SUMMER TRAINING PROJECT REPORT ON STRATEGIES TO BE ADOPTED BY PARAG TO COUNTER AMUL MILK SALES IN LUCKNOW Submitted for the partial fulfillment of the requirement For the award of degree Of MASTER OF BUSINESS ADMINISTRATION (MBA) Degree Programme of U.P. Technical University, Lucknow
2008 – 2010 -: Submitted By :AKHILESH PRATAP SINGH M.B.A. IIIrd Sem Roll. No. 0812870005
-: Submitted To :-
BHARAT INSTITUTE OF TECHNOLOGY Partapur By pass Meerut (Affiliated to U.P. Technical Universuty Lucknow)
BHARAT INSTITUTE OF TECHNOLOGY ( Approved Approved by AICTE, Recognized by U.P. Govt. & Affiliated to U. P. Technical University, Lucknow)
Bye-Pass Road, Partapur, Meerut – 250 103
Phone: Off. – (0121) 6531892, 6533991, 3263721 Fax: 0121 – 2967001 E-mail:
[email protected] Website: www.bitmeerut.edu.in www.bitmeerut.edu.in
TO WHOM IT MAY CONCERN This is certify that Mr. Akhilesh Pratap Singh is a bonafide student of MBA third semester in our institute. He has submitted this project report titled “Strategies To Be Adopted By Parag To Counter Amul Milk Sales In Lucknow ” to fullfill the requirement of UPTU.
Teacher Guide Mr. Sunil Yadav
Prof. R.C. Shard (Director Management)
BHARAT INSTITUTE OF TECHNOLOGY ( Approved Approved by AICTE, Recognized by U.P. Govt. & Affiliated to U. P. Technical University, Lucknow)
Bye-Pass Road, Partapur, Meerut – 250 103
Phone: Off. – (0121) 6531892, 6533991, 3263721 Fax: 0121 – 2967001 E-mail:
[email protected] Website: www.bitmeerut.edu.in www.bitmeerut.edu.in
TO WHOM IT MAY CONCERN This is certify that Mr. Akhilesh Pratap Singh is a bonafide student of MBA third semester in our institute. He has submitted this project report titled “Strategies To Be Adopted By Parag To Counter Amul Milk Sales In Lucknow ” to fullfill the requirement of UPTU.
Teacher Guide Mr. Sunil Yadav
Prof. R.C. Shard (Director Management)
DECLARATION
I, AKHILESH PRATAP SINGH , hereby declared that the research work presented in this report “STRATEGIES TO BE ADOPTED BY PARAG TO COUNTER AMUL MILK SALES entitled “STRATEGIES IN LUCKNOW” for the fulfillment of the award of Master in Business Administration (M.B.A.)
from Uttar Pradesh Technical University (U.P.T.U.), Lucknow is based on my work during the summer training in the LUCKNOW PRODUCER’S CO-OPERATIVE CO-OPERATIVE MILK UNION LTD. The project embodies the result of original work and studies carried out by me and the contents of the project do not form he basis for the award of any other degree to me or to anybody else.
Date:
(AKHILESH PRATAP SINGH)
MBA (3rd semester) Roll No. (0812870005)
ACKOWNLEDGEMENT “Strategies to be adopted by PARAG to counter I am thankful to management to study the “Strategies AMUL milk sales in LUCKNOW” for granting the permission, corporation and valuable
information for competition of this project.
No words are enough to thank Mr. Manager marketing marketing) and Mr. Mr. D.P. D.P. SING SINGH H (Manager
U.N.
SINGH
(Manager adm./pers. ) LUCKNOW PRODUCER’S CO-OPERATIVE MILK UNION LTD
who not only inspired me to work on this project but also accepted to guide me.
In spite of heavy responsibilities responsibilities and busy schedules, schedules, they always managed time to provide provide proper guidance.
Last but not the least, I would like to say that my parents and friends for giving me their constant support and encouragement in completion of my project.
(AKHILESH PRATAP SINGH) MBA (3rd semester) Roll No. (08128700
PREFACE
One must have a contemporary understand of this dynamic world to survive or proper therein. Never in the past has the role of manager in India as crucial and exciting as now. The on going economic reforms programme has created infinite opportunities. There has been an increase in milk income gradually development have broadened the knowledge of consumers. There are now become choosy resulting in winners & looser at the same time winners those who monitors needs, identifies opportunities and create value. It is the market place not the factory that ultimately determines which company will succeed.
Marketing is practiced not only by manufacturing concern & their channel members but all kinds of individuals and organization. No politician can get the required votes to win and no “resor “resort” t” the needed needed touris touristt to flouri flourish sh withou withoutt develo developin ping g and carryin carrying g out the sound sound marketing plans.
Authentic market practice is not the art of selling what you make so much as knowing what to make. It is the art of identifying and understanding customer’s needs and coming up with solution that satisfy them and produces riches for firm’s profitability.
As we all know, future is always uncertain. More precisely when there is volley of brilliant competitors and each wants to be the market leader.
So in the light of intense competition satisfaction through product innovation maintaining
the standard quality their in, failing which no amount or deal of promotional measure or scheme can compensate at length. Competitive forces have compelled the companies to focus on specific segment of the market with frequent product innovation and rather new products and launching thereof with greater confidence.
The present study gives special emphasis on the various strategies to be adopted by Parag to counter Amul sales in Lucknow. The entire study has been divided into chapters and further subdivided into segments from each dealing with a separate aspect in a simple and lucid style and clarification has been given top priority throughout the project.
EXECUTIVE SUMMARY
The objective of the project is to study market potential of Parag milk and to know the consumer’s perception about Parag milk. The report contains a brief introduction of D.U.S. limited and its various products. Parag is the largest player in the milk sector.
At Parag quality is a relentless commitment to continuous improvements in products, process and systems to provide consistent quality products to meet our customer’s requirement worldwide. This report clearly mentions objectives of study and research methodology utilized. Research design used in this project is exploratory and the sources of information are both of primary data and secondary data. The data collection method used is structured non disguised questionnaire in which the types of questions. Used are open ended. Multiple choice, close ended and dichotomous. The report contains a detailed view of the tasks, which have been undertaken to analyze the market of Parag milk. Various set of questionnaire have been prepared to know perceptions of retailers and consumers about Parag milk. Some of the research areas are – Gomti Nagar, In. The comprehensive and intensive marketing activities at D.U.S. Ltd. Lucknow are control by manager marketing. Incharges marketing of the unit milk itself is the complete meal.
The route or supervisor duty is to see whether the milk and milk products are properly distributed to the agents of Parag in due proper time. They observe the market trend the competitor’s activities the difficulties of market. They try to penetrate in new market area where the agents of Parag do not exit. At the present the distribution of milk and milk product is done through Tata 407 vehicles which are arrange by the company.
In Lucknow Amul is strongest competitors in the fields of milk. Mostly agents as well consumers say that the quality of Parag will is much better when any other brand packed milk in Lucknow. Capturing a dominant share of the urban milk market hitherto served by a multitude of small milk vendors. Creating a procurement network of link numerous caperative producer societies in different milk shed area to the organized urban diary industry. Diary cooperative societies at the village level handling procurement of milk. Co-operative milk unions at the district level engaged in processing and product manufacturing. Predeshik co-operative diary federation (PCDF) at the states level charged with coordinates of marketing. Removing the middlemen between the producers and consumer by the procurement of the milk directly by the producer directly through cooperative society. In D.U.S. Ltd. Lucknow at reception point of milk from different societies milk is collected and basis test are carried out quickly after cleaning. It is send for further processing finally after pasteurization three types of milk obtain that is full cream milk, toned milk and Janta milk.
