UNIT-I

INTRODUCTION

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 INTRODUCTION

The American Marketing Association offers the following definition

Marketing is the process of planning and executing the conception, pricing
promotion and distribution of ideas, goods and services to create exchanges that
satisfy individual and organizational goals.
In the history of world dairying the year 1998 has proved to be lucky year
for India. We have just emerged as the highest milk producing country in their
world and that too in the 50 th year of our Independence. Increasing the annual
milk production from 20million tone’s in 1970 to around 74 tone’s million in
1999 is no mean achievement. In fact it is a unique success story of India diary
development is spite of constraint and climatic vagaries.

Our country has the largest bovine population in the world. The result of
white revolution is quite visible with our per capita milk consumption rising to
215g per day in spite of the ever increasing human population

Indian diary has over the year created on identify of its own, It has also
succeeded in having a competitive edge to its low investment energy efficient
cost effective production system.

FAO (Food and Agricultural Organization) of the United Nations as

declared India as as the top milk producer in the world surpassing USA by a
recent survey. The institutional support provided by the dairying sector in India
provides round the year employment, which no other agribusiness can do.
Besides, it also provide a sufficiently this sectors contribution to the Indian
economy and its growth potentials have not yet been properly recognized. The
industrial section has been regularly receiving several forms of subsidies and
incentives since independence. The agriculture sector too has its own share of
privileges and subsides. But if one goes through the budgetary allocation of all

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the made so far. Dairying share is too insignificant as compared to any other
sector. The dairying sector is also depressed of the special banking support as is
provided to the industrial as well as agriculture sector.

The dairy industry has played a prominent role towards house hold
nutrition security and also strengthening our rural economy it has been
recognized as instrument to bring about socioeconomic transformation. Also the
dairy sector has helped national economy by emerging as the largest milk
producer in the world. The import dependent Indian dairy in soon became not
only self sufficient but also passed for an export oriented dairy in Nation. This as
been primarily attributable to the implementation of the operation flood program
launched in 1970 under the agencies of the nation dairy development board.
Architect of the white revolution Dr. Kuren deserves special compliments.
However the gains of the white revaluation achieved through the co – operatives
networking of the small and marginal formers and land less labors are needed to
be sustain to cope with the rapid transformation that is now taking place
consequent to the GATT ( General Agreement Tariff and Trade ) agreement in
establishment of the world trade Organization. In future international trade will
be strongly regulated by the WTO.

( World Trade Organization ) regime. Never and stricter sanitary and

phytosanitery standards are being framed for regulating quality standard.

The Uruguay round of multi – lateral Trade negotiations signed on 15 th

April, 1994 as well as General Agreement on Tariff (GATT) the world economies
are swiftly gearing to adjust with the situation arising due to the withdrawal of
trade subsides. The Major dairying countries of the world, which had heavily
relied on these subsides, are now readjusting their internal economies in to
produce milk at the completive price. Most of the European Nations had the
acumen of a streaming their economies along back. Several other adverse factors
such as the perceived image of the fact in relation to cardiovascular diseases,

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complete with economics of productions have led to a decrease in butter
production on global basis.

The world production of butter has declined from 5.03million tones to 4.01
in the year 1997, withdrawal of subsides coupled with reduced demand of skin
milk power has led to the decline of its production from 1500million tones to
1100million tone’s it is paradoxical that as a global all important of GATT, EU
has restarted to conscious reduction of domestic milk production, even though the
demand for cheese and whole milk is rising. Consequently to fill this gap. World
trade of cheese the gone up from 950million to 1300million Tone’s during the
1993 – 1996. Three has been an increase from 1050million Tone’s in the global
trade of whole milk powder.

EMERGING TRENDS IN MILK POCESSING

With the changed declining trend in the domestic export market as well as
profit for conventional dairy products. Such as milk power butter etc……... need
for product diversification that permits value addition longer lip-cycle and grater
income has become quite obvious. Growing awareness towards the beneficial role
of milk and milk products. In maintaining normally of human health has led to
the development of a new range of nutriceuticals or even mood elevating /
refreshing foods.

It is widely recognized that components derived from milk such as

immunoglobulin’s. Lactoperosidose, lactoferrimlysonzyme vitamin binding
proteins etc…… play an extra nutritional role. Including in the category are those
physiologically significant properties which are formed during the manufacture
of fermented milk products and cheese or even those formed during the passage
through digestive tract. Which favorably influence the microbial ecology of the
gut system. These in turn affect various biotechnical functions to protect human
health. Biotechnology has been successfully employed to develop genetically

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modified strains of dairy culture that tend to reduces the risk of entire infections
hypercholestemia rate of proliferation of cancel cells as well as augment immune
system besides offering many health promoting attributes the dairy foods that
targeted to reduces the role medicine in maintaining normal human health.

Japan is the world leader in this sector. Where the current market of US
$5.5billion is still fast growing. In the USA more than 100 food companies have
entered this areas with a turnover of US $11billions. Hence biotechnology and
bioengineering food science offers new opportunities to India’s dairy industries
which we must capitalizes through required R&D efforts, both in public and
private.
Sectors, dairy industry also fast diversifying to develop special food ingredients
derive from which can be deployed advantageously to improve the sensor quality
attributes. These include fractionated caseinates. Whey protein concentrates
enzymatic. Hydrolystates prepared by employ innovative energy efficient unit
process. Packaging is another area which receiving intensive R&D inputs for
developing low cost biodegradable material to prevent further damage to the
environment and ensure greater food safety.
However greater challenge lies before the Indian diary industry in
modernizing sector engaged the preparation of wide range of indigenous milk
product intensive scientific R&D and financial inputs are necessary to develop
industrial manufacturing and packaging system.
A part from the development of continues mechanized system for industrial
production of ghee, Khoa, Gulabjamun and Barfy. Very little progress has been
made in ths area the weakest link Is in developing appropriate packaging system.
That may conform to be international standards of product safety. Shelf life
labeling requirements it is in this context India is at to take advantage of
Technology, which could otherwise helping minimizing post harvest losses and
also accord grater physical axes in remote difficult area.
Presently FMCG (Fast Moving Consumer Goods) market is very
competitive. In this competition customers are playing major role, every company

