TABLE OF CONTENTS

Introduction Indian Dairy Industry Importance of the Study Objective of the Study Profile of Amul Profile of Parag Dairy Product Range of Parag Dairy & Amul Dairy Based Products Research Methodology Findings Suggestions & Recommendation Conclusion Appendix o Bibliography o Questionnaire

INTRODUCTION
"Comparative Study of Amul and Parag Dairy and Dairy based Product in Agra. In India underdeveloped countries desirous of accelerating economic development emphasis the need of

industrialization so much that they almost forget that the development of Consumer used the daily need products. Therefore must either precede occur simultaneously with Milk Product Industry development growth in Company. Therefore requires a high degree of Industry development to sustain a desirable rate of economic growth. Gujarat Cooperative Milk Marketing Federation (GCMMF), the largest food company in India,. Its flagship brand 'Amul' was the market leader in butter, whole milk, cheese, ice cream and dairy whitener. GCMMF was the largest cooperative movement in India with 2.2 million milk producers of Gujarat organized in 10,552 cooperative societies. GCMMF collected 5 million liters of milk per day from its shareholders who owned 3.2 million buffaloes, one million cows and 0.3 million crossbred cows. The Federation's extensive marketing network comprised 3000 distributors and 500,000 retailers spread across the country.

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Parag Dairy, 31% subsidiary of Parag Dairy, is among the leading branded food player in the country. It has a broad based presence in the foods sector with leading market shares in instant coffee, infant foods, milk products and noodles. It has also

strengthened its presence in chocolates, confectioneries and other semi processed food products during the last few years. The company has launched Dairy Products like UHT Milk, Butter and Curd and also ventured into the mineral water segment in 2001. Parag Dairys leading brands. Following the recent general agreement on tariff and trade to a globalization of markets will call for competitiveness and efficiency in the dairy sector in terms of productivity, risk coverage, nutritional qualities and adaptability. The dairy industry will have to Asses its strength and weakness in terms of vertical development, timely production, its processing storage, and marketing. In dairy farming is still in its growing phase, ongoing policy, initiative ness will have to suit domestic requirement. It should also capture a potential share of the international trade. In this endeavor, development of farm working technologies and their assessment, assignment, and creation of awareness about their potentials will be paramount importance.

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INDIA'S DAIRY INDUSTRY:

The world's biggest dairy producing country is growing fast and looking to become an export powerhouse despite major quality problems... A Note to our Readers: the following information on India's dairy sector is reproduced from India Infoline.com. India is the world's largest milk producing country and is growing fast, with an eye toward becoming a major dairy exporter. This article is helpful reading for anyone interested better understanding Consumer Habits And Practices Milk has been an integral part of Indian food for centuries. The per capita availability of milk in India has grown from 172 gm per person per day in 1972 to 182gm in 1992 and 203 gm in 1998-99.This is expected to increase to 212gms for 1999-00. However a large part of the population cannot afford milk. At this per capita consumption it is below the world average of 285 gm and even less than 220 gm recommended by the Nutritional Advisory Committee of the Indian Council of Medical Research. There are regional disparities in production and consumption also. The per capita availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm per person per day. This Page 4 of 81

disparity is due to concentration of milk production in some pockets and high cost of transportation. Also the output of milk in cereal growing areas is much higher than elsewhere which can be attributed to abundant availability of fodder, crop residues, etc which have a high food value for milch animals. In India about 46 per cent of the total milk produced is consumed in liquid form and 47 per cent is converted into traditional products like cottage butter, ghee, paneer, khoya, curd, malai, etc. Only 7 per cent of the milk goes into the production of western products like milk powders, processed butter and processed cheese. The remaining 54% is utilized for conversion to milk products. Among the milk products manufactured by the organized sector some of the prominent ones are ghee, butter, cheese, ice creams, milk powders, malted milk food, condensed milk infants foods etc. Of these ghee alone accounts for 85%. It is estimated that around 20% of the total milk produced in the country is consumed at producer-household level and remaining is marketed through various cooperatives, private dairies and vendors. Also of the total produce more than 50% is procured by cooperatives and other private dairies. While for cooperatives of the total milk procured 60% is consumed in fluid form and rest is used for manufacturing processed value added Page 5 of 81

dairy products; for private dairies only 45% is marketed in fluid form and rest is processed into value added dairy products like ghee, makhan etc. Still, several consumers in urban areas prefer to buy loose milk from vendors due to the strong perception that loose milk is fresh. Also, the current level of processing and packaging capacity limits availability of packaged milk. The preferred dairy animal in India is buffalo unlike the majority of the world market, which is dominated by cow milk. As high as 98% of milk is produced in rural India, which caters to 72% of the total population, whereas the urban sector with 28% population consumes 56% of total milk produced. Even in urban India, as high as 83% of the consumed milk comes from the unorganized traditional sector. Presently only 12% of the milk market is represented by packaged and branded pasteurized milk, valued at about Rs. 8,000 crores. Quality of milk sold by unorganized sector however is inconsistent and so is the price across the season in local areas. Also these vendors add water and caustic soda, which makes the milk unhygienic. Market Size And Growth Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at Rs470bn. The market is currently growing at round Page 6 of 81 the

4% pa in volume terms. The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production. Milk production grew by a mere 1% pa between 1947 and 1970. Since the early 70's, under Operation Flood, production growth increased significantly averaging over 5% pa. About 75% of milk is consumed at the household level which is not a part of commercial dairy industry. Loose milk has a larger market in India as it is perceived to be fresh by most consumers. In reality however, it poses a higher risk of adulteration and contamination. The production of milk products, i.e. milk products including infant milk food, malted food, condensed milk & cheese stood at 3.07 lakh MT in 1999. Production of milk powder including infant milk-food has risen to 2.25 lakh MT in 1999, whereas that of malted food is at 65000 MT. Cheese and condensed milk production stands at 5000 and 11000 MT respectively in the same year.