The route or supervisor duty is to see whether the milk and milk products are properly distributed to the agents of Parag in due proper time. The whole project has been a great learning for me to experience and understand the market dynamics with respect to an milk products.
CONTENT STRUCTURE PART-1 (1)
Introduction
2-4
(2)
Company Profile
5-11
(3)
Industrial Profile
12-21
(4)
Objective of company
22
(5)
Product profile
23-32
(6)
Rate of milk products
33
(7)
Quality control
34-36
(8)
Major Private Companies
37
(9)
Innovation
38-41
PART-2 (10)
Objective of study
43-45
(11)
Research Methodology
46-55
(12)
Data analysis & Interpretation
56-76
(13)
Finding
77-78
(14)
Limitation
79-80
(15)
Suggestion & Recommendations
81-82
(16)
Conclusion
83-85
(17)
Appendix
86-93
(18)
Bibliography
94-95
PART - 1
Introduction
AN INTODUCTION OF FMCG INDUSTRY The FMCG sector is a cornerstone of the Indian economy. This sector can drive growth, enhance quality of life, create jobs, and support penetration of technology. A vibrant FMCG sector can boost agricultural product and export. It contributed to the exchequer significantly, disperse technology across the value chain and usher in the product innovation. This innovation can improve Indian Health standards.
Fast Moving Consumer Good (FMCG) industry has a long history. However, the Indian FMCG began to take shape only during the last fifty-odd years Today, the Indian FMCG industry continues to suffer from a definitional dilemma. In fact, the industry is yet to crystallize in terms of definition and market, size, among others.
The definitional confusion that has marked the Indian FMCG industry is getting confounded. Some others call it the CPG industry and some even call it the PMCG industry. The Indian FMCG industry has suffered because of the confusion. It is an industry which touches every aspect of human life from looks to hygiene to palate. Perhaps defining as industry whose scope is so vast is not so easy. The government is at crossroads not knowing how and where to slot the Indian FMCG industry and unsurprisingly, the manner in which it has treated an industry which holds tremendous promise as producer of goods that pervade everyday life has been only callous. The facts that the FMCG industry is a noteworthy employer and a major tax payer are being ignored.
The only thing that is cheering the industry are the reforms of the nineties. Post reforms, the industries is excited about a burgeoning rural population whose income are rising and which is a willing to spend on goods designed to improve lifestyle. What is needed now is a change in the mindset of the mandarins, FMCG industry -friendly legislation are the needs of the hour. It does not matter whether changes are being brought about by dawning market realities or the ongoing economic reforms. One thing is certain here: The Indian FMCG industry has a promising future to look forward to.
In terms of growth potential, the Indian market is a great horse to bet on. With a little help and understanding from the government, the Indian FMCG can realize its true potential.
So far, it has been a checked graph for the MNC’s operating in the Indian FMCG industry. Domestic companies are only beginning to make their presence felt in the industry. It has taken tremendous consumer insight and market savings for the FMCG players to reach where they are today. But, the journey has only begun.
PROFILE OF THE COMPANY Name of the organisation
LUCKNOW PROODUCER’S CO-OPERATIVE MILK UNION LTD
Address of the organisation
22, Jopling Road, Lucknow
Established
1938
Registration
23rd March 1938
First Dairy Inspector
N.K. Bhargava
Place of Establishment
Initialy at Charbagh, Shifted to Ganesh ji, Presently at 22, Jopling Road, Lucknow
Founder
Raj bahadur Gopal Lal Pandya
Board Of Directors
Mr. Gopal Pandya Mr. N.C. Chaturvedi Mr. Tej Shanker Mr. Pushkar Nath Bhatt
Per Day Production Of initially 4000Ltr Milk Location
Initially Charbagh Now Present In 22, Jopling road, Lucknow
Area of Distribution
Initially- Bakshi ka talab, Tewari Ganj At Present- entire District
ABOUT THE COMPANY
The common brand name of the company is “PARAG” the meaning of PARAG is the pollen of flower the slogan in the logo is: -
PURE NATURAL & GOOD HEALTH Parag milk shed is situated in the Lucknow, the capital of Uttar Pradesh since independence it has formed part of the traditional supply line of agriculture products from the village to the big cities rich in its milk potential the milk shed has, in the source of last few decades been thoroughly exploited by small traders and powerful contractors and well organized private dairies. Thus, while such intermediaries were retaining large profits the rural milk producers found their position deteriorating day by day. In 1950-a co-operative milk supply union was organized in Lucknow , which started collecting milk from village and supplied to Lucknow and local markets. This milk union continued function for about a decade, in the mean time Lucknow milk scheme was established by government of India in 1959-60 to ensure cheaper milk to the local pollution of Lucknow. The scheme started operating through 12 chilling centers in Eastern Uttar Pradesh. These chilling centers were mainly coated in thither district of Lucknow , Barabanki, Raebareli , Kanpur, Unnao, Sitapur etc . The milk was mainly collected through contractors. 10 milk unions were also found almost at the same time, around each chilling center. These continued functioning in a rather lop-sided manner till 1977. Gradually all the milk union almost become defunctioning and was supplying very little quantity of milk during the years 1970-77. Obviously contractors had monopoly and collected major share of milk which was either supplied to Lucknow or to the local population of the city. This programmer was launched in Uttar Pradesh in 1972 and the implementing agency in the was pradeshik cooperative dairy federation limited which was framed in the year. The basic idea was to replicate anand pattern societies in Uttar Pradesh. In august September 1972
organization of societies in Lucknow district was taken up bar out, Mohanlalganj,Amausi blocks. A spear head team from national dairy development board was posted in Lucknow , which started functioning from April 1978 with a team of 27 employees drawn from Lucknow milk 198 milk procurement cooperative societies by the year 1981, when the operation fllod-14 programme ended. Feeded balancing dairy, Lucknow Producer’s Co-operative Milk Union Ltd was set up under operation flood-1 programmer with the specific purpose of supplying milk of local markets and other districts. Dairies and conversion surplus milk into various dairy products. This dairy is situated in the middle of Lucknow . The dairy was commissioned in April 1978 and processed the liquid milk procured from the then milk shed comprising Lucknow, Raebareli, Barabanki and Unnao. The purpose of establishing feeder balancing dairy, Lucknow co was to provide remunerative market for milk produced in the milk shed comprising district of Lucknow , Barabanki, Raebareli, Kanpur and Sitapur as envisaged under operation flood-1 scheme. Thus feeder balancing dairy was oblized to receive entire surplus milk from the rural areas, through a network of milk coop. In 1978-79 the average handing of milk per day at fbd-Lucknow Producer’s Co-operative Milk Union Ltd was 49,300kg. With peak handing of 1, 04,950kg in the feb. In April 1981 Lucknow Producer’s Co-operative Milk Union Ltd
launched pasteurized
whole milk packed in polythene sachet for local consumers. The supply of milk was gradually extended to other local markets .
As the basic idea of establishing FBD-Lucknow Producer’s Co-operative Milk Union Ltd was to convert surplus milk into various dairy-products, this activity started in sept. 1978
with manufacture of skimmed milk powder and ghee. The manufacturing of table butter was started from April 1981. In view of milk production procurement and marketing potential of Lucknow Producer’s Cooperative Milk Union Ltd , and expansion programme has been undertaken by N.D.D.B. on turn basis. The target set is as under:
Increasing processing capacity from 1 lack to 3.5 liters per day.
Increasing powder plant capacity from 10 tones to 40 tones per day.
