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Consumer preference and customer satisfaction
SUMMER TRAINING PROJECT REPORT
SUBMITTED TOWARDS PARTIAL
FULFILLMENT
OF
POST GRADUATE DIPLOMA IN MANAGEMENT
(approved by AICTE , govt. of India)
ACADEMIC SESSION
2010 – 2011
AKGIM Ghaziabad
www.akgim.org
submitted by
shobhit pachauri
roll no 1044
Batch Ist year
External supervisor
Parth sarthi
Designation Marketing manager
Name of company
Address : gokhle marg , jobling road ,lucknow
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
27km stone ,delhi –hapur bypass road, P.O.adhyatmic nagar , Ghaziabad-201009
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Certificate
This is certify that the summer internship project of PGDM ,consumer preference and
satisfaction of parag milk and products is an original work and that this has not been
submitted anywhere in any form . My indebtness to other works /publications has been duly
acknowledged at the relevant places . The project work was carried during 15 th june to 30th
july in PARAG
PREFACE
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As a part course requirement of my MBA program we are asked to undergo two months
summer training in any organization so give as us exposure to practical management and to
get to us familiars with various activities taking place in the organization.
We got any opportunity to undergo our summer training PARAG, lucknow, where we related
the project.
The project has been prepared to deliver, as much information from the very small but
resourceful facts to mast known facts. Hence we have to do survey in the region of lucknow.
All organization face changes in their environment with resultant changes in their market and
their resulted to satisfy their customers. Each organization faces new marketing problem and
opportunity in their existing and potential market.
Decision-makers cope with these challenges in various ways. The marketers being required to
forecast the risk and uncertainly of a situation in their own ways, supported by market
research. However uncertainty cannot be completely dominated in market forecasting.
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Acknowledgement
This project work has not been the product of my own effort only but it bears the imprint of many people. Mr.Parth sarthi who is our marketing manager.
I also thankful to Mr. Scott who helps in our field work.
In completing this project work I want to be special acknowledge to Ms.
Namita nath kumar,Faculty of Marketing who helped every steps where I feel any
difficulty. Besides this also want to thanks my friends who have contributed their
precious time and effort in completing this project.
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CONTENTS
SL. No. SUBJECT PAGE
1. Preface i-I
2. Declaration by student ii-ii
3. Acknowledgement iii-iii
4. Graphs vii-xix
5. Synopsis
6. About the company
7. Introduction
8. Marketing structure
9. Purchase
10. Procurement of the product
11. Marketing department
12. Channel of distribution
13. Competitors of Parag
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14. Rate list
15. Profitability appraisal
16. Market research
17. Sale promotion
18. Quality control
19. Objective of the study
20. Methodology
21. Source of data
22. Analysis
23. Problems
24. Suggestion
25. Conclusion
26. Bibliography
27. Questionnaire
28. Member of co-operative dairies in
U.P.
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REPORT IN SUMMARY BASIS FOR SURVEY CONDUCTS
Awareness about Parag Milk Product
Yes
No
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Yes 97%
No 3%
FAMILY SIZE
2~3 15%
3~5 35%
5~7 30%
>~7 20%
2~3
3~5
5~7
>~7
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Quality of Parag Milk
Purity 60%
Price 20%
Availability 15%
Packaging 5%
Purity
Price
Availaibility
Packaging
s
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Brand of Packet Milk
Parag80%
Mamta7%
Sudha4%
Other9%
Parag
Mamta
Sudha
Other
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Market structure through to Area wise
Brand Goods Satisfactory Need
Improvement
Parag 70% 23% 7%
Sudha 40% 35% 25%
Mamta 72% 28% 0%
Others 48% 41% 11%
Pagrag Sudha Mamta Others0%
10%20%30%40%50%60%70%80%
Goods Satisfactory Need Imporvement
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Improve the Parag Milk & other Products
Price
Packaging
Quality
Any other
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Price 30%
Packaging 15%
Quality 50%
Any other 5%
Daily Consumption of Milk
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½ Litre one Packet 25%
1 Litre Two Packet 37%
1.5 Litre Three Packet 28%
More than 1.5 Litre More
Than 3 Packet
10%
1/2 Litre one Packet
1 Litre Two Packet
1.5 Litre Three Packet
More than 1.5 Litre More than 3 Packet
Rate of Parag Milk
if Reduced with Other
Competitors then Connection May Increase
Yes 80%
No 20%
Yes
No
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Sources of Awareness
Advertisement
Friends
Society
News Paper
Others
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Advertisement65%
Friends 13%
Society 12%
News Paper 6%
Others 4%
Regular Users of Pasteurized Milk
Parag 80%
Others 20%
Parag
Other
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Products of Parag Used Mostly
Except Parag Milk
Curd/Mattha 35%
Butter 45%
Ghee 15%
Pancer 5%
Curd/Mattha
Butter
Ghee
Pancer
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Market Structure Through Areawise
Name of
Product
Lucknow
East
Lucknow
West
Lucknow
North
Lucknow
South
Parag 55% 60% 60% 75%
Mamta 30% 25% 35% 20%
Sudha 5% 4% 1% 1%
Others 10% 11% 4% 4%
0%
20%
40%
60%
80%
100%
Parag Mamta Sudha Other
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Synopsis
Production plant visit
Parag dairy has a huge production plant in lucknow,in which we visited for 5 days and gained
Good knowledge about production .