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is giving significance importance to know the customer satisfaction it gives
suggestions and opportunities for every company.
In the present world product manufacturing is not at all problem because of
global opportunities every one could get inputs (men, machinery, material and
money) by innovative and creative nature. But the problem is to shell produced
products with effective distribution channels. The total success and failure of the
product is based on customer and consumer satisfaction. As customer each one of
us have vast number of attitudes towards products, services, advertisements and
manufactures, whenever we are asked whether we like or dislike a product,
service, we express it in items of our satisfaction and satisfied customers leads to
more customers by way of publicity. As a customer he has to know the market
conditions and consumer behavior. He has more responsibility as middle men to
give suggestions and recommendations to the company. This study has been
conducted on some important objectives to know the market conditions and
opportunities, problems of the customer.
1.2 Need and Importance of the study:-
As per medical science and scientific survey the useful of milk for human being is very
essential and there is no age factor and segment of this product to any it is useful to each and
every one in the age hierarchy factor and the milk is one of the dosage acts as vitamins for
body after drink milk. Apart from this few other brands such milky products.
Milk and its products constitute an important part of daily diet. Milk is known as the
most significant and complete food among all the food products, since early ages of human
life. It supplies body building proteins) bone forming minerals health giving vitamins energy
and also gives lactose and milk fats, etc besides providing certain essential fatty acids, it
contains nutritional for easily digestive and assailable form. All these properties make milk
an important food product in universe. In highly developed countries, milk and its products
societies normally enjoy complete freedom from diseases associated with malnutrition,
which is commonly found in developing countries with extreme milk production, and supply
methods.
As Indian economy is predominantly agricultural sector, Dairy and Animal
Husbandry form an important activity of its farmers. This Dairying activity constitutes 10%

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in total G.D.P Indian agriculture being a seasonal activity; it cannot engage farmers
throughout the year. Certain activities like Dairying, Sheep rearing poultry etc. Will have to
be taken up while major part of the milk is produced in rural area, but the demand for milk is
mainly from urban area. As urban areas have high density of population and its population is
mostly engaged in non-agricultural activities, they have to depend on rural areas for
supplying of milk. Normally urban consumers receive milk through private milk vendors
who collect milk from villages.
Procurement of Raw Milk:
Milk is procured to the dairy milk producers especially from the former from 70
villages with their respective milk co-operative societies. The average milk consumption is
nearly per day. The sales revenues per day is 1.7 lakhs and the monthly turn over will be two
crores rupees
In the procurement of milk, there occur reasons. They are
1. Season and
2. Unseasoned (lean season)
The ‘season “start from October to February. In this period, the procurement of milk
increases to 10,000 liters per day the sales will be increased to 5000 liter to 6000 liter per
day. This season is called as “FLUSH SEASON” Whereas in unseasoned i.e. from March to
September,
The procurement will be as usual that is 2000 liters per day and the sales will be 6000
liters per day
Chilling:
The procured milk is chilled at chilling centers at 4 oC the chilled milk goes to next stage
called pasteurization stage
Pasteurization:
At the pasteurization plant milk is checked for standardized SNF content. Then the milk
is he3ated at 72o C for 16 seconds. At this stage cream and marketed milk (i.e. toned milk) are
differentiated. This cream is used in the preparation of ghee district by pockets.

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1.3 OBJECTIVES OF THE STUDY.

This is exclusively conducted on customers who are buying Swakrushi

milk this is bring distributed by mwed (Mulkanoor Womens Co-Operative Dairy)
through agents and customers (shop holders). The other objectives of the study
are as follow.
1) To determine the awareness among the customers about Swakrushi.
2) To study various reasons of customers for using Swakrushi milk.
3) To find out what are another milk related products of Swakrushi are
being purchased by the customers.
4) To know the satisfaction level and the problems of the customers. With
reference to quality, price and supply.
5) To extract qualitative info from customer suggestions for improving
strategies.

1.4 Scope of the Study:-

The dairying, which was brought under public sector, is best with managerial,
organizational and financial problems besides keen competition from the private sector in a
mixed economy system adopted in India.
 For the healthy growth of Dairying under public sector, the problems with regard
to the above aspects have to be first identified and then analyzed to seek solutions.
 Through this study is mainly based upon investigation done by the researcher in
Warangal, the major aspects can be generalized with marginal regional variations.
 Though the Government through its various commissions and expert committees
has been trying a number of models for the management of Industry like
departmental supervision, corporative management and now producer's co-
operative Federation. Hence the need for an independent study.

