“COMPETITOR ANALYSIS & EFFECTIVENESS OF

SUPPLY CHAIN MANAGEMENT OF OMFED”

Submitted By:

KASHINATH HANSDAH
Roll No : –1541303030
Batch :– 2015-2018

Project Report submitted in partial fulfilment for the degree of

“Bachelor of Business Administration” (BBA)

(Faculty Of management science)

Internal Guide:
External Guide:

Mr. Ganesh Prasad Podha Dr. Manoranjan Dash

(Asst. Professor, IBCS,
(Marketing In-charge OMFED) S’o’A University)

INSTITUTE OF BUSINESS & COMPUTER STUDIES (IBCS)

 CERTIFICATE
This is to certify that Mr. KASHINATH HANSDAH having Regd No- 1541303030
has done this research project work on “COMPETITOR ANALYSIS AND
EFFECTIVENESS OF SUPPLY CHAIN MANAGEMENT OF OMFED” and submitted the
report in partial fulfilment for the degree of Master of Business Administration to
INSTITUTE OF BUSINESS & COMPUTER STUDIES, SIKSHA ‘O’ ANUSANDHAN
UNIVERSITY, BHUBANESWAR under my supervision and guidance.

His report is the record of original work done by him. To the best of my knowledge,
no part of the content of this report has been submitted for any degree by him or
anybody else to any other University or Institution.

Date : -

Place : - Signature

(Dr. Manoranjan Dash)

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 DECLARATION

I undersigned, Mr KASHIANTH HANSDAH, the student of INSTITUTE OF BUSINESS &

COMPUTER STUDIES (IBCS), SIKSHA ‘O’ ANUSANDHAN UNIVERSITY, BHUBANESWAR declare and
confirm that work done by me is original and true to the best of my knowledge & beliefs.

I declare that this project is my own preparation and not copied or extracted from anywhere
else. It is the result of my efforts and dedication Moreover; it has been approved by the management
of OMFED, ROURKELA. And does not contain any material objectionable to them.

This summer project report is just a part of INSTITUTE OF BUSINESS & COMPUTER STUDIES
(IBCS), SIKSHA ‘O’ ANUSANDHAN UNIVERSITY, BHUBANESWAR and will not be used elsewhere.

Place:

Date:

Signature:

(Kashinath Hansdah )

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 PREFACE
This report is prepared at Orissa State Cooperative Milk Producers’ Federation
Ltd.(OMFED), ROURKELA Unit on functional areas of OMFED ROURKELA . It contains the brief
description of the company and all its departments. It also covers the different functions performed
in different departments at OMFED , ROURKELA.

The report contains the details regarding the information related to

COMPETITOR ANALYSIS AND EFFECTIVENESS OF SUPPLY CHAIN MANAGEMENT Of OMFED
,ROURKELA. In this report it is mentioned that how we can increase the market share of OMFED ,
ROURKELA.

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 ACKNOWLEDGMENT

I student of INSTITUTE OF BUSINESS & COMPUTER STUDIES (IBCS), SIKSHA ‘O’

ANUSANDHAN UNIVERSITY, BHUBANESWAR are very grateful to IFFCO PARADEEP for providing
us the base to complete our project.

I am thankful to Mr. BASANTA KUMAR MISHRA (Sr. G.M.), for providing us an opportunity
to conduct training program as a part of study and essential for our bright prospects.

I deeply express our gratitude towards Mr.K.C.PAUL (plant manager) for giving us the
maximum co-operation without which, the training would have been impossible. And also for
preparing training schedule for me.

I take this opportunity to express our sincere appreciation and gratitude to Mr. GANESH
PRASAD PODHA (MARKETING INCHARGE,ROURKELA) whose friendly co-operation made this
analysis and study of project data information regarding OMFED, ROURKELA a more fascinating and
interesting experience

I express our sincere thanks to all employees of MARKETING Department of OMFED,

ROURKELA who briefed us procedures and practices in the sections sparing time from their heavy
work schedule and busy work hours.

I would thank to my University guide DR. MANORANJAN DASH (Asst. Professor), IBCS,
S’O’A University, Bhubaneswar without his valuable guide and support it would not have been
possible to carry out my training.

Kashinath Hansdah

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 EXECUTIVE SUMMARY

The Odisha State Co-operative Milk Producers’ Federation Ltd. (OMFED) is the leading
organised milk producers of Odisha. Its main activities include promoting production , procurement
, processing , and marketing of milk and milk products for economic development of the rural
farming community of Odisha.

This is report is a study of “ COMPETITOR ANALYSIS AND EFFECTIVENESS OF SUPPLY

CHAIN MANAGEMENT Of OMFED “.The first part of my project involves the study of distributors
allocated to me Identification of their problem areas and helping them in order to increase sale.
For this I used the method of personal interviews and questionnaires.

At the same time , they were being made aware of the incremental scheme of OMFED for
the retailers. A study of retailers was conducted to better understand the grievances and
identify the gaps. For this I visited around 50 outlets in the area ,i.e, in Balasore , Bhadrak ,
Baripada and spoke to them. I was also supposed to find out new retail outlets and convince
them to sell OMFED milk & other products of OMFED by showing them the opportunity of
getting attached with a big FMCG brand like OMFED and increase the customer base. Despite of
summer and low demand I was successful in persuading people and a number of new retail sale
points were developed and the sale was increased. The second part of my internship was the
study of consumer attitude towards OMFED milk & other products of OMFED or more
specifically the factors affecting the decision of purchase of milk . For this a sample of 100
consumers was taken and a factor analysis was carried on to find the decision making factors.