We saw heavy machinery there which is used to purify the milk.
We saw there heavy containers in which milk are stored .
We learn about the quality control.
We learn about the process of production of different milk items thereSuch as flavored milk , curd , cheese.
We saw the store room of packed milk from where the milk used to
Dispatch daily.
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Questionnaire filing
After getting handsome knowledge about the production plant we sent to the field worki.e. our next task is of questionnaire filling for which we went to the field.
We get the 50 questionnaire each which we has to fill up in three three days .50 questionaire are divided into 2 parts i.e. 25 questionaire contains the questions Which is related to the consumer and remaining 25 are for the storekeepers or agents Of lucknow.
While at the time of questionnaire filling we interacted with the peoples face to face
By which we had to communicate with them which ultimately increase our communication skills
and we get the different views of the people about the dairy products.
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Testing campaign
After the questionnaire filling we get the very interesting work i.e testing campaign.for which we went to the ATM of parag.
Testing campaign is a group task which contains 5 trainee in each group and sent to the different areas of lucknow.
Our group sent to the SRI A.K. OJHA , LDA COLONY,POWER HOUSE. At where ATM of parag is Situation..
We used to check the purity of milk with the help of testing machine .
We went there with one supervisor which helped us in critical situation of testing.
Now we had to go door to door to aware consumers about the test camp of milk is held in their colony for two Days ,so that they came and test the purity of their milk and then compare with the parag milk.
Next day consumers came in good numbers to our campaign and tested their milk,where they find that their milk is not that much pure as much they thinks . then we told them about the quality of parag packed milk which gaves them very much satisfaction.
At testing campaign we learn lots of things and enjoy as well,i.e. how to deal with the consumer when you are awaring the consumer about your product and challenging the consumers for the quality of their presently using product.
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Make new agencies
Now in our fourth task we get pure marketing job i.e. we have to make new agencies
Of parag milk and parag products, For which our group had sent to the southcity,telibag
Which we can say that it is the outer part of lucknow, where the no. of parag agencies are Very less than any other area of lucknow .
Now at this time we have to visit the local
Shopkeeper of that area which does not have the agencies of parag ,and we has to told
them the benefits of taking parag milk agencies .
we visited to almost 5-10 shopkeepers in a day and then we have to submit the daily report to our trainer .
In our this task we make almost 6-7 new agencies which makes the new customer of parag.
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PROCUREMENT AND INPUT DEPARMTMENT(p&I )
In this I get to know about the collection of milk
i.e. how the parag collect surplus milk from farmers and provided that milk to production department .
for this information I met to the Sir VIZENDRA PAL head of P&I department..
Procedure of collection of milk from farmers
the department used to visit to road side village farmer and know about the no. of animals they have and they used to form a society of farmer of minimum 30 members .
for which they fixed some fees for that i.e.
ENTRENCE FEES 5 Rs
SHARE MAONEY 50 Rs
i..e. total 55 Rs to become a member of society
in this farmer get the testing machine and stationary items for the purification of milk i.e.
to measure the fat of milk and other formalities.
The procurement and input department fixes their transport which they called B..M.C.
(bulk milk collection) they used to sent their BMC to the villages to collect the milk and get it
that in parag dairy.
Society payment
The P&I department pay to the society according to the quality of milk .
Standard quality fixed by parag
6.5 fat
9% SNF (solid not fat)
i.e. if the quality of farmers milk meet to the standards then they get good amount otherwise acc. To the quality of milk
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. managerial implications
By our up till research , parag dairy gets the benefit of two types:
Parag aware about the consumer preference Of dairy product i.e. how much the consumers like the parag dairy products
And in testing camp parag tested their milk before the consumers which creates a good image of
Parag and help the parag in their comptitors.
learning outcomes
From our training up till now the very first thing we learn or get the knowledge about the
Production i.e. first five days of training we used to visit in the production plant and learn their that how the milk is prepared for the final use of consumers .
Then after production we get the field work in which we interact with the consumers and
Shopkeepers by we increase our marketing capability.
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About the company
Name of the organization : lucknow producers co-operative
Milk union limited .
Address of the organization : 22,jobling road, lucknow
Established : 1938
Registration : 23rd march 1938
First dairy insepector : N.K.. BHARGAVA
Place of the establishment : initially at charbagh, shifted to
Ganeshganj.
Founder : Mr. Rai. Bhadhur gopal lal pandey
Board of directors : Mr. gopal pandey
Mr. N.C. chaturvedi
Mr. Tej shanker
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Mr. Pushkar Nath Bhatt
Per day production of : Initially 4000 liters
Milk
Area of distribution : initially – bhakshi ka talab
Tewariganj, gosainiganj at present
At present in entire district.
