CHAPTER 1

INTRODUCTION

1
 India is the world's largest milk producing country and is growing fast, with an eye toward
becoming a major dairy exporter. This article is helpful reading for anyone interested better
understanding.
Consumer Habits and Practices
Milk has been an integral part of Indian food for centuries. The per capita availability of milk
in India has grown from 172 gm per person per day in 1972 to 182gm in 1992 and 203 gm in
1998-99.This is expected to increase to 212gms for 2008. However a large part of the
population cannot afford milk. At this per capita consumption it is below the world average
of 285 gm and even less than 220 gm recommended by the Nutritional Advisory Committee
of the Indian Council of Medical Research.
There are regional disparities in production and consumption also. The per capita availability
in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm per person per
day. This disparity is due to concentration of milk production in some pockets and high cost
of transportation. Also the output of milk in cereal growing areas is much higher than
elsewhere which can be attributed to abundant availability of fodder, crop residues, etc which
have a high food value for milky animals.
In India about 46 per cent of the total milk produced is consumed in liquid form and 47 per
cent is converted into traditional products like cottage butter, ghee, paneer, khoya, curd,
malai, etc. Only 7 per cent of the milk goes into the production of western products like milk
powders, processed butter and processed cheese. The remaining 54% is utilized for
conversion to milk products. Among the milk products manufactured by the organized sector
some of the prominent ones are ghee, butter, cheese, ice creams, milk powders, malted milk
food, condensed milk infants foods etc. Of these ghee alone accounts for 85%.
It is estimated that around 20% of the total milk produced in the country is consumed at
producer-household level and remaining is marketed through various cooperatives, private
dairies and vendors. Also of the total produce more than 50% is procured by cooperatives and
other private dairies.
While for cooperatives of the total milk procured 60% is consumed in fluid form and rest is
used for manufacturing processed value added dairy products; for private dairies only 45% is
marketed in fluid form and rest is processed into value added dairy products like ghee,
makhan etc.

2
Still, several consumers in urban areas prefer to buy loose milk from vendors due to the
strong perception that loose milk is fresh. Also, the current level of processing and packaging
capacity limits the availability of packaged milk.
The preferred dairy animal in India is buffalo unlike the majority of the world market, which
is dominated by cow milk. As high as 98% of milk is produced in rural India, which caters to
72% of the total population, whereas the urban sector with 28% population consumes 56% of
total milk produced. Even in urban India, as high as 83% of the consumed milk comes from
the unorganized traditional sector.
Presently only 12% of the milk market is represented by packaged and branded pasteurized
milk, valued at about Rs.8, 000 crores. Quality of milk sold by unorganized sector however is
inconsistent and so is the price across the season in local areas. Also these vendors add water
and caustic soda, which makes the milk unhygienic.

Market Size and Growth

Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at
Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk surplus
states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra
Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in
these milk surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh,
Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production.
Milk production grew by a mere 1% pa between 1947 and 1970. Since the early 70's, under
Operation Flood, production growth increased significantly averaging over 5% pa.
About 75% of milk is consumed at the household level which is not a part of commercial
dairy industry. Loose milk has a larger market in India as it is perceived to be fresh by most
consumers. In reality however, it poses a higher risk of adulteration and contamination.
The production of milk products, i.e. milk products including infant milk food, malted food,
condensed milk & cheese stood at 3.07 lakh MT in 2008. Production of milk powder
including infant milk-food has risen to 2.25 lakh MT in 2008, whereas that of malted food is
at 65000 MT. Cheese and condensed milk production stands at 5000 and 11000 MT
respectively in the same year.

3
Major Players

The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative
Milk Marketing Federation (GCMMF) is the largest player. All other local dairy cooperatives
have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in Rajasthan, Verka in
Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other private players include J
K Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a
leading player in the sector has turned bankrupt and is facing liquidation.

Packaging Technology

Milk was initially sold door-to-door by the local milkman. When the dairy co-operatives
initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the
years, several developments in packaging media have taken place. In the early 80's, plastic
pouches replaced the bottles. Plastic pouches made transportation and storage very
convenient, besides reducing costs. Milk packed in plastic pouches/bottles have a shelf life of
just 1-2 days, that too only if refrigerated. In 1996, Tetra Packs were introduced in India.
Tetra Packs are aseptic laminate packs made of aluminum, paper, board and plastic. Milk
stored in tetra packs
and treated under Ultra High Temperature (UHT) technique can be stored for four months
without refrigeration. Most of the dairy co-operatives in Andhra Pradesh, Tamil Nadu,
Punjab
and Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs5-7
compared to plastic pouches. In 2008-00 Nestle launched its UHT milk. Amul too relaunched
its Amul Taaza brand of UHT milk. The UHT milk market is expected to grow at a rate of
more than 10-12% in coming years.

