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CHAPTER-I

INTRODUCTION

Today India is The Oyster of


entrepreneurs

the dairy industry ,It offer opportunities globe to

worldwide ,who wish to capitalized on one of the worlds largest

and fastest growing markets for milk and milk products. A bagful of pearls await
the international dairy producer in India .The India industry is rapidly growing , trying to
keep pace with the galloping

progress around the world. As he expends his over

operation of India many profile option a wait him. He many transfer technology.
Indias dairy sector is expected to triple its production in the next 10 years in view of
expending potential for export to Europe and west. Moreover with WTO regulations
expected to coming to force in coming years all the developed countries which are among
big expert 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 27cent with the US63cent and Japans $28 dollars. Also to take advantage of the
lowest cost of production and increasing production in the country multinational
companies are planning to expend their activities here.
The urban market for milk products is expected to grow at an accelerated pace

of

around 33% per annum to around Rs43,000 crores, by year 2005,the value of India dairy
produce is expected to be Rs 10,000 million .Presently the market is value at around
Rs7,00,000mn.

BACKGROUND

Analysis On Parag Distribution System

Indian dairy sector contributes the large share in agricultural gross domestic product.
Presently there around 70; 000village dairy cooperatives across the country. the cooperative societies are federated in to 170 district milk production union; which is turn
has 22-state co-operative dairy federation. Milk production gives employment to more
then 72mn dairy farmers. In terms of total production, India is the leading producer of
milk in the world followed by USA.The milk production in1999-00 is estimated at 78mn
MT as compared to 74.5mnMT in the previous year. The production is expected to
increase to 81mn MT by 2000-01.Of this total produce of 78mn cows milk constitute
36mn MT while rest is from other cattle.
Although milk production has grown at a fast pace during the last three decades
milk yield per animal is vary low. The main reasons for the low are;

Lack of use of scientific mulching.

Inadequate availability
Unavailability of deter

Milk yield comparison


Country

Milk Yield (Kg per year)

USA

7002

UK

5417

CANADA

5348

NEW ZEALAND

2976

PAKISHTAN

1052

INDIA

845

WORLD AVERAGE

3234

SOURCE: Export prospects for agro based industries; trade centre Mumbai

Production of milk India


Mayankar Singh
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Analysis On Parag Distribution System

Year
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11

Production

Per

55.7
58.0
60.6
63.8
66.2
69.1
72.2
75.5
78.3
80.6
84.4
86.2
88.1
97.1
97.1
100.9
104.8
105.5
109.3
110.5

capitalavailibilty(gms/day
178
182
187
194
197
202
207
213
217
220
225
230
231
241
233
246
252
259
265
289

Source: DFPI Annual Report 1991-2010

FUTURE PROSPECTS
India is the worlds highest milk producer and all set to become the world largest food
factory. Incelebration India dairy sector is now ready to invite to NRIs and foreign
investor to find company a place for the mammoth investment project. Be it investors,
researchers entrepreurs or the merely curious-India sector has something for everyone.

Mayankar Singh
1106170070

Analysis On Parag Distribution System

Milk production is relatively efficient way of converting vegetable material into animal
food .dairy cows buffaloes goats and sheep can eat fodder and crop by products, which
are not eaten by humans. Yet the loops of nutrients energy and equipment required in
milk and handling inevitably make milk comparatively expensive food. Also if dairying
is to play is part in rural developments policies the price of milk producer has to be
remunerative. In a situation of of increase international price low availability of food aid
and foreign exchange constraint, large scale subsidization of milk conception will be
difficult in the majority of develop country.
The national dairy development board was created to promote fianc and support
producer owned and controlled organization. NDDBs programmers and activities seek to
strengthen farmer cooperative and support national policies that are favorable to the
growth of such institutions. Fundamental to NDDBs efforts cooperative principles and
cooperative strategies.

MILK PRODUCTION
Indias milk production increased from 21.2 million MT in 1968 to88.1 melon MT in
2008-9
per capital availability of milk presently is 231 grams per day, from 112 grams per day in
1968-69

Mayankar Singh
1106170070

Analysis On Parag Distribution System

Indias 3.8 % annul growth of milk production surpasses the2% growth in production, the
net increase in availability is around 2% per year

OBJECTIVE

The purpose of research is discover answer to question through the application of


scientific procedures .The main aim of research is to find truth which is hidden and which
has not been discovered as yet. The market research was done with primary objective of
Mayankar Singh
1106170070

Analysis On Parag Distribution System

studying the role of PARAG providing parag product to the consumer easily &according
to their teste.major objective of my survey;

1. To know the actual demand of Parag products of various booths.


2. To know availability of Parag milk in the market.
3. To know the the margin satisfaction to agents
4. To know the consumer perception about the PARAG products and know the
positive &negative aspects of organization.
5. To known what is known image of organization in the market.
6. To known the why they purchase PARAG
7. To give suitable suggestion
8. To get the main finding base of questionnaire.
9. To know awareness of agent &consumer about Parag products.
10. To know SWOT or company strength, weakness, opportunity &threats)
11. To known distribution channel, and sales area of product.
12. To determine the appropriate delivery time of the Parag milk product.

LIMITATIONS OF STUDY
The edifice of the study entirely stands up on the pillar of information given by
respondent
Mayankar Singh
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Analysis On Parag Distribution System

Limitations applicable to the questionnaire method may be applicable to this


study, as biased answers, memory access variation, in cooperative and doubtful
approach.
The time for study was very short.
The secondary data available for comparative analysis is only for the period of
2010-2011
Due to various factors associated, the information provided by customer has its
own bias.

RESEARCH METHODOLOGY
Research is an organized enquiry designed and carried out to proved information for
solving a problem

Mayankar Singh
1106170070

Analysis On Parag Distribution System

Research methodology is away to systematically solve the research problem, It may be


under stood as a science of studies how research is done scientifically in study various
step that are generally adopted by researchers is study is research problem along with
logic behind them.
RESEARCH METHODOLOGY
In this chapter I present and discuss the Methodology of my research. I will discus my
choice of research purpose As well as my research strategy further, my data collected
method, Data analysis. Finally, i discuss the validity and reliability of my study.
PURPOSE OF RESEARCH: The Purpose Of an Academic Study Can be Exploratory,
Descriptive or Explanatory.

EXPLORATORY STUDIES
This type of study are practical if you wish to clarify your understanding of a problem
Have we should follow the exploratory studies describes as a method of Findings out
What is happening; to seek new insights; to ask questions and to asses phenomena in a
new light
DESCRIPTIVE STUDIES
This type of study is appropriate when you wish to portray phenomena such as events,
situations or a process.
Furthermore, a descriptive study is also appropriate when the problem is Clearly
structured, but the intention is not to conduct research about the Connections between the
causes and symptoms. EXPLANATORY STUDIES this type of study is useful when u
wish to establish casual Relationship between variables. The emphasis in this sort of
study is to Examine a situation or a problem in order to explain the relationship Between
the variables.

My study is based on Exploratory research where I had gone through

practical study as a survey on agent and consumer Sample:- The data has been collected
by selecting a sample size of 100 Sellers and 150 consumers, and various sampling
Mayankar Singh
1106170070

Analysis On Parag Distribution System

techniques has been Used to collect data. Sampling techniques which has been used in
Data is Random sampling.

Research design
The research design are calcified on the base offundamental objective of the research

Exploratory Research
1. Search of secondary data
2. Survey of knowledge
3. Case study

Conclusive Research
Descriptive and experimentation

DATA COLLECTED METHOD: :


PRIMARY METHOD OR RESEARCH
Primary data are those which are collection for the first time and are those original
characters. Primary data are in the shape of row mate rialto which statistical method is
applied for the purpose of analysis &interpretation primary are been collection in market
by three basic methods:

Survey of person

Observation

Experiment

I have collection primary data by the method survey of person .Because of systematic
getting of data from respondents through questionnaire ,which is object oriented simple
accurate and systematic motivating to respondent and complete in information concern .
Mayankar Singh
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Analysis On Parag Distribution System

SECONDARY METHOD OR RESEARCH


Secondary method is the source of information from secondary ways such as Websites,
Books, Magazines, and Articles etc. I collected my data inboth ways Primary and
Secondary method.

Data Analysis Lucknow Milk Union LtdSurvey


Area- Gomti Nagar, Indira Nagar, Kapoorthala, Vikasnagar Data Analysis Lucknow
Producers Co-Operative Milk Union Ltd Survey
Area- Gomti Nagar, Indira nagar, Kapoorthala, Vikasnagar Agents Survey Report I Have
meet with around 100 sellers of milk and found theFollowing information from the
agents answer of the relevant questionnaire. These charts are made according to the
founddataDuringresearchon100questionnaire.ProductNofAgentsParag60Amul40
INTERPRATAION
Here I have taken sample size of agent is 100 to understand the total market share on
milk brand.

SOURCE OF DATA

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Usually the information to solve the problem cannot be found in internet of publish
external record. The research must be depending on primary data, which are collected
scientifically for the study.
Data are mainly these types:

Primary Data
Primary sources refer to data collection directly from the market place like customer,
trades &suppliers. They are often reliable data source &help in over coming limitations
of secondary data.

Primary data is mainly of types


1

census

sample

Questionnaire -

used for survey method

Interview schedule used for exploratory research


Questionnaire:
This inmost important tool for data collection. A questionnaire contains question that
researcher ask his respondents to customer.

Question design

Determine the objective of survey.


Determine the type of questionnaire to use
Decided on question of sequence
Decided the length of questionnaire.
Administrating the questionnaire.

