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“A STUDY OF “A STUDY OF CONSUMER PERCEPTION ABOUTCONSUMER PERCEPTION ABOUT PARAG PRODUCTS IN LMU, LUCKNOW’’PARAG PRODUCTS IN LMU, LUCKNOW’’
A PROJECT REPORT
BYASHUTOSH PARMAR [ROLL NO: 0901470002]
UNDER THE SUPERVISION OF
MRS.PRIYANKA SHARMA
Submitted to
Faculty of Management ScienceShri Ram Murti Smarak College of Engg. & Tech, Bareilly
As a part of
Departmental Research Work AssignmentOf
MBA Course (2009-2011).
1
CERTIFICATE
This is to certify that the students whose names are mentioned below have successfully
Completed the Research Work Assignment during their Second Semester of MBA
Course (2009-2011). During this assignment they have worked on a project titled “A
STUDY OF CONSUMER PERCEPTION ABOUT PARAG PRODUCTS IN LMU,
LUCKNOW”” assigned by the department under my supervision.
Name of the Student & Roll No.
Aditya Kumar0901470002
Date: (Mrs. Priyanka Sharma) Supervisor
(Anant Kumar Srivastava) (Prof. S. P. Gupta)HOD Director General
2
DECLARATION
I here by declare that the project, which is being presented in this report, entitled “A
STUDY OF CONSUMER PERCEPTION ABOUT PARAG PRODUCTS IN LMU,
LUCKNOW”” Is an authentic record of my own work during the period of one month
From 14-06-10 to 15-07-10 as a part of my MBA course of UPTU Lucknow.
The information which is given by me in this report is exclusively for the concerned
organization and the institute would not be submitted by me any where else.
ADITYA KUMAR
MBA (III Semester)
SRMSCET, Bareilly
3
ACKNOWLEDGEMENT
I am extremely thankful to our Venerable H.O.D Mr. Anant Kumar Srivastava whose
Encouragement, moral support provides the valuable guidance, which has been a source
of Inspiration to us.
I am also grateful to my project guide Mrs.Priyanka Sharma who helped me lot for
completing my summer training project report.
I would like to thank to all faculty members, my friends who helped me in my project of
our institute SRMSCET, BAREILLY.
I express my sincere gratitude to my industry guide Mr. Y.P. Sharma (Marketing
Incharge) & Mr. Gaurav Singh (Sales Supervisor) of Lucknow Producer’s Co-op
Milk Union Ltd. for his able guidance, continuous support and cooperation throughout
my project without which the present work would not have been possible.
I pay my sincere thanks to entire team of, Lucknow Producers' Co-op Milk Union Ltd, for
the constant support and helping in the successful completion of my project.
(ADITYA KUMAR)
MBA (MARKETING)
4
PREFACE
In today’s scenario, it is not possible that we get knowledge about the market without
practical training. By the practical training a management student can understand the
management working in the area of there specialization. Actually practical knowledge
increases the knowledge of students in real field of market & also integrates the theoretical
concepts with the practical working of the organization.
Accepting the above factors the management programs of our institute (SRMSCET
BAREILLY) has made practical training must for their management students. As a part of
the partial fulfillment of the requirement of the course of masters of business
administration (MBA), summer training was undertaken with LUCKNOW PRODUCERS
COOP MILK UNION LTD. at LUCKNOW city. The purpose of the training was to study
about the Consumer Perception about Parag Products at LUCKNOW city only.
The tools & techniques used in the study are standard & modified according to the report
requirements. I used the primary and secondary data for collection of information. I had
enjoyed my summer training from the very first day. I tried to come across all the initial
steps related with my project in LUCKNOW PRODUCERS COOP MILK UNION LTD.
5
TABLE OF CONTENTS
CHAPTER- I PAGE NO.1: INDUSTRIAL PROFILE
1.1: Dairy Industry ……………………………………………………….. 10
1.2: National Dairy Development Board (NDDB)……………………….. 15
1.3: Dairy Co operatives………………………………………………….. 20
1.4: Pradeshik Co-operative Dairy Federation (PCDF) Ltd. Profile……... 22
CHAPTER- II2: COMPANY PROFILE
2.1: About the company…………………………………………………… 302.2: Organizational Structure & Hierarchy……………………………….. 332.3: Products of the company……………………………………………... 392.3: SWOT Analysis………………………………………………………. 49
CHAPTER- III3: PROJECT3.1: Introduction of the project…………………………………………... 543.2: Research Objective ……………………............................................. 553.3: Research Methodology…………………………………………….... 65
CHAPTER- IV4: DATA ANALYSIS 4.1: Data Analysis & Interpretation……………………………………… 714.2: Finding………………………………………………………………. 814.3: Suggestions & Limitations………………………………………….. 834.4: Bibliography…………………............................................................ 874.5: Annexure……………………………………………………………. 88
6
LIST OF TABLES-
PAGE NO.
TABLE NO. 1 The preference of respondents towards
each Parag Products. 72
TABLE NO. 2 The response of respondents about
Parag product consumption. 73
TABLE NO. 3 The response of respondents towards
worthiness of parag products. 74
TABLE NO. 4 The response of respondents towards buying
preference due to Price, Brand name, Taste, Purity and Quality. 75
TABLE NO. 5 The response of respondents towards switching over to
other brands if available at the same quality. 76
TABLE NO. 6 The response of respondents towards facing problem in
availability of parag product. 77
TABLE NO. 7 The response of respondents towards price of PARAG
products. 78
TABLE NO. 8- The response of respondents towards quality of PARAG
Products. 79
7
LIST OF FIGURES-
PAGE NO.
FIGURE NO. 1 The preference of respondents towards
each Parag Products. 72
FIGURE NO. 2 The response of respondents about
Parag product consumption. 73
FIGURE NO. 3 The response of respondents towards
worthiness of parag products. 74
FIGURE NO. 4 The response of respondents towards buying
preference due to Price, Brand name, Taste, Purity and Quality. 75
FIGURE NO. 5 The response of respondents towards switching over to
other brands if available at the same quality. 76
FIGURE NO. 6 The response of respondents towards facing problem in
availability of parag product. 77
FIGURE NO. 7 The response of respondents towards price of PARAG
products. 78
FIGURE NO. 8- The response of respondents towards quality of PARAG
Products. 79
8
CHAPTER-1
9
INDUSTRIAL
PROFILE
10
1.1: DAIRY INDUSTRY
PROFILE
Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to
entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest
growing markets for milk and milk products. A bagful of 'pearls' awaits the international
dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace
with the galloping progress around the world. As he expands his overseas operations to
India many profitable options await him. He may transfer technology, sign joint ventures
or use India as a sourcing center for regional exports. The liberalization of the Indian
economy beckons to MNC's and foreign investors alike.
India’s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO regulations
expected to come into force in coming years all the developed countries which are among
big exporters today would have to withdraw the support and subsidy to their domestic
milk products sector. Also India today is the lowest cost producer of per liter of milk in
the world, at 28 cents, compared with the U.S' 62 cents, and Japan’s $2.8 dollars. Also to
take advantage of this lowest cost of milk production and increasing production in the
country multinational companies are planning to expand their activities here. Some of
these milk producers have already obtained quality standard certificates from the
authorities. This will help them in marketing their products in foreign countries in
processed form.
11
The urban market for milk products is expected to grow at an accelerated pace of around
36% per annum to around Rs.48, 500 crores by year 2009. This growth is going to come
from the greater emphasis on the processed foods sector and also by increase in the
conversion of milk into milk products. By 2009, the value of Indian dairy produce is
expected to be Rs 12, 00,000 million. Presently the market is valued at around Rs 9,
00,000mn.
