Shimla dairy products dissertation
Shimla dairy products was a 35 year old family business changed into limited business, which makes a wide variety of cheese and other goods (including ghee, butter and processed cheese). It produces and sells about twenty nine varieties of mozzarella cheese. The company currently has two plants with a total ability of 10000 liters of milk digesting. Shimla milk had been experiencing a growth of 15-20% in sales per year as opposed to 7-8% growth to get the additional cheese companies in the market.
Certified by the federal government as a foodstuff manufacturer, Shimla is operating towards getting ISO 9002 accredited and certified with HACCP.
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Shimla sold the cheese in major Indian cities of recent Delhi, Mumbai, Chennai, Kochi, Bangalore and Hyderabad. Completely recently prolonged its operations to the metropolitan areas of Ahmedabad, Kolkata and Goa. The customer for Shimla is the hotel sector (Five-star plus the mid-low end) which has contributed for about 46% of the revenue. Other folks include eating places (20%), Stores (17%) and Pizza chains (17%). It also generates revenue through suppliers, with a couple of distributors in each metropolis.
These marketers had special rights to get the city and supplied to hotels, eating places and retail outlets. Shimla dairy products has brought regarding few operational changes, just like introducing per night shift to make sure higher quality of milk. Likewise, the testing intended for bacteria, thrush and adjusts has been improved. Compared to its competitors Shimla dairy contains a very low plant capacity and this has cause the loss of few contracts by company. Inspite of all these, Shimla had been faced with a few complications and is looking out on strategies to improve the sales.
Handful of questions, that they are considering happen to be should it check out a particular specialized niche (high or perhaps low end cheese)?, which region to concentrate on? How to market usana products better? Should the production services be broadened? How to make more manufacturer awareness? To investigate the company’s placement better, the strongest and weakest points of Shimla dairy will be analyzed. Durability and Weak point analysis (Shimla Dairy): Strengths: * High quality product/s 2. High product sales improvement 5. High development in product sales (15- 20%) * Wide selection of products * Huge emphasis given for the quality in the product Disadvantages: Limited cpu when compared to opponents.
Location of the processing plant at a very high éminence makes transport costlier. * Direct sales just to few grocery stores and bakeries * Distributors had the exclusive rights for those particular city sales. * Heavy reliance on banks pertaining to working capital * Zero percent revenue was used for marketing purpose. * Too many types, considering the grow capacity 5. Product call to mind due to problem in storage conditions or perhaps problem in flow, which added an additional cost to the company. External Environment Analysis: Mozzarella cheese Industry in INDIA
Till recently dairy products market in India was in infancy but was now ready into a development stage. About ten years ago cheese was a fairly cool product to Of india market. But with about 1 ) 2 billion young, developing population as well as the growing desire for western design foods and increasing penetration into the Indian market, Dairy products has grown swiftly in India. The branded cheese industry was approximated to be 9000 tonnes each year valued for 1 . almost eight billion. In addition , Indian dairy sector is definitely expected to double its production in the next a decade. The increase is definitely expected to reflect in the dairy products industry as well.
Also, India is the cheapest producer of milk on the globe. The market picture in India proves it to be advantageous for foreign investment in the sector. Parmesan cheese industry in India can be not extremely regulated. Even so Government was expected to bring about a policy that non authorized cheese will not be sold. Cheese was mainly used in urban areas. Competition: Your competition in parmesan cheese industry, especially the low end dairy products is brutal. Many foreign brands moved into the market. You can also find many new entrants into the industry like Amul, Britannia, Vadilal, Verka, Nandini, Dynamix and so forth
The entry of the new players and increased marketing activity was expected to grow the market. Till growth, almost all of the major players were in the process of growing their creation capabilities. These firms presented tuff competition to Shimla Dairy. To understand the market condition better, pursuing is the options and danger analysis. Opportunity and Danger analysis: Prospect: * Focus on South Of india restaurant segment as intake is higher compared to North. * May explore the pizza restaurants segment Boost the processing capacity, hence attracting more large scale customers * Dairy, which is the major raw materials, is available for lowest price.
Elevating awareness of parmesan cheese and its varieties * Elevating willingness of people to explore fresh western-style style * More and more varieties of mozzarella cheese being introduced. Threats: 5. The dairy yield every cow is usually on the lessening side 5. Fierce competition, thereby limiting the profit margins * Not any regulation by the government thereby spawning fresh entrants in low end cheese area. 5. Lack of resources for funds to increase the production capacity.