RESEARCH AND ANALYSIS OF

Mr. Hashu Jawale

CONSUMER BUYING MET-IOM, MMS, Roll No- 71

PATTERN AT PARAG MILK

FOODS
A project report on summer internship at Parag Milk
Foods Ltd
 ACKNOWLEDGEMENT

I would like to take this opportunity to express my acknowledgement and sense of gratitude to
the entire staff of Pride of Cows Milk who provided me an opportunity to undertake this project,
which enabled me to understand and apply all my classroom methods and techniques in adding
value to the company.

I sincerely thank my reporting Business Development Officer-Mr Samar Mahadik who was a
true source of assistance and also I take this opportunity to thank my team mates who provided
me with valuable inputs for project without which it would not have been possible.

I also thank the director of MET institute of management Dr. Vijay Page and co-ordinator of
MMS
Dr. Sangeeta Tandon for their support. A special thanks to our Placement co-ordinators for
their help and guidance and for providing me the opportunity to embark on this project.

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 INDEX
Sr no Contents Page No.
1 Need and Justification of project 4
2 Introduction
 Introduction to industry 5
 Background 7
 Consumer needs and preferences 10
 Growing volume 13
 Potential for future growth 13
3 Company Background
 Profile 15
 Manufacturing plants 15
 Product portfolio 16
 Parag Milk Foods IPO 18
 Pride of Cows milk 19
 SWOT analysis of brand Pride of Cows milk 23
 Competitors 24
4 Brand awareness 25
5 Data collection and data analysis 26
6 Problem analysis 36
7 Suggestions and recommendation 38
8 Learning’s 39
9 Conclusion 40
10 A peep into the future 41
11 Bibliography 42

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 1. NEED AND JUSTIFICATON OF PROJECT

Proud owners of profitable brands such as Gowardhan and GO, Parag Milk Foods Pvt Ltd at timely
phase have concentrated to focus on building their new, exciting and much potential segment of
fresh cow milk to its brand portfolio. Considering the stage at which the product is climbing
through, a marketing communication program is an apt push marketing strategy, to announce about
its PODs (Point of Difference).

 To reach out to maximum number of customers in the 45 days period and collect required
data
 To understand how customers perceive this brand and acceptance level
 To understand the issues of the existing customers
 To know why the old customers switched to other brands
 To register profitable customers
 To understand the service issues
 To analyse problems at the logistics end
 To provide daily report to business development officer
 To generate new customers by creating awareness (by way of sampling)

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 2. INTRODUCTION

Introduction to the Industry

Dairy industry is of crucial importance to India. The country is the world’s largest milk producer,
accounting for more than 16% of worlds total milk production. It is the world’s largest consumer
of dairy products, consuming almost 100% of its own milk production. Dairy products are a major
source of cheap and nutritious food to millions of people in India and the only acceptable source
of animal protein for large vegetarian segment of Indian population, particularly among the
landless, small and marginal farmers and women. Dairying has been considered as one of the
activities aimed at alleviating the poverty and unemployment especially in the rural areas in the
rain-fed and drought-prone regions. In India, about three-fourth of the population live in rural areas
and about 38% of them are poor. In 1986-87, about 73% of rural households owned livestock.
Small and marginal farmers account for three-quarters of these households owning livestock,
raising 56% of the bovine and 66% of the sheep population. According to the National Sample
Survey of 1993-94, livestock sector produces regular employment to about 9.8 million persons in
principal status and 8.6 million in subsidiary status, which constitute about 5% of the total work
force. The progress in this sector will result in a more balanced development of the rural economy.

Prior to year 2000, India was not noticed by most international dairy companies, as the country
was neither an active importer nor an exporter of dairy products. Although India has imported
some milk powder and butter oils as aid between 1970 and 1990, exports from India were
insignificantly small and it was not until 2000 onwards, when Indian dairy products started having
more presence in global markets.

Milk production in India has developed significantly in the past few decades from a low volume
of 17 million tons in 1951 to 110 million tonnes in 2009. Currently, the Indian dairy market is
growing at an annual rate of 7%. Despite the increase in production, a demand supply gap has
become imminent in the dairy industry due to the changing consumption habits, dynamic
demographic patterns, and the rapid urbanization of rural India. This means that there is an urgent
need for the growth rate of the dairy sector to match the rapidly growing Indian economy.

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Below are some key statistics for India’s dairy industry:

Annual Milk Production (2016-17) 108.5 Million Tonnes

Annual Export Volume (2016-17) 70,790 Tonnes
Share of world dairy production (2017) 15%
Share of world trade in dairy products (2017) 0.3%
Milking herd size 115.5 million
Number of milk producers’ cooperative unions 170
Number of local dairy cooperatives 96,000
Number of state cooperatives 15
Per capita consumption (Drinking milk) 250g/day
Estimated percentage of dairy farmers in organised sector 40.50%
% of dairy produce consumed by unorganised sector 65%
Dairy industry workforce 75 million women/ 15 million men

India’s dairy sector is expected to triple its production in the next 10 years in view of expanding
potential for export to Europe and the West. Moreover with WTO regulations expected to come
into force in coming years all the developed countries which are among big exporters today would
have to withdraw the support and subsidy to their domestic milk products sector. Also India today
is the lowest cost producer of per litre of milk in the world. 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.

