“A STUDY OF CONSUMER PERCEPTION ABOUT PARAG PRODUCTS”
ATKANPUR DUGDH UTPADAK SAHKARI SANGH
LIMITED
BY
HARSH VERMAMBA (Marketing)
UNDER THE SUPERVISION OF
Mr. LALLAN YADAV
Submitted to:-
Department of Business AdministrationUNIVERSITY OF LUCKNOW
CERTIFICATE
PARAG DAIRY, KANPUR 1
PARAG DAIRY, KANPUR 2
DECLARATION
I hereby declare that the project, which is being presented in this report, entitled “A
STUDY OF CONSUMER PERCEPTION ABOUT PARAG PRODUCTS” in
Kanpur is an authentic record of my own work during the period from 20-06-12 to 03-
08-12 as a part of my MBA course of DEPARTMENT OF BUSINESS
ADMINISTRATION, UNIVERSITY OF LUCKNOW. The information which is
given by me in this report is exclusively for the concerned organization and the institute
would not be submitted by me anywhere else.
HARSH
VERMA
MBA (Marketing)
PARAG DAIRY, KANPUR 3
ACKNOWLEDGEMENT
I take this opportunity to submit my Summer Training project report on “A STUDY
OF CONSUMER PERCEPTION ABOUT PARAG PRODUCTS” in Kanpur
area and to acknowledge my deep sense of gratitude to Mr. LALLAN YADAV for
giving me an opportunity to work and get training in such a reputed organization under
his supervision.
In presenting this project report, I am grateful to all the faculty members who explained
me the objectives of the work done at KANPUR DUGDH UTPADAK SAHKARI
SANGH LTD. provided every kind of help I needed during the Summer Training
period and for extending their valuable guidance in every stage for completion of this
project.
I am also grateful to my colleagues who extended their cordial support to complete this
Summer Training project.
HARSH
VERMA
MBA (Marketing)
PARAG DAIRY, KANPUR 4
PREFACE
In today’s scenario, it is not possible that we get knowledge about the market without
practical training. By the practical training a management student can understand the
management working in the area of there specialization. Actually practical knowledge
increases the knowledge of students in real field of market & also integrates the
theoretical concepts with the practical working of the organization.
Accepting the above factors the management programs of my university has made
practical training must for their management students. As a part of the partial fulfillment
of the requirement of the course of Masters of Business Administration (MBA), summer
training was undertaken with KANPUR DUGDH UTPADAK SAHKARI SANGH
LTD. at KANPUR city. The purpose of the training was to study about the Consumer
Perception about Parag Products at KANPUR city only.
The tools & techniques used in the study are standard & modified according to the report
requirements. I used the primary and secondary data for collection of information. I had
enjoyed my summer training from the very first day. I tried to come across all the initial
steps related with my project in KANPUR DUGDH UTPADAK SAHKARI SANGH
LTD.
PARAG DAIRY, KANPUR 5
TABLE OF CONTENTS
CHAPTER- I PAGE NO.1: INDUSTRY PROFILE
1.1: Dairy Industry ………………………………………………………… 10-11 1.2: National Dairy Development Board (NDDB)………………………… 121.3: Pradeshik Co-operative Dairy Federation (PCDF) Ltd. Profile…….... 13-141.4: Mission, Vision, Objectives And Services …………………………… 15
CHAPTER- II2: COMPANY PROFILE
2.1: About the company…………………………………………………… 172.2: Organizational Structure & Hierarchy……………………………….. 182.3: Products of the company……………………………………………... 202.3: SWOT Analysis………………………………………………………. 27
CHAPTER- III3: PROJECT3.1: Introduction of the project…………………………………………...... 303.2: Objectives of the project ……………………........................................ 313.3: Research Methodology……………………………………………....... 37-40
CHAPTER- IV
PARAG DAIRY, KANPUR 6
4: DATA ANALYSIS 4.1: Data Analysis & Interpretation……………………………………... 41-504.2: Findings……………………………………………………………... 51-524.3: Limitations…………………………………………………………... 53-544.4: Suggestions And Recommendations………………………………... 55-564.5: Bibliography…………………............................................................ 574.6: Annexure……………………………………………………………. 58-65
LIST OF TABLES
PAGE NO.
TABLE NO. 1 - The preference of respondents towards
each Parag products. 42
TABLE NO. 2 - The response of respondents about
Parag products consumption. 43
TABLE NO. 3 - The response of respondents towards
worthiness of Parag products. 44
TABLE NO. 4 - The response of respondents towards buying
preference due to Price, Brand name, Taste, Purity and Quality. 45
TABLE NO. 5 - The response of respondents towards switching over to
other brands if available at the same quality. 46
TABLE NO. 6 - The response of respondents towards facing problem in
availability of Parag products. 47
T ABLE NO. 7 - The response of respondents towards price of Parag
products. 48
TABLE NO. 8 - The response of respondents towards quality of Parag
products. 49
PARAG DAIRY, KANPUR 7
LIST OF FIGURES
PAGE NO.
