SUMMER TRAINING PROJECT REPORT ON

MARKET ANALYSIS AND SALES DEVELOPMENT OF PARAS MILK IN LUCKNOW CITY

Prepared and Presented to

Under the guidance of

Mr. Saurabh Saxena Area Sales Manager Paras

Submitted in partial fulfillment for the award of degree of Master of Business Administration from Uttar Pradesh Technical University, Lucknow BY

Anil Kumar 1212470020

INSTITUTE OF CO-OPERATIVE & CORPORATE MANAGEMENT, RESEARCH AND TRAINING

21/467, RING ROAD, INDIRA NAGAR, LUCKNOW-226016

Phone: 2716431, 2716092 Fax: (0522) 2716092 E-mail: info@iccmrt.ac.in Website: www.iccmrt.ac.in

Institute of Co-operative & Corporate Management, Research and Training

467, Sector-21, Ring Road, Indira Nagar, Lucknow-226 016

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467] lsDVj&21] fjaxjksM] bfUnjkuxj] y[ku&226 016 CERTIFICATE
This is to certify that Mr. Anil Kumar, a student of Master of Business Administration (MBA) Programme (Batch 2012-14) at this Institute has undergone a Summer Training in the V.R.S. FOODS LTD.,Paras Dairy Lucknow.15 .06.2013 to 31.07.2013 and carried out a study titled

Market

Analysis and Sales development of Paras Milk In Lucknow City

He has prepared a report on the study carried out by him in the organization.

(Dr. Namita Srivastava) Associate Professor/ Faculty mentor Certified

(Prof. Ajay Prakash) Principal, ICCMRT

DECLARATION

I hereby declare that the following project report titled MARKET ANALYSIS & SALES D E V E L O P M E N T OF PARAS M I L K at V.R.S Foods Ltd., Lucknow is an authentic work done by me. It

is to the best of my knowledge and belief. This is to declare that all my work indulged in the completion of this Project Report such as research , competitor analysis and sales promotion is a profound and honest work of mine.

Date:

Signature Anand Kumar Gautam

ACKNOWLEDGEMENT
With immense pleasure , I would like to present this project report for V.R.S Foods Ltd. It has been an enriching experience for me to undergo my summer training at V.R.S Foods Ltd., which would not have possible without the goodwill and support of the people around. As a student of Institute of Co-operative & Corporate Management, Research & Training , Lucknow I would like to express my sincere thanks to all those who helped me during my training program. I would like to express my gratitude to all those who gave me the

encouragement to complete this project. I would like to thank my college authorities and Principal Dr .Ajay Prakash, for providing me the opportunity to work with the one prestigious organization. I would like to give my heartily gratitude to the Mr. Saurabh Saxena, Area Sales Manager (Marketing), V.R.S Foods Ltd., Lucknow for having given me the opportunity to do my project work in the organization and lighted my way of progress with his guidance. My sincere and deepest thanks to Dr. Namita Srivastava , Faculty Member of Institute of Co-operative & Corporate Management, Research & Training for having executing spared his valuable time with me and for all the guidance given in the project as per requirements. I would like to give my special

thanks to my parents , their love , support and blessing enabled me to complete this Project work.

However , I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

PREFACE
The M.B.A programme is well structured and integrated course of business studies. The main objective of practical training at M.B.A level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps industrial environment and to gain real life knowledge about the

business

practices. The M.B.A programme provides

student with a fundamental knowledge of business and organizational functions and activities , as well as an exposure to strategic thinking of management. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry , which would , in return, help me in the future when I will enter the practical field. Training is an integral part of M.B.A and each and every student has to undergo the training for 6 weeks in a company and then prepare a project report on the same after the completion of training. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. In todays globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have

practical knowledge, which would help an individual in his/her carrier activities

and it is true that Experience is best teacher.

-: CONTENTS :-

Sr. No.

Subject

Page No.

1 2 3 4 5 6 7 8 9 10 11 12

EXECUTIVE SUMMARY INTRODUCTION INDUSTRY & COMPANY PROFILE OBJECTIVE & SCOPE OF STUDY RESEARCH METHODOLOGY DATA PROCESSING & ANALYSIS OBSERVATION & FINDINGS LIMITATIONS CONCLUSION SUGGESTION & RECOMMENDATION BIBLIOGRAPHY ANNEXURE

80 13 18 58 60 70 87 91 93
95

103 105

INTRODUCTION

1.1

CONTEXT OF THE TOPIC:

The dairy industries companies run mainly on the factors such as

availability, service frequency, affordability, taste and marketing. Availability plays a vital role because purchasing power is depend and retailers upon availability of

that product, in case distributors

service matter a lot. Retailing

includes all the activity in selling goods or service directly to the customers or personal nonbusiness use . A retailer or retail store is any business enterprises whose sales volume comes primarily from retailing .

Retailers are the part of milk marketing channels and perform the work of moving goods from place and possession producers to the customers. It overcomes the time,

gap that separates goods

and service from those who

needs or wants them. Retailers as member of marketing channel perform a number of key functions. Some functions ( physical, title, promotion ) constitute a forward flow of activity from the company to the customers; other

functions ( ordering and payment ) constitute a backward flow from customers to the company. Still others ( information , negotiation , finance and risk taking ) in both directions.

The project delves into the workings from the distribution aspect of an FMCG organization, in detail. PARAS, being an FMCG company, attaches a lot of

significance to the distribution aspect of its business. The distribution channel of PARAS holds a lot of potential in affecting the demand or sales of PARAS

products through delivery on time, delivery of variety of products, the retailer friendliness of the policies being set by the distributors and equitable

distribution of products to all the retail outlets in a particular region, to name a few.

So, in order to plan retail coverage we map out the positions of Paras outlets and competitors outlets. This project was carried out in Lucknow city. For analyzing divided and presenting information that is tied to geographical location, we the city in different wards. By analyzing geographical representation

and sales

data with spatial distribution Paras outlets, competitors outlets and

the density of others in an area, we identify unexplored area and plan location outlets to increase its market penetration. Using such research we can ascertain the quality and depth of retail penetration in specific area.

