in the world. 50% percent of the buffalo and
20% the cattle are present in India in respect to world.

▪ Moreover the milk and the milk products of India are highly acclaimed in
different parts of the world. It ranks first in producing dairy products in world.
The per capita availability of milk is 253grams/day. The government is trying
hard to increase the growth rate.

1.4 Consumer preference behaviour:

1.4.1 Importance:

1) Increase revenue -The importance of consumer buying behaviour lies in the fact,
that we can improve out sales figures when we study the customers. We can alter
the way we sell our products depending on the ways that customers buy them.

2) Brand equity - Why are brand restructuring or image restructuring exercises done
in top companies? It is with consumer insight that the brand decides it needs to
restructure itself, to change its perception in the mind of people, thereby getting
higher turnovers. This too, can happen when you analyse consumer behaviour.

3) Product portfolio-Continuous observation of consumer behaviour can enable you

in finding gaps in your product portfolia, which can in turn help you launch new
products to the ultimate satisfaction of your customers. Samsung is an excellent of
a company which keeps expanding its product portfolio.

4) Market trends - As the market trend shifts, a consumer analysts will be the first
indicator of the same. The recent shift towards environment friendliness, and
health food is a trend observed even by the likes of McDonalds who are bring
healthier food to their calorie loaded Menu.

11
5) Segmentation and targeting -Your current customers are a clear indication of who
your future customers are going to be. If my current customers are 50% impulsive,
then the future customers too will be impulsive. If BMW’s current customers are
with an income of above 40 lakhs a year, then its future customers will also be
with the same income. Segmentation and targeting becomes easier when you are
observing consumer behaviour.

6) Forecasting-Whether it be demand forecasting or sales forecasting, both of them

are possible and therein lies the importance of consumer buying behaviour. The
company will not waste it resources for a product which is going to sell in
summers, because the company knows that the customers are not going to buy it
in winters. Hence by analysing consumer buying behaviour, the company has
saved warehousing costs, manufacturing costs and marketing costs as well. In
essence, forecasting as well as proper utilization of resources is achieved

7) Competitive analysis - One of the most important reasons to study consumer

behaviour is to find out which competitor's products the customer is buying and
WHY? What are the attributes and the features that the customer is valuing above
your company? And can you cover those gaps to take away these customers from
competition? All this can be answered only by studying consumer buying
behaviour

1.4.2 Factors Influencing Consumer Behaviour

The marketers try to understand the actions of the consumers in the marketplace and
the underlying motives for such actions. These motives are the factors that influence
the consumer behaviour. These are:

12
Psychological Factors: The human psychology plays a crucial role in designing
the consumer preferences and likes or dislikes for a particular product and
services. Some of the important psychological factors are:
▪ Motivation
▪ Perception
▪ Learning

▪ Atitudes and Beliefs

Social Factors: The human beings live in a complex social environment
wherein they are surrounded by several people who have different buying
behaviours. Since the man is a social animal who likes to be acceptable by all
tries to imitate the behaviours that are socially acceptable. Hence, the social
factors influence the buying behaviour of an individual to a great extent Some
of the social factors are:
▪ Family
▪ Reference Groups
▪ Roles and status
Cultural Factors: It is believed that an individual learns the set of values,
perceptions. behaviours, and preferences at a very early stage of his childhood
from the people especially, the family and the other key institutions which
were around during his developmental stage Thus, the behavioural patterns are
developed from the culture where he or she is brought up Several cultural
factors are:
▪ Culture
▪ Subculture
▪ Social Class
Personal Factors: There are several factors personal to the individuals that
influence their buying decisions Some of them are:
▪ Age
▪ Income
▪ Occupation

▪ Lifestyle

13
Economic Factors: The last but not the least is the economic factors which
have a significant influence on the buying decision of an individual. These are:
▪ Personal Income
▪ Family Income
▪ Income Expectations
▪ Consumer Credit
▪ Liquid Assets of the Consumer
▪ Savings
These are some of the underlying factors that influence the consumer
behaviour, and the marketer must keep these in mind, so that appropriate
strategic marketing decision is made.

1.4.3 Features of consumer behaviour

Consumer behaviour is the part of human behaviour. This cannot be separated.
Human behaviour decides what to buy ,when to buy etc. This is unpredictable
in nature. We cannot say that what an individual is going to do in the next
moment. Based on the past behavioural pattern one can at least estimate like
the past he might behave
Learning the consumer is difficult and complex as it involves the study of
human beings Each individual behaves differently when he is placed at
different situations. Every day is lesson from each and every individual while
we learn the consumer behaviour. Today one may purchase a product because
of as smell, tomorrow it may vary and he will purchase another due to some
another reason.
Consumer behaviour is dynamic. A consumer's behaviour is always changing
in nature. The taste and preference of the people vary. According to that
consumers behave differently. As the modem world changes the consumer’s
behaving pattern also changes.
Consumer behaviour is influenced by psychological, social and physical
factors. A consumer may be loyal with a product due to its status values
Another may stick with a product due to its economy in price .understanding
these factors by a marketer is crucial before placing the product to the
consumers.