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In India, there are many problems in marketing of milk. The main problems are lack of
adequate and timely supply of milk, poor quality and adulteration of milk, leakage of
packets, high & low discrimination of prices of milk etc. in view of these problems, Govt., of
India adopt several measures to improve the marketing system,. Quality and sales of milk in
rural as well as in urban areas in Indian are covered by Dairy, co-operative societies which
have take up the responsibility of improving the quality and sales of milk.
NEED OF THE STUDY:
Sales and distribution panel to prepared primary for decision-making. They play dominant
role in setting the framework of managerial decisions. The information provided in the
marketing of the product is immense use in making decisions through analysis and
interpretations gathering distribution channels and making it in easier from to get make more
effectively and efficiently.
Sales and distribution is the process of placing the product knowing the supply and
demand. An important role of a marketing channel is to fill the gaps between the
production and consumption process. These gaps can be in relation to time, space,
quantity and variety.
Marketing channels play a significant role in reducing these gaps and promoting the
products. Various techniques used for promotion of products are discounts, promotional
schemes, etc.
 A marketing channel is an organized network of agencies and institutions, which link
producers and users to accomplish the marketing task.
 Role of marketing channel is to fill gaps in production and consumption process and
promote products through promotional activities.
 Functions of marketing channel include facilitating the exchange process, alleviating
discrepancies, standardizing transactions, matching buyers and sellers, providing
customer service, etc.
1.6 Research Methodology:-
This survey is conducted to study the panel of selling and distribution process by which
effective in sales. For this purpose we have selected 120 respondents from Warangal
district. To collect primary data from respondents we designed a schedule. The schedule
contains questions which are as follows:

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 a) Personal identification
b) Social background.
c) About the study.
The collected information is edited, classified tabulated the data is analyzed & interpreted.
Finally conclusions are drawn and suggestions are being offered.
Sample of the study: - 60 respondents selected who are existing distributors of
Swakrushi Dairy Milk to measure channels of distribution.
Collection of data:
a. Primary data
It is collected through questionnaire – Personal discussions – schedules served – with the
experts.
b. Secondary data
The data is collected through literature published in various articles relating to
manufacturing process to selling to the customers. The information also gathered from
various media – print and electronic, news papers, magazines, terms and conditions of
Swakrushi brands and Internet.
Period of study:
The study has confined to the limited period only I.e. For 45 days.

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1.7 CHAPTERISATION SCHEME
The proposed study is organized into four chapters for the sake of convenience and ease
of reporting. The details of are as follows.

CHAPTER: 1. The first chapter titled ‘ introduction ‘ is introductory in nature deals

with introduction of study ,theoretical concept , Need and importance , objectives of
study , scope , Data and methodology , limitations of the study , and details of
chapterization scheme .

CHAPTER: 2. ‘Profile of MULKANOOR WOMENS COOPERATIVE DAIRY”.

CHAPTER: 3. ‘Data Analysis & Interpretation ‘The study is confined to the secondary
source of data and figures are taken from the annual reports and suggestions of various
accountants.

CHAPTER: 4. ‘Conclusions and suggestions ‘tries to present the conclusions with have
emerged from the main findings of the study and offers suggestions

1.8 LIMITATIONS OF THE STUDY :

1. I have collected 60 samples only because the time period was very
limit.
2. The study was conducted in Warangal only. So this study was
limited to particular Area.
3. The sample is insignificant to total distribution channels of Warangal district
and thus the findings cannot be generalized.
4. In certain cases the data is collected through observation. Such data may not
be accurate and therefore the findings of the study can be called as near to
accuracy only.

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5. This study is biased upon only existing sellers and retailers because we cannot
take others who don’t know about the product concept to say about selling and
distribution line to get the product to sale in the market.

UNIT-II
ORGANIZATION PROFILE

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 ORGANIZATION PROFILE

The Mulukanoor women’s cooperative dairy started procurement of milk

on 17 August 2002. However the story began much before in 1997. The women’s
thrift cooperative and their associations were having huge ideal cash balance in
spite of leading their numbers to barrow, they have to pay interest to members on
their thrift and also cost the founds. The ideal sounds were one performing assets
(NPA. S), generating no leaders. The number who now had access to capital was
looking for ways of investment.
They started exploring ways of investment which would benefit a large
section of members after a lot of brain – storming, they realized that many
women numbers had milk cattle and were already selling milk. Thus emerged the
idea of daring on cooperative basic. Sahabikasa agreed to support them in this
new venture in financial, promotional and training aspects. When approached by
Sahabicasa. The national dairy development board (NDDB) also agreed to extend
their technical support. The Mulukanoor co-operative society (PACS) healed the
union by talking the responsibility of supervising the construction of the building
and installation of the machinery of the plant. The mulukanoor. Women’s Dairy
became a reality.

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Membership and Board:
As on 31.12.2002 the union has 67 member cooperatives which have
membership of 8000. The target was to promote 72 cooperatives and me
membership in 5 years as 11 thousand and 15 thousand by the end of 10 years,
within a radius of 25kms around Mulukanoor. The average membership of a
cooperative is 120. A primary cooperative has a 10 members board. As on
31.12.2005 the union has 100 member cooperatives which have a membership of
16000.

The board of the union consists of 12 board members who are elected by
the presidents of member cooperative from amongst themselves. Each cluster of 5
primary cooperatives is represented by on board member.
Registration Status:
Of the 100 primaries, 69 are registered under Macs Act. The union was
registered on 23 October 2000, by three promoter cooperatives.
Procurement and payment :
As on date the union is collecting 28000 liters of milk per day (LPD). The
last payment made to cooperative was Rs. 30lakhs, for milk supplied. The milk
received on the first day was 1400 liters and the first payment was Rs. 8.47lakhs
for milk supplied. The payments are amide fortnightly to cooperatives and they in
turn pay their members in the same way. At the peak of the season, this is the
month of October, the supply of milk rose to 17,000 LPD and the highest amount
paid by the union was Rs. 52.52lakhs. The processing capacity of the plant is
50,000 liters per day.
The average milk procured by a cooperative is 225 LPD. Average payment
per fortnight is Rs. 32,000 per cooperative.
Services :
The union also arranges supply of cattle feed to cooperatives which in turn
provide the dame to their members a cash payment. It has also provided milk
testers to members cooperatives on loans basis. With the assistance of

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Sahabikasa, the union conducted a series of training programs in management,
maintained of accounts and records and primary health maintenance of milk
cattle. Twelve veterinary medical assistants were trained and 20 more were
provided training in primary health care of milk cattle.
Investment :
The total expenditure in cured by the union for the certain of the plant as
on to 31.12.20.2003 was Rs.331.37lakhs. This was provided by sahavikasa as a
loan to the milk union and is repayable over a period of eight (?) years.

