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RESEARCH REPORT
ON
“SALES & DISTRIBUTION
OF
PARAG MILK”
SUBMITTED TO SUBMIITED BY
MBA DEPTT. RAJESH GOYAL
IEC College of Engg. & Technology MBA-4th Sem
R.N.0709070057
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:
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.
2
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
3
CONTENTS
CHAPTER-1
CHAPTER- 2
CHAPTER- 3
CHAPTER- 4
CHAPTER- 5
5.1 Bibliography
5.2 Appendix
4
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)
5
EXECUTIVE SUMMARY
Marketing is indeed an ancient art. It has been practiced in one form or other since the days
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
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
6
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”
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.
INTRODUCTION
7
DAIRY SCENARIO IN INDIA
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,
In live stock holding, India occupies the first position, accounting for 51 percent of the
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.
8
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
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
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
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.
Indian love to drink milk, hence no efforts are needed to make it acceptable its availability
9
It leaves the vital marketing factor affordability. How to make milk affordable to the large
B. Defense market:
C. Ingredient market:
Pharmaceutical and allied industries India with their sizeable dairy industry groining rapidly
10
INTRODUCTION TO DAIRY CO-OPERATION
During the early 1920s military dairy farms were established for adequate supply of milk to
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
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
INDIA in 1944.
11
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
A. Lack of an organized milk industry in India and ready and remunerative market for milk
B. In the absence of ready and assured market the chance of proper impact of development
C. India has to develop its own technology and technologist to solve the problem of Dairy
industry.
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
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
12
Toward the end of 1960 the lessons of the Gujarat dairy co-operative movement thus began
(NDDB) with the task of implementing operation flood which involved creation of Anand
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
13
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
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
The phase-II was implemented during the 6th five year plan.
14
OPERATION FLOOD PHASE -11 (1981-85)
The success of phase-I clearly demonstrated the reliability of Anand and pattern in milk
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
Thus Indian dairy industry is progressing well. The tremendous strides taken towards
equipment, veterinary medicines and vaccines and long distance transport vehicles for milk.
15
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
World Bank aided prestigious operation programme in the state has been implemented by
Nearly all the potential milk belts of the state were gradually covered in the three phases of
PCDF’s operation combine the basic guiding principle of Anand pattern Milk co-operative
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
OTHER PROGRAMMES
The federation’s unfailing reputation has won it the task of implementing various
16
Due to reputation, efficiency and wide network with quality manpower, PCDF is currently
Capturing a dominant shares of the urban milk market, hitherto served by multitude of small
societies in different milk shed areas to the organized urban dairy industry, Upgrading the
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
The programmed achieved hitherto under this programme has own many laurels for PCDFC
17
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
Through its consistent efforts PCDF has ensured that the rural women remains indispensable
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
The staff has been trained for special function being performed by the Federation.
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
18
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
Equipped central Quality control Laboratory based at Lucknow which Checks orgenolepetic
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
The clientele include several prestigious institutions- U.P. and Varanasi besides the Indian
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
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
19
PCDF- SOME FACTS
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
NUMBER OF CO-OPERATIVE:30
20
OBJECTIVE
In Varanasi and NCR generally more than 70% of the dealers preferred MOTHER dairy 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.
21
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)
Limited, Lucknow.
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
22
BUSINESS AND MARKETING
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
countries.
23
PRODUCT OF THE COMPANY
Parag proudly present itself as a premium brand in the Indian Dairy industry. A list of
Dairy whitener
Pure ghee
Table butter
White butter
Dahee
The taste, flavour and excellent quality of our SMP-ISI and pure ghee have made
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
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.
24
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
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,
25
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
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.
26
QUALITY ASSURANCE
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
• Customer satisfaction is at the focus of the latest international standards for quality
of features and characteristics of a product and service that bears on its ability to satisfy
27
QUALITY OF MILK
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
3. Sensory Quality
28
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,
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.
• Portable water and drainage, approach road and electricity in DCS villages
• Awareness among the farmers resulting in poor hygiene, sanitation & environment
condition
29
TYPICAL OBSERVATIONS
• Milking the animals in dirty surrounding with cow-dung & animal urine
• Use of "Aluminum, plastic, GI Utensils" for making the animals and carrying the milk
to DCS
• Use of plastic jerry cans at DCS level for transportation of raw milk
STRATEGY ADOPTED
- CMP awareness through village level meetings, booketlets, calendars & posters
- Introduction of BMC
30
• Incentives to DCS for supplying good bacteriological quality milk.
