Market Growth Dynamics of Cheese

Market Growth Dynamics of Cheese Parag Milk Foods Ltd
“A STUDY ON MARKET GROWTH DYNAMICS OF CHEESE”
At PARAG MILK FOODS
Project Report Submitted in Partial Fulfilment of the requirementsFor the Award ofthe Degree
of
MASTER OF BUSINESS ADMINISTRATION
of
BANGALORE UNIVERSITY
SUBMITTED BY
CHANDRAKANT PAWAR
Reg. No. 14SKCMD034
Under the guidance of
Prof .DR. ANUPAMA NATARAJAN
AIMS Institutes, Bengaluru
Mr Ajith S
Area Sales Manager, Parag Milk Foods Ltd
AIMS INSTITUTES
1ST Cross, 1st Stage, Peenya , Bangalore-560058
(2015-2016)

DECLARATION BY THE STUDENT
I hereby declare that the project entitled “MARKET GROWTH DYNAMICS OF CHEESE ” at Parag
Milk Foods Ltd submitted in partial fulfilment of the requirements for the award of the degree of
MBA at AIMS Institutes, affiliated to Bangalore University, Bangalore, is an authentic work carried
out by me. I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other University or Institute for the award of any other degree or Diploma or
Certificate.
Place: BANGALORE CHANDRAKANT PAWAR
Date: 20/08/2015 (14SKCMD034)

APPENDIX IV
GUIDE CERTIFICATE
This is to certify that the Project Report entitled “Market Growth Dynamics of Cheese” has
been submitted by Mr Chandrakant Pawar (14SKCMD034) in partial fulfilment of the requirements
for the award of Degree of MBA from Bangalore University, Bangalore is a record of work carried
out by him under my guidance.
Place: Bangalore
Date: Signature

APPENDIX V
CERTIFICATE BY EXTERNAL MENTOR
[Under The Seal and Signature]
This is to certify that Mr CHANDRAKANT PAWAR of AIMS INSTITUES has undertaken Project
on the topic “MARKET GROWTH DYNAMICS OF CHEESE ” between July and August is a
record of work carried out by him under my guidance.
Seal &Signature

APPENDIX VI
CERTIFICATE OF ORIGINALITY
(To be given by the Institution on its letterhead)
Date:
This is to certify that the Project report entitled ”MARKET GROWTH DYNAMICS OF
CHEESE”is an original work of Mr. CHANDRAKANT PAWAR; bearing University Register
Number 14SKCMD034 and is being submitted in partial fulfilment for the award of the Master’s
Degree in Business Administration of Bangalore University. The report has not been submitted
earlier either to this University /Institution for the fulfilment of the requirement of any course of
study. Mr CHANDRAKANT PAWAR is guided by Dr ANUPMAMA IYER who is the Faculty
Guide as per the regulations of Bangalore University.
SIGNATURE AND SEAL OF DIRECTOR / PRINCIPAL /HOD

ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for Parag Milk Foods Pvt Ltd,
Bangalore. It has been a great experience for me to undergo my summer training at “Parag Milk
Foods”, which would be possible because of the support of people around me. I would like to extend
my sincere thanks to all of them.
I would like to express my gratitude to all those who gave me the encouragement to complete
this project. I would like to thank my guide Dr. Anupama Director of MBA, College Authorities,
C&PR Cell and for providing me the
opportunity to work with one prestigious organization.
I am highly indebted to Mr.Ajith.S and Mr.Manjunath.B.N of Parag Milk Foods, for their
guidance and constant supervision as well as for providing necessary information regarding the
project & also for their support in completing the project.
I would like to give my special thanks to my parents, their love, support and blessing enabled
me to complete this Project work. My thanks and appreciations also go to my colleague in
developing the project and people who have willingly helped me out with their abilities.

EXECUTIVE SUMMARY
Parag Milk Foods is one India’s largest private diary organisation and the largest producer of
cheese in Asia.
The project basic objectives are to understand the cheese consumption pattern among
consumers and promoting Go and Govardhan brands of Parag Milk Foods in bangalore at the same
time. In today’s competitive world while entering in the market it is very necessary to have good
knowledge of the potential of a particular market. The information regarding the activities of
competitor’s existing in the market so that we can plan our each activity according to that. Also it is
necessary to retain the existing customers apart from attracting the new customers.
The project was aimed to find out various strategies that can be implemented to increase the
sales volume of cheese and increase retail presence of products of Parag Milk foods in Bangalore
region. These strategies were suggested after a research on the milk industry in Bangalore. There was
questionnaire prepared for the consumers to understand their usage pattern.
We encountered a little problem in collecting data as the buyers were reluctant in providing
any kind of information.

