Mother Dairy MPR Major and Minor Projects
Mother Dairy MPR Major and Minor Projects
Mother Dairy MPR Major and Minor Projects
A
PROJECT & VIVA (310)
ON
“CUSTOMER SATISFACTION ON MOTHER DAIRY”
SUBMITTED BY
YOGESH KUMAR
ENROLLMENT NO
02551401715
STUDENT DECLARATION
YOGESH KUMAR
This work has been done in partial fulfillment of the requirement for the award of the degree of
Bachelor of Business Administration From Fairfield Institute Of Management & Technology ,
New Delhi and has not been submitted anywhere in any other university for the award of any
degree.
Signature of Guide
ACKNOWLEDGEMENT
It is pleasure to acknowledge many people who knowingly and unwittingly helped me, to
complete my project. First of all let me praise God for all the blessings, which carried me
through all those years?
First & foremost, I would like to express my regards to Dr. SUMAN YADAV for her constant
encouragement and support. I would also like to express my immense gratitude towards all the
lecturers of our college for providing the invaluable knowledge, guidance, encouragement
extended during the completion of this project.
I extend my sincere gratitude to all my teachers and guide who made unforgettable contribution.
Due to their sincere efforts I was able to excel in the work entrusted upon me.
YOGESH KUMAR
TABLE OF CONTENT
1 Student declaration 2
3 Acknowledgement 4
4 Abstract 6
12 Annexures 53-55
13 Bibliography 56-57
ABSTRACT
The report consists of the details on Mother Dairy Ltd. It is one of the most effluent company‟s
of India for processed milk and milk products. The main aim of it is the welfare of the society by
providing quality milk to its consumers at an affordable price. This report also contains the
detailed information about the rise in population with respect to rise in dairy industry. The dairy
industry has being studied in detail, so that can be converted into information which can be used
by mother dairy for strategizing its marketing advertisement areas.
It has various functional departments such as the Production, Human Resource, Finance,
Marketing, Purchase and Stores, Quality Assurance, Dispatch and Logistics.
This report is descriptive in nature but contain vital data of the capacity of Indian dairy industry
and competitors to mother dairy. This report will help mother dairy to make strategies for their
long term objective.
This‟ll enable the company to take appropriate decision as needed to increase as well as to retain
its customers in the market. The data has been analyzed by presenting it in the form of graphs
and tables and based on it: the interpretations have been made for the same. The results and
findings have also been made for the organization to help management in their decisions. Lastly,
the recommendations have also been made for the organization.
CHAPTER – 1
INTRODUCTION
India has the highest livestock population in the world with 50% of the buffaloes and 20% of the
world‟s cattle population, most of which are milch cows and milch buffaloes. India‟s dairy
industry is considered as one of the most successful development programs in the post-
Independence period.
In the year 2006-07the total milk production in the country was over 94.6 million tones with a
per capita availability of 229 gms per day. The industry had been recording an annual growth of
4% during the period 1993-2005, which is almost 3 times the average growth rate of the dairy
industry in the world. Milk processing in India is around 35%, of which the organized dairy
industry account for 13% of the milk produced, while the rest of the milk is either consumed at
farm level, or sold as fresh, non-pasteurized milk through unorganized channels.
Dairy Cooperatives account for the major share of processed liquid milk marketed in the India.
Milk is processed and marketed by 170 Milk Producers‟ Cooperative Unions, which federate into
15 State Cooperative Milk Marketing Federations. Over the years, several brands have been
created by cooperatives like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan).
Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur).
Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka
and Tamil Nadu are the milk surplus states in India. The manufacturing of milk products is
obviously high in these milk surplus States. Exports of dairy products have been growing at the
rate of 25% per annum in the terms of quantity terms and 28% in terms of value since 2001.
Significant investment opportunities exist for the manufacturing of value-added milk products
like milk powder, packaged milk, butter, ghee, cheese and ready-to-drink milk products.
India has emerged as the largest milk producing country in the world with present level of annual
milk production estimated as 94.5 million tonnes. We expect a production level of 135 million
tonnes by the year 2015. India has a large livestock population base constituting 278 million
livestock including 180.5 million cattle, 82.8 million buffaloes, 4 million sheep and 9.2 million
goats. The livestock population is projected to increase to 322 million by the year 2015. The
large livestock population is raised primarily on crop residues and grazing in the common
property including basement. The forest area, which was a major source of grazing, is no longer
available to livestock breeders‟ especially landless people. As a consequence, the available feed
resources fall short of the nutritional requirement. The shortfall is estimated as 59.9 million tones
for the green fodder and 19.9 million tones for dry fodder. This shortfall is likely to increase by
2015 to 63.5 million tons of green fodder and 23.56 million tons of dry fodder.
The landless people are, therefore, likely to face severe shortage of resources to raise cattle and
other species of livestock. There is a real danger that in the absence of resources to maintain their
stock, these under-privilege rural people may give up livestock farming. This could be a serious
setback to lakhs of rural families who derive income as well as employment opportunities from
livestock sector.
India prepares to tackle the international market following Japan, where milk consumption today,
has more than trebled to 70 kg per capita from a mere 20 kg in the 'sixties - the consumption of
dairy products in other Asian 'tiger' nations is also growing. As a consequence - creating
excellent export opportunities for India, as these nations are deficient in milk by at least 3 million
tons per year. India, with some 27 per cent of Asia's population, accounts for more than half of
the milk output with enough growth potential to explore foreign markets. In anticipation of the
export opportunities and in view of the post GATT scenario, India is gearing up to tackle the
demands of the international market.