Addition to this we carried out sales promotion

activity through discount

coupons. Sales promotion consists of diverse collection of incentive tools, most short-term designed to stimulate and/or greater purchase of a particular product by consumers or the trade . Whereas advertise offers a reason to buy, sales

promotion offers incentive to buy . Sales promotion includes tools for consumer promotion ( for example samples, coupons, prizes, cash refund, warranties,

demonstrations, contest ); trade promotion ( for example buying allowance, free goods, merchandise allowances, co-operative advertising, advertising and display

allowances, dealer sales contests ); sales force promotion ( for example bonuses, contests, sales rallies ).

Sales

promotion

efforts are

directed at final consumers and

designed to

motivate, persuade and remind them of the goods and receives that are offered.

1.2

Promotion Tool Used:

promotion tools mean the promotion activities, which are

The consumer beneficial

for consumers as well as company. Such as price discounts, samples,

cash refund, premiums, prizes, cross promotion and coupons etc. We decided to use discount coupons. We distributed it among customers and validity kept seven days from issued.

The consumers are seduced to buy the product.

It helped to increase sales volume.

Consumer can get good quality of good in cheaper price.

It can attract the new consumers and customers buying other

milk brands.

Attract brand switchers, who are primarily looking for low

price, good value or premiums.

Turn switcher to loyal users,

It induced to make some subsequent purchases.

Give little permanent gain in market share.

1.3

Need of Study:
Managers are always curious about the position of their companys

products in the market which largely depend upon the companys goodwill, and the position of their brand. In order to maximize the sale and profit, company must deliver outstanding satisfaction to the retailers, wholesaler & customers. So market survey of retailers, wholesalers & customers, chart out the position of the company as compared to the competitors. It helps the organization to find out the brand being sold most by the retailers along with their stocking and also consumer buying preferences.

1.4

Statement of The Problem:

MARKET ANALYSIS & SALES DEVELOPMENT OF PARAS MILK IN LUCKNOW CITY

It helps to study all activities which can be used to influence large number of customers so as to increase the sales of the Paras milk effectively.

INDUSTRY & COMPANY PROFILE

2.1 Industry Profile:-

2.1.1 The World Dairy Situation:

According to International Dairy Federation (IDF) on World Dairy Situation 2011 World farm milk production in 2010 grew by 1.8 percent. Milk from dairy cows, which represents 83 percent of the world total farm milk production of 721 million metric tons (mmt), grew by 1.6 percent in 2010, while buffalo milk production grew by 3.1 percent (and accounts for 13 percent of total world farm milk production). This growth in farm milk resulted in increases in world processed production of all major dairy products.

After decreasing slightly in 2009, global per capita milk and dairy production grew by 1 percent in 2010 to average 104.6 kilograms (milk equivalent). World regions with the largest share of world milk consumption include Asia ( 39 percent of global dairy consumption ), Europe ( 29 percent ) and North America ( 13 percent ). However, according to the IDF report, South America experienced the largest rate of growth in dairy consumption followed by Asia.

World trade in dairy products continues to grow and in 2010 accounted for over 7 percent of farm milk production , or 51.9 million metric tons mmt. This was an increase of 9 percent above the previous year. Most of these dairy products in world trade came from the top 4 exporters, with the European Union, New

Zealand, United States and Australia accounting for 73 percent of world dairy exports.

World dairy market prices in 2010 and early 2011 recovered from the lower levels seen in late 2008 and early 2009. IDF reports that farm milk prices in the United States in 2010 were 27 percent higher than year-earlier and increased 22 percent in New Zealand and 15 percent in the European Union.

2.1.2 Indian Dairy Industry - A Profile:

Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu are the milk surplus states in India. The manufacturing of milk products is obviously high in these milk surplus States. Exports of dairy products have been growing at the rate of 25% per annum in the terms of

quantity terms and 28 % in terms of value since 2001. Significant investment opportunities exist for the manufacturing of value-added milk products like milk powder, packaged milk, butter, ghee, cheese and ready-to -drink milk products.

India has emerged as the largest milk producing country in the world with present level of annual milk production estimated as 94.5 million tonnes. We expect a production level of 135 million tonnes by the year 2015. India has a large

livestock population base constituting 278 million livestock including 180.5 million cattle, 82.8 million buffaloes, 4 million sheep and 9.2 million goats. The livestock population is projected to increase to 322 million by the year 2015.

India, with some 27 per cent of Asia's population, accounts for more than half of the milk output with enough growth potential to explore foreign markets . In anticipation of the export opportunities and in view of the post GATT

scenario, India is gearing up to tackle the demands of the international market. Indian companies are preparing themselves to meet international standards and other non-tariff barriers. Planners are taking measures to meet the sanitary and phyto sanitary specifications - prescribed by Office International des

Epizooties (OIE) under the auspices of the World Trade Organization (WTO) -, which range from the quality assurance of processed dairy products to the health status of livestock.

2.1.3 Major Players Of Indian Dairy Industry:

The dairy industry is dominated by the co-operative sector. About 60% of the installed processing capacity is in the co-operative Development Board (NDDB) is a major player sector .The National Dairy

in the market with its major

brand, Amul. Leading brands like Amul, Nestle, Mother Dairy and Britannia are in the race to tap the growing market. Smith Kline Beecham Consumer Healthcare , Nestl India and Heinz India are amongst the large MNCs that dominate the high-value milk products market. Other players include Indian a Dairy Specialties, Jagatjit Industries Ltd and

various other state cooperatives.

The chains

milk and dairy products segment is set for up gradation of for

cold-storage

expansion. Mother Dairy, a wholly owned subsidiary of National

Dairy Development Board plans to make strong presence in the market of milk and milk products under the Mother Dairy brand through retail outlets across the country in addition to its own 300 outlets with provision of cold storage and cold chains.