14
Study of consumer behaviour is crucial for marketers. Before producing a
product of launching a product, he has to go through a clear analysis of the
consumer behaviour. If the people or prospects reject the product, he has to
modify it.

Consumers behaviour is a continuous process as it invokes the process starts

before the buying and continuing after purchasing. Before buying there will
be high confusions and expectations about the product. After buying it, if
the buyer is satisfied with the product he shows a positive behaviour,
otherwise negative.

15
Table No.1.1.1:Milk Production In Various Countries

Rank Country Production

1 India 114.4
2 United States 79.3
3 Pakistan 35.2(needs validation)
4 China 32.5
5 Germany 28.5
6 Russia 28.5
7 Brazil 26.2
8 France 24.2
9 New Zealand 17.3
10 United Kingdom 13.9
11 Ukraine 12.2
12 Poland 12
13 Netherlands 11.5
14 Italy 11.0
15 Turkey 10.6
16 Mexico 10.2
17 Australia 9.6
18 Egypt 8.7
19 Argentina 8.5
[Source :NCDFI,The Co-operator ,vol.46(5),pp.249-251(2009)]

16
1.5 GROWTH IN MILK PRODUCTION IN INDIA:

▪ In 1950, the production of milk was 17 million tones.

▪ In 1996, the production of milk increased to 70 million tones.

▪ In 1997, the production of milk was 74.3 million tones.

▪ In 2011-2012 the production of milk, increased to 132 million tones.

▪ The Projected rate of production of milk in 2020 is 240 million tons

▪ However so as to meet the rising demand of the consumers, the production is

expected to rise up to 220-250 million tons by 2020.

▪ If the above figures are achieved, then India would be able to contribute to 30-
35% of world's milk production.

1.6 KEY AREAS ON WHICH THE DAIRY FARMS DEPEND IN INDIA:

Dairy farms depend to a large extent on the factors as discussed below:
a. The competitive nature, the cost of production and the productivity of the animals:
The demands for not only the milk products are on increase but the quality is also
important considerably. Lower the cost of production of the milk the profit would be
more and the competitive market would also get enhanced. Moreover the number of
animals is also to be increased and a better health care also needs to be provided to
them
b. Proper care should be given to the cycle of production, processing and marketing
of the commodities so produced. Proper legal backups are to be taken to increase the
quality so that it can compete and be apt with the international standards
c.The dairy farms must utilize their resources well and make the final products that
come easy of these sources. As India is the leading house of buffalos so it must
concentrate on making much more of Mozzarella cheese and target them to the
consumers in various countries
d.To increase the scope of milk production, proper investments are to be done and
they come in good opportunities in this sector

17
Fig 111 State wise Milk Production in India

[Source: GOL. 2010]

1.7 INDUSTRY SEGMENTS:

▪ Cheese: Cheese sales are growing at 15% per annum

▪ Ice-cream: Sale of Ice-cream is growing

▪ Chocolates: These mark as the 4% of the total sweet confectionary consumed

by the people

▪ Fluid milk: the annual growth rate of fluid milk from 2010-2013 is 6.8%

▪ Some of the other dairy products are like curd, ghee, khoa, powdered milk is
much in demand in India and is widely consumed.

18
1.8 STRUCTURE OF INDIAN DAIRY SECTOR:

[Source FPI report, 2009)

The Indian Dairy Industry is mainly dominated by the unorganized

sector that comprises of private small-scale dairies and the Halwai’s. A very
small portion of the entire production is processed as per the standards.

1.9 DISPOSITION OF INDIAN MILK PRODUCTION:

i) 85% of milk entered the exchange economy found its way into urban areas
cash for rural milk producers.
ii) Out of the total cities and towns in India (3700), only 30% are served by
organized milk distribution network (ISAP, 2008)
iii) Total milk processed is 15% of which 94% is in pouches (Indian Dairyman,
2009)
iv) Informal market sustains poor willingness of customers to pay the extra cost
of formal processing & packaging. Small scale processors (Halwai’s also
buy from informal channel
v) Formal market-Quality control & packaging+trade taxes (Costly to
consumers)
vi) 85% total milk production is marketed directly to consumer (Indian
Dairyman, 2009)
vii) 65% total milk is consumed unpasteurized (2⁄3-rural & 1⁄3urban)
(Indian Dairyman. 2009)

19
TABLE 112 KEY STATISTICS OF INDIAN DAIRY INDUSTRY

(Source: NDDB. 2016-17)

1.10 DAIRY SCENARIO OF MAHARASHTRA: A RETROSPECT:

The study of dairy activity is not complete without taking into account the co-
operative movement in India. Co-operation means working together as a team to
attain a set of objectives. The spirit of villages in India lies completely on the
mechanism of co-operation. In Maharashtra, dairy activity is developed on co-
operative basis. The keen interest of state government and support of farmers are the
main reasons for the co-operative dairy development in Maharashtra. The dairy
activity is now largely based on a three tier system upon which, the primary village
co-operative societies are linked with district union and state federation which are
guided by the national co-operative dairy Federation in India. Maharashtra State
contributes 7% of milk to the total production of the country.