FIGURE NO. 1 - The preference of respondents towards
each Parag products. 42
FIGURE NO. 2 - The response of respondents about
Parag products consumption. 43
FIGURE NO. 3 - The response of respondents towards
worthiness of Parag products. 44
FIGURE NO. 4 - The response of respondents towards buying
preference due to Price, Brand name, Taste, Purity and Quality. 45
FIGURE NO. 5 - The response of respondents towards switching over to
other brands if available at the same quality. 46
FIGURE NO. 6 - The response of respondents towards facing problem in
availability of Parag products. 47
FIGURE NO. 7 - The response of respondents towards price of Parag
products. 48
FIGURE NO. 8 - The response of respondents towards quality of Parag
products. 49
PARAG DAIRY, KANPUR 8
CHAPTER-I
INDUSTRY PROFILE
PARAG DAIRY, KANPUR 9
1.1: DAIRY INDUSTRY
PROFILE
Today, India is 'The Oyster' of the global dairy industry. The Indian dairy industry is
rapidly growing, trying to keep pace with the galloping progress around the world. He
may transfer technology, sign joint ventures or use India as a sourcing center for regional
exports. The liberalization of the Indian economy beckons to MNC's and foreign
investors alike.
India’s dairy sector is expected to triple its production in the next 10 years in view of
expanding potential for export to Europe and the West. Moreover with WTO regulations
expected to come into force in coming years all the developed countries which are among
big exporters today would have to withdraw the support and subsidy to their domestic
milk products sector. Also to take advantage of this lowest cost of milk production and
increasing production in the country multinational companies are planning to expand
their activities here. Some of these milk producers have already obtained quality standard
certificates from the authorities. This will help them in marketing their products in
foreign countries in processed form.
PARAG DAIRY, KANPUR 10
The urban market for milk products is expected to grow at an accelerated pace of around
45% per annum to around Rs.55, 500 crores by year 2012. This growth is going to come
from the greater emphasis on the processed foods sector and also by increase in the
conversion of milk into milk products.
MAJOR PLAYERS
The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative
Milk Marketing Federation (GCMMF) is the largest player. All other local dairy
cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in
Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other
private players include J K Dairy, Heritage Foods, Indiana Dairy, etc. Amrut Industries,
once a leading player in the sector has turned bankrupt and is facing liquidation.
EXPORT POTENTIAL
India has the potential to become one of the leading players in milk and milk product
exports. Lavational advantage: India is located amidst major milk deficit countries in
Asia and Africa. Major Importers of milk and milk products are Bangladesh, China,
Hong Kong, Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other
gulf countries, all located close to India.
PARAG DAIRY, KANPUR 11
1.2: ABOUT NDDB
The National Dairy Development Board was created to promote, finance and support
producer-owned and controlled organizations. NDDB's programmers and activities seek
to strengthen farmer cooperatives and support national policies that are favorable to the
growth of such institutions. Fundamental to NDDB's efforts are cooperative principles
and co-operative strategies.
An institution of national importance
Due to very wide dispersal of producing and consuming units of milk, the unorganized
sector continues to dominate the milk marketing in India. The organized sector now
handles above 25% of the milk output in the country. The cooperative sector accounts for
nearly 55% of this.
It is hearting to note that the milk producers in the Anand modal of milk production get
net of intermediation, about 60% of the final price. In other basic foods, the returns are as
low as 30% of the final price. NDDB supports the development of dairy Cooperatives by
providing them financial assistance and technical expertise. Over the years, brands in
milk products created by cooperatives have become synonymous with quality and value.
Brands like Amul (GCMMF), Vijaya (A.P.), Verka (Punjab), Saras (Rajasthan), Nandini
PARAG DAIRY, KANPUR 12
(Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned
customer confidence.
1.3: PRADESHIK CO-OPERATIVE DAIRY
FEDERATION LIMITED
PROFILE
History of co-operative dairy industry in U.P. dates back to 1971 when “katra co-
operative milk society” was set up in Allahabad; Kanpur. In 1962, the PRADESHIK CO-
OPERARTIVE DAIRY FEDERATION was established, keeping in mind the aim to
consumers and also to help the backward classes and villagers economically.
Pradeshik co-operative dairy federation is a pioneer milk production with the main
objective of removing the middleman from transaction between producers and
consumers, it’s other objective care to nearest milk production and by products of the
milk. By keeping these objectives and aim in mind PRADESHIK CO-OPERATIVE
DAIRY FEDERATION was set up as the state level as apex body for launching
operation flood.