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(Source: Annual Report1999-2000, DFPI) Major Players The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative Milk Marketing Federation (GCMMF) is the largest player. All other local dairy cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other private players include J K Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a leading player in the sector has turned bankrupt and is facing liquidation. Packaging Technology Milk was initially sold door-to-door by the local milkman. When the dairy co-operatives initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the years, several developments in packaging media have taken place. In the early 80's, plastic pouches replaced the bottles. Plastic pouches made transportation and storage very convenient, besides reducing costs. Milk packed in plastic pouches/bottles have a shelf life of just 1-2 days , that too only if refrigerated. In 1996, Tetra Packs were introduced in India. Tetra Packs are aseptic laminate packs made of aluminum, paper, board and plastic. Milk stored in tetra packs and treated under Ultra High

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Temperature (UHT) technique can be stored for four months without refrigeration. Most of the dairy co-operatives in Andhra Pradesh, Tamil Nadu, Punjab and Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs5-7 compared to plastic pouches. In 199900 Nestle launched its UHT milk. Amul too relaunched its Amul Taaza brand of UHT milk. The UHT milk market is expected to grow at a rate of more than 10-12% in coming years. Regulatory Framework The dairy industry was de-licensed in 1991 with a view to encourage private investment and flow of capital and new technology in the segment. Although de-licensing attracted a large number of players, concerns on issues like excess capacity, sale of contaminated/ substandard quality of milk etc induced the Government to promulgate the MMPO (Milk and Milk Products Order) in 1992. Milk and Milk Products Order (MMPO) regulates milk and milk products production in the country. The order requires no permission for units handling less than 10,000 liters of liquid milk per day or milk solids upto 500 tpa. MMPO prescribes State registration to plants producing between 10,000 to 75,000 liters of milk per day or manufacturing milk products containing between 500 to 3,750 tonnes of milk solids per year. Plants producing over 75,000 liters per day or more than 3,750 tonnes per year of milk solids have to be registered with the Central Government. Page 9 of 81

The

stringent

regulations,

government

controls

and

licensing

requirements for new capacities have restricted large Indian and MNC players from making significant investments in this product category. Most of the private sector players have restricted themselves to manufacture of value added milk products like baby food, dairy whiteners, condensed milk etc. All the milk products except malted foods are covered in the category of industries for which foreign equity participation upto 51% is automatically allowed. Ice cream, which was earlier reserved for manufacturing in the small-scale sector, has now been de-reserved. As such, no license is required for setting up of large-scale production facilities for manufacture of ice cream. Subsequent to de-canalization, exports of some milk based products are freely allowed provided these units comply with the compulsory inspection requirements of concerned agencies like: National Dairy Development Board, Export Inspection Council etc. Bureau of Indian standards has prescribed the necessary standards for almost all milkbased products, which are to be adhered to by the industry. Proposal to Amend the MMPO A proposal to raise the exemption limit for compulsory registration of dairy plants, from the present 10,000 liters a day to 20,000 liters, is

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being considered by the Animal Husbandry Department. The 75,000litre limit is likely to be raised either to 100,000 liters or 125,000 liters in the amended order. The new order would also do away with the provision for re-registration.

Penetration of milk products Western table spreads such as butter, margarine and jams are not very popular in India. All India penetration of butter/ margarine is only 4%. This is also largely represented by urban areas, where penetration is higher at 9%. In rural areas, butter/ margarine have penetrated in 2.1% of households only. The use of these products in the large metros is higher, with penetration at 15%. Penetration of cheese is almost nil in rural areas and negligible in the urban areas. Per capita consumption even among the cheeseconsuming households is a poor 2.4kg pa as compared to over 20kg in USA. The lower penetration is due to peculiar food habits, relatively expensive products and also non-availability in many parts of the country. Butter, margarine and cheese products are mainly

manufactured by organized sector.

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Similarly, penetration of ghee is highest in medium sized towns at 37.2% compared to 31.7% in all urban areas and 21.3% in all rural areas. The all India penetration of ghee is 24.1%. In relative terms, penetration of ghee is significantly higher in North and West, which are milk surplus regions. North accounts for 57% of ghee consumption and West for 23%, South & East together account for the balance 20%. A large part of ghee is made at home and by small/ cottage industry from milk. The relative share of branded products in this category is very low at around 1-2%. Milk powder and condensed milk have not been able to garner any significant consumer acceptance in India as indicated by a very low 4.7% penetration. The penetration is higher at 8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively higher in medium sized towns at 8.5% compared to 7.7% in a large metros. Export Potential India has the potential to become one of the leading players in milk and milk product exports. Locational 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.

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Low Cost of Production : Milk production is scale insensitive and labour intensive. Due to low labour cost, cost of production of milk is significantly lower in India. Concerns in export competitiveness are: Quality: Significant investment has to be made in milk procurement, equipments, chilling and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to international standards.

Productivity: To have an exportable surplus in the long-term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast market for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all over the world

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Indian (traditional) Milk Products There are a large variety of traditional Indian milk products such as Makkhan - unsalted butter. Ghee - butter oil prepared by heat clarification, for longer shelf life.Kheer - a sweet mix of boiled milk, sugar and rice.Basundi milk and sugar boiled down till it

thickens.Rabri - sweetened cream.Dahi - a type of curd.Lassi - curd mixed with water and sugar/ salt.Channa/Paneer - milk mixed with lactic acid to coagulate.Khoa - evaporated milk, used as a base to produce sweet meats.The market for indigenous based milk food products is difficult to estimate as most of these products are manufactured at home or in small cottage industries catering to local areas. Consumers while purchasing dairy products look for freshness, quality, taste and texture, variety and convenience. Products like Dahi and Page 14 of 81

sweets like Kheer, Basundi, and Rabri are perishable products with a shelf life of less than a day. These products are therefore

manufactured and sold by local milk and sweet shops. There are several such small shops within the vicinity of residential areas. Consumer loyalty is built by consistent quality, taste and freshness. There are several sweetmeat shops, which have built a strong brand franchise, and have several branches located in various parts of a city.

