1305. sales & distribution of parag milk
TRANSCRIPT
A
RESEARCH REPORT
ON“SALES & DISTRIBUTION
OF PARAG MILK”
Report submitted In the partial fulfillment of the requirement of
MASTER IN BUSINESS ADMINISTRATION[UTTAR PREDESH TECHNICAL UNIVERSITY, LUCKNOW]
SESSION (2007- 2009)
SUBMITTED TO SUBMIITED BY
MBA DEPTT. RAJESH GOYALIEC College of Engg. & Technology MBA-4th Sem
R.N.0709070057
IEC COLLEGE OF ENGG. & TECHNOLOGYGREATER NOIDA
PREFACE
The success of any business entity solely depends on how effectively does it utilizes
its optimum resources and how soon does it make arrangements for the removal of
the customer’s grievances. Moreover, the company should always be ready to make
necessary changes according to the requirement in order to attract more customers
so as to maintain a substantial growth in the market. The topic given to me was:
“SALES & DISTRIBUTION OF PARAG MILK”
I have tried to put my best efforts to complete this task on the basis of skill that I
have achieved during my studies in the institute.
I have tried to put my maximum effort to get the accurate statistical data. If there is
any error or any mistake in collecting the data, please ignore it.
1
ACKNOWLEDGEMENT
One of the most pleasant aspects of writing an acknowledgement is the opportunity to thank
all those who have contributed to it. Unfortunately, the list of expression of gratitude- no
matter how extensive – is always incomplete and inadequate. This acknowledgement is no
exception.
First of all, I wish to express my sincere gratitude to Ms. Deepshikha Sharma (Faculty)
IEC College of Engg. & Technology, Greater Noida, for giving me opportunity to do
research under her profound guidance. Because of her inspiring guidance, motivation,
positive criticism, continuous encouragement and untiring supervision this work could be
brought to its present shape.
I would like to thank all of them who in one way or the other have helped me.
Rajesh Goyal
2
CONTENTS
CHAPTER-1
1.1 Executive summary 1.2 Introduction1.3 Introduction of Dairy Co-Operation1.3 Hypothesis objective1.4 company profile 1.5 Quality of Milk1.5 Introduction of Technology and Process1.5 Milk Testing1.5 Trade profile1.6 Introduction to problem1.7 Scope of project 1.8 SWOT analysis1.9 Limitation
CHAPTER- 2
2.1 Research methodology2.2 Source of Information2.3 Type of research2.4 Data collection instrument2.5 Field work procedure
CHAPTER- 3
3.1 Finding analysis & Recommendation
CHAPTER- 4
4.1 Summary/ Conclusion
CHAPTER- 5
5.1 Bibliography5.2 Appendix
3
DECLARATION
I, Rajesh Goyal, hereby declare that the Research report entitled “Sales and Distribution of
Parag Milk” being submitted to the U.P.T.U. for the fulfillment of the requirement for the
degree of Master of Business Administration is my own endeavor and it has not been
submitted any university or Institute earlier for any degree.
Date:
Place:
(Rajesh Goyal)
4
EXECUTIVE SUMMARY
Marketing is indeed an ancient art. It has been practiced in one form or other since the days
of Adam, and Eve. It emerges as a management discipline. However, is of relatively recent
origin. And within relatively this short Period, it has gained a great deal of importance. In
fact, today most Management thinkers and practitioners the world over, regard marketing as
the most important of all management function in any business.
Indian dairy is said to be emerging as sunrise industry. Milk industry became India’s number
one firm in terms of value of output since dairying in India is closely linked to agriculture,
Milk production is mostly based on the utilization of farm by product and crop- residues.
Because of this, the cost of milk production is much lower than any other industry.
Modern scientific processing technology and managerial innovation are opening up vast
opportunities in processing and marketing of various kinds of value added milk and milk
products like flavored milk, ice cream, and other delicacies. That’s why most of the
consumers are attracted toward milk product materials. Most of the consumers are attracting
packed milk because in this method there is no any adulteration comparison to loose milk.
Most of the consumers prefer full cream milk as very essential because in this milk, fat
percentage is very high. After that 2nd choice of consumers is DTM and the aged person and
patient type of consumers preferred skimmed milk .In this type of milk, fat is not present.
Most of the consumers purchase decision is based on quality of milk. “Time availability”
factor generally influence to the people for better services. In consumers opinion Mother
Dairy covers the maximum market share then comes PARAG dairy. Most of the dealers
think that if the quality of the milk is good then the sale will increase. Now Consumers are
attracted towards “flavored milk”.
5
The products marketing division is handling the marketing of Butter, Ghee, Skimmed milk,
Milk powder, Dairy whitener. Table butter is available in 100 gm &500 gm pack in the
market. Pure ghee is present in ½ kg and 1 kg polypack in the market. Other than in “U.P”
and “VARANASI” “Parag” product are also distributed in other state.
After “MOTHER DAIRY” “PARAG DAIRY” acquires 2nd position in terms of Quality,
Availability.
“PARAG DAIRY” plant of VARANASI is the first vertical dairy of Asia. Thus it is also the
most modern and automated dairy in North INDIA, where quality of milk processed and
packed is second to none. Parag is widely accepted brand name of dairy product in India.
According to me Parag Dairy has got a good position in the market.
6
INTRODUCTION
DAIRY SCENARIO IN INDIA
Indian dairy is said to be emerging as a sunrise industry. Milk production is estimated to
exceed 74 million tones in 1997 and with the present growth rate of 5 percent per year,
production is likely to touch in 1998, 86 million tones by the turn of the country, there by
taking India to the top position in milk Production surpassing the US.
In 1994-95, milk became India’s number one farm commodity in terms of value of output.
Out of every 100 liters of milk produced, 44 were retained by the rural folk, and 56 liters was
the marketable surplus for the urban areas. Out of this 56 liters, only 10 was handled by the
organized sector and the reaming 46 by the traditional sector. Which means there is still
scope for progress not just in terms quality and production but in distribution patterns.
About 70 million farmers are engaged in dairy activities. There are about 57 million cows and
39 million buffaloes and the strength of dairy economy is in its live stock of 270 millions,
the record in the world.
In live stock holding, India occupies the first position, accounting for 51 percent of the
world population 1,420 millions.
7
India’s dairy industry generates an annual business of Rs. 53,000 cores and is expected to
touch Rs. 88,000 cores by the turn off century. It’s highly skilled manpower pool is other
advantage.
The country has built up a strong base for education, research, extension and training in dairy
and veterinary science and manpower resources available here are much cheaper than other
countries.
Since dairying in India is closely linked to agriculture, milk production is mostly based on
the utilization of farm by products and crop residues.
Because of the cost of the milk production is much lower than the many developed countries,
modern scientific processing technology and managerial innovation are opening up vast
opportunities in processing and marketing of various kinds of value added milk product like
flavored milk, yogurt, ice-cream and other delicacies.
The emerging consumption patterns present new challenge for the dairy industry. The
strategy is now shifting from distribution to sales and marketing. Extreme perishability of
milk possibility of its contamination necessitates rapid movement of the product. The highly
decentralized natures of the production assets and lie then adequate development of physical
infrastructure make the desired speed of movement of milk difficult.
Indian dairy is multi layered shaped like a pyramid with the base Map of market for low cost
milk. The narrow tup at the top is small but there exists a great market for Western type
milk products.
8
Indian love to drink milk, hence no efforts are needed to make it acceptable its availability
is not a limitation either, because of simple production.
It leaves the vital marketing factor affordability. How to make milk affordable to the large
majority with limited purchasing power. This is essence of challenge.
A. Food service institutional market.
It is growing at the double rate of consumer market.
B. Defense market:
It is growing market for quality of product at reasonable prices.
C. Ingredient market:
A boom is forest in the market of dairy product based as raw material in
Pharmaceutical and allied industries India with their sizeable dairy industry groining rapidly
and on the path of modernization would have decades to come.
9
INTRODUCTION TO DAIRY CO-OPERATION
During the early 1920s military dairy farms were established for adequate supply of milk to
the army station.
Establishment of the imperial Indian council of agricultural research in 1929 and transfer of
the office if the imperial dairy expert and the institute at Bangalore to the central government
of India was on the right path of giving due importance to animal husbandry and dairying.
Subsequently N.C. Wright, Director, Dairy Research Institute Scotland, was invited to review
the progress of dairying in India.
His four-year stay (1936-1940) gave a remarkable impetus to dairy development. Even to
this day we realize the importance of D.R. Wright recommendation, which he made in his
report towards dairy development Imperial Dairy Research Institute (IDRI) in 1941.
Later on it was renamed as “Indian Dairy Research Institute” and regional stations subs
regional station equity as National Dairy Research Institute (NDRI) in 1955 with Regional
station.
Academic Training Programme and research in dairy technology and dairy husbandry were
accelerated under the director of dairy research, a top senior official position first held by
KOTHWALAOR THE DAIRY DEVELOPMENT advisor to the GOVERNMENT OF
INDIA in 1944.
