Dissertation

On

Performance of product portfolio offered by Milk

Mantra with respect to its competitors
(Report submitted for the partial fulfilment of the requirement for degree of Post Graduate
Diploma in Management from Regional College of Management affiliated to AICTE)

Submitted by:

Sayam Roy
Regd. No 1301247023

Internal guide
Prof. Dr. Ajitabh Das
Faculty of marketing Management
RCMA, Bhubaneswar

BHUBANESWAR, ODISHA
Chakadola Vihar, Chandrasekharpur, Bhubaneswar 751023, Odisha
Tel: +91 674 2301595/ 2300455 / 466, Fax : +91 674 2300421, Email: director@rcm.ac.in

DECLARATION

I, Sayam Roy, pursuing PGDM (Post Graduate Diploma in Management) from Regional College of
Management Autonomous, Bhubaneswar, do hereby declare that this project on Performance of product
portfolio offered by Milk Mantra with respect to its competitors undertaken by me is a true work of
myself and is not submitted to any other university or published at any other time before for the purpose of
any degree or diploma.

Place:
Date:
Sayam Roy
Regd. No. 1301247023
2

ACKNOWLEDGEMENT
As a student of Regional College of Management Autonomous, Bhubaneswar I would like to extend my
sincere gratitude and thanks to Prof. Dr. Ajitabh Dash (RCMA) whose persistent supervision and
cooperation has been the source of inspiration for me during the internship.
It was because of his immense help and support that this project has been duly completed.

However, I accept the sole responsibility for any possible error and would be extremely grateful to the
readers of this dissertation if they bring such mistakes to my notice.

CONTENTS
1) Chapter 1 : INTRODUCTION..5 to 8
i) Introduction
ii) Background of the study
iii) Statement of the research problem
iv) Relevance of the study
v) Objective of the study
vi) Research hypothesis
vii) Limitation of the study
2) Chapter 2 : LITERATURE REVIEW9 to 15
i) Review of past literature
ii) Literature gap
iii) Contribution of the present study
3) CHAPTER 3 : CONCEPTUAL FRAMEWORK16 to 21
i) Introduction
ii) Role of Marketing mix in Milk Products
iii) Product Polio As A Component Of Marketing Mix
iv) Profile of Milk Mantra
v) Profile of its Competitors
4) Chapter 4 : RESEARCH METHODOLOGY...22
i) Introduction
ii) Method of investigation
iii) Sample for the study
iv) Sample selection
v) Period of the study
vi) Statistical tools and techniques used
5) Chapter 7: DATA ANALYSIS AND INTERPRETATION...23 to 26
6) Chapter 8 : FINDINGS AND CONCLUSION.27 to 32
i)
ii)
iii)
iv)

Findings of the study

Suggestions
Conclusion
Managerial implication

7) BIBLIOGRAPHY....32

Chapter 1: INTRODUCTION
i) Introduction
Indian Dairy Industry
The Indian dairy industry has been through an evolution right from the British era till today. It has come
a long way over the years from a milk production volume of 55.7 million tons in 1991-92 to 127.3
million tons in 2012. Steadily and firmly, it has cruised to become numerouno in the list of milk
producing countries and the smallholder milk producers have scripted this success story. Today, the
Indian Dairy industry stands at a mammoth size of US$ 70 billion. Given the highest mulch bovine
population of 115.487 million in the world, India exhibits tremendous potential to further strengthen its
position in the world dairy market. The operation flood program promoted and implemented by the
National Dairy Development Board (NDDB) has been instrumental in bringing about a white revolution
in India. Changing lifestyle, feeding habits and urban culture has somewhat effected the transition of the
Indian dairy Industry into a more of a demand driven, highly diversified and exciting business
proposition.
The country accounts for more than 15 per cent of worlds total milk production and is also the worlds
largest consumer base of dairy products, consuming almost all of its own milk production. Dairying has
been regarded as one of the activities that could contribute to alleviating the poverty and unemployment
especially in the droughtprone and rainfed areas. In India, about threefourth of the population live in
rural areas and about 38 per cent of them are poor. Therefore among these people, as well as the large
vegetarian segment of the countrys population, dairy products provide a critical source of nutrition and
animal protein to millions of people in India.
Prior to year 2000, India was not noticed by most international dairy companies, as the country was
neither an active importer nor an exporter of dairy products.
Currently, the Indian dairy market is growing at an annual rate of 7 per cent. Despite the increase in
production, a demand supply gap has become imminent in the dairy industry due to the changing
consumption habits, dynamic demographic patterns, and the rapid urbanization of rural India. This
means that there is an urgent need for the growth rate of the dairy sector to match the rapidly growing
Indian economy.

The Structure of the Indian Dairy Industry

The Indian dairy industry is mainly constituted of 22 state milk federations, 110,000 dairy cooperative
societies involving more than 12 million milk producers. There are also some major private players in
the field which further improved the dairy sector of the country namely; Amul, Britannia, Nestle, Mother
dairy and Nandini etc., to name a few. The home company "Amul" is ranked 18thin the world (IFCN,
2007), Fonterra of New Zealand being the no. one player in this field.
According to NDDB, the dairy cooperative network includes 177 milk unions operating in over 346
districts and covering 1, 33,349 village level societies is owned by around 13.9 million farmer members
of which 3.9 million were women. The Indian dairy industry contributes about 69 per cent to the entire
bulk of output from the livestock sector. The dairy sector has grown robustly in the past years and has
increased the per capita availability to around 256 grams.
5

Dairy cooperatives account for the major share of processed liquid milk marketed in the country. Milk is
processed and marketed by 170 milk producers' cooperative unions, which federate into 22state
cooperative milk marketing federations. The organized sector still remains a minor stakeholder and
handles about 20 per cent of the milk whereas the unorganized sector of the dudhiyas and mithaiwallas
still controls about 80 per cent of the industry. The structure of Indian dairy industry, as mentioned in
figure, further reveals that organized sector of Indian dairy industry comprise of private dairies, various
Milk Cooperatives Societies and Government dairies.