Funds :
With a view to gain self reliance two unique features have been introduced.
The share capital is linked to patronage i.e. Rs. 100 per liters in case of member’s
primaries and a minimum of three shares of Rs1000 up to 1000 LPD with
additional share for every 50 LP Ds procured. By 5 th year the dairy is expected to
have Rs. 25lakhs as total share capital of members. A part from these 5% deposits
are being collected from the first day of operations based on the milk bill
rendered every 15 days these are expected to amount of to Rs. 105lakhs by 5 th
year and Rs. 268lakhs by 10 th year. Even by pessimistic estimates, dairy to the
features maintained about. By 7 th year the dairy would be completely owned by
women themselves This will be possible considering some of the profits
generated, apart from share capital and deposits will be used from amortization of
the loan taken for initial investment from Sahavikasa.
These calculations are made after deducting the interest on deposits it is
given to member. The project has several favorable conditions prevailing which
will ensure success. Some of them are, the wide spread existence of cooperative
institutions in the union area of which a large number are also function in two
their structures similar to the structure of the project, a strong brand name of the
mulukanoor co – operative rural bank that is being used both in the villages for
mobilizing members and in urban markets with consumers due to their informal
associations with the project. Another factor which is in favors is the distance

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both in the procurement and marketing side have been deliberately kept a
minimum level. This helps in reducing the spoilage of milk and transpiration
cost. The project also has several opportunities for collaborative efforts in all
services of dairy. The fact that the membership has already risen to 8000 within a
short span is a positive indicators that authenticates this belief.

AIMS MULKANOOR WOMENS CO-OPERATIVE DAIRY :

The aims of MWCD are :
1. To provide market facilities to the rural farmers, for milk producer
through co-operatives organized for the purpose.
2. Reasonable remunerative price to the milk produced on quality basis
3. To provide hygienic milk and hits products to the urban consumers.
4. MWCD has assured a new dimension as a powerful strategy for rural
development, creating a new hope for growth with social justice,
generating employment and income opportunities to thousand of rural
producers.
OBJECTIVES OF THE MULKANOOR WOMENS CO OPERATIVE DAIRY :
The objective of MWCD are
1. Procurement of milk from the milk producers situated within the control of
units.
2. To provide market for the rural unit producers and develop economic
strength in the rural area.
3. Supply of the fresh and quality milk to Warangal, Hanamkonda, Kazipet
and Godavarikhani. At reasonable price
4. To avoid the distance and inconvenience of consumers.
5. To development entrepreneurship.

ABOUT SWAKRUSHI MILK:

Mulukanoor women’s cooperative dairy offers the widest spectrum of milk
product under the brand name swakrushi brand connectors is famous for its

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 purity, quality and price. The data regarding the classification of swakrushi
milk with specification is given in the table.
TYPES OF SWAKRUSHI MILK:

Types of Milk % of Fat % of Snf

Toned Milk 3.0 8.5
Whole milk 6.0 9.0

The data of the table reveals the percentage of fat and solid not fat (snf) in
each type of swakrushi milk.
MILK PROCUREMENT AND SALES OF MILK:

The process of procurement is as follows:

1. Collecting the milk from varies producers at 100 milk collection centers.
2. Test the sample milk to find the standard of the milk at collection centers.
3. Sending the milk to the dairy. Then, again test the “sample milk” to find
the standard of the milk
4. After testing them ilk will be stored at milk chilling unit.
5. From dairy milk will be brought to market for distribution.
6. At, the market, the agents (who are appointed by Mulukanoor women’s
cooperative dairy) will be distributing the milk to the consumers for cash.
This primary information of milk procurement and sales information of MWCD is
shown in the below table.

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 CHAPTER-III
THEORETICAL ASPECTS

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 CUSTOMER SATISFACTION

A number of theoretical approaches have been utilized to explain the relationship

between disconfirmation and satisfaction.1 Many theories have been used to understand
the process through which customers form satisfaction judgments. The theories can be
broadly classified under three groups: Expectancy disconfirmation, Equity, and
Attribution. Still again there are a number of theories surrounding the satisfaction and
service paradigm. 2 The expectancy disconfirmation theory suggests that consumers form
satisfaction judgments by evaluating actual product/service. Four psychological theories
were identified by Anderson that can be used to explain the impact of expectancy or
satisfaction: Assimilation, Contrast, Generalised Negativity, and Assimilation-Contrast.3
1. MEASUREMENT OF SATISFACTION Some of the theories are discussed in this
chapter.

The heart of the satisfaction process is the comparison of what was expected with the
product or service’s performance – this process has traditionally been described as the
‘confirmation / disconfirmation’ process.4 First, customers would form expectations prior
to purchasing a product or service. Second, consumption of or experience with the
product or service produces a level of perceived quality that is influenced by
expectations.5 If perceived performance is only slightly less than expected performance,
assimilation will occur, perceived performance will be adjusted upward to equal
expectations. If perceived performance lags expectations substantially, contrast will
occur, and the shortfall in the perceived performance will be exaggerated. 6 91 Fig.4. 1.
The Satisfaction Function7 Fig.1 shows the satisfaction function between perceived
quality and expectations. Performance exceeds expectations, satisfaction increases, but at
a decreasing rate.

As perceived performance falls short of expectations, the disconfirmation is more.