10
The polson Dairy at ANAND bridged the gap between the market at Bombay and milk
products in Karia district by supplying pasteurized and chilled milk to Bombay milk scheme
and military cantonment in Bombay in 1943.
some of the points emphasized by him were:-
A. Lack of an organized milk industry in India and ready and remunerative market for milk
produced in rural areas.
B. In the absence of ready and assured market the chance of proper impact of development
input were very remote.
C. India has to develop its own technology and technologist to solve the problem of Dairy
industry.
D. Being a country of village, inhabited by marginal farmers and landless laborers.
Dairy development in India had to involve these wide spread rural pockets to promote dairy
development on co-operative lines. That was the only way towards tangible progress.
The farmers co-operative complex were established in Karia district at Anand in 1946 and
after independence the Arey milk colony and Amul set together a fast pace of dairy
development with emphasis on developing technique of processing and marketing, suitable to
Indian condition . Between 1948 and 1957 the Karia union expanded its working from 5
village societies to 9000 village societies. It was therefore inevitable that they attracted
growing attention of policy makers.
11
Toward the end of 1960 the lessons of the Gujarat dairy co-operative movement thus began
to gete incorporated in the official’s policy towards dairy development.
The government of India entrusted the NATIONAL DAIRYDEVELOPMENT BOARD
(NDDB) with the task of implementing operation flood which involved creation of Anand
pattern or Amul type unions in it districts of the country.
Development under flood programme (OFP)
Launching of OFP in 1970 was the first step taken towards milk production at the rural level
through the pattern of co-operative milk was efficiently procured and canalized to the
consumer in the far flung cities.
12
OPERATION FLOOD PHASE ONE (1970-81)
Phase -1, involving an investment of 95.4 crores, was formally launched on July 1, 1970.
This was the time the largest dairy development programmed was launched any where in the
world. The project was originally formulated for five years, but it suffered delays and was
therefore create on the foundation built by phase-1, a viable dairy industry to serve the nation
need for milk and milk product in 1980s. To achieve this, the programmed of work was set
out in two parts, July, 1978 to July 1979 was used to carry out the preprogram action
required prior to launching of phase –II
The originally of phase-11 project proposal with an outlays of rest 485.5 cores was finally
approved by the planning commission and the Government of India with revised targets and
outlay of Rs. 273 cores which was to be carried over to phase-III.
The phase-II was implemented during the 6th five year plan.
(1) Expansion of existing dairies in metropolitan cities.
(2) New dairies in 4 metropolitan cities.
(3) Milk collection / chilling centers.
(4) Storage and long distance transport of milk.
(5) Feeder / balancing dairy plants
(6) Co-operative organization.
(7) Project of skim milk powder and butter oil donated.
13
OPERATION FLOOD PHASE -11 (1981-85)
The success of phase-I clearly demonstrated the reliability of Anand and pattern in milk
sheds. Thus, phase-11 launch on October 11, 1979 was designed.
OPERATION FLOOD PHASE –III
Operation flood was a continuous programme. The phase-III during the 7th five year plan
period was for a period from April 1986 to March 1990, but the program was intended
further. The key physical target of phase-111 is as follows:-
(1)No of Anand co-operative societies.
(2) No of Anand pattern DCS under 25,000.
(3) Milk animals under co-operative ambit, lakh lpd 152.9
(4) Milk procurement peak, lakh lpd 183.3
(5) Build up of dairy capacity lakh lpd 200.0
(6)DCS membership, lakh 100.2
(7) Urban centers to be covered for marketing 200.
Thus Indian dairy industry is progressing well. The tremendous strides taken towards
modernization of dairy provided effective boost to indigenous, manufacture of dairy
equipment, veterinary medicines and vaccines and long distance transport vehicles for milk.
14
SOME UNIQUE FEATURES OF THE ORGANIZATION
Pradeshik co-operative Dairy federation LTD. is more than four decades old in the Indian
Dairy Industry. A quasi government organization in the co-operative sectors, it is the leading
organization in the dairy sector in the Northern India. PCDF-a cohesive body –successfully
does away with the exploitative force of yester years, the eventual middlemen, foregoing a
direct link between the producer and the ultimate consumer. To achieve this noble aim, a
three tier cooperative structure has been eve loved comprising of primary societies at the
village level, Milk union in the district and finally the main focal Apex Federation – the
PCDF at the State level.
World Bank aided prestigious operation programme in the state has been implemented by
PCDF in three phases beginning 1997 to the year 1995.
Nearly all the potential milk belts of the state were gradually covered in the three phases of
Operation Flood Programmed.
PCDF’s operation combine the basic guiding principle of Anand pattern Milk co-operative
with the business skill of today’s industrialized society.
Giving rise to an organization, which injects corporate skills and dynamic professionalism
into what, is traditionally a fundamental institution. The Rural milk co-operative draw their
inherent strength from the farmers’ committed participation. More than 5.5 lakhs rural milk
producer families of 10865-village level dairy co-operative reaffirm their faith by selling
surplus milk to PCDF.
OTHER PROGRAMMES
The federation’s unfailing reputation has won it the task of implementing various
development and promotional programmers sponsored by state/central government.
15
Due to reputation, efficiency and wide network with quality manpower, PCDF is currently
implementing following developmental and promotional programmers supported by
central /state govt.
integrated mini Dairy project (MIDP)
women Dairy project (WDP)
Capturing a dominant shares of the urban milk market, hitherto served by multitude of small
milk vendors, Creating a procurement network to link numerous co-operative producer
societies in different milk shed areas to the organized urban dairy industry, Upgrading the
milk production capacity of Indian bovine stock through a programme of cross-breeding,
veterinary services and auxiliary activities.
GENERAL IMPACT (O.F.PROGRAMME)
Real ground work in dairying has been done by the co-operatives.
Due awareness has been created in the minds of producer and urban of the state.
Co-operative have succeeded in the social and economical upliftment of women and
downtrodden in the rural society. Rural migration to the cities curtailed because of
continuous and sustainable employment generation at village level.
Rural Family Welfare Project (RFWP)
Uttar Pradesh Diversified Agriculture Support project (UPDASP)
The programmed achieved hitherto under this programme has own many laurels for PCDFC
adding further to its reputation.
16
ENCOURAGING RURAL PEOPLE IN DIRYING- A PRIORITY
Towards upliftment of rural poor, PCDFC has emerged as the leading institution in the state.
Small and marginal farmers and landless laborers have been able to participate in draying on
an appreciable scale only since the launching of various developmental programmers.
Darying is a labour intensive activity governed largely by availability of female labour;
hence rural women are also actively participating in dairy.
Through its consistent efforts PCDF has ensured that the rural women remains indispensable
parts of darying in the state.
MANAGEMENT ---The Force With in (Our forte)
The organization boasts of around more than three thousand employees that covers a whole
gamut of highly qualified and motivate professionals MBA’s, C.A.’s Engineers, Dairy
Technologist, Chemist, and vetinarians.
The staff has been trained for special function being performed by the Federation.
INFRASTRUCTURE (PLANT& MACHINERY)
The organization is equipped with sophisticated Plat & Machinery Ghee, Butter Milk
Powder, and other Dairy product on a big scale. The manufacturing capacity covers
approximately 37mt. Ghee, 30mt.Butter, and 55mt. Of Milk powder on per basis.
PCDF has also the distinction of having the post sophisticated and computerized first
vertical dairy in Varanasi. This is a state of Art project within its various sections located in
the basement and three floors of the building.
17
The total capacity available with the affiliated milk unions including the newly acquired
Parag Dairy, Varanasi 1530 TLPD. Besides the dairy plants various new projects have been
commissioned At Lucknow, Allah bad, Aligarh, and Kanpur as well.
Equipped central Quality control Laboratory based at Lucknow which Checks orgenolepetic
chemical and microbiological quality of the products.
MARKETING
The federation is marketing milk and milk products under a common brand name PARAG.
The total product range under the Parag Brand includes: - GHEE, Butter, SMP WMP Dairy
whitener, Flavored milk, Paneer, and Khoa.
The clientele include several prestigious institutions- U.P. and Varanasi besides the Indian
and the Fareast.
The turnover of the federation inclusive of the RMO’s and Cattle feed plants union is Rs
545.08 cores.
The global market for Indian Milk product is likely to brighten further in view of the GATT
agreement and PCDF is poised to emerge as an active player in foreseeable future.
EXISTING MARKET STRENGTHS
The field stiff is contacting more than 25000 retails outlets every morning and evening.
PCDF is serving more than 2 million consumers ever day by providing them by top quality
fresh milk. The consumers have faith in PARAG products and PCDF believe that a satisfied
customer is their best advertisement.