4
Regulatory Framework

The dairy industry was de-licensed in 1991 with a view to encourage private investment and
flow of capital and new technology in the segment. Although de-licensing attracted a large
number of players, concerns on issues like excess capacity, sale of contaminated/ substandard
quality of milk etc induced the Government to promulgate the MMPO (Milk and Milk
Products Order) in 2008. Milk and Milk Products Order (MMPO) regulates milk and milk
products production in the country. The order requires no permission for units handling less
than 10,000 litres of liquid milk per day or milk solids up to 500 TPA. MMPO prescribes
State registration to plants producing between 10,000 to 75,000 litres of milk per day or
manufacturing milk products containing between 500 to 3,750 tones of milk solids per year.
Plants producing over 75,000 litres per day or more than 3,750 tones per year of milk solids
have to be registered with the Central Government. The stringent regulations, government
controls and licensing requirements for new capacities have restricted large Indian and MNC
players from making significant investments in this product category. Most of the private
sector players have restricted themselves to manufacture of value added milk products like
baby food, dairy whiteners, condensed milk etc.
All the milk products except malted foods are covered in the category of industries for which
foreign equity participation up to 51% is automatically allowed. Ice cream, which was
earlier reserved for manufacturing in the small-scale sector, has now been de-reserved. As
such, no license is required for setting up of large-scale production facilities for manufacture
of ice cream.
Subsequent to de-canalization, exports of some milk based products are freely allowed
provided these units comply with the compulsory inspection requirements of concerned
agencies like: National Dairy Development Board, Export Inspection Council etc. Bureau of
Indian standards has prescribed the necessary standards for almost all milk-based products,
which are to be adhered to by the industry.

5
Proposal to Amend the MMPO

A proposal to raise the exemption limit for compulsory registration of dairy plants, from the
present 10,000 litres a day to 20,000 litres, is being considered by the Animal Husbandry
Department. The 75,000-litre limit is likely to be raised either to 100,000 litres or 125,000
litres in the amended order. The new order would also do away with the provision for re-
registration.

Penetration of milk products

Western table spreads such as butter, margarine and jams are not very popular in India. All
India penetration of butter/ margarine is only 4%. This is also largely represented by urban
areas, where penetration is higher at 9%. In rural areas, butter/ margarine have penetrated in
2.1% of households only. The use of these products in the large metros is higher, with
penetration at 15%.

Penetration of cheese is almost nil in rural areas and negligible in the urban areas. Per capita
consumption even among the cheese-consuming households is a poor 2.4kg pa as compared
to over 20kg in USA. The lower penetration is due to peculiar food habits, relatively
expensive products and also non-availability in many parts of the country. Butter, margarine
and cheese products are mainly manufactured by organized sector.
Similarly, penetration of ghee is highest in medium sized towns at 37.2% compared to 31.7%
in all urban areas and 21.3% in all rural areas. The all India penetration of ghee is 24.1%. In
relative terms, penetration of ghee is significantly higher in North and West, which are milk
surplus regions. North accounts for 57% of ghee consumption and West for 23%, South &
East together account for the balance 20%. A large part of ghee is made at home and by
small/ cottage industry from milk. The relative share of branded products in this category is
very low at around 1-2%.

Milk powder and condensed milk have not been able to garner any significant consumer
acceptance in India as indicated by a very low 4.7% penetration. The penetration is higher at
8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively
higher in medium sized towns at 8.5% compared to 7.7% in large metros.

6
Export Potential
India has the potential to become one of the leading players in milk and milk product exports.
Location advantage: India is located amidst major milk deficit countries in Asia and Africa.
Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore,
Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located
close to India.

The major export products: -

The products of Amul is being exported in the 40 countries of the world . Many of the
products are now available in the U.S.A , Gulf countries and Singapore. Amul products are
being exported to the Singapore since last three decades . undoubtedly , Amul is the preferred
taste of Indians in the Gulf countries.

