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Thesis report/ Field work on DDC for BBS/ BBA final Year

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CHAPTER -1
1. INTRODUCTION
1.1 Background
            Entrepreneurship is the dynamic process of creating increment wealth. It is related to coordinate, innovation and performance of the entrepreneur. Entrepreneurship refers to the various activities done for the establishment and operation of an enterprise. It is also known as 'act of risk-taking' 'act of thrill-seeking'.
"Entrepreneurship is the attempt to create value through recognition of business opportunities management of risk-taking appropriate to the opportunity, and through the communicative and management skills to mobilize the finical and material resources necessary to bring a project of fruition."
"Entrepreneurship is gathering and using resources to produce a result, it is allocating resources to opportunities rather than to problems."
            Nepal is an agriculture-based country where 85% of the population is engaged in agriculture. Their life depends upon agriculture only. Now a day many organizations are established to uplift the economic condition of the farmers. They are coming up with modern technique and equipment to promote the sector of animal's husbandry. Similarly, to inspire the farmers involving in animals husbandry DDC was established.
            Biratnagar is an important town of the Morang district having fast growing demand of milk and milk products every year. The production of raw milk is also increasing every year in Morang and near by districts. Round the year raw milks is available.
            Marketing is study of the consumer choice by which the goods are produced to satisfy them and earn profit. So, all these activities of producing and supplying goods to the consumer are known as marketing. Marketing is a business activity in order to create and promote consumer's demand and direct the flow of goods or services from original product to the final consumer wants into appropriate products and services under keen competition and services with the help of distribution such as wholesales and retailers.
Dairy Development Corporation (DDC) was established in 2030 B.S. in Biratnagar with an initial investment of Rs.72, 506.61. It was one of the monopoly corporations in Purbanchal Development Region at the time of establishment.
The corporation consists of administrative building, processing, department, two storage building, power plant section, butter and ghee producing units, milk bars, security house, staff quarter, manager’s house, guest house, garage and canteen. In the rest areas plantation and gardens have been made for proper environmental adaptation. The major products of DDC are milk, curd, butter, ice-cream, Paneer, cream, milk power and cheese. It has holding capacity of milk up to 1 lakh liters. It has daily intake of 20,000 to 30,000 liters.
1.2 Dairy Development Corporation, Biratnagar Scheme.
            DDC has played an important role in developing the socioeconomic condition of the people by providing employment opportunity to about 157 people. In which about 55 people cook after administer and 102 people look after technique.
DDC was established in 1st Shrawn 2026 B.S. with the objective to buy milk from rural farmers to process and produce pasteurized milk and milk products, to sell milk and milk products in the urban areas and to provide technical support to farmers with a view to entranced milk production. DDC was established in Biratnagar Municipality ward no.5 Kanchanbari, Milk procurement network in done from:
a)      Area: Morang, Sunsari, Saptari, Dhankuta, Jhapa, Terathum and Illam districts of eastern development region.
b)      Daily collection of milk:20,000 to 30,000 liters.
c)      No. of milk producing co-operative society:140
d)     No. of chilling centre: 11
e)      No. of milk producers: 12,000.
 