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COMPANY PROFILE
INTRODUCTION:
History of co-operative dairy industry in U.P. dates back to 1971 when “katra co-operative milk
Society was set up in Allahabad . in 1962, PRADESHIK CO-OPERATIVE MILK
FEDERATION was Established , keeping in mind the aims to consumer and also help the
backward classes and and villagers economically.
Pradeshik co-operative dairy federation is a pioneer milk production with the main objective of
Removing the middle man from transaction between producers and consumers . keeping these
Objectives and aim in pradeshik co-operative dairy federation was set up as the state level apex
Body for launching operation flood.
The main objective behind the establishment of milk federation is to encourage small milk
producing farmers to produce more milk and to up grade their social and economic status by
providing them fair prices for their milk products. Unemployment and the prices essential
commodities are going up simultaneously that is way the government has focused its attention on
this scheme, the government provides loan facility to the rural folks to purchase milk giving cattle,
so that they can be curbed. The rural committees are set-up for providing better quality of fodder as
well as artificially to get the better the breeds of cattle in order to raise their productivity. The
veterinary facility is also provided to the formers by these committees.
In the year 1983 PCDF Ltd. started working under Operation Flood I (White Revolution) scheme,
mostly units of Milk Sahakari Board where connected under Operation Flood-II, having The name
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Dugdh Utpadak Sahakari Sangh (DUSS) Ltd. PCDF Ltd. takes royalty of the common brand name
PARAG & all the important policy decisions are taken by Pardeshic Co-operative Dairy federation
Ltd. who monitors to all the DUSS Ltd. i.e. Lucknow, Allahabad & Kanpur etc.
PARAG provides hygienic, nutritious milk &milk products.
In the years 1983 Operation Flood-II scheme was launched, main objectives of the Operation Flood
were the following:
To collect the milk directly from the producers (villager's through societies).
To insure the supply of quality milk collected from the villages which are being sold in major market
area of the cities.
To save the producers (villagers) and the customers from the clutches of middle man.
The milk is collected firstly through the society level then it comes to PCDLF level. Finally it comes
under the state i.e. federation.
There are four regional marketing officers in all over Uttar Pardesh, which are engaged in the
marketing of milk products like, desi ghee, cheese skimmed milk powder, Dairy Whitener and
Butter etc. The officers are located in Varansi, Rampur, Lucknow and Meerut respectively.
I got my practical training at regional marketing office, gokhlemarg, Lucknow, . Almost all the
districts of Uttar Pradesh are covered by R.M.O., Lucknow. The R.M.O. Lucknow distributed deshi
ghee Dairy whitener skimmed milk powder,butter etc.In the district of Maharajganj ,Mau,
Ghorakhpur, Ballia, Shonbhadra, Azamgarh, Jaunpur, Mirzapur, Allahabad, Pratapgarh, Chunnar
and Bhadhoi.
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On some occasions, the RMO Lucknow has been awarded for their significant role in marketing of
the milk products. Recently, Indira Gandhi Priyadarshani award of 1995 was presented to the RMO,
Lucknow for achieving a predetermined sales target.
They are organizing several consumer awareness programs and received overwhelmed response
from the citizen of Lucknow.
A). MARKETING-A PRAGMATIC APPROACHES:
Marketing was invented in Japan around 1650 by the first member of the Mitsui family to settle in
Tokyo as a merchant and to open what might be called the first departmental store. Marketing
department within company first appeared in the early 20th century in the form of marketing
research department. The curtess publishing company in 1911 installed the first marketing research
department (called commercial research at that time) under the direction of Charies C. Parlin
Marketing research department where subsequently established at US Rubber (1916) and swift
company (1917).These department to sell. Sometimes later companies begin to combine marketing
research, advertising, customer services and others miscellaneous marking functions into the
marketing department.
A business and industrial enterprises can achieve with object of maximizing the profits only when it
tries for the satisfaction of these needs answer wants to customers and ends with the satisfaction of
these needs and wants. Thus, a producer must produce what his consumers need, price must be fixes
what his consumer can afford; products must be distributed through the channels which are most
suited to his customers.
Marketing is the business function that identifies the current un fulfillment needs wants defines and
measures their magnitude determinants which target markets the organization can be best served and
decide on the appropriate products, services and programs to serve these markets. Thus the
marketing serves the link between a societies needs and its patters of industrial response.
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MARKETING ORGANIZATION
Marketing organization is an organizational structure which implements the policies of
the enterprise, holds in taking decision regarding production, packing advertisement, sales
promotion, price, brand, trademark and channel of distribution etc, helps in making marketing
activities and helps in implementing the decisions so that predetermined objectives of the enterprise
may be achieved.
Under organizational structure, various departments are established in the enterprise
according to the requirement of marketing activities. These departments may be sales department
advertising department and after sales service department and specifically determined and the duties,
rights and liabilities of the employees these departments are clearly defined and assigned to them.
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ORGANISATIONAL STRUCTURE(UNIT LEVEL)
Here at unit level the organization is leaded by General Manager/In-charge Unit of PCDF Ltd.