20
1.11 DISTRIBUTION:

a) Ex- Dairy Distributors: These milk their own vehicles to the customers in
the specific areas allotted to them. They operate on commission basis. They
have signed an agreement with Dudh Mahasangh which is to be renewed
annually. This is the major distribution system and over 75% of the milk is
distributed through this system.
They sell milk only through pouches. They must pay the price of milk
before accepting the delivery of milk.

b) Shop Distribution: This system has been designed to ensure in built price
control and as a counter check to the Ex-Dairy Distribution system. in this
case, the shop identified is owned by the party and delivery of packed milk is
undertaken by the Mahasangh. The party must sell at the prescribed price only.
Such shops have been purposefully located in the areas of the Ex- Dairy
Distributors. This helps to ensure supply of milk at the prescribed price to the
customers.

c) Supply to Bulk Customers: Institutional buyers like hotels, canteen, and

hospitals are supplied milk in loose. In this case, the institution must pay
deposit equivalent to the price of milk for 1 1⁄2 months as advance and pay
the bills on monthly basis.

d) Commission Agents: In order to enhance the sale of milk, a new system

called commission agency has been introduced in this system, the party has to
operate purely on contract basis for a specific period and specific quantity.

Dairy

Distributor

Sub-Distributor

Retailer

Consumers

Fig 1.2.1 Distribution Channel

21
CHAPTER -II
PROJECT
PROFILE

22
2.1 OBJECTIVES OF THE STUDY :-
1. To study the socio-economic profile of consumers purchasing milk.
2. To know the consumer preference while buying milk.
3. To analyze the factors affecting the consumer buying behavior towards purchasing
of milk.
4. To find out the competitive difference of Morgan with other companies.

2.2 SCOPE OF THE STUDY:-

❖ The study was allotted by the Morgan Dairy in Malegaon region of
Maharashtra

❖ The study mainly focused on the consumer preference and buying behavior
towards milk. The project work was carried out in Malegaon region by
surveying total 300 consumers

❖ Milk is an important part of the diet in our daily lives for all the age groups. It
consist important nutrients required by the body. People therefore have
different perception towards buying milk and they rate the milk on different
parameters and attributes. Company therefore wants to know the perception of
the consumers towards milk.

❖ This study will be helpful for Morgan Dairy to understand the consumer
preference and buying behavior affecting purchase of milk. This study will also
assist the company to target its milk in an efficient manner to the consumers.
And may help them to build a strong market for their product.
2.3 LIMITATIONS OF THE STUDY:-
1. Adequate efforts have been taken to accomplish the project according to the
objectives, but it was not possible to cover more additional areas and respondents
which would have obviously given better results,
2. The project area covered was Malegaon Taluka, so the outcome of the project 17

23
cannot be applied to other places due to demographic and geographic
differentiation.

3. The project work was required to be completed in 2 months. So there was

limited time available and therefore only limited respondents were included in
study.

4. Many respondents were reluctant in giving feedback and were not interested
in participating in survey.

24
CHAPTER-III
COMPANY
PROFILE

25
3.1 PROFILE OF THE COMPANY:-

1)Name of the company Morgan Milk &Dairy Industries

2)Address of the company 297/2 Dhavaleshwar,(Aghar BK),

Tal:Malegaon Dist:Nashik
Maharashtra(India)-423201

3)Name of the Directors Mr.Sanjay Hire

4)Bankers Bank Of Baroda,Union Bank

5)Tel no. 02554-269479

6)Establishment 2012

7)Industry Type Milk Processing Industry

8)Email Id [email protected]

9)Certification ISO 22000:2005

10)Web Site Morganparivar.com

11)Logo of the company

12)Head-(HR) Mr. Mankar

13)Sector Agri Sector

26
3.2 HISTORY OF THE ORGANIZATION:
Morgan Milk Manufacturers and distributors Milk Powder & daily needed
products to Maharashtra, India and other global markets. Using of the art
technologies and systems we lave developed an unparalleled expertise in
manufacturing finest quality dairy products at our facility on india. Our team of top
professionals uses high grade ingredients and maintains hygienic conditions the set
the differing needs of our customers.