Low Cost of Production:

Milk production is scale insensitive and labour intensive. Due to low labour cost, cost of
production of milk is significantly lower in India.
Concerns in export competitiveness are Quality: Significant investment has to be made in
milk procurement, equipments, chilling and refrigeration facilities. Also, training has to be
imparted to improve the quality to bring it up to international standards.
Productivity: To have an exportable surplus in the long-term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle.
There is a vast market for the export of traditional milk products such as ghee, paneer,
shrikhand, rasagulas and other ethnic sweets to the large number of Indians scattered all over
the world.

7
Indian (traditional) Milk Products

There are a large variety of traditional Indian milk products such as

Makkhan - unsalted butter. Ghee - butter oil prepared by heat clarification, for longer shelf
life. Kheer - a sweet mix of boiled milk, sugar and rice. Basundi - milk and sugar boiled
down till it thickens. Rabri - sweetened cream. Dahi - a type of curd. Lassi - curd mixed with
water and sugar/ salt. Channa/Paneer - milk mixed with lactic acid to coagulate. Khoa -
evaporated milk, used as a base to produce sweet meats. The market for indigenous based
milk food products is difficult to estimate as most of these products are manufactured at
home or in small cottage industries catering to local areas.
Consumers while purchasing dairy products look for freshness, quality, taste and texture,
variety and convenience. Products like Dahi and sweets like Kheer, Basundi, Rabri are
perishable products with a shelf life of less than a day. These products are therefore
manufactured and sold by local milk and sweet shops. There are several such small shops
within the vicinity of residential areas. Consumer loyalty is built by consistent quality, taste
and freshness. There are several sweetmeat shops, which have built a strong brand franchise,
and have several branches located in various parts of a city.

Branding Of Traditional Milk Products

Among the traditional milk products, ghee is the only product, which is currently marketed,
in branded form. main ghee brands are Sagar, Milkman (Britannia), Amul (GCMMF), Aarey
(Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation), Verka ( Punjab Dairy
Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt).
With increasing urbanization and changing consumer preferences, there is possibility of large
scale manufacture of indigenous milk products also. The equipments in milk manufacturing
have versatility and can be adapted for several products. For instance, equipments used to
manufacture yogurt also can be adapted for large scale production of Indian curd products
(dahi and lassi). Significant research work has been done on dairy equipments under the aegis
of NDDB.
Mafco Limited sells Lassi under the Aarey brand and flavored milk under the Energee
franchise (in the Western region, mainly in Mumbai). Britannia has launched flavored milk in
various flavors in tetra packs.

8
GCMMF has also made a beginning in branding of other traditional milk products with the
launch of packaged Paneer under the Amul brand. It has also created a new umbrella brand
"Amul Mithaee", for a range of ethnic Indian sweets that are proposed to be launched the first
new product Amul Mithaee Gulabjamun has already been launched in major Indian markets.

Western Milk Products

Western milk products such as butter, cheese, yogurt have gained popularity in the Indian
market only during the last few years. However consumption has been expanding with
increasing urbanization.

Butter

Most Indians prefer to use home made white butter (makkhan) for reasons of taste and
affordability. Most of the branded butter is sold in the towns and cities. The major brands are
Amul, Vijaya, Sagar, Nandini and Aarey. Amul is the leading national brand while the other
players have greater shares in their local markets. The latest entrant in the butter market has
been Britannia. Britannia has the advantages of a wide distribution reach and a strong brand
recall.
Priced at par with the Amul brand, it is expected to give stiff competition to the existing
players. In 2008-00 the butter production is estimated at 4 lakh MT of this only 45K MT is in
the white form used for table purposes rest all is in the yellow form.

Cheese

The present market for cheese in India is estimated at about 9,000 tonnes and is growing at
the rate of about 15% per annum. Cheese is mainly consumed in the urban areas. The four
metro cities alone account for more than 50% of consumption. Mumbai is the largest market
(accounting for 30% of cheese sold in the country), followed by Delhi (20%). Calcutta (7%)
and Chennai (6%). Mumbai has a larger number of domestic consumers, compared to Delhi
where the bulk institutional segment (mainly hotels) is larger.

