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SUMMER TRAINING PROJECT REPORT

ON
“A Study on Marketing Strategy of Parag
Milk in Lucknow City”
Towards partial fulfillment of
Master of Business Administration (MBA)
(Affiliated to Dr. A. P. J. Abdul Kalam Technical University, Lucknow)

Company Guide: Faculty Guide:


Mr. Naveen Srivastava Dr. Meetu Pandey
(Manager) (Associate Professor)
BBD NITM, Lucknow

Submitted by:
Rahul Kumar Singh
Roll No. 1705470061
M.B.A. 3rd Semester

SESSION 2017-2019
DEPARTMENT OF MANAGEMENT

Babu Banarasi Das


National Institute of Technology & Management
Sector 1, Akhilesh Das nagar, Faizabad Road, Lucknow (U. P.), India

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ACKNOWLEDGEMENT

Achievement is finding out what you would be then doing, what you have to do. The

higher the summit, the harder is the climb. The goal was fixed and we began with a

determined resolved and put in ceaseless sustained hard work. Greater challenge,

greater was our effort to overcome it.

This project work, which is my first step in the field of professionalization, has been

successfully accomplished only because of my timely support of industry guide. I

would like to pay my sincere regards and thanks to those, who directed me at every

step in my project work.

I am obliged to the head of department of management Dr. GauravPande to provide

us this summer training from out of campus.

I take this opportunity to extend my sincere gratitude and profound obligation towards

and my Project report Faculty guide Dr. Meetu Pandey for giving me valuable

suggestions & guidance rendered to me throughout the Training project without their

encouragement and continuing support, this Research project would not have been

possible.

I am highly thankful to other faculty members whose able guidance in this project

makes my way simple & easy.

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PREFACE

Summer Training Project Report is an important part of the Management studies. It

bears immense important in the field of Business Management. It offers the student to

explore the valuable treasure of experience and an exposure to real work culture

followed by the industries and thereby helping the students to bridge gap between the

theories explained in the book and their practical implementations.

Research plays an important role in future building of an individual so that we can

understand the real world in which he has to work in future. The theories greatly

enhance our knowledge and provide opportunities to blend theoretical with the

practical knowledge where researcher gets familiar with certain aspect of research. I

feel glad to get myself to do research on topic “A Study on Marketing Strategy of

Parag Milk in Lucknow City”.

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EXECUTIVE SUMMARY

Introduction to the project in terms of objectives of study company profiles, company

policies which have been selected to be compared and about the product. Target

Companies: Parag Dairy

In today’s competitive world while entering in the market it is very necessary to have

good knowledge of the potential of a particular market. The information regarding the

activities of competitor’s existing in the market so that we can plan our each activity

according to that. It is also necessary to retain the existing customers apart from

attracting the new customers. The final outcome of the project is that the parameters

which hinder the sale of milk products of Parag Dairy are Price, Quality, Service and

Taste. Milk market is a totally unpredictable market and the organization should be

over-cautious of any complaints that come into milk as it includes the sentiments of a

mother for her kid and she would not prefer to give anything to her kid for which she

is not 100% satisfied. So the company should take every step possible to contain these

problems which in some way or the other affects the sale of Parag Dairy and its

retailers. It is concluded that Parag Dairy i.e. Single Toned milk has a high potential

in the market and it is the known to its customers and its acceptance is comparatively

higher as of other variants and competitors present in the market and they do not want

to switch over to other brand.

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TABLE OF CONTENT

Certificate ii

Declaration iii

Acknowledgement iv

Preface v

Executive Summary vi

Sr. No. Topic Page no.

1. Introduction 1-27

2. Company profile 28-59

3. SWOT Analysis 60-62

4. Scope of the Study 63

5. Objectives of the study 64-65

6. Research methodology 66-68

7. Data analysis& Interpretation 69-82

8. Findings 83-85

9. Recommendations 86-87

10. Conclusions 88-89


10. Limitations 90-91
11. Bibliography 92-93
12. Appendix 94-96

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CHAPTER-1
INTRODUCTION

Page 1
INTRODUCTION

STRATEGY

Strategy is important because the resources available to achieve these goals are

usually limited. Strategy generally involves setting goals, determining actions to

achieve the goals, and mobilizing resources to execute the actions. A strategy

describes how the ends (goals) will be achieved by the means (resources).

A strategy is a unified, comprehensive and integrated plan that relates the strategic

advantages of the firm to the challenges of the environment. It is designed to ensure

that the basic objectives of the enterprise are achieved through its proper execution by

the organization.

Strategy can be further explained as:

 A plan or course of action or a set of decision/rules making a pattern or

creating a common thread.

 A pattern or common thread related to the organization’s activities which are

derived from the policies, objectives and goals.

 Concerned with pursuing those activities which move an organisation - from

its current position to a planned future position

 Concerned with the resources necessary for implementing a plan or a

predetermined course of action.

Today the term strategy is used in business to describe how an organization is going

to achieve its overall objectives. Strategy is concerned with deciding which alternative

is to be adopted to accomplish the overall objectives of the organization,

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Characteristics of Strategy

1. Unified, Comprehensive and Integrated plan

2. Universal Applicability

3. Strategy Alternatives like Stable Growth Strategy, Growth Strategy,

Retrenchment Strategy, and Combination Strategy.

4. Strategy Review

5. Applicable to all Functional Areas like Marketing, Production, Finance and

Human Resources.

6. Allocation of Resources

7. Objective oriented

8. Related to Environment

9. Future Oriented

10. Levels of Strategy – Corporate, Business and Functional Strategy

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STRATEGIC MANAGEMENT

Strategic Management involves the formulation and implementation of the major

goals and initiatives taken by a company's top management on behalf of owners,

based on consideration of resources and an assessment of the internal and external

environments in which the organization competes. Strategic management provides

overall direction to the enterprise and involves specifying the organization's

objectives, developing policies and plans designed to achieve these objectives, and

then allocating resources to implement the plans. Strategic management is not static in

nature; the models often include a feedback loop to monitor execution and inform the

next round of planning. The systematic analysis of the factors associated with

customers and competitors (the internal environment) to provide the basis for

maintaining optimum management practices.

PROCESS OF STRATEGIC MANAGEMENT

1) STRATEGY FORMULATION

Every organization whether small or big has certain objectives to be achieved. Each

of them has to prepare a broad plan for achieving those objectives. Strategy

formulation means defining the strategy in a very clear and simple word. Strategy

formulation means stating the outline and the features of a strategy. It simply means

preparing the action plan. Strategy is a pattern or plan that integrates an organization's

values, major goals, policies and action sequences into a cohesive whole. A well

formulated strategy helps to marshal and allocate an organization's resources into a

unique and viable posture based on its relative internal competencies and

shortcomings, anticipated changes in the environment, and contingent moves by

intelligent opponents.

