A STUDY OF CONSUMER PERCEPTION ABOUT PARAG PRODUCTS AT KANPUR DUGDH UTPADAK SAHKARI SANGH LIMITED BY

MBA (Marketing) UNDER THE SUPERVISION OF

Mr. LALLAN YADAV HARSH VERMA

Submitted to:-

Department of Business Administration UNIVERSITY OF LUCKNOW

PARAG DAIRY, KANPUR 1

CERTIFICATE

PARAG DAIRY, KANPUR

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 0308-12 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

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 todays 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

TABLE OF CONTENTS

CHAPTER- I 1: INDUSTRY PROFILE 1.1: Dairy Industry 1.2: National Dairy Development Board (NDDB) 1.3: Pradeshik Co-operative Dairy Federation (PCDF) Ltd. Profile.... 1.4: Mission, Vision, Objectives And Services

PAGE NO. 10-11 12 13-14 15

CHAPTER- II 2: COMPANY PROFILE 2.1: About the company 2.2: Organizational Structure & Hierarchy.. 2.3: Products of the company... 2.3: SWOT Analysis. 17 18 20 27

CHAPTER- III 3: PROJECT 3.1: Introduction of the project...... 3.2: Objectives of the project ........................................ 3.3: Research Methodology.......

30 31 37-40

CHAPTER- IV 4: DATA ANALYSIS 4.1: Data Analysis & Interpretation...

PARAG DAIRY, KANPUR

41-50
6

4.2: Findings... 4.3: Limitations... 4.4: Suggestions And Recommendations... 4.5: Bibliography............................................................ 4.6: Annexure.

51-52 53-54 55-56 57 58-65

LIST OF TABLES
PAGE NO. TABLE NO. 1 - The preference of respondents towards each Parag products. TABLE NO. 2 - The response of respondents about Parag products consumption. TABLE NO. 3 - The response of respondents towards worthiness of Parag products. TABLE NO. 4 - The response of respondents towards buying preference due to Price, Brand name, Taste, Purity and Quality. TABLE NO. 5 - The response of respondents towards switching over to other brands if available at the same quality . TABLE NO. 6 - The response of respondents towards facing problem in availability of Parag products. TABLE NO. 7 - The response of respondents towards price of Parag products. TABLE NO. 8 - The response of respondents towards quality of Parag products. 49 48 47 46 45 44 43 42

PARAG DAIRY, KANPUR

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
PARAG DAIRY, KANPUR 8

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

CHAPTER-I
PARAG DAIRY, KANPUR 9

INDUSTRY PROFILE

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.
PARAG DAIRY, KANPUR 10

Indias 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. 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 Cooperative 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.

PARAG DAIRY, KANPUR

11

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.

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

PARAG DAIRY, KANPUR 12

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 (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 cooperative milk society was set up in Allahabad; Kanpur. In 1962, the PRADESHIK
PARAG DAIRY, KANPUR 13

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, its 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.

ABOUT PRADESHIK CO-OPERATIVE DAIRY FEDERATION LIMITED

Company Name

: Pradeshik Cooperative Dairy Federation Ltd (Parag)

PARAG DAIRY, KANPUR

14

Address Level of Office Phone No

: 29 Park Road : Head Office : 0522 - 2236035, 2236465, 2238584

Industry City State Pin

: Food Processing/ Beverages : Lucknow : Uttar Pradesh : 226001

Total Turnover No. of Employees Sector

: 800 - 1700 crs : 3000 4500 : 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 To create adequate marketing infrastructure for providing quality milk and milk To provide employment to rural unemployed youth through dairy farming.
PARAG DAIRY, KANPUR 15

village dairy cooperatives. To make dairy cooperatives self sustainable.

products to urban consumers. Social and economic upliftment of rural women.