18
PCDF- SOME FACTS
PRADESHIK CO-OPERATIVE DAIRY FEDERATION LIMITED (PCDF)
Parent organization of PARAG Dairy, Varanasi .PCDF monitors and controls
The operation of around 13 dairy plants in U.P. PCDF has its head quarters in Lucknow
(U.P). PCDF is monitoring around 30 dairy co-operative union in U.P. PCDF has a capacity
of 1510 thousand liters of milk per day.
NUMBER OF CO-OPERATIVE:30
NUMBER OF DAIRY PLANTS: 13
CAPACITY: 1510 thousand liters
Pure Ghee Instant milk powder Paneer
Pasteurized Butter
White Butter
Instant milk mix
Milk Cake
Skim milk powder
19
OBJECTIVE
In Varanasi and NCR generally more than 70% of the dealers preferred MOTHER dairy Milk
because of easy availability, and better service and brand image.
The rest of the dealers preferred PARAG milk.
To find out the satisfaction of dealers with reference to delivery and collection
time of PARAG milk.
To find out the types of milk mostly preferred by the retail outlets.
To find out the user’s perception with reference to quality of milk supplied by
Parag dairy.
To find out the sources of information regarding the availability of Parag milk.
To find out the factors responsible for the growth in sales of branded milk in
NCR region.
20
COMPANY PROFILE
Parag Dairy
Establishment:
“Parag Dairy “Varanasi” is a project under the operation flood 111 scheme of the
Government of India. It has been executed by National dairy Development board (NDDB)
with a capital investment of Rs 50 cores, for Pradeshik co-operative dairy Federation
Limited, Lucknow.
Some Unique features of the dairy:-
Pradeshik co-operative Dairy Federation Ltd. is more than four decades old in the Indian
Dairy Industry. Aquasi government organization in the co-operative sector, it is the leading
organization in the dairy sector in the Northern India. PCDF- a cohesive body – successfully
does away with the exploitative force of yester years, the eventual middlemen, fore going a
direct link noble aim, a three tier co-operative structure has been evolved comprising of
societies at the village level, milk union in the districts & finally the main focal
Apex Federation—the PCDF at the state level. World Bank aided operation program in the
state has been implemented by PCDF in three phases beginning 1997 to the year 1995.
Nearly all the potential milk belts of the state were gradually covered in the three phases of
operation Flood programme.
21
BUSINESS AND MARKETING
STRATEGY OF THE COMPANY
Last year, we marketed products worth US $ 20 million. Parag is a house hold name for the
quality and price- anchorage. Our clientele include several prestigious organization of
Varanasi besides the Indian Army and Indian Air Lines. Our sales network is spread
throughout Indian.
The global market for Indian milk products is likely to brighten further in view of the latest
GATT agreement. At present we are successfully exporting our product to neighboring
countries.
22
PRODUCT OF THE COMPANY
Parag proudly present itself as a premium brand in the Indian Dairy industry. A list of
nutritious and premium quality product of parag include:-
Milk (Full cream and tonned)
Skimmed milk powder in bulk and consumer pack
Dairy whitener
Pure ghee
Table butter
White butter
Demineralised whey powder
Casein edible and industrial grade
Dahee
The taste, flavour and excellent quality of our SMP-ISI and pure ghee have made
them as the brand leader in the market.
In tune with the rapidly changing technology, production, units are well armed with the
latest equipment. These facilities enable to cater to the needs of clients of Parag by
selling over 2,50,000 liters of milk per day in Varanasi.
Wide network of Parag backed by a team of dedicated and skilled professionals is ready
on its tows to provide you fresh and nutrious dairy products. They always welcome all
clients’ queries and leave no stone unturned for client’s utmost satisfaction.
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BACKGROUND
Parag is in the business of milk for more than 50 years. Parag milk is entirely collected
from village level collection centers that are developed by Parag. The quality of Parag
milk, regularity of supply and value of commitment has made Parag as the hallmark in
our sphere of operation. Today Parag is the second largest distributors of milk in
Varanasi & U.P.
The taste and flavor , low sodium level , low ash , content and low plate count of
Parag dairy products has fetched as accolades of clients . Products of Parag have found
wide acceptance with countless prestigious institutions. It includes Nestle India Limited,
Smithkline Beechman, Hindustan Lever Limited, Mother dairy & thers.
24
CONSUMER BEHAVIOUR
Consumer behavior consists of human behavior that goes in marketing purpose decision. In
case of basis necessary things of life (food, cloth and house) a person not takes any rise and
wants to purchase best brand available in the market.
A person do not experiment with food products, he only purchase known brand or pre-used
brand. He switches over only in the condition of suggestion of friends and relatives.
A general behavior of people is to select the best option available in the market. But option
means that brand which he knows and that brand is best quality at fewer prices. But in the
case of food product a person do not main emphasize on price of thing, his main emphasis is
on quality. So in this case people want only best milk brand which they knew.
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QUALITY ASSURANCE
FROM PRODUCERS TO CONSUMER:
AN OVERVIEW
In the new millennium, the world is emerging as a new place with increasing challenges for
co-operative dairy industry to produce superior quality milk & milk products at a competitive
price. In this changed environment the testing of milk &milk products at a different stages of
handling, has become a necessity to ensure good quality & safe food for the consumers.
DEFINING QUALITY
Quality is an outcome of intelligent efforts and a strong will to produce superior and
safe food articles of internationally accepted standard
Customer satisfaction is at the focus of the latest international standards for quality
Quality as defined by the international organization for standardization is "the totality
of features and characteristics of a product and service that bears on its ability to satisfy
stated or implied needs”.
26
QUALITY OF MILK
1. Nutritional or compositional quality
Fat &SNF, protein Lactose, Minerals & vitamin Etc
2. Food Safety Quality
Contamination due to feed, medicines, fertilizers, environment etc. In the milk at upper
level.
Microbial quality, which is a function of general health of the cattle and milk handling
practices subsequent to milking
- The General hygiene of the farmers.
3. Sensory Quality
Off - flavour, smell/ flavour which consumer like/ dislikes.
27
FACTORS INFLUCING QUALITY
The quality of an food materials including milk &milk products is influenced by the manner
in which the raw material, producer, transporter, processing, post production handling,
storage consumer and regulatory environment interact each other.
Good processing and handling can only help to prevent or inhibit further deterioration in
quality but can not off -set the harmful effects of the deterioration in terms of toxins and
acids which have already been produced due to increased Bacterial Activity in the raw milk.
CONSTRAINTS IDENTIFIED IN ENSURING QUALITY
Portable water and drainage, approach road and electricity in DCS villages
Awareness among the farmers resulting in poor hygiene, sanitation & environment
condition
Inadequate microbial quality testing facilities in dairies
High ambient temperature, particularly in summer resulting in faster growth of
microorganism in the milk
Longer time of storage & transportation
Cold chain for raw and pasteurized milk.
Maintenance of equipments at dairy /cc like can washer,
can scrubber, flow diversion valve etc.
28
TYPICAL OBSERVATIONS
Mixing of "morning & evening milk"
Milking the animals in dirty surrounding with cow-dung & animal urine
"Storing the milk" in the house before supplying it to the society
Use of "Aluminum, plastic, GI Utensils" for making the animals and carrying the milk
to DCS
Addition of neutralizers, formalin and hydrogen peroxide in raw milk
Use of plastic jerry cans at DCS level for transportation of raw milk
Fat testing by Gerber method is carried out in most of the DCS
Lack of Farmers participation.
STRATEGY ADOPTED
Mass awareness campaign
- CMP awareness through village level meetings, booketlets, calendars & posters
- Organizing exhibitions/stalls at union/DCS level
- To provide technical support for hot water system, as vessels etc
- New technological supports
- Sanitization of cans at DCS level
Cooling of Milk at DCS level
- Introduction of BMC
- Reducing transportation time through rationalization of routes
Incentives to DCS for supplying good bacteriological quality milk.
29
INTRODUCING NEW TECHNOLOGIES
Automatic Milk Collection Stations (AMCS)
- It helped in bringing transparency at DCS level
- It has simplified the operational and day accounting activities
Bactaslyde
-Quick testing and easy to use technology for total bacterial load and coliform load
- It helps in creating awareness about bacteria among farmers, DCS
Adulteration Detection Kit
- There are two adulteration kits, small and large
-Small adulteration kit is used for 5 adulterants
- Large adulteration kit is used for 10 adulterants
30
PROCUREMENT PROCESS
In UP milk production is scattered with large-scale producers. A quick survey done in the
recent past reveals the fact that the average land holding is very small. The number of family
members is high as compared to the buffaloes that a family owns. The number of buffaloes is
less with 20%-50% dry or pregnant, thus the producer has to feed such animals that are not in
lactation.
The average milk yield per lactation of buffaloes is 300 days ranges between 900 kgs to
about 1500 kgs. Producers retain the 25% of the produced milk and rest of the 75% is
marketing surplus. Thus these quantity of surplus milk available with a producer ranges from
2 kgs-10 kgs per day. An adequate system of organizing milk procurement, quality control,
quick testing and chilling & transportation is required in most of the village.