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2) STRATEGY IMPLEMENTATION

It is important to ensure that the strategy is implemented effectively; Strategy

implementation is an important aspect of strategic management. It is the sum total of

all the activities and choices required for the execution of a strategic plan. It is the

process by which strategies and policies are put into action through the development

of programs, budgets and procedures.

3) STRATEGY EVALUATION

The strategic management process results in decisions that can have significant long-

lasting consequences. Erroneous strategic decisions can inflict severe penalties and

can exceedingly difficult, if not impossible, to reverse. Most strategists agree, and

therefore, that strategy evaluation is vital for an organisation’s well-being; timely

evaluations can alert management to problems or potential problems before a situation

becomes critical. Strategy evaluation includes three basic activities:

1. Examining the underlying bases of a firm’s strategy.

2. Comparing expected results with actual results

3. Taking corrective actions to ensure that performance conforms to plans.

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BENEFITS OF STRATEGIC MANAGEMENT

1. Choice of strategy – strategic management helps the management to select

the best possible strategy.

2. Competitive Advantage – Innovation, after-sale-service and other activities

generate competitive advantage to the firms.

3. Corporate Image – Due to strategic management the performance and image

of the firms improve.

4. Organisational Efficiency – Efficiency is the ratio of returns to costs. Due to

Strategic management the firms gain higher returns at lower costs.

5. Organisational Objectives - Strategic management enables a firm to

effectively implement strategies in all functional areas like production,

marketing, finance, human resources etc

6. Organising Resources – Strategic management helps in proper allocation and

utilization of resources.

7. SWOT Analysis – SWOT analysis helps the firm to keep pace with the

changing nature of the environment affecting the organisation.

8. Facilitates Planning - Strategic management facilitates proper planning of

various activities in the organisation. The alternative plans are analysed in

terms of benefits and costs.

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LIMITATIONS OF STRATEGIC MANAGEMENT

1. Limitation of Assumptions - Strategic management is based on certain

premises or assumptions it can be unrealistic and cannot be implemented

effectively.

2. Problem in Analyzing Environment – organization may not clearly analyse

the opportunities and threats of the external environment.

3. Unrealistic Mission and Objectives - Strategic management may not achieve

success if the mission and objectives are not realistic.

4. Problem of Setting Targets- Shortfall in implementing a target may result in

frustration or de-motivation

5. Problem in Implementation - if the strategy is not implemented properly

then even an exceptional good strategy may not produce desired results.

6. Lack of Evaluation – there may be lack of proper evaluation and control

which may render the process of Strategic management unsuccessful.

7. Lack of Commitment of Lower Level - Strategic management requires

people with vision, expertise, commitment and dedication which are rarely

available for making organization successful.

8. More theoretical in Nature - Strategic management is a very theoretical in

nature.

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FUNCTIONAL STRATEGIES

The strategies should give direction to the managers who will use and implement the

plans and policies the best and proper method, way to adopt it. The selection of the

best strategy alternative is not the end of strategy formulation. Policies define the

ground rule for implementation. A policy defines the area in which decisions are to be

made, but it does not give the decision. It spells out the sanctioned general direction

and areas to be followed. Functional strategies operate below the Strategic Business

unit or business level strategies. Functional strategies or functional plans and policies

are made within the guidelines set at higher levels. Plans are made to select a course

of action while policies are required to act as guidelines to action. Environmental

factors relevant to each function area have an impact on the choice of plans and

policies. Functional areas are traditionally divided into finance, marketing, production

and personnel. Strategies can be divided as basic, general, departmental.

Organisations frame strategies in al functional areas. The functional areas include -

Human Resource Strategies, Marketing Strategies, Financial Strategies and

Operational Strategies.

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TYPES OF FUNCTIONAL STRATEGIES

FUNCTIONAL STRATEGIES

HUMAN OPERATIONA
MARKETING FINANCE L/
RESOURCE
PRODUCTION
S

1) Human Resource Strategies

 Recruitment and Selection Strategy

 Training strategy

 Performance Appraisal Strategy

 Promotion strategy

 Transfer Strategy

 Compensation and Motivation strategy

2) Marketing Strategies

I. Product Strategy

 Product Line (Multi product or diversified)

 Development of Product

 Other policies (Packaging)

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II. Pricing Strategy

Skimming

 Rapid skimming- high price heavy promotion

 Slow skimming-high price low promotion

Penetration

 Rapid Pricing – low price heavy promotion

 Slow penetration- low price low promotion

Follow leader pricing, differential pricing

III. Distribution Strategy

 Area of distribution, training of dealers

 Promotion and market research Strategy

 Advertising, media selection.

3) Financial Strategy

 Use Fixed capital

 Utilization of funds

 Framing Capital structure-equity, preference etc

 Provision- future needs.

4) Operational Strategy

 Capacity for production

 Size and location of plant

 Technology and modernization

 Quality of products

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 Research and development

MARKETING STRATEGY:

Marketing strategy is the goal of increasing sales and achieving a

sustainable competitive advantage. Marketing strategy includes all basic and long-

term activities in the field of marketing that deal with the analysis of the strategic

initial situation of a company and the formulation, evaluation and selection of market-

oriented strategies and therefore contribute to the goals of the company and its

marketing objectives. Marketing strategies are dynamic and interactive. They are

partially planned and partially unplanned. Strategies are dynamics

Your well-developed marketing strategy will help you realise your business's goals

and build a strong reputation for your products. A good marketing strategy helps you

target your products and services to the people most likely to buy them. It should be

planned and developed in consultation with your team. It is a wide-reaching and

comprehensive strategic planning tool that:

 describes your business and its products and services

 explains the position and role of your products and services in the market

 profiles your customers and your competition

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 identifies the marketing tactics you will use

 Allows you to build a marketing plan and measure its effectiveness.

5 key of Marketing Strategy concepts –

1) Product Positioning and Product Differentiation – it influence how

consumers perceive a brand`s characteristics relative to those of competitive

offerings

2) Environmental Analysis – it is the assessment of the external forces and how

they are changing that will influence the firm, its product and its customer, and

that create threats and opportunities.

3) Marketing Research – it applied consumer research designed to provide

managers with information on factors that impact consumer’s acquisition,

consumption and disposition of goods, services and ideas.

4) Marketing – Mix Developments – it involves development and coordination

of activities involving Product, Pricing, Promotion and Distribution

5) Segmentation of Customers – it involves subdividing the market place into

distinct subsets of customers having similar needs and wants, each of which

can be reached with a different marketing mix.

 What does marketing strategy have to do with this materialization out

of nothing?

Marketing strategy is sorting out who your audience actually is, and then finding out what

has meaning for them. What do they care about, and how does this relate to your offer?

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What message can you deliver that is both true and meets your consumer squarely at the

level of their needs? Marketing strategy is the process of uncovering messages that can be

heard. Marketing strategy allows you to answer the crucial question your offer must

address: “Why should I care?” To paraphrase Peter Drucker: Consumers do not buy what you

sell. They buy what has value to them.