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Chapter No. Particulars Page no

1 Introduction
• The prologue
• Research Problem
• Objective of the study
• Methodology of study

✓ Research approach
✓ Sampling techniques
✓ Sample size
• Scope of Study
• Limitations of study

2 Literature Review

3 Company /Product Profile

• Introduction to OMFED
• Units Of OMFED
• Achievements
• Vision and Mission
• Processing and Quality control
• Product profile
• Supply Chain Management
• Competitor Analysis
4 Data analysis and interpretation
• Methods of analysis
• Data collections
• Tools of representation
• Data Analysis and interpretation for consumer
• Data Analysis and interpretation for retailer
5 Summary And Conclusion
• Major Findings
• Managerial Implications
• Conclusion
Annexure
• Bibliography
• Sample copy of questionnaire

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 TABLE OF CONTENT

CHAPTER: 1

INTRODUCTION
1.1 The prologue
1.2 Research Problem
1.3 Objective of the study
1.4 Methodology of study
1.3.1 Research Approach
1.3.2 Sampling Techniques
1.3.3 Sample Size
1.5 Scope of Study
1.6 Limitations of study

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 INTRODUCTION
OMFED (The Orissa State Cooperative Milk Producers' Federation Limited) is one of the Milk
Federation affiliated to the National Dairy Development Board (NDDB), situated at Bhubaneswar, the
state capital of Orissa. It is an apex level Milk Producers' Federation in Orissa registered under
Cooperative Society Act – 1962. Omfed was established based on AMUL pattern under operation flood
programme of NDDB, for promoting, production, procurement, processing and marketing of milk & milk
products initially in undivided districts of Puri, Cuttack, Dhenkanal, and Keonjhar.

The Orissa state Cooperative Milk Producers' Federation Ltd. is controlled by a Board Of Directors
which consists of Chairman of all affiliated Dist. Cooperative Milk Producers" Unions, three nominees of
Government of Orissa, a nominee from the National Dairy Development Board and Managing Director
of the Omfed (Who is the ex officio member). The Chairman of the BOD is elected amongst the members
of the Board. The post of Chairman of the Federation is honorary.

RESEARCH PROBLEM

OMFED dairy has lots of competitor in market such as Kamdhenu, Milky moo, Amul, etc. Thus to
satisfy the competitive environment & to identify why there is a decrease in sale of its products among
others competitors and to increase the buying power of customer is the issue that the organization is
facing among its competitors. According to the market demand of milk, OMFED cannot meet the demand
as there is less availability of raw milk is the biggest issue that the organization is facing.

RESEARCH APPROACH

The research methodology adopted is of descriptive type. The method of research utilized here
was survey method. The facts or information gathered were analyzed to make a critical evaluation of the
information.

Actual study was conducted in 3 stages: -

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Stage 1:-
First we discussed with our guiding officers on the various parameters of the project. We also talked
informally with some consumers and retailers to have some preliminary idea.

Stage 2:-
Next questionnaire was prepared based on prior discussion. Separate questionnaire was prepared for
established and unexplored markets.

Stage 3:-
Lastly the final questionnaire was prepared with various modifications to the previous questionnaire.
Separate questionnaires were prepared for the consumers and retailers
SAMPLING TECHNIQUES
The stratified sampling method was followed. The population of all the towns was not
homogeneous. There exist people of different occupation. So, stratified sampling technique had to be
applied in order to obtain a representative sample.
SAMPLE SIZE
The sample size varied from town to town for both consumers and retailers. The sample size
taken was 100. 30 retailer and 70 consumers respectively.
METHODOLOGY
Initially 20 factors were identified to carry on the survey through an analysis. This was further
cleaned into a list of questions in a questionnaire (refer annexure). Once framed and properly
fragmented, these were individually filled for a process of Descriptive Research. A cross-board
survey was undertaken involving consumers of milk in Rourkela and Keonjhar. This gave a
congregated set of 100 responses which were then segregated and keyed into SPSS. SPSS was
extensively used to narrow down the factors into components
NEED OF THE STUDY:-

The project was an attempt to know the reasons behind low sale of milk & other milk products of
OMFED in Keonjhar. Despite of being the first in the industry, and having the first mover advantage and
the brand name,the sale has fallen down incredibly due to competitors like Amul , Kamdhenu , and others.

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 There is a need to revamp the company and position it all over again in the
mind of the consumers. In doing so firstly the grievances of the distributors and the retailers were required
to be solved in order to encourage them for push sales .Secondly a study of consumers decision making
factors is required in order to understand their priorities which can be worked upon. For this purpose a
research is to undertaken to find out the market scenario.

With the help of the responses given by the consumers and data analysis, the company will be able
to understand its strengths, weakness , opportunities and threats. The survey report submitted by me will
assist the company to take right decisions to increase the turnover and market share.

OBJECTIVE OF THE STUDY:

The objectives of the study are the following :-

➢ To probe the reasons for decreasing market share of OMFED and to find out the measures that can
be adopted to increase the sales.
➢ To study the distribution channel in the retail chain of OMFED.
➢ To identify the issues related to OMFED retailers and distribution and their opinions.
➢ To study OMFED positioning in the mind of the consumers vis-à-vis competitors

SCOPE OF THE STUDY:

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 In the era of globalisation, many competitors are set up to open their business
in the market. As we all know that the Indian markets are the best money making
markets. In view of this, many companies have done their market research and pick up the idea of milk
distribution and supply to the needy people. They adopt the idea from Amul and start procurement of milk
from rural area and supply them with a brand name in urban areas in the country as the market is still
open.

LIMITATIONS OF THE STUDY:

➢ Some of the respondents could not give their proper response due to lack of time. They at times
tend to get biased and project a rosy picture which may affect the reliability and relevance of the
study.
➢ It might also be so that some respondents were not motivated enough to respond properly although
full attempt was made to keep it as unbiased as possible.
➢ There was no provision of visiting cards for the summer trainees which hinder communication at
times
➢ The duration of the project was short, so the scope of more in-depth evaluation was not possible.

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CHAPTER: 2

LITERATURE REVIEW
2.1 About the industry

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 ABOUT THE DIARY INDUSTRY

Dairy farming in Odisha employed more than 60 percent of total work force in agriculture
and allied activity. The milk production status is increasing each year in Odisha. The milk production
was 2.20 million ton in 2010-11 with per capital availability of milk 136 gms. There is total of 14.3
million of milk cattle up to 2007.

