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, greater
was our effort to overcome it.
This project work, which is my first step in the field of
professionalization, has been successfully accomplished only
because of my timely support of industry guide. I would like to
pay my sincere regards and thanks to those, who directed me at
every step in my project work.

I am obliged to the head of department of management Dr.

GauravPande to provide us this summer training from out of
campus.
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 makes my way simple & easy.
 PREFACE

Summer Training Project Report is an important part of the

Management studies. It 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 theories explained in the book
and their practical implementations.
Research plays an important role in future building of an
individual so that we can 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 feel glad to get myself to do research
on topic “A Study on Marketing Strategy of Parag Milk in
Lucknow City”.
 EXECUTIVE SUMMARY

Introduction to the project in terms of objectives of study company profiles, company

policies which have been selected to be compared and about the product. Target

Companies: Parag Dairy

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

to switch over to other brand.

 TABLE OF CONTENT

Certificate ii

Declaration iii

Acknowledgement iv

Preface v

Executive Summary vi

Sr. No. Topic Page no.

Introduction 1-27
1.

Company profile 28-59

2.

3. SWOT Analysis 60-62

4. Scope of the Study 63

5. Objectives of the study 64-65

Research methodology 66-68

6.

7. Data analysis& Interpretation 69-82

Findings 83-85
8.

9. Recommendations 86-87

Conclusions 88-89
10.
Limitations 90-91
10.

11. Bibliography 92-93

 Certificate ii

Appendix 94-96
12.

CHAPTER-1
INTRODUCTION
 INTRODUCTION
STRATEGY
Strategy is important because the resources available to achieve these
goals are usually limited. Strategy generally involves setting goals,
determining actions to 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 advantages of the firm to the challenges of the environment. It is
designed to ensure that the basic objectives of the enterprise are achieved
through its proper execution by the organization.

Strategy can be further explained as:

 A plan or course of action or a set of decision/rules making a

pattern or creating a common thread.
 A pattern or common thread related to the organization’s
activities which are derived from the policies, objectives and
goals.
 Concerned with pursuing those activities which move an
organisation - from its current position to a planned future
position
 Concerned with the resources necessary for implementing a plan
or a predetermined course of action.
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 is to be adopted to accomplish
the overall objectives of the organization,

Characteristics of Strategy

1. Unified, Comprehensive and Integrated plan

2. Universal Applicability

3. Strategy Alternatives like Stable Growth Strategy, Growth Strategy,

Retrenchment Strategy, and Combination Strategy.

4. Strategy Review

5. Applicable to all Functional Areas like Marketing, Production,

Finance and Human Resources.

6. Allocation of Resources

7. Objective oriented

8. Related to Environment

9. Future Oriented

10.Levels of Strategy - Corporate, Business and Functional Strategy

 STRATEGIC MANAGEMENT
Strategic Management involves the formulation and implementation of
the major goals and initiatives taken by a company's top management on
behalf of owners, based on consideration of resources and an assessment
of the internal and external environments in which the organization
competes. Strategic management provides overall direction to the
enterprise and involves specifying the organization's 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 maintaining optimum management
practices.

PROCESS OF STRATEGIC MANAGEMENT

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
formulated strategy helps to marshal and allocate an organization's
resources into a unique and viable posture based on its relative internal
competencies and shortcomings, anticipated changes in the environment,
and contingent moves by intelligent opponents.
2. STRATEGY IMPLEMENTATION

It is important to ensure that the strategy is implemented effectively;

Strategy implementation is an important aspect of strategic management.
It is the sum total of 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 of programs, budgets
and procedures.

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 therefore, that strategy evaluation is
vital for an organisation’s well-being; timely evaluations can alert
management to problems or potential problems before a situation becomes
critical. Strategy evaluation includes three basic activities:
Examining the underlying bases of a firm’s strategy.
Comparing expected results with actual results
Taking corrective actions to ensure that performance conforms to plans.