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Manufacturing Process

Milk is pasteurized by treating it to high temperature for a short time. The main aim in
treating milk with high temperature is to destroy the disease causing pathogens and to
improve keeping quality.
Separation machine is typically a high powered centrifuge. The centrifugal force makes milk
fat globules and emerges as cream from the separator bowl. Separation of cream produces
skim milk from which several dairy products are made.
Baby food: Fresh milk, which is received from farmers/ traders, is chilled and stored. Then
MSK skimmed/ wet skimmed milk and sugar are added in turbo mixture to achieve the
desired specifications of ingredients in the milk. This is followed by addition of vitamins and
minerals. This milk which contains ingredients to specifications is filtered, cooled, analyzed
and then purified. Then it passes through specific pasteurization and is taken to evaporator for
pre-condensing. Pre-condensate is homogenized, cooled and stored. Cooled pre-condensate is
heated and dried in spray drier (Egron). Then sugar is added. The powder is then passed
through chemical analysis to check quality and is filled in tins through filling machines.
These tins are gassed during gas mix and then sealed, packed and dispatched in cardboard
cartons.

Butter:

Whole milk is first separated into skim milk and cream by centrifugal force in a separator.
The cream is then pasteurized either through batch process or a continuous process. In batch
process, cream is heated to a minimum of 740 C and held at the temperature for 30 minutes,
while in continuous process it is heated at 850 C and is held for only 15 seconds. The heat
treatment destroys bacteria, inactivates enzymes and gives the cream a cooked flavour.
After pasteurization, a tempering process is applied in which cream is held at 100 C to allow
rearrangement of the fat crystals. The cream is then churned to produce butter. Continuous
churning converts cream into butter in a few minutes while batch churning takes a longer
time. Composition and colour adjustment is also done at the churning stage and a salt solution
is added to give the finished butter a salty taste. About 13 litres of milk with 6% fat is
required to produce 1 kg of butter.

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Cheese:

There are thousands of varieties of cheese in the world. The type of manufacturing process
used in the production of cheese determines its flavour, which ranges from extremely mild to
very sharp, and its texture, which can be semi-solid to almost stone hard. Cheese making
requires four main ingredients - good quality milk, rennet or coagulating acids, culture and
salt. Cheese is generally made from cow's milk. About 10 litres of milk with 3% fat is
required for making 1 kg of cheese. Natural Cheese is made by coagulating or curdling milk,
stirring & heating the curd, draining off the whey and collecting or pressing the curd. The
desired flavour and texture is obtained by varying the temperature, humidity and time period
of the curing process. Sweetened condensed milk is usually made from fresh milk by adding
sugar to the milk pre-warming and concentrating the mixture in the high vacuum. The syrupy
milk is then cooled so that the lactose crystallizes as very fine crystals and then the product is
coagulated.

PROFILE OF PARAG DAIRY

Parag Dairy – Delhi was set up in 1974 under the Operation Flood Programme. It is now a
wholly owned company of the National Dairy Development Board (NDDB).
Parag Dairy markets & sells dairy products under the Parag Dairy brand (like Liquid Milk,
Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal range of fresh
fruits & vegetables, frozen vegetables and fruit juices at a national level through its sales and
distribution networks for marketing food items.

Parag Dairy sources significant part of its requirement of liquid milk from dairy cooperatives.
Similarly, Parag Dairy sources fruits and vegetables from farmers / growers associations.
Parag Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/

11
pack the Dhara range of edible oils by undertaking to nationally market all Dhara products. It
is Parag Dairy’s constant endeavor to

(a)  Ensure that milk producers and farmers regularly and continually receive market prices
by offering quality milk, milk products and other food products to consumers at competitive
prices and;

(b)  Uphold institutional structures that empower milk producers and farmers through
processes that are equitable.

At Parag Dairy, processing of milk is controlled by process automation whereby state-of-the-

art microprocessor technology is adopted to integrate and completely automate all functions
of the milk processing areas to ensure high product quality/ reliability and safety. Parag Dairy
is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization. Moreover,
its
Quality Assurance Laboratory is certified by National Accreditation Board for Testing and
Calibration Laboratory (NABL)-Department of Science and Technology, Government of
India.

Parag Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi,
Mumbai, Saurashtra and Hyderabad. Parag Dairy Milk has a market share of 66% in the
branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its
marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Parag
Dairy.

The company’s derives significant competitive advantage from its unique distribution
network of bulk vending booths, retail outlets and mobile units. Parag Dairy ice creams
launched in the year 1995 have shown continuous growth over the years and today boasts of
approximately 62% market share in Delhi and NCR. Parag Dairy also manufactures and
markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk,
Lassi & Flavored Milk and most of these products are available across the country.

