PROJECT REPORT

ANALYSIS ON PARAG DISTRIBUTION SYSTEM

LUCKNOW PRODUCERS COOPRATIVE MILK UNION LTD.

IN PARTIAL FULFILMENT OF REQUIREMENT FOR THE AWARD OF DEGREE

PROGRAMME OF G.B.T.U.
MBA 2012-13
SUBMITTED TO

SUBMITTED BY

Ms. Abhya Pandey

NIRAJ SHUKLA
ROLL NO 1106170096

SHERWOOD COLLEGE OF MANAGEMENT

INDIRA NAGAR, LUCKNOW
(Affiliated to GBTU)

[1]

DECLARATION

I hereby affirm that the present survey done on Analysis On Parag Distribution
System is my own and has not been submitted previously.
It is mandatory for every student of Master of Business Administration from
SHERWOOD COLLEGE OF MANAGEMENT INDIRA NAGAR, LUCKNOW
to undergo research report at an organization location with a research live problem.

I was thus assigned research at Lucknow Producer Co-operative Milk Union Limited
My research has been fully experience for me. Now I have broad idea of functioning
of organization and this will be very helpful for me in the coming days.

[2]

ACKNOWLEDGEMENT
Life is a process of accumulating and discharging debts, not all of those can be
measured. We cannot hope to discharge them with simple words of thanks but we can
certainly acknowledge them.
At this level of understanding it is often difficult to comprehend and assimilate a wide
spectrum of knowledge without proper guidance and advice. Hence I would like to
thanks Respected Ms. Abhya Kapoor for her support, Nobel Guidance and
Encouragement, which maid this project successful.
I express my sincere gratitude to my industry guide Mr. V.K Saxena (Marketing
Manager) of Lucknow producers cooperative milk union ltd, Lucknow for his able
guidance, continuous support and cooperation throughout my research without which
the present work would not have been possible.
I pay my sincere thanks to entire team of, Lucknow producers cooperative milk
union ltd, Lucknow for the constant support and helping in the successful completion
of my research reports.

NIRAJ SHUKLA

[3]

TABLE OF CONTENT
Executive summary
Company Profile
Aims & Objective for NDDB
Objective of Research
Distribution channel
Sales promotion
Research methodology
Data analysis
Interpretation of data
Finding
Limitation
Suggestion
Annexure
Bibliography

[4]

EXECUTIVE SUMARY
In each and every management training scheme there is a provision for real time job
experience within the academics time period. It calls as summer training or corporate
training or corporate interaction; the main aim of this to introduce to the corporate
arena. This training is to utilize and implement the theoretical knowledge of the
classroom into real corporate world. It is well said, Nothing is much practical than
a good theory but on the very same we cant deny practical is better than
theory. These phrases are opposing each other but also are complementary to each
other. Experiencing both in a good dedicated manner really plays a lot in ones
professional carrier.
In the field of marketing the scenario is no exception. Field exposure is very much
necessary for the student of marketing too. In this stream of business the application
of theory is very frequent. From consumer behavior to consumer satisfaction all the
theory can be experienced in a day spend in the field of marketing. Marketing is now
so much diversified that now it can be done by mere use of cell phone or by internet,
but experiencing the real marketing tactics is only possible by working in the field.
Therefore I am really to my college and parag Company for providing me with this
opportunity.
I have worked at different areas in Parag Company. In initial days I work there charge.
The job was to with marketing executive and to collect the feedback of agent and
retailers.

[5]

INTRODUCTION
AN INTODUCTION OF FMCG INDUSTRY
The FMCG sector is a cornerstone of the Indian economy. This sector can drive
growth, enhance quality of life, create jobs, and support penetration of technology. A
vibrant FMCG sector can boost agricultural product and export. It contributed to the
exchequer significantly, disperse technology across the value chain and usher in the
product innovation. This innovation can improve Indian Health standards.
Fast Moving Consumer Good (FMCG) industry has a long history. However, the
Indian FMCG began to take shape only during the last fifty-odd years Today, the
Indian FMCG industry continues to suffer from a definitional dilemma. In fact, the
industry is yet to crystallize in terms of definition and market, size, among others. The
definitional confusion that has marked the Indian FMCG industry is getting
confounded. Some others call it the CPG industry and some even call it the PMCG
industry. The Indian FMCG industry has suffered because of the confusion. It is an
industry which touches every aspect of human life from looks to hygiene to palate.
Perhaps defining as industry whose scope is so vast is not so easy. The government is
at crossroads not knowing how and where to slot the Indian FMCG industry and
unsurprisingly, the manner in which it has treated an industry which holds tremendous
promise as producer of goods that pervade everyday life has been only callous. The
facts that the FMCG industry is a noteworthy employer and a major tax payer are
being ignored.
The only thing that is cheering the industry are the reforms of the nineties. Post
reforms, the industries is excited about a burgeoning rural population whose income
are rising and which is a willing to spend on goods designed to improve lifestyle.
What is needed now is a change in the mindset of the mandarins, FMCG industry
-friendly legislation are the needs of the hour. It does not matter whether changes are
being brought about by dawning market realitiesor the ongoing economic reforms.
One thing is certain here:
The Indian FMCG industry has a promising future to look forward to.
[6]

In terms of growth potential, the Indian market is a great horse to bet on. With a little
help and understanding from the government, the Indian FMCG can realize its true
potential. So far, it has been a checked graph for the MNCs operating in the Indian
FMCG industry. Domestic companies are only beginning to make their presence felt
in the industry. It has taken tremendous consumer insight and market savings for the
FMCG players to reach where they are today. But, the journey has only begun.

[7]

IMPORTANCE OF DIARY INDUSTRY

Milk and milk product are very important from nutritional point of view as they
contain almost all the essential food constituents required in human diet.
Dairy industry also fits well in diversifying farming programs and reducing the
farmers risk involved in agriculture. It provides a regular and at least substantial
income to the farmers. Most of the farm income such as income from corn wheat etc
is seasonal whereas income from dairying is distributed throughout the year.
Dairy industry is also in maintaining the fertility of soil. Dairy farming helps in
grassland farming as well. Grass for the hay and pasture. The manure is also produced
from the cattle dung, which returns food nutrients to the soil. The dairy industry has
got a big and regular labor requirement and this keeps our farmers busy throughout
the year.

[8]

ABOUT THE TOPIC

The whole project is based on the distribution system of PARAG. As we all know,
future is always uncertain. More precisely when there is volley of brilliant
competitors satisfaction through product innovation maintaining the standard quality
therein is the key to success. competitive forces have compelled the companies to
focus on specific segment of the, market with frequent product innovation and rather
new products and launching them with greater confidence.
Comparative analysis helps in:
a) To find various ways to increase their sales in Lucknow.
b) To discover the various factors which hurdles people to take Parag products &
packet milk.
c) To compare their distribution techniques & suggest possible methods to improve
the efficiency.
d) To identify various factors which motivates people to use Parag products &
packet milk.

[9]

OBJECTIVE OF THE STUDY

The objective of the project is to study market potential of parag milk and to know the
consumers perception about parag milk. The report contains brief introduction and
information about its products. Parag is the largest player in the milk sector in Uttar
Pradesh.
Parags quality is a relentless commitment to continuous improvements in products,
Process and systems to provide consistent quality products to meet our customers
requirement throughout the state. This report clearly mentions objectives of the study
and research methodology utilized. Research design used in this project is exploratory
and the sources of the information are both of primary and secondary data. The data
collection method used is structured non disguised questionnaire in different types of
questions, used are open ended, multiple choice, close ended and dichotomous. The
report contains a detailed view of the tasks, which have been undertaken to analyze
the market of parag milk. Various set of questions have been prepared to know
perceptions of retailers and consumers about parag milk. Some of the research areas
are Aashiana, LDA colony.The comprehensive and intensive marketing activities at
Lucknow are controlled by manager marketing of lucknow.
The route or supervisor duty is to see whether the milk and milk products are properly
distributed to the agents of parag in due course of time. They observe the market
trend, the competitors activities, difficulties of the market. They try to penetrate the
new market area where the agents of parag do not exist.
In Lucknow Amul is strongest competitors in the field of milk. Most agents as well
consumers say that the quality of parag is much better compared to other packed milk
brand in Lucknow. Capturing a dominant share of the urban milk market hit here to
serve by a multitude of small milk vendors. Parag has created a network that links
numerous co-operative producer societies in different milk shed area to the organized
urban diary industry. Diary co-operative societies at the village level handles the
procurement of milk. Co-operative milk unions at the district level are engaged in
processing and product manufacturing. Pradeshik co-operative diary federation
(PCDF) at the state level coordinates with the marketing officials, removing the
[10]

middlemen between the producers and consumers by the procurement of the milk
directly by the producer directly through co-operative society. In D.U.S. Ltd.
Lucknow at reception point of milk from freedom societies milk is collected and basic
tests are carried out quickly after cleaning. It is send for further processing finally
after pasteurization three types of milk is obtain that is full cream milk, toned milk
and janta milk.
The route or supervisors duty is to see whether the milk and milk products are
properly distributed to the agents of parag in due course of time. The whole project
has been a great learning for me to experience and understand the market dynamics
with respect to milk products.