Branding Of Traditional Milk Products Among the traditional milk products, ghee is the only product, which is currently marketed, in branded form. main ghee brands are Sagar, MilkMan (Britannia), Amul (GCMMF), Aarey (Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation), Verka ( Punjab Dairy Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt). With increasing urbanization and changing consumer preferences, there is possibility of large scale manufacture of indigenous milk products also. The equipments in milk manufacturing have versatility and can be adapted for several products. For instance, equipments used to manufacture yogurt also can be adapted for large scale

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production of Indian curd products (dahi and lassi). Significant research work has been done on dairy equipments under the aegis of NDDB. Mafco Limited sells Lassi under the Aarey brand and flavoured milk under the Energee franchise (in the Western region, mainly in Mumbai). Britannia has launched flavored milk in various flavors in tetra packs. GCMMF has also made a beginning in branding of other traditional milk products with the launch of packaged Paneer under the Amul brand. It has also created a new umbrella brand "Amul Mithaee", for a range of ethnic Indian sweets that are proposed to be launched The first new product Amul Mithaee Gulabjamun has already been launched in major Indian markets.

Western Milk Products Western milk products such as butter, cheese, and yogurt have gained popularity in the Indian market only during the last few years. However consumption has been expanding with increasing urbanization. Butter Most Indians prefer to use home made white butter (Makkhan) for reasons of taste and affordability. Most of the branded butter is sold in

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the towns and cities. The major brands are Amul, Vijaya, Sagar, Nandini and Aarey. Amul is the leading national brand while the other players have greater shares in their local markets. The latest entrant in the butter market has been Britannia. Britannia has the advantages of a wide distribution reach and a strong brand recall. Priced at par with the Amul brand, it is expected to give stiff competition to the existing players. In 1999-00 the butter production is estimated at 4 lakh MT of this only 45K MT is in the white form used for table purposes rest all is in the yellow form.

Cheese The present market for cheese in India is estimated at about 9,000 tonnes and is growing at the rate of about 15% per annum. Cheese is mainly consumed in the urban areas. The four metro cities alone account for more than 50% of consumption. Mumbai is the largest market (accounting for 30% of cheese sold in the country), followed by Delhi (20%). Calcutta (7%) and Chennai (6%). Mumbai has a larger number of domestic consumers, compared to Delhi where the bulk institutional segment (mainly hotels) is larger. Demand for various types of cheese in the Indian market Page 17 of 81

Type of cheese Processed Cheese spread Mozzarella Flavoured/Spiced Others

% of total consumption 50 30 10 5 5

The major players are Amul, Britannia, and Dabon International dominating the market. Other major brands were Vijaya, Verka and Nandini (all brands of various regional dairy cooperatives) and Vadilal. The heavy advertising and promotions being undertaken by these new entrants is expected to lead to strong 20% growth in the segment. Amul has also become more aggressive with launch of new variants such as Mozzarella cheese (used in Pizza), cheese powder, etc. The entry of new players and increased marketing activity is expected to expand the market. All the major players are expanding their capacities

Capacity expansion in Cheese Company Brands State Capacity Page 18 of 81

Dynamix Group GCMMF

Manufactures Britannia Amul

forMaharashtra

35 tons per day

Gujarat

20 tons per day

APDDCF

Vijaya

Andhra Pradesh

10 tons per day

Milk Powder Milk powder is mainly of 2 types _ Whole milk powder _ Skimmed milk powder Whole milk powder contains fat, as distinguished from skimmed milk powder, which is produced by removing fat from milk solids. Skimmed milk powder is preferred by diet conscious consumers. Dairy whiteners contain more fat than skimmed milk powder but less compared to whole milk powder. Dairy whiteners are popular milk substitute for making tea, coffee etc. The penetration of these products in milk abundant regions is driven by convenience and non perishable nature (longer shelf life) of the product.

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Dairy sector of advanced nations export milk products with a subsidy of $ 1000 per tonne with a level of subsidy more than 60 % of the price of milk powder produced in India, this has led to large scale imports of milk powder both in whole and skimmed form. To protect the domestic sector from these subsidized imports the central government has recently increased the basic import duty on all imports of milk powder more than 10000 MT to 60% from 15%. For imports less than 10000 MT the basic customs duty has been left unchanged at 15%. In 1999-00 India is estimated to have imported about 18,000 tonnes of milk powder against a total estimated production of 2.40 Lakh MTs. In 2000-01 India is expected to export 10000 MT of skimmed milk powder due to rise in international prices to $2300 per MT from last year's levels of $1400 per MT. These expectations are based on the strong demand from Russia, East Asia and Latin America, and also on tightening of supply in EU, which accounts for 75% of the annual global Skimmed Milk Powder exports. Major Players Milk Powder/Dairy Whiteners: Major skimmed milk brands are Sagar (GCMMF) and Nandini (Karnataka Milk Federation), Amul Full Cream milk powder is a whole milk powder brand.

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Leading brands in the dairy whitener segment are Nestle's Everyday, GCMMF's Amulya, Dalmia Industry's Sapan, Kwality Dairy India's KreamKountry, Wockhardt's Farm Fresh and Britannia's MilkMan Dairy Whitener. Condensed Milk The condensed milk market has grown from 9000 MT in 1998 to 11000 MT in 1999. Condensed milk is a popular ingredient used in homemade sweets and cakes. Nestle's Milkmaid is the leading brand with more than 55% market share. The only other competitor is GCMMF's Amul. Infant Foods Nestle is the market leader in the segment. This is a category where brand loyalties are very strong as mothers want the best for their babies. Heinz is the only other significant competitor to Nestle in this segment. Nestle's Cerelac and Nestum together have around 80% market share and Heinz's Farex has close to 18% share. Wockhardt is a relatively new entrant with its First Food brand. Wockhardt also proposes to launch a new baby food Easum containing moong (moong is one of the easily digestible pulses). The Easum brand will directly compete with Nestle's Nestum (made from rice).