BACKGROUND
Indian dairy sector contributes the large share in agricultural gross domestic products.
Presently there are around 75,000 village dairy cooperatives across the country. The co-
operative societies are federated into 180 district milk producers unions, which is turn has
22-state cooperative dairy federation. Milk production gives employment to more than
82mn dairy farmers. In terms of total production, India is the leading producer of milk in
the world followed by USA. The milk production in 2008-2009 is estimated at 104mn
MT as compared to 99.5mn MT in the previous year. While world milk production
declined by 3 per cent in the last three years, according to FAO estimates, Indian
production has increased by 5 per cent. The milk production in India accounts for more
than 19% of the total world output and 59% of total Asia's production. The top five milk-
producing nations in the world are India, USA, Russia, Germany and France.
12
Although milk production has grown at a fast pace during the last three decades
(courtesy: Operation Flood), milk yield per animal is very low. The main reasons for the
low yield are
Lack of use of scientific practices in mulching.
Inadequate availability of fodder in all seasons.
Unavailability of veterinary health services.
POTENTIAL FOR FURTHER GROWTH
Of the three A's of marketing - availability, acceptability and affordability, Indian
dairy is already endowed with the first two. People in India love to drink milk. Hence no
efforts are needed to make it acceptable. Its availability is not a limitation either, because
of the ample scope for increasing milk production, given the prevailing low yields from
dairy cattle. It leaves the third vital marketing factor affordability. How to make milk
affordable for the large majority with limited purchasing power? That is essence of the
challenge. One practical way is to pack milk in small quantities of 250 ml or less in
polythene sachets. Already, the glass bottle for retailing milk has given way to single-use
sachets, which are more economical. Another viable alternative is to sell small quantities
of milk powder in mini-sachets, adequate for two cups of tea or coffee.
13
Emerging Dairy Markets
Food service institutional market: It is growing at double the rate of consumer
market.
Defense market: An important growing market for quality products at reasonable
prices.
Ingredients market: A boom is forecast in the market of dairy products used as
raw material in pharmaceutical and allied industries.
Major Players
The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative
Milk Marketing Federation (GCMMF) is the largest player. All other local dairy
cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in
Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other
private players include J K Dairy, Heritage Foods, Indiana Dairy, etc. Amrut Industries,
once a leading player in the sector has turned bankrupt and is facing liquidation.
Export Potential
India has the potential to become one of the leading players in milk and milk product
exports. Lavational advantage: India is located amidst major milk deficit countries in
Asia and Africa. Major Importers of milk and milk products are Bangladesh, China,
Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other
gulf countries, all located close to India.
14
Low Cost of Production: Milk production is scale insensitive and labor intensive. Due
to low labor cost, cost of production of milk is significantly lower in India.
Quality: Significant investment has to be made in milk procurement, equipments,
chilling and refrigeration facilities. Also, training has to be imparted to improve the
quality to bring it up to international standards.
Productivity: To have an exportable surplus in the long-term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast
market for the export of traditional milk products such as ghee, paneer, shrikhand,
rasgolas and other ethnic sweets to the large number of Indians scattered all over the
world.
Future Prospects-India is the world's highest milk producer and all set to become the
world's largest food factory. In celebration, Indian Dairy sector is now ready to invite
NRIs and Foreign investors to find this country a place for the mammoth investment
projects. Be it investors, researchers, entrepreneurs, or the merely curious – Indian Dairy
sector has something for everyone.
Milk production is relatively efficient way of converting vegetable material into animal
food. Dairy cow’s buffalo’s goats and sheep can eat fodder and crop by products, which
are not eaten by humans. Yet the loss of nutrients energy and equipment required in milk
handling inevitably make milk comparatively expensive food. Also if dairying is to play
its part in rural development policies, the price to milk producers has to be remunerative.
15
In a situation of increased international prices, low availabilities of food aid and foreign
exchange constraints, large-scale subsidization of milk conception will be difficult in the
majority of developing countries.
1.2: ABOUT NDDB-
The National Dairy Development Board was created to promote, finance and support
producer-owned and controlled organizations. NDDB's programmers and activities seek
to strengthen farmer cooperatives and support national policies that are favorable to the
16
growth of such institutions. Fundamental to NDDB's efforts are cooperative principles
and cooperative strategies.
An institution of national importance
Due to very wide dispersal of producing and consuming units of milk, the unorganized
sector continues to dominate the milk marketing in India. However, the market structure
for milk is constantly changing. The organized sector now handles above 20% of the milk
output in the country. The cooperative sector accounts for nearly 50% of this. There are
over 1.10 lakh milk producers cooperatives federated into district milk unions and state
dairy federations, which have organic links with the Mother Dairy at the nation level.
It is hearting to note that the milk producers in the Anand modal of milk production get
net of intermediation, about 60% of the final price. In other basic foods, the returns are as
low as 30% of the final price. NDDB supports the development of dairy Cooperatives by
providing them financial assistance and technical expertise. Over the years, brands in
milk products created by cooperatives have become synonymous with quality and value.
Brands like Amul (GCMMF), Vijaya (A.P.), Verka (Punjab), Saras (Rajasthan), Nandini
(Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned
customer confidence. The Dairy Cooperative Network I) include 170 milk unions ii)
operates in over 338 districts iii) covers nearly 1, 08574 village level societies IV) is
owned by nearly 12 million farmer members.
17
Milk production
India’s milk production increased from 88.1 million MT in 2003-04 to 105 million
MT in 2008-09.
India’s 3.8 percent annual growth of milk production surpasses the 2 percent
growth in population; the net increase in availability is around 2 percent per year.
Marketing
In 2008-09, average daily cooperative milk marketing stood at 183.75lakh liters;
annual growth has averaged about 4.8 percent compounded over the last five
years.
Dairy cooperatives now market milk in about 200 cities including metros and
some 550 smaller towns.
During the last decade, the daily milk supply per 1,400 urban consumers has
increased from 21.5 to 68.0 liters
Innovation
Bulk vending – saving money.
Milk travels as far as 2,200 kilometers to deficit areas, carried by innovative rail
and road milk tankers.18
Ninety – five percent of dairy equipment is produced in India, saving valuable
foreign exchange.
CONSTITUTION
The National Dairy Development Board has been constituted as a body corporate and
declared an institution of national importance by an Act of India's Parliament.
The National Dairy Development Board -- initially registered as a society under the
Societies Act 1860 -- was merged with the erstwhile Indian Dairy Corporation, a
company formed and registered under the Companies Act 1956, by an Act of India's
Parliament - the NDDB Act 1987 (37 of 1987), with effect from 12 October, 1987. The
new body corporate was declared an institution of national importance by the Act.
AIMS AND OBJECTIVES OF NDDB
Dairy Development Programmed in State at raising the levels of income of their doors, as
well as providing good quality milk and milk products to consumers, Particularly of the
urban areas at a reasonable price. Dairying also Provide an effective supplement to
agriculture, especially for the weaker sections of the society in the rural areas. Adequate
provision has been made for technical and attendant services such as artificial
insemination, animal health, fodder seeds and nutritive cattle food.
19
OBJECTIVES
Evaluation of standard of quality of milk and milk product to be marketed by
Federation.
To provide encouragement incentive on production, Procurement, Processing and
marketing activities of milk product for the economic development of farmer
community.
To encourage market and R & D programmes.
To help member milk unions in technology administrative, financial assistance
To encourage activities related to development and extension of dairy industry to
the economic development of milk producers and dairy industry.
To establish collection and refrigeration centers, liquid milk units and processing
facilities for distribution and sale of items purchased from various sources.
