Research Report

ON

“Marketing Strategies of Branded Milk

Special reference to Amul & Parag”

1
 DECLARATION

I hereby ……. declare that the project titled “Marketing Strategies of

Branded Milk Special reference to Amul & Parag” Is an
original project done by me and no part of this project is taken from any source or
material published and not submitted to any other colleges and university later.

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 ACKNOWLEDGEMENT
With a deep sense of gratitude we express our heartfelt thanks to all the people

who have extended their assistance and provide us information during the tenure of

the projects.

We are highly obliged to Mr. Atul Kumar Singh, Dean of school of management,

Babu Banarasi Das University, for giving us an opportunity to study and enhance

our management skills.

A special word of thanks goes to Pooja Agarwal , Project Coordinator

whose help and guidance made this effort a bright success.

This project enabled us to learn the various managerial concepts and to get a

glimpse of the corporate world.

At this stage we could hardly move further without expressing our heartfelt

gratitude to all the respondents for their co-operation.

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 PREFACE

Practical Knowledge is an important suffix to theoretical Knowledge. One cannot merely depend upon
the theoretical Knowledge. Classroom lectures make the fundamental concept of Management clear.
They also facilitate the learning of practical Things. However, Classroom lectures must be correlated
with the Practical training situations. It is in the sense that practical Training in a company has a
significant role to play in the subject of business management. Its Emergence is of relatively recent
origin for success of any business and with in this relatively short period, it has joined a carry great
deal of importance.

Management in India is heading towards a better profession as compared to other professions. The
demand for professional managers is increasing day By day. To achieve profession competence,
manager ought to be fully occupied with theory and practical exposure of management. A
comprehensive Understanding of the principle will increases their Decision making ability and
sharpens their tools for this purpose.

As an essential part of our course, I got the privilege to have training in Amul the work has been
carried over a span of 1 months. The scope of the work under taken by me includes
“Marketing Strategies of Branded Milk special reference to Amul &
Parag”

Marketing management is a powerful tool for achieving organizational goals and gaining competitive
advantage. Research report training project goal is to help students become effective managers in
today’s competitive, global environment. Emphasis is given on discovering the challenge of both
managing and understanding the market and how the marketing strategy fits in the organization
“Marketing management is creating revolution in marketing of products and services by the
organization throughout the world.

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 EXECUTIVE SUMMARY
I felt privileged to be a part of. I did my summer internship training in Gujarat Cooperative Milk
Marketing Federation Ltd a FMCG sector company under the brand name “AMUL ”. My project title
is the “To study market penetration of Amul milk vis-a vis-Parag milk and suggest methods to
increase market penetration”.
The project basic objectives are to estimate demand of Amul Milk and Parag milk and promoting
Amul milk in Lucknow at the same time.
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. Also it is necessary to retain the existing customers apart from
attracting the new customers.
The Project is concern with to determine the penetration level of Amul dairy milk in Lucknow city.
The project included as part of MBA Programme and the project is done from June to August

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 INDEX

S.NO. TOPIC PAGE

NO.
Chapter 1-
 Introduction
1  Objective of the research
 Profile of industry 5-28

Chapter 2-
 Data collection and Analysis 29-67
 Findings
 Conclusions
2

Chapter 3-
 Suggestion 68-79
 Limitations of the Project
 Annuxure
3

4 Bibliography 80

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 INTRODUCTION TO THE TOPIC

Marketing Strategies of Branded Milk special reference to Amul & Parag:

Marketing strategies basically consist of four factors- Product, Price, Place,

Promotion.

 Product- The products are milk products of Amul & Parag.

 Price- Pricing is done on the basis of consumer’s pocket.

 Place- It was concentrated in the urban area in the past but now both

of these are expanding their market to the rural areas for rural

consumers.

 Promotion- Promotion is done through advertisements.

PRESENT STATUS OF AMUL AND IT’S PRODUCT

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Amul means priceless in Sanskrit. The brand name “Amul” from Sanskrit “Amoolya”
was suggested by a quality control expert in Anand. Variants, all meaning “priceless”,
are found in several Indian languages. Amul products have been in use in millions of
homes since 1946. Amul butter, Amul milk powder, Amul ghee, Amul spray, Amul
cheese, Amul Chocolates, Amul Shrikhnd, Amul ice-cream, Nutramul, Amul Milk and
Amulya have made Amul a leading food brand in India. Today Amul is symbol of many
things, of high quality products sold at reasonable prices,of a genesis of a vast
cooperative network, of the indigenous technology of the marketing savvy of a farmers’
organization and of proven model for dairy development.

Brief view of AMUL Butter

AMUL BUTTER is made from butter, common salt, permitted natural color – Annatto.

Composition:
Milk Fat 80%
Moisture 16%

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Salt 2.5%
Curd 0.8%
Calorific Value:
720 kcal. /100 gm.
Special Feature:
Made from fresh cream by modern continuous butter making machines. Marketed in
India since 4 decades.
Product Specification:
Meets AGMARK standards and BIS specification NO.IS:13690:1992.

