CASE STUDY

Category Planning: How Quantzig Helped A Renowned Dairy Products Manufacturer Devise A Strategic Approach to Effectively Manage the Supply Chain

Mar 8, 2018

Client: A renowned dairy products manufacturer

Area of engagement: Category planning

The global market for dairy products is typically segmented into cheese, butter, milk, cream, yogurt, ice cream, buttermilk, and lactose-free products.

Today, the global dairy products industry is witnessing promising growth due to the rise in food consumption and the growth of online and mobile shopping platforms. Consumers are also shifting toward dairy products as it is a convenient and a relatively inexpensive source of protein. Moreover, the evolving consumer trends toward clean and healthy label products are compelling businesses to offer safe, nutritious, and affordable products to the customers. As a result, organizations should take advantage of their technical capabilities to develop innovative products and ensure better production efficiency while meeting the quality standards.

However, a few factors are expected to influence the growth of the dairy products industry in the coming years. These factors include:

  • Rising environment concerns: The rising interest in reducing greenhouse gas emissions across the globe is compelling establishments to shift toward more efficient ways to produce dairy products. Moreover, according to a recent research report, it is estimated that dairy products contribute to about 3% of the greenhouse gas emissions across global with cows producing approximately 200 liters of methane every day.
  • Welfare problems: The global dairy products industry is subjected to continuous welfare problems such as impregnation and induced calving and milking to meet the production demands. This has significantly reduced the average lifespan of a dairy cow from 20-25 years to six to seven years. To counter such apprehensions, it becomes essential for establishments in the dairy products space to shift toward a more organic method of producing products while retaining its quality.

To know more about how our category planning solution helped the dairy products manufacturer, request for more information from our experts.

Many such factors are compelling firms in the dairy products space to leverage the use of category planning solutions. Category planning solutions help companies effectively develop sourcing strategies and long terms plans to manage the supply chain. These solutions also help firms maximize cost-saving opportunities and effectively reduce additional spend.

The Business Challenge

The client, a leading dairy products manufacturer with manufacturing units spread across the globe, wanted to profile the target customers and differentiate their product offerings to provide superior value to the customers. Additionally, the client wanted to understand customer buying habits in terms of cultural, personal, and social factors and the decision-making process to position their products.

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The Solution and the Business Impact

The category planning solution helped the client gain real-time insights on the opportunity analysis to drive value and increase stakeholder engagement. Additionally, the client was able to address problems about additional spend and gained up-to-date market insights in terms of the nature of players and the cost drivers. This helped them effectively identify target commodities, opportunities and, effectively enhance their ROI.

Category Planning Solution Insights

With the help of Quantzig’s category planning solution, companies across the dairy products space can understand the customer buying preferences and accordingly position their products in the market. Companies can also identify the KPI’s and adequately allocate resources to meet the business requirements.

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