A PROJECT REPORT
BY
ASHUTOSH PARMAR [ROLL NO: 0901470002]
MRS.PRIYANKA SHARMA
Submitted to
As a part of
Departmental Research Work Assignment
Of
MBA Course (2009-2011).
1
CERTIFICATE
This is to certify that the students whose names are mentioned below have successfully
Completed the Research Work Assignment during their Second Semester of MBA
Course (2009-2011). During this assignment they have worked on a project titled “A
Aditya Kumar
0901470002
2
DECLARATION
I here by declare that the project, which is being presented in this report, entitled “A
LUCKNOW”” Is an authentic record of my own work during the period of one month
The information which is given by me in this report is exclusively for the concerned
organization and the institute would not be submitted by me any where else.
ADITYA KUMAR
SRMSCET, Bareilly
3
ACKNOWLEDGEMENT
I am extremely thankful to our Venerable H.O.D Mr. Anant Kumar Srivastava whose
Encouragement, moral support provides the valuable guidance, which has been a source
of Inspiration to us.
I am also grateful to my project guide Mrs.Priyanka Sharma who helped me lot for
completing my summer training project report.
I would like to thank to all faculty members, my friends who helped me in my project of
our institute SRMSCET, BAREILLY.
I pay my sincere thanks to entire team of, Lucknow Producers' Co-op Milk Union Ltd, for
the constant support and helping in the successful completion of my project.
(ADITYA
KUMAR)
MBA (MARKETING)
4
PREFACE
In today’s scenario, it is not possible that we get knowledge about the market without
practical training. By the practical training a management student can understand the
increases the knowledge of students in real field of market & also integrates the theoretical
Accepting the above factors the management programs of our institute (SRMSCET
BAREILLY) has made practical training must for their management students. As a part of
COOP MILK UNION LTD. at LUCKNOW city. The purpose of the training was to study
about the Consumer Perception about Parag Products at LUCKNOW city only.
The tools & techniques used in the study are standard & modified according to the report
requirements. I used the primary and secondary data for collection of information. I had
enjoyed my summer training from the very first day. I tried to come across all the initial
steps related with my project in LUCKNOW PRODUCERS COOP MILK UNION LTD.
5
TABLE OF CONTENTS
CHAPTER- II
2: COMPANY PROFILE
2.1: About the company…………………………………………………… 30
2.2: Organizational Structure & Hierarchy……………………………….. 33
2.3: Products of the company……………………………………………... 39
2.3: SWOT Analysis………………………………………………………. 49
CHAPTER- III
3: PROJECT
3.1: Introduction of the project…………………………………………... 54
3.2: Research Objective ……………………............................................. 55
3.3: Research Methodology…………………………………………….... 65
CHAPTER- IV
4: DATA ANALYSIS
4.1: Data Analysis & Interpretation……………………………………… 71
4.2: Finding………………………………………………………………. 81
4.3: Suggestions & Limitations………………………………………….. 83
4.4: Bibliography…………………............................................................ 87
4.5: Annexure……………………………………………………………. 88
6
LIST OF TABLES-
PAGE NO.
7
LIST OF FIGURES-
PAGE NO.
8
CHAPTER-1
9
INDUSTRIAL
PROFILE
10
1.1: DAIRY INDUSTRY
PROFILE
Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to
entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest
growing markets for milk and milk products. A bagful of 'pearls' awaits the international
dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace
with the galloping progress around the world. As he expands his overseas operations to
India many profitable options await him. He may transfer technology, sign joint ventures
or use India as a sourcing center for regional exports. The liberalization of the Indian
India’s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO regulations
expected to come into force in coming years all the developed countries which are among
big exporters today would have to withdraw the support and subsidy to their domestic
milk products sector. Also India today is the lowest cost producer of per liter of milk in
the world, at 28 cents, compared with the U.S' 62 cents, and Japan’s $2.8 dollars. Also to
take advantage of this lowest cost of milk production and increasing production in the
country multinational companies are planning to expand their activities here. Some of
these milk producers have already obtained quality standard certificates from the
11
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
36% per annum to around Rs.48, 500 crores by year 2009. 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 2009, the value of Indian dairy produce is
00,000mn.
BACKGROUND
Indian dairy sector contributes the large share in agricultural gross domestic products.
Presently there are around 75,000 village dairy cooperatives across the country. The co-
operative societies are federated into 180 district milk producers unions, which is turn has
22-state cooperative dairy federation. Milk production gives employment to more than
82mn dairy farmers. In terms of total production, India is the leading producer of milk in
the world followed by USA. The milk production in 2008-2009 is estimated at 104mn
declined by 3 per cent in the last three years, according to FAO estimates, Indian
production has increased by 5 per cent. The milk production in India accounts for more
12
than 19% of the total world output and 59% of total Asia's production. The top five milk-
producing nations in the world are India, USA, Russia, Germany and France.