Satisfaction can be determined by subjective (e.g. customer needs, emotions) and
objective factors (e.g. product and service features). Applying to the hospitality industry,

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 there have been numerous studies that examine attributes that travellers may find
important regarding customer satisfaction. Service quality and customer satisfaction are
distinct concepts, although they are closely related.8 Atkinson (1988) found out that
cleanliness, security, value for money and courtesy of staff determine customer
satisfaction.9 Knutson (1988) revealed that room cleanliness and comfort, convenience of
location, prompt service, safety and security, and friendliness of employees are
important.10 A study conducted by Akan (1995) claimed that the vital factors are the
behaviour of employees, cleanliness and timeliness.11 On the other hand the study by
Choi and Chu (2001) concluded that staff 92 quality, room qualities, and value are the top
three hotel factors that determine travellers’ satisfaction.12 2.

VARIOUS THEORIES OF CUSTOMER SATISFACTION

Consistency theories suggest that when the expectations and the actual product
performance do not match the consumer will feel some degree of tension. In order to
relieve this tension the consumer will make adjustments either in expectations or in the
perceptions of the product’s actual performance. Four theoretical approaches have been
advanced under the umbrella of consistency theory: (1) Assimilation theory; (2) Contrast
theory; (3) Assimilation-Contrast theory; and (4) Negativity theory.1

Assimilation Theory Assimilation theory is based on Festinger’s (1957) dissonance

theory. Dissonance theory posits that consumers make some kind of cognitive
comparison between expectations about the product and the perceived product
performance.14 This view of the consumer post-usage evaluation was introduced into the
satisfaction literature in the form of assimilation theory.15

According to Anderson (1973), consumers seek to avoid dissonance by adjusting

perceptions about a given product to bring it more in line with expectations.16
Consumers can also reduce the tension resulting from a discrepancy between
expectations and product performance either by distorting expectations so that they
coincide with perceived product performance or by raising the level of satisfaction by

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minimizing the relative importance of the disconfirmation experienced.17 93 2.1.1.
Assimilation Theory – Criticism Payton et al (2003) argues that Assimilation theory has a
number of shortcomings. First, the approach assumes that there is a relationship between
expectation and satisfaction but does not specify how disconfirmation of an expectation
leads to either satisfaction or dissatisfaction.18 Second, the theory also assumes that
consumers are motivated enough to adjust either their expectations or their perceptions
about the performance of the product.19 .

A number of researchers have found that controlling for actual product performance
can lead to a positive relationship between expectation and satisfaction.20 Therefore, it
would appear that dissatisfaction could never occur unless the evaluative processes were
to begin with negative consumer expectations.21 2.2. Contrast Theory Contrast theory
was first introduced by Hovland, Harvey and Sherif (1987).22 Dawes et al (1972) define
contrast theory as the tendency to magnify the discrepancy between one’s own attitudes
and the attitudes represented by opinion statements.23 Contrast theory presents an
alternative view of the consumer post-usage evaluation process than was presented in
assimilation theory in that post-usage evaluations lead to results in opposite predictions
for the effects of expectations on satisfaction.24

While assimilation theory posits that consumers will seek to minimize the
discrepancy between expectation and performance, contrast theory holds that a surprise
effect occurs leading to the discrepancy being magnified or exaggerated.25 According to
the contrast theory, any discrepancy of experience from expectations will be exaggerated
in the direction of discrepancy.

If the firm raises expectations in his advertising, and then a customer’s experience is
only slightly less 94 than that promised, the product/service would be rejected as totally
un-satisfactory. Conversely, under-promising in advertising and over-delivering will
cause positive disconfirmation also to be exaggerated.26 2.2.1. Contrast Theory –
Criticism Several studies in the marketing literature have offered some support for this
theory.27 The contrast theory of customer satisfaction predicts customer reaction instead

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of reducing dissonance; the consumer will magnify the difference between expectation
and the performance of the product/service.28 2.3.
Assimilation-Contrast Theory Assimilation-contrast theory was introduced by
Anderson (1973) in the context of post-exposure product performance based on Sherif
and Hovland’s (1961) discussion of assimilation and contrast effect.29 Assimilation-
contrast theory suggests that if performance is within a customer’s latitude (range) of
acceptance, even though it may fall short of expectation, the discrepancy will be
disregarded – assimilation will operate and the performance will be deemed as
acceptable. If performance falls within the latitude of rejection, contrast will prevail and
the difference will be exaggerated, the produce/service deemed unacceptable.30 The
assimilation-contrast theory has been proposed as yet another way to explain the
relationships among the variables in the disconfirmation model.31 This theory is a
combination of both the assimilation and the contrast theories.

“This paradigm posits that satisfaction is a function of the magnitude of the

discrepancy between expected and perceived performance. As with assimilation theory,
the 95 consumers will tend to assimilate or adjust differences in perceptions about
product performance to bring it in line with prior expectations but only if the discrepancy
is relatively small.32 Assimilation-contrast theory attempts illustrate that both the
assimilation and the contrast theory paradigms have magnitude of the discrepancy that
might also influence whether the assimilation effect or the contrast effect would be
observed…. when product performance is difficult to judge, expectations may dominate
and assimilation effects will be observed… contrast effect would result in high
involvement circumstances. The strength of the expectations may also affect whether
assimilation or contrast effects are observed”.34

Assimilation-Contrast Theory – Criticism Anderson (1973) argues that Cardozo’s

(1965) attempt at reconciling the two earlier theories was methodologically flawed.37
The attempts by various researchers to test this theory empirically have brought out
mixed results. Olson and Dover (1979) and Anderson (1973) found some evidence to
support the assimilation theory approach. In discussing both of these studies, however,

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Oliver (1980a) argues that only measured expectations and assumed that there were
perceptual differences between disconfirmation or satisfaction.38 2.4. Negativity Theory
This theory developed by Carlsmith and Aronson (1963) suggests that any discrepancy of
performance from expectations will disrupt the individual, producing ‘negative
energy’.39 Negative theory has its foundations in the disconfirmation process.

