Promotional Strategies of Nandini Milk

Promotional Activities

Introduction

Sales promotion is an important component of a small business's overall marketing
strategy, along with advertising, public relations, and personal selling. The American
Marketing Association (AMA) defines sales promotion as "media and non-media
marketing pressure applied for a predetermined, limited period of time in order to
stimulate trial, increase consumer demand, or improve product quality." But this
definition does not capture all the elements of modern sales promotion. One should
add that effective sales promotion increases the basic value of a product for a limited
time and directly stimulates consumer purchasing, selling effectiveness, or the effort
of the sales force. It can be used to inform, persuade, and remind target customers
about the business and its marketing mix. Some common types of sales promotion
include samples, coupons, sweepstakes, contests, in-store displays, trade shows, price-
off deals, premiums, and rebates.

Businesses can target sales promotions at three different audiences: consumers,
resellers, and the company's own sales force. Sales promotion acts as a competitive
weapon by providing an extra incentive for the target audience to purchase or support
one brand over another. It is particularly effective in spurring product trial and
unplanned purchases. Most marketers believe that a given product or service has an
established perceived price or value, and they use sales promotion to change this
price-value relationship by increasing the value and/or lowering the price. Compared
to the other components of the marketing mix (advertising, publicity, and personal
selling), sales promotion usually operates on a shorter time line, uses a more rational
appeal, returns a tangible or real value, fosters an immediate sale, and contributes
highly to profitability.

In determining the relative importance to place on sales promotion in the overall
marketing mix, a small business should consider its marketing budget, the stage of the
product in its life cycle, the nature of competition in the market, the target of the
promotion, and the nature of the product. For example, sales promotion and direct
mail are particularly attractive alternatives when the marketing budget is limited, as it

H.R. Institute of Higher Education, Hassan.
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is for many small businesses. In addition, sales promotion can be an effective tool in a
highly competitive market, when the objective is to convince retailers to carry

Product or influence consumers to select it over those of competitors. Similarly, sales
promotion is often used in the growth and maturity stages of the product life cycle to
stimulate consumers and resellers to choose that product over the competition—rather
than in the introduction stage, when mass advertising to build awareness might be
more important. Finally, sales promotion tends to work best when it is applied to
impulse items whose features can be judged at the point of purchase, rather than more
complex, expensive items that might require hands-on demonstration.

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Statement of the Problem:-
At present in this competitive business world the milk industry has more brands in the
battle field facing stiff competition in every segment’s targeted. Even brand Nandini
is also facing stiff competition to retain brand in the market.
There are many players in the market in this industry and their own promotional
strategies where is to inducing the different consumer segment. Hence due to this it is
crucial to analyze the promotional strategies of Nandini and its competitors to
penetrate the targeted market.

In this juncture it has to identify its competitors in this market by bringing brand
awareness in the minds of consumers and also it has to cope up with the updated
advertising and sales promotional strategies.
Through this study, the main problem that it studies during this project work is to find
out the effectiveness of the reach of different sales promotion techniques to the
consumers and the awareness of brand among the consumers of Hassan district.

Objectives of the study:-
• To study the effectiveness of the various sales promotion.
• To study the brand awareness of Nandini milk and its milk products.
• To know the consumer response.

Scope of the Study:-
The main purpose of the study is to identify the awareness of branding system and
sales promotion program adopted by various producers engaged in the production of
milk products and in specific relation to Nandini products.
In order to know the Brand Awareness of Nandani milk and its milk products.
To study the reach of branding system and sales promotion programme of Nandini
products among the consumers of Hassan district.

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Research Methodology
The formidable problem that follows the task of designing the research project
is known as the "Research Design". The design of a quantitative research study
includes the method for collecting the data. The sample design and construction of the
data collection instrument.
1. Purpose of enquiry: The scope of the enquiry is to support the data required to
make study on “An effective study on promotional activities of Nandini Milk and it’s
Products”.
2. Scope of data: The scope of enquiry is limited to the study of the topic
concerned only.
3. Sources of data: The data collected through primary data.
A. Nature and type of enquiry: Non-official Non-confidential.
B. Direct: There is 100 degree of accuracy.

Sampling Design
A sample size of 100 respondents was covered. Random sampling procedure
of survey was conducted on the primary data. Respondents were classified on the
basis of their age etc. Respondents were interviewed at Few areas in Hassan City.

Sources Of Data Collection

The task of data collection begins after a research problem has defined & Research
design of plan cooked out. There are 2 basis ways of data collection.

Primary Data

 A detailed questionnaire was handed over to a chosen sample.
 Frequent Purchasers of Nandini Milk and its milk products.

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 Interaction with Customer.
 Discussion with KMF Marketing Manager and Assistant Manager in the
Department.

Secondary Data

 Product broachers.
 Previous annual report.
 Magazines & journals.
 Internet.

Techniques for Data Analysis;
Questionnaire method was used as research instrument for this study. Closed
ended questionnaires are used for the customers to an

Limitations of the Study;

 Time constraint has prohibited from going deep into the subject.
 The information obtained or the collection of data is limited.
 The study is purely academic.
 Due to time constraints the study is restrict to Hassan city only.
 The survey was conducted in this urban sector of respondents thus it
cannot be generalized.
 The information provided by respondents could be biased.

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Company Profile
2.1 Industry Scenario
Dairy is a place where handling of milk and its milk products is done and technology
refers to the application of scientific knowledge for practical purposes. Dairy
technology has been defined as that branch of dairy science, which deals with the
processing of milk and the manufacture of milk products on an industrial scale.

In developed dairying countries such as the USA, the year 1850 is seen as the dividing
line between farm and factory scale production. Various factors contributed to the
change in these countries viz., concentration of population in cities where jobs were
plentiful, rapid industrialization, improvement of transportation facilities,
development of machines etc., where as the rural areas were identified for milk
production, the urban centers were selected for the location of milk processing plants
and product manufacturing factories. These plants and factories were rapidly
expanded and modernized with improved machinery and equipment to secure the
various advantages of large-scale production. Nearly all the milk in the USA before
1900 was delivered as raw (nature) milk. Once pasteurization was introduced, it
developed rapidly. Mechanical refrigeration helped in the rapid development of the
factory system of market distribution.
Milk
Milk may be defined as whole, fresh, clear lacteal suretion obtained by the complete
milking of healthier milk animals. It represents the perfect food for man nearly than
any other natural food. An adequate consumption of milk can correct dieting
deficiencies for most people strong, healthy bodies. It is delicious and appetizing food
as well as being healthful.

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The major constituents of milk are water, fat, protein, lactose and mineral water. The
major constituents are phospholipids, sterols, vitamins, enzymes, pigments etc. The
true constraints are milk fat, casein and lactose.
Milk is absolutely essential for the welfare of the human race. The cow has been
rightly called, “The Foster Mother of Human Race” and she is found in most of the
civilized countries of the earth.

2.1.1 Asian Dairy Scene
With 60% of the world population, Asia accounts for only 20% of the global milk
production. The total world production of more than 500 million tonnes for a
population of about 4 billion amounts to and average annual per capita availability of
100kg. The corresponding figure for Asia is only about 27 kg and the consumption is
about 30kg. Some 10% of milk consumed in Asia is imported. In several Asian
countries, imports of dairy products, both as finished products in consumer packs and
in bulk for recombination in to milk have helped create a dairy market and a milk
processing industry.
The Asian countries have been producing over 96% of the world’s buffalo milk
output, estimated at 48 million tonnes, India accounts for more than 30% of it. The
recent formation of the Asian Buffalo Association will help overcome the neglect that
the buffalo has suffered for decades.

2.1.2 Dairy in India
In India, dairying has been practiced as a rural cottage industry since the remote part.
Semi-commercial dairying started with the establishment of military dairy farms and
co-operative milk unions throughout the country towards the end of nineteenth
century. During the earlier year, each household in those countries maintained its
family cow or secured milk from its neighbor who supplied those living close by. As
the urban population increase, fewer households could keep a cow for private use.
The high cost of milk production, problems of sanitation etc., restricted the practice,
and gradually the family row in the city was eliminated and city cattle were all sent
back to the rural areas.

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The Indian dairy industry has made rapid progress since independence. A large
number of modern milk plants and product factories have since been established.
These organized dairies have been successfully engaged in the routine commercial
production of pasteurized bottled milk and various western and Indian dairy products.
With modern knowledge of the protection of milk during transportation, it become
possible to locate dairies where land was less expensive and crops could be grown
more economically.

In India, the market milk technology may be considered to have commenced in 1950
with the functioning of the Central Dairy of Aarey milk colony, and milk product
technology in 1956 with the establishment of AMUL dairy, Anand. The industry is
still in its infancy and barely 10% of our milk productions under goes organized
handling.

