"Promotional and Distributional Strategies Share for Parag Milk Product to win over a Market
Lucknow. In India underdeveloped countries desirous of accelerating economic development emphasis the need of industrialization so much that they almost forget that the development of Consumer used the daily need products. Therefore must either precede occur simultaneously with Milk Product Industry development growth in Company. Therefore requires a high degree of Industry development to sustain a desirable rate of economic growth.
The Federation's extensive marketing network comprised 3000 distributors and 500,000 retailers spread across the country. Parag Dairy, 31% subsidiary of Parag Dairy, is among the leading branded food player in the country. It has a broad based presence in the foods sector with leading market shares in instant coffee, infant foods, milk products and noodles. It has also strengthened its presence in chocolates,
confectioneries and other semi processed food products during the last few years. The company has launched Dairy Products like UHT Milk, Butter and Curd and also ventured into the mineral water segment in 2001. Parag Dairys leading brands. Following the recent general agreement on tariff and trade to a globalization of markets will call for competitiveness and efficiency in the dairy sector in terms of productivity, risk coverage, nutritional qualities and adaptability. The dairy industry will have to Asses its strength and weakness in terms of vertical development, timely production, its processing storage, and marketing. In dairy farming is still in its growing phase, ongoing policy, initiative ness will have to suit domestic requirement. It should also capture a potential share of the international trade. In this endeavor, development of farm working technologies and their assessment, assignment, and creation of awareness about their potentials will be paramount importance.
understanding
than elsewhere which can be attributed to abundant availability of fodder, crop residues, etc which have a high food value for milk animals. In India about 46 per cent of the total milk produced is consumed in liquid form and 47 per cent is converted into traditional products like cottage butter, ghee, paneer, khoya, curd, malai, etc. Only 7 per cent of the milk goes into the production of western products like milk powders, processed butter and processed cheese. The remaining 54% is utilized for conversion to milk products. Among the milk products manufactured by the organized sector some of the prominent ones are ghee, butter, cheese, ice creams, milk powders, malted milk food, condensed milk infants foods etc. Of these ghee alone accounts for 85%. It is estimated that around 20% of the total milk produced in the country is consumed at producer-household level and remaining is marketed through various cooperatives, private dairies and vendors. Also of the total produce more than 50% is procured by cooperatives and other private dairies. While for cooperatives of the total milk procured 60% is consumed in fluid form and rest is used for manufacturing processed value added dairy products; for private dairies only 45% is marketed in fluid form and rest is processed into value added dairy products like ghee, makhan etc. Still, several consumers in urban areas prefer to buy loose milk from vendors due to the strong perception that loose milk is fresh. Also, the current level of processing and packaging capacity limits the availability of packaged milk.
The preferred dairy animal in India is buffalo unlike the majority of the world market, which is dominated by cow milk. As high as 98% of milk is produced in rural India, which caters to 72% of the total population, whereas the urban sector with 28% population consumes 56% of total milk produced. Even in urban India, as high as 83% of the consumed milk comes from the unorganized traditional sector. Presently only 12% of the milk market is represented by packaged and branded pasteurized milk, valued at about Rs. 8,000 crores. Quality of milk sold by unorganized sector however is inconsistent and so is the price across the season in local areas. Also these vendors add water and caustic soda, which makes the milk unhygienic.
Parag Milk & Milk Products Pvt. Ltd. Indian Supplier & Manufacturer of India
Processed Cheese Parag Milk & Milk Products Pvt. Ltd. Offers Gowardhan Processed Cheese. This Cheese Has Smooth Texture And Uniform Consistency.
Gowardhan Pasteurised Table Butter Parag Milk & Milk Products Pvt. Ltd. Offers Gowardhan Pasteurised Table Butter. This Butter Made From The Cow`S Milk Under Hygieni...
Product Profile Butter, Cheese, Cheese Powder, Ghee, Gulab Jamun Mix, Liquid Milk, Skim Milk Powder, Cream Milk Powder Jam
Industry Focus Ghee, Milk Powder, Cheese, Cheese Spread, Butter, Milk And Dairy Products, Jam
Contact Details Address : Awasari Phata, Manchar, Pune, Maharashtra - 410503 91-2133-224763
Telephone No. :
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The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative Milk Marketing Federation (GCMMF) is the largest player. All other local dairy cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other private players include J K Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a leading player in the sector has turned bankrupt and is facing liquidation.
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Packaging Technology
Milk was initially sold door-to-door by the local milkman. When the dairy cooperatives initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the years, several developments in packaging media have taken place. In the early 80's, plastic pouches replaced the bottles. Plastic pouches made transportation and storage very convenient, besides reducing costs. Milk packed in plastic pouches/bottles have a shelf life of just 1-2 days , that too only if refrigerated. In 1996, Tetra Packs were introduced in India. Tetra Packs are aseptic laminate packs made of aluminum, paper, board and plastic. Milk stored in tetra packs and treated under Ultra High Temperature (UHT) technique can be stored for four months without refrigeration. Most of the dairy co-operatives in Andhra Pradesh, Tamil Nadu, Punjab and Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs5-7 compared to plastic pouches. In 1999-00 Nestle launched its UHT milk. Parag too relaunched its Parag Taaza brand of UHT milk. The UHT milk market is expected to grow at a rate of more than 10-12% in coming years.
Regulatory Framework
The dairy industry was de-licensed in 1991 with a view to encourage private investment and flow of capital and new technology in the segment. Although de-licensing attracted a large number of players, concerns on issues like excess capacity, sale of contaminated/ substandard quality of milk etc induced the Government to promulgate the MMPO (Milk and Milk Products Order) in 1992.
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Milk and Milk Products Order (MMPO) regulates milk and milk products production in the country. The order requires no permission for units handling less than 10,000 litres of liquid milk per day or milk solids upto 500 tpa. MMPO prescribes State registration to plants producing between 10,000 to 75,000 litres of milk per day or manufacturing milk products containing between 500 to 3,750 tonnes of milk solids per year. Plants producing over 75,000 litres per day or more than 3,750 tonnes per year of milk solids have to be registered with the Central Government. The stringent regulations, government controls and licensing requirements for new capacities have restricted large Indian and MNC players from making significant investments in this product category. Most of the private sector players have restricted themselves to manufacture of value added milk products like baby food, dairy whiteners, condensed milk etc. All the milk products except malted foods are covered in the category of industries for which foreign equity participation upto 51% is automatically allowed. Ice cream, which was earlier reserved for manufacturing in the smallscale sector, has now been de-reserved. As such, no license is required for setting up of large-scale production facilities for manufacture of ice cream. Subsequent to de-canalization, exports of some milk based products are freely allowed provided these units comply with the compulsory inspection
requirements of concerned agencies like: National Dairy Development Board, Export Inspection Council etc. Bureau of Indian standards has prescribed the
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necessary standards for almost all milk-based products, which are to be adhered to by the industry. Proposal to Amend the MMPO A proposal to raise the exemption limit for compulsory registration of dairy plants, from the present 10,000 litres a day to 20,000 litres, is being considered by the Animal Husbandry Department. The 75,000-litre limit is likely to be raised either to 100,000 litres or 125,000 litres in the amended order. The new order would also do away with the provision for re-registration. Penetration of milk products Western table spreads such as butter, margarine and jams are not very popular in India. All India penetration of butter/ margarine is only 4%. This is also largely represented by urban areas, where penetration is higher at 9%. In rural areas, butter/ margarine have penetrated in 2.1% of households only. The use of these products in the large metros is higher, with penetration at 15%. Penetration of cheese is almost nil in rural areas and negligible in the urban areas. Per capita consumption even among the cheese-consuming households is a poor 2.4kg pa as compared to over 20kg in USA. The lower penetration is due to peculiar food habits, relatively expensive products and also nonavailability in many parts of the country. Butter, margarine and cheese products are mainly manufactured by organized sector.