Keeping this in view VRS Foods already organized about 500 village centers. Every center is
located in puce room owned by the company or hired locally and provided with a small
laboratory for conducting quick platform tests including fat%, SNF%, acidity test, COR, BR
and CNR on which payment is made. Company has also provided running water for the
cleaning of utensils, equipment and storage of milk.
During the flush season at each village 300 kg to 700 kg of milk is collected. As per the time
schedule, small size vans collect the milk and transport it quickly to the nearest chilling
center/dairy plant. In these plants milk is cooled to a temperature of less than 9 degree
centigrade to preserve its quality.
At certain centers facilities for the pre-cooling of milk is also available. It also avoids any
rise in acidity while storage and transportation.
31
Vedram & Sons
Milk ||Ghee||
ParagMilkSpray ||
InstantDairyMix ||Casein ||
Demineralised Whey Powder
VRS Foods
Ghee || Parag
Table Butter ||
Parag White
Butter
32
MILK TESTING
1. ORGANOLEPTIC EVALUATION
Check colour , taste and flavour of milk.
2. COB TEST:-
Take 2ml of milk in a dry test tube. Boil milk on flame of spirit lamp .Formation of ppts. in
the test tube indicate COB test positive.
3. ALCOHOL TEST :-
Take 5 ml in a test tube . Add 5 ml (60% by volume) alcohol with constant shake. Formation
of ppts. indicates alcohol test positive
4. TITRABLE ACIDITY TEST:-
Take 10 ml milk in 100 ml conical flask add 10 ml distilled water and 1 ml phenolphthalein
solutions titrate with N/10 NAOH till fant pinkish colour appears.
%TA = 0.09 X ml. of NAOH used.
5. NEUTRALIZER TEST:-
Take 2 ml milk rosalic acid (0.05% in 60 % alcohol), add 2 ml of milk .Rose red colour
indicate neutralizer test positive.
6. UREA TEST :-
Take 2 ml milk in test tube , add 2 ml DMAB solution and mix the contents. Appearance of
yellow colours indicates the urea test positive.
33
7. SUGAR TEST :-
Take 3 ml milk in a test tube, add 5 ml dilute HCL (1.2) containing 0.1% resorcinol. Mix
well and keep test tube in boiling water for 5 minutes. Brick red colour formation indicates
sugar test positive.
8. STARCH TEST :-
Take 3 ml milk in a test tube , boil and cool under tap water and add 2 drops of 1 % Iodine
solution. Appearance of blue colour indicates starch test positive.
9.HYPOCHLORITE TEST :-
Take 5 ml milk in test tube, add 1.5 ml of 7% potassium Iodide. Appearance of yelloish
brown colour indicates hypochlorite test positive. If solution is clear add 4 ml dilute HCL
(1.2) and heat the test tube at 85 degree centigrade for 1 minute. Cool and add 0.5 ml starch
solution. Appearance of blue or red colour indicates presence of bleaching powder.
10. FORMALIN TEST :-
Take5 ml milk in a test, add 0.5 ml of 1 % ferric chloride solution. mix well and conc.
sulphuric acid slowly along the side of tube. Formation of violet ring at juncture of two liquid
confirms formalin test positive.
11. HYDROGEN PEROXIDE TEST :-
Take 5 ml milk in a test tube and add 2 drop of para phenyl diamine hydrochloride (1%).
Formationof blue colour indicates hydrogen peroxide test positive.
34
12. B. R. TEST (40 DEGREE CENTIGRADE):-
Centrifuse the milk, take out cream plug & make ghee. Add a drop of clear fat on
Butyrorafractometer prism maintained at 40 degree centigrade . Reading should be in range
of 40- 43.If B.R reading taken at temperature other than 40 degree centigrade , apply the
following formula:
R = R1 +0.55 (T1-40)
R= B.R. reading at 40 degree centigrade
R1= Observed reading at T1
T1= Temperature degree centigrade at which B.R reading taken.
13. MINERAL OIL TEST :-
Take 22 ml alcoholic KOH solution (0.5N) in a flask, add 1 ml of clear FAT sample.
Saponify the FAT sample and add 25 ml boiling water along with the sides of flask. Keep on
shaking the flask . Turbidity indicates the presence of mineral oil.
14. MBR TEST :-
Take 10 ml milk in a sterilized tube, add 1 ml MBR dye solution plug with a sterilized cork
and invert the tube to mix contents and incubate in a water bath at 37 degree centigrade.
Check the tube for decolourisation first after 10 minutes, next after 30 minutes and
subsequently after every hour. MBRT is counted deleting initial 30 minutes of incubation.
15.PHOSPHATASE TEST:-
Take 1 ml milk in a sterilized test tube, add 5 ml phosphatase dye . Incubate at 37 degree
centigrade in a water bath. Observe the colour after 10 minutes, 30 minutes and finally after 2
hours. Yellow colour indicates the test positive perform control test also for comparision by
boiling of milk sample.
35
16. SALT TEST :-
Take 1 ml milk in a test tube , add 2 drop of 10 5 potassium chromate solution . The whole
solution turns canary yellow in colour. Now add 5 ml N/100 Silver nitrate and mix well .The
persistance of canary yellow colour as such show the positive salt test.
36
TRADE PROFILE
The Federation is marketing milk and milk products under a common brand name PARAG.
The total product range under the PARAG brand includes Ghee, Butter, Mattha, Flavored
Milk, and Curd, besides all type of liquid milk.
The sales network is spread throughout Northern India, and the Far East. Besides these the
Federation is marketing the following industrial units.
Cattle feed pacing material
Milk transport cans.
Plastic crates units
Milk testing equipments
Cheese plant
Ice-cream plant
37
INTRODUCTION TO THE PROBLEM
Retailers are the one of the most important member of the distribution channel. They are the
people who provides product to the final consumers. As they have the direct touch with the
consumers, so they can play a vital role for influencing the buyers decisions. The company
should try to provide services to the retailers in such a way that they can satisfy with them.
The basic objective of my study is to identify dealer’s need i.e. What types of milk is
generally they buy, Why are they buying different brands of milk, Important factors for
purchase decision of dealers, To find out whether the milk is supplied on time, Are they
satisfied with the delivery process of PARAG milk, How is the behaviors of the salesman,
Are there any shortcomings being faced by the drivers and the salesman in the delivery
process, Is there any defect in packaging etc.
38
SCOPE
The scope of study is to understand the problem faced by the company while increasing the
retail outlets. With the help of this project Varanasi Cooperative Milk Marketing Federation
Limited can increase their outlets by analyzing the feedback given by the interviewer
(including existing and non existing outlets). GCMMF can also analyze the pricing strategy
followed by the rivals. By this study company will get the information about current
competitive position of the parag milk in the market.
39
MANAGEMENT HIERARCHY
PCDF has 10 division every division has managers who are responsible of every division is
responsible to Managing Director.
The division heads of each division shall be responsible for the performance of their
respective division not only at the head office but also in the units- union in the field. These
officers are responsible for achieving fixed target and implementation of system for sorting
the problem of unions. All plans having ambition more than one year or those likely to have
an impact on other functional division well before approval implementation be routed
through management service division which will check the plan to see whether they are in
conformity with corporate objective.
The Managing of the organization is appointed by state Government. He/She is the IAS
officer. Earlier the posts of secretary, Managing Director of milk commissioner were
different, but these days M.D of the organization has the authority of all the three posts.
40
REGIONAL MARKETING OFFICE
Following are the six regional marketing offices:
1. MALDAHIA
2. RAMPUR
3. VARANASI
4. KAVI CHAURAHA
Through these offices marketing of PARAG have been monitored each of these office is
headed by Regional Manager (marketing) who has certain area of operation allocated to him
and has a warehouse located in that particular town. Product are transferred from the
manufacturing units under instruction from General Manager (Marketing) at the head office
to the respective ware house from where they are distributed either to stockiest or to the
clearing & forwarding agent. The regional manager is assisted in his marketing function by a
team of sale force. Entire marketing operation is monitored at the head office under the
supervision of the General Manager Marketing.
WORKING OF DIFFERENT DIVISIONS OF PCDF
ADMINISTRATION:
Administrative division has 4 sub divisions:
PERSONNEL
ADMINISTRATION
E.D.P
41
IN- CHARGE PUBLICATION
Personnel and administration division deals with welfare activities, promotion policies,
demotions, recruitments, transfer polices confidential reports, and other such activities.
Besides this they also make service under the guidance of Managing Director. There service
rules are made under the co-operative act.
E.D.P
The Electronic data processing has 2 divisions:
1. Data processing
2. System Management
In-charge Publication
This division carries out a news paper monthly by a name Dughdha Sahakarita. This gives
detail information about various technical inputs given to the society members. This
newspaper is circulated through various milk unions in the district.
