CHAPTER-I INTRODUCTION Today India is The Oyster of the dairy industry ,It offer opportunities globe to entrepreneurs worldwide ,who wish to capitalized on one of the world’s 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. India’s 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 Japan’s $28 dollars. Also to take advantage of the lowest cost of production and increasing production
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CHAPTER-I
INTRODUCTION
Today India is The Oyster of the dairy industry ,It offer opportunities globe to
entrepreneurs worldwide ,who wish to capitalized on one of the world’s 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.
India’s 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 Japan’s $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.
Analysis On Parag Distribution System
BACKGROUND
Indian dairy sector contributes the large share in agricultural gross domestic product.
Presently there around 70; 000village dairy cooperatives across the country. the co-
operative 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)
U S A 7002
U K 5417
CANADA 5348
NEW ZEALAND 2976
PAKISHTAN 1052
INDIA 845
WORLD AVERAGE 3234
SOURCE: Export prospects for agro based industries; trade centre Mumbai
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Production of milk India
Year Production Per
capitalavailibilty(gms/day
1991-92 55.7 178
1992-93 58.0 182
1993-94 60.6 187
1994-95 63.8 194
1995-96 66.2 197
1996-97 69.1 202
1997-98 72.2 207
1998-99 75.5 213
1999-2000 78.3 217
2000-01 80.6 220
2001-02 84.4 225
2002-03 86.2 230
2003-04 88.1 231
2004-05 97.1 241
2005-06 97.1 233
2006-07 100.9 246
2007-08 104.8 252
2008-09 105.5 259
2009-10 109.3 265
2010-11 110.5 289
Source: DFPI Annual Report 1991-2010
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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.
Milk production is relatively efficient way of converting vegetable material into animal
food .dairy cow’s 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 fiancé and support
producer owned and controlled organization. NDDB’s programmers and activities seek to
strengthen farmer cooperative and support national policies that are favorable to the
growth of such institutions. Fundamental to NDDB’s efforts cooperative principles and
cooperative strategies.
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MILK PRODUCTION
India’s 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
India’s 3.8 % annul growth of milk production surpasses the2% growth in production, the
net increase in availability is around 2% per year
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OBJECTIVE
The 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.
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LIMITATIONS OF STUDY
The edifice of the study entirely stands up on the pillar of information given by
respondent
Limitations applicable to the questionnaire method may be applicable to this
study, as biased answers, memory access variation, in cooperative and doubtful
approach.
The time for study was very short.
The secondary data available for comparative analysis is only for the period of
2010-2011
Due to various factors associated, the information provided by customer has its
own bias.
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Analysis On Parag Distribution System
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 my research strategy 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
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Analysis On Parag Distribution System
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.
Research design
The research design are calcified on the base offundamental 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
ObservationMayankar Singh 91106170070
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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 inboth ways Primary and
Secondary method.
Data Analysis Lucknow Milk Union LtdSurvey
Area- Gomti Nagar, Indira Nagar, Kapoorthala, Vikasnagar Data Analysis Lucknow
Producers Co-Operative Milk Union Ltd Survey
Area- Gomti Nagar, Indira nagar, Kapoorthala, Vikasnagar Agents Survey Report I Have
meet with around 100 sellers of milk and found theFollowing information from the
agent’s answer of the relevant questionnaire. These charts are made according to the
Here I have taken sample size of agent’ is 100 to understand the total market share on
milk brand.
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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
2 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.
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Type of questionnaire
Open ended question – 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 questionThere 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.
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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 juddered
sample because consumers were fully cooperative &survey according to the desire of
consumer.
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CHAPTER – II
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.
Mayankar Singh 141106170070
Analysis On Parag Distribution System
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 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 Producer’s 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 Producer’s Co-operative Milk Union Ltd. Was 49,300 kg. With peak
handling of 1,04,950kg in the Feb.
In april 1981 Lucknow Producer’s 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 Producer’s 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.
Mayankar Singh 151106170070
Analysis On Parag Distribution System
In view of milk production procurement and marketing potential of Lucknow Producer’s
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.
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 Producer’s 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.Mayankar Singh 161106170070
Analysis On Parag Distribution System
ORGANISATION HIERARCHY
MARKETING DEPARTMENT
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CHAIRMAN
BOARD OF DIRECTORS
GENERAL MANAGER
MARKETING
MANAGER
SUPERVISOR
FINANCE MANAGE
R
FACTORY MANAGE
R
QUALITY MANAGE
R
HR MANAGE
R
Analysis On Parag Distribution System
ABOUT THE ORGANIZATION
Mayankar Singh 181106170070
MARKETING
MARKETING RESEARCH ADVERTISING SALES
Analysis On Parag Distribution System
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
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.Mayankar Singh 191106170070
Analysis On Parag Distribution System
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 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 Producer’s 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.
Mayankar Singh 201106170070
Analysis On Parag Distribution System
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 Producer’s Co-operative Milk Union Ltd. Was 49,300 kg. With peak
handling of 1,04,950kg in the Feb.
In april 1981 Lucknow Producer’s 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 Producer’s 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 Producer’s
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.
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 Producer’s co-operative milk union Ltd., Lucknow.
Mayankar Singh 211106170070
Analysis On Parag Distribution System
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.
CHPATER – III
MARKETING
Mayankar Singh 221106170070
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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.
CONSUMER FOCUS
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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 approach-
Consumer 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.
2. product solution
3. promotion information
4. price value
5. Place access
The four elements of the SIVA model are:
Solution
Information
Value
Access
SALE PROMOTION
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Analysis On Parag Distribution System
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
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Analysis On Parag Distribution System
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.
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 Mayankar Singh 261106170070
Analysis On Parag Distribution System
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.
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
Mayankar Singh 271106170070
Analysis On Parag Distribution System
Display windows
Redistribution incentive Shop salesmen incentive
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 product’s quality and its advertising
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 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
Mayankar Singh 281106170070
Analysis On Parag Distribution System
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
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'.Mayankar Singh 291106170070
Analysis On Parag Distribution System
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)
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).
Mayankar Singh 301106170070
Analysis On Parag Distribution System
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 toprovide 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.
Mayankar Singh 311106170070
Analysis On Parag Distribution System
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.
Mayankar Singh 321106170070
Analysis On Parag Distribution System
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.
Mayankar Singh 331106170070
Analysis On Parag Distribution System
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).
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-to-day 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).
Mayankar Singh 341106170070
Analysis On Parag Distribution System
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 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).
Mayankar Singh 351106170070
Analysis On Parag Distribution System
The primary objective of distribution strategy is toprovide 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")
- Compatibility of logistics infrastructures (location of facilities, information
systems)
- The supplier's market position (clout)
In part to defray initialization costs and mitigate risk (to the retailer), an
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.
Mayankar Singh 361106170070
Analysis On Parag Distribution System
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.
.
Mayankar Singh 371106170070
Analysis On Parag Distribution System
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.
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
Mayankar Singh 381106170070
Analysis On Parag Distribution System
(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
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).
Mayankar Singh 391106170070
Analysis On Parag Distribution System
Mayankar Singh 401106170070
Analysis On Parag Distribution System
Mayankar Singh 411106170070
Analysis On Parag Distribution System
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 GujaratDevelopment Cooperative Federation Ltd