Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ON
“A Study on Marketing Strategy of Parag
Milk in Lucknow City”
Towards partial fulfillment of
Master of Business Administration (MBA)
(Affiliated to Dr. A. P. J. Abdul Kalam Technical University, Lucknow)
Submitted by:
Rahul Kumar Singh
Roll No. 1705470061
M.B.A. 3rd Semester
SESSION 2017-2019
DEPARTMENT OF MANAGEMENT
i
ii
ACKNOWLEDGEMENT
Achievement is finding out what you would be then doing, what you have to do. The
higher the summit, the harder is the climb. The goal was fixed and we began with a
determined resolved and put in ceaseless sustained hard work. Greater challenge,
This project work, which is my first step in the field of professionalization, has been
would like to pay my sincere regards and thanks to those, who directed me at every
I take this opportunity to extend my sincere gratitude and profound obligation towards
and my Project report Faculty guide Dr. Meetu Pandey for giving me valuable
suggestions & guidance rendered to me throughout the Training project without their
encouragement and continuing support, this Research project would not have been
possible.
I am highly thankful to other faculty members whose able guidance in this project
iii
PREFACE
bears immense important in the field of Business Management. It offers the student to
explore the valuable treasure of experience and an exposure to real work culture
followed by the industries and thereby helping the students to bridge gap between the
understand the real world in which he has to work in future. The theories greatly
enhance our knowledge and provide opportunities to blend theoretical with the
practical knowledge where researcher gets familiar with certain aspect of research. I
iv
EXECUTIVE SUMMARY
policies which have been selected to be compared and about the product. Target
In today’s competitive world while entering in the market it is very necessary to have
good knowledge of the potential of a particular market. The information regarding the
activities of competitor’s existing in the market so that we can plan our each activity
according to that. It is also necessary to retain the existing customers apart from
attracting the new customers. The final outcome of the project is that the parameters
which hinder the sale of milk products of Parag Dairy are Price, Quality, Service and
Taste. Milk market is a totally unpredictable market and the organization should be
over-cautious of any complaints that come into milk as it includes the sentiments of a
mother for her kid and she would not prefer to give anything to her kid for which she
is not 100% satisfied. So the company should take every step possible to contain these
problems which in some way or the other affects the sale of Parag Dairy and its
retailers. It is concluded that Parag Dairy i.e. Single Toned milk has a high potential
in the market and it is the known to its customers and its acceptance is comparatively
higher as of other variants and competitors present in the market and they do not want
v
TABLE OF CONTENT
Certificate ii
Declaration iii
Acknowledgement iv
Preface v
Executive Summary vi
1. Introduction 1-27
8. Findings 83-85
9. Recommendations 86-87
vi
CHAPTER-1
INTRODUCTION
Page 1
INTRODUCTION
STRATEGY
Strategy is important because the resources available to achieve these goals are
achieve the goals, and mobilizing resources to execute the actions. A strategy
describes how the ends (goals) will be achieved by the means (resources).
A strategy is a unified, comprehensive and integrated plan that relates the strategic
that the basic objectives of the enterprise are achieved through its proper execution by
the organization.
Today the term strategy is used in business to describe how an organization is going
to achieve its overall objectives. Strategy is concerned with deciding which alternative
Page 2
Characteristics of Strategy
2. Universal Applicability
4. Strategy Review
Human Resources.
6. Allocation of Resources
7. Objective oriented
8. Related to Environment
9. Future Oriented
Page 3
STRATEGIC MANAGEMENT
objectives, developing policies and plans designed to achieve these objectives, and
then allocating resources to implement the plans. Strategic management is not static in
nature; the models often include a feedback loop to monitor execution and inform the
next round of planning. The systematic analysis of the factors associated with
customers and competitors (the internal environment) to provide the basis for
1) STRATEGY FORMULATION
Every organization whether small or big has certain objectives to be achieved. Each
of them has to prepare a broad plan for achieving those objectives. Strategy
formulation means defining the strategy in a very clear and simple word. Strategy
formulation means stating the outline and the features of a strategy. It simply means
preparing the action plan. Strategy is a pattern or plan that integrates an organization's
values, major goals, policies and action sequences into a cohesive whole. A well
unique and viable posture based on its relative internal competencies and
intelligent opponents.
Page 4
2) STRATEGY IMPLEMENTATION
all the activities and choices required for the execution of a strategic plan. It is the
process by which strategies and policies are put into action through the development
3) STRATEGY EVALUATION
The strategic management process results in decisions that can have significant long-
lasting consequences. Erroneous strategic decisions can inflict severe penalties and
can exceedingly difficult, if not impossible, to reverse. Most strategists agree, and
Page 5
BENEFITS OF STRATEGIC MANAGEMENT
utilization of resources.
7. SWOT Analysis – SWOT analysis helps the firm to keep pace with the
Page 6
LIMITATIONS OF STRATEGIC MANAGEMENT
effectively.
frustration or de-motivation
then even an exceptional good strategy may not produce desired results.
people with vision, expertise, commitment and dedication which are rarely
nature.
Page 7
FUNCTIONAL STRATEGIES
The strategies should give direction to the managers who will use and implement the
plans and policies the best and proper method, way to adopt it. The selection of the
best strategy alternative is not the end of strategy formulation. Policies define the
ground rule for implementation. A policy defines the area in which decisions are to be
made, but it does not give the decision. It spells out the sanctioned general direction
and areas to be followed. Functional strategies operate below the Strategic Business
unit or business level strategies. Functional strategies or functional plans and policies
are made within the guidelines set at higher levels. Plans are made to select a course
factors relevant to each function area have an impact on the choice of plans and
policies. Functional areas are traditionally divided into finance, marketing, production
Operational Strategies.
