CHAPTER – 1

INTRODUCTION
THE KERALA CO-OPERATIVE MILK MARKETING
FEDERATION (KCMMF)

The Kerala Co-operative milk marketing federation (KCMMF) was registered as

a cooperative society in 1980 with its head office in Thiruvananthapuram.
It is a statutory corporation under the ownership of ministry of fisheries, animal husbandry and
dairying Government of kerala. KCMMF is a federation of three regional milk unions. The
ERCMPU, TRCMPU and MRCMPU. It follows a
coperative structure and one of the most profitable cooperatives in kerala livestockand milk
marketing facilities under the Kerala livestock and milk marketing board.

The organisation has a three – tier structure with the primary milk
cooperative societies at the village level,regional milk producers Union at the middle level and an
apex body at the state level which is the kerala cooperative milk marketing federation Ltd. There
are three regional cooperative milk producers unions operating at present. The revenue district of
Thiruvananthapuram, Kollam, Alappuzha and Pathanamthitta come under under the jurisdiction of
the Thiruvananthapuram Regional cooperative milk producers union (ERCMPU), The district of
ernakulam, Thrissur, Kottayam and Idukki under the ernakulam regional cooperative milk
producers union (MRCMPU). The three tier structure ensures that the farmer members are directly
responsible for policy level decisions for the marketing of their produce. K.S Mani is the new
chairman of kerala Co-operative milk marketing federation (MILMA).

OBJECTIVES OF MILMA

 To channelise marketable surplus milk from the rural areas to urban deficit areas and to
maximize the returns to the producers and provide quality milk and milk products to the
 consumers.
 To carry out the activities for promoting production, procurement and processing and
marketing off milk for economic development of the farming community.
 To provide assure year round market and stable price to the diary farmers for their produce.

1.2 STATEMENT OF THE PROBLEM

Ernakulam regional cooperative milk producers union Ltd (ERCMPU) is affiliated to the kerala
cooperative milk marketing federation Ltd, Edappally, Ernakulam. The project undertaken is “A
STUDY ON CUSTOMER SATISFACTION OF SET CURD AND ITS SPECIAL REFERENCE
TO MILMA, ERCMPU LTD” and it's
findings are reported to the management.

1.2 SCOPE OF THE STUDY

This study s conducted in a milk cooperative society. Since the study on customer satisfaction of
milma set curd and its special reference to milma, study is limited to customers of milma set curd
of Ernakulam district.

1.4 OBJECTIVES OF THE STUDY

 To find out the level off satisfaction.

 To know the features that attract customers to purchase milma set curd.

1.5 RESEARCH METHODOLOGY

It is a suggestive method of collecting recommending the fact in the form of

numerical data relevant to the formulated problem and arriving at certain
conclusions over the problem based on collected data.

1.5.1 RESEARCH DESIGN

The research design adopted for the study is descriptive research login.

1.5.2 POPULATION

The total number of population taken is 100.

1.5.3 SAMPLE SIZE

Sample taken for the study is 50.

1.5.4 SAMPLING METHOD

The sample for the study has been selected by the convenience sampling method.

1.5.5 DATA COLLECTION METHODOLOGY

PRIMARY DATA

Data was collected using a questionnaire and also through observations. There were 150
customers in that 100 were being selected through convenience sampling for the study.
SECONDARY DATA

Data was collected through company reports and the company websites.

1.5.6 ANALYSIS TECHNIQUE

Simple average analysis and charts were used as an analytical tool for data analysis. Percentage
analysis is applied to create contingency table from the frequency distribution and represent the
collected data for better understanding.

1.6 LIMITATIONS OF THE STUDY

In any study or research conducted there will be some limitations associated with it.
Hence the proper understandings id inevitable to specify the limitations of study.
Time available for collecting the data from the organisations was limited. The study
of this kind requires a long span of time which is beyond the scope of the study.

