Vishnavai Sairam
Vishnavai Sairam
products in such a way that it carves a niche for itself in the minds of the customers.
The trick lies in being able to find the real needs of the customer and endeavoring to meet
them. The consumer has some expectations and the ability or inability of the company to meet
these expectations results in consumer satisfaction or dissatisfaction.
This study tries to gain an insight into the customer satisfaction, as it is the customer
perceived satisfaction that influences his or her post purchase behavior.
Earlier there were only a few brands of liquid milk but due to the increased preference for
branded milk various companies have sprung up offering different varieties of packet milk to
meet each every need and want of the customer.
It is this increased competition and the need for the companies to attract new customers
while still retaining the existing customer that necessitates the study of the customer satisfaction
given by Vyshnavi Foods India Limited liquid milk in relation to its competitors.
1) To know the customer satisfaction with regard to various brands of liquid milk.
2) To determine the market share of Vyshnavi Liquid Milk as against its competitors
among the sample respondents
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SCOPE OF THE STUDY:
The scope of the study was restricted to the sample from the khammam. The topics
covered as a part of the survey were customer awareness of branded liquid milk customer
satisfaction with regard to various brands of liquid milk, the reasons for brand switching among
customers and the suggestions of customers to increase the satisfaction given be Vyshnavi
Liquid Milk.
RESEARCH METHODOLOGY:
"A research design is the specification of methods and procedures for acquiring the
information needed. It is the overall operational pattern or framework of the project that
stipulates what information is to be collected from which sources by what procedures".
I.PRIMARY DATA:
Primary data was mainly collected from the sample by administrating a structured
questionnaire. The information was obtained by personally administrating the questionnaire.
Another source of primary data was the information gathered from the interactions with the
company officials.
II.SECONDARY DATA:
Secondary data in case of this project was collected from the profile of the company and
also from various articles in different magazines and web source.
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LIMITATIONS:
1) The survey results cannot be generalized to other regions as the study is restricted to the
khammam only.
2) The data was collected from a convenient random sample from selected areas in the
khammam.
3) The sample has been taken according to the conveniences of the surveyor.
CHAPTERISATION:
The project entitled “Customer Satisfaction for Liquid Milk with Special Reference to
Vyshnavi - A study of khammam", has been broadly divided into five chapters.
The First chapter “Introduction" deals with the introduction to the topic of study, the need
for the study, the objectives (or) the purpose of the study. It also describes the sample and its
size, the research methodology and the data analysis and interpretation techniques adopted.
The second chapter entitled “Vyshnavi Foods pvt limited -A Profile" describes the step by
step progress. Today emerged as the largest private sector milk and milk Products Company. The
future plans of Vyshnavi Foods Pvt., Limited is also dealt with briefly.
The third chapter titled “Customers satisfaction" describes briefly idea about customer’s
satisfaction. The fourth chapter “Tabulation and Analysis of Data" presents the analyzed data in
the form of tables along with their interpretation. Graphical representation (Doughnut chart, Pie -
diagram, bar - diagram) of data was also where necessary.
The last chapter "Conclusions and Suggestions" highlights certain important conclusions
drawn from the analysis and interpretation of the data. An attempt has made to give suggestions
based on the conclusion drawn.
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Industry Profile
MILK HISTORY:
Milk is as ancient as mankind itself, as it is the substance created to feed the mammalian
infant. All species of mammals, from man to whales, produce milk for this purpose. Many
centuries ago, perhaps as early as 6000-8000 BC, ancient man learned to them. These included
cows (genus bos) ,buffaloes, sheep, goats, and camels, all of which are still used in various parts
of the world for the production of milk for human consumption.
Fermented products such as cheeses were discovered by accident, but their history has also
been documented for many centuries, as has the production of concentrated milk, butter, and
even ice cream. Technological advances have only come about very recently in the history of
milk processing from an art to science.
The availability and distribution of milk and milk products today in the modern world is a
blend of the centuries old knowledge of traditional milk products with the application of modern
science and technology.
The role of milk in the traditional diet has varied greatly in different regions of the world.