Majority of dairy farmers are small and marginal farmers. Although OMFED is operating for
more than three decades, new players have come. Among all the new players in milk processing
area, Milk Mantra is growing at a high pace. Odisha dairy farmers are lagging behind the use of
modern capital inputs due to lack of investment. Credit supply to odisha agriculture is not demand
oriented rather it is supply driven.The specific need of the farmers are not considered and analyzed.
In this paper, the dairy farmer in Odisha has been classified according to the herd size, land holding,
way of marketing and use of technology. The present scenario of Odisha dairy farmers has been
clearly described from their challenges to a profit making case study. The green fodder cultivation
is the important cost effective technique which is not used by farmers of Odisha. Odisha is one of
the eastern states of India having tremendous agriculture and allied opportunity. Odisha has total
land area of 1, 55, 820 square km with thirty districts having population of 4.19 crores. Odisha is
blessed with huge reserve of minerals and coal.

Apart from all this resources, Odisha is poorest state with high incidence of poverty. Odisha
Economy has remained mainly agrarian, dominated by agriculture and allied subsectors
contributed more than 70 percent of gross state domestic product (GSDP) in 1950s. This
contribution is reducing slowly. The contribution of agriculture and allied subsector contributed
18.44 percent of GSDPs against national contribution of 14.60 in 2009-10. However , this sector
provides employment and sustenance, directly and indirectly more than 60 percent of state’s total
work force. About 85 percent of livestock holding in Odisha held by landless and small or marginal
farmers. According to 18th livestock census, 2007, it has revealed that 123.09 lakh of cattle resource
out of 230.57 livestock population in odisha. The cattle population is 60 percent of total livestock in
odisha.

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 According to 2009-10 information, Odisha contributed 2 to 3 percent of
total milk production in India. The production of milk has increased from 1598
TMT in 2008-09 to 1651 TMT in 2009-2010. In Odisha, daily milk output is 60 lakh liters, but the
amount processed is 5 to 6 lakh litres. So there is huge potential for processing industry to process
milk and make it a value added product. In dairy farming, major marketable item is milk. Apart from
the production of milk, manures, meat, bones, hides, skin and draught powder also sold .Milk is very
important in rural area. Odisha is not only a poor state, but also affected with malnutrition. So
efficient and effective production of milk can bridge the gap of malnutrition in odisha. In odisha,
major problem of any type of agri related activity is fragmented land. Apart from fragmentation of
land, illiteracy, lack of information flow, lack of government policy implementation, less credit
facility, issue with marketing has resulted inefficient and less productive dairy sector.

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CHAPTER: 3

COMPANY PROFILE
3.1 About the company : an overview
3.2 Units of omfed
3.3 Achievements
3.4 Vision and mission
3.5 Processing and Quality control
3.6 Supply chain management
3.7 Company products
3.8 Competitor analysis with other brands

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3.1 ABOUT THE COMPANY : AN OVERVIEW

The Orissa State Co-operative milk producers’ Federation (OMFED) was stared on 26th
January 1981 under the operation flood-I program. The Main Objective of the staring this federation
was to develop the diary industry as on organized sector in Orissa. Before staring of the diary sector
by encouraging the formation of milk producers cooperative societies at village level in Cuttack and
Puri district with the expansion of the market pasteurized milk. A new plant was planned at
Chandrasekharpur, Bhubaneswar. This plant of 1,00,000 litre per day handling capacity was
commissioned by National Dairy Development board and hand over OMFED ON 12 th December
1984

The Orissa state Cooperative Milk Producers’ Federation Limited (OMFED) is an apex level
Dairy Cooperative Society Act- 1962. It has become into existence to integrate the Milk producer’s
in rural areas with consumers in the urban areas with an enterprising aptitude. To carry out
activities for promoting production, procurement, processing and marketing of milk
& milk products for economic development of rural farming community.

Adding to it, OMFED not only conducts milk and milk product,
it plays other allied business activities such as cattle feeds and marine feeds, Kandhamal
organic products and horticulture products. The operational network area reaches to the
every corner of Orissa, spreading from Cuttack, Puri, Boudh, Dhenkanal, Keonjhar, Ganjam, Gajapati,
Bolangir, Sundargarh, Kandhamal, Sambalpur, Bhadrak, Baleswar and Koraput having their
milk union. Every milk union has its individual corporate office.

The organization has also established training and demonstration program

such as Omfed Training and Demonstration [OMTDC] situated at Jagannathpur, Balianta, other
plants are located such as cattle feed and marine feed at Radhadamadurpur, Athgarh and another
plants is establish such as Omfed Agri Processing Centre [OMAPC] at Samantrapur at Cuttack and at
near Chandersekharpur, the production plant of Omfed situated at railKutir.

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3.2 UNITS OF OMFED:

GREATER GANJAM BOLANGIR-

GAJAPATI MILK KALAHANDI-NUAPADA DHENKANAL
CUTTACK
MILK UNION
MILK UNION
SAMBALPU
KEONJHAR
R MILK
MILK UNION

BOUDH
PURI MILK
MILK UNION
UNION

KANDHMAL
SUNDARGARH
MILK UNION
MILK UNION

BHADRAK-BALASORE-
KORAPUT MALKANGIRI
MAYURBHANJ MILK UNION
NABRANGPUR RAYAGADA MILK
UNION

CORPORATE OFFICE

BHUBANESWAR ROURKELA SAMBALPUR BALASORE

DAIRY DAIRY DAIRY DAIRY

JEYPORE CATTLE FEED KEONJHAR O.M.T.D.C

DAIRY PLANT DAIRY

BHAWANIPATNA OMPAC BERHAMPUR DHENKANAL

DAIRY DAIRY DAIRY

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3.3 ACHIEVEMENTS:
The year of operation started from 1997 and it achieved great height in sale of milk and milk
products. From the starting year to 2014, the Organized D.C.S increased from 1016 to 5281, Farmers
membership increased from 92476 to 272257 and milk procurement increased from 76770 to
390257.