BENEFITS OF STRATEGIC MANAGEMENT

1. Choice of strategy - strategic management helps the management
to select the best possible strategy.
2. Competitive Advantage - Innovation, after-sale-service and other
activities generate competitive advantage to the firms.
3.Corporate Image - Due to strategic management the performance
and image of the firms improve.
4.Organisational Efficiency - Efficiency is the ratio of returns to
costs. Due to Strategic management the firms gain higher returns at
lower costs.
5.Organisational Objectives - Strategic management enables a firm
to effectively implement strategies in all functional areas like
production, marketing, finance, human resources etc
6. Organising Resources - Strategic management helps in proper
allocation and utilization of resources.
7. SWOT Analysis - SWOT analysis helps the firm to keep pace
with the changing nature of the environment affecting the
organisation.
8. Facilitates Planning - Strategic management facilitates proper
planning of various activities in the organisation. The alternative
plans are analysed in terms of benefits and costs.
 LIMITATIONS OF STRATEGIC MANAGEMENT

1. Limitation of Assumptions - Strategic management is based on

certain premises or assumptions it can be unrealistic and cannot be
implemented effectively.
2. Problem in Analyzing Environment - organization may not clearly
analyse the opportunities and threats of the external environment.
3. Unrealistic Mission and Objectives - Strategic management may
not achieve success if the mission and objectives are not realistic.
4. Problem of Setting Targets- Shortfall in implementing a target may
result in frustration or de-motivation
5. Problem in Implementation - if the strategy is not implemented
properly then even an exceptional good strategy may not produce
desired results.
6. Lack of Evaluation - there may be lack of proper evaluation and
control which may render the process of Strategic management
unsuccessful.
7. Lack of Commitment of Lower Level - Strategic management
requires people with vision, expertise, commitment and dedication
which are rarely available for making organization successful.
8. More theoretical in Nature - Strategic management is a very
theoretical in nature.
 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 of action while policies are
required to act as guidelines to action. Environmental 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 and personnel. Strategies can be divided as basic, general,
departmental. Organisations frame strategies in al functional areas. The
functional areas include - Human Resource Strategies, Marketing
Strategies, Financial Strategies and Operational Strategies.
 TYPES OF FUNCTIONAL STRATEGIES

FUNCTIONAL STRATEGIES

OPERATIONA
HUMAN
MARKETING FINANCE L/
RESOURCE PRODUCTION

Human Resource Strategies

Recruitment and Selection Strategy

Training strategy
Performance Appraisal Strategy
Promotion strategy
Transfer Strategy
Compensation and Motivation strategy

Marketing Strategies

Product Strategy
Product Line (Multi product or diversified)
Development of Product
Other policies (Packaging)

Pricing Strategy

Skimming
Rapid skimming- high price heavy promotion
Slow skimming-high price low promotion
Penetration
Rapid Pricing - low price heavy promotion
Slow penetration- low price low promotion

Follow leader pricing, differential pricing

Distribution Strategy

Area of distribution, training of dealers

Promotion and market research Strategy

Advertising, media selection.

Financial Strategy

Use Fixed capital

Utilization of funds
Framing Capital structure-equity, preference etc
Provision- future needs.

Operational Strategy

Capacity for production

Size and location of plant
Technology and modernization
Quality of products > Research and development
MARKETING STRATEGY:

Marketing strategy is the goal of increasing sales and achieving a sustainable

competitive advantage. Marketing strategy includes all basic and longterm 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 partially planned and
partially unplanned. Strategies are dynamics 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 planned and developed in consultation
with your team. It is a wide-reaching and comprehensive strategic planning tool that:
describes your business and its products and services

explains the position and role of your products and services in the market

profiles your customers and your competition

identifies the marketing tactics you will use

Allows you to build a marketing plan and measure its effectiveness.

5 key of Marketing Strategy concepts -

Product Positioning and Product Differentiation — it influence how consumers

perceive a brand's characteristics relative to those of competitive offerings

 Environmental Analysis - it is the assessment of the external forces and how they

are changing that will influence the firm, its product and its customer, and that

create threats and opportunities.

Marketing Research - it applied consumer research designed to provide

managers with information on factors that impact consumer’s acquisition,

consumption and disposition of goods, services and ideas.

Marketing - Mix Developments - it involves development and coordination of

activities involving Product, Pricing, Promotion and Distribution

Segmentation of Customers - it involves subdividing the market place into

distinct subsets of customers having similar needs and wants, each of which

can be reached with a different marketing mix.

• What does marketing strategy have to do with this materialization out of nothing?

Consumers do not buy what you sell. They buy what has value to them.

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?

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 / care?” To paraphrase Peter Drucker: Consumers do not buy what you sell. They

buy what has value to them.

• Why does marketing strategy matter?