PARAG DAIRY, KANPUR 13
ABOUT PRADESHIK CO-OPERATIVE DAIRY
FEDERATION LIMITED
Company Name : Pradeshik Cooperative Dairy Federation Ltd (Parag)
Address : 29 Park Road
Level of Office : Head Office
Phone No : 0522 - 2236035, 2236465, 2238584
Industry : Food Processing/ Beverages
City : Lucknow
State : Uttar Pradesh
Pin : 226001
PARAG DAIRY, KANPUR 14
Total Turnover : 800 - 1700 crs
No. of Employees : 3000 – 4500
Sector : Public Sector
MISSION AND VISION
To bring 21% revenue villages of the state under cooperative fold. To procure 10% of the total marketable surplus milk produced in the state through
village dairy cooperatives. To make dairy cooperatives self sustainable. To create adequate marketing infrastructure for providing quality milk and milk
products to urban consumers. Social and economic upliftment of rural women. To provide employment to rural unemployed youth through dairy farming.
OBJECTIVES
PCDF's objectives are: Collection of milk directly from producers through Village Dairy Cooperative
Societies Increasing production of milk by providing technical support Eg. facilities for
breed improvement, providing good quality fodder seeds, training to farmers etc. Ensuring fair and remunerative prices to producers by the elimination of
middleman. Ensuring good quality milk available to urban consumers at reasonable price.
SERVICES
PARAG DAIRY, KANPUR 15
Many services are made available to Dairy Farmers through the village level societies also under TIP. These services are vital for his livestocks welfare and include veterinary, feed and fodder and training services. Some of the major training programs covered at our training institutes are as follows: -
Training of Village Dairy Cooperative Secretary Training of Village Dairy Cooperative Milk tester Training of Village Dairy Cooperative Managing committee members Training of Village Dairy Cooperative Pourer Member Training of field staff of district milk unions
CHAPTER-II
2: COMPANY PROFILE
PARAG DAIRY, KANPUR 16
2.1: ABOUT THE COMPANY
Name of the organization : Kanpur Dugdh Utpadak Sahkari Sangh Limited
Address of the organization : Nirala Nagar (Juhi), Kanpur
Established : 1969
Registration : 14th Nov 1969
Place of establishment : Nirala Nagar (Juhi), Kanpur
Founder : Rai Bhadur Gopal Lal Pandya
Board of Directors : Mr. Gopal Pandya
Mr. N.C.Chaturvedi
Mr. Tej Shanker
Mr. Pushkar Nath Bhatt
PARAG DAIRY, KANPUR 17
Per day production of milk : 13000 - 15000 litres
Area of Distribution : Armapur State, Kidwai Nagar, Barra, Panki, etc
2.2: ORGANIZATIONAL STRUCTURE
PARAG DAIRY, KANPUR 18
BOARD OF DIRECTORS
MANAGING DIRECTORS
FINANCE MANAGER
MARKETING MANAGER
PERSONNEL MANAGER
PRODUCTION MANAGER
ASSISTANT MANAGER (FINANCE)
ASSISTANT MANAGER (MARKETING)
ASSISTANT MANAGER (P&A)
ASSISTANT MANAGER (DAIRY PLANT)
AIMS & OBJECTIVE OF THE
ORGANIZATION
Dairy development programme aims at raising the level of income of rural milk
producers, providing them convenient marketing facilities at their door, as well good
quality milk and milk products to the consumers, particularly of the urban areas a
reasonable price.
Recommending specification for increasing productivity of milk producer and
related milk societies and member of milk union and members of milk union.
To provide encouragement incentives on production procure, processing and
marketing activities of milk products for the economic development of farmer
community.
To improved live stock health and disease control facilities by providing
veterinary services, artificial insemination and animal’s health service to help co-
operative milk unions to achieve this objective.
To arrange collection, storage and transportation of milk and product.
PARAG DAIRY, KANPUR 19
SUPRINTENDENT OFFICER
SUPRINTENDENT OFFICER
SUPRINTENDENT OFFICER
SUPRINTENDENT OFFICER
SALES SUPERVISOR
To establish collection and refrigeration centers, liquid milk units and
processing from various sources.
“Amul” products still have to face very tough competition in Kanpur with
Parag due to the efficient distribution network of the marketing divisions of the
PCDF.
MARKETING:
The federation is marketing milk & milk products, under a common brand name
PARAG. The clientele includes several prestigious institutions in UP & Delhi besides the
Indian army. The sales network is spread throughout northern India. Although PCDF
believe that a satisfied customer is their best advertisement.