Type of questionnaire
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Analysis On Parag Distribution System

Open ended question


A type of question that require participants to response in her /his own word without
`being restricts to pre-define response choice is known as open ended question, open,
ended question are structure in the themselves All those proved for un structure response.
There is define structure in the arrangements of the questioning the questionnaire .The
help establishedresponce, gate information increased understand open ended question act
as memory prompt.
Close ended question
Question witch restrict the interview answer to pre- define response option are called
close ended .close ended give responded finite set a specified response to chooses from
such question are demand appropriated acts when the respondents has specific answer to
give when the research has pre define set answer to mind when detail narrative
information is not needed when there is a finite number of way to answer to question

Binary
Ranking
Choice

Demographic question
There are necessary part of every survey .Responses to survey question can not to be
analyzed until they sorted out according to different charestrisitise pertaining to the study.
This aspect is true for survey that analysis response based on the demographic
characteristics of response, question related to age sex location occupation etc.

Sample:

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Analysis On Parag Distribution System

As ample is selection of unit from entire group called population on universe of interest.
In market a sample is particular segment or part of market &it isfocusof marketing
decision, which many be applied to entire market.
Sample size:
To know the consumer perception about milk product and to determine the demand of
milk product in Lucknow .As ample size of 100 consumer has been taken. Sample
procedure How they are to be selected on reaching different booths the consumer who
appeared accessible with prospects of information where surveyed. We how no juddered
sample because consumers were fully cooperative &survey according to the desire of
consumer.

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CHAPTER II
COMPANY PROFILE
The common brand name of the company is PARAG the meaning of PARAG is the
pollen of flower the slogan in the logo is:PURE NATURAL & GOOD HEALTH
Parag milk shed is situated in the Lucknow, the capital of Uttar Pradesh since
independence it has formed part of the traditional supply line of agriculture products from
the village to the big cities rich in its milk potential the milk shed has, in the source of
last few decades been thoroughly exploited by small traders and powerful contractors and
well organised private dairies. Thus while such intermediaries were retaining large
profits the rural milk producers found their position deteriorating day by day.
In 1950 a co-operative milk supply union was organised in Lucknow, which started
collecting milk from village and supplied to Lucknow and local markets.This milk union
continued function for about a decade, in the mean time Lucknow milk scheme was
established by government of India in 1959-60 to ensure chaeaper milk to the local
population in Lucknow.The scheme started operating through 12 chilling centres in
eastern Uttar Pradesh. These chilling stations were mainly coated in the district of
Lucknow, Barabanki, Raebareli, Kanpur, Unnao, Sitapur, etc. The milk was mainly
collected through contractors. 10 milk union were also found almost at the same time,
around each chilling center. These continued functioning in a rather lop-sided manner till
1977.Gradually all the milk union almost become disfunctioning and was supplying very
little quantity of milk during the years 1970-77. Obviously the contractors had monopoly
and collected major share of milk which was either supplied to L UCKNOW or to the
local population of the city.
This programme was launched in Uttar Pradesh in 1972 and the implementing agency in
the was pradeshik dairy federation limited was framed in the year. The basic idea was to
replicate and pattern societies in Uttar Pradesh. In august September 1972.
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Analysis On Parag Distribution System

Organization of societies in Lucknow district was taken up bar out, Mohanlalganj,


Amausi blocks. A spear head team from national from national dairy development board
was posted in Lucknow, which started functioning from April 1978 with a team of 27
employees drawn from Lucknow milk 198 milk procurement cooperative societies by the
year 1981, when the operation flood-14 programme ended.
Feeded balancing dairy, Lucknow Producers Co-operative Milk Union Ltd was set up
under operation flood-1 programmer with the specific products. This dairy is situated in
the middle of Lucknow. The dairy was commissioned in April 1978 and processed the
liquid milk procured from the then milk shed comprising Lucknow, Raebareli, Barabanki
and Unnao.
The purpose of establishing feeder balancing dairy, Lucknow co was to provide
remuneration market for milk produced in the milk shed comprising district of Lucknow,
Barabanki, Raebareli, Kanpur and Sitapur as envisaged under operation flood-1 scheme.
Thus feeder balancing dairy was obelised to receive entire surplus milk from the rural
areas, through a network of milk coop. In 1078-79 the average handling of milk per day
at FBD-Lucknow Producers Co-operative Milk Union Ltd. Was 49,300 kg. With peak
handling of 1,04,950kg in the Feb.
In april 1981 Lucknow Producers Co-operative Milk Union Ltd. Launched pasteurized
whole milk packed in polythene sachet for local consumers. The supply of milk was
gradually extended to other local markets.
As the basic idea of establishing FBD- Lucknow Producers Co-operative Milk Union
Ltd. Was to convert surplus milk into various dairy- products, this activity started in
September 1978 with manufacture of skimmed milk powder and ghee. The
manufacturing of table butter was started from April 1981.

Mayankar Singh
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Analysis On Parag Distribution System

In view of milk production procurement and marketing potential of Lucknow Producers


Co-operative Milk Union Ltd, and expansion programme has been undertaken by
N.D.D.B.on turn basis. The target set is as under:
Increase processing capacity from 1lakh to 3.5 litres per day.
Increase power plant capacity from 10 tons to 40 tons per day.
Increase the capacity of ghee plant from 1.m.t to 4.m.t. per day.
Increase the capacity of butter manufacturing up to 16.m.t. per day.
The work of expansion has been complete in 1989.
The work of expansion has been complete in 1989.
The work of expanded dairy started functioning on full capacity in 991-1993 year. The
liquid milk and products are selling in the market in thr brand name of PARAG. The milk
product has been started by P.C.D.F. Lucknow. The sale of the milk has been carried out
Lucknow Producers co-operative milk union Ltd., Lucknow.
In the year 1983 P.C.D.F. Ltd. Started working under operation flood-II (white
revolution) scheme. Mostly milk union sahakari board werte connected under operation
flood-II, having the name Dughdh Utpadak Sahakari Sangh ( D.U.S.S.) Ltd. P.C.D.F.
Ltd. Takes royalty of common brand name PARAG and all the important policy taken by
Pradeshik Co-opearative Dairy Federation Ltd. i.e. Lucknow,Kanpur, Varanasi.
PARAG provides hygienic, nutritious milk and milk product. In the year 1983 opeartion
Flood-II scheme was launched, the main objectives of the operation flood were
following

To collect the milk directly from the producers(villagers through society).


To ensure the supply of quality milk collected from the villagers which being sold

in the market area of the city.


To save the producers , villagers and the customers from the middleman.
The milk is collected firstly to the society level then it comes to D.U.S.S. level
finally it comes under the state level i.e. federation.

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Analysis On Parag Distribution System

ORGANISATION HIERARCHY

BC
OH
A
RI
DR
OM
FA
DN
I
E
C
T
O
R
S

MARKETING DEPARTMENT
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Analysis On Parag Distribution System

MM
AAAA
RR
KK
EE
TT
NNII
GN
RG
E
S
E
A
R
C
H

ABOUT THE ORGANIZATION

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Analysis On Parag Distribution System

Name of the organization;

Lucknow Production Co-operative Milk Union ltd

Address of the organization

22, Joplin Road, Lucknow

Established;

1938

Registration;

23 March 1938

First Dairy Inspector

N.K Bhargva

Place of establishment

Initially at char bag,


Shifted to Ganeshganj, Presently at 22, Joplin
Road, Lucknow.

Founder

Ray Bhadur Gopal Lal Pandya

Administrator

Mr. Chandra Bhanu

General Manager

Mr. S.K.Prasad

Manager administration

Mr.U.N. Singh

Marketing In charge

Mr.V.K. Saxena

Marketing Manager

Mr.Vishal Kumar
Mr.K.V.Yadav

Supervisor/Route In charge

Mr. Yogendra Yadav


Mr. R.R.Dubey.
Mr. Mahesh
Mr. Gupta

The common brand name of the company is PARAG the meaning of PARAG is the
pollen of flower the slogan in the logo is:PURE NATURAL & GOOD HEALTH
Parag milk shed is situated in the Lucknow, the capital of Uttar Pradesh since
independence it has formed part of the traditional supply line of agriculture products from
the village to the big cities rich in its milk potential the milk shed has, in the source of
last few decades been thoroughly exploited by small traders and powerful contractors and
well organised private dairies. Thus while such intermediaries were retaining large
profits the rural milk producers found their position deteriorating day by day.
Mayankar Singh
1106170070

19

Analysis On Parag Distribution System

In 1950 a co-operative milk supply union was organised in Lucknow, which started
collecting milk from village and supplied to Lucknow and local markets.This milk union
continued function for about a decade, in the mean time Lucknow milk scheme was
established by government of India in 1959-60 to ensure chaeaper milk to the local
population in Lucknow.The scheme started operating through 12 chilling centres in
eastern Uttar Pradesh. These chilling stations were mainly coated in the district of
Lucknow, Barabanki, Raebareli, Kanpur, Unnao, Sitapur, etc. The milk was mainly
collected through contractors. 10 milk union were also found almost at the same time,
around each chilling center. These continued functioning in a rather lop-sided manner till
1977.Gradually all the milk union almost become disfunctioning and was supplying very
little quantity of milk during the years 1970-77. Obviously the contractors had monopoly
and collected major share of milk which was either supplied to L UCKNOW or to the
local population of the city.
This programme was launched in Uttar Pradesh in 1972 and the implementing agency in
the was pradeshik dairy federation limited was framed in the year. The basic idea was to
replicate and pattern societies in Uttar Pradesh. In august September 1972.
Organization of societies in Lucknow district was taken up bar out, Mohanlalganj,
Amausi blocks. A spear head team from national from national dairy development board
was posted in Lucknow, which started functioning from April 1978 with a team of 27
employees drawn from Lucknow milk 198 milk procurement cooperative societies by the
year 1981, when the operation flood-14 programme ended.
Feeded balancing dairy, Lucknow Producers Co-operative Milk Union Ltd was set up
under operation flood-1 programmer with the specific products. This dairy is situated in
the middle of Lucknow. The dairy was commissioned in April 1978 and processed the
liquid milk procured from the then milk shed comprising Lucknow, Raebareli, Barabanki
and Unnao.
Mayankar Singh
1106170070