1.7 LAYOUT OF THE STUDY

Chapter 1 – Introduction
Chapter 2 – Review of literature and theoretical framework
Chapter 3 – Industry an company profile
Chapter 4 – Data analysis and Interpretation
Chapter 5 – Findings,Suggestions and Conclusion
Bibliography
Appendix
 CHAPTER 2
REVIEW OF LITERATURE

2.1 REVIEW OF LITERATURE

Customer satisfaction ;

A case of cellular operations in malaysia have viewed that customer satisfaction and customer
service have been critical factors of customer satisfaction is a central concept in modern marketing
thought and practice. The marketing concept emphasizes delivering satisfaction to consumers and
obtaining profits in return As a result, overall quality of life is expected to the enhanced. Thus,
consumer satisfaction is crucial to meeting various needs of consumers, business and society. Thee
realisation of this importance has led to a proliferation of research on customer satisfaction over the
past two decades. Attempts to make significant contributions toward understanding this important
are have been made, including numerous studies and conferences on customer
satisfaction/dissatisfaction and annual complaining behaviour.
 OPINION OF BHAVE AND ASHISH :

In their article entitled “Customer satisfaction measurement” have found that the opinion that
customers perception towards service and quality of a product determines the success of that
product or service in the market with better understanding of customers perception, a firm can
determine the suitable actions to meet the needs of the customers. Firms can identify their own
strengths and weakness in comparison with their competitors. Major attributes that influence
customer satisfaction are product, packaging delivery and ability to resolve complaints and overall
communication.

OPINION OF K.C RAJA, SHARMA,UMA, AND R. SASIKALA :

In their article entitled, Measuring customer satisfaction among mobile handset end users: An
Empirical study have stated that customer satisfaction is a concern for any business throughout the
word. They have discussed customer/customer satisfaction in the context of perceived values of the
mobile commerce; service attributes, product quality, service support and corporate brand equity
are the 14 underlying factors of customer satifaction.

OPINION OF P. SHIKALA

In her article titled, “Telecom Services: Measurement of customer satisfaction” has indicated the
customers set reliability among the components of service quality as the important criterion to
determine behavioural intention. Service quality includes elements, like coverage, connectivity and
voice clarity which are strongly correlated with the technical limitation of the mobile subscriber
network as well as service providers own infrastructure. The identified important discriminate
service quality factors among the satisfied and the dissatisfied in the mobile phone services are 15
reliability and responsiveness.
OPINION OF SHAKIR HAFEEZ AND S.A.F . HASNU

In their article titled “customer satisfaction for cellular phones in Pakistan: a case study of mobile
link” stated that satisfaction is a crucial element for the success of all businesses one of the biggest
challenges for a market is how to satisfy and retain the customers. The findings suggest that overall
customer satisfaction and customer loyalty is comparatively low among the customers. The
customer loyalty in mobile sector is relatively low because it is an emerging industry.

OPINION OF SANY SANURI MOHD, MOKHTAR, AHMED AUDU

MAIYAKI AND NORAINIBT MOHD NOOR

In their article titled “the relationship between service quality and satisfaction on customer loyalty
in Malaysian Mobile Communication Industry” have explored that both service quality and
customer satisfaction significantly affect the level of customer loyalty of mobile phone users in
Malasya. It is therefore recommended that mobile service providers should pay special attention
towards the customer's satisfaction.

A STUDY OF FURSE ET AL (1994)

It is the judgement that a product or service feature or the product or service itself provides a
pleasurable level of consumption related fulfilment. “Furze refers, “Satisfaction as the
measurement of one or more variety of customer opinions including ratings of service quality,
future behavioral intentions, customer's self-assesment out come.
THE OBSERVATION OF BOULDING ET AL (1993)

It stated another perspective of customer satisfaction which deals with the difference between
transaction specific and cumulative customer satisfaction. Customer satisfaction is viewed as a
post-purchase evaluative judgment or a specific purchase occasion according to transaction-
specific perspective. Cumulative customer satisfaction is an overall evaluation based on the total
purchase and consulnption experience with goods or service over time. Cumulative satisfaction is a
fundamental indicator of the firm's past, current and future performance and its cumulative
satisfaction that motivates a firm's investment in customer satisfaction.