Private Dairies
(532)

Indian Dairy
Industry

Organised
20%

Cooperative
Societies (258)

Unorganised
80%

Government
(46)

India has the credit of being the largest producer as well as the biggest consumer of milk in the world. It
also has the worlds largest dairy herd (comprised of cows and buffalos). In 2010-11, livestock generated
output worth INR 2,075 billion (at 2004-05 prices) which comprised 4% of the GDP and 26% of the
agricultural GDP. Indias milk production accounts for 16% of total global output. The dairy industry is
expected to grow 4-5% per annum. In the past 20 years, milk production in India has doubled and has
reached the 116.2 million tons a year thus becoming Indias No.1 farm commodity. The current market
size of the dairy industry is INR 2.6 trillion and is estimated to grow up to INR 3.7 trillion by 2015.
As per the latest statistics of National Dairy Development Board (NDDB), the dairy cooperative network
in the country includes 177 milk unions covering 346 districts and over 1, 33,000 village-level societies
with a total membership of nearly 14 million farmers. All the statistics given above are indicators of a
flourishing dairy sector in India providing suitable opportunities to the industries engaged in the dairy
business.
The Orissa State Cooperative Milk Producers Federation Limited (OMFED) is a Dairy Cooperative
Society at the apex level. The main activities of OMFED are production, promotion, procurement,
marketing and processing of milk and its various products for the economic development of the
community of village farming in the state of Orissa. It is the leading organized milk producer of Odisha
and has come into existence to integrate the milk producers in rural areas with consumers in the urban
areas with an enterprising aptitude. OMFED is clearly the market leader till date in Odisha.
On the other hand the name Milk Mantra conveys a message that it is possible to establish a strong link
between the consumer and the producer, without compromising on quality, fair price for producers and
returns for investors. The company has successfully provided alternative products and, in the process,
demonstrated consumers will not hesitate to pay more for quality products. The company has made
inroads into the well-established supply chain through ethical milk sourcing.
6

ii) Background of the study

Dairy farming in Odisha employed more than 60% 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 capita availability of milk 136 grams. There is total of 14.3
million milch cattle up to 2007. Majority of dairy farmers are small and marginal farmers.
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.
The key players are:o AMUL: Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
The word amul (
) is derived from the Sanskrit word amulya ( ), meaning rare,
valuable .The co-operative was initially referred to as Anand Milk Federation Union Limited
hence the name AMUL. Formed in 1946, it is a brand managed by a cooperative body, the
Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly
owned by 3 million milk producers in Gujarat. Amul spurred India's White Revolution, which
made the country the world's largest producer of milk and milk products. In the process Amul
became the largest food brand in India and has ventured into markets overseas. Dr Verghese
Kurien, founder-chairman of the GCMMF for more than 30 years (19732006), is credited
with the success of Amul. The Amul Model is a three-tier cooperative structure. This
structure consists of a dairy cooperative society at the village level affiliated to a milk union
at the district level which in turn is federated into a milk federation at the state level. Milk
collection is done at the village dairy society, milk procurement and processing at the District
Milk Union and milk products marketing at the state milk federation. The structure was
evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation
Flood programme. It is known as the 'Amul Model' or 'Anand Pattern' of dairy cooperatives.
o MILK MANTRA: - Founded in late 2009 by Mr. Srikumar Misra (XIMB Graduate), India's
first VC funded agri-business startup. A dairy venture with a focus on functionally
differentiated products & leveraging brand capital for creating sustainable impact. The Milky
Moo brand is one of the fastest growing dairy foods/FMCG brands in this part of the world.
Milk Mantra is now procuring from area like Bhubaneswar, Cuttack and Puri.
o OMFED: - Started in 1980 OMFED as a brand name has become an integral part in its
existence. OMFED has seven dairy plants, these dairies are involved in processing of milk
products in various packing sizes for marketing it throughout the state of Orissa. OMFED has
seven dairy plants at Bhubaneswar, Rourkela, Sambalpur, Balasore, Dhenkanal, Keonjhar,
and Jeypore to process milk received from approximately 1-lakh farmers through 10 chilling
centers of District Milk Producers Union. Under the brand "OMFED" these dairies are
involved in processing of milk products in various packing sizes for marketing it throughout
the state of Orissa. OMFED as a brand name has become an integral part in its existence.
Thus its effectiveness as a co-operative organization in handling rural milk procurement,
processing and marketing has been proved beyond doubt in the state of Orissa.

iii) Statement of the research problem

To analyze the performance of product portfolio offered by Milk Mantra with respect to its
competitor.
iv) Relevance of the study
To find out the acceptance level of Milk Mantra products among customers with respecte to its
competitors.
v) Objective of the study
To describe the product performance of Milk Mantra.
To analyze the perception of customers towards the products of Milk Mantra.
To develop a perceptual map for Milk Mantra products with respect to its major
competitors by taking into consideration eight attributes namely availability, nutritional
value, fat content, odor, taste, freshness, hygiene and price.
vi) Research hypothesis
Whether customers have a better perception towards the Milk Mantra products compared to its
competitors?
vii) Limitation of the study
Survey area was confined to Bhubaneswar only.
Survey was totally confined to the customers who prefer only one brand each and doesnt
include customers who consume products from more than one brand.
Time span was limited to 1 month.
Questions were mostly closed ended.

Chapter 2: LITERATURE REVIEW

(i) Review of past literature
Literature Review 1:
Opportunities and Challenges in Indian Dairy Industry Supply Chain:
A Literature Review by Rajeev Kumar
Opportunities and challenges in Indian dairy industry
The entire dairy Industry in India has its base in the small holders and marginal farmers. These prime
stakeholders of the entire value chain of milk are deprived of minimum resources of land, labour, capital etc.
The other issues and challenges in Indian dairy industry at the grass root levels are given below:
Issues and Challenges at the Small holder Level
Inadequate feeding of animals: More disease incidence: Small holders who are not members of
cooperative societies often get deprived of good animal health care facilities in terms of routine
vaccination and prophylactic disease prevention measures. Financial constraints generally inhibit
these farmers access to the organized veterinary services and they still rely on the quacks and
conventional treatment methods.
Low genetic potential of animals: The stock of animals even if crossbred has less percentage of
exotic genes, which lowers their milk production. There is indiscriminate artificial insemination
without proper record keeping which leads to repeated inbreeding and decreased production potential
of the animals.
Lack of chilling capacities: The farmers having high yielding varieties of the cattle and buffalo
have a different issue all together. These farmers milk their animals 2-3 times in the day and every
time they have to carry this milk to the distant collection centres where there is a cooling facility or
else the milk goes waste if there is delay.
Exploitation of farmers: Those farmers who do not conform to any of the cooperative societies get
exploited at the hands of the contractors of the private dairies with regard to payment of exact dues
as per the fat content of the milk.
High production costs: Compared to the amount of efforts and maintenance costs being involved in
the production of milk, the farmers do not get remunerative prices due to low market prices and lack
of elasticity in the prices of milk.
Delayed payment of dues: The farmers are not only paid less according to the quality of milk but
also their payment is delayed from time to time. This comes in line with the sick and non-performing
milk cooperative unions, which pass on the perils of mismanagement and marketing losses to these
poor farmers.
Issues and Challenges at Collection Level
Milk base mainly consisting of small holders: The majority of dairy farmers being small and
marginal the average holdings of animal come to around 5 animals per farmer. This brings in the
logistical challenge of collecting milk from each farmer twice on a daily basis. The farmer usually
loses much time waiting in the queue to deposit their milk at the collection centres thus resulting in
loss of networking man-days.
Involvement of too many intermediaries: Keeping in view the large no of intermediaries involved
in the milk collection procedures the milk loses its quality in the process. This leads to increased
microbial contamination and fluctuation in the volume of the milk before reaching the collection
centres and bulk coolers.