Marketing strategy allows you to use pathways and

footholds that apply your limited marketing budget more
effectively.
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 you
can then do more of those.
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 speaking of
advertising, but the principle applies.
TYPES OF MARKEING STRATEGIES

There are four (4) main types of marketing strategies that businesses can apply in marketing

their products or services.

Market Leader Strategies

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
where your product is not known.
Defending the market share you are in control of is the second strategy. The most
effective ways of defending your current market is by capitalizing on improving the
quality of your products to be able to retain consumers. Market segmentation helps in
defending your market share.
The third strategy is to expand your market share. To expand your market share you
need to aggressively counter completion. A business can deal with completion by doing
what your competitor does not.
Market Challenger Marketing Strategy

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 the

weaknesses of their competitors as their selling point.

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.

 Market Follower Marketing Strategy

The market follower depend waits for his competitors to identify markets and carry out

research consumer preferences. As a follower, you need to be keen your competitor's

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 weaknesses

to better your products.

 Some more types of Marketing Strategies

Marketing is the important aspect of an organisation. The success of the organisation is

largely attributed to the performance of the marketing. Therefore there must be suitable

strategies

PRODUCT STRATEGY
Every organisation must have appropriate product strategy. The product
strategy enables to take decisions in respect of
Product Line/Mix
A company may follow either a single product strategy or a multi-product
strategy. A company may concentrate on core product line or a diversified
product line business.
Development of new products
A firm must decide about the development of new products or modified
products to face the competition in the market and to meet the needs and wants
of the customers.
Other Product policies
A firm must decide on other product policies in respect of Policies relating to -
product packaging, Product Positioning, Branding and Brand extension.
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,
the nature of consumers, objectives of the firm etc.

• Skimming pricing strategy

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.

• Penetration pricing strategy

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.

• Other Pricing strategies

There are several other pricing strategies such as - follow the leader pricing. Standard

pricing, Differential pricing, Trial pricing, Probe pricing.

PROMOTION STRATEGY
A firm must frame policies in respect of promotion. The various promotion
strategies are in respect of -
Advertising Strategy
A firm must frame strategy in the area of advertising in respect of - o Advertising
budget strategies - brand-wise, area-wise, period-wise and media- wise.
o Media scheduling strategies - bursting, flighting, pulsing etc. o Media Selection
strategy - depending upon nature of product, competitors, advertising, consumers.

Sales Promotion Strategy

A firm must give proper emphasis on sales promotion techniques. Therefore a
firm must frame sales promotion strategy in respect of -
o The amount of funds to be spent on sales promotion techniques like discounts,
exchange offers, free gifts, samples etc. o Decision on areas like after-sale-service,
guarantees etc
 o Duration and timing of sales promotion offers - whether during festival
periods.
o Products or brands and the market areas which needs to be given more focus
for sales.

Publicity

Publicity plays an important role in promotion of goods and services.

Publicity is gaining public visibility or awareness for a product, service or

your company via the media. Therefore a firm needs to frame proper publicity

strategy in respect of -

o The media to be concentrated for publicity, o The period or timing of publicity,

o The relationships with various media people,
o The amount of funds to be allocated for publicity purpose, such as on event
marketing during product launch, gifts t the media people etc

Personal Selling Strategy

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

an important role in promoting the sale of products, especially in the case of

industrial goods.

Therefore proper decisions must be taken in respect of -

o The number of sales force, selection and training. o The compensation to the sales

force. o The products, which require personal selling efforts. o The markets or areas

where personal selling is required etc.

Marketing Research Strategy

Marketing research plays an important role in marketing of goods and services.

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

relating to marketing products and services. A firm must decide in respect of - o The

products which requires market research o The markets where marketing research to be

conducted.

o The type of marketing research such as sales research, product research, consumer

research, pricing research etc.

o The amount of funds to be invested in marketing research o

The duration and timing of marketing research.

o Whether marketing research to be conducted in-house, or by an external agency. o

If in-house selection and training of marketing research staff.

DISTRIBUTION STRATEGY
A firm must frame strategy in respect of distribution. The distribution strategy
needs to be framed in respect of -
o Channels of distribution - whether direct channels or indirect channels. o Areas
of distribution - whether local, regional, national or international. o Dealers
network - the number of dealers, area-wise, product-wise. o Dealers training -
training to the staff of dealers, especially in the case of consumer durables so that
they are familiar with the features and operations of the product.
o Dealer’s incentives and compensation - commission to be paid to the dealers
and additional incentives to push the sales in the market.
 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
company. A marketing strategy is the foundation and key element to achieving success.
This is all possible because marketing saves time and helps business owners to define
their product and let potential consumers know they exist.

