Competitive Analysis of Paras Milk and Other Brands in Central Delhi

PARAS FOODS LIMITED
MARKETING RESEARCH PROJECT ON
A COMPETITIVE ANALYSIS BETWEEN PARAS & OTHER MILK BRAND &
OTHER VIEW IN CENTRAL DELHI MARKET
SUBMITTED UNDER PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
TWO YEARS (FULL TIME) POST GRADUATE DIPLOMA IN BUSINESS
ADMINISTRATION SESSION: 2004-2006
SUBMITTED TO: Mr. Z. Abraham
Senior manger (sales/marketing)
PARAS FOODS LIMITED
SUBMITTED BY: DEEPAK KUMAR ACHARYA
PGDBA –III SEMESTER
GRADUATE SCHOOL OF BUSINESS AND ADMINISTRATION
GREATER NOIDA

ACKNOWLEDGEMENT
In great honor with indebt gratitude I have to thank inspiring guide Mr. G.P. Mishra
Lecturer, Graduate School of Business And Administration, who has taken great interest
in helping me on and often in successful pursuit of my project. I am very much fortunate
to get such a best guide, who encouraged me constantly with good counsel and helped me
to complete the project successfully on time.
I take great pleasure in thanking my organizational guide Mr. Z.Abraham, Senior manager
(Sales marketing) at Paras Foods Limited, New Delhi, who encouraged me with his expert
counseling and guidance for successful completion of research study. I would also like to
thank Mr. Sumit Rastogi, Management Trainee at Paras food Limited, New Delhi who took
pain for us at every step of training and helped us whoever we required at the time of
training.
It is my duty to thank my esteemed director of GSBA, Dr P.L. Maggu for providing me
an opportunity to do this research.
I also extend my heartfelt thanks to all the others in the organization and my friends who
have helped me in doing this project.
DEEPAK KUMAR ACHARYA

CONTENTS
TITLE OF THE TOPICS
ACKNOWLEDGEMENT
FOREWARD
EXECUTIVE SUMMARY
CH. ONE MARKETING RESEARCH
CH. TWO PROFILE OF MILK INDUSTRY
CH. THREE PROFILE OF PARAS
CH. FOURE FUTURE EVENTS OF PARAS
CH. FIVE FINDING AND ANALYSIS-1
CH. SIX FINDING AND ANALYSIS-2
CH. SEVEN CASE STUDIES ON PARAS FOODS
CH. EIGHT CONCLUTION
CH. NINE BENEFITS OF TRAINING
CH.TEN LIMITATION OF PROJECT
CH. ELEVEN BIBLOGRAPHY
CH. TWELVE ANNEXURES

FORWARD
Academics alone cannot sell anything; practically to earth training is required to make a
hardcore marketer. As apart of our curriculum we are required to undergo practical
training, so that we get exposed to practical side of knowledge.
This report which I have prepared on the PARAS milk has taught me a lot in such a short
period, though this is just a tip of an iceberg there are many things which I have to learn
more but during this training I have done and learned, which cannot be qualified or
categorized in this project report. During this training I studied total market of PARAS
FOODS and tried to explore the problems which were faced by PARAS FOODS. I
made my level best to provide solution to that problem by this I was getting practical
knowledge regarding market and marketers.
This training has not only imparted attitudes and skills I can use more successfully in
today’s market place, but is also a great addition to development of my personality.
This training provided me Edge to stand in position to understand market and its
constituents. This training helped to understand consumer behavior which is my favorite
topic in marketing. Crux of the training is that it was a great addition to development of
my personality and to my practical knowledge.

SUMMARY OF THE PROJECT
The topic for my summer training project was” A COMPETITIVE ANALYSIS
BETWEEN PARAS & OTHER MILK BRAND & OTHER VIEW IN CENTRAL
DELHI MARKET”. While working over this project I came across many facts which
company is neglecting. Also the factors that they are neglecting to eat there market share
and can give opportunity to competitors. So before competitors capture the market
PARAS group should rectify there mistakes. Basic objecting of this report to make aware
the company regarding the problems they are facing in the market. And rectify the
problem and can sustain there market share and can maintain there goodwill in market.
OBJECTIVE OF THE PROJECT
• Ascertain growth opportunities as well as threats.
• Brand available in the market.
• Analysis of different brand present in the market.
• Studying consumer behavior.
• Pushing up sales and analysis of sale growth.
• Analysing competency level in the market.
• Give recommendations to VED RAM & SONS LTD. regarding strategic
positioning of PARAS milk.

CHAPTER ONE-
MARKETING RESEARCH

INTRODUCTION TO MARKETING RESEARCH
Market research and marketing research are often confused. 'Market' research is simply
research into a specific market. It is a very narrow concept. 'Marketing' research is much
broader. It not only includes 'market' research, but also areas such as research into new
products, or modes of distribution such as via the Internet.
DEFINATION OF MARKETING RESEARCH
Marketing research is the function that links the consumer, customer, and public to the
marketer through information - information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions; monitor
marketing performance; and improve understanding of marketing as a process. Marketing
research specifies the information required to address these issues, designs the methods
for collecting information, manages and implements the data collection process, analyzes,
and communicates the findings and their implications
TYPES OF BUSINESS RESEARCH
Businesses engage primarily in four types of research:
• Marketing research - Marketing research (also called "consumer research")
comprises a form of applied study which concentrates on understanding the
behaviors, whims and preferences, mainly current and future, of consumers based
economy.
• Market research - Market research has a broad scope and includes all aspects of
the business environment. It asks questions about competitors market structure,
government regulations, economic trends, technological advances, and numerous
other factors that make up the business environment. Sometimes the term refers
more particularly to the financial analysis of companies, industries In this case;
financial analysts usually carry out the research and provide the results to
investment advisors and potential investors.
• Product research - This looks at what products can be produced with available
technology, and what new product innovations near-future technology can
develop.
• Advertising research - This attempts to assess the likely impact of an advertising
campaign in advance and also measure the success of a recent campaign.

TYPES OF MARKETING RESEARCH METHOD
Methodologically, marketing research uses four types of research designs, namely:
• Qualitative marketing research -generally used for exploratory purposes - small
number of respondents - not generalizable to the whole population - statistical
significance and confidence not calculated - examples include focus groups ,
depth interviews, and projective techniques
• Quantitative marketing research - generally used to draw conclusions - tests a
specific hypothesis - uses random sampling techniques so as to infer from the
sample to the population - involves a large number of respondents - examples
include surveys and questionnaires.
• Observational techniques - the researcher observes social phenomena in their
natural setting - observations can occur cross-sectionally (observations made at
one time) or longitudinally (observations occur over several time-periods) -
examples include product-use analysis and computer cookie traces
• Experimental techniques - the researcher creates a quasi-artificial environment
to try to control spurious factors, then manipulates at least one of the variables -
examples include purchase laboratories and test markets
SAMPLE DESIGN
It is definite plan for obtaining a sample from a population dealing with any type of
milk, loose or branded pouched milk. The type of sampling used is random sampling
used is random sampling design (RSI).The respondent in the sample include milk
consumers and retailers.

DETERMINING THE SAMPLE DESIGN
All the items consideration in any field of inquiry constitutes a 'universe' or 'population’.
A cockpit enumeration of all the items in 'population' is known as a census inquiry when
all the items are covered no element of chance is left and highest accuracy is obtained.
But in practice this both may be true. Even the slightest element of bias in such and
enquiry will get larger and larger as the no. of observation increases. Moreover, there is
no way of checking the element of bias or its extent except through a re-survey or use of
sample checks. Besides, this type odd inquiry is not possible in practice in many
circumstances. For instance, blood testing is done from universe for study purpose. The
items so selected constitute what is technically called a sample.
The researchers must decide the way of selecting a sample or what is popularly known as
the sample design. In other words, a sample design is a definite plan determined before
any data are actually for obtaining, a sample from a given population. Samples can either
be probability samples are non-probability samples. with probability sample each element
has a known probability of being included in the sample but in non-probability sampling
the researcher is not allowed to determine this probability samples are those based on
sample random sampling, stratified, cluster/area sampling whereas non-probability are
those based on convenience sampling, judgment sampling and quota sampling
techniques. A brief description of the sample designs is as follows:
SIMPLE RANDOM SAMPLING
This type of sampling is also known as chance sampling or probability sampling where
each and every item in the population has an equal chance of inclusion in the samples, in
case of finite universe, has the same probability of being selected. For example, if we
have to select a sample of 300 items from a universe of 15000 items, then we can put the
name for the numbers of all the 15000 slips of paper and conduct a lottery. Using the
random numbers tables is another method of random sampling. To select the sample,
each item is assigned a number from 1 to 15000.Then, 300 five digits random numbers
are selected from the table. To do this we select random measurements, or the days, with
the help of which they examine the truth contained in the hypothesis.

But in the case of a survey, data can be collected by any one or more of the following
ways:
• By observation:-This method implies the collection of information by way of
investors own observation, without interviewing the respondents. The information
obtained relates to what is currently happening and is not complicated by either
the past behavior of future intentions are attitudes of respondents. This method is
no doubt an expensive method and the information provided by this method is
also very limited. As such this method is not suitable in inquiries where large
samples are concerned.
• By mailing or questionnaires: - the researcher and respondent do not come in
contact with each other if this method of survey is adopted. Questionnaire is
mailed to the respondent with a request to return after completing the same. It is
most extensively used in various economic and business surveys. Before applying
this method, usually a pilot study for testing the questionnaire is conducted which
reveals the weakness? If any, of the questionnaire.
Questionnaire to be used must be prepared very carefully so that may prove to be
effective in collecting information.

