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Executive summary:

The project is about market research and development of parag dairy products in
HORECA segment. HORECA means HO=Hotels, RE=Restaurants, CA=Caterers &
Cafeteria. The company allotted me a Hyderabads north and central regions. I have to
visit all outlets in that regions, there I have to promote parag dairy products to all the
customers and giving required information what they ask like distributors, quality &
distribution service and also I have to collect information of customers which company
products they are using from how many years, what prices they are getting from them and
how much credit period they are giving. I have to know how many dairy product
companies are there in Hyderabad from that I have to analyze who are the competitors for
parag. From existing customers I have to take feedback about the quality of products and
distribution service. I have to study and analyzed the dairy based food product market of
Parag dairy Products on different aspects of the markets, outlets, distribution and
consumers. I have to generate leads and also have to give suggestions to increase their
sales at the end of project.


India is the highest milk producer in the entire globe. India is well known as the 'Oyster'
of the global dairy industry

Operation Flood, launched in 1970, was a project of India's National Dairy Development
Board (NDDB), which was the world's biggest dairy development program. It transformed India
from a milk-deficient nation into the world's largest milk producer

It is the program behind "the white revolution." It created a national milk grid linking
producers throughout India with consumers in over 700 towns and cities, reducing seasonal and
regional price variations while ensuring that the producer gets a major share of the price
consumers pay, by cutting out middlemen.

Verghese Kurien known as the Father of the White Revolution in India. It was
introduction of growth of milk production and encourage Indian dairy farmers to keep more
animals for increasing production of milk.


Mr. Devender Shah is the founder and MD of our company. Mr. Mahesh Ishrani is CEO
of PARAG MILK FOODS PVT. LTD. More than 1000 people are currently working under the
company as employee. It has an annual sales of more than 500 crore.

Gowardhan, founded by Parag Milk Foods Pvt. Ltd in 1992, is one of India's largest
private dairies, with an output capacity of 12,00,000 liters per day. Located in a lush green
village called Manchar in Maharashtra (60 km from Pune), and also owns the largest cow farm in
India as they will as Asia's largest cheese plant.

They are an ISO 9000 and AGMARK certified company, committed to international
standards of product quality. Their product portfolio includes Skim Milk Powder, Whole Milk
Powder, Ghee, Processed Cheese, Butter, Dahi, Dairy Whitener and GulabJamun Gowardhan
Mix powder and all are made from 100% fresh cow milk.
PARAG Company having four brands Govardan, Go, Topupp and Pride of cows but in
Hyderabad they are promoting only three brands. In this company milk, curd, ghee are branded
with a Govardan and bi products like cheese, cream, lassi, etc. are branded with a brand Go and
they have flavored milk like butterscotch, pista, mango, strawberry, elachi these products are
branded with a Topupp. Pride of cow brand available only in Maharashtra because it was fresh
milk distributed to customer within 24 hours after procurement.

Approx. Per day 56 tonnes cheese produced by company.

They have their own 35 acres farm and around 3000 Cows.
For pride of cows brand they have constructed separate farm named as Bhagyalakshmi
dairy farm in this farm they are using cross bred Swiss Holstein and Friesian cows.
And they collect milk from mix of cow breeds for manufacturing different dairy products.


Companys peerless success is greatly dependent upon the high tech manufacturing plant
spread over an area of about 50 acres. Companies make use of the technically advanced
equipment and machinery to carry out the varying process like manufacturing, packaging, etc.
They are also backed up by the separate R&D and QC labs to deliver the exclusive range Dairy
Products to the clients.
Quality Assurance:

Company is a prominent name in the entire industry because of the quality of the
products & offer to the clients. A great care is taken to assure the best quality of products for
which they have established a separate and complete QC Lab. Their experts carry out the task of
quality checking in accordance with the set industrial standards.

A dairy farm produces milk and a dairy factory processes it into a variety of dairy
products. These establishments constitute the global dairy industry, a component of the food

Dairy products are a type of food produced from or containing the milk of mammals,
primarily cattle, water buffaloes, goats and sheep for human consumption.