Increase in Sales & Expansion of Business

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 compete with you.

Increase in Profit
Effective implementation of marketing strategies enables a company to achieve its
organisational objectives such as increase in profit and increase in market share. The
company gains higher returns at lower cost.

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 into the
future goals of the company, and gives step-by-step directions on how to achieve those
goals.

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
company improves in the mind of various people.

Out-flanking Your Competition

With knowledge gained from identifying your best customer profile you can create a
core marketing message that will differentiate you from your competition.
 Make it easy for them to find You
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
redirect them to your website.
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 consumers into
navigable segments. These segments can then be addressed individually so that your
marketing message is attractive to each
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 wrong

audience using an inappropriate medium would be a serious and costly mistake. So it is

important to do your research beforehand and keep your costs to a minimum.

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 disadvantage of
marketing here is the risk of time wasted for an unsuccessful campaign.

Failure
An obvious disadvantage to a promotional strategy is its potential for failure. You 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 expert
advice from a marketing consultant can help maximize your chances for success, but
nothing’s guaranteed.

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.

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
hunt for bargains. Converting bargain hunters to permanent customers depends on
developing brand loyalty.
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 your
time and money.
 CHAPTER-2

COMPANY PROFILE
COMPANY PROFILE

Profile of the Company

NAME OF THE ORGANIZATION LUCKNOW PRODUCER’S CO-OPERATIVE MILK UNION

LTD.
ADDRESS OF ORGANIZATION 22 JOPLING ROAD LUCKNOW

ESTABLISHED 1938

REGISTRATION 23rd MARCH 1938

FOUNDER Mr. RAJ BAHABUR GOPAL LAL PANDYA

BOARD OF DIRECTOR Mr. GOPAL PANDYA

Mr. N.C.CHAURVEDI
Mr.TEJ SHANKAR
Mr. PUSHKAR NATH BHATT
NAME OF THE ORGANIZATION LUCKNOW PRODUCER’S CO-OPERATIVE MILK UNION
LTD.
LOCATION INITIALLY CHARBAGH,
NOW PRESENT IN 22, JOPLING ROAD, LUCKNOW.

AREA OF DISTRIBUTION INITIALLY BAKSHI KA TALAB,TELI BAGH,SOUTH

CITY,TEWARIGANJ, AT PRESENT ENTIRE DISTRICT
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
local population of Lucknow. The scheme started operating through 12 chilling 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, around
each chilling centers. These continued functioning in a rather lop-sided manner till
1977.
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 august
September 1972organization of societies in Lucknow district was taken up 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
operation fllod-14 programme ended.
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 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 commissioned
in April 1978.

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

remunerative market for milk produced in the milk shed comprising district of

Lucknow, Barabanki, Raebareli, Kanpur and Sitapur as envisaged under operation

flood-1 scheme. Thus feeder balancing dairy was obliged to receive entire surplus milk

from the rural areas, through a network of milk coop. In 1978-79 the average handing

of milk per day at FBD-Lucknow Producer’s Co-operative Milk Union Ltd was

49,300kg. With peak handing of 1, 04,950kg in the Feb.

In April 1981 Lucknow Producer’s Co-operative Milk Union Ltd launched pasteurized

whole milk packed in polythene sachet for local consumers. The supply of milk was

gradually extended to other local markets.

As the basic idea of establishing FBD-Lucknow Producer’s Co-operative Milk Union

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 butter

was started from April 1981.

In view of milk production procurement and marketing potential of Lucknow

Producer’s Co-operative Milk Union Ltd, and expansion programme has been

undertaken by N.D.D.B. on turn basis. The target set is as under:

Increasing processing capacity from 1 lack to 3.5 liters per day.

Increasing power plant capacity from 10 tons to 40 tons per day.

Increasing the capacity of ghee plant from 1.m.t. to 4.m.t. per day.

Increasing the capacity of butter manufacturing up to 16.m.t. per day.

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
Operation Flood - II, having the name DugdhUtpadakSahakariSangh (D.U.S.S.) Ltd.