20
1.3: DAIRY CO-OPERATIVES
Dairy Cooperatives account for the major share of processed liquid milk marketed in the
country. Milk is processed and marketed by 170 Milk Producers' Cooperative Unions,
which federate into 15 State Cooperative Milk Marketing Federations.
The Dairy Board's programmes and activities seek to strengthen the functioning of Dairy
Cooperatives, as producer-owned and controlled organizations. NDDB supports the
Development of dairy cooperatives by providing them financial assistance and technical
Expertise, ensuring a better future for India's farmers.
Over the years, brands created by cooperatives have become synonymous with
quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras
(Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among
those that have earned customer confidence.
Some of the major Dairy Cooperative Federations include:
Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF)
Bihar State Cooperative Milk Producers' Federation Ltd (COMPFED)
Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)
Haryana Dairy Development Cooperative Federation Ltd. (HDDCF)
21
Himachal Pradesh State Cooperative Milk Producers' Federation Ltd (HPSCMPF)
Karnataka Cooperative Milk Producers' Federation Ltd (KMF)
Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF)
Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF)
Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh)
Orissa State Cooperative Milk Producers' Federation Ltd (OMFED)
Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF)
Punjab State Cooperative Milk Producers' Federation Ltd (MILKFED)
Rajasthan Cooperative Dairy Federation Ltd (RCDF)
Tamilnadu Cooperative Milk Producers' Federation Ltd (TCMPF)
22
1.4: PRADESHIK CO-OPERATIVE DAIRY FEDERATION LIMITED
PROFILE
History of co-operative dairy industry in U.P. dates back to 1971 when “katra co-
operative milk society” was set up in Allahabad; Lucknow milk union was established in
1985. In 1962, the PRADESHIK CO-OPERARTIVE DAIRY FEDERATION was
established, keeping in mind the aim to consumers and also to help the backward classes
and villagers economically.
Pradeshik co-operative dairy federation is a pioneer milk production. With the main
objective of removing the middleman from transaction between producers and
consumers, it’s other objective care to nearest milk production and by products of the
milk. Keeping these objectives and aim in mind pradeshik co-operative dairy federation
was set up as the state level as apex body for launching operation flood. The government
body for all dairies of the state.
23
ABOUT PRADESHIK CO-OPERATIVE DAIRY FEDERATION LIMITED
Company Name : Pradeshik Cooperative Dairy Federation Ltd (Parag)
Address : 29 Park Road
Level of Office : Head Office
Phone No : (522) 2236465 2236035
Industry : Food Processing/ Beverages
City : Lucknow
State : Uttar PradeshPin : 226001
Company Type : Industry Best
Total Turnover : 1000-2500 Crs
No. of Employees : 2501 -5000
Sector : Public Sector
24
Milk Co-Operatives in Uttar Pradesh
Agra Dugdh Utpadak Sahakari Sangh Ltd, Agra.
Aligarh Dugdh Utpadak Sahakari Sangh Ltd, Aligarh. A Milk Proc: 32,054 lpd.
Allahabad Dugdh Utpadak Sahakari Sangh Ltd, Allahabad. Av Milk Proc: 30,000 lpd.
Azamgarh Dugdh Utpadak Sahakari Sangh Ltd, Azamgarh.
Badaun Dugdh Utpadak Sahakari Sangh Ltd, Badaun. Av Milk Proc: 31,150 lpd.
Ballia Dugdh Utpadak Sahakari Sangh Ltd, Ballia. Av Milk Proc: 4,790 lpd.
Banda Dugdh Utpadak Sahakari Sangh, Banda.
Barabanki Dugdh Utpadak Sahakari Sangh Ltd, Barabanki. Av Milk Proc: 28,271 lpd.
Bareilly Dugdh Utpadak Sahakari Sangh Ltd, Bareilly.
Bijnore Dugdh Utpadak Sahakari Sangh Ltd, Bijnore. Av Milk Proc: 9,935 lpd.
Bulandshahr Dugdh Utpadak Sahakari Sangh Ltd,
Bulandshahr.Av Milk Proc: 70,668 lpd.
Etah Dugdh Utpadak Sahakari Sangh Ltd, Etah. Soc: 124,
Mems: 7,870.Av Milk Proc: 7,100 lpd.
Etawah Dugdh Utpadak Sahakari Sangh Ltd, Etawah. Av Milk Proc: 6,440 lpd.
Farrukhabad Dugdh Utpadak Sahakari Sangh Ltd, Fatehgarh. Av Milk Proc: 7,290 lpd.
Fatehpur Dugdh Utpadak Sahakari Sangh Ltd, Fatehpur. Av Milk Proc: 24,000 lpd.
25
Ferozabad Dugdh Utpadak Sahakari Sangh Ltd, Shikohabad.
Gangol Sahkari Dugdh Utpadak Sangh Ltd, Meerut. Av Milk Proc: 48,066 lpd.
Ghaziabad Dugdh Utpadak Sahakari Sangh Ltd, Hapur.
Ghazipur Dugdh Utpadak Sahakari Sangh Ltd, Ghazipur.
Gonda Dugdh Utpadak Sahakari Sangh Ltd, Gonda. Av Milk Proc: 4,100 lpd.
Gorakhpur Dugdh Utpadak Sahakari Sangh Ltd, Gorakhpur. Av Milk Proc: 4,331 lpd.
Hamirpur Dugdh Utpadak Sahakari Sangh, Hamirpur.
Hardoi Dugdh Utpadak Sahakari Sangh Ltd, Hardoi. Av Milk Proc: 17,000 lpd.
Jalaun Dugdh Utpadak Sahakari Sangh Ltd, Orai. Av Milk Proc: 11,381 lpd.
Jaunpur Dugdh Utpadak Sahakari Sangh Ltd, Jaunpur. Av Milk Proc: 2,700 lpd.
Kanpur Dugdh Utpadak Sahakari Sangh Ltd, Kanpur. Av Milk Proc: 83,700 lpd.
Lucknow Producers' Coop Milk Union Ltd, Lucknow. Av Milk Proc: 6,000 lpd.
Mainpuri Dugdh Utpadak Sahakari Sangh Ltd, Mainpuri. Av Milk Proc: 13,000 lpd.
Mathura Dugdh Utpadak Sahakari Sangh Ltd, Mathura. Av Milk Proc: 14,500 lpd.
Mirzapur Dugdh Utpadak Sahakari Sangh Ltd, Mirzapur.
Moradabad Dugdh Utpadak Sahakari Sangh Ltd, Moradabad. Av Milk Proc: 52,000 lpd.
Muzaffarnagar Dugdh Utpadak Sahakari Sangh Ltd, Muzaffarnagar.
Pratapgarh Dugdh Utpadak Sahakari Sangh Ltd, Pratapgarh. Av Milk Proc: 9,381 lpd.
Rae Bareli Dugdh Utpadak Sahakari Sangh Ltd, Rae Bareli. Av Milk Proc: 5,930 lpd.
Saharanpur Dugdh Utpadak Sahakari Sangh Ltd, Saharanpur. Av Milk Proc: 12,370 lpd.
Shahjahanpur Dugdh Utpadak Sahakari Sangh Ltd, Shahjahanpur. Av Milk Proc: 3,255 lpd.
26
Sitapur Dugdh Utpadak Sahakari Sangh Ltd, Sitapur. Av Milk Proc: 4,700 lpd.
Sultanpur Dugdh Utpadak Sahakari Sangh Ltd, Sultanpur. Av Milk Proc: 12,456 lpd.
Unnao Dugdh Utpadak Sahakari Sangh Ltd, Unnao Av Milk Proc: 9,000 lpd.
