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Final SIP Report A REPORT ON “A STUDY OF PERFORMANCE AND GROWTH OF SARAS DAIRY” BY SMITA CHOUDHARY Submitted on: 24 th September 2007 SARAS DAIRY, ALWAR ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR Page 1 of 108

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Page 1: Saras Final SIP Report ICFAI

Final SIP Report

A REPORT ON

“A STUDY OF PERFORMANCE AND GROWTH OF SARAS DAIRY”

BY

SMITA CHOUDHARYSubmitted on: 24th September 2007

SARAS DAIRY, ALWAR

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

ISO 9001-2000 AND HACCP CERTIFIED

JAIPUR ROAD, ALWAR PH. 0144 -2702644, 2701010

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Final SIP Report

A REPORT ON

“A STUDY OF PERFORMANCE AND GROWTH OF SARAS DAIRY”

BY

SMITA CHOUDHARY

MBA (III SEMESTER)

A report submitted in partial fulfillment of the requirements of

PGPROGRAM (Class of 2007)

ICFAI National College,

Copies marked list: Mr. Sandeep Kumar Kautish (Faculty Guide)

Mr. Amit Bhattacharya (Company Guide)

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TABLE OF CONTENTS

Acknowledgement.........................................................................................4

Preface............................................................................................................5

Declaration.....................................................................................................6

List of tables and illustrations........................................................................7

Abbreviations.................................................................................................8

Company profile............................................................................................9

Departments of AZDUSS..............................................................................18

Abstract/Summary.........................................................................................24

Introduction....................................................................................................26

Body of thesis................................................................................................29

Research design/methodology.......................................................................33

Review of literature........................................................................................38

Empirical analysis..........................................................................................40

Findings..........................................................................................................44

Conclusion.....................................................................................................60

Recommendation...........................................................................................61

Appendix........................................................................................................63

References......................................................................................................71

Glossary.........................................................................................................72

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ACKNOWLEDGEMENT

I express my heartfelt thanks to Mr. J.R. Dhaka, Managing Director, AZDUSS Ltd. for his

direction, help and motivation.

I express my sincere thanks to Mr. Sandeep Kumar Kautish (Faculty Guide), Mr. Amit

Bhattacharya (Company Guide, Plant Manager, Saras Dairy, Alwar [AZDUSS Ltd., Alwar]),

Mr. L.C. Balai (Deputy Manager, Marketing) and Mr. Anil Kumar Mathur (Deputy Manager,

Administration) for their support and cooperation. They provided me their valuable help and

guidance during the training period.

I shall be highly indebted to the staff of the marketing department of Saras Dairy (AZDUSS

Ltd., Alwar) for the moral support they extended to me during the SIP training.

I also thank the booth/parlour owners and the respondents whom I surveyed for giving me

their valuable time and fruitful suggestions.

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PREFACE

Marketing is one of the most important functions in business. It is the discipline required to understand customers' needs and the benefits they seek.

No study can be termed complete if there is no practical experience. Hence need for training has become a real necessity. The training aims to prepare students through a process of practical experience. Practical exposure no doubt has contributed a significant amount of knowledge to me along with real life experience and was an ideal combination of academic knowledge and practical experience.

Marketing activities can be regarded as lifeblood of all business concerns. In order to enhance the performance of marketing department and overall success of a business concern, study of consumer behavior and their satisfaction, sales and distribution channels, advertisement and competitive advantages is necessary. The performance of a company is very much important for an organization.

Saras Dairy, Alwar is in fact a very ideal location to gain practical experience. I am sure the experience gained in short duration, will go a long way in all my future endeavors.

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DECLARATION

I hereby declare that this project work entitled “A study of performance and growth of

Saras Dairy, Alwar” is my original work, carried out under the guidance of my Faculty

Guide Mr. Sandeep Kumar Kautish and my Company Guide Mr. Amit Bhattacharya.

The facts and figures produced in this report are based on my own experience and study. This

report neither full nor in part has ever been submitted for award of any other degree.

Smita Choudhary

6ND11765

ICFAI National College

Alwar

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LIST OF TABLES AND ILLUSTRATIONS

Table/figure What it illustrates Page no.

Figure1...........Map showing location of milk and milk product industry..............12

Figure2...........Organization chart for AZDUSS....................................................16

Figure3...........People’s opinion about dahi............................................................44

Figure4...........People’s opinion about paneer........................................................44

Figure5...........People’s opinion about ghee...........................................................45

Figure6...........People’s opinion about lassi............................................................45

Figure7...........Survey result of 214 booths/parlours. .............................................46

Figure8...........Responses of 250 people who visited the plant..............................47

Figure9...........Survey result of 500 people............................................................48

Figure10.........Registered DCS...............................................................................52

Figure11.........Milk product manufacture...............................................................53

Figure12.........Milk procurement............................................................................54

Figure13.........Liquid milk sale..............................................................................55

Figure14.........Turn over.........................................................................................56

Figure15.........Golden advice for Saras..................................................................61

Table1............Overview of Saras Dairy, Alwar.....................................................10

Table2............Summary.........................................................................................24

Table3............Tasks and targets assigned to me....................................................30

Table4............Performance analysis......................................................................32

Table5............AZDUSS Performance at glance....................................................38

Table6............Saras milk supply of Alwar city......................................................39

Table7............Change in prices of Saras products.................................................49

Table8............Reasons of those people who are not using Saras products............50

Table9............My observation of Saras products ..................................................57

Table10..........My observation of Saras dairy........................................................58

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Final SIP ReportTable11..........SWOT analysis of AZDUSS..........................................................59

ABBREVIATIONS

1. AZDUSS.......................Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar

2. DCS...............................District Cooperative Societies

3. FGS...............................Finished Goods Supply

4. FMP...............................Fresh Milk Products

5. HACCP.........................Hazard Analysis Critical Control Points

6. ISO................................International Standard Organization

7. OJT................................On Job Training

8. SIPSummer Internship Program

9. SKM..............................Skimmed Milk Powder

10. WMP.............................Whole Milk Powder

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COMPANY PROFILE

Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar (AZDUSS Ltd., Alwar) is a cooperative organization registered under Cooperative Act with Registrar of Cooperative, Government of Rajasthan. AZDUSS Ltd., Alwar was established in the year 1972 keeping in mind the interests of the cattle rearers to implement dairy development activities in the Alwar district, under Operation Flood Program. The task of milk collection started from 22nd August 1973. The main objective of the organization is to eliminate the role of intermediaries and give cattle rearers good value for the milk and prevent them from exploitation. The other objectives of the organization are:

1) To help in financial development of the villages and cattle rearers.

2) To help in the social and financial development of the rural milk producers.

3) To increase the milk producing capacity of the cattle.

4) To make available pure, healthy and high quality milk and milk products to the

customers.