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In infant formula also Nestle's Lactogen formula and Lactogen standard formula are the leading brands with around 75% market share. Other brands are Heinz's Lactodex Farex, Wockhardt's Raptakos, and Amul's Amulspray

Major dairy products manufacturers Some of the major dairy products manufacturers in the country: Company Nestle Limited Brands India Milkmaid, Cerelac, Lactogen, Milo, Everyday Milkfood Limited Milkfood Major Products Sweetened condensed milk, malted foods, milk powder and Dairy whitener Ghee, ice cream, and other milk products SmithKline Beecham Limited Horlicks, Maltova, Viva Malted Milkfood, ghee, butter, powdered milk, milk fluid and other milk based baby foods. Indodan Industries Limited Indana Condensed milk, skimmed milk powder, whole milk powder, dairy milk whitener, chilled and

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processed milk Gujarat operative Marketing Federation Limited H.J. Heinz Limited Farex, Complan, Glactose, Bonniemix, Vitamilk Britannia Milkman Flavoured milk, cheese, Milk Powder, Ghee Cadbury Bournvita Malted food Infant Milkfood, malted Milkfood Comilk Amul Butter, cheese and other milk products

Manufacturing Process Milk is pasteurized by treating it to high temperature for a short time. The main aim in treating milk with high temperature is to destroy the disease causing pathogens and to improve keeping quality. Separation machine is typically a high powered centrifuge. The centrifugal force makes milk fat globules and emerges as cream from

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the separator bowl. Separation of cream produces skim milk from which several dairy products are made. Baby food: Fresh milk, which is received from farmers/ traders, is chilled and stored. Then MSK skimmed/ wet skimmed milk and sugar are added in turbo mixture to achieve the desired specifications of ingredients in the milk. This is followed by addition of vitamins and minerals. This milk which contains ingredients to specifications is filtered, cooled, analyzed and then purified. Then it passes through specific pasteurization and is taken to evaporator for pre-condensing. Pre-condensate is homogenized, cooled and stored. Cooled precondensate is heated and dried in spray drier (Egron). Then sugar is added. The powder is then passed through chemical analysis to check quality and is filled in tins through filling machines. These tins are gassed during gas mix and then sealed, packed and dispatched in cardboard cartons. Butter: Whole milk is first separated into skim milk and cream by centrifugal force in a separator. The cream is then pasteurized either through batch process or a continuous process. In batch process, cream is heated to a minimum of 740 C and held at the temperature for 30 minutes, while in continuous process it is heated at 850 C and is held for only 15 seconds. The heat treatment destroys bacteria, inactivates enzymes and gives the cream a cooked flavour. After Page 24 of 81

pasteurization, a tempering process is applied in which cream is held at 100 C to allow rearrangement of the fat crystals. The cream is then churned to produce butter. Continuous churning converts cream into butter in a few minutes while batch churning takes a longer time. Composition and colour adjustment is also done at the churning stage and a salt solution is added to give the finished butter a salty taste. About 13 liters of milk with 6% fat is required to produce 1 kg of butter. Cheese: There are thousands of varieties of cheese in the world. The type of manufacturing process used in the production of cheese determines its flavour, which ranges from extremely mild to very sharp, and its texture, which can be semi-solid to almost stone hard. Cheese making requires four main ingredients - good quality milk, rennet or coagulating acids, culture and salt. Cheese is generally made from cow's milk. About 10 liters of milk with 3% fat is required for making 1 kg of cheese. Natural Cheese is made by coagulating or curdling milk, stirring & heating the curd, draining off the whey and collecting or pressing the curd. The desired flavour and texture is obtained by varying the temperature, humidity and time period of the curing process. Sweetened condensed milk is usually made from fresh milk by adding sugar to the milk pre-warming and concentrating the mixture in the

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high vacuum. The syrupy milk is then cooled so that the lactose crystallizes as very fine crystals and then the product is coagulated. Future Prospects 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 India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan= = s $2.8 dollars. 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 33% per annum to around Rs.43, 500 crores by year 2005. 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. By 2005, the value of Indian

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dairy produce is expected to be Rs 10, 00,000 million. Presently the market is valued at around Rs7, 00,000mn

OBJECTIVE OF THE STUDY

Amul & Parag Dairy is the market leader of dairy based food products in Agra City. Amul is the major competitors in the market against Parag Dairy. It is important to get an idea regarding Amuls & Parag Dairy position in Agra City. It would not help Amul to capitalize on existing potential but also to formulate strategies and to fill the look holes and gaps to fight the competitive situation The Objective also contains :

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To determine the market share of Amul & Parag dairy based product.

To determine the consumer preferences of Amul & Parag dairy product with the help of some parameters -quality, taste, price, packing style.

To compare the dairy product of Amul and Parag dairy on the basis of above parameters

PROFILE OF AMUL
Gujarat Cooperative Milk Marketing Federation
GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide

remunerative returns to the farmers and also serve the interest of

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consumers by providing quality products which are good value for money.