Although milk production has grown at a fast pace during the last three decades
(courtesy: Operation Flood), milk yield per animal is very low. The main reasons for the
dairy is already endowed with the first two. People in India love to drink milk. Hence no
efforts are needed to make it acceptable. Its availability is not a limitation either, because
of the ample scope for increasing milk production, given the prevailing low yields from
dairy cattle. It leaves the third vital marketing factor affordability. How to make milk
affordable for the large majority with limited purchasing power? That is essence of the
challenge. One practical way is to pack milk in small quantities of 250 ml or less in
polythene sachets. Already, the glass bottle for retailing milk has given way to single-use
13
sachets, which are more economical. Another viable alternative is to sell small quantities
market.
prices.
Major Players
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, etc. Amrut Industries,
once a leading player in the sector has turned bankrupt and is facing liquidation.
Export Potential
14
India has the potential to become one of the leading players in milk and milk product
exports. Lavational 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
Low Cost of Production: Milk production is scale insensitive and labor intensive. Due
chilling and refrigeration facilities. Also, training has to be imparted to improve the
Productivity: To have an exportable surplus in the long-term and also to maintain cost
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.
Future Prospects-India is the world's highest milk producer and all set to become the
world's largest food factory. In celebration, Indian Dairy sector is now ready to invite
NRIs and Foreign investors to find this country a place for the mammoth investment
15
Milk production is relatively efficient way of converting vegetable material into animal
food. Dairy cow’s buffalo’s goats and sheep can eat fodder and crop by products, which
are not eaten by humans. Yet the loss of nutrients energy and equipment required in milk
handling inevitably make milk comparatively expensive food. Also if dairying is to play
its part in rural development policies, the price to milk producers has to be remunerative.
In a situation of increased international prices, low availabilities of food aid and foreign
16
The National Dairy Development Board was created to promote, finance and support
to strengthen farmer cooperatives and support national policies that are favorable to the
Due to very wide dispersal of producing and consuming units of milk, the unorganized
sector continues to dominate the milk marketing in India. However, the market structure
for milk is constantly changing. The organized sector now handles above 20% of the milk
output in the country. The cooperative sector accounts for nearly 50% of this. There are
over 1.10 lakh milk producers cooperatives federated into district milk unions and state
dairy federations, which have organic links with the Mother Dairy at the nation level.
It is hearting to note that the milk producers in the Anand modal of milk production get
net of intermediation, about 60% of the final price. In other basic foods, the returns are as
low as 30% of the final price. NDDB supports the development of dairy Cooperatives by
providing them financial assistance and technical expertise. Over the years, brands in
17
milk products created by cooperatives have become synonymous with quality and value.
Brands like Amul (GCMMF), Vijaya (A.P.), Verka (Punjab), Saras (Rajasthan), Nandini
(Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned
customer confidence. The Dairy Cooperative Network I) include 170 milk unions ii)
operates in over 338 districts iii) covers nearly 1, 08574 village level societies IV) is
Milk production
India’s milk production increased from 88.1 million MT in 2003-04 to 105 million
MT in 2008-09.
India’s 3.8 percent annual growth of milk production surpasses the 2 percent
growth in population; the net increase in availability is around 2 percent per year.
Marketing
annual growth has averaged about 4.8 percent compounded over the last five
years.
18
Dairy cooperatives now market milk in about 200 cities including metros and
During the last decade, the daily milk supply per 1,400 urban consumers has
Innovation
Milk travels as far as 2,200 kilometers to deficit areas, carried by innovative rail
foreign exchange.
CONSTITUTION
The National Dairy Development Board has been constituted as a body corporate and
The National Dairy Development Board -- initially registered as a society under the
Societies Act 1860 -- was merged with the erstwhile Indian Dairy Corporation, a
company formed and registered under the Companies Act 1956, by an Act of India's
Parliament - the NDDB Act 1987 (37 of 1987), with effect from 12 October, 1987. The
new body corporate was declared an institution of national importance by the Act.
19
AIMS AND OBJECTIVES OF NDDB
Dairy Development Programmed in State at raising the levels of income of their doors, as
well as providing good quality milk and milk products to consumers, Particularly of the
agriculture, especially for the weaker sections of the society in the rural areas. Adequate
provision has been made for technical and attendant services such as artificial
OBJECTIVES
Federation.
community.
To establish collection and refrigeration centers, liquid milk units and processing
facilities for distribution and sale of items purchased from various sources.
Dairy Cooperatives account for the major share of processed liquid milk marketed in the
country. Milk is processed and marketed by 170 Milk Producers' Cooperative Unions,
The Dairy Board's programmes and activities seek to strengthen the functioning of Dairy
21
Over the years, brands created by cooperatives have become synonymous with
quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras
(Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among
22
1.4: PRADESHIK CO-OPERATIVE DAIRY FEDERATION LIMITED
PROFILE
History of co-operative dairy industry in U.P. dates back to 1971 when “katra co-
operative milk society” was set up in Allahabad; Lucknow milk union was established in
established, keeping in mind the aim to consumers and also to help the backward classes
consumers, it’s other objective care to nearest milk production and by products of the
milk. Keeping these objectives and aim in mind pradeshik co-operative dairy federation
was set up as the state level as apex body for launching operation flood. The government
City : Lucknow
24
State : Uttar Pradesh
Pin : 226001
25
Agra Dugdh Utpadak Sahakari Sangh Ltd, Agra.