20

Analysis On Parag Distribution System

The purpose of establishing feeder balancing dairy, Lucknow co was to provide


remuneration market for milk produced in the milk shed comprising district of Lucknow,
Barabanki, Raebareli, Kanpur and Sitapur as envisaged under operation flood-1 scheme.
Thus feeder balancing dairy was obelised to receive entire surplus milk from the rural
areas, through a network of milk coop. In 1078-79 the average handling of milk per day
at FBD-Lucknow Producers Co-operative Milk Union Ltd. Was 49,300 kg. With peak
handling of 1,04,950kg in the Feb.
In april 1981 Lucknow Producers Co-operative Milk Union Ltd. Launched pasteurized
whole milk packed in polythene sachet for local consumers. The supply of milk was
gradually extended to other local markets.
As the basic idea of establishing FBD- Lucknow Producers Co-operative Milk Union
Ltd. Was to convert surplus milk into various dairy- products, this activity started in
September 1978 with manufacture of skimmed milk powder and ghee. The
manufacturing of table butter was started from April 1981.
In view of milk production procurement and marketing potential of Lucknow Producers
Co-operative Milk Union Ltd, and expansion programme has been undertaken by
N.D.D.B.on turn basis. The target set is as under:
Increase processing capacity from 1lakh to 3.5 litres per day.
Increase power plant capacity from 10 tons to 40 tons per day.
Increase the capacity of ghee plant from 1.m.t to 4.m.t. per day.
Increase the capacity of butter manufacturing up to 16.m.t. per day.
The work of expansion has been complete in 1989.
The work of expansion has been complete in 1989.
The work of expanded dairy started functioning on full capacity in 991-1993 year. The
liquid milk and products are selling in the market in thr brand name of PARAG. The milk
product has been started by P.C.D.F. Lucknow. The sale of the milk has been carried out
Lucknow Producers co-operative milk union Ltd., Lucknow.
Mayankar Singh
1106170070

21

Analysis On Parag Distribution System

In the year 1983 P.C.D.F. Ltd. Started working under operation flood-II (white
revolution) scheme. Mostly milk union sahakari board werte connected under operation
flood-II, having the name Dughdh Utpadak Sahakari Sangh ( D.U.S.S.) Ltd. P.C.D.F.
Ltd. Takes royalty of common brand name PARAG and all the important policy taken by
Pradeshik Co-opearative Dairy Federation Ltd. i.e. Lucknow,Kanpur, Varanasi.
PARAG provides hygienic, nutritious milk and milk product. In the year 1983 opeartion
Flood-II scheme was launched, the main objectives of the operation flood were
following

To collect the milk directly from the producers(villagers through society).

To ensure the supply of quality milk collected from the villagers which being sold
in the market area of the city.

To save the producers , villagers and the customers from the middleman.

The milk is collected firstly to the society level then it comes to D.U.S.S. level
finally it comes under the state level i.e. federation.

CHPATER III
MARKETING
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1106170070

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Analysis On Parag Distribution System

In 2003-04, average dairy cooperative milk marketing stood at 148.75 lakh per year annul
growth has average about 4.2 percent compounds over the last five years.
Dairy cooperative now market milk in about 200 cities including metros and some 550
smaller towns..
During the last decade the daily milk supply per 1000 urban consumer has increased from
17.5 to52.0 liters.

Innovation
Bulk vending saving money
Milk travel as far as 2,200 kilometer to deficit carried by innovative rail and road
tankers.
Ninety five percent of dairy equipment is produced in India, saving valuable foreign
exchange.

CONSTITUTION
The national Dairy Developments Board has been constitutes as a body corporate and
declared an institution of national importance by an act of India Parliament.
The national dairy developments Board initially reiterated as society under the
society ,,Act 1860 was merged with the erstwhile India Dairy Cooperation ,a company
formed and registration under the company Act 1956 ,by an act of India Parliaments the
NDDB Act 1987 with effect from 12 October ,1987. The new body corporate was
declared an institution of national importance of act.

CONSUMER FOCUS
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Analysis On Parag Distribution System

Many companies today have a consumer focus (or consumer orientation).This implies
that the company focuses its activities and product on consumer demands. Generally
there are three way of doing this:
1. The customer-driven approach,
2. The sense of identifying market change and
3. The product innovation approach.
The customer-driven approachConsumer wants are the derived all the strategic marketing decision. No strategy is
pursued unstill it passes the teat of consumer research. Every aspect of a market offering,
including the nature of the products itself is derived by the need of potential consumer the
start point is always the consumer .The rationale for the approach is that there no points
spending R&D funds developing products that people will not buy .History attested to
many product that were commercial failures in sprite of being technology break through.
Former approach of this consumer focused marketing is known as SIVA (solution
Information value and Access,).This system is basically the 4ps remand and reworded to
provide a consumer focus. The SIVA model provided a demand /costumer centric version
alternative to the known 4ps supply side model of marketing managements.
2. product

solution

3. promotion

information

4. price

value

5. Place

access

The four elements of the SIVA model are:

Solution

Information

Value

Access

SALE PROMOTION
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Analysis On Parag Distribution System

Sales promotion is different promotion, Sales promotion refers to those marketing


activities other than personal selling, advertisement and publicity, which stimulate
consumer purchasing and dealer effectiveness, such as displays, shows and expositions,
demonstrations and various non-recurrent selling efforts not in the ordinary routine. Its
purpose is to increase the desire of salesman, distributors and dealers to sell a certain
brand and to make consumers more eager to buy that brand. This includes sales activities
which supplement both personal selling and advertising.
Sales promotion is only a part of promotion. Promotion includes sales promotion,
advertising, personal selling etc. Promotion helps to make all other marketing activities
more effective and efficient, but sales promotion helps only to sales activity. Sales
promotion may be done with the help of tools like displays, exhibitions, free sample
coupons, premium etc. Sales promotion acts as a link between advertisement and
personal selling.
To sum up, promotion is to make the demand inelastic, while there is change in the price.
So promotion must stimulate the consumers to buy more.

Communication and promotion


Marketing communication involves, sharing of meaning, information, concepts, about the
products and services by buyers and sellers. Such communications are conveyed with the
help of advertisement, salesmanship and sales promotion. A communication will be
treated as effective only when it is properly responded by the buyer. The communication
must have identical meaning for both sender and receiver. If the communication does not
properly reach the receiver or the message received is not the same as the message sent,
then that will be called Break down at the message stage. In the market communication,
feed back means a response, a reaction over the message sent back by a customer to the
sender. In the case of effective communication feed back will be always present.
Need for Product Promotion

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Analysis On Parag Distribution System

a) To introduce a new product in the market.


b) To influence the public with the help of new uses of the product.
c) To increase the frequency of purchase by each buyer.
d) To encourage dealers to stock more goods.
e) To withstand in the competitive field.
f) To increase the sales by imparting special training to salesmen and by window display.
Effects of Promotion
1. The present day market is very competitive due to the large number of rivals and
substitutes. With the help of promotion producer must create product differentiation in the
minds of consumers.
2. Promotion is very essential to communicate the use of the product and the nature of the
product to consumers and middlemen
3. Nowadays most of the consumers market their products in wider area and the
consumers are also very large in number. In such cases personal selling alone cannot be
used and so all the steps for promotion are to be followed.
4. During the periods of depression it is essential to maintain at least some minimum
market. Therefore it is very essential to use promotion.
Promotional Strategy
1. Deciding Promotional Mix
(a) Nature of the product
(b) Nature of the Customer

(c) Nature of the Market.


(d) Availability of Funds
The amount of funds available for promotion will decide the promotional mix. The
companies having huge funds for promotion will favor advertisement and try to cover
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wider market. If the funds are available are less than maximum portion of such funds will
be allocated for personal selling in a limited area. These funds may be used for window
display also.

Internal

External

Internal reasons

Top managements is more conducive to spending on promotions.

Line manager under greater pressure to achieve targets

Justification of expending is easy.

External reason

Increase in number of brand

Greater pressure from trade to liquidate stocks


SP is two type

Trade

Consumer

Trade promotion

liquidating heavy inventories

Persuade retailers to carry stock, carry more usual stock, promote brand franchise

Consumer promotion

Stimulate purchase

Induce trial

Create new use

Increase repurchase from occasional customers

Reward loyal customers.

Forms the trade promotion


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Bulk discounts

Free material

Display windows

Redistribution incentive Shop salesmen incentive

Form of consumer promotion

Free sample free gift

Coupons

In packs

Price packs

Price off

Bundling offer

While the advertising budgeting are controlled by the manager, SP budgeting usually are
controlled by the sales managers
The more the products quality and its advertising

The distribution channel


Distribution is also a very important component of Logistics & Supply chain
management. Distribution in supply chain management refers to the distribution
of a good from one business to another. It can be factory to supplier, supplier to
retailer, or retailer to end customer. It is defined as a chain of intermediaries; each
passing the product down the chain to the next organization, before it finally
reaches the consumer or end-user. This process is known as the 'distribution chain'
or the 'channel.' Each of the elements in these chains will have their own specific
needs, which the producer must take into account, along with those of the all-

important end-user.
Channels
A number of alternate 'channels' of distribution may be available:

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Distributor, who sells to retailers,

Retailer (also called dealer or reseller), who sells to end customers

Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alice from


producer to consumer in certain sectors, since both direct and indirect channels
may be used. Hotels, for example, may sell their services (typically rooms)
directly or through travel agents, tour operators, airlines, tourist boards,
centralized reservation systems, etc. process of transfer the products or services
from Producer to Customer or end user.