Page 8
TYPES OF FUNCTIONAL STRATEGIES
FUNCTIONAL STRATEGIES
HUMAN OPERATIONA
MARKETING FINANCE L/
RESOURCE
PRODUCTION
S
Training strategy
Promotion strategy
Transfer Strategy
2) Marketing Strategies
I. Product Strategy
Development of Product
Page 9
II. Pricing Strategy
Skimming
Penetration
3) Financial Strategy
Utilization of funds
4) Operational Strategy
Quality of products
Page 10
Research and development
MARKETING STRATEGY:
sustainable competitive advantage. Marketing strategy includes all basic and long-
term activities in the field of marketing that deal with the analysis of the strategic
initial situation of a company and the formulation, evaluation and selection of market-
oriented strategies and therefore contribute to the goals of the company and its
marketing objectives. Marketing strategies are dynamic and interactive. They are
Your well-developed marketing strategy will help you realise your business's goals
and build a strong reputation for your products. A good marketing strategy helps you
target your products and services to the people most likely to buy them. It should be
explains the position and role of your products and services in the market
Page 11
identifies the marketing tactics you will use
offerings
they are changing that will influence the firm, its product and its customer, and
distinct subsets of customers having similar needs and wants, each of which
of nothing?
Marketing strategy is sorting out who your audience actually is, and then finding out what
has meaning for them. What do they care about, and how does this relate to your offer?
Page 12
What message can you deliver that is both true and meets your consumer squarely at the
level of their needs? Marketing strategy is the process of uncovering messages that can be
heard. Marketing strategy allows you to answer the crucial question your offer must
address: “Why should I care?” To paraphrase Peter Drucker: Consumers do not buy what you
In marketing, there is strategy and there are tactics. A lot of marketing, in practice, is
preoccupied with what I call tactical experimentation. This is the act of throwing all
kinds of things out at the world or at broad demographic targets to see what works. As
you do this you are spending money, potentially lots of it. The idea in this method is
to do this until you find some marketing actions that work, and when you find them
This process often results in the classic Wanamaker dilemma—”Half the money I
spend on advertising is wasted; the trouble is I don’t know which half.” He was
Page 13
TYPES OF MARKEING STRATEGIES
There are four (4) main types of marketing strategies that businesses can apply in marketing
Under this strategy, there are three ways in which you could use it to establish
yourself as a market leader. The first way is to expand your total market. This is done
by applying strategies that will increase the numbers of consumers using your product
or services. To lead you must find new uses of existing products or targeting a new
market. In identifying new markets, you might have to source consumers in locations
Defending the market share you are in control of is the second strategy. The most
The third strategy is to expand your market share. To expand your market share you
The market challenger marketing strategy means that you research and identify minor
unmet needs that you believe your business can cater for competitively. There is little or no
competition here, and it makes it easy to establish yourself in the market. Challengers use
Page 14
3. Market Niche Marketing Strategy
Having a market niche means that your market is differentiated into fine tuned segments.
The niches make it easier to address the need of consumers in each of the market
niches. This is a fundamental type of marketing strategy as you are able to address the
differing preferences of diverse consumers as well as moving with current trends in the
market. Diversifying the market will enable you to reach out to a wider market.
The market follower depend waits for his competitors to identify markets and carry out
weaknesses and improve on them. This marketing strategy saves you on cost arising from
having to carry out research because you only have to work on your competitors
Page 15
Some more types of Marketing Strategies
largely attributed to the performance of the marketing. Therefore there must be suitable
strategies
1. PRODUCT STRATEGY
Product Line/Mix
products to face the competition in the market and to meet the needs and wants
of the customers.
Page 16
2. PRICING STRATEGY
While fixing prices, a firm may consider several factors such as cost of the
product, demand for the product, competition in the market, the nature of product,
High prices are charged in order to earn high profit margins. A firm may
follow either –
Rapid skimming - where high prices are charged and there is heavy
promotion.
Slow skimming – where high prices are charged and there is low promotion.
Low price are charged in order to capture a good market share. A firm may
follow either –
Rapid Penetration – where low prices are charge and there is heavy
promotion.
Slow Penetration - where low prices are charge and there is low promotion.
There are several other pricing strategies such as – follow the leader pricing.
3. PROMOTION STRATEGY
Page 17
Advertising Strategy
wise.
advertising, consumers.
periods.
o Products or brands and the market areas which needs to be given more focus
for sales.
Publicity
company via the media. Therefore a firm needs to frame proper publicity
strategy in respect of -
Page 18
o The relationships with various media people,
Personal selling is a promotional method in which one party (e.g., salesperson) uses
skills and techniques for building personal relationships with another party (e.g.,
involved in a purchase decision) that results in both parties obtaining value. It plays
industrial goods.
Marketing research is "the process or set of processes that links the consumers,
customers, and end users to the marketer through information. It is the systematic
gathering, recording, and analysis of qualitative and quantitative data about issues
o The type of marketing research such as sales research, product research, consumer
Page 19
o The amount of funds to be invested in marketing research
4. DISTRIBUTION STRATEGY
consumer durables so that they are familiar with the features and operations of
the product.
Page 20
BENEFITS/ADVANTAGES OF ADOPTING MARKETING
STRATEGIES
This means business owners can create a marketing plan that they are more
comfortable with and take advantage of marketing methods that are best for their
success. This is all possible because marketing saves time and helps business owners
to define their product and let potential consumers know they exist.