CONTENTS
Chapter No Particulars Page No
Chapter 1 Introduction 01
Chapter 2 Industry Profile 02
Chapter 3 Introduction and history of the company 09
Chapter 4 ResearchDesign 28
Chapter 5 Data analysis and Interpretation 32
Chapter 6 Findings of the Research 40
Chapter 7 Suggestionsand recommendations 41
Chapter 8 Conclusion 42
Chapter 9 Learning and Experience 43
Chapter 10 Work Diary 44
Chapter 11 Bibliography 46

AIMS Institutes of Higher Education Page 1
CHAPTER 1
INTRODUCTION
Introduction to study:
A few decades until now, India was more of a ‘butter’ country. Butter finds place in the breakfast of
most urban homes. We could rarely find a cheese block somewhere in the house. Except for the
Indian variety of cottage cheese - Paneer, India is not traditionally a ‘cheese nation’. Cheese was
more or less used for sandwiches, or to make dishes that would go along as evening dishes or
accompaniments to cocktails. Now, the mainstream use of cheese and cheese spreads has increased
in the urban mainstream. Cheese is used as cheese blocks, grated cheese and cheese spreads. With
the growing saturation of cheese consumption in the West and the encouraging successes in other
‘non-cheese’ Asian countries like Japan and China; overseas cheese producers are eyeing the Indian
market for its huge promise. While a few years ago Indians had access to only one type of basic
cheese, several companies have entered the foray and there are multiple cheese types that are
available at the stores.
Title of the study:
The study is made on the changing “Market growth dynamics of cheese market in India”.
Need and relevance of the study:
With changing consumer trends-namely growing incomes, westernization, and urbanization the
demand for cheese is likely to increase and is supposed to grow at the rate of 20%-25% in urban
metros. So it necessary to understand whether companies are identifying these growing trends and
are able to serve the consumers better.

CHAPTER 2
INDUSTRY PROFILE
Indian Diary Industry:
India is the world’s largest producer of dairy products by volume, contributing more than 13% of
world’s total milk production, and it also has the world’s largest dairy herd. As the country consumes
almost all of its own milk production, India was neither an active importer nor an exporter of dairy
products prior to year 2000. However, since the implementation of Operation Flood Programme, the
situation changed significantly and imports of dairy products reduced to very small quantities. From
2001, India has become a net exporter of dairy products and after 2003 India’s dairy import has
dipped while exports have increased at a fast rate. Yet the country’s share in global dairy trade still
remains at minor levels of 0.3 and 0.4 percent for exports and imports respectively. This is due to the
direct consumption of liquid milk by the producer households as well as the demand for processed
dairy products that has increased with the growth of income levels, which have left little dairy
surpluses for export. Nevertheless, India consistently exports specialty products such as casein for
food processing or pharmaceuticals. The Indian dairy sector is different from other dairy producing
countries as India places its emphasis on both cattle and buffalo milk. In 2010, the government and
the National Dairy Development Board have made a National Dairy Plan (NDP) that proposes to
nearly double India’s milk production by 2020. This plan will strive to increase the country’s milk
productivity, improve access to quality feeds and improve farmer access to the organised market.
These goals will be achieved through activities that focus on increasing cooperative membership and
growing the network of milk collection facilities throughout India.
Despite its huge production volume, India nevertheless faces a milk supply gap due to increasing
demand from a growing middle class population. Estimation suggests that Indian dairy production is
growing at a rate of about four percent per year, yet consumer demand is growing at approximately
double that rate. Apart from the rapidly increasing demand for milk and dairy products, other reasons
such as the increased cattle feed cost and low availability of dairy farm labour in the rural areas have
also resulted in increase in the cost of production. On the other hand, the strong pressure from EU to
open up its market as well as the proposed free trade agreement with Australia and New Zealand
may also put India’s dairy sector in the risk of being jeopardised. In order to maintain the
development of its dairy industry, focus needs to be placed on several areas. First, cost of production

has to be reduced through increasing productivity of animals, improve animal health care and
breeding facilities and management of dairy animals. Second, Indian dairy industry needs to further
develop proper dairy production, processing and marketing infrastructure, which is capable of
meeting international quality requirements. Third, India can focus on buffalo milk based speciality
products, such as Mozzarella cheese, in order to meet the needs of the target consumers.
Beyond Milk: Value Added Dairy Products to boost up profits
The time has arrived for dairy players to skim the cream out of the milk business.
Rising consumption coupled with better margins in the value added dairy products (VADPs) are
driving the dairy players to get into the growth and higher profitable trajectory. Change in
demographics and rapid urbanization have resulted into manifold surge in the demand for VADPs.
Milk products such as curd which were largely home products are currently available under various
brands. Due to convenience, health benefits and increased consumerism, milk derivatives like
buttermilk, low fat yogurt and flavored milk are nowadays part of regular consumption.