A STUDY BY KOTLER AND ARMSTRONG(1993)

It stated the consumer/customer satisfaction is determined by the relationship between the

customer's expectations and product's perceived performance. Customer satisfaction is important
because a company earns sales from new customers and retained customers. Satisfied customers
buy a product again, talk favourably to others about the product. Pay less attention to competing
brands and advertising.

THE OBSERVATION OF MANO AND OLIVER(1993)

The three aspects of the post consumption experience-product evaluation, product elicited affect
and product satisfaction. Product satisfaction is best characterized as an attitude-like post
consumption evaluative judgement (Hunt. 1977)the evaluative aspect of that judgement varying
along the hedonic continuum(Oliver 1989; Westbrook and Oliver 1991).
 A STUDY BY WEBBROOK AND OLIVER(1991)

It described customer satisfaction is apost choice evaluative judgement concerning a specific

purchase selection. It has been stated that customers, when faced with a variety of products, make
their choice based on perceived value to themselves, not to the marketing company. Value thus
depends on how well the offering-be it a product or service or other good-will satisfy a need, want
or demand regardless of what the selling party perceives value to be.

THE OBSERVATION OF OLIVER(1987)

It examined whether satisfaction was an emotion and concluded that satisfaction is a summary
attribute phenomenon coexisting with other consumption emotions. Firms must appropriately
modify these components of customer satisfaction to develop a context specific definition that
should give to measure satisfaction.

OBSERVATION HARDY (1980)22

He found the impact of customer satisfaction on growth taking 45 countries data into
consideration. That satisfaction has largest effect in the least developed countries and the smallest
effect in the developed countries.
 CHAPTER 3
INDUSTRY AND COMPANY PROFILE

3.1 INDUSTRY PROFILE

Industry is one of the major constituents of the term comprehensive “Business” which may be
defined as the regular or current production or purchase and sales of goods undertaken with the
main object of earning profit and acquiring wealth through the satisfaction of human wants, and in
the terms of Economics, business may be described as the programme of inputs (investments) and
output (return) aiming at the maximization of output with lowest input. Industry as a part of
business activity is concerned with the raising, producing, processing or fabricating products or
services which may be used either by the final consumers or by other industrial unit its for further
production.

A dairy industry depends on milk. Milk is raw material for dairy product. Milk is the natures
perfect food for all ages. It has almost all the vital nutrients needed or growth well being off the
human body. Milk is the richest source of calcium and essential amino acids which is good for bone
formation. It is particularly beneficial for people recovering from sickness, Children, Sport person,
aged ones, women etc.

The dairy industry of India has gone grown from an almost completely unorganized but vastly
complex industry of large magnitude to an organised industry during the last 55 years with an
annual milk production of about 29 million metric tones in the year 1979 – 80.

India's milk production in 2001 is forecasted at million tones. In India it took nearly 30
years to achieve self -sufficiency in milk production. The country has produced 123 million tones
of milk in 2010-11, 127.9 million tons in 2011-12. The annual growth rate for production of milk is
increased about 5% in 2011-12 a compared to 2010-11. India continued to rank third countries of
amongst the world. The first two position being held by Union soviet Socialist Republics and
united states of America.

The diary development in India has twin objective of increasing total milk supply on
commercial basis and diversifying agricultural structure by developing dairy as a supplementary or
principal occupation which would help increasing the income of the small and marginal
agriculturists and landless labourers. Diary industry occupies an important place in Indian
economy. It embraces the production of milk. Its preparation for sale as well as manufacture of
diary products.

Apart from the nutritional importance of milk for human consumption. Dairying provides
employment to the vest number of persons with no means of production of their own and put them
to productive work so ass to enable them to contribute to the national product and earn their share
in it. It processes

tremendous potentional for providing employment to the massive rural population. It can equitably
distribute the gain and thus assists even the weakest section of our society. Further, milk is one of
the few commodities which give the producer a large share of what the consumer pays for it. Thus,
diarying is a very important instrument for the up liftment of the rural economy of our country.
Diary development on modern lives will generate additional income and employment in rural areas
itself and can act as an effective instrument for social change in rural India.

