Project on Parag Dairy 222print
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Transcript of Project on Parag Dairy 222print
PART – 1
INTRODUCTION
1
AN INTODUCTION OF FMCG INDUSTRY
The FMCG sector is a cornerstone of the Indian economy. This sector can drive
growth, enhance quality of life, create jobs, and support penetration of
technology. A vibrant FMCG sector can boost agricultural product and export.
It contributed to the exchequer significantly disperse technology across the
value and user in the product innovation. This innovation can improve Indian
Health standards. Fast Moving Consumer Good (FMCG) industry has a long
history. However, the Indian FMCG began to take shape only during the last
fifty-odd years today the Indian FMCG industry continues to suffer from a
definitional dilemma. In fact, the industry is yet to crystallize in terms of
definition and market, size, among others. The definitional confusion that has
marked the Indian FMCG industry is getting confounded. Some call it the CPG
industry and some even call it the PMCG industry. The Indian FMCG industry
has suffered because of the confusion. It is an industry which touches every
aspect of human life from looks to hygiene to palate. Perhaps defining as
industry whose scope is so vast is not so easy The Government is at cross roads
knowing how and where slot the Indian FMCG industry and unsurprisingly, the
manner in which it has treated an industry which hold Tremendous promise as
producer as goods that pervade every day life has been only callous. The facts
that the FMCG industry is a noteworthy employer and a major tax payer are
being ignored. The only thing that is cheering the industry is the reforms of the
nineties. Post reforms, the industries is excited about a burgeoning rural
population whose income are rising and which is a willing to spend on goods
designed to improve lifestyle. What is needed now is a change in the mindset of
the mandarins, FMCG industry -friendly legislation are the needs of the hour. It
does not matter whether changes are being brought about by dawning market
realities or the ongoing economic reforms. One thing is certain here: The Indian
FMCG industry has a promising future to look forward to. In term of growth
2
potential, the Indian market is a great horse to bet on .With a little help and
understanding from the government, the Indian FMCG can realize its true
potential So for has been checked graph for the MNC’s operating in the Indian
FMCG industry domestic companies industry. It has taken tremendous
consumer insight and market savings for the FMCG players to reach where they
are today. But, the journey has only begun.
3
4
ABOUT THECOMPANY
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 Sitapur, the District 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 organized 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 organized in Luck now. Which stated collecting milk
from village and supplied to Sitapur and local markets .This milk union
continued function for about a decade in the means times Sitapur milk scheme
was established by government of India in 1959-60 to ensure cheaper milk to
the local pollution of Sitapur. The scheme stated through 7 chilling centers in
eastern U.P. The milk was mainly collected through contractors.7 milk unions
were also found almost at the same time, around each chilling center. These
continued functioning in a rather lop-sided manner till 1977. This programmer
was launched in Uttar Pradesh in 1973 and the implementing agency in the was
Pradeshik co-operative dairy federation limited which 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 Luck now district was taken
5
up bar out Sitapur, Laharpur,Biswa, Mahmudabad etc.feeded balancing dairy,
SitapurProducer’s Co-operative Milk Union Ltd was set up under operation
flood-1 programmer with the specific purpose of supplying milk of local
markets and other districts. Dairies and conversion surplus milk into various
dairy products. This dairy is situated in the middle of Sitapur. The dairy was
commissioned in April 1978 and processed the liquid milk procured from the
then milk shed comprising Sitapur. The purpose of establishing feeder
balancing dairy, Sitapur was to provide remunerative market for milk produced
in the milk shed comprising district of Sitapur; Barabanki, Rae Bareli, Kanpur
as envisaged under operation flood-1 scheme. Thus feeder balancing dairy was
blazed to receive entire surplus milk from the rural areas, through a network of
milk coop. In 1973-2010 the average handing of milk per day at fbd- Sitapur
Producer’s Co-operative Milk Union Ltd was 49,300kg. With peak handing of
1, 04,950kg in the feb. As the basic idea of establishing FBD-Luck now
Producer’s Co-operative Milk Union Ltd was to convert surplus milk into
various dairy-products, this activity started in September 1978with 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 Luck now 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:
Increasing processing capacity from 1 lack to 3.5 liters per day.
Increasing powder plant capacity from 10 tones to 40 tones per day.
Increasing the capacity of ghee plant from 1.m.t. to 4.m.t. per day.
Increasing the capacity of butter manufacturing up to 16.m.t. per day
The work of expansion has been complete in 1989.The work of expanded
dairy started functioning on full capacity in 1991-1993 year. The liquid
milk and products are selling in the market in the brand name of PARAG.
The milk product has been marketed by P.C.D.F. luck now. The sale of
6
liquid milk has been carried out Luck now 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;
PARAG provides hygienic, nutritious milk and milk product. In the year 1983
Operation 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 insure the supply of quality milk collected from the villagers which being
sold in the market area of city.
•To save the producers, villagers and the customers from the middle man.
•The milk is collected firstly to the society level then it comes to D.U.S.S. level
finely it comes under the state level i.e. federation
7
ANALYSIS OF MILK INDUSTRY
Traditionally, in India dairying has been a rural cottage industry. Semi-
commercial dairying started with the establishment of military dairy form and
co-operative milk unions throughout the country towards the end of nineteenth
century. In earlier years, house hold owns their own family cow or secured milk
from a neighbor who had one. With the increase in urban population fewer
households could afford to keep a cow for private use and moreover there were
other problems also like the high cost of milk production, problem of sanitation
etc. Restricted the practice; and gradually the family cow in the city was
eliminated and city cattle were all sent back to the rural areas. Gradually
farmers living near the cities took advantage of their proximity to the cities
and began supplying milk to the urban population; this gave rise to the fluid
milk-sheds we see today in every city of our country. Prior to the 1815 most
milk was necessarily produced within a short distance of the place
of consumption because of lack of suitable means of transportation and
refrigeration. The Indian Dairy Industry has made rapid progress since
independence .A large number of modern milk plant and product has since
being established. These organized dairies have been successfully engaged in
the routine commercial production of pasteurized bottled milk and various
western and dairy products. With modern knowledgeoftheprotection of milk
during transportation, it became possible to locate dairies where land was less
expensive and crops could be grown more economically.