The traditional way….
For decades, dairy players in India have been engaged in the liquid milk processing activity only.
Backed by operation White Flood in 1970s, the milk industry in India witnessed the first wave of
development in the milk production which gave India its status of the largest milk producer in the
world.
This was spearheaded by the ‘Co-operatives model’ which was supported by the GoI. Ownership
being with the farmers instilled trust among the member milk producers in the cooperative model,
which also ensured transparent returns. In addition, cooperatives also provided various services like
cattle vaccination, cattle insurance, artificial insemination, installation of coolers at village level etc
to improve productivity.
Further, there was minimal involvement of private players in the industry as approximately 80% of
the retail price of the liquid milk went back to the farmers leading to low operating margins (4-5%).
This was despite the consistent upsurge in the retail prices of the liquid milk. Consequently, the dairy
companies were left with insufficient internal funds to plough back into the operations for adoption
of modern technologies or development of milk variants.
The above reasons coupled with factors such as evolving tastes and preferences, higher affordability,
etc, lead to the entities venturing into the VADP segment for better profitability.
Going the creamy way….
Over the past decade, significant transformation took place in the Indian demographic space which
led to heightened consumer interest in VADPs. This shift in the dynamics of the industry proved
beneficial for the manufacturers since margins in VADPs are more than double the margins in the
liquid milk segment. The profitability in liquid milk space ranges from 4-5%, whereas the
profitability in VADPs ranges from 12-18%, attracting private participation in the industry.
As per the industry estimates, the share of VADP in the milk and milk derivatives segment is
growing currently at around 25% every year and is expected to grow at the same rate until 2019-20.
Product innovations are likely to accelerate India’s dairy market which is anticipated to improve
industry margins by attaining greater scale, higher capacity use and an increasing contribution from

new milk variants. Further, the development of processing and packaging technology along with
improvement in retail and cold storage infrastructure has increased the shelf life of dairy products.
….the growth trajectory
As per NDDB, the Indian dairy industry is all set to experience high growth rates in the next eight
years with demand likely to reach 200 million tonnes by 2022 from 132 million tonnes in 2013.
Presently, only 20% of the milk production comes from the organized sector comprising co-
operatives and private dairies. The paramount factors driving the growth in the dairy sector include
rising disposable incomes, advent of nuclear families and fast/instant food gaining ground in India.
Other factors such as structural changes in food habits, expansion of fast food chains and popularity
of pizzas and pastas aided the usage of milk variants of mozzarella cheese, processed cheese and
flavored milk etc.
Increasing participation from the private sector….
Consumer preference towards VADPs is taking forward the dairy sector. Besides brown-field/ green-
field expansion, global dairy companies too are venturing into milk derivatives business in this part
of the world.
The most recent one is the 100% acquisition of Tirumala Milk Products Pvt Ltd by GroupeLactalis
SA, France, one of the largest dairy players in the world. Another French dairy major Danone has
also increased its presence in the Indian dairy sector with slew of product launches such as flavoured
curd, yoghurt etc.

Other investments include Nestle India’s acquisition of 26% stake in Indocon Agro and Allied
Activities Pvt
Ltd and Hatsun Agro Products Ltd acquiring 100% stake in Jyothi Dairy Pvt Ltd.
Companies such as Parag Milk Foods Pvt Ltd, Prabhat Dairy Pvt Ltd have augmented their
capacities in the recent past to meet the increased demand of milk products.
….drawing investors’ attention
India consumption story and diversification by dairy players into VADPs are drawing interests of
investors which have led to surge in the PE deals.
The prominent deals include investment by IDFC and MotilalOswal in Parag Milk Food Pvt Ltd,
Rabo bank group and India Agribusiness Fund in Prabhat Dairy Pvt Ltd, IFC into Modern Dairies
Ltd and Blackriver Investment in Dolda Dairy Ltd.
In one of the most recent investments, Fidelity Growth Partners, India, along with participation of the
existing social venture investor, Aavishkaar, have invested in Odisha-based Milk Mantra Dairy Pvt
Ltd. Recent deals in the sector are the indication that the investors perceive value in the deals and see
growth prospects in the Indian dairy space.
Right product mix likely to have a positive impact on the credit profile of dairy companies
traditionally, the credit risk profile of dairy companies was characterized by low profitability and
moderate liquidity. The dairy companies rated by CARE are largely in the BBB or BB category
(refer the graph below) primarily on account of moderate solvency profile.
However, Mother Dairy Fruit And Vegetable Private Ltd, Co-operatives associated with Gujarat
Cooperative Milk Marketing Federation and some private dairies are in the ‘AA’ and ‘A’ rating
category on account of their superior procurement and marketing channels and high share of VADPs
in product portfolio. During FY14, the credit profile of CARE rated dairy companies have broadly
remained stable.