3.4 VISION AND MISSION

VISION OF OMFED

To be a leading milk producing organisation at international level of efficiency with widest and
satisfied customer base, maximising wealth of stake holders and contributing to the state of
economy.

MISSION OF OMFED

• Advancement of dairying, encouraging and educating people, through mutual participation

• Continuous endeavour to increase productivity and per capita consumption.
• To promote clean milk and distribution with state-of-art technology.
• Customer satisfaction with reliable, uninterrupted services and quality products.
• To foster a performance oriented culture encouraging innovation.
• To promote a congenial work climate encouraging employees to participate and contribute
for organizational growth.
• To be a learning organization and responsive to changing environment.
• Continuous upgrading of skills and competence of employees and their career advancement.
• To enrich quality of life of people and preserve ecological balance.

3.5 PROCESSING AND QUALITY CONTROL:

MILK PROCESSING

▪ Standardisation
▪ Separation
▪ Pasteurisation
▪ Storing

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 STANDARDISATION

This is the process of developing and agreeing upon technical standards. A standard is a document that establishes
uniform engineering or technical specifications, criteria, methods, processes, or practices.

SEPARATION

The cold raw milk passes through either clarifier or a separator, which spins the milk through a series of conical
disks inside an enclosure. A clarifier removes debris, some bacteria, and any sediment that may be present in the
raw milk.

PASTEURIZING

The milk is piped into a pasteurizer to kill any bacteria.

PRODUCT PROCESSI NG

STERILIZATION OF MILK:

Milk that is processed in this way using temperatures exceeding135° C, permits a decrease in the necessary holding
time (to2-5 s) enabling a continuous flow operation.

CONTRACTION /EVAPORATION:

Fluid milk contains approximately 88% water. Concentrated milk products are obtained through partial water
removal.
Dried dairy products have even greater amounts of water removed to usually less than 4%. The benefits of both
these processes include an increased shelf-life, convenience, product flexibility, decreased transportation costs.

DRYING:

The milk is then evaporated prior to drying for the following reasons:
• less occluded air and longer shelf life for the powder
• viscosity increase leads to larger powder particles
• less energy required to remove part of water by evaporation; more economical

FERMENTATION:

Long before microorganisms had been discovered, buttermilk and sour milk were found palatable by some people
in all countries, Fermented milks are prepared by allowing the normal lactic acid producing organisms present to
develop, or by inoculating fresh milk with a portion of fermented milk of good quality. During fermentation, lactic
acid thickens or curdles the milk and produces the desired sour flavour.

COAGULATION:

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Milk may be coagulated by the addition of rennin or by bringing the acidity of the milk to the
isoelectric point of the casein. When milk is combined with other foods, the salt content of the food or the tannin
content of the food may be factors that aid coagulation
PACKAGING:

Packaging is a technique of using the most appropriate containers and components to protect, carry, identify and
merchandise any product. It constitutes an important link between the manufacturer and ultimate consumer for
the safe delivery of the product through different stages of production, storage, transport, distribution and
marketing.
STORAGE & DISTRIBUTION:

The finished products are stored in the cold storage in omfed . Here they are stored for the purpose
of getting dispatched to different distribution units during the different phase of the day. It can be also
stored for more than one day according to the demand of the product. In the cold storage the milk
products are generally stored at a temp. Between 0 C to 4oC.Then with the help of well equipped
vehicles the milk products are dispatched to the respected units of distribution to full fill the
customer demand.

DISTRIBUTION CHANNELS:

QUALITY CONTROL OF MILK:

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Milk quality control is the use of approved tests to ensure the application
of approved practices, standards and regulations concerning the milk and milk products. The tests
are designed to ensure that milk products meet accepted standards for chemical composition and
purity as well as levels of different micro-organisms

➢ The milk is tested for adulterations and quality at the time of collection from the farmers.
➢ The Milk that comes from the collection points to the OMFED plant is ensured to have a
temperature of not more than 4°C
➢ The Milk quality is checked repeatedly after each processing phase and the temperature is
judiciously maintained less than 4°C always.
➢ Before the milk leaves the plant for the delivery/distribution outlets the milk is tested
again.
➢ The temperature of milk in the delivery trucks is always maintained less than 4°C.

3.6 SUPPLY CHAIN MANAGEMENT :

A supply chain is a network of facilities and distribution options that performs the functions
of procurement of materials, transformation of these materials into intermediate and finished
products, and the distribution of these finished products to customers. Supply chains exist in both
service and manufacturing organizations, although the complexity of the chain may vary greatly
from industry to industry and firm to firm. Supply chain management is typically viewed to lie
between fully vertically integrated firms, where the entire material flow is owned by a single firm
and those where each channel member operates independently. Therefore coordination between
the various players in the chain is key in its effective management. Cooper and Ellram [1993]
compare supply chain management to a well-balanced and well-practiced relay team. Such a team
is more competitive when each player knows how to be positioned for the hand-off.
The relationships are the strongest between players who directly pass the baton (stick), but
the entire team needs to make a coordinated effort to win the race. Below is an example of a very
simple supply chain for a single product, where raw material is procured from vendors, transformed
into finished goods in a single step, and then transported to distribution centers, and ultimately,
customers. Realistic supply chains have multiple end products with shared components, facilities
and capacities. The flow of materials is not always along an arborescent
network, various modes of transportation may be considered, and the bill of materials for the end
items may be both deep and large.

