Chapter-1

INTRODUCTION

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 Chapter-1

INTRODUCTION

I.FMCG Industries in India: An overview

The FMCG sector is a cornerstone of the Indian economy. This

sector can drive growth, enhance quality of life, create jobs, and support

penetration of technology. A vibrant FMCG sector can boost agricultural

product and export. It contributed to the exchequer significantly, disperse

technology across the value chain and usher in the product innovation.

This innovation can improve Indian Health standards.

Fast Moving Consumer Good (FMCG) industry has a long history.

However, the Indian FMCG began to take shape only during the last

fifty-odd years today; the Indian FMCG industry continues to suffer from a

definitional dilemma. In fact, the industry is yet to crystallize in terms of

definition and market, size, among others.

The definitional confusion that has marked the Indian FMCG industry is

getting confounded. Some others call it the CPG industry and some even

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call it the PMCG industry. The Indian FMCG industry has suffered because

of the confusion.

It is an industry which touches every aspect of human life from

looks to hygiene to palate. Perhaps defining as industry whose scope

is so vast is not so easy.

The facts that the FMCG industry is a noteworthy employer and a major

tax payer are being ignored. The only thing that is cheering the industry is

the reforms of the nineties. Post reforms, the industries is excited about a

burgeoning rural population whose income are rising and which is a

willing to spend on goods designed to improve lifestyle. What is needed

now is a change in the mindset of the mandarins, FMCG industry -friendly

legislation is the needs of the hour. It does not matter whether changes are

being brought about by dawning market realities or the ongoing economic

reforms. One thing is certain here: The Indian FMCG industry has

a promising future to look forward to.

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In terms of growth potential, the Indian market is a great horse to

bet on. With a little help and understanding from the government, the

Indian FMCG can realize its true potential. So far, it has been a checked

graph for the MNC’s operating in the Indian FMCG industry.

Domestic companies are only beginning to make their presence felt

in the industry. It has taken tremendous consumer insight and market

savings for the FMCG players to reach where they are today. But, the

journey has only begun.

II. NDDB

NDDB stands for National Dairy Development Board. The NDDB was

created to promote, finance and support producer owned and controlled

organizations. NDDB’s programmers and activities seek to strengthen

farmer cooperatives and support national policies that are favourable to the

growth of such institutions. Fundamental to NDDB’s are cooperative

principles and cooperative strategies.

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II.1DAIRY DEVELOPMENT IN UTTAR PRADESH

U.P is the highest milk producing state in India having the share of 18% of

the total production of the country. The per capita availability has gone up

to 350 grams.

Dairy development programme is being implemented in state through the

following sectors:-

1.Cooperative Sector

2.Private Sector

1. COOPERATIVE SECTOR:-

In the year 1917, saw the advent of the First Co-operative Milk Society at

Katra, LUCKNOW. It was unfortunate that no special efforts were made in

this direction for the next two decades. It was then in the year 1938

LUCKMOW PRODUCER’S CO-OPERATIVE MILK UNION was

established. In the coming years Lucknow, Varanasi, Haldwani,Nainital

and Lucknow Milk Unions saw the light of the day.

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Objectives of the O.F. Programme

(1) Capturing a dominant share of the urban milk market, hitherto served

by a multitude of small vendors.

(2) Creating a procurement network to link numerous cooperative

producer societies in different milk shed areas to the organized urban dairy

industry.

(3) Upgrading the milk production capacity of Indian bovine stock

through a programme of crossbreeding, veterinary services and auxiliary

activities.

The Operation Flood Programme in the State was being implemented by a

three tier cooperative structure :-

(1) Dairy cooperative societies at the village level handling procurement of

milk.

(2) Co operative Milk Unions at the district level engaged in processing

and product manufacturing.

(3) Pradeshik Cooperative dairy Federation (PCDF) at the State Level

charged with coordination of marketing.

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Operation Flood-1 was initiated in 1971 and covered 8 districts of the

Lucknow and Varanasi milk sheds. Besides Cattle Feed factory of one

handed Metric capacity each at Lucknow and Varanasi were established.

Operation Flood -2 started in 1982, wherein coverage was extended to 28

districts.

Operation Flood-3 launched in 1987 and included two more districts, so

that of the total 83 districts, was implemented in 30 districts/as of the date

the coverage has been extended to 41districts. The Operation Flood

Programme completed its third phase in the year 1994-95.

The federation is equipped with sophisticated plants and machinery to

manufacture Ghee, Table Butter, Milk Powder, Infant milk food and other

dairy products on a big scale. Our manufacturing capacity covers

approximately 37 MT Ghee, 30MT Butter and 55 MT of Milk Powder daily.

2. PRIVATE SECTOR:-

Presently 25 registered private dairy are functioning in different districts of

the State, with a total handling capacity of 46.64 lacs liter per day. The

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dairy Development Department is also running some supportive

programmes for dairy development in state of Uttar Pradesh as: IMDP,

WDP, RFWP, UPDASP, SCP, Shwet Kranti Yojna.

II.2 IMDP – Intensive Mini Dairy Project:

The largest employment generation programme named an IMDP

under Deen Dayal Rojgar Yojna was initiated in the year 1991. The

programme was launched in 17 districts of the State in the first phase. In

due course of time the scheme at the Government level was renamed as

Vishes Rojgar Yojna. For the Year 1999-2000 the total number of

mini dairy stands at 18, 5000 in 73 districts of the state.

II.3 RFWP – Rural Family Welfare Programme:

Under the aegis of SIFPSA a family welfare project is running at present. It

is an ideal programme for family welfare through dairy cooperative

society. It is currently operating in 13 districts. Further 3 new districts will

be added in U.P.

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III. Company Profile-PARAG

The common brand name of the company is ‘‘PARAG’’ the meaning of

PARAG is the pollen of flower the slogan in the logo is:-PURE NATURAL

& GOOD HEALTH

Parag milk shed is situated in Lucknow, the capital of Uttar Pradesh since

independence it has formed part of the traditional supply line of

agriculture products from the village to big cities rich in its milk potential

the milk shed has, in the source of last few decades been thoroughly

exploited by small traders and powerful contractors and well organized

private dairies. Thus, while such intermediaries were retaining large profits

the milk producers found their position deteriorating day by day.