2.3: PRODUCTS OF THE COMPANY
PEDA PURE MILK GHEE BUTTER MILK CURD
CHHACH CHHENA KHEER FLAVORED MILK LADDOO
PARAG DAIRY, KANPUR 20
MATTHA GULAB JAMUN PANEER TONNED MILK
PARAG GOLD TABLE BUTTER RASGULLA
Rate List
S. No. Name of PARAG
Products
Pack Size Agent
Rate (Rs. /-)
Consumer
Rate (Rs. /-)
1. PARAG GOLD 1 ltr 37.00 38.00
2. PARAG GOLD 500 ml 18.50 19.00
PARAG DAIRY, KANPUR 21
3. PARAG TONNED
MILK
1 ltr 28.00 29.00
4. PARAG TONNED
MILK
500 ml 14.00 14.50
5. PARAG TONNED
MILK
185 ml 4.50 5.00
6. PARAG NIRALA 500 ml 9.50 10.00
7. PARAG NIRALA 200 ml 3.50 4.00
8. PARAG NIRALA
LOOSE (CAN)
19.00 20.00
9. RAW MIX MILK 1 ltr 28.00 29.00
10. PARAG GHEE POLY
PACK
1 ltr 285.00 300.00
11. PARAG GHEE POLY
PACK
500 ml 144.00 151.00
12. PARAG GHEE POLY
PACK
200 ml 60.00 62.00
13. PARAG GHEE 1 ltr 290.00
PARAG DAIRY, KANPUR 22
(LOOSE)
14. PARAG GHEE
(TIN)
15 kg 3500.00
15. PARAG BUTTER 20 gm 5.50 6.00
16. PARAG BUTTER 50 gm 14.00 15.00
17. PARAG BUTTER 100 gm 28.00 30.00
18. PARAG BUTTER 500 gm 135.00 147.00
19. PARAG PEDA 250 gm 52.50 55.00
20. PARAG MEETHA
DAHI
200 ml 12.00 13.00
21. PARAG SADA DAHI 200 ml 11.00 12.00
22. PARAG FLAVORED
MILK
200 ml 7.00 8.00
23. PARAG FLAVORED
MILK (BOTTLE)
500 ml 12.85 14.00
PARAG DAIRY, KANPUR 23
24. PARAG CHHENA
KHEER
100 ml 12.00 13.00
25. PARAG CHHACH 500 ml 8.00 9.00
26. PARAG PANEER 1 kg 190.00 200.00
27. PARAG PANEER 200 gm 38.00 40.00
28. PARAG RASGULLA 1 kg 175.00 190.00
29. PARAG RASGULLA 500 gm 87.50 95.00
30. PARAG RASGULLA 125 gm 23.00 25.00
31. PARAG GULAB
JAMUN
1 kg 185.00 200.00
32. PARAG GULAB
JAMUN
500 gm 92.50 100.00
33. PARAG GULAB
JAMUN
125 gm 24.00 26.00
PARAG DAIRY, KANPUR 24
34. PARAG BESAN
LADDOO
250 gm 40.00 42.50
35. PARAG MATTHA 200 ml 5.00 6.00
36. PARAG KHOYA 1 kg 205.00 220.00
PRESENT STATUS OF PARAG AND ITS
PRODUCTS
Today the working capital of this milk union is more than 4 lakh litres per day as
compared to 320 litres per day at the beginning. It is expected than in the coming 4-5
years the plan will develop the capacity or producing 8 lakhs litres or more milk per
day.
PARAG DAIRY, KANPUR 25
In present time stall of company PARAG goes on peak and better in the market then
other brands of milk. Quality and purity of PARAG products is better. Demand of
PARAG products is more in the area.
Parag and its products are leader in the present market than other brands like Namaste
India & Mother dairy.
I NTRODUCTION OF MARKETING DIVISIONS
The marketing Management of Pradeshik Co-operative Dairy Federation Ltd. has been
divided into parts:
1. Liquid milk marketing
2. Milk product marketing
RESEARCH AND PRODUCT DEVELOPMENT
1. Market research for identification of future consumers needs conceptualization of
future product needs.
PARAG DAIRY, KANPUR 26
2. To develop prototypes of new products established market acceptance, demand &
study their feasibility and economics for commercial production.
3. Formulation of pre-lunch and post-lunch advertising and strategies for new
product for establishing a state demand of product.
4. Regular market survey for existing milk products
HOW THE INDUSTRY WORKS
The given points show PARAG industry bring normal milk, how by testing them
and take other steps and at last packing of the milk take place.
Firstly they collect milk from the villages nearby.
Loading of the milk in the tanker of the factory.
Then we pasteurize the milk with the help boiler house and Refrigeration house.
In the lab we test that whether milk has been Pasteurize or if it not then sends back
for Pasteurization or not if it not then sends back for Pasteurization again.
After testing pasteurization of the milk then test Bacteria’s are present in the milk
or not.
If Bacteria are not present in the milk has been send for packing and from there
packets of the milk come out.
2.3: SWOT ANALYSIS OF INDIAN DAIRY
STRENGTH:
PARAG DAIRY, KANPUR 27
The major strength of the traditional dairy products sector is the mass appeal enjoyed by
the wide variety of products. The market for these products far exceeds that for western
dairy products like milk powder, table butter and cheese. Their operating margins are also
much higher than the western dairy products. The increasing demand for these products
presents a great opportunity for the organized dairies in the country to modernize and
scale up the production.