Members:

17 District Cooperative Milk Producers' Union (15 members and 2 Nominal Members)

No. of Producer Members: No. of Village Societies: Total Milk handling capacity: Milk collection (Total 2010-2011) Milk collection (Daily Average) Milk Drying Capacity: Cattlefeed manufacturing Capacity:

3.03 Million 15721 13.67 Million liters per day 3.45 Billion liters 9.2 Million liters 647 Mts. per day 3690 Mts per day

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Sales Turnover
Sales Turnover 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Rs (million) 22185 22588 23365 27457 28941 29225 37736 42778 52554 US $ (in million) 493 500 500 575 616 672 850 1050 1325 Page 30 of 81

2008-09 2009-10 2010-11

671013 80053 97742

1504 1700 2172

LIST OF PRODUCTS MARKETED:

Bread spreads:

Amul Butter Amul Lite Low Fat Bread spread Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Page 31 of 81

Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix Avsar Ladoos

UHT Milk Range:

Amul Shakti 3% fat Milk Amul Cool Amul Taaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Lite Slim-n-Trim Milk 0% fat milk Page 32 of 81

Amul Shakti Toned Milk Amul Fresh Cream Amul Snowcap Softy Mix

Pure Ghee:

Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above) Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener Page 33 of 81

Sweetened Condensed Milk:

Amul Mithaimate Sweetened Condensed Milk

Fresh Milk:

Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat Amul Cow Milk

Curd Products:

Yogi Sweetened Flavoured Dahi (Dessert) Amul Masti Dahi (fresh curd) Amul Masti Spiced Butter Milk Amul Lassee Amul Chazz Page 34 of 81

Amul Icecreams:

Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi) Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza, Roasted Almond)

Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)

Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)

Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta)

Utterly Delicious (Vanilla, Strawberry, Chocolate, Chocochips, Cake Magic)

Chocolate & Confectionery:

Amul Milk Chocolate Amul Fruit & Nut Chocolate

Brown Beverage:

Nutramul Malted Milk Food

Milk Drink:

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Amul

Kool

Flavoured

Milk

(Mango,

Strawberry,

Saffron,

Cardamom, Rose, Chocolate)

Amul Kool Cafe

Health Beverage:

Amul Shakti White Milk Food

For further details, please contact:

Amul Butter Girl

Edited from an article by Mini Varma published in The Asian Age on March 3, 1996 The moppet who put Amul on India's breakfast table 50 years after it was first launched, Amul's sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses. Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old housewife is out in the balcony drying clothes. From her Page 36 of 81

second floor flat she can see her neighbors on the road. There are other people too. The crowd seems to be growing larger by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what all the commotion is about. She expects the worst but can see no signs of an accident. It is her four-year-old who draws her attention to the hoarding that has come up overnight. "It was the first Amul hoarding that was put up in Mumbai," recalls Sheela Mane. "People loved it. I remember it was our favourite topic of discussion for the next one week! Everywhere we went somehow or the other the campaign always seemed to crop up in our conversation." Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you, from strategically placed hoardings at many traffic lights. She is the Amul moppet everyone loves to love (including prickly votaries of the Shiv Sena and BJP). How often have we stopped, looked, chuckled at the Amul hoarding that casts her sometime as the coy, shy Madhuri, a bold sensuous Urmila or simply as herself, dressed in her little polka dotted dress and a red and white bow, holding out her favourite packet of butter. For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So much so that the ads are now ready to enter the Guinness Book of World Records for being the longest running campaign ever. The ultimate compliment to the butter came when a Page 37 of 81

British company launched butter and called it Utterly Butterly, last year. It all began in 1966 when Sylvester daCunha, then the managing director of the advertising agency, ASP, clinched the account for Amul butter. The butter, which had been launched in 1945, had a staid, boring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine, corporate ads.

One of the first Amul hoardings

In India, food was something one couldn't afford to fool around with. It had been taken too seriously, for too long. Sylvester daCunha decided it was time for a change of image. The year Sylvester daCunha took over the account, the country saw the birth of a campaign whose charm has endured fickle public opinion, gimmickry and all else. The Amul girl who lends herself so completely to Amul butter, created as a rival to the Polson butter girl. This one was sexy, village belle, Page 38 of 81

clothed in a tantalising choli all but covering her upper regions. "Eustace Fernandez (the art director) and I decided that we needed a girl who would worm her way into a housewife's heart. And who better than a little girl?" says Sylvester daCunha. And so it came about that the famous Amul Moppet was born. That October, lamp kiosks and the bus sites of the city were splashed with the moppet on a horse. The baseline simply said, Thoroughbread, Utterly Butterly Delicious Amul,. It was a matter of just a few hours before the daCunha office was ringing with calls. Not just adults, even children were calling up to say how much they had liked the ads. "The response was phenomenal," recalls Sylvester daCunha. "We knew our campaign was going to be successful."

For the first one year the ads made statements of some kind or the other but they had not yet acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid concept would give them extra mileage, more dum, so to say. It was a decision that would stand the daCunhas in good stead in the years to come. Page 39 of 81

In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative team working on the Amul account came up with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay reacted to the ad with a fervour that was almost as devout as the Iskon fever. That was the first of the many topical ads that were in the offing. From then on Amul began playing the role of a social observer. Over the years the campaign acquired that all important Amul touch. India looked forward to Amul's evocative humour. If the Naxalite movement was the happening thing in Calcutta, Amul would be up there on the hoardings saying, "Bread without Amul Butter, cholbe na cholbe na (won't do, won't do). If there was an Indian Airlines strike Amul would be there again saying, Indian Airlines Won't Fly Without Amul. There are stories about the butter that people like to relate over cups of tea. "For over 10 years I have been collecting Amul ads. I especially like the ads on the backs of the butter packets, "says Mrs. Sumona Varma. What does she do with these ads? "I have made an album of them to amuse my grandchildren," she laughs. "They are almost part of our culture, aren't they? My grandchildren are already beginning to realise that these ads are not just a source of amusement. They make them aware of what is happening around them." Page 40 of 81

Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy not to play it safe. There are numerous ads that are risque in tone. "We had the option of being sweet and playing it safe, or making an impact. A fine balance had to be struck. We have a campaign that is strong enough to make a statement. I didn't want the hoardings to be pleasant or tame. They have to say something," says Rahul daCunha. "We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The Indian Airlines one really angered the authorities. They said if they didn't take down the ads they would stop supplying Amul butter on the plane. So ultimately we discontinued the ad," he says laughing. Then there was the time when the Amul girl was shown wearing the Gandhi cap. The high command came down heavy on that one. The Gandhi cap was a symbol of independence; they couldn't have anyone not taking that seriously. So despite their reluctance the hoardings were wiped clean. "Then there was an ad during the Ganpati festival which said, Ganpati Bappa More Ghya (Ganpati Bappa take more). The Shiv Sena people said that if we didn't do something about removing the ad they would come and destroy our office. It is surprising how vigilant the political forces are in this country. Even when the Enron ads (Enr On Or Off) were running, Rebecca Mark wrote to us saying how much she liked them." Page 41 of 81

