Annual Project Report Omfed

[“A STUDY FACTORS AFFECTING FOR CONSUMPTION OF OMFED ICECREAM IN BHUBANESWAR”]

2012

A STUDY ON

“FACTORS AFFECTING FOR CONSUMPTION OF OMFED ICECREAM IN

BHUBANESWAR’’

A PROJECT REPORT SUBMITTED TO:-

SAMANTA CHANDRA SEKHAR (AUTO) COLLEGESubmitted by:

LOKANATH LENKA COLLEGE ROLL NO.-309C110 EXAM ROLL NO:- 20209019 +3 Final Year, Commerce

IN PARTIAL FULFILLMENT OFAward of degree in Bachelor of Commerce

Under the guidance ofMrs.Puja mohanty

LectureP.G. Department of Commerce

P.G. DEPARTMENT OF COMMERCESAMANTA CHANDRA SEKHAR (AUTO)COLLEGE

PURI 2011-2012

S.C.S (AUTO) COLLEGE ,PURI Page 0


2012

INTRODUCTION

In the present scenario, all things are variable and possible in the world and so is

our the life- style Society is rapidly changing in the modern way and following

western culture. The modern changes are being shadowed in our young mass

basically at changing food habits, living manner & social acceptance.

Now the ice-cream, soft drinks, chocolate, candy, etc are playing a elderly role

in modern culture so far the food choice is concerned.

In modern society, there is tremendous demand of ice-cream at children, adults,

middle- front age of market. To sell its products and provide 100% customer

satisfaction with good quality and low price, now the present era market are

very competitive. Some of the national ice-cream companies and domestics

companies are very much interested to accrue their market-share such as

FROSTEE, CELESTY, AMUL, DINSHAW’S, AMRIT, VADILAL, TOP n

TOWN , SWEET,COOLFI,KWALITY WALL. The company produces its

products looking the demand of market.



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OBJECTIVE OF RESEARCH STUDY :

To study the product mix of different product lines of OMFED.

To identify the customers choices in context of taste, design packaging,

brand etc.

To ascertainment the views of stake holders in connection with product

mix and the problem associated with thereof and to suggest necessary

alternation in current arrangement.

To examine the effectiveness of product range of OMFED in the market.

To find out factors affecting the demand of OMFED product.

SIGNIFICANCE OF RESEARCH STUDY

All progress in born of inquiry. Doubt is often better than overconfidence for it leads to inquiry and inquiry leads to invention is a famous Hudson Maxim in context of which significance can be well understood .It promotes the development of organization and logical habits of thinking.



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Customer is riddle. He is a highly complex entirely. His needs and desire are innumerable and they very from security needs to aesthetic needs. Customer is difficult puzzle to a marketer. And the marketer’s job remain challenging mainly because he had to predict the unpredictable-customer.

Here research plays an important role to organization in understanding the customer more clearly. It transfers necessary views, ideas, suggestion and other informanation from customers to organization and vice-versa.

Thus research helps to bring the customer closer to organation. Which in turn enables the marketer to analyze the customer.

LimitationEvery action has equal and opposite reaction so everythin have some advantages and limitation also.Therefore, the investigation has some limitations.

It is very costly where the number of persons to be interview is large and

they are spread over a wide geographical area.

The chances of personal prejudice and bias are greater under direct

interview method.

More time is required for collecting information.



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Interviews are held only at the convenience of the respondents. Thus if

informanation is required to be obtained from the working member of

house holds, interviews were either held in the evening or weekends.

Company profile

HISTORY OF THE COMPANYThe Orissa State Co-operative milk producer’s 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 Chandrasekhar, Bhubaneswar .This plant of 1,00.000 liter per day



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handling capacity was commissioned by National Dairy Development board

and hand over OMFED ON 12th December 1984.

The Bhubaneswar Dairy plant covered 1000 square fit of land. There 200

number of workers are working in the factory. There is 16 staff for the

company. The area of marketing of Bhubaneswar dairy are Cuttack ,

Bhubaneswar, Jatani, Khurdha, Balesore, Berjampur, Bhadrak, Angul,

Dhenkanal, Taleher, Jajpur, etc. There are about 400 retailer engaged in

Bhubaneswar Dairy with commission basis of 20 paisa per liter.