Increasing the capacity of ghee plant from 1.m.t. to 4.m.t. per day.
Increasing the capacity of butter manufacturing up to 16.m.t. per day
The work of expansion has been complete in 1989.
The work of expanded dairy started functioning on full capacity in 1991-1993 year. The liquid milk and products are selling in the market in the brand name of PARAG. The milk product has been marketed by P.C.D.F. luck now. The sale of liquid milk has been carried out Lucknow Producer’s Co-operative Milk Union Ltd, Lucknow. In the year 1983 P.C.D.F. Ltd. started working under Operation Flood – II (White revolution) scheme. Mostly unit milk Sahakari Board where connected under Operation Flood – II, having the name Dugdh Utpadak Sahakari Sangh (D.U.S.S.) Ltd. P.C.D.F. Ltd. takes royalty of common brand name PARAG and all the important policy taken by Pradeshik Cooperative Dairy Federation Ltd. Who monitors to all the D.U.S.S. Ltd. i.e. Lucknow , Kanpur, Varanasi
.
PARAG provides hygienic, nutritious milk and milk product. In the year 1983 Operation Flood – II scheme was launched, the main objectives of the Operation Flood were following – •
To collect the milk directly from the producers (Villagers through society).
•
To insure the supply of quality milk collected from the villagers which being sold in the market area of city.
•
To save the producers, villagers and the customers from the middle man.
•
The milk is collected firstly to the society level then it comes to D.U.S.S. level finely it comes under the state level i.e. federation.
ANALYSIS OF MILK INDUSTRY
Traditionally, in India dairying has been a rural cottage industry. Semi-commercial dairying started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of nineteenth century.
In earlier years, many households own their own ‘family cow’ or secured milk from a neighbor who had one. With the increase in urban population fewer households could afford to keep a cow for private use and moreover there were other problems also like the high cost of milk production, problems of sanitation etc. restricted the practice; and gradually the family cow in the city was eliminated and city cattle were all sent back to the rural areas.
Gradually farmers living near the cities took advantage of their proximity to the cities and began supplying milk to the urban population; this gave rise to the fluid milk-sheds we see today in every city of our country.
Prior to the 1815 most milk was necessarily produced within a short distance of the place of consumption because of lack of suitable means of transportation and refrigeration.
The Indian Dairy Industry has made rapid progress since independence. A large number of modern milk plans and product factories have since being established. These organized dairies have been successfully engaged in the routine commercial production of pasteurized bottled milk and various western and dairy products. With modern knowledge of the protection of milk during transportation, it became possible to locate dairies where land was less expensive and crops could be grown more economically.
In India, the market milk technology may be considered to have commenced in 1950, with the functioning of the Central Dairy of Aarey Milk Colony, and milk product technology in 1956 with the establishment of Amul dairy, Anand.
Indian dairy sector is still mainly and unorganized sector as barely 10% of our total milk production undergoes organized handeling.
DAIRY DEVELOPMENT IN UTTAR PRADESH (AT A GLANCE) U.P. is the highest milk producing State in India having a share of 18% of the total production of the country. The per capita availability of milk has gone up to 224 grams. Dairy development programme is being implemented in State through the following sectors:
Cooperative Sector
Private Sector
Cooperative Sector:
In the year 1917 saw the advent of the First Co-operative Milk Society at Katra,
LUCKNOW. It was unfortunate that no special efforts were made in this direction for the
next two decades. It was then in the year 1938 LUCKNOW PRODUCER’S COOPERATIVE MILK UNION was established. In the coming years Lucknow, Varanasi,
Kanpur, Haldwani, Nainital and Lucknow Milk Unions saw the light of the day.
To accelerate the pace of Dairy Development in the State a State Level apex
autonomous unit PRADESHIK CO-OPERATIVE DAIRY FEDERATION LIMITED was established in the year 1962. Initially the federation played the role of a Technical Advisor. As years went by PCDF Ltd. became proficient and was given the World Bank assisted Operation Flood Programme in the State. Objectives of the O.F. Programme (1)
Capturing a dominant share of the urban milk market, hitherto served by a multitude of
small milk vendors. (2)
Creating a procurement network to link numerous cooperative producer societies
in different milk shed areas to the organized urban dairy industry.
(3)
Upgrading the milk production capacity of Indian bovine stock through a
programme of crossbreeding, veterinary services and auxiliary activities. The Operation Flood Programme in the State was being implemented by a three tier cooperative structure :(1)
Dairy cooperative societies at the village level handling procurement of milk.
(2)
Co-operative Milk Unions at the district level engaged in processing and
product manufacturing. (3)
Pradeshik Co-operative Dairy Federation (PCDF) at the State level charged
with the coordination of marketing.
Operation Flood-I was initiated in 1971 and covered 8 districts of the Lucknow and Varanasi milk sheds. Besides Cattle Feed Factory of one handed Metric Tone capacity each at Lucknow and Varanasi were established. Operation Flood-II started in 1982, wherein coverage was extended to 28 districts.
Operation Flood-III launched in 1987 and included two more districts, so that of the total 83 districts, was implemented in 30 districts/as of date the coverage has been extended to 41 districts. The Operation Flood Programme completed its third phase in the year 199495. The federation is equipped with sophisticated plants and machinery to manufacture Ghee, Table Butter, Milk Powder, Infant Milk Food and other dairy products on a big scale. Our manufacturing capacity covers approximately 37 MT Ghee, 30 MT Butter and 55 MT of Milk Powder Daily. The Net Capacity available with the affiliated Milk Unions including the newly acquired Parag Dairy – Stand at (Dairy: 1530 TLPD/Chilling (Hired: 180 TLPD/Owned : 660 TLPD).
The progress achieved till the year 1999-2000 indicates the total functional VDC’s at 10865 with a membership of 5.51 lacs. Procurement and Sales figure for the year reflect 7.28 lacs K.G.s and 4.27 Lacs liter respectively. In addition the federation is also marketing milk in the N.M.G., the figures for the year 1999-2000 stand at 3-20 lacs K.G.s As a technical support to its base activity the federation is also supplying Fodder Seeds and Cattle Feed to its producer members. The federation is Lucknow and Varanasi and has marketed 37144 MT cattle feed. Similarly the federation operates a Seed Processing and Marketing Unit at Aligarh. The total fodder seeds distribution by this unit stand at 3017 Quintal. It is to state that we are also marketing fodder seeds to neighbouring state including Tamilnadu and West Bengal.
GENERAL IMPACT – O.F. PROGRAMME
Real ground work in dairying has been done be the co-operatives.Due awareness has been created in the minds of producers and urban consumers of the state.Co-operative have succeeded in the social and economic upliftment of women and down trodden in the rural society.Loss of genetic material by the middleman has been chedked to considerable extent. Rural migration to the cities curtailed because of continuous and sustainable employment generation at village level.In its efforts to replicate the programme and accelerate that development in the remaining districts of the state a parallel body in the form of Rajya Dugdh Parishad played the role of mainly a licensing authority. Later on in the year 1990 the Parishad was given the charge to work parallely in Non-Operation Flood Districts. At present 42 districts are covered through 33 district level milk unions. The net capacities available with the affiliated milk unions including the newly acquired Parag dairy -Stand at (Dairy : 155 TLDP/Chilling : 100 TLPD/Owned 161 TLPD).
The progress achieved till the year 1999-2000 indicate the total functional VDC’s at 5381 with a membership of 2.75 lacs. Procurement and Sales figure for the year reflect 1.57 lacs K.G.S. and 1.09 lacs liter respectively.