In India, the market milk technology may be considered to have commenced in
1950, with the functioning of the Central Dairy of Aarey Milk Colony, and milk
product technology in 1956 with the establishment of Amul dairy, Anand Indian
dairy sector is still mainly and unorganized sector as barely 10% of our total
milk production undergoes organized handling.
8
Milk Yield Comparison
Country Milk Yield (Kgs. per year)
USA 7002
UK 5417
Canada 5348
New Zealand 2976
Pakistan 1052
India 795
World (Average) 2021
Source: Export prospects for agro-based industries, World Trade Centre,
Mumbai.
.
9
Milk production is relatively efficient way of converting vegetable material into
animal food. Dairy animals like cows, buffaloes, goats and sheep can eat fodder
and crop by products, which are not eaten by humans. Yet the loss of nutrients
energy and equipment required in milk handling inevitable make milk
comparatively expensive food. Also if dairying is to play its part in rural
development policies, the price to milk producers has to be remunerative. In a
situation of increased international prices, low availabilities of food aid and
foreign exchange constraints, large-scale subsidization of milk conception will
be difficult in the majority of developing countries.
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 cooperative strategies.
10
DAIRY DEVELOPMENT IN UTTAR PRADESH
(AT A GLANCE)
U.P. is the highest milk producing State in India having a share of 18% of the
total production of the country. The per capita availability of milk has gone up
to 224 grams. Dairy development programme is being implemented in State
through the following sectors:-
Cooperative Sector
Private Sector
Cooperative Sector:-
In the year 1917saw the advent of the First Co-operative Milk Society at
Katra,LUCKNOWIt was unfortunate that no special efforts were made in this
direction for then exit to decades. It was then in the year 1938
LUCKNOW PRODUCER’S CO-OPERATIVE MILK UNIONwas
established. In the coming years Lucknow, Varanasi,Kanpur, Haldwani,
Nainital and Lucknow Milk Unions saw the light of the day.
PRADESHIK COOPERATIVE DAIRY FEDERATIONLIMITEDwas
established in the year 1962. Initially the federation played the role of technical
advisor .As years went by PCDF Ltd. became proficient and was given the
11
World Bank assisted Operation Flood Programme in the State. Objectives of the
O.FProgramme are:-
(1) Capturing a dominant share of the urban milk to serve by a multitude small
milk vendors.
(2) Creating a procurement network to link numerous co-operative producer
societies in different milk shed areas to the organized urban dairy industry.
(3) Upgrading the milk production capacity of Indian bovine stock through a
programme of crossbreeding, veterinary services and auxiliary activities.
TheOperation Flood Programmein the state was being implemented by a three
tier co-operative structure.
(1) Dairy co-operative societies at the village level handling procurement of
milk.
(2) Co-operative milk unions at the district level engaged in processing and
product manufacturing .
(3) Pradashik Co-operative dairy federation at state level charged with
coordination of marketing.
Operation Flood-I was initiated in 1971 and covered 8 districts of the
Sitapur, Lucknow and Varanasi milk sheds. Besides Cattle Feed Factory
of one handed Metric Tone capacity each at Sitapur were established.
Operation Flood-II started in 1982, wherein coverage was extended to 28
districts.
Operation Flood-III launched in 1987 and included two more districts, so
that of the total 83 districts, was implemented in 30 districts/as of date the
coverage has been extended to 41 districts. The Operation Flood
Programme completed its third phase in the year 1994
Private sector:
12
Presently 25 registered private dairy are functioning in different districts of the
State, with a total handling capacity of 46.64 lacs liter per day. The Dairy
Development Department is also running some supportive programmes for
dairy development in state of Uttar Pradesh as:IMDP, WDP, RFWP, UPDASP,
SCP, ShwetKrantiYojna
IMDP – Intensive Mini Dairy Project:The largest employment generation programme named a IMDP under
DeenDayalRojgar Yojna was initiated in the year 1991. The programme was
launched in 17 districts of the Statein the first phase. In due course of time the
scheme at the Government level was renamed asVishesRojgarYojna. For the
year 1999-2000 the total number of mini dairy stands at 18,5000 in 73 districts
of the state.
WDP-WOMEN DAIRY P ROJECT
In its effort to remove gender basis the state government has initiated WDP
though government of India, where in part of the programme is being funded
under step programme of the State Government. The progress as on date reflects
2096 women societies with a membership of 80345
RFWP – Rural Family Welfare Programme :Under the agencies of SIFPSA
a family welfare project of running at present . It is an ideal programme for
family welfare though dairy co-operative society . It is currently operating in13
districts. Further 3 new districts will be added U.P.
UPDASP – Uttar Pradesh Diversified Agriculture Support Project:
A World Bank assisted Project it is operative through the following
components:- PHAP -Public Health Awareness Programme. The programme is
13
operational in 15 districts of the State for a period of MRCB – Milk Recording
& Conservation of Breed. The programmeisoperational in 07 districts of the
state for a period of Special Achievements/Initiatives The highest ever Milk
Procurement in a single day that touched the magical 13.58 Kgs Mark. Efforts
are on to bring in our Major Dairies under the ISO 9002 fold, wherein
LucknowDairy &Parag Dairy have already been awarded the ISO 9002
Certification. To fulfill the vision and the dream of strengthening the Federation
of that it is able to meet the ever increasing competition on all fronts an
SatatSudharYojna has been initiated. Total NMG supplies 3.20 lac liters/day
14
OBJECTIVES OF COMPANY
OBJECTIVES
PCDF’S front-end objective was to see that there was enough milk for everyone
in town. Marketing is simply the PCDF’S tool to achieve their ultimate
objective and delivering the pure parag milk to every home.
PURPOSE
PCDF’S aims to build a system to ensure that individual farmer got a fair price
for the milk he sold.