Lucknow Producer’s Co-operative milk union Limited (LPMUL) is a co-

operative milk union set in 1938 to ensure fair payment to milk producers

and regulate supply of milk within UP. The unit receive preference equity

share of Rs 20 million from the UP Government, and equity participation

from union member (milk farmers). The union has 32000 members, which

represent 663 milk producing village in Lucknow. The union manufactures

dairy products such as pasteurized milk, curd, and butter. It is one of the
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40 similar milk union in UP , all of which sell their product under the

brand Parag through the UP’s apex milk body Pradeshik Cooperative

Dairy Federation (PCDE).The Parag brand is mainly marketed in north

India the unit is in Lucknow and has processing capacity of 150,000 litres

per day of raw milk.

Dairy development programme have its own a glorious history in

the tiled of cooperative. The establishment of the ‘Katra Co-operative Milk

society Allahabad’ in 1917 was the first emergence of co-operatives in the

milk trade not only in the state but also in the country itself. However

there was not much progress in this direction for the next two decades. In

the year 1938, the country’s first milk union ‘Lucknow Milk Producers

Cooperative Union Ltd.’ was set up in Lucknow, the capital of

UttarPradesh.

To accelerate the progress of dairy development in the state, the Pradeshik

Cooperative Dairy Federation Ltd. was set up as a technical consultancy

firm in 1962. In 1970-71,Operation Flood-I project was launched in eight

districts of the state and the federation was made its implementation

agency. Being confined to eight districts only, the O.F.-I project did not

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have a major impact on this programme. As a result the Uttar Pradesh

government’s attention was drawn to the expansion of dairy development

and, with the purpose of expediting the dairy development programme the

Uttar Pradesh government passed the “Uttar Pradesh Milk Act, 1976.” In

the year 1976, Dairy Development Department was set up as a separate

department and the post of Milk Commissioner was created. As per the

government Act and the laws made under it, the Milk Commissioner was

accorded the authority of Registrar for milk cooperatives and also

appointed the Head of Department and secretary of the State Milk Board.

At present Uttar Pradesh is the largest producer of milk in the country.

III.1.Vision, Mission and Objective

Vision:-

Parag will continue to grow as an FMCG major, delighting national and

international customer with quality products and services.

Mission:-

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 PCDF’S mission is to become the strongest marketing by organization.

PCDF’S came into existence in 23rd march 1938 with the simple intention of

ensuring a fair return to the producers. Which was implement in UP is the

year 1983-1984 provided the much needed impetus to co-operation. The

mission was to develop a product mix that would not only promote

sustained growth but also help member union to develop adequate.

Production and processing are facilities. It also aimed to offer quality

products at fair price and to do so by achieving economies of scale and

costs. This mission gave birth to brands like Parag.

Objectives:-

PCDF’S front end objective was to see that there was enough milk for

everyone in town. Marketing is simply the PCDF’S tool to achieve their

ultimate objective and delivering the pure Parag milk to every home.

Purpose:-

PCDF’S aims to build a system to ensure that individual farmer got a fair

price for the milk he sold.

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III.2 Profile of the Company

NAME OF THE ORGANIZATION LUCKNOW PRODUCER’S CO-

OPERATIVE MILK UNION LTD.

ADDRESS OF ORGANIZATION 22 JOPLING ROAD LUCKNOW

ESTABLISHED 1938

REGISTRATION 23rd MARCH 1938

FOUNDER Mr. RAJ BAHABUR GOPAL LAL

PANDYA

BOARD OF DIRECTOR Mr. GOPAL PANDYA

Mr. N.C.CHAURVEDI

Mr.TEJ SHANKAR

Mr. PUSHKAR NATH BHATT

LOCATION INITIALLY CHARBAGH,

NOW PRESENT IN 22, JOPLING

ROAD,

LUCKNOW.

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AREA OF DISTRIBUTION INITIALLY BAKSHI KA

TALAB,TELI BAGH,SOUTH

CITY,TEWARIGANJ, AT PRESENT

ENTIRE DISTRICT

INTRODUCTION TO DAIRY CO-OPERATIVE

For long years milk production in the country has been characterized by small –

scale production of milk by most farmers has made milk producers. This was an

important reason for the Kaira Union & its success. Unions which came in Gujarat

during the 1955’s acquired greater significance that traditional dairy co-operative

the reason being, they tuned in with the processes of modernization and

commercialization.

Between 1948 & 1957 the Kaira Union grew from 250 liters from 5 villages’

societies to 50,000 liters from 9000 village’s societies It was therefore, inevitable

that they attracted growing attention of policy makers. Towards the end of 1960’s

the lessons of the Gujarat Dairy co-operative Movement thus begain to get

incorporated in the official policy towards dairy development. The government of

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India entrusted the National Dairy Development Board (NDDB) with task of

implementing Operation Flood (OF) which involved creation of Anand pattern or

Amul type co-operative unions in 17 districts of the country.

OPERATION FLOOD –I(1970-81)

Operation Flood was the result of an organized attempt directed towards the

development of the dairy industry in India. The program has laid emphasis on

setting up of Anand Patten rural milk products co-operative organization to procure

process and market milk and to provide some of the essential technical services for

increasing milk with the world program.

The emerging consumption pattern presents new challenging for the dairy industry.

The strategy is now shifting from distribution to sales and marketing. Extreme

perishability of milk and possibilities of its contamination necessitate rapid

movement of milk.

Indian dairy market is multi-layered shaped like a pyramid with the base made up

of vast market for western type milk products. Presently, rarely 778 out of 3,700
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cities & town are served by its milk distribution network dispensing hygienically

packed wholesome, quality pasteurized milk.

Of the three A’s of marketing availability, acceptability & affordability, Indian

dairying already endowed with the first,people in India love to drink milk, hence

,no efforts are needed to make it acceptable, its availability is not a limitation

either. Because of ample production; it leaves the third vital marketing factor

affordability, how to make affordable for the majority of consumers with limited

purchasing power? This is essence of the challenge.