3.1.1 WORLD SCENARIO

The global diary industry is composed of a multitude of countries with unique production practice
and consumer markets. The global average number of cows per farm is about 1-2 cows; however,
as a farm business model transitions from sustenance to market production, The average herd size
and subsequent labor force increases. Diary production is unique as an agricultural commodity
because milk is produced daily, for 365 days per year. With the introduction of new technology
such as the milking parlour. The global industry trend is one of increasing farm sizes. The farm
sizes are the largest in the united states: however, The European union produces the largest quantity
of milk compared with the other global producers. Diary production is essential for economic
development and sustainable communities in rural areas. However the required capital investment
and availability and local markets and labour are continued challenges. Due to farm expansion,
international producers are faced with the new challenges related to assuring food safety and a safe
working environment for their work force. Those challenges exist in addiction to cultural
immigrant labour in many regions of the world. Continued and languages success barriers related to
an increasing dependence on immigrant labour in many regions of the world. Continued and
languages success barriers related to an increasing dependant on la information technology, of
global diary industry is vital. Continue, Therefore, research should to address the identification of a
occupational risk factors associated with the injuries and illness, as well as develop cost effective
interventions and practices that lead to minimization or elimination of these injuries and illness on a
global scale, among our valuable population of diary products and workers. Milk production is
expected to shift from high cost tom low cost countries and output growth will increasingly be
located in regions with rising demand for milk and milk products:continuing a trend evidences in
1990s. As a result of the proportion of world milk production originating in the developing
countries are projected to become more active in export markets, the developing countries as a
whole world remain substancial net imports of diary products.

Total world milk production is estimated to grow from 692 million tones in 2010 to 827
million tones in 2020, as 19% increase , 692 million global distribution milk in 200, according to
global diary outlook report 2012, released in february 2013 by global farmers. The global diary
outlook reports forecast that by 2020 tha annual production of milk grow to 827 million tone.
Production by geographic region, however, is not expected to shift significantly.

3.1.2 INDIAN SCENARIO

India has one of the largest livestock population in the world are found in India, most of which
are milk cows and 25 Fifty percent of the buffaloes and 20% of the cattle in the buffaloes. Diary
development in India has been acknowledged the world over as one of modern India's most
successful developmental programmes. Today , India is the largest milk producing country in the
world. Milk and milk products are rated as one of the most promising sectors which deserves
appreciation in a big way. When the world milk production registered negative growth of 2% ,
India performed much better with4% growth. The total milk production is over 72 million tones
and the demand for milk is estimated at around 80 million tones. By 2005 the value of Indian diary
produce was expected to be Rs.1000000 million. Foreign investment in this sector stood at Rs.3600
million which is about one fourth of total investment made in this sector. Manufacturer of casein
and lactose, largely being imported presently has a good scope. Exports of milk products has been
decimalized. The milk surplus states in India are Utharpradhesh , Punjab, Haryana, Rajasthan,
Gujarat, Maharashtra, Andhrapradhesh, Karnataka and Tamilnadu. The manufacturing of milk
products is concentrated in these milk surplus states. Today in India is largest milk producing
country in the world. The production of milk products that is milk products including infant milk
food, malted food, condensed milk and cheese are stood at 146.3 million tones in 2014 to 2015.
Production of milk powder including infant milk food had risen to 96 million tones in 2014 to
2015, varies that of malted food is at 78 million tones. Cheese and condensed milk production
stands at 75 and 82 million tones respectively. Some of plants are coming up for producing lactose,
casein and improved cheese varieties.