WEAKNESS:
The major weakness of this sector is the practice of inadequate hygiene in the preparation
and handling of these products and their relatively short shelf life. The preparation and
marketing of these products is generally done by hallways, and that limits development in
the sector.
OPPORTUNITY:
The expanding business prospects provided by these products and their accompanying
value-addition, call for a through study of this sector. If would facilitate and increase in
the production and marketing of hygienically prepared and properly packed products to
meet the demand of a growing population as has been demonstrated at the NDBS’s
Sugam Dairy.
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.
STRATEGIES IN DIFFERENT STAGES OF PLC OF
PRODUCTS
PARAG DAIRY, KANPUR 28
INTRODUCTION STAGES:
1. Rapid Skimming :
Most of market unaware of product.
When award consumer are ready to pay high price.
There is the threat of competition coming quickly.
2. Slow Skimming :
Most of the markets are aware of the product.
Market is limited.
When there is threat of competition.
GROWTH STAGE
Improve product quality, styling, add new features.
Enter new market segment.
Improve distribution coverage.
Reduce price to attract price sensitive buyers.
PARAG DAIRY, KANPUR 29
CHAPTER- III
3: PROJECT
PARAG DAIRY, KANPUR 30
3.1: INTRODUCTION OF THE PROJECT
The Project is related to conduct a customer satisfaction survey to get knowledge about the
customers satisfaction level, their loyalty towards PARAG, market position of PARAG and
customers suggestion related to PARAG products that helps to provide competitive advantage
to the company against the competitors.
SCOPE OF THE PROJECT
To keep things in mind that as the ever-changing competitive business environment new
thoughts and ideas should pour into it, research & development to innovate its existing
products, which should be beyond competitors comprehension.
This study enables the user with answer to formulate an effective marketing mix strategy with
a broader prospective to tap areas where it did not feel the earlier, hence the decision of
whether to penetrate this section or not can be found out at the end of the data analysis.
It also gives ideas of the potential of our business in the future & the fluctuation in price from
time to time & from product to product.
Special reference is made to the improvement of product in term of packaging, product
innovation and advertisement that help to give competitive advantage against competitors.
OBJECTIVES OF THE PROJECTPARAG DAIRY, KANPUR 31
The market research was done with primary objective of studying the role of PARAG in
providing PARAG products to the consumer easily and according to their taste. Major
objectives of my survey were:
1. To know the consumer perception about the PARAG products and know the
positive & negative aspects of organization.
2. To know what is its own image of organization in the market.
3. To determine the appropriate delivery time of the PARAG milk product.
4. To find satisfaction of consumer with PARAG products.
LIMITATIONS OF THE STUDY
PARAG DAIRY, KANPUR 32
Though the detailed investigation is made in the present study, still there are following
limitations.
This study is restricted only to the ARMAPUR STATE. So, the results may
not be applicable to other areas.
This study is based on the prevailing customer’s. But the customer’s
perception may change according to time, fashion, technology,
development, etc.
As per the population of the study is huge; a sample size of 100 sample
respondents is only covered till now.
Data collection of exact data for the research is not possible because there is
a gap between what respondent say and what they actually do.
Information provided by the customers may not be accurate. They may hide
some of the information at the time of filling up the questionnaires.
PARAG DAIRY, KANPUR 33
CUSTOMER SATISFACTION
Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four perspectives of a Balanced
Scorecard.
In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.
MEASURING CUSTOMER SATISFACTION
Organizations are increasingly interested in retaining existing customers while targeting
non-customers; measuring customer satisfaction provides an indication of how successful
the organization is at providing products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation
of the state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other options the
customer may have and other products against which the customer can compare the
Organization’s products. Because satisfaction is basically a psychological state, care
should be taken in the effort of quantitative measurement, although a large quantity of
research in this area has recently been developed. The work done by Berry, between 2005
and 2006 defined ten 'Quality Values' which influence satisfaction behavior, further
expanded by Berry in 2007 and known as the ten domains of satisfaction.
PARAG DAIRY, KANPUR 34
These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease
of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors,
Commitment to the Customer and Innovation.
These factors are emphasized for continuous improvement and organizational change
measurement and are most often utilized to develop the architecture for satisfaction
measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry
between 2007 and 2008 provides the basis for the measurement of customer satisfaction
with a service by using the gap between the customer's expectation of performance and
their perceived experience of performance. This provides the measurer with a satisfaction
"gap" which is objective and quantitative in nature.
CUSTOMER LOYALTY BUSINESS MODEL
The loyalty business model is a business model used in strategic management in which
company resources are employed so as to increase the loyalty of customers and other
stakeholders in the expectation that corporate objectives will be met or surpassed. A
typical example of this type of model is: quality of product or service leads to customer
satisfaction, which leads to customer loyalty, which leads to profitability.