LACTOSE REGULAR LITE NUTRITION IN MILK

PARAS SHOPPE

MILK PROCUREMENT
Milk Production in India

Production in India Per Capita Availability Year Production (Million Tonnes) (gms/day) 199155.7 92 199258.0 93 199360.6 94 199463.8 95 199566.2 96 199669.1 97 199772.1 98 199875.4 99 213 207 202 197 194 187 182 178

199978.3 2000 200080.6 01 200184.4 02 200286.2 03 200388.1 04 200490.7 05 2005229 231 230 225 220 217

220 94.6

06

2.2 The Organization:2.2.1 Overview :

PARASs history reflects back to 1960, when the procurement of milk started with 60 Liters of milk. The only fundamental that worked right from day one is the quality, which got reinforced everyday of progress. Ch. Ved Ram, the

founder and promoter of our company is one of the connoisseurs in the dairy farm industry. Ved Ram & Sons started as our partnership company in April

1986. Our first unit was established in 1987 under company's name VRS Foods Limited and since then In tune with the rapidly changing technology, production

units are well armed with the latest equipment. These facilities enable us to cater to the needs of our clients by selling over 2, 50,000 liters of milk per day in Delhi Metro.

MILK gets its unique , great taste from dedication to monitoring quality, special care, and attention to detail in the processing and packaging steps of

production. Through our careful processing and packaging, we have been able to retain great taste. We're still delivering bright and early. What's more, we stick to what got us here ...Lifelong commitment to quality and service.

We've built a bigger, better facility, expanded our product line and opened retail stores. Whether we deliver right to your door, or you visit one of

our dairy stores , you can be confident that our quality and service will always be "The Best". We believe that milk should taste just like milk- pure and simple. We don't believe in adding anything to our milk.

Quality is believed to be a dynamic process

which requires

continuous

monitoring and up gradation . Thus it is our constant endeavor to make quality an integral part of the entire value chain rather than the end point.

At the heart of the entire network of collection centers covering 5000

Paras are across

hundreds of Western

Village level Haryana,

villages

U.P.,

Rajasthan, Maharashtra and Gujarat from where the milk is collected everyday. The farmers are not only helped in Finance but also in buying cattle, feed,

providing veterinary services and other infrastructure supports . The trust of the farmers has grown stronger and so has the network.

There

is continuous

monitoring

and

up

gradation

of

quality.

The

stress

therefore is on ensuring sanitation and hygiene right from village the reason why every Village level collection center is equipped

level. Thats for field

testing, efficient chilling and speedy transport to processing and manufacturing facilities.

Our large manufacturing capacity at 5 different locations across most part of India is backed by an impressive distribution network, to ensure that our products find their way to every household in India.

2.2.2 Vision and Values:

Vision: PARAS will continue to grow as an FMCG major, delighting national and international customers with quality products and services.

The Values Which the Organization lives by are :-

Trust Opinions Commitment Integrity Growth Orientation Quality Value for Money Customers Orientation

2.2.3 Quality Assurance:

DEFINING QUALITY :

Quality is an outcome of intelligent efforts and a strong will to produce

superior and safe food articles of internationally accepted standard . Customer satisfaction is at the focus of the latest international standards

for quality Quality as defined by the international organization for standardization is

" the totality of features and characteristics of a product and service that bears on its ability to satisfy stated or implied needs.

Paras fresh milk represents Good Hygienic Quality at source of milk collection. Paras Milk is collected from milk sheds of western UP belt with stringent quality control that ensures clean hands, clean utensils, clean hygienic sanitation at the time of milking the milch cattle, during storage and transportation to chilling centers, on way to hi-tech ISO 9001 and HACCP certified Paras Milk Plants at Gulaothi and Sahibabad.

The quality is been certified by

ISO 9001 HALAL Assured HACCP Food and Drug Administration (FDA) APEDA Govt. Of India

QUALITY OF MILK

1. Nutritional or compositional quality Fat & SNF, protein Lactose, Minerals & vitamin Etc 2. Food Safety Quality Contamination due to feed, medicines, fertilizers, environment etc. in the milk. Microbial quality, which is a function of general health of the cattle and milk handling practices subsequent to milking the general hygiene of the farmers. 3. Sensory Quality Off - flavour, smell / flavour which consumer like / dislikes.

FACTORS INFLUCING QUALITY:

The quality of an food materials including milk & milk products is influenced by the manner in which the raw material, producer, transporter, processing , post production handling, storage consumer and regulatory environment interact each other. Good processing and handling can only help to prevent or inhibit further deterioration in quality but can not off set the harmful effects of the deterioration in terms of toxins and acids which have already been produced due to increased Bacterial Activity in the raw milk.

CONSTRAINTS IDENTIFIED IN ENSURING QUALITY

Portable water and drainage, approach road and electricity in DCS

villages Awareness among the farmers resulting in poor hygiene, sanitation &

environment condition. Inadequate microbial quality testing facilities in dairies High ambient temperature , particularly in summer resulting in faster

growth of microorganism in the milk. Longer time of storage & transportation. Cold chain for raw and pasteurized milk. Maintenance of equipments at dairy /cc like can washer, can scrubber,

flow diversion valve etc.

TYPICAL OBSERVATIONS
Mixing of "morning & evening milk" Milking the animals in dirty surrounding with cow- dung & animal urine "Storing the milk" in the house before supplying it to the society Use of " Aluminum, plastic, GI Utensils" for making the animals and

carrying the milk.

DCS Addition of neutralizers , form a lin and hydrogen peroxide in raw milk Use of plastic jerry cans at DCS level for transportation of raw milk Fat testing by Gerber method is carried out in most of the DCS Lack of Farmers participation.

STRATEGY ADOPTED
Mass awareness campaign

- CMP awareness through village level meetings, booketlets, calendars & posters - Organizing exhibitions / stalls at union / DCS level - To provide technical support for hot water system, as vessels etc - New technological supports - Sanitization of cans at DCS level

Cooling of Milk at DCS level

- Introduction of BMC - Reducing transportation time through rationalization of routes Incentives to DCS for supplying good bacteriological quality milk.

INTRODUCING NEW TECHNOLOGIES

Automatic Milk Collection Stations (AMCS)

- It helped In bringing transparency at DCS level - It has simplified the operational and day accounting activities

Bactaslyde

- Quick testing and easy to use technology for totel bacterial load and coliform load - It helps in creating awareness about bacteria among farmers, DCS Adulteration Detection Kit

- There are two adulteration kits, small and large - Small adulteration kit is used for 5 adulterants

- Large adulteration kit is used for 10 adulterants

MILK TESTING

1. ORGANOLEPTIC EVALUATION Check colour , taste and flavour of milk.

2. COB TEST:Take 2 ml of milk in a dry test tube. Boil milk on flame of spirit lamp . Formation of ppts . in the test tube indicate COB test positive.