AZDUSS receives direction and assistance from Central Government, State Government, RCDF Ltd. Jaipur and National Dairy Development Board, Anand from time to time. Presently the dairy plant has a capacity to process 1.50 lakh litre milk, prepare 10 M.T. milk powder and 9.0 M.T. ghee per day. Besides these the plant also prepares chhach, lassi, dahi, shrikhand, paneer and other milk products. The plant also has a capacity to pack 2.50 lakh litre milk per day.

The Alwar plant of Saras (AZDUSS Ltd., Alwar) has been certified under internationally accepted quality and food safety management systems in accordance with ISO 9001-2000 with HACCP. The organization also helps in improvement of animal breed, providing animal health services, insurance of animals, women dairy project and providing vermi compost manure to the cattle rearers. The organization also provides cattle feed which is purchased from Nadbai and marketed in Alwar.

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Overview of Saras dairy, Alwar

Table 1

Chairman Mr. Ram Phal Gurjar

Managing Director Mr. J.R. Dhaka

Establishment year in Alwar 1972

Employees Permanent employees 197Contract labor 150

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

No. of registered Cooperative Societies

795

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

New product Ice-cream and softy to be launched soon

Address Jaipur Road, Alwar 301001 [Rajasthan]

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

Fax (0144)-2342925

E-Mail [email protected]

Turn Over (2006-07) 99.15 Crore

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UNDERSTANDING ISO-9001-2000 AND HACCP

Introduction

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

HACCP

HACCP is a food safety management system and has its origin in U.S. manned space programme to ensure food safety to the astronauts in late 1960s.The standard designed to keep food safe in outer space has now become a standard on the earth.

What is HACCP:-

A system, which identifies, evaluates and controls hazards, which are significant for food safety.

H- Hazard

A- Analysis

C- Critical

C- Control

P- Points

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Map showing location of milk and milk products industry in Rajasthan

Figure 1

Product Portfolio

Saras Dairy, Alwar (AZDUSS Ltd., Alwar) prepares and markets the following products:

1) Milk (Available in ½ and 1 litre packs)

a. Full cream Milk (Red) Gold It contains FAT- 6% and SNF- 9%

b. Toned Milk (Blue) Taaza It contains FAT-3% and SNF- 8.5%

c. Double toned Milk (Yellow) Smart It contains FAT-1.5% and SNF-9%

d. Skim Milk (Purple) Lite It contains FAT-0.5% and SNF-8.5%

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2) Chhach

a. Plain 500ml

b. Namkeen 250ml

3) Lassi 250ml

4) Ghee ½ litre , 1 litre and 15 litre tin

5) Paneer 200 gm and 1 KG

6) Shrikhand 100 gm Cup

7) Dahi 200 gm Cup

8) Butter (Purchased from Jaipur Dairy, marketed in Alwar) 100 gm and 500 gm

9) Flavored milk (Purchased from Jaipur Dairy, marketed in Alwar) 200 ml Bottle

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From the Managing Director’s Desk:

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

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“To provide better milk procurement price along

with technical input service to member producers. To

procure maximum milk, provide safe and good

quality milk and milk products at competitive price

to consumers. Thrust will be for better financial

health of milk union”

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Interview of the Managing Director of AZDUSS Ltd., Alwar

I interviewed the Managing Director of the organization Mr. J.R. Dhaka on 22nd April 2007. Here are the excerpts from the interview.

Question 1: Do you inspect the plant regularly?Answer: Yes, I inspect the plant daily.

Question 2: What do you observe while inspecting the plant and the office?Answer: House keeping, hygienic condition, people are at work place.

Question 3: What is the cooperation level of your employees?Answer: Cooperative

Question 4: What are your future plans and strategies?Answer: Strengthening milk procurement and milk marketing.

Question 5: What are the promotional activities you conduct to promote your products?Answer: Mouth publicity, awareness programmes.

Question 6: Do you organize events or seminars for your customers to make them aware about your products?Answer: Yes

Question 7: Do you conduct staff meeting for smooth working and better coordination?Answer: Yes.

Question 8: Does any conflict arise between your staff members? If yes, what do you do to resolve the conflict?Answer: Conduct joint meeting.

Question 9: Do you provide training to your staff?Answer: Yes

Question 10: What measures do you take to ensure smooth functioning of the organization?Answer: Discipline, timely payment and personal benefits of staff.

Question 11: Who is responsible for setting prices of Saras products?Answer: R.C.D.F., state body and milk union.

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Figure 2

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Who’s who of Marketing Department

Hierarchy of Marketing Department

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Mr. J.R. Dhaka, M.D.

Mr. Amit Bhattacharya, Plant Manager

Mr. Lal Chand Balai, Dy. Manager

Mr. Mahesh Sharma, Asstt. Manager

Sales Supervisor

Sales Inspector

Root Supervisors

Skilled Workers

Computer Operators

Fourth Class

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DEPARTMENTS OF SARAS DAIRY (AZDUSS LTD., ALWAR)

Marketing Department

According to Peter Drucker, “The aim of marketing is to make selling superfluous.”

Marketing department is one the most important department in every organization. The marketing activities of the organization include providing support to the milk unions within and outside the state. The marketing department conducts various surveys to know the needs and expectations of the customers.

Marketing department is responsible for the sale of liquid milk. It decides the routes by which the milk is supplied as well as decides the number of booths in district and up country. It also appoints distributors for supply of milk from dairy plant to different areas of district and up country market. Presently in Alwar city there are 315 working booths and 10 parlours. AZDUSS Ltd., Alwar is also marketing various fresh milk products in Saras brand like chhach, lassi, paneer, shrikhand, dahi and long life products such as ghee, skim milk powder and whole milk powder.

Various sales promotion techniques are used by marketing department to increase the sale of Saras products like

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

Human Resource Department

Human resource is the most valuable asset for any organization. A human resource manager is responsible to build up an effective workforce, handle the expectations of the employees and make sure that they perform at their best. In management human resource management deals with people. Each and every organization consists of people and an organization has to utilize their services, develop their skills, motivate them, and make sure that they remain committed towards the organization to achieve the goals of the organization.

According to Byars and Rue “Human Resource Management encompasses those activities designed to provide for and coordinate the Human resources of an Organization.”

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

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

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Final SIP ReportOperations Department

The operations department defines the working of the organization.

Processes: The steps for preparation of various products are as follows:

Process of making Ghee

Pasteurizer

Cream Separator(To separate cream from milk)

Cream Tank(To collect the cream)

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

Melting Vat(The butter is melted in Melting Vat)

Ghee Kettle(The melted butter boils in ghee kettle)

(This ghee is collected and stored in settling tank)

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

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Final SIP ReportPlain Chhach:

This is pasteurized milk which contains 3.1% fat and 8.6% SNF and acidity 1.08%. This milk is boiled at 40 degree celcius and 3% curd is added. It is diluted by 40% DTM. This is packed in 500 ml packets and supplied to the market for sale.

Namkeen Chhach:

In plain chhach various ingredients like 0.6% salt, 0.3% jeera, 0.15% rock salt and 0.1% pepper is added to make namkeen chhach and packed in 200 ml packets and supplied to the market for sale.