3.3 INDUSTRY PROFILE:

GLOBAL DAIRY SCENARIO
According to International Dairy Federation (IDF), the worldwide milk
production is growing but at a slower pace than before. The strongest growth can be
seen in Asia notably India and China India is expected to be the largest milk
producer. followed by the U.S.
Milk production in EU has been sliding down due to number of reasons like
the falling price of domestic milk and the export products in 2007, compared with
high prices of agricultural products. Growth is also not expected in U.S. because
other types of farming have made milk production less attractive.
Milk production in Oceania is largely dependent on weather conditions and
these have been very bad due to severe droughts in last few years.
3.4 FACTORS LEADING TO SUCCESS OF MORGAN DAIRY:
➢ Hygienic conditions
Milk is processed, packed and stored under hygienic conditions, thereby
avoiding bacterial contamination and multiplication. Milk products are
manufactured under hygienic conditions with strict quality control. In the dairy
plants having ISO 9002 and capital HACCP certification.

➢ Non Conventional Energy Use

➢ Solar Water Heating System

27
Morgan Dairy is using Solar Water Heating system (25000 liters capacity), since
1990, which was commissioned with the assistance of Department of Non-
Conventional Energy sources and Maharashtra Energy Development Agency? The
water heated from ambient to 85°C with the help of solar water heating system, which
is used for boiler as feed water and crate cleaning & general cleaning purpose. This
has resulted into a saving of 200-250 liters of furnace oil per day, with monetary
savings of approximately Rs. 4 Lakhs per annum.

➢ Pollution Control Measures

To improve environment and ecological balance extensive free plantation
programme is undertaken within the Dairy premises, for treating Dairy waste water
Morgan Dairy is using most advanced effluent treatment
Plant based on anaerobic cum aerobic technology, which not only reduces the
cost of treatment by 60-70 percent as compared to conventional aerobic plants but
also produce BIO-GAS, which is being used for generating the electricity.

➢ Quality Improvement and Consumer Satisfaction

By adopting proper plant sanitation and quality control measures, the shelf-life of
Morgan Milk at ambient temp could be improved up to 16-17 Hours The excellent
quality of milk has increased the consumers acceptability and satisfaction, thereby
making Morgan Milk most popular in the market. To prevent market complaints and
to have effective control over milk adulteration in the market, Morgan Dairy has
introduced very effective coding system on milk pouch This gives the details of date
of packing, machine number, filler number. place of packing, etc. on each and every
pouch packed and distributed in the market.
This has helped us in controlling market complaints and to implement effective
corrective measures at Dairy plant to achieve desirable parameters. The system is
found to be very useful and effective in solving marketing and distribution
complaints.

➢ Profitability, Incentives and Promotional Activities

As a result of Productivity Improvement. Effective capacity utilization,

Effective Energy Conservation and cost control measures, Loss Reduction, etc. the
profitability level of MORGAN has increased significantly. During 2003-2004, the
profit is booked as Rs. 2 crores 13 Lakhs. To encourage milk producers and member
milk unions, the incentives of 25 paise per liter (approx. Rs. 656 Crores) was paid
over and above milk procurement price during the year 2003-2004.

28
Total incentives of the tune of Rs 135 Crores were paid to the farmers/member
milk unions by MORGAN, So far, which has helped in Socio-economic upliftment
of the poor farmers in rural areas.

➢ Morgan Brand Equity for Members

Some members of Dudh Mahasangh are having excellent milk products

manufacturing facility with ISO certification. These members shall be manufacturing
products under Morgan Brand name as per the quality standards prescribed by
Morgan Cheese. Morgan Butter, and Morgan Ghee, shall be manufactured and
launched in the national market very soon.

➢ 3.5 DAIRY INDUSTRY IN INDIA: A BRIEF INSIGHT:

The dairy industry plays an important role in the socio-economic development
of India. The dairy industry in India is instrumental in providing cheap nutritional
food to the vast population of India and also generates huge employment
opportunities for people in rural places. The Department of Animal Husbandry,
Dairying and Fisheries, which falls under the central Ministry of Agriculture, is
responsible for all the matters relating to dairy development in the country. This
department provides advice to the state governments and Union Territories in
formulating programmes and policies for dairy development. It also looks after all
the matters relating to production and preservation of livestock farms (cattle and
sheep).

To keep focus on the dairy industry a premier institution known as the National
Dairy Development Board was established. This institution is a statutory body that
was established in 1987. The main aim to set up the hoard was to accelerate the pace
of dairy development in the country and attract new investments. India is a
wonderland for investors looking for investment opportunities in the dairy industry.
The dairy industry holds great potential for investment in India and promises high
returns to the investors.

29
3.6 WORLD PRODUCTION OF MILK:

13% of the total production of the milk is contributed by India. The large
vegetarian sector of the India feed upon the dairy products of India.

This part of the industry has helped the India economy in better possible ways
Some of the glaring problems of the economy are dealt with much case The
unemployment and the rates of poverty have diminished as this sector has provided
ample scope to these fields.

The industry has seen rapid growth in recent years. The best possible
technologies are undertaken and the resources are used in fullest extent so that the
sector reaches the booming phase.

India houses the largest livestock in the world. 50% percent of the buffalo and
20% the cattle are present in India in respect to world.

