INTRODUCTION

INTRODUCTION
The FMCG sector is a cornerstone of the Indian economy. This sector can drive
growth, enhance quality of life, create jobs, and support penetration of technology. A
vibrant FMCG sector can boost agricultural product and export. It contributed to the
exchequer significantly, disperse technology across the value chain and usher in the
product innovation. This innovation can improve Indian Health standards.
Fast Moving Consumer Good (FMCG) industry has a long history. However, the
Indian FMCG began to take shape only during the last fifty-odd years Today, the Indian
FMCG industry continues to suffer from a definitional dilemma. In fact, the
industry is yet to crystallize in terms of definition and market, size, among others.
The definitional confusion that has marked the Indian FMCG industry is getting
confounded. Some others call it the CPG industry and some even call it the PMCG
industry. The Indian FMCG industry has suffered because of the confusion.
It is an industry which touches every aspect of human life from looks to hygiene
to palate. Perhaps defining as industry whose scope is so vast is not so easy.
The government is at crossroads not knowing how and where to slot the Indian
FMCG industry and unsurprisingly, the manner in which it has treated an industry which
holds tremendous promise as producer of goods that pervade everyday life has been only
callous. The facts that the FMCG industry is a noteworthy employer and a major tax
payer are being ignored.

The only thing that is cheering the industry are the reforms of the nineties. Post
reforms, the industries is excited about a burgeoning rural population whose income are
2

rising and which is a willing to spend on goods designed to improve lifestyle. What is
needed now is a change in the mindset of the mandarins, FMCG industry -friendly
legislation are the needs of the hour. It does not matter whether changes are being
brought about by dawning market realities or the ongoing economic reforms. One thing
is certain here: The Indian FMCG industry has a promising future to look forward to.
In terms of growth potential, the Indian market is a great horse to bet on. With a
little help and understanding from the government, the Indian FMCG can realize its true
potential.
MARKETING MIX

In market as there many types of products are available so it becomes difficult for the
marketers to peruse the right segment market so that they can position their product
effectively to target customer. In order for this they use mix of tools of marketing, which
is, know as marketing mix.
Marketing mix is a set of marketing tools that the firm uses to peruse its marketing
objectives in the target market. Theses tool s can be classified broadly into four Ps of
marketing, Product, Price, Place, and Promotion.

MARKETING MIX

PRODUCT
1. Variety
2. Quality
3. Design
4. Brand Name

PRICE
1. List Price
2. Discounts
3. Allowances
4. Credit Norms

PLACE
1. Channels
2. Coverage
3. Locations
4. Inventory

PROMOTION
1. Advertisements
2. Sales Force
3. Public Relations
4. Direct Marketing

TARGET MARKET

DISRIBUTUION CHANNEL
In todays economy, most producers do not sale goods directly to final consumer. But
between them and final consumer their stand host of marketing intermediaries such as
Brokers, Distributors, retailers, sales agents searching of customers and may negotiate on
behalf of the producers and do not take the title of the goods these are what called
middleman
A distribution channels performs the works of moving goods from the producer to
consumers. It overcomes the line, place and increases the utility of goods and services.

Collection of Milk Process In Parag

FARMERS

Village Cooperative
Societies (with
Chilling
Units)

Network Services
Veterinary
Services.
Animal
Husbandry.
Animal Feed
Factory.
Milk Can
Producer.
Agriculture
University.
Rural
Management
Institute.
Trucking
Facilities.

Village
Cooperative
Societies (without
Chilling
Units)

Local Restaurants/
Others Milk
Related Business

Milk Processing Union

& Warehouses

Milk Sold to
Village and Local
Residents

Chilling Plants

GDUSL Warehouses

Warehouses and C & S

Retailers

Home Delivery
Contractors

Customers

OBJECTIVE OF THE STUDY

OBJECTIVE OF THE STUDY

The most important objective of the project is that it is obligatory on the part of the
student of BBA programme to undergo the convention of the business administration in
the partial fulfillment of BBA. degree besides, project study is a sort of practical training
of eight weeks thus the student are benefited by undertaking such a study as it helps
organization in overcoming administrative, financial, marketing and other problems what
ever they may be interested in for the sake of simplicity the objectives of this study can
be classified under three heads:
PRINCIPAL OBJECTIVE

To find out the various strategies adopted by Parag to milk sales in Moradabad.

To find various ways to increase Parag milk sales in Moradabad.

To discover the various factors which hurdles people to take Parag milk.

To identify various factors which motivates people to use Parag milk.

SCOPE OF THE STUDY

SCOPE OF THE STUDY

SCOPE OF THE STUDY
The study is confined to to finding various strategies to be adapted by Parag to encounter
Amul sales only in Moradabad.

IMPORTANCE OF THE STUDY

Interviewing the distributors, retailers, and customers to ascertain brand sales, market
share, brand awareness and performance of competing brands. Tried to fill up
questionnaire before the customer of all levels.

LITERATURE REVIEW

10

LITERATURE REVIEW

Distribution Channel Activities

Distribution includes different range of activities (Richard Gay, 2007)

Linking many suppliers to provide wide range of consumer choice

Assist the exchange process - identify the needs of the buyer in the context
of product categories, quantities, range etc. and devise manufacturing,
inventory and packaging schedules to fit.

Marketing information: This encompass collection, distribution and

analysing marketing research information such as the past sales data about
the players within the organizations marketing environment.

