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A
Summer Internship Project Report
On
“PRIDE OF COWS”
Submitted in the partial fulfillment of the
requirements for
Post Graduate Diploma in Management - PGDM
SUBMITTED BY
Name: Prachi Pawaiya
Roll No: 1519
Batch: 2015-17
UNDER GUIDANCE OF
Prof. Sushant Nanda
Universal Business School,
Mumbai (Karjat), 410201
DECLARATION
This is to declare that I Prachi Pawaiya student of Universal Business School, Mumbai
(Karjat), PGDM batch 2015-2017, has given original data and information to the best of my
knowledge in the project report titled Pride of Cows is a record of independent work carried out
by me under the guidance and supervision of the Prof. Sushant Nanda towards the partial fulfilment
of requirement for the PGDM course.
I also agree in principal not to share the vital information with any other person outside the
organization and that I have not submitted it for any award or any other title, degree or diploma.
Date: 24/08/2016
Place: Mumbai (Karjat)
Name: Prachi Pawaiya
Roll No: 1519
Specialization: Marketing
CERTIFICATE
This is to certify that the project entitled “PRIDE OF COWS”, submitted to Universal Business
School, Mumbai (Karjat) in the partial fulfilment of the requirements for the award of the Post
Graduate Diploma in Management (PGDM) embodies the results of bonafide project work carried
out by Prachi Pawaiya under my guidance and supervision.
To the best of my knowledge the results embodied in this project have not been submitted to any
other university or institute for the award of Degree or Diploma. The assistance and help received
during the course of this investigation has been duly acknowledged.
Project Guide: Prof. Sushant Nanda Program Director (PGDM): Prof. Vijay Tandon
Date: 24/08/2016
Place: Mumbai (Karjat)
ACKNOWLEDGEMENT
It gives me immense pleasure to present this Concurrent Project Report. However, it would not
have been possible without help and support of all the team members of Parag Milk Products
I would like to thank Mention project guide names for guiding me in my tenure of internship on
Pride Of Cows Without their support and guidance I wouldn’t have come so far to prepare this
report.
I would like to express my thankfulness to Universal Business School, who has given me great
opportunity to work on this project.
I am also grateful to my loving parents and my kind friends whose prayers, affection and support
are always a source of encouragement. Their suggestions and supply of information were really
very valuable and helpful to me. Their continuous encouragement and support helped me for
completing this project successfully
Prachi Pawaiya
Roll No. 1519
Specialization: Marketing
Universal Business School, Mumbai (Karjat)
EXECUTIVE SUMMARY
Parag Milk Foods Pvt Ltd, company’s attempt to inform, persuade and remind customers – directly
about their premium product Pride of Cows was the Internship objective to be carried out in the
45 days tenure. As the product is not displayed on shelf at retail outlets and positioned as Farm-
to-Home milk, various marketing communication modes were initiated and also encouraged by
the management to create positive brand equity by initially establishing a dialogue and building
relationship with the target audience. Intercept as retail, society, gyms and events were preferred
and tapped to sample the milk as a sales promotion incentive.
To start with briefing and training was exercised in areas of product and sales department.
Customer information was a challenging objective to achieve through sampling, considering on
the location, time and interest of the other party. This information was used to obtain feedback
about the sample product and they were briefed about the enrolment details. Positive response
were received through feedback calls and over the counter spot enrolments which was encouraging
This motivated to branch out to other marketing activity which was backed by the manager and
team. Significant insights were distinguished and identified which helped to plan for further course
of action in creating productive results.
Our team’s exclusive and consistent performance had resulted in achieving the third highest sales
figure of 231 amongst 12 teams from Mumbai. Also 32 churn customers were won back with great
efforts that have initially discontinued pride of cow’s service for various reasons. Gaining hands
on experience with a newly launched product peeking through the introductory stage and
contributing to its marketing has cultivated a sense of achievement. Also taking surveys of
premium segment of customers helped us gather valuable insights which further helped us to
device profitable marketing strategies. The data obtained through approximate 1500 customers
was followed by data analysis to identify trends and other consumer behavioural patterns. Team
also undertook comparative analysis to find out further scope of improvement to the Brand.
PART-A
INDUSTRY PROFILE
The highest milk producer in the entire globe – India boasts of this status. India is otherwise known
as the global dairy industry, with opportunities galore to the entrepreneurs globally. Anyone might
want to capitalize on the largest and fastest growing milk and milk products market. The dairy
industry in India has been witnessing rapid growth. The liberalized economy provides more
opportunities for MNCs and foreign investors to release the full potential of this industry.
India ranks first in the world in milk production, which has gone up from 53.9 million tonnes in
1990- 1991 to 127.9 million tonnes in 2012-13. The per capita availability of milk has also
increased from 176 grams per day in 1990’s to 290 grams per day in 2012-13. This is comparable
with the world per capita availability of milk at 289.31 grams per day for 2012. This represents
sustained growth in the availability of milk and milk products for the growing population of the
country, apart from being an important secondary source of income for rural families.
In India dairy business has been practiced as rural cottage industry over the years. Semi-
commercial dairy started with the establishment of military dairy farms and co-operative milk
unions throughout the country towards the end of the 19th century. Since Independence this
Industry has made rapid progress.
A large number of modern milk and milk product factories have since been established. The
organized dairies in India have been successfully engaged in the routine commercial production
of pasteurized bottled milk for Indian dairy products. The growth of Indian Dairy Industry during
the last three decades has been impressive, at more than 5% per annum; and in the 90's the country
has emerged as the largest producer of milk.
This is not a small achievement when we consider the fact that dairying in India is largely stringent
that farmers in general keep dairy animals in proportion to their free crop and also are available
for family labor with little or no purchased inputs and a minimum of marketed outputs. The
existence of restrictive trade policy milk in the Diary Industry and the emergence of Amul type
cooperatives have changed the dairy farming practices in the country.
Sources: Department of Animal Husbandry,Dairying & Fisheries, Ministry of Agriculture, Government of India, New
Delhi.
Farmers have gained the favorable price for their milk and for their production which was
essentially a self-reliant one is which are now being transformed into a commercial proposition.
In India Milk production is dominated by small and marginal land-holding farmers. And as the
crop production on 78% of the agricultural land still depends on rain, which is prone to both
drought and floods, rendering agricultural income is very much uncertain for most of the farmers.
Dairying, as a subsidiary source of income and occupation, is real relief to most of the farmers in
the society.
Usually one or two milk animals enable the farmers to generate sufficient income to break the
vicious subsistence agricultural-debt cycle. India in the early 1950's was commercially importing
around 55000 tons of milk powder annually to meet the urban milk demand. Most of the significant
developments in dairying have taken place in India in this century only. The size of Indian dairy
industry in both organized and unorganized sectors is expected to double to $140 billion by 2020,
on the back of growing demand and rising disposable income.
The Indian dairy industry, currently pegged at $70 billion (organized and unorganized), is expected
to double by 2020."On the back of a rise in health awareness, disposable income and strong
demand for dairy products, the Indian dairy industry is all set to experience high growth rates in
the next 5-6 years." the report said.
While the dairy industry is growing at a compounded annual growth rate (CAGR) of 15-17%, the
value-added products alone are growing way beyond 24%. Milk is the country's biggest
agricultural produce, contributing 22% to agricultural GDP. India overtook the US in 1998 to
become the world's leading milk producer, accounting for over 15% of the global output. The
industry, which had been a national heritage, is now re-emerging and catching the eye of investors
due to its growth potential.
Growth in financials of existing domestic players, diversification into dairy sector by other
companies, surge in private equity deals, entry of foreign firms in the segment are some of the
broad indications that India's organized dairy industry will remain on growth path at least till 2020,
the report said. The milk production alone is expected to cross 200 million tons by 2016 from the
current 125 million tons. The dairy sector has been liberalized in a phased manner since 1991.
Many private players entered the market to set up processing facilities in areas with surplus milk.
MILK CONSUMPTION & PREFERENCE
There are regional disparities in production and consumption also. The per capita availability in
the north is 278gm, west 174gm, south 148gm and in the east only 93gm 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 butter, cheese, ghee, paneer (cottage cheese), khoya,
curd malai,etc. Only 7 percent 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%.
Source: Parag milk website and broachers.
It is estimated that around 20% of the total milk produced in the country is consumed at
producer-house hold 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.
The preferred dairy animal’s milk 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.8000 cores. 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.
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
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.
Milk Production
Surplus Milk Sold Out
68%
Organised Sector
17%.
Private Dairies
(National)
Parag Milk FoodsPvt
Ltd
Dynamix
D'letca
Britannia
Private Dairies
(International)
Danone
Nestle
Mother Dairy
Co-operative
societies.
AMUL
Government.
Aarey
Worli Dairy
Kurla Dairy
Unorganised Sector
51%.
Milk Consumed
wiithin 31%
STRUCTURE OF DAIRY INDUSTRY IN INDIA
INDIA
COMPANY OVERVIEW
COMPANY SNAPSHOT
NAME PARAG MILK FOODS PRIVATE LIMITED
FOUNDED 1992
FINANCIAL TYPE PRIVATE FIRM
SECTOR DAIRY PRODUCTS
INDUSTRY MANUFACTURING, EXPORTING, RETAIL
BRANDS GOWARDHAN, GO,TOPP UP,PRIDE OF COWS
NET WORTH 2500cr
TURN OVER 1500cr
MARKETING
OFFICE
20TH FLOOR, NIRMAL BUILDING, NEAR INOX,
NARIMAN POINT, MUMBAI - 400 021
TEL: 022 – 22844763
MANUFACTURING
UNIT
AWASARI PHATA, MANCHAR, PUNE
MAHARASHTRA,410503 TEL: +91-2133 224763
KEY EXECUTIVE DEVENDRA SHAH, MAHESH ISRANI, RAHUL AKKARA
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 gulab jamun 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 Pvt 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 Manchar
in 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.
 Bhagyalaxmi Dairy Farm
It is spread over an area of 35 acres and boasts of being India's largest cow farm, housing up
to 2500 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 of our
products 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.
 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 our products,
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.
MISSION & VISION
VISION –
We strive to optimize the potential of milk across a host of exciting dairy products to fill each
day with imaginative and healthy options for our consumers. We believe that milk in all its
wonderful forms is one of nature’s most nutritious foods and anyone who consumes milk
products daily, benefits from vital nutrients that the body needs. Fulfilling dietary nutritional
requirements is a source of great joy and creativity for us.
A bigger company also has larger responsibilities. While India is the largest producer of milk
in the world, and the commodity has become an important source of income for 70m rural
households, the output per animal is dismal. A key area of focus for us is to help farmers and
milk producers to boost animal productivity. The enhanced participation and involvement of
the private sector is key to further agricultural marketing practices and to make milk and its
derivatives more accessible and affordable to India. In this regard, we deploy state- of- the- art
technology to enhance productivity.
We also seek to drive innovation in milk and milk products through our well-diversified
portfolio of brands that deliver dairy products to international standards of quality. To add
value to people’s lives every day. We at Parag live and breathe our corporate slogan of ’Ideas
for a new day’.
MISSION-
 Our Consumers
Should be able to trust our brands. This is why food quality is a fundamental
requirement for Parag. We make every effort to ensure that our processes are safe, and
that high quality standards are maintained throughout the supply chain.
 Dairy innovation
Focus on dairy innovation, enables us to produce an array of products that make milk
moments nutritious, healthy, and enjoyable and we market them under well targeted
portfolio of brands.
 Partnership with the dairy farmers
We are working with dairy farmers to enrich their lives, and set new standards for
sustainable dairy production. We want to use our resources in a sustainable manner. By
having a long term environmental strategy we can help make this happen.
 Good citizenship
We want to influence the development of society and set an example through our best
practices. To make quality milk and world class dairy products accessible to the
masses. As a large private sector dairy player, we have the opportunity to do so.
 Building long-term relationship with local communities
We strive to uphold respectful and constructive community relations, and contribute to
the development of communities by building long-term relationships with people,
businesses and organisations.
PRODUCTS AND SERVICES
Source: Company profile site and broachers
The company is well known in industry for its milk and milk products. They sale in all states of
India, but originally there industry and plant is in Mumbai. Parag Milk Foods has a vast range of
products which includes Cheeses (raw as well as processed in various forms & flavours), Butter,
UHT Milk, Paneer, Dahi, Yogurt, Ghee, Skimmed milk powder, whole milk powder, proprietary
foods like gulab jamun mix powder & dairy whitener under the brand names of ‘Go’ and
‘Gowardhan’ all made from 100% fresh cow’s milk.
Apart from its pan-India distribution network covering retail outlets and modern format stores, the
Pune-based company supplies its products like cheese, butter, ghee and milk powder to reputed
hotels, restaurants, institutions and caterers. It is exclusive supplier of dairy products to major
Institutions like Barista, Baskin Robins, Sodexo and Café Coffee Day, major hotel chains like Taj
Group as well as to all major Pizza chains like Pizza Hut, Dominos Pizza, US Pizza, Papa John’s,
Sbarro, Uncle Sams Pizza, Chilliz, Taco Bell, etc. Parag exports its products like Cheese, Ghee,
milk powders, butter & AMF to about 27 countries in the USA, South East Asia, Africa and the
Middle East. The company has established its consumer products distribution network in USA,
Middle East, Singapore & Hong Kong.
Parag Milk plans to go national by launching innovative products in the market. It is having one
more plant in Palamner, on the outskirt of Bangalore and planning to add 2-3 more in coming
years. The company aims to focus on establishing a strong foot-hold with major cheese consuming
institutions and pizza chains. It is having Cheese plant having capacity 40MT per day & plans to
expand it to 100MT per day. Besides, it also plans to establish a distribution network for fresh milk
products. As a strategy, we take care of quality and taste of the product.
