Sales, marketing and branding activities are essential for any brand to grow in the

market. This is particularly true in the case of fast moving consumer goods. This
report attempts to identify the factors affecting Sales, marketing and branding
activities of Pride of Cows.
The main idea of this project was to increase the awareness amongst the high income
group customers and during the process increasing the number of subscription that are
with the brand Pride of Cows. This project was Brand Promotion and sales which are
pushed due to promotion and awareness.
The sample constituted various individuals who partook in the sampling exercise of
Pride of Cows a brand belong to Parag Milk Food ltd. The study used various research
methodologies to find how to effectively increase the brand awareness and market
share of Pride of Cows.
Thus we see in this report the companies ideology in promoting this brand, effort we
put into the project and results that came from the project.

Brand awareness is the extent to which a brand is recognized by potential customers,

and is correctly associated with a particular product. Expressed usually as a
percentage of the target market, brand awareness is the primary goal of advertising in
the early months or years of a product's introduction.

Brand awareness is related to the functions of brand identities in consumers memory

and can be reflected by how well the consumers can identify the brand under various
conditions. Brand recognition refers to the ability of the consumers to correctly
differentiate the brand they previously have been exposed to. This does not
necessarily require that the consumers identify the brand name. Instead, it often means
that consumers can response to a certain brand after viewing its visual packaging
images. Brand recall refers to the ability of the consumers to correctly generate and
retrieve the brand in their memory.

A brand name that is well known to the great majority of households is also called
a household name.

Along with Brand Awareness one important marketing function that comes in picture
is Brand Promotion is one of the market mix elements or features, and a term used
frequently in marketing. Promotion refers to raising customer awareness of a product
or brand, generating sales, and creating brand loyalty. Some important tools of
Promotion are personal selling, advertising, sales promotion, direct marketing, and
publicity. A promotional plan can have a wide range of objectives, including: sales
increases, new product acceptance, creation of brand equity, positioning, competitive
retaliations, or creation of a corporate image. Fundamentally, there are three basic
objectives of promotion. These are:

1.

To present information to consumers as well as others.

2.

To increase demand.

3.

To differentiate a product.

There are different ways to promote a product in different areas of media. Promoters
use internet advertisement, special events, endorsements, and newspapers to advertise
their product. Many times with the purchase of a product there is an incentive like
discounts (i.e., coupons), free items, or a contest. This method is used to increase the
sales of a given product. The term "promotion" is usually an "in" expression used
internally by the marketing company, but not normally to the public or the market phrases like "special offer are more common.

Parag Milk Foods is an ISO 9000 and AGMARK certified company, committed to
international standards of product quality. There product portfolio includes milk,
skimmed milk powder, whole milk powder, ghee, processed cheese, butter, dahi,
proprietary foods like dairy whitener and gulabjamun mix powder under the brand
names of Go and Govardhan, all made from 100 percent fresh cows milk.
The company came up with a new product, Pride of Cows, which is a first-of-itskind, superior farm-to-home milk, from Indias most modern dairy farm, with a
production capacity of 25,000 liters a day.
The company aims at targeting the upper class and upper middle class and therefore
came with this premium priced product which ensures best of the health because of
the quality they serve. The milk is free from machinery processing and thats the USP
of the product.
Pride of Cows (POC) is in its introductory stage and therefore Brand awareness and
Promotion of POC is what the company is focusing on.

INTRODUCTION OF DAIRY INDUSTRY IN INDIA

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.
Indias 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 litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and
Japans $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 33% per annum to around Rs.43,500crores by year 2005. 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 2005, the value of Indian dairy
produce is expected to be Rs 10,00,000 million. Presently the market is valued at
around Rs7,00,000mn

Background:
India with 134mn cows and 125mn buffaloes has the largest population of cattle
in the world. Total cattle population in the country as on October'00 stood at 313mn.
More than fifty percent of the buffaloes and twenty percent of the cattle in the world
are found in India and most of these are milch cows and milch buffaloes.
Indian dairy sector contributes the large share in agricultural gross domestic products.
Presently there are around 70,000 village dairy cooperatives across the country. The
co-operative societies are federated into 170 district milk producers unions, which is
turn has 22-state cooperative dairy federation. Milk production gives employment to
more than 72mn dairy farmers. In terms of total production, India is the leading
producer of milk in the world followed by USA. The milk production in 1999-00 is
estimated at 78mn MT as compared to 74.5mn MT in the previous year. This
production is expected to increase to 81mn MT by 2000-01. Of this total produce of
78mn cows' milk constitute 36mn MT while rest is from other cattle.
While world milk production declined by 2 per cent in the last three years, according
to FAO estimates, Indian production has increased by 4 per cent. The milk production
in India accounts for more than 13% of the total world output and 57% 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 milching.

Inadequate availability of fodder in all seasons.

Unavailability of veterinary health services.