Indian companies are preparing themselves to meet international standards and other non-tariff
barriers. Planners are taking measures to meet the sanitary and phyto-sanitary specifications -
prescribed by Office International des Epizooties (OIE) under the auspices of the World Trade
Organization (WTO) -, which range from the quality assurance of processed dairy products to
the health status of livestock.
The organized cheese market including its variants like processed cheese, mozzarella, cheese
spreads, flavored and spiced cheese, is valued at around Rs 4.5 billion. Processed cheese at 60%
of the overall market is Rs 2.7 billion. The next most popular variant is cheese spread claiming a
share of around 30% of the total processed cheese market. The market is primarily an urban
phenomenon and is known to be growing at around 15%. The market for cheese cubes, slices and
tins is growing. The flavored cheese segment has been constantly declining.
Gujarat Cooperative Milk Marketing Federation (GCMF) with the Amul brand continues to be
the main operator in the branded cheese market in India. It pioneered the market for processed,
branded cheese. What GCMF did was to develop the technology to make cheese from buffalo
milk. World over it is made from cow milk.
Britannia Industries joined the fray in the cheese market in mid-1990s through an arrangement
with Dynamix Dairy Industries (DDI). It was set up in 1995 by a consortium of five companies -
Conwood, Indo Saigon, Hiranandani, ETA and Metro. DDI has capacity to process 500,000 litres
of milk per day with an estimated investment of Rs 1500 mn. The plant designed by Valio of
Finland is run on technology tie-up with Schreiber Foods of the US. Schreiber is the largest
supplier of processed cheese to fast food chains in the US with expertise in sliced cheese.
10
Britannia's cheese is sold in tins in the form of cubes, and in individually wrapped slices in packs
of fives and tens. The slices are being promoted more aggressively worldwide, and these account
for a bulk of cheese consumption. These are gaining acceptance in India as well. Amul followed
Britannia in launching slices. Its cheese spread in the form of paste has been well received in the
market.
Britannia has been concentrating on metros and large cities. The network covers some 60,000
dairy outlets equipped with cold cabinets, refrigerators and insulated boxes. Amul covers some
500,000 retail outlets.
French cheese major, Fromageries Bel, a 10-bn French franc outfit, has entered the Indian
market with La Vache Kirit or what is worldwide known as The Laughing Cow. Its target market
to start with were the two metros of Delhi and Mumbai with distribution entrusted to Delhi-based
Rai & Sons, distributors for premium food brands, Ferraro Rocher and Ricola. The Bel product
will be produced at Bel's facility in Poland exclusively for the Indian market. La Vache Kirit is a
guaranteed vegetarian product. Fromageries Bel is expected to widen its product portfolio by
launching laughing Kirit (creamy cheese in cube form) and Babybel (semi-hard with a wax
coating appropriate for sandwiches).
Laughing Cow was expected to be followed by an Austrian cheese brand, Happy Cow (owned by
Woerle). Woerle has entered into a licensing arrangement with Veekay Foods & Beverages in
Mumbai. Nestle and Kraft have been planning to make foray in the Indian market.
Foreign brands in India include: Probolene, Colby, Mozzarella and Parmessan from Italy,
Cheddar from Dutch, Gryueve. The new entrants will have to compete with well-established
players such as Amul, Britannia's Milkman and Dabur‟s Le Bon, enjoying substantial market
shares in the overall Indian cheese market. The US-based Philip Morris, which brought in its
Kraft cheese brand earlier, has gained a significant presence in the market. The rest of the market
is spread among Verka, Nandini, Vijaya and Vadilal.
Dabur had forayed into the dairy products market through its joint venture company, Dabon
International, a 50:50 joint venture between Dabur India and French dairy products major,
Bongrain. The company claimed a product range of 20 different varieties of cheese under LeBon
brand. Dabon has a manufacturing facility at Noida with an installed capacity of 12,000 tonnes
per annum. Incidentally, the government had, in a move in late April 2001, barred Dabon from
marketing flavoured milk and processed cheese in the country.
11
Dabur was to launch speciality cheese like blue cheese and hard cheese. It had plans to
developing cold chains at the distributor and retail levels in the state capitals and major towns in
order to increase penetration levels.
The demand for cheese is projected to grow from about Rs. 4.50 bn in 2003-04 to Rs. 6.00 bn in
2006-07 and to over Rs 11.00 bn by the terminal year of the projection period, 2014-15. Cheese
is becoming a popular item in the menu of all relatively affluent families. Slowly but surely, it
will penetrate into the rural markets.
Lead Players
The lead players in processed milk products in the market are as follows:
Amul, Britannia, and others include Vijaya, Verka and Vadilal. In the category of cheese Amul,
Britannia Dabur (Le Bon) are the leading players including others like Verka, Nandini, Vijaya
and Vadilal
Dairy Whiteners
About 15% of the total milk output in India is estimated to be processed in the organized dairy.
The industry has maintained a high growth profile, especially in the wake of the Operation
Flood, colloquially also termed as White Revolution, initiated in early 1980s. Today, India
produces over 85 mn tonnes of milk annually. The total milk economy is estimated at Rs 1300
billion in terms of value.
