Blog Highlight – Explore the case study of Country Delight, uncovering their strategic innovations and key factors driving growth in the dairy industry.
A disruptive startup with an innovative business model.
Overview
Life was unpredictable half a century back. Imagine a cow in the backyard supplying fresh, unadulterated milk. Life’s chill. The owner of the cow can ensure the authenticity of the product, and eliminate concerns as desired.
But today, as spoken by the owners of the emergent dairy service brand in the market, milk consumed by people undergoes heavy processes of reconstitution or combination with milk powder.
The milk travels long before reaching the necessary homes, making it susceptible to risks of adulteration.
How Did It Become a 600 Cr Brand?
The venture’s retentive nature appealed to the duo well enough to get into the milk business that had a long gestation period.
But is it right to put all the capital in a high-risk zone?
With a limited capital pool, obviously certainty, predictability and built-in safety of the business would make more sense.
Country Delight
No longer a milk brand, a ‘natural foods’ brand.
Upward Trajectory
Finances
• Revenue Growth: 1.6X YoY to INR 542.6 Cr
• Net Loss Increase: 6.5X YoY to INR 186.4 Cr
• Reason for Loss: Sharp rise in expenses
Mission
• Core: Superior quality products
• Goals: Value-addition, Customer Loyalty
Market Challenge
• Balancing financial sustainability and growth.
Future
• Customer Satisfaction:
• Building Loyalty
• Impact of Presence
“The dairy tech startup ain’t far from achieving the milestone of profitability”
The fascination centered around the traditional system of a generic “milkman system”, as it was intriguing to the co-founder, Gade. Started by him and Nitin Kaushal in collaboration, this brand was sure to demand notice and how.
Let’s look further…
Country Delight’s Inception
Their concept centered around a fully functional business model that aimed to own the full supply chain, from the farm to the consumer. Cattle are viewed as a non-depreciating asset, as they can only multiply with time.
Would you have the same opinion for a car where the value only keeps depreciating. This meant their business could potentially grow keeping aside external infusion of capital.
The brand started this journey without expecting an overwhelming response. It was a bootstrapped venture that took time to simply lay the foundation, over 5 to 6 years at that.
When they started off, they possessed 100 cattle which were on the verge of being whitewashed. Another issue was how the milk production dipped with an unpredictable milk cycle. 70% of bootstrapped capital was already burning. The initial years went in figuring out milk procurement, focusing on customer acquisition, and fixing last-mile delivery.
Focus was essentially laid on critical components like establishing a supply chain that is reliable with real-time visibility, building technology for digitally monitoring quality at the very source, and forming a distribution network that can operate scalably.
Guess one thing was missing in years of heat-struck struggle, a compelling brand proposition.
He asserts, “We deliver products that are fresh, natural, and minimally processed directly to your doorstep”
Country Delight’s Business Model
Dairy Delivery Easy or Not?
Country Delight operates on a subscription-based model where milk is sourced from farmers and delivered to customers.
Customers can subscribe to a specific plan of their choice, regularly or on alternate days. Milk management becomes hassle-free as customers are served by the company daily. Farmers are paid a premium for milk production and ensuring ethical practices of procurement. Without the presence of middlemen, the brand can enhance the style of working capital of farmers and pay them accordingly as early as deemed.
Working on this model, the brand claims to be serving over 3 lakh households, fulfilling over 5 million orders in a month with the help of 6000 delivery guys.
Product Chart
• Dairy Products- milk paneer, curd, ghee, buttermilk
• Sourced from local farmers
• Place orders through the Country Delight website or app.
• Products delivered timely, early in the morning.
Startup Funding and Valuation
An almost $200 million revenue is presently generated by Country Delight, with a growth rate of 5-7% month-on-month. A very clear path to profitability is anticipated in the next 8-10 months.
So welcome to the future!
The demand for seamless and personalized services is sure to reach new heights in 2024. Together in this blog, we decipher the future of delivery with the mission of bridging a gap between customers and authentic dairy produce.
Digital Marketing and Social Media
The “Live Better” digital campaign from Country Delight needs to modify the livelihood for numerous people. The campaign has run on digital platforms with over 5 million viewers. They wish for people to completely shift to farm-fresh products by highlighting the significance of healthy living standards.
