A

RESEARCH REPORT

ON
“SALES & DISTRIBUTION
OF
PARAG MILK”

Report submitted In the partial fulfillment of the requirement of

MASTER IN BUSINESS ADMINISTRATION
[UTTAR PREDESH TECHNICAL UNIVERSITY, LUCKNOW]
SESSION (2007- 2009)

SUBMITTED TO SUBMIITED BY
MBA DEPTT. RAJESH GOYAL
IEC College of Engg. & Technology MBA-4th Sem
R.N.0709070057

IEC COLLEGE OF ENGG. & TECHNOLOGY

GREATER NOIDA
 PREFACE

The success of any business entity solely depends on how effectively does it utilizes
its optimum resources and how soon does it make arrangements for the removal of
the customer’s grievances. Moreover, the company should always be ready to make
necessary changes according to the requirement in order to attract more customers
so as to maintain a substantial growth in the market. The topic given to me was:

“SALES & DISTRIBUTION OF PARAG MILK”

I have tried to put my best efforts to complete this task on the basis of skill that I
have achieved during my studies in the institute.

I have tried to put my maximum effort to get the accurate statistical data. If there is
any error or any mistake in collecting the data, please ignore it.

2
 ACKNOWLEDGEMENT

One of the most pleasant aspects of writing an acknowledgement is the opportunity to thank
all those who have contributed to it. Unfortunately, the list of expression of gratitude- no
matter how extensive – is always incomplete and inadequate. This acknowledgement is no
exception.

First of all, I wish to express my sincere gratitude to Ms. Deepshikha Sharma (Faculty)
IEC College of Engg. & Technology, Greater Noida, for giving me opportunity to do
research under her profound guidance. Because of her inspiring guidance, motivation,
positive criticism, continuous encouragement and untiring supervision this work could be
brought to its present shape.

I would like to thank all of them who in one way or the other have helped me.

Rajesh Goyal

3
 CONTENTS

CHAPTER-1

1.1 Executive summary

1.2 Introduction
1.3 Introduction of Dairy Co-Operation
1.3 Hypothesis objective
1.4 company profile
1.5 Quality of Milk
1.5 Introduction of Technology and Process
1.5 Milk Testing
1.5 Trade profile
1.6 Introduction to problem
1.7 Scope of project
1.8 SWOT analysis
1.9 Limitation

CHAPTER- 2

2.1 Research methodology

2.2 Source of Information
2.3 Type of research
2.4 Data collection instrument
2.5 Field work procedure

CHAPTER- 3

3.1 Finding analysis & Recommendation

CHAPTER- 4

4.1 Summary/ Conclusion

CHAPTER- 5

5.1 Bibliography
5.2 Appendix

4
 DECLARATION

I, Rajesh Goyal, hereby declare that the Research report entitled “Sales and Distribution of
Parag Milk” being submitted to the U.P.T.U. for the fulfillment of the requirement for the
degree of Master of Business Administration is my own endeavor and it has not been
submitted any university or Institute earlier for any degree.

Date:

Place:

(Rajesh Goyal)

5
 EXECUTIVE SUMMARY

Marketing is indeed an ancient art. It has been practiced in one form or other since the days

of Adam, and Eve. It emerges as a management discipline. However, is of relatively recent

origin. And within relatively this short Period, it has gained a great deal of importance. In

fact, today most Management thinkers and practitioners the world over, regard marketing as

the most important of all management function in any business.

Indian dairy is said to be emerging as sunrise industry. Milk industry became India’s number

one firm in terms of value of output since dairying in India is closely linked to agriculture,

Milk production is mostly based on the utilization of farm by product and crop- residues.

Because of this, the cost of milk production is much lower than any other industry.

Modern scientific processing technology and managerial innovation are opening up vast

opportunities in processing and marketing of various kinds of value added milk and milk

products like flavored milk, ice cream, and other delicacies. That’s why most of the

consumers are attracted toward milk product materials. Most of the consumers are attracting

packed milk because in this method there is no any adulteration comparison to loose milk.

Most of the consumers prefer full cream milk as very essential because in this milk, fat

percentage is very high. After that 2nd choice of consumers is DTM and the aged person and

patient type of consumers preferred skimmed milk .In this type of milk, fat is not present.

Most of the consumers purchase decision is based on quality of milk. “Time availability”

factor generally influence to the people for better services. In consumers opinion Mother

Dairy covers the maximum market share then comes PARAG dairy. Most of the dealers

think that if the quality of the milk is good then the sale will increase. Now Consumers are

attracted towards “flavored milk”.

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The products marketing division is handling the marketing of Butter, Ghee, Skimmed milk,

Milk powder, Dairy whitener. Table butter is available in 100 gm &500 gm pack in the

market. Pure ghee is present in ½ kg and 1 kg polypack in the market. Other than in “U.P”

and “VARANASI” “Parag” product are also distributed in other state.

After “MOTHER DAIRY” “PARAG DAIRY” acquires 2nd position in terms of Quality,

Availability.

“PARAG DAIRY” plant of VARANASI is the first vertical dairy of Asia. Thus it is also the

most modern and automated dairy in North INDIA, where quality of milk processed and

packed is second to none. Parag is widely accepted brand name of dairy product in India.

According to me Parag Dairy has got a good position in the market.

INTRODUCTION

7
DAIRY SCENARIO IN INDIA

Indian dairy is said to be emerging as a sunrise industry. Milk production is estimated to

exceed 74 million tones in 1997 and with the present growth rate of 5 percent per year,

production is likely to touch in 1998, 86 million tones by the turn of the country, there by

taking India to the top position in milk Production surpassing the US.

In 1994-95, milk became India’s number one farm commodity in terms of value of output.

Out of every 100 liters of milk produced, 44 were retained by the rural folk, and 56 liters was

the marketable surplus for the urban areas. Out of this 56 liters, only 10 was handled by the

organized sector and the reaming 46 by the traditional sector. Which means there is still

scope for progress not just in terms quality and production but in distribution patterns.

About 70 million farmers are engaged in dairy activities. There are about 57 million cows and

39 million buffaloes and the strength of dairy economy is in its live stock of 270 millions,

the record in the world.

In live stock holding, India occupies the first position, accounting for 51 percent of the

world population 1,420 millions.

India’s dairy industry generates an annual business of Rs. 53,000 cores and is expected to

touch Rs. 88,000 cores by the turn off century. It’s highly skilled manpower pool is other

advantage.

8
The country has built up a strong base for education, research, extension and training in dairy

and veterinary science and manpower resources available here are much cheaper than other

countries.

Since dairying in India is closely linked to agriculture, milk production is mostly based on

the utilization of farm by products and crop residues.

Because of the cost of the milk production is much lower than the many developed countries,

modern scientific processing technology and managerial innovation are opening up vast

opportunities in processing and marketing of various kinds of value added milk product like

flavored milk, yogurt, ice-cream and other delicacies.

The emerging consumption patterns present new challenge for the dairy industry. The

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

milk possibility of its contamination necessitates rapid movement of the product. The highly

decentralized natures of the production assets and lie then adequate development of physical

infrastructure make the desired speed of movement of milk difficult.

Indian dairy is multi layered shaped like a pyramid with the base Map of market for low cost

milk. The narrow tup at the top is small but there exists a great market for Western type

milk products.

Indian love to drink milk, hence no efforts are needed to make it acceptable its availability

is not a limitation either, because of simple production.

9
It leaves the vital marketing factor affordability. How to make milk affordable to the large

majority with limited purchasing power. This is essence of challenge.

A. Food service institutional market.

It is growing at the double rate of consumer market.

B. Defense market:

It is growing market for quality of product at reasonable prices.

C. Ingredient market:

A boom is forest in the market of dairy product based as raw material in

Pharmaceutical and allied industries India with their sizeable dairy industry groining rapidly

and on the path of modernization would have decades to come.

10
 INTRODUCTION TO DAIRY CO-OPERATION

During the early 1920s military dairy farms were established for adequate supply of milk to

the army station.

Establishment of the imperial Indian council of agricultural research in 1929 and transfer of

the office if the imperial dairy expert and the institute at Bangalore to the central government

of India was on the right path of giving due importance to animal husbandry and dairying.

Subsequently N.C. Wright, Director, Dairy Research Institute Scotland, was invited to review

the progress of dairying in India.

His four-year stay (1936-1940) gave a remarkable impetus to dairy development. Even to

this day we realize the importance of D.R. Wright recommendation, which he made in his

report towards dairy development Imperial Dairy Research Institute (IDRI) in 1941.

Later on it was renamed as “Indian Dairy Research Institute” and regional stations subs

regional station equity as National Dairy Research Institute (NDRI) in 1955 with Regional

station.

Academic Training Programme and research in dairy technology and dairy husbandry were

accelerated under the director of dairy research, a top senior official position first held by

KOTHWALAOR THE DAIRY DEVELOPMENT advisor to the GOVERNMENT OF

INDIA in 1944.

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The polson Dairy at ANAND bridged the gap between the market at Bombay and milk

products in Karia district by supplying pasteurized and chilled milk to Bombay milk scheme

and military cantonment in Bombay in 1943.

some of the points emphasized by him were:-

A. Lack of an organized milk industry in India and ready and remunerative market for milk

produced in rural areas.

B. In the absence of ready and assured market the chance of proper impact of development

input were very remote.