LUCKNOW COOPERATION MILK

MARKETING FEDERATION

LCMMF: A PROFILE

Lucknow Cooperative Milk Marketing Federation is India’s largest food products

marketing organization. It is the state level apex body of milk cooperative in lucknow
which aims to provide remunerative returns to the farmers and also serve the interest of
consumers by providing quality product which is good value for money.
List of Products Marketed:

Bread spread:
 Amul Butter
 Amul lite fat bread spread
 Amul cooking butter

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Cheese Range:
 Amul Pasteurized Processed Cheese
 Amul Processed Cheese spread
 Amul pizza Cheese
 Amul Shredded pizza cheese
 Amul Emmental cheese
 Amul Gouda cheese
 Amul malai paneer
 Utterly Delicious Pizza

Mithaee Range:
 Amul Shrikhand
 Amul Amrakhand
 Amul Mithaee gulabjamum
 Amul Mithaee gulabjamum Mix
 Amul Mithaee gulabjamum Kulfi mix
 Avsar Ladoos

UHT Milk Range:

 Amul Shakti 3% fat milk
 Amul Taaza 1.5% fat milk
 Amul Gold 4.5% fat milk
 Amul Lite Slim-n-Trim Milk 0% fat milk
 Amul shakti toned Milk
 Amul fresh Cream

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  Amul Snopwcap Soft Mix

Pure Ghee:
 Amul Pure ghee
 Sagar Pure ghee
 Amul Cow ghee

Infant Milk Range:

 Amul Infant Milk Formula 1(0-6 months)
 Amul Infant Milk Formula 2(6 months above)
 Amulsary Milk Infant Food

Milk Powers
 Amul Full Cream Milk Powder
 Amulya Dairy Whitener
 Sagar Skimmed Milk Powder
 Sagar Tea and coffee Whitener

Sweetened Condensed Milk:

 Amul Mithainmate Sweetened Condensed Milk

Fresh Milk:
 Amul Tazza Tonned Milk
 Amul Gold Full Cream Milk
 Amul Shakti Standardized Milk 4.5% fat
 Amul Slim & Trim Double Toned Milk 1.5% fat

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  Amul Saathi Skimmed Milk 05 fat
 Amul Cow Milk

Curd Products:
 Yogi Sweetened Flavored Dahi(Dessert)
 Amul Masti Dahi(fresh curd)
 Amul Masti Spiced Butter Milk
 Amul Lassee

Amul Icecream:
 Royal Treat Range(Butterscotch, Rajbhog, Malai Kulfi)
 Nut-o-Mania Range
 Nature’s Treat
 Sundae Range
 Assorted Range
 Utterly Delicious

Chocolate & Confectionery

 Amul Milk Chocolate
 Amul Fruit & Nut Chocolate

Brown Beverage:
 Natramul Malted Milk Food

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Milk Drink:
 Amul Kool Flavored Milk
 Amul Kool Café
Health Beverage:
 Amul Shakti White Food

COMPANY PROFILE

 The moppet who put Amul on India's breakfast table

 50 years after it was first launched, Amul's sale figures have jumped from 1000
tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes
even close to it. All because a thumb-sized girl climbed on to the hoardings and
put a spell on the masses.
 Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old
housewife is out in the balcony drying clothes. From her second floor flat she can

13
 see her neighbours on the road. There are other people too. The crowd seems to
be growing larger by the minute. Unable to curb her curiosity Sheela Mane
hurries down to see what all the commotion is about. She expects the worst but
can see no signs of an accident. It is her four-year-old who draws her attention to
the hoarding that has come up overnight. "It was the first Amul hoarding that was
put up in Mumbai," recalls Sheela Mane. "People loved it. I remember it was our
favourite topic of discussion for the next one week! Everywhere we went
somehow or the other the campaign always seemed to crop up in our
conversation."
 Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you,
from strategically placed hoardings at many traffic lights. She is the Amul
moppet everyone loves to love (including prickly votaries of the Shiv Sena and
BJP). How often have we stopped, looked, chuckled at the Amul hoarding that
casts her sometime as the coy, shy Madhuri, a bold sensuous Urmila or simply as
herself, dressed in her little polka dotted dress and a red and white bow, holding
out her favourite packet of butter.
 For 30 odd years the Utterly Butterly girl has managed to keep her fan following
intact. So much so that the ads are now ready to enter the Guinness Book of
World Records for being the longest running campaign ever. The ultimate
compliment to the butter came when a British company launched a butter and
called it Utterly Butterly, last year.
 It all began in 1966 when Sylvester daCunha, then the managing director of the
advertising agency, ASP, clinched the account for Amul butter. The butter, which
had been launched in 1945, had a staid, boring image, primarily because the
earlier advertising agency which was in charge of the account preferred to stick to
routine, corporate ads.

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 In India, food was something one couldn't afford to fool around with. It had been
taken too seriously, for too long. Sylvester daCunha decided it was time for a
change of image.
 The year Sylvester daCunha took over the account, the country saw the birth of a
campaign whose charm has endured fickle public opinion, gimmickry and all
else.
 The Amul girl who lends herself so completely to Amul butter, created as a rival
to the Polson butter girl. This one was sexy, village belle, clothed in a tantalising
choli all but covering her upper regions. "Eustace Fernandez (the art director) and
I decided that we needed a girl who would worm her way into a housewife's
heart. And who better than a little girl?" says Sylvester daCunha. And so it came
about that the famous Amul Moppet was born.
 That October, lamp kiosks and the bus sites of the city were splashed with the
moppet on a horse. The baseline simply said, Thoroughbread, Utterly Butterly
Delicious Amul,. It was a matter of just a few hours before the daCunha office
was ringing with calls. Not just adults, even children were calling up to say how
much they had liked the ads. "The response was phenomenal," recalls Sylvester
daCunha. "We knew our campaign was going to be successful."

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500

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2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504

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 PRADESHIK COOPERATIVE DAIRY
FEDERATION LIMITED
:: PROFILE::
History of cooperative dairy industry in U.P dates back to 1971 when “Katra
Cooperative Milk Society” was set up in Allahabad, Lucknow Milk union was
established in 1938. It was first step towards organized dairy development programme
not only in U.P but all over the India. Hardoi Milk union milk was established in 1985.
In 1962, the PRADESHIK COOPERATIVE DAIRY FEDRATION was established
keeping in mind the aim to remove the middle man from transaction between producers
and consumers and also to help the backward classes and villagers economically.