2.1.3 History of Indian Market Milk Industry
• Organized milk handling was made in India with the establishment of Military
Dairy Farms.
• Handling of milk in co-operative milk unions established all over the country
on a small scale in early stages.
• Long distance refrigerated rail-transport of milk from Anand to Bombay since
1945.
• Pasteurization and bottling of milk on a large scale for organized distributed
was started at
Aarey - 1950
Calcutta(Haringhata) - 1958
Delhi - 1959
Worli - 1961
Madras - 1963
• Establishment of milk plants under the 3- year plans for dairy development all
over India. They were taken up with the dual object of increasing the national

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level of milk consumption and ensuring better returns to the primary milk
producer. These main aims were to produce more, better and cheaper milk.
In terms of percentages we have 51% of the Asian population.
Amul
A situation prevailed in the case of milk about 30 years ago; when the exploitation by
middlemen had forced the milk producers to sell milk at throw prices. The answer to
such a situation was found in developing a system that enables milk producers to own
and operate, not only their processing facility, but also the inputs, delivery machinery,
and the marketing of finished products.
The integrated approach first proved very successful in Kaira-the AMUL organization
and through the Operation Flood Programme, aimed to establish similar farmer’s

organizations in 18 districts in the country. The Programme when implemented did
face some preliminary problems, but these were overcome, so much so that when the
IBRD and World Bank came forward to finance dairy projects in Karnataka,
Rajasthan and Madhya Pradesh. The results were that 13 milk producers’ co-operative
unions were established. Based on the success of these 30 unions, bodies owned by
the farmers themselves. The other phase of dairy development, Operation Flood II,
being implemented to bring the total number of such district unions to 155, and cover
some 10 million farmers. The success of these 30 unions have further demonstrated
that problems can best solved if the agency implementing the programme is owned
and operated by the producers themselves, who employ the best professionals that the
responsibility of such an organization is not only to guarantee a remunerative market
for the rurally produced commodity by its member producers, but also guarantees a
package of input for enhancing production (milk) and ploughs back the profit for
further development. Again, in the case of milk, since marketing of the product was
largely controlled by middlemen/trade/cattle keepers/etc., the organized dairy was not
in a position to pay a better price to the milk producers. Market intervention was
therefore required to enable these dairies to supply milk to the consumers at
reasonable prices. This was the first time that food aid skimmed milk powder, and
butter oil in this case-was used to prime the pump of the modern dairies in four
metropolitan cities (Calcutta, Bombay, Delhi and Madras), and permit them to
demand on all much large scale. The funds generated through the sale of skimmed

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milk powder and butter oil were used to build up farmer’s organizations in the milk
sheds those supplies to these metropolitan cities.

2.1.4 Achievements of Dairy co-operatives in India
Dairy co-operative society is a basic organization unit functioning at the village level.
 Reach
The Dairy Co-operative network
• Includes 170 milk unions.
• Operates in over 285 districts.
• Covers nearly 1, 01,000 village level societies.
• Is owned by nearly 11 million farmer members.

 Milk Production
• India’s milk production increased from 21.2 million MT in 1968 to 84.6
million MT in 2001-02.
• Per capita availability of milk presently is 226 grams per day, up from 112
grams per day in 1968-69.
• India’s 4% annual growth of milk production surpasses the 2% growth in
population; the net increase in availability is around 2% per year.
 Marketing
• In 2001-02, average daily co-operative milk marketing stood at 134.23 lakh
litres, annual growth has averaged about 5% compounded over the last 5
years.
• Dairy co-operative now market milk in about 200 cities including metros and
some 550 smaller towns.
• During the last decade, the dairy milk supply to each 100 urban consumers has
increased from 175 to 473 liters.
 Innovation
• Bulk-vending-saving money and the environment.
• Milk travels as far 2200 kilometers to deficit areas, carried by innovative rail
and road milk tankers.

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• Ninety five percent of dairy equipment is produced in India, saving valuable
foreign exchange

2.2 Company Profile

HASSAN CO-OPERATIVE MILK PRODUCERS SOCIETIES UNION LTD, was
established with an aim to support small, marginal farmers and agricultural laborers
through dairy development. As the farmers are not sure of receiving a remunerative
price for their agricultural produce more and more farmers are taking up dairying as
their main occupation rather than subsidiary occupation for their livelihood. The milk
union is committed to accept all the milk offered by the milk producers in the milk
shed area and hence there is a considerable increase in milk procurement during
2004-05, 2005-06 & 2006-07. We at Hassan Milk Union believe that it is a social
obligation on part of the union to pay remunerative price to the farmers and hence we
have entered new and far off markets like, Pune and kolhapur in Maharastra,
Trivendrum and Kollam in Kerala

2.2.1 Background and Inspection of The Company:

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The Hassan Unit started its Dairy development activity during 1975 with the World
Bank Financial assistance under the guidance of Karnataka Dairy Development
Corporation.
During 1975 an integrated project was launched in Karnataka to restructure and
recognize the dairy industry on the co-operative principles and to lay foundation for
new direction in dairy development. Work on the first ever the World Bank aided
dairy development project was initiated in 1975. Initially it covered 8 districts of
Karnataka such as Mysore, Hassan, Tumkur, Dharwada, Belgaum, Shivamoga,
Chikkmagalore, and Kodagu.

Hassan Co-operative milk producer’s society union ltd. was set up to implement the
project by Karnataka dairy development co-operation (KDDC) in 1975. It was
registered on 30th March 1977and the operational jurisdiction of the union extended to
3 districts namely Hassan, Chikkamagalore and Kodagu.
ISO 9001:2000 certifications have been obtained for Quality, And HAMUL are in
the process of obtaining HACCP quality certification at on early date.

2.2.2 Nature of Business Carried

 Hassan milk union carried on the business of producing and marketing milk
and milk Products, such as Peda, curd, Ghee, Buttermilk.

Hassan milk union procuring surplus milk in the rural area and provide input activities
to dairy co-operative societies like artificial insemination, supply cattle feed, animal
health care programs for the upliftment of the producers. It purchased some products
from KMF viz Nandini milk-toned bottle, Badam powder, Jamoon mix, Nandini bite,
Skimmed milk powder (SKM), Mysore pak etc. All purchased and produced products
were sold by its own.

2.2.3 Vision and Mission

VISION

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The Union thrives hard to adopt the modern & eco friendly technologies to produce
milk & milk products of international standards to make our presence prominent in
the global market.

 KARNATAKA MILK FEDERATION CO-OPERATIVE SOCIETY wants to
develop their milk union like AMUL CO-OPERATIVE SOCIETY.
MISSION
Hassan Milk Union aims to render the best service at nominal cost to its members to
increase milk production and produce good quality milk by paying remuneration price
throughout the year, thereby improving their economic and social condition while
ensuring high quality milk & milk products to the delighted level of the consumers at
competitive price.

 To increase their sales from 60000-80000 liters per day by next five years
 To increase quality of milk and fulfill the needs of the customers.

2.2.4 Goals & Objectives:

 The milk union was started on 4th June 1975; they want to develop their milk union
like AMUL CO-OPERATIVE SOCIETY.

 To increase quality of milk.

 To increase their sales from 70,000-80,000 liters per day by next 5 years.

 Increase the milk dealers parlours from 23-40.

 Increase the sales by conducting many programs like consumer information
programs, consumer dairy visiting programs, hotel owner information program etc.,

To increase the members of the union to 49,000.to regularly supply the toned, double
toned NANDINI milk to all the cities according to customer needs.

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2.2.5 Ownership Pattern

 Elected Body:
The Co-operative society members are eligible for electing the President and other
governing members. The President heads the elected body. The elected body controls
the societies and they keep a close watch on the working of the Co-operative societies
and HAMUL.

 Selected & Administration Department
The employees working in the organization under HAMUL constitute the selected body.The
qualified candidates are selected to the organization. This involves both Elected and Selected
bodies. The administration department decides all the technical, production, procurement etc. it
also involves the pricing and accounting section. They are allotted with specific work on their
qualification likewise, Technical Officers, Marketing officers, managing directors etc. There are
around 415 employees working in all the sectors of organization.

• The head of the selected body is the Managing Director; at present Ranganath
• Elected body is in the administration till its fixed tenure whereas the selected
body is till the retirement age fixed by the Govt.

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2.4 Product Profile

The main product of HAMUL is milk that is processed in number of different
categories based on their fat division is

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Sl.No. Products Qty. of Fat & SNF Quantity Price in Rs
1. Toned Milk 3.5% & 8.5% 500Ml- 1ltr 9.30/500Ml
2 Standardized Homogenized Milk 4.5% & 8.5% 500Ml- 1ltr 11.30/500Ml

2.4.1 Nandini Toned Milk:
It is a pure milk and most selling milk in Karnataka. It contain 3.0% Fat And
8.5%SNF. It is available in 500 ml and 1000 ml packs.