• Bactaslyde
-Quick testing and easy to use technology for total bacterial load and coliform load
31
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
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
At certain centers facilities for the pre-cooling of milk is also available. It also avoids any
32
Vedram & Sons VRS Foods
Milk ||Ghee|| Ghee || Parag
Butter
33
MILK TESTING
1. ORGANOLEPTIC EVALUATION
2. COB TEST:-
Take 2ml of milk in a dry test tube. Boil milk on flame of spirit lamp .Formation of ppts. in
3. ALCOHOL TEST :-
Take 5 ml in a test tube . Add 5 ml (60% by volume) alcohol with constant shake. Formation
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.
5. NEUTRALIZER TEST:-
34
Take 2 ml milk rosalic acid (0.05% in 60 % alcohol), add 2 ml of milk .Rose red colour
6. UREA TEST :-
Take 2 ml milk in test tube , add 2 ml DMAB solution and mix the contents. Appearance of
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
8. STARCH TEST :-
Take 3 ml milk in a test tube , boil and cool under tap water and add 2 drops of 1 % Iodine
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
35
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
Take 5 ml milk in a test tube and add 2 drop of para phenyl diamine hydrochloride (1%).
Centrifuse the milk, take out cream plug & make ghee. Add a drop of clear fat on
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)
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
Take 10 ml milk in a sterilized tube, add 1 ml MBR dye solution plug with a sterilized cork
36
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
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.
37
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
The sales network is spread throughout Northern India, and the Far East. Besides these the
38
Milk transport cans.
Cheese plant
Ice-cream plant
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
39
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
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
40
MANAGEMENT HIERARCHY
PCDF has 10 division every division has managers who are responsible of every division is
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
through management service division which will check the plan to see whether they are in
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.
41
REGIONAL MARKETING OFFICE
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
ADMINISTRATION:
PERSONNEL
ADMINISTRATION
E.D.P
42
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
E.D.P
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
FINANCE
1. Financial Management
2. Audit
3. Accounts
MATERIAL DIVISION
43
MARKETING
At present the liquid milk has been brand name PARAG is being distributed through local
ENGINEERING
1. Project Engineering
2. Maintenance Engineering
1. Market Research
2. Product Research
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.
44
TYPE OF MILK SPECIAL FEATURES SUITABLE FOR
Parag Gold (full cream m High fat, creamy Growing children, youth,
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
45
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
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.
Evidently, in the rural context the firm has to choose a combination of formal and non – formal
TV
Cinema
Press
Direct mail
Radio
Outdoors
46
NON-FORMAL/ RURAL SPECIFIC MEDIA
Music records
Study classes
Demonstration
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
0UTDOORS:-- Outdoors also lend itself well to rural communication. Infact presently many
companies are using the outdoor hoardings and wall painting etc.
Audio visual publicity vans. The AV unit or the publicity van is very useful for rural
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
47
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
SPECIAL FEATURES
SUITABLE FOR
48
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
Government can also has been adopting to maintain milk quality that’s why (23 quality test
Due to its reputation PCDF is currently implementing following development and promotion
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.
49
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
50
SWOT ANALYSIS OF PARAG DAIRY
STRENGTHS
in Asia
Functional organization.
PRODUCTION
Computerized & automated operation.
FINANCE
Funded by Govt. of U.P &Varanasi
MARKETING
51
Reasonable in price
PERSONNEL
WEAKNESSES
52
Weak position in the mind of customer.
OPPORTUNITIES
health.
Appropriate time to venture into production and marketing of UHT milk, to serve milk,
ice creams.
THREATS
Less advertising and promotional expenditure are currently negatively affecting and
Lack of good distribution network threatens the very survival of company as well as the brand PARAG.
53
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
4. The time period allotted for the study was limited as it had to be completed with this
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.
54
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
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
55
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
SAMPLING
Probability sampling
2. Systematic sampling
3. Stratified sampling
4. Area sampling
1. Convenience sampling
2. Quota sampling
3. Judgment sampling
4. Panel sampling
56
Sampling unit
SAMPLING PROCESS
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.
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
57
58
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.
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
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
59
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
60
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
Maximum customers gave very good response in filling questionnaire also provide extra
1. Decrease in price
3. Better technology
4. Emphasis on advertising
6. More distributors.
7. Delivery regularly
8. Delivery timely
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The following major products marketed by company are as follows
7.Special Features: Made from fresh cream, has a typical rich aroma
and granular texture and ethnic product.