INTRODUCTION OF THE ORGANISITION

Pradeshik cooperative dairy Federation is a pioneer milk production. With the main
objective of removing the middle man from transaction between producers and
consumes, its other objective are to increase milk production and buy the products of
the milk.
Keeping these objectives and aim in mind Pradeshik cooperative dairy Federation was
set up as a state level as apex body for launching cooperation flood. The government of
U.P also extends a helping hand in setting up dairies in different districts of U.P
recently; P.C.D.F has come as governing body for all dairies of the sate.
Operation flood 1, 2, 3 were started in U.P with the following objectives:

1. Removing the middle men between the producers and the consumers by the
procurement of the milk directly from the producers directly through village
cooperative society.

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2. To increase the production of milk from milking and animals by providing inputs
to the producers.

3. To arrange the supply of liquid milk in the major cities of U.P.

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ENTRODUCTION OF MARKETTING DIVISIONSThe marketing
Management of pradeshik cooperative Dairy Federation Ltd. has been divided into two
parts:

1. Liquid milk marketing

2. Milk product marketing
LIQUID MILK MARKETTING:
At present the liquid milk having brand name “PARAG” is being marketed through
local unit/milk union in major cities/motors on U.P and Delhi under the direction of
P.C.D.F ltd. Lucknow, Kanpur, Delhi, Varanasi, Meerut are the main center point for
max. milk demand.
The following types of milk are mainly marketed by P.C.D.F ltd.
 Whole milk(full cream) with 6% fat 9% S.N.F
 Toned milk with 4.5% fat and 8. % S.N.F.
 Janta milk with 0.5% fat and 9.0% S.N.F

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 MILK PRODUCT MARKETING
The project marketing division is handling the market of the butter ghee and dairy
whitener.
Apart from this, there are certain indigenous products being marketed .They are:
1. Milk cake in 50 gm & 100 gm.
2. Table butter in 20 mg. pack
3. Paneer 100 gm. Polypack, 500 gm. Polypack

DETAIL OF THE FUNCTIONAL DEPARTMENT OF THE

ORGANIZATION
PARAG

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REGIONAL MARKETTING OFFICES:

The marketing of parag product is monitored and effected through six region
marketing offices located at Lucknow, Rampur, Delhi, Merrut, Varanasi and Kolkata, a
regional manager(marketing) who has a certain area of office and also one warehouse
located in above towns.

Products are transferred from general manager (Marketing) at the head office to
the stockiest or carrying and forwarding agent and around their respective region.

A regional manager is assisted in his marketing function by the team of Sales

force whose basic task is to call on the retailer, book order, increase the no. of retailers
and study competitive environment. The entire Marketing operation is monitored at the
head office level under the supervision of General Manager (Marketing) through regular
reporting feedback received from the head office marketing staff at regular intervals.

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 ORGANIZATION STRUCTURE
PCDF has 10 divisions. Every division has managers who are responsible to general
manager. G.M. of every division is responsible to managing director. The divisional
heads of each division shall be responsible for the performance of there respective
division not only at the bead office but also in the units/unions and in the fields. These
offices shall not merely insure the achievement of the targets fixed and implementation
of systems for there functional but promptly attend to the problems of the units/unions.

The divisional heads shall discharge their duties with in the

policies frame laid down by the managing director & subject to his control &
supervision. Only important performance and control reports, policy matters, question
involving exception to approve policy, system development and other important matters
need to put up before the managing director.

Matters before approval and implementation, be routed through the Managing

service division(MSD), which will check the plan to see whether they are in conformity
with cooperate objective, and will see that they are in conformity with other plans and
systems and non contradiction occurs.

The divisional head should see the terms made by them and their officers
and adequate and purposive and designate link officers for each officer in their vision.
All letters to the NDDB shall before dispatch is send to the MSD, which will take
speedy clearance at the appropriate level. A copy of all such letters shall be the CPM
section of the MSD.

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PRESENT STATUS OF PARAG AND IT’S PRODUCTS

Today the working capital of this milk union is more than 2 lakhs per day as compared
to 220 liters per day at the beginning, it is expected that in the coming 45 yrs. the plan
will develop capacity of producing 5 lakhs liters or more milk per day.

In present time status of company parag goes on peak and better in the market than
other brand of products. Demand of parag products is more in the market.

Parag and its products are leader in the present name PARAG. Parag’s products are
different of different types liquid such as liquid milk pouches, like butter, Ghee and
Paneer etc.

PROJECT BACKROUND & INTRODUCTION

OF THE STUDY

General Introduction:

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Villages are the soul of India. The main occupation is farming here. It is an occupation
which is greatly affected by the hazards of natural agencies like heavy rains, hailstones,
drought etc. Hence farmer is also financially affected.

To overcome such problems the most suitable business is milk business, which will
definitely maintain and improve financial status of the farmers. The basic requirement
of this business is milk producing animals, which are the source of various farming
activities. In this work women and children can participate, hence no extra manpower is
required.

Uttar Pradesh is the most populated state in the country having a

population of 16.2 crores as per 2001census, of which 11.08% is urban. The decimal
growth rate of 1981-1991 was estimated at 25.15%.