[11]

INDUSTRY PROFILE

[12]

Traditionally, in India dairying has been a rural cottage industry. Semi-commercial

dairying started with the establishment of military dairy farms and co-operative milk
unions throughout the country towards the end of the nineteenth century.
In earlier years ,many households own their own family cow or secured milk from a
neighbor who had one. With the increase in urban population fewer households could
afford to keep a cow for private use and moreover there were other problems also like
the high cost of milk production. problems of sanitation etc. restricted the practice;
and gradually the family cow in the city was eliminated and city cattle were all sent
back to the rural areas.
Gradually farmers living near the cities took advantage of their proximity to the cities
and began supplying milk to the urban population; this give rise to the fluid milksheds we see today in every city of our country.
Prior to the 1815 most milk was necessarily produced within a short distance of the
place of consumption because of lack of suitable means of transportation and
refrigeration.
The Indian dairy industry has made rapid progress since independence. A large
number of modern milk plans and product factories have since being established.
These organized dairies have been successfully engaged in the routine commercial
production of pasteurized bottled milk and various western and dairy products. With
modern knowledge of the protection of milk during transportation, it became possible
to locate dairies where land was less expensive and crops could be grown more
economically.
In India, the market milk technology may be considered to have commenced in 1950,
With the functioning of the central dairy of Aarey milk colony, and milk product
technology in 1956 with the establishment of Amul dairy, Anand.
Indian dairy sector is still mainly and unorganized sector as barely 10% of our total
milk production undergoes organized handeling.

[13]

[14]

COMPANY PROFILE
The common brand name of the company is PARAG the meaning of PARAG is the
pollen of flower the slogan in the logo is:PURE NATURAL & GOOD HEALTH
Parag milk shed is situated in the Lucknow, the capital of Uttar Pradesh since
independence it has formed part of the traditional supply line of agriculture products
from the village to the big cities rich in its milk potential the milk shed has, in the
source of last few decades been thoroughly exploited by small traders and powerful
contractors and well organised private dairies. Thus while such intermediaries were
retaining large profits the rural milk producers found their position deteriorating day
by day.
In 1950 a co-operative milk supply union was organised in Lucknow, which started
collecting milk from village and supplied to Lucknow and local markets.This milk
union continued function for about a decade, in the mean time Lucknow milk scheme
was established by government of India in 1959-60 to ensure chaeaper milk to the
local population in Lucknow.The scheme started operating through 12 chilling centres
in eastern Uttar Pradesh. These chilling stations were mainly coated in the district of
Lucknow, Barabanki, Raebareli, Kanpur, Unnao, Sitapur, etc. The milk was mainly
collected through contractors. 10 milk union were also found almost at the same time,
around each chilling center. These continued functioning in a rather lop-sided manner
till 1977.Gradually all the milk union almost become disfunctioning and was
supplying very little quantity of milk during the years 1970-77. Obviously the
contractors had monopoly and collected major share of milk which was either
supplied to L UCKNOW or to the local population of the city.
This programme was launched in Uttar Pradesh in 1972 and the implementing agency
in the was pradeshik dairy federation limited was framed in the year. The basic idea
was to replicate and pattern societies in Uttar Pradesh. In august September 1972.
Organization of societies in Lucknow district was taken up bar out, Mohanlalganj,
Amausi blocks. A spear head team from national from national dairy development
board was posted in Lucknow, which started functioning from April 1978 with a team
[15]

of 27 employees drawn from Lucknow milk 198 milk procurement cooperative

societies by the year 1981, when the operation flood-14 programme ended.
Feeded balancing dairy, Lucknow Producers Co-operative Milk Union Ltd was set up
under operation flood-1 programmer with the specific products. This dairy is situated
in the middle of Lucknow. The dairy was commissioned in April 1978 and processed
the liquid milk procured from the then milk shed comprising Lucknow, Raebareli,
Barabanki and Unnao.
The purpose of establishing feeder balancing dairy, Lucknow co was to provide
remuneration market for milk produced in the milk shed comprising district

of

Lucknow, Barabanki, Raebareli, Kanpur and Sitapur as envisaged under operation

flood-1 scheme. Thus feeder balancing dairy was obelised to receive entire surplus
milk from the rural areas, through a network of milk coop. In 1078-79 the average
handling of milk per day at FBD-Lucknow Producers Co-operative Milk Union Ltd.
Was 49,300 kg. With peak handling of 1,04,950kg in the Feb.
In april 1981 Lucknow Producers Co-operative Milk Union Ltd. Launched
pasteurized whole milk packed in polythene sachet for local consumers. The supply of
milk was gradually extended to other local markets.
As the basic idea of establishing FBD- Lucknow Producers Co-operative Milk Union
Ltd. Was to convert surplus milk into various dairy- products, this activity started in
September 1978 with manufacture of skimmed milk powder and ghee. The
manufacturing of table butter was started from April 1981.
In view of milk production procurement and marketing potential of Lucknow
Producers Co-operative Milk Union Ltd, and expansion programme has been
undertaken by N.D.D.B.on turn basis. The target set is as under:
Increase processing capacity from 1lakh to 3.5 litres per day.
Increase power plant capacity from 10 tons to 40 tons per day.
Increase the capacity of ghee plant from 1.m.t to 4.m.t. per day.
Increase the capacity of butter manufacturing up to 16.m.t. per day.
The work of expansion has been complete in 1989.
The work of expansion has been complete in 1989.
[16]

The work of expanded dairy started functioning on full capacity in 991-1993 year.
The liquid milk and products are selling in the market in thr brand name of PARAG.
The milk product has been started by P.C.D.F. Lucknow. The sale of the milk has been
carried out Lucknow Producers co-operative milk union Ltd., Lucknow.
In the year 1983 P.C.D.F. Ltd. Started working under operation flood-II (white
revolution) scheme. Mostly milk union sahakari board werte connected under
operation flood-II, having the name Dughdh Utpadak Sahakari Sangh ( D.U.S.S.)
Ltd. P.C.D.F. Ltd. Takes royalty of common brand

name PARAG and all the

important policy taken by Pradeshik Co-opearative Dairy Federation Ltd. i.e.

Lucknow,Kanpur, Varanasi.
PARAG provides hygienic, nutritious milk and milk product. In the year 1983
opeartion Flood-II scheme was launched, the main objectives of the operation flood
were following

To collect the milk directly from the producers(villagers through society).

To ensure the supply of quality milk collected from the villagers which being

sold in the market area of the city.

To save the producers , villagers and the customers from the middleman.
The milk is collected firstly to the society level then it comes to D.U.S.S. level
finally it comes under the state level i.e. federation.

ABOUT THE ORGANIZATION

[17]

Name of the organization;

Lucknow Production Co-operative Milk Union ltd

Address of the organization

22, Joplin Road, Lucknow

Established;

1938

Registration;

23 March 1938

First Dairy Inspector

N.K Bhargva

Place of establishment

initially at char bag,

Shifted to Ganeshganj, Presently at 22, Joplin
Road, Lucknow.

Founder

Ray Bhadur Gopal Lal Pandya

Administrator

Mr. Chandra Bhanu

General Manager

Mr. S.K.Prasad

Manager administration

Mr.U.N. Singh

Marketing In charge

Mr.V.K. Saxena

Marketing Manager

Mr.Vishal Kumar
Mr.K.V.Yadav

Supervisor/Route In charge

Mr. Yogendra Yadav

Mr. R.R.Dubey.
Mr. Mahesh
Mr. Gupta

DAIRY INDUSTRY
PROFILE
[18]

Today India is The Oyster of the dairy industry ,It offer opportunities globe to
entrepreneurs worldwide ,who wish to capitalized on one of the worlds largest
and fastest growing markets for milk and milk products. A bagful of pearls await
the international dairy producer in India .The India industry is rapidly growing , trying
to keep pace with the galloping progress around the world. As he expends his over
operation of India many profile option a wait him. He many transfer technology.
Indias dairy sector is expected to triple its production in the next 10 years in view of
expending potential for export to Europe and west. Moreover with WTO regulations
expected to coming to force in coming years all the developed countries which are
among big expert today would have to withdraw the support and subsidy to their
domestic milk products sector .also India today is the lowest cost producer of per liter
of milk in the world, at 27cent with the US63cent and Japans $28 dollars. Also to
take advantage of the lowest cost of production and increasing production in the
country multinational companies are planning to expend their activities here.
The urban market for milk products is expected to grow at an accelerated pace

of

around 33% per annum to around Rs43,000 crores, by year 2005,the value of India
dairy produce is expected to be Rs 10,000 million .Presently the market is value at
around Rs7,00,000mn.

BACKGROUND

[19]

Indian dairy sector contributes the large share in agricultural gross domestic product.
Presently there around 70; 000village dairy cooperatives across the country. the cooperative societies are federated in to 170 district milk production union; which is
turn has 22-state co-operative dairy federation. Milk production gives employment to
more then 72mn dairy farmers. In terms of total production, India is the leading
producer of milk in the world followed by USA.The milk production in1999-00 is
estimated at 78mn MT as compared to 74.5mnMT in the previous year. The
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.
Although milk production has grown at a fast pace during the last three
decades milk yield per animal is vary low. The main reasons for the low are;

Lack of use of scientific mulching.