PARAG provides hygienic, nutritious milk and milk product. In the year 1983
Operation Flood - II scheme was launched, the main objectives of the Operation Flood
were following-
To collect the milk directly from the producers (Villagers through society).

To insure the supply of quality milk collected from the villagers which being

sold in the market area of city.

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

finely it comes under the state level i.e. federation.

Organization Structure& Marketing Strategy

PCDF's management is headed by the Board of Directors, members of which are

elected from Milk Union Boards. The Managing Director is the chief executive of the
Federation. The Federation has the overall responsibility for the planning policies,
mobilization and utilization of financial resources, member and public relations as well
as liaison with agencies of the state and central government, financing institutions etc.

BOARD OF DIRECTORS CHAIRMAN

MANAGING DIRECTOR

CHIEF GENERAL MANAGER

Marketing MSD Operations

IC IC Ic

Procurement & Input Finance Administration

1C IC GM

Materials Engineering Quality Control

1C 1C IC
 PRODUCTS OF THE COMPANY

Liquid milk ( Packed)

Parag Gold (full cream milk)
Parag Taaza (toned milk)
Parag liter (skimmed milk)
Double Tonned Milk

Standard Loose Milk

Paneer
Butter
Parag Ghee
Parag Peda
Parag Dahi
Parag Flavored milk
Parag Mattha
Parag Chavai kheer
paragChhena Kheer
Parag besan laddoo
 Products of Company

S.no. Product Packing

1.0 Liquid Milk

1.1 PARAG Gold (F.C.M.) 5 Ltr, 1 Ltr, 500 ML

1.2 PARAG TAZA (Tonned) 1 Ltr, 500 ML, 180 ML

1.3 PARAG LITE (DTM) 500 ML, 200 ML

1.4 Parag Super Milk 500 ML

1.5 Homoganis edStanderd Milk Loose

1.6 Standerd Milk (Loose) Loose

2.0 GHEE

2.1 Poly Pack 1000 ML, 500ML, 200 ML

2.2 Sika Pack 1000 ML, 500ML

2.3 Tin (Agmark& Non Agmark) 15 Kg

3.0 Table Butter 500Gm,100Gm,50Gm,20Gm

4.0 Paneer 1 Kg, 200 gm, 100 gm

5.0 Peda 250 gm

6.1 Sweet 200 ml, 100 ml

6.2 Plain 200 ml, 100 ml

7.0 Flavoured Milk 200 ml, 100 ml

7.1 Plain 200 ml

7.2 UHT 200 ml

8.0 Curd Milk (Mattha) 200 ml

9.0 Chhach 500 ml

10.0 Kheer 100 gm

10.1 Rice kheer 100 ml

1.0 Liquid Milk

10.2 Chhenakheer 100 ml

 11.0 BesanLaddoo 250 gm

12.0 Khoya 1 Kg, 500 gm

13.0 Rasgolla 1 Kg, 500 gm, 200 gm

14.0 GulabJamun 1 Kg, 500 gm, 200 gm

15.0 Kalakand 1 Kg, 500 gm, 250 gm

16.0 Rajbhog 500 gm, 250 gm

Product Nutritional Value

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.

GHEE:
About 43 % of total quality of milk produced in India is manufactured first 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 butter is melted in steam jacket kettles.
Which are equipped with mechanical stirrers and heated with steam till the moisture is
removed.
PANEER:
In Paragpaneer is produced by the traditional method in which citric acid is added to
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.
FUTURE PRODUCTS:
Some new products like coffee power, ready to make ice-cream powder, baby food
and other milk drinks are in testing stages.
PARAG， S MILK PRODUCTS:
Butter available in 20gm, 100 gm and 500 gm packs.
Pure ghee available ^ kg.
Paneer available in 100 gm.
Skimmed milk powder - in 500 gm. cartons & 200 & 500 gm. plastic bottles
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
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
About the Marketing Department
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 distribution done through milk van in whole Lucknow city.
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
morning.Insulated vans maintain lowest temperature up to the customers.Lucknowunit
supply hygienic, fresh milk through the milk vans. Lucknow 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,

which is known as marketing mix.

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
Why SCM strategy is important for an Organization?
Supply chain management strategies are the critical backbone to Business
Organizations today. Effective Market coverage, availability of products at locations
which hold the key to revenue recognition depends upon the effectiveness of supply
chain strategy rolled out. Transportation network design and management assume
importance to support sales and marketing strategy.