The tropical countries have not been traditional milk consumers, whereas the more northern
regions of the world, Europe (especially Scandinavia) and North America, have traditionally
consumed far more milk and milk products in their diet.
Milk is India's number one farm commodity in terms of its contribution to the nation
economy in 2001-02 the value of its output based on producer price was Rs. 100,051 millions,
exceeding that from paddy (rice). Notwithstanding its top place and many benefits it bestows on
the lower rungs of the rural society, dairying has not received due attention from planners,
economists, social scientists and others. For example, the investment in dairying made under the
five-year plans is not commensurate with its output. Consequently, its potential has not been
adequately tapped.
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MILK PRODUCTION:
THE UPSIDE:
Increasing Awareness: as India enters an era of economic reforms, agriculture, particularly the
livestock sector, is positioned to be a major growth area. The fact that dairying could play a more
constructive role in promoting rural welfare and reducing poverty is increasingly being
recognized. Each rising one or two cows/buffaloes. Cow dung is an important input as organic
fertilizer for crop production and is also widely used as fuel in rural areas. Cattle also serve as an
insurance cover for the poor household, being sold during times of distress.
SUPPY MATCHES DEMAND: efforts to increase milk production by dairy farmers are strongly
influenced by the degree to which demand signals are transmitted through the marketing system.
Cooperatives have played an transmitted through the marketing system. Cooperatives have
played an important role in transmitting the message of urban market demand to them. Since the
demand in the urban scenario is rapidly increasing so is the supply generated by the farmers.
Surplus capacity: further, the new dairy plant capacity approved under the milk & milk
products order (MMPO) has exceeded lOOmillions Ipd. The new capacity would surpass the
projected rural marketable surplus of milk by about 25 percent by 2010 AD.
Technological gaps: several areas of the dairy industry can be strengthened by the induction of
state-of-the-art technologies from overseas. Those who bring in new technologies or sign joint
ventures with foreign companies stand to benefit the most. To make the best out of the present
situation, the following areas require immediate remedial action on the part of dairy
entrepreneurs:
Latest packaging technology can help retain nutritive value of packaged products and
extend their shelf-life. For proper storage and transportation, cold chain needs to be
strengthened.
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Good scope exists for value-added products like desserts, puddings, custards, sauces,
mousse, stirred yogurt, nectars and sherbets.
WEAKNESSES:
Perish ability: pasteurization has overcome this weakness partially. UHT gives milk long
life. Surely many new processes will follow to improve milk quality and extend its shelf
life.
Lack of control over yield: theoretically, there is little control over milk yield. However,
increased awareness of developments like embryo transplant, artificial insemination and
properly managed animal husbandry practices, coupled with higher income to rural milk
producers should automatically lead to improvement in milk
Logistics of procurement yield: woes of bad roads and inadequate transportation facility
make milk procurement. But with the overall economic improvement in India, these
problems would also get solved.
Problematic distribution: yes, all is not well with distribution. But then if ice creams can
be sold virtually at every nook and corner, why can't we sell other dairy products too?
Moreover, it is only a matter of time before we see the emergence of a cold chain linking
the producer to the refrigerator at the consumer's home!
OPPORTUNITIES:
DR.kurien bears out this statement perfectly. He entered the industry when there were only
threats. He met failure head-on, and how he clearly is an example of 'never ending success'! if
dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped:
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Steps should be taken to introduce value added products like ice creams, pannier,
khoa,flavored milk , dairy sweets, etc. this will lead to a greater presence and flexibility
in the market place along with opportunities in the field of brand building.
Addition of cultured products like yoghurt and cheese lend further strength- both in terms
of utilization of resources and presence in the market place.
A lateral view opens up opportunities in milk proteins through casein, castigates and
other dietary proteins, further opening up export opportunities.
Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals.
EXPORT POTENTIAL: efforts to exploit export potential are already on. Amul is exporting to
Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the GATT treaty, opportunities
will increase tremendously for the export of Agro-products in general and dairy products in
particular.