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 To simplify the concept, supply chain management can be defined as a
loop: it starts with the customer and ends with the customer. All materials,
finished products, information, and even all transactions flow through the loop. However, supply
chain management can be a very difficult task because in the reality, the supply chain is a complex
and dynamic network of facilities and organizations with different, conflicting objectives. Supply
chains exist in both service and manufacturing organizations, although the complexity of the chain
may vary greatly from industry to industry and firm to firm. Unlike commercial manufacturing
supplies, services such as clinical
supplies planning are very dynamic and can often have last minute changes. Availability of patient
kit when patient arrives at investigator site is very important for clinical trial success. This results
in overproduction of drug products to take care of last minute change in demand. R&D
manufacturing is very expensive and overproduction of patient kits adds significant cost to the total
cost of clinical trials. An integrated supply chain can reduce the overproduction of drug products by
efficient demand management, planning, and inventory management.

Traditionally, marketing, distribution, planning, manufacturing, and the purchasing

organizations along the supply chain operated independently. These organizations have their own
objectives and these are often conflicting. Marketing’s objective of high customer service and
maximum sales dollars conflict with manufacturing and distribution goals. Many manufacturing
operations are designed to maximize throughput and lower costs with little consideration for the
impact on inventory levels and distribution capabilities.

Purchasing contracts are often negotiated with very little information beyond historical
buying patterns. The result of these factors is that there is not a single, integrated plan for the
organization-there were as many plans as businesses. Clearly, there is a need for a mechanism
through which these different functions can be integrated together. Supply chain management is a
strategy through which such integration can be achieved.

AT OMFED:

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 A supply chain is a network of facilities and distribution options that
performs the functions of procurement of materials, transformation of these
materials into intermediate and finished products, and the distribution of these finished products
to customers. Supply chains exist in both service and manufacturing organizations, although the
complexity of the chain may vary greatly from industry to industry and firm to firm.
Prime activities of OMFED:-
• Procurement of milk
• Providing technical input to milk producers
• Providing training in new and scientific methods to increase productivity of milk in the state.
• Storing (chilling) the milk
• Processing and marketing of same.

Structure of OMFED supply chain (The ANAND Model)

To achieve the objectives OMFED has designed its supply chain to suit its customized needs. OMFED
follow three tier systems that were originally pioneered by AMUL dairy in Gujarat, India. In this
three tier system of operation the various components are

1. The Village Cooperative society(the actual milk producers)

2. The District Milk Union (the middle tier which collects milk from the producers and also
provides them required inputs).
3. The Milk Federation (Processing and Marketing of milk).

Unlike in traditional systems where middleman used to dictate terms to the actual producer by
offering lower price to them, in this system the collective ownership lies with farmers and thus
ensures a fair price to the farmers.

Since 26th January 1981 when OMFED started functioning, it has made its presence felt in many
districts of Odisha. It is present in majority of districts of western & coastal Odisha.Milk is procured
from various village cooperative societies throughout these districts twice daily. From which it is
sent to chilling centres at nearest District Milk Union in hired trucks. From the Milk Unions it is sent
to the nearest Milk Federation dairy for processing and marketing

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 (Supply chain network of OMFED)

Village cooperative Society

This is the first tier in the whole system. It is voluntary association of milk producers in a village
willing to sell milk collectively. Any milk producer can become a member by paying a nominal fee
of Re 1 and buying a share of Rs 10.

The milk producer is expected to sell only the surplus milk to society after meeting his personal
needs. The members elect a committee and a chairman too to better manage things. The committee
then select some more people to act as aides (milk tester, secretary etc.). Milk producers bring milk
to the society every morning and evening. A sample of milk from each producer is taken and tested
by lactometer for quality. The society sells milks only to the nearest District Milk Union.

Districts Milk Union

The Milk Union then carries the collected milk from the society by using hired transport vehicles to
their processing centres. Milk is chilled to 5°C in the chilling centres.

The collector of the District is the chairman of District Milk Union. It is also the job of the Milk Unions
to provide technical input (new methods like artificial insemination etc.), training and sometimes
even to provide cattle feed and fodder etc to the village societies.

The milk union gives various technical inputs to the producers to enhance their milk productivity.
This is done in the hope that excess productivity will result in excess of surplus milk with producer
which he can sell to the village society. Some of the prominent technical input programs (TIP) are:-

• Embryo Transfer Technology (ETT)

• Artificial Insemination (AI)
• Feed and Fodder program
• Training (Orissa Milk Federations’ integrated Training & Development Centre: OMTDC )

Milk Federation
INSTITUTE OF BUSINESS AND COMPUTER STUDIES 25
The milk federation provides for processing and marketing of milk and milk
products. The chilled from the Milk Unions is sent to the nearest federation dairy
for processing, packaging and marketing. The federation is managed by a Board of Directors (BOD).
The federation has representation from various milk unions and also from the state government of
Odisha. The BOD chooses a chairman from among its members.

One more important feature in this supply chain is that after making the products whatever
monetary realization is achieved is routed back through the supply chain to the producers once in
10 days.

The milk and milk products are being marketed by authorized retailers of OMFED throughout the
state. The urban customer is the last point of the Milk flow supply chain of OMFED. OMFED milk is
supplied in standard poly pack to the authorized retail centres once every morning in OMFED
trucks. These trucks pick up milk from the nearest federation dairy and have to cover all authorized
retail outlets in particular area assigned to them.

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 26

COMPANY PRODUCTS:

COMPETITOR ANALYSIS
INSTITUTE OF BUSINESS AND COMPUTER STUDIES 27
COMPARISON WITH OTHER COMPETITOR

According to survey of market we have analysed that in district of ROURKELA AND KEONJHAR
are running with highest market share of omfed. Still in this competitive market some other diary
firms have launched their products as the same segment as OMFED . the competitors like
KAMDHENU (PASUPATI GROUP) , MILKY MOO PVT LTD and some part AMUL as in segment of
ice cream , sfm etc. Due to this in recent past OMFED has loosen some market share. The purpose of
my study is all about the decrease in market share due to this competitor in market.