Inadequate availability
Unavailability of deter

Milk yield comparison

Country

Milk Yield (Kg per year)

USA

7002

UK

5417

CANADA

5348

NEW ZEALAND

2976

PAKISHTAN

1052

INDIA

845

WORLD AVERAGE

3234

SOURCE: Export prospects for agro based industries; trade centre Mumbai
Production of milk India
Year

Production

Per

1991-92
1992-93
1993-94

55.7
58.0
60.6

capitalavailibilty(gms/day
178
182
187
[20]

1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10

63.8
66.2
69.1
72.2
75.5
78.3
80.6
84.4
86.2
88.1
97.1
97.1
100.9
104.8
105.5
109.3

194
197
202
207
213
217
220
225
230
231
241
233
246
252
259
265

Source: DFPI Annual Report 1991-2010

FUTURE PROSPECTS

India is the worlds highest milk producer and all set to become the world largest food
factory.Incelebration India dairy sector is now ready to invite to NRIs and foreign
investor to find company a place for the mammoth investment project. Be it investors,
researchers entrepreurs or the merely curious-India sector has something for
everyone.

[21]

Milk production is relatively efficient way of converting vegetable material into

animal food .dairy cows buffaloes goats and sheep can eat fodder and crop by
products, which are not eaten by humans. Yet the loops of nutrients energy and
equipment required in milk and handling inevitably make milk comparatively
expensive food. Also if dairying is to play is part in rural developments policies the
price of milk producer has to be remunerative. In a situation of of increase
international price low availability of food aid and foreign exchange constraint, large
scale subsidization of milk conception will be difficult in the majority of develop
country.
The national dairy development board was created to promote fianc and support
producer owned and controlled organization.NDDBs programmers and activities seek
to strengthen farmer cooperative and support national policies that are favorable to the
growth of such institutions. Fundamental to NDDBs efforts cooperative principles
and cooperative strategies.

MILK PRODUCTION
Indias milk production increased from 21.2 million MT in 1968 to88.1 melon MT in
2008-9
per capital availability of milk presently is 231 grams per day, from 112 grams per
day in 1968-69
Indias 3.8 % annul growth of milk production surpasses the2% growth in production,
the net increase in availability is around 2% per year
[22]

MARKETING
In 2003-04, average dairy cooperative milk marketing stood at 148.75 lakh per year
annul growth has average about 4.2 percent compounds over the last five years.
Dairy cooperative now market milk in about 200 cities including metros and some
550 smaller towns..
During the last decade the daily milk supply per 1000 urban consumer has increased
from 17.5 to52.0 liters.

Innovation
Bulk vending saving money
Milk travel as far as 2,200 kilometer to deficit carried by innovative rail and road
tankers.
Ninety five percent of dairy equipment is produced in India, saving valuable foreign
exchange.

CONSTITUTION
The national Dairy Developments Board has been constitutes as a body corporate and
declared an institution of national importance by an act of India Parliament.
The national dairy developments Board initially reiterated as society under the
society ,,Act 1860

was merged with the erstwhile India Dairy Cooperation ,a

company formed and registration under the company Act 1956 ,by an act of India
Parliaments the NDDB Act 1987 with effect from 12 October ,1987. The new body
corporate was declared an institution of national importance of act.
[23]

AIMS AND OBJECTIVE FOR NDDB

Evolution of standard of quality of and milk product to be market by fed ration.
To provide encouragement incentive on production, procurements, processing and
making activities of milk product for the economic developments of former
community.
To encourage market and R&D programs.
To help member milk union in technology administrative, financial assistances.
To arrange collection storage and transport for milk and products.
To establish collection and refrigeration centre liquid milk unit and processing
facilities for distribution and sales of items purchased from various sources.
DARIY COOPRATIVES
Dairy cooperative accounts for the major share of processed liquid milk market in the
country. Milk in processed and markets by 170 milk producers cooperative union
which federate in to 15 states cooperative milk marketing Federation.
Over the year, brand a created by cooperative have become synonymous with quality
and value. Brand and like Amul (GCMMF) VIJAYA (AP) Verka (Panjab, Saras
(Rajesthan) ,Nandini (Karnatka) milma Kerla (kolhapur )are among those that have
earned customer confidence

Some of the major Dairy Cooperative federation includes

Andhra Pradesh Dairy Development Cooperative Federation Ltd
MADHAYA Pradesh Cooperative milk
Bihar State Gujarat Development Cooperative Federation Ltd
Haryana Development Cooperative Federation Ltd
Karnataka Development Cooperative Federation Ltd
[24]

Gujarat Development Cooperative Federation Ltd

MILK CO-OPERATIVE IN UTTAR PRADESH

Agar Dugdh Utpadak sahkari Sangh Ltd.Agra

Aligardh Dugdh Utpadak sahkari Sangh Ltd. Aligardh
Allahabad Dugdh Utpadak sahkari Sangh Ltd Allahabad
Azamgarh Dugdh Utpadak sahkari Sangh Ltd. Azamgargh
Ballia Dugdh Utpadak sahkari Sangh Ltd. Ballia
Banda Dugdh Dugdh Utpadak sahkari Sangh Ltd ,Banda
Barabanki Dugdh Utpadak sahkari Sangh Ltd .Barabanki
Etowah Dugdh Utpadak sahkari Sangh Ltd. Etowah
Farukhabad Dugdh Utpadak sahkari Sangh Ltd. Farukhabad.
Ferozabad Dugdh Utpadak sahkari Sangh Ltd, Ferozabad.
Ghaziabad Dugdh Utpadak sahkari Sangh Ltd, Ghaziabad.
Gorakhpur Dugdh Utpadak sahkari Sangh Ltd, Gorakhpur.
Hardoi Dugdh Utpadak sahkari Sangh Ltd, Hardoi.
Jaunpur Dugdh Utpadak sahkari Sangh Ltd, Jaunpur.
Kanpur Dugdh Utpadak sahkari Sangh Ltd,Kanpur
Lucknow Dugdh Utpadak sahkari Sangh Ltd.Lucknow
Manipuri Dugdh Utpadak sahkari Sangh Ltd, Manipur.
Matura Dugdh Utpadak sahkari Sangh Ltd, Mathura.
Mirzapur Dugdh Utpadak sahkari Sangh Ltd, Merzapura.
Moradabad Dugdh Utpadak sahkari Sangh Ltd, Moradabad.
Muzaffarnagar Dugdh Utpadak sahkari Sangh Ltd, Muzaffarnagar.
Pratapgarh Dugdh Utpadak sahkari Sangh Ltd,Pratapgarh

[25]

Rea Bareli Dugdh Utpadak sahkari Sangh Ltd ,Rae Bareli

Saharanpur Dugdh Utpadak sahkari Sangh Ltd ,Saharanpur
Sitapur Dugdh Utpadak sahkari Sangh Ltd,Sitapur
Sultanpur Dugdh Utpadak sahkari Sangh Ltd, Sultanpur
Unnao Dugdh Utpadak sahkari Sangh Ltd,Unnao
Varanasi Dugdh Utpadak sahkari Sangh Ltd,Varanasi

IFRASTRUCTURE (PLANT&MACHINERY)
The organization is equipped with sophisticated plants & machinery of manufactures
Ghee, butter, milk powder and other dairy product of a big scale.
PCDFhas also distinction of having the most sophisticated &fully computerized first
vertical dairy in India. This is state of the art project with the various selection located
in the basement of three floors of the buildings .A well-equipped central quality
control laboratory is at the luck now with cheeks the organ optic chemical
&microbiological quality of the products.

[26]

Marketing
The federation of marketing milk and milk products, under the common brand name
PARAG.
The client include several prestigious institute in U.P Delhi beside the Indian army
.The sale network is separate though out northern India.Allthogh PCDF be- -live that
a satisfied customer is their best advertisement.
OTHER PROGRAMMES
Due to its reputations., efficiency, wide network and quality manpower, PCDF is
currently implementing following developments and promotion programmers
supported by central state government
I.
II.
III.
IV.

Integrated mini dairy project. (IMDP)

Women dairy project (WDP)
Rural family welfare project (RFWP)
Diversified agriculture support project (DASP)
These programmers have won many laurels for PCDFadding further its

reputation. PCDFsreal sense of pride lies in the fact that its farmer member are
heading surely and steadily toward prospers future and the knowledge that its
consumer reaffirm their in PARAG ,YEAR after .It is this context ,that PCDFs
success is to be measured.
WELEFARE PROGRAMMES IN LMU
In LMU welfare departments is a sub divided of Personal & Administration
departments .In labor welfare is the head of this sub- division whose work is the
implements welfare programme to solve out grievance of worker and the maintained
harmonious relationship between and management.
HR POLICIES;
There are also welfare scheme for the employees of the union

[27]

Scholarship and financial assistance for the child of the employees.

Financial assistance in the case of accident if the employee the

children of the class Third &class fourth employees of the fordation
gete scholarship and financial of the Rs 50 per month ,if they get
70% of more the high school and intermediate examination, while
getting 70 % or more in graduate they will get Rs 100scholarship
and for professional course student prevision of Rs500 scholarship is
there.

A personal accident welfare found was constituted for providing

financial assistance for family of the employees of the federation
,who has last any part of body in accident. This scheme is known as
PAWS AS-1985.the get assistance to Rs5.26L in cash of accident
lost .The scheme does not include the case of suicides ,accident due
to intension of crime. Every employees has to contributes 10per
month to the found.

In the case of sudden death of any employee during this service

which period ,one of his dependent is given employee welfare
scheme, there is provision to provide the employee with aid in case
of accident, Cancer ,Heart attack Paralysis etc.