Skimmed milk producers has paid plant foundation store on Bhadra 24,2048 B.S. by Minister of agriculture Miss Shailoja Acharya, DANIDA has provided financial help to this corporation. The installation period has stared from Falgun 2050 to manga 2051. The production capacity is 2000 liters of flud skimmed milk per hour  or 176 kg of skimmed milk powder per hr. it has done its test run in magh 20,2051. the cost of the turnkey project is 12 Crore 77 lakhs. 50 house in this project has been inraugated by late Prime Minister Manmohan Adhakari in Falgun 14,2050.
            In this project there is 1 registration dealer in VAT, in which they saved all the goods which are incurred in VAT. They sale all the goods which are included in VAT except curd. There are 16 dealer among which 6 dealers are not registered in VAT.
1.3 Objective of Study
The study aim at various objective which are mentioned as under,
a)      The prime objective of the study is to observe and industrial or trading sector .
b)      To find out various method by which an industry collects and distributes its products through various intermediaries.
c)      To observe the real working situation and prepare a report of all these observation done there
d)     To know about its communication system.
e)      To know about its advertising system.
f)       To know about its pricing policy.
1.4 Literature survey
            Research must be based on past knowledge. The previous study can’t be ignored because they are the foundation to present study. In other words, research is a continuous process it never ends. The continuity is a continuous process it never ends. The continuity in research is ensured by linking the present study with the past research studies. Review of literature is the chapter where the research reviews the book journal, magazines or any other types of studies which are related to researchers in the field of study. The primary study is to focus on the marketing porters of DDC in Biratnagar. Theoretical aspect of marketing parder of DDC in Biratnagar is explored in this chapter. Marketing has got the tremendous concentration in business promotion and hence most of the consulted books bear come paragraph on this issue.
            Even though of tune limitation, theoretical aspect for the marketing of DDC is explored in this chapter is more detail and descriptive manner. For this chapter some basic academic course books, journal and other related studies have been reviewed.
In simple words, marketing means the performance of any act of purchase and sales of goods or services.
            In tradition concept, marketing is totally based on profit and its main aim is to produce more amount of goods and sale it to the consumer. It also mean promoting sale of goods or services through effective advertisement therefore, traditional concept of marketing done not give satisfactory meaning of marketing.
            Now-a-days, marketing is understood not from the old concept ‘telling and selling’ but it is understood from the concept of satisfying customers need. This means the modern concept does not accept that that marketing is to collect as much profit as can be by selling goods and services through effective advertisement and influencing customers. The modern concept of marketing gives first priority to customer's satisfaction. It accepts profit as the gift of customer's satisfaction.
            The whole activity of providing goods and services to satisfy targeted market in order to active organizational goal is called marketing.

            The definitions of marketing given by some famous writer are as follows:                                              
“Marketing is a social and managerial process by which individual and group obtains what they need and want through creating offering and exchanging products of value with others.”
“Marketing is the process of planning and executing the conception, pricing , promotion and distribution of idea, goods and services to create exchange that satisfies individual and organization objectives.”
“Marketing is a total system of business activities designed to plan price, promote and distribute want satisfying products to target market to achieve organizational objectives.”
“Marketing is the process of discovering and translating customers need and wants into products and service by specification, creating demand for these products and services and then it turn expanding these demands.”
1.4.1 Communication System
            Communication system has and important role in marketing. Communication promotes selling gives information about the product. It also helps to promote the relation-ship between buyer and seller. It also helps in transmitting information, views, news, idea or any other message from one person or group to another person using any medium with the common understanding. The importance of communication system helps to decrease the dissatisfaction of trader and consumer y providing information of the consumer so , to uplift the quality of goods among the consumer telephone, fax, email etc. are used. In this way, DDC alos uses this system to give and collect information from consumer.
1.4.2 Pricing system
            Price setting system is one of the important element of marketing. It is the main source of organization which help to determine the quality of goods. Price means the amount of money paid by consumer for any good or services. Price is what consumer pay for what they get. It is the amount to money that consumer pay for the product. For e.g. if we pay Rs. 15 for a milk which is known as price. Price setting is one of strategic decision in marketing while determine the price the position of different factors like consumer market media member, government rules and regulation are to be kept in mind.
            DDC fixes to price in the context of skimming pricing policy, pr4ofit maximizing price and discounting pricing policy. DDC mainly applies profit maximization policy but when DDC produce new product than it applies discounting pricing policy to sells its product.
1.4.3 Distribution of product:
            Producing goods is an incomplete work of marketing. After producing goods, distribution of goods is done to fulfill the consumer necessities. Therefore, distribution of product in business help to fulfill consumer needs and wants because it is only the means through which goods and services placed into the hands of customer. In this way, the goods produced in a country can be distributed in different part of country.
 There are three ways of distribution the product.
a)      Direct
b)      Indirect
c)      Mix
            DDC applies man method of distribution of goods. It distributes goods to Kathmandu, Biratnagar, Hetuda, Pokhara, Butal and different place of a country.
1.4.4 Advertising
Advertising is a process of providing meaningful of a product.
            In this competitive market, advertising plays a vital role. Advertising provide all the necessary information to the consumer about the quality, feature, price, utility and importance of goods and services through different means of advertisement such as radio, newspaper, magazines, TV etc. its also plays an important role for  promotion of goods. Now- a- days, producer invest a lot of money for attracting consumer to buy their product by means of advertising. In this way DDC also uses different media for advertising their goods. DDC can also increase it sales by advertising its products.                                                                                               
1.4.5 Branding
            Branding is one of the important works for market. Branding is just giving name, term, sign, symbol or design of a produce . Banding of product gives satisfaction to customer beside enchanting image of the company. The different name and symbols if given to a product by which producer distinguish own product  of other producer is known as branding .eg :  Noble  Dairy, Sitaram Dari etc . DDC has given  a symbol of Nepal map and three bottles in the map.
 