3.1.3 PRESENT STATUS

The Indian diary industry achieved substantial growth during the 8th Five year plan achieving an
annual output of over 60 million tones of milk. This not on;lu placed our industry second in the
world after the united states, but presently represents the sustained growth in real availability of
milk and milk products for our burgeoning population. Most important diarying has become an
important secondary source of income for millions of rural families. Improved genetic material
achieved primarily through cross breeding of cattle and upgrading of national buffalo herd has
played a significant role in increasing productivity. Gradual extension of improved husbandry
practices, increase in consumption of balanced concentrates made possible, in part, through
innovation in the field of nutrition, expanded are under fodder, greater access to veterinary care and
advances in the fight against endemic and epidemic cattle diseases have also contributed to increase
production and productivity. About three quarters of milk produced is consumed at the household
level of the milk supplied to the market about 9-11 percent is processed in over 275 diary plants and
83 milk products factory operated by cooperative. Private diary processes, and government milk
schemes in the organized sector. Milk channel through operation flood cooperatives is generally
processed in diary plants located in the rural areas and then transported into cities an towns.
Operation flood milk productions in the year 1970 account for (about 10% of total production ) is
handled by the private traders and processors. About 45% of milk production is consumed as 2
fluid milk. About 35% is processed into butter or ghee; about 7% IS processed into paneer (cottage
cheese) and other cheeses, about 40 converted into milk powder; and the balance is used for other
products such as Dahi (yogurt) and sweet meats. In recent years, there has been an increasing ice
cream production as foreign companies have invested in India about 7% IS processed into paneer
(cottage cheese) and other cheese, about 40 converted into milk powder; and the balance is used for
other products such as Dahi (yogurt) and sweet meats. In recent years, there has been an increasing
ice cream production as foreign companies have invested in India.

3.1.4 STATE SCENARIO

In Kerala, milk marketing is done on an unorganized sector. Only T8 percent of total milk
produced in the state is handled by the organized co-operative sector. Farmers own consumption
account for 25% and remaining is handled by the unorganized sector. Attempts to organize and
develop animal husbandry and dairy in Kerala started only during the first five year plan. When the
key village scheme was introduced and facilitates were provide for artificial insemination under the
scheme, around 50 artificial insemination covering a breedable, cattle population of about 5000
were started in the state, during the second five year plan. Key village centres were started to
upgrade the breed of local cattle.

During the fourth five year plan an incentive cattle development project was started for
improving the quality of cattle and hereby to raise their productivity. The project proposed cover
population of about one lakh breedable cows and other aspect of cattle development practice,
effective disease control and marketing of the livestock population.

3.2 COMPANY PROFILE

Ernakulam Regional Cooperative Milk producers Union Ltd. (Ernakulam Milk Union), Milma, was
registered on 12-09-1985 with Ernakulam, Thrissur, Kottayam and Idukki District in central Kerala
as its area of operation. The Union along with its union of-Thiruvananthapuram Regional Co-
operative Milk producers Union Ltd. And Malabar Regional Co-operative Milk producers Union
Ltd. (TRCMPU & MRCMPU) is affiliated to the Kerala Cooperative Milk Marketing Federation
Ltd. (KCMMP) was set up in 1980 as the implanting agency for Operation Flood II in the state of
Kerala. The goal of KCMMF is the “Socio-economic progress of the dairy farmer through
procuring, processing and marketing of milk”. The union has elected board and all employees
including the Managing Directors its own employees. The union procures milk from

farmers through affiliated Anand pattern Dairy Co-operatives(APCOS) as well as form the
traditional societies which are not affiliated. The union could ensure consistent and remunerative
price to milk producers even when prices of most of other agricultural products were volatile. The
prosperity of 2.90 Iakh odd milk producers of the state depends upon the Ernakulam milk. Unions
ability to provide an assured and regular market and remunerative price round the year for the milk
produced by them.

Ernakulam milk union has four dairy plants viz, Ernakulam diary at Tripunithura, Thrissur diary at
ramavarmapuram, kottayam district at vadavathoor and kattapana diary nirmala city. In addition, it
has products diary at edapally manufacturing ghee, sterilized flavoured milk, peda, ice cream,
yogurt etc.

