Strategic Management

Industry: Direct to home Milk

and Milk products
Company: SUPR Daily
Group: 9
Mitesh Baheti D008
Harsh Gandhi D018
Swati Jain D027
Saurav Mansingka D037
Ashutosh Singh D053
About Supr Daily
• A subscription based micro delivery company owned by Supr Techlabs
Pvt Ltd.

• Founded in Year 2015 by Puneet Kumar and Shreyas Nagdawane

• It offers products like milk, bread, eggs, vegetables etc.

• They source their products directly from the farms and deliver them
directly to customer’s home, reducing cost and bringing efficiency
Why should the customers prefer Supr
Daily?
 Existing Business Model
Main highlights
•The hybrid model for last mile workforce -
Consisted of existing milkmen and part-time
workers.
•Efficient mapping of delivery routes -
Significantly lesser number of delivery
executives is required to complete ‘x’
amount of deliveries since all the delivery
routes are mapped efficiently.
•Unlimited Delivery Base - Focusing on
morning delivery helped easier hiring -
basically, anyone who is interested in
working for a few hours in the morning can
be a Supr Daily delivery executive.
•Resource optimization - Planned demand
reduces inefficiencies and optimizes better
utilization of resources.
•Drastically reduced cost - The right
combination of technology and process in
every step of the cycle - procurement,
warehousing, sorting, helps reduce cost.
•Predictive inventory - Subscription model
makes way for strong predictive inventory
algorithms which ensure almost zero
wastage.
Existing Business Model
How does the App work
Idea behind the Logo Change

Their goal has always been to

make the daily life less
stressful. To free up every day
so people can live more, do
more and be more. Their new
logo symbolizes this idea and
the message they want to
convey
Strategic direction of the company over
the last 3 years Forming a robust supply chain by
partnering with different
suppliers
[For Bengaluru, the company has
Retention of partnered with milk suppliers
customers by Nandini, Thirumala and
Akshayakalpa, while Heritage and
providing high quality
Increase the Vijaya are prominent partners in
service and Hyderabad. Chitale, Amul and
customer base by
convenience so that Katraj Dudh are supplying milk to
getting more
the customers become Suprdaily in Pune.]
customers on the
habituated using the
platform by offering
platform
discounts and high
quality service
• The margins earned on milk is low but the frequency of purchase is high so the focus on the
milk category is to make the consumers habituated with their services.
• After that the plan is to add more and more daily essential categories which are having high
margins to increase the revenues

• Strong distribution channel –
•
External Environment
Opportunities
• Funding from Swiggy
• Milk delivery market is
growing
Threats
• Very strong competition from
existing established players
like DailyNinja, Milkbasket
• Big retail giants entering the
milk delivery market
TOWS Matrix
Internal Environment
Strengths Weakness
• Handling fresh produce and
tied up with 8000+ farms and perishables is our biggest
5000+ individual farmers challenge
First mover advantage – loyal
customers
With SuprDaily’s technology for
With Swiggy’s fleet, Supr daily can
sourcing dairy products quickly leverage this opportunity to handle
and Swiggy’s fleet, the company
the distribution more effectively and
will be able to make deliveries
ensure timely delivery of orders
across different geographies
Analyse the seasonal variations in
Leverage the distribution channel
demand and plan accordingly
and first mover advantage to
expand to different customer base Focus should be on keeping freshness of
by promoting activities and products and timeliness of delivery
which are two critical factors which
improving the current service have impact on customer satisfaction in
offering delivery of perishable products.
External environment for the company changing over the next 5 years

P • Increasing purchasing
E
• Tax policy
• E-commerce laws power of individuals
• Trade restrictions • Customers ready to pay
• Tariffs for convenience

PEST
analysis
• R&D activity • People becoming more
• Platform Improvement health conscious
• Six sigma efficiency • Increasing corporate
work force in females
T • Increasing number S
of nuclear families.