C. India has to develop its own technology and technologist to solve the problem of Dairy

industry.

D. Being a country of village, inhabited by marginal farmers and landless laborers.

Dairy development in India had to involve these wide spread rural pockets to promote dairy

development on co-operative lines. That was the only way towards tangible progress.

The farmers co-operative complex were established in Karia district at Anand in 1946 and

after independence the Arey milk colony and Amul set together a fast pace of dairy

development with emphasis on developing technique of processing and marketing, suitable to

Indian condition . Between 1948 and 1957 the Karia union expanded its working from 5

village societies to 9000 village societies. It was therefore inevitable that they attracted

growing attention of policy makers.

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 Toward the end of 1960 the lessons of the Gujarat dairy co-operative movement thus began

to gete incorporated in the official’s policy towards dairy development.

The government of India entrusted the NATIONAL DAIRYDEVELOPMENT BOARD

(NDDB) with the task of implementing operation flood which involved creation of Anand

pattern or Amul type unions in it districts of the country.

Development under flood programme (OFP)

Launching of OFP in 1970 was the first step taken towards milk production at the rural level

through the pattern of co-operative milk was efficiently procured and canalized to the

consumer in the far flung cities.

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 OPERATION FLOOD PHASE ONE (1970-81)

Phase -1, involving an investment of 95.4 crores, was formally launched on July 1, 1970.

This was the time the largest dairy development programmed was launched any where in the

world. The project was originally formulated for five years, but it suffered delays and was

therefore create on the foundation built by phase-1, a viable dairy industry to serve the nation

need for milk and milk product in 1980s. To achieve this, the programmed of work was set

out in two parts, July, 1978 to July 1979 was used to carry out the preprogram action

required prior to launching of phase –II

The originally of phase-11 project proposal with an outlays of rest 485.5 cores was finally

approved by the planning commission and the Government of India with revised targets and

outlay of Rs. 273 cores which was to be carried over to phase-III.

The phase-II was implemented during the 6th five year plan.

(1) Expansion of existing dairies in metropolitan cities.

(2) New dairies in 4 metropolitan cities.

(3) Milk collection / chilling centers.

(4) Storage and long distance transport of milk.

(5) Feeder / balancing dairy plants

(6) Co-operative organization.

(7) Project of skim milk powder and butter oil donated.

14
 OPERATION FLOOD PHASE -11 (1981-85)

The success of phase-I clearly demonstrated the reliability of Anand and pattern in milk

sheds. Thus, phase-11 launch on October 11, 1979 was designed.

OPERATION FLOOD PHASE –III

Operation flood was a continuous programme. The phase-III during the 7th five year plan

period was for a period from April 1986 to March 1990, but the program was intended

further. The key physical target of phase-111 is as follows:-

(1)No of Anand co-operative societies.

(2) No of Anand pattern DCS under 25,000.

(3) Milk animals under co-operative ambit, lakh lpd 152.9

(4) Milk procurement peak, lakh lpd 183.3

(5) Build up of dairy capacity lakh lpd 200.0

(6)DCS membership, lakh 100.2

(7) Urban centers to be covered for marketing 200.

Thus Indian dairy industry is progressing well. The tremendous strides taken towards

modernization of dairy provided effective boost to indigenous, manufacture of dairy

equipment, veterinary medicines and vaccines and long distance transport vehicles for milk.

15
SOME UNIQUE FEATURES OF THE ORGANIZATION

Pradeshik co-operative Dairy federation LTD. is more than four decades old in the Indian

Dairy Industry. A quasi government organization in the co-operative sectors, it is the leading

organization in the dairy sector in the Northern India. PCDF-a cohesive body –successfully

does away with the exploitative force of yester years, the eventual middlemen, foregoing a

direct link between the producer and the ultimate consumer. To achieve this noble aim, a

three tier cooperative structure has been eve loved comprising of primary societies at the

village level, Milk union in the district and finally the main focal Apex Federation – the

PCDF at the State level.

World Bank aided prestigious operation programme in the state has been implemented by

PCDF in three phases beginning 1997 to the year 1995.

Nearly all the potential milk belts of the state were gradually covered in the three phases of

Operation Flood Programmed.

PCDF’s operation combine the basic guiding principle of Anand pattern Milk co-operative

with the business skill of today’s industrialized society.

Giving rise to an organization, which injects corporate skills and dynamic professionalism

into what, is traditionally a fundamental institution. The Rural milk co-operative draw their

inherent strength from the farmers’ committed participation. More than 5.5 lakhs rural milk

producer families of 10865-village level dairy co-operative reaffirm their faith by selling

surplus milk to PCDF.

OTHER PROGRAMMES

The federation’s unfailing reputation has won it the task of implementing various

development and promotional programmers sponsored by state/central government.

16
 Due to reputation, efficiency and wide network with quality manpower, PCDF is currently

implementing following developmental and promotional programmers supported by

central /state govt.

 integrated mini Dairy project (MIDP)

 women Dairy project (WDP)

Capturing a dominant shares of the urban milk market, hitherto served by multitude of small

milk vendors, Creating a procurement network to link numerous co-operative producer

societies in different milk shed areas to the organized urban dairy industry, Upgrading the

milk production capacity of Indian bovine stock through a programme of cross-breeding,

veterinary services and auxiliary activities.

GENERAL IMPACT (O.F.PROGRAMME)

Real ground work in dairying has been done by the co-operatives.

Due awareness has been created in the minds of producer and urban of the state.

Co-operative have succeeded in the social and economical upliftment of women and

downtrodden in the rural society. Rural migration to the cities curtailed because of

continuous and sustainable employment generation at village level.

 Rural Family Welfare Project (RFWP)

 Uttar Pradesh Diversified Agriculture Support project (UPDASP)

The programmed achieved hitherto under this programme has own many laurels for PCDFC

adding further to its reputation.

17
ENCOURAGING RURAL PEOPLE IN DIRYING- A PRIORITY

Towards upliftment of rural poor, PCDFC has emerged as the leading institution in the state.

Small and marginal farmers and landless laborers have been able to participate in draying on

an appreciable scale only since the launching of various developmental programmers.

Darying is a labour intensive activity governed largely by availability of female labour;

hence rural women are also actively participating in dairy.

Through its consistent efforts PCDF has ensured that the rural women remains indispensable

parts of darying in the state.

MANAGEMENT ---The Force With in (Our forte)

The organization boasts of around more than three thousand employees that covers a whole

gamut of highly qualified and motivate professionals MBA’s, C.A.’s Engineers, Dairy

Technologist, Chemist, and vetinarians.

The staff has been trained for special function being performed by the Federation.

INFRASTRUCTURE (PLANT& MACHINERY)

The organization is equipped with sophisticated Plat & Machinery Ghee, Butter Milk

Powder, and other Dairy product on a big scale. The manufacturing capacity covers

approximately 37mt. Ghee, 30mt.Butter, and 55mt. Of Milk powder on per basis.

PCDF has also the distinction of having the post sophisticated and computerized first

vertical dairy in Varanasi. This is a state of Art project within its various sections located in

the basement and three floors of the building.

18
The total capacity available with the affiliated milk unions including the newly acquired

Parag Dairy, Varanasi 1530 TLPD. Besides the dairy plants various new projects have been

commissioned At Lucknow, Allah bad, Aligarh, and Kanpur as well.

Equipped central Quality control Laboratory based at Lucknow which Checks orgenolepetic

chemical and microbiological quality of the products.

MARKETING

The federation is marketing milk and milk products under a common brand name PARAG.

The total product range under the Parag Brand includes: - GHEE, Butter, SMP WMP Dairy

whitener, Flavored milk, Paneer, and Khoa.

The clientele include several prestigious institutions- U.P. and Varanasi besides the Indian

and the Fareast.

The turnover of the federation inclusive of the RMO’s and Cattle feed plants union is Rs

545.08 cores.

The global market for Indian Milk product is likely to brighten further in view of the GATT

agreement and PCDF is poised to emerge as an active player in foreseeable future.

EXISTING MARKET STRENGTHS

The field stiff is contacting more than 25000 retails outlets every morning and evening.

PCDF is serving more than 2 million consumers ever day by providing them by top quality

fresh milk. The consumers have faith in PARAG products and PCDF believe that a satisfied

customer is their best advertisement.

19
 PCDF- SOME FACTS

PRADESHIK CO-OPERATIVE DAIRY FEDERATION LIMITED (PCDF)

Parent organization of PARAG Dairy, Varanasi .PCDF monitors and controls

The operation of around 13 dairy plants in U.P. PCDF has its head quarters in Lucknow

(U.P). PCDF is monitoring around 30 dairy co-operative union in U.P. PCDF has a capacity

of 1510 thousand liters of milk per day.

NUMBER OF CO-OPERATIVE:30

NUMBER OF DAIRY PLANTS: 13

CAPACITY: 1510 thousand liters

Pure Ghee Instant milk powder Paneer

Pasteurized Butter Instant milk mix Skim milk powder

White Butter Milk Cake

20
 OBJECTIVE

In Varanasi and NCR generally more than 70% of the dealers preferred MOTHER dairy Milk

because of easy availability, and better service and brand image.

The rest of the dealers preferred PARAG milk.

 To find out the satisfaction of dealers with reference to delivery and collection time of

PARAG milk.

 To find out the types of milk mostly preferred by the retail outlets.

 To find out the user’s perception with reference to quality of milk supplied by Parag

dairy.