There have also been some innovations in the distribution of services. For
example, there has been an increase in franchising and in rental services - the
latter offering anything from televisions through tools. There has also been some
evidence of service integration, with services linking together, particularly in the
travel and tourism sectors. For example, links now exist between airlines, hotels
and car rental services. In addition, there has been a significant increase in retail
outlets for the service sector. Outlets such as estate agencies and building society
offices are crowding out traditional grocers from major shopping areas.

Channel decisions

Channel Sales is nothing but a chain for to market a product through different
sources.

Channel strategy

Consumer location

Type of marketing channel


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Intensive distribution - Where the majority of resellers stock the 'product' (with
convenience products, for example, and particularly the brand leaders in
consumer goods markets) price competition may be evident.

Selective distribution - This is the normal pattern (in both consumer and industrial
markets) where 'suitable' resellers stock the product.

Exclusive distribution - Only lambard specially selected resellers or authorized


dealers (typically only one per geographical area) are allowed to sell the 'product'.

Channel motivation

It is difficult enough to motivate direct employees to provide the necessary sales


and service support. Motivating the owners and employees of the independent
organizations in a distribution chain requires even greater effort. There are many
devices for achieving such motivation. Perhaps the most usual is `incentive': the
supplier offers a better margin, to tempt the owners in the channel to push the
product rather than its competitors; or a compensation is offered to the
distributors' sales personnel, so that they are tempted to push the product. Julian
Dent defines this incentive as a Channel Value Proposition or business case, with
which the supplier sells the channel member on the commercial merits of doing
business together. He describes this as selling business models not products.

Monitoring and managing channels

In much the same way that the organization's own sales and distribution activities

need to be monitored and managed, so will those of the distribution chain.


In practice, many organizations use a mix of different channels; in particular, they
may complement a direct salesforce, calling on the larger accounts, with agents,
covering the smaller customers and prospects. These channels show marketing
strategies of an organization. Effective management of distribution channel

requires making and implementing decision in these area.


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Analysis On Parag Distribution System

Specific distribution-related decisions include:

the number of layers between the company and the customer (channel depth)
the specific type of partners in each layer (e.g. wholesalers or distributors,
mass merchants or high-end specialty retailers)

the number of partners at each layer (channel breadth), and the geographic

placement of partners (location, density).


These strategic and logistical decisions frame the distribution channels (from a
marketing perspective) or downstream supply chain (from an operations

perspective) for a company's product


For example, Coke seeks to be ubiquitous ("always within an arm's length") with
very broad distribution across markets via numerous outlets of many different

types (e.g. grocery and convenience stores, restaurants, vending machines).


At the other end of the continuum, some companies choose to distribute their
products through relatively few, geographically clustered specialty stores (e.g.
innovative, tech-based entertainment products - like TiVo -distributed through
electronics stores like Best Buy or Circuit City), or may restrict distribution to

protect retailers' margins (e.g. "hot" toys exclusively available at Toy 'r Us).
A retail distribution strategy is driven by three inter-related objectives: broadening
market coverage, enlisting product support (from retailers) and containing channel

conflict (among retailers).


The primary objective of distribution strategy is toprovide sufficiently broad,
gap-free market coverage, i.e. being available in enough outlets so that

customers have convenient access for purchases.


Retailers are gatekeepers since they decide whether or not to carry products based
on their prospective retail profitability, considering factors such as:
- Gaps (versus duplication) in the retailer's product line assortment
- Track record (credibility) of the supplier
- Projected retail margins (initially and over time)
- Anticipated promotion support (e.g. advertising, displays, "deals")

Historically, manufacturers - especially big national brands - held the balance of


power over most retailers and could, more or less, force them to carry products

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and provide support. In the past couple of decades, though, the balance of power
has generally shifted to the retailers, largely due to retail consolidation (the big
have gotten bigger) and the emergence of power retailers like Wal-mart and Home
Depot.

The second retail distribution strategy objective is to enlist product support.

More specifically, a company needs to select and motivate partners who:

Maintain adequate inventories


Display the product in desirable locations (e.g. eye-level shelves, high traffic areas)
Advertise and promote (special displays and signing, discounted sales prices,
inclusion in flyers and ads)
Sell the product (educating customers, demonstrating the product, 'closing the sale')
Install and service the product

The specific support (level and type) that a product requires hinges primarily on
the product characteristics (simple or complex; high end or mass market; position
along the product life cycle).

At the most basic intuitive level, the required support depends on whether a
product is "bought" (well known and demanded), or needs to be "sold"
(unrecognized product, brand or need). The former benefit from distribution that
is broad and deep, and don't require extensive in-store support. The latter are best
served by more selective distribution through specialty stores with highly
motivated, well-trained salespeople who can educate customers and close sales.

The third retail distribution strategy objective is to contain channel conflict.

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Analysis On Parag Distribution System

Given that their prospective profitability is the primary reason that retailers carry
products, projected profit margins and sales volume are critical variables.

On a macro basis, a product's inherent market value drives customer demand, and
largely determines aggregate sales volume and average pricing.

On a more micro basis (i.e. from the perspective of a specific retailer), sales are a
share of the total sales volume in a specific trading area and margins are a direct
function of prevailing (or lowest prices) offered by competing retailers.

Horizontal channel conflict is increasingly common in real life as companies


attempt to reach different customer segments by utilizing multiple distribution
channels (including direct from the manufacturer).

More specifically, when multiple channels are employed and distribution intensity
increases, three profit threats may confront a retailer:

Sales cannibalization: when a retailer loses sales to a newly authorized retailer


Margin dilution: when aggressive retail competition drives retail prices down

Customer diversion: when customers get sold by one retailer,


but buy from another offering lower prices.

So, the dominating distribution objective, broadening market coverage (i.e.


increasing customers' convenience), is somewhat at odds with the other two
objectives - enlisting product support and avoiding channel conflict. While a

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Analysis On Parag Distribution System

company may want broad rather than selective distribution, and may want to
attack different market segments though multiple channels of distribution, the
stark reality is that intensive hybrid distribution may, if not very carefully
managed, result in horizontal channel conflict, deteriorating retail economics, and
eventual loss of critical retail-level product support.

Once the retail distribution strategy is set, the management focus shifts to
distribution logistics (i.e. moving goods from the manufacturer, through any
intermediaries, to the customer).

To achieve its strategic distribution objectives, a company may choose to use few
layers of intermediaries (called short distribution channels), or relatively many
layers (long distribution channels).

supporting the strategic objectives, refers to the storage and movement of goods,
information, and money between the manufacturer and the final customer.
Logistics is sometimes inappropriately viewed as an exclusive operations
function. In reality, marketing often has a major role in the day-to-day logistics
process with responsibilities ranging from sales forecasting and demand
management to inventory planning and the allocation of short supplies.

Specific distribution-related decisions include:

(1) the number of layers between the company and the customer (channel depth)

(2) the specific type of partners in each layer (e.g. wholesalers or distributors,
mass merchants or high-end specialty retailers)

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Analysis On Parag Distribution System

(3) the number of partners at each layer (channel breadth), and the geographic
placement of partners (location, density).

These strategic and logistical decisions frame the distribution channels (from a
marketing perspective) or downstream supply chain (from an operations
perspective) for a company's products.

More specifically, a company's distribution strategy is largely defined by


decisions on the number and type of customer interfaces. That is, order entry
points (where and how orders are placed) and fulfillment nodes (where and how
customers obtain finished goods).

For consumer products, the fulfillment approach is a retail distribution strategy


that can range from exclusive distribution though select retailers, or intensive
distribution through a multitude of stores.

For example, Coke seeks to be ubiquitous ("always within an arm's length") with
very broad distribution across markets via numerous outlets of many different
types (e.g. grocery and convenience stores, restaurants, vending machines).

At the other end of the continuum, some companies choose to distribute their
products through relatively few, geographically clustered specialty stores (e.g.
innovative, tech-based entertainment products - like TiVo -distributed through
electronics stores like Best Buy or Circuit City), or may restrict distribution to
protect retailers' margins (e.g. "hot" toys exclusively available at Toy 'r Us).

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Analysis On Parag Distribution System

A retail distribution strategy is driven by three inter-related objectives: broadening


market coverage, enlisting product support (from retailers) and containing channel
conflict (among retailers).

The primary objective of distribution strategy is toprovide sufficiently broad,


gap-free market coverage, i.e. being available in enough outlets so that
customers have convenient access for purchases.

Retailers are gatekeepers since they decide whether or not to carry products based
on their prospective retail profitability, considering factors such as:

- Gaps (versus duplication) in the retailer's product line assortment

- Track record (credibility) of the supplier

- Projected retail margins (initially and over time)

- Anticipated promotion support (e.g. advertising, displays, "deals")

- Compatibility of logistics infrastructures (location of facilities, information


systems)

- The supplier's market position (clout)

In part to defray initialization costs and mitigate risk (to the retailer), an
increasing number of retailers have instituted slotting fees, payments made to the
retailer whenever new products are adopted. Slotting fees are highly controversial
since, in essence, they erect de facto economic barriers excluding all but the
biggest, most deep-pocketed suppliers.

The second retail distribution strategy objective is to enlist product support.

