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INTRODUCTION
Page 1
Chapter-1
INTRODUCTION
sector can drive growth, enhance quality of life, create jobs, and support
technology across the value chain and usher in the product innovation.
However, the Indian FMCG began to take shape only during the last
fifty-odd years today; the Indian FMCG industry continues to suffer from a
The definitional confusion that has marked the Indian FMCG industry is
getting confounded. Some others call it the CPG industry and some even
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call it the PMCG industry. The Indian FMCG industry has suffered because
of the confusion.
The facts that the FMCG industry is a noteworthy employer and a major
tax payer are being ignored. The only thing that is cheering the industry is
the reforms of the nineties. Post reforms, the industries is excited about a
legislation is the needs of the hour. It does not matter whether changes are
reforms. One thing is certain here: The Indian FMCG industry has
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In terms of growth potential, the Indian market is a great horse to
bet on. With a little help and understanding from the government, the
Indian FMCG can realize its true potential. So far, it has been a checked
savings for the FMCG players to reach where they are today. But, the
II. NDDB
NDDB stands for National Dairy Development Board. The NDDB was
farmer cooperatives and support national policies that are favourable to the
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II.1DAIRY DEVELOPMENT IN UTTAR PRADESH
U.P is the highest milk producing state in India having the share of 18% of
the total production of the country. The per capita availability has gone up
to 350 grams.
following sectors:-
1.Cooperative Sector
2.Private Sector
1. COOPERATIVE SECTOR:-
In the year 1917, saw the advent of the First Co-operative Milk Society at
this direction for the next two decades. It was then in the year 1938
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Objectives of the O.F. Programme
(1) Capturing a dominant share of the urban milk market, hitherto served
producer societies in different milk shed areas to the organized urban dairy
industry.
activities.
milk.
Lucknow and Varanasi milk sheds. Besides Cattle Feed factory of one
districts.
manufacture Ghee, Table Butter, Milk Powder, Infant milk food and other
2. PRIVATE SECTOR:-
the State, with a total handling capacity of 46.64 lacs liter per day. The
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dairy Development Department is also running some supportive
under Deen Dayal Rojgar Yojna was initiated in the year 1991. The
due course of time the scheme at the Government level was renamed as
Vishes Rojgar Yojna. For the Year 1999-2000 the total number of
be added in U.P.
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III. Company Profile-PARAG
PARAG is the pollen of flower the slogan in the logo is:-PURE NATURAL
Parag milk shed is situated in Lucknow, the capital of Uttar Pradesh since
agriculture products from the village to big cities rich in its milk potential
the milk shed has, in the source of last few decades been thoroughly
private dairies. Thus, while such intermediaries were retaining large profits
operative milk union set in 1938 to ensure fair payment to milk producers
and regulate supply of milk within UP. The unit receive preference equity
from union member (milk farmers). The union has 32000 members, which
dairy products such as pasteurized milk, curd, and butter. It is one of the
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40 similar milk union in UP , all of which sell their product under the
brand Parag through the UP’s apex milk body Pradeshik Cooperative
India the unit is in Lucknow and has processing capacity of 150,000 litres
milk trade not only in the state but also in the country itself. However
there was not much progress in this direction for the next two decades. In
the year 1938, the country’s first milk union ‘Lucknow Milk Producers
UttarPradesh.
districts of the state and the federation was made its implementation
agency. Being confined to eight districts only, the O.F.-I project did not
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have a major impact on this programme. As a result the Uttar Pradesh
and, with the purpose of expediting the dairy development programme the
Uttar Pradesh government passed the “Uttar Pradesh Milk Act, 1976.” In
department and the post of Milk Commissioner was created. As per the
government Act and the laws made under it, the Milk Commissioner was
appointed the Head of Department and secretary of the State Milk Board.
Vision:-
Mission:-
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PCDF’S mission is to become the strongest marketing by organization.
PCDF’S came into existence in 23rd march 1938 with the simple intention of
mission was to develop a product mix that would not only promote
Objectives:-
PCDF’S front end objective was to see that there was enough milk for
ultimate objective and delivering the pure Parag milk to every home.
Purpose:-
PCDF’S aims to build a system to ensure that individual farmer got a fair
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III.2 Profile of the Company
ESTABLISHED 1938
PANDYA
Mr. N.C.CHAURVEDI
Mr.TEJ SHANKAR
ROAD,
LUCKNOW.
