“Analysis of current market of dairy products in HORECA with special reference to Parag and Amul” PARAG MILK FOODS PVT LTD Industry Internship Project Report Submitted in Partial Fulfillment For the award of Post Graduate Diploma in Management Submitted By: Chirag Beladiya Roll No. (12- A) Batch: 2015-17 Under the guidance of Faculty Guide name: Industry Guide name: Prof. Anumeha Mathur Razak Mansuri Designation: Assistant Professor Designation: Sales Manager Name of the Institute: Name of Company: ST.Kabir Institute of Professional Studies Parag Milk Foods PVT LTD Submitted To Page 1 | 92
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“Analysis of current market of dairy products in HORECA with special reference to Parag and Amul”
PARAG MILK FOODS PVT LTD
Industry Internship Project Report
Submitted in Partial Fulfillment
For the award of
Post Graduate Diploma in Management
Submitted By: Chirag Beladiya
Roll No. (12- A)
Batch: 2015-17
Under the guidance of
Faculty Guide name: Industry Guide name:
Prof. Anumeha Mathur Razak Mansuri
Designation: Assistant Professor Designation: Sales Manager
Name of the Institute: Name of Company:
ST.Kabir Institute of Professional Studies Parag Milk Foods PVT LTD
Submitted To
St. Kabir Institute of Professional Studies, Ahmedabad June 2016
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St. Kabir Institute of Professional Studies
(Approved by AICTE, Government of India)Nr. SAL Hospital, Ahmedabad
CERTIFICATE
This is to certify that the project report titled “Analysis of current market of dairy products in
HORECA with special reference to Parag and Amul” being submitted by Chirag Beladiya -A in
partial fulfillment of the requirement for the award of Post Graduate Diploma in Management, is
a record of bonafide work carried out by him under my guidance and supervision.
Date:
Place: Ahmedabad
Name of the faculty guide: Dr. Gurpreet Singh Arora
Prof.Anumeha Mathur Dean, SKIPS
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DECLARATION
I, Chirag Beladiya a student of PGDM of ST KABIR INSTITUTE OF PROFESSIONAL
STUDIES (SKIPS) hereby declare that the Project entitled “Analysis of current market of
dairy products in HORECA with special reference to Parag and Amul at PARAG FOODS
PVT LTD was carried out by me in the partial fulfillment of PGDM program.
I declare that the work submitted here is done by me and to the best of my knowledge; no
such work has been submitted by any other person for the award of this degree.
I also declare that all the information collected from primary and secondary sources had
been duly acknowledged in this project report.
Date: Chirag Beladiya
Place: 12 (Div-A)
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ACKNOWLEDGEMENT
I was placed at PARAG MILK FOOD for training purpose it has been a pleasure and
honor to work at such a great organization. I am highly thankful to the management of PARAG
FOODS PVT LTD and to all of them who have directly or indirectly helped me in this project.
I am highly thankful to my college St. Kabir Institute Of Professional Studies from
where I got an opportunity to acquire the training PARAG FOODS PVT LTD
My first word of gratitude is due to Mr. RAZAK MANSURI– Sales Manager,
PARAG FOODS PVT LTD, Ahmedabad, my corporate guide, for his kind help and
support and his valuable guidance throughout my project. I am thankful to him for
providing me with necessary insights and helping me out at every single step. I am also thankful
to all the employees of organization who given desirable guidance when it’s required
I would like to thanks my faculty guide Anumeha Mathur for providing best support
and guidance for project as well as also would like to thanks to her professors and friends for
providing me needed information and help during my project work.
Chirag Beladiya
PGDM (2015-17)
12(A)
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Table of content
PARTICULARS
PAGE
NO.