THREATS:
Milk vendors and un-organized sector: today milk vendors are occupying the pride of
place in the industry. Organized dissemination of information about the harm that they are doing
to producers and consumers should see a steady decline in their importance. The study of this
SWORT analysis shows that the 'strengths, and 'opportunities' far Outweigh 'weaknesses' and
'threats
India has become the world’s no. 1 milk producing country, with output in 2006-
2007(marketing year ending March 2006) forecasted at 79 million tones.
Two key elements of marketing strategy for 2007 are: focus on strong brands and product
mix expansion to include UHT milk, cheese, ice creams and spreads. The changing marketing
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trends will see the shift from generic products to packaged quasi, regular and premium brands or
reduce their presence. The brand image can do wonders to a product's marketing as is evident
from the words of perfume princess coco channel: 'in the factory, we pack perfume; in the
market, we sell hope’!
COMPANY INTRODUCTION
MARKETING SETUP
COMPANY INTRODUCTION:
SRI VYSHNAVI FOODS (P) LTD. Is a private limited company incorporated under the
company act 1956, with the registrar of companies, Andhra Pradesh in 1996 and established its
dairy project in KHAMMAM District (A.P) , headed by Mr. RAJESH CHAVDA and Mr. D.
VENKATESWARA RAO who are the chairman and managing director respectively, who are
having vast experience in business line. In the subsequent years they have established the dairy
project at chintalapudi (west Godavari district) and at Chennai (Tamilnadu) and in the year 2000
they established spices factory at Khammam. The directors also own the six cold storages
situated in Khammam and Guntur, so they are able to assure the consistent quality products from
the house of VYSHNAVI.
The company has its own and strong network of producing milk in 400 villages of
Khammam Krishna and West Godavari Districts directly from farmers and by that way the
company has provided the livelihood directly to more than 2000 people and made all of them as
members of VYSHNAVI family.
Since the directors of the company are basically from spices back ground right from their
forefathers so, they are able to collect the best quality of raw materials for their spice products.
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PROCESSING AND QUALITY CONTROL:
The processing of the milk is done by very sophisticated and the best available equipments
in India The total processing is being done under the super vision of highly qualified and most
experienced technocrats in the relevant field in very hygiene city conditions by removing
bacteria up to zero level through pasteurization of the milk
For the past 4 years the company has successfully in marketing its products in various
towns and cities of the Andhra Pradesh and in Chennai, with the help of strong distribution and
marketing network and has earned a good name, which is popularly known as VYSHNAVI and
created a good market share in milk products in front of the giants.
Though there were many competitors and obstructions in this field, company has earned a
good will and good name because of the commitments and dedication of the company and its
team from bottom line employee to the top management, who work together as a team and with
spirit in the VYSHNAVI family and atmosphere has company to achieve its goal quite
successfully.
PRODUCT LINE:
TONNED MILK
WHOLE MILK
FLAVORED MILK
GHEE
PANEER
CURDS
DAIRY SWEETS
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COMPANY SHARED VALVES :
COMMITMENT TO QUALITY
CUSTOMER ORIENTATION
DEDICATION&COMMITMENT
DICIPLINE
LEARNING ORGANIZATION
TEAM WORK
COMPANY MISSION:
We shall operate in existing and new businesses which capitalize on the vyshnavi brand
and our corporate image of reliability and integrity.
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2.1. SALES PER DAY:
1 28050 16 26550
2 27091 17 31850
3 26500 18 29330
4 29089 19 27650
5 28156 20 31660
6 29560 21 29560
7 26580 22 32690
8 29850 23 29840
9 28950 24 41930
10 32428 25 27467
11 31690 26 32528
12 29870 27 41560
13 32960 28 37308
14 28990 29 35930
15 30600 30 38409
31 39873
Total 440364 Total 534135
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Company Profile
There are two types of organization structure like tall and flat in terms of the span of
management. The Vyshnavi Foods Pvt. Ltd. is found to be maintaining a flat structure.
As there are number of supervisors and all the tasks are highly interrelated with a less
number of hierarchical levels, this organization can be treated as possession a flat structure.
KINESICS :
While, I was interviewing the sales manager, I observed a person Srinivas, worker of that
organization, in front of the Sales manager, he stood by cross folding his hands, which shows his
defending nature. Often he used to pullout the shirt collar, which in turn means he was lying.