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Similarly, penetration of ghee is highest in medium sized towns at 37.2% compared to 31.7% in all urban areas and 21.3% in all rural areas. The all India penetration of ghee is 24.1%. In relative terms, penetration of ghee is significantly higher in North and West, which are milk surplus regions. North accounts for 57% of ghee consumption and West for 23%, South & East together account for the balance 20%. A large part of ghee is made at home and by small/ cottage industry from milk. The relative share of branded products in this category is very low at around 1-2%. Milk powder and condensed milk have not been able to garner any significant consumer acceptance in India as indicated by a very low 4.7% penetration. The penetration is higher at 8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively higher in medium sized towns at 8.5% compared to 7.7% in a large metros.
Export Potential
India has the potential to become one of the leading players in milk and milk product exports. Locational advantage : India is located amidst major milk deficit countries in Asia and Africa. Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close to India.
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Low Cost Of Production : Milk production is scale insensitive and labour intensive. Due to low labour cost, cost of production of milk is significantly lower in India. Concerns in export competitiveness are Quality : Significant investment has to be made in milk procurement, equipments, chilling and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to international standards. Productivity : To have an exportable surplus in the long-term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle.
There is a vast market for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all over the world
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lactic acid to coagulate. Khoa - evaporated milk, used as a base to produce sweet meats. The market for indigenous based milk food products is difficult to estimate as most of these products are manufactured at home or in small cottage industries catering to local areas.
Consumers while purchasing dairy products look for freshness, quality, taste and texture, variety and convenience.
Products like Dahi and sweets like Kheer, Basundi, Rabri are perishable products with a shelf life of less than a day. These products are therefore manufactured and sold by local milk and sweet shops. There are several such small shops within the vicinity of residential areas. Consumer loyalty is built by consistent quality, taste and freshness. There are several sweetmeat shops, which have built a strong brand franchise, and have several branches located in various parts of a city.
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Cooperative Federation), Verka ( Punjab Dairy Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt). With increasing urbanization and changing consumer preferences, there is possibility of large scale manufacture of indigenous milk products also. The equipments in milk manufacturing have versatility and can be adapted for several products. For instance, equipments used to manufacture yogurt also can be adapted for large scale production of Indian curd products (dahi and lassi). Significant research work has been done on dairy equipments under the aegis of NDDB. Mafco Limited sells Lassi under the Aarey brand and flavoured milk under the Energee franchise (in the Western region, mainly in Mumbai). Britannia has launched flavored milk in various flavors in tetra packs. Parag has also made a beginning in branding of other traditional milk
products with the launch of packaged Paneer under the Parag brand. It has also created a new umbrella brand "Parag Mithaee", for a range of ethnic Indian sweets that are proposed to be launched The first new product Parag Mithaee Gulabjamun has already been launched in major Indian markets.
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Most Indians prefer to use home made white butter (makkhan) for reasons of taste and affordability. Most of the branded butter is sold in the towns and cities. The major brands are Parag, Vijaya, Sagar, Nandini and Aarey. Parag is the leading national brand while the other players have greater shares in their local markets. The latest entrant in the butter market has been Britannia. Britannia has the advantages of a wide distribution reach and a strong brand recall. Priced at par with the Parag brand, it is expected to give stiff competition to the existing players. In 1999-00 the butter production is estimated at 4 lakh MT of this only 45K MT is in the white form used for table purposes rest all is
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Cheese The present market for cheese in India is estimated at about 9,000 tonnes and is growing at the rate of about 15% per annum. Cheese is mainly consumed in the urban areas. The four metro cities alone account for more than 50% of consumption . Mumbai is the largest market (accounting for 30% of cheese sold in the country), followed by Delhi (20%). Calcutta (7%) and Chennai (6%). Mumbai has a larger number of domestic consumers, compared to Delhi where the bulk institutional segment (mainly hotels) is larger.
The major players are Parag, Britannia, and Dabon International dominating the market. Other major brands were Vijaya, Verka and Nandini (all brands of various regional dairy cooperatives) and Vadilal. The heavy advertising and
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promotions being undertaken by these new entrants is expected to lead to strong 20% growth in the segment. Parag has also become more aggressive with launch of new variants such as Mozzarella cheese (used in Pizza), cheese powder, etc. The entry of new players and increased marketing activity is expected to expand the market. All the major players are expanding their capacities
Milk Powder
Milk powder are mainly of 2 types _ Whole milk powder _ Skimmed milk powder
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Whole milk powder contains fat, as distinguished from skimmed milk powder, which is produced by removing fat from milk solids. Skimmed milk powder is preferred by diet conscious consumers. Dairy whiteners contain more fat than skimmed milk powder but less compared to whole milk powder. Dairy whiteners are popular milk substitute for making tea, coffee etc. The penetration of these products in milk abundant regions is driven by convenience and non perishable nature (longer shelf life) of the product. Dairy sector of advanced nations export milk products with a subsidy of $ 1000 per tonne with a level of subsidy more than 60 % of the price of milk powder produced in India, this has led to large scale imports of milk powder both in whole and skimmed form. To protect the domestic sector from these subsidized imports the central government has recently increased the basic import duty on all imports of milk powder more than 10000 MT to 60% from 15%. For imports less than 10000 MT the basic customs duty has been left unchanged at 15%. In 1999-00 India is estimated to have imported about 18,000 tonnes of milk powder against a total estimated production of 2.40 Lakh MTs. In 2000-01 India is expected to export 10000 MT of skimmed milk powder due to rise in international prices to $2300 per MT from last year's levels of $1400 per MT. These expectations are based on the strong demand from Russia, East Asia and Latin America, and also on tightening of supply in EU, which accounts for 75% of the annual global Skimmed Milk Powder exports.
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Major Players
Milk Powder/Dairy Whiteners : Major skimmed milk brands are Sagar and Nandini (Karnataka Milk Federation), Parag Full Cream milk powder is a whole milk powder brand. Leading brands in the dairy whitener segment are Nestle's Everyday, Dalmia Industry's Sapan, Kwality Dairy India's KreamKountry, Wockhardt's Farm Fresh and Britannia's MilkMan Dairy Whitener.