The entities with the right product mix of liquid milk and VADPs are expected to have better
profitability and solvency parameters. Consequently, there is a high possibility of improvement in
the credit profiles of such companies given the robust milk procurement and distribution system.
Cheese: the next big market in India
Among the processed dairy products, the most promising segment both in terms of consumer
demand and business profitability is the cheese segment. Traditionally, India is not a cheese-
consuming nation as the Indian consumer’s palate has been adapted to the softer Indian variant of
cheese called paneer. But, in recent years, given the magnitude of the demand from Indian
consumers, global industry experts predict that India is the next big market in terms of cheese
consumption. This forecast also accounts for the fact that, although Europe and North America are
the primary cheese markets today, a saturation therein is forcing suppliers to look elsewhere, to such
currently major importers as Japan and Russia, and to developing markets like India.
The Indian cheese market is presently worth around USD 237 mn, but is expected to grow at roughly
15-20 percent annually. Product-wise, the global market deals in almost 3,000 varieties of cheese,
whereas in India only about 40-45 variants are being marketed, presenting much room for the
market’s expansion. By industry estimates, the current household penetration in terms of cheese
consumption is less than 7-8 percent. The per capita consumption of cheese in India is a mere 200
gm per year in contrast to the global average of 7 kg per annum; the average for urban India,
however, is 700 gm per person. Geographically, the top six cities consume approximately 60 percent
of all the cheese sold in India.

In India, the processed cheese market forms almost 45 percent of the total market that is likely to
grow a higher-than-average CAGR of around 25 percent, which includes all spreads, cubes, slices,
tins, slabs, etc. Within the processed cheese segment, around 60 percent of the market is dominated
by un-spreadable processed cheese. The segment is well organised, comprises regional, Indian, and
international players, and is registering high levels of entrepreneurial activity. On the other hand, the
unprocessed cheese market is largely associated with the soft cheese category in India, usually
associated with paneer. The traditional soft cheese constitutes over 55 percent of the total market,
with only a small fraction thereof being contributed by the organised sector and is expected to
continually form the major chunk, given the Indian consumer’s behaviour, for years to come.

CHAPTER 3
INTRODUCTION AND HISTORY OF COMPANY
INTRODUCTION
Gowardhan, founded by Parag Milk and Milk Products Pvt. Ltd in 1992, is one of India's
largest private dairies, with an output capacity of 1,000,000 liters per day.
Located in a lush green village called Manchar in Maharashtra (60 km from Pune), and also
owns the largest cow farm in India as well as Asia's largest cheese plant.
We are an ISO 9000 and AGMARK certified company, committed to international standards
of product quality. Our product portfolio includes Skim Milk Powder, Whole Milk Powder, Ghee,
Processed Cheese, Butter, Dahi, proprietary foods like Dairy Whitener and Jamun Mix, Govardhan
Mix powder under the brand names of "Gowardhan" and 'Go' and all made from 100% fresh cow
milk.
A dairy plant consist of all manufacturing section used for milk treatment and processing
begins with milk reception and ending with dispatch of the finished products. They operate within
the framework of the milk regulation and consist of a production program and regulation, flow sheet,
energy flow sheet and functional descriptive.
The Genesis: He had a "Vision" to set up institution to help the famous of near village to
grow economically. He believed in this vision of faluire as he conceptualized marketing of
successful milk which was unused by the farming community to the village with his scientific way
and the political to increase milk production, he led to the step to his dream "PARAG MILK”.
Thus the pure intension of the entrepreneurship of Shri.Devendra Shah, PARAG MILK &
MILK Products Pvt. Ltd. is one of the most popular dairy in the state of Maharashtra. It is located on
NH 50, Pune-Nashik highway, 65 km from industrial city Pune, near Awasariphata at western of
Mancher. The factory spread over an area of 8 acres. The company hosts plant and machinery
supplied and erected by the world leaders "Alfa-Laval" .Initially the plant was started with a
handling capacity of 30.000 Liters/day. At present the dairy handle milk upto 8 Lakhs Liter/day in
lean season. It has an annual growth of 50%.