The market for dairy whiteners (commercially know as beverage milk powders and condensed
milk) and creamers is around Rs 3,000 mn. Apart from MNCs like Nestle and companies like
Britannia, the Indian enterprises have also made perceptible progress. Names like Amul, Sapan,
Vijaya, Mohan, Parag and several others have been seen in the marketplace with their whiteners.
These are available mostly in pouches, tetrapacks, and in the near future, may be in miniportion
cups.
Aseptically packed creamer in miniportions is widely used in the West, but has yet to enter the
Indian market in any substantial way. Amul did make a beginning with its whitener pouches and
has emerged as a leader with a market share of 45% followed by Nestle‟s 23%. Aseptically
packed creamer involves techniques to impart a longer shelf life to the product. It is packed in
small cups ready to be poured into a cup of tea or coffee. Creamer is fresh milk with increased
fat content (upto 12%) and is aseptically packed after undergoing Ultra Heat Treatment (UHT) at
12
1400 C. Its introduction will affect the existing whitener market as a natural milk product with a
longer shelf life.
Britannia forayed into the dairy business as a diversification move in 1997. Its first offering,
Milkman Butter, just managed a 5% share. The dairy business claims a 10% share in Britannia's
topline. The company had drawn up plans to atleast capture 5% of the overall fresh milk market
estimated by Britannia at Rs 420 bn. Extending the product portfolio beyond cheese, dairy
whitener and butter, Britannia entered the fresh milk segment in 2001. In the dairy whitener, the
company has managed to capture a significant market share.
Nestle India with its Everyday dairy whitener has established its brand well. It has also entered
into the market with its Nestle Pure Milk and, of course, a product in its niche area, Nescafe
Frappe. Having earlier launched UHT milk, Nestle is concentrating on expanding its reach. Its
plans covered Rs 800 mn investment in its Moga (Punjab) facility. New product segments like
butter, yoghurt and flavoured milk were also on the cards.
While Sapan characterises it as Dairy Special (instant milk mix for tea and coffee), Vijaya is the
only UHT processed milk homogenised brand sold in the market in 200 ml and one litre
tetrapack. All the rest, Amulya, Meadow, Mohan, Parag and Shweta dairy whiteners are in the
form of powders. Mohan also markets a non-dairy whitener alongside its dairy type product.
Since India is a major consumer of tea and coffee, it would be a very large market if only the
price was not a constraint. In addition to domestic consumption, the whiteners/creamers find a
high level of institutional acceptance, especially by railways, hotels and restaurants, airlines,
hospitals and nursing homes and corporate offices. The institutional market can be tapped first,
in particular, the airlines, railways and hotels.
13
CHAPTER – 2
COMPANY PROFILE
14
Mother Dairy Fruit & Vegetable Pvt Ltd is an Indian company that manufactures markets and
sells milk, milk products and other edible products. Its milk products include cultured
products, ice cream, paneer and ghee under the Mother Dairy brand. The company also
sells edible oils, fresh fruits and vegetables, frozen vegetables, and processed food like fruit
juices, jams, pickles etc. Mother Dairy was founded in 1974, as a wholly owned subsidiary of
the National Dairy Development Board (NDDB).
15
Type private
Mother Dairy
Brands
Safal
Dhara
Dailycious
Number of 3500
employees
Website www.motherdairy.com
16
2.1. HISTORY
Mother Dairy was commissioned in 1974 as a wholly owned subsidiary of the National Dairy
Development Board {NDDB}. It was an initiative under Operation Flood, a dairy development
program aimed at making India a milk sufficient nation. Mother Dairy sources a significant part
of its requirement of liquid milk from dairy cooperatives and village level farmer centric
organizations.
The company originally focused on Delhi and other parts of the National Capital Region (NCR).
It later expanded to other regions in India.
Safal is the fruit and vegetable arm of Mother Dairy. It operates a large number of fruit and
vegetable stores in the NCR, and also has a significant presence in Bangalore. Safal also has a
plant in Bangalore, which produces around 23000 MT of aseptic fruit pulp and concentrate
annually. It supplies to food processing companies such as Coca-Cola, Pepsi, Unilever, Nestle
etc. Safal also has a presence across 40 countries viz., USA, Europe, Russia, Middle East, Asia
and Africa and exports Fresh Fruits & Vegetables (Grapes, Banana, Gherkin, Onion, etc.), Fruit
Pulp & Concentrate, Frozen Fruits & Vegetables, etc.
Mother Dairy is also present into edible oils segment under the brand name Dhara, which was
launched under the Operation Golden Flow program of NDDB.
17
Mother Dairy was commissioned in 1974 as a wholly owned subsidiary of the National Dairy
Development Board (NDDB). It was an initiative under Operation Flood, the world's biggest
dairy development program launched to make India a milk sufficient nation. Over the years,
Mother Dairy has contributed significantly in achieving this objective through a series of
innovations and programs. Today, Mother Dairy manufactures, markets & sells milk and milk
products including cultured products, ice creams, paneer and ghee under the Mother Dairy brand.
The Company also has a diversified portfolio with products in edible oils, fruits & vegetables,
frozen vegetables, processed food like fruit juices, jams, pickles etc to meet the daily
requirements of every household.
The Company over the last many years has created a market leadership position for itself in
branded milk segment in Delhi & NCR through a robust network of its booth and retail channels.