Lassi:

In plain chhach 12% sugar is added to make lassi and packed in 200 ml packets and supplied to the market for sale.

Paneer Segment:

Milk from SILO

Paneer Vat(In this Vat the milk contains FAT 5.0% and SNF 9.0%.)

The milk boils in paneer vat at 80 degree celcius and 2% citric acid is added in this milk to separate FAT, SNF and water

Paneer Hook(Then curded milk is pressed in paneer hooks for 45 minutes, then this paneer is put into

chilled water at 5 degree celcius)

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

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Final SIP ReportFacilities:

Saras Dairy, Alwar (AZDUSS Ltd., Alwar) provided the following facilities during operations:-

1) Safety for workers2) Medical facility3) First aid facility4) State of the art technology is used5) Insurance cover for workers6) Fire extinguishers are installed in the plant

Finance Department

Financial Management is defined as making available the required funds at an acceptable cost and making sure that the funds are suitably invested according to the plan. This task is performed by the Finance Manager of the organization.

Capital Structure Theories

The two sources of long term finance for a firm are

1) Equity Capital : - Equity capital is the owner’s own capital invested in the business.

2) Debt Capital : - Debt capital is the capital raised from other sources which is invested in business.

Arrange finances through loans from ICICI and HDFC. Earlier loans were taken from Alwar Gramin Bank.

Final accounts are maintained yearly.

Daily transactions are maintained in one day business.

Budget is prepared by the Accounts Department.Financial Ratio Analysis

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

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

Current ratio: This ratio reveals the relationship between current assets and current liabilities.Current ratio = current assets / current liabilities

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

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ABSTRACT/SUMMARY

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

Table 2

S.No. Targets/Tasks Purpose Achievements Date

1. To conduct Survey of 500 people

To know their opinion about Saras products

Interviewed 500 people

19th March 2007 to 04th July 2007

2. To organize plant visit for 250 people

To make them aware of Saras products and quality

Organized plant visit for 250 people

19th March 2007 to 30th June 2007

3. To survey 9 parlours and 210 booths

To know their problems and solve them

Surveyed 9 parlours and 205 booths

08th April 2007 to 18th June 2007

4. To interview people of the marketing department

To know their satisfaction level.

Interviewed every person of the marketing department.

23rd April 2007 to 27th April 2007

5. To take demand from various stations

To give the demand sheet to the FGS department

Took demand from 100 stations

13th May 2007 to 04th July 2007

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

As part of the ICFAI curriculum.

My Initial Report was declared the best in my batch

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

7. Collected secondary To get complete Collected very Got information

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Final SIP Reportdata from various departments

knowledge about Saras

significant data from the MIS and accounts department

about milk procurementLiquid milk sale, turn over

8. Interviewed the Managing Directorof the organization

To gain an insight on the future plans and strategies

Understood the organization’s future plans and strategies

22/04/2007

9. Participated in milk testing camp organized monthly

To inform people about the quality of milk used by them

Learnt how to test the milk sample for purity and to know its nutritional value

20/03/07 to 25/03/07

10. I was given the responsibility to guide 36 MBA Students.

To reduce their work-load.

It improved my communication skills and enhanced my knowledge.

15/05/07 to04/07/07

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

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INTRODUCTION

I joined Saras Dairy, Alwar (AZDUSS Ltd., Alwar) as an intern on 19th March 2007. I am working in the Marketing Department of Saras. My main task was to conduct booth, parlour and customer surveys.

American Marketing Association (AMA) defines marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Marketing deals with products. Product can be in the form of goods, services or ideas. Marketing is not just selling. According to Peter Drucker, “The aim of marketing is to make selling superfluous.”

Marketing department is one the most important department in every organization. The marketing activities of the organization include providing support to the milk unions within and outside the state. The marketing department conducts various surveys to know the needs and expectations of the customers.I was assigned the task to survey parlours, booths and customers of Alwar city.In Alwar city there are 10 Saras parlours and 315 booths that are currently working.

On the basis of my observation till date I expand the name SARAS as follows:

S – Smart

A – Association

R – Responsible for

A – Authentic

S – Services

I define SARAS as a Smart Association Responsible for Authentic Services.

OBJECTIVES

The objectives of the Executive Training at Saras Dairy (AZDUSS Ltd., Alwar) are:

1) To identify the working of the organization.

2) To conduct an exhaustive analysis of the marketing department.

3) To increase the sales of the products that are prepared and marketed by the

organization.

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Final SIP Report4) To conduct an extensive study of the market place and the customer’s needs.

5) To understand the core business of the company, organization chart, key personnel in

the company, manufacturing units, marketing channels, financial policies, etc.

6) To do a comprehensive analysis of the company and prepare the SWOT (Strengths,

Weaknesses, Opportunities and Threats) analysis report for the company.

7) To build a good rapport with the company’s staff.

8) To understand the organizational structure and the top management team including

the Chairman, Managing Director and the Officers.

9) To do a practical and live observation of the work place.

10) To understand the attitudes and behavior of the customers.

11) To analyze the sale of Saras milk in Alwar district and find out the factors which are

affecting its sale.

LIMITATIONS

Any research in any field topic gives some new results, discovering new areas etc. but there are always some limitations thereof.

The limitations that I came across during the course of my training at Saras (AZDUSS Ltd., Alwar) are:

1) Response Bias: Sometimes the respondents consciously or unconsciously

misrepresent the truth, and then it amounts to response bias.

2) Non response errors: Sometimes respondents do not give a response or give partial

response. It is called non response error. The reason may be lack of knowledge or

unwillingness to answer.

3) Fluctuations in weather conditions: During the survey I came across unfavorable

weather conditions like scorching heat and dust storm.

4) Scarcity of time : There is limited time available each day and lot of tasks have to

completed in a day like preparing reports, conducting surveys, spend time at the office

to gain knowledge, etc.

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5) Different tastes and preferences : The study was conducted in the urban areas and it

cannot be applied to the rural areas because the tastes and preferences of people of

rural and urban areas differ vastly.

6) Inaccurate information : The answers given by the respondents are not always

correct and may be misleading.

7) Time consuming : It is very time consuming to go door to door in order to conduct a

survey of various homes and find their views and study their buying behavior.

8) Small sample size: The sample size is small and it may not actually represent the

whole population.

9) Difficult to convince people : Sometimes it becomes very difficult to convince people

as many of them are not at all aware of Saras products and some are very stubborn. It

becomes slightly difficult to convince such people but it is a challenging task and a

good learning experience.

10) Limited information : Being a trainee, it became difficult to obtain some confidential

information about the organization. This sometimes became a hurdle during the

training.

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

12) Dependence on respondents’ views: The data collected is totally dependent on

respondents’ views, which could be bias in nature.

13) Difficult to recall: It is not possible and economically viable to revisit a person who

was not present at home.

14) Lack of educated and cooperative respondents: Personal interviews are successful

only when the respondents are educated.

The limitations that Saras Dairy comes across are:

1) Low availability of raw milk in summers.