The Orissa state Cooperative Milk Producer’s Federation Limited (OMFED) is

an apex level Dairy Cooperative Society Act- 1962. It as 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.



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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, Gagpati, Bolangir , Sundargarh,

Khandamal ,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, another 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 rail Kutir.

OBJECTIVE OF COMPANY

The major objective of OMFED are follows :-

To carry out activities for promoting production. Procurement, processing and marketing of milk & milk products for economic development of rural farming community.

Development and expansion of such allied activities as may be conductive for the promotion of dairy industry. Improvement and protection of milk animals and economic betterment of those engaged in production. In particular and without prejudice to the generality of the forgoing objective, the federation may:-



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Purchase and/or erect building, plant machinery and other ancillary

objects to carry out business.

Study problems to mutual interest related procurement, marketing of

dairy and allied products.

Purchase commodities from the members of other sources without

affecting the interest of the members, process, manufacture, distribute and

sell them same, arrange to manufacture/ purchase and distribute balanced

cattle feed and for the purpose to set up milk collection raw material for

ice cream and chilling centers, processing plants, product factories etc, in

any of the district covered under its area of operation.

provide veterinary aid and artificial insemination services and to

undertake animal husbandry activities so as to improve animal health care

disease control facilities.

advice guide and assist the milk union in all respects of management,

supervision audit functions.

Render technical, administrative, financial and other necessary assistance

to the member unions and enter in to collaboration arrangement with

some one, if the need arises.

Advice the member unions on price fixations public relation and allied

matters.

Union offices of OMFED



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LIST OF THE BRANDS AVALIABLE BHUBANESWAR

SL.NO BRAND NAME

FLAVOUR

1 AMUL Vanilla,strawberry,chocobar,cone,Black current Butter scotch,tutti fruity,kajudraksh,kisser



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pista,funchocobar,orange candy,sandwich,matka kulfi,plain pista,kesar pista,hum jolie,rainbow.

2 CELESTY Vanilla, strawberry, chocobar, cone, kulfi, chowpatty,chocolate ,fudge, cassata slice, bonanza, mango dolly, frosty, centre twist orange, choconut

3 FROSTEE Vanilla, strawberry, chocobar, cone, fresh fruit, choco almond fudge, sitafal, alphonso mango, butter scotch, plain pista, kesar pista,

4 DINSHAWS Vanilla, strawberry, chocobar, cone, butter scotch, plain pista, kesar pista ,mango majic, fruit mix, mango dolly, litchi dolly

7 TOP N TOWN Vanilla, strawberry, plain pista, tutti fruity, kaju draksh butter scothch, kesar pista, coffi nut, bonanza, humjolie, frosty mango dolly, chocobar

8 COOLFI Vanilla, strawberry, plain pista, tutti fruity, butter scothch, kesar pista, coffi nut, cone, plane pista

9 SWEET Vanilla, strawberry, chocobar, plane pista, cone



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PRODUCTS OF OMFED Products

The product of Omfed is very luminary in sweet curd Orissa market such

as milk and milk product viz. flavoured milk, Paneer, Ghee, Lassi,, plane curd,

Omfed Chenopod.



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Kandhamala organic products

Agri business product

Cattle Feeds



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About Ice-cream

Introduction

The ice cream market growth picked up after de-reservation of the sector

in 1997. Of the total size of Rs 15-16bn, around 30-32% is in the hands of

organized sector valued at Rs 4.9bn, rest all is with the unorganized sector.

Among the major players in this industry Hindustan Lever has a market share of

around 50%, represented mainly by Kwality Walls brand. Amul with an

estimated market share of 35% is rapidly gaining market share and lastly

Vadilal is the player in the national market with 8-9% of the market share.

Production area

In rural areas, kulfis / ice creams made by small / cottage industry are popular.

The market for organized sector is restricted to large metro-politan cities. In

small towns and villages, there are thousands of small players who produce ice-

creams / kulfis in their home backyard and cater to the local market. Almost

40% of the ice creams are sold in the country are consumed in the Western

region with Mumbai being the main market, followed by 30% in the north and

20% in the south.



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Growth promotional activities

The Indian government adopted the policy of liberalization regarding the

ice-cream industry also and it is since then that this sector has shown an annual

growth ranging from 15- 20% per annum for last 1- 2 year. Presently in 1999-

00 it is estimated at worth of Rs15- 16bn. This growth rate is expected to

continue for another next 2- 3 years because of lower base.