MISSION
PCDF’S mission is to become the strongest marketing organization by
2005.PCDF’S came in to existence in 23rd march 1938,with thesimple intension
of ensuring a fair return to the producers. Which was implemented in UP is the
year 1983-1984 provided the much needed impetus to co-operative. The
mission was to develop a product mix that would not only promote sustained
growth but also help member union to develop adequate Production and
processing facilities. It also aimed to offer quality products at fair price, and to
15
do so by achieving economies of scale and costs. And this mission gave birth to
brands like parag and Amul.
VISION
To increase it’s number of Parag milk customers and its turnover to 50 crores by
2005 by product diversification.
PRODUCT PROFILE
MILK PRODUCTS
(1)Butter
It contains less than 80% milk fat and more than 15% moisture and high acidity.
It is prepared exclusively from milk cream of curd of cow or buffalo milk
without the addition of salt, color or any preservative and is intended for
cooking or for preparation of Ghee.
(2)Ghee
About 43% of total quantity of milk produced in India is manufactured first into
butter and then converted into Ghee. Bulk of Ghee is derived from buffalo milk
because it is richer in fat that cow milk . In Parag surplus Butter muttedin steam
jacket kettles. Which are equipped with mechanical stirrers and heated with
steam till the moisture is removed.
(3) Paneer
In Parag, Paneer is produced by the traditional method in which citric acid is
added to the boiled milk and the milk immediately gets adulterated and water is
separated and paneer is obtained. It contains less than 50% frat of more than
60% moisture.
(4) Others
Skimmed milk powder, cake and khoya are other products produced by Parag.
16
Future Products
Some new products like coffee powder, ready to make ice-cream powder, baby
food and other milk drinks are in the testing stages.
PARAG’S MILK PRODUCTS:-
•Butter available in 20 gm., 100 gm., and 500 gm. packs.
•Pure Ghee available ½ Kg.
•Paneer - vailable in 100 gm.
•Skimmed milk powder - in 500 gm. cartons & 200 & 500 gm. plastic bottles
PRODUCTS OF THE COMPANY1. Liquid milk (Packed)
a) Parag Gold (full cream milk)
b. ParagTaaza (toned mikl)
c. Parag liter (skimmed milk)
d. Double Tonned Milk
2. Standard Loose Milk
3. Paneer
4. Butter
5. Parag Ghee
6. ParagPeda
17
7. ParagDahi
8. Parag Flavored Milk
9. ParagMattha
10. ParagChavalKheer
11. ParagChhenaKheer
12. ParagBesanLaddoo
18
19
20
21
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QUALITY CONTROL
Quality control is an essential and most important department for any
manufacturer. Today every organization has efficient quality control system.
Quality control is depend upon only practical (Survey Analysis and Right
Procedure).InS.D.U.S.S. Ltd. SITAPUR at reception point of milk from
different societies (Producers Villagers) Milk is collected and basic test are
carried out quickly after cleaning it is send for further processing. Finally after
pasteurization three type of milk obtain that is full cream milk, Toned
Milk,,Janta Milk.
Milk procedure out through some stages:-
1. ORGANO LEPTIC TEST –
It passes through three stages this is the first type of testing milk.
• Seeing
• Smell
• Testing
2. CLOT ON BOILING TEST –
After testing, checking is done between good and pour milk.
• Formalin test
• Soda test
• Urea test
• Sugar test
• Caustic test
These tests are based on clot on boiling test
23
3. S.P.C. (Standard plate count) TEST –
In this type of testing not more than 25000 Bacteria’s should be present in one
ml of milk.
4. CLR (Correct Lacto Meter Reading) Test –
In this type of testing is done to find out quantity of water in milk.11%, 135%
should be is LATIC ACID in the milk.
5. M.B.R.T. (Methyl Blue Reduction Test) –
M.B.R.T. test is done for milk pasteurization. Heating temperature should be 72
– 80Degree centigrade. Chilled temperature should be 5 degree below
6. S.N.F. Test (Solid not fat) –
S.N.F. test is based on lactometer test.
S.N.F.=CLR/R x .2 X fat %+.29 (this formula is used for Big lactometer)
S.N.F.=CLR/4 x .2 x 5%+.50 (this formula is used for small lactometer)
AFTER STERILIZATION NUMBER OF VITAL TEST ARE EXECUTED –
1. TOTAL SOLID TEST
2.ACIDITY TEST
3.SUCROSE TEST
4.TEXURE TEST
5. MILK FAD TEST
Milk fat test is used in GURBUR MACHINE and ACID.
FAT = 5 ML (Sulfuric Acid) + 10 ML Milk + 1 ML (Ethyl Alcohol)
This mixture is rotated in GURBUR MACHINE and quantity of fat in milk is
seen. The most important test i.e. phosphorous test and Methyl test Blue
reduction test.
1. Phosphorous test is user for confirm the pasteurization of milk
24
2. M.B.R.T. (Methyl Blue Reduction) test is used for maintaining appropriate
quality of milk in every half in hour. It is done with full responsibility and
care so that the offered product to the consumer could be reached with
appropriate CALORIFIC VALUE.
THE MAJOR PRIVATE COMPANIES ENTERING THE DAIRY
SECTOR ARE:-
(1) Milk specialties in Punjab.
(2) Amrutha Foods & Beverages at Bhubaneshwar,Orissa.
(4) J.K. Dairy & Foods of J.K. Industries atMuradabad in U.P.
(5) Khaitan Agro in Buland-Sahar in U.P
(6) Modern dairy in Karnal, Haryana
(7) Thapar Agro in Alvar, Rajasthan
(8) Gyan Dairy atLucknow U.P
(9) Gokul Dairy atLucknow U.P.
(10) Heritage foods in Chittor , Andhra Pradesh.
(11) Dhara Dairy at Kanpur U.P. The Dairy sector now processes in compelling
competition from private quarters; in order to survive the co-operative
sector now has to undergo a phase of corporate restructuring& up gradation
of product to live up to ultimate health & hygienic conditions.