The company markets an array of fresh and frozen fruit and vegetable products under the
brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than
12
20,000 retail outlets in various parts of the country. Fresh produce from the producers is
handled at the Company’s modern distribution facility in Delhi with an annual capacity of
200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in
Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a
100 percent EOU, setup in 1996 at Mumbai supplies quality products in the international
market.

With increasing demand another state-of-the-art fruit processing plant has been set up at
Bangalore with fruit handling capacity of around 250 MT per day. Parag Dairy has also been
marketing the Dhara range of edible oils for the last few years. Today it is a leading brand of
edible oils and is available across the country in over 2, 00,000 outlets. The brand is currently
available in the following variants: Refined Vegetable Oil, Refined Soybean Oil, Refined
Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil.
Parag Dairy has also launched extra virgin Olive Oil under the Daroliva brand.

Parag Dairy has over the last 3 decades, harnessed the power of farmer cooperatives to
deliver a range of delicious products and bring a smile on your face. In times to come, Parag
Dairy shall strive to remain one of India’s finest food companies.

List of Products Marketed:

Bread spreads:
Parag Butter

Cheese Range:
Parag Paneer

UHT Milk Range:

Parag Milk
Parag Fresh Cream

13
Consumer Perception towards Amul & Parag Dairy Products

Export Potential

India has the potential to become one of the leading players in milk and milk product exports.
Location advantage: India is located amidst major milk deficit countries in Asia and Africa.
Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore,
Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located
close to India.

Low Cost of Production:

Milk production is scale insensitive and labour intensive. Due to low labour cost, cost of
production of milk is significantly lower in India.
Concerns in export competitiveness are

Quality: Significant investment has to be made in milk procurement, equipments, chilling

and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it
up to international standards.

Productivity:

To have an exportable surplus in the long-term and also to maintain cost competitiveness, it is
imperative to improve productivity of Indian cattle.
There is a vast market for the export of traditional milk products such as ghee, paneer,
shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all over
the world

14
 CHAPTER 2
OBJECTIVE OF THE
STUDY

15
Amul & Parag Dairy is the market leader of dairy based food products in Agra City. Amul is
the major competitors in the market against Parag Dairy. It is important to get an idea
regarding Amul’s & Parag Dairy position in Agra City. It would not help Amul to capitalize
on existing potential but also to formulate strategies and to fill the look holes and gaps to
fight the competitive situation

The Objective also contains:

1. To determine the market share of Amul & Parag dairy based product.
2. To determine the consumer preferences of Amul & Parag dairy product with the help
of some parameters -quality, taste, price, packing style.
3. To compare the dairy product of Amul and Parag dairy on the basis of above
parameters

16
 CHAPTER 3
RESEARCH
METHODOLOGY

17
 Methodology for a study like this is the most important part .The method of study operate
by me is totally is to increase $ to gather the more information regarding this project.

The major emphasis in such studies is on the discovery of the ideas fruitful relevant
information. As such the research design appropriate for such studies must be flexible
enough to provide opportunity for considering different aspect of a problem under study.

I collected the information regarding this project through –

I. PRIMARY DATA
II. SECONDARY DATA

Primary data is collected by the customers and Parag retailers.

Secondary data is collected by retailer & personal interview.

Since our research is descriptive type, so research design is also descriptive.

Sample design:

Sampling is a process of obtaining information about an entire population by examining only

a part of it.
As depicted below, I have taken 14 retailers and 30 customers as my sample size

Sample size:

RETAILER : 35
CUSTOMER: 110

Analytical tools:

18
This study is based on collecting data by using well-connected questionnaire for consumer
from various demographic segments and also data is collected using secondary sources. After
collecting data it is arranged in the form of tables from analysis and interpretation. Graphs
and percentage analysis are the main tools used for the purpose of interpretation.

19
 ANALYSIS AND INTERPRETATION OF DATA

Q.1. Do you stock Amul dairy products?

a.) Yes b.) No

Stockiest No. of respondents

Yes 90

No 10

Total sample size 100

Stockiest of amul products

100
90
80
70
60 Stockiest of amul products
50
40
30
20
10
0
Yes No

Interpretation :
As per the graph we can interpret that only 10% retailers are not maintaining the stock of
“Amul” milk, so majority market segment has been covered by this company and for the
remaining market share we can interpret that it has been covered by “Mauli” & “Katraj” Milk
products.