Gaps in information: In this era of information technology, the dairy sector is unorganized with
respect to the support information. There is no record of the milk, which is being collected from
different milk producers at the collection centres. If anything goes wrong in terms of the discovery of
9

zoonotic disease organisms at a later stage there is no scope of backtracking to the farmer. Though
there has been a success in this regard with the e-governance project being implemented in AMUL
with the help of IIM Ahmadabad, it has not been replicated by all the cooperative societies in the
sector.
Absence of a screening system: Milk before being pooled up at the collection centre from various
farms and animals are not subjected to any screening for the zoonotic diseases and adulterants and
contaminants in many of the cooperative societies. This often results in spoilage of the entire batch
of the pooled milk if one of the milk cans goes undetected. Linking back to source as such is not
possible in the absence of a database.
Lack of Infrastructure: When there is a thrust on increasing the milk production, then there should
be ample amount of facilities to handle it. There is a dearth of required infrastructure of chilling
plants and bulk coolers due to which so much of milk goes waste due to spoilage.
Manipulation of the quality of milk by the farmers: The farmers not being able to get fair and
remunerative prices for the milk often tend to give adulterated milk at the collection centres. They
often add additives to forge the fat content of the milk and get better price for the lot. Addition of
vegetable fat, animal fat, starch, etc. has been quite frequent among the farmers to alter the fat and
solid content of the milk.

Issues and Challenges at the Processing Level

Seasonality of production and fluctuating supply: India being a tropical country renders a hot and
humid climate for the animals and thus fluctuations in the milk production. There is a flush season in
the cooler parts of the year whereas the production goes down in the warmer months. Thus, at times,
the surplus of milk exceeds the processing capacity and milk goes waste whereas on the other hand
the processing capacity goes underutilized in the lean period.
Absence quality standards: There is absence of stringent quality standards like HACCP, Codex etc.
in most of the cooperative milk unions, which bars Indian dairy products for exports into the foreign
market.
Adulteration and Food safety: The most important aspect of milk processing is its purity and
wholesomeness. There has been an instance of cheap substitution of skimmed milk powder with
below standard substances, which is hazardous to health. Even though there are certain Food safety
Acts but still every other day we get to know about various tankers of spurious milk being
apprehended.
Lack of trained and skilled workers: There is lack of trained and skilled workers who can handle
the milk processing operations hygienically and safely.
Issues and challenges at the Storage and Logistics Level
Lack of cold storage facilities: Milk being a highly perishable product requires be processing or
cooling as soon as possible after milking, to prevent spoilage and contamination. However to ensure
this there is a need of refrigerated milk silos for storage which are not present at the village levels.
Gap in the cold chain and transport facilities: There are long distances to be covered to reach bulk
milk coolers from the collection centre. There is a shortage of refrigerated vans and insulated tankers
for ferrying the chilled milk to the processing plants
Issues and Challenges at the Co-operative Level
Less number of member farmers: The cooperative model though successful has not been able to
include all the farmers into the fold. There are still many potential farmers who use the informal
channel of milk sale and delivery.
Lower participation in the decision making process: There is huge government interference in
many of the co-operative federation activities, which leads to lesser say of the farmers in many
crucial issues.
Losses: Poor management of the some of the village cooperatives have led to huge losses in the trade
due to which farmers have lost faith in these entities.
10

Low prices of milk: The co-operatives declare low prices for procuring milk from the farmers,
which benchmarks the prices and forces other players to sell milk at the same prices.
Inefficient services: The cooperatives have also failed in many parts of the country in providing the
basic inputs in terms of quality feed, exotic germplasm and veterinary services.
Insufficient Infrastructure: Some of the co-operatives are lacking the cooling and milk testing
facility at the village level collection centres.

Issues and challenges for Marketing

Majority of the Market is still unorganized: The milk market in India still faces the challenge of
getting organized. The unorganized market makes it competes with the organized market in relation
to prices.
Acceptability of the Consumer base: A large fraction of the consumer base in India is yet to accept
the clean and supple milk from organized dairies due higher costs. The mind set of buying fresh
whole milk from the milkman is still prevalent in the Indian consumers.
Less penetration to the rural Market: Most of the milk produced by the dairy co-operatives goes
to the urban market. The rural consumers are still dependent on the informal and unorganized market
channels. Lack of transparent milk pricing System: There is no specific minimum support price of
the milk in the system, which makes it unremunerated for the farmers.
CONCLUSION
Highly competitive Indian dairy industry poses threat/challenges for the survival in the global dairy market.
There is no doubt that there is tremendous scope for the growth of the dairy industry in the new millennium.
The product mix of world dairy trade is likely to shift further towards cheese. This has been developed in the
world markets. As the market opens up, consumption trends associated with these markets will have
increasing influence on the world trade. Whole milk powder is likely to continue to be a substantial
beneficiary and growth substantially in the Middle Eastern countries.
The dairy industry in India has been on a steady path of progression since Indian independence. It has grown
from producing 17 million tons of milk in 1951 to producing 127.3 million tons in 2012. Today, India is one
of the largest milk producing countries in the world. This solid progress is primarily attributable to structural
changes in the Indian dairy industry brought about by the advent of dairy cooperatives. The Indian dairy
industry reported a market size of USD 48.5 billion in FY2011.
With a Compound Annual Growth Rate (CAGR) of 16 percent, it is anticipated to reach USD 118 billion in
2017. On the back of a rise in disposable income, coupled with strong demand for dairy products, the Indian
dairy industry is all set to experience high growth rates in the next five years. The consumption pattern of
dairy products in India is unique as compared to some of the western countries. Consumption is primarily
skewed towards traditional products; however, westernized products are gradually gaining momentum in the
urban areas. Interestingly, buffalo milk accounts for the largest share of the total milk produced in the
country. Since the pricing of milk is based on the fat content, buffalo milk offers higher profit margins as
compared to cow milk as it contains higher fat.
The Indian dairy sector is characterized by high fragmentation. It is dominated by the unorganized sector
comprising of 70 million rural households. The per capita availability of milk in India stands at 289.4 grams
per day. Backed by strong domestic demand, the per capita availability of milk is anticipated to reach 336
grams per day in FY 2017. Currently, the Indian dairy market is growing at an annual rate of 7 per cent.
Despite the increase in production, a demand supply gap has become imminent in the dairy industry due to
the changing consumption habits, dynamic demographic patterns, and the rapid urbanization of rural India.
This means that there is an urgent need for the growth rate of the dairy sector to match the rapidly growing
Indian economy. Despite being the one of the largest milk producing countries in the world, India accounts
for a negligible share in the worldwide dairy trade. The ever-increasing rise in domestic demand for dairy
products and a large demand-supply gap could lead India to be a net importer of dairy products in the near
future.
11

Literature Review 2:

The Economics of Milk Production in Orissa, India,with Particular Emphasis on Smallscale Producers
by Amit Saha, Otto Garcia and Torsten Hemme