Condensed Milk
The condensed milk market has grown from 9000 MT in 1998 to 11000 MT in 1999. Condensed milk is a popular ingredient used in home-made sweets and cakes. Nestle's Milkmaid is the leading brand with more than 55% market share. The only other competitor is Amul.
Infant Foods
Nestle is the market leader in the segment. This is a category where brand loyalties are very strong as mothers want the best for their babies. Heinz is the only other significant competitor to Nestle in this segment. Nestle's Cerelac and Nestum together have around 80% market share and Heinz's Farex has close to 18% share. Wockhardt is a relatively new entrant with its First Food brand. Wockhardt also proposes to launch a new baby food Easum containing moong (moong is one of the easily digestible pulses). The Easum brand will directly compete with Nestle's Nestum (made from rice).
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In infant formula also Nestle's Lactogen formula and Lactogen standard formula are the leading brands with around 75% market share. Other brands are Heinz's Lactodex Farex, Wockhardt's Raptakos.
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H.J. Limited
Heinz
Britannia
Milkman
Cadbury
Bournvita
Malted food
Manufacturing Process
Milk is pasteurized by treating it to high temperature for a short time. The main aim in treating milk with high temperature is to destroy the disease causing pathogens and to improve keeping quality. Separation machine is typically a high powered centrifuge. The centrifugal force makes milk fat globules and emerges as cream from the separator bowl. Separation of cream produces skim milk from which several dairy products are made. Baby food : Fresh milk, which is received from farmers/ traders, is chilled and stored. Then MSK skimmed/ wet skimmed milk and sugar are added in turbo mixture to achieve the desired specifications of ingredients in the milk. This is followed by addition of vitamins and minerals. This milk which contains ingredients to specifications is filtered, cooled, analyzed and then purified.
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Then it passes through specific pasteurization and is taken to evaporator for pre-condensing. Pre-condensate is homogenized, cooled and stored. Cooled pre-condensate is heated and dried in spray drier (Egron). Then sugar is added. The powder is then passed through chemical analysis to check quality and is filled in tins through filling machines. These tins are gassed during gas mix and then sealed, packed and dispatched in cardboard cartons. Butter : Whole milk is first separated into skim milk and cream by centrifugal force in a separator. The cream is then pasteurized either through batch process or a continuous process. In batch process, cream is heated to a minimum of 740 C and held at the temperature for 30 minutes, while in continuous process it is heated at 850 C and is held for only 15 seconds. The heat treatment destroys bacteria, inactivates enzymes and gives the cream a cooked flavour. After pasteurization, a tempering process is applied in which cream is held at 100 C to allow rearrangement of the fat crystals. The cream is then churned to produce butter. Continuous churning converts cream into butter in a few minutes while batch churning takes a longer time. Composition and colour adjustment is also done at the churning stage and a salt solution is added to give the finished butter a salty taste. About 13 liters of milk with 6% fat is required to produce 1 kg of butter. Cheese :There are thousands of varieties of cheese in the world. The type of manufacturing process used in the production of cheese determines its flavor, which ranges from extremely mild to very sharp, and its texture, which can be
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semi-solid to almost stone hard. Cheese making requires four main ingredients - good quality milk, rennet or coagulating acids, culture and salt. Cheese is generally made from cow's milk. About 10 liters of milk with 3% fat is required for making 1 kg of cheese. Natural Cheese is made by coagulating or curdling milk, stirring & heating the curd, draining off the whey and collecting or pressing the curd. The desired flavor and texture is obtained by varying the temperature, humidity and time period of the curing process. Sweetened condensed milk is usually made from fresh milk by adding sugar to the milk pre-warming and concentrating the mixture in the high vacuum. The syrupy milk is then cooled so that the lactose crystallizes as very fine crystals
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the authorities. This will help them in marketing their products in foreign countries in processed form. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at around Rs7,00,000mn
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PROFILE OF PARAG Parag Milk & Milk Products Pvt. Ltd. Indian Supplier & Manufacturer of India Processed Cheese Parag Milk & Milk Products Pvt. Ltd. Offers Gowardhan Processed Cheese. This Cheese Has Smooth Texture And Uniform Consistency. Gowardhan Pasteurised Table Butter Parag Milk & Milk Products Pvt. Ltd. Offers Gowardhan Pasteurised Table Butter. This Butter Made From The Cow`S Milk Under Hygieni... Product Profile Butter, Cheese, Cheese Powder, Ghee, Gulab Jamun Mix, Liquid Milk, Skim Milk Powder, Cream Milk Powder Jam Industry Focus
Contact Details Address : Awasari Phata, Manchar, Pune, Maharashtra 410503 91-2133-224763
Telephone No. :
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Parag Milk & Milk Products Pvt. Ltd is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Maharastra which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Members: 13 district cooperative milk producers' Union
2.6 million
12,792
Milk collection
Milk collection
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Sales Turnover
Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 29225 37736 42778 US $ (in million) 355 400 450 455 493 493 500 500 575 616 672 850 1050
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Parag Butter Parag Lite Low Fat Breadspread Parag Cooking Butter
Cheese Range:
Parag Pasteurized Processed Cheddar Cheese Parag Processed Cheese Spread Parag Pizza (Mozarella) Cheese Parag Shredded Pizza Cheese Parag Emmental Cheese Parag Gouda Cheese Parag Malai Paneer (cottage cheese) Utterly Delicious Pizza
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Parag Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Parag Amrakhand Parag Mithaee Gulabjamuns Parag Mithaee Gulabjamun Mix Parag Mithaee Kulfi Mix Avsar Ladoos
Parag Shakti 3% fat Milk Parag Cool Parag Taaza 1.5% fat Milk Parag Gold 4.5% fat Milk Parag Lite Slim-n-Trim Milk 0% fat milk Parag Shakti Toned Milk Parag Fresh Cream Parag Snowcap Softy Mix
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Pure Ghee:
Parag Infant Milk Formula 1 (0-6 months) Parag Infant Milk Formula 2 ( 6 months above) Paragspray Infant Milk Food
Milk Powders:
Parag Full Cream Milk Powder Paragya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener
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Fresh Milk:
Parag Taaza Toned Milk 3% fat Parag Gold Full Cream Milk 6% fat Parag Shakti Standardised Milk 4.5% fat Parag Slim & Trim Double Toned Milk 1.5% fat Parag Saathi Skimmed Milk 0% fat Parag Cow Milk
Curd Products:
Yogi Sweetened Flavoured Dahi (Dessert) Parag Masti Dahi (fresh curd) Parag Masti Spiced Butter Milk Parag Lassee Parag Chazz
Parag Icecreams:
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(Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae) Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta)
Brown Beverage:
Milk Drink:
Parag Kool Flavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)
Health Beverage:
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casts her sometime as the coy, shy Madhuri, a bold sensuous Urmila or simply as herself, dressed in her little polka dotted dress and a red and white bow, holding out her favourite packet of butter. For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So much so that the ads are now ready to enter the Guinness Book of World Records for being the longest running campaign ever. The ultimate compliment to the butter came when a British company launched a butter and called it Utterly Butterly, last year. It all began in 1966 when Sylvester daCunha, then the managing director of the advertising agency, ASP, clinched the account for Parag butter. The butter, which had been launched in 1945, had a staid, boring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine, corporate ads. In India, food was something one couldn't afford to fool around with. It had been taken too seriously, for too long. Sylvester daCunha decided it was time for a change of image. The year Sylvester daCunha took over the account, the country saw the birth of a campaign whose charm has endured fickle public opinion, gimmickry and all else. The Parag girl who lends herself so completely to Parag butter, created as a rival to the Polson butter girl. This one was sexy, village belle, clothed in a
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tantalising choli all but covering her upper regions. "Eustace Fernandez (the art director) and I decided that we needed a girl who would worm her way into a housewife's heart. And who better than a little girl?" says Sylvester daCunha. And so it came about that the famous Parag Moppet was born. That October, lamp kiosks and the bus sites of the city were splashed with the moppet on a horse. The baseline simply said, Thoroughbread, Utterly Butterly Delicious Parag,. It was a matter of just a few hours before the daCunha office was ringing with calls. Not just adults, even children were calling up to say how much they had liked the ads. "The response was phenomenal," recalls Sylvester daCunha. "We knew our campaign was going to be successful."