Lucknow. All the important decisions are taken by the GM with the approval of Board of Directors
and Head Office .At Unit Level all the administrative work is done by the managerial administration,
All the marketing work is done my the marketing manager, all the procurement work is done by the
manager P&I, All the factory is done through the factory manager. All the financial work is a done
by the manager finance. Under these managers, supervisors and clerks work.
ORGANIZATIONAL STRUCTURE AT THE UNIT LEVEL:
BOARD OF DIRECTORS
CHAIRMAN
General Manager
In-charge In-charge In-charge In-charge In-charge In-charge In-charge
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GENERAL MANAGER:
The office of the General Manager, Marketing is in Lucknow. The GM Marketing controls and gives
Regional Marketing Officer RMO's situated in Uttar Pradesh.
REGIONAL MARKETING MANAGER: (R M O)
The Regional Marketing Office is situated in Lucknow is headed by a Regional Marketing Manager,
who manages the affairs of whole eastern UP. He is assigned by the five persons.
TYPIST:
There is one typist in the office whose work is to type the documents etc.
ACCOUNTANTS:
There is one accountant in the office to keep the financial data update.
SUPERVISORS:
There are three supervisors at the regional marketing office, Lucknow there work is to meet all the
eastern UP and they try to resolve the problem of the stockiest and apprise them about the prevailing
promotional schemes of the Regional Marketing Office.
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SEVERAL UNITS OF DUSS AND PCDF
AGRA
BIJNOUR
BADAUN
ETAWAH
FATEHPUR
FARUKHABAD
FIROJABAD
FATEHPUR
FARUKHABAD
FIROJABAD
ALIGHAH
ALLAHABAD
BALLIA
RAIBARELLY
SAHARANPUR
SITAPUR
SULTANPUR
UNNAO
LUCKNOW
NOIDA (Direct Unit of PCDF)
BIJNOUR
BADAUN
ETAWAH
FATEHPUR
FIROJABAD
BARABANKI
GAZIABAD
GAZIPUR
HARDOI
JAUNOUR
KANPUR
LUCKNOW
MIRZAPUR
MATHURA
MEERUT
MORADABAD MUZAFFARNAGAR
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PURCHASE
The various raw materials that can be used:
Raw Milk
Polythene Packet
Flame
Sulphuric Acid
Citric Acid
Shora
Fuel
Cold water
Milk Container
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PROCUREMENT OF THE PRODUCTS
Has a wide range of products which can be of broadly products a range categorized into two ways.
1. Liquid milk
2. Milk products
1. LIQUID MILKS:
Milk:
It is the best nourishing drink and the easy available source of the fat for carbohydrates,
proteins, vitamins commercial purpose. It is usually to avoid the constituents of milk into the
following.
Fat:
Commercially, it is the most valuable and the variable fraction of the milk. The fat %age in
cattle milk 3.75% and in the Haryanwi breed is 4.8%. Solid not fat (SNF): These solid proteins
contains and not fatty vitamins lactose and minerals like magnetize and calcium etc.
Water:
It is founded 80 to 90% in the milk and serves as the medium containing fat and SNF. Range
of the Parag milk is available in full standard milk (whole milk) containing 4.5 % fat and 8.5% SNF
in 500 ml.
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II) Toned Milk:
Toned Milk contains 3.5% of fat 8.5% SNF in 500 ml.
III) Janta Milk:
Janta milk contains 3.5% fat and 9% SNF in 500 ml.
2) Milk Products:
(a) Butter:
It contains lees than 80% milk for more than 1,5% moisture and highly acuity, it is prepared
exclusively from milk cream of curd of cow or buffalo milk without adding of sale, color or any
preservative and it intended for cooking on the proportion the ghee.
(b) Ghee:
About 43 % of the total quantity of the milk produced in India is manufactured first of ghee is
derived from buffalo milk because it is richer in fat than the cows milk.
(c) Paneer:
In Parag, Paneer is produced by the traditional method in which citric acid is added to the boiled
milk and the milk immediately gets adulterated and water is separated and paneer is obtained it
contains less than 50% fat of more than 60% moisture
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(d) Sweet Curd:
It is also prepared by the traditional method. It is packed in small pots of soil which gives it more
taste.
(e) Mutta:
This product is very much in demand. It is spicy and tasty. The spices are added in it are gwa quality
packed in Ashok Masala.
(f)Others:
Skimmed milk powder, Khoya and other product produced by Parag.
Butter is available in 20 gm., 100gm., 500 gm packs.
Mutta is available in 200 gm poly-pack.
Future Products:
Some new products like coffee powder ready to make ice cream, baby food and milk are drinks in
the testing stages.
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MARKETING DEPARTMENT
The comprehensive and intensive marketing activities at DUSS Ltd Lucknow are controlled by the
marketing manager. All the marketing staff goes every day in the market (morning and evening),
supervise the distribution of milk and milk products, the distribution ids done through milk van in
whole Lucknow city.