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Table Butter:
Ingredient Butter,salt,Annatocolour
63
Name of the product PARAG SKIMMED MILK POWDER
Special features Meets ADPI extra grade and BIS extra grade
64
DAIRY WHITENER
65
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.
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.
Chart
66
mod
Manoj store Biswas Nagar 7 - -2 -
J K store Biswas 7 - - -
Nagar
Baba store Biswas Nagar 4 - - -
Chart
67
Sanjay store Sec.8 4 2 1 2
Varanasi
Saschin store Sec.8 6 1 5 -
Varanasi
Tiwari store Sec.8 7 2 3 1
Varanasi
Sharma store Sec.8 8 3 2 -
Varanasi
Devi lal store Sec.8 8 4 1 -
Varanasi
Dhulichand store Sec.11 6 5 5 -
Varanasi
Tundu store Sec.15A 9 6 3 -
Varanasi
Chart
68
Gupta store Yamuna Vihar 12 9 - -
Chart
69
Vinod store Dayalpur 21 - 4 -
R K store Mustakabad 6 - - -
70
Chart
Properties Consumption of various milk
categories (in Carates)
Dealers name Location FCM TM DTM SKM
71
-
-
Chart
Properties Consumption of various milk
categories (in carates)
Dealer Name Location FCM T.M DTM SKM
72
TOOL AND TECHNIQUES
Measuring scales:-
♦ Nominal scale
♦ Survey
♦ Questionnaire
Statistical tools
♦ Bar diagram
♦ Pie chart
73
DATA ANALYSIS OF VARIOUS CUSTOMERS OPINIONS
• Milk powder
• Pasteurized milk
Table 1
milk
8 80 12
8%
28%
Powder milk 2
Pasteurized milk
Non pasteurized milk
64%
74
• Findings: It was found that most of the consumers prefer to buy Pasteurized
milk.
• Parag
• Mother dairy
• Amul
• Gopal Jee
• Any Other
Table 2
8%
20%
12% Parag
Mother dairy
Amul
20% Gopal jee
Any other
40%
75
Findings: Mother dairy got the highest rank i.e. 32% preference than comes Paras with
20%.
• Yes
• No
Table 3
Yes No
60 40
40% Yes
60% No
76
Q. What type of milk you used?
• Toned milk
• Skimmed milk
Table 4
35%
30%
25%
20% 35%
15% 30%
25%
10%
5% 10%
0%
FCM TM DTM SKM
Findings: It was found that most of the customer preferred to buy full cream milk or
DTM
77
Q. On what basis you choose milk for consumption?
• Price
• Quality
• Availability
• Packaging
• Consumer Awaraness
• Brand Image
Table 4
awaraness Image
8 44 16 4 8 20
Price
On what basis you you choose milk
consumption?
Quality
Availability
20% 8%
8% Packaging
4% 44% Consumar
awareness
16%
Brand Image
78
Findings: Most of the customers buy milk on the quality basis.
Q. Do you get the proper quantity of milk from the dealer, when you need
(Timely)?
• Yes
• No
Table 5
Yes No
80 20
79
Do you get the proper quantity of milk from the
dealer?
20%
Yes
No
80%
Findings: Most of the consumers get milk from the dealer timely.
• News paper
• Friends
• Any other
Table 6
shopkeeper
28 12 40 20
80
How do you come to know about prag milk?
News paper
20% 28% Friends
Findings: It was found that the maximum number of consumers came to know about
• Yes
• No
Table 8
Yes No
16 84
81
Do you want Parag milk in loose?
Yes
16%
Yes
No
No
84%
Findings: It was found that about 84% customers were not interested in taking milk in
loose.
• Half liter
• One liter
Table 9
82
What type of packaging do you prefer?
One litre
28%
Half litre
One litre
Half litre
72%
Findings: It was found that about 72% customers purchase half litre milk.
• Yes
• No
Table 10
Yes No
84 16
83
Do you know about pasteurized milk and its
effectiveness?
No
16%
Yes
No
Yes
84%
Findings: It was found that about 84% of the regular customers were aware of the
Q. Do you know about quality control process used by different dairy firms?
• Yes
• No
Table 11
Yes No
64 36
84
Do you know about Quality Control Process used
by different Dairy firms?