Aligarh Dugdh Utpadak Sahakari Sangh Ltd, Aligarh. A Milk Proc: 32,054 lpd.
Allahabad Dugdh Utpadak Sahakari Sangh Ltd, Allahabad. Av Milk Proc: 30,000 lpd.
Azamgarh Dugdh Utpadak Sahakari Sangh Ltd, Azamgarh.
Badaun Dugdh Utpadak Sahakari Sangh Ltd, Badaun. Av Milk Proc: 31,150 lpd.
Ballia Dugdh Utpadak Sahakari Sangh Ltd, Ballia. Av Milk Proc: 4,790 lpd.
Banda Dugdh Utpadak Sahakari Sangh, Banda.
Barabanki Dugdh Utpadak Sahakari Sangh Ltd, Barabanki. Av Milk Proc: 28,271 lpd.
Bareilly Dugdh Utpadak Sahakari Sangh Ltd, Bareilly.
Bijnore Dugdh Utpadak Sahakari Sangh Ltd, Bijnore. Av Milk Proc: 9,935 lpd.
Bulandshahr Dugdh Utpadak Sahakari Sangh Ltd,
Av Milk Proc: 70,668 lpd.
Bulandshahr.
Etah Dugdh Utpadak Sahakari Sangh Ltd, Etah. Soc: 124,
Av Milk Proc: 7,100 lpd.
Mems: 7,870.
Etawah Dugdh Utpadak Sahakari Sangh Ltd, Etawah. Av Milk Proc: 6,440 lpd.
Farrukhabad Dugdh Utpadak Sahakari Sangh Ltd, Fatehgarh. Av Milk Proc: 7,290 lpd.
Fatehpur Dugdh Utpadak Sahakari Sangh Ltd, Fatehpur. Av Milk Proc: 24,000 lpd.
Ferozabad Dugdh Utpadak Sahakari Sangh Ltd, Shikohabad.
Gangol Sahkari Dugdh Utpadak Sangh Ltd, Meerut. Av Milk Proc: 48,066 lpd.
Ghaziabad Dugdh Utpadak Sahakari Sangh Ltd, Hapur.
Ghazipur Dugdh Utpadak Sahakari Sangh Ltd, Ghazipur.
Gonda Dugdh Utpadak Sahakari Sangh Ltd, Gonda. Av Milk Proc: 4,100 lpd.
Gorakhpur Dugdh Utpadak Sahakari Sangh Ltd, Gorakhpur. Av Milk Proc: 4,331 lpd.
Hamirpur Dugdh Utpadak Sahakari Sangh, Hamirpur.
Hardoi Dugdh Utpadak Sahakari Sangh Ltd, Hardoi. Av Milk Proc: 17,000 lpd.
Jalaun Dugdh Utpadak Sahakari Sangh Ltd, Orai. Av Milk Proc: 11,381 lpd.
Jaunpur Dugdh Utpadak Sahakari Sangh Ltd, Jaunpur. Av Milk Proc: 2,700 lpd.
Kanpur Dugdh Utpadak Sahakari Sangh Ltd, Kanpur. Av Milk Proc: 83,700 lpd.
Lucknow Producers' Coop Milk Union Ltd, Lucknow. Av Milk Proc: 6,000 lpd.
Mainpuri Dugdh Utpadak Sahakari Sangh Ltd, Mainpuri. Av Milk Proc: 13,000 lpd.
Mathura Dugdh Utpadak Sahakari Sangh Ltd, Mathura. Av Milk Proc: 14,500 lpd.
Mirzapur Dugdh Utpadak Sahakari Sangh Ltd, Mirzapur.
Moradabad Dugdh Utpadak Sahakari Sangh Ltd, Moradabad. Av Milk Proc: 52,000 lpd.
Muzaffarnagar Dugdh Utpadak Sahakari Sangh Ltd, Muzaffarnagar.
Pratapgarh Dugdh Utpadak Sahakari Sangh Ltd, Pratapgarh. Av Milk Proc: 9,381 lpd.
Rae Bareli Dugdh Utpadak Sahakari Sangh Ltd, Rae Bareli. Av Milk Proc: 5,930 lpd.
Saharanpur Dugdh Utpadak Sahakari Sangh Ltd, Saharanpur. Av Milk Proc: 12,370 lpd.
Shahjahanpur Dugdh Utpadak Sahakari Sangh Ltd, Shahjahanpur. Av Milk Proc: 3,255 lpd.
Sitapur Dugdh Utpadak Sahakari Sangh Ltd, Sitapur. Av Milk Proc: 4,700 lpd.
Sultanpur Dugdh Utpadak Sahakari Sangh Ltd,
26Sultanpur. Av Milk Proc: 12,456 lpd.
Unnao Dugdh Utpadak Sahakari Sangh Ltd, Unnao Av Milk Proc: 9,000 lpd.