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
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

PARAG DAIRY, KANPUR

16

CHAPTER-II
2: COMPANY PROFILE

2.1: ABOUT THE COMPANY

Name of the organization : Kanpur Dugdh Utpadak Sahkari Sangh Limited

Address of the organization : Nirala Nagar (Juhi), Kanpur

PARAG DAIRY, KANPUR 17

Established Registration Place of establishment Founder Board of Directors

: 1969 : 14th Nov 1969 : Nirala Nagar (Juhi), Kanpur : Rai Bhadur Gopal Lal Pandya : Mr. Gopal Pandya Mr. N.C.Chaturvedi Mr. Tej Shanker Mr. Pushkar Nath Bhatt

Per day production of milk Area of Distribution

: 13000 - 15000 litres : Armapur State, Kidwai Nagar, Barra, Panki, etc

2.2: ORGANIZATIONAL STRUCTURE

BOARD OF DIRECTORS PARAG DAIRY, KANPUR

18

MANAGING DIRECTORS

PRODUCTION MANAGER

PERSONNEL MANAGER

MARKETING MANAGER

FINANCE MANAGER

ASSISTANT MANAGER (DAIRY PLANT)

ASSISTANT MANAGER (P&A)

ASSISTANT MANAGER (MARKETING)

ASSISTANT MANAGER (FINANCE)

SUPRINTENDENT OFFICER

SUPRINTENDENT OFFICER

SUPRINTENDENT OFFICER

SUPRINTENDENT OFFICER

SALES SUPERVISOR

AIMS

&

OBJECTIVE

OF

THE

ORGANIZATION

PARAG DAIRY, KANPUR

19

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 animals health service to help cooperative milk unions to achieve this objective. To arrange collection, storage and transportation of milk and product. 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.

PARAG DAIRY, KANPUR

20

2.3: PRODUCTS OF THE COMPANY

PEDA

PURE MILK GHEE

BUTTER MILK

CURD

CHHACH

CHHENA KHEER

FLAVORED MILK

LADDOO

MATTHA

GULAB JAMUN

PANEER

TONNED MILK

PARAG GOLD

TABLE BUTTER

RASGULLA

PARAG DAIRY, KANPUR

21

Rate List

S. No.

Name of PARAG Products

Pack Size

Agent Rate (Rs. /-)

Consumer Rate (Rs. /-)

38.00

1.

PARAG GOLD

1 ltr

37.00

2. 3.

PARAG GOLD PARAG MILK

500 ml

18.50 28.00

19.00 29.00

TONNED 1 ltr

4.

PARAG MILK

TONNED 500 ml

14.00

14.50

5.

PARAG MILK

TONNED 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

PARAG DAIRY, KANPUR

22

9.

RAW MIX MILK

1 ltr

28.00

29.00

10.

PARAG GHEE POLY 1 ltr PACK

285.00

300.00

11.

PARAG GHEE POLY 500 ml PACK

144.00

151.00

12.

PARAG GHEE POLY 200 ml PACK

60.00

62.00

13.

PARAG GHEE (LOOSE)

1 ltr

290.00

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

PARAG DAIRY, KANPUR

23

20.

PARAG DAHI

MEETHA 200 ml

12.00

13.00

21.

PARAG SADA DAHI

200 ml

11.00

12.00

22.

PARAG FLAVORED 200 ml MILK

7.00

8.00

23.

PARAG FLAVORED 500 ml MILK (BOTTLE)

12.85

14.00

24.

PARAG KHEER

CHHENA 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

PARAG DAIRY, KANPUR

24

30.

PARAG RASGULLA

125 gm

23.00

25.00

31.

PARAG JAMUN

GULAB 1 kg

185.00

200.00

32.

PARAG JAMUN

GULAB 500 gm

92.50

100.00

33.

PARAG JAMUN

GULAB 125 gm

24.00

26.00

34.

PARAG LADDOO

BESAN 250 gm

40.00

42.50

35.

PARAG MATTHA

200 ml

5.00

6.00

36.

PARAG KHOYA

1 kg

205.00

220.00

PARAG DAIRY, KANPUR

25

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. 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.

INTRODUCTION OF MARKETING DIVISIONS

The marketing Management of Pradeshik Co-operative Dairy Federation Ltd. has been divided into parts:

1. 2.

Liquid milk marketing Milk product marketing

PARAG DAIRY, KANPUR

26

RESEARCH AND PRODUCT DEVELOPMENT

1.

Market research for identification of future consumers needs conceptualization of future product needs.

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.
PARAG DAIRY, KANPUR 27

 After testing pasteurization of the milk then test Bacterias 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:
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 NDBSs Sugam Dairy.

PARAG DAIRY, KANPUR

28

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

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.

PARAG DAIRY, KANPUR

29

GROWTH STAGE
Improve product quality, styling, add new features. Enter new market segment. Improve distribution coverage. Reduce price to attract price sensitive buyers.

