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Project on PARAG MILK

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SUMMER TRAINING PROJECT REPORT ON STRATEGIES TO BE ADOPTED BY PARAG
TO COUNTER AMUL MILK SALES IN
LUCKNOW
Submitted for the partial fulfillment of the requirement
For the award of degree
Of
MASTER OF BUSINESS ADMINISTRATION (MBA)
Degree Programme of U.P. Technical University, Lucknow 2008 – 2010 -: Submitted
By :- AKHILESH PRATAP SINGH
M.B.A. IIIrd Sem
Roll. No. 0812870005
-: Submitted To :- BHARAT INSTITUTE OF TECHNOLOGY Partapur By pass Meerut
(Affiliated to U.P. Technical Universuty Lucknow)
TO WHOM IT MAY CONCERN This is certify that Mr. Akhilesh Pratap Singh is a
bonafide student of MBA third semester in our institute. He has submitted this
project report titled “Strategies To Be Adopted By Parag To Counter Amul Milk
Sales In Lucknow”to fullfill the requirement of UPTU. Teacher Guide Prof. R.C.
Shard Mr. Sunil Yadav (Director Management) BHARAT INSTITUTE OF TECHNOLOGY
(Approved by AICTE, Recognized by U.P. Govt. & Affiliated to U. P. Technical
University, Lucknow) Bye-Pass Road, Partapur, Meerut – 250 103 Phone: Off. –
(0121) 6531892 (0121) 6531892 , 6533991, 3263721 Fax: 0121 –
2967001 E-mail: dg@bitmeerut.edu.in Website: www.bitmeerut.edu.in
DECLARATION I, AKHILESH PRATAP SINGH, hereby declared that the research work
presented in this report entitled “STRATEGIES TO BE ADOPTED BY PARAG TO COUNTER
AMUL MILK SALES IN LUCKNOW” for the fulfillment of the award of Master in
Business Administration (M.B.A.) from Uttar Pradesh Technical University
(U.P.T.U.), Lucknow is based on my work during the summer training in theLUCKNOW
PRODUCER’S CO-OPERATIVE MILK UNION LTD. The project embodies the result of
original work and studies carried out by me and the contents of the project do
not form he basis for the award of any other degree to me or to anybody else.
Date: (AKHILESH PRATAP SINGH) MBA (3rd semester) Roll No. (0812870005)
ACKOWNLEDGEMENT I am thankful to management to study the “Strategies to be
adopted by PARAG to counter AMUL milk sales in LUCKNOW” for granting the
permission, corporation and valuable information for competition of this
project. No words are enough to thank Mr. D.P. SINGH (Manager marketing) andMr.
U.N. SINGH (Manager adm./pers.) LUCKNOW PRODUCER’S CO-OPERATIVE MILK UNION LTD
who not only inspired me to work on this project but also accepted to guide me.
In spite of heavy responsibilities and busy schedules, they always managed time
to provide proper guidance. Last but not the least, I would like to say that my
parents and friends for giving me their constant support and encouragement in
completion of my project. (AKHILESH PRATAP SINGH) MBA (3rd semester) Roll No.
(08128700 PREFACE
One must have a contemporary understand of this dynamic world to survive or
proper therein. Never in the past has the role of manager in India as crucial
and exciting as now. The on going economic reforms programme has created
infinite opportunities. There has been an increase in milk income gradually
development have broadened the knowledge of consumers. There are now become
choosy resulting in winners & looser at the same time winners those who monitors
needs, identifies opportunities and create value. It is the market place not the
factory that ultimately determines which company will succeed. Marketing is
practiced not only by manufacturing concern & their channel members but all
kinds of individuals and organization. No politician can get the required votes
to win and no “resort” the needed tourist to flourish without developing and
carrying out the sound marketing plans. Authentic market practice is not the art
of selling what you make so much as knowing what to make. It is the art of
identifying and understanding customer’s needs and coming up with solution that
satisfy them and produces riches for firm’s profitability. As we all know,
future is always uncertain. More precisely when there is volley of brilliant
competitors and each wants to be the market leader. So in the light of intense
competition satisfaction through product innovation maintaining
the standard quality their in, failing which no amount or deal of promotional
measure or scheme can compensate at length. Competitive forces have compelled
the companies to focus on specific segment of the market with frequent product
innovation and rather new products and launching thereof with greater
confidence. The present study gives special emphasis on the various strategies
to be adopted by Parag to counter Amul sales in Lucknow. The entire study has
been divided into chapters and further subdivided into segments from each
dealing with a separate aspect in a simple and lucid style and clarification has
been given top priority throughout the project. EXECUTIVE SUMMARY
The objective of the project is to study market potential of Parag milk and to
know the consumer’s perception about Parag milk. The report contains a brief
introduction of D.U.S. limited and its various products. Parag is the largest
player in the milk sector. At Parag quality is a relentless commitment to
continuous improvements in products, process and systems to provide consistent
quality products to meet our customer’s requirement worldwide. This report
clearly mentions objectives of study and research methodology utilized. Research
design used in this project is exploratory and the sources of information are
both of primary data and secondary data. The data collection method used is
structured non disguised questionnaire in which the types of questions. Used are
open ended. Multiple choice, close ended and dichotomous. The report contains a
detailed view of the tasks, which have been undertaken to analyze the market of
Parag milk. Various set of questionnaire have been prepared to know perceptions
of retailers and consumers about Parag milk. Some of the research areas are –
Gomti Nagar, In. The comprehensive and intensive marketing activities at D.U.S.
