Deepak

PARAS FOODS LIMITED

MARKETING RESEARCH PROJECT ON

A COMPETITIVE ANALYSIS BETWEEN PARAS & OTHER MILK BRAND & OTHER VIEW IN CENTRAL DELHI

MARKET

SUBMITTED UNDER PARTIAL FULFILLMENT OF THE REQUIREMENT FOR TWO YEARS (FULL TIME) POST

GRADUATE DIPLOMA IN BUSINESS ADMINISTRATION SESSION: 2004-2006

SUBMITTED TO: Mr. Z. Abraham Senior manger (sales/marketing) PARAS FOODS LIMITED

SUBMITTED BY: DEEPAK KUMAR ACHARYA

PGDBA –III SEMESTER

GRADUATE SCHOOL OF BUSINESS AND ADMINISTRATIONGREATER NOIDA

ACKNOWLEDGEMENT

In great honor with indebt gratitude I have to thank inspiring guide Mr. G.P. Mishra Lecturer, Graduate School of Business And Administration, who has taken great interest in helping me on and often in successful pursuit of my project. I am very much fortunate to get such a best guide, who encouraged me constantly with good counsel and helped me to complete the project successfully on time.

I take great pleasure in thanking my organizational guide Mr. Z.Abraham, Senior manager (Sales marketing) at Paras Foods Limited, New Delhi, who encouraged me with his expert counseling and guidance for successful completion of research study. I would also like to thank Mr. Sumit Rastogi, Management Trainee at Paras food Limited, New Delhi who took pain for us at every step of training and helped us whoever we required at the time of training.

It is my duty to thank my esteemed director of GSBA, Dr P.L. Maggu for providing me an opportunity to do this research.

I also extend my heartfelt thanks to all the others in the organization and my friends who have helped me in doing this project.

DEEPAK KUMAR ACHARYA

CONTENTS

TITLE OF THE TOPICS

ACKNOWLEDGEMENT FOREWARD

EXECUTIVE SUMMARY

CH. ONE MARKETING RESEARCH

CH. TWO PROFILE OF MILK INDUSTRY

CH. THREE PROFILE OF PARAS

CH. FOURE FUTURE EVENTS OF PARAS

CH. FIVE FINDING AND ANALYSIS-1

CH. SIX FINDING AND ANALYSIS-2

CH. SEVEN CASE STUDIES ON PARAS FOODS

CH. EIGHT CONCLUTION

CH. NINE BENEFITS OF TRAINING

CH.TEN LIMITATION OF PROJECT

CH. ELEVEN BIBLOGRAPHY

CH. TWELVE ANNEXURES

FORWARD

Academics alone cannot sell anything; practically to earth training is required to make a hardcore marketer. As apart of our curriculum we are required to undergo practical training, so that we get exposed to practical side of knowledge.

This report which I have prepared on the PARAS milk has taught me a lot in such a short period, though this is just a tip of an iceberg there are many things which I have to learn more but during this training I have done and learned, which cannot be qualified or categorized in this project report. During this training I studied total market of PARAS FOODS and tried to explore the problems which were faced by PARAS FOODS. I made my level best to provide solution to that problem by this I was getting practical knowledge regarding market and marketers.

This training has not only imparted attitudes and skills I can use more successfully in today’s market place, but is also a great addition to development of my personality.

This training provided me Edge to stand in position to understand market and its constituents. This training helped to understand consumer behavior which is my favorite topic in marketing. Crux of the training is that it was a great addition to development of my personality and to my practical knowledge.

SUMMARY OF THE PROJECT

The topic for my summer training project was” A COMPETITIVE ANALYSIS BETWEEN PARAS & OTHER MILK BRAND & OTHER VIEW IN CENTRAL DELHI MARKET”. While working over this project I came across many facts which company is neglecting. Also the factors that they are neglecting to eat there market share and can give opportunity to competitors. So before competitors capture the market PARAS group should rectify there mistakes. Basic objecting of this report to make aware the company regarding the problems they are facing in the market. And rectify the problem and can sustain there market share and can maintain there goodwill in market.

OBJECTIVE OF THE PROJECT

Ascertain growth opportunities as well as threats. Brand available in the market. Analysis of different brand present in the market. Studying consumer behavior. Pushing up sales and analysis of sale growth. Analysing competency level in the market. Give recommendations to VED RAM & SONS LTD. regarding strategic

positioning of PARAS milk.

CHAPTER ONE-

MARKETING RESEARCH

INTRODUCTION TO MARKETING RESEARCH

Market research and marketing research are often confused. 'Market' research is simply research into a specific market. It is a very narrow concept. 'Marketing' research is much broader. It not only includes 'market' research, but also areas such as research into new products, or modes of distribution such as via the Internet.

DEFINATION OF MARKETING RESEARCHMarketing research is the function that links the consumer, customer, and public to the marketer through information - information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes, and communicates the findings and their implications

TYPES OF BUSINESS RESEARCH

Businesses engage primarily in four types of research:

Marketing research - Marketing research (also called "consumer research") comprises a form of applied study which concentrates on understanding the behaviors, whims and preferences, mainly current and future, of consumers based economy.

Market research - Market research has a broad scope and includes all aspects of the business environment. It asks questions about competitors market structure, government regulations, economic trends, technological advances, and numerous other factors that make up the business environment. Sometimes the term refers more particularly to the financial analysis of companies, industries In this case; financial analysts usually carry out the research and provide the results to investment advisors and potential investors.

Product research - This looks at what products can be produced with available technology, and what new product innovations near-future technology can develop.

Advertising research - This attempts to assess the likely impact of an advertising campaign in advance and also measure the success of a recent campaign.

TYPES OF MARKETING RESEARCH METHOD

Methodologically, marketing research uses four types of research designs, namely:

Qualitative marketing research - generally used for exploratory purposes - small number of respondents - not generalizable to the whole population - statistical significance and confidence not calculated - examples include focus groups , depth interviews, and projective techniques

Quantitative marketing research - generally used to draw conclusions - tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population - involves a large number of respondents - examples include surveys and questionnaires.

Observational techniques - the researcher observes social phenomena in their natural setting - observations can occur cross-sectionally (observations made at one time) or longitudinally (observations occur over several time-periods) - examples include product-use analysis and computer cookie traces

Experimental techniques - the researcher creates a quasi-artificial environment to try to control spurious factors, then manipulates at least one of the variables - examples include purchase laboratories and test markets

SAMPLE DESIGN

It is definite plan for obtaining a sample from a population dealing with any type of milk, loose or branded pouched milk. The type of sampling used is random sampling used is random sampling design (RSI).The respondent in the sample include milk consumers and retailers.

DETERMINING THE SAMPLE DESIGN

All the items consideration in any field of inquiry constitutes a 'universe' or 'population’. A cockpit enumeration of all the items in 'population' is known as a census inquiry when all the items are covered no element of chance is left and highest accuracy is obtained. But in practice this both may be true. Even the slightest element of bias in such and enquiry will get larger and larger as the no. of observation increases. Moreover, there is no way of checking the element of bias or its extent except through a re-survey or use of sample checks. Besides, this type odd inquiry is not possible in practice in many circumstances. For instance, blood testing is done from universe for study purpose. The items so selected constitute what is technically called a sample.

The researchers must decide the way of selecting a sample or what is popularly known as the sample design. In other words, a sample design is a definite plan determined before any data are actually for obtaining, a sample from a given population. Samples can either be probability samples are non-probability samples. with probability sample each element has a known probability of being included in the sample but in non-probability sampling the researcher is not allowed to determine this probability samples are those based on sample random sampling, stratified, cluster/area sampling whereas non-probability are those based on convenience sampling, judgment sampling and quota sampling techniques. A brief description of the sample designs is as follows:

SIMPLE RANDOM SAMPLING

This type of sampling is also known as chance sampling or probability sampling where each and every item in the population has an equal chance of inclusion in the samples, in case of finite universe, has the same probability of being selected. For example, if we have to select a sample of 300 items from a universe of 15000 items, then we can put the name for the numbers of all the 15000 slips of paper and conduct a lottery. Using the random numbers tables is another method of random sampling. To select the sample, each item is assigned a number from 1 to 15000.Then, 300 five digits random numbers are selected from the table. To do this we select random measurements, or the days, with the help of which they examine the truth contained in the hypothesis.

But in the case of a survey, data can be collected by any one or more of the following ways:

By observation:-This method implies the collection of information by way of investors own observation, without interviewing the respondents. The information obtained relates to what is currently happening and is not complicated by either the past behavior of future intentions are attitudes of respondents. This method is no doubt an expensive method and the information provided by this method is also very limited. As such this method is not suitable in inquiries where large samples are concerned.

By mailing or questionnaires: - the researcher and respondent do not come in contact with each other if this method of survey is adopted. Questionnaire is mailed to the respondent with a request to return after completing the same. It is most extensively used in various economic and business surveys. Before applying this method, usually a pilot study for testing the questionnaire is conducted which reveals the weakness? If any, of the questionnaire.

Questionnaire to be used must be prepared very carefully so that may prove to be effective in collecting information.

