SUMMER TRAINING PROJECT REPORT

ON
“A Study on Amul Vs Parag Marketing Strategy in
Lucknow City”

Towards partial fulfillment of Master of Business Administration (MBA)

(Affiliated to Dr. A. P. J. Abdul Kalam Technical University, Lucknow)

Company Guide: Faculty Guide:

Mr. R.K. Rai

Mr. R.B.Singh Dr. R.K. Prasad

Submitted by

ANKIT SINGH

1812470020

Session 2018-20
ACKNOWLEDGEMENT
PREFACE
EXECUTIVE SUMMARY
 INDEX

Certificate

Declaration

Acknowledgement

Preface

Executive Summary

Sr. No. Topic Page no.

1. Introduction

2. Company profile

3. SWOT Analysis

4. Scope of the Study

5. Objectives of the study

6. Research methodology

7. Data analysis & Interpretation

8. Recommendations

9. Conclusions

10. Limitations
11. Bibliography

12. Appendix
 [chapter-1]

INTRODUCTION
INTRODUCTION TO THE TOPIC

Marketing Mix study of Amul & Parag:

Marketing mix 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

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%

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 in

the last 4 decades.

Product Specification:

Meets AGMARK standards and BIS specification NO.IS:13690:1992.

GUJRAT COOPERATION MILK MARKETING FEDERATION

GCMMF: A PROFILE

Gujarat Cooperative Milk Marketing Federation is India’s largest food products marketing

organization. It is the state level apex body of milk cooperative in Gujarat 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

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

 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

 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

Milk Drink:

 Amul Kool Flavored Milk

 Amul Kool Café

Health Beverage:

 Amul Shakti White Food

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 is 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.

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.

INTRODUCTION OF MARKETTING DIVISIONS

The 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

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

REGIONAL MARKETTING OFFICES:

The marketing of parag product is monitored and effected through six region marketing

offices located at Lucknow, Rampur, Delhi, Meerut, 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.

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:

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.

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.

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

2. His resources

3. His objectives

A market assessment must take account of the situation of one’s competitors and their

probable future action. The particular services or product offered by competitors should be

considered together with there market share likely future trends.

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 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 19th 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 19th 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

-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 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 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)

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

and can also 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.

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.

‘‘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.
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.

 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.

[Chapter 2]

Company Profile
Company profile of Parag:

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.

Company profile of Amul:
42
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 ensure 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

43
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.

44
OBJECTIVES OF THE STUDY

45
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.

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.

46
SCOPE OF STUDY

47
SCOPE OF STUDY

 To keep things in minds that as the everchanging 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.

 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.

48
SWOT ANALYSIS

 STRENGTHS:

 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:

49
 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.

 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 overall

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.

50
  OPPORTUNITIES:

“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.

51
  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. 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.

 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

52
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.

53
RESEARCH METHODOLOGY

54
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:

55
“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.

RESEARCH DESIGN

A specific framework used for data collection of scientifically conducted project

is known as research design. There are three types of research design. :-

 Exploratory

 Descriptive

 Hypothesis testing

56
The research design used in present research is descriptive.

SAMPLING DESIGN

There are basically two types of sampling designs. They are as follows:

 Probability sampling design.

 Non- Probability 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.

It also includes:

 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.

57
  Secondary data: Reference of such books as:

a) Marketing management.

b) Consumer behaviour.

c) Search engines: www.google.com

DATA ANALYSIS AND INTERPRETATION

58
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

NO
30%
YES
NO
YES
70%

INTERPRETATION:

59
Out of 100 people surveyed 70 people use amul products and 30 do not use.

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

product?

Those who are happy 40

Those who are not happy 30

NO
43% YES
YES NO
57%

INTERPRETATION:

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

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

product?

 Those who come across 20

 Those who don’t come across 50

YES
29%
YES
NO
NO
71%

INTERPRETATION:

Out of 70 amul users, 20 come across the problem of non availability of the

products.

61
4 Which factor do you regard the most while purchasing amul products?

 Price 12

 Brand name 10

 Taste 8

 Quality 40

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

INTERPRETATION:

Out of 70 users of amul, 12 purchase on the basis of price,10 on brand name,8 on

taste and 40 on quality.