20
Q.2. If no, why?

a) Absence of packaging date b) Low margin

c) No Replacement for leakage d) Low distribution

Reason No. of retailers

Absence of packaging date 15
Low margin 50
No replacement for leakage 30
Low distribution 5
Total sample size 100

Reason Behind Not take Amul products

60
50
40
30
20
Reason Behind Not take Amul
10 products
0
e ge
at gin ka tio
n
g d ar a u
in m le ib
ag Lo
w or istr
ac
k tf d
fP en Lo
w
eo em
nc lac
se p
re
Ab No

Interpretation:
From the above mentioned graph we can conclude that the remaining 10% retailers are not
keeping the “Amul” milk products because their major competitors in this Pune region
i.e.”Mauli” & “Katraj” is giving more margin to their retailers. And another reason for not
purchasing its products is not providing replacement facility.

Q.3 Which is the most preferable brand of packaged dairy products that you stock?

21
 a) Amul b) Katraj c) Nestle d) Gokul

Product Brand Retailers Stock

Amul 45
Katraj 30
Nestle 15
Gokul 10
Total sample size 100

Retailers Stock
50

45

40

35

30
Retailers Stock
25

20

15

10

0
Amul Katraj Nestle Gokul

Interpretation:
From the above mentioned graph we can interpreted that major sample customers are
Preferring the “Amul” milk products due to the best packaged in comparison to their
Competitors and that is the main reason of major market segments.

Q.4 If yes, what product does you preferred to store?

a.) Amul butter b) Planner c) Butter milk d) Dahi
e) Flavored milk f) Cheese g) Amul pro h) other

22
 Amul Products Retailers Preferred
Amul Butter 70
Panner 40
Butter Milk 25
Dahi 30
Flavored Milk 30
Cheese 40
Amul pro 5
Other 10
Total Sample size 100

Retailers preferred
80
70
60
50
40
Retailers preferred
30
20
10
0
er er ilk hi ilk se ro he
r
Butt ann r M Da d
M hee ul
P
Ot
u l P tte re C m
Bu ou A
Am lF av

Interpretation:
From the above mentioned graph we can interpret that customers mainly preferred the “Amul
Butter” and “Amul Cheese and Paneer” and it is only due to increasing demand for the fast
food in Indian market. However customers also prefer “Amul Milk” because it produces
much different flavored milk in comparison to their main competitors.

23
Q.5 What is the source from where do you get Amul Products?
a) Distributor b) Other supplier

Sources Respondent
Distributers 95
Other Suppliers 5
Total sample size 100

24
 Sources
100
90
80
70
60 Sources
50
40
30
20
10
0
Distributers Other Suppliers

Interpretation:
As per the graph we can conclude that majority of its products are selling to their final
customers by their distributors and remaining customers are directly purchasing from the
market i.e. from the supermarket and malls.

Q.6 Do you know which sales promotinal activities does the company undertake for
Amul products?

a.) Price off b) Free samples c) Credit Facility

d) Advertisement e) Coupons f) P-O-P Displays

Promotional Activity Respondent

Price off 5
Free sample 5
Credit Facility 10
Advertisement 40
25
 Coupons 10
P_O_P Display 30
Total sample size 100

Promotional Activity
45
40
35
30
25
20 Promotional Activity
15
10
5
0
es t s
off pl cil
ity en on lay
ce m a m p isp
ri a F se u D
P es dit rti Co P
Fr
e
Cr
e v e O_
Ad P_

Interpretation:
As per this graph Advertising are main focus while making advertising they are more
focusing on current affairs. And second focus is providing P-O-P display provided selected
retailers.

Q.7. Are you interested in distribution of Amul dairy products?

a) Yes b) No

Interested in Distribution No. of respondent

Yes 90
No 10
Total sample size 100

26
 No. of Respondent
100
90
80
70
60 No. of Respondent
50
40
30
20
10
0
Yes No

Interpretation:
As per this graph 90 retailers are interested of distribution because the customer are Amul
products are more in Indian Market due to its quality & price of its products however it is
also Asia’s no. 1 Milk dairy.