It has expanded its reach to other regions in North, South, East and West with its offering of
Milk and Milk products pegging it among the few companies to own such a vast channel of
distribution in India.
Brand Mother Dairy sources a significant part of its requirement of liquid milk from dairy
cooperatives and village level farmer centric organizations. The Company is committed to
uphold institutional structures that empower milk producers and farmers through processes that
are equitable. A significant portion of its income is ploughed back into the value chain to support
and maintain the system.
Mother Dairy is an ISO 9001:2008 (QMS), ISO 22000:2005 (FSMS) and ISO 14001:2004
(EMS) certified organization. Quality of milk is of paramount importance for the company and
18
hence it has invested extensively in installing hi tech automated machines to ensure high product
quality/reliability and safety.
Safal, the fruit & vegetable arm of Mother Dairy was the first Company to organize the F & V
business in India. Today Safal is the market leader in organized fruit & vegetable retail business
in Delhi NCR and operates the largest number of F&V Stores in Delhi NCR & in Bangalore.
Safal was the first brand in India to launch frozen vegetable in mid 90s. Over the years, the brand
has gained significant customer support and has become a household brand with market
leadership and presence across the country.
Safal also has a state of the art plant in Bangalore which produces and sells around 23000 MT of
aseptic fruit pulp & concentrate annually and supplies to noteworthy companies in food
processing space like Coca Cola, Pepsi, Unilever, Nestle etc. Safal also has a prominent presence
across 40 countries viz., USA, Europe, Russia, Middle East, Asia and Africa and exports Fresh
Fruits & Vegetables (Grapes, Banana, Gherkin, Onion, etc.), Fruit Pulp & Concentrate, Frozen
Fruits & Vegetables, etc.
The edible oils business under the brand name Dhara was launched under the „Operation Golden
Flow‟ program of NDDB as a market intervention program to address a larger cause of the
Indian farmers & consumers. Trust, Purity and Taste are the hallmarks of Dhara cooking oil.
It has been a constant endeavor at Mother Dairy to stay connected with its stakeholders. It is
committed to bring happiness to every individual with its range offering pure, hygienic and
adulteration-free high-quality products which has been the strength, differentiator and heritage of
the brand over years.
In the effort to instill and spread happiness, the organisation creates a workplace that is fulfilling
and enriching for them. It constantly listens to its employees and evolves its people practices. As
a result, Mother Dairy has been recognized as a Great Place to Work by Great Place to Work
Institute in their annual survey. The HR practices around the Concessionaire Management have
been cited as Examples of Excellent practices across all the Organizations.
19
CHAPTER – 3
LITERATURE REVIEW
20
Customer Satisfaction Last few decades have witnessed dramatic changes in market environment
characterized by unprecedented levels of diversity, knowledge richness and turbulence. The
turbulence in environment has created by macro environmental changes, namely, technological
advances and globalization. The technological changes have made the traditional economic
concept of scale, scope and structure irrelevant in the new economy removing the time and place
barriers of doing business. Technological advances combined with forces of globalization have
resulted in the transformation of the economy, industries, markets and customers, resulting in a
connected knowledge economy, borderless global economy, globalizing, converging and
consolidating 54 industries, fragmenting and frictionless markets and active, connected,
informed and demanding customers. Organizations‟ attempts to adapt to these changing
environmental realities have effected changes in the focus, emphasis and scope of marketing.
Today‟s customers demand choice and convenience. Customers mix and match according to
their needs for product or service. Customer “satisfaction presents a versatile cross-channel
metric to gauge the service provider‟s strengths and weaknesses from the customer‟s point of
view. The concept of customer satisfaction occupies a central position in marketing thought and
practice.
Satisfaction is a major outcome of marketing activity and service to link processes culminating in
purchase and consumption with post purchase phenomenon such as attitudinal change, repeat
purchase and brand loyalty. It is a feeling, which a customer gets from a process of evaluating
what was received against that expected, the purchase decision itself and the fulfilment of needs
and want. The key to customer satisfaction lies in meeting these expectations.
Expectations are created in the customer mind from a variety of causes and reasons like past-
experience, promotional claims, word of mouth and third party information. Kotler also noted
that satisfaction is a function of perceived performance and expectations that identifies feelings
of a person resulting from comparing a products perceived performance in relation to his/her
expectations. Customer satisfaction is multi-dimensional in nature and lies with multiple
experiences with the service provider.
Customer satisfaction is a business term, which is used to capture the idea of measuring how,
satisfied an enterprise customers are with the organizations efforts. During the past decades,
customer satisfaction has emerged as a strategic imperative for most firms. In the 1980‟s,
21
achieving a higher satisfaction became a goal in itself. During the 1990‟s, there was a
widespread realization that satisfaction is a strategic goal for all organization involved in the
delivery of customer service. Satisfied customers usually return and buy more, they tell people
about their experiences, and they may well pay a premium for the privilege of using service
product of the organization.
Since satisfaction drives behaviour, a more thorough understanding of what drives customer
satisfaction will give service providers the insights they need to influence customer behaviour in
the short-term and long-term. The centrality of the concept is reflected by its inclusion in the
marketing concept that high customer satisfaction ratings are widely believed to be the best
indicator of a company‟s future profit. Because, satisfied customers are more willing to pay for
the benefits they receive and are more likely to be tolerant of increases in price. This implies
high margins and customer loyalty. Otherwise, it will lead to customer turn over, high
replacement costs and high customer acquisition costs. This is a means to strategic ends such as
customer retention that directly affect profits.