Milk Yield comparison

Country

Milk Yield (Kgs per

year)

USA

7002

UK

5417

Canada

5348

New Zealand

2976

Pakistan

1052

India

795

World (Average)

2021

Consumer Habits and Practices:

Milk has been an integral part of Indian food for centuries. The per capita availability
of milk in India has grown from 172 gm per person per day in 1972 to 182gm in 1992
and 203 gm in 1998-99.This is expected to increase to 212gms for 1999-00. However
a large part of the population cannot afford milk. At this per capita consumption it is
below the world average of 285 gm and even less than 220 gm recommended by the
Nutritional Advisory Committee of the Indian Council of Medical Research.
There are regional disparities in production and consumption also. The per capita
availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93
gm per person per day. This disparity is due to concentration of milk production in
some pockets and high cost of transportation. Also the output of milk in cereal
growing areas is much higher than elsewhere which can be attributed to abundant
6

availability of fodder, crop residues, etc which have a high food value for milch
animals.
In India about 46 per cent of the total milk produced is consumed in liquid form and
47 per cent is converted into traditional products like cottage butter, ghee, paneer,
khoya, curd, malai, etc. Only 7 per cent of the milk goes into the production of
western products like milk powders, processed butter and processed cheese. The
remaining 54% is utilized for conversion to milk products. Among the milk products
manufactured by the organized sector some of the prominent ones are ghee, butter,
cheese, ice creams, milk powders, malted milk food, condensed milk infants foods
etc. Of these ghee alone accounts for 85%.
It is estimated that around 20% of the total milk produced in the country is consumed
at producer-household level and remaining is marketed through various cooperatives,
private dairies and vendors. Also of the total produce more than 50% is procured by
cooperatives and other private dairies.
While for cooperatives of the total milk procured 60% is consumed in fluid form and
rest is used for manufacturing processed value added dairy products; for private
dairies only 45% is marketed in fluid form and rest is processed into value added
dairy products like ghee, makhan etc.
Still, several consumers in urban areas prefer to buy loose milk from vendors due to
the strong perception that loose milk is fresh. Also, the current level of processing and
packaging capacity limits the availability of packaged milk.
The preferred dairy animal in India is buffalo unlike the majority of the world
market, which is dominated by cow milk. As high as 98% of milk is produced in rural
India, which caters to 72% of the total population, whereas the urban sector with 28%
population consumes 56% of total milk produced. Even in urban India, as high as
83% of the consumed milk comes from the unorganized traditional sector.
Presently only 12% of the milk market is represented by packaged and branded
pasteurized milk, valued at about Rs. 8,000 crores. Quality of milk sold by
unorganized sector however is inconsistent and so is the price across the season in

local areas. Also these vendors add water and caustic soda, which makes the milk
unhygienic.

India's dairy market is multi-layered. It's shaped like a pyramid with the base
made up of a vast market for low-cost milk. The bulk of the demand for milk is
among the poor in urban areas whose individual requirement is small, maybe a
glassful for use as whitener for their tea and coffee. Nevertheless, it adds up to a
sizable volume - millions of litres per day. In the major cities lies an immense growth
potential for the modern sector. Presently, barely 778 out of 3,700 cities and towns are
served by its milk distribution network, dispensing hygienically packed wholesome,
quality pasteurized milk. According to one estimate, the packed milk segment would
double in the next five years, giving both strength and volume to the modern sector.
The narrow tip at the top is a small but affluent market for western type milk
products.
Growing Volumes:
The effective milk market is largely confined to urban areas, inhabited by over
25 per cent of the country's population. An estimated 50 per cent of the total milk
produced is consumed here. By the end of the twentieth century, the urban population
is expected toincrease by more than 100 million to touch 364 million in 2000 a
growth of about 40 per cent. The expected rise in urban population would be a boon
to Indian dairying. Presently, the organized sector both cooperative and private and
the traditional sector cater to this market.
The consumer access has become easier with the information revolution. The
number of households with TV has increased from 23 million in 1989 to 45 million in
1995. About 34 per cent of these households in urban India have access to satellite
television channel.

Potential for further grow:

Of the three A's of marketing - availability, acceptability and affordability, Indian
dairying 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.
Emerging Dairy Markets:

Food service institutional market: It is growing at double the rate of

consumer market

Ingredients market: A boom is forecast in the market of dairy products used

as raw material in pharmaceutical and allied industries

Parlour market: The increasing away-from-home consumption trend opens

new vistas for ready-to-serve dairy products which would ride piggyback on
the fast food revolution sweeping the urban India.
India, with her sizable dairy industry growing rapidly and on the path of
modernization, would have a place in the sun of prosperity for many decades
to come. The one index to the statement is the fact that the projected total milk
output over the next 15 years (1995-2010) would exceed 1457.6 million
tonnes which is twice the total production of the past 15 years!

Penetration of milk products:

Western table spreads such as butter, margarine and jams are not very popular in
India. All India penetration of butter/ margarine is only 4%. This is also largely
represented by urban areas, where penetration is higher at 9%. In rural areas, butter/
margarine have penetrated in 2.1% of households only. The use of these products in
the large metros is higher, with penetration at 15%.
Penetration of cheese is almost nil in rural areas and negligible in the urban areas. Per
capita consumption even among the cheese-consuming households is a poor 2.4kg pa
as compared to over 20kg in USA. The lower penetration is due to peculiar food
habits, relatively expensive products and also non-availability in many parts of the
country. Butter, margarine and cheese products are mainly manufactured by organized
sector.
Similarly, penetration of ghee is highest in medium sized towns at 37.2% compared to
31.7% in all urban areas and 21.3% in all rural areas. The all India penetration of ghee
is 24.1%. In relative terms, penetration of ghee is significantly higher in North and
West, which are milk surplus regions. North accounts for 57% of ghee consumption
and West for 23%, South & East together account for the balance 20%. A large part of
ghee is made at home and by small/ cottage industry
Milk powder and condensed milk have not been able to garner any significant
consumer acceptance in India as indicated by a very low 4.7% penetration. The
penetration is higher at 8.1% in urban areas and lower at 3.5% in rural areas. Within
urban areas, it is relatively higher in medium sized towns at 8.5% compared to 7.7%
in large metros.