Marketing strategies helps company to choose the best possible strategy and
implement in a very effective way which will help to increase sale of product. Proper
marketing strategies help to expand the business which results into great profit and
capture a huge place in market which would be very difficult for small business to
2. Increase in Profit
organisational objectives such as increase in profit and increase in market share. The
3. Provides a Plan
Not everyone markets according to a plan, and this is the very reason one should write
down a plan and stick to it. A marketing plan acts as a guide as the business
progresses, so owners can see where their time and money is going. It provides a look
Page 21
into the future goals of the company, and gives step-by-step directions on how to
4. Defining a Brand
Defining a brand means knowing what you are selling, and to whom you’re selling it
to. In other words, you must also define your audience. Without knowing who to
market to, business owners can lose. Due to marketing strategies the image of the
With knowledge gained from identifying your best customer profile you can create a
core marketing message that will differentiate you from your competition.
We call it a Total Web Presence. Your website is your hub and all of your marketing
tactics are designed to direct your prospects to your educational hub. That includes
offline as well as online. A great marketing strategy will help you identify where you
prospects “hang out” and that enables you to put out “bread crumbs” of content which
Page 22
LIMITATIONS TO BE TAKEN WHILE FRAMING MARKETING
STRATEGIES
Marketing strategies can give your marketing efforts and campaigns a focus. Instead
of hoping that customers find their way to your small business or marketing to
everyone all the time, marketing strategies help to divide what is an ocean of
1. Cost
Adverting and marketing costs money. If you don’t do the proper research then you
might end up throwing money away. Wasting marketing efforts by targeting the
minimum.
2. Investment of time –
Researching the appropriate marketing strategy, designing and writing the adverts,
getting them published, dealing with any response. It’s important to spend time
keeping track of how successful or not your marketing campaign is. A potential
campaign.
3. Failure
could invest time and money designing and advertising a sale, and sacrifice normal
profits during the promotion, only to achieve moderate results. Careful research and
Page 23
expert advice from a marketing consultant can help maximize your chances for
4. Predictability
If your promotions occur in a predictable pattern, potential customers might wait for a
sale rather than buy the product or service at full price now. That means if a retail
clothing store offers a sizable discount on most holidays, sales will be low between
holidays, and relatively few customers will ever pay full price.
5. Bargain Hunters
New customers might learn to love your product or service and become long-term
clients. Or they might abandon you as soon as the promotion is over and continue to
6. Competitions
Competitors in the marketing space may be another disadvantage. You have to work
hard to make your product stand out or else you may lay back in spite of spending
Page 24
CHAPTER-2
COMPANY PROFILE
Page 25
COMPANY PROFILE
ESTABLISHED 1938
Page 26
About the Company
In 1950 a co-operative milk supply union was organized in Lucknow. This started
collecting milk from village and supplied to Lucknow and local Markets. This milk
union continued function for about a decade; in the mean timeLucknow milk scheme
was established by government of India IN 1959-60 to ensure the cheaper milk to the
centers in Eastern Uttar Pradesh. These chilling centers mainly coated in the District
of Lucknow, Barabanki, Raebareli, Kanpur, Unnao, Sitapur etc. the milk was mainly
collected through contractors. 10 milk unions were also found at the same time,
This programme was launched in Uttar Pradesh in 1972 and the implementing agency
was in the Pradeshik cooperative dairy federation limited which was framed in the
year. The basic idea was to replicate anand pattern societies in Uttar Pradesh. In
bar out, Mohanlalganj, Amausi blocks. A spear head team from national dairy
development,
which started functioning from April 1978 with a team of 27 employees, drawn fromL
ucknow milk 198 milk procurement cooperative societies by the year 1981, when the
Feeded balancing dairy, Lucknow Producer’s Co-operative Milk Union Ltd was set
up under operation flood-1 programme with the specific purpose of supplying milk
Page 27
of local markets and other districts dairies and conversion surplus milk into various
dairy products. This dairy is situated in the middle of Lucknow. The dairy was
remunerative market for milk produced in the milk shed comprising district of
flood-1 scheme. Thus feeder balancing dairy was obliged to receive entire surplus
milk from the rural areas, through a network of milk coop. In 1978-79 the average
pasteurized whole milk packed in polythene sachet for local consumers. The supply
Ltd was to convert surplus milk into various dairy-products, this activity started in
Sept. 1978.
With manufacture of skimmed milk powder and ghee, the manufacturing of table
Lucknow Producer’s Co-operative Milk Union Ltd, and expansion programme has
Increasing the capacity of ghee plant from 1.m.t. to 4.m.t. per day.
Page 28
The work of expansion has been complete in 1989.
The work of expanded dairy started functioning on full capacity in 1991-1993 year.
The liquid milk and products are selling in the market in the brand name of PARAG.
The milk product has been marketed by P.C.D.F. luck now. The sale of liquid milk
has been carried out Lucknow Producer’s Co-operative Milk Union Ltd, Lucknow.
In the year 1983 P.C.D.F. Ltd. started working under Operation Flood – II (White
revolution) scheme. Mostly unit milk Sahakari Board where connected under
PARAG provides hygienic, nutritious milk and milk product. In the year 1983
Operation Flood – II scheme was launched, the main objectives of the Operation
To collect the milk directly from the producers (Villagers through society).
To insure the supply of quality milk collected from the villagers which being
To save the producers, villagers and the customers from the middle man.