3. ALCOHOL TEST :Take 5 ml in a test tube . Add 5 ml (60% by volume) alcohol with constant shake. Formation of ppts. indicates alcohol test positive.

4. TITRABLE ACIDITY TEST:Take 10 ml milk in 100 ml conical flask add 10 ml distilled water and 1 ml phenolphthalein solutions titrate with N/10 NAOH till fant pinkish colour appears. % TA = 0.09 X ml. of NAOH used.

5. NEUTRALIZER TEST:Take 2 ml milk rosalic acid (0.05% in 60 % alcohol), add 2 ml of milk .Rose red colour indicate neutralizer test positive.

6. UREA TEST :Take 2 ml milk in test tube , add 2 ml DMAB solution and mix the contents. Appearance of yellow colours indicates the urea test positive.

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. red colour formation indicates sugar test positive. Brick

8. STARCH TEST :Take 3 ml milk in a test tube , boil and cool under tap water and add 2 drops of 1 % Iodine solution. Appearance of blue colour indicates starch test positive.

9.HYPOCHLORITE TEST :Take 5 ml milk in test tube, add 1.5 ml of 7% potassium Iodide. Appearance of yelloish brown colour indicates hypochlorite test positive. If solution is clear add 4 ml dilute HCL (1.2) and heat the test tube at 85 degree centigrade for 1 minute. Cool and add 0.5 ml starch solution. Appearance of blue or red colour indicates presence of bleaching powder.

10. FORMALIN TEST :Take5 ml milk in a test, add 0.5 ml of 1 % ferric chloride solution. mix well and conc. sulphuric acid slowly along the side of tube. Formation of violet ring at juncture of two liquid confirms formalin test positive.

11. HYDROGEN PEROXIDE TEST :Take 5 ml milk in a test tube and add 2 drop of para phenyl diamine hydrochloride (1%). Formationof blue colour indicates hydrogen peroxide test positive.

12. B. R. TEST (40 DEGREE CENTIGRADE):-

Centrifuse the milk, take out cream plug & make ghee. Add a drop of clear fat on Butyrorafractometer prism maintained at 40 degree centigrade . Reading should be in range of 40- 43.If B.R reading taken at temperature other than 40 degree centigrade , apply the following formula:

R = R1 +0.55 (T1-40) R= B.R. reading at 40 degree centigrade R1= Observed reading at T1 T1= Temperature degree centigrade at which B.R reading taken.

13. MINERAL OIL TEST :Take 22 ml alcoholic KOH solution (0.5N) in a flask, add 1 ml of clear FAT sample. Saponify the FAT sample and add 25 ml boiling water along with the sides of flask. Keep on shaking the flask . Turbidity indicates the presence of mineral oil.

14. MBR TEST :Take 10 ml milk in a sterilized tube, add 1 ml MBR dye solution plug with a sterilized cork and invert the tube to mix contents and incubate in a water bath at 37 degree centigrade. Check the tube for decolourisation first after 10 minutes, next after 30 minutes and subsequently after every hour. MBRT is counted deleting initial 30 minutes of incubation.

15.PHOSPHATASE TEST:-

2.2.4 Milestone :
Paras is a story that has tested success by spreading awareness and economic empowerment in rural India.

Take 1 ml milk in a sterilized test tube, add 5 ml phosphatase dye . Incubate at 37 degree centigrade in a water bath. Observe the colour after 10 minutes, 30 minutes and finally after 2 hours. Yellow colour indicates the test positive perform control test also for comparision by boiling of milk sample.

16. SALT TEST :Take 1 ml milk in a test tube , add 2 drop of 10 5 potassium chromate solution . The whole solution turns canary yellow in colour. Now add 5 ml N/100 Silver nitrate and mix well .The persistance of canary yellow colour as such show the positive salt test.

2.2.4 Milestone :
Paras is a story that has tested success by spreading awareness and economic empowerment in rural India.

2.2.5 Procurement & Process:

OPERATING PROCEDURE OF MILK PROCUREMENT :

To meet out the milk requirement for manufacturing different milk products, VRS Foods Limited procures good quality milk from 3 sources:

(A). Through Franchise:

In this procedure we provide our Infrastructure for milk chilling, staff for grading & testing of milk and tankers for timely lifting of milk from MCC, to a person who procure milk on our behalf. Milk comes directly to our MCC dock, where after proper grading and testing milk is accepted.

(B). Through Supplier:

In this system, persons who have their own chilling facilities, procure milk through small vendors and after proper chilling of milk, send the milk to our dairies through their own tankers. At dairy, after proper testing on different parameters, if milk is found as per prescribed norms is accepted.

(C). Through VLC System ( Direct from producers at village level ):

Salient features of this system are as follows

(1)

Procurement and collection of milk is undertaken with most modern management systems and IT intervention. It involves use of Automatic milk collection Unit (AMCU/DPMCU). The person is selected as VSP after proper screening.

(2)

The milk is collected in both shifts i.e. morning and evening throughout the year, through the village level milk collection centers. (VLCs).

(3)

Each VLC is staffed and equipped with the following: -

One educated person called village service provider (VSP), having a minimum qualification of matriculation, from the same village, who is adequately trained in clean milk production, collection and testing of milk, dispatching and transportation of milk, operating AMCU/DPMCU, pricing of milk, record keeping and reporting etc. (4) Each VSP is required to have adequate space for collection and testing of milk, which can accommodate testing equipments, milk collection and transporting milk cans and keeping records etc. (5) Each producer is trained in hygienic milking procedure and carrying milk in a

steal bucket, with a cover on it to VLC. (6) A team of qualified and trained supervisors is engaged to supervise & monitor the activities at VLC level. They also train, guide and facilitate the VSP to accomplish his task of procuring good quality milk from the producers. (7) Milk from VLCs is brought to MCC through milk vans in 40 liter aluminum cans, as per the schedule time table so that quality of milk remains good and it is immediately chilled below 40C, to keep the quality of milk intact. (8) At dairy dock of MCC, qualified staff is deputed for proper grading and testing of milk and as per norms, only good quality of milk is accepted . (9) VRS Foods Ltd. Is already catering the demand of urban masses of milk & milk products through a net work of distributors and through door-to-door delivery system, in NCR, Delhi and western part of UP. (10) From Dairies as per the demand of market, milk & milk products are supplied through insulated vans so that quality of milk & milk products could be maintained as per norms and Govt. guidelines. (11) The left out urban areas would be covered through direct selling of milk & milk products through distributors and vendors network.