A variety of dairy products are indigenous to India and an important part of Indian
cuisine. Products like milk, curd, Ghee, butter, cheese, yogurt, khoa, paneer, cheese, creams

Company Products:



Our brands cover a wide range of products to cater to consumers around the world who
put a premium on taste, nutrition, health, craftsmanship and sheer indulgence.

Gowardhan premium ghee:

Gowardhan ghee, untouched by hand in the manufacturing process, is great on taste and
made from 100% pure cow's milk. Available in 100ml, 200ml, 500ml, 1litre, 5 litre& 15 litre.
The packaging available in both tins, jars and packets
Gowardhan Butter:

Pasteurized unsalted table butter made from clean and wholesome cream derived from
100% pure cows milk. It is light on taste, soft and easy to spread and contains no preservatives
or added flavors. Available in 500 gm. and 100 gm. packs. In Hyderabad they are not promoting
due to shortage of production.

Gowardhan Fresh Paneer:

It is soft fresh and easy to cut into pieces. High in calcium and protein. Low fat content.
Available in 200gms and 500gms pack.

Gowardhan fresh milk:

Homogenized and pasteurized toned milk. High calcium content. Available in 250ml,
500ml and 1ltr pack.

Gowardhan curd:

Made from pasteurized toned ilk and active culture. Thick and natural taste. Contains 3%
fat and 0% cholesterol. Available in 80gms, 200gms, 400gms, 1kg and 2kg pack.


'Go' is derived from Gowardhan and has a dual meaning- apart from resonating with the

Sanskrit word for Cow, the brand embodies an energetic spirit with the act of going

synergizing well with the attitude and beliefs of the young generation of today. It caters to

families that are modernized and westernized and who lead both busy and active lifestyles. Go

consumers include young working couples, well-travelled urban centric families with active

Go Cheddar cheese:

A premium quality full flavor cheddar cheese is made from 100% pure
cows milk. Ideal for cooking, sandwiches and salads. Available in 200 gm.
400 gm. 2Kg pack for (institutional packs). It have to be stored in 4 degrees

Go Mozzarella Cheese:

This is genuine mozzarella, made traditionally by the pasta filata process that gives its
soft and smooth stringy texture when baked, making it ideal for pizza and lasagnas. Available in
2kg packs (for institutional packs). It have to be stored in 4 degrees. Available in three types
shredded, deiced, blocks.

Go Cheese slice:

The perfect middle in sandwiches, the perfect topping on toasts, it is a product of pure
cow milk, it is pristine white in color. It is prepared by processed cheddar cheese and it has a
creamy and semi soft texture. It can also be used in Vadapao or burgers. In a pack there will be
50 pieces.

Go pizza topping:

Combination of cheddar and mozzarella cheese. Especially for pizza stringy texture and
sharp taste is really delightful. It is promoting only for Hyderabad market available in 2kg pack

GO processed cheese:

Blend of cheddar cheese of different age. It has smooth texture and high melting point.
Available in 200,400 gm. and 2 kg pack (for institutional packs). It have to be stored in (-18)
degrees. It is made with artificial bacteria.

Go filler cheese:

Used in wraps, rolls and cheese dips, inner layer of pizza. Easy to spread and smooth
texture. All GO cheese products having long shelf life of 6 months.
Go fresh cream:

Low fat cream. Made by 100 % cow milk. It is an all-purpose cream and can be used in
tea /coffee, cakes, pastries, fruit salads, Indian curries. It has long shelf life of 4 month. Available
in 200gms and 1ltr pack.

Go buttermilk:

Two different flavors are available- Southern spice and Masala cheese. Available in 200
ml and 1ltr pack.

Topp Up:

It is milk based instant energy drink with 10% extra protein. Made from 100% cows
milk. Available in different flavors Rose, Strawberry, Mango, Elaichi, Butterscotch, Pista. It
has long shelf life of 1 year.

Go double toned milk:

100% natural and 0% preservatives. Contains extra protein and calcium. Shelf life 6
month. Available in tetra pack 200ml and 1ltr; Fino packs 200ml and 500ml.
Pride of cows:

Pride of Cows milk is instantly pasteurized, chilled and packaged in bottles

and sent on its way to consumers, in a process that is mechanized, maintaining
absolute purity and keeping the taste, structure and nutrients of the milk intact.