1.4.6 Packaging
            Packaging is one of the processes of saving goods from being destroyed. Packaging means putting any product safely in a packet or pot or envelop. This makes the product more attractive, safe and trouble-free. This allows work as effective communication. It also provides information to the consumer about features, quality, using methods, etc. It also plays a great role in maintaining quality of product.
            DDC produce different size and color packets to their product safe. It also put symbol in the packet.
 
1.5 Purpose of the field word
Purpose of the field work is as follows:
-          To complete the BBS level curriculum of university.
-          To develop skill of researcher in the area or research.
-          To study the marketing pattern of DDC project in Biratnagar.
-          To develop the overall academic performance of the researcher.       
1.6 Fieldwork producer
The main purpose of the study is to show the marketing pattern of the DDC Biratnagar. For this purpose the data collection, the researcher has to go the site and collect data by the concerned desk officer, manager, etc and by acquiring various dinds of report bulleting and journals from the organizational.
The study report is base note on secondary information and lights the study of company by researcher during fieldwork. In addition to this reference has been made in library, books related to marketing during preparation of this study.
 
 
Nature of data
The method of collecting the information about the record is done by both primary and secondary sources.
a)      Primary Sources: Primary data are those type of data which are obtained by a study specifically designed to fulfill the data needs of the problem at head and it is originally collected from interview, investigation, visiting to the spot etc.
b)      Secondary sources: secondary data are those type of data which are obtained from any published sources such as magazine, newspaper, reports. They are used when it is not practicable to collect primary data for want of time money are manpower. The data used for this study are secondary in nature but required in formation has been collected through related person of DDC.
c)      Method of Data collection: Researchers has collected data by primary method interview, observation totally by collecting DDC view about various data is procuress and some data were also supplied from the annual records dairy by the managerial level authority.
1.7 Tools and Technique of Analysis
Some of the mathematical and statistical tools have been used to analyze the secondary data.
a) Percentage
            Percentage is made up of two words 'per' and 'cent'. 'per' means in 'cent' means hundred. Thus 1 percent means 1 n every hundred. To compare the two period financial data in terms of increase or decrease percentage, the researcher has used the following relationship.
Increase/ decrease percent= Ending Value - Beginning Value
                                                        Beginning Value
 
 
 b) Graphs of one variable
            When only one variable is to be presented, we take time along the x-axis and the corresponding values of the variable of the y-axis. Now points are plotted with the values of the variable corresponding to the time. Then join these points by straight lines (not by curves). The Fluctuation in the lines shows the variation in the variable.
c) Simple bar diagram
Simple bar diagram is a diagram for only one variable. It is the simplest and frequently used for the comparative. Study of the more values of a single variable. it consists of a set of equidistant rectangles of equal width. The heights (we length) of the rectangles are represented by given values of the variable. The number of rectangles is equal to the number of values of the single variable.                                                                                               
1.8 Limitation of the study
The limitations underlying in conduction this report are as follows:
1.         The information available in published annual report has been assumed to be correct and true.
2.         This study is limited to DDC, Biratnagar branch only.
3.         Due to tune constant, the detail knowledge of more valuable data could not be gained.
4          This study analysis the marketing performance of DDC only and other concepts are not considered
 

CHAPTER-2
2          PRESENTATION AND ANALYSIS OF DATA
2.1       Presentation of Data
DDC produce different items. They are milk, cream, cup cud, curd liters, ice-cream, ghee, cream 40%, cheese, paneer, standardized milk, etc. the corporation has been selling its product to the domestic market. In domestic market it sells its product through direct and indirect marketing channels.
   In this diagrammatic table no.1, the quantity (in liter) sold during the Fiscal year 2070/71 to 2073/74 is shown and in table no. 2 quantity sold in Rs. During the Fiscal Year 2070/71 to 2073/74 is shown.
 