Amul's point of view on the MR coffee controversy

There were other instances too. Heroine Addiction, Amul's little joke on Hussain had the artist ringing the daCunhas up to request them for a blow up of the ad. "He said that he had seen the hoarding while passing through a small district in UP. He said he had asked his assistant to take a photograph of himself with the ad because he had found it so funny," says Rahul daCunha in amused tones. Indians do have a sense of humour, afterall. From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue to tease a laughter out of them. Where does Amul's magic actually lie? Many believe that the charm lies in the catchy lines. That we laugh because the humour is what anybody would enjoy. They don't pander to your nationality or certain sentiments. It is pure and simple, everyday fun.

Our Product

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AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 42.78 billion in 2006-07). Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organisation. And of a proven model for dairy development.

Bread Spreads Amul Butter Utterly Butterly Delicious Amul Lite Low fat, low Cholesterol Bread Spread Delicious Table Margarine The Delicious way

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to eat healthy Milk Drinks Amul Kool Amul Kool Cafe

Kool Koko A delight to Chocolate Lovers. Delicious Chocolate taste

Nutramul Energy Drink A drink for Kids provides energy to suit the needs of growing Kids

Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk

Amul Kool Flavoured Tetra Pack

Amul Masti Spiced Buttermilk Amul introduces the Best Thirst Quenching Drink

Amul Kool Thandai

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Powder Milk Amul Spray Infant Milk Food Still, Mother's Milk is Best for your baby Sagar Skimmed Milk Powder Which is especially useful for diet preparations or for use by people on low calorie and high protein diet. Amulya Dairy Whitener The Richest, Purest Dairy Whitener Fresh Milk Amul Instant Full Cream Milk Powder A dairy in your home Sagar Tea Coffee Whitener

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Amul Fresh Milk This is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience. Amul Taaza Double Toned Milk

Amul Gold Milk

Amul Lite Slim and Trim Milk

Amul Fresh Cream

Amul Shakti Toned Milk

Amul Calci+

Cheese

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Amul Pasteurised Processed Cheese 100% Vegetarian Cheese made from microbial rennet

Amul Cheese Spreads Tasty Cheese Spreads in 3 great flavours..

Amul Emmental Cheese The Great Swiss Cheese from Amul, has a sweet-dry flavour and hazelnut aroma Gouda Cheese

Amul Pizza Mozzarella Cheese Pizza cheese...makes great tasting pizzas!

For Cooking Amul / Sagar Pure Ghee Made from fresh cream. Has typical Cooking Butter

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rich aroma and granular texture. An ethnic product made by dairies with decades of experience. Amul Malai Paneer Ready to cook paneer to make your favourite recipes! Mithai Mate Sweetened Condensed Milk - Free flowing and smooth texture. White to creamy color with a pleasant taste. Masti Dahi Utterly Delicious Pizza

Desserts Amul Ice Creams Premium Ice Cream made in various Amul Shrikhand A delicious treat, anytime.

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varieties and flavours with dry fruits and nuts. Amul Mithaee Gulab Jamuns Pure Khoya Gulab Jamums...best served piping hot. Amul Lassee Amul Basundi Amul Chocolates The perfect gift for someone you love.

Health Drink Nutramul Malted Milk Food made from malt extract has the highest protein content among all the brown beverage powders sold in India. Page 49 of 81 Amul Shakti Health Food Drink Available in KesarAlmond and Chocolate flavours.

PROFILE OF PARAG DAIRY

Parag Dairy Delhi was set up in 1974 under the Operation Flood Programme. It is now a wholly owned company of the National Dairy Development Board (NDDB). Parag Dairy markets & sells dairy products under the Parag Dairy brand (like Liquid Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices at a national level through its sales and distribution networks for marketing food items. Parag Dairy sources significant part of its requirement of liquid milk from dairy cooperatives. Similarly, Parag Dairy sources fruits and vegetables from farmers / growers associations. Parag Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market all Dhara products. It is Parag Dairys constant endeavor to (a) Ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers at competitive prices and;

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(b) Uphold institutional structures that empower milk producers and farmers through processes that are equitable. At Parag Dairy, processing of milk is controlled by process automation whereby state-of-the-art microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/ reliability and safety. Parag Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization. Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for Testing and Calibration Laboratory (NABL)-Department of Science and Technology,

Government of India. Parag Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad. Parag Dairy Milk has a market share of 66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Parag Dairy. The companys derives significant competitive advantage from its unique distribution network of bulk vending booths, retail outlets and mobile units. Parag Dairy ice creams launched in the year 1995 have shown continuous growth over the years and today boasts of approximately 62% market share in Delhi and NCR. Parag Dairy also Page 51 of 81

manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk, Lassi & Flavored Milk and most of these products are available across the country. The company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. Fresh produce from the producers is handled at the Companys modern distribution facility in Delhi with an annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in Delhi. A stateof-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies quality products in the international market. With increasing demand another state-of-the-art fruit processing plant has been set up at Bangalore with fruit handling capacity of around 250 MT per day. Parag Dairy has also been marketing the Dhara range of edible oils for the last few years. Today it is a leading brand of edible oils and is available across the country in over 2, 00,000 outlets. The brand is currently available in the following variants: Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil. Parag Dairy has also launched extra virgin Olive Oil under the Daroliva brand. Page 52 of 81

Parag Dairy has over the last 3 decades, harnessed the power of farmer cooperatives to deliver a range of delicious products and bring a smile on your face. In times to come, Parag Dairy shall strive to remain one of Indias finest food companies.