FUTURE PLANS FOR 2012-13

The targets for the current year, set by PCDF are the follows
Working committee;
By the end of the year 2009-10, 415 milk cooperative committees were in existence.
Target is raise up to 450 committees.
Milk holding:
In the year of 2010-11the average milk handing was 29850 kg per day while the target
the year 2011-12 is 3700Kg.
Distribution of liquid milk:

[28]

As againsed the year 2011-12 where the distributed of liquid milk was 90,000 liter per
day and the 2012-13 the target is one lakh liter per day.
PRODUCT OF THE COMPANY
1. LIQUID MILK :
a) Parag Gold (full cream milk)
b) Parag Taaza (toned)
c) Parag liter (skimmed milk)
2) Paneer
3) Butter
4) Parag ghee
5) Parag skimmed milk power
6) Parag Peda
7) Parag flavored milk
8) Parag mattha
9) Parag chawal kheer
10) Parag channakheer
11) Parag basen laddoo

INDUSTRIAL MARKETING MIX

The establishment or once objective and preparation a strategic marketing plan which
is cooperative the various appropriate method or reaching these object.
o Product quality
o Product development
o Product price
o Product range
o Sales promotion
o After sale service
[29]

o Advertising
o Market research
o Stock level
o Unit of sale
o Distribution arrangements
o Cash discount
o Packaging
o Sampling

COMPARATIVE SALE OF MILK PRODUCTS 2008-09

Growth rate
s.no

Product name

Target

Achieved

Percent

Achievement
of

219592
1

244550

111%

Ghee

[30]

on the base

previous of previous

year
183230

Year
+33

Butter

509415

404055

79%

422670

_44

Panner

99178

93805

95%

78110

+20

Peda

52435

7225

115

44165

36

Mattha

23.77

15.55

65

20.96

25

Flavored milk

85.67

58.40

72

73.84

55

Dhai

24.92

22.05

90

9.25

116

Kheer

6.48

7.13

110

5.65

28

Bassanladdu

17861

5.73

126

15092

48

10

Chach

30161

22484

158

312

83

OTHER PROGAMMERS RELATED TO MARKETING

YEAR - 2012

POPULATION OF LUCKNOW
Demand of milk
Demand of Parag milk
Market share of Parag
Total rout of milk sale
Concessionary employment:
Customer Relation
Traveling exp. per liter
Going of distribution
[31]

2CRORE
6 lakh liter per day
141.30,000 per day
29%
Packed milk -47
Loose milk-.
160
157
98
10,000
14218
142
10
37.5
10
15
115

ORGANISATION HIERARCHY

[32]

BC
OH
A
RI
DR
OM
FA
DN
I
R
E
C
T
O
R
S

[33]

MARKETING DEPARTMENT

MM
AA
RR
KK
EE
TT
NI
GN
RG
E
S
E
A
R
C
H

[34]

DISTRIBUTION CHANNEL
Distribution channel is an operation or series of operations, which brings produced
or manufacture goods into the hands of the final consumer or user.
A channel of distribution is a chain through which a producer transfers the
ownership of his goods and services to his consumers. Channels of distribution are
also as middleman, agents of distribution and distribution is abridge to cover the gap
between the manufactures and consumers.
Types of Distribution
A -Direct Distribution Method
Under direct distribution method , the manufacture of the producer sells their
products. Under their own management.
B Indirect distribution method
Under this method a producer of manufacture sells his products to consumer
through the wholesaler and retailers.
Milk is a perishable item. It is required to be distributed immediately after its
production and packaging hence milk should be distributed accurately. Parag Milk
and milk product are made available to the consumer both in the morning and
evening. this is done through effective distribution channels, which supplies the milk

[35]

PROCESS

APC
RGEO
EMN
N(S
TDSU
TODM
UNPE
OTDR
LET
E
T
S

A G
DE

C
E
EI

L
I

K
N E

I
E

R
R S

A
OP
UR

T C

)R

[36]

PROCEDURE FOR DISPATCH & DISTRIBUTION OF PACKED MILK AND

LOOSE MILK IN CANS FOR LOCAL SALE
1

PURPOSE
Timely distribution of milk to retailers in safe condition.

SCOPE
All types of packed milk in Poly-pack & loose milk in cans for
distribution in the local market.

RESPONSIBILITY
a

Manager Marketing

Sales Supervisor/ Sales Representative

4

PROCEDURE

4.1 According to coverage planning, survey of the particular area is conducted by

marketing staff considering the consumption potential and civic status of that
area.
Following aspects are kept for selection of retail outlet:
a

It is preferred that the retail outlets in question should have refrigeration facility
i.e. availability of either deep freeze or domestic fridge, so that the quality of
milk could be maintained till the actual sale occurs.

A selected locality, where we have decided to open a retail outlet, may have no
shop available with a fridge or there may be no shop at all, and demand of milk
may be there, in such cases, considering the demand and the selling time i.e.
within 2 hours of delivery of milk, an agency for sale of milk is given to the
aspirant.

Aspirant applies to us on plain paper and after verification, by concerned route

supervisor/Sales

representative/Manager

(Marketing),

duly

prescribed

application format is got filled (with two securities and two photographs) and
then agency for sales is granted by Manager (Marketing).
d

A security amount of Rs.500/-(Five hundred) minimum (Refundable) for selling

packed milk & Rs. 1000/- (one thousand) minimum for loose milk and
membership fee of Rs. 100/-(one hundred) (Non-Refundable) is taken from the
retailers in both the cases.
[37]

4.2 Supply of liquid milk in poly-pack in city is being done daily in two shifts i.e.
morning & evening but products are supplied to the retailers only with evening
milk supply.
4.3 Distribution of milk and milk products to the retailers, approx. 500 in number, in
MEERUT city, is organized through seven to eight supply routes, through hired
transporter.
4.4 Demand of milk and milk products for both the supplies, the same evening and
next morning, is collected by the transporter of respective route on demand/supply
chart daily in the morning at the time of taking back the empty crates/ cans and the
sales proceeds, from milk selling agent/ retailers.
4.5 Having collected the demand as well as sales proceeds, the transporters return to
dairy by 10.00 AM and hand-over to the empty crates to sachet section. Then they
deposit cash in the cash section on the basis of stock transfer voucher having full
details of type/Quantity milk as well as the number of crates/cans, duly issued by
sachet section at time of giving milk to the transporter. Then the route wise
demand for same days evening & next day morning is submitted to Marketing
section by transporter.
4.6 Marketing section consolidates the complete route/vehicle wise demand for both
meetings and sends the same to sachet/products section daily by 11.30AM.
4.7 For loading the milk, supply vehicles reporting time schedule is as under:WINTER SCHEDULE
EVENING
MORNING
Vehicle reporting time at main
2.00 to 3.00
1.00 to2.00 PM 1.00 to2.00 AM 12.00 to1.00 AM
gate
AM
Last vehicle out time
3.30 PM
3.00 AM
2.30 PM
4.00 AM
PARTICULARS

SUMMER SCHEDULE
EVENING
MORNING

4.8 Morning supplies to all agents on all routes are completed by 5.45 AM in summer
and 6.30 AM in winter. Like-wise in summer, evening supply reaches the last
point by 5.30 PM.
4.9 In the morning after finishing the supply at last point, vehicle waits for 1 to 1
hours and then starts collecting empty crates and sale proceeds.
4.10 Sales staff is allotted routes to supervise/promote the sale of liquid
milk/consumer contact etc. They start working on respective routes from 5.15 AM
to 9.15 AM and again from 4.00 PM to 7.00 PM.
[38]

4.11 To maintain the quality of milk under transit from dairy dock to last sales point,
transporter is provided with a time schedule in which the supply time from first
point to last point is clearly mentioned.
4.12 It is the sole responsibility of the transporter to deliver/ supply milk and milk
products to the retailers in time. If delays occur without sufficient reason there
are penalty clauses in the agreement on which they are getting penalized.
4.13 The agreement between the dairy and the transporter engaged in liquid milk
supplies covers all necessary action to be taken under unforeseen circumstances,
like accident of the vehicle, loot/arson, riot etc. If the vehicle breaks down in
midway with milk left for distribution, then there are provision clauses, so that
alternate arrangement is immediately done and milk is delivered/ distributed on
scheduled time.
4.14 Marketing section also receives a copy of route wise / vehicle wise challan
issued by sachet section in both time supply with the details of type of
milk/quantity/crates etc. On the basis of the above the sale records are
maintained in the marketing section.
4.15 The copy of the challan after proper entries in the marketing books is being sent
to finance section for maintaining party ledger in terms of quantity dispatched &
sale proceeds deposited. Thus accounts are settled in finance section and crosschecking is done time to time by marketing section. The Stock transfer voucher
is entered in Route wise Milk and Milk Product Distribution Register.
5.

REFERENCES:
A.

Stock transfer voucher

B.

Demand/supply chart

C.

Milk Indent chart

D.

Route wise Milk and Milk Product Distribution Register

E.

Daily Milk and Milk Product Sale Register

F.

Format for application cum allotment order for Commission

agency.

RECORDS:
A.

Stock transfer voucher

B.

Demand/supply chart
[39]

C.

Milk Indent chart

D.

Route wise Milk and Milk Product Distribution Register

E.