Market Size and Growth:

Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT
valued at Rs470bn. The market is currently growing at round 4% pa in volume terms.
The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan,
10

Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The

manufacturing of milk products is concentrated in these milk surplus States. The top 6
states viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and
Gujarat together account for 58% of national production.
Milk production grew by a mere 1% between 1947 and 1970. Since the early 70's,
under Operation Flood, production growth increased significantly averaging over 5%
pa.
About 75% of milk is consumed at the household level which is not a part of
commercial dairy industry. Loose milk has a larger market in India as it is perceived
to be fresh by most consumers. In reality however, it poses a higher risk of
adulteration and contamination.
The production of milk products, i.e. milk products including infant milk food, malted
food, condensed milk & cheese stood at 3.07 lakh MT in 1999. Production of milk
powder including infant milk-food has risen to 2.25 lakh MT in 1999, whereas that of
malted food is at 65000 MT. Cheese and condensed milk production stands at 5000
and 11000 MT respectively in the same year.

Major Players:

The packaged milk segment is dominated by the dairy cooperatives. Gujarat Cooperative 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, Dairy
Specialties, etc. Amrut Industries, once a leading player in the sector has turned
bankrupt and is facing liquidation.

11

INTRODUCTION OF PARAG MILK FOOD PRIVATE LIMITED

Established in the year 1992, Parag Milk Foods Pvt. Ltd., has created a niche for
themselves in the domain of processing and exporting milk products. This
organization is located in the lush green village called Manchar in Maharashtra (60
km from Pune). They are the ones owning the largest cow farm in India, and are also
counted amongst the Asia's largest cheese plant. The capacity is of around 1,000,000
litres per day.
It is an ISO 9000 and AGMARK certified company, and their products sell under the
brand name of "Gowardhan" and Go. There are three production centres named
Dairy plant, Bhagyalaxmi dairy farm and Cheese plant, but they are planning to add
two more production centres: one in Palamaner, on the outskirts of Bangalore and
another in Srirampur, Ahmednagar each with a milk processing capacity of 500,000
litres a day. The organization is also registered with US FDA and this is the only
brand in India to have obtained the ISO 15161 certification from New Zealand.
Owing to the quality of their products, these are demanded in areas such as North
Africa, South/West Africa, Middle East and South East Asia. The list of their clients
includes some of the renowned names such as BEL, Morocco and Baskin Robins.

Basic Information:
Nature of Business:

Manufacturer

Exporter

Wholesaler

Retailer

12

Year of Establishment:
1992

Product Portfolio:
They are offering their clients a wide range of milk products. All their products are
processed under hygienic conditions, so that it is safe for our clients to consume. As
the whole process is mechanized, it keeps the products safe from the germs and
contaminations spreading by hands. As a result of the unmatched quality of our
products, these are demanded in various world famous companies in various regions
of the world.
The range includes the following products:

Pride of Cows

Gowardhan Gold

Gowardhan Fresh

Gowrdhan Premium Ghee

Gowardhan Butter

Gowardhan Processed Cheese

Gowardhan Mozzarella Cheese

Gowardhan Dairy Whitener

GowardhanGulabJamun Mix

Gowardhan Fresh 'n' Thick Dahi

Gowardhan Trim Dahi

GowardhanChass

Cheddar Cheese

13

Cheddar Cheese Powder

Cheese Slices-With UHT

Creamy Cheese Spread

Mozzarella Pizza Topping

Pizza Cheese

Processed Cheese

Cheese Wedges

Some of the features of our products are as follows:

Low fat content

Longer preserving time

Smooth texture

Easily spreadable

Fast melting capacity

Free from contamination

Fresh

Nutritious

Employees of Gowardhan

Gowardhan has a staff of more than 1200 employees. The company also has expert
consultants for training and also sends its employees abroad for training. Gowardhan
also has tie-ups with Institutes of International repute like National Dairy Research
Institute, Karnal and Allahabad Agriculture University for recruitment of technical
officers as well as recruitment agencies for management graduates. When asked what
the programs in place to benefit employees, Mr. Shah said, Automation trainings,

14

employeesself-improvements, talent management, multi skilling, and succession

planning are some of the programs in place to benefit employees.

Well-designed infrastructure:

Parag Milk Foods gives immense importance to the quality and innovation and it has
made huge investments in technology and infrastructure. The companys dairy and
cow farm at Manchar as well as Palamner is expanding fast and catering to the large
number of customers in India.

Dairy plant at Manchar:

ParagMilk processes a wide range of products at this ultra-modern dairy. The plant
churns out 1, 000, 000 litres of milk per day. The company also maintains strict nohuman-contact through the entire manufacturing process. The dairy plant is fully
automated and is equipped with best European technology.

Bhagyalaxmi dairy farm:

The Bhagyalaxmi dairy farm boasts of being Indias largest cow farm. It is spread
over 35 acres and houses upto 3,500 cows. It is equipped with Indias first rotary
parlor which has mechanized whole milking process. The facility follows nurturing,
specialized farming and a milking program that makes sure that the milk obtained is
of best quality.

15

Cheese plant, Manchar:

The cheese plant with the production capacity of 40MT is one of the only 2 units in
Asia with UHT technology. The equipments are imported from Germany, pioneers in
cheese processing equipment. This increases the shelf-life in tropical countries like
India

16

PRIDE OF COW

Generally milk from other companies comes to home after two to three days and also
comes with many hand changes and added preservatives. There is a chance of
adulteration in milk and can be injurious to health. To overcome of this problem,
Parag Milk Foods Pvt ltd. came up with the new product called Pride of Cows- the
purest form of the milk.