The route in-charge or super-visitor duty is to see whether the milk and the milk product are properly
distributed to the agents of Parag in due proper time. To observe the market trends the competitor
activities, the difficulty of the market. They try to penetrate the new market area where the agent of
Parag does not exit. They also supervise whether the rates decided by the company is as it is
executed in the market or not. They also supervise whether the behavior of the transporter is suitable
to the agent as well, as the customers all the activities which is done by the marketing supervisor is
feedback to the manager marketing and GM of the unit.
At present the distribution of the milk and milk product is done through 20 TATA 407 vehicles
which are agreement by the company.
Presently two insulated vans are supplying the milk and the milk products. There are ten retail points
of Parag. The agent of Parag take milk and milk product according to the demand through the
supplier of the Parag van, the distribution is done in the evening and morning. Insulated vans
maintain lowest temperature up to the customers.
In all over the UP Lucknow unit is the first unit which has been awarded MNEMONIC SYMBOL
from first of March 2002 by National Dairy Development Board (State Office, Kanpur).
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While taking mnemonic symbols NDDB came into an agreement with Lucknow unit. In that
agreement, various parameter of Milk Procurement Milk packing and milk selling are taken off,
Lucknow unit supply hygienic, fresh milk through the milk vans. Lucknow is the first unit which is
selling directly to the customer, door to door three loose milk tankers.
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CHANNELS OF DISTRIBUTION
A channel of distribution is a chain through which producer transfers the ownership of his goods and
services to his customer channel o distribution are also known as middle man, agents of distribution
and distribution chain. In fact a channel of distribution is a bridge to cover the gap between the
manufacturer and the customer. The term “Channel of distribution" has been defined by many
authors some of the important definitions are as follows.
Philip Kotler:
Every producer seeks to link together the set of marketing intermediatoties that best fulfill
the firm’s objectives. The set of marketing intermediatoties is called the marketing channel (also
trade channel or channel of distribution).
Wiliiam J Santon:
A channel of distribution (sometimes called a traded channel) for a product is the route
taken by the title of the goods as they move from the producers to the ultimate customers of the
industrial users.
TYPES OF DISTRIBUTION
A) Direct distribution method:
Under the direct distribution method the manufacturer or the producer sales their products.
Under their own management, batadem, any Raymond’s is a example of such direct distribution
methods. They sell their products through the chain of the outlets open by them all over India.
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B) Indirect Distribution Method:
When the manufacturer or the producer seeks the help of the middle man or agents to
market their product .It is also called indirected distribution method. Under this method a producer
or the manufacturer sales his product to the customer through whole seller and retailer.
Manufacturer Wholesaler Retailer_-_-customer
C) Mixed Distribution Method:
Under this mixed distribution method the product are marked with the help of both direct
and indirect distribution method.
PCDF Ltd. regional marketing office Lucknow has adopted the route indirect
distribution method of marketing the products. The management of PCDF Ltd. has vested the power
to appoint distributor and stockiest in the component authority. These distributors/stockiest are
appointed for the marketing of the various milk products. A person who wishes to market the milk
product has to deposit Rs.500 as security money to the PCDF. The PCDF, RMO has appointed some
distributors to bring the milk products to the retailer and the retailers are required to sell the milk
product to the customer on a commission basis. For the distribution of the milk product there are
separate vehicles which are engaged in delivering the milk products to its distributors. The PCDF,
RMO, supplies the milk products to Renukut, Bhabohi, Mirzaur, Ghazipur, Ballia and some other
eastern parts of Uatter Pardesh.
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COMPETITIORS OF PARAG
Butter, Deshi Ghee and Skimmed milk powder are the main products
distributed through RMO, Lucknow. These products are marketed in and
around Lucknow.
In case of butter, the chief rival brand of Parag is Amul it is really a good
product but due to the normally in its supply in Lucknow it has not been
able to retain its hold in the market. Parag butter is doing well and its market
share is parallel to that of Amul in Lucknow.
In case of Skimmed milk powder, some multinational companies have a
minor presence in the markets all over India so Parag Skimmed milk powder
could not do and is not doing well in the market and is struggling to survive.
Same thing is happening with its product Dairy whitener. It has no way
multinational companies and other brands PCDF are launching its baby food
in a highly competitive market.
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SNF/ FAT OF MILK PRODUCTS LIST
S.NO. PRODUCT NAME FAT ISNF 1 MOISTURE
1 Parag Full Cream Milk (Standard) 6% / 9%
2 Parag Toned Milk 3.5%/ 8.5%
3 Parag Janta Milk 0.5% / 8.7%
4 Parag Butter 20 gm. 80% to 85%
5 Parag Butter 100 gm. 80% to 85%
6 Parag Butter 500 gm. 80% to 85%
7 Parag Ghee (15 ltr. Pack) 99.9% / 1% Moist.
8 Parag Ghee (1 lit in packet) 99.9% / 1% Moist.
9 Parag Ghee (Y2 ltr. Packet) 99.9% / 1% Moist.
10 Parag Ghee (200 ml. Pack) 99.9% / 1% Moist.
11 Parag Paneer (100/500 gm. Pack) -
12 Parag Mattha (200 ml. Packet) -
13 Parag Dahi (200 gm. Kullhar) -
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PROFITABILITY APPRAISAL
Company sales performance has been quite good. It has been all most constant over the five
years period. i.e. from 1992-93 to 1996-97. The sales received a grade in year 1995-96; it
was reduced to Rs .13030 lakh from Rs. 224.45 lakh. According to me there were many
reasons for this in sales rapid declaration such political instability separate agitation for the as
statehood for Uttarakhand causing reduction in the procurement of milk products.
