Market Growth Dynamics of Cheese Parag Milk Foods Ltd
“A STUDY ON MARKET GROWTH DYNAMICS OF
CHEESE” At PARAG MILK FOODS Project Report Submitted in Partial Fulfilment of the requirementsFor the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION of BANGALORE UNIVERSITY SUBMITTED BY CHANDRAKANT PAWAR Reg. No. 14SKCMD034 Under the guidance of Prof .DR. ANUPAMA NATARAJAN AIMS Institutes, Bengaluru Mr Ajith S Area Sales Manager, Parag Milk Foods Ltd AIMS INSTITUTES 1ST Cross, 1st Stage, Peenya , Bangalore-560058 (2015-2016) Market Growth Dynamics of Cheese Parag Milk Foods Ltd DECLARATION BY THE STUDENT I hereby declare that the project entitled “MARKET GROWTH DYNAMICS OF CHEESE ” at Parag Milk Foods Ltd submitted in partial fulfilment of the requirements for the award of the degree of MBA at AIMS Institutes, affiliated to Bangalore University, Bangalore, is an authentic work carried out by me. I also declare that this project is the outcome of my own efforts and that it has not been submitted to any other University or Institute for the award of any other degree or Diploma or Certificate. Place: BANGALORE CHANDRAKANT PAWAR Date: 20/08/2015 (14SKCMD034) Market Growth Dynamics of Cheese Parag Milk Foods Ltd APPENDIX IV GUIDE CERTIFICATE This is to certify that the Project Report entitled “Market Growth Dynamics of Cheese” has been submitted by Mr Chandrakant Pawar (14SKCMD034) in partial fulfilment of the requirements for the award of Degree of MBA from Bangalore University, Bangalore is a record of work carried out by him under my guidance. Place: Bangalore Date: Signature Market Growth Dynamics of Cheese Parag Milk Foods Ltd APPENDIX V CERTIFICATE BY EXTERNAL MENTOR [Under The Seal and Signature] This is to certify that Mr CHANDRAKANT PAWAR of AIMS INSTITUES has undertaken Project on the topic “MARKET GROWTH DYNAMICS OF CHEESE ” between July and August is a record of work carried out by him under my guidance. Seal &Signature Market Growth Dynamics of Cheese Parag Milk Foods Ltd APPENDIX VI CERTIFICATE OF ORIGINALITY (To be given by the Institution on its letterhead) Date: This is to certify that the Project report entitled ”MARKET GROWTH DYNAMICS OF CHEESE”is an original work of Mr. CHANDRAKANT PAWAR; bearing University Register Number 14SKCMD034 and is being submitted in partial fulfilment for the award of the Master’s Degree in Business Administration of Bangalore University. The report has not been submitted earlier either to this University /Institution for the fulfilment of the requirement of any course of study. Mr CHANDRAKANT PAWAR is guided by Dr ANUPMAMA IYER who is the Faculty Guide as per the regulations of Bangalore University. SIGNATURE AND SEAL OF DIRECTOR / PRINCIPAL /HOD Market Growth Dynamics of Cheese Parag Milk Foods Ltd ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for Parag Milk Foods Pvt Ltd, Bangalore. It has been a great experience for me to undergo my summer training at “Parag Milk Foods”, which would be possible because of the support of people around me. I would like to extend my sincere thanks to all of them. I would like to express my gratitude to all those who gave me the encouragement to complete this project. I would like to thank my guide Dr. Anupama Director of MBA, College Authorities, C&PR Cell and for providing me the opportunity to work with one prestigious organization. I am highly indebted to Mr.Ajith.S and Mr.Manjunath.B.N of Parag Milk Foods, for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to give my special thanks to my parents, their love, support and blessing enabled me to complete this Project work. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities. Market Growth Dynamics of Cheese Parag Milk Foods Ltd EXECUTIVE SUMMARY Parag Milk Foods is one India’s largest private diary organisation and the largest producer of cheese in Asia. The project basic objectives are to understand the cheese consumption pattern among consumers and promoting Go and Govardhan brands of Parag Milk Foods in bangalore at the same time. In today’s competitive world while entering in the market it is very necessary to have good knowledge of the potential of a particular market. The information regarding the activities of competitor’s existing in the market so that we can plan our each activity according to that. Also it is necessary to retain the existing customers apart from attracting the new customers. The project was aimed to find out various strategies that can be implemented to increase the sales volume of cheese and increase retail presence of products of Parag Milk foods in Bangalore region. These strategies were suggested after a research on the milk industry in Bangalore. There was questionnaire prepared for the consumers to understand their usage pattern. We encountered a little problem in collecting data as the buyers were reluctant in providing any kind of information. Market Growth Dynamics of Cheese Parag Milk Foods Ltd CONTENTS Chapter No Particulars Page No Chapter 1 Introduction 01 Chapter 2 Industry Profile 02 Chapter 3 Introduction and history of the company 09 Chapter 4 Research Design 28 Chapter 5 Data analysis and Interpretation 32 Chapter 6 Findings of the Research 40 Chapter 7 Suggestions and recommendations 41 Chapter 8 Conclusion 42 Chapter 9 Learning and Experience 43 Chapter 