Despite having the world’s largest milk production, India is a very minor player in the international
market. Prior to the 1970s, India was primarily an import dependent country and anhydrous milk
fat, butter and dry milk powders were imported to meet the needs of urban consumers. However,
with the implementation of Operation Flood Programme in 1971, the situation changed
significantly and imports of dairy products reduced to very small quantities. In the 1990s imports
and exports kept edging each other out, and from 2001, India has become a net exporter of dairy
products. After 2003, India’s dairy import has dipped while exports have increased at a fast rate,

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yet the country’s share in global dairy trade still remains at minor levels of 0.3 and 0.4 percent for
exports and imports respectively. This is due to the direct consumption of liquid milk by the
producer households as well as the demand for processed dairy products that has increased with
the growth of income levels, which have left little dairy surpluses for export. Nevertheless, India
consistently exports specialty products such as casein for food processing or pharmaceuticals. In
2009, around half of India’s total dairy import by volume consists of butter and other dairy derived
fats, followed by lactose (33 percent), and milk powder (eight percent). Import of milk and milk
products is permitted without any quantitative limitations, although tariff rate quotas apply and
import permits are required. On the other hand, in terms of exports, milk powders and baby food
constituted more than 40 percent of India’s total dairy exports by volume, followed by casein, milk
and cream, butter and other fats, and other processed dairy products in 2009. Almost all of India’s
dairy exports are meant for Asian and African countries. In Asia, neighbouring countries in South
Asia and the Middle East are the main buyers. Around half of India’s exported dairy products are
shipped to Bangladesh, the United States, U.A.E, and Singapore. Despite many efforts, India has
not been able to breach the European markets, while the market in South America remains
untapped. Export figures clearly illustrate that the Indian dairy export is still developing and the
surpluses are neither systemic nor consistent. However, there future outlook for export of Indian
dairy products is rather positive, as indigenous milk products and desserts are becoming popular
with the ethnic population spread all over the world and there is a strong likelihood that the export
demand for these products will grow.

Background

India with 134mn cows and 125mn buffaloes has the largest population of cattle in the world. Total
cattle population in the country as on October'00 stood at 313mn. More than fifty present of the
buffaloes and twenty percent of the cattle in the world are found in India and most of these are
milk cows and milk buffaloes.

Indian dairy sector contributes the large share in agricultural gross domestic products. Presently
there are around 70,000 village dairy cooperatives across the country. The co-operative societies
are federated into 170 district milk producers unions, which is turn has 22-state cooperative dairy

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federation. Milk production gives employment to more than 72mn dairy farmers. In terms of total
production, India is the leading producer of milk in the world followed by USA.

While world milk production declined by 2 per cent in the early 2000’s, according to FAO
estimates, Indian production was increased by 4 per cent. The milk production in India accounts
for more than 16% of the total world output and 57% of total Asia's production. The top five milk
producing nations in the world are India, USA, Russia, Germany and France.

Although milk production has grown at a fast pace during the last three decades (courtesy:
Operation Flood), milk yield per animal is very low. The main reasons for the low yield are

 Lack of use of scientific practices in milking.

 Inadequate availability of fodder in all seasons.
 Unavailability of veterinary health services.

Structure of Indian dairy industry

There are two major channels for milk collection and distribution that exist in India. The organized
channel, predominantly served by cooperatives and large private dairies accounts for 31 per cent
of the dairy market in 2010 whereas the unorganized channel is served by traders who procure
milk from rural areas and sell in urban areas. There are close to 30 dairy organizations that process
more than 10 lakh litres of milk daily. Amul Group (including Gujarat Cooperative Milk Marketing
Federation) had a turnover of INR 191 bn ($3.2 bn) in FY 2013 and holds nearly one-third share
of the organized market.

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 KEY PLAYERS BRAND

National

Gujrat Cooperative Milk Marketing Federation Ltd.