Supply chain Management encompasses, planning, design, control and implementation of

all business processes related to procurement, manufacturing, distribution and sales
order fulfilment functions of a business.
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

Pulling strategy
The Company should use sales promotion method to attract the consumers like off
discount coupons, poster of pleasing personality and creative advertisement of Parag
should be given on television and radio. Advertising plays an important role in
creating image and top of mind awareness.
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
providing by Parag Company so company must increase commission on sale.
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

consumer’s wants and demand because in today’s marketing concept Consumer is a

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 good

retailers. Facility of replacement of milk is very time consuming so company must

provide an inspector who has full power to replace the milk at the retail point.
ORGANIZATION PERFORMANCE

ESTABLISHMENT OF ORGANIZATION:

• . . . . rd

The organization was established in year 1938 and was registered on 23 March 1938.

PARAG GETS NDDB QUALITY STAMP

Lucknow: Following the National Dairy Development Board’s (NDDB) seal of 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 dairy
products. The stamp of quality - a pneumonic seal-provided by NDDB on 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
has an added responsibility that could be proved through concerted efforts to
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.

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.

PRODUCTS OF THE COMPANY

Liquid milk
Parag gold (full cream milk)
Paraglite (skimmed milk)
Paragtaaza (toned milk)
ParagBesanladdoo
ParagMattha
ParagKheer
Paneer
ParagPeda
White Butter
Parag Curd
Table Butter
ParagFlavoured Milk
Parag Ghee
Parag Milk
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 Sitapur,
Shahjahanpura, Rai-Bareli, Barabanki, Sultanpur, Lakhimpur, Gonda, Basti and
Bahraich districts to the Lucknow Milk Union Dairy for processing and subsequent
supply in the state capital.

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
1,44,992 liters per day till 30th Nov 2008.

Consequently, the sales turnover of the Milk Union has grown from Rs. 64.07 crore in
the year 2002-03 to Rs. 120.75 Crore in the year 2007-08.
STRATEGIES IN DIFFERENT STAGES OF PRODUCT

Introduction Stages:> Rapid Skimming

Most of the market is unaware of the product.
When aware consumer are ready to pay high prices.
There is a threat of competition coming quickly.

Slow Skimming
Most of the market is aware of the product.
Market is limited.
When there is threat of competition.

Rapid Penetration

When market is very big.

Most of the market is unaware of the product.

There is threat of competition.

Consumer is price sensitive.

Growth stage:-

Strategy :

Improve product quality.

Enter new market segment.

Improve distribution coverage.

Reduce price to attract price sensitive

Maturity Stage

Strategy:

Market modification.

Product modification.

Marketing mix modification.

Down price and promotion.

Market demand is more.

Change in distribution channel.

Changing customer need.

More customers are willing to accept the product.

MARKETING DIVISION

The marketing division of LMU has been divided into two parts:-

Liquid milk marketing

Milk product marketing

The division is important because the marketing strategies of both are entirely different.
LTQUTD MTLK 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
main center point for the maximum milk demand.

MILK PRODUCT MARKETING

The milk product marketing division is handling the marketing of butter,

paneer, flavored milk.

The above products reach the ultimate consumers through one of the following

channels:

Stockiest sale
Concessionaire sale
♦ Clearing and forwarding agents
Stockiest sale in three system having two intermediaries viz.

Manufacture> Stockiest> Retailer> Consumers

Each of the intermediaries operates on the basis of margin on percentage of the
investment. In concessionaire sale only one intermediary is involved i.e.
Manufacture〉Concessionaire>Consum^r
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.

MARKETING STRATEGIES OF PARAG

The term marketing mix has been applied to the activity of combining marketing
methods to achieve profitable exploration of the market. A satisfactory marketing mix
is dependent upon the establishing of ones objective and preparation of a strategic
marketing plan, which incorporates the various appropriate methods of reaching these
objectives.

Following are some typical ingredients of the marketing strategies:

> Product quality

Cash discount
Advertising

Marketing research Product pricing

Product development

Product range

Sales force

Sales aid

After sales services

Stock level

Units of sale

Distribution arrangements

Credit

Packaging
BRAND LOYALITY

Brand loyalty is alive and well. It is the creation of emotional attachment to a

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.
 PROCUREMENT OF MILK

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.

The process of reception includes the following:

Unloading
Sampling
Testing
Weighing and recording

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.