BIRTH OF PRIDE OF COWS
Which part of the cow’s milk we drink doesn’t come from a cow? Could it be the blotting paper,
the sodium hydroxide, the borax, the vegetable fat, or all of the above? On an average middle class
household, 9 out of 10 houses consume milk from packed or raw milk from the local dairy vendor,
of which 6 out this 9 when boiled forms foam like in a Nirma commercial.
The Consumer Guidance Society of India initiate and encourage us how to test cow’s milk at home
for sodium carbonate, hydrogen peroxide, formalin, urea, pulverized soap, detergents, benzoic and
salicylic acid as well for safer-sounding like water, skimmed milk powder, salt, cane sugar,
glucose, starch, and buffalo milk. Some of these unwelcome add-ons reduce or delay spoilage by
making the milk alkaline, some increase the SNF(Solids Not Fat, including protein, carbohydrates,
vitamins and minerals – but now synonymous with density) value of the milk making it appear
thicker, and some raise the lactometer reading, which has been reduced by the addition of water to
milk. Some of these merely reduce the nutritive value of the milk, and some can carry disease
(water), while others can damage organs, and are known carcinogens (formaldehyde).
Every few months a new milk adulteration racket is busted somewhere in the city. Based on result
of a recent survey, 65 per cent of the milk in Maharashtra, and that just under half of the milk in
Mumbai are tainted. In October of last to last year, eight people were arrested for selling
adulterated milk repackaged in packets of popular brands. The milk was mixed with water that
was not fit to drink. Post this repeated encounters in different stations, the Supreme Court of India
encouraged state governments to make the production and marketing of adulterated milk an
offence punishable by life imprisonment.
Adulteration is performed at every stage: before milking, during milking and after milking.
Because most of the milk in and around Mumbai comes from cooperatives made up of small dairy
farmers, it isn’t as easy to control what goes into the cow’s body before it is milked, whether it is
poor quality (pesticide- or fertilizer-laden) feed or banned hormones that are said to cause anything
from early puberty in girls to breast development in men. A lot of the milking is done by hand and
in unhygienic surroundings, which can introduce bacteria and other contaminants to the milk.
Given these circumstances, Mr. Devendra Shah, Chairman and Managing Director of Parag Milk
Foods Pvt Ltd had identified a business opportunity, and started offering premium milk to Mumbai
and Pune citizens. Consumers were suffering with this mal practices and poor value for money
service, the management had thought of converting this cons to its strength and introduced an
untouched and fully mechanized Farm-to Home milk service from in house cows. Thus, was the
birth of Pride of Cows milk!
Poc 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. The Pride of Cows brand is a reflection of
passion for milk. Milk captures the imagination, sparks interest and ideas, adds color and flavor,
and makes feel fulfilled and happy. The significant part played by milk, strengthening and
protecting the body and mind to live a fuller, more complete life each day. The cow’s milk at its
best represents the pinnacle of nutrition and health.
The Gowardhan factory was started in the year 1992. It is located in the milk belt of Manchar on
the Mumbai Nashik highway. Unit 1, processes raw milk into processed pouch milk, curd, paneer,
ghee, and shrikhand. The huge investment in infrastructure has enabled the unit to process up to
almost 12 lakh litres of milk daily. The factory has employed around 600 fixed daily wage workers.
Thus, being the source of income for farmers in the neighboring towns and villages.
Poc have a high standard of hygiene and quality control, Pride of Cow is the best cow milk in
every way- bottled and delivered fresh, chilled to 4degree Celsius, to your doorstep through a
process that is completely mechanized from starts to finish. This ensures that you reap all the
benefits of milk. Pride of cow milk is instantly pasteurized, chilled and packaged in bottles and
sent on its way to consumers, in a process that mechanized, maintaining absolute purity and
keeping the taste, structure and nutrients of the milk intact. It’s everything that milk should be.
Pride of cow has lots of benefits like it is untouched by human hand. As the milk is tested at every
stage of process by the help of mechanized solution it has low bacterial count. Poc have fully
automated process from milking to processing, pasteurizing, and to filling the milk into tamper
proof bottles. There are no additives or preservatives in the whole milking process. This is why
poc can firmly positioned about their quality of product and the unique concept.
Milk is homogenized and pasteurized before cooling that help to kill the bacterial content of milk.
Therefore, the bacterial count is so low in this product. After this processing over milk, the milk
is poured into the tamper proof bottles and refreeze it at 4 degree Celsius temperature maintain till
the last leg of delivery. Tamper proof bottles are convenient to deliver and not easily broken able.
This is how the pride of cow manages to deliver the milk from farm to home.
All the milking process is carried out in the early morning around 3am and then it delivered to the
entire Mumbai and Pune region. From where they head towards their decided destination to each
depo and after this all the delivery boys delivered to each customer’s house within six to nine in
the morning.
COMPETITORS INFORMATION
Pride of Cow is there in a market from last six years and it’s a new concept for the company and
also for the market. After pride of cow there are other brands that are emerged with the similar
concept. This may turn as rivalry market for the brand poc. So it’s necessary to keep a check on
the actions of other competitors, which may try to capture pride of cow market.
The brands like Sarda farms which is a strong competitor of poc as they have a share the same
concept but Sarda’s logistics is much stronger compare to the poc. Competition is increasing
rapidly as this is the profitable sector for the companies so there are new brands like lalgoon,
Sarda farms, BlissFresh, TrueSip. So all this are the emerging competition for the brand poc.
Poc is a popular brand among most of the celebrities and in other premium segment but
competitors are giving them the toughest competition on basis of pricing and distribution. If Pride
of cow is more marketed into the niche market with the motive of spreading awareness for their
customers would be beneficial as competitors have introduced with verities of milk for the health
conscious people like tonned milk, skimmed milk etc.
Customers have preference as they are becoming more health conscious and some are quitting
milk and its products. It’s a very difficult task to keep customer engage and loyal for the brand.
Identifying the potential of this market and the given circumstances, a few new players have
entered providing the same service, which is listed below:
LALGOON MILK FARMS
“LALGOON” promotes hygienically produced raw milk because the founder of Lalgoon believes
heavy pasteurisation destroys beneficial bacteria, enzymes and natural vitamins. Lalgoon’s raw
milk, which is the only kind they sell, has upwards of 3.8 per cent fat. The milk has the faint
aroma of stables and smells and tastes closest to what we drank as children.
Established -2010
Price – 65 Rs/litre
Office - Bandra
Presence - Mumbai Suburban
CUSTOMER BASE: < 200
Pros:
Entrepreneurial Business
Stronger B2B service
Management Focus
Schemes & Discounts
Cons:
Poached Milk
Less customer base
Lalgoon is a brand that is new into the market with a price lower than Poc; they are targeting
the premium segments of Mumbai. Compare to Poc they have a very less customer base in market
but they are providing discounts, scheme to attract the customer which a threat to the
POC. POC follows the subscription model without any discounts and schemes for customers.
SARDA FARM
Established-2012
Office-Nasik
Presence- Mumbai and Pune
Price-80Rs/ litre
PROS:
Variants of Milk-Raw Milk, Pasteurized skimmed milk, Pasteurized Milk
Glass Bottle
Discounts and schemes
Strong logistics
Good customer relations
CONS:
Limited area coverage
Sarda Farms is a family-run milk farm in Nashik and a strong competitor of Poc as they came up
with the same concept from “Farm-to-Home” concept. They have low pricing strategy compare
to Poc to capture the market and Poc’s customer base. To attract more customers they also provide
discounts and scheme if the plan is for a year. They pay at once for a year and so on. They also
provide verities of milk to reach to customer as much as possible. Nowadays’ people have
knowledge and they keep researching for the brand and its benefits. Some are health conscious
for whom they introduced skimmed milk and tonned milk. So they can target all age groups, they
are giving the tough competition to Poc.
BLISS FRESH
Established-2013
Office- Shahapur
Presence- Mumbai
Price-30Rs/ litre
PROS:
Variants of Milk-Raw Milk, Pasteurized skimmed milk, Pasteurized Milk
Physical appearances
Strong logistics
Good customer relations
CONS:
Limited area coverage
Tetra pack packaging
The only one on the list with a fully organic label, Bliss Fresh was started by a group of friends
with a background in banking, with Rajesh Singh at the helm. Bliss Fresh, which was launched
in 2013, is in the process of being certified as an organic farm by the Bureau Veritas Group.
Their farm in Shahapur has 400 free-range Holstein Friesian cows that feed on green grass fodder
and mixed grain grown on site to ensure that it’s free of pesticides, fertilisers and other chemicals.
Bliss Fresh’s pasteurised milk has 3.5 per cent fat. It has a slightly thinner texture than the other
brands and a pleasantly clean flavour. This is available for Rs30 for a half-litre gable top
carton. This product is also available at Nature’s Basket outlets. This product is available at retail
store that help it to draw many more customers as physical appearances help it to reach to
customers mind.
TRUESIP
PROS:
Variants of Milk-Raw Milk
Physical appearances
CONS:
Limited area coverage
Tetra pack packaging
Truesip is another brand which has the similar concept like Poc. This brand is also provide milk
in a bottle and not so familiar to customers. This brand is a newcomer so it will not be that effective
competitor.
PART B
WORK FLOW MODEL
IDENTIFYING TARGETBUILDING/RETAIL
STORE
SEEK PERMISSION
FIX ON DATE& TIME
PERSONAL SELLING
DOOR TO DOOR/
DATA ENTRIES
PROSPECT
SPOT
CONVERSION
ORDER GENERATION
SERVICE & PRODUCT FEEDBACK
REFERAL
SWOT ANALYSIS
SWOT Analysis is a method where the organization tries to picturize the scenario of pride of
cow brand to understand its strength, weakness, opportunity, threats with the respect to the
market. An easy tool to understand and analyses the purpose and actions that to be performed
according to the market scenario. These strategies are necessary to formulate for the purpose of
marketing, sales, and positioning for the product. Therefore, pride of cow has these strengths
where they have a good value proposition; there is no third party intervention in the entire
process of POC. Similarly, weakness is poor logistics, low sales force team and opportunity like
a new market may attract new companies to enter easily.
STRENGHTS
VALUE PROPOSITION
NO3RD PARTY INTERVENTION
RESEGMENTED MARKET
ECONOMICSOF SCALE
VISIONARYTOPMANAGEMENT
PREMIUM SINGLE BREED COWMILK
WEAKNESS
LOW SALES FORCE TEAM
POORPRODUCT DELIVERY
LOW TOUCH POINTS
LOW BRANDEQUITY
LOW CUSTOMER INTERACTION
LOW PRODUCT AWARENESS
OPPURTUNITY
MARKET DEVELOPMENT
MARKET PENETRATION
AGGRESIVEPUBLIC RELATION
CAMPAIGN
B2B SERVICE
THREATS
NEW PLAYER
PREMIUM SUBSTITUTE &
ALTERNATIVES
SWOT
ANALYSIS
RESEARCH AND ANALYSIS
INTRODUCTION
The project was defined as “Creating Awareness for Pride of Cows in Mumbai”. Pride of
cows is a first of it’s kind premium brand of milk which have a unique concept of providing
milk from Farm to Home. Pride of Cows is a six years old brand but not very known to all,
as the customer base was developed only through subscription based model. The project
was all about creating awareness among people by adopting direct selling promotional
activities within 45 days.
OBJECTIVE OF THE PROJECT
 To create product awareness
 To enhance brand visibility through sampling of the product
 To study the impact of various promotional methods
 To enhance business profitability by registering profitable customer
 To undertake surveys and get meaningful insights to device marketing strategies
 To increase understanding of consumer buying behaviour
 To contribute towards development of POC app.
RESEARCH METHODOLOGY
Types of Research- Exploratory research used because the motive is to understand the marketing
activities that can be adapted creatively and formulate new strategies. So research will be more
exploring to get the insight of customer and to understand market broadly.
Sampling Methodand Sample- Snowball sampling method is been used as customers are chained
through the reference. Word of mouth is mostly used for marketing, with a sample size of 100. So
the survey is purely on the existing customer to understand their preference and choices.
SOURCES OF DATA
Source of primary data-
1. Survey
2. Personal interview and telephonic interviews
Sources of secondary data
1. Pride of cow official website
2. Research and markets articles
3. Milkproduction.com
DATA COLLECTION INSTRUMENTS
Market research is done through filing questionnaire by existing customers giving insights
about the product’s quality, timely delivery
POPULATION
1. Churn customers
2. Active customers
3. Newly acquired customers after sampling and reference
DATA COLLECTION & ANALYSIS
PROJECT REPORT
The project was aimed at gathering data from the existing customers through survey and then
further analysis of that data to identify trends and formulate marketing strategies for the same.
Another important reason for conducting surveys individually was to generate quality reference
from the existing clients. Word of mouth is primary marketing strategy adopted my pride of cows
and hence due to trust factor of their relatives and friends lead generation mechanism was fairly
easy. After generating references from the existing clients the following procedure was to
convince and convert into sales.
Next important aspect of the project was to identify churn customer who have left pride of cows
and conduct surveys to identify the reasons behind discontinuing the service & persuading them
to join back the service. Another aspect of the project was to device marketing strategies by
identifying target segments and locations where promotional activities can be conducted like
premium societies, gymnasium, parks, retail outlets etc. for further generating leads and extending
the scope of client base in untapped market.