Amul
(GCMMF)

Kwality Dairy India Limited Kwality

Mother Dairy India Limited Mother Dairy

Vadilal Industries Vadilal

Modern Dairies Limited Modern Dairy

Gowardhan, Pride of
Parag Milk Foods
Cows

Nestle India Nestle

Britannia Industries Limited Britannia

Market scenario

The total dairy market in India was estimated to be INR 3,000 bn ($60 bn) in 2011 comprising
nearly 40% of the total Food & Beverages market. Of this the organized dairy segment was 20%
or INR 600 bn. implying a significant opportunity for growth for the next decade or more. The
total dairy market was projected to grow by a CAGR of 10-11% to nearly INR 5,000 bn or ($82
bn) by 2016 (Source: AC Neilson and India Food Guide, Edelweiss, February 2012). Key dairy
products include processed/packaged milk, UHT milk, milk powder, and other dairy-based, value-
added products like butter, cheese, curd, buttermilk, fruit yoghurts, etc. The processed dairy
products market is likely to grow at a rate of 15%. Further, processed dairy products are expected
to contribute 30% to the dairy industry by 2016 in value terms. The organized and branded milk
market, dominated by a large number of cooperative players, is likely to grow to a magnitude of
73% by 2030 according to CII-McKinsey FAIDA report 3, April 2013.

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Government initiative
The Intensive Dairy Development Programme, strengthening infrastructure for quality and clean
milk production, Assistance to Cooperatives, and Dairy Entrepreneurship Development Scheme
are some of the Indian Government’s important schemes/programmes for meeting the growing
demand for milk. MoFPI also provide assistance under NMFP for setting up/up gradation of milk
processing unit and setting up of cold storage for dairy products.

Opportunities in dairy sector

India is a land of opportunity for investors looking for new and expanding markets. Dairy food
processing holds immense potential for high returns. With the growth of the economy a shift is
seen from the regular diet of cereals to a more varied and nutritious diet of fruit & vegetables,
milk, fish, meat & poultry products. This change in food basket of the nation further highlights the
need to build a robust production as well as supply chain network of milk products. The important
growth drivers are:
 Huge population of Milk cattle

 Growing domestic demand for safe, nutritious, and health-promoting convenience milk
products

 Governments Initiative

 Technical innovation in milk processing

 Growth in retail segment

 Potential to catapult India as major dairy exporting country

Consumer Needs 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. However a large part of the population cannot afford milk. 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.

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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 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 milk 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 infant’s 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 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 the availability of packaged milk.

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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.

India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of a vast
market for low-cost milk. The bulk of the demand for milk is among the poor in urban areas whose
individual requirement is small, maybe a glassful for use as whitener for their tea and coffee.
Nevertheless, it adds up to a sizable volume - millions of litres per day. In the major cities lies an
immense growth potential for the modern sector. Presently, barely 778 out of 3,700 cities and
towns are served by its milk distribution network, dispensing hygienically packed wholesome,
quality pasteurized milk. According to one estimate, the packed milk segment would double in the
next five years, giving both strength and volume to the modern sector. The narrow tip at the top is
a small but affluent market for western type milk products.

There is a long history and tradition of high dairy consumptions in India, as urbanization is an
ongoing process there will be a shift from traditional to more commercial western dairy products

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as a result of changes in lifestyle. The consumption pattern of dairy products in India is quite
unique as compared to some of the western countries. Consumption is primarily centered on
traditional products; however, westernized products are gradually gaining momentum in the urban
areas. Interestingly, buffalo milk accounts for the largest share of the total milk produced (55%)
in the country. Since the pricing of milk is based on the fat content, buffalo milk offers higher
profit margins as compared to cow milk as it contains higher fat.

Despite being the one of the largest milk producing countries in the world, India accounts for a
negligible share in the worldwide dairy trade. The ever increasing rise in domestic demand for
dairy products and a large demand-supply gap could lead to India being a net importer of dairy
products in the near future.

Growing Volumes

The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the
country's population. An estimated 50 per cent of the total milk produced is consumed here. By
the end of the twentieth century, the urban population expected to increase by more than 100
million to touch 364 million in 2000 a growth of about 40 per cent. The expected rise in urban
population would be a boon to Indian dairying. Presently, the organized sector both cooperative
and private and the traditional sector cater to this market.

The consumer access has become easier with the information revolution. The number of
households with TV has increased from 23 million in 1989 to 45 million in 1995. About 34 per
cent of these households in urban India have access to satellite television channel.

Potential for further growth

Of the three A's of marketing - availability, acceptability and affordability, Indian dairying is
already endowed with the first two. People in India love to drink milk. Hence no efforts are needed
to make it acceptable. Its availability is not a limitation either, because of the ample scope for
increasing milk production, given the prevailing low yields from dairy cattle. It leaves the third
vital marketing factor affordability. How to make milk affordable for the large majority with

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limited purchasing power? That is essence of the challenge. One practical way is to pack milk in
small quantities of 250 ml or less in polythene sachets. Already, the glass bottle for retailing milk
has given way to single-use sachets which are more economical. Another viable alternative is to
sell small quantities of milk powder in mini-sachets, adequate for two cups of tea or coffee.

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 3. COMPANY BACKGROUND AND INFORMATION

Profile

Parag Milk Foods Pvt Ltd is an ISO 9000 and AGMARK certified company, committed to
international standards of product quality. Product portfolio includes milk, skimmed milk powder,
whole milk powder, ghee, processed cheese, butter, dahi, proprietary foods like dairy whitener and
gulabjamun mix powder under the brands names of GO, Gowardhan and Pride of Cows ,all made
from 100 percent fresh cow’s milk.