Varanasi Dugdh Utpadak Sahakari Sangh Ltd, Varanasi. Av Milk Proc: 16,657 lpd.
27
OBJECTIVES:-
Removing of the middlemen between the producer and consumers by the
procurement of the milk directly by the producers directly through village co-
operative society.
To increase the production of milk from milking animals by providing input to the
producers.
To arrange the supply of liquid milk in major cities of U.P.
28
CHAPTER-II
29
2: COMPANY PROFILE
30
31
2.1: ABOUT THE COMPANY
Name of the organization : Lucknow Producers Co-Operative Milk Union Limited
Address of the organization: 22, Jopling Road, Lucknow
Established : 1938
Registration : 23rd March 1938
Place of establishment : Initially at Charbagh,
Shifted to Ganeshganj.
Presently at 22, Jopling
Road, Lucknow
Founder : Rai Bhadur Gopal Lal Pandya
Board of Directors : Mr. Gopal Pandya
32
Mr. N.C.Chaturvedi
Mr. Tej Shanker
Mr. Pushkar Nath Bhatt
Per day production of milk : Initially 6000 liters
Location : Initially Charbagh, at
Present -22, Jopling Road, Lucknow
Area of Distribution : Initially- Bakshi ka Talab, Tewariganj, Gosainganj
At present- Entire District
Despite several setbacks and hurdles the co-operative has steadily progressed. Operation
Flood-II, which was implemented in U.P in the year 1983-84, provided the much needed
to the co-operative. For the past few years Lucknow Pradeshik Co-operative Dairy
Federation has maintained its lead in area such as distribution, handling and revenue.
33
CORPORATE OVERVIEW
MISSON: PCDF’S mission is to become the strongest marketing organization by
2005.PCDF’S come into existence in 23rd march 1938, with the simple intension of
ensuring a fair return to the producers. Which was implemented in UP is the year 1983-
1984 provided the much needed impetus to co-operation. The mission was to develop a
product mix that would not only promote sustained growth but also help member union to
develop adequate.
VISION: PARAG will continue to grow as an FMCG major, delighting national and
International customers with quality products and services.
34
2.2: ORGANISATION STRUCTURE (LMU)-
35
BOARD OF DIRECTOR
MANAGING DIRECTOR
FINANCE MANAGER
MARKETING MANAGER
PERSONNEL MANAGER
PRODUCTION MANAGER
ASSISTANT MANAGER (FINANCE)
ASSISTANT MANAGER (MARKETING)
ASSISTANT MANAGER (P&A)
ASSISTANT MANAGER (DAIRY PLANT)
SUPRINTENDENT OFFICER
SUPRINTENDENT OFFICER
SUPRINTENDENT OFFICER
SUPRINTENDENT OFFICER
AIMS & OBJECTIVE OF THE ORGANIZATION
Dairy development programme aims at raising the level of income of rural milk
producers, providing them convenient marketing facilities at their door, as well good
quality milk and milk products to the consumers, particularly of the urban areas a
reasonable price. Dairying also provide effective supplement to agriculture, especially for
the weaker section of the society in the rural areas. Adequate provision has been make for
technical and attendant service, such as artificial insemination, animal health fodder,
seeds, green fodder and nutritive cattle fool.
Evaluation of standard of quality of milk and product to be marketed by
federation.
Recommending specification for increasing productivity of milk producer and
related milk societies and member of milk union and members of milk union.
To provide encouragement incentives on production procure, processing and
marketing activities of milk products for the economic development of farmer
community.
36
SALES SUPERVISOR
To improved live stock health and disease control facilities by providing
veterinary services, artificial insemination and animal’s health service to help co-
operative milk unions to achieve this objective.
To encourage market and research and development programmes.
To help members milk unions in technology, administrative and financial
assistance.
To arrange collection, storage and transportation of milk and product.
To encourage activities related to development and extension of dairy industry
to improve the economic development of milk producers and dairy industry.
To establish collection and refrigeration centers, liquid milk units and
processing from various sources.
“Amul” products still have to face very tough competition in Lucknow with
Parag due to the efficient distribution network of the marketing divisions of the
PCDF.
DETAILS OF FUNCTIONAL DEPARTMENT OF THE ORGANIZATION
REGIONAL MARKETING OFFICES:
The marketing of PARAG products is monitored and affected through their six regional
marketing offices located at Lucknow, Rampur, and Delhi, Merrut and varanashi &
37
Kolkata. A regional manager (Marketing) who has a certain area office and also one
warehouse located in the above towns.
Products are transferred from General Manager (Marketing) at the head office to the
stockiest to through the Customer & Forwarding agent and around their respective
regions.
Regional Manager is assisted in his marketing function by team of sales Force who basic
task is the calls on the retailer, book order, increase the no. of retailers and study
competitive environment. The entire marketing operation monitored at the head office
level under the supervision of the General Manager (Marketing) through regular
reporting feedback received from the head office marketing staff that makes regular
intervals at the head office.
MANAGEMENT – THE FORCE WITHIN
The organization boasts of more than 3000 employees that cover a whole gamut of highly
qualified and motivated professional- MBA’s, CA’s, Engineers, Dairy Technologists,
chemists and Veterinarians.
INFRASTRUCTURE (PLANT & MACHINERY)
The organization is equipped with sophisticated plants & machinery to manufacture
Ghee, Table butter, Milk butter, Milk powder and other dairy products on a big scale.
38
PCDF has also distinction of having the most sophisticated & fully computerized first
vertical dairy n India. This is a state of the art project with its various sections located in
the basement and three floors of the building.
MARKETING:
The federation is marketing milk & milk products, under a common brand name
PARAG. The clientele includes several prestigious institutions in UP & Delhi besides the
Indian army. The sales network is spread throughout northern India. Although PCDF
believe that a satisfied customer is their best advertisement.
OTHER PROGRAMMES:
Due to its reputation, efficiency, wide network and quality manpower, PCDF is currently
implementing following developmental and promotional programmes supported by
central/state govt.
Integrated mini dairy project (IMDP)
Women dairy project (WDP)
Rural family welfare projects (RFWP)
39
Diversified agriculture support project(DASP)
These programmes have won many laurels for PCDF adding further to its reputation.
PCDF’s real sense of pride lies in the facts that its farmer member are heading surely and
steadily towards a prosperous future and the knowledge that its consumers reaffirm their
faith in PARAG, year after year. It is in this context, that PCDF’s success is to be
measured.
WELFARE PROGRAMMES IN LMU
In LMU welfare department is a sub-division of PERSONNEL and ADMINISTRATION
department. In Labor Welfare is the head of this sub-division whose work is to
implement welfare programmes to solve out grievance of worker and to maintain
harmonious relationship between workers and management. Following facilities are
provided to the workers at LMU:-
FIRST CATEGORY:-
Drinking water
Restroom
Uniform
Canteen
Health and safety measures within the establishment
SECOND CATEGORY:-
40
Gratuity
Provident fund
Medical facility
Bonus
Housing
Other facilities include death relief fund festival bonus, overtime payment welfare
funds, group insurance policy, etc.
2.3: PRODUCTS OF COMPANY
PARAG deals in various Products in the market such as milk of different variety and
different Composition in the same they deal in Curd, Cheese, Ghee, Butter etc.
Liquid milk
Milk Cake
Paneer
White Butter
Table Butter
Parag Ghee
Parag skimmed milk powder
Parag peda
Parag Dahi
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Parag flavored milk
Parag Mattha
Parag kheer
Parag khoya
Parag besan laddoo
LUCKNOW PRODUCERS CO-OPERATIVE MILK UNION LIMITED
In the following table the details of the products are given with their Weight and Rate.