Varanasi Dugdh Utpadak Sahakari Sangh Ltd, Varanasi. Av Milk Proc: 16,657 lpd.
OBJECTIVES:-
27
Removing of the middlemen between the producer and consumers by the
procurement of the milk directly by the producers directly through village co-
operative society.
To increase the production of milk from milking animals by providing input to the
producers.
28
CHAPTER-II
29
2: COMPANY
PROFILE
30
31
2.1: ABOUT THE COMPANY
Established : 1938
Shifted to Ganeshganj.
Road, Lucknow
Mr. N.C.Chaturvedi
32
Per day production of milk : Initially 6000 liters
Despite several setbacks and hurdles the co-operative has steadily progressed. Operation
Flood-II, which was implemented in U.P in the year 1983-84, provided the much needed
to the co-operative. For the past few years Lucknow Pradeshik Co-operative Dairy
Federation has maintained its lead in area such as distribution, handling and revenue.
33
CORPORATE OVERVIEW
2005.PCDF’S come into existence in 23rd march 1938, with the simple intension of
ensuring a fair return to the producers. Which was implemented in UP is the year 1983-
1984 provided the much needed impetus to co-operation. The mission was to develop a
product mix that would not only promote sustained growth but also help member union to
develop adequate.
VISION: PARAG will continue to grow as an FMCG major, delighting national and
34
2.2: ORGANISATION STRUCTURE (LMU)-
BOARD OF DIRECTOR
MANAGING DIRECTOR
SALES
SUPERVISOR
35
AIMS & OBJECTIVE OF THE ORGANIZATION
Dairy development programme aims at raising the level of income of rural milk
producers, providing them convenient marketing facilities at their door, as well good
quality milk and milk products to the consumers, particularly of the urban areas a
reasonable price. Dairying also provide effective supplement to agriculture, especially for
the weaker section of the society in the rural areas. Adequate provision has been make for
technical and attendant service, such as artificial insemination, animal health fodder,
federation.
related milk societies and member of milk union and members of milk union.
community.
veterinary services, artificial insemination and animal’s health service to help co-
assistance.
“Amul” products still have to face very tough competition in Lucknow with
Parag due to the efficient distribution network of the marketing divisions of the
PCDF.
The marketing of PARAG products is monitored and affected through their six regional
marketing offices located at Lucknow, Rampur, and Delhi, Merrut and varanashi &
Kolkata. A regional manager (Marketing) who has a certain area office and also one
Products are transferred from General Manager (Marketing) at the head office to the
stockiest to through the Customer & Forwarding agent and around their respective
regions.
37
Regional Manager is assisted in his marketing function by team of sales Force who basic
task is the calls on the retailer, book order, increase the no. of retailers and study
competitive environment. The entire marketing operation monitored at the head office
level under the supervision of the General Manager (Marketing) through regular
reporting feedback received from the head office marketing staff that makes regular
The organization boasts of more than 3000 employees that cover a whole gamut of highly
Ghee, Table butter, Milk butter, Milk powder and other dairy products on a big scale.
PCDF has also distinction of having the most sophisticated & fully computerized first
vertical dairy n India. This is a state of the art project with its various sections located in
38
MARKETING:
The federation is marketing milk & milk products, under a common brand name
PARAG. The clientele includes several prestigious institutions in UP & Delhi besides the
Indian army. The sales network is spread throughout northern India. Although PCDF
OTHER PROGRAMMES:
Due to its reputation, efficiency, wide network and quality manpower, PCDF is currently
central/state govt.
These programmes have won many laurels for PCDF adding further to its reputation.
PCDF’s real sense of pride lies in the facts that its farmer member are heading surely and
steadily towards a prosperous future and the knowledge that its consumers reaffirm their
faith in PARAG, year after year. It is in this context, that PCDF’s success is to be
measured.
39
WELFARE PROGRAMMES IN LMU
FIRST CATEGORY:-
• Drinking water
• Restroom
• Uniform
• Canteen
SECOND CATEGORY:-
• Gratuity
• Provident fund
• Medical facility
• Bonus
• Housing
Other facilities include death relief fund festival bonus, overtime payment welfare
40
2.3: PRODUCTS OF COMPANY
PARAG deals in various Products in the market such as milk of different variety and
different Composition in the same they deal in Curd, Cheese, Ghee, Butter etc.
Liquid milk
Milk Cake
Paneer
White Butter
Table Butter
Parag Ghee
Parag peda
Parag Dahi
Parag Mattha
Parag kheer
Parag khoya
41
LUCKNOW PRODUCERS CO-OPERATIVE MILK UNION LIMITED
In the following table the details of the products are given with their Weight and Rate.
Rate List
42
7 PARAG LITE 500 ml 7.50 8.00
BUTTER
43
16 PARAG 250 gm 37.00 40.00
PERA
20 PARAG 10.00
SOFTEY
ICECREEM
44
26 PARAG 15 kg 4000.00
GHEE TIN
PACK
45
PRESENT STATUS PARAG AND ITS PRODUCTS
Today the working capital of this milk union is more than 4 lakhs liter per day as
compared to 320 liter per day at the beginning. It is expected than in the coming 4-5
years the plan will develop the capacity or producing 8 lakhs liters or more milk per
day.