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AREA OF DISTRIBUTION INITIALLY BAKSHI KA
TALAB,TELI BAGH,SOUTH
CITY,TEWARIGANJ, AT PRESENT
ENTIRE DISTRICT
For long years milk production in the country has been characterized by small –
scale production of milk by most farmers has made milk producers. This was an
important reason for the Kaira Union & its success. Unions which came in Gujarat
during the 1955’s acquired greater significance that traditional dairy co-operative
the reason being, they tuned in with the processes of modernization and
commercialization.
Between 1948 & 1957 the Kaira Union grew from 250 liters from 5 villages’
societies to 50,000 liters from 9000 village’s societies It was therefore, inevitable
that they attracted growing attention of policy makers. Towards the end of 1960’s
the lessons of the Gujarat Dairy co-operative Movement thus begain to get
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India entrusted the National Dairy Development Board (NDDB) with task of
Operation Flood was the result of an organized attempt directed towards the
development of the dairy industry in India. The program has laid emphasis on
process and market milk and to provide some of the essential technical services for
The emerging consumption pattern presents new challenging for the dairy industry.
The strategy is now shifting from distribution to sales and marketing. Extreme
movement of milk.
Indian dairy market is multi-layered shaped like a pyramid with the base made up
of vast market for western type milk products. Presently, rarely 778 out of 3,700
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cities & town are served by its milk distribution network dispensing hygienically
dairying already endowed with the first,people in India love to drink milk, hence
,no efforts are needed to make it acceptable, its availability is not a limitation
either. Because of ample production; it leaves the third vital marketing factor
affordability, how to make affordable for the majority of consumers with limited
b) DEFENCE MARKET:-
pharmaceutical and allied industries, India with her sizable dairy industries
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The program organized dairy co-operative at the village level providing and
production enhancement of city set dairies. the main thrust was to setup dairy co-
operatives in the milk sheds, so as to link them to the four metro cities
the milk market were to be captured. The overall objective was a modern dairy
industry in India, which would adequately meet the country’s need for milk
product.
Removing the middlemen between the producer and consumer by the procurement
of the mild directly by the producer, directly through village co-operative society.
structure of societies, union & federation .the program was approved by the
Government of India for implementation during the sixth plan period, with an
outlay for Rs.273 crores. An about US$ 150 millions was provided by the World
Bank & the balance in the form of commodity assistance from the expanded
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number. The peak milk procurement increased to a level of 79-lakh liters per day
The third phase aimed at consolidated gains of earlier phases. The main focus of
federation & adopting the salient institutional characteristic of the “Anand Pattern
Co-operative.” The Operation Flood –III program was funded by a World Bank
Credit loan of US$ 365 million, Rs.222.6 crore of food aid by EEC & Rs. 207.7
crore by NddB’s own resources. The program covered some 170 milk shades of
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COMPANY PROFILE FOR
LUCKNOW
PCDF was formed in 1962 with the aim to develop organized dairying in the State
on Cooperative lines PCDF's is a cohesive body that successfully does away with
established between the producer and the ultimate consumer . This Apex Milk
Cooperative draws its inherent strength from the farmers committed participation ,
Over the years PCDF has expanded, diversified ,channelized into new areas , over
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However, PCDF's achievement cannot be quantified in mere statistics . Its real
sense of pride lies in the fact that its farmer members are heading surely and
steadily towards a prosperous future and the knowledge that its consumers reaffirm
their faith in Parag year after year. It is in this context that PCDF's success is to be
measured.
people who have willingly pooled in resources and energies to pursue a common
of the total milk production of India. In the year 2010-2011, the total milk
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Successful efforts gave way to formation of Lucknow Milk Union in 1938-
the only Milk Union in the country -giving Uttar Pradesh the credit of being
PCDF was the chosen agency to implement the World Banks prestigious
At present PCDF lends its support and services to 6,00,000 rural milk
producers through 59 District Milk Unions and about 13,500 Village Dairy
Parag is the brand name for a range of milk and milk products including-
Milk , Skimmed Milk Powder, Whole Milk Powder, Butter , Ghee, and an
A Jersey Cattle breeding unit is located in Rae Bareilly, for rearing of Jersey
Bulls
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At FFHC Unit in Moradabad ,Frozen Semen Doses of Good quality breed of
The dairy development in co-operative sector U.P. has long history with Karta co-
operative milk society of Allahabad organized in 1917.milk industry for the first
was an autonomous body where milk was brought from nearby villages and
(P.C.D.F.) was established by the government. The aim was to remove the
middleman from transactions between producers and consumers and also to help
the backward classes and villagers economically. The P.C.D.F. took charge of
LMU and other co-operative units of the state after its establishment. Its major role
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The P.C.D.F’s functions are based on the objectives of the operation flood, which
are to increase the production of milk from matching animals, by providing the
technical inputs to the producers and to arrange the supply of liquid milk products
LMU has about 400 workers and 100 staff members. The GM to LMU is appointed
by P.C.D.F. but LMU has its own members of board. There is another office
Dairy products are marked under the brand name “PARAG”. They have a
considerable market share in U.P. and other region in north and east. There has
private dairies who have introduced their own brand of milk products.
