Monday , 10 December 2018

Possible measures for turnaround

l GDs objective has to be to serve the customer better as per customer’s convenience. About 2/3rd of sales are not from the rickety booths ( which need immediate coat of paint). The dairy needs to strengthen Booth base and use them to improve marketing. But booths seem to be working in isolation in unhygienic conditions for just two hours in the morning and two hours in the evening!

l Despite so many booths, more than 30,000 litresof milk per day are sold through 700 grocery shops in various parts of Goa. But in this kind of arrangement, shop keeper will sell brand of milk which customer wants. Unless there is demand pull, the shopkeepers will not sell more of the dairy milk.

l Customers these days prefer to go to a shop where they get all their needs apart from milk. Ideally GD could orient itself to offer other consumables to customers through their outlets which could become more economically viable and sustainable.

l Go for double toned homogenous milk with higher SNF (SMP)giving better thickness at lower price for institutional segment which can increase the sales in a big way

l Widen and deepen the distribution network through own members and societies in rural areas. Set up new booths for them as in urban areas and offer other products too

l By selling non milk based third party products from our own booths, we will be able to increase our sales substantially and earn the distribution and retail profit from those products. We should be able to sell more than Rs100 crores of third party products with 10 per cent margin to us and thereby also encouraging the booth operators to work full time. Customers will come to the booths during day long operating hours and for other products offered. They will also buy GD milk which is the only milk stocked in the booths. This will result in increased GD milk sales as well as total sales with good profit margin and money to the entire distribution network

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