Ville Parle(east)
, 114, 6%
Santa Cruz
(E/W), 514, 26%
Khar (E/W),
360, 18%
Bandra (E/W) ,
761, 38%
Andheri (E.),
232, 12%
Ville Parle (east)
Santa Cruz (E/W)
Khar (E/W)
Bandra (E/W)
Andheri (E.)
Pride of cow customer base in Mumbai region
OVERVIEW OF SALES GENERATED
References 55
Society activity 36
retailer activity 10
gym activity 2
joggers park 5
Leaflet
distributions 500
Samples were mostly distributed during society activities, but the conversion rate was low as
compared to the retail activities, where we promoted our product through direct selling.
Ville Parle, Santacruz, Khar and Bandra are the areas which come under Khar depo, in total they
have 26 routes. POC already have a large customer base but still there are people who don’t
about POC or untapped market waiting to be tapped, following are the activities which were
planned and executed to increase our customer base:-
MARKETING ACTIVITIES INITIATED & EXECUTED
Sr. no Society name
1 Virendra society
2 Windemere bldg.
3 Jolly apt santacruz
4 Joy White house apt
5 Kunal apt khar
6 Parijat apt
7 La mer bldg.
8 Parijat lilavati hosp
9 Captain villa bldg.
10 Hill niketan apt
11 Benmar society
12 Mount Marry apt
13 Blue bird yoga classes
Society activities where either we were allowed to sell our product door to door or by creating
chaos in compound of society. The selection of premium societies to carry out promotional
activities targeting the premium segment customers helped in generating quality leads for the
project.
Retail activities were also carried out where with the help of store manager or staff, chaos was
created and people were informed about the product and samples were given out in return of their
contact numbers and address so that we can follow up with them. Prospect was developed by
face to face discussion during the activities, highest conversion rate was from retail activities, the
reason for such a response can be a good selection of retail with good foot fall, good cooperation
with the store staff, time and day’s assigned, social compulsion and etiquettes.
Activities were also carried out in Gyms and joggers park to target the health conscious people
as the milk just have 3.5% fat.
Sr no Retail activity
1. Neelam Foodland store
2. Patel store
3. Champion store
4. Society store
Retail stores like Neelam Foodland, Khar and Patel stores, Bandra which are known for their wide
range of quality products, people in Gyms and joggers park were interested in high quality
products, so there were easy to target. Table no-5.5
Sr no. Joggers park
1. Bandstand joggers park
2. Carter road
Doctors and play schools were also targeted, Pride of Cows being a healthy product can be
referred by doctors to their patience and direct selling was done in schools annual and sports
functions, where parents were informed about our product.
SALE ANALYSIS
With reference to the graphical sales chart above, maximum sales were generated through
reference which is about 40% of the total orders. Evaluating the chart based on the number of
days activities were conducted the productivity per activity can be estimated as follows:
Sampling 1L Pride of Cows bottles were found to be more efficient comparatively through
event activities with 2.15 order/day. Also, the least efficient activity conducted were
promotion in societies resulting with a productivity of 15%. The inference that the
management can be drawn that maximum sales generation was through references which
TOTAL- 231
Avg Sale/Day - 5.13
mean word of mouth is highly profitable as compared to sampling activities. Reference is
more responsive compare to other activities and feasible also. The cost indulge in this very
low as events, retail will pull more money and energy. Even the trust factor can be generated
through the reference rather than any other activity. This customer base is a positive impact
over the sales for Khar depo.
Fig- Customer Base
This chart shows the result of the Depo khar which shows increase in customer base by 231.
ie 11.68% of growth in customer base in Khar depo.
Increase of customer base is the result of Direct selling, as a result litres per day increased
from 831 to 888 litres/day.
0
500
1000
1500
2000
2500
Before SIP After SIP
Customer Base
LPD growth
Fig- LPD Growth
Above chart shows growth of milk perlitre from 831 to 888 ie. 7.9%. POC should target more
of restaurents and cafes for better growth.
SPOT VS FOLLOW UP
With an impressive sale order of 60 of those were registered as spot enrolment mostly from
Retail & Event was condescending. The reason for these other than strong sale skills can be
deduce to innovators stage within psychographic, high involvement of the customers
throughout the interaction, annoyed and dissatisfied with the current usage of milk, awareness
about the product enhancing the cognitive approach in its final decision and above all they
loved the product as explained to all interns during the product briefing the product speaks for
itself which made the entire sale closing comfortable. Also, an important observation to
highlight is even though the activities were performed mostly at residential the spot enrolments
780
800
820
840
860
880
900
Before SIP After SIP
LPD Growth
LPD Growth
831
888
were the least 2, the reason for the above can be expressed as in door to door pitch the
involvement is low.
Fig-Spot vs follow up
A product can only been promoted, in this case sampling, but expecting a sale is less feasible
because the person is not under any of the above pressure points discussed, the only factor can
been rooted for is if the person has heard about the product before for which the odds are pretty
low.
0
10
20
30
40
50
60
70
80
90
RETAIL EVENT RESIDENTIAL REFERRAL
25
7
16
89
28
14
2
SPOT
FOLLOW UP
PROFITABLE VS VOLUME SALE
Fig- profitable vs volume
As the sale margin was not disclosed, Profitable sales are personally categorized as Daily and
Alternate customers while Value sales are categorized as Thrice, and more than thrice. Higher the
usage higher is the revenue generated from a single customer with diminishing overhead cost.
Based on the 231 sales that were generated, 39% of it was estimated to be Profitable customers.
Usage can only be estimated based on the milk drinkers and frequency of milk consumption in the
family. Based on the interaction during the promotion, customers expressed their acceptance of a
trial service and then post the evaluation would to freeze their order pattern. An effort must be
initiated to basket these customers as a repeated usage customer thus increasing brand loyalty and
goodwill.
Customers preferred order pattern thrice a week rather than daily purpose. This shows the
consumption of family and some of them even ask for one bottle a week. Some are alone so they
want to use the product but because of the order pattern they refuse. So some strategic action
0
20
40
60
80
100
120
DAILY
THRICE
MORE THAN
THRICE
78
120
33 Profitable
Volume
should take place to cater this category of customer as they can donate a good amount of sales for
the product.
FOLLOW UP RESPONSE
Fig- follow ups
The chart above shows the follow up response of customers. 18% of people were converted, 15%
told to call later, 7% told they were out of town, 22% found it expensive, 21% were not interested,
13% told they will call if they want to start the service, 3% didn’t tried the sample and 6% had
other reason like they are travelling or they wanted once a week which was not possible. These
were the problems faced during follow ups.
0
5
10
15
20
25
18%
15%
7%
13%
3%
6%
22% 21%
SURVEY ANALYSIS
Fig - how people come to know about POC
This is data is based on the survey done by us to know the customer’s perception, what they think
about the product, the quality, packaging, how did they come know about it etc. This survey was
mainly done to gain references from the existing customers and also to solve their problems if they
had any related to the product or delivery. This data was also used by the company to know about
the loopholes and gave them an insight of on what features should company be working upon to
increase their customers.
The above figure shows the result of first survey question that was to understand the medium from
where they got to know about the product, and the highest voted option was references or we could
say Word Of Mouth, mostly people use this product because someone in their family or friends
have referred it to them, and they found it healthy.
4%
72%
17%
5%
2%
Internet
Friends/Relatives
Events
By calls
Retail stores
HOW DID YOU COME TO KNOW ABOUT POC?
Fig - POC consumed by
Figure2, it is the second survey question to evaluate who is the consumer of the product and to
which group they fall into. This will be a key to understand the consumer choices and also add a
note to target customer. To whom the sales person should approach will be inferred by this
evaluated data. As we can infer that it’s mostly consumed by small children’s. By survey POC
come to know that the customer are mostly using for their small children’s till the age of five.
Which is a wrong perception adapted that supposed to be changed.
Fig- which other milk brands used by customer other than POC
This question is about which milk is consumed by the customer other than the POC and why?
This is to understand the competition in current market and the reason behind there usage.
59%23%
14% 4%
CONSUMED BY
Young kids
Teenagers
Adults
Elders
21%
28%
8%
7%
15%
12%
3% 6%
Amul
Gokul
nestle
mother dairy
Pouch
tetrapacks
none
others
WHICH OTHER MILK IS CONSUMED ?
With respect to above it can be inferred that Gokul is the most used brand, because most of the
customers find POCexpensive or they don’t belive in the concept of fresh milk and they don’t find
any difference in the milk they are using and POC. Some Customers using POC also use other
brands because the main reason for using POC is for kids. Repositioning has to be done for the
brand and people have to be made aware of the freshness POC is offering and the milk is not only
for kids but for every age group, this can only be done by educating people about the benefits of
fresh and wholesome milk and what it can do to there body.
Fig-packaging Fig-Time
Packaging is a very integral part of any product and a reason for liking or disliking the product.
POC provides milk in a transparent tamperproof plastic bottle. 54% of the customers like the
packaging of POC, 5% of the total customers are dissatisfied by the packaging and the reason is
that these bottles are made of plastic.
Another survey question was related to delivery timing. Now here 26 % of the total customer base
is happy with the delivery timing but 23% are dissatisfied because they want to have their milk
before they leave for office or their kids go to school. Every customer has their own requirements
related to timing which is kind of difficult to achieve as some asked early morning deliveries or
some after nine. This time issues need to be rectify by strong logistic to reach to every customer
on their demanded timings. Others were neutral about the services and delivery timing.
54%24%
17% 5%
0%
PACKAGING
Data shows that customers are really happy with the unique packaging and ease handling of the
product. The biggest problem customers faced was where to dispose these bottles. That is one of
the biggest reason people didn’t prefer POC.
Fig-Quality
The above graph shows how much percent of people are satisfied with the quality of product which
is 48%.of customers which are extremely dissatisfied or dissatisfied, raise this issue in front of
senior executive but because of not getting proper response they stop using POC.
.
The above graph shows reasons for discontinuing POC, 28% of the total customers discontinued
POC because of the service (not getting proper response from CSD or a senior executive when
48%
27%
18%
6% 1%QUALITY Extremly satisfied
satisfied
neutral
dissatisfied
Extremly dissatisfied
23%
18%
28%
5%
13%
2% 11%
Quality
Packaging
Service
Relocation
Billing
Mishandled Complaints
Other
REASONS FOR DISCONTINUING POC
they have issues related to the product) And one thing also become clear here some churn
customers are happy with the quality and 4 churn customers 1 is extremely dissatisfied, 1 is
dissatisfied and might be 2 from neutral churn customers. And other brands are near about Rs 50/-
per litres. Customers are not only concerned about price but for that purpose they demanding some
discounts and annual subscription schemes.
Here the customer perception and there mind set defines that pride of cow’s milk is available for
Rs 80/litre and other any ordinary brand are Rs 40/- means 1:2 ratio but the customers are never
think about the quality and premium when the price issue comes. we can see that those customers
are rated high pride of cow’s milk in terms of overall satisfaction and here they are showing reasons
for choosing other brands over pride of cows like taste and quality, taste quality & nutrient value,
taste quality & packaging, taste, quality this elements. Here the pride of cow’s milk gets the mix
response. When they really face any problem with the pride of cow’s milk brand in terms of any
things like services, delivery has been sort out with the very high tactic manners.
The reasons for discontinuing were further analysed in detail and again approached to
valuable customers with an intention to win them back. A sample bottle were sent to all the
churn customers who we had successfully convinced about quality, service improvement and
thus to assure them they were given trial samples for three days. We successfully won back
32 customers during our 45 days internship programme.
CUSTOMER INSIGHTS
1) To have better coordination between billing department and delivery boys especially
when the customers have asked to stop the service for a specific period for being out
of town.
2) To have proactive follow ups and rectification mechanism once a wrong bill or a
cumulative bill is generated.
3) To customise delivery time as per customer’s requirement without any delay.
4) To have a constant point of contact person accountable for a particular route for
customer service.
5) To supply 500ml to suit customer’s daily consumption requirement.
6) Pride of cows has proven to be excellent quality milk however some kids experienced
stomach pain, constipation and vomiting hence the quality must be verified.
7) Due to very low bacteria content some housewives faced a problem in curd formation.
8) Milk consumption is reducing due to gradual shift to green tea and becoming vegan.
9) To avoid billing problems pride of cows can initiate swipe machine to avoid any
complication.
10) Pride of cows must extend its product line by offering paneer, curd and flavoured milk.
11) Customers are sceptical to change their existing brand of milk as they are a less aware
of organic milk benefits hence educating customers is the key to sales.
12) Customers don’t see any difference between the local milk vendors to pride of cows
as both provide raw milk home delivery.
13) There is misconception among few customers that this milk is only meant for
betterment of kids and hence should be only consumed by them.
14) As the milk is priced at 80, price sensitive customers don’t believe that they are getting
value for money.
15) There was seen a contradiction between two segments, one being the premium
segment having the purchasing power which were the actual target segment however
not willing to buy the product as changing their milk brand was a trivial concern and
the other being the non-premium segment however being well informed about the
quality of the product and hence willing to invest for the betterment of their family.
PROBLEM ANALYSIS
Post Purchase Interaction
Orientation of the company must be a customer centric approach. After the purchase, the consumer
might experience dissonance about their purchase and be alert to information that supports their
decision.
Marketing communications should supply belief and evaluations that reinforce the consumer’s
choice and help him or her understand well about the brand. Thus, the management must monitor
post purchase satisfaction and post purchase actions. Also, dissatisfied customers communicate
more negative word of mouth than satisfied customers communicating positive word of mouth.
