Revamp to a professionally run confectionery group. Marketing strategy:To study the world wide competitor edge and complete market variation and trouble shoot the crises 100%,Anticipate for product launching & Innovation. Distribution methods:Establish new retail outlet at prime locations with good logistic support.Introduce for festival coupon system to cover all zonal regions. Cost management:Convert wastage as cash crop, especially dairy unit- manure,sweets & savories - maintain shelf life & durability tracking. customer complaint :Fulfill the customer quires & provide right solutions. Regular Followup:Introduce PDCA golden rules and need to apply this concept for day- to-day business activities(Plan, Do, check,Act)
The best way to deal with the competition is to deal it `Arafat” way. Pendharkar should support their Dairy business by either opening a new business much bigger then this or acquisitions of any famous Company of same field. Later one will be bit difficult to go with; Pendharkars should opt for new business. Pendharkar should start Construction or Real State business. This will give Pendarkars , much needed publicity, credibility & recognition of a Growing Company. This will take Pendharkars in a totally Different & upper segment of business Class then Delhiwalla
The promoters must reduce concentration in small retail outlets, go for expansion in sweets business with possibly a public issue, balance their Debt-Equity mix to reduce cost of funds and for tax planning and reduce risk exposure of own self generated funds- THINK BIG and willing to share success with retail investors across the country, enter rural market, go for cost cutting, think of merger of units, go for forward/backward inegration exercise, increase margins in value chain etc- in short adapt to change and go for professional management as well
Spin Off The Dairy Business! Sell it to Milky Way with a buy back arrangement. Keep them engaged in this Dairy Business while you figure out the best step forward with your sweets business. At least your competitor is now tackling your problems instead of you!
Marketing strategy: Adopt an aggressive strategy my endorsing known National celebrity or regional celebrities, come up with jingles or slogan that has a mass appeal Distibution Channel: Work on distribution channel as the existing one is good they can improvise on it Decrease profit margin: can compromise a little on profit margin of sweets to counter new labels Acquisition: Can look for labels not doing good and can acquire their units in different parts of the country. Introduce regional flavours Can come up with smaller packets to increase sales in villages or even cities for eg: shampoos come in smaller sache for lower price. As Foreigners are health concious can come up with lower Fat, low sugar funda for exports and also for local sales within India.