Milk contains water 87%, fat 3.5%-3.7%, Lactose 4.9%, proteins 3.5%, minerals 0.7%
Milk classified into fats and SNF (solids not fats)
By using SNF non-traditional products and traditional added products prepared
Mozzarella cheese having stretching characteristic
Cheddar used for salty taste
Blend cheese having both stretching and salty taste
Processed cheese made by using artificial bacteria by storing in (-18) degree
cow milk having more sulfur content so it is in yellowish color but remaining mammals
milk is in white color
Buffalo milk contains more calcium and cholesterol

The production of dairy products in market was produced by different firms but the
characteristics and usage of product is same but the quality is different from different firms this
is called homogeneous product and there are very many firms in the market - too many to
measure so these type of market known as perfect competition.

A perfectly competitive market is a hypothetical market where competition is at its greatest

possible level.

Market size:

Indian milk industry is in perfect competition market

Top 7 states in milk production Uttar Pradesh, Rajasthan, Andhra Pradesh, Gujarat,
Punjab, Maharashtra, Madhya Pradesh
It has grown from producing 17 million tons of milk in 1951 to producing 146.3 million
tons in 2016.
The market size for milk and milk products (formal +informal sector) is estimated INR
3.6 lakh crores
Dairy cooperative network includes 177 milk unions which operates over 353 districts
and covers 1,33,340 villages and it owned by 13.9 million farmers

Indias FMCG sector is 4th largest Sector in the economy and contribute to around
3million employment opportunities.
The dairy industry in India has been witnessing rapid growth with liberalization.
As the economy provides good opportunities for MNCs and foreign investors to
release the full potential of this industry.
The industry contributes about Rs1,15,970 crores (US $ 25,771 million) to the
national economy.
India ranks first in milk production, accounting for 18.5 per cent of world
production, achieving an annual output of 146.3 million tones
There are more than 550 plants in the country with about 175 in the north, about
50 in east about 120 in south and west, accounting for more than 200.
More than 10 million dairy farmers belong to 96,000 local dairy cooperatives, who
sell their product to one of 170 milk producers' cooperative unions who in turn are
supported by 15 state cooperative
The Indian Diary industry employs about 8.47 million people on yearly basis out
of which 71% are women

Milk collection process in firm

Key players in Indian dairy industry
My project work

They had assigned me a project in HORECA (hotel, Restaurants, Canteens/Cafes)

segment. In this I have to visit hotel, Restaurants, Canteens/Cafes. They had allotted me
central and north regions in Hyderabad. In these places I have to introduce PARAG
products like milk and milk bi-products. They said me to focus mainly on fresh cream,
cheese, and topupps and for Hyderabad market they introduced new type of cheese in the
name of pizza topping it contains with a mixture of 30% cheddar & 70% of mozzarella.

I have to make a market research and development of parags dairy products in

Hyderabad market and to know which company products having high market share and
also know the reasons why they are using that company products and I have to promote
parag products, their benefits and differentiation from other products. I have to generate
new clients and had to take feedback from existing clients on distribution service and
quality of products.

On every day I will visit hotels, restaurants, cafes, caterers, canteens who can
affordable parag dairy products. I will ask them which dairy products they are using from
how many years they are using, their purchase pattern their payment method and what
prices they are getting those products after getting this information I introduce parag
company products which products they are supplying on what prices we will give to them
and by the end of day I will enter the total information into excel sheet which I had
collected in field.
Objectives of the project:

To know which company dairy products having high market share

To know how many dairy company products are present in Hyderabad
Taking feedback from the existing customers and know their satisfaction levels on service
and quality of products
If clients shifted to other company products then I have to take reasons why they shifted.
To promote our company dairy products to new customers
To generate new clients and determine new opportunities in market
Have to make competitor analysis to know where parag stands.
To know on what prices they are getting other company products
To know on what basis customer buying a products
To give suggestions to company where they are lagging in market and have to say new
strategies to increase their sales to maximize their profits.