In case of profit-loss performance, I went through the book and balance sheet of RMO over
the five years. I came to know a shocking loss in year 1992-93. When I analyzed the books
balance sheet I found that in 1991-92, in direct the RMO was in direct need of working year
capital 1992-93, of they paid in Rs.3,51,000 interest on loan and again Rs. 4,27,000 in the as
year 1993-94. In the year 1993-94 this massive payment towards the interest a let the record
loss for two consecutive years. And after it the company got relief from the loan, registered
three increasing profits for the consecutive years i.e. 1994-95, 1995-96 and 1996-97.
MARKET RESEARCH
Besides, internal accounting information and marketing intelligence, marketing
executives often need focused studies of specific themselves problems normally and
opportunities test. The managers himself do not have the skill or time to obtain
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information. They need to consumer formal marketing research.
Marketing research may be defined as collection, analysis and interpretation of
relevant data to help a marketing manager in, taking sound marketing decisions. It is
scientific method of solving the marketing problems; It includes all types of research,
in the field of marketing such as market analysis, sales promotion, research and
advertisement research, etc. It may also be concluded that marketing research is the
systematic collection, recording, analysis, interpretation and reporting of necessary
information and data about existing potential consumers. Marketing method channels
of distribution, advertisement, methods of sales promotion and competitors. Object of
marketing research is to prepare and amend the marketing policies, strategies and
programmer in such manner that they provide maximum satisfaction to the
consumers.
Two marketing supervisors are there at RMO Lucknow who frequently go to the
managers of eastern U. P. and collect the market information’s that helps, the
managers in arriving at the decision.
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SALES PROMOTION
The sales promotion which includes all those activities, both the
distributors the goods and consumers towards and services of the
enterprise, so that the sale of enterprise may increase. Advertising
publicity and personal selling are excluded in sales promotion. The sales
promotion is resorted to, when the enterprise is in a recession its sales
are going down profit is dwindling etc. thus sales promotion is, in fact
not a regular activity.
Objects of Sales Promotion:
Some important objects of Sales Promotion are:
(i) To introduce a new product in to the market and to attract new
consumers to buy the product.
(ii) To maintain the present consumers and to encourage them to buy
more.
(iii) To minimize the reduction in sales, during off seasons.
(iv) To face the competition successfully.
(v) To provide the goods and services of high qualities to the consumers
at reasonable price.
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Tools of Sales Promotion:
(A) Consumer Promotion Method:
1. Distribution of free samples
2. Discount coupons
3. Free gift
4. Reduction in prices
5. Special prizes
6. Cheap bargains
7. Demonstration
8. Money back Guarantee
9. Decoration and display at the shop
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(B) Dealers Promotion Method:
Advertisement allowance or advertisement materials
1. Incentives to salesman
2. Quantity discount
3. Suitable credit policy
4. Meetings and seminars
5. Commission
6. Free gifts
7. Training
Tools of Sales Promotion in the Context of PCDF, RMO:
Tools of sales promotion adopted by PCDF, RMO are as follows:
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Advertisement Materials:
In the form of brochure, oil paintings, wall hangings, stickers etc. are
provided to the agents at their stalls.
The PCDF, RMO:
It provides discount to its distributors. On such scheme floating currently
is a follows: 100 grams of butter free on achieving a sale target of three
kilogram
3. Suitable Credit Policy:
The PCDF, RMO has developed a suitable credit policy, for its loyal
distributors, whose performance in the sale of products has been impressive.
This facility is provided, only for a certain time period.
4. Meetings and Seminars:
The field officials of PCDF, RMO frequently survey the market and get in
touch with the distributors/Retailers, note-down their complaints, if any and
try their best to minimize it, to the extend possible.
5. For the Consumers:
Consumer's promotion is achieved by providing them with better quality
products at- reasonable price. Some times price discount is also given to the
consumers.
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QUALITY CONTROL
Quality control is an essential and most important department for any manufacturer. Today every
organization has efficient Quality Control system.
Quality Control is dependent upon only practical (Survey, Analysis and Right Procedure) work.
In PCDF Ltd. Lucknow at reception point of milk form different societies (Producers & Villagers).
Milk is collected and basic test are carried out quickly and after cleaning it is send for further
processing.
Finally' after pasteurization three types of milk is obtained that is Standard Milk, Toted Milk &
Janta Milk.
Milk passes out through some stages
Organo Leptic Test:
It passes through three stages. This is a first type of testing milk.
Seeing
Smell
Tasting
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(A) Clot on Boiling Test:
After testing, checking is done between good and poor Milk
Milk.
Fomiline Test
Soda Test
Urea Test
Sugar Test
Caustic Test
These testing are based open clot on boiling test.