Ltd. Lucknow are control by manager marketing. Incharges marketing of the unit
milk itself is the complete meal. The route or supervisor duty is to see
whether the milk and milk products are properly distributed to the agents of
Parag in due proper time. They observe the market trend the competitor’s
activities the difficulties of market. They try to penetrate in new market area
where the agents of Parag do not exit. At the present the distribution of milk
and milk product is done through Tata 407 vehicles which are arrange by the
company.
In Lucknow Amul is strongest competitors in the fields of milk. Mostly agents
as well consumers say that the quality of Parag will is much better when any
other brand packed milk in Lucknow. Capturing a dominant share of the urban milk
market hitherto served by a multitude of small milk vendors. Creating a
procurement network of link numerous caperative producer societies in different
milk shed area to the organized urban diary industry. Diary cooperative
societies at the village level handling procurement of milk. Co-operative milk
unions at the district level engaged in processing and product manufacturing.
Predeshik co-operative diary federation (PCDF) at the states level charged with
coordinates of marketing. Removing the middlemen between the producers and
consumer by the procurement of the milk directly by the producer directly
through co- operative society. In D.U.S. Ltd. Lucknow at reception point of milk
from different societies milk is collected and basis test are carried out
quickly after cleaning. It is send for further processing finally after
pasteurization three types of milk obtain that is full cream milk, toned milk
and Janta milk. The route or supervisor duty is to see whether the milk and
milk products are properly distributed to the agents of Parag in due proper
time. The whole project has been a great learning for me to experience and
understand the market dynamics with respect to an milk products.
CONTENT STRUCTURE PART-1 (1) Introduction 2-4 (2) Company Profile 5-11 (3)
Industrial Profile 12-21 (4) Objective of company 22 (5) Product profile 23-32
(6) Rate of milk products 33 (7) Quality control 34-36 (8) Major Private
Companies 37 (9) Innovation 38-41 PART-2 (10)Objective of study 43-45
(11)Research Methodology 46-55 (12)Data analysis & Interpretation 56-76
(13)Finding 77-78 (14)Limitation 79-80 (15)Suggestion & Recommendations 81-82
(16)Conclusion 83-85 (17)Appendix 86-93 (18)Bibliography 94-95
PART - 1
Introduction AN INTODUCTION OF FMCG INDUSTRY The FMCG sector is a cornerstone
of the Indian economy. This sector can drive growth, enhance quality of life,
create jobs, and support penetration of technology. A vibrant FMCG sector can
boost agricultural product and export. It contributed to the exchequer
significantly, disperse technology across the value chain and usher in the
product innovation. This innovation can improve Indian Health standards.
Fast Moving Consumer Good (FMCG) industry has a long history. 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 definitional dilemma. In fact,
the industry is yet to crystallize in terms of definition and market, size,
among others. The definitional confusion that has marked the Indian FMCG
industry is getting confounded. Some others call it the CPG industry and some
even call it the PMCG industry. The Indian FMCG industry has suffered because of
the confusion. It is an industry which touches every aspect of human life from
looks to hygiene to palate. Perhaps defining as industry whose scope is so vast
is not so easy. The government is at crossroads not knowing how and where to
slot the Indian FMCG industry and unsurprisingly, the manner in which it has
treated an industry which holds tremendous promise as producer of goods that
pervade everyday life has been only callous. 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 are the reforms of the nineties. Post reforms, the
industries is excited about a burgeoning rural population whose income are
rising and which is a willing to spend on goods designed to improve lifestyle.