Private sector:
Presently 25 registered private dairy are functioning in different districts of the State, with a total handling capacity of 46.64 lacs liter per day.The Dairy Development Department is also running some supportive programmes for dairy development in state of Uttar Pradesh as : IMDP, WDP, RFWP, UPDASP, SCP, Shwet Kranti Yojna. IMDP – Intensive Mini Dairy Project:
The largest employment generation programme named a IMDP under Deen Dayal Rojgar Yojna was initiated in the year 1991. The programme was launched in 17 districts of the State in the first phase. In due course of time the scheme at the Government level was renamed as Vishes Rojgar Yojna. For the year 1999-2000 the total number of mini dairy stands at 18, 5000 in 73 districts of the state. WDP – Women Dairy Project:
In its efforts to remove gender basis the state Government has initiated WDP through Government of India, wherein part of the programme is being funded under the STEP programme of the State Government. The progress as on date reflects 2096 women societies with a membership of 80345.
RFWP – Rural Family Welfare Programme :
Under the aegis of SIFPSA a family welfare project is running at present. It is an ideal programme for family welfare through dairy cooperative society. It is currently operating in 13 districts. Further 3 new districts will be added U.P.
UPDASP – Uttar Pradesh Diversified Agriculture Support Project:
A World Bank assisted Project it is operative through the following components:- PHAP Public Health Awareness Programme.The programme is operational in 15 districts of the State for a period of MRCB – Milk Recording & Conservation of Breed. The programme is operational in 07 districts of the state for a period of Special Achievements/Initiatives The highest ever Milk Procurement in a single day that touched the magical 13.58 Kgs Mark.Efforts are on to bring in our Major Dairies under the ISO 9002 fold, wherein Lucknow Dairy & Parag Dairy have already been awarded the ISO 9002 Certification. To fulfill the vision and the dream of strengthening the Federation of that it is able to meet the ever increasing competition on all fronts an Satat Sudhar Yojna has been initiated.Total NMG supplies 3.20 lac liters/day.
OBJECTIVES OF COMPANY
OBJECTIVES
PCDF’S front-end objective was to see that there was enough milk for everyone in town. Marketing is simply the PCDF’S tool to achieve their ultimate objective and delivering the pure parag milk to every home.
PURPOSE
PCDF’S aims to build a system to ensure that individual farmer got a fair price for the milk he sold.
MISSION
PCDF’S mission is to become the strongest marketing organization by 2005.PCDF’S came into existence in 23rd march 1938,with the simple intension of ensuring a fair return to the producers. Which was implemented in UP is the year 1983-1984 provided the much needed impetus to co-operation. The mission was to develop a product mix that would not only promote sustained growth but also help member union to develop adequate. Production and processing facilities. It also aimed to offer quality products at fair price, and to do so by achieving economies of scale and costs. And this mission gave birth to brands like parag and Amul.
VISION
To increase it’s number of Parag milk customers and its turnover to 50 crores by 2005 by product diversification
PRODUCT PROFILE MILK PRODUCTS
(1) Butter
It contains less than 80% milk fat and more than 15% moisture and high acidity. It is prepared exclusively from milk cream of curd of cow or buffalo milk without the addition of salt, color or any preservative and is intended for cooking or for preparation of Ghee.
(2) Ghee
About 43% of total quantity of milk produced in India is manufactured first into butter and then converted into Ghee. Bulk of Ghee is derived from buffalo milk because it is richer in fat that cow milk. In Parag surplus butter is mutted in steam jacket kettles. Which are equipped with mechanical stirrers and heated with steam till the moisture is removed.
(3) Paneer
In Parag, Paneer is produced by the traditional method in which citric acid is added to the boiled milk and the milk immediately gets adulterated and water is separated and paneer is obtained. It contains less than 50% frat of more than 60% moisture.
(4) Others
Skimmed milk powder, cake and khoya are other products produced by Parag.
Future Products Some new products like coffee powder, ready to make ice-cream powder, baby food and other milk drinks are in the testing stages.
PARAG’S MILK PRODUCTS:•
Butter available in 20 gm., 100 gm., and 500 gm. packs.
•
Pure Ghee available ½ Kg.
•
Paneer - vailable in 100 gm.
•
Skimmed milk powder - in 500 gm. cartons & 200 & 500 gm. plastic bottles.
RATE OF MILK AND MILK PRODUCT
Name of Milk & Milk Product
Agent Rate
Consumer Rate
1.
F.C.M.
25.50P/L
27.00
2.
TONED MILK
20.00P/L
22.00
3.
JANTA MILK
17.00 P/L
18.00
4.
LOOSE MILK (IN CANTS)
19.00 P/L
20.00
5.
GHEE/1LITER PACK
215.00 P/L
250.00
6.
BUTTER 100 GRAM
15 RS
20 RS
7. BUTTER 500 GRAM
72.50 RS
90 RS
8. PANEER
147.00 P/KG
170.00
9. MATTHA (200 ML)
4.50 P.P.
5.00
10. DAHI
9.00 P. CUP
10.00
QUALITY CONTROL Quality control is an essential and most important department for any manufacturer. Today every organization has efficient quality control system. Quality control is depend upon only practical (Survey Analysis and Right Procedure). In D.U.S.S. Ltd. LUCKNOW at reception point of milk from different societies (Producers Villagers) Milk is collected and basic test are carried out quickly after cleaning it is send for further processing. Finally after pasteurization three type of milk obtain that is Full cream milk. Toned Milk, Janta Milk. Milk procedure out through some stages---------------------1. ORGANO LEPTIC TEST –
It passes through three stages this is the first type of testing milk. •
Seeing
•
Smell
•
Testing
2. CLOT ON BOILING TEST –
After testing checking is done between good and pour milk. •
Formalin test
•
Soda test
•
Urea test
•
Sugar test
•
Caustic test
These tests are based on c lot on boiling test
3. S.P.C. (Standard plate count) TEST –
In this type of testing not more than 25000 Bacteria’s should be present in one ml of milk.
4. CLR (Correct Lacto Meter Reading) Test –
In this type of testing is done to find out quantity of water in milk. 11%, 135% should be is LATIC ACID in the milk.
5. M.B.R.T. (Methyl Blue Reduction Test) –
M.B.R.T. test is done for milk pasteurization. Heating temperature should be 72 – 80 Degree centigrade. Chilled temperature should be 5 degree below
6. S.N.F. Test (Solid not fat) –
S.N.F. test is based on lactometer test. S.N.F.=CLR/R x .2 X fat %+.29 (this formula is used for Big lactometer) S.N.F.=CLR/4 x .2 x 5%+.50 (this formula is used for small lactometer)
AFTER STERILIZATION NUMBER OF VITAL TEST ARE EXECUTED –
1. TOTAL SOLID TEST 2. ACIDITY TEST 3. SUCROSE TEST 4. TEXTURE TEST 5. MILK FAT TEST – Milk fat teat is used in GURBUR MACHINE and ACID. FAT = 5 ML (Sulfuric Acid) + 10 ML Milk + 1 ML (Ethyl Alcohol)
This mixture is rotated in GURBUR MACHINE and quantity of fat in milk is seen. The most important test i.e. phosphorous test and Methyl test Blue reduction test. 1.
Phosphorous test is user for confirm the pasteurization of milk.
2.
M.B.R.T. (Methyl Blue Reduction) test is used for maintaining appropriate quality of milk in every half an hour. It is done with full responsibility and care so that the offered product to the consumer could be reached with appropriate CALORIFIC VALUE.
THE MAJOR PRIVATE COMPANIES ENTERING THE DAIRY SECTOR ARE 1)
Milk specialties in Punjab.