Rate List
S. No. Name of
PARAG
Products
Pack Size Agent
Rate (Rs. /-)
Consumer
Rate (Rs. /-)
1 PARAG
GOLD
5 Liter 137.50 140.00
2 PARAG
GOLD
1 Liter 29.00 30.00
3 PARAG
GOLD
500 Ml 14.50 15.00
42
4 PARAG
TAZA
1 Liter 23.20 24.00
5 PARAG
TAZA
500 ml 11.60 12.00
6 PARAG
TAZA
200 ml 4.30 4.50
7 PARAG LITE 500 ml 7.50 8.00
8 PARAG LITE 200 ml 3.30 3.50
9 PARAG
GHEE
SHEEKA
PACK
500 ml 120.95 127.00
10 PARAG
GHEE
SHEEKA
PACK
200ml 51.43 54.00
11 PARAG
GHEE
SHEEKA
PACK
1 Liter 240.00 252.00
12 PARAG
BUTTER
20 gm 4.50 4.90
43
13 PARAG
BUTTER
50 gm 12.00 13.00
14 PARAG
BUTTER
100 gm 23.25 25.00
15 PARAG
BUTTER
500 gm 115.50 120.00
16 PARAG
PERA
250 gm 37.00 40.00
17 PARAG
MEETHA
DAHI
100 ml 5.50 6.50
18 PARAG
MEETHA
DAHI
200 ml 11.00 12.00
19 PARAG
SADA DAHI
200 ml 10.00 11.00
20 PARAG
SOFTEY
ICECREEM
10.00
21 PARAG
FLEVOURED
MILK
200 ml 12.00 13.00
22 PARAG RICE
KHEER
100 ml 6.50 7.00
23 PARAG 100 ml 11.00 12.00
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CHENA
KHEER
24 PARAG
CHANCH
500 ml 5.40 6.00
25 PARAG
SMARET
MILK
200 ml 3.80 4.00
26 PARAG
GHEE TIN
PACK
15 kg 4000.00
27 PARAG
RUSGULLA
1 kg 120.00 130.00
28 PARAG
GULAB
JAMUN
500 gm 65.00 70.00
29 PARAG
GULAB
JAMUN
200 gm 26.00 28.00
30 PARAG
BESEN
LADDOO
250 gm 37.00 40.00
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PRESENT STATUS PARAG AND ITS PRODUCTS
Today the working capital of this milk union is more than 4 lakhs liter per day as
compared to 320 liter per day at the beginning. It is expected than in the coming 4-5
years the plan will develop the capacity or producing 8 lakhs liters or more milk per
day.
In present time stall of company PARAG goes on peak and better in the market then
other brands of milk. Quality and purity of PARAG products is better. Demand of
PARAG products is more in the market.
Parag and its products are leader in the present market than other brands like Gyan &
Gokul.
PLACE OF DAIRY INDUSTRY ECONOMY
The dairy industry of now rank second in the world and milk products contribute about
Rs. 8,987 million to the National income India in the current decade rank found in the
46
world in the matter of milk production will about 72.7 million tones (2005-2006) and 75
million tones (2008-2009). The milk production in five years plan is targeted to 90
million tones.
INDUSTRIAL MARKETING MIX
The term mix has been applied to the activity of combining marketing methods of
achieve of combining marketing methods of achieve profitable exploration of the market.
A satisfactory marketing is mix depended upon the establishment or the market’s need.
The establishment or ones objectives and preparation of a strategic marketing plan which
is corporate the various appropriate methods or reaching these objectives.
Following are some typical ingredients of the marketing mix:
Product quality
Product pricing
Product development
Product range
Sales range
Sales aids
Sales promotion
After sales service
47
Advertising
Market research
Stock level
Unit of sales
Distribution arrangements
Credit
Cash discount
Packaging
Sampling
PUBLIC RELATIONS
MARKET PENETRATION
Might consider whether its major brand can achieve deeper market penetration marketing
more sales to present customer without changing products in any way. So to increase the
sales, the company might cut prices, increase advertising, get its products into more
stores, or obtain better store displays and point of purchase merchandising from its
retailers. Basically the management should like to increase usage by current customers of
other brands to theirs.
I NTRODUCTION OF MARKETING DIVISIONS 48
The marketing Management of Pradeshik Co-operative Dairy Federation Ltd. has
been divided into parts:
1. Liquid milk marketing
2. Milk product marketing
Milk Product Marketing
The project marketing division is handling the marketing of butter ghee and dairy
whitener. A part of this, there is creation indigenous products being marketed directly by:
1. Milk butter in 20 mg. Pack
2. Table butter in 20 mg. Pack
3. Pannier 100 gm. Polypack, 500 gm. Polypack.
RESEARCH AND PRODUCT DEVELOPMENT
1. Market research for identification of future consumers needs conceptualization of
future product needs.
2. To develop prototypes of new products established market acceptance, demand &
study their feasibility and economics for commercial production.
3. Formulation of pre-lunch and post-lunch advertising and strategies for new
product for establishing a state demand of product.
4. Regular market survey for existing milk products.
49
5. The review the existing milk and product on the basis of consumer response and to
suggest the remedial measures.
The P.C.D.F. also has SYSTEM DEVELOPMENT AND PACKING MATERIALS
DEVELOPMENT CELL along the above cell betterment future of its products.
HOW THE INDUSTRY WORKS
The given points show PARAG industry bring normal milk, how by testing them
and take other steps and at last packing of the milk take place.
Firstly they collect milk from the villages nearby.
Loading of the milk in the tanker of the factory.
Then we pasteurize the milk with the help boiler house and Refrigeration house.
In the lab we test that whether milk has been Pasteurize or if it not then sends back
for Pasteurization or not if it not then sends back for Pasteurization again.
After testing pasteurization of the milk then test Bacteria’s are present in the milk
or not.
If Bacteria are not present in the milk has been send for packing and from there
packets of the milk come out.
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2.3: SWOT ANALYSIS OF INDIAN DAIRY
STRENGTH:
The major strength of the traditional dairy products sector is the mass appeal
enjoyed by the wide variety of products. The market for these products far exceeds that
for western dairy products like milk powder, table butter and cheese. Their operating
margins are also much higher than the western dairy products. The increasing demand for
these products presents a great opportunity for the organized dairies in the country to
modernize and scale up the production.
WEAKNESS:
The major weakness of this sector is the practice of inadequate hygiene in the preparation
and handling of these products and their relatively short shelf life. The preparation and
marketing of these products is generally done by hallways, and that limits development in
the sector.
OPPORTUNITY:
The expanding business prospects provided by these products and their accompanying
value-addition, call for a through study of this sector. If would facilitate and increase in
the production and marketing of hygienically prepared and properly packed products to
meet the demand of a growing population as has been demonstrated at the NDBS’s
Sugam Dairy.
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THREATS
Milk vendors, the un-organized sector: Today milk vendors are occupying the
pride of place in the industry. Organized dissemination of information about the
harm that they are doing to producers and consumers should see a steady decline
in their importance.
STRATEGIES IN DIFFERENT STAGES OF PLC OF PRODUCTS
INTRODUCTION STAGES:
1. Rapid Skimming :
Most of market unaware of product.
When award consumer are ready to pay high price.
There is the threat of competition coming quickly.
2. Slow Skimming :
Most of the markets are aware of the product.
Market is limited.
When there is threat of competition.
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GROWTH STAGE
Improve product quality, styling, add new features.
Enter new market segment.
Improve distribution coverage.
Reduce price to attract price sensitive buyers.