Results
Milk Production in India and Orissa
India is a world leader in milk production, contributing about 15 percent to total world output. In 2002, India
produced an estimated 84 million MT, second only to the EU. Milk yields in India, at 694 kg per cow per
year, however, are extremely low compared to other large milk producing countries such as the USA,
Germany or New Zealand. Average milk yields per animal in the US were 11 times higher than those of
India, while for New Zealand the figure is 5 times higher. Farm gate prices received in the US were twice as
high, while those received in Germany were 50 percent higher than those received by Indian farmers. Only
in New Zealand were farm gate prices found to be slightly lower.
Orissa does not contribute significantly to milk production in India. With only 1.7 percent of the dairy cow
population and 0.4 percent of the buffalo population in 2002, milk production in Orissa contributed only 1.1
percent to the milk produced in India. Most of the milk in Orissa is produced on farms with marginal to
small landholdings, less than 2 hectares, and with 3 or 4 animals. Even by Indian standards, milk yields in
Orissa are extremely low (1/4 of the Indian average). Farm gate prices of milk are only slightly lower than
the Indian average, but still a little higher than those received in New Zealand. The per capita milk
production in Orissa is very low at 26 kg per capita per year while the annual per capita production in India
is 82 kg.
Analysis of Typical Farms in Ganjam and Gajapati Districts of Orissa
Based on the IFCN methodology, six farm types were identified as typical and were subjected to detailed
analyses. Two small dairy farms, IN-2CO (2 local cows and less than a hectare land) and IN-2BO (2
buffaloes and 1-2 ha land), represent over 95 percent of the dairy farms in Orissa. The farms IN-6CO (6
crossbred cows in a peri-urban area) and IN-6BO (6 grade buffaloes, also in a peri-urban area) represent the
fast growing medium sized commercial farm types in Orissa. These farm types provide a picture of the
economies of scale and the effect of location peri-urban and urban areas. Farms IN-15CO (15 local cows)
and IN-9BO (9 local buffaloes) represent only 5 percent of the farms in rural areas but have distinctly
different production and management characteristics due to their large herd size and access to areas for
common grazing.
Dairy production systems
Local, non-descript cows are the main type of dairy animals followed by buffaloes and crossbred cows. The
family is in charge of the management of the farm but they use the opportunity to hire very cheap labour.
Fallow and forest land can be used for grazing. Feed rations are based on agricultural by-products such as
rice bran, rice polish, broken rice, paddy straw and pulses meal. Commercial cattle feed is only used by the
medium sized commercial farms such as IN-6CO. Milking is done by hand. In terms of non fat corrected
milk (ECM), production per dairy animal ranges from 210 to 1,305 kg/year.

12

Household comparison
Household incomes range from 420 US-$ to 1,570 US-$ per year. Income structure is quite diverse with
non-cash benefits being prominent in the small systems. For example, draught power, manure and fuel from
cow dung, and milk used in the household account for 16 percent of the household income in IN-2CO. Off
farm income is quite important for all the stall fed systems in Orissa and constitutes 5 to 45 percent of the
household income.
Whole farm comparison
The returns from farming range from 460 US-$ to 2,910 US-$ per year. The dairy contributes 25 to 85
percent to the whole farm returns. The returns from cash crops are also important, ranging from 15 to 70
percent, depending on farm type. Net cash farm income closely follows the level of farm returns with the
exception of the large commercial cow system (IN-15CO), where net farm income is relatively low, mainly
due to comparatively high cash costs and hired labour costs in dairy per 100 litres ECM. The highest net
cash farm income was obtained in the commercial buffalo based dairy farming system (IN-6BO), mainly
due to lower unit costs of milk production.
The net cash farm income ranges from 190 US-$ to 1,100 US-$ per year. The low net cash income of 190
US-$ per year (IN-2CO) is due to low milk yields, small size of land holding, and slightly lower milk prices
paid by the cooperative due to lower fat content and remote location.
Comparison of the dairy enterprise - Costs of milk production
The buffalo-based pastoral dairy farming system (IN-9BO) and the commercial stall-fed crossbred cow
based dairy farming system (IN-6CO) have the lowest cost of milk production per 100 litres of ECM at
around 12.3 to 12.9 US-$. The commercial buffalo-based dairy farming system with grade buffaloes, IN6BO, has slightly higher costs at 14.6 US-$ per 100 kg ECM, mainly because of slightly higher purchased
feed costs. These farm types have the potential to compete in the long run with imports of dairy products and
also to produce milk for export, provided international quality standards can be achieved and the dairy chain
being internationally competitive.
In the small farm systems, the buffalo-based rural farm (IN-2BO) produces milk at a significantly lower unit
cost (at 19.9 US-$ per 100 kg ECM) than the IN-2CO cattle based farm which could only produce at 31.4
US-$. This can be explained by higher milk yields and higher labour productivity in IN-2BO. It has to be
noted, however, that the main purpose of IN-2CO is to produce milk for home consumption (30 percent of
the production) by converting locally available feedstuff into milk, livestock, fuel and draught power for its
crop activities. Given that IN-15CO can produce milk at comparatively lower costs (15.3 US-$ per 100 kg
ECM), there is a potential to lower milk production costs, but this requires the realization of economies of
scale in similar cattle-based farms through expansion to larger herd sizes. Another alternative could be a
herd of a cow and a buffalo for uniform milk production in the year (see Annex A-6).
As in small dairy farms in most other countries, farm IN2-CO will tend to persist as long as alternative
employment opportunities (at 0.14 US-$/hour in this case) are not available. With the existing wage rate for
dairy labour at 0.11 US-$/hour, the chances of obtaining available alternative employment seems remote.
Comparison of dairy farms in Orissa and Haryana
A comparison of typical and leading-edge farms in Orissa with corresponding farms in Haryana reveals that
milk production in Orissa is relatively cost competitive. Although milk yields in Orissa are much lower than
13