New emerging daily market will focus on:-

a) FOOD SERVICE INSTITUTIONAL MARKET.

It is growing at double the rate of consumer market.

b) DEFENCE MARKET:-

an important growing market for quality products used as raw material in

pharmaceutical and allied industries, India with her sizable dairy industries

growing rapidly and is on the path of modernization would have decades to

come.(WFF)undertook to provide as aid 12600 tones of Butter Oil(BO)for

financing the program.

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The program organized dairy co-operative at the village level providing and

production enhancement of city set dairies. the main thrust was to setup dairy co-

operatives in the milk sheds, so as to link them to the four metro cities

BOBBAY,DELHI,CALCUTTA & MADRAS, in which a commanding share of

the milk market were to be captured. The overall objective was a modern dairy

industry in India, which would adequately meet the country’s need for milk

product.

The object of OPERATION FLOOD- I was:

Removing the middlemen between the producer and consumer by the procurement

of the mild directly by the producer, directly through village co-operative society.

OPERATION FLOOD II(1981-85)

The background of the institutional framework of Operation Flood-II essentially

comprised the successful replication of Anand Patten of a three tier co-operative

structure of societies, union & federation .the program was approved by the

Government of India for implementation during the sixth plan period, with an

outlay for Rs.273 crores. An about US$ 150 millions was provided by the World

Bank & the balance in the form of commodity assistance from the expanded

number of Village Co-operative societies to 34,500 covering 36 lakh farmer

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number. The peak milk procurement increased to a level of 79-lakh liters per day

& marketing to 50-lakh liters per day.

OPERATION FLOOD III(1985-96)

The third phase aimed at consolidated gains of earlier phases. The main focus of

the program was on achievement financial viability of the milk union/state

federation & adopting the salient institutional characteristic of the “Anand Pattern

Co-operative.” The Operation Flood –III program was funded by a World Bank

Credit loan of US$ 365 million, Rs.222.6 crore of food aid by EEC & Rs. 207.7

crore by NddB’s own resources. The program covered some 170 milk shades of

the country by organizing 70,000 primary dairy co-operative societies. The

objective of Operation Flood –III was:

 To arrange the supply of liquid of milk in major cities in U.P

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 COMPANY PROFILE FOR

LUCKNOW

PCDF was formed in 1962 with the aim to develop organized dairying in the State

on Cooperative lines PCDF's is a cohesive body that successfully does away with

the exploitative forces of years to years-the Middlemen.Therefore a direct link is

established between the producer and the ultimate consumer . This Apex Milk

Cooperative draws its inherent strength from the farmers committed participation ,

and injects corporate skills and dynamic professionalism into what is

fundamentally a traditional institution.

Over the years PCDF has expanded, diversified ,channelized into new areas , over

new dimensions, onto new challenges.Today it features prominently in the

National Milk Grid,supplying Milk to Mother Dairy for sale in Delhi.

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However, PCDF's achievement cannot be quantified in mere statistics . Its real

sense of pride lies in the fact that its farmer members are heading surely and

steadily towards a prosperous future and the knowledge that its consumers reaffirm

their faith in Parag year after year. It is in this context that PCDF's success is to be

measured.

A Milk Cooperative , perceived as a business organization, is simply a group of

people who have willingly pooled in resources and energies to pursue a common

goal out of which they derive mutual benefits

 Uttar Pradesh is the largest milk producing state of India contributing 17 %

of the total milk production of India. In the year 2010-2011, the total milk

production in the state was 21033.3 thousand kg. per day

 A milk cooperativ society in a village in Allahabad district set up in 1918

marked the beginning of milk cooperatives in Uttar Pradesh

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 Successful efforts gave way to formation of Lucknow Milk Union in 1938-

the only Milk Union in the country -giving Uttar Pradesh the credit of being

a pioneer state in the country in this segment

 PCDF was the chosen agency to implement the World Banks prestigious

Operation Flood programme in the state

 At present PCDF lends its support and services to 6,00,000 rural milk

producers through 59 District Milk Unions and about 13,500 Village Dairy

Cooperatives in the State

 Parag is the brand name for a range of milk and milk products including-

Milk , Skimmed Milk Powder, Whole Milk Powder, Butter , Ghee, and an

array of indigenous milk products like Paneer,Curd,Peda,Milk Cake, Khoa,

Laddu, Mattha and Chhachh etc.

 Plants in Meerut and Varanasi, are in constant operation to supply balanced

diet feed for milch animals owned by farmers of the state

 Training centres ,situated in Kanpur, Lucknow, Meerut, Varanasi, Agra and

Rae Bareilly,impart both skill and awareness based trainings

 A Jersey Cattle breeding unit is located in Rae Bareilly, for rearing of Jersey

Bulls

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  At FFHC Unit in Moradabad ,Frozen Semen Doses of Good quality breed of

milch animals are prepared for Artificial Insemination Services

 Fodder Seed Processing Plant located in Aligarh, produces good quality

Fodder Seeds for distribution to farmers for cultivation of good quality

fodder feed for milch animals

The dairy development in co-operative sector U.P. has long history with Karta co-

operative milk society of Allahabad organized in 1917.milk industry for the first

time entered In the Co-operative sector. PCDF is a pioneer in milk production in

U.P. and based on “ANAND PATTERN”.

Lucknow milk producers’ co-operative union (LMU) was established in 1938. It

was an autonomous body where milk was brought from nearby villages and

processed. In 1962 Pradeshik Co-operative Dairy Federation Ltd.

(P.C.D.F.) was established by the government. The aim was to remove the

middleman from transactions between producers and consumers and also to help

the backward classes and villagers economically. The P.C.D.F. took charge of

LMU and other co-operative units of the state after its establishment. Its major role

is to provide technical knowledge to the people at LMU an.

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The P.C.D.F’s functions are based on the objectives of the operation flood, which

are to increase the production of milk from matching animals, by providing the

technical inputs to the producers and to arrange the supply of liquid milk products

in major cities of U.P. and other state.