Moreover, the milk and the milk products of India are highly acclaimed in:
different parts of the world. It ranks first in producing dairy products in world. The
per capita availability of milk is 253grams/day. The government is trying hard to
increase the growth rate.

30
3.7 Organizational Structures:-

M.D

HR
Finance Marketing
Department

Administration Processing Packaging

Department Department Management

31
3.8 PRODUCT IMAGES: -

32
33
3.9 MANPOWER STRENGTH:-

Managing Director 01

Total no. of Managers 09

Total no. of Workers 65

Total no. of Trainee 15

Total no. of Housekeepers 10

Total no. of Manpower Strength 100

Manpower Strength

9%
1%
10%
Workers
Trainee
Housekeepers
15% Managing Director

65% Managers

34
CHAPTER-IV
RESEARCH
METHODOLOGY

35
4.1 MEANING OF RESEARCH:

The very common meaning of research is “A search for knowledge”. Research

is an art of scientific investigation. It is a movement from the known to the unknown.
Research in a voyage of discovery. It is a scientific and systematic search for
pertinent information on a specific topic. It is an organic enquiry. Research is process
of finding answer to the questions through the application of the scientific method. It
is systematic or intensive study directed towards more complete knowledge of
subject studied. Research is one which always starts with a question or a problem.
Its purpose is to find out the answer to question.

4.2 DEFINITIONS OF RESEARCH METHODOLOGY:

• According to Clifford Woddy:
“The process which includes defining and redefining problems, formulating
hypothesis or suggested solution, collecting, organizing and evaluating data,
making deductions and reaching conclusions to determine whether fit the
formulating hypothesis."
• According to Clover and Balsley:
"Research is the process of systematically obtaining accurate answers to
significant and pertinent questions by the use of the scientific method gathering
and interpreting information”.
• According to John W. Best:
"Research is the systematic and objective analysis of controlled observations that
may lend to development of generalization, principles or theories, resulting in
prediction and perhaps ultimate control of events."
• According to D. Slesinger and M. Stephenson:
"Research is the manipulation of things, concepts of symbols for the purpose of
generalizing to extend, correct or verify knowledge, whether that knowledge aids
in construction of theory or in the practice of an art”.

36
• According to Webster's Twentieth Century Dictionary:
"Research in the careful, patient ,systematic, diligent inquiry or examination in some
field of knowledge undertaken to establish facts of principles”.

4.3 DATA COLLECTION:

Data collection is the process of gathering the specific information used to answer
the research question. Data collection depends on the research design There are a
number of issues associated with data collection, including the use of Primary of
Secondary Data, Survey Design Sampling, Survey Administration, and increasing
response rates.

1) Primary Data:
“Data that is collected for the specific purpose at hand is called as primary data “.It
is customized according to the needs of the researcher and focuses exclusively on the
current research problem. The collection of the primary data is costly and time
Consuming .It calls for the greater planning and co-ordination.
Data were collected from respondents with the help of a semi structured
questionnaire Also discussions were made with the Managers and various executive
in the company premises to firm up the findings originated from the analysis of this
data.

2) Secondary Data:
"Secondary data may be defined so the data that has been collected earlier for some
purpose other than the purpose of the present study”. Any data that is available prior
to the commencement of the research project is secondary data: therefore, secondary
data is also called as historical data. Secondary sources of the data provide wealth of
information to the researcher. It often obviates the need of the primary data collection
and saves the valuable time, effort and money Even where the subsequent primary
data collection is required, an analysis of the secondary data enlightens the researcher
regarding many aspects of the study.

37
Sources of the Secondary data:
➢ Magazines
➢ Manuals
➢ Company records
➢ Company websites
➢ Reference books
➢ Internet

4.4 Sample Design:

Convenience sampling methods was used to survey the milk consumers.

Convenience sampling method is a type of non-probability sampling which
involves the sample being drawn from a part of population close to hand. That is ,a
sample population selected because it is readily available and convenient. The
advantages of this type of sampling are the availability and quickness with which
data can be gathered. The disadvantages are the risk that the sample might not
represent the population as a whole ,and it might be biased by volunteers.

4.5 SAMPLE SIZE:-

A sample size of total 300 consumers were surveyed from entire study area. Data is
collected in 2 months & respondents are chosen randomly.

38
CHAPTER-V
DATA
ANALYSIS

39
1.Do you purchase branded milk?

Branded/Unbranded Milk

Branded Milk No. of %

Respondents
Branded 216 72
Unbranded 84 28
Total 300 100

Branded/Unbranded milk consumed

28%

Branded
Unbranded

72%

Interpretation:
From the figure, it can be said that 72% respondents purchase branded milk
And 28% purchase loose milk.

40
2.Which milk do you consume?

Milk Consumed

Milk Consumed No. of %

Respondents
Cow milk 108 36
Buffalo milk 192 64
Total 300 100

Milk consumed

36%
Cow milk
Buffalo milk
64%

Interpretation:
From the figure, it can be stated that 64% respondents prefer buffalo milk
And 36% prefer Cow milk. This is one of the reasons of lost in sales of Morgan,
because Morgan dairy is only Manufacturing cow milk.