Afterwards, at his work place, I observed him, had his fingers in mouth, which exhibits his
nervousness.
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2.3. DATE IN THE FORM OF GRAPHS:
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CUSTOMER SATISFACTION
As companies face the toughest competition ever it is in their interest to move from sales
philosophy to Marketing Philosophy as it is the only option open for them to outdo their
competition. Most company’s think that the job of their marketing / sales department is to
procure customers, what they do not realize is that procuring is easier than retaining the
customers.
According to Peter F, Ducker a company’s first task is "to create customers", but today
with a vast array of product and brand choices, prices and suppliers the customers choose by
estimating which product offer delivers the most value. As value maximizes customers form an
expectation of value and act on it. Whether or not the offer lives up to the value expectation
effects the customer’s satisfaction and their repurchase probability.
The total customer value is a bundle of benefits customers expect from a product or
service.
The total customer cost is the bundle of costs customers expect to incur in evaluating,
obtaining and using the product or service.
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The following chart gives a clear view of the determining of customers Delivered Value.
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Marketing Implications of Customer Delivered Value:
5) The marketer must assess the total customer value and the total customer cost associated
with each competitors offer to know how his/her own offer stack up.
6) If the marketer finds himself/herself at a delivered value disadvantage he/she has two
alternatives.
Try to decrease total customer cost by either reducing the price or simplifying
ordering and delivery process or absorbing some of the buyer risk by offering a
warranty.
Customer Satisfaction:
Customer satisfaction is a post purchase phenomenon; whether the buyer is satisfied after
purchase depends on the offers performance in relations to the buyer's expectations.
Definition:
The above definition makes clear that satisfaction is a function of perceived performance
and expectation, the customer is dissatisfied. If the performance matches the expectations, the
customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or
delighted.
Many companies are aiming for high satisfaction because customers who are just satisfied
still find it easy to switch when a better offer comes around. Those who are highly satisfied are
much less ready to switch. High satisfaction or delight creates an emotional affinity with the
brand not just a rational preference. The result is high customer loyalty.
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Buyer’s expectations are influenced by their past buying experience, friends' and
associates' advice, and marketers' and competitors' information and promises. If marketers raise
expectations too high, the buyer is likely to be disappointed. However, if the company sets
expectations too low, it won't attract enough buyers (although it will satisfy those who do buy).
Some of today's most successfully companies are raising expectations and delivering
performances to match. These companies are aiming for TCS - Total Customers Satisfaction.
" To make a company more responsive to its customers and better able to attract new
ones".
Custom rising a company calls for more than providing good information and customer
contact. Ultimately it may require linking staff pay to customer satisfaction. The company's staff
must be “converted" to practicing a strong customer orientation.
Customer satisfaction is both a goal and a marketing tool in customer -centered companies.
Companies that achieve high customer satisfaction rating make sure that their target market
knows it.
Although the customer - centered firm seeks to create high customer satisfaction, its main
goal is not to maximize customer satisfaction.
First, the company can increase customer satisfaction by lowering its price or its price or
increasing its services, but the results may be lower profits.
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Second, the company might be able to increase its profitability by means other than
increased satisfaction (for example, by improving manufacturing process or investing
more in R & D).
Third, the company has many stake holders including employees, dealers, suppliers and
stockholders. Spending more to increase customer satisfaction might divert funds from
increasing the satisfaction of other "partners".
Ultimately the company must operate on the philosophy that it is trying to deliver a high
level of customer satisfaction subject to delivering at least acceptable levels of
satisfaction to the other stake holders within the constraints of its total resources.
In addition to improving their relations with their partners in the supply chain, many
companies are intent on developing stronger bounds and loyalty with their customers for granted.
Their customer may not have had many alternative sources of supply, or all suppliers were
equally deficient in service, or the market was growing so fast that the company did not worry
about satisfying its customers.