Types

Indian Ice-cream market can be segmented in three different ways, namely on

the basis of

flavour; on the basis of stock keeping units / packaging and on the basis of

consumer segments.

On the basis of flavour, the market today has a number of flavours like vanilla,

strawberry,

chocolate, mango, butterscotch a number of fruit flavour, dry fruit flavour,

traditional flavor

like Kesar- Pista, Kaju- Draksh etc.

The market is totally dominated by Vanilla, Butterscotch, Strawberry and

chocolate, Mango

which together accounts for more than 70% of the market followed by vanilla,

butter-scotch and other fruit flavour.

Research design and methodology of the study

A study of market demand analysis on ice-cream and a market potential

of quantum in Orissa (Bhubaneswar) formulated a design for market research

study.



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Research objective

The compile quantities and price major different brand of ice-cream sold

in Orissa market.

1. To find out the significant reasons of consumption omfed ice-cream in Bhubaneswar

2. To find out the effect of brand name on daily sales3. To find out the average daily sales of ice-cream of the population.4. To find out the effect of margin given to the retailer on daily sales5. To find out which variant of omfed ice cream is preferred by consumer.6. To find out the effect of different seasons on sales of omfed ice-cream7. To find out the overall satisfaction of omfed on sales of omfed icecream

RESEARCH METHODOLOGY Data collection:

Ice-Cream in Orissa therefore under such a predominant exploratory

design which serves the purpose of the study and along with information for the

study in depth where interview technique was used. The study as the above

objective indicates requirement of the collection of information which are

sensitive, socially desirable and economically expectable. So Data collected

through questionnaire method. The sample elements are the retailer and the

customer of omfed.

Sampling Technique

Due to lack of adequate time and difficulty in reaching all the retailers,

hotel and restaurants, distributors, push carts sales and consumer’s convenient

sampling technique was adopted.

Sampling area: Bhubaneswar is choosed as the sampling area.Sample size: the sample size of the study is 18.



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THE SELECTION OF COMPANY REPRESENTATIVE

Companies’ representatives were identified and selected for purpose of study to

know the market situation, market potentials and to study the competitors in the

market.

DESIGN OF QUESTIONARY

Design a questionnaire need precision and clarified the subjects so that

respondent can easily understand the question and willingly reply the answer.

The questionnaire was designed keeping in mind with information’s

requirement for the study. The questionnaires were logically arranged ranking

and closed questions were used in the questionnaire.

TOOLS FOR DATA COLLECTION

Questionnaires & Interviews were used as tools for primary data collection. I have used Internet, Magazine, Office data to collect secondary data.DATA COLLECTION

Primary data- primary data is collected by observation and survey technique.

It is the first- hand information and it’s more real and accurate than any other

sources. The structure questionnaire was prepared for collecting the information

at primary sources.

Secondary Data-It refers to that information which have been already

collected published in various magazines, papers, internet and website. The

information about the companies in collected from journals and company

website etc.

T test:S.C.S (AUTO) COLLEGE ,PURI Page 15


2012

H0: Those who are prefer omfed for the brand name they are not significantly different from those who prefer omfed for other reasons

SALES FOR BRAND NAME

x1 d d square

SALES FOR OTHER

REASONx2 d d square

400 5.6 31.36 350 -22.2 492.84400 5.6 31.36 500 127.8 16332.84400 5.6 31.36 400 27.8 772.84500 105.6 11151.36 300 -72.2 5212.84400 5.6 31.36 300 -72.2 5212.84400 5.6 31.36 400 27.8 772.84300 -94.4 8911.36 300 -72.2 5212.84350 -44.4 1971.36 450 77.8 6052.84400 5.6 31.36 350 -22.2 492.84

3550 22222.24 3350 40555.56394.4444444 372.2222222

s 157.3434539t 0.299602245

Ttab value for degree of freedom 17 and 95% of confidence is 1.74

As tabulated value is greater than the calculated value. The hypothesis is accepted. There is no adequate evidence to reject the hypothesis.So brand name is not causing any difference in daily sales of ice cream.

The average daily sales of ice cream

H0: The average daily sales of ice cream of the population is 400

One-Sample Statistics

N MeanStd.