Daily Milk and Milk Product Sale Register

PRODUCT PROFILE
Milk & Milk Products
Butter
[40]

Butter offered by us is known for its features such as its very pure, fresh and rich in
taste and is widely demanded by our clients all across the country. To ensure their
original taste and quality, we provide these in proper packaging.
Curd
Curd offered by us is prepared from purest, freshest pasteurized & homogenized milk
and it is free from any added sugar or preservative. It is stored with transportive
refrigerated condition. Our products are well known for their convenient use and fine
quality and hygienic build.
Ghee
We bring forth pure ghee that is made using high quality milk sourced from
organically reared farm animals. As a reputable organization our range meets the
Agmark special grade specification of Government of India.
Milk
It is also ideal for drinking straight from the pack for kids and adolescents who simply
love its creamy taste sans the inconvenient cream layer. The UHT treatment ensures
zero microbial activation, while preserving the maximum flavor, taste, and nutritional
value.
Milk may be defined as the whole, fresh, clean, lacteal secretion obtained by the
complete milking of one or more healthy milch animals, excluding that obtained
within 15 days before or 05 days after calving.
Milk, is an almost ideal food. It has high nutritive value. It supplies body-building
proteins, bone forming minerals and health giving vitamins and furnishes energy
giving lactose and milk fat, besides supplying certain essential fatty acids. It contains
the above nutrients in an easily digestible and assimilable form. All these properties
make milk an important food for pregnant mothers, growing children adolescents,
adults etc.
Energy Value:
Milk Fat

9.3 c/g

Milk Protein

4.1 c/g

Lactose

4.1 c/g

The Energy value of milk will vary with its consumption. On average cow milk
furnishes 75C/100gm and buffalo milk 100C/100gm.

[41]

[42]

[43]

[44]

[45]

[46]

QUALITY TEST FOR MILK

Cleanness
Foreign particles
Soda test
Alcohol test(for freshness)
Urea Test
Glucose
Sugar
Salt
Hydrogen Peroxide
Formaline
Starch
Mineral Oil test
Phosphatase test ( for proper pasteurization of milk to ensure 100 % death
of disease causing bacteria)
Milk fat
Milk S.N.F.( Solid not fat)

[47]

SWOT ANALYSIS OF INDIANDAIRY INDUSTRY

Strength
There are following major strength of the traditional dairy products sector:

The mass appeal enjoyed by the wide variety of product.

The market for these products for exceeds that for western dairy product like
milk powder.

There operating margin are also much higher than the western products.

Weakness

Low advertisement of the other product

Milk consumed by worker

Trucks are not fully load

Complains are very high regard ding leakage sour of milk etc

Availability of Parag in other district is very low.

Awareness of Parag website is very low.

The preparation and market and marketing these of products is generally done
by always and that limits development in the sector.

The practice of inadequate hygiene is the preparation &handing of these

products.

Opportunity
The expending business prospect provide by these product and their accompanying
value addition ,call for a though study of this sector I would facilities packed and
increase in product and marketing of hygienically prepared and property packed
products to meet the demand of a growing population has been demonstrated at the
NDBS Sugam Dairy.
THREATS
Milk vender the un organized sector .Today milk vender is occupying the pride of
place in the industry.
[48]

Organized dissemination of information about the harm that they are doing to the
producer and consumer should see a steady decline in their importance

Objective of researchThe purpose of research is discover answer to question through the application of
scientific procedures .The main aim of research is to find truth which is hidden and
which has not been discovered as yet. The market research was done with primary
objective of studying the role of PARAG providing parag product to the consumer
easily &according to their teste.major objective of my survey;

1. To know the actual demand of Parag products of various booths.

2. To know availability of Parag milk in the market.
3. To know the the margin satisfaction to agents
4. To know the consumer perception about the PARAG products and know
the positive &negative aspects of organization.
5. To known what is known image of organization in the market.
6. To known the why they purchase PARAG
7. To give suitable suggestion
8. To get the main finding base of questionnaire.
9. To know awareness of agent &consumer about Parag products.
10. To know SWOT or company strength, weakness, opportunity &threats)
11. To known distribution channel, and sales area of product.
12. To determine the appropriate delivery time of the Parag milk product.

The distribution channel

Distribution is also a very important component of Logistics & Supply chain
management. Distribution in supply chain management refers to the
distribution of a good from one business to another. It can be factory to
supplier, supplier to retailer, or retailer to end customer. It is defined as a chain
of intermediaries; each passing the product down the chain to the next
[49]

organization, before it finally reaches the consumer or end-user. This process

is known as the 'distribution chain' or the 'channel.' Each of the elements in
these chains will have their own specific needs, which the producer must take
into account, along with those of the all-important end-user.

Channels
A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers,

Retailer (also called dealer or reseller), who sells to end customers

Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alice from

producer to consumer in certain sectors, since both direct and indirect channels
may be used. Hotels, for example, may sell their services (typically rooms)
directly or through travel agents, tour operators, airlines, tourist boards,
centralized reservation systems, etc. process of transfer the products or

services from Producer to Customer or end user.

There have also been some innovations in the distribution of services. For
example, there has been an increase in franchising and in rental services - the
latter offering anything from televisions through tools. There has also been
some evidence of service integration, with services linking together,
particularly in the travel and tourism sectors. For example, links now exist
between airlines, hotels and car rental services. In addition, there has been a
significant increase in retail outlets for the service sector. Outlets such as
estate agencies and building society offices are crowding out traditional
grocers from major shopping areas.

Channel decisions

Channel Sales is nothing but a chain for to market a product through different
sources.

Channel strategy

Consumer location

[50]

Type of marketing channel

Intensive distribution - Where the majority of resellers stock the 'product'

(with convenience products, for example, and particularly the brand leaders in
consumer goods markets) price competition may be evident.

Selective distribution - This is the normal pattern (in both consumer and
industrial markets) where 'suitable' resellers stock the product.

Exclusive distribution - Only lambard specially selected resellers or authorized

dealers (typically only one per geographical area) are allowed to sell the
'product'.

Channel motivation

It is difficult enough to motivate direct employees to provide the necessary

sales and service support. Motivating the owners and employees of the
independent organizations in a distribution chain requires even greater effort.
There are many devices for achieving such motivation. Perhaps the most usual
is `incentive': the supplier offers a better margin, to tempt the owners in the
channel to push the product rather than its competitors; or a compensation is
offered to the distributors' sales personnel, so that they are tempted to push the
product. Julian Dent defines this incentive as a Channel Value Proposition or
business case, with which the supplier sells the channel member on the
commercial merits of doing business together. He describes this as selling
business models not products.

Monitoring and managing channels

In much the same way that the organization's own sales and distribution
activities need to be monitored and managed, so will those of the distribution

chain.
In practice, many organizations use a mix of different channels; in particular,
they may complement a direct salesforce, calling on the larger accounts, with
agents, covering the smaller customers and prospects. These channels show
marketing strategies of an organization. Effective management of distribution

channel requires making and implementing decision in these area.

Specific distribution-related decisions include:
the number of layers between the company and the customer (channel depth)
[51]

the specific type of partners in each layer (e.g. wholesalers or distributors,

mass merchants or high-end specialty retailers)

the number of partners at each layer (channel breadth), and the geographic

placement of partners (location, density).

These strategic and logistical decisions frame the distribution channels (from a
marketing perspective) or downstream supply chain (from an operations

perspective) for a company's product

For example, Coke seeks to be ubiquitous ("always within an arm's length")
with very broad distribution across markets via numerous outlets of many
different types (e.g. grocery and convenience stores, restaurants, vending

machines).
At the other end of the continuum, some companies choose to distribute their
products through relatively few, geographically clustered specialty stores (e.g.
innovative, tech-based entertainment products - like TiVo -distributed through
electronics stores like Best Buy or Circuit City), or may restrict distribution to

protect retailers' margins (e.g. "hot" toys exclusively available at Toy 'r Us).
A retail distribution strategy is driven by three inter-related objectives:
broadening market coverage, enlisting product support (from retailers) and

containing channel conflict (among retailers).

The primary objective of distribution strategy is to provide sufficiently
broad, gap-free market coverage, i.e. being available in enough outlets so

that customers have convenient access for purchases.

Retailers are gatekeepers since they decide whether or not to carry products
based on their prospective retail profitability, considering factors such as:
- Gaps (versus duplication) in the retailer's product line assortment
- Track record (credibility) of the supplier
- Projected retail margins (initially and over time)
- Anticipated promotion support (e.g. advertising, displays, "deals")

Historically, manufacturers - especially big national brands - held the balance

of power over most retailers and could, more or less, force them to carry
products and provide support. In the past couple of decades, though, the
balance of power has generally shifted to the retailers, largely due to retail
consolidation (the big have gotten bigger) and the emergence of power
retailers like Wal-mart and Home Depot.

[52]

The second retail distribution strategy objective is to enlist product

support.

More specifically, a company needs to select and motivate partners who:

Maintain adequate inventories

Display the product in desirable locations (e.g. eye-level shelves, high traffic
areas)
Advertise and promote (special displays and signing, discounted sales prices,
inclusion in flyers and ads)
Sell the product (educating customers, demonstrating the product, 'closing the
sale')
Install and service the product

The specific support (level and type) that a product requires hinges primarily
on the product characteristics (simple or complex; high end or mass market;
position along the product life cycle).