THE SERVICE QUALITY MODEL
A model by Kay Storbacka, Tore Strandvik, and Christian Gronroos (2001), the service
quality model, is more detailed than the basic loyalty business model but arrives at the
same conclusion. In it, customer satisfaction is first based on a recent experience of the
product or service. This assessment depends on prior expectations of overall quality
PARAG DAIRY, KANPUR 35
compared to the actual performance received. If the recent experience exceeds prior
expectations, customer satisfaction is likely to be high. Customer satisfaction can also be
high even with mediocre performance quality if the customer's expectations are low, or if
the performance provides value (that is, it is priced low to reflect the mediocre quality).
Likewise, a customer can be dissatisfied with the service encounter and still perceive the
overall quality to be good.
This model then looks at the strength of the business relationship; it proposes that this
strength is determined by the level of satisfaction with recent experience, overall
perceptions of quality, customer commitment to the relationship, and bonds between the
parties. Customers are said to have a "zone of tolerance" corresponding to a range of
service quality between "barely adequate “and "exceptional".
The existence of these bonds acts as an exit barrier. There are several types of bonds,
including: legal bonds (contracts), technological bonds (shared technology), economic
bonds (dependence), knowledge bonds, social bonds, cultural or ethnic bonds, ideological
bonds, psychological bonds, geographical bonds, time bonds, and planning bonds. This
model then examines the link between relationship strength and customer loyalty.
Customer loyalty is determined by three factors: relationship strength, perceived
alternatives and critical episodes. The relationship can terminate if:
The customer moves away from the company's service area.
The customer no longer has a need for the company's products
or services.
More suitable alternative providers become available.
The relationship strength has weakened.
PARAG DAIRY, KANPUR 36
PRODUCT FOCUS
In a product innovation approach, the company pursues product innovation, and then tries
to develop a market for the product. Product innovation drives the process and marketing
research is conducted primarily to ensure that a profitable market segment(s) exists for
the innovation. The rationale is that customers may not know what options will be
available to them in the future so we should not expect them to tell us what they will buy
in the future. However, marketers can aggressively over-pursue product innovation and
try to overcapitalize on a niche. When pursuing a product innovation approach, marketers
must ensure that they have a varied and multi-tiered approach to product innovation.
PARAG DAIRY, KANPUR 37
3.3: RESEARCH
METHODOLOGY
INTRODUCTION
PARAG DAIRY, KANPUR 38
My reseach project work is the study “A STUDY OF CONSUMER PERCEPTION
ABOUT PARAG PRODUCTS (Milk, Flavored Milk, Sweet Curd, Mattha, Butter”
in Kanpur. This chapter includes signification of research, research design, sample size,
sampling method, method of data collection etc.
MEANING OF RESEARCH:-
Research in common pariance refers to a search for knowledge. One can also define
research as a scientific systematic research for pertinent information on a specific topic.
In fact, research is an art of scientific investigation.
The Advanced Learner’s Dictionary of current English lays down the meaning of
research as “a careful investigation or inquiry especially through search for new facts in
any branch of knowledge”.
RESEARCH METHODOLOGY
“Marketing Research” is a key to evolution of successful marketing & programmes. It
is an important tool to study buyer behaviors, changes in consumer life style &
consumption patterns brand loyalty and forecast market changes. Research is also used to
study competition & analysis the competitor’s products positioning, MR is also useful to
help create & enhance equity.
EXPLORATORY RESEARCH DESIGN
PARAG DAIRY, KANPUR 39
Exploratory research studies are also term as formulating research studies. The main
purpose of such studies is that of formulating a problem for more precise investigation or
of developing the working hypothesis from an operational point of view the major
emphasis in such studies is on the discovery of idea and insights. As such there research
design appropriates for such studies must be flexible enough to provide opportunity for
considering different aspect of a problem under study. Present research is exploratory in
nature it is aim together relevant information customer perception towards PARAG
PRODUCTS in Kanpur, and about their loyalty towards the PARAG.
For this research project two types of data has been use
a. Primary data
b. Secondary data
PRIMARY DATA
Primary data are those, which are collected for the first time and are those original in
character. Primary data are in the shape of raw material to which statistical method are
applied for the purpose of analysis & interpretation primary are been collected in market
by following method :-
Questionnaire(100) respondents
I have been collecting primary data by the method of survey of persons. Because of
systematic gathering of data from respondents through questionnaire, which is objective
oriented, unambiguous interesting, simple, accurate and systematic motivating to
respondent and complete in information concern?
SECONDARY DATA
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Secondary data are those which have already been collected by some other person and
which have been passed through the statistical machine at least once.
I collect the Secondary data with the help of company records and company website etc.
EXTERNAL DATA:
This type of Secondary data can be obtained from the outside sources e.g. magazine,
journal, newspaper, article and the World Wide Web.
METHOD OF DATA COLLECTION:
As the research is about consumer behavior so Questionnaire is the best method to
collect information about the consumer perception.
AREA OF THE STUDY:
This study covers Armapur State only.
SAMPLE SIZE:
The sample size covered for the purpose of this study is 100.