2)
Amrutha Foods & Beverages in Bhubaneshwar, Orissa.
3)
Cephem Milk in Chittor, Andhra Pradesh.
4)
J.K. Dairy & Foods of J.K. Industries in Muradabad in U.P.
5)
Khaitan Agro in Buland-Sahar in U.P.
6)
Modern dairy in Karnal, Haryana.
7)
Thapar Agro in Alvar, Rajasthan.
8)
Gyan Dairy in Lucknow U.P.
9)
Gokul Dairy in Lucknow U.P.
10)
Heritage foods in Chittor , Andhra Pradesh.
11)
Dhara Dairy in Kanpur U.P.
The Dairy sector now processes in compelling competition from private quarters; in order to survive the co-operative sector now has to undergo a phase of corporate restructuring & up gradation of product to live up to ultimate health & hygienic conditions. In the words, of Prof. V. J. Kurian, Chairman of N.D.D.B. the co-operative sector has to bring about the complete metamorphosis if its want to remain in the rac
INNOVATIONS TO BE MADE Potential for Process Innovations The modernization of the manufacturing process of traditional dairy products is long overdue. But, there is no need to reinvent the wheel because some of the food processing methods available in the west can be usefully adapted to mass-produce traditional products. Some process modifications may, however, become necessary.
Pioneers in the field In recent years, process innovations have been initiated at the National Dairy Development Board (NDDB) and the National Dairy Research Institute (NDRI) for the assembly-line production of burfi, dahi, kheer, shrikhand, gulabjamun, rasagollas, mishti doi and the like, by adapting the Western tools and technology. The use of western products like concentrated and dried milk powder for making chhana and khoa needs to be adopted in modern dairy plants, as also at the halwai level.
An outstanding example of Western technology adaptation is the manufacture of shrikhand on a large scale, using basket centrifuges, quarg separators and planetory mixers, used by bakeries. Today, the volume of shrikhand manufactured by the organized sector exceeds that of processed cheese sold in India.
The most modern plant associated with the manufacture of traditional dairy products is the Baroda District Cooperative Milk Producers Union Ltd. (Sugam Dairy) at Vadodara in Gujarat. It markets its products through a large network of 150 retail outlets in the city. The Sugam Dairy uses the traditional grocery/general stores that have a refrigerator to market its products. The product range includes shrikhand, gulabjamuns, pedas and lassi , apart from flavored milks. The dairy has the highest turnover of a single unit, marketing traditional dairy products.
The Mother Dairy in Calcutta markets mishti doi and dahi in a similar fashion. Dairies in Punjab and Haryana market paneer and kalakand (also, lately, milk cake). Cooperative dairies in Tamil Nadu, Andhra Pradesh and Karnataka also sell makkhan( butter), khoa, peda(a form of sweetmeat) and kulfi .
Warana and Mahanand dairies in Maharashtra are also marketing shrikhand through their sales outlets.
Potential for more The manufacture of khoa, using roller dryers and other scraped surface heat exchangers, is instance of the use of the Western technology.
UF/RO technologies can also be used for the making of chhana and concentration of milk for many indigenous dairy products.
The use of meat ball forming machines and potato fryers for manufacturing gulabjamuns on large scale is a good example of integrating modern technology with the traditional process.
The packaging of these products can also follow a similar approach. In Italy, Mozzarella cheese balls are being packed in whey in consumer packs. This can be tried to market rasagollas and gulabjamuns.
Chocolate and candy packaging lines can be used to pack burfi and peda. Tetrapaks can be used to pack lassi, basundi, kheer and sevian.
An example of this technique is the process by which the Japanese manufacture Tofu, which resembles paneer.
The modernization of this sector will also result in energy savings. While manufacturing sweets in the traditional manner, a lot of heat energy goes waste which can possibly be recovered in a modern plant. Evaporation of milk in a karahi consumes five times more energy than in a vacuum evaporator. Whey is being drained, today, from the small scale manufacture of paneer and chhana . This causes pollution and degradation of the environment. Most of the whey in a modern plant can be recovered for the manufacture of lactose/lactates. Then, India need not import some 5,000 tonnes of lactose annually. Rather, it may be in a position to export it.
The preparation of these products by traditional methods needs to be studied and well documented on a scientific basis. The technological parameters, biochemical changes and the perishability of these products should be further researched to develop unit processes required for the large scale manufacture.
Foreseeable Advantages of Process Innovation Many ingredients used in the preparation of traditional dairy products are adulterated. In fact, many food colors used in these products may actually be carcinogenic. Branding of these products will lead to the use of pure ingredients as the manufacturers would make serious efforts to protect their brand names. The Bureau of Indian Standards (BIS) has now worked out standard specifications for the quality of khoa, shrikhand, burfi, rasagollas and gulabjamuns. This is encouraging, and the quality standards should be specified for all other important traditional products.
Large scale manufacture of these products will also open possibilities for trying out newer ingredients. The processed food industry in the United States has emerged as the largest
user of corn syrup solids and high fructose corn syrup. These sweeteners add to the moisture retention properties of many foods apart from adjusting the sweetness to a desired level. These are exciting possibilities that can be explored to the advantage of the processors and consumers.
The production of traditional products through modern technology can ensure utilizing larger quantities of milk during the flush season, thus helping in stabilizing farmer prices. The technology of recombining milk constituents can also help in making these products available in the lean season,.and in far-off places. Shrikhand is being manufactured in the winter for consumption in the summer months, reducing the pressure on limited milk supplies during the lean period. Khoa has also been stored at low temperatures for use in the summer.
The consumer will ultimately decide how far these modifications will be accepted. The advent of convenience foods and their increased acceptability will further support the modernization in this sector. While some attempts have been made to strengthen the R&D base for indigenous dairy products, very little use of modern technologies is being seen in the market place. A focused attempt is needed in this direction
PART - 2
objective of study
OBJECTIVE OF THE STUDY The most important objective of the project is that it is obligatory on the part of the student of M.B.A. programme to undergo the convention of the business administration in the partial fulfillment of M.B.A. degree besides, project study is a sort of practical training of eight weeks thus the student are benefited by undertaking such a study as it helps organization in overcoming administrative, financial, marketing and other problems what ever they may be interested in for the sake of simplicity the objectives of this study can be classified under three heads:
PRINCIPAL OBJECTIVE
To find out the various strategies to be adapted by Parag to counter milk sales of Amul in Lucknow .
To find various ways to increase Parag milk sales in Lucknow.
To discover the various factors which hurdles people to take Parag milk.
To identify various factors which motivates people to use Parag milk.
To discover the main reason beyond shifting of customers from Parag milk to Amul milk.
ANCILLARY OBJECTIVE
To appraise the level of penetration of the brands of Parag.
SCOPE OF THE STUDY The study is confined to to finding various strategis to be adapted by Parag to encounter Amul sales only in Lucknow.
FIELD WORK Interviewing the distributors, retailers, and customers to ascertain brand sales, marketshare, brand awareness and performance of competing brands. Tried to fill up questionnaire before the customer of all levels.
Research Methodology
RESEARCH METHODOLOGY Research:-
The study of research method provides you with the knowledge and skills you need to solve the problem and meet the challenges of the fast- based decision. Marketing environment we define Business Research as a systematic inquiry whose objective is to provide information to solve managerial problem.