Scope of the study:

This studies on the analysis of current trends of the dairy product and comparative study
on the Parag to find out which brand product create their reputation and the loyalty towards the

The main scope of the study was to understand the customers behavior in Hyderabad and
to know who the parags competitors are and how many various dairy companies are in market

The project will be learning of real market situation and how to deal with clients.
It provide information regarding company current position in the market
It will help us to know about our customers satisfaction level.
It helps to know customer loyalty towards brand

Relevance of this project to the company:

These project helps the company to increase sales and make awareness of parag
products in institutional segment (HORECA).

By these they know

Market capture of parag in Hyderabad

The competitors for parag and position of parag in Hyderabad
Clients satisfaction levels
Why customers are shifting from parag to other company products
Prices of different company products and how much credit time they are giving to
their customers
To know how many parag loyal customers and other company loyal customers.
Market capture of local dairy manufactures
How to increase the sales and get an idea where they are weak in business
Satisfaction of level of existing customers
Creating awareness and making promotion of parag products


Company had provided an excel sheet in that they had given format in that we had
entered raw data by asking every customer in this way I had done it known as primary research.

Following are the questions which I had asked to clients

Which company products are you using?

From how many years you are using this company products?
What is your buying pattern?
What is your payment method?

If they are use parag products then I will ask following questions

Are you satisfied with our company products?

How is the quality of products?
How is the distribution service?

Collection of data:

As HO-RE-CA survey/research of PARAG MILK FOODS PVT. LTD. had done in

Hyderabad. In survey our main target was to collect more relevant raw data from customers. For
that purpose we gave more emphasize on colleting primary data

Primary data:

They were the main source of Primary data. The method of collection of primary data
was direct personal interview through a structured questionnaire. These are methods which are
used to collect the data from the actual field. In these methods a questionnaire was prepared by
company in that fields I had to fill the data which was containing limited fields which gives the
full information of customers. These questions are asked to the selected group of people.

Sampling techniques:

The Sampling technique followed by the survey, was the convenience sampling
and it were in the HO-RE-CA business. I had selected Hotels, Restaurants, Cafes, and
Bakeries for sampling, as these are the area where company can improve for large market
share from Go, Gowardhan & Toppup products.


Survey Data Analysis & Interpretations:

Below graphs representing the data of north and central regions of Hyderabad.
These are I visited hotels, fine dine, pizza points, cafes.






4 4

The above graph represents total visited places in field work. In this field work I
had visited 125 outlets.



4.8 4.8 4
1.6 1.6 1.6 0.8
OT R KY OD u r V N D

The above graph represents each company dairy products capturing how much
market share in central and north Hyderabad regions. Parag had captured 10.4% in total

no of visited outlets




20 13


The above graph represents total visited outlets in that it shows how many old
clients and new generated clients after the project completed. Before project parag had
captured 10.4% and after project the market share increased to 17%


60 58.82


40 36.76



2.94 1.47

The above graph represents which company captures how much market in fresh
cream product but for parag no clients in fresh cream.

90 88.17








10 5.38 4.3 2.15


The above graph represents which company captures how much market in ghee. In
total market parag captured 5.3%




10 7.79 6.49

The above graph represents which company captures how much market in cheese.
In total market parag captured 6.49%



23.08 23.08



The above graph represents which company captures how much market in milk. In
total market parag captured 23%





10 6.52

The above graph represents which company captures how much market in paneer.
In total market parag captured 2.17%.
Purpose of doing survey:

Getting feedback from the present customers to know about the service providing
by parag and quality of products
To know clients preferences are in brand or price or quality of products
How other companies are performing in market and how much market they
capture in Hyderabad
To know how many dairy product companies are in Hyderabad
Which product (ghee, cheese, fresh cream, etc.) having more demand in
We can get new ideas by these company can maximize their sales and also known
where they are lagging in business.
Gives an idea about where we stands in the market