 To find out the sources of information regarding the availability of Parag milk.

 To find out the factors responsible for the growth in sales of branded milk in NCR

region.

21
 COMPANY PROFILE

Parag Dairy

Establishment:

“Parag Dairy “Varanasi” is a project under the operation flood 111 scheme of the

Government of India. It has been executed by National dairy Development board (NDDB)

with a capital investment of Rs 50 cores, for Pradeshik co-operative dairy Federation

Limited, Lucknow.

Some Unique features of the dairy:-

Pradeshik co-operative Dairy Federation Ltd. is more than four decades old in the Indian

Dairy Industry. Aquasi government organization in the co-operative sector, it is the leading

organization in the dairy sector in the Northern India. PCDF- a cohesive body – successfully

does away with the exploitative force of yester years, the eventual middlemen, fore going a

direct link noble aim, a three tier co-operative structure has been evolved comprising of

societies at the village level, milk union in the districts & finally the main focal

Apex Federation—the PCDF at the state level. World Bank aided operation program in the

state has been implemented by PCDF in three phases beginning 1997 to the year 1995.

Nearly all the potential milk belts of the state were gradually covered in the three phases of

operation Flood programme.

22
 BUSINESS AND MARKETING

STRATEGY OF THE COMPANY

Last year, we marketed products worth US $ 20 million. Parag is a house hold name for the

quality and price- anchorage. Our clientele include several prestigious organization of

Varanasi besides the Indian Army and Indian Air Lines. Our sales network is spread

throughout Indian.

The global market for Indian milk products is likely to brighten further in view of the latest

GATT agreement. At present we are successfully exporting our product to neighboring

countries.

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 PRODUCT OF THE COMPANY

Parag proudly present itself as a premium brand in the Indian Dairy industry. A list of

nutritious and premium quality product of parag include:-

• Milk (Full cream and tonned)

Skimmed milk powder in bulk and consumer pack

Dairy whitener

Pure ghee

Table butter

White butter

Demineralised whey powder

Casein edible and industrial grade

Dahee

The taste, flavour and excellent quality of our SMP-ISI and pure ghee have made

them as the brand leader in the market.

In tune with the rapidly changing technology, production, units are well armed with the

latest equipment. These facilities enable to cater to the needs of clients of Parag by

selling over 2,50,000 liters of milk per day in Varanasi.

Wide network of Parag backed by a team of dedicated and skilled professionals is ready

on its tows to provide you fresh and nutrious dairy products. They always welcome all

clients’ queries and leave no stone unturned for client’s utmost satisfaction.

24
 BACKGROUND

Parag is in the business of milk for more than 50 years. Parag milk is entirely collected

from village level collection centers that are developed by Parag. The quality of Parag

milk, regularity of supply and value of commitment has made Parag as the hallmark in

our sphere of operation. Today Parag is the second largest distributors of milk in

Varanasi & U.P.

The taste and flavor , low sodium level , low ash , content and low plate count of

Parag dairy products has fetched as accolades of clients . Products of Parag have found

wide acceptance with countless prestigious institutions. It includes Nestle India Limited,

Smithkline Beechman, Hindustan Lever Limited, Mother dairy & thers.

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 CONSUMER BEHAVIOUR

Consumer behavior consists of human behavior that goes in marketing purpose decision. In

case of basis necessary things of life (food, cloth and house) a person not takes any rise and

wants to purchase best brand available in the market.

A person do not experiment with food products, he only purchase known brand or pre-used

brand. He switches over only in the condition of suggestion of friends and relatives.

A general behavior of people is to select the best option available in the market. But option

means that brand which he knows and that brand is best quality at fewer prices. But in the

case of food product a person do not main emphasize on price of thing, his main emphasis is

on quality. So in this case people want only best milk brand which they knew.

26
 QUALITY ASSURANCE

FROM PRODUCERS TO CONSUMER:

AN OVERVIEW

In the new millennium, the world is emerging as a new place with increasing challenges for

co-operative dairy industry to produce superior quality milk & milk products at a competitive

price. In this changed environment the testing of milk &milk products at a different stages of

handling, has become a necessity to ensure good quality & safe food for the consumers.

DEFINING QUALITY

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

safe food articles of internationally accepted standard

• Customer satisfaction is at the focus of the latest international standards for quality

• Quality as defined by the international organization for standardization is "the totality

of features and characteristics of a product and service that bears on its ability to satisfy

stated or implied needs”.

27
 QUALITY OF MILK

1. Nutritional or compositional quality

Fat &SNF, protein Lactose, Minerals & vitamin Etc

2. Food Safety Quality

Contamination due to feed, medicines, fertilizers, environment etc. In the milk at upper

level.

Microbial quality, which is a function of general health of the cattle and milk handling

practices subsequent to milking

- The General hygiene of the farmers.

3. Sensory Quality

Off - flavour, smell/ flavour which consumer like/ dislikes.

28
 FACTORS INFLUCING QUALITY

The quality of an food materials including milk &milk products is influenced by the manner

in which the raw material, producer, transporter, processing, post production handling,

storage consumer and regulatory environment interact each other.

Good processing and handling can only help to prevent or inhibit further deterioration in

quality but can not off -set the harmful effects of the deterioration in terms of toxins and

acids which have already been produced due to increased Bacterial Activity in the raw milk.

CONSTRAINTS IDENTIFIED IN ENSURING QUALITY

• Portable water and drainage, approach road and electricity in DCS villages

• Awareness among the farmers resulting in poor hygiene, sanitation & environment

condition

• Inadequate microbial quality testing facilities in dairies

• High ambient temperature, particularly in summer resulting in faster growth of

microorganism in the milk

• Longer time of storage & transportation

• Cold chain for raw and pasteurized milk.

• Maintenance of equipments at dairy /cc like can washer,

• can scrubber, flow diversion valve etc.

29
 TYPICAL OBSERVATIONS

• Mixing of "morning & evening milk"

• Milking the animals in dirty surrounding with cow-dung & animal urine

• "Storing the milk" in the house before supplying it to the society

• Use of "Aluminum, plastic, GI Utensils" for making the animals and carrying the milk

to DCS

• Addition of neutralizers, formalin and hydrogen peroxide in raw milk

• Use of plastic jerry cans at DCS level for transportation of raw milk

• Fat testing by Gerber method is carried out in most of the DCS

• Lack of Farmers participation.

STRATEGY ADOPTED

• Mass awareness campaign

- CMP awareness through village level meetings, booketlets, calendars & posters

- Organizing exhibitions/stalls at union/DCS level

- To provide technical support for hot water system, as vessels etc

- New technological supports

- Sanitization of cans at DCS level

• Cooling of Milk at DCS level

- Introduction of BMC

- Reducing transportation time through rationalization of routes

30
• Incentives to DCS for supplying good bacteriological quality milk.

INTRODUCING NEW TECHNOLOGIES

• Automatic Milk Collection Stations (AMCS)

- It helped in bringing transparency at DCS level

- It has simplified the operational and day accounting activities

• Bactaslyde

-Quick testing and easy to use technology for total bacterial load and coliform load

- It helps in creating awareness about bacteria among farmers, DCS

• Adulteration Detection Kit

- There are two adulteration kits, small and large

-Small adulteration kit is used for 5 adulterants

- Large adulteration kit is used for 10 adulterants

31
 PROCUREMENT PROCESS

In UP milk production is scattered with large-scale producers. A quick survey done in the

recent past reveals the fact that the average land holding is very small. The number of family

members is high as compared to the buffaloes that a family owns. The number of buffaloes is

less with 20%-50% dry or pregnant, thus the producer has to feed such animals that are not in

lactation.

The average milk yield per lactation of buffaloes is 300 days ranges between 900 kgs to

about 1500 kgs. Producers retain the 25% of the produced milk and rest of the 75% is

marketing surplus. Thus these quantity of surplus milk available with a producer ranges from

2 kgs-10 kgs per day. An adequate system of organizing milk procurement, quality control,

quick testing and chilling & transportation is required in most of the village.

Keeping this in view VRS Foods already organized about 500 village centers. Every center is

located in puce room owned by the company or hired locally and provided with a small

laboratory for conducting quick platform tests including fat%, SNF%, acidity test, COR, BR

and CNR on which payment is made. Company has also provided running water for the

cleaning of utensils, equipment and storage of milk.

During the flush season at each village 300 kg to 700 kg of milk is collected. As per the time

schedule, small size vans collect the milk and transport it quickly to the nearest chilling

center/dairy plant. In these plants milk is cooled to a temperature of less than 9 degree

centigrade to preserve its quality.

At certain centers facilities for the pre-cooling of milk is also available. It also avoids any

rise in acidity while storage and transportation.

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Vedram & Sons VRS Foods
Milk ||Ghee|| Ghee || Parag

ParagMilkSpray || Table Butter ||

InstantDairyMix ||Casein || Parag White

Butter

Demineralised Whey Powder

33
 MILK TESTING

1. ORGANOLEPTIC EVALUATION

Check colour , taste and flavour of milk.

2. COB TEST:-

Take 2ml of milk in a dry test tube. Boil milk on flame of spirit lamp .Formation of ppts. in

the test tube indicate COB test positive.