.RESEARCH METHODOLOGY 1. MARKET RESEARCH PROCESS 2. STATEMENT OF THE PROBLEM 3. RESEARCH OBJECTIVES 4. PRELIMINARY INVESTIGATION 5. FOCUS OF THE STUDY 6. STUDY DESIGN 7. SAMPLING 8. NATURE OF DATA
9. MEANS OF DATA COLLECTION 10. SUREVY INSTRUMENT 11. PROCESS OF DATA COLLECTION
MARKETING RESEARCH PROCESS: Marketing research is the systematic design, collection, analysis and reporting of data and finding relevant to a specific marketing situation facing the company.
Marketing Research Process: Define the problem & research objective
Develop the research plan
Collect the information
Analyze the information
Present the findings
Make decision
Step 1: Define the problem & the research objectives The 1st step in research is formulation a research problem. It is most important stage as poorly defined problems will not yield useful results also the marketing management must be careful not to define the problem too broadly or too narrowly. In order to identify the research problem, 3 categories of symptomatic situations, namely, overt difficulties, latent difficulties and unnoticed opportunities should be studied over difficulties are those which manifest themselves. Latent difficulties are those which are not so apparent and which, if not checked, would soon become evident unnoticed opportunities indicate the potential for growth in a certain area of marketing. Such opportunities are not clearly seen and done effort is required to explore them.
Step 2: Develop the research plan Designing a research plan calls for decision on data sources, choice of research design, research approaches, research instruments, sampling plan and contact methods.
Step 3: Collect the information
I have collected the information over a period of 45 days and from various locations in Meerut region. Step 4: Analyze the information
After the process of gathering information completed I tabulated the data and extracted the finding from the survey.
Step 5: Present the finding Finally findings is to be presented along with was recommendations
Step 6: Make the decision The last step is of making the decision
STATEMENT OF THE PROBLEM: The present paper aims at finding the institutional consumer behavior. The research problem investigated here in has been precisely defined as - “Strategies to be adopted by parag to counter amul milk sales in Lucknow.’’
RESEARCH OBJECTIVES:
To find out the various strategies to be adapted by Parag of milk Sales Promotion in Lucknow.
To find various ways to increase the sales of Parag milk in Lucknow region.
To discover the various factors which hurdles people to take Parag milk.
To identify various factors, which motivates people to use Parag milk.
To discover the main reason for shifting of customers from Parag milk to others.
PRELIMINARY INVESTIGATON: After getting through of the research objective I go through step of the preliminary investigation to find out the necessary information to fill out the objectives of the study. The information expected to be collected on the basis of the preliminary investigation are:1. The strategy of company for competing with the other company. 2.
To find various ways to increase the sales of Parag milk in Lucknow region
3.
The main reason for shifting of customers from Parag milk to others.
FOCUS OF STUDY: This study mainly focuses on:1. The satisfaction level of consumer and retailer. The study based on the feedback collected from the filled questionnaire. 2. Whether the retailer and consumer satisfied with the supplied product or not. 3. If customer is satisfied up to what extent & if is not satisfied why, what is the reason behind this.
Sampling: I used Random Sampling because from a finite population refer to that method of sample selection which gives each of possible sample of combination an equal
probability of being picked up and each item in the entire population to have an equal chance of being included in the sample.
Sample:The data has been collected by selecting a sample size of 100 sellers and 250 consumers, and various sampling techniques has been used to collect data. sampling techniques which has been used in data
COLLECTION OF DATA Secondary data has been collected from Secondary data is what the researcher collects from different sources . It also helps me to get elaborate information to do my research.
Books
Magazines
Internet
Company annual reports
Research papers
Govt. Publications
Past Records And Files
Journals and periodicals pertaining to different brands and segments of milk.
PRIMARY DATA The primary data have been collected with the help of a questionnaire, prepared specially for the retailers and consumers to be administered for their responses
Questionnaire Direct Interview.
ADVANTAGE OF SAMPLING OVER COMPLETE CENSUS The main advantage of sampling technique over the complete enumeration survey may be outlined as follows:
Less time
Reduced the cost of survey
Grate accuracy of the result
Greater scope
Both primary as well as secondry data has been used in the study.
Research design: Since the basic solution of the problem lies in understanding the human behviour and processing Numeric figures. Therefore the following research design and techniques has been used to carry research: ♦
Qualitative research
♦
Quantitative research
♦
Depth interview
♦
Indirect research (used in need)
Marketing Mix
In market as there many types of products are available so it becomes difficult for the marketers to peruse the right segment market so that they can position their product effectively to target customer. In order for this they use mix of tools of marketing, which is, know as marketing mix. Marketing mix is a set of marketing tools that the firm uses to peruse its marketing objectives in the target market. Theses tool s can be classified broadly into four Ps of marketing, Product, Price, Place, and Promotion.
MARKETING MIX
PRODUCT 1. 2. 3. 4.
Variety Quality Design Brand Name
PRICE
PLACE
PROMOTION
1. List Price 2. Discounts 3. Allowances 4. Credit Norms
1. Channels 2. Coverage 3. Locations 4. Inventory
1. Advertisements 2. Sales Force 3. Public Relations 4. Direct Marketing
TARGET MARKET
FARMERS
Village Village Cooperative Cooperative DISRIBUTUION Local CHANNEL Restaurants/ Milk Sold to Societies (with Societies (without Village and In today’s economy, most producers do not sale Others goods Milk directly to final consumer. ButLocal Chilling Chilling Related Business Residents Units) Units) between them and final consumer their stand host of marketing intermediaries such as Brokers, Distributors, retailers, sales agents searching of customers and may negotiate on behalf of the producers and do not take the title of the goods these are what called middleman Milk Processing Union Network Services channels performs A distribution the works of moving goods from the producer Chilling Plants to & Warehouses consumers. It overcomes the line, place and increases the utility of goods and services. Veterinary Services. Animal Collection of Milk Process In Parag GDUSL Warehouses Husbandry. Animal Feed Factory. Milk Can Producer. Warehouses and C & S Agriculture University. Rural Management Home Delivery Institute. Retailers Contractors Trucking Facilities.
Customers
Data Analysis Lucknow Producers Co-Operative Milk Union Ltd Survey Area- Gomti Nagar, Indira nagar, Kapoorthala, Vikasnagar
Agents Survey Report I Have meet with around 100 sellers of milk and found the following information from the agent’s answer of the relevant questionnaire. These charts are made according to the found data during summer training on 100 questionnaire.
Product
No. of Agents
Parag
60
Amul
40 Table No. 1
Chart No. 1
INTERPRATAION- Here I have taken sample size of agent’s is 100 to understand the total market share of milk brand. There for we can see that shop parag is more than Amul only 40% shops sale the Amul out of 100% and Parag shop is 60%.
Q. How Much Crates you sold in a day?
Product
No. of Crates
Parag
790
Amul
748 Table No. 2
Chart No. 2
INTERPRATAION - Sale of milk per day, of parag is 790 crates per day and sale of amul milk is 748 crates per day. Sale of Parag milk is better than Amul.
Q- Are the availability of Parag milk is sufficient?
Response
Percentage
Yes
80% No
20% Table No. 3
Chart No. 3
INTERPRATAION -
In my survey 80% agents satisfied with the availability of milk
and 20% agents are not satisfied the availability of the milk.
Q- Are you satisfied with product delivery time?
Response
Percentage
Yes
53% No
47% Table No. 4
Chart No. 4
INTERPRATAION -
53% of agents said that delivery time of product is good and
47% agents said that is bad.
Q- Margin of Sales is sufficient or not?
Response
Percentage
Yes
30% No
70% Table No. 5
Chart No. 5
INTERPRATAION - Most of the agents said that margin of sale is not sufficient and few agents said that margin of sale is sufficient.
Q- Behavior of driver is?