1. Customer Dissatisfaction
Based on personal experience and interactions with various stakeholders in my 45 days of
internship, complaint about the product quality or taste was hardly raised as the product is
PURCHASE
POSTPURCHASE
DISSONANCE
USAGE EVALUATION
SATISFIED
BRAND LOYAL
INCREASED
USAGE
DISSATIFIED
BRAND SWITCH
DECREASED
SWITCH
POST PURCHASE EVALUATION PROCESS
superior milk. However to our novelty there were a few customers who complained about
not suiting kids’ health and thus causing constipation, stomach pain, vomiting extra.
There were also complaints that the consistency of the milk varies asper the season.
While on the other hand, the management finds it very difficult to handle and serve the
customers in an efficient & effective manner. As Philip Kotler rightly said “Customer
Retention is more important than Customer Attraction”, which the management fails to
understand due to which churning arises, thus the sales number and the rate of market share
slows down as on an average with every 10 customers 4 is churned.
The churning results in building pressure to the top management cascading it as sales
pressure to the sales force thus hampering the work culture in the organizational as well as.
Also “Acquiring new customers can cost 5 to 10 times more than the costs involved in
satisfying and retaining current customers” again said by Philip Kotler, for the product to
grow in this segment the cycle of churning and gaining new customers must come to an end.
2. Pet Bottling
On an average customer’s house, with a product usage rate of 1liter of milk daily, in a year, the
customer is left with 365 PET bottles resulting in a distress situation for the customer. While on
the other hand the company doesn’t want to collect the bottles and reuse the bottle to maintain its
integrity and avoid any complication in the delivery. Alternative approach has been taken by the
management which is to be implemented in the future to tackle this problem to collect and use
these PET bottles to generated energy to run the plant.
3. Product Ambiguity
Words such as PET bottle, Dutch Holstein breed are usually considered as plastic and Jersey breed
in the mind of the customers. Issue with availability of the product were also encountered as the
product was not marketed and sold as a shelf product but only delivered on subscription basis. To
answer the customers in the field the price difference of about a 100% hike was handled rationally
and convinced the customer to subscribe for the service.
4. Poor Online Presence
The simple fact that all companies are moving from the conventional brick-to-click approach is
because their target audience is virtually embedded in the e-world. In case of POC,a great visibility
can been attracted to capture the interest of our target audience. Online marketing can be exploited
in a tremendous fashion to again consumer interest. Various interactive platforms such as a
Facebook, Instagram, and YouTube can be used in the companies’ favour which will also create
brand awareness while creating a buzz in the e-world; a good PR interaction can create wonders
for the product.
5. Inefficient use of CRM team
CRM, as the name suggest Customer Relationship Management must be used to its potential. Other
than the current trend of answering inbound calls, CRM team can energised and redirected to
connect to customer for receiving feedbacks, contribute to sale through referrals, identifying
profitable costumers for better service, answer complaints & complements. CRM team can play a
crucial role to build in a relationship bridge between the Brand and the customer.
6. Delivery Issues
Milk is the most important commodity to start the day for all Indian family irrespective of the
demographic or psychographics. Frequent change in delivery boys and their routes is creating
problems within our customers which are the major reason for churning. Another USP of the
company which offers customised service delivery backfires because it leads to uneven
distribution pattern for the delivery boys and hence chances of faulting tends to increase. Some
customers have complained that there hasn’t been a constant delivery times and hence again causes
ambiguity of milk delivery. Also there have been complaints that the delivery boys still deliver
milk when they have been asked not to for a specific time period as the customers are travelling
out of towns.
7. POC intranet prone to misuse
The company’s intranet application which is been integrated for employees of POC to manage
costumer order and information is being opened for everyone in the sale force to use without any
hierarchy restriction. The BDO designated to an area can access the status and data of a BDO of
another area, thus can been misused and cause damage in form of loss of working hours and energy
to rectify the error.
SUGGESTIONS & RECOMMENDATIONS
1. Identified & tapped Target audience
Since POC’s launch in 2012, right amount of time & energy has been allocated by the management
in order to build a quality customer base. In this last two & half years the company has strived to
and position the product in the right segment which has resulted in abundance of satisfied
consistent customers further leading to referral and thus increasing the customer base to 4000
customers in Mumbai and Pune. However the company need to work on getting the right target
audience just not on the basis on their purchasing power but also on based of awareness and
demand for quality products. This can only be done by educating the customers about its premium
quality milks which is its point of difference.
2. Not Position Niche Category
Priced at 80 rupees/litre the company has tremendously avoided failure by not presented it as a
celebrity milk drink and has showcased its feature of ‘Points of difference’ as organic, fresh (8-10
hour age milk), single breed. Even though serving almost all celebrities and elite industrialist of
the society, POC is not marketed so as not to confuse the perception of the consumers as a High
Net Income (HNI) drink but as a better alternative to current inconsistent and poor quality drink.
3. Discounts or schemes
The company has shown courage and confidence by not implementing for a Rapid skimming
pricing strategy to cover cost or capture market. The simply reason why the company is not
promoting POC with discounts or schemes with the either of the above objective is because it
understands that the product is a daily affair and any fluctuation in the price can affect the
sentiment of a price sensitive audience base.
The financial aid from other star products of Parag Milk Foods Pvt Ltd such as Go cheese and
Gowardhan has stood as a backbone for the company and helped POC to sustain all this while.
However due to increasing competition from the new entrants in the organic milk segment where
they are providing yearly subscriptions discounts, pride of cows should come up with some counter
scheme to sustain the completion in long run.
4. Knowing thy Customers
In order to rectify the burning issue of churning, an in house customer research must be conducted,
to identify the category, preference, interest, suggestion, complaints in order to improve service.
Currently, the customer data is minimum and incomplete through which interpretation of any sort
cannot be possible. Furthermore, post purchase evaluation must also been initiated to attend and
understand the customers, which is currently unknown and only surfaces after customers churn
which, further hampers on its brand equity. After gathering data of churn customer there has to be
quick rectification mechanism to win back the churn customers which is currently not been
implemented.
5. Increase touch points
Since the company is currently catering only a smaller audience, feasibility of promoting the
product through marketing communication is been chosen wisely but not to its full potential.
Below are channels which the company can adopt to create touch points for potential customers to
interact and get exposed about the utility and benefit of the product.
6. Sales Target
Currently, the company is following a laissez faire approach with its sales target. On an average,
a Business Development Officer has to achieve a target of 3 new sign ups per day which is tracked
on weekly/monthly basis, based on which the BDO’s is been evaluated. A much efficient
evaluation can been incorporated with factors such as Lead generated date, source of lead
generated, Inbound calls, source of inbound calls, Number of churned customer, Reason for
churning, light usage sale, profitable heavy usage sale, conversion of light users to heavy and other
marketing activities initiated and implemented.
Targets can be set for each of the above factors, which can provide a better perspective regarding
the strengths and weakness of channels and processes involved. An incentive scheme can also been
announced to increase motivation amongst the sale force thus may add up to drive up the sales
effort and profits.
7. Digital & Offline Marketing activities
Our potential customers spends quality of time in the virtual world, a blend of PR & Marketing
online activities can create a sensation in an optimum manner which can be directly tracked down
PRIDE
OF
COWS
to the sales figure and can further be tracked by the analytics of the webpage. Famous nutritionist,
dietician, health magazines and outlets can been approached for their contribution-online and
offline to write blogs, conduct seminars, exhibitions and gatherings to touch masses and create a
cascading effect which the company can cash on.
Also there should be contest for customer interaction and engagements on social networking sites
like Facebook, Instagram etc. This will increase its brand visibility and its social media reach.
They can post pictures of homemade recipes tried by housewives using pride of cow’s milk thus
encouraging them to use poc for more than one reasons.
8. Delivery boys Issue
With high attrition rate and poor training in the logistics department the company is facing daily
issues in mapping delivery routes. A trend has been generated in which young college students
opting for the job, work for 2 hours for two months which fetch them their pocket money. This
trend must been brought to an end because for such a premium brand with a daily interaction
(probably the first brand of the day the person comes across), disappointment can arise if service
is not premium and will affect the functional and aesthetic value surrounding the brand.
In order to deal with this, the recruitment of delivery boys could be outsourced and work on
commission basis on the completion of the decided probation period. Also to deal with collection
of bottles problem, delivery boys can have reverse mechanism by collect the previous day bottles
when it comes to deliver new bottle, hence this will solve problem of customers of unwanted bottle
collection.
9. Proposed Customer Service Channel
An integrated in-house Customer Relationship Management can be used adequately which is being
represented in a cyclical flowchart below:
Source: Lynda site, shareit site/sales management
The objective with this channel is to create a customer service management with periodic
interactions between the two C’s (Company & Customer) to improve brand awareness and create
multiple touch points for opportunities of brand recall and exposure. Engaging customers in high
involvement activities will lead to high customer satisfaction level thus spreading the good word
hence adding up to the customer base.
10. Development of a mobile Application
The object of mobile app is to solve majority of the problems currently faced by the customers and
hence ensure better coordination between customer requirement and customer service offered by
the company. The app can have features like payment facility, bill details, and change in delivery
time or quantity requirement, product information and details about the farm to increase awareness
SIGN UP
Conversion
'WELCOME To The
FAMILY' CALL
Mail & Telephonic
INFO BOOKLET
Company,Cows,Custo
mer
Count,Technology,
MONTHLY JOURNAL
Growth in the
sector,Technological
Updation,Testimonals,C
ertification & Updation
Future PlansGREETING SERVICE
Customised greetings
wishes through
tags,mails and calls
REFERRAL SCHEME
In a month Refer 3
customers & get 3 litres
waived off
LOYALTY SCHEME
Rewarding Profitable
customers
REFERRALS
Tappingon the
referral data
about the quality standards adopted, recipes that can be made using pride of cow’s milk. These
were some of the essential features to be incorporated however as major consumers are kids they
can have some kids based games for further engagement, also fun DIY projects of innovative
plastic bottles use for children during summers. To generate quality references they can adopt
“share if you care “thus benefiting both the customers and the company.
KEY LEARNINGS
1. Understanding consumer behaviour- consumer is a king, this is internship help me to
understand this myth. Suspecting the customer and understanding their needs in necessity
that I have learned in a proper way to suspect the potential customer.
2. Interacting and negotiating with the customers- suspecting the potential customer than to
deal with them is a difficult task as all customer are different so it is must to understand
them, formulate strategies to deal with them. So that closing a deal will always in our
favour.
3. Data collection- collecting the data is crucial for any organisation and even to a normal
salesperson. Data will help to analyse and form strategies accordingly.
4. Data analysis- data collection required to analyse and understand the action that needs to
be taken. This I have learned through interacting with customer and working on them to
serve them politely.
5. Corporate and society tie-ups- pride of cow is a premium product which demand premium
customer for this getting permission from all corporate and societies, it’s difficult due to
security concern salesperson were prohibited, but how to make your way, this is what this
internship has taught me.
6. Acquiring customer- now acquiring customer is not difficult as it was before for me. Now
I can easily interact and deal with people.
7. Customer Management- customer management is necessary as every organization need to
take care of their customers. POC have same process and it has taught me to deal with
customers and manage them with a honest and polite approach
8. Team player-this internship has taught me how to be a team player, as we were a team of
four interns, there were difference in opinion, but at the end coordination and cooperation
were the key to success.
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 in the retailers.
There are about 1.22 billion people in India, with around 120 million cows & buffalos. There is a
long tradition of milk production and consumption (based on small units), cooperative structures,
and a tradition of selling milk over the counter in the street, milk that consumed fresh. 70% of the
population lives in the countryside with only 30% based in cities; however with the trend of
urbanization this is changing. 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.
India dairy is emerging as a strong consumption story, with the market growing at pace. Probably
this trend will gain momentum over the next 4-5 years driven by increasing consumption of value-
added products and the formalization of the value chain. The main factors driving growth are
increased consumer interest in higher protein diets, greater affordability due to growing
disposable incomes, and a rising awareness and availability of dairy through channels such as
organized retail and food service segments.
Considering all the above information, Pride of Cows has tremendous potential to shake the
current milk sector. Currently standing out as a Problem Child with a low market share and low
market growth within an established market. The company must announce its arrival with an
aggressive growth strategy. Confidently, working close with the product, Pride of Cows will soon
be crowned on its company brand portfolio assuming all the strategically move goes right.