10 Work Diary 44 Chapter 11 Bibliography 46 Market Growth Dynamics of Cheese Parag Milk Foods Ltd Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 1 CHAPTER 1 INTRODUCTION Introduction to study: A few decades until now, India was more of a ‘butter’ country. Butter finds place in the breakfast of most urban homes. We could rarely find a cheese block somewhere in the house. Except for the Indian variety of cottage cheese - Paneer, India is not traditionally a ‘cheese nation’. Cheese was more or less used for sandwiches, or to make dishes that would go along as evening dishes or accompaniments to cocktails. Now, the mainstream use of cheese and cheese spreads has increased in the urban mainstream. Cheese is used as cheese blocks, grated cheese and cheese spreads. With the growing saturation of cheese consumption in the West and the encouraging successes in other ‘non-cheese’ Asian countries like Japan and China; overseas cheese producers are eyeing the Indian market for its huge promise. While a few years ago Indians had access to only one type of basic cheese, several companies have entered the foray and there are multiple cheese types that are available at the stores. Title of the study: The study is made on the changing “Market growth dynamics of cheese market in India”. Need and relevance of the study: With changing consumer trends-namely growing incomes, westernization, and urbanization the demand for cheese is likely to increase and is supposed to grow at the rate of 20%-25% in urban metros. So it necessary to understand whether companies are identifying these growing trends and are able to serve the consumers better. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 2 CHAPTER 2 INDUSTRY PROFILE Indian Diary Industry: India is the world’s largest producer of dairy products by volume, contributing more than 13% of world’s total milk production, and it also has the world’s largest dairy herd. As the country consumes almost all of its own milk production, India was neither an active importer nor an exporter of dairy products prior to year 2000. However, since the implementation of Operation Flood Programme, the situation changed significantly and imports of dairy products reduced to very small quantities. From 2001, India has become a net exporter of dairy products and after 2003 India’s dairy import has dipped while exports have increased at a fast rate. Yet the country’s share in global dairy trade still remains at minor levels of 0.3 and 0.4 percent for exports and imports respectively. This is due to the direct consumption of liquid milk by the producer households as well as the demand for processed dairy products that has increased with the growth of income levels, which have left little dairy surpluses for export. Nevertheless, India consistently exports specialty products such as casein for food processing or pharmaceuticals. The Indian dairy sector is different from other dairy producing countries as India places its emphasis on both cattle and buffalo milk. In 2010, the government and the National Dairy Development Board have made a National Dairy Plan (NDP) that proposes to nearly double India’s milk production by 2020. This plan will strive to increase the country’s milk productivity, improve access to quality feeds and improve farmer access to the organised market. These goals will be achieved through activities that focus on increasing cooperative membership and growing the network of milk collection facilities throughout India. Despite its huge production volume, India nevertheless faces a milk supply gap due to increasing demand from a growing middle class population. Estimation suggests that Indian dairy production is growing at a rate of about four percent per year, yet consumer demand is growing at approximately double that rate. Apart from the rapidly increasing demand for milk and dairy products, other reasons such as the increased cattle feed cost and low availability of dairy farm labour in the rural areas have also resulted in increase in the cost of production. On the other hand, the strong pressure from EU to open up its market as well as the proposed free trade agreement with Australia and New Zealand may also put India’s dairy sector in the risk of being jeopardised. In order to maintain the development of its dairy industry, focus needs to be placed on several areas. First, cost of production Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 3 has to be reduced through increasing productivity of animals, improve animal health care and breeding facilities and management of dairy animals. Second, Indian dairy industry needs to further develop proper dairy production, processing and marketing infrastructure, which is capable of meeting international quality requirements. Third, India can focus on buffalo milk based speciality products, such as Mozzarella cheese, in order to meet the needs of the target consumers. Beyond Milk: Value Added Dairy Products to boost up profits The time has arrived for dairy players to skim the cream out of the milk business. Rising consumption coupled with better margins in the value added dairy products (VADPs) are driving the dairy players to get into the growth and higher profitable trajectory. Change in demographics and rapid urbanization have resulted into manifold surge in the demand for VADPs. Milk products such as curd which were largely home products are currently available under various brands. Due to convenience, health benefits and increased consumerism, milk derivatives like buttermilk, low fat yogurt and flavored milk are nowadays part of regular consumption. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 4 The traditional way…. For decades, dairy players in India have been engaged in the liquid milk processing activity only. Backed by operation White Flood in 1970s, the milk industry in India witnessed the first wave of development in the milk production which gave India its status of the largest milk producer in the world. This was spearheaded by the ‘Co-operatives model’ which was supported by the GoI. Ownership being with the farmers instilled trust among the member milk producers in the cooperative model, which also ensured transparent returns. In addition, cooperatives also provided various services like cattle vaccination, cattle insurance, artificial insemination, installation of coolers at village level etc to improve productivity. Further, there was minimal involvement of private players in the industry as approximately 80% of the retail price of the liquid milk went back to the farmers leading to low operating margins (4- 5%). This was despite the consistent upsurge in the retail prices of the liquid milk. Consequently, the dairy companies were left with insufficient internal funds to plough back into the operations for adoption of modern technologies or development of milk variants. The above reasons coupled with factors such as evolving tastes and preferences, higher affordability, etc, lead to the entities venturing into the VADP segment for better profitability. Going the creamy way…. Over the past decade, significant transformation took place in the Indian demographic space which led to heightened consumer interest in VADPs. This shift in the dynamics of the industry proved beneficial for the manufacturers since margins in VADPs are more than double the margins in the liquid milk segment. The profitability in liquid milk space ranges from 4-5%, whereas the profitability in VADPs ranges from 12-18%, attracting private participation in the industry. As per the industry estimates, the share of VADP in the milk and milk derivatives segment is growing currently at around 25% every year and is expected to grow at the same rate until 2019- 20. Product innovations are likely to accelerate India’s dairy market which is anticipated to improve industry margins by attaining greater scale, higher capacity use and an increasing contribution from Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 5 new milk variants. Further, the development of processing and packaging technology along with improvement in retail and cold storage infrastructure has increased the shelf life of dairy products. ….the growth trajectory As per NDDB, the Indian dairy industry is all set to experience high growth rates in the next eight years with demand likely to reach 200 million tonnes by 2022 from 132 million tonnes in 2013. Presently, only 20% of the milk production comes from the organized sector comprising cooperatives and private dairies. The paramount factors driving the growth in the dairy sector include rising disposable incomes, advent of nuclear families and fast/instant food gaining ground in India. Other factors such as structural changes in food habits, expansion of fast food chains and popularity of pizzas and pastas aided the usage of milk variants of mozzarella cheese, processed cheese and flavored milk etc. Increasing participation from the private sector…. Consumer preference towards VADPs is taking forward the dairy sector. Besides brown-field/ greenfield expansion, global dairy companies too are venturing into milk derivatives business in this part of the world. The most recent one is the 100% acquisition of Tirumala Milk Products Pvt Ltd by GroupeLactalis SA, France, one of the largest dairy players in the world. Another French dairy major Danone has also increased its presence in the Indian dairy sector with slew of product launches such as flavoured curd, yoghurt etc. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 6 Other investments include Nestle India’s acquisition of 26% stake in Indocon Agro and Allied Activities Pvt Ltd and Hatsun Agro Products Ltd acquiring 100% stake in Jyothi Dairy Pvt Ltd. Companies such as Parag Milk Foods Pvt Ltd, Prabhat Dairy Pvt Ltd have augmented their capacities in the recent past to meet the increased demand of milk products. ….drawing investors’ attention India consumption story and diversification by dairy players into VADPs are drawing interests of investors which have led to surge in the PE deals. The prominent deals include investment by IDFC and MotilalOswal in Parag Milk Food Pvt Ltd, Rabo bank group and India Agribusiness Fund in Prabhat Dairy Pvt Ltd, IFC into Modern Dairies Ltd and Blackriver Investment in Dolda Dairy Ltd. In one of the most recent investments, Fidelity Growth Partners, India, along with participation of the existing social venture investor, Aavishkaar, have invested in Odisha-based Milk Mantra Dairy Pvt Ltd. Recent deals in the sector are the indication that the investors perceive value in the deals and see growth prospects in the Indian dairy space. Right product mix likely to have a positive impact on the credit profile of dairy companies traditionally, the credit risk profile of dairy companies was characterized by low profitability and moderate liquidity. The dairy companies rated by CARE are largely in the BBB or BB category (refer the graph below) primarily on account of moderate solvency profile. However, Mother Dairy Fruit And Vegetable Private Ltd, Co-operatives associated with Gujarat Cooperative Milk Marketing Federation and some private dairies are in the ‘AA’ and ‘A’ rating category on account of their superior procurement and marketing channels and high share of VADPs in product portfolio. During FY14, the credit profile of CARE rated dairy companies have broadly remained stable. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 7 The entities with the right product mix of liquid milk and VADPs are expected to have better profitability and solvency parameters. Consequently, there is a high possibility of improvement in the credit profiles of such companies given the robust milk procurement and distribution system. Cheese: the next big market in India Among the processed dairy products, the most promising segment both in terms of consumer demand and business profitability is the cheese segment. Traditionally, India is not a cheeseconsuming nation as the Indian consumer’s palate has been adapted to the softer Indian variant of cheese called paneer. But, in recent years, given the magnitude of the demand from Indian consumers, global industry experts predict that India is the next big market in terms of cheese consumption. This forecast also accounts for the fact that, although Europe and North America are the primary cheese markets today, a saturation therein is forcing suppliers to look elsewhere, to such currently major importers as Japan and Russia, and to developing markets like India. The Indian cheese market is presently worth around USD 237 mn, but is expected to grow at roughly 15-20 percent annually. Product-wise, the global market deals in almost 3,000 varieties of cheese, whereas in India only about 40-45 variants are being marketed, presenting much room for the market’s expansion. By industry estimates, the current household penetration in terms of cheese consumption is less than 7-8 percent. The per capita consumption of cheese in India is a mere 200 gm per year in contrast to the global average of 7 kg per annum; the average for urban India, however, is 700 gm per person. Geographically, the top six cities consume approximately 60 percent of all the cheese sold in India. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 8 In India, the processed cheese market forms almost 45 percent of the total market that is likely to grow a higher-than-average CAGR of around 25 percent, which includes all spreads, cubes, slices, tins, slabs, etc. Within the processed cheese segment, around 60 percent of the market is dominated by un-spreadable processed cheese. The segment is well organised, comprises regional, Indian, and international players, and is registering high levels of entrepreneurial activity. On the other hand, the unprocessed cheese market is largely associated with the soft cheese category in India, usually associated with paneer. The traditional soft cheese constitutes over 55 percent of the total market, with only a small fraction thereof being contributed by the organised sector and is expected to continually form the major chunk, given the Indian consumer’s behaviour, for years to come. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 9 CHAPTER 3 INTRODUCTION AND HISTORY OF COMPANY INTRODUCTION Gowardhan, founded by Parag Milk and Milk Products Pvt. Ltd in 1992, is one of India's largest private dairies, with an output capacity of 1,000,000 liters per day. Located in a lush green village called Manchar in Maharashtra (60 km from Pune), and also owns the largest cow farm in India as well as Asia's largest cheese plant. We are an ISO 9000 and AGMARK certified company, committed to international standards of product quality. Our product portfolio includes Skim Milk Powder, Whole Milk Powder, Ghee, Processed Cheese, Butter, Dahi, proprietary foods like Dairy Whitener and Jamun Mix, Govardhan Mix powder under the brand names of "Gowardhan" and 'Go' and all made from 100% fresh cow milk. A dairy plant consist of all manufacturing section used for milk treatment and processing begins with milk reception and ending with dispatch of the finished products. They operate within the framework of the milk regulation and consist of a production program and regulation, flow sheet, energy flow sheet and functional descriptive. The Genesis: He had a "Vision" to set up institution to help the famous of near village to grow economically. He believed in this vision of faluire as he conceptualized marketing of successful milk which was unused by the farming community to the village with his scientific way and the political to increase milk production, he led to the step to his dream "PARAG MILK”. Thus the pure intension of the entrepreneurship of Shri.Devendra Shah, PARAG MILK & MILK Products Pvt. Ltd. is one of the most popular dairy in the state of Maharashtra. It is located on NH 50, Pune-Nashik highway, 65 km from industrial city Pune, near Awasariphata at western of Mancher. The factory spread over an area of 8 acres. The company hosts plant and machinery supplied and erected by the world leaders "Alfa-Laval" .Initially the plant was started with a handling capacity of 30.000 Liters/day. At present the dairy handle milk upto 8 Lakhs Liter/day in lean season. It has an annual growth of 50%. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 10 Parag milk is a multi-products dairy plant manufacturing different milk products like Ghee, Butter, Dahi, Chass, Liquid-milk, Skim Milk Powder, Whole Milk Powder, Dairy Whitener, Real Milk Powder, Cheese ,GulamJGovardhann ,UHT Milk, Cheese(Cheddar cheese, Process cheese, Mozzarella cheese).It is an ISO-9001 HACCP certified company. The brand name of is "GOWRDHAN" Company also has the certificate of MMPORC No.310/r-MPO/2003. Vision: Infrastructure & Technology Our commitment to quality and innovation has resulted in huge investments in infrastructure and technology. Our integrated dairy and cow farm at Manchar, is rapidly scaling up to cater to the ever expanding circle of customers in India, who seek all-natural, wholesome and delicious dairy products. Dairy Plant, Manchar, Pune The extensive ranges of their products are processed at this ultra modern dairy. The dairy plant is fully automated, of international standards and equipped with the best European technology. Right from reception of milk to the finished product, we maintain strict no-human-contact through the entire manufacturing process. The plant churns out 1,000,000 litres of milk per day, has an output capacity upto 10 MT of butter, 25 MT of ghee and 10 MT of dahi (yoghurt) and 65 MT of milk powder. The cheese plant with a production capacity of 40 MT, it's one of the only two facilities in Asia with UHT technology. The equipment, imported from Stephan Machinery Germany, pioneers in cheese processing equipment, allows the UHT treated cheese to be stored in ambient condition without refrigeration up to a period of 6 months in tropical countries like India. The company is readying itself to flood the national markets with its UHT treated, superior quality cheese which will Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 11 be available in a variety of forms such as slices, wedges spreads and a range of exciting flavours under a new brand name, Go. DAIRY FARM Gowardhan manufactures dairy products that are not just 100% natural, but also lighter and rich in calcium. That's because the milk, procured from its own cow farm - the largest in Asia - is 100% natural cow's milk. What's more is the use of latest European technology in our manufacturing units ensures the superior quality and freshness of their products, giving them the unique Gowardhan taste and flavors. The plant have the dairy farm also it have nearly about 2500 cows. Each cow gives milks about 20 to 25 Liter/day. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 12 SWOT ANALYSIS STRENGTHS: It has a strong brand image in West and North India. Strong network of milk suppliers. Strong supply-chain. Loyal customers. The organization enjoys the goodwill of customers and distributors It maintains quality .It is certified by ISO 9000 and 15000 HACCP. Go practices almost zero level inventory and just in time production The organization has an exclusive department for information sharing and co-ordination of activities among various departments through local area network. It provides the means of livelihood to several dairy farmers through self-employment. Has one of Asia’s largest cheese plant . Pioneer of diary tourism in India. WEAKNESS: Lack of effective media advertising. No proper distribution in south India No legal advisory department. Price is high for some of the qualitative products. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 13 OPPORTUNITIES: Expansion in to the other states to top market Can maintain and improve the quality to build customer’s confidence. Can tap un-covered market by effective advertising in the electronic media Organization has the potential to diversify into various related business like baked food items. It can install enterprise resource planning to integrate all its stake holders so that it can operate effectively and economically with higher efficiency. Export of milk powder, cheese can be done. THREATS: Facing a severe competition from the other major brands & new entrants Competitors are major threats to organization. It fails with competitors in advertisement and promotion because the policy relating to advertisement and promotion lies with the KMF. Change in labour laws. Increasing of product price recently probable to loose its own market share in the market. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 14 PRODUCT PROFILE We are offering our clients a wide range of milk products. All our products are processed under hygienic conditions, so that it is safe for our clients to consume. As the whole process is mechanized, it keep the products safe from the germs and contaminations spreading by hands. As a result of the unmatched quality of our products, these are demanded in various world famous companies in various regions of the world. The range includes the following products: Gowardhan Milk Gowardhan Gold Pasteurized and Homogenized from 100% pure cow’s milk, Gowardhan Gold packs a major nutritional punch for mega – active people! Its Rich calcium content promises stronger bones. It Has a Rich Creamy Taste and texture that both children and adults will love. Gold milk is available in 500 ml and 1 liter packets. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 15 Gowardhan Fresh Homogenized and Pasteurized toned milk, Made from 1005 pure cow’s milk, High calcium content, store under refrigeration at 4’C , Available in 250ml, 500ml and 1liter. Gowrdhan Premium Ghee 100% pure clarified milk fat, sweet aroma of pure ghee, no added color, store at ambient temperature, Available in poly pack 200ml,500ml,and 1liter,Ghee Jar 200ml,500ml, 1ltr and 5ltr, BB 100 and 200ml, RT500ml and 1ltr, Tin 5ltr and 15kg. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 16 Gowardhan Butter Pasteurized Table butter & unsalted butter, Made from modern continuous butter making machines, 100% natural, no added colors, Low salt content, Mild taste and firm consistency, store under refrigeration at4’c , Available in table butter 100g,500g,and 20kg, unsalted butter 500g and 20kg. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 17 Gowardhan Processed Cheese Blends of Cheddar cheese of different age, Firm consistency and smooth texture, High melting point, Store under refrigeration at 4’C , Available in 200g, 400g, and 1kg. Blends of Cheddar cheese of different age, firm consistency and smooth texture, High melting point, Store under refrigeration at 4’c , Available in 200g, 400g, and 1kg. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 18 Go Mozzarella Cheese Made from pasteurized cow milk, using Italian technology, Excellent stretch ability, High melting point, Store at-18’C , available in 200g, 1kg, 2.5kg, Diced available 2kg. Mozzarella Cheese Shredded: Available in 500g, 1kg, and 2kg, also available in Mozzarella Blend with Cheddar in 2kg. Gowardhan Dairy Whitener Contains 18% fat, Rich & smooth taste, Sweetened powder, Made from partially skimmed spray dried milk, store at ambient temperature, available in pouches 16g, 32g, 500g, 1kg, 10kg, jar and 25kg bag. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 19 GowardhanGulabJamun Mix Gowardhan Trim Dahi Gowardhan Fresh 'n' Thick Dahi Made from Pasteurized toned milk and active culture , Contains, 3% fat, Thick and natural taste, 0% cholesterol ,Store under refrigeration at 4’C , Available in 80g, 200g, 400g,1kg, and 2kg. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 20 Gowardhan Chass Cheddar Cheese Traditionally aged over 3months, Rich and natural taste, Store under refrigeration at 4’C, Available in block 1kg, 2.5kg, 20kg, and Diced kg. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 21 Go Topp up Milk based instant Energy Drink (charge up!) , 10% extra proteins , Made from 100% cow’s milk, unique taste, Distinct Indian flavors: Rose , Mango, Elaichi, Strawberry, Butterscotch &Pista , convenient Ring crown pull cap, long shelf life of 6 months at room temperature available in 200/ 180ml glass bottles. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 22 CreamyCheese Spread Go Cheezooz Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 23 Pizza Cheese Blend of Mozzarella and Cheddar cheese, Firm and smooth texture, High melting point, excellent strechability, Store under refrigeration at 4’C, Available in 200g and 1kg. Cheese Shredded Available in 500g, 1kg, and 2kg, Also available in Mozzarella Blend with Cheddar in 2kg. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 24 GO Slice Cheese Made from processed Cheddar cheese, World’s best German UHT technology ensures longer shelf life, Rich and natural taste, High calcium content, Store under refrigeration at 4’C , Available in 40g, 100g, 200g, 47g, and 750g. GO FRESH CREAM Low fat cream, 25%, Made from 100% pure cow’s milk, unique taste, All-purpose cream, ideal for tea, coffee, cakes, truffles, pastries, fruit, salads and favorite. Indian curries, Clean flavor and free flowing, long shelf life of 6 months when stored at ambient temperature, Available in 200ml and 1ltr UHT bricks. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 25 GO Butter milk Traditional Indian drink with spices provides a lactic taste with thirst quenching qualities. Garnished with Ginger, Salt, and Jeera. Ideal replacement for carbonated beverages , ideal appetizer as well, as being pro-biotic, aids in digestion and prevents gastri ailments, shelf –life; 10days when stored below 4’C for pouches, 180 days when stored in ambient conditions for UHT bricks, Available in plain & spicy variants, pouch 200ml and 1ltr,UHT brick 200ml and 1ltr, UHT fino 200ml. GO PANEER Soft , fresh and easy to cut into pieces, High in calcium and protein , Low fat content , store under refrigeration at 4’C , shelf life 75 days, Available in block 100g, 200g, 500g and 1kg, Diced 200g and 1kg. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 26 GO YOGHURT Made from pasteurized toned milk and active culture , come in 8 flavor’s – strawberry, Mango, pineapple, Mixed Berry, Lychee, Guava ,Vanilla, and Kesar, Contains 2.7%fat, Contains 10%fruit, Rich and natural taste, to be store under refrigeration at 4’C. Available in 80g. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 27 Go Milk Double toned milk, 100% natural, 0% preservatives , Extra protein & calcium , Made from cow’s milk, shelf life 6 months, store at ambient temperature , Available in tetra packs 200ml and 1ltr, Fino packs 200ml and 500ml ( shelf life 3 months ), unique flip top cap. Some of the features of our products are as follows: Low fat content Longer preserving time Smooth texture Easily spreadable Fast melting capacity Free from contamination Fresh Nutritious Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 28 Chapter 4 RESEARCH DESIGN PROBLEM STATEMENT “Market growth dynamics of the Cheese Market” 1. OBJECTIVES OF THE STUDY The study was undertaken by keeping the following objective in the mind 1. To find the market penetration of cheese products and Parag Milk products among consumers. 2. To understand the preference pattern of the consumers ’. 3. To find the factors influencing the buying decision. 2. SCOPE OF PROJECT The study carried out in Malleshwaram and Jayanagar regions of Bangalore city so, its scope is mainly limited to that area only. It gives information about the Parag’s current market situation. It gives information about the cheese usage pattern among consumers. It gives information about the consumer mindset while making a purchase decision. It gives information about the consumer perception towards the brand and its competitors It will help the brand serve consumer in better manner Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 29 RESEARCH METHODOLOGY RESEARCH DESIGN FOLLOWED Descriptive Research is the research method used because descriptive studies embrace a large proportion of market research. The purpose is to provide an accurate snapshot of some aspect of the market environment. Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, who, what, where, when, why, and how aspects of the research should be defined. SAMPLING:- SAMPLING TECHNIQUE USED In this project the technique of sampling used was Judgment sampling. Judgment sampling involves the choice of subjects who are most advantageously placed or in the best position to provide the information required. SAMPLE UNIT In this project case sample were the consumers who made retail purchase at Malleshwaram and Jayanagar region of Bangalore city & the aim was to know the what diary products they’ve been using and the brands. SAMPLE SIZE: 60 Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 30 DATA COLLECTION TECHNIQUES SOURCES OF DATA PRIMARY DATA To collect primary data from the consumer Questionnaires were used. Questionnaire was prepared very carefully so that it may prove to be effective in collecting the right information. SECONDARY DATA Secondary data collected from different website. This secondary data formed the conceptual background for the project. This secondary data was compared with the primary data collected in area. RESEARCH INSTRUMENT The research instrument used in the project was Questionnaire to collect primary information, it provided flexibility by using more close ended and few open ended questions. METHOD OF DATA COLLECTION Information was collected by personally contacting consumers through interviews. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 31 LIMITATIONS OF THE RESEARCH The survey is limited only to the regions of Malleshwaram and Jayanagar areas of Bangalore city. Time period of the project was 5 weeks, which may not be enough to understand the whole market. Respondents hesitate to give true response to question. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 32 CHAPTER 5 DATA ANALYSIS AND INTERPRETATION 1. Cheese usage Particulars Respondents Yes 45 No 15 Total 60 Interpretation: 75% of the total respondents have used cheese at home Yes 75% No 25% Responses Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 33 2. Frequency of usage Respondents Regularly 15 Occasionally 30 Never 15 Total 60 Interpretation : Only 25% of the respondents used cheese regularly and 50% occasionally Regularly 25% Occas ionally 50% Never 25% 0% Responses Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 34 3. Different types of cheese known Cheese type Responses Processed 40 Mozzarella 25 Cheddar 17 Parmesan 04 Others 03 Interpretation : Processed cheese is the most widely known cheese type among consumer 0 5 10 15 20 25 30 35 40 45 Processed Mozzarella Cheddar Parmesan Other Responses Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 35 3.Most widely used cheese product among consumers Respondents Cheese slices 39 Cheese Spreads 09 Cheese Blocks 12 Total 60 Interpretation : Cheese slices is most used form of cheese product Cheese Slices 65% Cheese Spreads 15% Cheese Blocks 20% Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 36 4. Place of purchase Place Responses Kirana store 20 Departmental store ( Metro/Big Bazaar) 40 Total 60 Interpretation: 57% of the consumers prefer buying from departmental store such Metro cash and carry, Reliance fresh, More, Big bazaar and others. Ki rana store 33% departmental store 67% Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 37 5. Most preferred cheese brand Responses Amul 35 Go 10 Milky Mist 10 Britannia 05 Total 60 Interpretation: Amul is the most preferred cheese brand among consumers amul Go 58% 17% Milky mist 17% Britannia 8% Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 38 6. Cheese preference in family