41
3.Which brand do you normally prefer?

Brand Consumed

Brand No. of %
Respondents
Morgan 33 11
Amul 80 27
Gokul 61 20
Aarey 36 12
Others 6 2
Loose Milk 84 28
Total 300 100

No. of Respondents

11% Morgan
28%
Amul
Gokul
27%
Aarey
2%
Others
12%
Loose Milk
20%

Brand Consumed
Interpretation:
From the above figure, it can be concluded that majority of the respondents
consume Amul (27%) and Gokul(20%), Followed by Aarey(12%) and Morgan(11%)
very small percentages of respondents consume other brands like Mother Dairy
,Waarna, Maauli and Krishna.

42
4.What is the time of purchasing milk?

Time of purchasing milk

Time of Purchasing No. of %

Respondents
Morning 149 50
Afternoon 40 13
Evening 105 35
Morning +Evening 6 2
Total 300 100

Time of purchasing milk

2%

Morning
35%
Afternoon
50%
Evening
Morning+Eveninng

13%

Brand Consumed
Interpretation:
50% respondents purchase milk in the Morning.13% in the afternoon and 35%
in the evening. Only 2% respondents purchase milk two times in a day. Therefore,
the dairy must try to provide milk on time to the dealers so that it reaches the
consumers at the proper time.

43
5.What is the source of daily milk procurement?

Source of milk procurement

Source of procurement No. of %
Respondents
Agents 94 31
Cow sheds 108 36
Retailers 98 33
Total 300 100

Source of procurement

33% 31%
Agents
Cow sheds
Retailers

36%

Brand Consumed
Interpretation:
It has been seen that 36% milk was procured fromcowsheds,32% by the milk
agents and 33% by the retailers. So, the retailers and milk agents together dominate
the market. Therefore, steps must be taken to convenience the agents and retailers to
enhance the sales by providing them with better incentives and schemes.

44
5.What is the source of daily milk procurement?

Source of milk procurement

Source of procurement No. of %
Respondents
Agents 94 31
Cow sheds 108 36
Retailers 98 33
Total 300 100

Source of procurement

33% 31%
Agents
Cow sheds
Retailers

36%

Interpretation:
It has been seen that 36% milk was procured fromcowsheds,32% by the milk
agents and 33% by the retailers. So, the retailers and milk agents together dominate
the market. Therefore, steps must be taken to convenience the agents and retailers to
enhance the sales by providing them with better incentives and schemes.

45
6.What is the average consumption of milk per day?

Average consumption of milk per day

Daily consumption No. of %
Respondents
>1 liter 64 21
1-2 liters 151 50
2-4 liters 65 22
<4 liters 20 7
Total 300 100

Average consumption of milk per day

7%
21%
>1 liter
22%
1-2 liter
2-4 liter
<4 liter

50%

Interpretation:
From the above figure, it can be inferred that 50% respondents consume 1-2
liters of milk per day ,21% respondents consume less than 1liters,22% consume less
than 2-4 liters and 7% consume more than 4 liters every day.

46
7.Monthly Expenditure Incurred in milk?

Monthly Expenditure Incurred in milk

Monthly Expenditure No. of %
Incurred in milk Respondents
>500 54 18
500-1000 149 49
1000-2000 47 16
<2000 50 17
Total 300 100

Monthly Expenditure Incurred in milk

17% 18%
>500
500-1000
16%
1000-2000
<2000

49%

Interpretation:
49% respondents spends Rupees 500-1000 monthly,16%respondents spend
rupees 1000-2000,and 17%respondents spends more than rupees 2000 every month.

47
8.Rate the factors that influence you to buy milk?

Factors influence the purchase of milk

Sr.no Parameters 1 2 3 4 5 Cumulative Rank
Score
1 Advertisement 50 102 64 51 33 815 6
(50) (204) (192) (204) (165)
2 Ease of 8 8 27 106 151 1284 2
Availability (8) (16) (81) (424) (755)
3 Local Product 18 51 123 68 40 965 4
(18) (102) (269) (276) (200)
4 Brand Image 22 70 85 74 49 958 5
(22) (140) (255) (296) (245)
5 Nutritional 1 2 23 53 221 1391 1
Factors (1) (4) (69) (212) (1105)
6 Worth of 26 30 88 98 58 1065 3
Month (26) (60) (297) (392) (290)

Interpretation:
From the above graph, it can be concluded that respondents consider
nutritional factor as the most important parameter to influence them for purchasing
milk, followed by ease of availability (2nd), word of mouth (3rd), local product (4rth),
brand image (5th) and lastly advertisement (6th).

48
9.For what purpose do you consume milk?