Customer satisfaction is generally described as a judgment that a customer develops after the act
of purchase of a product/service. The determinant to customer satisfaction includes product
quality, product packaging, keeping delivery commitments, price and responsiveness and ability
to resolve complaints and overall communication, accessibility and attitude. Most firms realize
that the more competitive the market, the more important the level of customer satisfaction. In
this context it is very important to provide-customers with outstanding value, i.e. quality, service
and price to achieve sustained customer satisfaction and loyalty.
Improving quality and customer satisfaction reduces costs associated with defective services
such as warranty costs, field service, and reworking and handling or managing complaints.
Word-of-mouth from satisfied customers lowers the cost of attracting new customers and
enhances the firm‟s overall reputation, while that of dissatisfied customers are naturally has the
opposite effect.
The constantly changing environment forces enterprises to identify new opportunity for claiming
competitive advantages and to adapt these intense and environmental factors become more
hostile; the concern for service quality grows. Quality has been considered to be one of the
22
management‟s topmost competitive priorities and a prerequisite for sustenance and growth of
firms. The quest for quality improvement has become a highly desired objective in today‟s
intense competitive market.
Though service quality and customer satisfaction is conceptually different, but there exists a high
relationship between them. The perceived service quality is an antecedent to satisfaction and
leads to customer satisfaction. Firms that are clearly interested in providing outstanding customer
value would be expected to have culture that reinforces high quality. A high quality service can
level the customer‟s perception and exception towards an offering. Quality has to satisfy, and
preferably exceed, the needs and expectations of the customers. That is why; service quality is
widely seen as a key antecedent to successful customer relationships. A service offer, which is
inferior or indistinct, may lead to greater problems in attracting and retaining satisfied customers.
In recent years, customer satisfaction has grown much more important to business firms. of all
types because of increased customer requirements, new technological possibilities and the
ongoing globalization mean that a focus on quality improvements are necessary for all
organizations, who want to strengthen their competitiveness on the world market. Keeping this
fact in the mind, all firms are paying greater attention to service quality and customer satisfaction
in this increased competitive and deregulated market.
Customer buying behaviour is important to be studied by the cellular mobile service providers
because customer satisfaction determines the market share for the organization. Oliver (1997)
has given a famous comment stating, "Every one knows what satisfaction is, until asked to give a
definition. Then, it seems, nobody knows."
It is judgment that a product or service feature, or the product or service itself, provides a
pleasurable level of consumption related fulfilment." Furse et al (1994) refers, "Satisfaction as
the measurement of one or more variety of customer opinions including ratings of service
quality, „future behavioural intentions, customer‟s self assessment of outcome and satisfaction?
23
Boulding et al (1993) 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 of a specific purchase occasion
according to transaction-specific perspective. Cumulative customer satisfaction is an overall
evaluation based on the total purchase and consumption experience with goods or service over
tome. Cumulative satisfaction is a more fundamental indicator of the firm‟s past, current and
future performance and its cumulative satisfaction that motivates a firm‟s investment in customer
satisfaction.
Kotler and Armstrong (1993) stated that 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.
Fe and Ikova (2004) added that the perception of the word "satisfaction" influences the activities,
which a customer conduct to achieve it. Researchers have also identified customer satisfaction as
a multi dimensional in nature and viewed overall satisfaction as a function of satisfaction with
multiple experiences with the service provider. Giese & Cote (2000) studied various literatures
and indicated that customer satisfaction is a response (emotional or cognitive), the response
pertains to a particular focus (expectations, product, consumption experience, etc) and the
response occurs at a particular time (after consumption, after choice, based on accumulated
experience, etc).
24
Halstead, Hartman and Shmidt (1994) found that customer satisfaction is a transaction-specific
affective response resulting from the customer‟s comparison of product performance to some
pre-purchase standard.
Webbrook and Oliver (1991) described customer satisfaction is a post choice evaluative
judgment concerning a specific purchase selection.
Oliver (1987) examined whether satisfaction was an emotion and concluded that satisfaction is a
summary attribute phenomenon coexisting with other consumption emotions.
Tse and Wilton (1998) stated customer satisfaction as the customer‟s response to the evaluation
of the perceived discrepancy between prior expectations (or some norm of performance) and the
actual performance of the product as perceived after its consumption.
Mano and Oliver (1993) examined 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 judgment (Hunt, 1977) with the
evaluative aspect of that judgment varying along the hedonic continuum (Oliver 1989;
Westbrook and Oliver 1991)
Kumar and Oliver (1997) indicated that satisfaction was associated with customers expectations
being met, feeling they got "fair" value and feeling contented.
Cote, Foxman and Bob (1989) suggest that satisfaction is determined at the time the evaluation
occurs. In some cases, satisfaction assessment may be a naturally occurring, internal response
such as after consumption, or prior to repurchase. In some case of the assessment of satisfaction
may be externally driven.
25
Kotler has explained the concept of value and satisfaction as stated by Gita Parimal (20O6).
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. Satisfaction, then, is the extent to
which actual value realized by the purchase or acquisition of the product matches the pre-
purchase assessment of value. If actual value is equal to or greater than perceived value,
satisfaction will result, if not, then dissatisfaction will result.