Amul products still have to face very tough competition in Lucknow “PARAG”
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NEW DEVELOPMENTS
Government also head away with the licensing provision of U.P. Milk Act, 1976
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which required a license for the processing capacity beyond 500 LPD. Now the
dairy industry in the state is being governed by the provision of MMPO, 1992
(milk and milk products order) where by the processing units with a capacity of
more than 75,000 LPD are required to register with the competent authority at the
Govt. of India level whereas the units ranging between 10,000 to 75,000 LPD have
to be registered with the milk commissioner Govt. of U.P. the units below 10,000
Providing concession at 1.5% the milk price to be paid by the processing units in
the state is creating a milk development fund. This fund will be used for providing
assistance to dairy industrialists, extend health cover and technical inputs , creating
additional processing facilities in the backward areas and holding national and
entrepreneurs in the dairy sector. A Dairy Consultancy Center has been set up by
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II.3About the Company Formatted: Centered, Indent: Left: 0.5", Space After: 12
pt
started collecting milk from village and supplied to Lucknow and local
Markets. This milk union continued function for about a decade; in the
Barabanki, Raebareli, Kanpur, Unnao, Sitapur etc. the milk was mainly
collected through contractors. 10 milk unions were also found at the same
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This programme was launched in Uttar Pradesh in 1972 and the
limited which was framed in the year. The basic idea was to replicate
development,
was set up under operation flood-1 programme with the specific purpose
conversion surplus milk into various dairy products. This dairy is situated
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Sitapur as envisaged under operation flood-1 scheme. Thus
feeder balancing dairy was obliged to receive entire surplus milk from the
Union Ltd was 49,300kg. With peak handing of 1, 04,950kg in the Feb.
for local consumers. The supply of milk was gradually extended to other
local markets.
Milk Union Ltd was to convert surplus milk into various dairy-products,
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programme has been undertaken by N.D.D.B. on turn basis. The target set
is as under:
Increasing the capacity of ghee plant from 1.m.t. to 4.m.t. per day.
1993 year. The liquid milk and products are selling in the market in the
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
In the year 1983 P.C.D.F. Ltd. started working under Operation Flood – II
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connected under Operation Flood – II, having the name Dugdh Utpadak
PARAG provides hygienic, nutritious milk and milk product. In the year
1983 Operation Flood – II scheme was launched, the main objectives of the
society).
To save the producers, villagers and the customers from the middle
man.
D.U.S.S. level finely it comes under the state level i.e. federation.
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BJECTIVES OF THE STUDY
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Chapter-2
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I. Organization Structure& Marketing Strategy
which are elected from Milk Union Boards. The Managing Director is the
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II. Products of Company
2.0 GHEE
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2.2 Sika Pack 1000 ML, 500ML
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9.0 Chhach 500 ml
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III. Product Nutritional Value
1. BUTTER:
It contains less than 80% milk fat and more than 15% moisture and high
buffalo milk with out the addition of salt, color or any preservative and is
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2. GHEE:
in to butter and then converted into ghee. Bulk of ghee derived from
buffalo milk because it is richer in fat that cow milk. In Parag surplus
mechanical stirrers and heated with steam till the moisture is removed.
3. PANEER:
is added to the boiled milk and the milk immediately gets adulterated and
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water is separated and paneer is obtained. It contains less than 50% fat of
4.OTHERS:
Skimmed milk powder, cake and khoya are other products produced by
Parag.
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5. FUTURE PRODUCTS:
Some new products like coffee power, ready to make ice-cream powder,
Skimmed milk powder - in 500 gm. cartons & 200 & 500 gm. plastic bottles
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V
Formatted: Font: 8 pt
V. Marketing Strategy
Marketing Department
V.1 Objective
with strong supply chain management and control the product price
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because it is most important aspect for consumer otherwise they will
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 distribution done through milk
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 customers all the activities which are done by the marketing supervisor
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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
fresh milk through the milk vans. Lucknow is the first unit which is selling
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
Product
Price
Place
Promotion
locations which hold the key to revenue recognition depends upon the
marketing strategy.