3. ALCOHOL TEST :-

Take 5 ml in a test tube . Add 5 ml (60% by volume) alcohol with constant shake. Formation

of ppts. indicates alcohol test positive

4. TITRABLE ACIDITY TEST:-

Take 10 ml milk in 100 ml conical flask add 10 ml distilled water and 1 ml phenolphthalein

solutions titrate with N/10 NAOH till fant pinkish colour appears.

%TA = 0.09 X ml. of NAOH used.

5. NEUTRALIZER TEST:-

34
Take 2 ml milk rosalic acid (0.05% in 60 % alcohol), add 2 ml of milk .Rose red colour

indicate neutralizer test positive.

6. UREA TEST :-

Take 2 ml milk in test tube , add 2 ml DMAB solution and mix the contents. Appearance of

yellow colours indicates the urea test positive.

7. SUGAR TEST :-

Take 3 ml milk in a test tube, add 5 ml dilute HCL (1.2) containing 0.1% resorcinol. Mix

well and keep test tube in boiling water for 5 minutes. Brick red colour formation indicates

sugar test positive.

8. STARCH TEST :-

Take 3 ml milk in a test tube , boil and cool under tap water and add 2 drops of 1 % Iodine

solution. Appearance of blue colour indicates starch test positive.

9.HYPOCHLORITE TEST :-

Take 5 ml milk in test tube, add 1.5 ml of 7% potassium Iodide. Appearance of yelloish

brown colour indicates hypochlorite test positive. If solution is clear add 4 ml dilute HCL

(1.2) and heat the test tube at 85 degree centigrade for 1 minute. Cool and add 0.5 ml starch

solution. Appearance of blue or red colour indicates presence of bleaching powder.

10. FORMALIN TEST :-

35
Take5 ml milk in a test, add 0.5 ml of 1 % ferric chloride solution. mix well and conc.

sulphuric acid slowly along the side of tube. Formation of violet ring at juncture of two liquid

confirms formalin test positive.

11. HYDROGEN PEROXIDE TEST :-

Take 5 ml milk in a test tube and add 2 drop of para phenyl diamine hydrochloride (1%).

Formationof blue colour indicates hydrogen peroxide test positive.

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

Centrifuse the milk, take out cream plug & make ghee. Add a drop of clear fat on

Butyrorafractometer prism maintained at 40 degree centigrade . Reading should be in range

of 40- 43.If B.R reading taken at temperature other than 40 degree centigrade , apply the

following formula:

R = R1 +0.55 (T1-40)

R= B.R. reading at 40 degree centigrade

R1= Observed reading at T1

T1= Temperature degree centigrade at which B.R reading taken.

13. MINERAL OIL TEST :-

Take 22 ml alcoholic KOH solution (0.5N) in a flask, add 1 ml of clear FAT sample.

Saponify the FAT sample and add 25 ml boiling water along with the sides of flask. Keep on

shaking the flask . Turbidity indicates the presence of mineral oil.

14. MBR TEST :-

Take 10 ml milk in a sterilized tube, add 1 ml MBR dye solution plug with a sterilized cork

36
and invert the tube to mix contents and incubate in a water bath at 37 degree centigrade.

Check the tube for decolourisation first after 10 minutes, next after 30 minutes and

subsequently after every hour. MBRT is counted deleting initial 30 minutes of incubation.

15.PHOSPHATASE TEST:-

Take 1 ml milk in a sterilized test tube, add 5 ml phosphatase dye . Incubate at 37 degree

centigrade in a water bath. Observe the colour after 10 minutes, 30 minutes and finally after 2

hours. Yellow colour indicates the test positive perform control test also for comparision by

boiling of milk sample.

16. SALT TEST :-

Take 1 ml milk in a test tube , add 2 drop of 10 5 potassium chromate solution . The whole

solution turns canary yellow in colour. Now add 5 ml N/100 Silver nitrate and mix well .The

persistance of canary yellow colour as such show the positive salt test.

37
 TRADE PROFILE

The Federation is marketing milk and milk products under a common brand name PARAG.

The total product range under the PARAG brand includes Ghee, Butter, Mattha, Flavored

Milk, and Curd, besides all type of liquid milk.

The sales network is spread throughout Northern India, and the Far East. Besides these the

Federation is marketing the following industrial units.

 Cattle feed pacing material

38
 Milk transport cans.

 Plastic crates units

 Milk testing equipments

 Cheese plant

 Ice-cream plant

INTRODUCTION TO THE PROBLEM

Retailers are the one of the most important member of the distribution channel. They are the

people who provides product to the final consumers. As they have the direct touch with the

consumers, so they can play a vital role for influencing the buyers decisions. The company

should try to provide services to the retailers in such a way that they can satisfy with them.

The basic objective of my study is to identify dealer’s need i.e. What types of milk is

generally they buy, Why are they buying different brands of milk, Important factors for

39
purchase decision of dealers, To find out whether the milk is supplied on time, Are they

satisfied with the delivery process of PARAG milk, How is the behaviors of the salesman,

Are there any shortcomings being faced by the drivers and the salesman in the delivery

process, Is there any defect in packaging etc.

SCOPE

The scope of study is to understand the problem faced by the company while increasing the

retail outlets. With the help of this project Varanasi Cooperative Milk Marketing Federation

Limited can increase their outlets by analyzing the feedback given by the interviewer

(including existing and non existing outlets). GCMMF can also analyze the pricing strategy

followed by the rivals. By this study company will get the information about current

competitive position of the parag milk in the market.

40
 MANAGEMENT HIERARCHY

PCDF has 10 division every division has managers who are responsible of every division is

responsible to Managing Director.

The division heads of each division shall be responsible for the performance of their

respective division not only at the head office but also in the units- union in the field. These

officers are responsible for achieving fixed target and implementation of system for sorting

the problem of unions. All plans having ambition more than one year or those likely to have

an impact on other functional division well before approval implementation be routed

through management service division which will check the plan to see whether they are in

conformity with corporate objective.

The Managing of the organization is appointed by state Government. He/She is the IAS

officer. Earlier the posts of secretary, Managing Director of milk commissioner were

different, but these days M.D of the organization has the authority of all the three posts.

41
REGIONAL MARKETING OFFICE

Following are the six regional marketing offices:

1. MALDAHIA

2. RAMPUR

3. VARANASI

4. KAVI CHAURAHA

Through these offices marketing of PARAG have been monitored each of these office is

headed by Regional Manager (marketing) who has certain area of operation allocated to him

and has a warehouse located in that particular town. Product are transferred from the

manufacturing units under instruction from General Manager (Marketing) at the head office

to the respective ware house from where they are distributed either to stockiest or to the

clearing & forwarding agent. The regional manager is assisted in his marketing function by a

team of sale force. Entire marketing operation is monitored at the head office under the

supervision of the General Manager Marketing.

WORKING OF DIFFERENT DIVISIONS OF PCDF

ADMINISTRATION:

Administrative division has 4 sub divisions:

 PERSONNEL

 ADMINISTRATION

 E.D.P

42
 IN- CHARGE PUBLICATION

Personnel and administration division deals with welfare activities, promotion policies,

demotions, recruitments, transfer polices confidential reports, and other such activities.

Besides this they also make service under the guidance of Managing Director. There service

rules are made under the co-operative act.

E.D.P

The Electronic data processing has 2 divisions:

1. Data processing

2. System Management

In-charge Publication

This division carries out a news paper monthly by a name Dughdha Sahakarita. This gives

detail information about various technical inputs given to the society members. This

newspaper is circulated through various milk unions in the district.

FINANCE

1. Financial Management

2. Audit

3. Accounts

MATERIAL DIVISION

1. Centralized purchase and inventory control.

2. Milk procurement technical inputs.

 Milk procurement and farmer’s organization

43
 MARKETING

1. Liquid Milk Marketing

2. Milk product Marketing

1. Liquid Milk Marketing:

At present the liquid milk has been brand name PARAG is being distributed through local

units or milk in major cities.

ENGINEERING

This division has two sub divisions:

1. Project Engineering

2. Maintenance Engineering

RESEARCH AND DEVELOPMENT

1. Market Research

2. Product Research

PRODUCTS LINE OF PARAG DAIRY

Parag Dairy has a good product line of milk and milk products. It has introduced a number of

milk products in order to cater to the needs and demands of current and prospective

customers.

The dairy has launched variants of products in order to meet the requirements of all sections

of consumers.

44
TYPE OF MILK SPECIAL FEATURES SUITABLE FOR
Parag Gold (full cream m High fat, creamy Growing children, youth,

Milk) and sportsmen

Parag Toned (Toned Medium fat, All purpose milk

Milk) Reasonable price

MARKETING COMMUNICATION IN RURAL MARKETS

Marketing communication and promotion too possess problems in rural markets. There are

many constraints in maintaining the profile of the audience and availability of the media.

The literacy rate among the rural consumers being low, in addition to the level of literacy,

the tradition bound nature of rural people. Their cultural barriers and taboos and their overall

economic backwardness add to the difficulty of communication task. It has been estimated

that all organized media put together can reach only 30% of the rural population of India; TV

is an ideal medium for communicating with the rural masses. But it reaches in the rural areas

are limited even today. As regards the print media the circulation is limited. It has been

estimated that 33% of the total cinema earnings in the country comes from the rural India.

Rural communication to be effective repeat exposure is a must and if the gap between the

exposures is long the message looses during this period.

45
 In short the crux of marketing communication in the rural context is one of finding a media

mix that will deliver the required message in a cost effective manner to target an audience

that is predominantly illiterates.