The review of this literature indicates definition of customer satisfaction. Customer satisfaction
is very important in the light of the fact that customers are the primary source of most firms‟
revenue. It is understood from the above literatures that customer satisfaction is determined by a
cognitive process of comparing what customers receive against what they pay for getting the
service.
Terblanche & Boshoff (2001) assessed the influence of certain factors on customer‟s level of
satisfaction in their study. It has been found that service quality, product quality and product
varieties are the three dimensions that influence customer satisfaction.
Fornell et al (1996) has introduced the American Customer Satisfaction Index (ACSI), a new
type of customer-based measurement system for evaluating the performance of firms, industries,
economic sectors and national economies. ACSI measures the quality of the goods and services
as experienced by the customers. They found that customer satisfaction is determined by
customization. Customer expectations and quality drives customer satisfaction that value or
price.
Turel and Serenko (2004) studied validation of American Customer Satisfaction Model in mobile
telecommunication sector and found that there is a positive association between perceived
26
customer expectations, perceived quality, value and satisfaction and a negative link between
satisfaction and customer complaints.
Churchill, Jr. & Suprenant (1982) investigated whether it was necessary to include
disconfirmation as van intervening variable affecting satisfaction as was commonly argued, or
whether the effect of disconfirmation was adequately captured by expectation and perceived
performance. Further, they modelled the process for two types of products using experimental
procedures in which three levels of expectations and three levels of performance were
manipulated for each product in a factorial design. Each subject‟s perceived expectations,
performance evaluations, disconfirmation, and satisfaction were subsequently measured by using
multiple measures for each construct. The results suggested that the effects were different for the
two products. For the non-durable good, the relationships were as typically hypothesized. The
results for the durable good were different in important respects. First, neither the
disconfirmation experience nor subjects initial expectations affected subjects‟ satisfaction with it.
Further, their satisfaction was determined solely by the performance of the durable good.
Expectations did combine with performance to affect disconfirmation, though the magnitude of
the disconfirmation experience did not translate into an impact on satisfaction. Finally, the direct
performance satisfaction link accounts for most of the variation in satisfaction.
Ganesh et al (2000) note that investigations of overall satisfaction provide useful insights into the
various customer groups, further exploration, of satisfaction with service dimensions provide a
more detailed look into the factors that drive customer satisfaction.
Ching-chow Yang (2003) stated that customer satisfaction measurement highlights the strength
and the area of improvement in the quality of product. Continuous improvement is considered
one of the important quality activities for a firm to pursue the best quality for its products.
Through the continuous improvement actions, the enterprise can increase customer satisfaction
and raise profits.
27
Woodside et al (1989) found from the research study that customer judgment of service quality is
positively associated with overall satisfaction with the service encounter. The overall satisfaction
varies with the service quality and customer satisfaction. Overall customer satisfaction with the
service encounter-is associated with behavioural intention to return to the same service provider.
Now, quality is an important factor in determining the customer satisfaction. Service quality and
customer satisfaction are important concept as a means of creating competitive advantages and
customer loyalty. According to Berry et al (1997), service quality has become a significant
differentiator and the most powerful competitive weapon, which all the service organizations
want to possess.
Jain & Hundal (2OO6) revealed in their study that the choice of service provider was affected by
facilitating factor followed by coverage, quality of services, and easy availability of connection
and bill payment. Lt was stated that neighbours choice had affected the respondent‟s choice to a
great extent.
Zeithaml, Berry and Parasuraman (1996) study shows that companies offering superior service
achieve higher than normal market Share growth. Zeithmal et al (1996) developed a conceptual
framework of the behavioural and financial consequences of service quality. Superior (inferior)
service quality is related to favourable (unfavourable) behaviour intentions.
McCune (1989) suggested that due to increased public desire for improved services with the
dramatic growth in the service industry, companies has led to assess quality of service for an
increased customer satisfaction.
Service quality and customer satisfaction are widely recognized as key influences in the
formation of customers purchase intentions in service environment. From the study of Taylor and
Baker (1994), it appears that customer decision-making which includes the interaction of
satisfaction and service quality provided a better understanding of customer purchase intentions.
Rust et al (1999) have developed the concept of the Return on Service Quality model that looks
at investments in service as a chain of effects with the following characteristics:
28
• Increased customer satisfaction at the process or attribute level will lead to increased
overall customer satisfaction.
Zeithaml and Berry (1996) has made attempts to understand the characteristics of services and
what providers should possess in order to project a high quality service articulated by their
customers. They made a conclusion that customers‟ provided service quality is a different
concept from their satisfaction level and service quality can be known by measuring the gaps
between customers‟ expectations and their performance.
Cronin and Taylor (1992), however, argue that the conceptualization of service quality as a gap
between expectations and performance is inadequate. According to them, the concept of
satisfaction defined as a gap between expectations and performance of disconfirmation of
expectations.
Gronroos (1984) created a service quality model to illustrate how customers perceive the quality
of a given service. It divides customer‟s perception of any particular service into two
dimensions:
29
Goode et al (2005) found that customer satisfaction for mobile phones determined by experience
with a mobile phone‟s product quality, the level of call charges, the level of service charges and
satisfaction with the service provider. One could argue in the case of mobile phones that the
customer satisfaction is likely to be dependent on attribute importance related to physical product
as well as on attribute related to the service offered by the service provider.