Purpose of milk consumption

Purpose of milk No. of %
consumption Respondents
Drinking 49 16
Tea and Coffee 83 28
Curd and Value-added 13 4
products
Multipurpose 155 52
Total 300 100

Purpose of milk consumption

16%
Drinking
Tea and Coffee
52% Curd and value added products
28%
Multipurpose

4%

Interpretation:
From the figure, it can be said that 52% of respondents use milk for multiple
purpose,28% respondents prepare tea and coffee, 16% drink it and only 4% prepare
curd and value-added products. Morgan Dairy has different variants of milk (Morgan
Diamond for preparing tea and Morgan Annapurna for preparation of Value-added
products).

49
10.How do you rate the price of milk that you consume compared to others?

Table No. 4.3.4: Price of milk

Price of milk No. of %
Respondents
High 38 13
Moderate 74 25
Competitive 69 23
Affordable 101 34
Low 18 6
Total 300 100

Price of milk compared to other brands

6% 13%
High
Moderate
33%
25% Competitive
Affordable
Low
23%

Interpretation:
From above graph, it can be said that 34% respondents consider the price of
milk affordable. 25% consider it to be moderate. 23% find the prices competitive,
13% tind it high and 6% find it low. Morgan charges Rs. 2/- extra then the current
market rates for all the other milk brands, therefore, consumers are finding it
expensive.

50
CHAPTER – VI
FINDINGS
AND
OBSERVATIONS

51
6.1 FINDINGS:

• Out of the total respondents surveyed, 64% were females and remaining 36%
were males.
• Majority of respondents (40%) belonged to the age group of 25-40, followed
by 27% respondents in the age group of 40-50, 22% in the age group of 18-40
and remaining 10% belonged to age group of above 50.
• A large portion of respondents (30%) belonged to service sector, followed by
27% homemakers. 25% running their own business and 18% students.
• The survey included 40% respondents who were under graduates, 38%
graduates and 22% postgraduates.
• Nearly, 40% respondents had 4-5 family members. 35% respondents had 3-4
family members, 13% had less than 3 members and 12% respondents had
more than 5 members. Therefore, it can be said that the study area contains a
lot of nuclear families rather than joint families.
• Majority of the respondents (47%) were married with dependent children,
26% respondents were married with independent children, 16% were newly
married with no children and 11% were bachelors.
• 41% respondents have an income ranging from Rupees 20000-30000, 26%
respondents have an income of more than Rupees 30000, 19% respondents
have an income of Rupees 10000-20000, and 14% respondents have an
income of less than rupees 10,000.
• Most of the respondents purchase branded milk (72%) whereas only (28%)
respondents consume loose milk. Hence, there are chances for Morgan Dairy
to expand into the market.
• Majority of the respondents (64%) consume buffalo milk and (36%) consume
cow milk. Therefore, Morgan Dairy shall enter buffalo milk segment also.
• Out of all the brands available. 27% respondents consume Amul, 20%
respondents consume Gokul, 12% consume Aarey, followed by 11%

52
respondents consuming Morgan and 2% respondents consuming other brands
like Waarna, Maauli and Mother Dairy.
• Half of the respondents (50%) procure milk during morning, 35% procure
during evening, 139% procure in afternoon and 2% respondents consume
twice in a day.

53
CHAPTER -VII
SUGGESTIONS

54
7.1 SUGGESTIONS:

1. Morgan milk is cow milk, but since majority of the respondents in the study
area consume buffalo milk, the company shall take steps towards diverting into
buffalo milk.
2. The packaged milk, Annapurna is mainly targeted for the consumers who
make value added products, and Tej is targeted for tea makers. therefore, the
company should promote this differentiation by making it the USP.
3. Since the other competitors have established themselves very well in the study
Area. Morgan shall also differentiate its product and create a strong USP.
Since, Morgan is producing only cow milk, it should try to deliver the benefits
of cow milk.
4. The price of Morgan milk is higher than all the other milk brands available in
the market by Rs. 2/-. Therefore, Morgan should try to decrease the price by
creating strong back-end supply and reducing the cost of production.
5. Company should try and distribute milk to all the areas including the rural parts
of the study area since the competitors like AMUL have a strong base in rural
areas too.
6. To create top of mind awareness, company can also enter into retail sector and
do the retailing of milk and various value-added products.
7. Promotion can be done to communicate the product in the mind of consumers.
8. Advertisements can be given in newspapers, T.V. etc.
9. Strong brand image can be created by giving a tag line to the product or
endorsing the product by any stars or players.
10. Below the line promotional activities like creative contests, quiz and other
sports contest can be organized in schools for creating awareness and brand
promotion. Award functions felicitating meritorious students can help for
creating awareness among students and parents.
11. For better market penetration, company should introduce small trial pack of
200 ml. Use of trial pack will induce consumers to switch their brand of milk.