LMU has about 400 workers and 100 staff members. The GM to LMU is appointed

by P.C.D.F. but LMU has its own members of board. There is another office

situated at a distance of about 2 km from P.C.D.F., which is regional marketing

office (RMO). The regional manager heads it.

Dairy products are marked under the brand name “PARAG”. They have a

considerable market share in U.P. and other region in north and east. There has

been an increase in the market competition due to the establishment of many

private dairies who have introduced their own brand of milk products.

Amul products still have to face very tough competition in Lucknow “PARAG”

due to the efficient distribution network of marketing division of P.C.D.F.

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 NEW DEVELOPMENTS

As a result of policy of liberalization and de-regulation of govt. of India the State

Government also head away with the licensing provision of U.P. Milk Act, 1976

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which required a license for the processing capacity beyond 500 LPD. Now the

dairy industry in the state is being governed by the provision of MMPO, 1992

(milk and milk products order) where by the processing units with a capacity of

more than 75,000 LPD are required to register with the competent authority at the

Govt. of India level whereas the units ranging between 10,000 to 75,000 LPD have

to be registered with the milk commissioner Govt. of U.P. the units below 10,000

have been exempted from any registration.

Providing concession at 1.5% the milk price to be paid by the processing units in

the state is creating a milk development fund. This fund will be used for providing

assistance to dairy industrialists, extend health cover and technical inputs , creating

additional processing facilities in the backward areas and holding national and

international seminars on new dairy techniques with a view to encourage private

entrepreneurs in the dairy sector. A Dairy Consultancy Center has been set up by

the State Government.

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 II.3About the Company Formatted: Centered, Indent: Left: 0.5", Space After: 12
pt

In 1950 a co-operative milk supply union was organized in Lucknow. This

started collecting milk from village and supplied to Lucknow and local

Markets. This milk union continued function for about a decade; in the

mean time Lucknow milk scheme was established by government of India

IN 1959-60 to ensure the cheaper milk to the local population of Lucknow.

The scheme started operating through 12 chilling centers in Eastern Uttar

Pradesh. These chilling centers mainly coated in the District of Lucknow,

Barabanki, Raebareli, Kanpur, Unnao, Sitapur etc. the milk was mainly

collected through contractors. 10 milk unions were also found at the same

time, around each chilling centers. These continued functioning in a rather

lop-sided manner till 1977.

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This programme was launched in Uttar Pradesh in 1972 and the

implementing agency was in the Pradeshik cooperative dairy federation

limited which was framed in the year. The basic idea was to replicate

anand pattern societies in Uttar Pradesh. In august September

1972organization of societies in Lucknow district was taken up bar out,

Mohanlalganj, Amausi blocks. A spear head team from national dairy

development,

which started functioning from April 1978 with a team of 27 employees, dr

awn fromLucknow milk 198 milk procurement cooperative societies by the

year 1981, when the operation fllod-14 programme ended.

Feeded balancing dairy, Lucknow Producer’s Co-operative Milk Union Ltd

was set up under operation flood-1 programme with the specific purpose

of supplying milk of local markets and other districts dairies and

conversion surplus milk into various dairy products. This dairy is situated

in the middle of Lucknow. The dairy was commissioned in April 1978.

The purpose of establishing feeder balancing dairy, Lucknow was to

provide remunerative market for milk produced in the milk shed

comprising district of Lucknow, Barabanki, Raebareli, Kanpur and

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Sitapur as envisaged under operation flood-1 scheme. Thus

feeder balancing dairy was obliged to receive entire surplus milk from the

rural areas, through a network of milk coop. In 1978-79 the average

handing of milk per day at FBD-Lucknow Producer’s Co-operative Milk

Union Ltd was 49,300kg. With peak handing of 1, 04,950kg in the Feb.

In April 1981 Lucknow Producer’s Co-operative Milk Union Ltd launched

pasteurized whole milk packed in polythene sachet

for local consumers. The supply of milk was gradually extended to other

local markets.

As the basic idea of establishing FBD-Lucknow Producer’s Co-operative

Milk Union Ltd was to convert surplus milk into various dairy-products,

this activity started in Sept. 1978.

With manufacture of skimmed milk powder and ghee, the manufacturing

of table butter was started from April 1981.

In view of milk production procurement and marketing potential of

Lucknow Producer’s Co-operative Milk Union Ltd, and expansion

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programme has been undertaken by N.D.D.B. on turn basis. The target set

is as under:

 Increasing processing capacity from 1 lack to 3.5 liters per day.

 Increasing power plant capacity from 10 tons to 40 tons per day.

 Increasing the capacity of ghee plant from 1.m.t. to 4.m.t. per day.

 Increasing the capacity of butter manufacturing up to 16.m.t. per day.

The work of expansion has been complete in 1989.

The work of expanded dairy started functioning on full capacity in 1991-

1993 year. The liquid milk and products are selling in the market in the

brand name of PARAG.

The milk product has been marketed by P.C.D.F. luck now. The sale of

liquid milk has been carried out Lucknow Producer’s Co-operative Milk

Union Ltd, Lucknow.

In the year 1983 P.C.D.F. Ltd. started working under Operation Flood – II

(White revolution) scheme. Mostly unit milk Sahakari Board where

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connected under Operation Flood – II, having the name Dugdh Utpadak

Sahakari Sangh (D.U.S.S.) Ltd.

PARAG provides hygienic, nutritious milk and milk product. In the year

1983 Operation Flood – II scheme was launched, the main objectives of the

Operation Flood were following-

 To collect the milk directly from the producers (Villagers through

society).

 To insure the supply of quality milk collected from the villagers

which being sold in the market area of city.

 To save the producers, villagers and the customers from the middle

man.

 The milk is collected firstly to the society level then it comes to

D.U.S.S. level finely it comes under the state level i.e. federation.

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 BJECTIVES OF THE STUDY

1. To find out sale of Parag milk in Lucknow.

2. To find out customer satisfaction level regarding Parag milk.
3. To identify various factor which motivates people to use Parag milk .
4. To discover the main reason beyond shifting of customer from Parag
milk to other brands.
5. To find out experience of customer with Parag products.
6. To find out necessity of more Parag ATM booths.