ANALYSIS OF DATA
After the data have been collected, the researcher turns to the task of analyzing them. The
analysis of data requires a number of closely related operations such as establishment of
categories, the application of these categories to raw data through coding, tabulation and
then drawing, statically inferences. Coding operation usually done at this stage through
which these categories of data are transformed into symbols that may be tabulated and
counted. Editing is the procedure that improves the quality of the data for coding. With
coding the stage is ready for tabulation. Tabulation is a part of the technical procedure
that improves the quality of the data in form of tables.
Analysis work after tabulation is generally based of the computation of various
percentages, coefficients, etc. by applying various well defined statically formulas. In the
process of analysis, relationships of differences supporting or conflicting with original or
new hypothesis should be subject to test of significance to determine with validity data
can be include any conclusion.
COLLECTION OF DATA THROUGH QUESTIONNAIRES
This method of data collection is quite popular, particularly in case of big inquiries. It is
being adopted private researchers, and workers and private and public organizations and
even government. In this method a questionnaire is sent (usually by post) to the person
concerned with a request to answer the question and return the questionnaire.
The method of collecting data wise the questionnaire to respondents is the most
extensively employed in various economy and business surveys. The merits claimed on
behalf of this method are as follows:
 There is low cost even when the universe is large and is widely spread
geographically.
 It is free from the bias of the interviewer; answers are in respondent's own words.
 Respondents have adequate time to give well thought out answers.
 Respondent, who are not easily approchable, can also be reached convently.
 Large samples can be made use of and thus the results can be made more
dependable and reliable.

THE MAIN DEMARITS OF THE SYSTEM
• Low rate of return of the duly filled in questionnaire; bias due to no response is
often indeterminate.
• It can be used only when respondents are educated and cooperating
• The control over questionnaire may be lost once it is sent.
• There is built in flexibility because of the difficulty of amending the approach
once questionnaire have been dispatched.
• There is also possibility of ambiguous replies or omissions are difficult.
• It is difficult to know whether willing respondents are truly representatives.
• This method is likely to be slowest of all.
Before using this method, it is always advisable to conduct 'pilot study' for testing the
questionnaires. In a big inquiry the significance of pilot survey id felt very much. Pilot
survey is infact the replica and rehearsal of main survey. Such a survey, being conducted
by expert, brings to the light the weakness (if any) of the questionnaire and also of the
survey techniques. From experience gained in this way, improvement can be affected.

DATA COLLECTION
DATA COLLECTION INSTRUMENT
The instruments used for collection of data are:
1. Questionnaires.
2. Oral discussions
DATA TYPE
Two types of data have been collected for analysis.
PRIMARY DATA
It has been collected with help of structured non-distinguished questionnaires, which
were personally administered. Closed and open-ended question were used to get the
desired information.Quetionnaire were designed for retailers. Important scales and
ranking were used for collecting data.
SECONDARY DATA
It has been collected with the help of internet and oral discussions. It is used for a brief
history of liquid milk industry.
SAMPLING DESIGN
It is a non-probability convenience sampling.
SAMPLE SIZE : Consumers 200
SAMPLE AREA : Delhi Region
AREA COVERED : Vikaspuri, Hari Nagar, Paschim Vihar, Janakpuri

CHAPTER TWO-
PROFILE OF MILK
INDUSTRY

INTRODUCTION TO INDIAN DAIRY INDUSTRY
The basic strength of the Indian economy is agriculture on which seventy percent of the
Population depends for their livelihood. And apart of it is the Indian dairy industry.
INDIAN DIARY INDUSTRY IN 1940s
 Inferior quality of locally marketed milk.
 Heavy dependence on imports.
 Unorganized production and processing.
 The rich dairing heritage being eroded
FORMATION OF NATIONAL DAIRY DEVELOPMENT BOARD
The national Dairy development board was created to promote, finance and support
producer-owned and controlled organizations. NDDB’S programmed and activities seek
to strengthen farmer cooperatives and support national policies that are favorable to the
growth of such institutions. Fundamental to NDDB’s effort are cooperative principles and
the Anand pattern of Cooperation.
DAIRY COOPERATIVES
Dairy Cooperatives account for the major share of processed liquid milk marketed in the
country. Milk is processed and marketed by 170 milk Producer’s Cooperative Unions,
which federate into 15 states Cooperative Milk marketing Federations. Liquid milk it
accounts for 90 per cent of the revenue of cooperatives. The MNCs and private players,
which were earlier only into milk products, are now seriously getting into the liquid milk
sector. They realize that money is in liquid milk. Whoever has access to cheap milk
eventually wins the battle in the products business. You can go and buy standard
marketing, brand building experience.
The challenge for cooperatives is not to be competitive to export but to be competitive to
expand their market (for liquid milk) which has a limited purchasing power. Those that
are buying milk today are not going to be buying much more. Cooperatives have to bring
the price down for those who cannot afford it. And only if they do it will it ensure that
imports don’t come in. The real challenge is how to bring prices down, how to reduce
cost’s as the village level, in areas like transportation. Every paisa now counts.

At the heart of the Indian dairy revolution stand the Indian farmers with two to
Five animals that produce some of the cheapest milk in the world by feeding his animal’s
mostly agriculture waste like star. If he expands his operations and herd and starts buying
costly feed he will lose his competitiveness. So how will milk production rise without
raising costs? By taking the cooperative dairy revolution to where it is still weak, the east
and north-east of the country. This will help fight poverty there, raise their own
purchasing power for milk and competitive Indian costs for another ten years. If you wish
to run your business professionally and competitively you have to first benchmark your
costs and stabilized quality at a very high level. That’s the tough part. Then you hire a
brand consultant, evolve a brand strategy and get marketing experts to run the promotions
and do the selling. The key elements are an expanding supply of cheap milk and attention
to quality.
The Dairy Board’s programmers and activities seek to the strengthen the functioning of
dairy cooperatives, as producer-owned and controlled organization’s. NDDDB supports
the development of dairy cooperatives by providing them financial assistance and
technical expertise, ensuring a better future for India’s farmers.
Over the years, brands created by cooperatives have been synonymous with quality and
value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan)
Nandini (Kerala) and gokul (Kolhapur) are among those that earned customer confidence.
SOME OF THE MAJOR DAIRY COOPERATIVES FEDERATION IN INDIA
 Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF).
 Bihar State Cooperative Milk Producers Federation’s Ltd (COMPFED).
 Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF).
 Haryana Dairy Development Cooperative Federation Ltd (HDDCF)
 Himachal Pradesh State Cooperative Milk Producer’s Federation Ltd
(HPSCMPF).
 Karnataka Cooperative Milk Producer’s Federation Ltd (KMF).
 Kerala State Cooperative Milk Producer’s Federation ltd (KCMMF).
 Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF)
 Maharastra Rajya Sahakari Maryadit Dugdh Mahasangh (MAHASANGH)
 Orissa state Cooperative Milk Producer’s Federation Ltd (OMFED)
 Pradeshik Cooperative Dairy Federation Ltd(up) (PCDF)
 Punjab State Cooperative Milk Producer’s Federation Ltd (MIlKFED).
 Rajasthan Cooperative Dairy Federation Ltd (RCDF)
 Tamilnadu Cooperative Milk Producer’s federation Ltd (TCMPF)
 West Bengal Cooperative Milk Producer’s Federation Ltd (WBCMPF).

MILK BUSINESS IN DETAILS
WHAT IS MILK?
Milk is a high value food. It supplies body building proteins, bone forming Minerals, and
health giving Vitamins and furnishes energy giving lactose and Milk Fat in an easily
digestible and assailable form.
DIFFERENCE BETWEEN MILK AND BUFFALO MILK
Constituents Cow milk Buffalo Milk
Fat 3-4% 5-6%
SNF 8.5% 9%
Colour Yellowish White
TYPES OF MILK
Variation in different types of milk is due to the difference in their Fat and SNF content.
Type of Milk Fat% SNF%
Full Cream Milk 6.0 9.0
Standardized Milk 4.5 8.5
Toned Milk 3.0 8.5
Double Toned Milk 1.5 9.0
Skimmed 0.1 9.0
WHAT IS PASTEURISATION?
It is a process of breaking down fat globules of larger size to such a extent that after 48
hours of storage no visible ice cream separation occurs on the top. This provides brighter
appearance, heavier body and richer flavors homogenized milk produces soft curd.

WHAT IS STERLIZATION
It is the process of heating milk to a temperature at 100 degree or above for such lengths
of time that it remains fit for human consumption for at least seven days at room
temperature.
DIFFERENCE BETWEEN LOOSE MILK AND POUCH MILK
Category Loose Milk Pouch Milk
Pasteurization Non pasteurized contains
pathogenic micro(organism
carrying disease such as
cholera, typhoid, jaundice)
Pasteurized, pathogenic
micro-organism is
destroyed.
Consistent Quality And
Quantity
No standardization,
frequent fluctuations.
Standardizes process
(according to ISO 9002 and
HACCP), and avoid
fluctuation.
Adulteration No norms for collection,
storage, distribution etc., so
prone to adulteration
Strict norms for collection,
storage, distribution etc so
on adulteration
Nutritional Factor
Due to the adulteration of
dirty water, urea, vegetable
oils etc, the milk is very
harmful for health
It contains the right amount
of fat, carbohydrates,
proteins, calcium
And vitamins, which are
very required for your good
health
Taste
Bland taste due to
adulteration
Tasty, thick and creamy.
Availability Scarce availability during
summers and rainy season
Available throughout the
year.

Price Frequent fluctuation Consistent for a longer
period
WHAT IS SYNTHETIC MILK?
Synthetic milk is manufactured by adding urea, vegetable oil, detergents, Soya proteins;
sucrose as sweetening agent, salt etc. It is the most dangerous substitute of milk being
sold in the Delhi markets to meet the demand supply gap. It is very similar looking,
product and is very difficult to differentiate visually. It has long term side effects and is
very harmful for the health of any consumer.