At the most basic intuitive level, the required support depends on whether a
product is "bought" (well known and demanded), or needs to be "sold"
(unrecognized product, brand or need). The former benefit from distribution
that is broad and deep, and don't require extensive in-store support. The latter
are best served by more selective distribution through specialty stores with
highly motivated, well-trained salespeople who can educate customers and
close sales.

The third retail distribution strategy objective is to contain channel

conflict.

Given that their prospective profitability is the primary reason that retailers
carry products, projected profit margins and sales volume are critical
variables.

[53]

On a macro basis, a product's inherent market value drives customer demand,

and largely determines aggregate sales volume and average pricing.

On a more micro basis (i.e. from the perspective of a specific retailer), sales
are a share of the total sales volume in a specific trading area and margins are
a direct function of prevailing (or lowest prices) offered by competing
retailers.

Horizontal channel conflict is increasingly common in real life as companies

attempt to reach different customer segments by utilizing multiple distribution
channels (including direct from the manufacturer).

More specifically, when multiple channels are employed and distribution

intensity increases, three profit threats may confront a retailer:

Sales cannibalization: when a retailer loses sales to a newly authorized retailer

Margin dilution: when aggressive retail competition drives retail prices down

Customer diversion: when customers get sold by one retailer,

but buy from another offering lower prices.

So, the dominating distribution objective, broadening market coverage (i.e.

increasing customers' convenience), is somewhat at odds with the other two
objectives - enlisting product support and avoiding channel conflict. While a
company may want broad rather than selective distribution, and may want to
attack different market segments though multiple channels of distribution, the
stark reality is that intensive hybrid distribution may, if not very carefully
managed, result in horizontal channel conflict, deteriorating retail economics,
and eventual loss of critical retail-level product support.

Once the retail distribution strategy is set, the management focus shifts to
distribution logistics (i.e. moving goods from the manufacturer, through any
intermediaries, to the customer).
[54]

To achieve its strategic distribution objectives, a company may choose to use

few layers of intermediaries (called short distribution channels), or relatively

many layers (long distribution channels).

supporting the strategic objectives, refers to the storage and movement of
goods, information, and money between the manufacturer and the final
customer. Logistics is sometimes inappropriately viewed as an exclusive
operations function. In reality, marketing often has a major role in the day-today logistics process with responsibilities ranging from sales forecasting and
demand management to inventory planning and the allocation of short
supplies.

Specific distribution-related decisions include:

(1) the number of layers between the company and the customer (channel
depth)

(2) the specific type of partners in each layer (e.g. wholesalers or

distributors, mass merchants or high-end specialty retailers)

(3) the number of partners at each layer (channel breadth), and the
geographic placement of partners (location, density).

These strategic and logistical decisions frame the distribution channels (from a
marketing perspective) or downstream supply chain (from an operations
perspective) for a company's products.

More specifically, a company's distribution strategy is largely defined by

decisions on the number and type of customer interfaces. That is, order entry
points (where and how orders are placed) and fulfillment nodes (where and
how customers obtain finished goods).

For consumer products, the fulfillment approach is a retail distribution strategy

that can range from exclusive distribution though select retailers, or intensive
distribution through a multitude of stores.

For example, Coke seeks to be ubiquitous ("always within an arm's length")

with very broad distribution across markets via numerous outlets of many
[55]

different types (e.g. grocery and convenience stores, restaurants, vending

machines).

At the other end of the continuum, some companies choose to distribute their
products through relatively few, geographically clustered specialty stores (e.g.
innovative, tech-based entertainment products - like TiVo -distributed through
electronics stores like Best Buy or Circuit City), or may restrict distribution to
protect retailers' margins (e.g. "hot" toys exclusively available at Toy 'r Us).

A retail distribution strategy is driven by three inter-related objectives:

broadening market coverage, enlisting product support (from retailers) and
containing channel conflict (among retailers).

The primary objective of distribution strategy is to provide sufficiently

broad, gap-free market coverage, i.e. being available in enough outlets so
that customers have convenient access for purchases.

Retailers are gatekeepers since they decide whether or not to carry products
based on their prospective retail profitability, considering factors such as:

systems)
- The supplier's market position (clout)

In part to defray initialization costs and mitigate risk (to the retailer), an

Gaps (versus duplication) in the retailer's product line assortment

Track record (credibility) of the supplier
Projected retail margins (initially and over time)
Anticipated promotion support (e.g. advertising, displays, "deals")
Compatibility of logistics infrastructures (location of facilities, information

increasing number of retailers have instituted slotting fees, payments made to

the retailer whenever new products are adopted. Slotting fees are highly
controversial since, in essence, they erect de facto economic barriers excluding
all but the biggest, most deep-pocketed suppliers.

The second retail distribution strategy objective is to enlist product

support.
[56]

More specifically, a company needs to select and motivate partners who:

(a) Maintain adequate inventories

(b) Display the product in desirable locations (e.g. eye-level shelves, high
traffic areas)

(c) Advertise and promote (special displays and signing, discounted sales
prices,
inclusion in flyers and ads)

(d) Sell the product (educating customers, demonstrating the product, 'closing
the sale')

(e) Install and service the product

The specific support (level and type) that a product requires hinges primarily
on the product characteristics (simple or complex; high end or mass market;
position along the product life cycle).

At the most basic intuitive level, the required support depends on whether a
product is "bought" (well known and demanded), or needs to be "sold"
(unrecognized product, brand or need). The former benefit from distribution
that is broad and deep, and don't require extensive in-store support. The latter
are best served by more selective distribution through specialty stores with
highly motivated, well-trained salespeople who can educate customers and
close sales.

.
The third retail distribution strategy objective is to contain channel conflict.

[57]

Given that their prospective profitability is the primary reason that retailers carry
products, projected profit margins and sales volume are critical variables.
On a macro basis, a product's inherent market value drives customer demand, and
largely determines aggregate sales volume and average pricing.
On a more micro basis (i.e. from the perspective of a specific retailer), sales are a
share of the total sales volume in a specific trading area and margins are a direct
function of prevailing (or lowest prices) offered by competing retailers.
The implication is that the intensity of competition among retailers is a major driver
of retailer support (or lack thereof). Invariably, as a product's distribution base is
broadened (more accounts, stores, and types of stores are added), the likelihood of
horizontal channel conflict increases. In most instances, horizontal channel conflict
boils down to a question of economics: retailer profits are pushed below acceptable
levels as a result of direct or indirect competitive behavior. As their economics
deteriorate, retailers' support for a product understandably deceases.
Horizontal channel conflict is increasingly common in real life as companies attempt
to reach different customer segments by utilizing multiple distribution channels
(including direct from the manufacturer).
More specifically, when multiple channels are employed and distribution intensity
increases, three profit threats may confront a retailer:
(1) Sales cannibalization: when a retailer loses sales to a newly authorized retailer
(2) Margin dilution: when aggressive retail competition drives retail prices down
(3) Customer diversion: when customers get sold by one retailer,
but buy from another offering lower prices.
So, the dominating distribution objective, broadening market coverage (i.e. increasing
customers' convenience), is somewhat at odds with the other two objectives - enlisting
[58]

product support and avoiding channel conflict. While a company may want broad
rather than selective distribution, and may want to attack different market segments
though multiple channels of distribution, the stark reality is that intensive hybrid
distribution may, if not very carefully managed, result in horizontal channel conflict,
deteriorating retail economics, and eventual loss of critical retail-level product
support.
Once the retail distribution strategy is set, the management focus shifts to distribution
logistics (i.e. moving goods from the manufacturer, through any intermediaries, to the
customer).
To achieve its strategic distribution objectives, a company may choose to use few
layers of intermediaries (called short distribution channels), or relatively many layers
(long distribution channels).

[59]

[60]

[61]

SALE PROMOTION
[62]

Sales promotion is different promotion, Sales promotion refers to those marketing

activities other than personal selling, advertisement and publicity, which stimulate
consumer purchasing and dealer effectiveness, such as displays, shows and
expositions, demonstrations and various non-recurrent selling efforts not in the
ordinary routine. Its purpose is to increase the desire of salesman, distributors and
dealers to sell a certain brand and to make consumers more eager to buy that brand.
This includes sales activities which supplement both personal selling and advertising.
Sales promotion is only a part of promotion. Promotion includes sales promotion,
advertising, personal selling etc. Promotion helps to make all other marketing
activities more effective and efficient, but sales promotion helps only to sales activity.
Sales promotion may be done with the help of tools like displays, exhibitions, free
sample coupons, premium etc. Sales promotion acts as a link between advertisement
and personal selling.
To sum up, promotion is to make the demand inelastic, while there is change in the
price. So promotion must stimulate the consumers to buy more.
Communication and promotion
Marketing communication involves, sharing of meaning, information, concepts, about
the products and services by buyers and sellers. Such communications are conveyed
with the help of advertisement, salesmanship and sales promotion. A communication
will be treated as effective only when it is properly responded by the buyer. The
communication must have identical meaning for both sender and receiver. If the
communication does not properly reach the receiver or the message received is not the
same as the message sent, then that will be called Break down at the message stage. In
the market communication, feed back means a response, a reaction over the message
sent back by a customer to the sender. In the case of effective communication feed
back will be always present.
Need for Product Promotion
a) To introduce a new product in the market.
b) To influence the public with the help of new uses of the product.
c) To increase the frequency of purchase by each buyer.
[63]

d) To encourage dealers to stock more goods.

e) To withstand in the competitive field.
f) To increase the sales by imparting special training to salesmen and by
window display.
Effects of Promotion
1. The present day market is very competitive due to the large number of rivals and
substitutes. With the help of promotion producer must create product differentiation in
the minds of consumers.
2. Promotion is very essential to communicate the use of the product and the nature of
the product to consumers and middlemen
3. Nowadays most of the consumers market their products in wider area and the
consumers are also very large in number. In such cases personal selling alone cannot
be used and so all the steps for promotion are to be followed.
4. During the periods of depression it is essential to maintain at least some minimum
market. Therefore it is very essential to use promotion.
Promotional Strategy
1. Deciding Promotional Mix
(a) Nature of the product
(b) Nature of the Customer
(c) Nature of the Market.
(d) Availability of Funds
The amount of funds available for promotion will decide the promotional mix. The
companies having huge funds for promotion will favor advertisement and try to cover
wider market. If the funds are available are less than maximum portion of such funds
will be allocated for personal selling in a limited area. These funds may be used for
window display also.