Promotional activities- This involves setting of promotional objectives and

activating the various elements of the marketing communications mix and
measuring their effectiveness, this will encompass identify and communicate
with prospects.

Pricing: Deciding on the sales terms and conditions at each stage of the
value chain

Risk management - This includes analysis and resource sourcing required

for involvement in the channel , the degree of control and influence and the
potential benefits such as revenue and profit generation.

Physical Distribution Management - It includes the transportation all

aspects of warehousing management and information flows.

Other Activities that may be part of the distribution channels are as follows:

Order Generation.
11

Handling of Goods.

Shipping of Goods.

Storage of Goods.

Display of Goods.

Promotion of Goods.

Sale.

Feedback.

Distribution Channel Management

Distribution Channel Management is all about getting the product or service to the right
people at the right time under the constraints of profits, efficiency and effectiveness.
Successful marketing does not end when a business has developed a product or service
and has found its appropriate target audience with a view to selling it at the 'right price'.
The next issue that needs to be faced is how they are going to distribute and sell this
product/service to these people- the consumers. When a product/service is purchased by
a consumer, it may have been bought directly from the business, or it may have been
through a number of intermediaries (wholesaler, retailer, etc.): these are known as
distribution channels. Small businesses need to acknowledge the different types of
distribution channels to utilize sales potential.
Distribution channel management involves a lot of channel decisions, strategic
alternatives and numerous linking concepts, all of which would be explored in my
research paper.
Distribution channel management involves a lot of channel decisions, strategic
alternatives and numerous linking concepts.
The PC industry is driven by rapid technological improvements in components,
particularly microprocessors, other semiconductors, and storage devices. The improved
12

performance of hardware has been matched historically by increased complexity of

software, creating demand for the latest hardware.
This means that time is a critical competitive factor in the industry in two ways:

Firstly, excess inventory loses value (at an estimated 10% per month ;) and
costs money;

Secondly, products incorporating the most advanced technologies are in

high demand and carry a price premium.

As a result, companies that minimize inventory and bring new products to market faster
can reduce costs, increase market share, and maintain higher margins. Two factors come
into play in determining the ability of PC companies to manage inventory and introduce
new products. First is the standardized, modular nature of the PC. PCs are built from
standard components, using common architectural interfaces determined largely by Intel,
Microsoft, and, earlier, IBM. PC makers also can outsource much of their production and
purchase components from a well-established production network of contract
manufacturers and components suppliers. This makes it quite easy for PC companies to
introduce new PCs with the most advanced technologies. By the 1990s, PC makers could
no longer gain much of an edge by virtue of design and manufacturing, as everyone had
access to the same technical information and supply base. The difference among PC
companies was determined increasingly by the second factor-the structure of distribution.
The traditional distribution system of the PC industry is an indirect model often referred
to as "the channel". The PC maker sells its products to distributors, who buy products
from many manufacturers and then sell them to a variety of retailers, resellers, system
integrators, and others, who sell products and services to the final customer. This
distribution system was an effective means for distributing high volumes of PCs with a

13

variety of configurations to reach a broad customer base. However, it had inherent

weaknesses that left it vulnerable in a time-based competitive environment.
First was its reliance on market forecasting to drive production. Even the most successful
PC makers, such as IBM, Apple, and Compaq, were chronically bedevilled by their
inability to accurately forecast demand in a market driven by ever shorter product cycles.
They were either caught with short supplies of hot products, causing them to lose sales to
competitors, or stuck with excess inventories of slow sellers, which clogged the
distribution channels and often had to be sold at a loss to move them out. Even with the
best forecasting, the indirect model was plagued by the need to hold inventory at each
step.
In the early 1990s, it was common for PC makers to have up to 90 days of inventory on
hand and in the channel. The high inventory costs and lack of responsiveness of the
indirect channel meant that there was an opportunity for someone who could a way to
circumvent the channel.
The company that seized this opportunity was Dell, which pioneered a new business
model based on selling PCs directly to the final customer, and building the PC only when
an order was received Selling directly removes two links in the supply chain where
inventory could build up and also enables Dell to know its final customers, provide better
service to them, and promote repeat or expanded sales to them.
Build-to-order production allows Dell to introduce new technologies as soon as
customers want them and makes it possible to adjust production to demand very quickly.
It also means that Dell does not purchase components and assemble PCs until it has
received payment from the customer, giving the company a negative cash conversion
cycle in which it receives payment from customers before it must pay suppliers.

14

The current environment for the computer hardware industry is shaped by several macro
forces. Primarily, Dell and its competitors are influenced by economic, demographic,
technological and national forces. Government, social, physical and national forces
peripherally affect the computer hardware industry to varying degrees. The
commoditization of the personal computer-a vital tool for business and consumer.
Customers- are a key driver for the economics of this industry. Corporate spending
accounts for 80% of all technology spending, and economic conditions decreasing
business capital expenditures has a negative and direct impact on the computer hardware
industry. While this industry is mature in the U.S., leading to decreased growth
expectations, computer spending by other countries around the world will likely fill this
void.
Pricing in the computer manufacturing industry is extremely competitive. IT reflects the
rapid pace of technological change and decreasing PC costs. Since 2000, the prices of
chips and disk drives declined and the standardization of primary components of PCs led
to a decline in PC prices. Direct sellers, including Dell, have traditionally been able to
under-price indirect sellers in the industry including Compaq and HP. However, most PC
vendors now offer a desktop model for less than $500 and a laptop for $700. Key success
factors for companies in this industry continue to evolve as the industry matures.
Specifically, they include:

Competitive prices

Superior relationships with suppliers

Product customization for business and consumer customers

Quality customer service

Excellent cost structure

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Channel Issues
Some of the channels issues that the companies face are as follows
1.