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 Chapter-2

Organization Structure& Marketing Strategy

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I. Organization Structure& Marketing Strategy

PCDF's management is headed by the Board of Directors, members of

which are elected from Milk Union Boards. The Managing Director is the

chief executive of the Federation. The Federation has the overall

responsibility for the planning policies, mobilization and utilization of

financial resources, member and public relations as well as liaison with

agencies of the state and central government, financing institutions etc.

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II. Products of Company

S.no. Product Packing

1.0 Liquid Milk

1.1 PARAG Gold (F.C.M.) 5 Ltr, 1 Ltr, 500 ML

1.2 PARAG TAZA (Tonned) 1 Ltr, 500 ML, 180 ML

1.3 PARAG LITE (DTM) 500 ML, 200 ML

1.4 Parag Super Milk 500 ML

1.5 HomoganisedStanderd Milk Loose

1.6 Standerd Milk (Loose) Loose

2.0 GHEE

2.1 Poly Pack 1000 ML, 500ML, 200 ML

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2.2 Sika Pack 1000 ML, 500ML

2.3 Tin (Agmark& Non Agmark) 15 Kg

3.0 Table Butter 500Gm,100Gm,50Gm,20Gm

4.0 Paneer 1 Kg, 200 gm, 100 gm

5.0 Peda 250 gm

6.1 Sweet 200 ml, 100 ml

6.2 Plain 200 ml, 100 ml

7.0 Flavoured Milk 200 ml, 100 ml

7.1 Plain 200 ml

7.2 UHT 200 ml

8.0 Curd Milk (Mattha) 200 ml

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9.0 Chhach 500 ml

10.0 Kheer 100 gm

10.1 Rice kheer 100 ml

10.2 Chhenakheer 100 ml

11.0 BesanLaddoo 250 gm

12.0 Khoya 1 Kg, 500 gm

13.0 Rasgolla 1 Kg, 500 gm, 200 gm

14.0 GulabJamun 1 Kg, 500 gm, 200 gm

15.0 Kalakand 1 Kg, 500 gm, 250 gm

16.0 Rajbhog 500 gm, 250 gm

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III. Product Nutritional Value

1. BUTTER:

It contains less than 80% milk fat and more than 15% moisture and high

acidity. It is prepared exclusively from milk cream of curd of cow or

buffalo milk with out the addition of salt, color or any preservative and is

intended for cooking or for preparation of ghee.

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2. GHEE:

About 43 % of total quality of milk produced in India is manufactured first

in to butter and then converted into ghee. Bulk of ghee derived from

buffalo milk because it is richer in fat that cow milk. In Parag surplus

butter is melted in steam jacket kettles. Which are equipped with

mechanical stirrers and heated with steam till the moisture is removed.

3. PANEER:

In Paragpaneer is produced by the traditional method in which citric acid

is added to the boiled milk and the milk immediately gets adulterated and

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water is separated and paneer is obtained. It contains less than 50% fat of

more than 60% of moisture.

4.OTHERS:

Skimmed milk powder, cake and khoya are other products produced by

Parag.

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5. FUTURE PRODUCTS:

Some new products like coffee power, ready to make ice-cream powder,

baby food and other milk drinks are in testing stages.

6. PARAG’S MILK PRODUCTS:

Butter available in 20gm, 100 gm and 500 gm packs.

Pure ghee available ½ kg.

Paneer available in 100 gm.

Skimmed milk powder - in 500 gm. cartons & 200 & 500 gm. plastic bottles

43 | P a g e
V

Formatted: Font: 8 pt

. Rate of Parag’s Product

44 | P a g e
PRODUCT’S NAME WEIGHT(ML/GM/KG) PRICE RATE
MILK 200ML Rs. 5.00
MEETA DAHI 200ML Rs. 13.00
SADA DAHI 200ML Rs. 12.00
CHAVAL KHEER 100ML Rs. 8.00
CHHENA KHEER 100ML Rs. 13.00
FLAVORED MILK 200ML Rs. 7.00
CHHACHH 500ML Rs. 9.00
BESAN LADDOO 250GM Rs. 60.00
PEDA 250GM Rs. 60.00
RASGULLA 200GM Rs. 36.00
RASGULLA 500GM Rs. 90.00
GULAB JAMUN 200GM Rs. 40.00
GULAB JAMUN 500GM Rs.100.00
DESHI GHEE 500GM Rs. 151.00
DESHI GHEE 1LITRE Rs. 300.00
KLAKAND 1KG Rs. 260.00
PANEER 100GM Rs. 20.00

V. Marketing Strategy

Marketing Department

V.1 Objective

The basic objective of marketing department is to deliver product on time

with strong supply chain management and control the product price

45 | P a g e
because it is most important aspect for consumer otherwise they will

switch to another brand products

V.2 About the Marketing Department

The comprehensive and intensive marketing activities at DUSS Ltd

Lucknow are controlled by the marketing manager. All the marketing staff

goes every day in the market (morning and evening), supervises the

distribution of milk and milk products, the distribution done through milk

van in whole Lucknow city.

The route in-charge or super-visitor duty is to see whether the milk and the

milk product are properly distributed to the agents of Parag in due proper

time. To observe the market trends the competitor activities, the difficulty

of the market. They try to penetrate the new market area where the agent

of Parag does not exist. They also supervise whether the rates decided by

the company is as it is executed in the market or not. They also supervise

whether the behaviour of the transporter is suitable to the agent as well, as

the customers all the activities which are done by the marketing supervisor

are feed back to the manager marketing and GM of the unit.

46 | P a g e
At present the distribution of the milk and milk product is done through 20

TATA 407 vehicles which are agreement by the company. Presently two

insulated vans are supplying the milk and the milk products. There are ten

retail points of Parag. The agent of Parag take milk and milk product

according to the demand through the supplier of the Parag van, the

distribution is done in the evening and morning.Insulated vans maintain

lowest temperature up to the customers.Lucknow unit supply hygienic,

fresh milk through the milk vans. Lucknow is the first unit which is selling

directly to the customer, door to door three loose milk tankers.

