FEATURED, FMCG, FOODS, latest-stories, SECTORS

Parag eyes Rs 15 crore revenue with ‘Pride of Cows’

Off 80
tag-wit-bottle

Parag Milk Foods, which sells its products under Gowardhan and Go brands and owner of Bhagyalaxmi Dairy is eyeing aggressive expansion plans for its premium brand of milk, ‘Pride of Cows’.

Until now available only in South Mumbai, this freshly packaged milk has now been introduced in Pune, with the brand also nursing plans of launching it in the metro cities of Delhi, Ahmedabad and Bangalore in the next one year.

‘Pride of Cows’ milk is produced by Holstein Friesians breed of cows imported from abroad. It claims to offer milk with a high nutritional content bereft of significant amount of bacterial impurities, thereby serving as a healthy alternative.

However, it is the Farm-to-Home concept, on the basis of which the company is looking to score over other dairy brands present in the market. According to Devendra Shah, Chairman, Parag Milk Foods, this is an entirely new concept in the country, and the brand does not face any competition at present. The milk will be delivered directly to consumers’ doorsteps and will not be available in the market through over the counter basis or retail outlets.

In terms of pricing, at Rs 75 per litre, Pride of Cows seems to target the niche consumer segment. Does this luxury tag act as a limiting factor? According to Shah, the high price is justified with the premium look and packaging of the bottle as well as the quality of milk. “If you compare the monthly budget for regular milk and that of Pride of Cows, there is only a difference of around Rs 500-600. It is the high quality that will attract customers,” adds Shah.

To attract consumers and dispel notions about the high price, Parag has been conducting on ground engagement activities and events where consumers can sample the milk. For instance, it organises sporting activities for kids to lure them to their brand. BTL activities remain a prime focus of its brand building and marketing plans and isn’t very aggressive on advertising on the television and print platform. Divulging its marketing spends, Shah says that while 10 per cent of the total revenue was dedicated to marketing in the year 2011, this year will see a higher percentage of 12-15 per cent being spent by the company on marketing.

If the numbers are anything to go by, the milk brand has managed to connect with the residents of Mumbai. It has been able to garner a customer base of around 4,500 in the eight months of its operation and sells roughly 5,000 litres of milk every day. While it targets touching 25,000-30,000 customers in Mumbai in this year, it is looking at creating a base of 5,000 people in the first year of its Pune operations.

With an investment of Rs 30-35 crore in the project so far, the company was able to clock a revenue of around Rs 10-12 crore in 2011-12 and plans to notch it up to Rs 15 crore in this year.

About the author / 

Pitch

Recent Comments

Categories

Recent Images

    Subscribe to Pitch Newsletter

    Select a list:

    Read previous post:
    Kevin Pietersen
    Kevin Pietersen new Citizen brand ambassador

    Japanese watch brand, Citizen, has signed South-African born English cricketer, Kevin Pietersen, as its brand ambassador. Matching Citizen’s 82-year-old heritage...

    Close