2) Dependence on milk producers.

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Final SIP Report3) Dependence on monsoons.

4) Milk can be produced not manufactured.

5) Increasing competition in dairy industry.

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BODY OF THESIS

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

MAIN TASKS AND TARGETS

1) To conduct a comparative study of the growth of Saras (AZDUSS Ltd., Alwar) for

three consecutive years.

2) To conduct survey of Saras parlours and booths to know their problems and sort them

out. To get feedback from Saras parlours and booths.

3) To get feedback from customers and find their problems, satisfaction level, take their

suggestions and help AZDUSS Ltd., Alwar to implement those suggestions.

4) To take responses from people who do not use Saras products and find the answer to

the question, “Why they are not using Saras products”.

5) To judge the satisfaction level of the employees of AZDUSS Ltd., Alwar.

6) To do entries of daily supply in the supply register.

7) To take demand of various Saras products from parlour/booth owners and distributors

through phone or personal contact in the prescribed proforma. To make maximum

people aware of Saras.

8) To organize free testing camps to test the purity of milk.

9) To increase the sale of Saras products.

10) To implement human resource management techniques to increase the satisfaction

level of the employees of AZDUSS Ltd., Alwar.

11) To interview 500 homes in four months to know their views and opinions about Saras

products.

12) To organize plant visit for 250 people in four months to show them the plant and tell

them the processes that the Saras milk undergoes and how different Saras products are

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Final SIP Reportprepared. The purpose of organizing such visits is to tell the people about the many

advantages that Saras offers them like

a. Hygienic plant

b. High nutritional value of its products

c. Good storage facilities

d. Cleanliness of the plant and storage area

13) I was given the responsibility to guide 36 MBA students (working as interns in Saras

Dairy, Alwar) and assign them their tasks and duties on a weekly basis.

Targets and Tasks Assigned to me

Table 3

S.No. Targets/Tasks Date

1. To conduct Survey of 500 people 19th March 2007 to 04th July 2007

2. To organize plant visit for 250 people 19th March 2007 to 30th June 2007

3. To survey 9 parlours and 210 booths 08th April 2007 to 18th June 2007

4. To interview people of the marketing department

23rd April 2007 to 27th April 2007

5. To take demand from various stations 13th May 2007 to 04th July 2007

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

Initial Report 31st March 2007Synopsis 07th April 2007Interim Report 12th May 2007Management thesis 05th July 2007Final report 06th July 2007

7. Collected secondary data from various departments

Got information about milk procurement, Liquid milk sale, turn over

8. Interviewed the Managing Directorof the organization

22nd April 2007

9. Participated in milk testing camp organized monthly

20th March 2007 to 25th March 2007

10. I was given the responsibility to guide 36 MBA Students.

15th May 2007 to 04th July 2007

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My Daily Schedule

My tasks at the On Job Training were to study the working of the Saras plant, gather complete information about Saras, conduct market and booth surveys and organize visits for people to see the Saras plant.

The daily schedule that I follow to complete these tasks is:

Sign in at the company office at 09:30 AM

Make a plan for the whole day between 09:30 AM to 10:30 AM.

Go to the field to conduct market survey and booth survey from 10:30 AM to 12:30

PM.

Collect information about the Saras dairy from various departments from 12:30 PM to

01:30 PM.

Lunch time is from 01:30 PM to 02:30 PM.

Organize visits for the visitors from 02:30 PM to 03:30 PM.

Visit the plant to understand the working of the plant from 03:30 PM to 04:30 PM.

Discuss with my company guide the tasks for the next day from 04:30 PM to 05:00

PM.

Sign out of the company office at 05:00 PM.

Note:

1. Every Saturday went to Jaipur to submit my weekly report and attend the session

organized by ICFAI National College, Jaipur for student development.

2. Sunday was weekly off.

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Performance Analysis

I started my SIP training at Saras dairy (AZDUSS Ltd., Alwar) on 19 th March 2007. I was given the responsibility of surveying 210 booths, 9 parlours, 500 people and organize plant visit for 250 people.

I was asked to increase awareness about Saras products amongst the general public by organizing plant visits for them. For this I organized plant visit for many people and also mass visits for

Another task assigned to me was to be a part of the milk testing camps organized by the marketing department of Saras (AZDUSS Ltd., Alwar). For this we went to various locations of Alwar city and tested the milk samples brought by the general public. We provided them instant results and explained them the advantages of using Saras products. Many of them were convinced that Saras products are better as compared to the products provided by local vendors. This has increased the sale of Saras products, specially milk.

Table 4

S.No.Factor Target Performance Variance Reason

1. Plant visits 250 250 Nil -

2. Door to door surveys 500 500 Nil -

3. Booth surveys 210 205 5 Due to lack of time

4. Parlour surveys 9 9 Nil -

5. Training to M.B.A. students

36 36 Nil

6. Participation in free milk testing camp

6 days camp

Full attendance

Nil

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RESEARCH DESIGN/METHODOLOGY

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

Steps in the research design process

Identifying and Defining Problem/Opportunity

Planning the strategy

Selecting the method of strategy

Selecting a Sampling Procedure

Data Collection

Evaluating the Data

Preparing and Presenting the Report

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PLANNING

EXECUTION

REPORTPREPRATION

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Final SIP Report

Marketing research is defined as the formal process of collecting information, analyzing the result, communicate the findings and implementation in terms of marketing actions. Analysis of information is used in evolving some marketing and financial decisions.

The research methodologies used to collect data are of two types:

1) Primary method : In this type of method data is collected with the help of face to face interaction with a person.

2) Secondary method : It does not involve face to face interaction. In this type of method data is collected through other sources like internet, books, etc.

In this project I have used both the methodologies to collect the data.

Primary Method:

1) I have used primary method to collect data from various departments of Saras Dairy, Alwar (Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar) by talking to heads and staff members of each department.

2) Data is also collected by preparing a questionnaire and asking the respondents to fill up the questionnaire.

3) Data is also collected by conducting one to one interviews.

Secondary Method:

1. I have used secondary method to collect some data from the annual accounts of the company Saras Dairy, Alwar (AZDUSS Ltd., Alwar)

2. Data is also collected from the Annual publication of Saras (Magazine)

Research methodology adopted for the study

During my research I have tried to

Assess the brand image that the company holds in the minds of the customers.

Assess the impact of promotional activities.

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METHOD OF SURVEY

Survey Research

Research is the search for, and retrieval of, existing, discovery or creation of new information or knowledge for a specific purpose. Research has many categories, from medical research to literary research. Marketing research is a form of business research.

A survey research is defined as the method of collecting information by asking a set of pre formulated questions in a predetermined sequence in a structured questionnaire to a sample of individuals drawn so as to be representative of a defined population.

Some of the common methods of conducting surveys are:

Personal Interviews: Personal interviews are characterized by the presence of four entities i.e. the researcher, the interviewer, the interviewee and the interview environment.