CHAPTER-1 INTRODUCTION 3
1.1 Introduction of the topic/study 4
1.2 Objectives of the study 5
1.3 Scope of the topic/study 6
1.4 Rationale of the study 7
CHAPTER: 2 OVERVIEW OF INDUSTRY AND COMPANY 8
2.1 Introduction to Industry 14
2.2 Introduction to the company (Analysis regarding company, customers &
competitors) 17
2.3 Organization structure 25
2.4 Product/services range 26
2.5 SWOT Analysis 38
2.6 Past performance of the company 41
CHAPTER-3 REVIEWS OF LITERATURE/ THEORETICAL
BACKGROUND 45
3.1 Theoretical framework 46
3.2 Review of existing literature from International/ National journals,
conferences, books and reports which are related to the project. 47
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CHAPTER-4 Research Methodology 53
4.1 Problem identification 54
4.2 Type of research 54
4.3 Sources of data 55
4.4 Data collection method 56
4.5 Sampling plan 56
4.6 Statistical tool (If applied) 56
CHAPTER: 5 DATA ANALYSIS & INTERPRETATION 57
CHAPTER: 6 FINDINGS & RECOMMENDATION 65
CONCLUSON 69
BIBLIOGRAPHY 70
REFERENCES 71
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CHAPTER-1 INTRODUCTION
1.1 Introduction of the topic/study:
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“Analysis of current market of dairy products in HORECA with special reference to Parag and Amul”
HO=Hotels
RE=Restaurants
CA=Caterers & Cafeteria
In leading competitive environment it is very important to know that where we stand and
what is our position in market and customer mind. After commencing its business at
Surat, the Company wanted to increase its market share against its competitors like amul.
Topic is related to analysis of current market share of dairy product in HORECA segment
include like Restaurant, Hotel, Cateress, and College canteens with specially reference with
amul like to conduct a customer survey to get knowledge about the customers perception, their
loyalty towards Parag and Amul, market position of PARAG and customers suggestion related
to PARAG products that helps to provide competitive advantage to the company against the
competitors.
1.2 Objectives of the study: P a g e 8 | 70
• To know the consumer perception about the Parag products and know the positive and
negative aspects of organization
• To determine the appropriate delivery time of the Parag milk product
• To find satisfaction level of consumer with Parag products
• To know the factors which influence a customer to go for particular brand
• To know the comparative analysis of Parag with the other brands
• To know the strength, weakness, opportunities, and threats of Parag products
• To know the market of Parag product
• To study the response and behavior of the customer
• To know brand loyalty of Parag product
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1.3 Scope of the topic/study:
This specially studies on the analysis of current trends of the dairy product and comparative
study on the Parag and Amul to find out the which brand product create their reputation and the
loyalty towards the customer.
The main scope of the study was to put the theoretical aspect of the study into real lifework
experience.
The project will be learning of real market situation and how to deal with clients.
It provide information regarding company current position in the market
It will help us to know about our customer’s satisfaction level.
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1.4 Rationale of Study
To benefit the company by giving them a detailed understanding of HORECA segment by
collecting information about old and new customers of company in HORECA
To create more awareness of the functioning of the company and create its brand name in the
minds of the customers because the product Gowardhan, which is a product of the company, is
more famous in the minds of the people.
To promote the company’s new product in the competitive market.
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CHAPTER: 2 OVERVIEW OF INDUSTRY
AND COMPANY INTRODUCTION TO
FMCG INDUSTRY
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India is the world’s largest producer of dairy products by volume and has the world’s largest
dairy herd with an annual output of 130 MT
• Country accounts for more than 13% of world’s total milk production and is also the
world’s largest consumer of dairy products
• Demand for milk is expected to increase at a compound annual growth rate or CAGR of
5% from 138 million tonnes in 2014 to 200 million tonnes in 2022
India’s FMCG sector is 4th largest Sector in the economy and contribute to around 3mln
employment opportunities.
FMCG SECTOR generally deals with FMCG products or fast moving consumer goods.
Intense competition between the organized and unorganized segments.
Availability of key raw materials, cheaper labour costs and presence across the entire value
chain gives India a competitive advantage.
Even during the slowdown of the economy, the FMCG sector has registered a growth rate of
14.5 per cent for the year 2007-08.
FMCG products have a quick turnover and relatively low cost.
FMCG Industry is characterized by a well-established distribution network, low penetration
levels, low operating cost, lower per capital consumption and intense competition between the
organized and unorganized segments.
The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in
the country and over the years has been growing at a very steady pace. The sector P a g e 13 | 70
consists of consumer non-durable products which broadly consists, personal care,
household care and food & beverages.