 Why does marketing strategy matter?

In marketing, there is strategy and there are tactics. A lot of marketing, in practice, is

preoccupied with what I call tactical experimentation. This is the act of throwing all

kinds of things out at the world or at broad demographic targets to see what works. As

you do this you are spending money, potentially lots of it. The idea in this method is

to do this until you find some marketing actions that work, and when you find them

you can then do more of those.

This process often results in the classic Wanamaker dilemma—”Half the money I

spend on advertising is wasted; the trouble is I don’t know which half.” He was

speaking of advertising, but the principle applies.

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TYPES OF MARKEING STRATEGIES

There are four (4) main types of marketing strategies that businesses can apply in marketing

their products or services.

1. Market Leader Strategies

Under this strategy, there are three ways in which you could use it to establish

yourself as a market leader. The first way is to expand your total market. This is done

by applying strategies that will increase the numbers of consumers using your product

or services. To lead you must find new uses of existing products or targeting a new

market. In identifying new markets, you might have to source consumers in locations

where your product is not known.

Defending the market share you are in control of is the second strategy. The most

effective ways of defending your current market is by capitalizing on improving the

quality of your products to be able to retain consumers. Market segmentation helps in

defending your market share.

The third strategy is to expand your market share. To expand your market share you

need to aggressively counter completion. A business can deal with completion by

doing what your competitor does not.

2. Market Challenger Marketing Strategy

The market challenger marketing strategy means that you research and identify minor

unmet needs that you believe your business can cater for competitively. There is little or no

competition here, and it makes it easy to establish yourself in the market. Challengers use

the weaknesses of their competitors as their selling point.

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3. Market Niche Marketing Strategy

Having a market niche means that your market is differentiated into fine tuned segments.

The niches make it easier to address the need of consumers in each of the market

niches. This is a fundamental type of marketing strategy as you are able to address the

differing preferences of diverse consumers as well as moving with current trends in the

market. Diversifying the market will enable you to reach out to a wider market.

4. Market Follower Marketing Strategy

The market follower depend waits for his competitors to identify markets and carry out

research consumer preferences. As a follower, you need to be keen your competitor’s

weaknesses and improve on them. This marketing strategy saves you on cost arising from

having to carry out research because you only have to work on your competitors

weaknesses to better your products.

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Some more types of Marketing Strategies

Marketing is the important aspect of an organisation. The success of the organisation is

largely attributed to the performance of the marketing. Therefore there must be suitable

strategies

1. PRODUCT STRATEGY

Every organisation must have appropriate product strategy. The product

strategy enables to take decisions in respect of

 Product Line/Mix

A company may follow either a single product strategy or a multi-product

strategy. A company may concentrate on core product line or a diversified

product line business.

 Development of new products

A firm must decide about the development of new products or modified

products to face the competition in the market and to meet the needs and wants

of the customers.

 Other Product policies

A firm must decide on other product policies in respect of Policies relating to -

product packaging, Product Positioning, Branding and Brand extension.

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2. PRICING STRATEGY

While fixing prices, a firm may consider several factors such as cost of the

product, demand for the product, competition in the market, the nature of product,

the nature of consumers, objectives of the firm etc.

 Skimming pricing strategy

High prices are charged in order to earn high profit margins. A firm may

follow either –

Rapid skimming - where high prices are charged and there is heavy

promotion.

Slow skimming – where high prices are charged and there is low promotion.

 Penetration pricing strategy

Low price are charged in order to capture a good market share. A firm may

follow either –

Rapid Penetration – where low prices are charge and there is heavy

promotion.

Slow Penetration - where low prices are charge and there is low promotion.

 Other Pricing strategies

There are several other pricing strategies such as – follow the leader pricing.

Standard pricing, Differential pricing, Trial pricing, Probe pricing.

3. PROMOTION STRATEGY

A firm must frame policies in respect of promotion. The various promotion

strategies are in respect of –

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 Advertising Strategy

A firm must frame strategy in the area of advertising in respect of –

o Advertising budget strategies – brand-wise, area-wise, period-wise and media-

wise.

o Media scheduling strategies – bursting, flighting, pulsing etc.

o Media Selection strategy – depending upon nature of product, competitors,

advertising, consumers.

 Sales Promotion Strategy

A firm must give proper emphasis on sales promotion techniques. Therefore a

firm must frame sales promotion strategy in respect of -

o The amount of funds to be spent on sales promotion techniques like discounts,

exchange offers, free gifts, samples etc.

o Decision on areas like after-sale-service, guarantees etc

o Duration and timing of sales promotion offers – whether during festival

periods.

o Products or brands and the market areas which needs to be given more focus

for sales.

 Publicity

Publicity plays an important role in promotion of goods and services. Publicity

is gaining public visibility or awareness for a product, service or your

company via the media. Therefore a firm needs to frame proper publicity

strategy in respect of -

o The media to be concentrated for publicity,

o The period or timing of publicity,

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o The relationships with various media people,

o The amount of funds to be allocated for publicity purpose, such as on event

marketing during product launch, gifts t the media people etc

 Personal Selling Strategy

Personal selling is a promotional method in which one party (e.g., salesperson) uses

skills and techniques for building personal relationships with another party (e.g.,

involved in a purchase decision) that results in both parties obtaining value. It plays

an important role in promoting the sale of products, especially in the case of

industrial goods.

Therefore proper decisions must be taken in respect of –

o The number of sales force, selection and training.

o The compensation to the sales force.

o The products, which require personal selling efforts.

o The markets or areas where personal selling is required etc.

 Marketing Research Strategy

Marketing research plays an important role in marketing of goods and services.

Marketing research is "the process or set of processes that links the consumers,

customers, and end users to the marketer through information. It is the systematic

gathering, recording, and analysis of qualitative and quantitative data about issues

relating to marketing products and services. A firm must decide in respect of –

o The products which requires market research

o The markets where marketing research to be conducted.

o The type of marketing research such as sales research, product research, consumer

research, pricing research etc.

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o The amount of funds to be invested in marketing research

o The duration and timing of marketing research.

o Whether marketing research to be conducted in-house, or by an external agency.

o If in-house selection and training of marketing research staff.

4. DISTRIBUTION STRATEGY

A firm must frame strategy in respect of distribution. The distribution strategy

needs to be framed in respect of –

o Channels of distribution – whether direct channels or indirect channels.

o Areas of distribution – whether local, regional, national or international.

o Dealers network – the number of dealers, area-wise, product-wise.

o Dealers training – training to the staff of dealers, especially in the case of

consumer durables so that they are familiar with the features and operations of

the product.

o Dealer’s incentives and compensation – commission to be paid to the dealers

and additional incentives to push the sales in the market.