The milk is collected firstly to the society level then it comes to D.U.S.S. level
Page 29
Organization Structure& Marketing Strategy
Page 30
Page 31
Products of Company
S.no. Product Packing
2.0 GHEE
Page 32
11.0 BesanLaddoo 250 gm
1. BUTTER:
It contains less than 80% milk fat and more than 15% moisture and high acidity. It
is prepared exclusively from milk cream of curd of cow or buffalo milk with out the
addition of salt, color or any preservative and is intended for cooking or for
preparation of ghee.
2. GHEE:
and then converted into ghee. Bulk of ghee derived from buffalo milk because it is
richer in fat that cow milk. In Parag surplus butter is melted in steam jacket kettles.
Which are equipped with mechanical stirrers and heated with steam till the moisture is
removed.
Page 33
3. PANEER:
the boiled milk and the milk immediately gets adulterated and water is separated and
paneer is obtained. It contains less than 50% fat of more than 60% of moisture.
4.OTHERS:
Skimmed milk powder, cake and khoya are other products produced by Parag.
5. FUTURE PRODUCTS:
Some new products like coffee power, ready to make ice-cream powder, baby food
Skimmed milk powder - in 500 gm. cartons & 200 & 500 gm. plastic bottles
Page 34
Rate of Parag’s Product
PRODUCT’S NAME WEIGHT(ML/GM/KG) PRICE RATE
MILK 200ML Rs. 5.00
MEETA DAHI 200ML Rs. 13.00
SADA DAHI 200ML Rs. 12.00
CHAVAL KHEER 100ML Rs. 8.00
CHHENA KHEER 100ML Rs. 13.00
FLAVORED MILK 200ML Rs. 7.00
CHHACHH 500ML Rs. 9.00
BESAN LADDOO 250GM Rs. 60.00
PEDA 250GM Rs. 60.00
RASGULLA 200GM Rs. 36.00
RASGULLA 500GM Rs. 90.00
GULAB JAMUN 200GM Rs. 40.00
GULAB JAMUN 500GM Rs.100.00
DESHI GHEE 500GM Rs. 151.00
DESHI GHEE 1LITRE Rs. 300.00
KLAKAND 1KG Rs. 260.00
PANEER 100GM Rs. 20.00
Page 35
Marketing Department
Objective
The basic objective of marketing department is to deliver product on time with strong
supply chain management and control the product price because it is most important
aspect for consumer otherwise they will switch to another brand products
The comprehensive and intensive marketing activities at DUSS Ltd Lucknow are
controlled by the marketing manager. All the marketing staff goes every day in the
market (morning and evening), supervises the distribution of milk and milk products,
The route in-charge or super-visitor duty is to see whether the milk and the milk
product are properly distributed to the agents of Parag in due proper time. To observe
the market trends the competitor activities, the difficulty of the market. They try to
penetrate the new market area where the agent of Parag does not exist. They also
supervise whether the rates decided by the company is as it is executed in the market
or not. They also supervise whether the behaviour of the transporter is suitable to the
agent as well, as the customers all the activities which are done by the marketing
supervisor are feed back to the manager marketing and GM of the unit.
At present the distribution of the milk and milk product is done through 20 TATA 407
vehicles which are agreement by the company. Presently two insulated vans are
supplying the milk and the milk products. There are ten retail points of Parag. The
agent of Parag take milk and milk product according to the demand through the
supplier of the Parag van, the distribution is done in the evening and
customers.Lucknowunit supply hygienic, fresh milk through the milk vans. Lucknow
Page 36
is the first unit which is selling directly to the customer, door to door three loose milk
tankers.
Marketing Mix
In market as there many types of products are available so it becomes difficult for the
marketers to pursue the right segment market so that they can position product
effectively to target customer. In order for this they use mix of tools of marketing,
Marketing mix is a set of marketing tools that the firm uses to pursue its marketing
objectives in the target market. These tools can be classified broadly into 4 P’s of
marketing:
Product
Price
Place
Promotion
which hold the key to revenue recognition depends upon the effectiveness of supply
chain strategy rolled out. Transportation network design and management assume
Page 37
Distribution Strategy:-
Distribution of milk should be more through retailers or direct from the company.
Company adopts a new distribution channel as home delivery because the time is
most important.
Promotional Strategy
a) Pulling strategy
The Company should use sales promotion method to attract the consumers like off
b) Pushing strategy
As retailer play an important role in promoting the products to the end users, so
schemes and prize should be given as incentives for achieving high performance. This
will help in providing the required push for the product. Special display of Parag at
outlets should be done to attract the consumer to the final purchasing decisions
are made at the point of purchase. The retailers are not satisfied with the commission
Page 38
Pricing Strategy
DugdhSangh should make a strategy to analyze the consumer’s capability and then set
accordingly prices. DugdhSangh should make its products keeping in the mind of
king´. Marketing of products should be consumer oriented i.e. marketing of goods and
services according to the needs and wants of consumers. The management of the
company should visit the market on a periodical base to give the direct feedback on
the market equation. The company must provide training and refrigerator to their
must provide an inspector who has full power to replace the milk at the retail point.