25
INNOVATIONS TO BE MADE
Potential for Process InnovationsThe modernization of the manufacturing process of traditional dairy products is
long overdue. But, there is no need to reinvent the wheel because some of the
food processing method savailable in the west can be usefully adapted to mass-
produce traditional products. Some process modifications may, however,
become necessary.
Pioneers in the field1. In recent years, process innovations have been initiated at the National
Dairy Development Board (NDDB) and the National Dairy Research
Institute (NDRI) for theassembly-line production of burfi, dahi, kheer,
shrikhand, gulabjamun, rasagollas, mishtidoi and the like, by adapting the
Western tools and technology. The use of western products like
concentrated and dried milk powder for making chhana and khoa needs to
be adopted in modern dairy plants, as also at the halwai level.
2. An outstanding example of Western technology adaptation is the
manufacture of shrikhand on a large scale, using basket centrifuges, quarg
separators and planetary mixers, used by bakeries. Today, the volume of
shrikhand manufactured by the organized sector exceeds that of
processed cheese sold in India.
3. The most modern plant associated with the manufacture of traditional
dairy products isthe Baroda District Cooperative Milk Producers Union
Ltd. (Sugam Dairy) at Vadodarain Gujarat. It markets its products
through a large network of 150 retail outlets in the city. The Sugam Dairy
uses the traditional grocery/generalstores that have a refrigerator to
market its products. The product range includes shrikhand, gulabjamuns,
26
pedas and lassiapart from flavored milks. The dairy has the highest
turnover of a single unit, marketing traditional dairy products
The Mother Dairy in Calcutta markets mishtidoianddahiin a similar
fashion.Dairies in Punjab and Haryana market paneerandkalakand (also, lately,
milk cake).
Cooperative dairies in Tamil Nadu, Andhra Pradesh and Karnataka a
lsosellmakkhan( butter), khoa, peda(a form of sweetmeat) and kulfi. Warana
and Mahanand dairies in Maharashtra are also marketing shrikhand through
their sales outlets.
Potential for more
The manufacture of khoa, using roller dryers and other scraped surface heat
exchangers,is instance of the use of the Western technology.
UF/RO technologies can also be used for the making of chhana and
concentration of milk for many indigenous dairy products.
The use of meat ball forming machines and potato fryers for manufacturing
gulabjamun on large scale is a good example of integrating modern technology
with the traditional process.
The packaging of these products can also follow a similar approach.
In Italy, Mozzarella cheese balls are being packed in whey in consumer packs.
This can be tried to market rasagollas and gulabjamuns.Chocolate and candy
packaging lines can be used to pack burfiand peda. Tetrapaks can be used to
pack lassi, basundi, kheer and sevian
An example of this technique is the process by which the Japanese manufacture
Tofu,which resembles paneer.
The modernization of this sector will also result in energy savings.While
manufacturing sweets in the traditional manner, a lot of heat energy goes
wastewhich can possibly be recovered in a modern plant. Evaporation of milk in
a karahiconsumes five times more energy than in a vacuum evaporator. Whey is
27
being drained, today, from the small scale manufacture of paneer and chhena.
This causes pollution anddegradation of the environment. Most of the whey in a
modern plant can be recovered for the manufacture of lactose/lactates. Then,
India need not import some 5,000 tonnes of lactose annually. Rather, it may be
in a position to export it.
The preparation of these products by traditional methods needs to be studied
and welldocumented on a scientific basis. The technological parameters,
biochemical changes and the perishability of these products should be further
researched to develop unit processesrequired for the large scale manufacture.
Foreseeable Advantages of Process Innovation
Many ingredients used in the preparation of traditional dairy products are
adulterated. In fact, many food colors used in these products may actually be
carcinogenic. Branding of these products will lead to the use of pure ingredients
as the manufacturers would make serious efforts to protect their brand names.
The Bureau of Indian Standards (BIS) has
now worked out standard specifications for the quality of khoa, shrikhan,burfi,
rasagollas and gulabjamuns. This is encouraging, and the quality standards
should be specified for all other important traditional products.
Large scale manufacture of these products will also open possibilities for trying
out newer ingredients. The processed food industry in the United States has
emerged as the larges user of corn syrup solids and high fructose corn syrup.
These sweeteners add to the moisture retention properties of many foods apart
from adjusting the sweetness to a desired level. These are exciting possibilities
that can be explored to the advantage of the processors and consumers.
The production of traditional products through modern technology can ensure
utilizinglarger quantities of milk during the flush season, thus helping in
stabilizing farmer prices. The technology of recombining milk constituents can
also help in making these products available in the lean season,.and in far-off
28
places. Shrikhand is being manufactured in the winter for consumption in the
summer months, reducing the pressure on limited milk supplies during the lean
period. Khoa has also been stored at low temperatures for use in the summer.
The consumer will ultimately decide how far these modifications will be
accepted. The advent of convenience foods and their increased acceptability
will further support the modernization in this sector. While some attempts have
been made to strengthen the R&D base for indigenous dairy products, very little
use of modern technologies is being seen in the market place. A focused attempt
is needed in this direction
29
PART – 2
OBJECTIVE OF STUDY
30
OBJECTIVE OF THE STUDY
The most important objective of the project is that it is obligatory on the part of
the student of M.B.A. Programme to undergo the convention of the business
administration in the partial fulfillment of M.B.A. degree besides, project study
is a sort of practical training of eight weeks thus the student are benefited by
undertaking such a study as it helps organization in over coming administrative,
financial, marketing and other problems what ever they may be interested in for
the sake of simplicity the objectives of this study can be classified under three
heads:
PRINCIPAL OBJECTIVE
To find out the various strategies to be adapted by Parag to counter milk
sales of Amul in Lucknow .
To find various ways to increase Parag milk sales in Lucknow.
To discover the various factors which hurdles people to take Parag milk.
To identify various factors which motivates people to use Parag milk.
To discover the main reason beyond shifting of customers from Parag
milk to Amul milk.