FINANCE
1. Financial Management
2. Audit
3. Accounts
MATERIAL DIVISION
1. Centralized purchase and inventory control.
2. Milk procurement technical inputs.
Milk procurement and farmer’s organization
42
MARKETING
1. Liquid Milk Marketing
2. Milk product Marketing
1. Liquid Milk Marketing:
At present the liquid milk has been brand name PARAG is being distributed through local
units or milk in major cities.
ENGINEERING
This division has two sub divisions:
1. Project Engineering
2. Maintenance Engineering
RESEARCH AND DEVELOPMENT
1. Market Research
2. Product Research
PRODUCTS LINE OF PARAG DAIRY
Parag Dairy has a good product line of milk and milk products. It has introduced a number of
milk products in order to cater to the needs and demands of current and prospective
customers.
The dairy has launched variants of products in order to meet the requirements of all sections
of consumers.
43
TYPE OF MILK SPECIAL FEATURES SUITABLE FOR
Parag Gold (full cream m
Milk)
High fat, creamy Growing children, youth,
and sportsmen
Parag Toned (Toned
Milk)
Medium fat,
Reasonable price
All purpose milk
MARKETING COMMUNICATION IN RURAL MARKETS
Marketing communication and promotion too possess problems in rural markets. There are
many constraints in maintaining the profile of the audience and availability of the media.
The literacy rate among the rural consumers being low, in addition to the level of literacy,
the tradition bound nature of rural people. Their cultural barriers and taboos and their overall
economic backwardness add to the difficulty of communication task. It has been estimated
that all organized media put together can reach only 30% of the rural population of India; TV
is an ideal medium for communicating with the rural masses. But it reaches in the rural areas
are limited even today. As regards the print media the circulation is limited. It has been
estimated that 33% of the total cinema earnings in the country comes from the rural India.
Rural communication to be effective repeat exposure is a must and if the gap between the
exposures is long the message looses during this period.
44
In short the crux of marketing communication in the rural context is one of finding a media
mix that will deliver the required message in a cost effective manner to target an audience
that is predominantly illiterates.
OVERCOMING THE CONSTRAINTS AND MANAGING THE COMMUNICATION
TASK:
A company that seeks a long term in rural market has to squarely encounter these constraints
and find a way of communicating effectively with the rural target audience.
Selecting the media mix
Evidently, in the rural context the firm has to choose a combination of formal and non – formal
media. The possibilities are indicated below:
Media mix in the rural context
Formal and organized media
TV
Cinema
Press
Other print media
Direct mail
Radio
Outdoors
45
NON-FORMAL/ RURAL SPECIFIC MEDIA
Information centre of company’s product
Music records
Study classes
Demonstration
House to house campaigning by special promotion required.
Audio visual vans or publicity vans.
The formal organized media
T.V: With the increase in coverage and the increase in TV ownership in the rural areas TV
has the potential to become the primary medium for rural communication. Studies have
shown that 77% of the village in India now TV in potency and effectiveness.
CINEMA: - The cinema is a useful medium in the rural context. Most India villages have
one or more cinema halls and 29% of all rural people view cinema as a member of regular
lifestyle and habits.
0UTDOORS:-- Outdoors also lend itself well to rural communication. Infact presently many
companies are using the outdoor hoardings and wall painting etc.
THE NON – FORMAL/ RURAL SPECIFIC MEDIA
Audio visual publicity vans. The AV unit or the publicity van is very useful for rural
communication. The van is a comprehensive mobile promotion at the exclusive command of
the concerned firms. Naturally the AV vans are quite popular with rural marketing firms.
Practically all the firms in the agric. Input business have their own AV vans all over their
respective marketing territories. Phillips India has very successfully used the AV vans for
popularizing their radios in the rural market.
46
COMPARISION WITH OTHER BUSINESS
In view of specific individual needs preference and requirements of various types of milk
with different special qualities have been developed in PARAG Dairy Company.
TYPES OF MILK
PARAG TONNED MILK
PARAG DOUBLE TONNED MILK
PARAG SKIMMED MILK
PARAG FULL CREAM MILK
SPECIAL FEATURES
High fat , creamy
Medium in fat content , reasonable price
Medium in fat content , more economical price
Fat free milk, very economical price
SUITABLE FOR
Growing children, youth, and sportsmen
All purpose milk
Adult and weight conscious people
Heart patients, diabetics etc.
47
GOVERNMENT POLICES IS RELATED TO THE BUSINESS
Government is taking instruct in business because milk is using for human hea. And every
country wants their people should take milk regularly. Generally milk is basic food for
people. For growing child aged person and every common people be whole group of
member totally depend upon milk. Therefore it is fulfilled our basic needs. So in this reason
government could not adopt tax on milk. That is why its becomes very normal. Every
category people can be buying milk different branded And different types of milk is
DTM,FCM,AND SKIMMED MILK etc.
Government can also has been adopting to maintain milk quality that’s why (23 quality test
every day testing and checking milk in company).
Due to its reputation PCDF is currently implementing following development and promotion
programmes supported by Central/state government project dairy project, rural family
welfare project, Uttar Pradesh Diversified Agriculture support project. Besides this
government also helps rural people to given loans for dairy purpose.
Generally these facilities are given government in that people those small and marginal
farmers and landless labour and government also encourage rural Women and actively
participating dairying.
48
TAX ASPECT
Sale tax is paid on milk product to government. There is nothing but in transportation Mandi
Tax is paid of 7% for ghee. There is no tax particularly in milk from one place to another but
in milk product government has adopted some tax.
49
SWOT ANALYSIS OF PARAG DAIRY
STRENGTHS
ORGANIZATIONAL
PRODUCTION
FINANCE
MARKETING
Advantage of being first vertical dairy
in Asia
Most hygienic &computerized dairy.
Proper & adequate Infrastructure.
Authority & responsibility clearly defined.
Functional organization.
Computerized & automated operation.
Best quality products (23 quality checks)
Comparable quality products.
Funded by Govt. of U.P &Varanasi
Adequate own funds
Overall satisfactory financial position
Number 1 brand in Varanasi
50
PERSONNEL
Reasonable in price
Good distribution network
Highly qualified & motivated staff.
Responsibility of staff clearly defined
Staff aware on the objective set by top mgt.
WEAKNESSES
Run and owned by govt.
Low brand awareness in national Capital region.
Less advertising and promotional expenditure.
Low brand equity.
Very average distribution.
Weak position in the mind of customer.
Lack of professionalism in sales force.
51
OPPORTUNITIES
Growing awareness among consumers regarding nutritional value of milk products.
Health positioning of brand because of growing concern among consumers regarding
health.
Appropriate time to venture into production and marketing of UHT milk, to serve
milk, ice creams.
THREATS
PARAG as a brand, being threatened by the major presence of Mother Dairy.
Less advertising and promotional expenditure are currently negatively affecting and
shall do more harm in long run to the profitability of company.
Lack of professionalism sucking the life blood of organization.
Lack of good distribution network threatens the very survival of company as well as the brand PARAG.
52
LIMITATION OF THE PROJECT
1. Some people don’t give the remarkable answer, so the surveyor has to make his own
assumption
2. Since the survey has been conducted in Varanasi, being so big market it might not give
true picture.
3. The questionnaire was too long and many a times respondents used to refuse to fill the
questionnaire as they considered it to be time consuming.
4. The time period allotted for the study was limited as it had to be completed with this
stipulated period of time.
5. The number of respondent covered in the study is limited. Although all efforts has been
taken to make this study a representative of total market of Varanasi, the sample size is too
small so that data are not reliable. Most of the customer were busy in their work and saying
“sorry I don’t have time” .So it was very difficult to access information from those people.
6. The respondents were unable to read exact data spontaneously.
It is very difficult to catch the exact word of customers through questionnaire
53
METHODOIOGY
In marketing project the accuracy and authenticity of the obtained data depends upon the
partial skill which is exercised in preparing the project and selecting the most effective
technique of data collection.
TYPE OF RESEARCH DESIGN:
(1) Exploratory research
(2) Conclusive research
(3) Descriptive research
(4) Causal relationship
ANALYSIS & INTERPRETATION OF DATA
After collection of data, next task of research process is analysis and interpretation of data.
Questionnaire is processed and edited to make sure that all question are answered. He
resulting data should be logical and consistent. After editing, data are tabulated and analyzed.
Data analysis includes the statistical test which may be editing, coding, tabulation,
interpretation. Coding is the assignment of numbers to the observation so that data can be
analyzed, whereas tabulation refers to classification and cross classification of observed data.
The above things are common in all type of market research project. Statistical tests are
applied to certain such research where data are complex and casual relation is to be
established.
Statistical tests are useful to describe the data at hand, test hypothesis and make predictions
or estimates. Descriptive analysis is use to reduce data at hand to a smaller set of number of
summary measure represent information.
54
SAMPLING
According to a famous statistician “YULE’ the objective of sampling is to get maximum
information about parent population with minimum effort.
Probability sampling
1. Simple random sampling
2. Systematic sampling
3. Stratified sampling
4. Area sampling
Non- Probability sampling
1. Convenience sampling
2. Quota sampling
3. Judgment sampling
4. Panel sampling
Sampling unit
Sampling unit 100 retails outlets.