Page 39
ORGANIZATION PERFORMANCE
ESTABLISHMENT OF ORGANIZATION:
The organization was established in year 1938 and was registered on 23rd March
1938.
quality certification on all milk and other products of a milk union in Allahabd, Uttar
Pradesh has joined a select club of states in the country to ensure quality control in
products under the brand name of Parag, produced by the Pradeshik Cooperative
Dairy federation (PCDF) will now on mean a guarantee that the milk being sold under
this seal is “pure, hygienic and safe”. The NDDB had given its approval of the quality
certification for the Allahabad Union, milk union of Kanpur followed by Varanasi and
Lucknow. With his UP joined Gujarat besides the metropolitan cities of Bangalore,
Delhi and Kolkata to get this unique distinction. The news of NDDB certificate had
brought in both great honour and challenges. It is a very coveted certification, which
standardize quality in products. There are about 51 milk unions spread across the state
and the NDDB quality umbrella has covered nearly all of them.
Page 40
MARKET SHARE OF PARAG IN LUCKNOW
Parag has captured near about 52% of market share in Lucknow city as compared to
different milk producers such as AMUL, local suppliers etc . Greater number of
consumers is buying the PARAG products due to its taste, price, brand, name, purity
and quality.
1. Liquid milk
2. ParagBesanladdoo
3. ParagMattha
4. ParagKheer
5. Paneer
6. ParagPeda
7. White Butter
8. Parag Curd
9. Table Butter
Page 41
DEMAND AND SUPPLY ANALYSIS
The consumption of milk and milk products in Lucknow has been a sudden spurt in
recent times and the demand has grown much beyond the local production levels. In
this regard, Uttar Pradesh Milk Union has decided that Lucknow would be
supplemented with supply from neighboring districts. This decision was taken by
Pradeshik Cooperative Dairy Federation (PCDF) general manager S.K. Prasad, since
milk supply from local Union members, besides Rai-Bareli disrtict, could barely meet
the demand in the UP capital, said here today. Now milk tankers would ferry from
and Bahraich districts to the Lucknow Milk Union Dairy for processing and
Production unit gets 1million liters of milk per day. This increases to 1.5
million liters in winters and come down to 7-8 lakh liters per day. The steady sales
progress of the milk union is reflected from the fact that from an average sales of
94,460 liters of liquid milk per day in the year 2002-03. The sale grew to 1,36,886
liters per day in the year 2007-08 and during the year 2008-09 and the sales stands at
Consequently, the sales turnover of the Milk Union has grown from Rs. 64.07 crore in
Page 42
STRATEGIES IN DIFFERENT STAGES OF PRODUCT
1. Introduction Stages:-
Rapid Skimming
Slow Skimming
Market is limited.
Rapid Penetration
Page 43
2.Growth stage:-
Strategy :
2. Maturity Stage
Strategy:
Market modification.
Product modification.
MARKETING DIVISION
The marketing division of LMU has been divided into two parts:-
The division is important because the marketing strategies of both are entirely
different.
Page 44
LIQUID MILK MARKETING
At present the liquid milk is having the market name as “PARAG” and it is
being marketed through local units/ milk union in major cities of U.P and Delhi under
the director of the PCDF Ltd. Lucknow, Kanpur, Delhi, Varanasi and Meerut are the
The above products reach the ultimate consumers through one of the following
channels:
Stockiest sale
Concessionaire sale
Manufacture> Concessionaire>Consumer
Through this channel the product are highly perishable nature finds their way out.
Except U.P and Delhi, in other state PARAG products are distributed through clearing
overheads by eliminating the necessity of the PCDF owned warehouses and offices in
their state.
Page 45
MARKETING STRATEGIES OF PARAG
The term marketing mix has been applied to the activity of combining marketing
marketing plan, which incorporates the various appropriate methods of reaching these
objectives.
Product quality
Cash discount
Advertising
Product development
Product range
Sales force
Sales aid
Stock level
Units of sale
Distribution arrangements
Credit
Packaging
Page 46
BRAND LOYALITY
company and its product/services. In the sense, a consumer is willing and ready to pay
more for a product with a strong brand and to do it more frequently. For instance if
you buy ketchup and you are wandering the aisles of your grocery stores, you will see
the Heinz right next to the store brand. Fundamentally, both products are identical-
tomatoes, sugar and water, but the emotional attachment of your “training” (from ads)
- “there is no other kind, once you have tasted Heinz”, and the familiar shape of the
bottle will drive you to buy the Heinz ketchup at a premium price.
Take a look at Levis for a brand that suffered badly from fatigue. In the 80s
they had a strange hold on the denim market. Then in the 90s they were caught with
their pants down (so to speak). The lure of their brand vanished. Competitors took the
fight to them. I don’t think that they have regained that brand strength since.
Page 47
PROCUREMENT OF MILK
1. RECEPTION OF MILK:
Reception of milk refers to the process of making the decision regarding the
acceptance of milk for further processing, whether the milk is acceptable or not, has to
be decided by the person in charge of the reception section. The place where the
process is carried out is known as reception dock. Since the future processing of milk
mainly depends upon its quality. The decision of accepting the milk must be made
very carefully.
a) Unloading
b) Sampling
c) Testing
2. CHILLING OF MILK:
After reception of good quality of raw milk to sufficiently low temperature so that
the growth of microorganism present in the milk is checked. In this process the
temperature of milk should be reduced to less than 10 degrees C preferably 3.4 degree
C.