The Indian FMCG industry is l a rge ly c l a s s i f i e d a s o rga n ize d and uno rgan iz ed .
Th i s se c to r i s a l so buoyed by intense competition. Besides competition, this industry is
also marked by a robust distribution network coupled with increasing influx of MNCs
across the entire value chain. This sector continues to remain highly fragmented.
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Overview of Indian dairy
The world’s biggest dairy producing country is growing fast and looking to become an export powerhouse despite major quality problems…
A note to our readers: the following information on India’s dairy sector is reproduced from india Infiline.com. India is the world’s largest milk producing country and is growing fast, with an eye toward becoming a major dairy exporter.
• Cow milk production 46.57 million tonnes
• % of worldwide milk production 17%
• Buffalo milk production 57.96 million tonnes
• No. of milk producing dairy cows 38.50 million
• Number of buffaloes 38.10 million
• The productivity of Indian cattle (944 kg/annum)
• The average size of herd in India is 2‐3 milch animals
• Dairy Cooperatives account for 60% share of processed liquid81 84 86 88 93 97 101 102 109 115 120Total Milk Production (MT) 2
• Dairy Cooperatives account for 60% share of processed liquid milk marketed in the India.
• About 16% of the world milk is produced in India
• Milk production is growing at 7% by volume and approximately10% by value
• Production level of milk is projected to increase to 190 million tones, worth’s 5 Lakh Crore by the year 2015
• Accounts for 21% of agricultural production of India
• The market size for milk and milk products (formal +informal sector) is estimated INR 3.6 lakh crores.
• The organized market is growing at nearly 10 percent in value terms annually
• Traditional dairy products account for about 50% of the total milk produced
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• The organized sector processes an estimated 20% of the total milk output in India
• Milk is processed and marketed by 170 Milk Producers’ Cooperative Unions
• Dairy Sector Contributes 17% of the Country’s Total Expenditure on Food
• Per capita milk consumption is around 276 g per day
• Dairy contributes to 16% of consumer spend on food –18% in Urban, 15% in rural
• Milk procurement price has grown by about 2.5 times in the last decade
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Key national Private Player
Aarey milk Parag
Aravind foods Mahaan foods
Britannia Vadilal
Dynamix dairy Vidya Dairy
mother dairy Gowardhan
VRS Foods
International Players
(Existing)
International Players
(Upcoming)
Nestle Alra Foods
Danone Fonterra with Britannia
Haston Land O’Lakes, Inc
Kerry Group
Schreiber Food With Dynamix
Coke
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2.1 Company Profile:
Dr. Kurien ushered in ‘White Revolution’ in India with ‘Operation Flood’, the largest project for
dairy development in the world. As a direct result, India became self-sufficient and global leader
in milk production and dairy farmers the architects in their own development.
This revolution led to an increase in milk production many fold which led to the co-operatives
declaring milk holidays around Pune. This adversity was circumvented by Mr. Devendra Shah
(They Founder & Chairman) by helping farmers by collecting their milk on such milk holidays.
And thus was born Parag Milk Foods Ltd.
Gowardhan, founded by Parag Milk and Milk Products Pvt. Ltd in 1992, is one of India's largest
private dairies, with an output capacity of 12,00,000 liters per day.
Located in a lush green village called Manchar in Maharashtra (60 km from Pune), and also
owns the largest cow farm in India as they will as Asia's largest cheese plant.
They are an ISO 9000 and AGMARK certified company, committed to international standards
of product quality. Their product portfolio includes Skim Milk Powder, Whole Milk Powder,
According to the survey done by me, I conclude that out of 242 sample 162 are Already existing
customer. I also found that Parag dairy do not advertise much, as compared to Amul. Also in
Surat city Parag products have only captured market in cheese other products are also available,
but milk is unavailable. And my finding will certainly help Parag Dairy to take further decision
and its sale and maximum its profits.
1. Given the competitive scenario in the Dairy products in India, Where competitors such as
Amul are introducing several innovative products Parag is able to well in cheese category.
2. Increasing price of Parag milk and other products will be a big challenge for Parag, because
these products are available in the market at comparatively lower price.