PROCESSING & LOGISTICS:

To maintain the quality of milk procured from the rural areas approximately 100 milk

chilling centers would be hired in the area of operation ( In the 5th year of operation ) so that within 2.30 hrs milk would be chilled afterprocurement.VRS Foods Ltd. Is having its processing units at Sahibabad, Gulaothi, Sandila and malanpur for providing milk and milk products to urban masses. These dairies will cater liquid milk and indigenous milk products demand of neighboring districts. These dairies are meeting the demand of butter, ghee, cheese and export quality milk products. From the dairies, milk and milk products would be transported through insulated vans to neighboring districts so that quality of milk & milk products could be maintained as per prescribed norms and guidelines.

FLOW CHART PLANNING OF MILK PROCUREMENT

MILK PROCUREMENT & PRODUCER PRICE PAID BY GCMMF

2.2.6 Presence: Domestic Market:

Delhi Haryana Himachal Pradesh Punjab Uttar Pradesh Maharashtra Rajasthan Madhya Pradesh

West Bengal Guwahati

International Market:

U.S.A North Coast Nigeria Libya Jordan Egypt Belgium Germany

U.A.E Yemen Oman Afghanistan Bangladesh Sri Lanka Singapore Philippines Japan New Zealand

2.3 List of Product Marketed:

2.3.1 Milk:
It is available in the following variants:

Full Cream Milk Toned Milk Double Toned Milk Skimmed milk (Nandan) Tea Special Milk

Paras Health (Homogenized Standardized Milk)

2.3.2 UHT Milk:

Paras milk is also available in 5 variants of 1litre and half litre poly pouch.

Fresh Milk Toned Fresh Milk - Double Toned

2.3.3 Flavoured Milk:

It comes in 6 different enticing flavours:

Elaichi Butterscoth Vanilla Kesar Chocolate Coffee

2.3.4 Chach:

Available in:

Paras Chach

2.3.5Dahi:
Available in:

400 gm Pasteurised Toned Milk Dahi 200 gm Pasteurised Toned Milk Dahi 90 gm Pasteurised Toned Milk Dahi 90 gm Low Fat Dahi

2.3.6 Dahi Pouch:

Available in:

400 gm Pasteurised Toned Milk Dahi 400 gm Pasteurised Skimmed Milk Dahi Lite 200 gm Pasteurised Toned Milk Dahi 200 gm Pasteurised Skimmed Milk Dahi Lite

2.3.7 Paneer:

Available in:

Paneer 200 Gms Paneer 1 kg Paneer Makhni 1Kg

2.3.8 Ghee:
Paras desi ghee is available in:

Tetra Pack (200gms,1/2 Litre and 1litre) Poly Jar (200gms, 1/2 Litre, 1litre, 2litre, 5litre) Refill Pack (1/2 Litre, 1litre) Bulk Tin pack (1/2 Litre, 1litre, 2litre, 5litre, 15kg)

2.4 Export :
After a strong acceptance from the Domestic market Paras has registered its presence in the International arena as well. With modern dairy ingredient plants in technical collaboration with Westfalia Separator, A.G.Germany, Filteration Engineering Inc,U.S.A. and Applexion,France. Paras has ensured that its processing capabilities and therefore its products are second to none.

 Major markets include

USA, Germany, Egypt, Jordan, Libya, Ivory Coast, Afghanistan, Bangladesh,

UAE.

Our product range include

Skimmed Milk powder (ADPI Extra Grade) Whole Milk Powder - Regular & Instant Acid & Rennet Casein Caseinates (Na/Ca) Sweet Whey Powder Demineralised Whey Powders - 50,70 & 90 Lactose (Edible Grade) Whey Protein Concentrate - 34% Whey Protein Permeate Milk Protein Concentrate - 70% Ghee UHT Processed Milk White Unsalted Butter

3.5 Human Resource:

Paras are built on fundamental ideals of service to employees, customers and

community. They commit themselves to recruitment, development and retention of the most competent talent and develop an ethical work culture of trust, where we are transparent in our activities, sincere in our communication and add value promises. They develop, recognize and reward our employee for their accomplishments.

HR policy :

HR at PARAS offers equal opportunities to all employees and facilitate environment congenial to individual & corporate growth with Dignity of Human Being; Mutual Respect and Trust.

Work Culture:

Transparency in interactions & communication Value to Promise & Commitment Vision driven performance & rewards Freedom to experiment Autonomy to work Promote creativity and innovativeness Recognition of human resource as Critical Asset

OBJECTIVE & SCOPE OF THE STUDY

3.1 Objectives of Project:

The main objective of the Study can be listed as follows A. Primary Objective 1. To find size of retail network of Paras Full Cream and Paras Toned Milk areas of Lucknow city. in specific 2. To find the problems faced by retailers in selling and storing. 3. To collect the information about the competitors.

B. Secondary Objective

1. To organize sales promotional activities to improve milk selling. 2. To generate and secure consumer awareness.

3.2 Scope of Project:

The study carried out in Lucknow city so its scope is mainly limited to Lucknow city. It gives information about the size of the retail network.

It gives information about the services given by distributor to their retailer.

It gives information about the competitors products.

It will serve consumer in better manner.

It provides suggestions to the company to improve their products sales.

It gives information about the sales promotion activities to improve the milk sale.

RESEARCH METHODOLOGY

4.1

Research Methodology:

The research was conducted from 16th June, to 31st July, 2012. The research includes meetings with the retailers, consumers and dealers. It included preparation of the questionnaire to be answered by above people for knowing the competitive position of Paras in the milk market. The views of the above parties were recorded in the research as per the questionnaire set by us.