Karnataka's most favorite milk. Nandini Toned Fresh
and Pure milk containing 3.0% fat and 8.5% SNF.
Available in 500ml and 1ltr packs.
Available in 500ml and 1ltr packs

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2.3.2 Nandini Homogenized Standard Milk (Shubham):
This pure milk contains 4.5% fat and 8.5% SNF. It is available in 500 ml and 1000 ml
packs. This milk is rich creamier and tastier. It is ideal for preparing home mode
sweets and savories.

Nandini Homogenized Standard Milk Containing 4.5% Fat
and 8.5% SNF.(Solid Not Fat) A rich, creamier and tastier
milk, Ideal for preparing home-made sweets & savories.
Available in 500ml. and 1 ltr packs.

2.3.3 Curd:
It is thick and delicious. It is available in 200 grams, 500 grams and 1000 grams
sachet etc.The price list of Curd: At the end of April, 30,2010

Sl No Particular Packing Quantity Price in Rs
1 Nandini Curd Sachet 200 grams 6 -00
2 Nandini Curd Sachet 500 grams 12 -00

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Nandini Curd made from pure milk. It's thick
and delicious. Giving you all the goodness of
homemade curds.
‘Available in 200gms and 500gms sachet.

2.3.4 Butter Milk:
Butter Milk is a refreshing health drink. It is made from quality curds and is blended with fresh
green chilies, green coriander leaves, asafetida and fresh ginger. Buttermilk is packaged in 250ml
packet.

Nandini spiced Butter Milk is a refreshing health drink.
It is made from quality curds and is blended with fresh
green chilies, green coriander leaves, asafetida and
fresh ginger. Nandini spiced butter promotes health and
easy digestion.
It is available in 200 ml packs and is priced at most
competitive rates, so that it is affordable to all sections
of people.

2.3.5 Nandini Ghee:

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Ghee is made from butter. It is fresh and pure with a
delicious flavor. Hygienically manufactured and
packed in the goodness of pure ghee. It has a got a
shelf life of 6 months at ambient temperatures. It is
available in 200 ml, 500 ml, 1000 ml sachet, 5 liter
tins and 15 kg tins

Particular Packing Quantity Price in Rs
Sl No

1 Nandini Ghee Sachet 200 ml 0062 - 00
4 Nandini Ghee Bulk Tin 15 kgs 4695 - 00

2.3.6 Peda:

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Peda is very delicious made from pure milk. It can be stored for 7 days and available
in 250 grams containing 10 pieces each
Price list of Peda: At the end of April 30, 2010

Particular Packing Quantity Price in Rs
Sl No
1 Nandini Peda 10 grams Box 100 grams 26 -00
2 Nandini Peda 25 grams Box 250 grams 60 -00
3 Nandini Peda (single) Single 25 grams 06 -00

No matter what you are celebrating! Made from
pure milk, Nandini Peda is a delicious treat for the
family.
Store at room temperature approximately 7days.
Available in 250gms pack containing 10 pieces
each.

2.4 Achievements

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Achievements and Awards

HCMPSUL has got to 4 awards
Energy Conservation Award
Received on 14th Dec 2004 from Dr. Manamohan Singh, Prime Minister of India.
Received on 14th Dec 2005 from Dr. A.P.J. Abdul Kalam, President of India.

Received second prize in the year 2006
Received third prize in the year 2007

2.6 SWOT Analysis of HAMUL

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 STRENGTHS
• Huge Demand
There is a huge demand for Nandini milk and milk products in the market. Milk is
very much needed for the children and the people to get good calories, vitamin and
nutritional. There is increased population in India, hence there is increased demand
for milk products.
• Availability of Milk
Union can easily get required milk with less cost from the rural area according to the
need. Most of the farmers in Hassan district are having at least 2 or 3 cows or
buffaloes in their home. Hence there is a good availability of milk for HCMPSUL.
• Brand Nandini
Nandini milk, Nandini ghee, Nandini curd etc Nandini products are well branded in
the market because of their quality.
• Man Power
There is well experienced, professionally trained technical employees are working in
the company with minimum experience of 15 years. It helps organization to maintain
the quality of the product.
• Location
Hassan milk union is located in industrial estate beside NH-48 where people can
easily found the company. It reduces the cost of transportation and leads to publicity
of company name.

 Good quality control
 On time delivery
 Skilled employees
 Standardized products
 Easy access to loans from National Dairy Development Board
 Adaptability to changing technology

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 WEAKNESS
• Inadequate Transportation
Bad condition of roads and inadequate transportation facilities makes milk
procurement problematic.
• No Cattle Form
HCMPSUL has no cattle form in its own, it becomes one of the major weakness of
the company.
It focused more only on rural segment and very less concentration on urban area.
New employee has less social security eg: accommodation is not provided to new
employees where in it restricts their stay for a long period.
• Limited advertisements
No credit business

 OPPORTUNITIES
• Export
There is demand for Nandini Products in other states viz Kerala, Goa. So it can export
its product to those states along with Thamilnadu and Andrapradesh.
• New Product Innovation
It can innovate new products like Khoa, Ice cream, Pannier and dairy Sweets in the
same product line.
• Employment
It provides more employment opportunity to the people. Currently there are 500
employees are working in the organization.
Young, enthusiastic employees put their best efforts, which results in the growth of
organization.
The brand , image of the firm helps it to enter new areas quickly.

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 THREATS

• Market uncertainty
There is a price fluctuation in the market, it may leads to decrease the demand and
there by reduction in profit.

• Competition
Competitors are coming up with similar product, this is the main threat posed by the
external environment.
 Many private firms have entered into
 Manufacturing of dairy products, there
 Is a tough competition for Nandini
 Like AROKYA, JERSY, JENUKAL and many more.

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2.7 Functional Areas

 Procurement Department

The procurement and input department is concerned with collection of milk from
various DCS.

• To follow up daily procure schedule as per the plan.
• To collect quality of milk by checking fat content.
• To maintain good relationship with DCS.
• To send procured milk to production unit.

 Milk Procurement Procedure

The production department is responsible for procurement of raw milk. It consists of
two wings called purchase and stores. Purchase wing is processing of raw milk and
stores wing is receiving and issuing the same to the user department.
Indent is raised by the user department and is registered at stores after verifying the
availability of stock at stores. After registration, the indent is forwarded to purchase
wing for procurement. At the time of registration of indent if stock is available, it is
issued to the user department and the indent is cancelled.
On receipt of indent the purchase wing lends enquires to various suppliers who
normally supply the milk and milk products. Then these suppliers submit their offers.
After receiving the offers, a comparative statement is made and forwarded to the
general manager for recommendations. The General Manager chooses a most suitable
offer for placement of purchase order.
On receipt of purchase order, the supplier lends the milk and milk products along with
the bills. The products are received at receipt section of the stores and are verified
against the specification laid in purchase order.
Then products/goods inspection note is prepared and forwarded to the GM department
for inspection of the milk & milk products supplied. Then the GM inspects the
material with quality experts at stores and accepts the same on reject depends upon
the quality of products.

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If the material is accepted, produce/goods receipt note is prepared and forwarded to
account section and the material is stored in specified location. If the product/goods
rejected then product/goods receipt note as well as reject note prepared and forwarded
to accounts section
for making payment to give information to the supplier about the rejection whenever
GRN is prepared the stock of the particular items gets update in computer.
The rejected producers/goods are returned to the suppliers.
Whenever the union required milk and milk products or any materials they approach
stores along with issue voucher against which product/goods issued and consumed.
Periodic stock verification is conducted at stores to check the inventory.

MILK CANS RURAL SOCIETIES COLLECTING MILK

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2.8 Product Production Process

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Raw chilled Milk Raw Milk Returned Milk
from CCS

Raw Chilled
Milk

Pasteurization

Pasteurized whole
Milk

Separation Skim Milk Toned Milk Homogenization

Cream
Standardized
Homogenized
Butter Milk

Prestratification
Packing

Ghee

Packing Cold Storage

2.9 Production Department

Duties and Responsibilities of Production Manager

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1. He shall be overall in charge of production plant section.
2. To allot, monitor and supervise the work of the subordinates.
3. To make correspondence and maintain all files/documents of products.
4. To recommend the leave of his subordinates and make alternate arrangements
during their absence on leave period.
5. He shall ensure and implement cost service measures to production section.
6. To plan and implement the disposal of excess milk in bulk sales and if
shortage, arrangement to get milk from inter dairy as per requirements.
7. He shall plan well in advance requirements of chemicals/detergents on any
other material of the production section.
8. He shall take care of entire plant and machinery.