SAMPLING METHOD:
Stratified sampling (I have done my research in specific area).
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4: DATA ANALYSIS
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4.1: TABULATIONS OF DATA
1. Which of the Parag products do you consume?
TABLE NO. 1 - The preference of respondents towards each Parag Products.
Product name Number of Consumers Percentage
FLAVORED MILK 52 52
SWEET CURD 32 32
MATTHA 50 50
MILK CAKE 14 14
BUTTER 06 06
FIG.1 - The preference of respondents towards each Parag Products.
Interpretation-
The above table shows that 52% consumers are consuming Flavored milk, 32%
consumers are consuming Sweet curd, 50% Mattha, 14% Milk cake, 6% Butter and 8%
Paneer.
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X axis
Y axis
2. What is the intake of the product you use?
TABLE NO. 2 - The response of respondents about Parag products consumption.
Product Name No. of consumersDaily Weekly Monthly
FLAVORED MILK
60 34 08
MATTHA 20 38 42
PANEER 0 67 33
SWEET CURD 22 68 10
FIG. 2 - The response of respondents about Parag product consumption.
Interpretation-
The above table shows that 60%, 20%, 8% Flavored milk, 20%,38%,42% Mattha,
0%, 67%,33% Paneer, 22%,68%,10% Sweet curd consumer use Daily, Weekly, Monthly
respectively.
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Y axis
X axis
3. Do you think that Parag products are worth the money paid by
you?
TABLE NO. 3 - The response of respondents towards worthiness of Parag products.
Think No. of consumers Percentage
Yes 84 84
No. 16 16
FIG. 3 - The response of respondents towards worthiness of Parag products.
Interpretation-
The above table shows the 84% consumers think that Parag products are worth the money
paid by them, 16% consumers think that Parag products are not worth the money paid by
them.
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X axis
Y axis
4. Which basis you consider while buying Parag products?
TABLE NO. 4 - The response of respondents towards buying preference due to Price,
Brand name, Taste, Purity and Quality.
Cause of buying No. of Consumers Percentage
Price 54 54
Brand Name 16 16
Taste 64 64
Purity 54 54
Quality 68 68
FIG. 4 - The response of respondents towards buying preference due to Price, Brand
name, Taste, Purity and Quality.
Interpretation-
From the above table it is clear that mostly 68% consumers are buying Parag products
due to its better quality, 64% due to taste, 54% due to price & purity and 16% due to
brand name of it.
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Y axis
X axis
5. If other brands are available at the same quality, would you like
to switch over to other brands?
TABLE NO. 5 - The response of respondents towards switching over to other brands if
available at the same quality.
Think No. of consumers Percentage
Yes 32 32
No 68 68
FIG. 5 - The response of respondents towards switching over to other brands if available
at the same quality.
Interpretation-
Above table shows that 32% consumers would switch over to other brands if available at
the same quality and 68% consumers have no effect.
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Y axis
X axis
6. Do you come across problems regarding the non availability of
Parag products?
Table No. 6 - The response of respondents towards facing problem in availability of
Parag products.
Think Consumers Percentage
Yes 88 88
No 12 12
FIG. 6 - The response of respondents towards facing problem in availability of Parag
products.
Interpretation-
Above table shows that 88% consumers want more number of booths set up in their
location and 12% consumers have no effect.
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X axis
Y axis
7. Are you satisfied with the price of Parag Products?
TABLE NO. 7 - The response of respondents towards price of PARAG products.
Think Consumers Percentage
Yes 60 60
No 40 40
FIG. 7 - The response of respondents towards price of PARAG products.
Interpretation-
Above table shows that mostly 60% consumers are satisfied with price of Parag products
40% are dissatisfied.
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X axis
Y axis
8. Are you satisfied with the quality of Parag products?
TABLE NO. 8 - The response of respondents towards quality of PARAG products.
Think Consumers Percentage
Yes 92 09
No 08 08
FIG. 8 - The response of respondents towards quality of PARAG products.
Interpretation-
Above table shows that most of 92% consumers are satisfied with quality of Parag
products and only 8% are dissatisfied.
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X axis
Y axis
Analysis & Interpretations of Data
64% consumes are satisfied with the taste of Parag products & 36% consumers are dissatisfied.
60% consumers are satisfied with the price of Parag products & 40% consumers
are dissatisfied.
92% consumers are satisfied with the quality of Parag products & 8% consumers
are dissatisfied.
88% consumers want more number of Parag booths to be set up in their locality &
12% have no effect.
32% consumers have positive response to switch over, if other brands are available
at the same quality & 68% consumer have no effect.
We contacted with 100 consumers, 54 consumers are using Parag Milk but 46
consumers use other brands.
During the survey I found 63% consumers are buying 1 litre milk, 31%
consumers are buying 0.5 litre milk and 6% consumers are buying 0.25 litre milk.