(B) Standard Plate Count (SPC) Test:
In this type of testing not more than 25,000 Bacteria's should be present in one ml.
of milk.
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(C) Correct Lactometer Reading (CLS) Test:
This type of testing, is done to find out quantity of milk.
(D) Methyl Blue Reduction Test (MBRT) Test:
MBRT test is done for milk pasteurization. Heating temperature should be 380 e to
800.
After sterilization number of Vital Test are Executed:
The important Test and i.e. Phosphorous most test and Methyl Reduction Test.
1. Phosphorous Test is used to confirm the pasteurization of milk.
2. Reduction for (Methyl Blue is Test) MBRT used maintaining appropriate quality
of milk in every half an hour. It is done with full responsibility and care so that the
offered product to the consumers could be reached with appropriate Calorific
Value.
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MILK PURCHASING SYSTEM THROUGH VILLAGE SOCIETY
CHAIRMAN
01MEMBERS
0000000000000000000000000000
1SECRETARY
0.
Total Number of Person = 30 (All Members)
One person is Chairman
Twenty Eight person are Members
One person is Secretary
Village society Secretary's responsibility is to collect the milk form village and her
sources and hence brought to the Dugdh Sangh Level.
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OBJECTIVE OF THE STUDY
There exists some reason and purpose behind any activity. The basic purpose of this study
is to fill the gap between theoretical and practical aspects of business management. This
study offers me an opportunity to develop the required skills and in-sight for making the
best use of experience and judgment in practical life. This study also helps me to
understand that how the managers take decisions on the intricate problems like, marketing
and how they overcome those difficulties in day-to-day administration.
So, the project report looks into everything, which must be acquainted to me. It provides
various things which helps, in determining real world of winner and sharpening the
analytical skills.
OBJECTIVES
1. To Serve to the Consumers and farmers.
2. To give real value of milk to the farmers.
3. To know the Consumer perception behavior towards the milk Products of
PARAG.
4. Quality and Availability should be better than any other milk products.
5. To give best quality to consumers.
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METHODOLOGY
Research Design Descriptive
Mixed Sampling (First of all stratification was done In order "to find two
homogenous groups i.e., Agents of PARAG and the consumers. Further for the
agent’s area sampling it was done and for the consumers simple random sampling
was done).
Instrument used Questionnaire (Open and closed question)
Sampling Unit Agents / Costumers
Sample Size Agents - 230
Costumers - 300
Data Collection
Primary Data Questionnaire and Personal Interview
Secondary Data By Previous Annual Reports
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SOURCES OF DATA
I compiled the data in two ways:
1. Primary data
2. Secondary data
Those data, which are collected in original for the purpose of statistical research by a
researcher or an agency, are called primary data.
Primary data:
For the collection of primary data, I met the person in charge of affairs of R. M. 0., Lucknow
personally and discussed the matters with them. I also visited the market to get first hand
experience to practical marketing.
Secondary data:
Secondary data are those data, which are previously collected by others for their purpose of
Research, Records, Balance sheet are the example of such data.
The actuality completes the essential formality of my Master of Business Administration
(M.B.A.).
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ANALYSISCompetition:
In Lucknow various competition are Sudha, Amul & Parag and private milk produces.
Amongst all these Amul is strongest competitor in field of Butter while Amul & PARAG sell
Ghee quantity but in the field of packed milk PARAG is leading brand. If brands like Sudha
& Parag are not taken seriously definitely after few span of time they can take much share of
PARAG.
The supply of private milk producers is not consistent. Most of them vanish in the
summers. But PARAG & Sudha can complete future.
S.N. COMPETITIVE PARAG AMUL SUDHA OTHERS
FACTOR
1 Quality A A B C
2 Price B A A A
3 Delivery A C B C
Performance
4 Sales promotion A A B C
Total 68% 20% 10% 7%
".
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PROBLEMSDuring the course of Practical Training, I felt that there were many deficiencies faced by us,
which have been elaborated as follows:
1. The quantity of parag milk fluctuates during some special condition like during feeder
plants etc. and that may lead inferior feeling to wards new customers.
2. Retailers were not satisfied with the consumption assigned to them more and they demand
for it and this mush be resolved as may cause dissatisfaction among them.
3. Supervisor employed in the RMO, Lucknow may not be able to control whole of eastern
D.P.
4. Better working conditions and facilities are necessary to increase the efficiency of
workers. The building of RMO is in a dilapidated condition and the atmosphere of the office
is not conductive the speedy and good work, causing inefficiency and lack of devotion
among the employees.
5. Advertisement contributes significantly in the marketing of products. Parag's competitor
Amul is also a co-operative society and by the means of innovative advertisement it has
captured large market share. On the coritrary, Parag's advertisement is weak because they are
still strategy sticking to the antiquated and conventional advertisement methods. Due to its
Parag's sales is hovering around a certain quantity.
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6. The efficiency of the workers can be increased through the monetary and non-monetary
incentives and motivation only can be helpful in achieving a pre-determined target. The
regional Marketing Manager told incentive is provided in this office.