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BENEFITS/ADVANTAGES OF ADOPTING MARKETING

STRATEGIES

This means business owners can create a marketing plan that they are more

comfortable with and take advantage of marketing methods that are best for their

company. A marketing strategy is the foundation and key element to achieving

success. This is all possible because marketing saves time and helps business owners

to define their product and let potential consumers know they exist.

1. Increase in Sales & Expansion of Business

Marketing strategies helps company to choose the best possible strategy and

implement in a very effective way which will help to increase sale of product. Proper

marketing strategies help to expand the business which results into great profit and

capture a huge place in market which would be very difficult for small business to

compete with you.

2. Increase in Profit

Effective implementation of marketing strategies enables a company to achieve its

organisational objectives such as increase in profit and increase in market share. The

company gains higher returns at lower cost.

3. Provides a Plan

Not everyone markets according to a plan, and this is the very reason one should write

down a plan and stick to it. A marketing plan acts as a guide as the business

progresses, so owners can see where their time and money is going. It provides a look

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into the future goals of the company, and gives step-by-step directions on how to

achieve those goals.

4. Defining a Brand

Defining a brand means knowing what you are selling, and to whom you’re selling it

to. In other words, you must also define your audience. Without knowing who to

market to, business owners can lose. Due to marketing strategies the image of the

company improves in the mind of various people.

5. Out-flanking Your Competition

With knowledge gained from identifying your best customer profile you can create a

core marketing message that will differentiate you from your competition.

6. Make it easy for them to find You

We call it a Total Web Presence. Your website is your hub and all of your marketing

tactics are designed to direct your prospects to your educational hub. That includes

offline as well as online. A great marketing strategy will help you identify where you

prospects “hang out” and that enables you to put out “bread crumbs” of content which

redirect them to your website.

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LIMITATIONS TO BE TAKEN WHILE FRAMING MARKETING

STRATEGIES

Marketing strategies can give your marketing efforts and campaigns a focus. Instead

of hoping that customers find their way to your small business or marketing to

everyone all the time, marketing strategies help to divide what is an ocean of

consumers into navigable segments. These segments can then be addressed

individually so that your marketing message is attractive to each

1. Cost

Adverting and marketing costs money. If you don’t do the proper research then you

might end up throwing money away. Wasting marketing efforts by targeting the

wrong audience using an inappropriate medium would be a serious and costly

mistake. So it is important to do your research beforehand and keep your costs to a

minimum.

2. Investment of time –

Researching the appropriate marketing strategy, designing and writing the adverts,

getting them published, dealing with any response. It’s important to spend time

keeping track of how successful or not your marketing campaign is. A potential

disadvantage of marketing here is the risk of time wasted for an unsuccessful

campaign.

3. Failure

An obvious disadvantage to a promotional strategy is its potential for failure. You

could invest time and money designing and advertising a sale, and sacrifice normal

profits during the promotion, only to achieve moderate results. Careful research and

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expert advice from a marketing consultant can help maximize your chances for

success, but nothing’s guaranteed.

4. Predictability

If your promotions occur in a predictable pattern, potential customers might wait for a

sale rather than buy the product or service at full price now. That means if a retail

clothing store offers a sizable discount on most holidays, sales will be low between

holidays, and relatively few customers will ever pay full price.

5. Bargain Hunters

New customers might learn to love your product or service and become long-term

clients. Or they might abandon you as soon as the promotion is over and continue to

hunt for bargains. Converting bargain hunters to permanent customers depends on

developing brand loyalty.

6. Competitions

Competitors in the marketing space may be another disadvantage. You have to work

hard to make your product stand out or else you may lay back in spite of spending

your time and money.

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CHAPTER-2
COMPANY PROFILE

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COMPANY PROFILE

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.

AREA OF DISTRIBUTION INITIALLY BAKSHI KA TALAB,TELI


BAGH,SOUTH CITY,TEWARIGANJ, AT
PRESENT ENTIRE DISTRICT

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About the Company

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 timeLucknow 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.

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, drawn fromL

ucknow 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
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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 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 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.

Page 28
The work of expansion has been complete in 1989.

The work of expanded dairy started functioning on full capacity in 1991-1993 year.

The liquid milk and products are selling in the market in the brand name of PARAG.

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

has been carried out Lucknow Producer’s Co-operative Milk Union Ltd, Lucknow.

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

revolution) scheme. Mostly unit milk Sahakari Board where connected under

Operation Flood – II, having the name DugdhUtpadakSahakariSangh (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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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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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

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

9.0 Chhach 500 ml

10.0 Kheer 100 gm

10.1 Rice kheer 100 ml

10.2 Chhenakheer 100 ml

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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

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.

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.

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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 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.

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

Page 34
Rate of Parag’s Product
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

Page 35
Marketing Department
Objective

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

supply chain management and control the product price because it is most important

aspect for consumer otherwise they will switch to another brand products

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.

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.Lucknowunit supply hygienic, fresh milk through the milk vans. Lucknow

Page 36
is the first unit which is selling directly to the customer, door to door three loose milk

tankers.

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.

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.

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.

Page 37
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.

Promotional Strategy

a) Pulling strategy

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.

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Pricing Strategy

DugdhSangh should make a strategy to analyze the consumer’s capability and then set

accordingly prices. DugdhSangh 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 so company

must provide an inspector who has full power to replace the milk at the retail point.

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ORGANIZATION PERFORMANCE

ESTABLISHMENT OF ORGANIZATION:

The organization was established in year 1938 and was registered on 23rd March

1938.

PARAG GETS NDDB QUALITY STAMP

Lucknow: Following the National Dairy Development Board’s (NDDB) seal of

quality certification on all milk and other products of a milk union in Allahabd, Uttar

Pradesh has joined a select club of states in the country to ensure quality control in

dairy products. The stamp of quality – a pneumonic seal-provided by NDDB on

products under the brand name of Parag, produced by the Pradeshik Cooperative

Dairy federation (PCDF) will now on mean a guarantee that the milk being sold under

this seal is “pure, hygienic and safe”. The NDDB had given its approval of the quality

certification for the Allahabad Union, milk union of Kanpur followed by Varanasi and

Lucknow. With his UP joined Gujarat besides the metropolitan cities of Bangalore,

Delhi and Kolkata to get this unique distinction. The news of NDDB certificate had

brought in both great honour and challenges. It is a very coveted certification, which

has an added responsibility that could be proved through concerted efforts to

standardize quality in products. There are about 51 milk unions spread across the state

and the NDDB quality umbrella has covered nearly all of them.

Page 40
MARKET SHARE OF PARAG IN LUCKNOW

Parag has captured near about 52% of market share in Lucknow city as compared to

different milk producers such as AMUL, local suppliers etc . Greater number of

consumers is buying the PARAG products due to its taste, price, brand, name, purity

and quality.

