Parag Project

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SUMMER TRAINING PROJECT REPORT (MBA-035) On

“CONSUMER PERCEPTION ABOUT PARAG PRODUCTS” AT LUCKNOW CO-OPERATIVE MILK UNION LTD. LUCKNOW Submitted in partial fulfillment of Master of Business Administration Administration Programme: (2009-011) Of  Uttar Pradesh Technical University, Lucknow SUBMITTED BY ADITYA KUMAR  MBA – 3RD SEMESTER  0901470002

Sri Ram Murti Smarak College of Engineering & Technology, Bareilly FACULTY OF MANAGEMENT SCIENCE CERTIFICATE

This is to certify that Mr. ADITYA KUMAR, a regular student of  M.B.A. has un unde derg rgon onee Summ Summer er Trai Traini ning ng in LUCK 2009 2009 Batc Batch h has LUCKNW NW COCOOPERA OPERATIV TIVE E MILK MILK UNION UNION LTD. LTD. On the the top opiic of  “CONSUMER  PERCEPTION ABOUT PARAG PRODUCTS”  for a period of 4 weeks commencing from 14-june-2010 14-june-2010 to 15 -July-2010. This Summer Training Project Report embodies the facts a figure collected

and

interpreted

by

him

during

the

course

of

Training.

(Mrs. Priyanka Sharma) Faculty Guide (ANANT KUMAR SRIVASTAVA) (Dr. S.P. GUPTA) HOD - MBA DIRECTOR GENERAL

DECLARATION

I here by declare that the project, which is being presented in this report, entitled “CONSUMER PERCEPTION ABOUT PARAG PRODUCTS”A STUDY WITH REFERENCE TO LUCKNOW MILK UNION, 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

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 (Mar (Marke keti ting ng Inch Inchar arge ge)) & Mr. Mr. Gaur Gaurav av Sing Singh h (Sal (Sales es Su Supe perv rvis isor or)) of  Luckno Luc know w Produc Producer’ er’ss Co-op Co-op Milk Milk Union Union Ltd Ltd.. for for his his able able gu guid idan ance ce,, 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)

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 stud studen entt can can un unde ders rsta tand nd the the mana manage geme ment nt work workin ing g in the the area area of ther theree specializa specialization tion.. Actually Actually practical practical knowledge knowledge increases increases the knowledge knowledge of  students in real field of market & also integrates the theoretical concepts with the practical working of the organization. Accept Accepting ing the above above facto factors rs the manage managemen mentt progra programs ms of ou ourr instit institute ute (SRM (SRMSC SCET ET BARE BAREIL ILLY LY)) has has made made prac practi tica call trai traini ning ng must must for for thei their  r  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 CO-OPERATIVE 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 the repo report rt requ requir irem emen ents ts.. I used used the the prim primar ary y and and seco second ndar ary y data data for  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 LUCK LUCKNO NOW W PROD PRODUC UCER ERS S CO-O CO-OPE PERA RATI TIVE VE MILK MILK UNIO UNION N LTD. LTD.

TABLE OF CONTENTS

PART-1 CHAPTER- I PAGE NO. 1: INDUSTRIAL PROFILE

1.1: Dairy Industry ……………………………………………………….. 11 1.2: National Dairy Development Board (NDDB)………………………... (NDDB)………………………... 17 1.2.1: Aims & Objectives of NDDB………………………………………… NDDB………………………………………… 20 1.3: Dairy Co operatives………………………………………………….. 21 1.4: Pradeshik Co-operative Dairy Federation (PCDF) Ltd. Profile……... 23 1.4.1: Milk Co-operatives in Utter Pradesh…………………………… Pradesh…………………………………. …….