3. STEURIZATION OF MILK:
The process of heating every particle of milk and milk products to at least 63
it to at least 71.5 degree C and holding at such temperature continuously for at least
Page 48
15 seconds. All pasteurized milk shall be cooled immediately to a temperature of 10
DUSS have its own packing machines sponsored by DRDA, Muzaffarnagar. 9000
litres of milk of different standards i.e. (1) Full Cream (2) Standard milk (3) Double
tonned milk is packed per day. The poly packed milk is being supplied in different
cities i.e. Muzaffarnagar, Haridwar, Saharanpur and Meerut also. Rest milk is send to
the Mother Dairy, Delhi and Feeder Balancing Dairy Pratappur, Meerut city by its
own milk tankers. DUSS are also manufacturing 300kg to 400 kg per day from the
cream let after standardize milk. DUSS have its Ghee packing machines sponsored by
by the Primary Milk Cooperatives Societies. Paneer and flavoured milk are also
products.
MILK PROCESSING
The milk that the milk trucks deliver to the company production plants is
transported in large milk tanks. Milk is milk, but all milk is not the same. That also
applies to the storage of the milk. The milk is received from Parag Dairy farmers in
the Uttar Pradesh, which Parag processes with protected designation. Parag Dairy
farmers and employees work according to quality guideline, which ensures thequality
Page 49
of the processes. Naturally, there are ISO guidelines. And increasingly, the Hazard
Analysis of Critical Control Point (HACCP) and the British Retail Consortium (BRC)
procedures are considered as the standards for the food safety. Quality assessments
Processing starts as soon as possible after the milk has been delivered. An
important first step is pasteurization, which involves heating the milk briefly and then
quickly cooling it again. This process effectively eliminates unwanted bacteria. The
milk is then stored at low temperature. Another initial step is standardization i.e.
adjusting the fat content of the milk. The milk is spun around in large centrifuges,
which separates the lighter elements (cream)from the heavier elements (skimmed
milk). This gives each type of milk its own fat content: 3.5% for full fat milk, 1.5%
A basic principle in dairy processing is separating the cream from the skimmed milk.
With the exception of milk fat, skimmed milk contains all the goodness of milk, such
as proteins, calcium and minerals. After the cream has been skimmed off, anything is
Page 50
STEP 4:- CREAMS:
This valuable liquid is a natural flavoring, used for whipped cream, but also for
yoghurts and deserts. It not only gives them an extra creamy consistency but a full-
bodied flavor. And of course, cream is processed into butter. Parag milk goes through
23 quality checks just for you. The dairy receives milk at 5 degree C through road
milk tankers from various milk unions of PCDF Ltd. after thorough testing milk is
1. Cleanliness
2. Foreign particles
3. Organoleptic test
4. Soda test
5. Alcohol test
6. Urea test
7. Glucose test
8. Sugar test
9. Salt
12. Starch
Page 51
16. Milky activity
23. Coliforms
Page 52
Page 53
Page 54
Page 55
Page 56
Page 57
Page 58
Page 59
SWOT ANALYSIS
STRENGTHS
Proper capitalization.
WEAKNESSES
gives milk long life. Surely many new processes will follow to improve milk quality
Lack of control over yield: Theoretically, there is a little control over milk
insemination and properly managed animal husbandry practices, coupled with higher
yield.
Page 60
Logistics of procurement: woes of bad road and inadequate transport facility
make milk procurement problematic. But with the overall economic improvement in
Problematic distribution: yes, all is not well with distribution. But if ice
creams can be sold virtually at every nook corner, why can’t we sell other dairy
products too? Moreover, it is only a matter of time before we see the emergence of a
being tougher day by day. But then completion has to be faced as a ground reality, the
OPPORTUNITIES:
“Failure is never final, and success is never ending.” Dr. Kurien bears out this
statement perfectly .He entered the industry when there were only threats. He met
failure head-on, and now he is clearly an example of “never ending success”. If dairy
entrepreneurs are looking for opportunities in India, the following areas must be
development , packaging and presentation. Given below are potential areas of value
addition:-
a) Steps should be taken to introduce value added products like shirkhand, ice
b) This will lead to a greater presence and flexibility in the market place along
c) Addition of cultured products like yoghurt and cheese lend further strength,
Page 61
d) A lateral view opens up opportunities in milk proteins through casein,
Yet another aspect can be the addition of infant foods geriatric food and
Nutritional.
exporting to Bangladesh, Srilanka, Nigeria and the Middle East. Following the new
GATT treaty, opportunities will increase tremendously for the export of agriculture
THREATS
Milk Vendor, the unorganized sector: Today, milk vendors are occupying
the pride of place in the industry. Organized dissemination of information about the
harm that they are doing to producers and consumers should see a steady decline in
their importance.
Page 62
SCOPE OF THE STUDY
the customers?
Page 63
Page 64
OBJECTIVES OF THE STUDY
To find out marketing strategies of Parag milk in Lucknow.
To discover the main reason beyond shifting of customer from Parag milk to
other brands.
Page 65
CHAPTER-4
RESEARCH METHODOLOGY
Page 66
RESEARCH METHODOLOGY
Research methodology is a way to systematically represent research on any problem.
It tends taken by the researcher in studying the research problem along with the logic
behind them. It tends to define the methodology for the solution of the problem that
has been undertaken for the purpose of the study. The methodology may include
RESEARCH DESIGN
DESCRIPTIVE RESEARCH:
SAMPLING DESIGN
The following factors have been decided within the scope of sample design:
Sample Size: A sample of minimum respondents will be selected from various areas
of Lucknow. An effort was made to select respondents evenly. The survey will be
Sample Unit: In this project sampling unit consisted of the various individuals who
Page 67
Sampling Technique: For the purpose of research convenient sampling technique
will be used.
Sampling Frame: It consisted of various sources from where information about the
respondent is extracted.