PRODUCTS OF THE COMPANY

1. Liquid milk

 Parag gold (full cream milk)

 Paraglite (skimmed milk)

 Paragtaaza (toned milk)

2. ParagBesanladdoo

3. ParagMattha

4. ParagKheer

5. Paneer

6. ParagPeda

7. White Butter

8. Parag Curd

9. Table Butter

10. ParagFlavoured Milk

11. Parag Ghee

12. Parag Milk

Page 41
DEMAND AND SUPPLY ANALYSIS

The consumption of milk and milk products in Lucknow has been a sudden spurt in

recent times and the demand has grown much beyond the local production levels. In

this regard, Uttar Pradesh Milk Union has decided that Lucknow would be

supplemented with supply from neighboring districts. This decision was taken by

Pradeshik Cooperative Dairy Federation (PCDF) general manager S.K. Prasad, since

milk supply from local Union members, besides Rai-Bareli disrtict, could barely meet

the demand in the UP capital, said here today. Now milk tankers would ferry from

Sitapur, Shahjahanpura, Rai-Bareli, Barabanki, Sultanpur, Lakhimpur, Gonda, Basti

and Bahraich districts to the Lucknow Milk Union Dairy for processing and

subsequent supply in the state capital.

Production unit gets 1million liters of milk per day. This increases to 1.5

million liters in winters and come down to 7-8 lakh liters per day. The steady sales

progress of the milk union is reflected from the fact that from an average sales of

94,460 liters of liquid milk per day in the year 2002-03. The sale grew to 1,36,886

liters per day in the year 2007-08 and during the year 2008-09 and the sales stands at

1,44,992 liters per day till 30th Nov 2008.

Consequently, the sales turnover of the Milk Union has grown from Rs. 64.07 crore in

the year 2002-03 to Rs. 120.75 Crore in the year 2007-08.

Page 42
STRATEGIES IN DIFFERENT STAGES OF PRODUCT

1. Introduction Stages:-

 Rapid Skimming

 Most of the market is unaware of the product.

 When aware consumer are ready to pay high prices.

 There is a threat of competition coming quickly.

 Slow Skimming

 Most of the market is aware of the product.

 Market is limited.

 When there is threat of competition.

 Rapid Penetration

 When market is very big.

 Most of the market is unaware of the product.

 There is threat of competition.

 Consumer is price sensitive.

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2.Growth stage:-

 Strategy :

 Improve product quality.

 Enter new market segment.

 Improve distribution coverage.

 Reduce price to attract price sensitive

2. Maturity Stage

 Strategy:

 Market modification.

 Product modification.

 Marketing mix modification.

 Down price and promotion.

 Market demand is more.

 Change in distribution channel.

 Changing customer need.

 More customers are willing to accept the product.

MARKETING DIVISION

The marketing division of LMU has been divided into two parts:-

1. Liquid milk marketing

2. Milk product marketing

The division is important because the marketing strategies of both are entirely

different.

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LIQUID MILK MARKETING

At present the liquid milk is having the market name as “PARAG” and it is

being marketed through local units/ milk union in major cities of U.P and Delhi under

the director of the PCDF Ltd. Lucknow, Kanpur, Delhi, Varanasi and Meerut are the

main center point for the maximum milk demand.

MILK PRODUCT MARKETING

The milk product marketing division is handling the marketing of butter,

paneer, flavored milk.

The above products reach the ultimate consumers through one of the following

channels:

 Stockiest sale

 Concessionaire sale

 Clearing and forwarding agents

Stockiest sale in three system having two intermediaries viz.

Manufacture> Stockiest> Retailer> Consumers

Each of the intermediaries operates on the basis of margin on percentage of the

investment. In concessionaire sale only one intermediary is involved i.e.

Manufacture> Concessionaire>Consumer

Through this channel the product are highly perishable nature finds their way out.

Except U.P and Delhi, in other state PARAG products are distributed through clearing

overheads by eliminating the necessity of the PCDF owned warehouses and offices in

their state.

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MARKETING STRATEGIES OF PARAG

The term marketing mix has been applied to the activity of combining marketing

methods to achieve profitable exploration of the market. A satisfactory marketing mix

is dependent upon the establishing of ones objective and preparation of a strategic

marketing plan, which incorporates the various appropriate methods of reaching these

objectives.

Following are some typical ingredients of the marketing strategies:-

 Product quality

 Cash discount

 Advertising

 Marketing research Product pricing

 Product development

 Product range

 Sales force

 Sales aid

 After sales services

 Stock level

 Units of sale

 Distribution arrangements

 Credit

 Packaging

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BRAND LOYALITY

Brand loyalty is alive and well. It is the creation of emotional attachment to a

company and its product/services. In the sense, a consumer is willing and ready to pay

more for a product with a strong brand and to do it more frequently. For instance if

you buy ketchup and you are wandering the aisles of your grocery stores, you will see

the Heinz right next to the store brand. Fundamentally, both products are identical-

tomatoes, sugar and water, but the emotional attachment of your “training” (from ads)

- “there is no other kind, once you have tasted Heinz”, and the familiar shape of the

bottle will drive you to buy the Heinz ketchup at a premium price.

Take a look at Levis for a brand that suffered badly from fatigue. In the 80s

they had a strange hold on the denim market. Then in the 90s they were caught with

their pants down (so to speak). The lure of their brand vanished. Competitors took the

fight to them. I don’t think that they have regained that brand strength since.

Page 47
PROCUREMENT OF MILK

1. RECEPTION OF MILK:

Reception of milk refers to the process of making the decision regarding the

acceptance of milk for further processing, whether the milk is acceptable or not, has to

be decided by the person in charge of the reception section. The place where the

process is carried out is known as reception dock. Since the future processing of milk

mainly depends upon its quality. The decision of accepting the milk must be made

very carefully.

The process of reception includes the following:

a) Unloading

b) Sampling

c) Testing

d) Weighing and recording

2. CHILLING OF MILK:

After reception of good quality of raw milk to sufficiently low temperature so that

the growth of microorganism present in the milk is checked. In this process the

temperature of milk should be reduced to less than 10 degrees C preferably 3.4 degree

C.

3. STEURIZATION OF MILK:

The process of heating every particle of milk and milk products to at least 63

degree C and holding at such temperature continuously at least 30 minutes or heating

it to at least 71.5 degree C and holding at such temperature continuously for at least

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15 seconds. All pasteurized milk shall be cooled immediately to a temperature of 10

degree C or less shall be maintained at the temperature until delivery.

4. MARKETING OF MILK AND MILK PRODUCTS:

DUSS have its own packing machines sponsored by DRDA, Muzaffarnagar. 9000

litres of milk of different standards i.e. (1) Full Cream (2) Standard milk (3) Double

tonned milk is packed per day. The poly packed milk is being supplied in different

cities i.e. Muzaffarnagar, Haridwar, Saharanpur and Meerut also. Rest milk is send to

the Mother Dairy, Delhi and Feeder Balancing Dairy Pratappur, Meerut city by its

own milk tankers. DUSS are also manufacturing 300kg to 400 kg per day from the

cream let after standardize milk. DUSS have its Ghee packing machines sponsored by

IRDA, Muzaffarnagar. Mostly ghee manufacturing in the DUSS is mostly purchased

by the Primary Milk Cooperatives Societies. Paneer and flavoured milk are also

prepared by DUSS on the demand basis. There is no regularly supply of these

products.