25 1.4.2: Objectives of PCDF………………………………………………….. 27 CHAPTER- II 2: COMPANY PROFILE

2.1: About the company…………………………………………………… 28 2.1.1: Corporate overview…………………………………………………... 30 2.2: Organizational Structure & Hierarchy…………………………… Hierarchy………………………………... …... 31 2.2.1: Aims & objective of the organization……………………… organization………………………………… ………… 32 2.2.2: Details of functional department of the organization…………………. organization…………………. 33 2.2.3: Welfare programmes in LMU………………………………………… 36 2.3: Products of the company……………………………………………... 37 2.3.1: Rate list of products…………………………………………………… 39 2.3.2: Present status of parag & its products…………………………………. products…………………………………. 42 2.3.3: How the industry works……………………………………………….. 46 2.4: SWOT Analysis………………………………………………………. 47 2.4.1: Strategies in different stages of PLC of products……………………… products……………………… 48

PART-2 CHAPTER- III 3: ABOUT THE PROJECT

3.1: Introduction of the project……………………………………… project…………………………………………... …... 51 3.2: Research Objective ……………………......................................... ……………………............................................. .... 52 3.2.1: Customer satisfaction………………………… satisfaction……………………………………………… ……………………... ... 53 3.3: Research Methodology……………………… Methodology………………………………………… ……………………..... …..... 62 3.3.1: Significance of research…………………………… research………………………………….................. …….................... 63 3.3.2: Research design & method of data collection………………………... collection………………………... 64 CHAPTER- IV 4: DATA ANALYSIS

4.1: Data Analysis & Interpretation……………………………………… 67 4.2: Findings……………………………………………………………… 81 4.3: Suggestions & Limitations………………………………………… Limitations…………………………………………... ... 82 4.4: Bibliography…………………....... Bibliography………………….................................... ..................................................... ........................ 84 4.5: Annexure…………………………………………………………….. 85 4.5.1: Actvity-1…………………………………………………………....... 87

LIST OF TABLESS.NO.. PARTICULAR PAGE NO. S.NO table no.1- The response of respondents about consumption 67

of Parag Products. table no. 2- The preference of respondents towards each Parag 68

 products. TABLE NO. 3- The response of respondents towards switching 69

over to other brands if available at the same quality. Table no. 4- The response of respondents towards consumption 70

frequency of Parag product. TABLE NO. 5- The response of respondents towards worthiness of 71

Parag products. TABLE NO.6- The response of respondents towards facing problem 72

in availability of Parag product. TABLE NO. 7- The response of respondents’ wants more number of Parag 73

ATM to be set up in your location. TABLE NO. 8- The response of respondents towards price of Parag 74

 products. TABLE NO. 9- The response of respondents towards quality of Parag 75

 products. TABLE NO.10- The response of respondents towards taste of Parag 76

 products. TABLE NO. 11- The response of respondents towards purity of Parag 77

 products. TABLE NO. 12- The response of respondents towards packaging of 78

Parag

products.

LIST OF FIGURESS.NO.. PARTICULAR PAGE NO. S.NO figure no. 1- The response of respondents about consumption 67

of Parag Products. figure no. 2- The preference of respondents towards each Parag 68

 products. figure no. 3- The response of respondents towards switching 69

over to other brands if available at the same quality. figure no. 4- The response of respondents towards consumption 70

frequency of Parag product. figure no. 5- The response of respondents towards worthiness of 71

Parag products. figure no. 6- The response of respondents towards facing problem 72

in availability of Parag product. figure no. 7- The response of respondents’ wants more number of 73

Parag ATM to be set up in your location. figure no. 8- The response of respondents towards price of Parag 74

 products. figure no. 9- The response of respondents towards quality of Parag 75

 products. figure no.10-The response of respondents towards taste of Parag 76

 products. figure no.11-The response of respondents towards purity of Parag 77

 products. figure no.12-The response of respondents towards packaging of 78

Parag products.