ANCILLARY OBJECTIVE
To appraise the level of penetration of the brands of Parag.
SCOPE OF THE STUDY
The study is confined to finding various strategies to be adapted by Parag to
encounter Amul sales only in Lucknow.
31
FIELD WORK
Interview with the distributors, retailers, and customers to ascertain brand sales,
market share, brand awareness and performance of competing brands is tried to
fill up questionnaire before the customer of all levels.
RESEARCH METHODOLOGY
Research:-The study of research method provides you with the knowledge and skills you
need to solve the problem and meet the challenges of the fast- based decision.
Marketing environment we define Business Research as a systematic inquiry
whose objective is to provide information to solve managerial problem..
RESEARCH METHODOLOGY:-
1. Market research process
2. Statement of the problem
3. Research objectives
4. Preliminary investigation
5. Focus of the study
6. Study design
7. Sampling
8.Nature of data
9. Means of data collection
10. Survey is torment
11. Process of data collection
Marketing Research progress
32
Marketing research is the systemic design collection analysis and reporting of
data and funding relevant to a specific marketing situation facing the company.
Marketing Research progress Define the problem and research objective
Develop the research plan
Collect the Information
Analyze the Information
Present the findings
Make decision
Step 1: Define the problem & the research objectives
The 1 step in research is formulation a research problem. It is most important
stage as poorly defined problems will not yield useful results also the marketing
management must be careful not to define the problem to broadly or too
narrowly. In order to identify the research problem, 3 categories of symptomatic
situations, namely, overt difficulties, latent difficulties and unnoticed
33
opportunities should be studied over difficulties are those which manifest them
selves. Latent difficulties are those which are not so apparent and which, if not
checked, would soon become evident unnoticed opportunities indicate the
potential for growth in a certain area of marketing. Such opportunities are not
clearly seen and done effort is required to explore them.
Step 2: Develop the research plan
Designing a research plan calls for decision on data sources, choice of research
design, research approaches, research instruments, sampling plan and contact
methods.
Step 3: Collect the information
I have collected the information over a period of 45 days and from various
locations in Meerut region.
Step 4: Analyze the information
After the process of gathering information completed I tabulated the data and
extracted the finding from the survey
.
Step 5: Present the finding
Finally findings is to be presented along with was recommendations
Step 6: Make the decision
The last step is of making the decision
STATEMENT OF THE PROBLEM:
34
The present paper aims at finding the institutional consumer behavior. The
research problem investigated here in has been precisely defined as “Strategies
to be adopted by Parag to counter Amul milk sales in SITAPUR.’
RESEARCH OBJECTIVES:
To find out the various strategies to be adapted by Parag of milk Sales
Promotion in Sitapur.
To find various ways to increase the sales of Parag milk in Sitapur region.
To discover the various factors which hurdles people to take Parag milk.
To identify various factors, which motivates people to use Parag milk.
To discover the main reason for shifting of customers from Parag milk to
others.
PRELIMINARY INVESTIGATON:
After getting through of the research objective I go through step of the
preliminary investigation to find out the necessary information to fill out the
objectives of the study. The information expected to be collected on the basis of
the preliminary investigation are:-
1. The strategy of company for competing with the other company.
2. To find variousaysto increase the sales of Parag milk in Sitapur region.
3. The main reason for shifting of customers from Parag milk to others.
FOCUS OF STUDY:This study mainly focuses on:-
1. The satisfaction level of consumer and retailer. The study based on the
feedback collected from the filled questionnaire.
2. Whether the retailer and consumer satisfied with the supplied product or not.
3. If customer is satisfied up to what extent & if is not satisfied why, what is the
reason behind this.
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Sampling:
I used Random Sampling because from finite population refer to that method of
sample selection which gives each of possible sample of combination
probability of being picked up and each item in the entire population to have an
equal chance of being included in the sample.
Sample:-
The data has been collected by selecting a sample size of 100 sellers and 250
consumers, and various sampling techniques has been used to collect data.
Sampling techniques which has been used in data
COLLECTION OF DATASecondary data has been collected from
Secondary data is what the researcher collects from different sources . It also
helps me to getelaborate information to do my research.
Books
Magazines
Internet
Company annual reports
Research papers
Govt. Publications
Past Records And Files
Journals and periodicals pertaining to different brands and segments of
milk.
PRIMARY DATA The primary data have been collected with the help of a questionnaire, prepared
specially for the retailers and consumers to be administered for their responses
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Questionnaire
Direct Interview.
Advantage of sampling over complete census The main advantage of sampling technique over the complete enumeration
survey may be out line as fallow.
Less time.
Reduced the cost of survey.
Crate accuracy of the result.
Creator scope.
Both primary as well as secondary data has been used in study.
Research DesignSince the basic solution of the problem lies in the undertaking the human
behavior and processing numeric figures. Therefore the following research
design and techniques has been used to carry research.
Qualitative research.
Quantitative research.
Depth interview.
Indirect research. (used in need)
Marketing Mix:-
In market as there many types of products are available so it becomes difficult
for the markets to peruse the right segment market so that they can position their
product effectively to target customer. In order for this they use mix of tools of
marketing, which is, know as marketing mix. Marketing mix is a set of
marketing tools that the firm uses to peruse its marketing objectives in the target
37
market. Theses tool s can be classified broadly into four Ps of marketing:-
Product, Price, Place, and Promotion.
DISRIBUTUION CHANNELIn today’s economy, most producersdo not sale goods directly to final consumer. But between them and final consumer their stand host of marketing intermediaries such as Brokers, Distributors, retailers, sales agents searching of customers and may negotiate on behalf of the producers and do not take the title of the goods these are what called middleman A distribution channels performs the works of moving goods from the producer toconsumers. It overcomes the line, place and increases the utility of goods and services.