FDI PROSPECTS IN INDIAN FOOD PROCESSING INDUSTRY
• Foreign direct investment of around US$1 billion has already been approved in
India's food processing industry since 1991.
• Changing lifestyles, breakdown of the joint-family system, increasing number of
working wives and Western influence (via TV channels) in the urban areas are
fuelling a demand for packaged foods.
• India already has all the requirements for a head-start in the food-processing
industry. Basic materials such as food grains, pulses, vegetables and meats (non-
beef) can be sourced locally or easily imported if local availability is inadequate.
• Foreign investors can own 100 per cent equity in plants they set up. However, it
is advisable to take a local partner.
• Many Indian firms are eagerly seeking foreign partners for joint-ventures to
avail of their technological advantage.
• Supermarkets are just beginning to appear in India's big cities and this is the
time for international chains to set a foothold. Competition will only increase
with time.
• There has been some civilized resistance from ultra-nationalistic quarters of
opinion to foreign food products. This resistance will be less if a local partner is
involved.
• India's liberal intelligentsia is gradually building the opinion that foreign
investments in the processed food sector will benefit rural agriculture, thus
beating the nationalists with their own slogans. The liberal intelligentsia is
gradually prevailing.

DAIRY SECTOR SHIFTING FOCUS ON ETHNIC PRODUCTS
THE dairy industry is witnessing rapid changes. In search of better returns, the industry is
widening its focus to include traditional milk products, and these are emerging as new
profit centre for the organized sector.
As of now, ethnic dairy products account for 90 per cent of all dairy products consumed
in India, according to Mr. P.R. Gupta, Editor, and Technology of Indian Milk Products.
A Dairy India publication, this handbook on process technology modernization has been
authored by dairy professionals such as Dr R.P. Aneja, former Managing Director of
National Dairy Development Board (NDDB) and President of the Indian Dairy
Association; Dr B.N. Mathur, Director, National Dairy Research Institute, Karnal; Dr
R.C. Chandan, President of Global Technologies Inc; and Mr. A.K. Banerjee, Dairy
Consultant and former Managing Director of the Bihar State Dairy Corporation.
According to the book, despite the mass appeal that traditional sweets have, the organized
sector had confined itself to Western products such as milk powder, cheese, table butter
and ice cream because technologies were available for their mass production.
However, over the last two decades, institutes such as the National Dairy Research
Institute and NDDB have made possible assembly line production of ethnic dairy
products such as shrikhand, gulab jamun, paneer, kulfi, mishti doi, dahi and lassi.
While established names in the Indian dairy industry such as Amul, Nestle, Britannia and
Mother Dairy have made deep inroads into this booming market, small companies are
following by example in regional markets.
Some examples are Aarey in Maharashtra, Aavin in Tamil Nadu, Nandini in Karnataka,
Vijaya and Visaka in Andhra Pradesh, Milma in Kerala, KC Das in Kolkata and
Bangalore, Sugam in Vadodara, Mahanand in Maharashtra, Verka in Punjab, Parag in
UP, Sneha in MP and Pars Dairy Farm in Mumbai.

The book also says that a similar trend has been sweeping the dairy world outside India.
DIARY PRODUCTS EXPORT SET TO CROSS RS 500 CRORE
GCMMF PEGS EXPORT TURNOVER AT RS 125 CRORE
DAIRY product exports from the country are poised to cross the Rs. 500-crore mark for
the first ever time during the current fiscal.
A large chunk of this would come from edible casein, exports of which are alone
expected to gross Rs. 350 crores. "This has been a very good year for casein exports, as
international prices have been ruling high," said Mr Gajinder Kumar, Managing Partner
of VRS Foods Ltd.
According to Mr Harsevak Singh, CEO of Mahaan Proteins Ltd, casein exports would
touch about 15,000 tonnes during 2004-05. "The average export realizations this year has
been around $5,600 per tonne this year free-on-board, as against $4,200 per tonne in
2003-04 and $3,150 per tonne the year before," he noted. At about Rs 240 per kg, the
value of exports would be in the region of Rs. 360 crores - an all-time high.
Casein is basically a group name for the dominant class of proteins in milk, responsible
for its viscosity and white colour. Roughly 82 per cent of the total protein present in milk
is constituted by casein, with the remaining 18 per cent being whey proteins. The overall
casein content in milk ranges from 3-3.5 per cent.
Besides VRS Foods and Mahaan Proteins (both Delhi-based), there are two other
manufacturers of export-grade edible casein in the country - Dynamics Dairy Industries
Ltd, at Baramati, and Cepham Milk Specialties Ltd, at Chandigarh.
While VRS Foods alone would export 4,000 tonnes during the current fiscal, the other
three are expected to ship roughly 3,500 tonnes each.

Exports of casein and its derivatives started picking up sometime in the mid-1990s, rising
from 912 tonnes (Rs. 13.22 crore) in 1997-98 to 2,108 t (Rs. 53.25 cr.) in 1998-99, 4,784
t (Rs. 82.67 cr.) in 1999-2000 and 8,224 t (Rs. 158.55 cr.) in 2000-01.
The subsequent years though registered a decline to 6,336 t (Rs. 123.74 cr.) in 2001-02,
7,373 t (Rs. 124.90 cr.) in 2002-03 and 4,223 t (Rs. 76.83 cr.) in 2003-04.
"Last year was bad because the acute milk shortage in the country meant that till
November 2003, we could not even operate our plants. This year, not only has domestic
milk availability gone up, but also global prices have risen to record levels," Mr. Singh
pointed out.
Casein prices largely reflect international prices of skimmed milk powder (SMP). These,
in turn, are dictated by the `market management' measures of the European Community
(EC).
When SMP stocks are high, the EC grants increased aid for production of casein from
skimmed milk, so as to encourage the production of an alternative product and thereby,
discourage the production of surplus SMP.
"Currently, international SMP prices are above $2,000 per tonne, which automatically
reduces production of SMP in European Union," Mr. Kumar said.
According to him, most of the casein exported by the country goes for the production of
sodium caseinates, used in the food industry for enhancing nutritional as well as
functional qualities.
Caseinates are used as binders in sauages and other processed meats and also as
emulsifiers, helping fats to stay suspended in water based products such as milkshakes,
coffee creamers, and ice creams.

SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY
Strengths:
• Demand profile: Absolutely optimistic.
• Margins: Quite reasonable, even on packed liquid milk.
• Flexibility of Tremendous. With balancing equipment, you can keep on adding to
your product line.
• Availability of raw material: Abundant. Presently, more than 80 per cent of milk
produced is flowing into the unorganized sector, which requires proper
canalizations.
• Technical manpower: Professionally-trained, technical human resource pool,
built over last 30 years.
Weaknesses:
• Perishability: Pasteurization has overcome this weakness partially. UHT gives
milk long life. Surely, many new processes will follow to improve milk quality
and extend its shelf life.
• Lack of control over yield: Theoretically, there is little control over milk yield.
However, increased awareness of developments like embryo transplant, artificial
insemination and properly managed animal husbandry practices, coupled with
higher income to rural milk producers should automatically lead to improvement
in milk yields.
• Logistics of procurement: Woes of bad roads and inadequate transportation
facility make milk procurement problematic. But with the overall economic
improvement in India, these problems would also get solved.
• Problematic distribution: Yes, all is not well with distribution. But then if ice
creams can be sold virtually at every nook and corner, why can’t we sell other
dairy products too? Moreover, it is only a matter of time before we see the

emergence of a cold chain linking the producer to the refrigerator at the
consumer’s home!
• Competition: With so many newcomers entering this industry, competition is
becoming tougher day by day. But then competition has to be faced as a ground
reality. The market is large enough for many to carve out their niche.
Failure is never final, and success never ending”. Dr. Kurien bears out this statement
perfectly. He entered the industry when there were only threats. He met failure head-on,
and now he clearly is an example of ‘never ending successes! If dairy entrepreneurs are
looking for opportunities in India, the following areas must be tapped:
• Value addition: There is a phenomenal scope for innovations in product
development, packaging and presentation. Given below are potential areas of
value addition:
• Steps should be taken to introduce value-added products like shrikhand,
ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead
to a greater presence and flexibility in the market place along with
opportunities in the field of brand building.
• Addition of cultured products like yoghurt and cheese lend further strength
- both in terms of utilization of resources and presence in the market place.
• A lateral view opens up opportunities in milk proteins through casein,
caseinates and other dietary proteins, further opening up export
opportunities
• Yet another aspect can be the addition of infant foods, geriatric foods and
nutritional.
• Export potential: Efforts to exploit export potential are already on. Amul is
exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the
new GATT treaty, opportunities will increase tremendously for the export of agri-
products in general and dairy products in particular.
Threats:
Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of
place in the industry. Organized dissemination of information about the harm that they
are doing to producers and consumers should see a steady decline in their importance.
The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far
outweigh ‘weaknesses’ and ‘threats’. Strengths and opportunities are fundamental and
weaknesses and threats are transitory. Any investment idea can do well only when you
have three essential ingredients: entrepreneurship (the ability to take risks), innovative
approach (in product lines and marketing) and values (of quality/ethics).
The Indian dairy industry, following its delicensing, has been attracting a large number of
entrepreneurs. Their success in dairying depends on factors such as an efficient yet
economical procurement network, hygienic and cost-effective processing facilities and

innovativeness in the market place. All that needs to be done is: to innovate, convert
products into commercially exploitable ideas. All the time keep reminding yourself:
Benjamin Franklin discovered electricity, but it was the man who invented the meter that
really made the money!
CHAPTER THREE-
PROFILE OF PARAS
FOODS

ABOUT PARAS FOODS LIMITED
Paras proudly present itself as a premium brand in the Indian dairy industry. A list of our
nutritious and premium quality products include milk, pure ghee and skimmed milk
powder in bulk and consumer pack, dairy whitener, table butter, white butter,
dematerialized whey powder, casein edible and industrial grade.
The taste, flavors and excellent quality of our SMP-ISI & pure ghee have made them as
the brand leader in the market. The major objective of our business is to enhance the
profitable production of dairy products.
We are in the business of milk for more than 40 years. Our milk is entirely collected from
village level collection that are developed by us. The quality of our milk, regularity of
supply and value of commitment have made us the hallmark in our sphere of operation.
Today we are the second largest distributors of milk in Delhi metro.
The taste and flavors, low sodium level. Low ash, content and low plate count of our
dairy products has fetched us accolades of our clients. Our products have found wide
acceptance with countless prestigious institutions. it includes Nestle India Limited,
SmithKline Beecham, Hindustan Lever Limited, Mother Dairy, Kotkatta and countless
others.
Ch. Ved Ram, the founder and promoter of our company is one of the connoisseurs in the
dairy farm industry. Ch. Ved Ram & sons started as our partnership company in
April1986.Our first unit was established in 1987 under company’s name VRS Foods
Limited and since then we have maintained our position as the brand leader.
In tune with the rapidly changing technology, production units are well armed with the
latest equipment. These facilities enables us to cater to the needs of our clients by selling
over 2, 50,000 liters of milk per day in Delhi metro.