The adoption of customer-focused and tech-driven strategies for supplying fresh, natural, and minimally processed food items personally to doorsteps of households is genius. It resolves the industry challenge of adulteration majorly and disrupts the milk or staples delivery business. It is great that the introduction of these initiatives consider consumer sentiments.
The brand took time to pop up in the minds of millions but now that it has, it is in full rage.
The establishment wasn’t easy but so was the associated hard work behind the scenes. Country Delight partners with celebrities and influencers, alongside food bloggers, nutritionists and chefs to be relevant, trusted and have their name embedded in the minds of many. The products of the brand have been endorsed by celebrities like Sonali Bendre and Kajol through intended collaborations from the brand.
The ad campaign featuring two unique ad films resonate with the brand’s commitment to milk quality and purity. The videos were titled ‘Black Tea’ and ‘Technology ka Kamaal’ for sticking to good old traditions and celebrating relations built around milk in India.
The in-house creative team of the brand envisaged the campaign, having been produced by Basta Filmstudy.
Technology ka Kamaal
Shows how urban consumers enjoy pure milk from their home’s comfort. The message is delivered heartily through conversations between friends discussing how technology bridges the gap between old and new times.
Black Tea
The heart-warming story is based around a young adult making black tea for the mother and childhood reminiscence. The brand’s VIP membership is promoted and viewers are encouraged to give this VIP treatment to loved ones.
Better than the Competition?
Big names in the market are that of Mother Dairy and Amul, undoubtedly.
But Country Delight remains distinguished in the market for its unwavering dedication to quality, embracing naturalness, and distinct marketing approaches.
It boils down to being quite subjective.
Amul is 76, having been started by a humble dairy farmer, now having the largest distributor network to sell their milk products all across the country. It is a renowned name known across every household in the country. It does not need to sell online, it is available across milk booths and local markets in every possible store that there is!
A study shows that 24.64% of India’s market share is for its milk products.
Country Delight ages 13, and depends on its online presence ONLY. The product pricing is slightly more expensive for its expenditure on advertisement and marketing. Also, the ease and convenience of ordering from your home and having it in your hands without delay is worth a mention.
So ask yourself this question- How would you like to purchase milk- Online or offline?
TRP
The brand stands out for delivering to homes directly and enhancing consumer living. The essence of the product philosophy is based on consumer wellness. All the products in their brand embody-
• Purity: Bypassing intermediaries
• Fresh: Exclusive supply chain ownership
• Minimally processed: Upholding Quality as closely as possible
Target Audience Chart
• Busy urban dwellers
• Health-conscious people
• Families with kids.
Marketing Campaigns and Strategies
So what does this brand do to engage and reach the desired target audience..
• Digital marketing: The brand leverages SEO or search engine optimization, email marketing, and social media to promote products and create brand awareness.
• Collaborate with Influencers: It partners with wellness and health influencers for endorsing products, and educating customers regarding the advantages of fresh dairy consumption.
• Referral programs: Customers get incentives for referring family and friends through offering credits on future orders or discounts on current ones.
• Community engagement: Active engagement with customers by sharing user-generated content, organizing giveaways and contests,
• Content marketing: Engaging and informative content involving blogs, videos, recipes for educating consumers about the significance of quality and freshness, and also talk about product versatility.
Customer Feedback
How reliable are their products in the opinions of customers?
It is always good to check for ratings, feedback, and reviews before purchasing anything and everything.
Country Delight brags about its stringent cold chain process for maintenance of the freshness and quality of products.
It is advisable to consider factors like feedback, customer reviews, available certifications, recent updates, and news concerning the brand’s reputation.
For making informed decisions regarding reliability-Few things to ask yourself before purchase…
Final Thoughts
Country Delight has placed itself as a trusted and convenient product delivery service in the country. It focuses on quality, and customer satisfaction, which allows it to gain a loyal consumer base. It will only continue to expand its reach for catering to the growing demand of dairy products amongst the classes and masses alike.
It is committed to supporting local farmers and delivering happiness to households. Country Delight will possibly achieve its vision of becoming the best, most trusted name in delivery services for dairy in the country.
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