Negative theory states that when expectations are strongly held, consumers will
respond negatively to any disconfirmation. “Accordingly dissatisfaction will occur if
perceived performance is less than expectations or if perceived performance exceeds
expectations.40 97 This theory developed by Carlsmith and Aronson (1963) suggests that
any discrepancy of performance from expectations will disrupt the individual, producing
“negative energy.” Affective feelings toward a product or service will be inversely related
to the magnitude of the discrepancy.41 2.5.

Disconfirmation Theory Disconfirmation theory argues that ‘satisfaction is related to

the size and direction of the disconfirmation experience that occurs as a result of
comparing service performance against expectations’.42 Szymanski and Henard found in
the meta-analysis that the disconfirmation paradigm is the best predictor of customer
satisfaction.43 Ekinci et al (2004) cites Oliver’s updated definition on the disconfirmation
theory,
which states “Satisfaction is the guest’s fulfilment response. It is a judgement that a
product or service feature, or the product or service itself, provided (or is providing) a
pleasurable level of consumption-related fulfilment, including levels of under- or over-
fulfilment”.44 Fig.4.3. Disconfirmation Theory Model 98 Mattila, A & O’Neill, J.W.
(2003) discuss that “Amongst the most popular satisfaction theories is the
disconfirmation theory, which argues that satisfaction is related to the size and direction
of the disconfirmation experience that occurs as a result of comparing service
performance against expectations. Basically, satisfaction is the result of direct
experiences with products or services, and it occurs by comparing perceptions against a
standard (e.g. expectations). Research also indicates that how the service was delivered is
more important than the outcome of the service process, and dissatisfaction towards the

24
service often simply occurs when guest’s perceptions do not meet their expectations.45
2.6. Cognitive Dissonance Theory Cognitive dissonance is an uncomfortable feeling
caused by holding two contradictory ideas simultaneously.

The theory of cognitive dissonance proposes motivational drive to reduce dissonance

by changing their attitudes, beliefs, and behaviours, or by justifying or rationalizing
them.46 The phenomenon of cognitive dissonance, originally stated by Festinger in 1957,
has been quickly adopted by consumer behaviour research. “Described as a
psychologically uncomfortable state that arises from the existence of contradictory
(dissonant, non-fitting) relations among cognitive elements (Festinger 1957) cognitive
dissonance revealed high exploratory power in explaining the state of discomfort buyers
are often in after they made a purchase.47

25
 UNIT-IV
DATA ANALYSIS &
INTERPRETATION

26
 1) Available Brands of milk.
Table No: 1
S.No PARTICULARS RESPONDENTS PERCENTAGE
A SWAKRUSHI 45 75
B VIJAYA 8 15
C THIRUMALA 5 7
D OTHERS 2 3
TOTAL 60 100
Source compile from questionnaire:
80

70

60

50

40

30

20

10

0
SWAKRUSHI VIJAYA THIRUMALA OTHERS

INTERPRETATION :
Above table is showing 75% of the respondents has given their opinion on
available of Swakrushi milk and 15% of respondents has given opinion of
Vijaya milk or 7% Thirumla milk remaining 3% all have suggested on other
product.

2) Main source of milk.

Table No: 2

27
 S.No PARTICULARS RESPONDENTS PERCENTAGE
A Direct from 01 02
manufactures
B Other sources 59 98
Total 60 100
Source compiled from questionnaire:
120

100

80

60

40

20

0
Direct from Manufactures Other sources

INTERPRETATION :
According to the analysis observed from the above table more numbers
customers i.e. 98% have get milk through other sources. The remaining
customer’s i.e 2% they get milk direct from manufactures

Table No: 3
3. Brand do you get earlier.
S.No PARTICULARS RESPONDENTS PERCENTAGE
A SWAKRUSHI 56 96

28
 B VIJAYA 03 03
C THIRUMALA 0 0
D OTHERS 01 01
TOTAL 60 100
Source compile from questionnaire:

120

100

80

60

40

20

0
SWAKRUSHI VIJAYA THIRUMALA OTHERS

INTERPRETATION :
According to the analysis we can observe from the above table more
number of customers i.e. 96% are getting milk earlier and very less customers
i.e. 3% people getting Vijaya brand milk earlier and remaining 1% people
getting other brand product

3) Preferable time to take milk in morning hours.

Table No: 4

S.No PARTICULARS RESPONDENTS PERCENTAGE

A 4AM – 5AM 00 00
B 5AM – 6AM 16 20

29
 C 6AM – 7AM 39 74
D 7AM – 8AM 05 06
Total 60 100
Source compile from questionnaire:

80
70
60
50
40
30
20
10
0
4AM - 5AM 4AM - 6AM 6AM - 7AM 7AM - 8AM

INTERPRETATION :
According to the analysis we can observe from the above table more
number of customers i.e. 74% are getting milk in between of 6:00AM to
7:00PM and the average no of consumers are getting milk between the time of
4:00AM to 6:00AM i.e. 20% and less to of customers are getting milk after
7:00AM i.e. 06% of the total sample.

4) The distributor belongs to the one company milk.

Table No: 5
S.No PARTICULARS RESPONDENTS PERCENTAGE
A YES 48 94
B NO 02 06
TOTAL 60 100
Source compile from questionnaire:

30
 100

90

80

70

60

50

40

30

20

10

0
YES NO

INTERPRETATION :
By observe the above table shows the more respondents give appropriate
answer i.e. yes (94%) regarding as distributor belongs to one company and the
less customer given negative answer i.e 06%, the distributor not belongs to
one company.

6)Preferable distribution channel of consumer.