Our wide network backed by a team of dedicated and skilled professionals is ready on its
tows to provide you fresh and nutritious dairy products. we always welcome all your
queries and leave no stone unturned for your utmost satisfaction.
CORPORATE OVERVIEW
An organization involved in quality milk collection practices since 1960.
A very strong rural procurement network comprising of more than 3000 villages across
western Uttar Pradesh in North India arising after immense infrastructure investment in
the rural areas by the organization. Five state of the art manufacturing units complying
with ISO 9001-2000 and HACCP standards of system implementation. Total handling
Capacity 1.9 million ltrs. a day. Largest marketers of Polypack milk in Delhi in corporate
sector.
Only player in the North India to market bactofuge quality milk. First player in private
sector to offer Homogenized toned milk through automatic milk vending machines and
FRP tanks in North India. A major exporter of edible grade casein and other milk
products.
History: The organizational history reflect back to 1960, when the procurement of milk
started with 60 ltrs. of milk. The only fundamental that worked right from day one is the
quality, which got reinforced everyday of progress and got reflected as victory through
quality.
VISION: PARAS will continue to grow as an FMCG major, delighting national and
international customers with quality products and services
VALUES:
• Trust
• Openness
• Commitment
• Integrity
• Growth Orientation
• Quality
• Value For Money

• Customer Orientation
BUSINESS OPPORTUNITIES
NATIONAL
Paras is the second largest distributor of milk in Delhi and catering to its customer since
the last forty years. We are looking forward to reliable business partners including dealers
and collaborators for effective business. We operate in close association with the dairy
expert and continuously upgrade the quality of our products.
get your act together to make the most of our position in the dairy market. You will be
provided with all the necessary facilities and expert guidance that you need to start up a
retailer booth for our dairy products.
We are searching for collaborators with existing techno-commercial infrastructure
opportunity and you will find it hugely rewarding and fruitful.
INTERNATIONAL
India offers countless opportunities in the field of dairy industry, which is still
flourishing. Encouraged by success in the domestic market, Paras is expanding the
horizon of its business and looking forward to the importers and foreign buyers for its
dairy and industrial products.
Paras group enjoys the service of a state-of-art production unit for the manufacturing of
acid casein and dematerialized whey powder. Its leading position in the domestic market
will give you an edge over the others. Grab this incredible opportunity and begin a
rewarding business relationship with the Paras group, which is the hallmark for the
quality of milk, regularity of supply and value of commitment.

QUALITY
VRS Foods, a part of PARAS group has fetched the accolades of its client by providing
premium quality edible casein and whey powder. The export oriented and import
substitute project are at par with the best in the international market.
Casein is an integral constituent of milk, which is required for the development of every
human being. It is vital source of energy and builds immunity against the foreign bodies
that are responsible for causing various fatal diseases.
Quality at affordable prices is the mantra in our production unit. It is equipped with latest
equipment and trained and skilled staff. We understand that the essence of good product
quality lies with the initial raw milk quality. Our milk procurement process surpasses
stringent quality tests that ensure premium quality.
The acid precipitation of milk and subsequently purifying the protein prior to its drying is
achieved by a precise control over washing cycles, washing pattern and the use of
dematerialized water. The monitoring of curd quality at various stages of washing and
drying yield the product with the requisite parameters that meets the demanding
international market.
We have pioneered the manufacturing of whey powder with dematerialized level up to
90%.Minerals are removed through selective nano filtration and Ion Exchange process.
Dematerialized whey is then evaporated and crystallized before spray drying. Rigid
quality control conditions are maintained to minimize to highly nutritious whey proteins.

PROCUREMENT PROCESS
In western UP milk production is scattered with small-scale producers. A quick survey
done in the recent past reveals the fact that the average land holding is very small. The
number of family members is high as compared to the buffaloes that a family owns. The
number of buffaloes is less with 20%-50% dry or pregnant, thus has to feed such animals
that are not in location.
The average milk yield per lactation of buffaloes is 300 days ranges between 900kgs to
about 1500kgs.producers retain the 25% of the produced milk and rest of the 75% is
marketing surplus. Thus these quality of surplus milk available with a producer ranges
from 2 kgs-10 kg. per day. An adequate system of organizing milk procurement, quality
control, quick testing and chilling and transportation is required in most of the villages.
Keeping this in view VRS Foods already organized about 500 village centers. Every
center is located in pucca room owned by the company or hired locally and provided with
a small laboratory for conducting quick platform test including fat%, SNF%, acidity test,
COR, BR and CNR on which payments is made. Company has also provided running
water for the cleaning of utensil, equipment and storage of milk.
During the flush season at each village 300kg to 700 kg of milk is collected. As par the
time schedule, small size vans collect the milk and transport is quickly to the nearest
chilling center/dairy plant. In these plants milk is cooled to a temperature of less than 9
degree centigrade to preserve its quality.
At certain centers facilities for the pre-cooling of milk, is also available. It also avoids
any rise in acidity while storage and transportations.

PARAS PRODUCTS
Bactofuged Milk Bactofuged - Homogenised Toned
milk through milk vending machine
and FRP tanks.
Bactofuged Full Cream Milk
Bactofuged Toned Milk
Bactofuged Double Toned Milk
Bactofuged Paras Nanadan - A low fat
milk
Dahi Paras Dahi & Misti Doi
Lassi Sweet & Salt
Paneer
Muzzarella Cheese
UHT Processed Milk Homogenized- UHT processed Tonned
and Double Tonned milk in Ceka Pack
Desi Ghee Desi Ghee in Pouches, Refill Pack and
Tins
Skimmed Milk Powder
Paras Instant Dairy Mix
Dematerialized Whey Powder
Edible Casein
Aqua Mineral
International

Skimmed Milk Powder
Edible Grade Casein
Dematerialized Whey Powder
FUCTIONAL APPLICATION
CASEIN:
INTERNATIONAL QUALITY EDIBLE CASEIN
• For nutraceutical, Health foods, Dietetic and Infant Food Application.
• For conversion in caseinates, hydrolysis’s.
• For Medical Nutrition and Geriatric Foods.
• For lactose free food formulations.
• For sports Foods and weight Management formulas.
• For Meat Products, Baked goods application
• For leather chemicals, paper chemicals, media preparations etc.
• Paras Acid casein finds a ready market in Germany and also caters to the
domestic market.
WHY NAD WHEY PRODUCTS
WHY POWDER DEMINERALISED 90%
• For Infant Food Formulae, closest to the mothers milk.
• For life style and dietetic food formulation etc.
WHY POWDER DEMINERALISED 70%
• Cost effective substitute to SMP for BAKERY, confectionary and Ice cream
applications.
• Excellent bulking agent for soup, sauces and salad Dressings.

For Dairy mixes, coffee whitener, Frozen dessert spice and seasoning blends, etc
PARAS AQUA MINERAL WATER
Paras aqua mineral is hygienically packed, mineral balanced, multistage micro-filtered,
disinfected by ultraviolet treatment and ozone mixing. Mineral are balanced by using eco
friendly technology "reverse osmosis system".
Company has well equipped physio-chemical and microbiological laboratory all
parameters are tested by trained chemist at different size of bottles by automatic
machines including bottle rinsing filling and capping machines. Company has in house
arrangement of manufacturing. The present capacity of bottle manufacturing is 2,000
bottles per hour.
PROCESS OF MANUFACTURING: Raw water is drawn from underground protected
spring. water is stored, disinfected and passed through profilers example multigrade filter,
carbon filter softria. After prefilteration water enters in reverse osmosis system and
mineral continents are balanced as per IS-14543 requirements. Product is disinfected by
using ultraviolet technology and ozone mixing. ozone also provide safety to product
during storage and increases the shelf life.
Paras Aqua mineral is available in the following packages:
• 20 litr. pet and polycarbonate returnable bottle.
• 1 litr. disposable bottle
• 500ml. disposable bottles.
• 250ml. disposable HIPS glasses

INTRODUCTION OF UHT MILK AND BACTOFUSED MILK IN
INDIA BY VRS FOODS LIMITED
Have a glassful of our Paras Milk daily in the morning and start your day with a new zeal
and energy. It is one of the most essential bone-growing nutrients and the best source for
calcium and vitamin D. Paras milk doesn't contain any artificial ingredients and is mostly
collected from the Village Level Collection Centers that makes it an authentic product.
Paras fresh milk represents Good Hygienic Quality at source of milk collection. Paras
Milk is collected from milk sheds of western UP belt with stringent quality control that
ensures clean hands, clean utensils, clean utensils, clean hygienic sanitation at the time of
milking the milks cattle, during storage and transportation to chilling centers, on way to
hi-tech ISO 9001 and HACCP certified Paras Milk Plants at Gulaothi and Sahibabad.
Paras Fresh Milk ensures that the process of collection of milk is 100% safe and free
from harmful additives like sodium hydroxide (for preserving), urea (for forming and
thickening), calcium carbonate (for whitening) and even tap/well water (for enhancing
volume).
Paras Fresh Milk goes though the process of BACTOFUGATION before UHT treatment
to ensure physical removal of high heat resistance spores, which otherwise sustains high
heat treatment.
Paras Fresh Milk gives you the complete goodness and freshness of milk with all vital
nutrients necessary for human growth. There is No-Reconstitution. There is No Powder
Added Only fresh, pure and safe milk. Ready to consume. That Tastes Good Looks Good
and Smells Good.