SAMPLING PROCESS
Two general’s classes of methods exist for selecting samples.
These are probability methods and non- probability methods
55
PROBABILITY SAMPLING METHODS:-
Probability sampling methods are those in which every item in the universe has a known
chance, or probability of being chosen for the sample. This implies that the selection of
samples items is independent the controlled objectively so that items will be chosen strictly
at random.
RESEARCH DESIGN OF PROJECT
A preliminary study of customers/ viewer’s user satisfaction was done by the method of
research. For this purpose structured and non -disguised questionnaire was prepared and
administered to various customers in different market segments like government houses,
corporate house and various other individuals.
56
SOURCE OF INFORMATION:
Primary sources
Personal survey conducted with carports manager and other government’s officials.
QUESTIONNAIRE METHODS
The greatest advantage of the questionnaire methods is its versatility. Almost every problem
in marketing research can be studied only questioning. Questioning is usually faster and
cheaper than observing. As a result, less time is typically wasted in questionnaire study.
STRUCTURED NON DIS GUISED QUESTIONNAIRE:-
Most questionnaire studies made in marketing research are of this type. A structure interview
of this type introduced more reliable result. The purpose of the question is clear and thus
undisguised. It is simple to administer and easy to tabulate and analyze. This questionnaire
has also got the provision of the analyses. This questionnaire has also got the provision of the
analyses. This questionnaire has also got the provision go the alternative responses, which
helps makes clear the question.
NON-STRUCTURED NON-DISGUISED QUESTIONNAIRE
Unstructured and undisguised questionnaire is distinguished by the fact that the purpose if
the study is clear, but the response is the question is open –ended. The initials stimulus here
is constant. With is the interviewer attempts to get the subject to talk freely about their
attitudes towards movie channels/ services.
57
NON – STRUCTURED DISGUISED QUESTIONNAIRE
Many people are either unwillingly or unable to give accurate report as to their own attitudes
and motivations. To overcome this disguised methods are designed so that the respondents so
not know what the objectives of the study are such disguised methods may also be
unstructured. Projective technique is its type.
58
SOURCE OF INFORMATION
Major sources of information for this project are customer scattered various area of
Varanasi. It was very difficult to gather the information from some of them as they were in
hurry and not willing to give the information related with the topic and sometimes not ready
to fill the questionnaire. They thought it was not beneficial for them and was just wastage of
time. But I would try to my best and make ready to fill the questionnaire told them that it is
also profitable for them.
Maximum customers gave very good response in filling questionnaire also provide extra
information related to topic .So that I have prepared this report
IDEAL MARKETING STRATEGIES FOR COMPANIES
1. Decrease in price
2. Improvement in quality of product
3. Better technology
4. Emphasis on advertising
5. Proper after sale service
6. More distributors.
7. Delivery regularly
8. Delivery timely
9. Proper market research.
59
The following major products marketed by company are as follows
Pure milk ghee
1.Name of the Product:
2.Regular packing:
3.Usage:
4.Ingredients:
5.Composition:
6.Quality standards:
7.Special Features:
8. Product Specification
9.Shelf life:
Parag pure Ghee
500gms.,1kg.,2kg.,15kg
Ideal for cooking, baking, garnishing and sweet making.
Milk fat
Milk fat 99%Moisture 0.3%Calorie value 900 calorie per 100 g.
Acidity (0%Olcic Acid) 1% max. Baudoin Test (-) ve.
Made from fresh cream, has a typical rich aroma and granular texture and ethnic product.
Meets AGMARK special grade
Tin pack: 1yearPoly pack: ½ year
60
Table Butter:
Name of the product PARAG PASTEURIZED BUTTER
Regular packing 100 gms.500gms. Duplex board carton,
400 gms tin pack.
Usage As table butter on toast, chapatti, in baking and Cooking
Ingredient Butter,salt,Annatocolour
Composition Milk fat 80% min., Moisture 16% max.,salt 2.5%, Curd 0.8%, calorific value: 720 calorie per 100 gms.
Micro-bio Standards Coli forms per ml.500 max.Yeast and Mold –count 20 max.
Special features Made from fresh cream by hygienic method
Product Specifications Meets AGMARK Standards
Shelf Life 9 months at -10 degree to -12 degree c
Carton Size 20kgs. =305*305*286 mm 15 kgs. If 100 and 500 gms
61
Name of the product
Regular packing
Usage
Ingredient
Composition
Special features
Product specifications
Shelf life
Cartoon size
PARAG SKIMMED MILK POWDER
200 gms. Bag in Box
500 gms. Big in Box
200 gms. Poly Jar
500 gms. Poly Jar
Ideal for making tea, coffee, sweet
Milk SNF, Moisture
Milk Fat : 1.25 Max
Protein : 35% ; Carbohydrate : 52%Mineral 7 %; Moisture 3. 5 % ; Calorific value :350 c/100 GMS.It has excellent natural dispensability
Meets ADPI extra grade and BIS extra grade
11/2 Years
500*30 =15 kg.
200*90 = 18 kg.
62
DAIRY WHITENER
Name of the product
Regular packing
UsageIngredient
Composition
Special features
Product specifications
PARAG SURUCHI INSTANT MIX
500 gm. And 10 kg. tin200 gm.And 500 gm. Bag in BoxIdeal for making tea, coffeePartially skimmed milk and sugar
Milk fat 19 % milk Protein 23 %,Carbohydrates 51 %, Lactose 34 %, Sugar 17 % , Minerals 5 %, Moisture 3 %Packed under nitrogen , and has excellent naturalDispensabilityMeets BIS specifications for sweet and milk powder
63
TYPE OF RESEARCH
My research project is quantitative and qualitative both because the question was both type the
variables are easily measurable in some question but in other question response are not easily
measurable .So I divided all the responses in some variable and then collect the data with the
help of this questionnaire and after that analyze the data which comes from the research.
Qualitative research is specially important in the behavioral science where the
aim is to discover the underlying motives of human behavior. Through such research we can
analyze the variables in a particular manner or which make people like or dislike a particular
things.
Route Number 2-1
Delivery Van Number HR 38E 7974
Number of Stops by the Van 14
Sales man Divendu Dhama
Chart
Properties Consumption of various milk categories (in carates)
Dealer Name Location FCM T.M DTM SKM
Lal Babu KhodaColony
5 - 2 -
Harish store Jagat puri 1 - 1 -
Arivind store Jagat puri 3 - - -
Singhal store Jagat puri 66 - - 1
Sharma store Karkarduma 7 - 3 3
64
modManoj store Biswas Nagar 7 - -2 -
Kanu store BiswasNagar
12 - - -
Kusum store Bihari colony 3 - - 1
Vijay store Bihari colony 2 - - -
Aarti store Bihari colony 26 1 1 -
Deepak store Biswas Nagar 6 - - -
Sunil store Biswas Nagar 5 - 4 -
J K store BiswasNagar
7 - - -
Baba store Biswas Nagar 4 - - -
-
Route Number 1-2
Delivery Van Number UP 14 B 2437
Number of Stops by the Van 10
Sales man Pappu
Chart
Properties Consumption of various milk categories (in Carates)
Dealers name Location FCM TM DTM SKM
Bahadur store Ashok Nagar 32 2 4 -
-Gautam store Sec.6 Varanasi
11 3 3 -
Kapil store Sec.5 Varanasi
23 4 3 -
Kailash store Sec.8 Varanasi
30 3 2 -
Sanjay store Sec.8 4 2 1 2
65
VaranasiSaschin store Sec.8
Varanasi6 1 5 -
Tiwari store Sec.8 Varanasi
7 2 3 1
Sharma store Sec.8 Varanasi
8 3 2 -
Devi lal store Sec.8 Varanasi
8 4 1 -
Dhulichand store Sec.11 Varanasi
6 5 5 -
Tundu store Sec.15A Varanasi
9 6 3 -
Route Number 2-5
Delivery Van Number DL 1L C 5002
Number of Stops by the Van 22
Sales man Rajinder Singh
Chart
Properties Consumption of various milk categories (in Carates)
Dealers name Location FCM TM DTM SKM
New fine bakery Selampur 2 2 3 -
Suresh store Maujpur 3 3 5 -
Chaudary store Maujpur 34 4 4 -
Radhaswami store Yamuna Vihar 2 5 6 -