STEURIZATION OF MILK:
The process of heating every particle of milk and milk products to at least 63
degree C and holding at such temperature continuously at least 30 minutes or heating
it to at least 71.5 degree C and holding at such temperature continuously for at least 15
seconds. All pasteurized milk shall be cooled immediately to a temperature of 10
degree C or less shall be maintained at the temperature until delivery.

MARKETING OF MILK AND MTLK PRODUCTS:

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
IRDA, Muzaffarnagar. Mostly ghee manufacturing in the DUSS is mostly purchased
by the Primary Milk Cooperatives Societies. Paneer and flavoured milk are also
prepared by DUSS on the demand basis. There is no regularly supply of these
products.

MILK PROCESSING

STEP 1:- MILK IN THE STORAGE TANK:

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
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
also take place during the process at the plant.

STEP 2-: STANDARDISATION AND PASTEURISATION:

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% for

semi- skimmed milk and 0.1% for skimmed milk.

STEP 3:- SKIMMED MILK:-

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
possible using skimmed milk, cream and combination of the two.
STEP 4:- CREAMS:

Cream is a by- product of the preparations for producing dairy products.

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
fullbodied 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 accepted, pasteurized, clarified, standardized, packed and dispatched for sale.

The quality checks includes:-

Cleanliness

Foreign particles

Organoleptic test

Soda test

Alcohol test

Urea test

Glucose test

Sugar test

Salt

Hydrogen Peroxide test

Formaline test

Starch

Sodium Thiosulphate

Mineral Oil test

B.R reading for refined oil

Milky activity
Clot on boiling
Phosphate test
Milk fat
Milk SNF
M.B.R.T. test for shelf life
Standard plate count
Coliforms
SWOT ANALYSIS

STRENGTHS

Demand profile: Absolutely optimistic

Margin: Quite reasonable, even on packed liquid milk.
Flexibility of the products: Tremendous with balancing equipment. You Can keep
on adding to your product line.
Availability of raw material: Abundant, Presently, more than 80% of Milk
produced is flowing into the unorganized sector. Which requires?
Proper capitalization.

Technical manpower: Professionally trained, technical human resource

WEAKNESSES

Perishability: Pasteurization has overcome this weakness partially. UHT gives milk
long life. Surely many new processes will follow to improve milk quality and extend
its shelf life.

Lack of control over yield: Theoretically, there is a little control over milk yield.
However, increased awareness of development like embryo transplant, artificial
insemination and properly managed animal husbandry practices, coupled with higher
income to rural milk producers should automatically lead to improvement in milk
yield.
Logistics of procurement: woes of bad road and inadequate transport facility make
milk procurement problematic. But with the overall economic improvement in India,
these problems would also get solved.
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 cold chain
linking the producers to refrigerator at the consumers home
Competition: With so many new comers entering this industry, competition is being
tougher day by day. But then completion has to be faced as a ground reality, the market
is large enough for many to carve out their niche.
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
tapped. Value addition: There is a phenomenal scope for innovation in products
development , packaging and presentation. Given below are potential areas of value
addition:-

Steps should be taken to introduce value added products like shirkhand, ice cream,
paneer, khoya, flavoured milk, dairy sweet etc.
This will lead to a greater presence and flexibility in the market place along with
opportunities in the field of brand building.
Addition of cultured products like yoghurt and cheese lend further strength, both in
terms of utilization of resources and presence in the market place.
A lateral view opens up opportunities in milk proteins through casein, caseinates and
other dietary proteins, further opening up export opportunities.\
Yet another aspect can be the addition of infant foods geriatric food and Nutritional.
Export potential: Efforts to exploit potential are already on. Amul is exporting to
Bangladesh, Srilanka, Nigeria and the Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of agriculture products in
general and dairy products in particular.

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.
SCOPE OF THE STUDY

To Understand the terminologies used in market by retailers.

Develop the usefulness in enhancing the usability of the product.

To know different selling skills at various situation of market.

To learn different strategies which are used by retailers in market to convince the

customers?
 OBJECTIVES OF THE STUDY
OBJECTIVES OF THE STUDY

To find out marketing strategies of Parag milk in Lucknow.

To identify various factor which motivates people to use Paragmilk .