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Analysis On Parag Distribution System

More specifically, a company needs to select and motivate partners who:

(a) Maintain adequate inventories

(b) Display the product in desirable locations (e.g. eye-level shelves, high traffic
areas)

(c) Advertise and promote (special displays and signing, discounted sales prices,
inclusion in flyers and ads)

(d) Sell the product (educating customers, demonstrating the product, 'closing the
sale')

(e) Install and service the product

The specific support (level and type) that a product requires hinges primarily on
the product characteristics (simple or complex; high end or mass market; position
along the product life cycle).

At the most basic intuitive level, the required support depends on whether a
product is "bought" (well known and demanded), or needs to be "sold"
(unrecognized product, brand or need). The former benefit from distribution that
is broad and deep, and don't require extensive in-store support. The latter are best
served by more selective distribution through specialty stores with highly
motivated, well-trained salespeople who can educate customers and close sales.

.
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Analysis On Parag Distribution System

The third retail distribution strategy objective is to contain channel conflict.

Given that their prospective profitability is the primary reason that retailers carry
products, projected profit margins and sales volume are critical variables.

On a macro basis, a product's inherent market value drives customer demand, and largely
determines aggregate sales volume and average pricing.

On a more micro basis (i.e. from the perspective of a specific retailer), sales are a share of
the total sales volume in a specific trading area and margins are a direct function of
prevailing (or lowest prices) offered by competing retailers.

The implication is that the intensity of competition among retailers is a major driver of
retailer support (or lack thereof). Invariably, as a product's distribution base is broadened
(more accounts, stores, and types of stores are added), the likelihood of horizontal
channel conflict increases. In most instances, horizontal channel conflict boils down to a
question of economics: retailer profits are pushed below acceptable levels as a result of
direct or indirect competitive behavior. As their economics deteriorate, retailers' support
for a product understandably deceases.

Horizontal channel conflict is increasingly common in real life as companies attempt to


reach different customer segments by utilizing multiple distribution channels (including
direct from the manufacturer).

More specifically, when multiple channels are employed and distribution intensity
increases, three profit threats may confront a retailer:

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Analysis On Parag Distribution System

(1) Sales cannibalization: when a retailer loses sales to a newly authorized retailer

(2) Margin dilution: when aggressive retail competition drives retail prices down

(3) Customer diversion: when customers get sold by one retailer,


but buy from another offering lower prices.

So, the dominating distribution objective, broadening market coverage (i.e. increasing
customers' convenience), is somewhat at odds with the other two objectives - enlisting
product support and avoiding channel conflict. While a company may want broad rather
than selective distribution, and may want to attack different market segments though
multiple channels of distribution, the stark reality is that intensive hybrid distribution
may, if not very carefully managed, result in horizontal channel conflict, deteriorating
retail economics, and eventual loss of critical retail-level product support.

Once the retail distribution strategy is set, the management focus shifts to distribution
logistics (i.e. moving goods from the manufacturer, through any intermediaries, to the
customer).

To achieve its strategic distribution objectives, a company may choose to use few layers
of intermediaries (called short distribution channels), or relatively many layers (long
distribution channels).

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Analysis On Parag Distribution System

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Analysis On Parag Distribution System

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Analysis On Parag Distribution System

DARIY COOPRATIVES
Dairy cooperative accounts for the major share of processed liquid milk market in the
country. Milk in processed and markets by 170 milk producers cooperative union which
federate in to 15 states cooperative milk marketing Federation.
Over the year, brand a created by cooperative have become synonymous with quality and
value. Brand and like Amul (GCMMF) VIJAYA (AP) Verka (Panjab, Saras
(Rajesthan) ,Nandini (Karnatka) milma Kerla (kolhapur )are among those that have
earned customer confidence

Some of the major Dairy Cooperative federation includes


Andhra Pradesh Dairy Development Cooperative Federation Ltd
MADHAYA Pradesh Cooperative milk
Bihar State GujaratDevelopment Cooperative Federation Ltd
Haryana Development Cooperative Federation Ltd
Karnataka Development Cooperative Federation Ltd
Gujarat Development Cooperative Federation Ltd

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MILK CO-OPERATIVE IN UTTAR PRADESH


Agar Dugdh Utpadak sahkari Sangh Ltd.Agra
Aligardh Dugdh Utpadak sahkari Sangh Ltd. Aligardh
Allahabad Dugdh Utpadak sahkari Sangh Ltd Allahabad
Azamgarh Dugdh Utpadak sahkari Sangh Ltd. Azamgargh
Ballia Dugdh Utpadak sahkari Sangh Ltd. Ballia
Banda Dugdh Dugdh Utpadak sahkari Sangh Ltd ,Banda
Barabanki Dugdh Utpadak sahkari Sangh Ltd .Barabanki
Etowah Dugdh Utpadak sahkari Sangh Ltd. Etowah
Farukhabad Dugdh Utpadak sahkari Sangh Ltd. Farukhabad.
Ferozabad Dugdh Utpadak sahkari Sangh Ltd, Ferozabad.
Ghaziabad Dugdh Utpadak sahkari Sangh Ltd, Ghaziabad.
Gorakhpur Dugdh Utpadak sahkari Sangh Ltd, Gorakhpur.
Hardoi Dugdh Utpadak sahkari Sangh Ltd, Hardoi.
Jaunpur Dugdh Utpadak sahkari Sangh Ltd, Jaunpur.
Kanpur Dugdh Utpadak sahkari Sangh Ltd,Kanpur
Lucknow Dugdh Utpadak sahkari Sangh Ltd.Lucknow
Manipuri Dugdh Utpadak sahkari Sangh Ltd, Manipur.
Matura Dugdh Utpadak sahkari Sangh Ltd, Mathura.
Mirzapur Dugdh Utpadak sahkari Sangh Ltd, Merzapura.
Moradabad Dugdh Utpadak sahkari Sangh Ltd, Moradabad.

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Analysis On Parag Distribution System

Muzaffarnagar Dugdh Utpadak sahkari Sangh Ltd, Muzaffarnagar.


Pratapgarh Dugdh Utpadak sahkari Sangh Ltd,Pratapgarh
Rea Bareli Dugdh Utpadak sahkari Sangh Ltd ,Rae Bareli
Saharanpur Dugdh Utpadak sahkari Sangh Ltd ,Saharanpur
Sitapur Dugdh Utpadak sahkari Sangh Ltd,Sitapur
Sultanpur Dugdh Utpadak sahkari Sangh Ltd, Sultanpur
Unnao Dugdh Utpadak sahkari Sangh Ltd,Unnao
Varanasi Dugdh Utpadak sahkari Sangh Ltd,Varanasi

INFRASTRUCTURE (PLANT&MACHINERY)
The organization is equipped with sophisticated plants & machinery of manufactures
Ghee, butter, milk powder and other dairy product of a big scale.
PCDFhas also distinction of having the most sophisticated &fully computerized first
vertical dairy in India. This is state of the art project with the various selection located in
the basement of three floors of the buildings .A well-equipped central quality control
laboratory is at the luck now with cheeks the organ optic chemical &microbiological
quality of the products.

Marketing
The federation of marketing milk and milk products, under the common brand name
PARAG.

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Analysis On Parag Distribution System

The client include several prestigious institute in U.P Delhi beside the Indian army .The
sale network is separate though out northern India .All though PCDF be- -live that a
satisfied customer is their best advertisement.

OTHER PROGRAMMES
Due to its reputations., efficiency, wide network and quality manpower, PCDF is
currently implementing following developments and promotion programmers supported
by central state government
I.
II.
III.
IV.

Integrated mini dairy project. (IMDP)


Women dairy project (WDP)
Rural family welfare project (RFWP)
Diversified agriculture support project (DASP)

These programmers have won many laurels for PCD Fadding further its reputation.
PCDFs real sense of pride lies in the fact that its farmer member are heading surely and
steadily toward prospers future and the knowledge that its consumer reaffirm their in
PARAG ,YEAR after .It is this context ,that PCDFs success is to be measured.

WELEFARE PROGRAMMES IN LMU


In LMU welfare departments is a sub divided of Personal & Administration
departments .In labor welfare is the head of this sub- division whose work is the
implements welfare programme to solve out grievance of worker and the maintained
harmonious relationship between and management.

HR POLICIES;
There are also welfare scheme for the employees of the union

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Scholarship and financial assistance for the child of the employees.

45

Analysis On Parag Distribution System

Financial assistance in the case of accident if the employee the children


of the class Third &class fourth employees of the for dation gete
scholarship and financial of the Rs 50 per month ,if they get 70% of
more the high school and intermediate examination, while getting 70 %
or more in graduate they will get Rs 100scholarship and for professional
course student prevision of Rs500 scholarship is there.

A personal accident welfare found was constituted for providing


financial assistance for family of the employees of the federation ,who
has last any part of body in accident. This scheme is known as PAWS
AS-1985.the get assistance to Rs5.26L in cash of accident lost .The
scheme does not include the case of suicides ,accident due to intension
of crime. Every employees has to contributes 10per month to the found.

In the case of sudden death of any employee during this service which
period ,one of his dependent is given employee welfare scheme, there is
provision to provide the employee with aid in case of accident,
Cancer ,Heart attack Paralysis etc.