62
5 If substitutes are available would you like to switch over?

 Those who said yes 40

 Those who said no 30

NO
43% YES
YES NO
57%

INTERPRETATION:

Out of 70 amul consumers, 40 said they would switch over if substitutes will be

available.

63
6 Do you want more amul booths to be set up in your locality?

 Those who said yes 50

 Those who said no 20

NO
29%
YES
NO
YES
71%

INTERPRETATION:

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

64
7 Do you want any changes in the product?

 Those who wanted changes in price 20

 Those who wanted changes in quality 30

 Those who wanted changes in quantity packs 20

QUANTIT
Y PACK PRICE
29% 29% PRICE
QUALITY
QUANTITY PACK
QUALITY
42%

INTERPRETATION:

65
Out of 70 amul users, 20 wanted change in the price,30 in quality and 20 in

quantity packs.

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

NO
20%

YES
NO
YES
80%

INTERPRETATION:

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

66
2 Are you happy with the present price that is charged from you for the

product?

Those who are happy 60

Those who are not happy 20

NO
25%
YES
NO
YES
75%

INTERPRETATION:

80 people who use parag products, out of them 60 people are happy with the

present price of the products and 20 are not.

67
3 Do you come across the problems regarding non availability of the

product?

 Those who come across 10

 Those who don’t come across 70

YES
13%

YES
NO

NO
87%

INTERPRETATION:

Out of 80 people who use parag products, 10 come across the problem of non

availabillty of the products.

68
4 Which factor do you regard the most while purchasing parag products?

 Price 30

 Brand name 2

 Taste 8

 Quality 40

QUALITY PRICE
20%
BRAND NAME
TASTE PRICE
60% TASTE
16%
QUALITY
BRAND
NAME
4%

INTERPRETATION:

The 80 people who use parag products, 30 buy it on the basis of price, 2 on

brand name,8 on taste and 40 on quality.

69
5 If substitutes are available would you like to switch over?

 Those who said yes 50

 Those who said no 30

NO
38% YES
YES NO
62%

INTERPRETATION:

80 people who use parag products, 50 said they would switch over if substitutes

would be available in the market.

70
6 Do you want more parag booths to be set up in your locality?

 Those who said yes 70

 Those who said no 10

NO
13%

YES
NO

YES
87%

INTERPRETATION:

Among 80 parag users, 70 wanted that more parag booths should be set up in

their locality.

71
7 Do you want any changes in the product?

 Those who wanted changes in price 40

 Those who wanted changes in quality 30

 Those who wanted changes in quantity packs 10

QUANTI
TY
PACKS PRICE
13%
PRICE QUALITY
QUALIT
Y 49%
38% QUANTITY
PACKS

INTERPRETATION:

Out of 80 parag consumers, 40 wanted change in the price, 30 in quality and 10

wanted change in quantity packs.

72
FINDINGS

73
 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.

74
8. Some consumers complained that ghee is not available in 250 gm pack.

LIMITATIONS OF THE STUDY

75
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.

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.

76
RECOMMENDATIONS

77
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.

78
6) Both Amul and Parag from time to time should take the consumers

feedback so that they can improve upon their weaknesses.

CONCLUSION

79
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.

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.

80
BIBLIOGRAPHY

81
BIBLIOGRAPHY:

Books Name Authors Name

Marketing Management Philip Kotler

Consumer Behaviour Leon G.Schiffman &

L.L.Kannuk

Search Engines www.google.com

82
APPENDICES

83
APPENDICES

QUESTIONNAIRE FOR PARAG PRODUCTS

NAME:……………………………………………………………………

ADDRESS:………………………………………………………………..

………..……………………………………………………………………

TELEPHONE NO:………………………………………………………..

1) Do you use any parag products?

YES NO

IF YES :

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

Flavoured milk Milk cake

Sweet curd Ice-cream

Matha Paneer

84
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

85
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:……………………………………………………….

………………....................................................................................

86
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

87
3) What is your consumption pattern?

Daily Weekly Monthly

Flavoured milk

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

88
 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

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

89
9) Do you want any changes in the amul products?

Price

Quality

Quantity packs

Any suggestions:……………………………………………………

………................................................................................................

90