For the first one year the ads made statements of some kind or the other but they had not yet acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid concept would give them extra mileage, more dum, so to say. It was a decision that would stand the daCunhas in good stead in the years to come. In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative team working on the Parag account came up with a clincher -'Hurry Parag, Hurry Hurry'. Bombay reacted to the ad with a fervour that was almost as devout as the Iskon fever.
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That was the first of the many topical ads that were in the offing. From then on Parag began playing the role of a social observer. Over the years the campaign acquired that all important Parag touch. India looked forward to Parag's evocative humour. If the Naxalite movement was the happening thing in Calcutta, Parag would be up there on the hoardings saying, "Bread without Parag Butter, cholbe na cholbe na (won't do, won't do). If there was an Indian Airlines strike Parag would be there again saying, Indian Airlines Won't Fly Without Parag. There are stories about the butter that people like to relate over cups of tea. "For over 10 years I have been collecting Parag ads. I especially like the ads on the backs of the butter packets, "says Mrs. Sumona Varma. What does she do with these ads? "I have made an album of them to amuse my grandchildren," she laughs. "They are almost part of our culture, aren't they? My grandchildren are already beginning to realise that these ads are not just a source of amusement. They make them aware of what is happening around them." Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy not to play it safe. There are numerous ads that are risque in tone. "We had the option of being sweet and playing it safe, or making an impact. A fine balance had to be struck. We have a campaign that is strong enough to make a statement. I didn't want the hoardings to be pleasant or tame. They have to say something," says Rahul daCunha.
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"We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The Indian Airlines one really angered the authorities. They said if they didn't take down the ads they would stop supplying Parag butter on the plane. So ultimately we discontinued the ad," he says laughing. Then there was the time when the Parag girl was shown wearing the Gandhi cap. The high command came down heavy on that one. The Gandhi cap was a symbol of independence, they couldn't have anyone not taking that seriously. So despite their reluctance the hoardings were wiped clean. "Then there was an ad during the Ganpati festival which said, Ganpati Bappa More Ghya (Ganpati Bappa take more). The Shiv Sena people said that if we didn't do something about removing the ad they would come and destroy our office. It is surprising how vigilant the political forces are in this country. Even when the Enron ads (Enr On Or Off) were running, Rebecca Mark wrote to us saying how much she liked them." Parag's point of view on the MR coffee controversy There were other instances too. Heroine Addiction, Parag's little joke on Hussain had the artist ringing the daCunhas up to request them for a blow up of the ad. "He said that he had seen the hoarding while passing through a small district in UP. He said he had asked his assistant to take a photograph of himself with the ad because he had found it so funny," says Rahul daCunha in amused tones. Indians do have a sense of humour, afterall.
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From the Sixties to the Nineties, the Parag ads have come a long way. While most people agree that the Parag ads were at their peak in the Eighties they still maintain that the Parag ads continue to tease a laughter out of them. Where does Parag's magic actually lie? Many believe that the charm lies in the catchy lines. That we laugh because the humour is what anybody would enjoy. They don't pander to your nationality or certain sentiments. It is pure and simple, everyday fun.
Our Product
PARAG means "priceless" in Sanskrit. The brand name "Parag," from the Sanskrit was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Parag products have been in use in millions of homes since 1946. Parag Butter, Parag Milk Powder, Parag Ghee, Paragspray, Parag Cheese, Parag Chocolates, Parag Shrikhand, Parag Ice cream, Nutrparag, Parag Milk and Paragya have made Parag a leading food brand in India. (Turnover: Rs. 42.78 billion in 2006-07). Today Parag is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organisation. And of a proven model for dairy development.
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Check out this vast and ever-growing range of 'tasteful' Parag delectables! "Please click here to download the latest PRODUCT DETAILER".
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(a) Ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers at competitive prices and; (b) Uphold institutional structures that empower milk producers and farmers through processes that are equitable. At Parag Dairy, processing of milk is controlled by process automation whereby state-of-the-art microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/ reliability and safety. Parag Dairy is an IS/ ISO-9002, IS15000 HACCP and IS-14001 EMS certified organization. Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for Testing and Calibration Laboratory (NABL)-Department of Science and Technology, Government of India. Parag Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad. Parag Dairy Milk has a market share of 66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Parag Dairy. The companys derives significant competitive advantage from its unique distribution network of bulk vending booths, retail outlets and mobile units. Parag Dairy ice creams launched in the year 1995 have shown continuous growth over the years and today boasts of approximately 62% market share in
44
Delhi and NCR. Parag Dairy also manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk, Lassi & Flavored Milk and most of these products are available across the country. The company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. Fresh produce from the producers is handled at the Companys modern distribution facility in Delhi with an annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies quality products in the international market. With increasing demand another state-ofthe-art fruit processing plant has been set up at Bangalore with fruit handling capacity of around 250 MT per day. Parag Dairy has also been marketing the Dhara range of edible oils for the last few years. Today it is a leading brand of edible oils and is available across the country in over 2,00,000 outlets. The brand is currently available in the following variants: Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil. Parag Dairy has also launched extra virgin Olive Oil under the Daroliva brand.
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Parag Dairy has over the last 3 decades, harnessed the power of farmer cooperatives to deliver a range of delicious products and bring a smile on your face. In times to come, Parag Dairy shall strive to remain one of Indias finest food companies.