Table No.1
  Total production (in liter) of different diary product in 4 Fiscal Years.      
S.N.
Products
2070/71
2071/72
2072/73
2073/74
1.
pocket Milk
3377627
4600963
6378595
4274379
2.
Cream Curd
507884
814657
256700
996684
3.
Cup milk
350154
405658
68483
3507998
4.
Curd milk
30176
134726
40368
50265
5.
Special Curd
129289
137298
6007
9087
6.
packet Butter
31594
41358
13551
3000
7.
Butter
625
4140
2066
978
8.
Ice-Cream Cup
16664
24272
3178
2316
9.
poly pack Ghee 1kg
81335
147999
48148
90701
10.
Poly pack Ghee 1.5 kg
11446
12632
2185
5275
11.
Cream 40%
181
274
121
173
12.
Cheese
1502
2652
881
2714
13.
paneer
3224
4598
1704
1762
14.
Standardized Milk
1040
8624
926
1010
15.
Milk
13136
16660
3955
7275
 
                     Total
4555922
6856511
6826868
8953618
 
percent increase/decrease
      -
40%
7%
31%
 (Source: Sales Department of DDC)
 
Total Production (in liters)
DDC-TP
 
            In the above diagram, it is shown that the total production of the DDC product 2062/2063 is 4555922. Similarly the total production goes on increasing show their products are becoming popular in the market. show it goes on increasing in 2071/72 i.e. 6856511. Later on its products slightly goes on decreasing due to illegalness or government tax on the production 2072/73 i.e. 6826868. And the lastly in year 2073/74 the DDC product give different advertisement, media and produce different quality of product so that incoming power goes on increasing i. e. 8953618.         
Table No.2
Sales (in Rs.) of different diary product in Fiscal Year.
S.N.
Products
2070/71
2071/72
2072/73
2073/74
1.
Packet Milk
74237962
59419943
140329090
94036338
2.
Cream Milk
20990561
21150926
8674200
35913784
3.
Cup Curd
3501540
4056580
4684830
45079980
4.
Curd liter
3878670
4041780
3211040
1507950
5.
Special Curd
1057160
1305430
210245
318045
6.
Packet Butter
702702
833024
271020
69000
7.
Butter
13750
828000
413200
205380
8.
Ice-Cream Cup
199968
828100
111230
34740
9.
Poly Pack Ghee 1kg
17878088
29002260
20661460
39954220
10.
Poly pack Ghee 1.5kg
2407860
47388469
458850
1160500
11.
Cream 40%
25340
32960
16940
19895
12.
Cheese
363580
647933
2134719
651360
13.
Paneer
677040
755580
370230
370230
14.
Standardized Milk
22880
189728
22220
32340
15.
Milk
343096
121160
189150
290014
 
Total
126300167
170562873
181758496
209643776
 
Percent
Increase/decrease
-
35%
7%
15%
 
Figure 2
DDC-2
Source :- Complied from Table 2
In the above figure DDC shows its earning income during 4 Fiscal Year. Its shows that how much production increases during the Fiscal Year. In the year 2070/71 DDC products increases its inform in it shows that how much percentage increases its rate of income, it increasing total income is Rs.126300167. And Similarly it increases the production and collect the total data of income that how much earning power increases in the year 2071/72 i.e. Rs. 170562873. Similarly, it increases its production collect data that how much benefit earn in year 2072/73 i.e. Rs. 181758496. And lastly in year 2073/74 the DDC product has increasing earning power of the budgeting year of profit/ loss i.e. Rs209643776.
Table No. 3
Total production (in liter) of different dairy product in 4 Fiscal Year.
Fiscal YearTargeted MilkCollected MilkPercentage Collected
2070/719900000971756298.16 %
2071/729400000927203098.64 %
2072/7310000000889495388.95 %
2073/7410250000843022782.25 %
 
Source:- Production department of DDC
 
Figure 3
Graphic Presentation of milk collected out of target milk production 
DDC-3
DDC-4
 