PARAS GROUP LAUNCHES ‘BACTOFUSED’ MILK
AFTER UHT milk, it is `bactofuged' milk that is making waves in liquid milk marketing.
First it was the Rs. 360-crore Chennai-based Hatsun Agro Products Ltd (makers of Àrun'
ice-cream and `Komatha' and Àrokya' milk), which, nearly four years back, introduced
the `bacteria clarification' process to remove àll pathogenic bacteria' in order to ensure
that its milk was àbsolutely safe' for drinking.
Now it is the turn of the Delhi-based Rs. 400-crore Paras group (Vedram & Sons), which
sells about 2.5 lakhs litres per day (LLPD) of liquid milk in the National Capital Region
under the `Paras' brand, to launch milk that is "not just pasteurized, but bactofuged".
Mr. Gajinder Kumar, Managing Partner of Vedram said: "We are the first and only dairy
in North India to use bactofugation technology that makes our milk 100 per cent free of
harmful bacteria."
What is bactofugation and how is it different from pasteurization or ultra high
temperature (UHT) treatment?
Pasteurization involves par-boiling (heating below boiling point) the milk to about 75
degrees Celsius for roughly 15 seconds using continuous-flow `high temperature-short
time' (HTLT) process heat exchangers.
This process kills more than 90 per cent of the bacteria, especially the harmful pathogens
such as Mycobacterium bovis (which causes bovine tuberculosis that also affects humans)
and Salmonellae (responsible for gastrointestinal diseases and typhoid fevers).
Pasteurization does not, however, destroy the spoilage bacteria that cause curdling.
Also, it leaves out certain heat-resistant bacteria (including dead bacteria) and spores
(seeds) that can break down the milk proteins or, in certain cases, cause `sweet curdling'.
To address this, dairies resort to UHT treatment, which involves heating the milk up to
137 degrees Celsius for two seconds and then packaging it under aseptic conditions.
Milk processed in this way is virtually sterile and can be kept un-refrigerated in tetra
packs for several months.
"But UHT milk is expensive because it requires packing the milk in tetra packs, which
costs about Rs. 6, compared to just 50 paisa for ordinary plastic pouches," said Mr.
Kumar.
Bactofugation, he claimed, achieves the objective of getting rid of all heat-resistant
bacteria and spores without entailing much additional cost.
The bactofuged milk also has a higher shelf life than the normal pasteurized milk, he
said. "We are making available bactofuged milk at the price at which other dairies are
offering pasteurized milk."

Unlike pasteurization and UHT treatment, bactofugation is a non-thermal process for
removing bacteria, particularly the heat-resistant spores, using a high-speed centrifugal
separator or `bactofuge'.
Essentially, it employs the principle of expelling the bacterial spores (which are heavier
than milk) through centrifugal force action.
"There is nothing new to this technology. Our dairies in Mehsana and Gandhinagar have
been using bactofuges for the last five years. But we never felt the need to project this as
a USP," said Mr. R.S. Sodhi, General Manager (Marketing), Gujarat Co-operative Milk
Marketing Federation (GCMMF or Amul).
Since GCMMF is an exporter of milk powder and European Union regulations require
the product to be completely free of dead bacteria, "we have been using bactofugation as
a matter of course".
Moreover, the need for bactofugation really arises only for making cheese or other
cultured products.
"The primary objective of this treatment is to remove heat-resistant spores like those of
butyric acid bacteria, which may germinate during the ripening of hard cheeses and
negatively affect product quality. For liquid milk, pasteurization is more than sufficient
since it destroys the major disease-causing micro-organisms," a dairy technologist said,
quoting extracts from Ionel Rosenthal's Milk and Diary Products: Properties and
Processing, a standard industry reference manual.
Mr. Sodhi claimed that the bactofuged milk campaign used by Paras was in response to
GCMMF's hard-sell about its milk in Delhi being `fresh' and not reconstituted from milk
powder.

COMPETITORS OF PARAS FOODS LIMITED
 MOTHER DAIRY
 AMUL
 PARAG
 GOPALJEE
 PARAM
 DELHI MILK SCHEME
 OTHER MAJOR LOCAL PLAYERS
PARAS TAKES ON MOTHER DAIRY IN DELHI ICE-CREAM
MARKET
THE Delhi ice-cream market will have a new player with the Paras brand making a foray
into the segment.
Positioning itself on a par with Mother Dairy's ice-cream products, makers of the Paras
brand, the Rs. 350-crore VRS Foods, has already set up a new ice-cream plant in UP by
importing machinery from Alfa Laval of Sweden.
Speaking to Business Line, Mr P.N. Kanth, General Manager, Marketing, VRS Foods,
said, "Our ice-cream range will straddle all segments from the premium to the lower
end of the market. We will be pricing the products on a par with Mother Dairy and
will be cheaper than the market leader, Kwality Walls."
Currently, Kwality Walls pegs its offerings at a near 20 per cent premium compared with
Mother Dairy. The company has already built up a cold chain for distributing its
refrigerated items such as milk and yoghurt and will be riding the same chain for its ice-
creams. Besides the company also has the advantage of sourcing the milk for making its

ice-creams from its existing plant at Sahibabad in UP. Says Mr Kanth, "Today we have
our own facilities to procure 2.5 lakhs liters of milk per day with several chilling centers.
The milk used will be our own and there will be no outsourcing of milk to manufacture
our ice-creams."
In fact, VRS Foods is also actively eying taking over milk dairies in Maharashtra and
Chennai to supply its Paras brand of milk in pouches in these parts. Besides it is also in
talks with the West Bengal Dairy Federation to market the Paras milk brand with the help
of milk dairies in the region.
Primarily a dairy brand, Paras has also stretched its brand into yoghurt. Other recently
introduced products include white butter and mozzarella cheese and paneer.
Besides these products, VRS Foods has also launched a mineral water and soda brand
under the Paras franchise this year.
Today, in spite of having an exhaustive retail network of 800 stockiest reaching out to
two lakhs retail outlets across the country, its reach in the southern states is still limited
due to the lack of a cold chain and manufacturing facilities. It also intends strengthening
its retailing activities by installing vending machines in and around Delhi. "Since the
Government does not encourage private players to set up milk booths we are
increasing the number of vending machines for milk in Delhi,'' says Mr. Kanth.
However, its flagship and oldest product has been its ghee which sells at an almost five
per cent premium to existing ghee brands in the market. In a bid to gather volumes for its
ghee brand, the company has launched its `Ghar ki Rani' contest for which its consumers
have to write slogans on the brand. The prizes include gold ornaments. All consumers of
Paras ghee can take part in the contest.

PARAS SCOUTS FOR DAIRIES TO EXPAND NATIONAL
PRESENCE
FROM scouting around for suitable dairies to acquire, to intensifying efforts to deliver
Paras products at your door-step — the Paras group has lined up a slew of activities in the
forthcoming year towards increasing its presence in the national dairy scene.
Touted to be the second largest supplier of poly-pack milk in the Capital, after Mother
Dairy - Paras is actively looking for dairies that it can acquire, particularly in other
metros, to establish a national presence.
Mr. K.K. Bhadra, Head of Marketing Milk with the Paras Group told Business Line
that the company was open to acquisitions, provided two basic requirements were
satisfied — access to good quality milk and quality processing infrastructure. Though
contract manufacturing was the order of the day, he said the company was not open to
such alliances as it was difficult to keep a check on quality.
Another initiative that the company has embarked on is a pilot project to have a dedicated
Paras retail outlet where all company products would be available less than one roof.
While this plan was still at a nascent stage, he pointed out that it made more economic
sense, as it was a one-time investment, as against a multi-vending outlet, which was a
recurring expenditure for the company.
The idea was to have a `Paras privilege club', where consumers could call for all their
products and have them delivered at a time convenient to them. "Given that product
differentiation across the brands is difficult in this segment, it is the services that will
make a difference," he points out; and rightly so, considering that the dairy segment has
long-distance runners such as Amul, Mother Dairy, Nestle and Britannia. Paras's dairy
segment is an estimated Rs. 300 crores business and the company expects to double this
by March 2004. Also on the anvil are innovative products such as drinking yoghurt and
flavored milk. Paras is also looking to re-introduce its table-butter in the market with a
more contemporary packaging.
While the company is also present in the bottled water business, with its Paras brand of
water, he said the company was open to diversification into "both related and unrelated
business areas."
Meanwhile, the company is looking to boost its exports from Rs 40 crore in the last fiscal
to about Rs. 60 crores in the current fiscal. Mr. P.N. Kanth, General Manager-
Marketing, VRS Foods Ltd (a Paras Group company) told the correspondent that exports
were expected to increase on two accounts. Intensifying exports in the present markets,
besides tapping new frontiers. Paras exports its full milk powder, casein, dematerialized
whey powder and skimmed milk. At present, the company exports to the US, Germany,