According to data provided by OMFED authorities and market exclusive distributors :

Production And Sale Of OMFED Products Daily in ROURKELA AND KEONJHAR

Capacity For Production Of Milk 20476 Ltrs

Sfm , Butter Milk, Other Products 3150Ltrs

Production And Sale Of Kamdhenu Products Daily ROURKELA AND KEONJHAR

Capacity For Production Of Milk 1500 Ltrs

Sfm , Butter Milk, Other Products 250 Ltrs

Production And Sale Of Milky Moo Products Daily in ROURKELA AND KEONJHAR

Capacity For Production Of Milk 750 Ltrs

Sfm , Butter Milk, curd 80 Ltrs

COMPARISION OF MARKET SHARE WITH THE COMPETITORS

BRAND QUANTITY PRODUCED MARKET SHARE

PER DAY(IN LTRS) (IN %)

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 28

 OMFED 23626 89.13
KAMDHENU 1750(Approx) 6.60
MILKY MOO 830(Approx) 3.13
OTHERS 300(Approx) 1.13

TOTAL 26506

COMPARISION OF MARKET SHARE WITH THE

COMPETITORS
3% 1%

7%

OMFED
KAMDHENU
MILKY MOO
OTHERS

89%

COMPARATIVE STUDY WITH OTHER BRANDS

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PRODUCTS OMFED KAMDHENU MILKY MOO
Milk

RS 20 (500 ML) RS 18(500 ML) RS 19 (500gms)

Sweet curd

RS 12 RS 10
Plain curd

RS 18(200GM) RS 19 (200 GM)

Lassi

RS 10 (250 ML) RS 10 (200 ML)

Paneer

RS 57(200 GMS) RS 50(200 GMS) RS 40 (200GMS)

Butter milk

RS 10 (250 ml)
RS 10(250 ML)

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 30

Sfm

RS 18(200 ML)
RS 17(200ml)
Ice cream

RS 70 (500 ML)
RS 50(500ML)

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CHAPTER: 4

DATA INTERPREATATION
AND
ANALYSIS
4.1 Methods Of Analysis
4.2 Data Collection
4.3 Tools Of Representation
4.4 Data Analysis And Interpretation For Consumer
4.5 Data Analysis And Interpretation For Retailer

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 32

 4.1 METHODS OF ANALYSIS

As in Research methodology two methods were taken:-

• Observation method
• Survey method

In observation method, data are collected by direct observation, no talk’s takes place. In survey
method information is collected directly from individual through questionnaire technique. Separate
questionnaire are made for retailer and customer for analysis.

In order to analyse the data collected from questionnaire various statistical tools were used like the
percentage, charts were used.

DATA COLLECTION

The available & quality of information is mainly dependent on the sources of information. This study
is mainly based on primary & secondary data sources. The primary data has been collected on the
basis of a structured schedule drawn up by us on approval from OMFED management. The response
has been gathered from the dealers & consumers to get more reliable information.

The secondary data has been collected from OMFED’s website, internal files, documents, internal
magazines and on the basis of discussion I had.

4.2 TOOLS OF REPRESENTATION

The Researcher represents the data analysis using as a tools like Data Table’s, Pie Chart and Bar
chart.

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 4.4 DATA ANALYSIS AND INTERPRETATION
FOR CONSUMER

Fig 1. Customer preference about purchase of milk brand

OPTION RESPONDENTS PERCENTAGE(%)

Omfed 65 65
Kaamdhenu 20 20
Amul 0 0
MilkyMoo 11 11
others 4 4

Total 100

Customer preference about purchase

of milk brand
4%
0%
11% Omfed
Kaamdhenu
20%
Amul
MilkyMoo
65%
others

Interpretation
From the above analysis it is interpreted that most respondents i.e. 65% prefer Omfed, 20% prefer
Kamdhenu, 0% prefer Amul, and 11% prefer MilkyMoo and others 4%.

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 34

Fig 2 . Average daily consumption of MILK(in ltrs)
OPTION RESPONDENTS PERCENTAGE(%)

less than 1 10 10
1 to 2 50 50
2 to 5 35 35
5 or more 5 5
No consumption 0 0

Total 100

Average daily consumption of

MILK(in liters)
0%

5%
10%

less than 1
35%
1 to 2
2 to 5
5 or more
No consumption

50%

Interpretation
From the above analysis for daily consumption of Milk it is interpreted that 50% consume 1-2 litres, 35%
consume 2-5 litres, 10% consume less than 1 litre and 5% consume 5 or more.

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 35

 Fig 3. Frequency of purchase milk
OPTION RESPONDENTS PERCENTAGE(%)

Every day 75 75
Every week 20 20
once or twice in
Month 5 5
Not at all 0 0

Total 100

Frequency of purchase milk

0%

5%

20%
every day
every week
once or twice in month
Not at all
75%

Interpretation
From the above analysis it is interpreted that 75% purchase everyday, 20% purchase every week,
and 5% purchase once or twice in month.

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 Fig 4 .Reason for not purchasing of OMFED milk
OPTION RESPONDENTS PERCENTAGE(%)

37.5
Not hygienic 12
Packaging not good 5 15.625
6.25
High priced 2
28.125
Low quality 9
12.5
Others 4

Total 32

Reason for not purchasing of OMFED

milk

13%
Not hygenic
37%
Packaging not good
High priced
Low quality
28%
Others
6% 16%

Interpretation
From the above analysis it is interpreted that, the big reason for not purchasing of OMFED milk is -
28% are saying low quality, 37% are saying not hygienic , 6% are saying high priced, 13% are saying
others, and 16% are saying packaging not good.

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Fig 5 . Consumer preference about "Type of delivery service"
OPTION RESPONDENTS PERCENTAGE(%)

Doorstep 30 30
Retail counters 68 68
Shopping Mall 1 1
Others 1 1

Total 100

Consumer preference about "Type of

delivery service"
1% 1%

30% Doorstep
Retail counters
Shopping Mall
Others
68%

Interpretation
From the above analysis it is interpreted that most of the consumer i.e. 68% prefer retail counter,
30% prefer doorstep, and 1% prefer shopping mall and 1% other.