Figure: Bhagyalakshmi Dairy Farm

Pride of cows is the purest form of milk available in India. It is the Farm to Home
concept milk. Company owns the 40 acre farm in Manchar near Pune on Pune-Nashik
road called Bhagyalakshmi Dairy Farm. The farm is geographically located on the

17

hilly area between river Bheema and Western Ghats where atmosphere is suitable for
the cows. Its the Indias or probably the worlds most advanced dairy farm.

Figure 2 & 3: State-of-the-art rotary parlor and Mechanized bottling plant

Farm is having more than 3500 cows, from which more than 2000 cows are eligible
for the milking purpose. These cows are of specially bred Dutch Holsteins and
Friesians which are known for their best quality of milk. Milking is done through the
State-of-the art Rotary Parlor. It is also imported from Germany. Bottling and
packaging is also done through the machines and no human touch is involved during
any process from milking to bottling.
Pride of Cows milk contains (per 100 ml) 112 mg of calcium (one-tenth of the daily
recommended allowance), 3.2 grams of protein, and 3.5 grams of fat (min.). In
addition there are 15 other essential nutrients. It is an important component of a
balanced diet and is considered one of the worlds most complete foods. Pride of
Cows is unparalleled in being one of the only ready-to-drink foods that keeps you
nourished all day long. It is a highly nutritious, safe and natural food that revitalizes
and is good for health and well-being.

18

The farm is an ideal place as the residence of the cows. It is of stress free
environment. Hygienic and airy barns are provided to control temperature with the
help of mist sprays and fans. Each cow has her own bed which is a soft, rubber mat to
sleep on. All genre of music is played to keep the cows happy and more productive.
The cows are given the specially planned meals called Total Meal Ration (TMR).
TMR is natural forage which is grown on the specially contracted farm lands. This is
a mix of foods, vitamins and minerals designed to give the cows a wholesome diet
and keep them healthy and happy. Some of the foods given to the cows are green
maze, soya, bran, corn silage, alfalfa etc.
Cows are regularly watched and monitored for any abnormality in the health and
behavior of the cow. Electronic microphones are tagged to each cow which records
data from cows history to its medical condition and health data. The sample is
analyzed from each cow. If the quality is not matched the cow is isolated and not
being milked till its health recovery done.

Benefits of POC

About 90% of the milk and milk products consumed in the world is cows milk. Cow
milk essentially contains three things
SNF
Fat
Water
SNF means Solids Not Fat in the milk. These solids are essentially the good part of
the milk which is
Proteins
Vitamins
Minerals
19

 Calcium
Caseins
Carbohydrates

These elements are what give the quality nutrition that growing children need.
Cows milk like any other milk contains Fat that is used to make Ghee, Butter etc.
The fat contains both good cholesterol and bad cholesterol.
Water is what holds the SNF as well as the Fat element in either soluble form or
insoluble form and constitutes a major portion of the milk. When we heat milk water
is what evaporates.
Bones and Joints: The calcium present in the cows milk is a good source of making
the joints and bones stronger and growing children need this the maximum as well
this prevents old age diseases like Osteoporosis Head Ache and Migraines: Cow milk
helps to get rid of Migraine and persistent head ache.
PMS: It is a great natural source of easing PMS.
Preventing Obesity: The Calcium is a great source of preventing mid section obesity
among children. The calcium helps in oxidation of the body fat to prevent fat build up
Blood pressure: The calcium in the milk is a great source of lowering of high blood
Nutrition: The proteins and Vitamins provide the best source of nutrition for growing
children etc
Beauty: The Casein contained in milk helps in long lustrous hair as well nail and skin
tone.
Sleep: The milk contains soporific compounds that help people relax at bed time to
get a good nights sleep
Cows milk contains the best possible nutrition in its SNF which gives all the
nutrition that a growing child needs for mental and physical health. The protein,
vitamins, Calcium and other minerals give the child all the vital nutrition it needs.
20

However the cow milk is lower in fat content than other alternatives like Buffalo milk
and that helps keeping obesity at check especially for younger children.
Product Specifications:

Freshest milk delivered within 12 hours

Farm to home concept

Milked in vacuum area by help of Rotary Parlous

Untouched by hand

Timely delivery

Customized order depending on requirement in a week

Priced at Rs 80 (inclusive of delivery charges)

The company wanted us to promote these product specifications to the customers

through various mediums like door to door canvassing, retail outlet events, events in
parks etc.

Project Expectations(From company perspective):

To increase the customer awareness about pure form of milk being available in
Mumbai and Pune

Brand Promotion in selected locations to target new customers

Brand Building in new locations

Leads generation, classification into Hot/Cold , providing free samples and

timely follow up

21

Implementation Plan:

Targeting societies in select areas doing door to door promotion

Targeting customers in Joggers park

Targeting Customers coming to Retail stores in affluent areas

Follow up on the leads generated

Activities undertaken during Field Work:

1.

Visited the Parags dairy farm located at Manchar, Mumbai-Pune Expressway,

to understand following in the dairy industry

a)

Production of milk

b)

Maintenance of supply chain

c)

Marketing activities to increase the sales

2.

To understand the strategic requirement to expand business in the dairy

industry
3.

Direct marketing, selling & sampling activities and understanding their

nuances
4.

Outdoor marketing activities like maintaining kiosks in parks and

departmental stores to increase brand awareness

5.

Interacting with the customers to meet the sales requirements

6.

To understand various requirements needed to obtain permission for direct

marketing and kiosks activities in HNI areas

7.