Parag Milk Foods Ltd established in 1992 is currently India's largest private dairies, with an output
capacity of 1,000,000 litres per day. Located in a lush green village called Mancharin Maharashtra
(60 km from Pune), owning the largest cow farm in India as well as Asia's largest cheese plant.

Manufacturing Plants

 Dairy Plant

The company owns dairy plant, which is fully automated and matches the international standards.
It is equipped with the best European technologies. No human contact is maintained right from
reception of milk to the finished product. The plant churns out 1,000,000 litres of milk every day,
has a production capacity of up to 10 MT of butter, 25 MT of ghee and 10 MT of dahi(yoghurt)
and 65 MT of milk powder.

 BhagyalaxmiDairy Farm

It is spread over an area of 26acres and boasts of beingIndia's largest cow farm, housing up to 3500
cows and is also facilitated with one of India's first Rotary Parlours that has mechanized the whole
milking process, and thus increases the quality and hygiene ofproducts range. This world class
facility stringently follows specialized farming, nurturing, breeding and a milking program, which
makes sure that the milk obtained is wholesome and of the purest quality.

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  Cheese Plant

This cheese plant has the production capacity of 40MT and is one of the only two facilities in Asia
with UHT technology. All the equipment is imported from Stephan Machinery Germany, who is
pioneers in cheese processing equipment. This allows the UHT treated cheese stored in optimum
conditions without any refrigeration for a period of 6 months in tropical countries like India. The
company has introduced itself to offer the national markets UHT treated, good quality cheese,
which is available in different forms such as slices; wedges spreads and a range of exciting flavours
under flagship of brand GO.

Apart from these three state of the art manufacturing and processing units, they are also planning
to expand nationwide by opening up two plants.

One in Palamaner, on the out skirts of Bangalore and another in Srirampur, Ahmednagar each
with a milk processing capacity of 500,000 litres a day. The organization is also registered with
US FDA and this is the only brand in India to have obtained the ISO15161 certification from
New Zealand. Owing to the quality of theproducts, these are demanded in areas such as North
Africa, South/West Africa, Middle East and South East Asia. The list of serving clients includes
some of the renowned names such as BEL, Morocco and Baskin Robins, Barista, Yakult
and Cafe Coffee Day.

Product Portfolio

The Company Offers a wide range of milk products. All their products are processed under hygienic
conditions, so that it is safe for the clients to consume. As the whole process is mechanized, it keeps the
products safe from the germs and contaminations spreading by hands. As a result of the unmatched
quality of the products, these are demanded in various world famous companies in various regions of the
world.

The range includes the following products: Gowardhan Milk

 Gowardhan Gold
 Gowardhan Fresh
 Gowrdhan Premium Ghee
 Gowardhan Butter

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  Gowardhan Processed Cheese
 Gowardhan Mozzarella Cheese
 Gowardhan Dairy Whitener
 GowardhanGulabJamun Mix
 Gowardhan Fresh 'n' Thick Dahi
 Gowardhan Trim Dahi
 GowardhanChass
 Cheddar Cheese
 Cheddar Cheese Powder
 Cheese Slices-With UHT
 Creamy Cheese Spread
 Mozzarella Pizza Topping
 Pizza Cheese
 Processed Cheese
 Cheese Wedges
 Top-up
 Go Masala Chaas and Lassi
 Pride of Cows

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Parag Milk Foods IPO

Slow demand and choppy market drove Parag Milk Foods to lower its offer price for its maiden
issue as well extend the closing date for receiving applications from investors. The issue opened
for subscription on May 4 but received a muted response, partly due to its steep pricing, analysts
said.
Shares of dairy company Parag Milk Foods Ltd rose as much as 9.2% on their debut on Thursday,
after the initial public offering (IPO) managed to sail through after an extension of its closing and
a cut in the lower end of its price band earlier this month.

The stock opened at Rs.215 a share and touched a high and a low of Rs.234.75 and Rs.215.70,
respectively. The scrip was closed at Rs.247.80 on the BSE, up 15.26% from its offer price
of Rs.215 a share.

On 6 May, when the IPO was first slated to close, the portion set aside for institutions was not
completely filled in and the firm had to extend it to 11 May. The company also lowered its price
band to Rs.215-227 a share from Rs.220-227.

Capital markets regulator Securities and Exchange Board of India’s (SEBI) Issue of Capital and
Disclosure Requirements stipulate full subscription from institutional investors.

The IPO finally concluded with a 1.15 times total subscription.

The issue was priced at Rs.215 for institutional investors and Rs.203 for retail investors.

Based on the price band, the firm raised Rs.751 crore, of whichRs.300 crore will go to Parag Milk
as fresh capital. The remainder will go to shareholders, including IDFC Private Equity and
MotilalOswal Financial Services Ltd.