Agus (2004) found from a research study that every organization should focus in meeting the
unlimited expectations of its customers. Quality can make customer satisfaction the number one
priority, where an emphasis should be placed on meeting or exceeding the customer expectation
in every transaction. Therefore, the organization must know and understand the customer‟s needs
to ensure that the customer‟s quality is met.
Cronin Jr, Brady and Hult (20O0) studied the relationships between quality, value, satisfaction
and behavioural intentions. They suggested that the customer decisionmaking process for service
product is modeled as a complex system that incorporates both direct and indirect effects on
behavioural intentions. Tam (2004) suggested that increasing customer‟s perceptions of service
quality could result in high customer satisfaction and perceived value.
Bolton (1998) indicates that customer satisfaction is positively related to the duration of the
relationship. The strength of the relationship between duration times and satisfaction levels
depends on the length of customer‟s prior experience with the organization.
30
Customers who have a many months‟ experience with the organization weigh prior cumulative
satisfaction more heavily. The duration of the service provider-customer relationship depends on
whether customers experienced service transactions or failures.
Satisfying customers is a challenge for any service company. Taylor (2002) stated that company
should stay focus on delivering services quickly and consistently so that it reaches to customer
fast.
The paper of Bou-Llusar et al (2001) provides empirical evidence on the relationship between
firm perceived quality and overall customer satisfaction on purchase intentions. It can be stated
that firm perceived quality exerts an important influence on purchase intentions. It has also seen
that customer satisfaction acts, as a mediating variable that moderates perceived quality and
purchase intention.
Anderson et al. (1994) states that when quality and expectations increase, there is a positive
effect on customer satisfaction in the long run, but increased expectations may have a negative
impact in the short run. Expectations have a positive effect on customer satisfaction in the long
run because they capture the accumulated memory of the market concerning all past quality
information and experience.
Any organization must be able to deliver high levels of all the three critical factors such as cost
of service, outcome of service and perceived quality found from the study of Furse et al (1994).
The best providers Q Y would be those who can able to deliver and manage information about
the critical factors.
Wisniewski (2001) found an overall conclusion from the study that SERVQUAL approach is
conceptually attractive and operationally useful.
It offers a cost-effective way of ensuring that services remains customer focused and helps to
identify the gap between performance and customer expectations about a service that will result
in improvement.
31
Bruce Cooli et al (2007) has investigated the relationship between customer satisfaction and lo
alt in various contexts. Researchers have co found on the intuitive relationship between customer
satisfaction and business outcomes in two key ways:
• Changes in satisfaction are positively and non-linearly related to the share of wallet a
customer allocates to a particular service provider over time.
P. Chandiran (2005) states that company‟s positioning and differentiation strategy changes as the
product, market and competitors change over time. Mobile telephony has a life cycle asserts four
things:
Ennew and Binks (1996) state in the study that service quality is seen as a key antecedent to
successful customer relationships. Arguably, this is particularly so in the service sector where
quality can be difficult to imitate and as such can potentially provide the basis for a sustainable
competitive edge. Offering a superior service, which the competition cannot match, provides
customers with a reason for selecting and remaining with a particular provider. Anderson and
Sullivan (1993) have investigated the antecedents and consequences of customer/customer
satisfaction by analyzing a representative survey of 22,300 customers of a variety of products
and service s in Sweden in 189-90. This paper has the following important implications.
• Firms, which consistently provide high-quality products, should have a more satisfied
customer base and one that is more likely to be retained.
32
Achieving the full profit potential of each customer relationship is Vital for the organization.
Grant and Schlesinger (1995) stated that profits from customer relationships are the lifeblood of
all businesses. Profits can be increased by acquiring new customers- to increase the number of
people who use a product or service and enhance the profitability of existing customers- to
motivate people to engage in behaviours that generate higher returns. The company must
examine customer behaviours such as share of use, costs of service, price paid and referrals for
studying full potential of target customers.
33
CHAPTER – 4
RESEARCH
METHODOLOGY
34
35
1. Research work was carried out in Delhi only the finding may not be applicable to the
other parts of the country because of social and cultural differences.
2. The sample was collected using connivance-sampling techniques. As such result may not
give an exact representation of the population.
3. Shortage of time is also reason for incomprehensiveness.
4. The views of the people are biased therefore it doesn‟t reflect true picture.
The objective of the study is to find the customer satisfaction on Mother Dairy considering the
following factors:
Price
Services
Patronage
Deliveries
Outlet locations
Products
Quality
36
CHAPTER – 5
ANALYSIS
&
INTERPRETATION
OF
DATA
37
Gender
40% Male
Female
60%
INTERPRETATION - From the above table and figure, we can easily analyze that majority
of the females are respondents of the survey as compared to males, we have 60% of males and
40% percentage of females have participated in this survey.
38
0-20 62
21-40 92
41-60 30
61 & above 16
Total 200
Age Group
8%
0-20
15% 31%
21-40
41-60
61 &
above
46%
39
Purchase
25% Yes
No
75%
40
Consumption Duration
30% 29%
11%
20%
10%
0-1 year 1-2 years 2-3 years 3-4 years More than 4 years
41
Services
40% Yes
No
60%
INTERPRETATON – 150 out of 200 respondents are taken for the studies for further
survey. 40% of the total respondents liked the services of Mother Dairy whereas rests 60% of the
respondents don‟t like the services of Mother Dairy.