MILK PROCESSING

STEP 1:- MILK IN THE STORAGE TANK:

The milk that the milk trucks deliver to the company production plants is

transported in large milk tanks. Milk is milk, but all milk is not the same. That also

applies to the storage of the milk. The milk is received from Parag Dairy farmers in

the Uttar Pradesh, which Parag processes with protected designation. Parag Dairy

farmers and employees work according to quality guideline, which ensures thequality

Page 49
of the processes. Naturally, there are ISO guidelines. And increasingly, the Hazard

Analysis of Critical Control Point (HACCP) and the British Retail Consortium (BRC)

procedures are considered as the standards for the food safety. Quality assessments

also take place during the process at the plant.

STEP 2-: STANDARDISATION AND PASTEURISATION:

Processing starts as soon as possible after the milk has been delivered. An

important first step is pasteurization, which involves heating the milk briefly and then

quickly cooling it again. This process effectively eliminates unwanted bacteria. The

milk is then stored at low temperature. Another initial step is standardization i.e.

adjusting the fat content of the milk. The milk is spun around in large centrifuges,

which separates the lighter elements (cream)from the heavier elements (skimmed

milk). This gives each type of milk its own fat content: 3.5% for full fat milk, 1.5%

for semi- skimmed milk and 0.1% for skimmed milk.

STEP 3:- SKIMMED MILK:-

A basic principle in dairy processing is separating the cream from the skimmed milk.

With the exception of milk fat, skimmed milk contains all the goodness of milk, such

as proteins, calcium and minerals. After the cream has been skimmed off, anything is

possible using skimmed milk, cream and combination of the two.

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STEP 4:- CREAMS:

Cream is a by- product of the preparations for producing dairy products.

This valuable liquid is a natural flavoring, used for whipped cream, but also for

yoghurts and deserts. It not only gives them an extra creamy consistency but a full-

bodied flavor. And of course, cream is processed into butter. Parag milk goes through

23 quality checks just for you. The dairy receives milk at 5 degree C through road

milk tankers from various milk unions of PCDF Ltd. after thorough testing milk is

accepted, pasteurized, clarified, standardized, packed and dispatched for sale.

The quality checks includes:-

1. Cleanliness

2. Foreign particles

3. Organoleptic test

4. Soda test

5. Alcohol test

6. Urea test

7. Glucose test

8. Sugar test

9. Salt

10. Hydrogen Peroxide test

11. Formaline test

12. Starch

13. Sodium Thiosulphate

14. Mineral Oil test

15. B.R reading for refined oil

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16. Milky activity

17. Clot on boiling

18. Phosphate test

19. Milk fat

20. Milk SNF

21. M.B.R.T. test for shelf life

22. Standard plate count

23. Coliforms

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SWOT ANALYSIS

STRENGTHS

 Demand profile: Absolutely optimistic

 Margin: Quite reasonable, even on packed liquid milk.

 Flexibility of the products: Tremendous with balancing equipment. You

Can keep on adding to your product line.

 Availability of raw material: Abundant, Presently, more than 80% of

Milk produced is flowing into the unorganized sector. Which requires?

Proper capitalization.

 Technical manpower: Professionally trained, technical human resource

WEAKNESSES

 Perishability: Pasteurization has overcome this weakness partially. UHT

gives milk long life. Surely many new processes will follow to improve milk quality

and extend its shelf life.

 Lack of control over yield: Theoretically, there is a little control over milk

yield. However, increased awareness of development like embryo transplant, artificial

insemination and properly managed animal husbandry practices, coupled with higher

income to rural milk producers should automatically lead to improvement in milk

yield.

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 Logistics of procurement: woes of bad road and inadequate transport facility

make milk procurement problematic. But with the overall economic improvement in

India, these problems would also get solved.

 Problematic distribution: yes, all is not well with distribution. But if ice

creams can be sold virtually at every nook corner, why can’t we sell other dairy

products too? Moreover, it is only a matter of time before we see the emergence of a

cold chain linking the producers to refrigerator at the consumers home

 Competition: With so many new comers entering this industry, competition is

being tougher day by day. But then completion has to be faced as a ground reality, the

market is large enough for many to carve out their niche.

OPPORTUNITIES:

“Failure is never final, and success is never ending.” Dr. Kurien bears out this

statement perfectly .He entered the industry when there were only threats. He met

failure head-on, and now he is clearly an example of “never ending success”. If dairy

entrepreneurs are looking for opportunities in India, the following areas must be

tapped. Value addition: There is a phenomenal scope for innovation in products

development , packaging and presentation. Given below are potential areas of value

addition:-

a) Steps should be taken to introduce value added products like shirkhand, ice

cream, paneer, khoya, flavoured milk, dairy sweet etc.

b) This will lead to a greater presence and flexibility in the market place along

with opportunities in the field of brand building.

c) Addition of cultured products like yoghurt and cheese lend further strength,

both in terms of utilization of resources and presence in the market place.

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d) A lateral view opens up opportunities in milk proteins through casein,

caseinates and other dietary proteins, further opening up export opportunities.\

 Yet another aspect can be the addition of infant foods geriatric food and

Nutritional.

 Export potential: Efforts to exploit potential are already on. Amul is

exporting to Bangladesh, Srilanka, Nigeria and the Middle East. Following the new

GATT treaty, opportunities will increase tremendously for the export of agriculture

products in general and dairy products in particular.

THREATS

 Milk Vendor, the unorganized sector: Today, milk vendors are occupying

the pride of place in the industry. Organized dissemination of information about the

harm that they are doing to producers and consumers should see a steady decline in

their importance.

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SCOPE OF THE STUDY

 To Understand the terminologies used in market by retailers.

 Develop the usefulness in enhancing the usability of the product.

 To know different selling skills at various situation of market.

 To learn different strategies which are used by retailers in market to convince

the customers?

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OBJECTIVES OF THE STUDY

Page 64
OBJECTIVES OF THE STUDY
 To find out marketing strategies of Parag milk in Lucknow.

 To identify various factor which motivates people to use Paragmilk .

 To discover the main reason beyond shifting of customer from Parag milk to

other brands.

 To find out customer satisfaction level regarding Parag milk.

Page 65
CHAPTER-4
RESEARCH METHODOLOGY

Page 66
RESEARCH METHODOLOGY
Research methodology is a way to systematically represent research on any problem.

It tends taken by the researcher in studying the research problem along with the logic

behind them. It tends to define the methodology for the solution of the problem that

has been undertaken for the purpose of the study. The methodology may include

publication research, interviews, surveys and other research techniques.