38
Collection of Milk Process InParag
TARGET MARKETFARMERS
Village CooperativeSocieties (with Chilling Units) Village Cooperative Societies (without Chilling Units)Local Restaurants/Others Milk Related Business Milk Sold to Village and Local Residents Milk Processing Union& Ware houses GDUSL Ware houses Ware houses and C & S Chilling Plants Home Delivery Contra ctors Retailers Network Services Veterinary Services. Animal Husbandry, Animal Feed Factory, Milk CanProducer.Agriculture University RuralManagementInstitute.TruckingFacilities
DISRIBUTUION CHANNEL
In today s economy, most producers do not sale goods directly to final
consumer. But between them and final consumer their stand host of marketing
intermediaries such as Brokers, Distributors, retailers, sales agents searching of
customers and may negotiate on behalf of the producers and do not take the title
of the goods these are what called middleman a distribution channels performs
the works of moving goods from the producer to consumer. It overcomes the
line, place and increases the utility of goods and services.
39
40
DATA ANALYSISSitapurDugdhUtpadaksahakariSangh Ltd. Sitapur:-(Civil Line and AwasVikas,Lalbag, Arya Nagar Shyamnath etc.)
Agents Survey Report:-I Have meet with around 100 sellers of milk and found the following information fromthe agent’s answer of the relevant questionnaire. These charts are made according tothe found data during summer training on 100 questionnaires.
Product No. of AgentsParag 60Amul 40
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INTERPRATAION- Here I have taken sample size of agent’s is 100
to understand the total market share of milk brand. There for we can
see that shop parag is more than Amul only 40% shops sale the Amul
out of 100% and Parag shop is 60%.
Q. 2- How Much Crates you sold in a day?Product No. of AgentsParag 790Amul 748
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No. of Agents
0
10
20
30
40
50
60
70
Parag Amul
INTERPRATAION
Sale of milk per day, of parag is 790 crates per day and sale of amul milk is 748 crates per day. Sale of Parag milk is better than Amul
Q.3- Are the availability of Parag milk is sufficient?
Response PercentageYes 80%No 20%
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INTERPRATAION-In my survey 80% agents satisfied with the availability of milk and 20% agents are not satisfied the availability of the milk.
Q.4- Are you satisfied with product delivery time?
Response PercentageYes 53%
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No 47%
INTERPRATAION -53% of agents said that delivery time of product is good and47% agents said that is bad.
Q.5- Margin of Sales is sufficient or not?
Response PercentageYes 30%
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No 70%
INTERPRATAION-
Most of the agents said that margin of sale is not sufficient and few agents said that margin of sale is sufficient
Q.6- Behavior of driver is?
Response Percentage Excellent 56%
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Good 24%Average1 2%Bad 8%
INTERPRATAION- In my survey 56% agents said that the behavior of driver isexcellent 24% agents said that it is good, 12% agents said that it is average and 8% said thatis bad.
Q.7- Quality of Parag is
Response Percentage
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Excellent 33%Good 46%Average1 13%Bad 8%
INTERPRATAION-During the survey 33% agents said that the quality of parag isexcellent, 46% said good, 13% said average and only 8% said that the quality of parag is bad.
Q.8- Customer purchase milk because of
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Factor Percentage Taste 23%Quality 54%Availability 15%Others 8%
.
INTERPRATAION -In my survey agents said that 23% customer purchase parag due to price, 54% due to quality, 15% due to availability and 8% due to others reason
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Report of Consumer
Q.1- Which Brand do you use?
Product Percentage
Parag 47%Amul 33%Others 20%
ITERPRATAION:During my survey it was observed that 47% consumers consumeParag milk, while 33% consumers consume Amul milk and 20% consumers consume other Milk brands including loose milk supplied by milkmen
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Q.2. How do you know about Parag Milk?
Medium PercentageAdvertisement 53%Shopkeeper 32%Others 15%
INTERPRETATION:-When customers were asked that how do They came to know about Parag milk 53% of customers replied through advertisement, 32% of Customers replied through their local shopkeepers and 15% Of customers replied by other means
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Q.3- Quantity Consumed by you?Quantity Percentage3 Litre 30%2 Litre 45%1+ Litre 13%1 Litre 12%
INTERPRETATION:I found my survey that 30% consumer consume 3 liter milk per day , 45% consumer consume 2 liter milk per day & 13 % consumer consume 1+ liter per daywhile only 12% consumer consume 1 liter of milk per
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Q.4- Why do you choose a particular brand?
Reason PercentageHome Delivery 10%Easy Availability 23%Price 22%Quality 45%
INTERPRETATION:
It was observed during survey that different person consume a particular brand
because Of many factors. 10% of consumers consume a particular Brand
of milk because of Home Delivery, while 23% of consumers Consume a
particular band of milk because of Easy availability and 22% of consumers
consume a particular brand because of Price, 45% of consumers consume a
Particular brand because of Quality of the product provided to them by
the company
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Q.5- Why are you using Parag Milk?
Reason Percentage
Home Delivery 5%
Easy Availability 28%
Price 16%
Quality 51%
INTERPRETATION:
When the customers using Parag milk where asked that they UseParag milk the
5% of customers replied with the answer Because of Home Delivery of the
Milk , 28% of customers replied with the answer because of Easy Availability,
while 16% of customers replied with the answer that Because ofParag Milk
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price is very good and rest51% replied with that the quality of parag milk is
very good
Q.6- Why are you not using Parag Milk?Reason PercentageHome Delivery 47%Easy Availability 18%Price 9%Quality 26%
INTERPRETATION:When customers not using Parag milk were asked reason for notusing the Parag milk many reasons were found . 9% of the customers do not prefer Parag because of its high price,18% of consumers do not consume Parag milk because of non-availability of the Parag milk at their earnest shopkeepers, while 47% of customers do not use Parag milk because of no home delivery service , 26% of consumers do not prefer Paragmilk because of Low Quality of Parag milk which they found in parag as their consideration.
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Q.7- How do you Purchase Milk?
Medium Percentage
Yourself 83%
Home delivery 17%
INTERPRETATION:
When customers were asked that How do they Purchase the milk than 83% of
customers with the Answer themselves and 17% of the customers responded
with the answer Home Delivery.