OVERCOMING THE CONSTRAINTS AND MANAGING THE COMMUNICATION

TASK:

A company that seeks a long term in rural market has to squarely encounter these constraints

and find a way of communicating effectively with the rural target audience.

Selecting the media mix

Evidently, in the rural context the firm has to choose a combination of formal and non – formal

media. The possibilities are indicated below:

Media mix in the rural context

Formal and organized media

 TV

 Cinema

 Press

 Other print media

 Direct mail

 Radio

 Outdoors

46
 NON-FORMAL/ RURAL SPECIFIC MEDIA

 Information centre of company’s product

 Music records

 Study classes

 Demonstration

 House to house campaigning by special promotion required.

 Audio visual vans or publicity vans.

The formal organized media

T.V: With the increase in coverage and the increase in TV ownership in the rural areas TV

has the potential to become the primary medium for rural communication. Studies have

shown that 77% of the village in India now TV in potency and effectiveness.

CINEMA: - The cinema is a useful medium in the rural context. Most India villages have

one or more cinema halls and 29% of all rural people view cinema as a member of regular

lifestyle and habits.

0UTDOORS:-- Outdoors also lend itself well to rural communication. Infact presently many

companies are using the outdoor hoardings and wall painting etc.

THE NON – FORMAL/ RURAL SPECIFIC MEDIA

Audio visual publicity vans. The AV unit or the publicity van is very useful for rural

communication. The van is a comprehensive mobile promotion at the exclusive command of

the concerned firms. Naturally the AV vans are quite popular with rural marketing firms.

Practically all the firms in the agric. Input business have their own AV vans all over their

respective marketing territories. Phillips India has very successfully used the AV vans for

popularizing their radios in the rural market.

47
 COMPARISION WITH OTHER BUSINESS

In view of specific individual needs preference and requirements of various types of milk

with different special qualities have been developed in PARAG Dairy Company.

TYPES OF MILK

 PARAG TONNED MILK

 PARAG DOUBLE TONNED MILK

 PARAG SKIMMED MILK

 PARAG FULL CREAM MILK

SPECIAL FEATURES

 High fat , creamy

 Medium in fat content , reasonable price

 Medium in fat content , more economical price

 Fat free milk, very economical price

SUITABLE FOR

 Growing children, youth, and sportsmen

 All purpose milk

 Adult and weight conscious people

 Heart patients, diabetics etc.

48
 GOVERNMENT POLICES IS RELATED TO THE BUSINESS

Government is taking instruct in business because milk is using for human hea. And every

country wants their people should take milk regularly. Generally milk is basic food for

people. For growing child aged person and every common people be whole group of

member totally depend upon milk. Therefore it is fulfilled our basic needs. So in this reason

government could not adopt tax on milk. That is why its becomes very normal. Every

category people can be buying milk different branded And different types of milk is

DTM,FCM,AND SKIMMED MILK etc.

Government can also has been adopting to maintain milk quality that’s why (23 quality test

every day testing and checking milk in company).

Due to its reputation PCDF is currently implementing following development and promotion

programmes supported by Central/state government project dairy project, rural family

welfare project, Uttar Pradesh Diversified Agriculture support project. Besides this

government also helps rural people to given loans for dairy purpose.

Generally these facilities are given government in that people those small and marginal

farmers and landless labour and government also encourage rural Women and actively

participating dairying.

49
 TAX ASPECT

Sale tax is paid on milk product to government. There is nothing but in transportation Mandi

Tax is paid of 7% for ghee. There is no tax particularly in milk from one place to another but

in milk product government has adopted some tax.

50
 SWOT ANALYSIS OF PARAG DAIRY

STRENGTHS

ORGANIZATIONAL  Advantage of being first vertical dairy

in Asia

 Most hygienic &computerized dairy.

 Proper & adequate Infrastructure.

 Authority & responsibility clearly defined.

 Functional organization.
PRODUCTION
 Computerized & automated operation.

 Best quality products (23 quality checks)

 Comparable quality products.

FINANCE
 Funded by Govt. of U.P &Varanasi

 Adequate own funds

 Overall satisfactory financial position

MARKETING

 Number 1 brand in Varanasi

51
  Reasonable in price

 Good distribution network

PERSONNEL

 Highly qualified & motivated staff.

 Responsibility of staff clearly defined

 Staff aware on the objective set by top mgt.

WEAKNESSES

 Run and owned by govt.

 Low brand awareness in national Capital region.

 Less advertising and promotional expenditure.

 Low brand equity.

 Very average distribution.

52
 Weak position in the mind of customer.

 Lack of professionalism in sales force.

OPPORTUNITIES

 Growing awareness among consumers regarding nutritional value of milk products.

 Health positioning of brand because of growing concern among consumers regarding

health.

 Appropriate time to venture into production and marketing of UHT milk, to serve milk,

ice creams.

THREATS

 PARAG as a brand, being threatened by the major presence of Mother Dairy.

 Less advertising and promotional expenditure are currently negatively affecting and

shall do more harm in long run to the profitability of company.

 Lack of professionalism sucking the life blood of organization.

Lack of good distribution network threatens the very survival of company as well as the brand PARAG.

53
 LIMITATION OF THE PROJECT

1. Some people don’t give the remarkable answer, so the surveyor has to make his own

assumption

2. Since the survey has been conducted in Varanasi, being so big market it might not give

true picture.

3. The questionnaire was too long and many a times respondents used to refuse to fill the

questionnaire as they considered it to be time consuming.

4. The time period allotted for the study was limited as it had to be completed with this

stipulated period of time.

5. The number of respondent covered in the study is limited. Although all efforts has been

taken to make this study a representative of total market of Varanasi, the sample size is

too small so that data are not reliable. Most of the customer were busy in their work and

saying “sorry I don’t have time” .So it was very difficult to access information from those

people.

6. The respondents were unable to read exact data spontaneously.

It is very difficult to catch the exact word of customers through questionnaire

54
 METHODOIOGY

In marketing project the accuracy and authenticity of the obtained data depends upon the

partial skill which is exercised in preparing the project and selecting the most effective

technique of data collection.

TYPE OF RESEARCH DESIGN:

(1) Exploratory research

(2) Conclusive research

(3) Descriptive research

(4) Causal relationship

ANALYSIS & INTERPRETATION OF DATA

After collection of data, next task of research process is analysis and interpretation of data.

Questionnaire is processed and edited to make sure that all question are answered. He

resulting data should be logical and consistent. After editing, data are tabulated and analyzed.

Data analysis includes the statistical test which may be editing, coding, tabulation,

interpretation. Coding is the assignment of numbers to the observation so that data can be

analyzed, whereas tabulation refers to classification and cross classification of observed data.

The above things are common in all type of market research project. Statistical tests are

55
applied to certain such research where data are complex and casual relation is to be

established.

Statistical tests are useful to describe the data at hand, test hypothesis and make predictions

or estimates. Descriptive analysis is use to reduce data at hand to a smaller set of number of

summary measure represent information.

SAMPLING

According to a famous statistician “YULE’ the objective of sampling is to get maximum

information about parent population with minimum effort.

Probability sampling

1. Simple random sampling

2. Systematic sampling

3. Stratified sampling

4. Area sampling

Non- Probability sampling

1. Convenience sampling

2. Quota sampling

3. Judgment sampling

4. Panel sampling

56
Sampling unit

Sampling unit 100 retails outlets.

SAMPLING PROCESS

Two general’s classes of methods exist for selecting samples.

These are probability methods and non- probability methods

PROBABILITY SAMPLING METHODS:-

Probability sampling methods are those in which every item in the universe has a known

chance, or probability of being chosen for the sample. This implies that the selection of

samples items is independent the controlled objectively so that items will be chosen strictly

at random.

RESEARCH DESIGN OF PROJECT

A preliminary study of customers/ viewer’s user satisfaction was done by the method of

research. For this purpose structured and non -disguised questionnaire was prepared and

administered to various customers in different market segments like government houses,

corporate house and various other individuals.

57
58
 SOURCE OF INFORMATION:

Primary sources

Personal survey conducted with carports manager and other government’s officials.

QUESTIONNAIRE METHODS

The greatest advantage of the questionnaire methods is its versatility. Almost every problem

in marketing research can be studied only questioning. Questioning is usually faster and

cheaper than observing. As a result, less time is typically wasted in questionnaire study.

STRUCTURED NON DIS GUISED QUESTIONNAIRE:-

Most questionnaire studies made in marketing research are of this type. A structure interview

of this type introduced more reliable result. The purpose of the question is clear and thus

undisguised. It is simple to administer and easy to tabulate and analyze. This questionnaire

has also got the provision of the analyses. This questionnaire has also got the provision of the

analyses. This questionnaire has also got the provision go the alternative responses, which

helps makes clear the question.

NON-STRUCTURED NON-DISGUISED QUESTIONNAIRE

Unstructured and undisguised questionnaire is distinguished by the fact that the purpose if

the study is clear, but the response is the question is open –ended. The initials stimulus here

is constant. With is the interviewer attempts to get the subject to talk freely about their

attitudes towards movie channels/ services.

59
NON – STRUCTURED DISGUISED QUESTIONNAIRE

Many people are either unwillingly or unable to give accurate report as to their own attitudes

and motivations. To overcome this disguised methods are designed so that the respondents so

not know what the objectives of the study are such disguised methods may also be

unstructured. Projective technique is its type.