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4.2: FINDINGS
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FINDINGS
By the help of analysis & interpretations of the data we come to some findings, these
findings are as follows.
PARAG has good market position in the regional market. It holds 54% of market
share. This shows the loyalty of customers towards PARAG.
Most of the customers are satisfied with the quality & availability of PARAG
products.
Increasing price of PARAG milk & other products are the big challenge for the
PARAG, because these products are available in the market at the comparatively
lower price.
Customers want to make the availability of the PARAG products nearer to their
home.
Establishment of PARAG milk ATM gives the PARAG a competitive advantage
and enhance the availability among the customers.
40% of customers are not satisfied with the price of the PARAG products. They
suggest the reduction in the price of PARAG products.
Some customers want to improve the packaging of the PARAG products.
Most of the customers are aware about the new PARAG products from the retailer
shops.
That is retailers are the main source of making the customer aware about the
PARAG products.
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4.3: LIMITATIONS
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LIMITATIONS
Some of the respondents were not co-operative.
Some respondents were hesitating to give the details.
Biasness is another limitation that the scope of the survey.
The reliability and scope of survey greatly relies on the cooperation of the
respondents.
Due to illiteracy of some respondents, specific information could not be
recovered.
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4.4: SUGGESTIONS
&
RECOMMENDATIO
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SUGGESTIONS & RECOMMENDATIONS
1. More milk ATM should be established to enhance the availability of Parag milk.
2. Make the customers aware about the Parag products through different mode of
advertisement.
3. There should be no leakage in the liquid milk & if the exists than these packets
should be replaced.
4. Packing of the liquid milk should be reusable that helps to reduce the price of the
products.
5. Online information about the Parag products & trading should be facilitates by the
company.
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6. There should be regular visit for getting the customer feedback about the Parag
products. This helps to know the changing demand of the customers.
7. For fulfilling the increasing demand of milk the company should try to increase the
production.
4.5: BIBLIOGRAPHY
1. BOOKS:-
Research Methodology – C. R. Kothari
Principles of Marketing – Philip Kotler
2. OTHER SOURCES:-
India Today
Business World
Annual Report of Parag
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QUESTIONNAIRE
This questionnaire has been designed for a survey on “A STUDY OF CONSUMER
PERCEPTION ABOUT PARAG PRODUCTS (Milk, Flavored Milk, Sweet Curd,
Mattha, Butter” in KANPUR. Your inputs will be crucial in making final study. Please
take a couple of minutes in completing this brief questionnaire. This is confidential and
just for purpose of study. So please provide true inputs.
A. Full Name: _________________________
B. Address ______________________________________________________
PARAG DAIRY, KANPUR 60
C. Contact No.:________________ Mob: _________________
D. Sex:
Male Female
E. Occupation:
Student Service
Job Retired Business
Unemployed
1. Which of the Parag products do you consume?
(a) Flavored milk
(b) Sweet curd
(c) Mattha
(d) Butter
2. What is the intake of products your use?
(a) Flavored milk (daily/weekly/monthly)
(b) Sweet curd (daily/weekly/monthly)
(c) Mattha (daily/weekly/monthly)
(d) Paneer (daily/weekly/monthly)
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3. Do you think that Parag products are worth the money paid by you?
(a) Yes
(b) No
4. Do you come across problems regarding the non availability of Parag
products?
(a) Yes
(b) No
5. Which basis you consider while buying Parag products?
(a) Price
(b) Brand Name
(c) Taste
(d) Purity
(e) Quality
6. If other brands are available at the same quality, would you like to switch
over to other brands?
(a) Yes
(b) No
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7. Do you want more number of Parag booths to be set up in your location?
(a) Yes
(b) No
8. Are you satisfied with the price of Parag Products?
(a) Yes
(b) No
ACTIVITY-1
MARKET SHARE OF DIFFERENT MILK COMPANIES IN KANPUR
During the project a survey is being conducted to know the market share of Parag in
Armapur State. This survey is been done among 100 people. This is shown with the help
of following table and Pie chart:
1. Which brand of milk you usually prefer to use?
Table No. 1.1
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Company No. of consumer in %
Parag 54
Amul 19
Namaste India 21
Mother Dairy 6
INTERPRETATION:
1. It is clear from the chart that 54% people give preference to Parag.
2. 19% people give preference to Amul.
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3. 21% people give preference to Namaste India.
4. 6% people give preference to Mother Dairy.
2. Which time of the day do you purchase the milk?
INTERPRETATION:
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1. 46% consumers are buying milk in the morning.
2. 24% consumers are buying milk in evening.
3. 30% consumers are buying milk in both the times.
3. How much quantity of milk you purchase per day?
QUANTITY NORMALLY DEMANDED OF MILK
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INTERPRETATION:
1. 63% consumers are buying 1.0 litre milk.
2. 31% consumers are buying 0.5 litre milk.
3. 6% consumers are buying 0.20 litre milk.
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THANK YOU!
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