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3. Most of the customers are satisfied with the quality of the Parag Products.
4. Customer want to make the availability of the Parag products nearer to their home.
5. They Should Establish Parag Milk vending machine gives the Parag a competitive advantage
and enhance the availability among the customers.
6. Gowardhan Processed Cheese of company is high in demand among customers.
7. Most people were not aware about the company and their products other than GO
and Gowardhan.
Recommendation
After completion of the research work I came to some conclusion which could help the company
in development and improvement of service process. This is helpful in future development of the
company. The following points come in the suggestion parts which came after analysis and
conclusion of the research.
2. Company should continuously take feedback from market and consumer about
dairy based products
3. Open go & Gowerthan outlets for direct selling like (Amul)
4. The company should provide some incentive schemes for retailer also.
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5. Should have same pricing for distributors with similar market coverage and
Improve sales strategy which automatically increase buffer stock to
distributor point
6. The company should associate itself with some games or tournaments like
football, cricket and so on.
7. Company should provide sponsored seminar market intelligence – company
should maintain the healthy relationship with market distribution channel i.e.
Whole seller, distributor, retailers which will boost the brand image.
8. Distribution channel should be arranged according to the convenient of the
customer.
9. More milk ATM should be established to enhance the availability of Parag milk
10. Make the customers aware about the Parag products through different mode
of advertisement
11. Parag should offer refrigerators on installment to retailer
12. Parag should provide home delivery facility to their consumers.
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Conclusion
I have studied and analyzed the dairy based food product market of Parag dairy Products
on different aspects of the markets, outlets, distribution and consumers. The survey was
conducted in various areas of Surat city with great enthusiasm. This project report
concludes that Amul and Parag Dairy are easily available in various part of Surat. The
Parag distribution channel of the Amul is much strong because they own outlet in Surat
city. According to the consumer perception and data collection it is found that the Amul
is strongest competitor, and also majority people are satisfied with the quality and taste
of Parag milk products.
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Bibliography:
www.ssrn.com
www.paragmilkfood.com
www.amul.com
www.google scholar.com
www.google.com
www.moneycontrol.com
www.the money roller.com
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www.gowardhanindia.com
www.india note.com
www.livemint.com
www.gowardhanindia.co.in
www.timesofindia.com
www.business-standard.com
www.thehindubusinessline.com
www.reseachgate.net
Reference
1. Research Methodology – C.R Kothari, 2nd revised addition
2. Schiffman Leon and Kanuk, (1994) Consumer Behaviour (Fifth Edition), New Delhi: Prentice Hall of India.
3. Mary C. Jothi (2013) “A Study on Consumer Behavior of Aavin Milk in Bhel Township: Trichy” International Journal of Advance Research in Computer Science and Management Studies, ISSN: 2321-7782 (Online) Vol.1(4).
4.Ramanjaneyalu n. (2012) “Consumers’ behaviour and dealers’ perception towards dairy products – a case study of dharwad milk union of karnataka milk federation (kmf)”Asian Journal of Research in Social Science & Humanities, ISSN 2249‐7315, Vol. 2(2).
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5. Sarvesh Kumar and Sirohi Smita (2003), “Performance of Dairy Industry in Post- Liberalisation Period”, Indian Journal of Agricultural Economics, Vol. 58, No. 3, July-Sept, Pp. 631.
6. Rangasamy N. and Dhaka J.P (2008) Marketing Efficiency of Dairy Products for Co-operative and Private Dairy Plants in Tamil Nadu - A Comparative Analysis. Agricultural Economics Research Review Vol. 21 July-December, Pp: 235-242.
7. Sarvesh Kumar and Sirohi Smita (2003), “Performance of Dairy Industry in Post- Liberalisation Period”, Indian Journal of Agricultural Economics, Vol. 58, No. 3, July-Sept, Pp. 631.
8. Sharma. M.L., Raka Saxena and Dipan Das (2007), “Potential and prospects of Dairy Business in Uttarakhand: A Case study of Uttaranchal Co-operative Dairy Federation Limited”, Agricultural Economics Research Review, Vol. 20, Issue 2007, P. 23.