ANALYSIS OF DATA

After the data have been collected, the researcher turns to the task of analyzing them. The analysis of data requires a number of closely related operations such as establishment of categories, the application of these categories to raw data through coding, tabulation and then drawing, statically inferences. Coding operation usually done at this stage through which these categories of data are transformed into symbols that may be tabulated and counted. Editing is the procedure that improves the quality of the data for coding. With coding the stage is ready for tabulation. Tabulation is a part of the technical procedure that improves the quality of the data in form of tables.

Analysis work after tabulation is generally based of the computation of various percentages, coefficients, etc. by applying various well defined statically formulas. In the process of analysis, relationships of differences supporting or conflicting with original or new hypothesis should be subject to test of significance to determine with validity data can be include any conclusion.

COLLECTION OF DATA THROUGH QUESTIONNAIRES

This method of data collection is quite popular, particularly in case of big inquiries. It is being adopted private researchers, and workers and private and public organizations and even government. In this method a questionnaire is sent (usually by post) to the person concerned with a request to answer the question and return the questionnaire.

The method of collecting data wise the questionnaire to respondents is the most extensively employed in various economy and business surveys. The merits claimed on behalf of this method are as follows:

There is low cost even when the universe is large and is widely spread geographically.

It is free from the bias of the interviewer; answers are in respondent's own words.\ Respondents have adequate time to give well thought out answers. Respondent, who are not easily approchable, can also be reached convently. Large samples can be made use of and thus the results can be made more

dependable and reliable.

THE MAIN DEMARITS OF THE SYSTEM

Low rate of return of the duly filled in questionnaire; bias due to no response is often indeterminate.

It can be used only when respondents are educated and cooperating The control over questionnaire may be lost once it is sent. There is built in flexibility because of the difficulty of amending the approach

once questionnaire have been dispatched. There is also possibility of ambiguous replies or omissions are difficult. It is difficult to know whether willing respondents are truly representatives. This method is likely to be slowest of all.

Before using this method, it is always advisable to conduct 'pilot study' for testing the questionnaires. In a big inquiry the significance of pilot survey id felt very much. Pilot survey is infact the replica and rehearsal of main survey. Such a survey, being conducted by expert, brings to the light the weakness (if any) of the questionnaire and also of the survey techniques. From experience gained in this way, improvement can be affected.

DATA COLLECTION

DATA COLLECTION INSTRUMENT

The instruments used for collection of data are:

1. Questionnaires. 2. Oral discussions

DATA TYPE

Two types of data have been collected for analysis.

PRIMARY DATA

It has been collected with help of structured non-distinguished questionnaires, which were personally administered. Closed and open-ended question were used to get the desired information.Quetionnaire were designed for retailers. Important scales and ranking were used for collecting data.

SECONDARY DATA

It has been collected with the help of internet and oral discussions. It is used for a brief history of liquid milk industry.

SAMPLING DESIGN

It is a non-probability convenience sampling.

SAMPLE SIZE : Consumers 200

SAMPLE AREA : Delhi Region

AREA COVERED : Vikaspuri, Hari Nagar, Paschim Vihar, Janakpuri

CHAPTER TWO-

PROFILE OF MILK INDUSTRY

INTRODUCTION TO INDIAN DAIRY INDUSTRY

The basic strength of the Indian economy is agriculture on which seventy percent of thePopulation depends for their livelihood. And apart of it is the Indian dairy industry.

INDIAN DIARY INDUSTRY IN 1940s

Inferior quality of locally marketed milk. Heavy dependence on imports. Unorganized production and processing. The rich dairing heritage being eroded

FORMATION OF NATIONAL DAIRY DEVELOPMENT BOARD

The national Dairy development board was created to promote, finance and support producer-owned and controlled organizations. NDDB’S programmed and activities seek to strengthen farmer cooperatives and support national policies that are favorable to the growth of such institutions. Fundamental to NDDB’s effort are cooperative principles and the Anand pattern of Cooperation.

DAIRY COOPERATIVES

Dairy Cooperatives account for the major share of processed liquid milk marketed in the country. Milk is processed and marketed by 170 milk Producer’s Cooperative Unions, which federate into 15 states Cooperative Milk marketing Federations. Liquid milk it accounts for 90 per cent of the revenue of cooperatives. The MNCs and private players, which were earlier only into milk products, are now seriously getting into the liquid milk sector. They realize that money is in liquid milk. Whoever has access to cheap milk eventually wins the battle in the products business. You can go and buy standard marketing, brand building experience.

The challenge for cooperatives is not to be competitive to export but to be competitive to expand their market (for liquid milk) which has a limited purchasing power. Those that are buying milk today are not going to be buying much more. Cooperatives have to bring the price down for those who cannot afford it. And only if they do it will it ensure that imports don’t come in. The real challenge is how to bring prices down, how to reduce cost’s as the village level, in areas like transportation. Every paisa now counts.

At the heart of the Indian dairy revolution stand the Indian farmers with two toFive animals that produce some of the cheapest milk in the world by feeding his animal’s mostly agriculture waste like star. If he expands his operations and herd and starts buying costly feed he will lose his competitiveness. So how will milk production rise without raising costs? By taking the cooperative dairy revolution to where it is still weak, the east and north-east of the country. This will help fight poverty there, raise their own purchasing power for milk and competitive Indian costs for another ten years. If you wish to run your business professionally and competitively you have to first benchmark your costs and stabilized quality at a very high level. That’s the tough part. Then you hire a brand consultant, evolve a brand strategy and get marketing experts to run the promotions and do the selling. The key elements are an expanding supply of cheap milk and attention to quality.

The Dairy Board’s programmers and activities seek to the strengthen the functioning of dairy cooperatives, as producer-owned and controlled organization’s. NDDDB supports the development of dairy cooperatives by providing them financial assistance and technical expertise, ensuring a better future for India’s farmers.

Over the years, brands created by cooperatives have been synonymous with quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan) Nandini (Kerala) and gokul (Kolhapur) are among those that earned customer confidence.

SOME OF THE MAJOR DAIRY COOPERATIVES FEDERATION IN INDIA

Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF). Bihar State Cooperative Milk Producers Federation’s Ltd (COMPFED). Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF). Haryana Dairy Development Cooperative Federation Ltd (HDDCF) Himachal Pradesh State Cooperative Milk Producer’s Federation Ltd

(HPSCMPF). Karnataka Cooperative Milk Producer’s Federation Ltd (KMF). Kerala State Cooperative Milk Producer’s Federation ltd (KCMMF). Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF) Maharastra Rajya Sahakari Maryadit Dugdh Mahasangh (MAHASANGH) Orissa state Cooperative Milk Producer’s Federation Ltd (OMFED) Pradeshik Cooperative Dairy Federation Ltd(up) (PCDF) Punjab State Cooperative Milk Producer’s Federation Ltd (MIlKFED). Rajasthan Cooperative Dairy Federation Ltd (RCDF) Tamilnadu Cooperative Milk Producer’s federation Ltd (TCMPF) West Bengal Cooperative Milk Producer’s Federation Ltd (WBCMPF).

MILK BUSINESS IN DETAILS

WHAT IS MILK?

Milk is a high value food. It supplies body building proteins, bone forming Minerals, and health giving Vitamins and furnishes energy giving lactose and Milk Fat in an easily digestible and assailable form.

DIFFERENCE BETWEEN MILK AND BUFFALO MILK

Constituents Cow milk Buffalo MilkFat 3-4% 5-6%

SNF 8.5% 9%Colour Yellowish White

TYPES OF MILK

Variation in different types of milk is due to the difference in their Fat and SNF content.

Type of Milk Fat% SNF%Full Cream Milk 6.0 9.0Standardized Milk 4.5 8.5Toned Milk 3.0 8.5Double Toned Milk 1.5 9.0Skimmed 0.1 9.0

WHAT IS PASTEURISATION?

It is a process of breaking down fat globules of larger size to such a extent that after 48 hours of storage no visible ice cream separation occurs on the top. This provides brighter appearance, heavier body and richer flavors homogenized milk produces soft curd.

WHAT IS STERLIZATION

It is the process of heating milk to a temperature at 100 degree or above for such lengths of time that it remains fit for human consumption for at least seven days at room temperature.

DIFFERENCE BETWEEN LOOSE MILK AND POUCH MILK

Category Loose Milk Pouch MilkPasteurization Non pasteurized contains

pathogenic micro(organism carrying disease such as cholera, typhoid, jaundice)

Pasteurized, pathogenic micro-organism is destroyed.

Consistent Quality And Quantity

No standardization, frequent fluctuations.

Standardizes process (according to ISO 9002 and HACCP), and avoid fluctuation.

Adulteration No norms for collection, storage, distribution etc., so prone to adulteration

Strict norms for collection, storage, distribution etc so on adulteration

Nutritional Factor

Due to the adulteration of dirty water, urea, vegetable oils etc, the milk is very harmful for health

It contains the right amount of fat, carbohydrates, proteins, calciumAnd vitamins, which are very required for your good health

TasteBland taste due to adulteration

Tasty, thick and creamy.

Availability Scarce availability during summers and rainy season

Available throughout the year.

Price Frequent fluctuation Consistent for a longer period

WHAT IS SYNTHETIC MILK?

Synthetic milk is manufactured by adding urea, vegetable oil, detergents, Soya proteins; sucrose as sweetening agent, salt etc. It is the most dangerous substitute of milk being sold in the Delhi markets to meet the demand supply gap. It is very similar looking, product and is very difficult to differentiate visually. It has long term side effects and is very harmful for the health of any consumer.