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis


of data in a manner that aims to combine relevance to the research purpose
with economy in procedure. In fact, the research design is the conceptual
structure within which research is conducted. This research was descriptive in
nature.

DESCRIPTIVE RESEARCH:

The research undertaken will be a descriptive research as it was concerned


with specific predictions, with narration of facts and characteristics concerning
A Comparative Analysis on Promotional Strategies on Parag in Lucknow.

SAMPLING DESIGN

The following factors have been decided within the scope of sample design:

Universe of study: Lucknow.

Sample Size: A sample of minimum respondents will be selected from various areas

of Lucknow. An effort was made to select respondents evenly. The survey will be

carried out on 100 respondents.

Sample Unit: In this project sampling unit consisted of the various individuals who

are the customers of ParagDairy.

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Sampling Technique: For the purpose of research convenient sampling technique

will be used.

Sampling Frame: It consisted of various sources from where information about the

respondent is extracted.

DATA COLLECTION

There will be two types of data sources used in this research. These will be

Secondary data

Secondary data is the data collected from already been use or published information
like journals, diaries, books, etc .In this research project, secondary source used were
various journals, and website of various online journals.

Primary data

Primary data is the data collected for the first time from the source and never have
been used earlier. The data can be collected through interviews, observations and
questionnaires. In this project, an appropriate questionnaire will be designed which
will be filled by the customers of Parag Dairy.

Universe-Lucknow

Statistical tools to be used-pie charts, bar charts

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CHAPTER-5

DATA ANALYSIS

Page 69
Data Analysis and Interpretation

1) Quality rate of Parag Milk in lucknow


Excellent Good Average Poor
Parag Milk 31% 44% 19% 6%

Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor

Figure 4.2

Figure 4.2 shows that 31% respondents replied that Parag Milk has excellent quality
however 25% respondents replied that Namaste India excellent quality, 44%
respondents replied that Parag Milk is good in terms of quality however 43%
respondents replied that Namaste India is good in terms of quality.

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2) Milk brand is more demanding by the customer
Parag Milk 64%
Others 36%

Parag Milk

36%

64%

Figure 4.3
Figure 4.3 shows that 64% respondents replied that Parag Milk is more demanding by
the customer however 36% respondents replied that Namaste India is more
demanding by the customer.

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3) Rate the packaging of Parag Milk in terms of safety and attractiveness
Excellent Good Average Poor
Parag Milk 30% 45% 22% 6%

Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor

Figure 4.4
Figure 4.4 shows that 30% respondents replied that Parag Milk has excellent
packaging in terms of safety and attractiveness however 33% respondents replied that
Namaste India has excellent packaging in terms of safety and attractiveness. 42%
respondents replied that Parag Milk has good packaging in terms of safety and
attractiveness however 46% respondents replied that Namaste India has good
packaging in terms of safety and attractiveness.

Page 72
4) Rate the Parag Milk in terms of nutritive values
Excellent Good Average Poor
Parag Milk 34% 40% 15% 11%

Parag Milk
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor

Figure 4.5
Figure 4.5 shows that 34% respondents replied that Parag Milk is excellent in terms of
nutritive values however 30% respondents replied that Namaste India is excellent in
terms of nutritive values. 40% respondents replied that Parag Milk is good in terms of
nutritive values however 49% respondents replied that Namaste India is good in terms
of nutritive values.

Page 73
5) Rate the Parag Milk in terms of taste
Excellent Good Average Poor
Parag Milk 24% 43% 23% 10%

Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor

Figure 4.6
Figure 4.6 shows that 24% respondents replied that Parag Milk is excellent in terms of
taste however 31% respondents replied that Namaste India is excellent in terms of
taste. 43% respondents replied that Parag Milk is good in terms of taste however 45%
respondents replied that Namaste India is good in terms of taste.

Page 74
6) Rate the Parag Milk in terms of healthiness
Excellent Good Average Poor
Parag Milk 28% 46% 21% 5%

Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor

Figure 4.7
Figure 4.7 shows that 28% respondents replied that Parag Milk is excellent in terms of
healthiness however 22% respondents replied that Namaste India is excellent in terms
of healthiness. 46% respondents replied that Parag Milk is good in terms of
healthiness however 52% respondents replied that Namaste India is good in terms of
healthiness.

Page 75
7) Rate the Parag Milk in terms of value for money
Excellent Good Average Poor
Parag Milk 25% 42% 18% 15%

Parag Milk
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor

Figure 4.8

Figure 4.8 shows that 25% respondents replied that Parag Milk is excellent in terms of
value for money however 27% respondents replied that Namaste India is excellent in
terms of value for money. 42% respondents replied that Parag Milk is good in terms
of value for money however 43% respondents replied that Namaste India is good in
terms of value for money.

Page 76
8) Rate the pricing of Parag Milk.
High Reasonable Low
Parag Milk 18% 75% 7%

Parag Milk
80%
70%
60%
50%
40%
30%
20%
10%
0%
High Reasonable Low

Figure 4.9

Figure 4.9 shows that 75% respondents replied that the pricing of Parag Milk is
reasonable however 69% respondents replied that the pricing of Namaste India is
reasonable.

Page 77
9)Parag Milk always available at your shop
Strongly Strongly
Agree Agree Neutral Disagree Disagree
Parag Milk 32% 49% 5% 8% 6%

Parag Milk
60%

50%

40%

30%

20%

10%

0%
Strongly Agree Agree Neutral Disagree Strongly
Disagree

Figure 4.10
Figure 4.10 shows that 32% respondents were strongly agreed with the fact that Parag
Milk always available at their shops however 38% respondents were strongly agreed
with the fact that Namaste India always available at their shops. 49% respondents
were agreed with the fact that Parag Milk always available at their shops however
45% respondents were agreed with the fact that Namaste India always available at
their shops.

Page 78
10) Rate the distribution system of Parag Milk
Excellent Good Average Poor
Parag Milk 21% 44% 27% 8%

Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor

Figure 4.11
Figure 4.11 shows that 21% respondents replied that Parag Milk has excellent
distribution system however 22% respondents replied that Namaste India has
excellent distribution system. 44% respondents replied that Parag Milk has good
distribution system however 47% respondents replied that Namaste India has good
distribution system.

Page 79
11) Rate the promotional efforts of Parag Milk.
Very Not Not at all
Effective Effective Effective Effective
Parag Milk 23% 56% 5% 16%

Parag Milk
60%

50%

40%

30%

20%

10%

0%
Very Effective Effective Not Effective Not at all Effective

Figure 4.12
Figure 4.12 shows that 23% rated the promotional efforts of Parag Milk as very
effective however 22% rated the promotional efforts of Namaste India as very
effective. 56% rated the promotional efforts of Parag Milk as effective however 53%
rated the promotional efforts of Namaste India as effective.