55
CHAPTER -VIII
CONCLUSIONS

56
8.1 CONCLUSION:
The dairy industry plays an important role in Socio-economic development of
India. The dairy industry in India is instrumental in providing cheap nutritional food
to the vast population of India and also generates huge employment opportunities for
people in rural places.
Milk as we all know, is an important ingredient in our day-to-day lives.
providing us with essential nutrients. People use milk for various purposes like
drinking, making tea and coffee or for preparation of value-added products like
cheese and paneer. Various dairies are therefore procuring milk from the rural India.
processing it in various forms and making it available to the consumers. There also
exists an informal channel of milk distribution where the milk is sold in loose form
without being processed.
Mostly, bovine milk is consumed by the people in urban areas. Various brands
have come up and are facing cut throat competition with each other. In such a
scenario. it is important to create a USP and stand out from the competitors. It has
been seen that, nutritional value and quality are the most important factors that affect
the buying behaviour of milk; therefore, emphasis shall be laid on these two
parameters while promoting the milk brand. Price of the milk should be decided in
relation to competitor’s price.

57
CHAPTER -IX
BIBLIOGRAPHY

58
1)BIBLIOGRAPHY:-

Name of the Book Author Publication

Marketing Philip Kotler Dorling Kindersley
Management Pvt.Ltd
Marketing Ramaswamy -
Mananagement
Journal of Vacation Yuksel A.& Yuksel F. Sage Publication
Marketing
Research Methodology C. R. Kothari New Age Techno press

2) WEBLIOGRAPHY:

1. SEARCH ENGINE:

Google

2. WEBSITES:
• www.books.google.co.in
• www.managementparadise.com
• www.managementstudyguide.com

59
CHAPTER -X
APPENDIX

60
QUESTIONNAIRES
1.Name of respondent:_________________________________________________________________

2.Contact Number:___________________________________________________________________

3.Gender: I. Male II. Female

4. Age:

I. 18-25 II. 26-40 III. 41-50 IV. More than 50

5.Occupation:

I. Home Maker II. Business III. Service IV. Student

6.Qualification:

I. Under Graduate II. Graduate III. Post Graduate

7.Number of Family Members:

I. Less than 3 II.3-4 III.4-5 IV. More than 5

8. Family life cycle stage:

I. Bachelor

II. Newly married without children

III. Married with dependent children

IV. Married with independent children

9. Monthly Income (In Rs.)

I. Less than 10000

II. Less than 2000

III. 20000-30000

IV. More than 30000

10.Do you purchase branded milk ?

I. Yes II. No

11.Which milk do you consume?

I. Cow milk II. Buffalo Milk III. Others

61
12.Which brand do you normally prefer?

I. Morgan II. Amul III. Gokul IV. Aarey V. Others

13.When is the time for purchasing milk?

I. Early morning II. Afternoon III. Evening

14.What is the source of daily milk procurement?

I. Agents

II. Door Delivery

III. Retailers

Iv. Others Please Specify:___________________

15. What is the average consumption of milk per day?

I. Less than 1 liter

II. 1-2 liters

III. 2-4 liters

IV. More than 4 liters

16. Monthly expenditure incurred for milk?

I. <500

II. Rs.500-1000

III. Rs.1000-1500

IV. >1500

17. Rate the factors that influence you to buy Milk?

(1= not at all important, 2- somewhat not important, 3-neutral, 4 somewhat important, 5= extremely
important)

Parameters 1 2 3 4 5
i. Advertisement
ii.Brand images
iii.Local product
iv.Word of mouth
v. Ease of Availability
vi. Nutritional Factors
18. For what purpose do you purchase milk?

i. For drinking

ii. For tea and coffee

iii. For curd & value added products

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iv. Multipurpose

19. During festival, consumption of milk/day:

i 1-2 liters

ii. 2-5 liters

iii. More than 5 liters

20. Do you know about Morgan Milk?

i. Yes ii. No

21. How do you know about Morgan Milk?

i. TV Advertisement

ii. Newspaper

iii. Friends and relatives

iv. Retailers

v. Others Please Specify________________________________

22. Rate the following factors while purchasing Milk?

(1=extremely not important, 2=somewhat not important, 3=neutral, 4=somewhat important,

5=extremely important)

Parameters 1 2 3 4 5

i. Taste

ii. Freshness

iii. Quality

iv. Packaging

v. Shelf life

vi. Availability
vii. Thickness
viii. Product Range

ix. Design and Appearance

x. After sales Support

63
23. How do you rate the price of milk that you consume compared to others?

i. High

ii. Moderate

iii. Competitive

iv. Affordable

v. Low

24. Compare the various milk brands on different parameters?

(1 good, 2-neutral, 3-poor)

Parameters Amul Morgan Aarey

i.Quality
ii.Thickness
iii.Packaging
iv.Availability
v.Taste

25. If your milk brand is not available in vicinity, will you wait or shift to other brands?

i.Wait ii.Shift

26. Which factors according to you shall improve in brand which you consume?

i.Taste ii.consistency iii.Packaging

iv.Contents v.Nothing

Thank You!

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