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Supply chain Management encompasses, planning, design, control and
business.
a) Pulling strategy
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The Company should use sales promotion method to attract the consumers
awareness.
b) Pushing strategy
high performance. This will help in providing the required push for the
purchase. The retailers are not satisfied with the commission providing by
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VI.3 Pricing Strategy
and then set accordingly prices. Dugdh Sangh should make its products
visit the market on a periodical base to give the direct feedback on the
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so company must provide an inspector who has full power to replace
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Chapter-3
Research Methodology
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I. METHODOLOGY OF THE STUDY
Research:
The study of research method provides you with the knowledge and skills
you need to solve the problem and meet the challenge of the fact based
problem.
3. STATEMENT OF PROBLEM.
4. RESEARCH OBJECTIVES.
5. PRELIMINARY INVESTIGATION.
6. FOCUS ON STUDY.
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7. STUDY DESIGN.
8. SAMPLING.
9. NATURE OF DATA.
11.SURVEY INSTRUMENT.
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1. The satisfaction level of consumer. The study based on the
not.
Collection of data:
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Book
Magazines
Internet
Research papers
Govt. publications
milk.
The primary data have been collected with the help of a questionnaire
responses.
o Questionnaire survey
III.1 Sampling:
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I used random sampling because from a finite population refer to
the sample.
III.2 Sample:-
data
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Chapter-4
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Q1. Number of the family members?
(52%)
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Table no.-1
60
50
40
30
20
10
0
Two Three Four More than four
Interpretation-
families are having 4 members and 52% families are having more than 4
members.
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Q2. Family income annually?
b) 100000-300000 ( 52% )
c) 300000-500000 ( 7% )
d) Above 500000 ( 0% )
Table no.-2
60
50
40
30
20
10
0
Less than 100000 100000-300000 300000-500000 Above 500000
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Interpretation-
41% families have annual income less than 100000, 52% families have
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Q3. Consumption of milk in your family in liters?
Table no.-3
70
60
50
40
30
20
10
0
One liter 1.5 liters Two liters More than two liters
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Interpretation-
61% family uses 1 liter, 21% families uses 1.5 liter, 11% families uses 2 liters
a) Packed( 62% )
b) Loose( 38% )
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Table no.-4
70
60
50
40
30
20
10
0
Loose Packed
Interpretation-
Q5. If you like packed then which brand of milk do you like?
a) Parag( 25% )
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b) Amul( 20% )
d) Others( 5% )
Table no.-5
30
25
20
15
10
0
Parag Amul Namste india Others
Interpretation-
25% customers use parag brand, 20% use amul, 10% use Namaste India
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Q6. What type of Parag milk do you use?
a) Standardized (15%)
Table no.-6
40
35
30
25
20
15
10
0
Standardized Full Cream Toned Milk Loose Milk
Interpretation-
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15% customers use standardized milk, 35% use full cream milk, 30% use
a) Good (45%)
b) Average (50%)
c) Poor (10%)
Table no:-7
60
50
40
30
20
10
0
Good Average Poor
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Interpretation-
45% customers said parag milk quality is good, 50 % said average and 10%
said poor.
a) Easily ( 65% )
Table no:-8
70
60
50
40
30
20
10
0
Easily Not easily
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Interpretation-
65% customers said parag milk is easily available while 35% customers said
a) Yes( 67% )
b) No( 33% )
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Table no.-9
80
70
60
50
40
30
20
10
0
Yes No
Interpretation-
a) Quality (40%)
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b) Price (35%)
c) Availability (25%)
Table no:-10
45
40
35
30
25
20
15
10
0
Quality Price Availabity
Interpretation-
The reason that causes the consumers to purchase the PARAG product 40%
quality of the product, 35% price of the product and 25% the availability of
the product.
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Q11. Do you switch from one brand to another?
a) Yes( 40% )
b) No( 60% )
Table no.-11
70
60
50
40
30
20
10
0
Yes No
Interpretation-
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40% consumer switch to other product, while 60% consumers do not
a) Good( 60% )
b) Average( 30% )
c) Poor( 10% )
Table no.-12
70
60
50
40
30
20
10
0
Good Average Poor
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Interpretation:-
location?
a) Yes ( 65% )
b) No ( 35% )
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Table no.-13
70
60
50
40
30
20
10
0
Yes No
Interpretation-
65% of consumer wants more number of PARAG booths near their location
14.Do you check the expiry date of PARAG product, before buying these?