Processing Of Milk:

Procuring & Can Washer Machine

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The cans from the trucks are introduced to procuring & can washer machine, during this process
the machine automatically opens the lid of the milk can and milk is collected in a chilling tank.
Then the raw milk is pre chilled at 6-8% to arrest the growth of microorganisms. The milk cans
are automatically washed and placed outside. Again the trucks are weighed to get the exact value
of the raw milk obtained.

Pasteurizing Unit
The chilled & tested milk is been further sent for processing. Generally, milk is boiled
& cooled in the houses to preserve it from spoiling, this method is known as
Pasteurization. The same is introduced in HAMUL, there are two pasteuriser, which
work for 24 hours and 365 days. The raw milk brought in, is heated up to 72.5 degree
Celsius, for 15 minutes and immediately it is cooled to 4 degree Celsius. This method
will kill the pathogenic to microorganisms, which would spoil the milk but retains the
Lacto Bacillus (bacteria which converts milk to curds) and the pasteurised milk is
further sterilized by boiling up to 140 degree

Celsius other essentials like proteins, fats, vitamins, carbohydrates etc are remained.
That makes it a complete food.

In pasteurization, the raw milk is brought in through pipes, milk is heated through steam and it is
cooled using ammonia as a cooling agent.
The fat in the pasteurized milk is 4.1%; it is separated in a machine called Cream Separator. The
division of fat is done for the preparation of varieties of milk based on fat content.

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Packaging & Storing:

Packaging Machine
The processed milk and the byproducts manufactured are hygienically packed. Milk of different
varieties and quantities based on the fat content is pre set in the auto-packaging machine. The
pouch used for packaging is manufactured by KMF at Pouch Film Plant at Munnekolalu,
Marathhalli in Bangalore. The pouches used are poly based and are re-cycle able. It prevents
milk from spoiling. The packaged milk is bacteria free and is ready to use.

The packed milk and its by-products are stored in 8 degree Celsius in refrigerating
room using ammonia compressor. The unpacked extra milk is condensed to SNF

(Solid Not Fat) that is SKIMMED MILK. The balance milk is sent to Dairies in
Bangalore, Mangalore and Thrivendrum.

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2.10 Area of Operation

Companies are always looking to carry business, where the required
resources are easily available. Area of operation plays a vital role while
fixing price, there by development of the company. Because if the area has
suitable environment, raw materials, skilled labors for less wages, then it
will reduces the cost of production.

Hassan milk union carries out business at regional level that includes 3
districts viz Hassan, Chikmagalore, and Coorg.
Hassan districts cover eight taluks namely Channarayapatna, Hassan,
Arasikere, Sakaleshpur, Belur, Alur, Arakalagudu, and Holenarasipur. It
collects the milk from various villages of these eight taluks.

Chikmagalore district covers Chikmagalore, Kuduremuka and Tarekere.
Kodagu districts cover Somavarpete, Virajpete and Madikeri. In Kudige
dairy totally 5000 LPD is renovated at the cost of 251 lakhs with assistant
of national dairy development board.

Totally Hassan milk union covers 2583 villages, 3 districts, 65 milk
procurement routes with average procurement 2, 68,417 kgs/day at present.
The total local sales are 90,000LPD, and about 2, 50,000 LPD to other
states.

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2.11 Activities of Hassan Milk Union:

 Organization of Dairy Co-Operative Societies
As at the end of June 2009, 1085 societies have been registered of which 1009
are functional. Out of functional societies 268 are women societies, 124 step
women societies are functioning which results in enhancing the socioeconomic
development of women.

 Membership Enrolment
As on 30th June 2009 1, 61,385 members have been enrolled of which 67,102
are small farmer, 44,264 are marginal farmers, 20,384 are agriculture
labourers, and 28,294 are other big farmers. Out of the total 10,587 belongs to
SC members, 3,984 belongs to ST members. 48,302 members belong to
women members.

 Milk Procurement Activities

The present average milk procurement from 1009 milk societies is around
4,39,921 kgs/day. During the month of June the average procurement
/DCS/day is 435 kgs and the average transportation cost per kg of milk
procurement is 30 paisa. The average fat is 4.06% and average SNF is8.50%.

2.11.1 Input Activities:
 Veterinary Facility

Covered 638 societies under veterinary route, 6 mobile veterinary routes
treating an average of 4,500 cases per month. There are 5 emergency routes in
operation and treating around 400 to 450 cases per months. There are 340 first
aid centres are also working. Union is providing SAF kit to the animals for the
prevention. (Or) de-warming. Foot and mouth vaccination is also providing
for controlling foot and mouth diseases.

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 Artificial Insemination
To improve the breeding facility there are 16 single AI centres and 77 Cluster
AI centres are working in the union area. These centres are covered around
90% of the DCS. Averages of 20,000 inseminations are carrying out every
month. 3815 male cows and 4315 female total 8130 cross breed cows have
been born during June 2009.

 Feeds and Fodder
The union is uncovering the farmers and the producers at the village level in
growing modernized fodder. Ex. union is suppling CO1, CO2 and Napier
roots and SSG seeds , cow pea seeds and seasonal seeds to the producers. The
union is also arranging straw treatment demonstration, silage demos at village
levels. The union is supplying around 3200 metric tones of cattle feeds and an
average 6000 kgs of mineral mixtures to the society members. Nearly 98% of
the functional societies have been covered under cattle feed sales.

 Training facilities

Training will be given to the milk society secretaries, testers and management
committee members. DAM (dairy animal management) is given to the
producers. This training is given in central training institutes, Mysore, owned
and managed by KMF Bangalore.

2.11.2 Other programmes:

 Group insurance:-

With the co-ordination of the general insurance company by paying premium
to the insurance company. The DCS providing insurance coverage.

 Step programme:-

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Under this, women members have been enlightened with education, nutrition,
legal matters. SHG (self help group) the main purpose of step programme is to
provide better socio-economic status to the women members

 Yashaswini health programme:-

Under this scheme, those who have become members of this scheme well get
medical benefits like operation charges.

 Total Quality Management (TQM);-
The union has encouraged clean milk production programme at village level.
The union has obtained ISO 9001:2000 certifications. There are 13 bulk milk
coolers and 43 automatic milk collection centres which are functioning in the
milk societies. Union activities have been computerized partially and during
2008-2009, it is spending around 64-70 lakhs towards computerization.

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2.12 Marketing Department

 Duties and Responsibilities of Marketing Officers

1. To fix necessary targets to the retailers, wholesalers, depots, day counter and
milk parlours.
2. To take necessary actions to appoint retailers/DS/MP in the new extension.
3. To adopt necessary extension programmes for consumer awareness.
4. To arrange for consumers meet/fairs/exhibitions and to take participation in
such programmes to improve nandini milk sales.
5. To collect information about private competitors milk sales and to take
necessary action to curtail the private dairy milk sales.
6. To arrange for the retailers meeting at least once in 6 months and to discuss
about the problem.
7. To inspect the milk parlours regularly and to keep watch on sale of other
products.
8. If the parlors contractors are found to sell products other than Nandini
products, action should be taken.
9. To keep close watch on the milk distribution vehicles movement of routes and
to check that the milk and milk products reach the retailers with in the
described time.
10. To conduct distance survey of milk distribution route and to certify them
regularly.
11. To take necessary action to make recoveries if any due from the retailers.

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To collect the information pertaining to the choultaries, hostels, public institutions,
sweet stalls, Bakeries, Ice cream parlours, hotels, and conduct necessary extension
programme to increase the sales.

Marketing department plays a vital role in determining the future abilities of the
company. Its main objective is to distribute goods from producers to the customers. It
distributes milk to consumers and also provides consumer education through ad
campaigns and participating in various exhibitions.

• To plan marketing programmes.
• To analyze marketing opportunities.
• To develop marketing strategies.
• To connect the consumer with the products.

2.13 Major Competitors Profile

Market Share

Nandini

Loose milk

Milky
wave
Arokya

 Competitors Information

There are many competitors viz., Milky Wave, Arokya, Jersy, Jenukal, Kaveri,
JT Milk, etc are producing similar product in same area with similar strategy.