Page 80
12) Rate the TV advertisement of Parag Milk.
Very Not Not at all
Effective Effective Effective Effective
Parag Milk 31% 47% 14% 8%

Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Very Effective Effective Not Effective Not at all Effective

Figure 4.13
Figure 4.13 shows that 31% rated the TV advertisement of Parag Milk as very
effective however 32% rated the TV advertisement of Namaste India as very
effective. 47% rated the TV advertisement of Parag Milk as effective however 49%
rated the TV advertisement of Namaste India as effective.

Page 81
13) Rate the online advertisement of Parag Milk.
Very Not Not at all
Effective Effective Effective Effective
Parag Milk 25% 54% 13% 8%

Parag Milk
60%

50%

40%

30%

20%

10%

0%
Very Effective Effective Not Effective Not at all Effective

Figure 4.15

Figure 4.15 shows that 25% rated the online advertisement of Parag Milk as very
effective however 30% rated the online advertisement of Namaste India as very
effective. 54% rated the online advertisement of Parag Milk as effective however 52%
rated the online advertisement of Namaste India as effectiv

Page 82
CHAPTER-6
FINDINGS

Page 83
FINDINGS

 31% respondents replied that Parag Milk has excellent quality however, 44%

respondents replied that Parag Milk is good in terms of quality.

 64% respondents replied that Parag Milk is more demanding by the customer.

 30% respondents replied that Parag Milk has excellent packaging in terms of

safety and attractiveness however 42% respondents replied that Parag Milk

has good packaging in terms of safety and attractiveness.

 34% respondents replied that Parag Milk is excellent in terms of nutritive

values however 40% respondents replied that Parag Milk is good in terms of

nutritive values.

 24% respondents replied that Parag Milk is excellent in terms of taste howeve.

43% respondents replied that Parag Milk is good in terms of taste.

 28% respondents replied that Parag Milk is excellent in terms of healthiness

however 46% respondents replied that Parag Milk is good in terms of

healthiness.

 25% respondents replied that Parag Milk is excellent in terms of value for

money however 42% respondents replied that Parag Milk is good in terms of

value for money.

 75% respondents replied that the pricing of Parag Milk is reasonable.

 32% respondents were strongly agreed with the fact that Parag Milk always

available at their shops.

 23% rated the promotional efforts of Parag Milk as very effective

 56% rated the promotional efforts of Parag Milk as effective.

Page 84
 31% rated the TV advertisement of Parag Milk as very effective however

47% rated the TV advertisement of Parag Milk.

 25% rated the online advertisement of Parag Milk as very 54% rated the

online advertisement of Parag Milk.

Page 85
CHAPTER-7
RECOMMENDATIONS

Page 86
RECOMMENDATIONS

 Parag can cut costs for some period of time followed immediately by strong

advertising. As we have seen during the research that most of institutions give

most preference to the margin provided to them on milk (except coffee

outlets). As the quality and taste and availability of Parag are best in market

and local milk companies’ good margin to them, Price remains the main

criteria of institutional milk sales.

 Can start schemes like cash prizes or foreign trips on scratching the barcode

on the packet

 Locate the institutions using competitor’s milk and provide them attractive

offers to increase the market share so that at least the big competitors will not

try to expand.

 Mergers and Acquisition in the milk industry with local players help the

company in increasing its distribution network and Market share. Following

this both companies can buy the milk from local dairies taking over their

business which is substantial in terms of market share

 Both companies should introduce a mascot for the milk. This will help in easy

Brand differentiation and Recognition.

 Efficiency in distribution

 Remove communication barriers and misconceptions between the Institutions

and distributors by effective communication with institutions time to time.

Page 87
CHAPTER-8
CONCLUSION

Page 88
CONCLUSION

In today’s competitive world while entering in the market it is very necessary to have

good knowledge of the potential of a particular market. The information regarding the

activities of competitor’s existing in the market so that we can plan our each activity

according to that. It is also necessary to retain the existing customers apart from

attracting the new customers. The final outcome of the project is that the parameters

which hinder the sale of milk products of Parag Dairy are Price, Quality, Service and

Taste. Milk market is a totally unpredictable market and the organization should be

over-cautious of any complaints that come into milk as it includes the sentiments of a

mother for her kid and she would not prefer to give anything to her kid for which she

is not 100% satisfied. So the company should take every step possible to contain these

problems which in some way or the other affects the sale of Parag Dairy and its

retailers.

Page 89
CHAPTER-9

LIMITATIONS

Page 90
LIMITATIONS

1. The sample size was restricted to hundred customers.

2. Resources like time and cost was a constraint.

3. The study was conducted in Lucknow city. So the findings and conclusion

drawn are applicable to Lucknow only.

4. The methods used for analysis and interpretation purpose may have some

limitations of their own and some errors can always creep in.

5. The sample size is small; hence the result cannot be generalized.

Page 91
BIBLIOGRAPHY

Page 92
BIBLIOGRAPHY

Books

 Kothari. C.R (2004): Research Methodology Methods & Techniques‟, New

Age International Publishers, New Delhi, 2nd Edition.

 Kotler, P. (2003) Marketing Management, 11th European edition, Prentice

Hall.

Websites

http://www.business-standard.com/article/management/parag-milk-foods-way-to-go-

112021300028_1.html

https://www.slideshare.net/chiragbeladiya3/chirag-beladiya-final

https://www.slideshare.net/avinandankarmakar9/a-project-of-horeca-53920019

Page 93
APPENDIX

Page 94
QUESTIONNAIRE

Q1. How will you rate the quality of Parag Milk?


Excellent Good Average Poor
Parag Milk

Q2. Which milk brand is more demanding by the customer?


Parag Milk
Others

Q3. How will you rate the packaging of Parag Milk in terms of safety and
attractiveness?
Excellent Good Average Poor
Parag Milk

Q4. How will you rate the Parag Milk in terms of nutritive values?
Excellent Good Average Poor
Parag Milk

Q5. How will you rate the Parag Milk in terms of taste?
Excellent Good Average Poor
Parag Milk

Q6. How will you rate the Parag Milk in terms of healthiness?
Excellent Good Average Poor
Parag Milk

Q7. How will you rate the Parag Milk in terms of value for money?
Excellent Good Average Poor
Parag Milk

Page 95
Q8. How will you rate the pricing of Parag Milk?
High Reasonable Low
Parag Milk

Q9. Parag Milk always available at your shop


Strongly Strongly
Agree Agree Neutral Disagree Disagree
Parag Milk

Q10. How will you rate the distribution system of Parag Milk?
Excellent Good Average Poor
Parag Milk

Q11. How will you rate the promotional efforts of Parag Milk?
Very Not
Effective Effective Effective Not at all Effective
Parag Milk

Q12. How will you rate the TV advertisement of Parag Milk?


Very Not
Effective Effective Effective Not at all Effective
Parag Milk

Q13. How will you rate the online advertisement of Parag Milk?
Very Not
Effective Effective Effective Not at all Effective
Parag Milk

--------------------------------------------------------------------------------.

Page 96