In present time stall of company PARAG goes on peak and better in the market then
other brands of milk. Quality and purity of PARAG products is better. Demand of
Parag and its products are leader in the present market than other brands like Gyan &
Gokul.
The dairy industry of now rank second in the world and milk products contribute about
Rs. 8,987 million to the National income India in the current decade rank found in the
world in the matter of milk production will about 72.7 million tones (2005-2006) and 75
million tones (2008-2009). The milk production in five years plan is targeted to 90
million tones.
46
INDUSTRIAL MARKETING MIX
The term mix has been applied to the activity of combining marketing methods of
A satisfactory marketing is mix depended upon the establishment or the market’s need.
The establishment or ones objectives and preparation of a strategic marketing plan which
Product quality
Product pricing
Product development
Product range
Sales range
Sales aids
Sales promotion
Advertising
Market research
Stock level
Unit of sales
47
Distribution arrangements
Credit
Cash discount
Packaging
Sampling
PUBLIC RELATIONS
MARKET PENETRATION
Might consider whether its major brand can achieve deeper market penetration marketing
more sales to present customer without changing products in any way. So to increase the
sales, the company might cut prices, increase advertising, get its products into more
stores, or obtain better store displays and point of purchase merchandising from its
retailers. Basically the management should like to increase usage by current customers of
48
Milk Product Marketing
The project marketing division is handling the marketing of butter ghee and dairy
whitener. A part of this, there is creation indigenous products being marketed directly by:
5. The review the existing milk and product on the basis of consumer response and to
DEVELOPMENT CELL along the above cell betterment future of its products.
49
HOW THE INDUSTRY WORKS
• The given points show PARAG industry bring normal milk, how by testing them
and take other steps and at last packing of the milk take place.
• Then we pasteurize the milk with the help boiler house and Refrigeration house.
• In the lab we test that whether milk has been Pasteurize or if it not then sends back
for Pasteurization or not if it not then sends back for Pasteurization again.
• After testing pasteurization of the milk then test Bacteria’s are present in the milk
or not.
• If Bacteria are not present in the milk has been send for packing and from there
50
2.3: SWOT ANALYSIS OF INDIAN DAIRY
STRENGTH:
The major strength of the traditional dairy products sector is the mass appeal
enjoyed by the wide variety of products. The market for these products far exceeds that
for western dairy products like milk powder, table butter and cheese. Their operating
margins are also much higher than the western dairy products. The increasing demand for
these products presents a great opportunity for the organized dairies in the country to
WEAKNESS:
The major weakness of this sector is the practice of inadequate hygiene in the preparation
and handling of these products and their relatively short shelf life. The preparation and
marketing of these products is generally done by hallways, and that limits development in
the sector.
OPPORTUNITY:
The expanding business prospects provided by these products and their accompanying
value-addition, call for a through study of this sector. If would facilitate and increase in
the production and marketing of hygienically prepared and properly packed products to
meet the demand of a growing population as has been demonstrated at the NDBS’s
Sugam Dairy.
51
THREATS
Milk vendors, the un-organized sector: Today milk vendors are occupying the
harm that they are doing to producers and consumers should see a steady decline
in their importance.
INTRODUCTION STAGES:
1. Rapid Skimming :
2. Slow Skimming :
• Market is limited.
52
GROWTH STAGE
53
CHAPTER- III
3:PROJECT
54
3.1: INTRODUCTION OF PROJECT
Project is related to conduct a customer satisfaction survey to get knowledge about the
customer’s satisfaction level, their loyalty toward PARAG, market position of PARAG and
To keep things in mind that as the ever-changing competitive business environment. New
thought and idea should pour into it, research & development to innovate its existing
This study enables the user with answer to formulate an effective marketing mix strategy with
a broader prospective to tap areas where it did not feel the earlier, hence the decision of
whether to penetrate this section or not can be found out at the end of the data analysis.
It also gives ideas of the potential of our business in the future & the fluctuation in price from
innovation and advertisement that help to give competitive advantage against competitors.
55
OBJECTIVES OF THE PROJECT
The market research was done with primary objective of studying the role of PARAG in
providing PARAG products to the consumer easily and according to their taste. Major
threats).
56
Limitations of the study -
Though the detailed investigation is made in the present study, still there are following
limitations.
This study is restricted only to the INDIRA NAGAR. So, the results may not be
This study is based on the prevailing customer’s. But the customer’s perception may
As per the population of the study is huge; a sample size of 100 sample respondents is
Data collection of exact data for the research is not possible because there is a gap
Information provided by the customers may not be accurate. They may hide some of
57
CUSTOMER SATISFACTION
performance indicator within business and is part of the four perspectives of a Balanced
Scorecard.