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.
PARAG DAIRY, KANPUR 31

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 PROJECT

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. 3. 4.

To know what is its own image of organization in the market. To determine the appropriate delivery time of the PARAG milk product. To find satisfaction of consumer with PARAG products.

PARAG DAIRY, KANPUR

32

LIMITATIONS OF THE STUDY

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 customers. But the customers 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.

PARAG DAIRY, KANPUR

33

 Information provided by the customers may not be accurate. They may hide some of the information at the time of filling up the questionnaires.

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.

PARAG DAIRY, KANPUR

34

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 Organizations 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.

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
PARAG DAIRY, KANPUR 35

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

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
PARAG DAIRY, KANPUR 36

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.

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

PARAG DAIRY, KANPUR 38

INTRODUCTION
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 Learners 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.
PARAG DAIRY, KANPUR 39

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 competitors products positioning, MR is also useful to help create & enhance equity.

EXPLORATORY RESEARCH DESIGN

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

PARAG DAIRY, KANPUR

40

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
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.

PARAG DAIRY, KANPUR

41

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).

4: DATA ANALYSIS
PARAG DAIRY, KANPUR 42

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
FLAVORED MILK SWEET CURD MATTHA MILK CAKE BUTTER

Number of Consumers
52 32 50 14 06 PARAG DAIRY, KANPUR

Percentage
52 32 50 14 06 43

X axis
60 40 20 0 FLAVORED MILK SWEET CURD 52% 32%

CONS UMERPREF ERENCE

50% FLAVORED MILK SWEET CURD 14% 6% BUTTER MATTHA MILK CAKE MATTHA MILKCAKE BUTTER

Y axis

FIG.1 - The preference of respondents towards each Parag Products.

InterpretationThe 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. 2. What is the intake of the product you use?

TABLE NO. 2 - The response of respondents about Parag products consumption.

Product Name
Daily FLAVORED MILK MATTHA PANEER SWEET CURD 60 20 0 22

No. of consumers
Weekly 34 38 67 68 Monthly 08 42 33 10

PARAG DAIRY, KANPUR

44

CONS UMPTIONOFPROD UCTS

X axis
80 70 60 50 40 30 20 10 0 FLAVORED MILK MATTHA 8% 0% PANEER SWEET CURD 34% 67% 60% 42% 38% 20% 68%

Daily 33% 22% 10% Weekly Monthly

Y axis

FIG. 2 - The response of respondents about Parag product consumption.

InterpretationThe 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. 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
Yes No.

No. of consumers
84 16

Percentage
84 16

PARAG DAIRY, KANPUR

45

X axis
90 80 70 60 50 40 30 20 10 0

WORTHOFP ARAGPROD UCTSF OR CONS UMERS

84%

WORTH OF PARAG PRODUCT FORCONSUMER 16%

Y axis
YES NO

FIG. 3 - The response of respondents towards worthiness of Parag products.

InterpretationThe 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.

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
Price

No. of Consumers
54 PARAG DAIRY, KANPUR

Percentage
54 46

Brand Name Taste Purity Quality

16 64 54 68

16 64 54 68

X axis
70 60 50 40 30 20 10 0 54%

B AS ISOFB UYING
64% 54% PRICE BRAND NAME 16% TASTE PURITY 68%

PRICE

BRAND NAME

TASTE

PURITY

QUALITY

QUALITY

Y axis

FIG. 4 - The response of respondents towards buying preference due to Price, Brand

name, Taste, Purity and Quality. InterpretationFrom 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. 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
Yes No

No. of consumers
32 68 PARAG DAIRY, KANPUR

Percentage
32 68 47

X axis
70 60 50 40 30 20 10 0

O TH ERB RAND SPREF ERENCE

68%

32%

OTHER BRANDS PREFRENCE

YES

NO

Y axis

FIG. 5 - The response of respondents towards switching over to other brands if available

at the same quality. InterpretationAbove table shows that 32% consumers would switch over to other brands if available at the same quality and 68% consumers have no effect.

