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Tata Strategic recommended the development of product extensions and added features, entry into new markets including overseas ones, entry into new plastic products, branding strategy for the retail segment and customised products for the institutional segment.

The business plan helped the client double its sales in 4 years.

Tata Strategic reviewed the business processes and identified critical ones. Redundant processes were eliminated/ out-sourced and a new structure was framed for each functional area. Optimal staffing levels and IT systems required to improve processes were also identified.

The study enabled the client reduce operating cost by up to 15 per cent. Subsequent to this, Tata Strategic was retained by the client for a year to work on similar assignments across India.

Tata Strategic studied all elements of the cost structure except the cost of raw milk. The focus was on key elements of operational costs such as manpower, logistics and conversion. Manpower cost was studied using levers such as benchmarking, outsourcing and zero basing. Almost 30 per cent surplus manpower was identified using these levers. In logistics, the contracted rates for transport of milk from DCs to the chilling stations were re-evaluated. Inter-union milk movement was redesigned using optimisation software. A potential to reduce logistics costs by 15 per cent was identified. Savings on conversion costs were identified through levers such as process redesign and fuel change. A potential to save 5 per cent of conversion costs was identified. Savings were also identified through the rationalisation of inventories, a change in the distribution structure and improved cash management.

The study enabled the client identify and exploit ideas to reduce overall operational costs by over 20 per cent

Tata Strategic conducted a cost base analysis covering cost waterfall isolating key cost drivers. Several cost reduction levers including commercial and structural levers were applied to identify potential to reduce costs. A logistics procurement strategy was devised and implementation of recommendations (negotiations with vendors) in a few pilot locations was facilitated.

The client was able to reduce costs on secondary freight by about 18 per cent following the exercise

Tata Strategic formulated a growth plan by studying growth potential for business across various states in the country, portfolio in terms of price points and after-sales service for offerings, impact of government initiatives and policies, sales and delivery models with respect to channels, roles and responsibilities and organisation structure, and the skill sets required to support growth.

The client is currently implementing the strategy. After reviewing the report, the global CEO of the company met with Tata Strategic officials in India to seek inputs on implementation and possible hurdles that could hinder it.

Tata Strategic conducted a “voice-of-the-customer” exercise to understand deficiencies in the existing sales and distribution network. Tata Strategic suggested bifurcating the client’s unified distribution channel into two separate channels along core product lines: One for the core product and the another separate channel for other related products. The number of distributors was reduced by over 60 per cent to ensure consolidation and higher return on investment to distributors. Tata Strategic also restructured the client’s sales organisation based on a competition benchmarking exercise and revamped the compensation structure with greater emphasis on performance-based pay.

The client has implemented Tata Strategic’s recommendations and has considerably increased direct retail coverage. The new distribution strategy coupled with the new organisation structure has enabled the client arrest its fall in market share and get back on the path towards market leadership. The client has invited Tata Strategic to extend the study to other key markets as well.

Tata Strategic assisted the client in identifying attractive market segments, an appropriate product mix, and developed a retailing format and rollout plan. Tata Strategic also assisted the client to acquire a multinational retail chain at a value creating price to reduce the gestation period. The client has since set up a chain of apparel retailing stores in several Indian cities and is a key player in the Indian retail sector.

The client further retained Tata Strategic to analyze business opportunities in retailing new product categories. Tata Strategic assisted the client in identifying groceries, food and household items as attractive product opportunities for its target consumer segments and developed a retailing format and business plan.

The client presented the plan to its board which has given its approval.

Tata Strategic studied the procurement structures of the client and its competitors to understand the economics of intermediaries and other prevalent market practices. The traditional setup of having a single cooperative society per village was identified as yielding limited results. Structural changes in terms of formation of self help groups (SHGs) and multiple collection points in each village were identified. It was further identified that the competitor’s low prices coupled with micro-credit was more attractive to the farmer than the client’s offer of a high procurement price. A competitive micro-credit offering was developed for the client. The possibility of using NGOs as a means to deliver micro-credit to SHGs was also studied.Further, solutions were developed to address lacunae in day-to-day operations such as measurement of milk, its quality and bill payment mechanisms.

The client has started implementing these initiatives in some catchment areas which had become defunct. The volume of milk procured from these areas has gone up significantly.

Tata Strategic helped the client undertake a product portfolio review to weed out stagnant/ unprofitable products and remain focused on high growth/profitable segments. Tata Strategic also identified new market segments with high growth potential and helped the client evolve a long-term new product introduction strategy leveraging its core strengths. A long-term marketing and distribution strategy, along with annual budgets were also prepared for a five-year-period.

The client doubled its revenue and grew profits six-fold in the ensuing five years. The client has since retained Tata Strategic to undertake two more assignments in strategy and process improvement.