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation
of the state of satisfaction will vary from person to person and product/service to
physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other options the
customer may have and other products against which the customer can compare the
58
Organization’s products. Because satisfaction is basically a psychological state, care
Research in this area has recently been developed. Work done by Berry, between 2005
and 2006 defined ten 'Quality Values' which influence satisfaction behavior, further
expanded by Berry in 2007 and known as the ten domains of satisfaction. These ten
These factors are emphasized for continuous improvement and organizational change
measurement and are most often utilized to develop the architecture for satisfaction
between 2007 and 2008 provides the basis for the measurement of customer satisfaction
with a service by using the gap between the customer's expectation of performance and
their perceived experience of performance. This provides the measurer with a satisfaction
The loyalty business model is a business model used in strategic management in which
company resources are employed so as to increase the loyalty of customers and other
typical example of this type of model is: quality of product or service leads to customer
A model by Kay Storbacka, Tore Strandvik, and Christian Gronroos (2001), the service
quality model, is more detailed than the basic loyalty business model but arrives at the
same conclusion. In it, customer satisfaction is first based on a recent experience of the
compared to the actual performance received. If the recent experience exceeds prior
high even with mediocre performance quality if the customer's expectations are low, or if
the performance provides value (that is, it is priced low to reflect the mediocre quality).
Likewise, a customer can be dissatisfied with the service encounter and still perceive the
overall quality to be good. This occurs when a quality service is priced very high and the
This model then looks at the strength of the business relationship; it proposes that this
perceptions of quality, customer commitment to the relationship, and bonds between the
experience may not significantly reduce the strength of the business relationship if the
customer's overall perception of quality remains high, if switching costs are high, if there
are few satisfactory alternatives, if they are committed to the relationship, and if there are
60
The existence of these bonds acts as an exit barrier. There are several types of bonds,
bonds (dependence), knowledge bonds, social bonds, cultural or ethnic bonds, ideological
bonds, psychological bonds, geographical bonds, time bonds, and planning bonds. This
model then examines the link between relationship strength and customer loyalty.
2) The customer no longer has a need for the company's products or services.
The final link in the model is the effect of customer loyalty on profitability. The
fundamental assumption of all the loyalty models is that keeping existing customers is
61
According to Buchanan and Gilles (2002), the increased profitability associated with
of revenue).
Long term customers tend to be less inclined to switch and also tend to be fewer
prices sensitive. This can result in stable unit sales volume and increases in dollar-
sales volume.
Long term customers may initiate free word of mouth promotions and referrals.
Long term customers are more likely to purchase ancillary products and high-margin
supplemental products.
Long term customers tend to be satisfied with their relationship with the company and
are less likely to switch to competitors, making market entry or competitors' market
Regular customers tend to be less expensive to service because they are familiar with
the processes involved, require less "education," and are consistent in their order
placement. Increased customer retention and loyalty makes the employees' jobs easier
and more satisfying. In turn, happy employees feed back into higher customer
62
LOYALTY MARKETING
incentives. The discipline of customer loyalty marketing has been around for many years,
but expansions from it merely being a model for conducting business to becoming a
vehicle for marketing and advertising have made it omnipresent in consumer marketing
Organizations since the mid- to late-1999s. Some of the newer loyalty marketing industry
insiders, such as Chris X. Moloney and Fred Reichheld, have claimed a strong link
between customer loyalty marketing and customer referral. In recent years, a new
marketing discipline called "customer advocacy marketing" has been combined with or
replaced "customer loyalty marketing." To the general public, many airline miles
programs, hotel frequent guest programs and credit card incentive programs are the most
CUSTOMER FOCUS
Many companies today have a customer focus (or customer orientation). This implies that
the company focuses its activities and products on consumer demands. Generally there
are three ways of doing this: the customer-driven approach, the sense of identifying
In the consumer-driven approach, consumer wants are the drivers of all strategic
marketing decisions. No strategy is pursued until it passes the test of consumer research.
63
Every aspect of a market offering, including the nature of the product itself, is driven by
the needs of potential consumers. The starting point is always the consumer. The
rationale for this approach is that there is no point spending R&D funds developing
products that people will not buy. History attests to many products that were commercial
Information, Value, and Access). This system is basically the four Ps renamed and
The SIVA Model provides a demand/customer centric version alternative to the well-
known 4Ps supply side model (product, price, place, promotion) of marketing
management.
Place ->Access
64
• Information: Does the customer know about the solution, and if so how, who from,
• Value: Does the customer know the value of the transaction, what it will cost, what
are the benefits, what might they have to sacrifice, what will be their reward?
• Access: Where can the customer find the solution? How easily/locally/remotely can
This model was proposed by Chekitan Dev and Don Schultz in the Marketing
The model focuses heavily on the customer and how they view the transaction.
PRODUCT FOCUS
In a product innovation approach, the company pursues product innovation, and then tries
to develop a market for the product. Product innovation drives the process and marketing
research is conducted primarily to ensure that a profitable market segment(s) exists for
the innovation. The rationale is that customers may not know what options will be
available to them in the future so we should not expect them to tell us what they will buy
in the future. However, marketers can aggressively over-pursue product innovation and
must ensure that they have a varied and multi-tiered approach to product innovation.
65
3.3:RESEARCH
METHODOLOGY
66
INTRODUCTION:-
of research, research design, sample size, sampling method, method of data collection
etc.