Particulars Responses Children 45 Adults 05 Everyone 10 Total 60 Interpretation: Cheese is mostly preferred by children in 75% of the family Children 75% Adults 8% Everyone 17% Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 39 Other Findings : 1) Most of the consumers did not have any knowledge regarding different varieties of cheese available 2) Many did not how and when to use cheese 3) Most use cheese in sandwiches and pizzas and think it cannot be used with Indian dishes Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 40 CHAPTER 6 FINDINGS OF THE RESEARCH From the survey conducted and interacting with various consumers I came to know that the cheese usage among the consumers is pretty low and people had little or no knowledge about different varieties of cheese and how to use them. Consumers mainly bought cheese slices and cheese blocks for sandwiches and pizzas and had no idea of how to use it or pair it with other dishes . The main consumers of cheese in the family are the children and most thought its not healthy. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 41 CHAPTER 8 SUGGESTIONS AND RECOMMENDATIONS As consumers are continuously gaining exposure to different varieties of cuisine and are ready to try and experiment with different varieties of dishes especially foreign cuisine and as the trend is going to continue, it is going to provide to huge opportunity for Parag Milk Foods to be a part of this trend especially in the cheese market since only 1% of the total dairy sales comes from cheese. These are some suggestions and recommendations, I think will help Parag Milk foods Govardhan/Go products are relatively less known brands in south India, so they should educate and generate awareness of their existence Company should spend more on digital marketing since there presence on social media sites and the engagement with consumers is pretty low Company should do more of content marketing, Increase their presence in modern retail formats Educate consumers about the varieties of cheeses and their usage The company should position its Cheese spreads and cheese sauces as an alternative to ketchups and jams Should do product placements on cookery shows Increase ATL advertising Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 42 CHAPTER 8 CONCLUSION The value sales of cheese is about to grow at CAGR of 13% at constant 2014 prices over the forecast period. The increased availability and knowledge of cheese varieties like mozzarella and cheddar, coupled with the growing awareness about the usage is likely to drive further growth. However, the popularity of unconventional cheese variants would remain largely restricted to urban areas like Bangalore, Mumbai and Delhi. With the going trends Parag Milk Foods have got their product mix right and should keep its focus on value added products and make the most of this growing trend among consumers looking for new experiences. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 43 CHAPTER 9 LEARNING AND EXPERIENCE The five weeks of internship period helped me gain a lot of insights into how a organisation is managed. Some of the major learning’s I got from the work I was assigned It made me understand the importance of supply chain and how crucial it is for Diary Industry . It gave me an understanding of how to approach a client and convince him to make a purchase, which also helped in improve my communication skills. It gave me better understanding of retailing concepts like Point of Purchase(POP) , Visual merchandising and shelf space allocation. Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 44 CHAPTER 10 WORK DONE DIARY Week Dates Work Carried out Initials of Co- Guide Signature of Faculty Guide I 13/07/2015 To 18/07/2015 Orientation Mr Ajith S II 20/07/2015 To 25/07/2015 Market survey and lead generation Mr Ajith S III 27/05/2015 To 01/08/2015 Lead conversion Mr Ajith S IV 03/08/2015 To 09/08/2015 Sample distribution to clients Mr Ajith S V 11/08/2015 To 15/08/2015 Survey data analysis and report preparation Mr Ajith S Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 45 Questionnaire 1.Name:_____________________ 2.Profession: _________________________ 3. Age: ______________________ 4. Contact details : _____________________ 5. Do you use cheese at home a. yes[] b.no [] 6. How frequently do you use cheese at home? a. Regularly [] b. Occasionally [] c. Never [] 7. Which type of cheese product do you buy? a. Cheese Slices [] b. Cheese spreads [] c. Cheese Blocks [] 8. Where do you purchase from cheese a. Kirana store [] b. Departmental store [] 9. Types of Cheese known a. Processed [] b. Mozzarella[] c. Cheddar [] d. Parmesan [] e. Others [] __________ 10. Most Preferred Cheese brand a. Amul [] b. Go [] c. Milky mist [] d. Britannia e. others__________ 11. Who prefers cheese in your family a. Children [] b. adults [] c. everyone [] Market Growth Dynamics of Cheese Parag Milk Foods Ltd AIMS Institutes of Higher Education Page 46 CHAPTER 11 BIBLIOGRAPHY Books Marketing Management by Philip Kotler Websites http://www.paragmilkfoods.com http://www.gowardhanindia.com http://www.gocheese.com http://indiamicrofinance.com/indian-dairy- industry-report-2014-pdf.html http://www.indiaretailing.com/FoodGrocer/7/42/46/10104 http://www.euromonitor.com/cheese- in-india/report