Given the downward revision in price, the issue size had marginally increased to 19.5 million
shares when calculated at the lower end of the price band, stock exchange data showed. Earlier,
the company would have sold 1.91 crore shares.

IDFC Private Equity, the wholly-owned subsidiary of IDFC Ltd, offered to sell about 58.4% of its
holding. The Mumbai-based entity, which holds about 20.1% stake, was to sell about 8.26 million
shares, according to the company’s share sale prospectus.

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Other private equity investors in the company—India Excellence Business Fund (IBEF) and IBEF-
1 sponsored by MotilalOswal Financial Services Ltd—were to sell 6.02 million shares.

Kotak Mahindra Capital Co. Ltd, JM Financial Institutional Securities Ltd, IDFC Securities Ltd
and MotilalOswal Investment Advisors Pvt. Ltd were the bankers to the issue.

In 2017, Parag Milk Foods reported a revenue of Rs.1701.09 crore, up from Rs.1622.95 crore in
the previous year. It reported a profit of Rs.107.83 crore in 2017, up from Rs.65.23 crore,
according to the company’s prospectus.

Pride of Cows milk:

Pride of Cows, a brand of Parag Milk Foods, is a first-of-its-kind, superior farm-to-home milk,
from India’s most modern dairy farm, with a production capacity of 25,000 litres a day.

Located in the lush greenery of Manchar, close to Pune, the Pride of Cows dairy farm is spread
over 26 acres, perched between the Bheema River and the Bheemeshwari hills. The farm is the
most advanced in India, equipped with the finest international technology for feeding, milking and
processing, conforming to international dairy practices.

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What makes pride of cows superior milk?

Other kinds of milk change hands over ten times before it reaches you! Poorly fed cows are milked,
then the milk lies exposed in farmers’ buckets that finds its way into larger unhygienic cans.
Several such cans reach the collection centre from where the exposed milk is transferred to a
chilling centre, often subject to power shortages. From the chilling centre, milk is transferred to a
large milk tanker under indian temperature conditions and over large distances, and then
transferred yet again to a holding tank at the dairy. Milk poured into a process tank at the dairy
goes into plastic pouches and then loaded onto a truck in distributor’s plastic crates. Milk lies
indefinitely in crates–waiting to be picked up by the agent and delivery man. Milk finally arrives
at your door almost two days later! As you can see, this milk is far from perfect, stripped of its
vital goodness at every point.

How is pride of cows milk different from other milk?

Pride of cows milk arrives at your doorstep within hours of milking, at its freshest best. Milk from
fine Dutch Holstein Friesian cows is instantly pasteurized, chilled and packaged in bottles in less
than 3 hours! From nutritious feed to hygienic milking, from maintenance of the cold supply chain
at 4ºc to bottling–the entire process is mechanized, in accordance with the best dairy practices in
the world. Once the milk is transferred into barrier-proof bottles, the bottles find their way into the
milk van where the same temperature is maintained right up to the point of delivery.

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Why does milk have to be preserved at 4ºc?

Proper refrigeration is the most important factor in preserving the freshness of milk. Bacteria grows
rapidly in milk above 4ºc, and may cause serious illness. It is thus extremely important to have
strict quality control processes that ensure milk is maintained at 4ºc.

How does pride of cows milk meet your nutritional needs for the day?

A glass of pride of cows milk contains 285 mg of calcium (one-third of the daily recommended
allowance), 8 grams of protein, and 3.6 grams of fat. Plus other essential nutrients such as biotin,
iodine, magnesium, potassium, riboflavin, selenium, thiamine, vitamin a, vitamin b12, vitamin d,
vitamin k.

Is pride of cows milk expensive?

Pride of cows milk is everything that milk should be. It is fresh farm milk that comes from a fine
breed of Dutch Holstein Friesian cows. The cows are given a planned wholesome meal every day,

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with specially grown high quality alfalfa, pennisetum, greens, soya and bran. This ‘total meal
ration’ is designed to keep cows at the pinnacle of health to provide nutritive, wholesome milk that
is naturally full of goodness. The milking process is completely mechanized, and in conformity
with international dairy standards. This degree of dairy perfection does cost money, but
considering all that goes into its making, it is worth every penny!

Where can i order pride of cows milk?

You can subscribe for pride of cows milk by writing to customer care. You can fill up the order
form and submit it online, or register yourself at the specified outlets.

MILKING PARLOR

Pride of cows 50-point mechanized rotary parlor and detailed processes ensure that the milk is
both hygienically and humanely procured. In fact, every cow goes through an electronic health
check before milking to ensure that it is at peak health for milking. And be rest assured that all the
milk that is dispatched out of the dairy is absolutely antibiotic free any cow on an antibiotic course
are automatically exempt from milking. Milking parlor was imported from Germany for upgrading
techniques to be the finest one level to serve better milk with stand to the concerned factors and
with the determining the health of the cows with respect to the similar aspects.