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CHAPTER- III
3:PROJECT
54
3.1: INTRODUCTION OF PROJECT
Project is related to conduct a customer satisfaction survey to get knowledge about the
customer’s satisfaction level, their loyalty toward PARAG, market position of PARAG and
customer’s suggestion related to PARAG products that helps to provide competitive
advantage to the company against the competitors.
SCOPE OF THE PROJECT
To keep things in mind that as the ever-changing competitive business environment. New
thought and idea should pour into it, research & development to innovate its existing
products, which should be beyond competitor’s comprehension.
This study enables the user with answer to formulate an effective marketing mix strategy with
a broader prospective to tap areas where it did not feel the earlier, hence the decision of
whether to penetrate this section or not can be found out at the end of the data analysis.
It also gives ideas of the potential of our business in the future & the fluctuation in price from
time to time & from product to product.
Special reference is made to the improvement of product in term of packaging, product
innovation and advertisement that help to give competitive advantage against competitors.
55
OBJECTIVES OF THE PROJECT
The market research was done with primary objective of studying the role of PARAG in
providing PARAG products to the consumer easily and according to their taste. Major
objectives of my survey were;
1. To know the consumer perception about the PARAG products and know the
positive & negative aspects of organization.
2. To know what is own image of organization in the market.
3. To determine the appropriate delivery time of the PARAG milk product.
4. To give suitable suggestion.
5. To get the main finding based on questionnaire.
6. To know awareness of consumer about PARAG products.
7. To find satisfaction of consumer with PARAG products.
8. To know SWOT or company (Strength, weakness, opportunity & threats).
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Limitations of the study -
Though the detailed investigation is made in the present study, still there are following
limitations.
This study is restricted only to the INDIRA NAGAR. So, the results may not be
applicable to other areas.
This study is based on the prevailing customer’s. But the customer’s perception may
change according to time, fashion, technology, development, etc.
As per the population of the study is huge; a sample size of 100 sample respondents is
only covered till now.
Data collection of exact data for the research is not possible because there is a gap
between what respondent say and what they actually do.
Information provided by the customers may not be accurate. They may hide some of
the information at the time of filling up the questionnaires.
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CUSTOMER SATISFACTION
Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four perspectives of a Balanced
Scorecard.
In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.
MEASURING CUSTOMER SATISFACTION
Organizations are increasingly interested in retaining existing customers while targeting
non-customers; measuring customer satisfaction provides an indication of how successful
the organization is at providing products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation
of the state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other options the
customer may have and other products against which the customer can compare the
58
Organization’s products. Because satisfaction is basically a psychological state, care
should be taken in the effort of quantitative measurement, although a large quantity of
Research in this area has recently been developed. Work done by Berry, between 2005
and 2006 defined ten 'Quality Values' which influence satisfaction behavior, further
expanded by Berry in 2007 and known as the ten domains of satisfaction. These ten
domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access,
Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment
to the Customer and Innovation.
These factors are emphasized for continuous improvement and organizational change
measurement and are most often utilized to develop the architecture for satisfaction
measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry
between 2007 and 2008 provides the basis for the measurement of customer satisfaction
with a service by using the gap between the customer's expectation of performance and
their perceived experience of performance. This provides the measurer with a satisfaction
"gap" which is objective and quantitative in nature.
CUSTOMER LOYALTY BUSINESS MODEL
The loyalty business model is a business model used in strategic management in which
company resources are employed so as to increase the loyalty of customers and other
stakeholders in the expectation that corporate objectives will be met or surpassed. A
typical example of this type of model is: quality of product or service leads to customer
satisfaction, which leads to customer loyalty, which leads to profitability.
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THE SERVICE QUALITY MODEL
A model by Kay Storbacka, Tore Strandvik, and Christian Gronroos (2001), the service
quality model, is more detailed than the basic loyalty business model but arrives at the
same conclusion. In it, customer satisfaction is first based on a recent experience of the
product or service. This assessment depends on prior expectations of overall quality
compared to the actual performance received. If the recent experience exceeds prior
expectations, customer satisfaction is likely to be high. Customer satisfaction can also be
high even with mediocre performance quality if the customer's expectations are low, or if
the performance provides value (that is, it is priced low to reflect the mediocre quality).
Likewise, a customer can be dissatisfied with the service encounter and still perceive the
overall quality to be good. This occurs when a quality service is priced very high and the
transaction provides little value.
This model then looks at the strength of the business relationship; it proposes that this
strength is determined by the level of satisfaction with recent experience, overall
perceptions of quality, customer commitment to the relationship, and bonds between the
parties. Customers are said to have a "zone of tolerance" corresponding to a range of
service quality between "barely adequate “and "exceptional." A single disappointing
experience may not significantly reduce the strength of the business relationship if the
customer's overall perception of quality remains high, if switching costs are high, if there
are few satisfactory alternatives, if they are committed to the relationship, and if there are
bonds keeping them in the relationship.
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The existence of these bonds acts as an exit barrier. There are several types of bonds,
including: legal bonds (contracts), technological bonds (shared technology), economic
bonds (dependence), knowledge bonds, social bonds, cultural or ethnic bonds, ideological
bonds, psychological bonds, geographical bonds, time bonds, and planning bonds. This
model then examines the link between relationship strength and customer loyalty.
Customer loyalty is determined by three factors: relationship strength, perceived
alternatives and critical episodes. The relationship can terminate if:
1) The customer moves away from the company's service area.
2) The customer no longer has a need for the company's products or services.
3) More suitable alternative providers become available.
4) The relationship strength has weakened.
The final link in the model is the effect of customer loyalty on profitability. The
fundamental assumption of all the loyalty models is that keeping existing customers is
less expensive than acquiring new ones.
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According to Buchanan and Gilles (2002), the increased profitability associated with
customer retention efforts occurs because:
Account maintenance costs decline as a percentage of total costs (or as a percentage
of revenue).
Long term customers tend to be less inclined to switch and also tend to be fewer
prices sensitive. This can result in stable unit sales volume and increases in dollar-
sales volume.
Long term customers may initiate free word of mouth promotions and referrals.
Long term customers are more likely to purchase ancillary products and high-margin
supplemental products.
Long term customers tend to be satisfied with their relationship with the company and
are less likely to switch to competitors, making market entry or competitors' market
share gains difficult.
Regular customers tend to be less expensive to service because they are familiar with
the processes involved, require less "education," and are consistent in their order
placement. Increased customer retention and loyalty makes the employees' jobs easier
and more satisfying. In turn, happy employees feed back into higher customer
satisfaction in a virtuous circle.
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LOYALTY MARKETING
Loyalty marketing is an approach to marketing, based on strategic management, in
which a company focuses on growing and retaining existing customers through
incentives. The discipline of customer loyalty marketing has been around for many years,
but expansions from it merely being a model for conducting business to becoming a
vehicle for marketing and advertising have made it omnipresent in consumer marketing
Organizations since the mid- to late-1999s. Some of the newer loyalty marketing industry
insiders, such as Chris X. Moloney and Fred Reichheld, have claimed a strong link
between customer loyalty marketing and customer referral. In recent years, a new
marketing discipline called "customer advocacy marketing" has been combined with or
replaced "customer loyalty marketing." To the general public, many airline miles
programs, hotel frequent guest programs and credit card incentive programs are the most
visible customer loyalty marketing programs.
CUSTOMER FOCUS
Many companies today have a customer focus (or customer orientation). This implies that
the company focuses its activities and products on consumer demands. Generally there
are three ways of doing this: the customer-driven approach, the sense of identifying
market changes and the product innovation approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic
marketing decisions. No strategy is pursued until it passes the test of consumer research.