Response
Percentage
Excellent
56%
Good
24%
Average
12%
Bad
8% Table No. 6
Chart No. 6
INTERPRATAION -
In my survey 56% agents said that the behavior of driver is
excellent 24% agents said that it is good, 12% agents said that it is average and 8% said that is bad.
Q- Quality of Parag is
Response
Percentage
Excellent
33%
Good
46%
Average
13%
Bad
8% Table No. 7
Chart No. 7
INTERPRATAION - During the survey
33% agents said that the quality of parag is
excellent, 46% said good, 13% said average and only 8% said that the quality of parag is bad.
Q- Customer purchase milk because of
Factor
Percentage
Taste
23%
Quality
54%
Availability
15%
Others
8% Table No. 8
Chart No. 8
INTERPRATAION -
In my survey agents said that 23% customer purchase
parag due to price, 54% due to quality, 15% due to availability and 8% due to others reason.
Report of Consumer Q- Which Brand do you use?
Product
Percentage
Parag
47%
Amul
33%
Others
20% Table No. 1
Chart No. 1
ITERPRATAION:
During my survey it was observed that 47% consumers consume
Parag milk , while 33% consumers consume Amul milk and 20% consumers consume other Milk brands including loose milk supplied by milkmen.
Q- How do you know about Parag Milk? Medium
Percentage
Advertisement
53%
Shopkeeper
32%
Others
15% Table No. 2
Chart No. 2
INTERPRETATION: When customers were asked that how do They came to know about Parag milk 53% of customers replied through advertisement, 32% of Customers replied through their local shopkeepers and 15% Of customers replied by other means.
Q- Quantity Consumed by you?
Quantity
Percentage
3 Litre
30%
2 Litre
45%
1+ Litre
13%
1 Litre
12% Table No. 3
Chart No. 3
INTERPRETATION: I found my survey that 30% consumer consume 3 liter milk per day , 45% consumer consume 2 liter milk per day & 13 % consumer consume 1+ liter per day while only 12% consumer consume 1 liter of milk per
Q- Why do you choose a particular brand?
Reason
Percentage
Home Delivery
10%
Easy Availability
23%
Price
22%
Quality
45% Table No. 4
Chart No. 4
INTERPRETATION:It was observed during survey that different person consume a particular brand because Of many factors. 10% of consumers consume a particular Brand of milk because of Home Delivery, while 23% of consumers Consume a particular band of milk because of Easy availability and 22% of consumers consume a particular brand because of Price, 45% of consumers consume a Particular brand because of Quality of the product
provided to them by the company.
Q- Why are you using Parag Milk? Reason
Percentage
Home Delivery
5%
Easy Availability
28%
Price
16%
Quality
51%
Table No. 5
Chart No. 5
INTERPRETATION: When the customers using Parag milk where asked that they Use Parag milk the 5% of customers replied with the answer Because of Home Delivery of the Milk , 28% of customers replied with the answer because of Easy Availability, while 16% of
customers replied with the answer that Because of Parag Milk price is very good and rest 51% replied with that the quality of parag milk is very good .
Q- Why are you not using Parag Milk? Reason
Percentage
Home Delivery
9%
Easy Availability
18%
Price
47%
Quality
26%
Table No. 6
Chart No. 6
INTERPRETATION: When customers not using Parag milk were asked reason for not using the Parag milk many reasons were found . 9% of the customers do not prefer Parag because of its high price,18% of consumers do not consume Parag milk because of nonavailability of the Parag milk at their nearest shopkeepers, while 47% of customers do not use Parag milk because of no home delivery service , 26% of consumers do not prefer Parag milk because of Low Quality of Parag milk which they found in parag as their consideration.
Q- How do you Purchase Milk?
Medium
Percentage
Yourself
83%
Home delivery
17% Table No. 7
Chart No. 7
INTERPRETATION: When customers were asked that How do they Purchase the milk than 83% of customers with the Answer themselves and 17% of the customers responded with the answer Home Delivery.
Q- Do you want home delivery facility?
Response
Percentage
Yes
88%
No
12% Table No. 8
Chart No. 8
INTERPRETATION: When customers were asked that do they want home delivery of Parag milk, 88% of customers with the Answer yes and 12% of the customers responded with the answer no.
Q- Do you want home delivery facility regarding extra charge? Response
Percentage
Yes
75%
No
25% Table No. 9
Chart No. 9
INTERPRETATION: When customers were asked that do they want home delivery with extra charges of Parag milk, 75% of customers with the Answer yes and 25% of the customers responded with the answer no.
Q- What type of Parag Milk do you used?
Type Of Milk
Percentage
Standardized
37%
Full Cream
33%
Toned Milk
20%
Loose Milk
10% Table No. 10
Chart No. 10
INTERPRETATION: When customers were asked that what type of Parag milk do they use more 37% of customers replied with standardized milk,33% answered Full Cream, Toned Milk 20% and 10% preferred loose milk.
Q- Are you change from one brand to another brand?
Response
Percentage
Yes
53%
No
47% Table No. 11
Chart No. 11
INTERPRETATION: When customers were asked that were they change from one brand brand to another another brand, 53% of customers customers with the Answer yes and 47% of the customers customers responded with the answer no.
Q- Overall Experience with Parag?
Response
Percentage
Excellent
10%
Good
61%
Fair
22%
Poor
7%
Table No. 12
Chart No. 12
INTERPRETATION: When customers were asked that what is the overall experience with Parag then, 10% of customers replied with the Answer excellent, 61% customers replied good, 22% customers replied fair and 7% of the customers responded with the answer poor.
FINDINGS In Lucknow competitors like Amul, Mother Dairy, Paras and private milk product. Among all these Amul is strongest Competitors in the field of butter while Anik and PARAG sell ghee but in The field of packed milk PARAG is leading brand. If brands like Amul, Mother Dairy, Paras are not taken seriously definitely after few span of Time they can take much share of
PARAG. So PARAG should take seriously this matter. The supply of private milk product is not constant
FINDING OF RETAILER SURVEY
Amul is offering more incentives than Parag.
Amul has started to offer chilling equipments.
Most of the retailers associate themselves with Parag milk.
Parag products are sold more than others.
Retailer if provided more cooling equipment promises to stock more Parag products.
Retailers have problem of advertising material, schemes related material of Parag.
Retailers are more interested in products of those companies, which offers more margins to them.
FINDINGS OF ADVERTISEMENT •
Mainly Parag in Lucknow Lucknow is not making advertisement through.
•
Media of advertise.
•
Stickers, Bunting, dangles
•
Dealers brand.
•
Hoarding.
•
Glow sign.
•
Poster
•
Television Advertising
•
•
Newspaper and magazines Wall painting.
FINDING S OF PRICE Price is charged same as is charged by Amul, and rates are almost same everywhere except in cinema Halls, Restaurents, Railway stations and hostels where products are sold at higher price. Price ranges from Rs.12.50 per ½ litre & Rs.25 per litre. the Most of them vanish in the summers. But PARAG and Mother Dairy can compete future.
Limitations
Limitations Limitations of study and difficulties encountered:
Nothing in this universe is free from Limitations and present project is not an Acceptation to it. Due to certain restrictions on the part of potential customers as well as actual customers and Suppressed and based responses from them ,appropriate Figure for relevant data and their interpretation Precisely this has been my personal experience while Carrying out the present study. Some of the limitations I found and difficulties encountered can be enumerated as under: Annual reports and journals in the company was not readily available. Due to time and budgetary constraint ,the sample size was restricted. The salesmen at the outlets showed their discontent with the tight schedule. Most of the retail respondents showed their discontent with the company for its unsystematic distribution, replacement, short supply,incentives,margin and so they were reluctant to talk about the company.