Pricing Methods
As we said earlier, there is no "one right way" to calculate company pricing. Once company considered the various factors involved and determined company objectives for company pricing strategy, now company need some way to crunch the actual numbers. Here are four ways to calculate prices:
Cost-plus pricing - Set the price at company production cost, including both cost of goods and fixed costs at company current volume, plus a certain profit margin. For example, company widgets cost Rs.20 in raw materials and production costs, and at current sales volume (or anticipated initial sales volume), company fixed costs come to Rs.30 per unit. Company total cost is Rs.50 per unit. Company decide that company want to operate at a 20% markup, so company add Rs.10 (20% x Rs.50) to the cost and come up with a price of Rs.60 per unit. So long as company have company
costs calculated correctly and have accurately predicted company sales volume, company will always be operating at a profit.
Target return pricing - Set company price to achieve a target return-on-investment (ROI). For example, let's use the same situation as above, and assume that company have Rs.10,000 invested in the company. Company expected sales volume is 1,000 units in the first year. Company want to recoup all company investment in the first year, so company need to make Rs.10,000 profit on 1,000 units, or Rs.10 profit per unit, giving company again a price of Rs.60 per unit.
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Value-based pricing - Price company product based on the value it creates for the customer. This is usually the most profitable form of pricing, if company can achieve it. The most extreme variation on this is "pay for performance" pricing for services, in which company charge on a variable scale according to the results company achieve. Let's say that company widget above saves the typical customer Rs.1,000 a year in, say, energy costs. In that case, Rs.60 seems like a bargain - maybe even too cheap. If company product reliably produced that kind of cost savings, company could easily charge Rs.200, Rs.300 or more for it, and customers would gladly pay it, since they would get their money back in a matter of months. However, there is one more major factor that must be considered.
Psychological pricing - Ultimately, company must take into consideration the consumer's perception of company price, figuring things like:
Positioning - If company want to be the "low-cost leader", company must be priced lower than company competition. If company want to signal high quality, company should probably be priced higher than most of company competition.
Popular price points - There are certain "price points" (specific prices) at which people become much more willing to buy a certain type of product. For example, "under Rs.100" is a popular price point. "Enough under Rs.20 to be under Rs.20 with sales tax" is another popular price point, because it's "one bill" that people commonly carry. Meals under Rs.5 are still a popular price point, as are entree or snack items under Rs.1 (notice how many fast-food places have a Rs.0.99 "value menu"). Dropping company price to a popular price point might mean a lower margin, but more than enough increase in sales to offset it.
Fair pricing - Sometimes it simply doesn't matter what the value of the product is, even if company don't have any direct competition. There is simply a limit to what consumers perceive as "fair". If it's obvious that company product only cost Rs.20 to manufacture, even if it delivered Rs.10,000 in value, compan have a hard time charging two or three thousand dollars for it -- people would just feel like they were being gouged. A little market testing will help company determine the maximum price consumers will perceive as fair.
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Company price must be enough higher than costs to cover reasonable variations in sales volume. If company sales forecast is inaccurate, how far off can company be and still be profitable? Ideally, company want to be able to be off by a factor of two or more (company sales are half of company forecast) and still be profitable.
Company have to make a living. Have company figured salary for company costs? If not, company profit has to be enough for company to live on and still have money to reinvest in the company.
Company price should almost never be lower than companys costs or higher than what most consumers consider "fair". This may seem obvious, but many entrepreneurs seem to miss this simple concept, either by miscalculating costs or by inadequate market research to determine fair pricing. Simply put, if people won't readily pay enough more than company cost to make company a fair profit, company need to reconsider company business model entirely. How can company cut company costs substantially? Or change company product positioning to justify higher pricing?
Pricing is a tricky business. Company certainly entitled to make a fair profit on company product, and even a substantial one if company create value for company customers. But remember, something is ultimately worth only what someone is willing to pay for it.
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milk production has declined by 2 per cent in the last three years, while milk production in India has increased by 4 per cent. Having attained self-sufficiency in foodgrain production, there is a need to plan for strategic diversification of Indian agriculture to ensure sustainability and nutritional adequacy. Diversification of Indian agriculture focused on dairying and export of dairy products represents excellent potential leading to prosperity of the farming community representing 65 per cent of the population. With 198 million cattle and 86 million buffaloes, India has the largest population of milch animals in the world. These livestock constitute more than 50 per cent of the buffaloes and 20 per cent of the cattle in the world. Although number of livestock is large, average milk production is far below their genetic potential. With a wellcrafted strategic approach, this huge animal wealth could be utilised in right perspective for enhancement of milk production without many incremental inputs. In contrast, a small rise in milk production requires intensive inputs and crossing of genetic barriers in advanced countries of the world, where milch animals are utilised to produce milk at their maximum potential. With a modest effort towards managing increased milk production, India would match/exceed the milk production of major players of international trade in dairy commodities. It is this potential that can catapult India as a major dairy exporting country on global basis. A nation-wide programme for prevention and control of animal epidemics, and creation of diseasefree zones coupled with efficient delivery of artificial insemination network will have tremendous impact on improving the productivity of milch animals. This, in turn, would strengthen Indias entry into the global milk products market, as well as improve the quality and viability of the entire Indian dairy industry. Unlike other milk producing countries, 54 per cent of Indias milk comes from buffaloes, which is endowed with unique processing qualities. Buffalo milk is creamier, whiter, and richer in fat, SNF, minerals like Ca and P, besides possessing relatively higher levels of physiologically significant bio-immune and extranutritional factors. These unique processing attributes render buffalo milk especially suitable for commercially important dairy products such as Mozzarella cheese, cream, butter, dairy whiteners, paneer, khoya, etc. India can emerge as the leading supplier of these products in the world market. Buffalo milk fat is superior with regard to less cholesterol and has more tocopherol, which is a natural antioxidant. Indian dairy industry has to derive maximum benefits of the uniqueness and
49