FUTURE PLANS FOR 2012-13


The targets for the current year, set by PCDF are the follows
Working committee;
By the end of the year 2010-11, 415 milk cooperative committees were in existence.
Target is raise up to 450 committees.
Milk holding:
In the year of 2010-11the average milk handing was 29850 kg per day while the target the
year 2011-12 is 3700Kg.
Distribution of liquid milk:
As againsed the year 2010-11 where the distributed of liquid milk was 90,000 liter per
day and the 2011-12 the target is one lakh liter per day.
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Analysis On Parag Distribution System

PRODUCT OF THE COMPANY


1. LIQUID MILK :
a) Parag Gold (full cream milk)
b) Parag Taaza (toned)
c) Parag liter (skimmed milk)
2) Paneer
3) Butter
4) Parag ghee
5) Parag skimmed milk power
6) Parag Peda
7) Parag flavored milk
8) Parag mattha
9) Parag chawal kheer
10) Parag channakheer
11) Parag basen laddoo

INDUSTRIAL MARKETING MIX


The establishment or once objective and preparation a strategic marketing plan which is
cooperative the various appropriate method or reaching these object.
o Product quality
o Product development
o Product price
o Product range
o Sales promotion
o After sale service
o Advertising
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Analysis On Parag Distribution System

o Market research
o Stock level
o Unit of sale
o Distribution arrangements
o Cash discount
o Packaging
o Sampling

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COMPARATIVE SALE OF MILK PRODUCTS 2011-12


Growth rate
s.no

Product name

Target

Achieved

Percent

Achievement
of

on the base

previous of previous

219592

244550

111%

year
183230

Year
+33

Ghee

Butter

509415

404055

79%

422670

_44

Panner

99178

93805

95%

78110

+20

Peda

52435

7225

115

44165

36

Mattha

23.77

15.55

65

20.96

25

Flavored milk

85.67

58.40

72

73.84

55

Dhai

24.92

22.05

90

9.25

116

Kheer

6.48

7.13

110

5.65

28

Bassanladdu

17861

5.73

126

15092

48

10

Chach

30161

22484

158

312

83

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OTHER PROGAMMERS RELATED TO


MARKETING
YEAR - 2012

POPULATION OF LUCKNOW
Demand of milk
Demand of Parag milk
Market share of Parag
Total rout of milk sale

25 Lakh
6 lakh liter per day
141.30,000 per day
29%
Packed milk -47
Loose milk-.

Concessionary employment:
Customer Relation
Traveling exp. per liter
Going of distribution

160
10,000
10
10

157
14218
37.5
15

98
142
115

DISTRIBUTION CHANNEL
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Distribution channel is an operation or series of operations, which brings produced or


manufacture goods into the hands of the final consumer or user.
A channel of distribution is a chain through which a producer transfers the
ownership of his goods and services to his consumers. Channels of distribution are also
as middleman, agents of distribution and distribution is abridge to cover the gap between
the manufactures and consumers.
Types of Distribution
A -Direct Distribution Method
Under direct distribution method , the manufacture of the producer sells their
products. Under their own management.
B Indirect distribution method
Under this method a producer of manufacture sells his products to consumer
through the wholesaler and retailers.
Milk is a perishable item. It is required to be distributed immediately after its production
and packaging hence milk should be distributed accurately. Parag Milk and milk product
are made available to the consumer both in the morning and evening. this is done through
effective distribution channels, which supplies the milk

PROCESS
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Analysis On Parag Distribution System

PROCEDURE FOR DISPATCH & DISTRIBUTION OF PACKED MILK AND


LOOSE MILK IN CANS FOR LOCAL SALE

PURPOSE
Timely distribution of milk to retailers in safe condition.

SCOPE
All types of packed milk in Poly-pack & loose milk in cans for
distribution in the local market.

RESPONSIBILITY
a) Manager Marketing
b) Sales Supervisor/ Sales Representative
PROCEDURE

4.1 According to coverage planning, survey of the particular area is conducted by


marketing staff considering the consumption potential and civic status of that area.
Following aspects are kept for selection of retail outlet:
a. It is preferred that the retail outlets in question should have refrigeration facility i.e.
availability of either deep freeze or domestic fridge, so that the quality of milk could
be maintained till the actual sale occurs.
a. A selected locality, where we have decided to open a retail outlet, may have no shop
available with a fridge or there may be no shop at all, and demand of milk may be
there, in such cases, considering the demand and the selling time i.e. within 2 hours
of delivery of milk, an agency for sale of milk is given to the aspirant.
b. Aspirant applies to us on plain paper and after verification, by concerned route
supervisor/Sales representative/Manager (Marketing), a duly prescribed application

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format is got filled (with two securities and two photographs) and then agency for
sales is granted by Manager (Marketing).
c. A security amount of Rs.500/-(Five hundred) minimum (Refundable) for selling
packed milk & Rs. 1000/- (one thousand) minimum for loose milk and membership
fee of Rs. 100/-(one hundred) (Non-Refundable) is taken from the retailers in both
the cases.

4.2 Supply of liquid milk in poly-pack in city is being done daily in two shifts i.e.
morning & evening but products are supplied to the retailers only with evening milk
supply.
4.3 Distribution of milk and milk products to the retailers, approx. 500 in number, in
MEERUT city, is organized through seven to eight supply routes, through hired
transporter.
4.4 Demand of milk and milk products for both the supplies, the same evening and next
morning, is collected by the transporter of respective route on demand/supply chart
daily in the morning at the time of taking back the empty crates/ cans and the sales
proceeds, from milk selling agent/ retailers.
IV.5

Having collected the demand as well as sales proceeds, the transporters

return to dairy by 10.00 AM and hand-over to the empty crates to sachet section.
Then they deposit cash in the cash section on the basis of stock transfer voucher
having full details of type/Quantity milk as well as the number of crates/cans,
duly issued by sachet section at time of giving milk to the transporter. Then the
route wise demand for same days evening & next day morning is submitted to
Marketing section by transporter.

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IV.6

Marketing section consolidates the complete route/vehicle wise demand

for both meetings and sends the same to sachet/products section daily by
11.30AM.

4.7 For loading the milk, supply vehicles reporting time schedule is as under:WINTER SCHEDULE
EVENING
MORNING
Vehicle reporting time at
2.00 to 3.00
1.00 to2.00 PM 1.00 to2.00 AM 12.00 to1.00 AM
main gate
AM
Last vehicle out time
3.30 PM
3.00 AM
2.30 PM
4.00 AM
PARTICULARS

SUMMER SCHEDULE
EVENING
MORNING

4.8 Morning supplies to all agents on all routes are completed by 5.45 AM in summer and
6.30 AM in winter. Like-wise in summer, evening supply reaches the last point by
5.30 PM.
4.9 In the morning after finishing the supply at last point, vehicle waits for 1 to 1 hours
and then starts collecting empty crates and sale proceeds.
4.10 Sales staff is allotted routes to supervise/promote the sale of liquid milk/consumer
contact etc. They start working on respective routes from 5.15 AM to 9.15 AM and
again from 4.00 PM to 7.00 PM.
4.11 To maintain the quality of milk under transit from dairy dock to last sales point,
transporter is provided with a time schedule in which the supply time from first
point to last point is clearly mentioned.
4.12 It is the sole responsibility of the transporter to deliver/ supply milk and milk
products to the retailers in time. If delays occur without sufficient reason there are
penalty clauses in the agreement on which they are getting penalized.
4.13 The agreement between the dairy and the transporter engaged in liquid milk supplies
covers all necessary action to be taken under unforeseen circumstances, like accident
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of the vehicle, loot/arson, riot etc. If the vehicle breaks down in midway with milk
left for distribution, then there are provision clauses, so that alternate arrangement is
immediately done and milk is delivered/ distributed on scheduled time.
4.14 Marketing section also receives a copy of route wise / vehicle wise challan issued by
sachet section in both time supply with the details of type of milk/quantity/crates etc.
On the basis of the above the sale records are maintained in the marketing section.
4.15 The copy of the challan after proper entries in the marketing books is being sent to
finance section for maintaining party ledger in terms of quantity dispatched & sale
proceeds deposited. Thus accounts are settled in finance section and cross-checking
is done time to time by marketing section. The Stock transfer voucher is entered in
Route wise Milk and Milk Product Distribution Register.
5.

REFERENCES:

A.

Stock transfer voucher

B.

Demand/supply chart

C.

Milk Indent chart

D.

Route wise Milk and Milk Product Distribution Register

E.

Daily Milk and Milk Product Sale Register

F.

Format for application cum allotment order for Commission agency.

RECORDS:
A.

Stock transfer voucher

B.

Demand/supply chart

C.

Milk Indent chart

D.

Route wise Milk and Milk Product Distribution Register

E.

Daily Milk and Milk Product Sale Register

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PRODUCT PROFILE
Milk & Milk Products
Butter
Butter offered by us is known for its features such as its very pure, fresh and rich in taste
and is widely demanded by our clients all across the country. To ensure their original taste
and quality, we provide these in proper packaging.
Curd
Curd offered by us is prepared from purest, freshest pasteurized & homogenized milk and
it is free from any added sugar or preservative. It is stored with transportive refrigerated
condition. Our products are well known for their convenient use and fine quality and
hygienic build.
Ghee
We bring forth pure ghee that is made using high quality milk sourced from organically
reared farm animals. As a reputable organization our range meets the Agmark special
grade specification of Government of India.
Milk
It is also ideal for drinking straight from the pack for kids and adolescents who simply
love its creamy taste sans the inconvenient cream layer. The UHT treatment ensures zero
microbial activation, while preserving the maximum flavor, taste, and nutritional value.
Milk may be defined as the whole, fresh, clean, lacteal secretion obtained by the
complete milking of one or more healthy milch animals, excluding that obtained within
15 days before or 05 days after calving.
Milk, is an almost ideal food. It has high nutritive value. It supplies body-building
proteins, bone forming minerals and health giving vitamins and furnishes energy giving
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lactose and milk fat, besides supplying certain essential fatty acids. It contains the above
nutrients in an easily digestible and assimilable form. All these properties make milk an
important food for pregnant mothers, growing children adolescents, adults etc.
Energy Value:
Milk Fat

9.3 c/g

Milk Protein

4.1 c/g

Lactose

4.1 c/g

The Energy value of milk will vary with its consumption. On average cow milk furnishes
75C/100gm and buffalo milk 100C/100gm.