According to be census of 1982 the total population of the state was 567
lakhs. There were 261.561 lakhs cattle,of which 61.15 lakhs are breed able. In case of
buffaloes against the total of 157.83 lakhs, 79.05 lakhs are breed able. The breed able
population of cows & buffalos was expected to increase to 67.10 lakhs & 87.00 lakhs
respectively by the terminal year of seventy five year plan. Milk production in the state
at beginning seventh five year plan through cows and buffalos alone was 72.60 lakhs
MT per annum which has now increased to 82.35 lakhs MT, by the end of seventh five
year plan milk production is expected to be 82 lakhs MT.

The dairy industry in India is going through major changes as a result of

liberalization policies of previous governments thus opening up the economy. This has
brought a greater participation of private sector.

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 According to census of 1950, the milk production was 20 MT. But in 1970
milk production began to rise & crossed 30 MT in 1980 & 580 MT in 1992.
The dairy sector was de-licensed in late 1991. There has been
evolutionary activity in private sector with many companies making a bid to enter in
this field. The private sector is also directly cooperating with government & cooperative
sector in the supply of milk to consumer in urban areas.
Dairying is a good source of income for small and marginal farmers. One
thing to be pointed out in this study is the possibilities of initiating dairy development
activities to bring about social and economic changes in rural areas.

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 THEORETICAL BACKGROUND OF THE STUDY

The environment in which milk product manufacturer are operating is changing faster
than ever before. The formulation of management discussion on ad hock basis which
may have worked reasonably well in former times where market condition and
technical progress moved comparatively slowly will no longer ensure survival, let alone
process milk product firm have come to the realization that the majority of their
management activity in the past was directed to day task, whereas to maximize long
their profit, management should be engaged in the task of forward planning. Current
planning reduces the need to make day to day discussion. It avoids the wasted efforts
involved in piecemeal making.

Many milk product manufacturers are oriented towards production rather

than sales. This has been a major factor in this comparative slowness with which such
companies adopt the marketing concept. But every business organization must become
market oriented because all its effort will be of no avail if its products fail to gain the
appeal of market.

CORPORATE PLANNING
Corporate planning has been defined as the planning of the development of all the
resources of the organization in coordinated manner. There are certain factors, which
the marketing manager should take into account when drawing up in his plan.

They are:-
1. His market

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 2. His resources
3. His objectives

A market assessment must take account of the situation of one’s competitors and
theirs probable future action. The particular services or product offered by competitors
should be considered together with there market share likely future trends.

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 MARKET PENETRATION

A company might consider whether its major branch can achieve deeper market
penetration, marketing more scales to prevent customer without changing products in
any way. So to increase the sales, the company might cut prices, increases advertising,
gets its product into more store or obtain better store displace and point to purchase
merchandising from its retailers. Basically the management should like to increase
usage by current customers of other brands to theirs.
SECENARIO OF DAIRY INDUSTRY
Dairying is a vital sub-section of agro economy and has a tremendous employment
potential along with nutritive support.India ranks among the five top milk-producing
countries of the world with production level
58. 6MT. The worlds largest integrated development programme of currently in its
third phase, links the rural milk producers with urban consumes on the cooperative
“Anand pattern”. Under the wide network, cooperatives are marketing liquid milk in
about 500 urban centers. Most of the village societies have been covered under animal’s
health facility service to increase the milk production. More than 26,400 dairy
cooperative societies have been marketing cattle feed.

PLACE OF DAIRY INDUSTRY IN NATIONAL

ECONOMY

The dairy industry of India now ranks second in the world, and milk products contribute
about Rs.8, 933 million to the national income. India is the current decade ranks forth in

28
the world in the matter of milk production will about 33 million tones (1981-1982) and
58.6 million tones (1992-1993). Nearly 60% is feeding claves. The milk production in
8th five year plan is targeted to 70 million tones.

INTRODUCTION OF BUTTER

Butter is essentially the fat of the milk. It is usually made from sweet cream and is
salted. However, it can also be made from acidulated or bacteriological soured cream
and salt less (sweet) butters are also available. Well into 19 th century butter was still
made from cream that had been allowed to stand and sour natuarally.The cream was
skimmed from the top of milk and poured into a wooden tub. Butter making was done
by hand in butter churns. The natural souring process is however, a very sensitive one
and infection by foreign micro-organism often spoil the result. Today’s commercial
butter making is the product of knowledge and experience gained over the years in such
matters as hygiene, bacterial acidifying and heat treatment, as well rapid technical
development that has lead to the advanced machinery now used. The commercial cream
separator was introduced at the end of the 19 th century; the continuous churn had been
commercialized by the middle of 20th century.
Definition and Standards :

 Milk Fat
-the lipid components of milk, as produced by the cow, and found in commercial milk
derived products, mostly comprised of trialglyceride.

 Butterfat

29
-almost synonymous with milkfat; all of the fat components in milk that are separable
by churning.
 Anhydrous milk fat(AMF)
-the commercially prepared extraction of cow’s milkfat, found in bulk or concentrated
form (comprised of 100% fat, but not necessarily all of the lipid components of milk).
Butter oil
-synonymous with anhydrous milk fat; (conventional terminology in the fats and
oil field differentiates an oil from a fat based on weather; it is liquid at room temp,or
solid, but very arbitrary).
 Butter
-a water-in-oil emulsion, comprised of >80% milk fat, but also containing water in the
form of tiny droplets, perhaps some milk solid-not-fat, with or without salt(sweet
butter); texture is the result of working/kneading during processing at appropriate temp.,
to establish fat crystalline network that results in desired smoothness(compare butter
with melted recrystallized butter); used as a spread, a cooking fat, or a baking
ingredient. The principal constituent of a normal salted butter are fat (80-82%), water
(15.6-17.6%), salt (about 1.2%) as well as protein, calcium and phosphorous (about
1.2%). Butter also contains fat-soluble vitamin A, D and E.
Butter should have a uniform colour, be dense and taste clean. The water content should
be dispersed in fine droplets so that the butter looks dry. The consistency should be
smooth so that the butter is easy to spread and melts readily on the tongue.
Another Definition of Butter:

Butter is produced by churning cream until the fat separates from the liquid
(Buttermilk) and the butter is in a semi solid state. Most butter sold today is from cow’s
milk but butter can also be produced from the milk of buffalo, camel, goat, ewe and

30
mares. It is believed that the nomads first discovered butter making by mistake. They
are said to have collected milk from cattle and goats, separated the cream from the milk,
and continuously mixed the cream until it turned into butter.