FDI PROSPECTS IN INDIAN FOOD PROCESSING INDUSTRY

Foreign direct investment of around US$1 billion has already been approved in India's food processing industry since 1991.

Changing lifestyles, breakdown of the joint-family system, increasing number of working wives and Western influence (via TV channels) in the urban areas are fuelling a demand for packaged foods.

India already has all the requirements for a head-start in the food-processing industry. Basic materials such as food grains, pulses, vegetables and meats (non-beef) can be sourced locally or easily imported if local availability is inadequate.

Foreign investors can own 100 per cent equity in plants they set up. However, it is advisable to take a local partner.

Many Indian firms are eagerly seeking foreign partners for joint-ventures to avail of their technological advantage.

Supermarkets are just beginning to appear in India's big cities and this is the time for international chains to set a foothold. Competition will only increase with time.

There has been some civilized resistance from ultra-nationalistic quarters of opinion to foreign food products. This resistance will be less if a local partner is involved.

India's liberal intelligentsia is gradually building the opinion that foreign investments in the processed food sector will benefit rural agriculture, thus beating the nationalists with their own slogans. The liberal intelligentsia is gradually prevailing.

DAIRY SECTOR SHIFTING FOCUS ON ETHNIC PRODUCTS

THE dairy industry is witnessing rapid changes. In search of better returns, the industry is widening its focus to include traditional milk products, and these are emerging as new profit centre for the organized sector.

As of now, ethnic dairy products account for 90 per cent of all dairy products consumed in India, according to Mr. P.R. Gupta, Editor, and Technology of Indian Milk Products.

A Dairy India publication, this handbook on process technology modernization has been authored by dairy professionals such as Dr R.P. Aneja, former Managing Director of National Dairy Development Board (NDDB) and President of the Indian Dairy Association; Dr B.N. Mathur, Director, National Dairy Research Institute, Karnal; Dr R.C. Chandan, President of Global Technologies Inc; and Mr. A.K. Banerjee, Dairy Consultant and former Managing Director of the Bihar State Dairy Corporation.

According to the book, despite the mass appeal that traditional sweets have, the organized sector had confined itself to Western products such as milk powder, cheese, table butter and ice cream because technologies were available for their mass production.

However, over the last two decades, institutes such as the National Dairy Research Institute and NDDB have made possible assembly line production of ethnic dairy products such as shrikhand, gulab jamun, paneer, kulfi, mishti doi, dahi and lassi.

While established names in the Indian dairy industry such as Amul, Nestle, Britannia and Mother Dairy have made deep inroads into this booming market, small companies are following by example in regional markets.

Some examples are Aarey in Maharashtra, Aavin in Tamil Nadu, Nandini in Karnataka, Vijaya and Visaka in Andhra Pradesh, Milma in Kerala, KC Das in Kolkata and Bangalore, Sugam in Vadodara, Mahanand in Maharashtra, Verka in Punjab, Parag in UP, Sneha in MP and Pars Dairy Farm in Mumbai.

The book also says that a similar trend has been sweeping the dairy world outside India.

DIARY PRODUCTS EXPORT SET TO CROSS RS 500 CRORE GCMMF PEGS EXPORT TURNOVER AT RS 125 CRORE

DAIRY product exports from the country are poised to cross the Rs. 500-crore mark for the first ever time during the current fiscal.

A large chunk of this would come from edible casein, exports of which are alone expected to gross Rs. 350 crores. "This has been a very good year for casein exports, as international prices have been ruling high," said Mr Gajinder Kumar, Managing Partner of VRS Foods Ltd.

According to Mr Harsevak Singh, CEO of Mahaan Proteins Ltd, casein exports would touch about 15,000 tonnes during 2004-05. "The average export realizations this year has been around $5,600 per tonne this year free-on-board, as against $4,200 per tonne in 2003-04 and $3,150 per tonne the year before," he noted. At about Rs 240 per kg, the value of exports would be in the region of Rs. 360 crores - an all-time high.

Casein is basically a group name for the dominant class of proteins in milk, responsible for its viscosity and white colour. Roughly 82 per cent of the total protein present in milk is constituted by casein, with the remaining 18 per cent being whey proteins. The overall casein content in milk ranges from 3-3.5 per cent.

Besides VRS Foods and Mahaan Proteins (both Delhi-based), there are two other manufacturers of export-grade edible casein in the country - Dynamics Dairy Industries Ltd, at Baramati, and Cepham Milk Specialties Ltd, at Chandigarh.

While VRS Foods alone would export 4,000 tonnes during the current fiscal, the other three are expected to ship roughly 3,500 tonnes each.

Exports of casein and its derivatives started picking up sometime in the mid-1990s, rising from 912 tonnes (Rs. 13.22 crore) in 1997-98 to 2,108 t (Rs. 53.25 cr.) in 1998-99, 4,784 t (Rs. 82.67 cr.) in 1999-2000 and 8,224 t (Rs. 158.55 cr.) in 2000-01.

The subsequent years though registered a decline to 6,336 t (Rs. 123.74 cr.) in 2001-02, 7,373 t (Rs. 124.90 cr.) in 2002-03 and 4,223 t (Rs. 76.83 cr.) in 2003-04.

"Last year was bad because the acute milk shortage in the country meant that till November 2003, we could not even operate our plants. This year, not only has domestic milk availability gone up, but also global prices have risen to record levels," Mr. Singh pointed out.

Casein prices largely reflect international prices of skimmed milk powder (SMP). These, in turn, are dictated by the `market management' measures of the European Community (EC).

When SMP stocks are high, the EC grants increased aid for production of casein from skimmed milk, so as to encourage the production of an alternative product and thereby, discourage the production of surplus SMP.

"Currently, international SMP prices are above $2,000 per tonne, which automatically reduces production of SMP in European Union," Mr. Kumar said.

According to him, most of the casein exported by the country goes for the production of sodium caseinates, used in the food industry for enhancing nutritional as well as functional qualities.

Caseinates are used as binders in sauages and other processed meats and also as emulsifiers, helping fats to stay suspended in water based products such as milkshakes, coffee creamers, and ice creams.

SWOT ANALYSIS OF INDIAN DAIRY INDUSTRYStrengths:

Demand profile: Absolutely optimistic. Margins: Quite reasonable, even on packed liquid milk. Flexibility of Tremendous. With balancing equipment, you can keep on adding to

your product line. Availability of raw material: Abundant. Presently, more than 80 per cent of milk

produced is flowing into the unorganized sector, which requires proper canalizations.

Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years.

Weaknesses:

Perishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life.

Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields.

Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved.

Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why can’t we sell other dairy products too? Moreover, it is only a matter of time before we see the

emergence of a cold chain linking the producer to the refrigerator at the consumer’s home!

Competition: With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market is large enough for many to carve out their niche.

Failure is never final, and success never ending”. Dr. Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of ‘never ending successes! If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped:

Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition:

Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building.

Addition of cultured products like yoghurt and cheese lend further strength - both in terms of utilization of resources and presence in the market place.

A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunities

Yet another aspect can be the addition of infant foods, geriatric foods and nutritional.

Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular.

Threats:

Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance.

The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far outweigh ‘weaknesses’ and ‘threats’. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics).

The Indian dairy industry, following its delicensing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and cost-effective processing facilities and

innovativeness in the market place. All that needs to be done is: to innovate, convert products into commercially exploitable ideas. All the time keep reminding yourself: Benjamin Franklin discovered electricity, but it was the man who invented the meter that really made the money!

CHAPTER THREE-

PROFILE OF PARAS FOODS

ABOUT PARAS FOODS LIMITED

Paras proudly present itself as a premium brand in the Indian dairy industry. A list of our nutritious and premium quality products include milk, pure ghee and skimmed milk powder in bulk and consumer pack, dairy whitener, table butter, white butter, dematerialized whey powder, casein edible and industrial grade.

The taste, flavors and excellent quality of our SMP-ISI & pure ghee have made them as the brand leader in the market. The major objective of our business is to enhance the profitable production of dairy products.

We are in the business of milk for more than 40 years. Our milk is entirely collected from village level collection that are developed by us. The quality of our milk, regularity of supply and value of commitment have made us the hallmark in our sphere of operation. Today we are the second largest distributors of milk in Delhi metro.

The taste and flavors, low sodium level. Low ash, content and low plate count of our dairy products has fetched us accolades of our clients. Our products have found wide acceptance with countless prestigious institutions. it includes Nestle India Limited, SmithKline Beecham, Hindustan Lever Limited, Mother Dairy, Kotkatta and countless others.

Ch. Ved Ram, the founder and promoter of our company is one of the connoisseurs in the dairy farm industry. Ch. Ved Ram & sons started as our partnership company in April1986.Our first unit was established in 1987 under company’s name VRS Foods Limited and since then we have maintained our position as the brand leader.

In tune with the rapidly changing technology, production units are well armed with the latest equipment. These facilities enables us to cater to the needs of our clients by selling over 2, 50,000 liters of milk per day in Delhi metro.

Our wide network backed by a team of dedicated and skilled professionals is ready on its tows to provide you fresh and nutritious dairy products. we always welcome all your queries and leave no stone unturned for your utmost satisfaction.