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LIST OF PRODUCTS MARKETED:

Breadspreads:

Parag Butter

Cheese Range:

Parag Processed Cheese Parag Pizza Cheese Parag Paneer

UHT Milk Range:

Parag Milk Parag Fresh Cream

Pure Ghee:

Parag Pure Ghee

Infant Milk Range:

Parag spray Milk Food

Milk Powders:

Paragya Dairy Whitener Sagar Skimmed Milk Powder Page 54 of 81

Fresh Milk:

Parag Taaza Toned Milk Parag Cow Milk

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RESEARCH METHODOLOGY
Methodology for a study like this is the most important part .The method of study operate by me is totally is to increase $ to gather the more information regarding this project. The major emphasis in such studies is on the discovery of the ideas fruitful relevant information. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspect of a problem under study. I collected the information regarding this project through I. II. PRIMARY DATA SECONDARY DATA

Primary data is collected by the customers and Parag retailers. Secondary data is collected by retailer & personal interview. Since our research is descriptive type, so research design is also descriptive. Sample design: Sampling is a process of obtaining information about an entire population by examining only a part of it.

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As depicted below, I have taken 3 sample sizes regarding my project. I took information from 7 areas with the help of 14 retailers & 70 customers.

I have chosen this sample size as per my capacity. Sample size: AREA: RETAILER : CUSTMER: 7 14 70

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MARKET SHARE OF AMUL SPRAY IN % AGE (Agra) TERRITORIES AMUL SPRAY PARAG DAIRY LECTOGIN Avas Vikas Agra Kamla Nagar Dhuliaganj New Agra Sadar Delhi Gate ShahGanj 3.70 2.80 0.20 2.40 1.40 1.00 1.40 3.61 10.31 4.00 5.12 4.50 1.40 2.81

SALES OF BUTTER BY TERRITORY (KG) (Agra)

TERRITORIES

AMUL BUTTER

PARAG DAIRY BUTTER

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Avas Vikas Agra Kamla Nagar Dhuliaganj New Agra Sadar Delhi Gate ShahGanj

500 92 734 355 190.5 678 159

0 30 72 0 0 0 42

MARKET SHARE OF AMUL BUTTER IN %AGE AGRA TERRITORIES AMUL BUTTER PARAG BUTTER Avas Vikas Agra Kamla Nagar Dhuliaganj New Agra Sadar 3.83 17.76 2.21 8.49 4.56 0 .72 1.80 0 0 Page 59 of 81 DAIRY

Delhi Gate Shah Ganj TOTAL

16.32 3.12 95.70

0 0 2.52

SALES OF DAIRY WHITE BY TERRITORY (KG)

TERRITORIES Avas Vikas Agra Kamla Nagar Dhuliaganj New Agra Sadar Delhi Gate Shah Ganj TOTAL

AMULYA 27 6 51 46 22 24 15 626

Parag Dairy 0 5 2 8 0 2 3 61

OTHERS 9 6 25 28 16 17 18 127

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MARKET SHARE OF DAIRY WHITE IN % AGE (Agra)

TERRITORIES

AMULYA

Parag Dairy

OTHERS

Avas Vikas Agra Kamla Nagar Dhuliaganj New Agra Sadar Delhi Gate Shah Ganj TOTAL

2.02 0.45 3.72 3.34 1.72 1.78 .44 46.17

0 0.37 0.15 0.58 0 0.37 .05 4.50

0.76 0.45 1.96 2.18 1.19 1.27 3.20 11.77

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Page 62 of 81

Consumer Perception towards Amul & Parag Dairy Products Export Potential India has the potential to become one of the leading players in milk and milk product exports. Locational 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. Low Cost of Production : Milk production is scale insensitive and labour intensive. Due to low labour cost, cost of production of milk is significantly lower in India.Concerns in export competitiveness. Quality: Significant investment has to be made in milk procurement, equipments, chilling and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to international standards. Productivity: To have an exportable surplus in the long-term and also to maintain cost competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast market for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas and other ethnic sweets to the large number of Indians scattered all over the world Page 63 of 81

DATA ANALYSIS AND INTERPRETATION

I.

Which company's dairy product you use

Parag, 15% Other, 30%

Amul, 55%

Interpretation: 55per cent consumers use Amul & 30 per cent used others and last 15 percent consumer used Parag dairy products.

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II.

Which of the product mostly you go for?

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Ghee 32%

48%

50% 47% 40% 36%

38%

28% 25% 20% 12% 22%

Amul Parag Others

Milk

Butter

Cheese

Interpretation : Amul Ghee used consumer 32%, Parag Ghee used 20% and others 48% . Milk used by consumer 28% Amul, 25% Parag and others 47%. Butter used by consumer 38% Amul, 12% Parag and 40% others.

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III.

Are you satisfied with your product?

No, 20%

Yes, 80%

Interpretation: 80% Consumer satisfied with their products and 20 % consumer not satisfied their products.

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IV.

Why are you inclined to your product?

80% 70% 60% 50% 40% 30% 20% 10% 0% Quality Brand Price 40% 32% 30% 60% 68% 70%

80%

Amul Parag 20%

Taste

Interpretation: Amul Quality inclined to products by consumer 60%, Parag satisfied 40%. Brand preferred by consumer eg. 68% Amul and 32% Parag. Price satisfaction with consumer 70% Amul and 30% Parag.

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V.

Do you like any change in product

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Taste Price Packing Style 20% 30% 25% 25% 55% 80% 75% 75% 70% 60%

85%

60% Amul Yes

45% 40% 40%

Amul No Parag Yes Parag No

15%

Quality

Interpretation : All consumer satisfied with their product and some consumer change product Taste by consumer Amul 80% and no20% and Parag with satisfied 45% and not satisfied 45%. Price by consumer Amul 30% and no70% and Parag with satisfied 40% and not satisfied 60%. packing by consumer Amul 25% and no75% and Parag with satisfied 75% and not satisfied 25%. Quality wise Amul 15% and no 85% and Parag with satisfied 60% and not satisfied 40%.