South-East Asia, West Asia and Africa. It is looking to enhance its presence in these
markets and look at new markets, he said.
PARAS FIELDS MOBILE VENDING MACHINES
The Rs. 400-crore Paras group, the second largest supplier of fresh liquid milk in the
Capital after Mother Dairy, has hit upon a novel concept that might just upset market
leader Mother Dairy’s monopoly in the token milk category which has traditionally been
cheaper by Re 1 than packaged milk. Paras have introduced mobile auto vending
machines which dispense this token milk at Rs. 13 per litre.
“Since the Government does not encourage private players to set up milk booths we are
putting up mobile vending machines for milk in Delhi,” Paras group’s managing partner
Gajinder Kumar told FE.
While Paras maintains that the aim is to tap the unbranded milk segment—45 per cent of
the total milk consumed in Delhi NCR is in the form of unbranded category—industry
observers believe that it’s a strategy to hit Mother Dairy.
“We are intending to upgrade this consumer from unsure, unsafe, unbranded milk to an
option where they have control over quantity and faith in the quality,” Paras Group’s
marketing head KK Bhadra said.
The company plans to put up Paras Milk Point (PMP) machines at various FMCG outlets
all over the Capital. Over 50 machines—each costing over Rs 2 lakh—would be installed
in phases over the next four months to cater to toned milk users. According to Mr.
Bhadra, over 28 of these machines have been test-marketed on the outskirts of Delhi.
The PMP machines carry 250 litres of milk and also incorporate an in-built refrigerator.
According to Paras, it has undertaken feasibility studies in the market before introducing
this concept. Paras brand currently reaches 9,000 outlets in and around Delhi, and the
group is looking at penetrating fresh markets in the northern region.
Paras’ total processing capacity of three units, one at Gulowti and two at Sahibabad in
UP, is 14 lakhs litres per day. The two facilities at Sahibabad are being revamped with an
investment of Rs. 5 crores.

PARAS GROUP PLANS FORAY INTO FLAVOURED MILK
THE small-versus-big brigade has another contender.
The Rs 300-crore Ved Ram & Sons Foods, which owns the `Paras' brand of dairy
products, intends to give a spirited fight to well-entrenched names such as Amul, Nestle
and Britannia in the dairy sector.
While the Paras group has been a serious player in the liquid milk category in select
northern markets, the group now plans to enter the flavored milk segment.
"We are planning to venture into flavored milk, given that our core competence is
in the procurement of liquid milk," Mr. K.K. Bhadra, Head-Marketing, Paras group,
told Business Line. He said that the foray could happen as early as next year.
While Nestle India has recently rolled out fruit-flavored milk in Delhi, Mumbai and
Pune, other players in this category include Britannia's Milkman, N'joi from Parle, and
Mother Dairy.
While the Paras group's dairy portfolio comprises poly pack milk, ghee, skimmed milk
powder, dairy whitener, table butter and dematerialized whey powder, the group also
markets mineral water. The company's last foray was in the curd segment earlier this
year, priced on a par with Mother Dairy's curd - at Rs 14 for 400 gm and Rs. 8 for 200
gms.
According to Mr. Bhadra, the Paras brand currently reaches 9,000 outlets in and around
Delhi, and the group is looking at penetrating fresh markets in the northern region, having
begun by making inroads into Uttar Pradesh and Haryana. However, given that
distributing milk and milk-based products nationally would require heavy investments in
the supply chain, manufacturing facilities and logistics, the company does not foresee
itself spreading its milk products to all regions immediately.
In another development, the group has rolled out an exercise aimed at creating the
necessary infrastructure at non-refrigerated retail points. The company had begun
distributing refrigeration units (similar to visi coolers) with capacities ranging from 140
litres to 280 litres in small retail outlets, Mr Bhadra said.
The company has manufacturing bases at Sahibabad and Gulaothi (near Hapur) in Uttar
Pradesh. In a recent initiative, the company has introduced a privilege card scheme for
doorstep delivery of milk.
After Mother Dairy, Paras is the second largest supplier of poly pack milk in the Delhi
market.

1. INCOME LEVEL OF DIFFERET CONSUMERS
0%
5%
10%
15%
20%
25%
30%
35%
40%
UPTO 10000 10000-25000 ABOVE
25000
A. It is clear from analysis graph that income level up 10000 is very high
i.e. 38% means consumer is very conscious about his money and
purchasing power.
B. Below that income level of 10000-25000 is 34%.This segment
consumer has good purchasing power but to a certain limit.
C. Lastly the income level of above 25000 is very less i.e. 28% only. This
segment is very less and they can spend more than other two
segments.

2. PER LITRE CONSUMPTION OF POLY PACK MILK BY
CONSUMERS
30%
31%
32%
33%
34%
35%
36%
37%
0.5-1 LITRE 1-1.5 LITRE >2 LITRE
A. Their are only 32% consumers who consume 0.5-1 litre of poly pack milk
daily reasons are less number of family member or lower income group.
B. Now coming to second step it is clear from graph that 36% of milk
consumer consume 1-1.5 litre of milk per day. This is due to medium family
member or good income level.

C. 32% of consumer consume >2 litre of milk per day. Analysis say that they
require >2 litre milk due to many reasons i.e. number of children, big
family, excellent income level.
3. MOST PREFFERED BRAND
0%
10%
20%
30%
40%
50%
60%
PARAS AMUL MOTHER
DAIRY
OTHERS
A. It is clearly seen from the graph that mother dairy is the undisputed
market leader.retailes are happy to keep mother dairy and it’s no.1 choice
of consumers.
B. Paras stood second with 23% consumers.paras are ranked second by
consumers.
C. Amul stood second with 16%.only 16% of consumers prefer to consumer
and retailers also show keen interest in keeping it.
D. Others players are having very less market i.e of 8% only.

4. SATISFACTIONAL LEVEL
YES
NO
YES
NO
A. 92% of consumers were satisfied with their existing brand. Analysis shows
that brand loyalty exists in customers also these consumers are having trust
on their brands.
B. 8% of consumers are not satisfied with their existing brand due to many
reasons i.e.

1. Poor service provided by retailers.
2. Quality and taste problem.
5. OTHER DAIRY PRODUCTS CONSUME BY CONSUMERS
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
PANEER DAHI LASSI ANY
OTHER
A. In other milk product segment 32% of consumer prefer to buy
paneer.due to brand loyalty.
B. 41% of consumers prefer to buy their brand of Dahi and rests of
consumer prefer to consume home made dahi.
C. Only 17% of consumer use to buy lassi.but it’s fluctuating in summer
season its sale touches sky but in off season it remains at stagnant
position. Other consumers prefer to buy fresh lassi i.e. made in front of
them with pure DahI.
D. 10% of consumers consume other products like butter, chease e.t.c.

1. MOST PREFERED BRAND
0%
10%
20%
30%
40%
50%
60%
PARAS MOTHER
DAIRY
AMUL OTHERS
A. After distributing Rs 2 discount coupon on Paras full cream milk the Paras
sale increased from 20% to 26%.means there was increase of 6%.this was a
strategy to increase the sale.
B. Mother dairy’s sale was not effected it remained at 53%.
C. Amuls sale decreased from 16% to 15%.Amul customer really given
preference to Paras and according to analysis from declined 1% customer
of Amul will stick with Paras .
D. Other player’s sale declined from 8% to 7%.and according to analysis the
declined 1% customer will stick to Paras.

2. STRENGTH OF PARAS MILK
0%
5%
10%
15%
20%
25%
30%
35%
Q
U
A
LITY
TA
S
TE
P
R
IC
EA
V
A
ILA
B
ILITY
S
E
R
V
IC
E
A. It is clear from the graph that quality is the major strength of Paras with
29%.29% consumer preferred its strength as its quality.
B. 28% consumer preferred taste as the major strength of Paras milk. As we
can see customer preference is different at different level.
C. 16% of consumers preferred price as a strength of Paras milk.
D. 15% of consumer preferred availability as a strength of Paras milk.
E. 112% consumer preferred service as a strength of Paras milk. This
percentage makes clear that service provided by Paras milk is poor. As
today’s business is standing only on the basis of services they are providing to
their customers. Paras should improve the service provided to customers.

3. WEAKNESS OF PARAS MILK
0%
5%
10%
15%
20%
25%
30%
35%
Q
U
A
LITY
TA
S
TE
P
R
IC
EA
V
A
ILA
B
ILITY
S
E
R
V
IC
E
A. According to 32% of consumer quality is the weakness of Paras milk. As
these 32% consumer encountered quality problem.
B. According to 20% of consumers taste is the weakness of Paras milk.
According to 20% consumer their children don’t like taste of Paras milk.
C. According 28% consumer’s service is major problem. This analysis shows
poor Service of Paras milk and Management.
D. 10% consumer stick with price i.e. price is major weakness of Paras milk.
E. 10%consumers view is that availability is the weakness of Paras milk

4. RANKING OF THE COMPANY
0%
10%
20%
30%
40%
50%
60%
70%
PARAS MOTHER
DAIRY
AMUL OTHERS
A. It is clearly seen from the graph that mother dairy is undisputed
market leader with 61% consumer’s opinion. Mother dairy is retailers
and consumers first choice.
B. Paras stood second with 21% consumer’s opinion. As this improved
from last years data. It indicates a mark of improvement in sales
growth and in goodwill of the company.
C. Amul stood third with 12% consumer’s opinion. Their is decline in
sale of Amul from last year.
D. Other players stood fourth with 6% consumer’s opinion. Their is
sharp fall seen in other category.
NOTE: RANKING IS GIVEN ON THE BASIS OF PERFORMANCE OF
QUALITY, TASTE, PRICE, AVAILABILITY AND SERVICE OF THE
PRODUCT IN THE MARKET.