In North America butter must contain at least 80% butterfat, maximum of 16% water
and 2% milk solid. Some times a colouring agent (Annatto) is added to butter to give it
a deep yellow colour. Annatto is also used for consistency of colour as the natural
colour of butter can vary from a creamy white to golden yellow. The colour depends on
the diet of the daily cow. Regions that have the richest pasture land are said to produce
the best butter.

Butter is graded by letter code, and sometimes a numerical number, according

to flavour, color, texture, aroma and body. AA (93 score), A (92 score), and B (90 score)
are the letter codes or numerical scores. The characteristics to look for in good butter at
room temperature are that it is dense with no air bubbles, should not be lumpy, sticky or
brittle, and no sweating.
Butter comes in two forms salted and unsalted (sweet).
Unsalted butter has shelf life of around three months refrigerated, because it contains no
preservatives. Salted butter has a longer shelf life (up to 5 months) because salt acts as a
preservative. However, salt can overpower the sweet flavour of the butter and can also
mask any odours. The amount of salt added to salted butter can vary from manufacturer
to manufacturer and it is hard to know how much extra salt to add to your recipe. The
rule of thumb is that if you are substituting salted for unsalted butter in recipe, omit the
extra salt in the recipe (i.e. Omit ¼ teaspoon of salt per ½ cup (113 grams) of butter).
Most butter has expiry date on it. It should be stored well – wrapped in foil
away from any strong odours and in the coldest part of the refrigerator. Foil is used to
prevent exposure to light and air which can cause the butter to oxidize and become

31
stale. Check your butters freshness by cutting a small slice, and the outside of the butter
should be of the same colour as the inside. If the outside is of the darker color the
inside, the butter has oxidized. You can freeze the butter for around six months. Just
make sure you defrost the butter overnight in the refrigerator before using it. It is best
not to use butter that has frozen for baking, as freezing can affect the texture of the
butter and change its moisture content. When the butter thaws it can be grainy with
droplets of water.

Butter adds flavour and texture to your baking and helps to keep it fresh.
The temperature of the butter is very important in baking. When room temperature
butter is used in your recipe this means your butter should be between 65 degree F(18
degree C) and 70 degree F(21 degree C). This temp. allows the max. amount of air to be
beaten into your butter. This creaming or beating of your butter and sugar creates air
bubbles that your leavener (baking power or making soda) will enlarge during baking.
Most experts recommend 4 to 5 min. of creaming the butter for max. aeration.

Cold butter is used in some baking (pie crusts). With this method the butter is not
absorbed as much by the starch in the flavour and layers result when baking flakiness.

Whipped butter is butter that has air whipped into it to increase its volume. It should
never be used in baking. Whipped butter is easier to
spread even when cold.
Butter
1 cup = 226 grams
1 tablespoon = 14 grams
Clarified butter(beurre noisette)

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1 cup = 195 grams

Clarified butter is also called drawn butter. Simply defined, clarified butter is
unsalted butter that has the milk solid and water removed so all that remains are pure
liquid golden-yellow butterfat. The advantage of this type of butter is its long keeping
quality (several months refrigerated) and its high smoke point (can be used in firing
without burning). The disadvantage is that it doesn’t have that same wonderful rich
flavour of regular and unsalted butter(since the milk solid is removed) but it does have a
buttery taste than other oils. Ghee is clarified butter that has been cooked (both
refrigerated and at room temp.). Popular in India. Can be used for deep frying.

COMBINED STUDY OF AMUL AND PARAG

IT’S a milky war. Till now, Parag — a unit of the State-owned Pradeshik Cooperative
Dairy Federation (PCDF) — was the only dominant player in the city’s milk market.
But with the cooperative giant, Amul, launching here today, the stage is set for a battle
of turfs.

33
 Determined to maintain its control over the market, senior officials
of Parag — the brand name for the Lucknow Milk Producers’ Union — personally
supervised the distribution of milk packets from 4 am to 10 am today. Even the general
manager of the union, S K Prasad, was in attendance, keeping tabs on the competition
too.
The city’s demand for milk is to the tune of around 7 lakh litres per day,
which is met by ‘‘packed milk’’ as well as ‘‘loose milk’’ sold by local doodhiyas.
Parag sells around 1.25 lakh litres daily, with prices per litre
ranging from Rs 18 for full cream, Rs 14 for toned and Rs 10 for skimmed milk. It has a
distribution network of around 1,800 agents or retailers and 70 milk booths in the city.

Amul has also launched its product in the same categories, but its
full cream milk is priced at Rs 19 per litre. With Amul yet to develop a sales network,
Parag officials have accused it of poaching on its agents by offering allurements.

‘‘The poaching is a clear violation of the agreement with Amul

officials, who had assured that they would develop a market of their own by buying the
loose milk sold by doodhiyas,’’ claimed Prasad.