Telephonic Interviews: Telephonic interviews are judged as one of the best cost-effective alternatives to face-to-face interviews and mail surveys.

Self-administered Interviews: Self administered interview is an interview in which the questionnaire is filled out without the intervention of an interviewer.

Mail Surveys: Mail survey is a survey where questionnaire is sent to the qualified respondents by e-mail.

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

Reasons for Choosing Personal Interview:

I chose the personal interview method for survey research due to the following reasons:

1) Feedback Opportunities: In face to face interview, doubts of the interviewee can be clarified. Also the respondent can be assured confidentiality.

2) Probing: The interviewer in a personal interview can explore the respondent for complex answers. The detailed information so obtained is very useful to the researcher.

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

Questionnaire Design

A questionnaire is a set of questions to be asked from respondents in an interview, with appropriate instructions indicating which questions are to be asked, and in what order. Questionnaires are used in various fields of research like survey research and experimental design.

Questionnaire design is a vital issue in interviewing. A properly designed questionnaire can tap the necessary information from the respondent. Therefore, researchers always design a tactful set of questions to probe and prompt the interviewee to give useful answers. Questionnaires fall under various categories, such as structured, unstructured, disguised and undisguised.

In the questionnaire I have used two types of questions:

Open Ended Questions

In open ended question design each question has a series of lines (or a blank space) in which the respondents are encouraged to write, in their own words, how they feel about the topic in question.

Close Ended Questions

Closed question provide a set of answers that the designer of the survey (based on prior experience and responses in the pilot survey) considers will accommodate the majority of potential responses.

A questionnaire serves four functions:-

Enables data collection from respondents

Lends a structure to interviews

Provides a standard means for writing down answers

Help in processing collected data

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The various steps in questionnaire design are:-

1) Preliminary decisions

2) Question content

3) Response format

4) Question wording

5) Questionnaire sequence

6) Questionnaire pre-test, revision and final draft

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REVIEW OF LITERATURE

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

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

PERFORMANCE AT GLANCE

Table 5

S.No. Particulars 01-02 02-03 03-04 04-05 05-06 06-07

1 Registered DCS 497 532 609 681 742 795

2 Functional DCS 368 442 465 564 599 632

3 Prop. DCS (CC) 366 388 454 451 462 443

4 DCS Membership 59588 62966 66217 70281 76931 82655

5 Milk Procurement (per day) 87.74 88.79 97.82 108.9 89.65 79.54

6 Rate / KG (Rs) 9.98 10.77 13.56 12.29 13.22 15.05

7 Milk payment (Rs.Lakhs) 3195 3491 4856 4884 4325 4370

8 City Supply (TLPD) 15.5 18.62 29.52 35.71 67.03 132.69

9 M.D. Supply (TLPD) 75.71 101 144.78 143.5 120.05 0

10 Ghee Sale Total MT 817 652 485.45 1056.72 683.16 941.63

11 Ghee Sale (DCS) MT 104 79 80.66 203.48 213.83 225.1

12 Cattle Feed Sale (MT) 3035 3363 4636 6333 7001 6921.35

13 Turn Over (Rs. Crore) 53.6 59.57 93.77 96.33 95.8 99.15

14 Net Profit (Rs. Lakhs) 64.14 69.43 67.56 8.88 2.25 57.4

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Final SIP ReportTable 6

Table showing Saras Milk Supply of Alwar City with percentage growth

Month 00-01 01-02 Gro. % 01-02 02-03 Gro. % 02-03 03-04 Gro. %

Apr 10259 9788 -4.59 9788 10214 4.35 10214 13094 28.20

May 9757 10944 12.17 10944 12946 18.29 12946 15341 18.50

Jun 9620 9862 2.52 9862 11683 18.46 11683 16806 43.85

Jul 10434 9975 -4.40 9975 12090 21.20 12090 17114 41.56

Aug 10431 10283 -1.42 10283 11322 10.10 11322 15654 38.26

Sep 9337 10255 9.83 10255 9890 -3.56 9890 16368 65.50

Oct 7910 8361 5.70 8361 9985 19.42 9985 13530 35.50

Nov 6699 7818 16.70 7818 8848 13.17 8848 11777 33.10

Dec 5883 7329 24.58 7329 8451 15.31 8451 10682 26.40

Jan 5733 6805 18.70 6805 8275 21.60 8275 10282 24.25

Feb 6904 8063 16.79 8063 9716 20.50 9716 11375 17.07

Mar 7280 8978 23.32 8978 10857 20.93 10857 12591 15.97

Total 100247 108461 120 108461 124277 180 124277 164614 388

Avg. 8354 9038 8 9038 10356 15 10356 13718 32

Month 03-04 04-05 Gro. % 04-05 05-06 Gro. % 05-06 06-07 Gro. %

Apr 13094 14181 8.30 14181 14683 3.54 14683 18855 28.41

May 15341 15318 -0.15 15318 18668 21.87 18668 19975 7.00

Jun 16806 16558 -1.48 16558 18371 10.95 18371 20888 13.70

Jul 17114 15623 -8.71 15623 16857 7.90 16857 21958 30.26

Aug 15654 14357 -8.29 14357 17102 19.12 17102 19572 14.44

Sep 16368 12392 -24.29 12392 15770 27.26 15770 20807 31.94

Oct 13530 13005 -3.88 13005 15179 16.72 15179 18197 19.88

Nov 11777 10828 -8.06 10828 14026 29.53 14026 16542 17.86

Dec 10682 10208 -4.44 10208 13177 29.09 13177 16012 21.51

Jan 10282 10807 5.11 10807 13352 23.55 13352 16279 21.92

Feb 11375 11640 2.33 11640 15241 30.94 15241 18034 18.33

Mar 12591 14110 12.06 14110 15314 8.53 15314 18593 21.41

Total 164614 159087 -31 159087 187740 229 187740 225712 247

Avg. 13718 13252 -3 13252 15645 18 15645 20519 20

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EMPIRICAL ANALYSIS

Each day is a new learning experience and so was the case during my Executive Training. Every day I learnt something new. During my training I learnt the following things:

1) First and foremost I learnt to practically apply the knowledge gained through theory classes and bridge the gap between academic institution and corporate world.

2) Understood the importance of job responsibility.

3) How coordination is maintained between different departments like marketing, human resource, administration.

4) Learnt the ways to increase milk procurement.

5) Understood the distribution network adopted by Saras.

6) Understood how the management keeps its employees satisfied and retain them.

7) The processes that the milk passes through before reaching the final consumers.

8) The processes by which various milk products like ghee, butter, dahi, paneer, chhach, lassi, shrikhand, etc. are prepared.

9) The marketing strategies adopted by Saras Dairy, Alwar (AZDUSS Ltd., Alwar).

10) Learnt how to conduct door to door interviews. Initially I felt slightly uncomfortable conducting the interviews but with time I learnt a lot and became very comfortable conducting door to door personal interviews.

11) Learnt to participate in milk testing camps and test the milk sample for purity.

12) Learnt to organize plant visit for visitors.