Understanding the nuances of the all the activities and preparing reports and

recommendations based on my findings

22

Segmentation and Target Group

Market segmentation is probably one of the more common concepts marketers deal
with in their profession. Market segmentation is essentially a process of subdividing a
large homogenous market into clearly identifiable segments having similar needs,
wants, or demand characteristics. The outcome of this initiative is to tailor a
marketing mix that precisely matches the expectations of customers in the targeted
segment identified as a result of the market segmentation process.
Markets are segmented because few companies have the required resources to supply
the needs of the total market. Unless the total market is small in size and highly
concentrated geographically, serving the entire market may prove a daunting task.
Most markets find it more manageable if the total demand for the market is broken
down into segments and organizations choose those market segments, which it is best
resourced to handle. The four bases upon which a typical consumer market is
segmented includes behavioral, demographic, psychographic and geographical
variables.
Market segmentation in the consumer milk consumption is based on socio
demographic variables. That is to say different customers prefer specific brands based
on their profession, income.

23

Positioning strategy of Pride of Cows

Pride of Cows positioning strategy for Facebook isnt to attack major milk
bands head on. Instead, Pride of Cows is positioned as a wholesome milk directly
from farm to the customer doorstep.
All milk brands can be placed on a spectrum that stretches from value brand on one
side to premium high quality milk on the other end.
SWOT Analysis
Strengths:
Purest form of Cows milk
Delivery at door steps
Ease of use from bottles and drinking without boiling
Full nutritious values preserved
Only major brand providing farm to home concept

Weakness:
Available only in 1 Liter bottle
No variants available
People consider price too high
Availability issues as people want option to buy from the retailers on demand
Select availability only in 2 cities
No reverse logistics for the bottle
No mention of Parag or Gowardhan on the product bottle reduces the impact

24

Opportunity:
Very large untapped market
Growing people resentment against powder being used in the packet milks
People feeling need to provide best nutrition of the milk
People are facing indigestion when using tetra packs

Threats:
Smaller players are entering the market and claiming the same features at less
price
Tetra packs having huge shelf life
Increasing prices customers have complained about prices being raised twice
in a year

25

Factors Affecting the Purchase of Milk for Consumption

For the purchase of a milk product, the factors motivating the customer can be
measured by the following attributes:
Price
Purity of milk (milk free of contamination & adulteration)
Brand Image (trust or premium)
Hassle-free delivery system
Freshness of milk

Price of Milk:
Consumers are satisfied when the price when the price of the milk is within their
budget constraints.
Purity of milk
Consumers are satisfied when the quality of the milk is very pure without any
contamination & adulteration.
Brand Image
Consumers are satisfied when they buy from the brand which they trust.
Hassle-free delivery system
Consumers are satisfied when they get milk delivered at comfort of their homes at the
right time.
Freshness
Consumers are satisfied when they are sure of the freshness of the milk which they
buy.

26

Introduction to the competing brands

Amul:
The undisputed Top Milk Brand in India is Amul. Established in 1946, the
company deserves maximum credit for making India the world's largest milk and milk
products producer. Evolved over the years as the most preferable liquid milk brand in
the Indian subcontinent Amul churns out a turnover of almost 8,000 crore annually.
According to industry experts the production forecast for the next year happens to be
even better with an estimate turnover of 10,000 crore. The best thing about the brand
is that it has not only penetrated the urbanized areas but the rural market as well.
Amul apart from milk is the manufacturers of a host of allied products like Ghee,
butter, cheese, powder milk, flavored milk, curd, cold coffee, Lassi etc.

Nestle:
Nestle has been a partner in Indias growth since 1912, establishing a special
relationship of trust and commitment with its people. When Nestle India set up its
first manufacturing plant in Moga in 1961, the local milk economy was virtually
nonexistent. Since then, Nestle has set up milk collection centers that ensures prompt
collection and pays fair prices, transforming Moga into a prosperous and vibrant milk
district. By supplying milk to Nestle, farmers are benefited from the assurance that
our collection centers will purchase their entire quantity of milk, however big or
small, as long as it meets Nestls stringent quality standards. Furthermore farmers are
paid monthly, guaranteeing them a regular income that would not be possible with
seasonal crops. Since there is continuous demand from Nestl for milk throughout the
year, their occupations are stable ones, assuring them of long term relationships and
fair prices.

27

Sudha Dairy:
The Bihar State Milk Co-operative Federation Ltd is a dairy cooperative
established in 1983 is an enterprise of the government of Bihar. It markets its products
under the label "Sudha Dairy". The co-operative was founded by the Government of
Bihar in 1983 to coordinate the work of various local milk unions. The co-operative
facilitates the procurement, processing, and marketing of the dairy products produced,
provides education to the unions on successful dairy processing, and assists with
animal care including artificial insemination, vaccination, and feeding.

Mother Dairy :
Mother Dairy, set up in 1974, is a wholly owned subsidiary of the National Dairy
Development Board (NDDB) of India. Mother Dairy offers the following products:
Liquid Milk, Ice Creams, Flavored Milk, Dahi, Lassi, MishtiDahi, Ghee, White
Butter, Table Butter, Cheese, UHT Milk etc. Most of these products are available
across the country.
Mother Dairy markets approximately 4.8 million liters of milk daily in the
markets of Delhi, Mumbai, Saurashtra and Hyderabad. They have a market share of
66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and
undertakes its marketing operations through around 14,000 retail outlets and 845
exclusive outlets. The companys derives significant competitive advantage from its
unique distribution network of bulk vending booths, retail outlets and mobile units.