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Q.8- Do you want home delivery facility?
Response Percentage
Yes 88%
No 12%
NTERPRETATION:
When customers were asked that do they want home delivery of Parag milk,
88% of customers with the Answer yes and 12% of the customers responded
with the answer no.
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Q.9- Do you want home delivery facility regarding extra charge?
Response Percentage
Yes 75%No 25%
INTERPRETATION:
When customers were asked that do they want home delivery with extra charges
of Parag milk, 75% of customers with the Answer yes and 25% of the
customers responded with the answer no.
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Q.10- What type of Parag Milk do you used?
Type Of Milk Percentage
Standardized 37%
Full Cream 33%
Toned Milk 20%
Loose Milk 10%
INTERPRETATION:
When customers were asked that what type of Parag milk do they use more 37%
of customers replied with standardized milk,33% answered Full Cream, Toned
Milk 20% and 10% preferred loose milk
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Q.11- Are you change from one brand to another brand?
Response Percentage
Yes 53%
No 47%
INTERPRETATION:
When customers were asked that were they change from one brand to another
brand, 53% of customers with the Answer yes and 47% of the customers
responded with the answer no
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Q.12- Overall Experience with Parag?
Response Percentage
Excellent 10%
Good 61%
Fair 22%
Poor 7%
INTERPRETATION:
When customers were asked that what is the overall experience with Parag then,
10% of customers replied with the Answer excellent, 61% customers replied
good, 22% customers replied fair and 7% of the customers responded with the
answer poor.
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FINDINGS
There are many competitors in Sitapurlike Amul, Mother Dairy, Paras and
private milk product. Among all these Amulisthe strongest Competitors in the
field of butter while Anik and PARAG sell ghee but in The field of packed milk
PARAG is leading brand. If brands like Amul, Mother Dairy, Aras are not taken
seriously definitely after few span of Time they can take much share
of PARAG. So PARAG should take seriously this matter. The supply of private
milk product is not constant
FINDING OF RETAILER SURVEY
Amul is offering more incentives than Parag.
Amul has started to offer chilling equipments.
Most of the retailers associate themselves with Parag milk.
Parag products are sold more than others.
Retailer if provided more cooling equipment promises to stock more
Parag products.
Retailers have problem of advertising material, schemes related material
of Parag.
Retailers are more interested in products of those companies, which
offers moremargins to them.
FINDINGS OF ADVERTISEMENT
Mainly Parag inSitapur is not making advertisement through.
Media of advertise.
Stickers, Bunting, dangles
Dealers brand.
Hoarding.
Glow sign.
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Poster
Television Advertising
Newspaper and magazines
Wall painting.
FINDING S OF PRICE
Price is charged same as is charged by Amul, and rates are almost same
everywhere except in cinema Halls, Restaurants, Railway stations and hostels
where products are sold at higher price. Price ranges from Rs.12.50 per ½ liter
& Rs.25 per literate Most of them vanish in the summers. But PARAG and
Mother Dairy can compete future.
LIMITION OF STUDY AND DIFFCULTIES ENCOUNTERED
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Nothing in this universe is free from Limitations and present project
is not an Acceptation to it. Due to certain restrictions on the part of
potential customers as well as actual customers and Suppressed and
based responses from them,appropriate Figure for relevant data and
their interpretation Precisely this has been my personal experience
while Carrying out the present study. Some of the limitations I found
and difficulties encountered can be enumerated as under: Annual
reports and journals in the company was not readily available. Due to
time and budgetary constraint, the sample size was restricted. The
salesmen at the outlets showed their discontent with the tight
schedule. Most of the retail respondents showed their discontent with
the company for its unsystematic distribution, replacement, short
supply, incentives margin and so they were reluctant total about the
company.
People of the region were not conscious about the survey, so
they were not much supportive.
Near about 30% population of the city takes the service of
servants to bring their milk from market and reason for their
brand selection was not known.
Parag should change the packing of as it is not attractive and do
not seems to be standard and hygienic.
Parag should make 24hour availability of milk In the market in
order to improve their Sales.
Parag should offer home delivery services to Increase sales
Parag milk should be kept available at every shop.
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Parag should offer refrigerators On installments to retailers.
Parag should give emphasis on Punctuality and regularity in the
Supply of milk.
Parag offer promotional schemes to retailers as is done by
Amul.
Parag should offer some extra benefit to his customer and
supplier.
Parag should provide chilling equipments to their retailers at
low cost for storing their products.
Parag should give emphasis on Punctuality and regularity in the
Supply of milk.
Parag offer promotional schemes to retailers as free sample, gift
packs etc.
The organization should proper arrangement of milk at the time
of festivals etc.
Parag should provide home delivery facility to their consumers.
Parag should launch some new products also.
Parag should emphasize on provide better quality than others
instead of increasing the sale.
Parag should increase the number of retail shops, where the
retail shops of parag is not available.
Parag should emphasize on advertisement also
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SUGGESTION &RECOMMENDATION
Parag should change the packing of as it is not attractive and do not
seems to be standard and hygienic.
Parag should make 24hour availability of milk In the market in order to
improve their Sales.
Parag should offer home delivery services to Increase sales
Parag milk should be kept available at every shop.
Parag should offer refrigerators On installments to retailers.
Parag should give emphasis on Punctuality and regularity in the Supply
of milk.
Parag offer promotional schemes to retailers as is done by Amul.
Parag should offer some extra benefit to his customer and supplier.
Parag should provide chilling equipments to their retailers at low cost for
storing their products.
Parag should give emphasis on Punctuality and regularity in the Supply
of milk.
Parag offer promotional schemes to retailers as free sample, gift packs
etc.
The organization should proper arrangement of milk at the time of
festivals etc.
Parag should provide home delivery facility to their consumers.
Parag should launch some new products also.
Parag should emphasize on provide better quality than others instead of
increasing the sale.
Parag should increase the number of retail shops, where the retail shops
of parag is not available.