VI. Marketing Mix

In market as there many types of products are available so it becomes

difficult for the marketers to pursue the right segment market so that they

can position product effectively to target customer. In order for this they

use mix of tools of marketing, which is known as marketing mix.

47 | P a g e
Marketing mix is a set of marketing tools that the firm uses to pursue its

marketing objectives in the target market. These tools can be classified

broadly into 4 P’s of marketing:

 Product

 Price

 Place

 Promotion

Why SCM strategy is important for an Organization?

Supply chain management strategies are the critical backbone to Business

Organizations today. Effective Market coverage, availability of products at

locations which hold the key to revenue recognition depends upon the

effectiveness of supply chain strategy rolled out. Transportation network

design and management assume importance to support sales and

marketing strategy.

48 | P a g e
Supply chain Management encompasses, planning, design, control and

implementation of all business processes related to procurement,

manufacturing, distribution and sales order fulfilment functions of a

business.

VI.1 Distribution Strategy:-

Distribution of milk should be more through retailers or direct from the

company. Company adopts a new distribution channel as home delivery

because the time is most important.

VI.2 Promotional Strategy

a) Pulling strategy

49 | P a g e
The Company should use sales promotion method to attract the consumers

like off discount coupons, poster of pleasing personality and creative

advertisement of Parag should be given on television and radio.

Advertising plays an important role in creating image and top of mind

awareness.

b) Pushing strategy

As retailer play an important role in promoting the products to the end

users, so schemes and prize should be given as incentives for achieving

high performance. This will help in providing the required push for the

product. Special display of Parag at outlets should be done to attract the

consumer to the final purchasing decisions are made at the point of

purchase. The retailers are not satisfied with the commission providing by

Parag Company so company must increase commission on sale.

50 | P a g e
VI.3 Pricing Strategy

Dugdh Sangh should make a strategy to analyze the consumer’s capability

and then set accordingly prices. Dugdh Sangh should make its products

keeping in the mind of consumer’s wants and demand because in today’s

marketing concept Consumer is a king´. Marketing of products should be

consumer oriented i.e. marketing of goods and services according to the

needs and wants of consumers. The management of the company should

visit the market on a periodical base to give the direct feedback on the

market equation. The company must provide training and refrigerator to

their good retailers. Facility of replacement of milk is very time consuming

51 | P a g e
so company must provide an inspector who has full power to replace

the milk at the retail point.

52 | P a g e
 Chapter-3

Research Methodology

53 | P a g e
 I. METHODOLOGY OF THE STUDY

Research:

The study of research method provides you with the knowledge and skills

you need to solve the problem and meet the challenge of the fact based

decision. Marketing environment I define business research as a systematic

enquiry whose objective is to provide information to solve managerial

problem.

1. MARKETING RESEARCH SYSYEM.

2. MARKETING RESEARCH PROCESS.

3. STATEMENT OF PROBLEM.

4. RESEARCH OBJECTIVES.

5. PRELIMINARY INVESTIGATION.

6. FOCUS ON STUDY.

54 | P a g e
 7. STUDY DESIGN.

8. SAMPLING.

9. NATURE OF DATA.

10.MEANS OF DATA COLLECTION.

11.SURVEY INSTRUMENT.

12. PROCESS OF DATA COLLECTION.

I.1 Statement of the Problem:

The study aims at finding the institutional consumer behavior. The

research problem investigated here in has been precisely defined as

conducting “Consumer Satisfaction and Sale of Parag milk in Lucknow”.

I.2 Focus of study:

This study is mainly focus on:-

55 | P a g e
 1. The satisfaction level of consumer. The study based on the

feedback collection from the filled questionnaire.

2. Whether the consumer is satisfied with the supplied product or

not.

3. If customer is satisfied up to what extent & if is not satisfied why,

what is reason behind this.

I. Data Collection Method

Collection of data:

II.1 Secondary data:

Secondary data is what the researcher collects from different sources. It

also helped me to get elaborate information to do my research.

56 | P a g e
  Book

 Magazines

 Internet

 Company annual reports

 Research papers

 Govt. publications

 Past records and files

Journal and periodicals are pertaining to different brands and segments of

milk.

II.2 Primary data:

The primary data have been collected with the help of a questionnaire

prepared specially for the consumers to be administered for their

responses.

o Questionnaire survey

III. Sampling Size

III.1 Sampling:

57 | P a g e
 I used random sampling because from a finite population refer to

that method of sample selection which gives each of possible sample

of combination an equal probability of being picked up and each item

in the entire population to have an equal chance of being included in

the sample.

III.2 Sample:-

 .The data has been collected by selecting a sample size of 50

consumers and various sampling techniques has been used to collect

data

58 | P a g e
 Chapter-4

Data Analysis & Interpretation

59 | P a g e
Q1. Number of the family members?

a) Two (4%) c)Four (36%)

b) Three (8%) d)More Than Four

(52%)

60 | P a g e
 Table no.-1
60

50

40

30

20

10

0
Two Three Four More than four

Interpretation-

4% families are having 2 members,8% families are having 3 members,36%

families are having 4 members and 52% families are having more than 4

members.

61 | P a g e
Q2. Family income annually?

a) Less than 100000 ( 41% )

b) 100000-300000 ( 52% )

c) 300000-500000 ( 7% )

d) Above 500000 ( 0% )

Table no.-2
60

50

40

30

20

10

0
Less than 100000 100000-300000 300000-500000 Above 500000

62 | P a g e
Interpretation-

41% families have annual income less than 100000, 52% families have

annual income between 100000 to 300000, 7% families have annual income

between 300000 to 500000 and 0% having annual income above 500000.

63 | P a g e
Q3. Consumption of milk in your family in liters?

a) One litre ( 61% )

b) 1.5 litres ( 21% )

c) Two litres ( 11% )

d) More than two litres ( 7% )

Table no.-3
70

60

50

40

30

20

10

0
One liter 1.5 liters Two liters More than two liters

64 | P a g e
Interpretation-

61% family uses 1 liter, 21% families uses 1.5 liter, 11% families uses 2 liters

and 7%families uses more than 2 liters of milk.