No
36% Yes
Yes No
64%
Findings: From the survey it was found that 64% of the customers were aware of the
Q. DO you know that Parag milk is not only pasteurized but also clarified?
• Yes
• No
Table 12
Yes No
60 40
85
Do you know that Parag milk is not only
pasteurized but also clarified?
No
40% Yes
Yes No
60%
Findings: From the survey it was found that 60% of the customers were aware that
• Excellent
• Good
• Average
• Below Average
Table 13
86
44 24 16 16
12
10
8
Excellent
6 Good
4 Average
Below Average
2
0
Excellent Average
• Mother dairy
• Parag
• Amul
87
• Gopal Jee
• Paras
• Any other
Table 13
10
8 Mother dairy
6 Parag
4 Amul
Gopal Jee
2
Paras
0
Mother Amul Paras Any other
dairy
Findings: It was found that most of the retailers sold Mother dairy then Parag &
Amul.
• High demand
• High profit
88
• Good quality
89
Table 14
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
• Consumer preference
90
Table 15
Preference
16 20 8 28 16 12
What is the most important factor when purchasing milk from company
distributor/salesman?
Credit
Consumer Credit
preference 16% Margin
12%
Consumer
Brand name
scheme
16%
Quality
Margin
20% Brand name
Quality
Consumer
28% Consumer
scheme preference
8%
Findings: : It was found that most of the retailers sold On the basis of Quality.
• FCM
• DTM
91
• SKM
• TM
Table 16
Q. Whether you get the supply of Parag milk in proper quantity or not?
• Yes
• No
92
Table 17
Yes No
68 32
No
32%
Yes
No
Yes
68%
Findings: It was found that most of the retailer get supply in proper time.
• Good
• Bad
• Normal
93
Table 18
15
10
11
5 8 6
0
Good Bad Normal
Q. Are there any short coming being face by the driver and the sales man in the
• Yes
• No
• Can’t say
Table 19
94
Yes No Can’t say
56 24 20
Are there any short comings being faced by the drivers and the
salesman in the delevery process of Parag milk?
56%
Yes
No
24% Can't say
20%
Finding : Yes most people fullfill the shortage of parag milk by salesman.
• Yes
• No
• Need to be improved
Table 20
95
Is there regular defect in the packaging
of Parag milk?
5% 22%
Yes
No
Need to improve
73%
Finding : Yes the most people are saying regular defect of parag milk.
• Toned milk
• Skimmed milk
Table 21
Full cream milk Toned milk Double toned milk Skimmed milk
56 9 30 5
96
Which type of milk consume prefer most?
OPINION SURVEY
Survey is the systematic gathering of data from the respondent through questionnaire. There
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
97
potential respondent and attempt to secure the respondent co-operation in answering a list of
predetermined questions.
Advantage of survey:-
Disadvantage of survey:
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.
There are several factors, which need to be evaluated for selection of the most suitable
Cost
Time
Accuracy
Response rate
Flexibility
98
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
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.
99
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
others.
Functional application
Casein :
8. Parag Acid Casein finds a ready market in Germany and also caters to the domestic
market.
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2. For Life style and Dietetic food formulations etc.
1. Cost effective substitute to SMP for Bakery, Confectionery and Ice cream
applications.
For Dairy mixes, Coffee Whitener, Frozen Desserts Spice and Seasoning blends, etc.
101
Competitors of the company in the milk market.
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
102
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
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
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
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
103
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
104
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
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
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
8. PARAG booths have to be established at various points in Varanasi for easy and overall
distribution of milk.
105
• After Mother Dairy, Parag milk was found to be the next best alternative choice of the
• 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
• PARAG booths have to be established at various points in Varanasi and Far bad for
• 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
• 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.
106
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.
107
BIBLIOGRAPHY
2. Namakumari S.
4. PARAG Journal
5. www.google.com
6. www.parag.com
108
APPENDIX
Q. Do you get the proper quantity of milk from the dealer, when you need
(Timely)?
• Yes
• No
109
• No
If, yes then what type of improvement do you want?
• Quality
• Price
• Packaging
• Availability
• Any other
• Half liter
• One liter
• 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
110
• Easily available in time Good quality
Q. What is the most important factor when purchasing milk from company
distributor/salesman?
• Credit
• Margin
• Consumer scheme
• Quality
• Brand name
• Consumer preference
• FCM
• DTM
Q. Whether you get the supply of Parag milk in proper quantity or not?
• Yes
• No
• TM
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
111