Planet Milk: Choosing a Route to Market

Planet Milk produced and distributed A2 milk in Bhubaneswar, the capital city of the state of Orissa, in India. Despite the best efforts of its founder, Planet Milk had remained unprofitable since the COVID-19 pandemic struck in March 2020. In January 2022, the founder considered three broad alternatives to revive his milk business. The first was to change the milk’s packaging from glass bottles to Tetra Pak cartons. This change in packaging would increase the milk’s shelf life, allow wider customer reach, and improve revenues. The second alternative was to introduce an online order management option for consumers, which would increase the visibility of demand and thereby increase the operational efficiency of the business, reduce wastage and logistics costs, and increase profits. However, these options also required significant capital investments that would potentially not be recouped if the desired increase in sales did not occur. The third option was to target institutional buyers or retail channel partners, which would potentially increase sales but also decrease margins and increase credit. The founder had three months to implement a revival plan; if it proved unsuccessful, he could sell the business.

This case can be used in post-graduate management programs and in training programs for corporate executives to teach niche marketing strategies and routes to market using alternative distribution models. The case also explores the idea of scenario planning and its usefulness in decision-making under uncertainty. The case also highlights the financial analysis of different scenarios and the use of qualitative data in distribution channel decision-making under uncertain market conditions. By working through the case and assignment questions, students will have the opportunity to do the following:<ul><li>Understand how value is created for customers and appropriated by the marketer.</li><li>Perform financial analysis of alternative niche marketing strategies.</li><li>Evaluate the merits of alternative routes to market using different distribution channel options.</li><li>Understand management decision-making in the context of an uncertain business environment.</li></ul>

• niche marketing
• business strategy
• scenario planning
• route to market
• profitability