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a) Yes ( 70%)
b) No ( 30% )
Table no.-14
80
70
60
50
40
30
20
10
0
Yes No
Interpretation-
70% consumers check the expiry date before buying product, while 30% are
not.
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Problems
Major Problems
resources purchasing
Marketing problem
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1. There is no proper product price strategy adopted, so by this,
6. No brand aBBAssador.
higher.
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10. There is no relationship between shopkeeper/wholesaler for marketing
possible for Parag to open their booths in every area so they must
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Chapter-5
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I. Findings
are present. Among all Amul are the strongest competitors in the field of
butter and milk while Anik and Parag sell ghee but in the field of packed
milk Parag is lacking behind. If brand like Amul are not taken seriously
definitely after few span of time they can take much share of Parag. So
Parag should take this matter seriously. The supply of private milk product
is not constant.
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2. Parag product is sold more than other.
Parag product.
Hoardings.
Glow sign.
Poster.
Wall painting.
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Parag has increased the cost of skimmed, toned and lose milk by Rs 2 per
litre. These will now cost Rs 20, 28 and 30 respectively. The rate of full
cream milk has not been changed. But it is already beyond the reach of
many at Rs 36 per litre. The cooperative has introduced a new brand, super
standard milk (Rs 32 per litre), to compensate for high rates of full cream
milk.
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Conclusion:-
Consumer are willing to buy the parag indigenous product and they show
Table Butter, Paneer they first prefer “Parag” brand but due to non-regular
In case of Table butter they are likely to buy “ Amul ” brand because it is
regular available, obviously few time ago it was @1.00 more than Parag,
but now price is equal, also Parag’s butter is not available at every shop-
keeper.
brand is too little, thus in the first part consumer prefer to cable T.V.
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advertisement /news-paper, advertisement for increasing the sale,
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Chapter-6
Suggestions and
Recommendations
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SUGGESTIONS
The employee welfare scheme should be revised and it should consider the suggestions and
The dairy should introduce an incentive policy which motivates the employees to give their
Government insurance policy is also need a revision in order to provide more benefits to the
Extracurricular activities should be organized in the dairy after a fixed time period so that
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LIMITATIONS OF THE STUDY
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Limitations:-
Nothing in this universe is free from limitations and present project is not
from them, appropriate figure for relevant data and their interpretation
precisely this has been my personal experience while carrying out the
only so the area of research was limited which may affect the research
conclusion slightly.
Annual report and journals in the company was not readily available. Due
to time and budgetary constraint, the sample size was restricted. The sales
man at the outlets showed their discontent with the tight schedule.
People of the region were not concise about the survey, so they were not
much supportive.
Near about 30% population takes the service of servants to bring their
milk. From market and reason for their brand selection was not known.
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Many people do not know themselves why they use any particular brand
as their answer was “we use ………..brand because we like it” so the actual
reason behind their liking was not conformed. People not interested to fill
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BIBLIOGRAPHY
this project.
Websites:-
www.scribd.com
www.google.com
Magazines:-
Magazines
Business Today
Books:-
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QUESTIONNAIRE
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Questionnaire
Name-...............................
Address-...........................
Mobile no-.......................
Occupation -.....................
a) Two c)Four
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b) 100000-300000
c) 300000-500000
d) Above 500000
a) One liter
b) 1.5 liters
c) Two liters
a) Packed
b) Loose
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Q5. If you like packed then which brand of milk do you like?
a) Parag
b) Amul
c) Namaste India
d) Others
a) Standardized
b) Full cream
c) Toned milk
d) Loose milk
a) Good
b) Average
c) Poor
b) Not easily
a) Yes
b) No
a) Quality
b)Price
c)Availability
a) Yes
b) No
a) Good
b) Average
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c) Poor
location?
a) Yes
b) No
Q14.Do you check the expiry date of PARAG product, before buying these?
a)Yes
b)No
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BIBLIOGRAPHY
Formatted: Centered
Some of the website and magazines referred by me to complete
this project.
Websites:-
www.google.com
Formatted: Centered
Magazines:-
Companies Brochures & Manuals. Formatted: Centered, Add space between paragraphs of the
same style
Magazines
Business Today
Formatted: Centered
Books:-
Marketing Research - G.C Beri Formatted: Centered, Add space between paragraphs of the
same style
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Marketing Management- V.S Ramaswamy & S.
Namakumari
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