BIBLIOGRAPHY
Mr. DevendraShah,Chairman&Managing Director,ParagMilk Foods.(n.d.).RetrievedAugust20,2016,
fromhttp://www.indiainfoline.com/article/research-leader-speak/mr.-devendra-shah-chairman-and-
managing-director-parag-milk-foods-37524025_1.html
Milkand Dairy ProductsIndiagrowthstatisticsdetailsfigures.(n.d.).RetrievedAugust20, 2016, from
http://www.indiastat.com/14/maharashtrastat/agriculture/2/milkanddairyproducts/167/stats.aspx
IndiandairyIndustry.(n.d.).RetrievedAugust20,2016, from
http://www.aavinmilk.com/dairyprofile.html
INDIAN DAIRYINDUSTRY.(n.d.).RetrievedAugust20,2016, from http://www.indianmirror.com/indian-
industries/dairy.html
http://www.imarcgroup.com/dairy-industry-in-india/
Understandthe Competitive Structure of IndianDairyMarket.(2015). RetrievedAugust20,2016, from
http://www.imarcgroup.com/indian-dairy-market
DairyIndustryinIndia:2016-2020. (n.d.).RetrievedAugust20, 2016, from
http://www.articlesfactory.com/articles/business/dairy-industry-in-india-2016-2020.html
1. Milk IndustryinIndia.(n.d.).RetrievedAugust20, 2016, from
http://www.authorstream.com/Presentation/mashrafpaul-1172339-1-milk-industry-india/
CommentsforAnjalisFoodKaleidoscope.(n.d.).RetrievedAugust20, 2016, from
http://anjalisfoodkaleidoscope.com/comments/feed
Parag Milklaunchespremiummilkbrand'Pride of Cows',worthRs75 perlitre.(n.d.).RetrievedAugust
20, 2016, fromhttp://articles.economictimes.indiatimes.com/2012-08-30/news/33499379_1_parag-
milk-foods-devendra-shah-pride
MilkqualityinIndia.(n.d.).RetrievedAugust20, 2016, from
http://www.milkproduction.com/Library/Editorial-articles/Milk-quality-in-India/
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INTERNSHIP report

  • 1. A Summer Internship Project Report On “PRIDE OF COWS” Submitted in the partial fulfillment of the requirements for Post Graduate Diploma in Management - PGDM SUBMITTED BY Name: Prachi Pawaiya Roll No: 1519 Batch: 2015-17 UNDER GUIDANCE OF Prof. Sushant Nanda Universal Business School, Mumbai (Karjat), 410201
  • 2. DECLARATION This is to declare that I Prachi Pawaiya student of Universal Business School, Mumbai (Karjat), PGDM batch 2015-2017, has given original data and information to the best of my knowledge in the project report titled Pride of Cows is a record of independent work carried out by me under the guidance and supervision of the Prof. Sushant Nanda towards the partial fulfilment of requirement for the PGDM course. I also agree in principal not to share the vital information with any other person outside the organization and that I have not submitted it for any award or any other title, degree or diploma. Date: 24/08/2016 Place: Mumbai (Karjat) Name: Prachi Pawaiya Roll No: 1519 Specialization: Marketing
  • 3. CERTIFICATE This is to certify that the project entitled “PRIDE OF COWS”, submitted to Universal Business School, Mumbai (Karjat) in the partial fulfilment of the requirements for the award of the Post Graduate Diploma in Management (PGDM) embodies the results of bonafide project work carried out by Prachi Pawaiya under my guidance and supervision. To the best of my knowledge the results embodied in this project have not been submitted to any other university or institute for the award of Degree or Diploma. The assistance and help received during the course of this investigation has been duly acknowledged. Project Guide: Prof. Sushant Nanda Program Director (PGDM): Prof. Vijay Tandon Date: 24/08/2016 Place: Mumbai (Karjat)
  • 4. ACKNOWLEDGEMENT It gives me immense pleasure to present this Concurrent Project Report. However, it would not have been possible without help and support of all the team members of Parag Milk Products I would like to thank Mention project guide names for guiding me in my tenure of internship on Pride Of Cows Without their support and guidance I wouldn’t have come so far to prepare this report. I would like to express my thankfulness to Universal Business School, who has given me great opportunity to work on this project. I am also grateful to my loving parents and my kind friends whose prayers, affection and support are always a source of encouragement. Their suggestions and supply of information were really very valuable and helpful to me. Their continuous encouragement and support helped me for completing this project successfully Prachi Pawaiya Roll No. 1519 Specialization: Marketing Universal Business School, Mumbai (Karjat)
  • 5. EXECUTIVE SUMMARY Parag Milk Foods Pvt Ltd, company’s attempt to inform, persuade and remind customers – directly about their premium product Pride of Cows was the Internship objective to be carried out in the 45 days tenure. As the product is not displayed on shelf at retail outlets and positioned as Farm- to-Home milk, various marketing communication modes were initiated and also encouraged by the management to create positive brand equity by initially establishing a dialogue and building relationship with the target audience. Intercept as retail, society, gyms and events were preferred and tapped to sample the milk as a sales promotion incentive. To start with briefing and training was exercised in areas of product and sales department. Customer information was a challenging objective to achieve through sampling, considering on the location, time and interest of the other party. This information was used to obtain feedback about the sample product and they were briefed about the enrolment details. Positive response were received through feedback calls and over the counter spot enrolments which was encouraging This motivated to branch out to other marketing activity which was backed by the manager and team. Significant insights were distinguished and identified which helped to plan for further course of action in creating productive results. Our team’s exclusive and consistent performance had resulted in achieving the third highest sales figure of 231 amongst 12 teams from Mumbai. Also 32 churn customers were won back with great efforts that have initially discontinued pride of cow’s service for various reasons. Gaining hands on experience with a newly launched product peeking through the introductory stage and contributing to its marketing has cultivated a sense of achievement. Also taking surveys of premium segment of customers helped us gather valuable insights which further helped us to device profitable marketing strategies. The data obtained through approximate 1500 customers was followed by data analysis to identify trends and other consumer behavioural patterns. Team also undertook comparative analysis to find out further scope of improvement to the Brand.
  • 7. INDUSTRY PROFILE The highest milk producer in the entire globe – India boasts of this status. India is otherwise known as the global dairy industry, with opportunities galore to the entrepreneurs globally. Anyone might want to capitalize on the largest and fastest growing milk and milk products market. The dairy industry in India has been witnessing rapid growth. The liberalized economy provides more opportunities for MNCs and foreign investors to release the full potential of this industry. India ranks first in the world in milk production, which has gone up from 53.9 million tonnes in 1990- 1991 to 127.9 million tonnes in 2012-13. The per capita availability of milk has also increased from 176 grams per day in 1990’s to 290 grams per day in 2012-13. This is comparable with the world per capita availability of milk at 289.31 grams per day for 2012. This represents sustained growth in the availability of milk and milk products for the growing population of the country, apart from being an important secondary source of income for rural families. In India dairy business has been practiced as rural cottage industry over the years. Semi- commercial dairy started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of the 19th century. Since Independence this Industry has made rapid progress. A large number of modern milk and milk product factories have since been established. The organized dairies in India have been successfully engaged in the routine commercial production of pasteurized bottled milk for Indian dairy products. The growth of Indian Dairy Industry during the last three decades has been impressive, at more than 5% per annum; and in the 90's the country has emerged as the largest producer of milk. This is not a small achievement when we consider the fact that dairying in India is largely stringent that farmers in general keep dairy animals in proportion to their free crop and also are available for family labor with little or no purchased inputs and a minimum of marketed outputs. The existence of restrictive trade policy milk in the Diary Industry and the emergence of Amul type cooperatives have changed the dairy farming practices in the country.
  • 8. Sources: Department of Animal Husbandry,Dairying & Fisheries, Ministry of Agriculture, Government of India, New Delhi. Farmers have gained the favorable price for their milk and for their production which was essentially a self-reliant one is which are now being transformed into a commercial proposition. In India Milk production is dominated by small and marginal land-holding farmers. And as the crop production on 78% of the agricultural land still depends on rain, which is prone to both drought and floods, rendering agricultural income is very much uncertain for most of the farmers.
  • 9. Dairying, as a subsidiary source of income and occupation, is real relief to most of the farmers in the society. Usually one or two milk animals enable the farmers to generate sufficient income to break the vicious subsistence agricultural-debt cycle. India in the early 1950's was commercially importing around 55000 tons of milk powder annually to meet the urban milk demand. Most of the significant developments in dairying have taken place in India in this century only. The size of Indian dairy industry in both organized and unorganized sectors is expected to double to $140 billion by 2020, on the back of growing demand and rising disposable income. The Indian dairy industry, currently pegged at $70 billion (organized and unorganized), is expected to double by 2020."On the back of a rise in health awareness, disposable income and strong demand for dairy products, the Indian dairy industry is all set to experience high growth rates in the next 5-6 years." the report said. While the dairy industry is growing at a compounded annual growth rate (CAGR) of 15-17%, the value-added products alone are growing way beyond 24%. Milk is the country's biggest agricultural produce, contributing 22% to agricultural GDP. India overtook the US in 1998 to become the world's leading milk producer, accounting for over 15% of the global output. The industry, which had been a national heritage, is now re-emerging and catching the eye of investors due to its growth potential. Growth in financials of existing domestic players, diversification into dairy sector by other companies, surge in private equity deals, entry of foreign firms in the segment are some of the broad indications that India's organized dairy industry will remain on growth path at least till 2020, the report said. The milk production alone is expected to cross 200 million tons by 2016 from the current 125 million tons. The dairy sector has been liberalized in a phased manner since 1991. Many private players entered the market to set up processing facilities in areas with surplus milk. MILK CONSUMPTION & PREFERENCE
  • 10. There are regional disparities in production and consumption also. The per capita availability in the north is 278gm, west 174gm, south 148gm and in the east only 93gm 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 butter, cheese, ghee, paneer (cottage cheese), khoya, curd malai,etc. Only 7 percent 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%. Source: Parag milk website and broachers. It is estimated that around 20% of the total milk produced in the country is consumed at producer-house hold 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,
  • 11. 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. The preferred dairy animal’s milk 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.8000 cores. 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. 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 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.
  • 12. Milk Production Surplus Milk Sold Out 68% Organised Sector 17%. Private Dairies (National) Parag Milk FoodsPvt Ltd Dynamix D'letca Britannia Private Dairies (International) Danone Nestle Mother Dairy Co-operative societies. AMUL Government. Aarey Worli Dairy Kurla Dairy Unorganised Sector 51%. Milk Consumed wiithin 31% STRUCTURE OF DAIRY INDUSTRY IN INDIA INDIA
  • 13. COMPANY OVERVIEW COMPANY SNAPSHOT NAME PARAG MILK FOODS PRIVATE LIMITED FOUNDED 1992 FINANCIAL TYPE PRIVATE FIRM SECTOR DAIRY PRODUCTS INDUSTRY MANUFACTURING, EXPORTING, RETAIL BRANDS GOWARDHAN, GO,TOPP UP,PRIDE OF COWS NET WORTH 2500cr TURN OVER 1500cr MARKETING OFFICE 20TH FLOOR, NIRMAL BUILDING, NEAR INOX, NARIMAN POINT, MUMBAI - 400 021 TEL: 022 – 22844763 MANUFACTURING UNIT AWASARI PHATA, MANCHAR, PUNE MAHARASHTRA,410503 TEL: +91-2133 224763 KEY EXECUTIVE DEVENDRA SHAH, MAHESH ISRANI, RAHUL AKKARA 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 gulab jamun 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 Pvt 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 Manchar
  • 14. in 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.  Bhagyalaxmi Dairy Farm It is spread over an area of 35 acres and boasts of being India's largest cow farm, housing up to 2500 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 of our products 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.  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
  • 15. 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 our products, 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. MISSION & VISION VISION – We strive to optimize the potential of milk across a host of exciting dairy products to fill each day with imaginative and healthy options for our consumers. We believe that milk in all its wonderful forms is one of nature’s most nutritious foods and anyone who consumes milk products daily, benefits from vital nutrients that the body needs. Fulfilling dietary nutritional requirements is a source of great joy and creativity for us. A bigger company also has larger responsibilities. While India is the largest producer of milk in the world, and the commodity has become an important source of income for 70m rural households, the output per animal is dismal. A key area of focus for us is to help farmers and milk producers to boost animal productivity. The enhanced participation and involvement of the private sector is key to further agricultural marketing practices and to make milk and its derivatives more accessible and affordable to India. In this regard, we deploy state- of- the- art technology to enhance productivity. We also seek to drive innovation in milk and milk products through our well-diversified portfolio of brands that deliver dairy products to international standards of quality. To add value to people’s lives every day. We at Parag live and breathe our corporate slogan of ’Ideas for a new day’.
  • 16. MISSION-  Our Consumers Should be able to trust our brands. This is why food quality is a fundamental requirement for Parag. We make every effort to ensure that our processes are safe, and that high quality standards are maintained throughout the supply chain.  Dairy innovation Focus on dairy innovation, enables us to produce an array of products that make milk moments nutritious, healthy, and enjoyable and we market them under well targeted portfolio of brands.  Partnership with the dairy farmers We are working with dairy farmers to enrich their lives, and set new standards for sustainable dairy production. We want to use our resources in a sustainable manner. By having a long term environmental strategy we can help make this happen.  Good citizenship We want to influence the development of society and set an example through our best practices. To make quality milk and world class dairy products accessible to the masses. As a large private sector dairy player, we have the opportunity to do so.  Building long-term relationship with local communities We strive to uphold respectful and constructive community relations, and contribute to the development of communities by building long-term relationships with people, businesses and organisations.
  • 17. PRODUCTS AND SERVICES Source: Company profile site and broachers The company is well known in industry for its milk and milk products. They sale in all states of India, but originally there industry and plant is in Mumbai. Parag Milk Foods has a vast range of products which includes Cheeses (raw as well as processed in various forms & flavours), Butter, UHT Milk, Paneer, Dahi, Yogurt, Ghee, Skimmed milk powder, whole milk powder, proprietary foods like gulab jamun mix powder & dairy whitener under the brand names of ‘Go’ and ‘Gowardhan’ all made from 100% fresh cow’s milk. Apart from its pan-India distribution network covering retail outlets and modern format stores, the Pune-based company supplies its products like cheese, butter, ghee and milk powder to reputed hotels, restaurants, institutions and caterers. It is exclusive supplier of dairy products to major Institutions like Barista, Baskin Robins, Sodexo and Café Coffee Day, major hotel chains like Taj Group as well as to all major Pizza chains like Pizza Hut, Dominos Pizza, US Pizza, Papa John’s,
  • 18. Sbarro, Uncle Sams Pizza, Chilliz, Taco Bell, etc. Parag exports its products like Cheese, Ghee, milk powders, butter & AMF to about 27 countries in the USA, South East Asia, Africa and the Middle East. The company has established its consumer products distribution network in USA, Middle East, Singapore & Hong Kong. Parag Milk plans to go national by launching innovative products in the market. It is having one more plant in Palamner, on the outskirt of Bangalore and planning to add 2-3 more in coming years. The company aims to focus on establishing a strong foot-hold with major cheese consuming institutions and pizza chains. It is having Cheese plant having capacity 40MT per day & plans to expand it to 100MT per day. Besides, it also plans to establish a distribution network for fresh milk products. As a strategy, we take care of quality and taste of the product. BIRTH OF PRIDE OF COWS Which part of the cow’s milk we drink doesn’t come from a cow? Could it be the blotting paper, the sodium hydroxide, the borax, the vegetable fat, or all of the above? On an average middle class household, 9 out of 10 houses consume milk from packed or raw milk from the local dairy vendor, of which 6 out this 9 when boiled forms foam like in a Nirma commercial.