5. SATISFACTION LEVEL IN RESPECT OF OTHER MILK
PRODUCTS OF PARAS MILK
YES
NO
A. 85% of consumers are satisfied with other milk product of Paras milk.
Satisfaction level is very high because today’s consumer are brand conscious.
if they are using a brand and they like it then they will make a portfolio of
same brand.
B. 15% of customer are not satisfied with other milk product of Paras milk.
This is because of not maintaining quality and taste of product i.e.
fluctuation in taste and quality of product also poor service is important
factor. Consumers are not satisfied with service of paras this also many be
one of the reason.

RETAILING SOLUTION:CASE ON PARAS FOODS LIMITED
PARAS FOODS LIMITED appointed us as summer trainees in the organization for
tenure of two months. The topic assigned to us was "effectiveness of promotional
strategy of poly pack milk”. Work was to distribute discount coupons to consumer and
increase the same. During this period we met nearly 200 consumers and 5 retailers.
During interactive session they came with a valid point that they are not
getting any scheme from company and other companies are giving certain schemes to
them. According to them other companies are giving them scheme so they try to boost the
sale of respective company because they (retailers) are working for benefit. One retailer
told me that “we are here for profit and the company which will give more margin and
scheme the preference for sale will be given to their product. When we kept this matter in
front of company they totally neglected this matter. also one more thing came in front of
us that retailers were not aware about that promotional scheme what we were about to do.
The scheme was explained to them when we were about to start the project. This case
shows total negligence of management. Soon a proper step should be taken to eradicate
the problem to keep its market share up and to maintain the goodwill of company and its
product in the eye of consumers.

SOLUTION TO THE CASE STUDY
Here company is not aware that a simple mistake can ruin their goodwill in market. For
this problem they have to take some steps. Following are some suggested steps
• The company should appoint a customer care executive who will be responsible
for maintaining relations with retailers. He will act as representative of retailers.
• Certain scheme should be give to retailers time to time. Since retailer is on whom
total sale is based. He is final personal who convinced the customer to purchase
the particular brand. If a retailer is not satisfied with your service then from that
day detoration period of company starts and sale starts falling.
• From my study the conclusions was drawn that Paras sale dropped because they
never given preference to retailers. They never made any relation with retailers.
also retailers are not excited in selling paras products
Lastly I would like to recommend that paras should maintain its retailers. if they will
loose a single retailer they will loose nearly 100 consumer. And loosing a consumer is
easy but making a consumer is very difficult.
So time to time paras should provide certain good scheme to retailers and should appoint
customer care executives exclusively for maintain relationship with retailers.

ENHANCING RURAL ENTERPRISE AND GLOBAL REACH THROUGH E-
COMMERCE:CASE OF PARAS DAIRY.COM
Paras,the flagship brand name for a variety of dairy product marketed by VED RAM
AND SONS. Paras dairy is having good command over NCR region which aims to
provide enumerative returns to more than 1.5 million farmers from over many villages.
Apart it serve, the interest of billions of consumers by providing quality products and
value for money. Paras product is extremely visible brand name in the country. It has
strong distribution network in different are as the production as well as demand of the
product has a seasonal variation. Since its inception, the organizations corporate plan has
been growth oriented, consistence with national policy of self sufficiency in milk and
improving the economy and social life of farming community in general and
strengthening the co-operative system in particular. The organization has given a vision
to become the largest food enterprise in the world. So far it has been operating in a
monopolistic market but now will have to face competition. Realizing the threat from
competition well in advance, its management has started taking steps. It will have to
peruse the breakthrough improvement in overall performance of its core business
processes such at first lag dispatch, second lag dispatch and new product development,
e.t.c, by applying the B2B e-commerce. The enterprise wide information technology
infrastructure is already in place. In order to bridge the digital divide, there in an initiative
to create a Top Level Domain (TLD) for co-operatives. It is believed that by developing
"parasdairy.com "umbrella brand web portal, it would be in position to communicate with
all its members and millions of consumers across the world. This is expected to give vital
business advantage and facilitates PARAS brand penetration across the world.
it is interesting to note that in this case the end the customer buying through net is not
getting the benefit of price even through the middlemen is eliminated and customer is
paying the same price as he may have through the products from a friendly neighborhood
store. Only difference is that the buyer can get all products, which he desires, which may
not be available in a store. Very little payment security issues are involved as financial
transactions are done using cash only. The PARAS may think in terms of creating "value
chain management" by having a group of houses as its supply base and thereby
reducing the price to its end consumers. The PARAS web site has been properly firewall
to protect the page from hackers.
the PARAS model is unique in the country as it is one of its kind where the milk travel
from remote village areas to milk processing centers and from there it reaches to house in
big cities and metros throughout the country as well as abroad. There are large numbers
of rural enterprise particularly in handicrafts, handlooms and agribusiness sectors that can
adopt PARAS model of e-commerce to reach out global consumers and hence can give
boost to Indian economy.

SOLUTION TO THE CASE STUDY
the emergence of information and communication technology(ICT)is not only reshaping
the business models but also intensely interlining enterprises across its internal as well as
external value chain. In other words business enterprises are in the process of major
transformation in order to meet the challenges of network economy. It is generally
expected that with e-transformation company should result into greater performance in
terms of sales per employee, profit as well as operating margins, return on assets,
inventory turnover, asset utilizations, working capital turnover, accounts receivable
turnover etc. it has been well established that as the number of nodes in network increases
arithmetically, the value of network increase exponentially. The emerging ICT enabled
management systems, such as ERP, e-business and e-governance are increasingly being
diffused into practice by organizations and government worldwide. these systems and
practices are transforming the industrial age social and economic structure and processes
into that of information age. However it has also been observed that diffusion of these
practices is highly skewed towards developed part of economy and has been a very low
rate of rate of adoption in the developing countries. Apart the adoption of these systems
and practices in the developing countries is in general restricted to the big cities and
multinational corporations. This may lead towards widening the game between have and
have not the internet and ICT enabled management system are going to play a critical
role in bridging the gape between developed and developing economy. Developing
countries can adopt the technological and infrastructure aspects of ICT from the
experience of developed countries, but will have to innovate its own models.

CONCLUSION
It is observed that company's first task is "to create customer”. Earlier Mother Dairy was
pioneer of the market. At present condition, we cannot say Mother Dairy is the
unchallengeable market leader, and fully successful to create customers. Other private
dairies and unorganized sector have made their potential market. They are able to
position themselves successfully in the market by attracting potential.
Customers form an expectation of values and act on it. A buyer's delight is the function of
products perceived performance and customer’s expectations.
Recognizing that high satisfaction leads to customer loyalty quality value and services are
totality of features and characteristics of a product that bear on its ability to satisfy stated
or implied needs. Total quality is the key to value creation and customer delight.
Hence PARAS should take necessary steps to continue bringing quality product. First, it
should participate in formulating strategies and policies designed to help the company
win through total quality excellence. Secondly, and they must deliver marketing quality
along side production quality and value. Each marketing activity marketing research,
advertising, and customer service and so on must be performed to high standards.

LIMITATION OF LEARNING
Every research is conducted under some boundaries and this research is not exception.
Limitation of this project is:
The sample size of 200 consumers is too small to project the opinion of retailers
regarding a particular brand also degree of success of the brand in the market.
There might have been the tendencies among the respondent to amplify their responses
under testing conditions.
Since the study involved sampling method ‘drop in’ or go through errors might have
crept in.
Since the result has been made according to the respondent answer errors might have
occurred and cannot be relied upon blindly.

SWOT ANALYSIS OF PARAS FOODS
STRENGTH
• It has good logistics and channel network
• Well-trained marketing staffs.
• Good quality of milk.
• Abundant availability of raw materials.
• Demand is absolutely optimistic
• Paras has well built image of excellence and innovation supported by Indian diary
technology.
WEAKNESS
• Retailers say they are not satisfied with the schemes.
• The distributors do not give equal importance to all the retailers. They neglect few
retailers.
• Distribution channel is not all over the region.
• Lack of advertisement and promotional programs.
OPPORTUNITIES
• Value addition: there is a phenomenal scope for innovation in product
development, packaging and presentation. Steps can be taken to ensure more
vitamins and protein in the milk.
• Reduction in price for a short span may attract new customers.
THREATS
• Entry of MNC’S is a serious threat to Paras Company.
• The unorganized milk vendors are also a big threat to the company.

BIBLIOGRAPHY
MAGAZINE:
 Business today
 Business India
NEWS PAPER:
 Economics times
 Business line
 Business standard
 The Hindustan times
BOOKS:
 Marketing research by Thomas C.Kinnear/James R.Talylor
 Marketing management by Philip Kotler
 Consumer behavior by Gupta and Pal
WEBSITE:
 www.amul.com
 www.parasdairy.com
 www.motherdairy.com
 www.economicstimes.com
 www.business-standard.com
 www.google.co.in
 www.thehindubusinessline.com
 www.indiandiary.com
 www.magindia.com

BENEFITS OF THE TRAINING
As a part of my curriculum I have undergone a practical training to get better exposure to
the market. Academics is important but a practical knowledge cannot be founding texts.
This training has imparted valuable knowledge and skills, which is an addition to the
balanced development of my personality. I was able to apply all the addition to the
marketing taught in the classroom when given the opportunity.
 During the training I learned the practical way of conducting a research and how
they are implemented i.e. preparation of questionnaire, testing it, collecting the
data analysis techniques.
 I gained the experience of set environment of corporate offices and how things
move in corporate offices.
 I acquired the minute details of milk business, brands, quality, prices,
specifications and gained a good knowledge of liquid milk industry.