positive virtues of buffalo milk to obtain the competitive edge in the global dairy market. Indian agriculture is essentially a crop-livestock production system, where crop residues are fed to the milch animals. Feeding cost being the main determinant of the cost of milk production, India is highly competitive against the industrially advanced countries, where stall-feeding is practiced. Besides this, dairy farmers utilise family labour available in their own household for milk production activities. Due to low labour cost, the cost of milk production is significantly lower. The most important strength of Indian dairy industry is its cost competitiveness. Today, India either matches or surpasses countries like New Zealand, Australia and Argentina as the cheapest producer of milk on global basis. Overall, 70 per cent of worlds milk is more expensive than Indian milk. India is located amidst perennially milk deficit countries in Asia and Africa. Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman, and other Gulf countries located in close proximity to India. China, India and Indonesia alone account for more than 40 per cent of the worlds six billion-plus population. Economic growth and changes in dietary preferences in the Southeast Asian countries have stimulated consumption of dairy products, even though it is not a part of their traditional diets. Growth of quick service restaurants (QSRs), particularly pizza chains, and growing bakeries and other food processing industries also increase the demand for cheese and other dairy products. India, thus, enjoys a strategically advantageous geographical location in terms of international trade of dairy products. Global opportunities available to the Indian dairy industry arise primarily out of the availability of a large quantity of competitively priced milk. As the Indian dairy sector produces milk without any subsidies, the country stands to gain from the fair implementation of WTO agreements. India needs to prepare itself to access the markets of developed countries such as the European Union, USA and Japan, and has already an edge with regard to the deficit regions of South and Southeast Asia, Middle East and Africa for supply of dairy products at competitive price. However, quality of milk produced in India falls below the internationally accepted standards. Development of awareness, mindset and commitment on improving the quality of milk is necessary. Intensive efforts are needed to meet the WTOs Sanitary and Phytosanitary (SPS) and Technical Barriers of Trade
50
(TBT) agreements and Codex Alimentarius Commission guidelines on quality and safety. In order to propel the export of milk and milk products, there is an urgent need to discuss and institutionalise the various provisions of SPS and TBT agreements along with international standards of Codex as reference points. Marketing Strategic marketing of dairy products needs to be supported through innovative policies that encourage both multilateral and bilateral negotiations with importing countries, and thus, help to regulate and monitor production conforming to international standards. Effective strategy will also require availability of national and international databases to inform on assessments of production, prices, production conditions, consumer preferences, risks, and the quality of dairy products. Such databases will also support negotiations at WTO and bilaterally with importing countries so as to ensure that SPS/TBT measures are based on sound scientific principles. Milk Collection Group efforts for the collection of milk in a more hygienic way should be promoted. Recommendation: Networking of women groups for regional milk collection centres by spreading the Amul model, could be adopted. Quality Certification Steps need to be taken to obviate the multiplicity of agencies to issue quality certification. R&D Support for Product Diversification Since the establishment of GATT, way has been paved for expanding the international trade of agriculture/dairy commodities. Most of the global dairy products exporting countries have been planning crucial strategies for milk production aimed at reducing subsidies for dairy farmers in a phased manner. Over the years, considerable expertise has been developed in dairy products on strengthening internal economies vis-vis international marketing. For instance, the East European countries have consciously reduced milk production by 30 per cent compared to 1970 levels. On the other hand, France has maintained steady growth, while reducing the number of dairy cattle. In view of the glut in butter stocks, Australia and Israel have been breeding dairy cattle for milk with low fat content.
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Monitoring Quality Under the SPS/TBT agreements, it is necessary to constantly monitor the quality of raw milk, production conditions and the quality of products for pesticides, pathogens and veterinary drugs. This requires quick and accurate tests that can be carried out by monitoring agencies. The present testing procedures are cumbersome and time consuming. Research must, therefore, focus on developing quality-testing kits for application under field conditions to meet urgent needs of the industry. Recommendation: Intensive R&D efforts need to be directed for the development of sensitive field-testing kits for on-the-spot detection of objectionable contaminants of chemical or microbial origin. Enhancement of Shelf life For international trade/marketing/distribution of dairy products and shelf life considerations are of vital importance, since they need to stay fresh during shipping and storage. This requires research on improving the shelf life and product packaging. Recommendation: Innovative technologies need to be developed, utilising, preferably, innate anti-microbial components of milk coupled with natural metabolites of microbial/biotechnological origin which represent newer opportunities for the enhancement of shelf life of dairy products intended for export markets. Traditional Indian Dairy Products A niche global market has strongly emerged for ethnic Indian dairy products. Besides the NRIs, estimated to be 15 million, certain developed countries (mainly Canada, Australia, New Zealand and UK) have already taken major initiatives to cater to this market. Indications are, that the market is fast growing with considerable future potential. Large populations of Indian origin settled in Oceania, Middle East, Western Europe, and North America represent a lucrative export market of over US $ 1.5 billion. There is an opportunity to take advantage of this niche market by developing dairy products of Indian ethnic origin meeting the quality and standards required for the global market. Genetically Modified Dairy Products Dairy products/food ingredients from genetically modified microbial processes are fast entering and are being increasingly utilised by the process industry. Biotechnology and international trade are at the forefront of global debate, as United States and European
52
Union continue to hold dramatically different positions over this contentious issue. Differing trans-Atlantic perceptions on food safety keep developing countries from achieving food security and benefiting from free trade. There is a need to resolve this issue in respect of their safety from the perspectives of both public health and the environment. Recommendation: i) Suitable regulations for dealing with genetically modified dairy products should be developed through research on their biosafety aspects, both from public health and environmental perspectives. ii) There is need for a Science Summit of the representatives from all relevant sectors to resolve the issues concerning international trade of dairy commodities. Necessary legislative R&D support to carry out all these activities should be provided by institutions like IFPRI, Codex, WTO, NDRI, NDDB, and SAUs. Anticipatory Research Importing countries, particularly the developed countries, are likely to increasingly resort to non-tariff barriers to restrict trade in dairy products, as evidenced by the deliberations of the Cancun meet of September, 2003. It is necessary to be prepared for and address such developments through futuristic research on market developments, consumer preferences and country policies with respect to dairy products. Recommendation: The dairy sector should be prepared to deal with changing strategic deployment of non-tariff barriers by developed countries through futuristic research on global trends in market development and access, environmental and trade issues, and consumer preferences. Requisite R&D support to carry out all these activities needs to be provided by institutions like NDRI, NDDS, and SAUs. Infrastructure Requirements In order to create potential market for newer dairy products, necessary infrastructure facilities need to be developed. Demonstration Centres For demonstration and dissemination of newer technologies as well as for manpower development, suitable infrastructure is required. Recommendation: Semi-commercial Technology Demonstration and Dissemination
53