  • 19. The Consumer Guidance Society of India initiate and encourage us how to test cow’s milk at home for sodium carbonate, hydrogen peroxide, formalin, urea, pulverized soap, detergents, benzoic and salicylic acid as well for safer-sounding like water, skimmed milk powder, salt, cane sugar, glucose, starch, and buffalo milk. Some of these unwelcome add-ons reduce or delay spoilage by making the milk alkaline, some increase the SNF(Solids Not Fat, including protein, carbohydrates, vitamins and minerals – but now synonymous with density) value of the milk making it appear thicker, and some raise the lactometer reading, which has been reduced by the addition of water to milk. Some of these merely reduce the nutritive value of the milk, and some can carry disease (water), while others can damage organs, and are known carcinogens (formaldehyde). Every few months a new milk adulteration racket is busted somewhere in the city. Based on result of a recent survey, 65 per cent of the milk in Maharashtra, and that just under half of the milk in Mumbai are tainted. In October of last to last year, eight people were arrested for selling adulterated milk repackaged in packets of popular brands. The milk was mixed with water that was not fit to drink. Post this repeated encounters in different stations, the Supreme Court of India encouraged state governments to make the production and marketing of adulterated milk an offence punishable by life imprisonment. Adulteration is performed at every stage: before milking, during milking and after milking. Because most of the milk in and around Mumbai comes from cooperatives made up of small dairy farmers, it isn’t as easy to control what goes into the cow’s body before it is milked, whether it is poor quality (pesticide- or fertilizer-laden) feed or banned hormones that are said to cause anything from early puberty in girls to breast development in men. A lot of the milking is done by hand and in unhygienic surroundings, which can introduce bacteria and other contaminants to the milk. Given these circumstances, Mr. Devendra Shah, Chairman and Managing Director of Parag Milk Foods Pvt Ltd had identified a business opportunity, and started offering premium milk to Mumbai and Pune citizens. Consumers were suffering with this mal practices and poor value for money service, the management had thought of converting this cons to its strength and introduced an untouched and fully mechanized Farm-to Home milk service from in house cows. Thus, was the birth of Pride of Cows milk!
  • 20. Poc 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. The Pride of Cows brand is a reflection of passion for milk. Milk captures the imagination, sparks interest and ideas, adds color and flavor, and makes feel fulfilled and happy. The significant part played by milk, strengthening and protecting the body and mind to live a fuller, more complete life each day. The cow’s milk at its best represents the pinnacle of nutrition and health. The Gowardhan factory was started in the year 1992. It is located in the milk belt of Manchar on the Mumbai Nashik highway. Unit 1, processes raw milk into processed pouch milk, curd, paneer, ghee, and shrikhand. The huge investment in infrastructure has enabled the unit to process up to almost 12 lakh litres of milk daily. The factory has employed around 600 fixed daily wage workers. Thus, being the source of income for farmers in the neighboring towns and villages. Poc have a high standard of hygiene and quality control, Pride of Cow is the best cow milk in every way- bottled and delivered fresh, chilled to 4degree Celsius, to your doorstep through a process that is completely mechanized from starts to finish. This ensures that you reap all the benefits of milk. Pride of cow milk is instantly pasteurized, chilled and packaged in bottles and sent on its way to consumers, in a process that mechanized, maintaining absolute purity and keeping the taste, structure and nutrients of the milk intact. It’s everything that milk should be. Pride of cow has lots of benefits like it is untouched by human hand. As the milk is tested at every stage of process by the help of mechanized solution it has low bacterial count. Poc have fully automated process from milking to processing, pasteurizing, and to filling the milk into tamper proof bottles. There are no additives or preservatives in the whole milking process. This is why poc can firmly positioned about their quality of product and the unique concept. Milk is homogenized and pasteurized before cooling that help to kill the bacterial content of milk. Therefore, the bacterial count is so low in this product. After this processing over milk, the milk
  • 21. is poured into the tamper proof bottles and refreeze it at 4 degree Celsius temperature maintain till the last leg of delivery. Tamper proof bottles are convenient to deliver and not easily broken able. This is how the pride of cow manages to deliver the milk from farm to home. All the milking process is carried out in the early morning around 3am and then it delivered to the entire Mumbai and Pune region. From where they head towards their decided destination to each depo and after this all the delivery boys delivered to each customer’s house within six to nine in the morning. COMPETITORS INFORMATION Pride of Cow is there in a market from last six years and it’s a new concept for the company and also for the market. After pride of cow there are other brands that are emerged with the similar concept. This may turn as rivalry market for the brand poc. So it’s necessary to keep a check on the actions of other competitors, which may try to capture pride of cow market. The brands like Sarda farms which is a strong competitor of poc as they have a share the same concept but Sarda’s logistics is much stronger compare to the poc. Competition is increasing rapidly as this is the profitable sector for the companies so there are new brands like lalgoon, Sarda farms, BlissFresh, TrueSip. So all this are the emerging competition for the brand poc. Poc is a popular brand among most of the celebrities and in other premium segment but competitors are giving them the toughest competition on basis of pricing and distribution. If Pride of cow is more marketed into the niche market with the motive of spreading awareness for their customers would be beneficial as competitors have introduced with verities of milk for the health conscious people like tonned milk, skimmed milk etc. Customers have preference as they are becoming more health conscious and some are quitting milk and its products. It’s a very difficult task to keep customer engage and loyal for the brand.
  • 22. Identifying the potential of this market and the given circumstances, a few new players have entered providing the same service, which is listed below: LALGOON MILK FARMS “LALGOON” promotes hygienically produced raw milk because the founder of Lalgoon believes heavy pasteurisation destroys beneficial bacteria, enzymes and natural vitamins. Lalgoon’s raw milk, which is the only kind they sell, has upwards of 3.8 per cent fat. The milk has the faint aroma of stables and smells and tastes closest to what we drank as children. Established -2010 Price – 65 Rs/litre Office - Bandra Presence - Mumbai Suburban CUSTOMER BASE: < 200 Pros: Entrepreneurial Business Stronger B2B service
  • 23. Management Focus Schemes & Discounts Cons: Poached Milk Less customer base Lalgoon is a brand that is new into the market with a price lower than Poc; they are targeting the premium segments of Mumbai. Compare to Poc they have a very less customer base in market but they are providing discounts, scheme to attract the customer which a threat to the POC. POC follows the subscription model without any discounts and schemes for customers. SARDA FARM
  • 24. Established-2012 Office-Nasik Presence- Mumbai and Pune Price-80Rs/ litre PROS: Variants of Milk-Raw Milk, Pasteurized skimmed milk, Pasteurized Milk
  • 25. Glass Bottle Discounts and schemes Strong logistics Good customer relations CONS: Limited area coverage Sarda Farms is a family-run milk farm in Nashik and a strong competitor of Poc as they came up with the same concept from “Farm-to-Home” concept. They have low pricing strategy compare to Poc to capture the market and Poc’s customer base. To attract more customers they also provide discounts and scheme if the plan is for a year. They pay at once for a year and so on. They also provide verities of milk to reach to customer as much as possible. Nowadays’ people have knowledge and they keep researching for the brand and its benefits. Some are health conscious for whom they introduced skimmed milk and tonned milk. So they can target all age groups, they are giving the tough competition to Poc. BLISS FRESH Established-2013 Office- Shahapur Presence- Mumbai Price-30Rs/ litre PROS: Variants of Milk-Raw Milk, Pasteurized skimmed milk, Pasteurized Milk Physical appearances Strong logistics Good customer relations CONS:
  • 26. Limited area coverage Tetra pack packaging The only one on the list with a fully organic label, Bliss Fresh was started by a group of friends with a background in banking, with Rajesh Singh at the helm. Bliss Fresh, which was launched in 2013, is in the process of being certified as an organic farm by the Bureau Veritas Group. Their farm in Shahapur has 400 free-range Holstein Friesian cows that feed on green grass fodder and mixed grain grown on site to ensure that it’s free of pesticides, fertilisers and other chemicals. Bliss Fresh’s pasteurised milk has 3.5 per cent fat. It has a slightly thinner texture than the other brands and a pleasantly clean flavour. This is available for Rs30 for a half-litre gable top carton. This product is also available at Nature’s Basket outlets. This product is available at retail store that help it to draw many more customers as physical appearances help it to reach to customers mind.
  • 27. TRUESIP PROS: Variants of Milk-Raw Milk Physical appearances CONS: Limited area coverage Tetra pack packaging Truesip is another brand which has the similar concept like Poc. This brand is also provide milk in a bottle and not so familiar to customers. This brand is a newcomer so it will not be that effective competitor.
  • 29. WORK FLOW MODEL IDENTIFYING TARGETBUILDING/RETAIL STORE SEEK PERMISSION FIX ON DATE& TIME PERSONAL SELLING DOOR TO DOOR/ DATA ENTRIES PROSPECT SPOT CONVERSION ORDER GENERATION SERVICE & PRODUCT FEEDBACK REFERAL
  • 30. SWOT ANALYSIS SWOT Analysis is a method where the organization tries to picturize the scenario of pride of cow brand to understand its strength, weakness, opportunity, threats with the respect to the market. An easy tool to understand and analyses the purpose and actions that to be performed according to the market scenario. These strategies are necessary to formulate for the purpose of marketing, sales, and positioning for the product. Therefore, pride of cow has these strengths where they have a good value proposition; there is no third party intervention in the entire process of POC. Similarly, weakness is poor logistics, low sales force team and opportunity like a new market may attract new companies to enter easily. STRENGHTS VALUE PROPOSITION NO3RD PARTY INTERVENTION RESEGMENTED MARKET ECONOMICSOF SCALE VISIONARYTOPMANAGEMENT PREMIUM SINGLE BREED COWMILK WEAKNESS LOW SALES FORCE TEAM POORPRODUCT DELIVERY LOW TOUCH POINTS LOW BRANDEQUITY LOW CUSTOMER INTERACTION LOW PRODUCT AWARENESS OPPURTUNITY MARKET DEVELOPMENT MARKET PENETRATION AGGRESIVEPUBLIC RELATION CAMPAIGN B2B SERVICE THREATS NEW PLAYER PREMIUM SUBSTITUTE & ALTERNATIVES SWOT ANALYSIS
  • 31. RESEARCH AND ANALYSIS INTRODUCTION The project was defined as “Creating Awareness for Pride of Cows in Mumbai”. Pride of cows is a first of it’s kind premium brand of milk which have a unique concept of providing milk from Farm to Home. Pride of Cows is a six years old brand but not very known to all, as the customer base was developed only through subscription based model. The project was all about creating awareness among people by adopting direct selling promotional activities within 45 days. OBJECTIVE OF THE PROJECT  To create product awareness  To enhance brand visibility through sampling of the product  To study the impact of various promotional methods  To enhance business profitability by registering profitable customer  To undertake surveys and get meaningful insights to device marketing strategies  To increase understanding of consumer buying behaviour  To contribute towards development of POC app. RESEARCH METHODOLOGY Types of Research- Exploratory research used because the motive is to understand the marketing activities that can be adapted creatively and formulate new strategies. So research will be more exploring to get the insight of customer and to understand market broadly.
  • 32. Sampling Methodand Sample- Snowball sampling method is been used as customers are chained through the reference. Word of mouth is mostly used for marketing, with a sample size of 100. So the survey is purely on the existing customer to understand their preference and choices. SOURCES OF DATA Source of primary data- 1. Survey 2. Personal interview and telephonic interviews Sources of secondary data 1. Pride of cow official website 2. Research and markets articles 3. Milkproduction.com DATA COLLECTION INSTRUMENTS Market research is done through filing questionnaire by existing customers giving insights about the product’s quality, timely delivery POPULATION 1. Churn customers 2. Active customers 3. Newly acquired customers after sampling and reference
  • 33. DATA COLLECTION & ANALYSIS PROJECT REPORT The project was aimed at gathering data from the existing customers through survey and then further analysis of that data to identify trends and formulate marketing strategies for the same. Another important reason for conducting surveys individually was to generate quality reference from the existing clients. Word of mouth is primary marketing strategy adopted my pride of cows and hence due to trust factor of their relatives and friends lead generation mechanism was fairly easy. After generating references from the existing clients the following procedure was to convince and convert into sales. Next important aspect of the project was to identify churn customer who have left pride of cows and conduct surveys to identify the reasons behind discontinuing the service & persuading them to join back the service. Another aspect of the project was to device marketing strategies by identifying target segments and locations where promotional activities can be conducted like premium societies, gymnasium, parks, retail outlets etc. for further generating leads and extending the scope of client base in untapped market. Ville Parle(east) , 114, 6% Santa Cruz (E/W), 514, 26% Khar (E/W), 360, 18% Bandra (E/W) , 761, 38% Andheri (E.), 232, 12% Ville Parle (east) Santa Cruz (E/W) Khar (E/W) Bandra (E/W) Andheri (E.)