13) Learnt to take demand of Saras products from various stations through phone or personal contact in the prescribed proforma.

14) Learnt how to build a good rapport with the staff. I was very successful in building good rapport with the staff of the marketing department and other departments of the organization as well.

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I worked as an intern in Saras dairy (AZDUSS Ltd., Alwar) which processes and markets milk products which are quickly perishable. Therefore the marketing strategy of Saras is very different from others. In this type of organization it is necessary to maintain a balance between demand and supply and I learnt very well how to maintain a balance between demand and supply. During the four month association with Saras I deeply understood many facts about milk which were not in my knowledge earlier.

Frequently Thought Questions

Many times I used to think that what is milk? How is it useful for us? What are its constituents and many more? During my association with Saras I found answers to all my questions and queries.

Question 1: What is milk?

Answer: Milk is a lacteal secretion from the mammary glands of a healthy milky animal free from colostrum. Milk has got mainly three constituents – fat (3 to 6%), snf comprising of proteins, lactose, minerals etc (8 – 9%) and water (85%).

Question 2: Is Saras milk prepared from powder?

Due to the calving cycle, cow / buffalo remain in milk for 8-9 months in a year. The high yielding and low yielding period is different in case of cow or buffalo, but generally winters are called flush season due to high production of milk whereas summers are called lean season when production is less. On the other hand, the demand is almost constant through out the year. Hence during flush season, fat part of milk is preserved in form of white butter and SNF in form of powder after evaporating water.  These two constituents are mixed and processed during lean season to meet the demand. So powder is nothing but preserved SNF / fat of milk.

Question 3: How is milk useful for us?

Milk is nature’s perfect food for all ages. It has almost all the vital nutrients needed for growth and well being of human body. Milk is the richest natural source of calcium and essential amino acids. It is good for bone formation. It is particularly beneficial for people recovering from sickness, for sportsmen, for old people, for pregnant women and for growing children. The doctor recommends a minimum daily intake of 250 ml. Or one and a half glass of milk for every person. Normal cow milk has 4%fat and buffalo milk 6% fat. There is another important   constituent of milk- solids not fats these solids – not – fat. (or SNF, as it is commonly called) comprise of proteins, minerals, carbohydrates and vitamins.  For milk to be nutritionally balanced, it has to contain both fat and solids- not- fat in right proportion.

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Question 4: Why pasteurized milk is better than vendor’s milk?

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

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“SO, INSIST ON SARAS MILK JUST !!!!!

BECAUSE ONLY SARAS MILK GIVES YOU

TRUE VALUE FOR YOUR MONEY.

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

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FINDINGS

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

Figure 3

People's opinion about Dahi

36%

18%

18%

15%

13%

Like very much

like somew hat

neutral

dislike somew hat

dislike very much

Figure 4

People's opinion about Paneer

51%

29%

10%

5%5%

Like very much

like somew hat

neutral

dislike somew hat

dislike very much

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Figure 5

People's opinion about Ghee

62%13%

12%

10%3%

Like very much

like somew hat

neutral

dislike somew hat

dislike very much

Figure 6

People's opinion about Lassi

44%

24%

8%

14%

10%

Like very much

like somew hat

neutral

dislike somew hat

dislike very much

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

public.

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Survey Results

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

Figure 7

Figure 8

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

Figure 8

Page 49 of 75

Responses of 250 people who visited the plant

11948%

6124%

2912%

239%

114%

73%

Highly convinced

Very much convinced

Fairly convinced

Unconvinced

Highly unconvinced

Can’t say

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

Figure 9

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Survey result of 500 people

28958%

9820%

6613%

214%

122%

143%

Excellent

Very good

Good

Poor

Very poor

Can’t say

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Table 7Product Price before

01st April 07Price as on 07th April 07 and onwards

Price as on 01st May 07 and onwards

Price as on 01st July 07 and onwards

FCM (Gold) Rs.20 Rs.21 per litre Rs.22 per litre Rs.23 per litre

Toned Milk (Taaza) Rs.16 Rs.17 per litre Rs.18 per litre Rs.19 per litre

Double Toned Milk (Smart) Rs.14 Rs.15 per litre Rs.16 per litre Rs.17 per litre

Skimmed Milk (Lite) Rs.13 Rs.13 per litre Rs.13 per litre Rs.15 per litre

Ghee (1 litre) Rs.160 Rs.165 Rs.170 Rs.170

Dahi (200 g) Rs.6 Rs.7 Rs.8 Rs.8

Paneer (200 g) Rs.20 Rs.22 Rs.25 Rs.25

Paneer (1 Kg) Rs.100 Rs.110 Rs.120 Rs.120

Lassi (250 ml) Rs.5 Rs.6 Rs.7 Rs.7

Chhach (Plain) 500 ml Rs.6 Rs.7 Rs.7 Rs.7

Chhach (Namkeen) 250 ml Rs.4 Rs.5 Rs.6 Rs.6

Shrikhand Plain (100 g) Rs.7 Rs.7 Rs.8 Rs.8

Shrikhand Kesar Pista (100 g) Rs.8 Rs.8 Rs.9 Rs.9

Flavored Milk (200 ml) Rs.10 Rs. 10 Rs.10 Rs.10

Table showing change in price of different Saras products

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

Reasons of those people who are not using Saras products

Table 8

S.No. Factor % of the people surveyed

1 Absence of home delivery 23.6

2 Unknown about Saras products 10.2

3 Products are expensive 8.4

4 Priority to buffalo’s milk 10.8

5 Possess bad smell 5.8

6 Non availability of booth in the vicinity 6.6

7 Use Saras milk in case of emergency only 5.8

8 Faith in long association with the milkman 9.2

9 Not able to pay in cash 8.2

10 Consumers own cows and buffalos 4.8

11 No price consistency 6.6

TOTAL 100

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

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Final SIP Report

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

REGISTERED DCS

Figure 10

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Page 55 of 75

0

100

200

300

400

500

600

700

800

900

YEAR

NO

.

Series1

Series2

Series1

Series2 497 532 609 681 742 795

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

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Final SIP Report

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

MILK PRODUCT MANUFACTURE

Figure 11

0

500

1000

1500

YEAR

QT

Y. I

N M

.T.

GHEE

SMP

WMP

GHEE 720 678 607 612 754 1162

SMP 207 132 12 243 399 1118

WMP 290 342 255 80 197.5 155

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

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ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

MILK PROCUREMENT

Figure 12

0

10

20

30

40

50

60

70

80

90

YEAR

QT

Y.