DATA COLLECTION
There will be two types of data sources used in this research. These will be
Secondary data
Secondary data is the data collected from already been use or published information
like journals, diaries, books, etc .In this research project, secondary source used were
various journals, and website of various online journals.
Primary data
Primary data is the data collected for the first time from the source and never have
been used earlier. The data can be collected through interviews, observations and
questionnaires. In this project, an appropriate questionnaire will be designed which
will be filled by the customers of Parag Dairy.
Universe-Lucknow
Page 68
CHAPTER-5
DATA ANALYSIS
Page 69
Data Analysis and Interpretation
Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor
Figure 4.2
Figure 4.2 shows that 31% respondents replied that Parag Milk has excellent quality
however 25% respondents replied that Namaste India excellent quality, 44%
respondents replied that Parag Milk is good in terms of quality however 43%
respondents replied that Namaste India is good in terms of quality.
Page 70
2) Milk brand is more demanding by the customer
Parag Milk 64%
Others 36%
Parag Milk
36%
64%
Figure 4.3
Figure 4.3 shows that 64% respondents replied that Parag Milk is more demanding by
the customer however 36% respondents replied that Namaste India is more
demanding by the customer.
Page 71
3) Rate the packaging of Parag Milk in terms of safety and attractiveness
Excellent Good Average Poor
Parag Milk 30% 45% 22% 6%
Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor
Figure 4.4
Figure 4.4 shows that 30% respondents replied that Parag Milk has excellent
packaging in terms of safety and attractiveness however 33% respondents replied that
Namaste India has excellent packaging in terms of safety and attractiveness. 42%
respondents replied that Parag Milk has good packaging in terms of safety and
attractiveness however 46% respondents replied that Namaste India has good
packaging in terms of safety and attractiveness.
Page 72
4) Rate the Parag Milk in terms of nutritive values
Excellent Good Average Poor
Parag Milk 34% 40% 15% 11%
Parag Milk
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor
Figure 4.5
Figure 4.5 shows that 34% respondents replied that Parag Milk is excellent in terms of
nutritive values however 30% respondents replied that Namaste India is excellent in
terms of nutritive values. 40% respondents replied that Parag Milk is good in terms of
nutritive values however 49% respondents replied that Namaste India is good in terms
of nutritive values.
Page 73
5) Rate the Parag Milk in terms of taste
Excellent Good Average Poor
Parag Milk 24% 43% 23% 10%
Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor
Figure 4.6
Figure 4.6 shows that 24% respondents replied that Parag Milk is excellent in terms of
taste however 31% respondents replied that Namaste India is excellent in terms of
taste. 43% respondents replied that Parag Milk is good in terms of taste however 45%
respondents replied that Namaste India is good in terms of taste.
Page 74
6) Rate the Parag Milk in terms of healthiness
Excellent Good Average Poor
Parag Milk 28% 46% 21% 5%
Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor
Figure 4.7
Figure 4.7 shows that 28% respondents replied that Parag Milk is excellent in terms of
healthiness however 22% respondents replied that Namaste India is excellent in terms
of healthiness. 46% respondents replied that Parag Milk is good in terms of
healthiness however 52% respondents replied that Namaste India is good in terms of
healthiness.
Page 75
7) Rate the Parag Milk in terms of value for money
Excellent Good Average Poor
Parag Milk 25% 42% 18% 15%
Parag Milk
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor
Figure 4.8
Figure 4.8 shows that 25% respondents replied that Parag Milk is excellent in terms of
value for money however 27% respondents replied that Namaste India is excellent in
terms of value for money. 42% respondents replied that Parag Milk is good in terms
of value for money however 43% respondents replied that Namaste India is good in
terms of value for money.
Page 76
8) Rate the pricing of Parag Milk.
High Reasonable Low
Parag Milk 18% 75% 7%
Parag Milk
80%
70%
60%
50%
40%
30%
20%
10%
0%
High Reasonable Low
Figure 4.9
Figure 4.9 shows that 75% respondents replied that the pricing of Parag Milk is
reasonable however 69% respondents replied that the pricing of Namaste India is
reasonable.
Page 77
9)Parag Milk always available at your shop
Strongly Strongly
Agree Agree Neutral Disagree Disagree
Parag Milk 32% 49% 5% 8% 6%
Parag Milk
60%
50%
40%
30%
20%
10%
0%
Strongly Agree Agree Neutral Disagree Strongly
Disagree
Figure 4.10
Figure 4.10 shows that 32% respondents were strongly agreed with the fact that Parag
Milk always available at their shops however 38% respondents were strongly agreed
with the fact that Namaste India always available at their shops. 49% respondents
were agreed with the fact that Parag Milk always available at their shops however
45% respondents were agreed with the fact that Namaste India always available at
their shops.
Page 78
10) Rate the distribution system of Parag Milk
Excellent Good Average Poor
Parag Milk 21% 44% 27% 8%
Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Average Poor
Figure 4.11
Figure 4.11 shows that 21% respondents replied that Parag Milk has excellent
distribution system however 22% respondents replied that Namaste India has
excellent distribution system. 44% respondents replied that Parag Milk has good
distribution system however 47% respondents replied that Namaste India has good
distribution system.
Page 79
11) Rate the promotional efforts of Parag Milk.
Very Not Not at all
Effective Effective Effective Effective
Parag Milk 23% 56% 5% 16%
Parag Milk
60%
50%
40%
30%
20%
10%
0%
Very Effective Effective Not Effective Not at all Effective
Figure 4.12
Figure 4.12 shows that 23% rated the promotional efforts of Parag Milk as very
effective however 22% rated the promotional efforts of Namaste India as very
effective. 56% rated the promotional efforts of Parag Milk as effective however 53%
rated the promotional efforts of Namaste India as effective.