Q.8. what is your expectation from Amul dairy products?

a) Margin b) Pakaging c) Availability

Retailer’s Expectation No. of Respondent

Margin 83
Pakaging 10
ability 7
Total sample size 100

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 Retailer expectation
90
80
70
60
50 Retailer expectation

40
30
20
10
0
margin Pakaging Availability

Interpretation:
As per this graph Retailers are expecting more margins on its products because their
competitors are providing more margins.

Q.9 Give you rating to following attributes of Amul dairy products?

Good Very Good Average Bad Very Bad

A. 30 40 10 5 0
B. Brand 30 50 8 2 0
Image
C. Availability 20 20 40 10 10
D. Packaging 30 20 30 10 10
E. Margin 10 5 20 45 20

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 50
45
40
35
30 Quality
Brand Image
25
Availability
20 Packaging
Margin
15
10
5
0
Good Very Good Average Bad Very Bad

Interpretation:
As per this graph Amul has provide good quality and Amul brand image is very good in dairy
market its provide average availability comparison other competitor, its packaging are good
but Amul has no provide a good margin to their retailers comparison other competitors.

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 CHAPTER 4
FINDINGS AND
SUGGESTION

30
1. "The company caters to the Indian palate, which is its primary driver of success". In
light of this statement, critically examine the marketing strategies adopted by Amul &
Parag Dairy to capture a sizeable market share of the organized Dairy based food
Product in India.

2. In the modern competitive scenario, promotion is a key element in the marketing mix
of a company. Critically analyze the promotion strategies adopted by Amul India Pvt.
Ltd. What other efforts must the company take to effectively promote its products?

3. Dairy based Products contribute a major share of the revenues of Amul. Given the
competitive scenario in the Dairy Products in India, where competitors such as Parag
Dairy are introducing several innovative products, what measures must Amul take to
remain competitive? Explain in detail.

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 CHAPTER 5
CONCLUSION

32
I have studied and analyzed the Dairy based food Product Market of Amul & Parag Dairy
Products at Agra on different aspects of the markets, outlets, distribution & consumers. The
survey was conducted in various areas of Agra city with great enthusiasm. This project
report Concludes that Amul & Parag Dairy are easily available in various parts of Agra. The
Parag distribution channel of the Amul is much strong the most important thing, which I feel
to improve is “the availability to retailers & consumers”.
The retailers & consumers both promotes either Amul or Parag Dairy of it’s brands for
could be with regard to order processing, warehousing, inventory management &
transportation; besides that shop covering, exit from the market by the salesmen glow
shine board, schemes, incentives, prizes, gifts, discount, returning of defective goods,
proper supply should be improved.
My job was to make marketing managers aware of all the problems so that a proper course of
action is required to be undertaken.

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 QUESTIONNAIRE

CUSTOMER: ADDRESS:

NAME: INCOME:

I. Which company's dairy product you use

a) Parag b) Amul
c) Others

II. Which of the product mostly you go for?

a) Ghee b) milk
c) Butter d) cheese

III. Are you satisfied with your product?

a) Yes b) No
REASON…

IV. Why are you inclined to your product?

a) Quality b) brand
c) Price d) taste

V. Do you like any change in product

a) Yes b) no

VI. IN WHICH PARAMETER: ……………………………

a) Taste b) price
c) Packing style d) quality

RETAILER: ADDRESS:
NAME: INCOME:

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 VII. In dairy products, which company product demand is higher?
a) Amul b) Parag dairy c) others

VIII. Reason……………………………………………
a) Price b) taste
c) Brand d) packing style

IX. Which product of Amul is preferred by customers?

a) Ghee b) milk
c) Cheese d) butter
e) Any other

REASON…
a) Price b) taste
c) Quality d) packing style

X. Which product of Parag dairy is preferred least by customers?

a) Ghee b) milk
c) Cheese d) butter
e) Any other

XI. Which product of amul is preferred least by customers?

a) Ghee b) milk
c) Cheese d) butter
e) Any other

XII. Which of Parag dairy is preferred least by customer?

a) Ghee b) milk
c) Cheese d) butter
e) Any other

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BIBLIOGRAPHY

36
 Internet/magazines/questionnarires/journals

Books:
1. Kotler Philip, “ Marketing Management”
2. Kothari C.R., “ Marketing Research”
3. Ramanuj Majumdar, “Product Management”

Websites:

1. http://www.amul.com
2. http://www.amuldairy.com
3. www.marketresearch.com
4. www.prabproducts.comwww.prabproduct.com
5. http://www.wikipedia.comwww.marketresearch.com

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