PART-1

CHAPTER-1 INDUSTRY PROFILE 1.1: DAIRY INDUSTRY PROFILE

Today, Toda y, Indi Indiaa is 'Th Thee Oyst Oyster er'' of the the glob global al dair dairy y indu indust stry ry.. It offe offers rs 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 the gall gallop opin ing g prog progre ress ss arou around nd the the worl world. d. As he expa expand ndss his his ov over erse seas as 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. 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 food foodss sect sector or and and also also by incr increa ease se in the the conv conver ersi sion on of milk milk into into milk  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 esti estima mate tes, s, Indi Indian an prod produc ucti tion on has has incr increa ease sed d by 5 per per cent cent.. Th Thee milk  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. 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 - Availa Availabi bilit lity, y, Accept Acceptabi abili lity ty 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 esse essenc ncee of the the chal challe leng nge. e. One One prac practi tica call way way is to pack pack milk milk in smal smalll 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. 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 other local local dairy dairy cooper cooperati atives ves have have their their local local brands brands (For (For e.g. e.g. Gokul, 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, Dairy, Herita Heritage ge Foods, Foods, Indian Indianaa Dairy, Dairy, etc. etc. Amrut Amrut Indust Industrie ries, s, once once a leading player in the sector has turned bankrupt and is facing liquidation.

EXPORET 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    pro produ duct ctss are are Bang Bangla lade desh sh,, Chin China, a, Hong Hong Kong Kong,, Sing Singap apor ore, e, Th Thai aila land nd,, Malays Malaysia, ia, Philip Philippin pines, es, Japan, Japan, UAE, UAE, Oman Oman and other other gulf gulf countr countries ies,, all located close to India. 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, ghee, paneer paneer,, shrikh shrikhand and,, rasgol rasgolas as and other other ethnic ethnic sweets sweets to the large 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. 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.

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. 1.2.1: 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 also Provid Providee an effect effective ive supple supplemen mentt to agric agricult ulture ure,, especi especiall ally y for the weaker sections of the society in the rural areas. Adequate provision has   bee been n made ade for tech echnica nicall and and atte attend ndaant serv servic icees such such as arti rtifici ficial al insemination, animal health, fodder seeds and nutritive cattle food. •

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.

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: 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 

1.4.2: OBJECTIVES OF PRADESHIK CO-OPERATIVE DAIRY FEDERATION LIMITED •

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.

CHAPTER-II COMPANY PROFILE 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 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 Desp Despit itee seve severa rall setb setbac acks ks and and hu hurd rdle less the the co-o co-ope pera rati tive ve has has stea steadi dily ly  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.

2.1.1:

CORPORATE

OVERVIEW

MISSON

PCDF’S PCDF’S missio mission n is to become become the strong strongest est market marketing ing organ organiza izatio tion n 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 cooperation. 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.

2.2: ORGANISATION STRUCTURE (LMU)-

Paneer White Butter Table Butter

•

Parag Ghee

•

Parag skimmed milk powder

•

Parag peda

•

Parag Dahi

•

Parag flavored milk 

•

Parag Mattha

•

Parag kheer

•

Parag khoya

•

Parag besan laddoo

2.3.1: 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

Agent

Consumer

S. No. Name ame o off P Par ara ag Pro Produ duccts Pack ack Siz Sizee Rate (Rs. /-)

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

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 200ml PACK 

51.43

54.00

11

pARAG gHEE SHEEKA 1 Liter PACK 

240.00

252.00

20 gm

4.50

4.90

12

parag butter

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 icecream

21

Parag flAvoured milk 

200 ml

12.00

13.00

22

parag rice kheer

100 ml

6.50

7.00

23

parag chena kheer

100 ml

11.00

12.00

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

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

10.00

4000.00

2.3.2: PRESENT status of 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 world in the matter of milk production will about 72.7 million tones (2005-2006) (2005-2006) and 75 million tones (2008-2009). The milk milk produ roduct ctio ion n in five five year yearss plan plan is targ target eted ed to 90 mill millio ion n tone tones. s.

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 Advertising Market research Stock level Unit of sales Distribution arrangements Credit Cash discount Packaging Sampling Public Relations MARKET PENETRATION

Migh Mightt cons consid ider er whet whethe herr its its majo majorr bran brand d can can achi achiev evee deep deeper er mark market et   penet penetrat ration ion market marketing ing more more sales sales to prese present nt custom customer er withou withoutt changi changing ng  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 .