CORPORATE OVERVIEW

An organization involved in quality milk collection practices since 1960.

A very strong rural procurement network comprising of more than 3000 villages across western Uttar Pradesh in North India arising after immense infrastructure investment in the rural areas by the organization. Five state of the art manufacturing units complying with ISO 9001-2000 and HACCP standards of system implementation. Total handling Capacity 1.9 million ltrs. a day. Largest marketers of Polypack milk in Delhi in corporate sector.

Only player in the North India to market bactofuge quality milk. First player in private sector to offer Homogenized toned milk through automatic milk vending machines and FRP tanks in North India. A major exporter of edible grade casein and other milk products.

History: The organizational history reflect back to 1960, when the procurement of milk started with 60 ltrs. of milk. The only fundamental that worked right from day one is the quality, which got reinforced everyday of progress and got reflected as victory through quality.

VISION: PARAS will continue to grow as an FMCG major, delighting national and international customers with quality products and services

VALUES: 

Trust Openness Commitment Integrity Growth Orientation Quality

Value For Money Customer Orientation

BUSINESS OPPORTUNITIES

NATIONAL

Paras is the second largest distributor of milk in Delhi and catering to its customer since the last forty years. We are looking forward to reliable business partners including dealers and collaborators for effective business. We operate in close association with the dairy expert and continuously upgrade the quality of our products.

get your act together to make the most of our position in the dairy market. You will be provided with all the necessary facilities and expert guidance that you need to start up a retailer booth for our dairy products.

We are searching for collaborators with existing techno-commercial infrastructure opportunity and you will find it hugely rewarding and fruitful.

INTERNATIONAL

India offers countless opportunities in the field of dairy industry, which is still flourishing. Encouraged by success in the domestic market, Paras is expanding the horizon of its business and looking forward to the importers and foreign buyers for its dairy and industrial products.

Paras group enjoys the service of a state-of-art production unit for the manufacturing of acid casein and dematerialized whey powder. Its leading position in the domestic market will give you an edge over the others. Grab this incredible opportunity and begin a rewarding business relationship with the Paras group, which is the hallmark for the quality of milk, regularity of supply and value of commitment.

QUALITY

VRS Foods, a part of PARAS group has fetched the accolades of its client by providing premium quality edible casein and whey powder. The export oriented and import substitute project are at par with the best in the international market.

Casein is an integral constituent of milk, which is required for the development of every human being. It is vital source of energy and builds immunity against the foreign bodies that are responsible for causing various fatal diseases.

Quality at affordable prices is the mantra in our production unit. It is equipped with latest equipment and trained and skilled staff. We understand that the essence of good product quality lies with the initial raw milk quality. Our milk procurement process surpasses stringent quality tests that ensure premium quality.

The acid precipitation of milk and subsequently purifying the protein prior to its drying is achieved by a precise control over washing cycles, washing pattern and the use of dematerialized water. The monitoring of curd quality at various stages of washing and drying yield the product with the requisite parameters that meets the demanding international market.

We have pioneered the manufacturing of whey powder with dematerialized level up to 90%.Minerals are removed through selective nano filtration and Ion Exchange process. Dematerialized whey is then evaporated and crystallized before spray drying. Rigid quality control conditions are maintained to minimize to highly nutritious whey proteins.

PROCUREMENT PROCESS

In western UP milk production is scattered with small-scale producers. A quick survey done in the recent past reveals the fact that the average land holding is very small. The number of family members is high as compared to the buffaloes that a family owns. The number of buffaloes is less with 20%-50% dry or pregnant, thus has to feed such animals that are not in location.

The average milk yield per lactation of buffaloes is 300 days ranges between 900kgs to about 1500kgs.producers retain the 25% of the produced milk and rest of the 75% is marketing surplus. Thus these quality of surplus milk available with a producer ranges from 2 kgs-10 kg. per day. An adequate system of organizing milk procurement, quality control, quick testing and chilling and transportation is required in most of the villages.

Keeping this in view VRS Foods already organized about 500 village centers. Every center is located in pucca room owned by the company or hired locally and provided with a small laboratory for conducting quick platform test including fat%, SNF%, acidity test, COR, BR and CNR on which payments is made. Company has also provided running water for the cleaning of utensil, equipment and storage of milk.

During the flush season at each village 300kg to 700 kg of milk is collected. As par the time schedule, small size vans collect the milk and transport is quickly to the nearest chilling center/dairy plant. In these plants milk is cooled to a temperature of less than 9 degree centigrade to preserve its quality.

At certain centers facilities for the pre-cooling of milk, is also available. It also avoids any rise in acidity while storage and transportations.

PARAS PRODUCTS Bactofuged Milk Bactofuged - Homogenised Toned

milk through milk vending machine and FRP tanks.

  Bactofuged Full Cream Milk  Bactofuged Toned Milk  Bactofuged Double Toned Milk  Bactofuged Paras Nanadan - A low fat

milk

Dahi Paras Dahi & Misti Doi

Lassi Sweet & Salt

Paneer

Muzzarella Cheese

UHT Processed Milk Homogenized- UHT processed Tonned and Double Tonned milk in Ceka Pack

Desi Ghee Desi Ghee in Pouches, Refill Pack and Tins

Skimmed Milk Powder

Paras Instant Dairy Mix

Dematerialized Whey Powder

Edible Casein

   Aqua Mineral 

International Skimmed Milk Powder

Edible Grade Casein

Dematerialized Whey Powder

FUCTIONAL APPLICATION

CASEIN:

INTERNATIONAL QUALITY EDIBLE CASEIN For nutraceutical, Health foods, Dietetic and Infant Food Application. For conversion in caseinates, hydrolysis’s. For Medical Nutrition and Geriatric Foods. For lactose free food formulations. For sports Foods and weight Management formulas. For Meat Products, Baked goods application For leather chemicals, paper chemicals, media preparations etc. Paras Acid casein finds a ready market in Germany and also caters to the

domestic market.

WHY NAD WHEY PRODUCTS

WHY POWDER DEMINERALISED 90%

For Infant Food Formulae, closest to the mothers milk. For life style and dietetic food formulation etc.

WHY POWDER DEMINERALISED 70%

Cost effective substitute to SMP for BAKERY, confectionary and Ice cream applications.

Excellent bulking agent for soup, sauces and salad Dressings.For Dairy mixes, coffee whitener, Frozen dessert spice and seasoning blends, etc

PARAS AQUA MINERAL WATER

Paras aqua mineral is hygienically packed, mineral balanced, multistage micro-filtered, disinfected by ultraviolet treatment and ozone mixing. Mineral are balanced by using eco friendly technology "reverse osmosis system".

Company has well equipped physio-chemical and microbiological laboratory all parameters are tested by trained chemist at different size of bottles by automatic machines including bottle rinsing filling and capping machines. Company has in house arrangement of manufacturing. The present capacity of bottle manufacturing is 2,000 bottles per hour.

PROCESS OF MANUFACTURING: Raw water is drawn from underground protected spring. water is stored, disinfected and passed through profilers example multigrade filter, carbon filter softria. After prefilteration water enters in reverse osmosis system and mineral continents are balanced as per IS-14543 requirements. Product is disinfected by using ultraviolet technology and ozone mixing. ozone also provide safety to product during storage and increases the shelf life.Paras Aqua mineral is available in the following packages:

20 litr. pet and polycarbonate returnable bottle. 1 litr. disposable bottle 500ml. disposable bottles. 250ml. disposable HIPS glasses

INTRODUCTION OF UHT MILK AND BACTOFUSED MILK IN INDIA BY VRS FOODS LIMITED

Have a glassful of our Paras Milk daily in the morning and start your day with a new zeal and energy. It is one of the most essential bone-growing nutrients and the best source for calcium and vitamin D. Paras milk doesn't contain any artificial ingredients and is mostly collected from the Village Level Collection Centers that makes it an authentic product.

Paras fresh milk represents Good Hygienic Quality at source of milk collection. Paras Milk is collected from milk sheds of western UP belt with stringent quality control that ensures clean hands, clean utensils, clean utensils, clean hygienic sanitation at the time of milking the milks cattle, during storage and transportation to chilling centers, on way to hi-tech ISO 9001 and HACCP certified Paras Milk Plants at Gulaothi and Sahibabad.

Paras Fresh Milk ensures that the process of collection of milk is 100% safe and free from harmful additives like sodium hydroxide (for preserving), urea (for forming and thickening), calcium carbonate (for whitening) and even tap/well water (for enhancing volume).

Paras Fresh Milk goes though the process of BACTOFUGATION before UHT treatment to ensure physical removal of high heat resistance spores, which otherwise sustains high heat treatment.

Paras Fresh Milk gives you the complete goodness and freshness of milk with all vital nutrients necessary for human growth. There is No-Reconstitution. There is No Powder Added Only fresh, pure and safe milk. Ready to consume. That Tastes Good Looks Good and Smells Good.