While milk from nearby societies are procured and processed at disries, milk from hinterland is
procured through 97 bulk milk cooling units (bmcus) set up in the diary cooperative societies and
chilling centres at muvattupuzha and chalakudy.

In consideration of a common identify for the quality of milk marketed by the cooperative sector
milma joined with NDDB in adopting a common mnemonic logo device of drop and to strengthen
the marketing activities of the organization. All diaries and head office of the union have iso
9001:2008 certification.

Mission farmer property through consumer satisfaction VISION to constantly strive to provide
valued consumers with the highest quality milk products and other products with the best standards
of service by our passionate and focused work forces using of the art and technology ensuring dairy
farmers delight by better realisation of milk price and offering needed service at his/her doorstep.

3.2.1 COOPERATIVE SOCIETY

Ernakulam regional cooperative milk producer union ltd is commited to the following aspects:

1. To improve socio economic situation of the milk producers through Anand pattern of the milk
products cooperative societies and encourage production of quality milk in its area of production on
order to consistently supply safe, hygienic and healthy quality milk and milk products to consumers
and enhance the consumer satisfaction continuely improve the quality management systems
adopted 2 in this endeavour by arranged training for union employees and producers and meeting
all the statutory and regulatory requirements of the products. Milma is in constant touch with other
organisations in the sector.

2. Continuely improve the qua;lity management systems adopted 2 in this endeavour by arranging
training for union employees and producers and meeting all the statutory and regulatory
requirments of the products milma is in constant touch with other organisations in the sector.

The logo off the right crescent and the name milma in small letter under that the four cresents
represents four important departments of milma. The cresents represents procurement and technical
input department.The right cresent represents marketing department. The top most cresent represent
processing department which hold the working of other two departments lower most cresents
represents administrative department, which supports all the three departments. The name milma
iss derived from two words.

“Milk and marketing”.

PRODUCTS PROFILE

A ) MILK

1. PASTEURIZED MILK

The pasteurized homogenised enriched milk is of three varieties milma smart this is the low
cholestrol milk with 1.5 percentage fat and 9 percentage SNF for health consiuos buyers. It is
available iin 500 milk packs(Rs. 20)

Milma toned:-

Consumers are more accustomed to this milma tonned milk is hhaving 3% fat and 8.5 % snf. It is
available iin packks of 500ml (Rs. 17.50).
Milma pride:-

Standardised milk which contains 3.5% fat and 8.5% snf. It is available iin packs of 500ml (Rs.
20).

2 STERILISED FLAVOURED SKIMMED MIILK

It is prepared from pasterised skimmed milk, sweetened with 3 canesugar anmd flavoured with
cardomom . It is very tasty in chilled condition and has a storage quality of 60 days.

B) FERMENTED PRODUCT

1.SAMBHARAM OR BUTTERMILK.
This is one of the favourite beverages of kerala. Butter milk is the only product of its kind in the
market and it is very popular throughout the state. It is available in the convenient 200ml throw
away sachets.

2. CURD

It is a fermented product orepared from PASTERUIZED SKIM MILK USING CURD CULTURE
FROM NATIONAL DDIARY RESEARCH INSTITUTE (NDRI). It is available iin a 500ml packs
and in bulk.

VARIETY OF CURD

 Double toned milk (!.5% fat)

 Skimmed milk (no fat)

C) FAT PRODUCTS

1. GHEE

Ghee is akey ingredient in the most of the indian dishes. Milma produces good quality pure ghee
from butter or cream in all diaries. It is available in convenient packs ranging from 100gm to
500gm family packs.
2.BUTTER

Milma butter is prepared from the cream of milk containing 81% of fat anand lessthan 15.6%
water. Butter is marketed in salted and unsalted varieties . It is available in a range of 200gmpacks
to 500gm family packs.

COMPETITORS OF MILMA
 SAKTHI
 PDDP
 AMUL
 GOPIKAA
 GOGULAM O ROYAL
 MILK MAN
 POOJA