Table No: 6
S.No PARTICULARS RESPONDENTS PERCENTAGE
Directfrom
A 7 13
Manufactures
B Agents 53 87
C Other sources 00 00

31
 Total 60 100
Source compile from questionnaire:

100
90
80
70
60
50
40
30
20
10
0
Direct from manufacturers Agents Other sources

INTERPRETATION :
The observation of analysis from more number of customers i.e. 87% , they
have the profitable to distribution channel is through agent, and the less
customer i.e. 13% people they had the profitable to distribution channel is
through direct from manufacturers.

6) Payment system of customer.

Table No: 7
S.No PARTICULARS RESPONDENTS PERCENTAE
A On – Time Payment 58 96
B One – Day Time 02 4
C One – Week Payment 00 00
Total 60 100

32
 Source compile from questionnaire:

120

100

80

60

40

20

0
On- Time Payment One - Day Time One - Week Payment

INTERPRETATION :
By the observation of above table the more number of customers i.e.
(96%), they like to on – time payment system and the remaining les people i.e.
(04%) they like to one day time payment system of the total sample.

8)Are you interested to take any other products from Swakrushi.

Table No: 8
S.No PARTICULARS RESPONDENTS PERCENTAGE
A YES 59 99
B NO 01 01
TOTAL 60 100
Source compile from questionnaire:

33
 120

100

80

60

40

20

0
YES `

INTERPRETATION :
By observe the above table shows the more number of customers i.e. (99%)
they want to fell other new products from Swakruthi dairy and very less
customers i.e. (01%) they don’t want to sell any new products from swakrushi.

9) Preferred milk type by you.

Table No: 9
S.No PARTICULARS RESPONDENTS PERCENTAGE
A Toned Milk 25 44%
B Double Toned 20 31%
C Standard Milk 15 25%
Total 60 100%
Source compile from questionnaire:

34
 50

45

40

35

30

25

20

15

10

0
Toned Milk Double Toned Standard Milk

INTERPRETATION :
From the above table it is observed that 44% of the respondents are prefer toned
milk and 3% of the respondents are prefer double toned milk and 25% of the
respondents are prefer standard milk.

10) Do you expect any other products from Swakrushi?

Table No: 10
S.No OPTIONS RESPONDENTS PERCENTAGE
A Yes 35 60%
B No 25 40%
Total 60 100%
Source compile from questionnaire:

35
 70

60

50

40

30

20

10

0
Yes No

INTERPRETATION :
From the above table it is observed that 60% of the respondents are
expecting other products from Swakrushi and 40% of the respondents are not
expected.

11) The other products from Swakrushi.

Table No: 11
S.No PARTICULARS RESPONDENTS PERCENTAGE
A Ghee 34 62%
B Curd 10 20.8%
C A and B 8 16.7%
Total 60 100
Source compile from questionnaire:

36
 70

60

50

40

30

20

10

0
Ghee Curb A and B

INTERPRETATION :
From the above table it is observed that 63% of the respondents are no
ghee and 21% of the respondents are know the other of Swaraswathi is curd
and 17% of the respondents are know the other product of Swakrushi is curd
and 17% curd the respondents know curd and ghee.

12) Other brand do you prefer in case of non availability of Swakrushi milk.
Table No: 12

S.No PARTICULARS RESPONDENTS PERCENTAGE

A Vijaya 28 45%
B Nagarjuna 20 30%
C Other 12 25%
Total 60 100%
Source compile from questionnaire:

37
 50

45

40

35

30

25

20

15

10

0
Vijaya Nagarjuna Other

INTERPRETATION :
From the above table it is observed that 45% of the respondents are prefer
Vijaya milk and 30% of the respondents are prefer Nagarjuna milk and 25% of
the respondents are prefer other.

13) Satisfaction with the service provided by the Swakrushi milk.

Table No: 13

S.No PARTICULARS RESPONDENTS PERCENTAGE

A Highly satisfied 42 67%

B Satisfied 13 23%

C Not Satisfied 05 10%

Total 60 100%
Source compile from questionnaire:

38
 80

70

60

50

40

30

20

10

0
Highly Satisfied Satisfied Not Satisfied

INTERPRETATION :
From the above table it is observed that 67% of the respondents are highly
satisfied and 23% of the respondents are satisfied and 10% of the respondents are
not satisfied.

14) Maintaining of relationship with Swakrushi.

Table No: 14
S.No PARTICULARS RESPONDENTS PERCENTAGE
A Yes 48 76%
B No 12 24%
Total 60 100%
Source compile from questionnaire:

39
 80

70

60

50

40

30

20

10

0
Yes No

INTERPRETATION :
From the above table it is observed that 76% of the respondents said that they
want to continue the relationship with Swakrushi and 24% of the respondents said
that they don’t want to continue the relationship with Swakrushi.

15) Problems you face like leakage/spoilage.

Table No: 15
S.No PARTICULARS RESPONDENTS PERCENTAGE
A Somes Times 3 5%
B Never 57 95%
C Always 0 0%
Total 60 100%
Source compile from questionnaire:

40
 100

90

80

70

60

50

40

30

20

10

0
Some Times Never Always

INTERPRETATION :
From the above table it is observed that 95% of the respondents said that they
never face any problems and 5% of the respondents said that they are facing
sometimes.

16) Quantity you purchase regularly.

Table No: 16
S.No PARTICULARS RESPONDENTS PERCENTAGE
A ½ liter 19 35%
B 1-2 liters 26 45%
C 2-3 liters 12 15%
D Above 3 liters 3 5%
Total 60 100%
Source compile from questionnaire:

41
 50

45

40

35

30

25

20

15

10

0
1/2 liter 1-2 liter 2-3 liter Above 3 liter

INTERPRETATION :
From the above table it is observed that 45% of the respondents are purchasing 1-
2 liters and 35% of the respondents are ½ liter, 15% of the respondents are 2-3
liters and 5% of the respondents are above 3 liters.