28

Gokul:
Kolhapur ZillaSahakariDudhUtpadakSangh Ltd is better known by its popular
brand Gokul. It was stated as an Operation Flood cooperative dairy project established
on 16th March 1963. Since then it has achieved many land marks in Milk
Procurement, Extension, Animal Health, Breeding, Milk Processing, and Product
making and Marketing. At present Gokul has modern 7 Lakh Liters/day capacity
dairy plant with 4 owned and 1 hired chilling centers having 4.25 Lakh Liters/day
milk handling capacity with modern Packing Unit at Navi Mumbai.

29

Competitor Analysis:
Sarda Farms:
The company considers Sarda as there direct competitors as they are the only
company providing farm to home facility. Some of the salient features of the
competitor are:

Provides same features at Rs 65 for first 3 months

Variants available

Recycle concept using glass bottles

Very interactive website

The product in this case goes through a different process hence it is similar but

not exactly same as the Pride of Cows. But to the user it will look similar due to
similar operations.

Amul, Nestle Tetra Pack:

Since these products are in the similar price range they become direct
competitors. Also they are from branded a source which makes them strong
competitors.
Some of the salient features of the competitor are:

Available at all shops

Longer shelf life

30

Local BhaiyaWala Milk:

The milk provided by the unorganized local bhaiyawala milk is another strong
competitor as they provide pure quality of milk at door steps. Also in Indian
environment dependency on these milk providers is quite high as people believe the
return on investment for this kind of milk is high. The main difference is in the quality
standards, hygiene conditions and delivery schedule.
Some of the salient features of the competitor are:

Milking in front of the eyes

Priced at Rs 60

High fat content so better ghee at home

31

INTRODUCTION OF STUDY

LITERATURE REVIEW

1. ITC to take on Nestle, PepsiCo, Amul and HUL with dairy products & noncarbonated drinks

http://articles.economictimes.indiatimes.com/2014-0220/news/47527368_1_chitranjan-dar-food-business-yc-deveshwar

ITC is planning to venture into dairy products & non-carbonated

drinks to establish it as one of the largest food companies in India. This move
will bring in more competition in the market among the major competing firms in
India. They are creating dairy back-ends in Saharanpur and Munger for the last 2
years which covers more than 2800 farmers with average procurement of 10,000
litres per day. ITC has been giving a run for money for many big firms. So, this
move will have an effect on many dairy firms in India.

2. Pride of Cows aims to end milk adulteration

http://www.apnnews.com/wp-content/uploads/2013/08/

India has been facing the issue of adulteration in milk since long
and prolonged measures are taken by various government bodies and dairy
companies in order to stop the poisoning of milk. One such initiative taken by
Parag Milk Foods Pvt Ltd by launching Pride of Cows in year 2011 with unique
F2H (Farm to Home) service. It is available only through invitation and the milk
will be delivered at your door step directly from Bhagyalaxmi Dairy Farm,
Manchar at the outskirts of Pune.
This move will help the firm in attracting more customers who are health
conscious & are willing to spend more for quality product. It will also help them in
increasing their revenue & market share
32

PROBLEM STATEMENT& IMPORTANCE OF STUDY

PROBLEMSTATEMENT
Being a new brand in market Pride of Cows have very low brand visibility, which
terminating into low sales for Pride of Cows milk.

IMPORTANCE OF THE STUDY

Pride of Cows is the first of its kind to use temperature controlled logistics in
order to deliver a unique taste and experience to its customers.

Bhagyalaxmi Dairy Farm (P) Ltd launched its premium offering Pride of Cows. The
unique F2H (Farm to Home) initiative will allow customers access to milk which is
produced without human interference at Bhagyalaxmi Dairy Farm using state-of-the-art
technology and global best practices. Pride of Cows is the first of its kind to use
temperature controlled logistics in order to deliver a unique taste and experience to its
customers.

The Pride of Cows brand will ensure milk that is exceptionally clean and low in
bacterial count, which makes it a healthy alternative. This milk needs no boiling and is
high in nutritional value, specially packaged, carefully handled and hand delivered to
the customers door-step every morning. Pride of Cows bears a distinct flavor of
delicious full bodied milk, which is richer and creamier than regular milk.

Speaking on the occasion, the brain behind the concept, Edmund Piper, Bhagyalaxmi
Farm Manager said, Going Green is being responsible towards our environment, we
now bring this green promise to our customers breakfast table in the form of Pride of
Cows. Bhagyalaxmi Dairy Farm is home to Indias first F2H initiative in the form of
Pride of Cows and I am sure our esteemed customers will love the sweet flavor of the
milk and the health benefits that it will be able to provide them with. With Pride of
Cows, Bhagyalaxmi Dairy Farm will fulfill its promise of providing its customers with

33

a world class environmental friendly Dairy product.

Adding to this, Chairman, Parag Milk Foods Pvt Ltd said, "We at Parag are constantly
innovating and finding ways of touching our consumers lives with new and exciting
products that keep up with evolving lifestyles. We now have premium milk for every
need, this milk is sure to be a family favourite and complement our existing product
portfolio.

With no interference of distributors or agents, Pride of Cows will be available in Pune

at the MRPRs. 80/- per litre at your doorstep.