Milkbasket is perceived
as one of Supr Daily's
biggest rivals. Milkbasket
was founded in 2015, and
operates in Bangalore,
Gurugram, Ghaziabad,
Noida, and Hyderabad
Competitor Analysis
DailyNinja is Supr Daily's #1 rival. DailyNinja
is a Private company that was founded in
Thane West, Maharashtra in 2015.
DailyNinja currently does 70,000+
deliveries per day and operates out of
six cities - Bangalore, Hyderabad, Chennai,
Mumbai, Pune and Mysore.
Doodhwala provides a mobile-based
subscription application that allows users to
offer milk and household products.
Doodhwala has 70+ types of milk on its
platform. They sold off their operations to
Fresh to Home. They operate in 3 cities -
Bengaluru, Hyderabad, and Pune

Funding From They acquired hyperlocal delivery

Unilever firms WakeupBasket and 4amShop

On BB Daily, one can subscribe for milk, fruits

The Amazon Fresh store serve a complete grocery experience with the most
convenient 2-hour delivery slots powered by Prime Now from 6 AM to
midnight on Amazon.in.
With Amazon Fresh, customers can order their complete grocery
requirements across a selection of over 5000 fruits & vegetables, dairy,
meat, ice-creams, and dry grocery like staples, packaged food, personal care
and home care.
and vegetables, bread, dairy, eggs, breakfast
cereals, tender coconut, etc for “every day or
alternate days”. You can place orders till 10
pm, and change that subscription too
(increase or decrease the milk quantity etc).
Delivery happens between 5 am and 7 am.
Acquired Raincan
and Morningcart
Strategic plan for the next 5 years
Focus on marketing and promotional
efforts:
• Appointing Wavemaker agency to
handle the offline media duties
for Supr Daily Expand to top 10 cities in
• Appointing Famous Innovations as India – currently presence in
its creative agency. 6 cities (Swiggy allocated
$10 million for Supr Daily
for expansion

The company has refreshed its

brand identity and launched a new
logo to signify the brand’s core
essence of helping the customer
experience more, with less
 Launched its first brand campaign
#BeSuprDaily
The Supr Daily campaign highlights the convenience, simplicity,
and reliability of daily grocery delivery options offered by the
brand.

• Designed around four short digital videos, the campaign focuses on the
introduction of a new category of daily grocery delivery that enables
customers to buy fresh and eat fresh, every single day.
• The films were rolled out on 4th February 2020 across the brand’s digital
and social media platforms
Juggling Home And Work - Supr Daily - Groceries Delivered Daily - #BeSuprDaily.mp4
 Strategic options – Blue ocean
strategy
Currently, in India Direct to home dairy products is only available in Urban markets – in 6 cities majorly. This is because of -
1. Traditional concept of Milkman
2. Low Knowledge on requirement for Adulteration of milk
3. Lack of Infrastructure and market penetration
This makes the business model in Blue ocean strategy as the market opportunity and purse value that is available is huge.
 ERRC Grid
Eliminate Raise
Biggest problem in this industry has
been Adulteration of dairy products. Quality of products delivered
Removing the uncertainty in time of One stop solution
delivering products at door step
Unorganised to Organised Timely products delivery
New
Value
Reduce Create

Reducing the hassle of daily grocery Trust in customers to get higher

Cost to serve customers by purse value of subscription

establishing efficient delivery Efficient platform to get in more

channel suppliers
 VRIO Framework
Organization
Value Rarity Imitability
Features / Resources (are we organized around
(is it valuable?) (is it rare?) (is it hard to imitate?)
it?)

The effort that has been With funding, NO YES, Vast expansion &
Distribution Channel YES put by the company, its rapid growth
Rare for now.

The major issue in

Demand Forecast subscription model lies
here

YES
Only close competition is NO YES
Scale of business YES
BB Daily by BigBasket

•
Customer base YES YES YES
NO YES
YES

Vast distribution network

No minimum order for Vast variety of products Strong supplier base
Convenience makes it possible – Timely
customers available
delivery
New trends coming over the years which will be
incorporated in the 5 years strategic plan

Specialised Infants & kids Section to increase the wallet amount for
subscription

Bringing in Loyalty programme for Suppliers and customers

Make it Voice friendly by enabling it with Alexa, Google home etc & also
be sensor friendly to enable auto ordering
Suggestions for the existing model to add value to their service
Supr Daily should focus on increasing the varieties of
milk available on its platform.
• Currently the variety is much more than the local dairy but when
compared to the competitors on the same platform it is less.
• Be it A2 milk, organic milk, goat milk, camel milk or lactose-free
milk – they should offer different varieties to suit diverse dietary
requirements, making it the ultimate destination for all kinds of
milk.

Expand to different offerings –

• As margins for milk is low they need to expand their
offerings to up revenues.
• Delivering cut fruits during breakfast and lunch time
can be their new offering. It can be marked-up due to a
lack of clear pricing, and thereby increase their margins
Launching their own private labels –
• Higher margins on private label brands
• Many competitors are having their own private
label brands such as bigbasket.
• It helps them to expand into various other
categories and makes the entire model
sustainable.
Thank you