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2.14 Future Growth and Prospects

• Envisaged to establish total of 900 DCS by the end of 2010.
• Planned to establish artificial Insemination centers. [AI]
Single AI centers 40
Cluster AI centers 80
For this they are expected expenses of Rs 16800 for single AI centers, and Rs
201600 for cluster centers
• The expected maize seed productions are 90 metric ton.
• Cowpea production 1.5 metric tons, 2500000 of route slips.
• The procurement is expected to increase to 34450 kegs’. Per day.
• The local sales are expected to 108610 LPD and bulk sales are 41410 LPD.
• Cattle food sales will also be increased to 96 metric ton.
• In addition to strengthening of market, network quality assurance programme
and milk enhancement activities will be underta

2.15 ANNUAL MARKET PLAN FOR DEVELOPMENT
ACTIVITIES FOR THE YEAR 2009-10

Hassan milk union Ltd establish in the year 1977 has been catering efficiently to the
needs of the urban and semi urban consumers by supplying pasteurized and assured

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quality “Nandini” milk and milk products in the jurisdiction covering Hassan,
chikmangalure and Kodagu districts.
Over the years, the union has been taking many steps to meet the changing needs of
consumers, the availability of milk variants and new milk products have been
produced for customer requirement.
Priority areas for the development of liquid milk market in the union area are
identified and necessary action plans have been drawn for implementation during the
year 2009-10.The key strategies planned for 2009-10 are as follows

 INCREASING THE AVAILIBILITY OF NANDINI MILK THROUGH OUT
THE DAY IN THE MARKET:

 ENHANSING EFFECTIVENESS OF CONSUMER AWARENESS
PROGRAMME.

 TEAM CONCEPT FOR MARKET DEVELOPMENT.

 CREATION OF GRIVANCE REDRESSAL CELL.

 CONSTITUTING EFFECTIVE REPLACEMENT/LEAKAGE POLICY.

 CONSTITUTING A CORE GROUP FOR SOLVING DAY TO DAY
PROBLEMS.

 PROMOTING CHANNEL MEMBERS.

 ELICITING CONSUMER FEED BACK FOR QUALITY ASSURANCE.

 SALES PROMOTION ACTIVITIES.

 INCREASING THE AVAILABILITY OF NANDINI MILK THROUGH OUT
THE DAY IN THE MARKET

a) By expanding the retail market in the union Area.

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• Introduction of an adhoc milk distribution route to Hassan city from morning 6.00
A.M to 4.00 P.M. at regular intervals to cater to the retailer needs after normal
vending hours.

• Supply of loose milk in 40Lts cans to hotels, choulteries, and institution at
concessional rates.

• Identifying the uncovered areas of distribution and appointing new retailers in
such areas to expand the local market.

• Introduction of Adhoc day route exclusily for Milk products distribution in the
union area.

b) Strengthening the existing milk parlour, depots and day co
There are totally 548 retailers, 18 milk parlours, 14-day counters and 16 depots
operating in the union area. It is decided it strengthen providing Bottle coolers to
retailers at the rate of 50% cost and free supply of insulated boxes and
introduction of insulated Transport vehicles to door step of retailers and extended
hours of milk supply
c) Introduction of Full cream m Milk (500Ml)Sachet in the Market during first
quarter in 2009-10.

 ENHANCING EFFECTIVENESS OF CONSUMER AWARENESS
PROGRAMMES:
To persuade consumers, who are purchasing loose milk, or Competitors milk to
purchase “Nandini” milk. This objective is most suitable for our union since their
market share is less
To create awareness among existing and prospective consumers about:

a) The organization.
b) Quality products and Services available.

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c) Dairy plant activities-hygienic milk handling practices of nandini vis a vis loose
milk
d) Health hazards of consuming adulterated milk.
e) Quality and hygienic aspects of sachet milk and milk products .
f) Dairy visit by school children, consumers and mahila mandal’s
g) Education programmes on “Milk and Health” at schools and public places.

 TEAM CONCEPT FOR MARKET DEVELOPMENT:
In ordered to achieve highest sales target, it has been decided to constitute functional
teams.
This team will conduct the following activities.
a) Visit the market along with marketing staff for market development and to increase
sales.

b) Organize door to door campaign

c) Arrange quality testing at selling point/Public.

d) Organize dairy visit to school children, housewife’s, mahila mandals & consumers.

 CREATION OF GRIEVANCE REDRESSAL CELL:

This system to be implemented with the help of following activities.
a. A decided Toll free telephone to the marketing section of Hassan and Kudige Dairy
would be provided for benefiting channel members.

b. Further, the telephone numbers and contact person’s name to be published in leading
local daily News papers and circulated to all the agents’ day counters.

c. The complaints to be addressed immediately and would be rectified within 24 hours.

 EFFECTIVE REPLACEMENT / LEAKAGE POLICY:
The fallowing measures are planned to overcome the leakage problem.
- Film quality testing programmes
- Focus on discussions
- Segregating leaky pouches at dairy dock before dispatch

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- Proper Monitoring of Packing Machines
- Storing in required temperature before dispatch
- Taking proper care during transport to avoid damage.
 CONSTITUTING A CORE GROUP FOR SOLVING DAY TO DAY
PROBLEMS:
A core team constituting of officers from plant, quality control, marketing and
accounts have been formed to implement the strategies of SMP for implementation.
This team would sit every day for 15 minutes with Manager (dairy) and thrash out
problems faced by the marketing staff.
Problems noticed and action initiates are to be recorded every day. And appraise the
M.D in week and conduct review meeting once in a month
 MOTIVATING THE CHANNEL MEMBERS:
A system to motivating and educate the channel members has been proposed for
increasing the milk sales. A systematic awareness campaign would be organized and
all the Nandini retailers will be contacted. This is planned by meeting them regularly
and inviting suggestion from them on a regular basis. Retailers meeting will be
conducted once in 6 months. Higher milk sale retailers in a particular districts route
will be rewarded.
 ELICITING CONSUMERS FEEDBACK FOR QUALITY
ASSURANCE:
By preparing a set of questionnaire and eliciting the fees back from the customers,
will get us information about customers’ perception on Nandini milk and milk
products, Quality, Packaging, and pricing etc.
By conducting this will get the results from the customers, in case if these are any
problems we can rectify it. We can do this by putting few questions to the customers
asking about the quality, price shelf life packing, satisfaction etc. By this we can also
create awareness about the brand. And get the feedback about competitor brands also
in the market.

 SALES PROMOTION ACTIVITIES:
Sales promotion is a marketing activity that provide extra value or incentive to sales
force , distributors, and the ultimate consumers can stimulate immediate sales .
a) Group Insurance Scheme Extended to Retailers:

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The proposal of providing Group Insurance facility to retailers which is in
existence during 2004-05 for a period of 3 years is continued during the
present year.

b) Loose Milk Sales to Hotels /Choulteries / retailers:

It is proposed to introduce loose milk sales (toned milk and curds) Rs15/- and
Rs 19/-/lLtr. Through aluminium milk cans of 40 liter. And 20 ltr. Capacity
only to hoteliers and other directly

c) Brand Advertisement, Vehicle and Wall painting, Radio programmes and
Awareness programmes will be continued during 2008-09 also .

d) Supplying posters , flex boards glow sign boards, tarpaulin bags organizing
retailers tour programme etc.

Review of Literature
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Promotion:-
The word promotion, originates from the Latin word “promovere”, the meaning is “to
move forward” or to advance an idea. The aim of production is sales. Sales and
promotion are two different words and sales promotion is the combination of these
two words. Sales promotion methods aim to capture the market and increase the sales
volume.
Sales promotion consists of a diverse of innovative tools, mostly short term, designed
to stimulate quicker or greater purchase or particular products/services by the
consumers are the trade. Today sales promotion has been accounted for 60% to 70%
of the combined budget. Sales promotion expenditure has been increasing 12 annually
compared with advertising in of 7.6%.
Sales promotion tools vary in their specific objectives. A free sample stimulates
consumer trail and while a free management advertising service cements a long-term
relationship with a retailer. Sales promotion often attracts brand switchers, because
users of other brands and categories do not always notice or act on a promotion.
Brand switchers are primarily looking for low price, good values or premiums. Sales
promotions are unlikely to turn them into loyal brand users. In markets of high brand
dissimilarity, sellers use incentive type promotions to attract new customers, to
reward loyal customers and to increase the repurchase rates of occasional users. Sales
promotion yields faster responses in sales than advertising.
3.1 Sales promotion has dual objectives :-
To increase buying response by ultimate consumers
To increase selling efforts and intensity by dealers as well as by sales a personnel
To capture the major share of the market
To meet the competition of other firms
To inform the public about the new product and its specialties, attraction and
advantages
To create favourable attitude towards the product
To create additional talking points to sales persons
To establish and maintain communication with large market segments

Sales promotion includes those sales activities that supplement both personal selling
and advertising to co-ordinate them and help them make effective such as displays

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shows and expositions, demonstrations and non-recurrent selling efforts not in
ordinary routine.
3.2 Marketers take sales promotion activities for the following reasons:-
For introducing new product
For overcoming unique competitive situation
For unloading accumulated inventory
For getting new accounts
For persuading dealer to buy more/increase size of orders
For retrieving cost accounts

3.3 Role of Promotion
To communicate with individuals, groups or organizations to directly or indirectly
facilitate exchanges by informing and persuading one or more audiences to accept an
organization's products.
Promotion and Society
Marketers need to communicate, therefore need a medium to facilitate
communication.