‘‘Yesterday, Amul officials handed over four packets of milk and

250 grams of sweets as a complimentary gift, with the assurance
that they would return tomorrow,’’ confirmed Amit Agarwal, a Parag retailer in the
Lalbagh area.

Charges are also flying about the quality of both the products.
While Amul claims purity as its USP, Parag claims to be fresh.

34
 ‘‘Lucknow’s consumers were being supplied milk made from milk
powder instead of fresh milk. Amul intends to bring fresh milk to the consumers’
doorsteps by purchasing milk from the cooperatives,’’ said R S Sodhi, chief general
manager (marketing), Amul.
But Prasad countered: ‘‘Amul milk is brought in tankers from its
plant in Palampur in Gujarat to Kanpur — a distance of about 1,500 km. In Kanpur, it is
pasteurised and packed at the old Roli milk plant in Dohti industrial area. Since the
entire process takes at least six days before the milk hits the market, consumers would
actually be supplied stale milk. On the other hand, Parag milk is pasteurised and ready
for sale within 24 hours.

Meanwhile, on the first day of its launch today, Amul touched the
posh areas of Gomti Nagar, Aliganj, Indira Nagar, Vikas Nagar and Narhi, where it
distributed around 1,000 litres of packed milk. The crates were left at the milk vends
owned by Parag agents and retailers.

35
STRAGETIES IN DIFFERENT STAGES OF PRODUCT
LIFE CYCLE
INTRODUCTION STAGE:

1. Rapid Skimming
 Most of market unaware of the product.
 When aware of, consumers are ready to pay high price.
 There is a threat of competition coming quickly.

2. Slow skimming
 Most of the market is aware of the product.
 Market is limited.
 When there is a threat of competition.

3. Rapid penetration
 When market is very big.
 Most of Market is unaware of product.
 There is a threat of competition.
 Consumers are price sensitive.

GROWTH STAGE:

Strategy:

 Improve product quality, styling and new features.

36
  Enter new market segment.
 Improve distribution coverage.
 Reduce price to attract price sensitive buyers.

MATURITY STAGE:

Strategy:

 Market modification.
 Product modification.
 Marketing mix modification.
 Down price and promotion.
 Market demand is more.
 Changes in distribution channel.
 More customers are willing to accept the products.

The most important factors that leads to change in product life cycle are:-
 Changing Customer needs.
 Better and more efficient user friendly products.
 OBJECTIVES OF THE STUDY
The consumer survey or market research was done with a primary

objective to study about the efficiency of Amul & Parag in providing their

products to the consumers & satisfying their needs.

37
 Major objectives were:-

 To know the consumers perception regarding the products of Amul &

Parag.

 To know why they prefer Amul or Parag products over any other

company’s product.

 To know their satisfaction level regarding price & place where these

products are available.

 To get the main findings based on questionnaire.

SCOPE OF STUDY

To keep things in minds that as the ever changing competitive business environment,
new thoughts and ideas should pour into research and development to innovate its
existing product, which should leave behind competitors.
 This study enables the user with answers to formulate affective marketing mix

strategy with a broader perspective to tap areas where it does not feel the need
earlier, hence the discussion of whether to penetrate this section or not can be
found out at the end of the data analysis.

38
  It also gives a fair idea of the potential of a business in the future and the

fluctuation in prices time to time and from product to product.

 Special reference is made to the improvement of quality of the product in terms
packaging and product innovation, advertisement, ways and means to cut down
competition.

RESEARCH METHODOLOGY

“Marketing Research” is a key to evaluation of successful marketing strategy &

programmes”. It is an important tool to study buyer’s behavior, changes in consumer
life style & consumption pattern brand loyalty and forecast market changes. Research is
also used to study consumption & analysis the competitor’s products positioning.
Marketing Research is also useful to help create & enhance equity.
RESEARCH PROBLEM
This is the starting point in the marketing Research exercise. A research problem is a
problem which a researcher faces or experiences when he/she goes through a theoretical
or practical situation and he/she strives to find a solution for the same
The problem is as follows:
“To study the consumer behaviour regarding the products of Amul and Parag and
the marketing mix of these two brands.”
RESEARCH OBJECTIVES
What the researcher wants to achieve, is his objective.
Objectives of the research study are-
1. To determine market penetration of the brands.
2. To analyse the strengths and weaknesses of the brands.
3. To know what the consumers exactly want from the brand.

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 RESEARCH DESIGN
A specific framework used for data collection of scientifically conducted project is
known as research design.
The research design used in present research is descriptive. .
SAMPLING DESIGN
The sampling design used in the research study is convenience (non-probability
sampling design).It has been done on the convenience of obtaining the data from
nearby available resources.

 Type of universe: The people living in lucknow city.

 Sample unit: The people coming to the milk booths.
 Sample size: 100 respondents surveyed for each for each Amul and Parag
products.
 Sources of data: Both primary and secondary data was collected.
 Primary data: Through questionnaire method.

 Secondary data: Reference of such books as:

a) Marketing management.
b) Consumer behaviour.
c) Search engines: www.google.com

d) www.yahoo.com

SWOT ANALYSIS

 STRENGTHS:

40
  Demand Profile:
Absolutely optimistic.

 Margins:
Quite reasonable, even on packed liquid milk.

 Flexibility of product mix:

Tremendous, with balancing equipment, you can keep on adding to your profile
line.

Availability of raw material:

Abundant, presently, more than 80% of milk produced is flowing into the
unorganized sector, which requires proper channelization.

 Technical manpower:
Professional- trained, technical human resource pool built over last 30 years

 WEAKNESS:
 Perishable

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.