Parag milk is a multi-products dairy plant manufacturing different milk products like Ghee,
Butter, Dahi, Chass, Liquid-milk, Skim Milk Powder, Whole Milk Powder, Dairy Whitener, Real
Milk Powder, Cheese ,GulamJGovardhann ,UHT Milk, Cheese(Cheddar cheese, Process cheese,
Mozzarella cheese).It is an ISO-9001 HACCP certified company. The brand name of is
"GOWRDHAN" Company also has the certificate of MMPORC No.310/r-MPO/2003.
Vision:
Infrastructure & Technology
Our commitment to quality and innovation has resulted in huge investments in infrastructure
and technology. Our integrated dairy and cow farm at Manchar, is rapidly scaling up to cater to the
ever expanding circle of customers in India, who seek all-natural, wholesome and delicious dairy
products.
Dairy Plant, Manchar, Pune
The extensive ranges of their products are processed at this ultra modern dairy. The dairy
plant is fully automated, of international standards and equipped with the best European technology.
Right from reception of milk to the finished product, we maintain strict no-human-contact through
the entire manufacturing process. The plant churns out 1,000,000 litres of milk per day, has an output
capacity upto 10 MT of butter, 25 MT of ghee and 10 MT of dahi (yoghurt) and 65 MT of milk
powder.
The cheese plant with a production capacity of 40 MT, it's one of the only two facilities in
Asia with UHT technology. The equipment, imported from Stephan Machinery Germany, pioneers
in cheese processing equipment, allows the UHT treated cheese to be stored in ambient condition
without refrigeration up to a period of 6 months in tropical countries like India. The company is
readying itself to flood the national markets with its UHT treated, superior quality cheese which will

be available in a variety of forms such as slices, wedges spreads and a range of exciting flavours
under a new brand name, Go.
DAIRY FARM
Gowardhan manufactures dairy products that are not just 100% natural, but also lighter and
rich in calcium. That's because the milk, procured from its own cow farm - the largest in Asia - is
100% natural cow's milk. What's more is the use of latest European technology in our manufacturing
units ensures the superior quality and freshness of their products, giving them the unique Gowardhan
taste and flavors.
The plant have the dairy farm also it have nearly about 2500 cows. Each cow gives milks
about 20 to 25 Liter/day.

SWOT ANALYSIS
STRENGTHS:
 It has a strong brand image in West and North India.
 Strong network of milk suppliers.
 Strong supply-chain.
 Loyal customers.
 The organization enjoys the goodwill of customers and distributors
 It maintains quality .It is certified by ISO 9000 and 15000 HACCP.
 Go practices almost zero level inventory and just in time production
 The organization has an exclusive department for information sharing and co-ordination
of activities among various departments through local area network.
 It provides the means of livelihood to several dairy farmers through self-employment.
 Has one of Asia’s largest cheese plant .
 Pioneer of diary tourism in India.
WEAKNESS:
 Lack of effective media advertising.
 No proper distribution in south India
 No legal advisory department.
 Price is high for some of the qualitative products.

OPPORTUNITIES:
 Expansion in to the other states to top market
 Can maintain and improve the quality to build customer’s confidence.
 Can tap un-covered market by effective advertising in the electronic media
 Organization has the potential to diversify into various related business like baked food
items.
 It can install enterprise resource planning to integrate all its stake holders so that it can
operate effectively and economically with higher efficiency.
 Export of milk powder, cheese can be done.
THREATS:
 Facing a severe competition from the other major brands & new entrants
 Competitors are major threats to organization. It fails with competitors in advertisement
and promotion because the policy relating to advertisement and promotion lies with the
KMF.
 Change in labour laws.
 Increasing of product price recently probable to loose its own market share in the market.

PRODUCT PROFILE
We are offering our clients a wide range of milk products. All our products are processed under
hygienic conditions, so that it is safe for our clients to consume. As the whole process is mechanized,
it keep the products safe from the germs and contaminations spreading by hands. As a result of the
unmatched quality of our products, these are demanded in various world famous companies in
various regions of the world.
The range includes the following products: Gowardhan Milk
 Gowardhan Gold
Pasteurized and Homogenized from 100% pure cow’s milk, Gowardhan Gold packs a major
nutritional punch for mega – active people! Its Rich calcium content promises stronger bones. It Has
a Rich Creamy Taste and texture that both children and adults will love.
Gold milk is available in 500 ml and 1 liter packets.

 Gowardhan Fresh
Homogenized and Pasteurized toned milk, Made from 1005 pure cow’s milk, High calcium content,
store under refrigeration at 4’C , Available in 250ml, 500ml and 1liter.
 Gowrdhan Premium Ghee
100% pure clarified milk fat, sweet aroma of pure ghee, no added color, store at ambient
temperature, Available in poly pack 200ml,500ml,and 1liter,Ghee Jar 200ml,500ml, 1ltr and 5ltr, BB
100 and 200ml, RT500ml and 1ltr, Tin 5ltr and 15kg.