Arpit Bakery Yamuna Vihar 23 6 - -
Bist store Yamuna Vihar 24 7 - -
Bansal store Yamuna Vihar 34 8 - -
Gupta store Yamuna Vihar 12 9 - -
66
Jain store Yamuna Vihar 26 1 9 -
Tanu store Yamuna Vihar 15 - - -
Dev Raj store Yamuna Vihar 18 5 6 -
Fauji store Yamuna Vihar 20 6 - -
Master store Khajuri 34 7 - -
Sarder store Khajuri 5 8 - -
Mahipal store Bhajanpura 7 2 - -
Pappu store Bhajanpura 44 1 - -
Shyam store Bhajanpura 4 3 6 -
Chhabra store Bhajanpura 3 4 - -
Chaumali store Bhajanpura 2 5 - -
Bara Bhani store Bhajanpura 1 7 5 -
Guruji store Bhajanpura 6 5 4 -
Route Number 2-7
Delivery Van Number DL 1LD 4226
Number of Stops by the Van 14
Sales man Karan Singh
Chart
Properties Consumption of various milk categories (in carates)
Dealer Name Location FCM T.M DTM SKM
Ram Veer Tisrapusta 23 2 1 -
Shyam store Sudamapuri 58 1 2 -
67
Bachcha ram store Sudamapuri 34 - - -
Ashok store Arvind Nagar 100 - - -
Haridutt store Arvind Nagar 45 - - -
Krishna store Bhagpura 23 - 3 -
Vinod store Dayalpur 21 - 4 -
Rakesh store Munshi market 33 - 3 -
Maheshwari store Karol Nagar 23 - 2 -
Bharat store Mustakabad 3 - 2 -
Praveen store Mustakabad 4 - - -
Subhas store Mustakabad 42 - - -
Hasan Store Mustakabad 3 - - -
R K store Mustakabad 6 - - -
-
Route Number 7-3
Delivery Van Number DL 1L D 6451
Number of Stops by the Van 22
Sales man Raj Kumar
68
ChartProperties Consumption of various milk
categories (in Carates)Dealers name Location FCM TM DTM SKM
Avadhesh store ITO 3 2 - -
Ramesh store Rajghat 5 4 - -
Bhim store Rajghat 6 - - 1
Rattan store Varanasi Gate 4 - - -
Neelam store Varanasi gate 8 - - -
Babli store Sadar Bazar 2 - - -
Sajeev store Sadar Bazar 5 - - -
Sahmim store Sadar Bazar 4 - - -
Mehtab store Sadar Bazar 6 6 - -
Man Singh store Pandav Nagar 7 - - -
Praveen stoe Pandav Nagar 8 - - -
Bharat store Modi Nagar 8 - - -
Master store Punjabi Bagh 3 3 - -
Vicky store Punjabi Bagh 12 - 1 -
Umesh store Punjabi Bagh 5 - 2 -
Ashwini store Punjabi Bagh 23 - 2 -
Sanjay store Saraswati Vihar 4 3- - -
Rajasthan store Saraswati Vihar 7 - - -
Rajeev store Saraswati Vihar 4 2 - -
Krishna store Karol Bagh 6 - - -
69
Shribhagwan store Sadar Bazar 7 - - -
--
Route Number 1-4
Delivery Van Number DL 1LE 0110
Number of Stops by the Van 10
Sales man Raj Singh
ChartProperties Consumption of various milk
categories (in carates)Dealer Name Location FCM T.M DTM SKM
Ravi store Nangla 1 - 32 -
Nanda store Nangla 2 2 12 -
Naseer store Bhangel 5 6 10 -
Top foods Bhangel 8 3 - -
Kapil store Phase –2 2 - 4 -
Akshay store Phase –2 2 - 2 -
Thompson press Phase –2 1 - 4 -
Rekha Kirana store Supiana 3 - - -
Pepsi Greater Varanasi - - - -
Varanasi Authority
Greater Varanasi - - - -
-
70
TOOL AND TECHNIQUES
Tools and techniques which used in this project are:-
Measuring scales:-
Nominal scale
Graphics rating scale
Marketing research tools
Survey
Questionnaire
Statistical tools
Bar diagram
Pie chart
71
DATA ANALYSIS OF VARIOUS CUSTOMERS OPINIONS
Q. What type of milk you generally use?
Milk powder
Pasteurized milk
Non Pasteurized milk
Table 1
Milk powder Pasteurized
milk
Non Pasteurized milk
8 80 12
72
Findings: It was found that most of the consumers prefer to buy Pasteurized
milk.
Q. What brand do you prefer most?
Parag
Mother dairy
Amul
Gopal Jee
Any Other
Table 2
Parag Mother dairy Amul Gopal Jee Any Other
20 40 20 12 8
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Findings: Mother dairy got the highest rank i.e. 32% preference than comes Paras with
20%.
Q. Are you satisfied with milk you consume?
Yes
No
Table 3
Yes No
60 40
Findings: Most of the consumers is satisfied to Parag milk.
74
Q. What type of milk you used?
Full cream milk
Toned milk
Double Toned milk
Skimmed milk
Table 4
FCM TM DTM SKM
36 24 28 12
75
Findings: It was found that most of the customer preferred to buy full cream milk or
DTM
Q. On what basis you choose milk for consumption?
Price
Quality
Availability
Packaging
Consumer Awaraness
Brand Image
Table 4
Price Quality Availability Packaging Consumer
awaraness
Brand
Image
8 44 16 4 8 20
76
Findings: Most of the customers buy milk on the quality basis.
77
Q. Do you get the proper quantity of milk from the dealer, when you need
(Timely)?
Yes
No
Table 5
Yes No
80 20
Findings: Most of the consumers get milk from the dealer timely.
78
Q. How do you come to know about Parag milk?
News paper
Friends
From the nearest shopkeeper
Any other
Table 6
Newspaper Friends From the nearest
shopkeeper
Any other
28 12 40 20
Findings: It was found that the maximum number of consumers came to know about
Parag milk from the nearest shopkeepers.
79
Q. Do you want Parag milk in loose (without packet)?
Yes
No
Table 8
Yes No
16 84
Findings: It was found that about 84% customers were not interested in taking milk in
loose.
Q. What type of packaging you prefer?
Half liter
80
One liter
Table 9
Half liter One liter
72 28
Findings: It was found that about 72% customers purchase half litre milk.
Q. Do you know about pasteurized milk and its effectiveness?
Yes
No
81
Table 10
Yes No
84 16
Findings: It was found that about 84% of the regular customers were aware of the
pasteurized milk and its effectiveness.
Q. Do you know about quality control process used by different dairy firms?
82
Yes
No
Table 11
Yes No
64 36
Findings: From the survey it was found that 64% of the customers were aware of the
Quality Control Process used by different dairy firms.
Q. DO you know that Parag milk is not only pasteurized but also clarified?
Yes
No
83
Table 12
Yes No
60 40
Findings: From the survey it was found that 60% of the customers were aware that
Parag milk is not only pasteurized but also clarified.
Q. What is your option about the quality of Parag milk?
Excellent
Good
84
Average
Below Average
Table 13
Excellent Good Average Below Average
44 24 16 16
Finding: Most of the customer says Parag milk is excellent.
DATA ANALYSIS OF VARIOUS RETAILERS OPINIONS
85
Q. Which are the brands of milk you sell?
Mother dairy
Parag
Amul
Gopal Jee
Paras
Any other
Table 13
Mother dairy Parag Amul Gopal Jee Paras Any Other
10 16 20 8 8 4
Findings: It was found that most of the retailers sold Mother dairy then Parag &
Amul.
86
Q. Why you prefer that particular brand?
High demand
High profit
Easily available in time
Good quality
87
Table 14
High Demand High Profit Easy available in time Good Quality
40 20 16 24
Findings: It was found that most of the retailers sold On the basis of high demand.
Q. What is the most important factor when purchasing milk from company
distributor/salesman?
Credit
Margin
Consumer scheme
Quality
Brand name
88
Consumer preference
Table 15
Credit Margin Consumer Scheme Quality Brand Name Consumer
Preference
16 20 8 28 16 12
Findings: : It was found that most of the retailers sold On the basis of Quality.
Q. What type of milk generally you buy more?
89
FCM
DTM
SKM
TM
Table 16
FCM DTM SKM TM
10 6 4 5
Findings: FCM has highest range of selling among the customer.
90
Q. Whether you get the supply of Parag milk in proper quantity or not?
Yes
No
Table 17
Yes No
68 32
Findings: It was found that most of the retailer get supply in proper time.
91
Q. How is the behavior of the salesman of parag milk?
Good
Bad
Normal
Table 18
Good Bad Normal
11 8 6
Findings: It was found that most of the salesman behavior is good?
Q. Are there any short coming being face by the driver and the sales man in the
delivery process of parag milk?
92
Yes
No
Can’t say
Table 19
Yes No Can’t say
56 24 20
Finding : Yes most people fullfill the shortage of parag milk by salesman.
Q. Is there regular defect in the packaging of parag milk?
Yes
No
93
Need to be improved
Table 20
Yes No Need to be improved
22 73 5
Finding : Yes the most people are saying regular defect of parag milk.
Q. Which type of milk consumers prefer most?
Full cream milk
Toned milk
Double toned milk
94
Skimmed milk
Table 21
Full cream milk Toned milk Double toned milk Skimmed milk
56 9 30 5
Finding : most people are used full cream milk.