41
  Lack of Control over yield:

Theoretically, there is little control over milk yield. However, increased

awareness of development like embryo transplant, artificial practices, coupled
with higher income to rural milk producers should automatically lead to
improvement in milk yield.

 Logistics Of procurement:

Woes of the bad roads and inadequate transportation facility make milk
procurement problematic. But with the overcall economic improvement in India,
these problems would also get solved.
 Problematic distribution:

Yes, all is not well with distribution. But then if ice creams can be sold virtually
at every nook and 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 the refrigerator at the consumers’ home.

 Competition:

With so many newcomers entering this industry, competition is becoming tougher

day by day. But then competition has to be faced as a ground of reality. The
market is large enough for many to carve out their niche

 OPPORTUNITIES:

42
“Failure is never final, and success 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 successes.If dairy entrepreneurs are
looking for opportunities in India, the following area must be tapped :-

Value addition:
There is a phenomenal scope for innovation in product development, packaging and
presentation. Given below are potential areas of value addition:

 Steps should be taken to introduce value added products like shrikhand, ice-
cream, paneer, khoa, flavoured milk, dairy sweets etc.
This will lead to 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 views open ups opportunities in milk proteins through caseins,

caseniates and other dietary proteins, further opening up export opportunities.

 Yet another aspect can be addition of infant foods, geriatric foods and nutritional
food .
Export Potential:

Efforts to exploit export potential are already on.

43
Amul is exporting to Bangladesh, Sri Lanka, Nigeria and the middle east.
Following the new GATT treaty, opportunities will increase tremendously for the
export of our agro-products in general and
dairy products in particular.

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THREATS:

 Milk vendors, the unorganized sector:

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.

The study of this SWOT analysis that the ‘strength’ and opportunities far
outweigh weaknesses and ‘threat’. Strength and opportunities are fundamental
and weakness and threats are transitory. Any investment idea can do well only
when you have three essential ingredients: entrepreneurship (the ability to take
risks), innovative approach (in product lines and marketing) and values (of
quality/ethics).

The Indian diary industry, following its de- licensing, has been attracting a large
number of entrepreneurs. Their success in diary depends on factors such as an
efficient yet economical procurement network, hygienic and cost-effective
processing facilities and innovativeness in the market place. All that needs to be
done, is to innovate, convert products into commercially exploitable ideas. All the
time keep reminding yourself. Benjamin Franklin discovered electricity, but it
was the man who invented the meter that really made the money.

45
46
 DATA ANALYSIS AND INTERPRETATION OF
AMUL PRODUCTS

1 Do you use any amul product?

 Total number of respondents 100
 Those who use 70
 Those who don’t use 30

INTERPRETATION:

47
Out of 100 people surveyed 70 people use amul products and 30 do not use.

48
2 Are you happy with the present price that is charged from you for the product?

 Those who are happy 57

 Those who are not happy 43

INTERPRETATION:

49
Out of 70 amul users, 40 are happy with its present price and 30 are not.

50
3 Do you come across the problems regarding non availability of the product?

 Those who come across 29

 Those who don’t come across 71

INTERPRETATION:

Out of 71 amul users, 29 come across the problem of non availability of the
products.

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52
4 Which factor do you regard the most while purchasing amul products?

 Price 17
 Brand name 14
 Taste 11
 Quality 58

PRICE
17% PRICE
BRAND
QUALIT NAME BRAND NAME
Y 14%
TASTE TASTE
58% 11% QUALITY

INTERPRETATION:

Out of 100 users of amul, 17 purchase on the basis of price,14 on brand name,11on
taste and 58 on quality.

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54
5 If substitutes are available would you like to switch over?
 Those who said yes 57
 Those who said no 43

INTERPRETATION:

Out of 100 amul consumers, 57 said they would switch over if substitutes will be
available.

55
6 Do you want more amul booths to be set up in your locality?

 Those who said yes 71

 Those who said no 29

INTERPRETATION:
50 out of 70 amul users want more booths to be set up in their locality.

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7 Do you want any changes in the product?
 Those who wanted changes in price 28
 Those who wanted changes in quality 43
 Those who wanted changes in quantity packs 29

INTERPRETATION:

Out of 100 amul users, 28 wanted change in the price,43 in quality and 29 in
quantity packs.

57
DATA ANALYSIS AND INTERPRETATION OF PARAG
PRODUCTS

1 Do you use any parag product?

 Total number of respondents 100
 Those who use 80
 Those who don’t use 20

INTERPRETATION:

Out of 100 people surveyed 80 people use parag products and 20 don’t use.

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 2 Are you happy with the present price that is charged from you for the product?

 Those who are happy 75

 Those who are not happy 25

INTERPRETATION:

100 people who use parag products, out of them 75 people are happy with the
present price of the products and 25 are not.

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60
3 Do you come across the problems regarding non availability of the product ?

 Those who come across 13

 Those who don’t come across 87

INTERPRETATION:
Out of 100 people who use parag products, 87come across the problem of non
availabillty of the products.

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4 Which factor do you regard the most while purchasing parag products?

 Price 60
 Brand name 4
 Taste 16
 Quality 20

INTERPRETATION:

The 100 people who use parag products, 60 buy it on the basis of price, 4 on brand
name,16 on taste and 20 on quality.

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5 If substitutes are available would you like to switch over?

 Those who said yes 62

 Those who said no 38

INTERPRETATION:

100 people who use parag products, 62 said they would switch over if substitutes
would be available in the market.