 Gowardhan Butter
Pasteurized Table butter & unsalted butter, Made from modern continuous butter making machines,
100% natural, no added colors, Low salt content, Mild taste and firm consistency, store under
refrigeration at4’c , Available in table butter 100g,500g,and 20kg, unsalted butter 500g and 20kg.

 Gowardhan Processed Cheese
Blends of Cheddar cheese of different age, Firm consistency and smooth texture, High melting point,
Store under refrigeration at 4’C , Available in 200g, 400g, and 1kg.
Blends of Cheddar cheese of different age, firm consistency and smooth texture, High melting point,
Store under refrigeration at 4’c , Available in 200g, 400g, and 1kg.

 Go Mozzarella Cheese
Made from pasteurized cow milk, using Italian technology, Excellent stretch ability, High
melting point, Store at-18’C , available in 200g, 1kg, 2.5kg, Diced available 2kg.
Mozzarella Cheese Shredded:
Available in 500g, 1kg, and 2kg, also available in Mozzarella Blend with Cheddar in 2kg.
 Gowardhan Dairy Whitener
Contains 18% fat, Rich & smooth taste, Sweetened powder, Made from partially skimmed spray
dried milk, store at ambient temperature, available in pouches 16g, 32g, 500g, 1kg, 10kg, jar and
25kg bag.

 GowardhanGulabJamun Mix
 Gowardhan Trim Dahi
 Gowardhan Fresh 'n' Thick Dahi
Made from Pasteurized toned milk and active culture , Contains, 3% fat, Thick and natural taste, 0%
cholesterol ,Store under refrigeration at 4’C , Available in 80g, 200g, 400g,1kg, and 2kg.

 Gowardhan Chass
 Cheddar Cheese
Traditionally aged over 3months, Rich and natural taste, Store under refrigeration at 4’C, Available
in block 1kg, 2.5kg, 20kg, and Diced kg.

 Go Topp up
Milk based instant Energy Drink (charge up!) , 10% extra proteins , Made from 100% cow’s
milk, unique taste, Distinct Indian flavors: Rose , Mango, Elaichi, Strawberry, Butterscotch
&Pista , convenient Ring crown pull cap, long shelf life of 6 months at room temperature
available in 200/ 180ml glass bottles.

 Creamy Cheese Spread
 Go Cheezooz

 Pizza Cheese
Blend of Mozzarella and Cheddar cheese, Firm and smooth texture, High melting point,
excellent strechability, Store under refrigeration at 4’C, Available in 200g and 1kg.
Cheese Shredded
Available in 500g, 1kg, and 2kg, Also available in Mozzarella Blend with Cheddar in 2kg.

 GO Slice Cheese
Made from processed Cheddar cheese, World’s best German UHT technology ensures longer shelf
life, Rich and natural taste, High calcium content, Store under refrigeration at 4’C , Available in 40g,
100g, 200g, 47g, and 750g.
 GO FRESH CREAM
Low fat cream, 25%, Made from 100% pure cow’s milk, unique taste, All-purpose cream, ideal for
tea, coffee, cakes, truffles, pastries, fruit, salads and favorite. Indian curries, Clean flavor and free
flowing, long shelf life of 6 months when stored at ambient temperature, Available in 200ml and 1ltr
UHT bricks.

 GO Butter milk
Traditional Indian drink with spices provides a lactic taste with thirst quenching qualities.
Garnished with Ginger, Salt, and Jeera.
Ideal replacement for carbonated beverages , ideal appetizer as well, as being pro-biotic, aids in
digestion and prevents gastri ailments, shelf –life; 10days when stored below 4’C for pouches, 180
days when stored in ambient conditions for UHT bricks, Available in plain & spicy variants, pouch
200ml and 1ltr,UHT brick 200ml and 1ltr, UHT fino 200ml.
 GO PANEER
Soft , fresh and easy to cut into pieces, High in calcium and protein , Low fat content , store
under refrigeration at 4’C , shelf life 75 days, Available in block 100g, 200g, 500g and 1kg,
Diced 200g and 1kg.

 GO YOGHURT
Made from pasteurized toned milk and active culture , come in 8 flavor’s – strawberry,
Mango, pineapple, Mixed Berry, Lychee, Guava ,Vanilla, and Kesar, Contains 2.7%fat,
Contains 10%fruit, Rich and natural taste, to be store under refrigeration at 4’C.
Available in 80g.

