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