Sarvodaya Samiti is an NGO that promotes livelihoods for tribal people in Odisha. It faces a dilemma about its honey business regarding procurement, processing, packaging, promotion and increasing sales. It considers alternatives like joining a consortium, improving on its own, or partnering with other organizations. After analyzing costs and benefits, maintaining its own brand while partnering with KVIC for greater market access is determined to be the best option to help farmers and overcome challenges like high taxes.

1. Sarvodaya SAMITI CASE STUDY
Under The Guidance of
Prof. Nilamadhab Mohanty
Submitted By
Sahinsaha Ali Khan
MBA-RM
Regd No- UR14041
Xavier Institute of Management
Xavier University, Bhubaneswar

2. Sarvodaya Samiti Case Study
Case Background: - Sarvodaya samiti is non-profit, non-governmental organization
based in koraput district of Odisha. It involves in promoting livelihoods of tribal people by
promoting activities like sustainable agricultural, development of khadi and village industries,
child and women welfare, building of educational complex for schedule tribe girls, consumer
welfare, watershed programmes and rural marketing. The organization is the only
organization who is promoting rural marketing in that area.
Now Sarvodaya samiti caught in a dilemma in regard to its Honey business.
Supply Chain of Sarvodaya Samiti:-
Honey Market: - The honey production in local market is negligible because only 5% of
farmers were involved in honey cultivation and total revenue constitutes 2% revenue of the
district. The honey market in Odisha basically in reference to the rural Odisha is not fully
explored thus this market has a great potential in the future. Major Player in odisha in this
market is Dabur, And Himani Sona Chandi honey apart from Sarvodya Samiti. Growth of
honey market can clearly identified from the Table 1.
Sarvodaya Samiti’s Honey a quick overview: - As the organization is based in
Koraput, which is surrounded by forest According to expert it has a great potential for in
honey market. Four different factors decide the importance of honey for samiti such as ease
of procurement, availability of processing facility, marketing experience and financial
support. In addition to that samiti has also got the Agmark certification which increases the
Brand reliability of samiti honey.
Procurement, Processing & Marketing of Sarvodaya Samiti Honey:- Samiti use to
procure honey not only from Odisha but also from outside states like West Bengal, Bihar,
Chhattisgarh etc. After procuring honey from this place it process it in its Bhubaneswar plant
and packaging complete at that place. Samiti packs the honey in Glass bottle and the bottle
was labelled with a paper in which Sarvodaya samiti written on it along with Apirary in bold
letter as well. Apart from this two the name and address of the organization written in small
letter.
For the promotion Sarvodaya Samiti adopts the following measures
 It participate in melas like Gramashree organised by CAPART in Berhampur.
Farmer collecting
Honey
Processing and Packaging &
Marketing
Consumer Store
Retail Outlet
KVIC Distribution Network

3.  It also participated in Baliyatra held in cuttack, which is one of the biggest mela of
India.
 Apart from this Sarvodaya Samiti participated in all the district melas. As a part of its
promotion strategy.
Problem In packaging and Promotion Strategy of Samiti:-
These following are some of the problem that samiti follows
1. Proper Packaging is not there
2. No branding is done
3. Scope of promotion is very narrow. It should focus more than mela for its promotion
To overcome these problems Samiti can adopt the following strategy
 It should create a separate brand name to promote its honey. It is very important to
keep in mind that the brand name should short and can easily pronounce. In term of
packaging samiti should come with plastic package because it is difficult to handle
glass bottle in both urban specifically in rural areas.
 It should broaden its horizon in term of promotion. Apart from promoting in melas it
should take other majors of promotion like POP display, Wall painting, and also
promoting it in regional TV channel. The positioning should be different for both
rural and urban customer.
 In the case it was given that rural honey market was captured by national brand
because of its brand awareness and other reason for it is unavailability of small honey
in small quantities in rural market. To gain trust of rural consumer samiti should come
up with small SKU’s at least to gain confidence of rural consumer.
 Awareness is a major problem in case of samiti’s honey.
Cost Analysis of Sarvodaya Samiti:-
Procurement place Price Transportation Cost
West Bengal 40/Kg 14000+8000=22000(Per 10 tonnes)
Bihar 40/Kg 14000+8000=22000(Per 10 tonnes)
Chhattisgarh 40/Kg 14000+8000=22000(Per 10 tonnes)
Koraput and other Part 40/Kg Rs 8000
Puri and Sakhigopal 60/Kg Rs 2000-3000
Issues Before Sarvodaya Samiti:-
 Some time they were not able to meet the demand of honey.
 It doesn’t have the financial capacity to increase its processing facility.
 It aims to increase its sales volume by entering into new and existing market.

4.  High impose tax by government of Odisha. Which compel samiti to increase its price.
 He is in dilemma whether it’s should join the consortium with ORMAS and KVIC.
Cost and Benefit of Different Alternatives:-
Alternative 1 (Sarvodaya samiti Being Part of Consortium):-
Costs:-
 It will lose its brand name as ORMAS is going to promote its product in its own brand
name.
 If it tries to sell honey through his own brand other than ORMAS then it will face
direct competition from ORMAS.
 It might not get sufficient time to process its own product.
 It can’t compete with ORMAS because ORMAS has more financial resource than
Sarvodaya Samiti.
Benefits:-
 Samiti will able to increase its production capacity.
 Better access to financial resources
 Technological Advantage.
 Access to better promotion channel
Alternative 2:-
Costs:-
 Cant increase its production capacity
 High investment will be needed for getting agmark certification
Benefits:-
 Autonomy in all aspect
Alternative 3:-
Costs:-
 Imposition of 12% tax by government
 It has to increase the price because of this tax
 Don’t have better access to finance and marketing
 Cant scale up
Benefit:-
 Able to retain its own brand
 Greater access to market through the channel of KVIC

5.  Able to remote sustainable livelihoods for the farmer.
 Better access to UNDP fund
Alternative 4:-
Costs:-
 Kill its own brand name
 Doesn’t have great value addition to its existing system
Benefit:-
 Better market access
Alternative 5:-
Costs:-
 It has to kill its own brand
 Killing its brand will leads to affect the sales of other product of Semite
Benefit:-
 Market linkage
 Support from organization like OMFED which is very known to customers
Decision:-
After seen cost and benefit of all the alternative alternative 2 will be the best alternative
where it will not take part in consortium but keep its relation with KVIC because of the
following reason
 It will able maintain its brand name
 It will able to achieve its objective to help the farmer
 Take advantage of greater market access of KVIC
 Access to the fund of UNDP
 It can overcome the problem of pricing by periodic increase in price because in the
case it was mention that if it increases its price from 135-160 still it will remain less
than that of its competitor. The main point here to keep in mind while increase in
price is periodic increase in price because if we increase price in a big amount it will
lead to a bad impression in the mind of customer.