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SWOT ANALYSIS

STRENGTH

1. Advanced dairy technology.

2. Same day delivery after milking process.
3. Mechanized process without any human intervention.
4. Tamper proof pet bottles.
5. Highly productive healthy cows.

WEAKNESS

1. Lack of awareness of brand among the society with respect to the health nutrient values.
2. Limited processing capacity.
3. High price.

OPPORTUNITY

1. Huge untapped market that can be targeted.

2. Other milk products under same brand.

THREAT

1. Competitors like Sarda Farms Nasik entered in the market with competitive price.
2. Improperly organized logistic can damage the business.
3. Threat of local players.

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Competitors

SARDA FARMS IN THE NASIK region is one step ahead they cater to all their services online.
Right from change quantity, resume milk to pause milk supply everything is in your finger tip.
They also provide raw milk along with pasteurized skimmed milk and pasteurized cow milk. They
have a customer care as well to cater to their needs pricing for the 1 litters bottle is 80/-. With same
concept farm to home based. The same technologies used by the Sarda farms.

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 4. BRAND AWARENESS
Pride of cows conducts promotional activities for brand awareness. In the promotional activity the
task is to elaborate over the “actual process of the milking at milk plant. “How it is delivered to
customers?” “How the product is different from any other brands available in the market?” “What
are the benefits of the pride of cows milk?” Pride of cows makes policies to market the product
through following promotional activities.

1. Door to door sampling activity:

Pride of cows conducts door to door sampling activities in well-known societies by distributing
200 ml samples. Also the pamphlets that contains detailed information about Pride of Cows milk.
By doing this activity pride of cows focuses more upon generating leads and new customers. If
anybody is interested in the milk then Pride of Cows sends them 1Ltr milk free of cost as a sample.
Post that customer can take a decision to buy or not.

2. Setting up kiosk at

A. Retail shop

B. Societies

C. Gyms

D. Joggers park

Once the references are generated from the activities the next task is to call them. Make them
understand about the milk and if any customer gets convinced next step is to ask for delivering one
litter milk bottle as sample. Pride of cows target the high class societies which is most important
segment for the business.

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 5. DATA COLLECTION AND DATA ANALYSIS

Data Collection

For the data collection we were given a survey book. We were supposed survey the existing
customers and note down all the information in the given format. We then made an excel sheet of
all the information. Here is a copy of the excel sheet:

Explaining the contents of the format:

UID:- Mentioning the Unique ID given to the customer Kalyan

City:- Mentioning the city where customer resides

Depot:- Mentioning name of the depot from where the milk is delivered to that customer

Route:- Mentioning delivery route

Q1 to Q15:- Listing the answers given by the customers for the particular question

Occupation:-Mentioning occupation of the customer

Contact number:-Mentioning the contact number of the customer

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Mail ID:-Mentioning the email id of the customer

Some facts and figures related to internship:

 The area covered by me for market survey and brand awareness for POC was Kalyan,
Dombivali, Ulhasnagar.
 Total number of buildings visited for sampling– 29
 Total number of samples- 236
Client – 98 samples; events – 114 samples; individual – 24 samples
 Target was to communicate with at least 30-40 customers per day.
 Total number of customers (existing) visited – 210 approx.
 Total number of feedback forms filled - 114
 Total number of prospects 138 and converted – 16 customers
 Average sales order received was 3litres per week

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Data analysis

Analysis of data is compiled for all the six areas.

1. How did you come to know about POC ?

Retail Store
0%
By Call Others Internet
0% 12% 11%
Events
9%

Friends
68%

Looking at the data it is clear that most of the customers came to know about Pride of Cows milk
from their friends and family. To increase this Pride of Cows can give referral benefits to the
customers who refer this brand to others.

2. Why did you choose POC ?

Recommend Others
ation 2%
4%

Freshness
20%

Taste
13%

Quality
61%

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Looking at the stats it is clear that brand has strong position in market because of its quality and
same is the main reason why people prefer Pride of Cows milk over other milk. Many people find
milk fresh and it is indeed fresh milk that is delivered within 24 hrs of its milking.

3. Who are the members in your family consume POC?

elders
13% young kids
16% teenagers
8%

adults
63%

It can be clearly seen that Pride of Cows is mainly consumed by adults followed by young kids.
Adults consume Pride of Cows mainly through tea or coffee and direct consumption whereas
young kids consume it through cereals or milkshakes or directly.

4. How do you mainly use POC?

complem
cooking ent other
breakfast 0% 0% 0%
14%

beverages
30%

direct
consumpt
ion
56%

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 5. What is the format of milk that you buy other than POC ?

similar
3%

tetrapack
10%

pouch
87%

The problem of high MRP is the reason why end consumers do not prefer buying our product.
Thus eventually, clients order competitor products. Another reason for not buying our company’s
product is. Service provided by the delivery boys is good, but sometimes there are flaws too.