PARAS GROUP LAUNCHES ‘BACTOFUSED’ MILK

AFTER UHT milk, it is `bactofuged' milk that is making waves in liquid milk marketing. First it was the Rs. 360-crore Chennai-based Hatsun Agro Products Ltd (makers of `Arun' ice-cream and `Komatha' and `Arokya' milk), which, nearly four years back, introduced the `bacteria clarification' process to remove `all pathogenic bacteria' in order to ensure that its milk was `absolutely safe' for drinking. Now it is the turn of the Delhi-based Rs. 400-crore Paras group (Vedram & Sons), which sells about 2.5 lakhs litres per day (LLPD) of liquid milk in the National Capital Region under the `Paras' brand, to launch milk that is "not just pasteurized, but bactofuged". Mr. Gajinder Kumar, Managing Partner of Vedram said: "We are the first and only dairy in North India to use bactofugation technology that makes our milk 100 per cent free of harmful bacteria." What is bactofugation and how is it different from pasteurization or ultra high temperature (UHT) treatment? Pasteurization involves par-boiling (heating below boiling point) the milk to about 75 degrees Celsius for roughly 15 seconds using continuous-flow `high temperature-short time' (HTLT) process heat exchangers. This process kills more than 90 per cent of the bacteria, especially the harmful pathogens such as Mycobacterium bovis (which causes bovine tuberculosis that also affects humans) and Salmonellae (responsible for gastrointestinal diseases and typhoid fevers). Pasteurization does not, however, destroy the spoilage bacteria that cause curdling. Also, it leaves out certain heat-resistant bacteria (including dead bacteria) and spores (seeds) that can break down the milk proteins or, in certain cases, cause `sweet curdling'. To address this, dairies resort to UHT treatment, which involves heating the milk up to 137 degrees Celsius for two seconds and then packaging it under aseptic conditions.Milk processed in this way is virtually sterile and can be kept un-refrigerated in tetra packs for several months. "But UHT milk is expensive because it requires packing the milk in tetra packs, which costs about Rs. 6, compared to just 50 paisa for ordinary plastic pouches," said Mr. Kumar. Bactofugation, he claimed, achieves the objective of getting rid of all heat-resistant bacteria and spores without entailing much additional cost. The bactofuged milk also has a higher shelf life than the normal pasteurized milk, he said. "We are making available bactofuged milk at the price at which other dairies are offering pasteurized milk."

Unlike pasteurization and UHT treatment, bactofugation is a non-thermal process for removing bacteria, particularly the heat-resistant spores, using a high-speed centrifugal separator or `bactofuge'. Essentially, it employs the principle of expelling the bacterial spores (which are heavier than milk) through centrifugal force action. "There is nothing new to this technology. Our dairies in Mehsana and Gandhinagar have been using bactofuges for the last five years. But we never felt the need to project this as a USP," said Mr. R.S. Sodhi, General Manager (Marketing), Gujarat Co-operative Milk Marketing Federation (GCMMF or Amul). Since GCMMF is an exporter of milk powder and European Union regulations require the product to be completely free of dead bacteria, "we have been using bactofugation as a matter of course". Moreover, the need for bactofugation really arises only for making cheese or other cultured products. "The primary objective of this treatment is to remove heat-resistant spores like those of butyric acid bacteria, which may germinate during the ripening of hard cheeses and negatively affect product quality. For liquid milk, pasteurization is more than sufficient since it destroys the major disease-causing micro-organisms," a dairy technologist said, quoting extracts from Ionel Rosenthal's Milk and Diary Products: Properties and Processing, a standard industry reference manual. Mr. Sodhi claimed that the bactofuged milk campaign used by Paras was in response to GCMMF's hard-sell about its milk in Delhi being `fresh' and not reconstituted from milk powder.

COMPETITORS OF PARAS FOODS LIMITED

MOTHER DAIRY

AMUL

PARAG

GOPALJEE

PARAM

DELHI MILK SCHEME

OTHER MAJOR LOCAL PLAYERS

PARAS TAKES ON MOTHER DAIRY IN DELHI ICE-CREAM MARKET

THE Delhi ice-cream market will have a new player with the Paras brand making a foray into the segment. Positioning itself on a par with Mother Dairy's ice-cream products, makers of the Paras brand, the Rs. 350-crore VRS Foods, has already set up a new ice-cream plant in UP by importing machinery from Alfa Laval of Sweden. Speaking to Business Line, Mr P.N. Kanth, General Manager, Marketing, VRS Foods, said, "Our ice-cream range will straddle all segments from the premium to the lower end of the market. We will be pricing the products on a par with Mother Dairy and will be cheaper than the market leader, Kwality Walls." Currently, Kwality Walls pegs its offerings at a near 20 per cent premium compared with Mother Dairy. The company has already built up a cold chain for distributing its refrigerated items such as milk and yoghurt and will be riding the same chain for its ice-creams. Besides the company also has the advantage of sourcing the milk for making its

ice-creams from its existing plant at Sahibabad in UP. Says Mr Kanth, "Today we have our own facilities to procure 2.5 lakhs liters of milk per day with several chilling centers. The milk used will be our own and there will be no outsourcing of milk to manufacture our ice-creams." In fact, VRS Foods is also actively eying taking over milk dairies in Maharashtra and Chennai to supply its Paras brand of milk in pouches in these parts. Besides it is also in talks with the West Bengal Dairy Federation to market the Paras milk brand with the help of milk dairies in the region. Primarily a dairy brand, Paras has also stretched its brand into yoghurt. Other recently introduced products include white butter and mozzarella cheese and paneer. Besides these products, VRS Foods has also launched a mineral water and soda brand under the Paras franchise this year. Today, in spite of having an exhaustive retail network of 800 stockiest reaching out to two lakhs retail outlets across the country, its reach in the southern states is still limited due to the lack of a cold chain and manufacturing facilities. It also intends strengthening its retailing activities by installing vending machines in and around Delhi. "Since the Government does not encourage private players to set up milk booths we are increasing the number of vending machines for milk in Delhi,'' says Mr. Kanth. However, its flagship and oldest product has been its ghee which sells at an almost five per cent premium to existing ghee brands in the market. In a bid to gather volumes for its ghee brand, the company has launched its `Ghar ki Rani' contest for which its consumers have to write slogans on the brand. The prizes include gold ornaments. All consumers of Paras ghee can take part in the contest.

PARAS SCOUTS FOR DAIRIES TO EXPAND NATIONAL PRESENCE

FROM scouting around for suitable dairies to acquire, to intensifying efforts to deliver Paras products at your door-step — the Paras group has lined up a slew of activities in the forthcoming year towards increasing its presence in the national dairy scene. Touted to be the second largest supplier of poly-pack milk in the Capital, after Mother Dairy - Paras is actively looking for dairies that it can acquire, particularly in other metros, to establish a national presence. Mr. K.K. Bhadra, Head of Marketing Milk with the Paras Group told Business Line that the company was open to acquisitions, provided two basic requirements were satisfied — access to good quality milk and quality processing infrastructure. Though contract manufacturing was the order of the day, he said the company was not open to such alliances as it was difficult to keep a check on quality. Another initiative that the company has embarked on is a pilot project to have a dedicated Paras retail outlet where all company products would be available less than one roof. While this plan was still at a nascent stage, he pointed out that it made more economic sense, as it was a one-time investment, as against a multi-vending outlet, which was a recurring expenditure for the company. The idea was to have a `Paras privilege club', where consumers could call for all their products and have them delivered at a time convenient to them. "Given that product differentiation across the brands is difficult in this segment, it is the services that will make a difference," he points out; and rightly so, considering that the dairy segment has long-distance runners such as Amul, Mother Dairy, Nestle and Britannia. Paras's dairy segment is an estimated Rs. 300 crores business and the company expects to double this by March 2004. Also on the anvil are innovative products such as drinking yoghurt and flavored milk. Paras is also looking to re-introduce its table-butter in the market with a more contemporary packaging. While the company is also present in the bottled water business, with its Paras brand of water, he said the company was open to diversification into "both related and unrelated business areas." Meanwhile, the company is looking to boost its exports from Rs 40 crore in the last fiscal to about Rs. 60 crores in the current fiscal. Mr. P.N. Kanth, General Manager-Marketing, VRS Foods Ltd (a Paras Group company) told the correspondent that exports were expected to increase on two accounts. Intensifying exports in the present markets, besides tapping new frontiers. Paras exports its full milk powder, casein, dematerialized whey powder and skimmed milk. At present, the company exports to the US, Germany,

South-East Asia, West Asia and Africa. It is looking to enhance its presence in these markets and look at new markets, he said.

PARAS FIELDS MOBILE VENDING MACHINES

The Rs. 400-crore Paras group, the second largest supplier of fresh liquid milk in the Capital after Mother Dairy, has hit upon a novel concept that might just upset market leader Mother Dairy’s monopoly in the token milk category which has traditionally been cheaper by Re 1 than packaged milk. Paras have introduced mobile auto vending machines which dispense this token milk at Rs. 13 per litre.

“Since the Government does not encourage private players to set up milk booths we are putting up mobile vending machines for milk in Delhi,” Paras group’s managing partner Gajinder Kumar told FE.

While Paras maintains that the aim is to tap the unbranded milk segment—45 per cent of the total milk consumed in Delhi NCR is in the form of unbranded category—industry observers believe that it’s a strategy to hit Mother Dairy.

“We are intending to upgrade this consumer from unsure, unsafe, unbranded milk to an option where they have control over quantity and faith in the quality,” Paras Group’s marketing head KK Bhadra said.