34

Learnings from the Project

Learnt Customer Interaction and Engagement During the course of the project I
had interaction with many customers so as time increased the ability to engage
customers in meaningful conversation increased.
Learnt how to handle situation when people complained about prices being too
high the ability to justify ones requirement of certain price increased. People
complain about price no matter what, so this was a learning experience as we had to
handle lots of people who considered the price to be high.
Recognizing target audience from all the people coming to try the milk The
Company had asked to provide free samples to anybody who approached for
information while doing retail events. From those events I learnt how to recognize
customers.
Learnt how to generate sales by negotiations and convincing abilities- with time I
learned how promotion lead to sale through negotiations.
Learnt how to work in a team and coordinate with others- I was put in a 5
member team and had to coordinate with everyone to finish tasks at required time.
Learnt how to judge peoples mood- while talking to customer interaction their
mood played an important part in the final conversions, so to judge persons mood
was very necessary
Deeper understanding of the Milk segment in Dairy products- as the brand Pride
of Cows is still making inroad in the market we had to know the competitors in detail
to able to convince people to buy our product
Importance of keeping delivery promises- During the process there were incidences
where people complained about delivery not being on time and hence people
cancelled orders. So if an organization is promising it customer delivery service it
should work hard to be efficient in it.
35

OBJECTIVE OF THE PROJECT:

Objective:

To understand the present milk market & to develop promotional strategies.

To understand the brand perception of the customer.

To understand the attitude of the customer towards promotional strategiesfor

Farm to Home milk.

36

Scope of the Project Study

To add value as per customer requirement to revalue change

Any product modification can be done

37

Limitations

The study is based onrandom sampling. Thus the demography of respondents is

limited. This demography of sample may not be the complete representation of the
entire market.
HYPOTHESIS:
H0:-Visual & Verbal cues are effective in promoting premium milk product
H1:-Visual & Verbal cues are not effective in promoting premium milk product

38

Sampling

Sampling element:
A Sampling element is the object about which or from which the information is
desired.
Sampling elements for my survey are individuals who knowledgeable enough to take
part in the survey.
Sampling extent:
Sampling extent is the place or location from where you are targeting the target
audience to get relevant responses from the population.
Sampling extent for my survey are people who took milk sample from Pride of Cows
during the summer internship.
Sampling size:
Sampling size refers to the number of element to be included in the study. My survey
has a sample size of more than 66.
Sampling unit:
The sampling unit is an element, or a unit containing the element, that is available for
selection at some stages of the sampling process.
Sampling unit for my Survey are Men, Women, Girls and Boys.

39

Sampling technique:
The sampling technique that I chose for my survey was Convenience Sampling.
The objective behind this was to get the honest and useful input from the respondents
and this was possible by asking questions to the target sample frame. The response is
filled in a sheet which was later analyzed by me.

40

The following data shows the sampling of the customers done by me during the
internship project and no of customers converted into sales by this activity during
different activities.

Type of activity

No of samples

Conversion

% conversion

Residential

306

23

7.51%

Retail store

186

32

17.20%

Joggers Park

25

Gym

15

6.66%

Total

532

58

10.90%

8%

Table: Number of sampling and conversion during various activities

350
306
300
250
186

200

Series 1
Series 2

150

Series 3

100
50

25

15

0
Residential

Retail store

Jogger's Park

Gym

Graph: Number of sampling and conversion during various activities

41

From the total no of samples (532), total of 58 customers converted in the regular
customers. This conversion rate is about 10.90% which is a very acceptable number
for the sales from this kind of promotions.
The best conversion rate was given by the activity at the retail store. Retail store
promotions in the Matunga area were the most successful giving about 17.20% of
conversion rate from the total sampling during this activity. The main reason behind
the higher conversion rate was the strategic location of the store. The customers who
visited the store were the target audiences. Most of them were the mother having with
the baby child around 0-5 years of age and pregnant women. Also the other customers
were the HNIs who were the actual target customer of the company.
The next best conversion rate is from joggers park activities which is 8%. The
conversion rate was low because people were interested in just taking up the sample
and exactly wanting this a little expensive milk. Also at the park, people come in the
group so the chance of converting a whole group is very high then any individual.
Activities at joggers parks consisted of setting up a kiosk at the entrance/exit of the
park and the explaining and promoting the product to the customers leaving or
entering the park.
The residential park activities also gave the good conversion rate of 7.51% which is
slightly lower than the average conversion rate. The residential activities were carried
out at different societies of the Matunga and Wadala area. The societies were selected
as per the target customers. So generally the society with HNI people, upper middle
and upper class people was selected for the particular product. The residential
activities were carried out during the starting of the project, so the conversion rate
could have been more than the achieved one.
The least conversion is achieved in the gym activity. The reason for the least
conversion rate of about 6.66% was due to some bad timing of the promotion and
non-target customers.
The following table shows the analysis of the rate of sampling and rate of conversion
during the different activities.

42

Samples
4.69% 2.81%

Residental
Retail store
34.96%
57.51%

Jogger's park
Gym

Graph: Sample rate

Samples
2.81%
7.51%
Residental

8.00%

Retail store
Jogger's park
Gym
17.20%

Graph: Conversion rate

43

Findings

Purity of MIlk
2
9
Agree
Netural
Disagree

41

Interpretation:-

The sample seems to be concerned with the purity of milk while making the purchase
decision.

44

Hassle Free Home Delivary

0

12
Agree
23

Netural
Disagree

16

Interpretation:The sample seems to be give slight priority if the milk is delivered to their doorstep at
right time.

45

Brand Image
0
9
Agree
Neutral
21

Disagree

12

Interpretation:The sample seems to be neutral about the brand image of the milk which the buy.

46

Which size of milk packets do you prefer?

80%
60%
40%
20%
0%
250 ml
500 ml
1 Liter

Size of milk packets people

prefer

250 ml

500 ml

1 Liter

0%

36%

64%

Interpretation:Majority of people purchase one liter packets

47

Which type of packing do you purchase?