• TV
• Newspapers
• Radio
• Magazines

Promotion Involves disseminating information about a product, product line, brand,
or company. It is one of the four key aspects of the marketing mix. (The other three
elements are product marketing, pricing, place.)

Promotion is generally sub-divided into two parts:

• Above the line promotion: Promotion in the media (e.g. TV, radio,
newspapers, Internet, Mobile Phones, and, historically, illustrated songs) in
which the advertiser pays an advertising agency to place the ad

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• Below the line promotion: All other promotion. Much of this is intended to be
subtle enough for the consumer to be unaware that promotion is taking place.
E.g. sponsorship, product placement, endorsements, sales promotion,
merchandising, direct mail, personal selling, public relations, trade shows

The specification of these four variables creates a promotional mix or promotional
plan. A promotional mix specifies how much attention to pay to each of the four
subcategories, and how much money to budget for each. A promotional plan can have
a wide range of objectives, including: sales increases, new product acceptance,
creation of brand equity, positioning, competitive retaliations, or creation of a
corporate image.

The term "promotion" is usually an "in" expression used internally by the marketing
company, but not normally to the public or the market - phrases like "special offer"
are more common. Getting the marketing mix right for your product or service means
you are covering all of the important bases in your marketing campaign. Here is a
definition of marketing mix and a description of its main components.

The term marketing mix refers to the primary elements that must be attended to in
order to properly market a product or service. Also known as The 4 Ps of Marketing,
the marketing mix is a very useful, if a bit general, guideline for understanding the
fundamentals of what makes a good marketing campaign. Here is a brief description
of each component of the 4 Ps of the marketing mix.

Product: The marketing mix concept has its roots in the 1950s U.S. corporate
marketing world, and the practice of marketing has obviously evolved tremendously
since this term was invented. One of the changes is that there are a lot more services
available nowadays, such as those available online. Also, the distinction between
product and service has become more blurry (e.g., is a Web-based software
application a product or a service?). Either way, product here refers to products or
services. The product or service you offer needs to be able to meet a specific, existing
market demand. Or, you need to be able to create a market niche through building a
strong brand.

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Price: The price you set for your product or service plays a large role in its
marketability. Pricing for products or services that are more commonly available in
the market is more elastic, meaning that unit sales will go up or down more
responsively in response to price changes. By contrast, those products that have a
generally more limited availability in the market (but with strong demand) are more
inelastic, meaning that price changes will not affect unit sales very much. The price
elasticity of your product or service can be determined through various market testing
techniques.

Place: This term really refers to any way that the customer can obtain a product or
receive a service. Provision of a product or service can occur via any number of
distribution channels, such as in a retail store, through the mail, via downloadable
files, on a cruise ship, in a hair salon, etc. The ease and options through which you
can make your product or service available to your customers will have an effect on
your sales volume.

Promotion: Promotion is concerned with any vehicle you employ for getting people
to know more about your product or service. Advertising, public relations, point-of-
sale displays, and word-of-mouth promotion are all traditional ways for promoting a
product. Promotion can be seen as a way of closing the information gap between
would-be sellers and would-be buyers. Your choice of a promotional strategy will be
dependent upon your budget, the type of product or service you are selling, and
availability of said promotional vehicle.

Marketing has come a long way from the 4 Ps of yesteryear, and yet understanding
this marketing mix is for your product or service remains very relevant today. The
marketing mix serves as an excellent touchstone for continually checking that you are
covering all of the bases in your marketing campaign.

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3.4 Nine elements to the communication process
Sender C and Receiver Target Market are the major parties in the communication
process.
Message New Car, Cirrus, comfort of a Lexus and handling of a BMW for less money
and the media TV, direct mail, Brooks Brothers etc are the major communication
tools.
Last element is Noise in the system, more noise with non-personal communication
Sender needs to know:

• What audiences they want to reach
• What responses they want.
• How the target audience decodes messages
• What media will effectively reach the target audience

Scope and importance of sales promotion:

o 323 billion coupons were distributed 1993 nationally annually
(3,200/household), only 2.3% are redeemed.
o 9000 trade shows containing 10 exhibits or more/year. New York auto
show attracts more than a million people per year.
o $15-20 billion/year spent on point of purchase material in stores.

Why?

o companies are looking to get a competitive edge
o quick returns are possible for short term profits
o more consumers are looking for promotions before purchase
o channel members putting pressure on mf. for promotions
o advances in tech. make SP easier (ie coupon redemption)

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3.5 Sales Promotion Opportunities and Limitations

o Increase in sales by providing extra incentive to purchase. May focus
on resellers (push), consumers (pull) or both.
o Objectives must be consistent with promotional objectives and overall
company objectives.
o Balance between short term sales increase and long term need for
desired reputation and brand image.
o Attract customer traffic and maintain brand/company loyalty.
o Reminder functions-calendars, T Shirts, match books etc.
o Impulse purchases increased by displays
o Contests generate excitement esp. with high payoffs.

Limitations

o Consumers may just wait for the incentives
o May diminish image of the firm, represent decline in the product
quality.
o Reduces profit margins, customers may stock up during the promotion.
o Shift focus away from the product itself to secondary factors, therefore
no product differential advantage.

3.6 Major consumer promotional tools:-
Coupons: coupons are supplied along with a product. It is a certificate that reduces
prices. Coupons can be mailed, enclosed in the packets or printed in the
advertisements.
Samples: Free samples are given to consumers to increase the product. These are
given to the people in the hope that they will buy the goods when they are satisfied
with the sample.
Money refund offers: If he purchaser is not satisfied with the product, a part or all of
the entire purchaser’s money will be refused.
Premium Offer: It is a temporary price reduction, which increases the instinct of the
buyers. Products are offered free or at a reduced cost as an inducement for purchasing.

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Contests: The customers are asked to state in a few words why they prefer a
particular product. To enter, the consumer must purchase a product and submit the
evidence with the entry forms to contests, for the winner attractive prizes are given in
the form of cash or valuable articles.
Demonstration: It is the instructions to educate the consumers in the manner of using
products. It is arranges at the retail, store or in trade fairs.
Price off Offers: It stimulates sales during slump reasons. It gives a temporary
discount to the customers.
3.7 Dealer’s promotion tools:-
Price off/off list: a price off is a straight discount of the list price on each case
purchased during a stated time period.
Allowance: An allowance is an amount offered in return for the retailers agreeing to
feature the manufacturer’s product in some way.
Free Goods: Free goods are offers of extra cases of merchandise to middlemen who
buy a certain quality or who feature a certain flavour or size.
Dealer’s contest: This is an indirect way of boosting the sales. This type of contest is
conducted at the level of retailers and wholesalers.
Price deals: Apart from the regular discount, special discount are also allowed to
dealers for a special quantity of purchased.
Co-operative advertising: Dealers spend money in advertising manufacturer’s
product with the consent of manufacturers.

3.8 Sales force promotion tools:-
Trade shows and convention: Industry associates organize annual trade shows and
conventions
Bonus to sales force: The manufacturers set a target of sales for a year. If the sales
force sells the product above the targeted sales, bonus is offered to them.

Sales contests: A sales contest is a contest involving the sales force or dealers, aimed
at inducing them to increase their sales results over a stated period, with prizes going
to those who succeed.

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Specialty advertising: It consists of useful, low cost items given by sales people to
prospectus and customers bearing the giver’s name and address and sometimes an
advertising message.

Salesmen meeting and conference: the idea behind this is to educate, inspire and
reward salesmen. Encouragement is given to them during the discussion.

 Brand:
Brands are names generally assigned to a product or service or a group of
complementary products while a corporate image covers every aspect of the company.
Brands are drivers of competitive edge. “A successful brand is a name, symbol,
design, or some combination, which identifies the ‘product’ of a particular
organization as having a sustainable differential advantage”

 Branding:-
• It is the practice of giving a specified name to a product or group of products
of one seller branding is the process of finding and fixing the means of
identification naming a product like naming a baby, is known as branding.
• Branding gives seller the opportunities to attract profitable set of customers. A
brand loyalty gives seller some protection from the competitors and greater
control in market program. Some importance of branding is as follows:
• Branding helps the seller segment market each formulated differently and
aimed at specific benefits seeking segment.
• Good brand helps in building corporate image
• Memory recalls is facilitated
• Advertising can be directed more effectively and linked with other
communication programs
• Branding leads to a more ready acceptance of a product by wholesalers and
retailers
• The importance of price differentials may be diminished

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• Brand loyalty may give a manufacture greater control over marketing strategy
and channels of distribution
• Branding makes market segmentation easier
• Brand mark is that part of the brand, which appears in the form of a symbol,
design or distinctive, coloring or lettering it is designed to easy identification
of a product
• Brand should suggest something about the product, purpose, quality and
benefits etc.
• It should be easy to advertise and identify
• Should be of a permanent nature
• It should be capable of being registered and protected legally
• It should economical to reproduce
• It should create a good image
• It must have a pleasing sound to the ear when pronounced.