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QUALITY TEST FOR MILK

Cleanness

Foreign particles

Soda test

Alcohol test(for freshness)

Urea Test

Glucose

Sugar

Salt

Hydrogen Peroxide

Formaline

Starch

Mineral Oil test

Phosphatase test ( for proper pasteurization of milk to ensure 100 % death of


disease causing bacteria)

Milk fat

Milk S.N.F.( Solid not fat)

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SWOT ANALYSIS OF INDIANDAIRY INDUSTRY


Strength
There are following major strength of the traditional dairy products sector:

The mass appeal enjoyed by the wide variety of product.

The market for these products for exceeds that for western dairy product like milk
powder.

There operating margin are also much higher than the western products.

Weakness

Low advertisement of the other product

Milk consumed by worker

Trucks are not fully load

Complains are very high regard ding leakage sour of milk etc

Availability of Parag in other district is very low.

Awareness of Parag website is very low.

The preparation and market and marketing these of products is generally done by
always and that limits development in the sector.

The practice of inadequate hygiene is the preparation &handing of these products.

Opportunity
The expending business prospect provide by these product and their accompanying value
addition ,call for a though study of this sector I would facilities packed and increase in
product and marketing of hygienically prepared and property packed products to meet the
demand of a growing population has been demonstrated at the NDBS Sugam Dairy.
THREATS
Milk vender the un organized sector .Today milk vender is occupying the pride of place
in the industry.
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Organized dissemination of information about the harm that they are doing to the
producer and consumer should see a steady decline in their importance

CHAPTER III
DATA ANALYSIS & INTERPRETATAION

Report of agent survey


Haves meet of with around 200 seller of milk found the following information from the
agents answer of the relevant questionnaire. These chart made according to the found
data during summer training, for the only 100 questionnaire
.
NO. Of Agent (shop)
120

100

100
80

40

60
40
20
0
Parag

other

INTERPRETATION

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Here I have taken Sample size of agents is 100 to understand the total market share of
milk brand .we can see that shop Parag is more than other.

Sales of milk per day (crate )


800

790
790

780

770

760

750
748

740
..
730

720

710...............
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Parag

other

INTERPRETATION
Sale of milk per day of parag is 790 crates per day and sale of other milk 748 crate per
day sales of

INTERPRETATION
I found that availability of parag milk is sufficient according to demand and we can say
that availability of milk is 75%. In Lucknow.

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100
90
80
70
60
50
40
30
20
10
0.

INTERPRETATION
I found that the agent originally 80% belong to Parag instead of others.

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PRODUCT QUALITY OF PARAG MILK

100
90
80
70
60
50..
48.
40
302426
20
102
0.

INTERPRETATION
24% BAD 48%AVERGE 26% GOOD &2%EXCELLENTS
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PRODUCT DELIVERY TIME

54
5352.3
52..
51
50
49
4847.6
47
46
45
44

INTERPRETATION
Product delivery time 52% of the agents say that delivery time of product is good, and
48% agents say that is bad.

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Sales of other products of parag

90
80
70
60
50
40
30
20
10
0
Curd

Mattha

Ghee

Butter

Panner

All product

INTERPRETATION
Sales of other product of parag in shops: Curd is 78%, Mattha 70%, Ghee 37%, Butter
78%, Panner 33%, All product around 8% shop.

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SUPERVISOR VISITS

60

50

40

30

20

10

0.
Never

sometime

offen

cant say

INTERPRETATION
43% agents say that supervisor visit is never, are 49% agent says some time.

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BEHAVIOUR OF DRIVE

70
60
50
40
30
20
10
0..
Bad

Avg.

Good

INTERPRETATION
Behavior of Drive is Good of the agents say that delivery time of product is good, and
Others agents say that is bad.

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Quality of Parag milk

60
50

46

40
30

26
23

20
10
0

INTERPRETATION
Quality of parag milk 23% people say that is quality is bad. 46% say that average and
26% good.
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REPORT OF CUSTOMER

7066
6048
50
40

33

30
.20...19........................................................................................................................
..10
0..
0-5

5-15

15-30

30above

INTERPRETATION
19%are milk consumer come under 0-5age 33% consumer age is 05-15 48%&15-30 66%
30 above.

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PREFRENCE OF MILK

5047 .
45 .
40
40.35

30
25
2012.5
15
10
0

parag

other

loose

INTERPRETATION
Inspite of very high sale of Parag ther is large no of customers who are buying loose milk
from Locale Dairies
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. Number of family member?


a

Two (4)

Three(8)

Four (36)

More than four(52)

60
50
40
30
20
10
0

INTERPRETATION
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In Lucknow the no. family members are more than 4 are very high hence the
consumption of milk is also very high

Family income?
1

<100000(41)

100000-300000(52)

300000-500000(7)

Above 500000(0 )

60
50
40
30
20
10
0

INTERPRETATION
Annual Income of Family is in Large No in the category of less than Rs 1,00,000.00
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. Who takes decision for purchase of milk?


1

Father (32)

Mother(59)

kids (9)

70
60
50
40
30
20
10
0

INTERPRETATION
For purchase of Milk, the decision is generally taken by the Mother
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Consumption of the milk in your family in liters.


1
2
3
4

One litre( 61)


Two litres(21)
Three litres(11)
More than three litres(7)

70
60
50
40
30
20
10
0

INTERPRETATION
Maximum Family use 1Ltr per Day

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Which type of the milk do you take?


1

Packed(38)

Loose(62)

70
60
50
40
30
20
10
0

INTERPRETATION
Maximum family use loose milk purchased from local dairy farms

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. If loose then
1

Parag ATM (23)

Milkman (39)

45
40
35
30
25
20
15
10
5
0

INTERPRETATION
Loose milk also purchase from Parag ATM but it is lesser in compare to local dairies

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If packed, which brand do you take?


1

Parag(14)

Amul(23)

Mamta(0)

Others(0)

25

20

15

10

INTERPRETATION
Generally People are purchasing packed milk( Tetra Pack ) of Amul instead of others.
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Which type of milk do you take?


1

Gold(orannge)(20)

Tonned(blue)(16)

Lite(violet)(2)

other(0)

25

20

15

10

INTERPRETATION
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Maximum people are using Gold Milk of Parag as it is with Fat only

How do you find Parags?


A Quality:
1. Good (44)
2. Average(47 )
3. Bad( 9 )

50
45
40
35
30
25
20
15
10
5
0

INTERPRETATION
Maximu People says It is very good and easy available
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Price:
1. Low (13)
2. Average( 56 )
3. High( 31)

60
50
40
30
20
10
0

INTERPRETATION
Price of Milk is average but it may be increase in future
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Availability:
1. Easily( 67 )
2. Not easily(33)

80
70
60
50
40
30
20
10
0

INTERPRETATION
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Availability of Parag Milk is Ver easy as it may be find in any local shop

Do you change one brand to other?


1

Yes (36)

No (64)

80
70
60
50
40
30
20
10
0

INTERPRETATION
As the people are satisfied with parag hence maximum people are not interested in
change the brand of milk

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Do you known about pasteurization? It is:


1

Boiling milk (40)

Drinking milk (22)

Destroying Bacteria from milk (38 )

45
40
35
30
25
20
15
10
5
0

INTERPRETATION
Peol are knowing that the pasteurization means boiling milk
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Do you recognize Parag Logo?


1

Yes(67)

No(33)

80
70
60
50
40
30
20
10
0

INTERPRETATION
Out of 100 people, the 67 persons are know the logo Parag

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FINDINGS
Following are the main findings of the study:
1. 59% purchasing decisions are made by Mothers.
2. 61% families need one liter milk.
3. 38% respondents purchase packed milk.
4. 14% respondents Parag milk.
5. 20% purchase Gold (orange milk).
6. 44% respondents say quality of Parag is good.
7. 31% respondents say price of Parag is high.
8. 33% respondents say parag is not easily available.
9. 36% respondents can easily change the brand.
10. Only 38% respondents know that what is pasteurization?
11. 67% respondents recognize Parag Logo.
12. 65% respondents have good experience with parag.

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CHAPTER-IV

SUGGESTIONS
1. Delivery Schedule should be Properly Maintain, i.e. its Indigenous Products
Should be Available at all Stores of the City.
2. Delivery Complaints should be undertaken more quickly.

3. Behavior of Staff/Team Involve in Distribution, Feedback from Retailer &


Consumer is Essential.
4. Quality Standard should keep Maintain.

5. Company should make a meeting time to time with dealers and launches different
Gifts & Incentives Scheme to Promote the Sale of Products.
6. Advertisement can also be done on the Packing of Milk & Milk Products without
making extra over head expenditures for example: on Table Butter & Ghee Poly
Pack at blank space available.

7. Company should start Publicity Campaign for promote and awareness of its
indigenous products to the ultimate consumer.

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8. Company should also arrange the Advertisement Fund in its Financial Statement
for Optical & Display Advertisement like Mother Dairy &Amul advertisement
on T.V.