[64]

Internal

External

Internal reasons

Top managements is more conducive to spending on promotions.

Line manager under greater pressure to achieve targets

Justification of expending is easy.

External reason

Increase in number of brand

Greater pressure from trade to liquidate stocks

SP is two type

Trade

Consumer

Trade promotion

liquidating heavy inventories

Persuade retailers to carry stock, carry more usual stock, promote brand
franchise

Consumer promotion

Stimulate purchase

Induce trial

Create new use

Increase repurchase from occasional customers

Reward loyal customers.

Forms the trade promotion

Bulk discounts

Free material

Display windows

Redistribution incentive Shop salesmen incentive

[65]

Form of consumer promotion

Free sample free gift

Coupons

In packs

Price packs

Price off

Bundling offer

While the advertising budgeting are controlled by the manager, SP budgeting usually
are controlled by the sales managers
The more the products quality and its advertising

[66]

CONSUMER FOCUS
Many companies today have a consumer focus (or consumer orientation).This implies
that the company focuses its activities and product on consumer demands. Generally
there are three way of doing this:
1. The customer-driven approach,
2. The sense of identifying market change and
3. The product innovation approach.
The customer-driven approachConsumer wants are the derived all the strategic marketing decision. No strategy is
pursued unstill it passes the teat of consumer research. Every aspect of a market
offering, including the nature of the products itself is derived by the need of potential
consumer the start point is always the consumer .The rationale for the approach is that
there no points spending R&D funds developing products that people will not buy
.History attested to many product that were commercial failures in sprite of being
technology break through.
Former approach of this consumer focused marketing is known as SIVA (solution
Information value and Access,).This system is basically the 4ps remand and reworded
to provide a consumer focus. The SIVA model provided a demand /costumer centric
version alternative to the known 4ps supply side model of marketing managements.
1. product

solution

2. promotion

information

3. price

value

4. Place

access

The four elements of the SIVA model are:

Solution

Information

Value
[67]

Access
RESEARCH METHODOLOGY

Research is an organized enquiry designed and carried out to proved information for
solving a problem
Research methodology is away to systematically solve the research problem, It may
be under stood as a science of studies how research is done scientifically in study
various step that are generally adopted by researchers is study is research problem
along with logic behind them.
RESEARCH METHODOLOGY - In this chapter i present and discuss the
Methodology of my research.I will discus my choice of research purpose As well as
myresearchstrategy further, my data collected method, Data analysis. Finally, i discuss
the validity and reliability of my study. PURPOSE OF RESEARCH: The Purpose Of
an Academic Study Can be Exploratory, Descriptive or Explanatory.
EXPLORATORY STUDIES -This type of study are practical if you wish to clarify
your understanding of a problem Have we should follow the exploratory studies
describes as a method of Findings out What is happening; to seek new insights; to
ask questions and to asses phenomena in a new light

DESCRIPTIVE STUDIES
This type of study is appropriate when you wish to portray phenomena such as events,
situations or a process.
Furthermore, a descriptive study is also appropriate when the problem is Clearly
structured, but the intention is not to conduct research about the Connections between
the causes and symptoms. EXPLANATORY STUDIES this type of study is useful
when u wish to establish casual Relationship between variables. The emphasis in this
sort of study is to

Examine a situation or a problem in order to explain the

relationship Between the variables.

My study is based on Exploratory research

where I had gone through practical study as a survey on agent and consumer
Sample:- The data has been collected by selecting a sample size of 100 Sellers and
150 consumers, and various sampling techniques has been Used to collect data.
Sampling techniques which has been used in Data is Random sampling.
[68]

Research design
The research design are calcified on the base of fundamental objective of the research
Exploratory Research
1. Search of secondary data
2. Survey of knowledge
3. Case study
Conclusive Research
Descriptive and experimentation
DATA COLLECTED METHOD: :
PRIMARY METHOD OR RESEARCH
Primary data are those which are collection for the first time and are those original
characters. Primary data are in the shape of row mate rialto which statistical method is
applied for the purpose of analysis &interpretation primary are been collection in
market by three basic methods:

Survey of person

Observation

Experiment

I have collection primary data by the method survey of person .Because of systematic
getting of data from respondents through questionnaire ,which is object oriented
simple accurate and systematic motivating to respondent and complete in information
concern .

SECONDARY METHOD OR RESEARCH

Secondary method is the source of information from secondary ways such as
Websites, Books, Magazines, and Articles etc. I collected my data in both ways
Primary and Secondary method.
Data Analysis Lucknow Milk Union Ltd Survey
[69]

Area- Gomti Nagar, Indira Nagar, Kapoorthala, Vikasnagar Data Analysis Lucknow
Producers Co-Operative Milk Union LtdSurvey
Area- Gomti Nagar, Indira nagar, Kapoorthala, Vikasnagar Agents Survey Report I
Have meet with around 100 sellers of milk and found the Following information from
the agents answer of the relevant questionnaire. These charts are made according to

[70]

SOURCE OF DATA
Usually the information to solve the problem cannot be found in internet of publish
external record. The research must be depending on primary data, which are collected
scientifically for the study.
Data are mainly these types:
Primary Data
Primary sources refer to data collection directly from the market place like customer,
trades &suppliers. They are often reliable data source &help in over coming
limitations of secondary data.

Primary data is mainly of types

1

census

sample

Questionnaire -

used for survey method

Interview schedule used for exploratory research

Questionnaire:
This inmost important tool for data collection. A questionnaire contains question that
researcher ask his respondents to customer.
Question design

Determine the objective of survey.

Determine the type of questionnaire to use
Decided on question of sequence
Decided the length of questionnaire.
Administrating the questionnaire.

Type of questionnaire
Open ended question
[71]

A type of question that require participants to response in her /his own word without
`being restricts to pre-define response choice is known as open ended question, open,
ended question are structure in the themselves All those proved for un structure
response. There is define structure in the arrangements of the questioning the
questionnaire .The help establishedresponce, gate information increased understand
open ended question act as memory prompt.
Close ended question
Question witch restrict the interview answer to pre- define response option are called
close ended .close ended give responded finite set a specified response to chooses
from such question are demand appropriated acts when the respondents has specific
answer to give when the research has pre define set answer to mind when detail
narrative information is not needed when there is a finite number of way to answer to
question

Binary
Ranking
Choice

Demographic question
There are necessary part of every survey .Responses to survey question can not to be
analyzed until they sorted out according to different charestrisitise pertaining to the
study. This aspect is true for survey that analysis response based on the demographic
characteristics of response, question related to age sex location occupation etc.

Sample:
As ample is selection of unit from entire group called population on universe of
interest. In market a sample is particular segment or part of market &it isfocusof
marketing decision, which many be applied to entire market.
Sample size:
To know the consumer perception about milk product and to determine the demand
of milk product in Lucknow .As ample size of 100 consumer has been taken. Sample
procedure How they are to be selected on reaching different booths the consumer who
appeared accessible with prospects of information where surveyed. We how no
[72]

juddered sample because consumers were fully cooperative &survey according to the
desire of consumer.

LUCKNOW PRODUCERS COOPERATIVE MILK UNION Ltd.

[73]

Report of agent survey

Haves meet of with around 200 seller of milk found the following information from
the agents answer of the relevant questionnaire. These chart made according to the
found data during summer training, for the only 100 questionnaire
.
NO. Of Agent (shop)
120

100

100
80

40

60
40
20
0
Parag

other

Here I have taken taken. Sample size of agents is 100 to understand the total market
share of milk brand .we can see that shop Parag is more than other sh

Sales of milk per day (crate )

[74]

800

790

790

780

770

760

750

748

740
..
730

720

710............
...
Parag

other

Sale of milk per day of parag is 790 crates per day and sale of other milk 748 crate
per day sales of

[75]

I found that availability of parag milk is sufficient according to demand and we can
say that availability of milk is 100%.

[76]

100
90

80

70

60

50

40

30

20

10

0
.

[77]

RODUCT QUALITY OF PARAG MILK

100
90

80

70

60

50

48
40

3024

26
20

10

2
0
.

24% BAD 48%AVERGE 26% GOOD &2%EXCELLENTS

PRODUCT DELIVERY TIME

[78]

54

53

52.3
52
..
51

50

49

48

47.6
47

46

45

44

Product delivery time 52% of the agents say that delivery time of product is good, and
48% agents say that is bad.

