Mysore Ghee Stores: Expansion Strategy for Clarified Butter Business

Alur, Sivakumar and Mukherjee, Sulagna and Prasad, Durga and Rangan, Srinivasan U (2017) Mysore Ghee Stores: Expansion Strategy for Clarified Butter Business. TAPMI, Manipal.

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Abstract

In early 2016, Satish Kumar, Chief Executive Officer of Mysore Ghee Stores (MGS), found himself at a crossroads. He was not sure if his new strategy of targeting end users was working. MGS was a 50-year-old business that started out by supplying ghee (clarified butter) to households and later switched to businesses, mainly restaurants and sweet shops in Hyderabad in India. Decreasing margins in the restaurant/sweets business and rising packed ghee sales to retail customers by its rivals prompted MGS to re-enter the retail market in 2012. Kumar’s objective was to serve high-quality ghee to end consumers and build up MGS’s brand. In October 2013, to increase MGS’s visibility, he tied up with the national retail chain More TM to supply packed ghee.He also made its packed ghee available across multiple retail channels such as regional chains, independent retail outlets and e-retailers.Despite these efforts, MGS’s packed ghee sales through such channels were not encouraging. Kumar found that competition was tough and consumer retention a challenge. In April 2016, he found himself wondering whether his strategy was correct and if he was executing it well

Item Type: TAPMI Cases/ Working Cases
Uncontrolled Keywords: Mysore Ghee; Butter Business
Subjects: Finance
Divisions: Finance and Strategy
Depositing User: Mr. Muralidhara D
Date Deposited: 05 Mar 2019 04:24
Last Modified: 05 Mar 2019 04:24
URI: http://tapmi.informaticsglobal.com/id/eprint/591

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