Parag should emphasize on advertisement also
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CONCLUSION
67
After detailed survey of Market I have reached to the following
conclusions: -No doubt PARAG holds a Market share of 85% in
case of milk in Sitapur. But at the same time
PARAG should not forget that AMUL is very old company and
has created an image of trust and faith in the minds of people,
and in the near future there could very strong
competition between the two companies, keeping that in view I
suggest PARAG to adopt following strategies to encounter
AMUL sales:
Parag has to maintain quality of the milk and try to improve it.
The organization has to work in such a way so as to reduce the
cost of milk which in turn will result in reduction in price.
Price should be reduced at least one rupee as compared to Amul.
The packing of the product should be more attractive as
compared to Amul, because during survey it was observed that
packing attracts many customers.
The milk should be available for 24 hours.
Parag should give their retailers refrigerators on installments for
which many of the retailers are ready to pay; many of retailers
are not keeping refrigerators because of unavailability of
refrigerators.
Possible to ensure 24hour milk availability in market, which not
found in moat cases.
Steps should be taken to ensure 24hour availability of milk.
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At many locations there is unavailability of milk, retailers
should be motivated to work with parag
.Amul is using more advertising measures than parag; parag
should also make use of advertisement.
Amul is offering verity of milk like tone milk, pasteurized milk,
milk powder and many.
Other, parag should also offer more verities.
The poly bags used by parag are less attractive and many written
things are in visible as many customers complained that the poly
bags used by parag seems substandard, unsecured and
unhygienic. Therefore parag should mostly change packaging of
milk.
BIBLIOGRAPHY
BIBLIOGRAPHY/REFERENCESBOOK REFERRED
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1: Collis J & Hussey R, Business Research (Palgrave,2003)2:Beri G C -Marketing Research (Tata McGraw-Hill ), 1993,2ndEdition3 : Philip Kotler – Marketing Management ( Pearson Edition ), 12th Edition4 : Kothari C R – Research Methodology (New Luck now, Vikas Publication House) 11thEdition
NEWS PAPER(1)The Hindu(2) Times of India(3) Dianek Jag ran(4) Business Standard
WEBSITE•www.indiandairy.com•www.amulindia.com•www.indiainfoline.com
•www.webindia123.com
CONSUMAR CONTACT DESCRIPTION
70
PLEASE ANSWER ALL QUESTIONS ASKED IN THE QUESTIONAAIRE
ANDSEEK FOR HELP IF ANY THING IS NOT CLEAR OR UNDERSTOOD
TO YOU.
NAME OF CUSTOMER:…………………………………………….
OCCUPATION: ______________________________________
ADDRESS: ______________________________________
MOBILE NUMBER: ______________________________________
No. OF FAMILY MEMBERS :
1 to 3( )
3 to 5 ( )
More than 5 ( )
MONTHLY INCOME:
BELOW 5000 ()
15000 to 20,000, ( )
20,000 to 50,000, ( )
MORE THAN 50,000 ( )
Q.no.1: Which brand of milk do you use?
(a) Parag ( )
(b) Amul ( )
(c) Otheres ( )
Q.no.2: How do you know about Paragmilk ?
(a) Advertisement ( )
(b) Shopkeeper ( )
(c) Others ( )
Q.no.3: Quantity used by you (In liter) ?
(a) 3 liters ( )
(b) 2 liters ( )
71
(c) 1+ liters ( )
(d) 1 liter ( )
Qno.4: Reason to choose a particular brand ?
(a) Home Delivery ( )
(b) Eaisly Available ()
(c) Quality ( )
Q.no.5: Reason for using Parag ?
(a) Quality ( )
(b) Price ( )
(c) Availability ( )
Q.no.6: Reason for not using Parag ?
(a) High Price ( )
(b) Non Availability ( )
(c) Not regular supply ( )
(d) Bad Taste ( )
Q.no .7: How do you purchase milk ?
(a)Yourself ( )
(b)Home Delivery ( )
Q.no.8: Response of customer about door delivery?
(a) Yes ( )
(b) No ( )
Q.no.9: Response of you regarding extra charges to door delivery ?
(a) Yes ( )
(b) No ( )
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Q.no. 10: What type of parag milk do you use?
(a)Standradized( )
(b) Full cream ( )
(c)Toned milk( )
(d) Loose Milk ( )
Q.no.11: Change from one brand to another brand
a) Yes ( )
b) No ( )
Q.no.12: Over all experience with Paraga)
(a) Excellence ( )
b) Good ( )
(c) Fair ( )
(d) Poor ( )
Q.no.13: Your suggestion with respect to Parag milk product?
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………
RETAILAR SURVEY FORM
NAME OF THA SHOP…………………………………ADDRESS…………………………………………………………
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sTEL.NO……………………………………………………………
Q.no.1: What are the milks you usually keep in your shop?(a)Parag (_)(b)Amul (_)(c)Mother Dairy (_)(d)Others (_)Q.no.2: Rate these milks in terms of volume of sales from 1 to 4.(a)Parag (_)(b)Amul (_)(c)Mother Dairy (_)(d)Others (_)Q.no.3: Does packing play any role in promoting sales?(a)Yes(b)NoQ.no.4: How you sold the milk?(a)At M.R.P.(b)Less Then M.R.P.(c)MoreTthen M.R.P.Q.no.5: How would you compare the services of Parag and Amul on the following?(Rank 1 to 4)P a r a g A m u l REQUENCY OF VISIT AT SELES PERSONAL……....TIMELY DELIVERY……………………………………DISPLAY SUPPORT………………………………….ANY OTHER………………………………………….Q.no.6: Customer purchase milk because of(a)Price(b)Quality(c)Availability(d)Others
Q.no.7: Behavior of Driver(a)GOOD(b) Excellent(c) Bad
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(d) AverageQ.no.8: Quality of Parag(a) Good(b) Excellent(c) Bad(d) AverageQ.no.9: Product delivery time(a) Good (b) BadQ.no.10: Agent originally belongs to(a) Parag(b) AmulQ.no.11: Margin on sales(a) Yes
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