in Haryana, farmers in Orissa produce milk at competitive costs due to lower land costs and lower wage
rates. The availability of grazing land in Orissa and cheaper feed also contributes to lowering the costs of
milk production. Buffalo milk production was found to be more cost competitive in Orissa than in similar
farms in Haryana. However, farm gate milk prices are lower by around 5 percent in Orissa and farm incomes
are much lower in Orissa than in Haryana due to low milk yields and lower off-farm income.
Dairy chain in Orissa
Most of the milk marketing is done through the informal sector with milk being sold to the milkman or
locally. Farmers are encouraged to sell buffalo milk with higher fat content to co-operatives by milk pricing
based on fat content and assurance of seasonal fixed prices throughout the year.
Producer milk prices are 14 percent higher in the informal sector than in formal sector (milk union
cooperative). Consumer prices for fluid milk are also lower in the informal sector through the milkmen and
farmers selling directly in the rural market. Both the consumer and the producer markets are mostly captured
by the informal sector although the quality of milk handled through this channel is poor. Consumers have a
high price elasticity of demand for milk products. Without information on milk quality or means to check for
adulteration, consumers will continue to prefer the cheaper products and the informal sector will maintain its
hold of the major share of milk markets in Orissa.
It is estimated that only about 5 percent of total marketable supply of milk is handled by the formal sector,
the cooperatives. Estimates show that the cooperative milk union selling toned milk with 3 percent fat
receives value-added and retail margins of 0.22 US-$ per kg of raw milk used and of 0.06 US-$ for other
raw materials used (Skimmed milk powder). In the informal sector, the local milkman selling raw milk in
the nearby town or city receives a processing and retailing margin of 0.13 US-$ per kg of milk handled
followed by the peri-urban farmer selling milk directly in the town, who
The Economics of Milk Production in Orissa, India, with Particular Emphasis on Small-scale Producers 4
receives a margin of 0.12 US-$ per kg milk sold. The costs of value-added in the formal sector, however, are
significantly higher than in the informal sector.
Conclusions
The present study analyzed six typical dairy farming systems in Orissa. All the systems cover their cash
costs and contribute positively to farm income.
The most common dairy farming system, IN-2CO (2 local cows) produces very low cash farm income and
generates negative entrepreneurial profits. The persistence of this system is largely due to the low cash costs
of milk production. Moreover, given the scarcity of alternative employment opportunities for family labour,
the dairy activity produces a relatively good cash margin of around 10 US-$ per 100 kg ECM. There is
potential for improving farm income by improving milk yields and increasing herd size. The other small
dairy farming system, IN-2BO (2 buffaloes), has even lower costs of milk production than IN-2CO, mainly
due to its higher milk yields. Although the lowest net costs of milk production are incurred by the pastoral,
buffalo-based dairy farming systems (IN-6BO), this production system is not very prevalent in the region
given the scarcity of common grazing areas.
The share of off-farm income was the highest in the most prevalent small dairy farming system (IN- 2CO).
Family labour is a relatively important component of cost in small subsistence farm types like IN-2CO and
IN-2BO. In the commercial farm types such as IN-6CO and IN-6BO, purchased feed costs are
proportionately higher. Other returns from dairy such as cow dung for fuel and draught power are
14

proportionately higher in the small farms. An important component of the dairy farming system that results
in significant differences in farm profits are the returns to labour. The returns to labour are very low for the
small farms but much above the existing wage level in case of the commercial farms (IN-6CO and IN-6BO).
In case of pastoral systems, IN-9BO had comparatively higher returns to labour than IN-15CO mainly due to
the higher milk yields of the buffalo-based system.
A comparative analysis of typical dairy farms in Orissa and Haryana revealed differences in cost and
productivity of dairy farming in the two states. A large potential to reduce milk production costs of
smallholder dairy farming and increase family farm income through milk production exists in Orissa by
better breed, feed and herd management. Smallholders using buffalo for milk production in Orissa were
found to be more cost competitive than similar farms in Haryana. Hence suitable strategies to promote such
buffalo-based systems should have potential for improving the production and competitive position of
dairying in Orissa.
(ii) Literature gap
Does OMFED still enjoys the benefits of market leader that it used to 2-3 years back or is
it losing some grounds to its competitors like Milk Mantra, Amul, Kamdhenu.
If OMFED is still the market leader and its acceptability among the customers is highest
then how come Milk Mantra and or others are evolving and expanding at such a rapid
pace in Odisha and hence meticulously leveraging the power of branding and
merchandising and is using digital media extensively to promote their products.

(iii)Contribution of the present study

The study describes the current prevailing situation of dairy industry in Odisha.
It describes the product performance of key dairy players like OMFED, Amul, Milk
Mantra and thus helps to analyze the customers perception to contribute towards
developing a perceptual map.
Hence it helps to determine the actual position of Milk Mantra with respect to its
competitors in the Odisha dairy industry.

15

CHAPTER 3: CONCEPTUAL FRAMEWORK

(i) Introduction
A conceptual framework is an analytical tool with several variations and contexts. It is used to make
conceptual distinctions and organize ideas. Strong conceptual frameworks capture something real and do
this in a way that is easy to remember and apply.
Perceptual mapping is a diagrammatic technique used by asset marketers that attempts to visually
display the perceptions of customers or potential customers. Typically the position of a product, product
line, brand, or company is displayed relative to their competition.
Perceptual maps can have any number of dimensions but the most common is two dimensions.
Perceptual maps need not come from a detailed study. There are also intuitive maps (also called
judgmental maps or consensus maps) that are created by marketers based on their understanding of their
industry. Management uses its best judgment. It is questionable how valuable this type of map is. Often
they just give the appearance of credibility to managements preconceptions.
When detailed marketing research studies are done methodological problems can arise, but at least
the information is coming directly from the consumer. There is an assortment of statistical procedures
that can be used to convert the raw data collected in a survey into a perceptual map.
(ii) Role of Marketing mix in Milk Products
The Marketing mix is a set of four decisions which needs to be taken before launching any new product.
These variables are also known as the 4 Ps of marketing. These four variables help the firm in making
strategic decisions necessary for the smooth running of any product /organization. These variables are
1. Product
2. Price
3. Place
4. Promotions
Marketing mix is mainly of two types.

Product marketing mix Comprised of Product, price, place and promotions. This marketing mix
is mainly used in case of Tangible goods.
Service marketing mix The service marketing mix has three further variables included which are
people, physical evidence and process.

The term marketing mix was first coined by Neil H Borden back in 1964 in his article The concept of
marketing mix. Several strategic analysts over the years believe that the marketing mix can make or break
the firm. Having the right marketing mix at the start of the marketing plan is absolutely essential. Over time
the concept of marketing mix has provided a steady platform for the launch of a new product or business.
As mentioned before, the marketing mix is characterized by four different but equally important variables.
These variables are never constant and may be changed over time. However, a change in one of the variables
may cause a change in all the other variables as well. The variables are as follows

Product The first thing you need, if you want to start a business, is a product. Therefore Product is
also the first variable in the marketing mix. Product decisions are the first decisions you need to take
before making any marketing plan. A product can be divided into three parts. The core product, the
augmented product and the tertiary product. Before deciding on the product component there are
some questions which you need to ask yourself.
o What product are you selling?
16

What would be the quality of your product?

Which features are different from the market?

What is the USP of the product?

Whether the product will be branded as sub brand or completely new?

What are the secondary products which can be sold along with primary (Warranty, services)

Based on these questions, several product decisions have to be made. These product decisions
will in turn affect the other variables of the marketing mix. For example You launch a car with
is to have the highest quality. Thus the pricing, promotions and placing would have to be altered
accordingly. Thus as long as you dont know your product, you cannot decide any other variable
of the marketing mix. However, if the product features are not fitting in the marketing mix, you
can alter the product such that it finds a place for itself in the marketing mix.