Q4.Which type of the milk do you take?

a) Packed( 62% )

b) Loose( 38% )

65 | P a g e
 Table no.-4
70

60

50

40

30

20

10

0
Loose Packed

Interpretation-

62% use packed milk and 38% use loose milk.

Q5. If you like packed then which brand of milk do you like?

a) Parag( 25% )

66 | P a g e
 b) Amul( 20% )

c) Namaste India( 12% )

d) Others( 5% )

Table no.-5
30

25

20

15

10

0
Parag Amul Namste india Others

Interpretation-

25% customers use parag brand, 20% use amul, 10% use Namaste India

and 10% use other brand.

67 | P a g e
Q6. What type of Parag milk do you use?

a) Standardized (15%)

b) Full cream (35%)

c) Toned milk (30%)

d) Loose milk (20%)

Table no.-6
40

35

30

25

20

15

10

0
Standardized Full Cream Toned Milk Loose Milk

Interpretation-

68 | P a g e
15% customers use standardized milk, 35% use full cream milk, 30% use

toned milk and 20% use loose milk.

Q7.Quality of Parag milk?

a) Good (45%)

b) Average (50%)

c) Poor (10%)

Table no:-7
60

50

40

30

20

10

0
Good Average Poor

69 | P a g e
Interpretation-

45% customers said parag milk quality is good, 50 % said average and 10%

said poor.

Q8.Availability of Parag milk?

a) Easily ( 65% )

b) Not easily ( 35% )

Table no:-8
70

60

50

40

30

20

10

0
Easily Not easily

70 | P a g e
Interpretation-

65% customers said parag milk is easily available while 35% customers said

not easily available.

Q9. Do you recognize Parag logo?

a) Yes( 67% )

b) No( 33% )

71 | P a g e
 Table no.-9
80

70

60

50

40

30

20

10

0
Yes No

Interpretation-

67% customers recognize the parag logo while 33% do not.

Q10. Reason for using Parag?

a) Quality (40%)

72 | P a g e
 b) Price (35%)

c) Availability (25%)

Table no:-10
45

40

35

30

25

20

15

10

0
Quality Price Availabity

Interpretation-

The reason that causes the consumers to purchase the PARAG product 40%

quality of the product, 35% price of the product and 25% the availability of

the product.

73 | P a g e
Q11. Do you switch from one brand to another?

a) Yes( 40% )

b) No( 60% )

Table no.-11
70

60

50

40

30

20

10

0
Yes No

Interpretation-

74 | P a g e
40% consumer switch to other product, while 60% consumers do not

switch to other brand product.

Q12. Overall your experience with Parag?

a) Good( 60% )

b) Average( 30% )

c) Poor( 10% )

Table no.-12
70

60

50

40

30

20

10

0
Good Average Poor

75 | P a g e
Interpretation:-

60% customers responded with answer good, 30% customers responded

with average, 10% customer’s responded poor.

Q13. Do you want more number of PARAG booths to be set up in your

location?

a) Yes ( 65% )

b) No ( 35% )

76 | P a g e
 Table no.-13
70

60

50

40

30

20

10

0
Yes No

Interpretation-

65% of consumer wants more number of PARAG booths near their location

while 35% consumer responded in negative.

14.Do you check the expiry date of PARAG product, before buying these?

77 | P a g e
 a) Yes ( 70%)

b) No ( 30% )

Table no.-14
80

70

60

50

40

30

20

10

0
Yes No

Interpretation-

70% consumers check the expiry date before buying product, while 30% are

not.

78 | P a g e
 Problems

Major Problems

 Lack of information for export/import milk.

 Lack of infrastructure for scientific research, testing conformity

assessment and Equivalence

 Technological updating as per requirement of marketing.

 Storage of milk and distribution capacity is at small scale.

 Fund availability as per requirement of marketing and others

resources purchasing

 Human resource as per requirement Availability such as techno-

chemical founder, Operator etc.

Marketing problem
79 | P a g e
1. There is no proper product price strategy adopted, so by this,

Customer mind setup about product price changes because it is

Parag carelessness that they increase or decrease the product price

from time to time so by this customer got confused and jump to

another Brand like Amul, Gyan, Mother dairy product.

2. Awareness (customer) about Parag brand value.

3. Promotion advertisement, packaging.

4. No preference for market research.

5. No time management only concept to produce and provide product.

6. No brand aBBAssador.

7. Not covering all the Government departments by Parag booth

because Parag is government sector plant so at least it covers all

government employee /officers.

8. No recruitment standardization and no specialist are recruited.

9. No technology implementation, mostly work is performed manually,

so time wastage is higher and higher, consumption of energy is also

higher.

80 | P a g e
10. There is no relationship between shopkeeper/wholesaler for marketing

or distribution because they have mind set-up to sell their products

only. If they have relationship than the shopkeeper/wholesaler will

not jump to another Brand (Amul, Mother dairy) because it is not

possible for Parag to open their booths in every area so they must

have relationship between them to local seller.

81 | P a g e
 Chapter-5

Conclusion & Findings

82 | P a g e
I. Findings

In Lucknow competitors like Amul, Gyanmlik and private milk product

are present. Among all Amul are the strongest competitors in the field of

butter and milk while Anik and Parag sell ghee but in the field of packed

milk Parag is lacking behind. If brand like Amul are not taken seriously

definitely after few span of time they can take much share of Parag. So

Parag should take this matter seriously. The supply of private milk product

is not constant.

I.1 Findings customer enquiry:

1. Most of the customers associate themselves with Parag milk.

83 | P a g e
 2. Parag product is sold more than other.

3. Retailer if provided more cooling equipment promises to stock more

Parag product.

4. Customers have problem of lack of advertising material, scheme

related material of Parag.

5. Retailers are more interested in products of those companies, which

offer more margins to them.

I.2 Findings of Advertisement:

 Mainly Parag in Lucknow is not making advertisement.

 Stickers, bunting, Dangles.