The cost of attracting a new customer is estimated o be five times the cost of keeping a
current customer happy. It requires a great deal of effort to induce satisfied customers to switch
away from their current suppliers. Unfortunately, the traditional emphasis has been on making
sales rather than building relationships. The focus has been on pre - selling rather than on caring
for customer afterward. Today however, more companies are recognizing the importance of
satisfying and retaining current customers
By erecting high switching barriers, customers are less including to switch to another
supplier when this would involve high capital costs, high search costs, the loss of loyal -
customer discounts, and so on.
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The better approach is to deliverer high customer satisfaction. This makes it harder for
competitors to overcome switching barriers by simple offering lower prices or switching
inducements.
The task of creating strong customer loyalty is called Relationship Marketing. Relationship
marketing embraces all those steps that companies undertake to know and serve better their
valued individual customers.
The starting point involved in attracting and keeping customers is suspects, everyone who
might conceivably buy a product or service. The company determines who are the most likely
prospects - those who have a strong potential interest in the product and the ability those with
poor credit or those who would be unprofitable as disqualified prospects. The company hopes to
convert many of its qualified prospects into first - time customers and to then convert those
satisfied first - time customers into repeat customers.
The company then acts to convert the repeat customers into clients -people who buy from
the company in the relevant product categories. The next challenge is to turn clients into
advocates, who praise the company and encourage others to buy from it. The ultimate challenge
is to turn advocates into partners, where the customer and the company work actively together.
The company's challenge lies in reactivating dissatisfied customers through customer win - back
strategies.
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4.1. MONTHLY INCOME:
below 5,000 5 5%
5,000 – 10,000 47 47%
10,000 –25,000 29 29%
above 25,000 19 29%
TOTAL 100 100%
19%
5%
below5,000
47% 5,000-10,000
10,000-25,000
29% above25,000
Interpretation:
From the above data shows 5% respondents monthly income below Rs 5,000.47%
respondent’s monthly income in between Rs 5,000-10,000. 29% respondent’s monthly income in
between 10,000-25,000.19% respondent’s monthly income above Rs 25,000.
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4.2. MILK DO YOU BUY:
1 litter 44 44%
2 litters 21 21%
17%
18%
44%
Interpretation:
From the above data 17% of users buying 500ml of vyshnavi milk. 44% of users buying 1
litter of vyshnavi milk. 21% of users buying 2 liters of vyshnavi milk .3 litters and above
milk are purchased by only 18% of the users of vyshnavi.
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4.3. MODE OF PURCHASE:
Mode of Purchase
No. of respondents
38
40
Responden ts
32
35
30
25
18
20
15 12
10
5
0
Interpretation:
From the above data 38% of respondents are get the milk sachets from booth directly. 32%
respondents are purchase loose milk. 18% respondents are get the milk by sachets through home
delivery while the remaining 12% are purchase from the vending units.
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4.4. BRANDS WHICH YOU PURCHASE:
Vijaya 25 25%
Vyshnavi 55 55%
Modern 20 25%
Others - -
No. Of respondents
60
55
50
40
Respondents
30
25
20
20
10
0
0
Vijaya Heritage Modern Others
Interpretation :
From the above data 55% of respondents buy vyshnavi branded millk.25%buy vijaya branded
milk and20% buy modern milk brand.
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4.5. TYPES OF MILK PURCHASED:
Standardized
55 55%
4.5% Fat
Tonned Milk
20 25%
3.0% Fat
No. Of respondents
60 55
50
Respondents
40
30 25
20
20
10
0
Whole Milk Purchased 6 % Fat Standardized 4.5% Fat Tonned Milk 3.0% Fat
Interpretation:
From the above data shows above half of the respondents are using 4.5% fat milk while
25% users purchase 6% fat milk and remaining 20% of respondents are using 3.0% fat milk.
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4.6. YOU BUY THAT VYSHNAVI BRAND BECAUSE OF :
Level of Satisfaction
Series1
60 55
50
Respondents
40
30
30
20 15
10
0
Price is less Quality is good Its near your home
Satisfaction
Interpretation:
From the above data 55% respondents buy vyshnavi milk become it quality,30% of product
prices,15% of availability product.
