Prabhat Dairy

28 Pages·2017·0.21 MB·English

GGFBM
Prabhat Dairy
GGFBM Consultants:
Anat Cohen, Iddo Diamant, Oded Harel and Roey Yamin
Agenda
• Introduction
• Analysis
• Recommendation
• Implementation
• Financial implications
• Risk Mitigation
• Conclusion
Introduction
Introduction Analysis Recommendation Execution Risks
Company’s Strategic Needs
CURRENT REVENUE
STREAM
B2C
Growth in Profit
30%
revenues decreased
B2B
in 6%
70%
REQUIRED REVENUE STREAM
Need for improving
the operating
B2C B2B
processes’ efficiency
and costs
Introduction Analysis Recommendation Execution Risks
Key Issues for the Strategic Plan
Supply
Costumers
Chain
Products
Strategic plan for the next 3 years
Analysis
Introduction Analysis Recommendation Execution Risks
Costumer
B2B vs. B2C
B2B B2C
Strengths Easier distribution Retail is growing
High growth High demand
A place to grow
Stated company’s goal
Weaknesses Smaller profits Tough competition
High inventory times Weak in marketing
Need for change in distribution
Prabhat need B2C’s strengths and can handle its weaknesses
Introduction Analysis Recommendation Execution Risks
Costumer
B2C
s
l
i
a
t
e
Rual and urban
R Nearly double by 2019
(948 billion $)
Tier 1-3
Mainly urban
Local brands
80-85% domestic
(cooperatives)
brands
Low margins
High margins
High costumer prices
Private label push
sensitivity
High customer price
sensitivity High level of bad debt K
i
r
a
n
a
Retails have more advantages than Kirana
Introduction Analysis Recommendation Execution Risks
Costumer
Geographical Exapnsion
Tier 1 Tier 2-3
Strengths Large populations Less competition
Lower distribution prices No head-to-head with
Prahat has lowest prices cooperatives
First-mover advantages
Weaknesses A lot of competitors Emerging competition (Amul)
Tier 1’s strengths and weaknesses emerge more efficiently
Introduction Analysis Recommendation Execution Risks
Products
Products Analysis
Product Currently used Gross margin Competition Others
Milk + Strong Highest market size
6-7% (6.3%)
Ghee + N/A Strong Lowest CAGR, homemade
preffered
Yogurt + Mainly Significant usage growth
international (32% CAGR)
Flavoured milk - 30-35% Nacsent (28% CAGR)
Powder + condenscent + Very strong for B2B
milk
Prabhat needs to decide which products to maintain and which to drop