SHRI RAM COLLEGE OF COMMERCE

CASE 180
CRISIS CONSULTING EDITION
 ESTIMATION OF COSTS AND REVENUE
ASSUMPTIONS UNIT ECONOMICS (avg order value Rs. 200)
The name of company is XYZ ltd. PROFIT MARGIN
40
XYZ is an already established name in Madhya Pradesh.
XYZ has good amount of capital to invest due to a strong offline presence. RAW MATERIAL
70
XYZ has a well-spread network across the state due to the existing operations OTHER EXPENSES
8

REVENUE STREAMS (D2C) COMMISSIONS AND FEES

15

FRANCHISE MODEL XYZ ltd. will open it's own retail chain on franchise model. Due to
known brand name the existing retailers network will not get TRANSPORT AND PACKAGING COST
12
disrupted as it already has a lengthy history of proven sales The
company will provide home delivery service as well like a kirana
store. CAC
55

SUBSCRIPTION MODEL Customers will be provided with a monthly subscription model.

DRIVERS OF PROFITABILITY Economies of scale
They can get milk products delivered to their doorstep on a daily
Pre Payment Post payment basis according to their requirement. Initially every customer will CAC will be a heavy investment only in the
get an offer of free Milk, Curd &Paneer for 4 days. After the initial initial stages.
13% (i.e 4
days free) 0%
offer the customers will be divided in Pre and Post payment.
Discount Discount COST
MAXIMISE REVENUES
CUSTOMER EXPERIENCE
E-COMMERCE D2C The company will start listing on e-commerce platforms like XYZ Ltd provides customers with dairy
Running ads on social media
PLATFORMS Zepto, Blinkit, Swiggy instamart, Jiomart and Bigbasket. platforms, youtube and google, products within 24-36 hours of milking due to
Providing offers in intervals and which the cost of storage is eliminated and
on special occasions. the customers receive fresh products which
DELIVERY AND TRANSPORTATION also helps in increasing customer satisfaction.
20% AFTER SALES SERVICES
25%
OTHER EXPENSES
SUBSCRIPTION 20%
35%
FRANCHISE ESTIMATED COSTS ESTIMATED REVENUE OF EACH MONTH
45%

E-COMMERECE AND APP TRANSPORTATION 10 Average family size 33,00,000 / 6 = 5,50,000

15%
ADVERTISMENTS DISCOUNTS AND OFFERS
AFTER SALES SERVICE 12.5 Market capitalised 5,50,000 * 30% = 165,000
60% 20% E-COMMERCE AND APPS 7.5 Average order value 165,000 * 200 = 3.3 CR
CAC 20
Daily revenue 3.3 CR
E-COMMERCE PLATFORMS TOTAL (in Rs. Cr) 50
20% CAC CAC
40% REVENUE 1 MONTH Rs. 99 CRORES
REVENUE COSTS AND EXPENSES
1
 TECHNOLOGY
Our products provide best of services, with accordance to latest technology and good supply chain.

E-COMMERCE PLATFORMS
Develop an e-commerce platform
that allows customers to order
dairy products online, track their
orders, and receive notifications
about delivery. This can be a great
way to increase revenue by
providing customers with an easy
and convenient way to purchase
products directly from the
company.
CUSTOMER DATA ANALYSIS
Invest in technology that can
analyze customer data to better
understand their preferences
and behavior. This can help the
company create targeted
marketing campaigns and
personalized product
recommendations that increase
customer satisfaction and
loyalty. Apps like Google
analytics, hubspot.
QUALITY CONTROL AND TRACEABILITY
Invest in technology that can
ensure product quality and
traceability, such as RFID tags,
barcodes, and blockchain. This
can help the company maintain
high standards of quality and
safety, which can enhance the
customer experience and
increase trust in the brand.
MOBILE APP
Develop a mobile app that allows
customers to order products, track
their orders, and receive
notifications about promotions
and new products. This can
enhance the customer experience
by providing a seamless and
personalized experience that is
available 24/7.

KEEP TRACK OF
YOUR ORDERS
AND COSTOMISE
THEM ACCORDING
TO YOUR NEEDS

TRACK
YOUR
DAILY AS
WELL AS
MONTHLY
EXPENSES

SET BREAKS IN
YOUR
SUBSCRIPTION
WHILE GOING
ON HOLIDAYS AFTER
SALES
SERVICE
AND
FEEDBACK

2
SUPPLY CHAIN AND MARKETING
XYZ ltd. will do partnership the transporters to have an authority over them and have control on supply chain.
FORECAST
DEMAND
Use historical data, market
trends, and other factors to
accurately forecast
demand. This can help you
plan your production
schedule to meet
customer demand.
SUPPLY CHAIN (D2C)
STRENGTHEN SUPPLIER
RELATIONSHIP
Work closely with your suppliers to ensure
that you get the best prices for raw materials,
ingredients and other inputs, and that they
can deliver them to you in a timely and
reliable manner. We are ensuring this by
giving extra margin to the suppliers in order
to stand out of our competitors.
PLATFORMS TO BUY XYZ'S
PRODUCTS
Retail store (D2C)
OPTIMIZE MONITOR
TRANSPORTATION PERFORMANCE
Previous retailers (B2B)
Website (D2C)
Use data analytics to optimize your delivery Use key performance indicators Mobile App (D2C)
routes and schedules, and to find the most (KPIs) to track your supply chain
cost-effective transportation methods. performance and identify areas
Keeping track of truck and tanker routes, as for improvement. Examples of
well as capabilities for viewing, monitoring Cash to cash cycle, customer
and payment based on route or distance. order cycle time, perfect order.

Other Retail stores

100%

MARKETING DIFFERENTIATION Other retail stores

20%

Majority of Milk companies go for onlione platforms for XYZ ltd franchise
Hyper local marketing OTHERS D2C which restricts then from growing in Tier2 and 3
40%
Website
Hyperlocal marketing is the process of targeting prospective cities 10%
customers in a highly specific, geographically restricted area
XYZ ltd. will open their retail chain which will help the
XYZ'S USP people in tier2 and 3 cities to adopt fast to our
Retail stores positioning subscription model on cash.
Mobile app
XYZ ltd. will position it's retail stores nearest to the existing 30%

kirana store locations. Since the existing customer base Majority of milk companies use cold storage for storing
OTHERS their milk products in between. Since, milk products are
already is familiar with the brand, they will buy it from or
extremely perishable, till the time they reach end
retail stores. WHY OTHER RETAIL STORES?
customers their shelf life is almost about to end.
Currently the retail distribution
Running ads on social media platforms, youtube, XYZ Ltd provides customers with dairy products within
XYZ'S USP channel accounts for around 60%
24-36 hours of milking due to which the cost of storage
google SEO of the dairy products industry.
is eliminated and the customers receive fresh products
This will increase social media presence and make the brand which also helps in increasing customer satisfaction.
own to new customers. Further our subscription model will
be affordable to almost everyone.

3
 Meet Our Team

AGRIM ARORA NIKITA GARG NIHARIKA BINDAL GAURA KUKREJA

8929287997 8076926106 9999056640 99711 48267

agrim111arora@g Nikitagarg8146@ bindal.niharika1 gauravkukreja11

mail.com gmail.com 9@gmail.com @gmail.com