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4.7. NEAREST AVAILABILITY OF VYSHNAVI MILK:
Availability of Vyshnavi
Numbers of Respondents Percentage
Milk
Yes 80 80%
No 20 20%
90 80
80
Respondents
70
60
50
40
30 20
20
10
Yes No
Interpretation:
From the above data 80% of the respondents said that it is near to them and 20% of the
respondents of the people said that it is far away to them.
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4.8. FULLY SATISFIED WITH THE QUALITY SUPPLIED AND SERVICE:
Level of Satisfaction
Series1
60
49
Respondents
50
39
40
30
20 12
10
0
Fully Satisfied Not Satisfied Satisfied only to some
extent
Satisfaction
Interpretation;
From the above data 49% of respondents said that they fully satisfied with Quality supplied and
service and 39% of respondents are satisfied only to some extent and remaining 12% of
respondents are not satisfied.
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4.9 .IF NOT, HOW LONG YOU HAVE TO TRAVEL TO GET THE VYSHNAVI MILK:
1 K.M. 65 65%
2 K.M. 35 35%
Above 2 K.M. - -
Chart Title
2 K.M.
35%
1 K.M.
2 K.M.
Above 2 K.M.
1 K.M.
65%
Interpretation:
From the above data 65% of respondents are getting vyshnavi milk from 1 K.M. and 35% of
respondents are travel 2 K.M. for getting vyshnavi milk.
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4.10. A PART FROM MILK ARE YOU AWARE OF ANY OTHER VYSHNAVI MILK
PRODUCT RANGE:
Yes 70 70%
No 30 30%
Chart Title
No
30%
Yes
No
Yes
70%
Interpretation:
From the above data show that 70% of respondents are aware of Vyshnavi products and
remaining 30% of respondents are not aware of vyshnavi products.
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4.11. DO YOU GET VYSHNAVI MILK IN TIME:
Yes 79 79%
No 21 21%
21%
Yes No
79%
Interpretation :
From the above data shows that 79% of respondents said that the delivery of vyshnavi milk is in
time and 21% of respondents are said that it is delay.
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4.12. RECOMMENDATION OF VYSHNAVI MILK TO OTHER:
Recommend of Vyshnavi
Numbers of Respondents Percentage
Milk
Yes 75 75%
No 25 25%
75
80
70
60
Respondents
50
40
25
30
20
10
0
Yes No
Interpretation:
From the above data shows 78% of the respondents recommend vyshnavi milk to others and
25% of the respondents do not recommend.
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FINDINGS:
49% of respondents said that they satisfied with quality and supply and services.
78% of respondents said that they recommend the vyshnavi milk to other.
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SUGGESTIONS:
The analysis of the data has revealed that though Vyshnavi enjoys 70% of awareness
there is a further need to increase the level of awareness.
There is a definite need to improve the thickness of Vyshnavi Milk as this was the most
common dissatisfaction expressed by the consumers.
In course of the survey it was found that certain areas in the khammam have not been
covered under the Vyshnavi distribution network in spite of their market potential.it is
suggested to cover the uncover areas.
It is observed in the study that other leading brands are capturing the market of
Vyshnavi by providing qualitative milk. Hence there is a need to concentrate on the
quality of milk.
There is a misconception among the consumers that branded milk doesn’t have a high
fat content and as such is not as healthy as unbranded milk so there is a need to educate
the consumers and remove this misconception.
The delivery service of Vyshnavi Milk also needs improvement as there was some
dissatisfaction because of the late delivery of milk due to frequent break down of
delivery vans.
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QUESTIONNAIRE
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a) Less in price b) good in quality c) available in near distance
a) Yes b)No
10) How the customers of vyshnavi milk are satisfied with the quality supplied & service?
11) How far long customers mostly have to travel to get the vyshnavi milk?
a ) 1 km b)2km c)above 2 km
12) Which milk does the respondents use other than vyshnavi milk?
a) Yes b) No
a) Yes b) No
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BIBLIOGRAPHY
Book Referred:
Title AUTHOR
WEBSITES:
www.vyshnavidairy.com
www.citehr.com
www.hr.net
www.virchows.com
www.dairyindustry.com
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