Product related issues

2.

Promotions related issue

3.

Pricing related issues

4.

Target market related issue

Product related issues:

The nature and type of the product decides the distribution option that should be chosen
for the product. A few products require special handling. Ex. Flowers, Fragile goods etc.
Promotion related issues:
The type of promotions that are required to sell the products to the customers also
decides the distribution options; there are products which require an extensive contact of
the sales person with the customer like automobiles etc. and there are products which
require no sales assistance from the sales person like milk etc.
Pricing issues:
The price at which the marketer desires to sell their product also decides the distribution
option for the channel if a product is prices really less it cannot have many members in
the distribution channel as each one of them looks at making their own profit in the
channel.
Target market issues:
The distribution channel is successful only if the product can reach the right customer.
Choosing a distribution channel is the path to reach the target customer. A key decision in
setting of a channel arrangement is for the marketer to choose the approach to reach his
target customer in the best possible manner.

16

Malaria is by far the most important insect transmitted disease (Gilles and Warrell,
1993). The distribution of malaria is not uniform, because of geographical
differences in altitude, rainfall and humidity. These factors influence transmission
patterns, as they determine vector densities and intensity of biting.
Of the total world population about 5.4 billion people, 2200 million are exposed to
malarial infections in 90 countries. The most recent estimates indicate that there are may
be 300-500 million clinical cases each year, with countries in sub-Saharan Africa
accounting for more than 90% of these (WHO, 2005).
Malaria is also the cause of an estimated 1.4 2.6 million deaths worldwide every
year, with more than 90% in Africa alone (WHO, 2005). Therefore malaria
continues to be an important disease in the tropics posing as a major obstacle to
sustainable development (Sachs and Malaney, 2002).
In sub-Saharan Africa, malaria is directly responsible for one in five childhood
deaths and acts in synergisms with other illnesses such as respiratory infections
which cause even higher proportion of childhood morbidity and mortality (Breman
et al., 2001).
In Kenya, out of a total of about 32 million, an estimated 8.2 million cases of
malaria are reported every year. Malaria is also the most common reason for
hospital admissions (22,000 cases/year in public hospitals) and kills about 26,000
children less than five years of age every year (Kindermans, 2002). Infected
pregnant women suffer severe anaemia and have a high likelihood of delivering
infants with low birth weight (Menendez, 1999).
The cumulative human suffering and economic loss caused by malaria is immense
(Snow et al., 1998). Most of Kenyan households especially in endemic areas are
affected by the financial hardship caused by malaria. It is estimated that 170
17

million working days are lost each year because of malarial illness, which in turn
affects the countries economy, leading to increased poverty (DOMC, Ministry of
Health, 2005).

2.1 Malaria
Malaria is a life-threatening parasitic disease transmitted by mosquitoes. It was once
thought that the disease came from fetid marshes, hence the name malaria, (bad air)
(RBM, 2001). In 1880, scientists discovered the real cause of malaria to be a one-cell
protozoan parasite called Plasmodium. Later they discovered that the parasite is
transmitted from person to person through the bite of a female Anopheles mosquito,
which requires blood to develop her eggs (RBM, 2001)

2.2 Burden of Malaria

At the end of 2004, 107 countries and territories had areas at risk of malaria
transmission. An estimated 350500 million clinical malaria episodes occur annually;
most of these are caused by infection with Plasmodium falciparum and Plasmodium
vivax. (WHO, 2005).
The estimated proportion of Africans at risk of malaria is 66% (Hay et al., 2004) while
the estimated contribution of malaria to the global burden of clinical malaria cases is
59% (Korenromp, 2004).
The estimated contribution of Africans to the global burden of clinical falciparum
malaria cases is 74% (Korenromp, 2004) and estimated contribution to the global malaria
mortality burden is 89% ( WHO Report, 2003).

18

COMPANY PROFILE

19

COMPANY PROFILE
The common brand name of the company is PARAG the meaning of PARAG is
the pollen of flower the slogan in the logo is: -

PURE NATURAL & GOOD HEALTH

Parag milk shed is situated in the Lucknow, the capital of Uttar Pradesh since
independence it has formed part of the traditional supply line of agriculture products
from the village to the big cities rich in its milk potential the milk shed has, in the source
of last few decades been thoroughly exploited by small traders and powerful contractors
and well organized private dairies. Thus, while such intermediaries were retaining large
profits the rural milk producers found their position deteriorating day by day.
In 1950-a co-operative milk supply union was organized in Lucknow , which
started collecting milk from village and supplied to Lucknow and local markets. This
milk union continued function for about a decade, in the mean time Lucknow milk
scheme was established by government of India in 1959-60 to ensure cheaper milk to the
local pollution of Lucknow. The scheme started operating through 12 chilling centers in
Eastern Uttar Pradesh. These chilling centers were mainly coated in thither district of
Lucknow , Barabanki, Raebareli , Kanpur, Unnao, Sitapur etc . The milk was mainly
collected through contractors. 10 milk unions were also found almost at the same time,
around each chilling center. These continued functioning in a rather lop-sided manner till
1977.
Gradually all the milk union almost become defunctioning and was supplying
very little quantity of milk during the years 1970-77. Obviously contractors had
monopoly and collected major share of milk which was either supplied to Lucknow or to
the local population of the city.
20