Deviation

Std. Error Mean

VAR00001 18 383.3333 61.83469 14.57458

One-Sample Test



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Test Value = 0

t dfSig. (2-tailed)

Mean Differenc

e

95% Confidence Interval of the

Difference

Lower UpperVAR00001 26.302 17 .000 383.3333 352.583

7414.083

0

The hypothesis is accepted. T value is significant at 5%,Here the degree of freedom is 17. The average daily sales of ice cream falls between Rs 352 and Rs 414.00 and 5% level of significance.

Correlation between percentage of margin and sales Scattergram of the data

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0 100 200 300 400 500 600400

Pearson's correlation coefficient test (parametric test):

Observed value -0.118Two-tailed p-value 0.652Alpha 0.05

Conclusion:At the level of significance Alpha=0.050 the decision is to not to reject the null hypothesis of absence of correlation.

In other words, the correlation is not significant.



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Average daily sale of summer season

Every season Sale in summer season 400 300 300 450 400 300 400 400 500 350 350 300 400 400 500 350

400 400

Sum 4050 2850

Average 405 356.25

Average daily sales in every season is exceeding Rs 400.00 which is higher than average daily sales in summer season



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ANALYSIS OF DATA

Proportions and percentage are used for analysis moreover simply

statistical techniques such as graphs, charts and table.

Brand Analysis of Different Brand of Ice-Cream

PERCENTAGE

AMUL

CELESTEE

FROSTEE

AMRIT

TOP N TOWN

DINSHEWAS

VADILAL

COLFI

QUALITY

Explanation

1-brand analysis of market potentiality to sold the different brand of ice-

cream.celestee acquires 22% market on ice-cream of the total market share.

2-Amul acquires 11% market on ice-cream of the total market share.

3-frostee acquires 21% market on ice-cream of the total market share.

4-top n town acquires 20% market on ice-cream of the total market share.

5-Amrit acquires 7% market on ice-cream of the total market share.

6-Dinshwas acquires 5% market on ice-cream of the total market share.

7-Vadilal acquires 11% market on ice-cream of the total market share.

8-Coolfi acquires 1% market on ice-cream of the total market share.

9- Quality walls acquire 2%market on ice-cream of the total market share.

In total we got the brand analysis of different brand of ice-cream the celestee

and frosty were the maS.C.S (AUTO) COLLEGE ,PURI Page 19


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Flavour Analysis

Q: Which flavours are mostly preferred by the consumers?

Interpretation of the graph:VanilaVanilla and butterscotch has the highest selling among all other variants.

Selling Through Out Year or Only Summer

Explanation

1- 70% retail shops, sales the ice-cream through out the year.


bc6%

bsv6%

van38%

%S6

bs27%

st/bs6%

v/bs11%

PERCENTAGE

THROUGH OUT THE OTHER

ONLY SUMMER

OTHER


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2- 20% retail shops, sales the ice-cream only in summer.3- 10% retail sales the ice-cream marriage parties, functions and other

purpose only.

MARKET POTENTIAL OF ICE-CREAM

SEASON

In India, more than 80% of ice-cream sales are raised in summer season.

In this season the ice-cream demands automatically rise such as April to June

and also the rainy season the ice-cream less than the summer. In winter, the ice-

cream demand is much less in our country and also in Orissa .Some people

prefer ice-cream on season, some prefer through out the entire year.

SUMMER- APRIL to JUNE

RAINY- JULY to AUGUST

WINTER-SEPTEMBER to DECEMBER

Growth rate depends on the season.

Whom to Purchase

PERCENTAGE

DISTRIBUTOR

COMPANY

Explanation



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1- 90% retail shops, are purchasing ice-cream from the distributors.2- 10% retail shops, are purchasing ice-cream directly from the

companies. the companies are also opening their counters some coastal area of Cuttack and Bhubaneswar.

Margin given by the companies on Ice-Cream

0

5

10

15

20

25

AMULCELESTEEFROSTEEAMRITTOP N TOWNDINSHEWASVADILALCOOLFIKWALITYWALLS

Explanation

The companies are given margin to the retail counters, but in total average sales

Amul given 16% margin, celestee given 21%, frostee given 23.5%, Amrit given

19.5%, top n town given 23%, dinshawas given 21%, vadilal given 17%, coolfi

given15% and kwality walls given 19% of his total sales of the ice-cream.

owing to competation of the market the local companies are given more margin

like existence brand.