000,K

gs

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

Series1 59.59 62.97 66.22 70.28 76.93 82.66

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

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ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

LIQUID MILK SALE

Figure 13

0

20

40

60

80

100

120

140

YEAR

00

0' L

IT P

ER

DA

Y

2002-03

2003-04

2004-05

2005-06

2006-07

Series1 18.6 29.56 35.81 67.03 132.69

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

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ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR

TURN OVER

Figure 14

0

20

40

60

80

100

120

Year

Cro

re

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

Series1 53.6 59.57 93.77 96.33 95.8 99.15

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

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

Table 9

Product

Product Excellent Very Good

Good Poor Very Poor

FCM (Gold) √

Toned Milk (Taza) √

Double toned milk (Smart)

Skimmed milk (Lite) √

Ghee √

Dahi √

Paneer √

Lassi √

Chhach (Plain) √

Chhach (Namkeen) √

Shrikhand (Plain) √

Shrikhand (Kesar Pista) √

Flavored Milk √

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My Observation of Saras Dairy (AZDUSS Ltd., Alwar)

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

The various attributes that I observed and the points I allocated to each observation are presented below in tabular format.

S.No. Characteristic of Saras Dairy Number of Points

1 Variety of milk provided by Saras Dairy 9

2 Prices are affordable 6

3 Round the clock availability 0

4 Quality and hygiene 10

5 Enough range of FMP 8

6 Staff is cooperative 9

7 Follow the ISO 9001-2000 norms 10

8 Give weightage to suggestions (Suggestions are always welcome)

8

9 Customer awareness camps and plant visits 7

10 Employee satisfaction 8

11 Market reputation 9

12 Advertisement and publicity 4

13 New product development 5

14 Channels of marketing 7

Total 100

Table 10

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

Table 11

STRENGTHS

The products are very pure The products are extremely

hygienic The plant is ISO 9001- 2000

and HACCP certified

WEAKNESSES

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

summers

OPPORTUNITY

Milk is an essential commodity which every body uses.

There is no competitor of packed milk in Alwar.

THREATS

Milk can be produced not manufactured.

There is always a possibility of a competitor entering the market.

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CONCLUSIONS

During the four months of my training at Saras Dairy (AZDUSS Ltd., Alwar) and the surveys I conducted till date, I reached the following conclusions:

1) Saras (AZDUSS Ltd., Alwar) is a very large and reputed organization and it gives me immense pleasure and satisfaction to be associated with such a reputed organization.

2) The organization maintains state of the art quality and hygiene standards.

3) A coin has two sides and it holds true for every organization, no matter how large or reputed it is, there are always some small shortcomings along with the plus points of the organization and Saras is no different.

4) Prices of Saras products have been hiked three times during my SIP. I observed that due to frequent price hike people are losing faith in Saras and they think that Saras is very unreliable and has no consistency in price. This factor has resulted in fall in sales.

5) Many people do not have faith in Saras products. They still believe that the products made by the local dairies are better.

6) Some people feel that Saras products possess bad smell and that’s why they don’t use Saras products.

7) Saras parlours/booths also face problems because sometimes there is no timely supply of products to them. They receive the products late in the day and then these products have to be sold the next day. People do not accept such products.

8) People believe that the Saras products are costly.

9) During the course of customer survey I also found the general public’s opinion about different Saras products.

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RECOMMENDATIONS

On careful observation of the Saras dairy during the training period, I have the following suggestions for Saras dairy, which on proper implementation may provide a big boost to it.

1) Home delivery facility should be provided.

2) Increase in advertisement and publicity.

3) Motivation program for booth and parlour owners.

4) All information regarding Saras dairy and its products should be available on internet.

5) The policy that an organization must follow in order to run successfully is…..

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Rule #1The customer is always right!

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

Golden Advice for Saras

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Final SIP ReportFigure 15

6) Marketing department should be well furnished and attractive.

7) There should be consistency in price.

8) Alwar dairy should give milk producers competitive prices and facilities.

9) Glow sign boards should be provided to booth and parlour owners.

10) New products should be launched like ice-cream.

11) An organization like Saras should have a reception and a receptionist.

12) To popularize ‘Shrikhand’ free samples may be distributed at some public places.

13) Inspection and frequent check of booths and parlours.

14) Good coordination between marketing department and booths/parlour owners.

15) Departments should be interconnected through computer network.

16) Employee identification card should be provided to employees of Saras.

17) New technology should be adopted from national and international company’s experts

in the field.

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APPENDIX

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

Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar

Date:_________

Questionnaire for Customers1) Name : ___________________________________2) Husband’s Name: ____________________________________3) Address : ___________________________________

___________________________________ ___________________________________

4) Profession : ___________________________________5) Age : ___________________________________6) Are you aware about Saras? Yes No

7) Number of family members : _______________ Adults __________ Children _________

8) Do you use Saras Products : Yes No9) If yes which products do you use?

Milk : Full Cream Toned Double Toned Skimmed

Butter Dahi Ghee Paneer s Shrikhand

Chhach : Plain Namkeen Lassi : Sweet

10) Are you satisfied with quality of Saras products? Yes No

11) Do you think that Saras products can be improved further? Yes No

12) Do you have any suggestions for further improvement of Saras products?__________________________________________________________________

13) Which is your nearest Saras booth? ______________________________________________________________

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14) Are number of booths sufficient in your locality? Yes No

15) Are all products available at the booth? Yes No

16) Do you think Saras should start the system of home delivery? Yes No

17) Do you want Saras to introduce any new product? Yes No

If yes, which types of products?____________________________________________________________

18) Are you satisfied with the price of Saras Products? Yes No

If not why and what should be the right price? _______________________________________________________________

19) Any Suggestions __________________________________________________________________

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Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar

Questionnaire to Obtain Feedback from the Booth/Parlours

1) Name of the Booth/parlour: _________________________________2) Address : __________________________________

__________________________________ __________________________________

3) Products available with the booth/parlourMilk : Full Cream Toned Double Toned Skimmed

Butter Dahi Ghee Paneer Shrikhand

Chhach : Plain Namkeen Milk Cake

Lassi : Sweet

4) Do you get timely supply from Saras? Yes No5) Do you get proper storage facilities to store the products? Yes No6) Average daily sales of the products?

Milk : _____________________________Dahi : _____________________________Ghee : _____________________________Chhach : _____________________________Lassi : _____________________________Paneer : _____________________________

7) What measures do you take to improve sales? _____________________________________________________________________

8) Does management of Saras help you to improve sales? Yes No

9) What support do you expect from the management of Saras to boost sales? _____________________________________________________________________

10) What source do you use to convey your demand to the plant? _____________________________________________________________________

11) Does Saras give you any credit facility and what are the payment terms and conditions? _____________________________________________________________________

12) What are the timings of your booth/parlour? _____________________________________________________________________

13) How much manpower is required to run the booth/parlour? ______________________________________________________________________

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Final SIP Report14) Are you satisfied with the profit margins you get? Yes No

15) Do you have arrangement of home delivery for regular customers? Yes No

16) How do you collect your payment from customers, monthly or cash and carry? _____________________________________________________________________

17) Do you have any alternative source of electricity in case of power failure to keep your products safe? Yes No

18) Do you sell other products (like bread, biscuits, eggs, etc.) along with the Saras products? Yes No

19) Are you able to sell the received products daily or you are left with some unsold products? Yes No

20) What do you do of the unsold products? ______________________________________________________________________