Introduction of marketing divisions

The marketing Management of Pradeshik Co-operative Dairy Federation Ltd. has been divided into parts: Liquid milk marketing 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: Milk butter in 20 mg. Pack  Table butter in 20 mg. Pack  Pannier 100 gm. Polypack, 500 gm. Polypack. Research and product development

Market research for identification of future consumers needs conceptualization of future product needs. To develop prototypes of new products established market acceptance, demand & study their feasibility and economics for commercial  production. Formulation of pre-lunch and post-lunch advertising and strategies for  new product for establishing a state demand of product. Regular market survey for existing milk products. The review the existing milk and product on the basis of consumer  response and to suggest the remedial measures. The P.C. The P.C.D. D.F. F. also also has has Syst System em deve develo lopm pmen entt and and Pack Packin ing g mate materi rial alss DEVELOPMENT cell along the above cell betterment future of its products.

2.3.3: 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. 2.4: 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   pro produ duct cts. s. Th Thee incr increa easi sing ng dema demand nd for for thes thesee prod produc ucts ts pres presen ents ts a grea greatt 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 expand expanding ing busine business ss prospe prospects cts provid provided ed by these these produc products ts and their  their  accomp accompany anying ing valuevalue-add additi ition, on, call call for a throug through h study study of this this sector 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   pop popul ulat atio ion n as has has been been demo demons nstr trat ated ed at the the NDBS NDBS’s ’s Suga Sugam m Dair Dairy. y. 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. 2.4.1: STRATEGIES in different stages of PLC of Products

Introduction STAGE 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. Slow Skimming : •

Most of the markets are aware of the product.

• Market is limited. •

When there is threat of competition.

Growth Stage

• Improve product quality, styling, add new features. •

Enter new market segment.

•

Improve distribution coverage.

• Reduce price to attract price sensitive buyers.

PART-2

CHAPTER-III PROJECT 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 envi enviro ronm nmen ent. t. New New thou though ghtt and and idea idea shou should ld po pour ur into into it, it, rese resear arch ch & develo developme pment nt to innova innovate te its existi existing ng produ products cts,, which which should should be beyond 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.

3.2: 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; To know the consumer perception about the Parag products and know the positive & negative aspects of organization. To know what is the image of the organization in the market. To determine the appropriate delivery time of the Parag milk   product. To know awareness of consumer about Parag products. To find satisfaction level of consumer with Parag products.

3.2.2: CUSTOMER SATISFACTION Customer satisfaction satisfaction , a  business term 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 Scorecard.In a competitive marketplace where   businesses compete for customers, customer satisfaction is seen as a key diff differ eren enti tiat ator or and and incr increa easi sing ngly ly has has beco become me a key key elem elemen entt of bu busi sine ness ss strategy. MEASURING CUSTOMER SATISFACTION

Organizati Organizations ons are increasin increasingly gly intereste interested d in retaining retaining existing existing customers 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 and othe ther prod roducts ucts agai gainst nst whic hich the the cust custom omer er can comp compar aree the the Organization’s products. Because satisfaction is basically a psychological state, care should be taken in the effort effort of quanti quantitat tative ive measur measureme ement, nt, althou although gh a large large quanti quantity ty of  Research in this area has recently been developed. Work done by Berry,   bet betwe ween en 20 2005 05 and and 20 2006 06 defi define ned d ten ten 'Qua 'Quali lity ty Valu Values es'' whic which h infl influe uenc ncee satisfaction behavior, further expanded by Berry in 2007 and known as the ten domain domainss of satisf satisfact action ion.. These These ten domain domainss of satisf satisfact action ion includ include: e: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Interdepartmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. Thesee fac Thes factor tors are emph emphaasize sized d for for cont contin inuo uous us impr impro ovem vement ent 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 loyalt loyalty y busine business ss model model is a   busin business ess mod model el use 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 of  product or service or  service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability. No. of consumers Figure no.2- The  preference

Percentage (%)

of  respondent s towards each each Parag Parag  products. Interpreta tion-

The abov The abovee table shows that 52% consumers are consuming Flavored milk, 50% Consumers are consuming Mattha, 32% Sweet Curd Curd,, 14 14% % consumers are consuming Milk Milk cake cake,, 6% Ice crea cream m and and 8% Paneer. 3. If other  ther    bra brand ndss are are available at t he same quality, woul would d yo you u like to switch over 

to other    brand? descriptio n:-i want to know consumers  preference if other   brand are available at t he same quality. TABLE NO. 3- The response of  respondent s towards switching over to other  brands if  available at t he same quality.