Page 80
12) Rate the TV advertisement of Parag Milk.
Very Not Not at all
Effective Effective Effective Effective
Parag Milk 31% 47% 14% 8%
Parag Milk
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Very Effective Effective Not Effective Not at all Effective
Figure 4.13
Figure 4.13 shows that 31% rated the TV advertisement of Parag Milk as very
effective however 32% rated the TV advertisement of Namaste India as very
effective. 47% rated the TV advertisement of Parag Milk as effective however 49%
rated the TV advertisement of Namaste India as effective.
Page 81
13) Rate the online advertisement of Parag Milk.
Very Not Not at all
Effective Effective Effective Effective
Parag Milk 25% 54% 13% 8%
Parag Milk
60%
50%
40%
30%
20%
10%
0%
Very Effective Effective Not Effective Not at all Effective
Figure 4.15
Figure 4.15 shows that 25% rated the online advertisement of Parag Milk as very
effective however 30% rated the online advertisement of Namaste India as very
effective. 54% rated the online advertisement of Parag Milk as effective however 52%
rated the online advertisement of Namaste India as effectiv
Page 82
CHAPTER-6
FINDINGS
Page 83
FINDINGS
31% respondents replied that Parag Milk has excellent quality however, 44%
64% respondents replied that Parag Milk is more demanding by the customer.
30% respondents replied that Parag Milk has excellent packaging in terms of
safety and attractiveness however 42% respondents replied that Parag Milk
values however 40% respondents replied that Parag Milk is good in terms of
nutritive values.
24% respondents replied that Parag Milk is excellent in terms of taste howeve.
healthiness.
25% respondents replied that Parag Milk is excellent in terms of value for
money however 42% respondents replied that Parag Milk is good in terms of
32% respondents were strongly agreed with the fact that Parag Milk always
Page 84
31% rated the TV advertisement of Parag Milk as very effective however
25% rated the online advertisement of Parag Milk as very 54% rated the
Page 85
CHAPTER-7
RECOMMENDATIONS
Page 86
RECOMMENDATIONS
Parag can cut costs for some period of time followed immediately by strong
advertising. As we have seen during the research that most of institutions give
outlets). As the quality and taste and availability of Parag are best in market
and local milk companies’ good margin to them, Price remains the main
Can start schemes like cash prizes or foreign trips on scratching the barcode
on the packet
Locate the institutions using competitor’s milk and provide them attractive
offers to increase the market share so that at least the big competitors will not
try to expand.
Mergers and Acquisition in the milk industry with local players help the
this both companies can buy the milk from local dairies taking over their
Both companies should introduce a mascot for the milk. This will help in easy
Efficiency in distribution
Page 87
CHAPTER-8
CONCLUSION
Page 88
CONCLUSION
In today’s competitive world while entering in the market it is very necessary to have
good knowledge of the potential of a particular market. The information regarding the
activities of competitor’s existing in the market so that we can plan our each activity
according to that. It is also necessary to retain the existing customers apart from
attracting the new customers. The final outcome of the project is that the parameters
which hinder the sale of milk products of Parag Dairy are Price, Quality, Service and
Taste. Milk market is a totally unpredictable market and the organization should be
over-cautious of any complaints that come into milk as it includes the sentiments of a
mother for her kid and she would not prefer to give anything to her kid for which she
is not 100% satisfied. So the company should take every step possible to contain these
problems which in some way or the other affects the sale of Parag Dairy and its
retailers.
Page 89
CHAPTER-9
LIMITATIONS
Page 90
LIMITATIONS
3. The study was conducted in Lucknow city. So the findings and conclusion
4. The methods used for analysis and interpretation purpose may have some
limitations of their own and some errors can always creep in.
Page 91
BIBLIOGRAPHY
Page 92
BIBLIOGRAPHY
Books
Hall.
Websites
http://www.business-standard.com/article/management/parag-milk-foods-way-to-go-
112021300028_1.html
https://www.slideshare.net/chiragbeladiya3/chirag-beladiya-final
https://www.slideshare.net/avinandankarmakar9/a-project-of-horeca-53920019
Page 93
APPENDIX
Page 94
QUESTIONNAIRE
Q3. How will you rate the packaging of Parag Milk in terms of safety and
attractiveness?
Excellent Good Average Poor
Parag Milk
Q4. How will you rate the Parag Milk in terms of nutritive values?
Excellent Good Average Poor
Parag Milk
Q5. How will you rate the Parag Milk in terms of taste?
Excellent Good Average Poor
Parag Milk
Q6. How will you rate the Parag Milk in terms of healthiness?
Excellent Good Average Poor
Parag Milk
Q7. How will you rate the Parag Milk in terms of value for money?
Excellent Good Average Poor
Parag Milk
Page 95
Q8. How will you rate the pricing of Parag Milk?
High Reasonable Low
Parag Milk
Q10. How will you rate the distribution system of Parag Milk?
Excellent Good Average Poor
Parag Milk
Q11. How will you rate the promotional efforts of Parag Milk?
Very Not
Effective Effective Effective Not at all Effective
Parag Milk
Q13. How will you rate the online advertisement of Parag Milk?
Very Not
Effective Effective Effective Not at all Effective
Parag Milk
--------------------------------------------------------------------------------.
Page 96