50%
40%
30%
20%
10%
0%
tetra

bottle

loose
pouch

Which type of packing do you

purchase?

tetra

bottle

loose

pouch

15%

10%

25%

50%

Interpretation;Half of the customers give preference to buy pouch milk.

48

What kind of milk do you prefer?

80%
60%
40%
20%

0%
Tonned
Double tonned

Skimmed
Natural

What kind of milk do you

prefer?

Tonned

Double tonned

Skimmed

Natural

15%

11%

12%

62%

Interpretation;-

Except health conscious people others prefers natural milk.

49

Do you like to consume milk without

boiling it?
60%
40%
20%
0%
Yes
No

The following are the people

are ok with the direct
consumption of milk

Yes

No

55%

45%

Interpretation:-

There is no much difference

50

What are your expectations from POC?

What are consumers expectations from POC?
68%

3%

9%

3%

9%
1%

1%

3%

Interpretation:Majority of consumers gives preference to product quality.

51

1%

1%

1%

Which milk brand do you purchase??

25%
20%
15%
10%
5%
0%
Nestle

Gokul

Goward
han

Amul

Others

11%

22%

13%

25%

16%

Mahan
anda
The mentioned milk brand
people purchase

13%

Interpretation:Gokul has highest market share compare to others.

52

Freshness of Milk
2

9
Agree

Netural
Disagree

41

Interpretation:The sample seems to be divided about the freshness of the milk. Some are very
concerned while others dont mind it as long as it is well preserved in the container.

INCOME GROUP

11

12

Less than 3lakhs

Between 3 to 5lakhs
more than 5lakhs

29

Interpretation:Most of people surveyed for this project has income cap from 3 lakhs to 5 lakhs. And
almost same number of people belongs to rest of two groups.

53

Conclusion and Recommendation Based on the Research

The study focused on intension to study customer purchase decision of a milk product
and its impact on sales, marketing and branding activities of Pride of Cows. The study
was on the theoretical basis of Research Methodologies called Regression testing.
This study is to be mainly considered as descriptive analysis for further study in
mentioned field. The main factor consumers are concerned while purchasing milk are
purity, price, hassle free home delivery and to lesser extent both brand image and
freshness of the milk also plays a role.

Thus by understanding the socio

demographics of the milk consumers, we can better target the consumers using better
promotional techniques to increase the sale of pride of cows. Since pride of cows is
premium milk product it is better to use promotional activities in the residential areas
of the A1, A2, A3 customers so as to get new orders and sales. Also Health conscious
individuals can also be targeted.

54

Recommendations Based On Field Work

Parent brand Gowardhan should be mentioned on the product because it

increases confidence in the product there is no mention of Parag on the product
and many people were skeptical about the authenticity of the product.
More variants of product POC Packaging in 500 ml and 250 ml in bottles. And
also to introduce Tetrapack of Pride of Cows as this will enable to cater to all India
market.
Since it was converted into a promotion cum sales activity it would have been
more inspiring for interns if sales had added incentivesthere should be more
sales based incentive to make work interesting
Visit to plant should be encourage for customers since many people are
interestedif company is asking people to verify by going to the farm they should
also help people to reach there.
The website lacks features and is not consumer friendly should be updated the
website should be updated to include more features.
Customer grievance system should be strengthened the customer grievance
system is lacking features like mail and on site and needs to be strengthened.
Since during internship period the no. of free samples and orders to customers
home increased the delivery system was not well equipped to handle the new
pressure
Promotional activity in areas like elite clubs will yield more results

55

BOOKS
MalhotraNaresh k.Marketing Research: An Applied Orientation
AldermanHarold ,Mergos George ,Slade,Roge(1987)COOPERATIVES AND THE
COMMERCIALIZATION OF MILK PRODUCTION IN INDIA
WEBSITE

http://www.ilsi-india.org/conference-on-processed-foods-and-beverages-forhealth/Session-IV/ILSI_Final%20Presentation_Samit%20Dutta_TechSession-IV/ILSI-Milk-Dairy-Products-revised.pdf)

http://www.prideofcows.com/

National Diary Development Broad - http://www.nddb.org/

United States Department of Agriculture http://www.usda.gov/wps/portal/usda/usdahome.

56

Survey Questionnaire
The Survey is done to do consumer purchase decision analysis of the various factors
which affect the purchase decision of the customer.
Questionnaire design
The questionnaire consisted series questions that the respondents had to fill in google
form. All the objective questions of the survey were made compulsory for the
submission of the survey response.
The initial questions were aimed towards understanding the demographic statistics of
the survey respondents.
Q1. Age Group
less than 20
between 20 & 35
between 35 & 60
greater than 60
Q2. Sex
Male
Female
Q3. Income Group
less than 1 lakh per annum
between 1 & 5 lakh per annum
greater than 5 lakh per annum

57

These questions were framed with the customer purchase decision factors discussed
previously. These questions were on Likert scale (1-stongly agree to 1-stongly
disagree).
Q3. How much is price a factor?
Q4. How much is purity of milk a factor?
Q5. How much is brand Image a factor?
Q6. How much is Hassle-free delivery system a factor?
Q7. How much is freshness of milk a factor?
Q8.Which milk brand do you purchase?

Q9.Which size of milk packets do you prefer?

Q10.Which type of packaging do you purchase?

Q11. What kind of milk do you prefer?

Q12.Do you like milk without boiling?

Q13.What are your expectations from the brand of milk pride of cows

Questionnaire Response Analysis

I received 52responses in total. These feedbacks proved to be beneficial to the study
being conducted in many ways.
Descriptive Statistics:

Demographics
58% percent of the respondents were males and 42% were Females.

58

59