Hyderabad market is price sensitive market they first consider price not quality of
products, only few of them consider quality
Most of the Muslim clients are only want to take dairy products from begum
Begum bazar was the big competitor in north region of Hyderabad to all company
products those are local suppliers.
In Hyderabads central region AMUL was big competitor to PARAG.
Small cafes and restaurants are willing to buy parags products and they dont
want to shift other company products even though prices are high
I observed that parags quality is good when compare to other products by taking
feedback from existing clients and those type of small and startup cafes are
consider only quality because if the quality and taste is good then their will me
more customers to their cafes
It is difficult to shift the customers who having a good relationship with vendors
and brand loyal customers.
In my observation only few of them are brand considers most of them are price
Few of them want high credit payment method then only they buy products.
In parag fresh cream was less price when compare to other company products few
are willing to take fresh cream product but most of them are saying for only one
product we cant change vendor.
Parag dairy products selling price was high compare to other company products
but the quality is equal to price.
New clients will take the samples but they take a long time to give review of
In parag there are no promotion activities by these most of them dont know about
parag products.
A marketing guy should have a product knowledge then only they can easily
answers to the customers questions.
Problem in paneer packaging everyone asking 1 kg pack but they are package is
available in 500gms.
In food industry customers will not shift to other company products easily before
they want to check the samples, even though they use samples they take long time
to make a deal.
If once customer started to use parag products cannot shift to other brands
Gowardhan Ghee of company is high in demand among customers.
Most people were not aware about the company and their products other than GO
and Gowardhan if we say govardan ghee then they will recognize.
At the end of project I had closed nine deals.


Got a knowledge in dairy products and dairy industry

I had learnt how to speak with clients based on their knowledge and requirements.
Maintaining a good repo with clients
Learn how to negotiate in prices while closing deals
Promoting products based on their requirements
To have a meeting with manager have to wait for a long time and have to meet
again and again if they want to talk by these I developed patience
Improved in public speaking
Reduced phobia while making a conversation in an English with a new people.
Based on their intention and by observing them samples have to distribute.
Making a route plan helps to visit more clients
For every products the company should create awareness to the customers then
only customers will have some idea on brands.
Prices should not revealed out without knowing which company products they are
using and what price they are getting.

SWOT analysis:

Strengths Weakness
57% of sales from value added product No proper distribution network.

Asias first largest vertical dairy High working capital intensity at

24%of sales, lack of free cash flows
Proper and adequate infrastructure
Limited pricing power in highly
Low FAT competitive fresh products

Maximum shelf life Ineffective supply Chain

Better quality and Taste rather than other Different offering for GT/MT and
Having 4 brands like Gowardhan, Go Pride Institution

of Cow and Topp Up With Distinct

Interruption between GT/MT and

32% share in high growth modern trade and

Maintaining a bond with clients
general trade

Strong presence in high growth modern

trade and general trade

Usage of 100% cows milk

70% increase in processing capacity post

Opportunities Threats
More production to supply more Competitor provides a time to time

attractive scheme.
24 hour milk supply

Large number of competitors

Large market capture, Huge possibility

Same range of product in lower price

Rising demand for value added milk product

Switch over of old customer

GOVT incentive for organized player in the
dairy sector like VAT and tax benefits
Aggressive pricing by existing dairy
Strong presence in high growth modern co-operative like amul and Mother

Focus on value addition by small

Challenges in procurement fresh milk

Decline in global and domestic prices

of SMP

Availability of electricity for storage

and retailing of fresh dairy products

Potential increase in competition from

global and domestic players


After studied and observed of Hyderabad market I have to conclude that parag
products having good quality when compare to other company products but the
problems for the company are having high price when compare to other company
products, no awareness on products, there is no effective distribution service.
Hyderabad is a price sensitive market and most of them use products based on word
of mouth if products having promotions then it helpful to increase sales.

In Hyderabad most of the north region market was captured by local manufactures
but at central region customers uses only company products in that region amul was
competitor to parag
Parags Go fresh cream selling in less prices when compare to all other company
products but only for fresh cream customers are not shifting to our company if they
use only fresh cream then they are willing to take.

After conducting a market analysis program in Hyderabad, it is necessary that the

company should gone through this kind of survey and market research for increase
their market share, and sustain strongly in the industry.