The company plans to put up Paras Milk Point (PMP) machines at various FMCG outlets all over the Capital. Over 50 machines—each costing over Rs 2 lakh—would be installed in phases over the next four months to cater to toned milk users. According to Mr. Bhadra, over 28 of these machines have been test-marketed on the outskirts of Delhi.

The PMP machines carry 250 litres of milk and also incorporate an in-built refrigerator. According to Paras, it has undertaken feasibility studies in the market before introducing this concept. Paras brand currently reaches 9,000 outlets in and around Delhi, and the group is looking at penetrating fresh markets in the northern region.

Paras’ total processing capacity of three units, one at Gulowti and two at Sahibabad in UP, is 14 lakhs litres per day. The two facilities at Sahibabad are being revamped with an investment of Rs. 5 crores.

PARAS GROUP PLANS FORAY INTO FLAVOURED MILK

THE small-versus-big brigade has another contender. The Rs 300-crore Ved Ram & Sons Foods, which owns the `Paras' brand of dairy products, intends to give a spirited fight to well-entrenched names such as Amul, Nestle and Britannia in the dairy sector. While the Paras group has been a serious player in the liquid milk category in select northern markets, the group now plans to enter the flavored milk segment. "We are planning to venture into flavored milk, given that our core competence is in the procurement of liquid milk," Mr. K.K. Bhadra, Head-Marketing, Paras group, told Business Line. He said that the foray could happen as early as next year. While Nestle India has recently rolled out fruit-flavored milk in Delhi, Mumbai and Pune, other players in this category include Britannia's Milkman, N'joi from Parle, and Mother Dairy. While the Paras group's dairy portfolio comprises poly pack milk, ghee, skimmed milk powder, dairy whitener, table butter and dematerialized whey powder, the group also markets mineral water. The company's last foray was in the curd segment earlier this year, priced on a par with Mother Dairy's curd - at Rs 14 for 400 gm and Rs. 8 for 200 gms. According to Mr. Bhadra, the Paras brand currently reaches 9,000 outlets in and around Delhi, and the group is looking at penetrating fresh markets in the northern region, having begun by making inroads into Uttar Pradesh and Haryana. However, given that distributing milk and milk-based products nationally would require heavy investments in the supply chain, manufacturing facilities and logistics, the company does not foresee itself spreading its milk products to all regions immediately. In another development, the group has rolled out an exercise aimed at creating the necessary infrastructure at non-refrigerated retail points. The company had begun distributing refrigeration units (similar to visi coolers) with capacities ranging from 140 litres to 280 litres in small retail outlets, Mr Bhadra said. The company has manufacturing bases at Sahibabad and Gulaothi (near Hapur) in Uttar Pradesh. In a recent initiative, the company has introduced a privilege card scheme for doorstep delivery of milk. After Mother Dairy, Paras is the second largest supplier of poly pack milk in the Delhi market.

1. INCOME LEVEL OF DIFFERET CONSUMERS

0%5%

10%15%20%25%30%35%40%

UPTO 10000 10000-25000 ABOVE25000

A. It is clear from analysis graph that income level up 10000 is very high i.e. 38% means consumer is very conscious about his money and purchasing power.

B. Below that income level of 10000-25000 is 34%.This segment consumer has good purchasing power but to a certain limit.

C. Lastly the income level of above 25000 is very less i.e. 28% only. This segment is very less and they can spend more than other two segments.

2. PER LITRE CONSUMPTION OF POLY PACK MILK BY CONSUMERS

30%

31%

32%

33%34%

35%

36%

37%

0.5-1 LITRE 1-1.5 LITRE >2 LITRE

A. Their are only 32% consumers who consume 0.5-1 litre of poly pack milk daily reasons are less number of family member or lower income group.

B. Now coming to second step it is clear from graph that 36% of milk consumer consume 1-1.5 litre of milk per day. This is due to medium family member or good income level.

C. 32% of consumer consume >2 litre of milk per day. Analysis say that they require >2 litre milk due to many reasons i.e. number of children, big family, excellent income level.

3. MOST PREFFERED BRAND

0%

10%

20%

30%

40%

50%

60%

PARAS AMUL MOTHERDAIRY

OTHERS

A. It is clearly seen from the graph that mother dairy is the undisputed market leader.retailes are happy to keep mother dairy and it’s no.1 choice of consumers.

B. Paras stood second with 23% consumers.paras are ranked second by consumers.

C. Amul stood second with 16%.only 16% of consumers prefer to consumer and retailers also show keen interest in keeping it.

D. Others players are having very less market i.e of 8% only.

4. SATISFACTIONAL LEVEL

YES

NO

YES

NO

A. 92% of consumers were satisfied with their existing brand. Analysis shows that brand loyalty exists in customers also these consumers are having trust on their brands.

B. 8% of consumers are not satisfied with their existing brand due to many reasons i.e.

1. Poor service provided by retailers. 2. Quality and taste problem.

5. OTHER DAIRY PRODUCTS CONSUME BY CONSUMERS

0%5%

10%15%20%25%30%35%40%45%

PANEER DAHI LASSI ANYOTHER

A. In other milk product segment 32% of consumer prefer to buy

paneer.due to brand loyalty.

B. 41% of consumers prefer to buy their brand of Dahi and rests of consumer prefer to consume home made dahi.

C. Only 17% of consumer use to buy lassi.but it’s fluctuating in summer season its sale touches sky but in off season it remains at stagnant position. Other consumers prefer to buy fresh lassi i.e. made in front of them with pure DahI.

D. 10% of consumers consume other products like butter, chease e.t.c.

1. MOST PREFERED BRAND

0%

10%

20%

30%

40%

50%

60%

PARAS MOTHERDAIRY

AMUL OTHERS

A. After distributing Rs 2 discount coupon on Paras full cream milk the Paras sale increased from 20% to 26%.means there was increase of 6%.this was a strategy to increase the sale.

B. Mother dairy’s sale was not effected it remained at 53%.

C. Amuls sale decreased from 16% to 15%.Amul customer really given preference to Paras and according to analysis from declined 1% customer of Amul will stick with Paras .

D. Other player’s sale declined from 8% to 7%.and according to analysis the declined 1% customer will stick to Paras.

2. STRENGTH OF PARAS MILK

0%5%

10%15%20%25%30%35%

A. It is clear from the graph that quality is the major strength of Paras with 29%.29% consumer preferred its strength as its quality.

B. 28% consumer preferred taste as the major strength of Paras milk. As we can see customer preference is different at different level.

C. 16% of consumers preferred price as a strength of Paras milk.

D. 15% of consumer preferred availability as a strength of Paras milk.

E. 112% consumer preferred service as a strength of Paras milk. This percentage makes clear that service provided by Paras milk is poor. As

today’s business is standing only on the basis of services they are providing to their customers. Paras should improve the service provided to customers.

3. WEAKNESS OF PARAS MILK

0%5%

10%15%20%25%30%35%

A. According to 32% of consumer quality is the weakness of Paras milk. As these 32% consumer encountered quality problem.

B. According to 20% of consumers taste is the weakness of Paras milk. According to 20% consumer their children don’t like taste of Paras milk.

C. According 28% consumer’s service is major problem. This analysis shows poor Service of Paras milk and Management.

D. 10% consumer stick with price i.e. price is major weakness of Paras milk.

E. 10%consumers view is that availability is the weakness of Paras milk

4. RANKING OF THE COMPANY

0%10%20%30%40%50%60%70%

PARAS MOTHERDAIRY

AMUL OTHERS

A. It is clearly seen from the graph that mother dairy is undisputed market leader with 61% consumer’s opinion. Mother dairy is retailers and consumers first choice.

B. Paras stood second with 21% consumer’s opinion. As this improved from last years data. It indicates a mark of improvement in sales growth and in goodwill of the company.

C. Amul stood third with 12% consumer’s opinion. Their is decline in sale of Amul from last year.

D. Other players stood fourth with 6% consumer’s opinion. Their is sharp fall seen in other category.

NOTE: RANKING IS GIVEN ON THE BASIS OF PERFORMANCE OF QUALITY, TASTE, PRICE, AVAILABILITY AND SERVICE OF THE PRODUCT IN THE MARKET.

5. SATISFACTION LEVEL IN RESPECT OF OTHER MILK PRODUCTS OF PARAS MILK

YES

NO

A. 85% of consumers are satisfied with other milk product of Paras milk. Satisfaction level is very high because today’s consumer are brand conscious. if they are using a brand and they like it then they will make a portfolio of same brand.

B. 15% of customer are not satisfied with other milk product of Paras milk. This is because of not maintaining quality and taste of product i.e. fluctuation in taste and quality of product also poor service is important factor. Consumers are not satisfied with service of paras this also many be one of the reason.

RETAILING SOLUTION:CASE ON PARAS FOODS LIMITED

PARAS FOODS LIMITED appointed us as summer trainees in the organization for tenure of two months. The topic assigned to us was "effectiveness of promotional strategy of poly pack milk”. Work was to distribute discount coupons to consumer and increase the same. During this period we met nearly 200 consumers and 5 retailers.