63
Every aspect of a market offering, including the nature of the product itself, is driven by
the needs of potential consumers. The starting point is always the consumer. The
rationale for this approach is that there is no point spending R&D funds developing
products that people will not buy. History attests to many products that were commercial
failures in spite of being technological breakthroughs.
A formal approach to this customer-focused marketing is known as SIVA (Solution,
Information, Value, and Access). This system is basically the four Ps renamed and
reworded to provide a customer focus.
The SIVA Model provides a demand/customer centric version alternative to the well-
known 4Ps supply side model (product, price, place, promotion) of marketing
management.
Product -> Solution
Promotion -> Information
Price -> Value
Place ->Access
The four elements of the SIVA model are:
Solution: How appropriate is the solution to the customer’s problem/need.
64
Information: Does the customer know about the solution, and if so how, who from,
do they know enough to let them make a buying decision
Value: Does the customer know the value of the transaction, what it will cost, what
are the benefits, what might they have to sacrifice, what will be their reward?
Access: Where can the customer find the solution? How easily/locally/remotely can
they buy it and take delivery.
This model was proposed by Chekitan Dev and Don Schultz in the Marketing
Management Journal of the American Marketing Association, and presented by them in
Market Leader - the journal of the Marketing Society in the UK.
The model focuses heavily on the customer and how they view the transaction.
PRODUCT FOCUS
In a product innovation approach, the company pursues product innovation, and then tries
to develop a market for the product. Product innovation drives the process and marketing
research is conducted primarily to ensure that a profitable market segment(s) exists for
the innovation. The rationale is that customers may not know what options will be
available to them in the future so we should not expect them to tell us what they will buy
in the future. However, marketers can aggressively over-pursue product innovation and
try to overcapitalize on a niche. When pursuing a product innovation approach, marketers
must ensure that they have a varied and multi-tiered approach to product innovation.
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3.3:RESEARCH
METHODOLOGY
66
INTRODUCTION:-
My reseach project work is the study “A STUDY OF CONSUMER PERCEPTION
ABOUT PARAG PRODUCTS IN LMU,LUCKNOW”.This chapter include signification
of research, research design, sample size, sampling method, method of data collection
etc.
MEANING OF RESEARCH:-
Research in common pariance refers to a search for knowledge. One can also define
research as a scientific systematic research for pertinent information on a specific topic.
In fact, research is an art of scientific investigation.
The Advanced Learner’s Dictionary of current English lays down the meaning of
research as “a careful investigation or inquiry especially through search for new facts in
any branch of Knowledge”.
RESEARCH METHODOLOGY
“Marketing Research” is a key to evolution of successful marketing &
programmes. It is an important tool to study buyer behaviors, changes in consumer life
style & consumption patterns brand loyalty and forecast market changes. Research is also
used to study competition & analysis the competitor’s products positioning, MR is also
useful to help create & enhance equity.
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SIGNIFICATION OF RESEARCH
1. Research inculcates scientific and inductive thinking and it promotes the
development of logical habits of thinking and organization.
2. The role of research is several fields of applied economics, whether related to
business or to the economy as a whole, as the greatly increased in modern times.
The increasingly complex nature of business and government has focused
attention of the use of research in solving operational problems.
3. Research provides the basis for nearly all government polices in our economic
system.
4. Research has its special significance in solving various operational and planning
problems of business and industry. Operations research and market research, along
with motivational research are considered crucial and their results assist, in more
than one way, in taking business decisions.
5. Research is equally important for social scientists is studying social relationships
and in seeking answers to various social problems. It provides the intellectual
satisfaction of knowing a few things just for the sake of knowledge and also has
practical utility for the social scientist to know for the sake of being able to do 68
something better or in a more efficient manner.
EXPLORATORY RESEARCH DESIGN
Exploratory research studies are also term as formulating research studies. The main
purpose of such studies is that of formulating a problem for more precise investigation or
of developing the working hypothesis from an operational point of view the major
emphasis in such studies is on the discovery of idea and insights. As such there research
design appropriates for such studies must be flexible enough to provide opportunity for
considering different aspect of a problem under study.
Present research is exploratory in nature it is aim together relevant information customer
perception towards PARAG PRODUCTS in Lucknow, and about their loyalty towards
the PARAG.
For this research project two types of data has been use
a. Primary data
b. Secondary data
69
PRIMARY DATA
Primary data are those, which are collected for the first time and are those original in
character. Primary data are in the shape of raw material to which statistical method are
applied for the purpose of analysis & interpretation primary are been collected in market
by following method:-
Questionnaire(100) respondents
I have been collecting primary data by the method of survey of persons. Because of
systematic gathering of data from respondents through questionnaire, which is objective
oriented, unambiguous interesting, simple, accurate and systematic motivating to
respondent and complete in information concern?
SECONDARY DATA
Secondary data are those which have already been collected by some other person and
which have been passed through the statistical machine at least once.
I collect the Secondary data with the help of company records and company website etc.
EXTERNAL DATA:
This type of Secondary data can be obtained from the outside sources e.g. magazine,
journal, newspaper, article and the World Wide Web.
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METHOD OF DATA COLLECTION:
As the research is about consumer behavior so Questionnaire is the best method to
collect information about the consumer perception.
AREA OF THE STUDY: This study covers Indira Nagar only.
SAMPLE SIZE: The sample size covered for the purpose of this study is 100.
SAMPLING METHOD: Stratified sampling. Because, I have done my research in
specific area.
STRATIFIED RANDOM SAMPLING:
The sampling procedure may be summarized as follow -
The universe to be sample is divided (or stratified) into group.
Those are mutually exclusive and include all items in the universe.
A simple random sample is than chosen independently from each group of Stratum.
The process of stratified random sampling differs from simple random sampling in that,
with the later, sample item are chosen from each stratum chance.
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4:DATA
ANALYSIS72
4.1: TABULATIONS OF DATA
1. Which of the Parag products do you consume?
TABLE NO.1- The preference of respondents towards each Parag Products.
Product name Number of Consumers Percentage
FLAVORED MILK 52 52
SWEET CURD 32 32
MATTHA 50 50
MILK CAKE 14 14
ICE CREAM 06 06
PANEER 08 08
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FIG.1- The preference of respondents towards each Parag Products.
Interpretation-
The above table shows that 52% consumers are consuming Flavoured milk, 50%
Consumers are consuming Mattha, 32% Sweet Curd, 14% consumers are consuming
Milk cake, 6% Ice cream and 8% Paneer.
2. What is the in take of the product you use?
TABLE NO. 2 The response of respondents about Parag product consumption.
Product Name No. of consumersDaily Weekly Monthly
FLAVORED MILK
60 34 08
MATTHA 20 38 42
PANEER 0 67 33
SWEET CURD 22 68 10
74
X axis
Y axis
FIG. 2 The response of respondents about Parag product consumption.
Interpretation-The above table shows that 60%, 20%, 8% Flavored milk,
20%, 38%, 42%Mettha, 0%, 67%, 33%Paneer, 22%, 68%, 10% Sweet curd consumer use
Daily, weekly, monthly respectively.
3. Do you think that parag products are worth the money paid by you?
TABLE NO. 3 The response of respondents towards worthiness of parag products.
Think No. of consumers Percentage
Yes 84 84
No. 16 16
75
Y axis
X axis
FIG. 3 The response of respondents towards worthiness of parag products.
Interpretation-
The above table shows the 84% consumers think that parag products are worth the money
Paid by them, 16% consumers think that parag products are not worth the money paid by
them.
4. Which basis you consider while buying Parag products?
TABLE NO. 4 The response of respondents towards buying preference due to Price,
Brand name, Taste, Purity and Quality.