People of the region were not conscious about the survey, so they were not much supportive.
Near about 30% population of the city takes the service of servants to bring their milk from market and reason for their brand selection was not known.
Many people do not know themselves why they use any particular brand as their answer was “we use ……brand because we like it” so the actual reason behind their liking was not confirmed.Many retailers do not like to interact because of their business. People are not interested to fill questionnaire as they think it wastage of time, this is again because of less scope of research in India
suggestion & Recommendatio n
Parag should change the packing of as it is not attractive and do not seems to be standard and hygienic.
Parag should make 24hour availability of milk In the market in order to improve their Sales.
Parag should offer home delivery services to Increase sales Parag milk should be kept available at every shop.
<<<<,
Parag should offer refrigerators On installments to retailers.
Parag should give emphasis on Punctuality and regularity in the Supply of milk.
Parag offer promotional schemes to retailers as is done by Amul.
Parag should offer some extra benefit to his customer and supplier.
Parag should provide chilling equipments to their retailers at low cost for storing their products.
Parag should give emphasis on Punctuality and regularity in the Supply of milk.
Parag offer promotional schemes to retailers as free sample, gift packs etc.
The organization should proper arrangement of milk at the time of festivals etc.
Parag should provide home delivery facility to their consumers.
Parag should launch some new products also.
Parag should emphasize on provide better quality than others instead of increasing the sale.
Parag should increase the number of retail shops, where the retail shops of parag is not available.
Parag should emphasize on advertisement also.
Conclusion
After detailed survey of Market I have reached to the following conclusions: -No doubt PARAG holds a Market share of 85% in case of milk in Lucknow. But at the same time
PARAG should not forget that AMUL is very old company and has created an image of trust and faith in the minds of people, and in the near future there could very strong competition between the two companies, keeping that in view I suggest PARAG to adopt following strategies to encounter AMUL sales: (1)
PARAG has to maintain quality of the milk and try to improve it.
(2)
The organization has to work in such a way so as to reduce the cost of milk
which inturn will result in reduction in price. (3)
Price should be reduced at least one rupee as compared to AMUL.
(4)
The packing of the product should be more attractive as compared to AMUL,
because during survey it was observed that packing attracts many customers. (5) (6)
The milk should be available for twenty-four hours.
PARAG should give their retailers Refrigerators on installments for which many of the retailers are ready to pay; many of retailers are not keeping refrigerators because of unavailability of refrigerators.
(7)
Possible to ensure 24hour milk availability in market, which not found in moat cases.
(8)
Steps should be taken to ensure 24hour availability of milk. (9)
At many locations there is unavailability of milk, retailers should be motivated
to work with parag. (10) Amul is using more advertising measures than parag; parag should also make use of advertisement. (11) Amul is offering verity of milk like tone milk, pasturised milk, milk powder and many (12) Other, parag should also offer more verities.
(13)
Sales promotional measures Should be taken to cover up retailers, because during survey it was observed that many customers use milk which is available at their nearest shop irrespective of brand.
(14)
The polybags used by parag are less attractive and many written things are invisible, as many customers complained that the polybags used by parag seems unstandard, unsecured and unhygenic.therefore parag should mostly change packaging of milk.
(15)
Parag should support their milk bags with customer care numbers to invite complaints, querries, questions and suggestions from customers as done by Amul.
(16)
Parag should also keep inviting complaints from retailers alsoAnd try to solve problems faced by them.
(17)
Parag should adopt the home delivery system, because during survey most of the Customers suggested for home delivery of milk.
Appendix
QUESTIONNAIRE USED IN MARKET SURVEY OF PARAG MILK
PLEASE ANSWER ALL QUESTIONS ASKED IN THE QUESTIONAAIRE AND SEEK FOR HELP IF ANY THING IS NOT CLEAR OR UNDERSTOOD TO YOU.
NAME OF CUSTOMER:
OCCUPATION:
______________________________________
ADDRESS:
______________________________________
MOBILE NUMBER:
______________________________________
No. OF FAMILY MEMBERS: 1 to 3,( )
3 to 5 ( )
MONTHLY INCOME: BELOW 5000 ( )
15000 to 20,000, ( )
20,000 to 50,000, ( )
, More than 5 ( )
MORE THAN 50,000 ( )
Q.no.1: Which brand of milk do you use? (a) Parag
( )
(b) Amul
( )
(c) Otheres
( )
Q.no.2: How do you know about Parag milk ? (a) Advertisement
( )
(b) Shopkeeper
( )
(c) Others
( )
Q.no.3: Quantity used by you (In liter) ? (a) 3 liters
( )
(b) 2 liters
( )
(c) 1+ liters
( )
(d) 1 liter
( )
Qno.4: Reason to choose a particular brand ? (a) Home Delivery
( )
(b) Eaisly Available
( )
(c) Price
( )
(d) Quality
( )
Q.no.5: Reason for using Parag ? (a) Quality
( )
(b) Price
( )
(c) Availability
( )
Q.no.6: Reason for not using Parag ? (a) High Price
( )
(b) Non Availability
( )
(c) Not regular supply
( )
(d) Bad Taste
( )
Q.no .7: How do you purchase milk ? (a)Yourself
( )
(b)Home Delivery
( )
Q.no.8: Response of customer about door delivery? (a) Yes
( )
(b) No
( )
Q.no.9: Response of you regarding extra charges to door delivery ? (a) Yes
( )
(b) No
( )
Q.no. 10: What type of parag milk do you use? (a) Standardized
( )
(b) Full cream
( )
(c) Toned Milk
( )
(d) Loose Milk
( )
Q.no.11: Change from one brand to another brand a) Yes
( )
b) No
( )
Q.no.12: Over all experience with Parag a) Excellence
( )
b) Good
( )
c) Fair
( )
d) Poor
( )
Q.no.13: Your suggestion with respect to Parag milk product?
…………………………………………………………………………… …………………………………………………………………………… …………………………………………………………………………… …………………………………………………………………………….
RETAILER SURVEY FORM
Name of the shop
___________________________
Address
___________________________
Tel. No.
___________________________
Q.no.1: What are the milks you usually keep in your shop? a) Parag b) Amul c) Mother Dairy d) Others
Q.no.2: Rate these milks in terms of volume of sales from 1 to 4. a) Amul b) Parag c) Mother Dairy d) Others
Q.no.3: Does packing play any role in promoting sales? a) Yes b) No
Q.no.4: How you sold the milk? a) At M.R.P. b) Less than M.R.P. c) More than M.R.P.
Q.no.5: How would you compare the services of Parag and Amul on the following? (Rank 1 to 4) Parag
Amul
a)
Frequency of visit of sales
____
____
b) Timely delivery
____
____
c)
____
____
____
__
personnel
Display support
d) Any other
Q.no.6: Customer purchase milk because of: a) Price b) Quality
c)
Availability
d) Others
Q.no.7: Behavior of Driver a) Good b) Excellent c) Bad d) Average
Q.no.8: Quality of Parag a) Good b) Excellent c) Bad d) Average
Q.no.9: Product delivery time a) Good
b) Bad
Q.no.10: Agent originally belongs to a) Parag b) Amul
Q.no.11: Margin on sales a) Yes b) No
Bibliography
BIBLIOGRAPHY/REFERENCES
BOOK REFERRED
1 : Collis J & Hussey R, Business Research (Palgrave,2003)
2: Beri G C -Marketing Research ( Tata McGraw-Hill ), 1993,2 nd Edition