This programmer was launched in Uttar Pradesh in 1972 and the implementing
agency in the was pradeshik cooperative dairy federation limited which was framed
in the year. The basic idea was to replicate anand pattern societies in Uttar Pradesh. In
august September 1972 organization of societies in Lucknow district was taken up bar
out, Mohanlalganj, Amausi blocks. A spear head team from national dairy development
board was posted in Lucknow , which started functioning from April 1978 with a team of
27 employees drawn from Lucknow milk 198 milk procurement cooperative societies
by the year 1981, when the operation fllod-14 programme ended.
Feeded balancing dairy, Lucknow Producers Co-operative Milk Union Ltd was set up
under operation flood-1 programmer with the specific purpose of supplying milk of local
markets and other districts.
Dairies and conversion surplus milk into various dairy products. This dairy is situated in
the middle of Lucknow . The dairy was commissioned in April 1978 and processed the
liquid milk procured from the then

milk shed comprising Lucknow, Raebareli,

Barabanki and Unnao.

The purpose of establishing feeder balancing dairy, Lucknow co was to provide
remunerative market for milk produced in the milk shed comprising district of
Lucknow , Barabanki, Raebareli, Kanpur and Sitapur as envisaged under operation
flood-1 scheme. Thus feeder balancing dairy was oblized to receive entire surplus milk
from the rural areas, through a network of milk coop. In 1978-79 the average handing of
milk per day at fbd-Lucknow Producers Co-operative Milk Union Ltd was 49,300kg.
With peak handing of 1, 04,950kg in the feb.
In April 1981 Lucknow Producers 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 .
21

AMUL COMPANY PROFILE

In the year 1946 the first milk union was established. This union was started with
250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the
union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS
UNION. This union selected the brand name AMUL in 1955.
The brand name Amul means AMULYA. This word derived form the
Sanskrit word AMULYA which means PRICELESS. A quality control expert in
Anand had suggested the brand name AMUL. Amul products have been in use in
millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray,
Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul
Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6
billion in 2005). Today Amul is a symbol of many things like of the high-quality
products sold at reasonable prices, of the genesis of a vast co-operative network, of the
triumph of indigenous technology, of the marketing savvy of a farmers' organization.
And have a proven model for dairy development (Generally known as ANAND
PATTERN).
In the early 40s, the main sources of earning for the farmers of Kaira district
were farming and selling of milk. That time there was high demand for milk in Bombay.
The main supplier of the milk was Polson dairy limited, which was a privately owned
company and held monopoly over the supply of milk at Bombay from the Kaira district.
This system leads to exploitation of poor and illiterates farmers by the private traders.
The traders used to beside the prices of milk and the farmers were forced to accept it
without uttering a single word.
22

However, when the exploitation became intolerable, the farmers were frustrated.
They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in
the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by
establishing a co-operative union, Instead of supplying milk to private traders. Sardar
Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help.
Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He
advised the farmers to form a society for collection of the milk.

These village societies would collect the milk themselves and would decide the prices at
which they can sell the milk. The district union was also form to collect the milk from
such village co-operative societies and to sell them. It was also resolved that the
Government should be asked to buy milk from the union.

However, the govt. did not seem to help farmers by any means. It gave the
negative response by turning down the demand for the milk. To respond to this action of
govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single
23

drop of milk was sold to the traders. As a result the Bombay milk scheme was severely
affected. The milk commissioner of Bombay then visited Anand to assess the situation.
Having seemed the condition, he decided to fulfill the farmers demand.
Thus their cooperative unions were forced at the village and district level to
collect and sell milk on a cooperative basis, without the intervention of Government. Mr.
Verghese Kurien showed main interest in establishing union who was supported by Shri
Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the
village level. The Kaira district milk producers union was thus established in ANAND
and was registered formally on 14th December 1946. Since farmers sold all the milk in
Anand through a co-operative union, it was commonly resolved to sell the milk under the
brand name AMUL.

24

At the initial stage only 250 liters of milk was collected everyday. But with the
growing awareness of the benefits of the cooperativeness, the collection of milk
increased. Today Amul collect 11 lakhs liters of milk everyday. Since milk was a
perishable commodity it becomes difficult to preserve milk flora longer period. Besides
when the milk was to be collected from the far places, there was a fear of spoiling of
milk. To overcome this problem the union thought out to develop the chilling unit at
various junctions, which would collect the milk and could chill it, so as to preserve it for
a longer period. Thus, today Amul has more than 150 chilling centers in various
villages. Milk is collected from almost 1073 societies.
With the financial help from UNICEF, assistance from the govt. of New Zealand
under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and
butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on
November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India
declared it open at Amul dairy on November 20, 1955.

PEOPLE POWER: AMUL'S SECRET OF SUCCESS

25

The system succeeded mainly because it provides an assured market at remunerative

prices for producers' milk besides acting as a channel to market the production
enhancement package. What's more, it does not disturb the agro-system of the farmers. It
also enables the consumer an access to high quality milk and milk products. Contrary to
the traditional system, when the profit of the business was cornered by the middlemen,
the system ensured that the profit goes to the participants for their socio-economic
upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a pattern and
model for emulation elsewhere.