6. How would you rate following?

Quality of the Milk

Dissatisfie
Neutral d
1% 0%

Satisfied
42% Extremely
Satisfied
57%

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 Ease of use
Neutral Dissatisfied
2% 1%

Satisfied
36%
Extremely
Satisfied
61%

Delivery
Neutral Dissatisfied
6% 1%

Satisfied
37% Extremely
Satisfied
56%

Responsiveness
Dissatisfied
1%

Neutral
16%
Extremely
Satisfied
Satisfied 44%
39%

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 Customer service

Neutral Dissatisfied
5% 2%

Extremely
Satisfied Satisfied
43% 50%

Payment Facility

Neutral Dissatisfied
4% 1%

Satisfied
37% Extremely
Satisfied
58%

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 7. Social media awareness of Pride of Cows:

300

250

200

150

100

50

0
yes no

8. Overall rating for Pride of Cows:

Dissatisfied
Neutral
1%
1%

Extremely
satisfied
Satisfied 45%
53%

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 5. PROCESS AND PROCEDURE
Methodology

SUSPECT PROSPECT ANALYSE NEGOTIATE CLOSURE ORDER

Theoretically, the foundation of this first sales program was laid by SPANCO sales model.
SPANCO enables organizations to display sales figures with KPI's (Key Performance Indicator)
as well as to generate, manage and convert leads into customers. Areas of difficulty which may
arise in terms of the various phases will be clearly highlighted, so that corrective action will be all
the more effective and thus improve the performance of your sales department. The reason behind
following this sales model was to understand the effectiveness and range of acceptance through
the channel.

Day 1-Induction programme:

The first day was purely about imparting knowledge about the company and various products. We
had to be thoroughly aware about the product, its USP, its process, its limitations, and
delivery/logistics of the company, understanding customers and so on. We were introduced to
some board members and they shared their valued information about dairy industry. Students from
various colleges across Mumbai participated in this internship project.

Day 2-Factory visit:

The second day was completed with a visit to the factory of the company and Bhagyalaxmi Dairy
Farm. The company thought it was crucial for the interns to see for them to visit the production
site and gain first-hand information for themselves. They believed that if the interns are thoroughly
convinced of the product it will be easier to convince the customers.

Day 3 onwards:

Morning visit to depot and the actual field work started where we conducted survey, had many
sampling activities

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The various task covered by the interns were:

 Meeting the primary customers

- The existing customers are the primary customers for the company. Thus each day we were
supposed to visit the assigned route for the day

- In every single route we were supposed to visit 30-40 customers daily.

- Once we meet the customers, we were supposed to collect required data in the survey book.

 Selling activity

- Selling the product was of the activity involved in the project.

- Pitching the quality and price of the product.

- The target was generating new primary customers.

- Recording the daily sales and informing the mentor about the same

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 6. PROBLEM ANALYSIS

 Pricing problem

The major setback which the company faces from its competitors is pricing. As compared to
competitors the price of Pride of Cows milk is high. Here is price comparison of Pride of Cows
and Sarda farms; which is the biggest competitor of the company:

Pride of Cows Sarda

1 Litre Milk 90 80

As seen from the above table, the price of Pride of Cows milk is 10 Rs more compared to Sarda.
Thus customers prefer buying Sarda milk as it is cheap and also well-known brand.

 Delivery Issues

For a product to be successful it is necessary that it is available whenever required. Thus this
requires strong and efficient distribution. Frequent change in delivery boys and their routes is
creating problems within our customers which are the major reason for churning.

 Less awareness about products

Amul, Nestle are the brands which are registered under the minds of masses due to its advertising.
Thus secondary customers mainly prefer Amul or Nestle milk because they are aware of it. When
it comes to Parag Milk Foods products, company is lead runner in Dahi, Ghee, Cheese, Milk etc.
due to word of mouth and long presence. But when it comes to fresh milk segment; being a new
segment the company did not spend much money on its advertising. People are first of all not
aware about the brand Pride of Cows; so it is demanded less. Thus the challenge was to make
customers aware about the brand and the fresh milk.

 Untrained staff

The delivery boys are considered the face of the company. Thus it is necessary for the delivery
boy and the staff to be trained. The attrition rate of delivery boys was high. Thus new delivery

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boys were needed to be trained every time. Also the delivery boys did not pronounce the products
properly and were unable to pitch the benefits of the products when asked by the customers.

 Other problems

- Clients did not demand the product due to past experience, defect product, delivery issues etc.