7. The process of sales promotion is slack. There is no elasticity in the method of sales
promotion adopted by the RMO. These encourage the consumers to buy more.
8. No precautionary measure has been taken to protect the office from fire, theft, termites,
etc.
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Recommendations
After doing the research of 100 consumers and 100 retailers in Rampur City for the study
on “Study Of Parag Milk In Rampur City”. Researcher has put forth some valuable suggestions,
which would help the Dugdh Sangh in increasing the sale and profit for the Dugdh Sangh.
Marketing strategy for the scope of expansion of polypack market should taken into
account the following:
Product awareness strategy: During the research work the researcher comes to know that
Consumer is not fully aware about polypacking. So the first major task that Moradabad Dugdh
Sangh must do is to make strategy to aware the consumers about polypacking as it is infection less,
easy to supply and strong, less expansive and attractive looking.
Distribution strategy: Distribution of milk should be more through retailers or direct from the
company. Company adopts a new distribution channel as home delivery because the time is most
important.
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Promotional strategy:
Pulling strategy – The Company should use sales promotion method to attract the consumers like
off discount coupons, poster of pleasing personality and creative advertisement of Parag should be
given on television and radio. Advertising plays an important role in creating image and top of
mind awareness.
Pushing strategy – As retailer play an important role in promoting the products to the end users. So
schemes and prize should be given as incentives for achieving high performance. This will help in
providing the required push for the product. Special display of Parag at outlets should be done to
attract the consumer to the final purchasing decisions are made at the point of purchase.
The retailers are not satisfied with the commission providing by Parag Company so company must
increase commission on sale.
Pricing strategy: Dugdh Sangh should make a strategy to analyze the consumers capability and then set
accordingly prices. Dugdh Sangh should make its products keeping in the mind of consumer’s wants and demand
because in today’s marketing concept “Consumer is a king”. Marketing of products should be consumer oriented
i.e. marketing of goods and services according to the needs and wants of consumers.
The management of the company should visit the market on a periodical base to give the direct
feed back on the market equation.The company must provide training and refrigerator to their good
retailers.
Facility of replacement of milk is very time consuming so company must provide an inspector who
has full power to replace the milk at the retail point.
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CONCLUSION
During the preparation of my project report, I took into account many important factors
regarding the marketing strategies of PCDF Ltd., and going by my observation and
experience. I can infer that PCDF is a consumer - oriented and it provides better quality
goods at cheaper prices to its consumer. Special care is taken of products which are down or
increased in extreme circumstances only. The employees of the PCDF are united and devoted
to achieve the pre-determined goal of the organization. There seems no amicable atmosphere.
My training was focused only on the milk products. And I gathered that the delivery of milk
products from the depot to the stockiest was uninterrupted and timely reducing the possibility
of disputes among them.
I perceive the Pradeshik Co-operative Dairy Federation, RMO, Lucknow will diversity into
marketing of some milk products in future, and by adoption of new marketing tools it will
make its price structure effective and quality of products better in order to provide maximum
satisfaction to the consumers. Regional Marketing Office (RMO), Lucknow has been
conferred with many awards, which are sure sign of its bright future; I also observed that
unnecessary expenditure has been curbed to a great extent, which is a direct result of
effective managerial efficiency. Consequently profit has been shored up unexpectedly of
which has been furnished in its project report earlier.
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BIBLIOGRAPHY
1. Marketing Management Philip Kotler
2. Principles of Management Sherlkar and Sherelekar
3. Marketing Management J. C. Vashmey
4. Management Account S. P. Gupta
5. Annual Report - DUSS.
6. Dugdha Sahakarita (Monthly Magazine) - PCDF.
7. Amar Ujala
8. Dainik Jagran
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DUGDH UTPADAN SAHKARI SANGH, LUCKNOW
Dear Customer, We are the leading producers of fresh milk and milk products in the state.
Serving to you since the long time. Our main emphasis in on 'Consumer's Delight'
maintained through high quality and Prompt Service.. "\
Hygienic milk production is our main aim in continuance with our high quality production
standards. We would like you to help us in serving you better through your invaluable
suggestions
. annexuers
Survey conducted for milk consumers
1. Name of consumer:2. Address of consumers:3. Contact number:4. Total family number:5. Age of member:
a)0-5 ( )b) 5-15 ( )c) 15 -30 ( )d)30-above ( )
6. Consumption per day:a) Loose milk ( )b) Parag ( )c) Amul ( )d) Amrit dhara ( )
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7. Do you change from one brand to another?a. Yes ( )b. No ( )
8. Your overall experience with parag?a. Excellence ( )b. Good ( )c. Fair ( )d. Poor ( )
9. From where you get the parag?a. Home delivery ( )b. Shop ( )
10. Why do you go for it ?a. Quality ( )b. Price ( )c. Availability ( ) d. sOther ( )
Any suggestions for parag?
……………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
Date: signature and name of surveyor:
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RMO'S CHANNEL OF DISTRIBUTION
MANUFACTURES
RMO
DISTRIBUTORS
RETAILER
CUSTOMERS
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