RECOMMENDATION
PARAS FOODS LIMITED is doing quiet good in Delhi as compared to its performance
in NCR (National Capital Region).Total Delhi market is seen to be favorable for PARAS
FOOD but little bit hard work is required for NCR. But it is also considered that if
PARAS is not grasping the opportunity which is present in the market then they will
loose their market share slowly-slowly. If they loose the Delhi market then they will
loose due to some identified problems. During our 8 weeks training we boosted the sale
of Paras by introducing a scheme i.e. distributing Rs. 2 discount coupon on Paras full
cream milk. This scheme was valid till one month. During that month sale boosted but in
next month again sale came to same position. During my 8 weeks scanning of milk
market and after analysis of total facts I would like to put forward few recommendations
to the company.
 Paras have failed to increase sale of its toned and double toned milk. It should
concentrate more on toned and double toned milk. The company should come up
with more awareness programs.
 Paras should setup ATM (Any Time milk) at favorable locations i.e. near by
households, near by students hostel and near by factory which is running in night
shift also.
 Paras should setup their own retailing shop at prime location of the city and in
that shop they should keep their own product and they should establish a mini
cafeteria in that respective shop.
 As Paras is having good market in NCR so they should advertise or promote their
product through Radio mirchi, 98.5 Fm, Red Fm etc. These media are cheap and
having wide coverage.
 The awareness of milk is low when compared to that of mother dairy, so the
company should come up with more canopies and more banners and hoardings.
 Paras should provide special attention to their retailers. Time to time they should
be given some scheme. If they will be boosted then sale also will be boosted.
 Paras should take customers feedback time to time. This can be done by selecting
some customer and taking feedback. this could be beneficial for PARAS
FOODS

PARAS FOODS CYBER SHOP
Paras foods are providing Cyber Shopping to its customer. Through Cyber shopping a
customer can choose his product from portfolio of products through internet. As they will
choose their product amount will be indicated. Lastly when it’s over then total amount
will be indicated. Next step is to provide address and phone number accordingly they can
deliver the item and can collect the money. Cyber shopping provided a good Edge for
growth. In future this will help in brand positioning of new and older products. Very less
number of players is providing cyber shopping in this sector. Paras should take it as a
benchmark and carry on its growth. In future this cyber shop will help in Brand
positioning and Brand building of the new and older products.
But this cyber shopping must be come in light i.e. it should be promoted among
consumers and provogue them to buy Paras product through Cyber shopping. Once
customer comes to know about Cyber shopping them once they will try and if they find
better service then they will continue. In future Cyber shopping is going to be a boon for
an company. in coming future due to hectic schedule people will not able to purchase
good by going to market simply they will order the goods through cyber shop from
anywhere. This is and advantage era and opportunity is striking at the door only has to
identify and grasp it.
Cyber shopping introduced is good move by Paras. Only they have to concentrate on it
and maintain the cyber shop for future. Because in coming future they will need cyber
shop for Brand positioning and Brand building.
SAMPLE VIEW OF CYBER SHOPPING FORM IS IN NEXT PAGE………..

CHAPTER FOUR-
FUTURE EVENTS OF
PARAS FOODS

CHAPTER FIVE-
ANALYSIS OF INITIAL
QUESTIONNAIRE

CHAPTER SIX-
ANALYSIS OF FEEDBACK
QUESTIONNAIRE

CHAPTER NINE-
BENEFITS OF TRAINING

CHAPTER TEN-
LIMITATION OF THE
PROJECT

CHAPTER SEVEN-
CASE STUDY ON PARAS
FOODS

4. INCOME LEVEL OF DIFFERET CONSUMERS
0%
5%
10%
15%
20%
25%
30%
35%
40%
UPTO 10000 10000-25000 ABOVE
25000
D. It is clear from analysis graph that income level up 10000 is very high
i.e. 38% means consumer is very conscious about his money and
purchasing power.
E. Below that income level of 10000-25000 is 34%.This segment
consumer has good purchasing power but to a certain limit.
F. Lastly the income level of above 25000 is very less i.e. 28% only. This
segment is very less and they can spend more than other two
segments.

5. PER LITRE CONSUMPTION OF POLY PACK MILK BY
CONSUMERS
30%
31%
32%
33%
34%
35%
36%
37%
0.5-1 LITRE 1-1.5 LITRE >2 LITRE
D. Their are only 32% consumers who consume 0.5-1 litre of poly pack milk
daily reasons are less number of family member or lower income group.
E. Now coming to second step it is clear from graph that 36% of milk
consumer consume 1-1.5 litre of milk per day. This is due to medium family
member or good income level.
F. 32% of consumer consume >2 litre of milk per day. Analysis say that they
require >2 litre milk due to many reasons i.e. number of children, big
family, excellent income level.

6. MOST PREFFERED BRAND
0%
10%
20%
30%
40%
50%
60%
PARAS AMUL MOTHER
DAIRY
OTHERS
E. It is clearly seen from the graph that mother dairy is the undisputed
market leader.retailes are happy to keep mother dairy and it’s no.1 choice
of consumers.
F. Paras stood second with 23% consumers.paras are ranked second by
consumers.
G. Amul stood second with 16%.only 16% of consumers prefer to consumer
and retailers also show keen interest in keeping it.
H. Others players are having very less market i.e of 8% only.

4. SATISFACTIONAL LEVEL
YES
NO
YES
NO
C. 92% of consumers were satisfied with their existing brand. Analysis shows
that brand loyalty exists in customers also these consumers are having trust
on their brands.
D. 8% of consumers are not satisfied with their existing brand due to many
reasons i.e.
1. Poor service provided by retailers.
2. Quality and taste problem.

5. OTHER DAIRY PRODUCTS CONSUME BY CONSUMERS
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
PANEER DAHI LASSI ANY
OTHER
E. In other milk product segment 32% of consumer prefer to buy
paneer.due to brand loyalty.
F. 41% of consumers prefer to buy their brand of Dahi and rests of
consumer prefer to consume home made dahi.
G. Only 17% of consumer use to buy lassi.but it’s fluctuating in summer
season its sale touches sky but in off season it remains at stagnant
position. Other consumers prefer to buy fresh lassi i.e. made in front of
them with pure DahI.
H. 10% of consumers consume other products like butter, chease e.t.c.

1. MOST PREFERED BRAND
0%
10%
20%
30%
40%
50%
60%
PARAS MOTHER
DAIRY
AMUL OTHERS
E. After distributing Rs 2 discount coupon on Paras full cream milk the Paras
sale increased from 20% to 26%.means there was increase of 6%.this was a
strategy to increase the sale.
F. Mother dairy’s sale was not effected it remained at 53%.
G. Amuls sale decreased from 16% to 15%.Amul customer really given
preference to Paras and according to analysis from declined 1% customer
of Amul will stick with Paras .
H. Other player’s sale declined from 8% to 7%.and according to analysis the
declined 1% customer will stick to Paras.

2. STRENGTH OF PARAS MILK
0%
5%
10%
15%
20%
25%
30%
35%
Q
U
A
LITY
TA
S
TE
P
R
IC
EA
V
A
ILA
B
ILITY
S
E
R
V
IC
E
F. It is clear from the graph that quality is the major strength of Paras with
29%.29% consumer preferred its strength as its quality.
G. 28% consumer preferred taste as the major strength of Paras milk. As we
can see customer preference is different at different level.
H. 16% of consumers preferred price as a strength of Paras milk.
I. 15% of consumer preferred availability as a strength of Paras milk.
J. 112% consumer preferred service as a strength of Paras milk. This
percentage makes clear that service provided by Paras milk is poor. As
today’s business is standing only on the basis of services they are providing to
their customers. Paras should improve the service provided to customers.

3. WEAKNESS OF PARAS MILK
0%
5%
10%
15%
20%
25%
30%
35%
Q
U
A
LITY
TA
S
TE
P
R
IC
EA
V
A
ILA
B
ILITY
S
E
R
V
IC
E
F. According to 32% of consumer quality is the weakness of Paras milk. As
these 32% consumer encountered quality problem.
G. According to 20% of consumers taste is the weakness of Paras milk.
According to 20% consumer their children don’t like taste of Paras milk.
H. According 28% consumer’s service is major problem. This analysis shows
poor Service of Paras milk and Management.
I. 10% consumer stick with price i.e. price is major weakness of Paras milk.
J. 10%consumers view is that availability is the weakness of Paras milk

4. RANKING OF THE COMPANY
0%
10%
20%
30%
40%
50%
60%
70%
PARAS MOTHER
DAIRY
AMUL OTHERS
E. It is clearly seen from the graph that mother dairy is undisputed
market leader with 61% consumer’s opinion. Mother dairy is retailers
and consumers first choice.
F. Paras stood second with 21% consumer’s opinion. As this improved
from last years data. It indicates a mark of improvement in sales
growth and in goodwill of the company.
G. Amul stood third with 12% consumer’s opinion. Their is decline in
sale of Amul from last year.
H. Other players stood fourth with 6% consumer’s opinion. Their is
sharp fall seen in other category.
NOTE: RANKING IS GIVEN ON THE BASIS OF PERFORMANCE OF
QUALITY, TASTE, PRICE, AVAILABILITY AND SERVICE OF THE
PRODUCT IN THE MARKET.

5. SATISFACTION LEVEL IN RESPECT OF OTHER MILK
PRODUCTS OF PARAS MILK
YES
NO
C. 85% of consumers are satisfied with other milk product of Paras milk.
Satisfaction level is very high because today’s consumer are brand conscious.
if they are using a brand and they like it then they will make a portfolio of
same brand.
D. 15% of customer are not satisfied with other milk product of Paras milk.
This is because of not maintaining quality and taste of product i.e.
fluctuation in taste and quality of product also poor service is important
factor. Consumers are not satisfied with service of paras this also many be
one of the reason.

Competitive Analysis of Paras Milk and Other Brands in Central Delhi

Competitive Analysis of Paras Milk and Other Brands in Central Delhi

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