3.9 Forms of promotion:
• Personnel selling
• Advertising
• Sales Promotion
• Publicity
• Propaganda and Public Relation
Selling:
“Selling is the personnel or interpersonal process of assisting and persuading a
prospective customer to buy a commodity or service and to act favourably upon an
idea that has commercial significance to the seller’
Labeling:
Label is a part of the product which carries verbal information about the product or
the seller. It may be part of package, or it may be a tag attached directly to the
product. The act of attaching or tagging the label is known as labeling.
Packaging:

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Packaging of a consumer product is an important part of the marketing plan. Packing
means wrapping of goods before they are transported or stored o4 delivered to a
customer.
Packaging an activity, which is concerned with protection economy convenience and
promotional consideration? The wrapper of the container is celled package.

3.10 Advertising:
Advertising as any paid form of non-personal presentation and promotion of ideas,
goods or services by an identified sponsor.
Advertisement is that activity by which visual oral messages are addressed to the
general public the aim is to persuade people to buy more. It creates desire for new
products the success of advertising greatly depends upon effective advertising
programme. Its purpose is to inform or influence then in order to increase of the sales.
According to Philip Kotler, “advertising is non-personal form of communication
conducted through paid media under clear sponsorship.”

3.10.1 Advertising is mainly for the purpose of:
1. Promotion of new product
2. Support of personnel selling
3. To create brand patronage
4. For dealers support
5. Advertising appears effective in increasing the volume purchased by local
buyers but less effective in winning new buyers.

3.10.2 Kinds of Advertising:-
Product Advertising:-
It aims at selling a particular product. A particular product with its brand is promoted
through advertisement.
Institutional Advertising:-
It is displayed to create goodwill for the firm rather than to sell its product it gives
importance to the firm and wants to create a good impression about a particular
manufacturer.
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Commercial Advertising:-
May be trade advertising relation to trade industrial advertising, relation to industrial
professional, relating profession form, relating to farm products
Non-commercial Advertising:-
Non-profit organizations adopt this type of advertisement.

3.10.3 Selection of Advertising Media:-
• It is a means through which advertises communicate their idea to likely
customer to influence them with a view to know and decide about the product
or service advertised. It needs a prudent calculation; it eats away the funds, the
absence of correct decision will waste the money without result. It must satisfy
the following:-
• It has to reach maximum prospects
• It must gain the attention of readers
• It must have wide coverage at least cost.

3.10.4 Advertising Media:-
Medium is a means through which the advertising message is conveyed to the
consumers. The proper selection of the medium, by which the message is to be
conveyed, must achieve the pre-determined goals.
A medium is the carrier of advertising message. It is the means to deliver the
advertising message. Each advertiser has good many media for his selection.
3.11 Kinds of Media:
Indoor advertising media:-
When advertising is made through newspapers, magazine, radio, T.V program or
cinema program in video etc., so that people can get the message at home, it is
known as indoor advertisement. This media represents the use of those vehicles by the
advertisers that carry the message right into the houses or indoors of the audiences.
Here the massage reaches the audience indoors when it is easy and interceptive mood
because house is the resting place for inmates for relax.

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Outdoor advertising media:-
Outdoor advertising passes the message to those people who are moving audience.
Generally, almost all people go out on some purpose or other-office walk, sightseeing,
journey, park visit etc.
This advertising message is delivered to the audience like print and broadcast media.
Rather the message is placed in strategic places exposed to moving audience. This
outdoor advertising has the best effects of advertising.

Direct mail advertising:-
The object of direct advertising is to create a direct contact with the customers. The
advertiser can keep a close touch with the customers or the public who are supposed
to have interest in his products. It covers all forms of printed advertisements delivered
directly to the prospective customers instead of indirect distribution like newspapers
and magazines. The advertiser contacts customer and keeps a close touch with them
through mail advertising.

Display advertising Media:-
The object of this media is to increase the sales. This is hinged on concepts of display.
Display is the systematic arrangements of sample of saleable products to catch the
imagination as well as to attract the attention and notice of the lookers. It
demonstrates directly about the product by presenting them than by telling and selling
the points directly.

Brochures or flyers:-
Many desk-top publishing and word-processing software packages can produce
highly attractive tri-fold brochures. Brochures can contain a great deal of information
if designed well, and are becoming a common method of advertising.
Direct mail -- Mail sent directly from you to your customers can be highly
customized to suit their nature and needs. You may want to build a mailing list of
your current and desired customers. Collect addresses from customers by noticing
addresses on their checks, asking them to fill out information cards, etc. Keep the list
online and up-to-date. Mailing lists can quickly become out-of-date. Notice mailings
that get returned to you. This should be used carefully and it can incur substantial

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cost, you don't want to inundate your stakeholders with information so make the most
of your message.
E-mail messages -- These can be wonderful means to getting the word out about your
business. Design your e-mail software to include a "signature line" at the end of each
of your e-mail messages. Many e-mail software packages will automatically attach
this signature line to your e-mail, if you prefer.
Magazines -- Magazines ads can get quite expensive. Find out if there's a magazine
that focuses on your particular industry. If there is one, then the magazine can be very

Useful because it already focuses on your market and potential customers. Consider
placing an ad or writing a short article for the magazine. Contact a reporter to
introduce yourself. Reporters are often on the look out for new stories and sources
from which to collect quotes.
Newsletters -- This can be powerful means to conveying the nature of your
organization and its services. Consider using a consultant for the initial design and
layout. Today's desktop publishing tools can generate very interesting newsletters
quite inexpensively.
Newspapers (major) - Almost everyone reads the local, major newspaper(s). You
can get your business in the newspaper by placing ads, writing a letter to the editor or
working with a reporter to get a story written about your business. Advertising can get
quite expensive. Newspaper are often quite useful in giving advice about what and
how to advertise. Know when to advertise -- this depends on the buying habits of your
customers.
Newspapers (neighborhood) -- Ironically, these are often forgotten in lieu of major
newspapers, yet the neighborhood newspapers are often closest to the interests of the
organization's stakeholders.
Online discussion groups and chat groups -- As with e-mail, you can gain frequent
exposure to yourself and your business by participating in online discussion groups
and chat groups. Note, however, that many groups have strong groundrules against
blatant advertising. When you join a group, always check with the moderator to
understand what is appropriate.
Posters and bulletin boards -- Posters can be very powerful when placed where your
customers will actually notice them. But think of how often you've actually noticed
posters and bulletin boards yourself. Your best bet is to place the posters on bulletin

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boards and other places which your customers frequent, and always refresh your
posters with new and colorful posters that will appear new to passers by. Note that
some businesses and municipalities have regulations about the number of size of
posters that can be placed in their areas.
Radio announcements -- A major advantage of radio ads is they are usually cheaper
than television ads, and many people still listen to the radio, for example, when in
their cars. Ads are usually sold on a package basis that considers the number of ads,
the length of ads and when they are put on the air. . A major consideration with radio

ads is to get them announced at the times that your potential customers are listening to
the radio.
Telemarketing -- The use of telemarketing is on the rise.
Television ads -- Many people don't even consider television ads because of the
impression that the ads are very expensive. They are more expensive than most of
major forms of advertising. However, with the increasing number of television
networks and stations, businesses might find good deals for placing commercials or
other forms of advertisements. Television ads usually are priced with similar
considerations to radio ads, that is, the number of ads, the length of ads and when they
are put on the air.
Web pages -- You probably would not have seen this means of advertising on a list of
advertising methods if you had read a list even two years ago. Now, advertising and
promotions on the World Wide Web are almost commonplace. Businesses are
developing Web pages sometimes just to appear up-to-date. Using the Web for
advertising requires certain equipment and expertise, including getting a computer,
getting an Internet service provider, buying (usually renting) a Website name,
designing and installing the Website graphics and other functions as needed (for
example, an online store for e-commerce), promoting the Website (via various search
engines, directories, etc.) and maintaining the Website.
Yellow Pages --The Yellow Pages can be very effective advertising if your ads are
well-placed in the directory's categories of services, and the name of your business is
descriptive of your services and/or your ad stands out (for example, is bolded, in a
large box on the page, etc.). The phone company will offer free advice about placing
your ad in the Yellow Pages. They usually have special packages where you get a
business phone line along with a certain number of ads.