21) How do you handle the excessive demand for any product? ______________________________________________________________________

22) Does the marketing department of Saras help you in fulfilling the excessive demand? ______________________________________________________________________

23) Does the marketing department of Saras ask about your problems? Yes No

24) Does the marketing department of Saras solve your problems? Yes No

25) Any suggestions:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar

Questionnaire to Obtain Employee Feedback

1) Name : ______________________________________2) Department : ______________________________________3) Designation : _____________________________________ 4) Address : ______________________________________

______________________________________ ______________________________________

5) No. of years in service: ______________________________________6) Timings : ______________________________________7) Job responsibility : ______________________________________8) Satisfaction Level : Extremely Not Satisfied Not Satisfied

Satisfied Very Satisfied Extremely Satisfied

9) Facilities Provided: Medical L.T.A. Loan Facility

Conveyance Allowance Traveling Allowance

House Rent Allowance Welfare Schemes

10) If you get better remuneration and opportunity in some other company will you leave Saras Dairy, Alwar? Yes No

11) How much time do you devote for field work in a day?________________________________________________________________________

12) Are you satisfied with the policies of the company with respect to customer?

Yes No

13) What steps do you take to fulfill the demand for milk when supply is short?________________________________________________________________________

14) What are the means of advertising you use?

Electronic media Print media Banners Hoardings Door to door

marketing

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

Yes No

16) What are the timings of the booths?________________________________________________________________________

17) Do you prepare each product marketed by you at the Alwar plant? Yes No

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Final SIP Report18) Which products do you purchase from other plants of Saras Dairy?

________________________________________________________________________

19) What do you do with the unsold products left after the date of expiry?________________________________________________________________________

20) How do you check the synthetic milk producers operating illegally in the market?________________________________________________________________________

21) How do you prevent duplicacy of your brand?________________________________________________________________________

22) Are you exploring the market outside Rajasthan? If yes, where?________________________________________________________________________

23) Do you get any incentives for meeting the targets?________________________________________________________________________

24) What mechanism do you use to set prices of your products?________________________________________________________________________

25) Do you take feedback from the customers? Yes No

26) Do you organize any camp to solve the problems/grievances of the customers? Yes No

27) Do you work on holidays also or do you adopt rotation system?________________________________________________________________________

28) Do you have any plans to launch new products in the market in the near future? Yes No

29) Do you see any difference between your product and the product coming from the milk producers? Yes No

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Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar

Questionnaire for the Managing Director of the Organization

1) Name : ____________________________________2) Address : ____________________________________

____________________________________ ____________________________________

3) Phone No. : ____________________________________4) Timings : ____________________________________5) No. of years in AZDUSS Ltd., Alwar as MD ______________________________________________________________________

6) Place of work before coming to Alwar ______________________________________________________________________

7) Are you satisfied with the working of Alwar Dairy plant?

Highly Satisfied Considerably Satisfied Reasonably Satisfied

Unsatisfied Highly Unsatisfied

8) Number of staff members

Permanent Contract

9) Do you inspect the plant regularly?

Yes No

10) What is the time interval between two inspections? _____________________________________________________________________

11) What do you observe while inspecting the plant and the office? _____________________________________________________________________

12) What is the cooperation level of your employees?

Non Cooperative Cooperative Extremely Cooperative

13) What are your future plans and strategies? _____________________________________________________________________

14) What are the promotional activities you conduct to promote your products? _____________________________________________________________________

15) Do you organize events or seminars for your customers to make them aware about your products? Yes No

16) Do you conduct staff meeting for smooth working and better coordination?

Yes No

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Final SIP Report17) Does your staff work over time? If yes, do you pay extra money for that?

_____________________________________________________________________

18) Does any conflict arise between your staff members? If yes, what do you do to resolve the conflict? ____________________________________________________________________

19) Do you reserve the power to provide monetary benefit or incentive to your staff for

good performance?

Yes No

20) Do you provide training to your staff?

Yes No

21) Do you take feedback from employees?

Yes No

22) How do you keep record of your data?

Electronically Manually Both

23) Do you organize any camps or meetings where Saras parlour and booth owners are involved and their problems can be heard and solved? Yes No

24) What measures do you take to ensure smooth functioning of the organization? _____________________________________________________________________

25) Do you provide any additional benefit/incentive to booth/parlour owners? Yes No

If yes, what are the conditions that need to be fulfilled by the parlour/booth owners? ___________________________________________________________________

26) Who is responsible for setting prices of Saras products? ____________________________________________________________________

27) Are you aware of the fact that Reliance is entering the dairy industry?

Yes No

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

Yes No

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REFERENCES

The definitions and data used in this report are compiled from the following sources:

1) Annual publication of Saras Dairy, Alwar

2) Business Research Methodology by C.R. Kothari.

3) Business Research Methods published by ICFAI University Press.

4) Dairy map of Rajasthan from the website www.mapsofindia.com

5) Definition of marketing by American Marketing Association

6) Definition of marketing by Peter Drucker

7) MIS department of Saras dairy (AZDUSS Ltd., Alwar).

8) Principles of Marketing by Philip Kotler and Gary Armstrong.

9) Principles of Marketing published by ICFAI University Press.

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GLOSSARY

The definitions of the terms used in this report are:

1) HACCP: HACCP stands for Hazard Analysis and Critical Control Points. HACCP is an industry-wide effort approved by the scientific community as well as regulatory and industry practitioners. This effort is designed to focus specifically on food safety, including food safety in retail establishments. HACCP, or the Hazard Analysis Critical Control Point system, is a process control system that identifies where hazards might occur in the food production process and puts into place stringent actions to take to prevent the hazards from occurring. By strictly monitoring and controlling each step of the process, there is less chance for hazards to occur. HACCP is important because it prioritizes and controls potential hazards in food production. By controlling major food risks, such as microbiological, chemical and physical contaminants, the industry can better assure consumers that its products are as safe as good science and technology allows. By reducing food borne hazards, public health protection is strengthened.

2) ISO : ISO is the International Standard Organization. It is essentially a federation of national standards bodies from around 150 different countries. Within ISO there are constantly new standards and upgrades being worked upon. Established in 1947, ISO is a non-government organization, with a mission broadly to promote the development of standardization with the objective of facilitating international trade. ISO standards are prefixed with 'ISO'. ISO contribute to making life simpler, and to increase the reliability and effectiveness of the goods and services we use.

3) PASTEURIZATION : Pasteurization is the process of heating liquids for the purpose of destroying viruses and harmful organisms such as bacteria, protozoa, molds, and yeasts. The process was named after its inventor, French scientist Louis Pasteur. The first pasteurization test was completed by Pasteur and Claude Bernard on April 20, 1862. The food is heated enough to destroy the most heat-resistant pathogenic or disease-causing microorganism known to be associated with that food. In this process a large quantity of milk is held in a heated vat at 63 °C (145 °F) for 30 minutes, followed by quick cooling to about 4 °C (39 °F).

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