To discover the main reason beyond shifting of customer from Parag milk to

other brands.
To find out customer satisfaction level regarding Parag milk.
•
CHAPTER-4

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

publication research, interviews, surveys and other research techniques. RESEARCH

DESIGN

A research design is the arrangement of conditions for collection and analysis

of data in a manner that aims to combine relevance to the research purpose
with economy in procedure. In fact, the research design is the conceptual
structure within which research is conducted. This research was descriptive in
nature.

DESCRIPTIVE RESEARCH:

The research undertaken will be a descriptive research as it was concerned

with specific predictions, with narration of facts and characteristics concerning
A Comparative Analysis on Promotional Strategies on Parag in Lucknow.

SAMPLING DESIGN
The following factors have been decided within the scope of sample design:
Universe of study: Lucknow.
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 carried
out on 100 respondents.
Sample Unit: In this project sampling unit consisted of the various individuals who are
the customers of ParagDairy.
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

Statistical tools to be used-pie charts, bar charts

CHAPTER-5

DATA ANALYSIS
Data Analysis and Interpretation

1) Quality rate of Parag Milk in lucknow

Excellen Goo Averag Poor
t d e
Parag Milk 31% 44% 19% 6%

Parag Milk
 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.
2) Milk brand is more demanding by the customer
Parag Milk 64%
Others 36%

■ Parag Milk

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.
 Excellent Good Average Poor
Parag Milk 25% 42% 18% 15%

Parag Milk

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.
8) Rate the pricing of Parag Milk.
High Reasonable Low
Parag Milk 18% 75% 7%

Parag Milk
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.
9)Parag Milk always available at your shop
Strongly Strongly
Agree Disagree
Agree Neutral Disagree
Parag Milk 32% 49% 5% 8% 6%

Parag Milk

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.
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

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.
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

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.
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

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
FINDINGS
FINDINGS

31% respondents replied that Parag Milk has excellent quality however, 44%
respondents replied that Parag Milk is good in terms of quality.
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 has good

packaging in terms of safety and attractiveness.

34% respondents replied that Parag Milk is excellent in terms of nutritive 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. 43%
respondents replied that Parag Milk is good in terms of taste.

28% respondents replied that Parag Milk is excellent in terms of healthiness however

46% respondents replied that Parag Milk is good in terms of 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 value for

money.
75%respondents replied that the pricing of Parag Milk is reasonable.

32%respondents were strongly agreed with the fact that Parag Milk always

available at their shops.

23%rated the promotional efforts of Parag Milk as very effective

56%rated the promotional efforts of Parag Milk as effective.

31% rated the TV advertisement of Parag Milk as very effective however 47% rated the TV
advertisement of Parag Milk.
• 25% rated the online advertisement of Parag Milk as very 54% rated the
online advertisement of Parag Milk.
RECOMMENDATIONS
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

most preference to the margin provided to them on milk (except coffee

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

criteria of institutional milk sales.

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

company in increasing its distribution network and Market share. Following

this both companies can buy the milk from local dairies taking over their

business which is substantial in terms of market share

Both companies should introduce a mascot for the milk. This will help in easy
Brand differentiation and Recognition.
Efficiency in distribution
Remove communication barriers and misconceptions between the Institutions
and distributors by effective communication with institutions time to time.
CONCLUSION
 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.
LIMITATIONS
LIMITATIONS

The sample size was restricted to hundred customers.

Resources like time and cost was a constraint.
The study was conducted in Lucknow city. So the findings and conclusion drawn
are applicable to Lucknow only.
The methods used for analysis and interpretation purpose may have some
limitations of their own and some errors can always creep in.
The sample size is small; hence the result cannot be generalized.
 BIBLIOGRAPHY
BIBLIOGRAPHY

Books

Kothari. C.R (2004): Research Methodology Methods & Techniques”，New

Age International Publishers, New Delhi, 2nd Edition.

Kotler, P. (2003) Marketing Management, 11th European edition, Prentice
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
 APPENDIX
QUESTIONNAIRE

Q1. How will you rate the quality of Parag Milk?

Excellent Goo Averag Poor
d e
Parag Milk

Q2. Which milk brand is more demanding by the customer?

Parag Milk
Others

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

Q8. How will you rate the pricing of Parag Milk?

High Reasonable Low
Parag Milk

Q9. Parag Milk always available at your shop

Strongly Strongly
Agree Disagree
Agree Neutral Disagree
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

Q12. How will you rate the TV advertisement 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