- Product is not advertised by Parag Milk Foods which makes it less aware

- Non uniformity of service due to many reasons

- Poor flow of information

- No delivery for a small orders

- Lack of accountability

- Packaging issue (Use of plastic bottles)

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 7. SUGGESTIONS AND RECOMMENDATIONS

 Spending on advertisement

In dairy sector the biggest player is Amul. Amul is well known and trusted brand among the
masses. This is because Amul advertises its product. From milk and cheese to lassi and chaas,
Amul makes sure their products are advertised. On the other hand, Parag Milk Foods finds it
difficult to create awareness as their budget on advertisement is less. Thus if the company next
year wants to increase the sales, advertising is must. Since the segment is new born, business
developers are trying to use thebrand name of Gowardhan for reference to sell POC. Spending on
advertisement must include strategies formulation for all; from TVCs to Point of Purchase (POP)
advertisement.

 Training the workforce

The delivery boys are the one who meet the primary customers on daily basis. Thus it is necessary
for them to be well trained, informed and groomed. The depot incharge which I worked with did
not have proper knowledge about product, were laid back, lacked motivation etc. Thus company
must make sure they take some time to train the staff with the help of internal or external trainers.
BDOs receive firsthand information from the customers; thus they must have a sense of trust for
company so they do not commit any fraud.

 Implementing incentive schemes

Business development officers are motivated to work when money factor is introduced. Thus
proper incentive policies must be in place so that BDOs are motivated to cover market with
enthusiasm and book more & more order. Also the incentive plans must communicated properly
to the BDOs as they are unaware of the plans.

 Distribution Problem

Due to summer season, a lot of complaint regarding spoilage of product has been received from
old as well as new customers. Distribution system hasn’t tackled temperature management issue
successfully

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 8. LEARNINGS

 Importance of having your product Knowledge :

It is important to have knowledge about a product, you should know in and out about your product
before explaining it to someone. If you are not sure about your product you cannot convince other
to have it and it is also important that you be prepared with all sort of questions which a customer
can ask, and if you do not know about your product you can lose a customer.

 How to approach a stranger and engage him/her in the conversation :

It is important to have a good communication skill. When you are approaching a stranger to tell
him about your product you don’t have much time to explain him and also he won’t spare much
time in listening to you. So it is important to understand how to approach a stranger and engage
him/her in the conversation.

 How to pacify and win back an annoyed/angry/disappointed customer :

There are customers who are completely dissatisfied about the product and they are not ready to
listen to you. It is important how you approach to them and how you pacify them to again continue
with your service.

 Execution of a plan:

Alongside making a plan it is also important how you execute your plan. You should look at all
the possibilities and make your decision according to it.

 Working in a team:

To execute a plan not only you giving your best for a particular task is important but it is also
important how you coordinate with your team and adjust according to what your team demand.

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 9. CONCLUSION

India is changing rapidly in aspects of life. The effect of westernization is one of the main factors
responsible for societal changes, mostly related to living standards, changing diets, and
accordingly a change of product lines.

The dairy market is very much fragmented and the government involvement is limited. In the near
future as a result of all the changes the dairy chain itself will change. The pace of the change is a
multi-factorial issue mostly depending on the government, government rules and their
implantation. Food safety and food security are very much on top of the agenda in India and it will
remain in the near future as food and feeding this huge population is crucial for sustainable growth
of this ancient culture.

Working with Parag Milk Foods Pvt Ltd was a pleasure for me and it helped me to know each and
every aspect of the Indian milk industry. The main learning here in Pride of Cows brand was that
its milk was not advertised more and because of which it was not well established in the market
which helped me to develop its products in the market through my communication, selling,
negotiation skills and convincing power. This project helped me how to face various problems and
take out solutions being an employee or an intern of a sales profile.

The brand is new in fresh milk segment and faces a strong competition from many existing brands
and substitutes. The company is already planning strategies to increase sales in coming future. The
scope of growth is high; provided company invest in advertising and marketing.

After gaining the first-hand knowledge of market, positioning of brand in the mind of customers
is positive. The only biggest competitor is Sarda; which owns the maximum market share. Thus
the biggest challenge for Pride of Cows milk is to compete with Sarda.

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 10. A PEEP INTO THE FUTURE

Looking forward what the company should do for future growth:

 Improve Customer Service

 Focus on the awareness of the brand

 Keep an eye on their competitors

 Maintain the quality of the product

 Motivational programmes for BDOs

 Digitalization

 Increasing number of depots

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 11. BIBLIOGRAPHY

 http://www.paragmilkfoods.com

 www.prideofcows.com

 http://www.aavinmilk.com/dairyprofile.html

 http://www.indianmirror.com/indian-industries/dairy.html

 http://www.imarcgroup.com/dairy-industry-in-india/

 http://www.authorstream.com/Presentation/mashrafpaul-1172339-1-milk- industry-India/

 http://www.researchandmarkets.com/reports/607378/milk_and_dairy_products_in_india

 www.kidsstoppress.com/2012/01/review-pride-of-cows-milk/

 https://www.indiamart.com/paragmilkfoods/pride-of-cows-milk.html

 http://www.business-standard.com/article/companies/delhi-bengaluru-to-get-by-invitation-
only-milk-from-happy-cows-115031700750_1.html

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