Pricing Pricing of a product depends on a lot of different variables and hence it is constantly
updated. Major consideration in pricing is the costing of the product, the advertising and
marketing expenses, any price fluctuations in the market, distribution costs etc. Many of these
factors can change separately. Thus the pricing has to be such that it can bear the brunt of
changes for a certain period of time. However, if all these variables change, then the pricing of a
product has to be increased and decreased accordingly.
Along with the above factors, there are also other things which have to be taken in
consideration when deciding on a pricing strategy. Competition can be the best example.
Similarly, pricing also affects the targeting and positioning of a product. Pricing is used for
sales promotions in the form of trade discounts. Thus based on these factors there are several
pricing strategies, one of which is implemented for the marketing mix.
Place Place refers to the distribution channel of a product. If a product is a consumer product,
it needs to be available as far and wide as possible. On the other hand, if the product is
a Premium consumer product, it will be available only in select stores. Similarly, if the product
is a business product, you need a team who interacts with businesses and makes the product
available to them. Thus the place where the product is distributed, depends on the product and
pricing decisions, as well as any STP decisions taken by a firm.
Distribution has a huge effect on the profitability of a product. Consider a FMCG company
which has national distribution for its product. An increase in petrol rates by Rs.10 will in fact
bring about drastic changes in the profitability of the company. Thus supply chain and logistics
decisions are considered as very important costing decisions of the firm. The firm needs to have
a full proof logistics and supply chain plan for its distribution.
Promotions Promotions in the marketing mix includes the complete integrated
marketing communications which in turn includes ATL and BTL advertising as well as sales
promotions. Promotions are dependent a lot on the product and pricing decision. What is the
budget for marketing and advertising? What stage is the product in? If the product is completely
new in the market, it needs brand / product awareness promotions, whereas if the product is
already existing then it will need brand recall promotions.
Promotions also decide the segmentation targeting and positioning of the product. The right
kind of promotions affect all the other three variables the product, price and place. If the
promotions are effective, you might have to increase distribution points, you might get to
increase the price because of the rising brand equity of the product, and the profitability might
support you in launching even more products. However, the budget required for extensive
promotions is also high. Promotions is considered as marketing expenses and the same needs to
be taken in consideration while deciding the costing of the product.
17

All the four variables of marketing mix are inter related and affect each other. By increasing the
pricing of the product, demand of the product might lessen, and lesser distribution points might be
needed. On the other hand, the product USP can be such that maximum concentration is on creating
brand awareness, thereby increasing need of better pricing and more promotions. Finally, the overall
marketing mix can result in your customer base asking for some improvement in the product, and the
same can be launched as the upgraded product.
The role of marketing mix in Strategy Marketing mix plays a crucial role while deciding
the strategy of an organization. It is the first step even when a marketing plan or a business plan is
being made. This is because marketing mix decision will also affect segmentation, targeting and
positioning decisions. Based on products, segmentation and targeting will be done. Based on the
price, positioning can be decided. And these decisions will likely affect the place and promotion
decisions. Thus, the marketing mix strategy goes hand in hand with segmentation targeting and
positioning.
To market the products every company needs to create a successful mix of right product at
right price at the right place through right promotion.
4Ps
Requirement of Customer
Thus providing
Fresh liquid milk
Product
Solution to Customer
Affordable by common people
Price
Value to customer
Extensive availability as and when required
Place
Access to Customer
Promotion Proper info regarding the fat content, nutritional value
Information to Customer
(iii)Product Portfolio As A Component Of Marketing Mix
Product is anything that can be offered to a market to satisfy a want or need.
Product Levels
CORE BENEFIT
BASIC
PRODUCT
EXPECTED
PRODUCT
AUGMENTED
PRODUCT
POTENTIAL
PRODUCT

Each level adds more value to the customers

Core Product: -This is the basic product and the focus is on the purpose for which the product
is intended. For example, a warm coat will protect you from the cold and the rain.
Generic Product: -This represents all the qualities of the product. For a warm coat this is about
fit, material, rain repellent ability, high-quality fasteners, etc.
Expected Product: -This is about all aspects the consumer expects to get when they purchase a
product. That coat should be really warm and protect from the weather and the wind and be
comfortable when riding a bicycle.
18

Augmented Product: -This refers to all additional factors which sets the product apart from
that of the competition. And this particularly involves brand identity and image. Is that warm
coat in style, its color trendy and made by a well-known fashion brand? But also factors like
service, warranty and good value for money play a major role in this.
Potential Product: -This is about augmentations and transformations that the product may
undergo in the future. For example, a warm coat that is made of a fabric that is as thin as paper
and therefore light as a feather that allows rain to automatically slide down.

PLC
Product Life Cycle is used to map the lifespan of the product, i.e. the stages through which a
product goes during its lifespan.
The four stages are: o INTRODUCTION:
Low and slow stage: The product sales are the lowest and move up very slowly at
snail's pace. Low levels of competition.
Highest Promotional Stage: During this period of introduction or the development,
promotional expenses bear the highest proportion of sales.
Highest Product prices: Lower input and sales absorbing fixed costs.
o GROWTH: Once the market has accepted the product, sales begin to rise. This is most crucial
stage and help the brand to establish in the market.
o MATURITY: Market becomes saturated because, the house hold demand is satisfied and
distribution channels are full.
o DECLINE: Sooner or later actual sales begin to fall under the impact of new product
competition and changing consumer tastes and preferences.
Features and strategies adopted at various stages of PLC.

FEATURES

INTRODUCTION
SALES
Low Sales
COST
High Cost/ Customer
PROFIT
Negative
CUSTOMERS Innovators
COMPETITION Few
MARKETING Create Product
OBJECTIVE
Awareness & Trial

GROWTH
Rapidly Rising Sales
Avg Cost/ Customer
Risisng Profits
Early Adopters
Growing Number

MATURITY
Peak Sales
Low Cost/ Customer
High Profits
Early & Middle Majority
Stable Number
Maximise Profit while
defending Market Share

DECLINE
Declining Sales
Low Cost/ Customer
Declining Profits
Laggards
Declining Number
Reduce Expenditure &
Maximise Market Share
Milk the Brand
Offer Product Extension &
Phase Out Weak
Diversify Brands and Items
Service Warranty
Product
Price to Match
Price to Penetrate Market
Cut Price
Competition
Build More Intensive
Build Intensive Distribution
Go Selective
Distribution

PRODUCT

Offer a Basic Product

PRICE

Charge Cost Plus

DISTRIBUTION

Build Selective
Distribution

ADVERTISING

Build Product Awareness Build Awareness and

Stress Brand Difference
Amongst Early Adopters Interest in the mass Market and Benefits

STRATEGIES

SALES
Use Heavy Sales
Reduce to take advantage Increase to encourage
PROMOTION Promotion to entire trial. of heavy customer demand. Brand Switching