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RETAILER Analysis I. In dairy products, which company product demand is higher?

Other, 30%

Parag, 20%

Amul, 50%

Interpretation: 50per cent consumers demand for Amul dairy products & 30 per cent consumer preferred others branded products and last 20 percent consumer prefered Parag dairy products.

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II.

Reason

20% Packing style 80% 30% Brand 70% Parag 32% Taste 68% 40% Price 60% 10% 20% 30% 40% 50% 60% 70% 80% Amul

0%

Interpretation: Amul dairy products Packing Style wise by consumer 80%, Parag preferred 20%. Brand preferred by consumer eg. 70% Amul and 30% Parag. Taste preferred by consumer 68% Amul and 32% Parag. Price wise by consumer 60% Amul and 40% Parag.

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III.

Which product of Amul is preferred by customers?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Ghee Milk Butter Cheese 32% 28% 38% 36% 20% 25% 12% 22% Others Parag Amul 48% 47% 50% 40%

Interpretation: All consumers Preferred with their product and some consumer change product Taste by consumer Amul 80% and no20% and Parag with Preferred 45% and not Preferred 45%. Price by consumer Amul 30% and no70% and Parag with Preferred 40% and not Preferred 60%. Packing by consumer Amul 25% and no75% and Parag with Preferred 75% and not Preferred 25%. Quality wise Amul 15% and no 85% and Parag with Preferred 60% and not Preferred 40%.

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FINDINGS 1. "The company caters to the Indian palate, which is its primary driver of success". In light of this statement, critically examine the marketing strategies adopted by Amul & Parag Dairy to capture a sizeable market share of the organized Dairy based food Product in India. 2. In the modern competitive scenario, promotion is a key element in the marketing mix of a company. Critically analyze the promotion strategies adopted by Amul India Pvt. Ltd. What other efforts must the company take to effectively promote its products? 3. Dairy based Products contribute a major share of the revenues of Amul. Given the competitive scenario in the Dairy Products in India, where competitors such as Parag Dairy are introducing several innovative products, what measures must Amul take to remain competitive? Explain in detail.

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SUGGESTION AND RECOMMENDATIONS 1. Company should have feed back from market and consumer about the Dairy based Products. 2. The more Flavour of Amul & Parag Dairy Products should become in the Market. 3. The company provided some small schemes for retailer also. 4. 5. The company gives some gifts for customer also. The company should associate itself with some games or tournaments like football, cricket and so on. 6. Company should provide sponsored seminar market intelligence- Company should maintain the healthy relationship with market distribution channel i.e. whole seller, distributor, retailers which will boost the brand image. 7. Company should check the market real position help the trainees and other survey organizations. 8. Company should launch its website and use new advertising channels; i.e. Trailer in cinema halls

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 Hoardings Spencer any education scholarship or games. CONCLUSION I have studied and analyzed the Dairy based food Product Market of Amul & Parag Dairy Products at Agra on different aspects of the markets, outlets, distribution & consumers. The survey was conducted in various areas of Agra city with great enthusiasm. This project report Concludes that Amul & Parag Dairy are easily available in various parts of Agra. The Parag distribution channel of the Amul is much strong the most important thing, which I feel to improve is the availability to retailers & consumers. The retailers & consumers both promotes either Amul or Parag Dairy of its brands for could be with regard to order processing, warehousing, inventory management & transportation; besides that shop covering, exit from the market by the salesmen glow shine board, schemes, incentives, prizes, gifts, discount, returning of

defective goods, proper supply should be improved. My job was to make marketing managers aware of all the problems so that a proper course of action is required to be undertaken.

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BIBLIOGRAPHY
Market Research Research Methodology Product Management - Luck and Rubin - C.R. Kothari - Ramanuj Majumdar

Marketing Management www.google.com www.amul.com www.Paragdairy.com

- R.L. Vashney & S.L. Gupta

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QUESTIONNAIRE
CUSTOMER: NAME: I. ADDRESS: INCOME: Which company's dairy product you use a) Parag II. b) Amul c) others

Which of the product mostly you go for? a) Ghee b) milk c) butter d) cheese

III.

Are you satisfied with your product? a) Yes b) No

REASON: IV. Why are you inclined to your product? a) Quality V. b) brand c) price d) taste

Do you like any change in product Page 77 of 81

a) Yes

b) no

IN WHICH PARAMETER: a) Taste b) price c) packing style d) quality

RETAILER: NAME:

ADDRESS: INCOME:

I. higher? a) Amul II. a) Price III.

In dairy products, which company product demand is

b) Parag dairy

c) others

Reason b) taste c) brand d) packing style

Which product of Amul is preferred by customers? a) Ghee e) Any other b) milk c) cheese d) butter

REASON:.. a) Price b) taste c) quality d) packing style

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IV.

Which product of Parag dairy is preferred least by customers? a) Ghee e) Any other b) milk c) cheese d) butter

V.

Which product of Amul is preferred least by customers? a) Ghee e) Any other b) milk c) cheese d) butter

VI.

Which

of

Parag

dairy

is

preferred

least

by

customer? a) Ghee e) Any other VII. Rank the preferences of consumers for amul & Parag dairy. b) milk c) cheese d) butter

Amul Ghee Cheese Dahi Butter Milk

Parag dairy

Others

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Others

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COMPARATIVE STUDY OF AMUL AND PARAG DAIRY PRODUCTS Consumer Preferences Ghe e 1. Price 2. Quality Low Goo d 3. Taste Goo d 4. Packing Style Best Low Goo d Goo d Best Best Best Good Good Bette r Bette r Bette r Bette r Better Better Better Better Parag Dairy Milk Butte r Low Good Chees e Low Good High High High High Ghee Amul Milk Butte r High High Chees e High High