Think 

Yes No.

32

32 68

68

Figure no. 4- 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. 5. Do you think that Parag products are worth the money paid by you? description:-i want to know that how many consumers think that Parag  products are worth the money paid by them. TABLE NO. 5- The response of respondents towards worthiness of Parag  products.

Think

No. of consumers

Percentage (%)

Yes

84

84

No.

16

16

FIGURE NO. 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. 7. Do you want more number of Parag ATM to be set up in your location? description:-i want to know how many consumers want more number of  Parag ATM to be set up in your location. TABLE NO. 7- The response of respondents’ wants more number of Parag ATM to be set up in your location.

Think

Consumers

Percentage (%)

Yes

88

88

No.

12

12

FIGure no. 8- 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.

9. Are you satisfied with the quality of Parag products? dEscriPTIon:-i want to know the satisfaction level of consumers with the quality of Parag products. TABLE NO. 9- The respon response se of respon responden dents ts toward towardss qualit quality y of Parag Parag  products.

Think

Consumers

Percentage (%)

Yes

92

92

No.

08

08

FIGURE NO. 10- The response of respondents towards taste of Parag  products. Interpretation-

Above table shows that 64% consumers are satisfied with taste of Parag products and only 36% are dissatisfied.

11. Are you satisfied with the purity of Parag products? dEscriPTIon:-i want to know the satisfaction level of consumers with the  purity of Parag products. TABLE NO. 11- The response of respondents towards purity of Parag  products.

Think

Consumers

Percentage(%)

Yes

92

92

No.

08

08

FIGURE NO. 12- The response of respondents towards packaging of Parag  products. Interpretation-

Above table shows that 76% consumers are satisfied with packaging of  Parag products and only 24% are dissatisfied. 4.2: 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.

• Mostly consumers are satisfied with quality of the Parag products.

4.3: LIMITATIONS 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.

•

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.

•

Information provided by the customers may not be accurate. They may hide some of the information at the time of filling up the questionnaires.

•

Due to illiteracy of some respondents, specific information could not  be recovered. SUGGESTIONS & RECOMMENDATIONS

More milk ATM should be established to enhance the availability of  Parag milk. Make the customers aware about the Parag products through different mode of advertisement. There should be no leakage in the liquid milk & if the exists than these  packets should be replaced. Packing of the liquid milk should be reusable that helps to reduce the  price of the products. On line information about the Parag products & trading should be facilitate by the company. There should be regular visit for getting the customer feedback about the Parag products. This helps to know the changing demand of the customers.

For fulfilling the increasing demand of milk the company should try to increase the production.

4.4: BIBLIOGRAPHY BOOKS:•

Research Methodology – C. R. Kothari,2nd revised addition

•

Principles of Marketing – Philip Kotler,13 th addition

OTHER SOURCES :•

India Today

•

Business World

•

Annual report of Parag

•

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•

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4.5: ANNEXURE 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 completing this brief  questionnaire. This is confidential & jest for purpose of study. So please  provide true inputs. A. Full Name: _________________________  _________________________  B. Address:  _____________________________  ____________________________________________ _________________________  __________  C. Contact NO.:________________ NO.:________________ Mob: _________________  _________________  D. Gender: Male ð Female E. Occupation: Student Service Job Retired Business Unemployed 1. Do you consume Parag products?  No

2. Which of the Parag product do you consume? Flavored milk Sweet curd Mattha Ice cream •

yes

•

yes

•

yes

•

yes

•

Yes

•

Yes

•

Yes

•

Yes

•

Yes

•

Analysis:

It is clear from the chart that 54% people give preference to parag. 30% people of the sample buy Amul milk. 12% people are taking deva milk. 4% people are using Fresh milk.

Which time of the day do you purchase the milk?

It is clear from the graph THAT:

63% Consumer are buying one liter milk. 31% Consumers are buying 0.5 liter milk.

6% Consumer are buying 0.25 Liter milk.

THANK YOU