4.1.1 Research Approach:

The objective was to know the competitive position of Paras in the milk market thus in order to successfully conduct the research the unbiased opinion of the above parties was desirable. Thus we conducted the research as the representative of Paras company and sometimes the representatives of the other company like Parag or Amul in order to have an unbiased opinion of the concerned persons and it worked to achieve our goal.

4.1.2 Research Instrument:

The research instrument was the structured questionnaire formulated for the respondents. The questionnaire was different for the retailers and dealers and for the consumers there was a different set of questionnaire. There were also the area maps.

4.1.3 Types of Question: The second important aspect in the designing a question is to decide which types of question are to be used. Question can be classified in various ways. Questionnaire contains following type information1. Open-ended question

2. Dichotomous question 3. Multiple-choice Question Both the questionnaire consists of all three types of question. Mostly all questions are multiple type questions. Dichotomous question are few in number. There is only one open-ended type question. 4.3.1 Area of Operation: The areas of operation were the research was done are as follows: Nirala Nagar Aliganj Topkhana Cantt

How the survey conducted To approach the outlets with the following requirements in mind At Approach: What type of shop it is? (hotels, bakery, restaurant, general stores, super market) Does it stock Paras products? What other brands available in the shop Secondary Level: Whether it sells milk ?

If yes, whether it sells Paras milk ? Whether the company provides any promotional support ? Territory Level: Does he sell local milk or not? Which is the most selling milk in the market? Who supplies milk to your shop? Does the delivery of milk is on time? What is the mode of payment credit or cash?

Others: Types of schemes given to him. What are the uses of milk ?

Addendum: Outlets may include institutions, general stores, mithai shops, super market, canteens, juice bars, ice-cream corners etc. These sectors were chosen because the company believed that these segments could be the best potential buyers for this product. Others: Types of schemes given to him. What are the uses of milk ?

Addendum: Outlets may include institutions, general stores, mithai shops, super market, canteens, juice bars, ice-cream corners etc. These sectors were chosen because the company believed that these segments could be the best potential buyers for this product.

DATA ANALYSIS AND INTERPRETATION

5.1

Data Analysis For Retailers:-

1) Number of retailers stocking Paras milk. (Out of 50 retailers only 10 were stocking Paras milk. Answer Yes No Percentage 15% 85%

Yes

No

15%

85%

Interpretation: The above graph indicates that only 1/4th of the retailers are selling Paras milk.

It shows that Paras milk brand is not popular among the retailers.

2) Sizes of Paras milk packets retailers preferred to store.

(Out of 50 retailers only 30 were buying Paras milk.)

Answer 175ml 500 ml 1 Ltr 5 Ltr

No. of 30respondents 18 2 0

175ml

500 ml 0% 4%

1 Ltr

5 Ltr

36% 60%

Interpretation:

The above graph shows that most of the retailers preferred to stored 500 ml and 175 ml pouch of Paras milk as per the customer demand.

In case of 5 Ltr. Pouch there was no customers demand. 1ltr pouches were not available to retailers.

3) Reasons for Paras milk not stored by retailers.

(Out of 50 retailers 30 were not buying Paras milk.)

No. Answer Absence of packaging date Low margin No replacement for leakage No distribution respondents 2 18 6 4

of

Absence of packaging date

Low margin

18

No replacement for leakage

No distribution

5 No. of Respondent

10

15

20

Interpretation:

From above graph it is clear that half of the retailers were not satisfied with Paras replacement and margin policy.

Some retailers responded about absence of packaging date.

Very less retailers complained about distribution network

4) Preference of retailers to milk brand.

BRANDS Paras Amul

RESPONDENTS 5 18

Parag 10 Mother Dairy 4 Others 7

18

10 7 5 4

Paras

Amul

Parag

Mother Dairy

Others

Interpretation:

The above graph shows that the Amul is most preferable brand in all.

Some retailers also prefers Parag and others brands.

5) Sources from where retailers get Paras milk

(Out of 50 retailers only 30 were buying Paras milk.)

Answer Percentage Distributors Other suppliers 85 % 15 %

Distributors

Other suppliers

15%

85%

Interpretation: Almost all retailers said that they purchased milk from Paras distributors.

6) Retailers satisfaction with Paras distributor.

(Out of 50 retailers only 30 were buying Paras milk)

Answer Yes No

Percentage 60 % 40 %

Yes

No

40%

60%

Interpretation: Graph shows that most of the retailers were satisfied with the service provided by the Paras distributors.

7) Awareness among retailers about different Sales Promotional activities for Paras milk.

(Out of 50 retailers only 30 were buying Paras milk.)

Activities Price off Free samples Credit facility Advertisement Coupons

Aware 9 4 4 12 12

Not aware 5 10 14 2 1

20 15 10 5 0 Price Off Free Samples Credit Facility Aware Not aware Advertisement Coupons 5 10 9 4 4 12 12 2 14 1

Interpretation:

The graph shows that retailers were aware about the sales promotion activity that Paras carried out, but some respondents were unaware about various activities.

Most of the retailers were aware about advertisement and coupons scheme during

festivals.

Credit facility and free samples were not provided to single retailers.

8) Interest of retailers in wholesale distribution of Paras milk.

Answer Yes No

Percentage 30 % 70 %

Yes 27%

Yes No

No 73%

Interpretation:

Graph represents the interest of the retailers to start Paras milk distribution .The questions asked to increase the retail coverage.

Most of the retailers were not interested.

Only 27% of the retailers were ready to start Paras distribution.

9) Retailers expectation from Paras milk. (Out of 50 retailers only 30 were buying Paras milk.)

ATTRIBUTE Good quality Clear packaging date Availability

RESPONDENTS 15 5 10

15 10 5 0 Good quality Clear packaging date Availability Series1

Interpretation: The question asked to the retailers where the Paras milk is being sale, and tried to collect feedback of customers about Paras milk. More customers were having complaints about the clear date of packaging and

availability. Some customers were not happy with quality of milk.

10) Ratings from retailers for attributes of Paras milk.

(Out of 50 retailers only 30 were questioned as they buying Paras milk.)

