SUNSHINE FOODS

COOPERATIVE
PRESENTED BY:
UMAIN ZAHOOR
ABHINAV MAHAJAN
NAVJOT KAUR
DATE OF PRESENTATION
03-FEB-2016

CASE OUTLINE:
Introduction
Case brief
Internal Environment Analysis
Case Analysis
Course Orientation
Conclusion

Introduction: Sunshine foods cooperative is an Indian Dairy

cooperative which processes and markets dairy products.

Its headquarter was at Berhampur which later on was shifted to

Bhubaneswar since April 1997.

Rajiv Jena is its Assistant Marketing Manager.
SFC main activity starts from beginning i.e procurement

,processing and most important is marketing the milk and dairy

products.
Its main competitors are Prithwiraj Dairy, Vijaya Dairy, Visakha

Dairy.

CASE BRIEF :
Sunshine Foods Cooperative (SFC) is a dairy
products processing and marketing
organization. It is currently facing a situation
where it has to make decisions that have wide
ramifications. The decisions relate to various
aspects, some of which are strategic and a few
are operational in nature. The decision-maker
seems to be enthusiastic about the future
marketing plans of SFC. How to expand the
market and become a dominant player in that?

There are some alternatives, which have kept

the decision-maker preoccupied. How can the
growth in the revenue and profit of the
organization be achieved? The decision-maker
has depended on the market research report by
two researchers for taking the decision.
In the second week of August 2004, the
Assistant Marketing Manager of Sunshine Foods
Cooperative (SFC) (hereafter referred as SFC in
the text), Rajiv Jena was scanning through the
market research reports submitted by a team of
two researchers.

Internal Environment
Analysis:
MISSION: To attract & attain customers with highvalued products & services at best price and create
customers for lifetime.
VISSION: SFC was having good vision to be the most

successful & respected cooperative in India as they

were expanding their business in other states also.
OBJECTIVE: The company seeks to achieve market

leadership by delivering value to customers &

providing high quality dairy products

CASE ANALYSIS:
THE ORGANIZATION AND ITS OPERATIONS:
1. SFC operated in two disticts of orissa: Ganjam
and Gajapati.
2. It was formed by merger of two milk unionsGanjam Milk Union and Gajapati Milk Union.
3. SFC represented the second tier of Anand
Pattern Diary Cooperative Structure in Orissa.
4. Indo Swiss Project Orissa was commissioned in
1990 to make the diary unions more effective.

THE ACTIVITIES OF SFC:

The main activities of SFC include procurement,
processing/manufacturing and more recent emphasis on
marketing.
Firstly SFC started marketing liquid milk under the brand

name SFC.
SFC supplied surplus milk to OMFED which marketed it

under their own brand name.

SFC paid 5 paisa per packet of the liquid milk to the OMFED

for using the brand name.

PROBLEMS AND ISSUES:

Retailers of SFC selling around 30% of milk in

Berhampur went on strike.

These retailers were not ready to sell OMFED
brand of milk until and unless their demands
were met.
Their demands included appointment of new
retailers with their consent , increment in the
commission structure and establishment of
retailers union office inside the premises of SFC.
The failure of strike made retailers to approach
the private diaries and sell their milk.

 Entry of other players into the Berhampur

milk market like: Prithwiraj Dairy, Vijaya Dairy

and Visakha Dairy.
SFC reformulated its policy of retailers
selection to end the monopoly of agitated
retailers.
SFC started increasing number of retail points
which increased the competition among the
retailers in same locality.
Complaints from consumers about selling
above the maximum retail price in case of
higher demand.

COURSE ORIENTATION:
PRODUCT MIX:
1. The Union produced two kinds of milk as specified by
OMFED: toned milk and whole cow milk.
2. The revenue from liquid milk was Rs. 50 million per annum
and from other products like paneer, buttermilk, plain curd and
sweet curd was Rs. 34 million per annum.
3. The marketing department finds the daily demand and by
coordinating with the processing department they were able to
maintain balance between demand and supply.
4.
SFC also marketed milk and agro products such as sweet curd,
chhenapod, fruit juices, turmeric and horticultural products.