Source: - Complied from Table 3
            In the above diagram, it shows different quality of Milk in different years 2070/71 to 2073/74. In different year 2070/71 to 2073/74 different quality of milk goes on increasing and decreasing on different percentage. In the year 2070/71 to 2073/74 total milk collected in year 2070/71 i.e. 98.16%, in year 2071/72 i. e. 98.64% and later on it goes on decreasing in 2072/73 its percentages is 88.95% and in year 2073/74 its percentages decreases in 82.25%.          
2.2 Analysis of data
            In the above table no. 1 the total production (in liter) in 4 F/Y 2070/71. In the year 2070/71 to 2073/74 is shown, the total production was 4,555,922 and in the year 2071/72 the total production was 6,356,511 which indicts that there have been increasing of 40% in production than in 6,826,868  which shows that there have been increase of 7% in production than in Fiscal Year 2070/71. Again, in the year 2072/73 the total production was 8,553,618 which indicates that there have been increase of 31% in production than in Fiscal Year 2072/73.
From the Figure I, we can see the  increasing trend of in total product on in 4 different years. From 2070/71 to 2073/74 .
            In the above table no 2, the revenue on the amount of goods sold in rupees is shown. During the fiscal year 2070/71 the revenue earned is Rs.81758,496 which shows that there have been increase of 7% than in fiscal year 2071/72. Again in the year 054/065 the revenue earned is Rs.20.96,43776 which shows that there have been increase of 15% than in fiscal year 2072/73.
            From Figure II, we can see the increasing trend in the revenue earned during four different year from 2070/71 to 2073/74.
2.3 Study Result
a)         DDC has trading sector in different districts like Morang, Sunsari, Saptari, Jhapa, Illam, Dhankuta, Terathum and district of Eastern Development Region.
b)         DDC distributes its product through indirect, direct and min methods.
c)         The real working environment in DDC is not sound and healthy.
d)         The corporation uses modern communication system like telephone, fax, Email etc to give and collect information.
e)         The corporation uses different media for advertising like wall painting, radio, TV, pamphlets, magazines, newspaper etc.
f)         For branding the corporation has used a symbol of Nepal is map and 3 bottles in the map.
g)         The corporation uses the skimming pricing policy, comparative market policy, profit minimization polity and discounting pricing policy.
 
Chapter –III
3. SUMMARY, CONCLUSION AND RECOMMENDATION
3.1 Summary
            Nepal is an agricultural country and the development and improvement of agricultural products plays a private part in the development of Nepalese economy. In Nepal many people live their life depending upon agriculture only. Nowadays many organizations are established to uplift the economic condition of the Farmers.
            This study is about the “Marketing pattern of DDC in Biratnagar” and for this researcher has taken fiscal year for 2062/2063 to 2065/2066. This report has been divided into 3 main chapters, including different sub-chapters.
The first chapter entitled ‘ Introduction’ is Composed of Background, DDC Biratnagar Scheme, Objectives of the Study. The literature survey includes in this chapter is assembled with the modern and traditional concept of marketing and the definition given by some famous writer. This chapter is Presentation and Analysis of date are briefly analyzed and presented in a tabular form.
The third chapter is summary, conclusion and recommendation where the summary of the whole report and conclusion made after study and recommendation given to DDC is mentioned.
 
3.2 Conclusions
a)         The main aim of the corporation is to improve the socio-economic condition of the farmer of the Purbanchal Region by protecting their market and buying their products at a reasonable rate.
b)         DDC plays the main role to improve the socio-economic condition of farmers. It also provides employment opportunity to some extent and gives the consumer the quality products at right place, right time and right price.
c)         The corporation has it’s own vehicle that helps in transporting the raw-milk from the different parts.
d)the corporation consists of 5 major departments namely administration, collection, production, sales and accounting.
e)         The study of DDC marketing activities shows that it has been successful enough to satisfied its customer and make product according to the demand and will of customer.
f)         A corporation success in terms of profit to large depends on powerful marketing campaign. DDC seems to have done exactly the same with minimum amount of money for the maximization of profit.
g)         According to the data presented in table No.1 it shows that production capacity of the DDC is increased.
h)         Similarly according to the table No.2 the sales revenue of DDC is also in an increasing trend. And in table No.3 the milk collected out of the targeted milk is shown.
i)          The milk collected is the year 2070/71 to 2073/74 the milk collected has been decreased out of the targeted milk.
j)          Finally, it should be beyond about that a well-grown corporation like DDC will go a long way by putting new life in farmers ans uplift the socio-economic condition of the farmer.
 