  • 34. Pride of cow customer base in Mumbai region OVERVIEW OF SALES GENERATED References 55 Society activity 36 retailer activity 10 gym activity 2 joggers park 5 Leaflet distributions 500 Samples were mostly distributed during society activities, but the conversion rate was low as compared to the retail activities, where we promoted our product through direct selling. Ville Parle, Santacruz, Khar and Bandra are the areas which come under Khar depo, in total they have 26 routes. POC already have a large customer base but still there are people who don’t about POC or untapped market waiting to be tapped, following are the activities which were planned and executed to increase our customer base:- MARKETING ACTIVITIES INITIATED & EXECUTED
  • 35. Sr. no Society name 1 Virendra society 2 Windemere bldg. 3 Jolly apt santacruz 4 Joy White house apt 5 Kunal apt khar 6 Parijat apt 7 La mer bldg. 8 Parijat lilavati hosp 9 Captain villa bldg. 10 Hill niketan apt 11 Benmar society 12 Mount Marry apt 13 Blue bird yoga classes Society activities where either we were allowed to sell our product door to door or by creating chaos in compound of society. The selection of premium societies to carry out promotional activities targeting the premium segment customers helped in generating quality leads for the project. Retail activities were also carried out where with the help of store manager or staff, chaos was created and people were informed about the product and samples were given out in return of their contact numbers and address so that we can follow up with them. Prospect was developed by
  • 36. face to face discussion during the activities, highest conversion rate was from retail activities, the reason for such a response can be a good selection of retail with good foot fall, good cooperation with the store staff, time and day’s assigned, social compulsion and etiquettes. Activities were also carried out in Gyms and joggers park to target the health conscious people as the milk just have 3.5% fat. Sr no Retail activity 1. Neelam Foodland store 2. Patel store 3. Champion store 4. Society store Retail stores like Neelam Foodland, Khar and Patel stores, Bandra which are known for their wide range of quality products, people in Gyms and joggers park were interested in high quality products, so there were easy to target. Table no-5.5 Sr no. Joggers park 1. Bandstand joggers park 2. Carter road Doctors and play schools were also targeted, Pride of Cows being a healthy product can be referred by doctors to their patience and direct selling was done in schools annual and sports functions, where parents were informed about our product.
  • 37. SALE ANALYSIS With reference to the graphical sales chart above, maximum sales were generated through reference which is about 40% of the total orders. Evaluating the chart based on the number of days activities were conducted the productivity per activity can be estimated as follows: Sampling 1L Pride of Cows bottles were found to be more efficient comparatively through event activities with 2.15 order/day. Also, the least efficient activity conducted were promotion in societies resulting with a productivity of 15%. The inference that the management can be drawn that maximum sales generation was through references which TOTAL- 231 Avg Sale/Day - 5.13
  • 38. mean word of mouth is highly profitable as compared to sampling activities. Reference is more responsive compare to other activities and feasible also. The cost indulge in this very low as events, retail will pull more money and energy. Even the trust factor can be generated through the reference rather than any other activity. This customer base is a positive impact over the sales for Khar depo. Fig- Customer Base This chart shows the result of the Depo khar which shows increase in customer base by 231. ie 11.68% of growth in customer base in Khar depo. Increase of customer base is the result of Direct selling, as a result litres per day increased from 831 to 888 litres/day. 0 500 1000 1500 2000 2500 Before SIP After SIP Customer Base LPD growth
  • 39. Fig- LPD Growth Above chart shows growth of milk perlitre from 831 to 888 ie. 7.9%. POC should target more of restaurents and cafes for better growth. SPOT VS FOLLOW UP With an impressive sale order of 60 of those were registered as spot enrolment mostly from Retail & Event was condescending. The reason for these other than strong sale skills can be deduce to innovators stage within psychographic, high involvement of the customers throughout the interaction, annoyed and dissatisfied with the current usage of milk, awareness about the product enhancing the cognitive approach in its final decision and above all they loved the product as explained to all interns during the product briefing the product speaks for itself which made the entire sale closing comfortable. Also, an important observation to highlight is even though the activities were performed mostly at residential the spot enrolments 780 800 820 840 860 880 900 Before SIP After SIP LPD Growth LPD Growth 831 888
  • 40. were the least 2, the reason for the above can be expressed as in door to door pitch the involvement is low. Fig-Spot vs follow up A product can only been promoted, in this case sampling, but expecting a sale is less feasible because the person is not under any of the above pressure points discussed, the only factor can been rooted for is if the person has heard about the product before for which the odds are pretty low. 0 10 20 30 40 50 60 70 80 90 RETAIL EVENT RESIDENTIAL REFERRAL 25 7 16 89 28 14 2 SPOT FOLLOW UP
  • 41. PROFITABLE VS VOLUME SALE Fig- profitable vs volume As the sale margin was not disclosed, Profitable sales are personally categorized as Daily and Alternate customers while Value sales are categorized as Thrice, and more than thrice. Higher the usage higher is the revenue generated from a single customer with diminishing overhead cost. Based on the 231 sales that were generated, 39% of it was estimated to be Profitable customers. Usage can only be estimated based on the milk drinkers and frequency of milk consumption in the family. Based on the interaction during the promotion, customers expressed their acceptance of a trial service and then post the evaluation would to freeze their order pattern. An effort must be initiated to basket these customers as a repeated usage customer thus increasing brand loyalty and goodwill. Customers preferred order pattern thrice a week rather than daily purpose. This shows the consumption of family and some of them even ask for one bottle a week. Some are alone so they want to use the product but because of the order pattern they refuse. So some strategic action 0 20 40 60 80 100 120 DAILY THRICE MORE THAN THRICE 78 120 33 Profitable Volume
  • 42. should take place to cater this category of customer as they can donate a good amount of sales for the product. FOLLOW UP RESPONSE Fig- follow ups The chart above shows the follow up response of customers. 18% of people were converted, 15% told to call later, 7% told they were out of town, 22% found it expensive, 21% were not interested, 13% told they will call if they want to start the service, 3% didn’t tried the sample and 6% had other reason like they are travelling or they wanted once a week which was not possible. These were the problems faced during follow ups. 0 5 10 15 20 25 18% 15% 7% 13% 3% 6% 22% 21%
  • 43. SURVEY ANALYSIS Fig - how people come to know about POC This is data is based on the survey done by us to know the customer’s perception, what they think about the product, the quality, packaging, how did they come know about it etc. This survey was mainly done to gain references from the existing customers and also to solve their problems if they had any related to the product or delivery. This data was also used by the company to know about the loopholes and gave them an insight of on what features should company be working upon to increase their customers. The above figure shows the result of first survey question that was to understand the medium from where they got to know about the product, and the highest voted option was references or we could say Word Of Mouth, mostly people use this product because someone in their family or friends have referred it to them, and they found it healthy. 4% 72% 17% 5% 2% Internet Friends/Relatives Events By calls Retail stores HOW DID YOU COME TO KNOW ABOUT POC?
  • 44. Fig - POC consumed by Figure2, it is the second survey question to evaluate who is the consumer of the product and to which group they fall into. This will be a key to understand the consumer choices and also add a note to target customer. To whom the sales person should approach will be inferred by this evaluated data. As we can infer that it’s mostly consumed by small children’s. By survey POC come to know that the customer are mostly using for their small children’s till the age of five. Which is a wrong perception adapted that supposed to be changed. Fig- which other milk brands used by customer other than POC This question is about which milk is consumed by the customer other than the POC and why? This is to understand the competition in current market and the reason behind there usage. 59%23% 14% 4% CONSUMED BY Young kids Teenagers Adults Elders 21% 28% 8% 7% 15% 12% 3% 6% Amul Gokul nestle mother dairy Pouch tetrapacks none others WHICH OTHER MILK IS CONSUMED ?
  • 45. With respect to above it can be inferred that Gokul is the most used brand, because most of the customers find POCexpensive or they don’t belive in the concept of fresh milk and they don’t find any difference in the milk they are using and POC. Some Customers using POC also use other brands because the main reason for using POC is for kids. Repositioning has to be done for the brand and people have to be made aware of the freshness POC is offering and the milk is not only for kids but for every age group, this can only be done by educating people about the benefits of fresh and wholesome milk and what it can do to there body. Fig-packaging Fig-Time Packaging is a very integral part of any product and a reason for liking or disliking the product. POC provides milk in a transparent tamperproof plastic bottle. 54% of the customers like the packaging of POC, 5% of the total customers are dissatisfied by the packaging and the reason is that these bottles are made of plastic. Another survey question was related to delivery timing. Now here 26 % of the total customer base is happy with the delivery timing but 23% are dissatisfied because they want to have their milk before they leave for office or their kids go to school. Every customer has their own requirements related to timing which is kind of difficult to achieve as some asked early morning deliveries or some after nine. This time issues need to be rectify by strong logistic to reach to every customer on their demanded timings. Others were neutral about the services and delivery timing. 54%24% 17% 5% 0% PACKAGING
  • 46. Data shows that customers are really happy with the unique packaging and ease handling of the product. The biggest problem customers faced was where to dispose these bottles. That is one of the biggest reason people didn’t prefer POC. Fig-Quality The above graph shows how much percent of people are satisfied with the quality of product which is 48%.of customers which are extremely dissatisfied or dissatisfied, raise this issue in front of senior executive but because of not getting proper response they stop using POC. . The above graph shows reasons for discontinuing POC, 28% of the total customers discontinued POC because of the service (not getting proper response from CSD or a senior executive when 48% 27% 18% 6% 1%QUALITY Extremly satisfied satisfied neutral dissatisfied Extremly dissatisfied 23% 18% 28% 5% 13% 2% 11% Quality Packaging Service Relocation Billing Mishandled Complaints Other REASONS FOR DISCONTINUING POC
  • 47. they have issues related to the product) And one thing also become clear here some churn customers are happy with the quality and 4 churn customers 1 is extremely dissatisfied, 1 is dissatisfied and might be 2 from neutral churn customers. And other brands are near about Rs 50/- per litres. Customers are not only concerned about price but for that purpose they demanding some discounts and annual subscription schemes. Here the customer perception and there mind set defines that pride of cow’s milk is available for Rs 80/litre and other any ordinary brand are Rs 40/- means 1:2 ratio but the customers are never think about the quality and premium when the price issue comes. we can see that those customers are rated high pride of cow’s milk in terms of overall satisfaction and here they are showing reasons for choosing other brands over pride of cows like taste and quality, taste quality & nutrient value, taste quality & packaging, taste, quality this elements. Here the pride of cow’s milk gets the mix response. When they really face any problem with the pride of cow’s milk brand in terms of any things like services, delivery has been sort out with the very high tactic manners. The reasons for discontinuing were further analysed in detail and again approached to valuable customers with an intention to win them back. A sample bottle were sent to all the churn customers who we had successfully convinced about quality, service improvement and thus to assure them they were given trial samples for three days. We successfully won back 32 customers during our 45 days internship programme. CUSTOMER INSIGHTS
  • 48. 1) To have better coordination between billing department and delivery boys especially when the customers have asked to stop the service for a specific period for being out of town. 2) To have proactive follow ups and rectification mechanism once a wrong bill or a cumulative bill is generated. 3) To customise delivery time as per customer’s requirement without any delay. 4) To have a constant point of contact person accountable for a particular route for customer service. 5) To supply 500ml to suit customer’s daily consumption requirement. 6) Pride of cows has proven to be excellent quality milk however some kids experienced stomach pain, constipation and vomiting hence the quality must be verified. 7) Due to very low bacteria content some housewives faced a problem in curd formation. 8) Milk consumption is reducing due to gradual shift to green tea and becoming vegan. 9) To avoid billing problems pride of cows can initiate swipe machine to avoid any complication. 10) Pride of cows must extend its product line by offering paneer, curd and flavoured milk. 11) Customers are sceptical to change their existing brand of milk as they are a less aware of organic milk benefits hence educating customers is the key to sales. 12) Customers don’t see any difference between the local milk vendors to pride of cows as both provide raw milk home delivery. 13) There is misconception among few customers that this milk is only meant for betterment of kids and hence should be only consumed by them. 14) As the milk is priced at 80, price sensitive customers don’t believe that they are getting value for money. 15) There was seen a contradiction between two segments, one being the premium segment having the purchasing power which were the actual target segment however not willing to buy the product as changing their milk brand was a trivial concern and the other being the non-premium segment however being well informed about the quality of the product and hence willing to invest for the betterment of their family.