60
 SOURCE OF INFORMATION

Major sources of information for this project are customer scattered various area of

Varanasi. It was very difficult to gather the information from some of them as they were in

hurry and not willing to give the information related with the topic and sometimes not ready

to fill the questionnaire. They thought it was not beneficial for them and was just wastage of

time. But I would try to my best and make ready to fill the questionnaire told them that it is

also profitable for them.

Maximum customers gave very good response in filling questionnaire also provide extra

information related to topic .So that I have prepared this report

IDEAL MARKETING STRATEGIES FOR COMPANIES

1. Decrease in price

2. Improvement in quality of product

3. Better technology

4. Emphasis on advertising

5. Proper after sale service

6. More distributors.

7. Delivery regularly

8. Delivery timely

9. Proper market research.

61
The following major products marketed by company are as follows

Pure milk ghee

1.Name of the Product: Parag pure Ghee

2.Regular packing: 500gms.,1kg.,2kg.,15kg

3.Usage: Ideal for cooking, baking, garnishing and sweet

making.

4.Ingredients: Milk fat

5.Composition: Milk fat 99%

Moisture 0.3%
Calorie value 900 calorie per 100 g.

6.Quality standards: Acidity (0%Olcic Acid) 1% max.

Baudoin Test (-) ve.

7.Special Features: Made from fresh cream, has a typical rich aroma
and granular texture and ethnic product.

Meets AGMARK special grade

8. Product Specification

Tin pack: 1year

9.Shelf life: Poly pack: ½ year

62
Table Butter:

Name of the product PARAG PASTEURIZED BUTTER

Regular packing 100 gms.500gms. Duplex board carton,

400 gms tin pack.

Usage As table butter on toast, chapatti, in baking and

Cooking

Ingredient Butter,salt,Annatocolour

Composition Milk fat 80% min., Moisture 16% max.,salt 2.5%,

Curd 0.8%, calorific value: 720 calorie per
100 gms.

Micro-bio Standards Coli forms per ml.500 max.

Yeast and Mold –count 20 max.

Special features Made from fresh cream by hygienic method

Product Specifications Meets AGMARK Standards

Shelf Life 9 months at -10 degree to -12 degree c

Carton Size 20kgs. =305*305*286 mm

15 kgs. If 100 and 500 gms

63
Name of the product PARAG SKIMMED MILK POWDER

Regular packing 200 gms. Bag in Box

500 gms. Big in Box

200 gms. Poly Jar

500 gms. Poly Jar

Usage Ideal for making tea, coffee, sweet

Ingredient Milk SNF, Moisture

Composition Milk Fat : 1.25 Max

Protein : 35% ; Carbohydrate : 52%

Mineral 7 %; Moisture 3. 5 % ; Calorific value :350 c/100
GMS.It has excellent natural dispensability

Special features Meets ADPI extra grade and BIS extra grade

Product specifications 11/2 Years

Shelf life 500*30 =15 kg.

Cartoon size 200*90 = 18 kg.

64
 DAIRY WHITENER

Name of the product PARAG SURUCHI INSTANT MIX

Regular packing 500 gm. And 10 kg. tin

200 gm.And 500 gm. Bag in Box
Usage Ideal for making tea, coffee
Ingredient Partially skimmed milk and sugar

Composition Milk fat 19 % milk Protein 23 %,

Carbohydrates 51 %, Lactose 34 %,
Sugar 17 % , Minerals 5 %, Moisture 3 %
Special features Packed under nitrogen , and has excellent natural
Dispensability
Product specifications Meets BIS specifications for sweet and milk powder

65
 TYPE OF RESEARCH

My research project is quantitative and qualitative both because the question was both type the

variables are easily measurable in some question but in other question response are not easily

measurable .So I divided all the responses in some variable and then collect the data with the

help of this questionnaire and after that analyze the data which comes from the research.

Qualitative research is specially important in the behavioral science where the

aim is to discover the underlying motives of human behavior. Through such research we can

analyze the variables in a particular manner or which make people like or dislike a particular

things.

Route Number 2-1

Delivery Van Number HR 38E 7974

Number of Stops by the Van 14

Sales man Divendu Dhama

Chart

Properties Consumption of various milk

categories (in carates)

Dealer Name Location FCM T.M DTM SKM

Lal Babu Khoda 5 - 2 -

Colony
Harish store Jagat puri 1 - 1 -

Arivind store Jagat puri 3 - - -

Singhal store Jagat puri 66 - - 1

Sharma store Karkarduma 7 - 3 3

66
 mod
Manoj store Biswas Nagar 7 - -2 -

Kanu store Biswas 12 - - -

Nagar
Kusum store Bihari colony 3 - - 1

Vijay store Bihari colony 2 - - -

Aarti store Bihari colony 26 1 1 -

Deepak store Biswas Nagar 6 - - -

Sunil store Biswas Nagar 5 - 4 -

J K store Biswas 7 - - -
Nagar
Baba store Biswas Nagar 4 - - -

Route Number 1-2

Delivery Van Number UP 14 B 2437

Number of Stops by the Van 10

Sales man Pappu

Chart

Properties Consumption of various milk

categories (in Carates)
Dealers name Location FCM TM DTM SKM

Bahadur store Ashok Nagar 32 2 4 -

-Gautam store Sec.6 11 3 3 -

Varanasi
Kapil store Sec.5 23 4 3 -
Varanasi
Kailash store Sec.8 30 3 2 -
Varanasi

67
Sanjay store Sec.8 4 2 1 2
Varanasi
Saschin store Sec.8 6 1 5 -
Varanasi
Tiwari store Sec.8 7 2 3 1
Varanasi
Sharma store Sec.8 8 3 2 -
Varanasi
Devi lal store Sec.8 8 4 1 -
Varanasi
Dhulichand store Sec.11 6 5 5 -
Varanasi
Tundu store Sec.15A 9 6 3 -
Varanasi

Route Number 2-5

Delivery Van Number DL 1L C 5002

Number of Stops by the Van 22

Sales man Rajinder Singh

Chart

Properties Consumption of various milk

categories (in Carates)
Dealers name Location FCM TM DTM SKM

New fine bakery Selampur 2 2 3 -

Suresh store Maujpur 3 3 5 -

Chaudary store Maujpur 34 4 4 -

Radhaswami store Yamuna Vihar 2 5 6 -

Arpit Bakery Yamuna Vihar 23 6 - -

Bist store Yamuna Vihar 24 7 - -

Bansal store Yamuna Vihar 34 8 - -

68
Gupta store Yamuna Vihar 12 9 - -

Jain store Yamuna Vihar 26 1 9 -

Tanu store Yamuna Vihar 15 - - -

Dev Raj store Yamuna Vihar 18 5 6 -

Fauji store Yamuna Vihar 20 6 - -

Master store Khajuri 34 7 - -

Sarder store Khajuri 5 8 - -

Mahipal store Bhajanpura 7 2 - -

Pappu store Bhajanpura 44 1 - -

Shyam store Bhajanpura 4 3 6 -

Chhabra store Bhajanpura 3 4 - -

Chaumali store Bhajanpura 2 5 - -

Bara Bhani store Bhajanpura 1 7 5 -

Guruji store Bhajanpura 6 5 4 -

Chart

Properties Consumption of various milk

Route Number 2-7 categories (in carates)
Dealer Name Location FCM T.M DTM SKM
Delivery Van Number DL 1LD 4226
Ram Veer Tisrapusta 23 2 1 -
Number of Stops by the Van 14
Shyam store Sudamapuri 58 1 2 -
Sales man Karan Singh
Bachcha ram store Sudamapuri 34 - - -

Ashok store Arvind Nagar 100 - - -

Haridutt store Arvind Nagar 45 - - -

Krishna store Bhagpura 23 - 3 -

69
Vinod store Dayalpur 21 - 4 -

Rakesh store Munshi market 33 - 3 -

Maheshwari store Karol Nagar 23 - 2 -

Bharat store Mustakabad 3 - 2 -

Praveen store Mustakabad 4 - - -

Subhas store Mustakabad 42 - - -

Hasan Store Mustakabad 3 - - -

R K store Mustakabad 6 - - -

Route Number 7-3

Delivery Van Number DL 1L D 6451

Number of Stops by the Van 22

Sales man Raj Kumar

70
 Chart
Properties Consumption of various milk
categories (in Carates)
Dealers name Location FCM TM DTM SKM

Avadhesh store ITO 3 2 - -

Ramesh store Rajghat 5 4 - -

Bhim store Rajghat 6 - - 1

Rattan store Varanasi Gate 4 - - -

Neelam store Varanasi gate 8 - - -

Babli store Sadar Bazar 2 - - -

Sajeev store Sadar Bazar 5 - - -

Sahmim store Sadar Bazar 4 - - -

Mehtab store Sadar Bazar 6 6 - -

Man Singh store Pandav Nagar 7 - - -

Praveen stoe Pandav Nagar 8 - - -

Bharat store Modi Nagar 8 - - -

Master store Punjabi Bagh 3 3 - -

Vicky store Punjabi Bagh 12 - 1 -

Umesh store Punjabi Bagh 5 - 2 -

Ashwini store Punjabi Bagh 23 - 2 -

Sanjay store Saraswati Vihar 4 3- - -

Rajasthan store Saraswati Vihar 7 - - -

Rajeev store Saraswati Vihar 4 2 - -

Krishna store Karol Bagh 6 - - -

Shribhagwan store Sadar Bazar 7 - - -

71
-
-

Route Number 1-4

Delivery Van Number DL 1LE 0110

Number of Stops by the Van 10

Sales man Raj Singh

Chart
Properties Consumption of various milk
categories (in carates)
Dealer Name Location FCM T.M DTM SKM