MEANING OF RESEARCH:-
Research in common pariance refers to a search for knowledge. One can also define
The Advanced Learner’s Dictionary of current English lays down the meaning of
research as “a careful investigation or inquiry especially through search for new facts in
RESEARCH METHODOLOGY
style & consumption patterns brand loyalty and forecast market changes. Research is also
used to study competition & analysis the competitor’s products positioning, MR is also
67
SIGNIFICATION OF RESEARCH
3. Research provides the basis for nearly all government polices in our economic
system.
4. Research has its special significance in solving various operational and planning
problems of business and industry. Operations research and market research, along
with motivational research are considered crucial and their results assist, in more
satisfaction of knowing a few things just for the sake of knowledge and also has
practical utility for the social scientist to know for the sake of being able to do
68
something better or in a more efficient manner.
Exploratory research studies are also term as formulating research studies. The main
purpose of such studies is that of formulating a problem for more precise investigation or
of developing the working hypothesis from an operational point of view the major
emphasis in such studies is on the discovery of idea and insights. As such there research
design appropriates for such studies must be flexible enough to provide opportunity for
perception towards PARAG PRODUCTS in Lucknow, and about their loyalty towards
the PARAG.
For this research project two types of data has been use
a. Primary data
b. Secondary data
69
PRIMARY DATA
Primary data are those, which are collected for the first time and are those original in
character. Primary data are in the shape of raw material to which statistical method are
applied for the purpose of analysis & interpretation primary are been collected in market
by following method:-
Questionnaire(100) respondents
I have been collecting primary data by the method of survey of persons. Because of
SECONDARY DATA
Secondary data are those which have already been collected by some other person and
which have been passed through the statistical machine at least once.
I collect the Secondary data with the help of company records and company website etc.
EXTERNAL DATA:
This type of Secondary data can be obtained from the outside sources e.g. magazine,
70
METHOD OF DATA COLLECTION:
SAMPLE SIZE: The sample size covered for the purpose of this study is 100.
specific area.
Those are mutually exclusive and include all items in the universe.
A simple random sample is than chosen independently from each group of Stratum.
The process of stratified random sampling differs from simple random sampling in
that, with the later, sample item are chosen from each stratum chance.
71
4:DATA
ANALYSIS
72
4.1: TABULATIONS OF DATA
FLAVORED MILK 52 52
SWEET CURD 32 32
MATTHA 50 50
MILK CAKE 14 14
ICE CREAM 06 06
PANEER 08 08
CONSUMERPREFERENCE
60 X axis
52% 50%
50
40 32% FLAVORED MILK
30 SWEET CURD
20 14%
8% MATTHA
6%
10
MILK CAKE
0
ICE CREAM
PANEER
Y axis
73
FIG.1- The preference of respondents towards each Parag Products.
Interpretation-
The above table shows that 52% consumers are consuming Flavoured milk, 50%
Consumers are consuming Mattha, 32% Sweet Curd, 14% consumers are consuming
Milk cake, 6% Ice cream and 8% Paneer.
MATTHA 20 38 42
PANEER 0 67 33
SWEET CURD 22 68 10
consumptionof products
80 X axis
67% 68%
70
60%
60
50 42%
38% Daily
40 34% 33%
Weekly
30 22%
20% Monthly
20
8% 10%
10
0%
0
FLAVORED MILK MATTHA PANEER SWEET CURD
Y axis
74
Interpretation-The above table shows that 60%, 20%, 8% Flavored milk,
20%, 38%, 42%Mettha, 0%, 67%, 33%Paneer, 22%, 68%, 10% Sweet curd consumer use
Daily, weekly, monthly respectively.
3. Do you think that parag products are worth the money paid by you?
WORTHOFPARAGPRODUCTSFOR
CONSUMER
90 X axis 84%
80
70
60
50
40 WORTH OF PARAG PRODUCT
FORCONSUMER
30
16%
20
10
0
YES NO
Y axis
Interpretation-
The above table shows the 84% consumers think that parag products are worth the money
Paid by them, 16% consumers think that parag products are not worth the money paid by
75
them.
BASISOFBUYING
70 X axis 64%
68%
60 54% 54%
50
PRICE
40
BRAND NAME
30
TASTE
20 16%
PURITY
10 QUALITY
0
PRICE BRAND TASTE PURITY QUALITY
NAME
Y axis
FIG. 4 The response of respondents towards buying preference due to Price, Brand name,
Taste, Purity and Quality.
Interpretation-
From the above table it is clear that the mostly 68% consumer buy Parag products due to
76
Its better quality, 64% due to taste 54% due to price & purity and 16% due to brand
name of it.
5. If other brands are available at the same quality, would you like to switch over to
other brand?
TABLE NO. 5 The response of respondents towards switching over to other brands if
available at the same quality.
OTHERBRANDSPREFRENCE
X axis 68%
70
60
50
40
32%
30 OTHER BRANDS PREFRENCE
20
10
0
YES NO
Y axis
FIG. 5 The response of respondents towards switching over to other brands if available at
the same quality.