Reduce to Level needed

to retain Loyality
Reduce to minimal
Level

19

(iv) Profile of Milk Mantra

Milky Moo

Milk

Curd

Paneer

Lassi

Buttermilk

(v) Profile of its Competitors

Omfed
Kandhamal
Organic
Products

Horticulture
Products

Milk & Milk

Products

Turmeric
Powder

Orange sip

Ghee

Cattle feed
products

Premium
gold

Milk
Pineapple
sip

Table butter

Ice Creams
Paneer

Curd

Mustard
seed

Deer
mash

Honey

Mineral
mixture

Lemon
Ginger

Squash

Chennapod
Jam
Peda
Sauce

Rabdi

Pickle

Lassi

Cold Cofee

20

Amul
Milk

Milk
powder
Nutramul

Mithai
Range

Bread
Spreads

Chocolates

Ice Cream

Fresh Cream

AMUL

Paneer
Pouch
Butter Milk

Dahi

Ghee

Beverage
Range

Amul
PRO

Amul Cattle
Feed

21

Chapter 4: RESEARCH METHODOLOGY

(i) Introduction
The process used to collect information and data for the purpose of making decisions is called
research methodology. The methodology may include publication research, interviews, surveys
and other research techniques, and could include both present and historical information.
(ii) Method of investigation
Collecting data and analyzing it through various statistical and marketing tools.
Primary Data: Primary data collected through questionnaire and interviewing the
customers.
Secondary Data: Collected from internet and from other research papers.
(iii)Sample for the study
Customers

Sample Size :100

Successful Survey : 75

(iv) Sample selection

Only those samples which provided completed responses were selected. Total of 75 samples
were selected out of 100.
AMUL: - 25
OMFED: - 25
MILK MANTRA: - 25
(v) Period of the study
1 month
(vi) Statistical tools and techniques used
Many statistical tools like,
Descriptive Statistics
Bar Charts
Have been used in this research to derive the conclusion

22

Chapter 5: DATA ANALYSIS AND INTERPRETATION

Do you like the taste
AMUL

OMFED

MILK MANTRA

Frequency

Percent

Frequency

Percent

Frequency

Percent

Strongly Disagree

20.0

16.0

Disagree

20.0

36.0

0
0

0
0

Neutral

36.0

28.0

20.0

Agree

20.0

20.0

15

60.0

Strongly Agree

4.0

0.0

0.0

20.0

25

100.0

25

100.0

25

100.0

Total

PERCENTAGE OF RESPONDENTS

Do you like the taste?