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6 Do you want more parag booths to be set up in your locality?
 Those who said yes 87
 Those who said no 13

INTERPRETATION:

Among 100 parag users, 87 wanted that more parag booths should be set up in
their locality.

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 7 Do you want any changes in the product?

 Those who wanted changes in price 49

 Those who wanted changes in quality 38
 Those who wanted changes in quantity packs 13

INTERPRETATION:

65
Out of 100 parag consumers, 49 wanted change in the price, 38 in quality and 13
wanted change in quantity packs.

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 FINDINGS

1. Some consumer feels that the price of parag and amul product is increasing at
a fast rate, they wanted reduction in prices.
2. Most of Consumers wanted more number of Booths to be set in their locality.
3. Distribution of products on some booths is untimely.
4. Some consumer complained that the packaging of the sweet curd was not
good.
5. Most of the consumers of both parag and amul purchased the respective
products on the basis of quality and price factor.
6. Most of the consumers showed their desire of bringing about change in the
price and quality of the products.
7. Some consumers complained that ghee did not contain granules as that of
villages.
8. Some consumers complained that ghee is not available in 250 gm pack.

LIMITATIONS OF THE STUDY

1. Since the universe of the survey was quite large, it was not feasible to cover all
the consumers of the city.

2. Consumers when asked about the milk products used to give a lot of biased
answers so as to create their own importance.

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3. Some respondents did not answer the questions properly.
4. Any questionnaire could not be adequate enough to fully serve the objective of
the survey, thus making it necessary to carry out an interview along with the
questionnaire.

5. Time was not sufficient, that may affect the effectiveness of the research study.

6. Some unavoidable errors occurred during the process of transforming the raw
data from questionnaire into the research findings.

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 RECOMMENDATIONS

1) I would suggest that both Parag and Amul should try to achieve economies of
scale so that they could lower down their product prices, as demanded by the
consumers.

2) They should try to increase their area of operation instead of concentrating on

one or two prominent places or cities.
3) The quality of the products should be improved through research and
development that could increase the satisfaction level of the consumers.
4) Parag should concentrate on advertising aspects of its products,and Amul should
keep continuing the same advertising strategy as it has been following till now.
5) Parag and Amul should increase their product range by innovating new products.

6) Both Amul and Parag from time to time should take the consumers feedback so
that they can improve upon their weaknesses

CONCLUSION

The consumer survey reveals some aspects of Parag & Amul while pointing out some
major shortcomings too. The biggest asset of Parag and Amul is the faith in its quality
consciousness. It is pasteurized and has additional vitamins.’A’,’D’ and ‘E’ which is
added to the butter in order to provide better products to the consumers.

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An overwhelming majority of consumers are satisfied with the quality of Parag & Amul
products & very few have complained regarding this aspect of parag & Amul. It seems
that quality is the only asset of Parag & Amul.At other aspects too Parag & Amul
should do some improvements.

There are some complains against Parag & Amul products like high price of paneer
etc.There are some complains against Amul sweet pack and ice-cream’s quality. Some
complains against the Amul lassi’s quality and taste.The distribution channel of Parag &
Amul is also good,but it should be early in the morning.
APPENDICES

QUESTIONNAIRE FOR PARAG PRODUCTS

NAME:……………………………………………………………………
ADDRESS:………………………………………………………………..………..
……………………………………………………………………
TELEPHONE NO:………………………………………………………..

1) Do you use any parag products?

YES NO

70
IF YES :

2) Which of the following parag products you use:-

Flavoured milk Milk cake
Sweet curd Ice-cream
Matha Paneer

3) What is your consumption pattern?

Daily Weekly Monthly

Flavoured milk
Sweet curd
Matha
Milk cake
Ice-cream
Paneer

4) Are you happy with the present price that is being charged from you for the
product?
YES NO

5) Do you come across the problem of non availability of the products?

YES NO

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6) Which factor do you regard the most while purchasing parag products?
Price
Brand name
Taste
Quality

7) If substitutes are available would you like to switch over?

YES NO

8) Do you want more parag booths to be set up in your locality?

YES NO

9) Do you want any changes in the parag product?

Price
Quality
Quantity packs

Any suggestions:……………………………………………………….
………………........................................................................................

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 QUESTIONNAIRE FOR AMUL PRODUCTS

NAME:……………………………………………………………………
ADDRESS:……………………………………………………………….
……………………………………………………………………………
TELEPHONE NO:……………………………………………………….

1) Do you use any amul products?

YES NO

IF YES:

2) Which of the following amul products you use:-

Flavoured milk Milk cake
Sweet curd Ice-cream
Matha Paneer
Chocolate Masti soups
Cheese Lassi
Nutramul Shakti health food
Amul dairy whitner

3) What is your consumption pattern?

Daily Weekly Monthly
Flavoured milk

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Sweet curd
Matha
Milk cake
Ice-cream
Paneer
Chocolate
Cheese
Lassi
Masti soup
Nutramul
Amul dairy whitner
Shakti health food

4) Are you happy with the present price that is being charged from you for the
products?
YES NO

5) Do you come across the problem of non availability of the product?

YES NO

6) Which factor do you regard the most while purchasing amul products?

Price
Brand name
Taste
Quality

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7) If substitutes are available would you like to switch over?
YES NO

8) Do you want more amul booths to be set up in your locality?

YES NO

9) Do you want any changes in the parag products?

Price
Quality
Quantity packs

Any suggestions:……………………………………………………
………................................................................................................

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 BIBLIOGRAPHY

Books Name Authors Name

Marketing Management Philip Kotler

Consumer Behaviour Leon G.Schiffman &

L.L.Kannuk

Search Engines www.google.com

www.yahoo.com

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