Interpretation-
Above table shows that 32% consumers would switch over when other brands are
available in same quality 68% have no effect.
77
6. Do you come across problems regarding the non availability of Parag products?
Table No. 6- The response of respondents towards facing problem in availability of parag
product.
PROBLEMSREGARDINGNON AVAILABILITY
OFPARAG
X axis 88%
90
80
70
60
50
40 PROBLEMS REGARDING NON
AVAILABILITY OF PARAG
30
20 12%
10
0
YES NO
Y axis
Interpretation-
Above table shows that 88% consumers want more number of booths set up in their
location & 12% have no effect.
78
7. Are you satisfied with the price of Parag Products?
SATISFACTIONWITHPRICEOFPARAG
X axis 60%
60
50
40%
40
10
0
YES NO
Y axis
Interpretation-
Above table shows that mostly 60% consumers are satisfied with price of parag products
40% are dissatisfied.
79
8. Are you satisfied with the quality of Parag products?
SATISFACTIONWITHQUALITYOFPARAG
X axis
100 92%
90
80
70
60
50 SATISFACTION WITH QUALITY
40 OF PARAG
30
20
8%
10
0
YES NO
Y axis
Interpretation-
Above table shows that most of 92% consumers are satisfied with quality of Parag
Products and only 8% are dissatisfied.
80
Analysis & interpretations of Data
• 64% consumes are satisfied with the taste of Parag products & 36% consumer are
dissatisfied.
• 60% consumer are satisfied with the price of Parag products, 40% consumer are
dissatisfied.
• 92% consumers are satisfied with the quality of Parag products & 8% consumers
are dissatisfied.
• 88% consumer wants more number of Parag booths to be set in their locality &
12% have no effect.
• 32% consumers have positive response to switch over, if other brands are
available at the same quality & 68% consumer have no response.
• We contacted with 100 consumers, 54 consumers are using Parag Milk but 46
consumers use other brands.
• During the survey we found 63% Consumer are buying one liter milk, 31%
Consumers are buying 0.5 liter milk, and 6% Consumer are buying 0.25 Liter milk.
81
4.2:FINDINGS
FINDINGS
82
By the help of analysis & interpretation of the data we come to some findings, these findings
are as follows.
PARAG has good market position in the regional market. It holds 52% of market
Most of the customers are satisfied with the quality & availability of PARAG
products.
Increasing price of PARAG milk & other products are the big challenge for the
PARAG, because these products are available in the market at the comparatively
lower price.
Customers want to make the availability of the PARAG products nearer to their
home.
40% of customers are not satisfied with the price of the PARAG products. They
Most of the customers are aware about the new PARAG products from the retailer
shops.
That is retailers are the main source of making the customer aware about the
PARAG products.
83
4.3:LIMITATIONS
84
LIMITATIONS
The reliability and scope of survey greatly relies on the cooperation of the
respondents.
recovered.
85
SUGGETIONS
&
RECOMMANDATIONS
86
SUGGESTIONS & RECOMMENDATIONS
1. More milk ATM should be established to enhance the availability of Parag milk.
2. Make the customers aware about the Parag products through different mode of
advertisement.
3. There should be no leakage in the liquid milk & if the exists than these packets
should be replaced.
4. Packing of the liquid milk should be reusable that helps to reduce the price of the
products.
5. On line information about the Parag products & trading should be facilitate by the
company.
6. There should be regular visit for getting the customer feedback about the Parag
7. For fulfilling the increasing demand of milk the company should try to increase the
production.
87
4.4: BIBLIOGRAPHY
1. BOOKS:-
2. OTHER SOURCES :-
India Today
Business World
www.nddb.com
www.paragmilk.com
88
4.5:ANNEXURE
89
QUESTIONNAIRE-
be crucial in making final study.Please take a couple of minute in compeleting this brief
questionnaire.This is confidencial & jest for purpose of study.So please provide true
inputes.
B. Address ______________________________________________________
E. Occupation:
Student Service
J ob Retired Business
Unemployed
Flavored milk
Sweet curd
Mattha
90
Ice cream
Paneer
Mattha (daily/weekly/monthly)
Paneer (daily/weekly/monthly)
3. Do you think that parag products are worth the money paid by you?
• yes
• No.
4. Do you come across problems regarding the non availability of Parag products?
• yes
• No
• Price
• Brand Name
• Taste
91
• Purity
• Quality
6. If other brands are available at the same quality, would you like to switch over to
other brand?
• yes
• No
• yes
• No
• Yes
• NO
92
ACTIVITY-1
During the project a survey is being conducted to know the market share of Parag in
Indira Nagar. This survey is been done among 100 people. This is shown with the help
93
Analysis:
1. It is clear from the chart that 54% people give preference to parag.
94
2. Which time of the day do you purchase the milk?
PURCHASINGTIME
30%
MORNING
46%
EVENING
BOTH
24%
95
3. How much quantity of milk you purchase per day?
QUANTITYDEMANDED
6%
1 LITER
31%
0.5 LITER
0.20 LITER
63%
96
97