Ravi store Nangla 1 - 32 -

Nanda store Nangla 2 2 12 -

Naseer store Bhangel 5 6 10 -

Top foods Bhangel 8 3 - -

Kapil store Phase –2 2 - 4 -

Akshay store Phase –2 2 - 2 -

Thompson press Phase –2 1 - 4 -

Rekha Kirana store Supiana 3 - - -

Pepsi Greater Varanasi - - - -

Varanasi Greater Varanasi - - - -

Authority

72
 TOOL AND TECHNIQUES

Tools and techniques which used in this project are:-

Measuring scales:-

♦ Nominal scale

♦ Graphics rating scale

Marketing research tools

♦ Survey

♦ Questionnaire

Statistical tools

♦ Bar diagram

♦ Pie chart

73
 DATA ANALYSIS OF VARIOUS CUSTOMERS OPINIONS

Q. What type of milk you generally use?

• Milk powder

• Pasteurized milk

• Non Pasteurized milk

Table 1

Milk powder Pasteurized Non Pasteurized milk

milk

8 80 12

What type of milk you generally use?

8%
28%
Powder milk 2
Pasteurized milk
Non pasteurized milk

64%

74
 • Findings: It was found that most of the consumers prefer to buy Pasteurized

milk.

Q. What brand do you prefer most?

• Parag

• Mother dairy

• Amul

• Gopal Jee

• Any Other

Table 2

Parag Mother dairy Amul Gopal Jee Any Other

20 40 20 12 8

What brand do you prefer most?

8%
20%
12% Parag
Mother dairy
Amul
20% Gopal jee
Any other
40%

75
Findings: Mother dairy got the highest rank i.e. 32% preference than comes Paras with

20%.

Q. Are you satisfied with milk you consume?

• Yes

• No

Table 3

Yes No
60 40

Are you satisfied with milk you

consume?

40% Yes
60% No

Findings: Most of the consumers is satisfied to Parag milk.

76
Q. What type of milk you used?

• Full cream milk

• Toned milk

• Double Toned milk

• Skimmed milk

Table 4

FCM TM DTM SKM

36 24 28 12

35%
30%
25%
20% 35%
15% 30%
25%
10%
5% 10%

0%
FCM TM DTM SKM

Findings: It was found that most of the customer preferred to buy full cream milk or

DTM

77
Q. On what basis you choose milk for consumption?

• Price

• Quality

• Availability

• Packaging

• Consumer Awaraness

• Brand Image

Table 4

Price Quality Availability Packaging Consumer Brand

awaraness Image
8 44 16 4 8 20

Price
On what basis you you choose milk
consumption?
Quality

Availability
20% 8%

8% Packaging

4% 44% Consumar
awareness
16%
Brand Image

78
 Findings: Most of the customers buy milk on the quality basis.

Q. Do you get the proper quantity of milk from the dealer, when you need

(Timely)?

• Yes

• No

Table 5

Yes No
80 20

79
 Do you get the proper quantity of milk from the
dealer?

20%

Yes
No

80%

Findings: Most of the consumers get milk from the dealer timely.

Q. How do you come to know about Parag milk?

• News paper

• Friends

• From the nearest shopkeeper

• Any other

Table 6

Newspaper Friends From the nearest Any other

shopkeeper
28 12 40 20

80
 How do you come to know about prag milk?

News paper
20% 28% Friends

From the nearest

12% shopkeeper
40%
Any other

Findings: It was found that the maximum number of consumers came to know about

Parag milk from the nearest shopkeepers.

Q. Do you want Parag milk in loose (without packet)?

• Yes

• No

Table 8

Yes No
16 84

81
 Do you want Parag milk in loose?

Yes
16%
Yes
No
No
84%

Findings: It was found that about 84% customers were not interested in taking milk in

loose.

Q. What type of packaging you prefer?

• Half liter

• One liter

Table 9

Half liter One liter

72 28

82
 What type of packaging do you prefer?

One litre
28%
Half litre
One litre
Half litre
72%

Findings: It was found that about 72% customers purchase half litre milk.

Q. Do you know about pasteurized milk and its effectiveness?

• Yes

• No

Table 10

Yes No
84 16

83
 Do you know about pasteurized milk and its
effectiveness?

No
16%
Yes
No
Yes
84%

Findings: It was found that about 84% of the regular customers were aware of the

pasteurized milk and its effectiveness.

Q. Do you know about quality control process used by different dairy firms?

• Yes

• No

Table 11

Yes No
64 36

84
 Do you know about Quality Control Process used
by different Dairy firms?

No
36% Yes
Yes No
64%

Findings: From the survey it was found that 64% of the customers were aware of the

Quality Control Process used by different dairy firms.

Q. DO you know that Parag milk is not only pasteurized but also clarified?

• Yes

• No

Table 12

Yes No
60 40

85
 Do you know that Parag milk is not only
pasteurized but also clarified?

No
40% Yes
Yes No
60%

Findings: From the survey it was found that 60% of the customers were aware that

Parag milk is not only pasteurized but also clarified.

Q. What is your option about the quality of Parag milk?

• Excellent

• Good

• Average

• Below Average

Table 13

Excellent Good Average Below Average

86
 44 24 16 16

12

10

8
Excellent
6 Good
4 Average
Below Average
2

0
Excellent Average

Finding: Most of the customer says Parag milk is excellent.

DATA ANALYSIS OF VARIOUS RETAILERS OPINIONS

Q. Which are the brands of milk you sell?

• Mother dairy

• Parag

• Amul

87
 • Gopal Jee

• Paras

• Any other

Table 13

Mother dairy Parag Amul Gopal Jee Paras Any Other

10 16 20 8 8 4

Which are the brand of milk you sell?

10
8 Mother dairy
6 Parag
4 Amul
Gopal Jee
2
Paras
0
Mother Amul Paras Any other
dairy

Findings: It was found that most of the retailers sold Mother dairy then Parag &

Amul.

Q. Why you prefer that particular brand?

• High demand

• High profit

• Easily available in time

88
• Good quality

89
 Table 14

High Demand High Profit Easy available in time Good Quality

40 20 16 24

Why you prefer that particular

brand?

Good High demand

quality High
24% High profit
demand
Easily 40%
Easily available
available in
High profit in time
time
20% Good quality
16%

Findings: It was found that most of the retailers sold On the basis of high demand.

Q. What is the most important factor when purchasing milk from company

distributor/salesman?

• Credit

• Margin

• Consumer scheme

• Quality

• Brand name

• Consumer preference

90
 Table 15

Credit Margin Consumer Scheme Quality Brand Name Consumer

Preference
16 20 8 28 16 12

What is the most important factor when purchasing milk from company
distributor/salesman?

Credit
Consumer Credit
preference 16% Margin
12%
Consumer
Brand name
scheme
16%
Quality
Margin
20% Brand name
Quality
Consumer
28% Consumer
scheme preference
8%

Findings: : It was found that most of the retailers sold On the basis of Quality.

Q. What type of milk generally you buy more?

• FCM

• DTM

91
 • SKM

• TM

Table 16

FCM DTM SKM TM

10 6 4 5

What type of milk generally you buy

more?
10
10
6 FCM
5
4
DTM
5
SKM
TM
0
FCM DTM SKM TM

Findings: FCM has highest range of selling among the customer.

Q. Whether you get the supply of Parag milk in proper quantity or not?

• Yes

• No

92
 Table 17

Yes No
68 32

Whether you get the supply of Parag

milk in proper time or not?

No
32%
Yes
No
Yes
68%

Findings: It was found that most of the retailer get supply in proper time.

Q. How is the behavior of the salesman of parag milk?

• Good

• Bad

• Normal

93
 Table 18

Good Bad Normal

11 8 6

How is the behavior of salesman parag

milk?

15
10
11
5 8 6
0
Good Bad Normal

Findings: It was found that most of the salesman behavior is good?

Q. Are there any short coming being face by the driver and the sales man in the

delivery process of parag milk?

• Yes

• No

• Can’t say

Table 19

94
Yes No Can’t say
56 24 20

Are there any short comings being faced by the drivers and the
salesman in the delevery process of Parag milk?

56%
Yes
No
24% Can't say
20%

Finding : Yes most people fullfill the shortage of parag milk by salesman.

Q. Is there regular defect in the packaging of parag milk?

• Yes

• No

• Need to be improved

Table 20

Yes No Need to be improved

22 73 5

95
 Is there regular defect in the packaging
of Parag milk?

5% 22%
Yes
No
Need to improve
73%

Finding : Yes the most people are saying regular defect of parag milk.

Q. Which type of milk consumers prefer most?

• Full cream milk

• Toned milk

• Double toned milk

• Skimmed milk

Table 21

Full cream milk Toned milk Double toned milk Skimmed milk
56 9 30 5

96
 Which type of milk consume prefer most?

Full cream milk

5%
Toned milk
30%

56% Double toned

milk
9%
Skimmed milk

Finding : most people are used full cream milk.