 Go Milk
Double toned milk, 100% natural, 0% preservatives , Extra protein & calcium , Made from cow’s
milk, shelf life 6 months, store at ambient temperature , Available in tetra packs 200ml and 1ltr, Fino
packs 200ml and 500ml ( shelf life 3 months ), unique flip top cap.
Some of the features of our products are as follows:
 Low fat content
 Longer preserving time
 Smooth texture
 Easily spreadable
 Fast melting capacity
 Free from contamination
 Fresh Nutritious

Chapter 4
RESEARCH DESIGN
PROBLEM STATEMENT
“Market growth dynamics of the Cheese Market”
1. OBJECTIVES OF THE STUDY
The study was undertaken by keeping the following objective in the mind
1. To find the market penetration of cheese products and Parag Milk products among
consumers.
2. To understand the preference pattern of the consumers ’.
3. To find the factors influencing the buying decision.
2. SCOPE OF PROJECT
The study carried out in Malleshwaram and Jayanagar regions of Bangalore city so, its scope is
mainly limited to that area only.
 It gives information about the Parag’s current market situation.
 It gives information about the cheese usage pattern among consumers.
 It gives information about the consumer mindset while making a purchase
decision.
 It gives information about the consumer perception towards the brand and its
competitors
 It will help the brand serve consumer in better manner

RESEARCH METHODOLOGY
RESEARCHDESIGN FOLLOWED
Descriptive Research is the research method used because descriptive studies embrace a large
proportion of market research. The purpose is to provide an accurate snapshot of some aspect of the
market environment. Descriptive research is more rigid than exploratory research and seeks to
describe users of a product, determine the proportion of the population that uses a product, or predict
future demand for a product. As opposed to exploratory research, descriptive research should define
questions, people surveyed, and the method of analysis prior to beginning data collection. In other
words, who, what, where, when, why, and how aspects of the research should be defined.
SAMPLING:-
SAMPLING TECHNIQUE USED
In this project the technique of sampling used was Judgment sampling. Judgment sampling
involves the choice of subjects who are most advantageously placed or in the best position to provide
the information required.
SAMPLE UNIT
In this project case sample were the consumers who made retail purchase at
Malleshwaram and Jayanagar region of Bangalore city & the aim was to know the what diary
products they’ve been using and the brands.
SAMPLE SIZE: 60

DATA COLLECTION TECHNIQUES
 SOURCES OF DATA
PRIMARY DATA
To collect primary data from the consumer Questionnaires were used. Questionnaire was
prepared very carefully so that it may prove to be effective in collecting the right information.
SECONDARY DATA
Secondary data collected from different website. This secondary data formed the conceptual
background for the project. This secondary data was compared with the primary data collected in
area.
RESEARCH INSTRUMENT
The research instrument used in the project was Questionnaire to collect primary information,
it provided flexibility by using more close ended and few open ended questions.
METHOD OF DATA COLLECTION
Information was collected by personally contacting consumers through interviews.

LIMITATIONS OF THE RESEARCH
 The survey is limited only to the regions of Malleshwaram and Jayanagar areas of Bangalore
city.
 Time period of the project was 5 weeks, which may not be enough to understand the whole
market.
 Respondents hesitate to give true response to question.

CHAPTER 5
DATA ANALYSIS AND INTERPRETATION
1. Cheese usage
Particulars Respondents
Yes 45
No 15
Total 60
Interpretation: 75% of the total respondents have used cheese at home
Yes
75%
No
25%
Responses

2. Frequency of usage
Respondents
Regularly 15
Occasionally 30
Never 15
Total 60
Interpretation : Only 25% of the respondents used cheese regularly and 50% occasionally
Regularly
25%
Occasionally
50%
Never
25%
0%
Responses

3. Different types of cheese known
Cheese type Responses
Processed 40
Mozzarella 25
Cheddar 17
Parmesan 04
Others 03
Interpretation : Processed cheese is the most widely known cheese type among consumer
0
5
10
15
20
25
30
35
40
45
Processed Mozzarella Cheddar Parmesan Other
Responses

3.Most widely used cheese product among consumers
Respondents
Cheese slices 39
Cheese Spreads 09
Cheese Blocks 12
Total 60
Interpretation : Cheese slices is most used form of cheese product
Cheese Slices
65%
Cheese Spreads
15%
Cheese Blocks
20%

4. Place of purchase
Place Responses
Kirana store 20
Departmental store ( Metro/Big Bazaar) 40
Total 60
Interpretation: 57% of the consumers prefer buying from departmental store such Metro cash and
carry, Reliance fresh, More, Big bazaar and others.
Kirana store
33%
departmental store
67%

5. Most preferred cheese brand
Responses
Amul 35
Go 10
Milky Mist 10
Britannia 05
Total 60
Interpretation: Amul is the most preferred cheese brand among consumers
amul
58%Go
17%
Milky mist
17%
Britannia
8%

