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    Case Study Challenge: Season - 1

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    Ankit Chauhan
    1. The document discusses strategies for a beverage company to maximize revenue given shifts to at-home consumption during the pandemic. 2. It recommends focusing on large at-home packs and acquiring local brands that have high market share to expand outlets, as consumers prefer trusted local options. 3. To counter competition, it suggests prioritizing bulk water production and promotion through media given high water consumption and shift to at-home. Distribution should also be widened, and competitors acquired or out-activated where they are popular.

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    Case Study Challenge: Season - 1

    Uploaded by

    Ankit Chauhan
    89 views3 pages
    1. The document discusses strategies for a beverage company to maximize revenue given shifts to at-home consumption during the pandemic. 2. It recommends focusing on large at-home packs and acquiring local brands that have high market share to expand outlets, as consumers prefer trusted local options. 3. To counter competition, it suggests prioritizing bulk water production and promotion through media given high water consumption and shift to at-home. Distribution should also be widened, and competitors acquired or out-activated where they are popular.

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    Case Study HCCB

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    1. The document discusses strategies for a beverage company to maximize revenue given shifts to at-home consumption during the pandemic. 2. It recommends focusing on large at-home packs and acquiring local brands that have high market share to expand outlets, as consumers prefer trusted local options. 3. To counter competition, it suggests prioritizing bulk water production and promotion through media given high water consumption and shift to at-home. Distribution should also be widened, and competitors acquired or out-activated where they are popular.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    89 views3 pages

    Case Study Challenge: Season - 1

    Uploaded by

    Ankit Chauhan
    1. The document discusses strategies for a beverage company to maximize revenue given shifts to at-home consumption during the pandemic. 2. It recommends focusing on large at-home packs and acquiring local brands that have high market share to expand outlets, as consumers prefer trusted local options. 3. To counter competition, it suggests prioritizing bulk water production and promotion through media given high water consumption and shift to at-home. Distribution should also be widened, and competitors acquired or out-activated where they are popular.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 3

    Case Study Challenge

    SEASON -1

    Prepared by:
    1. Qualitative inputs on the kind of packs to be focused on and in which segment?

    Question is where to focus Away from Home or At Home?


    1. Packs are also segmented similarly with the immediate consumption (IC packs) - all the small SKUs; On the Go (Mobile Packs) and at
    Home (the large packs).
    2. From table one we can infer that due to the Pandemic the consumers have shifted towards AT HOME OCCASIONS: Eating a Meal is at
    home, Watching TV is at home, Fun with Family is at home, and work is also from home now due to the Pandemic.
    3. Even though the company was getting 70% of its business from Away from home, they should focus more towards AT HOME
    SEGMENTS now.
    4. Pack segments that are closer to At Home occasions are the LARGE PACKS (AT HOME).
    5. Hence the Company should focus more on large package segments which cater more towards AT HOME occasions.

    2. How to expand and acquire maximum business impact outlets, given the shifting nature of sales point and consumption?

    1. By looking at Table 1 & 2 we can see that consumers are moving towards Grocery and Convenience that can be inferred as
    safety and convenience, regardless of where they are situated.
    2. To expand and Acquire the max outlets would mean to max avail the product to everyone.
    3. "This can be achieved by acquiring local markets, since acquisition of local brands like Bovonto, Jayanti Cola, Soyso,
    Runner & Kashmira will bring 24% market share"
    4. This will bring in more revenue since from a shift in consumption of consumer because these local brands are well known
    and trustworthy, which provide a safety complex to the buyer.

    3. Study competition activities and recommend strategies to counter them

    1. HBL has distribution in 53% of India’s districts so to it will be advised to focus more on distribution strategies in order to widen their horizon
    2. In areas where local brands are more popular, HBL can either increase activation rate of their products or acquire their competitors, which
    would not cost.
    3. Since India only has a per capita consumption of approx. 70 bottles per annum, HBL should prioritize bulk water bottle production as water
    consumption is very high compared to beverages.
    4. HBL should start promoting it’s brand through media and telecommunication as majority of the population is drifting towards at home
    scenarios.
    4. What is the best way to use the available activation and acquisition budget to maximize the revenue?
    5. This would include quantitative inputs on which segments to focus on and how much of the budget?

    Total Industry is of Market share Revenue Activation cost Acquisition budget


    Rs 28000 crore (%) In Crore (2%) in crore (3%) in crore
    HCCB 0.52 14560 291.2 436.8
    PCL 0.2 5600 112 168
     To increase activation and acquisition budget we will need to spend on outlets, so to maximize the revenue
    our return on investment in acquisition and sales should be very high
     For that out of all the 3 consumption point we will only take Grocery and Convenience since E&D has seen
    One time costdecrease
    of in demand
    HCL because of COVID
    Industry coverage in HCL Coverage We will invest Cost
    for of all outlet Yearly
    forrevenue generated
    Consumption point 
    acquisition n ** Averageboth
    in Rural and Urban
    Sales/out Grocery but only in Rural Convenience, this is because
    ROI Urban
    other 0.28lakh 7840 in lakh
    156.8 235.2
    in lakh sales has only seen 10%
    let/mth* in lakhsales acquisition
    increase and its in crore
    acquisition cost from
    is HIGHallso
    outlets
    returninon
    crore
    investment will be low
    Grocery Urban 35 16 0.05 0.02 950 12240 12.8
    Grocery  Rural 30 5 0.01 0.005 250 2100 8.4
    Convenience Rural 0.2 0.1 0.2 0.15 20 540 27

    To find out how many outlets the company should acquire we use the following method:
    • To get the maximum revenue from the acquisition we will use inequalities.
    • Lets say Number of outlets to be acquired Grocery Urban, Grocery Rural and Convenience Rural are x,y,z respectively
    Then the following constraints are applied:
    x<=1900000 y<=2500000 z<=10000
    Equation to maximize will be : 5000x + 1000y + 20000z = 4368000000
    Solving this equation with the given constraints we will get
    x= 333600 y= 2500000 z= 10000
    So we will acquire 333600 of the Urban Grocery outlets for Rs 166.8 crore (will give us 55.6% of the industry coverage), 2500000 of the Rural Grocery outlets for Rs 250 crore (will give us 100% of
    the industry coverage) & 10000 of the Rural Convenience outlets for Rs 20 crore(will give us 100% of the industry coverage) to get the maximum out of the acquisition budget (Rs 436.8 Crore)

    Budget Rs 219.2 crore


    Sales/Consumption Cost Min Threshold for Sales Total Cost of Activation
    6. Recommend strategies to enhance the impact of activation budget
    point in lakhs activation in lakhs in crease Outlets in crore through innovative activation ideas
    Grocery Urban 0.005 0.005 15% 1933600 96.68
    Grocery  Rural 0.001 0.001 30% 3000000 30 • Guerrilla marketing strategy can be used near the outlets to attract customers
    Convenience Rural 0.02 0.1 20% 20000 4 • Establish an in-store brand experience which solves a problem using technology.
    For total activation of all the outlets we will be require Rs 130.68 crore, which is less than half of
    • Take visitors on a tour of the manufacturing process.
    the assigned budget (Rs 219.2 crore), hence the remaining budget can be used to anywhere.
    • Rejoice them with a fun activity and then incentive them with freebies.

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