Amul has been able to:

Produce an appropriate blend of the policy makers farmers board of management

and the professionals: each group appreciating its rotes and limitations,

Bring at the command of the rural milk producers the best of the technology and
harness its fruit for betterment.

Provide a support system to the milk producers without disturbing their agroeconomic systems,

Plough back the profits, by prudent use of men, material and machines, in the
rural sector for the common good and betterment of the member producers and

Even though, growing with time and on scale, it has remained with the smallest
producer members. In that sense. Amul is an example par excellence, of an
intervention for rural change.

26

The Union looks after policy formulation, processing and marketing of milk, provision

of technical inputs to enhance milk yield of animals, the artificial insemination service,
veterinary care, better feeds and the like - all through the village societies. Basically the
union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK
UNION LIMITED), a name which suggest THE TASTE OF INDIA.
Plants
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee,
milk powder, flavored milk and buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul,

Amul Ganthia and Amul lite.

27

PRODUCT PROFILE

28

PRODUCT PROFILE
MILK PRODUCTS
(1) Butter
It contains less than 80% milk fat and more than 15% moisture and high acidity.
It is prepared exclusively from milk cream of curd of cow or buffalo milk without the
addition of salt, color or any preservative and is intended for cooking or for preparation
of Ghee.
(2) Ghee
About 43% of total quantity of milk produced in India is manufactured first into
butter and then converted into Ghee. Bulk of Ghee is derived from buffalo milk because
it is richer in fat that cow milk. In Parag surplus butter is mutted in steam jacket kettles.
Which are equipped with mechanical stirrers and heated with steam till the moisture is
removed.
(3) Paneer
In Parag, Paneer is produced by the traditional method in which citric acid is
added to the boiled milk and the milk immediately gets adulterated and water is
separated and paneer is obtained. It contains less than 50% frat of more than 60%
moisture.
(4) Others
Skimmed milk powder, cake and khoya are other products produced by Parag.

Future Products

29

Some new products like coffee powder, ready to make ice-cream powder, baby
food and other milk drinks are in the testing stages.
PARAGS MILK PRODUCTS:

Butter available in 20 gm., 100 gm., and 500 gm. packs.

Pure Ghee available Kg.

Paneer - available in 100 gm.

Skimmed milk powder - in 500 gm. cartons & 200 & 500 gm. plastic bottles.

30

31

32

RATE OF MILK AND MILK PRODUCT

Name of Milk & Milk Product

Agent Rate

Consumer Rate

1. F.C.M.

25.50P/L

27.00

2. TONED MILK

22.00P/L

23.00

3. JANTA MILK

24.00 P/L

25.00

4. LOOSE MILK (IN CANTS)

25.00 P/L

28.00

5. GHEE/1LITER PACK

215.00 P/L

250.00

6. BUTTER 100 GRAM

15 RS

20 RS

7. BUTTER 500 GRAM

72.50 RS

90 RS

8. PANEER

190.00 P/KG

200.00

9. MATTHA (200 ML)

4.50 P.P.

5.00

10. DAHI

28.00 P. CUP

30.00

QUALITY CONTROL
33

Quality control is an essential and most important department for any manufacturer.
Today every organization has efficient quality control system.
Quality control is depend upon only practical (Survey Analysis and Right Procedure).
In D.U.S.S. Ltd. MORADABAD at reception point of milk from different societies
(Producers Villagers) Milk is collected and basic test are carried out quickly after
cleaning it is send for further processing. Finally after pasteurization three type of milk
obtain that is Full cream milk. Toned Milk, Janta Milk.
Milk procedure out through some stages---------------------1. ORGANO LEPTIC TEST
It passes through three stages this is the first type of testing milk.

Seeing

Smell

Testing

2. CLOT ON BOILING TEST

After testing checking is done between good and pour milk.

Formalin test

Soda test

Urea test

Sugar test

Caustic test

These tests are based on c lot on boiling test

3. S.P.C. (Standard plate count) TEST
34

In this type of testing not more than 25000 Bacterias should be present in one ml
of milk.
4. CLR (Correct Lacto Meter Reading) Test
In this type of testing is done to find out quantity of water in milk.
11%, 135% should be is LATIC ACID in the milk.
5. M.B.R.T. (Methyl Blue Reduction Test)
M.B.R.T. test is done for milk pasteurization. Heating temperature should be 72
80 Degree centigrade. Chilled temperature should be 5 degree below
6. S.N.F. Test (Solid not fat)
S.N.F. test is based on lactometer test.
S.N.F.=CLR/R x .2 X fat %+.29 (this formula is used for Big lactometer)
S.N.F.=CLR/4 x .2 x 5%+.50 (this formula is used for small lactometer)
AFTER STERILIZATION NUMBER OF VITAL TEST ARE EXECUTED
1. TOTAL SOLID TEST
2. ACIDITY TEST
3. SUCROSE TEST
4. TEXTURE TEST
5. MILK FAT TEST Milk fat teat is used in GURBUR MACHINE and ACID.
FAT = 5 ML (Sulfuric Acid) + 10 ML Milk + 1 ML (Ethyl Alcohol)
This mixture is rotated in GURBUR MACHINE and quantity of fat in milk is seen. The
most important test i.e. phosphorous test and Methyl test Blue reduction test.
1.

Phosphorous test is user for confirm the pasteurization of milk.

35

2.