 
 
 
 
 
 
3          Recommendatioin
  1)             As we know advertising is one of the most essential needs of the today’s  business. But the DDC has no any perfect advertising campaign, at the most concentration area. So to make people aware of product and to build its own image in the market it should adopt perfect advertising campaign.
 2)              As the consumer may need the products any time and in such situation  DDC should concentrate for direct marketing channel by expanding its shop at various places as one shop can’t give facility to the consumer at the perfect time.
 3)              DDC should quickly come up with the strategies to meet the growing needs of the organization and meet the competition and demand.
  4)             During the study it was found that the numbers of employees were less than required. This  could lead to inefficiency in work. So, DDC should hire the required numbers of employee in its each department.
  5)             The corporation till now is based on its manpower for different purpose. So, to get efficiency in the work it should adopt more advanced tactical system which helps to perform the work efficiency and efficiency which lead in minimization of cost of production.
 
 
 
 
 
 
 
 
 
 
 
APPENDICES
Table No.1
Total production (in liter) of different dairy product in 4 Fiscal year.
S.NName/Things2070/712071/722072/732073/74
1.Packet Milk3377627460096363785954274279
2.
Cream Milk
507884
814657
256700
996684
3.
Cup Curd
350154
405658
68483
3507998
4.
Curd liter
30176
134726
40368
50265
5.
Special Curd
129289
137298
6007
9087
6.
Packet Butter
31594
41358
13551
3000
7.
Butter
625
4140
2066
978
8.
Ice-Cream Cup
16664
24272
3178
2316
9.
Poly Pack Ghee 1kg
81335
147999
48148
90701
10.
Poly pack Ghee 1.5kg
11446
12632
2185
5275
11.
Cream 40%
181
274
121
173
12.
Cheese
1502
2652
881
2714
13.
Paneer
3224
4598
1704
1762
14.
Standardized Milk
1040
8624
926
1010
15.
Milk
13136
16660
3955
7275
 Total4555922685651168268688953618
 
                               Source:(Sales Department of DDC)
 
 
 
 
 
Table No.2
Sales (in Rs) of different dairy product in 4 Fiscal Year.
S.N
Name/Things
2070/71
2071/72
2072/73
2073/74
1.
Packet Milk
74237932
59419943
140329090
94036338
2.
Cream Milk
20990561
21150926
8674200
35913784
3.
Cup Curd
3501540
4056580
4684830
45079980
4.
Curd liter
3878670
4041780
3211040
1507950
5.
Special Curd
1057160
1305430
210245
318045
6.
Packet Butter
702702
833024
271020
69000
7.
Butter
13750
828000
413200
205380
8.
Ice-Cream Cup
199968
828100
111230
34740
9.
Poly Pack Ghee 1kg
17878088
29002260
20661460
39954220
10.
Poly pack Ghee 1.5kg
2407860
47388469
458850
1160500
11.
Cream 40%
25340
32960
16940
19895
12.
Cheese
363580
641933
2134719
651360
13.
Paneer
677040
755580
370230
370230
14.
Standardized Milk
22880
189728
22220
32340
15.
Milk
343096
121160
189150
290014
 
Total
126300167
170562873
181758496
209643776
                                   Source:(Sales Department of DDC)
 
 
 
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i)        Mecarthy, E, Jerome and Perreault, William D: Basic Marketing, a managerial approach 8th  ed.(Illionois Richard D. Irwin Inc),1984.
j)        Pride,William M & Ferrel O.C. Marketing; Basic Concept & Decision, 4th ed. (Boston: Houghton Miffin Col, 1985)
k)      Shrestha, Shyam K., Marketing strategy & Management, (Kathmandu: Padma Educational Traders, 1992.)
l)        Stanton Willam et.al., Fundamentals of Marketing, (New York: Mc Graw Hill  Book co,1994.)   
m)    Dairy Development Corporation, Biratnagar ( 2073/74 Data)

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