Centres be established for the dissemination of newer products, processes and equipment, as well as for the training of dairy personnel towards export promotion of dairy products. Agencies like EIC and CITA should develop suitable agendas to take necessary steps for fulfilling this strategic requirement. Packaging Systems Extensive use of plastic materials for packaging dairy/food products poses increasingly insurmountable environmental problems for disposal after use. Furthermore, options for packaging materials/equipments are exceedingly narrow for the indigenous dairy sector, besides being very costly. New packaging concepts/biodegradable materials aimed at product protection, enhanced functionality and food safety, need to be developed as essential components of product development, especially for the export market. 3.1 Curriculum Modification To keep pace with the rapidly changing global scenario in the processing industry, relevant modification in the curriculum of Dairy Education programmes should be effected. Recommendation: The curriculum should be strengthened with focus on quality management, information technology, and agribusiness with special emphasis on international trade and marketing. Awareness Creation Awareness programme should be planned for imparting new knowledge in the latest global developments/trends in the dairy sector. Recommendation: Training programmes on hygienic milk production, processing, packaging, and marketing should be organised. Skill Development For industrial application of modern/innovative technologies, the manufacturers should be equipped with necessary knowledge/skills through well-structured training programmes. Recommendation: Training the manufacturers by exposing them to the concept of computer integrated manufacture for achieving TQM through statistical quality control (SQC)/statistical process control (SPC). Development of Business Ethics Paradoxically, the image of Indian dairy industry is very low among the trading countries. This is a very serious issue, which needs to be addressed through wellorchestrated
54
campaigns at the national level. Personnel engaged in export should be encouraged to bestow attention to ethics and value system while doing business. Recommendation: Training of personnel in business and enforcement agencies in business ethics and developing internal value systems that might enforce their implementation. Environment The quality of raw milk is the primary concern in the export of dairy products to overcome non-tariff (SPS/TST) barriers. This will be determined by the feed quality, sanitation, environmental pollution, and the availability of power and clean water. The quality standards of PFA need to be harmonised with those of the Codex standards that govern the international trade of dairy products. It is necessary to sensitise the Environmental Protection Agencies on the implications of the WTO Agreements related to dairy sector. Recommendation: The Environmental Protection Agencies should be sensitised to the urgency of the needs of the dairy sector to develop and implement environmental regulations that may effectively lead to lowering the quantities of pesticides and chemical contaminants in raw milk to internationally acceptable standards. Animal Health The present regulations and programmes for animal health aim more at curing than prevention of diseases. Preventive care is important for the export of dairy products, as the SPS Agreement includes clauses that provide for ensuring that areas from where the dairy products are exported are pest- and disease-free. This would not be possible to achieve on a countrywide basis, as the dairy sector is dispersed over millions of small farms across the entire country. It is, therefore, necessary to create Export Promotion Zones in the country that can conform to the international standards of quality measures. Effective monitoring and enforcement of environmental standards would also be possible in such zones. . Monitoring Animal Health The existing infrastructure for monitoring animal health is far too inadequate and does not meet the international norms. It needs to be augmented, modernised and networked to facilitate effective monitoring of contaminants in dairy products. Rural Infrastructure Clean water, adequate power supply and sanitation are important to implement the
55
above recommendations. Recommendation: Adequate rural infrastructure in terms of power, roads, clean water supplies, and sanitation, should be ensured at least in the Export Promotion Zones. Quality Management Globally, quality management systems like GMP, GHP, HACCP and ISO 9000, are being adopted by the dairy sector to assure the consumers of safe and high-quality dairy India has the potential to become one of the leading players in milk and milk product exports. Locational advantage : India is located amidst major milk deficit countries in Asia and Africa. Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close to India.
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Parag Butter
Cheese Range:
Pure Ghee:
Milk Powders:
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Fresh Milk:
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RESEARCH METHODOLOGY
Methodology for a study like this is the most important part .The method of study operate by me is totally is to increase $ to gather the more information regarding this project . The major emphasis in such studies is on the discovery of the ideas fruitful relevant information. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspect of a problem under study . I collected the information regarding this project through I. II. PRIMARY DATA SECONDARY DATA
Primary data is collected by the customers and Parag retailers. Secondary data is collected by retailer & personal interview. Since our research is descriptive type, so research design is also descriptive.
Sample design:
Sampling is a process of obtaining information about an entire population by examining only a part of it.
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As depicted below, I have taken 3 sample size regarding my project. I took information from 14 areas with the help of 14 retailers & 50
customers.
I have chosen this sample size as per my capacity . Sample size: AREA: RETAILER : CUSTMER: 7 14 30
60
MARKET SHARE OF PARAG SPRAY IN % AGE (Lucknow TERRITORIES PARAG SPRAY PARAG DAIRY LECTOGIN Sigra lucknow Pandey pur kantt chitaipur Bas fatak Ram nagar 1.40 0.20 2.40 1.40 1.00 3.70 3.61 4.00 5.12 4.50 1.40 2.81
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TERRITORIES
PARAG BUTTER
Sigra lucknow Pandey pur kantt chitaipur Bas fatak Ram nagar
0 72 0 0 0 42
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MARKET SHARE OF PARAG BUTTER IN %AGE LUCKNOW TERRITORIES PARAG BUTTER PARAG BUTTER Sigra lucknow lanka Pandey pur kantt chitaipur Sadar Bazar TOTAL 3.83 2.21 17.76 8.49 4.56 16.32 92.58 0 .72 1.80 0 0 0 7.42 DAIRY
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TERRITORIES Sigra lucknow lanka Pandey pur kantt chitaipur Bas fatak TOTAL
PARAGYA 27 6 51 46 0 24 589
Parag Dairy 0 5 2 8 0 2 57
OTHERS 9 6 25 28 16 17 109
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TERRITORIES
PARAGYA
Parag Dairy
OTHERS
Sigra lucknow lanka Pandey pur kantt chitaipur Bas fatak TOTAL
65
66
Value, Rs. million) Quantity Value Skimmed powder Milk and Milk Food 8.27 for babies Milk cream Sweetened condensed milk Whey 78.46 3.75 11.50 299.97 1.01 6.00 0.342 332.23 41.73 28.04 2.84 1.00 9.22 0.084 0.97 60.39 7.22 2.019 111.37 4.27 11.00 2.02 Quantity Value Quantity Value 19.64 5.00 0.375
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2.1 36.78
8,72.7 -
68
I.
Parag, 55%
Interpretation : 55per cent consumers use Parag & 30 per cent used others and last 15 percent consumer used Parag dairy products.
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II.
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Ghee 32%
48%
38%
Parag
Amul Others 12%
Milk
Butter
Cheese
Interpretation : Parag Ghee used consumer 32%, Parag Ghee used 20% and others 48% . Milk used by consumer 28% Parag, 25% Parag and others 47%. Butter used by consumer 38% Parag, 12% Parag and 40% Others.
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III.
No, 20%
Yes, 80%
Interpretation : 80% Consumer satisfied with their products and 20 % consumer not satisfied their products.
IV.
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80% 80% 70% 60% 60% 50% 40% 40% 32% 30% 20% 20% 10% 0% Quality Brand Price Taste 30% 68% 70%
Parag Amul
Interpretation : Parag Quality inclined to products by consumer 60%, Parag satisfied 40%. Brand preferred by consumer eg. 68% Parag and 32% Parag. Price satisfaction with consumer 70% Parag and 30% Parag.
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V.
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Taste Price Packing Style 20% 30% 25% 25% 55% 80% 75% 75% 70% 60%
85%
60% ParagYes
15%
Quality
Interpretation : All consumer satisfied with their product and some consumer change product Taste by consumer Parag 80% and no20% and Parag with satisfied 45% and not satisfied 45%. Price by consumer Parag 30% and no70% and Parag with satisfied 40% and not satisfied 60%. packing by consumer Parag 25% and no75% and Parag with satisfied 75% and not satisfied 25%. Quality wise Parag 15% and no 85% and Parag with satisfied 60% and not satisfied 40%.