OPINION SURVEY
95
Survey is the systematic gathering of data from the respondent through questionnaire. There
is various technique of survey, which can be employed. They are: -
Personal interviews
Telephonic interviews
Mail questionnaire.
In this project survey is personal interview type. In it the investigators question the
respondents face to face. The usual approach for the interview is to identify himself to the
potential respondent and attempt to secure the respondent co-operation in answering a list of
predetermined questions.
Advantage of survey:-
The advantage associated with the survey technique are:-
1. It takes relatively short period of time to complete.
2. Research can be produce many difficult type of information.
3. The amount of information procured on each aspect is larger.
Disadvantage of survey:
Major disadvantage associated with the survey technique are:-
1. The cost per completed interview is relatively highly as compared to other method
2. The investigator may have to face relatively more difficulties in administrating the
interview schedule.
3. Time required is more as compared to other survey method.
Reasons of selection of survey technique:-
There are several factors, which need to be evaluated for selection of the most suitable
technique. These factor are:-
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Cost
Time
Accuracy
Amount of data gathered
Response rate
Flexibility
Control
National
Parag is the second largest distributor of milk in Varanasi and catering to its customers
since the last fifty years. We are looking forward to reliable business partners including
dealers and collaborators for effective business. We operate in close association with the
97
dairy experts and continuously upgrade the quality of our products.
International
India offers countless opportunities in the field of dairy industry, which is still flourishing.
Encouraged by the success in the domestic market, Parag is expanding the horizon of its
business and looking forward to the importers and foreign buyers for its dairy and industrial
products. products.
PARAG group enjoys the services of a state-of -the-art production unit for the manufacturing
of acid casein and dematerialized whey powder. Its leading position in the domestic market
will give us an edge over the
others.
Functional application
Casein :
International quality edible casein
1. For Nutraceutical, Health foods, Dietetic and Infant Food Application.
2. For conversion into Caseinates, hydrolysis’s.
3. For Medical Nutrition and Geriatric Foods.
4. For Lactose free food formulations.
5. For Sports foods and Weight Management formulas.
6. For Meat Products, Baked goods applications.
7. For Leather chemicals, Paper chemicals, Media preparations etc.
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8. Parag Acid Casein finds a ready market in Germany and also caters to the domestic
market.
Whey and Whey products :
Whey Powder Dematerialized 90%
1. For Infant Food formulae, closest to the mother's milk.
2. For Life style and Dietetic food formulations etc.
Whey Powder Dematerialized 70%
1. Cost effective substitute to SMP for Bakery, Confectionery and Ice cream
applications.
2. Excellent bulking agent for soup, Sauces and Salad Dressings.
For Dairy mixes, Coffee Whitener, Frozen Desserts Spice and Seasoning blends, etc.
99
Competitors of the company in the milk market.
Competitors of company in Varanasi market are:-
1. MOTHER DAIRY
2. PARAS
3. PARAG
4. AMUL
5. GOPALJI
6. MAMTA DAIRY
Main competitors of Parag milk are Mother dairy. Mother dairy is market leader in
Varanasi, maximum market share captured by Mother dairy.
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FIELD WORK PROCEDURE
Once the researchers have finalized the problem definition and research design steps, He
must conduct the actual data collection operation. The fieldwork is the most expensive of all
step .In a research project also the fieldwork is most prone to error. The researchers might be
in countered with a number of problem during the field work. The most common problem
during a field work are.:-
1. Not at home.
The people (sampling units) who the research wants to interview may not be available at
home. The researchers in such a situation may either call back poster or substitute another
house just adjacent or next-door.
2. Refusal to co-operate
The researchers may find the respondent at home but he may not obtain the desired co-
operation from them. Of the researchers it carefully selected and trained properly. He may
use his tactics to persuade the respond.
3. Respondents bias
The respondents may declined to co-operate the researchers must establish a report with the
respondent to avoid this. Event it they co-operate, respondents may give biased or misleading
answers to the question asked by the researcher
101
101
3. Interviewer bias
the interviewer may also introduce different types of bias in the answering to more facts of
their age, sex, manner or intention. In addition there may be conscious bias created by the
interviewers wing to his dishonestly. Every interviewer tries to finish his quota of interview
as quickly as possible and also at the cheapest possible cost
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FINDINGS AND RECOMMENDATIONS
1. There are a number of organized points and no single dealer is found to control the
whole area therefore the burden totally falls on the driver and salesman.
2. The scheduled time of delivery of milk is between 11 and 12 p.m but the driver go to
sleep first and afterwards load the van. This indicates the lethargic attitude towards
work.
3. The delivery of other brands of milk such as Gopalji, Mother dairy, amul, is earlier than
that of PARAG.
4. The delivery of the milk is totally unscheduled which results in the loose of market
share, which should be paid attention to with immediate effect.
5. The leakage of milk was found at various points of distribution because of which the
drivers and the salesman have to tolerate the rough behaviors of the dealers this
happens due to carelessness of production department and the dispatch personnel.
6. A focal point should be set up at Biswas Nagar so that the van does not have to make any
extra rounds to cater the demands of the dealers, and to facilitate the easy flow of milk
because that area is the major consumer of milk.
The condition of some delivery vans is miserable which should be improved so as to
enhance the efficiency of the salesman and the drivers.
8. PARAG booths have to be established at various points in Varanasi for easy and overall
distribution of milk.
103
After Mother Dairy, Parag milk was found to be the next best alternative choice of the
dealers because of its early delivery.
Most of the dealers are getting their supply as per the demand regularly but some times
variations occur.
Many a time’s the drivers and the salesman have to face the anger of the dealers
because of the leakage in the packets of the milk.
PARAG booths have to be established at various points in Varanasi and Far bad for
easy and overall distribution of milk
Milk is not evenly distributed in the Haryana region as the delivery schedule is very
limited and there is not more than one van on this route.
As PARAG Dairy, Varanasi packs milk for Mother Dairy of more than 1.75 lack liters
of milk Varanasi does not face any problem for milk.
The Mother Dairy sells its milk at a cheaper rate in comparison to PARAG milk; hence
PARAG should also decrease its price in order to beat its competitors.
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SUMMARY / CONCLUSION
Most of the customers are attracted towards packed milk because in this method there is no
rationalization in comparison to loose milk. Most of the customers preferred full cream milk
because in this fat percentage is very high and is highly in demand by the customer.
After that second choice comes DTM because in this fat % is low and the aged person and
patient prefer skimmed milk. Most of the customers purchase decision depends upon the
quality of the milk. Time availability also affects their purchasing decisions.
In customers opinion sales of Mother Dairy is more followed by PARAG Dairy. Customer is
fully satisfied with its distribution channel, time availability, and other facility.
105
BIBLIOGRAPHY
BOOKS REFERRED (AUTHOR’S NAME):
1. Ram swami V.S.
2. Namakumari S.
3. Marketing Management (kotler Phillip)
4. PARAG Journal
5. www.google.com
6. www.parag.com
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APPENDIX
Q. What type of milk you generally use? Milk powder Pasteurized milk Non Pasteurized milk
Q. What brand do you prefer most? Parag Mother dairy Amul Gopal Jee Any Other
Q. Are you satisfied with milk you consume? Yes No
Q. What type of milk you used? Full cream milk Toned milk Double Toned milk Skimmed milk
Q. On what basis you choose milk for consumption? Price Quality Availability Packaging Consumer Awaraness Brand Image
Q. Do you get the proper quantity of milk from the dealer, when you need (Timely)?
Yes No
Q. How do you come to know about Parag milk? News paper Friends From the nearest shopkeeper Any other
Q. Do you want any improvement in Parag milk? Yes NoIf, yes then what type of improvement do you want?
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Quality Price Packaging Availability Any other
Q. Do you want Parag milk in loose (without packet)? Yes No
Q. What type of packaging you prefer?
Half liter One liter
Q. Do you know about pasteurized milk and its effectiveness? Yes
Q. Do you know about quality control process used by different dairy firms?
Yes No
Q. DO you know that Parag milk is not only pasteurized but also clarified?
Yes No
Q. What is your option about the quality of Parag milk?
Excellent Good Average Below Average
Q. Which are the brands of milk you sell? Mother dairy Parag Amul Gopal Jee
Q. Why you prefer that particular brand? High demand High profit Easily available in time Good quality
108
Q. What is the most important factor when purchasing milk from company distributor/salesman?
Credit Margin Consumer scheme Quality Brand name Consumer preference
Q. What type of milk generally you buy more?
FCM DTM
Q. Whether you get the supply of Parag milk in proper quantity or not?
Yes No TM
Q.How is the behaviour of the salesman of parag milk? Good Bad
Normal Q. Are there any short coming being face by the driver and the sales man in the delivery process of parag milk?
Yes No Can’t say
Q. Is there regular defect in the packaging of parag milk? Yes No Need to be improved
Q. Which type of milk consumers prefer most? Full cream milk Toned milk Double toned milk Skimmed milk
109