42
11%
Milk
39%
21% Curd
Cheese
Other
29%
43
Q7. What factors did you influence when you purchased the Mother
Dairy’s product?
What factors did you influence when you purchased No. of respondents
the Mother Dairy’s product?
Brand 35
Prices 95
Others 20
Total 150
Influencing Factors
12%
24%
64%
44
Regularly 62
Twice in a week 48
Frequently or once in a month 30
Occasionally 10
Total 150
Frequency
6%
Regularly
20%
42% Twice in a week
Occasionally
32%
45
Q9. What do you feel about mother dairy after purchasing product?
What do you feel about mother dairy after purchasing No. of respondents
product?
Detect any problem 30
Comfortable with the services 10
Reported retailer 62
Others (None) 48
Total 150
Feedback
20%
32%
7%
41%
INTERPRETATION – from above figures, it is analyzed that the 41% of the respondents,
majority reported retailers about the mother dairy‟s product. 32% of the respondents did nothing
after purchasing the product. 20% of the respondents detected problems in the purchased
product. 7% of the respondents are comfortable with the products.
46
Ratings
10%
Average
17% Good
53% Moderate
20% Excellent
47
CHAPTER – 6
FINDINGS
AND
RECOMMENDATIONS
48
FINDINGS
Females take participation in this survey with majority which is 60% of the respondents.
92 of the respondents in the age of 21-40 with percentage 46% which is the highest
percentage among other age distribution.
Most of the respondents are consuming the products more than 4 years.
75% of the total respondents purchase the mother dairy‟s product which is 150 out of 200
respondents.
40% of the total respondent like the services of the mother dairy‟s products.
39% of the total respondents which is majority are purchasing milk from Mother Dairy.
Most of the respondents which is 64% purchase the mother dairy‟s product because of
prices.
Majority of the respondents which is 42% purchase the products of mother dairy
regularly.
41% of the respondents, majority reported retailers about the mother dairy‟s product.
53% of the respondents which is majority rated excellent to the products of mother dairy.
49
RECOMMENDATIONS
50
CHAPTER – 7
CONCLUSION
51
India has the highest livestock population in the world with 50% of the buffaloes and 20% of the
world‟s cattle population, most of which are milch cows and milch buffaloes. India‟s dairy
industry is considered as one of the most successful development programs in the post-
Independence period.
The organized cheese market including its variants like processed cheese, mozzarella, cheese
spreads, flavored and spiced cheese, is valued at around Rs 4.5 billion. Processed cheese at 60%
of the overall market is Rs 2.7 billion. The next most popular variant is cheese spread claiming a
share of around 30% of the total processed cheese market. The market is primarily an urban
phenomenon and is known to be growing at around 15%. The market for cheese cubes, slices and
tins is growing. The flavored cheese segment has been constantly declining.
Britannia's cheese is sold in tins in the form of cubes, and in individually wrapped slices in packs
of fives and tens. The slices are being promoted more aggressively worldwide, and these account
for a bulk of cheese consumption. These are gaining acceptance in India as well. Amul followed
Britannia in launching slices. Its cheese spread in the form of paste has been well received in the
market.
Mother Dairy Fruit & Vegetable Pvt Ltd is an Indian company that manufactures markets and
sells milk, milk products and other edible products. Its milk products include cultured
products, ice cream, paneer and ghee under the Mother Dairy brand. The company also
sells edible oils, fresh fruits and vegetables, frozen vegetables, and processed food like fruit
juices, jams, pickles etc. Mother Dairy was founded in 1974, as a wholly owned subsidiary of
the National Dairy Development Board (NDDB).
It is well known fact that the most important step in marketing research process is to define the
problem. Choose for investigation because a problem well defined is half solved. That was the
reason that at most care was taken while defining various parameters of the problem. After
giving through brain storming session, objectives were selected and the set on the base of these
objectives. A questionnaire was designed major emphasis of which was gathering new ideas or
insight so as to determine and bind out solution to the problems.
Mother dairy needs to adopt various methods to promote it and create better positioning in the
market to grasp the potential market share which will help the company to grow with efficiency
and effectiveness.
52
ANNEXURES
53
QUESTIONNAIRE
NAME: ______________________________
EMAIL: ______________________________
Male
Female
0-20
21-40
41-60
61 & above
Yes
No
Yes
No
54
Milk
Curd
Cheese
Other
Shopping malls
Retail outlets
Online
Regularly
Twice in a week
Frequently or once in a month
Occasionally
Average
Good
Moderate
Excellent
55
BIBLIOGRAPHY
56
WEBSOURCES
http://allindiadairy.com/Dairy-Industry-In-India.aspx
http://www.dairymax.org/sites/default/files/Dairy-Foods.jpg
https://dingo.care2.com/pictures/causes/3192/3191918.large.jpg
https://en.wikipedia.org/wiki/Mother_Dairy
https://upload.wikimedia.org/wikipedia/commons/b/b7/MD_with_R.jpg
http://www.nddb.org/sites/default/files/field/image/Range%20Shot.jpg
http://www.nddb.org/sites/default/files/field/image/Safal%20Range%20Shot.jpg
http://www.nddb.org/links/inst/mdfvl
https://communitydoor.org.au/quality-assurance/customer-satisfaction-literature-review
57