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 Fig 6 . Analysis based on various attributes

No of respondents
Attributes
A SA DA HD (NA-ND) Total

Purchase of
milk based on quality 39 58 0 0 3 100

Purchase of milk
based on Price factor 32 67 0 0 1 100

Product is
Timely available 23 75 0 0 2 100

Omfed products-
Best in quality 26 21 23 17 13 100

Price of omfed
product- Reasonable 29 34 11 9 17 100

Omfed Products
are best in taste 14 6 20 18 42 100

Varieties of OMFED
products are available 40 27 3 7 23 100

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 39

 Analysis based on attribute
80

70 Puchase of milk based on

Price factor
60 Purchase of milk based on
quality
Product is Timely available
50
Omfed products- Best in
40 quality
Price of omfed product-
Reasonable
30
Omfed Products are best in
taste
20 Varities of OMFED products
are available

10

0
Agree Strongly Disagree Highly NA-ND
agree Disagre

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 40

 4.5 ANALYSIS AND INTERPRETATION FOR RETAILER

Fig 1. Time period in involvement of selling of OMFED products

OPTION RESPONDENTS PERCENTAGE(%)

Less than 6 months 0 0

Between 6mothns & 1 year 6 20
1 year or more 24 80
Just started 0 0

Total 30

Time period in involvement of selling of OMFED

products
0% 0%

20%

Less than 6 months

Between 6mothns & 1 year
1 year or more
Just started

80%

Interpretation
From the above analysis it is interpreted that, 80% retailer are involve in selling of OMFED products
more than 1 year and 20 % are between 6months and 1year.

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 41

 Fig 2 .Reason For Choosing To Be An OMFED Agent
OPTION RESPONDENTS PERCENTAGE (%)

Mostly preferred 15 50
Easily Available 6 20
Best in quality 5 16.67
More profit 3 10
Others 1 3.33

Total 30

Reason for choosing to be an OMFED agent

3%

10% Mostly preffered

Easily Available
17% 50%
Best in quality

More profit

20% Others

Interpretation
From the above analysis it is interpreted that the reason behind to choose to be an OMFED agent-
50% are saying it is mostly preferred, 20% are saying it is easily available, 10% saying more profit,
17% saying best in quality and 3% others .

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 42

 Fig 3 .Volume Of Sales At Doorstep
OPTION RESPONDENTS PERCENTAGE (%)

20-30 liters 2 6.67

30-50 liters 6 20
50-80 liters 1 3.33
More than 80 liters 0 0.00
Not Available 21 70

Total 30

Volume of sales at Doorstep

7%
20-30 liters

20%
30-50 liters

3%
50-80 liters
0%

More than 80 liters

70% Not Available

Interpretation
From the above analysis it is interpreted that 70% retailers are not providing doorstep service and
those who are providing doorstep service out of that their daily sales -20% retailers are selling 30-
50 litres, 7% retailers are selling 20-30 litres and only 3% retailers are selling 50-80 litres.

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 43

 Fig 4 Volume Of Sales At Retail-Outlet
OPTION RESPONDENTS PERCENTAGE (%)

20-30 liters 3 10
30-50 liters 3 10
50-80 liters 2 6.67
More than 80 liters 22 73.33

Total 30

Volume of sales at Retail Outlet

10%

10%
20-30 liters
7%

30-50 liters

50-80 liters

73% More than 80 liters

Interpretation
From the above analysis it is interpreted that the daily sales of a retailers at retail outlet- 80%
retailers are selling more than 73 litres, 7% retailers are selling 50-80 litres, 10% retailers are
selling 30-50 litres and 10% retailers are selling 20-30 litres.

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 44

 Fig 5 Time spending in selling of Milk
OPTION RESPONDENTS PERCENTAGE (%)

2 hours in morning only 4 13.33

2 hours in evening only 0 0.00
Throughout the day 26 86.67

Total 30

Time spending in selling of Milk

13%
0%

2 hours in morning only

2 hours in evening only

Throughout the day

87%

Interpretation
From the above analysis it is interpreted that 87% retailers are selling milk throughout the day,
13% retailers are selling milk only 2 hours in morning and no retailers are there those who are
selling milk only 2 hours in evening.

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 45

 Fig 6 How Would You Rate Your Present Sales
ATTRIBUTES QUANTITY PERCENTAGE
Satisfactory 25 83.333333
Unsatisfactory 5 16.666667

TOTAL 30

How Would You Rate Your Present

Sales

17%
SATISFACTORY
UNSATISFACTORY

83%

Interpretation
From the above figure, it is concluded that 17 % of retailers are not satisfied with sales and 83 %
of retailers are satisfied with the sales among the 30 retailers as i have taken.

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 46

 Fig 7 If Answer Is Unsatisfactory Then Choose The Reason

Reason Response
Competition From Other Brands 6
Competition From Local Diary Owners 1
Others (Quality Etc) 1

Total 8

0
COMPETITION FROM COMPETITION FROM OTHERS (QUALITY ETC)
OTHER BRANDS LOCAL DIARY OWNERS

Interpretation

From the above figure , it is being concluded that among the 30 retailers 8 have state d the reason
for their unsatisfactory sales 6 retailers have said competition from other brands, 1 have said
competition from local diary owners and 1 have said as quality is not good the sales have gone down.