Cause of buying No. of Consumers Percentage
Price 54 54
Brand Name 16 16
Taste 64 64
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X axis
Y axis
Purity 54 54
Quality 68 68
FIG. 4 The response of respondents towards buying preference due to Price, Brand name,
Taste, Purity and Quality.
Interpretation-
From the above table it is clear that the mostly 68% consumer buy Parag products due to
Its better quality, 64% due to taste 54% due to price & purity and 16% due to brand
name of it.
5. If other brands are available at the same quality, would you like to switch over to
other brand?
TABLE NO. 5 The response of respondents towards switching over to other brands if
available at the same quality.
Think No. of consumers Percentage
Yes 32 32
77
Y axis
X axis
No. 64 68
FIG. 5 The response of respondents towards switching over to other brands if available at
the same quality.
Interpretation-
Above table shows that 32% consumers would switch over when other brands are
available in same quality 68% have no effect.
78
Y axis
X axis
6. Do you come across problems regarding the non availability of Parag products?
Table No. 6- The response of respondents towards facing problem in availability of parag
product.
Think Consumers Percentage
Yes 88 88
No. 12 12
FIG. 6- The response of respondents towards facing problem in availability of parag
product.
Interpretation-
Above table shows that 88% consumers want more number of booths set up in their
location & 12% have no effect.
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X axis
Y axis
7. Are you satisfied with the price of Parag Products?
TABLE NO. 7- The response of respondents towards price of PARAG products.
Think Consumers Percentage
Yes 60 60
No. 40 40
FIG. 7- The response of respondents towards price of PARAG products.
Interpretation-
Above table shows that mostly 60% consumers are satisfied with price of parag products
40% are dissatisfied.
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X axis
Y axis
8. Are you satisfied with the quality of Parag products?
TABLE NO. 8- The response of respondents towards quality of PARAG products.
Think Consumers Percentage
Yes 92 92
No. 08 08
FIG. 8- The response of respondents towards quality of PARAG products.
Interpretation-
Above table shows that most of 92% consumers are satisfied with quality of Parag
Products and only 8% are dissatisfied.
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X axis
Y axis
Analysis & interpretations of Data
64% consumes are satisfied with the taste of Parag products & 36% consumer are
dissatisfied.
60% consumer are satisfied with the price of Parag products, 40% consumer are
dissatisfied.
92% consumers are satisfied with the quality of Parag products & 8% consumers
are dissatisfied.
88% consumer wants more number of Parag booths to be set in their locality &
12% have no effect.
32% consumers have positive response to switch over, if other brands are available
at the same quality & 68% consumer have no response.
We contacted with 100 consumers, 54 consumers are using Parag Milk but 46
consumers use other brands.
During the survey we found 63% Consumer are buying one liter milk, 31%
Consumers are buying 0.5 liter milk, and 6% Consumer are buying 0.25 Liter milk.
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4.2:FINDINGS
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FINDINGS
By the help of analysis & interpretation of the data we come to some findings, these findings
are as follows.
PARAG has good market position in the regional market. It holds 52% of market
Share. This shows the loyalty of customers towards the PARAG.
Most of the customers are satisfied with the quality & availability of PARAG
products.
Increasing price of PARAG milk & other products are the big challenge for the
PARAG, because these products are available in the market at the comparatively
lower price.
Customers want to make the availability of the PARAG products nearer to their
home.
Establishment of PARAG milk ATM gives the PARAG a competitive advantage
and enhance the availability among the customers.
40% of customers are not satisfied with the price of the PARAG products. They
suggest the reduction in the price of PARAG products.
Some customers want to improve the packaging of the PARAG products.
Most of the customers are aware about the new PARAG products from the retailer
shops.
That is retailers are the main source of making the customer aware about the
PARAG products.
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4.3:LIMITATIONS
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LIMITATIONS
Some of the respondents were not cooperative.
Some respondents were hesitating to give the details.
Biasness is another limitation that the scope of the survey.
The reliability and scope of survey greatly relies on the cooperation of the
respondents.
Due to illiteracy of some respondents, specific information could not be
recovered.
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SUGGETIONS
&
RECOMMANDATIONS
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SUGGESTIONS & RECOMMENDATIONS
1. More milk ATM should be established to enhance the availability of Parag milk.
2. Make the customers aware about the Parag products through different mode of
advertisement.
3. There should be no leakage in the liquid milk & if the exists than these packets
should be replaced.
4. Packing of the liquid milk should be reusable that helps to reduce the price of the
products.
5. On line information about the Parag products & trading should be facilitate by the
company.
6. There should be regular visit for getting the customer feedback about the Parag
products. This helps to know the changing demand of the customers.
7. For fulfilling the increasing demand of milk the company should try to increase the
production.
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4.4: BIBLIOGRAPHY
1. BOOKS:-
Research Methodology – C. R. Kothari
Principles of Marketing – Philip Kotler
2. OTHER SOURCES :-
India Today
Business World
Annual report of Parag
www.nddb.com
www.paragmilk.com
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4.5:ANNEXURE
90
QUESTIONNAIRE-
This questionnaire has been designed for a survey on “A STUDY OF CONSUMER
PERCEPTION ABOUT PARAG PRODUCTS IN LMU,LUCKNOW”.Your inputs will
be crucial in making final study.Please take a couple of minute in compeleting this brief
questionnaire.This is confidencial & jest for purpose of study.So please provide true
inputes.
A. Full Name: _________________________
B. Address ______________________________________________________
C. Contact NO.:________________ Mob: _________________
D. Sex: Male Female
E. Occupation:
Student Service
Job Retired Business
Unemployed
1. Which of the Parag product do you consume?
Flavored milk
Sweet curd
Mattha
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Ice cream
Paneer
2. What is the in take of product your use?
Flavored milk (daily/weekly/monthly)
Sweet curd (daily/weekly/monthly)
Mattha (daily/weekly/monthly)
Paneer (daily/weekly/monthly)
3. Do you think that parag products are worth the money paid by you?
yes
No.
4. Do you come across problems regarding the non availability of Parag products?
yes
No
5. Which basis you consider while buying Parag products?
Price
Brand Name
Taste
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Purity
Quality
6. If other brands are available at the same quality, would you like to switch over to
other brand?
yes
No
7. Do you want more number of Parag booths to be set up in your location?
yes
No
8. Are you satisfied with the price of Parag Products?
Yes
NO
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ACTIVITY-1
MARKET SHARE OF DIFFERENT MILK COMPANIES IN LUCKNOW
During the project a survey is being conducted to know the market share of Parag in
Indira Nagar. This survey is been done among 100 people. This is shown with the help
of following table and Pie chart:
1. Which brand of milk or milk product you usually prefer to use?
Table No. 1.1
Company No. of consumer in%
Parag 54
Amul 19
Deva 4
Fresh 23
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Analysis:
1. It is clear from the chart that 54% people give preference to parag.
2. 30% people of the sample buy Amul milk.
3. 12% people are taking deva milk.
4. 4% people are using Fresh milk.
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2. Which time of the day do you purchase the milk?
IT IS CLEAR FROM THE CRAPH THAT:
1. 46% consumer is buying milk in the morning.
2. 24% Consumers are buying milk in evening.
3. 30% Consumer are buying milk in both times.
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3. How much quantity of milk you purchase per day?
QUANTITY NORMALLY DEMANDED OF MILK
IT IS CLEAR FROM THE GRAPH THAT:
1. 63% Consumer are buying one liter milk.
2. 31% Consumers are buying 0.5 liter milk.
3. 6% Consumer are buying 0.25 Liter milk.
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