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Promotional Activities Through the Media (Reporters, Newspapers, etc.)
Articles that you write -- Is there something in your industry or market about you
have a strong impression? Consider writing an article for the local newspaper or a
magazine. In your article, use the opportunity to describe what you're doing to address
the issue through use of your business.
Editorials and letters to the editor -- Often, program providers are experts at their
service and understanding a particular need in the community; newspapers often take

strong interest in information about these needs, so staff should regularly offer articles
(of about 200 to 900 words) for publication.
Press kits -- This kit is handy when working with the media or training employees
about working with the media. The kit usually includes information about your
business, pictures, information about your products, commentary from happy
customers, etc.
Press releases or news alerts -- They alert the press to a major event or
accomplishment and requesting, e.g., it get included in the newspaper; they explain
who, what, where, why and when; some include pictures, quotes, etc. to make it easier
for the reporter to develop an announcement or story.
Public service announcements (PSA)s -- Many radio and some television stations
will provide public service announcements for nonprofit efforts. Usually, these PSAs
are free.Other Promotional Activities and Events
Annual reports - Disseminate these to key stakeholders; they're ripe with information
if they include an overview of your year's activities, accomplishments, challenges and
financial status.
Collaboration or strategic restructuring - If you're organization is undertaking
these activities, celebrate it publicly.
Networking - Spread the word to peers, professional organizations and those with
whom you interact outside the organizations, e.g., educators, consultants, suppliers,
clients, etc.
Novelties -- It seems more common to find ads placed on pens and pencils, coffee
cups, T-shirts, etc. These can be powerful means of advertising if indeed current and
potential customers see the novelties. This condition often implies additional costs to
mail novelties, print T-shirts, etc.

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Presentations -- You're probably an expert at something. Find ways to give even
short presentations, for example, at local seminars, Chamber of Commerce meetings,
trade shows, conventions, seminars, etc. It's amazing that one can send out 500
brochures and be lucky to get 5 people who respond. Yet, you can give a presentation
to 30 people and 15 of them will be very interested in staying in touch with you.
Relationships with key stakeholders -- Identify at least one representative from each
major stakeholder group and take them to lunch once a year. What seem as short,
informal exchanges can cultivate powerful relationships of interest and concern.

Special events -- These tend to attract attention, and can include, e.g., an open house,
granting a special award, announcing a major program or service or campaign, etc.
Special offers -- We see these offers all the time. They include, for example, coupons,
discounts, sweepstakes, sales, etc.
Recent Movement in Marketing, Advertising and Public Relations -- Social
Networking (Online)
Social neworking involves a variety of online tools that can be used by people and
organizations to quickly share a great deal of information at very little cost. Many
people are now hearing of some of those tools, e.g., Facebook, Twitter, MySpace and
Youtube. Experts are asserting that social networking is a must for people and
organizations wanting to share information with othres -- after all, that's what
marketing is all about!

3.12 Sales Promotion activities in Nandini:-
In a consumer market to attract consumers and acquire market share, the company is
adopting more sales promotion tools in their marketing strategies. These tools attract
brand switchers who can be lured by offering premium and product at lower prices.
Likewise, the company has adopted a few trade push methods for growth and
judiciously applied is funds towards sales promotion as there were severe cash
crunch. The trade push method proved beneficial because these methods give
company a certain guarantee the customer off takes through the working capital
required becomes relatively high when compared to other method of concentration on
consumer pull by way of advertising campaign.
The following are the sales promotion tools adopted by the Nandini:
Hoardings Sponsorships
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Glow sign Boards Point of purchase material
A shape boards Banners
Vehicle Paintings Calendars
Incentives to traders Greetings
Dairy plant visit by school children Cold Chain
Door to door campaigns Deep freeze
Mobile Quality testing Vise coolers
Other awareness program-campaigns Cycles to delivery boys

Contests/Quiz competition etc Fixture for parlours
Other avenues Media
Gifts to Institution Press Ads
Milk bags translation Advt. and cable network
Gifts to agents Trade shows
Dealers/consumer contacts Exhibitions
3.12.1 Some of the Advertisement promoting by KMF:-
The KMF will handle advertisement of all products of the union, which is in
Bangalore.

Launching of the New Product
KMF is not investing more money on advertisement. Since it has goodwill of 30 years and also it
is handled under government of Karnataka, consumers have faith on product and also there is a
good market value.
When we speak about the advertisement KMF only deals with giving advertisement at low cost
by painting hoardings, boards at the outlets and retail shops. They also give advertisement in
media and newspapers only on festive occasions to wish the customers and farmers. It doesn’t

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hire any superstars to promote NANDINI products but it has only once had hired cine star Puneet
Raj Kumar as brand ambassador. But most of media advertisements is given only to launch new
products like that of GOOD LIFE & Flavored Milk etc.

KMF launches their products according to the needs of customers like that of distribution of fat
in the milk like 1.5%, 3.5%, 4.5% and 6%.
KMF strongly approaches the feedback given by the customer on the spoiling of milk.

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Methodology

4.1 TYPE OF RESEARCH:
Descriptive method has been used in this research for the collection of data
.As the research is related to the study of consumer behavior, which can more
effectively be studied through direct question, experimental research will not be much
effective. Also, considering the constraint, descriptive research is the most suitable
design for this research.

4.1.1 Qualitative research

Qualitative research allows you to explore perceptions, attitudes and
motivations and to understand how they are formed. It provides depth of information
which can be used in its own right or to determine what attributes will subsequently

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be measured in quantitative studies. Verbatim quotes are used in reports to illustrate
points and this brings the subject to life for the reader. However, it relies heavily on
the skills of the moderator, is inevitably subjective and samples are small.
Techniques include group discussions/workshop sessions, paired interviews,
individual in-depth interviews and mystery shopping (where the researcher plays the
role of a potential student, etc in order to replicate the overall experience).

4.1.2 Quantitative research
Quantitative research is descriptive and provides hard data on the numbers of
people exhibiting certain behaviors’, attitudes, etc. It provides information in breadth
and allows you to sample large numbers of the population.

4.1.3 Descriptive research:

Descriptive research is used to obtain information concerning the current status
of the phenomena to describe "what exists" with respect to variables or conditions in a
situation. The methods involved range from the survey which describes the status quo,
the correlation study which investigates the relationship between variables, to
developmental studies which seek to determine changes over time.

 Statement of the problem.
 Identification of information needed to solve the problem.
 Selection or development of instruments for gathering the information.
 Identification of target population and determination of sampling procedure.
 Design of procedure for information collection.
 Collection of information.
 Analysis of information.
 Generalizations and/or predictions.

4.2 SOURCE OF DATA:

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Data which is collected for the first time is called primary data. In the study
primary data includes the data which is collected from the customer directly with
interaction. The study includes data got with personal interaction.

4.3 Primary and Secondary Data:

The appraiser or market analyst must know what they are and what affects
them. All data used in appraisals and market studies should be current, relevant,
reliable, accurate, and conceptually correct. This article presents a discussion of each
of these terms and their significance in the context of the data and in the analysis. The
article then discusses the nature of potential errors that can affect primary and
secondary data. Several categories of errors can exist. The analyst needs to be able to
recognize the error, understand its significance and evaluate the applicability of that
data in the analysis.
Secondary data--Information from secondary sources, i.e., not directly
compiled by the analyst; may include published or unpublished work based on
research that relies on primary sources of any material other than primary sources
used to prepare a written work.
Secondary data has been gathered by others for their own purposes, but the
data could be useful in the analysis of a wide range of real property. In general,
secondary data exists in published sources.

4.3.1 Methods for Obtaining Primary Data:

The analyst can obtain primary data through the process of direct observation
or by explicit questioning of people.

Observation:
Observation as a data gathering technique focuses attention on an observable
fact or inanimate entity such as a building or on an observable action or behaviour by
an animate entity such as a homeowner or shopper. Observation of an inanimate

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object is the easier of the two activities, but it is not free from error or
misinterpretation.

4.4 Sampling:
Sampling is a process of learning about the population on the basis of which
sample is drawn. A sample is a subset of a population unit.

Sample Design:
Sampling is a practice a researcher uses to draw data on people, places, or
things to study. Sampling allows statisticians to draw conclusions about a whole by
examining a part. It enables us to estimates characteristics of a population by openly
observing a portion of the entire population. The whole that the researcher wants to
know something about is the population is called a sample.

4.5 SAMPLING TECHNIQUE:
The sampling technique used in the study includes both simple random sampling as
well as judgment sampling.
Respondent Size: 100
Tool for data collection: Structured questionnaire
Geographical area: Hassan city.

4.6 Data collection instrument
The primary data collection instrument for the survey is self administrated and
structured questionnaire which consists of preference and scaling questions. This
method of data collection is quite popular, particularly in case of big enquires. The
questionnaire consists of close-ended and open ended questionnaire.
The study includes questionnaire of 15 questions to an effective study on
promotional activities of Nandini Milk and It’s Products at Hassan City.

Page 65

Promotional Strategies of Nandini Milk

Promotional Strategies of Nandini Milk

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