M.B.R.T. (Methyl Blue Reduction) test is used for maintaining appropriate

quality of milk in every half an hour. It is done with full responsibility and care so
that the offered product to the consumer could be reached with appropriate
CALORIFIC VALUE.

INNOVATIONS TO BE MADE
Potential for Process Innovations
The modernization of the manufacturing process of traditional dairy products is long
overdue. But, there is no need to reinvent the wheel because some of the food processing
methods available in the west can be usefully adapted to mass-produce traditional
products. Some process modifications may, however, become necessary.

36

AMUL PRODUCTS
Check out this vast and ever-growing range of 'tasteful' Amul delectables!
Bread Spreads
Amul Butter
Utterly Butterly
Delicious

Amul Lite
Low fat, low
Cholesterol Bread
Spread

Delicious Table
Margarine
The Delicious way to
eat healthy

Milk Drinks
Amul Kool Millk

Amul Kool

Shaake

Amul Kool Cafe

Kool Koko
A delight to Chocolate
Lovers. Delicious
Chocolate taste

Nutramul Energy

Amul Kool Chocolate

Drink

Milk

A drink for Kids provides energy to suit

the needs of growing
Kids

37

Amul Kool Flavoured

Amul Kool Flavoured

Bottled Milk

Tetra Pack

Amul Masti Spiced

Amul Lassee

Buttermilk
Amul introduces the
Best Thirst Quenching
Drink
Amul Kool Thandai

38

RESEARCH
METHODOLOGY

39

RESEARCH METHODOLOGY
Research:The study of research method provides you with the knowledge and skills you need to
solve the problem and meet the challenges of the fast- based decision. Marketing
environment we define Business Research as a systematic inquiry whose objective is to
provide information to solve managerial problem.

RESEARCH OBJECTIVES:

To find out the various strategies to be adapted by Parag of milk Sales Promotion in
Moradabad.

To find various ways to increase the sales of Parag milk in Moradabad region.

To discover the various factors which hurdles people to take Parag milk.

To identify various factors, which motivates people to use Parag milk.

To discover the main reason for shifting of customers from Parag milk to others.

PRELIMINARY INVESTIGATON:
After getting through of the research objective I go through step of the preliminary
investigation to find out the necessary information to fill out the objectives of the study.
The information expected to be collected on the basis of the preliminary investigation
are:1. The strategy of company for competing with the other company.
2. To find various ways to increase the sales of Parag milk in Moradabad region
3. The main reason for shifting of customers from Parag milk to others.

40

FOCUS OF STUDY:
This study mainly focuses on:1. The satisfaction level of consumer and retailer. The study based on the feedback
collected from the filled questionnaire.
2. Whether the retailer and consumer satisfied with the supplied product or not.
3. If customer is satisfied up to what extent & if is not satisfied why, what is the
reason behind this.
Sampling:
I used Random Sampling because from a finite population refer to that method
of sample selection which gives each of possible sample of combination an
equal probability of being picked up and each item in the entire population
to have an equal chance of being included in the sample.
Sample:The data has been collected by selecting a sample size of 100 sellers and 250
consumers, and various sampling techniques has been used to collect data. sampling
techniques which has been used in data
COLLECTION OF DATA
Secondary data has been collected from
Secondary data is what the researcher collects from different sources . It also helps me to
get elaborate information to do my research.
Books
Magazines
Internet
Company annual reports
Research papers

41

 Govt. Publications
Past Records And Files
Journals and periodicals pertaining to different brands and segments of milk.
PRIMARY DATA
The primary data have been collected with the help of a questionnaire, prepared specially
for the retailers and consumers to be administered for their responses

Questionnaire

Direct Interview.
ADVANTAGE OF SAMPLING OVER COMPLETE CENSUS

The main advantage of sampling technique over the complete enumeration survey may
be outlined as follows:
Less time
Reduced the cost of survey
Grate accuracy of the result
Greater scope
Both primary as well as secondry data has been used in the study.
Research design: Since the basic solution of the problem lies in understanding the human behviour and
processing Numeric figures. Therefore the following research design and techniques has
been used to carry research:
Qualitative research
Quantitative research
Depth interview
42

 Indirect research (used in need)

43

Data Analysis
Moradabad Producers Co-Operative Milk Union Ltd
Survey Area- Moradabad Region
I Have meet with around 100 sellers of milk and found the following
information from the agents answer of the relevant questionnaire. These
charts are made according to the found data during summer training on 100
questionnaire.

Product

No. of Agents

Parag

60

Amul

40
Table No. 1

Chart No. 1

INTERPRATAION- Here I have taken sample size of agents is 100 to

understand the total market share of milk brand. There for we can see that
shop parag is more than Amul only 40% shops sale the Amul out of 100%
and Parag shop is 60%.
44

Q. How Much Crates you sold in a day?

Product

No. of Crates

Parag

790

Amul

748
Table No. 2

Chart No. 2

INTERPRATAION - Sale of milk per day, of parag is 790 crates per day
and sale of amul milk is 748 crates per day. Sale of Parag milk is better than
Amul.

45

Q- Are the availability of Parag milk is sufficient?

Response

Percentage

Yes

80%

No

20%
Table No. 3

Chart No. 3

INTERPRATAION -

In my survey 80% agents satisfied with the

availability of milk and 20% agents are not satisfied the availability of the
milk.

46

Q- Are you satisfied with product delivery time?