OPINION SURVEY

Survey is the systematic gathering of data from the respondent through questionnaire. There

is various technique of survey, which can be employed. They are: -

Personal interviews

Telephonic interviews

Mail questionnaire.

In this project survey is personal interview type. In it the investigators question the

respondents face to face. The usual approach for the interview is to identify himself to the

97
potential respondent and attempt to secure the respondent co-operation in answering a list of

predetermined questions.

Advantage of survey:-

The advantage associated with the survey technique are:-

1. It takes relatively short period of time to complete.

2. Research can be produce many difficult type of information.

3. The amount of information procured on each aspect is larger.

Disadvantage of survey:

Major disadvantage associated with the survey technique are:-

1. The cost per completed interview is relatively highly as compared to other method

2. The investigator may have to face relatively more difficulties in administrating the

interview schedule.

3. Time required is more as compared to other survey method.

Reasons of selection of survey technique:-

There are several factors, which need to be evaluated for selection of the most suitable

technique. These factor are:-

 Cost

 Time

 Accuracy

 Amount of data gathered

 Response rate

 Flexibility

98
 Control

National

Parag is the second largest distributor of milk in Varanasi and catering to its customers

since the last fifty years. We are looking forward to reliable business partners including

dealers and collaborators for effective business. We operate in close association with the

dairy experts and continuously upgrade the quality of our products.

International

India offers countless opportunities in the field of dairy industry, which is still flourishing.

Encouraged by the success in the domestic market, Parag is expanding the horizon of its

business and looking forward to the importers and foreign buyers for its dairy and industrial

products. products.

99
PARAG group enjoys the services of a state-of -the-art production unit for the manufacturing

of acid casein and dematerialized whey powder. Its leading position in the domestic market

will give us an edge over the

others.

Functional application

Casein :

International quality edible casein

1. For Nutraceutical, Health foods, Dietetic and Infant Food Application.

2. For conversion into Caseinates, hydrolysis’s.

3. For Medical Nutrition and Geriatric Foods.

4. For Lactose free food formulations.

5. For Sports foods and Weight Management formulas.

6. For Meat Products, Baked goods applications.

7. For Leather chemicals, Paper chemicals, Media preparations etc.

8. Parag Acid Casein finds a ready market in Germany and also caters to the domestic

market.

Whey and Whey products :

Whey Powder Dematerialized 90%

1. For Infant Food formulae, closest to the mother's milk.

100
 2. For Life style and Dietetic food formulations etc.

Whey Powder Dematerialized 70%

1. Cost effective substitute to SMP for Bakery, Confectionery and Ice cream

applications.

2. Excellent bulking agent for soup, Sauces and Salad Dressings.

For Dairy mixes, Coffee Whitener, Frozen Desserts Spice and Seasoning blends, etc.

101
Competitors of the company in the milk market.

Competitors of company in Varanasi market are:-

1. MOTHER DAIRY

2. PARAS

3. PARAG

4. AMUL

5. GOPALJI

6. MAMTA DAIRY

Main competitors of Parag milk are Mother dairy. Mother dairy is market leader in

Varanasi, maximum market share captured by Mother dairy.

102
 FIELD WORK PROCEDURE

Once the researchers have finalized the problem definition and research design steps, He

must conduct the actual data collection operation. The fieldwork is the most expensive of all

step .In a research project also the fieldwork is most prone to error. The researchers might be

in countered with a number of problem during the field work. The most common problem

during a field work are.:-

1. Not at home.

The people (sampling units) who the research wants to interview may not be available at

home. The researchers in such a situation may either call back poster or substitute another

house just adjacent or next-door.

2. Refusal to co-operate

The researchers may find the respondent at home but he may not obtain the desired co-

operation from them. Of the researchers it carefully selected and trained properly. He may

use his tactics to persuade the respond.

3. Respondents bias

The respondents may declined to co-operate the researchers must establish a report with the

respondent to avoid this. Event it they co-operate, respondents may give biased or misleading

answers to the question asked by the researcher

103
101

3. Interviewer bias

the interviewer may also introduce different types of bias in the answering to more facts of

their age, sex, manner or intention. In addition there may be conscious bias created by the

interviewers wing to his dishonestly. Every interviewer tries to finish his quota of interview

as quickly as possible and also at the cheapest possible cost

104
 FINDINGS AND RECOMMENDATIONS

1. There are a number of organized points and no single dealer is found to control the

whole area therefore the burden totally falls on the driver and salesman.

2. The scheduled time of delivery of milk is between 11 and 12 p.m but the driver go to

sleep first and afterwards load the van. This indicates the lethargic attitude towards

work.

3. The delivery of other brands of milk such as Gopalji, Mother dairy, amul, is earlier than

that of PARAG.

4. The delivery of the milk is totally unscheduled which results in the loose of market

share, which should be paid attention to with immediate effect.

5. The leakage of milk was found at various points of distribution because of which the

drivers and the salesman have to tolerate the rough behaviors of the dealers this

happens due to carelessness of production department and the dispatch personnel.

6. A focal point should be set up at Biswas Nagar so that the van does not have to make any

extra rounds to cater the demands of the dealers, and to facilitate the easy flow of milk

because that area is the major consumer of milk.

The condition of some delivery vans is miserable which should be improved so as to

enhance the efficiency of the salesman and the drivers.

8. PARAG booths have to be established at various points in Varanasi for easy and overall

distribution of milk.

105
• After Mother Dairy, Parag milk was found to be the next best alternative choice of the

dealers because of its early delivery.

• Most of the dealers are getting their supply as per the demand regularly but some times

variations occur.

• Many a time’s the drivers and the salesman have to face the anger of the dealers

because of the leakage in the packets of the milk.

• PARAG booths have to be established at various points in Varanasi and Far bad for

easy and overall distribution of milk

• Milk is not evenly distributed in the Haryana region as the delivery schedule is very

limited and there is not more than one van on this route.

• As PARAG Dairy, Varanasi packs milk for Mother Dairy of more than 1.75 lack liters

of milk Varanasi does not face any problem for milk.

• The Mother Dairy sells its milk at a cheaper rate in comparison to PARAG milk; hence

PARAG should also decrease its price in order to beat its competitors.

106
 SUMMARY / CONCLUSION

Most of the customers are attracted towards packed milk because in this method there is no

rationalization in comparison to loose milk. Most of the customers preferred full cream milk

because in this fat percentage is very high and is highly in demand by the customer.

After that second choice comes DTM because in this fat % is low and the aged person and

patient prefer skimmed milk. Most of the customers purchase decision depends upon the

quality of the milk. Time availability also affects their purchasing decisions.

In customers opinion sales of Mother Dairy is more followed by PARAG Dairy. Customer is

fully satisfied with its distribution channel, time availability, and other facility.

107
 BIBLIOGRAPHY

BOOKS REFERRED (AUTHOR’S NAME):

1. Ram swami V.S.

2. Namakumari S.

3. Marketing Management (kotler Phillip)

4. PARAG Journal

5. www.google.com

6. www.parag.com

108
 APPENDIX

Q. What type of milk you generally use?

• Milk powder
• Pasteurized milk
• Non Pasteurized milk

Q. What brand do you prefer most?

• Parag
• Mother dairy
• Amul
• Gopal Jee
• Any Other

Q. Are you satisfied with milk you consume?

• Yes
• No

Q. What type of milk you used?

• Full cream milk
• Toned milk
• Double Toned milk
• Skimmed milk

Q. On what basis you choose milk for consumption?

• Price
• Quality
• Availability
• Packaging
• Consumer Awaraness
• Brand Image

Q. Do you get the proper quantity of milk from the dealer, when you need
(Timely)?
• Yes
• No

Q. How do you come to know about Parag milk?

• News paper
• Friends
• From the nearest shopkeeper
• Any other
Q. Do you want any improvement in Parag milk?
• Yes

109
 • No
If, yes then what type of improvement do you want?
• Quality
• Price
• Packaging
• Availability
• Any other

Q. Do you want Parag milk in loose (without packet)?

• Yes
• No

Q. What type of packaging you prefer?

• Half liter
• One liter

Q. Do you know about pasteurized milk and its effectiveness?

• Yes
Q. Do you know about quality control process used by different dairy firms?

• Yes
• No

Q. DO you know that Parag milk is not only pasteurized but also clarified?

• Yes
• No
Q. What is your option about the quality of Parag milk?

• Excellent
• Good
• Average
• Below Average

Q. Which are the brands of milk you sell?

• Mother dairy
• Parag
• Amul
• Gopal Jee

Q. Why you prefer that particular brand?

• High demand
• High profit

110
 • Easily available in time Good quality

Q. What is the most important factor when purchasing milk from company
distributor/salesman?
• Credit
• Margin
• Consumer scheme
• Quality
• Brand name
• Consumer preference

Q. What type of milk generally you buy more?

• FCM
• DTM
Q. Whether you get the supply of Parag milk in proper quantity or not?

• Yes
• No
• TM

Q.How is the behaviour of the salesman of parag milk?

• Good
• Bad
Normal

Q. Are there any short coming being face by the driver and the sales man in the
delivery process of parag milk?

• Yes
• No
• Can’t say
Q. Is there regular defect in the packaging of parag milk?
• Yes
• No
• Need to be improved

Q. Which type of milk consumers prefer most?

• Full cream milk
• Toned milk
• Double toned milk
• Skimmed milk

111