  • 49. PROBLEM ANALYSIS Post Purchase Interaction Orientation of the company must be a customer centric approach. After the purchase, the consumer might experience dissonance about their purchase and be alert to information that supports their decision. Marketing communications should supply belief and evaluations that reinforce the consumer’s choice and help him or her understand well about the brand. Thus, the management must monitor post purchase satisfaction and post purchase actions. Also, dissatisfied customers communicate more negative word of mouth than satisfied customers communicating positive word of mouth. 1. Customer Dissatisfaction Based on personal experience and interactions with various stakeholders in my 45 days of internship, complaint about the product quality or taste was hardly raised as the product is PURCHASE POSTPURCHASE DISSONANCE USAGE EVALUATION SATISFIED BRAND LOYAL INCREASED USAGE DISSATIFIED BRAND SWITCH DECREASED SWITCH POST PURCHASE EVALUATION PROCESS
  • 50. superior milk. However to our novelty there were a few customers who complained about not suiting kids’ health and thus causing constipation, stomach pain, vomiting extra. There were also complaints that the consistency of the milk varies asper the season. While on the other hand, the management finds it very difficult to handle and serve the customers in an efficient & effective manner. As Philip Kotler rightly said “Customer Retention is more important than Customer Attraction”, which the management fails to understand due to which churning arises, thus the sales number and the rate of market share slows down as on an average with every 10 customers 4 is churned. The churning results in building pressure to the top management cascading it as sales pressure to the sales force thus hampering the work culture in the organizational as well as. Also “Acquiring new customers can cost 5 to 10 times more than the costs involved in satisfying and retaining current customers” again said by Philip Kotler, for the product to grow in this segment the cycle of churning and gaining new customers must come to an end. 2. Pet Bottling On an average customer’s house, with a product usage rate of 1liter of milk daily, in a year, the customer is left with 365 PET bottles resulting in a distress situation for the customer. While on the other hand the company doesn’t want to collect the bottles and reuse the bottle to maintain its integrity and avoid any complication in the delivery. Alternative approach has been taken by the management which is to be implemented in the future to tackle this problem to collect and use these PET bottles to generated energy to run the plant. 3. Product Ambiguity Words such as PET bottle, Dutch Holstein breed are usually considered as plastic and Jersey breed in the mind of the customers. Issue with availability of the product were also encountered as the product was not marketed and sold as a shelf product but only delivered on subscription basis. To answer the customers in the field the price difference of about a 100% hike was handled rationally and convinced the customer to subscribe for the service.
  • 51. 4. Poor Online Presence The simple fact that all companies are moving from the conventional brick-to-click approach is because their target audience is virtually embedded in the e-world. In case of POC,a great visibility can been attracted to capture the interest of our target audience. Online marketing can be exploited in a tremendous fashion to again consumer interest. Various interactive platforms such as a Facebook, Instagram, and YouTube can be used in the companies’ favour which will also create brand awareness while creating a buzz in the e-world; a good PR interaction can create wonders for the product. 5. Inefficient use of CRM team CRM, as the name suggest Customer Relationship Management must be used to its potential. Other than the current trend of answering inbound calls, CRM team can energised and redirected to connect to customer for receiving feedbacks, contribute to sale through referrals, identifying profitable costumers for better service, answer complaints & complements. CRM team can play a crucial role to build in a relationship bridge between the Brand and the customer. 6. Delivery Issues Milk is the most important commodity to start the day for all Indian family irrespective of the demographic or psychographics. Frequent change in delivery boys and their routes is creating problems within our customers which are the major reason for churning. Another USP of the company which offers customised service delivery backfires because it leads to uneven distribution pattern for the delivery boys and hence chances of faulting tends to increase. Some customers have complained that there hasn’t been a constant delivery times and hence again causes ambiguity of milk delivery. Also there have been complaints that the delivery boys still deliver milk when they have been asked not to for a specific time period as the customers are travelling out of towns. 7. POC intranet prone to misuse
  • 52. The company’s intranet application which is been integrated for employees of POC to manage costumer order and information is being opened for everyone in the sale force to use without any hierarchy restriction. The BDO designated to an area can access the status and data of a BDO of another area, thus can been misused and cause damage in form of loss of working hours and energy to rectify the error. SUGGESTIONS & RECOMMENDATIONS 1. Identified & tapped Target audience Since POC’s launch in 2012, right amount of time & energy has been allocated by the management in order to build a quality customer base. In this last two & half years the company has strived to and position the product in the right segment which has resulted in abundance of satisfied consistent customers further leading to referral and thus increasing the customer base to 4000 customers in Mumbai and Pune. However the company need to work on getting the right target audience just not on the basis on their purchasing power but also on based of awareness and demand for quality products. This can only be done by educating the customers about its premium quality milks which is its point of difference. 2. Not Position Niche Category Priced at 80 rupees/litre the company has tremendously avoided failure by not presented it as a celebrity milk drink and has showcased its feature of ‘Points of difference’ as organic, fresh (8-10 hour age milk), single breed. Even though serving almost all celebrities and elite industrialist of the society, POC is not marketed so as not to confuse the perception of the consumers as a High Net Income (HNI) drink but as a better alternative to current inconsistent and poor quality drink. 3. Discounts or schemes
  • 53. The company has shown courage and confidence by not implementing for a Rapid skimming pricing strategy to cover cost or capture market. The simply reason why the company is not promoting POC with discounts or schemes with the either of the above objective is because it understands that the product is a daily affair and any fluctuation in the price can affect the sentiment of a price sensitive audience base. The financial aid from other star products of Parag Milk Foods Pvt Ltd such as Go cheese and Gowardhan has stood as a backbone for the company and helped POC to sustain all this while. However due to increasing competition from the new entrants in the organic milk segment where they are providing yearly subscriptions discounts, pride of cows should come up with some counter scheme to sustain the completion in long run. 4. Knowing thy Customers In order to rectify the burning issue of churning, an in house customer research must be conducted, to identify the category, preference, interest, suggestion, complaints in order to improve service. Currently, the customer data is minimum and incomplete through which interpretation of any sort cannot be possible. Furthermore, post purchase evaluation must also been initiated to attend and understand the customers, which is currently unknown and only surfaces after customers churn which, further hampers on its brand equity. After gathering data of churn customer there has to be quick rectification mechanism to win back the churn customers which is currently not been implemented. 5. Increase touch points Since the company is currently catering only a smaller audience, feasibility of promoting the product through marketing communication is been chosen wisely but not to its full potential. Below are channels which the company can adopt to create touch points for potential customers to interact and get exposed about the utility and benefit of the product.
  • 54. 6. Sales Target Currently, the company is following a laissez faire approach with its sales target. On an average, a Business Development Officer has to achieve a target of 3 new sign ups per day which is tracked on weekly/monthly basis, based on which the BDO’s is been evaluated. A much efficient evaluation can been incorporated with factors such as Lead generated date, source of lead generated, Inbound calls, source of inbound calls, Number of churned customer, Reason for churning, light usage sale, profitable heavy usage sale, conversion of light users to heavy and other marketing activities initiated and implemented. Targets can be set for each of the above factors, which can provide a better perspective regarding the strengths and weakness of channels and processes involved. An incentive scheme can also been announced to increase motivation amongst the sale force thus may add up to drive up the sales effort and profits. 7. Digital & Offline Marketing activities Our potential customers spends quality of time in the virtual world, a blend of PR & Marketing online activities can create a sensation in an optimum manner which can be directly tracked down PRIDE OF COWS
  • 55. to the sales figure and can further be tracked by the analytics of the webpage. Famous nutritionist, dietician, health magazines and outlets can been approached for their contribution-online and offline to write blogs, conduct seminars, exhibitions and gatherings to touch masses and create a cascading effect which the company can cash on. Also there should be contest for customer interaction and engagements on social networking sites like Facebook, Instagram etc. This will increase its brand visibility and its social media reach. They can post pictures of homemade recipes tried by housewives using pride of cow’s milk thus encouraging them to use poc for more than one reasons. 8. Delivery boys Issue With high attrition rate and poor training in the logistics department the company is facing daily issues in mapping delivery routes. A trend has been generated in which young college students opting for the job, work for 2 hours for two months which fetch them their pocket money. This trend must been brought to an end because for such a premium brand with a daily interaction (probably the first brand of the day the person comes across), disappointment can arise if service is not premium and will affect the functional and aesthetic value surrounding the brand. In order to deal with this, the recruitment of delivery boys could be outsourced and work on commission basis on the completion of the decided probation period. Also to deal with collection of bottles problem, delivery boys can have reverse mechanism by collect the previous day bottles when it comes to deliver new bottle, hence this will solve problem of customers of unwanted bottle collection. 9. Proposed Customer Service Channel An integrated in-house Customer Relationship Management can be used adequately which is being represented in a cyclical flowchart below:
  • 56. Source: Lynda site, shareit site/sales management The objective with this channel is to create a customer service management with periodic interactions between the two C’s (Company & Customer) to improve brand awareness and create multiple touch points for opportunities of brand recall and exposure. Engaging customers in high involvement activities will lead to high customer satisfaction level thus spreading the good word hence adding up to the customer base. 10. Development of a mobile Application The object of mobile app is to solve majority of the problems currently faced by the customers and hence ensure better coordination between customer requirement and customer service offered by the company. The app can have features like payment facility, bill details, and change in delivery time or quantity requirement, product information and details about the farm to increase awareness SIGN UP Conversion 'WELCOME To The FAMILY' CALL Mail & Telephonic INFO BOOKLET Company,Cows,Custo mer Count,Technology, MONTHLY JOURNAL Growth in the sector,Technological Updation,Testimonals,C ertification & Updation Future PlansGREETING SERVICE Customised greetings wishes through tags,mails and calls REFERRAL SCHEME In a month Refer 3 customers & get 3 litres waived off LOYALTY SCHEME Rewarding Profitable customers REFERRALS Tappingon the referral data
  • 57. about the quality standards adopted, recipes that can be made using pride of cow’s milk. These were some of the essential features to be incorporated however as major consumers are kids they can have some kids based games for further engagement, also fun DIY projects of innovative plastic bottles use for children during summers. To generate quality references they can adopt “share if you care “thus benefiting both the customers and the company.
  • 58. KEY LEARNINGS 1. Understanding consumer behaviour- consumer is a king, this is internship help me to understand this myth. Suspecting the customer and understanding their needs in necessity that I have learned in a proper way to suspect the potential customer. 2. Interacting and negotiating with the customers- suspecting the potential customer than to deal with them is a difficult task as all customer are different so it is must to understand them, formulate strategies to deal with them. So that closing a deal will always in our favour. 3. Data collection- collecting the data is crucial for any organisation and even to a normal salesperson. Data will help to analyse and form strategies accordingly. 4. Data analysis- data collection required to analyse and understand the action that needs to be taken. This I have learned through interacting with customer and working on them to serve them politely. 5. Corporate and society tie-ups- pride of cow is a premium product which demand premium customer for this getting permission from all corporate and societies, it’s difficult due to security concern salesperson were prohibited, but how to make your way, this is what this internship has taught me. 6. Acquiring customer- now acquiring customer is not difficult as it was before for me. Now I can easily interact and deal with people. 7. Customer Management- customer management is necessary as every organization need to take care of their customers. POC have same process and it has taught me to deal with customers and manage them with a honest and polite approach 8. Team player-this internship has taught me how to be a team player, as we were a team of four interns, there were difference in opinion, but at the end coordination and cooperation were the key to success.
  • 59. 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 in the retailers. There are about 1.22 billion people in India, with around 120 million cows & buffalos. There is a long tradition of milk production and consumption (based on small units), cooperative structures, and a tradition of selling milk over the counter in the street, milk that consumed fresh. 70% of the population lives in the countryside with only 30% based in cities; however with the trend of urbanization this is changing. 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. India dairy is emerging as a strong consumption story, with the market growing at pace. Probably this trend will gain momentum over the next 4-5 years driven by increasing consumption of value- added products and the formalization of the value chain. The main factors driving growth are increased consumer interest in higher protein diets, greater affordability due to growing disposable incomes, and a rising awareness and availability of dairy through channels such as organized retail and food service segments. Considering all the above information, Pride of Cows has tremendous potential to shake the current milk sector. Currently standing out as a Problem Child with a low market share and low market growth within an established market. The company must announce its arrival with an aggressive growth strategy. Confidently, working close with the product, Pride of Cows will soon be crowned on its company brand portfolio assuming all the strategically move goes right.
  • 60. BIBLIOGRAPHY Mr. DevendraShah,Chairman&Managing Director,ParagMilk Foods.(n.d.).RetrievedAugust20,2016, fromhttp://www.indiainfoline.com/article/research-leader-speak/mr.-devendra-shah-chairman-and- managing-director-parag-milk-foods-37524025_1.html Milkand Dairy ProductsIndiagrowthstatisticsdetailsfigures.(n.d.).RetrievedAugust20, 2016, from http://www.indiastat.com/14/maharashtrastat/agriculture/2/milkanddairyproducts/167/stats.aspx IndiandairyIndustry.(n.d.).RetrievedAugust20,2016, from http://www.aavinmilk.com/dairyprofile.html INDIAN DAIRYINDUSTRY.(n.d.).RetrievedAugust20,2016, from http://www.indianmirror.com/indian- industries/dairy.html http://www.imarcgroup.com/dairy-industry-in-india/ Understandthe Competitive Structure of IndianDairyMarket.(2015). RetrievedAugust20,2016, from http://www.imarcgroup.com/indian-dairy-market DairyIndustryinIndia:2016-2020. (n.d.).RetrievedAugust20, 2016, from http://www.articlesfactory.com/articles/business/dairy-industry-in-india-2016-2020.html 1. Milk IndustryinIndia.(n.d.).RetrievedAugust20, 2016, from http://www.authorstream.com/Presentation/mashrafpaul-1172339-1-milk-industry-india/ CommentsforAnjalisFoodKaleidoscope.(n.d.).RetrievedAugust20, 2016, from http://anjalisfoodkaleidoscope.com/comments/feed Parag Milklaunchespremiummilkbrand'Pride of Cows',worthRs75 perlitre.(n.d.).RetrievedAugust 20, 2016, fromhttp://articles.economictimes.indiatimes.com/2012-08-30/news/33499379_1_parag- milk-foods-devendra-shah-pride MilkqualityinIndia.(n.d.).RetrievedAugust20, 2016, from http://www.milkproduction.com/Library/Editorial-articles/Milk-quality-in-India/