9. Company can also prepare their own retail outlets for milk & milk products and
sell the products, this may also help to generate employment in the city as well as
Maximize Companies Profits, like Mother Dairy Booths in New Delhi.
10. Introduce youth talent to compete with rivalries to change threat into opportunity
and weakness into strength.
Other Suggestions and recommendations:
1. Parag should change the packing of as it is not attractive and do not seems to
be standardand hygienic.
2. Parag should make 24hour availability of milk In the market in order
to improve their Sales.
3. Parag should offer home delivery services to Increase sales
4. Parag milk should be kept available at every shop.
5. Parag should offer refrigerators On installments to retailers.
6. Parag should give emphasis on Punctuality and regularity in the Supply of
milk
7. Parag offer promotional schemes to retailers as is done by Amul.
8. Parag should offer some extra benefit to his customer and supplier.
9. Parag should provide chilling equipments to their retailers at low
cost for storing their products.
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10. Parag should give emphasis on Punctuality and regularity in the Supply of
milk.
11. Parag offer promotional schemes to retailers as free sample, gift packs etc.
12. The organization should proper arrangement of milk at the time of festivals
etc.
13. Parag should provide home delivery facility to their consumers.
14. Parag should launch some new products also.
15. Parag should emphasize on provide better quality than others instead
of increasing the sale.
16. Parag should increase the number of retail shops, where the retail
shops of parag is notavailable.
17. Parag should emphasize on advertisement also.

LIMITATIONS OF THE STUDY


Limitations of study and problems encountered
N ot h in g in th i s u ni ve rs e is fr ee f ro m Li mi t at i on s a nd p re s e nt p roj ec t is
n ot a n acceptation to it. Due to certain restrictions on the part of potential
customers as well asactual customers and Suppressed and based responses from
them ,appropriate Figure for relevant data and their interpretation Precisely
this has been my personal experience while Carrying out the present study.
Some of the limitations I found and difficulties encountered can be enumerated
as under:
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Annual reports and journals in the company was not readily available. Due to time and
budgetary constraint ,the sample size was restricted. The salesmen at the outlets showed
their discontent with the tight schedule. Most of the retail respondents showed their
discontent with the company for its unsystematic distribution, replacement, short
supply ,incentives, margin and so they were reluctant to talk about the company.
People of the region were not conscious about the survey, so they were
not much supportive.
Near about 30% population of the city takes the service of servants to bring their
milk from market and reason for their brand selection was not known.
M an y pe op l e d o no t kn ow t he ms e lv es w h y t he y u s e a n y pa rt i cu l ar
b ra nd as th e ir answer was we use brand because we like it so
the actual reason behind their l ik i ng w as n ot co nf ir med . M an y
r et a i l er s do n ot li ke to in t er a c t b ec au s e of t he i r business. People
are not interested to fill questionnaire as they think it wastage of time,
this is again because of less scope of research in India.

CHAPTER-V
CONCLUSION
Today Parag is a well known Industry in Milk Selling in U.P., every Consumer & Every
Retailer is aware about Parag Poly-Pack Milk.
Consumer are willing to buy the Parag Indigenous Product and they show Interest in
Parag Brand, but due to non-regular availability of their existing products they think
to buy another company product, In Case of Ghee, Table Butter, Paneer they first
prefer Parag Brand but in case of non-availability they go for another company
Product. i.e.
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In Ghee at the time of non-availability they go for Godhan, Krishna, or pack provide
by
Retailer etc.
In Table Butter they are likely to buy Amul Brand because it is regular available,
obviously few time ago it was Expensive @1.00 More than Parag, but Now Prices is
equal, also Parag Butter is not available at every shop-keeper.
Consumer are likely to buy Parag Product, and they trust on Parag.
But as per the market survey, awareness of Indigenous Products of Parag Brand is
too Little, thus in The First Part Consumer Prefer to Cable T.V. Advertisement/NewsPaper Advertisement for increasing the sale, Secondly they want readily availability
of Parag Indigenous Products, i.e. Regular Availability on shops, retail counters etc.

After detailed survey of Market I have reached to the following conclusions: -No doubt
PARAG holds a Market share of 85% in case of milk in Lucknow. But at the same time
PARAG should not forget that AMUL is very old company and has created an image of
trust and faith in the minds of people, and in the near future there could very strong
competition between the two companies, keeping that in view I suggest PARAG to adopt
following strategies to encounter AMUL sales:(1)PARAG has to maintain quality of the
milk and try to improve it.
The organization has to work in such a way so as to reduce the cost of milk which in turn
will result in reduction in price.
Price should be reduced at least one rupee as compared to AMUL.
The packing of the product should be more attractive as compared to AMUL, because
during survey it was observed that packing attracts many customers.
The milk should be available for twenty-four hours.
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PARAG should give their retailers Refrigerators on installments for which many of the
retailers are ready to pay; many of retailers are not keeping refrigerators because of
unavailability of refrigerators.
Possible to ensure 24hour milk availability in market, which not found in moat cases.
Steps should be taken to ensure 24hour availability of milk.
At many locations there is unavailability of milk, retailers should be motivated to work
with parag.
Other, parag should also offer more verities.
Sales promotional measures Should be taken to cover up retailers, because during survey
it was observed that many customers use milk which is available at their nearest shop
irrespective of brand.
The poly bags used by parag are less attractive and many written things are invisible,as
many

customers

complained

that

the

poly

bags

used

by

parag

seems

unstandard,unsecured and unhygenic. therefore parag should mostly change packaging of


milk
Parag should also keep inviting complaints from retailers also And try to solve problems
faced by them.
Parag should adopt the home delivery system, because during survey most of
theCustomers suggested for home delivery of milk.

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BIBLIOGRAPHY
BOOKS REFERED:
1.
2.
3.
4.

Collis J & Hussey R, Business Research (Palgrave,2003).


Beri G C-Marketing Research (Tata McGraw-Hill),1993,2nd Edition.
Philip Kotler Marketing Management (Pearson Edition), 12th Edition.
Kothari C R Research Methodology (New Lucknow, Vikas Publication House).

NEWS PAPER:
1. Hindustan.
2. Times of India.
3. Dainik Jagaran.
WEBSITE:
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1. www. Indiandairy.com
2. www.amulindia.com
3. www.pcdf.com
4. www.webindia123.com

APPENDICES
QUESTIONNAIRE
I am MAYANKAR SINGH pursuing MBA from SHERWOOD COLLEGE OF
MANAGEMENT Lucknow. As a part of the curriculum I am doing research on
ANALYSIS ON PARAG DISTRIBUTION SYSTEM LUCKNOW PRODUCERS
COOPRATIVE MILK UNION LTD. Kindly help me in the same by filling the
Questionnaire. Your response would be kept strictly confidential and would be used only
for academic research.
Name: ---------------------

Phone no: ----------------

Address: ----------------------Q1. Number of family member?


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a) Two( )

b) Three ( )

c) Four ( )

d) More than four ( )

Q2. Family income?


a)<100000( )

b) 100000-300000( ) c) 300000-500000( ) d) Above 500000( )

Q3. Who takes decision for purchase of milk?


a)Father ( )

b) Mother ( )

c) kids ( )

Q4. Consumption of the milk in your family in liters. ( )


Q5. Which type of the milk do you take?
a)Packed( )

b) Loose( )

Q6. If loose then


a)Source ( )

b) Price( )

Q7. If packed, which brand do you take?


a)Parag( )

b)Amul( )

c)Mamta( )

d) others

Q8. Which type of milk do you take?


a)Gold(orannge)( ) b) Tonned(blue)( ) c)Lite(violet)( )

d) other( )

Q9. How do you find Parags?


A)Quality:

a) Good ( )

b) Average( )

B)Price:

a) Low ( )

b) Average( )

C)Availability:

a) Easily( )

b) Not easily

c) Bad( )
c) High( )

Q10. Do you change one brand to other?


a) Yes ( )
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Q11. Do you known about pasteurization? It is:


a) Boiling milk ( )

b) Drinking milk ( ) c)Destroying Bacteria from milk ( )

Q12 Do you recognize Parag Logo?


a) Yes( )

b) No( )

Q13. Your experience with parag:


a) Good( )

b) Average( )

c) Bad( )

Q14. Your experience with Amul:


a) Good ( )

b) Average( )

c) Bad( )

Q15 Suggestions..

SAMPLE
INFORMATION
II. SAMPLE INFORMATION
Concept of sample:
Sample may be define as the selection of some part of an aggregate or totality on
the basis of which a judgment or inference about the aggregate or totality is made.
In other words, it is the process of obtaining information about an entire
population by examining only a part of it.
Basis of sampling:
Sampling is based on two premises. They are
1) There is such similarity among the elements in a population that a few of these
elements will adequately represent the characteristics of the total population.
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2) While the sample value (statistic) or some sample units may be more than the
population value (parameter), the sample value of the sample units may be
less than the population value.
Sample size:
We have sample of 100 respondents, which has included men and women.
Principle of sampling:
The process of sampling is based on the following important principle of
statistics:
1)

Law of Statistical Regularity


This is law states that a moderate large number of items selected at
random from a given population exhibit nearly the same composition and
characteristics of the population.

2)

Law of Inertia of large Numbers


This law states that, other things remaining the same, the larger the size of
the sample, the more accurate is the result obtained. This is nothing but a
corollary to the Law of Statistical Regularity.

3) Principle of persistence
If some items of the universe possess some specific characteristics, these
characteristics would be found in the sample also and even if the sample
size is increased or the population in increased, these characteristics would
be reflect in the same manner as in the previous case.
4) Principle of optimization
According to this principle, efforts should be made to get best possible or
optimum results both in terms of cost as well as efficiency. Larger the size
of the sample more would be the cost of conducting the survey, but better
would be the efficiency also. The size is maintained in such a way that the
results are optimized in term of cost and efficiency.
5) Principle of validity
A sample design is called valid only when the inferences drawn from it are
valid for the universe from which the sample has been taken. At a later
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stage we will arrive at a conclusion that in general, sample which is drawn


at random would be found to be more valid than those drawn otherwise.

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