 Hoardings.

 Glow sign.

 Poster.

 Newspaper and Magazines.

 Wall painting.

I.3 Findings of price:

84 | P a g e
Parag has increased the cost of skimmed, toned and lose milk by Rs 2 per

litre. These will now cost Rs 20, 28 and 30 respectively. The rate of full

cream milk has not been changed. But it is already beyond the reach of

many at Rs 36 per litre. The cooperative has introduced a new brand, super

standard milk (Rs 32 per litre), to compensate for high rates of full cream

milk.

85 | P a g e
Conclusion:-

Today Parag is a well known industry in milk selling in U.P., every

consumer & every retailer is aware about Parag poly-pack milk.

Consumer are willing to buy the parag indigenous product and they show

interest in parag brand, but due to non-regular availability of their existing

products they think to buy another company product, in case of Ghee,

Table Butter, Paneer they first prefer “Parag” brand but due to non-regular

availability they go for another company product. i.e.

In case of Ghee at the time non-availability they go for Godhan, Krishna, or

pack provided by retailer etc.

In case of Table butter they are likely to buy “ Amul ” brand because it is

regular available, obviously few time ago it was @1.00 more than Parag,

but now price is equal, also Parag’s butter is not available at every shop-

keeper.

Consumer is likely to buy “Parag “product and they trust on “Parag”

But as per the market survey, awareness of indigenous product of Parag

brand is too little, thus in the first part consumer prefer to cable T.V.

86 | P a g e
advertisement /news-paper, advertisement for increasing the sale,

secondly they want readily availability of Parag indigenous products, i.e.

regular availability on shops, retail counters etc.

87 | P a g e
 Chapter-6

Suggestions and

Recommendations

88 | P a g e
 SUGGESTIONS

The employee welfare scheme should be revised and it should consider the suggestions and

recommendations by the employees of the dairy.

The dairy should introduce an incentive policy which motivates the employees to give their

best to the dairy.

Government insurance policy is also need a revision in order to provide more benefits to the

employees of the dairy.

Extracurricular activities should be organized in the dairy after a fixed time period so that

the employees can groom their personality.

Annual function should be organized on every year.

Pension policy should be made for the employees.

89 | P a g e
LIMITATIONS OF THE STUDY

90 | P a g e
Limitations:-

Nothing in this universe is free from limitations and present project is not

an exception to it. Due to certain restrictions on the part of potential

customers as well as actual customers and suppressed and based responses

from them, appropriate figure for relevant data and their interpretation

precisely this has been my personal experience while carrying out the

present study. Some of the limitations I found and difficulties encountered

can be enumerated as under: The study was conducted in the lucknow,

only so the area of research was limited which may affect the research

conclusion slightly.

Annual report and journals in the company was not readily available. Due

to time and budgetary constraint, the sample size was restricted. The sales

man at the outlets showed their discontent with the tight schedule.

People of the region were not concise about the survey, so they were not

much supportive.

Near about 30% population takes the service of servants to bring their

milk. From market and reason for their brand selection was not known.

91 | P a g e
Many people do not know themselves why they use any particular brand

as their answer was “we use ………..brand because we like it” so the actual

reason behind their liking was not conformed. People not interested to fill

questionnaire as they think it wastage of time, this is again because of less

scope of research of India.

92 | P a g e
 BIBLIOGRAPHY

Some of the website and magazines referred by me to complete

this project.

Websites:-

 www.scribd.com

 www.google.com

Magazines:-

 Companies Brochures & Manuals.

 Magazines

 Business Today

Books:-

 Marketing Research - G.C Beri

 Marketing Management- Philip Kotler

Marketing Management- V.S Ramaswamy & S. Namakumari

93 | P a g e
QUESTIONNAIRE

94 | P a g e
 Questionnaire

Name-...............................

Address-...........................

Mobile no-.......................

Occupation -.....................

Q1. Number of the family members?

a) Two c)Four

b) Three d)More Than Four

Q2. Family income annually?

a) Less than 100000

95 | P a g e
 b) 100000-300000

c) 300000-500000

d) Above 500000

Q3. Consumption of milk in your family in liters?

a) One liter

b) 1.5 liters

c) Two liters

d) More than two liters

Q4.Which type of the milk do you take?

a) Packed

b) Loose

96 | P a g e
Q5. If you like packed then which brand of milk do you like?

a) Parag

b) Amul

c) Namaste India

d) Others

Q6. What type of Parag milk do you use?

a) Standardized

b) Full cream

c) Toned milk

d) Loose milk

Q7.Quality of Parag milk?

a) Good

b) Average

c) Poor

Q8.Availability of Parag milk?

97 | P a g e
 a) Easily

b) Not easily

Q9. Do you recognize Parag logo?

a) Yes

b) No

Q10. Reason for using Parag?

a) Quality

b)Price

c)Availability

Q11. Do you switch from one brand to another?

a) Yes

b) No

Q12. Overall your experience with Parag?

a) Good

b) Average
98 | P a g e
 c) Poor

Q13. Do you want more number of PARAG booths to be set up in your

location?

a) Yes

b) No

Q14.Do you check the expiry date of PARAG product, before buying these?

a)Yes

b)No

99 | P a g e
 BIBLIOGRAPHY

Formatted: Centered
Some of the website and magazines referred by me to complete

this project.

Websites:-

 www.scribd.com Formatted: Centered, Add space between paragraphs of the

same style

 www.google.com

Formatted: Centered
Magazines:-

 Companies Brochures & Manuals. Formatted: Centered, Add space between paragraphs of the
same style

 Magazines

 Business Today

Formatted: Centered
Books:-

 Marketing Research - G.C Beri Formatted: Centered, Add space between paragraphs of the
same style

 Marketing Management- Philip Kotler

100 | P a g e
 Marketing Management- V.S Ramaswamy & S.

Namakumari

 Formatted: List Paragraph, Centered, Bulleted + Level: 1 +

Aligned at: 0.75" + Indent at: 1"

Formatted: Centered, Add space between paragraphs of the

same style, Line spacing: Double

101 | P a g e