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 47

 Fig 8 Rating On The Basis Of Scales 1 – 5

Attributes Scale 1 Scale 2 Scale 3 Scale 4 Scale 5 Total

Margin 1 5 8 10 6 30
Timeliness 0 0 0 3 27 30
Demand Of Retailers 0 0 11 10 9 30
Quality 2 1 8 11 8 30
Packaging 2 3 14 6 5 30
Hygeine 2 3 14 6 5 30

RATING ON THE BASIS OF SCALES 1 - 5

30

25

20 MARGIN
TIMELINESS

15 DEMAND OF RETAILERS
QUALITY
10 PACKAGING
HYGEINE
5

0
1 2 3 4 5

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 48

CHAPTER: 5

SUMMARY

AND

CONCLUSION

5.1 Major findings

5.2 Managerial Implications
5.3 Conclusion

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 49

 SUMMARY AND CONCLUSION
5.1 Major Findings:-
On the basis of survey, these are the following findings i have got:

FOR CUSTOMER:
• Most of the customers purchase omfed milk daily.
• Per capital consumption is 1-2 ltrs per day.
• More customers are preferred with omfed milk.
• Most of the customers are likely to be interested in doorstep delivery.
• Most of the customers are given almost same preference to quality and price.
• Customers those who are preferring omfed products are satisfied with product availability.
• Most of the customers are satisfied with the taste of the omfed products like ice cream, plain
curd etc.
• Most of the customers are not aware of different varieties of omfed products.

FOR RETAILERS:

• Most of the retailers are selling omfed milk as compare to other milk brand.
• Most of the retailers have chosen to be an omfed agent as it is mostly preferred and easily
available.
• Almost all retailers are selling omfed products throughout the day.
• Private brand have been able to enter the market only on the basis of their packaging ,
branding and awareness.
• Most of the retailers are saying margin is less on milk.
• Beside milk, there is less availability of other milk products.

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 50

5.2 MANEGERIAL IMPLICATIONS
• Quality control measures should be there in production and processing.
• Customers are more opting for doorstep delivery that’s why mobile vending facility should
be there.
• Advertisement and awareness about all products should be there.
• Suggestions & complaints made by retailers & consumers should be given due attention to
provide maximum satisfaction. This could create and impression that OMFED cares for
them.
• Omfed should come up with a scheme for consumers like discount on Omfed Ice cream or
any other product on supplying empty pouch packets of Omfed milk .

5.3 CONCLUSION
This project was about the milk segment of OMFED which due to intense competition from its
competitors is continuously losing its market share. So in this project different parameters on which
the sale of OMFED depends are studied and analysed from the retailer and consumers perspective.
The final outcome of the project is that the parameters which make decision regarding the purchase
of milk & other product are Price , Quality, Smell , Taste , Advertisement and Awareness. Milk market
is a totally unpredictable market and the organisation should be over-cautious of any complaints
that come into milk as it includes the sentiments of a mother for her kid and she would not prefer
to give anything to her kid for which she is not 100% satisfied. So the company should take every
step possible to contain these problems which in some way or the other affects the sale of OMFED
and its retailers.

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 51

 QUESTIONNAIRE
RETAILER

Name – Shop Address:

Phone -

Put (✓) on the best selected option.

Q1: Average daily sales of milk (in ltrs)?

BRAND QUANTITY
Omfed
Kamdhenu
Amul

Q2. How long you have been involved in selling of Omfed products?
(a)less than 6 months (b)more than 6 months & less than 1 year
(c) 1 year or more (d) just started

Q3. Why you have chosen to be an Omfed agent?

(a) Mostly preferred (b) Easily available (c) Best in quality
(d) More profit (d) others

Q4. Volume of sales at Doorstep ?

(a) 20-30 ltrs (b) 30-50ltrs
(c) 50-80 ltrs (c) more than 80ltrs

Q5. Volume of sales at Retail outlet ?

(a) 20-30 ltrs (b) 30-50ltrs
(c) 50-80 ltrs (c) more than 80ltrs

Q6. How much time you are spending for selling of Milk ?
(a) 2 hours (in morning) (b) 2hours ( in Evening)
(c) Throughout the day

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 52

Q 4 : Rate Omfed on the scale of 1-5 on the following factors ( 1 as
worst and 5 as best) :-

Particulars 1 2 3 4 5
Margin
Timeliness
Demand of
retailers
Quality
Packaging
Hygiene

Q7: How would you rate your present sales?

Satisfactory
Unsatisfactory

Q 8: If the answer to the above is unsatisfactory then please choose the reasons from
below:
Competition from other brands
Competition from other local diary owners
Others

Q 9 : Who is the major competitor of omfed?

Amul
Kamdhenu
Milky moo
OMFED
Others

Q 10: Which one of the above have a better quality?

Amul
Kamdhenu
Milky moo
OMFED
Others

Any Suggestions/Complains:-

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 53

 CONSUMER

Name: Gender:
Age: Phone:
Address:

Put (✓) on the best selected option.

Q1. The brand that comes to mind when you purchase milk?

(a)Omfed (b) Kaamdhenu (c) Amul

(d) MilkyMoo (e) Others

Q2. Average daily consumption (in liters)

(a) Less than 1 (b) 1-2 (c) 2-5

(d) 5 or more (e) No consumption

Q3. How frequently do you purchase Omfed Products?

(a) Every day (b) Every week (c) Once or twice in month
(d) Not at all

Q4. If you are not purchasing Omfed product then why?

(a) Not hygienic (b) Packaging not good (c) High priced
(d) Low quality (e) others

Q5. Which type of delivery service you preferred more?

(a) Doorstep (b) Retail counters (c) Shopping Mall

(d) Others

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 54

Put (✓) on the best selected option in the boxes below.

Sl Attributes Agree Strongly Disagree Highly Neither

no. Agree disagree agree
not
disagree
1 Decision to purchase of milk
depends on quality of milk
2 Price is the important factor
when it comes to purchase
of milk
3 Product is timely available

4 Omfed products are best in

quality
5 Price of Omfed products is
reasonable in comparision to
others
6 Omfed products are best in
taste than others
7 Varieties of products are
available in Omfed

Any Suggestions/Complains

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 55

 BIBILOGRAPHY

Kotler.phillip ‘marketing management’ pearson 2015

Abraham koushy ‘marketing management’ pearson 2008

• www.omfed.com
• www.scribd.com
• www.kamdhenumilk.com
• www.slideshare.net

INSTITUTE OF BUSINESS AND COMPUTER STUDIES 56