During interactive session they came with a valid point that they are not getting any scheme from company and other companies are giving certain schemes to them. According to them other companies are giving them scheme so they try to boost the sale of respective company because they (retailers) are working for benefit. One retailer told me that “we are here for profit and the company which will give more margin and scheme the preference for sale will be given to their product. When we kept this matter in front of company they totally neglected this matter. also one more thing came in front of us that retailers were not aware about that promotional scheme what we were about to do. The scheme was explained to them when we were about to start the project. This case shows total negligence of management. Soon a proper step should be taken to eradicate the problem to keep its market share up and to maintain the goodwill of company and its product in the eye of consumers.

SOLUTION TO THE CASE STUDY

Here company is not aware that a simple mistake can ruin their goodwill in market. For this problem they have to take some steps. Following are some suggested steps The company should appoint a customer care executive who will be responsible

for maintaining relations with retailers. He will act as representative of retailers. Certain scheme should be give to retailers time to time. Since retailer is on whom

total sale is based. He is final personal who convinced the customer to purchase the particular brand. If a retailer is not satisfied with your service then from that day detoration period of company starts and sale starts falling.

From my study the conclusions was drawn that Paras sale dropped because they never given preference to retailers. They never made any relation with retailers. also retailers are not excited in selling paras products

Lastly I would like to recommend that paras should maintain its retailers. if they will loose a single retailer they will loose nearly 100 consumer. And loosing a consumer is easy but making a consumer is very difficult.So time to time paras should provide certain good scheme to retailers and should appoint customer care executives exclusively for maintain relationship with retailers.

ENHANCING RURAL ENTERPRISE AND GLOBAL REACH THROUGH E- COMMERCE:CASE OF PARAS DAIRY.COM

Paras,the flagship brand name for a variety of dairy product marketed by VED RAM AND SONS. Paras dairy is having good command over NCR region which aims to provide enumerative returns to more than 1.5 million farmers from over many villages. Apart it serve, the interest of billions of consumers by providing quality products and value for money. Paras product is extremely visible brand name in the country. It has strong distribution network in different are as the production as well as demand of the product has a seasonal variation. Since its inception, the organizations corporate plan has been growth oriented, consistence with national policy of self sufficiency in milk and improving the economy and social life of farming community in general and strengthening the co-operative system in particular. The organization has given a vision to become the largest food enterprise in the world. So far it has been operating in a monopolistic market but now will have to face competition. Realizing the threat from competition well in advance, its management has started taking steps. It will have to peruse the breakthrough improvement in overall performance of its core business processes such at first lag dispatch, second lag dispatch and new product development, e.t.c, by applying the B2B e-commerce. The enterprise wide information technology infrastructure is already in place. In order to bridge the digital divide, there in an initiative to create a Top Level Domain (TLD) for co-operatives. It is believed that by developing "parasdairy.com "umbrella brand web portal, it would be in position to communicate with all its members and millions of consumers across the world. This is expected to give vital business advantage and facilitates PARAS brand penetration across the world.

it is interesting to note that in this case the end the customer buying through net is not getting the benefit of price even through the middlemen is eliminated and customer is paying the same price as he may have through the products from a friendly neighborhood store. Only difference is that the buyer can get all products, which he desires, which may not be available in a store. Very little payment security issues are involved as financial transactions are done using cash only. The PARAS may think in terms of creating "value chain management" by having a group of houses as its supply base and thereby reducing the price to its end consumers. The PARAS web site has been properly firewall to protect the page from hackers.

the PARAS model is unique in the country as it is one of its kind where the milk travel from remote village areas to milk processing centers and from there it reaches to house in big cities and metros throughout the country as well as abroad. There are large numbers of rural enterprise particularly in handicrafts, handlooms and agribusiness sectors that can

adopt PARAS model of e-commerce to reach out global consumers and hence can give boost to Indian economy.

SOLUTION TO THE CASE STUDY

the emergence of information and communication technology(ICT)is not only reshaping the business models but also intensely interlining enterprises across its internal as well as external value chain. In other words business enterprises are in the process of major transformation in order to meet the challenges of network economy. It is generally expected that with e-transformation company should result into greater performance in terms of sales per employee, profit as well as operating margins, return on assets, inventory turnover, asset utilizations, working capital turnover, accounts receivable turnover etc. it has been well established that as the number of nodes in network increases arithmetically, the value of network increase exponentially. The emerging ICT enabled management systems, such as ERP, e-business and e-governance are increasingly being diffused into practice by organizations and government worldwide. these systems and practices are transforming the industrial age social and economic structure and processes into that of information age. However it has also been observed that diffusion of these practices is highly skewed towards developed part of economy and has been a very low rate of rate of adoption in the developing countries. Apart the adoption of these systems and practices in the developing countries is in general restricted to the big cities and multinational corporations. This may lead towards widening the game between have and have not the internet and ICT enabled management system are going to play a critical role in bridging the gape between developed and developing economy. Developing countries can adopt the technological and infrastructure aspects of ICT from the experience of developed countries, but will have to innovate its own models.

CONCLUSION

It is observed that company's first task is "to create customer”. Earlier Mother Dairy was pioneer of the market. At present condition, we cannot say Mother Dairy is the unchallengeable market leader, and fully successful to create customers. Other private dairies and unorganized sector have made their potential market. They are able to position themselves successfully in the market by attracting potential.

Customers form an expectation of values and act on it. A buyer's delight is the function of products perceived performance and customer’s expectations.

Recognizing that high satisfaction leads to customer loyalty quality value and services are totality of features and characteristics of a product that bear on its ability to satisfy stated or implied needs. Total quality is the key to value creation and customer delight.

Hence PARAS should take necessary steps to continue bringing quality product. First, it should participate in formulating strategies and policies designed to help the company win through total quality excellence. Secondly, and they must deliver marketing quality along side production quality and value. Each marketing activity marketing research, advertising, and customer service and so on must be performed to high standards.

LIMITATION OF LEARNING

Every research is conducted under some boundaries and this research is not exception. Limitation of this project is:

The sample size of 200 consumers is too small to project the opinion of retailers regarding a particular brand also degree of success of the brand in the market.

There might have been the tendencies among the respondent to amplify their responses under testing conditions.

Since the study involved sampling method ‘drop in’ or go through errors might have crept in.

Since the result has been made according to the respondent answer errors might have occurred and cannot be relied upon blindly.

FORWARD

Academics alone cannot sell anything; practically to earth training is required to make a hardcore marketer. As apart of our curriculum we are required to undergo practical training, so that we get exposed to practical side of knowledge.

This report which I have prepared on the PARAS milk has taught me a lot in such a short period, though this is just a tip of an iceberg there are many things which I have to learn more but during this training I have done and learned, which cannot be qualified or categorized in this project report. During this training I studied total market of PARAS FOODS and tried to explore the problems which were faced by PARAS FOODS. I made my level best to provide solution to that problem by this I was getting practical knowledge regarding market and marketers.

This training has not only imparted attitudes and skills I can use more successfully in today’s market place, but is also a great addition to development of my personality.

This training provided me Edge to stand in position to understand market and its constituents. This training helped to understand consumer behavior which is my favorite topic in marketing. Crux of the training is that it was a great addition to development of my personality and to my practical knowledge.

SWOT ANALYSIS OF PARAS FOODS

STRENGTH

It has good logistics and channel network Well-trained marketing staffs. Good quality of milk. Abundant availability of raw materials. Demand is absolutely optimistic Paras has well built image of excellence and innovation supported by Indian diary

technology.

WEAKNESS

Retailers say they are not satisfied with the schemes. The distributors do not give equal importance to all the retailers. They neglect few

retailers. Distribution channel is not all over the region. Lack of advertisement and promotional programs.

OPPORTUNITIES

Value addition: there is a phenomenal scope for innovation in product development, packaging and presentation. Steps can be taken to ensure more vitamins and protein in the milk.

Reduction in price for a short span may attract new customers.

THREATS

Entry of MNC’S is a serious threat to Paras Company. The unorganized milk vendors are also a big threat to the company.

BIBLIOGRAPHY

MAGAZINE:

Business today Business India

NEWS PAPER:

Economics times Business line Business standard The Hindustan times

BOOKS:

Marketing research by Thomas C.Kinnear/James R.Talylor Marketing management by Philip Kotler Consumer behavior by Gupta and Pal

WEBSITE:

www.amul.com www.parasdairy.com www.motherdairy.com www.economicstimes.com www.business-standard.com www.google.co.in www.thehindubusinessline.com www.indiandiary.com www.magindia.com

BENEFITS OF THE TRAINING

As a part of my curriculum I have undergone a practical training to get better exposure to the market. Academics is important but a practical knowledge cannot be founding texts.

This training has imparted valuable knowledge and skills, which is an addition to the balanced development of my personality. I was able to apply all the addition to the marketing taught in the classroom when given the opportunity.

During the training I learned the practical way of conducting a research and how they are implemented i.e. preparation of questionnaire, testing it, collecting the data analysis techniques.

I gained the experience of set environment of corporate offices and how things move in corporate offices.

I acquired the minute details of milk business, brands, quality, prices, specifications and gained a good knowledge of liquid milk industry.