What is needed now is a change in the mindset of the mandarins, FMCG industry
-friendly legislation are the needs of the hour. It does not matter whether
changes are being brought about by dawning market realities or the ongoing
economic reforms. One thing is certain here: The Indian FMCG industry has a
promising future to look forward to.
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 graph for the MNC’s operating
in the Indian FMCG industry. Domestic companies are only beginning to make their
presence felt in the industry. It has taken tremendous consumer insight and
market savings for the FMCG players to reach where they are today. But, the
journey has only begun.
PROFILE OF THE COMPANY Name of the organisation LUCKNOW PROODUCER’S
CO-OPERATIVE MILK UNION LTD Address of the organisation 22, Jopling Road,
Lucknow Established 1938 Registration 23rd March 1938 First Dairy Inspector N.K.
Bhargava Place of Establishment Initialy at Charbagh, Shifted to Ganesh ji,
Presently at 22, Jopling Road, Lucknow Founder Raj bahadur Gopal Lal Pandya
Board Of Directors Mr. Gopal Pandya
Mr. N.C. Chaturvedi
Mr. Tej Shanker
Mr. Pushkar Nath Bhatt
Per Day Production Of Milk initially 4000Ltr Location Initially Charbagh Now
Present In 22, Jopling road, Lucknow Area of Distribution Initially- Bakshi ka
talab, Tewari Ganj At Present- entire District
ABOUT THE COMPANY The common brand name of the company is “PARAG” the meaning of
PARAG is the pollen of flower the slogan in the logo is: - PURE NATURAL & GOOD
HEALTH Parag milk shed is situated in the Lucknow, the capital of Uttar Pradesh
since independence it has formed part of the traditional supply line of
agriculture products from the village to the big cities rich in its milk
potential the milk shed has, in the source of last few decades been thoroughly
exploited by small traders and powerful contractors and well organized private
dairies. Thus, while such intermediaries were retaining large profits the rural
milk producers found their position deteriorating day by day. In 1950-a
co-operative milk supply union was organized in Lucknow , which started
collecting milk from village and supplied to Lucknow and local markets. This
milk union continued function for about a decade, in the mean time Lucknow milk
scheme was established by government of India in 1959-60 to ensure cheaper milk
to the local pollution of Lucknow. The scheme started operating through 12
chilling centers in Eastern Uttar Pradesh. These chilling centers were mainly
coated in thither district of Lucknow , Barabanki, Raebareli , Kanpur, Unnao,
Sitapur etc . The milk was mainly collected through contractors. 10 milk unions
were also found almost at the same time, around each chilling center. These
continued functioning in a rather lop-sided manner till 1977. Gradually all the
milk union almost become defunctioning and was supplying very little quantity of
milk during the years 1970-77. Obviously contractors had monopoly and collected
major share of milk which was either supplied to Lucknow or to the local
population of the city. This programmer was launched in Uttar Pradesh in 1972
and the implementing agency in the was 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 1972 organization of
societies in Lucknow district was taken up bar out, Mohanlalganj,Amausi blocks.
A spear head team from national dairy development board was posted in Lucknow ,
which started functioning from April 1978 with a team of 27 employees drawn from
Lucknow milk 198 milk procurement cooperative societies by the year 1981, when
the operation fllod-14 programme ended. Feeded balancing dairy, Lucknow
Producer’s Co-operative Milk Union Ltd was set up under operation flood-1
programmer 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 and processed the liquid milk procured from the then
milk shed comprising Lucknow, Raebareli, Barabanki and Unnao. The purpose of
establishing feeder balancing dairy, Lucknow co was to provide 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 oblized 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 powder plant capacity from 10 tones to 40 tones 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 Dugdh Utpadak Sahakari Sangh
(D.U.S.S.) Ltd. P.C.D.F. Ltd. takes royalty of common brand name PARAG and all
the important policy taken by Pradeshik Co- operative Dairy Federation Ltd. Who
monitors to all the D.U.S.S. Ltd. i.e. Lucknow , Kanpur, Varanasi. 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. Project on PARAG MILK
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