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
Yes

Consumers
88 PARAG DAIRY, KANPUR

Percentage
88 48

No

12

12

PROB L EMSREGARDINGNON AV AIL AB IL ITY OFP ARAGPROD UCTS X axis

90 80 70 60 50 40 30 20 10 0 YES NO 12% PROBLEMS REGARDING NON AVAILABILITY OF PARAG 88%

Y axis

FIG. 6 - The response of respondents towards facing problem in availability of Parag products. InterpretationAbove table shows that 88% consumers want more number of booths set up in their location and 12% consumers have no effect.

7.

Are you satisfied with the price of Parag Products?

TABLE NO. 7 - The response of respondents towards price of PARAG products.

Think
Yes No

Consumers
60 40

Percentage
60 40

PARAG DAIRY, KANPUR

49

X axis
60 50 40 30 20 10 0

S A TIS F ACTIONWITHPRICEOFP ARAG

60%

40%

SATISFACTION WITH PRICE OF PARAG

Y axis
YES NO

FIG. 7 - The response of respondents towards price of PARAG products.

InterpretationAbove table shows that mostly 60% consumers are satisfied with price of Parag products 40% are dissatisfied.

8.

Are you satisfied with the quality of Parag products?

TABLE NO. 8 - The response of respondents towards quality of PARAG products.

Think
Yes No

Consumers
92 08 PARAG DAIRY, KANPUR

Percentage
09 08 50

X axis
100 90 80 70 60 50 40 30 20 10 0

S A TIS F ACTIONWITHQUAL ITYOFP ARAG

92%

SATISFACTION WITH QUALITY OF PARAG

8%

YES

NO

Y axis

FIG. 8 - The response of respondents towards quality of PARAG products.

InterpretationAbove table shows that most of 92% consumers are satisfied with quality of Parag products and only 8% are dissatisfied.

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.
PARAG DAIRY, KANPUR 51

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.

PARAG DAIRY, KANPUR

52

4.2: FINDINGS

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.
PARAG DAIRY, KANPUR 53

 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.

PARAG DAIRY, KANPUR

54

4.3: LIMITATIONS

LIMITATIONS

PARAG DAIRY, KANPUR

55

 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.

PARAG DAIRY, KANPUR

56

4.4: SUGGESTIONS & RECOMMENDATIO NS

PARAG DAIRY, KANPUR

57

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.

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.

PARAG DAIRY, KANPUR

58

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 www.nddb.com www.paragmilk.com

PARAG DAIRY, KANPUR

59

4.6: ANNEXURE

PARAG DAIRY, KANPUR

60

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 ______________________________________________________

C. Contact No.:________________

Mob: _________________

D. Sex: Male Female

E. Occupation: Student Service

Job Retired Business

PARAG DAIRY, KANPUR 61

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 (b) Sweet curd (c) Mattha (d) Paneer (daily/weekly/monthly) (daily/weekly/monthly) (daily/weekly/monthly) (daily/weekly/monthly)

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

PARAG DAIRY, KANPUR 62

(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

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
PARAG DAIRY, KANPUR 63

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

Company Parag Amul Namaste India Mother Dairy

No. of consumer in % 54 19 21 6

PARAG DAIRY, KANPUR

64

MARK ETS H AREOFP ARAG

PARAG AMUL NAMASTE INDIA MOTHER DAIRY

6% 21%

54% 19%

INTERPRETATION:
1. 2. 3. 4. It is clear from the chart that 54% people give preference to Parag. 19% people give preference to Amul. 21% people give preference to Namaste India. 6% people give preference to Mother Dairy.

PARAG DAIRY, KANPUR

65

2. Which time of the day do you purchase the milk?

PURCH AS INGTIME

30% 46% MORNING EVENING BOTH

24%

INTERPRETATION:

1. 2. 3.

46% consumers are buying milk in the morning. 24% consumers are buying milk in evening. 30% consumers are buying milk in both the times.

PARAG DAIRY, KANPUR

66

3. How much quantity of milk you purchase per day?

QUANTITY NORMALLY DEMANDED OF MILK

QUANTITYD EMAND ED
6%

31%

1 LITRE 0.5 LITRE 63% 0.20 LITRE

INTERPRETATION:

1. 2. 3.

63% consumers are buying 1.0 litre milk. 31% consumers are buying 0.5 litre milk. 6% consumers are buying 0.20 litre milk.

PARAG DAIRY, KANPUR

67

THANK YOU!

PARAG DAIRY, KANPUR

68