Q: Are you satisfied from this margin? Y/N

Yes 12No 6



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Figure 167% of the retailers are satisfied with omfed ice-cream.

Q: What is your opinion about OMFED’s product? (Good / Average / Very good)

Good 4Average 2Very good 12

good 72%

very good6%

average22%



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Interpretation: 72% of customer are rated good about omfed ice-cream where 22% rated average and 6% rated very good.Reasons for Choosing Ice-CreamQ: If you are selling OMFED Ice Cream, why ?

0

1

2

3

4

5

6

7

Series1 7 4 2 3 2

brand name

availability affordable price

better quality

consumer's demand

Explanation

In our survey, we took eighteen retailer of different stall. We asked them reason

of choosing different brand of ice-cream and their flavour. We got a output that

88% of retailer are satisfied with the availability. 78% of people choosing ice-

cream only for taste of the ice-cream,55% of retailer traced price of the ice-

cream. 55% customer are traced on brand name and flavour of the ice-cream.

Findings of the study :

1. Sales of omfed ice-cream is not influenced by the brand name,

perhaps there are other reasons which influences the sales of icecream.

2. the average daily sales of icecream is Rs.400.00.

3. the margin given on icecream is less as per the discussion with the

retailers but the given margin does not effect the sales of ice cream .



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The graphical representation of correlation among these two variables

are evidence in support of the statement.

4. OMFED ice cream is preferred in every season so it is found that the average

daily sales in the season including summer season is slightly high then the

average daily sales of summer season.

5. Among all the variants of OMFED ice cream Butter Scotch strawberry is

preferred much by the customers.

6. OMFED ice cream is satisfies both retailers and customers as 67% are

shown satisfaction in their approach.

7. As there is a stiff competition of other brands in icecream though only 6%

rated omfed as very good in them of overall performance but 72% have rated

the ice cream as good.

Suggestions :

1. It is found that retailers are seeking some credit facility from the

company. So its should be taken care.

2. Some retailer also complained about the availability though in our study

as per the limitation of time the sample size is very less it is found 100%.

3. Butter scotch is more preferred than other variants. So it can be suggested

that keeping that flavour other variants should be developed.



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4. Most of the omfed ice cream are available in ice cream parlour but it is

not found in other variety stores and stationary shops. So availability

should be made in other counters also.

5. Damage replacement facility is not given by the omfed which is highly

recommended by the retailers. Because ice cream is vulnerable to damage

by many reason as season, proper procurement, mishandling the damage

replacement facility will motivate the retailer to keep the stock in hand.

6. From the interview with the retailer it is found that omfed is not

providing proper promotional offer in terms of advertisements, offers,

discounts etc. which is relatively high in other competitive brand. So it is

recommended that the advertisement, banner, posters, and other

promotional offer to the retailers should given to the retailers for the

mutual benefit.



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CONCLUSIONFrom the survey, it is clearly related that the company has

market in Orissa, basically at Cuttack and Bhubaneswar area. While

comparing to all ice-cream company, the price of the quantum is

relatively high based on its quality .which will make the retailer to go

for another product. The company must adopt the price-range which

will be affordable by the consumers, retail counters, hotels,

restaurants and also push-cart sales person. The company must

consider the dealers as their part but not separate entity as they play a

dominant role for the product, its promotion and marketing network.

Take feed-back and ideas from the groups and according to

these suggestion and ideas make a relevant and better strategy. The

most tremendous factor is that to motivate the groups to meet the

target and always build good relation and co-operation in the market

with dealers and also organizations. Sub-ordinate companies should

be taken care of dealer’s. and Give time to dealers for cash repayment

of sales easily.



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BIBILOGRAPHY:-Books referred:-

1- Company journals

2- Magazines

3- Company website[for secondary data]

4- Person /Agencies/Contact

a- Retailers

b- Hotel and restaurant owners

c- Distributors

d- Consumers

e- Company representatives

f- Push-cart sales person

g- WWW.GOOGLE.COM

h- WWW.OMFED.ORG.IN


http://WWW.GOOGLE.COM/

Annual Project Report Omfed

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