Sales of other products of parag

[79]

90

80

70

60

50

40

30

20

10

Curd

Mattha

Ghee

Butter

Panner

All product

Sales of of other product of parag in shops: Curd is 78%, Mattha 70%, Ghee 37%,
Butter 78%, Panner 33%, All product around 8% shop.

SUPERVISOR VISITS

60
[80]

50

40

30

20

10

0
.
Never

sometime

offen

cant say

43% agents say that supervisor visit is never, are 49% agent says some time.

BEHAVIOUR OF DRIVE

70

[81]

60

50

40

30

20

10

...
0
..
Bad

avg.

Good

Quality of Parag milk

[82]

60
50

46

40
30

26
23

20
10
0

Quality of parag milk 23% people say that is quality is bad. 46% say that average
and 26% good.

REPORT OF CUSTEOMER

[83]

70
66

60

48
50

40

33
30
.
20......19........................................................................................................................
.....
10
...
0
..
0-5

5-15

15-30

30above

19%are milk consumer come under 0-5age 33% consumer age is 05-15 48%&15-30
66% 30 above.

PREFRENCE OF MILK

[84]

50
47

45..
.

.40

40...

35
30

25

20

12.5
15

10

parag

other

loose

Questionnaire
Q1. Number of family member?
a

Two (4)

Three(8)

Four (36)

More than four(52)

[85]

60
50
40
30
20
10
0

Q2. Family income?

1

<100000(41)

100000-300000(52)

300000-500000(7)

Above 500000(0 )

[86]

60
50
40
30
20
10
0

Q3. Who takes decision for purchase of milk?

1

Father (32)

Mother(59)

kids (9)

[87]

70
60
50
40
30
20
10
0

Q4. Consumption of the milk in your family in liters.

1
2
3
4

One litre( 61)

Two litres(21)
Three litres(11)
More than three litres(7)
[88]

70
60
50
40
30
20
10
0

Q5. Which type of the milk do you take?

1

Packed(38)

Loose(62)

[89]

70
60
50
40
30
20
10
0

Q6. If loose then

1

Parag ATM (23)

[90]

Milkman (39)

45
40
35
30
25
20
15
10
5
0

[91]

Q7. If packed, which brand do you take?

1

Parag(14)

Amul(23)

Gyan(0)

Others(0)

25

20

15

10

Q8. Which type of milk do you take?

[92]

Gold(orannge)(20)

Tonned(blue)(16)

Lite(violet)(2)

other(0)

25

20

15

10

[93]

Q9. How do you find Parags?

A Quality:
1. Good (44)
2. Average(47 )
3. Bad( 9 )

50
45
40
35
30
25
20
15
10
5
0

[94]

B Price:
1. Low (13)
2. Average( 56 )
3. High( 31)

60
50
40
30
20
10
0

[95]

C Availability:
1. Easily( 67 )
2. Not easily(33)

80
70
60
50
40
30
20
10
0

[96]

Q11. Do you change one brand to other?

1

Yes (36)

No (64)

80
70
60
50
40
30
20
10
0

[97]

Q12. Do you known about pasteurization? It is:

1

Boiling milk (40)

Drinking milk (22)

Destroying Bacteria from milk (38 )

45
40
35
30
25
20
15
10
5
0

[98]

Q13 Do you recognize Parag Logo?

1

Yes(67)

No(33)

80
70
60
50
40
30
20
10
0

[99]

Q14. Your experience with parag:

1

Good(65)

Average( 30 )

Bad( 5 )

70
60
50
40
30
20
10
0

[100]

Q14. Your experience with Amul:

1
2
3

Good (32)
Average( 64)
Bad(4)

70
60
50
40
30
20
10
0

[101]

[102]

FINDINGS
By the help of analysis & interpretation of the data we come to some findings, these
findings \are as follows:

Parag has good market position in the regional market. It holds 52% of market

share. This shows the loyalty of the customers towards the Parag,
Most the customers are satisfied with the quality & availability of Parag

products
Increasing price of parag milk & other products are the big challenges for the
Parag, because these products are available in the marketr at the comparatively

lower price.
Customers want to make the availability of the Parag products nearer to their

home.
Establishment of Parag milk ATM gives the Parag a competitive advantages

and enhance the availability among the customer.

53% of the customers are not satisfied with the price of the Para products.

They suggest the reduction in price of Parag products.

Some customers want to improve the packaging of the parag products.
Most of the customers are aware about the new Parag products from the
retailers shops, that is retailers are the main sources of making the customers

aware about the Parag products.

Some customers want to make available the parag ghee in small volume.
Among the different Parag products demand of flavored milk, mattha & butter

are

high.

[103]

Limitations

Some of the respondent s was not cooperative.

Some respondents were hesitating to give the details.
Biasness is another limitations that the scope of the survey.
The reliability and scope of survey greatly relies on the cooperation of the

respondents.
Due to illiteracy of some respondents, spcifice information could not be
recovered.
Advertisement of other products of parag is very less.
Parag is not expending our sales to the other state.

[104]

SUGGESTIONS
1. More ATM should be established to enhance the availability of Parag milk.
2. Make the customers aware about the parag products through different mode of
advertisement.
3. There should be no leakage in the liquid milk & if these packets should be
replaced.
4. On line information about the parag products & trading should be facilitates
by the company.
5. There should be regular visit for getting the customers feedback about the
Parag products. This helps to know the changing demand of the customers.
6. For fulfilling the increasing demand of milk the company should try to
increases the production.
7. Packaging of the liquid milk should be reusable that helps to reduce the price
of the products,
8. Company should try to provide discount on bulk purchasing and also provide
some offers & schemes for sales promotions.

[105]

[106]

QUESTIONNAIR
USED IN MARKET SURVEY OF PARAG MILK
CONSUMER CONTACT DESCRIPTION
PLEASE ANSWER ALL QUESTIONS ASKED IN THE QUESTIONAIRE AND
SEEK FOR HELP IF ANY THING IS NOT CLEAR OR UNDERSTOOD BY YOU.
NAME OF CUSTOMER:
OCCUPATION:

----------------------------------------------------------------------

ADDRESS:
---------------------------------------------------------------------MOBILE

NUMBER:

---------------------------------------------------------------------No. OF FAMILY MEMBERS: 1 to 3 ( )

Q.no.1: Which brand of milk do you use?
(a) Parag

(b) Amul
(c) Other

)
(

Q.no.2: How do coe to know about Parag milk?

(a) Advertisement

(b) Shopkeeper

(c) Other

Q.no.3: Quantity used by you (In liter)?

(a) 3 liters

(b) 2 liters

(c) 1+ liters

(d) 1 liter

Q.no.4: reason to choose a particular brand?

(a) Home delivery

)
[107]

3 to 5 ( )

More than 5 ( )

(b) Easily Available

(c) Price

(d) Quality

(a) Quality

(b) Price

(c) Availability

(a) Yourself

(b) Home delivery

Q.no.5: Reason for using Parag?

Q.no.6: Reason for not using Parag?

(a) High Price

(b) Non Availability (

(c) Bad test

(d) Not regular supply(

Q.no.7: How do you Purchase milk?

Q.no.8: Response of customer about door delivery?

(a) Yes

(b) No

Q.no.9: What type of Parag milk do you use?

(a) Standard Milk

(c) Toned Milk

(c) Loose Milk

(b) Full cream

Q.no.10: Response of your regarding extra charges to door delivery?

(a) Yes

(b) No

)
[108]

Q.no.11: Change from one brand to another brand?

(a) Yes

(b) No

( )

Q.no.12: Over all experience with Parag?

(a) Excellence
(b) Good
(c) Fair
(d) Poor
Q.no.13: Your suggestion with respect to Parag milk products?
.
.
.

RETAILER SURVEY FROM

[109]

Name of the shop

----------------------------------------------------

Address

----------------------------------------------------

Tel. No.

----------------------------------------------------

Q.no.1: Which are the milks you usually keep in your shop?
(a) Parag

(b) Amul

(c) Mother Dairy(

(d) Other(

Q.no.2: Rate these milks in terms of volume of sales from 1 to 4.

(a) Amul

(b) Parag

(c) Mother Dairy

(d) Other

Q.no.3: Does packing play any role in promoting sales?

(a) Yes

(b) No

Q.no.4: How you sold the milk?

(a) At M.R.P.
(b) Less than M.R.P. (

(c) More than M.R.P. (

Q.no.5: How would you compare the services of Parag and Amul on the following?
(Rank 1 to 4).
(a) Frequency of visit of sales personnel

..

(b) Timely delivery

..

(c) Display support

(d) Any other
[110]

..

Q.no.6: Customer purchase milk because of:

(a) Price

(b) Quality

(c) Availability

( ) Others

(a) Good

(b) Excellent

(a) Good

(b) Excellent

(a) Good

(b) Bad

(a) Parag

(b) Amul

Q.no.7: Behavior of Driver

(c) Bad

(d) Average
Q.no.8: Quality of Parag

(c) Bad

(d) Average
Q.no.9: Product delivery time

Q.no.10: Margin on sales

(a) Yes

(b) No
Q.no.11: Agent originally belongs to

BIBLIOGRAPHY
[111]

1. BOOKS: Kothari C.R

Arun Kumar
2. OTHER SOURCES: India today
Annual report of Parag
WWW.pcdf.com.

[112]