Will Country Delight Disrupt 70 yr Old Dairy Giant "Amul"?

Dear Growth Enthusiasts,

Welcome to the very first edition of Growth Matrix, your source for all things growth marketing and the ever-evolving world of business strategies!

In the kingdom of dairy, there stands a colossus, an icon, a legend – Amul. Its name echoes through the annals of time, a symphony of quality, a monument of milk. Amul has not just set the bar; it's the bar.

But in the shadows, a contender emerges with a whopping revenue of Rs. 543 crore in FY22 – "Country Delight." Born from humble beginnings, it's not here to just compete; it's here to conquer. Get ready, dear readers, for a milk war like no other, where legends will be made and the world of dairy will never be the same again!

The Rise of the Contender! 📈

It all began in the year 2015 when a bunch of Engineers and IIM Graduates decided to revolutionise the dairy industry, "bringing back the basics of milk". Recognizing the unscientific practices prevalent in milk testing, lack of innovation and the absence of a reliable home delivery system for fresh milk, "Country Delight" stepped in as a disruptor.

Will "Country Delight" Disrupt The 75-Year-Old Dairy Giant "Amul"?

While Amul undeniably holds a leadership position in the dairy industry, it's important to acknowledge that even giants have their Achilles' heels. Did Amul, perchance, place an unwavering trust in its legacy, to the point of overlooking the thunderous clamour of folks yearning for the simple pleasure of fresh milk at their doorsteps? Who would have imagined that addressing this elemental desire would propel Country Delight to a staggering revenue of Rs. 543 crore in FY22, a jaw-dropping ascent of 69.2% from the preceding fiscal year? The dairy world, it seems, is full of surprising tales.

Now, let's talk milk. Fresh, creamy and utterly irresistible - it's the star of "Country Delight's" show, accounting for a staggering 67.8% of their total operating revenue. In FY22, this flagship offering saw a spectacular 46% surge, raking in a cool Rs. 368 crore. But that's not all. The sale of groceries and other dairy products, including paneer, curd, ghee, bread and more, skyrocketed to Rs. 175 crore, marking a 2.5-fold increase. It was a dairy carnival and guess, everyone was invited!

But what was the secret sauce that enticed consumers toward Country Delight, even when it came at a steeper price of Rs. 45.5 for a 450ml serving, while Amul's 500ml counterpart stood at Rs. 28?

When you're venturing into a market bursting at the seams with brands, particularly one as formidable as Amul, whose revenue skyrockets at a double-digit pace, like an 18.5% surge in FY23 to a whopping Rs 55,055 crore, you must wield a unique weapon to rise above the cacophony. Country Delight boldly carved its niche with an audacious declaration – it aimed to be a mass premium brand. Their vision was as crystal clear as the purest milk they delivered: to bring unadulterated, minimally processed dairy products right to your doorstep within the hallowed 24-36 hours after milking. Well, purity does have its own price tag, doesn't it?

How does Country Delight work?

"Country Delight" has chosen to forgo traditional brick-and-mortar stores altogether, operating exclusively in the online realm. This bold move underscores their faith in the digital landscape to reach, engage and serve customers. The launch of their app in 2020 was another leap forward, simplifying the ordering process.

Daily milk order hassles? Not anymore!

Country Delight embraces the subscription model, allowing consumers to effortlessly receive daily milk deliveries without the hassle of repeated orders. It's a seamless blend of technology and tradition, catering to busy lives while ensuring a daily dose of freshness. All you need to do is install their app and subscribe!

Country Delight's Dairy Sherlock

Every brand boasts about the purity and quality of their milk, but not Country Delight. Instead of simply talking the talk, they walked the walk by allowing people to become milk detectives themselves. To tackle any doubts about milk quality, Country Delight included milk testing kits with their orders. This not only reassured customers but also demonstrated their unwavering dedication to transparency and accountability. It's like having your own milk detective agency at your doorstep!

Strategies that sizzled!

Country Delight is the master of dishing out healthy vibes and cooking up trust like a gourmet meal. Their social media posts? Oh, they're like delicious appetizers, tempting you with the sheer quality of their products. Have a look:

And let's talk about their campaigns - they've partnered with influencers like Gaurav Kapoor and Sanjai Mishra to convey the message of getting the purity and freshness of authentic village milk right in the city. It's a blend of nostalgia and modern convenience that's hard to resist.

And that's not all! They even teamed up with the glamorous Malaika Arora for a campaign that turned heads. This campaign, dubbed #CoconutStep, invited participants to join the fun and stand a chance to win awards. It's like a dance-off in the dairy aisle and "Country Delight" knows how to groove!

Let's dive into the Money Pit!

Well, well, it seems that the relentless spendthrifts, known as high procurement and advertising costs, decided to crash the party just when the brand started gaining traction. Procurement costs? They went full Hulk mode, smashing records with an 86.6% leap, racking up a colossal Rs. 362 crore. As for advertising and promotion expenses, they transformed from a quiet soirée into a full-blown rock concert pyrotechnics extravaganza, skyrocketing fivefold to a mind-blowing Rs. 125 crores. It's like they traded their spreadsheets for electric guitars!

All that glitters is not gold!

A year or two ago, online testimonials emerged, painting a less-than-rosy picture of Country Delight. Complaints about inconsistent product quality and deliveries at odd hours, including the infamous 4 AM drop-offs, were posted. Some customers even alleged continued deliveries after cancellations, leading to unwarranted charges.

But here's where the plot thickens - in the same period that witnessed the brand's soaring revenue in FY22, the losses skyrocketed by a mind-blowing 6.6 times. It's like watching a superhero movie where victory is swiftly followed by a curveball of challenges, leaving you at the edge of your seat, popcorn in hand!

As we conclude our exploration of "Country Delight" and "Amul", we leave you with a question to think about - Which brand would you choose and why?

Resources to Read

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