60.0
50.0
40.0
30.0
20.0
10.0
0.0

Disagree

Neutral

Agree

Strongly Agree

AMUL Percent

Strongly
Disagree
20.0

20.0

36.0

20.0

4.0

OMFED Percent

16.0

36.0

28.0

20.0

0.0

20.0

60.0

20.0

MILK MANTRA Percent

Do you feel that it has high nutritional value

AMUL

OMFED

MILK MANTRA

Frequency
3

Percent
12.0

Frequency
5

Percent
20.0

12.0

Neutral

10

40.0

Agree

Strongly Agree

Strongly Disagree
Disagree

Total

Frequency

Percent

36.0

0
0

0
0

12.0

20.0

28.0

16.0

10

40.0

8.0

4.0

16.0

10

40.0

25

100.0

25

100.0

25

100.0

PERCENTAGE OF RESPONDENTS

Do you feel that it has high nutritional value

40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0

Disagree

Neutral

Agree

AMUL Percent

Strongly
Disagree
12.0

12.0

40.0

28.0

8.0

OMFED Percent

20.0

36.0

12.0

16.0

16.0

20.0

40.0

40.0

MILK MANTRA Percent

Strongly Agree

23

Do you feel that the products have high freshness

AMUL

OMFED

MILK MANTRA

Frequency
3

Percent
12.0

Frequency
4

Percent
16.0

Disagree

32.0

Neutral

12.0

Agree

Strongly Agree

5
25

Strongly Disagree

Total

Frequency

Percent

24.0

0
0

0
0

36.0

10

40.0

24.0

16.0

15

60.0

20.0

2.0

8.0

0.0

100.0

25

100.0

25

100.0

Do you feel that the products have high freshness

% OF RESPONDENTS

60.0
50.0
40.0
30.0
20.0
10.0
0.0

Disagree

Neutral

Agree

AMUL Percent

Strongly
Disagree
12.0

32.0

12.0

24.0

Strongly
Agree
20.0

OMFED Percent

16.0

24.0

36.0

16.0

8.0

40.0

60.0

0.0

MILK MANTRA Percent

Do you feel the products are hygienic

AMUL

OMFED

MILK MANTRA

Frequency
3

Percent
12.0

Frequency
3

Percent
12.0

Disagree

12.0

Neutral

20.0

Agree

12
2
25

Strongly Disagree

Strongly Agree
Total

Frequency

Percent

12.0

0
0

0
0

32.0

20.0

48.0

10

40.0

15

60.0

8.0

1.0

4.0

20.0

100.0

25

100.0

25

100.0

Do you feel the products are hygienic

% OF RESPONDENTS

60.0
50.0
40.0
30.0
20.0
10.0
0.0

Disagree

Neutral

Agree

AMUL Percent

Strongly
Disagree
12.0

12.0

20.0

48.0

Strongly
Agree
8.0

OMFED Percent

12.0

12.0

32.0

40.0

4.0

20.0

60.0

20.0

MILK MANTRA Percent

24

Does the product have low fat content

AMUL

OMFED

MILK MANTRA

Frequency

Percent

Frequency

Percent

Frequency

Percent

Strongly Disagree

8.0

28.0

Disagree

24.0

28.0

0
0

0
0

Neutral

10

40.0

28.0

20

80.0

Agree

16.0

8.0

20.0

Strongly Agree

12.0

2.0

8.0

0.0

25

100.0

25

100.0

25

100.0

Total

Does the product have low fat content

% OF RESPONDENTS

80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

Disagree

Neutral

Agree

AMUL Percent

Strongly
Disagree
8.0

24.0

40.0

16.0

Strongly
Agree
12.0

OMFED Percent

28.0

28.0

28.0

8.0

8.0

80.0

20.0

0.0

MILK MANTRA Percent

Do you feel the pricing of the product is perfect

AMUL
Strongly Disagree

OMFED

MILK MANTRA

Frequency
4

Percent
16.0

Frequency
5

Percent
20.0

Frequency

Percent

28
16

10

40.0

16.0

7
4

Neutral

32.0

20.0

28.0

Agree

12.0

28.0

28.0

Strongly Agree

0.0

4.0

16.0

0.0

25

100.0

25

100.0

25

100.0

Disagree

Total

Do you feel the pricing of the product is perfect

% OF RESPONDENTS

40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0

Disagree

Neutral

Agree

AMUL Percent

Strongly
Disagree
16.0

40.0

32.0

12.0

Strongly
Agree
0.0

OMFED Percent

20.0

16.0

20.0

28.0

16.0

28

16

28.0

28.0

0.0

MILK MANTRA Percent

25

Products are available as and when required

AMUL

OMFED

MILK MANTRA

Frequency
0

Percent
0.0

Frequency
4

Percent
16.0

Disagree

10

40.0

Neutral

15

60.0

Agree

0.0

Strongly Agree

0.0

25

100.0

25

Strongly Disagree

Total

Frequency

Percent

24.0

13
7

52
28

32.0

8.0

8.0

12.0

5.0

20.0

0.0

100.0

25

100.0

Products are available as and when required

% OF RESPONDENTS

60.0
50.0
40.0
30.0
20.0
10.0
0.0

Disagree

Neutral

Agree

AMUL Percent

Strongly
Disagree
0.0

40.0

60.0

0.0

Strongly
Agree
0.0

OMFED Percent

16.0

24.0

32.0

8.0

20.0

52

28

8.0

12.0

0.0

MILK MANTRA Percent

Do you like the odour

AMUL

OMFED

MILK MANTRA

Frequency
8

Percent
32.0

Frequency
2

Percent
8.0

Disagree

8.0

Neutral

4.0

Agree

Strongly Agree

6
25

Strongly Disagree

Total

Frequency

Percent

32.0

3
4

12
16

12.0

20.0

32.0

36.0

32.0

24.0

3.0

12.0

20.0

100.0

25

100.0

25

100.0

Do you like the odour

% OF RESPONDENTS

40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0

Disagree

AMUL Percent

Strongly
Disagree
32.0

Neutral

Agree

8.0

4.0

32.0

Strongly
Agree
24.0

OMFED Percent

8.0

32.0

12.0

36.0

12.0

MILK MANTRA Percent

12

16

20.0

32.0

20.0

26

Chapter 6: FINDINGS AND CONCLUSION

(i) Findings of the study
1. Do you like the taste?
AMUL
Only 4% of respondents strongly like the taste.
40% dont like the taste at all.
36% are not sure whether they like it or not.
OMFED
A major 52% dont like the taste.
20% like the taste.
28% of respondents are not sure whether they like it or not.
Milk Mantra
80% of respondents do like the taste.
Rest 20% are not sure whether they like it or not.
Milk mantra is a clear winner in case of taste as there were no respondents in case of Milk mantra who
didnt like the taste.

2. Do you feel it has high nutritional value?

AMUL
36% do agree that it has high nutritional value.
24% consider that it doesnt have any nutritional value.
40% are not sure.
OMFED
56% disagree that it has high nutritional value.
12% are not sure.
32% do agree that it has high nutritional value.
Milk Mantra
80% do agree that it has high nutritional value.
Rest 20% are not sure.
Even here also Milk mantra is better accepted compared to other brands as more percentage of
respondents in case of it agree to its high nutritional content.

27

3. Do you feel that the products have high freshness?

AMUL
44% do agree that it has high freshness.
44% consider that it doesnt have high freshness.
12% are not sure.
OMFED
40% disagree that it has high freshness.
36% are not sure.
24% do agree that it has high freshness.
Milk Mantra
60% do agree that it has high freshness.
Rest 40% are not sure.
Milk mantra products are considered to be fresher as compared to Amul and Omfed as majority of
respondents (60%) consider it to be fresh.

4. Do you feel that the products are hygienic?

AMUL
56% do agree that it is hygienic.
24% consider that it doesnt have high freshness.
20% are not sure.
OMFED
24% disagree that it has high freshness.
32% are not sure.
44% do agree that it has high freshness.
Milk Mantra
80% do agree that it has high freshness.
Rest 20% are not sure.
In case of freshness Milk Mantra leads followed by Amul and then Omfed.

28

5. Does the product have low fat content?

AMUL
28% do agree that it is fat content is low.
32% consider that it has high fat content.
40% are not sure.
OMFED
56% consider that it has high fat content.
28% are not sure.
16% do agree that it is fat content is low.
Milk Mantra
20% do agree that fat content is low.
Rest 80% are not sure.
In this case the well accepted brands especially Omfed (in Odisha) and Amul have more acceptance as
compared to Milk Mantra. Majority of respondents are not sure about the fat content of Milk mantra
products.

6. Do you feel the pricing of the product is perfect?

AMUL
12% do agree that the pricing is perfect.
56% consider that the pricing is not perfect and it is overpriced.
32% are not sure.
OMFED
36% consider that the pricing is not perfect and it is overpriced.
20% are not sure.
44% do agree that the pricing is perfect.
Milk Mantra
28% do agree that the pricing is perfect.
44% consider that the pricing is not perfect and it is overpriced.
28% are not sure.
Only Omfed comes out to be the brand which is considered perfectly priced by customers followed by
Milk Mantra and then Amul.

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7. Products are available as and when required?

AMUL
Not even 1 customer agreed that the products are available readily.
40% consider that the products are not available as and when required.
60% are not sure.
OMFED
40% consider that the products are not available as and when required.
32% are not sure.
28% do agree that the products are available readily.
Milk Mantra
12% do agree that the products are available readily.
80% consider that the products are not available as and when required.
8% are not sure.
Milk mantra products are not at all readily available as and when required as perceived by the customers.

8. Do you like the odor?

AMUL
56% agreed that they like the odor.
40% consider that they dont like the odor.
4% are not sure.
OMFED
40% consider that they dont like the odor.
12% are not sure.
48% agreed that they like the odor.
Milk Mantra
52% agreed that they like the odor.
28% consider that they dont like the odor.
20% are not sure.
In case of odor the most acceptable brand is Amul followed by Milk Mantra and then last is Omfed.

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Portfolio analysis of Milk Mantra using G. E. multi factor analysis.

Milk Mantra

As we can see that Milk Mantra is in a position where it has to invest to build.

(ii) Suggestions

Milk Mantra should properly inform customers regarding the fat content through various
advertisements and promotions.

The pricing of the products must be reviewed by Milk mantra taking into consideration the price
set by its major rival Omfed. Proper pricing will make the products more acceptable to
customers.

There is a huge gap in the proper distribution of milk mantra products. Hence the logistics system
must be analyzed. Also Milk mantra must review and consider the distribution through district
milk union concept which may help them to revamp the distribution system.

In case of odor it has better acceptance compared to omfed and hence must utilize this fact for
business growth.

The major strengths of milk mantra lies in taste, high nutritional value, freshness and hygiene so
milk mantra must maintain the same and moreover look for opportunities to improve these as and
when required.

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(iii)Conclusion
Milk Mantra is in a position where the market attractiveness is high (being dairy industry) whereas
the business strength of Milk Mantra is medium.
It must challenge the market leader OMFED for leadership. It must build selectively on its strengths
and thus reinforce in vulnerable areas so that it can evolve to become a much stronger business unit
and hence become the market leader in dairy industry in Odisha.

(iv) Managerial implication

The product portfolio analysis suggests specific marketing strategies to achieve balanced mix of
products that will produce maximum long run effects from scarce cash and managerial resources.
In this case the portfolio analysis of Milk Mantra will help the organization to utilize on its strengths
and hence improve the other factors that are hindering their product acceptance in the Odisha market.

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CHAPTER 7: BIBLIOGRAPHY

Opportunities and challenges in indian dairy industry supply chain:

A literature review by rajeev kumar.

The economics of milk production in orissa, india,with particular emphasis on small-scale

producers by amit saha, otto garcia and torsten hemme.

Marketing Management (14th Edition) by Philip Kotler and Kevin Lane Keller.

Reference
1.
2.
3.
4.

en.wikipedia.org
www.google.co.in
http://www.segmentationstudyguide.com/
http://www.strategicmanagementinsight.com/

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