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Parag, 50%
Interpretation : 50per cent consumers demand for Parag dairy products & 30 per cent consumer preferred others branded products and last 20 percent consumer prefered Parag dairy products.
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II.
Reason
Amul
32% Taste 68% Parag
0%
10%
20%
30%
40%
50%
60%
70%
80%
Interpretation : Parag dairy products Packing Style wise by consumer 80%, Parag preferred 20%. Brand preferred by consumer eg. 70% Parag and 30% Parag. Taste preferred by consumer 68% Parag and 32% Parag. Price wise by consumer 60% Parag and 40% Parag.
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III.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Ghee Milk Butter Cheese 32% 38% 28% 36% 20% 25% 12% 22% Others Amul 48% 47% 40% 50%
Parag
Interpretation : All consumer Preferred with their product and some consumer change product Taste by consumer Parag 80% and no20% and Parag with Preferred 45% and not Preferred 45%. Price by consumer Parag 30% and no70% and Parag with Preferred 40% and not Preferred 60%. packing by consumer Parag 25% and no75% and Parag with Preferred 75% and not Preferred 25%. Quality wise Parag 15% and no 85% and Parag with Preferred 60% and not Preferred 40%.
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FINDINGS
1. "The company caters to the Indian palate, which is its primary driver of success". In light of this statement, critically examine the marketing strategies adopted by Parag & Parag Dairy to capture a sizeable market share of the organized Dairy based food Product in India. 2. In the modern competitive scenario, promotion is a key element in the marketing mix of a company. Critically analyze the promotion strategies adopted by Parag India Pvt. Ltd. What other efforts must the company take to effectively promote its products? 3. Dairy based Products contribute a major share of the revenues of Parag. Given the competitive scenario in the Dairy Products in India, where competitors such as Parag Dairy are introducing several innovative products, what measures must Parag take to remain competitive? Explain in detail.
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Company should maintain the healthy relationship with market distribution channel i.e. whole seller, distributor, retailers which will boost the brand image. 7. Company should check the market real position help the trainees and other survey organizations. 8. Company should launch its website and use new advertising channels;
i.e. Trailer in cinema halls Hoardings Spencer any education scholarship or games.
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CONCLUSION
I have studied and analyzed the Dairy based food Product Market of Parag & Parag Dairy Products at Lucknow on different aspects of the markets, outlets, distribution & consumers. The survey was conducted in various areas of Lucknow city with great enthusiasm. This project report Concludes that
Parag & Parag Dairy are easily available in various parts of Lucknow. The Parag distribution channel of the Parag is much strong the most important thing, which I feel to improve is the availability to retailers & consumers. The retailers & consumers both promotes either Parag or Parag Dairy of its brands for could be with regard to order processing, warehousing,
inventory management & transportation; besides that shop covering, exit from the market by the salesmen glow shine board, schemes, incentives, prizes, gifts, discount, returning of defective goods, proper supply should be improved. My job was to make marketing managers aware of all the problems so that a proper course of action be required to be undertaken.
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QUESTIONNAIRE
CUSTOMER: NAME: I. ADDRESS: INCOME:
II.
Which of the product mostly you go for? a) Ghee b) milk c) butter d) cheese
III.
REASON: IV. Why are you inclined to your product? a) quality V. b) brand c) price d) taste
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RETAILER: NAME: I.
ADDRESS: INCOME:
In dairy products, which company product demand is higher? a) Parag b) Amul dairy c) others
II.
III.
Which product of Parag is preferred by customers a) ghee e) any other b) milk c) cheese d) butter
Which product of Parag dairy is preferred least by customers? a) ghee e) any other b) milk c) cheese d) butter
V.
Which product of parag is preferred least by customers? a) ghee e) any other b) milk c) cheese d) butter
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VI.
of
Parag
dairy
is
preferred
least
by
b) milk
c) cheese
d) butter
e) any other VII. Rank the preferences of consumers for parag & Parag dairy.
Parag dairy
Others
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COMPARATIVE STUDY OF PARAG AND PARAG DAIRY PRODUCTS Consumer Preferences Ghe e 1. Price 2. Quality Low Goo d 3. Taste Goo d 4. Packing Style Best Low Goo d Goo d Best Best Best Good Good Bette r Bette r Bette r Bette r Better Better Better Better Parag Dairy Milk Butte r Low Good Chees e Low Good High High High High Ghee Parag Milk Butte r High High Chees e High High
QUESTIONNAIRE
Name: __________________________________________
Age:
__________________________________________
Address:
__________________________________________
Occupation: __________________________________________
Income:
__________________________________________
Gender:
__________________________________________
Marital Status:
__________________________________________
{ } { } { } { }
a. Yes
{ }
b. No
{ }
d. __________________
{ } { } { } { }
a. Loose b. Packet
{ } { }
{ } { } { }
d. 15 Kg and above
{ }
Q7. Are you habitual of any other Parag Dairy Milk product?
a. Yes b. No
{ } { }
a. Yes b. No
{ } { }
a. Yes b. No
{ } { }
a. __________________
b. __________________ c. __________________
d. __________________
d. __________________
d. __________________
The milk Parag dairy are really sticky. Is there something wrong?
d. __________________
d. __________________
d. __________________
d. __________________
d. __________________
d. __________________
d. __________________
Are milk of Parag Dairy safe for other than local dairy?
d. __________________
d. __________________
A:-Work Environment:1- Do you have proper working hours as per rules? Ans: ( ) yes ( ) no
5-Do you have enough time between works to rest and if then what do you do? Ans: ( ) yes ( ) no 6- Is there any scheme or fund for your family from the side of Hotel? Ans: ( ) yes ( ) no
2-Do you attend the training program held in the organization? Ans: ( ) yes ( ) no
Ans: (
) yes
) no
6- How do apply learning to practice? Ans: ( ) yes ( ) no 7- How your learning practiced is assessed? Ans: ( ) yes ( ) no
4- Are the policies easy to understand? Ans: ( ) yes ( ) no 5- Does clear policy give you satisfaction at work? Ans: ( ) yes ( ) no 1- Is salary up to your expectation? Ans: ( ) yes ( ) no
5- Do you get monetary reward to good work? Ans: ( ) yes ( ) no 6- Do you have promotion and transfer in the department for growth? Ans: ( ) yes ( ) no 1- Is communication with in your department open and clear? Ans: ( ) yes ( ) no 2- Is your supervisor communicating clearly as to what is expected of you? Ans: ( ) yes ( ) no 3- How is the coordination between supervisor and subordinate? Ans: ( ) yes ( ) no 4- Do you have notice board in your department? Ans: ( ) yes ( ) no 5- Do you attend meeting in the organization? Ans: ( ) yes ( ) no
6- Do you get positive feedback through communication? Ans: ( ) yes ( ) no 7-Do you have proper communication from other department? Ans: ( ) yes ( ) no 8-Do you face any problem if communication is not proper? Ans: ( ) yes ( ) no