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Planet Milk: Choosing a Route to Market
內容大綱
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.