Attributes Quality Rating Very good Good Average Bad Very bad Total 3 10 17 0 0 30

Brand image Availability Packaging Margin

0 6 24 0 0 30

17 13 0 6 0 30

4 2 24 0 0 30

0 0 0 25 5 30

40 35 30 25 20 15 10 5 0 3 Quality 25 10 6 0 Brand Image Very Good Good 17 2 4 Availability Average Bad Packaging Very bad 0 Margin 17 24 0 0 0 6 0 13 24

From the above graph it can be concluded that

QUALITY: Most of the retailers were satisfied with Paras milk quality. BRAND IMAGE: The graph shows that Paras is having Average brand image. AVAILABILITY: Most of the retailers were satisfied with the Paras milk

distribution. PACKAGING DATE: Most of the retailers were not satisfied about not printing of packaging date and they were facing a problem regarding same. MARGIN: All retailers were not satisfied with the margin policy given by Paras.

5.2

Data Analysis for Customers:-

1) Number of customers purchasing Paras milk. (Out of 50 retailers only 16 were buying Paras milk.) Answer Yes No Percentage 40% 60%

Yes

No

40%

60%

Interpretation: The above graph indicates that only 40% of the customers are purchasing Paras milk. It shows that Paras milk brand is not popular among the customers.

2) Ratings from customers for attributes of Paras milk.

(Out of 50 customers only 30 were questioned as they buying Paras milk.)

Attributes Rating

Brand Quality 18 9 3 0 0 30 image 25 5 0 0 0 30 Availability 16 9 0 5 0 30 Packaging 5 2 15 8 0 30 Price 6 13 11 0 0 30

Very good Good Average Bad Very bad Total

35 30 25 9 20 25 15 10 5 0 Quality 5 0 Brand image Very good Good Availability Average Bad 18 16 15 13 0 3 0 0 5 0 9 0 8 0 11

2 5 Packaging Very Bad 6 Price

Interpretation:

From the above graph it can be concluded that QUALITY: Most of the customers were satisfied with Paras milk quality. BRAND IMAGE: The graph shows that Paras do not have good brand image. AVAILABILITY: Most of the customers were satisfied with the Paras milk

distribution. PACKAGING DATE: Most of the customers were satisfied about not printing of packaging date and they were facing a problem regarding same. PRICE: Some customers were not satisfied with the price given by Paras.

2) Preference of Customers to milk brand.

BRANDS Paras Amul

RESPONDENTS 8 19

Parag 7 Mother Dairy 4 Others 12

Paras

Amul

Parag

Mother Dairy

Others

24%

16%

8% 14% 38%

Interpretation: The above graph shows that the Amul is most preferable brand in all.

Some customers also prefers Parag and others brands.

OBSERVATION & FINDINGS

6.1 Observation & Findings:-

6.1.1 Retailers: (super market, grocery shops, etc.)

Because of low profit margin almost all retailers are not interested in Paras milk selling.

Retailers are not interested because they dont have storage facility but if company provides them such facility they will be sale Paras milk.

The 1Ltr and 5 Ltr milk pouch are no available to the retailers for selling.

On question, why retailers are not interested in selling of Paras milk, it is found they were not happy with margin, availability and replacement of leak pouches.

Retailers were selling different brands. Because they were able to receive more margin from non popularized as well as popularized brand that they could not from well known brands.

All retailers get Paras milk from company selected distributors.

All retailers were familiar with sales promotion activities undertaken by Paras. But more of the activities were not communicated by distributors. So it shows that taking the advantage of such activities. distributors are

Some questions were asked with view to convert retailers into distributors, but due to low margin they denied that. I found that customers were complaining about the packaging especially packaging date because Paras do not print packaging date on pouch. When question came to retailers ratings towards Paras milk rating most of the most respondents complaining about profit margin and packaging date. During campaign it is found that the mindset of consumers towards Amul milk is very high and hence it has become a milk market player. As from the sales chart it is clear that the sales of Amul pouch milk is 50% more than Paras pouch milk.

Retailers also demand for the replacements for the damage due to the spoilage of milk that they have to bear when the Paras milk gets spoiled after the purchase.

6.1.2 End Users: (House holds)

Consumers preference for purchasing of liquid milk is mainly based on quality, taste, availability, home delivery and freshness respectively.

Awareness level among the consumers is around 75% to 80% but still only around 15% consumers are consuming Paras milk.

Consumers have a perception that Paras milk is unfresh and is having lots of cuddling problem.

The packaging of Paras milk is not popular among the customers as compared to other milk brands are available in the market.

6.1.3 Bulk Users: (sweet shops, restaurants, hotels, canteens etc).

The awareness level of Paras milk in bulk users is around 90% but only 10% are using Paras milk.

 The preference of purchasing milk by the bulk users is mainly quality, price and timely availability.

The reasons for not using milk by the bulk users are :

1. Higher price that is not meeting the competitors rate as bulk user are very price sensitive.

2. In sweet marts mawa generation is less and there is a complaint about cuddling of milk.

3. In case of canteens contract some of them prefer credit purchasing which is against companys norms and policies.

SUGGESTIONS & RECOMMENDATION

9.1 Suggestions & Recommendation:-

The Milk products market has reached Maturity stage in India large number of Co-operatives having a variety of product range has entered the market, thus there is one way for Paras to sustain their milk business in the market by delivering outstanding satisfaction to their retailers, so that they can take interest in selling of Paras milk products. This can be done as follows:

Paras has a relatively good distribution network, but still company is not able to fulfill the demand of outlet in the peak season when demand is very high. Here company should consider on the supply of product in the peak season.

Supply should be regular to all the outlets including those that lie in the pocket roads and not just in the outlets which lie on the easily accessible routes.

1Ltr ml milk pouch should make available to retailers for selling, because lower income family has intention to buy small pouch milk.

Provide reasonable Margin to retailers as compared to competitors, this

motivates them to promote companys milk and milk products.

Improve delivery schedule to provide products on time for the retailers about who claimed that Paras milk is not available to them on time.

Incentives & schemes should be given to the retailers and some scrutiny should be follow to check the scheme get being communicated properly by distributors or sales person.

Provide consistent service to retailers as this will help gain company goodwill in the market.