Response

Percentage

Yes

53%

No

47%
Table No. 4

Chart No. 4

INTERPRATAION - 53% of agents said that delivery time of product is

good and 47% agents said that is bad.

47

Q- Margin of Sales is sufficient or not?

Response

Percentage

Yes

30%

No

70%
Table No. 5

Chart No. 5

INTERPRATAION - Most of the agents said that margin of sale is not

sufficient and few agents said that margin of sale is sufficient.

48

Q- Quality of Parag is
Response

Percentage

Excellent

33%

Good

46%

Average

13%

Bad

8%
Table No. 7

Chart No. 7
INTERPRATAION - During the survey 33% agents said that the quality
of parag is excellent, 46% said good, 13% said average and only 8% said
that the quality of parag is bad.

49

Q- Customer purchase milk because of

Factor

Percentage

Taste

23%

Quality

54%

Availability
Others

15%
8%
Table No. 8

Chart No. 8

INTERPRATAION - In my survey agents said that 23% customer

purchase parag due to price, 54% due to quality, 15% due to availability and
8% due to others reason.
Report of Consumer
50

Q- Which Brand do you use?

Product

Percentage

Parg

47%

Amul

33%

Others

20%
Table No. 1

Chart No. 1
ITERPRATAION: During my survey it was observed that 47% consumers
consume Parag milk , while 33% consumers consume Amul milk and 20%
consumers consume other Milk brands including loose milk supplied by
milkmen.

Q- How do you know about Parag Milk?

51

Medium

Percentage

Advertisement

53%

Shopkeeper

32%

Others

15%
Table No. 2

Chart No. 2
INTERPRETATION: When customers were asked that how do They came
to know about Parag milk 53% of customers replied through advertisement,
32% of Customers replied through their local shopkeepers and 15% Of
customers replied by other means.

Q- Quantity Consumed by you?

52

Quantity

Percentage

3 Litre

30%

2 Litre

45%

1+ Litre

13%

1 Litre

12%
Table No. 3

Chart No. 3

INTERPRETATION: I found my survey that 30% consumer consume 3

liter milk per day , 45% consumer consume 2 liter milk per day & 13 %
consumer consume 1+ liter per day while only 12% consumer consume 1
liter of milk per

Q- Why do you choose a particular brand?

53

Reason

Percentage

Home Delivery

10%

Easy Availability

23%

Price

22%

Quality

45%
Table No. 4

Chart No. 4
INTERPRETATION: It was observed during survey that different person
consume a particular brand because Of many factors. 10% of consumers
consume a particular Brand of milk because of Home Delivery, while 23%
of consumers Consume a particular band of milk because of Easy
availability and 22% of consumers consume a particular brand because of
Price, 45% of consumers consume a Particular brand because of Quality of
the product provided to them by the company.

Q- Why are you using Parag Milk?

54

Reason

Percentage

Home Delivery

5%

Easy Availability

28%

Price

16%

Quality

51%
Table No. 5

Chart No. 5
INTERPRETATION: When the customers using Parag milk where asked
that they Use Parag milk the 5% of customers replied with the answer
Because of Home Delivery of the Milk , 28% of customers replied with the
answer because of Easy Availability, while 16% of customers replied with
the answer that Because of Parag Milk price is very good and rest 51%
replied with that the quality of parag milk is very good.
Q- Why are you not using Parag Milk?
55

Reason

Percentage

Home Delivery

9%

Easy Availability

18%

Price

47%

Quality

26%
Table No. 6

Chart No. 6
INTERPRETATION: When customers not using Parag milk were asked
reason for not using the Parag milk many reasons were found . 9% of the
customers do not prefer Parag because of its high price,18% of consumers
do not consume Parag milk because of non-availability of the Parag milk at
their nearest shopkeepers, while 47% of customers do not use Parag milk
because of no home delivery service , 26% of consumers do not prefer
Parag milk because of Low Quality of Parag milk which they found in
parag as their consideration.
Q- How do you Purchase Milk?
56

Medium

Percentage

Yourself

83%

Home delivery

17%
Table No. 7

Chart No. 7

INTERPRETATION: When customers were asked that How do they

Purchase the milk than 83% of customers with the Answer themselves and
17% of the customers responded with the answer Home Delivery.

Q- Do you want home delivery facility?

57

Response

Percentage

Yes

88%

No

12%
Table No. 8

Chart No. 8

INTERPRETATION: When customers were asked that do they want home

delivery of Parag milk, 88% of customers with the Answer yes and 12% of
the customers responded with the answer no.

Q- Do you want home delivery facility regarding extra charge?

58

Response

Percentage

Yes

75%

No

25%
Table No. 9

Chart No. 9

INTERPRETATION: When customers were asked that do they want home

delivery with extra charges of Parag milk, 75% of customers with the
Answer yes and 25% of the customers responded with the answer no.

Q- What type of Parag Milk do you used?

59

Type Of Milk

Percentage

Standardized

37%

Full Cream

33%

Toned Milk

20%

Loose Milk

10%
Table No. 10

Chart No. 10
INTERPRETATION: When customers were asked that what type of Parag
milk do they use more 37% of customers replied with standardized
milk,33% answered Full Cream, Toned Milk 20% and 10% preferred loose
milk.

Q- Overall Experience with Parag?