17) Purchase of milk.

Table No: 17
S.No PARTICULARS RESPONDENTS PERCENTAGE
A Kirana Shops 12 16%
B Retail Outlets 15 25%
C Door delivery 25 47%
D Dairy parlors 08 12%
Total 60 100%
Source compile from questionnaire:

42
 50
45
40
35
30
25
20
15
10
5
0
Kirana Shops Retail outlets Door delivery Dairy parlors

INTERPRETATION :
From the above table it is observed that 47% of the respondents are
purchasing through door delivery, 25% of the respondents are from retail and
outlets 16% of the respondents are purchasing from kirana shops and 12% of
the respondents are from dairy parlors.

18) Pricing comparison of Swakrushi milk as compared with other.

Table No: 18
S.No PARTICULARS RESPONDENTS PERCENTAGE
A Competitive 20 32%
B Expensive 14 20%
C Reasonable 26 48%
Total 60 100%
Source compile from questionnaire:

43
 60

50

40

30

20

10

0
Competitive Expensive Reasonable

INTERPRETATION :
From the above it is observed that 48% of the respondents are said that
reasonable, 32% of the respondents are said that competitive and 20% of the
respondents are said that expensive.

19) Recommendation others to buy Swakrushi milk.

Table No: 19
S.No PARTICULARS RESPONDENTS PERCENTAGE
A Yes 25 45%
B No 35 55%
Total 60 100%
Source compile from questionnaire:

44
 60

50

40

30

20

10

0
Yes No

INTERPRETATION :
From the above table it is observed that 55% of the respondents are not
interested to motivate and 45% of the respondents are say yes to motivate.

45
 UNIT-V
CONCLUSIONS & SUGGESTIONS

CONCLUSIONS :

On the basis of questionnaire used for the study of customer satisfaction the
following conclusions have been made.

1. Most of the market share has been occupied by the Swakrushi milk. Vijaya
dairy milk in Second position.
2. Only Swakrushi milk is available at present market to consume early
morning.

46
3. More than 97% of customers are satisfying in supply of milk.
4. 67.5% of customers are giving more priority to sell only swakrushi
branded milk and reaming consumers are not showing their interest to buy
other brands.
5. 79.4% of customers are giving more priority to sell only swakrushi
branded milk and reaming consumers are not showing their interest to bury
other brands.
6. 87% of customers are proffering agents to get milk. Only 13% of
customers are interested to get milk from manufacturer.
7. Most of the customers are preferring swakrushi branded milk onetime
payment system.
8. 94% of customers are being satisfied by the quality of milk. And the agent
is proving door to door delivery facility and all consumers’ suggestions are
being followed by customers.

SUGGESTIONS:

1. For increase in the product awareness of finding new customers of the

company must advertise its product in different media and should adopt
different Market mix.
2. To capture more market Share Company has to reduce the price off to
certain extent in line with the competitors.

47
3. Market demand is very high exclusively for Swakrushi milk in
Warangal so company is not satisfying consumers so it should go for
different areas in search of milk.
4. Presently in Warangal, market agents are not covering all the areas so
company should allocate the agent.
5. If all they want increase the customers they should spend amount on
advertising.

48
 QUESTIONNAIRE

CUSTOMER SATISFACTION TOWARDS SWAKRUSHI MILK

(With Special Reference to Mulkanoor Women Co-Operative Dairy)

Name : Date :
Address :

49
Contact No. :
Dist :
Pin :

1) What are the Available brands of milk?

a) Swakrushi b) Vijaya c) Thirumala d) Others
2) What is the main sources of milk?
a) Direct from Distributor b) Agents c)Retail shop
3) Which brand do you get earlier?
a) Swakrushi b) Vijaya c) Thirumala d) Others
4) The distributor belongs to the one company milk?
a) Yes b) No
5) Preferable distribution channel of consumer?
a) Direct from manufacturers b) Agents c) Other sources
6) Payment system of customer?.
a) On-Time Payment b)One-Day Time c)One-Week Payment d) one month
7) Are you interested to take any other products from Swakrushi?
a) Yes b) No
8) Which type of milk do you prefer ?
a) Toned milk b) double toned milk c) standard milk
9) Do you expect any other products from Swakrushi ?
a) Yes b) No
10)If yes what are the other products from Swakrushi?
a) Ghee b) curd c) a and b

11) Which other brand do you prefer in case of non availability of Swakrushi
milk ?
a)Vijaya b) nagarjuna c) other
12) Are you satisfied with the service provided by the Swakrushi milk?
a)Highly satisfied b) satisfied c) not satisfied
13) Would you like to continue the relationship with Swakrushi?

50
 a)You b) no
14) Do you face any problems like leakage / spoilage?
a)Sometimes b) never c) always
15) How much quantity do you purchase regularly ?
a)½ litter b) 1-2 litter
c) 2-3 litter d) above 3 litters
16) From where do you purchase of milk ?
a)Kirana shops b) retail outlets
c) door delivery d) dairy parlors
17) How do you feel about the pricing of Swakrushi milk as comparaed with
other?
a)Competitive b) Expensive c) Reasonable
18) Do you motivate others to buy Swakrushi milk ?
a)Yes b) No

51
 BIBLIOGRAPHY

BIBILOGRAPHY
 MARKETING MANAGEMENT, Philip Kotler ( 2 nd Edition ).
 MARKETING MANAGEMENT, Czikota Kutabe, ( 2 nd Edition).
 SERVICE MARKETING, Tata Mc. Graw Hill, ( 3 rd Edition ).

52
MAGAZINES & NEWSPAPERS
 Business Today
 Time of India
 Economic Times

53