6. Cheese preference in family
Particulars Responses
Children 45
Adults 05
Everyone 10
Total 60
Interpretation: Cheese is mostly preferred by children in 75% of the family
Children
75%
Adults
8%
Everyone
17%

Other Findings :
1) Most of the consumers did not have any knowledge regarding different varieties of
cheese available
2) Many did not how and when to use cheese
3) Most use cheese in sandwiches and pizzas and think it cannot be used with Indian
dishes

CHAPTER 6
FINDINGS OF THE RESEARCH
From the survey conducted and interacting with various consumers I came to know that the
cheese usage among the consumers is pretty low and people had little or no knowledge about
different varieties of cheese and how to use them. Consumers mainly bought cheese slices and
cheese blocks for sandwiches and pizzas and had no idea of how to use it or pair it with other dishes .
The main consumers of cheese in the family are the children and most thought its not healthy.

CHAPTER 8
SUGGESTIONS AND RECOMMENDATIONS
As consumers are continuously gaining exposure to different varieties of cuisine and are
ready to try and experiment with different varieties of dishes especially foreign cuisine and as the
trend is going to continue, it is going to provide to huge opportunity for Parag Milk Foods to be a
part of this trend especially in the cheese market since only 1% of the total dairy sales comes from
cheese.
These are some suggestions and recommendations, I think will help Parag Milk foods
 Govardhan/Go products are relatively less known brands in south India, so they should
educate and generate awareness of their existence
 Company should spend more on digital marketing since there presence on social media sites
and the engagement with consumers is pretty low
 Company should do more of content marketing,
 Increase their presence in modern retail formats
 Educate consumers about the varieties of cheeses and their usage
 The company should position its Cheese spreads and cheese sauces as an alternative to
ketchups and jams
 Should do product placements on cookery shows
 Increase ATL advertising

CHAPTER 8
CONCLUSION
The value sales of cheese is about to grow at CAGR of 13% at constant 2014 prices over the
forecast period. The increased availability and knowledge of cheese varieties like mozzarella and
cheddar, coupled with the growing awareness about the usage is likely to drive further growth.
However, the popularity of unconventional cheese variants would remain largely restricted to
urban areas like Bangalore, Mumbai and Delhi. With the going trends Parag Milk Foods have
got their product mix right and should keep its focus on value added products and make the most
of this growing trend among consumers looking for new experiences.

CHAPTER 9
LEARNING AND EXPERIENCE
The five weeks of internship period helped me gain a lot of insights into how a organisation is
managed. Some of the major learning’s I got from the work I was assigned
 It made me understand the importance of supply chain and how crucial it is for Diary
Industry .
 It gave me an understanding of how to approach a client and convince him to make a
purchase, which also helped in improve my communication skills.
 It gave me better understanding of retailing concepts like Point of Purchase(POP) , Visual
merchandising and shelf space allocation.

CHAPTER 10
WORK DONE DIARY
Week Dates Work Carried out Initials of Co-
Guide
Signature of Faculty
Guide
I 13/07/2015
To
18/07/2015
Orientation Mr Ajith S
II 20/07/2015
To
25/07/2015
Market survey and lead
generation
Mr Ajith S
III 27/05/2015
To
01/08/2015
Lead conversion Mr Ajith S
IV 03/08/2015
To
09/08/2015
Sample distribution to
clients
Mr Ajith S
V 11/08/2015
To
15/08/2015
Survey data analysis and
report preparation
Mr Ajith S

Questionnaire
1.Name:_____________________ 2.Profession: _________________________
3. Age: ______________________ 4. Contact details : _____________________
5. Do you use cheese at home
a. yes[] b.no []
6. How frequently do you use cheese at home?
a. Regularly [] b. Occasionally [] c. Never []
7. Which type of cheese product do you buy?
a. Cheese Slices [] b. Cheese spreads [] c. Cheese Blocks []
8. Where do you purchase from cheese
a. Kirana store [] b. Departmental store []
9. Types of Cheese known
a. Processed [] b. Mozzarella[] c. Cheddar [] d. Parmesan [] e. Others [] __________
10. Most Preferred Cheese brand
a. Amul [] b. Go [] c. Milky mist [] d. Britannia e. others__________
11. Who prefers cheese in your family
a. Children [] b. adults [] c. everyone []

CHAPTER 11
BIBLIOGRAPHY
Books
Marketing Management by Philip Kotler
Websites
http://www.paragmilkfoods.com
http://www.gowardhanindia.com
http://www.gocheese.com
http://indiamicrofinance.com/indian-dairy-industry-report-2014-pdf.html
http://www.indiaretailing.com/FoodGrocer/7/42/46/10104
http://www.euromonitor.com/cheese-in-india/report

Market Growth Dynamics of Cheese

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