RECOMMENDATION

PARAS FOODS LIMITED is doing quiet good in Delhi as compared to its performance in NCR (National Capital Region).Total Delhi market is seen to be favorable for PARAS FOOD but little bit hard work is required for NCR. But it is also considered that if PARAS is not grasping the opportunity which is present in the market then they will loose their market share slowly-slowly. If they loose the Delhi market then they will loose due to some identified problems. During our 8 weeks training we boosted the sale of Paras by introducing a scheme i.e. distributing Rs. 2 discount coupon on Paras full cream milk. This scheme was valid till one month. During that month sale boosted but in next month again sale came to same position. During my 8 weeks scanning of milk market and after analysis of total facts I would like to put forward few recommendations to the company.

Paras have failed to increase sale of its toned and double toned milk. It should concentrate more on toned and double toned milk. The company should come up with more awareness programs.

Paras should setup ATM (Any Time milk) at favorable locations i.e. near by households, near by students hostel and near by factory which is running in night shift also.

Paras should setup their own retailing shop at prime location of the city and in that shop they should keep their own product and they should establish a mini cafeteria in that respective shop.

As Paras is having good market in NCR so they should advertise or promote their product through Radio mirchi, 98.5 Fm, Red Fm etc. These media are cheap and having wide coverage.

The awareness of milk is low when compared to that of mother dairy, so the company should come up with more canopies and more banners and hoardings.

Paras should provide special attention to their retailers. Time to time they should be given some scheme. If they will be boosted then sale also will be boosted.

Paras should take customers feedback time to time. This can be done by selecting some customer and taking feedback. this could be beneficial for PARAS FOODS

PARAS FOODS CYBER SHOP

Paras foods are providing Cyber Shopping to its customer. Through Cyber shopping a customer can choose his product from portfolio of products through internet. As they will choose their product amount will be indicated. Lastly when it’s over then total amount will be indicated. Next step is to provide address and phone number accordingly they can deliver the item and can collect the money. Cyber shopping provided a good Edge for growth. In future this will help in brand positioning of new and older products. Very less number of players is providing cyber shopping in this sector. Paras should take it as a benchmark and carry on its growth. In future this cyber shop will help in Brand positioning and Brand building of the new and older products.

But this cyber shopping must be come in light i.e. it should be promoted among consumers and provogue them to buy Paras product through Cyber shopping. Once customer comes to know about Cyber shopping them once they will try and if they find better service then they will continue. In future Cyber shopping is going to be a boon for an company. in coming future due to hectic schedule people will not able to purchase good by going to market simply they will order the goods through cyber shop from anywhere. This is and advantage era and opportunity is striking at the door only has to identify and grasp it.

Cyber shopping introduced is good move by Paras. Only they have to concentrate on it and maintain the cyber shop for future. Because in coming future they will need cyber shop for Brand positioning and Brand building.

SAMPLE VIEW OF CYBER SHOPPING FORM IS IN NEXT PAGE………..

CHAPTER FOUR-

FUTURE EVENTS OF PARAS FOODS

CHAPTER FIVE-

ANALYSIS OF INITIAL

QUESTIONNAIRE

CHAPTER SIX-

ANALYSIS OF FEEDBACK

QUESTIONNAIRE

CHAPTER EIGHT-

CONCLUSION

CHAPTER NINE-

BENEFITS OF TRAINING

CHAPTER TEN-

LIMITATION OF THE PROJECT

CHAPTER ELEVEN-

BIBLOGRAPHY

CHAPTER TWELVE-

ANNEXURES

EXECUTIVE SUMMARY

ACKNOWLEDGEMENT

FOREWARD

CONTENTS

CHAPTER SEVEN-

CASE STUDY ON PARAS FOODS

4. INCOME LEVEL OF DIFFERET CONSUMERS

0%5%

10%15%20%25%30%35%40%

UPTO 10000 10000-25000 ABOVE25000

D. It is clear from analysis graph that income level up 10000 is very high i.e. 38% means consumer is very conscious about his money and purchasing power.

E. Below that income level of 10000-25000 is 34%.This segment consumer has good purchasing power but to a certain limit.

F. Lastly the income level of above 25000 is very less i.e. 28% only. This segment is very less and they can spend more than other two segments.

5. PER LITRE CONSUMPTION OF POLY PACK MILK BY CONSUMERS

30%

31%

32%

33%34%

35%

36%

37%

0.5-1 LITRE 1-1.5 LITRE >2 LITRE

D. Their are only 32% consumers who consume 0.5-1 litre of poly pack milk daily reasons are less number of family member or lower income group.

E. Now coming to second step it is clear from graph that 36% of milk consumer consume 1-1.5 litre of milk per day. This is due to medium family member or good income level.

F. 32% of consumer consume >2 litre of milk per day. Analysis say that they require >2 litre milk due to many reasons i.e. number of children, big family, excellent income level.

6. MOST PREFFERED BRAND

0%

10%

20%

30%

40%

50%

60%

PARAS AMUL MOTHERDAIRY

OTHERS

E. It is clearly seen from the graph that mother dairy is the undisputed market leader.retailes are happy to keep mother dairy and it’s no.1 choice of consumers.

F. Paras stood second with 23% consumers.paras are ranked second by consumers.

G. Amul stood second with 16%.only 16% of consumers prefer to consumer and retailers also show keen interest in keeping it.

H. Others players are having very less market i.e of 8% only.

4. SATISFACTIONAL LEVEL

YES

NO

YES

NO

C. 92% of consumers were satisfied with their existing brand. Analysis shows that brand loyalty exists in customers also these consumers are having trust on their brands.

D. 8% of consumers are not satisfied with their existing brand due to many reasons i.e.

1. Poor service provided by retailers. 2. Quality and taste problem.

5. OTHER DAIRY PRODUCTS CONSUME BY CONSUMERS

0%5%

10%15%20%25%30%35%40%45%

PANEER DAHI LASSI ANYOTHER

E. In other milk product segment 32% of consumer prefer to buy

paneer.due to brand loyalty.

F. 41% of consumers prefer to buy their brand of Dahi and rests of consumer prefer to consume home made dahi.

G. Only 17% of consumer use to buy lassi.but it’s fluctuating in summer season its sale touches sky but in off season it remains at stagnant position. Other consumers prefer to buy fresh lassi i.e. made in front of them with pure DahI.

H. 10% of consumers consume other products like butter, chease e.t.c.

1. MOST PREFERED BRAND

0%

10%

20%

30%

40%

50%

60%

PARAS MOTHERDAIRY

AMUL OTHERS

E. After distributing Rs 2 discount coupon on Paras full cream milk the Paras sale increased from 20% to 26%.means there was increase of 6%.this was a strategy to increase the sale.

F. Mother dairy’s sale was not effected it remained at 53%.

G. Amuls sale decreased from 16% to 15%.Amul customer really given preference to Paras and according to analysis from declined 1% customer of Amul will stick with Paras .

H. Other player’s sale declined from 8% to 7%.and according to analysis the declined 1% customer will stick to Paras.

2. STRENGTH OF PARAS MILK

0%5%

10%15%20%25%30%35%

F. It is clear from the graph that quality is the major strength of Paras with 29%.29% consumer preferred its strength as its quality.

G. 28% consumer preferred taste as the major strength of Paras milk. As we can see customer preference is different at different level.

H. 16% of consumers preferred price as a strength of Paras milk.

I. 15% of consumer preferred availability as a strength of Paras milk.

J. 112% consumer preferred service as a strength of Paras milk. This percentage makes clear that service provided by Paras milk is poor. As today’s business is standing only on the basis of services they are providing to their customers. Paras should improve the service provided to customers.

3. WEAKNESS OF PARAS MILK

0%5%

10%15%20%25%30%35%

F. According to 32% of consumer quality is the weakness of Paras milk. As these 32% consumer encountered quality problem.

G. According to 20% of consumers taste is the weakness of Paras milk. According to 20% consumer their children don’t like taste of Paras milk.

H. According 28% consumer’s service is major problem. This analysis shows poor Service of Paras milk and Management.

I. 10% consumer stick with price i.e. price is major weakness of Paras milk.

J. 10%consumers view is that availability is the weakness of Paras milk

4. RANKING OF THE COMPANY

0%10%20%30%40%50%60%70%

PARAS MOTHERDAIRY

AMUL OTHERS

E. It is clearly seen from the graph that mother dairy is undisputed market leader with 61% consumer’s opinion. Mother dairy is retailers and consumers first choice.

F. Paras stood second with 21% consumer’s opinion. As this improved from last years data. It indicates a mark of improvement in sales growth and in goodwill of the company.

G. Amul stood third with 12% consumer’s opinion. Their is decline in sale of Amul from last year.

H. Other players stood fourth with 6% consumer’s opinion. Their is sharp fall seen in other category.

NOTE: RANKING IS GIVEN ON THE BASIS OF PERFORMANCE OF QUALITY, TASTE, PRICE, AVAILABILITY AND SERVICE OF THE PRODUCT IN THE MARKET.

5. SATISFACTION LEVEL IN RESPECT OF OTHER MILK PRODUCTS OF PARAS MILK

YES

NO

C. 85% of consumers are satisfied with other milk product of Paras milk. Satisfaction level is very high because today’s consumer are brand conscious. if they are using a brand and they like it then they will make a portfolio of same brand.

D. 15% of customer are not satisfied with other milk product of Paras milk. This is because of not maintaining quality and taste of product i.e. fluctuation in taste and quality of product also poor service is important factor. Consumers are not satisfied with service of paras this also many be one of the reason.