60

Response

Percentage

Excellent

10%

Good

61%

Fair

22%

Poor

7%
Table No. 12

Chart No. 12

INTERPRETATION: When customers were asked that what is the overall

experience with Parag then, 10% of customers replied with the Answer
excellent, 61% customers replied good, 22% customers replied fair and 7%
of the customers responded with the answer poor.

61

CONCLUSION

CONCLUSION
62

In Moradabad region, Parag has competitors like Amul, and other private milk sellers.
Among all these Amul is strongest Competitors in the field of butter while Anik and
PARAG sell ghee but in the field of packed milk PARAG is leading brand. If brands like
Amul, are not taken seriously definitely after few span of time they can take much share
of PARAG. So PARAG should take seriously this matter. The supply of private milk
product is not constant
FINDING OF RETAILER SURVEY

Most of the retailers associate themselves with Parag milk.

Parag products are sold more than others.
Retailer if provided more cooling equipment promises to stock more Parag
products.

Retailers have problem of advertising material, schemes related material of Parag.

Retailers are more interested in products of those companies, which offers more
margins to them.
FINDINGS OF ADVERTISEMENT

Mainly Parag in Moradabad is not making advertisement through.

Media of advertise.

Stickers, Bunting, dangles

Dealers brand.

Hoarding.

Glow sign.

Poster

Television Advertising
63

Newspaper and magazines

Wall painting.

FINDING S OF PRICE
Price is charged same as is charged by Amul, and rates are almost same everywhere
except in cinema Halls, Restaurents, Railway stations and hostels where products are
sold at higher price.
Price ranges from Rs.25 per litre & Rs. 50 per litre.
Most of them vanish in the summers. But PARAG and Amul can compete future.

64

SUGGESTIONS

65

SUGGESTIONS

Parag should change the packing as it is not attractive and do not seems
to be standard and hygienic.
Parag should make 24hour availability of milk In the market in order to
improve their Sales.
Parag milk should be kept available at every shop.
<<<<,

Parag should offer refrigerators On installments to retailers.

Parag should give emphasis on Punctuality and regularity in the Supply
of milk.
Parag offer promotional schemes to retailers as is done by Amul.
Parag should offer some extra benefit to his customer and supplier.

66

LIMITATIONS

67

LIMITATIONS
Limitations of study and difficulties encountered:
Nothing in this universe is free from Limitations and present project
is not an Acceptation to it. Due to certain restrictions on the part of potential
customers as well as actual customers and Suppressed and based responses
from them ,appropriate Figure for relevant data and their interpretation
Precisely this has been my personal experience while Carrying out the
present study. Some of the limitations I found and difficulties encountered
can be enumerated as under:
Annual reports and journals in the company was not readily available.
Due to time and budgetary constraint ,the sample size was restricted.
The salesmen at the outlets showed their discontent with the tight
schedule.
Most of the retail respondents showed their discontent with the
company for its unsystematic distribution, replacement, short
supply,incentives,margin and so they were reluctant to talk about the
company.
People of the region were not conscious about the survey, so they
were not much supportive.

68

 Near about 30% population of the city takes the service of servants to
bring their milk from market and reason for their brand selection was
not known.
Many people do not know themselves why they use any particular
brand as their answer was we use brand because we like it so
the actual reason behind their liking was not confirmed. Many
retailers do not like to interact because of their business. People are
not interested to fill questionnaire as they think it wastage of time,
this is again because of less scope of research in India

69

BIBLIOGRAPHY

70

BIBLIOGRAPHY

BOOK REFERRED
1 : Collis J & Hussey R, Business Research (Palgrave,2003)

2: Beri G C -Marketing Research ( Tata McGraw-Hill ), 1993,2nd Edition

3 : Philip Kotler Marketing Management ( Pearson Edition ), 12th Edition
4 : Kothari C R Research Methodology (New Lucknow, Vikas Publication
House) 11th Edi.
NEWS PAPER
1)
2)
3)
4)

The Hindu
Times of India
Dainik Jagaran
Business Standard

WEBSITE

www.indiandairy.com
www.amulindia.com
www.indiainfoline.com
www.webindia123.com

71

ANNEXURE

ANNEXURE
QUESTIONNAIRE
72

RETAILER SURVEY FORM

Name of the shop

___________________________

Address

___________________________

Tel. No.

___________________________

Q.no.1: What are the milks you usually keep in your shop?
a) Parag
b) Amul
c) Mother Dairy
d) Others
Q.no.2: Rate these milks in terms of volume of sales from 1 to 4.
a) Amul
b) Parag
c) Mother Dairy
d) Others
Q.no.3: Does packing play any role in promoting sales?

a) Yes

No

Q.no.4: How you sold the milk?

a) At M.R.P.

Less than M.R.P.

b) More than M.R.P.

Q.no.5: How would you compare the services of Parag and Amul on the following?
(Rank 1 to 4)
Parag

Amul

____

____

b) Timely delivery

____

____

c) Display support

____

____

d) Any other

____

__

a) Frequency of visit of sales

personnel

Q.no.6: Customer purchase milk because of:

a) Price
73

b) Quality

c)

Availability

d) Others
Q.no.7: Behavior of Driver
a) Good
b) Excellent
c) Bad
d) Average
Q.no.8: Quality of Parag
a) Good
b) Excellent
c) Bad
d) Average
Q.no.9: Product delivery time
a) Good
b) Bad
Q.no.10: Agent originally belongs to
a) Parag
b) Amul
Q.no.11: Margin on sales
a) Yes
b) No

74