Do not change distributor frequently, because he is the only person who act as a connecting link between company and retailers.

Do not place more than one distributor in same market area.

Though the customers are asking for Branded milk is very few but Paras should invest more money in Brand promotion and marketing in Lucknow, it will be beneficial for the company in the long run as well as in the short run.

Also advertising on the television, Radio Mirchi and Sponsorship of the events, Trade Fairs will be a better choice.

The study of milk market reveled that there is no Mergers and Acquisition in the milk industry. .

M y research revealed that there is no awareness among the consumers regarding the Paras milk in Lucknow. So it is advisable to the company to conduct various consumer awareness programs like distributing of pamphlets outside the big shopping malls, giving presentations in schools and colleges about the Paras Milk by telling them about the qualities of milk. By this we can able to reach to a large number of people at one time only as there will students along with their teachers and other staff members of the school and colleges.

The pamphlets should be printed in such a way that it not only advertise about the milk but also provides information about how to preserve the milk in different conditions.

In order to attract the ladies segment the pamphlets should have some recepies on the other side of it.

Some brand ambassador like may be used. That will help customers to

accept the product more quickly.

Special offers should be there for dealers, retailers and consumers at the time of festival or peak seasons.

Discount coupons should be given to the consumers in order to buy more milk.

In order to push the milk to the customers the profit margin should be increased.

Company should improve its distribution channel and should

increase the number of distributors.

Company should take care of retailers by solving their problems and should call back by appointing separate company representatives.

Timely visit should be given to the retail shops.

CONCLUSION

8.1Conclusion:-

As we know that Paras is very big organization in New Delhi and NCR. It has Milk, Flavored Milk, Dahi, Ghee which are its main/core products. But in case of market like Lucknow the Paras milk is not a popular product as compared to other milk brands. With the help of research, company can find out its week points in Milk product and can increase its market share through rectify mistakes. People have believed in Parass product and they will accept it also if effective actions were taken.

The survey resulted into following conclusions :

Paras must come up with new promotional activities such that people become aware about

Paras Milk like Paras Full Cream & Toned Milk.

Quality is the dominating aspect which influences consumer to purchase Paras product, but prompt availability of other Milk brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales.

In comparison to Paras Milk, the other players such as Amul,

Parag, Mother Dairy and Gyan provide a better availability and give competition to the hilt.

People are mostly satisfied with the overall quality of Paras Milk, but for the existence in the local market Paras must use aggressive selling techniques

LIMITATIONS

7.1 Limitations:-

This report had to work under several constraints and limitations. Some of the key limitation are:

1.

The survey is limited only for five wards.

2.

Time period of the project was 6 weeks, which may not be enough to understand the whole market.

3.

Convenient sampling was used as the mode of conducting the

research.

4.

The sample size of the taken was small, therefore it can be said that the chosen sample is not the representative of the whole population and this hindered quantitative research.

5.

The psychology and temperament of a respondent play a significant role. Some respondents are more sensitive as against others who are more tolerant. A change in the composition of the respondents can affect the answers adversely or favorably.

6.

Respondents may not have been true in answering various questions and may be biased to certain other questions.

7.

Out of the whole research and analysis, only three to four major brands could be highlighted, leaving aside the other non-popular brands.

8.

The questionnaire mostly contained multiple choice questions, therefore many respondents did not give a proper thought before up

the questions, and some even ticked things, which were not applicable. Therefore, all this increased the bias. 9. The sample size of Retailers / Wholesalers was very small and

therefore response from

them does not reflect the exact view because they may to biased.

BIBLIOGRAPHY

Books:

i.

Kotlar Philip : Marketing Management (Thirteenth Edition)

Published By Ashoke K. Ghosh Prentice Hall of India Private Limited M-97, Connaught Circus, New Delhi-110001 (Page no. 0509)

ii.

C. R. Kothari: Research Methodolog y Published By New Age

International (P) Ltd. First Edition-1985 Second Edition-2004 Re-print- 2013

Websites:
i. www.parasdairy.com.

ANNEXURE

QUESTIONNAIRE:- (Retailer Survey)

Name of the shop: Retailer Name: _ Address:

1) Do you stock Paras milk? a) Yes b) N o

2) If yes, what is the size of Paras milk packets do you preferred to store? a) 175 ml b) 5 0 0 ml c) 1 Ltr d) 5 Ltr.

3) If No, Why? a. Absence of packaging date b. Low margin c. No replacement for leakage d. Low distribution 4) Which is the most preferable brand of packaged milk that you stock? Paras Amul Parag Mother Diary Others

5) From where do you get Paras milk? a) Distributors b) Other suppliers 6) Are you satisfied with Paras distributor? a) Yes b) N o 7) Do you know which Sales promotional activities does the company undertake for

Paras milk? a) Price off b) Credit facility c) Advertisement d) Free samples e) Coupons f) P-O-P Displays

8) Are you interested in distribution of Paras milk? a) Yes b) No 9) What is consumers expectation from Paras milk? a) Good quality b) P a c k a g i n g c) Availability 10) Give your ratings to following attributes of Paras milk. Very good Good Average Bad Very bad a) Quality b) Brand image c) Availability d) Packaging e) Margin

QUESTIONNAIRE:(Customer survey) Name of the house: Name of owner:

Address: 1) Do you know about Paras? Yes 2) No

What are the products of Paras you use very frequently? Milk Ghee

3) Yes

Do you regularly get the Paras Milk? No Which brands milk do you like most? Amul Parag Mother Diary

4) Paras

Other (Specify).. 5) Yes 6) Poor 7) Poor 8) Low 9) Poor 10. Do you know about Paras Full Cream and Toned Milk? No How is the taste of Paras Full Cream Milk? Satisfactory Excellent

How is the taste of Paras Toned Milk? Satisfactory Excellent

What about the price of Paras milk? Average High

How is the packing of Paras milk? Good Excellent

Do you like the home delivery scheme of Paras Milk?

Yes

No

11. Give your ratings to following attributes of Paras milk. Very good Good Average Bad Very bad a) Quality b) Brand image c) Availability d) Packaging e) Price

12.

Any suggestion about Paras milk