 PLACE MIX:
1. SFCs market is mainly concentrated in Ganjam and
Gajapati.
2. The projected market demand for milk stands around 78000
litres per day.
3. In initial years SFC targeted only notified area councils and
some towns like Berhampur, Chhatrapur, Bhanjanagar,
Aska, Paralakhemundi.
4. Sfc went out of its market domain and entered the
neighboring state. Eg: Srikakulam District of Andhra
Pradesh. Great achievement for Jena, Marketing Manager.
5. SFC had maximum sale of milk in Brhampur about 50000
litres per day that accounted for 68% of total market
demand.

 PRICE MIX:

OMFED was the apex organization in deciding the pricing

and quality of the milk which had left little scope for the
unions to decide the above parameters.
PROMOTION MIX:

Jumpstart in Marketing Activities

1.

2.

SFC lost its market share to its competitors so Jena tried

to understand the situation by going through the report
of market research.
Jena had dual challenge before him in form of low
consumption rate of packed milk and new emerging
local players.

OMFED milk marketed by SFC was preferred over the

loose milk for making tea
whereas loose milk was preferred for drinking purpose.
4. Loose milk consumers were sensitive towards pricing
because they prefer milk at lower prices than that of SFC.
5. Launch of 200ml pouch by SFC to target all types of
customer preferring costlier milk as well as consuming
less than 500ml helped them in earning huge financial
benefits.
6. Polythene sachets were used in order to pack 200ml
milk instead of bottles which made the product more
economical and affordable to the consumers.
3.

 SFC could provide better services like frequent and timely

delivery, easy replacement policy and credit facility in order

to compete with other players.
Entry into Rural Market:
SFC could search new markets to sell its milk as most of the
consumers were residing in the rural and semi urban areas.
2. SFC thought they can do well in other states and districts
because the packed milk was not sold in smaller packs as
such as 200ml pack.
1.

Appointment of small distributors:

1.
Jena planned to go for small distributors who could
distribute milk in their nearby densely populated villages
within a radius of 5 km.

2. Provide regular supply of milk.

3. Awareness events such as local fairs and
festivals, haat, road shows etc were used to
make consumer more aware about milk
and milk products.
4. Jena was interested to place
advertisements in local newspapers and
use radio.
. New Product Development:

Consumers found various usages of milk such as

drinking, preparing tea, making curd. So Jena extended its
products range by including double toned milk to its
existing range of toned milk and CRCM.

 Home Delivery: Mr. Jena started home

delivery facility and provided credit facility to

the retailers.

Products of SFC under brand

OMFED

How Processing and Packing is done

Demand of Milk in
Ganjam
YEAR

2000-01
2001-02
2002-03
2003-04
2004-05

MILK DEMANDED IN
LTRS
68968
71069
73237
75475
77786

SOURCE:STUDY DONE ON SFC BY DEPTT. OF BUSINESS

ADMISTRATION, ABC UNIVERSITY , 1999

CONCLUSION:
Sunshine food cooperative was very successful in procurement,

processing and marketing Dairy products.

SFC was able to establish its business with the technical and
organisational assistance from OMFED and financial support
from ISPO.
SFC faced many problems like rejection from OMFED,
Retailers strike and stiff competition from new entrants but they
tackled all the situation very well and were able to maintain their
share in market.
SFC used properly marketing mix strategies according to the
situations which was main reason for the success of the company.

 So what do you think whether the decision

made by SFC in choosing the solution to

problems and best alternatives was
appropriate or whether he could have
handeled this situation more efficiently?
THANK YOU!!!
ANY QUERIES???

PEER RATING
Umain Zahoor: 10 out 10
Navjot Kaur : 7 out of 10
Abhinav Mahajan : 10 out of 10